Submitted by Office of U.S. Senator Todd Young
Young
U.S. Senators Todd Young (R-Ind.) and Mark Warner (D-Va.) have introduced the Fiscal Contingency Preparedness Act, legislation to require the Department of Treasury to conduct annual “stress tests” on the federal government’s finances.
The legislation would require Treasury to examine the U.S. government’s financial ability to respond to potentially catastrophic events – like an economic recession or a significant natural disaster – and put forth a report on the short- and long-term fiscal risks and impacts associated with such a response.
“The United States has faced several threats to the stability of our economy and financial systems in recent years, including the 9/11 attacks, the 2008 financial crisis, and the COVID-19 pandemic,” Sen. Young said. “Our bill will require yearly reviews of America’s fiscal strength to ensure policymakers can properly respond to future emergencies and make informed policy decisions.”
Specifically, the Fiscal Contingency Preparedness Act would require that the Secretary of the Treasury work with the Director of the Office of Management and Budget (OMB) to complete these annual assessments, which would be subject to audit by the Government Accountability Office (GAO). The bill would assess distinct shocks to the fiscal health of the economy, including events like an economic recession or depression, a domestic energy crisis, a natural disaster, a health crisis (such as a global pandemic), a significant armed conflict or event, a significant cyber-attack, or a financial crisis.
Companion legislation was introduced in the House by Representatives Ben Cline (R-Va.-6) and Jared Golden (D-Maine-2).
Click here to read the full text of the bill.