WASHINGTON, DC – For the second time, the Republican-controlled House voted to address responsibly the debt ceiling and rein in wasteful Washington spending. The Fiscal Responsibility Act delivers important fiscal and economic policy victories for the American people, including caps on federal spending, work requirements to help lift Americans out of poverty, eliminating this year’s expanded IRS enforcement budget, clawing back tens of billions of COVID-19 funds – the largest rescission of previously authorized taxpayer dollars in history – and holding President Biden to account for his executive spending spree.
Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after House passage of the Fiscal Responsibility Act:
“President Biden refused to pick up the phone for almost 100 days and negotiate a deal to address Washington’s spending habit. Instead of listening to the American people who want spending cuts paired with any debt ceiling increase, President Biden attempted to put his reckless spending spree above the needs of fellow Americans. The only reason there is any debt ceiling deal is because House Republicans did our job and forced President Biden to the negotiating table.
“Americans are tired of Washington spending money we do not have on policies that do not work, expanding government control and driving up the cost of living. At field hearings across the country, the Ways and Means Committee has heard from farmers, families, workers, and small businesses about how Democrat policies and reckless spending have devastated their lives and livelihoods. The Fiscal Responsibility Act is not the end, but the beginning, of Republicans’ effort to curb runaway government. Under this bill, for the first time ever, Washington will be spending less next year than it is this year. This deal limits wasteful government spending, holds the Biden Administration accountable, and paves the way for future reforms.
“When Congress had budget caps, spending rose by an average of just over 2 percent. Once those caps expired, spending rose 16 percent in just two years under Democrat one-party rule. That’s no coincidence. As a matter of fact, under one-party Democrat rule in Washington, federal spending increased by $10 trillion. The Fiscal Responsibility Act combats the Democrats’ inflation crisis, labor shortage, and rising interest rates by capping Washington spending. It adds work requirements to help lift Americans out of poverty and end the labor shortage that has afflicted small businesses. It cuts unobligated COVID money that left a trail of inflation-fueling waste from beach bathrooms to golf courses to checks for prisoners. This bill takes a bite out of the $80 billion pay raise Democrats gave the IRS to increase audits on working-class families and forces President Biden to pay for his executive spending habit.”
Stop Out-of-Control Inflationary Spending
- The largest deficit reduction bill in history.
- For the first time in over a decade, our federal government’s discretionary spending will be less next year than this year.
- Cuts spending year-over-year, including a rollback of non-defense discretionary spending to FY22 Levels.
- Limits topline federal spending to 1% annual growth for the next 6 years.
Lift More Americans Out of Poverty
- Consequential reforms to strengthen work requirements in Temporary Assistance for Needy Families (TANF) will get Americans back to work and grow the economy.
- Closes loopholes that states use to dodge TANF work requirements and takes steps to move towards an outcomes-based accountability system by requiring states to report on work and earnings outcomes for recipients.
Claw Back Tens of Billions in Unspent COVID Funds
- Claws back $29 billion of unobligated, unspent COVID funds.
- Slashes $400 million from the CDC “Global Health Fund” that sends taxpayer money to China among other programs for the largest total rescissions package in history.
Rein in Executive Overreach
- Enact into law the first ever statutory Administrative Pay-As-You-Go to hold President Biden accountable for the full cost of executive rules and regulations, which should save taxpayers trillions.
- In the first two and a half years alone, Biden’s executive actions have totaled OVER $1.5 trillion in spending.