Overview
Title
To require the Secretary of the Treasury to issue reports with respect to extraordinary measures, and for other purposes.
ELI5 AI
H.R. 737 wants to make sure the government tells everyone when it does special money tricks to prevent running out of cash. It asks for the government to share how it’s handling money problems when bills pile up, like giving updates before, during, and after these money tricks.
Summary AI
H. R. 737, also known as the "Extraordinary Measures Transparency Act," is a proposed law that would require the Secretary of the Treasury to report to Congress about extraordinary financial measures taken when the national debt limit is near. The bill mandates reports 30 days before reaching the debt limit, daily updates during the use of extraordinary measures, and a summary report afterward. These reports would cover details like the measures used, their costs, and their impact on federal funding. The goal is to ensure transparency about the government's financial actions during these critical times.
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AnalysisAI
The bill titled the "Extraordinary Measures Transparency Act" proposes new requirements for the Department of the Treasury regarding the use of "extraordinary measures" when the U.S. government nears its debt limit. These measures are financial maneuvers that help the government continue to pay its obligations when it has reached its borrowing limit, temporarily preventing default. The bill mandates the Secretary of the Treasury to issue public reports 30 days before reaching the debt limit, daily during the use of these measures, and once these measures have concluded. It also outlines definitions related to these actions, such as "extraordinary measures" and "administrative cost."
General Summary of the Bill
The primary aim of the bill is to enhance transparency regarding how the Department of the Treasury manages the nation's finances when its borrowing authority approaches exhaustion. By stipulating the need for various reports, the bill seeks to ensure that Congress is well-informed about the extraordinary measures being deployed, their costs, and the anticipated duration of their efficacy.
Significant Issues
One significant issue with the bill lies in the broad discretion it affords the Secretary of the Treasury. The language permits the Secretary to determine what measures and costs are appropriate without predefined guidelines, which can lead to potential misuse of power or opacity in decision-making processes. Additionally, the requirement for a daily report during the implementation of these measures could pose a substantial administrative burden and possibly increase operational costs. A lack of a specified timeline for submitting a final report after using these measures could also hinder congressional oversight and delay transparency.
Implications for the Public
The public might see this bill as a step towards greater accountability and insight into how the government manages financial emergencies. By mandating regular and detailed reporting, citizens can gain a clearer understanding of the fiscal strategies employed during critical periods. However, the technical language and detailed financial specifics might limit broader public engagement or comprehension, potentially keeping these processes opaque for individuals without a financial background.
Impact on Stakeholders
Government Officials: The bill would impose additional reporting duties on the Treasury Department, which might increase administrative workload and costs. This could necessitate a reallocation of resources or an increase in staffing to fulfill the bill's requirements.
Congress: Lawmakers stand to benefit from the enhanced accessibility to information, enabling more informed decisions concerning the nation's debt and financial strategies. However, the lack of clear guidelines for the Secretary's actions might complicate legislative oversight.
Financial Markets: Improved transparency can foster a more stable financial environment by reassuring investors that there are systematic procedures in place to avoid debt default.
In conclusion, while the "Extraordinary Measures Transparency Act" seeks to improve transparency, its broader provisions and technical nature highlight areas where clarity and stricter guidelines could strengthen its effectiveness and prevent unintended consequences.
Issues
The definition of 'extraordinary measures' in Section 3131 includes a broad provision in subsection (3)(G) that allows for 'such other measures as the Secretary determines appropriate.' This provision could give the Secretary of the Treasury excessively broad discretion without clear guidelines or boundaries, leading to potential misuse of power or lack of transparency.
The term 'administrative cost' in Section 3131(d)(1) includes 'such other costs as the Secretary determines appropriate.' This language may result in ambiguity and lack of transparency concerning the accounting for these costs, as it may allow the Secretary to determine and categorize costs at their discretion without additional oversight.
The requirement for a daily report during the use of extraordinary measures as stated in Section 3131(b) may impose a significant administrative burden on the Department of the Treasury, potentially leading to increased administrative costs and inefficiencies in reporting.
There is no specific timeline provided for when the post-use report described in Section 3131(c) must be delivered to Congress. The absence of a stipulated deadline could delay Congressional oversight and thus reduce accountability and transparency after the use of extraordinary measures.
The language in Section 3131 is highly technical and may be overly complex for general public understanding, particularly due to the specific financial terminology and references to particular funds and investments. This complexity could hinder broader public engagement and understanding of the implications of the bill.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act specifies its short title, which is the "Extraordinary Measures Transparency Act".
2. Reports on extraordinary measures Read Opens in new tab
Summary AI
The section requires the Secretary of the Treasury to provide various reports to Congress whenever the public debt is close to reaching its limit. These reports include details on the extraordinary measures that will be used to avoid hitting the limit, their costs, and updates during and after using these measures. It also clarifies what counts as extraordinary measures and defines relevant terms like "debt limit" and "administrative cost."
3131. Reports on extraordinary measures Read Opens in new tab
Summary AI
The text outlines Section 3131 of a bill, which requires the Secretary of the Treasury to issue a series of reports regarding "extraordinary measures" taken to manage the public debt when the debt limit is near. These reports include forecasts and summaries of these measures, their costs, and their impact on government operations. The section also defines key terms, such as "administrative cost," "debt limit," "extraordinary measures," and "Secretary."