PROPOSED / DRAFT — FEDERAL SPENDING & NATIONAL DEBT
POSITION
The federal government cannot borrow indefinitely without consequences. Fiscal responsibility requires honest budgeting, disciplined priorities, measurable results, and protection of legitimate constitutional responsibilities.
WHY THIS MATTERS
Persistent deficits increase interest costs, reduce the government's ability to respond to emergencies, shift today’s obligations to future generations, and make essential programs harder to sustain. Taxpayers should be able to see what government spends, why it spends it, what results were promised, and whether those results occurred.
BUDGET TRANSPARENCY
Every major federal spending proposal should publicly identify:
Its constitutional authority
Its total short-term and long-term cost
Its funding source
Its expected effect on deficits and debt
Its measurable objective
The agency or official responsible for implementation
Its review date
The consequences if it fails
Long-term obligations and interest costs should not be hidden through temporary accounting, emergency labels, or unrealistic assumptions.
PROGRAM REVIEW & PERFORMANCE
Federal programs should receive periodic independent review addressing purpose, cost, results, duplication, improper payments, and whether the program remains necessary.
MPA supports:
Program audits
Public performance measures
Spending reviews
Long-term cost estimates
Consolidation of duplicative programs
Reform or termination of obsolete or consistently ineffective programs
Corrective deadlines for material audit findings
A program should not continue indefinitely merely because it existed in the previous budget. Reviews should distinguish a program that needs improvement from one that no longer serves a legitimate purpose.
GOVERNMENT PROCUREMENT
Taxpayer money deserves the same care people apply to their own money.
MPA supports:
Competitive bidding
Transparent contracts
Contractor performance records
Beneficial-ownership disclosure
Conflict-of-interest and recusal rules
Aggressive anti-kickback enforcement
Recovery and clawback of funds obtained through fraud
Suspension or debarment of contractors responsible for serious misconduct
Appropriate civil or criminal referral for government-contract fraud
Sole-source and emergency contracts should identify why competition was impracticable, who approved the exception, the amount involved, and when the exception expires.
IMPROPER PAYMENTS, WASTE & FRAUD
Agencies should identify programs with high improper-payment risk, publish error rates and recovery totals, correct recurring control failures, and report whether corrective actions worked.
Fraud prevention should use lawful data verification, independent auditing, evidence preservation, due process, and privacy safeguards. Administrative mistakes should be corrected without treating every error as intentional fraud.
EMERGENCY SPENDING
Emergency appropriations should state the specific emergency, authorized uses, spending limit, responsible agency, reporting schedule, and expiration date. Extensions should require renewed legislative approval. When the emergency ends, an independent after-action review should account for the money spent, contracts issued, results achieved, and funds remaining.
DEBT REDUCTION & LONG-TERM BUDGETING
MPA supports a credible multiyear path toward balanced budgeting, long-term solvency analysis, and debt reduction during strong economic periods.
Temporary deficits may be necessary during a severe recession, war, declared disaster, or comparable national emergency. Such spending should have a defined purpose, transparent cost, oversight, and an exit plan. An emergency should not become a permanent justification for unrelated spending.
SAFEGUARDS
Fiscal responsibility does not mean pretending government has no legitimate responsibilities. Budget reform should not rely on indiscriminate across-the-board cuts that ignore effectiveness, legal obligations, national security, or consequences for people who reasonably relied on existing commitments.
BINDING SPENDING, RESERVE & DEBT RULES
Twenty-Four-Year Goal and Mandatory Thirty-Year Debt Elimination
The federal government shall budget toward eliminating gross federal debt within 24 fiscal years after implementation. Gross federal debt must reach zero no later than the end of the thirtieth fiscal year. The law must establish an audited maximum debt balance for every fiscal year. All federal entities, trust funds, agencies, government corporations, guarantees that become payable, and off-budget obligations count. Congress may pay the debt faster but may not move an obligation outside the definition.
During repayment, audited recurring revenue remaining after lawful spending and required Savings and Stabilization Fund and Strict Emergency Fund deposits is paid to debt principal. The temporary 10% debt surtax ends automatically when certified gross federal debt reaches zero.
Federal Spending Ceilings
Fiscal years 1 through 10: no more than $8 trillion in ordinary annual federal outlays.
Fiscal years 11 through 20: no more than $9.5 trillion in ordinary annual federal outlays.
Fiscal years 21 through 30: no more than $11 trillion in ordinary annual federal outlays.
These amounts are maximums, not spending targets or appropriations. Permitted spending for each fiscal year is the lower of the applicable statutory ceiling or the amount consistent with the certified mandatory 30-year debt milestone. Government shall budget toward the 24-year target whenever audited revenue, verified savings, and lawful obligations permit.
