Debt Limit Reform and Congressional Pay for Performance Act of 2014

To suspend the application of the limit on the Nation’s debt for a 10-year period, to reduce the pay of Members of Congress for failing to meet fiscal sustainability targets, and for other purposes. 1. Short title This Act may be cited as the Debt Limit Reform and Congressional Pay for Performance Act of 2014 2. Suspension of debt limit (a) Suspension Section 3101(b) (b) Special rule relating to obligations issued during suspension period Effective on April 16, 2024, the limitation in section 3101(b) (1) the face amount of obligations issued under chapter 31 of such title and the face amount of obligations whose principal and interest are guaranteed by the United States Government (except guaranteed obligations held by the Secretary of the Treasury) outstanding on April 16, 2024, exceeds (2) the face amount of such obligations outstanding on the date of enactment of this Act. (c) Limitation An obligation shall not be taken into account under subsection (b)(1) unless the issuance of such obligation was necessary to fund a commitment incurred by the Federal Government that required payment before April 16, 2024. 3. Determination of fiscal sustainability targets (a) Determinations On December 31 of each of calendar years 2015 through 2023, the Director of the Office of Management and Budget shall determine— (1) the sum of the face amount of obligations issued under chapter 31 (2) the amount which is equal to the applicable percentage (as described in subsection (b)) of the Gross Domestic Product determined by the Secretary of Commerce with respect to such fiscal year; and (3) if the amount determined under paragraph (1) with respect to a fiscal year exceeds the amount determined under paragraph (2) with respect to such fiscal year, the percentage by which the amount determined under paragraph (1) exceeds the amount determined under paragraph (2). (b) Applicable Percentages Described For purposes of subsection (a)(2), the applicable percentage with respect to a fiscal year is as follows: (1) For fiscal year 2015, 74.1 percent. (2) For fiscal year 2016, 70.4 percent. (3) For fiscal year 2017, 66.9 percent. (4) For fiscal year 2018, 64.4 percent. (5) For fiscal year 2019, 62.4 percent. (6) For fiscal year 2020, 60.5 percent. (7) For fiscal year 2021, 58.7 percent. (8) For fiscal year 2022, 56.9 percent. (9) For fiscal year 2023, 54.8 percent. 4. Reduction in pay of Members of Congress for failure to meet fiscal sustainability targets (a) Reduction Section 601(a)(2) of the Legislative Reorganization Act of 1946 ( 2 U.S.C. 4501(2) (C) If the Director of the Office of Management and Budget determines that the amount determined under paragraph (1) of section 3(a) of the Debt Limit Reform and Congressional Pay for Performance Act of 2014 with respect to a fiscal year exceeds the amount determined under paragraph (2) of section 3(a) of such Act with respect to such fiscal year— (i) each annual rate of pay referred to in paragraph (1) shall be reduced by the percentage determined by the Director of the Office of Management and Budget under section 3(a)(3) of the Debt Limit Reform and Congressional Pay for Performance Act of 2014 for all pay periods occurring during the next calendar year which begins after that fiscal year; and (ii) no adjustment may be made under subparagraph (A) in any such rate of pay during that next calendar year. . (b) Technical Amendment Section 601(a)(2)(A) of such Act is amended by striking Subject to subparagraph (B), Subject to subparagraphs (B) and (C), (c) Effective Date The amendments made by this section shall apply with respect to fiscal year 2015 and each succeeding fiscal year.

Summary: Debt Limit Reform and Congressional Pay for Performance Act of 2014 - Suspends the public debt limit for the period beginning on February 8, 2014, and ending on April 15, 2024. Revises the special rule relating to obligations issued during the suspension period to provide for an increase in the debt limit, effective April 16, 2024, to the extent that: (1) the face amount of obligations issued and the face amount of obligations whose principal and interest are guaranteed by the federal government (except guaranteed obligations held by the Secretary of the Treasury) outstanding on April 16, 2024, exceeds (2) the face amount of such obligations outstanding on the date of enactment of this Act. Prohibits an obligation from being taken into account unless its issuance was necessary to fund a commitment incurred by the federal government that required payment before April 16, 2024. Requires the Director of the Office of Management and Budget (OMB) on December 31 of each of calendar years 2015 through 2023 to determine: the sum of the face amount of obligations issued and the face amount of obligations whose principal and interest are guaranteed by the federal government (except guaranteed obligations held by the Secretary of the Treasury), outstanding at any time, for the most recent fiscal year which ended before the calendar year; the amount equal to a specified applicable percentage of the Gross Domestic Product (GDP), as determined by the Secretary of Commerce, for such fiscal year; and the percentage by which the sum of outstanding obligations for the most recent fiscal year exceeds, if it does, the applicable percentage of the GDP for that fiscal year. Amends the Legislative Reorganization Act of 1946 to require the Director of OMB to reduce each annual rate of pay for Members of Congress by the percentage by which such sum of outstanding obligations for the most recent fiscal year exceeds the applicable percentage of the GDP for that fiscal year for all pay periods occurring during the calendar year beginning after that fiscal year. Prohibits any cost of living adjustment to the rate of pay for any Member of Congress during the next calendar year.