Explore the Plans
Solutions Initiative 2024 brings together leading policy organizations from across the political spectrum to put forward comprehensive plans that set America on a stronger, more sustainable fiscal path. The Peterson Foundation asked experts from seven leading organizations — the American Action Forum, the American Enterprise Institute, the Bipartisan Policy Center, the Center for American Progress, the Economic Policy Institute, the Manhattan Institute, and the Progressive Policy Institute — to develop specific policy proposals and recommendations to address our fiscal situation and meet their policy priorities over the next 30 years.
All seven groups recognized that the trajectory of the debt under current law is unsustainably high, and recommended a comprehensive set of proposals to substantially reduce future borrowing. The seven organizations all would reduce America’s debt-to-GDP by at least one-third over the next 30 years, and lower 30-year interest costs by at least $13 trillion. Though each group applies its unique policy priorities and ideological perspectives to addressing the nation’s fiscal challenges, a number of commonalities exist among the plans, suggesting valuable policy opportunities for lawmakers.
Top Policy
Recommendations
American
Action Forum
AAF believes that the United States is on a dangerous fiscal path that requires dramatic action on both sides of the budget to be rectified. Their proposal contains sweeping changes to both spending and revenues to successfully reduce the debt relative to GDP.
Top Recommendations:
- Entitlement Reform
- Addressing Global Threats
- Tax Reform
The AEI proposal narrows the fiscal imbalance, limits the size of government, and adopts a more growth-friendly tax code. It reflects the view that fiscally sound policy requires difficult choices, but does not require us to turn our backs on the elderly and the less fortunate.
Top Recommendations:
- Make Healthcare Programs More Efficient
- Better Target Social Security
- Reform the Tax System
American Enterprise
Institute
The BPC proposal is aimed at strengthening and stabilizing our fiscal outlook through policies that can win broad support across party lines. To help meet this goal, BPC’s plan prioritizes reforms of key processes surrounding the most basic elements of governing, including proposals to address the debt limit, discourage government shutdowns, and ensure on time budgeting.
Top Recommendations:
- Pay for TCJA Extension
- Broad Based Tax Reform
- Strengthen Social Security
The CAP plan places America on a more stable fiscal trajectory while safeguarding commitments to seniors, investing in the American people, and preventing interest costs from crowding out private and public investments that will help us move toward a greener, more resilient economy.
Top Recommendations:
- Increase Nondefense Discretionary Spending
- Invest in People
- Ask the Wealthy and Large Corporations to Pay Their Fair Share
Center for American Progress
Economic Policy
Institute
EPI’s budget plan provides an aspirational blueprint for a progressive governing majority. EPI prioritizes maintaining social insurance and income support programs as well as the vital public investment efforts begun in recent years to accelerate decarbonization.
Top Recommendations:
- Address Provisions of the TCJA
- Strengthen Social Security Trust Funds
- Reduce Healthcare Costs
Manhattan Institute’s proposal would stabilize the long-term debt at around 100 percent of GDP through 2040. Thereafter, a “virtuous cycle” of compounding policy and interest savings resulting from the budget plan would reduce the debt to 68 percent of GDP by 2054.
Top Recommendations:
- Reform Social Security
- Rethink Healthcare Entitlements
- Raise Revenues Responsibly
Manhattan Institute
Progressive
Policy Institute
PPI’s plan puts the budget on a sustainable course in order to restore fiscal democracy and give future policymakers the flexibility to address unforeseen needs. PPI’s proposal prioritizes fiscal restraint to reduce deficits and prevent ballooning interest costs, while leaving room for pro-growth investments that lay the foundation for a more abundant and equitable America.
Top Recommendations:
- Replace TCJA with Real Pro-Growth Tax Reform
- Revitalize Public Investment
- Modernize Retirement and Health Programs