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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3358 Referral Instructions House (RIH)]

108th CONGRESS
  1st Session
                                H. R. 3358

 To require a balanced Federal budget by fiscal year 2009 and for each 
   year thereafter, to combat waste, fraud, and abuse, to establish 
 biennial budgets, to amend the Balanced Budget and Emergency Deficit 
  Control Act of 1985 to impose spending safeguards on the growth of 
     entitlements and discretionary spending, and to enforce those 
   requirements through a budget process involving the President and 
                      Congress and sequestration.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 21, 2003

 Mr. Hensarling (for himself, Mr. Barrett of South Carolina, Mr. Mario 
Diaz-Balart of Florida, Mr. Barton of Texas, Mr. Akin, Mr. DeMint, Mr. 
  Goode, Mr. Manzullo, Mr. Thornberry, Mr. Gutknecht, Mr. Flake, Mrs. 
Myrick, Mr. Beauprez, Mr. Franks of Arizona, Mr. Garrett of New Jersey, 
Mr. Pitts, Mr. Tancredo, Mr. Miller of Florida, Mr. Chabot, Mr. Carter, 
  Mr. Culberson, Mr. Cole, Mr. Sessions, Mr. Pence, Mr. Shadegg, Mr. 
Terry, Mr. Wilson of South Carolina, Mr. Toomey, Mr. Smith of Michigan, 
 and Mr. Feeney) introduced the following bill; which was referred to 
the Committee on the Budget, for a period ending not later than October 
  31, 2003, and in addition to the Committees on Rules 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 require a balanced Federal budget by fiscal year 2009 and for each 
   year thereafter, to combat waste, fraud, and abuse, to establish 
 biennial budgets, to amend the Balanced Budget and Emergency Deficit 
  Control Act of 1985 to impose spending safeguards on the growth of 
     entitlements and discretionary spending, and to enforce those 
   requirements through a budget process involving the President and 
                      Congress and sequestration.

    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 2003''.
    (b) Table of Contents.--

Sec. 1. Short title.
              TITLE I--BALANCED BUDGET BY FISCAL YEAR 2009

Sec. 101. Reduction of maximum deficit amount to zero.
Sec. 102. Maximum deficit amount and limit on public debt points of 
                            order.
Sec. 103. Adjustment in the event of negative revenue growth.
                TITLE II--DISCRETIONARY SPENDING LIMITS

Sec. 201. Enforcing discretionary spending limits.
Sec. 202. Establishment of family budget protection discretionary 
                            account.
 TITLE III--SPENDING CAPS ON THE GROWTH OF ENTITLEMENTS AND MANDATORIES

Sec. 301. Spending caps on growth of entitlements and mandatories.
Sec. 302. Exempt programs and activities.
Sec. 303. Exceptions, limitations, and special rules.
Sec. 304. Point of order.
Sec. 305. Technical and conforming amendments.
Sec. 306. Establishment of family budget protection mandatory account.
     TITLE IV--COMBATING WASTE, FRAUD, AND ABUSE THROUGH SUNSETTING

Sec. 401. Reauthorization of discretionary programs and unearned 
                            entitlements.
Sec. 402. Point of order.
Sec. 403. Decennial sunsetting.
        TITLE V--JOINT BUDGET RESOLUTIONS AND BIENNIAL BUDGETING

                  Subtitle A--Joint Budget Resolutions

Sec. 501. Joint budget resolutions.
                     Subtitle B--Biennial Budgeting

Sec. 511. Revision of timetable.
Sec. 512. Amendments to the Congressional Budget and Impoundment 
                            Control Act of 1974.
Sec. 513. Amendments to Rules of House of Representatives.
Sec. 514. Amendments to title 31, United States Code.
Sec. 515. Two-year appropriations; title and style of appropriation 
                            acts.
Sec. 516. Multiyear authorizations.
Sec. 517. Government strategic and performance plans on a biennial 
                            basis.
Sec. 518. Biennial appropriation bills.
Sec. 519. Assistance by Federal agencies to standing committees of the 
                            Senate and the House of Representatives.
Sec. 520. Report on two-year fiscal period.
Sec. 521. Special transition period for the 109th Congress.
             Subtitle C--Prevention of Government Shutdown

Sec. 531. Amendment to title 31.
                       Subtitle D--Effective Date

Sec. 532. Effective date.
                TITLE VI--FURTHER ENFORCEMENT AMENDMENTS

Sec. 601. Super-majority points of order.
Sec. 602. Budget resolution enforcement point of order.
Sec. 603. Point of order waiver protection.

              TITLE I--BALANCED BUDGET BY FISCAL YEAR 2009

SEC. 101. REDUCTION OF MAXIMUM DEFICIT AMOUNT TO ZERO.

    Section 253 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows:

``SEC. 253. ENFORCING DEFICIT TARGETS.

