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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3576 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3576

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 
           to establish spending limits and deficit control.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            December 7, 2011

 Mr. Campbell (for himself, Mr. Ryan of Wisconsin, Mr. Hensarling, Mr. 
  Guinta, Mr. Rokita, Mr. Chaffetz, and Mr. Stutzman) introduced the 
following bill; which was referred to the Committee on the Budget, and 
in addition to the Committee on Rules, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend the Balanced Budget and Emergency Deficit Control Act of 1985 
           to establish spending limits and deficit control.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Spending Control 
Act of 2011''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
              TITLE I--SPENDING LIMITS AND DEFICIT CONTROL

Sec. 101. Direct spending limits.
Sec. 102. Total spending limits.
Sec. 103. Deficit limits.
Sec. 104. Repeal of statutory PAYGO.
Sec. 105. Reports and orders.
Sec. 106. Exempt programs and activities; special sequestration rules.
Sec. 107. Adjustments for changes in direct spending.
              TITLE II--BUDGETING FOR EMERGENCIES AND WAR

Sec. 201. Allocations for the global war on terrorism.
Sec. 202. Emergency and global war on terrorism (GWOT) adjustment 
                            procedures.
Sec. 203. Elimination of emergency adjustments.
Sec. 204. Conforming amendment to the Balanced Budget and Emergency 
                            Deficit Control Act of 1985.
                   TITLE III--ENFORCING CUT-AS-YOU-GO

Sec. 301. Enforcing Cut-As-You-Go.
                TITLE IV--SUPERMAJORITY POINTS OF ORDER

Sec. 401. Supermajority points of order.

              TITLE I--SPENDING LIMITS AND DEFICIT CONTROL

SEC. 101. DIRECT SPENDING LIMITS.

    (a) Control of Direct Spending.--Section 252 of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended to read as 
follows:

``SEC. 252. DIRECT SPENDING LIMITS.

    ``(a) Direct Spending Limits.--The total level of direct spending 
for each fiscal year set forth below is as follows:
            ``(1) For fiscal year 2013--
                    ``(A) for Medicare, $515,001,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $293,611,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $474,527,000,000 in budget authority and the outlays 
                flowing therefrom.
            ``(2) For fiscal year 2014--
                    ``(A) for Medicare, $545,303,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $287,942,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $431,870,000,000 in budget authority and the outlays 
                flowing therefrom.
            ``(3) For fiscal year 2015--
                    ``(A) for Medicare, $568,450,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $276,890,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $401,509,000,000 in budget authority and the outlays 
                flowing therefrom.
            ``(4) For fiscal year 2016--
                    ``(A) for Medicare, $614,243,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $270,287,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $422,579,000,000 in budget authority and the outlays 
                flowing therefrom.
            ``(5) For fiscal year 2017--
                    ``(A) for Medicare, $633,169,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $288,914,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $414,028,000,000 in budget authority and the outlays 
                flowing therefrom.
            ``(6) For fiscal year 2018--
                    ``(A) for Medicare, $652,180,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $297,823,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $412,225,000,000 in budget authority and the outlays 
                flowing therefrom.
            ``(7) For fiscal year 2019--
                    ``(A) for Medicare, $706,477,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $318,508,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $423,383,000,000 in budget authority and the outlays 
                flowing therefrom.
            ``(8) For fiscal year 2020--
                    ``(A) for Medicare, $753,235,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $341,284,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $432,352,000,000 in budget authority and the outlays 
                flowing therefrom.
            ``(9) For fiscal year 2021--
                    ``(A) for Medicare, $803,952,000,000 in budget 
                authority and the outlays flowing therefrom;
                    ``(B) for Medicaid and other health-related 
                spending, $348,739,000,000 in budget authority and the 
                outlays flowing therefrom; and
                    ``(C) for all other direct spending, 
                $440,804,000,000 in budget authority and the outlays 
                flowing therefrom.
    ``(b) Sequestration.--(1) Within 15 calendar days after Congress 
adjourns to end a session and on the same day as a sequestration under 
sections 251, 251A, 253, but after any sequestration required by 
section 251 and 251A and before sections 252A and 253, there shall be a 
sequestration to eliminate any direct spending in excess of the direct 
spending limits set forth in subsection (a), as applicable, for the 
budget year.
    ``(2) The amount required to be sequestered in a fiscal year under 
paragraph (1)--
            ``(A) for Medicare spending shall be obtained from non-
        exempt direct spending accounts for Medicare;
            ``(B) for Medicaid and other health-related spending shall 
        be obtained from non-exempt direct spending accounts for 
        Medicaid and other health-related spending; and
            ``(C) for all other direct spending shall be obtained from 
        non-exempt direct spending accounts.
    ``(3) Each account referred to in subparagraph (A), (B), or (C) of 
paragraph (2) shall be reduced by the uniform percentage necessary to 
reduce any excess direct spending in accounts in that subparagraph to 
the applicable level set forth in subsection (a), as applicable, for 
the budget year.
    ``(c) Scorekeeping Guidelines.--OMB and CBO, after consultation 
with each other and the Committees on the Budget of the House of 
Representatives and the Senate, shall--
            ``(1) determine common scorekeeping guidelines; and
            ``(2) in conformance with such guidelines, prepare 
        estimates under this section''.
    (b) Definitions.--Section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by adding at the end 
the following new paragraphs:
            ``(22) The term `Medicare' means programs within budget 
        function 570.
            ``(23) The term `Medicaid and other health-related 
        spending' means programs within budget function 550.
            ``(24) The term `other direct spending' means programs 
        other than those within budget functions 550 and 570, excluding 
        Social Security and net interest.''.
    (c) Conforming Amendment.--The item relating to section 252 in the 
table of contents set forth in 250(a) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended to read as follows:

``Sec. 252. Direct spending limits.''.

SEC. 102. TOTAL SPENDING LIMITS.

    (a) Total Spending Limits.--The Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding after section 252 the 
following new section:

``SEC. 252A. TOTAL SPENDING LIMITS.

    ``(a) Sequestration.--(1) Within 15 calendar days after Congress 
adjourns to end a session and on the same day as a spending reduction 
ordered under sections 251, 251A, 252, and 253, but after any spending 
reduction required by sections 251, 251A, and 252, and before section 
253, there shall be a sequestration of all non-exempt direct spending 
accounts and discretionary accounts to eliminate any total spending in 
excess of the total spending limits set forth in subsection (b) for the 
budget year.
    ``(2) Each account referred to in paragraph (1) shall be reduced by 
the uniform percentage necessary to reduce total spending to the 
applicable level set forth in subsection (b) for the budget year.
    ``(b) Total Spending Limits.--
            ``(1) fiscal year 2013: 21.7 percent;
            ``(2) fiscal year 2014: 20.8 percent;
            ``(3) fiscal year 2015: 20.2 percent;
            ``(4) fiscal year 2016: 20.1 percent;
            ``(5) fiscal year 2017: 19.9 percent;
            ``(6) fiscal year 2018: 19.7 percent;
            ``(7) fiscal year 2019: 19.9 percent;
            ``(8) fiscal year 2020: 19.9 percent; and
            ``(9) fiscal year 2021: 19.9 percent;
of the current projected gross domestic product of the United States 
for the budget year.''.
    (b) Definitions.--Section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (as amended by section 101) is 
further amended by adding at the end the following new paragraph:
            ``(25) The term `total spending' means all outlays of the 
        Government, including those from off-budget entities.''.
    (c) Conforming Amendment.--The table of contents set forth in 
250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 
is amended by inserting after the item relating to section 252 the 
following new item:

``Sec. 252A. Total spending limits.''.

SEC. 103. DEFICIT LIMITS.

    (a) Deficit Limits.--Section 253 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended to read as follows:

``SEC. 253. DEFICIT LIMITS.

