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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3844 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 3844

 To provide for greater transparency and honesty in the Federal budget 
                                process.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 31, 2012

Mrs. Roby (for herself, Mr. Huizenga of Michigan, Mr. Southerland, Mr. 
 Kinzinger of Illinois, Mrs. Adams, Mr. Huelskamp, Mr. Duncan of South 
Carolina, Mr. West, Mr. Gibbs, Mrs. Ellmers, Mr. Cravaack, Mr. Johnson 
   of Ohio, Mr. Griffin of Arkansas, Mr. Reed, Mr. Fitzpatrick, Ms. 
 Hayworth, Mr. Gardner, Mr. Berg, Mr. Brooks, Mr. Duffy, Mr. Canseco, 
Mrs. Black, Mr. Ross of Florida, Mr. Dold, Mr. Austin Scott of Georgia, 
Mr. Flores, Mr. Hultgren, Mr. Crawford, and Mr. Bachus) introduced the 
following bill; which was referred to the Committee on the Budget, and 
  in addition to the Committees on Rules and Oversight and Government 
 Reform, 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 provide for greater transparency and honesty in the Federal budget 
                                process.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Honest Budget Act 
of 2012''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. No budget--no appropriations.
Sec. 3. No phony emergency designations.
Sec. 4. Strengthen the Federal Credit Reform Act of 1990.
Sec. 5. No changes in mandatory programs in appropriation bills.
Sec. 6. Don't count rescissions that don't save money.
Sec. 7. Prohibition on step increases for Federal employee 
                            compensation.
Sec. 8. Point of order against advance appropriations.
Sec. 9. Prohibit timing shifts.
Sec. 10. Budget scoring rule relating to transfers from the general 
                            fund of the Treasury to the Highway Trust 
                            Fund that increase public indebtedness.

SEC. 2. NO BUDGET--NO APPROPRIATIONS.

    Section 904 of the Congressional Budget Act of 1974 (2 U.S.C. 621 
note) is amended--
            (1) in subsection (c)(1), by inserting after ``Sections'' 
        the following: ``303(c),''; and
            (2) in subsection (d)(2), by inserting after ``sections'' 
        the following: ``303(c),''.

SEC. 3. NO PHONY EMERGENCY DESIGNATIONS.

    (a) Emergency Requirement in a Bill, Joint Resolution, or 
Conference Report.--
            (1) In general.--It shall not be in order in the House of 
        Representatives or the Senate to consider any bill, joint 
        resolution, or conference report that--
                    (A) designates as an emergency requirement, 
                pursuant to section 403 of S. Con. Res. 13 (110th 
                Congress, the FY 2010 Budget Resolution), clause 10(c) 
                of rule XXI of the Rules of the House of 
                Representatives, section 4(g) of the Statutory Pay-As-
                You-Go Act of 2010, or section 251(b)(2)(A)(i) of the 
                Balanced Budget and Emergency Deficit Control Act of 
                1985 any provision that creates discretionary or direct 
                spending or decreases revenues; or
                    (B) designates as being for disaster relief 
                pursuant to section 251(b)(2)(D) of the Balanced Budget 
                and Emergency Deficit Control Act of 1985.
            (2) Waiver.--An affirmative vote of three-fifths of the 
        Members, duly chosen and sworn, shall be required to sustain an 
        appeal of the ruling of the Chair on a point of order against 
        such a measure raised under this subsection.
            (3) Exception.--For purposes of this subsection, a 
        conference report may include an emergency designation only if 
        it was also adopted in the House of Representatives or Senate 
        version of the measure subject to the conference report.
    (b) Emergency Requirement in an Amendment.--
            (1) In general.--It shall not be in order in the House of 
        Representatives or the Senate to consider any bill, joint 
        resolution, or conference report that--
                    (A) designates as an emergency requirement, 
                pursuant to section 403 of S. Con. Res. 13 (110th 
                Congress, the FY 2010 Budget Resolution), clause 10(c) 
                of rule XXI of the Rules of the House of 
                Representatives, section 4(g) of the Statutory Pay-As-
                You-Go Act of 2010, or section 251(b)(2)(A)(i) of the 
                Balanced Budget and Emergency Deficit Control Act of 
                1985 any provision that creates discretionary or direct 
                spending or decreases revenues; or
                    (B) designates as being for disaster relief 
                pursuant to section 251(b)(2)(D) of the Balanced Budget 
                and Emergency Deficit Control Act of 1985.
            (2) Waiver and appeal.--A point of order against an 
        amendment under this subsection may be waived or suspended only 
        by an affirmative vote of three-fifths of the Members, duly 
        chosen and sworn. In the Senate, an affirmative vote of three-
        fifths of the Members, duly chosen and sworn, shall be required 
        to sustain an appeal of the ruling of the Chair on a point of 
        order against such an amendment raised under this subsection.
    (c) Rules or Orders in the House of Representatives.--In the House 
of Representatives, it shall not be in order to consider a rule or 
order that waives the application of subsection (a) or (b). As 
disposition of a point of order under this subsection, the Chair shall 
put the question of consideration with respect to the rule or order. 
The question of consideration shall be debatable for 10 minutes by the 
Member initiating the point of order and for 10 minutes by an opponent, 
but shall otherwise be decided without intervening motion except one 
that the House adjourn.
    (d) Changes to the Statutory Pay-As-You-Go Act of 2010.--Section 
4(g) of the Statutory Pay-As-You-Go Act of 2010 is amended by striking 
paragraph (3) and inserting the following:
            ``(3) Designation in the house of representatives or the 
        senate.--A provision or provisions designated as an emergency 
        requirement pursuant to this section are subject to section 3 
        of the Honest Budget Act of 2012.''.

