I 

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. 

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 AND TABLE OF CONTENTS. 

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

5 ‘‘Honest Budget Act of 2012’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 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. 

3 SEC. 2. NO BUDGET—NO APPROPRIATIONS. 

4 Section 904 of the Congressional Budget Act of 1974 

5 (2 U.S.C. 621 note) is amended— 

6 (1) in subsection (c)(1), by inserting after ‘‘Sec7 tions’’ the following: ‘‘303(c),’’; and 

8 (2) in subsection (d)(2), by inserting after ‘‘sec9 tions’’ the following: ‘‘303(c),’’. 

10 SEC. 3. NO PHONY EMERGENCY DESIGNATIONS. 

11 (a) EMERGENCY REQUIREMENT IN A BILL, JOINT

12 RESOLUTION, OR CONFERENCE REPORT.— 

13 (1) IN GENERAL.—It shall not be in order in 

14 the House of Representatives or the Senate to con15 sider any bill, joint resolution, or conference report 

16 that— 

17 (A) designates as an emergency require18 ment, pursuant to section 403 of S. Con. Res. 

19 13 (110th Congress, the FY 2010 Budget Res20 olution), clause 10(c) of rule XXI of the Rules 


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1 of the House of Representatives, section 4(g) of 

2 the Statutory Pay-As-You-Go Act of 2010, or 

3 section 251(b)(2)(A)(i) of the Balanced Budget 

4 and Emergency Deficit Control Act of 1985 any 

5 provision that creates discretionary or direct 

6 spending or decreases revenues; or 

7 (B) designates as being for disaster relief 

8 pursuant to section 251(b)(2)(D) of the Bal9 anced Budget and Emergency Deficit Control 

10 Act of 1985. 

11 (2) WAIVER.—An affirmative vote of three12 fifths of the Members, duly chosen and sworn, shall 

13 be required to sustain an appeal of the ruling of the 

14 Chair on a point of order against such a measure 

15 raised under this subsection. 

16 (3) EXCEPTION.—For purposes of this sub17 section, a conference report may include an emer18 gency designation only if it was also adopted in the 

19 House of Representatives or Senate version of the 

20 measure subject to the conference report. 

21 (b) EMERGENCY REQUIREMENT IN AN AMEND22 MENT.— 

23 (1) IN GENERAL.—It shall not be in order in 

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1 sider any bill, joint resolution, or conference report 

2 that— 

3 (A) designates as an emergency require4 ment, pursuant to section 403 of S. Con. Res. 

5 13 (110th Congress, the FY 2010 Budget Res6 olution), clause 10(c) of rule XXI of the Rules 

7 of the House of Representatives, section 4(g) of 

8 the Statutory Pay-As-You-Go Act of 2010, or 

9 section 251(b)(2)(A)(i) of the Balanced Budget 

10 and Emergency Deficit Control Act of 1985 any 

11 provision that creates discretionary or direct 

12 spending or decreases revenues; or 

13 (B) designates as being for disaster relief 

14 pursuant to section 251(b)(2)(D) of the Bal15 anced Budget and Emergency Deficit Control 

16 Act of 1985. 

17 (2) WAIVER AND APPEAL.—A point of order 

18 against an amendment under this subsection may be 

19 waived or suspended only by an affirmative vote of 

20 three-fifths of the Members, duly chosen and sworn. 

21 In the Senate, an affirmative vote of three-fifths of 

22 the Members, duly chosen and sworn, shall be re23 quired to sustain an appeal of the ruling of the 

24 Chair on a point of order against such an amend25 ment raised under this subsection. 


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1 (c) RULES OR ORDERS IN THE HOUSE OF REP2 RESENTATIVES.—In the House of Representatives, it shall 

3 not be in order to consider a rule or order that waives 

4 the application of subsection (a) or (b). As disposition of 

5 a point of order under this subsection, the Chair shall put 

6 the question of consideration with respect to the rule or 

7 order. The question of consideration shall be debatable for 

8 10 minutes by the Member initiating the point of order 

9 and for 10 minutes by an opponent, but shall otherwise 

10 be decided without intervening motion except one that the 

11 House adjourn. 

12 (d) CHANGES TO THE STATUTORY PAY-AS-YOU-GO

13 ACT OF 2010.—Section 4(g) of the Statutory Pay-As-You14 Go Act of 2010 is amended by striking paragraph (3) and 

15 inserting the following: 

16 ‘‘(3) DESIGNATION IN THE HOUSE OF REP17 RESENTATIVES OR THE SENATE.—A provision or 

18 provisions designated as an emergency requirement 

19 pursuant to this section are subject to section 3 of 

20 the Honest Budget Act of 2012.’’. 

21 SEC. 4. STRENGTHEN THE FEDERAL CREDIT REFORM ACT 

22 OF 1990. 

23 Title V of the Congressional Budget Act of 1990 is 

24 amended to read as follows: 


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1 ‘‘TITLE V—CREDIT REFORM 

2 ‘‘SEC. 500. SHORT TITLE. 

