Number: RL33850
Title: The House's "Pay-As-You-Go" (PAYGO) Rule in the 110th Congress: A Brief Overview
Authors: Robert Keith, Government and Finance Division 
Abstract: On January 5, 2007, the House of Representatives adopted H.Res. 6, a measure setting forth its rules for the 110th Congress. Section 405 of the measure added a new rule, known as the House's "pay-as-you-go" (PAYGO) rule, to Rule XXI. The new rule was a key element of the House Democratic leadership's legislative agenda for the beginning of the 110th Congress. The House's PAYGO rule requires that legislation affecting direct spending or revenues must not increase the deficit (or reduce the surplus) over a six-year period as well as an 11-year period. While a PAYGO rule is new in the House, the Senate has had such a rule since 1993. The Senate has modified its PAYGO rule several times over the years, and efforts are expected to be made in 2007 to make its application more stringent. At present, there are notable differences between the House and Senate PAYGO rules. In addition, efforts may be made to renew the statutory PAYGO requirement that affected legislation enacted during calendar year 1991 through the end of FY2002. This report provides an overview of the House's PAYGO rule, including a legislative history and a discussion of procedures under the rule.
Pages: 8
Date: January 31, 2007