Fiscal Contingency Preparedness Act

This legislation, titled the Fiscal Contingency Preparedness Act, mandates that the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget (OMB), conduct an annual examination of the Federal Government's capacity to respond to significant fiscal shocks. This examination will be integrated into an existing annual report and aims to assess the fiscal risks and impacts of such responses. The required examination must include an assessment of the fiscal risks and impacts of the Federal Government responding to a range of events, including economic recessions , domestic energy crises, catastrophic natural disasters, global pandemics, significant armed conflicts, cyber attacks, and financial crises. For each scenario, the Secretary and OMB Director must determine the estimated short-term and long-term fiscal effects on the Federal Government and describe significant economic indicators to convey these effects. The bill allows the Secretary of the Treasury and the OMB Director flexibility in determining the scope and magnitude of these events, including considering historical instances and responses. Furthermore, the Government Accountability Office (GAO) is required to review the methodology and results of this fiscal analysis and publish its findings, ensuring independent oversight of the examination's quality and thoroughness.