Fiscal Responsibility Act of 2023
This bill increases the federal debt limit, establishes new discretionary spending limits, rescinds unobligated funds, and expands work requirements for federal programs.
Specifically, the bill suspends the federal debt limit through January 1, 2025, and increases 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 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;
- provide funding for the Department of Commerce Nonrecurring Expenses Fund;
- provide 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);
- terminate the suspension of federal student loan payments;
- expand the work requirements for the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program; and
- expedite the permitting process for certain energy projects.