Problem Solvers endorses Reed’s budget principles to bolster economy

The bipartisan Problem Solvers Caucus endorsed a set of budget principles proposed by caucus co-chair U.S. Rep. Tom Reed (R-NY) that could help reduce the federal deficit once the COVID-19 pandemic ends.

“For far too long, we have allowed our nation’s budget process to fall into disarray and partisan spending priorities at the expense of working families today and future generations of Americans who will bear the brunt of our federal deficit,” Rep. Reed said. “The principles prepared by the caucus should serve as a critical guide to how our nation reorganizes and reforms its federal budget after we’ve delivered short-term relief for the American people.”

The federal deficit — which is the gap between what the U.S. spends and what it earns through tax receipts and other revenue — has ballooned to a record $3.1 trillion during the 2020 fiscal year due to the pandemic, according to official data released this week.

To better confront the resulting economic fallout, more than 75 percent of the 50-member Problem Solvers Caucus endorsed the budget principles initially introduced by Rep. Reed and caucus member U.S. Rep. Scott Peters (D-CA).

According to information provided by Rep. Reed’s office, the Problem Solvers Budget Principles include support for: a sustainable, fiscally responsible budget to invest in Americans and to be good stewards of taxpayer dollars; paying down U.S. debt when the nation’s economy recovers; recognizing that the federal government’s balance sheet can afford targeted spending to mitigate the effects of economic downturns, disasters and emergencies; and sustained assistance to the economy while the COVID-19 pandemic persists and while the unemployment rate remains at record levels.

The principles also call for support for transparency measures to strengthen awareness of the nation’s finances, accountability mechanisms to help Congress demonstrate greater accountability in navigating the decisions necessary to improve the country’s fiscal health, and responsible, thorough plans to establish budgetary goals to lower the government’s debt, among many others.