I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Spending Control Act of 2011’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

TITLE I—SPENDING LIMITS AND DEFICIT CONTROL 


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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. 

1 TITLE I—SPENDING LIMITS AND 

2 DEFICIT CONTROL 

3 SEC. 101. DIRECT SPENDING LIMITS. 

4 (a) CONTROL OF DIRECT SPENDING.—Section 252 

5 of the Balanced Budget and Emergency Deficit Control 

6 Act of 1985 is amended to read as follows: 

7 ‘‘SEC. 252. DIRECT SPENDING LIMITS. 

8 ‘‘(a) DIRECT SPENDING LIMITS.—The total level of 

9 direct spending for each fiscal year set forth below is as 

10 follows: 

11 ‘‘(1) For fiscal year 2013— 

12 ‘‘(A) for Medicare, $515,001,000,000 in 

13 budget authority and the outlays flowing there14 from; 


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1 ‘‘(B) for Medicaid and other health-related 

2 spending, $293,611,000,000 in budget author3 ity and the outlays flowing therefrom; and 

4 ‘‘(C) for all other direct spending, 

5 $474,527,000,000 in budget authority and the 

6 outlays flowing therefrom. 

7 ‘‘(2) For fiscal year 2014— 

8 ‘‘(A) for Medicare, $545,303,000,000 in 

9 budget authority and the outlays flowing there10 from; 

11 ‘‘(B) for Medicaid and other health-related 

12 spending, $287,942,000,000 in budget author13 ity and the outlays flowing therefrom; and 

14 ‘‘(C) for all other direct spending, 

15 $431,870,000,000 in budget authority and the 

16 outlays flowing therefrom. 

17 ‘‘(3) For fiscal year 2015— 

18 ‘‘(A) for Medicare, $568,450,000,000 in 

19 budget authority and the outlays flowing there20 from; 

21 ‘‘(B) for Medicaid and other health-related 

22 spending, $276,890,000,000 in budget author23 ity and the outlays flowing therefrom; and 


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1 ‘‘(C) for all other direct spending, 

2 $401,509,000,000 in budget authority and the 

3 outlays flowing therefrom. 

4 ‘‘(4) For fiscal year 2016— 

5 ‘‘(A) for Medicare, $614,243,000,000 in 

6 budget authority and the outlays flowing there7 from; 

8 ‘‘(B) for Medicaid and other health-related 

9 spending, $270,287,000,000 in budget author10 ity and the outlays flowing therefrom; and 

11 ‘‘(C) for all other direct spending, 

12 $422,579,000,000 in budget authority and the 

13 outlays flowing therefrom. 

14 ‘‘(5) For fiscal year 2017— 

15 ‘‘(A) for Medicare, $633,169,000,000 in 

16 budget authority and the outlays flowing there17 from; 

18 ‘‘(B) for Medicaid and other health-related 

19 spending, $288,914,000,000 in budget author20 ity and the outlays flowing therefrom; and 

21 ‘‘(C) for all other direct spending, 

22 $414,028,000,000 in budget authority and the 

23 outlays flowing therefrom. 

24 ‘‘(6) For fiscal year 2018— 


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1 ‘‘(A) for Medicare, $652,180,000,000 in 

2 budget authority and the outlays flowing there3 from; 

4 ‘‘(B) for Medicaid and other health-related 

5 spending, $297,823,000,000 in budget author6 ity and the outlays flowing therefrom; and 

7 ‘‘(C) for all other direct spending, 

8 $412,225,000,000 in budget authority and the 

9 outlays flowing therefrom. 

10 ‘‘(7) For fiscal year 2019— 

11 ‘‘(A) for Medicare, $706,477,000,000 in 

12 budget authority and the outlays flowing there13 from; 

14 ‘‘(B) for Medicaid and other health-related 

15 spending, $318,508,000,000 in budget author16 ity and the outlays flowing therefrom; and 

17 ‘‘(C) for all other direct spending, 

18 $423,383,000,000 in budget authority and the 

19 outlays flowing therefrom. 

20 ‘‘(8) For fiscal year 2020— 

21 ‘‘(A) for Medicare, $753,235,000,000 in 

22 budget authority and the outlays flowing there23 from; 


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1 ‘‘(B) for Medicaid and other health-related 

2 spending, $341,284,000,000 in budget author3 ity and the outlays flowing therefrom; and 

4 ‘‘(C) for all other direct spending, 

5 $432,352,000,000 in budget authority and the 

6 outlays flowing therefrom. 

7 ‘‘(9) For fiscal year 2021— 

8 ‘‘(A) for Medicare, $803,952,000,000 in 

9 budget authority and the outlays flowing there10 from; 

11 ‘‘(B) for Medicaid and other health-related 

12 spending, $348,739,000,000 in budget author13 ity and the outlays flowing therefrom; and 

14 ‘‘(C) for all other direct spending, 

15 $440,804,000,000 in budget authority and the 

16 outlays flowing therefrom. 

