Washington, D.C. - U.S. Reps. Mark Udall (D-CO) and Steve Chabot (R-OH) today proposed legislation that would provide a new approach to pay for relief and reconstruction from the damage caused by Hurricanes Katrina and Rita and to restore fiscal sanity to the budget process.

The "Stimulating Leadership In Cutting Expenditures" Act (SLICE Act) would authorize the President to identify specific items of federal spending that he thinks should be cut, and would require Congress to vote on each of those items.

It would apply not only to regular spending bills, but also to the transportation bill that was passed and signed into law earlier this year. The bill would establish a two-phase process: the president would have until November 1st to tell Congress which, if any, of the spending in the transportation bill should be cancelled. And he would have until the end of this year to identify any items in fiscal year 2006 appropriations bills he wants to eliminate. In each case, if the president proposes a cut, Congress would have to vote on it - it could not ignore the proposal, as can be done under current law - and if a majority approved the cut, it would take effect.

"It's essential for us to respond to the devastation brought by Hurricanes Katrina and Rita. But as we do, we should consider and respond to the fiscal and economic risks we have been running. I think there's an urgent need for both the Bush administration and Congress to face hard reality and not continue with budget policies based on defying the laws of fiscal gravity," said Udall. "It is past time for a serious debate about specific proposals for ways to dig ourselves out of the deficit hole. This bill is intended to jump-start that debate."

"We are facing some significant budget problems and with recent events the situation will only get worse," said Chabot. "I'm pleased to have an opportunity to work with Congressman Udall to bring some fiscal sanity back to Washington. Protecting the taxpayer's hard-earned money is an issue that deserves bipartisan cooperation."

Rep. Jeff Flake (R-AZ), a member of the Republican Study Committee, also is a cosponsor of the bill.