Fiscal Contingency Preparedness Act
Summary
The Fiscal Contingency Preparedness Act mandates the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, to produce an annual report examining the Federal Government's capacity to respond to potential fiscal shocks. This report will assess the fiscal risks and impacts related to various events, including economic recessions, energy crises, natural disasters, health crises, armed conflicts, cyber attacks, and financial crises. The Government Accountability Office (GAO) will then review the methodology and results of this fiscal analysis and report its findings to Congress.
Expected Effects
The act aims to improve the Federal Government's preparedness for fiscal shocks by requiring regular assessments of potential risks and impacts. This could lead to better-informed policy decisions and more effective responses to future crises. The GAO review adds an extra layer of oversight and accountability to the process.
Potential Benefits
- Improved understanding of potential fiscal risks.
- Better-informed policy decisions during crises.
- Enhanced government accountability through GAO review.
- Proactive planning for various types of fiscal shocks.
- Increased transparency regarding the government's fiscal preparedness.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased administrative burden on the Treasury and OMB.
- The effectiveness of the report depends on the accuracy of the assessments and the willingness of policymakers to act on the findings.
- The report may not be comprehensive enough to cover all potential fiscal shocks.
- Possible delays in implementation due to coordination requirements.
- The cost of producing the report and conducting the GAO review.
Constitutional Alignment
The Act appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. By requiring the assessment of fiscal risks, the Act supports Congress's ability to manage the nation's finances responsibly. There are no apparent infringements on individual rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).