Bill Summary
The Inflation Prevention Act is a bill that aims to prevent excessive government spending that could lead to a higher level of inflation. It creates a point of order that can be raised by Senators or Representatives to block any legislation that would result in an increase in the Consumer Price Index (CPI) of more than 4.5%. The CPI is a measure of the average change in prices of goods and services over time, and a higher CPI indicates a higher level of inflation. This bill also requires the Congressional Budget Office (CBO) to provide estimates of the potential impact on the CPI for any proposed legislation. If the CPI exceeds 4.5%, the CBO is required to notify Congress. This act also allows for a waiver or suspension of the point of order with a three-fifths majority vote in either the Senate or the House of Representatives.
Possible Impacts
1. People who rely on government programs and services that require new budget authority may be affected if the annualized rate of inflation is greater than 4.5 percent. This could result in cuts to these programs or inadequate funding, which could negatively impact their lives.
2. Lawmakers and government officials may be affected by the legislation, as they will need to carefully consider the potential impact on inflation when creating and passing new bills, joint resolutions, motions, amendments, or conference reports that provide new budget authority.
3. Economists and analysts who monitor inflation rates may be impacted by the legislation, as they may need to adjust their methods for calculating the Consumer Price Index for All Urban Consumers and provide estimates to Congress upon request.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6485 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 6485
To create a point of order against spending that will increase
inflation unless inflation is not greater than 4.5 percent, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 25, 2022
Mr. Garcia of California (for himself, Mr. Rodney Davis of Illinois,
Mr. Palazzo, Mr. Grothman, Mr. LaTurner, Mrs. Steel, Ms. Mace, Mrs. Kim
of California, Mr. Moore of Alabama, Mr. McKinley, Mr. Timmons, Mr.
Huizenga, Mr. Valadao, Mr. Mooney, Mr. Walberg, Mrs. Harshbarger, and
Mr. Newhouse) introduced the following bill; which was referred to the
Committee on Rules, and in addition to the Committee on the Budget, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To create a point of order against spending that will increase
inflation unless inflation is not greater than 4.5 percent, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Inflation Prevention Act''.
SEC. 2. POINT OF ORDER AGAINST SPENDING THAT WILL INCREASE INFLATION
UNTIL INFLATION IS NOT GREATER THAN 4.5 PERCENT.
(a) Point of Order in the Senate.--
(1) In general.--In the Senate, it shall not be in order to
consider a provision in a bill, joint resolution, motion,
amendment, amendment between the Houses, or conference report
that provides new budget authority and that is estimated to
result in an increase in the Consumer Price Index for All Urban
Consumers, as published by the Bureau of Labor Statistics,
unless the annualized rate of increase in the Consumer Price
Index for All Urban Consumers most recently published by the
Bureau of Labor Statistics is not more than 4.5 percent.
(2) Point of order sustained.--If a point of order is made
by a Senator against a provision described in paragraph (1),
and the point of order is sustained by the Chair, that
provision shall be stricken from the measure and may not be
offered as an amendment from the floor.
(3) Form of the point of order.--A point of order under
subsection (a)(1) may be raised by a Senator as provided in
section 313(e) of the Congressional Budget Act of 1974 (2
U.S.C. 644(e)).
(4) Conference reports.--When the Senate is considering a
conference report on, or an amendment between the Houses in
relation to, a bill or joint resolution, upon a point of order
being made by any Senator pursuant to subsection (a)(1), and
such point of order being sustained, such material contained in
such conference report or House amendment shall be stricken,
and the Senate shall proceed to consider the question of
whether the Senate shall recede from its amendment and concur
with a further amendment, or concur in the House amendment with
a further amendment, as the case may be, which further
amendment shall consist of only that portion of the conference
report or House amendment, as the case may be, not so stricken.
Any such motion in the Senate shall be debatable. In any case
in which such point of order is sustained against a conference
report (or Senate amendment derived from such conference report
by operation of this paragraph), no further amendment shall be
in order.
(5) Supermajority waiver and appeal.--In the Senate, this
subsection may be waived or suspended only by an affirmative
vote of three-fifths of the Members, duly chose and sworn. An
affirmative vote of three-fifths of Members of the Senate, duly
chosen and sworn shall be required to sustain an appeal of the
ruling of the Chair on a point of order raised under this
subsection.
(b) Point of Order in the House of Representatives.--In the House
of Representatives, it shall not be in order to consider a bill, joint
resolution, motion, amendment, amendment between the Houses, or
conference report that provides new budget authority and that is
estimated to result in an increase in the Consumer Price Index for All
Urban Consumers, as published by the Bureau of Labor Statistics, unless
the annualized rate of increase in the Consumer Price Index for All
Urban Consumers most recently published by the Bureau of Labor
Statistics is not more than 4.5 percent.
(c) Determination of Effect on Inflation.--
(1) Provision of estimates.--Upon request by a Member of
Congress, the Congressional Budget Office shall prepare an
estimate of the effect on the Consumer Price Index for All
Urban Consumers of the provisions in a bill, joint resolution,
motion, amendment, amendment between the Houses, or conference
report that provide new budget authority.
(2) In general.--The estimated amount of the increase in
the Consumer Price Index for All Urban Consumers, if any, for
purposes of this section shall be determined based on estimates
prepared by the Congressional Budget Office.
SEC. 3. CBO NOTIFICATION TO CONGRESS.
(a) In General.--The Congressional Budget Office shall notify
Congress if the annualized rate of increase in the Consumer Price Index
for All Urban Consumers is greater than 4.5 percent.
(b) Submission.--The Congressional Budget Office may submit the
certification required under subsection (a) as part of another report
required to be submitted to Congress.
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