Press Releases

This week, U.S. Congressman Ralph Norman (SC-5) co-sponsored two bills in the House of Representatives to help address our national debt, federal spending, and Congress’ inability to pass a budget:

 

The The Budget Process Enhancement Act, introduced by Rep. Andy Biggs (AZ-05) and co-sponsored by Rep. Norman, would accomplish two things:

 

(A) If Congress fails to pass an annual budget, the salaries of every Member would be held in escrow until such time as they fulfilled this obligation.

 

(B) Federal departments and agencies would be required to justify new spending, instead of using automatic increases in their lump sums from Congress for those purposes.

 

 

The second bill co-sponsored by Rep. Norman is titled the Debt Ceiling Alternative Act. It would require the Treasury Secretary to issue “trill” bonds to service our nation’s debt in the event that our debt ceiling is reached. These bonds would be linked to the U.S. Gross Domestic Product (GDP).

 

During an economic downturn, tax revenues often decline sharply while the amount of money needed to cover principal and interest on our nation’s debt does not. As a result, government faces pressure to either raise taxes, incur even more debt, or cut spending at the most inopportune times.

 

Being tied to GDP, trill bonds would reduce bondholder payouts when GDP was lower (e.g. during economic downturns) helping the government service its debt obligations while tax revenues are lower. During times of economic prosperity, investors would benefit with higher dividends as GDP rises.

 

The Debt Ceiling Alternative Act was introduced by Rep. David Schweikert (AZ-05) and co-sponsored by Rep. Norman, Rep. Mark Meadows (NC-11), and Rep. Matt Gaetz (FL-01).

 

 

Media inquires for Rep. Norman can be directed to Austin Livingston at (803) 833-0030.

 

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