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Money & budgets

pay-as-you-go

Budget rules requiring new mandatory spending or tax cuts to be offset, so they do not add to the deficit. Enforced by automatic cuts if violated.

In full

Statutory PAYGO keeps a running scorecard; if it shows a net cost at the end of a session, an automatic sequestration of certain mandatory programs is triggered, though Congress has frequently waived it. Each chamber also has its own internal PAYGO rules, enforced by points of order that can be set aside.

Also written as: PAYGO

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Written from Congressional Budget Office, Budget Topics

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A plain-language explanation for civic education, not legal advice. When in doubt, the official source named above controls.