I

104TH CONGRESS

1ST SESSION H. R. 1110

To amend the Congressional Budget Act of 1974 and the Balanced Budget

and Emergency Deficit Control Act of 1985 to limit the rate of growth

of Federal outlays to 2 percent per year.

IN THE HOUSE OF REPRESENTATIVES

MARCH 2, 1995

Mr. ALLARD (for himself, Mr. HERGER, Mr. CRANE, and Mr. DUNCAN) introduced the following bill; which was referred to the Committee on the

Budget and, in addition, to the Committee on Rules, for a period to be

subsequently determined by the Speaker, in each case for consideration

of such provisions as fall within the jurisdiction of the committee

concerned

A BILL

To amend the Congressional Budget Act of 1974 and the

Balanced Budget and Emergency Deficit Control Act

of 1985 to limit the rate of growth of Federal outlays

to 2 percent per year.

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

3 SECTION 1. MAXIMUM SPENDING AMOUNTS.

4 Section 601(a)(1) of the Congressional Budget Act

5 of 1974 is amended to read as follows:
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1 ‘‘(1) MAXIMUM SPENDING AMOUNT.—The term

2 ‘maximum spending amount’ means—

3 ‘‘(A) with respect to fiscal year 1996,

4 $1,562,000,000,000 in outlays;

5 ‘‘(B) with respect to fiscal year 1997,

6 $1,593,000,000,000 in outlays;

7 ‘‘(C) with respect to fiscal year 1998,

8 $1,625,000,000,000 in outlays;

9 ‘‘(D) with respect to fiscal year 1999,

10 $1,658,000,000,000 in outlays;

11 ‘‘(E) with respect to fiscal year 2000,

12 $1,691,000,000,000 in outlays;

13 ‘‘(F) with respect to fiscal year 2001,

14 $1,725,000,000,000 in outlays; and

15 ‘‘(G) with respect to fiscal year 2002,

16 $1,760,000,000,000 in outlays.’’.

17 SEC. 2. ENFORCING MAXIMUM SPENDING SEQUESTRATION.

18 (a) SEQUESTRATION.—Section 253(a) of the Bal19 anced Budget and Emergency Deficit Control Act of 1985

20 is amended to read as follows:

21 ‘‘(a) SEQUESTRATION.—Within 15 days after Con22 gress adjourns to end a session (other than the One Hun23 dred Fourth Congress), and on the same day as sequestra24 tion (if any) under sections 251 and 252, but after any

25 sequestration required by those sections, there shall be a
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1 sequestration (if necessary) to reduce total Federal spend2 ing to the maximum permissible level as set forth in sec3 tion 601(a)(1) of the Congressional Budget Act of 1974.’’.

4 (b) CONFORMING AMENDMENT TO HEADING.—The

5 section heading of section 253 of the Balanced Budget and

6 Emergency Deficit Control Act of 1985 is amended to

7 read as follows:

8 ‘‘SEC. 253. ENFORCING MAXIMUM SPENDING LIMITS.’’.

9 (c) ADDITIONAL CONFORMING AMENDMENTS.—Sec10 tion 253 of the Balanced Budget and Emergency Deficit

11 Control Act of 1985 is amended—

12 (1) by repealing subsections (b), (g), and (h),

13 and by redesignating subsections (c), (d), (e), and

14 (f), as subsections (b), (c), (d), and (e), respectively;

15 (2) in subsection (b) (as redesignated), by

16 amending the first sentence to read as follows: ‘‘To

17 reduce total Federal spending to the maximum per18 missible level for a budget year, 20 percent of the

19 required outlay reductions shall be obtained from

20 non-exempt defense accounts (accounts designated

21 as function 050 in the President’s fiscal year 1995

22 budget submission) and 80 percent from non-ex23 empt, non-defense accounts (all other non-exempt

24 accounts).’’;
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1 (3) in subsection (c) (as redesignated), by strik2 ing ‘‘subsection (c)’’ and inserting ‘‘subsection (b)’’;

3 and

4 (4) in subsection (e) (as redesignated), by strik5 ing ‘‘(b), (c), (d), and (e)’’ and inserting ‘‘(b), (c),

6 and (d)’’ and by striking ‘‘(d) or (e)’’ and inserting

7 ‘‘(c) or (d)’’.

