[COMMITTEE PRINT] 

COMPILATION OF LAWS AND RULES 

RELATING TO THE CONGRESSIONAL 

BUDGET PROCESS 

AS AMENDED THROUGH AUGUST 3, 2012 

COMMITTEE ON THE BUDGET 

U.S. HOUSE OF REPRESENTATIVES 

AUGUST 2012 

Serial No. CP–3 

Printed for the use of the Committee on the Budget 

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1 

75–001 2012

[COMMITTEE PRINT] 

COMPILATION OF LAWS AND RULES 

RELATING TO THE CONGRESSIONAL 

BUDGET PROCESS 

AS AMENDED THROUGH AUGUST 3, 2012 

COMMITTEE ON THE BUDGET 

U.S. HOUSE OF REPRESENTATIVES 

AUGUST 2012 

Serial No. CP–3 

Printed for the use of the Committee on the Budget 
(II) 

COMMITTEE ON THE BUDGET 

PAUL RYAN, Wisconsin, Chairman 

SCOTT GARRETT, New Jersey 

MICHAEL K. SIMPSON, Idaho 

JOHN CAMPBELL, California 

KEN CALVERT, California 

W. TODD AKIN, Missouri 

TOM COLE, Oklahoma 

TOM PRICE, Georgia 

TOM MCCLINTOCK, California 

JASON CHAFFETZ, Utah 

MARLIN A. STUTZMAN, Indiana 

JAMES LANKFORD, Oklahoma 

DIANE BLACK, Tennessee 

REID J. RIBBLE, Wisconsin 

BILL FLORES, Texas 

MICK MULVANEY, South Carolina 

TIM HUELSKAMP, Kansas 

TODD C. YOUNG, Indiana 

JUSTIN AMASH, Michigan 

TODD ROKITA, Indiana 

FRANK C. GUINTA, New Hampshire 

ROB WOODALL, Georgia 

CHRIS VAN HOLLEN, Maryland, 

Ranking Minority Member 

ALLYSON Y. SCHWARTZ, Pennsylvania 

MARCY KAPTUR, Ohio 

LLOYD DOGGETT, Texas 

EARL BLUMENAUER, Oregon 

BETTY MCCOLLUM, Minnesota 

JOHN A. YARMUTH, Kentucky 

BILL PASCRELL, JR., New Jersey 

MICHAEL M. HONDA, California 

TIM RYAN, Ohio 

DEBBIE WASSERMAN SCHULTZ, Florida 

GWEN MOORE, Wisconsin 

KATHY CASTOR, Florida 

HEATH SHULER, North Carolina 

KAREN BASS, California 

SUZANNE BONAMICI, Oregon 

PROFESSIONAL STAFF

AUSTIN SMYTHE, Staff Director 

THOMAS S. KAHN, Minority Staff Director 
(iii) 

INTRODUCTION 

This compilation includes the relevant Congressional procedures, statutes, rules, scorekeeping guidelines and other matter related to the budget making process of the United States. Congress 

estimates the spending, revenue, deficit and debt levels of the 

budget of the United States for each fiscal year. The fiscal years 

after the budget year are also included in that budget. A ‘‘budget 

year’’ is defined in law as the fiscal year encompassing October 1 

through September 30 of the calendar year in which a session of 

Congress first meets which occurs early in January of each year. 

The consideration, adoption, and enforcement of spending, revenue, deficit and debt limit legislation each year must comply with 

the parameters set by the budget. 

Each year, Congress must adopt a budget. This takes the form 

as a ‘‘Concurrent Resolution on the Budget’’ for a fiscal year. This 

budget resolution, though its terms are set in law in the Congressional Budget Act of 1974, is tantamount, in application, to the 

Rules of both the House of Representatives and the Senate. 

Statutory controls in law are enforcement procedures that uphold spending, revenue, deficits and debt levels after legislation has 

been adopted. If that legislation causes those levels to be exceeded, 

certain changes automatically take effect, a procedure known as sequestration. 

The Congressional Budget and Impoundment Control Act of 1974 

The Congressional Budget and Impoundment Control Act of 

1974 (Public Law 93–344; 2 U.S.C. 621 et seq.) is the law that sets 

the foundation for the congressional budget process. It established 

the Committees on the Budget in the House of Representatives and 

the Senate and the Congressional Budget Office. It outlines their 

functions and duties, and established the requirements for adopting the concurrent resolution on the budget for each fiscal year. 

Balanced Budget and Emergency Deficit Control Act of 1985 

The Balanced Budget and Emergency Deficit Control Act of 

1985 (BBEDCA), also known as the Gramm-Rudman-Hollings Act, 

was enacted as title II of Public Law 99–177 (2 U.S.C. 900 et seq.). 

It was included in the law increasing the statutory debt limit. 

BBEDCA included several significant budget process changes including: the requirement of one budget resolution each year (rather 

than two), the requirement that budget resolution reports include 

committee allocations of spending, and points of order to enforce 

budget levels in an adopted budget resolution. BBEDCA notably established deficit targets for fiscal years 1985 through 1990 and se-
iv 

questration procedures to enforce those targets. The enforcement 

provisions were revised pursuant to the Balanced Budget and 

Emergency Deficit Control Reaffirmation Act of 1987 following the 

ruling in Bowsher v. Synar (478 U.S. 714) (1986) that found some 

aspects unconstitutional. However, in 1990, Congress effectively replaced deficit-target enforcement by adopting discretionary spending limits and Pay-As-You-Go Rules pursuant to the Budget Enforcement Act of 1990. 

Budget Enforcement Act of 1990 

The Budget Enforcement Act of 1990 (BEA) was enacted as 

title XIII of the Omnibus Budget Reconciliation Act of 1990 (Public 

Law 101–508). The BEA added new points of order and procedures 

to the budget process, which are included in this compilation, such 

as freestanding provisions on the off-budget status of Social Security. It also incorporated a modified version of the Senate’s reconciliation Rule on extraneous matter (Byrd Rule) into the CBA. 

The BEA also established Pay-As-You-Go (PAYGO) procedures, 

which required that direct spending increases and revenue decreases be offset with either direct spending decreases or revenue 

increases. In addition, the BEA established discretionary spending 

limits, which placed caps on appropriations. These provisions replaced the deficit-target procedures of BBEDCA. BEA enforcement 

was extended twice—first under title XIV of the Omnibus Budget 

Reconciliation Act of 1993 (Public Law 103–66) and last under title 

X of the Balanced Budget Act of 1997 (Public Law 105–33)—before 

ultimately terminating in 2002. 

Unfunded Mandates Reform Act of 1995 

The Unfunded Mandates Reform Act of 1995 (Public Law 104– 

4) established procedures to consider federal unfunded mandates 

imposed on state and local governments (intergovernmental mandates) and the private sector. Sections of the Unfunded Mandates 

Reform Act are incorporated in title IV of the CBA. This compilation also includes several selected freestanding provisions of the 

Unfunded Mandates Reform Act. 

Line Item Veto Act of 1996 

The Line Item Veto Act of 1996 (Public Law 104–130) established procedures to allow the President to cancel specific budgetary provisions in laws signed by the President without the approval of Congress. The United States Supreme Court found the 

Line Item Veto Act of 1996 unconstitutional in Clinton, et al. v. 

City of New York, et al., 118 S.Ct. 2091 (1998). 

Emergency Economic Stabilization Act of 2008 

In 2008, Congress enacted the ‘‘Emergency Economic Stabilization Act of 2008’’ (EESA) (Public Law 110–343). It provided for the 

purchase of troubled mortgage-related assets by the Federal government pursuant to the Troubled Assets Relief Program (TARP). 

EESA included several budget-related provisions, such as providing 

that activities conducted under TARP be estimated under the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.) modified to 

use a risk-adjusted discount rate. It also included a requirement 
v 

that the Office of Management and Budget submit a proposal five 

years after enactment of the Act enabling Congress to recoup from 

the financial industry any losses to taxpayers and reporting requirements for the Office of Management and Budget and the Congressional Budget Office related to the Act. 

Statutory Pay-As-You-Go Act of 2010 

In 2010, Congress enacted the ‘‘Statutory Pay-As-You-Go Act of 

2010.’’ (Public Law 111–139). It included new methods of enforcing 

certain sections of the ‘‘Balanced Budget and Emergency Deficit 

Control Act of 1985.’’ It amended certain sections of the Balanced 

Budget and Emergency Deficit Control Act of 1985 such as the 

sequestrable base and established pay as you go requirements. 

Budget Control Act of 2011 

The Budget Control Act of 2011 authorized an increase in the 

public debt limit of at least $2.1 trillion (and up to $2.4 trillion 

under certain conditions). The increase was subject to a disapproval process requiring the support of two-thirds of each chamber to prevent a debt limit increase. 

The Act established statutory caps on discretionary spending 

through 2021. It established a Joint Select Committee on Deficit 

Reduction. This select committee was to report a bill reducing the 

federal deficit by $1.2 trillion over a 10-year period ending in fiscal 

year 2021. The legislation from the joint committee would be considered under procedures that prevent amendment and limit debate. 

Budget Submitted to Congress by the President 

The Congressional Budget Act of 1974 requires the President 

to submit a budget by the first Monday in February of each calendar year. Chapter 11 of Title 31 of the United States Code sets 

out the specific items that the President must include in the budget 

submission. 

Scorekeeping 

The Congressional Budget Office, the Office of Management 

and Budget, and the House and Senate Budget Committees follow 

specific Rules for determining the budgetary effects of legislation 

known as scorekeeping guidelines. These guidelines are reviewed 

regularly but are only changed if Congress and the Administration 

are in agreement on proposed changes. 

Advance Appropriations 

Since 2001, the annual concurrent resolution on the budget has 

included limits on the amounts and uses of advance appropriations. 

This includes an overall spending level and a set number of accounts allowed to receive advance budget authority. each set out in 

the report or joint statement of managers of the budget resolution, 

as applicable. 
vi 

C O N T E N T S 

Page 

Congressional Budget and Impoundment Control Act of 1974 

Sec. 1. Short titles; table of contents .............................................................. 3 

Sec. 2. Declaration of purposes ........................................................................ 5 

Sec. 3. Definitions ............................................................................................. 5 

Title I—Establishment of House and Senate Budget Committees: 

Sec. 101. Budget Committee of the House of Representatives .............. 8 

Sec. 102. Budget Committee of the Senate ............................................. 9 

Title II—Congressional Budget Office: 

Sec. 201. Establishment of office .............................................................. 11 

Sec. 202. Duties and functions ................................................................. 13 

Sec. 203. Public access to budget data ..................................................... 16 

Title III—Congressional Budget Process: 

Sec. 300. Timetable ................................................................................... 18 

Sec. 301. Annual adoption of concurrent resolution on the budget ....... 18 

Sec. 302. Committee allocations ............................................................... 22 

Sec. 303. Concurrent resolution on the budget must be adopted before 

budget-related legislation is considered ............................................... 26 

Sec. 304. Permissible revisions of concurrent resolutions on the budget ............................................................................................................. 27 

Sec. 305. Provisions relating to the consideration of concurrent resolutions on the budget ............................................................................. 27 

Sec. 306. Legislation dealing with congressional budget must be handled by Budget Committees .................................................................. 30 

Sec. 307. House committee action on all appropriation bills to be 

completed by June 10 ............................................................................ 30 

Sec. 308. Reports, summaries, and projections of congressional budget 

actions ..................................................................................................... 30 

Sec. 309. House approval of regular appropriation bills ........................ 32 

Sec. 310. Reconciliation ............................................................................. 33 

Sec. 311. Budget-related legislation must be within appropriate levels ............................................................................................................ 36 

Sec. 312. Determinations of points of order ............................................ 38 

Sec. 313. Extraneous matter in reconciliation legislation ...................... 39 

Sec. 314. Adjustments ............................................................................... 41 

Sec. 315. Effect of adoption of a special order of business in the 

House of Representatives ...................................................................... 43 

Title IV—Additional Provisions to Improve Fiscal Procedures: 

Part A—General Provisions: 

Sec. 401. Budget-related legislation not subject to appropriations 44 

Sec. 402. Analysis by Congressional Budget Office ......................... 45 

Sec. 403. Jurisdiction of Appropriations Committees ..................... 46 

Sec. 404. Study by the General Accounting Office of forms of 

federal financial commitment that are not reviewed annually 

by Congress ..................................................................................... 46 

Sec. 405. Off-budget agencies, programs, and activities ................. 46 

Sec. 406. Member user group ............................................................ 47 
Page

vii 

Congressional Budget and Impoundment Control Act of 1974—Continued 

Title IV—Additional Provisions to Improve Fiscal Procedures—Continued 

Part B—Federal Mandates: 

Sec. 421. Definitions .......................................................................... 47 

Sec. 422. Exclusions ........................................................................... 50 

Sec. 423. Duties of congressional committees .................................. 50 

Sec. 424. Duties of the Director; statements on bills and joint 

resolutions other than appropriations bills and joint resolutions ................................................................................................. 52 

Sec. 425. Legislation subject to point of order ................................. 54 

Sec. 426. Provisions relating to the House of Representatives ...... 56 

Sec. 427. Requests to the Congressional Budget Office from senators ................................................................................................. 57 

Sec. 428. Clarification of application ................................................ 57 

Title V—Credit Reform: 

Sec. 500. Short title ................................................................................... 59 

Sec. 501. Purposes ..................................................................................... 59 

Sec. 502. Definitions .................................................................................. 59 

Sec. 503. OMB and CBO analysis, coordination and review ................. 61 

Sec. 504. Budgetary treatment ................................................................. 61 

Sec. 505. Authorizations ........................................................................... 63 

Sec. 506. Treatment of deposit insurance and agencies and other 

insurance programs ............................................................................... 64 

Sec. 507. Effect on other laws .................................................................. 65 

Title VI—Amendments to Budget and Accounting Act of 1921 [Repealed] 

Title VII—Program Review and Evaluation: 

Sec. 701. Review and evaluation of standing committees ...................... 67 

Sec. 702. Review and evaluation by the Comptroller General .............. 67 

Sec. 703. Continuing study of additional budget reform proposals ....... 67 

Title VIII—Fiscal and Budgetary Information and Controls: 

Sec. 801. Amendment to Legislative Reorganization Act of 1970 ......... 69 

Sec. 802. Changes in functional categories ............................................. 69 

Title IX—Miscellaneous Provisions; Effective Dates: 

Sec. 901. Amendments to the Rules of the House .................................. 70 

Sec. 902. Conforming amendments to the Standing Rules of the Senate ........................................................................................................... 70 

Sec. 903. Amendments to the Legislative Reorganization Act of 1946 . 71 

Sec. 904. Exercise of rulemaking powers ................................................ 71 

Sec. 905. Effective dates ........................................................................... 72 

Title X—Impoundment Control: 

Part A—General Provisions: 

Sec. 1001. Disclaimer ......................................................................... 73 

Sec. 1002. Amendment to Antideficiency Act .................................. 73 

Sec. 1003. Repeal of existing impoundment reporting provision ... 73 

Part B—Congressional consideration of proposed rescissions, reservations, and deferrals of budget authority: 

Sec. 1011. Definitions ........................................................................ 73 

Sec. 1012. Rescission of budget authority ........................................ 74 

Sec. 1013. Proposed deferrals of budget authority .......................... 75 

Sec. 1014. Transmission of messages; publication .......................... 76 

Sec. 1015. Reports by Comptroller General ..................................... 77 

Sec. 1016. Suits by Comptroller General ......................................... 77 

Sec. 1017. Procedure in House and Senate ...................................... 78 
Page

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Balanced Budget and Emergency Deficit Control Act of 1985 

Part C—Emergency Powers To Eliminate Deficits in Excess Of Maximum 

Deficit Amount: 

Sec. 250. Table of contents; statement of budget enforcement through 

sequestration; definitions ...................................................................... 83 

Sec. 251. Enforcing discretionary spending limits .................................. 86 

Sec. 251A. Enforcement of budget goal ................................................... 91 

Sec. 252. Enforcing pay-as-you-go ............................................................ 95 

Sec. 253. Enforcing deficit targets ........................................................... 97 

Sec. 254. Reports and orders .................................................................... 100 

Sec. 255. Exempt programs and activities .............................................. 104 

Sec. 256. General and special sequestration rules ................................. 110 

Sec. 257. The baseline ............................................................................... 116 

Sec. 258. Suspension in the event of war or low growth ........................ 118 

Sec. 258A. Modification of Presidential order ......................................... 120 

Sec. 258B. Flexibility among defense programs, projects, and activities ........................................................................................................... 123 

Sec. 258C. Special reconciliation process ................................................ 126 

Part D—Budgetary Treatment of Social Security: 

Sec. 261. Treatment of Trust Funds ........................................................ 128 

Part E—Miscellaneous and Related Provisions: 

Sec. 271. Waivers and suspensions; rulemaking powers ....................... 128 

Sec. 272. Restoration of trust fund investments ..................................... 128 

Sec. 273. Revenue estimates ..................................................................... 128 

Sec. 274. Judicial review ........................................................................... 128 

Sec. 275. Effective dates [Repealed] ........................................................ 130 

Budget Enforcement Act of 1990 

Sec. 13001. Short title; table of contents ........................................................ 133 

Subtitle A—Amendments to the Balanced Budget and Emergency Deficit 

Control Act of 1985 and Related Amendments: 

Part I—Amendments to the Balanced Budget and Emergency Deficit 

Control Act of 1985: 

Sec. 13101. Sequestration .................................................................. 133 

Part II—Related Amendments: 

Sec. 13111. Temporary amendments to the Congressional Budget 

Act of 1974 ...................................................................................... 133 

Sec. 13112. Conforming amendments ............................................... 133 

Subtitle B—Permanent Amendments to the Congressional Budget and 

Impoundment Control Act of 1974: 

Sec. 13201. Credit accounting .................................................................. 133 

Sec. 13202. Codification of provision regarding revenue estimates ...... 133 

Sec. 13203. Debt increase as measure of deficit; display of federal 

retirement trust fund balance .............................................................. 133 

Sec. 13204. Pay-As-You-Go Procedures ................................................... 133 

Sec. 13205. Amendments to section 303 .................................................. 134 

Sec. 13206. Amendments to section 308 .................................................. 134 

Sec. 13207. Standardization of language regarding points of order ..... 134 

Sec. 13208. Standardization additional deficit control provisions ......... 134 

Sec. 13209. Codification of precedent with regard to conference reports and amendments between the Houses ....................................... 134 

Sec. 13210. Superseded deadlines and conforming changes .................. 134 

Sec. 13211. Definitions .............................................................................. 134 

Sec. 13212. Savings transfers between fiscal years ................................ 134 

Sec. 13213. Conforming change to title 31 .............................................. 134 

Sec. 13214. The Byrd Rule on extraneous matter in reconciliation ...... 134 
Page

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Budget Enforcement Act of 1990—Continued 

Subtitle C—Social Security: 

Sec. 13301. Off-budget status of OASDI trust funds .............................. 134 

Sec. 13302. Protection of OASDI trust funds in the House of Representatives ............................................................................................ 135 

Sec. 13303. Social security firewall and point of order in the Senate .. 136 

Sec. 13304. Report to the Congress by the Board of Trustees of 

the OASDI trust funds regarding the actuarial balance of trust 

funds ....................................................................................................... 137 

Sec. 13305. Exercise of rulemaking power .............................................. 137 

Sec. 13306. Effective date ......................................................................... 137 

Subtitle D—Treatment of Fiscal Year 1991 Sequestration [Omitted] 

Subtitle E—Government-Sponsored Enterprises: 

Sec. 13501. Financial safety and soundness of government-sponsored 

enterprises .............................................................................................. 137 

Postal Service Omnibus Budget Reconciliation Act of 1989 

Title IV—Civil Service and Postal Service Programs: 

Sec. 4001. Budgetary treatment of the postal service fund ................... 141 

The Postal Accountability and Enhancement Act 

Sec. 401. Postal Service Competitive Products Fund .................................... 142 

Statutory Pay-As-You-Go Act of 2010 

Title I—Statutory Pay-As-You-Go Act of 2010: 

Sec. 1. Short Title ...................................................................................... 145 

Sec. 2. Purpose ........................................................................................... 145 

Sec. 3. Definitions and applications ......................................................... 145 

Sec. 4. Paygo estimates and paygo scorecards ........................................ 146 

Sec. 5. Annual report and sequestration order ....................................... 153 

Sec. 6. Calculating a sequestration .......................................................... 153 

Sec. 7. Adjustment for current policies .................................................... 154 

Sec. 8. Application of BBEDCA ................................................................ 159 

Sec. 9. Technical Corrections .................................................................... 159 

Sec. 10. Conforming Amendments ........................................................... 159 

Sec. 11. Exempt Programs and Activities ............................................... 161 

Sec. 12. Determinations and points of order ........................................... 167 

Sec. 13. Limitation on changes to the Social Security Act ..................... 167 

Title II—Elimination of Duplicative and Wasteful Spending: 

Sec. 21. Identification, consolidation, and elimination of duplicative 

government programs ............................................................................ 168 

Budget Control Act of 2011 

Sec. 1. Short title; table of contents ................................................................ 171 

Sec. 2. Severability ........................................................................................... 171 

Title I—Ten-Year Discretionary Caps With Sequester: 

Sec. 101. Enforcing discretionary spending limits .................................. 172 

Sec. 102. Definitions .................................................................................. 177 

Sec. 103. Reports and orders .................................................................... 178 

Sec. 104. Expiration .................................................................................. 178 

Sec. 105. Amendments to the Congressional Budget and Impoundment Control Act of 1974 ...................................................................... 178 

Sec. 106. Senate Budget Enforcement ..................................................... 179 

Title II—Vote on the Balanced Budget Amendment: 

Sec. 201. Vote on the balanced budget amendment ............................... 182 

Sec. 202. Consideration by the other house ............................................ 182 

Title III—Debt Ceiling Disapproval Process: 

Sec. 301. Debt ceiling disapproval process .............................................. 184 

Sec. 302. Enforcement of budget goal ...................................................... 189 
Page

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Budget Control Act of 2011—Continued 

Title IV-Joint Select Committee on Deficit Reduction: 

Sec. 401. Establishment of joint select committee .................................. 193 

Sec. 402. Expedited consideration of joint committee recommendations ........................................................................................................ 197 

Sec. 403. Funding ...................................................................................... 200 

Sec. 404. Rulemaking ................................................................................ 200 

Title V-Pell Grant and Student Loan Program Changes: 

Sec. 501. Federal Pell Grants ................................................................... 201 

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

to graduate and professional students ................................................. 201 

Sec. 503. Termination of direct loan repayment incentives ................... 201 

Sec. 504. Inapplicability of Title IV negotiated rulemaking and master calendar exception ........................................................................... 202 

Title 31 of the United States Code 

Chapter 11. The Budget and Fiscal, Budget, and Program Information: 

§1101. Definitions ...................................................................................... 205 

§1102. Fiscal Year ..................................................................................... 206 

§1103. Budget Ceiling ............................................................................... 206 

§1104. Budget and appropriations authority of the President .............. 206 

§1105. Budget contents and submission to Congress ............................. 207 

§1106. Supplemental budget estimates and changes ............................. 214 

§1107. Deficiency and supplemental appropriations .............................. 215 

§1108. Preparation and submission of appropriations requests to the 

President ................................................................................................ 215 

§1109. Current programs and activities estimates ................................. 216 

§1110. Year-ahead requests for authorizing legislation ......................... 217 

§1111. Improving economy and efficiency ............................................... 217 

§1112. Fiscal, budget, and program information .................................... 217 

§1113. Congressional information ............................................................ 218 

§1114. [Repealed] ...................................................................................... 220 

§1115. Federal government and agency performance plans .................. 220 

§1116. Agency performance reporting ..................................................... 223 

§1117. Exemption ...................................................................................... 225 

§1118. Pilot projects for performance goals ............................................. 225 

§1119. Pilot projects for performance budgeting .................................... 226 

§1120. Federal government and agency priority goals ........................... 226 

§1121. Quarterly priority progress reviews and use of performance 

information ............................................................................................. 228 

§1122. Transparency of programs, priority goals, and results .............. 229 

§1123. Chief operation officers ................................................................. 231 

§1124. Performance improvement officers and the performance improvement council .................................................................................. 232 

§1125. Elimination of unnecessary agency reporting ............................. 234 

Chapter 13 of Title 31, United States Code: 

§1341. Limitations on expending and obligating amounts .................... 235 

§1342. Limitation on voluntary services ................................................. 235 

Chapter 15 of Title 31, United States Code: 

§1517. Prohibited obligations and expenditures ..................................... 237 

Chapter 31 of Title 31, United States Code: 

§3101. Public debt limit ............................................................................ 238 

§3101A. Presidential modification of the debt ceiling ............................ 238 

Chapter 33 of Title 31, United States Code: 

§3321. Disbursing authority in the executive branch ............................ 244 

Unfunded Mandates Reform Act of 1995 

Sec. 1. Short title .............................................................................................. 247 
Page

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Unfunded Mandates Reform Act of 1995—Continued 

Sec. 2. Purposes ................................................................................................ 247 

Sec. 3. Definitions ............................................................................................. 248 

Sec. 4. Exclusions ............................................................................................. 248 

Sec. 5. Agency Assistance ................................................................................ 249 

Title I—Legislative Accountability and Reform: 

Sec. 101. Legislative mandate accountability and reform ..................... 249 

Sec. 102. Assistance to committees and studies ..................................... 249 

Sec. 103. Cost of regulations .................................................................... 249 

Sec. 104. Repeal of certain analysis by Congressional Budget Office ... 249 

Sec. 105. Consideration for Federal funding ........................................... 249 

Sec. 106. Impact on local governments .................................................... 249 

Sec. 107. Enforcement in the House of Representatives ........................ 250 

Sec. 108. Exercise of rulemaking powers ................................................ 250 

Sec. 109. Authorization of appropriations ............................................... 251 

Sec. 110. Effective date ............................................................................. 251 

Title II—Regulatory Accountability and Reform: 

Sec. 201. Regulatory process .................................................................... 251 

Sec. 202. Statements to accompany significant regulatory actions ....... 251 

Sec. 203. Small government agency plan ................................................ 252 

Sec. 204. State, local, and tribal government input ............................... 252 

Sec. 205. Least burdensome option or explanation required ................. 253 

Sec. 206. Assistance to the Congressional Budget Office ....................... 253 

Sec. 207. Pilot program on small government flexibility ....................... 254 

Sec. 208. Annual statements to Congress on agency compliance .......... 254 

Sec. 209. Effective date ............................................................................. 254 

Title III—Review of Federal Mandates: 

Sec. 301. Baseline study of costs and benefits ........................................ 254 

Sec. 302. Report on Federal mandates by advisory commission on 

intergovernmental relations .................................................................. 254 

Sec. 303. Special authorities of advisory commission ............................. 256 

Sec. 304. Annual report to Congress regarding Federal court rulings . 257 

Sec. 305. Definition ................................................................................... 257 

Sec. 306. Authorization of appropriations ............................................... 257 

Title IV—Judicial Review: 

Sec. 401. Judicial review ........................................................................... 257 

Rules of the House of Representatives 

Rule X: Organization of Committees: 

Clause 1(d)(1), (2) and (3). Budget Act responsibilities of each standing committee ......................................................................................... 261 

Clause 4(f). Views and estimates of each standing committee for 

the concurrent resolution ...................................................................... 261 

Clause 11(c)(3). Views and estimates of Permanent Select Committee 

on Intelligence ........................................................................................ 262 

Rule XII: Receipt and Referral of Measures and Matters: 

Clause 7(c)(1) and (2). Constitutional Authority Statement .................. 262 

Rule XIII: Calendars and Committee Reports: 

Clause 1. Calendars .................................................................................. 262 

Clause 2. Filing and Printing of reports .................................................. 263 

Clause 3. Content of reports ..................................................................... 264 

Clause 4. Availability of Reports .............................................................. 267 

Clause 5. Privileged reports, generally .................................................... 267 

Clause 6. Privileged reports by the Committee on Rules ...................... 268 

Clause 7. Resolutions of inquiry .............................................................. 269 
Page

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Rules of the House of Representatives—Continued 

Rule XVIII: The Committee of the Whole House on the State of the 

Union: 

Clause 10. Concurrent resolution on the budget .................................... 269 

Rule XXI: Restrictions on Certain Bills: 

Clause 1. Reservation of certain points of order ..................................... 270 

Clause 2. General appropriation bills and amendments ........................ 270 

Clause 3. Transportation obligation limitations ..................................... 271 

Clause 4. Appropriations on legislative bills ........................................... 271 

Clause 5. Tax and tariff measures and amendments ............................. 272 

Clause 6. Designation of public works ..................................................... 272 

Clause 7. Reconciliation directives ........................................................... 272 

Clause 8. Application of Budget Act points of order .............................. 273 

Clause 9. Earmarks ................................................................................... 273 

Clause 10. Cut-As-You-Go ........................................................................ 275 

Clause 11. Notice Requirements .............................................................. 276 

Rule XXIX: General Provisions: 

Clause 4. Authoritative guidance provided by the chair of the committee ...................................................................................................... 276 

Rules of the Senate 

Selected Budgetary Procedures set forth in S. Con. Res. 21 (110th Congress): 

Sec. 201. Pay-as-you-go point of order in the Senate ............................. 279 

Sec. 202. Senate point of order against reconciliation legislation that 

would increase the deficit or reduce a surplus .................................... 280 

Sec. 203. Senate point of order against legislation increasing longterm deficits ........................................................................................... 281 

Sec. 204. Emergency legislation ............................................................... 281 

Sec. 205. Extension of enforcement of budgetary points of order in 

the Senate .............................................................................................. 283 

Sec. 206. Point of order against advance appropriations ....................... 283 

Sec. 208. Application of previous allocations in the Senate ................... 285 

Sec. 209. Senate point of order against provisions of appropriations 

legislation that constitute changes in mandatory programs with 

net costs .................................................................................................. 285 

Selected Budgetary Procedures set forth in S. Con. Res. 70 (110th Congress): 

Sec. 311. Senate point of order against legislation increasing longterm deficits ........................................................................................... 287 

Sec. 314. Senate point of order against provisions of appropriations 

legislation that constitute changes in mandatory programs with 

net costs .................................................................................................. 288 

Selected Budgetary Procedures set forth in S. Con. Res. 13 (111th Congress): 

Sec. 403. Emergency Legislation .............................................................. 290 

Sec. 404. Point of order against legislation increasing short-term 

deficit ...................................................................................................... 292 

Sec. 405. Point of order against certain legislation related to surface 

transportation funding .......................................................................... 292 

Sec. 411. Oversight of government performance .................................... 293 

Sec. 412. Budgetary treatment of certain discretionary administrative 

expenses .................................................................................................. 293 

Sec. 413. Application and effect of changes in allocations and aggregates ........................................................................................................ 293 

Sec. 414. Adjustments to reflect changes in concepts and definitions .. 294 
Page

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Rules of the Senate—Continued 

Selected Budgetary Procedures set forth in S. Con. Res. 13 (111th Congress)—Continued 

Sec. 415. Exercise of rulemaking powers ................................................ 294 

Senate Procedures of the Budget Control Act of 2011 (Public Law 112- 

25): 

Sec. 106. Senate Budget enforcement ...................................................... 294 

Jurisdiction of the Committee on the Budget of the House of Representatives 

Rule X: Organization of Committees: 

Clause 1. Committees and their legislative jurisdictions ....................... 299 

Clause 1(e). Committee on the Budget .................................................... 299 

Clause 3(b). Special oversight functions .................................................. 299 

Clause 4(b). Additional functions of committees ..................................... 300 

Jurisdiction: In General ................................................................................... 300 

Debate on H. Res. 6, Rules Package for the 104th Congress Congressional 

Record—House Memorandum of Understanding ....................................... 301 

Jurisdiction of the Committee on the Budget of the United States 

Senate 

S.Res.445 (108th Congress): Jurisdiction of Senate Budget Committee: 

Sec. 101(d). Jurisdiction of Budget Committee ....................................... 307 

Sec. 101(e). OMB Nominees ..................................................................... 307 

Rule XXV: Standing Committees: 

Clause 1(e). Committee on the Budget .................................................... 308 

Unanimous Consent Agreement of January 30, 1975 ................................... 308 

Unanimous Consent Agreement of August 4, 1977 ....................................... 309 

Scorekeeping 

Rule 1. Classifications of appropriations ........................................................ 313 

Rule 2. Outlays prior ........................................................................................ 313 

Rule 3. Direct spending programs ................................................................... 313 

Rule 4. Transfer of budget authority from a mandatory account to a 

discretionary account .................................................................................... 314 

Rule 5. Permissive transfer authority ............................................................ 314 

Rule 6. Reappropriations ................................................................................. 314 

Rule 7. Advance appropriations ...................................................................... 314 

Rule 8. Rescissions and transfers of unobligated balances ........................... 314 

Rule 9. Delay of obligations ............................................................................. 314 

Rule 10. Contingent legislation ....................................................................... 315 

Rule 11. Scoring purchases, lease-purchases, capital leases, and operating 

leases .............................................................................................................. 315 

Rule 12. Write-offs of uncashed checks, unredeemed food stamps, and 

similar instruments ...................................................................................... 317 

Rule 13. Reclassification after an agreement ................................................. 317 

Rule 14. Scoring of receipt increases or direct spending reductions for 

additional administration or program management expenses .................. 317 

Rule 15. Asset sales .......................................................................................... 317 

Rule 16. Indefinite borrowing authority and limits on outstanding debt .... 318 

Rule 17. Pell scoring rule ................................................................................. 318 

Appendices 

Appendix A—Line Item Veto Act of 1996 ....................................................... 321 

Appendix B—Concurrent resolutions on the budget ..................................... 335 

Appendix C—Deeming measures for the concurrent resolution on the 

budget ............................................................................................................ 337 

Appendix D—Emergency Economic Stabilization Act of 2008 ..................... 339 

Appendix E—Rule XXVIII ............................................................................... 343 
Page

xiv 

Appendices—Continued 

Appendix F—The concurrent resolution on the budget for fiscal year 

2013 ................................................................................................................ 345 

Appendix G—The Constitution of the United States .................................... 357 

Appendix H—Medicare Prescription Drug, Improvement, and Modernization Act of 2003 ............................................................................................. 359 
1 

CONGRESSIONAL BUDGET AND IMPOUNDMENT 

CONTROL ACT OF 1974 

Public Law 93–344, July 12 88 Stat 297 

Balanced Budget and Emergency Deficit Control Act of 1985; Public Law 99–177, Title II, Part A; December 12, 1985; 99 Stat. 

1037, 1039. 

An Act increasing the statutory limit on the public debt; Public 

Law 100–119, Title II; September 29, 1987; 101 Stat. 754, 784. 

Budget Enforcement Act of 1990; Public Law 101–508, Title XIII, 

Subtitle A, Part II, and Subtitle B; November 5, 1990; 104 

Stat. 1388–573, 1388–602, 1388–609. 

Omnibus Budget Reconciliation Act of 1993; Public Law 103–66, 

Title XIV; August 10, 1993; 107 Stat. 312, 683. 

Violent Crime Control and Law Enforcement Act of 1994; Public 

Law 103–322, Title XXXI; September 13, 1994; 108 Stat. 1796, 

2102. 

Unfunded Mandates Reform Act of 1995; Public Law 104–4, Title 

I; March 22, 1995; 109 Stat. 50. 

Contract with America Advancement Act of 1996; Public Law 104– 

121, 110 Stat. 847. 

Balanced Budget Act of 1997; Public Law 105–33; August 5, 1997; 

111 Stat. 251. 

Transportation Equity Act for the 21st Century; Public Law 105– 

178; June 9, 1998; 112 Stat. 488. 
2 

TEA 21 Restoration Act; Public Law 105–206; July 22, 1998; 115 

Stat. 865. 

Statutory Pay-As-You-Go Act of 2010; Public Law 111–139; February 12, 2010; 124 Stat. 8. 

Budget Control Act of 2011; Public Law 112–25; August 2, 2011; 

125 Stat. 240. 
3 

1The United States Supreme Court declared Part C of title X, the ‘‘Line Item Veto Act of 

1996’’ unconstitutional. 

Congressional Budget and Impoundment 

Control Act of 1974 

As Amended Through Public Law 112–78, 

Enacted December 23, 2011 

AN ACT To establish a new congressional budget process; to establish Committees 

on the Budget in each House; to establish a Congressional Budget Office; to establish a procedure providing congressional control over the impoundment of funds 

by the executive branch; and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, 

SHORT TITLES; TABLE OF CONTENTS. 

SECTION 1. ø2 U.S.C. 621 note¿ (a) SHORT TITLES.—This Act 

may be cited as the ‘‘Congressional Budget and Impoundment Control Act of 1974’’. Titles I through IX may be cited as the ‘‘Congressional Budget Act of 1974’’. Parts A and B of title X may be cited 

as the ‘‘Impoundment Control Act of 1974’’. Part C of title X may 

be cited as the ‘‘Line Item Veto Act of 1996’’. 1

(b) TABLE OF CONTENTS.— 

Sec. 1. Short titles; table of contents. 

Sec. 2. Declaration of purposes. 

Sec. 3. Definitions. 

TITLE I—ESTABLISHMENT OF HOUSE AND SENATE BUDGET COMMITTEES 

Sec. 101. Budget Committee of the House. 

Sec. 102. Budget Committee of the Senate. 

TITLE II—CONGRESSIONAL BUDGET OFFICE 

Sec. 201. Establishment of Office. 

Sec. 202. Duties and functions. 

Sec. 203. Public access to budget data. 

TITLE III—CONGRESSIONAL BUDGET PROCESS 

Sec. 300. Timetable. 

Sec. 301. Annual adoption of concurrent resolution on the budget. 

Sec. 302. Committee allocations. 

Sec. 303. Concurrent resolution on the budget must be adopted before budget-related legislation is considered. 

Sec. 304. Permissible revisions of concurrent resolutions on the budget. 

Sec. 305. Prvisions relating to consideration of concurrent resolutions on the 

budget. 

Sec. 306. Legislation dealing with congressional budget must be handled by budget 

committees. 

Sec. 307. House committee action on all appropriation bills to be completed by June 

10. 

Sec. 308. Reports, summaries, and projections of congressional budget actions. 

Sec. 309. House approval of regular appropriation bills. 
Sec. 1 CONGRESSIONAL BUDGET ACT OF 1974 4 

2The ‘‘General Accounting Office’’ was renamed the ‘‘Government Accountability Office’’ by 

the GAO Human Capital Reform Act of 2004 (Public Law 108–271, 118 Stat. 811, enacted 

July 7, 2004). 

Sec. 310. Reconciliation. 

Sec. 311. Budget-related legislation must be within appropriate levels. 

Sec. 312. Determinations and points of order. 

Sec. 313. Extraneous matter in reconciliation legislation. 

Sec. 314. Adjustments. 

Sec. 315. Effect of adoption of a special order of business in the House of Representatives. 

TITLE IV—ADDITIONAL PROVISIONS TO IMPROVE FISCAL PROCEDURES 

PART A—GENERAL PROVISIONS

Sec. 401. Budget-related legislation not subject to appropriations. 

Sec. 402. Analyses by Congressional Budget Office. 

* * * * * * * 

Sec. 404. Study by the General Accounting Office2 of forms of Federal financial 

commitment that are not reviewed annually by Congress. 

Sec. 405. Off-budget agencies, programs, and activities. 

Sec. 406. Member user group. 

PART B—FEDERAL MANDATES

Sec. 421. Definitions. 

Sec. 422. Exclusions. 

Sec. 423. Duties of congressional committees. 

Sec. 424. Duties of the Director; statements on bills and joint resolutions other 

than appropriations bills and joint resolutions. 

Sec. 425. Legislation subject to point of order. 

Sec. 426. Provisions relating to the House of Representatives. 

Sec. 427. Requests to the Congressional Budget Office from Senators. 

Sec. 428. Clarification of application. 

TITLE V—CREDIT REFORM 

Sec. 500. Short title. 

Sec. 501. Purposes. 

Sec. 502. Definitions. 

Sec. 503. OMB and CBO analysis, coordination, and review. 

Sec. 504. Budgetary treatment. 

Sec. 505. Authorizations. 

Sec. 506. Treatment of deposit insurance and agencies and other insurance programs. 

Sec. 507. Effect on other laws. 

øTITLE VI—REPEALED¿ 

TITLE VII—PROGRAM REVIEW AND EVALUATION 

* * * * * * * 

Sec. 703. Continuing study of additional budget reform proposals. 

* * * * * * * 

TITLE IX—MISCELLANEOUS PROVISIONS; EFFECTIVE DATES 

* * * * * * * 

Sec. 904. Exercise of rulemaking powers. 

* * * * * * * 

TITLE X—IMPOUNDMENT CONTROL 

PART A—GENERAL PROVISIONS

Sec. 1001. Disclaimer. 

* * * * * * * 
5 Sec. 3 CONGRESSIONAL BUDGET ACT OF 1974 

3Part C, the Line Item Veto, was declared unconstitutional by the Supreme Court of the 

United States. 

PART B—CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS, 

RESERVATIONS, AND DEFERRALS OF BUDGET AUTHORITY

Sec. 1011. Definitions. 

Sec. 1012. Rescission of budget authority. 

Sec. 1013. Proposed deferrals of budget authority. 

Sec. 1014. Transmission of messages; publication. 

Sec. 1015. Reports by Comptroller General. 

Sec. 1016. Suits by Comptroller General. 

Sec. 1017. Procedure in House and Senate. 

PART C—LINE ITEM VETO 3

Sec. 1021. Line item veto authority. 

