Lawmakers Introduce a Bipartisan Resolution in Support of a 3% Deficit-to-GDP Target

Representatives Bill Huizenga (R-MI) and Scott Peters (D-CA), co-chairs of the Bipartisan Fiscal Forum, joined by Representatives Lloyd Smucker (R-PA) and Mike Quigley (D-IL), introduced a resolution in support of a 3% deficit-to-Gross Domestic Product (GDP) target.

Additional original cosponsors include House Budget Chair Jodey Arrington (R-TX), as well as the rest of the Bipartisan Fiscal Forum steering committee, consisting of Reps. Jimmy Panetta (D-CA), Blake Moore (R-UT), Ed Case (D-HI), Erin Houchin (R-IN), Steve Womack (R-AR), Marie Gluesenkamp Perez (D-WA), Dusty Johnson (R-SD), Chrissy Houlahan (D-PA), Ron Estes (R-KS), and Jared Golden (D-ME).

Lowering deficits to 3% of GDP would have immense fiscal and economic benefits for our nation, which is why the 3% target has been strongly endorsed by the Board of the Committee for a Responsible Federal Budget.

The resolution 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% of GDP while acknowledging that the deficit for fiscal year 2025 was roughly 6% of GDP and interest costs are now projected to total over $1 trillion each year going forward.

It declares that the national debt represents a threat to national security and economic growth and risks increasing interest rates and the cost of living.

The resolution also states that deficit reduction is best achieved when lawmakers have a manageable, meaningful fiscal goal to aim for. In addition to describing the rationale for the target, the resolution outlines potential enforcement mechanisms, laying the groundwork for the next steps Congress can take to reach the 3% of GDP deficit target.

The resolution recommends several such steps, including:

1. the President should submit budgets designed to create a path to meet and sustain the target;
2. the Congressional budget resolution should set allocations consistent with meeting the target on schedule;
3. the House Budget Committee should recommend enforcement options, and the House Rules Committee should recommend changes to the House rules to ensure compliance with a 3% of GDP deficit target.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, praised the resolution's introduction: 

This resolution is a first step toward fixing our fiscal trajectory and will help build bipartisan consensus in favor of a sustainable budget framework. A fiscal goal should be aggressive enough to help fix the problem but realistic enough to be achievable, which is exactly what this resolution encourages. I am hopeful that this resolution will serve as a catalyst toward reducing deficits and I commend Representatives Huizenga (R-MI), Peters (D-CA), Smucker (R-PA) and Quigley (D-IL) for introducing it. Policymakers should get to work on putting in place the necessary policies to get the national debt on a downward sustainable path, taking no options off the table.