17 ‘‘(b) SEQUESTRATION.—(1) Within 15 calendar days 

18 after Congress adjourns to end a session and on the same 

19 day as a sequestration under sections 251, 251A, 253, but 

20 after any sequestration required by section 251 and 251A 

21 and before sections 252A and 253, there shall be a seques22 tration to eliminate any direct spending in excess of the 

23 direct spending limits set forth in subsection (a), as appli24 cable, for the budget year. 


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1 ‘‘(2) The amount required to be sequestered in a fis2 cal year under paragraph (1)— 

3 ‘‘(A) for Medicare spending shall be obtained 

4 from non-exempt direct spending accounts for Medi5 care; 

6 ‘‘(B) for Medicaid and other health-related 

7 spending shall be obtained from non-exempt direct 

8 spending accounts for Medicaid and other health-re9 lated spending; and 

10 ‘‘(C) for all other direct spending shall be ob11 tained from non-exempt direct spending accounts. 

12 ‘‘(3) Each account referred to in subparagraph (A), 

13 (B), or (C) of paragraph (2) shall be reduced by the uni14 form percentage necessary to reduce any excess direct 

15 spending in accounts in that subparagraph to the applica16 ble level set forth in subsection (a), as applicable, for the 

17 budget year. 

18 ‘‘(c) SCOREKEEPING GUIDELINES.—OMB and CBO, 

19 after consultation with each other and the Committees on 

20 the Budget of the House of Representatives and the Sen21 ate, shall— 

22 ‘‘(1) determine common scorekeeping guide23 lines; and 

24 ‘‘(2) in conformance with such guidelines, pre25 pare estimates under this section’’. 


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1 (b) DEFINITIONS.—Section 250(c) of the Balanced 

2 Budget and Emergency Deficit Control Act of 1985 is 

3 amended by adding at the end the following new para4 graphs: 

5 ‘‘(22) The term ‘Medicare’ means programs 

6 within budget function 570. 

7 ‘‘(23) The term ‘Medicaid and other health-re8 lated spending’ means programs within budget func9 tion 550. 

10 ‘‘(24) The term ‘other direct spending’ means 

11 programs other than those within budget functions 

12 550 and 570, excluding Social Security and net in13 terest.’’. 

14 (c) CONFORMING AMENDMENT.—The item relating 

15 to section 252 in the table of contents set forth in 250(a) 

16 of the Balanced Budget and Emergency Deficit Control 

17 Act of 1985 is amended to read as follows: 

‘‘Sec. 252. Direct spending limits.’’. 

18 SEC. 102. TOTAL SPENDING LIMITS. 

19 (a) TOTAL SPENDING LIMITS.—The Balanced Budg20 et and Emergency Deficit Control Act of 1985 is amended 

21 by adding after section 252 the following new section: 

22 ‘‘SEC. 252A. TOTAL SPENDING LIMITS. 

23 ‘‘(a) SEQUESTRATION.—(1) Within 15 calendar days 

24 after Congress adjourns to end a session and on the same 

25 day as a spending reduction ordered under sections 251, 


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1 251A, 252, and 253, but after any spending reduction re2 quired by sections 251, 251A, and 252, and before section 

3 253, there shall be a sequestration of all non-exempt direct 

4 spending accounts and discretionary accounts to eliminate 

5 any total spending in excess of the total spending limits 

6 set forth in subsection (b) for the budget year. 

7 ‘‘(2) Each account referred to in paragraph (1) shall 

8 be reduced by the uniform percentage necessary to reduce 

9 total spending to the applicable level set forth in sub10 section (b) for the budget year. 

11 ‘‘(b) TOTAL SPENDING LIMITS.— 

12 ‘‘(1) fiscal year 2013: 21.7 percent; 

13 ‘‘(2) fiscal year 2014: 20.8 percent; 

14 ‘‘(3) fiscal year 2015: 20.2 percent; 

15 ‘‘(4) fiscal year 2016: 20.1 percent; 

16 ‘‘(5) fiscal year 2017: 19.9 percent; 

17 ‘‘(6) fiscal year 2018: 19.7 percent; 

18 ‘‘(7) fiscal year 2019: 19.9 percent; 

19 ‘‘(8) fiscal year 2020: 19.9 percent; and 

20 ‘‘(9) fiscal year 2021: 19.9 percent; 

21 of the current projected gross domestic product of the 

22 United States for the budget year.’’. 

23 (b) DEFINITIONS.—Section 250(c) of the Balanced 

24 Budget and Emergency Deficit Control Act of 1985 (as 


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1 amended by section 101) is further amended by adding 

2 at the end the following new paragraph: 

3 ‘‘(25) The term ‘total spending’ means all out4 lays of the Government, including those from off5 budget entities.’’. 

6 (c) CONFORMING AMENDMENT.—The table of con7 tents set forth in 250(a) of the Balanced Budget and 

8 Emergency Deficit Control Act of 1985 is amended by in9 serting after the item relating to section 252 the following 

10 new item: 

‘‘Sec. 252A. Total spending limits.’’. 