The ceiling includes mandatory and discretionary spending, net interest, agencies, federal corporations, emergency appropriations, refundable credits used as spending, loan subsidies, leases, public-private financing, and every arrangement creating a federal cost. Transfers between federal accounts and repayment of debt principal are excluded only to prevent double counting.
One-Time Retirement Transition
The first fiscal year may include one separate appropriation, currently estimated at approximately $1.03 trillion, solely to fund approved one-time $10,000 retirement deposits for people age 24 or younger when the transition begins. The appropriation is outside the $8 trillion ordinary first-year ceiling, expires after the first year, cannot be renewed, and cannot be transferred or reclassified for another purpose. Future newborn deposits remain inside the ordinary spending ceiling.
Savings, Stabilization, Emergency Funds & Future Debt
The former general reserve is replaced by a Savings and Stabilization Fund and a separate Strict Emergency Fund. While gross federal debt remains, annual deposits equal 3.5% and 1.5% of audited net recurring federal revenue. After certified gross federal debt reaches zero, the rates become 7% and 3%. The funds have separate purposes, 67% and 33% GDP-based maximum balances, permanent carryforward, actual net earnings, public audits, anti-pledging rules, a 30/30/30 process for savings withdrawals, and a 10/10/10 process for emergencies. The complete federal and state rules appear in Public Savings, Stabilization & Emergency Funds.
After the existing debt reaches zero, ordinary federal operations may not be debt-financed. Total new gross federal debt may never exceed 19% of the trailing three-year average of official United States Net Domestic Product, as published by the Bureau of Economic Analysis. The 19% ceiling is a maximum, not a target or an independent borrowing authorization. Borrowing remains limited to durable capital projects, a declared emergency, or refinancing that reduces total cost. Each borrowing authorization must identify the qualifying purpose, maximum amount, repayment source, final repayment date, full cost, and automatic spending controls that activate if the schedule is missed. A debt term may not exceed the useful life of a financed asset. Refinancing may not be used to extend debt indefinitely. Savings and emergency funds may not be pledged or borrowed against. If an economic contraction or later official revision causes previously lawful outstanding debt to exceed the ceiling without new borrowing, no additional debt may be issued and the government must return below the ceiling within three fiscal years without defaulting on existing obligations.
MAQSTEM & American Development and Modernization Fund Inside the Ceiling
MAQSTEM may receive up to $300 billion annually and the American Development and Modernization Fund may receive up to $700 billion annually. Both are maximum envelopes inside the ordinary federal spending ceiling. Existing qualifying federal research, infrastructure, housing, regional-development, and industrial-development spending must be consolidated and counted once inside the appropriate envelope. This includes direct appropriations, grants, subsidies, cooperative agreements, loans and loan subsidies, loan guarantees, tax expenditures, insurance support, purchase commitments, public-private financing, and other federal financial assistance when the primary purpose qualifies under MAQSTEM or the American Development and Modernization Fund. A qualifying cost may not remain outside the envelope merely because it is administered by another agency or delivered through a state, locality, Tribal Nation, territory, university, nonprofit, cooperative, farmer, rancher, or business. Costs that do not qualify remain in their applicable operating or benefit category and may not be relabeled merely to fit an envelope. Authorization does not require expenditure. American Development and Modernization Fund money is deposited into the approved national and jurisdiction accounts and released only through verified project stages.
Initial Thirty-Year-Compliance Planning Allocation
The existing category planning maxima total approximately $8.12 trillion. They do not override the $8 trillion statutory ceiling. At least $120 billion must remain unspent in the first fiscal year, and the unified pre-enactment fiscal score must identify the exact category adjustments without counting unverified savings, unsupported revenue, or double-counted program consolidation. The category amounts remain planning maxima rather than commands to spend unnecessarily.
Category | Initial planning ceiling
Social Security and legacy retirement: Initial planning ceiling: $1.70 trillion.
Medicare: Initial planning ceiling: $1.10 trillion.
Medicaid and CHIP: Initial planning ceiling: $750 billion.
National defense: Initial planning ceiling: $1.00 trillion.
Net interest: Initial planning ceiling: $1.05 trillion.
Veterans: Initial planning ceiling: $450 billion.
Other benefits and obligations: Initial planning ceiling: $550 billion.
Civilian agencies and ordinary operations: Initial planning ceiling: $520 billion.
MAQSTEM: Initial planning ceiling: $300 billion.
American Development and Modernization: Initial planning ceiling: $700 billion.
Total: Initial planning ceiling: $8.12 trillion.
MAQSTEM and American Development and Modernization absorb and consolidate qualifying existing federal research, infrastructure, industrial, agricultural, housing, subsidy, and development spending. They do not add $1 trillion on top of existing qualifying programs. A cost is counted once.