Sec. 1022. Special messages. 

Sec. 1023. Cancellation effective unless disapproved. 

Sec. 1024. Deficit reduction. 

Sec. 1025. Expedited congressional consideration of disapproval bills. 

Sec. 1026. Definitions. 

Sec. 1027. Identification of limited tax benefits. 

DECLARATION OF PURPOSES

SEC. 2. ø2 U.S.C. 621¿ The Congress declares that it is essential— 

(1) to assure effective congressional control over the budgetary process; 

(2) to provide for the congressional determination each 

year of the appropriate level of Federal revenues and expenditures; 

(3) to provide a system of impoundment control; 

(4) to establish national budget priorities; and 

(5) to provide for the furnishing of information by the executive branch in a manner that will assist the Congress in discharging its duties. 

DEFINITIONS

SEC. 3. ø2 U.S.C. 622¿ IN GENERAL.—For purposes of this 

Act— 

(1) The terms ‘‘budget outlays’’ and ‘‘outlays’’ mean, with 

respect to any fiscal year, expenditures and net lending of 

funds under budget authority during such year. 

(2) BUDGET AUTHORITY AND NEW BUDGET AUTHORITY.— 

(A) IN GENERAL.—The term ‘‘budget authority’’ means 

the authority provided by Federal law to incur financial 

obligations, as follows: 

(i) provisions of law that make funds available for 

obligation and expenditure (other than borrowing authority), including the authority to obligate and expend the proceeds of offsetting receipts and collections; 

(ii) borrowing authority, which means authority 

granted to a Federal entity to borrow and obligate and 

expend the borrowed funds, including through the 

issuance of promissory notes or other monetary credits; 
Sec. 3 CONGRESSIONAL BUDGET ACT OF 1974 6 

(iii) contract authority, which means the making 

of funds available for obligation but not for expenditure; and 

(iv) offsetting receipts and collections as negative 

budget authority, and the reduction thereof as positive 

budget authority. 

(B) LIMITATIONS ON BUDGET AUTHORITY.—With respect 

to the Federal Hospital Insurance Trust Fund, the Supplementary Medical Insurance Trust Fund, the Unemployment Trust Fund, and the railroad retirement account, 

any amount that is precluded from obligation in a fiscal 

year by a provision of law (such as a limitation or a benefit 

formula) shall not be budget authority in that year. 

(C) NEW BUDGET AUTHORITY.—The term ‘‘new budget 

authority’’ means, with respect to a fiscal year— 

(i) budget authority that first becomes available 

for obligation in that year, including budget authority 

that becomes available in that year as a result of a reappropriation; or 

(ii) a change in any account in the availability of 

unobligated balances of budget authority carried over 

from a prior year, resulting from a provision of law 

first effective in that year; 

and includes a change in the estimated level of new budget 

authority provided in indefinite amounts by existing law. 

(3) The term ‘‘tax expenditures’’ means those revenue 

losses attributable to provisions of the Federal tax laws which 

allow a special exclusion, exemption, or deduction from gross 

income or which provide a special credit, a preferential rate of 

tax, or a deferral of tax liability, and the term ‘‘tax expenditures budget’’ means an enumeration of such tax expenditures. 

(4) The term ‘‘concurrent resolution on the budget’’ 

means— 

(A) a concurrent resolution setting forth the congressional budget for the United States Government for a fiscal year as provided in section 301; and 

(B) any other concurrent resolution revising the congressional budget for the United States Government for a 

fiscal year as described in section 304. 

(5) The term ‘‘appropriation Act’’ means an Act referred to 

in section 105 of title 1, United States Code. 

(6) The term ‘‘deficit’’ means, with respect to a fiscal year, 

the amount by which outlays exceeds receipts during that year. 

(7) The term ‘‘surplus’’ means, with respect to a fiscal year, 

the amount by which receipts exceeds outlays during that year. 

(8) The term ‘‘government-sponsored enterprise’’ means a 

corporate entity created by a law of the United States that— 

(A)(i) has a Federal charter authorized by law; 

(ii) is privately owned, as evidenced by capital 

stock owned by private entities or individuals; 

(iii) is under the direction of a board of directors, 

a majority of which is elected by private owners; 

(iv) is a financial institution with power to— 
7 Sec. 3 CONGRESSIONAL BUDGET ACT OF 1974 

(I) make loans or loan guarantees for limited 

purposes such as to provide credit for specific borrowers or one sector; and 

(II) raise funds by borrowing (which does not 

carry the full faith and credit of the Federal Government) or to guarantee the debt of others in unlimited amounts; and 

(B)(i) does not exercise powers that are reserved to the 

Government as sovereign (such as the power to tax or to 

regulate interstate commerce); 

(ii) does not have the power to commit the Government financially (but it may be a recipient of a loan 

guarantee commitment made by the Government); and 

(iii) has employees whose salaries and expenses 

are paid by the enterprise and are not Federal employees subject to title 5 of the United States Code. 

(9) The term ‘‘entitlement authority’’ means— 

(A) the authority to make payments (including loans 

and grants), the budget authority for which is not provided 

for in advance by appropriation Acts, to any person or government if, under the provisions of the law containing that 

authority, the United States is obligated to make such 

payments to persons or governments who meet the requirements established by that law; and 

(B) the food stamp program. 

(10) The term ‘‘credit authority’’ means authority to incur 

direct loan obligations or to incur primary loan guarantee commitments. 

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

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

Budget and Emergency Deficit Control Act of 1985. 
Sec. 101 CONGRESSIONAL BUDGET ACT OF 1974 8 

4This section established original composition and duties of the Committees of the House and 

the Senate. This included the responsibility for the Committees to make a continuing study on 

the effects of budget outlays and to devise methods coordinating tax policies with budget outlays. 5Through the 112th Congress, House membership requirements related to the Committee on 

Appropriations and the Committee on Ways and Means are the same. An additional Member 

from the Rules Committee is required under House Rules. 6 As of the 112th Congress, the limitation on service on the Budget Committee was four out 

of six successive Congresses, with an extra Congress allowed to the Chairman and Ranking 

Member. 7The composition of the House Budget Committee has been changed through House resolutions adopted to establish or amend the rules of the House of Representatives for each Congress. 8So in original; it should read ‘‘subpoena.’’ 

9So in original; it should read ‘‘Subpoenas.’’ 

Title I—Establishment of House and 

Senate Budget Committees 4

BUDGET COMMITTEE OF THE HOUSE OF REPRESENTATIVES

SEC. 101.5 (a) Clause 1 of Rule X of the Rules of the House of 

Representatives is amended by redesignating paragraph (e) 

through (u) as paragraphs (f) through (v), respectively, and by inserting the following new paragraph: 

‘‘(e) Committee on the Budget, to consist of twenty-three Members as follows: 

‘‘(1) five Members who are members of the Committee on 

Appropriations; 

‘‘(2) five Members who are members of the Committee on 

Ways and Means; 

‘‘(3) eleven Members who are members of other standing 

committees; 

‘‘(4) one Member from the leadership of the majority party; 

and 

‘‘(5) one Member from the leadership of the minority 

party.’’ 

No Member shall serve as a member of the Committee on 

the Budget during more than two Congresses in any period of 

five6 successive Congresses beginning after 1974 (disregarding 

for this purpose any service performed as a member of such 

committee for less than a full session in any Congress). All selections of Members to serve on the committee shall be made 

without regard to seniority.7

(b) Rule X of the Rules of the House of Representatives is 

amended by adding at the end thereof the following new clause: 

‘‘6. For carrying out the purposes set forth in clause 5 of Rule 

XI, the Committee on the Budget or any subcommittee thereof is 

authorized to sit and act at such times and places within the 

United States, whether the House is in session, has recessed, or 

has adjourned, to hold such hearings, to require the attendance of 

such witnesses and the production of such books or papers or documents or vouchers by subpena8 or otherwise, and to take such testimony and records, as it deems necessary. Subpenas9 may be 

issued over the signature of the chairman of the committee or of 

any member of the committee designated by him; and may be 

served by any person designated by such chairman or member. The 
9 Sec. 102 CONGRESSIONAL BUDGET ACT OF 1974 

10 ‘‘The separate subpoena authority conferred upon the committee by section 101(b) has been 

superseded by the general grant of subpoena authority conferred upon all committees by clause 

2(m) of Rule XI (H. Res. 988), 93d Congress p.34470.’’ 11This section established the Committee on the Budget of the Senate. 

chairman of the committee, or any member thereof, may administer oaths to witnesses.10

(c) Rule XI of the Rules of the House of Representatives is 

amended by redesignating clauses 5 through 33 as clauses 6 

through 34, respectively, and by inserting after clause 4 the following new clause: 

‘‘5. COMMITTEE ON THE BUDGET

‘‘(a) All concurrent resolutions on the budget (as defined in section 3(a)(4) of the Congressional Budget Act of 1974) and other 

matters to be referred to the Committee under titles III and IV of 

that Act. 

‘‘(b) The Committee shall have the duty— 

‘‘(1) to report matters required to be reported by it under 

titles III and IV of the Congressional Budget Act of 1974; 

‘‘(2) to make continuing studies of on budget outlays of relevant existing and proposed legislation and to report the results of such studies to the House on a recurring basis; 

‘‘(3) to request and evaluate continuing studies of tax expenditures, to devise methods of coordinating tax expenditures, 

policies, and programs with direct budget outlays, and to report the results of such studies to the House on a recurring 

basis; and 

‘‘(4) to review on a continuing basis, the conduct by the 

Congressional Budget Office of its functions and duties.’’ 

BUDGET COMMITTEE OF THE SENATE

SEC. 102. BUDGET COMMITTEE OF THE SENATE11— 

(a) Paragraph 1 of Rule XXV of the Standing Rules of the Senate is amended by adding at the end thereof the following new subparagraph: 

‘‘(r)(1) Committee on the Budget, to which committee shall be 

referred all concurrent resolutions on the budget (as defined in section 3(a)(4) of the Congressional Budget Act of 1974 and all other 

matters required to be referred to that committee under titles III 

and IV of that Act, and messages, petitions, memorials, and other 

matters relating thereto. 

‘‘(2) Such committee shall have the duty— 

‘‘(A) to report the matters required to be reported by 

it under titles III and IV of the Congressional Budget Act 

of 1974; 

‘‘(B) to make continuing studies of the effect on budget 

outlays of relevant existing and proposed legislation and to 

report the results of such studies to the Senate on a recurring basis; 

‘‘(C) to request and evaluate continuing studies of tax 

expenditures, to devise methods of coordinating tax expenditures, policies, and programs with direct budget outlays, and to report the results of such studies to the Senate 

on a recurring basis; and 
Sec. 102 CONGRESSIONAL BUDGET ACT OF 1974 10 

‘‘(D) to review on a continuing basis, the conduct by 

the Congressional Budget Office of its functions and duties.’’ 

(b) The table contained in paragraph 2 of rule XXV of the 

Standing Rules of the Senate is amended by inserting after— 

‘‘Banking, Housing and Urban Affairs ...........15’’ 

the following: 

‘‘Budget .............................................................15’’ 

(c) Paragraph 6 of rule XXV of the Standing Rules of the Senate is amended by adding at the end thereof the following new subparagraph: 

‘‘(h) For purposes of the sentence of subparagraph (a), 

membership of the Committee on the Budget shall not be 

taken into account until that date occurring during the first 

session of the Ninety-fifth Congress, upon which the appointment of the majority and minority party members of the standing committees of the Senate is initially completed.’’ 
11 Sec. 201 CONGRESSIONAL BUDGET ACT OF 1974 

Title II—Congressional Budget Office 

ESTABLISHMENT OF OFFICE

SEC. 201. ø2 U.S.C. 601¿ (a) IN GENERAL.— 

(1) There is established an office of the Congress to be 

known as the Congressional Budget Office (hereinafter in this 

title referred to as the ‘‘Office’’). The Office shall be headed by 

a Director; and there shall be a Deputy Director who shall perform such duties as may be assigned to him by the Director 

and, during the absence or incapacity of the Director or during 

a vacancy in that office, shall act as Director. 

(2) The Director shall be appointed by the Speaker of the 

House of Representatives and the President pro tempore of the 

Senate after considering recommendations received from the 

Committees on the Budget of the House and the Senate, without regard to political affiliation and solely on the basis of his 

fitness to perform his duties. The Deputy Director shall be appointed by the Director. 

(3) The term of office of the Director shall be 4 years and 

shall expire on January 3 of the year preceding each Presidential election. Any individual appointed as Director to fill a 

vacancy prior to the expiration of a term shall serve only for 

the unexpired portion of that term. An individual serving as 

Director at the expiration of a term may continue to serve until 

his successor is appointed. Any Deputy Director shall serve 

until the expiration of the term of office of the Director who appointed him (and until his successor is appointed), unless sooner removed by the Director. 

(4) The Director may be removed by either House by resolution. 

(5)(A) The Director shall receive compensation at an annual rate of pay that is equal to the lower of— 

(i) the highest annual rate of compensation of any officer of the Senate; or 

(ii) the highest annual rate of compensation of any officer of the House of Representatives. 

(B) The Deputy Director shall receive compensation at an 

annual rate of pay that is $1,000 less than the annual rate of 

pay received by the Director, as determined under subparagraph (A). 

(b) PERSONNEL.—The Director shall appoint and fix the compensation of such personnel as may be necessary to carry out the 

duties and functions of the Office. All personnel of the Office shall 

be appointed without regard to political affiliation and solely on the 

basis of their fitness to perform their duties. The Director may prescribe the duties and responsibilities of the personnel of the Office, 

and delegate to them authority to perform any of the duties, powers, and functions imposed on the Office or on the Director. For 

purposes of pay (other than pay of the Director and Deputy Director) and employment benefits, rights, and privileges, all personnel 

of the Office shall be treated as if they were employees of the 

House of Representatives. 
Sec. 201 CONGRESSIONAL BUDGET ACT OF 1974 12 

12The ‘‘General Accounting Office’’ was renamed the ‘‘Government Accountability Office’’ by 

the GAO Human Capital Reform Act of 2004 (Public Law 108–271, 118 Stat. 811, enacted July 

7, 2004). 

(c) EXPERTS AND CONSULTANTS.—In carrying out the duties 

and functions of the Office, the Director may procure the temporary 

(not to exceed one year) or intermittent services of experts or consultants or organizations thereof by contract as independent contractors, or, in the case of individual experts or consultants, by employment at rates of pay not in excess of the daily equivalent of the 

highest rate of basic pay payable under the General Schedule of 

section 5332 of title 5, United States Code. 

(d) RELATIONSHIP TO EXECUTIVE BRANCH.—The Director is authorized to secure information, data, estimates, and statistics directly from the various departments, agencies, and establishments 

of the executive branch of Government and the regulatory agencies 

and commissions of the Government. All such departments, agencies, establishments, and regulatory agencies and commissions 

shall furnish the Director any available material which he determines to be necessary in the performance of his duties and functions (other than material the disclosure of which would be a violation of law). The Director is also authorized, upon agreement with 

the head of any such department, agency, establishment, or regulatory agency or commission, to utilize its services, facilities, and 

personnel with or without reimbursement; and the head of each 

such department, agency, establishment, or regulatory agency or 

commission is authorized to provide the Office such services, facilities, and personnel. 

(e) RELATIONSHIP TO OTHER AGENCIES OF CONGRESS.—In carrying out the duties and functions of the Office, and for the purpose 

of coordinating the operations of the Office with those of other congressional agencies with a view to utilizing most effectively the information, services, and capabilities of all such agencies in carrying 

out the various responsibilities assigned to each, the Director is authorized to obtain information, data, estimates, and statistics developed by the General Accounting Office,12 and the Library of Congress, and (upon agreement with them) to utilize their services, facilities, and personnel with or without reimbursement. The Comptroller General, and the Librarian of Congress are authorized to 

provide the Office with the information, data, estimates, and statistics, and the services, facilities, and personnel, referred to in the 

preceding sentence. 

(f) REVENUE ESTIMATES.—For the purposes of revenue legislation which is income, estate and gift, excise, and payroll taxes (i.e., 

Social Security), considered or enacted in any session of Congress, 

the Congressional Budget Office shall use exclusively during that 

session of Congress revenue estimates provided to it by the Joint 

Committee on Taxation. During that session of Congress such revenue estimates shall be transmitted by the Congressional Budget 

Office to any committee of the House of Representatives or the Senate requesting such estimates, and shall be used by such Committees in determining such estimates. The Budget Committees of the 

Senate and House shall determine all estimates with respect to 

scoring points of order and with respect to the execution of the purposes of this Act. 
13 Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974 

(g) APPROPRIATIONS.—There are authorized to be appropriated 

to the Office for each fiscal year such sums as may be necessary 

to enable it to carry out its duties and functions. Until sums are 

first appropriated pursuant to the preceding sentence, but for a period not exceeding 12 months following the effective date of this 

subsection, the expenses of the Office shall be paid from the contingent fund of the Senate, in accordance with the paragraph relating 

to the contingent fund of the Senate under the heading ‘‘UNDER 

LEGISLATIVE’’ in the Act of October 1, 1888 (28 Stat. 546; 2 

U.S.C. 68), and upon vouchers approved by the Director. 

DUTIES AND FUNCTIONS

SEC. 202. ø2 U.S.C. 602¿ (a) ASSISTANCE TO BUDGET COMMITTEES.—It shall be the primary duty and function of the Office to 

provide to the Committees on the Budget of both Houses information which will assist such committees in the discharge of all matters within their jurisdictions, including (1) information with respect to the budget, appropriation bills, and other bills authorizing 

or providing new budget authority or tax expenditures, (2) information with respect to revenues, receipts, estimated future revenues 

and receipts, and changing revenue conditions, and (3) such related 

information as such Committees may request. 

(b) ASSISTANCE TO COMMITTEES ON APPROPRIATIONS, WAYS AND

MEANS, AND FINANCE.—At the request of the Committee on Appropriations of either House, the Committee on Ways and Means of 

the House of Representatives, or the Committee on Finance of the 

Senate, the Office shall provide to such Committee any information 

which will assist it in the discharge of matters within its jurisdiction, including information described in clauses (1) and (2) of subsection (a) and such related information as the Committee may request. 

(c) ASSISTANCE TO OTHER COMMITTEES AND MEMBERS.— 

(1) At the request of any other committee of the House of 

Representatives or the Senate or any joint committee of the 

Congress, the Office shall provide to such committee or joint 

committee any information compiled in carrying out clauses (1) 

and (2) of subsection (a), and, to the extent practicable, such 

additional information related to the foregoing as may be requested. 

(2) At the request of any committee of the Senate or the 

House of Representatives, the Office shall, to the extent practicable, consult with and assist such committee in analyzing 

the budgetary or financial impact of any proposed legislation 

that may have— 

(A) a significant budgetary impact on State, local, or 

tribal governments; 

(B) a significant financial impact on the private sector; 

or 

(C) a significant employment impact on the private 

sector. 

(3) At the request of any Member of the House or Senate, 

the Office shall provide to such member any information compiled in carrying out clauses (1) and (2) of subsection (a), and, 
Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974 14 

to the extent available, such additional information related to 

the foregoing as may be requested. 

(d) ASSIGNMENT OF OFFICE PERSONNEL TO COMMITTEES AND

JOINT COMMITTEES.—At the request of the Committee on the Budget of either House, personnel of the Office shall be assigned, on a 

temporary basis, to assist such committee. At the request of any 

other committee of either House or any joint committee of the Congress, personnel of the Office may be assigned, on a temporary 

basis, to assist such committee or joint committee with respect to 

matters directly related to the applicable provisions of subsection 

(b) or (c). 

(e) REPORTS TO BUDGET COMMITTEES.— (1) On or before February 15 of each year, the Director 

shall submit to the Committees on the Budget of the House of 

Representatives and the Senate, a report for the fiscal year 

commencing on October 1 of that year, with respect to fiscal 

policy, including (A) alternative levels of total revenues, total 

new budget authority, and total outlays (including related surpluses and deficits), (B) the levels of tax expenditures under 

existing law, taking into account projected economic factors 

and any changes in such levels based on proposals in the budget submitted by the President for such fiscal year, and (C) a 

statement of the levels of budget authority and outlays for each 

program assumed to be extended in the baseline, as provided 

in section 257(b)(2)(A) and for excise taxes assumed to be extended under section 257(b)(2)(C) of the Balanced Budget and 

Emergency Deficit Control Act of 1985. Such report shall also 

include a discussion of national budget priorities, including alternative ways of allocating new budget authority and budget 

outlays for such fiscal year among major programs or functional categories, taking into account how such alternative allocations will meet major national needs and affect balanced 

growth and development of the United States. 

(2) The Director shall from time to time submit to the 

Committees on the Budget of the House of Representatives and 

the Senate such further reports (including reports revising the 

report required by paragraph (1)) as may be necessary or appropriate to provide such Committees with information, data, 

and analyses for the performance of their duties and functions. 

(3) On or before January 15 of each year, the Director, 

after consultation with the appropriate committees of the 

House of Representatives and Senate, shall submit to the Congress a report listing (A) all programs and activities funded 

during the fiscal year ending September 30 of that calendar 

year for which authorizations for appropriations have not been 

enacted for that fiscal year, and (B) all programs and activities 

for which authorizations for appropriations have been enacted 

for the fiscal year ending September 30 of that calendar year, 

but for which no authorizations for appropriations have been 

enacted for the fiscal year beginning October 1 of that calendar 

year. 

(f) USE OF COMPUTERS AND OTHER TECHNIQUES.—The Director 

may equip the Office with up-to-date computer capability (upon approval of the Committee on House Oversight of the House of Rep-
15 Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974 

resentatives and the Committee on Rules and Administration of 

the Senate), obtain the services of experts and consultants in computer technology, and develop techniques for the evaluation of 

budgetary requirements. 

(g) STUDIES.— 

(1) CONTINUING STUDIES.—The Director of the Congressional Budget Office shall conduct continuing studies to enhance comparisons of budget outlays, credit authority, and tax 

expenditures. 

(2) FEDERAL MANDATE STUDIES.— 

(A) At the request of any Chairman or ranking member of the minority of a Committee of the Senate or the 

House of Representatives, the Director shall, to the extent 

practicable, conduct a study of a legislative proposal containing a Federal mandate. 

(B) In conducting a study on intergovernmental mandates under subparagraph (A), the Director shall— 

(i) solicit and consider information or comments 

from elected officials (including their designated representatives) of State, local, or tribal governments as 

may provide helpful information or comments; 

(ii) consider establishing advisory panels of elected 

officials or their designated representatives, of State, 

local, or tribal governments if the Director determines 

that such advisory panels would be helpful in performing responsibilities of the Director under this section; and 

(iii) if, and to the extent that the Director determines that accurate estimates are reasonably feasible, 

include estimates of— 

(I) the future direct cost of the Federal mandate to the extent that such costs significantly differ from or extend beyond the 5-year period after 

the mandate is first effective; and 

(II) any disproportionate budgetary effects of 

Federal mandates upon particular industries or 

sectors of the economy, States, regions, and urban 

or rural or other types of communities, as appropriate. 

(C) In conducting a study on private sector mandates 

under subparagraph (A), the Director shall provide estimates, if and to the extent that the Director determines 

that such estimates are reasonably feasible, of— 

(i) future costs of Federal private sector mandates 

to the extent that such mandates differ significantly 

from or extend beyond the 5-year time period referred 

to in subparagraph (B)(iii)(I); 

(ii) any disproportionate financial effects of Federal private sector mandates and of any Federal financial assistance in the bill or joint resolution upon any 

particular industries or sectors of the economy, States, 

regions, and urban or rural or other types of communities; and 
Sec. 203 CONGRESSIONAL BUDGET ACT OF 1974 16 

(iii) the effect of Federal private sector mandates 

in the bill or joint resolution on the national economy, 

including the effect on productivity, economic growth, 

full employment, creation of productive jobs, and international competitiveness of United States goods and 

services. 

PUBLIC ACCESS TO BUDGET DATA

SEC. 203. ø2 U.S.C. 603¿ (a) RIGHT TO COPY.—Except as provided in subsections (c), (d), and (e), the Director shall make all information, data, estimates, and statistics obtained under sections 

201(d) and 201(e) available for public copying during normal business hours, subject to reasonable rules and regulations, and shall 

to the extent practicable, at the request of any person, furnish a 

copy of any such information, data, estimates, or statistics upon 

payment by such person of the cost of making and furnishing such 

copy. 

(b) INDEX.—The Director shall develop and maintain filing, 

coding, and indexing systems that identify the information, data, 

estimates, and statistics to which subsection (a) applies and shall 

make such systems available for public use during normal business 

hours. 

(c) EXCEPTIONS.—Subsection (a) shall not apply to information, 

data, estimates, and statistics— 

(1) which are specifically exempted from disclosure by law; 

or 

(2) which the Director determines will disclose— 

(A) matters necessary to be kept secret in the interests 

of national defense or the confidential conduct of the foreign relations of the United States; 

(B) information relating to trade secrets or financial or 

commercial information pertaining specifically to a given 

person if the information has been obtained by the Government on a confidential basis, other than through an application by such person for a specific financial or other benefit, and is required to be kept secret in order to prevent 

undue injury to the competitive position of such person; or 

(C) personnel or medical data or similar data the disclosure of which would constitute a clearly unwarranted 

invasion of personal privacy; 

unless the portions containing such matters, information, or 

data have been excised. 

(d) INFORMATION OBTAINED FOR COMMITTEES AND MEMBERS.— Subsection (a) shall apply to any information, data, estimates, and 

statistics obtained at the request of any committee, joint committee, or Member unless such committee, joint committee, or 

Member has instructed the Director not to make such information, 

data, estimates, or statistics available for public copying. 

(e) LEVEL OF CONFIDENTIALITY.—With respect to information, 

data, estimates, and statistics obtained under sections 201(d) and 

201(e), the Director shall maintain the same level of confidentiality 

as is required by law of the department, agency, establishment, or 

regulatory agency or commission from which it is obtained. Officers 

and employees of the Congressional Budget Office shall be subject 
17 Sec. 203 CONGRESSIONAL BUDGET ACT OF 1974 

to the same statutory penalties for unauthorized disclosure or use 

as officers or employees of the department, agency, establishment, 

or regulatory agency or commission from which it is obtained. 
Sec. 300 CONGRESSIONAL BUDGET ACT OF 1974 18 

Title III—Congressional Budget Process 

TIMETABLE

SEC. 300. ø2 U.S.C. 631¿ The timetable with respect to the 

congressional budget process for any fiscal year is as follows: 

On or before: Action to be completed: 

First Monday in February ................... President submits his budget. 

February 15 .......................................... Congressional Budget Office submits 

report to Budget Committees. 

Not later than 6 weeks after President submits budget ..........................Committees submit views and estimates to Budget Committees. 

April 1 ................................................... Senate Budget Committee reports concurrent resolution on the budget. 

April 15 ................................................. Congress completes action on concurrent resolution on the budget. 

May 15 ................................................... Annual appropriation bills may be considered in the House. 

June 10 .................................................. House Appropriations Committee reports last annual appropriation bill. 

June 15 .................................................. Congress completes action on reconciliation legislation. 

June 30 .................................................. House completes action on annual appropriation bills. 

October 1 ............................................... Fiscal year begins. 

ANNUAL ADOPTION OF CONCURRENT RESOLUTION ON THE BUDGET

SEC. 301. ø2 U.S.C. 632¿ (a) CONTENT OF CONCURRENT RESO- LUTION ON THE BUDGET.—On or before April 15 of each year, the 

Congress shall complete action on a concurrent resolution on the 

budget for the fiscal year beginning on October 1 of such year. The 

concurrent resolution shall set forth appropriate levels for the fiscal 

year beginning on October 1 of such year and for at least each of 

the 4 ensuing fiscal years for the following— 

(1) totals of new budget authority and outlays; 

(2) total Federal revenues and the amount, if any, by 

which the aggregate level of Federal revenues should be increased or decreased by bills and resolutions to be reported by 

the appropriate committees; 

(3) the surplus or deficit in the budget; 

(4) new budget authority and outlays for each major functional category, based on allocations of the total levels set forth 

pursuant to paragraph (1); 

(5) the public debt; 

(6) For purposes of Senate enforcement under this title, 

outlays of the old-age, survivors, and disability insurance program established under title II of the Social Security Act for 

the fiscal year of the resolution and for each of the 4 succeeding fiscal years; and 

(7) For purposes of Senate enforcement under this title, 

revenues of the old-age, survivors, and disability insurance program established under title II of the Social Security Act (and 

the related provisions of the Internal Revenue Code of 1986) 

for the fiscal year of the resolution and for each of the 4 succeeding fiscal years. 

The concurrent resolution shall not include the outlays and revenue totals of the old age, rvivors, and disability insurance program 
19 Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 

established under title II of the Social Security Act or the related 

provisions of the Internal Revenue Code of 1986 in the surplus or 

deficit totals required by this subsection or in any other surplus or 

deficit totals required by this title. 

(b) ADDITIONAL MATTERS IN CONCURRENT RESOLUTION.—The 

concurrent resolution on the budget may— 

(1) set forth, if required by subsection (f), the calendar year 

in which, in the opinion of the Congress, the goals for reducing 

unemployment set forth in section 4(b) of the Employment Act 

of 1946 should be achieved; 

(2) include reconciliation directives described in section 

310; 

(3) require a procedure under which all or certain bills or 

resolutions providing new budget authority or new entitlement 

authority for such fiscal year shall not be enrolled until the 

Congress has completed action on any reconciliation bill or reconciliation resolution or both required by such concurrent resolution to be reported in accordance with section 310(b); 

(4) set forth such other matters, and require such other 

procedures, relating to the budget, as may be appropriate to 

carry out the purposes of this Act; 

(5) include a heading entitled ‘‘Debt Increase as Measure 

of Deficit’’ in which the concurrent resolution shall set forth 

the amounts by which the debt subject to limit (in section 3101 

of title 31 of the United States Code) has increased or would 

increase in each of the relevant fiscal years; 

(6) include a heading entitled ‘‘Display of Federal Retirement Trust Fund Balances’’ in which the concurrent resolution 

shall set forth the balances of the Federal retirement trust 

funds; 

(7) set forth procedures in the Senate whereby committee 

allocations, aggregates, and other levels can be revised for legislation if that legislation would not increase the deficit, or 

would not increase the deficit when taken with other legislation enacted after the adoption of the resolution, for the first 

fiscal year or the total period of fiscal years covered by the resolution; 

(8) set forth procedures to effectuate pay-as-you-go in the 

House of Representatives; and 

(9) set forth direct loan obligation and primary loan guarantee commitment levels. 

(c) CONSIDERATION OF PROCEDURES OR MATTERS WHICH HAVE

THE EFFECT OF CHANGING ANY RULE OF THE HOUSE OF REPRESENTATIVES.—If the Committee on the Budget of the House of Representatives reports any concurrent resolution on the budget which 

includes any procedure or matter which has the effect of changing 

any rule of the House of Representatives, such concurrent resolution shall then be referred to the Committee on Rules with instructions to report it within five calendar days (not counting any day 

on which the House is not in session). The Committee on Rules 

shall have jurisdiction to report any concurrent resolution referred 

to it under this paragraph with an amendment or amendments 

changing or striking out any such procedure or matter. 
Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 20 

(d) VIEWS AND ESTIMATES OF OTHER COMMITTEES.—Within 6 

weeks after the President submits a budget under section 1105(a) 

of title 31, United States Code, or at such time as may be requested by the Committee on the Budget, each committee of the 

House of Representatives having legislative jurisdiction shall submit to the Committee on the Budget of the House and each committee of the Senate having legislative jurisdiction shall submit to 

the Committee on the Budget of the Senate its views and estimates 

(as determined by the committee making such submission) with respect to all matters set forth in subsections (a) and (b) which relate 

to matters within the jurisdiction or functions of such committee. 

The Joint Economic Committee shall submit to the Committees on 

the Budget of both Houses its recommendations as to the fiscal policy appropriate to the goals of the Employment Act of 1946. Any 

other committee of the House of Representatives or the Senate may 

submit to the Committee on the Budget of its House, and any joint 

committee of the Congress may submit to the Committees on the 

Budget of both Houses, its views and estimates with respect to all 

matters set forth in subsections (a) and (b) which relate to matters 

within its jurisdiction or functions. Any Committee of the House of 

Representatives or the Senate that anticipates that the committee 

will consider any proposed legislation establishing, amending, or 

reauthorizing any Federal program likely to have a significant 

budgetary impact on any State, local, or tribal government, or likely to have a significant financial impact on the private sector, including any legislative proposal submitted by the executive branch 

likely to have such a budgetary or financial impact, shall include 

its views and estimates on that proposal to the Committee on the 

Budget of the applicable House. 

(e) HEARINGS AND REPORT.— 

(1) IN GENERAL.—In developing the concurrent resolution 

on the budget referred to in subsection (a) for each fiscal year, 

the Committee on the Budget of each House shall hold hearings and shall receive testimony from Members of Congress 

and such appropriate representatives of Federal departments 

and agencies, the general public, and national organizations as 

the committee deems desirable. Each of the recommendations 

as to short-term and medium-term goal set forth in the report 

submitted by the members of the Joint Economic Committee 

under subsection (d) may be considered by the Committee on 

the Budget of each House as part of its consideration of such 

concurrent resolution, and its report may reflect its views 

thereon, including its views on how the estimates of revenues 

and levels of budget authority and outlays set forth in such 

concurrent resolution are designed to achieve any goals it is 

recommending. 

(2) REQUIRED CONTENTS OF REPORT.—The report accompanying the resolution shall include— 

(A) a comparison of the levels of total new budget authority, total outlays, total revenues, and the surplus or 

deficit for each fiscal year set forth in the resolution with 

those requested in the budget submitted by the President; 

(B) with respect to each major functional category, an 

estimate of total new budget authority and total outlays, 
21 Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 

with the estimates divided between discretionary and 

mandatory amounts; 

(C) the economic assumptions that underlie each of 

the matters set forth in the resolution and any alternative 

economic assumptions and objectives the committee considered; 

(D) information, data, and comparisons indicating the 

manner in which, and the basis on which, the committee 

determined each of the matters set forth in the resolution; 

(E) the estimated levels of tax expenditures (the tax 

expenditures budget) by major items and functional categories for the President’s budget and in the resolution; 

and 

(F) allocations described in section 302(a). 

(3) ADDITIONAL CONTENTS OF REPORT.—The report accompanying the resolution may include— 

(A) a statement of any significant changes in the proposed levels of Federal assistance to State and local governments; 

(B) an allocation of the level of Federal revenues recommended in the resolution among the major sources of 

such revenues; 

(C) information, data, and comparisons on the share of 

total Federal budget outlays and of gross domestic product 

devoted to investment in the budget submitted by the 

President and in the resolution; 

(D) the assumed levels of budget authority and outlays 

for public buildings, with a division between amounts for 

construction and repair and for rental payments; and 

(E) other matters, relating to the budget and to fiscal 

policy, that the committee deems appropriate. 

(f) ACHIEVEMENT OF GOALS FOR REDUCING UNEMPLOYMENT.— 

(1) If, pursuant to section 4(c) of the Employment Act of 

1946, the President recommends in the Economic Report that 

the goals for reducing unemployment set forth in section 4(b) 

of such Act be achieved in a year after the close of the fiveyear period prescribed by such subsection, the concurrent resolution on the budget for the fiscal year beginning after the date 

on which such Economic Report is received by the Congress 

may set forth the year in which, in the opinion of the Congress, 

such goals can be achieved. 

(2) After the Congress has expressed its opinion pursuant 

to paragraph (1) as to the year in which the goals for reducing 

unemployment set forth in section 4(b) of the Employment Act 

of 1946 can be achieved, if, pursuant to section 4(e) of such 

Act, the President recommends in the Economic Report that 

such goals be achieved in a year which is different from the 

year in which the Congress has expressed its opinion that such 

goals should be achieved, either in its action pursuant to paragraph (1) or in its most recent action pursuant to this paragraph, the concurrent resolution on the budget for the fiscal 

year beginning after the date on which such Economic Report 

is received by the Congress may set forth the year in which, 

in the opinion of the Congress, such goals can be achieved. 
Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974 22 

(3) It shall be in order to amend the provision of such resolution setting forth such year only if the amendment thereto 

also proposes to alter the estimates, amounts, and levels (as 

described in subsection (a)) set forth in such resolution in germane fashion in order to be consistent with the economic goals 

(as described in sections 3(a)(2) and (4)(b) of the Employment 

Act of 1946) which such amendment proposes can be achieved 

by the year specified in such amendment. 

(g) ECONOMIC ASSUMPTIONS.— (1) It shall not be in order in the Senate to consider any 

concurrent resolution on the budget for a fiscal year, or any 

amendment thereto, or any conference report thereon, that sets 

forth amounts and levels that are determined on the basis of 

more than one set of economic and technical assumptions. 

(2) The joint explanatory statement accompanying a conference report on a concurrent resolution on the budget shall 

set forth the common economic assumptions upon which such 

joint statement and conference report are based, or upon which 

any amendment contained in the joint explanatory statement 

to be proposed by the conferees in the case of technical disagreement, is based. 

(3) Subject to periodic reestimation based on changed economic conditions or technical estimates, determinations under 

titles III and IV of the Congressional Budget Act of 1974 shall 

be based upon such common economic and technical assumptions. 

(h) BUDGET COMMITTEES CONSULTATION WITH COMMITTEES.— The Committee on the Budget of the House of Representatives 

shall consult with the committees of its House having legislative 

jurisdiction during the preparation, consideration, and enforcement 

of the concurrent resolution on the budget with respect to all matters which relate to the jurisdiction or functions of such committees. 

(i) SOCIAL SECURITY POINT OF ORDER.—It shall not be in order 

in the Senate to consider any concurrent resolution on the budget 

(or amendment, motion, or conference report on the resolution) that 

would decrease the excess of social security revenues over social security outlays in any of the fiscal years covered by the concurrent 

resolution. No change in chapter 1 of the Internal Revenue Code 

of 1986 shall be treated as affecting the amount of social security 

revenues unless such provision changes the income tax treatment 

of social security benefits. 

COMMITTEE ALLOCATIONS

SEC. 302. ø2 U.S.C. 633¿ (a) COMMITTEE SPENDING ALLOCATIONS.— 

(1) ALLOCATION AMONG COMMITTEES.—The joint explanatory statement accompanying a conference report on a concurrent resolution on the budget shall include an allocation, consistent with the resolution recommended in the conference report, of the levels for the first fiscal year of the resolution, for 

at least each of the ensuing 4 fiscal years, and a total for that 

period of fiscal years (except in the case of the Committee on 

Appropriations only for the fiscal year of that resolution) of— 
23 Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974 

(A) total new budget authority; and 

(B) total outlays; 

among each committee of the House of Representatives or the 

Senate that has jurisdiction over legislation providing or creating such amounts. 

(2) NO DOUBLE COUNTING.—In the House of Representatives, any item allocated to one committee may not be allocated 

to another committee. 

(3) FURTHER DIVISION OF AMOUNTS.— (A) IN THE SENATE.—In the Senate, the amount allocated to the Committee on Appropriations shall be further 

divided among the categories specified in section 250(c)(4) 

of the Balanced Budget and Emergency Deficit Control Act 

of 1985 and shall not exceed the limits for each category 

set forth in section 251(c) of that Act. 

(B) IN THE HOUSE.—In the House of Representatives, 

the amounts allocated to each committee for each fiscal 

year, other than the Committee on Appropriations, shall 

be further divided between amounts provided or required 

by law on the date of filing of that conference report and 

amounts not so provided or required. The amounts allocated to the Committee on Appropriations shall be further 

divided— 

(i) between discretionary and mandatory amounts 

or programs, as appropriate; and 

(ii) consistent with the categories specified in section 250(c)(4) of the Balanced Budget and Emergency 

Deficit Control Act of 1985. 

(4) AMOUNTS NOT ALLOCATED.—In the House of Representatives or the Senate, if a committee receives no allocation of 

new budget authority or outlays, that committee shall be 

deemed to have received an allocation equal to zero for new 

budget authority or outlays. 

(5) ADJUSTING ALLOCATION OF DISCRETIONARY SPENDING IN

THE HOUSE OF REPRESENTATIVES.—(A) If a concurrent resolution on the budget is not adopted by April 15, the chairman of 

the Committee on the Budget of the House of Representatives 

shall submit to the House, as soon as practicable, an allocation 

under paragraph (1) to the Committee on Appropriations consistent with the discretionary spending levels in the most recently agreed to concurrent resolution on the budget for the appropriate fiscal year covered by that resolution. 

(B) As soon as practicable after an allocation under paragraph (1) is submitted under this section, the Committee on 

Appropriations shall make suballocations and report those suballocations to the House of Representatives. 

(b) SUBALLOCATIONS BY APPROPRIATIONS COMMITTEES.—As 

soon as practicable after a concurrent resolution on the budget is 

agreed to, the Committee on Appropriations of each House (after 

consulting with the Committee on Appropriations of the other 

House) shall suballocate each amount allocated to it for the budget 

year under subsection (a) among its subcommittees. Each Committee on Appropriations shall promptly report to its House suballocations made or revised under this subsection. The Committee 
Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974 24 

on Appropriations of the House of Representatives shall further divide among its subcommittees the divisions made under subsection 

(a)(3)(B) and promptly report those divisions to the House. 

(c) POINT OF ORDER.—After the Committee on Appropriations 

has received an allocation pursuant to subsection (a) for a fiscal 

year, it shall not be in order in the House of Representatives or the 

Senate to consider any bill, joint resolution, amendment, motion, or 

conference report within the jurisdiction of that committee providing new budget authority for that fiscal year, until that committee makes the suballocations required by subsection (b). 

