Rep. Steube Introduces Dollar-for-Dollar Deficit Reduction Act to Force Congress to Cut Spending Before Raising the Debt Limit
WASHINGTON–U.S. Representative Greg Steube (R-Fla.) introduced the Dollar-for-Dollar Deficit Reduction Act, legislation requiring any increase or suspension of the debt limit to be matched by equal or greater spending reductions over the current year and the following 10 years. The bill is led by Senator John Barrasso (R-Wyo.) in the Senate and is endorsed by the National Taxpayers Union.
“Congress cannot keep raising the credit limit on the American people without cutting up the credit card. Every time we raise the debt limit without cutting spending, we hand our children and grandchildren the bill for our own recklessness,” said Rep. Greg Steube. “This bill puts a simple rule in place. If Congress wants to raise the credit limit, Congress must cut spending by the same amount. That is basic fiscal responsibility, and it is long past time we practiced it.”
“Democrats have used their reckless tax and spend process to add more money to our nation’s debt,” said Sen. Barrasso. “Governing responsibly begins with budgeting responsibly. This legislation will help stop the Democrats’ out-of-control spending spree and put us back onto the path of financial stability.”
“For too long, Washington’s budgeting practices have followed the same tired script: borrow more now, promise fiscal discipline later, and leave taxpayers with a larger tab. 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. NTU applauds Rep. Steube for his leadership in promoting fiscal responsibility in Congress.” —Alexander Ciccone, Policy and Government Affairs Manager
The Dollar-for-Dollar Deficit Reduction Act requires any debt limit increase or suspension to be matched by equal or greater spending cuts over the current year and the following 10 years. It creates a point of order in the House and Senate against considering any debt limit legislation that does not include matching spending reductions. The bill requires that a Congressional Budget Office (CBO) cost estimate be publicly available for at least 24 hours before a vote on covered debt-limit legislation.
This legislation requires the Secretary of the Treasury to notify the House Ways and Means Committee and Senate Finance Committee when the United States is nearing the debt limit and when extraordinary measures may be necessary. It also prohibits budget gimmicks, including counting net interest savings toward required cuts or shifting costs outside the 10-year window.
The full text of the Dollar-for-Dollar Deficit Reduction Act is available here.
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