Balanced Budget Accountability Act
Balanced Budget Accountability Act
Plain Language Summary
# Balanced Budget Accountability Act Summary **What the Bill Would Do** The Balanced Budget Accountability Act would withhold the salaries of all Members of Congress if their chamber fails to pass a balanced budget. Specifically, if the Office of Management and Budget (OMB) doesn't certify that a chamber has adopted a balanced budget by April 16, that chamber's members' paychecks would be placed in escrow (held in reserve) until a balanced budget is passed. The bill defines a balanced budget as one where total government spending doesn't exceed total revenue and spending stays under 18% of the nation's gross domestic product. The bill also requires that any increases to government revenues (taxes) need approval from three-fifths of each chamber—a higher threshold than normal legislation. **Who It Affects and Current Status** This bill directly impacts Members of Congress, who could lose access to their salaries during the legislative session.
It indirectly affects all federal budget planning and decision-making. The bill is currently in committee, meaning it has not yet been voted on by either chamber of Congress. Sponsored by Senator Steve Daines (R-MT), it represents an attempt to create financial consequences to incentivize lawmakers to balance the federal budget.
CRS Official Summary
Balanced Budget Accountability ActThis bill withholds Members of Congress's salaries in each chamber if the Office of Management and Budget (OMB) does not certify that the chamber has adopted a balanced budget. The bill also requires that revenue increases be agreed upon by an affirmative three-fifths vote in each chamber.Balanced budget means a concurrent budget resolution providing that for FY2035 and each succeeding fiscal year to which the resolution applies total outlays do not exceed total receipts and are not more than 18% of the projected gross domestic product for such fiscal year. For the 119th Congress, if OMB does not certify that a chamber has adopted a balanced budget for the next fiscal year before April 16, salaries of Members of that chamber must be held in escrow until passage of a balanced budget or, if none is passed, the conclusion of the 119th Congress.For subsequent Congresses, if OMB does not certify that a chamber has adopted a balanced budget for the next fiscal year before April 16, each Member of that chamber shall be paid at the rate of $1 annually for the remainder of the calendar year.
Latest Action
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.