Cost-of-living Emergency Act
- Bill Number
- S. 4266
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2026-03-26: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-04-21T14:06:39Z
AI-Generated Summary
Cost-of-Living Emergency Act (S. 4266)
Purpose
The legislation declares a national emergency due to high costs of living, focusing on basic household necessities like food, housing, fuel, medical services, and utilities. It aims to reduce these costs for average U.S. households (those earning below the median income) through coordinated government actions, enforcement, and policy recommendations during a 180-day period (extendable by Congress).
Key Provisions
- Emergency Declaration (Sec. 3): Declares a cost-of-living emergency, lasting 180 days unless extended via expedited joint resolution.
- Council of Economic Advisers (CEA) Actions (Sec. 4):
- Prioritizes advice on affordability of necessities, pressures on low/middle-income families, and policy impacts.
- Establishes a Cost-of-Living Emergency Office.
- Appoints six Special Advisors to the President (for groceries, housing, utilities, health care, transportation, and wages), each leading weekly task forces, issuing weekly reports, hosting public listening sessions (3x/year), and testifying annually to Congress.
- Requires quarterly State of Household Budgets reports on metrics like purchasing power, wage growth, debt, and inflation.
- Household Costs Impact Statements (Sec. 5): Agencies must include analyses of regulatory effects on average households vs. large corporations in major rules, made publicly available (unless security-related).
- Joint Task Force on Consumer Costs (Sec. 6): Led by Attorney General and FTC Chair; monitors prices, investigates gouging/anticompetitive practices, coordinates with states, and creates a public reporting portal. Uses existing antitrust laws; reports quarterly to Congress.
- Defense Production Act (DPA) Use (Sec. 7): Mandates expanding supply of necessities via loans, guarantees, purchase commitments, and subsidies to small/medium businesses. Requires strategic plans, economic analyses, and certifications for cost reductions within 180 days. Exempts from "national defense" requirement.
- Cost-of-Living Commission (Sec. 8): Bipartisan 12-member congressional panel (6 from each party, including outside experts); holds hearings, issues reports/recommendations/legislative language within 180 days (and before emergency ends), with CBO cost estimates. Requires bipartisan approval for actions; terminates 30 days after final report.
Significant Changes to Existing Law
- Expands CEA mandate under the Employment Act of 1946 to focus on household costs.
- Adds new regulatory requirement via OMB for household impact statements in major rules.
- Creates temporary task force enhancing DOJ/FTC coordination on price enforcement.
- Mandates DPA Title III use for civilian consumer goods, bypassing national defense limits—a novel application.
- Establishes new congressional commission similar to select committees, with fast-track reporting and bipartisan veto-proof thresholds.
Potential Impacts
- Government Agencies: Increases coordination (e.g., weekly task forces, reports), enforcement (price monitoring), and supply-chain interventions; temporary resource shifts to CEA, DOJ, FTC, OMB.
- Citizens: Aims to lower costs of essentials via enforcement, supply boosts, and policy focus; public input via listening sessions/portals; better transparency on regulations.
- Businesses: Heightened scrutiny on large firms for pricing; aid (loans/subsidies) for small/medium producers; potential purchase commitments stabilizing prices.
- International Relations: Minimal direct impact, though supply-chain fixes could affect imports.
Main Stakeholders Affected
- Average U.S. households (primary beneficiaries, especially low/middle-income).
- Low/middle-income families facing cost pressures.
- Large corporations (scrutinized for regulatory benefits and pricing).
- Small/medium businesses (eligible for DPA aid).
- Federal agencies (CEA, OMB, DOJ, FTC, covered DPA agencies).
- Congress and states (commission, reporting, state AG guidance).
- Consumers/whistleblowers (reporting portals, listening sessions).
Notable Legal, Constitutional, or Political Implications
- Legal: Leverages National Emergencies Act procedures; expands DPA beyond defense (potentially controversial under original intent); strengthens antitrust enforcement without new penalties.
- Constitutional: Creates congressional commission with subpoena/hearing powers, funded by Congress; bipartisan quorum/approval requirements promote balance.
- Political: Bipartisan commission structure (requiring cross-party votes) reduces gridlock risk; temporary nature limits long-term commitments; focuses on populist issues like inflation/gouging.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-03-26: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-03-26: Introduced in Senate
Bill Versions
- Cost-of-living Emergency Act — issued 2026-03-26 — PDF (32 pages)