59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–291 

DEBT MANAGEMENT AND FISCAL RESPONSIBILITY ACT 

OF 2015 

OCTOBER 7, 2015.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. RYAN of Wisconsin, from the Committee on Ways and Means, 

submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 3442] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Ways and Means, to whom was referred the 

bill (H.R. 3442) to provide further means of accountability of the 

United States debt and promote fiscal responsibility, having considered the same, report favorably thereon without amendment and 

recommend that the bill do pass. 

CONTENTS 

Page 

I. SUMMARY AND BACKGROUND ............................................................... 2 

A. Purpose and Summary ..................................................................... 2 

B. Background and Need for Legislation ............................................. 2 

C. Legislative History ............................................................................ 3 

II. EXPLANATION OF THE BILL ................................................................... 4 

A. DEBT MANAGEMENT AND FISCAL RESPONSIBILITY ACT 

OF 2015 ........................................................................................... 4 

III. VOTES OF THE COMMITTEE .................................................................... 5 

IV. BUDGET EFFECTS OF THE BILL ............................................................ 5 

A. Committee Estimate of Budgetary Effects ...................................... 5 

B. Statement Regarding New Budget Authority and Tax Expenditures Budget Authority .................................................................. 5 

C. Cost Estimate Prepared by the Congressional Budget Office ....... 6 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

THE HOUSE .............................................................................................. 6 

A. Committee Oversight Findings and Recommendations ................. 6 

B. Statement of General Performance Goals and Objectives ............. 7 


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1 Congressional Budget Office, ‘‘The Long-Term Budget Outlook,’’ June 16th 2015. 

2 Congressional Budget Office, ‘‘The Long-Term Budget Outlook,’’ June 16th 2015. 

C. Information Relating to Unfunded Mandates ................................ 7 

D. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 7 

E. Duplication of Federal Programs ..................................................... 7 

F. Disclosure of Directed Rule Makings .............................................. 7 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 7 

A. Text of Existing Law Amended or Repealed by the Bill, as 

Reported .......................................................................................... 7 

B. Changes in Existing Law Proposed by the Bill, as Reported ........ 8 

VII. DISSENTING VIEWS ................................................................................... 10 

I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

The ‘‘Debt Management and Fiscal Responsibility Act of 2015, 

H.R. 3442, as ordered reported by the Committee on Ways and 

Means on September 10, 2015, requires the Secretary of the Treasury (Treasury) to provide information on the debt, the fiscal outlook, and the Administration’s plans to address debt and fiscal 

problems. More specifically, the bill requires the Secretary to appear before the House Ways and Means Committee and the Senate 

Finance Committee not more than 60 days and not less than 21 

days prior to any date on which the Treasury Secretary anticipates 

that the nation will reach the debt limit. Total debt subject to the 

limit, which includes Treasury securities held by Federal trust 

funds and other accounts, currently stands at $18.1 trillion. The 

legislation would require the Treasury Secretary to present a Debt 

Report to Congress regarding the state of the public debt, including 

its composition and trajectory. The legislation would also require 

the Treasury Secretary to present a Statement of Intent which 

would contain a detailed explanation of proposals of the President 

to reduce the public debt. Lastly, when applicable, the Treasury 

Secretary would also present a progress report on the implementation of the Statement of Intent. 

B. BACKGROUND AND NEED FOR LEGISLATION

According to the Congressional Budget Office (CBO), ‘‘the longterm outlook for the federal budget has worsened dramatically over 

the past several years, in the wake of the 2007–2009 recession and 

slow recovery.’’ 1 When studying the impact of debt on the economy, 

economists tend to look at a subset of the total debt known as debt 

held by the public. Debt held by the public is comprised almost entirely of marketable debt and currently amounts to $13.1 trillion. 

In 2008, debt held by the public stood at 39 percent of GDP, close 

to its historical average, but has since risen to 74 percent and is 

on pace to rise to 107 percent in 2040. CBO also states that if the 

trajectory of key variables changed (such as interest rates, mortality rates, federal spending on health care, and productivity 

growth), the debt to GDP ratio could rise to 141 percent in 2040.2

CBO deems these trends to be ‘‘unsustainable’’. 

