Congressman Dennis Cardoza
18th Congressional District of California

WASHINGTON — Today, Congressman Cardoza joined President Obama and fellow fiscally conservative Blue Dog Democrats at the White House to praise the President for his commitment to return to PAYGO, a policy during the 1990s that is credited with reigning in reckless federal spending and reinstating the first federal budget surplus since 1969.

“The Blue Dogs have been fighting for many years to reinstate the proven fiscal tools that were allowed to expire in 2002,” said Congressman Cardoza. “It is more important than ever that we take action to address our nation’s spiraling deficit and ensure the nation is on a track toward fiscal health. I could not be more pleased to hear the President’s remarks today and his commitment to restoring the fiscal discipline that is sorely needed.”

PAYGO, or “pay-as-you-go,” requires that any new spending increases or tax cuts are fully paid for. The United States currently has a deficit of almost $11.4 trillion. Much of the new debt being accumulated is held by foreign countries, such as China.

Although the House of Representatives has a rule requiring PAYGO, President Obama today called on both the House and Senate to pass legislation ensuring this fiscal tool is a statutory requirement.  Under the President’s proposal, in order to spend a dollar, Congress must offset the cost. If at the end of a particular year Congress has not paid for all the legislation it has enacted, cuts are automatically triggered from certain mandatory programs.  This is the first piece of legislation that the Obama Administration has officially transmitted to Congress, signaling the President’s commitment to ending years of irresponsible fiscal policies.

Congressman Cardoza has long championed the issue of cutting deficit spending. Along with fellow Blue Dog Democrats, he has especially called for PAYGO.

“This is a great step toward bringing the country out of the abyss and putting it back on the road to fiscal responsibility and recovery,” said Congressman Cardoza.

In a meeting following the President’s announcement today, Congressman Cardoza again raised his concerns with senior White House staff over the economic situation that currently exists in the San Joaquin Valley, one of the hardest hit regions in the country.