This bill requires the Office of Management and Budget (OMB) to establish spending limits for certain direct spending programs that (1) are enacted or reauthorized after the enactment of this bill, and (2) do not have a specific level of authorized spending expressed as a dollar amount.
The spending limits must be equal to (1) 120% of the cost of the program for defense, health, income security, or veterans benefits and services programs; and (2) 110% of the cost for other programs. The bill excludes Medicare and Social Security from the spending limits.
OMB must maintain a publicly available scorecard that displays the spending level for any program that is subject to the limits. OMB and the President must submit specified reports to Congress comparing current spending to the limits.
The bill prohibits obligations for programs that have reached the applicable spending limit. Agencies implementing programs listed on OMB's scorecard must ensure that any contract, offer of benefits, or other material provided to program participants specifies that the program is subject to a spending limit that may impact future availability of funds to pay benefits.
Source last updated: Oct 15, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Read the proposal in plain language
AI-generated · Source-checked by AI · Oct 27, 2026
Based on the full Introduced in House · 2026-09-28 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
What it would do
The proposed Spending Safeguard Act would cap spending for certain federal programs enacted or renewed after it becomes law, based on their estimated six-year costs. If a covered program reached its cap during those six years, it would have to stop making new commitments to spend money 30 days after the federal budget director’s determination. Agencies would warn participants that future benefit funding could be affected. Medicare and Social Security would be excluded.
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This Act may be cited as the Spending Safeguard Act.
means any Federal program funded by direct spending that— (i) is enacted or reauthorized after the date of enactment of this Act; and (ii) does not have, in statute, a specific level (expressed as a dollar amount) of authorization of appropriations; and (B) does not include Medicare (budget function 570) or Social Security (budget function 650).
If, during any of such six years, the Director determines using the reports submitted under subsection (b)(2) that such a direct spending program has reached the applicable spending safeguard limitation— (A) effective 30 days after such determination, no funds may be obligated to carry out such program
includes information specifying that the program is subject to a spending safeguard limitation that may impact future availability of funds to pay benefits.
Coverage would require three conditions: a federal program must receive “direct spending,” be enacted or reauthorized after this bill becomes law, and lack a statutory authorization of appropriations stated as a specific dollar amount. The bill incorporates another law’s definition of direct spending rather than reproducing it.
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the term direct spending has the meaning given such term in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)(8))
means any Federal program funded by direct spending that— (i) is enacted or reauthorized after the date of enactment of this Act; and (ii) does not have, in statute, a specific level (expressed as a dollar amount) of authorization of appropriations
The director of the Office of Management and Budget would have to establish each covered program’s cap within 90 days after the program is enacted or reauthorized.
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The Director of the Office of Management and Budget shall establish a spending limitation (in this Act referred to as a spending safeguard limitation) with respect to any direct spending program not later than 90 days after any such program is enacted or reauthorized (as the case may be).
The cap would be 120% of estimated six-year costs for covered programs in the defense, health, income security, and veterans benefits and services budget categories. Other covered programs would have a cap of 110%. The director would calculate costs using the applicable scorecards or estimate under the Statutory Pay-As-You-Go Act of 2010.
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(A) with respect to any such program within budget function 050 (Defense), 550 (Health), 600 (Income Security), or 700 (Veterans Benefits and Services), 120 percent of the cost of the program; and (B) with respect to any such program within any other budget function, 110 percent of the cost of the program.
the cost of the program shall be the estimated six-year cost of the program, as determined by the Director using the scorecards or estimate (as the case may be) applicable to the program under section 4 of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933).
The budget director would maintain a public scorecard—a spending tracking record—for covered programs. Treasury would report total spending to the director within seven days after each month ends, beginning with months after the program’s first full operational month.
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The Director shall maintain and make publicly available a spending safeguard limitation scorecard displaying the spending level for any direct spending program that is subject to a spending safeguard limitation pursuant to this Act.
Not later than 7 days after the end of each month beginning after the first full month in which such a direct spending program is operational, the Secretary of the Treasury shall transmit to the Director a report listing the total amount of spending for any direct spending program listed on the scorecard.
After each six-month period, the budget director would report to the House and Senate Budget Committees on covered programs’ total spending and how it compares with their caps.
