Fiscal Responsibility and Emergency Flexibility Act

This Act establishes a statutory pay-as-you-go (PAYGO) requirement for all legislation affecting direct spending or revenues, effective for fiscal years 2025 through 2030. Any bill or joint resolution considered by Congress that would increase the deficit over a 5-year or 10-year budget window must include offsetting spending reductions or revenue increases of equal or greater amount. The Congressional Budget Office (CBO) shall determine the budgetary impact of each measure using its most recent baseline. To preserve executive discretion and congressional flexibility, a waiver is provided: the President may declare a national emergency or certify that a measure is essential for the performance of a core governmental function (e.g., national security, disaster relief, public health). Upon such declaration, the PAYGO requirement is suspended for that specific measure for one fiscal year, renewable once. Congress may also override the PAYGO requirement for any measure by a three-fifths vote in each chamber, ensuring a supermajority consensus for deficit-increasing legislation. Enforcement is automatic: if at the end of a session the net deficit increase from all enacted legislation exceeds zero, the Director of the Office of Management and Budget (OMB) shall sequester non-exempt mandatory spending by the amount of the excess, proportionally across all programs not exempted by law. Exemptions include Social Security, veterans' benefits, and interest on the debt. The CBO and OMB shall jointly report to Congress quarterly on compliance. This Act sunsets on September 30, 2030, unless reauthorized. It does not bind future Congresses beyond its term, and any subsequent Congress may amend or repeal it by ordinary legislation.