Informed Lawmaking to Combat Inflation Act

Informed Lawmaking to Combat Inflation Act

This bill requires the Congressional Budget Office to provide inflation estimates for certain legislation that provides for direct spending and is projected to cause an annual gross budgetary effect of at least 0.25% of the projected gross domestic product of the United States.

The estimates must determine whether the legislation 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 legislation that (1) provides for emergency assistance or relief at the request of any state, local, or tribal government; or (2) is necessary for the national security or the ratification or implementation of international treaty obligations.

Bill 118 hr 3640, also known as the Informed Lawmaking to Combat Inflation Act, aims to address the issue of inflation in the United States through a more informed and data-driven approach to lawmaking. The bill requires that any proposed legislation that could potentially impact inflation be accompanied by a detailed analysis of its potential effects on prices, wages, and overall economic stability.

The bill mandates that this analysis be conducted by the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT), who will provide lawmakers with a comprehensive report outlining the potential economic consequences of the proposed legislation. This report must be made available to the public before any vote is taken on the bill.

Additionally, the bill establishes a new Congressional Inflation Oversight Committee, which will be responsible for monitoring inflation trends and providing recommendations to Congress on how to address any potential spikes in prices. This committee will also work closely with the Federal Reserve to ensure that monetary policy is aligned with efforts to combat inflation. Overall, the Informed Lawmaking to Combat Inflation Act seeks to promote transparency and accountability in the legislative process, with the goal of making more informed decisions that will help mitigate the impact of inflation on the American economy.