    ``(a) Sequestration.--Within 15 calendar days after Congress 
adjourns to end a session (other than of the first session of the One 
Hundred Eighth Congress) and on the same day as a sequestration (if 
any) under section 251 and section 252A, but after any sequestration 
required by section 251 (enforcing discretionary spending limits) or 
section 252A (enforcing controls on direct spending), there shall be a 
sequestration to eliminate the excess deficit (if any remains) if it 
exceeds the margin.
    ``(b) Excess Deficit; Margin.--The excess deficit is, if greater 
than zero, the estimated deficit for the budget year, minus the maximum 
deficit amount for that year.
The `margin' for any fiscal year is $5,000,000,000.
    ``(c) Dividing the Sequestration.--To eliminate the excess deficit 
in a budget year, half of the required outlay reductions shall be 
obtained from non-exempt defense accounts (accounts designated as 
function 050 in the President's fiscal year 2005 budget submission) and 
half from non-exempt, non-defense accounts (all other non-exempt 
accounts).
    ``(d) Defense.--Each non-exempt defense account shall be reduced by 
a dollar amount calculated by multiplying the level of sequesterable 
budgetary resources in that account at that time by the uniform 
percentage necessary to carry out subsection (c). If any defense 
accounts are exempted by the President, no adjustments shall be made in 
the uniform percentage for non-exempt defense accounts.
    ``(e) Non-Defense.--Actions to reduce non-defense accounts shall be 
taken in the following order:
            ``(1) First.--All reductions in automatic spending 
        increases under section 256(a) shall be made.
            ``(2) Second.--If additional reductions in non-defense 
        accounts are required to be made, the maximum reduction 
        permissible under sections 256(b) (guaranteed student loans) 
        and 256(c) (foster care and adoption assistance) shall be made.
            ``(3) Third.--(A) If additional reductions in non-defense 
        accounts are required to be made, each remaining non-exempt, 
        non-defense account shall be reduced by the uniform percentage 
        necessary to make the reductions in non-defense outlays 
        required by subsection (c), except that any program specified 
        in section 256 that is subject to a 2-percent limitation shall 
        not be reduced by more than 2 percent in total including any 
        reduction of less than 2 percent made under 252A, if it has 
        been reduced by 2 percent under either such section, it may not 
        be further reduced under this section; and the uniform percent 
        applicable to all other programs under this subsection shall be 
        increased (if necessary) to a level sufficient to achieve the 
        required reduction in non-defense outlays.
            ``(B) For purposes of determining reductions under 
        subparagraph (A), outlay reduction (as a result of 
        sequestration of Commodity Credit Corporation commodity price 
        support contracts in the fiscal year of a sequestration) that 
        would occur in the following fiscal year shall be credited as 
        outlay reductions in the fiscal year of the sequestration.
If any defense accounts are exempted by the President, no adjustments 
shall be made in the uniform percentage for non-exempt non-defense 
accounts.
    ``(f) Baseline Assumptions; Part-Year Appropriations.--
            ``(1) Budget assumptions.--For purposes of subsections (b), 
        (c), (d), and (e), accounts shall be assumed to be at the level 
        in the baseline minus any reductions required to be made under 
        sections 251 and 252A.
            ``(2) Part-year appropriations.--If, on the date specified 
        in subsection (a), there is in effect an Act making or 
        continuing appropriations for part of a fiscal year for any 
        non-exempt budget account, then the dollar sequestration 
        calculated for that account under subsection (d) or (e), as 
        applicable, shall be subtracted from--
                    ``(A) the annualized amount otherwise available by 
                law in that account under that or a subsequent part-
                year appropriation; and
                    ``(B) when a full-year appropriation for that 
                account is enacted, from the amount otherwise provided 
                by the full-year appropriation; except that the amount 
                to be sequestered from that account shall be reduced 
                (but not below zero) by the savings achieved by that 
                appropriation when the enacted amount is less than the 
                baseline for that account.
    ``(g) Look-Back Sequester.--
            ``(1) In general.--On July 1 of each fiscal year, the 
        Director of OMB shall determine if laws effective during the 
        current fiscal year will cause the deficit to exceed the 
        maximum deficit amount for such fiscal year. If the limit is 
        exceeded, there shall be a preliminary sequester on July 1 to 
        eliminate the excess.
            ``(2) Permanent sequester.--Budget authority sequestered on 
        July 1 pursuant to paragraph (1) shall be permanently canceled 
        on July 15.
            ``(3) No margin.--The margin for determining a sequester 
        under this subsection shall be $5,000,000,000.
            ``(4) Sequestration procedures.--The provision of 
        subsections (c), (d), and (e) of this section shall apply to a 
        sequester under this subsection.
    ``(h) Maximum Deficit Amount.--The term `maximum deficit amount' 
means--
            ``(1) with respect to fiscal year 2005, $429,200,000,000;
            ``(2) with respect to fiscal year 2006, $368,400,000,000;
            ``(3) with respect to fiscal year 2007, $307,600,000,000;
            ``(4) with respect to fiscal year 2008, $270,000,000,000;
            ``(5) with respect to fiscal year 2009, $186,000,000,000;
            ``(6) with respect to fiscal year 2010, $125,200,000,000;
            ``(7) with respect to fiscal year 2011, $64,400,000,000; 
        and
            ``(8) with respect to fiscal year 2012 and fiscal years 
        thereafter, zero.''.