3 ‘‘This title may be cited as the ‘Federal Credit Re4 form Act of 1990’. 

5 ‘‘SEC. 501. PURPOSES. 

6 ‘‘The purposes of this title are to— 

7 ‘‘(1) measure more accurately the costs of Fed8 eral credit programs and financial investments by 

9 accounting for them on a fair value basis; 

10 ‘‘(2) place the cost of credit programs and fi11 nancial investments on a budgetary basis equivalent 

12 to other Federal spending; 

13 ‘‘(3) encourage the delivery of benefits in the 

14 form most appropriate to the needs of beneficiaries; 

15 and 

16 ‘‘(4) improve the allocation of resources among 

17 Federal programs. 

18 ‘‘SEC. 502. DEFINITIONS. 

19 ‘‘For purposes of this title: 

20 ‘‘(1) The term ‘direct loan’ means a disburse21 ment of funds by the Government to a non-Federal 

22 borrower under a contract that requires the repay23 ment of such funds with or without interest. The 

24 term includes the purchase of, or participation in, a 

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1 ments that defer payment for more than 90 days, in2 cluding the sale of a Government asset on credit 

3 terms. The term does not include the acquisition of 

4 a federally guaranteed loan in satisfaction of default 

5 claims or the price support loans of the Commodity 

6 Credit Corporation. 

7 ‘‘(2) The term ‘direct loan obligation’ means a 

8 binding agreement by a Federal agency to make a 

9 direct loan when specified conditions are fulfilled by 

10 the borrower. 

11 ‘‘(3) The term ‘loan guarantee’ means any 

12 guarantee, insurance, or other pledge with respect to 

13 the payment of all or a part of the principal or inter14 est on any debt obligation of a non-Federal borrower 

15 to a non-Federal lender, but does not include the in16 surance of deposits, shares, or other withdrawable 

17 accounts in financial institutions. 

18 ‘‘(4) The term ‘loan guarantee commitment’ 

19 means a binding agreement by a Federal agency to 

20 make a loan guarantee when specified conditions are 

21 fulfilled by the borrower, the lender, or any other 

22 party to the guarantee agreement. 

23 ‘‘(5)(A) The term ‘financial investment’ means 

24 an investment by the Government in any securities 

25 (debt or equity), stocks, bonds, or futures, options, 


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1 swaps, or other derivatives, issued by a non-Federal 

2 entity, including State, local tribal, and foreign gov3 ernments, and private organizations, regardless of 

4 whether the issuances are federally guaranteed, or 

5 issued by a Federal entity if the issuance consists of 

6 marketable securities. 

7 ‘‘(B) The term includes Government invest8 ments in money market and mutual funds, even if 

9 the money market or mutual fund’s assets consist 

10 entirely of Federal securities. 

11 ‘‘(6) The term ‘financial investment commit12 ment’ means a binding agreement by a Federal 

13 agency to acquire a financial investment when speci14 fied conditions are fulfilled by other party to the in15 vestment agreement. 

16 ‘‘(7)(A) The term ‘cost’ means the sum of the 

17 Treasury discounting component and the risk com18 ponent of a direct loan, loan guarantee, or financial 

19 investment or a modification thereof. 

20 ‘‘(B) The Treasury discounting component shall 

21 be the estimated long-term cost to the Government 

22 of a direct loan, loan guarantee, or financial invest23 ment or modification thereof, calculated on a net 

24 present value basis, excluding administrative costs 


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1 and any incidental effects on governmental receipts 

2 or outlays. 

3 ‘‘(C) The risk component shall be an amount 

4 equal to the difference between— 

5 ‘‘(i) the estimated long-term cost to the 

6 Government of a direct loan, loan guarantee, or 

7 financial investment or modification thereof, es8 timated on a fair value basis, applying the 

9 guidelines set forth by the Financial Accounting 

10 Standards Board in Financial Accounting 

11 Standards #157, or a successor thereto, exclud12 ing administrative costs and any incidental ef13 fects on governmental receipts or outlays; and 

14 ‘‘(ii) the Treasury discounting component 

15 of such direct loan, loan guarantee, or financial 

16 investment or modification thereof. 

17 ‘‘(D) The Treasury discounting component of a 

18 direct loan shall be the net present value, at the time 

19 when the direct loan is disbursed, of the following 

20 estimated cash flows: 

21 ‘‘(i) Loan disbursements. 

22 ‘‘(ii) Repayments of principal. 

23 ‘‘(iii) Essential preservation expenses, pay24 ments of interest and other payments by or to 

25 the Government over the life of the loan after 


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1 adjusting for estimated defaults, prepayments, 

2 fees, penalties, and other recoveries, including 

3 the effects of changes in loan terms resulting 

4 from the exercise by the borrower of an option 

5 included in the loan contract. 

6 ‘‘(E) The Treasury discounting component of a 

7 loan guarantee shall be the net present value, at the 

8 time when the direct loan is disbursed, of the fol9 lowing estimated cash flows: 

10 ‘‘(i) Payments by the Government to cover 

11 defaults and delinquencies, interests subsidies, 

12 essential preservation expenses, or other pay13 ments. 

