Federal

Reduce Exacerbated Inflation Negatively Impacting the Nation Act

Source: Congress.gov · 996 words in original text

What This Bill Does

This bill requires the President to prepare inflation estimates before issuing major executive orders. The President must evaluate whether each order would significantly affect inflation and report these findings to Congress and the public. The bill aims to account for how executive orders impact the cost of living for Americans.

Who It Affects

The President and the White House Office of Management and Budget; the Council of Economic Advisers; all federal agencies; Congress; and the general public through public reporting.

Key Provisions

• The President must prepare an inflation estimate for any major executive order, stating whether the order has no significant inflation impact, has a measurable impact on consumer or producer prices, or likely has significant impact but the amount cannot be determined (Sec. 2(a)(1)). • If an executive order affects consumer prices measurably, the estimate must break down the impact by Food, Energy, and All Items Less Food and Energy categories (Sec. 2(a)(2)). • The estimate must include the inflation effects of debt servicing costs (the cost to borrow money) related to the executive order (Sec. 2(a)(1)). • The estimate should consider spending patterns of military personnel and residents of rural areas and farm households when practicable (Sec. 2(a)(1)). • Federal agencies must provide information and assistance requested by the President to complete these inflation estimates (Sec. 2(b)). • The President must publish all inflation estimates annually on the Office of Management and Budget website and submit them to four Congressional committees (Sec. 2(c)).

What Changes

If this becomes law, the President would need to analyze and document the inflation effects of major executive orders before issuing them. These analyses would become public documents and be reported to Congress annually. This is a new requirement that does not currently exist.

Important Definitions

• "Major Executive Order" means any executive order projected to cause an annual economic effect of at least $1,000,000. This excludes emergency assistance ordered by state or local governments and orders needed for national security or international treaties (Sec. 2(e)(2)). • "Agency" means any organization defined by federal law (Sec. 2(e)(1)). • "State" includes all U.S. states, Washington D.C., U.S. territories, and federally recognized Indian tribes (Sec. 2(e)(3)).

II 118TH CONGRESS 1ST SESSION S. 715 To require the Executive Office of the President to provide an inflation estimate with respect to Executive orders with a significant effect on the annual gross budget, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 8, 2023 Mr. BRAUN (for himself and Mr. SCOTT of Florida) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To require the Executive Office of the President to provide an inflation estimate with respect to Executive orders with a significant effect on the annual gross budget, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Reduce Exacerbated 4 Inflation Negatively Impacting the Nation Act’’. 5 SEC. 2. EXECUTIVE ORDER MANDATED INFLATION AC- 6 COUNTABILITY AND REFORM. 7 (a) MANDATORY INFLATION FORECASTING.— 8 VerDate Sep 11 2014 04:17 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S715.IS S715 kjohnson on DSK79L0C42PROD with BILLS 2 •S 715 IS (1) IN GENERAL.—For any major Executive 1 order, the President, acting through the Director of 2 the Office of Management and Budget and the Chair 3 of the Council of Economic Advisers, shall prepare 4 and consider a statement estimating the inflationary 5 effects of the Executive order, including whether the 6 Executive order is determined to have no significant 7 impact on inflation, is determined to have quantifi- 8 able inflationary impact on the consumer or pro- 9 ducer price index (including a detailed description of 10 such impact), or is determined likely to have a sig- 11 nificant impact on inflation but the amount cannot 12 be determined at the time the estimate is prepared. 13 Any statement prepared under this paragraph shall 14 incorporate the inflationary impact of the debt serv- 15 icing costs associated with the applicable major Ex- 16 ecutive order. To the greatest extent practicable, any 17 estimate of the inflationary impact of any major Ex- 18 ecutive order under this paragraph shall take into 19 account the spending patterns of military personnel 20 and of residents of non-metropolitan areas, including 21 rural areas and farm households. 22 (2) CPI IMPACT DISAGGREGATED.—If an Exec- 23 utive order is determined to have a quantifiable in- 24 flationary impact on the consumer price index under 25 VerDate Sep 11 2014 04:17 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S715.IS S715 kjohnson on DSK79L0C42PROD with BILLS 3 •S 715 IS paragraph (1), the statement required by such para- 1 graph shall include the amount of such impact on 2 the consumer price index in total and disaggregated 3 by the Food, Energy, and All Items Less Food and 4 Energy categories of the consumer price index (as 5 such categories are determined by the Secretary of 6 Labor in consultation with the Commissioner of the 7 Bureau of Labor Statistics). 8 (b) AGENCY ASSISTANCE.—The head of each agency 9 shall provide to the President, acting through the Director 10 and the Chair, such information and assistance as the 11 President, acting through the Director and the Chair, may 12 reasonably request to assist the President, acting through 13 the Director and the Chair, in carrying out this section. 14 (c) REPORTING.—Not later than 180 days after the 15 date of the enactment of this Act, and every year there- 16 after, the President, acting through the Director and the 17 Chair, shall publish on the public website of the Office 18 of Management and Budget and submit to the Committee 19 on the Budget and the Committee on Homeland Security 20 and Governmental Affairs of the Senate and the Com- 21 mittee on the Budget and the Committee on Oversight and 22 Accountability of the House of Representatives a report 23 containing each statement prepared and considered under 24 subsection (a) during the year. 25 VerDate Sep 11 2014 04:17 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S715.IS S715 kjohnson on DSK79L0C42PROD with BILLS 4 •S 715 IS (d) RULE OF CONSTRUCTION.—Nothing in this sec- 1 tion shall be construed to suggest that the task of com- 2 bating inflation and bringing down the cost of living is 3 the sole responsibility of the Executive Office of the Presi- 4 dent, and not also a key pursuit of the Senate during the 5 118th Congress through thoughtful, productive legislative 6 action. 7 (e) DEFINITIONS.—In this section: 8 (1) AGENCY.—The term ‘‘agency’’ has the 9 meaning given such term in section 551 of title 5, 10 United States Code. 11 (2) MAJOR EXECUTIVE ORDER.—The term 12 ‘‘major Executive order’’ means any Executive order 13 that would be projected (in a conventional cost esti- 14 mate) to cause an annual gross budgetary or eco- 15 nomic effect of at least $1,000,000, but does not in- 16 clude any such measure that— 17 (A) provides for emergency assistance or 18 relief at the request of any State or local gov- 19 ernment or any official of a State or local gov- 20 ernment; or 21 (B) is necessary for the national security 22 or the ratification or implementation of inter- 23 national treaty obligations. 24 VerDate Sep 11 2014 04:17 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S715.IS S715 kjohnson on DSK79L0C42PROD with BILLS 5 •S 715 IS (3) STATE.—The term ‘‘State’’ means each 1 State of the United States, the District of Columbia, 2 each commonwealth, territory, or possession of the 3 United States, and each federally recognized Indian 4 Tribe. 5 Æ VerDate Sep 11 2014 04:17 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S715.IS S715 kjohnson on DSK79L0C42PROD with BILLS

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