Spending Safeguard Act
Sponsored By: Representative Foxx, Virginia [R-NC-5]
Introduced
Summary
This bill would create automatic spending safeguards for direct spending programs that lack a dollar-level authorization. It would require the Office of Management and Budget (OMB) to set numerical limits, publish a public scorecard, and trigger obligation limits if programs are projected to exceed their caps.
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- Households and benefit recipients could face interrupted payments or limits if a program hits its safeguard and an obligation limitation takes effect 30 days after a breach is found. Agencies must warn participants that funding availability could be affected.
- The OMB Director would have 90 days to set a safeguard for any newly enacted or reauthorized direct spending program that lacks an explicit dollar authorization. Safeguards are based on the program's estimated 6-year cost.
- Safeguard amounts would be set at 120 percent of estimated cost for certain defense, health, income-security, and veterans budget areas and 110 percent for other areas. Medicare and Social Security are excluded.
- Treasury must send monthly spending reports to OMB within 7 days of each month end and the Director must send breach reports to Budget Committees within 15 days. The President's Budget must show the relationship between program spending and the applicable limit.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 3 costs, 0 mixed.
OMB can stop program spending
This bill would make OMB monitor spending against each cap and warn Congress if a program will hit its cap within six months. The Director would have 15 days to report that projection to the Budget Committees and program committees. If OMB determines a program has reached its cap, then 30 days after that determination agencies could not obligate new funds to run the program and OMB would report the obligation limitation to Congress.
OMB sets caps on new programs
This bill would require the OMB Director to set a spending cap for any new or reauthorized direct spending program that does not have a dollar authorization. The cap would equal the Director's estimated six-year cost times 120% for programs in budget functions 050, 550, 600, or 700, and 110% for other programs. OMB would have 90 days after the program is enacted or reauthorized to set the cap. Medicare and Social Security would be excluded from these rules.
Agencies must tell participants about caps
This bill would require agencies that run a listed direct spending program to put a notice in contracts, benefit offers, or other materials given to participants. The notice must say the program is subject to a spending safeguard limitation and that the cap could affect future availability of funds to pay benefits. This is meant to give participants clearer information about funding risk.
Public scorecard and budget reports
This bill would require OMB to keep a public scorecard that shows spending for each direct spending program subject to a safeguard. Treasury would send OMB a monthly spending report within 7 days after each month ends, starting after a program's first full month. Every six months OMB would report to the House and Senate Budget Committees on how actual spending compares to each program's cap. The President's Budget would also include an annual item showing each program's spending versus its cap.
No new money for carryout
This bill would state that no additional funds are authorized to carry out the bill. That means Congress would need to provide any money needed to run the new reporting, scorecard, or cap enforcement rules. The provision does not itself change benefit formulas.
Sponsors & CoSponsors
Sponsor
Foxx, Virginia [R-NC-5]
NC • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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