Rep. Ted Budd Sponsors Federal Debt Emergency Control Act

Washington, D.C. -- Rep. Ted Budd (R-NC) has co-sponsored H.R.4869, the Federal Debt Emergency Control Act. 

The bill would require the Office of Management and Budget to declare a “Federal Debt Emergency” in any fiscal year where the federal debt exceeds 100% of the Gross Domestic Product (GDP). An emergency declaration would trigger automatic actions to reduce the debt level under 100% of GDP.

The bill was originally introduced by Rep. Jim Banks (R-IN) in the House and Sen. Rick Scott (R-FL) in the Senate.


Rep. Budd said in a statement:

“Our national debt currently stands at nearly $30 trillion. That works out to an astounding $227,000 per taxpayer. Washington politicians often claim these are just numbers on a page as they continue their rampant spending. But, the reality is that Washington's out of control spending has created a debt crisis. I’m proud to join Rep. Jim Banks and Sen. Rick Scott on a legislative solution to help get our country’s fiscal house in order.”


Background:

  • The bill requires the Office of Management and Budget to declare a “Federal Debt Emergency” in any fiscal year where the federal debt exceeds 100% of that year’s (GDP).

  • This emergency designation would trigger several provisions to help control and reduce the federal debt to levels below 100% of GDP, including:

    • Terminating any unobligated funding from the American Rescue Plan Act, and any previous stimulus bills, and sending it back to the Treasury General Fund immediately for deficit reduction.

    • Requiring all legislation that increases the federal deficit, as determined by the Congressional Budget Office, to carry its own offsets. If it does not, the legislation shall be considered out of order and will require at least two-thirds of all Senators to vote to increase federal debt before even being able to consider the bill.

    • Fast-tracking any legislation that would reduce the federal deficit by at least 5 percent over 10 years.

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