14 ‘‘(ii) Payments to the Government includ15 ing origination and other fees, penalties, and re16 coveries, including the effects of changes in loan 

17 terms resulting from the exercise by the guar18 anteed lender of an option included in the loan 

19 guarantee contract, or by the borrower of an 

20 option included in the guaranteed loan contract. 

21 ‘‘(F) The Treasury discounting component of a 

22 financial investment shall be the net present value, 

23 at the time the financial investment is executed, of 

24 the following estimated cash flows: 


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1 ‘‘(i) Payments by the Government includ2 ing essential preservation expenses. 

3 ‘‘(ii) Payments to the Government includ4 ing any dividends, periodic payments, fees, pen5 alties, or recoveries; 

6 Including the effects of changes in investment terms 

7 resulting from the exercise by the non-Federal entity 

8 of an option included in the investment contract. 

9 ‘‘(G) The cost of a modification is the sum of— 

10 ‘‘(i) the difference between the current es11 timate of the Treasury discounting component 

12 of the remaining cash flows under the terms of 

13 a direct loan, loan guarantee, or financial in14 vestment contract, and the current estimate of 

15 the Treasury discounting component of the re16 maining cash flows under the terms of the con17 tract, as modified; and 

18 ‘‘(ii) the difference between the current es19 timate of the risk component of the remaining 

20 cash flows under the terms of a direct loan, 

21 loan guarantee, or financial investment con22 tract, and the current estimate of the risk com23 ponent of the remaining cash flows under the 

24 terms of the contract as modified. 


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1 ‘‘(H) In estimating Treasury discounting com2 ponents, the discount rate shall be the average inter3 est rate on marketable Treasury securities of similar 

4 duration to the cash flows of the direct loan or loan 

5 guarantee for which the estimate is being made. 

6 ‘‘(I) When funds are obligated for a direct loan 

7 or loan guarantee, the estimated cost shall be based 

8 on the current assumptions, adjusted to incorporate 

9 the terms of the loan contract, for the fiscal year in 

10 which the funds are obligated. 

11 ‘‘(8) The term ‘program account’ means the 

12 budget account into which an appropriation to cover 

13 the cost of a direct loan, loan guarantee, or financial 

14 investment program is made and from which such 

15 cost is disbursed to the financing account. 

16 ‘‘(9) The term ‘financing account’ means the 

17 nonbudget account or accounts associated with each 

18 program account which holds balances, receives the 

19 cost payment from the program account, and also 

20 includes all other cash flows to and from the Gov21 ernment resulting from direct loan obligations or 

22 loan guarantee commitments made on or after Octo23 ber 1, 1991, or financial investment commitments 

24 made on or after October 1, 2014. 


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1 ‘‘(10) The term ‘liquidating account’ means the 

2 budget account that includes all cash flows to and 

3 from the Government resulting from direct loan obli4 gations or loan guarantee commitments made prior 

5 to October 1, 1991. These accounts shall be shown 

6 in the budget on a cash basis. 

7 ‘‘(11) The term ‘modification’ means any Gov8 ernment action that alters the estimated cost of an 

9 outstanding direct loan (or direct loan obligation), 

10 an outstanding loan guarantee (or loan guarantee 

11 commitment), or outstanding financial investment 

12 (or financial investment commitment) from the cur13 rent estimate of cash flows. This includes the sale of 

14 loan assets, with or without recourse, and the pur15 chase of guaranteed loans (or direct loan obliga16 tions), loan guarantees (or loan guarantee commit17 ments), financial investments (or financial invest18 ment commitments) such as a change in collection 

19 procedures. 

20 ‘‘(12) The term ‘current’ has the same meaning 

21 as in section 250(c)(9) of the Balanced Budget and 

22 Emergency Deficit Control Act of 1985. 

23 ‘‘(13) The term ‘Director’ means the Director 

24 of the Office of Management and Budget. 


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1 ‘‘(14) The term ‘administrative costs’ means 

2 costs related to program management activities, but 

3 does not include essential preservation expenses. 

4 ‘‘(15) The term ‘essential preservation ex5 penses’ means servicing and other costs that are es6 sential to preserve the value of loan assets or collat7 eral. 

8 ‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 

9 REVIEW. 

10 ‘‘(a) IN GENERAL.—For the executive branch, the 

11 Director shall be responsible for coordinating the esti12 mates required by this title. The Director shall consult 

13 with the agencies that administer direct loan or loan guar14 antee, or financial investment programs. 

15 ‘‘(b) DELEGATION.—The Director may delegate to 

16 agencies authority to make estimates of costs. The delega17 tion of authority shall be based upon written guidelines, 

18 regulations, or criteria consistent with the definitions in 

19 this title. 

