This year during President Trump’s tweeted ravings, the national debt topped $21 trillion for first time ever. More than a year ago, President Trump pledged to eliminate the national debt “over a period of eight years.” But for the first time in history, the national debt surpassed $21 trillion, while Trump is facing 17 criminal investigations, another presidential record.
With the Trump deficit growing a bill in the House of Representatives will make it worse. H.R. 6771 would change the disposition of the proceeds from federal oil and gas leases in the Outer Continental Shelf (OCS) and other federal lands.
Under the Gulf of Mexico Energy Security Act of 2006, half of the proceeds from OCS leases issued after 2006 are deposited in the Treasury and the remainder is available for spending without further appropriation, subject to annual caps on spending that expire after 2055. This bill would repeal the annual spending limits and would increase the portion of OCS receipts available for spending to 62.5%. In addition, the bill would increase the share of proceeds paid to states from onshore mineral leases from 49% to 50%.
CBO estimates that enacting H.R. 6771 would increase direct spending by $2.5 billion over the 2019-2028 period, largely as a result of provisions increasing the portion of OCS receipts that could be spent without further appropriation.
CBO also estimates that enacting H.R. 6771 would increase net direct spending and on-budget deficits by more than $5 billion in each of the four consecutive 10-year periods beginning in 2029.
Because enacting H.R. 6771 would affect direct spending, pay-as-you-go procedures apply. The bill would not affect revenues.
H.R. 6771 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would benefit states by increasing the share of proceeds they receive from oil and gas production in the OCS and other federal lands.