SEC. 4. STRENGTHEN THE FEDERAL CREDIT REFORM ACT OF 1990.

    Title V of the Congressional Budget Act of 1990 is amended to read 
as follows:

                        ``TITLE V--CREDIT REFORM

``SEC. 500. SHORT TITLE.

    ``This title may be cited as the `Federal Credit Reform Act of 
1990'.

``SEC. 501. PURPOSES.

    ``The purposes of this title are to--
            ``(1) measure more accurately the costs of Federal credit 
        programs and financial investments by accounting for them on a 
        fair value basis;
            ``(2) place the cost of credit programs and financial 
        investments on a budgetary basis equivalent to other Federal 
        spending;
            ``(3) encourage the delivery of benefits in the form most 
        appropriate to the needs of beneficiaries; and
            ``(4) improve the allocation of resources among Federal 
        programs.

``SEC. 502. DEFINITIONS.

    ``For purposes of this title:
            ``(1) The term `direct loan' means a disbursement of funds 
        by the Government to a non-Federal borrower under a contract 
        that requires the repayment of such funds with or without 
        interest. The term includes the purchase of, or participation 
        in, a loan made by another lender and financing arrangements 
        that defer payment for more than 90 days, including the sale of 
        a Government asset on credit terms. The term does not include 
        the acquisition of a federally guaranteed loan in satisfaction 
        of default claims or the price support loans of the Commodity 
        Credit Corporation.
            ``(2) The term `direct loan obligation' means a binding 
        agreement by a Federal agency to make a direct loan when 
        specified conditions are fulfilled by the borrower.
            ``(3) The term `loan guarantee' means any guarantee, 
        insurance, or other pledge with respect to the payment of all 
        or a part of the principal or interest on any debt obligation 
        of a non-Federal borrower to a non-Federal lender, but does not 
        include the insurance of deposits, shares, or other 
        withdrawable accounts in financial institutions.
            ``(4) The term `loan guarantee commitment' means a binding 
        agreement by a Federal agency to make a loan guarantee when 
        specified conditions are fulfilled by the borrower, the lender, 
        or any other party to the guarantee agreement.
            ``(5)(A) The term `financial investment' means an 
        investment by the Government in any securities (debt or 
        equity), stocks, bonds, or futures, options, swaps, or other 
        derivatives, issued by a non-Federal entity, including State, 
        local tribal, and foreign governments, and private 
        organizations, regardless of whether the issuances are 
        federally guaranteed, or issued by a Federal entity if the 
        issuance consists of marketable securities.
            ``(B) The term includes Government investments in money 
        market and mutual funds, even if the money market or mutual 
        fund's assets consist entirely of Federal securities.
            ``(6) The term `financial investment commitment' means a 
        binding agreement by a Federal agency to acquire a financial 
        investment when specified conditions are fulfilled by other 
        party to the investment agreement.
            ``(7)(A) The term `cost' means the sum of the Treasury 
        discounting component and the risk component of a direct loan, 
        loan guarantee, or financial investment or a modification 
        thereof.
            ``(B) The Treasury discounting component shall be the 
        estimated long-term cost to the Government of a direct loan, 
        loan guarantee, or financial investment or modification 
        thereof, calculated on a net present value basis, excluding 
        administrative costs and any incidental effects on governmental 
        receipts or outlays.
            ``(C) The risk component shall be an amount equal to the 
        difference between--
                    ``(i) the estimated long-term cost to the 
                Government of a direct loan, loan guarantee, or 
                financial investment or modification thereof, estimated 
                on a fair value basis, applying the guidelines set 
                forth by the Financial Accounting Standards Board in 
                Financial Accounting Standards #157, or a successor 
                thereto, excluding administrative costs and any 
                incidental effects on governmental receipts or outlays; 
                and
                    ``(ii) the Treasury discounting component of such 
                direct loan, loan guarantee, or financial investment or 
                modification thereof.
            ``(D) The Treasury discounting component of a direct loan 
        shall be the net present value, at the time when the direct 
        loan is disbursed, of the following estimated cash flows:
                    ``(i) Loan disbursements.
                    ``(ii) Repayments of principal.
                    ``(iii) Essential preservation expenses, payments 
                of interest and other payments by or to the Government 
                over the life of the loan after adjusting for estimated 
                defaults, prepayments, fees, penalties, and other 
                recoveries, including the effects of changes in loan 