(d) SUBSEQUENT CONCURRENT RESOLUTIONS.—In the case of a 

concurrent resolution on the budget referred to in section 304, the 

allocations under subsection (a) and the subdivisions under subsection (b) shall be required only to the extent necessary to take 

into account revisions made in the most recently agreed to concurrent resolution on the budget. 

(e) ALTERATION OF ALLOCATIONS.—At any time after a committee reports the allocations required to be made under subsection 

(b), such committee may report to its House an alteration of such 

allocations. Any alteration of such allocations must be consistent 

with any actions already taken by its House on legislation within 

the committee’s jurisdiction. 

(f) LEGISLATION SUBJECT TO POINT OF ORDER.— 

(1) IN THE HOUSE OF REPRESENTATIVES.—After the Congress has completed action on a concurrent resolution on the 

budget for a fiscal year, it shall not be in order in the House 

of Representatives to consider any bill, joint resolution, or 

amendment providing new budget authority for any fiscal year, 

or any conference report on any such bill or joint resolution, 

if— 

(A) the enactment of such bill or resolution as reported; 

(B) the adoption and enactment of such amendment; 

or 

(C) the enactment of such bill or resolution in the form 

recommended in such conference report, 

would cause the applicable allocation of new budget authority 

made under subsection (a) or (b) for the first fiscal year or the 

total of fiscal years to be exceeded. 

(2) IN THE SENATE.—After a concurrent resolution on the 

budget is agreed to, it shall not be in order in the Senate to 

consider any bill, joint resolution, amendment, motion, or conference report that would cause— 

(A) in the case of any committee except the Committee 

on Appropriations, the applicable allocation of new budget 

authority or outlays under subsection (a) for the first fiscal 

year or the total of fiscal years to be exceeded; or 

(B) in the case of the Committee on Appropriations, 

the applicable suballocation of new budget authority or 

outlays under subsection (b) to be exceeded. 

(g) PAY-AS-YOU-GO EXCEPTION IN THE HOUSE.— 

(1) IN GENERAL.—(A) Subsection (f)(1) and, after April 15, 

section 303(a) shall not apply to any bill or joint resolution, as 

reported, amendment thereto, or conference report thereon if, 
25 Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974 

for each fiscal year covered by the most recently agreed to concurrent resolution on the budget— 

(i) the enactment of that bill or resolution as reported; 

(ii) the adoption and enactment of that amendment; or 

(iii) the enactment of that bill or resolution in the form 

recommended in that conference report, 

would not increase the deficit, and, if the sum of any revenue 

increases provided in legislation already enacted during the 

current session (when added to revenue increases, if any, in excess of any outlay increase provided by the legislation proposed 

for consideration) is at least as great as the sum of the 

amount, if any, by which the aggregate level of Federal revenues should be increased as set forth in that concurrent resolution and the amount, if any, by which revenues are to be increased pursuant to pay-as-you-go procedures under section 

301(b)(8), if included in that concurrent resolution. 

(B) Section 311(a), as that section applies to revenues, 

shall not apply to any bill, joint resolution, amendment thereto, or conference report thereon if, for each fiscal year covered 

by the most recently agreed to concurrent resolution on the 

budget— 

(i) the enactment of that bill or resolution as reported; 

(ii) the adoption and enactment of that amendment; or 

(iii) the enactment of that bill or resolution in the form 

recommended in that conference report, 

would not increase the deficit, and, if the sum of any outlay reductions provided in legislation already enacted during the current session (when added to outlay reductions, if any, in excess 

of any revenue reduction provided by the legislation proposed 

for consideration) is at least as great as the sum of the 

amount, if any, by which the aggregate level of Federal outlays 

should be reduced as required by that concurrent resolution 

and the amount, if any, by which outlays are to be reduced 

pursuant to pay-as-you-go procedures under section 301(b)(8), 

if included in that concurrent resolution. 

(2) REVISED ALLOCATIONS.—(A) As soon as practicable after 

Congress agrees to a bill or joint resolution that would have 

been subject to a point of order under subsection (f)(1) but for 

the exception provided in paragraph (1)(A) or would have been 

subject to a point of order under section 311(a) but for the exception provided in paragraph (1)(B), the chairman of the committee on the Budget of the House of Representatives shall file 

with the House appropriately revised allocations under section 

302(a) and revised functional levels and budget aggregates to 

reflect that bill. 

(B) Such revised allocations, functional levels, and budget 

aggregates shall be considered for the purposes of this Act as 

allocations, functional levels, and budget aggregates contained 

in the most recently agreed to concurrent resolution on the 

budget. 
Sec. 303 CONGRESSIONAL BUDGET ACT OF 1974 26 

13 In the House, the application of section 303 was modified for the 106th Congress by section 

2(a)(3) of H. Res. 5 (106th Congress) on January 6, 1999, to clarify that, in the case of a reported 

bill or joint resolution considered pursuant to a special order, determinations under section 303 

are for the text made in order as an original bill or joint resolution for the purpose of amendment or to the text on which the previous question is ordered directly to passage. This provision 

has been extended through House Resolutions through the 112th Congress. 

CONCURRENT RESOLUTION ON THE BUDGET MUST BE ADOPTED

BEFORE BUDGET-RELATED LEGISLATION IS CONSIDERED

SEC. 303. 13 ø2 U.S.C. 634¿ (a) IN GENERAL.—Until the concurrent resolution on the budget for a fiscal year has been agreed to, 

it shall not be in order in the House of Representatives, with respect to the first fiscal year covered by that resolution, or the Senate, with respect to any fiscal year covered by that resolution, to 

consider any bill or joint resolution, amendment or motion thereto, 

or conference report thereon that— 

(1) first provides new budget authority for that fiscal year; 

(2) first provides an increase or decrease in revenues during that fiscal year; 

(3) provides an increase or decrease in the public debt 

limit to become effective during that fiscal year; 

(4) in the Senate only, first provides new entitlement authority for that fiscal year; or 

(5) in the Senate only, first provides for an increase or decrease in outlays for that fiscal year. 

(b) EXCEPTIONS IN THE HOUSE.— In the House of Representatives, subsection (a) does not apply— 

(1)(A) to any bill or joint resolution, as reported, providing 

advance discretionary new budget authority that first becomes 

available for the first or second fiscal year after the budget 

year; or 

(B) to any bill or joint resolution, as reported, first increasing or decreasing revenues in a fiscal year following the fiscal 

year to which the concurrent resolution applies; 

(2) after May 15, to any general appropriation bill or 

amendment thereto; or 

(3) to any bill or joint resolution unless it is reported by 

a committee. 

(c) APPLICATION TO APPROPRIATION MEASURES IN THE SENATE.— 

(1) IN GENERAL.—Until the concurrent resolution on the 

budget for a fiscal year has been agreed to and an allocation 

has been made to the Committee on Appropriations of the Senate under section 302(a) for that year, it shall not be in order 

in the Senate to consider any appropriation bill or joint resolution, amendment or motion thereto, or conference report thereon for that year or any subsequent year. 

(2) EXCEPTION.—Paragraph (1) does not apply to appropriations legislation making advance appropriations for the 

first or second fiscal year after the year the allocation referred 

to in that paragraph is made. 
27 Sec. 305 CONGRESSIONAL BUDGET ACT OF 1974 

14See clause 10(a) of Rule XVIII of the Rules of the House of Representatives. See page 269. 15 Recodified at the beginning of the 106th Congress as clause 4 of Rule XIII. 

PERMISSIBLE REVISIONS OF CONCURRENT RESOLUTIONS ON THE

BUDGET

SEC. 304. ø2 U.S.C. 635¿ At any time after the concurrent resolution on the budget for a fiscal year has been agreed to pursuant 

to section 301, and before the end of such fiscal year, the two 

Houses may adopt a concurrent resolution on the budget which revises or reaffirms the concurrent resolution on the budget for such 

fiscal year most recently agreed to. 

PROVISIONS RELATING TO THE CONSIDERATION OF CONCURRENT

RESOLUTIONS ON THE BUDGET

SEC. 305. ø2 U.S.C. 636¿ (a) 14 PROCEDURE IN HOUSE OF REPRESENTATIVES AFTER REPORT OF COMMITTEE; DEBATE.— 

(1) When a concurrent resolution on the budget has been 

reported by the Committee on the Budget of the House of Representatives and has been referred to the appropriate calendar 

of the House, it shall be in order on any day thereafter, subject 

to clause 2(l)(6) of rule XI 15 of the Rules of the House of Representatives, to move to proceed to the consideration of the 

concurrent resolution. The motion is highly privileged and is 

not debatable. An amendment to the motion is not in order and 

it is not in order to move to reconsider the vote by which the 

motion is agreed to or disagreed to. 

(2) General debate on any concurrent resolution on the 

budget in the House of Representatives shall be limited to not 

more than 10 hours, which shall be divided equally between 

the majority and minority parties, plus such additional hours 

of debate as are consumed pursuant to paragraph (3). A motion 

further to limit debate is not debatable. A motion to recommit 

the concurrent resolution is not in order, and it is not in order 

to move to reconsider the vote by which the concurrent resolution is agreed to or disagreed to. 

(3) Following the presentation of opening statements on 

the concurrent resolution on the budget for a fiscal year by the 

chairman and ranking minority member of the Committee on 

the Budget of the House, there shall be a period of up to four 

hours for debate on economic goals and policies. 

(4) Only if a concurrent resolution on the budget reported 

by the Committee on the Budget of the House sets forth the 

economic goals (as described in sections 3(a)(2) and (4)(b) of the 

Full Employment Act of 1946) which the estimates, amounts, 

and levels (as described in section 301(a)) set forth in such resolution are designed to achieve, shall it be in order to offer to 

such resolution an amendment relating to such goals, and such 

amendment shall be in order only if it also proposes to alter 

such estimates, amounts, and levels in germane fashion in 

order to be consistent with the goals proposed in such amendment. 
Sec. 305 CONGRESSIONAL BUDGET ACT OF 1974 28 

16See clause 10(c) of Rule XVIII of the Rules of the House of Representatives on page 269. 17 Recodified at the beginning of the 106th Congress as Rule XVIII. 

(5) 16 Consideration of any concurrent resolution on the 

budget by the House of Representatives shall be in the Committee of the Whole, and the resolution shall be considered for 

amendment under the five-minute rule in accordance with the 

applicable provisions of rule XXIII 17 of the Rules of the House 

of Representatives. After the Committee rises and reports the 

resolution back to the House, the previous question shall be 

considered as ordered on the resolution and any amendments 

thereto to final passage without intervening motion; except 

that it shall be in order at any time prior to final passage (notwithstanding any other rule or provision of law) to adopt an 

amendment (or a series of amendments) changing any figure or 

figures in the resolution as so reported to the extent necessary 

to achieve mathematical consistency. 

(6) Debate in the House of Representatives on the conference report on any concurrent resolution on the budget shall 

be limited to not more than 5 hours, which shall be divided 

equally between the majority and minority parties. A motion 

further to limit debate is not debatable. A motion to recommit 

the conference report is not in order, and it is not in order to 

move to reconsider the vote by which the conference report is 

agreed to or disagreed to. 

(7) Appeals from decisions of the Chair relating to the application of the Rules of the House of Representatives to the 

procedure relating to any concurrent resolution on the budget 

shall be decided without debate. 

(b) PROCEDURE IN SENATE AFTER REPORT OF COMMITTEE; DEBATE; AMENDMENTS.— 

(1) Debate in the Senate on any concurrent resolution on 

the budget, and all amendments thereto and debatable motions 

and appeals in connection therewith, shall be limited to not 

more than 50 hours, except that with respect to any concurrent 

resolution referred to in section 304(a) all such debate shall be 

limited to not more than 15 hours. The time shall be equally 

divided between, and controlled by, the majority leader and the 

minority leader or their designees. 

(2) Debate in the Senate on any amendment to a concurrent resolution on the budget shall be limited to 2 hours, to be 

equally divided between, and controlled by, the mover and the 

manager of the concurrent resolution, and debate on any 

amendment to an amendment, debatable motion, or appeal 

shall be limited to 1 hour, to be equally divided between, and 

controlled by, the mover and the manager of the concurrent 

resolution, except that in the event the manager of the concurrent resolution is in favor of any such amendment, motion, or 

appeal, the time in opposition thereto shall be controlled by the 

minority leader or his designee. No amendment that is not germane to the provisions of such concurrent resolution shall be 

received. Such leaders, or either of them, may, from the time 

under their control on the passage of the concurrent resolution, 
29 Sec. 305 CONGRESSIONAL BUDGET ACT OF 1974 

allot additional time to any Senator during the consideration 

of any amendment, debatable motion, or appeal. 

(3) Following the presentation of opening statements on 

the concurrent resolution on the budget for a fiscal year by the 

chairman and ranking minority member of the Committee on 

the Budget of the Senate, there shall be a period of up to four 

hours for debate on economic goals and policies. 

(4) Subject to the other limitations of this Act, only if a 

concurrent resolution on the budget reported by the Committee 

on the Budget of the Senate sets forth the economic goals (as 

described in sections 3(a)(2) and 4(b) of the Employment Act of 

1946) which the estimates, amounts, and levels (as described 

in section 301(a)) set forth in such resolution are designed to 

achieve, shall it be in order to offer to such resolution an 

amendment relating to such goals, and such amendment shall 

be in order only if it also proposes to alter such estimates, 

amounts, and levels in germane fashion in order to be consistent with the goals proposed in such amendment. 

(5) A motion to further limit debate is not debatable. A motion to recommit (except a motion to recommit with instructions to report back within a specified number of days, not to 

exceed 3, not counting any day on which the Senate is not in 

session) is not in order. Debate on any such motion to recommit shall be limited to 1 hour, to be equally divided between, 

and controlled by, the mover and the manager of the concurrent resolution. 

(6) Notwithstanding any other rule, an amendment or series of amendments to a concurrent resolution on the budget 

proposed in the Senate shall always be in order if such amendment or series of amendments proposes to change any figure 

or figures then contained in such concurrent resolution so as 

to make such concurrent resolution mathematically consistent 

or so as to maintain such consistency. 

(c) ACTION ON CONFERENCE REPORTS IN THE SENATE.— (1) A motion to proceed to the consideration of the conference report on any concurrent resolution on the budget (or 

a reconciliation bill or resolution) may be made even though a 

previous motion to the same effect has been disagreed to. 

(2) During the consideration in the Senate of the conference report (or a message between Houses) on any concurrent resolution on the budget, and all amendments in disagreement, and all amendments thereto, and debatable motions and 

appeals in connection therewith, debate shall be limited to 10 

hours, to be equally divided between, and controlled by, the 

majority leader and minority leader or their designees. Debate 

on any debatable motion or appeal related to the conference report (or a message between Houses) shall be limited to 1 hour, 

to be equally divided between, and controlled by, the mover 

and the manager of the conference report (or a message between Houses). 

(3) Should the conference report be defeated, debate on 

any request for a new conference and the appointment of 

conferrees shall be limited to 1 hour, to be equally divided between, and controlled by, the manager of the conference report 
Sec. 306 CONGRESSIONAL BUDGET ACT OF 1974 30 

and the minority leader or his designee, and should any motion 

be made to instruct the conferees before the conferees are 

named, debate on such motion shall be limited to one-half 

hour, to be equally divided between, and controlled by, the 

mover and the manager of the conference report. Debate on 

any amendment to any such instructions shall be limited to 20 

minutes, to be equally divided between and controlled by the 

mover and the manager of the conference report. In all cases 

when the manager of the conference report is in favor of any 

motion, appeal, or amendment, the time in opposition shall be 

under the control of the minority leader or his designee. 

(4) In any case in which there are amendments in disagreement, time on each amendment shall be limited to 30 

minutes, to be equally divided between, and controlled by, the 

manager of the conference report and the minority leader or 

his designee. No amendment that is not germane to the provisions of such amendments shall be received. 

(d) CONCURRENT RESOLUTION MUST BE CONSISTENT IN THE

SENATE.—It shall not be in order in the Senate to vote on the question of agreeing to— 

(1) a concurrent resolution on the budget unless the figures then contained in such resolution are mathematically consistent; or 

(2) a conference report on a concurrent resolution on the 

budget unless the figures contained in such resolution, as recommended in such conference report, are mathematically consistent. 

LEGISLATION DEALING WITH CONGRESSIONAL BUDGET MUST BE

HANDLED BY BUDGET COMMITTEES

SEC. 306. ø2 U.S.C. 637¿ No bill, resolution, amendment, motion, or conference report, dealing with any matter which is within 

the jurisdiction of the Committee on the Budget of either House 

shall be considered in that House unless it is a bill or resolution 

which has been reported by the Committee on the Budget of that 

House (or from the consideration of which such committee has been 

discharged) or unless it is an amendment to such a bill or resolution. 

HOUSE COMMITTEE ACTION ON ALL APPROPRIATION BILLS TO BE

COMPLETED BY JUNE 10

SEC. 307. ø2 U.S.C. 638¿ On or before June 10 of each year, 

the Committee on Appropriations of the House of Representatives 

shall report annual appropriation bills providing new budget authority under the jurisdiction of all of its subcommittees for the fiscal year which begins on October 1 of that year. 

REPORTS, SUMMARIES, AND PROJECTIONS OF CONGRESSIONAL BUDGET

ACTIONS

SEC. 308. ø2 U.S.C. 639¿ (a) REPORTS ON LEGISLATION PROVIDING NEW BUDGET AUTHORITY OR PROVIDING AN INCREASE OR

DECREASE IN REVENUES OR TAX EXPENDITURES.— 
31 Sec. 308 CONGRESSIONAL BUDGET ACT OF 1974 

(1) Whenever a committee of either House reports to its 

House a bill or joint resolution, or committee amendment 

thereto, providing new budget authority (other than continuing 

appropriations) or providing an increase or decrease in revenues or tax expenditures for a fiscal year (or fiscal years), the 

report accompanying that bill or joint resolution shall contain 

a statement, or the committee shall make available such a 

statement in the case of an approved committee amendment 

which is not reported to its House, prepared after consultation 

with the Director of the Congressional Budget Office— 

(A) comparing the levels in such measure to the appropriate allocations in the reports submitted under section 

302(b) for the most recently agreed to concurrent resolution on the budget for such fiscal year (or fiscal years); 

(B) containing a projection by the Congressional Budget Office of how such measure will affect the levels of such 

budget authority, budget outlays, revenues, or tax expenditures under existing law for such fiscal year (or fiscal 

years) and each of the four ensuing fiscal years, if timely 

submitted before such report is filed; and 

(C) containing an estimate by the Congressional Budget Office of the level of new budget authority for assistance 

to State and local governments provided by such measure, 

if timely submitted before such report is filed. 

(2) Whenever a conference report is filed in either House 

and such conference report or any amendment reported in disagreement or any amendment contained in the joint statement 

of managers to be proposed by the conferees in the case of 

technical disagreement on such bill or joint resolution provides 

new budget authority (other than continuing appropriations) or 

provides an increase or decrease in revenues for a fiscal year 

(or fiscal years), the statement of managers accompanying such 

conference report shall contain the information described in 

paragraph (1), if available on a timely basis. If such information is not available when the conference report is filed, the 

committee shall make such information available to Members 

as soon as practicable prior to the consideration of such conference report. 

(3) CBO PAYGO ESTIMATES.— 

(A) The Chairs of the Committees on the Budget of the 

House and Senate, as applicable, shall request from the 

Director of the Congressional Budget Office an estimate of 

the budgetary effects of PAYGO legislation. 

(B) Estimates shall be prepared using baseline estimates supplied by the Congressional Budget Office, consistent with section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985. 

(C) The Director shall not count timing shifts, as that 

term is defined at section 3(8) of the Statutory Pay-AsYou-Go Act of 2010, in estimates of the budgetary effects 

of PAYGO Legislation. 

(b) UP-TO-DATE TABULATIONS OF CONGRESSIONAL BUDGET ACTION.— 
Sec. 309 CONGRESSIONAL BUDGET ACT OF 1974 32 

(1) The Director of the Congressional Budget Office shall 

issue to the committees of the House of Representatives and 

the Senate reports on at least a monthly basis detailing and 

tabulating the progress of congressional action on bills and 

joint resolutions providing new budget authority or providing 

an increase or decrease in revenues or tax expenditures for 

each fiscal year covered by a concurrent resolution on the 

budget. Such reports shall include but are not limited to an upto-date tabulation comparing the appropriate aggregate and 

functional levels (including outlays) included in the most recently adopted concurrent resolution on the budget with the 

levels provided in bills and joint resolutions reported by committees or adopted by either House or by the Congress, and 

with the levels provided by law for the fiscal year preceding 

the first fiscal year covered by the appropriate concurrent resolution. 

(2) The Committee on the Budget of each House shall 

make available to Members of its House summary budget 

scorekeeping reports. Such reports— 

(A) shall be made available on at least a monthly 

basis, but in any case frequently enough to provide Members of each House an accurate representation of the current status of congressional consideration of the budget; 

(B) shall include, but are not limited to summaries of 

tabulations provided under subsection (b)(1); and 

(C) shall be based on information provided under subsection (b)(1) without substantive revision. 

The chairman of the Committee on the Budget of the House of Representatives shall submit such reports to the Speaker. 

(c) FIVE-YEAR PROJECTION OF CONGRESSIONAL BUDGET ACT.— As soon as practicable after the beginning of each fiscal year, the 

Director of the Congressional Budget Office shall issue a report 

projecting for the period of 5 fiscal years beginning with such fiscal 

year— 

(1) total new budget authority and total budget outlays for 

each fiscal year in such period; 

(2) revenues to be received and the major sources thereof, 

and the surplus or deficit, if any, for each fiscal year in such 

period; 

(3) tax expenditures for each fiscal year in such period; 

and 

(4) entitlement authority for each fiscal year in such period. 

(d) Scorekeeping Guidelines.—Estimates under this section 

shall be provided in accordance with the scorekeeping guidelines 

determined under section 252(d)(5) of the Balanced Budget and 

Emergency Deficit Control Act of 1985. 

HOUSE APPROVAL OF REGULAR APPROPRIATION BILLS

SEC. 309. ø2 U.S.C. 640¿ It shall not be in order in the House 

of Representatives to consider any resolution providing for an adjournment period of more than three calendar days during the 

month of July until the House of Representatives has approved annual appropriation bills providing new budget authority under the 
33 Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974 

18 A point of order now lays against a reconciliation bill that has the net effect of increasing 

direct spending. Clause 7 of rule XXI of the Rules of the House of Representatives for the 112th 

Congress provides as follows: 

‘‘7. It shall not be in order to consider a concurrent resolution on the budget, or an amendment thereto, or a conference report thereon that contains reconciliation directives under section 

310 of the Congressional Budget Act of 1974 that specify changes in law such that the reconciliation legislation reported pursuant to such directives would cause an increase in net direct 

spending (as such term is defined in clause 10) for the period covered by such concurrent resolution.’’ 

jurisdiction of all the subcommittees of the Committee on Appropriations for the fiscal year beginning on October 1 of such year. 

For purposes of this section, the chairman of the Committee on Appropriations of the House of Representatives shall periodically advise the Speaker as to changes in jurisdiction among its various 

subcommittees. 

RECONCILIATION 18

SEC. 310. ø2 U.S.C. 641¿ (a) INCLUSION OF RECONCILIATION DI- RECTIVES IN CONCURRENT RESOLUTIONS ON THE BUDGET.—A concurrent resolution on the budget for any fiscal year, to the extent 

necessary to effectuate the provisions and requirements of such 

resolution, shall— 

(1) specify the total amount by which— 

(A) new budget authority for such fiscal year; 

(B) budget authority initially provided for prior fiscal 

years; 

(C) new entitlement authority which is to become effective during such fiscal year; and 

(D) credit authority for such fiscal year, 

contained in laws, bills, and resolutions within the jurisdiction 

of a committee is to be changed and direct that committee to 

determine and recommend changes to accomplish a change of 

such total amount; 

(2) specify the total amount by which revenues are to be 

changed and direct that the committees having jurisdiction to 

determine and recommend changes in the revenue laws, bills, 

and resolutions to accomplish a change of such total amount; 

(3) specify the amounts by which the statutory limit on the 

public debt is to be changed and direct the committee having 

jurisdiction to recommend such change; or 

(4) specify and direct any combination of the matters described in paragraphs (1), (2), and (3) (including a direction to 

achieve deficit reduction). 

(b) LEGISLATIVE PROCEDURE.—If a concurrent resolution containing directives to one or more committees to determine and recommend changes in laws, bills, or resolutions is agreed to in accordance with subsection (a), and— 

(1) only one committee of the House or the Senate is directed to determine and recommend changes, that committee 

shall promptly make such determination and recommendations 

and report to its House reconciliation legislation containing 

such recommendations; or 

(2) more than one committee of the House or the Senate 

is directed to determine and recommend changes, each such 

committee so directed shall promptly make such determination 
Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974 34 

and recommendations and submit such recommendations to 

the Committee on the Budget of its House, which upon receiving all such recommendations, shall report to its House reconciliation legislation carrying out all such recommendations 

without any substantive revision. 

For purposes of this subsection, a reconciliation resolution is a concurrent resolution directing the Clerk of the House of Representatives or the Secretary of the Senate, as the case may be, to make 

specified changes in bills and resolutions which have not been enrolled. 

(c) COMPLIANCE WITH RECONCILIATION DIRECTIONS.—(1) Any 

committee of the House of Representatives or the Senate that is directed, pursuant to a concurrent resolution on the budget, to determine and recommend changes of the type described in paragraphs 

(1) and (2) of subsection (a) with respect to laws within its jurisdiction, shall be deemed to have complied with such directions— 

(A) if— 

(i) the amount of the changes of the type described in 

paragraph (1) of such subsection recommended by such 

committee do not exceed or fall below the amount of the 

changes such committee was directed by such concurrent 

resolution to recommend under that paragraph by more 

than— 

(I) in the Senate, 20 percent of the total of the 

amounts of the changes such committee was directed 

to make under paragraphs (1) and (2) of such subsection; or 

(II) in the House of Representatives, 20 percent of 

the sum of the absolute value of the changes the committee was directed to make under paragraph (1) and 

the absolute value of the changes the committee was 

directed to make under paragraph (2); and 

(ii) the amount of the changes of the type described in 

paragraph (2) of such subsection recommended by such 

committee do not exceed or fall below the amount of the 

changes such committee was directed by such concurrent 

resolution to recommend under that paragraph by more 

than— 

(I) in the Senate, 20 percent of the total of the 

amounts of the changes such committee was directed 

to make under paragraphs (1) and (2) of such subsection; or 

(II) in the House of Representatives, 20 percent of 

the sum of the absolute value of the changes the committee was directed to make under paragraph (1) and 

the absolute value of the changes the committee was 

directed to make under paragraph (2); and 

(B) if the total amount of the changes recommended by 

such committee is not less than the total of the amounts of the 

changes such committee was directed to make under paragraphs (1) and (2) of such subsection. 

(2)(A) Upon the reporting to the Committee on the Budget 

of the Senate of a recommendation that shall be deemed to 

have complied with such directions solely by virtue of this sub-
35 Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974 

section, the chairman of that committee may file with the Senate appropriately revised allocations under section 302(a) and 

revised functional levels and aggregates to carry out this subsection. 

(B) Upon the submission to the Senate of a conference report recommending a reconciliation bill or resolution in which 

a committee shall be deemed to have complied with such directions solely by virtue of this subsection, the chairman of the 

Committee on the Budget of the Senate may file with the Senate appropriately revised allocations under section 302(a) and 

revised functional levels and aggregates to carry out this subsection. 

(C) Allocations, functional levels, and aggregates revised 

pursuant to this paragraph shall be considered to be allocations, functional levels, and aggregates contained in the concurrent resolution on the budget pursuant to section 301. 

(D) Upon the filing of revised allocations pursuant to this 

paragraph, the reporting committee shall report revised allocations pursuant to section 302(b) to carry out this subsection. 

(d) LIMITATION ON AMENDMENTS TO RECONCILIATION BILLS AND

RESOLUTIONS.— 

(1) It shall not be in order in the House of Representatives 

to consider any amendment to a reconciliation bill or reconciliation resolution if such amendment would have the effect of increasing any specific budget outlays above the level of such 

outlays provided in the bill or resolution (for the fiscal years 

covered by the reconciliation instructions set forth in the most 

recently agreed to concurrent resolution on the budget), or 

would have the effect of reducing any specific Federal revenues 

below the level of such revenues provided in the bill or resolution (for such fiscal years), unless such amendment makes at 

least an equivalent reduction in other specific budget outlays, 

an equivalent increase in other specific Federal revenues, or an 

equivalent combination thereof (for such fiscal years), except 

that a motion to strike a provision providing new budget authority or new entitlement authority may be in order. 

(2) It shall not be in order in the Senate to consider any 

amendment to a reconciliation bill or reconciliation resolution 

if such amendment would have the effect of decreasing any 

specific budget outlay reductions below the level of such outlay 

reductions provided (for the fiscal years covered) in the reconciliation instructions which relate to such bill or resolution 

set forth in a resolution providing for reconciliation, or would 

have the effect of reducing Federal revenue increases below the 

level of such revenue increases provided (for such fiscal years) 

in such instructions relating to such bill or resolution, unless 

such amendment makes a reduction in other specific budget 

outlays, an increase in other specific Federal revenues, or a 

combination thereof (for such fiscal years) at least equivalent 

to any increase in outlays or decrease in revenues provided by 

such amendment, except that a motion to strike a provision 

shall always be in order. 

(3) Paragraphs (1) and (2) shall not apply if a declaration 

of war by the Congress is in effect. 
Sec. 311 CONGRESSIONAL BUDGET ACT OF 1974 36 

(4) For purposes of this section, the levels of budget outlays and Federal revenues for a fiscal year shall be determined 

on the basis of estimates made by the Committee on the Budget of the House of Representatives or of the Senate, as the case 

may be. 

(5) The Committee on Rules of the House of Representatives may make in order amendments to achieve changes specified by reconciliation directives contained in a concurrent resolution on the budget if a committee or committees of the House 

fail to submit recommended changes to its Committee on the 

Budget pursuant to its instruction. 

(e) PROCEDURE IN THE SENATE.— (1) Except as provided in paragraph (2), the provisions of 

section 305 for the consideration in the Senate of concurrent 

resolutions on the budget and conference reports thereon shall 

also apply to the consideration in the Senate of reconciliation 

bills reported under subsection (b) and conference reports 

thereon. 

(2) Debate in the Senate on any reconciliation bill reported 

under subsection (b), and all amendments thereto and debatable motions and appeals in connection therewith, shall be limited to not more than 20 hours. 

(f) COMPLETION OF RECONCILIATION PROCESS.—It shall not be 

in order in the House of Representatives to consider any resolution 

providing for an adjournment period of more than three calendar 

days during the month of July until the House of Representatives 

has completed action on the reconciliation legislation for the fiscal 

year beginning on October 1 of the calendar year to which the adjournment resolution pertains, if reconciliation legislation is required to be reported by the concurrent resolution on the budget 

for such fiscal year. 

(g) LIMITATION ON CHANGES TO THE SOCIAL SECURITY ACT.— Notwithstanding any other provision of law, it shall not be in order 

in the Senate or the House of Representatives to consider any reconciliation bill or reconciliation resolution reported pursuant to a 

concurrent resolution on the budget agreed to under section 301 or 

304, or a joint resolution pursuant to section 258C of the Balanced 

Budget and Emergency Deficit Control Act of 1985, or any amendment thereto or conference report thereon, that contains recommendations with respect to the old-age, survivors, and disability 

insurance program established under title II of the Social Security 

Act. 

BUDGET-RELATED LEGISLATION MUST BE WITHIN APPROPRIATE

LEVELS

SEC. 311. ø2 U.S.C. 642¿ (a) ENFORCEMENT OF BUDGET AGGRE- GATES.— 

(1) IN THE HOUSE OF REPRESENTATIVES.—Except as provided by subsection (c), after the Congress has completed action on a concurrent resolution on the budget for a fiscal year, 

it shall not be in order in the House of Representatives to consider any bill, joint resolution, amendment, motion, or conference report providing new budget authority or reducing revenues, if— 
37 Sec. 311 CONGRESSIONAL BUDGET ACT OF 1974 

(A) the enactment of that bill or resolution as reported; 

(B) the adoption and enactment of that amendment; or 

(C) the enactment of that bill or resolution in the form 

recommended in that conference report; 

would cause the level of total new budget authority or total 

outlays set forth in the applicable concurrent resolution on the 

budget for the first fiscal year to be exceeded, or would cause 

revenues to be less than the level of total revenues set forth 

in that concurrent resolution for the first fiscal year or for the 

total of that first fiscal year and the ensuing fiscal years for 

which allocations are provided under section 302(a), except 

when a declaration of war by the Congress is in effect. 

(2) IN THE SENATE.—After a concurrent resolution on the 

budget is agreed to, it shall not be in order in the Senate to 

consider any bill, joint resolution, amendment, motion, or conference report that— 

(A) would cause the level of total new budget authority 

or total outlays set forth for the first fiscal year in the applicable resolution to be exceeded; or 

(B) would cause revenues to be less than the level of 

total revenues set forth for that first fiscal year or for the 

total of that first fiscal year and the ensuing fiscal years 

in the applicable resolution for which allocations are provided under section 302(a). 

(3) ENFORCEMENT OF SOCIAL SECURITY LEVELS IN THE SENATE.—After a concurrent resolution on the budget is agreed to, 

it shall not be in order in the Senate to consider any bill, joint 

resolution, amendment, motion, or conference report that 

would cause a decrease in social security surpluses or an increase in social security deficits relative to the levels set forth 

in the applicable resolution for the first fiscal year or for the 

total of that fiscal year and the ensuing fiscal years for which 

allocations are provided under section 302(a). 

(b) SOCIAL SECURITY LEVELS.— 

(1) IN GENERAL.—For purposes of subsection (a)(3), social 

security surpluses equal the excess of social security revenues 

over social security outlays in a fiscal year or years with such 

an excess and social security deficits equal the excess of social 

security outlays over social security revenues in a fiscal year 

or years with such an excess. 

(2) TAX TREATMENT.—For purposes of subsection (a)(3), no 

provision of any legislation involving a change in chapter 1 of 

the Internal Revenue Code of 1986 shall be treated as affecting 

the amount of social security revenues or outlays unless that 

provision changes the income tax treatment of social security 

benefits. 

(c) EXCEPTION IN THE HOUSE OF REPRESENTATIVES.—Subsection (a)(1) shall not apply in the House of Representatives to 

any bill, joint resolution, or amendment that provides new budget 

authority for a fiscal year or to any conference report on any such 

bill or resolution, if— 

(1) the enactment of that bill or resolution as reported; 

(2) the adoption and enactment of that amendment; or 
Sec. 312 CONGRESSIONAL BUDGET ACT OF 1974 38 

19The Congressional Budget Office is not required to prepare a report under section 258 pursuant to section 104(b) of the Budget Control Act of 2011 (Public Law 112–25). See page 178. 

(3) the enactment of that bill or resolution in the form recommended in that conference report; 

would not cause the appropriate allocation of new budget authority 

made pursuant to section 302(a) for that fiscal year to be exceeded. 

DETERMINATIONS AND POINTS OF ORDER

SEC. 312. ø2 U.S.C. 643¿ (a) BUDGET COMMITTEE DETERMINATIONS.—For purposes of this title and title IV, the levels of new 

budget authority, outlays, direct spending, new entitlement authority, and revenues for a fiscal year shall be determined on the basis 

of estimates made by the Committee on the Budget of the House 

of Representatives or the Senate, as applicable. 

(b) DISCRETIONARY SPENDING POINT OF ORDER IN THE SENATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, it shall not be in order in the Senate to consider any 

bill or resolution (or amendment, motion, or conference report 

on that bill or resolution) that would exceed any of the discretionary spending limits in section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985. 

(2) EXCEPTIONS.—This subsection shall not apply if a declaration of war by the Congress is in effect or if a joint resolution pursuant to section 258 of the Balanced Budget and Emergency Deficit Control Act of 1985 19 has been enacted. 

(c) MAXIMUM DEFICIT AMOUNT POINT OF ORDER IN THE SEN- ATE.—It shall not be in order in the Senate to consider any concurrent resolution on the budget for a fiscal year, or to consider any 

amendment to that concurrent resolution, or to consider a conference report on that concurrent resolution, if— 

(1) the level of total outlays for the first fiscal year set 

forth in that concurrent resolution or conference report exceeds; or 

(2) the adoption of that amendment would result in a level 

of total outlays for that fiscal year that exceeds; 

the recommended level of Federal revenues for that fiscal year, by 

an amount that is greater than the maximum deficit amount, if 

any, specified in the Balanced Budget and Emergency Deficit Control Act of 1985 for that fiscal year. 

(d) TIMING OF POINTS OF ORDER IN THE SENATE.—A point of 

order under this Act may not be raised against a bill, resolution, 

amendment, motion, or conference report while an amendment or 

motion, the adoption of which would remedy the violation of this 

Act, is pending before the Senate. 

(e) POINTS OF ORDER IN THE SENATE AGAINST AMENDMENTS

BETWEEN THE HOUSES.—Each provision of this Act that establishes 

a point of order against an amendment also establishes a point of 

order in the Senate against an amendment between the Houses. If 

a point of order under this Act is raised in the Senate against an 

amendment between the Houses and the point of order is sustained, the effect shall be the same as if the Senate had disagreed 

to the amendment. 
39 Sec. 313 CONGRESSIONAL BUDGET ACT OF 1974 

(f) EFFECT OF A POINT OF ORDER IN THE SENATE.—In the Senate, if a point of order under this Act against a bill or resolution 

is sustained, the Presiding Officer shall then recommit the bill or 

resolution to the committee of appropriate jurisdiction for further 

consideration. 

EXTRANEOUS MATTER IN RECONCILIATION LEGISLATION

SEC. 313. ø2 U.S.C. 644¿ (a) IN GENERAL.—When the Senate 

is considering a reconciliation bill or a reconciliation resolution pursuant to section 310 (whether that bill or resolution originated in 

the Senate or the House) or section 258C of the Balanced Budget 

and Emergency Deficit Control Act of 1985, upon a point of order 

being made by any Senator against material extraneous to the instructions to a committee which is contained in any title or provision of the bill or resolution or offered as an amendment to the bill 

or resolution, and the point of order is sustained by the Chair, any 

part of said title or provision that contains material extraneous to 

the instructions to said Committee as defined in subsection (b) 

shall be deemed stricken from the bill and may not be offered as 

an amendment from the floor. 

(b) EXTRANEOUS PROVISIONS.—(1)(A) Except as provided in 

paragraph (2), a provision of a reconciliation bill or reconciliation 

resolution considered pursuant to section 310 shall be considered 

extraneous if such provision does not produce a change in outlays 

or revenue, including changes in outlays and revenues brought 

about by changes in the terms and conditions under which outlays 

are made or revenues are required to be collected (but a provision 

in which outlay decreases or revenue increases exactly offset outlay 

increases or revenue decreases shall not be considered extraneous 

by virtue of this subparagraph); (B) any provision producing an increase in outlays or decrease in revenues shall be considered extraneous if the net effect of provisions reported by the Committee reporting the title containing the provision is that the Committee 

fails to achieve its reconciliation instructions; (C) a provision that 

is not in the jurisdiction of the Committee with jurisdiction over 

said title or provision shall be considered extraneous; (D) a provision shall be considered extraneous if it produces changes in outlays or revenues which are merely incidental to the non-budgetary 

components of the provision; (E) a provision shall be considered to 

be extraneous if it increases, or would increase, net outlays, or if 

it decreases, or would decrease, revenues during a fiscal year after 

the fiscal years covered by such reconciliation bill or reconciliation 

resolution, and such increases or decreases are greater than outlay 

reductions or revenue increases resulting from other provisions in 

such title in such year; and (F) a provision shall be considered extraneous if it violates section 310(g). 

(2) A Senate-originated provision shall not be considered extraneous under paragraph (1)(A) if the Chairman and Ranking Minority Member of the Committee on the Budget and the Chairman and 

Ranking Minority Member of the Committee which reported the 

provision certify that: (A) the provision mitigates direct effects 

clearly attributable to a provision changing outlays or revenue and 

both provisions together produce a net reduction in the deficit; (B) 

the provision will result in a substantial reduction in outlays or a 
Sec. 313 CONGRESSIONAL BUDGET ACT OF 1974 40 

substantial increase in revenues during fiscal years after the fiscal 

years covered by the reconciliation bill or reconciliation resolution; 

(C) a reduction of outlays or an increase in revenues is likely to 

occur as a result of the provision, in the event of new regulations 

authorized by the provision or likely to be proposed, court rulings 

on pending litigation, or relationships between economic indices 

and stipulated statutory triggers pertaining to the provision, other 

than the regulations, court rulings or relationships currently projected by the Congressional Budget Office for scorekeeping purposes; or (D) such provision will be likely to produce a significant 

reduction in outlays or increase in revenues but, due to insufficient 

data, such reduction or increase cannot be reliably estimated. 

(3) A provision reported by a committee shall not be considered 

extraneous under paragraph (1)(C) if (A) the provision is an integral part of a provision or title, which if introduced as a bill or resolution would be referred to such committee, and the provision sets 

forth the procedure to carry out or implement the substantive provisions that were reported and which fall within the jurisdiction of 

such committee; or (B) the provision states an exception to, or a 

special application of, the general provision or title of which it is 

a part and such general provision or title if introduced as a bill or 

resolution would be referred to such committee. 

