H.R. 8135 — Cost-of-living Emergency Act

This section defines terms used in the Act, including (1) "average U.S. household" as a household earning less than the median household income for the prior year, per the Census Bureau; (2) "basic household necessities" as specified expenditures defined by the Bureau of Labor Statistics on January 1, 2026 (e.g., food at home, owned or rented dwellings, gasoline and fuels, medical services, utilities); (3) "co-chair," "Commission" (the Cost-of-Living Commission under sec. 8(a)(1)), "Council" (Council of Economic Advisers, 15 U.S.C. 1023), "large corporation" (any business other than a small business concern, 15 U.S.C. 632), "outside expert," "Special Advisor" (under sec. 4(3)(A)), and "State" (includes the District of Columbia, Puerto Rico, and territories).

This section declares a national emergency with respect to the high cost of living facing the people of the United States, which terminates 180 days after enactment unless extended by joint resolution. Such a joint resolution is considered under expedited procedures of the National Emergencies Act (i.e., committee referral within 15 calendar days, followed by floor vote within 3 calendar days).

This section directs the President, acting through the Chair of the Council of Economic Advisers (CEA), during a declared cost-of-living emergency, to require the CEA to (1) prioritize, in fulfilling its duties under 15 U.S.C. 1023(c), economic analysis and advice on the affordability of basic household necessities, economic pressures on low- and middle-income families, and distributional consequences of federal economic policy; (2) establish, within 7 days of enactment, a White House Cost Cutting Council within the CEA to coordinate government efforts to reduce costs of basic household necessities; (3) appoint, pursuant to CEA hiring authority under 15 U.S.C. 1023(b), six Special Advisors to the President (for grocery, housing, utility, health care, transportation, and wage costs) who each must lead a weekly task force of Cabinet members and other senior officials, issue weekly cost reports to executive leadership, host at least three regional public listening sessions per year with summary reports to Congress and the CEA, and testify annually to the Joint Economic Committee; and (4) submit quarterly State of Household Budgets reports to the President, a specified commission, and the Joint Economic Committee covering median household purchasing power, real wage growth net of housing and health costs, household debt-to-income burdens, regional affordability indexes, and basic household necessities inflation. (The CEA advises the President on economic policy and prepares the annual Economic Report of the President.)

This section requires the Administrator of the Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget (OMB) to direct agency heads to include a household budget impact statement in any major regulatory action (i.e., significant regulatory actions subject to OIRA review) submitted during the emergency declared under section 3. The statement must cover (1) estimated effects on the average U.S. household, (2) regional variations in household cost burdens, (3) estimated benefits to large corporations, and (4) an analysis of whether benefits accrue more to average U.S. households or large corporations. Agency heads must make such statements publicly available unless national security prohibits disclosure.

This section establishes the Joint Task Force on Consumer Costs, co-chaired by the Attorney General and Chair of the Federal Trade Commission (or designees) and composed of attorneys from DOJ's Antitrust Division and FTC's Bureaus of Competition and Consumer Protection as well as relevant economists and investigators, during the period an emergency declared under section 3 is in effect. The task force coordinates federal efforts to prevent and prosecute price gouging and anticompetitive practices by (1) monitoring retail and wholesale price increases for essential goods and services; (2) sharing information and evidence between DOJ and FTC; (3) investigating cost-inflating business practices; (4) initiating joint investigations into price gouging, price-fixing, and price discrimination; (5) providing guidance to state attorneys general; and (6) establishing a public reporting portal for consumers and whistleblowers. In addition, the task force utilizes DOJ and FTC enforcement authorities under the Federal Trade Commission Act, Sherman Act, Clayton Act, and other relevant statutes; enables non-reimbursable personnel details and protected resource sharing; requires reports on activities and enforcement actions to specified congressional committees not later than 60 days after establishment and every 90 days thereafter; terminates 30 days after the emergency ends; and permits continuation of any ongoing investigations or actions post-termination.

This section requires the President, during an emergency declared under section 3, to use authorities under title III of the Defense Production Act of 1950 (DPA; 50 U.S.C. 4531 et seq.)—which authorizes loans, loan guarantees, purchase commitments, and subsidies to expand domestic productive capacity—to increase the supply of basic household necessities, without regard to DPA's national defense requirement. It defines covered agency head as the head of any agency delegated DPA §101 authorities (50 U.S.C. 4511) under Executive Order 13603. The section further directs each covered agency head to (1) develop, within 15 days of enactment, a strategic plan for expending funds from the DPA Fund (50 U.S.C. 4534) to increase the domestic supply of basic household necessities; (2) continuously assess the domestic industrial base to identify supply chain bottlenecks contributing to price volatility in such necessities; and (3) certify, prior to any contract, loan, or purchase commitment, that the activity is supported by empirical data and will reduce the retail or wholesale cost of a specific basic household necessity within 180 days. Authorized actions include (1) issuing loan guarantees and loans under DPA §§301 and 302 (50 U.S.C. 4531, 4532) to small- and medium-sized businesses to modernize facilities producing basic household necessities; (2) executing purchase commitments under DPA §303 (50 U.S.C. 4533) to provide such necessities at consistent prices; and (3) providing subsidy payments under DPA §303(c) (50 U.S.C. 4533(c)) to offset costs of essential domestic raw materials.

This section establishes a 12-member Cost-of-Living Commission in Congress, to be appointed within 14 days of enactment by the Senate majority leader (2 Senators and 1 outside expert), Senate minority leader (2 Senators and 1 outside expert), House Speaker (2 Representatives and 1 outside expert), and House minority leader (2 Representatives and 1 outside expert), with due consideration to chairs and ranking members of relevant committees. The Commission must identify policies to reduce cost-of-living pressures on average U.S. households in the short and medium term (including by addressing cost drivers in specified sectors) and to promote long-term economic growth with stable costs; receive recommendations from congressional committees within 60 days of enactment; and issue an optional interim report. Not later than 180 days after enactment, the Commission must approve (by majority vote including at least 2 Republican- and 2 Democrat-appointed members) and publicly release a report with findings, recommendations, and legislative language (including economic and budgetary effects estimated by the Congressional Budget Office), which if approved is submitted to congressional leaders, the Vice President, and the President within 3 days; the Commission must also issue a similar report and language not later than 30 days before the cost-of-living emergency under section 3 terminates, assessing whether emergency actions should be made permanent. Deadlines may be extended by similar majority vote, with provisions for additional or minority views and prompt public disclosure of all reports, votes, and language.