PUBLIC LAW 112–25—AUG. 2, 2011 

BUDGET CONTROL ACT OF 2011 


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125 STAT. 240 PUBLIC LAW 112–25—AUG. 2, 2011 

Public Law 112–25 

112th Congress 

An Act 

To provide for budget control. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Budget Control 

Act of 2011’’. 

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

is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Severability. 

TITLE I—TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER 

Sec. 101. Enforcing discretionary spending limits. 

Sec. 102. Definitions. 

Sec. 103. Reports and orders. 

Sec. 104. Expiration. 

Sec. 105. Amendments to the Congressional Budget and Impoundment Control Act 

of 1974. 

Sec. 106. Senate budget enforcement. 

TITLE II—VOTE ON THE BALANCED BUDGET AMENDMENT 

Sec. 201. Vote on the balanced budget amendment. 

Sec. 202. Consideration by the other House. 

TITLE III—DEBT CEILING DISAPPROVAL PROCESS 

Sec. 301. Debt ceiling disapproval process. 

Sec. 302. Enforcement of budget goal. 

TITLE IV—JOINT SELECT COMMITTEE ON DEFICIT REDUCTION 

Sec. 401. Establishment of Joint Select Committee. 

Sec. 402. Expedited consideration of joint committee recommendations. 

Sec. 403. Funding. 

Sec. 404. Rulemaking. 

TITLE V—PELL GRANT AND STUDENT LOAN PROGRAM CHANGES 

Sec. 501. Federal Pell grants. 

Sec. 502. Termination of authority to make interest subsidized loans to graduate 

and professional students. 

Sec. 503. Termination of direct loan repayment incentives. 

Sec. 504. Inapplicability of title IV negotiated rulemaking and master calendar exception. 

SEC. 2. SEVERABILITY. 

If any provision of this Act, or any application of such provision 

to any person or circumstance, is held to be unconstitutional, the 

remainder of this Act and the application of this Act to any other 

person or circumstance shall not be affected. 

2 USC 900 note. 

2 USC 900 note. 

Budget Control 

Act of 2011. 

Aug. 2, 2011 

[S. 365] 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 241 

TITLE I—TEN-YEAR DISCRETIONARY 

CAPS WITH SEQUESTER 

SEC. 101. ENFORCING DISCRETIONARY SPENDING LIMITS. 

Section 251 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended to read as follows: 

‘‘SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS. 

‘‘(a) ENFORCEMENT.— ‘‘(1) SEQUESTRATION.—Within 15 calendar days after Congress adjourns to end a session there shall be a sequestration 

to eliminate a budget-year breach, if any, within any category. 

‘‘(2) ELIMINATING A BREACH.—Each non-exempt account 

within a category shall be reduced by a dollar amount calculated 

by multiplying the enacted level of sequestrable budgetary 

resources in that account at that time by the uniform percentage necessary to eliminate a breach within that category. 

‘‘(3) MILITARY PERSONNEL.—If the President uses the 

authority to exempt any personnel account from sequestration 

under section 255(f), each account within subfunctional category 

051 (other than those military personnel accounts for which 

the authority provided under section 255(f) has been exercised) 

shall be further reduced by a dollar amount calculated by 

multiplying the enacted level of non-exempt budgetary 

resources in that account at that time by the uniform percentage necessary to offset the total dollar amount by which outlays 

are not reduced in military personnel accounts by reason of 

the use of such authority. 

‘‘(4) PART-YEAR APPROPRIATIONS.—If, on the date specified 

in paragraph (1), there is in effect an Act making or continuing 

appropriations for part of a fiscal year for any budget account, 

then the dollar sequestration calculated for that account under 

paragraphs (2) and (3) shall be subtracted from— 

‘‘(A) the annualized amount otherwise available by law 

in that account under that or a subsequent part-year appropriation; and 

‘‘(B) when a full-year appropriation for that account 

is enacted, from the amount otherwise provided by the 

full-year appropriation for that account. 

‘‘(5) LOOK-BACK.—If, after June 30, an appropriation for 

the fiscal year in progress is enacted that causes a breach 

within a category for that year (after taking into account any 

sequestration of amounts within that category), the discretionary spending limits for that category for the next fiscal 

year shall be reduced by the amount or amounts of that breach. 

‘‘(6) WITHIN-SESSION SEQUESTRATION.—If an appropriation 

for a fiscal year in progress is enacted (after Congress adjourns 

to end the session for that budget year and before July 1 

of that fiscal year) that causes a breach within a category 

for that year (after taking into account any prior sequestration 

of amounts within that category), 15 days later there shall 

be a sequestration to eliminate that breach within that category 

following the procedures set forth in paragraphs (2) through 

(4). 

‘‘(7) ESTIMATES.— 

Deadline. 

Deadline. 

2 USC 901. 


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125 STAT. 242 PUBLIC LAW 112–25—AUG. 2, 2011 

‘‘(A) CBO ESTIMATES.—As soon as practicable after 

Congress completes action on any discretionary appropriation, CBO, after consultation with the Committees on the 

Budget of the House of Representatives and the Senate, 

shall provide OMB with an estimate of the amount of 

discretionary new budget authority and outlays for the 

current year, if any, and the budget year provided by 

that legislation. 

‘‘(B) OMB ESTIMATES AND EXPLANATION OF DIF- FERENCES.—Not later than 7 calendar days (excluding 

Saturdays, Sundays, and legal holidays) after the date 

of enactment of any discretionary appropriation, OMB shall 

transmit a report to the House of Representatives and 

to the Senate containing the CBO estimate of that legislation, an OMB estimate of the amount of discretionary new 

budget authority and outlays for the current year, if any, 

and the budget year provided by that legislation, and an 

explanation of any difference between the 2 estimates. 

If during the preparation of the report OMB determines 

that there is a significant difference between OMB and 

CBO, OMB shall consult with the Committees on the 

Budget of the House of Representatives and the Senate 

regarding that difference and that consultation shall 

include, to the extent practicable, written communication 

to those committees that affords such committees the opportunity to comment before the issuance of the report. 

‘‘(C) ASSUMPTIONS AND GUIDELINES.—OMB estimates 

under this paragraph shall be made using current economic 

and technical assumptions. OMB shall use the OMB estimates transmitted to the Congress under this paragraph. 

OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the Committees on the 

Budget of the House of Representatives and the Senate, 

CBO, and OMB. 

‘‘(D) ANNUAL APPROPRIATIONS.—For purposes of this 

paragraph, amounts provided by annual appropriations 

shall include any discretionary appropriations for the current year, if any, and the budget year in accounts for 

which funding is provided in that legislation that result 

from previously enacted legislation. 

‘‘(b) ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.— 

‘‘(1) CONCEPTS AND DEFINITIONS.—When the President submits the budget under section 1105 of title 31, United States 

Code, OMB shall calculate and the budget shall include adjustments to discretionary spending limits (and those limits as 

cumulatively adjusted) for the budget year and each outyear 

to reflect changes in concepts and definitions. Such changes 

shall equal the baseline levels of new budget authority and 

outlays using up-to-date concepts and definitions, minus those 

levels using the concepts and definitions in effect before such 

changes. Such changes may only be made after consultation 

with the Committees on Appropriations and the Budget of 

the House of Representatives and the Senate, and that consultation shall include written communication to such committees 

that affords such committees the opportunity to comment before 

official action is taken with respect to such changes. 

Consultation. 

Deadline. 

Reports. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 243 

‘‘(2) SEQUESTRATION REPORTS.—When OMB submits a 

sequestration report under section 254(e), (f), or (g) for a fiscal 

year, OMB shall calculate, and the sequestration report and 

subsequent budgets submitted by the President under section 

1105(a) of title 31, United States Code, shall include adjustments to discretionary spending limits (and those limits as 

adjusted) for the fiscal year and each succeeding year, as follows: 

‘‘(A) EMERGENCY APPROPRIATIONS; OVERSEAS CONTIN- GENCY OPERATIONS/GLOBAL WAR ON TERRORISM.—If, for any 

fiscal year, appropriations for discretionary accounts are 

enacted that— 

‘‘(i) the Congress designates as emergency requirements in statute on an account by account basis and 

the President subsequently so designates, or 

‘‘(ii) the Congress designates for Overseas Contingency Operations/Global War on Terrorism in statute 

on an account by account basis and the President 

subsequently so designates, 

the adjustment shall be the total of such appropriations 

in discretionary accounts designated as emergency requirements or for Overseas Contingency Operations/Global War 

on Terrorism, as applicable. 

‘‘(B) CONTINUING DISABILITY REVIEWS AND REDETERMINATIONS.—(i) If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an 

amount for continuing disability reviews under titles II 

and XVI of the Social Security Act and for the cost associated with conducting redeterminations of eligibility under 

title XVI of the Social Security Act, then the adjustments 

for that fiscal year shall be the additional new budget 

authority provided in that Act for such expenses for that 

fiscal year, but shall not exceed— 

‘‘(I) for fiscal year 2012, $623,000,000 in additional 

new budget authority; ‘‘(II) for fiscal year 2013, $751,000,000 in additional 

new budget authority; 

‘‘(III) for fiscal year 2014, $924,000,000 in additional new budget authority; 

‘‘(IV) for fiscal year 2015, $1,123,000,000 in additional new budget authority; 

‘‘(V) for fiscal year 2016, $1,166,000,000 in additional new budget authority; 

‘‘(VI) for fiscal year 2017, $1,309,000,000 in additional new budget authority; 

‘‘(VII) for fiscal year 2018, $1,309,000,000 in additional new budget authority; 

‘‘(VIII) for fiscal year 2019, $1,309,000,000 in additional new budget authority; 

‘‘(IX) for fiscal year 2020, $1,309,000,000 in additional new budget authority; and 

‘‘(X) for fiscal year 2021, $1,309,000,000 in additional new budget authority. 

