Budget Control Act - BCA

Everyone knows the U.S. federal budget is generally out of control with extremely large deficits. But it was particularly bad after the Great Recession, which began in 2008 with revenues plummeting and expenses soaring, and with various stimulus programs being implemented.

With the deficit projected to be a record $1.5 trillion, Congress passed the Budget Control Act of 2011 (BCA). This law created the Joint Select Committee on Deficit Reduction (also known as the “super committee”) that had special, one-time authority to propose a deficit-reduction package.

Unfortunately, this committee with superpowers was never able to come to an agreement on what to cut. The BCA also imposed budget caps for a 10-year period ending in FY 2021. There were separate caps for the defense and nondefense parts of the discretionary budget, but these have been largely ignored. In fact, the entire BCA is often undermined by the actions of Congress. Some want to increase the spending limits, while others think it should be repealed entirely.

The current deficit is now leaving the "billions" to venture into "trillion" territory, with frequent threats of a government shutdown whenever a budget needs to be passed.

Bottom line: We have no money. You may know the feeling.