Bipartisan Momentum Builds for the Fiscal Contingency Preparedness Act

The Fiscal Contingency Preparedness Act (FCPA), introduced last year by Representatives Ben Cline (R-VA) and Jared Golden (D-ME) in the House as well as Senators Mark Warner (D-VA) and Todd Young (R-IN) in the Senate, has seen growing support. 

Designed to provide lawmakers with forward-looking fiscal analysis, the bill would require the Treasury Department and the Office of Management and Budget to conduct annual assessments of the government's fiscal resilience in the face of potential domestic or international emergencies. These “fiscal stress tests” would evaluate the federal government’s ability to respond to shocks such as economic downturns, public health emergencies, and national security threats. After these reports are released, the Government Accountability Office would conduct an independent review and publish its findings for Congress. You can find more information on the proposal here. 

The importance of this type of advance preparation is underscored in our recent paper, “What Would a Fiscal Crisis Look Like?”, which outlines several ways that a fiscal crisis could manifest. Policymakers should prepare well in advance for the next economic shock or potential economic crisis; our “Break Glass Plan” outlines a potential path forward, and we’ll be releasing more details on the plan in the coming weeks.  

A growing group of bipartisan lawmakers, former elected officials, and fiscal policy experts have voiced support for the Fiscal Contingency Preparedness Act. The following statements highlight why regular fiscal stress tests would help policymakers identify vulnerabilities, manage risk, and improve overall fiscal resiliency. 

Below are some of those who have spoken in support of the FCPA. 

Representative Ben Cline (R-VA): “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.” 

Representative Jared Golden (D-ME): “One of the many lessons the Marine Corps taught me was to have a plan for worst-case scenario. 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.” 

Representative Jack Bergman (R-MI): “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. 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."  

Representative Marie Gluesenkamp Perez (D-WA): “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,” “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.” 

Senator Mark Warner (D-VA): “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.” 

Senator Todd Young (R-IN): “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,”  

Joe Manchin, former West Virginia senator: “Our national debt is not just a number, 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.”   

Mitt Romney, former Utah senator: “With the national debt over $36 trillion, America is on a collision course with fiscal disaster. A major event – such as a recession, conflict, or energy crisis – could quickly worsen the situation and endanger the U.S. economy. Understanding how the federal government can respond to unexpected shocks is key to strengthening our national resilience. I commend Senators Warner and Young for their leadership on this important issue to help safeguard our nation’s financial stability. Taking responsible steps now will help ensure a stronger, more stable future for all Americans.” 

Maya MacGuineas, Committee for a Responsible Federal Budget: “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 Representatives Cline and Golden for introducing this bipartisan, commonsense proposal to strengthen our fiscal resilience.” 

Michele Stockwell, Bipartisan Policy Center Action: “The burden of the national debt has already made life less affordable for everyday Americans, but the debt’s harm could still increase substantially. As the Fiscal Contingency Preparedness Act correctly observes, an external event could spark a fiscal crisis, and our country must examine the dynamics of such a crisis so we can prevent one while we still can. BPC Action applauds Representatives Cline and Golden for introducing this legislation and calls on Congress to enact it.” 

Brett Loper, Peterson Solutions Fund: “As our national debt soars beyond $37 trillion, we need proactive measures and informed decision-making to help prepare for unforeseen, but inevitable, future emergencies. The Fiscal Contingency Preparedness Act is commonsense bipartisan legislation, designed to equip policymakers with essential data for when our country’s already stressed finances face unexpected crises such as recessions, natural disasters or national security threats.” 

William Glass, Millennial Debt Foundation: “For the last three years, Millennial Debt Foundation has warned state leaders that federal funding should be treated with suspicion and that they should prepare contingency plans for federal funding shocks. These warnings attempt to ease the chaos caused by Washington’s refusal to live within its means. So we are grateful to endorse a bill requiring the federal government to exercise at least some attempt at foresight. Contingency planning alone is not enough, especially if the plan is more unaccountable deficit growth, but a lot of good may come from forcing the Treasury to anticipate the likely consequences of federal inaction. We thank Representatives Cline, Golden, Bergman, and Gluesenkamp Perez, along with Senators Young and Warner, for their leadership, and we congratulate them on their care in doing the people’s business.”  

