To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to limit the year-to-year increase in total Federal spending to increases in the Consumer Price Index and population.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Save America's Future Economy Act of 
2010''.

SEC. 2. LIMITATION ON THE GROWTH OF FEDERAL SPENDING.

    (a) In General.--Part C of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding after section 253 the 
following new section:

``SEC. 253A. LIMITATION ON THE GROWTH OF FEDERAL SPENDING.

    ``(a) Reducing Nonexempt Spending Accounts by a Uniform 
Percentage.--OMB shall calculate the uniform percentage by which 
nonexempt spending accounts are to be sequestered such that the total 
spending of the Government for a budget year compared to the preceding 
fiscal year does not increase at a rate greater than the percentage 
point change in the Consumer Price Index plus the percentage point 
change in annual population growth as computed under this section.
    ``(b) January OMB Reports.--In January of each calendar year, OMB 
shall prepare a report which shall be included in the budget submission 
of the President under section 1105(a) of title 31, United States Code, 
for the fiscal year beginning on October 1 of that calendar setting 
forth--
            ``(1) the projected level of total Federal spending for the 
        current year;
            ``(2) the percentage point increase in the Consumer Price 
        Index over the 12-month period comprising the fiscal year 
        before the current year;
            ``(3) the total percentage point increase in population 
        from July 1 of the second preceding fiscal year before the 
        current year and July 1 of the fiscal year before the current 
        year;
            ``(4) the sum of the total percentage point increases under 
        paragraphs (2) and (3); and
            ``(5) the projected level of total Federal spending for the 
        budget year and the amount, if any, by which that spending 
        would exceed the projected level of total Federal spending for 
        the current year as adjusted by the sum of the total percentage 
        point increases under paragraphs (2) and (3).
    ``(c) Preview Report.--Not later than August 20 of each calendar 
year, OMB shall prepare and have printed in the Federal Register a 
preview report which shall set forth for the budget year the following:
            ``(1) An up-to-date reestimate of all of the information 
        set forth in the most recent report of OMB under subsection 
        (b).
            ``(2) The estimated percentage point reduction that would 
        be required in nonexempt spending accounts in order to limit 
        total Federal spending as set forth under paragraph (1).
    ``(d) OMB Final Sequestration Report.--Not later than 15 days after 
Congress adjourns to end a session, but after any sequestration under 
section 5 of the Statutory Pay-As-You-Go Act of 2010, OMB shall prepare 
and have printed in the Federal Register a final sequestration report 
which shall set forth for the budget year the following:
            ``(1) An up-to-date reestimate of all of the information 
        set forth in the most recent report of OMB under subsection 
        (c), taking into account any sequestration under such section 
        5.
            ``(2) The percentage point reduction that would be required 
        in nonexempt spending accounts in order to limit total Federal 
        spending as set forth under paragraph (1).
            ``(3) The amount by which total Federal spending exceeds 
        the permissible amount of such spending under this section.
    ``(e) Presidential Order.--On the same day that OMB issues its 
final sequestration report, the President shall issue an order fully 
implementing without change all sequestrations required by the OMB 
calculation set forth in that report. This order shall be effective on 
issuance.
    ``(f) Adjustment for Emergency Spending.--(1) If a provision is 
enacted as an emergency requirement that the Congress so designates in 
statute pursuant to this subsection, the amounts of new budget 
authority and outlays in all fiscal years resulting from that provision 
shall be treated as an emergency requirement for the purposes of this 
section.
    ``(2) If a provision is designated as an emergency requirement 
under this section, OMB shall not include the budgetary effects of such 
a provision in its estimates under this section.
    ``(g) Exemptions.--The following shall be exempt from reduction 
under any order issued under this section:
            ``(1) Payments for net interest.
            ``(2) Any obligations of the Government required to be paid 
        under the United States Constitution or legally contractual 
        obligations.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 250(a) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 is amended by inserting after the item relating to section 253 
the following new item:

``253A. Limitation on the growth of Federal spending.''.

SEC. 3. ELIMINATION OF EXPIRATION DATE.

    Section 275(b) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is repealed.

SEC. 4. EFFECTIVE DATE.

    This Act and the amendments made by it shall apply to fiscal year 
2012 and subsequent fiscal years.

Summary: Save America's Future Economy Act of 2010 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to require the Office of Management and Budget (OMB) to calculate the uniform percentage by which nonexempt spending accounts are to be sequestered such that total government spending for a budget year, compared to the preceding fiscal year, does not increase at a rate greater than the percentage point change in the Consumer Price Index (CPI) plus the percentage point change in annual population growth. Requires OMB to prepare annually a report to be included in the President's budget for each fiscal year setting forth: (1) the projected level of total federal spending for the current year. (2) the percentage point increase in the CPI over the fiscal year before the current year. (3) the total percentage point increase in population from July 1 of the second preceding fiscal year before the current year and July 1 of the fiscal year before the current year, (4) the sum of such total percentage point increases. And (5) the projected level of total federal spending for the budget year and the amount, if any, by which that spending would exceed the projected level of total federal spending for the current year, as adjusted by the such sum of the total percentage point increases. Prescribes requirements for OMB Preview Reports and OMB Final Sequestration Reports. Requires the President to issue a sequestration order, effective on issuance, if OMB in its Final Sequestration Report estimates that any sequestration is required. Prohibits OMB from including the budgetary effects of an emergency requirement in its estimates. Exempts from any sequestration reduction order: (1) payments for net interest. And (2) federal obligations required to be paid under the US Constitution or legally contractual obligations. Extends indefinitely certain Pay-As-You-Go (PAYGO) enforcement mechanisms.