How HR 4642 changes current law

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill requires the Secretary of the Treasury to include an examination of fiscal risks and impacts of potential fiscal shocks in the annual financial report.

• 31 U.S.C. § 331(e)

  (3)(A) As a component of the report required under paragraph (1), the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, shall examine the fiscal risks and fiscal impacts of the response of the Federal Government to potential national and international fiscal shocks.

  This adds a new requirement for the Secretary to analyze fiscal risks related to possible national and international crises.

• 31 U.S.C. § 331(e)

  (B) In making the examination required under subparagraph (A), the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, shall--

  This specifies that the examination of fiscal shocks must include coordination with the Office of Management and Budget.

• 31 U.S.C. § 331(e)

  (i) include an assessment of the fiscal risks and fiscal impacts of the Federal Government responding to events, such as--

  This establishes detailed events that the Secretary must consider in the examination.

• 31 U.S.C. § 331(e)

  (II) a domestic energy crisis;

  This includes a domestic energy crisis as a potential fiscal shock for analysis.

• 31 U.S.C. § 331(e)

  (III) a catastrophic natural disaster;

  This recognizes catastrophic natural disasters as significant events to be examined for their fiscal impact.

• 31 U.S.C. § 331(e)

  (IV) a health crisis, such as a global pandemic;

  This includes health crises, such as global pandemics, as relevant fiscal shock events.

• 31 U.S.C. § 331(e)

  (V) a significant armed conflict or event;

  This acknowledges armed conflicts as important scenarios to consider in fiscal risk assessments.

• 31 U.S.C. § 331(e)

  (VI) a significant cyber attack; and

  This includes cyber attacks as critical events affecting fiscal stability.

• 31 U.S.C. § 331(e)

  (VII) a financial crisis;

  This identifies financial crises as crucial events for fiscal impact evaluation.

• 31 U.S.C. § 331(e)

  (ii) determine the estimated short-term and long-term fiscal effects on the Federal Government in the case of an event described in clause (i);

  This requires the Secretary to evaluate both short-term and long-term fiscal effects.

• 31 U.S.C. § 331(e)

  (iii) describe significant economic impacts and indicators selected by the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, to convey the short-term and long-term fiscal effects on the Federal Government in the case of an event described in clause (i) in the method that best accomplishes the goal of the examination.

  This mandates that the Secretary must effectively communicate the economic impacts of the examined crises.

• 31 U.S.C. § 331(e)

  (C) In making the examination required under subparagraph (A) and determining the scope and magnitude of an event described in subparagraph (B)(i), the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, may consider historical instances of those events and the response of the Federal Government to those historical instances.

  This allows consideration of historical responses to similar events in the analysis process.

• 31 U.S.C. § 331(e)

  (D) In including the examination required under subparagraph (A) in the report required under paragraph (1), the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, may structure and report the examination in the method that best accomplishes the goal of the examination.

  This gives flexibility in how the examination and its findings are reported.