Spending Cap Could Hurt Federal Action on Climate

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


The debt ceiling continues to be the focus of deliberations in Washington, as Vice-President Joe Biden leads negotiations with congressional leaders to hammer out a deal. A number of Republicans in Congress say such a grand bargain must include an overall spending cap—which means no new federal spending in any fiscal year unless it’s offset with cuts elsewhere in the budget.

A number of liberal groups have expressed concerns about what this means for social programs (see: here, here, and here). But it would also likely handicap federal efforts to deal with climate change using market-based measures, as the Center on Budget and Policy Priorities points out:

The cap that these proposals would establish very likely would make it impossible to enact any market-based strategy to reduce the carbon pollution that drives global warming. That’s because all such strategies — from carbon taxes to carbon “allowance” systems — are “scored” under Congressional Budget Office (CBO) budget rules as both raising federal revenues and spending them. Comprehensive climate change legislation would raise revenues by putting a price on greenhouse gas pollution and use those revenues for such purposes as protecting consumers and energy-intensive firms and workers and investing in energy efficiency and clean energy technology.

Because the global spending cap proposals would impose a cap on total federal spending in any fiscal year (as a percent of Gross Domestic Product, or GDP), they would bar adoption of such strategies unless they contained large offsetting cuts in other government spending. This would be true even for climate protection proposals that raised sufficient revenue to fully cover their spending — or even went further and reduced the deficit. In other words, even climate protection legislation that reduced the deficit would run afoul of a global spending cap.

It’s an academic point right now, really, since a federal climate plan, market-based or otherwise, isn’t going anywhere for the time being. But it’s worth noting that such a cap would have wide-ranging implications for federal policy.

AN IMPORTANT UPDATE

We’re falling behind our online fundraising goals and we can’t sustain coming up short on donations month after month. Perhaps you’ve heard? It is impossibly hard in the news business right now, with layoffs intensifying and fancy new startups and funding going kaput.

The crisis facing journalism and democracy isn’t going away anytime soon. And neither is Mother Jones, our readers, or our unique way of doing in-depth reporting that exists to bring about change.

Which is exactly why, despite the challenges we face, we just took a big gulp and joined forces with The Center for Investigative Reporting, a team of ace journalists who create the amazing podcast and public radio show Reveal.

If you can part with even just a few bucks, please help us pick up the pace of donations. We simply can’t afford to keep falling behind on our fundraising targets month after month.

Editor-in-Chief Clara Jeffery said it well to our team recently, and that team 100 percent includes readers like you who make it all possible: “This is a year to prove that we can pull off this merger, grow our audiences and impact, attract more funding and keep growing. More broadly, it’s a year when the very future of both journalism and democracy is on the line. We have to go for every important story, every reader/listener/viewer, and leave it all on the field. I’m very proud of all the hard work that’s gotten us to this moment, and confident that we can meet it.”

Let’s do this. If you can right now, please support Mother Jones and investigative journalism with an urgently needed donation today.

payment methods

AN IMPORTANT UPDATE

We’re falling behind our online fundraising goals and we can’t sustain coming up short on donations month after month. Perhaps you’ve heard? It is impossibly hard in the news business right now, with layoffs intensifying and fancy new startups and funding going kaput.

The crisis facing journalism and democracy isn’t going away anytime soon. And neither is Mother Jones, our readers, or our unique way of doing in-depth reporting that exists to bring about change.

Which is exactly why, despite the challenges we face, we just took a big gulp and joined forces with The Center for Investigative Reporting, a team of ace journalists who create the amazing podcast and public radio show Reveal.

If you can part with even just a few bucks, please help us pick up the pace of donations. We simply can’t afford to keep falling behind on our fundraising targets month after month.

Editor-in-Chief Clara Jeffery said it well to our team recently, and that team 100 percent includes readers like you who make it all possible: “This is a year to prove that we can pull off this merger, grow our audiences and impact, attract more funding and keep growing. More broadly, it’s a year when the very future of both journalism and democracy is on the line. We have to go for every important story, every reader/listener/viewer, and leave it all on the field. I’m very proud of all the hard work that’s gotten us to this moment, and confident that we can meet it.”

Let’s do this. If you can right now, please support Mother Jones and investigative journalism with an urgently needed donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate