U.S. Congressman Kenny Marchant (TX-24) has introduced H.R. 3442, the Debt Management and Fiscal Responsibility Act, to establish a more credible framework for debt reduction by bringing greater accountability, transparency, and discipline to the debt limit process. The legislation would require the Treasury Secretary to appear before Congress prior to any date on which the administration anticipates that the nation will reach the debt limit. Additionally, the Treasury Secretary would be required to provide testimony and detailed reports on: the national debt and its key drivers; explicit measures for short, medium, and long-term debt reduction; and regular progress reports on debt reduction measures.
Marchant issued the following statement regarding the bill’s introduction:
“Our national debt stands at $18 trillion and rising. If left unchecked, it poses a significant risk to the long-term health and stability of the American economy. Reducing the debt responsibly and returning public finances to a more sustainable path must be top national priorities. That is why I have introduced the Debt Management and Fiscal Responsibility Act. This legislation establishes a more credible framework for debt reduction by requiring strict accountability, transparency, and discipline in the debt limit process.
“Currently, the administration is able to request a debt limit increase without providing a clear-eyed account of the debt, its key drivers, and its risks or consequences to the economy. The Debt Management and Fiscal Responsibility Act calls for any such request to be accompanied by detailed reports on the state of the debt and its composition, proposals to reduce the debt in the short-, medium-, and long-term, and regular updates on debt reduction progress. The bill also requires the Treasury Department to make these documents publicly available in a central online repository. This would allow all Americans to thoroughly examine the nation’s debt for themselves and evaluate whether the administration is following through on efforts to get the nation’s fiscal house in order.
“The Debt Management and Fiscal Responsibility Act is a responsible part of the effort to reduce our national debt. The bill holds Washington more accountable for every dollar borrowed and spent. This tough but fair framework is exactly what’s needed to address our nation’s fiscal challenges and ensure a more prosperous future for our children and grandchildren.”
The legislative text of the Debt Management and Fiscal Responsibility Act can be found here.
To read a one-page summary of the bill, please click here.