All Roll Calls
Yes: 377 • No: 153
118-hr-3746118th CongressWALLET
Fiscal Responsibility Act of 2023
Sponsored By: Representative McHenry, Patrick T. [R-NC-10]
Became Law
Summary
The Fiscal Responsibility Act of 2023 sets new federal spending limits and forces broad rescissions to tighten budget control while also suspending the debt limit and changing rules for permits and benefit programs. It bundles discretionary caps, targeted new funds, program changes for SNAP and TANF, NEPA permitting reforms, and a temporary debt limit suspension into one law.
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 2 benefits, 2 costs, 7 mixed.
More funding for veterans’ toxic exposure care
The law funds the Cost of War Toxic Exposures Fund. It provides $20.268 billion for Oct 1, 2023–Sep 30, 2028 and $24.455 billion for Oct 1, 2024–Sep 30, 2029. The money pays for care, related benefits, and research for veterans harmed by environmental hazards.
Debt limit suspended through January 1, 2025
The federal debt limit is suspended from enactment through January 1, 2025. On January 2, 2025, the limit rises only to cover obligations needed to pay commitments due before that date. Treasury cannot issue extra debt during the suspension just to raise cash above normal levels. This helps keep federal payments and benefits on time.
Student loan payments restart, no extensions
Federal student loan payments and interest restart 60 days after June 30, 2023. You must make monthly payments again and interest accrues. The Education Department cannot extend the pause unless Congress passes a new law.
Cancels unused funds across many programs
The law cancels unobligated balances in many prior accounts as of enactment. It rescinds funds from housing programs like tenant‑based and project‑based rental assistance, housing for the elderly and people with disabilities, and Native American housing. It also rescinds some small business disaster loan and public health balances. In addition, it cancels $1.389525 billion in unused IRS funds from the Inflation Reduction Act.
Faster federal environmental reviews
The law speeds up environmental reviews. Environmental impact statements are usually limited to 150 pages (300 for very complex projects) and 2 years. Environmental assessments are limited to 75 pages and 1 year. Agencies can rely on program-wide reviews for 5 years, and sponsors may help draft documents under agency oversight. CEQ will study a one‑stop permitting website with $500,000.
Mountain Valley Pipeline permits fast-tracked
The law ratifies and directs federal permits for the Mountain Valley Pipeline. Agencies must issue and keep needed approvals, and the Army Secretary must act within 21 days of enactment. Only the D.C. Circuit can hear related cases. Conflicting laws do not block these approvals.
More funds for reviews and new disaster cap
The law adds $1.578 billion in FY2024 and $1.63 billion in FY2025 for Social Security disability reviews. It adds $604 million in FY2024 and $630 million in FY2025 for health care fraud control, and $265 million in FY2024 and $271 million in FY2025 for reemployment services. It also caps some disaster funding at 5% of the prior 10 years’ appropriations, net of rescissions.
$22B for Commerce efficiency projects
The law provides $22 billion to the Commerce Department’s Nonrecurring Expenses Fund for FY2023, available until spent. It sets $11 billion for FY2024 programs and $11 billion for FY2025. The money cannot be transferred, and reporting rules apply. These amounts are not placed on statutory PAYGO scorecards.
Two-year spending caps and agency offsets
The law caps discretionary budget authority for two years. FY2024: $886.349 billion for security and $703.651 billion for nonsecurity. FY2025: $895.212 billion for security and $710.688 billion for nonsecurity. Agencies must propose offsets for administrative actions that increase direct spending, with small actions exempt; these rules end December 31, 2024. Budget chairs must publish allocation statements, and sequestration references update to 2025.
SNAP work rules: more exemptions, new caps
SNAP exempts more people from work rules: under 18; over 51 in FY2023, over 53 in FY2024, and over 55 in FY2025 and later. It also exempts homeless people, veterans, and certain foster youth. States apply these changes starting 90 days after enactment, and they end October 1, 2030. At the same time, states can grant exemptions only up to 8% of covered adults on average each month and cannot save unused exemptions. USDA must post state waiver requests and approvals within 30 days of enactment.
TANF shifts to work results and pilots
HHS can run a TANF pilot in up to five states starting October 1, 2024 to test job and family result benchmarks. States must report standard job and earnings outcomes starting in FY2025. Beginning October 1, 2025, HHS stops counting "small checks" under $35 in participation rates, and the caseload reduction credit benchmark year shifts to 2015. If a pilot state misses goals two years in a row, it must fix the plan or adjust targets.
Sponsors & CoSponsors
Sponsor
McHenry, Patrick T. [R-NC-10]
NC • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
senate vote • 6/1/2023
On Passage of the Bill H.R. 3746
Yes: 63 • No: 36
house vote • 5/31/2023
On Passage
Yes: 314 • No: 117