                terms resulting from the exercise by the borrower of an 
                option included in the loan contract.
            ``(E) The Treasury discounting component of a loan 
        guarantee shall be the net present value, at the time when the 
        direct loan is disbursed, of the following estimated cash 
        flows:
                    ``(i) Payments by the Government to cover defaults 
                and delinquencies, interests subsidies, essential 
                preservation expenses, or other payments.
                    ``(ii) Payments to the Government including 
                origination and other fees, penalties, and recoveries, 
                including the effects of changes in loan terms 
                resulting from the exercise by the guaranteed lender of 
                an option included in the loan guarantee contract, or 
                by the borrower of an option included in the guaranteed 
                loan contract.
            ``(F) The Treasury discounting component of a financial 
        investment shall be the net present value, at the time the 
        financial investment is executed, of the following estimated 
        cash flows:
                    ``(i) Payments by the Government including 
                essential preservation expenses.
                    ``(ii) Payments to the Government including any 
                dividends, periodic payments, fees, penalties, or 
                recoveries;
        Including the effects of changes in investment terms resulting 
        from the exercise by the non-Federal entity of an option 
        included in the investment contract.
            ``(G) The cost of a modification is the sum of--
                    ``(i) the difference between the current estimate 
                of the Treasury discounting component of the remaining 
                cash flows under the terms of a direct loan, loan 
                guarantee, or financial investment contract, and the 
                current estimate of the Treasury discounting component 
                of the remaining cash flows under the terms of the 
                contract, as modified; and
                    ``(ii) the difference between the current estimate 
                of the risk component of the remaining cash flows under 
                the terms of a direct loan, loan guarantee, or 
                financial investment contract, and the current estimate 
                of the risk component of the remaining cash flows under 
                the terms of the contract as modified.
            ``(H) In estimating Treasury discounting components, the 
        discount rate shall be the average interest rate on marketable 
        Treasury securities of similar duration to the cash flows of 
        the direct loan or loan guarantee for which the estimate is 
        being made.
            ``(I) When funds are obligated for a direct loan or loan 
        guarantee, the estimated cost shall be based on the current 
        assumptions, adjusted to incorporate the terms of the loan 
        contract, for the fiscal year in which the funds are obligated.
            ``(8) The term `program account' means the budget account 
        into which an appropriation to cover the cost of a direct loan, 
        loan guarantee, or financial investment program is made and 
        from which such cost is disbursed to the financing account.
            ``(9) The term `financing account' means the nonbudget 
        account or accounts associated with each program account which 
        holds balances, receives the cost payment from the program 
        account, and also includes all other cash flows to and from the 
        Government resulting from direct loan obligations or loan 
        guarantee commitments made on or after October 1, 1991, or 
        financial investment commitments made on or after October 1, 
        2014.
            ``(10) The term `liquidating account' means the budget 
        account that includes all cash flows to and from the Government 
        resulting from direct loan obligations or loan guarantee 
        commitments made prior to October 1, 1991. These accounts shall 
        be shown in the budget on a cash basis.
            ``(11) The term `modification' means any Government action 
        that alters the estimated cost of an outstanding direct loan 
        (or direct loan obligation), an outstanding loan guarantee (or 
        loan guarantee commitment), or outstanding financial investment 
        (or financial investment commitment) from the current estimate 
        of cash flows. This includes the sale of loan assets, with or 
        without recourse, and the purchase of guaranteed loans (or 
        direct loan obligations), loan guarantees (or loan guarantee 
        commitments), financial investments (or financial investment 
        commitments) such as a change in collection procedures.
            ``(12) The term `current' has the same meaning as in 
        section 250(c)(9) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
            ``(13) The term `Director' means the Director of the Office 
        of Management and Budget.
            ``(14) The term `administrative costs' means costs related 
        to program management activities, but does not include 
        essential preservation expenses.
            ``(15) The term `essential preservation expenses' means 
        servicing and other costs that are essential to preserve the 
        value of loan assets or collateral.

``SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND REVIEW.

    ``(a) In General.--For the executive branch, the Director shall be 
responsible for coordinating the estimates required by this title. The 
Director shall consult with the agencies that administer direct loan or 
loan guarantee, or financial investment programs.
    ``(b) Delegation.--The Director may delegate to agencies authority 
to make estimates of costs. The delegation of authority shall be based 
upon written guidelines, regulations, or criteria consistent with the 
definitions in this title.
    ``(c) Coordination With the Congressional Budget Office.--In 
developing estimation guidelines, regulations, or criteria to be used 
by Federal agencies, the Director shall consult with the Director of 
the Congressional Budget Office.
    ``(d) Improving Cost Estimates.--The Director and the Director of 
the Congressional Budget Office shall coordinate the development of 
more accurate data on historical performance and prospective risk of 
direct loan, loan guarantee, and financial investment programs. They 
shall annually review the performance of outstanding direct loans, loan 
guarantees, and financial investment to improve estimates of costs. The 
Office of Management and Budget and the Congressional Budget Office 
shall have access to all agency data that may facilitate the 
development and improvement of estimates of costs.
    ``(e) Historical Credit Programs Costs.--The Director shall review, 
to the extent possible, historical data and develop the best possible 
estimates of adjustments that would convert aggregate historical budget 
data to credit reform accounting.

``SEC. 504. BUDGETARY TREATMENT.

    ``(a) President's Budget.--Beginning with fiscal year 1992, the 
President's budget shall reflect the Treasury discounting component of 
direct loan and loan guarantee programs. Beginning with fiscal year 
2015, the President's budget shall reflect the costs of direct loan, 
loan guarantee, and financial investment programs. The budget shall 
also include the planned level of new direct loan obligations, loan 
guarantee commitments, or financial investment commitments associated 
with each appropriations request.
    ``(b) Appropriations Required.--Notwithstanding any other provision 
of law, new direct loan obligations may be incurred and new loan 
guarantee commitments may be made of fiscal year 1992 and thereafter 
and new financial investment commitments may be made for fiscal year 
2015 and thereafter only to the extent that--
            ``(1) new budget authority to cover their costs is provided 
        in advance in an appropriations Act;
            ``(2) a limitation on the use of funds otherwise available 
        for the cost of a direct loan, loan guarantee, or financial 
        investment program has been provided in advance in an 
        appropriations Act; or
            ``(3) authority is otherwise provided in appropriation 
        Acts.
    ``(c) Exemption for Mandatory Programs.--Subsections (b) and (e) 
shall not apply to a direct loan or loan guarantee program that--
            ``(1) constitutes an entitlement (such as the guaranteed 
        student loan program or the veteran's home loan guaranty 
        program); or
            ``(2) all existing credit programs of the Commodity Credit 
        Corporation on the date of enactment of this title.
    ``(d) Budget Accounting.--
            ``(1) The authority to incur new direct loan obligations, 
        make new loan guarantee commitments, make new financial 
        investment commitments, or modify outstanding direct loans (or 
        direct loan obligations), loan guarantees (or loan guarantee 
        commitments), financial investments (or financial investment 
        commitments) shall constitute new budget authority in an amount 
        equal to the cost of the direct loan or loan guarantee in the 
        fiscal year in which definite authority becomes available or 
        indefinite authority is used. Such budget authority shall 
        constitute an obligation of the program account to pay to the 
        financing account.
            ``(2) The outlays resulting from new budget authority for 
        the cost of direct loans, loan guarantees, or financial 
        investment described in paragraph (1) shall be paid from the 
        program account into the financing account and recorded in the 
        fiscal year in which the direct loan, the guaranteed loan, or 
        financial investment is disbursed or its costs altered.
            ``(3) All collections and payments of the financing 
        accounts shall be a means of financing.
    ``(e) Modifications.--An outstanding direct loan (or direct loan 
obligation), loan guarantee (or loan guarantee commitment), or 
financial investment (or financial investment commitment) shall not be 
modified in a manner that increases its costs unless budget authority 
for the additional cost has been provided in advance in an 
appropriations Act.
    ``(f) Re-Estimates.--When the estimated cost for a group of direct 
loans, loan guarantees, or financial investments for a given program 
made in a single fiscal year is re-estimated in a subsequent year, the 
difference between the re-estimated cost and the previous cost estimate 
shall be displayed as a distinct and separately identified subaccount 
in the program account as a change in program costs and a change in net 
interest. There is hereby provided permanent indefinite authority for 
these re-estimates.
    ``(g) Administrative Expenses.--All funding for an agency's 
administrative costs associated with a direct loan, loan guarantee, or 
financial investment program shall be displayed as distinct and 
separately identified subaccounts within the same budget account as the 
program's cost.

