Fiscal Responsibility Act of 2023
Latest action (3 Jun 2023): Became Public Law No: 118-5.
What this bill does
H.R. 3746, the Fiscal Responsibility Act of 2023, was a bipartisan agreement to raise the federal debt limit while imposing new constraints on federal spending. It sets statutory caps on discretionary (non-entitlement) federal spending for fiscal years 2024 and 2025, separating funding into defense and non-defense categories, and establishes non-binding spending targets for fiscal years 2026 through 2029. It rescinds certain previously appropriated but unspent federal funds, including a reduction in unobligated IRS funding, and creates new rules requiring agencies to offset costs of certain administrative actions that increase mandatory spending. The bill also ends the pandemic-era pause on federal student loan payments and interest accrual, changes work-requirement rules and exemptions for the Temporary Assistance for Needy Families and Supplemental Nutrition Assistance Program (SNAP) benefit programs, and includes provisions intended to speed up permitting for energy and pipeline projects, including the Mountain Valley Pipeline.
The bill affects federal agencies subject to annual appropriations, recipients of TANF and SNAP benefits, federal student loan borrowers, and entities involved in energy infrastructure permitting. It also changes procedures Congress itself must follow when writing future appropriations and budget resolutions through fiscal year 2025.
H.R. 3746 was introduced on May 29, 2023, passed both chambers of Congress, and was signed into law by the President on June 3, 2023, ahead of the deadline set by the Treasury for avoiding a default on federal debt obligations. No further congressional action is required for the bill to take effect, though some of its spending and budget provisions will continue to apply in future appropriations cycles through the dates specified in the law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Fiscal Responsibility Act of 2023
This act increases the federal debt limit, establishes new discretionary spending limits, rescinds unobligated funds, expands work requirements for federal programs, and modifies other requirements related to the federal budget process.
DIVISION A--LIMIT FEDERAL SPENDING
TITLE I--DISCRETIONARY SPENDING LIMITS FOR DISCRETIONARY CATEGORY
(Sec. 101) This section establishes new discretionary spending limits (also known as spending caps) for FY2024 and FY2025 that are enforced with sequestration (i.e., automatic, across-the-board spending reductions). The Congressional Budget Office (CBO) has estimated that the spending limits will reduce spending below the levels included in its baseline projections.
In addition, this section extends and establishes new limits for several adjustments to discretionary spending limits that are permitted under current law to accommodate additional appropriations for certain activities. These adjustments apply to spending for
• continuing disability reviews and redeterminations,
• health care fraud and abuse control, and
Timeline
3 Jun 2023
Became Public Law No: 118-5.
Common questions
- What does H.R. 3746 do?
- H.R. 3746, the Fiscal Responsibility Act of 2023, was a bipartisan agreement to raise the federal debt limit while imposing new constraints on federal spending. It sets statutory caps on discretionary (non-entitlement) federal spending for fiscal years 2024 and 2025, separating funding into defense and non-defense categories, and establishes non-binding spending targets for fiscal years 2026 through 2029. It rescinds certain previously appropriated but unspent federal funds, including a reduction in unobligated IRS funding, and creates new rules requiring agencies to offset costs of certain administrative actions that increase mandatory spending. The bill also ends the pandemic-era pause on federal student loan payments and interest accrual, changes work-requirement rules and exemptions for the Temporary Assistance for Needy Families and Supplemental Nutrition Assistance Program (SNAP) benefit programs, and includes provisions intended to speed up permitting for energy and pipeline projects, including the Mountain Valley Pipeline. The bill affects federal agencies subject to annual appropriations, recipients of TANF and SNAP benefits, federal student loan borrowers, and entities involved in energy infrastructure permitting. It also changes procedures Congress itself must follow when writing future appropriations and budget resolutions through fiscal year 2025. H.R. 3746 was introduced on May 29, 2023, passed both chambers of Congress, and was signed into law by the President on June 3, 2023, ahead of the deadline set by the Treasury for avoiding a default on federal debt obligations. No further congressional action is required for the bill to take effect, though some of its spending and budget provisions will continue to apply in future appropriations cycles through the dates specified in the law.
- Has H.R. 3746 become law?
- Yes. H.R. 3746 has been enacted. Status last updated 3 Jun 2023.
- Who sponsored H.R. 3746?
- H.R. 3746 was sponsored by Rep. McHenry, Patrick T. [R-NC-10] (R-NC), with 0 cosponsors.
- What's the latest action on H.R. 3746?
- Became Public Law No: 118-5. (3 Jun 2023).
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