PAYGO Legislation Law and Legal Definition

"PAYGO legislation" or a "PAYGO Act" refers to “a bill or joint resolution that affects direct spending or revenue relative to the baseline. The budgetary effects of changes in revenues and outyear modifications to substantive law included in appropriation Acts as defined in paragraph (4) shall be treated as if they were contained in PAYGO legislation or a PAYGO Act.” (2 USCS § 932)