No Pay for Congress During Default or Shutdown Act
- Bill Number
- H.R. 1973
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Congress
- Status
- Introduced
- Latest Action
- 2025-03-10: Referred to the Committee on House Administration, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-07-01T16:48:06Z
AI-Generated Summary
Purpose of the Legislation
This bill, titled the "No Pay for Congress During Default or Shutdown Act," seeks to promote fiscal responsibility by automatically reducing the annual pay of Members of Congress when the U.S. public debt limit is reached (potentially leading to a default) or during a government shutdown. It aims to create a financial incentive for lawmakers to avoid these events by tying their compensation directly to such occurrences.
Key Provisions
- Short Title (Section 1): Establishes the official name of the act.
- Pay Reduction for Reaching Public Debt Limit (Section 2):
- If the debt limit is reached on any day in a year (defined as the federal government being unable to make payments due to hitting the borrowing cap under 31 U.S.C. § 3101), each Member's annual pay is reduced by one full day's pay for each 24-hour period the limit is reached.
- Applies starting after the November 2026 general election.
- For the 119th Congress (current session), withheld pay is held in an escrow account (a temporary holding fund) and released at the end of the Congress to comply with constitutional rules on pay changes.
- Excludes days after the 2026 election during the 119th Congress.
- Pay Reduction for Government Shutdowns (Section 3):
- If a shutdown occurs (defined as a lapse in funding for any federal agency due to failure to pass appropriations bills or a continuing resolution), pay is reduced similarly—one day's pay per 24-hour period of shutdown.
- Same effective date (post-2026 election) and escrow rules for the 119th Congress as in Section 2.
- Role of the Secretary of the Treasury (Section 4): Requires the Treasury Secretary to assist congressional payroll administrators in implementing the pay reductions.
- Definitions (Section 5):
- "Member of Congress" includes Senators, Representatives, and certain congressional officers paid under existing law (2 U.S.C. § 4501).
- "Payroll administrator" refers to the Chief Administrative Officer of the House or the Secretary of the Senate (or their designees).
Significant Changes to Existing Law
- Introduces a new mechanism for automatic, proportional pay deductions for Members of Congress based on debt limit breaches or shutdowns, which is not currently in place. Existing law sets a fixed annual salary for Members (around $174,000) without such penalties.
- Adds an escrow process specifically for the current (119th) Congress to ensure withheld funds are eventually paid out, preventing mid-term pay cuts that could violate the 27th Amendment (which prohibits changes to congressional pay during a session).
- No changes to debt limit or shutdown laws themselves, but links congressional compensation to them for the first time.
Potential Impacts
- On Government Agencies: Could encourage Congress to pass funding bills and raise the debt limit more promptly, reducing the frequency of shutdowns that disrupt agency operations and furlough thousands of federal workers.
- On Citizens: May lead to greater government stability, minimizing economic uncertainty from shutdowns (e.g., delayed payments, closed services) or default risks (e.g., higher borrowing costs). Taxpayers might indirectly benefit from perceived accountability, though pay reductions do not directly affect federal budgets.
- On International Relations: Minimal direct impact, but avoiding defaults could preserve U.S. creditworthiness globally, potentially stabilizing international financial markets and U.S. dollar confidence.
- No explicit effects on private citizens' finances, but repeated shutdowns have historically caused broader economic ripple effects like reduced consumer spending.
Main Stakeholders Affected
- Members of Congress: Primary group, as their pay (and potentially that of delegates/residents commissioners) would be directly reduced, creating personal financial stakes in avoiding crises.
- Congressional Staff: Payroll administrators (e.g., House Chief Administrative Officer, Senate Secretary) must handle withholding and escrow processes.
- U.S. Department of the Treasury: Provides support for implementation, including notifications about debt limit status.
- Federal Employees and Agencies: Indirectly affected, as fewer shutdowns could mean more consistent operations.
- Taxpayers and Voters: Benefit from potential incentives for fiscal discipline but have no direct role.
Notable Legal, Constitutional, or Political Implications
- Constitutional: Explicitly designed to comply with the 27th Amendment by using escrow for the current Congress, ensuring no "variation" in pay during an elected term. This avoids challenges that doomed similar past proposals (e.g., bills attempting immediate pay cuts).
- Legal: Provides clear definitions for "reaching the debt limit" (inability to pay obligations) and "government shutdown" (funding lapse), reducing ambiguity in enforcement. Relies on existing pay statutes (2 U.S.C. § 4501) without altering them broadly.
- Political: Could increase pressure on lawmakers across parties to negotiate on budgets and debt ceilings, fostering bipartisanship but risking perceptions of it as a "gotcha" measure that penalizes gridlock without addressing root causes like partisan divides. As a House-introduced bill (by Reps. Vindman and Fitzpatrick, indicating bipartisan sponsorship), it may face debate over equity, since shutdowns/defaults often stem from executive-congressional disputes. If enacted, it might set a precedent for tying elected officials' pay to performance metrics.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (14)
Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Bresnahan, Robert [R-PA-8], Rep. Pappas, Chris [D-NH-1], Rep. Whitesides, George [D-CA-27], Rep. Goodlander, Maggie [D-NH-2], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Kean, Thomas H. [R-NJ-7], Rep. Smucker, Lloyd [R-PA-11], Rep. Elfreth, Sarah [D-MD-3], Rep. Subramanyam, Suhas [D-VA-10], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Tokuda, Jill N. [D-HI-2], Rep. Landsman, Greg [D-OH-1]
Recent Actions
- 2025-03-10: Referred to the Committee on House Administration, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-10: Referred to the Committee on House Administration, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-10: Introduced in House
- 2025-03-10: Introduced in House
Bill Versions
- No Pay for Congress During Default or Shutdown Act — issued 2025-03-10 — PDF (8 pages)