Fiscal Responsibility Act Passes House

The bipartisan debt-ceiling deal, Bill H.R. 3746, also known as the Fiscal Responsibility Act, has officially passed the House of Representatives.

The Fiscal Responsibility Act increases the federal debt limit, establishes new discretionary spending limits, rescinds unobligated funds, and expands work requirements for federal programs.

Furthermore, the bill would suspend the federal debt limit through January 1, 2025, and increase the limit on January 2, 2025, to accommodate the obligations issued during the suspension period.

In addition, the bill establishes new discretionary spending limits for FY2024 and FY2025 that are enforced with sequestration (i.e., automatic spending cuts).

It also changes the limits to 1% below the FY2023 base funding levels if a continuing resolution is in effect on or after January 1, 2024, or on or after January 1, 2025, because all 12 regular appropriations bills were not enacted by the end of the prior year.”

The bill also includes several provisions that: rescind certain unobligated funds that were provided to address COVID-19 and to the Internal Revenue Service; provide funding for the Department of Veterans Affairs Cost of War Toxic Exposure Fund.

The new legislation also provides funding for the Department of Commerce Nonrecurring Expenses Fund; provides statutory authority through 2024 for the requirement for agencies that propose certain administrative actions that will increase direct spending to also propose at least one administrative action that will decrease direct spending by at least the same amount (commonly known as administrative pay-as-you-go rules).

Many Americans have accrued some form of debt related to education, and the Fiscal Responsibility Act terminates the suspension of federal student loan payments; expands the work requirements for the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program; and expedites the permitting process for certain energy projects.

Texas Representatives who voted ‘Aye’ include Jodey Arrington (R), Brian Babin (R), Michael C. Burgess (R), Dan Crenshaw (R), Monica De La Cruz (R), Jake Ellzey (R), Kay Granger (R), Michael T. McCaul (R), Troy Nehls (R), and August Pfluger (R).

The Texas Representatives who voted ‘No’ include John R. Carter, Michael Cloud, Pat Fallon, Tony Gonzales, Lance Gooden, Wesley Hunt, Ronny Jackson, Morgan Luttrell, Nathaniel Moran, Chip Roy, Keith Self, Pete Sessions, Beth Van Duyne, Randy Weber Sr., and Roger Williams.

In other news, Texas Representative Jodey Arrington (R) announced the Book Minimum Tax Repeal Act. The new legislation is cosponsored by Wyoming Senator John Barrasso (R).

“I am proud to work with @SenJohnBarrasso to introduce the Book Minimum Tax Repeal Act to protect American competitiveness and working families from even higher prices, fewer jobs, and lower wages,” tweeted Rep. Arrington.

Rep. Arrington took issue with the “book minimum tax” and claimed that it will hurt more than it will help.

“The book minimum tax is nothing more than a tried-and-failed tax hike that will undermine domestic investment, job creation, and U.S. manufacturing. This tax compliance nightmare gives unprecedented power to unelected bureaucrats and Democrat special interest carve outs,” said Rep. Arrington.

The Book Minimum Tax Repeal Act’s co-sponsor stated that the U.S.’s priorities should be energy-focused.

“Companies in the United States need to be focused on creating more American jobs and unleashing American energy. Reckless and complicated taxes like this undermine our supply chain, threaten our energy security, and send jobs and investment overseas,” said Senator Barrasso.