Fiscal Contingency Preparedness Act
- Sponsor
- Rep. Cline, Ben [R-VA-6]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Mar 18, 2026
Bottom line
The Fiscal Contingency Preparedness Act establishes a new annual reporting requirement for the Treasury and OMB to proactively assess the fiscal risks posed by potential national and international crises, with oversight from the GAO.
What it actually does
This bill mandates that the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget (OMB), conduct an annual examination of the Federal Government's ability to respond to various national and international fiscal shocks. These shocks include economic recessions, natural disasters, health crises, and cyber attacks. The examination will assess short-term and long-term fiscal effects and will be included as a component of the Treasury's annual financial report. Additionally, it requires the Government Accountability Office (GAO) to periodically review the methodology and findings of this examination.
Proponents argue
Supporters argue that this bill is a crucial step towards enhancing the nation's fiscal resilience by ensuring the government proactively identifies and prepares for potential economic and national security threats. They contend that understanding the potential fiscal impacts of various shocks, from pandemics to cyber attacks, is essential for informed policymaking and can help mitigate the severity of future crises, ultimately protecting taxpayers and the economy.
Opponents contend
Critics might argue that while the intent is laudable, this bill could impose an unnecessary administrative burden on the Treasury and OMB, diverting resources from other critical functions. They may contend that existing mechanisms already provide sufficient fiscal risk assessment, or that the highly speculative nature of forecasting diverse 'shocks' could lead to reports that are too general to be actionable, thus providing limited practical value despite the cost of production.
The bill is very short and straightforward, making it highly accessible for a quick and comprehensive understanding of its provisions.
Section 2(a)
Annual Examination of Fiscal Shocks
This provision amends existing law (31 U.S.C. 331(e)) to require the Secretary of the Treasury, working with the Director of the Office of Management and Budget, to include a new section in their annual financial report. This new section must examine the fiscal risks and impacts of the Federal Government's response to potential national and international fiscal shocks. It specifically lists various types of events, such as economic recessions, natural disasters, health crises, and cyber attacks, that must be assessed for their short-term and long-term fiscal effects on the government.
Supporters argue
Proponents assert that this provision is vital for national security and economic stability, as it forces the government to systematically analyze and prepare for a wide array of potential crises. They argue that such foresight can lead to more effective and less costly responses when shocks inevitably occur, thereby safeguarding the nation's financial health.
Critics contend
Opponents might contend that while the goal is good, the scope of potential shocks is so broad and unpredictable that any resulting analysis will be inherently speculative and potentially inaccurate. They may argue that the resources dedicated to this extensive annual report could be better spent on addressing current fiscal challenges or on more targeted, specific risk assessments.
Tradeoffs
This provision balances the desire for comprehensive fiscal preparedness against the practical challenges and administrative costs of forecasting highly diverse and unpredictable future events. There is a tension between the need for detailed, actionable insights and the inherent difficulty in providing precise estimates for hypothetical, large-scale crises.
Section 2(c)
GAO Oversight and Review
This section requires the Comptroller General of the United States, who heads the Government Accountability Office (GAO), to review the methodology and results of the Treasury and OMB's fiscal examination. This review must occur within one year of the first examination's publication and periodically thereafter as deemed necessary. The GAO is then required to publish its findings on its website and submit the report to the Senate and House Budget Committees.