In the News
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Democratic Rep. Scott Peters and Republican Rep. Bill Huizenga of Michigan reintroduced a bipartisan bill last week to reform how Congress addresses the national debt limit, which was reinstated last month at $36.1 trillion.
The Responsible Budgeting Act would offer two plans to suspend the debt limit and aims to discourage “partisan brinksmanship,” according to a statement from Peters.
“The economy will implode overnight if we play politics with the full faith and credit of the U.S. government,” said Peters.
“If we can improve Congress’ approach to budgeting, we can ensure a stronger, more stable economic future.”
The first option in the bill would require a budget resolution with specific debt reduction measures, and a joint resolution that the president could sign to suspend the debt limit until the next fiscal year.
The second proposed solution would allow the president to suspend the debt ceiling with a written request, which Congress could vote to override within 30 days of its submission.
This suspension request would have to be submitted with a debt reduction proposal to drop the debt-to-GDP ratio that Congress would consider.
“Our nation’s $36 trillion debt crisis is fueling higher prices and making life increasingly unaffordable for families and small businesses today while also mortgaging our children and grandchildren’s future,” said Huizenga.
Peters has proposed the act in prior congressional sessions, with a different mix of sponsors, but it has not passed.
The federal debt limit was reinstated on Jan. 2 at $36.1 trillion, up from $31.4 trillion in 2023.
The timeframe for Congress to address the debt ceiling depends on the amount of federal tax revenue collected this spring, how fast supplemental disaster assistance funds are spent, additional federal spending legislation and the health of the economy, according to an analysis by the Bipartisan Policy Center.
Peters’ bill is also supported by a number of organizations and former politicians, including BPC Action, the American Enterprise Institute, the Economic Program at Third Way, the American Action Forum, the Committee for a Responsible Federal Budget, the Progressive Policy Institute and one-time Sen. Kent Conrad.