SEC. 102. MAXIMUM DEFICIT AMOUNT AND LIMIT ON PUBLIC DEBT POINTS OF 
              ORDER.

    (a) MDA Point of Order.--Section 312 of the Congressional Budget 
Act of 1974 is amended by adding at the end the following new 
subsection:
    ``(g) Maximum Deficit 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 includes any provision 
that would result in a deficit for a fiscal year that exceeds the 
maximum deficit amount for such fiscal year.''.
    (b) Balancing the Budget.--Section 301(a)(3) of the Congressional 
Budget Act of 1974 is amended by adding ``(except that after fiscal 
year 2011 there shall be no provision for a deficit) after ``budget''.

SEC. 103. ADJUSTMENT IN THE EVENT OF NEGATIVE REVENUE GROWTH.

    (a) In General.--Part B of the Balanced Budget and Emergency 
Deficit Control of Act of 1985 is amended by repealing sections 258, 
258A, 258B, and 258C and inserting a new section 258 to read as 
follows:

``SEC. 258. ADJUSTMENT IN THE EVENT OF NEGATIVE REVENUE GROWTH.

    ``Whenever an OMB sequestration preview report or an OMB 
sequestration update report for a budget year estimates that the level 
of aggregate Federal revenues for the budget year will be less than the 
level of aggregate Federal revenues for the prior year, OMB may change 
the maximum deficit amount under section 253(h) for that budget year to 
the prior year's amount or increase the maximum deficit amount for the 
budget year by not more than the amount of the revenue shortfall.''.
    (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 striking the items relating to sections 258, 258A, 
258B, and 258C and adding after the item relating to section 257 the 
following new item:

``Sec. 258. Adjustment in the event of negative revenue growth.''.

                TITLE II--DISCRETIONARY SPENDING LIMITS

SEC. 201. 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 2005--
                    ``(A) $795,442,000,000 in new budget authority of 
                which no more than $376,005,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category;
            ``(2) with respect to fiscal year 2006--
                    ``(A) $807,374,000,000 in new budget authority of 
                which no more than $367,867,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category;
            ``(3) with respect to fiscal year 2007--
                    ``(A) $819,484,000,000 in new budget authority of 
                which no more than $359,755,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category;
            ``(4) with respect to fiscal year 2008--
                    ``(A) $831,777,000,000 in new budget authority of 
                which no more than $351,648,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category;
            ``(5) with respect to fiscal year 2009--
                    ``(A) $844,243,000,000 in new budget authority of 
                which no more than $350,955,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category;
            ``(6) with respect to fiscal year 2010--
                    ``(A) $856,917,000,000 in new budget authority of 
                which no more than $349,891,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category;
            ``(7) with respect to fiscal year 2011--
                    ``(A) $869,771,000,000 in new budget authority of 
                which no more than $348,512,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category;
            ``(8) with respect to fiscal year 2012--
                    ``(A) $882,817,000,000 in new budget authority of 
                which no more than $347,137,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category; and
            ``(9) with respect to fiscal year 2013--
                    ``(A) $896,060,000,000 in new budget authority of 
                which no more than $345,628,000,000 shall be for the 
                nondefense category; and
                    ``(B) $XXXX in outlays of which no more than $XXXX 
                shall be for the nondefense category.''.
    (b) Elimination of Gramm-Rudman Expiration Date.--Section 275 of 
the Balanced Budget and Emergency Deficit Control Act of 1985 is 
repealed.
    (c) Elimination of Emergency Designation and Adjustment.--(1) 
Section 252(e) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 is repealed.
    (2) Section 314(b)(1) of the Congressional Budget Act of 1974 is 
repealed.
    (d) Discretionary Spending Limit Point of Order.--Section 312 of 
the Congressional Budget Act of 1974 (as amended by section 102(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.''.
    (e) 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 2004 for such 
program, project, or activity.''.

SEC. 202. ESTABLISHMENT OF FAMILY BUDGET PROTECTION DISCRETIONARY 
              ACCOUNT.

    The Rules of the House of Representatives are amended by 
redesignating rule XXVIII as rule XXX and by inserting after rule XXVII 
the following new rule:

                             ``RULE XXVIII

           ``family budget protection discretionary account.