The projected rise in the debt is driven by the rapid growth in 

entitlement spending and the net interest payments to service the 

growing debt. CBO summarizes the impact of entitlements and inVerDate Sep 11 2014 05:37 Oct 08, 2015 Jkt 059006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR291.XXX HR291

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3 Congressional Budget Office, ‘‘The Long-Term Budget Outlook,’’ June 16th 2015. 

terest payments on the fiscal outlook in its latest long-term outlook 

by stating: 

‘‘Through-out the next decade, however, an aging population, rising health care costs per person, and an increasing number of recipients of exchange subsidies and Medicaid benefits attributable to the Affordable Care Act 

would push up spending for some of the largest entitlement programs if current laws governing those programs 

remained unchanged. Moreover, CBO expects interest 

rates to rebound in coming years from their current unusually low levels, raising the government’s interest payments on debt.’’ 3

Given this outlook of historically high and rising debt, it is critical that Congress and the Administration to publicly discuss the 

drivers of our debt, its composition, trajectory, and how the United 

States will meet its debt obligations in the future. All of these factors should help to facilitate policies which improve the outlook for 

our nation’s fiscal health. While House Republicans have managed 

to pass balanced budgets several years in a row, the Administration continues to propose budgets that never balance. This stark 

difference in priorities calls for a new communications framework 

surrounding the debt limit, one in which the Treasury Secretary 

presents to Congress the President’s proposals to reduce the debt 

as well as the effects of unchecked borrowing. 

C. LEGISLATIVE HISTORY

Background 

The ‘‘Debt Management and Fiscal Responsibility Act of 2015, 

H.R. 3442, was introduced on September 8, 2015, and was referred 

to the Committee on Ways and Means. 

Committee hearings 

The debt limit has been discussed on February 3, 2015 at a 

‘‘Hearing on the President’s Fiscal Year 2016 Budget,’’ which featured Secretary Jack Lew. In addition, the committee held two 

hearings during the 113th Congress dedicated to the issue. The 

committee held a January 22, 2013 ‘‘Hearing on the Debt Limit,’’ 

which examined the Congress’s borrowing power and operation of 

the debt limit. Additionally, the Oversight Subcommittee held an 

April 10, 2013 hearing, ‘‘Examining the Government’s Ability to 

Continue Operations When at the Statutory Debt Limit,’’ which examined the government’s ability to prioritize its obligations and 

continue operations should the U.S. Treasury reach its statutory 

debt limit and exhaust extraordinary measures. 

Committee action 

The Committee on Ways and Means marked up H.R. 3442, the 

Debt Management and Fiscal Responsibility Act, on September 10, 

2015, and ordered the bill favorably reported (with a quorum being 

present). 


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II. EXPLANATION OF THE BILL 

A. DEBT MANAGEMENT AND FISCAL RESPONSIBILITY ACT OF 2015 

PRESENT LAW

Several data sources and reports issued by Treasury, the Office 

of Management and Budget (OMB), CBO, and the Government Accountability Office (GAO), among others, contain information about 

the composition of the nation’s debt and its unsustainable trajectory. However, there is no established framework that links such 

information, explicitly as it pertains to the debt limit, with a dedicated communication to Congress concerning the administration’s 

plans to improve our fiscal outlook and to provide progress reports 

of actions taken. 

REASONS FOR CHANGE

The practice of raising the statutory debt limit without consideration of that which is driving the nation’s debt and plans to reduce 

it is untenable. H.R. 3442 aims to establish a new debt limit communication framework that enhances accountability, reduces disruptive risk, and returns the focus to finding debt reduction solutions. The legislation requires the administration to appear before 

Congress prior to each potential debt limit increase and provide 

testimony and detailed reports on: the national debt and its key 

drivers; explicit short-, medium-, and long-term debt reduction proposals; and progress on debt reduction. This framework will increase transparency and reduce the uncertainty which often surrounds debt limit impasses. 