    ``(a) Deficit Projections.--
            ``(1) Deficit amounts.--For the current fiscal year and 
        each subsequent ten fiscal years:
                    ``(A) OMB shall prepare a report comparing 
                projected total deficits and the deficit limits in 
                subsection (c), and include such report in the budget 
                as submitted by the President annually under section 
                1105(a) of title 31, United States Code.
                    ``(B) CBO shall prepare a report comparing 
                projected total deficit amounts and the deficit limits 
                in subsection (c) and include such report in the CBO 
                annual baseline and reestimate of the President's 
                budget.
            ``(2) Inclusion in spending reduction orders.--Reports 
        prepared pursuant to subsection (a) shall be included in the 
        spending reduction report set forth in subsection (b).
    ``(b) Sequestration.--(1) Within 15 calendar days after Congress 
adjourns to end a session and on the same day as a spending reduction 
ordered under sections 251, 251A, 252, and 252A, but after any spending 
reduction required by section 251, 251A, 252, or 252A, there shall be a 
sequestration to eliminate any excess deficit.
    ``(2) The amount required to be sequestered in a fiscal year under 
paragraph (1) shall be obtained from non-exempt direct spending and 
discretionary spending accounts. Each account shall be reduced by the 
uniform percentage necessary to achieve the required reduction in the 
deficit so as not to exceed the deficit limit for that fiscal year.
    ``(c) Deficit Limits.--In this section, the term `deficit limit' 
means an amount that equals with respect to--
            ``(1) fiscal year 2013: 4.3 percent;
            ``(2) fiscal year 2014: 2.8 percent;
            ``(3) fiscal year 2015: 2.4 percent;
            ``(4) fiscal year 2016: 2.5 percent;
            ``(5) fiscal year 2017: 2.0 percent;
            ``(6) fiscal year 2018: 1.8 percent;
            ``(7) fiscal year 2019: 1.9 percent;
            ``(8) fiscal year 2020: 1.8 percent; and
            ``(9) fiscal year 2021: 1.6 percent;
of the current projected gross domestic product of the United States 
for the budget year.''.
    (b) Conforming Amendment.--The item relating to section 253 in the 
table of contents set forth in section 250(a) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended to read as 
follows:

``Sec. 253. Deficit limits.''.

SEC. 104. REPEAL OF STATUTORY PAYGO.

    The Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 931 note) is 
repealed.

SEC. 105. REPORTS AND ORDERS.

    Section 254 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) in subsection (c), by repealing paragraph (1) and 
        inserting the following new paragraph:
            ``(1) Reporting requirement.--On the dates specified in 
        subsection (a), OMB and CBO shall issue a preview report 
        regarding discretionary, direct, total, and deficit 
        sequestration based on laws enacted through those dates.'';
            (2) in subsection (c), by repealing paragraph (3) and 
        inserting the following new paragraph:
            ``(3) Direct spending sequestration reports.--The preview 
        report shall set forth for the budget year estimates for each 
        of the following:
                    ``(A) The amount of any excess direct spending for 
                Medicare, for Medicaid and other health-related 
                spending, and for all other direct spending.
                    ``(B) The sequestration percentage or percentages 
                necessary to reduce any direct spending in accounts for 
                Medicare, for Medicaid and other health-related 
                spending, and for all other direct spending, as 
                applicable.'';
            (3) in subsection (c), by repealing paragraph (4), by 
        redesignating paragraph (5) as paragraph (6), and by inserting 
        the following new paragraphs:
            ``(4) Total spending sequestration reports.--The preview 
        report shall set forth for the budget year estimates for each 
        of the following:
                    ``(A) The amount of the current projected gross 
                domestic product of the United States.
                    ``(B) Estimated total spending.
                    ``(C) The amount by which the total spending 
                exceeds the total spending limit.
                    ``(D) The sequestration percentage necessary to 
                eliminate any excess total spending.
            ``(5) Deficit sequestration reports.--The preview report 
        shall set forth for the budget year estimates for each of the 
        following:
                    ``(A) The amount of the projected gross domestic 
                product of the United States.
                    ``(B) The estimated deficit.
                    ``(C) The amount by which the estimated deficit 
                exceeds the deficit limit.
                    ``(D) The sequestration percentage necessary to 
                eliminate any excess deficit spending.'';
            (4) in subsection (f)(3), by amending the side heading and 
        the first sentence to read as follows: ``Direct, total, and 
        deficit sequestration reports.--The final report shall contain 
        all the information required in the direct, total, and deficit 
        sequestration preview reports. The final report shall also 
        include any net increase or decrease in the current year 
        resulting from all OMB estimates for the current year of direct 
        spending that were not reflected in the final OMB sequestration 
        report for the current year.'';
            (5) in subsection (f), by amending paragraph (4) to read as 
        follows:
            ``(4) Explanation of differences.--The OMB report shall 
        explain any material differences between OMB and CBO estimates 
        in any comparable reports.''; and
            (6) in subsection (g), by striking ``(f)(4)'' and inserting 
        ``(f)(5)''.