    ``1. (a) The chairman of the Committee on the Budget shall maintain 
an account to be known as the `Family Budget Protection Discretionary 
Account'. The Account shall be divided into entries corresponding to 
the subcommittees of the Committee on Appropriations and each entry 
shall consist of the `Family Budget Protection Balance'.
    ``(b) Each entry shall consist only of amounts credited to it under 
paragraph (c). No entry of a negative amount shall be made.
    ``(c) Whenever a Member offers an amendment to an appropriation 
bill to reduce new budget authority in any account, that Member may 
state the portion of such reduction that shall be--
            ``(1) credited to the Family Budget Protection Balance;
            ``(2) used to offset an increase in new budget authority in 
        any other account; or
            ``(3) 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 Family 
Budget Protection Balance, as applicable, if the amendment is agreed 
to.
    ``2. (a) Except as provided by paragraph (b), the chairman of the 
Committee on the Budget shall, upon the engrossment of any 
appropriation bill by the House of Representatives, credit to the entry 
balance amounts of new budget authority and outlays equal to the net 
amounts of reductions in new budget authority and in outlays resulting 
from amendments agreed to by the House to that bill.
    ``(b) When computing the net amounts of reductions in new budget 
authority and in outlays resulting from amendments agreed to by the 
House to an appropriation bill, the chairman of the Committee on the 
Budget 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 Family Budget Protection Balance, or that 
fall within the last sentence of clause 1.
    ``3. The chairman of the Committee on the Budget shall maintain a 
running tally of the amendments adopted reflecting increases and 
decreases of budget authority in the bill as reported. This tally shall 
be available to Members during consideration of any appropriation bill 
by the House.
    ``4. (a) For purposes of enforcing section 302(a) of the 
Congressional Budget Act of 1974, upon the engrossment of any 
appropriation bill by the House, the amount of budget authority and 
outlays calculated pursuant to clause 2(b) shall be counted against the 
302(a) allocation provided to the Committee on Appropriations as if the 
amount calculated pursuant to such clause was included in the bill just 
engrossed.
    ``(b) For purposes of enforcing section 302(b) of the Congressional 
Budget Act of 1974, upon the engrossment of any appropriation bill by 
the House, 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 clause 2(b).
    ``5. As used in this rule, 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 2005 or any subsequent fiscal year or biennium, 
as the case may be.''.

 TITLE III--SPENDING CAPS ON THE GROWTH OF ENTITLEMENTS AND MANDATORIES

SEC. 301. 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 
2005 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 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 first session of the One Hundred Eighth 
Congress), and on the same day as a sequestration (if any) under 
section 251 and section 253, 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) (guaranteed 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. 302. 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 and Tier I Railroad Retirement 
Benefits.--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.
    ``(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 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 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);
                    ``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);
            ``(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.
    ``(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).
    ``(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 Federal 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 Federal 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 Federal 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 
        Federal 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) 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. 303. 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; and
            ``(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) The Guaranteed Student Loan Program.--(1) Any reductions 
which are required to be achieved from the student loan programs 
operated pursuant to part B of title IV of the Higher Education Act of 
1965 under any sequestration order shall be achieved only from loans 
described in paragraphs (2) and (3) by the application of the measures 
described in such paragraphs.
    ``(2) For any loan made during the period beginning on the date 
that a sequestration order takes effect with respect to a fiscal year, 
the rate used in computing the special allowance payment pursuant to 
section 438(b)(2)(A)(iii) of such Act for each of the first four 
special allowance payments for such loan shall be adjusted by reducing 
such rate by the lesser of--
            ``(A) 0.40 percent, or
            ``(B) the percentage by which the rate specified in such 
        section exceeds 3 percent.
    ``(3) For any loan made during the period beginning on the date 
that a sequestration order takes effect with respect to a fiscal year, 
the origination fee which is authorized to be collected pursuant to 
section 438(c)(2) of such Act shall be increased by 0.50 percent.
    ``(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 Federal 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) and (12-3550-0-1-
        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); 
        and
            ``Temporary assistance for needy families (75-1552-0-1-
        609);
    ``(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:
                    ``Black lung benefits (20-8144-0-7-601);
                    ``Central Intelligence Agency retirement and 
                disability system fund (56-3400-0-1-054);
                    ``Comptrollers general retirement system (05-0107-
                0-1-801);
                    ``Foreign service retirement and disability fund 
                (19-8186-0-7-602);
                    ``Judicial survivors' annuities fund (10-8110-0-7-
                602);
                    ``Judicial Officers' Retirement Fund (10-8122-0-7-
                602);
                    ``Claims Judges' Retirement Fund (10-8124-0-7-602);
                    ``Longshoremen's and harborworkers' compensation 
                benefits (16-9971-0-7-601);
                    ``National Oceanic and Atmospheric Administration 
                retirement (13-1450-0-1-306);
                    ``Pensions for former Presidents (47-0105-0-1-802);
                    ``Railroad Industry Pension Fund (60-8011-0-7-601);
                    ``Railroad retirement tier II (60-8011-0-7-601);
                    ``Railroad supplemental annuity pension fund (60-
                8012-0-7-602);
                    ``Retired pay, Coast Guard (69-0241-0-1-403);
                    ``Retirement pay and medical benefits for 
                commissioned officers, Public Health Service (75-0379-
                0-1-551);
                    ``Special benefits, Federal Employees' Compensation 
                Act (16-1521-0-1-600);
                    ``Special benefits for disabled coal miners (75-
                0409-0-1-601); and
                    ``Tax Court judges survivors annuity fund (23-8115-
                0-7-602);
    ``(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:
            ``National Service Life Insurance Fund (36-8132-0-7-701);
            ``Service-Disabled Veterans Insurance Fund (36-4012-0-3-
        701);
            ``Veterans Special Life Insurance Fund (36-8455-0-8-701);
            ``Veterans Reopened Insurance Fund (36-4010-0-3-701);
            ``United States Government Life Insurance Fund (36-8150-0-
        7-701);
            ``Veterans Insurance and Indemnities (36-0120-0-1-701);
            ``Special Therapeutic and Rehabilitation Activities Fund 
        (36-4048-0-3-703);
            ``Canteen Service Revolving Fund (36-4014-0-3-705);
            ``Benefits under chapter 21 of title 38, United States 
        Code, relating to specially adapted housing and mortgage-
        protection life insurance for certain veterans with service-
        connected disabilities (36-0120-0-1-701);
            ``Benefits under section 907 of title 38, United States 
        Code, relating to burial benefits for veterans who die as a 
        result of service-connected disability (36-0155-0-1-701);
            ``Benefits under chapter 39 of title 38, United States 
        Code, relating to automobiles and adaptive equipment for 
        certain disabled veterans and members of the Armed Forces (36-
        0137-0-1-702);
            ``Compensation (36-0153-0-1-701);
            ``Pensions (36-0154-0-1-701);
            ``Benefits under chapter 35 of title 38, United States 
        Code, related to educational assistance for survivors and 
        dependents of certain veterans with service-connected 
        disabilities (36-0137-0-1-702);
            ``Assistance and services under chapter 31 of title 38, 
        United States Code, relating to training and rehabilitation for 
        certain veterans with service-connected disabilities (36-0137-
        0-1-702);
            ``Benefits under subchapters I, II, and III of chapter 37 
        of title 38, United States Code, relating to housing loans for 
        certain veterans and for the spouses and surviving spouses of 
        certain veterans Guaranty and Indemnity Program Account (36-
        1119-0-1-704);
            ``Loan Guaranty Program Account (36-1025-0-1-704); and
            ``Direct Loan Program Account (36-1024-0-1-704).
    ``(h) Military 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) 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 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 total reduction 
        under any such program shall in no case exceed 2 percent under 
        any sequestration order.
            ``(2) Timing of application of reductions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), 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. For purposes of the previous sentence, in 
                the case of inpatient services furnished for an 
                individual, the services shall be considered to be 
                furnished on the date of the individual's discharge 
                from the inpatient facility.
                    ``(B) Payment on the basis of cost reporting 
                periods.--In the case in which payment for services of 
                a provider of services is made under title XVIII of the 
                Social Security Act on a basis relating to the 
                reasonable cost incurred for the services during a cost 
                reporting period of the provider, if a reduction is 
                made under paragraph (1) in payment amounts pursuant to 
                a sequestration order, the reduction shall be applied 
                to payment for costs for such services incurred at any 
                time during each cost reporting period of the provider 
                any part of which occurs after the effective date of 
                the order, but only (for each such cost reporting 
                period) in the same proportion as the fraction of the 
                cost reporting period that occurs 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) No effect on computation of aapcc.--In computing the 
        adjusted average per capita cost for purposes of section 
        1876(a)(4) of the Social Security Act, the Secretary of Health 
        and Human Services shall not take into account any reductions 
        in payment amounts which have been or may be effected under 
        this subtitle.
    ``(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. 304. POINT OF ORDER.

