Gluesenkamp Perez, Bipartisan Colleagues Introduce Legislation to Establish National Fiscal Contingency Plans

Last week, Rep. Marie Gluesenkamp Perez (WA-03), along with Reps. Ben Cline (VA-06), Jared Golden (ME-02), and Jack Bergman (MI-01), introduced the bipartisan Fiscal Contingency Preparedness Act to require the federal government to assess and report its ability to respond to major national emergencies like economic downturns, energy crises, and national security threats.

The legislation directs the Secretary of the Treasury and the Director of the Office of Management and Budget (OMB) to produce an annual report measuring the government’s fiscal strength and readiness. After this report is released, the Government Accountability Office (GAO) would conduct its own independent review and publish its findings to ensure accuracy and transparency.

“As a small business owner, I know how important it is to plan for a rainy day – and hardworking families in Southwest Washington know it too,” said Rep. Gluesenkamp Perez. “Our federal government should hold itself to the same standard and be ready to weather any crisis that comes its way. Our bipartisan legislation would require annual assessments of our national fiscal strength when faced with different crises – so we can better prepare our economy to work for the American people under any circumstances.”

The national debt is more than $36 trillion, and interest payments now exceed spending on Medicare and our national defense. According to the Congressional Budget Office, interest payments on the national debt will permanently exceed defense spending. By 2050, interest costs are expected to be more than double the size of the defense budget. Gross federal debt is projected to hit 123 percent of GDP by September 2025, surpassing the previous World War II-era high of 119 percent.

Early this month, Rep. Gluesenkamp Perez voted against the budget reconciliation law that will explode the deficit by $4.1 trillion.

This year, Rep. Gluesenkamp Perez introduced bipartisan bills to bring transparency to the federal budget process, establish a bipartisan fiscal commission, and to ensure Congress evaluates the impacts of interest on our national debt.

“With our debt piling up and interest payments skyrocketing, we cannot afford to be caught flat-footed when the next emergency hits. Just like households plan ahead for tough times, the federal government must do the same. Americans deserve a clear picture of how much room we actually have to respond to future crises. Congress must face the facts and make responsible decisions now, before an emergency strikes,” said Rep. Cline. “The best way to protect the American people is to be prepared. This legislation gives Congress the tools it needs to manage taxpayer dollars responsibly, respond to national emergencies, and chart a stable financial future for generations to come.”

“One of the many lessons the Marine Corps taught me was to have a plan for the worst-case scenario,” said Rep. Golden. “This bipartisan bill would force Washington to be clear-eyed about our fiscal outlook in potential national emergencies, which is the necessary first step for responsible planning to keep America stable and secure.”

“We know that when a crisis hits, preparation makes all the difference. The Fiscal Contingency Preparedness Act is a commonsense step to ensure we’re ready to respond to whatever comes our way – whether it’s an economic downturn, a natural disaster, or a national security threat,” said Rep. Bergman. “If we’re serious about keeping our Nation strong and secure, we need to start planning ahead and making our decisions based on reality – not scrambling to prepare after the fact.”

“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,” said Maya MacGuineas, President of the Committee for a Responsible Federal Budget. “It is essential that the federal government be prepared for a possible fiscal emergency, and we commend Representatives Cline and Golden for introducing this bipartisan, commonsense proposal to strengthen our fiscal resilience.”

Full text of the legislation is available here.