Posted on Jul 06, 2023 at 12:07 AM
The Fiscal Responsibility Act of 2023 has been discussed in the political and economic spheres. Let's explain what this legislation entails and how it affects US infrastructure.
The White House and House Republican Leadership, after several discussions, agreed to suspend the debt ceiling until January 1, 2025. This move, part of the Fiscal Responsibility Act of 2023, allows the federal government to borrow more money to fund its programs. Previously, the US Treasury had announced a $34.1 trillion debt ceiling and raised concerns about the government's ability to meet obligations beyond a nearing deadline.
The Congressional Budget Office, an impartial body, assessed the legislation. The Fiscal Responsibility Act is expected to cut budget deficits by $1.5 trillion and reduce national debt interest by $188 billion.
Several unspent funds from 2021, totalling $28 billion, are being revoked, affecting transportation budgets and programs. Here are some highlights:
However, it is essential to note that $3 billion in unspent transportation funds is protected from revocation.
The Fiscal Responsibility Act paves the way for streamlining the permit process for infrastructure projects. It adopts several elements from the Builder Act, aiming to speed up environmental assessments and unambiguous language in the legislation. Some key provisions include:
The act also mandates the North American Electric Stability Corporation to assess transmission capacity for grid stability. Should there be a need for greater transmission capacity across regions, the Federal Energy Regulatory Commission will prioritize increasing capacity.
The Fiscal Responsibility Act facilitates energy storage projects by allowing them to receive FAST-41 permits, which aims to streamline the environmental assessment process for covered infrastructure projects.
The Act introduces a Pay-As-You-Go (PAYGO) provision. It requires that any executive action that raises direct spending should have a corresponding plan to offset that increase with decreased spending elsewhere. It gives the Office of Management and Budget Director significant discretion on waivers and protections against court reviews. This provision will expire on December 31, 2024.
The Fiscal Responsibility Act of 2023 is a comprehensive legislation that aims to tackle national debt, streamline infrastructure project approvals, and keep government spending in check. It represents a critical response to the United States' financial and infrastructure challenges.
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