    (a) Entitlement Point of Order.--Section 312 of the Congressional 
Budget Act of 1974 (as amended by sections 102 and 201(d)) is further 
amended by adding at the end the following new subsection:
    ``(j) 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. 305. 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 for medicare) 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''.

SEC. 306. ESTABLISHMENT OF FAMILY BUDGET PROTECTION MANDATORY ACCOUNT.

    The Rules of the House of Representatives (as amended by section 
202) are further amended by inserting after rule XXVIII the following 
new rule:

                              ``RULE XXIX

             ``family budget protection mandatory account.

    ``1. (a) The chairman of the Committee on the Budget shall maintain 
an account to be known as the `Family Budget Protection Mandatory 
Account'. The Account shall be divided into entries corresponding to 
the House committees that received allocations under section 302(a) of 
the Congressional Budget Act of 1974 in the most recently adopted 
concurrent resolution on the budget, except that it shall not include 
the Committee on Appropriations and each entry shall consist of the 
`First Year Family Budget Protection Balance' and the `Five Year Family 
Budget Protection Balance'.
    ``(b) Each entry shall consist only of amounts credited to it under 
paragraph (c). No entry of a negative amount shall be made.
    ``(c) Whenever a Member 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 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--
            ``(1) credited to the First Year Family Budget Protection 
        Balance and the Five Year Family Budget Protection Balance;
            ``(2) used to offset an increase in other new budget 
        authority; or
            ``(3) allowed to remain within the applicable section 
        302(a) allocation.
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 Family Budget Protection Balance and the Five Year Family Budget 
Protection Balance, as applicable, if the amendment is agreed to.
    ``2. (a) Except as provided by paragraph (b), the chairman of the 
Committee on the Budget shall, upon the engrossment of any bill, other 
than an appropriation bill, by the House, 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 the House to that bill.
    ``(b) When computing the net amounts of reductions in budget 
authority and in outlays resulting from amendments agreed to by the 
House to a bill, the chairman of the Committee on the Budget 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 First Year Family Budget Protection Balance and the 
Five Year Family Budget Protection Balance, or that fall within the 
last sentence of clause 1.
    ``3. The chairman of the Committee on the Budget shall maintain a 
running tally of the amendments adopted reflecting increases and 
decreases of budget authority in the bill as reported. This tally shall 
be available to Members during consideration of any bill by the House.
    ``4. For the purposes of enforcing section 302(a) of the 
Congressional Budget Act of 1974, upon the engrossment of any bill, 
other than an appropriation bill, by the House, the amount of budget 
authority and outlays calculated pursuant to paragraph 2(b) shall be 
counted against the 302(a) allocation provided to the applicable 
committee or committees which reported the bill as if the amount 
calculated pursuant to clause 2(b) was included in the bill just 
engrossed.
    ``5. As used in this rule, 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 2005 or any subsequent fiscal year, as the case 
may be.''.