``SEC. 505. AUTHORIZATIONS.

    ``(a) Authorization of Appropriations for Costs.--There are 
authorized to be appropriated to each Federal agency authorized to make 
direct loan obligations, loan guarantee commitments, or financial 
investment commitments such sums as may be necessary to pay the cost 
associated with such direct loan obligations, loan guarantee 
commitments, or financial investment commitments.
    ``(b) Authorization for Financing Accounts.--In order to implement 
the accounting required by this title, the President is authorized to 
establish such non-budgetary accounts as may be appropriate.
    ``(c) Treasury Transactions With the Financing Accounts.--
            ``(1) In general.--The Secretary of the Treasury shall 
        borrow from, receive from, lend to, or pay to the financing 
        accounts such amounts as may be appropriate. The Secretary of 
        the Treasury may prescribe forms and denominations, maturities, 
        and terms and conditions for the transactions described in the 
        preceding sentence, except that the rate of interest charged by 
        the Secretary on lending to financing accounts (including 
        amounts treated as lending to financing accounts by the Federal 
        Financing Bank (hereinafter in this subsection referred to as 
        the `Bank') pursuant to section 405(b)) and the rate of 
        interest paid to financing accounts on uninvested balances in 
        financing accounts shall be the same as the rate determined 
        pursuant to section 502(7)(H).
            ``(2) Loans.--For guaranteed loans financed by the Bank and 
        treated as direct loans by a Federal agency pursuant to section 
        406(b)(1), any fee or interest surcharge (the amount by which 
        the interest rate charged exceeds the rate determined pursuant 
        to section 502(7)(H) that the Bank charges to a private 
        borrower pursuant to section 6(c) of the Federal Financing Bank 
        Act of 1973 shall be considered a cash flow to the Government 
        for the purposes of determining the cost of the direct loan 
        pursuant to section 502(7). All such amounts shall be credited 
        to the appropriate financing account.
            ``(3) Reimbursement.--The Bank is authorized to require 
        reimbursement from a Federal agency to cover the administrative 
        expenses of the Bank that are attributable to the direct loans 
        financed for that agency. All such payments by an agency shall 
        be considered administrative expenses subject to section 
        504(g). This subsection shall apply to transactions related to 
        direct loan obligations or loan guarantee commitments made on 
        or after October 1, 1991.
            ``(4) Authority.--The authorities provided in this 
        subsection shall not be construed to supersede or override the 
        authority of the head of a Federal agency to administer and 
        operate a direct loan or loan guarantee program.
            ``(5) Title 31.--All of the transactions provided in the 
        subsection shall be subject to the provisions of subchapter II 
        of chapter 15 of title 31, United States Code.
            ``(6) Treatment of cash balances.--Cash balances of the 
        financing accounts in excess of current requirements shall be 
        maintained in a form of uninvested funds and the Secretary of 
        the Treasury shall pay interest on these funds. The Secretary 
        of the Treasury shall charge (or pay if the amount is negative) 
        financing accounts an amount equal to the risk component for a 
        direct loan, loan guarantee, or financial investment or 
        modification thereof. Such amount received by the Secretary of 
        the Treasury shall be a means of financing and shall not be 
        considered a cash flow of the Government for the purposes of 
        section 502(7).
    ``(d) Authorization for Liquidating Accounts.--(1) Amounts in 
liquidating accounts shall be available only for payments resulting 
from direct loan obligations or loan guarantee commitments made prior 
to October 1, 1991, for--
            ``(A) interest payments and principal repayments to the 
        Treasury or the Federal Financing Bank for amounts borrowed;
            ``(B) disbursements of loans;
            ``(C) default and other guarantee claim payments;
            ``(D) interest supplement payments;
            ``(E) payments for the costs of foreclosing, managing, and 
        selling collateral that are capitalized or routinely deducted 
        from the proceeds of sales;
            ``(F) payments to financing accounts when required for 
        modifications;
            ``(G) administrative costs and essential preservation 
        expenses, if--
                    ``(i) amounts credited to the liquidating account 
                would have been available for Administrative costs and 
                essential preservation expenses under a provision of 
                law in effect prior to October 1, 1991; and
                    ``(ii) no direct loan obligation or loan guarantee 
                commitment has been made, or any modification of a 
                direct loan or loan guarantee has been made, since 
                September 30, 1991; or
            ``(H) such other payments as are necessary for the 
        liquidation of such direct loan obligations and loan guarantee 
        commitments.
    ``(2) Amounts credited to liquidating accounts in any year shall be 
available only for payments required in that year. Any unobligated 
balances in liquidating accounts at the end of a fiscal year shall be 
transferred to miscellaneous receipts as soon as practicable after the 
end of the fiscal year.
    ``(3) If funds in liquidating accounts are insufficient to satisfy 
obligations and commitments of such accounts, there is hereby provided 
permanent, indefinite authority to make any payments required to be 
made on such obligations and commitments.
    ``(e) Authorization of Appropriations for Implementation 
Expenses.--There are authorized to be appropriated to existing accounts 
such sums as may be necessary for salaries and expenses to carry out 
the responsibilities under this title.
    ``(f) Reinsurance.--Nothing in this title shall be construed as 
authorizing or requiring the purchase of insurance or reinsurance on a 
direct loan or loan guarantee from private insurers. If any such 
reinsurance for a direct loan or loan guarantee is authorized, the cost 
of such insurance and any recoveries to the Government shall be 
included in the calculation of the cost.
    ``(g) Eligibility and Assistance.--Nothing in this title shall be 
construed to change the authority or the responsibility of a Federal 
agency to determine the terms and conditions of eligibility for, or the 
amount of assistance provided by a direct loan or a loan guarantee.

