Extraordinary Measures Transparency Act
- Bill Number
- H.R. 737
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Economics and Public Finance
- Status
- Introduced
- Latest Action
- 2025-01-24: Referred to the House Committee on Ways and Means.
- Last Updated
- 2025-06-13T18:07:54Z
AI-Generated Summary
Purpose of the Legislation
The Extraordinary Measures Transparency Act (H.R. 737) aims to promote transparency in how the U.S. Department of the Treasury manages the federal debt limit. It requires the Secretary of the Treasury to provide detailed reports to Congress about "extraordinary measures"—temporary financial maneuvers used to avoid default when the government cannot borrow more money due to the statutory debt ceiling.
Key Provisions
- Pre-Debt Limit Report: If the Secretary determines the public debt will hit the limit within 30 days, a report must be sent to Congress including:
- A description of planned extraordinary measures.
- An estimate of their overall cost.
- A projection of how long these measures can sustain federal funding.
- A projection of administrative costs (e.g., personnel, fees, or other expenses tied to implementing the measures).
- Daily Reports During Use: While extraordinary measures are in effect, the Secretary must submit daily reports to Congress listing:
- Specific measures taken.
- Details on money transfers, including amounts and source accounts.
- Post-Use Report: Once extraordinary measures end, a final report to Congress must summarize:
- All measures used.
- Actual administrative costs incurred.
- Definitions:
- Administrative cost: Expenses like staff time, consultant fees, or other direct costs of the measures.
- Debt limit: The maximum amount of federal borrowing allowed under existing law (sections 3101 and 3101A of title 31, U.S. Code).
- Extraordinary measures: Specific actions such as suspending investments in federal retirement funds, halting new investments in stabilization or retirement accounts, redeeming securities early, or other Treasury-determined steps to free up borrowing capacity.
- Secretary: The Secretary of the Treasury.
The bill amends subchapter II of chapter 31, title 31, U.S. Code, by adding a new section (3131) and updates the chapter's table of contents.
Significant Changes to Existing Law
This legislation introduces mandatory reporting requirements that do not currently exist in U.S. law. Previously, the Treasury could implement extraordinary measures without routine, detailed disclosures to Congress. The new section 3131 formalizes these obligations, shifting from discretionary updates to structured, timed reports, enhancing congressional oversight of debt limit management.
Potential Impacts
- On Government Agencies: The Treasury Department will face increased administrative burdens, including daily reporting during crises, which could strain resources but improve internal accountability. Affected funds (e.g., Civil Service Retirement and Disability Fund, Postal Service Retiree Health Benefits Fund) may experience temporary disruptions in investments or redemptions.
- On Citizens: Greater transparency could build public trust in debt management by making the process more visible, potentially reducing uncertainty during debt ceiling debates. Retirees relying on affected federal funds might see indirect effects from suspended investments, though these measures are designed to be reversible.
- On International Relations: Minimal direct impact, but clearer U.S. fiscal reporting could bolster global confidence in U.S. debt obligations, as extraordinary measures help avoid default and maintain the dollar's role in international finance.
Main Stakeholders Affected
- Congress: Primary beneficiary, gaining detailed insights for oversight and decision-making on debt limit increases.
- U.S. Department of the Treasury: Directly responsible for compliance, reporting, and implementing measures.
- Federal Employees and Retirees: Impacted through funds like the Civil Service Retirement and Disability Fund, where investments may be paused.
- General Public and Financial Markets: Indirectly affected via transparency that influences perceptions of U.S. fiscal stability.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens statutory oversight of executive fiscal actions under title 31, U.S. Code, without altering the debt limit itself or the president's borrowing authority. It ensures reports are factual and timely, potentially reducing legal disputes over Treasury maneuvers.
- Constitutional: Aligns with Congress's constitutional power of the purse (Article I, Section 9), promoting checks and balances by requiring executive branch transparency on spending and borrowing.
- Political: Could intensify debates on the debt ceiling by providing data on measure costs and durations, pressuring lawmakers to act sooner. It may politicize Treasury decisions but fosters bipartisanship through mandatory, neutral reporting, as introduced by representatives from both parties.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Davis, Donald G. [D-NC-1]
Recent Actions
- 2025-01-24: Referred to the House Committee on Ways and Means.
- 2025-01-24: Introduced in House
- 2025-01-24: Introduced in House
Bill Versions
- Extraordinary Measures Transparency Act — issued 2025-01-24 — PDF (5 pages)