`[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2084 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2084

To reform Federal budget procedures, to impose spending safeguards, to 
  combat waste, fraud, and abuse, to account for accurate Government 
                 agency costs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2007

  Mr. Hensarling (for himself, Mr. Ryan of Wisconsin, Mr. Campbell of 
California, Mr. Herger, Mr. Barton of Texas, Mr. Bilbray, Mr. Shadegg, 
 Mr. Lamborn, Mr. Burton of Indiana, Mr. Cantor, Mr. Goode, Mr. Akin, 
Mr. Gingrey, Mr. Poe, Mr. Pitts, Mr. Price of Georgia, Mrs. Blackburn, 
  Mr. Garrett of New Jersey, Mr. Mack, Mr. Rohrabacher, Mr. Brady of 
 Texas, Mr. Radanovich, Mr. Mario Diaz-Balart of Florida, Mr. Cole of 
 Oklahoma, Mr. King of Iowa, Mr. Feeney, Ms. Foxx, and Mr. Barrett of 
 South Carolina) introduced the following bill; which was referred to 
   the Committee on the Budget, and in addition to the Committees on 
  Rules, Ways and Means, Appropriations, 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 reform Federal budget procedures, to impose spending safeguards, to 
  combat waste, fraud, and abuse, to account for accurate Government 
                 agency costs, and for other purposes.

    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 ``Family Budget 
Protection Act of 2007''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
                  TITLE I--A SIMPLE AND BINDING BUDGET

                  Subtitle A--Joint Budget Resolutions

Sec. 101. Declaration of purposes for the Budget Act.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered.
Sec. 105. Amendments to effectuate joint resolutions on the budget.
                 Subtitle B--Budgeting for Emergencies

Sec. 111. Purpose.
Sec. 112. Repeal of adjustments for emergencies.
Sec. 113. OMB emergency criteria.
Sec. 114. Development of guidelines for application of emergency 
                            definition.
Sec. 115. Reserve Fund for emergencies in President's budget.
Sec. 116. Adjustments and Reserve Fund for emergencies in joint budget 
                            resolutions.
Sec. 117. Application of section 306 to emergencies in excess of 
                            amounts in Reserve Fund.
Sec. 118. Up-to-date tabulations.
Sec. 119. Prohibition on amendments to emergency Reserve Fund.
                   Subtitle C--Biennial Budget Option

Sec. 121. Effective date.
Sec. 122. Revision of timetable.
Sec. 123. Amendments to the Congressional Budget and Impoundment 
                            Control Act of 1974.
Sec. 124. Amendments to rules of the House of Representatives.
Sec. 125. Amendments to title 31, United States Code.
Sec. 126. Two-year appropriations; title and style of appropriation 
                            Acts.
Sec. 127. Multiyear authorizations.
Sec. 128. Government strategic and performance plans on a biennial 
                            basis.
Sec. 129. Biennial appropriation bills.
Sec. 130. Assistance by Federal agencies to standing committees of the 
                            Senate and the House of Representatives.
             Subtitle D--Prevention of Government Shutdown

Sec. 141. Amendment to title 31.
                        Subtitle E--The Baseline

Sec. 151. Elimination of inflation adjustment.
Sec. 152. The President's budget.
Sec. 153. The Congressional budget.
Sec. 154. Congressional Budget Office reports to committees.
Sec. 155. Treatment of emergencies.
             TITLE II--PUTTING A LID ON THE FEDERAL BUDGET

   Subtitle A--Spending Safeguards on the Growth of Entitlements and 
                              Mandatories

Sec. 201. Spending caps on growth of entitlements and mandatories.
Sec. 202. Exempt programs and activities.
Sec. 203. Exceptions, limitations, and special rules.
Sec. 204. Point of order.
Sec. 205. Technical and conforming amendments.
Sec. 206. Establishment of budget protection mandatory Account.
               Subtitle B--Discretionary Spending Limits

Sec. 211. Enforcing discretionary spending limits.
Sec. 212. Establishment of budget protection discretionary Account.
Sec. 213. Revenue adjustment.
               Subtitle C--Long-Term Unfunded Obligations

Sec. 221. Long-term unfunded obligations.
Sec. 222. Points of order.
Sec. 223. Social Security.
              TITLE III--COMBATING WASTE, FRAUD, AND ABUSE

                         Subtitle A--Sunsetting

Sec. 301. Reauthorization of discretionary programs and unearned 
                            entitlements.
Sec. 302. Point of order.
Sec. 303. Decennial sunsetting.
                 Subtitle B--Legislative Line-Item Veto

Sec. 311. Legislative line-item veto.
Sec. 312. Technical and conforming amendments.
Sec. 313. Sense of Congress on abuse of proposed cancellations.
Sec. 314. Amending House rules to require that rescission bills always 
                            be considered under open rules.
      Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse

Sec. 331. Establishment of Commission.
Sec. 332. Duties of the Commission.
Sec. 333. Powers of the Commission.
Sec. 334. Commission personnel matters.
Sec. 335. Termination of the Commission.
Sec. 336. Congressional consideration of reform proposals.
Sec. 337. Authorization of appropriations.
                     TITLE IV--TRUTH IN ACCOUNTING

Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal 
               Employees and Uniformed Services Personnel

Sec. 401. Civil Service Retirement System.
Sec. 402. Central Intelligence Agency Retirement and Disability System.
Sec. 403. Foreign Service Retirement and Disability System.
Sec. 404. Public Health Service Commissioned Corps Retirement System.
Sec. 405. National Oceanic and Atmospheric Administration Commissioned 
                            Officer Corps Retirement System.
Sec. 406. Coast Guard Military Retirement System.
 Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs 
                         for Federal Employees

Sec. 411. Federal employees health benefits fund.
Sec. 412. Funding Uniformed Services health benefits for all retirees.
Sec. 413. Effective date.
                    Subtitle C--Earmark Transparency

Sec. 421. Prohibition on obligation of funds for earmarks included only 
                            in Congressional reports.
Sec. 422. Definitions.
                  Subtitle D--Public Debt Limit Reform

Sec. 431. Limit on public debt.
Sec. 432. Repeal of the Gephardt Rule.
                   Subtitle E--Risk-Assumed Budgeting

Sec. 441. Federal insurance programs.
         TITLE V--MAINTAINING A COMMITMENT TO THE FAMILY BUDGET

               Subtitle A--Further Enforcement Amendments

Sec. 501. Super-majority points of order in the House of 
                            Representatives and the Senate.
Sec. 502. Budget resolution enforcement point of order.
Sec. 503. Point of order waiver protection.
                       Subtitle B--The Byrd Rule

Sec. 511. Limitation on Byrd Rule.
     Subtitle C--Treatment of Extraneous Appropriations in Omnibus 
                         Appropriation Measures

Sec. 521. Treatment of extraneous appropriations.

SEC. 2. EFFECTIVE DATE.

    Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall become effective on the date of 
enactment of this Act and shall apply with respect to fiscal years 
beginning after September 30, 2008.

                  TITLE I--A SIMPLE AND BINDING BUDGET

                  Subtitle A--Joint Budget Resolutions

SEC. 101. DECLARATION OF PURPOSES FOR THE BUDGET ACT.

    Paragraphs (1) and (2) of section 2 of the Congressional Budget and 
Impoundment Control Act of 1974 are amended to read as follows:
            ``(1) to assure effective control over the budgetary 
        process;
            ``(2) to facilitate the determination each year of the 
        appropriate level of Federal revenues and expenditures by the 
        Congress and the President;''.

SEC. 102. THE TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 is amended to 
read as follows:

                              ``timetable

    ``Sec. 300.  The timetable with respect to the congressional budget 
process for any fiscal year is as follows:


 
          ``On or before:                  Action to be completed:
 
First Monday in February...........  President submits his budget
February 15........................  Congressional Budget Office submits
                                      report to Budget Committees
Not later than 6 weeks after         Committees submit views and
 President submits budget.            estimates to Budget Committees
April 1............................  Budget Committees report joint
                                      resolution on the budget
April 15...........................  Congress completes action on joint
                                      resolution on the budget
 



 
          ``On or before:                   Action to be completed:
 
June 10............................  House Appropriations Committee
                                      reports last annual appropriation
                                      bill
June 15............................  Congress completes action on
                                      reconciliation legislation
June 30............................  House completes action on annual
                                      appropriation bills
October 1..........................  Fiscal year begins''.
 

SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

    (a) Content of Annual Joint Resolutions on the Budget.--Section 
301(a)(4) of the Congressional Budget Act of 1974 is amended to read as 
follows:
            ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending (excluding interest), and interest; 
        and for emergencies (for the reserve fund in section 316(b) and 
        for military operations in section 316(c));''.
    (b) Additional Matters in Joint Resolution.--Section 301(b) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraphs (1), (4), and (6) through (9).
            (2) Redesignate paragraphs (2), (3), and (5) accordingly, 
        insert ``and'' after the new paragraph (1), and in the new 
        paragraph (2) strike the semicolon and insert a period.
    (c) Required Contents of Report.--Section 301(e)(2) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A), (B), (C), (D), (E), and 
        (F) as subparagraphs (B), (C), (E), (F), (H), and (I), 
        respectively.
            (2) In subparagraph (C) (as redesignated), strike 
        ``mandatory'' and insert ``direct spending''.
            (3) After subparagraph (C) (as redesignated), insert the 
        following new subparagraph:
                    ``(D) a measure, as a percentage of gross domestic 
                product, of total outlays, total Federal revenues, the 
                surplus or deficit, and new outlays for nondefense 
                discretionary spending, defense spending, and direct 
                spending as set forth in such resolution;''.
            (4) After subparagraph (F) (as redesignated), insert the 
        following new subparagraph:
                    ``(G) if the joint resolution on the budget 
                includes any allocation to a committee other than the 
                Committee on Appropriations of levels in excess of 
                current law levels, a justification for not subjecting 
                any program, project, or activity (for which the 
                allocation is made) to annual discretionary 
                appropriations;''.
    (d) Additional Contents of Report.--Section 301(e)(3) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A) and (B) as subparagraphs 
        (B) and (C), respectively, strike subparagraphs (C) and (D), 
        and redesignate subparagraph (E) as subparagraph (D) and strike 
        the period and insert ``; and''.
            (2) Before subparagraph (B), insert the following new 
        subparagraph:
                    ``(A) new budget authority and outlays for each 
                major functional category, based on allocations of the 
                total levels set forth pursuant to subsection 
                (a)(1);''.
            (3) At the end, add the following new subparagraph:
                    ``(E) set forth, if required by subsection (f), the 
                calendar year in which, in the opinion of the Congress, 
                the goals for reducing unemployment set forth in 
                section 4(b) of the Employment Act of 1946 should be 
                achieved.''.
    (e) President's Budget Submission to the Congress.--(1) The first 
two sentences of section 1105(a) of title 31, United States Code, are 
amended to read as follows: ``On or after the first Monday in January 
but not later than the first Monday in February of each year the 
President shall submit a budget of the United States Government for the 
following fiscal year which shall set forth the following levels:
            ``(A) totals of new budget authority and outlays;
            ``(B) total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees;
            ``(C) the surplus or deficit in the budget;
            ``(D) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending (excluding interest), and interest, 
        and for emergencies (for the reserve fund in section 316(b) and 
        for military operations in section 316(c)); and
            ``(E) the public debt.
Each budget submission shall include a budget message and summary and 
supporting information and, as a separately delineated statement, the 
levels requires in the preceding sentence for at least each of the 4 
ensuing fiscal years.''.
    (2) The third sentence of section 1105(a) of title 31, United 
States Code, is amended by inserting ``submission'' after ``budget''.
    (f) Limitation on Contents of Budget Resolutions.--Section 305 of 
the Congressional Budget Act of 1974 is amended by adding at the end 
the following new subsection:
    ``(e) Limitation on Contents.--(1) It shall not be in order in the 
House of Representatives or in the Senate to consider any joint 
resolution on the budget or any amendment thereto or conference report 
thereon that contains any matter referred to in paragraph (2).
    ``(2) Any joint resolution on the budget or any amendment thereto 
or conference report thereon that contains any matter not permitted in 
section 301(a) or (b) shall not be treated in the House of 
Representatives or the Senate as a budget resolution under subsection 
(a) or (b) or as a conference report on a budget resolution under 
subsection (c) of this section.''.

SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED.

    (a) Amendments to Section 302.--Section 302 of the Congressional 
Budget Act of 1974 is amended--
            (1) in subsection (a), by striking paragraph (5); and
            (2) in subsection (f)(1)(A), by striking ``as reported''.
    (b) Amendments to Section 303 and Conforming Amendments.--(1) 
Section 303 of the Congressional Budget Act of 1974 is amended by 
striking ``(a) In General.--'', by striking ``has been agreed to'' and 
inserting ``takes effect in subsection (a), and by striking subsections 
(b) and (c); and
    (2) by striking its section heading and inserting the following new 
section heading: ``consideration of budget-related legislation before 
budget becomes law''.
    (c) Additional Amendments.--(1) Section 302(g)(1) of the 
Congressional Budget Act of 1974 is amended by striking ``and, after 
April 15, section 303''.
    (2)(A) Section 904(c)(1) of the Congressional Budget Act of 1974 is 
amended by inserting ``303,'' before ``305(b)(2),''.
    (B) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``303,'' before ``305(b)(2),''.
    (d) Expedited Procedures Upon Veto of Joint Resolution on the 
Budget.--(1) Title III of the Congressional Budget Act of 1974 (as 
amended by section 116) is further amended by adding after section 316 
the following new section:

   ``expedited procedures upon veto of joint resolution on the budget

    ``Sec. 317.  (a) Special Rule.--If the President vetoes a joint 
resolution on the budget for a fiscal year, the majority leader of the 
House of Representatives or Senate (or his designee) may introduce a 
concurrent resolution on the budget or joint resolution on the budget 
for such fiscal year. If the Committee on the Budget of either House 
fails to report such concurrent or joint resolution referred to it 
within five calendar days (excluding Saturdays, Sundays, or legal 
holidays except when that House of Congress is in session) after the 
date of such referral, the committee shall be automatically discharged 
from further consideration of such resolution and such resolution shall 
be placed on the appropriate calendar.
    ``(b) Procedure in the House of Representatives and the Senate.--
            ``(1) Except as provided in paragraph (2), the provisions 
        of section 305 for the consideration in the House of 
        Representatives and in the Senate of joint resolutions on the 
        budget and conference reports thereon shall also apply to the 
        consideration of concurrent resolutions on the budget 
        introduced under subsection (a) and conference reports thereon.
            ``(2) Debate in the Senate on any concurrent resolution on 
        the budget or joint resolution on the budget introduced under 
        subsection (a), and all amendments thereto and debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 10 hours and in the House such debate shall be 
        limited to not more than 3 hours.
    ``(c) Contents of Concurrent Resolutions.--Any concurrent 
resolution on the budget introduced under subsection (a) shall be in 
compliance with section 301.
    ``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a 
concurrent resolution on the budget described in subsection (a) is 
agreed to, then the aggregates, allocations, and reconciliation 
directives (if any) contained in the report accompanying such 
concurrent resolution or in such concurrent resolution shall be 
considered to be the aggregates, allocations, and reconciliation 
directives for all purposes of sections 302, 303, and 311 for the 
applicable fiscal years and such concurrent resolution shall be deemed 
to be a joint resolution for all purposes of this title and the Rules 
of the House of Representatives and any reference to the date of 
enactment of a joint resolution on the budget shall be deemed to be a 
reference to the date agreed to when applied to such concurrent 
resolution.''.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
inserting after the item relating to section 316 the following new 
item:

``Sec. 317. Expedited procedures upon veto of joint resolution on the 
                            budget.''.

SEC. 105. AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE BUDGET.

    (a) Definition.--Paragraph (4) of section 3 of the Congressional 
Budget Act of 1974 is amended to read as follows:
            ``(4) the term `joint resolution on the budget' means--
                    ``(A) a joint resolution setting forth the budget 
                for the United States Government for a fiscal year as 
                provided in section 301; and
                    ``(B) any other joint resolution revising the 
                budget for the United States Government for a fiscal 
                year as described in section 304.''.
    (b) Additional Amendments to the Congressional Budget and 
Impoundment Control Act of 1974.--(1)(A) Sections 301, 302, 303, 305, 
308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget Act 
of 1974 (2 U.S.C. 621 et seq.) are amended by striking ``concurrent'' 
each place it appears and inserting ``joint''.
    (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the 
Congressional Budget Act of 1974 are amended by striking ``most 
recently agreed to concurrent resolution on the budget'' each place it 
occurs and inserting ``most recently enacted joint resolution on the 
budget or agreed to concurrent resolution on the budget (as 
applicable)''.
    (ii) The section heading of section 301 is amended by striking 
``adoption of concurrent resolution'' and inserting ``joint 
resolutions''; and
    (iii) Section 304 of such Act is amended to read as follows:

             ``permissible revisions of budget resolutions

    ``Sec. 304.  At any time after the joint resolution on the budget 
for a fiscal year has been enacted pursuant to section 301, and before 
the end of such fiscal year, the two Houses and the President may enact 
a joint resolution on the budget which revises or reaffirms the joint 
resolution on the budget for such fiscal year most recently enacted.''.
    (C) Sections 302, 303, 310, and 311, of such Act are amended by 
striking ``agreed to'' each place it appears and by inserting 
``enacted''.
    (2)(A) Paragraph (4) of section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B) The table of contents set forth in section 1(b) of such Act is 
amended--
            (i) in the item relating to section 301, by striking 
        ``adoption of concurrent resolution'' and inserting ``joint 
        resolutions'';
            (ii) by striking the item relating to section 303 and 
        inserting the following:

``Sec. 303. Consideration of budget-related legislation before budget 
                            becomes law.'';
            (iii) by striking ``concurrent'' and inserting ``joint'' in 
        the item relating to section 305.
    (c) Conforming Amendments to the Rules of the House of 
Representatives.--Clauses 1(d)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), and 
4(f)(2) of rule X, clause 10 of rule XVIII, clause 10 of rule XX, and 
clauses 7 and 10 of rule XXI of the Rules of the House of 
Representatives are amended by striking ``concurrent'' each place it 
appears and inserting ``joint''.
    (d) Conforming Amendments to the Balanced Budget and Emergency 
Deficit Control Act of 1985.--Section 258C(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is 
amended by striking ``concurrent'' and inserting ``joint''.
    (e) Conforming Amendments to Section 310 Regarding Reconciliation 
Directives.--(1) The side heading of section 310(a) of the 
Congressional Budget Act of 1974 (as amended by section 105(b)) is 
further amended by inserting ``Joint Explanatory Statement Accompanying 
Conference Report on'' before ``Joint''.
    (2) Section 310(a) of such Act is amended by striking ``A'' and 
inserting ``The joint explanatory statement accompanying the conference 
report on a''.
    (3) The first sentence of section 310(b) of such Act is amended by 
striking ``If'' and inserting ``If the joint explanatory statement 
accompanying the conference report on''.
    (4) Section 310(c)(1) of such Act is amended by inserting ``the 
joint explanatory statement accompanying the conference report on'' 
after ``pursuant to''.
    (f) Conforming Amendments to Section 3 Regarding Direct Spending.--
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 term `direct spending' has the meaning given to 
        such term in section 250(c)(8) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.

                 Subtitle B--Budgeting for Emergencies

SEC. 111. PURPOSE.

    The purposes of this subtitle are to--
            (1) develop budgetary and fiscal procedures for 
        emergencies;
            (2) subject spending for emergencies to budgetary 
        procedures and controls; and
            (3) establish criteria for determining compliance with 
        emergency requirements.

SEC. 112. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

    (a) Elimination of Emergency Designation.--Sections 251(b)(2)(A), 
252(e), and 252(d)(4)(B) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 are repealed.
    (b) Elimination of Emergency Adjustments.--Section 314(b) of the 
Congressional Budget Act of 1974 is amended by striking paragraph (1) 
and by redesignating paragraphs (2) through (5) as paragraphs (1) 
through (4), respectively.
    (c) Conforming Amendment.--Clause 2 of rule XXI of the Rules of the 
House of Representatives is amended by repealing paragraph (e) and by 
redesignating paragraph (f) as paragraph (e).

SEC. 113. OMB EMERGENCY CRITERIA.

    (a) Definition of Emergency.--Section 3 of the Congressional Budget 
and Impoundment Control Act of 1974 (as amended by section 105(e)) is 
further amended by adding at the end the following new paragraph:
            ``(12)(A) The term `emergency' means a situation that--
                    ``(i) 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
                    ``(ii) is unanticipated.
            ``(B) As used in subparagraph (A), the term `unanticipated' 
        means that the situation is--
                    ``(i) sudden, which means quickly coming into being 
                or not building up over time;
                    ``(ii) urgent, which means a pressing and 
                compelling need requiring immediate action;
                    ``(iii) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                    ``(iv) temporary, which means not of a permanent 
                duration.''.
    (b) Conforming Amendment.--The term ``emergency'' has the meaning 
given to such term in section 3 of the Congressional Budget and 
Impoundment Control Act of 1974.''.

SEC. 114. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY 
              DEFINITION.

    Not later than 5 months after the date of enactment of this Act, 
the chairmen of the Committees on the Budget (in consultation with the 
President) shall, after consulting with the chairmen of the Committees 
on Appropriations and applicable authorizing committees of their 
respective Houses and the Directors of the Congressional Budget Office 
and the Office of Management and Budget, jointly publish in the 
Congressional Record guidelines for application of the definition of 
emergency set forth in section 3(12) of the Congressional Budget and 
Impoundment Control Act of 1974.

SEC. 115. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.

    Section 1105(f) of title 31, United States Code is amended by 
adding at the end the following new sentences: ``Such budget submission 
shall also comply with the requirements of subsections (b) and (c) of 
section 316 of the Congressional Budget Act of 1974 and, in the case of 
any budget authority requested for an emergency, such submission shall 
include a detailed justification of why such emergency is an emergency 
within the meaning of section 3(12) of the Congressional Budget Act of 
1974.''.

SEC. 116. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN JOINT BUDGET 
              RESOLUTIONS.

    (a) Emergencies.--Title III of the Congressional Budget Act of 1974 
is amended by adding at the end the following new section:

                             ``emergencies

    ``Sec. 316.  (a) Adjustments.--
            ``(1) In general.--After the reporting of a bill or joint 
        resolution or the submission of a conference report thereon 
        that provides budget authority for any emergency as identified 
        pursuant to subsection (d) that is not covered by subsection 
        (c)--
                    ``(A) the chairman of the Committee on the Budget 
                of the House of Representatives or the Senate shall 
                determine and certify, pursuant to the guidelines 
                referred to in section 114 of the Family Budget 
                Protection Act of 2007, the portion (if any) of the 
                amount so specified that is for an emergency within the 
                meaning of section 3(12); and
                    ``(B) such chairman shall make the adjustment set 
                forth in paragraph (2) for the amount of new budget 
                authority (or outlays) in that measure and the outlays 
                flowing from that budget authority.
            ``(2) Matters to be adjusted.--The adjustments referred to 
        in paragraph (1) are to be made to the allocations made 
        pursuant to the appropriate joint resolution on the budget 
        pursuant to section 302(a) and shall be in an amount not to 
        exceed the amount reserved for emergencies pursuant to the 
        requirements of subsection (b).
    ``(b) Reserve Fund for Nonmilitary Emergencies.--The amount set 
forth in the reserve fund for emergencies for budget authority and 
outlays for a fiscal year pursuant to section 301(a)(4) shall equal--
            ``(1) the average of the enacted levels of budget authority 
        for emergencies (other than those covered by subsection (c)) in 
        the 5 fiscal years preceding the current year; and
            ``(2) the average of the levels of outlays for emergencies 
        in the 5 fiscal years preceding the current year flowing from 
        the budget authority referred to in paragraph (1), but only in 
        the fiscal year for which such budget authority first becomes 
        available for obligation.
    ``(c) Treatment of Emergencies to Fund Certain Military 
Operations.--Whenever the Committee on Appropriations reports any bill 
or joint resolution that provides budget authority for any emergency 
that is a threat to national security and the funding of which carries 
out a military operation authorized by a declaration of war or a joint 
resolution authorizing the use of military force (or economic 
assistance funding in furtherance of such operation) and the report 
accompanying that bill or joint resolution, pursuant to subsection (d), 
identifies any provision that increases outlays or provides budget 
authority (and the outlays flowing therefrom) for such emergency, the 
enactment of which would cause the total amount of budget authority or 
outlays provided for emergencies for the budget year in the joint 
resolution on the budget (pursuant to section 301(a)(4)) to be 
exceeded:
            ``(1) Such bill or joint resolution shall be referred to 
        the Committee on the Budget of the House or the Senate, as the 
        case may be, with instructions to report it without amendment, 
        other than that specified in paragraph (2), within 5 
        legislative days of the day in which it is reported from the 
        originating committee. If the Committee on the Budget of either 
        House fails to report a bill or joint resolution referred to it 
        under this subparagraph within such 5-day period, the committee 
        shall be automatically discharged from further consideration of 
        such bill or joint resolution and such bill or joint resolution 
        shall be placed on the appropriate calendar.
            ``(2) An amendment to such a bill or joint resolution 
        referred to in this subsection shall only consist of an 
        exemption from section 251 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 of all or any part of the 
        provisions that provide budget authority (and the outlays 
        flowing therefrom) for such emergency if the committee 
        determines, pursuant to the guidelines referred to in section 
        114 of the Family Budget Protection Act of 2007, that such 
        budget authority is for an emergency within the meaning of 
        section 3(12).
            ``(3) If such a bill or joint resolution is reported with 
        an amendment specified in paragraph (2) by the Committee on the 
        Budget of the House of Representatives or the Senate, then the 
        budget authority and resulting outlays that are the subject of 
        such amendment shall not be included in any determinations 
        under section 302(f) or 311(a) for any bill, joint resolution, 
        amendment, motion, or conference report.
    ``(d) Committee Notification of Emergency Legislation.--Whenever 
the Committee on Appropriations or any other committee of either House 
(including a committee of conference) reports any bill or joint 
resolution that provides budget authority for any emergency, the report 
accompanying that bill or joint resolution (or the joint explanatory 
statement of managers in the case of a conference report on any such 
bill or joint resolution) shall identify all provisions that provide 
budget authority and the outlays flowing therefrom for such emergency 
and include a statement of the reasons why such budget authority meets 
the definition of an emergency pursuant to the guidelines referred to 
in section 114 of the Family Budget Protection Act of 2007.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 315 the 
following new item:

``Sec. 316. Emergencies.''.

SEC. 117. APPLICATION OF SECTION 306 TO EMERGENCIES IN EXCESS OF 
              AMOUNTS IN RESERVE FUND.

    Section 306 of the Congressional Budget Act of 1974 is amended by 
inserting at the end the following new sentence: ``No amendment 
reported by the Committee on the Budget (or from the consideration of 
which such committee has been discharged) pursuant to section 316(c) 
may be amended.''.

SEC. 118. UP-TO-DATE TABULATIONS.

    Section 308(b)(2) of the Congressional Budget Act of 1974 is 
amended by striking ``and'' at the end of subparagraph (B), by striking 
the period at the end of subparagraph (C) and inserting ``; and'', and 
by adding at the end the following new subparagraph:
                    ``(D) shall include an up-to-date tabulation of 
                amounts remaining in the reserve fund for 
                emergencies.''.

SEC. 119. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUND.

    (a) Point of Order.--Section 305 of the Congressional Budget Act of 
1974 (as amended by section 103(f)) is further amended by adding at the 
end the following new subsection:
    ``(f) Point of Order Regarding Emergency Reserve Fund.--It shall 
not be in order in the House of Representatives or in the Senate to 
consider an amendment to a joint resolution on the budget which changes 
the amount of budget authority and outlays set forth in section 
301(a)(4) for emergency reserve fund.''.
    (b) Technical Amendment.--(1) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``305(e), 
305(f),'' after ``305(c)(4),''.
    (2) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``305(e), 305(f),'' after ``305(c)(4),''.

                   Subtitle C--Biennial Budget Option

SEC. 121. EFFECTIVE DATE.

    If--
            (1) as part of the President's budget submission under 
        section 1105(a) of title 31, United States Code, during the 
        first session of any Congress, the President includes a request 
        that the joint resolution on the budget that will be considered 
        during the first session of the next Congress be for a biennium 
        consisting of two consecutive fiscal years; and
            (2) the joint resolution on the budget for the fiscal year 
        to which the President's submission relates contains a 
        provision stating that the joint resolution on the budget that 
        will be considered during the first session of the next 
        Congress shall be for a biennium consisting of two consecutive 
        fiscal years;



then the provisions of this subtitle shall take effect on January 1 of 
the calendar year in which that next Congress commences and apply to 
that Congress and each Congress thereafter.

SEC. 122. REVISION OF TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 (2 U.S.C. 631) 
is amended to read as follows:

                              ``timetable

    ``Sec. 300.  (a) In General.--Except as provided by subsection (b), 
the timetable with respect to the congressional budget process for any 
Congress (beginning with the One Hundred Twelfth Congress or a 
subsequent Congress, as applicable) is as follows:


 
                                          First session action to be
          ``On or before:                         completed:
 
First Monday in February...........  President submits budget
                                      recommendations
February 15........................  Congressional Budget Office submits
                                      report to Budget Committees
Not later than 6 weeks after budget  Committees submit views and
 submission.                          estimates to Budget Committees
April 1............................  Budget Committees report joint
                                      resolution on the biennial budget
May 15.............................  Congress completes action on joint
                                      resolution on the biennial budget
May 15.............................  Biennial appropriation bills may be
                                      considered in the House
June 10............................  House Appropriations Committee
                                      reports last biennial
                                      appropriation bill
June 30............................  House completes action on biennial
                                      appropriation bills
October 1..........................  Biennium begins
 



 
                                         Second session sction to be
          ``On or before:                         completed:
 
February 15........................  President submits budget review
Not later than 6 weeks after         Congressional Budget Office submits
 President submits budget review.     report to Budget Committees
The last day of the session........  Congress completes action on bills
                                      and resolutions authorizing new
                                      budget authority for the
                                      succeeding biennium
 

    ``(b) Special Rule.--In the case of any first session of Congress 
that begins in any year during which the term of a President (except a 
President who succeeds himself) begins, the following dates shall 
supersede those set forth in subsection (a):


 
                                          First session action to be
          ``On or before:                         completed:
 
First Monday in April..............  President submits budget
                                      recommendations
April 20...........................  Committees submit views and
                                      estimates to Budget Committees
May 15.............................  Budget Committees report joint
                                      resolution on the biennial budget
June 1.............................  Congress completes action on joint
                                      resolution on the biennial budget
June 1.............................  Biennial appropriation bills may be
                                      considered in the House
July 1.............................  House Appropriations Committee
                                      reports last biennial
                                      appropriation bill
July 20............................  House completes action on biennial
                                      appropriation bills.
October 1..........................  Biennium begins''.
 