Annual Debt Milestones
Before implementation, the unified independent fiscal score must replace planning estimates with audited opening debt, current recurring revenue, current lawful obligations, required fund deposits, and the enacted tax structure. It must publish both a 24-year target path and a binding 30-year maximum path. The following table illustrates the presently modeled paths, in trillions of dollars, using approximately $39.43 trillion of opening gross debt, $7.86 trillion of first-year recurring revenue, 2.5% annual nominal revenue growth, required deposits equal to 5% of revenue while debt remains, and the one-time retirement transition.
Year | 24-year target | 30-year maximum
1: 24-year target: $40.25T; 30-year maximum: $40.99T.
2: 24-year target: $39.85T; 30-year maximum: $41.34T.
3: 24-year target: $39.26T; 30-year maximum: $41.50T.
4: 24-year target: $38.47T; 30-year maximum: $41.46T.
5: 24-year target: $37.48T; 30-year maximum: $41.21T.
6: 24-year target: $36.29T; 30-year maximum: $40.77T.
7: 24-year target: $34.88T; 30-year maximum: $40.11T.
8: 24-year target: $33.26T; 30-year maximum: $39.23T.
9: 24-year target: $31.41T; 30-year maximum: $38.13T.
10: 24-year target: $29.34T; 30-year maximum: $36.81T.
11: 24-year target: $28.54T; 30-year maximum: $36.75T.
12: 24-year target: $27.49T; 30-year maximum: $36.45T.
13: 24-year target: $26.21T; 30-year maximum: $35.91T.
14: 24-year target: $24.67T; 30-year maximum: $35.12T.
15: 24-year target: $22.87T; 30-year maximum: $34.07T.
16: 24-year target: $20.81T; 30-year maximum: $32.76T.
17: 24-year target: $18.47T; 30-year maximum: $31.17T.
18: 24-year target: $15.87T; 30-year maximum: $29.31T.
19: 24-year target: $12.98T; 30-year maximum: $27.16T.
20: 24-year target: $9.79T; 30-year maximum: $24.73T.
21: 24-year target: $7.81T; 30-year maximum: $23.49T.
22: 24-year target: $5.52T; 30-year maximum: $21.95T.
23: 24-year target: $2.92T; 30-year maximum: $20.10T.
24: 24-year target: $0; 30-year maximum: $17.92T.
25: 24-year target: $0; 30-year maximum: $15.42T.
26: 24-year target: $0; 30-year maximum: $12.57T.
27: 24-year target: $0; 30-year maximum: $9.38T.
28: 24-year target: $0; 30-year maximum: $5.84T.
29: 24-year target: $0; 30-year maximum: $1.93T.
30: 24-year target: $0; 30-year maximum: $0.
Under these planning assumptions, spending at the full revised ceilings reaches zero debt during year 30. Reaching the 24-year goal requires average ordinary spending approximately $747 billion below the revised annual ceilings through year 24. The published annual dollar milestones must be updated before enactment and after each fiscal-year audit without weakening the 30-year deadline. A revised projection cannot retroactively excuse an already missed legal ceiling. Revenue from penalties, tariffs, fraud recovery, improper-payment recovery, or projected program savings is counted only after collection or verified avoidance of the expense.
Automatic Fiscal Correction
If the enacted budget would exceed the total ceiling, a category ceiling, or the binding debt milestone, unsupported and uncommitted appropriations remain unspent until compliance is restored. Correction begins with uncommitted discretionary amounts and unsupported portions of MAQSTEM and American Development envelopes before reducing an earned benefit already being paid. No agency may create an obligation exceeding its category ceiling. Congress must prospectively amend a benefit law if future promises cannot lawfully fit inside the total plan.
Permanent Budget Rules After Year Thirty
After the debt-elimination period, Congress may enact a new budget and new category allocations. The temporary staged dollar ceilings expire, but the governing principles and permanent fiscal rules remain:
Federal operating spending may not exceed audited recurring federal revenue.
The enacted and completed operating budget must be balanced.
Ordinary operations may not be financed through borrowing.
Required Savings and Stabilization Fund and Strict Emergency Fund deposits occur before discretionary spending.
New gross federal debt may not exceed 19% of the trailing three-year average of official United States Net Domestic Product.
New borrowing remains limited to qualifying durable capital projects, declared emergencies, or refinancing that reduces total cost.
Money dedicated to one program or fund may not be borrowed, swept, transferred, pledged, loaned, or reclassified for another purpose.
Every program remains subject to public accounting, independent audit, measurable performance review, and a category ceiling.
Audited excess revenue is returned proportionately to eligible taxpayers within 90 calendar days under the Taxes policy.
A revenue shortfall requires reduction of uncommitted spending, use of an authorized emergency mechanism where applicable, or prospective lawful revision. It does not authorize routine deficit financing.
The 19% future-debt ceiling is a maximum, not a target or an independent authorization to borrow. Every authorization must identify the qualifying purpose, maximum amount, repayment source, full cost, and final repayment date. Debt may not outlive the useful life of a financed asset. Savings and emergency funds may not be pledged or borrowed against.
