Sponsors (2)
The bill increases fiscal discipline and protects taxpayers from revenue increases by imposing tougher rules and pay-linked enforcement on Members of Congress, but it raises the risk of service cuts, economic slowdown, greater legislative gridlock, and governance concerns about tying pay to budget certifications.
Taxpayers and future generations: stronger budget focus and fiscal discipline could lower federal borrowing costs and improve long-term economic prospects.
Members of Congress: financial incentives (pay escrow/withholding) increase pressure to pass a balanced-budget concurrent resolution, creating a stronger incentive for deficit reduction.
Taxpayers: escrowing Members' pay with normal tax withholding helps preserve tax revenue flows to the Treasury during escrow periods.
Middle-class families and taxpayers: pressure to balance the budget is likely to lead to cuts in public services or social programs many households rely on.
Workers and local economies: rapid deficit-reduction efforts (spending cuts or tax changes) could slow near-term economic growth and job creation.
Taxpayers and state/federal governments: the 3/5 supermajority empowers a sizable minority to block revenue legislation, increasing legislative gridlock and raising the cost of bargaining to address deficits or new needs.
Based on analysis of 3 sections of legislative text.
Conditions Members' pay on adoption of a defined balanced concurrent budget, requires OMB certification, and imposes a three‑fifths vote requirement for revenue increases in each chamber.
Official title: Reduce a portion of the annual pay of Members of Congress for the failure to adopt a concurrent resolution on the budget which does not provide for a balanced budget, and for other purposes.
Introduced January 9, 2025 by Steve Daines · Last progress January 9, 2025
Requires Congress to adopt a concurrent budget resolution that is balanced (outlays ≤ receipts and outlays ≤ 18% of projected GDP) or face automatic holdbacks and, ultimately, a reduction of Members' pay to $1 per year. Sets deadlines for certification by the Director of OMB for FY2026 and FY2027 and requires escrow of Members' compensation if no certification is made. Also imposes a three‑fifths supermajority requirement in each chamber to agree to any measure that increases revenue for that chamber.