One Percent Spending Reduction Act of 2018
This bill amends the Balanced Budget and Emergency Deficit Control Act of 1985 to establish and enforce new spending caps.
The bill establishes an outlay cap (less net interest payments) for FY2019 of $3.826 trillion, less 1%. For each year from FY2020-FY2023, the bill reduces the outlay cap by 1% of the previous year's outlay cap.
For FY2024 and subsequent years, total outlays may not exceed 18% of the gross domestic product (GDP) for that year as estimated by the Office of Management and Budget (OMB). Beginning in FY2025, total projected outlays for any year may not be less than the total projected outlays for the preceding year.
The OMB must enforce the spending caps using a sequestration to eliminate any excess spending through automatic cuts. The bill eliminates most of the existing exemptions from sequestration, with the exception of interest payments on the debt.
If the OMB projects a sequestration, the congressional budget committees may report a resolution directing congressional committees to change existing law to achieve the spending reductions necessary to meet the outlay limits.
The bill amends the Congressional Budget Act of 1974 to establish procedures for Congress to enforce the outlay caps established by this bill.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5572 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 5572
To prevent a fiscal crisis by enacting legislation to balance the
Federal budget through reductions of discretionary and mandatory
spending.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 18, 2018
Mr. Sanford (for himself, Mr. Palmer, Mr. Gosar, Mr. Meadows, Mr.
DesJarlais, Mr. Gohmert, Mr. Jones, Mr. Massie, and Mr. Gaetz)
introduced the following bill; which was referred to the Committee on
the Budget, and in addition to the Committee on Rules, for a period to
be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To prevent a fiscal crisis by enacting legislation to balance the
Federal budget through reductions of discretionary and mandatory
spending.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``One Percent Spending Reduction Act
of 2018''.
SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) The fiscal crisis faced by the Federal Government
demands immediate action.
(2) The dramatic growth in spending and debt in recent
years threatens the economic and national security of the
United States:
(A) Federal spending has grown from 18 percent of
gross domestic product in 2001 to nearly 21 percent of
gross domestic product in 2017.
(B) Total Federal debt exceeds $21,300,000,000,000
and is projected to increase each year over the next 10
years.
(C) Without action, the Federal Government will
continue to run massive deficits in the next decade and
total Federal debt will rise to $33,800,000,000,000 by
2028.
(D) Interest payments on this debt will soon rise
to the point where balancing the budget as a matter of
policy is beyond the reach of Congress.
(3) Absent reform, the growth of Social Security, Medicare,
Medicaid, and other health-related spending will overwhelm all
other Federal programs and consume all projected tax revenues.
(b) Purpose.--The purpose of this Act is to address the fiscal
crisis by--
(1) acting quickly to balance the Federal budget and
eliminate the parade of deficits and ballooning interest
payments;
(2) achieving balance by reducing spending 1 percent per
year until spending equals projected long-term revenues; and
(3) reforming entitlement programs to ensure long-term
fiscal stability and balance.
SEC. 3. ESTABLISHMENT AND ENFORCEMENT OF SPENDING CAPS.
(a) Outlay Caps.--The Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 900 et seq.) is amended by inserting after
section 253 the following:
``SEC. 253A. ESTABLISHING OUTLAY CAPS.
``(a) Outlay Caps.--In this section, the term `outlay cap' means:
``(1) Fiscal year 2019.--For fiscal year 2019, total
outlays (less net interest payments) shall be not more than
$3,826,000,000,000, less 1 percent.
``(2) Fiscal year 2020.--For fiscal year 2020, total
outlays (less net interest payments) shall be not more than the
amount computed under paragraph (1), less 1 percent.
``(3) Fiscal year 2021.--For fiscal year 2021, total
outlays (less net interest payments) shall be not more than the
amount computed under paragraph (2), less 1 percent.
``(4) Fiscal year 2022.--For fiscal year 2022, total
outlays (less net interest payments) shall be not more than the
amount computed under paragraph (3), less 1 percent.
``(5) Fiscal year 2023.--For fiscal year 2023, total
outlays (less net interest payments) shall be not more than the
amount computed under paragraph (4), less 1 percent.
``(6) Fiscal year 2024 and subsequent fiscal years.--
``(A) In general.--For fiscal year 2024 and each
fiscal year thereafter, total outlays shall be not more
than 18 percent of the gross domestic product for that
fiscal year, as estimated by the Office of Management
and Budget prior to March of the previous fiscal year.
``(B) Limitation.--Notwithstanding subparagraph
(A), for any fiscal year beginning with fiscal year
2025, total projected outlays may not be less than
total projected outlays for the preceding fiscal year.
``(b) Sequestration.--
``(1) In general.--
``(A) Excess spending.--Not later than 45 calendar
days after the beginning of a fiscal year, the Office
of Management and Budget shall prepare and the
President shall order a sequestration to eliminate any
excess outlay amount.