11 SEC. 103. DEFICIT LIMITS. 

12 (a) DEFICIT LIMITS.—Section 253 of the Balanced 

13 Budget and Emergency Deficit Control Act of 1985 is 

14 amended to read as follows: 

15 ‘‘SEC. 253. DEFICIT LIMITS. 

16 ‘‘(a) DEFICIT PROJECTIONS.— 

17 ‘‘(1) DEFICIT AMOUNTS.—For the current fis18 cal year and each subsequent ten fiscal years: 

19 ‘‘(A) OMB shall prepare a report com20 paring projected total deficits and the deficit 

21 limits in subsection (c), and include such report 

22 in the budget as submitted by the President an23 nually under section 1105(a) of title 31, United 

24 States Code. 


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1 ‘‘(B) CBO shall prepare a report com2 paring projected total deficit amounts and the 

3 deficit limits in subsection (c) and include such 

4 report in the CBO annual baseline and reesti5 mate of the President’s budget. 

6 ‘‘(2) INCLUSION IN SPENDING REDUCTION OR7 DERS.—Reports prepared pursuant to subsection (a) 

8 shall be included in the spending reduction report 

9 set forth in subsection (b). 

10 ‘‘(b) SEQUESTRATION.—(1) Within 15 calendar days 

11 after Congress adjourns to end a session and on the same 

12 day as a spending reduction ordered under sections 251, 

13 251A, 252, and 252A, but after any spending reduction 

14 required by section 251, 251A, 252, or 252A, there shall 

15 be a sequestration to eliminate any excess deficit. 

16 ‘‘(2) The amount required to be sequestered in a fis17 cal year under paragraph (1) shall be obtained from non18 exempt direct spending and discretionary spending ac19 counts. Each account shall be reduced by the uniform per20 centage necessary to achieve the required reduction in the 

21 deficit so as not to exceed the deficit limit for that fiscal 

22 year. 

23 ‘‘(c) DEFICIT LIMITS.—In this section, the term ‘def24 icit limit’ means an amount that equals with respect to— 

25 ‘‘(1) fiscal year 2013: 4.3 percent; 


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1 ‘‘(2) fiscal year 2014: 2.8 percent; 

2 ‘‘(3) fiscal year 2015: 2.4 percent; 

3 ‘‘(4) fiscal year 2016: 2.5 percent; 

4 ‘‘(5) fiscal year 2017: 2.0 percent; 

5 ‘‘(6) fiscal year 2018: 1.8 percent; 

6 ‘‘(7) fiscal year 2019: 1.9 percent; 

7 ‘‘(8) fiscal year 2020: 1.8 percent; and 

8 ‘‘(9) fiscal year 2021: 1.6 percent; 

9 of the current projected gross domestic product of the 

10 United States for the budget year.’’. 

11 (b) CONFORMING AMENDMENT.—The item relating 

12 to section 253 in the table of contents set forth in section 

13 250(a) of the Balanced Budget and Emergency Deficit 

14 Control Act of 1985 is amended to read as follows: 

‘‘Sec. 253. Deficit limits.’’. 

15 SEC. 104. REPEAL OF STATUTORY PAYGO. 

16 The Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 

17 931 note) is repealed. 

18 SEC. 105. REPORTS AND ORDERS. 

19 Section 254 of the Balanced Budget and Emergency 

20 Deficit Control Act of 1985 is amended— 

21 (1) in subsection (c), by repealing paragraph 

22 (1) and inserting the following new paragraph: 

23 ‘‘(1) REPORTING REQUIREMENT.—On the dates 

24 specified in subsection (a), OMB and CBO shall 

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1 rect, total, and deficit sequestration based on laws 

2 enacted through those dates.’’; 

3 (2) in subsection (c), by repealing paragraph 

4 (3) and inserting the following new paragraph: 

5 ‘‘(3) DIRECT SPENDING SEQUESTRATION RE6 PORTS.—The preview report shall set forth for the 

7 budget year estimates for each of the following: 

8 ‘‘(A) The amount of any excess direct 

9 spending for Medicare, for Medicaid and other 

10 health-related spending, and for all other direct 

11 spending. 

12 ‘‘(B) The sequestration percentage or per13 centages necessary to reduce any direct spend14 ing in accounts for Medicare, for Medicaid and 

15 other health-related spending, and for all other 

16 direct spending, as applicable.’’; 

17 (3) in subsection (c), by repealing paragraph 

18 (4), by redesignating paragraph (5) as paragraph 

19 (6), and by inserting the following new paragraphs: 

20 ‘‘(4) TOTAL SPENDING SEQUESTRATION RE21 PORTS.—The preview report shall set forth for the 

22 budget year estimates for each of the following: 

23 ‘‘(A) The amount of the current projected 

24 gross domestic product of the United States. 

25 ‘‘(B) Estimated total spending. 