     TITLE IV--COMBATING WASTE, FRAUD, AND ABUSE THROUGH SUNSETTING

SEC. 401. REAUTHORIZATION OF DISCRETIONARY PROGRAMS AND UNEARNED 
              ENTITLEMENTS.

    (a) Fiscal Year 2006.--Effective October 1, 2005, 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 2007.--(1) Effective October 1, 2006, spending 
authority for each authorized 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.
    (2) Effective October 1, 2006, spending authority for each 
unauthorized discretionary spending program (not including high-cost 
discretionary spending programs) is terminated 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. 402. 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. 403. 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 401(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 401(b) is terminated unless such 
spending authority is reauthorized after the last date the spending 
authority was required to be reauthorized under this title.

        TITLE V--JOINT BUDGET RESOLUTIONS AND BIENNIAL BUDGETING

                  Subtitle A--Joint Budget Resolutions

SEC. 501. JOINT BUDGET RESOLUTIONS.

    (a) Definitions.--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 
                congressional budget for the United States Government 
                for a fiscal year as provided in section 301; and
                    ``(B) any other joint resolution revising the 
                congressional budget for the United States Government 
                for a fiscal year as described in section 304.''.
    (b) Joint Resolution on the Budget.--(1) Section 301(a) of the 
Congressional Budget Act of 1974 is amended by striking ``concurrent 
resolution'' each place it appears including in the caption and 
inserting ``joint resolution''.
    (2) Section 301(b) of such Act is amended by striking ``concurrent 
resolution'' each place it appears including in the caption and 
inserting ``joint resolution''.
    (3) Section 301(c) of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.
    (4) Section 301(e) of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.
    (5) Section 301(f) of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.
    (6) Section 301(g) of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.
    (7) Section 301(h) of such Act is amended by striking ``concurrent 
resolution'' and inserting ``joint resolution''.
    (8) Section 301(i) of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.
    (9) The section heading of section 301 of such Act is amended by 
striking ``annual adoption of concurrent'' and inserting ``annual 
adoption of joint''.
    (10) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
striking ``Annual adoption of the concurrent'' in the item relating to 
section 301 and inserting ``Annual adoption of the joint''.
    (11) Section 302 of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.
    (12) Section 303 of such Act, including the heading, is amended by 
striking ``concurrent resolution'' each place it appears and inserting 
``joint resolution''.
    (13) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
striking ``Concurrent'' in the item relating to section 303 and 
inserting ``Joint''.
    (14) Section 304 of such Act is amended by striking ``concurrent 
resolution'', including in the heading, each place it appears and 
inserting ``joint resolution''.
    (15) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
striking ``Concurrent'' in the item relating to section 304 and 
inserting ``Joint''.
    (16) Section 305 of such Act is amended by striking ``concurrent 
resolution'', including in the heading, each place it appears and 
inserting ``joint resolution''.
    (17) Section 308 of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.
    (18) Section 310 of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.
    (19) Section 311 of such Act is amended by striking ``concurrent 
resolution'' each place it appears and inserting ``joint resolution''.

                     Subtitle B--Biennial Budgeting

SEC. 511. 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 Tenth Congress) is as follows:
      

                                       ``First Session
``On or before:                        Action to be 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 estimates to Budget Committees.
 submission.
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
``On or before:                        Action to be completed:
 
February 15..........................  President submits budget review.
Not later than 6 weeks after           Congressional Budget Office submits report to Budget Committees.
 President submits budget review.
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
``On or before:                        Action to be 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. 512. 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) is 
        amended by adding at the end the following new paragraph:
            ``(11) 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''; and
                            (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'';
                    (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(a) 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 Federal 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. 513. AMENDMENTS TO RULES OF 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 11(i) of rule X of the Rules of the House of 
Representatives is amended by striking ``the same or preceding fiscal 
year''.
    (f) 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''.
    (g) 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''.
    (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 year in which such biennium begins''.

SEC. 514. 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 (11) of section 3 of the Congressional Budget and 
        Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.
    (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 Ninth 
Congress, the President shall transmit 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. 515. 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(11) of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.

