The enactment of HB 4178 would tighten budget parameters significantly, impacting how discretionary funding is allocated across various federal programs. It would require federal agencies to operate within the established limits, potentially leading to cuts in spending for some programs if they exceed the allotted budget. Proponents of the bill argue that this framework is necessary to ensure sustainable fiscal practices and to curb the rising national debt, which can have long-term implications for economic stability.
Summary
House Bill 4178, known as the 'Enforce the Caps Act,' seeks to amend the Balanced Budget and Emergency Deficit Control Act of 1985 by establishing discretionary spending limits for the fiscal years 2026 through 2029. The bill sets specific cap amounts for budget authority in the discretionary category, aiming to promote fiscal responsibility and limit government overspending during these years. The proposed limits are $1.62 trillion for 2026, increasing slightly each year to $1.67 trillion by 2029.
Contention
However, the bill has seen notable opposition from various groups who argue that strict spending caps could underfund essential services and programs. Critics highlight concerns that imposing such limits may disproportionately affect vulnerable populations who rely on federally funded programs. They argue that the measures could lead to inadequate support for public services, education, and healthcare, necessitating a discussion on how such caps could be implemented without sacrificing essential government functions.
Establishing the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034.
Nickel Plan Act This bill modifies the federal budget process to establish and enforce new spending caps. The bill establishes an outlay cap (less net interest payments) for FY2024 of $5.953 trillion, less 5%. For each year from FY2025-FY2027, the outlay cap is 5% less than the previous year's outlay cap. For FY2028 and subsequent years, total outlays (including net interest payments) may not exceed 17.5% of the gross domestic product (GDP) for that year as estimated by the Office of Management and Budget (OMB). Beginning in FY2029, total projected outlays for any year may not be less than the total projected outlays for the preceding year. The OMB must enforce the spending caps using a sequester to eliminate any excess spending through automatic cuts. The bill eliminates the existing exemptions from sequestration. If the OMB projects a sequester, the congressional budget committees may report a resolution directing congressional committees to change existing law to achieve the spending reductions necessary to meet the outlay limits. The bill also establishes procedures for Congress to enforce the outlay caps established by this bill.
A concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034.