(c) EXTRANEOUS MATERIALS.—Upon the reporting or discharge 

of a reconciliation bill or resolution pursuant to section 310 in the 

Senate, and again upon the submission of a conference report on 

such a reconciliation bill or resolution, the Committee on the Budget of the Senate shall submit for the record a list of material considered to be extraneous under subsections (b)(1)(A), (b)(1)(B), and 

(b)(1)(E) of this section to the instructions of a committee as provided in this section. The inclusion or exclusion of a provision shall 

not constitute a determination of extraneousness by the Presiding 

Officer of the Senate. 

(d) CONFERENCE REPORTS.—When the Senate is considering a 

conference report on, or an amendment between the Houses in relation to, a reconciliation bill or reconciliation resolution pursuant 

to section 310, upon— 

(1) a point of order being made by any Senator against extraneous material meeting the definition of subsections 

(b)(1)(A), (b)(1)(B), (b)(1)(D), (b)(1)(E), or (b)(1)(F), and 

(2) such point of order being sustained, 

such material contained in such conference report or amendment 

shall be deemed stricken, and the Senate shall proceed, without intervening action or motion, to consider the question of whether the 

Senate shall recede from its amendment and concur with a further 

amendment, or concur in the House amendment with a further 

amendment, as the case may be, which further amendment shall 

consist of only that portion of the conference report or House 

amendment, as the case may be, not so stricken. Any such motion 

in the Senate shall be debatable for two hours. In any case in 

which such point of order is sustained against a conference report 

(or Senate amendment derived from such conference report by operation of this subsection), no further amendment shall be in order. 

(e) GENERAL POINT OF ORDER.—Notwithstanding any other law 

or rule of the Senate, it shall be in order for a Senator to raise a 
41 Sec. 314 CONGRESSIONAL BUDGET ACT OF 1974 

20 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 reads as 

follows: 

(A) EMERGENCY APPROPRIATIONS; OVERSEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM.—If, for any fiscal year, appropriations for discretionary accounts are enacted that— 

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

basis and the President subsequently so designates, or 

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

statute on an account by account basis and the President subsequently so designates, the adjustment shall be the total of such appropriations in discretionary accounts designated as emergency 

requirements or for Overseas Contingency Operations/Global War on Terrorism, as applicable. 

See page 88. 

single point of order that several provisions of a bill, resolution, 

amendment, motion, or conference report violate this section. The 

Presiding Officer may sustain the point of order as to some or all 

of the provisions against which the Senator raised the point of 

order. If the Presiding Officer so sustains the point of order as to 

some of the provisions (including provisions of an amendment, motion, or conference report) against which the Senator raised the 

point of order, then only those provisions (including provisions of 

an amendment, motion, or conference report) against which the 

Presiding Officer sustains the point of order shall be deemed stricken pursuant to this section. Before the Presiding Officer rules on 

such a point of order, any Senator may move to waive such a point 

of order as it applies to some or all of the provisions against which 

the point of order was raised. Such a motion to waive is amendable 

in accordance with the rules and precedents of the Senate. After 

the Presiding Officer rules on such a point of order, any Senator 

may appeal the ruling of the Presiding Officer on such a point of 

order as it applies to some or all of the provisions on which the 

Presiding Officer ruled. 

SEC. 314. ø2 U.S.C. 645¿ (a) ADJUSTMENTS.—After the reporting of a bill or joint resolution or the offering of an amendment 

thereto or the submission of a conference report thereon, the chairman of the Committee on the Budget of the House of Representatives or the Senate may make appropriate budgetary adjustments 

of new budget authority and the outlays flowing therefrom in the 

same amount as required by section 251(b) of the Balanced Budget 

and Emergency Deficit Control Act of 1985. 

(b) APPLICATION OF ADJUSTMENTS.—The adjustments made 

pursuant to subsection (a) for legislation shall— 

(1) apply while that legislation is under consideration; 

(2) take effect upon the enactment of that legislation; and 

(3) be published in the Congressional Record as soon as 

practicable. 

(c) REPORTING REVISED SUBALLOCATIONS.—Following any adjustment made under subsection (a), the Committees on Appropriations of the Senate and the House of Representatives may report 

appropriately revised suballocations under section 302(b) to carry 

out this section. 

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

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

or amendment thereto or conference report thereon, contains a provision providing new budget authority and outlays or reducing revenue, and a designation of such provision as an emergency requirement pursuant to 251(b)(2)(A) 20 of the Balanced Budget and Emergency Deficit Control Act of 1985, the chair of the Committee on 
Sec. 314 CONGRESSIONAL BUDGET ACT OF 1974 42 

the Budget of the House of Representatives shall not count the 

budgetary effects of such provision for purposes of title III and title 

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

House of Representatives. 

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

joint resolution, or amendment thereto or conference report 

thereon, contains a provision providing new budget authority 

and outlays or reducing revenue, and a designation of such 

provision as an emergency pursuant to paragraph (1), the chair 

of the Committee on the Budget shall not count the budgetary 

effects of such provision for purposes of this title and title IV 

and the Rules of the House of Representatives. 

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

strike a designation under subparagraph (A) shall be excluded from an evaluation of budgetary effects for purposes 

of this title and title IV and the Rules of the House of Representatives. 

(C) An amendment offered under subparagraph (B) 

that also proposes to reduce each amount appropriated or 

otherwise made available by the pending measure that is 

not required to be appropriated or otherwise made available shall be in order at any point in the reading of the 

pending measure. 

(e) SENATE POINT OF ORDER AGAINST AN EMERGENCY DESIGNATION.— 

(1) IN GENERAL.—When the Senate is considering a bill, 

resolution, amendment, motion, amendment between the 

Houses, or conference report, if a point of order is made by a 

Senator against an emergency designation in that measure, 

that provision making such a designation shall be stricken 

from the measure and may not be offered as an amendment 

from the floor. 

(2) SUPERMAJORITY WAIVER AND APPEALS.— 

(A) WAIVER.—Paragraph (1) may be waived or suspended in the Senate only by an affirmative vote of threefifths of the Members, duly chosen and sworn. 

(B) APPEALS.—Appeals in the Senate from the decisions of the Chair relating to any provision of this subsection shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager 

of the bill or joint resolution, as the case may be. An affirmative vote of threefifths of the Members of the Senate, 

duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised 

under this subsection. 

(3) DEFINITION OF AN EMERGENCY DESIGNATION.—For purposes of paragraph (1), a provision shall be considered an 

emergency designation if it designates any item pursuant to 

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

Deficit Control Act of 1985. 

(4) FORM OF THE POINT OF ORDER.—A point of order under 

paragraph (1) may be raised by a Senator as provided in section 313(e) of the Congressional Budget Act of 1974. 
43 Sec. 315 CONGRESSIONAL BUDGET ACT OF 1974 

(5) CONFERENCE REPORTS.—When the Senate is considering a conference report on, or an amendment between the 

Houses in relation to, a bill, upon a point of order being made 

by any Senator pursuant to this section, and such point of 

order being sustained, such material contained in such conference report shall be deemed stricken, and the Senate shall 

proceed to consider the question of whether the Senate shall 

recede from its amendment and concur with a further amendment, or concur in the House amendment with a further 

amendment, as the case may be, which further amendment 

shall consist of only that portion of the conference report or 

House amendment, as the case may be, not so stricken. Any 

such motion in the Senate shall be debatable. In any case in 

which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment 

shall be in order. 

(f) ENFORCEMENT OF DISCRETIONARY SPENDING CAPS.—It shall 

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

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

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

Deficit Control Act to be exceeded. 

EFFECT OF ADOPTION OF A SPECIAL ORDER OF BUSINESS IN THE

HOUSE OF REPRESENTATIVES

SEC. 315. ø2 U.S.C. 645a¿ For purposes of a reported bill or 

joint resolution considered in the House of Representatives pursuant to a special order of business, the term ‘‘as reported’’ in this 

title or title IV shall be considered to refer to the text made in 

order as an original bill or joint resolution for the purpose of 

amendment or to the text on which the previous question is ordered directly to passage, as the case may be. 
Sec. 401 CONGRESSIONAL BUDGET ACT OF 1974 44 

21 In the House, section 401(b) was clarified by section 2(a)(2) of H. Res. 5 (106th Congress) 

on January 6, 1999, to explain that pending the adoption by the Congress of a concurrent resolution on the budget for fiscal year 2000, a provision in a reported bill or joint resolution, or in 

an amendment thereto or a conference report thereon, that establishes a specified or minimum 

level of compensation to be funded by annual discretionary appropriations should not be considered as providing new entitlement authority within the meaning of the Congressional Budget 

Act of 1974. This provision has been extended by House Resolutions through the 112th Congress. 22So in law. The reference should be to ‘‘section 302(a)’’. 

Title IV—Additional Provisions to 

Improve Fiscal Procedures 

PART A—GENERAL PROVISIONS

BUDGET-RELATED LEGISLATION NOT SUBJECT TO APPROPRIATIONS

SEC. 401. ø2 U.S.C. 651¿ (a) CONTROLS ON CERTAIN BUDGETRELATED LEGISLATION NOT SUBJECT TO APPROPRIATIONS.—It shall 

not be in order in either the House of Representatives or the Senate to consider any bill or joint resolution (in the House of Representatives only, as reported), amendment, motion, or conference 

report that provides— 

(1) new authority to enter into contracts under which the 

United States is obligated to make outlays; 

(2) new authority to incur indebtedness (other than indebtedness incurred under chapter 31 of title 31 of the United 

States Code) for the repayment of which the United States is 

liable; or 

(3) new credit authority; 

unless that bill, joint resolution, amendment, motion, or conference 

report also provides that the new authority is to be effective for any 

fiscal year only to the extent or in the amounts provided in advance in appropriation Acts. 

(b) LEGISLATION PROVIDING NEW ENTITLEMENT AUTHORITY.— 

(1) POINT OF ORDER.—It shall not be in order in either the 

House of Representatives or the Senate to consider any bill or 

joint resolution (in the House of Representatives only, as reported), amendment, motion, or conference report that provides 

new entitlement authority that is to become effective during 

the current fiscal year. 21

(2) If any committee of the House of Representatives or the 

Senate reports any bill or resolution which provides new entitlement authority which is to become effective during a fiscal 

year and the amount of new budget authority which will be required for such fiscal year if such bill or resolution is enacted 

as so reported exceeds the appropriate allocation of new budget 

authority reported under section 302(b) 22 in connection with 

the most recently agreed to concurrent resolution on the budget for such fiscal year, such bill or resolution shall then be referred to the Committee on Appropriations of the Senate or 

may then be referred to the Committee on Appropriations of 

the House, as the case may be, with instructions to report it, 

with the committee’s recommendations, within 15 calendar 

days (not counting any day on which that House is not in session) beginning with the day following the day on which it is 
45 Sec. 402 CONGRESSIONAL BUDGET ACT OF 1974 

23See clause 3(c)(3) of Rule XIII of the Rules of the House of Representatives on page 264. 

The clause reads as follows: 

‘‘(3) An estimate and comparison prepared by the Director of the Congressional Budget Office 

under section 402 of the Congressional Budget Act of 1974 if timely submitted to the committee 

before the filing of the report.’’ 

so referred. If the Committee on Appropriations of either 

House fails to report a bill or resolution referred to it under 

this paragraph within such 15–day period, the committee shall 

automatically be discharged from further consideration of such 

bill or resolution and such bill or resolution shall be placed on 

the appropriate calendar. 

(3) The Committee on Appropriations of each House shall 

have jurisdiction to report any bill or resolution referred to it 

under paragraph (2) with an amendment which limits the total 

amount of new spending authority provided in such bill or resolution. 

(c) EXCEPTIONS.— (1) Subsections (a) and (b) shall not apply to new spending 

authority if the budget authority for outlays which result from 

such new spending authority is derived— 

(A) from a trust fund established by the Social Security Act (as in effect on the date of the enactment of this 

Act); or 

(B) from any other trust fund, 90 percent or more of 

the receipts of which consist or will consist of amounts 

(transferred from the general fund of the Treasury) equivalent to amounts of taxes (related to the purposes for which 

such outlays are or will be made) received in the Treasury 

under specified provisions of the Internal Revenue Code of 

1954. 

(2) Subsections (a) and (b) shall not apply to new authority 

described in those subsections to the extent that— 

(A) the outlays resulting therefrom are made by an organization which is (i) a mixed-ownership Government corporation (as defined in section 201 of the Government Corporation Control Act), or (ii) a wholly owned Government 

corporation (as defined in section 101 of such Act) which 

is specifically exempted by law from compliance with any 

or all of the provisions of that Act, as of the date of enactment of the Balanced Budget and Emergency Deficit Control Act of 1985; or 

(B) the outlays resulting therefrom consist exclusively 

of the proceeds of gifts or bequests made to the United 

States for a specific purpose. 

ANALYSIS BY CONGRESSIONAL BUDGET OFFICE

SEC. 402. 23 ø2 U.S.C. 653¿ The Director of the Congressional 

Budget Office shall, to the extent practicable, prepare for each bill 

or resolution of a public character reported by any committee of the 

House of Representatives or the Senate (except the Committee on 

Appropriations of each House), and submit to such committee— 

(1) an estimate of the costs which would be incurred in 

carrying out such bill or resolution in the fiscal year in which 

it is to become effective and in each of the 4 fiscal years fol-
Sec. 404 CONGRESSIONAL BUDGET ACT OF 1974 46 

24Section 403 made amendments to the jurisdiction of the Committees on Appropriations of 

the House of Representatives and the Senate. These amendments have been omitted. 25The ‘‘General Accounting Office’’ was renamed the ‘‘Government Accountability Office’’ by 

the GAO Human Capital Reform Act of 2004 (Public Law 108–271, 118 Stat. 811, enacted July 

7, 2004). 

lowing such fiscal year, together with the basis for each such 

estimate; 

(2) a comparison of the estimates of costs described in 

paragraph (1), with any available estimates of costs made by 

such committee or by any Federal agency; and 

(3) a description of each method for establishing a Federal 

financial commitment contained in such bill or resolution. 

The estimates, comparison, and description so submitted shall be 

included in the report accompanying such bill or resolution if timely submitted to such committee before such report is filed. 

JURISDICTION OF THE APPROPRIATIONS COMMITTEES

SEC. 403.24 (a) AMENDMENT OF HOUSE RULES.— 

* * * * * * * 

(b) AMENDMENT OF SENATE RULES.— 

* * * * * * * 

STUDY BY THE GENERAL ACCOUNTING OFFICE25 OF FORMS OF FEDERAL FINANCIAL COMMITMENT THAT ARE NOT REVIEWED ANNUALLY

BY CONGRESS

SEC. 404. ø2 U.S.C. 654¿ The General Accounting Office25 shall 

study those provisions of law which provide mandatory spending 

and report to the Congress its recommendations for the appropriate 

form of financing for activities or programs financed by such provisions not later than eighteen months after the effective date of this 

section. Such report shall be revised from time to time. 

OFF-BUDGET AGENCIES, PROGRAMS, AND ACTIVITIES

SEC. 405. ø2 U.S.C. 655¿ (a) Notwithstanding any other provision of law, budget authority, credit authority, and estimates of 

outlays and receipts for activities of the Federal budget which are 

off-budget immediately prior to the date of enactment of this section, not including activities of the Federal Old-Age and Survivors 

Insurance and Federal Disability Insurance Trust Funds, shall be 

included in a budget submitted pursuant to section 1105 of title 31, 

United States Code, and in a concurrent resolution on the budget 

reported pursuant to section 301 or section 304 of this Act and 

shall be considered, for purposes of this Act, budget authority, outlays, and spending authority in accordance with definitions set 

forth in this Act. 

(b) All receipts and disbursements of the Federal Financing 

Bank with respect to any obligations which are issued, sold, or 

guaranteed by a Federal agency shall be treated as a means of financing such agency for purposes of section 1105 of title 31, United 

States Code, and for purposes of this Act. 
47 Sec. 421 CONGRESSIONAL BUDGET ACT OF 1974 

26This part was added to title IV of the Congressional Budget and Impoundment Control Act 

of 1974 by section 101(a)(2) of the Unfunded Mandates Reform Act of 1995 (Public Law 104– 

4; 109 Stat. 50). 

MEMBER USER GROUP

SEC. 406. ø2 U.S.C. 656¿ The Speaker of the House of Representatives, after consulting with the Minority Leader of the 

House, may appoint a Member User Group for the purpose of reviewing budgetary scorekeeping rules and practices of the House 

and advising the Speaker from time to time on the effect and impact of such rules and practices. 

PART B—FEDERAL MANDATES 26

SEC. 421. ø2 U.S.C. 658¿ DEFINITIONS. 

For purposes of this part: 

(1) AGENCY.—The term ‘‘agency’’ has the same meaning as 

defined in section 551(1) of title 5, United States Code, but 

does not include independent regulatory agencies. 

(2) AMOUNT.—The term ‘‘amount’’, with respect to an authorization of appropriations for Federal financial assistance, 

means the amount of budget authority for any Federal grant 

assistance program or any Federal program providing loan 

guarantees or direct loans. 

(3) DIRECT COSTS.—The term ‘‘direct costs’’— 

(A)(i) in the case of a Federal intergovernmental mandate, means the aggregate estimated amounts that all 

State, local, and tribal governments would be required to 

spend or would be prohibited from raising in revenues in 

order to comply with the Federal intergovernmental mandate; or 

(ii) in the case of a provision referred to in paragraph 

(5)(A)(ii), means the amount of Federal financial assistance 

eliminated or reduced; 

(B) in the case of a Federal private sector mandate, 

means the aggregate estimated amounts that the private 

sector will be required to spend in order to comply with 

the Federal private sector mandate; 

(C) shall be determined on the assumption that— 

(i) State, local, and tribal governments, and the 

private sector will take all reasonable steps necessary 

to mitigate the costs resulting from the Federal mandate, and will comply with applicable standards of 

practice and conduct established by recognized professional or trade associations; and 

(ii) reasonable steps to mitigate the costs shall not 

include increases in State, local, or tribal taxes or fees; 

and 

(D) shall not include— 

(i) estimated amounts that the State, local, and 

tribal governments (in the case of a Federal intergovernmental mandate) or the private sector (in the case 

of a Federal private sector mandate) would spend— 
Sec. 421 CONGRESSIONAL BUDGET ACT OF 1974 48 

(I) to comply with or carry out all applicable 

Federal, State, local, and tribal laws and regulations in effect at the time of the adoption of the 

Federal mandate for the same activity as is affected by that Federal mandate; or 

(II) to comply with or carry out State, local, 

and tribal governmental programs, or private-sector business or other activities in effect at the 

time of the adoption of the Federal mandate for 

the same activity as is affected by that mandate; 

or 

(ii) expenditures to the extent that such expenditures will be offset by any direct savings to the State, 

local, and tribal governments, or by the private sector, 

as a result of— 

(I) compliance with the Federal mandate; or 

(II) other changes in Federal law or regulation that are enacted or adopted in the same bill 

or joint resolution or proposed or final Federal 

regulation and that govern the same activity as is 

affected by the Federal mandate. 

(4) DIRECT SAVINGS.—The term ‘‘direct savings’’, when 

used with respect to the result of compliance with the Federal 

mandate— 

(A) in the case of a Federal intergovernmental mandate, means the aggregate estimated reduction in costs to 

any State, local, or tribal government as a result of compliance with the Federal intergovernmental mandate; and 

(B) in the case of a Federal private sector mandate, 

means the aggregate estimated reduction in costs to the 

private sector as a result of compliance with the Federal 

private sector mandate. 

(5) FEDERAL INTERGOVERNMENTAL MANDATE.—The term 

‘‘Federal intergovernmental mandate’’ means— 

(A) any provision in legislation, statute, or regulation 

that— 

(i) would impose an enforceable duty upon State, 

local, or tribal governments, except— 

(I) a condition of Federal assistance; or 

(II) a duty arising from participation in a voluntary Federal program, except as provided in 

subparagraph (B); or 

(ii) would reduce or eliminate the amount of authorization of appropriations for— 

(I) Federal financial assistance that would be 

provided to State, local, or tribal governments for 

the purpose of complying with any such previously 

imposed duty unless such duty is reduced or eliminated by a corresponding amount; or 

(II) the control of borders by the Federal Government; or reimbursement to State, local, or tribal governments for the net cost associated with illegal, deportable, and excludable aliens, including 

court-mandated expenses related to emergency 
49 Sec. 421 CONGRESSIONAL BUDGET ACT OF 1974 

health care, education or criminal justice; when 

such a reduction or elimination would result in increased net costs to State, local, or tribal governments in providing education or emergency health 

care to, or incarceration of, illegal aliens; except 

that this subclause shall not be in effect with respect to a State, local, or tribal government, to the 

extent that such government has not fully cooperated in the efforts of the Federal Government to 

locate, apprehend, and deport illegal aliens; 

(B) any provision in legislation, statute, or regulation 

that relates to a then-existing Federal program under 

which $500,000,000 or more is provided annually to State, 

local, and tribal governments under entitlement authority, 

if the provision— 

(i)(I) would increase the stringency of conditions of 

assistance to State, local, or tribal governments under 

the program; or 

(II) would place caps upon, or otherwise decrease, 

the Federal Government’s responsibility to provide 

funding to State, local, or tribal governments under 

the program; and 

(ii) the State, local, or tribal governments that 

participate in the Federal program lack authority 

under that program to amend their financial or programmatic responsibilities to continue providing required services that are affected by the legislation, 

statute, or regulation. 

(6) FEDERAL MANDATE.—The term ‘‘Federal mandate’’ 

means a Federal intergovernmental mandate or a Federal private sector mandate, as defined in paragraphs (5) and (7). 

(7) FEDERAL PRIVATE SECTOR MANDATE.—The term ‘‘Federal private sector mandate’’ means any provision in legislation, statute, or regulation that— 

(A) would impose an enforceable duty upon the private 

sector except— 

(i) a condition of Federal assistance; or 

(ii) a duty arising from participation in a voluntary Federal program; or 

(B) would reduce or eliminate the amount of authorization of appropriations for Federal financial assistance 

that will be provided to the private sector for the purposes 

of ensuring compliance with such duty. 

(8) LOCAL GOVERNMENT.—The term ‘‘local government’’ has 

the same meaning as defined in section 6501(6) of title 31, 

United States Code. 

(9) PRIVATE SECTOR.—The term ‘‘private sector’’ means all 

persons or entities in the United States, including individuals, 

partnerships, associations, corporations, and educational and 

nonprofit institutions, but shall not include State, local, or tribal governments. 

(10) REGULATION; RULE.—The term ‘‘regulation’’ or ‘‘rule’’ 

(except with respect to a rule of either House of the Congress) 
Sec. 422 CONGRESSIONAL BUDGET ACT OF 1974 50 

has the meaning of ‘‘rule’’ as defined in section 601(2) of title 

5, United States Code. 

(11) SMALL GOVERNMENT.—The term ‘‘small government’’ 

means any small governmental jurisdictions defined in section 

601(5) of title 5, United States Code, and any tribal government. 

(12) STATE.—The term ‘‘State’’ has the same meaning as 

defined in section 6501(9) of title 31, United States Code. 

(13) TRIBAL GOVERNMENT.—The term ‘‘tribal government’’ 

means any Indian tribe, band, nation, or other organized group 

or community, including any Alaska Native village or regional 

or village corporation as defined in or established pursuant to 

the Alaska Native Claims Settlement Act (85 Stat. 688; 43 

U.S.C. 1601 et seq.) which is recognized as eligible for the special programs and services provided by the United States to Indians because of their special status as Indians. 

SEC. 422. ø2 U.S.C. 658a¿ EXCLUSIONS. 

This part shall not apply to any provision in a bill, joint resolution, amendment, motion, or conference report before Congress 

that— 

(1) enforces constitutional rights of individuals; 

(2) establishes or enforces any statutory rights that prohibit discrimination on the basis of race, color, religion, sex, 

national origin, age, handicap, or disability; 

(3) requires compliance with accounting and auditing procedures with respect to grants or other money or property provided by the Federal Government; 

(4) provides for emergency assistance or relief at the request of any State, local, or tribal government or any official 

of a State, local, or tribal government; 

(5) is necessary for the national security or the ratification 

or implementation of international treaty obligations; 

(6) the President designates as emergency legislation and 

that the Congress so designates in statute; or 

(7) relates to the old-age, survivors, and disability insurance program under title II of the Social Security Act (including taxes imposed by sections 3101(a) and 3111(a) of the Internal Revenue Code of 1986 (relating to old-age, survivors, and 

disability insurance)). 

SEC. 423. ø2 U.S.C. 658b¿ DUTIES OF CONGRESSIONAL COMMITTEES. 

(a) IN GENERAL.—When a committee of authorization of the 

Senate or the House of Representatives reports a bill or joint resolution of public character that includes any Federal mandate, the 

report of the committee accompanying the bill or joint resolution 

shall contain the information required by subsections (c) and (d). 

(b) SUBMISSION OF BILLS TO THE DIRECTOR.—When a committee of authorization of the Senate or the House of Representatives orders reported a bill or joint resolution of a public character, 

the committee shall promptly provide the bill or joint resolution to 

the Director of the Congressional Budget Office and shall identify 

to the Director any Federal mandates contained in the bill or resolution. 
51 Sec. 423 CONGRESSIONAL BUDGET ACT OF 1974 

(c) REPORTS ON FEDERAL MANDATES.—Each report described 

under subsection (a) shall contain— 

(1) an identification and description of any Federal mandates in the bill or joint resolution, including the direct costs 

to State, local, and tribal governments, and to the private sector, required to comply with the Federal mandates; 

(2) a qualitative, and if practicable, a quantitative assessment of costs and benefits anticipated from the Federal mandates (including the effects on health and safety and the protection of the natural environment); and 

(3) a statement of the degree to which a Federal mandate 

affects both the public and private sectors and the extent to 

which Federal payment of public sector costs or the modification or termination of the Federal mandate as provided under 

section 425(a)(2) would affect the competitive balance between 

State, local, or tribal governments and the private sector including a description of the actions, if any, taken by the committee to avoid any adverse impact on the private sector or the 

competitive balance between the public sector and the private 

sector. 

(d) INTERGOVERNMENTAL MANDATES.—If any of the Federal 

mandates in the bill or joint resolution are Federal intergovernmental mandates, the report required under subsection (a) shall 

also contain— 

(1)(A) a statement of the amount, if any, of increase or decrease in authorization of appropriations under existing Federal financial assistance programs, or of authorization of appropriations for new Federal financial assistance, provided by 

the bill or joint resolution and usable for activities of State, 

local, or tribal governments subject to the Federal intergovernmental mandates; 

(B) a statement of whether the committee intends that the 

Federal intergovernmental mandates be partly or entirely unfunded, and if so, the reasons for that intention; and 

(C) if funded in whole or in part, a statement of whether 

and how the committee has created a mechanism to allocate 

the funding in a manner that is reasonably consistent with the 

expected direct costs among and between the respective levels 

of State, local, and tribal government; 

(2) any existing sources of Federal assistance in addition 

to those identified in paragraph (1) that may assist State, local, 

and tribal governments in meeting the direct costs of the Federal intergovernmental mandates; and 

(3) if the bill or joint resolution would make the reduction 

specified in section 421(5)(B)(i)(II), a statement of how the committee specifically intends the States to implement the reduction and to what extent the legislation provides additional 

flexibility, if any, to offset the reduction. 

(e) PREEMPTION CLARIFICATION AND INFORMATION.—When a 

committee of authorization of the Senate or the House of Representatives reports a bill or joint resolution of public character, 

the committee report accompanying the bill or joint resolution shall 

contain, if relevant to the bill or joint resolution, an explicit statement on the extent to which the bill or joint resolution is intended 
Sec. 424 CONGRESSIONAL BUDGET ACT OF 1974 52 

to preempt any State, local, or tribal law, and, if so, an explanation 

of the effect of such preemption. 

(f) PUBLICATION OF STATEMENT FROM THE DIRECTOR.— 

(1) IN GENERAL.—Upon receiving a statement from the Director under section 424, a committee of the Senate or the 

House of Representatives shall publish the statement in the 

committee report accompanying the bill or joint resolution to 

which the statement relates if the statement is available at the 

time the report is printed. 

(2) OTHER PUBLICATION OF STATEMENT OF DIRECTOR.—If 

the statement is not published in the report, or if the bill or 

joint resolution to which the statement relates is expected to 

be considered by the Senate or the House of Representatives 

before the report is published, the committee shall cause the 

statement, or a summary thereof, to be published in the Congressional Record in advance of floor consideration of the bill 

or joint resolution. 

SEC. 424. ø2 U.S.C. 658c¿ DUTIES OF THE DIRECTOR; STATEMENTS ON 

BILLS AND JOINT RESOLUTIONS OTHER THAN APPROPRIATIONS BILLS AND JOINT RESOLUTIONS. 

(a) FEDERAL INTERGOVERNMENTAL MANDATES IN REPORTED

BILLS AND RESOLUTIONS.—For each bill or joint resolution of a public character reported by any committee of authorization of the 

Senate or the House of Representatives, the Director of the Congressional Budget Office shall prepare and submit to the committee 

a statement as follows: 

(1) CONTENTS.—If the Director estimates that the direct 

cost of all Federal intergovernmental mandates in the bill or 

joint resolution will equal or exceed $50,000,000 (adjusted annually for inflation) in the fiscal year in which any Federal 

intergovernmental mandate in the bill or joint resolution (or in 

any necessary implementing regulation) would first be effective 

or in any of the 4 fiscal years following such fiscal year, the 

Director shall so state, specify the estimate, and briefly explain 

the basis of the estimate. 

(2) ESTIMATES.—Estimates required under paragraph (1) 

shall include estimates (and brief explanations of the basis of 

the estimates) of— 

(A) the total amount of direct cost of complying with 

the Federal intergovernmental mandates in the bill or 

joint resolution; 

(B) if the bill or resolution contains an authorization 

of appropriations under section 425(a)(2)(B), the amount of 

new budget authority for each fiscal year for a period not 

to exceed 10 years beyond the effective date necessary for 

the direct cost of the intergovernmental mandate; and 

(C) the amount, if any, of increase in authorization of 

appropriations under existing Federal financial assistance 

programs, or of authorization of appropriations for new 

Federal financial assistance, provided by the bill or joint 

resolution and usable by State, local, or tribal governments 

for activities subject to the Federal intergovernmental 

mandates. 
53 Sec. 424 CONGRESSIONAL BUDGET ACT OF 1974 

(3) ADDITIONAL FLEXIBILITY INFORMATION.—The Director 

shall include in the statement submitted under this subsection, 

in the case of legislation that makes changes as described in 

section 421(5)(B)(i)(II)— 

(A) if no additional flexibility is provided in the legislation, a description of whether and how the States can offset the reduction under existing law; or 

(B) if additional flexibility is provided in the legislation, whether the resulting savings would offset the reductions in that program assuming the States fully implement 

that additional flexibility. 

(4) ESTIMATE NOT FEASIBLE.—If the Director determines 

that it is not feasible to make a reasonable estimate that would 

be required under paragraphs (1) and (2), the Director shall 

not make the estimate, but shall report in the statement that 

the reasonable estimate cannot be made and shall include the 

reasons for that determination in the statement. If such determination is made by the Director, a point of order under this 

part shall lie only under section 425(a)(1) and as if the requirement of section 425(a)(1) had not been met. 

(b) FEDERAL PRIVATE SECTOR MANDATES IN REPORTED BILLS

AND JOINT RESOLUTIONS.—For each bill or joint resolution of a public character reported by any committee of authorization of the 

Senate or the House of Representatives, the Director of the Congressional Budget Office shall prepare and submit to the committee 

a statement as follows: 

(1) CONTENTS.—If the Director estimates that the direct 

cost of all Federal private sector mandates in the bill or joint 

resolution will equal or exceed $100,000,000 (adjusted annually 

for inflation) in the fiscal year in which any Federal private 

sector mandate in the bill or joint resolution (or in any necessary implementing regulation) would first be effective or in 

any of the 4 fiscal years following such fiscal year, the Director 

shall so state, specify the estimate, and briefly explain the 

basis of the estimate. 

(2) ESTIMATES.—Estimates required under paragraph (1) 

shall include estimates (and a brief explanation of the basis of 

the estimates) of— 

(A) the total amount of direct costs of complying with 

the Federal private sector mandates in the bill or joint resolution; and 

(B) the amount, if any, of increase in authorization of 

appropriations under existing Federal financial assistance 

programs, or of authorization of appropriations for new 

Federal financial assistance, provided by the bill or joint 

resolution usable by the private sector for the activities 

subject to the Federal private sector mandates. 

(3) ESTIMATE NOT FEASIBLE.—If the Director determines 

that it is not feasible to make a reasonable estimate that would 

be required under paragraphs (1) and (2), the Director shall 

not make the estimate, but shall report in the statement that 

the reasonable estimate cannot be made and shall include the 

reasons for that determination in the statement. 
Sec. 425 CONGRESSIONAL BUDGET ACT OF 1974 54 

27 Clause 11(a) of Rule XVIII of the Rules of the House of Representatives (112th Congress) 

provides for the enforcement of this section. Such paragraph provides as follows: 

‘‘(a) In the Committee of the Whole on the state of the Union, an amendment proposing only 

to strike an unfunded mandate from the portion of the bill then open to amendment, if otherwise in order, may be precluded from consideration only by specific terms of a special order of 

the House.’’ 

(c) LEGISLATION FALLING BELOW THE DIRECT COSTS THRESHOLDS.—If the Director estimates that the direct costs of a Federal 

mandate will not equal or exceed the thresholds specified in subsections (a) and (b), the Director shall so state and shall briefly explain the basis of the estimate. 

(d) AMENDED BILLS AND JOINT RESOLUTIONS; CONFERENCE RE- PORTS.—If a bill or joint resolution is passed in an amended form 

(including if passed by one House as an amendment in the nature 

of a substitute for the text of a bill or joint resolution from the 

other House) or is reported by a committee of conference in amended form, and the amended form contains a Federal mandate not 

previously considered by either House or which contains an increase in the direct cost of a previously considered Federal mandate, then the committee of conference shall ensure, to the greatest 

extent practicable, that the Director shall prepare a statement as 

provided in this subsection or a supplemental statement for the bill 

or joint resolution in that amended form. 

SEC. 425. ø2 U.S.C. 658d¿ LEGISLATION SUBJECT TO POINT OF 

ORDER.27

(a) IN GENERAL.—It shall not be in order in the Senate or the 

House of Representatives to consider— 

(1) any bill or joint resolution that is reported by a committee unless the committee has published a statement of the 

Director on the direct costs of Federal mandates in accordance 

with section 423(f) before such consideration, except this paragraph shall not apply to any supplemental statement prepared 

by the Director under section 424(d); and 

(2) any bill, joint resolution, amendment, motion, or conference report that would increase the direct costs of Federal 

intergovernmental mandates by an amount that causes the 

thresholds specified in section 424(a)(1) to be exceeded, unless— 

(A) the bill, joint resolution, amendment, motion, or 

conference report provides new budget authority or new 

entitlement authority in the House of Representatives or 

direct spending authority in the Senate for each fiscal year 

for such mandates included in the bill, joint resolution, 

amendment, motion, or conference report in an amount 

equal to or exceeding the direct costs of such mandate; or 

(B) the bill, joint resolution, amendment, motion, or 

conference report includes an authorization for appropriations in an amount equal to or exceeding the direct costs 

of such mandate, and— 

(i) identifies a specific dollar amount of the direct 

costs of such mandate for each year up to 10 years 

during which such mandate shall be in effect under 

the bill, joint resolution, amendment, motion or conference report, and such estimate is consistent with 
55 Sec. 425 CONGRESSIONAL BUDGET ACT OF 1974 

the estimate determined under subsection (e) for each 

fiscal year; 

(ii) identifies any appropriation bill that is expected to provide for Federal funding of the direct cost 

referred to under clause (i); and 

(iii)(I) provides that for any fiscal year the responsible Federal agency shall determine whether there 

are insufficient appropriations for that fiscal year to 

provide for the direct costs under clause (i) of such 

mandate, and shall (no later than 30 days after the 

beginning of the fiscal year) notify the appropriate authorizing committees of Congress of the determination 

and submit either— 

(aa) a statement that the agency has determined, based on a re-estimate of the direct costs 

of such mandate, after consultation with State, 

local, and tribal governments, that the amount appropriated is sufficient to pay for the direct costs 

of such mandate; or 

(bb) legislative recommendations for either 

implementing a less costly mandate or making 

such mandate ineffective for the fiscal year; 

(II) provides for expedited procedures for the consideration of the statement or legislative recommendations referred to in subclause (I) by Congress no later 

than 30 days after the statement or recommendations 

are submitted to Congress; and 

(III) provides that such mandate shall— 

(aa) in the case of a statement referred to in 

subclause (I)(aa), cease to be effective 60 days 

after the statement is submitted unless Congress 

has approved the agency’s determination by joint 

resolution during the 60-day period; 

(bb) cease to be effective 60 days after the 

date the legislative recommendations of the responsible Federal agency are submitted to Congress under subclause (I)(bb) unless Congress provides otherwise by law; or 

(cc) in the case that such mandate that has 

not yet taken effect, continue not to be effective 

unless Congress provides otherwise by law. 

(b) RULE OF CONSTRUCTION.—The provisions of subsection 

(a)(2)(B)(iii) shall not be construed to prohibit or otherwise restrict 

a State, local, or tribal government from voluntarily electing to remain subject to the original Federal intergovernmental mandate, 

complying with the programmatic or financial responsibilities of 

the original Federal intergovernmental mandate and providing the 

funding necessary consistent with the costs of Federal agency assistance, monitoring, and enforcement. 

(c) COMMITTEE ON APPROPRIATIONS.— 

(1) APPLICATION.—The provisions of subsection (a)— 

(A) shall not apply to any bill or resolution reported by 

the Committee on Appropriations of the Senate or the 

House of Representatives; except 
Sec. 426 CONGRESSIONAL BUDGET ACT OF 1974 56 

(B) shall apply to— 

(i) any legislative provision increasing direct costs 

of a Federal intergovernmental mandate contained in 

any bill or resolution reported by the Committee on 

Appropriations of the Senate or House of Representatives; 

(ii) any legislative provision increasing direct costs 

of a Federal intergovernmental mandate contained in 

any amendment offered to a bill or resolution reported 

by the Committee on Appropriations of the Senate or 

House of Representatives; 

(iii) any legislative provision increasing direct 

costs of a Federal intergovernmental mandate in a 

conference report accompanying a bill or resolution reported by the Committee on Appropriations of the Senate or House of Representatives; and 

(iv) any legislative provision increasing direct 

costs of a Federal intergovernmental mandate contained in any amendments in disagreement between 

the two Houses to any bill or resolution reported by 

the Committee on Appropriations of the Senate or 

House of Representatives. 

(2) CERTAIN PROVISIONS STRICKEN IN SENATE.—Upon a 

point of order being made by any Senator against any provision listed in paragraph (1)(B), and the point of order being 

sustained by the Chair, such specific provision shall be deemed 

stricken from the bill, resolution, amendment, amendment in 

disagreement, or conference report and may not be offered as 

an amendment from the floor. 

(d) DETERMINATIONS OF APPLICABILITY TO PENDING LEGISLATION.—For purposes of this section, in the Senate, the presiding officer of the Senate shall consult with the Committee on Governmental Affairs, to the extent practicable, on questions concerning 

the applicability of this part to a pending bill, joint resolution, 

amendment, motion, or conference report. 

(e) DETERMINATIONS OF FEDERAL MANDATE LEVELS.—For purposes of this section, in the Senate, the levels of Federal mandates 

for a fiscal year shall be determined based on the estimates made 

by the Committee on the Budget. 

SEC. 426. ø2 U.S.C. 658e¿ PROVISIONS RELATING TO THE HOUSE OF 

REPRESENTATIVES. 

(a) ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.—It 

shall not be in order in the House of Representatives to consider 

a rule or order that waives the application of section 425. 

(b) DISPOSITION OF POINTS OF ORDER.— 

(1) APPLICATION TO THE HOUSE OF REPRESENTATIVES.—This 

subsection shall apply only to the House of Representatives. 

(2) THRESHOLD BURDEN.—In order to be cognizable by the 

Chair, a point of order under section 425 or subsection (a) of 

this section must specify the precise language on which it is 

premised. 

(3) QUESTION OF CONSIDERATION.—As disposition of points 

of order under section 425 or subsection (a) of this section, the 
57 Sec. 428 CONGRESSIONAL BUDGET ACT OF 1974 

Chair shall put the question of consideration with respect to 

the proposition that is the subject of the points of order. 

(4) DEBATE AND INTERVENING MOTIONS.—A question of consideration under this section shall be debatable for 10 minutes 

by each Member initiating a point of order and for 10 minutes 

by an opponent on each point of order, but shall otherwise be 

decided without intervening motion except one that the House 

adjourn or that the Committee of the Whole rise, as the case 

may be. 

(5) EFFECT ON AMENDMENT IN ORDER AS ORIGINAL TEXT.— 

The disposition of the question of consideration under this subsection with respect to a bill or joint resolution shall be considered also to determine the question of consideration under this 

subsection with respect to an amendment made in order as 

original text. 

SEC. 427. ø2 U.S.C. 658f¿ REQUESTS TO THE CONGRESSIONAL BUDGET 

OFFICE FROM SENATORS. 

At the written request of a Senator, the Director shall, to the 

extent practicable, prepare an estimate of the direct costs of a Federal intergovernmental mandate contained in an amendment of 

such Senator. 

SEC. 428. ø2 U.S.C. 658g¿ CLARIFICATION OF APPLICATION. 