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1 ‘‘(C) The amount by which the total spend2 ing exceeds the total spending limit. 

3 ‘‘(D) The sequestration percentage nec4 essary to eliminate any excess total spending. 

5 ‘‘(5) DEFICIT SEQUESTRATION REPORTS.—The 

6 preview report shall set forth for the budget year es7 timates for each of the following: 

8 ‘‘(A) The amount of the projected gross 

9 domestic product of the United States. 

10 ‘‘(B) The estimated deficit. 

11 ‘‘(C) The amount by which the estimated 

12 deficit exceeds the deficit limit. 

13 ‘‘(D) The sequestration percentage nec14 essary to eliminate any excess deficit spend15 ing.’’; 

16 (4) in subsection (f)(3), by amending the side 

17 heading and the first sentence to read as follows: 

18 ‘‘DIRECT, TOTAL, AND DEFICIT SEQUESTRATION RE19 PORTS.—The final report shall contain all the infor20 mation required in the direct, total, and deficit se21 questration preview reports. The final report shall 

22 also include any net increase or decrease in the cur23 rent year resulting from all OMB estimates for the 

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1 flected in the final OMB sequestration report for the 

2 current year.’’; 

3 (5) in subsection (f), by amending paragraph 

4 (4) to read as follows: 

5 ‘‘(4) EXPLANATION OF DIFFERENCES.—The 

6 OMB report shall explain any material differences 

7 between OMB and CBO estimates in any com8 parable reports.’’; and 

9 (6) in subsection (g), by striking ‘‘(f)(4)’’ and 

10 inserting ‘‘(f)(5)’’. 

11 SEC. 106. EXEMPT PROGRAMS AND ACTIVITIES; SPECIAL 

12 SEQUESTRATION RULES. 

13 Sections 255 and 256 of the Balanced Budget and 

14 Emergency Deficit Control Act of 1985 are amended to 

15 read as follows: 

16 ‘‘SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES. 

17 ‘‘(a) EXEMPT PROGRAMS AND ACTIVITIES.—The fol18 lowing shall be exempt from reduction under any order 

19 issued under this part: 

20 ‘‘(1) Payments for net interest. 

21 ‘‘(2) Benefits payable under the old-age, sur22 vivors, and disability insurance program established 

23 under title II of the Social Security Act. 


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1 ‘‘(3) Compensation, pensions, and benefits pro2 vided to veterans defined as direct spending payable 

3 by the Department of Veterans Affairs. 

4 ‘‘(4) Obligated balances of budget authority 

5 carried over from prior fiscal years. 

6 ‘‘(5) Any obligations of the Federal Government 

7 required to be paid under the United States Con8 stitution or legally contractual obligations. 

9 ‘‘(6) Claims, Judgments, and Relief Acts (20– 

10 1895–0–1–808). 

11 ‘‘(7) Intragovernmental transfers. 

12 ‘‘(b) OPTIONAL EXEMPTION OF MILITARY PER13 SONNEL.— 

14 ‘‘(1) IN GENERAL.—The President may, with 

15 respect to any military personnel account, exempt 

16 that account from sequestration or provide for a 

17 lower uniform percentage reduction than would oth18 erwise apply. 

19 ‘‘(2) LIMITATION.—The President may not use 

20 the authority provided by paragraph (1) unless the 

21 President notifies the Congress of the manner in 

22 which such authority will be exercised on or before 

23 the date specified in section 254(a) for the budget 

24 year. 


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1 ‘‘SEC. 256. GENERAL AND SPECIAL SEQUESTRATION RULES. 

2 ‘‘(a) LIMITATIONS.—(1) No direct spending program 

3 that OMB estimates for the budget year is growing at a 

4 rate that exceeds the estimated rate of growth of the con5 sumer price index for that year shall be subject to a spend6 ing reduction of more than four percent of its budgetary 

7 resources. 

8 ‘‘(2) No direct spending program that OMB esti9 mates for the budget year is growing at a rate that is 

10 equal to or less than the consumer price index for that 

11 year shall be subject to a spending reduction. 

12 ‘‘(b) STUDENT LOANS.—For all student loans under 

13 part B or D of title IV of the Higher Education Act of 

14 1965 made during the period when a sequestration order 

15 under section 254 is in effect as required by section 252, 

16 252A, or 253, origination fees under sections 438(c)(2) 

17 and (6) and 455(c) and loan processing and issuance fees 

18 under section 428(f)(1)(A)(ii) of that Act shall each be 

19 increased by the uniform percentage specified in that se20 questration order, and, for student loans originated during 

21 the period of the sequestration accruing during the period 

22 of the sequestration shall be reduced by the uniform per23 centage specified in that sequestration order. 

