The federal government’s chronic overspending is no longer a distant concern, it is a looming fiscal threat. Annual federal deficits now exceed $1 trillion, 6% of GDP, while total federal debt is on track to surpass the size of the U.S. economy.
Confronted with this unsustainable trajectory, lawmakers must set a credible and practical course for restoring fiscal discipline. A bipartisan reform option, the 3 Percent Deficit-to-GDP Resolution (H.Res. 981), recently introduced by Bill Huizenga (R-MI) and Scott Peters (D-CA), offers a constructive starting point for meaningful fiscal progress.
The resolution establishes a goal of reducing the federal deficit to 3% of gross domestic product within five years, providing lawmakers with a clear fiscal benchmark as they consider future legislation.
This target is ambitious but achievable. Unlike arbitrary dollar caps that quickly become outdated, a GDP-based benchmark adjusts for economic growth and recognizes that fiscal sustainability requires both spending restraint and a growing economy.
Reaching that target will require a combination of pro-growth tax policy and disciplined control of federal spending. It will also require better budget information. Pairing this resolution with reforms to the Congressional Budget Office that NTUF has recommended would give lawmakers more realistic cost estimates and economic assumptions as they work to comply with the Huizenga–Peters resolution, strengthening accountability and reducing the risk that fiscal goals are undermined by flawed scorekeeping.
The resolution has attracted meaningful bipartisan support, including backing from House Budget Committee Chairman Jodey Arrington (R-TX), demonstrating that this effort is more than a symbolic gesture. At a time when debt is growing faster than the economy, Huizenga and Peters’ 3 Percent Deficit-to-GDP Resolution offers a constructive and measurable benchmark to restore fiscal sanity.