20 ‘‘(c) COORDINATION WITH THE CONGRESSIONAL

21 BUDGET OFFICE.—In developing estimation guidelines, 

22 regulations, or criteria to be used by Federal agencies, the 

23 Director shall consult with the Director of the Congres24 sional Budget Office. 


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1 ‘‘(d) IMPROVING COST ESTIMATES.—The Director 

2 and the Director of the Congressional Budget Office shall 

3 coordinate the development of more accurate data on his4 torical performance and prospective risk of direct loan, 

5 loan guarantee, and financial investment programs. They 

6 shall annually review the performance of outstanding di7 rect loans, loan guarantees, and financial investment to 

8 improve estimates of costs. The Office of Management and 

9 Budget and the Congressional Budget Office shall have 

10 access to all agency data that may facilitate the develop11 ment and improvement of estimates of costs. 

12 ‘‘(e) HISTORICAL CREDIT PROGRAMS COSTS.—The 

13 Director shall review, to the extent possible, historical data 

14 and develop the best possible estimates of adjustments 

15 that would convert aggregate historical budget data to 

16 credit reform accounting. 

17 ‘‘SEC. 504. BUDGETARY TREATMENT. 

18 ‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 

19 year 1992, the President’s budget shall reflect the Treas20 ury discounting component of direct loan and loan guar21 antee programs. Beginning with fiscal year 2015, the 

22 President’s budget shall reflect the costs of direct loan, 

23 loan guarantee, and financial investment programs. The 

24 budget shall also include the planned level of new direct 

25 loan obligations, loan guarantee commitments, or financial 


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1 investment commitments associated with each appropria2 tions request. 

3 ‘‘(b) APPROPRIATIONS REQUIRED.—Notwithstanding 

4 any other provision of law, new direct loan obligations may 

5 be incurred and new loan guarantee commitments may be 

6 made of fiscal year 1992 and thereafter and new financial 

7 investment commitments may be made for fiscal year 

8 2015 and thereafter only to the extent that— 

9 ‘‘(1) new budget authority to cover their costs 

10 is provided in advance in an appropriations Act; 

11 ‘‘(2) a limitation on the use of funds otherwise 

12 available for the cost of a direct loan, loan guar13 antee, or financial investment program has been pro14 vided in advance in an appropriations Act; or 

15 ‘‘(3) authority is otherwise provided in appro16 priation Acts. 

17 ‘‘(c) EXEMPTION FOR MANDATORY PROGRAMS.— 

18 Subsections (b) and (e) shall not apply to a direct loan 

19 or loan guarantee program that— 

20 ‘‘(1) constitutes an entitlement (such as the 

21 guaranteed student loan program or the veteran’s 

22 home loan guaranty program); or 

23 ‘‘(2) all existing credit programs of the Com24 modity Credit Corporation on the date of enactment 

25 of this title. 


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1 ‘‘(d) BUDGET ACCOUNTING.— 

2 ‘‘(1) The authority to incur new direct loan ob3 ligations, make new loan guarantee commitments, 

4 make new financial investment commitments, or 

5 modify outstanding direct loans (or direct loan obli6 gations), loan guarantees (or loan guarantee com7 mitments), financial investments (or financial invest8 ment commitments) shall constitute new budget au9 thority in an amount equal to the cost of the direct 

10 loan or loan guarantee in the fiscal year in which 

11 definite authority becomes available or indefinite au12 thority is used. Such budget authority shall con13 stitute an obligation of the program account to pay 

14 to the financing account. 

15 ‘‘(2) The outlays resulting from new budget au16 thority for the cost of direct loans, loan guarantees, 

17 or financial investment described in paragraph (1) 

18 shall be paid from the program account into the fi19 nancing account and recorded in the fiscal year in 

20 which the direct loan, the guaranteed loan, or finan21 cial investment is disbursed or its costs altered. 

22 ‘‘(3) All collections and payments of the financ23 ing accounts shall be a means of financing. 

24 ‘‘(e) MODIFICATIONS.—An outstanding direct loan 

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1 antee commitment), or financial investment (or financial 

2 investment commitment) shall not be modified in a man3 ner that increases its costs unless budget authority for the 

4 additional cost has been provided in advance in an appro5 priations Act. 

6 ‘‘(f) RE-ESTIMATES.—When the estimated cost for a 

7 group of direct loans, loan guarantees, or financial invest8 ments for a given program made in a single fiscal year 

9 is re-estimated in a subsequent year, the difference be10 tween the re-estimated cost and the previous cost estimate 

11 shall be displayed as a distinct and separately identified 

12 subaccount in the program account as a change in pro13 gram costs and a change in net interest. There is hereby 

14 provided permanent indefinite authority for these re-esti15 mates. 

16 ‘‘(g) ADMINISTRATIVE EXPENSES.—All funding for 

17 an agency’s administrative costs associated with a direct 

18 loan, loan guarantee, or financial investment program 

19 shall be displayed as distinct and separately identified sub20 accounts within the same budget account as the program’s 

21 cost. 

22 ‘‘SEC. 505. AUTHORIZATIONS. 

23 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS FOR

24 COSTS.—There are authorized to be appropriated to each 

25 Federal agency authorized to make direct loan obligations, 


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1 loan guarantee commitments, or financial investment com2 mitments such sums as may be necessary to pay the cost 

3 associated with such direct loan obligations, loan guar4 antee commitments, or financial investment commitments. 

