What is Gramm-Rudman Hollings Budget Act of 1985 and 1987?

Answer 1

The Gramm-Rudman-Hollings Budget Act, enacted in 1985 and amended in 1987, was a U.S. law aimed at reducing the federal budget deficit through mandatory spending cuts. It established a framework for achieving budgetary balance by setting annual deficit targets, which would automatically trigger across-the-board spending cuts if Congress failed to meet these targets. The act was significant for introducing the concept of "sequestration," where specific budgetary reductions would take effect if deficit goals were not met. Despite its intentions, the act faced challenges and was ultimately deemed ineffective in fully curbing budget deficits.