The Fiscal Responsibility Act of 2023, signed into law on June 3, 2023, suspends the federal debt ceiling until January 2025. The legislation also includes a number of spending cuts. It is estimated to reduce federal budget deficits by about $1.5 trillion over the 2023-2033 period relative to the May 2023 baseline projections, according to the Congressional Budget Office.
Some significant provisions in the legislation are summarized below.
Debt ceiling suspended
The federal debt ceiling is suspended through January 1, 2025. On January 2, 2025, the debt limit would be increased by the amount of obligations incurred up to that point.
Spending caps
Statutory caps are established on some discretionary spending for 2024 and 2025, and other limits will now apply for discretionary spending from 2026 through 2029. Discretionary funding generally means budget authority provided in legislation.
Rescission of certain funds
Certain funds provided in previous legislation have been rescinded (and either will not be spent or are allocated elsewhere), including the following:
- Some of the funds provided to the IRS by the Inflation Reduction Act of 2022 for enforcement and modernization of its technology
- Certain unspent pandemic-related funds provided by six laws between 2020 and 2022
Administrative pay-as-you-go
The executive branch is now required to follow administrative pay-as-you-go procedures before finalizing certain administrative actions. Under those procedures, discretionary administrative actions that would increase direct spending by more than a certain threshold would be required to include additional proposed actions to fully offset the increase in direct spending.
Termination of student loan payment moratorium
The current suspension of payments, interest accrual, and collections on defaulted loans in the student loan program is terminated 60 days after June 30, 2023.
Work requirements for social programs modified
Work requirements for the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) are modified. Work requirements for SNAP are expanded to include able-bodied adults ages 50 to 54 who do not live with dependent children, and exemptions are now provided for people experiencing homelessness, veterans, and people ages 18 to 24 who were in foster care when they turned 18. Certain program requirements for states are also modified.
IMPORTANT DISCLOSURES: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bogart Wealth, LLC (“Bogart Wealth”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from Bogart Wealth. Please remember to contact Bogart Wealth, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Bogart Wealth is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the Bogart Wealth’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request. This material was prepared by Broadridge Investor Communication Solutions, Inc.
Fiscal Responsibility Act of 2023
The Fiscal Responsibility Act of 2023, signed into law on June 3, 2023, suspends the federal debt ceiling until January 2025. The legislation also includes a number of spending cuts. It is estimated to reduce federal budget deficits by about $1.5 trillion over the 2023-2033 period relative to the May 2023 baseline projections, according to the Congressional Budget Office.
Some significant provisions in the legislation are summarized below.
Debt ceiling suspended
The federal debt ceiling is suspended through January 1, 2025. On January 2, 2025, the debt limit would be increased by the amount of obligations incurred up to that point.
Spending caps
Statutory caps are established on some discretionary spending for 2024 and 2025, and other limits will now apply for discretionary spending from 2026 through 2029. Discretionary funding generally means budget authority provided in legislation.
Rescission of certain funds
Certain funds provided in previous legislation have been rescinded (and either will not be spent or are allocated elsewhere), including the following:
Administrative pay-as-you-go
The executive branch is now required to follow administrative pay-as-you-go procedures before finalizing certain administrative actions. Under those procedures, discretionary administrative actions that would increase direct spending by more than a certain threshold would be required to include additional proposed actions to fully offset the increase in direct spending.
Termination of student loan payment moratorium
The current suspension of payments, interest accrual, and collections on defaulted loans in the student loan program is terminated 60 days after June 30, 2023.
Work requirements for social programs modified
Work requirements for the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) are modified. Work requirements for SNAP are expanded to include able-bodied adults ages 50 to 54 who do not live with dependent children, and exemptions are now provided for people experiencing homelessness, veterans, and people ages 18 to 24 who were in foster care when they turned 18. Certain program requirements for states are also modified.
IMPORTANT DISCLOSURES: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bogart Wealth, LLC (“Bogart Wealth”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from Bogart Wealth. Please remember to contact Bogart Wealth, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Bogart Wealth is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the Bogart Wealth’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request. This material was prepared by Broadridge Investor Communication Solutions, Inc.
Please Note: Bogart Wealth does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Bogart Wealth’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please Remember: If you are a Bogart Wealth client, please contact Bogart Wealth, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.
Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
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