‘‘(ii) As used in this subparagraph— 

‘‘(I) the term ‘continuing disability reviews’ means 

continuing disability reviews under sections 221(i) and 

1614(a)(4) of the Social Security Act; 

Definitions. 


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125 STAT. 244 PUBLIC LAW 112–25—AUG. 2, 2011 

‘‘(II) the term ‘redetermination’ means redetermination of eligibility under sections 1611(c)(1) and 

1614(a)(3)(H) of the Social Security Act; and 

‘‘(III) the term ‘additional new budget authority’ 

means the amount provided for a fiscal year, in excess 

of $273,000,000, in an appropriation Act and specified 

to pay for the costs of continuing disability reviews 

and redeterminations under the heading ‘Limitation 

on Administrative Expenses’ for the Social Security 

Administration. 

‘‘(C) HEALTH CARE FRAUD AND ABUSE CONTROL.—(i) 

If a bill or joint resolution making appropriations for a 

fiscal year is enacted that specifies an amount for the 

health care fraud abuse control program at the Department 

of Health and Human Services (75–8393–0–7–571), then 

the adjustments for that fiscal year shall be the amount 

of additional new budget authority provided in that Act 

for such program for that fiscal year, but shall not exceed— ‘‘(I) for fiscal year 2012, $270,000,000 in additional 

new budget authority; ‘‘(II) for fiscal year 2013, $299,000,000 in additional 

new budget authority; ‘‘(III) for fiscal year 2014, $329,000,000 in additional new budget authority; ‘‘(IV) for fiscal year 2015, $361,000,000 in additional new budget authority; ‘‘(V) for fiscal year 2016, $395,000,000 in additional 

new budget authority; 

‘‘(VI) for fiscal year 2017, $414,000,000 in additional new budget authority; 

‘‘(VII) for fiscal year 2018, $434,000,000 in additional new budget authority; 

‘‘(VIII) for fiscal year 2019, $454,000,000 in additional new budget authority; 

‘‘(IX) for fiscal year 2020, $475,000,000 in additional new budget authority; and 

‘‘(X) for fiscal year 2021, $496,000,000 in additional 

new budget authority. 

‘‘(ii) As used in this subparagraph, the term ‘additional 

new budget authority’ means the amount provided for a 

fiscal year, in excess of $311,000,000, in an appropriation 

Act and specified to pay for the costs of the health care 

fraud and abuse control program. 

‘‘(D) DISASTER FUNDING.— 

‘‘(i) If, for fiscal years 2012 through 2021, appropriations for discretionary accounts are enacted that 

Congress designates as being for disaster relief in 

statute, the adjustment for a fiscal year shall be the 

total of such appropriations for the fiscal year in discretionary accounts designated as being for disaster relief, 

but not to exceed the total of— 

‘‘(I) the average funding provided for disaster 

relief over the previous 10 years, excluding the 

highest and lowest years; and 

‘‘(II) the amount, for years when the enacted 

new discretionary budget authority designated as 

being for disaster relief for the preceding fiscal 

Definition. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 245 

year was less than the average as calculated in 

subclause (I) for that fiscal year, that is the difference between the enacted amount and the allowable adjustment as calculated in such subclause 

for that fiscal year. 

‘‘(ii) OMB shall report to the Committees on Appropriations and Budget in each House the average calculated pursuant to clause (i)(II), not later than 30 

days after the date of the enactment of the Budget 

Control Act of 2011. 

‘‘(iii) For the purposes of this subparagraph, the 

term ‘disaster relief’ means activities carried out pursuant to a determination under section 102(2) of the 

Robert T. Stafford Disaster Relief and Emergency 

Assistance Act (42 U.S.C. 5122(2)). 

‘‘(iv) Appropriations considered disaster relief 

under this subparagraph in a fiscal year shall not 

be eligible for adjustments under subparagraph (A) 

for the fiscal year. 

‘‘(c) DISCRETIONARY SPENDING LIMIT.—As used in this part, 

the term ‘discretionary spending limit’ means— 

‘‘(1) with respect to fiscal year 2012— 

‘‘(A) for the security category, $684,000,000,000 in new 

budget authority; and 

‘‘(B) for the nonsecurity category, $359,000,000,000 in 

new budget authority; 

‘‘(2) with respect to fiscal year 2013— 

‘‘(A) for the security category, $686,000,000,000 in new 

budget authority; and 

‘‘(B) for the nonsecurity category, $361,000,000,000 in 

new budget authority; 

‘‘(3) with respect to fiscal year 2014, for the discretionary 

category, $1,066,000,000,000 in new budget authority; 

‘‘(4) with respect to fiscal year 2015, for the discretionary 

category, $1,086,000,000,000 in new budget authority; 

‘‘(5) with respect to fiscal year 2016, for the discretionary 

category, $1,107,000,000,000 in new budget authority; 

‘‘(6) with respect to fiscal year 2017, for the discretionary 

category, $1,131,000,000,000 in new budget authority; 

‘‘(7) with respect to fiscal year 2018, for the discretionary 

category, $1,156,000,000,000 in new budget authority; 

‘‘(8) with respect to fiscal year 2019, for the discretionary 

category, $1,182,000,000,000 in new budget authority; 

‘‘(9) with respect to fiscal year 2020, for the discretionary 

category, $1,208,000,000,000 in new budget authority; and 

‘‘(10) with respect to fiscal year 2021, for the discretionary 

category, $1,234,000,000,000 in new budget authority; 

as adjusted in strict conformance with subsection (b).’’. 

SEC. 102. DEFINITIONS. 

Section 250(c) of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended as follows: 

(1) Strike paragraph (4) and insert the following new paragraph: 

‘‘(4)(A) The term ‘nonsecurity category’ means all discretionary appropriations not included in the security category 

defined in subparagraph (B). 

2 USC 900. 

Definition. 

Definition. 


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125 STAT. 246 PUBLIC LAW 112–25—AUG. 2, 2011 

‘‘(B) The term ‘security category’ includes discretionary 

appropriations associated with agency budgets for the Department of Defense, the Department of Homeland Security, the 

Department of Veterans Affairs, the National Nuclear Security 

Administration, the intelligence community management 

account (95–0401–0–1–054), and all budget accounts in budget 

function 150 (international affairs). 

‘‘(C) The term ‘discretionary category’ includes all discretionary appropriations.’’. 

(2) In paragraph (8)(C), strike ‘‘the food stamp program’’ 

and insert ‘‘the Supplemental Nutrition Assistance Program’’. 

(3) Strike paragraph (14) and insert the following new 

paragraph: 

‘‘(14) The term ‘outyear’ means a fiscal year one or more 

years after the budget year.’’. 

(4) At the end, add the following new paragraphs: 

‘‘(20) The term ‘emergency’ means a situation that— 

‘‘(A) requires new budget authority and outlays (or 

new budget authority and the outlays flowing therefrom) 

for the prevention or mitigation of, or response to, loss 

of life or property, or a threat to national security; and 

‘‘(B) is unanticipated. 

‘‘(21) The term ‘unanticipated’ means that the underlying 

situation is— 

‘‘(A) sudden, which means quickly coming into being 

or not building up over time; 

‘‘(B) urgent, which means a pressing and compelling 

need requiring immediate action; 

‘‘(C) unforeseen, which means not predicted or anticipated as an emerging need; and 

‘‘(D) temporary, which means not of a permanent duration.’’. 

SEC. 103. REPORTS AND ORDERS. 

Section 254 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended as follows: 

(1) In subsection (c)(2), strike ‘‘2002’’ and insert ‘‘2021’’. 

(2) At the end of subsection (e), insert ‘‘This report shall 

also contain a preview estimate of the adjustment for disaster 

funding for the upcoming fiscal year.’’. 

(3) In subsection (f)(2)(A), strike ‘‘2002’’ and insert ‘‘2021’’; 

before the concluding period insert ‘‘, including a final estimate 

of the adjustment for disaster funding’’. 

SEC. 104. EXPIRATION. 

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

(b) CONFORMING CHANGE.—Sections 252(d)(1), 254(c), 254(f)(3), 

and 254(i) of the Balanced Budget and Emergency Deficit Control 

Act of 1985 shall not apply to the Congressional Budget Office. 

SEC. 105. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND 

IMPOUNDMENT CONTROL ACT OF 1974. 

(a) ADJUSTMENTS.—Section 314 of the Congressional Budget 

Act of 1974 is amended as follows: 

(1) Strike subsection (a) and insert the following: 

‘‘(a) ADJUSTMENTS.—After the reporting of a bill or joint resolution or the offering of an amendment thereto or the submission 

2 USC 645. 

2 USC 902 note. 

2 USC 900 note. 

2 USC 904. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 247 

of a conference report thereon, the chairman of the Committee 

on the Budget of the House of Representatives or the Senate may 

make appropriate budgetary adjustments of new budget authority 

and the outlays flowing therefrom in the same amount as required 

by section 251(b) of the Balanced Budget and Emergency Deficit 

Control Act of 1985.’’. 

