Fiscal Contingency Preparedness Act

Fiscal Contingency Preparedness Act would add a new requirement to the Treasury’s annual reporting process. Specifically, it directs the Secretary of the Treasury, working with the Director of the Office of Management and Budget (OMB), to examine how the federal government would respond to potential fiscal shocks and the related fiscal risks and impacts. The analysis must cover shocks such as recessions, energy crises, natural disasters, health crises, armed conflict, cyber attacks, and financial crises, and it must estimate both short-term and long-term fiscal effects, as well as identify economic indicators to convey those effects. The bill also provides for the Government Accountability Office (GAO) to review the methodology and findings and report to Congress. The requirement would become effective on the later of (a) the first Treasury/OMB report following enactment, or (b) 180 days after enactment.