The United States should reduce and maintain the federal unified budget deficit at or below 3 percent of gross domestic product (GDP), according to a newly introduced bipartisan resolution introduced by U.S. Reps. Bill Huizenga (R-MI) and Lloyd Smucker (R-PA).
“This resolution sets a fiscal benchmark and emphasizes a disciplined budget process,” said Rep. Huizenga, co-chair of the Bipartisan Fiscal Forum (BFF). “Adopting this measure will help prioritize federal spending today while protecting the financial well-being of the next generation of Americans.”
House Resolution (H.Res.) 981, known as the 3 Percent Resolution, would resolve that Congress should adopt a fiscal target to reduce the federal budget deficit to 3 percent of GDP or less as soon as possible and no later than the end of fiscal year 2030.
Following the achievement of the target, Congress then should continue to pursue further deficit reduction with the goal of achieving a balanced federal budget, according to the resolution’s text.
“The 3 Percent Resolution demonstrates that members of Congress from both sides of the aisle recognize not only the unsustainable trajectory of our national debt, but the urgency in which it needs to be addressed as well,” Rep. Huizenga said. “This is not an aspirational target; it is the minimum standard necessary to preserve America’s long-term economic security.”
H.Res. 981, which Rep. Huizenga sponsored on Jan. 7, has 14 cosponsors, including lead original cosponsor U.S. Rep. Scott Peters (D-CA), also a co-chair of the BFF. Other original cosponsors include U.S. Reps. Steve Womack (R-AR), Blake Moore (R-UT), Dusty Johnson (R-SD), Ron Estes (R-KS), and Jodey Arrington (R-TX).
“We are on an unsustainable fiscal path, and the window to change course before risking a sovereign debt crisis is rapidly closing. But this challenge is still solvable — and setting a realistic fiscal target that has bipartisan buy-in is critical towards putting our nation back on stable footing,” said Rep. Smucker. “This resolution builds on ongoing efforts in Congress to address the national debt by establishing a bipartisan benchmark for responsible fiscal governance. Our debt is the greatest long-term threat to our nation, and fixing our fiscal trajectory is essential to securing America’s economy for generations to come.”
The resolution also has gained support from the Committee for a Responsible Federal Budget, the National Taxpayers Union Foundation, the Peterson Solutions Fund, the Millennial Debt Foundation, BPC Action, and Americans for Prosperity.