(2) Strike subsections (b) and (e) and redesignate subsections (c) and (d) as subsections (b) and (c), respectively. 

(3) At the end, add the following new subsections: 

‘‘(d) EMERGENCIES IN THE HOUSE OF REPRESENTATIVES.— (1) 

In the House of Representatives, if a reported bill or joint resolution, 

or amendment thereto or conference report thereon, contains a 

provision providing new budget authority and outlays or reducing 

revenue, and a designation of such provision as an emergency 

requirement pursuant to 251(b)(2)(A) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, the chair of the Committee 

on the Budget of the House of Representatives shall not count 

the budgetary effects of such provision for purposes of title III 

and title IV of the Congressional Budget Act of 1974 and the 

Rules of the House of Representatives. 

‘‘(2)(A) In the House of Representatives, if a reported bill or 

joint resolution, or amendment thereto or conference report thereon, 

contains a provision providing new budget authority and outlays 

or reducing revenue, and a designation of such provision as an 

emergency pursuant to paragraph (1), the chair of the Committee 

on the Budget shall not count the budgetary effects of such provision 

for purposes of this title and title IV and the Rules of the House 

of Representatives. 

‘‘(B) In the House of Representatives, a proposal to strike 

a designation under subparagraph (A) shall be excluded from an 

evaluation of budgetary effects for purposes of this title and title 

IV and the Rules of the House of Representatives. 

‘‘(C) An amendment offered under subparagraph (B) that also 

proposes to reduce each amount appropriated or otherwise made 

available by the pending measure that is not required to be appropriated or otherwise made available shall be in order at any point 

in the reading of the pending measure. 

‘‘(e) ENFORCEMENT OF DISCRETIONARY SPENDING CAPS.—It shall 

not be in order in the House of Representatives or the Senate 

to consider any bill, joint resolution, amendment, motion, or conference report that would cause the discretionary spending limits 

as set forth in section 251 of the Balanced Budget and Emergency 

Deficit Control Act to be exceeded.’’. 

(b) DEFINITIONS.—Section 3 of the Congressional Budget and 

Impoundment Control Act of 1974 is amended by adding at the 

end the following new paragraph: 

‘‘(11) The terms ‘emergency’ and ‘unanticipated’ have the 

meanings given to such terms in section 250(c) of the Balanced 

Budget and Emergency Deficit Control Act of 1985.’’. 

(c) APPEALS FOR DISCRETIONARY CAPS.—Section 904(c)(2) of 

the Congressional Budget Act of 1974 is amended by striking ‘‘and 

312(c)’’ and inserting ‘‘312(c), and 314(e)’’. 

SEC. 106. SENATE BUDGET ENFORCEMENT. 

(a) IN GENERAL.— (1) For the purpose of enforcing the Congressional Budget 

Act of 1974 through April 15, 2012, including section 300 of 

Applicability. 

2 USC 631 note. 

2 USC 621 note. 

2 USC 622. 


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125 STAT. 248 PUBLIC LAW 112–25—AUG. 2, 2011 

that Act, and enforcing budgetary points of order in prior 

concurrent resolutions on the budget, the allocations, aggregates, and levels set in subsection (b)(1) shall apply in the 

Senate in the same manner as for a concurrent resolution 

on the budget for fiscal year 2012 with appropriate budgetary 

levels for fiscal years 2011 and 2013 through 2021. 

(2) For the purpose of enforcing the Congressional Budget 

Act of 1974 after April 15, 2012, including section 300 of that 

Act, and enforcing budgetary points of order in prior concurrent 

resolutions on the budget, the allocations, aggregates, and levels 

set in subsection (b)(2) shall apply in the Senate in the same 

manner as for a concurrent resolution on the budget for fiscal 

year 2013 with appropriate budgetary levels for fiscal years 

2012 and 2014 through 2022. 

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.— 

(1) As soon as practicable after the date of enactment 

of this section, the Chairman of the Committee on the Budget 

shall file— 

(A) for the Committee on Appropriations, committee 

allocations for fiscal years 2011 and 2012 consistent with 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 2011, 

2012, 2012 through 2016, and 2012 through 2021 consistent 

with the Congressional Budget Office’s March 2011 baseline 

adjusted to account for the budgetary effects of this Act 

and legislation enacted prior to this Act but not included 

in the Congressional Budget Office’s March 2011 baseline, 

for the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(C) aggregate spending levels for fiscal years 2011 

and 2012 and aggregate revenue levels for fiscal years 

2011, 2012, 2012 through 2016, 2012 through 2021 consistent with the Congressional Budget Office’s March 2011 

baseline adjusted to account for the budgetary effects of 

this Act and legislation enacted prior to this Act but not 

included in the Congressional Budget Office’s March 2011 

baseline, and the discretionary spending limits set forth 

in this Act for the purpose of enforcing section 311 of 

the Congressional Budget Act of 1974; and 

(D) levels of Social Security revenues and outlays for 

fiscal years 2011, 2012, 2012 through 2016, and 2012 

through 2021 consistent with the Congressional Budget 

Office’s March 2011 baseline adjusted to account for the 

budgetary effects of this Act and legislation enacted prior 

to this Act but not included in the Congressional Budget 

Office’s March 2011 baseline, for the purpose of enforcing 

sections 302 and 311 of the Congressional Budget Act of 

1974. 

(2) Not later than April 15, 2012, the Chairman of the 

Committee on the Budget shall file— 

(A) for the Committee on Appropriations, committee 

allocations for fiscal years 2012 and 2013 consistent with 

the discretionary spending limits set forth in this Act for 

Deadline. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 249 

the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 2012, 

2013, 2013 through 2017, and 2013 through 2022 consistent 

with the Congressional Budget Office’s March 2012 baseline 

for the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(C) aggregate spending levels for fiscal years 2012 

and 2013 and aggregate revenue levels for fiscal years 

2012, 2013, 2013–2017, and 2013–2022 consistent with the 

Congressional Budget Office’s March 2012 baseline and 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 311 of the Congressional 

Budget Act of 1974; and 

(D) levels of Social Security revenues and outlays for 

fiscal years 2012 and 2013, 2013–2017, and 2013–2022 

consistent with the Congressional Budget Office’s March 

2012 baseline budget for the purpose of enforcing sections 

302 and 311 of the Congressional Budget Act of 1974. 

(c) SENATE PAY-AS-YOU-GO SCORECARD.— 

(1) Effective on the date of enactment of this section, for 

the purpose of enforcing section 201 of S. Con. Res. 21 (110th 

Congress), the Chairman of the Senate Committee on the 

Budget shall reduce any balances of direct spending and revenues for any fiscal year to 0 (zero). 

(2) Not later than April 15, 2012, for the purpose of 

enforcing section 201 of S. Con. Res. 21 (110th Congress), 

the Chairman of the Senate Committee on the Budget shall 

reduce any balances of direct spending and revenues for any 

fiscal year to 0 (zero). 

(3) Upon resetting the Senate paygo scorecard pursuant 

to paragraph (2), the Chairman shall publish a notification 

of such action in the Congressional Record. 

(d) FURTHER ADJUSTMENTS.— 

(1) The Chairman of the Committee on the Budget of 

the Senate may revise any allocations, aggregates, or levels 

set pursuant to this section to account for any subsequent 

adjustments to discretionary spending limits made pursuant 

to this Act. 

(2) With respect to any allocations, aggregates, or levels 

set or adjustments made pursuant to this section, sections 

412 through 414 of S. Con. Res. 13 (111th Congress) shall 

remain in effect. 

(e) EXPIRATION.— 

(1) Subsections (a)(1), (b)(1), and (c)(1) shall expire if a 

concurrent resolution on the budget for fiscal year 2012 is 

agreed to by the Senate and House of Representatives pursuant 

to section 301 of the Congressional Budget Act of 1974. 

(2) Subsections (a)(2), (b)(2), and (c)(2) shall expire if a 

concurrent resolution on the budget for fiscal year 2013 is 

agreed to by the Senate and House of Representatives pursuant 

to section 301 of the Congressional Budget Act of 1974. 

Notification. 

Congressional 

Record. 

Deadline. 

Effective date. 


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125 STAT. 250 PUBLIC LAW 112–25—AUG. 2, 2011 

TITLE II—VOTE ON THE BALANCED 

BUDGET AMENDMENT 

SEC. 201. VOTE ON THE BALANCED BUDGET AMENDMENT. 

After September 30, 2011, and not later than December 31, 

2011, the House of Representatives and Senate, respectively, shall 

vote on passage of a joint resolution, the title of which is as 

follows: ‘‘Joint resolution proposing a balanced budget amendment 

to the Constitution of the United States.’’. 

SEC. 202. CONSIDERATION BY THE OTHER HOUSE. 

(a) HOUSE CONSIDERATION.— (1) REFERRAL.—If the House receives a joint resolution 

described in section 201 from the Senate, such joint resolution 

shall be referred to the Committee on the Judiciary. If the 

committee fails to report the joint resolution within five legislative days, it shall be in order to move that the House discharge 

the committee from further consideration of the joint resolution. 

