Responsible Budgeting Act
The Responsible Budgeting Act would overhaul how the federal debt limit is increased. It creates an automatic debt-limit increase tied to the adoption of a budget resolution that achieves a specified debt-to-GDP target (the “required ratio”). If Congress passes a qualifying budget resolution, a joint resolution increasing the debt limit would be prepared and deemed passed in both chambers, expediting the increase. If Congress does not adopt a qualifying budget, the President could unilaterally authorize an increase accompanied by a debt-reduction proposal that meets the same ratio, with a defined 30-day window for Congressional disapproval. The bill also adds a structured, expedited process for considering the President’s debt-reduction proposals and any alternative proposals in both houses, including scoring by the Congressional Budget Office (CBO) and predefined rules for floor consideration. The goal appears to be to prevent debt-ceiling brinkmanship by linking debt-limit increases to budgetary targets and authorizing a faster, executive- and legislative-branch framework to address debt increases or reductions within tight timelines.
Key Points
- 1Automatic debt-limit increase tied to budget resolutions: If Congress adopts a concurrent budget resolution that satisfies a required debt-reduction ratio, the Clerk of the House prepares a joint resolution to increase the debt limit to the amount specified by that budget resolution, with an expedited passage process for both chambers.
- 2President’s fallback path if no qualifying budget is adopted: If no budget resolution meets the required ratio by the covered date, the President may notify Congress of an increase in the debt limit accompanied by a debt-reduction proposal that satisfies the ratio. The increase takes effect 30 days later unless Congress passes a disapproval joint resolution within the 30-day window.
- 3Defined “required ratio”: The ratio is a benchmark that reduces the projected debt held by the public as a share of GDP by at least 5 percentage points in the tenth fiscal year after the current year.
- 4Expedited procedures for debt-reduction proposals: The bill creates a fast-track process in both the House and Senate for considering the President’s debt-reduction proposal and any alternative proposals, including timing, scoring by CBO, and rules for floor consideration (e.g., limited debate, no amendments, and specific discharge and reporting timelines).
- 5Congressional Budget Act updates: The bill amends the Congressional Budget Act of 1974 to add new sections (407-410) governing consideration of the President’s debt-reduction proposal and alternative proposals, with provisions on timing, scoring, and floor rules.