Dollar-for-Dollar Deficit Reduction Act

Dollar-for-Dollar Deficit Reduction Act

The bill establishes a framework to require legislation that increases or suspends the public debt limit to include spending reductions that are equal to or greater than the projected increase in debt that will occur under the legislation. The bill allows the spending reductions to be phased in over the period that includes the current and next 10 fiscal years.

Specifically, the bill requires the Department of the Treasury to notify the House Ways and Means Committee and the Senate Finance Committee when it determines that the federal government will reach the debt limit within 60 days without the implementation of extraordinary measures. The notification must also indicate when extraordinary measures may be necessary to prolong the funding of the federal government in the absence of a debt limit increase.

In addition, the bill requires any formal presidential request to increase the debt limit to include (1) the amount of the proposed increase, and (2) proposed legislation to reduce spending by an amount that is equal to or greater than the amount of the requested increase.

Finally, the bill establishes budget points of order that may be raised in the House of Representative and the Senate against legislation that increases or suspends the debt limit and does not contain net spending reductions that are equal to or greater than the increase in the debt that will occur under the legislation.

Bill 118 hr 1289, also known as the Dollar-for-Dollar Deficit Reduction Act, is a piece of legislation introduced in the US Congress. The main goal of this bill is to reduce the federal deficit by requiring that any increase in the debt limit be accompanied by an equal amount of spending cuts.

The bill aims to address the growing national debt by ensuring that any additional borrowing by the government is offset by reductions in government spending. This would help to prevent the deficit from increasing further and put the country on a path towards fiscal responsibility.

Supporters of the bill argue that it is necessary to take action to address the growing national debt, which currently stands at over $28 trillion. They believe that implementing a dollar-for-dollar approach to deficit reduction is a responsible way to ensure that the government does not continue to accumulate unsustainable levels of debt. Opponents of the bill, however, argue that it could lead to harmful cuts to important government programs and services. They believe that a more balanced approach to deficit reduction, which includes both spending cuts and revenue increases, would be a more effective way to address the national debt. Overall, the Dollar-for-Dollar Deficit Reduction Act is a proposed piece of legislation that seeks to address the federal deficit by requiring equal spending cuts for any increase in the debt limit. Supporters believe it is a responsible approach to fiscal policy, while opponents have concerns about potential negative impacts on government programs.