Congressional Budget Office (CBO): Estimated Budgetary Impact of The Fiscal Responsibility Act of 2023

INTRODUCTION:

Established in 1974, The Congressional Budget Office is a federal agency within the legislative branch of the United States government.  It is charged with providing  members of Congress  non partisan, objective  analysis of budgeting and economic issues to support the congressional budget process. Each year, CBO economists and budget analysts produce dozens of reports and hundreds of cost estimates for proposed legislation.

For the past several months I have been receiving  directly from CBO links to  which I now plan to begin posting  selectively on this blog in the interest of information sharing.  If there appears to be sufficient interest among readers of this blog over a period of time, I plan to continue posting selections I receive from CBO.

HR 3746, THE FISCAL RESPONSIBILITY ACT OF 2023

SUMMARY:

This bill increases the federal debt limit, establishes new discretionary spending limits, rescinds unobligated funds, and expands work requirements for federal programs.

Specifically, the bill suspends the federal debt limit through January 1, 2025, and increases the limit on January 2, 2025, to accommodate the obligations issued during the suspension period.

In addition, the bill establishes new discretionary spending limits for FY2024 and FY2025 that are enforced with sequestration (i.e., automatic spending cuts). It also changes the limits to 1% below the FY2023 base funding levels if a continuing resolution is in effect on or after January 1, 2024, or on or after January 1, 2025, because all 12 regular appropriations bills were not enacted by the end of the prior year.

The bill also includes provisions that

• rescind certain unobligated funds that were provided to address COVID-19 and to the Internal Revenue Service;
• provide funding for the Department of Veterans Affairs Cost of War Toxic Exposure Fund;
• provide funding for the Department of Commerce Nonrecurring Expenses Fund;
• provide statutory authority through 2024 for the requirement for agencies that propose certain administrative actions that will increase direct spending to also propose at least one administrative action that will decrease direct spending by at least the same amount (commonly known as administrative pay-as-you-go rules);
• terminate the suspension of federal student loan payments;
• expand the work requirements for the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program; and
• expedite the permitting process for certain energy projects.

CBO ANALYSIS: