U.S. Representative Greg Steube (R-Fla.) introduced the Dollar-for-Dollar Deficit Reduction Act, a bill that would mandate equal or greater federal spending cuts whenever Congress increases or suspends the national debt limit.
The proposed legislation, led by Senator John Barrasso (R-Wyo.) in the Senate, requires that any debt limit modification be matched by budget reductions over the current fiscal year and the subsequent 10-year period. The measure has received an endorsement from the National Taxpayers Union (NTU).
“Congress cannot keep raising the credit limit on the American people without cutting up the credit card,” Steube said in a statement. “Every time we raise the debt limit without cutting spending, we hand our children and grandchildren the bill for our own recklessness.”
Under the terms of the bill, a point of order would be established in both the House of Representatives and the Senate against any debt-limit legislation that lacks the required offsetting spending cuts. It also mandates that a Congressional Budget Office cost estimate be published at least 24 hours prior to any vote on debt-limit bills.
“Governing responsibly begins with budgeting responsibly,” Barrasso said. “This legislation will help stop the Democrats’ out-of-control spending spree and put us back onto the path of financial stability.”
The bill contains provisions prohibiting certain budget calculations, such as counting net interest savings toward the required reductions or scheduling cost shifts outside the 10-year window.
Additionally, it directs the Secretary of the Treasury to formally notify the House Ways and Means Committee and Senate Finance Committee when the nation approaches the debt ceiling or when extraordinary financial measures may be needed.
Alexander Ciccone, Policy and Government Affairs Manager at NTU, spoke in favor of the proposal. “The Dollar-For-Dollar Deficit Reduction Act is a much-needed, commonsense reform that will allow debt limit increases only when coupled with equivalent spending reductions,” Ciccone said. “NTU applauds Rep. Steube for his leadership in promoting fiscal responsibility in Congress.”
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