HR 113119th CongressIn Committee

Budget Process Enhancement Act

Introduced: Jan 3, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

Budget Process Enhancement Act is a congressional bill that seeks to (1) remove automatic inflation-based growth from the federal budget baseline and (2) impose a pay-withholding mechanism on Members of the House if a budget resolution for FY 2026 is not agreed to by a specified deadline, along with related budget accountability measures. Specifically, the bill would bar inflation adjustments in the baseline (and tighten baseline rules), and it would require the House to approve a concurrent resolution on the FY2026 budget by a set date. If that deadline is missed, Members’ salaries in the affected House would be held in escrow for a defined period, with funds only released if/when a budget resolution is subsequently adopted or at the end of the current Congress. The bill also creates a formal process to assess compliance with timely submission of the President’s budget, and it punishes noncompliant leadership at the Office of Management and Budget by withholding funds and prohibiting retroactive pay. Sections 202 and 203 take effect upon enactment; other baseline changes are enacted via the related changes to the Balanced Budget and Emergency Deficit Control Act.

Key Points

1Changes in the baseline (Title I): Eliminates inflation-based adjustments to the budget baseline and narrows the baseline by striking certain default growth provisions; explicitly prohibits adjustment for inflation and removes several existing baseline paragraphs, while (paraphrased) excluding emergency requirements and supplemental appropriations from the new baseline treatment.
2Salary escrow for Members (Sec. 201): If by April 15, 2025 the House has not agreed to a concurrent budget resolution for FY2026, the payroll administrator must escrow all scheduled payments to Members for the period starting April 16, 2025. Payments are released only when the period ends, i.e., when a budget resolution is adopted or at the end of the 118th Congress. The mechanism includes provisions for withholding and remittance consistent with tax rules and ensures release at the end of the Congress to avoid violating the 27th Amendment.
3Compliance determination (Sec. 202): The Inspector General of the Office of Personnel Management must determine, within three days after the President’s budget is due, whether the Director of OMB and the President are in compliance with the statutory budget submission requirement, and must notify relevant Senate and House committees.
4No pay for noncompliance (Sec. 203): If noncompliance is found, no funds may be appropriated for pay for the Director of the OMB or deputy leadership during the noncompliance period, and no retroactive pay is allowed after the period ends.
5Effective date (Sec. 204): Sections 202 and 203 take effect on enactment.

Impact Areas

Primary group/area affected: Members of the House of Representatives (and their payroll/payroll staff), as well as the House payroll administration and the OMB leadership. The bill directly affects how Members are compensated under a budget deadlock scenario and imposes new administrative steps on payroll and budget compliance.Secondary group/area affected: Senate leadership and federal budget-process actors (OMB, OPM IG, Congressional Budget Office indirectly via budget processes); committees of the House and Senate with jurisdiction over budget and appropriations.Additional impacts: Potential constitutional considerations (the 27th Amendment) are addressed by ensuring any escrow-related withholding aligns with constitutional limits on changing compensation; practical implications for budgeting, cash flow, and political dynamics around budget deadlines; and potential questions about timing given the bill’s reference to the 118th Congress and the calendar for subsequent congressional terms.

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