SEC. 106. EXEMPT PROGRAMS AND ACTIVITIES; SPECIAL SEQUESTRATION RULES.

    Sections 255 and 256 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 are amended to read as follows:

``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.

    ``(a) Exempt Programs and Activities.--The following shall be 
exempt from reduction under any order issued under this part:
            ``(1) Payments for net interest.
            ``(2) Benefits payable under the old-age, survivors, and 
        disability insurance program established under title II of the 
        Social Security Act.
            ``(3) Compensation, pensions, and benefits provided to 
        veterans defined as direct spending payable by the Department 
        of Veterans Affairs.
            ``(4) Obligated balances of budget authority carried over 
        from prior fiscal years.
            ``(5) Any obligations of the Federal Government required to 
        be paid under the United States Constitution or legally 
        contractual obligations.
            ``(6) Claims, Judgments, and Relief Acts (20-1895-0-1-808).
            ``(7) Intragovernmental transfers.
    ``(b) Optional Exemption of Military Personnel.--
            ``(1) In general.--The President may, with respect to any 
        military personnel account, exempt that account from 
        sequestration or provide for a lower uniform percentage 
        reduction than would otherwise apply.
            ``(2) Limitation.--The President may not use the authority 
        provided by paragraph (1) unless the President notifies the 
        Congress of the manner in which such authority will be 
        exercised on or before the date specified in section 254(a) for 
        the budget year.

``SEC. 256. GENERAL AND SPECIAL SEQUESTRATION RULES.

