What This Bill Does
This bill amends federal budget law to create a system called "responsible budget targets." Congress and the President must follow spending limits called ceilings when making budget decisions. The spending ceiling is calculated based on the previous year's spending, economic growth rates, and whether the government had a budget surplus or deficit.
Who It Affects
Congress (both Senate and House), the President, the Director of the Congressional Budget Office, the Office of Management and Budget, and the committees on budget in both chambers of Congress.
Key Provisions
- Congress and the President must follow a maximum spending ceiling when considering legislation and budget proposals (Sec. 443)
- The spending ceiling for each year is based on the previous year's spending increased or decreased by a "spending growth factor" that measures economic growth minus an adjustment based on whether the government had a deficit or surplus (Sec. 442)
- Congress can increase the spending ceiling through budget votes when money is needed for emergencies, changes in economic forecasts, economic downturns, timing changes in spending, or new laws that change tax revenue (Sec. 444)
- An "emergency account" tracks unused emergency spending authority that must be paid back by reducing future spending ceilings over a six-year period (Sec. 445)
- The Congressional Budget Office and Office of Management and Budget must calculate and update spending ceiling estimates for Congress and the President (Sec. 442)
What Changes
If this bill becomes law, Congress and the President will operate under newly created spending ceilings calculated using formulas based on economic growth and budget balance. Government agencies must track emergency spending in special accounts and reduce future spending to offset emergency spending used.
Important Definitions
- Primary budget authority: All government spending except interest payments on debt (Sec. 441)
- Spending ceiling: The maximum amount of primary budget authority allowed for a fiscal year (Sec. 441)
- Primary balance factor: A percentage point value starting at zero that increases or decreases based on whether spending exceeded revenue in previous years (Sec. 441)
II
118TH CONGRESS
1ST SESSION
S. 772
To amend the Congressional Budget Act of 1974 to set responsible budget
targets.
IN THE SENATE OF THE UNITED STATES
MARCH 9, 2023
Mr. BRAUN introduced the following bill; which was read twice and referred
to the Committee on the Budget
A BILL
To amend the Congressional Budget Act of 1974 to set
responsible budget targets.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Responsible Budget
4
Targets Act of 2023’’.
5
SEC. 2. ESTABLISHING RESPONSIBLE BUDGET TARGETS.
6
(a) IN GENERAL.—Title IV of the Congressional
7
Budget Act of 1974 (2 U.S.C. 651 et seq.) is amended
8
by adding at the end the following:
9
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
2
•S 772 IS
‘‘PART C—ESTABLISHING RESPONSIBLE BUDGET
1
TARGETS
2
‘‘SEC. 441. DEFINITIONS.
3
‘‘In this part:
4
‘‘(1) PRIMARY BALANCE FACTOR.—
5
‘‘(A) IN
GENERAL.—The term ‘primary
6
balance factor’—
7
‘‘(i) with respect to the first fiscal
8
year that begins not less than 180 days
9
after the date of enactment of this part,
10
means 0.0 percentage point; and
11
‘‘(ii) except as provided in subpara-
12
graph (B), with respect to each fiscal year
13
after the fiscal year described in clause (i),
14
means the sum obtained by adding—
15
‘‘(I) the primary balance factor
16
for the previous fiscal year; and
17
‘‘(II)(aa) if primary budget au-
18
thority exceeded revenue for the fiscal
19
year before the previous fiscal year,
20
0.2 percentage point; and
21
‘‘(bb) if revenue exceeded pri-
22
mary budget authority for the fiscal
23
year before the previous fiscal year,
24
¥0.2 percentage point.
25
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
3
•S 772 IS
‘‘(B) SPECIAL
RULE
FOR
FIRST
YEAR
1
AFTER PRIMARY BALANCE.—
2
‘‘(i) IN GENERAL.—For the first fiscal
3
year that begins after the date of a deter-
4
mination that, for a fiscal year beginning
5
after the date of enactment of this part,
6
revenue exceeded primary budget author-
7
ity, the term ‘primary balance factor’
8
means 0.0 percentage point.
9
‘‘(ii) SUBSEQUENT
ADJUSTMENT.—
10
After the first fiscal year described in
11
clause (i), the primary balance factor shall
12
be adjusted in accordance with subpara-
13
graph (A)(ii).
