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HOUSE PASSES “PAY AS YOU GO” LEGISLATION TO CUT WASTEFUL SPENDING AND REDUCE THE NATIONAL DEFICIT

WASHINGTON– Congressman Henry Cuellar today voted in support of H.R. 2920, the Statutory Pay-As-You-Go Act of 2009, legislation co-sponsored by Congressman Cuellar which creates a plan to enforce fiscal discipline in a time of rising deficits.  Pay-as-you-go legislation, also known as PAYGO, restores fiscally responsible spending measures to Congress by requiring that all new spending is offset by savings.  This deficit-neutral spending plan aims to restore the fiscal health of the 1990’s when PAYGO budget rules helped turn massive deficits into record surpluses.

“Everyday Americans are making tough choices between what they need and what they can afford. They are getting through these tough times by a simple principle: Don’t spend more than what you have,” said Congressman Cuellar. “We should expect Congress to do the same. This plan will help stop irresponsible spending in Washington and restore America’s fiscal health.”

The Statutory PAYGO legislation, which passed the House today by a vote of 265-166, requires Congress to pay for the costs of tax cuts or other increases in entitlement spending with savings elsewhere in the budget. These spending provisions aim to balance the budget and reduce the national deficit. This act is similar to PAYGO legislation enacted in the 1990’s which expired in 2002 when the nation’s surplus was estimated to be $5.6 trillion.

“Today, our nation’s deficit is over $11 trillion and as people across South Texas and the nation try to balance their checkbooks, it’s time Congress follow their lead,” said Congressman Cuellar. “The idea is simple. If you have five dollars, you can spend five dollars, but you can’t spend more than that.”

Last month, Congressman Cuellar met with President Obama at the White House alongside other fiscally conservative members of the Blue Dog Coalition to support the legislation which passed today. Fiscal responsibility is at the forefront of the Blue Dog’s missions and re-instating PAYGO has been a Blue Dog priority since 2002.

“For several years, the federal government was stalled in a pattern of fiscal irresponsibility.  No more. We are making tough decisions on funding priorities. We are tackling the biggest threats to our long-term fiscal stability. And we are restoring greater discipline to how we spend taxpayers’ dollars,” said President Obama. “I thank Speaker Pelosi and Leader Hoyer, Chairman Spratt and Chairman Miller, Representatives Hill, Cooper, Boyd, and Welch, the Blue Dog coalition, and all of the 167 cosponsors of the PAYGO legislation.  We will continue to work together to strengthen fiscal discipline.”

Pending Senate passage and the President’s signature, today’s legislation will apply to new spending measures and will not apply to existing policies that are widely expected to be extended, such as Medicare physician payments.

For a summary of H.R. 2920, Statutory PAYGO legislation, please visit: http://majorityleader.gov/docUploads/PAYGOSummary072009.pdf