H.R. 4642: Fiscal Contingency Preparedness Act (119th Congress) Bill Summary

This bill, known as the Fiscal Contingency Preparedness Act, aims to improve the federal government's ability to respond to unexpected financial challenges. It introduces several key components:

Annual Report Requirement

The Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, is required to examine the fiscal risks and impacts of the government's response to potential national and international financial shocks. This will be part of an annual report.

Assessment of Fiscal Risks

The examination must include:

Assessment of fiscal risks related to significant events such as:

An economic recession or depression
A domestic energy crisis
A catastrophic natural disaster
A health crisis like a global pandemic
A significant armed conflict or event
A significant cyber attack
A financial crisis

Estimation of the short-term and long-term fiscal effects on the federal government resulting from such events.
Description of important economic impacts that illustrate these fiscal effects.

Consideration of Historical Events

When conducting the examination, the Secretary may consider historical instances of these significant events to better understand potential impacts and responses.

Implementation Timeline

The provisions of this bill will take effect after:

The first date after the bill is enacted when the Secretary of the Treasury submits the required report.
180 days following the bill's enactment.

Government Accountability Office (GAO) Report

Within one year after the initial examination report is published, the GAO will:

Review the methodology and findings of the fiscal analysis from the examination.
Publish a report of its findings on its website.
Submit the published report to the Senate and House Budget Committees.

Summary

The bill is designed to enhance the federal government’s readiness for financial crises by requiring systematic evaluations of risks and potential responses, thus aiming for better fiscal preparedness in the future.