{"bills":[{"photos":{"featured":"https://assets.causes.com/bill/photo/hr5637-114/featured_one-percent-spending-reduction-act-of-2016-1470210230.jpg","featured_large":"https://assets.causes.com/bill/photo/hr5637-114/featured_large_one-percent-spending-reduction-act-of-2016-1470210230.jpg","shareable":"https://n.causes.com/share-images/bills/hr5637-114.png"},"introduced_on":"2016-07-06","title_override":"The Penny Plan: Should Federal Spending be Cut by 1 Percent for Five Years then Capped?","summary_override":"

This bill would establish new spending caps for the federal budget by requiring one percent of the budget to be cut each of the next five years (through fiscal year 2021), after which total spending would be limited to 18 percent of U.S. GDP. It wouldn’t mandate spending cuts in any particular area, but it would give Congress the ability to make targeted cuts as long as total spending is reduced by one percent each year.

Starting in fiscal year 2023, total projected spending could not be less than the previous year’s projection, meaning that the federal budget would stop shrinking, but its growth would be constrained by the 18 percent of GDP cap. If the U.S. economy were to enter a recession and shrink, the budget wouldn’t get smaller along with it, instead remaining at or above the level it had been the year prior.

The Office of Management and Budget (OMB) would be required to sequester funding that exceeds these budget caps through automatic cuts. Most existing exemptions from sequestration would be eliminated, other than interest payments on the national debt so as to avoid default.

If the OMB projects that a sequestration will occur, congressional budget committees would be allowed to report a resolution that requires congressional committees to change existing law to make the needed spending cuts.

","official_title":"To prevent a fiscal crisis by enacting legislation to balance the Federal budget through reductions of discretionary and mandatory spending.","short_title":"One Percent Spending Reduction Act of 2016","popular_title":null,"short_summary":"One Percent Spending Reduction Act of 2016 \n\nThis bill amends the Balanced Budget and Emergency Deficit Control Act of 1985 to establish and enforce new spending caps.\n\nThe bill establishes an outlay cap (less net interest payments) for FY2017 of $3.645 trillion, less 1%. For each year from FY2018-FY2021, the bill reduces the outlay cap by 1% of the previous year's outlay cap.\n\nFor FY2022 and subsequent years, total outlays may not exceed 18% of the gross domestic product (GDP) for that year as estimated by the Office of Management and Budget (OMB). Beginning in FY2023, total projected outlays may not be less than the total projected outlays for the preceding year.\n\nThe OMB must enforce the spending caps using a sequestration to eliminate any excess spending through automatic cuts. The bill eliminates most of the existing exemptions from sequestration, with the exception of interest payments on the debt.\n\nIf the OMB projects a sequestration, the congressional budget committees may repor...","summarized":true,"cost":null,"cost_commentary":"A CBO cost estimate is unavailable.","impact":"Federal agencies and other entities receiving funds from the government; Congress; and the OMB.","argument_for":"Cutting federal spending is a necessity if the U.S. is going to avoid descending into a debt crisis. Spending one percent less on the federal government for five years will allow the budget to balance and stay that way. It’s a sensible approach that will put the nation’s fiscal house in order.","argument_against":"Reducing federal spending by one percent per year for five years will have a negative impact on the economy and the government’s ability to meet its obligations. Rather than cutting spending, a tax increase could bring in more revenue to help reduce the deficit and the national debt.","bill_type":"hr","published":true,"type":"FederalBill","id":"hr5637-114","bill_id":"hr5637-114","formal_id":"H.R. 5637","chamber":"house","congress":114,"last_action_at":"2016-07-06T00:00:00.000Z","active":false,"enacted":false,"enacted_at":null,"vetoed":false,"last_vote_at":null,"debated_on":null,"congress_url":"https://www.congress.gov/bill/114th/house-bill/5637","plain_text_url":"https://www.gpo.gov/fdsys/pkg/BILLS-114hr5637ih/html/BILLS-114hr5637ih.htm","shareable_image_url":"https://n.causes.com/share-images/bills/hr5637-114.png","congress_full_text_url":"https://www.congress.gov/bill/114th/house-bill/5637/text","is_current_congress":false,"last_version_on":"2016-07-06","related_bill_ids":["s3140-114"],"progress":"Introduced","house_passage_result":false,"senate_passage_result":false,"position_count":366,"committees":[{"name":"Committee on the Budget","chamber":"house","committee_id":"HSBU","subcommittee":false},{"name":"Committee on Rules","chamber":"house","committee_id":"HSRU","subcommittee":false}],"links":{"rollCalls":"/api/roll_calls?bill_id=hr5637-114","details":"/api/bills/hr5637-114/details","sharingMessage":"/api/sharing_messages/hr5637-114","positionsFor":"/api/bills/hr5637-114/positions/for","positionsAgainst":"/api/bills/hr5637-114/positions/against"},"upcoming":false,"cosponsors_count":9,"slug":"hr5637-114-one-percent-spending-reduction-act-of-2016","latest_chamber_votes_id":null,"official_url":null,"target_video":true,"following":false,"vote_count":2361,"yea_vote_count":1121,"nay_vote_count":1229,"passed_house":false,"passed_senate":false,"vote_id":null,"my_position_id":null,"topic_ids":["economy","government"],"issue_ids":["economy","government"],"sponsor_id":182}],"votes":[],"issues":[{"id":"economy","name":"Economy","slug":"economy","description":"The US Economy is heavily impacted by Federal legislation. Here you can find bills encompassing US monetary policy, the US Federal Budget, overall government spending, appropriations and how we handle the US federal debt and state finances. ","page_title":"Legislation related to the US Economy, monetary policy, the federal budget and government spending - Vote on Bills, Stay informed, Hold Your Reps Accountable","icons":{"black":"https://assets.causes.com/issue/icon/economy/black_economy-1429042041.svg","grey":"https://assets.causes.com/issue/icon/economy/grey_economy-1429042041.svg","white":"https://assets.causes.com/issue/icon/economy/white_economy-1429042041.svg"},"cover_image_url":null,"is_following":false},{"id":"government","name":"Government","slug":"government","description":"Federal legislation related to the operations of the US Federal Government. 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NY has caps on local government budgets and cap is now below 1%. What government should do is have a thorough review of every program personnel, budgets Etc and get rid of what is not effective and not needed. Setting arbitrary cuts will only continue to protect those programs.","show_argument_for":false,"show_argument_against":true,"upvote_count":0,"upvotes_for_count":null,"upvotes_against_count":0,"has_upvoted":false,"endorsement_count":0,"links":{"self":"https://www.causes.com/positions/c1b75368-367f-4097-a654-b06bf5142b2d"},"body":"This is like sequestration and will be a pathetic joke. NY has caps on local government budgets and cap is now below 1%. What government should do is have a thorough review of every program personnel, budgets Etc and get rid of what is not effective and not needed. Setting arbitrary cuts will only continue to protect those programs.","stance":"nay","created_at":"2016-08-13T11:50:32.610Z","shareable_image_url":"https://n.causes.com/share-images/positions/c1b75368-367f-4097-a654-b06bf5142b2d.png","note_color":null,"note_text":null,"bill_id":"hr5637-114","user_id":"BZejojmY","endorser_ids":[]}}

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The Penny Plan: Should Federal Spending be Cut by 1 Percent for Five Years then Capped?