Fiscal Stability Act
Published Thursday, November 9, 2023
Senators introduced a bill to create a bipartisan debt commission, signaling bicameral interest in a measure emphasized recently by the House.
The bill, offered by Sens. Mitt Romney (R-UT) and Joe Manchin (D-WV), would create a bipartisan, bicameral panel tasked with recommending measures to stabilize the federal debt, which now exceeds $33.6 trillion—more than double what it was just 10 years ago, and improve the solvency of trust funds that support major entitlement programs. The commission would look at entitlement reforms, tax revenues, and other factors that impact the deficit/debt. The commission's proposal would get expedited consideration in the House and Senate.
Entitlement programs are currently the most significant factor contributing to deficit spending.
The federal government closed out its 2023 FY in September, having spent $659 billion on interest payments alone, up from $476 billion in fiscal 2022 and $352 billion in fiscal 2021.
Note: The rapid increase in interest is not due to "out-of-control spending." It is due to the Fed rate hikes. Higher rates mean higher interest payments.
“It is immoral and unacceptable for my generation to keep adding to the national debt, expecting our grandchildren to foot the bill for our benefits for the rest of their lives,” Senator Romney said. “As a country, we must get serious about the national debt, which is why Senator Manchin and I are coming together to propose a new fiscal commission tasked with coming up with legislative solutions to improve the Federal Government’s fiscal health and get a handle on the debt before it’s too late.”
“Our fiscal house is not in order and it is past time we get serious about addressing the unsustainable path our national debt is on,” said Senator Manchin. “I am proud to introduce this commonsense legislation with my friend and colleague Senator Romney that would create a bipartisan, bicameral fiscal commission to identify comprehensive solutions to bring us back to a sustainable fiscal outlook. Our national debt weakens our economic and national security and jeopardizes our leadership on the international stage. If we cannot come together to rein in this looming crisis, we will be failing the American people and harming the well-being of our future generations.”
Background:
- Legislation would establish a 16-member bipartisan, bicameral commission consisting of 12 elected officials and four outside experts.
- The Speaker of the House, House Minority Leader, Senate Majority Leader, and Senate Minority Leader each appoint four individuals to the Commission, of which three must be members of their respective chambers and one must be an outside expert.
- The Commission would produce a report and propose a package of legislative solutions to improve the long-term fiscal condition of the Federal Government, stabilize the ratio of public debt to GDP within a 15-year period, and improve solvency of Federal trust funds over a 75-year period.
- The Commission would be required to vote on approval of the report and legislative language by May 1, 2025.
- Any report or legislative language produced by the Commission must be approved by a majority of the 12 elected official members, with at least three being from each party.
- If the Commission approves proposed legislative language, it would receive expedited consideration in both chambers.
- While 60 votes would be required to invoke cloture prior to final passage in the Senate, only a simple majority would be needed for the motion to proceed, which would be privileged.
