Section 1 Short title
This Act may be cited as the “Debt Limit Reform and Congressional Pay for Performance Act of 2014”.
Debt Limit Reform and Congressional Pay for Performance Act of 2014
A BILL
To suspend the application of the limit on the Nation’s debt for a 10-year period, to reduce the pay of Members of Congress for failing to meet fiscal sustainability targets, and for other purposes.
Sec. 2 Suspension of debt limit
Suspension— Section 3101(b) of title 31, United States Code, shall not apply for the period beginning on February 8, 2014, and ending on April 15, 2024.
Special rule relating to obligations issued during suspension period— Effective on April 16, 2024, the limitation in section 3101(b) of title 31, United States Code, is increased to the extent that—
the face amount of obligations issued under chapter 31 of such title and the face amount of obligations whose principal and interest are guaranteed by the United States Government (except guaranteed obligations held by the Secretary of the Treasury) outstanding on April 16, 2024, exceeds
the face amount of such obligations outstanding on the date of enactment of this Act.
Limitation— An obligation shall not be taken into account under subsection (b)(1) unless the issuance of such obligation was necessary to fund a commitment incurred by the Federal Government that required payment before April 16, 2024.
Sec. 3 Determination of fiscal sustainability targets
Determinations— On December 31 of each of calendar years 2015 through 2023, the Director of the Office of Management and Budget shall determine—
the sum of the face amount of obligations issued under chapter 31 of title 31, United States Code, and the face amount of obligations whose principal and interest are guaranteed by the United States Government (except guaranteed obligations held by the Secretary of the Treasury), outstanding at any time, with respect to the most recent fiscal year which ended before the calendar year;
the amount which is equal to the applicable percentage (as described in subsection (b)) of the Gross Domestic Product determined by the Secretary of Commerce with respect to such fiscal year; and
if the amount determined under paragraph (1) with respect to a fiscal year exceeds the amount determined under paragraph (2) with respect to such fiscal year, the percentage by which the amount determined under paragraph (1) exceeds the amount determined under paragraph (2).
Applicable Percentages Described— For purposes of subsection (a)(2), the applicable percentage with respect to a fiscal year is as follows:
For fiscal year 2015, 74.1 percent.
For fiscal year 2016, 70.4 percent.
For fiscal year 2017, 66.9 percent.
For fiscal year 2018, 64.4 percent.
For fiscal year 2019, 62.4 percent.
For fiscal year 2020, 60.5 percent.
For fiscal year 2021, 58.7 percent.
For fiscal year 2022, 56.9 percent.
For fiscal year 2023, 54.8 percent.
Sec. 4 Reduction in pay of Members of Congress for failure to meet fiscal sustainability targets
Reduction— Section 601(a)(2) of the Legislative Reorganization Act of 1946 (2 U.S.C. 4501(2)) is amended by adding at the end the following:
“(C) If the Director of the Office of Management and Budget determines that the amount determined under paragraph (1) of section 3(a) of the Debt Limit Reform and Congressional Pay for Performance Act of 2014 with respect to a fiscal year exceeds the amount determined under paragraph (2) of section 3(a) of such Act with respect to such fiscal year—
“(i) each annual rate of pay referred to in paragraph (1) shall be reduced by the percentage determined by the Director of the Office of Management and Budget under section 3(a)(3) of the Debt Limit Reform and Congressional Pay for Performance Act of 2014 for all pay periods occurring during the next calendar year which begins after that fiscal year; and
“(ii) no adjustment may be made under subparagraph (A) in any such rate of pay during that next calendar year.”
Technical Amendment— Section 601(a)(2)(A) of such Act is amended by striking “Subject to subparagraph (B),” and inserting “Subject to subparagraphs (B) and (C),”.
Effective Date— The amendments made by this section shall apply with respect to fiscal year 2015 and each succeeding fiscal year.