24 ‘‘(c) SPECIAL RULES FOR MEDICARE PROGRAM.— 

25 ‘‘(1) CALCULATION OF REDUCTION IN PAYMENT

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1 tion in those programs required by section 252, 

2 252A, or 253, subject to paragraph (2), and not3 withstanding section 710 of the Social Security Act, 

4 OMB shall determine, and the applicable Presi5 dential order under section 254 shall implement, the 

6 percentage reduction that shall apply, with respect 

7 to the health insurance programs under title XVIII 

8 of the Social Security Act— 

9 ‘‘(A) in the case of parts A and B of such 

10 title, to individual payments for services fur11 nished during the one-year period beginning on 

12 the first day of the first month beginning after 

13 the date the order is issued (or, if later, the 

14 date specified in paragraph (4)); and 

15 ‘‘(B) in the case of parts C and D, to 

16 monthly payments under contracts under such 

17 parts for the same one-year period; 

18 such that the reduction made in payments under 

19 that order shall achieve the required total percentage 

20 reduction in those payments for that period. 

21 ‘‘(2) UNIFORM REDUCTION RATE; MAXIMUM

22 PERMISSIBLE REDUCTION.—Reductions in payments 

23 for programs and activities under such title XVIII 

24 pursuant to a sequestration order under section 254 


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1 shall be at a uniform rate across all such programs 

2 and activities subject to such order. 

3 ‘‘(3) TIMING OF APPLICATION OF REDUC4 TIONS.— 

5 ‘‘(A) IN GENERAL.—Except as provided in 

6 subparagraph (B), if a reduction is made under 

7 paragraph (1) in payment amounts pursuant to 

8 a sequestration order, the reduction shall be ap9 plied to payment for services furnished during 

10 the effective period of the order. For purposes 

11 of the previous sentence, in the case of inpa12 tient services furnished for an individual, the 

13 services shall be considered to be furnished on 

14 the date of the individual’s discharge from the 

15 inpatient facility. 

16 ‘‘(B) PAYMENT ON THE BASIS OF COST

17 REPORTING PERIODS.—In the case in which 

18 payment for services of a provider of services is 

19 made under title XVIII of the Social Security 

20 Act on a basis relating to the reasonable cost 

21 incurred for the services during a cost reporting 

22 period of the provider, if a reduction is made 

23 under paragraph (1) in payment amounts pur24 suant to a sequestration order, the reduction 

25 shall be applied to payment for costs for such 


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1 services incurred at any time during each cost 

2 reporting period of the provider any part of 

3 which occurs during the effective period of the 

4 order, but only (for each such cost reporting pe5 riod) in the same proportion as the fraction of 

6 the cost reporting period that occurs during the 

7 effective period of the order. 

8 ‘‘(4) TIMING OF SUBSEQUENT SEQUESTRATION

9 ORDER.—A sequestration order required by section 

10 252, 252A, or 253 with respect to programs under 

11 such title XVIII shall not take effect until the first 

12 month beginning after the end of the effective period 

13 of any prior sequestration order with respect to such 

14 programs, as determined in accordance with para15 graph (1). 

16 ‘‘(5) NO INCREASE IN BENEFICIARY CHARGES

17 IN ASSIGNMENT-RELATED CASES.—If a reduction in 

18 payment amounts is made under paragraph (1) for 

19 services for which payment under part B of title 

20 XVIII of the Social Security Act is made on the 

21 basis of an assignment described in section 

22 1842(b)(3)(B)(ii), in accordance with section 

23 1842(b)(6)(B), or under the procedure described in 

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1 cepted payment of the reasonable charge for the 

2 services, less any reduction in payment amount 

3 made pursuant to a sequestration order, as payment 

4 in full. 

5 ‘‘(6) SEQUESTRATION DISREGARDED IN COM6 PUTING PAYMENT AMOUNTS.—The Secretary of 

7 Health and Human Services shall not take into ac8 count any reductions in payment amounts which 

9 have been or may be effected under this part, for 

10 purposes of computing any adjustments to payment 

11 rates under such title XVIII, specifically including— 

12 ‘‘(A) the part C growth percentage under 

13 section 1853(c)(6); 

14 ‘‘(B) the part D annual growth rate under 

15 section 1860D–2(b)(6); and 

16 ‘‘(C) application of risk corridors to part D 

17 payment rates under section 1860D–15(e). 

18 ‘‘(d) EFFECTS OF SEQUESTRATION.—The effects of 

19 sequestration shall be as follows: 

20 ‘‘(1) Budgetary resources sequestered from any 

21 account shall be permanently cancelled, except as 

22 provided in paragraph (6). 

23 ‘‘(2) Except as otherwise provided, the same 

24 percentage sequestration shall apply to all programs, 

25 projects, and activities within a budget account (with 


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1 programs, projects, and activities as delineated in 

2 the appropriation Act or accompanying report for 

3 the relevant fiscal year covering that account, or for 

4 accounts not included in appropriation Acts, as de5 lineated in the most recently submitted President’s 

6 budget). 