    ``(a) Limitations.--(1) No direct spending program that OMB 
estimates for the budget year is growing at a rate that exceeds the 
estimated rate of growth of the consumer price index for that year 
shall be subject to a spending reduction of more than four percent of 
its budgetary resources.
    ``(2) No direct spending program that OMB estimates for the budget 
year is growing at a rate that is equal to or less than the consumer 
price index for that year shall be subject to a spending reduction.
    ``(b) Student Loans.--For all student loans under part B or D of 
title IV of the Higher Education Act of 1965 made during the period 
when a sequestration order under section 254 is in effect as required 
by section 252, 252A, or 253, origination fees under sections 438(c)(2) 
and (6) and 455(c) and loan processing and issuance fees under section 
428(f)(1)(A)(ii) of that Act shall each be increased by the uniform 
percentage specified in that sequestration order, and, for student 
loans originated during the period of the sequestration accruing during 
the period of the sequestration shall be reduced by the uniform 
percentage specified in that sequestration order.
    ``(c) Special Rules for Medicare Program.--
            ``(1) Calculation of reduction in payment amounts.--To 
        achieve the total percentage reduction in those programs 
        required by section 252, 252A, or 253, subject to paragraph 
        (2), and notwithstanding section 710 of the Social Security 
        Act, OMB shall determine, and the applicable Presidential order 
        under section 254 shall implement, the percentage reduction 
        that shall apply, with respect to the health insurance programs 
        under title XVIII of the Social Security Act--
                    ``(A) in the case of parts A and B of such title, 
                to individual payments for services furnished during 
                the one-year period beginning on the first day of the 
                first month beginning after the date the order is 
                issued (or, if later, the date specified in paragraph 
                (4)); and
                    ``(B) in the case of parts C and D, to monthly 
                payments under contracts under such parts for the same 
                one-year period;
        such that the reduction made in payments under that order shall 
        achieve the required total percentage reduction in those 
        payments for that period.
            ``(2) Uniform reduction rate; maximum permissible 
        reduction.--Reductions in payments for programs and activities 
        under such title XVIII pursuant to a sequestration order under 
        section 254 shall be at a uniform rate across all such programs 
        and activities subject to such order.
            ``(3) Timing of application of reductions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if a reduction is made under 
                paragraph (1) in payment amounts pursuant to a 
                sequestration order, the reduction shall be applied to 
                payment for services furnished during the effective 
                period of the order. For purposes of the previous 
                sentence, in the case of inpatient services furnished 
                for an individual, the services shall be considered to 
                be furnished on the date of the individual's discharge 
                from the inpatient facility.
                    ``(B) Payment on the basis of cost reporting 
                periods.--In the case in which payment for services of 
                a provider of services is made under title XVIII of the 
                Social Security Act on a basis relating to the 
                reasonable cost incurred for the services during a cost 
                reporting period of the provider, if a reduction is 
                made under paragraph (1) in payment amounts pursuant to 
                a sequestration order, the reduction shall be applied 
                to payment for costs for such services incurred at any 
                time during each cost reporting period of the provider 
                any part of which occurs during the effective period of 
                the order, but only (for each such cost reporting 
                period) in the same proportion as the fraction of the 
                cost reporting period that occurs during the effective 
                period of the order.
            ``(4) Timing of subsequent sequestration order.--A 
        sequestration order required by section 252, 252A, or 253 with 
        respect to programs under such title XVIII shall not take 
        effect until the first month beginning after the end of the 
        effective period of any prior sequestration order with respect 
        to such programs, as determined in accordance with paragraph 
        (1).
            ``(5) No increase in beneficiary charges in assignment-
        related cases.--If a reduction in payment amounts is made under 
        paragraph (1) for services for which payment under part B of 
        title XVIII of the Social Security Act is made on the basis of 
        an assignment described in section 1842(b)(3)(B)(ii), in 
        accordance with section 1842(b)(6)(B), or under the procedure 
        described in section 1870(f)(1), of such Act, the person 
        furnishing the services shall be considered to have accepted 
        payment of the reasonable charge for the services, less any 
        reduction in payment amount made pursuant to a sequestration 
        order, as payment in full.
            ``(6) Sequestration disregarded in computing payment 
        amounts.--The Secretary of Health and Human Services shall not 
        take into account any reductions in payment amounts which have 
        been or may be effected under this part, for purposes of 
        computing any adjustments to payment rates under such title 
        XVIII, specifically including--
                    ``(A) the part C growth percentage under section 
                1853(c)(6);
                    ``(B) the part D annual growth rate under section 
                1860D-2(b)(6); and
                    ``(C) application of risk corridors to part D 
                payment rates under section 1860D-15(e).