SEC. 516. MULTIYEAR AUTHORIZATIONS.

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

              ``multiyear authorizations of appropriations

    ``Sec. 316. (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 315 the following new item:

``Sec. 316. Multiyear authorizations of appropriations.''.

SEC. 517. 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, 2005'';
            (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, 2005, shall be updated and revised by 
                September 30, 2008''; 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, 2005, 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 2008, 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)--
                            (i) by striking ``section 1105(a)(29)'' and 
                        inserting ``section 1105(a)(28)''; and
                            (ii) 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 (f) 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, 2005'';
            (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, 2005, shall be 
        updated and revised by September 30, 2008'';
            (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, 2005, 
        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.''.
    (h) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on March 1, 2007.
            (2) Agency actions.--Effective on and after the date of 
        enactment of this Act, each agency shall take such actions as 
        necessary to prepare and submit any plan or report in 
        accordance with the amendments made by it.

SEC. 518. 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. 519. 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.

SEC. 520. REPORT ON TWO-YEAR FISCAL PERIOD.

    Not later than 180 days after the date of enactment of this Act, 
the Director of the Office of Management and Budget shall--
            (1) determine the impact and feasibility of changing the 
        definition of a fiscal year and the budget process based on 
        that definition to a 2-year fiscal period with a biennial 
        budget process based on the 2-year period; and
            (2) report the findings of the study to the Committees on 
        the Budget of the House of Representatives and the Senate and 
        the Committee on Rules of the House of Representatives.

SEC. 521. SPECIAL TRANSITION PERIOD FOR THE 109TH CONGRESS.

    (a) President's Budget Submission for Fiscal Year 2006.--The budget 
submission of the President pursuant to section 1105(a) of title 31, 
United States Code, for fiscal year 2006 shall include the following:
            (1) An identification of the budget accounts for which an 
        appropriation should be made for each fiscal year of the fiscal 
        year 2006-2007 biennium.
            (2) Budget authority that should be provided for each such 
        fiscal year for the budget accounts identified under paragraph 
        (1).
    (b) Review and Recommendations of the Committees on 
Appropriations.--The Committee on Appropriations of the House of 
Representatives and the Senate shall review the items included pursuant 
to subsection (a) in the budget submission of the President for fiscal 
year 2006 and include its recommendations thereon in its views and 
estimates made under section 301(d) of the Congressional Budget Act of 
1974 within 6 weeks of that budget submission.
    (c) Actions by the Committees on the Budget.--(1) The Committee on 
the Budget of the House of Representatives and the Senate shall review 
the items included pursuant to subsection (a) in the budget submission 
of the President for fiscal year 2006 and the recommendations submitted 
by the Committee on Appropriations of its House pursuant to subsection 
(b) included in its views and estimates made under section 301(d) of 
the Congressional Budget Act of 1974.
    (2) The report of the Committee on the Budget of each House 
accompanying the concurrent resolution on the budget for fiscal year 
2006 and the joint explanatory statement of managers accompanying such 
resolution shall also include allocations to the Committee on 
Appropriations of its House of total new budget authority and total 
outlays (which shall be deemed to be made pursuant to section 302(a) of 
the Congressional Budget Act of 1974 for purposes of budget enforcement 
under section 302(f)) for fiscal year 2005 from which the Committee on 
Appropriations may report regular appropriation bills for fiscal year 
2006 that include funding for certain accounts for each of fiscal years 
2006 and 2007.
    (3) The report of the Committee on the Budget of each House 
accompanying the concurrent resolution on the budget for fiscal year 
2006 and the joint explanatory statement of managers accompanying such 
resolution shall also include the assumptions upon which such 
allocations referred to in paragraph (2) are based.
    (d) GAO Programmatic Oversight Assistance.--(1) During the first 
session of the 109th Congress the committees of the House of 
Representatives and the Senate are directed to work with the 
Comptroller General of the United States to develop plans to transition 
program authorizations to a multi-year schedule.
    (2) During the 109th Congress, the Comptroller General of the 
United States will continue to provide assistance to the Congress with 
respect to programmatic oversight and in particular will assist the 
committees of Congress in designing and conforming programmatic 
oversight procedures for the fiscal year 2006-2007 biennium.
    (e) CBO Authorization Report.--On or before January 15, 2006, the 
Director of the Congressional Budget Office, after consultation with 
the appropriate committees of the House of Representatives and Senate, 
shall submit to the Congress a report listing (1) all programs and 
activities funded during fiscal year 2006 for which authorizations for 
appropriations have not been enacted for that fiscal year and (2) all 
programs and activities funded during fiscal year 2006 for which 
authorizations for appropriations will expire during that fiscal year, 
fiscal year 2007, or fiscal year 2008.
    (f) President's Budget Submission for Fiscal Year 2007.--The budget 
submission of the President pursuant to section 1105(a) of title 31, 
United States Code, for fiscal year 2007 shall include an evaluation 
of, and recommendations regarding, the transitional biennial budget 
process for the fiscal year 2006-2007 biennium that was carried out 
pursuant to this section.
    (g) CBO Transitional Report.--On or before March 31, 2006, the 
Director of the Congressional Budget Office shall submit to Congress an 
evaluation of, and recommendations regarding, the transitional biennial 
budget process for the fiscal year 2006-2007 biennium that was carried 
out pursuant to this section.

