Expressing the sense of the House of Representatives that the United States should reduce and maintain the Federal unified budget deficit at or below 3 percent of gross domestic product.
Summary
House Resolution 981 expresses the sense of the House of Representatives that the United States should reduce and maintain the Federal unified budget deficit at or below 3 percent of gross domestic product (GDP). The resolution sets a target for deficit reduction by the end of fiscal year 2030 and encourages further deficit reduction to achieve a balanced budget. It also outlines responsibilities for the President, congressional committees, and the Congressional Budget Office (CBO) to support this goal.
Expected Effects
If enacted, this resolution would likely lead to increased scrutiny of federal spending and revenue policies. Congressional committees would be tasked with recommending enforcement options and changes to House rules to ensure the deficit target is met. The CBO would also be required to include information on how legislation affects the deficit target.
Potential Benefits
- Could lead to greater fiscal stability and reduced national debt.
- May lower interest rates and the cost of living.
- Could increase the government's flexibility to respond to fiscal emergencies.
- Might promote long-term economic growth.
- Could safeguard future generations from the burden of excessive debt.
Potential Disadvantages
- Achieving the deficit target may require cuts to government programs or tax increases, which could negatively impact certain sectors of the economy or segments of the population.
- Enforcement mechanisms could create political gridlock and make it more difficult to pass legislation.
- The focus on deficit reduction may divert attention from other important policy priorities.
- Economic forecasts are subject to change, and unforeseen circumstances could make it difficult to meet the target.
- Potential for budgetary gimmicks to meet targets without real change.
Constitutional Alignment
The resolution aligns with the Constitution's broad goals of promoting the general welfare and securing the blessings of liberty to ourselves and our posterity, as stated in the Preamble. Congress's power to tax and spend, as outlined in Article I, Section 8, implies a responsibility to manage the federal budget prudently. While the Constitution does not explicitly mandate a balanced budget, the resolution's aim to reduce the deficit reflects a concern for fiscal responsibility, which is arguably consistent with the Constitution's principles.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).