U.S. Rep. Marie Gluesenkamp Perez, D-Skamania, along with Reps. Ben Cline, R-Virginia, Jared Golden, D-Maine, and Jack Bergman, R-Michigan, this week introduced the bipartisan Fiscal Contingency Preparedness Act to require the federal government to assess and report its ability to respond to major national emergencies such as economic downturns, energy crises and national security threats, a news release from Gluesenkamp Perez stated.
The legislation directs the secretary of the treasury and the director of the Office of Management and Budget to produce an annual report measuring the government’s fiscal strength and readiness, according to the release. After this report is released, the Government Accountability Office would conduct its own independent review and publish its findings to ensure accuracy and transparency.
“As a small business owner, I know how important it is to plan for a rainy day — and hardworking families in Southwest Washington know it, too,” Gluesenkamp Perez said. “Our federal government should hold itself to the same standard and be ready to weather any crisis that comes its way. Our bipartisan legislation would require annual assessments of our national fiscal strength when faced with different crises — so we can better prepare our economy to work for the American people under any circumstances.”
The national debt is more than $36 trillion, and interest payments now exceed spending on Medicare and national defense, the release stated. According to the Congressional Budget Office, interest payments on the national debt will permanently exceed defense spending. By 2050, interest costs are expected to be more than double the size of the defense budget. Gross federal debt is projected to hit 123 percent of GDP by September 2025, surpassing the previous World War II-era high of 119 percent.
“Policymakers and the public need access to the best available analysis on how a severe economic shock may impact the federal government’s finances. While our nation’s largest banks are required to undergo regular stress tests to prepare for an unexpected shock, the federal government lacks an equivalent playbook,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said. “It is essential that the federal government be prepared for a possible fiscal emergency, and we commend Representatives Cline and Golden for introducing this bipartisan, commonsense proposal to strengthen our fiscal resilience.”
Full text of the legislation is available at shorturl.at/huYXP.
