WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY), chairman of the Federal Spending Oversight and Emergency Management (FSO) Subcommittee for the Homeland Security and Governmental Affairs Committee (HSGAC), introduced his “Pennies Plan” federal budget to get Washington’s spending under control and make it a more efficient and effective steward of the American people’s tax dollars.
“A balanced federal budget isn’t a pie-in-the-sky dream or empty rhetoric. Once again, I am introducing a concrete plan that is achievable and allows Congress maximum flexibility to prioritize spending. It leads the way toward fiscal responsibility, an even stronger economy, and a future full of opportunity for the American people,” said Dr. Paul.
As spending and debt continue to skyrocket, Dr. Paul’s budget simply states that for every on-budget dollar the federal government spent in Fiscal Year 2019, it spend two pennies fewer a year (a cut of two percent per year) for the next five years (at which point balance is reached), with spending then growing at two percent for five years afterward.
Dr. Paul’s budget reforms Congress’ reconciliation and budget processes – all without making any changes to Social Security – and includes instructions that would help pave the way for making the middle-class tax cuts permanent and further expanding access to Health Savings Accounts (HSAs).
You can find more background on Dr. Paul’s proposal below, and you can read his budget HERE.
Dr. Rand Paul’s Balanced Budget:
• Reduces spending by $183.1B in FY20 and by $11.3T over 10 years relative to baseline.
• Total spending still increases by 18.2 percent over the ten-year window. Only in Washington could an 18.2 percent increase be characterized as a “cut.”
• Balances without making any changes to Social Security.
• Makes no specific policy assumptions – all the savings are reflected in a new budget function (Function number 930: New Efficiencies, Consolidations, and Other Savings). This budget sets a goal of balance and then calls on Congress to use the tools provided to make the changes in law needed to achieve that objective.
Reiterates fundamental principles
• As policy debates present diametrically opposed visions of our country’s future, Dr. Paul’s budget establishes a sense of Congress that the United States will not be a socialist nation.
Paves the way for continued reform
• Provides reconciliation instructions to the Senate Finance Committee to make middle class tax relief permanent.
• Creates a reserve fund to allow for expansion of Health Savings Accounts (HSAs).
Reconciliation and Budget Process Reform
• Provides reconciliation instructions to eight committees with mandatory spending, ensuring every eligible committee participates in the reconciliation process, as was the process’ original purpose.
• Raises the waiver threshold for all budget points of order so the Senate is held to a higher standard.
• Makes the budget spending totals enforceable for 10 years instead of just one.