SEC. 123. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT 
              CONTROL ACT OF 1974.

    (a) Declaration of Purpose.--Section 2(2) of the Congressional 
Budget and Impoundment Control Act of 1974 (2 U.S.C. 621(2)) is amended 
by striking ``each year'' and inserting ``biennially''.
    (b) Definitions.--
            (1) Budget resolution.--Section 3(4) of such Act (2 U.S.C. 
        622(4)) is amended by striking ``fiscal year'' each place it 
        appears and inserting ``biennium''.
            (2) Biennium.--Section 3 of such Act (2 U.S.C. 622) (as 
        amended by section 111(a)) is further amended by adding at the 
        end the following new paragraph:
            ``(13) The term `biennium' means the period of 2 
        consecutive fiscal years beginning on October 1 of any odd-
        numbered year.''.
    (c) Biennial Joint Resolution on the Budget.--
            (1) Contents of resolution.--Section 301(a) of such Act (2 
        U.S.C. 632(a)) is amended--
                    (A) in the matter preceding paragraph (1) by--
                            (i) striking ``April 15 of each year'' and 
                        inserting ``May 15 of each odd-numbered year'';
                            (ii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the first place it 
                        appears and inserting ``the biennium beginning 
                        on October 1 of such year'';
                            (iii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the second place it 
                        appears and inserting ``each fiscal year in 
                        such period''; and
                            (iv) striking ``each of the four ensuing 
                        fiscal years'' and inserting ``each fiscal year 
                        in the next 2 bienniums'';
                    (B) in paragraph (6), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''; and
                    (C) in paragraph (7), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''.
            (2) Additional matters.--Section 301(b) of such Act (2 
        U.S.C. 632(b)) is amended--
                    (A) in paragraph (3), by striking ``for such fiscal 
                year'' and inserting ``for either fiscal year in such 
                biennium''; and
                    (B) in paragraph (7), by striking ``for the first 
                fiscal year'' and inserting ``for each fiscal year in 
                the biennium''.
            (3) Views of other committees.--Section 301(d) of such Act 
        (2 U.S.C. 632(d)) is amended by inserting ``(or, if applicable, 
        as provided by section 300(b))'' after ``United States Code''.
            (4) Hearings.--Section 301(e)(1) of such Act (2 U.S.C. 
        632(e)) is amended by--
                    (A) striking ``fiscal year'' and inserting 
                ``biennium''; and
                    (B) inserting after the second sentence the 
                following: ``On or before April 1 of each odd-numbered 
                year (or, if applicable, as provided by section 
                300(b)), the Committee on the Budget of each House 
                shall report to its House the joint resolution on the 
                budget referred to in subsection (a) for the biennium 
                beginning on October 1 of that year.''.
            (5) Goals for reducing unemployment.--Section 301(f) of 
        such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal 
        year'' each place it appears and inserting ``biennium''.
            (6) Economic assumptions.--Section 301(g)(1) of such Act (2 
        U.S.C. 632(g)(1)) is amended by striking ``for a fiscal year'' 
        and inserting ``for a biennium''.
            (7) Section heading.--The section heading of section 301 of 
        such Act is amended by striking ``annual'' and inserting 
        ``biennial''.
            (8) Table of contents.--The item relating to section 301 in 
        the table of contents set forth in section 1(b) of such Act is 
        amended by striking ``Annual'' and inserting ``Biennial''.
    (d) Committee Allocations.--Section 302 of such Act (2 U.S.C. 633) 
is amended--
            (1) in subsection (a)(1) by--
                    (A) striking ``for the first fiscal year of the 
                resolution,'' and inserting ``for each fiscal year in 
                the biennium,'';
                    (B) striking ``for that period of fiscal years'' 
                and inserting ``for all fiscal years covered by the 
                resolution''; and
                    (C) striking ``for the fiscal year of that 
                resolution'' and inserting ``for each fiscal year in 
                the biennium'';
            (2) in subsection (f)(1), by striking ``for a fiscal year'' 
        and inserting ``for a biennium'';
            (3) in subsection (f)(1), by striking ``first fiscal year'' 
        and inserting ``either fiscal year of the biennium'';
            (4) in subsection (f)(2)(A), by--
                    (A) striking ``first fiscal year'' and inserting 
                ``each fiscal year of the biennium''; and
                    (B) striking ``the total of fiscal years'' and 
                inserting ``the total of all fiscal years covered by 
                the resolution''; and
            (5) in subsection (g)(1)(A), by striking ``April'' and 
        inserting ``May''.
    (e) Section 303 Point of Order.--Section 303 of such Act (2 U.S.C. 
634(a)) is amended by striking ``for a fiscal year'' and inserting 
``for a biennium'' and by striking ``the first fiscal year'' and 
inserting ``each fiscal year of the biennium''.
    (f) Permissible Revisions of Joint Resolutions on the Budget.--
Section 304 of such Act (2 U.S.C. 635) is amended--
            (1) by striking ``fiscal year'' the first two places it 
        appears and inserting ``biennium'';
            (2) by striking ``for such fiscal year''; and
            (3) by inserting before the period ``for such biennium''.
    (g) Procedures for Consideration of Budget Resolutions.--Section 
305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended by striking 
``fiscal year'' and inserting ``biennium''.
    (h) Completion of House Committee Action on Appropriation Bills.--
Section 307 of such Act (2 U.S.C. 638) is amended--
            (1) by striking ``each year'' and inserting ``each odd-
        numbered year (or, if applicable, as provided by section 
        300(b), July 1)'';
            (2) by striking ``annual'' and inserting ``biennial'';
            (3) by striking ``fiscal year'' and inserting ``biennium''; 
        and
            (4) by striking ``that year'' and inserting ``each odd-
        numbered year''.
    (i) Quarterly Budget Reports.--Section 308 of such Act (2 U.S.C. 
639) is amended by adding at the end the following new subsection:
    ``(d) Quarterly Budget Reports.--The Director of the Congressional 
Budget Office shall, as soon as practicable after the completion of 
each quarter of the fiscal year, prepare an analysis comparing 
revenues, spending, and the deficit or surplus for the current fiscal 
year to assumptions included in the congressional budget resolution. In 
preparing this report, the Director of the Congressional Budget Office 
shall combine actual budget figures to date with projected revenue and 
spending for the balance of the fiscal year. The Director of the 
Congressional Budget Office shall include any other information in this 
report that it deems useful for a full understanding of the current 
fiscal position of the Government. The reports mandated by this 
subsection shall be transmitted by the Director to the Senate and House 
Committees on the Budget, and the Congressional Budget Office shall 
make such reports available to any interested party upon request.''.
    (j) Completion of House Action on Regular Appropriation Bills.--
Section 309 of such Act (2 U.S.C. 640) is amended--
            (1) by striking ``It'' and inserting ``Except whenever 
        section 300(b) is applicable, it'';
            (2) by inserting ``of any odd-numbered calendar year'' 
        after ``July'';
            (3) by striking ``annual'' and inserting ``biennial''; and
            (4) by striking ``fiscal year'' and inserting ``biennium''.
    (k) Reconciliation Process.--Section 310 of such Act (2 U.S.C. 641) 
is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``any fiscal year'' and inserting ``any 
        biennium'';
            (2) in subsection (a)(1), by striking ``such fiscal year'' 
        each place it appears and inserting ``any fiscal year covered 
        by such resolution''; and
            (3) by striking subsection (f) and redesignating subsection 
        (g) as subsection (f).
    (l) Section 311 Point of Order.--
            (1) In the house.--Section 311(a)(1) of such Act (2 U.S.C. 
        642(a)) is amended--
                    (A) by striking ``for a fiscal year'' and inserting 
                ``for a biennium'';
                    (B) by striking ``the first fiscal year'' each 
                place it appears and inserting ``either fiscal year of 
                the biennium''; and
                    (C) by striking ``that first fiscal year'' and 
                inserting ``each fiscal year in the biennium''.
            (2) In the senate.--Section 311(a)(2) of such Act is 
        amended--
                    (A) in subparagraph (A), by striking ``for the 
                first fiscal year'' and inserting ``for either fiscal 
                year of the biennium''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``that first fiscal year'' 
                        the first place it appears and inserting ``each 
                        fiscal year in the biennium''; and
                            (ii) by striking ``that first fiscal year 
                        and the ensuing fiscal years'' and inserting 
                        ``all fiscal years''.
            (3) Social security levels.--Section 311(a)(3) of such Act 
        is amended by--
                    (A) striking ``for the first fiscal year'' and 
                inserting ``each fiscal year in the biennium''; and
                    (B) striking ``that fiscal year and the ensuing 
                fiscal years'' and inserting ``all fiscal years''.
    (m) Maximum Deficit Amount Point of Order.--Section 312(c) of the 
Congressional Budget Act of 1974 (2 U.S.C. 643) is amended--
            (1) by striking ``for a fiscal year'' and inserting ``for a 
        biennium'';
            (2) in paragraph (1), by striking ``first fiscal year'' and 
        inserting ``either fiscal year in the biennium'';
            (3) in paragraph (2), by striking ``that fiscal year'' and 
        inserting ``either fiscal year in the biennium''; and
            (4) in the matter following paragraph (2), by striking 
        ``that fiscal year'' and inserting ``the applicable fiscal 
        year''.

SEC. 124. AMENDMENTS TO RULES OF THE HOUSE OF REPRESENTATIVES.

    (a) Clause 4(a)(1)(A) of rule X of the Rules of the House of 
Representatives is amended by inserting ``odd-numbered'' after 
``each''.
    (b) Clause 4(a)(4) of rule X of the Rules of the House of 
Representatives is amended by striking ``fiscal year'' and inserting 
``biennium''.
    (c) Clause 4(b)(2) of rule X of the Rules of the House of 
Representatives is amended by striking ``each fiscal year'' and 
inserting ``the biennium''.
    (d) Clause 4(b) of rule X of the Rules of the House of 
Representatives is amended by striking ``and'' at the end of 
subparagraph (5), by striking the period and inserting ``; and'' at the 
end of subparagraph (6), and by adding at the end the following new 
subparagraph:
            ``(7) use the second session of each Congress to study 
        issues with long-term budgetary and economic implications, 
        which would include--
                    ``(A) hold hearings to receive testimony from 
                committees of jurisdiction to identify problem areas 
                and to report on the results of oversight; and
                    ``(B) by January 1 of each odd-number year, issuing 
                a report to the Speaker which identifies the key issues 
                facing the Congress in the next biennium.''.
    (e) Clause 4(e) of rule X of the Rules of the House of 
Representatives is amended by striking ``annually'' each place it 
appears and inserting ``biennially'' and by striking ``annual'' and 
inserting ``biennial''.
    (f) Clause 4(f) of rule X of the Rules of the House of 
Representatives is amended--
            (1) by inserting ``during each odd-numbered year'' after 
        ``submits his budget'';
            (2) by striking ``fiscal year'' the first place it appears 
        and inserting ``biennium''; and
            (3) by striking ``that fiscal year'' and inserting ``each 
        fiscal year in such ensuing biennium''.
    (g) Clause 11(i) of rule X of the Rules of the House of 
Representatives is amended by striking ``during the same or preceding 
fiscal year''.
    (h) Clause 3(d)(2)(A) of rule XIII of the Rules of the House of 
Representatives is amended by striking ``five'' both places it appears 
and inserting ``six''.
    (i) Clause 5(a)(1) of rule XIII of the Rules of the House of 
Representatives is amended by striking ``fiscal year after September 15 
in the preceding fiscal year'' and inserting ``biennium after September 
15 of the calendar year in which such biennium begins''.

SEC. 125. AMENDMENTS TO TITLE 31, UNITED STATES CODE.

    (a) Definition.--Section 1101 of title 31, United States Code, is 
amended by adding at the end the following new paragraph:
            ``(3) `biennium' has the meaning given to such term in 
        paragraph (13) of section 3 of the Congressional Budget and 
        Impoundment Control Act of 1974 (2 U.S.C. 622(13)).''.
    (b) Budget Contents and Submission to the Congress.--
            (1) Schedule.--The matter preceding paragraph (1) in 
        section 1105(a) of title 31, United States Code, is amended to 
        read as follows:
    ``(a) On or before the first Monday in February of each odd-
numbered year (or, if applicable, as provided by section 300(b) of the 
Congressional Budget Act of 1974), beginning with the One Hundred Tenth 
Congress or a subsequent Congress (as applicable), the President shall 
submit to the Congress the budget for the biennium beginning on October 
1 of such calendar year. The budget transmitted under this subsection 
shall include a budget message and summary and supporting information. 
The President shall include in each budget the following:''.
            (2) Expenditures.--Section 1105(a)(5) of title 31, United 
        States Code, is amended by striking ``the fiscal year for which 
        the budget is submitted and the 4 fiscal years after that 
        year'' and inserting ``each fiscal year in the biennium for 
        which the budget is submitted and in the succeeding 4 years''.
            (3) Receipts.--Section 1105(a)(6) of title 31, United 
        States Code, is amended by striking ``the fiscal year for which 
        the budget is submitted and the 4 fiscal years after that 
        year'' and inserting ``each fiscal year in the biennium for 
        which the budget is submitted and in the succeeding 4 years''.
            (4) Balance statements.--Section 1105(a)(9)(C) of title 31, 
        United States Code, is amended by striking ``the fiscal year'' 
        and inserting ``each fiscal year in the biennium''.
            (5) Government functions and activities.--Section 
        1105(a)(12) of title 31, United States Code, is amended in 
        subparagraph (A), by striking ``the fiscal year'' and inserting 
        ``each fiscal year in the biennium''.
            (6) Allowances.--Section 1105(a)(13) of title 31, United 
        States Code, is amended by striking ``the fiscal year'' and 
        inserting ``each fiscal year in the biennium''.
            (7) Allowances for unanticipated and uncontrollable 
        expenditures.--Section 1105(a)(14) of title 31, United States 
        Code, is amended by striking ``that year'' and inserting ``each 
        fiscal year in the biennium for which the budget is 
        submitted''.
            (8) Tax expenditures.--Section 1105(a)(16) of title 31, 
        United States Code, is amended by striking ``the fiscal year'' 
        and inserting ``each fiscal year in the biennium''.
            (9) Estimates for future years.--Section 1105(a)(17) of 
        title 31, United States Code, is amended--
                    (A) by striking ``the fiscal year following the 
                fiscal year'' and inserting ``each fiscal year in the 
                biennium following the biennium'';
                    (B) by striking ``that following fiscal year'' and 
                inserting ``each such fiscal year''; and
                    (C) by striking ``fiscal year before the fiscal 
                year'' and inserting ``biennium before the biennium''.
            (10) Prior year outlays.--Section 1105(a)(18) of title 31, 
        United States Code, is amended--
                    (A) by striking ``the prior fiscal year,'' and 
                inserting ``each of the 2 most recently completed 
                fiscal years,'';
                    (B) by striking ``for that year'' and inserting 
                ``with respect to those fiscal years''; and
                    (C) by striking ``in that year'' and inserting ``in 
                those fiscal years''.
            (11) Prior year receipts.--Section 1105(a)(19) of title 31, 
        United States Code, is amended--
                    (A) by striking ``the prior fiscal year'' and 
                inserting ``each of the 2 most recently completed 
                fiscal years'';
                    (B) by striking ``for that year'' and inserting 
                ``with respect to those fiscal years''; and
                    (C) by striking ``in that year'' each place it 
                appears and inserting ``in those fiscal years''.
    (c) Estimated Expenditures of Legislative and Judicial Branches.--
Section 1105(b) of title 31, United States Code, is amended by striking 
``each year'' and inserting ``each even-numbered year''.
    (d) Recommendations To Meet Estimated Deficiencies.--Section 
1105(c) of title 31, United States Code, is amended--
            (1) by striking ``the fiscal year for'' the first place it 
        appears and inserting ``each fiscal year in the biennium for'';
            (2) by striking ``the fiscal year for'' the second place it 
        appears and inserting ``each fiscal year of the biennium, as 
        the case may be,''; and
            (3) by striking ``that year'' and inserting ``for each year 
        of the biennium''.
    (e) Capital Investment Analysis.--Section 1105(e)(1) of title 31, 
United States Code, is amended by striking ``ensuing fiscal year'' and 
inserting ``biennium to which such budget relates''.
    (f) Supplemental Budget Estimates and Changes.--
            (1) In general.--Section 1106(a) of title 31, United States 
        Code, is amended--
                    (A) in the matter preceding paragraph (1), by--
                            (i) inserting ``and before February 15 of 
                        each even-numbered year'' after ``Before July 
                        16 of each year''; and
                            (ii) striking ``fiscal year'' and inserting 
                        ``biennium'';
                    (B) in paragraph (1), by striking ``that fiscal 
                year'' and inserting ``each fiscal year in such 
                biennium'';
                    (C) in paragraph (2), by striking ``4 fiscal years 
                following the fiscal year'' and inserting ``4 fiscal 
                years following the biennium''; and
                    (D) in paragraph (3), by striking ``fiscal year'' 
                and inserting ``biennium''.
            (2) Changes.--Section 1106(b) of title 31, United States 
        Code, is amended by--
                    (A) striking ``the fiscal year'' and inserting 
                ``each fiscal year in the biennium''; and
                    (B) inserting ``and before February 15 of each 
                even-numbered year'' after ``Before July 16 of each 
                year''.
    (g) Current Programs and Activities Estimates.--
            (1) The president.--Section 1109(a) of title 31, United 
        States Code, is amended--
                    (A) by striking ``On or before the first Monday 
                after January 3 of each year (on or before February 5 
                in 1986)'' and inserting ``At the same time the budget 
                required by section 1105 is submitted for a biennium''; 
                and
                    (B) by striking ``the following fiscal year'' and 
                inserting ``each fiscal year of such period''.
            (2) Joint economic committee.--Section 1109(b) of title 31, 
        United States Code, is amended by striking ``March 1 of each 
        year'' and inserting ``within 6 weeks of the President's budget 
        submission for each odd-numbered year (or, if applicable, as 
        provided by section 300(b) of the Congressional Budget Act of 
        1974)''.
    (h) Year-Ahead Requests for Authorizing Legislation.--Section 1110 
of title 31, United States Code, is amended by--
            (1) striking ``May 16'' and inserting ``March 31''; and
            (2) striking ``year before the year in which the fiscal 
        year begins'' and inserting ``calendar year preceding the 
        calendar year in which the biennium begins''.

SEC. 126. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF APPROPRIATION 
              ACTS.

    Section 105 of title 1, United States Code, is amended to read as 
follows:
``Sec. 105. Title and style of appropriations Acts
    ``(a) The style and title of all Acts making appropriations for the 
support of the Government shall be as follows: `An Act making 
appropriations (here insert the object) for each fiscal year in the 
biennium of fiscal years (here insert the fiscal years of the 
biennium).'.
    ``(b) All Acts making regular appropriations for the support of the 
Government shall be enacted for a biennium and shall specify the amount 
of appropriations provided for each fiscal year in such period.
    ``(c) For purposes of this section, the term `biennium' has the 
same meaning as in section 3(13) of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 622(13)).''.

SEC. 127. MULTIYEAR AUTHORIZATIONS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(as amended by section 116(a)) is further amended by adding at the end 
the following new section:

              ``multiyear authorizations of appropriations

    ``Sec. 318.  (a) It shall not be in order in the House of 
Representatives or the Senate to consider any measure that contains a 
specific authorization of appropriations for any purpose unless the 
measure includes such a specific authorization of appropriations for 
that purpose for not less than each fiscal year in one or more 
bienniums.
    ``(b)(1) For purposes of this section, a specific authorization of 
appropriations is an authorization for the enactment of an amount of 
appropriations or amounts not to exceed an amount of appropriations 
(whether stated as a sum certain, as a limit, or as such sums as may be 
necessary) for any purpose for a fiscal year.
    ``(2) Subsection (a) does not apply with respect to an 
authorization of appropriations for a single fiscal year for any 
program, project, or activity if the measure containing that 
authorization includes a provision expressly stating the following: 
`Congress finds that no authorization of appropriation will be required 
for [Insert name of applicable program, project, or activity] for any 
subsequent fiscal year.'.
    ``(c) For purposes of this section, the term `measure' means a 
bill, joint resolution, amendment, motion, or conference report.''.
    (b) Amendment to Table of Contents.--The table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by adding after the item relating to 
section 317 the following new item:

``Sec. 318. Multiyear authorizations of appropriations.''.

SEC. 128. GOVERNMENT STRATEGIC AND PERFORMANCE PLANS ON A BIENNIAL 
              BASIS.

    (a) Strategic Plans.--Section 306 of title 5, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2009'';
            (2) in subsection (b)--
                    (A) by striking ``at least every three years'' and 
                all that follows thereafter and inserting ``at least 
                every 4 years, except that strategic plans submitted by 
                September 30, 2009, shall be updated and revised by 
                September 30, 2012''; and
                    (B) by striking ``five years forward'' and 
                inserting ``six years forward''; and
            (3) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and adding ``including 
        a strategic plan submitted by September 30, 2009, meeting the 
        requirements of subsection (a)''.
    (b) Budget Contents and Submission to Congress.--Paragraph (28) of 
section 1105(a) of title 31, United States Code, is amended by striking 
``beginning with fiscal year 1999, a'' and inserting ``beginning with 
fiscal year 2012, a biennial''.
    (c) Performance Plans.--Section 1115 of title 31, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter before paragraph (1) by striking 
                ``an annual'' and inserting ``a biennial'';
                    (B) in paragraph (1) by inserting after ``program 
                activity'' the following: ``for both years 1 and 2 of 
                the biennial plan'';
                    (C) in paragraph (5) by striking ``and'' after the 
                semicolon;
                    (D) in paragraph (6) by striking the period and 
                inserting a semicolon; and inserting ``and'' after the 
                inserted semicolon; and
                    (E) by adding after paragraph (6) the following:
            ``(7) cover each fiscal year of the biennium beginning with 
        the first fiscal year of the next biennial budget cycle.'';
            (2) in subsection (d) by striking ``annual'' and inserting 
        ``biennial''; and
            (3) in paragraph (6) of subsection (g) by striking 
        ``annual'' and inserting ``biennial''.
    (d) Managerial Accountability and Flexibility.--Section 9703 of 
title 31, United States Code, relating to managerial accountability, is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence by striking ``annual''; 
                and
                    (B) by striking ``section 1105(a)(29)'' and 
                inserting ``section 1105(a)(28)'';
            (2) in subsection (e)--
                    (A) in the first sentence by striking ``one or'' 
                before ``two years'';
                    (B) in the second sentence by striking ``a 
                subsequent year'' and inserting ``for a subsequent 2-
                year period''; and
                    (C) in the third sentence by striking ``three'' and 
                inserting ``four''.
    (e) Strategic Plans.--Section 2802 of title 39, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2009'';
            (2) in subsection (b), by striking ``at least every three 
        years'' and inserting ``at least every 4 years except that 
        strategic plans submitted by September 30, 2009, shall be 
        updated and revised by September 30, 2012'';
            (3) in subsection (b), by striking ``five years forward'' 
        and inserting ``six years forward''; and
            (4) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and inserting 
        ``including a strategic plan submitted by September 30, 2009, 
        meeting the requirements of subsection (a)''.
    (f) Performance Plans.--Section 2803(a) of title 39, United States 
Code, is amended--
            (1) in the matter before paragraph (1), by striking ``an 
        annual'' and inserting ``a biennial'';
            (2) in paragraph (1), by inserting after ``program 
        activity'' the following: ``for both years 1 and 2 of the 
        biennial plan'';
            (3) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (4) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (5) by adding after paragraph (6) the following:
            ``(7) cover each fiscal year of the biennium beginning with 
        the first fiscal year of the next biennial budget cycle.''.
    (g) Committee Views of Plans and Reports.--Section 301(d) of the 
Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the 
end ``Each committee of the Senate or the House of Representatives 
shall review the strategic plans, performance plans, and performance 
reports, required under section 306 of title 5, United States Code, and 
sections 1115 and 1116 of title 31, United States Code, of all agencies 
under the jurisdiction of the committee. Each committee may provide its 
views on such plans or reports to the Committee on the Budget of the 
applicable House.''.

SEC. 129. BIENNIAL APPROPRIATION BILLS.

    (a) In the House of Representatives.--Clause 2(a) of rule XXI of 
the Rules of the House of Representatives is amended by adding at the 
end the following new subparagraph:
    ``(3)(A) Except as provided by subdivision (B), an appropriation 
may not be reported in a general appropriation bill (other than a 
supplemental appropriation bill), and may not be in order as an 
amendment thereto, unless it provides new budget authority or 
establishes a level of obligations under contract authority for each 
fiscal year of a biennium.
    ``(B) Subdivision (A) does not apply with respect to an 
appropriation for a single fiscal year for any program, project, or 
activity if the bill or amendment thereto containing that appropriation 
includes a provision expressly stating the following: `Congress finds 
that no additional funding beyond one fiscal year will be required and 
the [Insert name of applicable program, project, or activity] will be 
completed or terminated after the amount provided has been expended.'.
    ``(C) For purposes of paragraph (b), the statement set forth in 
subdivision (B) with respect to an appropriation for a single fiscal 
year for any program, project, or activity may be included in a general 
appropriation bill or amendment thereto.''.
    (b) Conforming Amendment.--Clause 5(b)(1) of rule XXII of the House 
of Representatives is amended by striking ``or (c)'' and inserting ``or 
(3) or 2(c)''.

SEC. 130. ASSISTANCE BY FEDERAL AGENCIES TO STANDING COMMITTEES OF THE 
              SENATE AND THE HOUSE OF REPRESENTATIVES.

    (a) Information Regarding Agency Appropriations Requests.--To 
assist each standing committee of the House of Representatives and the 
Senate in carrying out its responsibilities, the head of each Federal 
agency which administers the laws or parts of laws under the 
jurisdiction of such committee shall provide to such committee such 
studies, information, analyses, reports, and assistance as may be 
requested by the chairman and ranking minority member of the committee.
    (b) Information Regarding Agency Program Administration.--To assist 
each standing committee of the House of Representatives and the Senate 
in carrying out its responsibilities, the head of any agency shall 
furnish to such committee documentation, containing information 
received, compiled, or maintained by the agency as part of the 
operation or administration of a program, or specifically compiled 
pursuant to a request in support of a review of a program, as may be 
requested by the chairman and ranking minority member of such 
committee.
    (c) Summaries by Comptroller General.--Within thirty days after the 
receipt of a request from a chairman and ranking minority member of a 
standing committee having jurisdiction over a program being reviewed 
and studied by such committee under this section, the Comptroller 
General of the United States shall furnish to such committee summaries 
of any audits or reviews of such program which the Comptroller General 
has completed during the preceding six years.
    (d) Congressional Assistance.--Consistent with their duties and 
functions under law, the Comptroller General of the United States, the 
Director of the Congressional Budget Office, and the Director of the 
Congressional Research Service shall continue to furnish (consistent 
with established protocols) to each standing committee of the House of 
Representatives or the Senate such information, studies, analyses, and 
reports as the chairman and ranking minority member may request to 
assist the committee in conducting reviews and studies of programs 
under this section.

             Subtitle D--Prevention of Government Shutdown

SEC. 141. AMENDMENT TO TITLE 31.