Such a motion shall not be in order after the House has disposed 

of a motion to discharge the joint resolution. The previous 

question shall be considered as ordered on the motion to its 

adoption without intervening motion except twenty minutes 

of debate equally divided and controlled by the proponent and 

an opponent. If such a motion is adopted, the House shall 

proceed immediately to consider the joint resolution in accordance with paragraph (3). A motion to reconsider the vote by 

which the motion is disposed of shall not be in order. 

(2) PROCEEDING TO CONSIDERATION.—After the joint resolution has been referred to the appropriate calendar or the committee has been discharged (other than by motion) from its 

consideration, it shall be in order to move to proceed to consider 

the joint resolution in the House. Such a motion shall not 

be in order after the House has disposed of a motion to proceed 

with respect to the joint resolution. The previous question shall 

be considered as ordered on the motion to its adoption without 

intervening motion. A motion to reconsider the vote by which 

the motion is disposed of shall not be in order. 

(3) CONSIDERATION.—The joint resolution shall be considered as read. All points of order against the joint resolution 

and against its consideration are waived. The previous question 

shall be considered as ordered on the joint resolution to its 

passage without intervening motion except two hours of debate 

equally divided and controlled by the proponent and an opponent and one motion to limit debate on the joint resolution. 

A motion to reconsider the vote on passage of the joint resolution shall not be in order. 

(b) SENATE CONSIDERATION.—(1) If the Senate receives a joint 

resolution described in section 201 from the House of Representatives, such joint resolution shall be referred to the appropriate 

committee of the Senate. If such committee has not reported the 

joint resolution at the close of the fifth session day after its receipt 

by the Senate, such committee shall be automatically discharged 

from further consideration of the joint resolution and it shall be 

placed on the appropriate calendar. 

(2) Consideration of the joint resolution and on all debatable 

motions and appeals in connection therewith, shall be limited to 

Deadline. 

Deadline. 

Time period. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 251 

not more than 20 hours, which shall be divided equally between 

the majority and minority leaders or their designees. A motion 

further to limit debate is in order and not debatable. An amendment 

to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution 

is not in order. Any debatable motion or appeal is debatable for 

not to exceed 1 hour, to be divided equally between those favoring 

and those opposing the motion or appeal. All time used for consideration of the joint resolution, including time used for quorum calls 

and voting, shall be counted against the total 20 hours of consideration. 

(3) If the Senate has voted to proceed to a joint resolution, 

the vote on passage of the joint resolution shall be taken on or 

before the close of the seventh session day after such joint resolution 

has been reported or discharged or immediately following the 

conclusion of consideration of the joint resolution, and a single 

quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate. 

TITLE III—DEBT CEILING DISAPPROVAL 

PROCESS 

SEC. 301. DEBT CEILING DISAPPROVAL PROCESS. 

(a) IN GENERAL.—Subchapter I of chapter 31 of subtitle III 

of title 31, United States Code, is amended— 

(1) in section 3101(b), by striking ‘‘or otherwise’’ and 

inserting ‘‘or as provided by section 3101A or otherwise’’; and 

(2) by inserting after section 3101 the following: 

‘‘§ 3101A. Presidential modification of the debt ceiling 

‘‘(a) IN GENERAL.— ‘‘(1) $900 BILLION.— ‘‘(A) CERTIFICATION.—If, not later than December 31, 

2011, the President submits a written certification to Congress that the President has determined that the debt 

subject to limit is within $100,000,000,000 of the limit 

in section 3101(b) and that further borrowing is required 

to meet existing commitments, the Secretary of the 

Treasury may exercise authority to borrow an additional 

$900,000,000,000, subject to the enactment of a joint resolution of disapproval enacted pursuant to this section. Upon 

submission of such certification, the limit on debt provided 

in section 3101(b) (referred to in this section as the ‘debt 

limit’) is increased by $400,000,000,000. 

‘‘(B) RESOLUTION OF DISAPPROVAL.—Congress may consider a joint resolution of disapproval of the authority 

under subparagraph (A) as provided in subsections (b) 

through (f). The joint resolution of disapproval considered 

under this section shall contain only the language provided 

in subsection (b)(2). If the time for disapproval has lapsed 

without enactment of a joint resolution of disapproval under 

this section, the debt limit is increased by an additional 

$500,000,000,000. 

‘‘(2) ADDITIONAL AMOUNT.— ‘‘(A) CERTIFICATION.—If, after the debt limit is 

increased by $900,000,000,000 under paragraph (1), the 

Deadline. 

Deadline. 


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125 STAT. 252 PUBLIC LAW 112–25—AUG. 2, 2011 

President submits a written certification to Congress that 

the President has determined that the debt subject to limit 

is within $100,000,000,000 of the limit in section 3101(b) 

and that further borrowing is required to meet existing 

commitments, the Secretary of the Treasury may, subject 

to the enactment of a joint resolution of disapproval enacted 

pursuant to this section, exercise authority to borrow an 

additional amount equal to— 

‘‘(i) $1,200,000,000,000, unless clause (ii) or (iii) 

applies; 

‘‘(ii) $1,500,000,000,000 if the Archivist of the 

United States has submitted to the States for their 

ratification a proposed amendment to the Constitution 

of the United States pursuant to a joint resolution 

entitled ‘Joint resolution proposing a balanced budget 

amendment to the Constitution of the United States’; 

or 

‘‘(iii) if a joint committee bill to achieve an amount 

greater than $1,200,000,000,000 in deficit reduction 

as provided in section 401(b)(3)(B)(i)(II) of the Budget 

Control Act of 2011 is enacted, an amount equal to 

the amount of that deficit reduction, but not greater 

than $1,500,000,000,000, unless clause (ii) applies. 

‘‘(B) RESOLUTION OF DISAPPROVAL.—Congress may consider a joint resolution of disapproval of the authority 

under subparagraph (A) as provided in subsections (b) 

through (f). The joint resolution of disapproval considered 

under this section shall contain only the language provided 

in subsection (b)(2). If the time for disapproval has lapsed 

without enactment of a joint resolution of disapproval under 

this section, the debt limit is increased by the amount 

authorized under subparagraph (A). 

‘‘(b) JOINT RESOLUTION OF DISAPPROVAL.— 

‘‘(1) IN GENERAL.—Except for the $400,000,000,000 increase 

in the debt limit provided by subsection (a)(1)(A), the debt 

limit may not be raised under this section if, within 50 calendar 

days after the date on which Congress receives a certification 

described in subsection (a)(1) or within 15 calendar days after 

Congress receives the certification described in subsection (a)(2) 

(regardless of whether Congress is in session), there is enacted 

into law a joint resolution disapproving the President’s exercise 

of authority with respect to such additional amount. 

‘‘(2) CONTENTS OF JOINT RESOLUTION.—For the purpose of 

this section, the term ‘joint resolution’ means only a joint resolution— 

‘‘(A)(i) for the certification described in subsection 

(a)(1), that is introduced on September 6, 7, 8, or 9, 2011 

(or, if the Senate was not in session, the next calendar 

day on which the Senate is in session); and 

‘‘(ii) for the certification described in subsection (a)(2), 

that is introduced between the date the certification is 

received and 3 calendar days after that date; 

‘‘(B) which does not have a preamble; 

‘‘(C) the title of which is only as follows: ‘Joint resolution relating to the disapproval of the President’s exercise 

of authority to increase the debt limit, as submitted under 

section 3101A of title 31, United States Code, on 

Definition. 

Deadlines. 


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llllll’ (with the blank containing the date of such 

submission); and 

‘‘(D) the matter after the resolving clause of which 

is only as follows: ‘That Congress disapproves of the President’s exercise of authority to increase the debt limit, as 

exercised pursuant to the certification under section 

3101A(a) of title 31, United States Code.’. 

‘‘(c) EXPEDITED CONSIDERATION IN HOUSE OF REPRESENTA- TIVES.— ‘‘(1) RECONVENING.—Upon receipt of a certification 

described in subsection (a)(2), the Speaker, if the House would 

otherwise be adjourned, shall notify the Members of the House 

that, pursuant to this section, the House shall convene not 

later than the second calendar day after receipt of such certification. 

‘‘(2) REPORTING AND DISCHARGE.—Any committee of the 

House of Representatives to which a joint resolution is referred 

shall report it to the House without amendment not later 

than 5 calendar days after the date of introduction of a joint 

resolution described in subsection (a). If a committee fails to 

report the joint resolution within that period, the committee 

shall be discharged from further consideration of the joint resolution and the joint resolution shall be referred to the appropriate calendar. 

‘‘(3) PROCEEDING TO CONSIDERATION.—After each committee 

authorized to consider a joint resolution reports it to the House 

or has been discharged from its consideration, it shall be in 

order, not later than the sixth day after introduction of a 

joint resolution under subsection (a), to move to proceed to 

consider the joint resolution in the House. All points of order 

against the motion are waived. Such a motion shall not be 

in order after the House has disposed of a motion to proceed 

on a joint resolution addressing a particular submission. The 

previous question shall be considered as ordered on the motion 

to its adoption without intervening motion. The motion shall 

not be debatable. A motion to reconsider the vote by which 

the motion is disposed of shall not be in order. 

