The Year 2000 Computer Problem: Congressional Issues

Publication Date: April 1999

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Media, telecommunications, and information

Type:

Abstract:

Many computers were designed to store a two-digit number for the year, which makes the year 2000 indistinguishable from 1900. Unless they are corrected, many computers will not be able to process dates beyond the year 2000, and may cause many costly problems in commerce and government.

Although some may still doubt the seriousness of the year 2000 (Y2K) problem, most business managers and government officials are now convinced that it proving to be difficult and time-consuming to correct. Federal agencies have established year 2000 (Y2K) program offices, and an interagency committee has overseen several government-wide actions. State and local governments, private sector businesses, and foreign organizations also face the year 2000 problem for their computer systems.

Since 1996, many congressional hearings have helped raise awareness of the year 2000 problem in both government and the private sector. Several provisions were enacted in the 104th and 105th Congresses. In FY1998, funds were reprogrammed to perform year 2000 work, and supplemental appropriations were provided for year 2000 efforts at federal agencies. In the 105th Congress, the Defense Authorization Act (P.L. 105-261) directs the Defense Department on its year 2000 conversion program; P.L. 105-164 enables all financial regulatory agencies to examine year 2000 efforts of institutions they oversee; the Year 2000 Information and Readiness Disclosure Act (P.L. 105-271) encourages companies to disclose information on the year 2000 readiness of their products and services; and the Omnibus Appropriations Act (P.L. 105-277) includes $3.35 billion of emergency funds for year 2000 conversions of federal systems. Although Congress did not give federal agencies increased autonomy to reprogram appropriated funds, agencies may use the emergency appropriations, with White House approval, to supplement their year 2000 conversion programs.

In February 1998, the President established a Year 2000 Conversion Council and appointed a director for year 2000 conversion efforts in the federal government. The Council is working with federal agencies and private sector groups to address year 2000 problems at a national level.

In the 106th Congress, hearings are being held and will continue to provide the public with the most accurate information available on the status of Y2K remediations at federal agencies, state and local agencies, private sector entities, and international organizations. Congress may also consider additional legislation to ensure that private sector systems are year 2000 compliant, to establish emergency preparedness measures to address problems that might occur, and to limit liability associated with Y2K failures for manufacturers and industry groups.