FOR IMMEDIATE RELEASE:
April 18, 2018
Contact: Press@paul.senate.gov, 202-224-4343
WASHINGTON, D.C. - Today, U.S. Senator Rand Paul (R-KY) introduced his own “Penny Plan” federal budget that will balance within five years by assuming the repeal of the Bipartisan Budget Act of 2018 and utilizing the “Penny Plan.” Dr. Paul’s budget includes instructions that would pave the way for the expansion of Health Savings Accounts (HSAs) to help Americans more easily cover their health care costs.
“I ran for office to put a stop to Washington’s out-of-control spending and skyrocketing debt. It’s time for conservatives to govern like conservatives, and my budget plan gives our Republican-controlled Congress a chance to prove to the American people that it is serious about getting our fiscal house in order,” said Dr. Paul.
Dr. Paul’s balanced budget also reforms Congress’ reconciliation and budget processes - all without making any changes to Social Security. Senate rules allow any senator to offer a budget if Senate leadership and the Budget committee do not report out a budget by April 1. As the bill would be a privileged motion, Dr. Paul’s budget will receive a vote on the Senate floor.
You can also find a full budget report HERE. This budget report is a plain-text articulation of what is included in the budget resolution. The report also provides historical context, rationales, and supporting arguments for Dr. Paul’s proposed changes, including those both inside and outside the scope of simply changing spending levels.
Dr. Rand Paul’s Balanced Budget:
- Dr. Paul’s budget simply states that for every on-budget dollar the federal government spent in FY18, excluding the BBA, it spend one penny less for the next five years (at which point balance is reached), with spending then growing at one percent thereafter.
- Reduces spending by $404.8B in FY19 and by $13.35T over 10 years relative to baseline.
- Total spending still increases by 14.6 percent over the ten-year window. Only in Washington could a 14.6 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.
The BBA of 2018
- The Bipartisan Budget Act of 2018 raised the discretionary spending caps imposed by the Budget Control Act of 2011 nearly $300 billion. With federal debt over $21 trillion, the negative impact of borrowing more money for this spending outweighs any benefit derived from it.
Expansion of Health Savings Accounts
- Provides reconciliation instructions to the Senate Finance Committee to allow for expanded HSAs. Dr. Paul’s HSA expansion would allow patients to save for their entire out-of-pocket costs and use HSAs to pay premiums, while also widening eligible disbursements to include supplements, over-the-counter medicine, and other activities that promote wellness and reduce the overall cost of health care.
Reconciliation and Budget Process Reform
- Provides reconciliation instructions to all 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.