FOR IMMEDIATE RELEASE:
September 16th, 2025
Contact: Press_Paul@paul.senate.gov, 202-224-4343
Dr. Rand Paul Introduces Six Penny Plan to Balance the Federal Budget in Five Years
WASHINGTON, D.C. – U.S. Senator Rand Paul (R-KY) has introduced the Six Penny Plan, a federal budget resolution that will balance on-budget outlays and revenues within five years by cutting six cents off every dollar projected to be spent over the next five fiscal years.
During the current fiscal year, the federal government overspent and added $2.1 trillion to the gross national debt; an increase of $16,117 for every U.S. household. The federal government’s overspending for FY2025 is projected to result in the third-highest deficit in U.S. history.
According to the Congressional Budget Office (CBO), the United States is on track to record the third-largest deficit in American history this year. Interest payments on the debt now surpass the America’s military spending, underscoring how runaway borrowing is crowding out core national priorities. With the national debt exceeding $37 trillion, it now stands at nearly twice the value of all bank deposits in the country. Put another way, even if all American bank accounts were emptied to pay down the debt, the amount would cover only about half of what Washington owes.
When Dr. Paul first introduced a penny plan in 2017, a simple spending freeze was enough to balance the budget within five years. Today, because of years of reckless spending, achieving balance requires reducing projected spending by six percent annually. Under the Six Penny Plan, the first year would result in spending at 94 percent of current levels, with annual reductions of six percent continuing until balance is achieved in year five. After the fifth year, spending would be allowed to rise at the same pace as revenues over the next five years.
“I introduced my first Penny Plan in 2018, prior to that, a spending freeze was all it took to balance the budget in five years,” said Dr. Paul. “Today, runaway deficits and skyrocketing interest costs mean it will take a six percent reduction annually just to get us back on track. The math doesn’t lie. Either we take responsibility now, or we condemn our children and grandchildren to economic ruin.”
Read the Six Penny Plan HERE.
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