# The Spending Safeguard Act: What It Does

This bill creates a new system to put spending caps on federal programs that don't already have a specific dollar limit written into law. When Congress creates or renews a spending program without setting a maximum amount, this bill requires the Office of Management and Budget to automatically set a spending limit within 90 days. The limit would be 10 percent higher than what the program is estimated to cost over six years for most programs, or 20 percent higher for defense, health, income security, and veterans benefits programs.

Once these limits are set, the government would track how much each program actually spends every month and publish this information publicly. If a program looks like it's going to hit its spending cap within six months, Congress gets a warning. If a program actually reaches its cap, the government would have to stop spending money on that program 30 days later—no new payments or benefits could be made until Congress takes action to change the rules.

The bill also requires federal agencies running these programs to tell people who receive benefits that their program has a spending limit that could affect whether they get paid in the future. Additionally, the President would have to include information about these spending limits in their annual budget proposals to Congress. The bill specifically excludes Medicare and Social Security from these new rules, so those programs would continue operating as they do now.

Essentially, this creates an automatic emergency brake on federal spending programs that don't have explicit caps. Supporters argue it prevents runaway spending, while critics might worry it could disrupt benefits or services if programs hit their limits unexpectedly.