A bill to require agencies submit zero-based budgets.
A bill to require agencies submit zero-based budgets.
Plain Language Summary
# Summary of S. 181: Zero-Based Budget Requirements **What the bill would do:** This bill would require federal agencies to fundamentally change how they create budgets. Instead of simply adjusting last year's budget up or down, agencies would have to conduct a "zero-based budget" analysis—meaning they'd start from scratch each year and justify every expense.
Agencies would need to examine their current programs, consider alternative ways to operate, and rank programs by importance. Additionally, most agencies would be required to recommend spending cuts of at least 2% compared to the previous year, though the Department of Defense and the National Nuclear Security Administration would be exempt from this cut requirement. **Who it affects:** This legislation would impact all federal agencies and departments, which would need to change their budgeting processes. Ultimately, it could affect federal employees, program beneficiaries, and Congress, which would receive different budget proposals to review and approve. **Current status:** The bill was introduced in the 119th Congress by Senator James Risch (R-ID) and is currently under committee review, meaning it has not yet been voted on by the full Senate.
CRS Official Summary
This bill requires federal agencies to submit zero-based budgets to the Office of Management and Budget and the congressional budget committees. Under the bill, a zero-based budget is a systematic budget analysis in which managers (1) examine current objectives, operations, and costs; (2) consider alternative ways of carrying out programs or activities; and (3) rank different programs or activities by order of importance.The bill also requires federal agencies to submit recommendations to reduce spending by at least 2% from the previous year's levels. The Department of Defense and the National Nuclear Security Administration are exempt from this requirement.
Latest Action
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.