The Congressional Budget Office (CBO) would have to provide inflation estimates for any bills introduced by Congress under a bipartisan bill offered by U.S. Sen. Thom Tillis (R-NC).
“Congress must take into account the economic realities of inflation when considering any new legislation,” Sen. Tillis said. “This legislation requires the CBO to provide estimates for how certain legislation will impact inflation, giving lawmakers a clearer understanding of how their policy decisions will impact constituents.”
Specifically, the Informed Lawmaking to Combat Inflation Act, S. 3895, which Sen. Tillis cosponsored on March 7 alongside bill sponsor U.S. Sen. Joe Manchin (D-WV), would require the CBO to provide an inflation estimate regarding legislation with a significant impact on the gross domestic product of the United States, according to the text of the bill.
Currently, the CBO is responsible for issuing estimates for how legislation being considered by Congress would impact direct spending, revenues, and the federal deficit, but is not required to measure the inflationary impacts of bills.
If enacted, S. 3895 would apply to any “major legislation,” meaning any bill, joint resolution, amendment, or conference report that would be projected to cause an annual gross budgetary effect of at least 0.25 percent of the projected U.S. gross domestic product. This would not include a measure that provides for emergency assistance or relief at the request of any state, local, or tribal government, or is necessary for national security or the ratification or implementation of international treaty obligations, the text says.
S. 3895 has been referred for consideration to the U.S. Senate Budget Committee.