2.1: Spending Caps
Re-impose statutory caps on discretionary spending. Other Information:
Spending caps would put a limit on spending, and are most often associated with discretionary (as opposed to mandatory) spending.
Policy makers set discretionary spending levels each year during the appropriations process to fund many of the most visible
activities and programs of the federal government, including national parks, transportation programs, the Congress and the
White House. Discretionary spending caps were effectively used in the 1990s under both Presidents George H.W. Bush and Bill
Clinton. Many budget experts argue in favor of new statutory caps on discretionary spending to help to ensure that spending
levels are limited. If discretionary spending were to exceed the cap, then an across-the-board cut (or sequestration) would
be made in that spending category. Discretionary spending takes up about one-third of the federal budget, so an enforceable
cap would be an effective tool in stemming growth in spending. Lawmakers could vote to change the caps should new priorities
emerge, emergencies arise, or national conditions change.
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