In a new insight, Vice President for Economic Policy Gordon Gray breaks down the key proposals in the Fiscal Responsibility Act of 2023.

Key points:

• The Fiscal Responsibility Act of 2023 provides for an increase in the federal debt limit, suspends the federal debt limit until January of 2025, and puts restraints on certain elements of nondefense discretionary spending.
• The Act’s primary distinguishing feature is the reimposition of enforceable discretionary spending caps for fiscal years 2024 and 2025 that will save over $200 billion in the first two years.
• Other elements of the Act include modest reforms to certain social safety net programs, a new administrative PAYGO regime, as well as rescissions of certain COVID-19 funding provisions.

Read the analysis