This bill would require that any increase or suspension of the statutory debt limit be matched by equal or greater net spending reductions over the current and next 10 fiscal years. It adds a new section to Title 31 requiring the Treasury Secretary to issue a "debt limit warning" when the United States is within 60 days of reaching the debt limit and defines "extraordinary measures." A formal Presidential request to raise the debt limit must include proposed legislation that reduces spending by an amount equal to or greater than the requested increase; net interest savings may not be counted. The bill specifies that spending savings must be calculated by the Congressional Budget Office (CBO) against a baseline consistent with section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 and that the baseline must exclude extrapolated emergency-designated spending.
The bill also amends the Congressional Budget Impoundment Control Act to create points of order in both the House and Senate. Under those points of order, measures that increase or suspend the debt limit are not in order unless they contain the required net spending reductions. The CBO must make cost estimates publicly available on its website for at least 24 hours before either chamber may vote. The bill prohibits counting timing shifts that move outlays or revenues outside the 10-year window toward the savings target. For suspension measures, the CBO must calculate the projected debt amount covered by the suspension as the difference between projected statutory debt at the end and the start of the suspension. In the Senate, waiving these points of order or sustaining appeals of the Chair’s rulings requires a three-fifths majority.
No publicly available information on implementation costs or federal budget effects other than the spending reduction requirements stated in the bill text.
No publicly available information.
No publicly available information.