Maximizing America’s Prosperity Act of 2021
Bill: H.R.2675 | Sponsor: Rep. Brady, Kevin (R-TX)
Policy area: Economics and Public Finance

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.

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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This title may be cited as the ``Maximizing America's Prosperity 
Act of 2021''.

SEC. 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) is amended to read 
as follows:

``SEC. 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: 18.4 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)) enacted after the date of the enactment of the 
Maximizing America's Prosperity Act of 2021. Such amount shall not be 
treated as being less than zero with respect to any fiscal year.''.
    (b) Definitions.--Section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)) is amended by 
adding at the end the following:
            ``(22)(A) The term `total spending' means all budget 
        authority and outlays of the Government excluding net interest.
            ``(B) The term `total spending limit' means the maximum 
        permissible total spending of the Government set forth as a 
        percentage of estimated potential GDP specified in section 
        251(c).
            ``(23) The term `potential GDP' means the gross domestic 
        product that would occur if the economy were at full 
        employment, not exceeding the employment level at which 
        inflation would accelerate.''.
    (c) Conforming Amendments.--Part C of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is 
amended--
            (1) in section 254 (2 U.S.C. 904)--
                    (A) in subsection (a), in the table, by inserting 
                ``and spending reduction'' after ``sequestration'' each 
                place it appears;
                    (B) in subsection (c)--
                            (i) in the subsection heading, by inserting 
                        ``and Spending Reduction'' after 
                        ``Sequestration'';
                            (ii) in paragraph (1), by striking 
                        ``discretionary, pay-as-you-go, and deficit 
                        sequestration'' and inserting ``pay-as-you-go 
                        and deficit sequestration and regarding 
                        spending reduction''; and
                            (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'' after 
                        ``Sequestration''; and
                            (ii) by inserting ``and spending 
                        reduction'' after ``sequestration'' each place 
                        it appears; and
                    (D) in subsection (f)--
                            (i) in the subsection heading, by inserting 
                        ``and Spending Reduction'' after 
                        ``Sequestration'';
                            (ii) in paragraph (1), by inserting ``and 
                        spending reduction'' after ``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 '' before `` 
                                reports'';
                                    (II) in the first sentence, by 
                                inserting ``spending reduction report'' 
                                after ``preview reports''; and
                                    (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'' and inserting 
                        ``sequestrable or reducible''; and
                            (vii) in paragraph (4), as so 
                        redesignated--
                                    (I) by inserting ``or spending 
                                reduction'' after ``final 
                                sequestration'';
                                    (II) by inserting ``or spending 
                                reduction'' before ``is required''; and
                                    (III) by inserting ``or spending 
                                reductions, as the case may be,'' after 
                                ``sequestrations'';
            (2) in section 257(a) (2 U.S.C. 907(a)), by inserting 
        ``total spending,'' after ``outlays,''; and
            (3) in section 258C(a)(1) (2 U.S.C. 907d(a)(1))--
                    (A) by inserting ``or spending reduction'' after 
                ``sequestration'' each place the term appears; and
                    (B) by striking ``252 or 253'' and inserting ``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)) is amended by striking the item relating to section 251 and 
inserting the following:

``Sec. 251. Total spending limits.''.

SEC. 3. ALLOCATION FOR EMERGENCIES.

    (a) In General.--Section 302(a) of the Congressional Budget Act of 
1974 (2 U.S.C. 633(a)) is amended by adding at the end the following 
new paragraph:
            ``(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'' before the period.

SEC. 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.''.

SEC. 5. CONCURRENT RESOLUTIONS ON THE BUDGET.

    (a) In General.--Section 312 of the Congressional Budget Act of 
1974 is amended by adding at the end the following new subsection:
    ``(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 are each amended by 
striking ``and 312(c)'' and inserting ``312(c), and 312(g)''.
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