(a) IN GENERAL.—This part applies to any bill, joint resolution, 

amendment, motion, or conference report that reauthorizes appropriations, or that amends existing authorizations of appropriations, 

to carry out any statute, or that otherwise amends any statute, 

only if enactment of the bill, joint resolution, amendment, motion, 

or conference report— 

(1) would result in a net reduction in or elimination of authorization of appropriations for Federal financial assistance 

that would be provided to State, local, or tribal governments 

for use for the purpose of complying with any Federal intergovernmental mandate, or to the private sector for use to comply 

with any Federal private sector mandate, and would not eliminate or reduce duties established by the Federal mandate by 

a corresponding amount; or 

(2) would result in a net increase in the aggregate amount 

of direct costs of Federal intergovernmental mandates or Federal private sector mandates other than as described in paragraph (1). 

(b) DIRECT COSTS.— 

(1) IN GENERAL.—For purposes of this part, the direct cost 

of the Federal mandates in a bill, joint resolution, amendment, 

motion, or conference report that reauthorizes appropriations, 

or that amends existing authorizations of appropriations, to 

carry out a statute, or that otherwise amends any statute, 

means the net increase, resulting from enactment of the bill, 

joint resolution, amendment, motion, or conference report, in 

the amount described under paragraph (2)(A) over the amount 

described under paragraph (2)(B). 

(2) AMOUNTS.—The amounts referred to under paragraph 

(1) are— 
Sec. 428 CONGRESSIONAL BUDGET ACT OF 1974 58 

(A) the aggregate amount of direct costs of Federal 

mandates that would result under the statute if the bill, 

joint resolution, amendment, motion, or conference report 

is enacted; and 

(B) the aggregate amount of direct costs of Federal 

mandates that would result under the statute if the bill, 

joint resolution, amendment, motion, or conference report 

were not enacted. 

(3) EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.— For purposes of this section, in the case of legislation to extend 

authorization of appropriations, the authorization level that 

would be provided by the extension shall be compared to the 

authorization level for the last year in which authorization of 

appropriations is already provided. 
59 Sec. 502 CONGRESSIONAL BUDGET ACT OF 1974 

Title V—Credit Reform 

SEC. 500. SHORT TITLE. 

This title may be cited as the ‘‘Federal Credit Reform Act of 

1990’’. 

SEC. 501. ø2 U.S.C. 661¿ PURPOSES. 

The purposes of this title are to— 

(1) measure more accurately the costs of Federal credit 

programs; 

(2) place the cost of credit programs on a budgetary basis 

equivalent to other Federal spending; 

(3) encourage the delivery of benefits in the form most appropriate to the needs of beneficiaries; and 

(4) improve the allocation of resources among credit programs and between credit and other spending programs. 

SEC. 502. ø2 U.S.C. 661a¿ DEFINITIONS. 

For purposes of this title— 

(1) The term ‘‘direct loan’’ means a disbursement of funds 

by the Government to a non-Federal borrower under a contract 

that requires the repayment of such funds with or without interest. The term includes the purchase of, or participation in, 

a loan made by another lender and financing arrangements 

that defer payment for more than 90 days, including the sale 

of a government asset on credit terms. The term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims or the price support loans of the Commodity Credit Corporation. 

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

agreement by a Federal agency to make a direct loan when 

specified conditions are fulfilled by the borrower. 

(3) The term ‘‘loan guarantee’’ means any guarantee, insurance, or other pledge with respect to the payment of all or 

a part of the principal or interest on any debt obligation of a 

non-Federal borrower to a non-Federal lender, but does not include the insurance of deposits, shares, or other withdrawable 

accounts in financial institutions. 

(4) The term ‘‘loan guarantee commitment’’ means a binding agreement by a Federal agency to make a loan guarantee 

when specified conditions are fulfilled by the borrower, the 

lender, or any other party to the guarantee agreement. 

(5)(A) The term ‘‘cost’’ means the estimated long-term cost 

to the Government of a direct loan or loan guarantee or modification thereof, calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays. 

(B) The cost of a direct loan shall be the net present 

value, at the time when the direct loan is disbursed, of the 

following estimated cash flows: 

(i) loan disbursements; 

(ii) repayments of principal; and 

(iii) payments of interest and other payments by 

or to the Government over the life of the loan after ad-
Sec. 502 CONGRESSIONAL BUDGET ACT OF 1974 60 

justing for estimated defaults, prepayments, fees, penalties, and other recoveries; 

including the effects of changes in loan terms resulting 

from the exercise by the borrower of an option included in 

the loan contract. 

(C) The cost of a loan guarantee shall be the net 

present value, at the time when the guaranteed loan is 

disbursed, of the following estimated cash flows: 

(i) payments by the Government to cover defaults 

and delinquencies, interest subsidies, or other payments; and 

(ii) payments to the Government including origination and other fees, penalties and recoveries; 

including the effects of changes in loan terms resulting 

from the exercise by the guaranteed lender of an option included in the loan guarantee contract, or by the borrower 

of an option included in the guaranteed loan contract. 

(D) The cost of a modification is the difference between 

the current estimate of the net present value of the remaining cash flows under the terms of a direct loan or 

loan guarantee contract, and the current estimate of the 

net present value of the remaining cash flows under the 

terms of the contract, as modified. 

(E) In estimating net present values, the discount rate 

shall be the average interest rate on marketable Treasury 

securities of similar maturity to the cash flows of the direct loan or loan guarantee for which the estimate is being 

made. 

(F) When funds are obligated for a direct loan or loan 

guarantee, the estimated cost shall be based on the current assumptions, adjusted to incorporate the terms of the 

loan contract, for the fiscal year in which the funds are obligated. 

(6) The term ‘‘credit program account’’ means the budget 

account into which an appropriation to cover the cost of a direct loan or loan guarantee program is made and from which 

such cost is disbursed to the financing account. 

(7) The term ‘‘financing account’’ means the non-budget account or accounts associated with each credit program account 

which holds balances, receives the cost payment from the credit program account, and also includes all other cash flows to 

and from the Government resulting from direct loan obligations or loan guarantee commitments made on or after October 

1, 1991. 

(8) The term ‘‘liquidating account’’ means the budget account that includes all cash flows to and from the Government 

resulting from direct loan obligations or loan guarantee commitments made prior to October 1, 1991. These accounts shall 

be shown in the budget on a cash basis. 

(9) The term ‘‘modification’’ means any Government action 

that alters the estimated cost of an outstanding direct loan (or 

direct loan obligation) or an outstanding loan guarantee (or 

loan guarantee commitment) from the current estimate of cash 

flows. This includes the sale of loan assets, with or without re-
61 Sec. 504 CONGRESSIONAL BUDGET ACT OF 1974 

course, and the purchase of guaranteed loans. This also includes any action resulting from new legislation, or from the 

exercise of administrative discretion under existing law, that 

directly or indirectly alters the estimated cost of outstanding 

direct loans (or direct loan obligations) or loan guarantees (or 

loan guarantee commitments) such as a change in collection 

procedures. 

(10) The term ‘‘current’’ has the same meaning as in section 250(c)(9) of the Balanced Budget and Emergency Deficit 

Control Act of 1985. 

(11) The term ‘‘Director’’ means the Director of the Office 

of Management and Budget. 

SEC. 503. ø2 U.S.C. 661b¿ OMB AND CBO ANALYSIS, COORDINATION, 

AND REVIEW. 

(a) IN GENERAL.—For the executive branch, the Director shall 

be responsible for coordinating the estimates required by this title. 

The Director shall consult with the agencies that administer direct 

loan or loan guarantee programs. 

(b) DELEGATION.—The Director may delegate to agencies authority to make estimates of costs. The delegation of authority shall 

be based upon written guidelines, regulations, or criteria consistent 

with the definitions in this title. 

(c) COORDINATION WITH THE CONGRESSIONAL BUDGET OFFICE.—In developing estimation guidelines, regulations, or criteria 

to be used by Federal agencies, the Director shall consult with the 

Director of the Congressional Budget Office. 

(d) IMPROVING COST ESTIMATES.—The Director and the Director of the Congressional Budget Office shall coordinate the development of more accurate data on historical performance of direct loan 

and loan guarantee programs. They shall annually review the performance of outstanding direct loans and loan guarantees to improve estimates of costs. The Office of Management and Budget 

and the Congressional Budget Office shall have access to all agency 

data that may facilitate the development and improvement of estimates of costs. 

(e) HISTORICAL CREDIT PROGRAM COSTS.—The Director shall 

review, to the extent possible, historical data and develop the best 

possible estimates of adjustments that would convert aggregate historical budget data to credit reform accounting. 

(f) ADMINISTRATIVE COSTS.—The Director and the Director of 

the Congressional Budget Office shall each analyze and report to 

Congress on differences in long-term administrative costs for credit 

programs versus grant programs by January 31, 1992. Their reports shall recommend to Congress any changes, if necessary, in 

the treatment of administrative costs under credit reform accounting. 

SEC. 504. ø2 U.S.C. 661c¿ BUDGETARY TREATMENT. 

(a) PRESIDENT’S BUDGET.—Beginning with fiscal year 1992, the 

President’s budget shall reflect the costs of direct loan and loan 

guarantee programs. The budget shall also include the planned 

level of new direct loan obligations or loan guarantee commitments 

associated with each appropriations request. 
Sec. 504 CONGRESSIONAL BUDGET ACT OF 1974 62 

(b) APPROPRIATIONS REQUIRED.—Notwithstanding any other 

provision of law, new direct loan obligations may be incurred and 

new loan guarantee commitments may be made for fiscal year 1992 

and thereafter only to the extent that— 

(1) new budget authority to cover their costs is provided in 

advance in an appropriations Act; 

(2) a limitation on the use of funds otherwise available for 

the cost of a direct loan or loan guarantee program has been 

provided in advance in an appropriations Act; or 

(3) authority is otherwise provided in appropriation Acts. 

(c) EXEMPTION FOR MANDATORY PROGRAMS.—Subsections (b) 

and (e) shall not apply to a direct loan or loan guarantee program 

that— 

(1) constitutes an entitlement (such as the guaranteed student loan program or the veterans’ home loan guaranty program); or 

(2) all existing credit programs of the Commodity Credit 

Corporation on the date of enactment of this title. 

(d) BUDGET ACCOUNTING.— 

(1) The authority to incur new direct loan obligations, 

make new loan guarantee commitments, or modify outstanding 

direct loans (or direct loan obligations) or loan guarantees (or 

loan guarantee commitments) shall constitute new budget authority in an amount equal to the cost of the direct loan or loan 

guarantee in the fiscal year in which definite authority becomes available or indefinite authority is used. Such budget 

authority shall constitute an obligation of the credit program 

account to pay to the financing account. 

(2) The outlays resulting from new budget authority for 

the cost of direct loans or loan guarantees described in paragraph (1) shall be paid from the credit program account into 

the financing account and recorded in the fiscal year in which 

the direct loan or the guaranteed loan is disbursed or its costs 

altered. 

(3) All collections and payments of the financing accounts 

shall be a means of financing. 

(e) MODIFICATIONS.—An outstanding direct loan (or direct loan 

obligation) or loan guarantee (or loan guarantee commitment) shall 

not be modified in a manner that increases its costs unless budget 

authority for the additional cost has been provided in advance in 

an appropriations Act. 

(f) REESTIMATES.—When the estimated cost for a group of direct loans or loan guarantees for a given credit program made in 

a single fiscal year is reestimated in a subsequent year, the difference between the reestimated cost and the previous cost estimate shall be displayed as a distinct and separately identified subaccount in the credit program account as a change in program costs 

and a change in net interest. There is hereby provided permanent 

indefinite authority for these reestimates. 

(g) ADMINISTRATIVE EXPENSES.—All funding for an agency’s administration of a direct loan or loan guarantee program shall be 

displayed as distinct and separately identified subaccounts within 

the same budget account as the program’s cost. 
63 Sec. 505 CONGRESSIONAL BUDGET ACT OF 1974 

28So in law. Should read ‘‘section 405(b)’’. 

SEC. 505. ø2 U.S.C. 661d¿ AUTHORIZATIONS. 

(a) AUTHORIZATION OF APPROPRIATIONS FOR COSTS.—There are 

authorized to be appropriated to each Federal agency authorized to 

make direct loan obligations or loan guarantee commitments, such 

sums as may be necessary to pay the cost associated with such direct loan obligations or loan guarantee commitments. 

(b) AUTHORIZATION FOR FINANCING ACCOUNTS.—In order to implement the accounting required by this title, the President is authorized to establish such non-budgetary accounts as may be appropriate. 

(c) TREASURY TRANSACTIONS WITH THE FINANCING ACCOUNTS.—The Secretary of the Treasury shall borrow from, receive 

from, lend to, or pay to the financing accounts such amounts as 

may be appropriate. The Secretary of the Treasury may prescribe 

forms and denominations, maturities, and terms and conditions for 

the transactions described above, except that the rate of interest 

charged by the Secretary on lending to financing accounts (including amounts treated as lending to financing accounts by the Federal Financing Bank (hereinafter in this subsection referred to as 

the ‘‘Bank’’) pursuant to section 406(b) 28) and the rate of interest 

paid to financing accounts on uninvested balances in financing accounts shall be the same as the rate determined pursuant to section 502(5)(E). For guaranteed loans financed by the Bank and 

treated as direct loans by a Federal agency pursuant to section 

406(b),28 any fee or interest surcharge (the amount by which the 

interest rate charged exceeds the rate determined pursuant to section 502(5)(E)) that the Bank charges to a private borrower pursuant to section 6(c) of the Federal Financing Bank Act of 1973 shall 

be considered a cash flow to the Government for the purposes of 

determining the cost of the direct loan pursuant to section 502(5). 

All such amounts shall be credited to the appropriate financing account. The Bank is authorized to require reimbursement from a 

Federal agency to cover the administrative expenses of the Bank 

that are attributable to the direct loans financed for that agency. 

All such payments by an agency shall be considered administrative 

expenses subject to section 504(g). This subsection shall apply to 

transactions related to direct loan obligations or loan guarantee 

commitments made on or after October 1, 1991. The authorities described above shall not be construed to supersede or override the 

authority of the head of a Federal agency to administer and operate a direct loan or loan guarantee program. All of the transactions 

provided in this subsection shall be subject to the provisions of subchapter II of chapter 15 of title 31, United States Code. Cash balances of the financing accounts in excess of current requirements 

shall be maintained in a form of uninvested funds and the Secretary of the Treasury shall pay interest on these funds. 

(d) AUTHORIZATION FOR LIQUIDATING ACCOUNTS.—(1) Amounts 

in liquidating accounts shall be available only for payments resulting from direct loan obligations or loan guarantee commitments 

made prior to October 1, 1991, for— 
Sec. 506 CONGRESSIONAL BUDGET ACT OF 1974 64 

(A) interest payments and principal repayments to the 

Treasury or the Federal Financing Bank for amounts borrowed; 

(B) disbursements of loans; 

(C) default and other guarantee claim payments; 

(D) interest supplement payments; 

(E) payments for the costs of foreclosing, managing, 

and selling collateral that are capitalized or routinely deducted from the proceeds of sales; 

(F) payments to financing accounts when required for 

modifications; 

(G) administrative expenses, if— 

(i) amounts credited to the liquidating account 

would have been available for administrative expenses 

under a provision of law in effect prior to October 1, 

1991; and 

(ii) no direct loan obligation or loan guarantee 

commitment has been made, or any modification of a 

direct loan or loan guarantee has been made, since 

September 30, 1991; or 

(H) such other payments as are necessary for the liquidation of such direct loan obligations and loan guarantee 

commitments. 

(2) Amounts credited to liquidating accounts in any year 

shall be available only for payments required in that year. Any 

unobligated balances in liquidating accounts at the end of a fiscal year shall be transferred to miscellaneous receipts as soon 

as practicable after the end of the fiscal year. 

(3) If funds in liquidating accounts are insufficient to satisfy obligations and commitments of such accounts, there is 

hereby provided permanent, indefinite authority to make any 

payments required to be made on such obligations and commitments. 

(e) AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION

EXPENSES.—There are authorized to be appropriated to existing accounts such sums as may be necessary for salaries and expenses 

to carry out the responsibilities under this title. 

(f) REINSURANCE.—Nothing in this title shall be construed as 

authorizing or requiring the purchase of insurance or reinsurance 

on a direct loan or loan guarantee from private insurers. If any 

such reinsurance for a direct loan or loan guarantee is authorized, 

the cost of such insurance and any recoveries to the Government 

shall be included in the calculation of the cost. 

(g) ELIGIBILITY AND ASSISTANCE.—Nothing in this title shall be 

construed to change the authority or the responsibility of a Federal 

agency to determine the terms and conditions of eligibility for, or 

the amount of assistance provided by a direct loan or a loan guarantee. 

SEC. 506. ø2 U.S.C. 661e¿ TREATMENT OF DEPOSIT INSURANCE AND 

AGENCIES AND OTHER INSURANCE PROGRAMS. 

(a) IN GENERAL.—This title shall not apply to the credit or insurance activities of the Federal Deposit Insurance Corporation, 

National Credit Union Administration, Resolution Trust Corporation, Pension Benefit Guaranty Corporation, National Flood Insur-
65 Sec. 507 CONGRESSIONAL BUDGET ACT OF 1974 

ance, National Insurance Development Fund, Crop Insurance, or 

Tennessee Valley Authority. 

(b) STUDY.—The Director and the Director of the Congressional 

Budget Office shall each study whether the accounting for Federal 

deposit insurance programs should be on a cash basis on the same 

basis as loan guarantees, or on a different basis. Each Director 

shall report findings and recommendations to the President and 

the Congress on or before May 31, 1991. 

(c) ACCESS TO DATA.—For the purposes of subsection (b), the 

Office of Management and Budget and the Congressional Budget 

Office shall have access to all agency data that may facilitate these 

studies. 

SEC. 507. ø2 U.S.C. 661f¿ EFFECT ON OTHER LAWS. 

(a) EFFECT ON OTHER LAWS.—This title shall supersede, modify, or repeal any provision of law enacted prior to the date of enactment of this title to the extent such provision is inconsistent 

with this title. Nothing in this title shall be construed to establish 

a credit limitation on any Federal loan or loan guarantee program. 

(b) CREDITING OF COLLECTIONS.—Collections resulting from direct loans obligated or loan guarantees committed prior to October 

1, 1991, shall be credited to the liquidating accounts of Federal 

agencies. Amounts so credited shall be available, to the same extent that they were available prior to the date of enactment of this 

title, to liquidate obligations arising from such direct loans obligated or loan guarantees committed prior to October 1, 1991, including repayment of any obligations held by the Secretary of the 

Treasury or the Federal Financing Bank. The unobligated balances 

of such accounts that are in excess of current needs shall be transferred to the general fund of the Treasury. Such transfers shall be 

made from time to time but, at least once each year. 
Sec. 507 CONGRESSIONAL BUDGET ACT OF 1974 66 

29The Balanced Budget Act of 1997 (Public Law 105–33) repealed title VI of the Congressional 

Budget Act of 1974. That title provided for changes in Congressional budget procedures that 

were expected to last only for the duration of previous budget agreements. Title VI temporarily 

extended the coverage and enforcement of budget resolutions from three to five fiscal years. It 

also provided for adjustments in the budget resolution for such factors as emergencies, estimating differences, and tax compliance. 

Title VI—Amendments to Budget and 

Accounting Act of 1921 

[The Balanced Budget Act of 1997, sec. 10118(a) 29 (H.R. 2015 

(105th Congress); Public Law 105—33; 111 Stat. 695) repealed 

Title VI of the Congressional Act of 1974.] 
67 Sec. 703 CONGRESSIONAL BUDGET ACT OF 1974 

30This section was repealed by Public Law 97–258: That section read as follows: 

SEC. 702. (a) Section 204 of the Legislative Reorganization Act of 1970 [31 U.S.C. 1154] is 

amended to read as follows: 

‘‘REVIEW AND EVALUATION 

‘‘SEC. 204. (a) The Comptroller General shall review and evaluate the results of Government 

programs and activities carried on under existing law when ordered by either House of Congress 

or upon his own initiative, or when requested by any committee of the House of Representatives 

or the Senate, or any joint committee of the two Houses, having jurisdiction over such programs 

and activities. 

‘‘(b) The Comptroller General, upon request of any committee of either House of Congress or 

any joint committee of the two Houses shall— 

‘‘(1) assist such committee or joint committee in developing a statement of legislative objectives and goals and methods for assessing and reporting actual program performance in relation 

to such legislative objectives and goals. Such statements shall include, but are not limited to, 

recommendations as to methods of assessment, information to be reported, responsibility for reporting, frequency of reports, and feasibility of pilot testing; and 

‘‘(2) assist such committee or joint committee in analyzing in assessing program reviews or 

evaluation studies prepared by and for any Federal agency. 

‘‘Upon the request of any Member of either House, the Comptroller General shall furnish to 

such Member a copy of any such statement other material compiled in carrying out paragraph 

(1) or (2) which has been released by the committee or joint committee for which it was compiled. 

‘‘(c) The Comptroller General shall develop and recommend to the Congress methods for review and evaluation of Government programs and activities carried under existing laws. 

‘‘(d) In carrying out his responsibilities under this section the Comptroller General is authorized to establish an Office of Program Review and Evaluation within the General Accounting 

Office. 

‘‘(e) The Comptroller General shall include in his annual report to the Congress a review of 

activities under this section, including his recommendations of methods for review and evaluation of Government programs and activities under subsection (c).’’ 

Title VII—Program Review and Evaluation 

REVIEW AND EVALUATION OF STANDING COMMITTEES

SEC. 701. Section 136(a) of the Legislative Reorganization Act 

of 1946 (2 U.S.C 190d) is amended by adding at the end thereof 

the following new sentences: ‘‘Such committees may carry out the 

required analysis, appraisal, and evaluation themselves or by contract, or may require a Government agency to do so and furnish a 

report thereon to the Congress. Such committees may rely on such 

techniques as pilot testing, analysis of costs in comparison with 

benefits, or provisions for evaluation after a defined period of time. 

REVIEW AND EVALUATION BY THE COMPTROLLER GENERAL

SEC. 702.30

[This section was repealed by Public Law 97-258 and the repealed text is set out in the footnote below.] 

CONTINUING STUDY OF ADDITIONAL BUDGET REFORM PROPOSALS

SEC. 703. ø2 U.S.C. 623¿ (a) The Committees on the Budget of 

the House of Representatives and the Senate shall study on a continuing basis proposals designed to improve and facilitate methods 

of congressional budgetmaking. The proposals to be studied shall 

include, but are not limited to, proposals for— 

(1) improving the information base required for determining the effectiveness of new programs by such means as 

pilot testing, survey research, and other experimental and analytical techniques; 

(2) improving analytical and systematic evaluation of the 

effectiveness of existing programs; 
Sec. 703 CONGRESSIONAL BUDGET ACT OF 1974 68 

(3) establishing maximum and minimum time limitations 

for program authorization; and 

(4) developing techniques of human resource accounting 

and other means of providing noneconomic as well as economic 

evaluation measures. 

(b) The Committee on the Budget of each House shall, from 

time to time, report to its House the results of the study carried 

on by it under subsection (a), together with its recommendations. 

(c) Nothing in this section shall preclude studies to improve the 

budgetary process by any other committee of the House of Representatives or the Senate or any joint committee of the Congress. 
69 Sec. 801 CONGRESSIONAL BUDGET ACT OF 1974 

31Public Law 97-258, (Title: A bill to revise, codify, and enact without substantive change certain general and permanent laws, related to money and finance, as title 31, United States Code, 

‘‘Money and Finance’’; September 13, 1982), repealed section 801 and section 801 of Title VIII. 

Sections 801 and 802 were codified in sections 1104, 1112, and 1113 of title 31 of the United 

States Code. 

Title VIII—Fiscal and Budgetary 

Information and Controls 31

AMENDMENT TO LEGISLATIVE REORGANIZATION ACT OF 1970

SEC. 801. 

[This section was repealed by Public Law 97-258.] 

CHANGES IN FUNCTIONAL CATEGORIES

SEC. 802. 

[This section was repealed by Public Law 97-258.] 
Sec. 901 CONGRESSIONAL BUDGET ACT OF 1974 70 

32The Rules of the House of Representatives were recodified by H. Res. 5, adopted by the 

106th Congress on January 6, 1999. 33See the Standing Rules of the United States Senate. These rules have been modified since 

the enactment of this section. 

Title IX—Miscellaneous Provisions; 

Effective Dates 

AMENDMENTS TO THE RULES OF THE HOUSE32

SEC. 901. (a) Rule XI of the Rules of the House of Representatives (as amended by section 101(c) of this Act) is amended by inserting immediately after clause 22 the following new clause: 

‘‘22A. The respective areas of legislative jurisdiction under this 

rule are modified by title I of the Congressional Budget Act of 

1974.’’ 

(b) Paragraph (c) of clause 29 of Rule XI of the Rules of the 

House of Representatives (as redesignated by section 101(c) of this 

Act) is amended by inserting ‘‘the Committee on the Budget,’’ immediately after ‘‘the Committee on Appropriations,’’. 

(c) Subparagraph (5) of paragraph (a) of clause 30 of Rule XI 

of the Rules of the House of Representatives (as so redesignated) 

is amended by inserting ‘‘and the Committee on the Budget’’ immediately before the period of the end thereof. 

(d) Subparagraph (4) of paragraph (a) of clause 30 of Rule XI 

of the Rules of the House of Representatives (as so redesignated) 

is amended by inserting ‘‘and the Committee on the Budget’’ immediately before the period at end hereof. 

(e) Paragraph (d) of clause 30 of Rule XI of the Rules of the 

House of Representatives (as so redesignated) is amended by striking out ‘‘the Committee on Appropriations may appoint’’ and inserting in lieu thereof ‘‘the Committee on Appropriations and the Committee on the Budget may each appoint’’. 

(f) Clause 32 of Rule XI of the Rules of the House of Representatives (as so redesignated) is amended by inserting ‘‘the Committee 

on the Budget,’’ immediately after ‘‘the Committee on the Appropriations,’’. 

(g) Paragraph (a) of clause 33 of Rule XI of the Rules of the 

House of Representatives (as so redesignated) is amended by inserting ‘‘the Committee on the Budget,’’ immediately after ‘‘the 

Committee on the Appropriations,’’. 

CONFORMING AMENDMENTS TO STANDING RULES OF THE SENATE

SEC. 902.33 Paragraph 1 of rule XXV of the Standing Rules of 

the Senate is amended— 

(1) by striking out ‘‘Revenue’’ in subparagraph (h)1 and inserting in lieu thereof ‘‘Except as provided in the Congressional 

Budget Act of 1974, revenue’’; 

(2) by striking out ‘‘The’’ in subparagraph (h)(2) and inserting in lieu thereof ‘‘Except as provided in the Congressional 

Budget Act of 1974, the’’; and 

(3) by striking out ‘‘Budget’’ in subparagraph (j)(1)(A) and 

inserting in lieu thereof ‘‘Except as provided in the Congressional Budget Act of 1974, budget’’. 
71 Sec. 904 CONGRESSIONAL BUDGET ACT OF 1974 

34S. Res. 274, 96th Congress, 1st Session, Section 2(a), 125 Congressional Record, S16,588, 

S16,602 (daily edition, November 14, 1979), repealed 2 U.S.C. 190b. 35S. Res. 274, 96th Congress, 1st Session, Section 2(a), 125 Congressional Record, S16,588, 

S16,602 (November 14, 1979), repealed 2 U.S.C. 190d insofar as it related to the Senate. There 

exception for the Budget Committee that section 903(b) created to the requirement of all committees to submit biennial reports of their activities survives in Rule XXVI(8) of the Standing 

Rules of the Senate. 36So in law. Should read ‘‘258A(b)(3)(C)(i)’’. 37So in law. Should read ‘‘258B(h)(3)’’. 

AMENDMENTS TO LEGISLATIVE REORGANIZATION ACT OF 1946

SEC. 903. (a) Section 134(c) of the Legislative Reorganization 

Act of 1946 (2. U.S.C. 190b(b) 34 is amended by inserting ‘‘or the 

Committee on the Budget’’ after ‘‘Appropriations’’. 

(b) Section 136(c) of such Act (2 U.S.C. 190d(c) 35 is amended 

by striking out ‘‘Committee on Appropriations of the Senate and 

the Committee on Appropriations,’’ and inserting in lieu thereof 

‘‘Committee Appropriations and the Budget of the Senate and the 

Committees on Appropriations, the Budget,’’. 

EXERCISE OF RULEMAKING POWERS

SEC. 904. ø2 U.S.C. 621 note¿ (a) The provisions of this title 

and of titles I, III, IV, and V and the provisions of sections 701, 

703, and 1017 are enacted by the Congress— 

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

Representatives and the Senate, respectively, and as such they 

shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and 

such rules shall supersede other rules only to the extent that 

they are inconsistent therewith; and 

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

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

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

in the case of any other rule of such House. 

(b) Any provision of title III or IV may be waived or suspended 

in the Senate by a majority vote of the Members voting, a quorum 

being present, or by the unanimous consent of the Senate. 

(c) WAIVERS.— 

(1) PERMANENT.—Sections 305(b)(2), 305(c)(4), 306, 

310(d)(2), 313, 904(c), and 904(d) of this Act may be waived or 

suspended in the Senate only by the affirmative vote of threefifths of the Members, duly chosen and sworn. 

(2) TEMPORARY.—Sections 301(i), 302(c), 302(f), 310(g), 

311(a), 312(b), 312(c), and 314(e) of this Act and sections 

258(a)(4)(C), 258A(b)(3)(C)(I) 36, 258B(f)(1), 258B(h)(1), 

258(h)(3) 37, 258C(a)(5), and 258C(b)(1) of the Balanced Budget 

and Emergency Deficit Control Act of 1985 may be waived or 

suspended in the Senate only by the affirmative vote of threefifths of the Members, duly chosen and sworn. 

(d) APPEALS.— (1) PROCEDURE.—Appeals in the Senate from the decisions 

of the Chair relating to any provision of title III or IV or section 1017 shall, except as otherwise provided therein, be limited to 1 hour, to be equally divided between, and controlled 

by, the mover and the manager of the resolution, concurrent 
Sec. 905 CONGRESSIONAL BUDGET ACT OF 1974 72 

38Sect. 205 of S. Con. Res. 21 (109th Congress) extended the three-fifths vote enforcement requirements until September 30, 2017. 39The Balanced Budget Act of 1997 (105th Congress) repealed this section of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93–344). 

resolution, reconciliation bill, or rescission bill, as the case may 

be. 

(2) PERMANENT.—An affirmative vote of three-fifths of the 

Members, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point 

of order raised under sections 305(b)(2), 305(c)(4), 306, 

310(d)(2), 313, 904(c), and 904(d) of this Act. 

(3) TEMPORARY.—An affirmative vote of three-fifths of the 

Members, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point 

of order raised under sections 301(i), 302(c), 302(f), 310(g), 

311(a), 312(b), and 312(c) of this Act and sections 258(a)(4)(C), 

258A(b)(3)(C)(I), 258B(f)(1), 258B(h)(1), 258(h)(3), 258C(a)(5), 

and 258C(b)(1) of the Balanced Budget and Emergency Deficit 

Control Act of 1985. 

(e) EXPIRATION OF CERTAIN SUPERMAJORITY VOTING REQUIREMENTS.—Subsections (c)(2) and (d)(3) shall expire on September 30, 

2007.38

EFFECTIVE DATES39

SEC. 905. (a) Except as provided in this section, the provisions 

of this Act shall take effect on the date of its enactment. 

(b) Title II (except section 201(a), section 403, and section 

502(c) shall take effect on the day on which the first Director of the 

Congressional Budget Office is appointed under 201(a). 

(c) Except as provided in section 906, title III and section 402 

shall apply with respect to the fiscal year beginning on October 1, 

1976, and succeeding fiscal years, and section 401 shall take effect 

on the first day of the second regular session of the Ninety-fourth 

Congress. 

(d) The amendments to the Budget and Accounting Act, 1921, 

made by sections 601, 603, and 604 shall apply with respect to the 

fiscal year beginning on July 1, 1975, and succeeding fiscal years, 

except that section 201(g) of such Act (as added by section 601) 

shall apply with respect to the fiscal year beginning on October 1, 

1976, and succeeding fiscal years and section 201(i) of such Act (as 

added by section 601) shall apply with respect to the fiscal year beginning on October 1, 1978, and succeeding years. The amendment 

to such Act made by section 602 shall apply with respect to the fiscal year beginning on October 1, 1976, and succeeding fiscal years. 
73 Sec. 1011 IMPOUNDMENT CONTROL ACT OF 1974 

40This section was deleted by Public Law 97-258, (Title: A bill to revise, codify, and enact 

without substantive change certain general and permanent laws, related to money and finance, 

as title 31, United States Code, ‘‘Money and Finance’’; September 13, 1982). This section was 

codified in section 1512 of Title 31 of the United States Code. 41This section was deleted by Public Law 97-258, (Title: A bill to revise, codify, and enact 

without substantive change certain general and permanent laws, related to money and finance, 

as title 31, United States Code, ‘‘Money and Finance’’; September 13, 1982). This section was 

codified in section 1512 of Title 31 of the United States Code. 

Title X—Impoundment Control 

PART A—GENERAL PROVISIONS

DISCLAIMER

SEC. 1001. ø2 U.S.C. 681¿ Nothing contained in this Act, or in 

any amendments made by this Act, shall be construed as— 

(1) asserting or conceding the constitutional powers or limitations of either the Congress or the President; 

(2) ratifying or approving any impoundment heretofore or 

hereafter executed or approved by the President or any other 

Federal officer or employee, except insofar as pursuant to statutory authorization then in effect; 

(3) affecting in any way the claims or defenses of any party 

to litigation concerning any impoundment; or 

(4) superseding any provision of law which requires the obligation of budget authority or the making of outlays thereunder. 

AMENDMENT TO ANTIDEFICIENCY ACT

SEC. 1002.40

[Repealed by Public Law 97-258.] 

REPEAL OF EXISTING IMPOUNDMENT REPORTING PROVISION

SEC. 1003.41

[Repealed by Public Law 97-258.] 

PART B—CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS, RESERVATIONS, AND DEFERRALS OF BUDGET AUTHORITY

DEFINITIONS

SEC. 1011. ø2 U.S.C. 682¿ For purposes of this part— 

(1) ‘‘deferral of budget authority’’ includes— 

(A) withholding or delaying the obligations or expenditure of budget authority (whether by establishing reserves 

or otherwise) provided for projects or activities; or 

(B) any other type of Executive action or inaction 

which effectively precludes the obligation or expenditure of 

budget authority, including authority to obligate by contract in advance of appropriations as specifically authorized by law; 

(2) ‘‘Comptroller General’’ means the Comptroller General 

of the United States; 
Sec. 1012 IMPOUNDMENT CONTROL ACT OF 1974 74 

(3) ‘‘rescission bill’’ means a bill or joint resolution which 

only recinds in whole or in part, budget authority proposed to 

be rescinded in a special message transmitted by the President 

under section 1012, and upon which the Congress completes 

action before the end of the first period of 45 calendar days of 

continuous session of the Congress after the date on which the 

President’s message is received by the Congress; 

(4) ‘‘impoundment resolution’’ means a resolution of the 

House of Representatives or the Senate which only expresses 

its disapproval of a proposed deferral of budget authority set 

forth in a special message transmitted by the President under 

section 1013; and 

(5) continuity of a session of the Congress shall be considered as broken only by an adjournment of the Congress sine 

die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain 

shall be excluded in the computation of the 45-day period referred to in paragraph (3) of this section and in section 1012, 

and the 25-day periods referred to in sections 1016 and 

1017(b)(1). If a special message is transmitted under section 

1012 during any Congress and the last session of such Congress adjourns sine die before the expiration of 45 calendar 

days of continuous session (or a special message is so transmitted after the last session of the Congress adjourns sine die), 

the message shall be deemed to have been retransmitted on 

the first day of the succeeding Congress and the 45-day period 

referred to in paragraph (3) of this section and section 1012 

(with respect to such message) shall commence on the day 

after such first day. 

RESCISSION OF BUDGET AUTHORITY

SEC. 1012. ø2 U.S.C. 683¿ (a) TRANSMITTAL OF SPECIAL MES- SAGE.—Whenever the President determines that all or part of any 

budget authority will not be required to carry out the full objectives 

or scope of programs for which it is provided or that such budget 

authority should be rescinded for fiscal policy or other reasons (including the determination of authorized projects or activities for 

which budget authority has been provided), or whenever all or part 

of budget authority provided for only one fiscal year is to be reserved from obligation for such fiscal year, the President shall 

transmit to both Houses of Congress a special message specifying— 

(1) the amount of budget authority which he proposes to 

be rescinded or which is to be so reserved; 

(2) any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific project or governmental functions involved; 

(3) the reasons why the budget authority should be rescinded or is to be so reserved; 

(4) to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed rescission 

or of the reservation; and 

(5) all facts, circumstances, and considerations relating to 

or bearing upon the proposed rescission or the reservation and 
75 Sec. 1013 IMPOUNDMENT CONTROL ACT OF 1974 

the decision to effect the proposed rescission or the reservation, 

and to the maximum extent practicable, the estimated effect of 

the proposed rescission or the reservation upon the objects, 

purposes, and programs for which the budget authority is provided. 

(b) REQUIREMENT TO MAKE AVAILABLE FOR OBLIGATION.—Any 

amount of budget authority proposed to be rescinded or that is to 

be reserved as set forth in such special message shall be made 

available for obligation unless, within the prescribed 45-day period, 

the Congress has completed action on a rescission bill rescinding 

all or part of the amount proposed to be rescinded or that is to be 

reserved. Funds made available for obligation under this procedure 

may not be proposed for rescission again. 

PROPOSED DEFERRALS OF BUDGET AUTHORITY

SEC. 1013. ø2 U.S.C. 684¿ (a) TRANSMITTAL OF SPECIAL MES- SAGE.—Whenever the President, the Director of the Office of Management and Budget, the head of any department or agency of the 

United States, or any officer or employee of the United States proposes to defer any budget authority provided for a specific purpose 

or project, the President shall transmit to the House of Representatives and the Senate a special message specifying— 

(1) the amount of the budget authority proposed to be deferred; 

(2) any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific project or governmental functions involved; 

(3) the period of time during which the budget authority 

is proposed to be deferred; 

(4) the reasons for the proposed deferral, including any 

legal authority invoked to justify the proposed deferral; 

(5) to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed deferral; 

and 

(6) all facts, circumstances, and considerations relating to 

or bearing upon the proposed deferral and the decision to effect 

the proposed deferral, including an analysis of such facts, circumstances, and considerations in terms of their application to 

any legal authority, including specific elements of legal authority, invoked to justify such proposed deferral, and to the maximum extent practicable, the estimated effect of the proposed 

deferral upon the objects, purposes, and programs for which 

the budget authority is provided. 

A special message may include one or more proposed deferrals of 

budget authority. A deferral may not be proposed for any period of 

time extending beyond the end of the fiscal year in which the special message proposing the deferral is transmitted to the House 

and the Senate. 

(b) CONSISTENCY WITH LEGISLATIVE POLICY.—Deferrals shall 

be permissible only— 

(1) to provide for contingencies; 

(2) to achieve savings made possible by or through changes 

in requirements or greater efficiency of operations; or 
Sec. 1014 IMPOUNDMENT CONTROL ACT OF 1974 76 

(3) as specifically provided by law. 

No officer or employee of the United States may defer any budget 

authority for any other purpose. 

(c) EXCEPTION.—The provisions of this section do not apply to 

any budget authority proposed to be rescinded or that is to be reserved as set forth in a special message required to be transmitted 

under section 1012. 

TRANSMISSION OF MESSAGES; PUBLICATION

SEC. 1014. ø2 U.S.C. 685¿ (a) DELIVERY TO HOUSE AND SEN- ATE.—Each special message transmitted under section 1012 or 

1013 shall be transmitted to the House of Representatives and the 

Senate on the same day, and shall be delivered to the Clerk of the 

House of Representatives if the House is not in session, and to the 

Secretary of the Senate if the Senate is not in session. Each special 

message so transmitted shall be referred to the appropriate committee of the House of Representatives and the Senate. Each such 

message shall be printed as a document of each House. 

(b) DELIVERY TO COMPTROLLER GENERAL.—A copy of each special message transmitted under section 1012 or 1013 shall be 

transmitted to the Comptroller General on the same day it is transmitted to the House of Representatives and the Senate. In order to 

assist the Congress in the exercise of its functions under sections 

1012 and 1013, the Comptroller General shall review each such 

message and inform the House of Representatives and the Senate 

as promptly as practicable with respect to— 

(1) in the case of a special message transmitted under section 1012, the facts surrounding the proposed rescission or the 

reservation of budget authority (including the probable effects 

thereof); and 

(2) in the case of a special message transmitted under section 1013, (A) the facts surrounding each proposed deferral of 

budget authority (including the probable effects thereof) and 

(B) whether or not (or to what extent), in his judgment, such 

proposed deferral is in accordance with existing statutory authority. 

(c) TRANSMISSION OF SUPPLEMENTARY MESSAGES.—If any information contained in a special message transmitted under section 

1012 or 1013 is subsequently revised, the President shall transmit 

to both Houses of Congress and the Comptroller General a supplementary message stating and explaining such revision. Any such 

supplementary message shall be delivered, referred, and printed as 

provided in subsection (a). The Comptroller General shall promptly 

notify the House of Representatives and the Senate of any change 

in the information submitted by him under subsection (b) which 

may be necessitated by such revision. 

