Maximizing America's Prosperity Act of 2021
This bill establishes annual spending limits that are equal to specified percentages of potential gross domestic product (GDP). Potential GDP generally refers to the GDP that would occur if the economy were at full employment without inflation. The spending limits apply to all budget authority and outlays of the federal government excluding net interest.
The bill establishes procedures for enforcing the spending limits, including requirements for sequestration (i.e., automatic spending cuts) and for the President's budget and congressional budget resolutions to comply with the limits.
The bill also requires at least 1% of total discretionary spending for each year to be reserved for emergencies.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2675 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2675
To cap noninterest Federal spending as a percentage of potential GDP to
right-size the Government, grow the economy, and balance the budget.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 20, 2021
Mr. Brady (for himself, Mr. Hern, Mr. Banks, Mr. Crenshaw, Mr. Williams
of Texas, Mr. Weber of Texas, Mr. Arrington, Mr. Cawthorn, Mr. Jackson,
Mr. Gooden of Texas, Mr. Estes, Mr. Taylor, Mr. McCaul, and Mr.
Sessions) introduced the following bill; which was referred to the
Committee on the Budget, and in addition to the Committee on Rules, 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
_______________________________________________________________________
A BILL
To cap noninterest Federal spending as a percentage of potential GDP to
right-size the Government, grow the economy, and balance the budget.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This title may be cited as the ``Maximizing America's Prosperity
Act of 2021''.
SEC. 2. TOTAL SPENDING LIMITS.
(a) Total Spending Limits.--Section 251 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 901) is amended to read
as follows:
``SEC. 251. TOTAL SPENDING LIMITS.
``(a) Projections.--
``(1) OMB report.--OMB shall prepare a report comparing
projected total spending under section 257 and the total
spending limits in subsection (c), and include such report in
the budget as submitted by the President annually under section
1105(a) of title 31, United States Code.
``(2) CBO report.--CBO shall prepare a report comparing
projected total spending under section 257 and the total
spending limits in subsection (c), and include such report in
the CBO annual baseline and reestimate of the President's
budget.
``(3) Inclusion in spending reduction orders.--Reports
prepared pursuant to this subsection shall be included in a
spending reduction order issued under subsection (b).
``(b) Spending Reduction Order.--
``(1) In general.--Within 15 calendar days after Congress
adjourns to end a session, there shall be a spending reduction
order under section 254(f)(4).
``(2) Calculation of spending reduction.--Subject to
paragraph (3), each non-exempt budget account shall be reduced
by a dollar amount calculated by multiplying the enacted level
of sequestrable budgetary resources in that account at that
time by the uniform percentage necessary to achieve the
required automatic spending reduction.
``(3) Limitation on reduction.--No budget account shall be
subject to a spending reduction of more than 5 percent of the
budgetary resources of the budget account.
``(c) Fiscal Years of the Total Spending Period.--The total
spending limit for each fiscal year shall be as follows:
``(1) Fiscal year 2022: 18.9 percent of potential GDP.
``(2) Fiscal year 2023: 18.6 percent of potential GDP.
``(3) Fiscal year 2024: 18.2 percent of potential GDP.
``(4) Fiscal year 2025: 18.4 percent of potential GDP.
``(5) Fiscal year 2026: 18.4 percent of potential GDP.
``(6) Fiscal year 2027: 18.2 percent of potential GDP.
``(7) Fiscal year 2028: 18.6 percent of potential GDP.
``(8) Fiscal year 2029: 17.9 percent of potential GDP.
``(9) Fiscal year 2030: 17.7 percent of potential GDP.
``(10) Fiscal year 2031 and subsequent fiscal years: 17.5
percent of potential GDP.
``(d) Reduction for Unfunded Federal Mandates.--The amount
determined under subsection (c) with respect to each fiscal year shall
be reduced by an amount equal to the amount of the unfunded direct
costs with respect to such fiscal year of Federal mandates (as such
terms are defined in section 421 of the Congressional Budget Act of
1974 (2 U.S.C. 658)) enacted after the date of the enactment of the
Maximizing America's Prosperity Act of 2021. Such amount shall not be
treated as being less than zero with respect to any fiscal year.''.
(b) Definitions.--Section 250(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)) is amended by
adding at the end the following:
``(22)(A) The term `total spending' means all budget
authority and outlays of the Government excluding net interest.
``(B) The term `total spending limit' means the maximum
permissible total spending of the Government set forth as a
percentage of estimated potential GDP specified in section
251(c).
``(23) The term `potential GDP' means the gross domestic
product that would occur if the economy were at full
employment, not exceeding the employment level at which
inflation would accelerate.''.
(c) Conforming Amendments.--Part C of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is
amended--
(1) in section 254 (2 U.S.C. 904)--
(A) in subsection (a), in the table, by inserting
``and spending reduction'' after ``sequestration'' each
place it appears;
(B) in subsection (c)--
(i) in the subsection heading, by inserting
``and Spending Reduction'' after
``Sequestration'';
(ii) in paragraph (1), by striking
``discretionary, pay-as-you-go, and deficit
sequestration'' and inserting ``pay-as-you-go
and deficit sequestration and regarding
spending reduction''; and
(iii) by striking paragraph (2) and
inserting the following:
``(2) Spending reduction report.--The preview reports shall
set forth for the budget year estimates for each of the
following:
``(A) Estimated total spending.
