Nickel Plan Act

HR 260, the Nickel Plan Act, establishes annual federal spending limits to control budget growth. It sets a cap of $5.95 trillion (less 5% for interest) for fiscal year 2024, decreasing by 5% each year through 2027, then tying future spending to 17.5% of GDP starting in 2028. If spending exceeds these limits, the Office of Management and Budget triggers automatic spending cuts (sequestration) by October 31 each year. The bill also prevents Congress from passing legislation that would breach these caps without a two-thirds vote in both chambers, enforcing the limits through procedural rules.