    ``(d) Effects of Sequestration.--The effects of sequestration shall 
be as follows:
            ``(1) Budgetary resources sequestered from any account 
        shall be permanently cancelled, except as provided in paragraph 
        (6).
            ``(2) Except as otherwise provided, the same percentage 
        sequestration shall apply to all programs, projects, and 
        activities within a budget account (with programs, projects, 
        and activities as delineated in the appropriation Act or 
        accompanying report for the relevant fiscal year covering that 
        account, or for accounts not included in appropriation Acts, as 
        delineated in the most recently submitted President's budget).
            ``(3) Administrative regulations or similar actions 
        implementing a sequestration shall be made within 120 days of 
        the sequestration order. To the extent that formula allocations 
        differ at different levels of budgetary resources within an 
        account, program, project, or activity, the sequestration shall 
        be interpreted as producing a lower total appropriation, with 
        the remaining amount of the appropriation being obligated in a 
        manner consistent with program allocation formulas in 
        substantive law.
            ``(4) Except as otherwise provided, obligations in 
        sequestered accounts shall be reduced only in the fiscal year 
        in which a sequester occurs.
            ``(5) If an automatic spending increase is sequestered, the 
        increase (in the applicable index) that was disregarded as a 
        result of that sequestration shall not be taken into account in 
        any subsequent fiscal year.
            ``(6) Budgetary resources sequestered in revolving, trust, 
        and special fund accounts and offsetting collections 
        sequestered in appropriation accounts shall not be available 
        for obligation during the fiscal year in which the 
        sequestration occurs, but shall be available in subsequent 
        years to the extent otherwise provided in law.
    ``(e) Commodity Credit Corporation.--
            ``(1) Powers and authorities of the commodity credit 
        corporation.--This title shall not restrict the Commodity 
        Credit Corporation in the discharge of its authority and 
        responsibility as a corporation to buy and sell commodities in 
        world trade, to use the proceeds as a revolving fund to meet 
        other obligations and otherwise operate as a corporation, the 
        purpose for which it was created.
            ``(2) Reduction in payments made under contracts.--(A) Loan 
        eligibility under any contract entered into with a person by 
        the Commodity Credit Corporation prior to the time an order has 
        been issued under section 254 shall not be reduced by an order 
        subsequently issued. Subject to subparagraph (B), after an 
        order is issued under such section for a fiscal year, any cash 
        payments for loans or loan deficiencies made by the Commodity 
        Credit Corporation shall be subject to reduction under the 
        order.
            ``(B) Each loan contract entered into with producers or 
        producer cooperatives with respect to a particular crop of a 
        commodity and subject to reduction under subparagraph (A) shall 
        be reduced in accordance with the same terms and conditions. If 
        some, but not all, contracts applicable to a crop of a 
        commodity have been entered into prior to the issuance of an 
        order under section 254, the order shall provide that the 
        necessary reduction in payments under contracts applicable to 
        the commodity be uniformly applied to all contracts for the 
        next succeeding crop of the commodity, under the authority 
        provided in paragraph (3).
            ``(3) Delayed reduction in outlays permissible.--
        Notwithstanding any other provision of this title, if an order 
        under section 254 is issued with respect to a fiscal year, any 
        reduction under the order applicable to contracts described in 
        paragraph (1) may provide for reductions in outlays for the 
        account involved to occur in the fiscal year following the 
        fiscal year to which the order applies.
            ``(4) Uniform percentage rate of reduction and other 
        limitations.--All reductions described in paragraph (2) 
        required to be made in connection with an order issued under 
        section 254 with respect to a fiscal year shall be made so as 
        to ensure that outlays for each program, project, activity, or 
        account involved are reduced by a percentage rate that is 
        uniform for all such programs, projects, activities, and 
        accounts, and may not be made so as to achieve a percentage 
        rate of reduction in any such item exceeding the rate specified 
        in the order.
            ``(5) Dairy program.--Notwithstanding any other provision 
        of this subsection, as the sole means of achieving any 
        reduction in outlays under the milk price support program, the 
        Secretary of Agriculture shall provide for a reduction to be 
        made in the price received by producers for all milk produced 
        in the United States and marketed by producers for commercial 
        use. That price reduction (measured in cents per hundred weight 
        of milk marketed) shall occur under section 201(d)(2)(A) of the 
        Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin 
        on the day any sequestration order is issued under section 254, 
        and shall not exceed the aggregate amount of the reduction in 
        outlays under the milk price support program that otherwise 
        would have been achieved by reducing payments for the purchase 
        of milk or the products of milk under this subsection during 
        the applicable fiscal year.
            ``(6) Certain authority not to be limited.--Nothing in this 
        joint resolution shall limit or reduce, in any way, any 
        appropriation that provides the Commodity Credit Corporation 
        with budget authority to cover the Corporation's net realized 
        losses.''.