7 ‘‘(3) Administrative regulations or similar ac8 tions implementing a sequestration shall be made 

9 within 120 days of the sequestration order. To the 

10 extent that formula allocations differ at different 

11 levels of budgetary resources within an account, pro12 gram, project, or activity, the sequestration shall be 

13 interpreted as producing a lower total appropriation, 

14 with the remaining amount of the appropriation 

15 being obligated in a manner consistent with program 

16 allocation formulas in substantive law. 

17 ‘‘(4) Except as otherwise provided, obligations 

18 in sequestered accounts shall be reduced only in the 

19 fiscal year in which a sequester occurs. 

20 ‘‘(5) If an automatic spending increase is se21 questered, the increase (in the applicable index) that 

22 was disregarded as a result of that sequestration 

23 shall not be taken into account in any subsequent 

24 fiscal year. 


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1 ‘‘(6) Budgetary resources sequestered in revolv2 ing, trust, and special fund accounts and offsetting 

3 collections sequestered in appropriation accounts 

4 shall not be available for obligation during the fiscal 

5 year in which the sequestration occurs, but shall be 

6 available in subsequent years to the extent otherwise 

7 provided in law. 

8 ‘‘(e) COMMODITY CREDIT CORPORATION.— 

9 ‘‘(1) POWERS AND AUTHORITIES OF THE COM10 MODITY CREDIT CORPORATION.—This title shall not 

11 restrict the Commodity Credit Corporation in the 

12 discharge of its authority and responsibility as a cor13 poration to buy and sell commodities in world trade, 

14 to use the proceeds as a revolving fund to meet 

15 other obligations and otherwise operate as a corpora16 tion, the purpose for which it was created. 

17 ‘‘(2) REDUCTION IN PAYMENTS MADE UNDER

18 CONTRACTS.—(A) Loan eligibility under any con19 tract entered into with a person by the Commodity 

20 Credit Corporation prior to the time an order has 

21 been issued under section 254 shall not be reduced 

22 by an order subsequently issued. Subject to subpara23 graph (B), after an order is issued under such sec24 tion for a fiscal year, any cash payments for loans 

25 or loan deficiencies made by the Commodity Credit 


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1 Corporation shall be subject to reduction under the 

2 order. 

3 ‘‘(B) Each loan contract entered into with pro4 ducers or producer cooperatives with respect to a 

5 particular crop of a commodity and subject to reduc6 tion under subparagraph (A) shall be reduced in ac7 cordance with the same terms and conditions. If 

8 some, but not all, contracts applicable to a crop of 

9 a commodity have been entered into prior to the 

10 issuance of an order under section 254, the order 

11 shall provide that the necessary reduction in pay12 ments under contracts applicable to the commodity 

13 be uniformly applied to all contracts for the next 

14 succeeding crop of the commodity, under the author15 ity provided in paragraph (3). 

16 ‘‘(3) DELAYED REDUCTION IN OUTLAYS PER17 MISSIBLE.—Notwithstanding any other provision of 

18 this title, if an order under section 254 is issued 

19 with respect to a fiscal year, any reduction under the 

20 order applicable to contracts described in paragraph 

21 (1) may provide for reductions in outlays for the ac22 count involved to occur in the fiscal year following 

23 the fiscal year to which the order applies. 

24 ‘‘(4) UNIFORM PERCENTAGE RATE OF REDUC25 TION AND OTHER LIMITATIONS.—All reductions deVerDate Mar 15 2010 22:32 Dec 12, 2011 Jkt 019200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H3576.IH H3576

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1 scribed in paragraph (2) required to be made in con2 nection with an order issued under section 254 with 

3 respect to a fiscal year shall be made so as to ensure 

4 that outlays for each program, project, activity, or 

5 account involved are reduced by a percentage rate 

6 that is uniform for all such programs, projects, ac7 tivities, and accounts, and may not be made so as 

8 to achieve a percentage rate of reduction in any such 

9 item exceeding the rate specified in the order. 

10 ‘‘(5) DAIRY PROGRAM.—Notwithstanding any 

11 other provision of this subsection, as the sole means 

12 of achieving any reduction in outlays under the milk 

13 price support program, the Secretary of Agriculture 

14 shall provide for a reduction to be made in the price 

15 received by producers for all milk produced in the 

16 United States and marketed by producers for com17 mercial use. That price reduction (measured in cents 

18 per hundred weight of milk marketed) shall occur 

19 under section 201(d)(2)(A) of the Agricultural Act 

20 of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin on the 

21 day any sequestration order is issued under section 

22 254, and shall not exceed the aggregate amount of 

23 the reduction in outlays under the milk price sup24 port program that otherwise would have been 

25 achieved by reducing payments for the purchase of 


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1 milk or the products of milk under this subsection 

2 during the applicable fiscal year. 

3 ‘‘(6) CERTAIN AUTHORITY NOT TO BE LIM4 ITED.—Nothing in this joint resolution shall limit or 

5 reduce, in any way, any appropriation that provides 

6 the Commodity Credit Corporation with budget au7 thority to cover the Corporation’s net realized 

8 losses.’’. 