14
‘‘(2) PRIMARY BUDGET AUTHORITY.—The term
15
‘primary budget authority’ means all budget author-
16
ity except for net interest on the debt.
17
‘‘(3) SPENDING CEILING.—The term ‘spending
18
ceiling’, with respect to a fiscal year, means the
19
maximum amount of primary budget authority for
20
the fiscal year, as determined under section 442.
21
‘‘(4) SPENDING GROWTH FACTOR.—The term
22
‘spending growth factor’, with respect to a fiscal
23
year, means the difference obtained by subtracting—
24
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
4
•S 772 IS
‘‘(A) the primary balance factor for the fis-
1
cal year; from
2
‘‘(B)
the
average
annual
percentage
3
growth in the gross domestic product of the
4
United States during the 5-fiscal-year period
5
before the beginning of the fiscal year before
6
such fiscal year.
7
‘‘SEC. 442. ESTABLISHMENT OF A SPENDING CEILING.
8
‘‘(a) IN GENERAL.—The maximum amount of pri-
9
mary budget authority for a fiscal year shall be the
10
amount of primary budget authority for the previous fiscal
11
year as—
12
‘‘(1) increased by the spending growth factor;
13
and
14
‘‘(2) modified by any adjustments under section
15
444 or 445.
16
‘‘(b) EXCLUSION
OF ADJUSTMENTS FROM BASE-
17
LINE.—In determining the maximum amount of primary
18
budget authority for a fiscal year, the amount of primary
19
budget authority for the previous fiscal year shall not in-
20
clude any adjustment under paragraph (1) or (3) of sec-
21
tion 444 or under section 445(c).
22
‘‘(c) DETERMINATION.—
23
‘‘(1) FOR
CONGRESSIONAL
PURPOSES.—The
24
Director of the Congressional Budget Office shall—
25
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
5
•S 772 IS
‘‘(A) include in each report under section
1
202(e)(1) and revision of such a report an esti-
2
mate of the amount of the spending ceiling (in-
3
cluding factors necessary to produce the esti-
4
mate) and any adjustments under section 444
5
for the fiscal year commencing on October 1 of
6
the year during which the Director submits the
7
report; and
8
‘‘(B) provide to the Committee on the
9
Budget of the Senate and the Committee on the
10
Budget of the House of Representatives up-
11
dates to the estimate of the spending ceiling
12
and adjustments, as appropriate.
13
‘‘(2) FOR
EXECUTIVE
BRANCH
PURPOSES.—
14
The President shall—
15
‘‘(A) include in each budget of the Presi-
16
dent submitted under section 1105 of title 31,
17
United States Code, an estimate by the Office
18
of Management and Budget of the amount of
19
the spending ceiling and any adjustments under
20
section 444 for the fiscal year commencing on
21
October 1 of the year during which the Presi-
22
dent submits the budget; and
23
‘‘(B) obtain from the Office of Manage-
24
ment and Budget updates to the estimate of the
25
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
6
•S 772 IS
spending ceiling and adjustments, as appro-
1
priate.
2
‘‘SEC. 443. USE OF CEILING.
3
‘‘(a) BY CONGRESS.—When considering legislation,
4
the Senate and the House of Representatives shall adhere
5
to the spending ceiling, as determined by the Director of
6
the Congressional Budget Office under section 442(c)(1)
7
(including any adjustments under section 444 or 445(c)).
8
‘‘(b) BY EXECUTIVE BRANCH.—When considering
9
proposals with fiscal implications, the President shall ad-
10
here to the spending ceiling, as determined by the Director
11
of the Office of Management and Budget under section
12
442(c)(2) (including any adjustments under sections 444
13
or 445(c)).
14
‘‘SEC. 444. ADJUSTING THE SPENDING CEILING.
15
‘‘When adopting a concurrent resolution on the budg-
16
et (including a concurrent resolution on the budget de-
17
scribed in section 304), Congress may adjust the spending
18
ceiling as determined under section 442(c)(1), and when
19
enacting a supplemental appropriations Act, Congress
20
may adjust the spending ceiling as determined under sec-
21
tion 442(c)(2), commensurate with—
22
‘‘(1) appropriations for an emergency, as de-
23
fined in section 250(c) of the Balanced Budget and
24
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
7
•S 772 IS
Emergency Deficit Control Act of 1985 (2 U.S.C.
