Responsible Budgeting Act

This legislation would change how the nation’s debt limit is handled. When Congress passes the yearly budget plan, the debt limit would automatically go up for that same year. It also creates a process for the President to modify the debt ceiling when needed.

Key points:

• Who is affected: How the federal government manages the debt limit and the yearly budget process.
• What changes: The debt limit would rise automatically for the fiscal year covered by a budget resolution, and there would be a new way for the President to adjust the debt ceiling.
• When: Applies to the fiscal year tied to the budget resolution passed by Congress.