             Subtitle C--Prevention of Government Shutdown

SEC. 531. 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 for 
each fiscal year in a biennium does not become law prior to the 
beginning of such fiscal year or a joint resolution making continuing 
appropriations is not in effect, there is appropriated, out of any 
moneys 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 House or 
        Senate passed appropriation bill 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,
            ``(D) the rate provided in the budget submission of the 
        President under section 1105(a) of title 31, United States 
        Code, for the fiscal year in question, or
            ``(E) 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, and related agencies 
        programs.
            ``(2) The Departments of Commerce, Justice, and State, the 
        judiciary, and related agencies.
            ``(3) The Department of Defense.
            ``(4) The government of the District of Columbia and other 
        activities chargeable in whole or in part against the revenues 
        of the District.
            ``(5) The Departments of Labor, Health and Human Services, 
        and Education, and related agencies.
            ``(6) The Department of Housing and Urban Development, and 
        sundry independent agencies, boards, commissions, corporations, 
        and offices.
            ``(7) Energy and water development.
            ``(8) Foreign assistance and related programs.
            ``(9) The Department of the Interior and related agencies.
            ``(10) Military construction.
            ``(11) The Departments of Transportation and Treasury, and 
        independent agencies.
            ``(12) The legislative branch.
            ``(13) The Department of Homeland Security.''.
    (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 D--Effective Date

SEC. 532. EFFECTIVE DATE.

    (a) In General.--Except as provided by subsection (b) and by 
sections 520, 521, and 532, this title and the amendments made by it 
shall take effect on January 1, 2007, and shall apply to budget 
resolutions and appropriations for the biennium beginning with fiscal 
year 2008.
    (b) Subtitle C.--Subtitle C and the amendments made by it shall 
apply with respect to fiscal years beginning with fiscal year 2005.

                TITLE VI--FURTHER ENFORCEMENT AMENDMENTS

SEC. 601. SUPER-MAJORITY POINTS OF ORDER.

    (a) Elimination of Exception.--Section 303 of the Congressional 
Budget Act of 1974 is amended by striking ``In General.--'' in 
subsection (a) and by striking subsections (b) and (c).
    (b) Super-Majority Point of Order.--(1)(A) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``303,'' 
before ``305(b)(2),'', by inserting ``312(g), (h), (i), (j), and (k),'' 
before ``313,'', and by inserting ``316,'' before ``904(c),''.
    (B) Section 904(c) of the Congressional Budget Act of 1974 is 
amended by striking ``three-fifths'' each place it appears and 
inserting ``two-thirds''.
    (2)(A) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``303,'' before ``305(b)(2),'', by inserting 
``312(g), (h), (i), (j), and (k),'' before ``313,'', and by inserting 
``316,'' before ``904(c),''.
    (B) Section 904(d) of the Congressional Budget Act of 1974 is 
amended by striking ``three-fifths'' each place it appears and 
inserting ``two-thirds''.
    (3)(A) Sections 904(c)(2) and (d)(3) of the Congressional Budget 
Act of 1974 are amended by striking ``311(a),''.
    (B) Sections 904(c)(1) and (d)(2) of the Congressional Budget Act 
of 1974 are amended by inserting ``311(a),'' after ``310(d)(2),''.
    (4) Section 904(e) of the Congressional Budget Act of 1974 is 
amended by striking ``2002'' and inserting ``2006''.

SEC. 602. BUDGET RESOLUTION ENFORCEMENT POINT OF ORDER.

    (a) Entitlement Point of Order.--Section 312 of the Congressional 
Budget Act of 1974 (as amended by sections 102, 201(d), and 304(a)) is 
further amended by adding at the end the following new subsection:
    ``(k) Budget Resolution Enforcement Point of Order.--It shall not 
be in order in the House of Representatives or the Senate to consider 
any concurrent resolution on the budget for a fiscal year, or amendment 
thereto or conference report thereon, that--
            ``(1) provides for a deficit for the fiscal year of the 
        resolution or any ensuing fiscal year included in such 
        resolution that exceeds the maximum deficit amount for such 
        fiscal year set forth in section 253(h) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985;
            ``(2) is not consistent with the discretionary spending 
        limits set forth in section 251(c) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985; or
            ``(3) 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. 603. POINT OF ORDER WAIVER PROTECTION.

    Clause 6(c) of rule XIII of the Rules of the House of 
Representatives is amended by striking the period at the end of 
subparagraph (2) and inserting ``; or'' and by adding at the end the 
following new subparagraph:
            ``(3) a rule or order that would waive the provisions of 
        section 303, 311(a), 312(g), 312(h), 312(i), 312(j), or 312(k) 
        of the Congressional Budget Act of 1974 or of section 402 of 
        the Family Budget Protection Act of 2003.''.
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