(d) PRINTING IN FEDERAL REGISTER.—Any special message 

transmitted under section 1012 or 1013, and any supplementary 

message transmitted under subsection (c), shall be printed in the 

first issue of the Federal Register published after such transmittal. 

(e) CUMULATIVE REPORTS OF PROPOSED RESCISSIONS, RESERVA- TIONS, AND DEFERRALS OF BUDGET AUTHORITY.— (1) The President shall submit a report to the House of 

Representatives and the Senate, not later than the 10th day of 
77 Sec. 1016 IMPOUNDMENT CONTROL ACT OF 1974 

each month during a fiscal year, listing all budget authority for 

that fiscal year with respect to which, as of the first day of 

such month— 

(A) he has transmitted a special message under section 1012 with respect to a proposed rescission or a reservation; and 

(B) he has transmitted a special message under section 1013 proposing a deferral. 

Such report shall also contain, with respect to each such proposed rescission or deferral, or each such reservation, the information required to be submitted in the special message with 

respect thereto under section 1012 or 1013. 

(2) Each report submitted under paragraph (1) shall be 

printed in the first issue of the Federal Register published 

after its submission. 

REPORTS BY COMPTROLLER GENERAL

SEC. 1015. ø2 U.S.C. 686¿ (a) FAILURE TO TRANSMIT SPECIAL

MESSAGE.—If the Comptroller General finds that the President, the 

Director of the Office of Management and Budget, the head of any 

department or agency of the United States, or any other officer or 

employee of the United States— 

(1) is to establish a reserve or proposes to defer budget authority with respect to which the President is required to 

transmit a special message under section 1012 or 1013; or 

(2) has ordered, permitted, or approved the establishment 

of such a reserve or a deferral of budget authority; 

and that the President has failed to transmit a special message 

with respect to such reserve or deferral, the Comptroller General 

shall make a report on such reserve or deferral and any available 

information concerning it to both Houses of Congress. The provisions of this part shall apply with respect to such reserve or deferral in the same manner and with the same effect as if such report 

of the Comptroller General were a special message transmitted by 

the President under section 1012 or 1013, and, for purposes of this 

part, such report shall be considered a special message transmitted 

under section 1012 or 1013. 

(b) INCORRECT CLASSIFICATION OF SPECIAL MESSAGE.—If the 

President has transmitted a special message to both Houses of 

Congress in accordance with section 1012 or 1013, and the Comptroller General believes that the President so transmitted the special message in accordance with one of those sections when the special message should have been transmitted in accordance with the 

other of those sections, the Comptroller General shall make a report to both Houses of the Congress setting forth his reasons. 

SUITS BY COMPTROLLER GENERAL

SEC. 1016. ø2 U.S.C. 687¿ If, under this title, budget authority 

is required to be made available for obligation and such budget authority is not made available for obligation, the Comptroller General is hereby expressly empowered, through attorneys of his own 

selection, to bring a civil action in the United States District Court 

for the District of Columbia to require such budget authority to be 
Sec. 1017 IMPOUNDMENT CONTROL ACT OF 1974 78 

made available for obligation, and such court is hereby expressly 

empowered to enter in such civil action, against any department, 

agency, officer, or employee of the United States, any decree, judgment, or order, which may be necessary or appropriate to make 

such budget authority available for obligation. No civil action shall 

be brought by the Comptroller General under this section until the 

expiration of 25 calendar days of continuous session of the Congress following the date on which an explanatory statement by the 

Comptroller General of the circumstances giving rise to the action 

contemplated has been filed with the Speaker of the House of Representatives and the President of the Senate. 

PROCEDURE IN HOUSE AND SENATE

SEC. 1017. ø2 U.S.C. 688¿ (a) REFERRAL.—Any rescission bill 

introduced with respect to a special message or impoundment resolution introduced with respect to a proposed deferral of budget authority shall be referred to the appropriate committee of the House 

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

(b) DISCHARGE OF COMMITTEE.— 

(1) If the committee to which a rescission bill or impoundment resolution has been referred has not reported it at the 

end of 25 calendar days of continuous session of the Congress 

after its introduction, it is in order to move either to discharge 

the committee from further consideration of the bill or resolution or to discharge the committee from further consideration 

of any other rescission bill with respect to the same special 

message or impoundment resolution with respect to the same 

proposed deferral, as the case may be, which has been referred 

to the committee. 

(2) A motion to discharge may be made only by an individual favoring the bill or resolution, may be made only if supported by one-fifth of the Members of the House involved (a 

quorum being present), and is highly privileged in the House 

and privileged in the Senate (except that it may not be made 

after the committee has reported a bill or resolution with respect to the same special message or the same proposed deferral, as the case may be); and debate thereon shall be limited 

to not more than 1 hour, the time to be divided in the House 

equally between those favoring and those opposing the bill or 

resolution, and to be divided in the Senate equally between, 

and controlled by, the majority leader and the minority leader 

or their designees. An amendment to the motion is not in 

order, and it is not in order to move to reconsider the vote by 

which the motion is agreed to or disagreed to. 

(c) FLOOR CONSIDERATION IN THE HOUSE.— 

(1) When the committee of the House of Representatives 

has reported, or has been discharged from further consideration of a rescission bill or impoundment resolution, it shall at 

any time thereafter be in order (even though a previous motion 

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

to the consideration of the bill or resolution. The motion shall 

be highly privileged and not debatable. An amendment to the 

motion shall not be in order, nor shall it be in order to move 
79 Sec. 1017 IMPOUNDMENT CONTROL ACT OF 1974 

to reconsider the vote by which the motion is agreed to or disagreed to. 

(2) Debate on a rescission bill or impoundment resolution 

shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the 

bill or resolution. A motion further to limit debate shall not be 

debatable. In the case of an impoundment resolution, no 

amendment to, or motion to recommit, the resolution shall be 

in order. It shall not be in order to move to reconsider the vote 

by which a rescission bill or impoundment resolution is agreed 

to or disagreed to. 

(3) Motions to postpone, made with respect to the consideration of a rescission bill or impoundment resolution, and motions to proceed to the consideration of other business, shall be 

decided without debate. 

(4) All appeals from the decisions of the Chair relating to 

the application of the Rules of the House of Representatives to 

the procedure relating to any rescission bill or impoundment 

resolution shall be decided without debate. 

(5) Except to the extent specifically provided in the preceding provisions of this subsection, consideration of any rescission bill or impoundment resolution and amendments 

thereto (or any conference report thereon) shall be governed by 

the Rules of the House of Representatives applicable to other 

bills and resolutions, amendments, and conference reports in 

similar circumstances. 

(d) FLOOR CONSIDERATION IN THE SENATE.— 

(1) Debate in the Senate on any rescission bill or impoundment resolution, and all amendments thereto (in the case of a 

rescission bill) and debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours. The 

time shall be equally divided between, and controlled by, the 

majority leader and the minority leader or their designees. 

(2) Debate in the Senate on any amendment to a rescission 

bill shall be limited to 2 hours, to be equally divided between, 

and controlled by, the mover and the manager of the bill. Debate on any amendment to an amendment, to such a bill, and 

debate on any debatable motion or appeal in connection with 

such a bill or an impoundment resolution shall be limited to 

1 hour, to be equally divided between, and controlled by, the 

mover and the manager of the bill or resolution, except that in 

the event the manager of the bill or resolution is in favor in 

any such amendment, motion, or appeal, the time in opposition 

thereto, shall be controlled by the minority leader or his designee. No amendment that is not germane to the provisions of 

a rescission bill shall be received. Such leaders, or either of 

them, may, from the time under their control on the passage 

of a rescission bill or impoundment resolution, allot additional 

time to any Senator during the consideration of any amendment, debatable motion, or appeal. 

(3) A motion to further limit debate is not debatable. In 

the case of a rescission bill, a motion to recommit (except a motion to recommit with instructions to report back within a specified number of days, not to exceed 3, not counting any day on 
Sec. 1017 IMPOUNDMENT CONTROL ACT OF 1974 80 

which the Senate is not in session) is not in order. Debate on 

any such motion to recommit shall be limited to one hour, to 

be equally divided between, and controlled by, the mover and 

the manager of the concurrent resolution. In the case of an impoundment resolution, no amendment or motion to recommit is 

in order. 

(4) The conference report on any rescission bill shall be in 

order in the Senate at any time after the third day (excluding 

Saturdays, Sundays, and legal holidays) following the day on 

which such a conference report is reported and is available to 

Members of the Senate. A motion to proceed to the consideration of the conference report may be made even though a previous motion to the same effect has been disagreed to. 

(5) During the consideration in the Senate of the conference report on any rescission bill, debate shall be limited to 

2 hours, to be equally divided between, and controlled by, the 

majority leader and minority leader or their designees. Debate 

on any debatable motion or appeal related to the conference report shall be limited to 30 minutes, to be equally divided between, and controlled by, the mover and the manager of the 

conference report. 

(6) Should the conference report be defeated, debate on 

any request for a new conference and the appointment of conferees shall be limited to one hour, to be equally divided, between, and controlled by, the manager of the conference report 

and the minority leader or his designee, and should any motion 

be made to instruct the conferees before the conferees are 

named, debate on such motion shall be limited to 30 minutes, 

to be equally divided between, and controlled by, the mover 

and the manager of the conference report. Debate on any 

amendment to any such instructions shall be limited to 20 

minutes, to be equally divided between, and controlled by the 

mover and the manager of the conference report. In all cases 

when the manager of the conference report is in favor of any 

motion, appeal, or amendment, the time in opposition shall be 

under the control of the minority leader or his designee. 

(7) In any case in which there are amendments in disagreement, time on each amendment shall be limited to 30 

minutes, to be equally divided between, and controlled by, the 

manager of the conference report and the minority leader or 

his designee. No amendment that is not germane to the provisions of such amendments shall be received. 
81 

BALANCED BUDGET AND EMERGENCY DEFICIT 

CONTROL ACT OF 1985 

83 

42 Application of certain provisions to Statutory PAYGO. For purposes of the ‘‘Statutory PayAs-You-Go Act of 2010’’ (title I of Public Law 111–139; enacted February 12, 2010; 124 Stat. 

8), the provisions of sections 255, 256, 257, and 274 of Balanced Budget and Emergency Deficit 

Continued 

Balanced Budget and Emergency 

Deficit Control Act of 1985 

Public Law 99–177, December 12, 1985, 99 Stat. 1037 

Major Amendments: 

Balanced Budget and Emergency Deficit Reaffirmation Act of 1987; 

Public Law 100–119, Title I, September 28, 1987; 101 Stat. 

754. 

Budget Enforcement Act of 1990; Public Law 101–508, Title XIV, 

Subtitle A, Part I; November 5, 1990; 104 Stat. 1388– 

573,1388–574. 

Omnibus Budget Reconciliation Act of 1993; Public Law 103–66, 

Title XIV; August 10, 1993; 107 Stat. 312, 683. 

Violent Crime Control and Law Enforcement Act of 1994; Public 

Law 103–322, Title XXXI; September 13, 1994; 108 Stat. 1796, 

2102. 

The Balanced Budget Act of 1997; Public Law 105–33, August 5, 

1997; 111 Stat. 251. 

Transportation Equity Act for the 21st Century; June 9, 1998; 112 

Stat. 488. 

TEA 21 Restoration Act; Public Law 105–206; July 22, 1998; 115 

Stat. 865. 

Statutory Pay-As-You-Go-Act of 2010; Public Law 111–139; February 12, 2010; 124 Stat. 8. 

Budget Control Act of 2011; Public Law 112–25; August 2, 2011; 

125 Stat. 240. 

[As Amended Through Public Law 112–25, 

Enacted August 2, 2011] 

PART C—EMERGENCY POWERS TO ELIMINATE 

DEFICITS IN EXCESS OF MAXIMUM DEFICIT AMOUNT 42

SEC. 250. ø2 U.S.C. 900¿ TABLE OF CONTENTS; STATEMENT OF BUDGET 

ENFORCEMENT THROUGH SEQUESTRATION; DEFINITIONS. 

(a) TABLE OF CONTENTS.— 
Sec. 250 DEFICIT CONTROL ACT OF 1985 84 

Control Act of 1985 (BBEDCA) (as amended by such Public Law) also apply to the provisions 

of Title I of that Act. See section 8 of Public Law 111–139 relating to the application of 

BBEDCA.’’ 43 House Concurrent Resolution 84 provided for the conference report on the Concurrent Budget Resolution on the Budget for Fiscal Year 1998 which provided for the Bipartisan Budget 

Agreement announced by President Clinton and the Bipartisan Congressional Leadership on 

May 2 and finalized on May 15, 1997. That resolution provided for reconciliation instructions 

which resulted in the enactment of the Balanced Budget Act of 1997. 

Sec. 250. Table of contents; budget enforcement statement; definitions. 

Sec. 251. Enforcing discretionary spending limits. 

Sec. 251A. Enforcement of budget goal. 

Sec. 252. Enforcing pay-as-you-go. 

Sec. 253. Enforcing deficit targets. 

Sec. 254. Reports and orders. 

Sec. 255. Exempt programs and activities. 

Sec. 256. General and special sequestration rules. 

Sec. 257. The baseline. 

Sec. 258. Suspension in the event of war or low growth. 

Sec. 258A. Modification of presidential order. 

Sec. 258B. Alternative defense sequestration. 

Sec. 258C. Special reconciliation process. 

(b) GENERAL STATEMENT OF BUDGET ENFORCEMENT THROUGH

SEQUESTRATION.—This part provides for budget enforcement as 

called for in House Concurrent Resolution 84 43 (105th Congress, 

1st session). 

(c) DEFINITIONS.— 

As used in this part: 

(1) The terms ‘‘budget authority’’, ‘‘new budget authority’’, 

‘‘outlays’’, and ‘‘deficit’’ have the meanings given to such terms 

in section 3 of the Congressional Budget and Impoundment 

Control Act of 1974 and ‘‘discretionary spending limit’’ shall 

mean the amounts specified in section 251 of this Act. 

(2) The terms ‘‘sequester’’ and ‘‘sequestration’’ refer to or 

mean the cancellation of budgetary resources provided by discretionary appropriations or direct spending law. 

(3) The term ‘‘breach’’ means, for any fiscal year, the 

amount (if any) by which new budget authority or outlays for 

that year (within a category of discretionary appropriations) is 

above that category’s discretionary spending limit for new 

budget authority or outlays for that year, as the case may be. 

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

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

appropriations associated with agency budgets for the Department of Defense, the Department of Homeland Security, the Department of Veterans Affairs, the National Nuclear Security Administration, the intelligence community 

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

accounts in budget function 150 (international affairs). 

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

(5) The term ‘‘baseline’’ means the projection (described in 

section 257) of current-year levels of new budget authority, 

outlays, receipts, and the surplus or deficit into the budget 

year and the outyears. 
85 Sec. 250 DEFICIT CONTROL ACT OF 1985 

(6) The term ‘‘budgetary resources’’ means new budget authority, unobligated balances, direct spending authority, and 

obligation limitations. 

(7) The term ‘‘discretionary appropriations’’ means budgetary resources (except to fund direct-spending programs) provided in appropriation Acts. 

(8) The term ‘‘direct spending’’ means— 

(A) budget authority provided by law other than appropriation Acts; 

(B) entitlement authority; and 

(C) the Supplemental Nutrition Assistance Program. 

(9) The term ‘‘current’’ means, with respect to OMB estimates included with a budget submission under section 1105(a) 

of title 31, United States Code, the estimates consistent with 

the economic and technical assumptions underlying that budget and with respect to estimates made after that budget submission that are not included with it, estimates consistent with 

the economic and technical assumptions underlying the most 

recently submitted President’s budget. 

(10) The term ‘‘real economic growth’’, with respect to any 

fiscal year, means the growth in the gross national product 

during such fiscal year, adjusted for inflation, consistent with 

Department of Commerce definitions. 

(11) The term ‘‘account’’ means an item for which appropriations are made in any appropriation Act and, for items not 

provided for in appropriation Acts, such term means an item 

for which there is a designated budget account identification 

code number in the President’s budget. 

(12) The term ‘‘budget year’’ means, with respect to a session of Congress, the fiscal year of the Government that starts 

on October 1 of the calendar year in which that session begins. 

(13) The term ‘‘current year’’ means, with respect to a 

budget year, the fiscal year that immediately precedes that 

budget year. 

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

years after the budget year. 

(15) The term ‘‘OMB’’ means the Director of the Office of 

Management and Budget. 

(16) The term ‘‘CBO’’ means the Director of the Congressional Budget Office. 

(17) As used in this part, all references to entitlement authority shall include the list of mandatory appropriations included in the joint explanatory statement of managers accompanying the conference report on the Balanced Budget Act of 

1997. 

(18) The term ‘‘deposit insurance’’ refers to the expenses of 

the Federal deposit insurance agencies, and other Federal 

agencies supervising insured depository institutions, resulting 

from full funding of, and continuation of, the deposit insurance 

guarantee commitment in effect under current estimates. 

(19) The term ‘‘asset sale’’ means the sale to the public of 

any asset (except for those assets covered by title V of the Congressional Budget Act of 1974), whether physical or financial, 

owned in whole or in part by the United States. 
Sec. 251 DEFICIT CONTROL ACT OF 1985 86 

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

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

budget authority and the outlays flowing therefrom) for 

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

or property, or a threat to national security; and 

(B) is unanticipated. 

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

situation is— 

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

not building up over time; 

(B) urgent, which means a pressing and compelling 

need requiring immediate action; 

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

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

SEC. 251. ø2 U.S.C. 901¿ ENFORCING DISCRETIONARY SPENDING LIMITS. 

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

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

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

within a category shall be reduced by a dollar amount calculated by multiplying the enacted level of sequestrable budgetary resources in that account at that time by the uniform 

percentage necessary to eliminate a breach within that category. 

(3) MILITARY PERSONNEL.—If the President uses the authority to exempt any personnel account from sequestration 

under section 255(f), each account within subfunctional category 051 (other than those military personnel accounts for 

which the authority provided under section 255(f) has been exercised) shall be further reduced by a dollar amount calculated 

by multiplying the enacted level of non-exempt budgetary resources in that account at that time by the uniform percentage 

necessary to offset the total dollar amount by which outlays 

are not reduced in military personnel accounts by reason of the 

use of such authority. 

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

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

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

then the dollar sequestration calculated for that account under 

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

(A) the annualized amount otherwise available by law 

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

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

enacted, from the amount otherwise provided by the fullyear appropriation for that account. 

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

fiscal year in progress is enacted that causes a breach within 

a category for that year (after taking into account any sequestration of amounts within that category), the discretionary 
87 Sec. 251 DEFICIT CONTROL ACT OF 1985 

spending limits for that category for the next fiscal year shall 

be reduced by the amount or amounts of that breach. 

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

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

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

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

year (after taking into account any prior sequestration of 

amounts within that category), 15 days later there shall be a 

sequestration to eliminate that breach within that category following the procedures set forth in paragraphs (2) through (4). 

(7) ESTIMATES.— 

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

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

Budget of the House of Representatives and the Senate, 

shall provide OMB with an estimate of the amount of discretionary new budget authority and outlays for the current year, if any, and the budget year provided by that legislation. 

(B) OMB ESTIMATES AND EXPLANATION OF DIFFERENCES.—Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any discretionary appropriation, OMB shall 

transmit a report to the House of Representatives and to 

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

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

and the budget year provided by that legislation, and an 

explanation of any difference between the 2 estimates. If 

during the preparation of the report OMB determines that 

there is a significant difference between OMB and CBO, 

OMB shall consult with the Committees on the Budget of 

the House of Representatives and the Senate regarding 

that difference and that consultation shall include, to the 

extent practicable, written communication to those committees that affords such committees the opportunity to 

comment before the issuance of the report. 

(C) ASSUMPTIONS AND GUIDELINES.—OMB estimates 

under this paragraph shall be made using current economic and technical assumptions. OMB shall use the OMB 

estimates transmitted to the Congress under this paragraph. OMB and CBO shall prepare estimates under this 

paragraph in conformance with scorekeeping guidelines 

determined after consultation among the Committees on 

the Budget of the House of Representatives and the Senate, CBO, and OMB. 

(D) ANNUAL APPROPRIATIONS.—For purposes of this 

paragraph, amounts provided by annual appropriations 

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

which funding is provided in that legislation that result 

from previously enacted legislation. 

(b) ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.— 
Sec. 251 DEFICIT CONTROL ACT OF 1985 88 

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

Code, OMB shall calculate and the budget shall include adjustments to discretionary spending limits (and those limits as cumulatively adjusted) for the budget year and each outyear to 

reflect changes in concepts and definitions. Such changes shall 

equal the baseline levels of new budget authority and outlays 

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

using the concepts and definitions in effect before such 

changes. Such changes may only be made after consultation 

with the Committees on Appropriations and the Budget of the 

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

that affords such committees the opportunity to comment before official action is taken with respect to such changes. 

(2) SEQUESTRATION REPORTS.—When OMB submits a sequestration report under section 254(e), (f), or (g) for a fiscal 

year, OMB shall calculate, and the sequestration report and 

subsequent budgets submitted by the President under section 

1105(a) of title 31, United States Code, shall include adjustments to discretionary spending limits (and those limits as adjusted) for the fiscal year and each succeeding year, as follows: 

(A) EMERGENCY APPROPRIATIONS; OVERSEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM.—If, for any 

fiscal year, appropriations for discretionary accounts are 

enacted that— 

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

the President subsequently so designates, or 

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

on an account by account basis and the President subsequently so designates, 

the adjustment shall be the total of such appropriations in 

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

on Terrorism, as applicable. 

(B) CONTINUING DISABILITY REVIEWS AND REDETERMINATIONS.— 

(i) If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an 

amount for continuing disability reviews under titles 

II and XVI of the Social Security Act and for the cost 

associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, then 

the adjustments for that fiscal year shall be the additional new budget authority provided in that Act for 

such expenses for that fiscal year, but shall not exceed— 

(I) for fiscal year 2012, $623,000,000 in additional new budget authority; 

(II) for fiscal year 2013, $751,000,000 in additional new budget authority; 
89 Sec. 251 DEFICIT CONTROL ACT OF 1985 

6 (III) for fiscal year 2014, $924,000,000 in additional new budget authority; (IV) for fiscal year 2015, $1,123,000,000 in additional new budget authority; (V) for fiscal year 2016, $1,166,000,000 in additional new budget authority; (VI) for fiscal year 2017, $1,309,000,000 in additional new budget authority; (VII) for fiscal year 2018, $1,309,000,000 in 

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

additional new budget authority; (IX) for fiscal year 2020, $1,309,000,000 in additional new budget authority; and (X) for fiscal year 2021, $1,309,000,000 in additional new budget authority. 

(ii) As used in this subparagraph— 

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

means continuing disability reviews under sections 221(i) and 1614(a)(4) of the Social Security 

Act; 

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

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

(III) the term ‘‘additional new budget authority’’ means the amount provided for a fiscal year, 

in excess of $273,000,000, in an appropriation Act 

and specified to pay for the costs of continuing disability reviews and redeterminations under the 

heading ‘‘Limitation on Administrative Expenses’’ 

for the Social Security Administration. 

(C) HEALTH CARE FRAUD AND ABUSE CONTROL.— 

(i) If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an 

amount for the health care fraud abuse control program at the Department of Health and Human Services (75–8393–0–7–571), then the adjustments for that 

fiscal year shall be the amount of additional new 

budget authority provided in that Act for such program for that fiscal year, but shall not exceed— 

(I) for fiscal year 2012, $270,000,000 in additional new budget authority; 

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

(III) for fiscal year 2014, $329,000,000 in additional new budget authority; 

(IV) for fiscal year 2015, $361,000,000 in additional new budget authority; 

(V) for fiscal year 2016, $395,000,000 in additional new budget authority; 

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

(VII) for fiscal year 2018, $434,000,000 in additional new budget authority; 
Sec. 251 DEFICIT CONTROL ACT OF 1985 90 

44Major disaster.—‘‘Major disaster’’ means any natural catastrophe (including any hurricane, 

tornado, storm, high water, winddriven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the United States, which in the determination of the President causes 

damage of sufficient severity and magnitude to warrant major disaster assistance under this 

chapter to supplement the efforts and available resources of States, local governments, and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby. 45On January 15, 2012, the levels set in section 251(c) were replaced by the levels set in section 251A. See page 91. 

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

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

(X) for fiscal year 2021, $496,000,000 in additional new budget authority. 

(ii) As used in this subparagraph, the term ‘‘additional new budget authority’’ means the amount provided for a fiscal year, in excess of $311,000,000, in an 

appropriation Act and specified to pay for the costs of 

the health care fraud and abuse control program. 

(D) DISASTER FUNDING.— 

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

Congress designates as being for disaster relief in statute, the adjustment for a fiscal year shall be the total 

of such appropriations for the fiscal year in discretionary accounts designated as being for disaster relief, but not to exceed the total of— 

(I) the average funding provided for disaster 

relief over the previous 10 years, excluding the 

highest and lowest years; and 

(II) the amount, for years when the enacted 

new discretionary budget authority designated as 

being for disaster relief for the preceding fiscal 

year was less than the average as calculated in 

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

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

days after the date of the enactment of the Budget 

Control Act of 2011. 

(iii) For the purposes of this subparagraph, the 

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

Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).44

(iv) Appropriations considered disaster relief 

under this subparagraph in a fiscal year shall not be 

eligible for adjustments under subparagraph (A) for 

the fiscal year. 

(c) DISCRETIONARY SPENDING LIMIT.45—As used in this part, 

the term ‘‘discretionary spending limit’’ means— 
91 Sec. 251A DEFICIT CONTROL ACT OF 1985 

46The term ‘‘joint committee’’ refers to the Joint Select Committee on Deficit Reduction established by the Budget Control Act of 2011 [Public Law 112–25] The Joint Select Committee on 

Deficit Reduction was terminated on January 31, 2012. See page 197. 47See section 401(b)(3)(B)(i)(II) of the Budget Control Act of 2011 on page 193. 48 After January 15, 2012, the levels set forth in section 251(c) were superseded by the levels 

set in section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985. 

(1) with respect to fiscal year 2012— 

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

budget authority; and 

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

new budget authority; 

(2) with respect to fiscal year 2013— 

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

budget authority; and 

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

new budget authority; 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

as adjusted in strict conformance with subsection (b). 

SEC. 251A. ø2 U.S.C. 901a¿ ENFORCEMENT OF BUDGET GOAL. 

Unless a joint committee46 bill achieving an amount greater 

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

401(b)(3)(B)(i)(II) of the Budget Control Act of 2011 47 is enacted by 

January 15, 2012, the discretionary spending limits listed in section 251(c) 48 shall be revised, and discretionary appropriations and 

direct spending shall be reduced, as follows: 

(1) REVISED SECURITY CATEGORY; REVISED NONSECURITY

CATEGORY.— 

(A) The term ‘‘revised security category’’ means discretionary appropriations in budget function 050. 

(B) The term ‘‘revised nonsecurity category’’ means 

discretionary appropriations other than in budget function 

050. 

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

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

(A) For fiscal year 2013— 

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

budget authority; and 
Sec. 251A DEFICIT CONTROL ACT OF 1985 92 

49See section 401(b)(3)(B)(i)(II) of the Budget Control Act of 2011 on page 193. 

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

in budget authority. 

(B) For fiscal year 2014— (i) for the security category, $556,000,000,000 in 

budget authority; and (ii) for the nonsecurity category, $510,000,000,000 

in budget authority. 

(C) For fiscal year 2015— (i) for the security category, $566,000,000,000 in 

budget authority; and (ii) for the nonsecurity category, $520,000,000,000 

in budget authority. 

(D) For fiscal year 2016— (i) for the security category, $577,000,000,000 in 

budget authority; and (ii) for the nonsecurity category, $530,000,000,000 

in budget authority. 

(E) For fiscal year 2017— (i) for the security category, $590,000,000,000 in 

budget authority; and (ii) for the nonsecurity category, $541,000,000,000 

in budget authority. 

(F) For fiscal year 2018— (i) for the security category, $603,000,000,000 in 

budget authority; and (ii) for the nonsecurity category, $553,000,000,000 

in budget authority. 

(G) For fiscal year 2019— 

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

budget authority; and 

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

in budget authority. 

(H) For fiscal year 2020— 

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

budget authority; and 

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

in budget authority. 

(I) For fiscal year 2021— 

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

budget authority; and 

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

in budget authority. 

(3) CALCULATION OF TOTAL DEFICIT REDUCTION.—OMB 

shall calculate the amount of the deficit reduction required by 

this section for each of fiscal years 2013 through 2021 by— (A) starting with $1,200,000,000,000; 

(B) subtracting the amount of deficit reduction 

achieved by the enactment of a joint committee bill, as provided in section 401(b)(3)(B)(i)(II) of the Budget Control 

Act of 2011;49

(C) reducing the difference by 18 percent to account 

for debt service; and 
93 Sec. 251A DEFICIT CONTROL ACT OF 1985 

(D) dividing the result by 9. 

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

fiscal year 2013, and in its sequestration preview report for fiscal years 2014 through 2021 pursuant to section 254(c), OMB 

shall allocate half of the total reduction calculated pursuant to 

paragraph (3) for that year to discretionary appropriations and 

direct spending accounts within function 050 (defense function) 

and half to accounts in all other functions (nondefense functions). 

(5) DEFENSE FUNCTION REDUCTION.—OMB shall calculate 

the reductions to discretionary appropriations and direct 

spending for each of fiscal years 2013 through 2021 for defense 

function spending as follows: 

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

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

(ii) multiplying by the discretionary spending limit 

for the revised security category for that year; and 

(iii) dividing by the sum of the discretionary 

spending limit for the security category and OMB’s 

baseline estimate of nonexempt outlays for direct 

spending programs within the defense function for 

that year. 

(B) DIRECT SPENDING.—OMB shall calculate the reduction to direct spending by taking the total reduction for the 

defense function required for that year under paragraph 

(4) and subtracting the discretionary reduction calculated 

pursuant to subparagraph (A). 

(6) NONDEFENSE FUNCTION REDUCTION.—OMB shall calculate the reduction to discretionary appropriations and to direct spending for each of fiscal years 2013 through 2021 for 

programs in nondefense functions as follows: 

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

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

(ii) multiplying by the discretionary spending limit 

for the revised nonsecurity category for that year; and 

(iii) dividing by the sum of the discretionary 

spending limit for the revised nonsecurity category 

and OMB’s baseline estimate of nonexempt outlays for 

direct spending programs in nondefense functions for 

that year. 

(B) DIRECT SPENDING.—OMB shall calculate the reduction to direct spending programs by taking the total reduction for nondefense functions required for that year under 

paragraph (4) and subtracting the discretionary reduction 

calculated pursuant to subparagraph (A). 

(7) IMPLEMENTING DISCRETIONARY REDUCTIONS.— 

(A) FISCAL YEAR 2013.—On January 2, 2013, for fiscal 

year 2013, OMB shall calculate and the President shall 

order a sequestration, effective upon issuance and under 

the procedures set forth in section 253(f), to reduce each 
Sec. 251A DEFICIT CONTROL ACT OF 1985 94 

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

baseline level of budgetary resources in that account at 

that time by a uniform percentage necessary to achieve— 

(i) for the revised security category, an amount 

equal to the defense function discretionary reduction 

calculated pursuant to paragraph (5); and 

(ii) for the revised nonsecurity category, an 

amount equal to the nondefense function discretionary 

reduction calculated pursuant to paragraph (6). 

(B) FISCAL YEARS 2014–2021.—On the date of the submission of its sequestration preview report for fiscal years 

2014 through 2021 pursuant to section 254(c) for each of 

fiscal years 2014 through 2021, OMB shall reduce the discretionary spending limit— 

(i) for the revised security category by the amount 

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

(ii) for the revised nonsecurity category by the 

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

(8) IMPLEMENTING DIRECT SPENDING REDUCTIONS.—On the 

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

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

achieve the direct spending reduction calculated pursuant to 

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

of direct spending pursuant to this paragraph, OMB shall follow the procedures specified in section 6 of the Statutory PayAs-You-Go Act of 2010, the exemptions specified in section 255, 

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

percentage reduction for the Medicare programs specified in 

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

year. 

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

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

the reduction for all other discretionary appropriations and direct spending under paragraph (6) by a uniform percentage to 

a level sufficient to achieve the reduction required by paragraph (6) in the non-defense function. 

(10) IMPLEMENTATION OF REDUCTIONS.—Any reductions 

imposed under this section shall be implemented in accordance 

with section 256(k). 

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

OMB shall submit a report to Congress containing information 

about the calculations required under this section, the adjusted 

discretionary spending limits, a listing of the reductions required for each nonexempt direct spending account, and any 

other data and explanations that enhance public understanding of this title and actions taken under it. 
95 Sec. 252 DEFICIT CONTROL ACT OF 1985 

50Section 252 is in force since BBEDCA was made permanent by the Budget Control Act of 

2011 (Public Law 112–25), but the years specified in the section render it inoperable. 51There is no subsection 256(c) of the Balanced Budget and Emergency Deficit Control Act 

of 1985. The Statutory Pay-As-You-Go Act of 2010 (Public Law 111-139) deleted this subsection. 

SEC. 252. ø2 U.S.C. 902¿ ENFORCING PAY-AS-YOU-GO.50

(a) PURPOSE.—The purpose of this section is to assure that any 

legislation enacted before October 1, 2002, affecting direct spending 

or receipts that increases the deficit will trigger an offsetting sequestration. 

(b) SEQUESTRATION.— 

(1) TIMING.—Not later than 15 calendar days after the 

date Congress adjourns to end a session and on the same day 

as a sequestration (if any) under section 251 or 253, there shall 

be a sequestration to offset the amount of any net deficit increase caused by all direct spending and receipts legislation enacted before October 1, 2002, as calculated under paragraph 

(2). 

(2) CALCULATION OF DEFICIT INCREASE.—OMB shall calculate the amount of deficit increase or decrease by adding— 

(A) all OMB estimates for the budget year of direct 

spending and receipts legislation transmitted under subsection (d); 

(B) the estimated amount of savings in direct spending 

programs applicable to budget year resulting from the 

prior year’s sequestration under this section or section 253, 

if any, as published in OMB’s final sequestration report for 

that prior year; and 

(C) any net deficit increase or decrease in the current 

year resulting from all OMB estimates for the current year 

of direct spending and receipts legislation transmitted 

under subsection (d) that were not reflected in the final 

OMB sequestration report for the current year. 

(c) ELIMINATING A DEFICIT INCREASE.— 

(1) The amount required to be sequestered in a fiscal year 

under subsection (b) shall be obtained from non-exempt direct 

spending accounts from actions taken in the following order: 

(A) FIRST.—All reductions in automatic spending increases specified in section 256(a) shall be made. 

(B) SECOND.—If additional reductions in direct spending accounts are required to be made, the maximum reductions permissible under sections 256(b) (guaranteed and 

direct student loans) and 256(c) 51 (foster care and adoption assistance) shall be made. 

(C) THIRD.— 

(i) If additional reductions in direct spending accounts are required to be made, each remaining nonexempt direct spending account shall be reduced by 

the uniform percentage necessary to make the reductions in direct spending required by paragraph (1); except that the medicare programs specified in section 

256(d) shall not be reduced by more than 4 percent 

and the uniform percentage applicable to all other direct spending programs under this paragraph shall be 
Sec. 252 DEFICIT CONTROL ACT OF 1985 96 

52This paragraph, pursuant to section 252(d)(1) of the Budget Control Act of 2011, no longer 

applies to the Congressional Budget Office. 

increased (if necessary) to a level sufficient to achieve 

the required reduction in direct spending. 

(ii) For purposes of determining reductions under 

clause (i), outlay reductions (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. 

(2) For purposes of this subsection, accounts shall be assumed to be at the level in the baseline. 

(d) ESTIMATES.— 

(1) CBO ESTIMATES.52—As soon as practicable after Congress completes action on any direct spending or receipts legislation, CBO shall provide an estimate to OMB of that legislation. 

(2) OMB ESTIMATES.—Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date 

of enactment of any direct spending or receipts legislation, 

OMB shall transmit a report to the House of Representatives 

and to the Senate containing— 

(A) the CBO estimate of that legislation; 

(B) an OMB estimate of that legislation using current 

economic and technical assumptions; and 

(C) an explanation of any difference between the 2 estimates. 

(3) SIGNIFICANT DIFFERENCES.—If during the preparation 

of the report under paragraph (2) OMB determines that there 

is a significant difference between the OMB and CBO estimates, OMB shall consult with the Committees on the Budget 

of the House of Representatives and the Senate regarding that 

difference and that consultation, to the extent practicable, 

shall include written communication to such committees that 

affords such committees the opportunity to comment before the 

issuance of that report. 

(4) SCOPE OF ESTIMATES.—The estimates under this section 

shall include the amount of change in outlays or receipts for 

the current year (if applicable), the budget year, and each outyear excluding any amounts resulting from— 

(A) full funding of, and continuation of, the deposit insurance guarantee commitment in effect under current estimates; and 

(B) emergency provisions as designated under subsection (e). 

(5) SCOREKEEPING GUIDELINES.—OMB and CBO, after consultation with each other and the Committees on the Budget 

of the House of Representatives and the Senate, shall— 

(A) determine common scorekeeping guidelines; and 

(B) in conformance with such guidelines, prepare estimates under this section. 
97 Sec. 253 DEFICIT CONTROL ACT OF 1985 

53See page 271: Clause 2(e) of rule XXI of the Rules of the House of Representatives reads 

as follows: 

‘‘(e) A provision other than an appropriation designated an emergency under section 251(b)(2) 

or section 252(e) of the Balanced Budget and Emergency Deficit Control Act, a rescission of 

budget authority, or a reduction in direct spending or an amount for a designated emergency 

may not be reported in an appropriation bill or joint resolution containing an emergency designation under section 251(b)(2) or section 252(e) of such Act and may not be in order as an 

amendment thereto.’’ 54Section 253 is in force since BBEDCA was made permanent by the Budget Control Act of 

2011 (Public Law 112–25), but the section is inoperable. 

(e) 53 EMERGENCY LEGISLATION.—If a provision of direct spending or receipts legislation is enacted that the President designates 

as an emergency requirement and that the Congress so designates 

in statute, the amounts of new budget authority, outlays, and receipts in all fiscal years resulting from that provision shall be designated as an emergency requirement in the reports required under 

subsection (d). This subsection shall not apply to direct spending 

provisions to cover agricultural crop disaster assistance. 

SEC. 253. ø2 U.S.C. 903¿ ENFORCING DEFICIT TARGETS.54

(a) SEQUESTRATION.—Within 15 calendar days after Congress 

adjourns to end a session (other than of the One Hundred First 

Congress) and on the same day as a sequestration (if any) under 

section 251 and section 252, but after any sequestration required 

by section 251 (enforcing discretionary spending limits) or section 

252 (enforcing pay-as-you-go), 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— 

(1) the maximum deficit amount for that year; 

(2) the amounts for that year designated as emergency direct spending or receipts legislation under section 252(e); and 

(3) for any fiscal year in which there is not a full adjustment for technical and economic reestimates, the deposit insurance reestimate for that year, if any, calculated under subsection (h). 

The ‘‘margin’’ for fiscal year 1992 or 1993 is zero and for fiscal year 

1994 or 1995 is $15,000,000,000. 

(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 1991 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 

sequestrable budgetary resources in that account at that time by 

the uniform percentage necessary to carry out subsection (c), except 

that, if any military personnel are exempt, adjustments shall be 

made under the procedure set forth in section 251(a)(3). 

(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. 
Sec. 253 DEFICIT CONTROL ACT OF 1985 98 

(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, nondefense account shall be reduced by the uniform percentage necessary to make the reductions in non-defense outlays required by subsection (c), except that— 

(i) the medicare program specified in section 

256(d) shall not be reduced by more than 2 percent in 

total including any reduction of less than 2 percent 

made under section 252 or, if it has been reduced by 

2 percent or more under section 252, it may not be further reduced under this section; and 

(ii) the health programs set forth in section 256(e) 

shall not be reduced by more than 2 percent in total 

(including any reduction made under section 251), 

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. 

(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 252. 

(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 fullyear 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) ADJUSTMENTS TO MAXIMUM DEFICIT AMOUNTS.— 

(1) ADJUSTMENTS.— 

(A) When the President submits the budget for fiscal 

year 1992, the maximum deficit amounts for fiscal years 
99 Sec. 253 DEFICIT CONTROL ACT OF 1985 

1992, 1993, 1994, and 1995 shall be adjusted to reflect upto-date reestimates of economic and technical assumptions 

and any changes in concepts or definitions. When the 

President submits the budget for fiscal year 1993, the 

maximum deficit amounts for fiscal years 1993, 1994, and 

1995 shall be further adjusted to reflect up-to-date reestimates of economic and technical assumptions and any 

changes in concepts or definitions. 

(B) When submitting the budget for fiscal year 1994, 

the President may choose to adjust the maximum deficit 

amounts for fiscal years 1994 and 1995 to reflect up-todate reestimates of economic and technical assumptions. If 

the President chooses to adjust the maximum deficit 

amount when submitting the fiscal year 1994 budget, the 

President may choose to invoke the same adjustment procedure when submitting the budget for fiscal year 1995. In 

each case, the President must choose between making no 

adjustment or the full adjustment described in paragraph 

(2). If the President chooses to make that full adjustment, 

then those procedures for adjusting discretionary spending 

limits described in sections 251(b)(1)(C) and 251(b)(2)(E), 

otherwise applicable through fiscal year 1993 or 1994 (as 

the case may be), shall be deemed to apply for fiscal year 

1994 (and 1995 if applicable). 

