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This bill would require federal agencies to take a fresh look at their spending every six years and build a “zero-based budget” for the next year and the four years after that. Instead of just starting from last year’s budget, agencies would have to review what they do, what it costs, what other options exist, and decide which programs matter most. The bill also asks most agencies to suggest programs that Congress could cut or shrink so that discretionary spending would go down by at least 2 percent from the previous year. The Department of Defense and the National Nuclear Security Administration would not have to make those cut recommendations.
- Agencies would send these budgets to the Office of Management and Budget and to the House and Senate budget committees.
- The zero-based budget would cover the next fiscal year plus the following four years.
- The required budget review would force agencies to explain current goals, costs, and possible alternatives for carrying out programs.
- Most agencies would also need to recommend spending cuts or reductions equal to at least 2 percent of the prior year’s discretionary funding.
Official Summaries
This bill requires federal agencies to submit zero-based budgets to the Office of Management and Budget and the congressional budget committees. Under the bill, a zero-based budget is a systematic budget analysis in which managers (1) examine current objectives, operations, and costs; (2) consider alternative ways of carrying out programs or activities; and (3) rank different programs or activities by order of importance.
The bill also requires federal agencies to submit recommendations to reduce spending by at least 2% from the previous year's levels. The Department of Defense and the National Nuclear Security Administration are exempt from this requirement.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 181 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 181
To require agencies submit zero-based budgets.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 22, 2025
Mr. Risch (for himself, Mr. Crapo, Mr. Ricketts, Mr. Cruz, Mr. Sheehy,
Mr. Scott of Florida, and Ms. Lummis) introduced the following bill;
which was read twice and referred to the Committee on Homeland Security
and Governmental Affairs
_______________________________________________________________________
A BILL
To require agencies submit zero-based budgets.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ZERO-BASED BUDGETS.
(a) Definition.--In this Act:
(1) Agency.--The term ``agency'' has the meaning given the
term in section 551 of title 5, United States Code.
(2) Zero-based budget.--The term ``zero-based budget''
means a systematic budget analysis in support of decision
making in which managers--
(A) examine current objectives, operations, and
costs;
(B) consider alternative ways of carrying out a
program or activity; and
(C) rank different programs or activities by order
of importance to the organization.
(b) Zero-Based Budgets.--Every sixth year, each agency shall submit
to the Director of the Office of Management and Budget and the
Committee on the Budget of the Senate and the Committee on the Budget
of the House of Representatives a zero-based budget for the next fiscal
year and each of the 4 ensuing fiscal years.
(c) Recommendations.--In addition to the zero-based budget required
under subsection (b), each agency, except the Department of Defense and
the National Nuclear Security Administration shall submit
recommendations for which programs Congress should cut or reduce
appropriations in an amount that equals not less than a 2-percent
reduction from the previous year appropriation in discretionary
spending.
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