``(B) Estimate of potential GDP.
``(C) The spending reduction necessary to comply
with the total spending limit under section 251(c).'';
(C) in subsection (e)--
(i) in the subsection heading, by inserting
``and Spending Reduction'' after
``Sequestration''; and
(ii) by inserting ``and spending
reduction'' after ``sequestration'' each place
it appears; and
(D) in subsection (f)--
(i) in the subsection heading, by inserting
``and Spending Reduction'' after
``Sequestration'';
(ii) in paragraph (1), by inserting ``and
spending reduction'' after ``sequestration'';
(iii) by striking paragraph (2);
(iv) by redesignating paragraphs (3), (4),
and (5) as paragraphs (2), (3), and (4),
respectively; and
(v) in paragraph (2), as so redesignated--
(I) in the heading, by inserting
``and spending reduction '' before ``
reports'';
(II) in the first sentence, by
inserting ``spending reduction report''
after ``preview reports''; and
(III) by striking the second
sentence and inserting the following:
``In addition, these reports shall
contain, for the budget year, for each
account to be sequestered or subject to
a spending reduction, as the case may
be, estimates of the baseline level of
sequestrable or reducible budgetary
resources and resulting outlays and the
amount of budgetary resources to be
sequestered or reduced and resulting
outlay reductions.'';
(vi) in paragraph (3), as so redesignated,
by striking ``sequesterable'' and inserting
``sequestrable or reducible''; and
(vii) in paragraph (4), as so
redesignated--
(I) by inserting ``or spending
reduction'' after ``final
sequestration'';
(II) by inserting ``or spending
reduction'' before ``is required''; and
(III) by inserting ``or spending
reductions, as the case may be,'' after
``sequestrations'';
(2) in section 257(a) (2 U.S.C. 907(a)), by inserting
``total spending,'' after ``outlays,''; and
(3) in section 258C(a)(1) (2 U.S.C. 907d(a)(1))--
(A) by inserting ``or spending reduction'' after
``sequestration'' each place the term appears; and
(B) by striking ``252 or 253'' and inserting ``251,
252, or 253''.
(d) Table of Contents.--The table of contents in section 250(a) of
the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
900(a)) is amended by striking the item relating to section 251 and
inserting the following:
``Sec. 251. Total spending limits.''.
SEC. 3. ALLOCATION FOR EMERGENCIES.
(a) In General.--Section 302(a) of the Congressional Budget Act of
1974 (2 U.S.C. 633(a)) is amended by adding at the end the following
new paragraph:
``(6) Allocation to the committees on appropriations for
emergencies.--Of the amounts of new budget authority and
outlays allocated to the Committees on Appropriations for the
first fiscal year of the concurrent resolution on the budget, 1
percent shall be designated as for emergencies and may be used
for no other purpose.''.
(b) Budget of the President.--Section 1105(a)(14) of title 31,
United States Code, is amended by inserting ``, including an amount for
emergency spending not less than 1 percent of all discretionary
spending for that year'' before the period.
SEC. 4. PRESIDENT'S BUDGET SUBMISSIONS TO CONGRESS.
Section 1105 of title 31, United States Code, is amended by adding
at the end the following new subsection:
``(i)(1) The budget transmitted pursuant to subsection (a) shall be
in compliance with the statutory cap on Federal spending set forth in
the Maximizing America's Prosperity Act of 2021.
``(2) Any budget transmitted pursuant to subsection (a) or
paragraph (1) for a fiscal year shall include a prioritization of
spending (as described in section 256(a)(2) of the Balanced Budget and
Emergency Deficit Control Act of 1985), by ranking all programs,
projects, and activities of the Government in five categories from
the--
``(A) vital to the general welfare and requires national
policy;
``(B) important to the general welfare and requires
national policy;
``(C) important to the general welfare and benefits from
national policy;
``(D) advances the general welfare and can largely be
accomplished by non-Federal entities; and
``(E) does not clearly advance the general welfare and may
be unsuited for national policy;
with not less than 12 percent of total spending falling into any one
category.''.
SEC. 5. CONCURRENT RESOLUTIONS ON THE BUDGET.
(a) In General.--Section 312 of the Congressional Budget Act of
1974 is amended by adding at the end the following new subsection:
``(g) Statutory Cap on Total Federal Spending Point of Order.--It
shall not be in order in the House of Representatives or the Senate to
consider any concurrent resolution on the budget that sets forth total
Federal outlays for any fiscal year in excess of those set forth for
that fiscal year in section 252A of the Balanced Budget and Emergency
Deficit Control Act of 1985.''.
(b) Conforming Amendment.--Subsections (c)(2) and (d)(3) of section
904 of the Congressional Budget Act of 1974 are each amended by
striking ``and 312(c)'' and inserting ``312(c), and 312(g)''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Budget, and in addition to the Committee on Rules, 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.
Referred to the Committee on the Budget, and in addition to the Committee on Rules, 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.
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