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H.R. 5591House118th Congress (2023-2025)In Committee

Spending Safeguard Act

To establish a direct spending safeguard limitation on any direct spending program without a specific level of authorized spending, and for other purposes.

Sponsored by Virginia FoxxRep. Virginia Foxx (R-NC)
Introduced September 20, 2023

AI-Generated Summary

Updated January 20, 2026 at 11:38 AM UTC

The Spending Safeguard Act creates a cap on any federal direct‑spending program that lacks a specific dollar authorization. Within 90 days of a program’s enactment, the OMB must set a spending limit equal to 120% of the program’s estimated six‑year cost for defense, health, income‑security, and veterans programs, or 110% for all other programs. The law requires regular reporting and stops further obligations if a program reaches its limit, affecting the agencies that run those programs, the OMB, Treasury, and congressional budget committees.

Key Provisions

  • OMB must establish a spending‑safeguard limit for each qualifying direct‑spending program within 90 days of its enactment or reauthorization
  • The limit is set at 120% of the program’s six‑year cost for budget functions 050, 550, 600, 700, and 110% for all other functions
  • OMB must publish a public scorecard showing each program’s limit and track monthly spending reports from the Treasury
  • OMB submits biannual reports to the House and Senate Budget Committees on spending levels versus limits
  • If a program is projected to hit its limit within six months, OMB reports this to the relevant committees within 15 days
  • When a program reaches its limit, no new funds may be obligated after 30 days, and OMB notifies the committees
  • Federal agencies must inform program participants that the program is subject to a spending safeguard that could affect future benefits
  • The Act adds a reporting requirement to the President’s budget submission and prohibits new authorizations of additional funds for the Act itself

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on the Budget.

Budget Committee

September 20, 2023

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HouseIntro Referral

Introduced in House

September 20, 2023

HouseIntro Referral

Referred to the House Committee on the Budget.

Budget Committee

September 20, 2023

Bill Text

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Introduced in HouseIssued September 20, 2023

I

118th CONGRESS

1st Session

H. R. 5591

IN THE HOUSE OF REPRESENTATIVES

September 20, 2023

Ms. Foxx introduced the following bill; which was referred to the Committee on the Budget

A BILL

To establish a direct spending safeguard limitation on any direct spending program without a specific level of authorized spending, and for other purposes.

1.

Short title

This Act may be cited as the Spending Safeguard Act.

2.

Spending limitation on direct spending programs

(a)

Establishment of spending safeguard limitation

(1)

In general

The Director of the Office of Management and Budget shall establish a spending limitation (in this Act referred to as a spending safeguard limitation) with respect to any direct spending program not later than 90 days after any such program is enacted or reauthorized (as the case may be).

(2)

Determination of spending safeguard limitation

The spending safeguard limitation established under paragraph (1) for a direct spending program shall be equal to—

(A)

with respect to any such program within budget function 050 (Defense), 550 (Health), 600 (Income Security), or 700 (Veterans Benefits and Services), 120 percent of the cost of the program; and

(B)

with respect to any such program within any other budget function, 110 percent of the cost of the program.

(3)

Determination of cost of program

For purposes of paragraphs (2) (A) and (B), the cost of the program shall be the estimated six-year cost of the program, as determined by the Director using the scorecards or estimate (as the case may be) applicable to the program under section 4 of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933).

(b)

Spending safeguard limitation scorecards

(1)

In general

The Director shall maintain and make publicly available a spending safeguard limitation scorecard displaying the spending level for any direct spending program that is subject to a spending safeguard limitation pursuant to this Act.

(2)

Monthly costs

Not later than 7 days after the end of each month beginning after the first full month in which such a direct spending program is operational, the Secretary of the Treasury shall transmit to the Director a report listing the total amount of spending for any direct spending program listed on the scorecard.

(3)

OMB biannual report

After the end of any six-month period, the Director shall submit a report to the Committees on the Budget of the House of Representatives and the Senate containing the total level of spending for any such direct spending program and the relation between such level and the spending safeguard limitation applicable to such program.

(c)

President budget submissions

(1)

Annual

Section 1105(a) of title 31, United States Code, is amended by adding at the end the following:

(40)

a report on the total level of spending for any direct spending program subject to a spending safeguard limitation pursuant to the Spending Safeguard Act, and the relation between such level and the spending safeguard limitation applicable to such program.

.

(2)

Mid-session

Section 1106(a)(1)(C) of such title is amended by striking section 1105(a)(8) and (9)(B) and (C) and inserting section 1105(a) (8), (9) (B) and (C), and (40).

(d)

Procedures in case of breach

(1)

Spending limitation breach report

If, during any of the six years used to determine the cost of a direct spending program pursuant to subsection (a)(3), the Director determines, using the reports submitted under subsection (b)(2), that a direct spending program listed on the scorecard established under subsection (b) will reach the applicable spending safeguard limitation within six months, the Director shall transmit, not later than 15 days after the date of such determination, a report to the Committees on the Budget of the House of Representatives and the Senate and the committees that have jurisdiction over the program.

(2)

Obligation limitation

If, during any of such six years, the Director determines using the reports submitted under subsection (b)(2) that such a direct spending program has reached the applicable spending safeguard limitation—

(A)

effective 30 days after such determination, no funds may be obligated to carry out such program; and

(B)

on the date of such determination, the Director shall submit a report to the Committees on the Budget of the House of Representatives and the Senate and the committees that have jurisdiction over the program that such an obligation limitation has been imposed.

(e)

Agency procedures

Any Federal agency implementing a direct spending program listed on the scorecard established under subsection (b) shall ensure that any contract, offer of benefits, or other material provided to the program participants includes information specifying that the program is subject to a spending safeguard limitation that may impact future availability of funds to pay benefits.

(f)

Definitions

In this Act—

(1)

the term Director means the Director of the Office of Management and Budget;

(2)

the term direct spending has the meaning given such term in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)(8)); and

(3)

the term direct spending program—

(A)

means any Federal program funded by direct spending that—

(i)

is enacted or reauthorized after the date of enactment of this Act; and

(ii)

does not have, in statute, a specific level (expressed as a dollar amount) of authorization of appropriations; and

(B)

does not include Medicare (budget function 570) or Social Security (budget function 650).

(g)

Prohibition on new authorization of funding

No additional funds are authorized to be appropriated to carry out this Act.