Truth in Budgeting Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Truth in Budgeting Act''.

SEC. 2. BUDGETARY TREATMENT OF HIGHWAY TRUST FUND, AIRPORT AND AIRWAY 
              TRUST FUND, INLAND WATERWAYS TRUST FUND, AND HARBOR 
              MAINTENANCE TRUST FUND.

    (a) In General.--Notwithstanding any other provision of law except 
the Line Item Veto Act of 1996, the receipts and disbursements of the 
Highway Trust Fund, the Airport and Airway Trust Fund, the Inland 
Waterways Trust Fund, and the Harbor Maintenance Trust Fund--
            (1) shall not be counted as new budget authority, outlays, 
        receipts, or deficit or surplus for purposes of--
                    (A) the budget of the United States Government as 
                submitted by the President,
                    (B) the congressional budget (including allocations 
                of budget authority and outlays provided therein), or
                    (C) the Balanced Budget and Emergency Deficit 
                Control Act of 1985; and
            (2) shall be exempt from any general budget limitation 
        imposed by statute on expenditures and net lending (budget 
        outlays) of the United States Government.
    (b) Limitation on Interest Paid to Trust Funds.--
            (1) In general.--Paragraph (3) of section 9602(b) of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new sentence: ``The amount of interest credited 
        to the Airport and Airway Trust Fund, the Highway Trust Fund, 
        the Harbor Maintenance Trust Fund, or the Inland Waterways 
        Trust Fund for any fiscal year shall not exceed the amount of 
        interest which would be credited to such Fund if such interest 
        were determined at the average interest rate on 52-week 
        Treasury securities sold to the public during such fiscal 
        year.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to fiscal years beginning after the date of the 
        enactment of this Act.

SEC. 3. SAFEGUARDS AGAINST DEFICIT SPENDING OUT OF AIRPORT AND AIRWAY 
              TRUST FUND.

    (a) In General.--Chapter 471 of title 49, United States Code, is 
amended--
            (1) by redesignating section 47131 as section 47132; and
            (2) by inserting after section 47130 the following new 
        section:
``Sec. 47131. Safeguards against deficit spending
    ``(a) Estimates of Unfunded Aviation Authorizations and Net 
Aviation Receipts.--Not later than March 31 of each year, the 
Secretary, in consultation with the Secretary of the Treasury, shall 
estimate--
            ``(1) the amount which would (but for this section) be the 
        unfunded aviation authorizations at the close of the first 
        fiscal year that begins after that Mach 31, and
            ``(2) the net aviation receipts at the close of such fiscal 
        year.
    ``(b) Procedure if Excess Unfunded Aviation Authorizations.--If the 
Secretary determines for any fiscal year that the amount described in 
subsection (a)(1) exceeds the amount described in subsection (a)(2), 
the Secretary shall determine the amount of such excess.
    ``(c) Adjustment of Authorizations if Unfunded Authorizations 
Exceed Receipts.--
            ``(1) Determination of percentage.--If the Secretary 
        determines that there is an excess referred to in subsection 
        (b) for a fiscal year, the Secretary shall determine the 
        percentage which--
                    ``(A) such excess, is of
                    ``(B) the total of the amounts authorized to be 
                appropriated from the Airport and Airway Trust Fund for 
                the next fiscal year.
            ``(2) Adjustment of authorizations.--If the Secretary 
        determines a percentage under paragraph (1), each amount 
        authorized to be appropriated from the Airport and Airway Trust 
        Fund for the next fiscal year shall be reduced by such 
        percentage.
    ``(d) Availability of Amounts Previously Withheld.--
            ``(1) Adjustment of authorizations.--If, after a reduction 
        has been made under subsection (c)(2), the Secretary determines 
        that the amount described in subsection (a)(1) does not exceed 
        the amount described in subsection (a)(2) or that the excess 
        referred to in subsection (b) is less than the amount 
        previously determined, each amount authorized to be 
        appropriated that was reduced under subsection (c)(2) shall be 
        increased, by an equal percentage, to the extent the Secretary 
        determines that it may be so increased without causing the 
        amount described in subsection (a)(1) to exceed the amount 
        described in subsection (a)(2) (but not by more than the amount 
        of the reduction).
            ``(2) Apportionment.--The Secretary shall apportion amounts 
        made available for apportionment by paragraph (1).
            ``(3) Period of availability.--Any funds apportioned under 
        paragraph (2) shall remain available for the period for which 
        they would be available if such apportionment took effect with 
        the fiscal year in which they are apportioned under paragraph 
        (2).
    ``(e) Reports.--Any estimate under subsection (a) and any 
determination under subsection (b), (c), or (d) shall be reported by 
the Secretary to Congress.
    ``(f) Definitions.--For purposes of this section, the following 
definitions apply:
            ``(1) Net aviation receipts.--The term `net aviation 
        receipts' means, with respect to any period, the excess of--
                    ``(A) the receipts (including interest) of the 
                Airport and Airway Trust Fund during such period, over
                    ``(B) the amounts to be transferred during such 
                period from the Airport and Airway Trust Fund under 
                section 9502(d) of the Internal Revenue Code of 1986 
                (other than paragraph (1) thereof).
            ``(2) Unfunded aviation authorizations.--The term `unfunded 
        aviation authorization' means, at any time, the excess (if any) 
        of--
                    ``(A) the total amount authorized to be 
                appropriated from the Airport and Airway Trust Fund 
                which has not been appropriated, over
                    ``(B) the amount available in the Airport and 
                Airway Trust Fund at such time to make such 
                appropriation (after all other unliquidated obligations 
                at such time which are payable from the Airport and 
                Airway Trust Fund have been liquidated).''.
    (b) Conforming Amendment.--The analysis for chapter 471 of title 
49, United States Code, is amended by striking

