Budget Reform Act of 2025

Bill Number: S. 2090
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Economics and Public Finance
Status: Introduced
Latest Action: 2025-06-17: Read twice and referred to the Committee on the Budget.
Last Updated: 2026-05-05T12:30:00Z

AI-Generated Summary

Purpose of the Legislation

The Budget Reform Act of 2025 aims to enhance the transparency, efficiency, and discipline of the federal budget process. It shifts the U.S. government from annual to biennial (two-year) budgeting cycles, introduces zero-based budgeting (requiring justification of all expenses as if starting from scratch each time), increases accountability for budget submissions, and strengthens congressional oversight tools.

Key Provisions

Title I: Congressional Budget Office (CBO) Reforms
Requires the CBO Director to publicly release fiscal models, data preparation routines, and detailed computations used in cost estimates for legislation (effective 6 months after enactment).
For sensitive data that cannot be disclosed (due to legal restrictions), provides summaries like descriptive statistics and contact information for access holders.
Ensures estimates can be replicated by independent parties, promoting transparency without compromising confidentiality.

Title II: Zero-Based Budgeting
Mandates the President to submit budget materials justifying every departmental and agency activity from a zero baseline (no automatic carryover of prior funding), including objectives, legal basis, alternative funding levels (at least two below current levels), priorities, and efficiency measures.
Excludes Social Security, Medicare, and Medicaid from these requirements.
Starts as an interim measure upon enactment, transitioning to full biennial zero-based budgeting by January 1, 2027 (applicable from fiscal year 2028 onward).
The Office of Management and Budget (OMB) must issue guidelines to implement this.

Title III: Biennial Budget Timetable Reforms
Subtitle A: Biennial Budgeting and Appropriations
Revises the congressional budget timetable to a two-year cycle starting in odd-numbered years (e.g., budgets for fiscal years 2028-2029 submitted by October 1, 2027, or February 1 in certain presidential transition years).
Amends the Congressional Budget and Impoundment Control Act of 1974 and Title 31 of the U.S. Code to replace "fiscal year" references with "biennium" (two consecutive fiscal years starting October 1 of odd-numbered years).
Requires biennial concurrent budget resolutions, appropriations bills titled for two years, and multiyear authorizations (at least two years unless a program ends sooner).
Prohibits considering one-year-only appropriations or authorizations in odd-numbered years until the full biennial budget process is complete.
Updates government planning (e.g., performance plans, managerial accountability) to biennial cycles, effective March 1, 2026.
Subtitle B: Compliance
Imposes penalties for late presidential budget submissions: bans federal funds for official travel by political appointees (e.g., Executive Schedule positions) and the President during delays, with limited exceptions (e.g., return trips or national security events).
Requires submission of the National Security Strategy and President's budget before the President can address a joint session of Congress (with national security exceptions).
If Congress misses biennial deadlines, bans federal funds for travel by members of the affected chamber.
Subtitle C: Effective Date
Applies to budgets, resolutions, and appropriations starting fiscal year 2028 (January 1, 2027).

Title IV: Senate Rules Reforms
Raises the Senate vote threshold to waive or appeal points of order under budget rules (e.g., against extraneous matters or deficit increases) from three-fifths to two-thirds of members.
Introduces a "surgical strike" point of order: Allows senators to strike specific provisions in bills that improperly address budget matters outside the Budget Committee's jurisdiction, without derailing the entire measure.

Title V: Other Matters
Revises baseline projections (used for budgeting forecasts) under the Balanced Budget and Emergency Deficit Control Act of 1985 to assume continuation of current discretionary spending levels without inflation adjustments or automatic increases.
Eliminates certain prior adjustments (e.g., for program integrity funding), effective January 1, 2027, for fiscal year 2028 biennium.

Significant Changes to Existing Law

Shift to Biennial Cycle: Transforms the annual budget process (established in 1974) into a two-year process, reducing frequency of full budget debates while extending planning horizons; updates deadlines, resolutions, and appropriations to cover bienniums.
Zero-Based Budgeting Introduction: Adds a new requirement under 31 U.S.C. § 1105 for comprehensive justification of all activities, replacing incremental budgeting (which builds on prior years).
CBO Transparency: Amends 2 U.S.C. § 653 to mandate public release of models and replicable data, a major expansion from current practices where methodologies are often opaque.
Compliance Penalties: New restrictions on travel and joint session addresses tied to timely submissions, amending 31 U.S.C. § 1105 and the Congressional Budget Act; previously, delays had no direct financial penalties.
Higher Senate Thresholds: Increases waiver votes to two-thirds (from three-fifths in many cases), amending the Congressional Budget Act and related resolutions, making it harder to bypass budget rules.
Baseline Adjustments: Removes inflation and other automatic escalators from baselines (2 U.S.C. § 907), potentially lowering projected spending compared to current law.

Potential Impacts

Government Agencies: Agencies must prepare more detailed justifications and biennial plans, potentially leading to reduced or reallocated funding through zero-based reviews; longer cycles could improve long-term planning but increase upfront workload.
Citizens: May result in more efficient use of taxpayer dollars by curbing automatic spending growth and enhancing oversight, but could delay or alter funding for programs if justifications fail; excludes major entitlement programs, minimizing direct effects on Social Security, Medicare, and Medicaid beneficiaries.
International Relations: Limited direct impact, though stable biennial budgets could improve U.S. fiscal predictability for allies and creditors; national security strategy ties might indirectly affect foreign policy timing.

Main Stakeholders Affected

Congress: Budget and Appropriations Committees gain stronger enforcement tools but face tighter deadlines and prohibitions on early consideration of bills.
Executive Branch: President, OMB, and agencies must submit more rigorous, timely budgets; political appointees and the President face travel restrictions for delays.
Congressional Budget Office (CBO): Required to increase transparency, potentially straining resources but building public trust in estimates.
Taxpayers and Advocacy Groups: Benefit from greater accountability and replicable data, enabling better scrutiny of spending.
Federal Programs and Recipients: Agencies and beneficiaries of discretionary spending (e.g., defense, education) may see funding scrutinized more intensely.

Notable Legal, Constitutional, or Political Implications

Legal: Amends foundational laws like the Congressional Budget Act of 1974 and Title 31 U.S. Code, creating enforceable points of order and penalties; defines "biennium" consistently to avoid disputes.
Constitutional: Reinforces Congress's power of the purse (Article I, Section 9) by limiting executive flexibility (e.g., travel bans) and raising Senate thresholds, but could raise separation-of-powers questions if penalties are seen as overly punitive.
Political: Increases partisan hurdles for budget waivers and compliance, potentially leading to more gridlock or fiscal restraint; biennial cycles might reduce election-year disruptions but empower minorities to block extraneous provisions via surgical strikes.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Marshall, Roger [R-KS]

Recent Actions

2025-06-17: Read twice and referred to the Committee on the Budget.
2025-06-17: Introduced in Senate

Bill Versions

Budget Reform Act of 2025 — issued 2025-06-17 — PDF (48 pages)