8 (d) LOOK-BACK SEQUESTER.—Section 253 of the

9 Balanced Budget and Emergency Deficit Control Act of

10 1985 is amended by adding at the end the following new

11 subsection:

12 ‘‘(f) LOOK-BACK SEQUESTER.—

13 ‘‘(1) IN GENERAL.—On July 1 of each fiscal

14 year, the Director of OMB shall determine if laws

15 effective during the current fiscal year will cause the

16 spending to exceed the maximum spending amount

17 for such fiscal year. If the limit is exceeded, there

18 shall be a preliminary sequester on July 1 to elimi19 nate the excess.

20 ‘‘(2) PERMANENT SEQUESTER.—Budget au21 thority sequestered on July 1 pursuant to paragraph

22 (1) shall be permanently canceled on July 15.

23 ‘‘(3) NO MARGIN.—The margin for determining

24 a sequester under this subsection shall be zero.
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1 ‘‘(4) SEQUESTRATION PROCEDURES.—The pro2 vision of subsections (b), (c), and (d) of this section

3 shall apply to a sequester under this subsection.’’.

4 (e) REPORTS.—Section 254 of the Balanced Budget

5 and Emergency Deficit Control Act of 1985 is amended—

6 (1) by striking subsection (c);

7 (2) in subsection (d)(1), by striking ‘‘deficit se8 questration’’ and inserting ‘‘total spending seques9 tration’’;

10 (3) in subsection (d) by repealing paragraph (4)

11 and inserting the following new paragraph:

12 ‘‘(4) TOTAL SPENDING SEQUESTRATION RE13 PORTS.—The preview reports shall set forth for the

14 budget year estimates for each of the following:

15 ‘‘(A) The amount of reductions required

16 from defense accounts and the reductions re17 quired from non-defense accounts.

18 ‘‘(B) The sequestration percentage nec19 essary to achieve the required reduction in de20 fense accounts under section 253(c).

21 ‘‘(C) The reductions required under sec22 tions 253(d)(1) and 253(d)(2).

23 ‘‘(D) The sequestration percentage nec24 essary to achieve the required reduction in non25 defense accounts under section 253(d)(3).’’; and
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1 (4) in subsection (g)(3), by striking ‘‘DEFICIT’’

2 and inserting ‘‘TOTAL SPENDING’’ in the side head3 ing and in the first sentence by striking ‘‘deficit’’

4 and inserting ‘‘total spending’’.

5 (f) CONFORMING AMENDMENT TO TABLE OF CON6 TENTS.—The item relating to section 253 is amended by

7 striking ‘‘Enforcing deficit targets’’ and inserting ‘‘En8 forcing maximum spending limits’’.

9 SEC. 3. TOTAL SPENDING POINT OF ORDER.

10 (a) TOTAL SPENDING POINT OF ORDER.—Section

11 605(b) of the Congressional Budget Act of 1974 is amend12 ed to read as follows:

13 ‘‘(b) TOTAL SPENDING POINT OF ORDER.—

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

15 the House of Representatives or the Senate to con16 sider any bill, joint resolution, amendment, or con17 ference report that includes any provision that would

18 result in total spending for a fiscal year that exceeds

19 the maximum permissible total spending amount for

20 such fiscal year as set forth in section 601(a)(1).

21 ‘‘(2) WAIVER OR SUSPENSION.—This subsection

22 may be waived or suspended in the House of Rep23 resentatives or the Senate only by the affirmative
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1 vote of three-fifths of its Members, duly chosen and

2 sworn.’’.

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