‘‘(4) CONSIDERATION.—The joint resolution shall be considered as read. All points of order against the joint resolution 

and against its consideration are waived. The previous question 

shall be considered as ordered on the joint resolution to its 

passage without intervening motion except two hours of debate 

equally divided and controlled by the proponent and an opponent. A motion to reconsider the vote on passage of the joint 

resolution shall not be in order. 

‘‘(d) EXPEDITED PROCEDURE IN SENATE.— 

‘‘(1) RECONVENING.—Upon receipt of a certification under 

subsection (a)(2), if the Senate has adjourned or recessed for 

more than 2 days, the majority leader of the Senate, after 

consultation with the minority leader of the Senate, shall notify 

the Members of the Senate that, pursuant to this section, 

the Senate shall convene not later than the second calendar 

day after receipt of such message. 

‘‘(2) PLACEMENT ON CALENDAR.—Upon introduction in the 

Senate, the joint resolution shall be immediately placed on 

the calendar. 

‘‘(3) FLOOR CONSIDERATION.— 

Notification. 

Deadline. 

Deadline. 

Notification. 

Deadline. 


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125 STAT. 254 PUBLIC LAW 112–25—AUG. 2, 2011 

‘‘(A) IN GENERAL.—Notwithstanding Rule XXII of the 

Standing Rules of the Senate, it is in order at any time 

during the period beginning on the day after the date 

on which Congress receives a certification under subsection 

(a) and, for the certification described in subsection (a)(1), 

ending on September 14, 2011, and for the certification 

described in subsection (a)(2), on the 6th day after the 

date on which Congress receives a certification under subsection (a) (even though a previous motion to the same 

effect has been disagreed to) to move to proceed to the 

consideration of the joint resolution, and all points of order 

against the joint resolution (and against consideration of 

the joint resolution) are waived. The motion to proceed 

is not debatable. The motion is not subject to a motion 

to postpone. A motion to reconsider the vote by which 

the motion is agreed to or disagreed to shall not be in 

order. If a motion to proceed to the consideration of the 

resolution is agreed to, the joint resolution shall remain 

the unfinished business until disposed of. 

‘‘(B) CONSIDERATION.—Consideration of the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, 

which shall be divided equally between the majority and 

minority leaders or their designees. A motion further to 

limit debate is in order and not debatable. An amendment 

to, or a motion to postpone, or a motion to proceed to 

the consideration of other business, or a motion to recommit 

the joint resolution is not in order. 

‘‘(C) VOTE ON PASSAGE.—If the Senate has voted to 

proceed to a joint resolution, the vote on passage of the 

joint resolution shall occur immediately following the 

conclusion of consideration of the joint resolution, and a 

single quorum call at the conclusion of the debate if 

requested in accordance with the rules of the Senate. 

‘‘(D) RULINGS OF THE CHAIR ON PROCEDURE.—Appeals 

from the decisions of the Chair relating to the application 

of the rules of the Senate, as the case may be, to the 

procedure relating to a joint resolution shall be decided 

without debate. 

‘‘(e) AMENDMENT NOT IN ORDER.—A joint resolution of disapproval considered pursuant to this section shall not be subject 

to amendment in either the House of Representatives or the Senate. 

‘‘(f) COORDINATION WITH ACTION BY OTHER HOUSE.— 

‘‘(1) IN GENERAL.—If, before passing the joint resolution, 

one House receives from the other a joint resolution— 

‘‘(A) the joint resolution of the other House shall not 

be referred to a committee; and 

‘‘(B) the procedure in the receiving House shall be 

the same as if no joint resolution had been received from 

the other House until the vote on passage, when the joint 

resolution received from the other House shall supplant 

the joint resolution of the receiving House. 

‘‘(2) TREATMENT OF JOINT RESOLUTION OF OTHER HOUSE.— 

If the Senate fails to introduce or consider a joint resolution 

under this section, the joint resolution of the House shall be 

entitled to expedited floor procedures under this section. 

Time period. 

Waiver. 


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‘‘(3) TREATMENT OF COMPANION MEASURES.—If, following 

passage of the joint resolution in the Senate, the Senate then 

receives the companion measure from the House of Representatives, the companion measure shall not be debatable. 

‘‘(4) CONSIDERATION AFTER PASSAGE.—(A) If Congress 

passes a joint resolution, the period beginning on the date 

the President is presented with the joint resolution and ending 

on the date the President signs, allows to become law without 

his signature, or vetoes and returns the joint resolution (but 

excluding days when either House is not in session) shall be 

disregarded in computing the appropriate calendar day period 

described in subsection (b)(1). 

‘‘(B) Debate on a veto message in the Senate under this 

section shall be 1 hour equally divided between the majority 

and minority leaders or their designees. 

‘‘(5) VETO OVERRIDE.—If within the appropriate calendar 

day period described in subsection (b)(1), Congress overrides 

a veto of the joint resolution with respect to authority exercised 

pursuant to paragraph (1) or (2) of subsection (a), the limit 

on debt provided in section 3101(b) shall not be raised, except 

for the $400,000,000,000 increase in the limit provided by subsection (a)(1)(A). 

‘‘(6) SEQUESTRATION.—(A) If within the 50-calendar day 

period described in subsection (b)(1), the President signs the 

joint resolution, the President allows the joint resolution to 

become law without his signature, or Congress overrides a 

veto of the joint resolution with respect to authority exercised 

pursuant to paragraph (1) of subsection (a), there shall be 

a sequestration to reduce spending by $400,000,000,000. OMB 

shall implement the sequestration forthwith. 

‘‘(B) OMB shall implement each half of such sequestration 

in accordance with section 255, section 256, and subsections 

(c), (d), (e), and (f) of section 253 of the Balanced Budget 

and Emergency Deficit Control Act of 1985, and for the purpose 

of such implementation the term ‘excess deficit’ means the 

amount specified in subparagraph (A). 

‘‘(g) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.—This 

subsection and subsections (b), (c), (d), (e), and (f) (other than 

paragraph (6)) are enacted by Congress— 

‘‘(1) as an exercise of the rulemaking power of the Senate 

and House of Representatives, respectively, and as such it 

is deemed a part of the rules of each House, respectively, 

but applicable only with respect to the procedure to be followed 

in that House in the case of a joint resolution, and it supersedes 

other rules only to the extent that it is inconsistent with such 

rules; and 

‘‘(2) with full recognition of the constitutional right of either 

House to change the rules (so far as relating to the procedure 

of that House) at any time, in the same manner, and to the 

same extent as in the case of any other rule of that House.’’. 

(b) CONFORMING AMENDMENT.—The table of sections for chapter 

31 of title 31, United States Code, is amended by inserting after 

the item relating to section 3101 the following new item: 

‘‘3101A. Presidential modification of the debt ceiling.’’. 

Definition. 

Time period. 

President. 


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125 STAT. 256 PUBLIC LAW 112–25—AUG. 2, 2011 

SEC. 302. ENFORCEMENT OF BUDGET GOAL. 

(a) IN GENERAL.—The Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended by inserting after section 251 

the following new section: 

‘‘SEC. 251A. ENFORCEMENT OF BUDGET GOAL. 

‘‘Unless a joint committee bill achieving an amount greater 

than $1,200,000,000,000 in deficit reduction as provided in section 

401(b)(3)(B)(i)(II) of the Budget Control Act of 2011 is enacted 

by January 15, 2012, the discretionary spending limits listed in 

section 251(c) shall be revised, and discretionary appropriations 

and direct spending shall be reduced, as follows: 

‘‘(1) REVISED SECURITY CATEGORY; REVISED NONSECURITY

CATEGORY.—(A) The term ‘revised security category’ means 

discretionary appropriations in budget function 050. 

‘‘(B) The term ‘revised nonsecurity category’ means discretionary appropriations other than in budget function 050. 

‘‘(2) REVISED DISCRETIONARY SPENDING LIMITS.—The discretionary spending limits for fiscal years 2013 through 2021 

under section 251(c) shall be replaced with the following: 

‘‘(A) For fiscal year 2013— 

‘‘(i) for the security category, $546,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $501,000,000,000 

in budget authority. 

‘‘(B) For fiscal year 2014— 

‘‘(i) for the security category, $556,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $510,000,000,000 

in budget authority. 

‘‘(C) For fiscal year 2015— 

‘‘(i) for the security category, $566,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $520,000,000,000 

in budget authority. 

‘‘(D) For fiscal year 2016— 

‘‘(i) for the security category, $577,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $530,000,000,000 

in budget authority. 

‘‘(E) For fiscal year 2017— 

‘‘(i) for the security category, $590,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $541,000,000,000 

in budget authority. 

‘‘(F) For fiscal year 2018— 

‘‘(i) for the security category, $603,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $553,000,000,000 

in budget authority. 

‘‘(G) For fiscal year 2019— 

‘‘(i) for the security category, $616,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $566,000,000,000 

in budget authority. 

‘‘(H) For fiscal year 2020— 

Definitions. 

Deadline. 

2 USC 901a. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 257 

‘‘(i) for the security category, $630,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $578,000,000,000 

in budget authority. 

‘‘(I) For fiscal year 2021— 

‘‘(i) for the security category, $644,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $590,000,000,000 

in budget authority. 