EXPLANATION OF PROVISIONS

Section 1 contains the short title of the bill. Subsection 2(a) requires that the Secretary of the Treasury appear before the House 

Ways and Means Committee and the Senate Finance Committee 

not more than 60 days and not less than 21 days prior to any date 

on which the Treasury Secretary anticipates that the nation will 

reach the debt limit. Subsection 2(b) specifies the information the 

Treasury Secretary must present, which includes the following: 

—a Debt Report to Congress on the state of the national debt, including its composition and trajectory, as well as the Administration’s plans to meet debt obligations in the event that Congress 

agrees to raise the debt limit. 

—a Statement of Intent on how the Administration proposes to 

reduce the debt and the debt to GDP ratio. Additionally, the statement would address the impacts of the increased limit on factors 

such as our reserve currency status and the sustainability of entitlements. 

—a Progress Report on the implementation of the Statement of 

Intent proposals by the Administration to reduce U.S. debt levels 

at subsequent appearances. 

Subsection 2(c), states that when applicable, the Treasury Secretary shall present a progress report on the implementation of the 

Statement of Intent. 


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EFFECTIVE DATE

The provision becomes effective upon enactment. 

III. VOTES OF THE COMMITTEE 

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the vote of the Committee on Ways and Means in its consideration of H.R. 3442, the Debt Management and Fiscal Responsibility Act of 2015, on September 10, 2015. 

The bill, H.R. 3442 was ordered favorably reported by a roll call 

vote of 22 yeas to 14 nays (with a quorum being present). The vote 

was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Ryan ................................... X ......... ............. Mr. Levin .................................. ......... X .............

Mr. Johnson ............................... X ......... ............. Mr. Rangel ............................... ......... X .............

Mr. Brady .................................. X ......... ............. Mr. McDermott ......................... ......... X .............

Mr. Nunes ................................. ......... ......... ............. Mr. Lewis .................................. ......... X .............

Mr. Tiberi .................................. X ......... ............. Mr. Neal ................................... ......... X .............

Mr. Reichert .............................. X ......... ............. Mr. Becerra .............................. ......... ......... .............

Mr. Boustany ............................. X ......... ............. Mr. Doggett .............................. ......... X .............

Mr. Roskam ............................... X ......... ............. Mr. Thompson .......................... ......... X .............

Mr. Price ................................... X ......... ............. Mr. Larson ................................ ......... X .............

Mr. Buchanan ........................... X ......... ............. Mr. Blumenauer ....................... ......... X .............

Mr. Smith (NE) .......................... X ......... ............. Mr. Kind ................................... ......... X .............

Ms. Jenkins ............................... X ......... ............. Mr. Pascrell .............................. ......... X .............

Mr. Paulsen ............................... X ......... ............. Mr. Crowley .............................. ......... X .............

Mr. Marchant ............................ X ......... ............. Mr. Davis .................................. ......... X .............

Ms. Black .................................. X ......... ............. Ms. Sanchez ............................. ......... X .............

Mr. Reed ................................... X ......... .............

Mr. Young ................................. X ......... .............

Mr. Kelly .................................... X ......... .............

Mr. Renacci ............................... X ......... .............

Mr. Meehan ............................... X ......... .............

Ms. Noem .................................. X ......... .............

Mr. Holding ............................... X ......... .............

Mr. Smith (MO) ......................... X ......... .............

Mr. Dold .................................... ......... ......... .............

IV. BUDGET EFFECTS OF THE BILL 

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the effects on the budget of the bill, H.R. 3442, as reported. 

The Committee agrees with the estimate prepared by the Congressional Budget Office (CBO), which is included below. 

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX

EXPENDITURES BUDGET AUTHORITY

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee states that the bill involves no new or increased budget authority. The Committee states 

further that the bill involves no new or increased tax expenditures. 


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C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET

OFFICE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, requiring a cost estimate prepared by 

the CBO, the following statement by CBO is provided. 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, September 18, 2015. 

Hon. PAUL RYAN, 

Chairman, Committee on Ways and Means, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3442, the Debt Management and Fiscal Responsibility Act of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

KEITH HALL, 

Director. 

Enclosure. 