``47131. Annual report.''
and inserting the following:

``47131. Safeguards against deficit spending.
``47132. Annual report.''.

SEC. 4. SAFEGUARDS AGAINST DEFICIT SPENDING OUT OF THE INLAND WATERWAYS 
              TRUST FUND AND HARBOR MAINTENANCE TRUST FUND.

    (a) Estimates of Unfunded Inland Waterways Authorizations and Net 
Inland Waterways Receipts.--Not later than March 31 of each year, the 
Secretary of the Army, in consultation with the Secretary of the 
Treasury, shall estimate--
            (1) the amount which would (but for this section) be the 
        unfunded inland waterways authorizations and unfunded harbor 
        maintenance authorizations at the close of the first fiscal 
        year that begins after that March 31; and
            (2) the net inland waterways receipts and net harbor 
        maintenance receipts at the close of such fiscal year.
    (b) Procedure If Excess Unfunded Inland Waterways Authorizations.--
If the Secretary of the Army determines with respect to the Inland 
Waterways Trust Fund or the Harbor Maintenance Trust Fund for any 
fiscal year that the amount described in subsection (a)(1) exceeds the 
amount described in subsection (a)(2), the Secretary shall determine 
the amount of such excess.
    (c) Adjustment of Authorizations if Unfunded Authorizations Exceed 
Receipts.--
            (1) Determination of percentage.--If the Secretary of the 
        Army determines that there is an excess referred to in 
        subsection (b) for a fiscal year, the Secretary of the Army 
        shall determine the percentage which--
                    (A) such excess, is of
                    (B) the total of the amounts authorized to be 
                appropriated from the Inland Waterways Trust Fund or 
                the Harbor Maintenance Trust Fund, as the case may be, 
                for the next fiscal year.
            (2) Adjustment of authorizations.--If the Secretary of the 
        Army determines a percentage under paragraph (1), each amount 
        authorized to be appropriated from the Trust Fund for the next 
        fiscal year shall be reduced by such percentage.
    (d) Availability of Amounts Previously Withheld.--If, after an 
adjustment has been made under subsection (c)(2), the Secretary of the 
Army determines with respect to the Inland Waterways Trust Fund or the 
Harbor Maintenance Trust Fund that the amount described in subsection 
(a)(1) does not exceed the amount described in subsection (a)(2) or 
that the excess referred to in subsection (b) with respect to the Trust 
Fund is less than the amount previously determined, each amount 
authorized to be appropriated that was reduced under subsection (c)(2) 
with respect to the Trust Fund shall be increased, by an equal 
percentage, to the extent the Secretary of the Army determines that it 
may be so increased without causing the amount described in subsection 
(a)(1) to exceed with respect to the Trust Fund the amount described in 
subsection (a)(2) (but not by more than the amount of the reduction).
    (e) Reports.--Any estimate under subsection (a) and any 
determination under subsection (b), (c), or (d) shall be reported by 
the Secretary of the Army to Congress.
    (f) Definitions.--For purposes of this section the following 
definitions apply:
            (1) Airport and airway trust fund.--The term ``Airport and 
        Airway Trust Fund'' means the Airport and Airway Trust Fund 
        established by section 9502 of the Internal Revenue Code of 
        1986.
            (2) Harbor maintenance trust fund.--The term ``Harbor 