5 ‘‘(b) AUTHORIZATION FOR FINANCING ACCOUNTS.— 

6 In order to implement the accounting required by this 

7 title, the President is authorized to establish such non8 budgetary accounts as may be appropriate. 

9 ‘‘(c) TREASURY TRANSACTIONS WITH THE FINANC10 ING ACCOUNTS.— 

11 ‘‘(1) IN GENERAL.—The Secretary of the 

12 Treasury shall borrow from, receive from, lend to, or 

13 pay to the financing accounts such amounts as may 

14 be appropriate. The Secretary of the Treasury may 

15 prescribe forms and denominations, maturities, and 

16 terms and conditions for the transactions described 

17 in the preceding sentence, except that the rate of in18 terest charged by the Secretary on lending to financ19 ing accounts (including amounts treated as lending 

20 to financing accounts by the Federal Financing 

21 Bank (hereinafter in this subsection referred to as 

22 the ‘Bank’) pursuant to section 405(b)) and the rate 

23 of interest paid to financing accounts on uninvested 

24 balances in financing accounts shall be the same as 

25 the rate determined pursuant to section 502(7)(H). 


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1 ‘‘(2) LOANS.—For guaranteed loans financed 

2 by the Bank and treated as direct loans by a Fed3 eral agency pursuant to section 406(b)(1), any fee 

4 or interest surcharge (the amount by which the in5 terest rate charged exceeds the rate determined pur6 suant to section 502(7)(H) that the Bank charges to 

7 a private borrower pursuant to section 6(c) of the 

8 Federal Financing Bank Act of 1973 shall be con9 sidered a cash flow to the Government for the pur10 poses of determining the cost of the direct loan pur11 suant to section 502(7). All such amounts shall be 

12 credited to the appropriate financing account. 

13 ‘‘(3) REIMBURSEMENT.—The Bank is author14 ized to require reimbursement from a Federal agen15 cy to cover the administrative expenses of the Bank 

16 that are attributable to the direct loans financed for 

17 that agency. All such payments by an agency shall 

18 be considered administrative expenses subject to sec19 tion 504(g). This subsection shall apply to trans20 actions related to direct loan obligations or loan 

21 guarantee commitments made on or after October 1, 

22 1991. 

23 ‘‘(4) AUTHORITY.—The authorities provided in 

24 this subsection shall not be construed to supersede 

25 or override the authority of the head of a Federal 


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1 agency to administer and operate a direct loan or 

2 loan guarantee program. 

3 ‘‘(5) TITLE 31.—All of the transactions pro4 vided in the subsection shall be subject to the provi5 sions of subchapter II of chapter 15 of title 31, 

6 United States Code. 

7 ‘‘(6) TREATMENT OF CASH BALANCES.—Cash 

8 balances of the financing accounts in excess of cur9 rent requirements shall be maintained in a form of 

10 uninvested funds and the Secretary of the Treasury 

11 shall pay interest on these funds. The Secretary of 

12 the Treasury shall charge (or pay if the amount is 

13 negative) financing accounts an amount equal to the 

14 risk component for a direct loan, loan guarantee, or 

15 financial investment or modification thereof. Such 

16 amount received by the Secretary of the Treasury 

17 shall be a means of financing and shall not be con18 sidered a cash flow of the Government for the pur19 poses of section 502(7). 

20 ‘‘(d) AUTHORIZATION FOR LIQUIDATING AC21 COUNTS.—(1) Amounts in liquidating accounts shall be 

22 available only for payments resulting from direct loan obli23 gations or loan guarantee commitments made prior to Oc24 tober 1, 1991, for— 


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1 ‘‘(A) interest payments and principal repay2 ments to the Treasury or the Federal Financing 

3 Bank for amounts borrowed; 

4 ‘‘(B) disbursements of loans; 

5 ‘‘(C) default and other guarantee claim pay6 ments; 

7 ‘‘(D) interest supplement payments; 

8 ‘‘(E) payments for the costs of foreclosing, 

9 managing, and selling collateral that are capitalized 

10 or routinely deducted from the proceeds of sales; 

11 ‘‘(F) payments to financing accounts when re12 quired for modifications; 

13 ‘‘(G) administrative costs and essential preser14 vation expenses, if— 

15 ‘‘(i) amounts credited to the liquidating ac16 count would have been available for Administra17 tive costs and essential preservation expenses 

18 under a provision of law in effect prior to Octo19 ber 1, 1991; and 

20 ‘‘(ii) no direct loan obligation or loan guar21 antee commitment has been made, or any modi22 fication of a direct loan or loan guarantee has 

23 been made, since September 30, 1991; or 


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1 ‘‘(H) such other payments as are necessary for 

2 the liquidation of such direct loan obligations and 

3 loan guarantee commitments. 

4 ‘‘(2) Amounts credited to liquidating accounts in any 

5 year shall be available only for payments required in that 

6 year. Any unobligated balances in liquidating accounts at 

7 the end of a fiscal year shall be transferred to miscella8 neous receipts as soon as practicable after the end of the 

9 fiscal year. 

