Reduce Exacerbated Inflation Negatively Impacting the Nation Act
Impact
By instituting such a requirement, SB715 aims to provide lawmakers and the public with clearer insights into how executive actions might contribute to inflation. This move is especially relevant in a time of economic uncertainty, where inflation directly affects the cost of living for citizens. The bill intends to compile annual reports on these estimates, promoting a standard practice across the government that could influence future executive actions and foster greater fiscal responsibility.
Summary
SB715, titled the 'Reduce Exacerbated Inflation Negatively Impacting the Nation Act', seeks to enhance the accountability of the Executive Office of the President concerning the inflationary effects of major executive orders. The bill mandates that for any major executive order likely to affect the annual gross budget by a significant amount, the President must prepare a statement estimating its inflationary impacts. This includes a detailed analysis of how the order may affect the consumer and producer price indexes, ensuring that the inflationary consequences are transparent and considered prior to issuance.
Contention
However, the bill is not without contention. Critics argue that requiring inflation estimates may place an undue burden on the Executive Office, potentially slowing down the process of implementing necessary executive actions, especially in times of urgent need. Additionally, there are concerns regarding the potential politicization of the economic data used in these estimates, as each administration may interpret the data to suit its narrative or policy goals. The balance between necessary transparency and effective governance will be a noteworthy point of discussion as the bill progresses.
Related
Reduce Exacerbated Inflation Negatively Impacting the Nation Act This bill requires the Office of Management and Budget and the Council of Economic Advisers to provide an inflation estimate for each executive order that is projected to cause an annual gross budgetary effect of at least $1 billion. The estimate must determine whether the executive order will have no significant impact on inflation, a quantifiable inflationary impact on the Consumer Price Index, or a significant impact on inflation that cannot be quantified at the time the estimate is prepared. The requirement does not apply to executive orders that (1) provide for emergency assistance or relief at the request of any state or local government or an official of the government, or (2) are necessary for national security or the ratification or implementation of international treaty obligations.
Reduce Exacerbated Inflation Negatively Impacting the Nation Act This bill requires the Office of Management and Budget and the Council of Economic Advisers to provide an inflation estimate for each executive order that is projected to cause an annual gross budgetary effect of at least $1 billion. The estimate must determine whether the executive order will have no significant impact on inflation, a quantifiable inflationary impact on the Consumer Price Index, or a significant impact on inflation that cannot be quantified at the time the estimate is prepared. The requirement does not apply to executive orders that (1) provide for emergency assistance or relief at the request of any state or local government or an official of the government, or (2) are necessary for national security or the ratification or implementation of international treaty obligations.
Stop Inflationary Spending Act This bill requires the Congressional Budget Office (CBO) to provide inflation projections for bills that Congress considers using the budget reconciliation process. Specifically, the CBO must estimate the impact on inflation that will occur from implementing each reconciliation bill, including the impact on inflation that will occur during each of the first five years after the enactment of the bill.
Inflation Prevention Act of 2023 This bill establishes a point of order that, when the annualized rate of inflation exceeds 4.5%, prohibits the House and Senate from considering legislation that provides new budget authority and is estimated to increase the Consumer Price Index for All Urban Consumers. The prohibition may be waived in the Senate by an affirmative vote of three-fifths of the Senate.