SEC. 107. ADJUSTMENTS FOR CHANGES IN DIRECT SPENDING.

    Section 251(b)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Changes in direct spending programs.--If an 
                appropriation for the budget year causes a change in 
                direct spending in any outyear, then there shall be an 
                appropriate adjustment for that outyear for the 
                discretionary spending limit under this section and the 
                direct spending limit under section 252.''.

              TITLE II--BUDGETING FOR EMERGENCIES AND WAR

SEC. 201. ALLOCATIONS FOR THE GLOBAL WAR ON TERRORISM.

    Section 302(a)(5) of the Congressional Budget Act of 1974 (2 U.S.C. 
633) is amended to read as follows:
            ``(5) Global war on terrorism (gwot).--The joint 
        explanatory statement accompanying a conference report on a 
        concurrent resolution on the budget for a fiscal year may 
        include an allocation, consistent with the resolution 
        recommended in the conference report, of the level for the 
        global war on terrorism (GWOT) for that fiscal year.''.

SEC. 202. EMERGENCY AND GLOBAL WAR ON TERRORISM (GWOT) ADJUSTMENT 
              PROCEDURES.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
is amended by adding at the end the following new section:

             ``emergencies; global war on terrorism (gwot)

    ``Sec. 318.  (a) Adjustment Procedures.--Before any adjustment is 
made pursuant to this section for any bill or joint resolution, or 
conference report thereon, that designates a provision an emergency or 
for the global war on terrorism (GWOT), the enactment of which would 
cause an increase in budget authority or decrease in revenue:
            ``(1) The chairman of the Committee on the Budget of the 
        House of Representatives or the Senate shall convene a meeting 
        of that committee, where it shall be in order, subject to the 
        terms set forth in this section, for one motion described in 
        paragraph (2) to be made to authorize the chairman to make 
        adjustments above the applicable allocation set forth in the 
        most recently enacted concurrent resolution on the budget 
        pursuant to the requirement of section 302(a)(5) or (6).
            ``(2) The motion referred to in paragraph (1) shall be in 
        the following form: `I move that the chairman of the Committee 
        on the Budget be authorized to adjust the allocations and 
        aggregates set forth in the concurrent resolution on the budget 
        by the following amount: $____ for fiscal year ___.', with the 
        blanks being filled in with an amount and fiscal year 
        determined by the chairman of the Committee on the Budget of 
        the House of Representatives or the Senate.
            ``(3) The motion set forth in paragraph (2) shall be open 
        for debate and amendment, but any amendment offered thereto is 
        only in order if limited to changing an amount in the motion.
    ``(b) Alternate Adjustment Procedures for Emergencies and the 
Global War on Terrorism.--The chairman of the Committee on the Budget 
of the House of Representatives or the Senate shall make any 
adjustments he deems necessary under this section if he determines such 
adjustments are essential to respond to an urgent and imminent need.
    ``(c) Legislation Providing for an Adjustment of Discretionary 
Caps.--(1) If any committee of the House of Representatives or the 
Senate reports any bill or resolution which provides funding designated 
for emergencies or for the global war on terrorism, such bill or 
resolution shall then be referred to the Committee on the Budget of the 
House of Representatives or the Senate, as the case may be, with 
instructions to report it, with an amendment to section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 for an 
appropriate adjustment for the applicable fiscal year, within 15 
calendar days (not counting any day on which that House is not in 
session) beginning with the day following the day on which it is 
referred. If the Committee on the Budget of either House fails to 
report a bill or resolution referred to it under this paragraph within 
such 15-day period, the committee shall automatically be discharged 
from further consideration of such bill or resolution and such bill or 
resolution shall be placed on the appropriate calendar.
    ``(2) The Committee on the Budget of each House shall have 
jurisdiction to report any bill or resolution referred to it under 
paragraph (1) with an amendment which changes the discretionary 
spending limit for the applicable fiscal year.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 317 the 
following new item:

``Sec. 318. Emergencies; global war on terrorism (GWOT).''.

