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Dollar-for-Dollar Deficit Reduction Act

Source: Congress.gov  ·  1,829 words in original text
This bill requires Congress to cut spending by an equal amount whenever it increases or suspends the debt limit (the legal cap on how much money the federal government can borrow). Any spending cuts must happen over the next 10 years and cannot include savings from lower interest payments. --- ##
- Congress members in both the Senate and House of Representatives - The President when requesting debt limit changes - The Secretary of the Treasury - The Congressional Budget Office (an independent agency that analyzes budgets) --- ##
- Congress cannot vote on any bill that raises the debt limit unless the bill includes spending cuts equal to or greater than that increase over the current year and the next 10 years (Sec. 316(a)(1)) - Congress cannot vote on any bill that suspends the debt limit unless the bill includes spending cuts equal to or greater than the projected debt growth during the suspension period (Sec. 317(a)(1)) - The Treasury Secretary must warn Congress if the government will hit the debt limit within 60 calendar days even with emergency measures in place (Sec. 2) - Any spending cuts proposed to meet these requirements cannot shift money from within the 10-year period to outside it, and cannot count interest savings (Sec. 316(a)(2)(C) and Sec. 317(a)(2)(C)) - The Senate can waive these requirements only with a three-fifths supermajority vote, which is 60 votes if all members are present (Sec. 316(b)(1) and Sec. 317(b)(1)) --- ##
Currently, Congress can raise the debt limit without requiring matching spending cuts. Under this bill, Congress would be prohibited from voting on debt limit increases or suspensions without first passing spending reduction legislation. The Congressional Budget Office would need to publicly post its cost estimate for at least 24 hours before any vote on raising the debt limit can occur. --- ##
- **Extraordinary measures**: Actions the Treasury Secretary can take when the debt limit is reached to keep the government functioning without a debt limit increase (Sec. 2) - **Near breach**: When the Treasury Secretary determines the government will hit the debt limit within 60 calendar days even with emergency measures (Sec. 2) - **Net spending reductions**: Spending cuts that do not include savings from lower interest payments (Sec. 316 and Sec. 317) --- ##
Not specified in bill text
Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.