Budget Enforcement Procedures: Senate's Pay-As-You-Go (PAYGO) Rule

Summary

The Senate’s “pay-as-you-go,” or PAYGO, rule generally prohibits the consideration of direct spending and revenue legislation that is projected to increase (or cause) an on-budget deficit in any one of three time periods: the first year, the first 5 years, and the second 5 years, covered by the most recently adopted budget resolution. Any increase in direct spending or reduction in revenues resulting from such legislation must be offset by an equivalent amount of direct spending cuts, tax increases, or a combination of the two.