Administrative Pay-As-You-Go Act: Agencies Must Offset New Spending Costs
This Act aims to institutionalize and strengthen the 'Pay-As-You-Go' rule for administrative actions that increase direct government spending. If a federal agency proposes a new discretionary rule or program that costs more money, it must simultaneously propose comparable spending cuts elsewhere to offset the increase. This mechanism is designed to control federal spending, restore fiscal security, and ensure agencies are accountable for the financial impact of their decisions, ultimately affecting the nation's economic stability.
Key points
Increased Agency Accountability: Federal agencies must estimate and report the budgetary effects of any new, non-mandatory administrative action (like a rule or guidance) that increases direct spending.
Mandatory Cost Offsets: If an action increases spending, the agency must propose one or more other administrative actions to reduce spending by a comparable amount (net-zero requirement).
OMB Oversight and Waivers: The Director of the Office of Management and Budget (OMB) reviews these proposals and can reject them if offsets are insufficient, though waivers are possible for essential services or public interest.
Expired
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