``SEC. 506. TREATMENT OF DEPOSIT INSURANCE AND AGENCIES AND OTHER 
              INSURANCE PROGRAMS.

    ``This title shall not apply to the credit or insurance activities 
of the Federal Deposit Insurance Corporation, National Credit Union 
Administration, Resolution Trust Corporation, Pension Benefit Guaranty 
Corporation, National Flood Insurance, National Insurance Development 
Fund, Crop Insurance, or Tennessee Valley Authority.

``SEC. 507. EFFECT ON OTHER LAWS.

    ``(a) Effect on Other Laws.--This title shall supersede, modify, or 
repeal any provision of law enacted prior to the date of enactment of 
this title to the extent such provision is inconsistent with this 
title. Nothing in this title shall be construed to establish a credit 
limitation on any Federal loan or loan guarantee program.
    ``(b) Crediting of Collections.--Collections resulting from direct 
loans obligated or loan guarantees committed prior to October 1, 1991, 
shall be credited to the liquidating accounts of Federal agencies. 
Amounts so credited shall be available, to the same extent that they 
were available prior to the date of enactment of this title, to 
liquidate obligations arising from such direct loans obligated or loan 
guarantees committed prior to October 1, 1991, including repayment of 
any obligations held by the Secretary of the Treasury or the Federal 
Financing Bank. The unobligated balances of such accounts that are in 
excess of current needs shall be transferred to the general fund of the 
Treasury. Such transfers shall be made from time to time but, at least 
once each year.''.

SEC. 5. NO CHANGES IN MANDATORY PROGRAMS IN APPROPRIATION BILLS.

