Fiscal Responsibility Act of 2023

Became Public Law No: 118-5.

Jun 3, 2023

The Fiscal Responsibility Act of 2023 increases the federal debt limit and establishes discretionary spending caps for fiscal years 2024 and 2025, with automatic spending reductions (sequestration) if limits are exceeded. The bill modifies adjustments to spending limits for specific activities including disability reviews, health care fraud control, and disaster relief, and provides funding for the Department of Veterans Affairs and Department of Commerce. It requires the House Budget Committee chairman to submit spending allocations and establishes enforcement procedures for discretionary spending limits in both chambers of Congress. The bill also rescinds unobligated funds and expands work requirements for federal programs.

AI summaries currently cover bills with verified final-passage votes.

Fiscal Responsibility Act of 2023 This act increases the federal debt limit, establishes new discretionary spending limits, rescinds unobligated funds, expands work requirements for federal programs, and modifies other requirements related to the federal budget process. DIVISION A--LIMIT FEDERAL SPENDING TITLE I--DISCRETIONARY SPENDING LIMITS FOR DISCRETIONARY CATEGORY (Sec. 101) This section establishes new discretionary spending limits (also known as spending caps) for FY2024 and FY2025 that are enforced with sequestration (i.e., automatic, across-the-board spending reductions). The Congressional Budget Office (CBO) has estimated that the spending limits will reduce spending below the levels included in its baseline projections. In addition, this section extends and establishes new limits for several adjustments to discretionary spending limits that are permitted under current law to accommodate additional appropriations for certain activities. These adjustments apply to spending for continuing disability reviews and redeterminations, health care fraud and abuse control, and reemployment services and eligibility assessments. The section also extends the adjustment to discretionary spending limits for disaster relief funding. The limits for this adjustment are based on a statutory formula, which is modified by this section. During FY2026-FY2029, if the annual budget resolution has not been adopted by Congress by April 15, this section requires the chairman of the House Budget Committee to submit to the House a spending allocation for the House Appropriations Committee that is consistent with levels specified in this section. Finally, the section provides funding for (1) the Department of Veterans Affairs Cost of War Toxic Exposures Fund, and (2) the Department of Commerce Nonrecurring Expenses Fund. (Sec. 102) This section requires the discretionary spending limits to be revised if a continuing resolution (CR) is in effect at the beginning of the calendar year. Specifically, if a CR for FY2024 or FY2025 is in effect on or after January 1 of 2024 or 2025 for any discretionary budget account, the discretionary spending limits for that fiscal year must be revised to specified levels. CBO has estimated that the revised limits will be lower for defense spending and higher for nondefense spending compared to the original limits. If all of the regular appropriations bills for the fiscal year are enacted before April 30, the revised limits revert to the original limits. If a CR is in effect on April 30 of 2024 or 2025, a final sequestration order must be issued based on the revised limits. (Sec. 103) This section exempts specified funds that were previously designated as emergency spending from the discretionary spending limits. TITLE II--BUDGET ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES (Sec. 111) This section requires the chairman of the House Budget Committee to submit for publication in the Congressional Record FY2024 committee allocations, aggregate spending levels, and aggregate revenue levels consistent with this division. The allocations, aggregates, and levels submitted by the chairman are enforceable in the House of Representatives as if they were included in a FY2024 congressional budget resolution. The chairman may adjust the levels to reflect (1) changes resulting from CBO's updates to it baseline for FY2024-FY2033, or (2) legislation that would not increase the deficit over either FY2024-FY2028 or FY2024-FY2033. This section expires if Congress agrees to a budget resolution for FY2024. (Sec. 112) This section sets forth limitations that apply to advance appropriations in the House of Representatives. (Sec. 113) This section specifies that this title is enacted under the rulemaking powers of the House of Representatives and will be considered part of the rules of the House. It also recognizes that the House has the authority to change these rules. TITLE III--BUDGET ENFORCEMENT IN THE SENATE (Sec. 121) This section requi