    (a) In General.--Chapter 13 of title 31, United States Code, is 
amended by inserting after section 1310 the following new section:
``Sec. 1311. Continuing appropriations
    ``(a)(1) If any regular appropriation bill for a fiscal year (or, 
if applicable, for each fiscal year in a biennium) does not become law 
before the beginning of such fiscal year or a joint resolution making 
continuing appropriations is not in effect, there are appropriated, out 
of any money in the Treasury not otherwise appropriated, and out of 
applicable corporate or other revenues, receipts, and funds, such sums 
as may be necessary to continue any project or activity for which funds 
were provided in the preceding fiscal year--
            ``(A) in the corresponding regular appropriation Act for 
        such preceding fiscal year; or
            ``(B) if the corresponding regular appropriation bill for 
        such preceding fiscal year did not become law, then in a joint 
        resolution making continuing appropriations for such preceding 
        fiscal year.
    ``(2) Appropriations and funds made available, and authority 
granted, for a project or activity for any fiscal year pursuant to this 
section shall be at a rate of operations not in excess of the lower 
of--
            ``(A) the rate of operations provided for in the regular 
        appropriation Act providing for such project or activity for 
        the preceding fiscal year;
            ``(B) in the absence of such an Act, the rate of operations 
        provided for such project or activity pursuant to a joint 
        resolution making continuing appropriations for such preceding 
        fiscal year;
            ``(C) the rate of operations provided for in the regular 
        appropriation bill as passed by the House of Representatives or 
        the Senate for the fiscal year in question, except that the 
        lower of these two versions shall be ignored for any project or 
        activity for which there is a budget request if no funding is 
        provided for that project or activity in either version; or
            ``(D) the annualized rate of operations provided for in the 
        most recently enacted joint resolution making continuing 
        appropriations for part of that fiscal year or any funding 
        levels established under the provisions of this Act.
    ``(3) Appropriations and funds made available, and authority 
granted, for any fiscal year pursuant to this section for a project or 
activity shall be available for the period beginning with the first day 
of a lapse in appropriations and ending with the earlier of--
            ``(A) the date on which the applicable regular 
        appropriation bill for such fiscal year becomes law (whether or 
        not such law provides for such project or activity) or a 
        continuing resolution making appropriations becomes law, as the 
        case may be; or
            ``(B) the last day of such fiscal year.
    ``(b) An appropriation or funds made available, or authority 
granted, for a project or activity for any fiscal year pursuant to this 
section shall be subject to the terms and conditions imposed with 
respect to the appropriation made or funds made available for the 
preceding fiscal year, or authority granted for such project or 
activity under current law.
    ``(c) Appropriations and funds made available, and authority 
granted, for any project or activity for any fiscal year pursuant to 
this section shall cover all obligations or expenditures incurred for 
such project or activity during the portion of such fiscal year for 
which this section applies to such project or activity.
    ``(d) Expenditures made for a project or activity for any fiscal 
year pursuant to this section shall be charged to the applicable 
appropriation, fund, or authorization whenever a regular appropriation 
bill or a joint resolution making continuing appropriations until the 
end of a fiscal year providing for such project or activity for such 
period becomes law.
    ``(e) This section shall not apply to a project or activity during 
a fiscal year if any other provision of law (other than an 
authorization of appropriations)--
            ``(1) makes an appropriation, makes funds available, or 
        grants authority for such project or activity to continue for 
        such period; or
            ``(2) specifically provides that no appropriation shall be 
        made, no funds shall be made available, or no authority shall 
        be granted for such project or activity to continue for such 
        period.
    ``(f) For purposes of this section, the term `regular appropriation 
bill' means any annual appropriation bill making appropriations, 
otherwise making funds available, or granting authority, for any of the 
following categories of projects and activities:
            ``(1) Agriculture, rural development, Food and Drug 
        Administration, and related agencies programs.
            ``(2) The Department of Defense.
            ``(3) Energy and water development, and related agencies.
            ``(4) State, foreign operations, and related programs.
            ``(5) The Department of Homeland Security.
            ``(6) The Department of the Interior, Environmental 
        Protection Agency, and related agencies.
            ``(7) The Departments of Labor, Health and Human Services, 
        and Education, and related agencies.
            ``(8) Military construction, veterans affairs, and related 
        agencies.
            ``(9) Science, the Departments of State, Justice, and 
        Commerce, and related agencies.
            ``(10) The Departments of Transportation, Housing and Urban 
        Development, and related agencies.
            ``(11) The Legislative Branch.
            ``(12) Financial services and general government.''.
    (b) Clerical Amendment.--The analysis of chapter 13 of title 31, 
United States Code, is amended by inserting after the item relating to 
section 1310 the following new item:

``1311. Continuing appropriations.''.

                        Subtitle E--The Baseline

SEC. 151. ELIMINATION OF INFLATION ADJUSTMENT.

    Section 257(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) in paragraph (1) by striking ``for inflation as 
        specified in paragraph (5),''; and
            (2) by striking paragraph (5) and redesignating paragraph 
        (6) as paragraph (5).

SEC. 152. THE PRESIDENT'S BUDGET.

    (a) Paragraph (5) of section 1105(a) of title 31, United States 
Code, is amended to read as follows:
            ``(5) except as provided in subsection (b) of this section, 
        estimated expenditures and appropriations for the current year 
        and estimated expenditures and proposed appropriations the 
        President decides are necessary to support the Government in 
        the fiscal year for which the budget is submitted and the 4 
        fiscal years following that year, and, except for detailed 
        budget estimates, the percentage change from the current year 
        to the fiscal year for which the budget is submitted for 
        estimated expenditures and for appropriations.''.
    (b) Section 1105(a)(6) of title 31, United States Code, is amended 
to read as follows:
            ``(6) estimated receipts of the Government in the current 
        year and the fiscal year for which the budget is submitted and 
        the 4 fiscal years after that year under--
                    ``(A) laws in effect when the budget is submitted; 
                and
                    ``(B) proposals in the budget to increase revenues,
        and the percentage change (in the case of each category 
        referred to in subparagraphs (A) and (B)) between the current 
        year and the fiscal year for which the budget is submitted and 
        between the current year and each of the 9 fiscal years after 
        the fiscal year for which the budget is submitted.''.
    (c) Section 1105(a)(12) of title 31, United States Code, is amended 
to read as follows:
            ``(12) for each proposal in the budget for legislation that 
        would establish or expand a Government activity or function, a 
        table showing--
                    ``(A) the amount proposed in the budget for 
                appropriation and for expenditure because of the 
                proposal in the fiscal year for which the budget is 
                submitted;
                    ``(B) the estimated appropriation required because 
                of the proposal for each of the 4 fiscal years after 
                that year that the proposal will be in effect; and
                    ``(C) the estimated amount for the same activity or 
                function, if any, in the current fiscal year,
        and, except for detailed budget estimates, the percentage 
        change (in the case of each category referred to in 
        subparagraphs (A), (B), and (C)) between the current year and 
        the fiscal year for which the budget is submitted.''.
    (d) Section 1105(a)(18) of title 31, United States Code, is amended 
by inserting ``new budget authority and'' before ``budget outlays''.
    (e) Section 1105(a) of title 31, United States Code, is amended by 
adding at the end the following new paragraphs:
            ``(35) a comparison of levels of estimated expenditures and 
        proposed appropriations for each function and subfunction in 
        the current fiscal year and the fiscal year for which the 
        budget is submitted, along with the proposed increase or 
        decrease of spending in percentage terms for each function and 
        subfunction.
            ``(36) a table on sources of growth in total direct 
        spending under current law and as proposed in this budget 
        submission for the budget year and the ensuing 9 fiscal years, 
        which shall include changes in outlays attributable to the 
        following: cost-of-living adjustments; changes in the number of 
        program recipients; increases in medical care prices, 
        utilization and intensity of medical care; and residual 
        factors.''.
    (f) Section 1109(a) of title 31, United States Code, is amended by 
inserting after the first sentence the following new sentence: ``For 
discretionary spending, these estimates shall assume the levels set 
forth in the discretionary spending limits under section 251(b) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as adjusted, 
for the appropriate fiscal years (and if no such limits are in effect, 
these estimates shall assume the adjusted levels for the most recent 
fiscal year for which such levels were in effect).''.

SEC. 153. THE CONGRESSIONAL BUDGET.

    Section 301(e) of the Congressional Budget Act of 1974 (as amended 
by section 103) is further amended--
            (1) in paragraph (1), by inserting at the end the 
        following: ``The basis of deliberations in developing such 
        joint resolution shall be the estimated budgetary levels for 
        the preceding fiscal year. Any budgetary levels pending before 
        the committee and the text of the joint resolution shall be 
        accompanied by a document comparing such levels or such text to 
        the estimated levels of the prior fiscal year. Any amendment 
        offered in the committee that changes a budgetary level and is 
        based upon a specific policy assumption for a program, project, 
        or activity shall be accompanied by a document indicating the 
        estimated amount for such program, project, or activity in the 
        current year.''; and
            (2) in paragraph (2), by striking ``and'' at the end of 
        subparagraph (H) (as redesignated), by striking the period and 
        inserting ``; and'' at the end of subparagraph (I) (as 
        redesignated), and by adding at the end the following new 
        subparagraph:
                    ``(J) a comparison of levels for the current fiscal 
                year with proposed spending and revenue levels for the 
                subsequent fiscal years along with the proposed 
                increase or decrease of spending in percentage terms 
                for each function.''.

SEC. 154. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.

    (a) The first sentence of section 202(e)(1) of the Congressional 
Budget Act of 1974 is amended by inserting ``compared to comparable 
levels for the current year'' before the comma at the end of 
subparagraph (A) and before the comma at the end of subparagraph (B).
    (b) Section 202(e)(1) of the Congressional Budget Act of 1974 is 
amended by inserting after the first sentence the following new 
sentence: ``Such report shall also include a table on sources of 
spending growth in total direct spending for the budget year and the 
ensuing 4 fiscal years, which shall include changes in outlays 
attributable to the following: cost-of-living adjustments; changes in 
the number of program recipients; increases in medical care prices, 
utilization and intensity of medical care; and residual factors.''.
    (c) Section 308(a)(1)(B) of the Congressional Budget Act of 1974 is 
amended by inserting ``and shall include a comparison of those levels 
to comparable levels for the current fiscal year'' before ``if timely 
submitted''.

SEC. 155. TREATMENT OF EMERGENCIES.

    Section 257(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (as amended by section 151) is further amended by adding at 
the end the following new paragraph:
            ``(6) Emergencies.--Budgetary resources for emergencies 
        shall be at the level provided in the reserve fund for 
        emergencies for that fiscal year pursuant to section 301(a)(4) 
        of the Congressional Budget Act of 1974.''.

             TITLE II--PUTTING A LID ON THE FEDERAL BUDGET

   Subtitle A--Spending Safeguards on the Growth of Entitlements and 
                              Mandatories

SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS AND MANDATORIES.

    (a) Control of Entitlements and Mandatories.--The Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended by adding after 
section 252 the following new section:

``SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING.

    ``(a) Cap on Growth of Entitlements.--Effective for fiscal year 
2009 and for each ensuing fiscal year, the total level of direct 
spending for all direct spending programs, projects, and activities 
(excluding social security) for any such fiscal year shall not exceed 
the total level of spending for all such programs, projects, and 
activities for the previous fiscal year after the direct spending for 
each such program, project, or activity is increased by the higher of 
the change in the Consumer Price Index for All Urban Consumers or the 
inflator (if any) applicable to that program, project, or activity and 
the growth in eligible population for such, project, or activity.
    ``(b) Sequestration.--Within 15 days after Congress adjourns to end 
a session (other than of the second session of the One Hundred Ninth 
Congress), and on the same day as a sequestration (if any) under 
section 251, there shall be a sequestration to reduce the amount of 
direct spending for the fiscal year beginning in the year the Congress 
adjourns by any amount necessary to reduce such spending to the level 
set forth in subsection (a) unless that amount is less than 
$250,000,000.
    ``(c) Uniform Reductions; Limitations.--The amount required to be 
sequestered for the fiscal year under subsection (a) shall be obtained 
from nonexempt direct spending accounts by actions taken in the 
following order:
            ``(1) First.--The reductions in the programs specified in 
        section 256(a) (National Wool Act and special milk), section 
        256(b) (student loans), and section 256(c) (foster care and 
        adoption assistance) shall be made.
            ``(2) Second.--Any additional reductions that may be 
        required shall be achieved by reducing each remaining nonexempt 
        direct spending account by the uniform percentage necessary to 
        achieve those additional reductions, except that--
                    ``(A) the low-income programs specified in section 
                256(d) shall not be reduced by more than 2 percent;
                    ``(B) the retirement and veterans benefits 
                specified in sections 256(f), (g), and (h) shall not be 
                reduced by more than 2 percent in the manner specified 
                in that section; and
                    ``(C) the medicare programs shall not be reduced by 
                more than 2 percent in the manner specified in section 
                256(i).
        The limitations set forth in subparagraphs (A), (B), and (C) 
        shall be applied iteratively, and after each iteration the 
        uniform percentage applicable to all other programs under this 
        paragraph shall be increased (if necessary) to a level 
        sufficient to achieve the reductions required by this 
        paragraph.''.
    (b) Table of Contents Amendment.--The table of contents set forth 
in 250(c) of the Balanced Budget and Emergency Deficit Control Act of 
1985 is amended by adding after the item relating to section 252 the 
following new item:

``Sec. 252A. Enforcing controls on direct spending.''.

SEC. 202. EXEMPT PROGRAMS AND ACTIVITIES.

    Section 255 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows:

``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.

    ``(a) Social Security Benefits; Tier I Railroad Retirement 
Benefits; and Certain Medicare Benefits.--(1) Benefits payable under 
the old-age, survivors, and disability insurance program established 
under title II of the Social Security Act, and benefits payable under 
section 3(a), 3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act of 
1974, shall be exempt from reduction under any order issued under this 
part.
    ``(2) Payments made under part A of title XVIII (relating to part A 
medicare hospital insurance benefits) of the Social Security Act and 
payments made under part C of such title (relating to the Medicare 
Advantage program) insofar as they are attributable to part A of such 
title shall be exempt from reduction under any order issued under this 
part.
    ``(b) Descriptions and Lists.--The following budget accounts or 
activities shall be exempt from sequestration:
            ``(1) net interest;
            ``(2) all payments to trust funds from excise taxes or 
        other receipts or collections properly creditable to those 
        trust funds;
            ``(3) all payments from one Federal direct spending budget 
        account to another Federal budget account; and all 
        intragovernmental funds including those from which funding is 
        derived primarily from other Government accounts, except to the 
        extent that such funds are augmented by direct appropriations 
        for the fiscal year for which the order is in effect;
            ``(4) activities resulting from private donations, 
        bequests, or voluntary contributions to the Government;
            ``(5) payments from any revolving fund or trust-revolving 
        fund (or similar activity) that provides deposit insurance or 
        other Government insurance, Government guarantees, or any other 
        form of contingent liability, to the extent those payments 
        result from contractual or other legally binding commitments of 
        the Government at the time of any sequestration;
            ``(6) credit liquidating and financing accounts;
            ``(7) the following accounts, which largely fulfill 
        requirements of the Constitution or otherwise make payments to 
        which the Government is committed:
                    ``Administration of Territories, Northern Mariana 
                Islands Covenant grants (14-0412-0-1-806);
                    ``Armed Forces Retirement Home Trust Fund, payment 
                of claims (84-8930-0-7-705);
                    ``Bureau of Indian Affairs, miscellaneous payments 
                to Indians (14-2303-0-1-452);
                    ``Bureau of Indian Affairs, miscellaneous trust 
                funds, tribal trust funds (14-9973-0-7-999);
                    ``Claims, defense;
                    ``Claims, judgments, and relief act (20-1895-0-1-
                806);
                    ``Compact of Free Association, economic assistance 
                pursuant to Public Law 99-658 (14-0415-0-1-806);
                    ``Compensation of the President (11-0001-0-1-802);
                    ``Customs Service, miscellaneous permanent 
                appropriations (20-9992-0-2-852);
                    ``Eastern Indian land claims settlement fund (14-
                2202-0-1-806);
                    ``Farm Credit Administration, Limitation on 
                Administration Expenses (78-4131-0-3-351);
                    ``Farm Credit System Financial Assistance 
                Corporation, interest payments (20-1850-0-1-351);
                    ``Internal Revenue collections of Puerto Rico (20-
                5737-0-2-852);
                    ``Panama Canal Commission, operating expenses and 
                capital outlay (95-5190-0-2-403);
                    ``Payments of Vietnam and USS Pueblo prisoner-of-
                war claims (15-0104-0-1-153);
                    ``Payments to copyright owners (03-5175-0-2-376);
                    ``Payments to health care trust funds (75-0580-0-1-
                571);
                    ``Payments to social security trust funds (75-0404-
                0-1-651);
                    ``Payments to the United States territories, fiscal 
                assistance (14-0418-0-1-801);
                    ``Payments to widows and heirs of deceased Members 
                of Congress (00-0215-0-1-801);
                    ``Pension Benefit Guaranty Corporation Fund (16-
                4204-0-3-601);
                    ``Salaries of Article III judges;
                    ``Washington Metropolitan Area Transit Authority, 
                interest payments (46-0300-0-1-401);
            ``(8) the following noncredit special, revolving, or trust-
        revolving funds:
Coinage profit fund (20-5811-0-2-803);
                    ``Comptroller of the Currency;
                    ``Director of the Office of Thrift Supervision;
                    ``Exchange Stabilization Fund (20-4444-0-3-155);
                    ``Federal Housing Finance Board;
                    ``Foreign Military Sales trust fund (11-82232-0-7-
                155);
                    ``National Credit Union Administration, central 
                liquidating facility (25-4470-0-3-373);
                    ``National Credit Union Administration, credit 
                union insurance fund (25-4468-0-3-373);
                    ``National Credit Union Administration operating 
                fund (25-4056-0-3-373); and
                    ``Resolution Trust Corporation Revolving Fund (22-
                4055-0-3-373);
            ``(9) Thrift Savings Fund;
            ``(10) appropriations for the District of Columbia to the 
        extent they are appropriations of locally raised funds;
            ``(11)(A) any amount paid as regular unemployment 
        compensation by a State from its account in the Unemployment 
        Trust Fund (established by section 904(a) of the Social 
        Security Act);
            ``(B) any advance made to a State from the Federal 
        unemployment account (established by section 904(g) of such 
        Act) under title XII of such Act and any advance appropriated 
        to the Federal unemployment account pursuant to section 1203 of 
        such Act; and
            ``(C) any payment made from the Federal Employees 
        Compensation Account (as established under section 909 of such 
        Act) for the purpose of carrying out chapter 85 of title 5, 
        United States Code, and funds appropriated or transferred to or 
        otherwise deposited in such Account; and
            ``(12)(A) FDIC, Bank Insurance Fund (51-4064-0-3-373);
            ``(B) FDIC, FSLIC Resolution Fund (51-4065-0-3-373); and
            ``(C) FDIC, Savings Association Insurance Fund (51-4066-0-
        3-373).
    ``(c) Federal Retirement and Disability Accounts.--The following 
Federal retirement and disability accounts shall be exempt from 
reduction under any order issued under this part:
            ``Civil service retirement and disability fund (24-8135-0-
        7-602).
            ``Black Lung Disability Trust Fund (20-8144-0-7-601).
            ``Foreign Service Retirement and Disability Fund (19-8186-
        0-7-602).
            ``District of Columbia Judicial Retirement and Survivors 
        Annuity Fund (20-8212-0-7-602).
            ``Judicial Survivors' Annuities Fund (10-8110-0-7-602).
            ``Payments to the Railroad Retirement Accounts (60-0113-0-
        1-601).
            ``Tax Court Judges Survivors Annuity Fund (23-8115-0-7-
        602).
            ``Employees Life Insurance Fund (24-8424-0-8-602).
    ``(d) Federal Administrative Expenses.--
            ``(1) Notwithstanding any provision of law other than 
        paragraph (3), administrative expenses incurred by the 
        departments and agencies, including independent agencies, of 
        the Government in connection with any program, project, 
        activity, or account shall be subject to reduction pursuant to 
        any sequestration order, without regard to any exemption, 
        exception, limitation, or special rule otherwise applicable 
        with respect to such program, project, activity, or account, 
        and regardless of whether the program, project, activity, or 
        account is self-supporting and does not receive appropriations.
            ``(2) Payments made by the Government to reimburse or match 
        administrative costs incurred by a State or political 
        subdivision under or in connection with any program, project, 
        activity, or account shall not be considered administrative 
        expenses of the Government for purposes of this section, and 
        shall be subject to sequestration to the extent (and only to 
        the extent) that other payments made by the Government under or 
        in connection with that program, project, activity, or account 
        are subject to that reduction or sequestration; except that 
        Federal payments made to a State as reimbursement of 
        administrative costs incurred by that State under or in 
        connection with the unemployment compensation programs 
        specified in subsection (a)(11) shall be subject to reduction 
        or sequestration under this part notwithstanding the exemption 
        otherwise granted to such programs under that subsection.
            ``(3) Notwithstanding any other provision of law, the 
        administrative expenses of the following programs shall be 
        exempt from sequestration:
                    ``(A) Comptroller of the Currency.
                    ``(B) Federal Deposit Insurance Corporation.
                    ``(C) Office of Thrift Supervision.
                    ``(D) National Credit Union Administration.
                    ``(E) National Credit Union Administration, central 
                liquidity facility.
                    ``(F) Federal Retirement Thrift Investment Board.
                    ``(G) Resolution Funding Corporation.
                    ``(H) Resolution Trust Corporation.
                    ``(I) Board of Governors of the Federal Reserve 
                System.
    ``(e) Veterans' Programs.--The following programs shall be exempt 
from reduction under any order issued under this part:
            ``General Post Funds (36-8180-0-7-705).
            ``Veterans Insurance and Indemnities (36-0120-0-1-701).
            ``Service-Disabled Veterans Insurance Funds (36-4012-0-3-
        701).
            ``Veterans Reopened Insurance Fund (36-4010-0-3-701).
            ``Servicemembers' Group Life Insurance Fund (36-4009-0-3-
        701).
            ``Post-Vietnam Era Veterans Education Account (36-8133-0-7-
        702).
            ``National Service Life Insurance Fund (36-8132-0-7-701).
            ``United States Government Life Insurance Fund (36-8150-0-
        7-701).
            ``Veterans Special Life Insurance Fund (36-8455-0-8-701).
    ``(f) Optional Exemption of Defense and Homeland Security 
Accounts.--
            ``(1) In general.--The President may, with respect to any 
        defense or homeland security account, exempt that account from 
        sequestration or provide for a lower uniform percentage 
        reduction than would otherwise apply.
            ``(2) Limitation.--The President may not use the authority 
        provided by paragraph (1) unless the President notifies the 
        Congress of the manner in which such authority will be 
        exercised on or before the date specified in section 254(a) for 
        the budget year.''.

SEC. 203. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.

    (a) In General.--Section 256 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended to read as follows:

``SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.

    ``(a) National Wool Act and the Special Milk Program.--Automatic 
spending increases are increases in outlays due to changes in indexes 
in the following programs:
            ``(1) National Wool Act.
            ``(2) Special milk program.
In those programs all amounts other than the automatic spending 
increases shall be exempt from reduction under any sequestration order.
    ``(b) Student Loans.--For all student loans under part B or D of 
title IV of the Higher Education Act of 1965 made during the period 
when a sequestration order under section 254 is in effect as required 
by section 252 or 253, origination fees under sections 438(c)(2) and 
455(c) of that Act shall each be increased by 0.50 percentage point.
    ``(c) Foster Care and Adoption Assistance Programs.--Any 
sequestration order shall make the reduction otherwise required under 
the foster care and adoption assistance programs (established by part E 
of title IV of the Social Security Act) only with respect to payments 
and expenditures made by States in which increases in foster care 
maintenance payment rates or adoption assistance payment rates (or 
both) are to take effect during the fiscal year involved, and only to 
the extent that the required reduction can be accomplished by applying 
a uniform percentage reduction to the Federal matching payments that 
each such State would otherwise receive under section 474 of that Act 
(for such fiscal year) for that portion of the State's payments 
attributable to the increases taking effect during that year. No 
State's matching payments from the Government for foster care 
maintenance payments or for adoption assistance maintenance payments 
may be reduced by a percentage exceeding the applicable domestic 
sequestration percentage. No State may, after the date of the enactment 
of this Act, make any change in the timetable for making payments under 
a State plan approved under part E of title IV of the Social Security 
Act which has the effect of changing the fiscal year in which 
expenditures under such part are made.
    ``(d) Low-Income Programs.--(1) Benefit payments or payments to 
States or other entities for the programs listed in paragraph (2) shall 
not be reduced by more than 2 percent under any sequestration order. 
When reduced under an end-of-session sequestration order, those benefit 
reductions shall occur starting with the payment made at the start of 
January. When reduced under a within-session sequestration order, those 
benefit reductions shall occur starting with the next periodic payment.
    ``(2) The programs referred to in paragraph (1) are the following:
            ``Child Nutrition (12-3539-0-1-605).
            ``Food Stamp Programs (12-3505-0-1-605).
            ``Grants to States for Medicaid (75-0512-0-1-551).
            ``State Children's Health Insurance Fund (75-0515-0-1-551).
            ``Supplemental Security Income Program (75-0406-0-1-609).
            ``Temporary Assistance for Needy Families (75-1552-0-1-
        609).
            ``Special supplemental nutrition program for women, 
        infants, and children (WIC) (12-3510-0-1-605).
    ``(e) Veterans' Medical Care.--The maximum permissible reduction in 
budget authority for Veterans' medical care (36-0160-0-1-703) for any 
fiscal year, pursuant to an order issued under section 254, shall be 2 
percent.
    ``(f) Federal Retirement Programs.--
            ``(1) For each of the programs listed in paragraph (2) and 
        except as provided in paragraph (3), monthly (or other 
        periodic) benefit payments shall be reduced by the uniform 
        percentage applicable to direct spending sequestrations for 
        such programs, which shall in no case exceed 2 percent under 
        any sequestration order. When reduced under an end-of-session 
        sequestration order, those benefit reductions shall occur 
        starting with the payment made at the start of January or 7 
        weeks after the order is issued, whichever is later. When 
        reduced under a within-session sequestration order, those 
        benefit reductions shall occur starting with the next periodic 
        payment.
            ``(2) The programs subject to paragraph (1) are:
                    ``Central Intelligence Agency Retirement and 
                Disability Fund (56-3400-0-1-054).
                    ``Comptrollers General Retirement System (05-0107-
                0-1-801).
                    ``Payments to the Foreign Service Retirement and 
                Disability Fund (72-1036-0-1-153).
                    ``Judicial Officer' Retirement Fund (10-8122-0-7-
                602).
                    ``Claims Judges' Retirement Fund (10-8124-0-7-602).
                    ``Pensions for former Presidents (47-0105-0-1-802).
                    ``National Oceanic and Atmospheric Administration 
                Retirement (13-1450-0-1-306).
                    ``Railroad Industry Pension Fund (60-8011-0-7-601).
                    ``Retired pay, Coast Guard (70-0602-0-1-403).
                    ``Retirement pay and medical benefits for 
                commissioned officers, Public Health Service (75-0379-
                0-1-551).
                    ``Payments to Civil Service Retirement and 
                Disability Fund (24-0200-0-1-805).
                    ``Payments to the Foreign Service Retirement and 
                Disability Fund (72-1036-0-1-153)
                    ``Payments to Judiciary Trust Funds (10-0941-0-1-
                752).
    ``(g) Veterans Programs.--To achieve the total percentage reduction 
required by any order issued under this part, the percentage reduction 
that shall apply to payments under the following programs shall in no 
event exceed 2 percent:
            ``Canteen Service Revolving Fund (36-4014-0-3-705).
            ``Medical Center Research Organizations (36-4026-0-3-703).
            ``Disability Compensation Benefits (36-0102-0-1-701).
            ``Education Benefits (36-0137-0-1-702).
            ``Vocational Rehabilitation and Employment Benefits (36-
        0135-0-1-702).
            ``Pensions Benefits (36-0154-0-1-701).
            ``Burial Benefits (36-0139-0-1-701).
            ``Guaranteed Transitional Housing Loans For Homeless 
        Veterans Program Account (36-1119-0-1-704).
            ``Housing Direct Loan Financing Account (36-4127-0-1-704).
            ``Housing Guaranteed Loan Financing Account (36-4129-0-3-
        704).
            ``Vocational Rehabilitation and Education Direct Loan 
        Financing Account (36-4259-0-3-702).
    ``(h) Military Health and Retirement.--To achieve the total 
percentage reduction in military retirement required by any order 
issued under this part, the percentage reduction that shall apply to 
payments under the Military retirement fund (97-8097-0-7-602), payments 
to the military retirement fund (97-0040-0-1-054), and the Defense 
Health Program (97-0130-0-1-051) shall in no event exceed 2 percent.
    ``(i) Medicare Program.--
            ``(1) Calculation of reduction in individual payment 
        amounts.--To achieve the total percentage reduction in those 
        programs required by any order issued under this part, the 
        percentage reduction that shall apply to payments under the 
        health insurance programs under title XVIII of the Social 
        Security Act (other than payments described in section 
        255(a)(2)) that are subject to such order for services 
        furnished after any sequestration order is issued shall be such 
        that the reduction made in payments under that order shall 
        achieve the required total percentage reduction in those 
        payments for that fiscal year as determined on a 12-month 
        basis. However, the percentage reduction under any such program 
        shall in no case exceed 2 percent under any sequestration 
        order.
            ``(2) Timing of application of reductions.--If a reduction 
        is made under paragraph (1) in payment amounts pursuant to a 
        sequestration order, the reduction shall be applied to payment 
        for services furnished after the effective date of the order.
            ``(3) No increase in beneficiary charges in assignment-
        related cases.--If a reduction in payment amounts is made under 
        paragraph (1) for services for which payment under part B of 
        title XVIII of the Social Security Act is made on the basis of 
        an assignment described in section 1842(b)(3)(B)(ii), in 
        accordance with section 1842(b)(6)(B), or under the procedure 
        described in section 1870(f)(1) of such Act, the person 
        furnishing the services shall be considered to have accepted 
        payment of the reasonable charge for the services, less any 
        reduction in payment amount made pursuant to a sequestration 
        order, as payment in full.
            ``(4) Application to parts c and d.--The reductions 
        otherwise required under parts C and D of title XVIII of the 
        Social Security Act with respect to a fiscal year shall be 
        applied to the calendar year that begins after the end of the 
        fiscal year to which the applicable sequestration order 
        applies.
    ``(j) Federal Pay.--
            ``(1) In general.--For purposes of any order issued under 
        section 254, new budget authority to pay Federal personnel 
        shall be reduced by the applicable uniform percentage, but no 
        sequestration order may reduce or have the effect of reducing 
        the rate of pay to which any individual is entitled under any 
        statutory pay system (as increased by any amount payable under 
        section 5304 of title 5, United States Code, or section 302 of 
        the Federal Employees Pay Comparability Act of 1990) or the 
        rate of any element of military pay to which any individual is 
        entitled under title 37, United States Code, or any increase in 
        rates of pay which is scheduled to take effect under section 
        5303 of title 5, United States Code, section 1009 of title 37, 
        United States Code, or any other provision of law.
            ``(2) Definitions.--For purposes of this subsection:
                    ``(A) The term `statutory pay system' shall have 
                the meaning given that term in section 5302(1) of title 
                5, United States Code.
                    ``(B) The term `elements of military pay' means--
                            ``(i) the elements of compensation of 
                        members of the uniformed services specified in 
                        section 1009 of title 37, United States Code,
                            ``(ii) allowances provided members of the 
                        uniformed services under sections 403a and 405 
                        of such title, and
                            ``(iii) cadet pay and midshipman pay under 
                        section 203(c) of such title.
                    ``(C) The term `uniformed services' shall have the 
                meaning given that term in section 101(3) of title 37, 
                United States Code.
    ``(k) Child Support Enforcement Program.--Any sequestration order 
shall accomplish the full amount of any required reduction in 
expenditures under sections 455 and 458 of the Social Security Act by 
reducing the Federal matching rate for State administrative costs under 
such program, as specified (for the fiscal year involved) in section 
455(a) of such Act, to the extent necessary to reduce such expenditures 
by that amount.
    ``(l) Extended Unemployment Compensation.--(1) A State may reduce 
each weekly benefit payment made under the Federal-State Extended 
Unemployment Compensation Act of 1970 for any week of unemployment 
occurring during any period with respect to which payments are reduced 
under an order issued under this title by a percentage not to exceed 
the percentage by which the Federal payment to the State under section 
204 of such Act is to be reduced for such week as a result of such 
order.
    ``(2) A reduction by a State in accordance with subparagraph (A) 
shall not be considered as a failure to fulfill the requirements of 
section 3304(a)(11) of the Internal Revenue Code of 1954.
    ``(m) Commodity Credit Corporation.--
            ``(1) Powers and authorities of the commodity credit 
        corporation.--This title shall not restrict the Commodity 
        Credit Corporation in the discharge of its authority and 
        responsibility as a corporation to buy and sell commodities in 
        world trade, to use the proceeds as a revolving fund to meet 
        other obligations and otherwise operate as a corporation, the 
        purpose for which it was created.
            ``(2) Reduction in payments made under contracts.--(A) 
        Payments and loan eligibility under any contract entered into 
        with a person by the Commodity Credit Corporation prior to the 
        time any sequestration order has been issued shall not be 
        reduced by an order subsequently issued. Subject to 
        subparagraph (B), after any sequestration order is issued for a 
        fiscal year, any cash payments made by the Commodity Credit 
        Corporation--
                    ``(i) under the terms of any one-year contract 
                entered into in or after such fiscal year and after the 
                issuance of the order; and
                    ``(ii) out of an entitlement account,
        to any person (including any producer, lender, or guarantee 
        entity) shall be subject to reduction under the order.
            ``(B) Each contract entered into with producers or producer 
        cooperatives with respect to a particular crop of a commodity 
        and subject to reduction under subparagraph (A) shall be 
        reduced in accordance with the same terms and conditions. If 
        some, but not all, contracts applicable to a crop of a 
        commodity have been entered into prior to the issuance of any 
        sequestration order, the order shall provide that the necessary 
        reduction in payments under contracts applicable to the 
        commodity be uniformly applied to all contracts for succeeding 
        crops of the commodity, under the authority provided in 
        paragraph (3).
            ``(3) Delayed reduction in outlays permissible.--
        Notwithstanding any other provision of this title, if any 
        sequestration order is issued with respect to a fiscal year, 
        any reduction under the order applicable to contracts described 
        in paragraph (2) may provide for reductions in outlays for the 
        account involved to occur in the fiscal years following the 
        fiscal year to which the order applies.
            ``(4) Uniform percentage rate of reduction and other 
        limitations.--All reductions described in paragraph (2) that 
        are required to be made in connection with any sequestration 
        order with respect to a fiscal year--
                    ``(A) shall be made so as to ensure that outlays 
                for each program, project, activity, or account 
                involved are reduced by a percentage rate that is 
                uniform for all such programs, projects, activities, 
                and accounts, and may not be made so as to achieve a 
                percentage rate of reduction in any such item exceeding 
                the rate specified in the order; and
                    ``(B) with respect to commodity price support and 
                income protection programs, shall be made in such 
                manner and under such procedures as will attempt to 
                ensure that--
                            ``(i) uncertainty as to the scope of 
                        benefits under any such program is minimized;
                            ``(ii) any instability in market prices for 
                        agricultural commodities resulting from the 
                        reduction is minimized; and
                            ``(iii) normal production and marketing 
                        relationships among agricultural commodities 
                        (including both contract and non-contract 
                        commodities) are not distorted.
                In meeting the criterion set out in clause (iii) of 
                subparagraph (B) of the preceding sentence, the 
                President shall take into consideration that reductions 
                under an order may apply to programs for two or more 
                agricultural commodities that use the same type of 
                production or marketing resources or that are 
                alternative commodities among which a producer could 
                choose in making annual production decisions.
            ``(5) Certain authority not to be limited.--Nothing in this 
        title shall limit or reduce in any way any appropriation that 
        provides the Commodity Credit Corporation with funds to cover 
        the Corporation's net realized losses.
    ``(n) Postal Service Fund.--Notwithstanding any other provision of 
law, any sequestration of the Postal Service Fund shall be accomplished 
by a payment from that Fund to the General Fund of the Treasury, and 
the Postmaster General of the United States shall make the full amount 
of that payment during the fiscal year to which the presidential 
sequestration order applies.
    ``(o) Effects of Sequestration.--The effects of sequestration shall 
be as follows:
            ``(1) Budgetary resources sequestered from any account 
        other than an entitlement trust, special, or revolving fund 
        account shall revert to the Treasury and be permanently 
        canceled.
            ``(2) Except as otherwise provided, the same percentage 
        sequestration shall apply to all programs, projects, and 
        activities within a budget account (with programs, projects, 
        and activities as delineated in the appropriation Act or 
        accompanying report for the relevant fiscal year covering that 
        account, or for accounts not included in appropriation Acts, as 
        delineated in the most recently submitted President's budget).
            ``(3) Administrative regulations or similar actions 
        implementing a sequestration shall be made within 120 days of 
        the sequestration order. To the extent that formula allocations 
        differ at different levels of budgetary resources within an 
        account, program, project, or activity, the sequestration shall 
        be interpreted as producing a lower total appropriation, with 
        that lower appropriation being obligated as though it had been 
        the pre-sequestration appropriation and no sequestration had 
        occurred.
            ``(4) Except as otherwise provided, obligations in 
        sequestered direct spending accounts shall be reduced in the 
        fiscal year in which a sequestration occurs and in all 
        succeeding fiscal years.
            ``(5) If an automatic spending increase is sequestered, the 
        increase (in the applicable index) that was disregarded as a 
        result of that sequestration shall not be taken into account in 
        any subsequent fiscal year.
            ``(6) Except as otherwise provided, sequestration in 
        accounts for which obligations are indefinite shall be taken in 
        a manner to ensure that obligations in the fiscal year of a 
        sequestration and succeeding fiscal years are reduced, from the 
        level that would actually have occurred, by the applicable 
        sequestration percentage.''.
    (b) Conforming Amendment.--The table of contents set forth in 
250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 
is amended by amending the item relating to section 256 to read as 
follows:

