PAYGO

What is PAYGO?

PAYGO (aka Pay-Go) stands for "Pay As You Go" or the "Pay As You Go" budgeting plan.

Under PAYGO budgeting rules, Congress would not be allowed to increase the deficit or decrease a surplus to pay for new mandatory programs or tax cuts. Congress would be required to pay for the cost of tax cuts or mandatory spending increases only with other cuts or revenue increases.

What's the history behind PAYGO?

Miller first introduced the idea of common-sense PAYGO budgeting in 1982, nearly 27 years ago. On November 16, 1983, Miller introduced a comprehensive PAYGO budget strategy which subsequently was approved by the Budget Committee and then by the House in April 1984.

For more information, check out the following:

Legislation HJ Res 427, introduced 1983
Legislation HR 6962, introduced 1982
Congressional Record - Statement Upon Introduction
Press Release - PAYGO passes Budget Committee
Press Release - PAYGO passes House

In 1990, a Democratically-controlled Congress and President George H.W. Bush enacted a legally binding pay-as-you-go budget plan. President George W. Bush and a Republican controlled Congress allowed the plan to expire in 2002.

What is next for PAYGO?

On Tuesday, June 9th, President Obama announced his support for a return to statuary PAYGO budgeting. President Obama’s proposal will reduce the federal budget deficit and make Washington more fiscally responsible. Miller joined the President at the White House where Mr. Obama announced he was sending to Congress a bill to require the statutory Pay-as-You-Go rules.

“President Obama is not just talking the talk when it comes to being fiscally responsible; he is willing to hold himself and Congress accountable and I fully support his proposal,” said Miller after the announcement. Continue reading Miller's statement...
Summary of the President's Proposal
Statuary PAYGO Text
The President's Announcement

On Wednesday, July 23rd the House approved statuary PAYGO budgeting. “I am proud we approved this legislation today help bring our fiscal house in order and help strengthen our economy,” said Miller, who first proposed PAYGO rules 27 years ago. “Under PAYGO budgeting, if we can’t pay for new tax cuts or entitlement spending, we can’t have them. It is that simple." Read more

Summary of PAYGO Legislation passed by the House
FAQ on PAYGO Legislation passed by the House

budget economic recovery paygo

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