Core MPA standard: Pay current bills, prove every purchase, protect dedicated funds, build real public savings, eliminate existing debt with a 24-year goal and a binding 30-year deadline, and permanently prohibit routine deficit government under another name.
Implementation and Public Reporting
The plan takes effect on January 1 following enactment, without a phase-in. The first unified public score must be completed before that date. During the first three fiscal years, the government must publish quarterly results showing actual collections, outlays, fund deposits, debt payments, missed assumptions, and corrective action. Annual public reporting continues thereafter. If a debt milestone is missed, unsupported and uncommitted spending is frozen first. Benefits already being paid remain protected.
Core MPA standard: A debt promise must be proved by a complete calculation. Count every cost once, count only revenue that legally exists, never pretend an estimate is cash already collected, and correct the budget early enough to pursue the 24-year goal and meet the binding 30-year deadline.
Government Shall Not Overpay
Federal purchasing, military procurement, Medicare, Medicaid, grants, construction, and every other public program generally may not pay more than the lowest verified net price available to an ordinary private purchaser for an equivalent product or service. A higher price requires a public written finding identifying a genuine difference in quantity, specification, delivery, security, liability, warranty, location, or service requirement.
A vendor may not evade comparison through a different product number, bundle, affiliate, rebate, financing arrangement, reduced warranty, undisclosed discount, or artificial customization. Unique defense or public-safety items without a real commercial comparison require competitive bidding when possible, audited cost data, an independent estimate, and a reasonable profit limit.
State and Local Balanced Budgets
Every state, county, city, village, school district, authority, and other public body must propose, enact, and complete a balanced operating budget using accrual accounting. Pension, retiree-health, lease, authority, special-district, and deferred obligations must be fully disclosed. Operating expenses may not be moved into another entity or later year and financed through debt.
Borrowing is limited to durable capital projects, a declared emergency, or refinancing that reduces total cost. The term may not exceed the useful life of the asset. The maximum outstanding debt for each covered public body is 19% of its trailing three-year average of audited recurring revenue. Every issue requires a stated purpose, public repayment schedule, full cost disclosure, and independent annual audit.
Enforcement Without Accounting Games
No official may evade a ceiling or debt milestone by delaying bills, accelerating collections, borrowing from a pension, using an authority or nonprofit, selling and leasing back an asset, relabeling spending as an emergency, or creating an unfunded guarantee. Intentional concealment triggers removal from financial authority, personal civil penalties, restitution where a loss occurred, and criminal referral when fraud, false certification, obstruction, or another defined crime is proven.
Core MPA standard: Pay current bills, prove every purchase, fund public savings and real emergencies, eliminate existing debt with a 24-year goal and binding 30-year deadline, and prevent future officials from recreating routine deficit government through another name.
WHAT WE WILL MEASURE
Public reporting should track:
Annual deficits and national debt
Federal interest costs
Improper-payment rates and funds recovered
Procurement competition and documented savings
Audit findings corrected or left unresolved
Programs consolidated, reformed, or ended
Whether funded programs met their stated objectives
Related policies: Taxes; Cost of Living & Economic Security; Social Security, Senior Security & Retirement; Public Savings, Stabilization &
Emergency Funds; Infrastructure Modernization & Disaster Response; Public Money, Audits & Proof of Spending; Changes in Government.
Status: Proposed / Draft — not yet formally adopted.
Originally published: September 20, 2026.
Last updated: October 18, 2026.
Version: Draft 0.10.
POST-YEAR-THIRTY SAVINGS AND SUSTAINABLE DEBT-PAYOFF CERTIFICATION
This section controls any earlier general language concerning post-debt fund deposits or termination of the temporary debt surtax.
Through fiscal year 30, the existing debt-based deposit schedule remains in force: 3.5% of audited net recurring revenue for the Savings and Stabilization Fund and 1.5% for the Strict Emergency Fund while debt remains, increasing to 7% and 3% if certified gross federal debt reaches zero before the end of fiscal year 30. Beginning in fiscal year 31, the permanent combined deposit is 5% of audited net recurring revenue, allocated 3.5% to the Savings and Stabilization Fund and 1.5% to the Strict Emergency Fund.
The temporary 10% debt surtax does not end solely because gross federal debt reaches zero at one point in time. It ends automatically only after an independent public certification confirms that gross federal debt is zero, all lawful obligations and required fund deposits are current, and audited recurring revenue is projected to cover ordinary spending and the required fund deposits for each of the next three fiscal years without ordinary operating debt. Delayed payments, shifted obligations, off-budget entities, emergency labels, or reclassification may not be used to manufacture compliance. Once these conditions are satisfied, the surtax ends automatically and may not be renewed or renamed without the lawfully required approval.