Dominik Lett, Cato Institute: "Congressional responses to national emergencies—such as the Great Recession and COVID-19 pandemic—have placed a significant strain on our nation's finances, driving up deficits and the debt. The Fiscal Contingency Preparedness Act would help lawmakers and the public understand the budgetary risks posed by future crises, whether from a recession, pandemic, or conflict. America cannot afford to be surprised by the fiscal consequences of the next shock." 

William McBride, Tax Foundation: “With the federal government’s debt burden approaching record levels, it is sensible to require an annual stress test of the federal budget to prepare for the inevitable economic downturn or other unforeseen crises. History has shown these fiscal shocks can result in deficits and interest on the debt, a precarious outcome that lawmakers should be fully informed about based on the most advanced methods available.”  

Kurt Couchman, Americans for Prosperity: “To counter risks to the republic, Congress must know what they are. The Fiscal Contingency Preparedness Act by Senators Young and Warner and Representatives Cline, Golden, and colleagues would have the budget agencies ‘stress-test’ the federal government’s finances every year. This information would be even more useful in the context of an effective, comprehensive budget that gives Congress the tools to address threats and other challenges facing the American People.” 

Demian Brady, National Taxpayers Union Foundation: “The bipartisan Fiscal Contingency Preparedness Act would require the Treasury Department, in coordination with the Office of Management and Budget, to assess the federal government’s ability to respond to future fiscal shocks—including geopolitical conflicts, economic downturns, and natural disasters. The goal is to identify gaps and develop strategies to improve the government’s capacity to manage emergencies. This review would complement regular findings from the Congressional Budget Office warning that high deficits constrain lawmakers’ ability to respond effectively when the next crisis hits. By shedding light on these fiscal vulnerabilities, the analysis would help inform policymakers about the risks posed by the $37 trillion federal debt and prompt serious action to rein in wasteful unneeded programs.” 

Paul Winfree, Economic Policy Innovation Center: “Fiscal space is the room the government has for borrowing without undermining debt sustainability or risking a loss of market confidence. Maintaining sufficient fiscal space is important to allow lawmakers to respond to unforeseen events such as war, natural disasters, or recessions. The Fiscal Contingency Preparedness Act, introduced by Reps. Ben Cline (R-VA) and Jared Golden (D-ME), would require the U.S. Department of the Treasury to stress test the government’s fiscal capacity to respond to these types of crisis events. This important proposal would help policymakers understand the limits of America’s fiscal space and make better budgetary decisions.” 

Carolyn Bourdeaux, Concord Action: “Fiscal resilience isn’t a luxury—it’s a necessity. The Fiscal Contingency Preparedness Act is a vital step toward restoring public trust and ensuring that our government can respond effectively when the next crisis hits. This bipartisan legislation brings much-needed transparency and accountability to our fiscal outlook and helps lay the groundwork for responsible, forward-looking decision-making.” 

Nan Swift, R Street Institute: “The R Street Institute is pleased to support the bipartisan “Fiscal Contingency Preparedness Act.” Consistent, transparent consideration of potentially costly, economically disruptive crises is an essential element of responsible and sustainable financial planning. Unoffset emergency spending in response to events such as natural disasters, global conflicts, or the COVID-19 pandemic has become a major contributor to our worsening debt and gloomy fiscal outlook. Conducting regular stress tests–a common practice in the private sector–will help decision-makers be better prepared against future calamities and provide insight into the changes needed to protect our well-being. Though we can’t predict the precise nature or timing of the next fiscal shock, we can know with certainty that challenges will come. It’s essential that lawmakers take steps now to increase our economic resilience.”