H.R. 3442—Debt Management and Fiscal Responsibility Act of 2015 

H.R. 3442 would require the Secretary of the Treasury to appear 

before the House Committee on Ways and Means and the Senate 

Committee on Finance not more than sixty days and not less than 

twenty-one days before the Secretary anticipates that borrowing by 

the Treasury will reach the legal debt limit. Under the bill, the 

Secretary would present a report on the status of the national debt, 

plans to reduce the debt, the effect of increasing the debt limit, and 

progress made to reduce the debt. Finally, the bill would require 

that report to be available to the public on the website of the Department of the Treasury. 

CBO estimates that implementing H.R. 3442 would cost less 

than $500,000 over the 2016–2020 period; such spending would be 

subject to the availability appropriated funds. The department already undertakes much of the work required for such a report. Because enacting the bill would not affect direct spending or revenues, pay-as-you go procedures do not apply. 

H.R. 3442 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Matthew Pickford. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE 

RULES OF THE HOUSE 

A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

With respect to clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives (relating to oversight findings), the Committee advises that it was as a result of the Committee’s review of 

the provisions of H.R. 3442 that the Committee concluded that it 


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is appropriate to report the bill, as amended, favorably to the 

House of Representatives with the recommendation that the bill do 

pass. 

B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

With respect to clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the bill contains no measure that authorizes funding, so no statement of general performance goals and objectives for which any measure authorizes funding is required. 

C. INFORMATION RELATING TO UNFUNDED MANDATES

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104–4). 

The Committee has determined that the bill does not contain 

Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental 

mandate on State, local, or tribal governments. 

D. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND

LIMITED TARIFF BENEFITS

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the provisions of the bill, and states that the provisions of the bill do not 

contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

E. DUPLICATION OF FEDERAL PROGRAMS

In compliance with Sec. 3(g)(2) of H. Res. 5 (114th Congress), the 

Committee states that no provision of the bill establishes or reauthorizes: (1) a program of the Federal Government known to be duplicative of another Federal program; (2) a program included in any 

report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139; or (3) a program related 

to a program identified in the most recent Catalog of Federal Domestic Assistance, published pursuant to the Federal Program Information Act (Pub. L. No. 95–220, as amended by Pub. L. No. 98– 

169). 

F. DISCLOSURE OF DIRECTED RULE MAKINGS

In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), the 

following statement is made concerning directed rule makings: The 

Committee estimates that the bill requires no directed rule makings within the meaning of such section. 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS 

REPORTED 

A. TEXT OF EXISTING LAW AMENDED OR REPEALED BY THE BILL, AS

REPORTED

With respect to clause 3(e)(1)(A) of rule XIII of the Rules of the 

House of Representatives, the bill, as reported, includes no proviVerDate Sep 11 2014 05:31 Oct 08, 2015 Jkt 059006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR291.XXX HR291

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sions proposing to repeal or amend an existing statute or part 

thereof. 

B. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 31, UNITED STATES CODE 

* * * * * * * 

SUBTITLE III—FINANCIAL MANAGEMENT 

* * * * * * * 

CHAPTER 31—PUBLIC DEBT 

SUBCHAPTER I—BORROWING AUTHORITY 

Sec. 

3101. Public debt limit. 

* * * * * * * 

SUBCHAPTER II—ADMINISTRATIVE 

* * * * * * * 

3131. Report before reaching debt limit. 

* * * * * * * 

SUBCHAPTER II—ADMINISTRATIVE 

* * * * * * * 

§ 3131. Report before reaching debt limit 

(a) IN GENERAL.—Not more than sixty days and not less than 

twenty-one days prior to any date on which the Secretary of the 

Treasury anticipates the public debt will reach the limit specified 

under section 3101, as modified by section 3101A, the Secretary 

shall appear before the Committee on Ways and Means of the House 

of Representatives and the Committee on Finance of the Senate, to 

submit the information described under subsection (b). 

(b) INFORMATION REQUIRED TO BE PRESENTED.—In an appearance described under subsection (a), the Secretary shall submit the 

following: 

(1) DEBT REPORT.—A report on the state of the public debt, 

including— 

(A) the historical levels of the debt, current amount and 

composition of the debt, and future projections of the debt; 

(B) the drivers and composition of future debt; and 

(C) how, if the debt limit is raised, the United States will 

meet debt obligations, including principal and interest. 

