North Indy News

U.S. Senators Todd Young (R-Ind.) and Mark Warner (D-Va.) have introduced the Fiscal Contingency Preparedness Act, a bill that would require the Department of Treasury to conduct annual stress tests on the federal government’s finances. The goal is to evaluate how well the U.S. could respond financially to major crises, such as economic recessions or significant natural disasters.

Senator Young said, “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. 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.”

Senator Warner added, “The past decade has taught us the importance of bracing for the unexpected – whether that be a world-wide pandemic, a devastating weather event, or a cyberattack on major infrastructure. This legislation will allow the government to take a hard look at our nation’s financial resilience in the face of various crises, disasters, and other extraordinary events, and provide Congress with critical context needed to make important financial and policy decisions.”

If enacted, this legislation would mandate that the Secretary of Treasury collaborate with the Director of the Office of Management and Budget (OMB) on these assessments. The process would be audited by the Government Accountability Office (GAO). The annual reviews would cover a range of scenarios—including economic downturns, energy crises, health emergencies like pandemics, armed conflicts or major cyber-attacks—to measure their impact on federal fiscal health.

Maya MacGuineas, President of the Committee for a Responsible Federal Budget, commented: “Policymakers and the public need access to the best available analysis on how a severe economic shock may impact the federal government’s finances. While our nation’s largest banks are required to undergo regular stress tests to prepare for an unexpected shock, the federal government lacks an equivalent playbook. It is essential that the federal government be prepared for a possible fiscal emergency, and we commend Senators Warner and Young for introducing this bipartisan, commonsense proposal to strengthen our fiscal resilience.”

A similar version of this bill was introduced in the House by Representatives Ben Cline (R-VA-6) and Jared Golden (D-ME-2).

The full text of Fiscal Contingency Preparedness Act is available online.