Dollar-for-Dollar Deficit Reduction Act

Key Points

• This bill would require that any increase or suspension of the national debt limit be matched dollar-for-dollar with spending cuts over the following 10 years. The president would have to submit specific spending reduction proposals whenever requesting a debt limit increase.
• The Treasury Secretary would be required to issue a 60-day warning before the country hits the debt ceiling, alerting key congressional committees and explaining when extraordinary measures may be needed to keep the government running.
• Congress would be blocked from even considering a debt limit increase or suspension unless the bill includes matching spending cuts. Overriding this rule in the Senate would require a supermajority of 60 votes.
• The bill includes anti-gimmick protections: interest savings cannot count toward the required spending cuts, timing shifts that move costs outside the 10-year window are banned, and the CBO must post a public cost estimate at least 24 hours before any vote.
• Introduced by Senators Barrasso and Lummis, the bill was referred to the Senate Budget Committee. If enacted, it would fundamentally change how Congress handles future debt limit negotiations, creating a structural bias toward spending reductions whenever borrowing authority is extended.

Votes

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Related Bills

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