``Sec. 256. Exceptions, limitations, and special rules.''.

SEC. 204. POINT OF ORDER.

    (a) Entitlement Point of Order.--Section 312 of the Congressional 
Budget Act of 1974 is amended by adding at the end the following new 
subsection:
    ``(g) Entitlement Point of Order.--It shall not be in order in the 
House of Representatives or the Senate to consider any bill, joint 
resolution, amendment, or conference report that--
            ``(1) increases aggregate level of direct spending for any 
        ensuing fiscal year; or
            ``(2) includes any provision that has the effect of 
        modifying the application of section 252A of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 to any 
        entitlement program subject to sequestration or exempt from 
        sequestration under such Act.''.

SEC. 205. TECHNICAL AND CONFORMING AMENDMENTS.

    The Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended as follows:
            (1) Section 251(a)(1) is amended by inserting ``, section 
        252A,'' after ``section 252''.
            (2) Section 254(c)(4)(B) is amended by inserting ``or 
        section 252A'' after ``section 252''.
            (3) Section 254(c) is amended by redesignating paragraph 
        (5) as paragraph (6) and by inserting after paragraph (4) the 
        following new paragraph:
            ``(5) Direct spending control sequestration reports.--The 
        preview reports shall set forth, for the current year and the 
        budget year, estimates for each of the following:
                    ``(A) The total level of direct spending for all 
                programs, projects, and activities (excluding social 
                security).
                    ``(B) The sequestration percentage or (if the 
                required sequestration percentage is greater than the 
                maximum allowable percentage) percentages necessary to 
                comply with section 252A.''.
            (4) Section 254(f) is amended by redesignating paragraphs 
        (4) and (5) as paragraphs (5) and (6) and by inserting after 
        paragraph (3) the following new paragraph:
            ``(4) Direct spending control sequestration reports.--The 
        final reports shall contain all the information required in the 
        direct spending control sequestration preview reports. In 
        addition, these reports shall contain, for the budget year, for 
        each account to be sequestered, estimates of the baseline level 
        of sequesterable budgetary resources and resulting outlays and 
        the amount of budgetary resources to be sequestered and 
        resulting outlay reductions. The reports shall also contain 
        estimates of the effects on outlays of the sequestration in 
        each outyear for direct spending programs.''.
            (5) Section 258C(a)(1) is amended by inserting ``, 252A,'' 
        after ``section 252''.
            (6) Section 275(b) is amended by striking ``2002'' and 
        inserting ``2018'' and by striking the second sentence thereof.

SEC. 206. ESTABLISHMENT OF BUDGET PROTECTION MANDATORY ACCOUNT.

    Title III of the Congressional Budget Act of 1974 (as amended by 
section 521) is further amended by adding at the end the following new 
section:

                 ``budget protection mandatory account

    ``Sec. 320.  (a) Establishment of Account.--The chairman of the 
Committee on the Budget of the House of Representatives and of the 
Senate shall each maintain an account to be known as the `Budget 
Protection Mandatory Account'. The Account shall be divided into 
entries corresponding to the House or Senate committees, as applicable, 
that received allocations under section 302(a) in the most recently 
adopted concurrent resolution on the budget, except that it shall not 
include the Committee on Appropriations of that House and each entry 
shall consist of the `First Year Budget Protection Balance' and the 
`Five Year Budget Protection Balance'.
    ``(b) Components.--Each entry shall consist only of amounts 
credited to it under subsection (c). No entry of a negative amount 
shall be made.
    ``(c) Crediting of Amounts to Account.--(1) Whenever a Member or 
Senator, as the case may be, offers an amendment to a bill that reduces 
the amount of mandatory budget authority provided either under current 
law or proposed to be provided by the bill under consideration, that 
Member or Senator may state the portion of such reduction achieved in 
the first year covered by the most recently adopted concurrent 
resolution on the budget and in addition the portion of such reduction 
achieved in the first five years covered by the most recently adopted 
concurrent resolution on the budget that shall be--
            ``(A) credited to the First Year Budget Protection Balance 
        and the Five Year Budget Protection Balance in the House or 
        Senate, as applicable;
            ``(B) used to offset an increase in other new budget 
        authority;
            ``(C) allowed to remain within the applicable section 
        302(a) allocation; or
            ``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new budget 
authority resulting from the amendment shall be credited to the First 
Year Budget Protection Balance and the Five Year Budget Protection 
Balance, as applicable, if the amendment is agreed to.
    ``(2) Except as provided by paragraph (3), the chairman of the 
Committee on the Budget of the House or Senate, as applicable, shall, 
upon the engrossment of any bill, other than an appropriation bill, by 
the House or Senate, as applicable, credit to the applicable entry 
balances amounts of new budget authority and outlays equal to the net 
amounts of reductions in budget authority and in outlays resulting from 
amendments agreed to by that House to that bill.
    ``(3) When computing the net amounts of reductions in budget 
authority and in outlays resulting from amendments agreed to by the 
House or Senate, as applicable, to a bill, the chairman of the 
Committee on the Budget of that House shall only count those portions 
of such amendments agreed to that were so designated by the Members or 
Senators offering such amendments as amounts to be credited to the 
First Year Budget Protection Balance and the Five Year Budget 
Protection Balance, or that fall within the last sentence of paragraph 
(1).
    ``(4) The chairman of the Committee on the Budget of the House and 
of the Senate shall each maintain a running tally of the amendments 
adopted reflecting increases and decreases of budget authority in the 
bill as reported to its House. This tally shall be available to Members 
or Senators during consideration of any bill by that House.
    ``(d) Calculation of Lock-Box Savings in House and Senate.--For the 
purposes of enforcing section 302(a), upon the engrossment of any bill, 
other than an appropriation bill, by the House or Senate, as 
applicable, the amount of budget authority and outlays calculated 
pursuant to subsection (c)(3) shall be counted against the 302(a) 
allocation provided to the applicable committee or committees of that 
House which reported the bill as if the amount calculated pursuant to 
subsection (c)(3) was included in the bill just engrossed.
    ``(e) Definition.--As used in this section, the term `appropriation 
bill' means any general or special appropriation bill, and any bill or 
joint resolution making supplemental, deficiency, or continuing 
appropriations through the end of fiscal year 2009 or any subsequent 
fiscal year, as the case may be.''.

               Subtitle B--Discretionary Spending Limits

SEC. 211. ENFORCING DISCRETIONARY SPENDING LIMITS.

    (a) Discretionary Spending Limits.--Sections 251(b) and (c) of the 
Balanced Budget and Emergency Deficit Control of Act of 1985 are 
amended to read as follows:
    ``(b) Discretionary Spending Limit.--As used in this part, the term 
`discretionary spending limit' means--
            ``(1) with respect to fiscal year 2009--
                    ``(A) $926,378,000,000 in new budget authority of 
                which no more than $344,775,000,000 shall be for the 
                nondefense category; and
                    ``(B) $992,720,000,000 in outlays of which no more 
                than $376,020,000,000 shall be for the nondefense 
                category;
            ``(2) with respect to fiscal year 2010--
                    ``(A) $946,503,000,000 in new budget authority of 
                which no more than $404,483,000,000 shall be for the 
                nondefense category; and
                    ``(B) $1,006,518,000,000 in outlays of which no 
                more than $436,940,000,000 shall be for the nondefense 
                category;
            ``(3) with respect to fiscal year 2011--
                    ``(A) $969,387,000,000 in new budget authority of 
                which no more than $421,343,000,000 shall be for the 
                nondefense category; and
                    ``(B) $1,024,601,000,000 in outlays of which no 
                more than $469,240,000,000 shall be for the nondefense 
                category;
            ``(4) with respect to fiscal year 2012--
                    ``(A) $992,727,000,000 in new budget authority of 
                which no more than $435,814,000,000 shall be for the 
                nondefense category; and
                    ``(B) $1,034,486,000,000 in outlays of which no 
                more than $485,720,000,000 shall be for the nondefense 
                category; and
            ``(5) with respect to fiscal year 2013--
                    ``(A) $1,016,876,000,000 in new budget authority of 
                which no more than $451,015,000,000 shall be for the 
                nondefense category; and
                    ``(B) $1,061,007,000,000 in outlays of which no 
                more than $501,500,000,000 shall be for the nondefense 
                category;''.
    (b) Discretionary Spending Limit Point of Order.--Section 312 of 
the Congressional Budget Act of 1974 (as amended by section 214(a)) is 
further amended by adding at the end the following new subsection:
    ``(h) Discretionary Spending Limit Point of Order.--It shall not be 
in order in the House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, or conference report that--
            ``(1) increases the discretionary spending limits for any 
        ensuing fiscal year after the budget year; or
            ``(2) would cause the discretionary spending limits for the 
        budget year to be breached.''.
    (c) Advance Appropriation Point of Order.--Section 312 of the 
Congressional Budget Act of 1974 (as amended by this section) is 
further amended by adding at the end the following new subsection:
    ``(i) Advance Appropriation Point of Order.--It shall not be in 
order in the House of Representatives or the Senate to consider any 
appropriation bill or joint resolution, or amendment thereto or 
conference report thereon, that provides advance discretionary new 
budget authority that first becomes available for any fiscal year after 
the budget year at an amount for any program, project, or activity 
above the amount of appropriations for fiscal year 2007 for such 
program, project, or activity.''.

SEC. 212. ESTABLISHMENT OF BUDGET PROTECTION DISCRETIONARY ACCOUNT.

    (a) Budget Protection Discretionary Account.--Title III of the 
Congressional Budget Act of 1974 (as amended by section 206) is further 
amended by adding at the end the following new section:

               ``budget protection discretionary account

    ``Sec. 321.  (a) Establishment of Account.--The chairman of the 
Committee on the Budget of the House of Representatives and of the 
Senate shall each maintain an account to be known as the `Budget 
Protection Discretionary Account'. The Account shall be divided into 
entries corresponding to the subcommittees of the Committee on 
Appropriations of that House and each entry shall consist of the 
`Budget Protection Balance'.
    ``(b) Components.--Each entry shall consist only of amounts 
credited to it under subsection (c). No entry of a negative amount 
shall be made.
    ``(c) Crediting of Amounts to Account.--(1) Whenever a Member or 
Senator, as the case may be, offers an amendment to an appropriation 
bill to reduce new budget authority in any account, that Member or 
Senator may state the portion of such reduction that shall be--
            ``(A) credited to the Budget Protection Balance;
            ``(B) used to offset an increase in new budget authority in 
        any other account; or
            ``(C) allowed to remain within the applicable section 
        302(b) suballocation.
If no such statement is made, the amount of reduction in new budget 
authority resulting from the amendment shall be credited to the Budget 
Protection Balance, as applicable, if the amendment is agreed to.
    ``(2) Except as provided by paragraph (3), the chairman of the 
Committee on the Budget of the House or Senate, as applicable, shall, 
upon the engrossment of any appropriation bill by the House or Senate, 
as applicable, credit to the applicable entry balances amounts of new 
budget authority and outlays equal to the net amounts of reductions in 
budget authority and in outlays resulting from amendments agreed to by 
that House to that bill.
    ``(3) When computing the net amounts of reductions in new budget 
authority and in outlays resulting from amendments agreed to by the 
House or Senate, as applicable, to an appropriation bill, the chairman 
of the Committee on the Budget of that House shall only count those 
portions of such amendments agreed to that were so designated by the 
Members offering such amendments as amounts to be credited to the 
Budget Protection Balance, or that fall within the last sentence of 
paragraph (1).
    ``(4) The chairman of the Committee on the Budget of the House and 
of the Senate shall each maintain a running tally of the amendments 
adopted reflecting increases and decreases of budget authority in the 
bill as reported to its House. This tally shall be available to Members 
or Senators during consideration of any bill by that House.
    ``(d) Calculation of Lock-Box Savings in House and Senate.--(1) For 
the purposes of enforcing section 302(a), upon the engrossment of any 
appropriation bill by the House or Senate, as applicable, the amount of 
budget authority and outlays calculated pursuant to subsection (c)(3) 
shall be counted against the 302(a) allocation provided to the 
Committee on Appropriations as if the amount calculated pursuant to 
subsection (c)(3) was included in the bill just engrossed.
    ``(2) For purposes of enforcing section 302(b), upon the 
engrossment of any appropriation bill by the House or Senate, as 
applicable, the 302(b) allocation provided to the subcommittee for the 
bill just engrossed shall be deemed to have been reduced by the amount 
of budget authority and outlays calculated, pursuant to subsection 
(c)(3).
    ``(e) Definition.--As used in this section, the term `appropriation 
bill' means any general or special appropriation bill, and any bill or 
joint resolution making supplemental, deficiency, or continuing 
appropriations through the end of fiscal year 2010 or any subsequent 
fiscal year, as the case may be.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 319 the 
following new items:

``Sec. 320. Budget protection mandatory account.
``Sec. 321. Budget protection discretionary account.''.

SEC. 213. REVENUE ADJUSTMENT.

    If an amendment is designated to be used to offset a decrease in 
receipts for a fiscal year pursuant to section 320(c)(1)(D) or section 
321(c)(1)(D) of the Congressional Budget Act of 1974, then the 
applicable level of revenues for such fiscal year for purposes of 
section 311(a) of such Act shall be reduced by the amount of such 
amendment.

               Subtitle C--Long-Term Unfunded Obligations

SEC. 221. LONG-TERM UNFUNDED OBLIGATIONS.

    (a) In General.--Title IV of the Congressional Budget Act of 1974 
is amended by adding at the end the following:

                ``PART C--LONG-TERM UNFUNDED OBLIGATIONS

``SEC. 441. ANALYSIS OF LONG-TERM UNFUNDED OBLIGATIONS.

    ``Beginning in fiscal year 2009, the President's budget submission 
shall include an analysis of long-term unfunded obligations. This 
analysis shall include:
            ``(1) An analysis of the impact of long-term unfunded 
        obligations in applicable entitlement programs on the long-term 
        level of unified budget outlays and the unified budget surplus 
        or deficit, in relation to the projected level of the Gross 
        Domestic Product.
            ``(2) A report on the impact of legislation enacted during 
        the previous session of Congress that increases the long-term 
        unfunded obligation in any applicable group of entitlement 
        program.
            ``(3) An analysis of the impact of legislation proposed in 
        the President's budget on the long-term unfunded obligation in 
        any applicable entitlement program.

``SEC. 442. POINT OF ORDER AGAINST LEGISLATION INCREASING LONG-TERM 
              UNFUNDED OBLIGATIONS.

    ``It shall not be in order in the House of Representatives or in 
the Senate to consider any bill, joint resolution, motion, amendment, 
or conference report that would increase the long-term unfunded 
obligation in any applicable group of entitlement programs.

``SEC. 443. STANDARD FOR DETERMINING INCREASE IN LONG-TERM UNFUNDED 
              OBLIGATION.

    ``For the purpose of this part, legislation shall be considered to 
increase the long-term unfunded obligation of an applicable group of 
entitlement programs if it either--
            ``(1) increases the excess of the discounted present value 
        of the expenditures of programs in the group above the 
        discounted present value of the dedicated receipts of programs 
        in the group over a long-term estimating period by more than an 
        applicable threshold; or
            ``(2) increases the dollar level of the expenditures of 
        programs in the group above the dedicated receipts of programs 
        in the group above the dedicated receipts of programs in the 
        group in the last year of the estimating period by more than 
        the applicable threshold.

``SEC. 444. LONG-TERM UNFUNDED OBLIGATION ANALYSES BY CONGRESSIONAL 
              BUDGET OFFICE.

    ``The Director of the Congressional Budget Office shall, to the 
extent practicable, prepare for each bill or resolution of a public 
character reported by any committee of the House of Representatives or 
the Senate (except the Committee on Appropriations of each House), and 
submit to such committee--
            ``(1) an estimate of any increase of the long-term unfunded 
        obligation of any applicable entitlement program which would be 
        incurred in carrying out such bill or resolution as measured by 
        the increase of the excess of the discounted present value of 
        the expenditures of such program above the discounted present 
        value of the dedicated receipts of such program over a long-
        term estimating period by more than an applicable threshold; 
        and
            ``(2) an estimate of any increase in the dollar level of 
        the expenditures of such program above the dedicated receipts 
        of such program above the dedicated receipts of such program in 
        the last year of the estimating period by more than the 
        applicable threshold.
The estimates and description so submitted shall be included in the 
report accompanying such bill or resolution if timely submitted to such 
committee before such report is filed.

``SEC. 445. DEFINITIONS.

    ``As used in this part--
            ``(1) the term `applicable entitlement program' shall be 
        defined as any one of the following programs:
                    ``(A) Old Age, Survivors, and Disability Insurance.
                    ``(B) Medicare.
                    ``(C) Civilian retirement and disability (combined 
                Civil Service Retirement System and Federal Employees 
                Retirement System).
                    ``(D) Foreign Service Retirement and Disability 
                (combined Foreign Service Retirement and Disability 
                System and Foreign Service Pension System).
                    ``(E) Retired Employees Health Benefits.
                    ``(F) Military Retirement System.
                    ``(G) Uniformed Services Retiree Health Care 
                System.
                    ``(H) Railroad Retirement System (combined Rail 
                Industry Pension Fund, Social Security Equivalent 
                Benefit Account, and National Railroad Retirement 
                Investment Trust).
                    ``(I) Supplemental Security Income (SSI).
                    ``(J) For estimates made on or after January 1, 
                2008, veterans disability compensation.
                    ``(K) Any other entitlement program with regularly 
                available long-term estimates.
            ``(2) The term `entitlement program with regularly 
        available long-term estimates' means a program for which the 
        Director of the Congressional Budget Office, in consultation 
        with the Committees on the Budget of the House of 
        Representatives and the Senate and the Director of the Office 
        of Management and Budget, has determined that it is feasible to 
        make long-term estimates of expenditures and dedicated receipts 
        based on explicit demographic, economic, and other estimating 
        assumptions. The Director shall notify the House and Senate 
        Committees on the Budget in writing, whenever he or she makes 
        such a determination.
            ``(3) The term `applicable group of entitlement programs' 
        shall be defined as any of the following:
                    ``(A) Old Age, Survivors, and Disability Insurance.
                    ``(B) All applicable entitlement programs except 
                Old Age, Survivors, and Disability Insurance.
            ``(4) The term `long-term estimating period' shall be 
        defined as 75 years, starting with the current year, for all 
        applicable entitlement programs except for Old Age, Survivors, 
        and Disability Insurance. For Old Age, Survivors, and 
        Disability Insurance, the term shall be defined as the infinite 
        period of years utilized in the most recent annual report of 
        the Board of Trustees provided pursuant to section 201(c)(2) of 
        the Social Security Act.
            ``(5) The term `last year of the estimating period' shall 
        be defined as the 75th year of the long-term estimating period.
            ``(6) The term `dedicated receipts' shall be defined, for 
        all applicable entitlement programs other than Medicare, as 
        taxes and fees received from the public, payments received from 
        Federal agencies on behalf of Federal agency employees who are 
        participants in the program, transfers received by the program 
        under section 7(c)(2) of the Railroad Retirement Act of 1974 
        (45 U.S.C. 231f(c)(2)), and transfers from the general fund of 
        amounts equivalent to income tax receipts under section 86 of 
        the Internal Revenue Code. Dedicated receipts shall not include 
        payments from the general fund to amortize a program's unfunded 
        liability or payments of interest on a program's trust fund 
        holdings. For Medicare, `dedicated receipts' shall be defined 
        according to section 801(c)(3) of the Medicare Prescription 
        Drug, Improvement, and Modernization Act of 2003.
            ``(7) The term `expenditures' shall be defined, for all 
        applicable entitlement programs other than Medicare, to include 
        benefit payments, administrative expenses to the extent paid 
        from a dedicated fund, and transfers to other programs made 
        under section 7(c)(2) of the Railroad Retirement Act of 1974 
        (45 U.S.C. 231f(c)(2)). For Medicare, `expenditures' shall be 
        defined according to section 801(c)(4) of the Medicare 
        prescription Drug, Improvement, and Modernization Act of 2003.
            ``(8) The term `applicable threshold' shall be defined as:
                    ``(A) For a group of applicable entitlement 
                programs over a long-term estimating period--
                            ``(i) 0.02 percent of the present value of 
                        the taxable payroll of the group of programs 
                        over the estimating period, for legislation 
                        affecting Old Age, Survivors, and Disability 
                        Insurance or Medicare; and
                            ``(ii) 1 percent of the present value of 
                        the expenditures over the estimating period of 
                        the programs in the group that are affected by 
                        the legislation.
                    ``(B) For a group of applicable entitlement 
                programs in the last year of the estimating period--
                            ``(i) 0.02 percent of the taxable payroll 
                        of the group of programs in that year, for 
                        legislation affecting Old Age, Survivors, and 
                        Disability Insurance or Medicare;
                            ``(ii) 0.01 percent of Gross Domestic 
                        Product in that year; or
                            ``(iii) 1 percent of the expenditures in 
                        that year of the programs in the group that are 
                        affected by the legislation.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding after the item relating to section 428 the 
following:

                ``Part C--Long-Term Unfunded Obligations

``Sec. 441. Analysis of long-term unfunded obligations.
``Sec. 442. Point of order against legislation increasing long-term 
                            unfunded obligations.
``Sec. 443. Standard for determining increase in long-term unfunded 
                            obligation.
``Sec. 444. Long-term unfunded obligation analyses by congressional 
                            budget office.
``Sec. 445. Definitions.''.

SEC. 222. POINTS OF ORDER.

    Section 904 of the Congressional Budget Act of 1974 is amended as 
follows:
            (1) Subsection (c)(1) is amended by adding ``442,'' after 
        ``310(d)(2), 313,''.
            (2) Subsection (d)(2) is amended by adding ``442,'' after 
        ``310(d)(2), 313,''.

SEC. 223. SOCIAL SECURITY.

    Section 13302(a) of subtitle C of the Budget Enforcement Act of 
1990 is amended to read as follows:
    ``(a) In General.--It shall be not be in order in the House of 
Representatives to consider any bill, or joint resolution, as reported, 
or any amendment thereto or conference report thereon, if, upon 
enactment, such legislation under consideration would increase the 
long-term unfunded obligation of the OASDI program, as defined in 
section 443 of the Congressional Budget Act of 1974.''.

              TITLE III--COMBATING WASTE, FRAUD, AND ABUSE

                         Subtitle A--Sunsetting

SEC. 301. REAUTHORIZATION OF DISCRETIONARY PROGRAMS AND UNEARNED 
              ENTITLEMENTS.

