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April 21, 2023
Dear John,
A Tipping Point
The share of mandatory federal spending has more than doubled in less than sixty years. In 1965, defense and discretionary spending totaled 66% of our spending—now they make up just over 25%. As spending continues to grow, mandatory program expenditures are increasing, taking up 71% of the budget. We’re also facing a historic debt crisis, record inflation, and high interest rates.
Congress and President Biden are tasked with creating a new budget and addressing the debt limit crisis. The clock is ticking, and there are less than six weeks to agree on a solution.
If we don’t act now, our deficits are on track to double from $1.4 trillion to $2.9 trillion by 2033. We are at a tipping point.
How do we fix this?
First, we need to return to Fiscal Year 2022’s non-defense discretionary spending levels, which would save us $1.5 trillion over the next ten years. If we hold our discretionary spending to a 1% increase over the next decade, we save another $3 trillion.
Next, we need a return to pro-growth policies. Reducing burdensome regulations, incentivizing domestic energy production, and increasing investment in America. By growing our economy at 1% higher than the Congressional Budget Office baseline, we will generate an extra $3 trillion in revenue over the next ten years. House Republicans’ HR 1, the Lower Energy Costs Act, would get us on track to accomplish this goal.
Then, in the long-term, we need to seriously reform mandatory spending in a bipartisan way. Otherwise, we’ll face the consequences—Medicare and Social Security are on a fast track to insolvency. This is an outcome no one wants.
Inaction is failure.
House Republicans took action. This week, we introduced our bill to address the debt limit crisis. The Limit, Save, Grow Act caps Washington’s irresponsible spending, saves taxpayer dollars, and grows the economy. It does all three in a sensible and responsible way.
We refuse to allow inaction. President Biden should take our proposal seriously and come to the table to solve our nation’s spending crisis.
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