(2) STATEMENT OF INTENT.—A detailed explanation of— 

(A) proposals of the President to reduce the public debt 

in the short term (the current and following fiscal year), 


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medium term (approximately three to five fiscal years), and 

long term (approximately ten fiscal years), and proposals of 

the President to adjust the debt-to-gross domestic product 

ratio; 

(B) the impact an increased debt limit will have on future Government spending, debt service, and the position of 

the United States dollar as the international reserve currency; and 

(C) projections of fiscal health and sustainability of 

major direct-spending entitlement programs (including Social Security, Medicare, and Medicaid). 

(3) PROGRESS REPORT.— 

(A) IN GENERAL.—A detailed report on the progress of implementing all proposals of the President described under 

subparagraph (A) of paragraph (2). 

(B) EXCEPTION.—The report described under this paragraph shall only be submitted if a Secretary has already 

appeared at least once pursuant to this section during any 

term of office for a particular President. 

(c) PUBLIC ACCESS TO INFORMATION.—The Secretary of the Treasury shall place on the homepage of the Department of the Treasury 

a link to a webpage that shall serve as a repository of information 

made available to the public for at least 6 months following the date 

of release of the relevant information, including: 

(1) The debt report submitted under subsection (b)(1). 

(2) The detailed explanation submitted under subsection 

(b)(2). 

(3) The progress report submitted under subsection (b)(3). 

(4) Such other information as the Secretary reasonably believes is necessary or helpful to the public in understanding the 

statutory debt limit, Government debt, and the reports and explanations described under paragraphs (1), (2), and (3). 

* * * * * * * 


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VII. DISSENTING VIEWS 

The Democratic Members of the Committee believe this bill’s new 

statutory requirements for the Treasury Department are unnecessary and duplicate information Congress already receives. The Secretary of the Treasury regularly corresponds with our Committee 

about the debt limit, providing regular updates about the status of 

our ability to meet our obligations and the measures Treasury is 

taking, and appears before us regularly. The President’s proposals 

to reduce the deficit and the debt, using a combination of spending 

cuts and revenue increases, have been clearly outlined in the budget submission each year, and Administration officials regularly 

make themselves available to discuss them. 

Further, if the Treasury Department were to generate a new report on the debt limit for the Secretary to discuss with us, it should 

focus on the most pressing issue—the catastrophic consequences of 

a default on our obligations. Nowhere in H.R. 3442 does it even 

mention having Treasury provide Congress with estimates of the 

number of Americans who will be harmed if Congress fails to responsibly raise the debt limit. 

If Congress fails to raise the debt limit, Treasury may not be able 

to pay benefits to veterans who served our country loyally and well. 

We may not be able to pay doctors and hospitals who cared for 

Medicare patients. We may not be able to pay salaries to our 

troops, even those currently in harm’s way. We may not be able to 

pay Pell Grants to students who need them to go to college. We 

may not be able to pay grants promised to researchers searching 

for cures to cancer and other terrible diseases. All these expenditures have already been authorized by Congress, but we know that 

if we don’t act on the debt limit, we can’t pay them all. We need 

Treasury’s guidance to understand which Americans might pay the 

price first. 

The report envisioned by this bill also excludes any Treasury 

analysis of the catastrophic economic consequences of default that 

many outside experts have warned about. 

The information outlined above might be useful to Congress. The 

report envisioned by the bill would simply be repetitive and distracting from the real issue. 

Sincerely, 

SANDER LEVIN. CHARLES B. RANGEL. JIM MCDERMOTT. JOHN LEWIS. RICHARD E. NEAL. XAVIER BECERRA. 

LLOYD DOGGETT. 

MIKE THOMPSON. 

JOHN B. LARSON. 


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EARL BLUMENAUER. RON KIND. BILL PASCRELL, JR. JOSEPH CROWLEY. DANNY K. DAVIS. LINDA T. SA ́ NCHEZ. 

Æ 


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