    (a) Fiscal Year 2011.--Effective October 1, 2010, spending 
authority for each unearned entitlement and high-cost discretionary 
spending program is frozen at then current levels unless such spending 
authority is reauthorized after the date of enactment of this Act.
    (b) Fiscal Year 2012.--Effective October 1, 2011, spending 
authority for each discretionary spending program (not including high-
cost discretionary spending programs) is frozen at then current levels 
unless such spending authority is reauthorized after the date of 
enactment of this Act.
    (c) Definitions.--For purposes of this title--
            (1) the term ``unearned entitlement'' means an entitlement 
        not earned by service or paid for in total or in part by 
        assessments or contributions such as Social Security, veterans' 
        benefits, retirement programs, and medicare; and
            (2) the term ``high-cost discretionary program'' means the 
        most expensive one-third of discretionary program within each 
        budget function account.

SEC. 302. POINT OF ORDER.

    (a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that 
appropriates funds above current levels unless such appropriation has 
been previously authorized by law.
    (b) Waiver or Suspension.--This section may be waived or suspended 
in the House of Representatives or the Senate only by the affirmative 
vote of two-thirds of the Members, duly chosen and sworn.

SEC. 303. DECENNIAL SUNSETTING.

    (a) First Decennial Census Year.--Effective on the first day of the 
fiscal year beginning in the first decennial census year after the year 
2010 and each 10 years thereafter, the spending authority described in 
section 301(a) is terminated unless such spending authority is 
reauthorized after the last date the spending authority was required to 
be reauthorized under this title.
    (b) First Decennial Census Year.--Effective on the first day of the 
fiscal year beginning in the year after the first decennial census year 
after the year 2010 and each 10 years thereafter, the spending 
authority described in section 301(b) is terminated unless such 
spending authority is reauthorized after the last date the spending 
authority was required to be reauthorized under this title.

                 Subtitle B--Legislative Line-Item Veto

SEC. 311. LEGISLATIVE LINE-ITEM VETO.

    (a) In General.--Title X of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.) is amended by 
striking all of part B (except for sections 1016 and 1013, which are 
redesignated as sections 1019 and 1020, respectively) and part C and 
inserting the following:

                  ``Part B--Legislative Line-Item Veto

                       ``line-item veto authority

    ``Sec. 1011.  (a) Proposed Cancellations.--Within 45 calendar days 
after the enactment of any bill or joint resolution providing any 
discretionary budget authority, item of direct spending, limited tariff 
benefit, or targeted tax benefit, the President may propose, in the 
manner provided in subsection (b), the cancellation of any dollar 
amount of such discretionary budget authority, item of direct spending, 
or targeted tax benefit. If the 45 calendar-day period expires during a 
period where either House of Congress stands adjourned sine die at the 
end of a Congress or for a period greater than 45 calendar days, the 
President may propose a cancellation under this section and transmit a 
special message under subsection (b) on the first calendar day of 
session following such a period of adjournment.
    ``(b) Transmittal of Special Message.--
            ``(1) Special message.--
                    ``(A) In general.--The President may transmit to 
                the Congress a special message proposing to cancel any 
                dollar amounts of discretionary budget authority, items 
                of direct spending, limited tariff benefits, or 
                targeted tax benefits.
                    ``(B) Contents of special message.--Each special 
                message shall specify, with respect to the 
                discretionary budget authority, items of direct 
                spending proposed, limited tariff benefits, or targeted 
                tax benefits to be canceled--
                            ``(i) the dollar amount of discretionary 
                        budget authority, the specific item of direct 
                        spending (that OMB, after consultation with 
                        CBO, estimates to increase budget authority or 
                        outlays as required by section 1017(9)), the 
                        limited tariff benefit, or the targeted tax 
                        benefit that the President proposes be 
                        canceled;
                            ``(ii) any account, department, or 
                        establishment of the Government to which such 
                        discretionary budget authority is available for 
                        obligation, and the specific project or 
                        governmental functions involved;
                            ``(iii) the reasons why such discretionary 
                        budget authority, item of direct spending, 
                        limited tariff benefit, or targeted tax benefit 
                        should be canceled;
                            ``(iv) to the maximum extent practicable, 
                        the estimated fiscal, economic, and budgetary 
                        effect (including the effect on outlays and 
                        receipts in each fiscal year) of the proposed 
                        cancellation;
                            ``(v) to the maximum extent practicable, 
                        all facts, circumstances, and considerations 
                        relating to or bearing upon the proposed 
                        cancellation and the decision to propose the 
                        cancellation, and the estimated effect of the 
                        proposed cancellation upon the objects, 
                        purposes, or programs for which the 
                        discretionary budget authority, item of direct 
                        spending, limited tariff benefit, or the 
                        targeted tax benefit is provided;
                            ``(vi) a numbered list of cancellations to 
                        be included in an approval bill that, if 
                        enacted, would cancel discretionary budget 
                        authority, items of direct spending, limited 
                        tariff benefit, or targeted tax benefits 
                        proposed in that special message; and
                            ``(vii) if the special message is 
                        transmitted subsequent to or at the same time 
                        as another special message, a detailed 
                        explanation why the proposed cancellations are 
                        not substantially similar to any other proposed 
                        cancellation in such other message.
                    ``(C) Duplicative proposals prohibited.--The 
                President may not propose to cancel the same or 
                substantially similar discretionary budget authority, 
                item of direct spending, limited tariff benefit, or 
                targeted tax benefit more than one time under this Act.
                    ``(D) Maximum number of special messages.--The 
                President may not transmit to the Congress more than 5 
                special messages under this subsection related to any 
                bill or joint resolution described in subsection (a), 
                but may transmit not more than 10 special messages for 
                any omnibus budget reconciliation or appropriation 
                measure.
            ``(2) Enactment of approval bill.--
                    ``(A) Deficit reduction.--Amounts of budget 
                authority, items of direct spending, limited tariff 
                benefit, or targeted tax benefits which are canceled 
                pursuant to enactment of a bill as provided under this 
                section shall be dedicated only to reducing the deficit 
                or increasing the surplus.
                    ``(B) Adjustment of levels in the concurrent 
                resolution on the budget.--Not later than 5 days after 
                the date of enactment of an approval bill as provided 
                under this section, the chairs of the Committees on the 
                Budget of the Senate and the House of Representatives 
                shall revise allocations and aggregates and other 
                appropriate levels under the appropriate concurrent 
                resolution on the budget to reflect the cancellation, 
                and the applicable committees shall report revised 
                suballocations pursuant to section 302(b), as 
                appropriate.
                    ``(C) Adjustments to statutory limits.--After 
                enactment of an approval bill as provided under this 
                section, the Office of Management and Budget shall 
                revise applicable limits under the Balanced Budget and 
                Emergency Deficit Control Act of 1985, as appropriate.
                    ``(D) Trust funds and special funds.--
                Notwithstanding subparagraph (A), nothing in this part 
                shall be construed to require or allow the deposit of 
                amounts derived from a trust fund or special fund which 
                are canceled pursuant to enactment of a bill as 
                provided under this section to any other fund.

                ``procedures for expedited consideration

    ``Sec. 1012.  (a) Expedited Consideration.--
            ``(1) In general.--The majority leader or minority leader 
        of each House or his designee shall (by request) introduce an 
        approval bill as defined in section 1017 not later than the 
        third day of session of that House after the date of receipt of 
        a special message transmitted to the Congress under section 
        1011(b). If the bill is not introduced as provided in the 
        preceding sentence in either House, then, on the fourth day of 
        session of that House after the date of receipt of the special 
        message, any Member of that House may introduce the bill.
            ``(2) Consideration in the house of representatives.--
                    ``(A) Referral and reporting.--Any committee of the 
                House of Representatives to which an approval bill is 
                referred shall report it to the House without amendment 
                not later than the seventh legislative day after the 
                date of its introduction. If a committee fails to 
                report the bill within that period or the House has 
                adopted a concurrent resolution providing for 
                adjournment sine die at the end of a Congress, such 
                committee shall be automatically discharged from 
                further consideration of the bill and it shall be 
                placed on the appropriate calendar.
                    ``(B) Proceeding to consideration.--After an 
                approval bill is reported by or discharged from 
                committee or the House has adopted a concurrent 
                resolution providing for adjournment sine die at the 
                end of a Congress, it shall be in order to move to 
                proceed to consider the approval bill in the House. 
                Such a motion shall be in order only at a time 
                designated by the Speaker in the legislative schedule 
                within two legislative days after the day on which the 
                proponent announces his intention to offer the motion. 
                Such a motion shall not be in order after the House has 
                disposed of a motion to proceed with respect to that 
                special message. 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.
                    ``(C) Consideration.--The approval bill shall be 
                considered as read. All points of order against an 
                approval bill and against its consideration are waived. 
                The previous question shall be considered as ordered on 
                an approval bill to its passage without intervening 
                motion except five hours of debate equally divided and 
                controlled by the proponent and an opponent and one 
                motion to limit debate on the bill. A motion to 
                reconsider the vote on passage of the bill shall not be 
                in order.
                    ``(D) Senate bill.--An approval bill received from 
                the Senate shall not be referred to committee.
            ``(3) Consideration in the senate.--
                    ``(A) Motion to proceed to consideration.--A motion 
                to proceed to the consideration of a bill under this 
                subsection in the Senate shall not be debatable. It 
                shall not be in order to move to reconsider the vote by 
                which the motion to proceed is agreed to or disagreed 
                to.
                    ``(B) Limits on debate.--Debate in the Senate on a 
                bill under this subsection, and all debatable motions 
                and appeals in connection therewith (including debate 
                pursuant to subparagraph (D)), shall not exceed 10 
                hours, equally divided and controlled in the usual 
                form.
                    ``(C) Appeals.--Debate in the Senate on any 
                debatable motion or appeal in connection with a bill 
                under this subsection shall be limited to not more than 
                1 hour, to be equally divided and controlled in the 
                usual form.
                    ``(D) Motion to limit debate.--A motion in the 
                Senate to further limit debate on a bill under this 
                subsection is not debatable.
                    ``(E) Motion to recommit.--A motion to recommit a 
                bill under this subsection is not in order.
                    ``(F) Consideration of the house bill.--
                            ``(i) In general.--If the Senate has 
                        received the House companion bill to the bill 
                        introduced in the Senate prior to the vote 
                        required under paragraph (1)(C), then the 
                        Senate may consider, and the vote under 
                        paragraph (1)(C) may occur on, the House 
                        companion bill.
                            ``(ii) Procedure after vote on senate 
                        bill.--If the Senate votes, pursuant to 
                        paragraph (1)(C), on the bill introduced in the 
                        Senate, then immediately following that vote, 
                        or upon receipt of the House companion bill, 
                        the House bill shall be deemed to be 
                        considered, read the third time, and the vote 
                        on passage of the Senate bill shall be 
                        considered to be the vote on the bill received 
                        from the House.
    ``(b) Amendments Prohibited.--No amendment to, or motion to strike 
a provision from, a bill considered under this section shall be in 
order in either the Senate or the House of Representatives.

                   ``presidential deferral authority

    ``Sec. 1013.  (a) Temporary Presidential Authority To Withhold 
Discretionary Budget Authority.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may direct that any dollar amount of 
        discretionary budget authority to be canceled in that special 
        message shall not be made available for obligation for a period 
        not to exceed 45 calendar days from the date the President 
        transmits the special message to the Congress.
            ``(2) Early availability.--The President shall make any 
        dollar amount of discretionary budget authority deferred 
        pursuant to paragraph (1) available at a time earlier than the 
        time specified by the President if the President determines 
        that continuation of the deferral would not further the 
        purposes of this Act.
    ``(b) Temporary Presidential Authority To Suspend Direct 
Spending.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        item of direct spending proposed to be canceled in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any item of direct spending at a time earlier 
        than the time specified by the President if the President 
        determines that continuation of the suspension would not 
        further the purposes of this Act.
    ``(c) Temporary Presidential Authority To Suspend a Limited Tariff 
Benefit.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        limited tariff benefit proposed to be canceled in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any limited tariff benefit at a time earlier 
        than the time specified by the President if the President 
        determines that continuation of the suspension would not 
        further the purposes of this Act.
    ``(d) Temporary Presidential Authority To Suspend a Targeted Tax 
Benefit.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        targeted tax benefit proposed to be repealed in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any targeted tax benefit at a time earlier 
        than the time specified by the President if the President 
        determines that continuation of the suspension would not 
        further the purposes of this Act.
    ``(e) Extension of 45-Day Period.--The President may transmit to 
the Congress not more than one supplemental special message to extend 
the period to suspend the implementation of any discretionary budget 
authority, item of direct spending, limited tariff benefit, or targeted 
tax benefit, as applicable, by an additional 45 calendar days. Any such 
supplemental message may not be transmitted to the Congress before the 
40th day of the 45-day period set forth in the preceding message or 
later than the last day of such period.

               ``identification of targeted tax benefits

    ``Sec. 1014.  (a) Statement.--The chairman of the Committee on Ways 
and Means of the House of Representatives and the chairman of the 
Committee on Finance of the Senate acting jointly (hereafter in this 
subsection referred to as the `chairmen') shall review any revenue or 
reconciliation bill or joint resolution which includes any amendment to 
the Internal Revenue Code of 1986 that is being prepared for filing by 
a committee of conference of the two Houses, and shall identify whether 
such bill or joint resolution contains any targeted tax benefits. The 
chairmen shall provide to the committee of conference a statement 
identifying any such targeted tax benefits or declaring that the bill 
or joint resolution does not contain any targeted tax benefits. Any 
such statement shall be made available to any Member of Congress by the 
chairmen immediately upon request.
    ``(b) Statement Included in Legislation.--
            ``(1) In general.--Notwithstanding any other rule of the 
        House of Representatives or any rule or precedent of the 
        Senate, any revenue or reconciliation bill or joint resolution 
        which includes any amendment to the Internal Revenue Code of 
        1986 reported by a committee of conference of the two Houses 
        may include, as a separate section of such bill or joint 
        resolution, the information contained in the statement of the 
        chairmen, but only in the manner set forth in paragraph (2).
            ``(2) Applicability.--The separate section permitted under 
        subparagraph (A) shall read as follows: `Section 1021 of the 
        Congressional Budget and Impoundment Control Act of 1974 shall 
        ______ apply to ________.', with the blank spaces being filled 
        in with--
                    ``(A) in any case in which the chairmen identify 
                targeted tax benefits in the statement required under 
                subsection (a), the word `only' in the first blank 
                space and a list of all of the specific provisions of 
                the bill or joint resolution in the second blank space; 
                or
                    ``(B) in any case in which the chairmen declare 
                that there are no targeted tax benefits in the 
                statement required under subsection (a), the word `not' 
                in the first blank space and the phrase `any provision 
                of this Act' in the second blank space.
    ``(c) Identification in Revenue Estimate.--With respect to any 
revenue or reconciliation bill or joint resolution with respect to 
which the chairmen provide a statement under subsection (a), the Joint 
Committee on Taxation shall--
            ``(1) in the case of a statement described in subsection 
        (b)(2)(A), list the targeted tax benefits in any revenue 
        estimate prepared by the Joint Committee on Taxation for any 
        conference report which accompanies such bill or joint 
        resolution, or
            ``(2) in the case of a statement described in 13 subsection 
        (b)(2)(B), indicate in such revenue estimate that no provision 
        in such bill or joint resolution has been identified as a 
        targeted tax benefit.
    ``(d) President's Authority.--If any revenue or reconciliation bill 
or joint resolution is signed into law--
            ``(1) with a separate section described in subsection 
        (b)(2), then the President may use the authority granted in 
        this section only with respect to any targeted tax benefit in 
        that law, if any, identified in such separate section; or
            ``(2) without a separate section described in subsection 
        (b)(2), then the President may use the authority granted in 
        this section with respect to any targeted tax benefit in that 
        law.

                      ``treatment of cancellations

    ``Sec. 1015.  The cancellation of any dollar amount of 
discretionary budget authority, item of direct spending, limited tariff 
benefit, or targeted tax benefit shall take effect only upon enactment 
of the applicable approval bill. If an approval bill is not enacted 
into law before the end of the applicable period under section 1013, 
then all proposed cancellations contained in that bill shall be null 
and void and any such dollar amount of discretionary budget authority, 
item of direct spending, limited tariff benefit, or targeted tax 
benefit shall be effective as of the original date provided in the law 
to which the proposed cancellations applied.

                    ``reports by comptroller general

    ``Sec. 1016.  With respect to each special message under this part, 
the Comptroller General shall issue to the Congress a report 
determining whether any discretionary budget authority is not made 
available for obligation or item of direct spending, limited tariff 
benefit, or targeted tax benefit continues to be suspended after the 
deferral authority set forth in section 1013 of the President has 
expired.

                             ``definitions

    ``Sec. 1017.  As used in this part:
            ``(1) Appropriation law.--The term `appropriation law' 
        means an Act referred to in section 105 of title 1, United 
        States Code, including any general or special appropriation 
        Act, or any Act making supplemental, deficiency, or continuing 
        appropriations, that has been signed into law pursuant to 
        Article I, section 7, of the Constitution of the United States.
            ``(2) Approval bill.--The term `approval bill' means a bill 
        or joint resolution which only approves proposed cancellations 
        of dollar amounts of discretionary budget authority, items of 
        new direct spending, limited tariff benefits, or targeted tax 
        benefits in a special message transmitted by the President 
        under this part and--
                    ``(A) the title of which is as follows: `A bill 
                approving the proposed cancellations transmitted by the 
                President on ___', the blank space being filled in with 
                the date of transmission of the relevant special 
                message and the public law number to which the message 
                relates;
                    ``(B) which does not have a preamble; and
                    ``(C) which provides only the following after the 
                enacting clause: `That the Congress approves of 
                proposed cancellations ___', the blank space being 
                filled in with a list of the cancellations contained in 
                the President's special message, `as transmitted by the 
                President in a special message on ____', the blank 
                space being filled in with the appropriate date, 
                `regarding ____.', the blank space being filled in with 
                the public law number to which the special message 
                relates;
                    ``(D) which only includes proposed cancellations 
                that are estimated by CBO to meet the definition of 
                discretionary budgetary authority or items of direct 
                spending, or limited tariff benefits, or that are 
                identified as targeted tax benefits pursuant to section 
                1014;
                    ``(E) if any proposed cancellation other than 
                discretionary budget authority or targeted tax benefits 
                is estimated by CBO to not meet the definition of item 
                of direct spending, then the approval bill shall 
                include at the end: `The President shall cease the 
                suspension of the implementation of the following under 
                section 1013 of the Impoundment Control Act of 1974: 
                _____', the blank space being filled in with the list 
                of such proposed cancellations; and
                    ``(F) if no CBO estimate is available, then the 
                entire list of legislative provisions proposed by the 
                President is inserted in the second blank space in 
                subparagraph (C).
            ``(3) Calendar day.--The term `calendar day' means a 
        standard 24-hour period beginning at midnight.
            ``(4) Cancel or cancellation.--The terms `cancel' or 
        `cancellation' means to prevent--
                    ``(A) budget authority from having legal force or 
                effect;
                    ``(B) in the case of entitlement authority, to 
                prevent the specific legal obligation of the United 
                States from having legal force or effect;
                    ``(C) in the case of the food stamp program, to 
                prevent the specific provision of law that provides 
                such benefit from having legal force or effect; or
                    ``(D) a limited tariff benefit from having legal 
                force or effect, and to make any necessary, conforming 
                statutory change to ensure that such limited tariff 
                benefit is not implemented; or
                    ``(E) a targeted tax benefit from having legal 
                force or effect, and to make any necessary, conforming 
                statutory change to ensure that such targeted tax 
                benefit is not implemented and that any budgetary 
                resources are appropriately canceled.
            ``(5) CBO.--The term `CBO' means the Director of the 
        Congressional Budget Office.
            ``(6) Direct spending.--The term `direct spending' means--
                    ``(A) budget authority provided by law (other than 
                an appropriation law);
                    ``(B) entitlement authority; and
                    ``(C) the food stamp program.
            ``(7) Dollar amount of discretionary budget authority.--(A) 
        Except as provided in subparagraph (B), the term `dollar amount 
        of discretionary budget authority' means the entire dollar 
        amount of budget authority--
                            ``(i) specified in an appropriation law, or 
                        the entire dollar amount of budget authority or 
                        obligation limitation required to be allocated 
                        by a specific proviso in an appropriation law 
                        for which a specific dollar figure was not 
                        included;
                            ``(ii) represented separately in any table, 
                        chart, or explanatory text included in the 
                        statement of managers or the governing 
                        committee report accompanying such law;
                            ``(iii) required to be allocated for a 
                        specific program, project, or activity in a law 
                        (other than an appropriation law) that mandates 
                        the expenditure of budget authority from 
                        accounts, programs, projects, or activities for 
                        which budget authority is provided in an 
                        appropriation law;
                            ``(iv) represented by the product of the 
                        estimated procurement cost and the total 
                        quantity of items specified in an appropriation 
                        law or included in the statement of managers or 
                        the governing committee report accompanying 
                        such law; or
                            ``(v) represented by the product of the 
                        estimated procurement cost and the total 
                        quantity of items required to be provided in a 
                        law (other than an appropriation law) that 
                        mandates the expenditure of budget authority 
                        from accounts, programs, projects, or 
                        activities for which budget authority is 
                        provided in an appropriation law.
                    ``(B) The term `dollar amount of discretionary 
                budget authority' does not include--
                            ``(i) direct spending;
                            ``(ii) budget authority in an appropriation 
                        law which funds direct spending provided for in 
                        other law;
                            ``(iii) any existing budget authority 
                        canceled in an appropriation law; or
                            ``(iv) any restriction, condition, or 
                        limitation in an appropriation law or the 
                        accompanying statement of managers or committee 
                        reports on the expenditure of budget authority 
                        for an account, program, project, or activity, 
                        or on activities involving such expenditure.
            ``(8) Item of direct spending.--The term `item of direct 
        spending' means any provision of law that results in an 
        increase in budget authority or outlays for direct spending 
        relative to the most recent levels calculated consistent with 
        the methodology used to calculate a baseline under section 257 
        of the Balanced Budget and Emergency Deficit Control Act of 
        1985 and included with a budget submission under section 
        1105(a) of title 31, United States Code, in the first year or 
        the 5-year period for which the item is effective. However, 
        such item does not include an extension or reauthorization of 
        existing direct spending, but instead only refers to provisions 
        of law that increase such direct spending.
            ``(9) Limited tariff benefit.--The term `limited tariff 
        benefit' means any provision of law that modifies the 
        Harmonized Tariff Schedule of the United States in a manner 
        that benefits 10 or fewer entities (as defined in paragraph 
        (12)(B)).
            ``(10) OMB.--The term `OMB' means the Director of the 
        Office of Management and Budget.
            ``(11) Omnibus reconciliation or appropriation measure.--
        The term `omnibus reconciliation or appropriation measure' 
        means--
                    ``(A) in the case of a reconciliation bill, any 
                such bill that is reported to its House by the 
                Committee on the Budget; or
                    ``(B) in the case of an appropriation measure, any 
                such measure that provides appropriations for programs, 
                projects, or activities falling within 2 or more 
                section 302(b) suballocations.
            ``(12) Targeted tax benefit.--(A) The term `targeted tax 
        benefit' means any revenue-losing provision that provides a 
        Federal tax deduction, credit, exclusion, or preference to ten 
        or fewer beneficiaries (determined with respect to either 
        present law or any provision of which the provision is a part) 
        under the Internal Revenue Code of 1986 in any year for which 
        the provision is in effect;
                    ``(B) for purposes of subparagraph (A)--
                            ``(i) all businesses and associations that 
                        are members of the same controlled group of 
                        corporations (as defined in section 1563(a) of 
                        the Internal Revenue Code of 1986) shall be 
                        treated as a single beneficiary;
                            ``(ii) all shareholders, partners, members, 
                        or beneficiaries of a corporation, partnership, 
                        association, or trust or estate, respectively, 
                        shall be treated as a single beneficiary;
                            ``(iii) all employees of an employer shall 
                        be treated as a single beneficiary;
                            ``(iv) all qualified plans of an employer 
                        shall be treated as a single beneficiary;
                            ``(v) all beneficiaries of a qualified plan 
                        shall be treated as a single beneficiary;
                            ``(vi) all contributors to a charitable 
                        organization shall be treated as a single 
                        beneficiary;
                            ``(vii) all holders of the same bond issue 
                        shall be treated as a single beneficiary; and
                            ``(viii) if a corporation, partnership, 
                        association, trust or estate is the beneficiary 
                        of a provision, the shareholders of the 
                        corporation, the partners of the partnership, 
                        the members of the association, or the 
                        beneficiaries of the trust or estate shall not 
                        also be treated as beneficiaries of such 
                        provision;
                    ``(C) for the purpose of this paragraph, the term 
                `revenue-losing provision' means any provision that is 
                estimated to result in a reduction in Federal tax 
                revenues (determined with respect to either present law 
                or any provision of which the provision is a part) for 
                any one of the two following periods--
                            ``(i) the first fiscal year for which the 
                        provision is effective; or
                            ``(ii) the period of the 5 fiscal years 
                        beginning with the first fiscal year for which 
                        the provision is effective;
                    ``(D) the term `targeted tax benefit' does not 
                include any provision which applies uniformly to an 
                entire industry; and
                    ``(E) the terms used in this paragraph shall have 
                the same meaning as those terms have generally in the 
                Internal Revenue Code of 1986, unless otherwise 
                expressly provided.

                              ``expiration

    ``Sec. 1018.  This title shall have no force or effect on or after 
October 1, 2012''.

SEC. 312. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Exercise of Rulemaking Powers.--Section 904 of the 
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended--
            (1) in subsection (a), by striking ``1017'' and inserting 
        ``1012''; and
            (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``section 1012''.
    (b) Analysis by Congressional Budget Office.--Section 402 of the 
Congressional Budget Act of 1974 is amended by inserting ``(a)'' after 
``402.'' and by adding at the end the following new subsection:
    ``(b) Upon the receipt of a special message under section 1011 
proposing to cancel any item of direct spending, the Director of the 
Congressional Budget Office shall prepare an estimate of the savings in 
budget authority or outlays resulting from such proposed cancellation 
relative to the most recent levels calculated consistent with the 
methodology used to calculate a baseline under section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 and included 
with a budget submission under section 1105(a) of title 31, United 
States Code, and transmit such estimate to the chairmen of the 
Committees on the Budget of the House of Representatives and Senate.''.
    (c) Clerical Amendments.--(1) Section 1(a) of the Congressional 
Budget and Impoundment Control Act of 1974 is amended by striking the 
last sentence.
    (2) Section 1022(c) of such Act (as redesignated) is amended is 
amended by striking ``rescinded or that is to be reserved'' and insert 
``canceled'' and by striking ``1012'' and inserting ``1011''.
    (3) Table of Contents.--The table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Control Act of 1974 is 
amended by deleting the contents for parts B and C of title X and 
inserting the following:

                  ``Part B--Legislative Line-Item Veto

``Sec. 1011. Line-item veto authority.
``Sec. 1012. Procedures for expedited consideration.
``Sec. 1013. Presidential deferral authority.
``Sec. 1014. Identification of targeted tax benefits.
``Sec. 1015. Treatment of cancellations.
``Sec. 1016. Reports by comptroller general.
``Sec. 1017. Definitions.
``Sec. 1018. Expiration.
``Sec. 1019. Suits by Comptroller General.
``Sec. 1020. Proposed deferrals of budget authority.''.
    (d) Effective Date.--The amendments made by this Act shall take 
effect on the date of its enactment and apply only to any dollar amount 
of discretionary budget authority, item of direct spending, or targeted 
tax benefit provided in an Act enacted on or after the date of 
enactment of this Act.

SEC. 313. SENSE OF CONGRESS ON ABUSE OF PROPOSED CANCELLATIONS.

    It is the sense of Congress no President or any executive branch 
official should condition the inclusion or exclusion or threaten to 
condition the inclusion or exclusion of any proposed cancellation in 
any special message under this section upon any vote cast or to be cast 
by any Member of either House of Congress.

SEC. 314. AMENDING HOUSE RULES TO REQUIRE THAT RESCISSION BILLS ALWAYS 
              BE CONSIDERED UNDER OPEN RULES.

    (a) Rules Amendment.--Clause 6(c) of rule XIII of the Rules of the 
House of Representatives is amended by striking the period and 
inserting ``; or'' at the end of subparagraph (2) and by adding at the 
end the following new subparagraph:
    ``(3) a rule or order that would limit any amendment that would 
otherwise be in order to a rescission bill.''.
    (b) Automatic Allocations Reductions.--Clause 4(b) of rule X of the 
Rules of the House of Representatives is amended by inserting ``(1)'' 
after ``(b)'', by redesignating subparagraphs (1) through (6) as 
subdivisions (A) through (F), respectively, and by adding at the end 
the following:
    ``(2)(A) Whenever a rescission bill passes the House, the Committee 
on the Budget shall immediately reduce the applicable allocations under 
section 302(a) of the Congressional Budget Act of 1974 by the total 
amount of reductions in budget authority and in outlays resulting from 
such rescission bill.
    ``(B) As used in this subparagraph, the term `rescission bill' 
means a bill or joint resolution which only rescinds, in whole or in 
part, budget authority and which includes only titles corresponding to 
the most recently enacted appropriation bills that continue to include 
unobligated balances.''.
    (c) Privileged Discharge Resolutions.--Rule XIII of the Rules of 
the House of Representatives is amended by adding at the end the 
following new clause:
    ``8. (a) By February 1, May 1, July 30, and November 11 of each 
session, the majority leader shall introduce a rescission bill. If such 
bill is not introduced by that date, then whenever a rescission bill is 
introduced during a session on or after that date, a motion to 
discharge the committee from its consideration shall be privileged 
after the 10-legislative day period beginning on that date for the 
first 5 such bills.
    ``(b) It shall not be in order to offer any amendment to a 
rescission bill except an amendment that increases the amount of budget 
authority that such bill rescinds.
    ``(c) As used in this clause and in clause 6, the term `rescission 
bill' has the meaning given such term in clause 4(b)(2)(B) of rule 
X.''.
    (d) Point of Order.--Rule XXI of the Rules of the House of 
Representatives (as amended by subsection (d)) is further amended by 
adding at the end the following new clause:
    ``9. (a) It shall not be in order to consider any rescission bill, 
or conference report thereon or amendment thereto, unless--
            ``(1) in the case of such bill or conference report 
        thereon, it is made available to Members and the general public 
        on the Internet for at least 48 hours before its consideration; 
        or
            ``(2)(A) in the case of an amendment to such rescission 
        bill made in order by a rule, it is made available to Members 
        and the general public on the Internet within one hour after 
        the rule is filed; or
            ``(B) in the case of an amendment under an open rule, it is 
        made available to Members and the general public on the 
        Internet immediately after being offered; in a format that is 
        searchable and sortable.
    ``(b) No amendment to an amendment to a rescission bill shall be in 
order unless germane to the amendment to which it is offered.''.

      Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse

SEC. 331. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established the Commission to 
Eliminate Waste, Fraud, and Abuse (hereafter in this subtitle referred 
to as the ``Commission'').
    (b) Membership.--
            (1) In general.--The Commission shall consist of 12 
        members, all of whom shall be appointed by the President not 
        later than 90 days after the date of enactment of this Act.
            (2) Chairperson and vice chairperson.--The President shall 
        designate a chairperson and vice chairperson from among the 
        members of the Commission.
    (c) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall not 
affect its powers, but shall be filled in the same manner as the 
original appointment.
    (d) Meetings.--
            (1) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Commission have been appointed, the 
        Commission shall hold its first meeting.
            (2) Subsequent meetings.--The Commission shall meet at the 
        call of the chairperson.
    (e) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.

SEC. 332. DUTIES OF THE COMMISSION.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Agency.--The term ``agency'' has the meaning given the 
        term ``Executive agency'' under section 105 of title 5, United 
        States Code.
            (2) Program.--The term ``program'' means any activity or 
        function of an agency.
    (b) In General.--The Commission shall--
            (1) evaluate all agencies and programs within those 
        agencies, using the criteria under subsection (c); and
            (2) submit to Congress--
                    (A) a plan with recommendations of the agencies and 
                programs that should be realigned or eliminated; and
                    (B) proposed legislation to implement the plan 
                described under subparagraph (A).
    (c) Criteria.--
            (1) Duplicative.--If two or more agencies or programs are 
        performing the same essential function and the function can be 
        consolidated or streamlined into a single agency or program, 
        the Commission shall recommend that the agency or program be 
        realigned.
            (2) Wasteful or inefficient.--The Commission shall 
        recommend the realignment or elimination of any agency or 
        program that has wasted Federal funds by--
                    (A) egregious spending;
                    (B) mismanagement of resources and personnel; or
                    (C) use of such funds for personal benefit or the 
                benefit of a special interest group.
            (3) Outdated, irrelevant, or failed.--The Commission shall 
        recommend the elimination of any agency or program that--
                    (A) has completed its intended purpose;
                    (B) has become irrelevant; or
                    (C) has failed to meet its objectives.
    (d) Systematic Assessment of Programs.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the President shall--
                    (A) establish a systematic method for assessing the 
                effectiveness and accountability of agency programs; 
                and
                    (B) submit, to the Commission, assessments of not 
                less than \1/2\ of all programs covered under 
                subsection (b)(1) that use the method established under 
                subparagraph (A).
            (2) Method objectives.--The method established under 
        paragraph (1) shall--
                    (A) recognize different types of Federal programs;
                    (B) assess programs based primarily on the 
                achievement of performance goals (as defined under 
                section 1115(f)(4) of title 31, United States Code); 
                and
                    (C) assess programs based in part on the adequacy 
                of the program's performance measures, financial 
                management, and other factors determined by the 
                President.
            (3) Development.--The method established under paragraph 
        (1) shall not be implemented until it has been reviewed and 
        accepted by the Commission.
            (4) Consideration of assessments.--The Commission shall 
        consider assessments submitted under this subsection when 
        evaluating programs under subsection (b)(1).
    (e) Common Performance Measures.--Not later than 1 year after the 
date of enactment of this Act, the President shall identify common 
performance measures for programs covered in subsection (b)(1) that 
have similar functions and, to the extent feasible, provide the 
Commission with data on such performance measures.
    (f) Report.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Commission shall submit to the 
        President and Congress a report that includes--
                    (A) the plan described under subsection (b)(2)(A), 
                with supporting documentation for all recommendations; 
                and
                    (B) the proposed legislation described under 
                subsection (b)(2)(B).
            (2) Relocation of federal employees.--The proposed 
        legislation under paragraph (1)(B) shall provide that if the 
        position of an employee of an agency is eliminated as a result 
        of the implementation of the plan under paragraph (1)(A), the 
        affected agency shall make reasonable efforts to relocate such 
        employee to another position within the agency or within 
        another Federal agency.

SEC. 333. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission or, at its direction, any 
subcommittee or member of the Commission, may, for the purpose of 
carrying out this subtitle--
            (1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and 
        administer such oaths as any member of the Commission considers 
        advisable;
            (2) require, by subpoena or otherwise, the attendance and 
        testimony of such witnesses as any member of the Commission 
        considers advisable; and
            (3) require, by subpoena or otherwise, the production of 
        such books, records, correspondence, memoranda, papers, 
        documents, tapes, and other evidentiary materials relating to 
        any matter under investigation by the Commission.
    (b) Subpoenas.--
            (1) Issuance.--Subpoenas issued under subsection (a) shall 
        bear the signature of the chairperson of the Commission and 
        shall be served by any person or class of persons designated by 
        the chairperson for that purpose.
            (2) Enforcement.--In the case of contumacy or failure to 
        obey a subpoena issued under subsection (a), the United States 
        district court for the judicial district in which the 
        subpoenaed person resides, is served, or may be found, may 
        issue an order requiring such person to appear at any 
        designated place to testify or to produce documentary or other 
        evidence. Any failure to obey the order of the court may be 
        punished by the court as a contempt of that court.
    (c) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out this Act. Upon request of 
the chairperson of the Commission, the head of such department or 
agency shall furnish such information to the Commission.
    (d) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Government.
    (e) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 334. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--
            (1) Non-federal members.--Except as provided under 
        subsection (b), each member of the Commission who is not an 
        officer or employee of the Government shall not be compensated.
            (2) Federal officers or employees.--All members of the 
        Commission who are officers or employees of the United States 
        shall serve without compensation in addition to that received 
        for their services as officers or employees of the United 
        States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--The chairperson of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The employment of an 
        executive director shall be subject to confirmation by the 
        Commission.
            (2) Compensation.--Upon the approval of the chairperson, 
        the executive director may fix the compensation of the 
        executive director and other personnel without regard to 
        chapter 51 and subchapter III of chapter 53 of title 5, United 
        States Code, relating to classification of positions and 
        General Schedule pay rates, except that the rate of pay for the 
        executive director and other personnel may not exceed the 
        maximum rate payable for a position at GS-15 of the General 
        Schedule under section 5332 of such title.
            (3) Personnel as federal employees.--
                    (A) In general.--The executive director and any 
                personnel of the Commission who are employees shall be 
                employees under section 2105 of title 5, United States 
                Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 
                89, and 90 of that title.
                    (B) Members of commission.--Subparagraph (A) shall 
                not be construed to apply to members of the Commission.
    (d) Detail of Government Employees.--Any Government employee may be 
detailed to the Commission without reimbursement, and such detail shall 
be without interruption or loss of civil service status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
chairperson of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.

SEC. 335. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits the report under section 232(f).

SEC. 336. CONGRESSIONAL CONSIDERATION OF REFORM PROPOSALS.

    (a) Definitions.--In this section:
            (1) Implementation bill.--The term ``implementation bill'' 
        means only a bill which is introduced as provided under 
        subsection (b), and contains the proposed legislation included 
        in the report submitted to Congress under section 232, without 
        modification.
            (2) Calendar day.--The term ``calendar day'' means a 
        calendar day other than one on which either House is not in 
        session because of an adjournment of more than 3 days to a date 
        certain.
    (b) Introduction; Referral; and Report or Discharge.--
            (1) Introduction.--On the first calendar day on which both 
        Houses are in session, on or immediately following the date on 
        which the report is submitted to Congress under section 232, a 
        single implementation bill shall be introduced (by request)--
                    (A) in the Senate by the majority leader of the 
                Senate, for himself and the minority leader of the 
                Senate, or by Members of the Senate designated by the 
                majority leader and minority leader of the Senate; and
                    (B) in the House of Representatives by the Speaker 
                of the House of Representatives, for himself and the 
                minority leader of the House of Representatives, or by 
                Members of the House of Representatives designated by 
                the Speaker and minority leader of the House of 
                Representatives.
            (2) Referral.--The implementation bills introduced under 
        paragraph (1) shall be referred to any appropriate committee of 
        jurisdiction in the Senate and any appropriate committee of 
        jurisdiction in the House of Representatives. A committee to 
        which an implementation bill is referred under this paragraph 
        may report such bill to the respective House without amendment.
            (3) Report or discharge.--If a committee to which an 
        implementation bill is referred has not reported such bill by 
        the end of the 15th calendar day after the date of the 
        introduction of such bill, such committee shall be immediately 
        discharged from further consideration of such bill, and upon 
        being reported or discharged from the committee, such bill 
        shall be placed on the appropriate calendar.
    (c) Floor Consideration.--
            (1) In general.--When the committee to which an 
        implementation bill is referred has reported, or has been 
        discharged under subsection (b)(3), it is at any time 
        thereafter in order (even though a previous motion to the same 
        effect has been disagreed to) for any Member of the respective 
        House to move to proceed to the consideration of the 
        implementation bill, and all points of order against the 
        implementation bill (and against consideration of the 
        implementation bill) are waived. The motion is highly 
        privileged in the House of Representatives and is privileged in 
        the Senate and is not debatable. The motion is not subject to 
        amendment, or to a motion to postpone, or to a motion to 
        proceed to the consideration of other business. 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 implementation bill is agreed to, the 
        implementation bill shall remain the unfinished business of the 
        respective House until disposed of.
            (2) Amendments.--An implementation bill may not be amended 
        in the Senate or the House of Representatives.
            (3) Debate.--Debate on the implementation bill, 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 those favoring and those opposing the 
        resolution. 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 implementation bill is not in order. A 
        motion to reconsider the vote by which the implementation bill 
        is agreed to or disagreed to is not in order.
            (4) Vote on final passage.--Immediately following the 
        conclusion of the debate on an implementation bill, and a 
        single quorum call at the conclusion of the debate if requested 
        in accordance with the rules of the appropriate House, the vote 
        on final passage of the implementation bill shall occur.
            (5) Rulings of the chair on procedure.--Appeals from the 
        decisions of the Chair relating to the application of the rules 
        of the Senate or the House of Representatives, as the case may 
        be, to the procedure relating to an implementation bill shall 
        be decided without debate.
    (d) Coordination With Action by Other House.--If, before the 
passage by 1 House of an implementation bill of that House, that House 
receives from the other House an implementation bill, then the 
following procedures shall apply:
            (1) Nonreferral.--The implementation bill of the other 
        House shall not be referred to a committee.
            (2) Vote on bill of other house.--With respect to an 
        implementation bill of the House receiving the implementation 
        bill--
                    (A) the procedure in that House shall be the same 
                as if no implementation bill had been received from the 
                other House; but
                    (B) the vote on final passage shall be on the 
                implementation bill of the other House.
    (e) Rules of Senate and House of Representatives.--This section is 
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 an implementation bill described in 
        subsection (a), 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.

SEC. 337. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary for carrying out this subtitle for each of the fiscal years 
2008 through 2010.

                     TITLE IV--TRUTH IN ACCOUNTING

Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal 
               Employees and Uniformed Services Personnel

SEC. 401. CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Civil Service Retirement and Disability Fund.--Chapter 83 of 
title 5, United States Code, is amended--
            (1) in section 8331--
                    (A) in paragraph (17)--
                            (i) by striking ``normal cost'' and 
                        inserting ``normal cost percentage''; and
                            (ii) by inserting ``and standards (using 
                        dynamic assumptions)'' after ``practice'';
                    (B) by amending paragraph (18) to read as follows:
            ``(18) `Fund balance' means the current net assets of the 
        Fund available for payment of benefits, as determined by the 
        Office in accordance with appropriate accounting standards, but 
        does not include any amount attributable to--
                    ``(A) the Federal Employees' Retirement System; or
                    ``(B) contributions made under the Federal 
                Employees' Retirement Contribution Temporary Adjustment 
                Act of 1983 by or on behalf of any individual who 
                became subject to the Federal Employees' Retirement 
                System;''
                    (C) by amending paragraph (19) to read as follows:
            ``(19) `accrued liability' means the estimated excess of 
        the present value of all benefits payable from the Fund to 
        employees and Members, and former employees and Members, 
        subject to this subchapter, and their survivors, over the 
        present value of deductions to be withheld from the future 
        basic pay of employees and Members currently subject to this 
        subchapter and of future agency contributions to be made in 
        their behalf;''
                    (D) in paragraph (27) by striking ``and'' at the 
                end;
                    (E) in paragraph (28) by striking the period at the 
                end and inserting a semicolon; and
                    (F) by adding at the end the following paragraphs:
            ``(29) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation; and
            ``(30) `unfunded liability' means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under this subchapter 
                based on the service of current or former employees or 
                Members, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of employees and Members currently subject 
                        to this chapter pursuant to section 8334;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 8334 with respect to employees and 
                        Members currently subject to this subchapter;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (18), as of the date the unfunded 
                        liability is determined; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Office of Personnel 
                        Management in accordance with generally 
                        accepted actuarial practices and principles.'';
            (2) in section 8334--
                    (A) in subsection (a)(1)--
                            (i) by striking the last two sentences;
                            (ii) by redesignating that subsection, as 
                        so amended, as (a)(1)(A); and
                            (iii) by adding at the end the following 
                        new subparagraphs:
    ``(B) Except as provided in subparagraph (E), each employing agency 
having any employees or Members subject to subparagraph (A) shall 
contribute from amounts available for salaries and expenses an amount 
equal to the sum of--
            ``(i) the product of--
                    ``(I) the normal cost percentage, as determined for 
                employees (other than employees covered by clause 
                (ii)), multiplied by
                    ``(II) the aggregate amount of basic pay payable by 
                the agency, for the period involved, to employees 
                (under subclause (I)) who are within such agency; and
            ``(ii) the product of--
                    ``(I) the normal cost percentage, as determined for 
                Members, Congressional employees, law enforcement 
                officers, firefighters, air traffic controllers, 
                bankruptcy judges, Court of Federal Claims judges, 
                United States magistrates, judges of the United States 
                Court of Appeals for the Armed Forces, members of the 
                Capitol Police, nuclear materials couriers, and members 
                of the Supreme Court Police, multiplied by
                    ``(II) the aggregate amount of basic pay payable by 
                the agency for the period involved, to employees and 
                Members (under subclause (I)) who are within such 
                agency.
    ``(C) In determining the normal cost percentage to be applied under 
subparagraph (B), amounts provided for under subparagraph (A) shall be 
taken into account.
    ``(D) Contributions under this paragraph shall be paid--
            ``(i) in the case of law enforcement officers, 
        firefighters, air traffic controllers, bankruptcy judges, Court 
        of Federal Claims judges, United States magistrates, judges of 
        the United States Court of Appeals for the Armed Forces, 
        members of the Supreme Court Police, nuclear materials couriers 
        and other employees, from the appropriations or fund used to 
        pay such law enforcement officers, firefighters, air traffic 
        controllers, bankruptcy judges, Court of Federal Claims judges, 
        United States magistrates, judges of the United States Court of 
        Appeals for the Armed Forces, members of the Supreme Court 
        Police, nuclear materials couriers and other employees, 
        respectively;
            ``(ii) in the case of elected officials, from an 
        appropriation or fund available for payment of other salaries 
        of the same office or establishment; and
            ``(iii) in the case of employees of the legislative branch 
        paid by the Clerk of the House of Representatives, from the 
        contingent fund of the House.
    ``(E) In the case of the United States Postal Service, the 
Metropolitan Washington Airports Authority, and the government of the 
District of Columbia, an amount equal to that withheld under 
subparagraph (A) shall be contributed from the appropriation or fund 
used to pay the employee.''; and
                    (B) in subsection (k)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A) by striking 
                                ``the first sentence of subsection 
                                (a)(1) of this section'' and inserting 
                                ``subsection (a)(1)(A)''; and
                                    (II) by amending subparagraph (B) 
                                to read as follows:
            ``(B) the amount of the contribution under subsection 
        (a)(1)(B) shall be the amount which would have been contributed 
        under such subsection if this subsection had not been 
        enacted.''; and
                            (ii) in paragraph (2)(C)(iii) by striking 
                        ``the first sentence of subsection (a)(1)'' and 
                        inserting ``subsection (a)(1)(A)''; and
            (3) in section 8348--
                    (A) by repealing subsection (f);
                    (B) by amending subsection (g) to read as follows:
    ``(g)(1)(A) Not later than June 30, 2008, the Office of the Actuary 
shall determine the unfunded liability of the Fund, as of September 30, 
2007, attributable to benefits payable under this chapter and make 
recommendations regarding its liquidation. After considering such 
recommendations, the Office shall establish an amortization schedule, 
including a series of annual installments commencing October 1, 2008, 
which provides for the liquidation of such liability by October 1, 
2046.
    ``(B) The Office shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2007, through the fiscal year ending September 30, 
2041, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2046.
    ``(C) The Office shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2041, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(D) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles, with interest computed at the rate used in the most recent 
valuation of the Civil Service Retirement System.
    ``(2) At the beginning of each fiscal year, beginning on October 1, 
2008, the Office shall notify the Secretary of the Treasury of the 
amount of the first installment under the most recent amortization 
schedule established under paragraph (1). The Secretary shall credit 
that amount to the Fund, as a Government contribution, out of any money 
in the Treasury of the United States not otherwise appropriated.
    ``(3) For the purpose of carrying out paragraph (1) with respect to 
any fiscal year, the Office may--
            ``(A) require the Board of Actuaries of the Civil Service 
        Retirement System to make actuarial determinations and 
        valuations, make recommendations, and maintain records in 
        accordance with section 8347(f); and
            ``(B) use the latest actuarial determinations and 
        valuations made by such Board of Actuaries.'';
                    (C) in subsections (h), (i), and (m) by striking 
                ``unfunded'' and inserting ``accrued'' each place it 
                appears; and
                    (D) by adding at the end the following new 
                subsection:
    ``(n) Under regulations prescribed by the Office, the head of an 
agency may request reconsideration of any amount determined to be 
payable with respect to such agency under section 8334(a)(1)(B)-(D). 
Any such request shall be referred to the Board of Actuaries of the 
Civil Service Retirement System. The Board of Actuaries shall review 
the computations of the Office and may make any adjustment with respect 
to any such amount which the Board determines appropriate. A 
determination by the Board of Actuaries under this subsection shall be 
final.''.
    (b) Government Contributions.--Section 8423 of title 5, United 
States Code, is amended--
            (1) in subsection (a)(2) by striking ``section 8422'' and 
        inserting ``section 8422(a)''; and
            (2) in subsection (b)(2) by striking ``equal annual 
        installments'' and inserting ``annual installments set in 
        accordance with generally accepted actuarial practices and 
        principles''.

SEC. 402. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM.

    (a) Section 101 of the Central Intelligence Agency Retirement Act 
(50 U.S.C. 2001) is amended--
            (1) in paragraph (5), to read as follows:
            ``(5) Unfunded liability.--The term `unfunded liability' 
        means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under title II of this 
                Act based on the service of current or former 
                participants, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of participants currently subject to title 
                        II of this Act pursuant to section 211;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 211 with respect to participants 
                        currently subject to title II of this Act;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (4), as of the date the unfunded 
                        liability is determined; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Director in accordance with 
                        generally accepted actuarial practices and 
                        principles.'';
            (2) in paragraph (6)--
                    (A) by striking ```normal cost''' and inserting 
                ```normal cost percentage'''; and
                    (B) by inserting ``and standards (using dynamic 
                assumptions)'' after ``practice''; and
            (3) by adding at the end the following paragraph:
            ``(10) Dynamic assumptions.--The term `dynamic assumptions' 
        means economic assumptions that are used in determining 
        actuarial costs and liabilities of a retirement system and in 
        anticipating the effects of long-term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.''.
    (b) Section 202 of such Act (50 U.S.C. 2012) is amended by adding 
at the end the following: ``The Fund is appropriated for the payment of 
benefits as provided by this title.''.
    (c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is amended 
to read as follows:
            ``(2) Agency contributions.--The Agency shall contribute to 
        the Fund the amount computed in a manner similar to that used 
        under section 8334(a) of title 5, United States Code, pursuant 
        to determinations of the normal cost percentage of the Central 
        Intelligence Agency Retirement and Disability System by the 
        Director. Contributions under this paragraph shall be paid from 
        amounts available for salaries and expenses.''.
    (d) Section 261 of such Act (50 U.S.C. 2091) is amended--
            (1) by striking subsections (c), (d), and (e); and
            (2) by inserting after subsection (b) the following new 
        subsections:
    ``(c)(1) Not later than June 30, 2008, the Director shall cause to 
be made actuarial valuations of the Fund that determine the unfunded 
liability of the Fund, as of September 30, 2007, attributable to 
benefits payable under this title and make recommendations regarding 
its liquidation. After considering such recommendations, the Director 
shall establish an amortization schedule, including a series of annual 
installments commencing October 1, 2008, which provides for the 
liquidation of such liability by October 1, 2046.
    ``(2) The Director shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2007, through the fiscal year ending September 30, 
2041, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2046.
    ``(3) The Director shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2041, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(4) Amortization schedules established under this subsection 
shall be set in accordance with generally accepted actuarial practices 
and principles, with interest computed at the rate used in the most 
recent valuation of the Civil Service Retirement and Disability System.
    ``(d) At the beginning of each fiscal year, beginning on October 1, 
2008, the Director shall notify the Secretary of the Treasury of the 
amount of the first installment under the most recent amortization 
schedule established under subsection (c). The Secretary shall credit 
that amount to the Fund, as a Government contribution, out of any money 
in the Treasury of the United States not otherwise appropriated. For 
the purposes of Section 504 of the National Security Act of 1947, this 
amount shall be considered authorized.''.
    (e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is amended by 
adding at the end the following new section:

``SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EMPLOYEES DESIGNATED 
              UNDER SECTION 302.

    ``(a) In addition to other government contributions required by 
law, the Agency shall contribute to the Civil Service Retirement and 
Disability fund (hereinafter in this section referred to as the `Fund') 
amounts calculated in accordance with section 8423 of title 5, United 
States Code, based on the projected number of employees to be 
designated pursuant to section 302 of this Act. In addition, the 
Agency, in a manner similar to that established for employee 
contributions to the Fund by section 8422 of title 5, United States 
Code, will contribute an amount equal to the difference between that 
which would be contributed by the number of employees projected to be 
designated under section 302 and the amounts that are actually being 
deducted and contributed from the basic pay of an equal number of 
employees pursuant to section 8422. The amounts of the Agency's 
contributions under this subsection shall be determined by the Director 
of the Office of Personnel Management, in consultation with the 
Director, and shall be paid by the Agency from funds available for 
salaries and expenses. Agency employees designated pursuant to section 
302 of this Act shall, commencing with such designation, have deducted 
from their basic pay the full amount required by section 8422 of title 
5, United States Code, and such deductions shall be contributed to the 
Fund.
    ``(b)(1) The Director of the Office of Personnel Management, in 
consultation with the Director, shall determine the total amount of 
unpaid contributions (government and employee contributions) and 
interest attributable to the number of individuals employed with the 
Agency on September 30, 2008, who are projected to be designated under 
section 302 of this Act, but are not yet designated under that section 
as of that date. The amount shall be referred to as the section 302 
unfunded liability.
    ``(2) Not later than June 30, 2009, the Director of the Office of 
Personnel Management, in consultation with the Director, shall 
establish an amortization schedule, setting forth a series of annual 
installments commencing September 30, 2009, which provides for the 
liquidation of the section 302 unfunded liability by September 30, 
2016.
    ``(3) At the end of each fiscal year, beginning on September 30, 
2009, the Director shall notify the Secretary of the Treasury of the 
amount of the annual installment under the amortization schedule 
established under paragraph (2) of this subsection. Before closing the 
accounts for that fiscal year, the Secretary shall credit that amount 
to the Fund, out of any money in the Treasury of the United States not 
otherwise appropriated.
    ``(c) Amounts paid by the Agency pursuant to this section are 
deemed to be specifically authorized by the Congress for the purposes 
of section 504 of the National Security Act of 1947.''.
    (2) The table of contents of such Act is amended by inserting after 
the item relating to section 307 the following new item:

``Sec. 308. Full funding of retiree costs for employees designated 
                            under section 302.''.

SEC. 403. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.

    (a) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 804 (22 U.S.C. 4044)--
            (1) by amending paragraph (5) to read as follows:
            ``(5) `normal cost percentage' means the entry-age normal 
        cost computed in accordance with generally accepted actuarial 
        practice and standards (using dynamic assumptions) and 
        expressed as a level percentage of aggregate basic pay.'';
            (2) by amending paragraph (14) to read as follows:
            ``(14) `unfunded liability' means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under this part based on 
                the service of current or former participants, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of participants currently subject to this 
                        part pursuant to section 805;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 805 with respect to participants 
                        currently subject to this part;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (7), as of the date the unfunded 
                        liability is determined, excluding any amount 
                        attributable to the Foreign Service Pension 
                        System, or contributions made under the Federal 
                        Employees' Retirement Contribution Temporary 
                        Adjustment Act of 1983 by or on behalf of any 
                        individual who became subject to the Foreign 
                        Service Pension System; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Secretary of the Treasury in 
                        accordance with generally accepted actuarial 
                        practices and principles.''; and
            (3)(A) by striking the period at the end of paragraph (15) 
        and inserting ``; and''; and
            (B) by adding at the end the following new paragraph:
            ``(16) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.''.
    (b) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 852 (22 U.S.C. 4071a)--
            (1) in paragraph (4)--
                    (A) by striking ``normal cost'' and inserting 
                ``normal cost percentage''; and
                    (B) by striking ``by the Secretary of State'';
            (2) in paragraph (7)--
                    (A) by striking ``supplemental'' and inserting 
                ``unfunded'';
                    (B) in subparagraph (B)(i) by striking ``(I)'' and 
                ``and (II) contributions for past civilian and military 
                service''; and
                    (C) in subparagraph (B)(ii) by inserting before the 
                semicolon ``with respect to participants currently 
                subject to this part''; and
            (3)(A) at the end of paragraph (8) by striking ``and'';
            (B) at the end of paragraph (9) by striking the period and 
        inserting ``; and''; and
            (C) by adding at the end the following new paragraph:
            ``(10) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.''.
    (c) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 805(a)(1) (22 U.S.C. 4045(a)(i))--
            (1) by striking the second sentence;
            (2) (by redesignating that subsection, as so amended, as 
        (a)(1)(A);
            (3) by redesignating the last sentence of that subsection, 
        as so amended as (a)(1)(C);
            (4) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Each employing agency having participants 
                shall contribute to the Fund the amount computed in a 
                manner similar to that used under section 8334(a) of 
                title 5, United States Code, pursuant to determinations 
                of the normal cost percentage of the Foreign Service 
                Retirement and Disability System. Contributions under 
                this subparagraph shall be paid from the appropriations 
                or fund used for payment of the salary of the 
                participant.'';
            (5) in subsection (a)(2)(A) by striking ``An equal amount 
        shall be contributed by the Department'' and inserting in its 
        place ``Each employing agency having participants shall 
        contribute to the Fund the amount computed in a manner similar 
        to that used under section 8334(a) of title 5, United States 
        Code, pursuant to determinations of the normal cost percentage 
        of the Foreign Service Retirement and Disability System''; and
            (6) in subsection (a)(2)(B) by striking ``An equal amount 
        shall be contributed by the Department'' and inserting in its 
        place ``Each employing agency having participants shall 
        contribute to the Fund from amounts available for salaries and 
        expenses the amount computed in a manner similar to that used 
        under section 8334(a) of title 5, United States Code, pursuant 
        to determinations of the normal cost percentage of the Foreign 
        Service Retirement and Disability System''.
    (d) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended by repealing sections 821 and 822 (22 U.S.C. 4061 and 
4062) and by adding the following new section:
``Sec. 821 Unfunded liability
    ``(a)(1) Not later than June 30, 2008, the Secretary of State shall 
cause to be made actuarial valuations of the Fund that determine the 
unfunded liability of the Fund, as of September 30, 2007, attributable 
to benefits payable under this subchapter and make recommendations 
regarding its liquidation. After considering such recommendations, the 
Secretary of State shall establish an amortization schedule, including 
a series of annual installments commencing October 1, 2007, which 
provides for the liquidation of such liability by October 1, 2046.
    ``(2) The Secretary of State shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year, for each 
fiscal year beginning after September 30, 2007, through the fiscal year 
ending September 30, 2041, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability by October 1, 2046.
    ``(3) The Secretary of State shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year for each 
fiscal year beginning after September 30, 2041, and shall establish a 
new amortization schedule, including a series of annual installments 
commencing on October 1 of the second subsequent fiscal year, which 
provides for the liquidation of such liability over five years.
    ``(4) Amortization schedules established under this subsection 
shall be set in accordance with generally accepted actuarial practices 
and principles, with interest computed at the rate used in the most 
recent valuation of the Foreign Service Retirement and Disability 
System.
    ``(b) At the beginning of each fiscal year, beginning on October 1, 
2008, the Secretary of State shall notify the Secretary of the Treasury 
of the amount of the first installment under the most recent 
amortization schedule established under paragraph (1). The Secretary of 
the Treasury shall credit that amount to the Fund, as a Government 
contribution, out of any money in the Treasury of the United States not 
otherwise appropriated.''.
    (e) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by 
striking ``equal annual installments'' and inserting ``annual 
installments set in accordance with generally accepted actuarial 
practices and principles''.
    (f) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 859 (22 U.S.C. 4071h) by adding 
``percentage'' after ``normal cost''.
    (g) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 802 (22 U.S.C. 4042) by adding at the end 
the following: ``The Fund is appropriated for the payment of benefits 
as provided by this subchapter.''.
    (h) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 818 (22 U.S.C. 4058) by striking ``System'' 
and inserting ``Systems under this subchapter''.