10 ‘‘(3) If funds in liquidating accounts are insufficient 

11 to satisfy obligations and commitments of such accounts, 

12 there is hereby provided permanent, indefinite authority 

13 to make any payments required to be made on such obliga14 tions and commitments. 

15 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS FOR IM16 PLEMENTATION EXPENSES.—There are authorized to be 

17 appropriated to existing accounts such sums as may be 

18 necessary for salaries and expenses to carry out the re19 sponsibilities under this title. 

20 ‘‘(f) REINSURANCE.—Nothing in this title shall be 

21 construed as authorizing or requiring the purchase of in22 surance or reinsurance on a direct loan or loan guarantee 

23 from private insurers. If any such reinsurance for a direct 

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1 surance and any recoveries to the Government shall be in2 cluded in the calculation of the cost. 

3 ‘‘(g) ELIGIBILITY AND ASSISTANCE.—Nothing in this 

4 title shall be construed to change the authority or the re5 sponsibility of a Federal agency to determine the terms 

6 and conditions of eligibility for, or the amount of assist7 ance provided by a direct loan or a loan guarantee. 

8 ‘‘SEC. 506. TREATMENT OF DEPOSIT INSURANCE AND AGEN9 CIES AND OTHER INSURANCE PROGRAMS. 

10 ‘‘This title shall not apply to the credit or insurance 

11 activities of the Federal Deposit Insurance Corporation, 

12 National Credit Union Administration, Resolution Trust 

13 Corporation, Pension Benefit Guaranty Corporation, Na14 tional Flood Insurance, National Insurance Development 

15 Fund, Crop Insurance, or Tennessee Valley Authority. 

16 ‘‘SEC. 507. EFFECT ON OTHER LAWS. 

17 ‘‘(a) EFFECT ON OTHER LAWS.—This title shall su18 persede, modify, or repeal any provision of law enacted 

19 prior to the date of enactment of this title to the extent 

20 such provision is inconsistent with this title. Nothing in 

21 this title shall be construed to establish a credit limitation 

22 on any Federal loan or loan guarantee program. 

23 ‘‘(b) CREDITING OF COLLECTIONS.—Collections re24 sulting from direct loans obligated or loan guarantees 

25 committed prior to October 1, 1991, shall be credited to 


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1 the liquidating accounts of Federal agencies. Amounts so 

2 credited shall be available, to the same extent that they 

3 were available prior to the date of enactment of this title, 

4 to liquidate obligations arising from such direct loans obli5 gated or loan guarantees committed prior to October 1, 

6 1991, including repayment of any obligations held by the 

7 Secretary of the Treasury or the Federal Financing Bank. 

8 The unobligated balances of such accounts that are in ex9 cess of current needs shall be transferred to the general 

10 fund of the Treasury. Such transfers shall be made from 

11 time to time but, at least once each year.’’. 

12 SEC. 5. NO CHANGES IN MANDATORY PROGRAMS IN AP13 PROPRIATION BILLS. 

14 Section 302(f) of the Congressional Budget Act of 

15 1974 is amended to read as follows: 

16 ‘‘(f) LEGISLATION SUBJECT TO POINT OF ORDER.— 

17 ‘‘(1) IN THE HOUSE OF REPRESENTATIVES.— 

18 (A) After the Congress has completed action on a 

19 concurrent resolution on the budget for a fiscal year, 

20 it shall not be in order in the House of Representa21 tives to consider any bill, joint resolution, or amend22 ment providing new budget authority or outlays for 

23 any fiscal year, or any conference report on any such 

24 bill or joint resolution, if the enactment of such bill 

25 or resolution as reported, the adoption and enactVerDate Mar 15 2010 02:47 Feb 01, 2012 Jkt 019200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H3844.IH H3844

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1 ment of such amendment, or the enactment of such 

2 bill or resolution in the form recommended in such 

3 conference report, would cause— 

4 ‘‘(i) the applicable allocation of new budget 

5 authority or outlays made under subsection (a) 

6 or (b) for the first fiscal year or the total of fis7 cal years to be exceeded, or 

8 ‘‘(ii) appropriations legislation to contain a 

9 provision that would have been estimated as af10 fecting direct spending or receipts under section 

11 252 of the Balanced Budget and Emergency 

12 Deficit Control Act of 1985 were it included in 

13 legislation other than appropriations legislation, 

14 if such provision does not result in net outlay 

15 savings over the total of the period of the cur16 rent year, the budget year, and all fiscal years 

17 covered under the most recently adopted con18 current resolution on the budget. 