        Maintenance Trust Fund'' means the Harbor Maintenance Trust 
        Fund established by section 9505 of the Internal Revenue Code 
        of 1986.
            (3) Highway trust fund.--The term ``Highway Trust Fund'' 
        means the Highway Trust Fund established by section 9503 of the 
        Internal Revenue Code of 1986.
            (4) Inland waterways trust fund.--The term ``Inland 
        Waterways Trust Fund'' means the Inland Waterways Trust Fund 
        established by section 9506 of the Internal Revenue Code of 
        1986.
            (5) Net harbor maintenance receipts.--The term ``net harbor 
        maintenance receipts'' means, with respect to any period, the 
        receipts (including interest) of the Harbor Maintenance Trust 
        Fund during such period.
            (6) Net inland waterways receipts.--The term ``net inland 
        waterways receipts'' means, with respect to any period, the 
        receipts (including interest) of the Inland Waterways Trust 
        Fund during such period.
            (7) Unfunded inland waterways authorizations.--The term 
        ``unfunded inland waterways authorizations'' means, at any 
        time, the excess (if any) of--
                    (A) the total amount authorized to be appropriated 
                from the Inland Waterways Trust Fund which has not been 
                appropriated, over
                    (B) the amount available in the Inland Waterways 
                Trust Fund at such time to make such appropriations.
            (8) Unfunded harbor maintenance authorizations.--The term 
        ``unfunded harbor maintenance authorizations'' means, at any 
        time, the excess (if any) of--
                    (A) the total amount authorized to be appropriated 
                from the Harbor Maintenance Trust Fund which has not 
                been appropriated, over
                    (B) the amount available in the Harbor Maintenance 
                Trust Fund at such time to make such appropriations.

SEC. 5. APPLICABILITY.

    This Act (including the amendments made by this Act) shall apply to 
fiscal years beginning after September 30, 1995.

            Passed the House of Representatives April 17, 1996.

            Attest:

                                                                 Clerk.

Summary: Truth in Budgeting Act - Prohibits the receipts and disbursements of the Highway Trust Fund, the Airport and Airway Trust Fund, the Inland Waterways Trust Fund, and the Harbor Maintenance Trust Fund from being counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of the Federal budget as submitted by the President, the congressional budget, or the Balanced Budget and Emergency Deficit Control Act of 1985 . Exempts such trust funds from any general statutory budget outlays limitation. Amends the Internal Revenue Code to limit the amount of interest that may be credited to such trust funds. Amends Federal transportation law to require the Secretary of Transportation to estimate annually: (1) what, but for this Act, would be at the close of the next fiscal year the amount of unfunded aviation authorizations. And (2) the net aviation receipts at the close of such year. Requires the Secretary to: (1) determine the amount by which unfunded aviation authorizations do or do not exceed net aviation receipts. And (2) make appropriate adjustments to amounts authorized to be appropriated from the Airport and Airway Trust Fund based on the difference. Sets forth similar provisions with respect to the Inland Waterways Trust Fund and the Harbor Maintenance Trust Fund.