Golden, Cline introduces bipartisan Fiscal Contingency Preparedness Act

WASHINGTON— With the national debt topping $36 trillion and interest payments now exceeding spending on Medicare and national defense, Congressman Jared Golden (ME-02) has signed on as the lead Democratic cosponsor of the Fiscal Contingency Preparedness Act, introduced today by Congressmen Ben Cline (VA-06).

This bipartisan bill would 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 bill was also sponsored by Congressman Jack Bergman (MI-01) and Congresswoman Marie Gluesenkamp Perez (WA-03). 

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.

“One of the many lessons the Marine Corps taught me was to have a plan for the worst-case scenario,” Golden said. “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.”

“With our debt piling up and interest payments skyrocketing, we cannot afford to be caught flat-footed when the next emergency hits," Cline said. "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.”

“We know that when a crisis hits, preparation makes all the difference," Bergman said. "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. 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."

“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,” Gluesenkamp Perez said. “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.”

According to the Congressional Budget Office, interest payments on the national debt will permanently exceed defense spending. By 2050, interest costs are expected to double the size of the defense budget. Gross federal debt is projected to hit 123% of GDP by September 2025, surpassing the previous World War II-era high of 119%.

“Our national debt is not just a number," said the Hon. Joe Manchin, former Senator from West Virginia."It is a real and rising threat to our way of life. It impacts our economy, our national security, and our ability to respond in times of crisis. I am proud to see Representatives Cline and Golden take up the Fiscal Contingency Preparedness Act. This is a commonsense measure. Just like American families must prepare for emergencies, so should our government.” 

“Policymakers and the public need access to the best available analysis on how a severe economic shock may impact the federal government's finances," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "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 Representatives Cline and Golden for introducing this bipartisan, commonsense proposal to strengthen our fiscal resilience.”