Fiscal Contingency Preparedness Act
- Bill Number
- H.R. 4642
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-03-18: Ordered to be Reported (Amended) by the Yeas and Nays: 39 - 1.
- Last Updated
- 2026-06-09T08:06:53Z
AI-Generated Summary
Purpose
The Fiscal Contingency Preparedness Act (H.R. 4642) aims to improve the federal government's readiness for unexpected financial disruptions by requiring an annual analysis of fiscal risks and response capabilities. It focuses on potential "fiscal shocks"—sudden events that could strain the economy or government finances—and ensures these risks are evaluated and reported to Congress and the public.
Key Provisions
- Annual Examination and Report: The Secretary of the Treasury, working with the Director of the Office of Management and Budget (OMB), must include a detailed assessment in the government's existing annual financial report (under 31 U.S.C. § 331(e)). This assessment covers:
- Fiscal risks and impacts from potential events, such as economic recessions, energy crises, natural disasters, health pandemics, armed conflicts, cyber attacks, or financial crises.
- Estimates of short-term and long-term effects on federal finances.
- Key economic indicators (selected by Treasury and OMB) to illustrate these effects clearly.
- Methodology Flexibility: The analysis can draw on historical examples of similar events and their government responses. The report's format can be adapted to best communicate the findings.
- Effective Date: The new requirements start with the first annual report after enactment or 180 days after enactment, whichever is later.
- GAO Oversight: The Government Accountability Office (GAO) must review the methodology and results of the first such examination within one year of its publication, and periodically afterward as needed. GAO will publish findings online and submit reports to the Senate and House Budget Committees.
Significant Changes to Existing Law
This bill amends Section 331(e) of title 31, United States Code, which already requires an annual financial report from the Treasury Secretary on the government's financial position. The key addition is a new subsection (3) mandating the inclusion of forward-looking fiscal shock analysis, expanding the report from historical and current finances to proactive risk assessment. No other major alterations to existing law are made.
Potential Impacts
- Government Agencies: Treasury and OMB will face additional workload to conduct and integrate the annual analysis, potentially improving inter-agency coordination on fiscal planning. GAO's reviews could lead to refinements in how risks are evaluated, enhancing overall government preparedness.
- Citizens: By identifying vulnerabilities to events like recessions or disasters, the law could help prevent or mitigate economic hardships, such as job losses or inflation, through better-informed policy responses. It promotes transparency, allowing public insight into federal fiscal resilience.
- International Relations: The analysis of global shocks (e.g., pandemics or conflicts) may influence U.S. foreign aid, trade policies, or alliances, fostering more stable international economic ties, though direct impacts are indirect and preparatory.
Main Stakeholders Affected
- Federal Agencies: Primarily the Department of the Treasury, OMB, and GAO, which handle the reporting and oversight.
- Congress: Budget committees in the Senate and House, who receive GAO reports and use the analysis for legislative oversight and budgeting.
- The Public and Economy: Broader stakeholders include businesses, taxpayers, and state/local governments, as improved fiscal preparedness could stabilize national finances during crises.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill builds on existing statutory reporting duties without creating new enforcement mechanisms, ensuring compliance through routine government processes. It avoids mandating specific actions beyond analysis, reducing legal challenges.
- Constitutional: Aligns with Congress's power under Article I to manage federal finances and oversee the executive branch, promoting accountability without infringing on separation of powers.
- Political: Enhances fiscal transparency, which could support bipartisan efforts on budget resilience but might spark debates over resource allocation for the analysis or interpretations of risks. It encourages proactive governance, potentially influencing future emergency funding debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (22)
Rep. Golden, Jared F. [D-ME-2], Rep. Bergman, Jack [R-MI-1], Rep. Perez, Marie Gluesenkamp [D-WA-3], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Morelle, Joseph D. [D-NY-25], Rep. Davidson, Warren [R-OH-8], Rep. Cuellar, Henry [D-TX-28], Rep. Houchin, Erin [R-IN-9], Rep. Landsman, Greg [D-OH-1], Rep. Edwards, Chuck [R-NC-11], Rep. Huizenga, Bill [R-MI-4], Rep. Peters, Scott H. [D-CA-50], Rep. Womack, Steve [R-AR-3], Rep. Case, Ed [D-HI-1], Rep. Barr, Andy [R-KY-6], Rep. Davis, Donald G. [D-NC-1], Rep. Van Epps, Matt [R-TN-7], Rep. Houlahan, Chrissy [D-PA-6], Rep. LaLota, Nick [R-NY-1], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Moore, Blake D. [R-UT-1], Rep. Davids, Sharice [D-KS-3]
Recent Actions
- 2026-03-18: Ordered to be Reported (Amended) by the Yeas and Nays: 39 - 1.
- 2026-03-18: Committee Consideration and Mark-up Session Held
- 2025-07-23: Referred to the House Committee on Oversight and Government Reform.
- 2025-07-23: Introduced in House
- 2025-07-23: Introduced in House
Bill Versions
- Fiscal Contingency Preparedness Act — issued 2025-07-23 — PDF (5 pages)