‘‘(3) CALCULATION OF TOTAL DEFICIT REDUCTION.—OMB 

shall calculate the amount of the deficit reduction required 

by this section for each of fiscal years 2013 through 2021 

by— 

‘‘(A) starting with $1,200,000,000,000; 

‘‘(B) subtracting the amount of deficit reduction 

achieved by the enactment of a joint committee bill, as 

provided in section 401(b)(3)(B)(i)(II) of the Budget Control 

Act of 2011; 

‘‘(C) reducing the difference by 18 percent to account 

for debt service; and 

‘‘(D) dividing the result by 9. 

‘‘(4) ALLOCATION TO FUNCTIONS.—On January 2, 2013, for 

fiscal year 2013, and in its sequestration preview report for 

fiscal years 2014 through 2021 pursuant to section 254(c), OMB 

shall allocate half of the total reduction calculated pursuant 

to paragraph (3) for that year to discretionary appropriations 

and direct spending accounts within function 050 (defense function) and half to accounts in all other functions (nondefense 

functions). 

‘‘(5) DEFENSE FUNCTION REDUCTION.—OMB shall calculate 

the reductions to discretionary appropriations and direct 

spending for each of fiscal years 2013 through 2021 for defense 

function spending as follows: 

‘‘(A) DISCRETIONARY.—OMB shall calculate the reduction to discretionary appropriations by— 

‘‘(i) taking the total reduction for the defense function allocated for that year under paragraph (4); 

‘‘(ii) multiplying by the discretionary spending 

limit for the revised security category for that year; 

and 

‘‘(iii) dividing by the sum of the discretionary 

spending limit for the security category and OMB’s 

baseline estimate of nonexempt outlays for direct 

spending programs within the defense function for that 

year. 

‘‘(B) DIRECT SPENDING.—OMB shall calculate the 

reduction to direct spending by taking the total reduction 

for the defense function required for that year under paragraph (4) and subtracting the discretionary reduction calculated pursuant to subparagraph (A). 

‘‘(6) NONDEFENSE FUNCTION REDUCTION.—OMB shall calculate the reduction to discretionary appropriations and to 

direct spending for each of fiscal years 2013 through 2021 

for programs in nondefense functions as follows: 

‘‘(A) DISCRETIONARY.—OMB shall calculate the reduction to discretionary appropriations by— 

Effective date. 


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125 STAT. 258 PUBLIC LAW 112–25—AUG. 2, 2011 

‘‘(i) taking the total reduction for nondefense functions allocated for that year under paragraph (4); 

‘‘(ii) multiplying by the discretionary spending 

limit for the revised nonsecurity category for that year; 

and 

‘‘(iii) dividing by the sum of the discretionary 

spending limit for the revised nonsecurity category 

and OMB’s baseline estimate of nonexempt outlays 

for direct spending programs in nondefense functions 

for that year. 

‘‘(B) DIRECT SPENDING.—OMB shall calculate the 

reduction to direct spending programs by taking the total 

reduction for nondefense functions required for that year 

under paragraph (4) and subtracting the discretionary 

reduction calculated pursuant to subparagraph (A). 

‘‘(7) IMPLEMENTING DISCRETIONARY REDUCTIONS.— ‘‘(A) FISCAL YEAR 2013.—On January 2, 2013, for fiscal 

year 2013, OMB shall calculate and the President shall 

order a sequestration, effective upon issuance and under 

the procedures set forth in section 253(f), to reduce each 

account within the security category or nonsecurity category by a dollar amount calculated by multiplying the 

baseline level of budgetary resources in that account at 

that time by a uniform percentage necessary to achieve— 

‘‘(i) for the revised security category, an amount 

equal to the defense function discretionary reduction 

calculated pursuant to paragraph (5); and 

‘‘(ii) for the revised nonsecurity category, an 

amount equal to the nondefense function discretionary 

reduction calculated pursuant to paragraph (6). 

‘‘(B) FISCAL YEARS 2014–2021.—On the date of the 

submission of its sequestration preview report for fiscal 

years 2014 through 2021 pursuant to section 254(c) for 

each of fiscal years 2014 through 2021, OMB shall reduce 

the discretionary spending limit— 

‘‘(i) for the revised security category by the amount 

of the defense function discretionary reduction calculated pursuant to paragraph (5); and 

‘‘(ii) for the revised nonsecurity category by the 

amount of the nondefense function discretionary reduction calculated pursuant to paragraph (6). 

‘‘(8) IMPLEMENTING DIRECT SPENDING REDUCTIONS.—On the 

date specified in paragraph (4) during each applicable year, 

OMB shall prepare and the President shall order a sequestration, effective upon issuance, of nonexempt direct spending 

to achieve the direct spending reduction calculated pursuant 

to paragraphs (5) and (6). When implementing the sequestration 

of direct spending pursuant to this paragraph, OMB shall follow 

the procedures specified in section 6 of the Statutory PayAs-You-Go Act of 2010, the exemptions specified in section 

255, and the special rules specified in section 256, except that 

the percentage reduction for the Medicare programs specified 

in section 256(d) shall not be more than 2 percent for a fiscal 

year. 

‘‘(9) ADJUSTMENT FOR MEDICARE.—If the percentage reduction for the Medicare programs would exceed 2 percent for 

a fiscal year in the absence of paragraph (8), OMB shall 

President. 

Sequestration 

order. 

Effective date. 

President. 

Sequestration 

order. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 259 

increase the reduction for all other discretionary appropriations 

and direct spending under paragraph (6) by a uniform percentage to a level sufficient to achieve the reduction required by 

paragraph (6) in the non-defense function. 

‘‘(10) IMPLEMENTATION OF REDUCTIONS.—Any reductions 

imposed under this section shall be implemented in accordance 

with section 256(k). 

‘‘(11) REPORT.—On the dates specified in paragraph (4), 

OMB shall submit a report to Congress containing information 

about the calculations required under this section, the adjusted 

discretionary spending limits, a listing of the reductions 

required for each nonexempt direct spending account, and any 

other data and explanations that enhance public understanding 

of this title and actions taken under it.’’. 

(b) CONFORMING AMENDMENT.—The table of contents set forth 

in section 250(a) of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended by inserting after the item relating 

to section 251 the following: 

‘‘Sec. 251A. Enforcement of budget goal.’’. 

TITLE IV—JOINT SELECT COMMITTEE 

ON DEFICIT REDUCTION 

SEC. 401. ESTABLISHMENT OF JOINT SELECT COMMITTEE. 

(a) DEFINITIONS.—In this title: 

(1) JOINT COMMITTEE.—The term ‘‘joint committee’’ means 

the Joint Select Committee on Deficit Reduction established 

under subsection (b)(1). 

(2) JOINT COMMITTEE BILL.—The term ‘‘joint committee bill’’ 

means a bill consisting of the proposed legislative language 

of the joint committee recommended under subsection (b)(3)(B) 

and introduced under section 402(a). 

(b) ESTABLISHMENT OF JOINT SELECT COMMITTEE.— (1) ESTABLISHMENT.—There is established a joint select 

committee of Congress to be known as the ‘‘Joint Select Committee on Deficit Reduction’’. 

(2) GOAL.—The goal of the joint committee shall be to 

reduce the deficit by at least $1,500,000,000,000 over the period 

of fiscal years 2012 to 2021. 

(3) DUTIES.— 

(A) IN GENERAL.— 

(i) IMPROVING THE SHORT-TERM AND LONG-TERM

FISCAL IMBALANCE.—The joint committee shall provide 

recommendations and legislative language that will 

significantly improve the short-term and long-term 

fiscal imbalance of the Federal Government. 

(ii) RECOMMENDATIONS OF COMMITTEES.—Not later 

than October 14, 2011, each committee of the House 

of Representatives and the Senate may transmit to 

the joint committee its recommendations for changes 

in law to reduce the deficit consistent with the goal 

described in paragraph (2) for the joint committee’s 

consideration. 

(B) REPORT, RECOMMENDATIONS, AND LEGISLATIVE LAN- GUAGE.— 

Deadline. 

Recommendations. 

2 USC 900 note. 


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125 STAT. 260 PUBLIC LAW 112–25—AUG. 2, 2011 

(i) IN GENERAL.—Not later than November 23, 

2011, the joint committee shall vote on— 

(I) a report that contains a detailed statement 

of the findings, conclusions, and recommendations 

of the joint committee and the estimate of the 

Congressional Budget Office required by paragraph (5)(D)(ii); and 

(II) proposed legislative language to carry out 

such recommendations as described in subclause 

(I), which shall include a statement of the deficit 

reduction achieved by the legislation over the 

period of fiscal years 2012 to 2021. 

Any change to the Rules of the House of Representatives or the Standing Rules of the Senate included 

in the report or legislative language shall be considered 

to be merely advisory. 

(ii) APPROVAL OF REPORT AND LEGISLATIVE LANGUAGE.—The report of the joint committee and the 

proposed legislative language described in clause (i) 

shall require the approval of a majority of the members 

of the joint committee. 

(iii) ADDITIONAL VIEWS.—A member of the joint 

committee who gives notice of an intention to file 

supplemental, minority, or additional views at the time 

of final joint committee vote on the approval of the 

report and legislative language under clause (ii) shall 

be entitled to 3 calendar days in which to file such 

views in writing with the staff director of the joint 

committee. Such views shall then be included in the 

joint committee report and printed in the same volume, 

or part thereof, and their inclusion shall be noted 

on the cover of the report. In the absence of timely 

notice, the joint committee report may be printed and 

transmitted immediately without such views. 