(C) When the budget for fiscal year 1994 or 1995 is 

submitted and the sequestration reports for those years 

under section 254 are made (as applicable), if the President does not choose to make the adjustments set forth in 

subparagraph (B), the maximum deficit amount for that 

fiscal year shall be adjusted by the amount of the adjustment to discretionary spending limits first applicable for 

that year (if any) under section 251(b). 

(D) For each fiscal year the adjustments required to be 

made with the submission of the President’s budget for 

that year shall also be made when OMB submits the sequestration update report and the final sequestration report for that year, but OMB shall continue to use the economic and technical assumptions in the President’s budget 

for that year. 

Each adjustment shall be made by increasing or decreasing the 

maximum deficit amounts set forth in section 601 of the Congressional Budget Act of 1974. 

(2) CALCULATIONS OF ADJUSTMENTS.—The required increase or decrease shall be calculated as follows: 

(A) The baseline deficit or surplus shall be calculated 

using up-to-date economic and technical assumptions, 

using up-to-date concepts and definitions, and, in lieu of 

the baseline levels of discretionary appropriations, using 

the discretionary spending limits set forth in section 601 

of the Congressional Budget Act of 1974 as adjusted under 

section 251. 

(B) The net deficit increase or decrease caused by all 

direct spending and receipts legislation enacted after the 

date of enactment of this section (after adjusting for any 
Sec. 254 DEFICIT CONTROL ACT OF 1985 100 

sequestration of direct spending accounts) shall be calculated for each fiscal year by adding— 

(i) the estimates of direct spending and receipts 

legislation transmitted under section 252(d) applicable 

to each such fiscal year; and 

(ii) the estimated amount of savings in direct 

spending programs applicable to each such fiscal year 

resulting from the prior year’s sequestration under 

this section or section 252 of direct spending, if any, 

as contained in OMB’s final sequestration report for 

that year. 

(C) The amount calculated under subparagraph (B) 

shall be subtracted from the amount calculated under subparagraph (A). 

(D) The maximum deficit amount set forth in section 

601 of the Congressional Budget Act of 1974 shall be subtracted from the amount calculated under subparagraph 

(C). 

(E) The amount calculated under subparagraph (D) 

shall be the amount of the adjustment required by paragraph (1). 

(h) TREATMENT OF DEPOSIT INSURANCE.— (1) INITIAL ESTIMATES.—The initial estimates of the net 

costs of federal deposit insurance for fiscal year 1994 and fiscal 

year 1995 (assuming full funding of, and continuation of, the 

deposit insurance guarantee commitment in effect on the date 

of the submission of the budget for fiscal year 1993) shall be 

set forth in that budget. 

(2) REESTIMATES.—For fiscal year 1994 and fiscal year 

1995, the amount of the reestimate of deposit insurance costs 

shall be calculated by subtracting the amount set forth under 

paragraph (1) for that year from the current estimate of deposit insurance costs (but assuming full funding of, and continuation of, the deposit insurance guarantee commitment in 

effect on the date of submission of the budget for fiscal year 

1993). 

SEC. 254. ø2 U.S.C. 904¿ REPORTS AND ORDERS. 

(a) TIMETABLE.—The timetable with respect to this part for any 

budget year is as follows: 

Date: Action to be completed: 

January 21 ............................................ Notification regarding optional adjustment of maximum deficit amount. 

5 days before the President’s budget 

submission.

CBO sequestration preview report. 

The President’s budget submission ..... OMB sequestration preview report. 

August 10 .............................................. Notification regarding military personnel. 

August 15 .............................................. CBO sequestration update report. 

August 20 .............................................. OMB sequestration update report. 

10 days after end of session ................ CBO final sequestration report. 

15 days after end of session ................ OMB final sequestration report; Presidential order. 

(b) SUBMISSION AND AVAILABILITY OF REPORTS.—Each report 

required by this section shall be submitted, in the case of CBO, to 

the House of Representatives, the Senate and OMB and, in the 
101 Sec. 254 DEFICIT CONTROL ACT OF 1985 

55The Congressional Budget Office is not required to prepare a report under this subsection 

pursuant to section 104(b) of the Budget Control Act of 2011. 

case of OMB, to the House of Representatives, the Senate, and the 

President on the day it is issued. On the following day a notice of 

the report shall be printed in the Federal Register. 

(c) SEQUESTRATION PREVIEW REPORTS.55— (1) REPORTING REQUIREMENT.—On the dates specified in 

subsection (a), OMB and CBO shall issue a preview report regarding discretionary, pay-as-you-go, and deficit sequestration 

based on laws enacted through those dates. 

(2) DISCRETIONARY SEQUESTRATION REPORT.—The preview 

reports shall set forth estimates for the current year and each 

subsequent year through 2021 of the applicable discretionary 

spending limits for each category and an explanation of any 

adjustments in such limits under section 251. 

(3) PAY-AS-YOU-GO SEQUESTRATION REPORTS.—The preview 

reports shall set forth, for the current year and the budget 

year, estimates for each of the following: 

(A) The amount of net deficit increase or decrease, if 

any, calculated under subsection 252(b). 

(B) A list identifying each law enacted and sequestration implemented after the date of enactment of this section included in the calculation of the amount of deficit increase or decrease and specifying the budgetary effect of 

each such law. 

(C) The sequestration percentage or (if the required 

sequestration percentage is greater than the maximum allowable percentage for medicare) percentages necessary to 

eliminate a deficit increase under section 252(c). 

(4) DEFICIT SEQUESTRATION REPORTS.—The preview reports 

shall set forth for the budget year estimates for each of the following: 

(A) The maximum deficit amount, the estimated deficit calculated under section 253(b), the excess deficit, and 

the margin. 

(B) The amount of reductions required under section 

252, the excess deficit remaining after those reductions 

have been made, and the amount of reductions required 

from defense accounts and the reductions required from 

non-defense accounts. 

(C) The sequestration percentage necessary to achieve 

the required reduction in defense accounts under section 

253(d). 

(D) The reductions required under sections 253(e)(1) 

and 253(e)(2). 

(E) The sequestration percentage necessary to achieve 

the required reduction in non-defense accounts under section 253(e)(3). 

The CBO report need not set forth the items other than the 

maximum deficit amount for fiscal year 1992, 1993, or any fiscal year for which the President notifies the House of Representatives and the Senate that he will adjust the maximum 

deficit amount under the option under section 253(g)(1)(B). 
Sec. 254 DEFICIT CONTROL ACT OF 1985 102 

56The Congressional Budget Office is not required to prepare a report under this subsection 

pursuant to section 104(b) of the Budget Control Act of 2011. 

(5) EXPLANATION OF DIFFERENCES.—The OMB reports shall 

explain the differences between OMB and CBO estimates for 

each item set forth in this subsection. 

(d) NOTIFICATION REGARDING MILITARY PERSONNEL.—On or before the date specified in subsection (a), the President shall notify 

the Congress of the manner in which he intends to exercise flexibility with respect to military personnel accounts under section 

255(f). 

(e) SEQUESTRATION UPDATE REPORTS.—On the dates specified 

in subsection (a), OMB and CBO shall issue a sequestration update 

report, reflecting laws enacted through those dates, containing all 

of the information required in the sequestration preview reports. 

This report shall also contain a preview estimate of the adjustment 

for disaster funding for the upcoming fiscal year. 

(f) FINAL SEQUESTRATION REPORTS.56— (1) REPORTING REQUIREMENT.—On the dates specified in 

subsection (a), OMB and CBO shall issue a final sequestration 

report, updated to reflect laws enacted through those dates. 

(2) DISCRETIONARY SEQUESTRATION REPORTS.—The final reports shall set forth estimates for each of the following: 

(A) For the current year and each subsequent year 

through 2021 the applicable discretionary spending limits 

for each category and an explanation of any adjustments 

in such limits under section 251, including a final estimate 

of the adjustment for disaster funding. 

(B) For the current year and the budget year the estimated new budget authority and outlays for each category 

and the breach, if any, in each category. 

(C) For each category for which a sequestration is required, the sequestration percentages necessary to achieve 

the required reduction. 

(D) 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. 

(3) PAY-AS-YOU-GO AND DEFICIT SEQUESTRATION REPORTS.— 

The final reports shall contain all the information required in 

the pay-as-you-go and deficit 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 sequestrable 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. 

(4) EXPLANATION OF DIFFERENCES.—The OMB report shall 

explain any differences between OMB and CBO estimates of 

the amount of any net deficit change calculated under subsection 252(b), any excess deficit, any breach, and any required 

sequestration percentage. The OMB report shall also explain 
103 Sec. 254 DEFICIT CONTROL ACT OF 1985 

57The Congressional Budget Office is not required to prepare a report under this subsection 

pursuant to section 104(b) of the Budget Control Act of 2011. 

differences in the amount of sequesterable resources for any 

budget account to be reduced if such difference is greater than 

$5,000,000. 

(5) PRESIDENTIAL ORDER.—On the date specified in subsection (a), if in its final sequestration report OMB estimates 

that any sequestration is required, the President shall issue an 

order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This 

order shall be effective on issuance. 

(g) WITHIN-SESSION SEQUESTRATION REPORTS AND ORDER.—If 

an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before 

July 1 of that fiscal year) that causes a breach, 10 days later CBO 

shall issue a report containing the information required in paragraph (f)(2). Fifteen days after enactment, OMB shall issue a report containing the information required in paragraphs (f)(2) and 

(f)(4). On the same day as the OMB report, the President shall 

issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. 

This order shall be effective on issuance. 

(h) GAO COMPLIANCE REPORT.—Upon request of the Committee on the Budget of the House of Representatives or the Senate, the Comptroller General shall submit to the Congress and the 

President a report on— 

(1) the extent to which each order issued by the President 

under this section complies with all of the requirements contained in this part, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not; and 

(2) the extent to which each report issued by OMB or CBO 

under this section complies with all of the requirements contained in this part, either certifying that the report fully and 

accurately complies with such requirements or indicating the 

respects in which it does not. 

(i) LOW-GROWTH REPORT.57—At any time, CBO shall notify the 

Congress if— 

(1) during the period consisting of the quarter during 

which such notification is given, the quarter preceding such notification, and the 4 quarters following such notification, CBO 

or OMB has determined that real economic growth is projected 

or estimated to be less than zero with respect to each of any 

2 consecutive quarters within such period; or 

(2) the most recent of the Department of Commerce’s advance preliminary or final reports of actual real economic 

growth indicate that the rate of real economic growth for each 

of the most recently reported quarter and the immediately preceding quarter is less than one percent. 

(j) ECONOMIC AND TECHNICAL ASSUMPTIONS.—In all reports required by this section, OMB shall use the same economic and technical assumptions as used in the most recent budget submitted by 

the President under section 1105(a) of title 31, United States Code. 
Sec. 255 DEFICIT CONTROL ACT OF 1985 104 

58Section 255 also applies to any sequestration ordered pursuant to the Statutory Pay-As-YouGo Act of 2010 (Public Law 111–139). See page 143. 59The reference to sections of title 45, United States Code in section 255(a) should be a reference to sections 3 and 4 of the Railroad Retirement Act of 1937 (45 U.S.C. 231 et seq.). 

SEC. 255. ø2 U.S.C. 905¿ EXEMPT PROGRAMS AND ACTIVITIES.58

(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 (42 U.S.C. 401 et seq.), and benefits payable 

under section 231b(a), 231b(f)(2), 231c(a), and 231c(f) of title 45 

United States Code 59, shall be exempt from reduction under any 

order issued under this part. 

(b) VETERANS PROGRAMS.—The following programs shall be exempt from reduction under any order issued under this part: 

All programs administered by the Department of Veterans 

Affairs. 

Special Benefits for Certain World War II Veterans (28– 

0401–0–1–701). 

(c) NET INTEREST.—No reduction of payments for net interest 

(all of major functional category 900) shall be made under any 

order issued under this part. 

(d) REFUNDABLE INCOME TAX CREDITS.—Payments to individuals made pursuant to provisions of the Internal Revenue Code of 

1986 establishing refundable tax credits shall be exempt from reduction under any order issued under this part. 

(e) NON-DEFENSE UNOBLIGATED BALANCES.—Unobligated balances of budget authority carried over from prior fiscal years, except balances in the defense category, shall be exempt from reduction under any order issued under this part. 

(f) OPTIONAL EXEMPTION OF MILITARY PERSONNEL.— 

(1) IN GENERAL.—The President may, with respect to any 

military personnel 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. 

(g) OTHER PROGRAMS AND ACTIVITIES.— 

(1)(A) The following budget accounts and activities shall be 

exempt from reduction under any order issued under this part: 

Activities resulting from private donations, bequests, 

or voluntary contributions to the Government. 

Activities financed by voluntary payments to the Government for goods or services to be provided for such payments. 

Administration of Territories, Northern Mariana Islands Covenant grants (14–0412–0–1–808). 

Advances to the Unemployment Trust Fund and Other 

Funds (16–0327–0–1–600). 

Black Lung Disability Trust Fund Refinancing (16– 

0329–0–1–601). 
105 Sec. 255 DEFICIT CONTROL ACT OF 1985 

Bonneville Power Administration Fund and borrowing 

authority established pursuant to section 13 of Public Law 

93–454 (1974), as amended (89–4045–0–3–271). 

Claims, Judgments, and Relief Acts (20–1895–0–1– 

808). 

Compact of Free Association (14–0415–0–1–808). 

Compensation of the President (11–0209–01–1–802). 

Comptroller of the Currency, Assessment Funds (20– 

8413–0–8–373). 

Continuing Fund, Southeastern Power Administration 

(89–5653–0–2–271). 

Continuing Fund, Southwestern Power Administration 

(89–5649–0–2–271). 

Dual Benefits Payments Account (60–0111–0–1–601). 

Emergency Fund, Western Area Power Administration 

(89–5069–0–2–271). 

Exchange Stabilization Fund (20–4444–0–3–155). 

Farm Credit Administration Operating Expenses Fund 

(78–4131–0–3–351). 

Farm Credit System Insurance Corporation, Farm 

Credit Insurance Fund (78–4171–0–3–351). 

Federal Deposit Insurance Corporation, Deposit Insurance Fund (51–4596–0–4–373). 

Federal Deposit Insurance Corporation, FSLIC Resolution Fund (51–4065–0–3–373). 

Federal Deposit Insurance Corporation, Noninterest 

Bearing Transaction Account Guarantee (51–4458–0–3– 

373). 

Federal Deposit Insurance Corporation, Senior Unsecured Debt Guarantee (51–4457–0–3–373). 

Federal Home Loan Mortgage Corporation (Freddie 

Mac). 

Federal Housing Finance Agency, Administrative Expenses (95–5532–0–2–371). 

Federal National Mortgage Corporation (Fannie Mae). 

Federal Payment to the District of Columbia Judicial 

Retirement and Survivors Annuity Fund (20–1713–0–1– 

752). 

Federal Payment to the District of Columbia Pension 

Fund (20–1714–0–1–601). 

Federal Payments to the Railroad Retirement Accounts (60–0113–0–1–601). 

Federal Reserve Bank Reimbursement Fund (20– 

1884–0–1–803). 

Financial Agent Services (20–1802–0–1–803). 

Foreign Military Sales Trust Fund (11–8242–0–7– 

155). 

Hazardous Waste Management, Conservation Reserve 

Program (12–4336–0–3–999). 

Host Nation Support Fund for Relocation (97–8337–0– 

7–051). 

Internal Revenue Collections for Puerto Rico (20– 

5737–0–2–806). 
Sec. 255 DEFICIT CONTROL ACT OF 1985 106 

Intragovernmental funds, including those from which 

the outlays are derived primarily from resources paid in 

from other government accounts, except to the extent such 

funds are augmented by direct appropriations for the fiscal 

year during which an order is in effect. 

Medical Facilities Guarantee and Loan Fund (75– 

9931–0–3–551). 

National Credit Union Administration, Central Liquidity Facility (25–4470–0–3–373). 

National Credit Union Administration, Corporate 

Credit Union Share Guarantee Program (25–4476–0–3– 

376). 

National Credit Union Administration, Credit Union 

Homeowners Affordability Relief Program (25–4473–0–3– 

371). 

National Credit Union Administration, Credit Union 

Share Insurance Fund (25–4468–0–3–373). 

National Credit Union Administration, Credit Union 

System Investment Program (25–4474–0–3–376). 

National Credit Union Administration, Operating fund 

(25–4056–0–3–373). 

National Credit Union Administration, Share Insurance Fund Corporate Debt Guarantee Program (25–4469– 

0–3–376). 

National Credit Union Administration, U.S. Central 

Federal Credit Union Capital Program (25–4475–0–3–376). 

Office of Thrift Supervision (20–4108–0–3–373). 

Panama Canal Commission Compensation Fund (16– 

5155–0–2–602). 

Payment of Vietnam and USS Pueblo prisoner-of-war 

claims within the Salaries and Expenses, Foreign Claims 

Settlement account (15–0100–0–1–153). 

Payment to Civil Service Retirement and Disability 

Fund (24–0200–0–1–805). 

Payment to Department of Defense Medicare-Eligible 

Retiree Health Care Fund (97–0850–0–1–054). 

Payment to Judiciary Trust Funds (10–0941–0–1– 

752). 

Payment to Military Retirement Fund (97–0040–0–1– 

054). 

Payment to the Foreign Service Retirement and Disability Fund (19–0540–0–1–153). 

Payments to Copyright Owners (03–5175–0–2–376). 

Payments to Health Care Trust Funds (75–0580–0–1– 

571). 

Payment to Radiation Exposure Compensation Trust 

Fund (15–0333–0–1–054). 

Payments to Social Security Trust Funds (28–0404–0– 

1–651). 

Payments to the United States Territories, Fiscal Assistance (14–0418–0–1–806). 

Payments to trust funds from excise taxes or other receipts properly creditable to such trust funds. 
107 Sec. 255 DEFICIT CONTROL ACT OF 1985 

Payments to widows and heirs of deceased Members of 

Congress (00–0215–0–1–801). 

Postal Service Fund (18–4020–0–3–372). 

Radiation Exposure Compensation Trust Fund (15– 

8116–0–1–054). 

Reimbursement to Federal Reserve Banks (20–0562– 

0–1–803). 

Salaries of Article III judges. 

Soldiers and Airmen’s Home, payment of claims (84– 

8930–0–7–705). 

Tennessee Valley Authority Fund, except nonpower 

programs and activities (64–4110–0–3–999). 

Tribal and Indian trust accounts within the Department of the Interior which fund prior legal obligations of 

the Government or which are established pursuant to Acts 

of Congress regarding Federal management of tribal real 

property or other fiduciary responsibilities, including but 

not limited to Tribal Special Fund (14–5265–0–2–452), 

Tribal Trust Fund (14–8030–0–7–452), White Earth Settlement (14–2204–0–1–452), and Indian Water Rights and 

Habitat Acquisition (14–5505–0–2–303). 

United Mine Workers of America 1992 Benefit Plan 

(95–8260–0–7–551). 

United Mine Workers of America 1993 Benefit Plan 

(95–8535–0–7–551). 

United Mine Workers of America Combined Benefit 

Fund (95–8295–0–7–551). 

United States Enrichment Corporation Fund (95– 

4054–0–3–271). 

Universal Service Fund (27–5183–0–2–376). 

Vaccine Injury Compensation (75–0320–0–1–551). 

Vaccine Injury Compensation Program Trust Fund 

(20–8175–0–7–551). 

(B) The following Federal retirement and disability accounts and activities shall be exempt from reduction under any 

order issued under this part: 

Black Lung Disability Trust Fund (20–8144–0–7–601). 

Central Intelligence Agency Retirement and Disability 

System Fund (56–3400–0–1–054). 

Civil Service Retirement and Disability Fund (24– 

8135–0–7–602). 

Comptrollers general retirement system (05–0107–0– 

1–801). 

Contributions to U.S. Park Police annuity benefits, 

Other Permanent Appropriations (14–9924–0–2–303). 

Court of Appeals for Veterans Claims Retirement 

Fund (95–8290–0–7–705). 

Department of Defense Medicare-Eligible Retiree 

Health Care Fund (97–5472–0–2–551). 

District of Columbia Federal Pension Fund (20–5511– 

0–2–601). 

District of Columbia Judicial Retirement and Survivors Annuity Fund (20–8212–0–7–602). 
Sec. 255 DEFICIT CONTROL ACT OF 1985 108 

Energy Employees Occupational Illness Compensation 

Fund (16–1523–0–1–053). 

Foreign National Employees Separation Pay (97– 

8165–0–7–051). 

Foreign Service National Defined Contributions Retirement Fund (19–5497–0–2–602). 

Foreign Service National Separation Liability Trust 

Fund (19–8340–0–7–602). 

Foreign Service Retirement and Disability Fund (19– 

8186–0–7–602). 

Government Payment for Annuitants, Employees 

Health Benefits (24–0206–0–1–551). 

Government Payment for Annuitants, Employee Life 

Insurance (24–0500–0–1–602). 

Judicial Officers’ Retirement Fund (10–8122–0–7– 

602). 

Judicial Survivors’ Annuities Fund (10–8110–0–7– 

602). 

Military Retirement Fund (97–8097–0–7–602). 

National Railroad Retirement Investment Trust (60– 

8118–0–7–601). 

National Oceanic and Atmospheric Administration retirement (13–1450–0–1–306). 

Pensions for former Presidents (47–0105–0–1–802). 

Postal Service Retiree Health Benefits Fund (24– 

5391–0–2–551). 

Public Safety Officer Benefits (15–0403–0–1–754). 

Rail Industry Pension Fund (60–8011–0–7–601). 

Retired Pay, Coast Guard (70–0602–0–1–403). 

Retirement Pay and Medical Benefits for Commissioned Officers, Public Health Service (75–0379–0–1–551). 

Special Benefits for Disabled Coal Miners (16–0169–0– 

1–601). 

Special Benefits, Federal Employees’ Compensation 

Act (16–1521–0–1–600). 

Special Workers Compensation Expenses (16–9971–0– 

7–601). 

Tax Court Judges Survivors Annuity Fund (23–8115– 

0–7–602). 

United States Court of Federal Claims Judges’ Retirement Fund (10–8124–0–7–602). 

United States Secret Service, DC Annuity (70–0400– 

0–1–751). 

Voluntary Separation Incentive Fund (97–8335–0–7– 

051). 

(2) Prior legal obligations of the Government in the following budget accounts and activities shall be exempt from any 

order issued under this part: 

Biomass Energy Development (20–0114–0–1–271). 

Check Forgery Insurance Fund (20–4109–0–3–803). 

Credit liquidating accounts. 

Credit reestimates. 

Employees Life Insurance Fund (24–8424–0–8–602). 
109 Sec. 255 DEFICIT CONTROL ACT OF 1985 

Federal Aviation Insurance Revolving Fund (69–4120– 

0–3–402). 

Federal Crop Insurance Corporation Fund (12–4085– 

0–3–351). 

Federal Emergency Management Agency, National 

Flood Insurance Fund (58–4236–0–3–453). 

Geothermal resources development fund (89–0206–0– 

1–271). 

Low-Rent Public Housing—Loans and Other Expenses 

(86–4098–0–3–604). 

Maritime Administration, War Risk Insurance Revolving Fund (69–4302–0–3–403). 

Natural Resource Damage Assessment Fund (14– 

1618–0–1–302). 

Overseas Private Investment Corporation, Noncredit 

Account (71–4184–0–3–151). 

Pension Benefit Guaranty Corporation Fund (16– 

4204–0–3–601). 

San Joaquin Restoration Fund (14–5537–0–2–301). 

Servicemembers’ Group Life Insurance Fund (36– 

4009–0–3–701). 

Terrorism Insurance Program (20–0123–0–1–376). 

(h) LOW-INCOME PROGRAMS.—The following programs shall be 

exempt from reduction under any order issued under this part: 

Academic Competitiveness/Smart Grant Program (91– 

0205–0–1–502). 

Child Care Entitlement to States (75–1550–0–1–609). 

Child Enrollment Contingency Fund (75–5551–0–2–551). 

Child Nutrition Programs (with the exception of special 

milk programs) (12–3539–0–1–605). 

Children’s Health Insurance Fund (75–0515–0–1–551). 

Commodity Supplemental Food Program (12–3507–0–1– 

605). 

Contingency Fund (75–1522–0–1–609). 

Family Support Programs (75–1501–0–1–609). 

Federal Pell Grants under section 401 Title IV of the Higher Education Act. 

Grants to States for Medicaid (75–0512–0–1–551). 

Payments for Foster Care and Permanency (75–1545–0–1– 

609). 

Supplemental Nutrition Assistance Program (12–3505–0– 

1–605). 

Supplemental Security Income Program (28–0406–0–1– 

609). 

Temporary Assistance for Needy Families (75–1552–0–1– 

609). 

(i) ECONOMIC RECOVERY PROGRAMS.—The following programs 

shall be exempt from reduction under any order issued under this 

part: 

GSE Preferred Stock Purchase Agreements (20–0125–0–1– 

371). 

Office of Financial Stability (20–0128–0–1–376). 

Special Inspector General for the Troubled Asset Relief 

Program (20–0133–0–1–376). 
Sec. 256 DEFICIT CONTROL ACT OF 1985 110 

(j) SPLIT TREATMENT PROGRAMS.—Each of the following programs shall be exempt from any order under this part to the extent 

that the budgetary resources of such programs are subject to obligation limitations in appropriations bills: 

Federal-Aid Highways (69–8083–0–7–401). 

Highway Traffic Safety Grants (69–8020–0–7–401). 

Operations and Research NHTSA and National Driver Register 

(69–8016–0–7–401). 

Motor Carrier Safety Operations and Programs (69–8159–0–7– 

401). 

Motor Carrier Safety Grants (69–8158–0–7–401). 

Formula and Bus Grants (69–8350–0–7–401). 

Grants-In-Aid for Airports (69–8106–0–7–402). 

(j) IDENTIFICATION OF PROGRAMS.—For purposes of subsections 

(b), (g), and (h), each account is identified by the designated budget 

account identification code number set forth in the Budget of the 

United States Government 2010–Appendix, and an activity within 

an account is designated by the name of the activity and the identification code number of the account. 

SEC. 256. ø2 U.S.C. 906¿ GENERAL AND SPECIAL SEQUESTRATION 

RULES. 

(b) STUDENT LOANS.—For all student loans under part B or D 

of title IV of the Higher Education Act of 1965 made during the 

period when a sequestration order under section 254 is in effect as 

required by section 252 or 253, origination fees under sections 

438(c)(2) and (6) and 455(c) and loan processing and issuance fees 

under section 428(f)(1)(A)(ii) of that Act shall each be increased by 

the uniform percentage specified in that sequestration order, and, 

for student loans originated during the period of the sequestration, 

special allowance payments under section 438(b) of that Act accruing during the period of the sequestration shall be reduced by the 

uniform percentage specified in that sequestration order. 

(d) SPECIAL RULES FOR MEDICARE PROGRAM.— (1) CALCULATION OF REDUCTION IN PAYMENT AMOUNTS.—To 

achieve the total percentage reduction in those programs required by section 252 or 253, subject to paragraph (2), and notwithstanding section 710 of the Social Security Act, OMB shall 

determine, and the applicable Presidential order under section 

254 shall implement, the percentage reduction that shall 

apply, with respect to the health insurance programs under 

title XVIII of the Social Security Act— 

(A) in the case of parts A and B of such title, to individual payments for services furnished during the one-year 

period beginning on the first day of the first month beginning after the date the order is issued (or, if later, the date 

specified in paragraph (4)); and 

(B) in the case of parts C and D, to monthly payments 

under contracts under such parts for the same one-year 

period; 

such that the reduction made in payments under that order 

shall achieve the required total percentage reduction in those 

payments for that period. 

(2) UNIFORM REDUCTION RATE; MAXIMUM PERMISSIBLE REDUCTION.—Reductions in payments for programs and activities 
111 Sec. 256 DEFICIT CONTROL ACT OF 1985 

under such title XVIII pursuant to a sequestration order under 

section 254 shall be at a uniform rate, which shall not exceed 

4 percent, across all such programs and activities subject to 

such order. 

(3) 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 during 

the effective period 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 during the 

effective period 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 during the effective 

period of the order. 

(4) TIMING OF SUBSEQUENT SEQUESTRATION ORDER.—A sequestration order required by section 252 or 253 with respect 

to programs under such title XVIII shall not take effect until 

the first month beginning after the end of the effective period 

of any prior sequestration order with respect to such programs, 

as determined in accordance with paragraph (1). 

(5) NO INCREASE IN BENEFICIARY CHARGES IN ASSIGNMENTRELATED 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. 

(6) SEQUESTRATION DISREGARDED IN COMPUTING PAYMENT

AMOUNTS.—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 part, for purposes of computing any adjustments to payment rates under 

such title XVIII, specifically including— 

(A) the part C growth percentage under section 

1853(c)(6); 
Sec. 256 DEFICIT CONTROL ACT OF 1985 112 

(B) the part D annual growth rate under section 

1860D–2(b)(6); and 

(C) application of risk corridors to part D payment 

rates under section 1860D–15(e). 

(7) EXEMPTIONS FROM SEQUESTRATION.—In addition to the 

programs and activities specified in section 255, the following 

shall be exempt from sequestration under this part: 

(A) PART D LOW-INCOME SUBSIDIES.—Premium and 

cost-sharing subsidies under section 1860D–14 of the Social Security Act. 

(B) PART D CATASTROPHIC SUBSIDY.—Payments under 

section 1860D–15(b) and (e)(2)(B) of the Social Security 

Act. 

(C) QUALIFIED INDIVIDUAL (QI) PREMIUMS.—Payments 

to States for coverage of Medicare cost-sharing for certain 

low-income Medicare beneficiaries under section 1933 of 

the Social Security Act. 

(e) COMMUNITY AND MIGRANT HEALTH CENTERS, INDIAN

HEALTH SERVICES AND FACILITIES, AND VETERANS’ MEDICAL

CARE.— (1) The maximum permissible reduction in budget authority for any account listed in paragraph (2) for any fiscal year, 

pursuant to an order issued under section 254, shall be 2 percent. 

(2) The accounts referred to in paragraph (1) are as follows: 

(A) Community health centers (75–0350–0–1–550). 

(B) Migrant health centers (75–0350–0–1–550). 

(C) Indian health facilities (75–0391–0–1–551). 

(D) Indian health services (75–0390–0–1–551). 

(E) Veterans’ medical care (36–0160–0–1–703). 

For purposes of the preceding provisions of this paragraph, 

programs are identified by the designated budget account identification code numbers set forth in the Budget of the United 

States Government—Appendix. 

(f) TREATMENT OF CHILD SUPPORT ENFORCEMENT PROGRAM.— 

Notwithstanding any change in the display of budget accounts, any 

order issued by the President under section 254 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. 

(g) FEDERAL PAY.— (1) IN GENERAL.—For purposes of any order issued under 

section 254— 

(A) Federal pay under a statutory pay system, and 

(B) elements of military pay, 

shall be subject to reduction under an order in the same manner as other administrative expense components of the Federal 

budget; except that no such order may reduce or have the effect of reducing the rate of pay to which any individual is entitled under any such statutory pay system (as increased by any 
113 Sec. 256 DEFICIT CONTROL ACT OF 1985 

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. 

(h) TREATMENT OF FEDERAL ADMINISTRATIVE EXPENSES.— 

(1) Notwithstanding any other provision of this title, 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 an order issued 

under section 254, without regard to any exemption, exception, 

limitation, or special rule which is otherwise applicable with 

respect to such program, project, activity, or account under this 

part. 

(2) Notwithstanding any other provision of law, administrative expenses of any program, project, activity, or account 

which is self-supporting and does not receive appropriations 

shall be subject to reduction under a sequester order, unless 

specifically exempted in this part. 

(3) 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 reduction or sequestration 

under this part 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 such reduction or sequestration; except that Federal 

payments made to a State as reimbursement of administrative 

costs incurred by such State under or in connection with the 

unemployment compensation programs specified in subsection 

(h)(1) shall be subject to reduction or sequestration under this 

part notwithstanding the exemption otherwise granted to such 

programs under that subsection. 
Sec. 256 DEFICIT CONTROL ACT OF 1985 114 

(4) Notwithstanding any other provision of law, this subsection shall not apply with respect to the following: 

(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 Trust Corporation. 

(H) Farm Credit Administration. 

(i) TREATMENT OF PAYMENTS AND ADVANCES MADE WITH RE- SPECT TO UNEMPLOYMENT COMPENSATION PROGRAMS.— (1) For purposes of section 254— 

(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, 

shall not be subject to reduction. 

(2)(A) 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 section 254 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. 

(B) 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. 

(j) 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) Loan eligibility under any contract entered into 

with a person by the Commodity Credit Corporation prior 

to the time an order has been issued under section 254 

shall not be reduced by an order subsequently issued. Sub-
115 Sec. 256 DEFICIT CONTROL ACT OF 1985 

ject to subparagraph (B), after an order is issued under 

such section for a fiscal year, any cash payments for loans 

or loan deficiencies made by the Commodity Credit Corporation shall be subject to reduction under the order. 

(B) Each loan 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 an order under section 254, the order shall provide that the necessary reduction in payments under contracts applicable to the commodity be uniformly applied to 

all contracts for the next succeeding crop of the commodity, under the authority provided in paragraph (3). 

(3) DELAYED REDUCTION IN OUTLAYS PERMISSIBLE.—Notwithstanding any other provision of this title, if an order under 

section 254 is issued with respect to a fiscal year, any reduction under the order applicable to contracts described in paragraph (1) may provide for reductions in outlays for the account 

involved to occur in the fiscal year following the fiscal year to 

which the order applies. 

(4) UNIFORM PERCENTAGE RATE OF REDUCTION AND OTHER

LIMITATIONS.—All reductions described in paragraph (2) which 

are required to be made in connection with an order issued 

under section 254 with respect to a fiscal year 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. 

(5) DAIRY PROGRAM.—Notwithstanding any other provision 

of this subsection, as the sole means of achieving any reduction 

in outlays under the milk price support program, the Secretary 

of Agriculture shall provide for a reduction to be made in the 

price received by producers for all milk produced in the United 

States and marketed by producers for commercial use. That 

price reduction (measured in cents per hundred weight of milk 

marketed) shall occur under section 201(d)(2)(A) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin on the 

day any sequestration order is issued under section 254, and 

shall not exceed the aggregate amount of the reduction in outlays under the milk price support program that otherwise 

would have been achieved by reducing payments for the purchase of milk or the products of milk under this subsection 

during the applicable fiscal year. 

(6) CERTAIN AUTHORITY NOT TO BE LIMITED.—Nothing in 

this joint resolution shall limit or reduce, in any way, any appropriation that provides the Commodity Credit Corporation 

with budget authority to cover the Corporation’s net realized 

losses. 

(k) EFFECTS OF SEQUESTRATION.—The effects of sequestration 

shall be as follows: 
Sec. 257 DEFICIT CONTROL ACT OF 1985 116 

(1) Budgetary resources sequestered from any account 

shall be permanently cancelled, except as provided in paragraph (6). 

(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 the remaining amount of the appropriation being obligated in a manner consistent with program allocation formulas in substantive 

law. 

(4) Except as otherwise provided, obligations in sequestered accounts shall be reduced only in the fiscal year in which 

a sequester occurs. 

(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) Budgetary resources sequestered in revolving, trust, 

and special fund accounts and offsetting collections sequestered 

in appropriation accounts shall not be available for obligation 

during the fiscal year in which the sequestration occurs, but 

shall be available in subsequent years to the extent otherwise 

provided in law. 

SEC. 257. ø2 U.S.C. 907¿ THE BASELINE. 

(a) IN GENERAL.—For any budget year, the baseline refers to 

a projection of current-year levels of new budget authority, outlays, 

revenues, and the surplus or deficit into the budget year and the 

outyears based on laws enacted through the applicable date. 

(b) DIRECT SPENDING AND RECEIPTS.—For the budget year and 

each outyear, the baseline shall be calculated using the following 

assumptions: 

(1) IN GENERAL.—Laws providing or creating direct spending and receipts are assumed to operate in the manner specified in those laws for each such year and funding for entitlement authority is assumed to be adequate to make all payments required by those laws. 

(2) EXCEPTIONS.— 

(A)(i) No program established by a law enacted on or 

before the date of enactment of the Balanced Budget Act 

of 1997 with estimated current year outlays greater than 

$50,000,000 shall be assumed to expire in the budget year 

or the outyears. The scoring of new programs with estimated outlays greater than $50,000,000 a year shall be 

based on scoring by the Committees on Budget or OMB, as 
117 Sec. 257 DEFICIT CONTROL ACT OF 1985 

applicable. OMB, CBO, and the Budget Committees shall 

consult on the scoring of such programs where there are 

differenes between CBO and OMB. 

(ii) On the expiration of the suspension of a provision of law that is suspended under section 171 of 

Public Law 104–127 and that authorizes a program 

with estimated fiscal year outlays that are greater 

than $50,000,000, for purposes of clause (i), the program shall be assumed to continue to operate in the 

same manner as the program operated immediately 

before the expiration of the suspension. 

(B) The increase for veterans’ compensation for a fiscal 

year is assumed to be the same as that required by law 

for veterans’ pensions unless otherwise provided by law 

enacted in that session. 

(C) Excise taxes dedicated to a trust fund, if expiring, 

are assumed to be extended at current rates. 

(D) If any law expires before the budget year or any 

outyear, then any program with estimated current year 

outlays greater than $50,000,000 that operates under that 

law shall be assumed to continue to operate under that 

law as in effect immediately before its expiration. 

(3) HOSPITAL INSURANCE TRUST FUND.—Notwithstanding 

any other provision of law, the receipts and disbursements of 

the Hospital Insurance Trust Fund shall be included in all calculations required by this Act. 

(c) DISCRETIONARY APPROPRIATIONS.—For the budget year and 

each outyear, the baseline shall be calculated using the following 

assumptions regarding all amounts other than those covered by 

subsection (b): 

(1) INFLATION OF CURRENT-YEAR APPROPRIATIONS.—Budgetary resources other than unobligated balances shall be at the 

level provided for the budget year in full-year appropriation 

Acts. If for any account a full-year appropriation has not yet 

been enacted, budgetary resources other than unobligated balances shall be at the level available in the current year, adjusted sequentially and cumulatively for expiring housing contracts as specified in paragraph (2), for social insurance administrative expenses as specified in paragraph (3), to offset pay 

absorption and for pay annualization as specified in paragraph 

(4), for inflation as specified in paragraph (5), and to account 

for changes required by law in the level of agency payments for 

personnel benefits other than pay. 

(2) EXPIRING HOUSING CONTRACTS.—New budget authority 

to renew expiring multiyear subsidized housing contracts shall 

be adjusted to reflect the difference in the number of such contracts that are scheduled to expire in that fiscal year and the 

number expiring in the current year, with the per-contract renewal cost equal to the average current-year cost of renewal 

contracts. 

(3) SOCIAL INSURANCE ADMINISTRATIVE EXPENSES.—Budgetary resources for the administrative expenses of the following 

trust funds shall be adjusted by the percentage change in the 

beneficiary population from the current year to that fiscal year: 
Sec. 258 DEFICIT CONTROL ACT OF 1985 118 

60The Congressional Budget Office is not required to prepare a report under this section pursuant to section 104(b) of the Budget Control Act of 2011. 

the Federal Hospital Insurance Trust Fund, the Supplementary Medical Insurance Trust Fund, the Unemployment 

Trust Fund, and the railroad retirement account. 

(4) PAY ANNUALIZATION; OFFSET TO PAY ABSORPTION.—Current-year new budget authority for Federal employees shall be 

adjusted to reflect the full 12-month costs (without absorption) 

of any pay adjustment that occurred in that fiscal year. 

(5) INFLATORS.—The inflator used in paragraph (1) to adjust budgetary resources relating to personnel shall be the percent by which the average of the Bureau of Labor Statistics 

Employment Cost Index (wages and salaries, private industry 

workers) for that fiscal year differs from such index for the current year. The inflator used in paragraph (1) to adjust all other 

budgetary resources shall be the percent by which the average 

of the estimated gross domestic product chain-type price index 

for that fiscal year differs from the average of such estimated 

index for the current year. 

(6) CURRENT-YEAR APPROPRIATIONS.—If, for any account, a 

continuing appropriation is in effect for less than the entire 

current year, then the current-year amount shall be assumed 

to equal the amount that would be available if that continuing 

appropriation covered the entire fiscal year. If law permits the 

transfer of budget authority among budget accounts in the current year, the current-year level for an account shall reflect 

transfers accomplished by the submission of, or assumed for 

the current year in, the President’s original budget for the 

budget year. 

(d) UP-TO-DATE CONCEPTS.—In deriving the baseline for any 

budget year or outyear, current-year amounts shall be calculated 

using the concepts and definitions that are required for that budget 

year. 

(e) ASSET SALES.—Amounts realized from the sale of an asset 

shall not be included in estimates under section 251, 252, or 253 

if that sale would result in a financial cost to the Federal Government as determined pursuant to scorekeeping guidelines. 

SEC. 258. ø2 U.S.C. 907a¿ SUSPENSION IN THE EVENT OF WAR OR LOW 

GROWTH.60

(a) PROCEDURES IN THE EVENT OF A LOW GROWTH REPORT.— 

(1) TRIGGER.—Whenever CBO issues a low-growth report 

under section 254(j), the Majority Leader of the House of Representatives may, and the Majority Leader of the Senate shall, 

introduce a joint resolution (in the form set forth in paragraph 

(2)) declaring that the conditions specified in section 254(j) are 

met and suspending the relevant provisions of this title, titles 

III and VI of the Congressional Budget Act of 1974, and section 

1103 of title 31, United States Code. 

