PolicyBrief
H.R. 208
119th CongressJan 3rd 2025
No Budget, No Pay Act
IN COMMITTEE

The "No Budget, No Pay Act" mandates that if Congress fails to agree on a budget resolution by April 15th, their salaries will be held in escrow until a resolution is reached or the end of the congressional term.

Robert Wittman
R

Robert Wittman

Representative

VA-1

LEGISLATION

Congress Faces Pay Freeze Under 'No Budget, No Pay Act' Starting FY2026

The "No Budget, No Pay Act" aims to light a fire under Congress by holding members' salaries in escrow if they miss the April 15th deadline for agreeing on a budget resolution. This means that if a budget resolution isn't passed on time, members of Congress won't get paid until a resolution is reached, or until the end of that congressional term. This kicks in starting fiscal year 2026 (Section 2).

Paychecks on Hold

This bill directly targets a common frustration: the seemingly endless budget battles in Washington. By holding paychecks, the law aims to incentivize Congress to get its act together and pass a budget on time. The idea is simple – if you don't do your job, you don't get paid. This applies to all members, including Delegates and Resident Commissioners (Section 2).

Real-World Ripple Effects

Imagine a small business owner who relies on government contracts. Budget uncertainty can make it hard to plan, invest, or even hire. This bill tries to create more predictability. For example, a government contractor in Northern Virginia might have more confidence bidding on a project if they know Congress is under pressure to pass a budget on time, reducing the risk of funding delays or shutdowns. Similarly, federal employees in D.C. might feel more secure about their jobs if the annual budget process becomes more reliable.

However, there's also a flip side. While the goal is a smoother budget process, there's a real risk that Congress could rush through a poorly-vetted budget just to get paid. This could lead to bad policy decisions that impact everyone from farmers relying on agricultural subsidies to students dependent on federal loans. It also raises questions about fairness. Members of Congress with substantial personal wealth might not feel the pinch as much as those who rely solely on their congressional salary. This could create an uneven playing field, where only the wealthiest can afford to serve, potentially skewing legislative priorities.

The Bottom Line

The "No Budget, No Pay Act" is a direct response to public frustration with budget gridlock. It tries to force compromise by hitting Congress where it hurts: their wallets. While it might make the budget process more efficient, it also carries the risk of hasty decisions and unequal impacts on members. It's a bit like instituting a strict deadline on a group project – it might get done faster, but the quality could suffer. Whether this approach will lead to better budgets or just faster, potentially flawed ones, remains to be seen. The law also doesn't address other factors that contribute to delays, like fundamental disagreements over policy priorities (Section 2).