Title: Spending Safeguard Act
Policy area: Economics and Public Finance

Summary:
Spending Safeguard Act
This bill requires the Office of Management and Budget (OMB) to establish spending limits for direct spending programs that (1) are enacted or reauthorized after the enactment of this bill, and (2) do not have a specific level of authorized spending expressed as a dollar amount.
The spending limits must be equal to (1) 120% of the cost of the program for defense, health, Medicare, income security, Social Security, and veterans benefits and services programs; and (2) 110% of the cost for any other program.
The OMB must maintain a publicly available scorecard that displays the spending level for any program that is subject to the limits. The OMB and the President must submit specified reports to Congress comparing current spending to the limits.
The bill prohibits obligations for programs that have reached the applicable spending limit. Agencies implementing programs listed on the OMB's scorecard must ensure that any contract, offer of benefits, or other material provided to program participants specifies that the program is subject to a spending limit that may impact future availability of funds to pay benefits.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6301 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 6301

   To establish a direct spending safeguard limitation on any direct 
 spending program without a specific level of authorized spending, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2021

Ms. Foxx (for herself, Mr. Norman, and Mr. Good of Virginia) introduced 
 the following bill; which was referred to the Committee on the Budget

_______________________________________________________________________

                                 A BILL


 
   To establish a direct spending safeguard limitation on any direct 
 spending program without a specific level of authorized spending, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Spending Safeguard Act''.

SEC. 2. SPENDING LIMITATION ON DIRECT SPENDING PROGRAMS.

    (a) Establishment of Spending Safeguard Limitation.--
            (1) In general.--The Director of the Office of Management 
        and Budget shall establish a spending limitation (in this Act 
        referred to as a ``spending safeguard limitation'') with 
        respect to any direct spending program not later than 90 days 
        after any such program is enacted or reauthorized (as the case 
        may be).
            (2) Determination of spending safeguard limitation.--The 
        spending safeguard limitation established under paragraph (1) 
        for a direct spending program shall be equal to--
                    (A) with respect to any such program within budget 
                function 050 (Defense), 550 (Health), 570 (Medicare), 
                600 (Income Security), 650 (Social Security), or 700 
                (Veterans Benefits and Services), 120 percent of the 
                cost of the program; and
                    (B) with respect to any such program within any 
                other budget function, 110 percent of the cost of the 
                program.
            (3) Determination of cost of program.--For purposes of 
        paragraphs (2) (A) and (B), the cost of the program shall be 
        the estimated six-year cost of the program, as determined by 
        the Director using the scorecards or estimate (as the case may 
        be) applicable to the program under section 4 of the Statutory 
        Pay-As-You-Go Act of 2010 (2 U.S.C. 933).
    (b) Spending Safeguard Limitation Scorecards.--
            (1) In general.--The Director shall maintain and make 
        publicly available a spending safeguard limitation scorecard 
        displaying the spending level for any direct spending program 
        that is subject to a spending safeguard limitation pursuant to 
        this Act.
            (2) Monthly costs.--Not later than 7 days after the end of 
        each month beginning after the first full month in which such a 
        direct spending program is operational, the Secretary of the 
        Treasury shall transmit to the Director a report listing the 
        total amount of spending for any direct spending program listed 
        on the scorecard.
            (3) OMB biannual report.--After the end of any six-month 
        period, the Director shall submit a report to the Committees on 
        the Budget of the House of Representatives and the Senate 
        containing the total level of spending for any such direct 
        spending program and the relation between such level and the 
        spending safeguard limitation applicable to such program.
    (c) President Budget Submissions.--
            (1) Annual.--Section 1105(a) of title 31, United States 
        Code, is amended by adding at the end the following:
            ``(40) a report on the total level of spending for any 
        direct spending program subject to a spending safeguard 
        limitation pursuant to the Spending Safeguard Act, and the 
        relation between such level and the spending safeguard 
        limitation applicable to such program.''.
            (2) Mid-session.--Section 1106(a)(1)(C) of such title is 
        amended by striking ``section 1105(a)(8) and (9)(B) and (C)'' 
        and inserting ``section 1105(a) (8), (9) (B) and (C), and 
        (40)''.
    (d) Procedures in Case of Breach.--
            (1) Spending limitation breach report.--If, during any of 
        the six years used to determine the cost of a direct spending 
        program pursuant to subsection (a)(3), the Director determines, 
        using the reports submitted under subsection (b)(2), that a 
        direct spending program listed on the scorecard established 
        under subsection (b) will reach the applicable spending 
        safeguard limitation within six months, the Director shall 
        transmit, not later than 15 days after the date of such 
        determination, a report to the Committees on the Budget of the 
        House of Representatives and the Senate and the committees that 
        have jurisdiction over the program.
            (2) Obligation limitation.--If, during any of such six 
        years, the Director determines using the reports submitted 
        under subsection (b)(2) that such a direct spending program has 
        reached the applicable spending safeguard limitation--
                    (A) effective 30 days after such determination, no 
                funds may be obligated to carry out such program; and
                    (B) on the date of such determination, the Director 
                shall submit a report to the Committees on the Budget 
                of the House of Representatives and the Senate and the 
                committees that have jurisdiction over the program that 
                such an obligation limitation has been imposed.
    (e) Agency Procedures.--Any Federal agency implementing a direct 
spending program listed on the scorecard established under subsection 
(b) shall ensure that any contract, offer of benefits, or other 
material provided to the program participants includes information 
specifying that the program is subject to a spending safeguard 
limitation that may impact future availability of funds to pay 
benefits.
    (f) Definitions.--In this Act--
            (1) the term ``Director'' means the Director of the Office 
        of Management and Budget;
            (2) the term ``direct spending'' has the meaning given such 
        term in section 250(c)(8) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 (2 U.S.C. 900(c)(8)); and
            (3) the term ``direct spending program'' means any Federal 
        program funded by direct spending that--
                    (A) is enacted or reauthorized after the date of 
                enactment of this Act; and
                    (B) does not have, in statute, a specific level 
                (expressed as a dollar amount) of authorization of 
                appropriations.
    (g) Prohibition on New Authorization of Funding.--No additional 
funds are authorized to be appropriated to carry out this Act.
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