US Fiscal Turnarounds: Laying the Foundation for Action
Summary
In 2024, the Committee for a Responsible Federal Budget (CRFB) committed to engage lawmakers, experts, and members of public over the next four years to educate on and lay the foundation for a turn to a sounder fiscal position in the United States. Through a series of annual national conferences and dozens of localized presentations, the CRFB will directly engage thousands of leaders and citizens – educating stakeholders on the looming fiscal crisis facing the country and mobilizing action to generate recommendations and drive critically needed changes in federal fiscal policy over the coming years.
Approach
To address this challenge, the Committee for a Responsible Federal Budget (CRFB) will undertake a series of efforts through 2028 to inform and activate the public on this critical issue with the goal of laying the foundation for a fiscal turnaround deal in the United States.
There are three necessary elements in laying the foundation for a fiscal turnaround deal in the US: 1) substantive ideas that lend themselves to the bipartisan agreement, 2) public education, and 3) political leadership.
The CRFB will:
Host a high-profile conference in 2025 with policymakers and experts on fiscal turnarounds. The global conference will use historic lessons to generate principles and recommendations for approaching current fiscal challenges.
Host a national “Fiscal State of the Nation” (FSON) annually over the next five years. Despite the national debt having become a clear and present danger to our economic and national security, change is possible. The FSON, will center on a presentation by the head of the GAO to Members of Congress and the public. The presentation will focus on facts and a straightforward assessment of potential consequences to paint an unbiased picture of the fiscal trajectory.
The annual FSON will grow to include 25 interactive simulations with the public around the country through 2028, where participants will collaborate to develop compromise deficit reduction plans.
In addition, the CRFB will be conducting extensive social media outreach to its networks and implementing a wide-reaching earned media strategy.
As a well-respected, independent source of objective policy analysis, the CRFB regularly engages policymakers to help develop and analyze proposals to improve the country’s fiscal and economic condition. These efforts have reinforced the Committee’s role as an authoritative voice for fiscal responsibility and an educational. The CRFB is also a trusted budget watchdog that assists journalists across the country.
Action Plan
2025 Q1 – Fiscal State of the Nation | Q3 – Global Conference
1) 5-10 educational presentations around the country on the US Fiscal Turnaround
2) Webinars focused on educating the public about the need for a US Fiscal Turnaround
2026 Q1 – Fiscal State of the Nation | Q3 – Conference
1) 5-10 educational presentations around the country on the US Fiscal Turnaround
2) Webinars focused on educating the public about the need for a US Fiscal Turnarounds
3) 2-5 Additional engagements focused on the midterm election
2027 Q1 – Fiscal State of the Nation | Q3 – Conference
1) 5-10 educational presentations around the country on the US Fiscal Turnaround
2) 4 Webinars focused on educating the public about the need for a US Fiscal Turnarounds
2028 Q1 – Fiscal State of the Nation | Q3 – Conference
1) 5-10 educational presentations around the country on the US Fiscal Turnaround
2) 4 Webinars focused on educating the public about the need for a US Fiscal Turnarounds
3) 5-10 Additional engagements focused on the Presidential election cycle
Background
This year, 2024, marks the 50th anniversary of the Congressional Budget Act, which created the modern-day budget process, and the 30th anniversary of implementing the Deficit Reduction Act of 1993, which led to the historic turnaround from deficits to surpluses in the late 1990s.
Discouragingly, there has been a dangerous deterioration in the United States’ fiscal policy position since. We now face near-record debt levels, interest payments that are the second largest item in the federal budget (eclipsing both defense and Medicare spending for the first time this year) , and major government trust funds rapidly heading toward insolvency. These fiscal challenges stifle economic growth and contribute to growing inequalities in our economic system. And they leave us dangerously unprepared for the next economic emergency.
The debt poses economic risks and has become a national security threat. Interest payments are crowding out other parts of the budget, the debt trajectory compromises our ability to make needed preventative investments in national security, and our dependency on other nations to lend us money creates a dangerous vulnerability as geopolitical tensions rise.
Moreover, excessive debt levels prevent the U.S. from being financially flexible enough to respond appropriately to other pressing challenges, from environmental concerns to the need to update our social contract to strengthening our advantages in AI, synthetic biology, quantum computing, and space.
Despite the need to change course, deep levels of polarization have made it extremely difficult to create an environment where lawmakers are willing to make hard choices and compromise, and there is a lack of political leadership on the issue.
The U.S. needs to implement fiscal reforms, but that will not happen without buy-in from the public, a consensus among experts on workable approaches, and leadership from policymakers.
Progress Update
Partnership Opportunities
While the CRFB has resources committed to this special scope of action, the work’s scale and impact could be increased with additional financial resources. The problem is large, and the solutions are not easy, but with more resources, the committee can expand the foundation and create a larger call to action. This same concept applies to media, as the more earned media acquired, the more the CRFB can educate the public. The media will be integral to the success of the CRFB’s actions., The CRFB is always open to educating other organizations on the importance of fiscal responsibility and the need for US fiscal turnaround and would love to offer analysis, talking points, or staff members as speakers at other organizations.