If enacted, HB 3640 will substantially alter how budget-related legislation is handled in Congress. By instituting a requirement for inflation assessments, the bill aims to ensure lawmakers are more informed about the economic consequences of the bills they are debating. This could lead to more fiscally responsible governance, potentially curbing inflationary pressures from new spending measures. The bill's introduction reflects a growing recognition of the need for improved accountability in federal financial legislation amidst ongoing concerns about inflation's impact on everyday Americans.
Summary
House Bill 3640, titled the 'Informed Lawmaking to Combat Inflation Act', is designed to amend the Congressional Budget and Impoundment Control Act of 1974. This bill mandates the Congressional Budget Office (CBO) to provide inflation estimates for direct spending legislation that significantly impacts the U.S. Gross Domestic Product (GDP). Major legislation—defined as any bill influencing the budget by at least 0.25% of projected GDP—will require thorough inflation forecasting from the CBO before it can be considered for a vote. This includes stipulations for both original bills and amended forms.
Contention
Notable points of contention surrounding HB 3640 involve debates over the practicality and effectiveness of mandatory inflation forecasting. Critics may argue that the requirement could slow down the legislative process, hindering timely responses to urgent economic needs. Proponents, however, assert that this oversight is necessary to avoid legislation that could exacerbate inflation. Furthermore, the definitions surrounding 'major legislation' may be contested, particularly about what qualifies for such scrutiny, potentially leading to political conflicts over the classification of spending bills.
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.
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.
Article I Regulatory Budget Act This bill requires the establishment of a federal regulatory budget to limit the costs of federal regulations. It also establishes requirements for disclosing the projected costs of federal regulations and procedures for enforcing the regulatory budget.