    Section 302(f) of the Congressional Budget Act of 1974 is amended 
to read as follows:
    ``(f) Legislation Subject to Point of Order.--
            ``(1) In the house of representatives.--(A) After the 
        Congress has completed action on a concurrent resolution on the 
        budget for a fiscal year, it shall not be in order in the House 
        of Representatives to consider any bill, joint resolution, or 
        amendment providing new budget authority or outlays for any 
        fiscal year, or any conference report on any such bill or joint 
        resolution, if the enactment of such bill or resolution as 
        reported, the adoption and enactment of such amendment, or the 
        enactment of such bill or resolution in the form recommended in 
        such conference report, would cause--
                    ``(i) the applicable allocation of new budget 
                authority or outlays made under subsection (a) or (b) 
                for the first fiscal year or the total of fiscal years 
                to be exceeded, or
                    ``(ii) appropriations legislation to contain a 
                provision that would have been estimated as affecting 
                direct spending or receipts under section 252 of the 
                Balanced Budget and Emergency Deficit Control Act of 
                1985 were it included in legislation other than 
                appropriations legislation, if such provision does not 
                result in net outlay savings over the total of the 
                period of the current year, the budget year, and all 
                fiscal years covered under the most recently adopted 
                concurrent resolution on the budget.
            ``(B) In the House of Representatives, it shall not be in 
        order to consider a rule or order that waives the application 
        of subparagraph (A). As disposition of a point of order under 
        this subparagraph, the Chair shall put the question of 
        consideration with respect to the rule or order. The question 
        of consideration shall be debatable for 10 minutes by the 
        Member initiating the point of order and for 10 minutes by an 
        opponent, but shall otherwise be decided without intervening 
        motion except one that the House adjourn.
            ``(2) In the senate.--After a concurrent resolution on the 
        budget is agreed to, it shall not be in order in the Senate to 
        consider any bill or joint resolution, amendment, motion, or 
        conference report that--
                    ``(A) in the case of any committee except the 
                Committee on Appropriations, would cause the applicable 
                allocation of new budget authority or outlays under 
                subsection (a) for the first fiscal year or the total 
                of fiscal years to be exceeded; or
                    ``(B) in the case of the Committee on 
                Appropriations would--
                            ``(i) cause the applicable suballocation of 
                        new budget authority or outlays under 
                        subsection (b) to be exceeded; or
                            ``(ii) includes one or more provisions that 
                        would have been estimated as affecting direct 
                        spending or receipts under section 252 of the 
                        Balanced Budget and Emergency Deficit Control 
                        Act of 1985 were they included in legislation 
                        other than appropriations legislation, if such 
                        provision does not result in net outlay savings 
                        over the total of the period of the current 
                        year, the budget year, and all fiscal years 
                        covered under the most recently adopted 
                        concurrent resolution on the budget.''.

SEC. 6. DON'T COUNT RESCISSIONS THAT DON'T SAVE MONEY.

    Section 312(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
643(a)) is amended--
            (1) by striking ``For purposes'' and inserting the 
        following:
            ``(1) In general.--For purposes;''; and
            (2) by adding at the end the following:
            ``(2) Exclusion.--In making determinations under paragraph 
        (1), the committee shall not count rescissions of budget 
        authority that do not result in outlay savings over the period 
        of fiscal years covered by the concurrent resolution on the 
        budget.''.

SEC. 7. PROHIBITION ON STEP INCREASES FOR FEDERAL EMPLOYEE 
              COMPENSATION.

    (a) Periodic Step Increases.--Notwithstanding any other provision 
of law, no periodic step increase under section 5335 of title 5, United 
States Code, which (but for this subsection) would otherwise take 
effect during the period beginning on the date of enactment of this Act 
and ending on December 31, 2012, shall be made.
    (b) Additional Step Increases.--The head of an agency may not grant 
additional step increases under section 5336 of title 5, United States 
Code, during the period beginning on the date of enactment of this Act 
and ending on December 31, 2012.

SEC. 8. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

    (a) In General.--
            (1) Point of order.--Except as provided in subsection (b), 
        it shall not be in order in the House of Representatives or the 
        Senate to consider any bill, joint resolution, motion, 
        amendment, or conference report that would provide an advance 
        appropriation.
            (2) Definition.--In this section, the term ``advance 
        appropriation'' means any new budget authority provided in a 
        bill or joint resolution making appropriations for fiscal year 
        2012 that first becomes available for any fiscal year after 
        2012, or any new budget authority provided in a bill or joint 
        resolution making general appropriations or continuing 
        appropriations for each of the budget years 2012 through 2022, 
        that first becomes available for any fiscal year after the 
        budget year.
    (b) Exceptions.--Advance appropriations may be provided as follows:
            (1) For fiscal years 2013 through 2022 in an aggregate 
        amount not to exceed $28,852,000,000 in new budget authority in 
        each year for the following programs, projects, activities, or 
        accounts:
                    (A) Employment and Training Administration.
                    (B) Job Corps.
                    (C) Education for the Disadvantaged.
                    (D) School Improvement.
                    (E) Children and Family Services (Head Start).
                    (F) Special Education.
                    (G) Career, Technical, and Adult Education.
                    (H) Financial Services and General Government: 
                Payment to Postal Service.
                    (I) Transportation, Housing and Urban Development: 
                Tenant-based Rental Assistance Project-based Rental 
                Assistance.
            (2) For the Corporation for Public Broadcasting.
            (3) For the Department of Veterans Affairs for the Medical 
        Services, Medical Support and Compliance, and Medical 
        Facilities accounts of the Veterans Health Administration.
    (c) Supermajority Waiver and Appeal.--
            (1) Waiver.--In the House of Representatives or the Senate, 
        subsection (a)(1) may be waived or suspended only by an 
        affirmative vote of three-fifths of the Members, duly chosen 
        and sworn.
            (2) Appeal.--In the Senate, an affirmative vote of three-
        fifths of the Members of the Senate, duly chosen and sworn, 
        shall be required to sustain an appeal of the ruling of the 
        Chair on a point of order raised under subsection (a).
    (d) Form of Point of Order.--A point of order under subsection (a) 
may be raised by any Member as provided in section 313(e) of the 
Congressional Budget Act of 1974.
    (e) Rules or Orders in the House of Representatives.--In the House 
of Representatives, it shall not be in order to consider a rule or 
order that waives the application of subsection (a)(1). As disposition 
of a point of order under this subsection, the Chair shall put the 
question of consideration with respect to the rule or order. The 
question of consideration shall be debatable for 10 minutes by the 
Member initiating the point of order and for 10 minutes by an opponent, 
but shall otherwise be decided without intervening motion except one 
that the House adjourn.
    (f) Conference Reports.--When the House of Representatives or the 
Senate is considering a conference report on, or an amendment between 
the Houses in relation to, a bill, upon a point of order being made by 
any Member pursuant to this section, and such point of order being 
sustained, such material contained in such conference report shall be 
deemed stricken, and the applicable House shall proceed to consider the 
question of whether it shall recede from its amendment and concur with 
a further amendment, or concur in the amendment of the other House with 
a further amendment, as the case may be, which further amendment shall 
consist of only that portion of the conference report or amendment, as 
the case may be, not so stricken. Any such motion in the House of 
Representatives or Senate shall be debatable. In any case in which such 
point of order is sustained against a conference report (or House or 
Senate amendment, as applicable, derived from such conference report by 
operation of this subsection), no further amendment shall be in order.

