Sponsors (9)
The bill increases fiscal accountability for emergency spending and shields major entitlement and defense accounts, but does so by imposing delayed, uniform across-the-board cuts that can reduce services, create planning uncertainty, and discourage robust emergency responses.
Seniors, veterans, and Medicare beneficiaries are protected from automatic cuts because Social Security, Medicare, VA programs, Railroad Retirement, and national defense accounts are exempted.
Taxpayers could face lower net federal outlays over a five-year window after emergency spending because the bill spreads sequestration offsets across five years to recoup emergency-designated costs.
Congress (and by extension taxpayers) gains greater transparency and paper trail for emergency spending because committees must justify emergency designations and OMB must notify Congress of affected accounts.
State governments, federal employees, low-income individuals, and many programs would face uniform percentage cuts that reduce services and benefits and can disproportionately harm programs with less flexibility or fixed costs.
Taxpayers and state governments could see reduced capacity to respond to future emergencies because the automatic multi-year offsets effectively penalize emergency spending by imposing across-the-board savings even when other offsets are limited.
State governments, federal employees, and nonprofits would face greater budgeting and planning uncertainty because emergency spending triggers delayed, multi-year automatic cuts that complicate program and grant planning.
Based on analysis of 2 sections of legislative text.
Requires OMB to sequester budgetary resources over five years so outlay savings equal one-fifth of any statutorily designated emergency spending each year, with uniform cuts and specified exemptions.
Official title: To require the Director of the Office of Management and Budget to offset emergency spending, and for other purposes.
Introduced June 5, 2025 by Marlin A. Stutzman · Last progress June 5, 2025
Requires the White House Office of Management and Budget to spread required savings from any statutorily designated emergency spending over five years by issuing sequestration orders that reduce budgetary resources so outlay savings equal one-fifth of that emergency spending in each year. Sets uniform percentage reductions across non-exempt accounts, lists several categorical program exemptions, and requires Congress to include written justifications showing why spending was designated as emergency under existing budget rules. Specifies covered terms and cross-references existing definitions of "emergency spending" from BBEDCA and the Statutory PAYGO Act, limits sequestration to the same spending type (discretionary or direct) as the emergency, allows offsets enacted in the same law to reduce the sequestration amount, and requires OMB to notify Congress of affected accounts when ordering sequestration.