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After the end of any six-month period, the Director shall submit a report to the Committees on the Budget of the House of Representatives and the Senate containing the total level of spending for any such direct spending program and the relation between such level and the spending safeguard limitation applicable to such program.
The bill would add a spending-versus-cap report to the President’s annual budget submission requirements. Its mid-session amendment would add a reference to that new report in an existing statutory provision.
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(c) President budget submissions (1) Annual Section 1105(a) of title 31, United States Code, is amended by adding at the end the following: (40) a report on the total level of spending for any direct spending program subject to a spending safeguard limitation pursuant to the Spending Safeguard Act, and the relation between such level and the spending safeguard limitation applicable to such program.
(2) Mid-session Section 1106(a)(1)(C) of such title is amended by striking section 1105(a)(8) and (9)(B) and (C) and inserting section 1105(a)(8), (9)(B) and (C), and (40).
During the six years used to estimate a program’s cost, a determination that it will reach its cap within six months would trigger a warning report. The director would use Treasury’s spending reports and notify the House and Senate Budget Committees and committees responsible for the program within 15 days of that determination.
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If, during any of the six years used to determine the cost of a direct spending program pursuant to subsection (a)(3), the Director determines, using the reports submitted under subsection (b)(2), that a direct spending program listed on the scorecard established under subsection (b) will reach the applicable spending safeguard limitation within six months, the Director shall transmit, not later than 15 days after the date of such determination, a report to the Committees on the Budget of the House of Representatives and the Senate and the committees that have jurisdiction over the program.
If the director determines during those six years that a covered program has reached its cap, the program could make no new obligations—commitments to spend money—starting 30 days later. The director would notify the Budget Committees and committees responsible for the program on the day of the determination.
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If, during any of such six years, the Director determines using the reports submitted under subsection (b)(2) that such a direct spending program has reached the applicable spending safeguard limitation— (A) effective 30 days after such determination, no funds may be obligated to carry out such program; and (B) on the date of such determination, the Director shall submit a report to the Committees on the Budget of the House of Representatives and the Senate and the committees that have jurisdiction over the program that such an obligation limitation has been imposed.
Agencies administering covered programs would have to include a warning in contracts, benefit offers, and other materials given to participants. The warning would explain that the cap may affect future availability of money to pay benefits.
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Any Federal agency implementing a direct spending program listed on the scorecard established under subsection (b) shall ensure that any contract, offer of benefits, or other material provided to the program participants includes information specifying that the program is subject to a spending safeguard limitation that may impact future availability of funds to pay benefits.
The supplied official-actions snapshot, updated October 15, 2026, records introduction in the House and referral to the House Committee on the Budget on September 28, 2026.
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Source snapshot updated 2026-10-15T14:58:14Z.
2026-09-28: Referred to the House Committee on the Budget.
2026-09-28: Introduced in House
Reviewed version: Introduced in House · 2026-09-28. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion does not cover other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion does not establish the absence of earmarks in other versions or accompanying materials.
Other targeted benefits
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied text contains an express program-specific exemption from the main spending limitation. This classification is not a judgment about its justification.
Medicare and Social Security would receive an express exemption from the bill’s spending caps because they are excluded from its definition of a covered direct spending program. This treats these named programs differently from programs that otherwise meet the coverage conditions.
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the term direct spending program— (A) means any Federal program funded by direct spending that— (i) is enacted or reauthorized after the date of enactment of this Act; and (ii) does not have, in statute, a specific level (expressed as a dollar amount) of authorization of appropriations; and (B) does not include Medicare (budget function 570) or Social Security (budget function 650).
This analysis concerns the complete supplied introduced text. The dated actions snapshot does not establish subsequent legislative action or enactment; the provisions are described as proposals.
The bundle does not reproduce the statutory definition of direct spending, the referenced cost-estimation rules, or the existing budget-submission provisions. It therefore does not establish the complete set of affected programs or all details of those existing requirements.
The text limits the cap-breach determinations to the six years used in the cost estimate, but does not expressly state when an imposed prohibition on new obligations ends or how it can be lifted.
No program-specific estimates or implementation evidence are supplied, so the bundle does not establish which programs would reach their caps or how participants’ benefits would change.
No earmark disclosures, committee reports, conference materials, or amendment attachment history are supplied. Findings are limited to the introduced text.
Full text preserved for this analysis. Legislative record snapshot: Oct 15, 2026. How PlainBill uses AI