Budget Control Act
The Budget Control Act is a federal law enacted in 2011 aimed at reducing the national deficit. It established strict limits on discretionary spending and created a process for automatic spending cuts, known as "sequestration," if Congress did not meet deficit reduction targets. This act was a response to concerns about rising national debt and aimed to promote fiscal responsibility.
The act also set up a framework for raising the federal debt ceiling, allowing the government to borrow money to meet its existing obligations. By doing so, it sought to prevent a government shutdown and ensure that the United States could continue to fund essential services and programs.