House Budget Committee Examines 3% Deficit-to-GDP Target

On March 26, 2026, the House Budget Committee held a hearing titled “The Best Metric to Reverse the Curse: A 3% Deficit-to-GDP Path to Fiscal Sustainability.” The discussion centered on how a 3% deficit-to-Gross Domestic Product (GDP) target can improve our fiscal health. Many members agreed that such a target is a reasonable goal and expressed a desire to work across the aisle on the issue. Witnesses included Committee for a Responsible Federal Budget president Maya MacGuineas, Jonathan Burks of the Bipartisan Policy Center, Kurt Couchman of Americans for Prosperity, and former Chair of the Council of Economic Advisors Jared Bernstein. MacGuineas’s written testimony can be found here.

Chairman Jodey Arrington (R-TX) began the hearing by noting that the 3% deficit-to-GDP target is a practical and achievable benchmark, one that economists, business leaders, and other experts support. He argued that adopting such a framework and working towards achieving it would provide flexibility to respond to future crises like wars or pandemics. He also underscored the urgency of addressing the nation’s debt, warning that a debt crisis would significantly harm our country.

In his remarks, Ranking Member Brendan Boyle (D-PA) stressed the need for lawmakers to address our rising debt and develop a plan to do so. He also raised concerns with the $4.7 trillion cost of the One Big Beautiful Bill Act (OBBBA) and the potential cost of the war with Iran. Notably, Boyle also stated that the witnesses provided some of the highest-quality testimony the committee has heard in the past year.

In her testimony, MacGuineas highlighted the broad support for the 3% target, which she framed as an ambitious but achievable goal. She discussed how interest payments are a significant burden, spending on seniors is greater than investment in younger generations, and that we need to make changes to revenue and spending to improve our fiscal health. MacGuineas closed by noting that the 3% target is ultimately a starting point that would allow lawmakers to begin to address the debt.

The hearing’s other witnesses broadly agreed that lawmakers need to address the debt as well. They also expressed an openness to the 3% target, though Couchman noted such a goal must be backed by enforcement mechanisms, and Bernstein argued that achieving the target should not come at the expense of the vulnerable.

There was a notable emphasis on bipartisanship throughout the hearing. For example, Representative Bill Huizenga (R-MI), co-chair of the Bipartisan Fiscal Forum (BFF), joined the hearing and highlighted how the entirety of BFF’s steering committee supports the 3% target resolution that he co-leads with fellow BFF steering members Representatives Scott Peters (D-CA), Mike Quigley (D-IL), and Lloyd Smucker (R-PA). Furthermore, Smucker stressed that the real significance of the 3% resolution is how it provides an opportunity for a bipartisan group of lawmakers to come together to recognize the issues posed by our debt. Numerous other members, including Arrington and Boyle, agreed that we need to address our growing debt as well.

In addition to the emphasis on bipartisanship, other members used their remarks to highlight different aspects of our fiscal challenges. In his comments, Peters connected the national debt and his support for a 3% target to generational issues, discussing how younger Americans, who already face significant financial challenges, will ultimately be left with the responsibility to pay off the debt we have incurred. For her part, Representative Marcy Kaptur (D-OH) described how we incurred our current debt burden and asked the hearing’s witnesses to respond to her analysis in writing. She also closed her remarks by noting the importance of bipartisanship when addressing the debt.

Despite the broad interest in a 3% target, some members called for more aggressive action. For example, Representative Tom McClintock (R-CA) expressed some skepticism of long-term targets, arguing that Congress should primarily focus on controlling spending in the near term. He went on to urge the committee to follow its statutory obligations and advance a budget resolution. Nevertheless, there was still significant support for the 3% fiscal target resolution, which was recently introduced in the Senate.

We appreciate Chairman Arrington and Ranking Member Boyle for holding this hearing and look forward to working with lawmakers as they seek ways to improve our fiscal health.