Sponsors (4)
The bill pressures Congress to reach a budget agreement faster and preserves tax collection and constitutional compliance by escrow-ing pay, but it creates administrative costs, potential transparency and behavioral problems in the legislative process, and short-term cash-flow pain for Members.
All Americans and federal agencies: increases pressure on Congress to adopt a concurrent budget resolution sooner by withholding Members' pay until a resolution is passed, helping reduce the risk and duration of budget impasses.
Taxpayers: preserves continuity of payroll tax withholding and remittance even while Members' pay is escrowed, maintaining steady tax collection and related fiscal flows.
Members of Congress: escrowed pay is released at the end of the Congress, ensuring compliance with the 27th Amendment and avoiding unconstitutional changes to compensation timing.
Members of Congress and the legislative process: withholding pay could reduce transparency about Members' immediate financial obligations and create incentives for short-term procedural tactics to restore pay, complicating legislative operations.
Federal payroll offices and the Department of the Treasury: managing escrow accounts and altered tax treatments increases administrative burden, operational complexity, and costs for payroll administration.
Members of Congress and their households: could face cash-flow disruptions during prolonged budget impasses because pay is withheld until a concurrent budget resolution is adopted or until the end of the Congress.
Based on analysis of 2 sections of legislative text.
If a House hasn't adopted a concurrent budget resolution by April 15, Members' pay due after April 15 is deposited into escrow until a budget is adopted or the Congress ends (starts FY2026).
If a House of Congress has not adopted a concurrent budget resolution by April 15 for the next fiscal year, this law requires that Members’ pay otherwise due beginning April 16 be deposited into an escrow account and held until the House adopts the concurrent budget resolution or the Congress ends, whichever comes first. The rule applies starting in fiscal year 2026, preserves tax withholding rules, requires Treasury assistance for payroll administrators, and ensures any amounts remaining at the end of a Congress are released to comply with the 27th Amendment.
Official title: To provide that the salaries of Members of a House of Congress will be held in escrow if that House has not agreed to a concurrent resolution on the budget for the next fiscal year by April 15.
Introduced January 3, 2025 by Robert J. Wittman · Last progress January 3, 2025