Budget Enforcement Act of 1990
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The Budget Enforcement Act of 1990 (Pub.L. 101-508, title XIII; 104 Stat. 1388-573; codified as amended at scattered sections of 2 U.S.C. & 15 U.S.C. ยง 1022) was enacted by the United States Congress as title XIII of the Omnibus Budget Reconciliation Act of 1990 to enforce the deficit reduction accomplished by that law and revise the budget control process of the Federal Government. The Act created two new budget control processes: a set of caps on annually-appropriated spending, and a "pay-as-you-go" or "PAYGO" process for entitlements and taxes. The law departed from the fixed deficit targets of Gramm-Rudman-Hollings, and imposed no penalty if the deficit for a given year grew outside the Office of Management and Budget "Snapshot" or deficit estimate, provided this budget growth was out of Congress' control.
The act has since been extended several times, most recently with the Balanced Budget Act of 1997. It expired in 2002, but Democrats have made it a top priority in the 110th Congress where they are the majority.