SEC. 203. ELIMINATION OF EMERGENCY ADJUSTMENTS.

    Section 314 of the Congressional Budget Act of 1974 is amended by 
striking subsection (d) and redesignating subsection (e) as subsection 
(d).

SEC. 204. CONFORMING AMENDMENT TO THE BALANCED BUDGET AND EMERGENCY 
              DEFICIT CONTROL ACT OF 1985.

    Sections 251(b)(2)(A), 251(b)(2)(D), and 252(d)(4)(B) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 are repealed 
and section 251(b)(2) is amended by redesignating subparagraphs (B) and 
(C) as subparagraphs (A) and (B), respectively.

                   TITLE III--ENFORCING CUT-AS-YOU-GO

SEC. 301. ENFORCING CUT-AS-YOU-GO.

    (a) Cut-As-You-Go Point of Order.--(1) Title III of the 
Congressional Budget Act of 1974 (as amended by section 201) is further 
amended by adding at the end the following new section:

                       ``enforcing cut-as-you-go

    ``Sec. 317.  (a) Point of Order.--(1) Except as provided in 
subsections (b) and (c), it shall not be in order in the House of 
Representatives or the Senate to consider a bill or joint resolution, 
or an amendment thereto or a conference report thereon, if the 
provisions of such measure have the net effect of increasing direct 
spending for the period of either--
            ``(A) the current year, the budget year, and the four 
        fiscal years following that budget year; or
            ``(B) the current year, the budget year, and the nine 
        fiscal years following that budget year.
    ``(2) For the purpose of this section, the terms `budget year' and 
`current year' have the meanings specified in section 250 of the 
Balanced Budget and Emergency Deficit Control Act of 1985, and the term 
`direct spending' includes provisions in appropriation Acts that make 
outyear changes to or restrictions on entitlement law or other direct 
spending contained in an appropriation Act.
    ``(b) Special Rule in the House.--If a bill or joint resolution, or 
an amendment thereto, is considered pursuant to a special order of the 
House of Representatives directing the Clerk to add as new matter at 
the end of such bill or joint resolution the entire text of a separate 
measure or measures as passed by the House of Representatives, the new 
matter proposed to be added shall be included in the evaluation under 
subsection (a) of the bill, joint resolution, or amendment.''.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
inserting after the item relating to section 318 the following new 
item:

``Sec. 317. Enforcing Cut-As-You-Go.''.
    (b) Repealer.--Clause 10 of rule XXI of the Rules of the House of 
Representatives is repealed.

                TITLE IV--SUPERMAJORITY POINTS OF ORDER

SEC. 401. SUPERMAJORITY POINTS OF ORDER.

    (a) Waivers.--Section 904(c) of the Congressional Budget Act of 
1974 is amended to read as follows:
    ``(c) Waivers.--Sections 301(i), 302(c), 302(f), 305(b)(2), 
305(c)(4), 306, 310(d)(2), 310(g), 311(a), 312(b), 312(c), 313, 314(e), 
317(a), 904(c), and 904(d) of this Act and section 258C(a)(5) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 may be waived 
or suspended in the Senate only by the affirmative vote of three-fifths 
of the Members, duly chosen and sworn.''.
    (b) Appeals.--Section 904(d) of the Congressional Budget Act of 
1974 is amended by repealing paragraphs (2) and (3) and by inserting 
after paragraph (1) the following new paragraph:
            ``(2) Appeals.--An affirmative vote of two-thirds of the 
        Members, duly chosen and sworn, shall be required in the Senate 
        to sustain an appeal of the ruling of the Chair on a point of 
        order raised under any section referred to in subsection 
        (c).''.
    (c) Expiration.--Subsection (e) of section 904 of the Congressional 
Budget Act of 1974 is repealed.
                                 <all>
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