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The No Budget, No Pay Act of 2013 (; ) is a law passed during the
113th United States Congress The 113th United States Congress was a meeting of the legislative branch of the United States federal government, from January 3, 2013, to January 3, 2015, during the fifth and sixth years of Presidency of Barack Obama, Barack Obama's presiden ...
. The Act temporarily suspended the US debt ceiling from February 4 to May 18, 2013. It also placed temporary restrictions on Congressional salaries.


Background

An earlier version of the No Budget, No Pay Act (unrelated to the debt ceiling) was originally introduced in early 2012 by
Jim Cooper James Hayes Shofner Cooper (born June 19, 1954) is an American lawyer, businessman, professor, and politician who served as the U.S. representative for (based in Nashville and containing parts of Davidson, Cheatham, and Dickson Counties) from ...
, a Democratic congressman from
Tennessee Tennessee ( , ), officially the State of Tennessee, is a landlocked state in the Southeastern region of the United States. Tennessee is the 36th-largest by area and the 15th-most populous of the 50 states. It is bordered by Kentucky to th ...
. It stipulated that congressmen in the
United States Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
would not get paid unless they passed a budget by October 1, 2012.Nocera, Kate
"'Fix Congress Now' rallies around Cooper's 'No Budget, No Pay Act'"
''
Politico ''Politico'' (stylized in all caps), known originally as ''The Politico'', is an American, German-owned political journalism newspaper company based in Arlington County, Virginia, that covers politics and policy in the United States and intern ...
'', 16 May 2012. Retrieved on 8 November 2012.
Weigant, Chris
"No Budget, No Pay Act"
''The Huffington Post'', 14 March 2012. Retrieved on 9 November 2012.
Cunningham, Paige W
"2-party Group Puts Pay on Line in Get Budget Passed in House"
''The Washington Times'', 16 May 2012. Retrieved on 9 November 2012.
The bill received limited bipartisan support. However, some members of Congress on both sides of the aisle opposed the bill, stating it would have likely violated the
27th Amendment to the United States Constitution The Twenty-seventh Amendment (Amendment XXVII, also known as the Congressional Compensation Act of 1789) to the United States Constitution prohibits any law that increases or decreases the salary of members of Congress from taking effect until ...
, which states "No law, varying the compensation for the services of the Senators and Representatives, shall take effect, until an election of Representatives shall have intervened." It was considered dead until mid-January 2013 when Republican lawmakers came up with the idea of combining sections of this bill with a debt ceiling increase; Democratic lawmakers eventually accepted the compromise.


Provisions/Elements of the bill

''This summary is based largely on the summary provided by the
Congressional Research Service The Congressional Research Service (CRS) is a public policy research institute of the United States Congress. Operating within the Library of Congress, it works primarily and directly for members of Congress and their committees and staff on a c ...
, a
public domain The public domain (PD) consists of all the creative work A creative work is a manifestation of creative effort including fine artwork (sculpture, paintings, drawing, sketching, performance art), dance, writing (literature), filmmaking, ...
source.'' :The No Budget, No Pay Act of 2013, signed into law on February 4, 2013, suspended the public debt ceiling in the United States until May 18, 2013. The public
debt limit A debt limit or debt ceiling is a legislative mechanism restricting the total amount that a country can borrow or how much debt it can be permitted to take on. Several countries have debt limitation restrictions. Description A debt limit is a l ...
at the start of the suspension period was $16.394 trillion. :The Act made a special rule relating to debt issued during the suspension period. It revised the discretionary increase in the public debt limit by the
United States Secretary of the Treasury The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
, under current law, subject to a congressional resolution of disapproval, upon submission to
United States Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
of required presidential certifications that the debt subject to limit is within $100 billion of the limit and further borrowing is required to meet existing commitments. :The Act substituted for this discretionary increase, effective May 19, 2013, an automatic increase in the public debt limit, but only to the extent that: (1) the face amount of debt issued and the face amount of debt whose principal and interest are guaranteed by the
federal government A federation (also known as a federal state) is a political entity characterized by a union of partially self-governing provinces, states, or other regions under a central federal government (federalism). In a federation, the self-governin ...
(except guaranteed obligations held by the Secretary of the Treasury) outstanding on May 19, 2013, exceeds (2) the face amount of such debt at the start of the suspension period. :The Act prohibits a debt from being taken into account unless its issuance was necessary to fund a commitment incurred by the federal government that required payment before May 19, 2013. :Finally, the Act requires the appropriate payroll administrator of each house of Congress to deposit in an escrow account all mandatory payments for compensation of Members of Congress serving in that house if by April 15, 2013, that house has not agreed to a concurrent budget resolution for FY2014. It then requires release to those Members of such payments after April 16, 2013, only upon the earlier of: (1) the day on which that house agrees to a concurrent budget resolution for FY2014, or (2) the last day of the 113th Congress. ''This summary was written by the bill's sponsor, Rep.
Dave Camp David Lee Camp (born July 9, 1953) is a former American politician who served as a member of the United States House of Representatives from 1991 to 2015. Camp represented since 1993, and previously served one term representing . A member of the ...
.'' :This legislation directs members of the House and Senate to adopt a budget resolution by April 15, 2013. If either body does not, members of that body will have their pay withheld until they pass a budget. It’s simple: no budget, no pay. The American people understand that they don’t get paid if they don’t do their job, and neither should Members of Congress. :In addition, to ensure the complete and timely payment of the obligations of the U.S. Government, this legislation allows Treasury to issue debt between the date of enactment and May 18, 2013. However, Treasury may only issue enough debt necessary to pay bills coming due before May 18. I want to be perfectly clear on this point: this bill does not allow Treasury to run up an unlimited amount of debt between now and May 18. The debt authorized under this bill must be tied to bills coming due during that time frame. Further, on May 19, a new debt limit is automatically established. The Senate passed the FY2014 budget on March 23, 2013, 23 days before the deadline set by the No Budget, No Pay Act of 2013. This was the first Senate budget passage since a FY2010 budget passed on April 29, 2009. (No Senate budget was passed for FY2011, FY2012, or FY2013.)