SEC. 404. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM.

    (a) In General.--Title II of the Public Health Service Act (42 
U.S.C. 202 et seq.) is amended by adding at the end the following new 
part:

  ``Part C--Public Health Service Commissioned Corps Retirement System

                  ``establishment and purpose of fund

    ``Sec. 251.  There is established on the books of the Treasury a 
fund to be known as the Public Health Service Commissioned Corps 
Retirement Fund (hereinafter in this part referred to as the `Fund'), 
which shall be administered by the Secretary. The Fund shall be used 
for the accumulation of funds in order to finance on an actuarially 
sound basis liabilities of the Department of Health and Human Services 
for benefits payable on account of retirement, disability, or death to 
commissioned officers of the Public Health Service and to their 
survivors pursuant to part A of this title.

                          ``assets of the fund

    ``Sec. 252.  There shall be deposited into the Fund the following, 
which shall constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under section 255.
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        404(c) of the Family Budget Protection Act of 2007.

                        ``payment from the fund

    ``Sec. 253.  There shall be paid from the Fund benefits payable on 
account of retirement, disability, or death to commissioned officers of 
the Public Health Service and to their survivors pursuant to part A of 
this title.

              ``determination of contributions to the fund

    ``Sec. 254.  (a)(1) Not later than June 30, 2008, the Secretary 
shall determine the unfunded liability of the Fund attributable to 
service performed as of September 30, 2007, which is `active service' 
for the purpose of section 212. The Secretary shall establish an 
amortization schedule, including a series of annual installments 
commencing October 1, 2008, which provides for the liquidation of such 
liability by October 1, 2046.
    ``(2) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2007, through the fiscal year ending September 30, 
2041, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2046.
    ``(3) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2041, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over 5 years.
    ``(b) The Secretary shall determine each fiscal year, in sufficient 
time for inclusion in the budget request for the following fiscal year, 
the total amount of Department of Health and Human Services 
contributions to be made to the Fund during the fiscal year under 
section 255(a). That amount shall be the sum of--
            ``(1) the product of--
                    ``(A) the current estimate of the value of the 
                single level percentage of basic pay to be determined 
                under subsection (c)(1) at the time of the most recent 
                actuarial valuation under subsection (c); and
                    ``(B) the total amount of basic pay expected to be 
                paid during that fiscal year to commissioned officers 
                of the Public Health Service on active duty (other than 
                active duty for training); and
            ``(2) the product of--
                    ``(A) the current estimate of the value of the 
                single level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) to be determined under subsection 
                (c)(2) at the time of the most recent actuarial 
                valuation under subsection (c); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) expected to be paid during the 
                fiscal year to commissioned officers of the Reserve 
                Corps of the Public Health Service (other than officers 
                on full-time duty other than for training) who are not 
                otherwise described in subparagraph (A).
    ``(c) Not less often than every four years thereafter (or by the 
fiscal year end prior to the effective date of any statutory change 
affecting benefits payable on account of retirement, disability, or 
death to commissioned officers or their survivors), the Secretary shall 
carry out an actuarial valuation of benefits payable on account of 
retirement, disability, or death to commissioned officers of the Public 
Health Service and to their survivors pursuant to part A of this title. 
Each such actuarial valuation shall be signed by an enrolled Actuary 
and shall include--
            ``(1) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay for 
        commissioned officers of the Public Health Service on active 
        duty (other than active duty for training); and
            ``(2) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay and of 
        compensation (paid pursuant to section 206 of title 37, United 
        States Code) of commissioned officers of the Reserve Corps of 
        the Public Health Service (other than officers on full time 
        duty other than for training) who are not otherwise described 
        in paragraph (1).
    ``(d) All determinations under this section shall be in accordance 
with generally accepted actuarial principles and practices and, where 
appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(e) The Secretary shall provide for the keeping of such records 
as are necessary for determining the actuarial status of the Fund.

                        ``payments into the fund

    ``Sec. 255.  (a) From amounts available to the Department of Health 
and Human Services for salaries and expenses, the Secretary shall pay 
into the Fund at the end of each month the amount that is the sum of--
            ``(1) the product of--
                    ``(A) the level percentage of basic pay determined 
                using all the methods and assumptions approved for the 
                most recent (as of the first day of the current fiscal 
                year) actuarial valuation under sections 254(c)(1) 
                (except that any statutory change affecting benefits 
                payable on account of retirement, disability, or death 
                to commissioned officers or their survivors that is 
                effective after the date of that valuation and on or 
                before the first day of the current fiscal year shall 
                be used in such determination); and
                    ``(B) the total amount of basic pay accrued for 
                that month by commissioned officers of the Public 
                Health Service on active duty (other than active duty 
                for training); and
            ``(2) the product of--
                    ``(A) the level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) determined using all the methods 
                and assumptions approved for the most recent (as of the 
                first day of the current fiscal year) actuarial 
                valuation under section 254(c)(2) (except that any 
                statutory change affecting benefits payable on account 
                of retirement, disability, or death to commissioned 
                officers or their survivors that is effective after the 
                date of that valuation and on or before the first day 
                of the current fiscal year shall be used in such 
                determinations); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) accrued for that month by 
                commissioned officers of the Reserve Corps of the 
                Public Health Service (other than officers on full-time 
                duty other than for training).
    ``(b) At the beginning of each fiscal year, beginning on October 1, 
2008, the Secretary shall certify to the Secretary of the Treasury the 
amount of the first installment under the most recent amortization 
schedule established under section 254(a). The Secretary of the 
Treasury shall pay into the Fund from the General Fund of the Treasury 
the amount so certified. Such payment shall be the contribution to the 
Fund for that fiscal year.

                    ``investments of assets of fund

    ``Sec. 256.  The Secretary may request the Secretary of the 
Treasury to invest such portion of the Fund as is not, in the judgment 
of the Secretary, required to meet the current needs of the Fund. Such 
investments shall be made by the Secretary of the Treasury in public 
debt securities with maturities suitable to the needs of the Fund, as 
determined by the Secretary, and bearing interest at rates determined 
by the Secretary of the Treasury, taking into consideration current 
market yields on outstanding marketable obligations of the United 
States of comparable maturities. The income on such investments shall 
be credited to and form a part of the Fund.

                    ``implementation year exceptions

    ``Sec. 257.  (a) To avoid funding shortfalls in the first year 
should formal actuarial determinations not be available in time for 
budget preparation, the amounts used in the first year in sections 
255(a)(1)(A) and 255(a)(2)(A) shall be set equal to those estimates in 
sections 254(b)(1)(A) and 254(b)(2)(A) if final determinations are not 
available. The original unfunded liability as defined in section 254(a) 
shall include an adjustment to correct for this difference between the 
formal actuarial determinations and the estimates in sections 
254(b)(1)(A) and 254(b)(2)(A).''.
    (b) Conforming Amendments.--
            (1) Condition of detail.--Section 214 of the Public Health 
        Service Act (42 U.S.C. 215) is amended by adding at the end the 
        following new subsection:
    ``(e) The Secretary shall condition any detail under subsection 
(a), (b), or (c) upon the agreement of the executive department, State, 
subdivision, Committee of the Congress, or institution concerned to pay 
to the Department of Health and Human Services, in advance or by way of 
reimbursement, for the full cost of the detail including that portion 
of the contributions under section 255(a) that is attributable to the 
detailed personnel.''.
            (2) Sequestration rule.--Section 256(f) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
        906(f)) is amended--
                    (A) by inserting after the item relating to 
                ``payment to the foreign service retirement and 
                disability fund'' the following item: ``Payment to the 
                Public Health Service Commissioned Corps Retirement 
                Fund (75-0380-0-1-551);''; and
                    (B) by inserting after the item relating to the 
                ``Pensions for former Presidents'' the following item: 
                ``Public Health Service Commissioned Corps Retirement 
                Fund (75-8274-0-7-602);''.
    (c) Transfer of Appropriations.--There shall be transferred on 
October 1, 2009, into the fund established under section 251 of the 
Public Health Service Act, as added by subsection (a), any obligated or 
unobligated balances of appropriations made to the Department of Health 
and Human Services that are currently available for benefits payable on 
account of retirement, disability, or death to commissioned officers of 
the Public Health Service and to their survivors pursuant to part A of 
title II of the Public Health Service Act, and amounts so transferred 
shall be part of the assets of the Fund.

SEC. 405. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION COMMISSIONED 
              OFFICER CORPS RETIREMENT SYSTEM.

    (a) In General.--The National Oceanic and Atmospheric 
Administration Commissioned Officer Corps Act of 2002 (title II of 
Public Law 107-372) is amended by inserting after section 246 (33 
U.S.C. 3046) the following new section:

``SEC. 246A.

    ``(a) Establishment and Purpose of NOAA Commissioned Officer Corps 
Retirement Fund.--(1) There is established on the books of the Treasury 
a fund to be known as the National Oceanic and Atmospheric 
Administration Commissioned Officer Corps Retirement Fund (hereinafter 
in this section referred to as the `Fund'), which shall be administered 
by the Secretary. The Fund shall be used for the accumulation of funds 
in order to finance on an actuarially sound basis liabilities of the 
Department of Commerce under military retirement and survivor benefit 
programs for the commissioned officers corps.
    ``(2) The term `military retirement and survivor benefit program' 
means--
            ``(A) the provisions of this title and title 10, United 
        States Code, creating entitlement to, or determining, the 
        amount of retired pay;
            ``(B) the programs under the jurisdiction of the Department 
        of Defense providing annuities for survivors and members and 
        former members of the Armed Forces, including chapter 73 of 
        title 10, section 4 of Public Law 92-425, and section 5 of 
        Public Law 96-202, as made applicable to the commissioned 
        officer corps by section 261.
    ``(b) Assets of the Fund.--There shall be deposited into the Fund 
the following, which shall constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under subsection (e).
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        405(c) of the Family Budget Protection Act of 2007.
    ``(c) Payments From the Fund.--There shall be paid from the Fund 
benefits payable on account of military retirement and survivor benefit 
programs to commissioned officers of the commissioned officer corps and 
their survivors.
    ``(d) Determination of Contributions to the Fund.--(1)(A) Not later 
than June 30, 2007, the Secretary shall determine the unfunded 
liability of the Fund attributable to service performed as of September 
30, 2007, which is `active service' for the purpose of this title. The 
Secretary shall establish an amortization schedule, including a series 
of annual installments commencing October 1, 2008, which provides for 
the liquidation of such liability by October 1, 2046.
    ``(B) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2007, through the fiscal year ending September 30, 
2041, and shall establish a new amortization schedule, including a 
series of annual installments commencing on September 30 of the 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2046.
    ``(C) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2041, and shall establish a new authorization 
schedule, including series of annual installments commencing on October 
1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over 5 years.
    ``(2) The Secretary shall determine each fiscal year, in sufficient 
time for inclusion in the budget request for the following fiscal year, 
the total amount of Department of Commerce contributions to be made to 
the Fund during that fiscal year under (e). The amount shall be the 
product of--
            ``(A) the current estimate of the value of the single level 
        percentage of basic pay to be determined under subsection (e) 
        at the time of the most recent actuarial valuation under 
        paragraph (3); and
            ``(B) the total amount of basic pay expected to be paid 
        during that fiscal year to commissioned officers of NOAA on 
        active duty.
    ``(3) Not less often then every four years (or by the fiscal year 
end before the effective date of any statutory change affecting 
benefits payable on account of retirement, disability, or death to 
commissioned officers or their survivors), the Secretary shall carry 
out an actuarial valuation of benefits payable on account of military 
retirement and survivor benefit programs to commissioned officers of 
the Administration and to their survivors. Each such actuarial 
valuation shall be signed by an enrolled Actuary and shall include a 
determination (using the aggregate entry-age normal cost method) of a 
single level percentage of basic pay for commissioned officers on 
active duty.
    ``(4) All determinations under this section shall be in accordance 
with generally accepted actuarial principles and practices, and, where 
appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(5) The Secretary shall provide for the keeping of such records 
as are necessary for determining the actuarial status of the Fund.
    ``(e) Payments Into the Fund.--(1) From amounts appropriated to the 
National Oceanic Atmospheric Administration for salaries and expenses, 
the Secretary shall pay into the Fund at the end of each month the 
amount that is the product of--
            ``(A) the level percentage of basic pay determined using 
        all the methods and assumptions approved for the most recent 
        (as of the first day of the current fiscal year) actuarial 
        valuation under subsection (d) (except that any statutory 
        change affecting benefits payable on account of military 
        retirement and survivor benefit programs to commissioned 
        officers of the Administration and to their survivors that is 
        effective date after the date of that valuation and on or 
        before the first day of the current fiscal year shall be used 
        in such determination); and
            ``(B) the total amount of basic pay accrued for that month 
        by commissioned officers on active duty.
    ``(2)(A) At the beginning of each fiscal year, the Secretary shall 
determine the sum of--
            ``(i) the amount of the payment for that year under the 
        amortization of the original unfunded liability of the Fund;
            ``(ii) the amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary for the amortization of any cumulative actuarial 
        gain or loss to the Fund, resulting from changes in benefits; 
        and
            ``(iii) the amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary for the amortization or any cumulative actuarial 
        gain or loss to the Fund resulting from changes in actuarial 
        assumptions and from experience different from the assumed 
        since the last valuation.
The Secretary shall promptly certify the amount of the sum to the 
Secretary of the Treasury.
    ``(B) Upon receiving the certification pursuant to paragraph (1), 
the Secretary of the Treasury shall promptly pay into the Fund from the 
General Fund of the Treasury the amount so certified. Such payment 
shall be the contribution to the Fund for that fiscal year.
    ``(f) Investment of Assets of the Fund.--The Secretary may request 
the Secretary of the Treasury to invest such portion of the Fund as is 
not, in the judgment of the Secretary, required to meet the current 
needs of the Fund. Such investments shall be made by the Secretary of 
the Treasury in public debt securities with maturities suitable to the 
needs of the Fund, as determined by the Secretary, and bearing interest 
at rates determined by the Secretary of the Treasury, taking into 
consideration current market yields on outstanding marketable 
obligations of the United States of comparable maturities. The income 
of such investments shall be credited to and form a part of the Fund.
    ``(g) Implementation Year Exceptions.--(1) To avoid funding 
shortfalls in the first year should formal actuarial determinations not 
be available in time for budget preparation, the amounts used in the 
first year in subsection (e)(1)(A) shall be set equal to the estimate 
in subsection (d)(2)(A) if final determinations are not available. The 
original unfunded liability as determined in subsection (d)(1) shall 
include an adjustment to correct for this difference between the formal 
actuarial determinations and the estimates in subsection (d)(2)(A).''.
    (b) Sequestration Rule.--Section 256(f) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 906(f)) is amended by 
striking ``National Oceanic and Atmospheric Administration retirement 
(13-1450-0-1-306);'' and inserting ``National Oceanic and Atmospheric 
Administration Commissioned Officer Corps Retirement Fund;''.
    (c) Transfer of Appropriations.--There shall be transferred on 
October 1, 2009, into the fund established under section 246A(a) of the 
National Oceanic and Atmospheric Administration Commissioned Officer 
Corps Act of 2002 (title II of Public Law 107-372, as added by 
subsection (a)), any obligated and unobligated balance of 
appropriations made to the Department of Commerce that are available as 
of the date of the enactment of this Act for benefits payable on 
account of military retirement and survivor benefit programs to 
commissioned officers of the NOAA Commissioned Officer Corps and to 
their survivors, and amounts so transferred shall be part of the assets 
of the Fund, effective October 1, 2009.
    (d) Effective Date.--Subsection (c) (relating to payments from the 
Fund) and (e) (relating to payments into the Fund) of section 246A of 
the National Oceanic and Atmospheric Administration Commissioned 
Officer Corps Act of 2002 (title II of Public Law 107-372, as added by 
subsection (a)), shall take effect on October 1, 2007.

SEC. 406. COAST GUARD MILITARY RETIREMENT SYSTEM.

    (a) Accrual Funding for Coast Guard Retirement.--
            (1) In general.--Chapter 11 of title 14, United States 
        Code, is amended by adding at the end the following new 
        subchapter:

          ``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND

``Sec. 441. Establishment and purpose of Fund; definitions
    ``(a) Establishment of Fund; Purpose.--There is established on the 
books of the Treasury a fund to be known as the Coast Guard Military 
Retirement Fund (hereinafter in this subchapter referred to as the 
`Fund'), which shall be administered by the Secretary. The Fund shall 
be used for the accumulations of funds in order to finance on an 
actuarially sound basis liabilities of the Coast Guard under military 
retirement and survivor benefit programs.
    ``(b) Military Retirement and Survivor Benefit Programs Defined.--
In this subchapter, the term `military retirement and survivor benefit 
programs' means--
            ``(1) the provisions of this title and title 10 creating 
        entitlement to, or determining the amount of, retired pay;
            ``(2) the programs providing annuities for survivors of 
        members and former members of the armed forces, including 
        chapter 73 of title 10, section 4 of Public Law 92-425, and 
        section 5 of Public Law 96-402; and
            ``(3) the authority provided in section 1048(h) of title 
        10.
    ``(c) Secretary Defined.--In this subchapter, the term `Secretary' 
means the Secretary of Homeland Security when the Coast Guard is not 
operating as a service in the Navy and the Secretary of Defense when 
the Coast Guard is operating as a service in the Navy.
``Sec. 442. Assets of the Fund
    ``There shall be deposited into the Fund the following, which shall 
constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under section 445 of this 
        title.
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        406(d) of the Family Budget Protection Act of 2007.
``Sec. 443. Payments from the Fund
    ``(a) In General.--There shall be paid from the Fund the following:
            ``(1) Retired pay payable to persons on the retired list of 
        the Coast Guard.
            ``(2) Retired pay payable under chapter 1223 of title 10 to 
        former members of the Coast Guard and the former United States 
        Lighthouse Service.
            ``(3) Benefits payable under programs that provide 
        annuities for survivors of members and former members of the 
        armed forces, including chapter 73 of title 10, section 4 of 
        Public Law 92-425, and section 5 of Public Law 96-402.
            ``(4) Amounts payable under section 1048(h) of title 10.
    ``(b) Availability of Assets of the Fund.--The assets of the Fund 
are hereby made available for payments under subsection (a).
``Sec. 444. Determination of contributions to the Fund
    ``(a) Initial Unfunded Liability.--(1) Not later than June 30, 
2008, the Secretary shall determine the unfunded liability of the Fund 
attributable to service performed as of September 30, 2007, which is 
`active service' for the purposes of section 212. The Secretary shall 
establish an amortization schedule, including a series of annual 
installments commencing October 1, 2008, which provides for the 
liquidation of such liability by October 1, 2046.
    ``(2) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each beginning after 
September 30, 2007, through the fiscal year ending September 30, 2041, 
and shall establish a new amortization schedule, including a series of 
annual installments commencing on October 1 of the second subsequent 
fiscal year, which provides for the liquidation of such liability by 
October 1, 2046.
    ``(3) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2041, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(b) Annual Contributions for Current Services.--(1) The Secretary 
shall determine each fiscal year, in sufficient time for inclusion in 
the budget request for the following fiscal year, the total amount of 
Department of Homeland Security, or Department of Defense, 
contributions to be made to the Fund during that fiscal year under 
section 445(a) of this title. That amount shall be the sum of the 
following:
            ``(A) The product of--
                    ``(i) the current estimate of the value of the 
                single level percentage of basic pay to be determined 
                under subsection (c)(1)(A) at the time of the most 
                recent actuarial valuation under subsection (c); and
                    ``(ii) the total amount of basic pay expected to be 
                paid during that fiscal year to members of the Coast 
                Guard on active duty (other than active duty for 
                training).
            ``(B) The product of--
                    ``(i) the current estimate of the value of the 
                single level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37) 
                to be determined under subsection (c)(1)(B) at the time 
                of the most recent actuarial valuation under subsection 
                (c); and
                    ``(ii) the total amount of basic pay and 
                compensation (paid pursuant to section 206 of title 37) 
                expected to be paid during that fiscal year to members 
                of the Coast Guard Ready Reserve (other than members on 
                full-time Reserve duty other than for training) who are 
                not otherwise described in subparagraph (A)(ii).
    ``(2) The amount determined under paragraph (1) for any fiscal year 
is the amount needed to be appropriated to the Department of Homeland 
Security for that fiscal year for payments to be made to the Fund 
during that year under section 445(a) of this title. The President 
shall include not less than the full amount so determined in the budget 
transmitted to Congress for that fiscal year under section 1105 of 
title 31. The President may comment and make recommendations concerning 
any such amount.
    ``(c) Periodic Actuarial Valuations.--(1) Not less often than every 
four years (or before the effective date of any statutory change 
affecting benefits payable on account of retirement, disability, or 
death to members of the Coast Guard or their survivors), the Secretary 
shall carry out an actuarial valuation of the Coast Guard military 
retirement and survivor benefit programs. Each actuarial valuation of 
such programs shall be signed by an enrolled actuary and shall 
include--
            ``(A) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay for 
        members of the Coast Guard on active duty (other than active 
        duty for training); and
            ``(B) a determination (using the aggregate entry-age normal 
        cost method) of single level percentage of basic pay and of 
        compensation (paid pursuant to section 206 of title 37) for 
        members of the Ready Reserve of the Coast Guard (other than 
        members on full-time Reserve duty other than for training) who 
        are not otherwise described in subparagraph (A).
    ``(2) Such single level percentages shall be used for the purposes 
of subsection (b) and section 445(a) of this title.
    ``(d) Use of Generally Accepted Actuarial Principles and 
Practices.--All determinations under this section shall be in 
accordance with generally accepted actuarial principles and practices 
and, where appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(e) Records.--The Secretary shall provide for the keeping of such 
records as are necessary for determining the actuarial status of the 
Fund.
``Sec. 445. Payments into the Fund
    ``(a) Monthly Accrual Charge for Current Services.--From amounts 
appropriated to the Coast Guard for salaries and expenses, the 
Secretary shall pay into the Fund at the end of each month as the 
Department of Homeland Security, or Department of Defense, contribution 
to the Fund for that month the amount that is the sum of the following:
            ``(1) The product of--
                    ``(A) the level percentage of basic pay determined 
                using all the methods and assumptions approved for the 
                most recent (as of the first day of the current fiscal 
                year) actuarial valuation under section 444(c)(1)(A) of 
                this title (except that any statutory change in the 
                military retirement and survivor benefit systems that 
                is effective after the date of that valuation and on or 
                before the first day of the current fiscal year shall 
                be used in such determination); and
                    ``(B) the total amount of basic pay accrued for 
                that month by members of the Coast Guard on active duty 
                (other than active duty for training).
            ``(2) The product of--
                    ``(A) the level percentage of basic pay and 
                compensation (accrued pursuant to section 206 of title 
                37) determined using all the methods and assumptions 
                approved for the most recent (as of the first day of 
                the current fiscal year) actuarial valuation under 
                section 444(c)(1)(B) of this title (except that any 
                statutory change in the military retirement and 
                survivor benefit systems that is effective after the 
                date of that valuation and on or before the first day 
                of the current fiscal year shall be used in such 
                determination); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37) 
                accrued for that month by members of the Ready Reserve 
                (other than members of full-time Reserve duty other 
                than for training) who are not otherwise described in 
                paragraph (1)(B).
    ``(b) Annual Payment for Unfunded Liabilities.--(1) At the 
beginning of each fiscal year, beginning on October 1, 2008, the 
Secretary shall certify to the Secretary of the Treasury the amount of 
the first installment under the most recent amortization schedule 
established under section 254(a). The Secretary of the Treasury shall 
promptly pay into the Fund from the General Fund of the Treasury the 
amount so certified. Such payment shall be the contribution to the Fund 
for that fiscal year.
``Sec. 446. Investment of assets of the Fund
    ``The Secretary may request the Secretary of the Treasury to invest 
such portion of the Fund as is not, in the judgment of the Secretary, 
required to meet the current needs of the Fund. Such investments shall 
be made by the Secretary of the Treasury in public debt securities with 
maturities suitable to the needs of the Fund, as determined by the 
Secretary, and bearing interest at rates determined by the Secretary of 
the Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturities. The income on such investments shall be credited to and 
form a part of the Fund.''.
            (2) Technical amendments.--Such chapter is further 
        amended--
                    (A) by amending the center heading after the table 
                of sections to read as follows:

                      ``SUBCHAPTER I--OFFICERS'';

                    (B) by amending the center heading after section 
                336 to read as follows:

                  ``SUBCHAPTER II--ENLISTED MEMBERS'';

                    (C) by amending the center heading after section 
                373 to read as follows:

                ``SUBCHAPTER III--GENERAL PROVISIONS'';

            and
                    (D) by amending the center heading after section 
                425 to read as follows:

                 ``SUBCHAPTER IV--SPECIAL PROVISIONS''.

            (3) Clerical amendments.--The table of sections at the 
        beginning of such chapter is amended--
                    (A) by striking ``OFFICERS'' at the beginning of 
                the table and inserting ``SUBCHAPTER I--OFFICERS'';
                    (B) by striking ``ENLISTED MEMBERS'' after the item 
                relating to section 336 and inserting ``SUBCHAPTER II--
                ENLISTED MEMBERS'';
                    (C) by striking ``GENERAL PROVISIONS'' after the 
                item relating to section 373 and inserting ``SUBCHAPTER 
                III--GENERAL PROVISIONS'' ;
                    (D) by striking ``SPECIAL PROVISIONS'' after the 
                item relating to section 425 and inserting ``SUBCHAPTER 
                IV--SPECIAL PROVISIONS'' ; and
                    (E) by adding at the end the following:

          ``subchapter v--coast guard military retirement fund

``441. Establishment and purpose of Fund; definitions.
``442. Assets of the Fund.
``443. Payments from the Fund.
``444. Determination of contributions to the Fund.
``445. Payments into the Fund.
``446. Investment of assets of the Fund.''.
    (b) Implementation Year Exceptions.--To avoid funding shortfalls in 
the first year of implementation of subchapter V of chapter 11 of title 
14, United States Code, as added by subsection (a), if formal actuarial 
determinations are not available in time for budget preparation, the 
amounts used in the first year under sections 445(a)(1)(A) and 
445(a)(2)(A) of such title shall be set equal to those estimates in 
sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively, of such 
title if final determinations are not available. The original unfunded 
liability, as defined in section 444(a) of such title, shall include an 
adjustment to correct for this difference between the formal actuarial 
determinations and the estimates in sections 444(b)(1)(A)(i) and 
444(b)(1)(B)(i) of such title.
    (c) Conforming Amendment.--Section 256(f) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 906(f)) is amended 
by striking ``Retired Pay, Coast Guard (69-0241-0-1-403)'' and 
inserting ``Coast Guard Military Retirement Fund (69-0241-01-403)''.
    (d) Transfer of Existing Balances.--
            (1) Transfer.--There shall be transferred into the Fund on 
        October 1, 2008, any obligated and unobligated balances of 
        appropriations made to the Department of Homeland Security that 
        are currently available for retired pay, and amounts so 
        transferred shall be part of the assets of the Fund.
            (2) Fund defined.--For purposes of paragraph (1), the term 
        ``Fund'' means the Coast Guard Military Retirement Fund 
        established under section 441 of title 14, United States Code, 
        as added by subsection (a).
    (e) Effective Date.--Sections 443 (relating to payments from the 
Fund) and 445 (relating to payments into the Fund) of title 14, United 
States Code, as added by subsection (a), shall take effect on October 
1, 2008.

 Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs 
                         for Federal Employees

SEC. 411. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.

