Its primary purpose was to provide members of Congress with a personal financial incentive to curb the federal government's budget deficits.
Key details of the proposed pay adjustments included: Exemptions were provided for spending deemed by the Congressional Budget Office (CBO) to be directly related to military conflicts lasting over 30 days or in response to terrorist attacks on U.S.
[2] The bill aimed to directly link Congressional salaries to federal fiscal performance, thereby incentivizing lawmakers to adopt balanced budget measures.
Critics, however, expressed concerns about its effectiveness and potential unintended consequences, such as incentivizing short-term fiscal decisions over long-term economic stability.
Although the Fiscal Responsibility Act of 2007 did not become law, its introduction set the stage for future discussions on accountability mechanisms within Congress.