A bill to amend the Balanced Budget and Emergency Deficit Control Act of 1985 to modify the discretionary spending limits to take into account savings resulting from the reduction in the number of Federal employees and extending the pay freeze for Federal employees.

Summary: Down Payment to Protect National Security Act of 2012 - Requires the Director of the Office of Management and Budget (OMB) to determine the number of full-time employees employed in each federal agency. Prohibits a federal agency head from hiring more than 2 employee for every 3 full-time employees who leave employment in such agency until the OMB Director makes a determination that the number of full-time federal employees is 5% less than the initial level as determined by OMB. Allows a waiver of such workforce limitation by the President for national security reasons or in the case of an extraordinary emergency.

Amends the Continuing Appropriations Act, 2011 to extend the freeze on the pay of federal employees, including Members of Congress, until June 30, 2014.

Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act), as amended by the Budget Control Act of 2011, to offset mandatory sequestration in security and nonsecurity categories in FY2013-FY2021 with revenues resulting from the reduction in the federal workforce and the pay freeze under this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Down Payment to Protect National 
Security Act of 2012''.

SEC. 2. REDUCTION IN THE NUMBER OF FEDERAL EMPLOYEES.

    (a) Definition.--In this section, the term ``agency'' has the 
meaning given the term ``Executive agency'' under section 105 of title 
5, United States Code.
    (b) Determination of Number of Employees.--Not later than 60 days 
after the date of enactment of this Act, the Director of the Office of 
Management and Budget shall determine the number of full-time employees 
employed in each agency. The head of each agency shall cooperate with 
the Director of the Office of Management and Budget in making the 
determinations.
    (c) Replacement Hire Rate.--
            (1) In general.--During the period described under 
        paragraph (2), the head of each agency may hire no more than 2 
        employees in that agency for every 3 employees who leave 
        employment in that agency.
            (2) Period of replacement hire rate.--Paragraph (1) shall 
        apply to each agency during the period beginning 60 days after 
        the date of enactment of this Act through the date on which the 
        Director of the Office of Management and Budget makes a 
        determination that the number of full-time employees employed 
        in that agency is 5 percent less than the number of full-time 
        employees employed in that agency determined under subsection 
        (a).
    (d) Waivers.--This section may be waived upon a determination by 
the President that--
            (1) the existence of a state of war or other national 
        security concern so requires; or
            (2) the existence of an extraordinary emergency threatening 
        life, health, public safety, property, or the environment so 
        requires.

SEC. 3. EXTENSION OF PAY FREEZE FOR FEDERAL EMPLOYEES.

    (a) In General.--Section 147 of the Continuing Appropriations Act, 
2011 (Public Law 111-242; 5 U.S.C. 5303 note) is amended--
            (1) in subsection (b)(1), by striking ``December 31, 2012'' 
        and inserting ``June 30, 2014''; and
            (2) in subsection (c), by striking ``December 31, 2012'' 
        and inserting ``June 30, 2014''.
    (b) Clarification That Freeze Applies to Members of Congress.--
Notwithstanding any other provision of law, no adjustment shall be made 
under section 601(a) of the Legislative Reorganization Act of 1946 (2 
U.S.C. 31) (relating to cost of living adjustments for Members of 
Congress) during the period beginning on the first day of the first pay 
period beginning on or after February 1, 2013 and ending on June 30, 
2014.

SEC. 4. REDUCTION OF REVISED DISCRETIONARY SPENDING LIMITS TO ACHIEVE 
              SAVINGS FROM FEDERAL EMPLOYEE PROVISIONS.

    Paragraph (2) of section 251A of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901a) is amended to read as 
follows:
            ``(2) Revised discretionary spending limits.--The 
        discretionary spending limits for fiscal years 2013 through 
        2021 under section 251(c) shall be replaced with the following:
                    ``(A) For fiscal year 2013--
                            ``(i) for the revised security category, 
                        $546,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $501,000,000,000 in budget authority.
                    ``(B) For fiscal year 2014--
                            ``(i) for the revised security category, 
                        $551,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $500,000,000,000 in budget authority.
                    ``(C) For fiscal year 2015--
                            ``(i) for the revised security category, 
                        $560,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $510,000,000,000 in budget authority.
                    ``(D) For fiscal year 2016--
                            ``(i) for the revised security category, 
                        $571,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $520,000,000,000 in budget authority.
                    ``(E) For fiscal year 2017--
                            ``(i) for the revised security category, 
                        $584,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $531,000,000,000 in budget authority.
                    ``(F) For fiscal year 2018--
                            ``(i) for the revised security category, 
                        $598,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $543,000,000,000 in budget authority.
                    ``(G) For fiscal year 2019--
                            ``(i) for the revised security category, 
                        $610,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $556,000,000,000 in budget authority.
                    ``(H) For fiscal year 2020--
                            ``(i) for the revised security category, 
                        $624,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $568,000,000,000 in budget authority.
                    ``(I) For fiscal year 2021--
                            ``(i) for the revised security category, 
                        $638,000,000,000 in budget authority; and
                            ``(ii) for the revised nonsecurity 
                        category, $579,000,000,000 in budget 
                        authority.''.

SEC. 5. CALCULATION OF TOTAL DEFICIT REDUCTION.

    Section 251A of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 901a) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A), by striking 
                ``$1,200,000,000,000'' and inserting 
                ``$1,073,000,000,000''; and
                    (B) in subparagraph (D), by striking ``by 9'' and 
                inserting ``by 8'';
            (2) in paragraph (4), by striking ``On January 2, 2013, for 
        fiscal year 2013, and in'' and inserting ``In'';
            (3) in paragraphs (5) and (6), by striking ``2013'' each 
        place it appears and inserting ``2014''; and
            (4) in paragraph (7)--
                    (A) by striking ``reductions.--'' and all that 
                follows through ``Fiscal years 2014-2021.--On the 
                date'' and inserting ``reductions.--On the date''; and
                    (B) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively, and adjusting 
                the margin accordingly.