1
900(c));
2
‘‘(2) a revision in the estimate of the gross do-
3
mestic product of the United States for any year to
4
which section 441(4)(B) applies;
5
‘‘(3) cyclical variations due to the difference be-
6
tween the actual and potential amount of the gross
7
domestic product of the United States;
8
‘‘(4) timing shifts of expenditures or revenues
9
due; or
10
‘‘(5) enacted laws that result in a change in
11
revenue.
12
‘‘SEC. 445. EMERGENCY ACCOUNT ADJUSTMENTS.
13
‘‘(a) ESTABLISHMENT OF EMERGENCY ACCOUNT.—
14
The Director of the Congressional Budget Office and the
15
Director of the Office of Management and Budget shall
16
each maintain an emergency account.
17
‘‘(b) COMPUTATION.—
18
‘‘(1) IN GENERAL.—The amount of the emer-
19
gency account shall be—
20
‘‘(A) increased by the amount of the ad-
21
justment made under section 444(1); and
22
‘‘(B) decreased by the difference obtained
23
by subtracting the amount of primary budget
24
authority provided for a fiscal year from the ad-
25
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
8
•S 772 IS
justed spending ceiling (excluding any adjust-
1
ment under section 444(1), and including the
2
effect of adjustments under section 445(c)) for
3
that fiscal year.
4
‘‘(2) LIMIT
OF
ZERO.—The amount of the
5
emergency account may not be less than $0.
6
‘‘(c) ADJUSTMENT.—
7
‘‘(1) IN GENERAL.—If the amount of the emer-
8
gency account on the last day of a fiscal year has
9
increased, as compared to the last day of the fiscal
10
year before such fiscal year, the amount of the
11
spending ceiling for the second fiscal year after such
12
fiscal year and each of the ensuing 5 fiscal years
13
shall be reduced by the amount equal to one-sixth of
14
the amount of the increase in the emergency ac-
15
count.
16
‘‘(2) MODIFICATION OF ADJUSTMENT.—
17
‘‘(A) FOR
CONGRESSIONAL
PURPOSES.—
18
When adopting a concurrent resolution on the
19
budget (including a concurrent resolution on
20
the budget described in section 304), Congress
21
may, for purposes of applying the spending ceil-
22
ing in the Senate and the House of Representa-
23
tives—
24
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
9
•S 772 IS
‘‘(i) reduce the amount of the spend-
1
ing ceiling by the amount of the emergency
2
account over a period shorter than 6 fiscal
3
years; or
4
‘‘(ii) in the case of an ongoing emer-
5
gency, reduce the amount of the spending
6
ceiling by the amount of the emergency ac-
7
count over a period longer than 6 fiscal
8
years.
9
‘‘(B) FOR
EXECUTIVE
BRANCH
PUR-
10
POSES.—When enacting a supplemental appro-
11
priations Act, Congress may, for purposes of
12
applying the spending ceiling in the executive
13
branch—
14
‘‘(i) reduce the amount of the spend-
15
ing ceiling by the amount of the emergency
16
account over a period shorter than 6 fiscal
17
years; or
18
‘‘(ii) in the case of an ongoing emer-
19
gency, reduce the amount of the spending
20
ceiling by the amount of the emergency ac-
21
count over a period longer than 6 fiscal
22
years.’’.
23
(b) CONFORMING AMENDMENT.—The table of con-
24
tents in section 1(b) of the Congressional Budget and Im-
25
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS
10
•S 772 IS
poundment Control Act of 1974 is amended by inserting
1
after the item relating to section 428 the following:
2
‘‘PART C—ESTABLISHING RESPONSIBLE BUDGET TARGETS
‘‘Sec. 441. Definitions.
‘‘Sec. 442. Establishment of a spending ceiling.
‘‘Sec. 443. Use of ceiling.
‘‘Sec. 444. Adjusting the spending ceiling.
‘‘Sec. 445. Emergency account adjustments.’’.
Æ
VerDate Sep 11 2014
02:20 Mar 21, 2023
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6301
E:\BILLS\S772.IS
S772
kjohnson on DSK79L0C42PROD with BILLS