CRFB Statement on Limit, Save, Grow Act Passage
The House of Representatives just passed the Limit, Save, Grow Act, which would raise the debt ceiling, cap discretionary spending, and reduce deficits by roughly $4.8 trillion over the next decade. If enacted, we estimate this bill would reduce projected national debt from 118 percent of the economy by 2033 to 106 percent. Our summary of the plan is available here.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
Now that the House has passed a package of savings, it’s time for the Senate and White House to come to the negotiating table.
The Limit, Save, Grow Act is a reasonable proposal to raise the debt limit and begin addressing our nation’s severe fiscal challenges. We must not threaten default or play chicken with the full faith and credit of the U.S. dollar, and we applaud the House for passing a debt limit increase. At the same time, the $4.8 trillion in proposed savings would help the Fed fight inflation and go a long way toward putting the debt on a more sustainable path.
The House is absolutely right to call for spending cuts and caps to discretionary spending. Unfettered appropriations have grown 37 percent since 2017, outpacing both inflation and economic growth. Cutting spending back to the 2022 level is aggressive but reasonable, so long as lawmakers consider every part of the defense and nondefense discretionary budget for savings. Those who disagree with these levels should put forward alternative proposals.
The Limit, Save, Grow Act is a good starting point for negotiations, but it is not perfect. Policymakers should remove the proposal to cut $71 billion of IRS funding, which would lead to higher debt levels – not lower – due to the revenue it would lose. Policymakers should also consider adding health care savings to the bill, and a fiscal commission to propose solutions to our long-term fiscal challenges.
The White House also has a plan for significant savings in their budget – helpfully showing both the President and the Speaker agree on the need for savings. There is no time to waste; we must raise the debt ceiling and we should implement a package of savings.
Time is of the essence.
For more information, please contact Kim McIntyre, Director of Media Relations, at email@example.com.