Federal

A bill to require agencies submit zero-based budgets.

Source: Congress.gov · 366 words in original text

What This Bill Does

This bill requires federal agencies to submit zero-based budgets to Congress every six years. Zero-based budgets require agency managers to analyze their current spending and rank programs by importance instead of just adjusting previous budgets.

Who It Affects

Federal agencies (defined as organizations under federal law), the Director of the Office of Management and Budget, the Senate Committee on the Budget, and the House Committee on the Budget.

Key Provisions

• Every sixth year, each agency must submit a zero-based budget covering the next five fiscal years to the Director of the Office of Management and Budget and both congressional budget committees (Sec. 1(b)) • Each agency except the Department of Defense and the National Nuclear Security Administration must recommend which programs Congress should cut or reduce by at least 2 percent of the previous year's discretionary spending (Sec. 1(c)) • A zero-based budget requires managers to examine current objectives, operations and costs; consider alternative ways to carry out programs; and rank programs by order of importance to the organization (Sec. 1(a)(2))

What Changes

Agencies will need to create comprehensive budget analyses every six years instead of their current budgeting process. Most agencies must also recommend specific budget cuts of at least 2 percent.

Important Definitions

"Agency" means organizations defined under federal law as agencies. "Zero-based budget" means a systematic budget analysis where managers examine current spending, consider alternatives, and rank programs by importance.

Effective Date

Not specified in bill text

II 118TH CONGRESS 1ST SESSION S. 201 To require agencies submit zero-based budgets. IN THE SENATE OF THE UNITED STATES FEBRUARY 1, 2023 Mr. RISCH (for himself, Mr. CRUZ, Mr. CRAPO, Mr. SCOTT of Florida, Mr. BRAUN, and Mr. BUDD) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Govern- mental Affairs A BILL To require agencies submit zero-based budgets. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. ZERO-BASED BUDGETS. 3 (a) DEFINITION.—In this Act: 4 (1) AGENCY.—The term ‘‘agency’’ has the 5 meaning given the term in section 551 of title 5, 6 United States Code. 7 (2) ZERO-BASED BUDGET.—The term ‘‘zero- 8 based budget’’ means a systematic budget analysis 9 in support of decision making in which managers— 10 VerDate Sep 11 2014 20:11 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S201.IS S201 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 201 IS (A) examine current objectives, operations, 1 and costs; 2 (B) consider alternative ways of carrying 3 out a program or activity; and 4 (C) rank different programs or activities 5 by order of importance to the organization. 6 (b) ZERO-BASED BUDGETS.—Every sixth year, each 7 agency shall submit to the Director of the Office of Man- 8 agement and Budget and the Committee on the Budget 9 of the Senate and the Committee on the Budget of the 10 House of Representatives a zero-based budget for the next 11 fiscal year and each of the 4 ensuing fiscal years. 12 (c) RECOMMENDATIONS.—In addition to the zero- 13 based budget required under subsection (b), each agency, 14 except the Department of Defense and the National Nu- 15 clear Security Administration shall submit recommenda- 16 tions for which programs Congress should cut or reduce 17 appropriations in an amount that equals not less than a 18 2-percent reduction from the previous year appropriation 19 in discretionary spending. 20 Æ VerDate Sep 11 2014 20:11 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S201.IS S201 pbinns on DSKJLVW7X2PROD with $$_JOB

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.