Blog: Senate Republicans introduce bill to control nation’s debt – Financial Regulation News – Financial Regulation News

A group of Republican Senators introduced Wednesday legislation seeking to reduce the nation’s debt.

The Federal Debt Emergency Control Act — introduced by U.S. Sens. Ted Cruz (R-TX), Rick Scott (R-FL), Mike Braun (R-IN), and Marsha Blackburn (R-TN) — would require the Office of Management and Budget to declare a “Federal Debt Emergency” in any fiscal year where the federal debt held by the public in the prior fiscal year exceeded 100 percent of that year’s Gross Domestic Product (GDP).

“America has a debt crisis. Our nation is barreling toward $30 trillion in debt – an unimaginable $233,000 in debt for every family in America,” Scott said. “It’s a crisis caused by decades of wasteful and reckless spending by Washington politicians. Now, President Biden is continuing this way of governing by pushing for trillions in wasteful spending, raising the U.S. federal debt by 60 percent to $39 trillion and the debt-to-GDP ratio to 117% in 2030, the highest level ever recorded in American history.”

This emergency declaration would trigger steps to reduce the federal debt to levels below 100 percent of GDP. Among them, it would terminate any unobligated funding from the American Rescue Plan Act and any previous stimulus bills and require all legislation that increases the federal deficit, as determined by the Congressional Budget Office, to carry its offsets. Further, it would fast-track any legislation that would reduce the federal deficit by at least 5 percent over ten years.

“Spending beyond our means has consequences,” Scott added. “We’re already seeing rising inflation, which disproportionately hurts the poorest families, like mine growing up. That’s why today, I am leading my colleagues in introducing the Federal Debt Emergency Control Act to rein in Washington’s out-of-control spending.”

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