19 ‘‘(B) In the House of Representatives, it shall 

20 not be in order to consider a rule or order that 

21 waives the application of subparagraph (A). As dis22 position of a point of order under this subparagraph, 

23 the Chair shall put the question of consideration 

24 with respect to the rule or order. The question of 

25 consideration shall be debatable for 10 minutes by 


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1 the Member initiating the point of order and for 10 

2 minutes by an opponent, but shall otherwise be de3 cided without intervening motion except one that the 

4 House adjourn. 

5 ‘‘(2) IN THE SENATE.—After a concurrent reso6 lution on the budget is agreed to, it shall not be in 

7 order in the Senate to consider any bill or joint reso8 lution, amendment, motion, or conference report 

9 that— 

10 ‘‘(A) in the case of any committee except 

11 the Committee on Appropriations, would cause 

12 the applicable allocation of new budget author13 ity or outlays under subsection (a) for the first 

14 fiscal year or the total of fiscal years to be ex15 ceeded; or 

16 ‘‘(B) in the case of the Committee on Ap17 propriations would— 

18 ‘‘(i) cause the applicable suballocation 

19 of new budget authority or outlays under 

20 subsection (b) to be exceeded; or 

21 ‘‘(ii) includes one or more provisions 

22 that would have been estimated as affect23 ing direct spending or receipts under sec24 tion 252 of the Balanced Budget and 

25 Emergency Deficit Control Act of 1985 


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1 were they included in legislation other than 

2 appropriations legislation, if such provision 

3 does not result in net outlay savings over 

4 the total of the period of the current year, 

5 the budget year, and all fiscal years cov6 ered under the most recently adopted con7 current resolution on the budget.’’. 

8 SEC. 6. DON’T COUNT RESCISSIONS THAT DON’T SAVE 

9 MONEY. 

10 Section 312(a) of the Congressional Budget Act of 

11 1974 (2 U.S.C. 643(a)) is amended— 

12 (1) by striking ‘‘For purposes’’ and inserting 

13 the following: 

14 ‘‘(1) IN GENERAL.—For purposes;’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(2) EXCLUSION.—In making determinations 

17 under paragraph (1), the committee shall not count 

18 rescissions of budget authority that do not result in 

19 outlay savings over the period of fiscal years covered 

20 by the concurrent resolution on the budget.’’. 

21 SEC. 7. PROHIBITION ON STEP INCREASES FOR FEDERAL 

22 EMPLOYEE COMPENSATION. 

23 (a) PERIODIC STEP INCREASES.—Notwithstanding 

24 any other provision of law, no periodic step increase under 

25 section 5335 of title 5, United States Code, which (but 


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1 for this subsection) would otherwise take effect during the 

2 period beginning on the date of enactment of this Act and 

3 ending on December 31, 2012, shall be made. 

4 (b) ADDITIONAL STEP INCREASES.—The head of an 

5 agency may not grant additional step increases under sec6 tion 5336 of title 5, United States Code, during the period 

7 beginning on the date of enactment of this Act and ending 

8 on December 31, 2012. 

9 SEC. 8. POINT OF ORDER AGAINST ADVANCE APPROPRIA10 TIONS. 

11 (a) IN GENERAL.— 

12 (1) POINT OF ORDER.—Except as provided in 

13 subsection (b), it shall not be in order in the House 

14 of Representatives or the Senate to consider any bill, 

15 joint resolution, motion, amendment, or conference 

16 report that would provide an advance appropriation. 

17 (2) DEFINITION.—In this section, the term 

18 ‘‘advance appropriation’’ means any new budget au19 thority provided in a bill or joint resolution making 

20 appropriations for fiscal year 2012 that first be21 comes available for any fiscal year after 2012, or 

22 any new budget authority provided in a bill or joint 

23 resolution making general appropriations or con24 tinuing appropriations for each of the budget years 


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1 2012 through 2022, that first becomes available for 

2 any fiscal year after the budget year. 

3 (b) EXCEPTIONS.—Advance appropriations may be 

4 provided as follows: 

5 (1) For fiscal years 2013 through 2022 in an 

6 aggregate amount not to exceed $28,852,000,000 in 

7 new budget authority in each year for the following 

8 programs, projects, activities, or accounts: 

9 (A) Employment and Training Administra10 tion. 

11 (B) Job Corps. 

12 (C) Education for the Disadvantaged. 

13 (D) School Improvement. 

14 (E) Children and Family Services (Head 

15 Start). 

16 (F) Special Education. 

17 (G) Career, Technical, and Adult Edu18 cation. 

19 (H) Financial Services and General Gov20 ernment: Payment to Postal Service. 

21 (I) Transportation, Housing and Urban 

22 Development: Tenant-based Rental Assistance 

23 Project-based Rental Assistance. 

24 (2) For the Corporation for Public Broad25 casting. 


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1 (3) For the Department of Veterans Affairs for 

2 the Medical Services, Medical Support and Compli3 ance, and Medical Facilities accounts of the Vet4 erans Health Administration. 

5 (c) SUPERMAJORITY WAIVER AND APPEAL.— 

6 (1) WAIVER.—In the House of Representatives 

7 or the Senate, subsection (a)(1) may be waived or 

8 suspended only by an affirmative vote of three-fifths 

9 of the Members, duly chosen and sworn. 

10 (2) APPEAL.—In the Senate, an affirmative 

11 vote of three-fifths of the Members of the Senate, 

12 duly chosen and sworn, shall be required to sustain 

13 an appeal of the ruling of the Chair on a point of 

14 order raised under subsection (a). 