9 SEC. 107. ADJUSTMENTS FOR CHANGES IN DIRECT SPEND10 ING. 

11 Section 251(b)(2) of the Balanced Budget and Emer12 gency Deficit Control Act of 1985 is amended by adding 

13 at the end the following new subparagraph: 

14 ‘‘(E) CHANGES IN DIRECT SPENDING PRO15 GRAMS.—If an appropriation for the budget 

16 year causes a change in direct spending in any 

17 outyear, then there shall be an appropriate ad18 justment for that outyear for the discretionary 

19 spending limit under this section and the direct 

20 spending limit under section 252.’’. 


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1 TITLE II—BUDGETING FOR 

2 EMERGENCIES AND WAR 

3 SEC. 201. ALLOCATIONS FOR THE GLOBAL WAR ON TER4 RORISM. 

5 Section 302(a)(5) of the Congressional Budget Act 

6 of 1974 (2 U.S.C. 633) is amended to read as follows: 

7 ‘‘(5) GLOBAL WAR ON TERRORISM (GWOT).— 

8 The joint explanatory statement accompanying a 

9 conference report on a concurrent resolution on the 

10 budget for a fiscal year may include an allocation, 

11 consistent with the resolution recommended in the 

12 conference report, of the level for the global war on 

13 terrorism (GWOT) for that fiscal year.’’. 

14 SEC. 202. EMERGENCY AND GLOBAL WAR ON TERRORISM 

15 (GWOT) ADJUSTMENT PROCEDURES. 

16 (a) IN GENERAL.—Title III of the Congressional 

17 Budget Act of 1974 is amended by adding at the end the 

18 following new section: 

19 ‘‘EMERGENCIES; GLOBAL WAR ON TERRORISM (GWOT)

20 ‘‘SEC. 318. (a) ADJUSTMENT PROCEDURES.—Before 

21 any adjustment is made pursuant to this section for any 

22 bill or joint resolution, or conference report thereon, that 

23 designates a provision an emergency or for the global war 

24 on terrorism (GWOT), the enactment of which would 


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1 cause an increase in budget authority or decrease in rev2 enue: 

3 ‘‘(1) The chairman of the Committee on the 

4 Budget of the House of Representatives or the Sen5 ate shall convene a meeting of that committee, where 

6 it shall be in order, subject to the terms set forth 

7 in this section, for one motion described in para8 graph (2) to be made to authorize the chairman to 

9 make adjustments above the applicable allocation set 

10 forth in the most recently enacted concurrent resolu11 tion on the budget pursuant to the requirement of 

12 section 302(a)(5) or (6). 

13 ‘‘(2) The motion referred to in paragraph (1) 

14 shall be in the following form: ‘I move that the 

15 chairman of the Committee on the Budget be au16 thorized to adjust the allocations and aggregates set 

17 forth in the concurrent resolution on the budget by 

18 the following amount: $llll for fiscal year 

19 lll.’, with the blanks being filled in with an 

20 amount and fiscal year determined by the chairman 

21 of the Committee on the Budget of the House of 

22 Representatives or the Senate. 

23 ‘‘(3) The motion set forth in paragraph (2) 

24 shall be open for debate and amendment, but any 


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1 amendment offered thereto is only in order if limited 

2 to changing an amount in the motion. 

3 ‘‘(b) ALTERNATE ADJUSTMENT PROCEDURES FOR

4 EMERGENCIES AND THE GLOBAL WAR ON TERRORISM.— 

5 The chairman of the Committee on the Budget of the 

6 House of Representatives or the Senate shall make any 

7 adjustments he deems necessary under this section if he 

8 determines such adjustments are essential to respond to 

9 an urgent and imminent need. 

10 ‘‘(c) LEGISLATION PROVIDING FOR AN ADJUSTMENT

11 OF DISCRETIONARY CAPS.—(1) If any committee of the 

12 House of Representatives or the Senate reports any bill 

13 or resolution which provides funding designated for emer14 gencies or for the global war on terrorism, such bill or 

15 resolution shall then be referred to the Committee on the 

16 Budget of the House of Representatives or the Senate, as 

17 the case may be, with instructions to report it, with an 

18 amendment to section 251(c) of the Balanced Budget and 

19 Emergency Deficit Control Act of 1985 for an appropriate 

20 adjustment for the applicable fiscal year, within 15 cal21 endar days (not counting any day on which that House 

22 is not in session) beginning with the day following the day 

23 on which it is referred. If the Committee on the Budget 

24 of either House fails to report a bill or resolution referred 

25 to it under this paragraph within such 15-day period, the 


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1 committee shall automatically be discharged from further 

2 consideration of such bill or resolution and such bill or 

3 resolution shall be placed on the appropriate calendar. 

4 ‘‘(2) The Committee on the Budget of each House 

5 shall have jurisdiction to report any bill or resolution re6 ferred to it under paragraph (1) with an amendment 

7 which changes the discretionary spending limit for the ap8 plicable fiscal year.’’. 