(iv) TRANSMISSION OF REPORT AND LEGISLATIVE

LANGUAGE.—If the report and legislative language are 

approved by the joint committee pursuant to clause 

(ii), then not later than December 2, 2011, the joint 

committee shall submit the joint committee report and 

legislative language described in clause (i) to the President, the Vice President, the Speaker of the House 

of Representatives, and the majority and minority 

Leaders of each House of Congress. 

(v) REPORT AND LEGISLATIVE LANGUAGE TO BE

MADE PUBLIC.—Upon the approval or disapproval of 

the joint committee report and legislative language 

pursuant to clause (ii), the joint committee shall 

promptly make the full report and legislative language, 

and a record of the vote, available to the public. 

(4) MEMBERSHIP.— 

(A) IN GENERAL.—The joint committee shall be composed of 12 members appointed pursuant to subparagraph 

(B). 

(B) APPOINTMENT.—Members of the joint committee 

shall be appointed as follows: 

(i) The majority leader of the Senate shall appoint 

three members from among Members of the Senate. 

Time period. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 261 

(ii) The minority leader of the Senate shall appoint 

three members from among Members of the Senate. 

(iii) The Speaker of the House of Representatives 

shall appoint three members from among Members 

of the House of Representatives. 

(iv) The minority leader of the House of Representatives shall appoint three members from among Members of the House of Representatives. 

(C) CO-CHAIRS.— (i) IN GENERAL.—There shall be two Co-Chairs of 

the joint committee. The majority leader of the Senate 

shall appoint one Co-Chair from among the members 

of the joint committee. The Speaker of the House of 

Representatives shall appoint the second Co-Chair 

from among the members of the joint committee. The 

Co-Chairs shall be appointed not later than 14 calendar 

days after the date of enactment of this Act. 

(ii) STAFF DIRECTOR.—The Co-Chairs, acting 

jointly, shall hire the staff director of the joint committee. 

(D) DATE.—Members of the joint committee shall be 

appointed not later than 14 calendar days after the date 

of enactment of this Act. 

(E) PERIOD OF APPOINTMENT.—Members shall be 

appointed for the life of the joint committee. Any vacancy 

in the joint committee shall not affect its powers, but 

shall be filled not later than 14 calendar days after the 

date on which the vacancy occurs, in the same manner 

as the original designation was made. If a member of 

the joint committee ceases to be a Member of the House 

of Representatives or the Senate, as the case may be, 

the member is no longer a member of the joint committee 

and a vacancy shall exist. 

(5) ADMINISTRATION.— 

(A) IN GENERAL.—To enable the joint committee to 

exercise its powers, functions, and duties, there are authorized to be disbursed by the Senate the actual and necessary 

expenses of the joint committee approved by the co-chairs, 

subject to the rules and regulations of the Senate. 

(B) EXPENSES.—In carrying out its functions, the joint 

committee is authorized to incur expenses in the same 

manner and under the same conditions as the Joint Economic Committee is authorized by section 11 of Public 

Law 79–304 (15 U.S.C. 1024 (d)). 

(C) QUORUM.—Seven members of the joint committee 

shall constitute a quorum for purposes of voting, meeting, 

and holding hearings. 

(D) VOTING.— 

(i) PROXY VOTING.—No proxy voting shall be 

allowed on behalf of the members of the joint committee. 

(ii) CONGRESSIONAL BUDGET OFFICE ESTIMATES.— 

The Congressional Budget Office shall provide estimates of the legislation (as described in paragraph 

(3)(B)) in accordance with sections 308(a) and 201(f) 

of the Congressional Budget Act of 1974 (2 U.S.C. 

639(a) and 601(f))(including estimates of the effect of 

Deadline. 

Appointments. 

Deadline. 

Deadline. 

Appointments. 


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125 STAT. 262 PUBLIC LAW 112–25—AUG. 2, 2011 

interest payment on the debt). In addition, the 

Congressional Budget Office shall provide information 

on the budgetary effect of the legislation beyond the 

year 2021. The joint committee may not vote on any 

version of the report, recommendations, or legislative 

language unless such estimates are available for 

consideration by all members of the joint committee 

at least 48 hours prior to the vote as certified by 

the Co-Chairs. 

(E) MEETINGS.— (i) INITIAL MEETING.—Not later than 45 calendar 

days after the date of enactment of this Act, the joint 

committee shall hold its first meeting. 

(ii) AGENDA.—The Co-Chairs of the joint committee 

shall provide an agenda to the joint committee members not less than 48 hours in advance of any meeting. 

(F) HEARINGS.— 

(i) IN GENERAL.—The joint committee may, for the 

purpose of carrying out this section, hold such hearings, 

sit and act at such times and places, require attendance 

of witnesses and production of books, papers, and documents, take such testimony, receive such evidence, and 

administer such oaths as the joint committee considers 

advisable. 

(ii) HEARING PROCEDURES AND RESPONSIBILITIES OF

CO-CHAIRS.— 

(I) ANNOUNCEMENT.—The Co-Chairs of the 

joint committee shall make a public announcement 

of the date, place, time, and subject matter of 

any hearing to be conducted, not less than 7 days 

in advance of such hearing, unless the Co-Chairs 

determine that there is good cause to begin such 

hearing at an earlier date. 

(II) WRITTEN STATEMENT.—A witness 

appearing before the joint committee shall file a 

written statement of proposed testimony at least 

2 calendar days before the appearance of the witness, unless the requirement is waived by the CoChairs, following their determination that there 

is good cause for failure to comply with such 

requirement. 

(G) TECHNICAL ASSISTANCE.—Upon written request of 

the Co-Chairs, a Federal agency shall provide technical 

assistance to the joint committee in order for the joint 

committee to carry out its duties. 

(c) STAFF OF JOINT COMMITTEE.— 

(1) IN GENERAL.—The Co-Chairs of the joint committee 

may jointly appoint and fix the compensation of staff as they 

deem necessary, within the guidelines for employees of the 

Senate and following all applicable rules and employment 

requirements of the Senate. 

(2) ETHICAL STANDARDS.—Members on the joint committee 

who serve in the House of Representatives shall be governed 

by the ethics rules and requirements of the House. Members 

of the Senate who serve on the joint committee and staff of 

the joint committee shall comply with the ethics rules of the 

Senate. 

Compliance. 

Deadlines. 

Deadlines. 

Deadline. 


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(d) TERMINATION.—The joint committee shall terminate on 

January 31, 2012. 

SEC. 402. EXPEDITED CONSIDERATION OF JOINT COMMITTEE RECOMMENDATIONS. 

(a) INTRODUCTION.—If approved by the majority required by 

section 401(b)(3)(B)(ii), the proposed legislative language submitted 

pursuant to section 401(b)(3)(B)(iv) shall be introduced in the Senate 

(by request) on the next day on which the Senate is in session 

by the majority leader of the Senate or by a Member of the Senate 

designated by the majority leader of the Senate and shall be introduced in the House of Representatives (by request) on the next 

legislative day by the majority leader of the House or by a Member 

of the House designated by the majority leader of the House. 

(b) CONSIDERATION IN THE HOUSE OF REPRESENTATIVES.— 

(1) REFERRAL AND REPORTING.—Any committee of the 

House of Representatives to which the joint committee bill 

is referred shall report it to the House without amendment 

not later than December 9, 2011. If a committee fails to report 

the joint committee bill within that period, it shall be in order 

to move that the House discharge the committee from further 

consideration of the bill. Such a motion shall not be in order 

after the last committee authorized to consider the bill reports 

it to the House or after the House has disposed of a motion 

to discharge the bill. The previous question shall be considered 

as ordered on the motion to its adoption without intervening 

motion except 20 minutes of debate equally divided and controlled by the proponent and an opponent. If such a motion 

is adopted, the House shall proceed immediately to consider 

the joint committee bill in accordance with paragraphs (2) 

and (3). A motion to reconsider the vote by which the motion 

is disposed of shall not be in order. 

(2) PROCEEDING TO CONSIDERATION.—After the last committee authorized to consider a joint committee bill reports 

it to the House or has been discharged (other than by motion) 

from its consideration, it shall be in order to move to proceed 

to consider the joint committee bill in the House. Such a motion 

shall not be in order after the House has disposed of a motion 

to proceed with respect to the joint committee bill. The previous 

question shall be considered as ordered on the motion to its 

adoption without intervening motion. A motion to reconsider 

the vote by which the motion is disposed of shall not be in 

order. 

(3) CONSIDERATION.—The joint committee bill shall be 

considered as read. All points of order against the joint committee bill and against its consideration are waived. The previous question shall be considered as ordered on the joint 

committee bill to its passage without intervening motion except 

2 hours of debate equally divided and controlled by the proponent and an opponent and one motion to limit debate on 

the joint committee bill. A motion to reconsider the vote on 

passage of the joint committee bill shall not be in order. 

(4) VOTE ON PASSAGE.—The vote on passage of the joint 

committee bill shall occur not later than December 23, 2011. 