SEC. 9. PROHIBIT TIMING SHIFTS.

    (a) In General.--In the House of Representatives or the Senate, for 
purposes of enforcement of points of order established under the 
Congressional Budget Act of 1974, S. Con. Res. 21 (110th Congress; 
Fiscal Year 2008 Budget Resolution), S. Con. Res. 70 (110th Congress; 
Fiscal Year 2009 Budget Resolution), S. Con. Res. 13 (111th Congress; 
Fiscal Year 2010 Budget Resolution), and subsequent concurrent 
resolutions on the budget, a provision in any bill, resolution, 
amendment, motion, amendment between houses, or conference report that 
shifts outlays or revenues from one year to another by a date change to 
act as an offset for other provisions that increase the deficit for a 
time period shall not count.
    (b) Rules or Orders in the House of Representatives.--In the House 
of Representatives, it shall not be in order to consider a rule or 
order that waives the application of subsection (a). As disposition of 
a point of order under this subsection, the Chair shall put the 
question of consideration with respect to the rule or order. The 
question of consideration shall be debatable for 10 minutes by the 
Member initiating the point of order and for 10 minutes by an opponent, 
but shall otherwise be decided without intervening motion except one 
that the House adjourn.

SEC. 10. BUDGET SCORING RULE RELATING TO TRANSFERS FROM THE GENERAL 
              FUND OF THE TREASURY TO THE HIGHWAY TRUST FUND THAT 
              INCREASE PUBLIC INDEBTEDNESS.

    (a) In General.--In the House of Representatives or the Senate, for 
purposes of enforcement of points of order established under the 
Congressional Budget Act of 1974, S. Con. Res. 21 (110th Congress; 
Fiscal Year 2008 Budget Resolution), S. Con. Res. 70 (110th Congress; 
Fiscal Year 2009 Budget Resolution), S. Con. Res. 13 (111th Congress; 
Fiscal Year 2010 Budget Resolution), and subsequent concurrent 
resolutions on the budget, a bill, resolution, amendment, motion, 
amendment between houses, or conference report that transfers funds 
from the general fund of the Treasury to the Highway Trust Fund and 
that increases the level of indebtedness that is subject to the current 
applicable statutory public debt limit shall be counted by the chairman 
of the Committee on the Budget of the House of Representatives or the 
Senate, as applicable, as new budget authority and outlays equal to the 
amount of the transfer in the fiscal year the transfer occurs.
    (b) Rules or Orders in the House of Representatives.--In the House 
of Representatives, it shall not be in order to consider a rule or 
order that waives the application of subsection (a). As disposition of 
a point of order under this subsection, the Chair shall put the 
question of consideration with respect to the rule or order. The 
question of consideration shall be debatable for 10 minutes by the 
Member initiating the point of order and for 10 minutes by an opponent, 
but shall otherwise be decided without intervening motion except one 
that the House adjourn.
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