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Congressional Research Service
Version 00 · Introduced in Senate · Jul 7, 2016
One Percent Spending Reduction Act of 2016
This bill amends the Balanced Budget and Emergency Deficit Control Act of 1985 to establish and enforce new spending caps.
The bill establishes an outlay cap (less net interest payments) for FY2017 of $3.645 trillion, less 1%. For each year from FY2018-FY2021, the bill reduces the outlay cap by 1% of the previous year's outlay cap.
Showing the opening paragraphs of the official summary.
For FY2022 and subsequent years, total outlays may not exceed 18% of the gross domestic product (GDP) for that year as estimated by the Office of Management and Budget (OMB). Beginning in FY2023, total projected outlays may not be less than the total projected outlays for the preceding year.
The OMB must enforce the spending caps using a sequestration to eliminate any excess spending through automatic cuts. The bill eliminates most of the existing exemptions from sequestration, with the exception of interest payments on the debt.
If the OMB projects a sequestration, the congressional budget committees may report a resolution directing congressional committees to change existing law to achieve the spending reductions necessary to meet the outlay limits.
The bill amends the Congressional Budget Act of 1974 to establish procedures for Congress to enforce the outlay caps established by this bill.
People & committees
Sen. Enzi, Michael B. [R-WY] · R–WY
Legislative record
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Read twice and referred to the Committee on the Budget.
Introduced in Senate
Primary sources
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Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.
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