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Introduction of "The Spending Control Act"

Press Release

Location: Washington, DC

Today, Congressman John Campbell (CA-48) introduced H.R. 3576, The Spending Control Act, as one part of a comprehensive set of nine reforms intended to completely replace Washington's broken budget process. Since the passage of the Budget Control Act in 1974, only once has Congress completed the entire budget process, including appropriations, by the beginning of the new fiscal year. As an illustration of this, today records the 952nd day since the Senate has even taken up, let alone pass, a budget. The system is clearly broken and needs reform. Campbell and the members of the House Budget Committee have offered a completely new budgeting process which will result in accountability, transparency, and spending restraint.

"Right now, 60% of government spending, made up of the entitlements and other federal programs, is on automatic pilot and not subject to an annual review by Congress," Campbell said in his introductory remarks. "This is one of the largest drivers of the unsustainable deficit crisis this nation faces today. The firm spending limits on entitlements in my bill will ensure that such spending will not increase unchecked year after year. The Spending Control Act will institute self-imposed limits that represent a promise to the American people that their government will not spend beyond its means."

House Budget Committee Chairman Ryan stated: "Congressman Campbell's leadership in moving this critical budget process reform forward is exactly the kind of example Washington needs more of. This reform is part of a larger package of nine bills that together create a comprehensive budget process reform aimed at fixing the way Washington spends money. Currently, the incentives are stacked against those like Congressman Campbell who want to control spending and ensure America tackles head-on the crushing burden of debt that is slowing economic growth today and threatening economic prosperity tomorrow. Lurching from budget crisis to budget crisis is no way to govern, and Congressman Campbell's legislation is a positive step in the right direction towards an honest and full accounting of the federal budget. When Washington can be honest about the true size and scope of our fiscal problems, only then can we engage in a much-needed debate over the nation's fiscal future and what kind of country we want to hand down to our kids and grandkids."

H.R. 3576, The Spending Control Act:

Moves government spending from 25% of GDP, where it is today, to 20% of GDP over the next 10 years.

Establishes binding limitations on federal spending and deficits -- all enforced by an automatic cut of no more than 4 percent of programs -- within each category if the program is growing faster than inflation. This cut comes from autopilot spending in three categories - Medicare, Medicaid and other direct spending.

Makes certain that each spending category is susceptible to sequester should outlay levels exceed those set in the House-passed budget resolution.

Replaces the failed budgetary gimmick of "Pay-As-You-Go" with the "Cut-As-You-Go" rule.
Campbell has been joined by original cosponsors, Chairman Paul Ryan (WI-01), Congressman Frank Guinta (NH-01), Congressman Marlin Stutzman (IN-03), and Congressman Todd Rokita (IN-04), in looking forward to full consideration of H.R. 3576 early next year.

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