2025-01937NoticeWallet

PAYGO Report: Budget Balanced, No Drama Cuts This Time

Published Date: 1/30/2025

Notice

Summary

The 2024 PAYGO report shows no new budget problems for 2025, so no automatic spending cuts are needed. This affects lawmakers and the budget watchdogs who track government spending and revenue. The report covers laws passed in 2024 and confirms the budget stays balanced thanks to recent relief laws.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

No PAYGO Sequestration for 2025

The Office of Management and Budget reports that for the budget year (fiscal year 2025) there is no debit on the 5-year or 10-year PAYGO scorecards, so a sequestration order under the PAYGO Act is not required. The report covers laws enacted between January 3, 2024 (noon) and January 3, 2025 (11:57 a.m.) and notes that the American Relief Act, 2025 (Public Law 118-158) set the balances on both scorecards to zero.

IRS Funding Rescinded, Revenue Down

Division A of Public Law 118-47 included a rescission of $20.2 billion of funding for Internal Revenue Service enforcement and compliance activities. The report states that this rescission is estimated to result in decreases to revenue collections and that the resulting decrease is excluded from the PAYGO estimate under statutory scoring rules.

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Key Dates

Published Date
1/30/2025

Department and Agencies

Department
Independent Agency
Agency
Management and Budget Office
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