Stop the Baseline Bloat Act of 2025
- Sponsor
- Rep. Grothman, Glenn [R-WI-6]
- Committees
- Budget Committee (primary)
- Last action
- Jun 11, 2025
Bottom line
This bill seeks to reform federal budget baseline calculations by preventing emergency and supplemental spending from being automatically incorporated into future spending projections, potentially leading to lower projected discretionary spending.
What it actually does
This bill amends the Balanced Budget and Emergency Deficit Control Act of 1985 to change how the Congressional Budget Office (CBO) calculates its baseline projections for discretionary appropriations. Specifically, it mandates that resources designated as an emergency requirement or provided in supplemental appropriations laws must be excluded from these baseline projections. The aim is to prevent temporary or extraordinary spending from automatically inflating the starting point for future budget discussions.
Proponents argue
Supporters argue that current CBO baseline practices, which incorporate emergency and supplemental spending into future projections, create an artificial inflation of the baseline. They contend that this 'baseline bloat' encourages higher future spending by making temporary increases appear as the new normal, thereby undermining fiscal discipline and making it harder to reduce the deficit. Excluding these temporary funds would provide a more accurate and fiscally conservative starting point for budget negotiations.
Opponents contend
Critics might argue that excluding emergency and supplemental appropriations from the baseline could create an unrealistic picture of government spending, especially if certain 'emergencies' become recurring or if supplemental appropriations are consistently used for ongoing needs. They might contend that the current baseline accurately reflects the actual spending trajectory, including necessary responses to unforeseen events, and that artificially lowering the baseline could lead to inadequate funding for critical government functions or force difficult cuts in other areas to meet a lower, less realistic baseline.
The bill text is very short and can be read quickly, but understanding its implications requires familiarity with federal budget processes and CBO baseline methodologies.
Section 2
Exclusion of Emergency and Supplemental Funds from CBO Baselines
This provision amends Section 257(c) of the Balanced Budget and Emergency Deficit Control Act of 1985. It instructs the Congressional Budget Office (CBO) to exclude funds designated as 'emergency requirements' and any resources provided in 'supplemental appropriations laws' when calculating its baseline projections for discretionary appropriations. This means that one-time or emergency spending will no longer automatically be assumed to continue in future years' budget forecasts, aiming to provide a more conservative starting point for budget discussions.
Supporters argue
Supporters argue this provision is crucial for fiscal responsibility, as it prevents temporary spending from becoming embedded in permanent budget expectations. They believe it will lead to more honest budgeting and make it easier to control discretionary spending growth by removing an artificial upward pressure on the baseline.
Critics contend
Opponents might argue that this change could make it harder for Congress to adequately fund critical government functions, especially if 'emergency' spending becomes a regular necessity (e.g., disaster relief, ongoing conflicts). They might contend that the current baseline, while imperfect, reflects the reality of federal spending and that this amendment could create an artificial constraint that forces difficult choices or leads to underfunding essential services.
Tradeoffs
The bill balances the desire for stricter fiscal discipline and more 'honest' baseline projections against the potential for creating an unrealistic budget picture that might not account for recurring needs or genuine emergency responses, potentially leading to future funding shortfalls or political battles over 'below-baseline' spending.