    (a) Section 8906 of title 5, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (c)(1) 
        and by adding at the end the following new paragraphs:
    ``(2) In addition to Government contributions required by 
subsection (b) and paragraph (1), each employing agency shall 
contribute amounts as determined by the Office to be necessary to 
prefund the accruing actuarial cost of post-retirement health benefits 
for each of the agency's current employees who are eligible for 
Government contributions under this section. Amounts under this 
paragraph shall be paid by the employing agency separate from other 
contributions under this section, from the appropriations or fund used 
for payment of the salary of the employee, on a schedule to be 
determined by the Office.
    ``(3) Paragraph (2) shall not apply to the United States Postal 
Service or the government of the District of Columbia.''; and
            (2) by amending subsection (g)(1) to read as follows:
    ``(g)(1) Except as provided in paragraphs (2) and (3), all 
Government contributions authorized by this section for health benefits 
for an annuitant shall be paid from the Employees Health Benefits Fund 
to the extent that funds are available in accordance with section 
8909(h)(6) and, if necessary, from annual appropriations which are 
authorized to be made for that purpose and which may be made available 
until expended.''.
    (b) Section 8909 of title 5, United States Code, is amended by 
adding at the end the following new subsection:
    ``(h)(1) Not later than June 30, 2009, the Office shall determine 
the existing liability of the Fund for post-retirement health benefits, 
excluding the liability of the United States Postal Service for service 
under section 8906(g)(2), under this chapter as of September 30, 2009. 
The Office shall establish an amortization schedule, including a series 
of annual installments commencing September 30, 2009, which provides 
for the liquidation of such liability by September 30, 2045.
    ``(2) At the close of each fiscal year, for fiscal years beginning 
after September 30, 2008, the Office shall determine the supplemental 
liability of the Fund for post-retirement health benefits, excluding 
the liability attributable to the United States Postal Service for 
service subject to section 8906(g)(2), and shall establish an 
amortization schedule, including a series of annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for liquidation of such supplemental liability over 30 years.
    ``(3) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles.
    ``(4) At the end of each fiscal year on and after September 30, 
2009, the Office shall notify the Secretary of the Treasury of the 
amounts of the next installments under the most recent amortization 
schedules established under paragraphs (1) and (2). Before closing the 
accounts for the fiscal year, the Secretary shall credit the sum of 
these amounts (including in that sum any negative amount for the 
amortization of the supplemental liability) to the Fund, as a 
Government contribution, out of any money in the Treasury of the United 
States not otherwise appropriated.
    ``(5) For the purpose of carrying out paragraphs (1) and (2), the 
Office shall perform or arrange for actuarial determinations and 
valuations and shall prescribe retention of such records as it 
considers necessary for making periodic actuarial valuations of the 
Fund.
    ``(6) Notwithstanding subsection (b), the amounts deposited into 
the Fund pursuant to this subsection and section 8906(c)(2) to prefund 
post-retirement health benefits costs shall be segregated within the 
Fund so that such amounts, as well as earnings and proceeds under 
subsection (c) attributable to them, may be used exclusively for the 
purpose of paying Government contributions for post-retirement health 
benefits costs. When such amounts are used in combination with amounts 
withheld from annuitants to pay for health benefits, a portion of the 
contributions shall then be set aside in the Fund as described in 
subsection (b).
    ``(7) Under this subsection, `supplemental liability' means--
            ``(A) the actuarial present value for future post-
        retirement health benefits that are the liability of the Fund, 
        less
            ``(B) the sum of--
                    ``(i) the actuarial present value of all future 
                contributions by agencies and annuitants to the Fund 
                toward those benefits pursuant to section 8906;
                    ``(ii) the present value of all scheduled 
                amortization payments to the Fund pursuant to 
                paragraphs (1) and (2);
                    ``(iii) the Fund balance as of the date the 
                supplemental liability is determined, to the extent 
                that such balance is attributable to post-retirement 
                benefits; and
                    ``(iv) any other appropriate amount, as determined 
                by the Office in accordance with generally accepted 
                actuarial practices and principles.''.

SEC. 412. FUNDING UNIFORMED SERVICES HEALTH BENEFITS FOR ALL RETIREES.

    Title 10, United States Code, is amended--
            (1) in the title of chapter 56, by striking ``DEPARTMENT OF 
        DEFENSE MEDICARE-ELIGIBLE'' and inserting ``UNIFORMED 
        SERVICES'';
            (2) in section 1111--
                    (A) in subsection (a)--
                            (i) by striking ``Department of Defense 
                        Medicare-Eligible'' and inserting ``Uniformed 
                        Services'';
                            (ii) by striking ``Department of Defense 
                        under''; and
                            (iii) by striking ``for medicare-eligible 
                        beneficiaries'';
                    (B) in subsection (c)--
                            (i) by striking ``The Secretary of Defense 
                        may'' and inserting ``The Secretary of Defense 
                        shall'';
                            (ii) by striking ``with any other'' and 
                        inserting ``with each'';
                            (iii) by striking ``Any such agreement'' 
                        and inserting ``Such agreements''; and
                            (iv) by striking ``administering Secretary 
                        may'' and inserting ``administrative Secretary 
                        shall'';
            (3) in section 1113--
                    (A) in subsection (a)--
                            (i) by striking ``and are medicare 
                        eligible'';
                            (ii) by striking ``who are medicare 
                        eligible''; and
                            (iii) by adding at the end the following 
                        new sentence: ``For the fiscal year starting 
                        October 1, 2007, only, the payments will be 
                        solely for the costs of members or former 
                        members of a uniformed service who are entitled 
                        to retired or retainer pay and are medicare-
                        eligible, and eligible dependents or survivors 
                        who are medicare-eligible.'';
                    (B) in subsection (c)(1), by striking ``who are 
                medicare-eligible'';
                    (C) in subsection (d), by striking ``who are 
                medicare-eligible''; and
                    (D) in subsection (f), by striking ``If'' and 
                inserting ``When'';
            (4) in section 1114, in subsection (a)(1), by striking 
        ``Department of Defense Medicare-Eligible'' and inserting 
        ``Uniformed Services'';
            (5) in section 1115--
                    (A) in subsection (b)(2), by striking ``The amount 
                determined under paragraph (1) for any fiscal year is 
                the amount needed to be appropriated to the Department 
                of Defense (or to the other executive department having 
                jurisdiction over the participating uniformed 
                service)'' and inserting ``The amount determined under 
                paragraph (1), or the amount determined under section 
                1111(c) for a participating uniformed service, for any 
                fiscal year, is the amount needed to be appropriated to 
                the Department of Defense (or to any other executive 
                department having jurisdiction over a participating 
                uniformed service)'';
                    (B) in subsection (c)(2), by striking ``for 
                medicare eligible beneficiaries''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(f) For the fiscal year starting October 1, 2007, only, the 
amounts in this section shall be based solely on the costs of medicare-
eligible benefits of beneficiaries and the costs for their eligible 
dependents or survivors who are medicare-eligible, and shall be 
recalculated thereafter to reflect the cost of beneficiaries defined in 
section 1111.''; and
            (6) in section 1116--
                    (A) in subsection (a)(1)(A), by striking ``for 
                medicare-eligible beneficiaries'';
                    (B) in subsection (a)(2)(A), by striking ``for 
                medicare-eligible beneficiaries''; and
                    (C) in subsection (c), by striking ``subsection (a) 
                shall be paid from funds available for the health care 
                programs'' and inserting ``subsection (a) and section 
                1111(c) shall be paid from funds available for the pay 
                of members of the participating uniformed services 
                under the jurisdiction of the respective administering 
                secretaries''.

SEC. 413. EFFECTIVE DATE.

    Except as otherwise provided, this title shall take effect upon 
enactment with respect to fiscal years beginning after 2008.

                    Subtitle C--Earmark Transparency

SEC. 421. PROHIBITION ON OBLIGATION OF FUNDS FOR EARMARKS INCLUDED ONLY 
              IN CONGRESSIONAL REPORTS.

    (a) Requirement That Earmarks Must Be in Legislative Text.--
Notwithstanding any other rule of the House, in addition to the 
requirements set forth in clause 9 of rule XXI of the Rules of the 
House of Representatives, it shall not be in order to consider any 
bill, joint resolution, amendment thereto, or conference report 
thereon, unless the list of congressional earmarks, limited tax 
benefits, and limited tariff benefits, required by clause 9(a)of rule 
XXI are also set forth in the text of such measure.
    (b) Availability on the Internet.--Notwithstanding any other rule 
of the House, in addition to the requirements set forth in clause 9 of 
rule XXI of the Rules of the House of Representatives, it shall not be 
in order to consider any bill, joint resolution, or conference report 
thereon, unless the lists required by paragraphs (1), (2), and (4) of 
clause 9 of rule XXI are made available on the Internet in a searchable 
format to the general public for at least 48 hours before 
consideration.

SEC. 422. DEFINITIONS.

    (a) Congressional Earmark.--For purposes of this subtitle, the term 
``congressional earmark'' means a provision or report language included 
primarily at the request of a Member, Delegate, Resident Commissioner, 
or Senator providing, authorizing or recommending a specific amount of 
discretionary budget authority, credit authority, or other spending 
authority for a contract, loan, loan guarantee, grant, loan authority, 
or other expenditure with or to an entity, or targeted to a specific 
State, locality or Congressional district, other than through a 
statutory or administrative formula-driven or competitive award 
process.
    (b) Limited Benefits.--
            (1) Limited tariff benefit.--The term ``limited tariff 
        benefit'' means any provision of law that modifies the 
        Harmonized Tariff Schedule of the United States in a manner 
        that benefits 10 or fewer entities (as defined in paragraph 
        (12)(B)).
            (2) Limited tax benefit.--(A) The term ``limited tax 
        benefit'' means any revenue-losing provision that provides a 
        Federal tax deduction, credit, exclusion, or preference to ten 
        or fewer beneficiaries (determined with respect to either 
        present law or any provision of which the provision is a part) 
        under the Internal Revenue Code of 1986 in any year for which 
        the provision is in effect;
            (B) For purposes of subparagraph (A)--
                    (i) all businesses and associations that are 
                members of the same controlled group of corporations 
                (as defined in section 1563(a) of the Internal Revenue 
                Code of 1986) shall be treated as a single beneficiary;
                    (ii) all shareholders, partners, members, or 
                beneficiaries of a corporation, partnership, 
                association, or trust or estate, respectively, shall be 
                treated as a single beneficiary;
                    (iii) all employees of an employer shall be treated 
                as a single beneficiary;
                    (iv) all qualified plans of an employer shall be 
                treated as a single beneficiary;
                    (v) all beneficiaries of a qualified plan shall be 
                treated as a single beneficiary;
                    (vi) all contributors to a charitable organization 
                shall be treated as a single beneficiary;
                    (vii) all holders of the same bond issue shall be 
                treated as a single beneficiary; and
                    (viii) if a corporation, partnership, association, 
                trust or estate is the beneficiary of a provision, the 
                shareholders of the corporation, the partners of the 
                partnership, the members of the association, or the 
                beneficiaries of the trust or estate shall not also be 
                treated as beneficiaries of such provision;
            (C) For the purpose of this paragraph, the term ``revenue-
        losing provision'' means any provision that is estimated to 
        result in a reduction in Federal tax revenues (determined with 
        respect to either present law or any provision of which the 
        provision is a part) for any one of the two following periods--
                    (i) the first fiscal year for which the provision 
                is effective; or
                    (ii) the period of the 5 fiscal years beginning 
                with the first fiscal year for which the provision is 
                effective;
            (D) the term ``limited tax benefit'' does not include any 
        provision which applies uniformly to an entire industry; and
            (E) the terms used in this paragraph shall have the same 
        meaning as those terms have generally in the Internal Revenue 
        Code of 1986, unless otherwise expressly provided.
    (c) Special Rule.--Notwithstanding any other provision of the Rules 
of the House, the definitions set forth in this section shall apply for 
congressional earmarks, limited tariff benefits, and limited tax 
benefits.

                  Subtitle D--Public Debt Limit Reform

SEC. 431. LIMIT ON PUBLIC DEBT.

    Section 3101 of title 31, United States Code, is amended to read as 
follows:
``Sec. 3101. Public debt limit
    ``(a) In this section, the current redemption value of an 
obligation issued on a discount basis and redeemable before maturity at 
the option of its holder is deemed to be the face amount of the 
obligation.
    ``(b) The face amount of obligations issued under this chapter and 
the face amount of obligations whose principal and interest are 
guaranteed by the United States Government (except guaranteed 
obligations held by the Secretary of the Treasury and intragovernmental 
holdings) may not be more than $4,393,000,000,000 outstanding at one 
time, subject to changes periodically made in that amount as provided 
by law.
    ``(c) For purposes of this section, the face amount, for any month, 
of any obligation issued on a discount basis that is not redeemable 
before maturity at the option of the holder of the obligation is an 
amount equal to the sum of--
            ``(1) the original issue price of the obligation, plus
            ``(2) the portion of the discount on the obligation 
        attributable to periods before the beginning of such month (as 
        determined under the principles of section 1272(a) of the 
        Internal Revenue Code of 1986 without regard to any exceptions 
        contained in paragraph (2) of such section).
    ``(d) For purposes of this section, the term `intragovernment 
holding' is any obligation issued by the Secretary of the Treasury to 
any Federal trust fund or Government account, whether in respect of 
public money, money otherwise required to be deposited in the Treasury, 
or amounts appropriated.''.

SEC. 432. REPEAL OF THE GEPHARDT RULE.

    The Rules of the House of Representatives are amended by repealing 
rule XXVII (relating to the statutory limit on public debt) and by 
redesignating rule XXVIII as rule XXVII.

                   Subtitle E--Risk-Assumed Budgeting

SEC. 441. FEDERAL INSURANCE PROGRAMS.

    (a) In General.--The Congressional Budget Act of 1974 is amended by 
adding after title V the following new title:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``SEC. 602. BUDGETARY TREATMENT.

    ``(a) President's Budget.--Beginning with fiscal year 2011, the 
budget of the Government pursuant to section 1105(a) of title 31, 
United States Code, shall be based on the risk-assumed cost of Federal 
insurance programs.
    ``(b) Budget Accounting.--For any Federal insurance program--
            ``(1) the program account shall--
                    ``(A) pay the risk-assumed cost borne by the 
                taxpayer to the financing account, and
                    ``(B) pay actual insurance program administrative 
                costs;
            ``(2) the financing account shall--
                    ``(A) receive premiums and other income,
                    ``(B) pay all claims for insurance and receive all 
                recoveries,
                    ``(C) transfer to the program account on not less 
                than an annual basis amounts necessary to pay insurance 
                program administrative costs;
            ``(3) a negative risk-assumed cost shall be transferred 
        from the financing account to the program account, and shall be 
        transferred from the program account to the general fund; and
            ``(4) all payments by or receipts of the financing accounts 
        shall be treated in the budget as a means of financing.
    ``(c) Appropriations Required.--(1) Notwithstanding any other 
provision of law, insurance commitments may be made for fiscal year 
2011 and thereafter only to the extent that new budget authority to 
cover their risk-assumed cost is provided in advance in an 
appropriation Act.
    ``(2) An outstanding insurance commitment shall not be modified in 
a manner that increases its risk-assumed cost unless budget authority 
for the additional cost has been provided in advance.
    ``(3) Paragraph (1) shall not apply to Federal insurance programs 
that constitute entitlements.
    ``(d) Reestimates.--The risk-assumed cost for a fiscal year shall 
be reestimated in each subsequent year. Such reestimate can equal zero. 
In the case of a positive reestimate, the amount of the reestimate 
shall be paid from the program account to the financing account. In the 
case of a negative reestimate, the amount of the reestimate shall be 
paid from the financing account to the program account, and shall be 
transferred from the program account to the general fund. Reestimates 
shall be displayed as a distinct and separately identified subaccount 
in the program account.
    ``(e) Administrative Expenses.--All funding for an agency's 
administration of a Federal insurance program shall be displayed as a 
distinct and separately identified subaccount in the program account.

``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR 
              FEDERAL INSURANCE PROGRAMS.

    ``(a) Agency Requirements.--Agencies with responsibility for 
Federal insurance programs shall develop models to estimate their risk-
assumed cost by year through the budget horizon and shall submit those 
models, all relevant data, a justification for critical assumptions, 
and the annual projected risk-assumed costs to OMB with their budget 
requests each year starting with the request for fiscal year 2010. 
Agencies will likewise provide OMB with annual estimates of 
modifications, if any, and reestimates of program costs.
    ``(b) Disclosure.--When the President submits a budget of the 
Government pursuant to section 1105(a) of title 31, United States Code, 
for fiscal year 2010, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of information 
describing the models, data (including sources), and critical 
assumptions (including explicit or implicit discount rate assumptions) 
that it or other executive branch entities would use to estimate the 
risk-assumed cost of Federal insurance programs and giving such persons 
an opportunity to submit comments. At the same time, the chairman of 
the Committee on the Budget shall publish a notice for CBO in the 
Federal Register advising interested persons of the availability of 
information describing the models, data (including sources), and 
critical assumptions (including explicit or implicit discount rate 
assumptions) that it would use to estimate the risk-assumed cost of 
Federal insurance programs and giving such interested persons an 
opportunity to submit comments.
    ``(c) Revision.--(1) After consideration of comments pursuant to 
subsection (b), and in consultation with the Committees on the Budget 
of the House of Representatives and the Senate, OMB and CBO shall 
revise the models, data, and major assumptions they would use to 
estimate the risk-assumed cost of Federal insurance programs.
    ``(2) When the President submits a budget of the Government 
pursuant to section 1105(a) of title 31, United States Code, for fiscal 
year 2011, OMB shall publish a notice in the Federal Register advising 
interested persons of the availability of information describing the 
models, data (including sources), and critical assumptions (including 
explicit or implicit discount rate assumptions) that it or other 
executive branch entities used to estimate the risk-assumed cost of 
Federal insurance programs.
    ``(d) Display.--
            ``(1) In general.--For fiscal years 2011, 2012, and 2013 
        the budget submissions of the President pursuant to section 
        1105(a) of title 31, United States Code, and CBO's reports on 
        the economic and budget outlook pursuant to section 202(e)(1) 
        and the President's budgets, shall for display purposes only, 
        estimate the risk-assumed cost of existing or proposed Federal 
        insurance programs.
            ``(2) OMB.--The display in the budget submissions of the 
        President for fiscal years 2011, 2012, and 2013 shall include--
                    ``(A) a presentation for each Federal insurance 
                program in budget-account level detail of estimates of 
                risk-assumed cost;
                    ``(B) a summary table of the risk-assumed costs of 
                Federal insurance programs; and
                    ``(C) an alternate summary table of budget 
                functions and aggregates using risk-assumed rather than 
                cash-based cost estimates for Federal insurance 
                programs.
            ``(3) CBO.--In the second session of the 110th Congress and 
        the 111th Congress, CBO shall include in its estimates under 
        section 308, for display purposes only, the risk-assumed cost 
        of existing Federal insurance programs, or legislation that 
        CBO, in consultation with the Committees on the Budget of the 
        House of Representatives and the Senate, determines would 
        create a new Federal insurance program.
    ``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 months 
after the budget submission of the President pursuant to section 
1105(a) of title 31, United States Code, for fiscal year 2012, OMB, 
CBO, and GAO shall each submit to the Committees on the Budget of the 
House of Representatives and the Senate a report that evaluates the 
advisability and appropriate implementation of this title.
    ``(2) Each report made pursuant to paragraph (1) shall address the 
following:
            ``(A) The adequacy of risk-assumed estimation models used 
        and alternative modeling methods.
            ``(B) The availability and reliability of data or 
        information necessary to carry out this title.
            ``(C) The appropriateness of the explicit or implicit 
        discount rate used in the various risk-assumed estimation 
        models.
            ``(D) The advisability of specifying a statutory discount 
        rate (such as the Treasury rate) for use in risk-assumed 
        estimation models.
            ``(E) The ability of OMB, CBO, or GAO, as applicable, to 
        secure any data or information directly from any Federal agency 
        necessary to enable it to carry out this title.
            ``(F) The relationship between risk-assumed accrual 
        budgeting for Federal insurance programs and the specific 
        requirements of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
            ``(G) Whether Federal budgeting is improved by the 
        inclusion of risk-assumed cost estimates for Federal insurance 
        programs.
            ``(H) The advisability of including each of the programs 
        currently estimated on a risk-assumed cost basis in the Federal 
        budget on that basis.

``SEC. 604. DEFINITIONS.

    ``For purposes of this title:
            ``(1) The term `Federal insurance program' means a program 
        that makes insurance commitments and includes the list of such 
        programs included in the joint explanatory statement of 
        managers accompanying the conference report on the 
        Comprehensive Budget Process Reform Act of 1999.
            ``(2) The term `insurance commitment' means an agreement in 
        advance by a Federal agency to indemnify a non-Federal entity 
        against specified losses. This term does not include loan 
        guarantees as defined in title V or benefit programs such as 
        social security, medicare, and similar existing social 
        insurance programs.
            ``(3)(A) The term `risk-assumed cost' means the net present 
        value of the estimated cash flows to and from the Government 
        resulting from an insurance commitment or modification thereof.
            ``(B) The cash flows associated with an insurance 
        commitment include--
                    ``(i) expected claims payments inherent in the 
                Government's commitment;
                    ``(ii) net premiums (expected premium collections 
                received from or on behalf of the insured less expected 
                administrative expenses);
                    ``(iii) expected recoveries; and
                    ``(iv) expected changes in claims, premiums, or 
                recoveries resulting from the exercise by the insured 
                of any option included in the insurance commitment.
            ``(C) The cost of a modification is the difference between 
        the current estimate of the net present value of the remaining 
        cash flows under the terms of the insurance commitment, and the 
        current estimate of the net present value of the remaining cash 
        flows under the terms of the insurance commitment as modified.
            ``(D) The cost of a reestimate is the difference between 
        the net present value of the amount currently required by the 
        financing account to pay estimated claims and other 
        expenditures and the amount currently available in the 
        financing account. The cost of a reestimate shall be accounted 
        for in the current year in the budget of the Government 
        pursuant to section 1105(a) of title 31, United States Code.
            ``(E) For purposes of this definition, expected 
        administrative expenses shall be construed as the amount 
        estimated to be necessary for the proper administration of the 
        insurance program. This amount may differ from amounts actually 
        appropriated or otherwise made available for the administration 
        of the program.
            ``(4) The term `program account' means the budget account 
        for the risk-assumed cost, and for paying all costs of 
        administering the insurance program, and is the account from 
        which the risk-assumed cost is disbursed to the financing 
        account.
            ``(5) The term `financing account' means the nonbudget 
        account that is associated with each program account which 
        receives payments from or makes payments to the program 
        account, receives premiums and other payments from the public, 
        pays insurance claims, and holds balances.
            ``(6) The term `modification' means any Government action 
        that alters the risk-assumed cost of an existing insurance 
        commitment from the current estimate of cash flows. This 
        includes any action resulting from new legislation, or from the 
        exercise of administrative discretion under existing law, that 
        directly or indirectly alters the estimated cost of existing 
        insurance commitments.
            ``(7) The term `model' means any actuarial, financial, 
        econometric, probabilistic, or other methodology used to 
        estimate the expected frequency and magnitude of loss-producing 
        events, expected premiums or collections from or on behalf of 
        the insured, expected recoveries, and administrative expenses.
            ``(8) The term `current' has the same meaning as in section 
        250(c)(9) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
            ``(9) The term `OMB' means the Director of the Office of 
        Management and Budget.
            ``(10) The term `CBO' means the Director of the 
        Congressional Budget Office.
            ``(11) The term `GAO' means the Comptroller General of the 
        United States.

``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST 
              ACCOUNT.

    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated $600,000 for each of fiscal years 2008 through 2013 to the 
Director of the Office of Management and Budget and each agency 
responsible for administering a Federal program to carry out this 
title.
    ``(b) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend to, or 
pay the insurance financing accounts such amounts as may be 
appropriate. The Secretary of the Treasury may prescribe forms and 
denominations, maturities, and terms and conditions for the 
transactions described above. The authorities described above shall not 
be construed to supersede or override the authority of the head of a 
Federal agency to administer and operate an insurance program. All the 
transactions provided in this subsection shall be subject to the 
provisions of subchapter II of chapter 15 of title 31, United States 
Code. Cash balances of the financing accounts in excess of current 
requirements shall be maintained in a form of uninvested funds, and the 
Secretary of the Treasury shall pay interest on these funds.
    ``(c) Appropriation of Amount Necessary To Cover Risk-Assumed Cost 
of Insurance Commitments at Transition Date.--(1) A financing account 
is established on September 30, 2012, for each Federal insurance 
program.
    ``(2) There is appropriated to each financing account the amount of 
the risk-assumed cost of Federal insurance commitments outstanding for 
that program as of the close of September 30, 2012.
    ``(3) These financing accounts shall be used in implementing the 
budget accounting required by this title.

``SEC. 606. EFFECTIVE DATE.

    ``(a) In General.--This title shall take effect immediately and 
shall expire on September 30, 2014.
    ``(b) Special Rule.--If this title is not reauthorized by September 
30, 2014, then the accounting structure and budgetary treatment of 
Federal insurance programs shall revert to the accounting structure and 
budgetary treatment in effect immediately before the date of enactment 
of this title.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 507 the 
following new items:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for 
                            Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost 
                            account.
``Sec. 606. Effective date.''.

         TITLE V--MAINTAINING A COMMITMENT TO THE FAMILY BUDGET

               Subtitle A--Further Enforcement Amendments

SEC. 501. SUPER-MAJORITY POINTS OF ORDER IN THE HOUSE OF 
              REPRESENTATIVES AND THE SENATE.

    (a) Section 904 of the Congressional Budget Act of 1974 is amended 
as follows:
            (1) In subsection (c)(1), insert ``312(g), (h), (i), and 
        (j),'' before ``313,'', and insert ``316, 318, 319(a)'' before 
        ``904(c),''.
            (2) In subsection (c) strike ``three-fifths'' each place it 
        appears and insert ``two-thirds''.
            (3)(A) In subsection (d)(2), insert ``312(g), (h), (i), and 
        (j),'' before ``313,'', and insert ``316, 318, 319(a)'' before 
        ``904(c),''.
            (B) In subsection (d), strike ``three-fifths'' each place 
        it appears and insert ``two-thirds''.
            (4)(A) In subsections (c)(2) and (d)(3), strike 
        ``311(a),''.
            (B) In subsections (c)(1) and (d)(2) insert ``311(a),'' 
        after ``310(d)(2),''.
            (5) In subsections (c)(1), (c)(2), (d)(2), and (d)(3) by 
        inserting ``or the House of Representatives'' after ``Senate'' 
        each place it appears.
            (6) Strike subsection (e).

SEC. 502. BUDGET RESOLUTION ENFORCEMENT POINT OF ORDER.

    (a) Entitlement Point of Order.--Section 312 of the Congressional 
Budget Act of 1974 (as amended by section 221(d)) is further amended by 
adding at the end the following new subsection:
    ``(j) Budget Resolution Enforcement Point of Order.--It shall not 
be in order in the House of Representatives or the Senate to consider 
any joint resolution on the budget for a fiscal year, or amendment 
thereto or conference report thereon, that--
            ``(1) is not consistent with the discretionary spending 
        limits set forth in section 251(b) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985; or
            ``(2) provides for an increase in the aggregate level of 
        direct spending for the fiscal year of the resolution or any 
        ensuing fiscal year included in such resolution.''.

SEC. 503. POINT OF ORDER WAIVER PROTECTION.

    Rule XIII of the Rules of the House of Representatives (as amended 
by section 313) is further amended by adding at the end the following 
new clause:
    ``10. (a) It shall not be in order to consider a rule or order that 
would waive the provisions of any section of the Congressional Budget 
Act of 1974 referred to in section 904(c)(1) of such Act or of section 
302 of the Family Budget Protection Act of 2007.
    ``(b) As disposition of a point of order under paragraph (a), the 
Chair shall put the question of consideration with respect to the 
proposition that is the subject of the point of order. A question of 
consideration under this clause shall be debatable for 10 minutes by 
the Member initiating the point of order and for 10 minutes by an 
opponent of the point of order, but shall otherwise be decided without 
intervening motion except one that the House adjourn or that the 
Committee of the Whole rise, as the case may be.
    ``(c) The disposition of the question of consideration under this 
clause with respect to a bill or joint resolution shall be considered 
also to determine the question of consideration under this clause with 
respect to an amendment made in order as original text.''.

                       Subtitle B--The Byrd Rule

SEC. 511. LIMITATION ON BYRD RULE.

    (a) Protection of Conference Reports.--Section 313 of the 
Congressional Budget Act of 1974 is amended--
            (1) in subsection (b)(1), by striking subparagraph (E) 
        through the semicolon at the end thereof and by redesignating 
        subparagraph (F) as subparagraph (E);
            (2) in subsection (c), by striking ``and again upon the 
        submission of a conference report on such a reconciliation bill 
        or resolution,'';
            (3) by striking subsection (d);
            (4) by redesignating subsection (e) as subsection (d); and
            (5) in subsection (e), as redesignated--
                    (A) by striking ``, motion, or conference report'' 
                the first place it appears and inserting ``, or 
                motion''; and
                    (B) by striking ``, motion, or conference report'' 
                the second and third places it appears and inserting 
                ``or motion''.
    (b) Conforming Amendment.--The first sentence of section 312(e) of 
the Congressional Budget Act of 1974 is amended by inserting ``, except 
for section 313,'' after ``Act''.

     Subtitle C--Treatment of Extraneous Appropriations in Omnibus 
                         Appropriation Measures

SEC. 521. TREATMENT OF EXTRANEOUS APPROPRIATIONS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(as amended by section 127(a)) is further amended by adding at the end 
the following new section:

   ``treatment of extraneous appropriations in omnibus appropriation 
                                measures

    ``Sec. 319.  (a) Point of Order.--It shall not be in order in the 
House of Representatives or the Senate to consider an omnibus 
appropriation measure, or any amendment thereto or conference report 
thereon, that appropriates funds for any program, project, or activity 
that is not within the subject-matter jurisdiction of any subcommittee 
of the Committee on Appropriations of the House of Representatives or 
Senate, as applicable, with jurisdiction over any regular appropriation 
bill contained in such measure.
    ``(b) Definitions.--As used in this section:
            ``(1) The term `omnibus appropriation measure' means any 
        bill or joint resolution making continuing appropriations for a 
        fiscal year and that is comprised of more than one regular 
        appropriation bills.
            ``(2) The term `regular appropriation bill' means any 
        annual appropriation bill making appropriations, otherwise 
        making funds available, or granting authority, for any of the 
        following categories of projects and activities:
                    ``(A) Agriculture, rural development, Food and Drug 
                Administration, and related agencies programs.
                    ``(B) The Department of Defense.
                    ``(C) Energy and water development, and related 
                agencies.
                    ``(D) State, foreign operations, and related 
                programs.
                    ``(E) The Department of Homeland Security.
                    ``(F) The Department of the Interior, Environmental 
                Protection Agency, and related agencies.
                    ``(G) The Departments of Labor, Health and Human 
                Services, and Education, and related agencies.
                    ``(H) Military construction, veterans affairs, and 
                related agencies.
                    ``(I) Science, the Departments of State, Justice, 
                and Commerce, and related agencies.
                    ``(J) The Departments of Transportation, Housing 
                and Urban Development, and related agencies.
                    ``(K) The Legislative Branch.
                    ``(L) Financial services and general government.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 318 the 
following new item:

``Sec. 319. Treatment of extraneous appropriations in omnibus 
                            appropriation measures.''.
                                 <all>`