Should Congressional Paychecks Get Cut When Both Chambers Can't Agree On A Federal Budget? (H.R. 325)

What is H.R. 325?

(Updated September 27, 2016)

This bill was enacted on February 4, 2013

As the Act's name suggests — No Budget, No Pay Act — this bill withholds Congressional paychecks until both chambers can agree on a federal budget. Passed in February 2013, this bill also suspended the public debt limit through May 18, 2013 at a little over $16 trillion.

When a budget agreement  for the 2014 fiscal year wasn't reached by April 15, the payroll administrator for each chamber was required to put your Senator and House Representative's checks into an escrow account. After this deadline, the money wouldn't be released until a member’s chamber agreed to a budget the last day of the 113th Congress.

H.R. 325 also gave the Secretary of the Treasury the authority to increase the public debt limit given that the additional increase was within $100 billion of the existing limit. If the Secretary decided not to increase the budget, it would happen automatically on May 19, 2013 — limited to:

• The face value of obligations issued, and the face value of obligations whose principal and interest are guaranteed by the federal government. This excludes guaranteed obligations held by the Treasury.

• The face value of obligations that are outstanding on the date that this bill is enacted.

Argument in favor

If Congress can’t come to an agreement on one of their most essential responsibilities — funding the government — they don’t deserve to be paid on time.

Argument opposed

This bill is coercive and could force Congressional members to vote for legislation they don't fully agree with. Not every member in Congress is a millionaire.

Impact

Members of Congress, payroll administrators for Congress, the Secretary of State, the President.

Cost of H.R. 325

The CBO estimates that implementing this bill would not have a significant impact on the federal budget.

Additional Info

In-Depth:

Congress’ inability to come to an agreement on a budget has highlighted the disconnect between those in Washington D.C. and those outside the Beltway. For families and business owners, establishing a budget is a routine procedure, yet between April 29, 2009 and March 24, 2013 the Senate did not pass a budget.

The willingness of members of Congress to delay their own paychecks has also emphasized the divide. For a member of Congress the minimum salary is currently $174,000, and the median income for Americans is just over $43,000. In 2011, the median net worth for a member of Congress was $966,000, while the typical household net worth for Americans as a whole is under $67,000.

This is all to say that when you're making over $170,000 a year, missing a few paychecks probably won't be the end of the world for you.