Feingold introduces aggresive deficit-reduction bill

Sen. Russ Feingold (D-Wis.) on Tuesday debuted a series of aggressive spending controls that he anticipates will reduce the federal deficit by $500 billion over the next 10 years.

His bill -- the Control Spending Now Act -- is comprised of about 40 other deficit-reduction efforts previously introduced by congressional Democrats and Republicans. Among other changes, it would return unspent bank rescue money to the Treasury, revive the president's ability to strike unnecessary spending from bills that reach his desk, severely curtail Congress' earmark authority and bring pay-as-you-go to the Senate.

“A consistent message I hear from Wisconsinites – regardless of party – is the need to reduce wasteful spending," Feingold said in a statement Tuesday. "With our nation facing record deficits, Americans are rightly concerned that their children and grandchildren will be forced to shoulder this burden.  That is why I am committed to attacking the deficit from all sides.”

Feingold's latest effort to rein in federal spending arrives on the heels of the Treasury Department's official estimate that last year's deficit exceeded $1.4 trillion -- its highest ever. As the federal government continues to pay out stimulus dollars -- and Congress inches closer to healthcare and climate change reform -- many lawmakers safely expect next fiscal year to incur a deficit as well.

The Wisconsin senator's act would attempt to patch some of those budget holes using a series of aggressive spending controls, some of which Congress has previously rejected or signaled a disinterest in considering. Perhaps foremost among them is his proposed end to the Troubled Asset Relief Program (TARP), which Feingold expects would save $244.5 billion. Many Republican lawmakers have expressed interest in ending the TARP, but Democrats seem unlikely to consider it -- and Treasury Secretary Tim Geithner seems poised to extend the program, as Congress permitted him to do when it passed the law last year.

Feingold's overhaul would also re-introduce a bill he authored with Rep. Paul Ryan (R-Wis.) to restore the president's line-item veto power -- an ability the Supreme Court stripped from President Bill Clinton years ago. Ryan, however, maintains his proposal is constitutional, and Feingold expects it would save the government billions.

The senator's earmark reform provision would permit senators to raise points of order and instantly kill pork spending unless 60 senators voted to permit it. Another part of the bill would restore PAYGO -- essentially preventing the chamber from further incurring deficit spending.

All told, Feingold expects his 40 measures to save more than $500 billion over 10 years -- that is, assuming every component passes, a reality even Feingold admitted in Tuesday's statement would be difficult.

“While I don’t expect this comprehensive package to pass all at once, Congress must get the message that it needs to reform its spending habits,” Feingold said.  “The message from taxpayers is clear – we must cut programs that do nothing but drain taxpayer dollars and institute reforms to prevent wasteful spending in the future.”

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