A bill to require agencies submit zero-based budgets.
- Sponsor
- Sen. Risch, James E. [R-ID]
- Committees
- Homeland Security and Governmental Affairs Committee (primary)
- Last action
- Jan 22, 2025
Bottom line
The bill aims to enhance fiscal accountability and reduce federal spending by overhauling the traditional budgeting process for most federal agencies through periodic zero-based budgeting and mandatory cut recommendations.
What it actually does
This bill mandates that all federal agencies, with the exception of the Department of Defense and the National Nuclear Security Administration, submit a zero-based budget every six years. This process requires agencies to justify all expenditures from scratch, rather than incrementally adjusting previous budgets. Additionally, these agencies must recommend specific programs for Congress to cut or reduce appropriations by at least 2% from the previous year's discretionary spending.
Proponents argue
Proponents argue this bill will significantly increase transparency and efficiency in federal spending by forcing agencies to rigorously justify every dollar. They contend it will identify and eliminate wasteful programs, ensuring taxpayer money is allocated based on current needs and effectiveness, leading to substantial long-term savings and more accountable government operations.
Opponents contend
Opponents might argue that implementing zero-based budgeting every six years could impose an excessive administrative burden on agencies, potentially diverting critical resources from their core missions. They may also contend that a blanket 2% cut recommendation could lead to arbitrary reductions in essential programs without sufficient programmatic review, potentially harming vital government services.
The bill text is exceptionally short and clear, making it very accessible for any reader to understand its core provisions and evaluate its implications.
Section 1(a)(2)
Definition of 'Zero-Based Budget'
This section establishes the precise meaning of a 'zero-based budget' for the purposes of this Act. It defines it as a systematic budget analysis where agency managers must examine their current objectives, operations, and costs, consider alternative methods for carrying out programs, and then rank these programs by their importance to the organization. This definition sets the foundation for the new budgeting approach.
Supporters argue
Supporters argue that a clear and rigorous definition of zero-based budgeting is crucial for ensuring consistent application and achieving the intended fiscal discipline across the federal government.
Critics contend
Critics might contend that while the definition is clear, the process it describes is inherently resource-intensive and could strain agency personnel and budgets, particularly for smaller agencies.
Tradeoffs
This provision balances the desire for a standardized, thorough budget review process with the potential administrative burden it places on federal agencies.
Section 1(b)
Mandatory Zero-Based Budget Submissions
This provision requires every federal agency to submit a comprehensive zero-based budget every six years. These budgets must cover the next fiscal year and the four subsequent fiscal years, providing a five-year financial outlook. The submissions are to be sent to the Director of the Office of Management and Budget (OMB) and the Budget Committees of both the Senate and the House of Representatives, ensuring broad oversight.
Section 1(c)
Mandatory Recommendations for Spending Cuts
This section requires most federal agencies, specifically excluding the Department of Defense (DoD) and the National Nuclear Security Administration (NNSA), to submit recommendations to Congress. These recommendations must identify programs where appropriations could be cut or reduced by at least 2% from the previous year's discretionary spending levels. The goal is to proactively identify areas for federal spending reduction across a significant portion of the government.