15 (d) FORM OF POINT OF ORDER.—A point of order 

16 under subsection (a) may be raised by any Member as pro17 vided in section 313(e) of the Congressional Budget Act 

18 of 1974. 

19 (e) RULES OR ORDERS IN THE HOUSE OF REP20 RESENTATIVES.—In the House of Representatives, it shall 

21 not be in order to consider a rule or order that waives 

22 the application of subsection (a)(1). As disposition of a 

23 point of order under this subsection, the Chair shall put 

24 the question of consideration with respect to the rule or 

25 order. The question of consideration shall be debatable for 


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1 10 minutes by the Member initiating the point of order 

2 and for 10 minutes by an opponent, but shall otherwise 

3 be decided without intervening motion except one that the 

4 House adjourn. 

5 (f) CONFERENCE REPORTS.—When the House of 

6 Representatives or the Senate is considering a conference 

7 report on, or an amendment between the Houses in rela8 tion to, a bill, upon a point of order being made by any 

9 Member pursuant to this section, and such point of order 

10 being sustained, such material contained in such con11 ference report shall be deemed stricken, and the applicable 

12 House shall proceed to consider the question of whether 

13 it shall recede from its amendment and concur with a fur14 ther amendment, or concur in the amendment of the other 

15 House with a further amendment, as the case may be, 

16 which further amendment shall consist of only that portion 

17 of the conference report or amendment, as the case may 

18 be, not so stricken. Any such motion in the House of Rep19 resentatives or Senate shall be debatable. In any case in 

20 which such point of order is sustained against a conference 

21 report (or House or Senate amendment, as applicable, de22 rived from such conference report by operation of this sub23 section), no further amendment shall be in order. 


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1 SEC. 9. PROHIBIT TIMING SHIFTS. 

2 (a) IN GENERAL.—In the House of Representatives 

3 or the Senate, for purposes of enforcement of points of 

4 order established under the Congressional Budget Act of 

5 1974, S. Con. Res. 21 (110th Congress; Fiscal Year 2008 

6 Budget Resolution), S. Con. Res. 70 (110th Congress; 

7 Fiscal Year 2009 Budget Resolution), S. Con. Res. 13 

8 (111th Congress; Fiscal Year 2010 Budget Resolution), 

9 and subsequent concurrent resolutions on the budget, a 

10 provision in any bill, resolution, amendment, motion, 

11 amendment between houses, or conference report that 

12 shifts outlays or revenues from one year to another by a 

13 date change to act as an offset for other provisions that 

14 increase the deficit for a time period shall not count. 

15 (b) RULES OR ORDERS IN THE HOUSE OF REP16 RESENTATIVES.—In the House of Representatives, it shall 

17 not be in order to consider a rule or order that waives 

18 the application of subsection (a). As disposition of a point 

19 of order under this subsection, the Chair shall put the 

20 question of consideration with respect to the rule or order. 

21 The question of consideration shall be debatable for 10 

22 minutes by the Member initiating the point of order and 

23 for 10 minutes by an opponent, but shall otherwise be de24 cided without intervening motion except one that the 

25 House adjourn. 


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1 SEC. 10. BUDGET SCORING RULE RELATING TO TRANSFERS 

2 FROM THE GENERAL FUND OF THE TREAS3 URY TO THE HIGHWAY TRUST FUND THAT IN4 CREASE PUBLIC INDEBTEDNESS. 

5 (a) IN GENERAL.—In the House of Representatives 

6 or the Senate, for purposes of enforcement of points of 

7 order established under the Congressional Budget Act of 

8 1974, S. Con. Res. 21 (110th Congress; Fiscal Year 2008 

9 Budget Resolution), S. Con. Res. 70 (110th Congress; 

10 Fiscal Year 2009 Budget Resolution), S. Con. Res. 13 

11 (111th Congress; Fiscal Year 2010 Budget Resolution), 

12 and subsequent concurrent resolutions on the budget, a 

13 bill, resolution, amendment, motion, amendment between 

14 houses, or conference report that transfers funds from the 

15 general fund of the Treasury to the Highway Trust Fund 

16 and that increases the level of indebtedness that is subject 

17 to the current applicable statutory public debt limit shall 

18 be counted by the chairman of the Committee on the 

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

20 applicable, as new budget authority and outlays equal to 

21 the amount of the transfer in the fiscal year the transfer 

22 occurs. 

23 (b) RULES OR ORDERS IN THE HOUSE OF REP24 RESENTATIVES.—In the House of Representatives, it shall 

25 not be in order to consider a rule or order that waives 

26 the application of subsection (a). As disposition of a point 


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1 of order under this subsection, the Chair shall put the 

2 question of consideration with respect to the rule or order. 

3 The question of consideration shall be debatable for 10 

4 minutes by the Member initiating the point of order and 

5 for 10 minutes by an opponent, but shall otherwise be de6 cided without intervening motion except one that the 

7 House adjourn. 

Æ 


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