Budget Enforcement Act

The Budget Enforcement Act, enacted in 1990, aims to ensure that federal budgetary decisions do not lead to excessive deficits. It established rules that require Congress to offset new spending or tax cuts with equivalent savings or revenue increases, creating a form of fiscal discipline. The Act introduced "firewalls" between mandatory spending (like Social Security) and discretionary spending (like defense), allowing stricter control over expenditures. Overall, it seeks to promote responsible budgeting and fiscal health by holding lawmakers accountable for their budgetary choices.