2.3: Budget Triggers

Design and apply budget "triggers" as a method of enforcement.

Other Information:

Budget "triggers" are another option that has been proposed by some budget experts to constrain the growth of mandatory spending, which currently makes up nearly two-thirds of our budget. The vast majority of mandatory spending goes to three of the government's largest programs: Social Security, Medicare, and Medicaid. These programs are particularly vulnerable to growth as a result of increased longevity, population shifts, and the rapid rise in health care costs. Since mandatory spending, unlike discretionary spending, does not require annual review or depend on new funding each year, a trigger would encourage lawmakers to take notice when mandatory programs are projected to cost more than anticipated by Congress and the President in their most recent budget decisions. Whether the trigger prompted a "hard" action (legislation that would reduce spending automatically unless Congress and the President step in to stop it), or a "soft" action (the publication of a report warning that the budget limit is expected to be breached), it would require lawmakers to review and reconsider the status of mandatory spending programs. A few experts argue that revenue triggers would also be possible. Revenue triggers would be designed to encourage reconsideration of tax changes, but because it is more difficult to gather information about how much revenue was lost as a result of a tax cut, they would be much harder to design.

Stakeholder(s):

• The President


• Congress

Indicator(s):

Indicator:1

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