Momentum is building in Congress for a long-overdue effort to confront the nation’s unsustainable fiscal trajectory. With the introduction of S.4012, the Fiscal Commission Act introduced by Senator John R. Curtis (R-UT), lawmakers are once again putting forward a bipartisan framework to stabilize the debt.
This bill would create a bipartisan commission in Congress to address the United States’ long-term budget outlook and promote fiscal responsibility and reform. Curtis’s bill is the Senate companion of H.R. 3289, introduced last May by Representatives Bill Huizenga (R-MI) and Scott Peters (D-CA). Public debt is growing at an unsustainable rate; bipartisan cooperation is necessary to stabilize and reduce it before it is too late.
Why the Commission Is Imperative
Because of chronic overspending, U.S. debt has surpassed $39 trillion, and deficits are expected to be $1.9 trillion this year. That means there is about $114,000 in government debt for every person in the United States, young and old. Without efforts to curb the rising deficit, the debt-to-GDP ratio is expected to rise from 101% from the end of 2026 to 175% in 2056.
Growing government debt increases interest rates, disincentivizes investment, and heightens the risk of a financial catastrophe, leaving the taxpayer vulnerable and families worse off. Without serious change, the American system is at risk. This bill is a breath of fresh fiscal air that promises to help curb the imposing debt crisis the United States faces.
What the Bill Would Do
The Fiscal Commission would be composed of equal numbers of members from each party in the Senate and the House of Representatives, totaling 16 members. Whenever the Commission votes on actions, it needs a majority and at least two members of each party. No side can unilaterally make a decision without the agreement of members of the opposing party.
The Commission will seek to improve the United States’ fiscal condition from several angles. It would be tasked with stabilizing the debt-to-GDP ratio so that it does not exceed 100% by 2039. The Commission would also be required to improve the solvency of federal program trust funds over a minimum of 75 years, and, more broadly, to meaningfully improve the long-term fiscal condition of the federal government.
The Commission will have additional functions as outlined in the bill, including:
Education: Teaching the American people about the fiscal state of the United States and the long-term implications of deteriorating fiscal health through national campaigns.
Policy Proposals: Proposing policies to Congress aligned with its inherent goals.
Report: Reporting to the public and Congress any budgetary effects due to changes in employment, output, capital stock, or other macroeconomic factors.
Hearings: Holding a minimum number of hearings. They may require testimony from executive branch officials and members of Congress.
The Fiscal Commission’s policy proposals would receive a fast-track process for an up-or-down vote in each chamber, limiting debate and amendments and bypassing the potential for gridlock. This process would enable more spending cuts to receive a speedy and fair vote.
The Congressional Budget Office (CBO) would be required to provide the Fiscal Commission with information on the long-term budgetary outlook of legislative language. This would allow the CBO to positively influence decision-making and provide the Commission with the necessary information to achieve its goals.
The bill, which has nine cosponsors, is currently in the Senate Committee on Rules and Administration.
Conclusion
Currently, the federal debt stands at $39 trillion—well above the value of U.S. GDP—and continues to rise. The bipartisan Fiscal Commission Act proposed by Sen. Curtis and Reps. Huizenga and Peters would help improve the trajectory of the debt crisis.
Success by the Commission would likely be measured in meaningfully reducing the debt-to-GDP ratio, improving congressional oversight, and educating both Congress and the American taxpayer about the fiscal imbalance.
As the debt crisis worsens, Congress should seize the opportunity to restore fiscal responsibility and stabilize the debt before it is too late.