``(B) Definitions.--
``(i) Fiscal years 2019 through 2023.--For
each of fiscal years 2019 through 2023 and for
purposes of this subsection, the term `excess
outlay amount' means the amount by which total
projected Federal outlays (less net interest
payments) for a fiscal year exceeds the outlay
cap for that fiscal year.
``(ii) Fiscal year 2024 and subsequent
fiscal years.--For fiscal year 2024 and each
fiscal year thereafter and for purposes of this
subsection, the term `excess outlay amount'
means the amount by which total projected
Federal outlays for a fiscal year exceeds the
outlay cap for that fiscal year.
``(2) Sequestration.--
``(A) CBO preview report.--On August 15 of each
year, the Congressional Budget Office shall issue a
sequestration preview report as described in section
254(c)(4).
``(B) OMB preview report.--On August 20 of each
year, the Office of Management and Budget shall issue a
sequestration preview report as described in section
254(c)(4).
``(C) Final report.--On October 31 of each year,
the Office of Management and Budget shall issue a final
sequestration report as described in section 254(f)(3),
which shall be accompanied by a Presidential order
detailing uniform spending reductions equal to the
excess outlay amount.
``(D) Process.--The reductions shall generally
follow the process set forth in sections 253 and 254,
except as provided in this section.
``(3) Congressional action.--If the August 20 report by the
Office of Management and Budget projects a sequestration, the
Committee on the Budget of the Senate and the Committee on the
Budget of the House of Representatives may report a resolution
directing committees of their House to change the existing law
to achieve the spending reductions outlined in the August 20
report necessary to meet the outlay limits.
``(c) No Exempt Programs.--Section 255 and section 256 shall not
apply to this section or any sequestration order issued under this
section, except that payments for net interest (budget function 900)
shall be exempt from the spending reductions under sequestration.
``(d) Look Back.--If, after November 14, a bill resulting in
outlays for the fiscal year in progress is enacted that causes excess
outlays, the excess outlay amount for the next fiscal year shall be
increased by the amount or amounts of that breach.''.
(b) Conforming Amendments to BBEDCA.--
(1) Sequestration preview reports.--Section 254(c)(4) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 904(c)(4)) is amended to read as follows:
``(4) Outlay cap sequestration reports.--The preview
reports shall set forth for the budget year estimates for the
following:
``(A)(i) For each of budget years 2019 through
2023, total projected outlays (less net interest
payments), less one percent.
``(ii) For budget year 2024 and each subsequent
budget year, the estimated gross domestic product for
that budget year.
``(B) The amount of reductions required under
section 253A.
``(C) The sequestration percentage necessary to
achieve the required reduction under section 253A.''.
(2) Final sequestration reports.--Section 254(f)(3) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 904(f)(3)) is amended to read as follows:
``(3) Outlay caps sequestration reports.--The final reports
shall contain all the information required in the outlay cap
sequestration preview reports. In addition, these reports shall
contain, for the budget year, for each account to be
sequestered, estimates of the baseline level of sequestrable
budgetary resources and resulting outlays and the amount of
budgetary sources to be sequestered and result in outlay
reductions. The reports shall also contain estimates of the
effects on outlays on the sequestration of each outyear for
direct spending programs.''.
(c) Enforcement.--Title III of the Congressional Budget Act of 1974
(2 U.S.C. 631 et seq.) is amended by adding after section 315 the
following:
``SEC. 316. ENFORCEMENT PROCEDURES.
``(a) Outlay Caps.--It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment, amendment between the Houses, or conference report that
includes any provision that would cause the most recently reported,
current outlay cap set forth in section 253A of the Balanced Budget and
Emergency Deficit Control Act of 1985 to be breached or increased.
``(b) Waiver or Suspension.--
``(1) In the senate.--The provisions of this section may be
waived or suspended in the Senate only by the affirmative vote
of two-thirds of the Members, duly chosen and sworn.
``(2) In the house.--The provisions of this section may be
waived or suspended in the House of Representatives only by a
rule or order proposing only to waive such provisions by an
affirmative vote of two-thirds of the Members, duly chosen and
sworn.
``(c) Point of Order Protection.--In the House, it shall not be in
order to consider a rule or order that waives the application of
paragraph (2) of subsection (b).
``(d) Motion To Suspend.--It shall not be in order for the Speaker
to entertain a motion to suspend the application of this section under
clause 1 of rule XV.''.
SEC. 4. CONFORMING AMENDMENTS.
The table of contents set forth in--
(1) section 1(b) of the Congressional Budget and
Impoundment Control Act of 1974 is amended by inserting after
the item relating to section 315 the following new item:
``Sec. 316. Enforcement procedures.'';
and
(2) section 250(a) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by inserting after the
item relating to section 253 the following new item:
``Sec. 253A. Establishing outlay caps.''.
SEC. 5. EFFECTIVE DATE.
This Act and the amendments made by this Act shall apply to fiscal
year 2019 and each fiscal year thereafter, including any reports and
calculations required for implementation in fiscal year 2019.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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