(c) EXPEDITED PROCEDURE IN THE SENATE.— 

(1) COMMITTEE CONSIDERATION.—A joint committee bill 

introduced in the Senate under subsection (a) shall be jointly 

Reports. 

Deadline. 

Deadline. 

Waiver. 

2 USC 900 note. 


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referred to the committee or committees of jurisdiction, which 

committees shall report the bill without any revision and with 

a favorable recommendation, an unfavorable recommendation, 

or without recommendation, not later than December 9, 2011. 

If any committee fails to report the bill within that period, 

that committee shall be automatically discharged from consideration of the bill, and the bill shall be placed on the appropriate 

calendar. 

(2) MOTION TO PROCEED.—Notwithstanding Rule XXII of 

the Standing Rules of the Senate, it is in order, not later 

than 2 days of session after the date on which a joint committee 

bill is reported or discharged from all committees to which 

it was referred, for the majority leader of the Senate or the 

majority leader’s designee to move to proceed to the consideration of the joint committee bill. It shall also be in order 

for any Member of the Senate to move to proceed to the consideration of the joint committee bill at any time after the conclusion of such 2-day period. A motion to proceed is in order 

even though a previous motion to the same effect has been 

disagreed to. All points of order against the motion to proceed 

to the joint committee bill are waived. The motion to proceed 

is not debatable. The motion is not subject to a motion to 

postpone. A motion to reconsider the vote by which the motion 

is agreed to or disagreed to shall not be in order. If a motion 

to proceed to the consideration of the joint committee bill is 

agreed to, the joint committee bill shall remain the unfinished 

business until disposed of. 

(3) CONSIDERATION.—All points of order against the joint 

committee bill and against consideration of the joint committee 

bill are waived. Consideration of the joint committee bill and 

of all debatable motions and appeals in connection therewith 

shall not exceed a total of 30 hours which shall be divided 

equally between the Majority and Minority Leaders or their 

designees. A motion further to limit debate on the joint committee bill is in order, shall require an affirmative vote of 

three-fifths of the Members duly chosen and sworn, and is 

not debatable. Any debatable motion or appeal is debatable 

for not to exceed 1 hour, to be divided equally between those 

favoring and those opposing the motion or appeal. All time 

used for consideration of the joint committee bill, including 

time used for quorum calls and voting, shall be counted against 

the total 30 hours of consideration. 

(4) NO AMENDMENTS.—An amendment to the joint committee bill, or a motion to postpone, or a motion to proceed 

to the consideration of other business, or a motion to recommit 

the joint committee bill, is not in order. 

(5) VOTE ON PASSAGE.—If the Senate has voted to proceed 

to the joint committee bill, the vote on passage of the joint 

committee bill shall occur immediately following the conclusion 

of the debate on a joint committee bill, and a single quorum 

call at the conclusion of the debate if requested. The vote 

on passage of the joint committee bill shall occur not later 

than December 23, 2011. 

(6) RULINGS OF THE CHAIR ON PROCEDURE.—Appeals from 

the decisions of the Chair relating to the application of the 

rules of the Senate, as the case may be, to the procedure 

Deadline. 

Waiver. 

Deadline. 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 265 

relating to a joint committee bill shall be decided without 

debate. 

(d) AMENDMENT.—The joint committee bill shall not be subject 

to amendment in either the House of Representatives or the Senate. 

(e) CONSIDERATION BY THE OTHER HOUSE.— (1) IN GENERAL.—If, before passing the joint committee 

bill, one House receives from the other a joint committee bill— 

(A) the joint committee bill of the other House shall 

not be referred to a committee; and 

(B) the procedure in the receiving House shall be the 

same as if no joint committee bill had been received from 

the other House until the vote on passage, when the joint 

committee bill received from the other House shall supplant 

the joint committee bill of the receiving House. 

(2) REVENUE MEASURE.—This subsection shall not apply 

to the House of Representatives if the joint committee bill 

received from the Senate is a revenue measure. 

(f) RULES TO COORDINATE ACTION WITH OTHER HOUSE.— (1) TREATMENT OF JOINT COMMITTEE BILL OF OTHER

HOUSE.—If the Senate fails to introduce or consider a joint 

committee bill under this section, the joint committee bill of 

the House shall be entitled to expedited floor procedures under 

this section. 

(2) TREATMENT OF COMPANION MEASURES IN THE SENATE.— If following passage of the joint committee bill in the Senate, 

the Senate then receives the joint committee bill from the 

House of Representatives, the House-passed joint committee 

bill shall not be debatable. The vote on passage of the joint 

committee bill in the Senate shall be considered to be the 

vote on passage of the joint committee bill received from the 

House of Representatives. 

(3) VETOES.—If the President vetoes the joint committee 

bill, debate on a veto message in the Senate under this section 

shall be 1 hour equally divided between the majority and 

minority leaders or their designees. 

(g) LOSS OF PRIVILEGE.—The provisions of this section shall 

cease to apply to the joint committee bill if— 

(1) the joint committee fails to vote on the report or proposed legislative language required under section 401(b)(3)(B)(i) 

not later than November 23, 2011; or 

(2) the joint committee bill does not pass both Houses 

not later than December 23, 2011. 

SEC. 403. FUNDING. 

Funding for the joint committee shall be derived in equal portions from— 

(1) the applicable accounts of the House of Representatives; 

and 

(2) the contingent fund of the Senate from the appropriations account ‘‘Miscellaneous Items’’, subject to the rules and 

regulations of the Senate. 

SEC. 404. RULEMAKING. 

The provisions of this title are enacted by Congress— 

(1) as an exercise of the rulemaking power of the House 

of Representatives and the Senate, respectively, and as such 

they shall be considered as part of the rules of each House, 

respectively, or of that House to which they specifically apply, 

2 USC 900 note. 

2 USC 900 note. 

Deadlines. 


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and such rules shall supersede other rules only to the extent 

that they are inconsistent therewith; and 

(2) with full recognition of the constitutional right of either 

House to change such rules (so far as relating to such House) 

at any time, in the same manner, and to the same extent 

as in the case of any other rule of such House. 

TITLE V—PELL GRANT AND STUDENT 

LOAN PROGRAM CHANGES 

SEC. 501. FEDERAL PELL GRANTS. 

Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 

(20 U.S.C. 1070a(b)(7)(A)(iv)) is amended— 

(1) in subclause (II), by striking ‘‘$3,183,000,000’’ and inserting ‘‘$13,183,000,000’’; and (2) in subclause (III), by striking ‘‘$0’’ and inserting ‘‘$7,000,000,000’’. 

SEC. 502. TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STUDENTS. 

Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 

1087e(a)) is amended by adding at the end the following new 

paragraph: 

‘‘(3) TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STUDENTS.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B) and 

notwithstanding any provision of this part or part B, for 

any period of instruction beginning on or after July 1, 

2012— 

‘‘(i) a graduate or professional student shall not 

be eligible to receive a Federal Direct Stafford loan 

under this part; and 

‘‘(ii) the maximum annual amount of Federal 

Direct Unsubsidized Stafford loans such a student may 

borrow in any academic year (as defined in section 

481(a)(2)) or its equivalent shall be the maximum 

annual amount for such student determined under section 428H, plus an amount equal to the amount of 

Federal Direct Stafford loans the student would have 

received in the absence of this subparagraph. 

‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply 

to an individual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 484(b).’’. 

SEC. 503. TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES. 

Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C. 

1087e(b)(8)) is amended— 

(1) in subparagraph (A)— 

(A) by amending the header to read as follows: ‘‘(A) 

INCENTIVES FOR LOANS DISBURSED BEFORE JULY 1, 2012.— 

’’; and 

(B) by inserting ‘‘with respect to loans for which the 

first disbursement of principal is made before July 1, 2012,’’ 

after ‘‘of this part’’; 


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PUBLIC LAW 112–25—AUG. 2, 2011 125 STAT. 267 

LEGISLATIVE HISTORY—S. 365: 

CONGRESSIONAL RECORD, Vol. 157 (2011): 

Feb. 17, considered and passed Senate. 

Aug. 1, considered and passed House, amended. 

Aug. 2, Senate concurred in House amendment. 

Æ 

(2) in subparagraph (B), by inserting ‘‘with respect to loans 

for which the first disbursement of principal is made before 

July 1, 2012’’ after ‘‘repayment incentives’’; and 

(3) by adding at the end the following new subparagraph: 

‘‘(C) NO REPAYMENT INCENTIVES FOR NEW LOANS DIS- BURSED ON OR AFTER JULY 1, 2012.—Notwithstanding any 

other provision of this part, the Secretary is prohibited 

from authorizing or providing any repayment incentive not 

otherwise authorized under this part to encourage on-time 

repayment of a loan under this part for which the first 

disbursement of principal is made on or after July 1, 2012, 

including any reduction in the interest or origination fee 

rate paid by a borrower of such a loan, except that the 

Secretary may provide for an interest rate reduction for 

a borrower who agrees to have payments on such a loan 

automatically electronically debited from a bank account.’’. 

SEC. 504. INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING 

AND MASTER CALENDAR EXCEPTION. 

Sections 482(c) and 492 of the Higher Education Act of 1965 

(20 U.S.C. 1089(c), 1098a) shall not apply to the amendments made 

by this title, or to any regulations promulgated under those amendments. 

Approved August 2, 2011. 

20 USC 1089 

note. 


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