# Plain Language Summary: Fiscal Responsibility Act of 2023

This bill is essentially a deal that raises the government's borrowing limit (called the debt ceiling) while also making changes to federal spending and certain social programs. Think of it like a household increasing its credit card limit, but only if they agree to cut back on spending and make other changes.

The bill has four main parts. First, it caps how much the federal government can spend on discretionary items (things like defense, infrastructure, and agency operations) for the next two years, essentially freezing spending at current levels with only minimal increases. Second, it takes back about $20 billion in unspent money that various federal agencies have sitting around and redirects it to reduce the deficit. Third, it makes changes to welfare and food assistance programs by tightening work requirements—people receiving benefits like SNAP (food stamps) and Temporary Assistance to Needy Families will face stricter rules about working or looking for work, with fewer exceptions allowed. Fourth, it resumes federal student loan payments and interest that had been paused during the pandemic.

The bill also includes provisions aimed at speeding up construction projects, particularly energy infrastructure like pipelines, by streamlining the permitting process. Additionally, it reduces funding for the IRS, which means fewer resources for tax enforcement. For most working Americans, the practical impact depends on their situation: if you receive government assistance, the stricter work requirements could affect your benefits; if you have federal student loans, you'll need to resume payments; and if you're concerned about the deficit, the spending caps and fund rescissions are intended to address that. The bill essentially trades a higher debt ceiling for spending restraint and program changes that supporters argue promote fiscal responsibility.

Fiscal Responsibility Act of 2023

McHenry, Patrick T.

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 <ul> <li> rescind certain unobligated funds that were provided to address COVID-19 and to the Internal Revenue Service;</li> <li> provide funding for the Department of Veterans Affairs Cost of War Toxic Exposure Fund;</li> <li>provide funding for the Department of Commerce Nonrecurring Expenses Fund;</li> <li> 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);</li> <li>terminate the suspension of federal student loan payments; </li> <li> expand the work requirements for the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program; and </li> <li> expedite the permitting process for certain energy projects. </li> </ul>