A bill to exempt the Department of Defense and other national security agencies from sequestration.

Summary: This bill amends the Balanced Budget and Emergency Deficit Control Act of 1985 to exempt national security agencies from sequestration, which is a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals.  The exemption applies to the Department of Defense, each element of the intelligence community, the Department of State, the Federal Bureau of Investigation, the Department of Homeland Security, and the National Nuclear Security Administration. 

SECTION 1. EXEMPTION OF NATIONAL SECURITY AGENCIES FROM SEQUESTRATION.

    (a) In General.--Section 255(f) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 905(f)) is amended to 
read as follows:
    ``(f) Exemption of National Security Agencies.--The programs, 
budget accounts, and activities of the following departments, agencies, 
and elements shall be exempt from reduction under any order issued 
under this part:
            ``(1) The Department of Defense.
            ``(2) Each element of the intelligence community (as 
        defined in section 3 of the National Security Act of 1947 (50 
        U.S.C. 3003)).
            ``(3) The Department of State.
            ``(4) The Federal Bureau of Investigation.
            ``(5) The Department of Homeland Security.
            ``(6) The National Nuclear Security Administration.''.
    (b) Implementation of Enforcement.--Section 251(a)(2) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
901(a)(2)) is amended--
            (1) by striking ``Each non-exempt account'' and inserting 
        the following:
                    ``(A) In general.--Subject to subparagraph (B), 
                each non-exempt account''; and
            (2) by adding at the end the following:
                    ``(B) Implementation with respect to national 
                security agencies.--
                            ``(i) In general.--The Office of Management 
                        and Budget shall determine the uniform 
                        percentage necessary to eliminate a breach 
                        within a category without regard to section 
                        255(f).
                            ``(ii) Rule of construction.--Nothing in 
                        clause (i) or section 255(f) shall be construed 
                        to require the elimination of any portion of a 
                        breach that is not eliminated by operation of 
                        clause (i) and section 255(f).''.
    (c) Technical and Conforming Amendments.--The Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is 
amended--
            (1) in section 251 (2 U.S.C. 901)--
                    (A) in subsection (a)--
                            (i) by striking paragraph (3);
                            (ii) by redesignating paragraphs (4), (5), 
                        (6), and (7) as paragraphs (3), (4), (5), and 
                        (6), respectively;
                            (iii) in paragraph (3), as so redesignated, 
                        by striking ``paragraphs (2) and (3)'' and 
                        inserting ``paragraph (2)''; and
                            (iv) in paragraph (5), as so redesignated, 
                        by striking ``paragraphs (2) through (4)'' and 
                        inserting ``paragraphs (2) and (3)''; and
                    (B) in subsection (b)(2), by striking ``section 
                254(e), (f), or (g)'' and inserting ``subsection (d), 
                (e), or (f) of section 254'';
            (2) in section 254 (2 U.S.C. 904(a))--
                    (A) in the table in subsection (a), by striking the 
                item relating to notification regarding military 
                personnel;
                    (B) by striking subsection (d);
                    (C) by redesignating subsections (e) through (j) as 
                subsections (d) through (i), respectively; and
                    (D) in subsection (f), as so redesignated--
                            (i) by striking ``paragraph (f)(2)'' and 
                        inserting ``subsection (e)(2)''; and
                            (ii) by striking ``paragraphs (f)(2) and 
                        (f)(4)'' and inserting ``paragraphs (2) and (4) 
                        of subsection (e)'';
            (3) in section 256 (2 U.S.C. 906), by striking subsection 
        (g) and inserting the following:
    ``(g) Federal Pay.--
            ``(1) In general.--For purposes of any order issued under 
        section 254, Federal pay under a statutory pay system shall be 
        subject to reduction under an order in the same manner as other 
        administrative expense components of the Federal budget; except 
        that no such order may reduce or have the effect of reducing 
        the rate of pay to which any individual is entitled under any 
        such statutory pay system (as increased by any amount payable 
        under section 5304 of title 5, United States Code, or section 
        302 of the Federal Employees Pay Comparability Act of 1990) or 
        any increase in rates of pay which is scheduled to take effect 
        under section 5303 of title 5, United States Code, or any other 
        provision of law.
            ``(2) Definition.--For purposes of this subsection, the 
        term `statutory pay system' shall have the meaning given that 
        term in section 5302(1) of title 5, United States Code.''; and
            (4) in section 258(a)(1)--
                    (A) by striking ``section 254(i)'' and inserting 
                ``section 254(h)''; and
                    (B) by striking ``section 254(j)'' and inserting 
                ``section 254(i)''.
    (d) Applicability.--The amendments made by this section shall apply 
with respect to any sequestration order issued under the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) 
for fiscal year 2017 or any fiscal year thereafter.