9 (b) CONFORMING AMENDMENT.—The table of con10 tents set forth in section 1(b) of the Congressional Budget 

11 and Impoundment Control Act of 1974 is amended by in12 serting after the item relating to section 317 the following 

13 new item: 

‘‘Sec. 318. Emergencies; global war on terrorism (GWOT).’’. 

14 SEC. 203. ELIMINATION OF EMERGENCY ADJUSTMENTS. 

15 Section 314 of the Congressional Budget Act of 1974 

16 is amended by striking subsection (d) and redesignating 

17 subsection (e) as subsection (d). 

18 SEC. 204. CONFORMING AMENDMENT TO THE BALANCED 

19 BUDGET AND EMERGENCY DEFICIT CONTROL 

20 ACT OF 1985. 

21 Sections 251(b)(2)(A), 251(b)(2)(D), and 

22 252(d)(4)(B) of the Balanced Budget and Emergency 

23 Deficit Control Act of 1985 are repealed and section 

24 251(b)(2) is amended by redesignating subparagraphs (B) 

25 and (C) as subparagraphs (A) and (B), respectively. 


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1 TITLE III—ENFORCING CUT-AS2 YOU-GO 

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

4 (a) CUT-AS-YOU-GO POINT OF ORDER.—(1) Title III 

5 of the Congressional Budget Act of 1974 (as amended by 

6 section 201) is further amended by adding at the end the 

7 following new section: 

8 ‘‘ENFORCING CUT-AS-YOU-GO

9 ‘‘SEC. 317. (a) POINT OF ORDER.—(1) Except as 

10 provided in subsections (b) and (c), it shall not be in order 

11 in the House of Representatives or the Senate to consider 

12 a bill or joint resolution, or an amendment thereto or a 

13 conference report thereon, if the provisions of such meas14 ure have the net effect of increasing direct spending for 

15 the period of either— 

16 ‘‘(A) the current year, the budget year, and the 

17 four fiscal years following that budget year; or 

18 ‘‘(B) the current year, the budget year, and the 

19 nine fiscal years following that budget year. 

20 ‘‘(2) For the purpose of this section, the terms ‘budg21 et year’ and ‘current year’ have the meanings specified 

22 in section 250 of the Balanced Budget and Emergency 

23 Deficit Control Act of 1985, and the term ‘direct spend24 ing’ includes provisions in appropriation Acts that make 


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1 outyear changes to or restrictions on entitlement law or 

2 other direct spending contained in an appropriation Act. 

3 ‘‘(b) SPECIAL RULE IN THE HOUSE.—If a bill or 

4 joint resolution, or an amendment thereto, is considered 

5 pursuant to a special order of the House of Representa6 tives directing the Clerk to add as new matter at the end 

7 of such bill or joint resolution the entire text of a separate 

8 measure or measures as passed by the House of Rep9 resentatives, the new matter proposed to be added shall 

10 be included in the evaluation under subsection (a) of the 

11 bill, joint resolution, or amendment.’’. 

12 (2) The table of contents set forth in section 1(b) of 

13 the Congressional Budget and Impoundment Control Act 

14 of 1974 is amended by inserting after the item relating 

15 to section 318 the following new item: 

‘‘Sec. 317. Enforcing Cut-As-You-Go.’’. 

16 (b) REPEALER.—Clause 10 of rule XXI of the Rules 

17 of the House of Representatives is repealed. 

18 TITLE IV—SUPERMAJORITY 

19 POINTS OF ORDER 

20 SEC. 401. SUPERMAJORITY POINTS OF ORDER. 

21 (a) WAIVERS.—Section 904(c) of the Congressional 

22 Budget Act of 1974 is amended to read as follows: 

23 ‘‘(c) WAIVERS.—Sections 301(i), 302(c), 302(f), 

24 305(b)(2), 305(c)(4), 306, 310(d)(2), 310(g), 311(a), 

25 312(b), 312(c), 313, 314(e), 317(a), 904(c), and 904(d) 


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1 of this Act and section 258C(a)(5) of the Balanced Budget 

2 and Emergency Deficit Control Act of 1985 may be 

3 waived or suspended in the Senate only by the affirmative 

4 vote of three-fifths of the Members, duly chosen and 

5 sworn.’’. 

6 (b) APPEALS.—Section 904(d) of the Congressional 

7 Budget Act of 1974 is amended by repealing paragraphs 

8 (2) and (3) and by inserting after paragraph (1) the fol9 lowing new paragraph: 

10 ‘‘(2) APPEALS.—An affirmative vote of two11 thirds of the Members, duly chosen and sworn, shall 

12 be required in the Senate to sustain an appeal of the 

13 ruling of the Chair on a point of order raised under 

14 any section referred to in subsection (c).’’. 

15 (c) EXPIRATION.—Subsection (e) of section 904 of 

16 the Congressional Budget Act of 1974 is repealed. 

Æ 


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