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Inserts new sections 407–410 into Part A of title IV of the Congressional Budget and Impoundment Control Act of 1974 after section 406, establishing procedures for consideration of Presidential debt reduction proposals and related expedited floor procedures.
Adds new section 3101A to Title 31 establishing a procedure whereby adoption of a concurrent budget resolution meeting a required ratio triggers preparation and automatic passage/processing of a joint resolution to increase the statutory public debt limit to the amount specified by that concurrent resolution.
Adds new section 3101B to Title 31 authorizing the President to submit a written notification to increase the statutory debt limit if Congress fails to adopt a qualifying concurrent budget resolution by the covered date, and setting expedited procedures for congressional consideration and potential disapproval.
Creates a new process for raising the federal debt limit tied to congressional budget action and gives the President a temporary, limited authority to raise the limit if Congress misses deadlines. It also requires expedited review in Congress of any presidential debt‑reduction plan that must achieve a specified fiscal target: lowering the public debt‑to‑GDP ratio by at least 5 percentage points in the tenth fiscal year. Sets deadlines, forms of notification, CBO scoring and committee review timelines, and fast procedures for floor consideration and an up‑or‑down vote on both disapproval of temporary increases and debt‑reduction legislation that meets the required ratio.
Strikes existing section 3101A of Title 31 and inserts a new section 3101A titled “Modification of statutory limit on the public debt,” which ties an increase of the debt limit to adoption by Congress of a concurrent budget resolution that satisfies the required ratio and prescribes how the House and Senate votes on the budget are treated as passage of a joint resolution increasing the debt limit.
When Congress adopts a concurrent resolution on the budget that satisfies the required ratio (as determined by the CBO), the Clerk of the House must prepare an engrossed joint resolution in the prescribed form to increase the statutory debt limit to the amount specified by that concurrent resolution; the budget votes are treated as votes on the joint resolution and it is transmitted between Houses as passed.
Specifies the required form of the joint resolution (no preamble; specified title template; resolving clause that fills in the dollar amount increase).
Defines how to determine the dollar amount in the joint resolution: it must equal the amount necessary to raise the total debt subject to limit on the date of enactment to the amount estimated for the last day of the budget year covered by the concurrent resolution.
Provides a rule of construction clarifying that nothing in the section limits the power of either House to consider other bills or joint resolutions that would change the statutory debt limit, or the rights of Members, Delegates, the Resident Commissioner, or committees regarding introduction and consideration of such measures.
Primary actors affected:
Members of Congress: The bill changes routine congressional business by imposing new deadlines and fast‑track procedures. Committees will have statutory timelines to review plans and report legislation; floor calendars may be compressed to meet expedited consideration rules.
The President and Executive Branch: Gains a temporary tool to increase the debt limit via written notification when Congress fails to pass a qualifying budget resolution. The Executive must prepare and transmit debt‑reduction plans and rely on CBO scoring and committee cooperation for implementation.
Congressional Budget Office and committees: CBO workload will increase because timely scoring is required for presidential plans; multiple committees must review implementing legislation on a compressed schedule.
Treasury, financial markets, and bond investors: By creating automatic and temporary paths to raise the debt limit, the measure aims to lower short‑term default risk and market disruption. Markets will monitor whether temporary increases become contested by disapproval resolutions or litigation.
Broader fiscal policy and program stakeholders: Because the bill conditions debt increases on budget resolutions and a stringent debt‑reduction target for certain plans, it will shape negotiations over spending and revenue policies. Achieving the required ratio may require major entitlement or revenue changes; such proposals would affect beneficiaries, program administrators, and taxpayers if enacted.
Practical and legal effects:
Political incentives change: Congress may face greater pressure to adopt a qualifying budget resolution on schedule. At the same time, giving the President temporary authority may reduce the immediate bargaining leverage Congressional negotiators hold during debt crises.
Implementation burden and timing risk: Expedited procedures compress review, reducing committee time for hearings and stakeholder input. Rapid CBO scoring requirements could create operational strain.
Potential constitutional or legal questions: The delegation of a limited debt‑raising authority to the President and the statutory fast‑track processes could be subject to legal challenge on separation‑of‑powers or appropriation principles; courts may be asked to rule if disputes arise.
Overall impact: The bill is designed to reduce the chance of an immediate federal default by automating or temporarily enabling debt‑limit increases, while forcing faster substantive votes on debt‑reduction proposals that meet a concrete fiscal target. It shifts political dynamics and operational workloads across Congress, the CBO, and Treasury and could prompt legal challenges.
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Referred to the Committee on Rules, and in addition to the Committees on Ways and Means, and the Budget, 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.
Introduced February 6, 2025 by Scott Peters · Last progress February 6, 2025
Referred to the Committee on Rules, and in addition to the Committees on Ways and Means, and the Budget, 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.
Introduced in House