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Automatic Debt Limit Increase Linked to Mandatory Debt Reduction Targets

This Act changes the rules for raising the federal debt limit to prevent financial crises and government shutdowns. It introduces an automatic debt limit increase if Congress adopts a budget resolution that includes a mandatory debt reduction plan. If Congress fails to act, the President can raise the limit, but must simultaneously submit a debt reduction proposal for expedited Congressional review.
Key points
Automatic Debt Limit Increase: Reduces the risk of government paralysis and financial instability caused by political disputes over national debt.
New Requirement: Any debt limit increase must be tied to a concrete plan to reduce the national debt relative to the economy (GDP) by at least 5% over 10 years.
Presidential Authority: If Congress fails to act, the President can temporarily raise the limit, compelling Congress to consider the President's debt reduction proposal under expedited procedures.
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Additional Information
Print number: 118_HR_9735
Sponsor: Rep. Peters, Scott H. [D-CA-50]
Process start date: 2024-09-20
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Responsible Budgeting Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9735.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-09-20.

What are the main provisions?

Key points include:

  • Automatic Debt Limit Increase: Reduces the risk of government paralysis and financial instability caused by political disputes over national debt.
  • New Requirement: Any debt limit increase must be tied to a concrete plan to reduce the national debt relative to the economy (GDP) by at least 5% over 10 years.
  • Presidential Authority: If Congress fails to act, the President can temporarily raise the limit, compelling Congress to consider the President's debt reduction proposal under expedited procedures.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Peters, Scott H. [D-CA-50].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy