Three Measures Would Pay Down Nat’l Debt; Place Caps On Spending, Deficits; Stand-alone Vote On Debt Limit

Washington, DC — Congressman Leonard Lance (NJ-7) today announced a legislative package of bills aimed to control runaway federal spending and limit our Nation’s ever-growing national debt and deficits.

The “Pay It Back Act of 2009” is legislation introduced by Lance to apply recaptured taxpayer investments toward reducing the national debt — including unspent funds from the American Recovery and Reinvestment Act of 2009 (federal stimulus) as well as the Troubled Asset Relief Program (TARP).

The “Deficit Reduction Act of 2009” seeks to reduce the federal budget deficit in two significant ways. First, the bill would set fiscally responsible discretionary spending caps for the next ten years beginning in 2011. If Congress exceeds those caps, the Office of Management and Budget (OMB) would be required to make uniform spending cuts across all sectors of the federal government — called “sequestration.” Social Security, veterans programs, and other categories of spending would be exempt from the uniform cut.

Second, the Deficit Reduction Act limits the yearly deficit as a percentage of the gross domestic product. Again, if Congress exceeds the deficit limits or discretionary spending limits, OMB will order a sequestration, exempting Social Security, veterans programs and other categories of spending.

Concerning the debt limit, Lance is a sponsor of a resolution amending the Rules of the House to require that any increase in the statutory debt limit be considered as a stand-alone bill.

The Seventh District lawmaker has been leading the call in Congress for a clean, up-or-down vote on congressional action to raise the Nation’s debt ceiling after reports indicated congressional leaders are trying to avoid a vote on the issue. The Courier News said Lance was “fighting the right fight” while adding that Congress should not “duck debt debate with sneaky tactics.”

“Out-of-control spending and record national debt and deficits should be of grave concern to each and every American,” Lance said. “Today I am introducing a three-pronged approach aimed to put our country back on a path of fiscal discipline. We owe it to future generations to get our fiscal house in order now.”

Visit lance.house.gov/debt to learn more about Congressman Lance’s fiscally responsible efforts.

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