Dollar-for-Dollar Deficit Reduction Act

3/12/2024, 1:55 AM

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.

Congress
118

Number
S - 714

Introduced on
2023-03-08

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

3/8/2023

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

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.

Alternative Names
Official Title as IntroducedA bill to require that any debt limit increase or suspension be balanced by equal spending cuts over the next decade.

Policy Areas
Economics and Public Finance

Comments

Recent Activity

Latest Summary1/3/2024

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 projecte...


Latest Action3/8/2023
Read twice and referred to the Committee on the Budget.