Congress locks in four-year spending caps, constraining discretionary programs.

What it does

This bill amends the 1985 Balanced Budget Act to set hard spending caps on discretionary federal spending for fiscal years 2026–2029, ranging from $1.62 trillion to $1.67 trillion per year. It locks in spending limits that would constrain Congress's ability to increase discretionary outlays above these ceilings without triggering automatic cuts elsewhere.

Why we flagged it

The bill's sole operative function is to insert four new spending caps into the Balanced Budget Act's enforcement framework. It is a procedural/fiscal mechanism, not a substantive policy change, and does not name beneficiaries or create new programs.

What the text implies

• Spending caps may force Congress to choose between defense, infrastructure, healthcare, and education funding without explicit prioritization, shifting power to the appropriations process and potentially favoring programs with stronger lobbies.
• The bill does not adjust caps for inflation, population growth, or economic conditions, meaning real purchasing power of discretionary spending declines over the four-year period unless Congress votes to raise the caps.
• Caps may interact with existing sequestration rules (automatic cuts) in ways not visible from this text alone; the full effect depends on how the Office of Management and Budget implements the amended Section 251(c).

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill imposes spending discipline that may reduce long-term deficits and inflation (a public benefit), but it also constrains Congress's flexibility to fund discretionary programs—including defense, infrastructure, education, and social services—without triggering automatic cuts. The net effect on citizens depends on which programs are cut and whether the deficit reduction materializes; the bill itself does not specify which programs bear the cost.

Named in the bill

Congress, Office of Management and Budget (OMB), Balanced Budget and Emergency Deficit Control Act of 1985, Fiscal Responsibility Act of 2023

Where it stands

3 cosponsors: 3 Republicans.

• Jun 26, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jun 26, 2025 — Referred to House Committee on the Budget · Congress.gov: “Referred to the House Committee on the Budget”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

2 lobbying clients named this bill on 4 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $701,250 in lobbying spend. A filing names 44 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 41% of bills with at least one filing.

Glenn Grothman, the sponsor, reported $325,000 in PAC receipts in the 2026 cycle.

• National Treasury Employees Union — $690,000 on 2 filings
• Job Creators Network — $11,250 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.