Congressional Budget Office report

H.R. 325 would temporarily suspend the debt limit by the Treasury until May 18, 2013. On the following day, the current debt limit of $16.394 trillion would be raised by the amount of borrowing above that level during the period in which the limitation was suspended. The Act also provided an incentive for action on a concurrent resolution on the budget. If a version of such a resolution has not been passed by a House of the Congress by April 15, 2013, the salaries of Members of that chamber would be put in an escrow account. The escrow account for a given House would remain in place until a concurrent resolution on the budget was passed for fiscal year 2014 by that chamber, or until the last day of the 113th Congress, whichever was earlier.


Procedural history


House

The Act was introduced into the
House of Representatives House of Representatives is the name of legislative bodies in many countries and sub-national entitles. In many countries, the House of Representatives is the lower house of a bicameral legislature, with the corresponding upper house often c ...
by Rep. Dave Camp (R-MI) on January 21, 2013. The bill was referred to the
Committee on House Administration The United States House Committee on House Administration deals with the general administration matters of the United States House of Representatives. History The Committee on House Administration was created by the Legislative Reorganization A ...
and the
House Committee on Ways and Means The Committee on Ways and Means is the chief tax-writing committee of the United States House of Representatives. The committee has jurisdiction over all taxation, tariffs, and other revenue-raising measures, as well as a number of other program ...
. The House voted to pass the bill on January 23, 2013, by 285-144 i
Roll Call Vote #30


Senate

The Act was received in the
Senate A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the el ...
on January 24, 2013. It passed the Senate on January 31, 2013 by a vote of 64-34 i
Recorded Vote 11


Presidential signature

President
Barack Obama Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, Obama was the first African-American president of the U ...
signed the Act into law on February 4, 2013.


Debate and discussion


Constitutionality

The act implicates constitutional concerns, because the Twenty-seventh Amendment provides that Congress may not "vary" the compensation of senators and representatives until there has been an intervening election.Rachel Weiner
Is "No Budget No Pay" constitutional?
''Washington Post''
Bruce Moyer
The Rise of Paycheck Politics
''Washington Watch'' (Federal Bar Association), April 2013.
The act would withhold the pay of legislators only temporarily (pending passage of a budget), rather than permanently; commentators differ on whether this is permissible under the Twenty-seventh Amendment. The
Supreme Court A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
has never addressed the issue.


See also

*
List of bills in the 113th United States Congress The bills of the 113th United States Congress list includes proposed federal laws that were introduced in the 113th United States Congress. This Congress lasted from January 3, 2013, to January 3, 2015. The United States Congress is the bicamer ...
*
National debt of the United States The national debt of the United States is the total national debt owed by the federal government of the United States to Treasury security holders. The national debt at any point in time is the face value of the then-outstanding Treasury sec ...
* 2013 United States debt-ceiling debate *
United States budget process The United States budget process is the framework used by Congress and the President of the United States to formulate and create the United States federal budget. The process was established by the Budget and Accounting Act of 1921, the Congress ...


Notes/References


External links


Library of Congress - Thomas H.R. 325

beta.congress.gov H.R. 325

GovTrack.us H.R. 325

OpenCongress.org H.R. 325



House Republicans' report on H.R. 325

Congressional Budget Office's report on H.R. 325

Analysis from Bi-Partisan Policy
{{US government sources Acts of the 113th United States Congress National debt of the United States