A bill to cap noninterest Federal spending as a percentage of potential GDP to right-size the Government, grow the economy, and balance the budget.

To cap noninterest Federal spending as a percentage of potential GDP to right-size the Government, grow the economy, and balance the budget. 1. Short title This title may be cited as the Maximizing America’s Prosperity Act of 2021 2. Total spending limits (a) Total Spending Limits Section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 901 251. Total spending limits (a) Projections (1) OMB report OMB shall prepare a report comparing projected total spending under section 257 and the total spending limits in subsection (c), and include such report in the budget as submitted by the President annually under section 1105(a) of title 31, United States Code. (2) CBO report CBO shall prepare a report comparing projected total spending under section 257 and the total spending limits in subsection (c), and include such report in the CBO annual baseline and reestimate of the President’s budget. (3) Inclusion in spending reduction orders Reports prepared pursuant to this subsection shall be included in a spending reduction order issued under subsection (b). (b) Spending Reduction Order (1) In general Within 15 calendar days after Congress adjourns to end a session, there shall be a spending reduction order under section 254(f)(4). (2) Calculation of spending reduction Subject to paragraph (3), each non-exempt budget account shall be reduced by a dollar amount calculated by multiplying the enacted level of sequestrable budgetary resources in that account at that time by the uniform percentage necessary to achieve the required automatic spending reduction. (3) Limitation on reduction No budget account shall be subject to a spending reduction of more than 5 percent of the budgetary resources of the budget account. (c) Fiscal Years of the Total Spending Period The total spending limit for each fiscal year shall be as follows: (1) Fiscal year 2022: 18.9 percent of potential GDP. (2) Fiscal year 2023: 18.6 percent of potential GDP. (3) Fiscal year 2024: 18.2 percent of potential GDP. (4) Fiscal year 2025: 18.4 percent of potential GDP. (5) Fiscal year 2026: 18.3 percent of potential GDP. (6) Fiscal year 2027: 18.2 percent of potential GDP. (7) Fiscal year 2028: 18.6 percent of potential GDP. (8) Fiscal year 2029: 17.9 percent of potential GDP. (9) Fiscal year 2030: 17.7 percent of potential GDP. (10) Fiscal year 2031 and subsequent fiscal years: 17.5 percent of potential GDP. (d) Reduction for unfunded Federal mandates The amount determined under subsection (c) with respect to each fiscal year shall be reduced by an amount equal to the amount of the unfunded direct costs with respect to such fiscal year of Federal mandates (as such terms are defined in section 421 of the Congressional Budget Act of 1974 ( 2 U.S.C. 658 Maximizing America’s Prosperity Act of 2021 . (b) Definitions Section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 900(c) (22) (A) The term total spending (B) The term total spending limit (23) The term potential GDP . (c) Conforming amendments Part C of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 900 et seq. (1) in section 254 ( 2 U.S.C. 904 (A) in subsection (a), in the table, by inserting and spending reduction sequestration (B) in subsection (c)— (i) in the subsection heading, by inserting and spending reduction Sequestration (ii) in paragraph (1), by striking discretionary, pay-as-you-go, and deficit sequestration pay-as-you-go and deficit sequestration and regarding spending reduction (iii) by striking paragraph (2) and inserting the following: (2) Spending reduction report The preview reports shall set forth for the budget year estimates for each of the following: (A) Estimated total spending. (B) Estimate of potential GDP. (C) The spending reduction necessary to comply with the total spending limit under section 251(c). ; (C) in subsection (e)— (i) in the subsection heading, by inserting and spending reduction Sequestration (ii) by inserting and spending reduction sequestration (D) in subsection (f)— (i) in the subsection heading, by inserting and spending reduction Sequestration (ii) in paragraph (1), by inserting and spending reduction sequestration (iii) by striking paragraph (2); (iv) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively; and (v) in paragraph (2), as so redesignated— (I) in the heading, by inserting and spending reduction reports (II) in the first sentence, by inserting spending reduction report preview reports (III) by striking the second sentence and inserting the following: In addition, these reports shall contain, for the budget year, for each account to be sequestered or subject to a spending reduction, as the case may be, estimates of the baseline level of sequestrable or reducible budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered or reduced and resulting outlay reductions. (vi) in paragraph (3), as so redesignated, by striking sequesterable sequestrable or reducible (vii) in paragraph (4), as so redesignated— (I) by inserting or spending reduction final sequestration (II) by inserting or spending reduction is required (III) by inserting or spending reductions, as the case may be, sequestrations (2) in section 257(a) ( 2 U.S.C. 907(a) total spending, outlays, (3) in section 258C(a)(1) ( 2 U.S.C. 907d(a)(1) (A) by inserting or spending reduction sequestration (B) by striking 252 or 253 251, 252, or 253 (d) Table of contents The table of contents in section 250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 900(a) Sec. 251. Total spending limits. . 3. Allocation for emergencies (a) In general Section 302(a) of the Congressional Budget Act of 1974 ( 2 U.S.C. 633(a) (6) Allocation to the Committees on Appropriations for emergencies Of the amounts of new budget authority and outlays allocated to the Committees on Appropriations for the first fiscal year of the concurrent resolution on the budget, 1 percent shall be designated as for emergencies and may be used for no other purpose. . (b) Budget of the President Section 1105(a)(14) of title 31, United States Code, is amended by inserting , including an amount for emergency spending not less than 1 percent of all discretionary spending for that year 4. President’s budget submissions to Congress Section 1105 of title 31, United States Code, is amended by adding at the end the following new subsection: (i) (1) The budget transmitted pursuant to subsection (a) shall be in compliance with the statutory cap on Federal spending set forth in the Maximizing America’s Prosperity Act of 2021 (2) Any budget transmitted pursuant to subsection (a) or paragraph (1) for a fiscal year shall include a prioritization of spending (as described in section 256(a)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985), by ranking all programs, projects, and activities of the Government in five categories from the— (A) vital to the general welfare and requires national policy; (B) important to the general welfare and requires national policy; (C) important to the general welfare and benefits from national policy; (D) advances the general welfare and can largely be accomplished by non-Federal entities; and (E) does not clearly advance the general welfare and may be unsuited for national policy; with not less than 12 percent of total spending falling into any one category. . 5. Concurrent resolutions on the budget (a) In general Section 312 of the Congressional Budget Act of 1974 ( 2 U.S.C. 643 (g) Statutory cap on total Federal spending point of order It shall not be in order in the House of Representatives or the Senate to consider any concurrent resolution on the budget that sets forth total Federal outlays for any fiscal year in excess of those set forth for that fiscal year in section 252A of the Balanced Budget and Emergency Deficit Control Act of 1985. . (b) Conforming amendment Subsections (c)(2) and (d)(3) of section 904 of the Congressional Budget Act of 1974 ( 2 U.S.C. 621 and 312(c) 312(c), and 312(g) October 20, 2021 Read the second time and placed on the calendar

Summary: Maximizing America's Prosperity Act of 2021 This bill establishes annual spending limits that are equal to specified percentages of potential gross domestic product (GDP). Potential GDP generally refers to the GDP that would occur if the economy were at full employment without inflation. The spending limits apply to all budget authority and outlays of the federal government excluding net interest. The bill establishes procedures for enforcing the spending limits, including requirements for sequestration (i.e., automatic spending cuts) and for the President's budget and congressional budget resolutions to comply with the limits. The bill also requires at least 1% of total discretionary spending for each year to be reserved for emergencies.