Kurt's Work

Congressman Kurt Schrader today hailed the passage of H.R. 2920, establishing a new “pay-as-you-go” (PAYGO) requirement for Congressional spending.

As a member of the Oregon Legislature, and its chief budget writer, Congressman Schrader developed a reputation for fiscal responsibility and a commitment to keep spending in line with what the state could afford. Congressman Schrader is an original co-sponsor of the measure that passed the U.S. House of Representatives today by a bipartisan 265-166 margin. Statutory PAYGO will require Congress to pay for any new spending or tax cuts.

“As a small business owner, and father of five, I know how important it is to live within your means,” said Schrader. “The American people expect the same responsibility from their federal government. However, Statutory PAYGO is not a panacea for our fiscal health.  Hard choices remain.  As our economy recovers, we must cut spending, return to budget surpluses, and begin to pay down the national debt.”

This legislation will require all new policies that reduce revenues or expand entitlement spending be offset over five and ten years. In doing so, this legislation will force a serious examination of wasteful subsidies in the budget and tax loopholes that can be eliminated to offset more worthwhile programs. By adhering to fiscal responsibility, we ensure that we can afford to fund America’s most important priorities for future generations.

In the 1990s, the Clinton Administration worked with a Republican Congress to turn deficits into record surpluses. One of the key tools in this transformation was the PAYGO rule, which compelled Congress to find savings for the dollars it spent. In 2002, PAYGO provisions were allowed to expire and cleared the way for policies that wiped out those surpluses. The bill passed by the House today does not have an expiration date.

The bill now heads to the U.S. Senate for its consideration. You can see a video of the Congressman speaking on the House floor about the bill by clicking here: http://www.youtube.com/watch?v=gc-Qa4CzrNs