(2) FORM OF JOINT RESOLUTION.— 

(A) The matter after the resolving clause in any joint 

resolution introduced pursuant to paragraph (1) shall be 

as follows: ‘‘That the Congress declares that the conditions 

specified in section 254(j) of the Balanced Budget and 
119 Sec. 258 DEFICIT CONTROL ACT OF 1985 

Emergency Deficit Control Act of 1985 are met, and the 

implementation of the Congressional Budget and Impoundment Control Act of 1974, chapter 11 of title 31, United 

States Code, and part C of the Balanced Budget and Emergency Deficit Control Act of 1985 are modified as described 

in section 258(b) of the Balanced Budget and Emergency 

Deficit Control Act of 1985.’’. 

(B) The title of the joint resolution shall be ‘‘Joint resolution suspending certain provisions of law pursuant to 

section 258(a)(2) of the Balanced Budget and Emergency 

Deficit Control Act of 1985.’’; and the joint resolution shall 

not contain any preamble. 

(3) COMMITTEE ACTION.—Each joint resolution introduced 

pursuant to paragraph (1) shall be referred to the appropriate 

committees of the House of Representatives or the Committee 

on the Budget of the Senate, as the case may be; and such 

Committee shall report the joint resolution to its House without amendment on or before the fifth day on which such House 

is in session after the date on which the joint resolution is introduced. If the Committee fails to report the joint resolution 

within the five-day period referred to in the preceding sentence, it shall be automatically discharged from further consideration of the joint resolution, and the joint resolution shall be 

placed on the appropriate calendar. 

(4) CONSIDERATION OF JOINT RESOLUTION.— 

(A) A vote on final passage of a joint resolution reported to the Senate or discharged pursuant to paragraph 

(3) shall be taken on or before the close of the fifth calendar day of session after the date on which the joint resolution is reported or after the Committee has been discharged from further consideration of the joint resolution. 

If prior to the passage by one House of a joint resolution 

of that House, that House receives the same joint resolution from the other House, then— 

(i) the procedure in that House shall be the same 

as if no such joint resolution had been received from 

the other House, but 

(ii) the vote on final passage shall be on the joint 

resolution of the other House. 

When the joint resolution is agreed to, the Clerk of the 

House of Representatives (in the case of a House joint resolution agreed to in the House of Representatives) or the 

Secretary of the Senate (in the case of a Senate joint resolution agreed to in the Senate) shall cause the joint resolution to be engrossed, certified, and transmitted to the other 

House of the Congress as soon as practicable. 

(B)(i) In the Senate, a joint resolution under this paragraph shall be privileged. It shall not be in order to move 

to reconsider the vote by which the motion is agreed to or 

disagreed to. 

(ii) Debate in the Senate on a joint resolution 

under this paragraph, and all debatable motions and 

appeals in connection therewith, shall be limited to 

not more than five hours. The time shall be equally di-
Sec. 258A DEFICIT CONTROL ACT OF 1985 120 

vided between, and controlled by, the majority leader 

and the minority leader or their designees. 

(iii) Debate in the Senate on any debatable motion 

or appeal in connection with a joint resolution under 

this paragraph shall be limited to not more than one 

hour, to be equally divided between, and controlled by, 

the mover and the manager of the joint resolution, except that in the event the manager of the joint resolution is in favor of any such motion or appeal, the time 

in opposition thereto shall be controlled by the minority leader or his designee. 

(iv) A motion in the Senate to further limit debate 

on a joint resolution under this paragraph is not debatable. A motion to table or to recommit a joint resolution under this paragraph is not in order. 

(C) No amendment to a joint resolution considered 

under this paragraph shall be in order in the Senate. 

(b) SUSPENSION OF SEQUESTRATION PROCEDURES.—Upon the 

enactment of a declaration of war— 

(1) the subsequent issuance of any sequestration report or 

any sequestration order is precluded; 

(2) sections 302(f), 310(d), 311(a), and title VI of the Congressional Budget Act of 1974 are suspended; and 

(3) section 1103 of title 31, United States Code, is suspended. 

(c) RESTORATION OF SEQUESTRATION PROCEDURES.— 

(1) In the event of a suspension of sequestration procedures due to a declaration of war, then, effective with the first 

fiscal year that begins in the session after the state of war is 

concluded by Senate ratification of the necessary treaties, the 

provisions of subsection (b) triggered by that declaration of war 

are no longer effective. 

(2) In the event of a suspension of sequestration procedures due to the enactment of a joint resolution described in 

subsection (a), then, effective with regard to the first fiscal 

year beginning at least 12 months after the enactment of that 

resolution, the provisions of subsection (b) triggered by that 

resolution are no longer effective. 

SEC. 258A. ø2 U.S.C. 907b¿ MODIFICATION OF PRESIDENTIAL ORDER. 

(a) INTRODUCTION OF JOINT RESOLUTION.—At any time after 

the Director of OMB issues a final sequestration report under section 254 for a fiscal year, but before the close of the twentieth calendar day of the session of Congress beginning after the date of 

issuance of such report, the majority leader of either House of Congress may introduce a joint resolution which contains provisions directing the President to modify the most recent order issued under 

section 254 or provide an alternative to reduce the deficit for such 

fiscal year. After the introduction of the first such joint resolution 

in either House of Congress in any calendar year, then no other 

joint resolution introduced in such House in such calendar year 

shall be subject to the procedures set forth in this section. 

(b) PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTIONS.— 
121 Sec. 258A DEFICIT CONTROL ACT OF 1985 

(1) REFERRAL TO COMMITTEE.—A joint resolution introduced in the Senate under subsection (a) shall not be referred 

to a committee of the Senate and shall be placed on the calendar pending disposition of such joint resolution in accordance 

with this subsection. 

(2) CONSIDERATION IN THE SENATE.—On or after the third 

calendar day (excluding Saturdays, Sundays, and legal holidays) beginning after a joint resolution is introduced under 

subsection (a), notwithstanding any rule or precedent of the 

Senate, including Rule XXII of the Standing Rules of the Senate, it is in order (even though a previous motion to the same 

effect has been disagreed to) for any Member of the Senate to 

move to proceed to the consideration of the joint resolution. 

The motion is not in order after the eighth calendar day (excluding Saturdays, Sundays, and legal holidays) beginning 

after a joint resolution (to which the motion applies) is introduced. The joint resolution is privileged in the Senate. A motion to reconsider the vote by which the motion is agreed to or 

disagreed to shall not be in order. If a motion to proceed to the 

consideration of the joint resolution is agreed to, the Senate 

shall immediately proceed to consideration of the joint resolution without intervening motion, order, or other business, and 

the joint resolution shall remain the unfinished business of the 

Senate until disposed of. 

(3) DEBATE IN THE SENATE.— 

(A) In the Senate, debate on a joint resolution introduced under subsection (a), amendments thereto, and all 

debatable motions and appeals in connection therewith 

shall be limited to not more than 10 hours, which shall be 

divided equally between the majority leader and the minority leader (or their designees). 

(B) A motion to postpone, or a motion to proceed to the 

consideration of other business is not in order. A motion to 

reconsider the vote by which the joint resolution is agreed 

to or disagreed to is not in order, and a motion to recommit the joint resolution is not in order. 

(C)(i) No amendment that is not germane to the provisions of the joint resolution or to the order issued under 

section 254 shall be in order in the Senate. In the Senate, 

an amendment, any amendment to an amendment, or any 

debatable motion or appeal is debatable for not to exceed 

30 minutes to be equally divided between, and controlled 

by, the mover and the majority leader (or their designees), 

except that in the event that the majority leader favors the 

amendment, motion, or appeal, the minority leader (or the 

minority leader’s designee) shall control the time in opposition to the amendment, motion, or appeal. 

(ii) In the Senate, an amendment that is otherwise in order shall be in order notwithstanding the 

fact that it amends the joint resolution in more than 

one place or amends language previously amended. It 

shall not be in order in the Senate to vote on the question of agreeing to such a joint resolution or any 

amendment thereto unless the figures then contained 
Sec. 258A DEFICIT CONTROL ACT OF 1985 122 

in such joint resolution or amendment are mathematically consistent. 

(4) VOTE ON FINAL PASSAGE.—Immediately following the 

conclusion of the debate on a joint resolution introduced under 

subsection (a), a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, 

and the disposition of any pending amendments under paragraph (3), the vote on final passage of the joint resolution shall 

occur. 

(5) APPEALS.—Appeals from the decisions of the Chair 

shall be decided without debate. 

(6) CONFERENCE REPORTS.—In the Senate, points of order 

under titles III, IV, and VI of the Congressional Budget Act of 

1974 are applicable to a conference report on the joint resolution or any amendments in disagreement thereto. 

(7) RESOLUTION FROM OTHER HOUSE.—If, before the passage by the Senate of a joint resolution of the Senate introduced under subsection (a), the Senate receives from the House 

of Representatives a joint resolution introduced under subsection (a), then the following procedures shall apply: 

(A) The joint resolution of the House of Representatives shall not be referred to a committee and shall be 

placed on the calendar. 

(B) With respect to a joint resolution introduced under 

subsection (a) in the Senate— 

(i) the procedure in the Senate shall be the same 

as if no joint resolution had been received from the 

House; but 

(ii)(I) the vote on final passage shall be on the 

joint resolution of the House if it is identical to the 

joint resolution then pending for passage in the Senate; or 

(II) if the joint resolution from the House is not 

identical to the joint resolution then pending for passage in the Senate and the Senate then passes the 

Senate joint resolution, the Senate shall be considered 

to have passed the House joint resolution as amended 

by the text of the Senate joint resolution. 

(C) Upon disposition of the joint resolution received 

from the House, it shall no longer be in order to consider 

the resolution originated in the Senate. 

(8) SENATE ACTION ON HOUSE RESOLUTION.—If the Senate 

receives from the House of Representatives a joint resolution 

introduced under subsection (a) after the Senate has disposed 

of a Senate originated resolution which is identical to the 

House passed joint resolution, the action of the Senate with regard to the disposition of the Senate originated joint resolution 

shall be deemed to be the action of the Senate with regard to 

the House originated joint resolution. If it is not identical to 

the House passed joint resolution, then the Senate shall be 

considered to have passed the joint resolution of the House as 

amended by the text of the Senate joint resolution. 
123 Sec. 258B DEFICIT CONTROL ACT OF 1985 

SEC. 258B. ø2 U.S.C. 907c¿ FLEXIBILITY AMONG DEFENSE PROGRAMS, 

PROJECTS, AND ACTIVITIES. 

(a) Subject to subsections (b), (c), and (d), new budget authority 

and unobligated balances for any programs, projects, or activities 

within major functional category 050 (other than a military personnel account) may be further reduced beyond the amount specified in an order issued by the President under section 254 for such 

fiscal year. To the extent such additional reductions are made and 

result in additional outlay reductions, the President may provide 

for lesser reductions in new budget authority and unobligated balances for other programs, projects, or activities within major functional category 050 for such fiscal year, but only to the extent that 

the resulting outlay increases do not exceed the additional outlay 

reductions, and no such program, project, or activity may be increased above the level actually made available by law in appropriation Acts (before taking sequestration into account). In making 

calculations under this subsection, the President shall use account 

outlay rates that are identical to those used in the report by the 

Director of OMB under section 254. 

(b) No actions taken by the President under subsection (a) for 

a fiscal year may result in a domestic base closure or realignment 

that would otherwise be subject to section 2687 of title 10, United 

States Code. 

(c) The President may not exercise the authority provided by 

this paragraph for a fiscal year unless— 

(1) the President submits a single report to Congress specifying, for each account, the detailed changes proposed to be 

made for such fiscal year pursuant to this section; 

(2) that report is submitted within 5 calendar days of the 

start of the next session of Congress; and 

(3) a joint resolution affirming or modifying the changes 

proposed by the President pursuant to this paragraph becomes 

law. 

(d) Within 5 calendar days of session after the President submits a report to Congress under subsection (c)(1) for a fiscal year, 

the majority leader of each House of Congress shall (by request) introduce a joint resolution which contains provisions affirming the 

changes proposed by the President pursuant to this paragraph. 

(e)(1) The matter after the resolving clause in any joint resolution introduced pursuant to subsection (d) shall be as follows: ‘‘That 

the report of the President as submitted on [Insert Date] under section 258B is hereby approved.’’. 

(2) The title of the joint resolution shall be ‘‘Joint resolution approving the report of the President submitted under section 258B of the Balanced Budget and Emergency Deficit Control Act of 1985.’’. 

(3) Such joint resolution shall not contain any preamble. 

(f)(1) A joint resolution introduced in the Senate under subsection (d) shall be referred to the Committee on Appropriations, 

and if not reported within 5 calendar days (excluding Saturdays, 

Sundays, and legal holidays) from the date of introduction shall be 

considered as having been discharged therefrom and shall be 

placed on the appropriate calendar pending disposition of such joint 

resolution in accordance with this subsection. In the Senate, no 
Sec. 258B DEFICIT CONTROL ACT OF 1985 124 

amendment proposed in the Committee on Appropriations shall be 

in order other than an amendment (in the nature of a substitute) 

that is germane or relevant to the provisions of the joint resolution 

or to the order issued under section 254. For purposes of this paragraph, an amendment shall be considered to be relevant if it relates to function 050 (national defense). 

(2) On or after the third calendar day (excluding Saturdays, Sundays, and legal holidays) beginning after a joint resolution is placed on the Senate calendar, notwithstanding any 

rule or precedent of the Senate, including Rule XXII of the 

Standing Rules of the Senate, it is in order (even though a previous motion to the same effect has been disagreed to) for any 

Member of the Senate to move to proceed to the consideration 

of the joint resolution. The motion is not in order after the 

eighth calendar day (excluding Saturdays, Sundays, and legal 

holidays) beginning after such joint resolution is placed on the 

appropriate calendar. The motion is not debatable. The joint 

resolution is privileged in the Senate. A motion to reconsider 

the vote by which the motion is agreed to or disagreed to shall 

not be in order. If a motion to proceed to the consideration of 

the joint resolution is agreed to, the Senate shall immediately 

proceed to consideration of the joint resolution without intervening motion, order, or other business, and the joint resolution shall remain the unfinished business of the Senate until 

disposed of. 

(g)(1) In the Senate, debate on a joint resolution introduced 

under subsection (d), amendments thereto, and all debatable motions and appeals in connection therewith shall be limited to not 

more than 10 hours, which shall be divided equally between the 

majority leader and the minority leader (or their designees). 

(2) A motion to postpone, or a motion to proceed to the consideration of other business is not in order. A motion to reconsider the vote by which the joint resolution is agreed to or disagreed to is not in order. In the Senate, a motion to recommit 

the joint resolution is not in order. 

(h)(1) No amendment that is not germane or relevant to the 

provisions of the joint resolution or to the order issued under section 254 shall be in order in the Senate. For purposes of this paragraph, an amendment shall be considered to be relevant if it relates to function 050 (national defense). In the Senate, an amendment, any amendment to an amendment, or any debatable motion 

or appeal is debatable for not to exceed 30 minutes to be equally 

divided between, and controlled by, the mover and the majority 

leader (or their designees), except that in the event that the majority leader favors the amendment, motion, or appeal, the minority 

leader (or the minority leader’s designee) shall control the time in 

opposition to the amendment, motion, or appeal. 

(2) In the Senate, an amendment that is otherwise in order 

shall be in order notwithstanding the fact that it amends the 

joint resolution in more than one place or amends language 

previously amended, so long as the amendment makes or 

maintains mathematical consistency. It shall not be in order in 

the Senate to vote on the question of agreeing to such a joint 

resolution or any amendment thereto unless the figures then 
125 Sec. 258B DEFICIT CONTROL ACT OF 1985 

contained in such joint resolution or amendment are mathematically consistent. 

(3) It shall not be in order in the Senate to consider any 

amendment to any joint resolution introduced under subsection 

(d) or any conference report thereon if such amendment or conference report would have the effect of decreasing any specific 

budget outlay reductions below the level of such outlay reductions provided in such joint resolution unless such amendment 

or conference report makes a reduction in other specific budget 

outlays at least equivalent to any increase in outlays provided 

by such amendment or conference report. 

(4) For purposes of the application of paragraph (3), the 

level of outlays and specific budget outlay reductions provided 

in an amendment shall be determined on the basis of estimates 

made by the Committee on the Budget of the Senate. 

(i) Immediately following the conclusion of the debate on a 

joint resolution introduced under subsection (d), a single quorum 

call at the conclusion of the debate if requested in accordance with 

the rules of the Senate, and the disposition of any pending amendments under subsection (h), the vote on final passage of the joint 

resolution shall occur. 

(j) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a 

joint resolution described in subsection (d) shall be decided without 

debate. 

(k) In the Senate, points of order under titles III and IV of the 

Congressional Budget Act of 1974 (including points of order under 

sections 302(c), 303(a), 306, and 401(b)(1)) are applicable to a conference report on the joint resolution or any amendments in disagreement thereto. 

(l) If, before the passage by the Senate of a joint resolution of 

the Senate introduced under subsection (d), the Senate receives 

from the House of Representatives a joint resolution introduced 

under subsection (d), then the following procedures shall apply: 

(1) The joint resolution of the House of Representatives 

shall not be referred to a committee. 

(2) With respect to a joint resolution introduced under subsection (d) in the Senate— 

(A) the procedure in the Senate shall be the same as 

if no joint resolution had been received from the House; 

but 

(B)(i) the vote on final passage shall be on the joint 

resolution of the House if it is identical to the joint resolution then pending for passage in the Senate; or 

(ii) if the joint resolution from the House is not 

identical to the joint resolution then pending for passage in the Senate and the Senate then passes the 

Senate joint resolution, the Senate shall be considered 

to have passed the House joint resolution as amended 

by the text of the Senate joint resolution. 

(3) Upon disposition of the joint resolution received from 

the House, it shall no longer be in order to consider the joint 

resolution originated in the Senate. 
Sec. 258C DEFICIT CONTROL ACT OF 1985 126 

(m) If the Senate receives from the House of Representatives 

a joint resolution introduced under subsection (d) after the Senate 

has disposed of a Senate originated joint resolution which is identical to the House passed joint resolution, the action of the Senate 

with regard to the disposition of the Senate originated joint resolution shall be deemed to be the action of the Senate with regard to 

the House originated joint resolution. If it is not identical to the 

House passed joint resolution, then the Senate shall be considered 

to have passed the joint resolution of the House as amended by the 

text of the Senate joint resolution. 

SEC. 258C. ø2 U.S.C. 907d¿ SPECIAL RECONCILIATION PROCESS. 

(a) REPORTING OF RESOLUTIONS AND RECONCILIATION BILLS

AND RESOLUTIONS, IN THE SENATE.— 

(1) COMMITTEE ALTERNATIVES TO PRESIDENTIAL ORDER.— 

After the submission of an OMB sequestration update report 

under section 254 that envisions a sequestration under section 

252 or 253, each standing committee of the Senate may, not 

later than October 10, submit to the Committee on the Budget 

of the Senate information of the type described in section 

301(d) of the Congressional Budget Act of 1974 with respect to 

alternatives to the order envisioned by such report insofar as 

such order affects laws within the jurisdiction of the committee. 

(2) INITIAL BUDGET COMMITTEE ACTION.—After the submission of such a report, the Committee on the Budget of the Senate may, not later than October 15, report to the Senate a resolution. The resolution may affirm the impact of the order envisioned by such report, in whole or in part. To the extent that 

any part is not affirmed, the resolution shall state which parts 

are not affirmed and shall contain instructions to committees 

of the Senate of the type referred to in section 310(a) of the 

Congressional Budget Act of 1974, sufficient to achieve at least 

the total level of deficit reduction contained in those sections 

which are not affirmed. 

(3) RESPONSE OF COMMITTEES.—Committees instructed 

pursuant to paragraph (2), or affected thereby, shall submit 

their responses to the Budget Committee no later than 10 days 

after the resolution referred to in paragraph (2) is agreed to, 

except that if only one such Committee is so instructed such 

Committee shall, by the same date, report to the Senate a reconciliation bill or reconciliation resolution containing its recommendations in response to such instructions. A committee 

shall be considered to have complied with all instructions to it 

pursuant to a resolution adopted under paragraph (2) if it has 

made recommendations with respect to matters within its jurisdiction which would result in a reduction in the deficit at 

least equal to the total reduction directed by such instructions. 

(4) BUDGET COMMITTEE ACTION.—Upon receipt of the recommendations received in response to a resolution referred to 

in paragraph (2), the Budget Committee shall report to the 

Senate a reconciliation bill or reconciliation resolution, or both, 

carrying out all such recommendations without any substantive revisions. In the event that a committee instructed in 
127 Sec. 258C DEFICIT CONTROL ACT OF 1985 

a resolution referred to in paragraph (2) fails to submit any 

recommendation (or, when only one committee is instructed, 

fails to report a reconciliation bill or resolution) in response to 

such instructions, the Budget Committee shall include in the 

reconciliation bill or reconciliation resolution reported pursuant 

to this subparagraph legislative language within the jurisdiction of the noncomplying committee to achieve the amount of 

deficit reduction directed in such instructions. 

(5) POINT OF ORDER.—It shall not be in order in the Senate 

to consider any reconciliation bill or reconciliation resolution 

reported under paragraph (4) with respect to a fiscal year, any 

amendment thereto, or any conference report thereon if— 

(A) the enactment of such bill or resolution as reported; 

(B) the adoption and enactment of such amendment; 

or 

(C) the enactment of such bill or resolution in the form 

recommended in such conference report, 

would cause the amount of the deficit for such fiscal year to exceed the maximum deficit amount for such fiscal year, unless 

the low-growth report submitted under section 254 projects 

negative real economic growth for such fiscal year, or for each 

of any two consecutive quarters during such fiscal year. 

(6) TREATMENT OF CERTAIN AMENDMENTS.—In the Senate, 

an amendment which adds to a resolution reported under paragraph (2) an instruction of the type referred to in such paragraph shall be in order during the consideration of such resolution if such amendment would be in order but for the fact that 

it would be held to be non-germane on the basis that the instruction constitutes new matter. 

(7) DEFINITION.—For purposes of paragraphs (1), (2), and 

(3), the term ‘‘day’’ shall mean any calendar day on which the 

Senate is in session. 

(b) PROCEDURES.— (1) IN GENERAL.—Except as provided in paragraph (2), in 

the Senate the provisions of sections 305 and 310 of the Congressional Budget Act of 1974 for the consideration of concurrent resolutions on the budget and conference reports thereon 

shall also apply to the consideration of resolutions, and reconciliation bills and reconciliation resolutions reported under 

this paragraph and conference reports thereon. 

(2) LIMIT ON DEBATE.—Debate in the Senate on any resolution reported pursuant to subsection (a)(2), and all amendments thereto and debatable motions and appeals in connection therewith, shall be limited to 10 hours. 

(3) LIMITATION ON AMENDMENTS.—Section 310(d)(2) of the 

Congressional Budget Act shall apply to reconciliation bills and 

reconciliation resolutions reported under this subsection. 

(4) BILLS AND RESOLUTIONS RECEIVED FROM THE HOUSE.— 

Any bill or resolution received in the Senate from the House, 

which is a companion to a reconciliation bill or reconciliation 

resolution of the Senate for the purposes of this subsection, 

shall be considered in the Senate pursuant to the provisions of 

this subsection. 
Sec. 274 DEFICIT CONTROL ACT OF 1985 128 

61Section 13301 of the Budget Enforcement Act of 1990 amended the language in this section 

as enacted. 62Section, Public Law 99-177, title II, Sec. 273, Dec. 12, 1985, 99 Stat. 1098, which related 

to revenue estimates, was redesignated as Section 201(g) of Pub. L. 93-344 by section 13202(b) 

of Public Law 101–508 and is classified to section 601(f) of this title. Section 13202(b) of the 

Budget Enforcement Act of 1990 transferred the text of what used to be section 273 of the Balanced Budget and Emergency Deficit Control Act of 1985 to section 301 of the Congressional 

Budget Act of 1974. Before enactment of the Budget Control Act of 1990, section 273 read as 

follows: 

For the purposes of revenue legislation which is income, estate and gift, excise, and payroll taxes (i.e. Social Security), considered or enacted in any session of Congress, the 

Congressional Budget Office shall use exclusively during that session of Congress revenue estimates provided to it by the Joint Committee on Taxation. During that session 

of Congress such revenue estimates shall be transmitted by the Congressional Budget 

Office to any committee of the House of Representatives or the Senate requesting such 

estimates, and shall be used by such Committees in determining such estimates. The 

Budget Committees of the Senate and the House shall determine all estimates with respect to scoring points of order and with respect to the purposes of this Act. 

(5) DEFINITION.—For purposes of this subsection, the term 

‘‘resolution’’ means a simple, joint, or concurrent resolution. 

PART D—BUDGETARY TREATMENT OF 

SOCIAL SECURITY 

SEC 261. TREATMENT OF TRUST FUNDS.61

[Omitted] 

PART E—MISCELLANEOUS AND RELATED PROVISIONS 

SEC. 271. WAIVERS AND SUSPENSIONS; RULEMAKING POWERS. 

[Omitted] 

SEC. 272. RESTORATION OF TRUST FUND INVESTMENTS. 

[Omitted] 

SEC. 273. ø2 U.S.C. 922] REVENUE ESTIMATES. 

[Transferred]62

SEC. 274. ø2 U.S.C. 922¿ JUDICIAL REVIEW. 

(a) EXPEDITED REVIEW.— 

(1) Any Member of Congress may bring an action, in the 

United States District Court for the District of Columbia, for 

declaratory judgment and injunctive relief on the ground that 

any order that might be issued pursuant to section 254 violates 

the Constitution. 

(2) Any Member of Congress, or any other person adversely affected by any action taken under this title, may bring 

an action, in the United States District Court for the District 

of Columbia, for declaratory judgment and injunctive relief 

concerning the constitutionality of this title. 

(3) Any Member of Congress may bring an action, in the 

United States District Court for the District of Columbia, for 

declaratory and injunctive relief on the ground that the terms 

of an order issued under section 254 do not comply with the 

requirements of this title. 

(4) A copy of any complaint in an action brought under 

paragraph (1), (2), or (3) shall be promptly delivered to the Secretary of the Senate and the Clerk of the House of Representatives, and each House of Congress shall have the right to intervene in such action. 
129 Sec. 274 DEFICIT CONTROL ACT OF 1985 

(5) Any action brought under paragraph (1), (2), or (3) 

shall be heard and determined by a three-judge court in accordance with section 2284 of title 28, United States Code. 

Nothing in this section or in any other law shall infringe upon the 

right of the House of Representatives to intervene in an action 

brought under paragraph (1), (2), or (3) without the necessity of 

adopting a resolution to authorize such intervention. 

(b) APPEAL TO SUPREME COURT.—Notwithstanding any other 

provision of law, any order of the United States District Court for 

the District of Columbia which is issued pursuant to an action 

brought under paragraph (1), (2), or (3) of subsection (a) shall be 

reviewable by appeal directly to the Supreme Court of the United 

States. Any such appeal shall be taken by a notice of appeal filed 

within 10 days after such order is entered; and the jurisdictional 

statement shall be filed within 30 days after such order is entered. 

No stay of an order issued pursuant to an action brought under 

paragraph (1), (2), or (3) of subsection (a) shall be issued by a single Justice of the Supreme Court. 

(c) EXPEDITED CONSIDERATION.—It shall be the duty of the District Court for the District of Columbia and the Supreme Court of 

the United States to advance on the docket and to expedite to the 

greatest possible extent the disposition of any matter brought 

under subsection (a). 

(d) NONCOMPLIANCE WITH SEQUESTRATION PROCEDURES.— 

(1) If it is finally determined by a court of competent jurisdiction that an order issued by the President under section 254 

for any fiscal year— 

(A) does not reduce automatic spending increases 

under any program specified in section 256(a) if such increases are required to be reduced by part C of this title 

(or reduces such increases by a greater extent than is so 

required), or 

(B) does not sequester the amount of budgetary resources which is required to be sequestered by such part 

(or sequesters more than that amount) with respect to any 

program, project, activity, or account, 

the President shall, within 20 days after such determination is 

made, revise the order in accordance with such determination. 

(2) If the order issued by the President under section 254 

for any fiscal year— 

(A) does not reduce any automatic spending increase 

to the extent that such increase is required to be reduced 

by part C of this title, 

(B) does not sequester any amount of new budget authority, new loan guarantee commitments, new direct loan 

obligations, or spending authority which is required to be 

sequestered by such part, or 

(C) does not reduce any obligation limitation by the 

amount by which such limitation is required to be reduced 

under such part, 

on the claim or defense that the constitutional powers of the 

President prevent such sequestration or reduction or permit 

the avoidance of such sequestration or reduction, and such 

claim or defense is finally determined by the Supreme Court 
Sec. 274 DEFICIT CONTROL ACT OF 1985 130 

63Section 104(a) of the Budget Control Act of 2011 (Public Law 112–25) repealed Section 275 

of this Act which had the effect of making the Balanced Budget and Emergency Deficit Control 

Act of 1985 permanent. 

of the United States to be valid, then the entire order issued 

pursuant to section 254 for such fiscal year shall be null and 

void. 

(e) TIMING OF RELIEF.—No order of any court granting declaratory or injunctive relief from the order of the President issued 

under section 254, including but not limited to relief permitting or 

requiring the expenditure of funds sequestered by such order, shall 

take effect during the pendency of the action before such court, 

during the time appeal may be taken, or, if appeal is taken, during 

the period before the court to which such appeal is taken has entered its final order disposing of such action. 

(f) PRESERVATION OF OTHER RIGHTS.—The rights created by 

this section are in addition to the rights of any person under law, 

subject to subsection (e). 

(g) ECONOMIC DATA, ASSUMPTIONS, AND METHODOLOGIES.—The 

economic data and economic assumptions used by the Director of 

OMB in computing the figures specified in any report issued by the 

Director of OMB under section 254, shall not be subject to review 

in any judicial or administrative proceeding. 

SEC. 275. ø2 U.S.C. 900 note¿ EFFECTIVE DATES.63

[Repealed] 
131 

BUDGET ENFORCEMENT ACT OF 1990 

133 

BUDGET ENFORCEMENT ACT OF 1990 

Public Law 101–508, Nov. 5, 1990, 104 Stat. 1388–573, 1388–623 

[As Amended Through Public Law 102–590, 

Enacted November 10, 1992] 

TITLE XIII—BUDGET ENFORCEMENT 

SEC. 13001. SHORT TITLE; TABLE OF CONTENTS 

[Omitted] 

Subtitle A—Amendments to the Balanced 

Budget and Emergency Deficit Control 

Act of 1985 and Related Amendments 

PART I—AMENDMENTS TO THE BALANCED BUDGET 

AND EMERGENCY DEFICIT CONTROL ACT OF 1985 

SEC. 13101. SEQUESTRATION 

[Omitted] 

PART II—RELATED AMENDMENTS 

SEC. 13111. TEMPORARY AMENDMENTS TO THE CONGRESSIONAL 

BUDGET ACT OF 1974 

[Omitted] 

SEC. 13112. CONFORMING AMENDMENTS 

[Omitted] 

Subtitle B—Permanent Amendments to the 

Congressional Budget and Impoundment 

Control Act of 1974 

SEC. 13201. CREDIT ACCOUNTING 

[Omitted] 

SEC. 13202. CODIFICATION OF PROVISION REGARDING REVENUE ESTIMATES. 

[Omitted] 

SEC. 13203. DEBT INCREASE AS MEASURE OF DEFICIT; DISPLAY OF 

FEDERAL RETIRMENT TRUST FUND BALANCE. 

[Omitted] 

SEC. 13204. PAY-AS-YOU-GO PROCEDURES. 

[Omitted] 
Sec. 13301 BUDGET ENFORCEMENT ACT OF 1990 134 

SEC. 13205. AMENDMENTS TO SECTION 303. 

[Omitted] 

SEC. 13206. AMENDMENTS TO SECTION 308. 

[Omitted] 

SEC. 13207. STANDARIZATION OF LANGUAGE REGARDING POINTS OF 

ORDER. 

[Omitted] 

SEC. 13208. STANDARIZATION ADDITIONAL DEFICIT CONTROL PROVISIONS. 

[Omitted] 

SEC. 13209. CODIFICATION OF PRECEDENT WITH REGARD TO CONFERENCE REPORTS AND AMENDMENTS BETWEEN THE 

HOUSES. 

[Omitted] 

SEC. 13210. SUPERSEDED DEADLINES AND CONFORMING CHANGES. 

[Omitted] 

SEC. 13211. DEFINITIONS. 

[Omitted] 

SEC. 13212. SAVINGS TRANSFERS BETWEEN FISCAL YEARS. 

[Omitted] 

SEC. 13213. CONFORMING CHANGE TO TITLE 31. 

[Omitted] 

SEC. 13214. THE BYRD RULE ON EXTRANEOUS MATTER IN RECONCILIATION. 

[Omitted] 

Subtitle C—Social Security 

SEC. 13301. OFF-BUDGET STATUS OF OASDI TRUST FUNDS. 

(a) EXCLUSION OF SOCIAL SECURITY FROM ALL BUDGETS.—Notwithstanding any other provision of law, the receipts and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund 

and the Federal Disability Insurance Trust Fund shall not be 

counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of— 

(1) the budget of the United States Government as submitted by the President, 

(2) the congressional budget, or 

(3) the Balanced Budget and Emergency Deficit Control 

Act of 1985. 

(b) EXCLUSION OF SOCIAL SECURITY FROM CONGRESSIONAL

BUDGET.—Section 301(a) of the Congressional Budget Act of 1974 

is amended by adding at the end the following: ‘‘The concurrent 

resolution shall not include the outlays and revenue totals of the 

old age, survivors, and disability insurance program established 

under title II of the Social Security Act or the related provisions 

of the Internal Revenue Code of 1986 in the surplus or deficit totals 

required by this subsection or in any other surplus or deficit totals 

required by this title.’’. 
135 Sec. 13302 BUDGET ENFORCEMENT ACT OF 1990 

SEC. 13302. PROTECTION OF OASDI TRUST FUNDS IN THE HOUSE OF 

REPRESENTATIVES. 

(a) IN GENERAL.—It shall not be in order in the House of Representatives to consider any bill or joint resolution, as reported, or 

any amendment thereto or conference report thereon, if, upon enactment— 

(1)(A) such legislation under consideration would provide 

for a net increase in OASDI benefits of at least 0.02 percent 

of the present value of future taxable payroll for the 75-year 

period utilized in the most recent annual report of the Board 

of Trustees provided pursuant to section 201(c)(2) of the Social 

Security Act, and 

(B) such legislation under consideration does not provide at least a net increase, for such 75-year period, in 

OASDI taxes of the amount by which the net increase in 

such benefits exceeds 0.02 percent of the present value of 

future taxable payroll for such 75-year period, 

(2)(A) such legislation under consideration would provide 

for a net increase in OASDI benefits (for the 5-year estimating 

period for such legislation under consideration), 

(B) such net increase, together with the net increases 

in OASDI benefits resulting from previous legislation enacted during that fiscal year or any of the previous 4 fiscal 

years (as estimated at the time of enactment) which are 

attributable to those portions of the 5-year estimating periods for such previous legislation that fall within the 5-year 

estimating period for such legislation under consideration, 

exceeds $250,000,000, and 

(C) such legislation under consideration does not provide at least a net increase, for the 5-year estimating period for such legislation under consideration, in OASDI 

taxes which, together with net increases in OASDI taxes 

resulting from such previous legislation which are attributable to those portions of the 5-year estimating periods 

for such previous legislation that fall within the 5-year estimating period for such legislation under consideration, 

equals the amount by which the net increase derived 

under subparagraph (B) exceeds $250,000,000; 

(3)(A) such legislation under consideration would provide 

for a net decrease in OASDI taxes of at least 0.02 percent of 

the present value of future taxable payroll for the 75-year period utilized in the most recent annual report of the Board of 

Trustees provided pursuant to section 201(c)(2) of the Social 

Security Act, and 

(B) such legislation under consideration does not provide at least a net decrease, for such 75-year period, in 

OASDI benefits of the amount by which the net decrease 

in such taxes exceeds 0.02 percent of the present value of 

future taxable payroll for such 75-year period, or 

(4)(A) such legislation under consideration would provide 

for a net decrease in OASDI taxes (for the 5-year estimating 

period for such legislation under consideration), 

(B) such net decrease, together with the net decreases 

in OASDI taxes resulting from previous legislation enacted 
Sec. 13303 BUDGET ENFORCEMENT ACT OF 1990 136 

during that fiscal year or any of the previous 4 fiscal years 

(as estimated at the time of enactment) which are attributable to those portions of the 5-year estimating periods 

for such previous legislation that fall within the 5-year estimating period for such legislation under consideration, 

exceeds $250,000,000, and 

(C) such legislation under consideration does not provide at least a net decrease, for the 5-year estimating period for such legislation under consideration, in OASDI 

benefits which, together with net decreases in OASDI benefits resulting from such previous legislation which are attributable to those portions of the 5-year estimating periods for such previous legislation that fall within the 5-year 

estimating period for such legislation under consideration, 

equals the amount by which the net decrease derived 

under subparagraph (B) exceeds $250,000,000. 

(b) APPLICATION.—In applying paragraph (3) or (4) of subsection (a), any provision of any bill or joint resolution, as reported, 

or any amendment thereto, or conference report thereon, the effect 

of which is to provide for a net decrease for any period in taxes described in subsection (c)(2)(A) shall be disregarded if such bill, joint 

resolution, amendment, or conference report also includes a provision the effect of which is to provide for a net increase of at least 

an equivalent amount for such period in medicare taxes. 

(c) DEFINITIONS.—For purposes of this subsection: 

(1) The term ‘‘OASDI benefits’’ means the benefits under 

the old-age, survivors, and disability insurance programs under 

title II of the Social Security Act. 

(2) The term ‘‘OASDI taxes’’ means— 

(A) the taxes imposed under sections 1401(a), 3101(a), 

and 3111(a) of the Internal Revenue Code of 1986, and 

(B) the taxes imposed under chapter 1 of such Code (to 

the extent attributable to section 86 of such Code). 

(3) The term ‘‘medicare taxes’’ means the taxes imposed 

under sections 1401(b), 3101(b), and 3111(b) of the Internal 

Revenue Code of 1986. 

(4) The term ‘‘previous legislation’’ shall not include legislation enacted before fiscal year 1991. 

(5) The term ‘‘5-year estimating period’’ means, with respect to any legislation, the fiscal year in which such legislation becomes or would become effective and the next 4 fiscal 

years. 

(6) No provision of any bill or resolution, or any amendment thereto or conference report thereon, involving a change 

in chapter 1 of the Internal Revenue Code of 1986 shall be 

treated as affecting the amount of OASDI taxes referred to in 

paragraph (2)(B) unless such provision changes the income tax 

treatment of OASDI benefits. 

SEC. 13303. SOCIAL SECURITY FIREWALL AND POINT OF ORDER IN 

THE SENATE. 

[Omitted] 
137 Sec. 13501 BUDGET ENFORCEMENT ACT OF 1990 

SEC. 13304. REPORT TO THE CONGRESS BY THE BOARD OF TRUSTEES 

OF THE OASDI TRUST FUNDS REGARDING THE ACTUARIAL BALANCE OF TRUST FUNDS. 

[Omitted] 

SEC. 13305. EXERCISE OF RULEMAKING POWER. 

This title and the amendments made by it are enacted by the 

Congress— 

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

Representatives and the Senate, respectively, and as such they 

shall be considered as a part of the rules of each House, respectively, or of that House to which they specifically apply, and 

such rules shall supersede other rules only to the extent that 

they are inconsistent therewith; and 

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

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

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

in the case of any other rule of such House. 

SEC. 13306. EFFECTIVE DATE. 

Sections 13301, 13302, and 13303 and any amendments made 

by such sections shall apply with respect to fiscal years beginning 

on or after October 1, 1990. Section 13304 shall be effective for annual reports of the Board of Trustees issued in or after calendar 

year 1991. 

Subtitle D—Treatment of Fiscal Year 1991 

Sequestration 

[Omitted] 

Subtitle E—Government-Sponsored 

Enterprises 

SEC. 13501. FINANCIAL SAFETY AND SOUNDNESS OF GOVERNMENTSPONSORED ENTERPRISES. 

(a) DEFINITION.—For purposes of this section, the terms ‘‘Government-sponsored enterprise’’ and ‘‘GSE’’ mean the Farm Credit 

System (including the Farm Credit Banks, Banks for Cooperatives, 

and Federal Agricultural Mortgage Corporation), the Federal Home 

Loan Bank System, the Federal Home Loan Mortgage Corporation, 

the Federal National Mortgage Association, and the Student Loan 

Marketing Association. 

(c) TREASURY DEPARTMENT STUDY AND PROPOSED LEGISLATION. [Omitted] 

(d) CONGRESSIONAL BUDGET OFFICE STUDY. [Omitted] 

(d) ACCESS TO RELEVANT INFORMATION.— 

(1) For the studies required by this section, each GSE shall 

provide full and prompt access to the Secretary of the Treasury 

and the Director of the Congressional Budget Office to its 

books and records and other information requested by the Secretary of the Treasury or the Director of the Congressional 

Budget Office. 
Sec. 13501 BUDGET ENFORCEMENT ACT OF 1990 138 

(2) In preparing the studies required by this section, the 

Secretary of the Treasury and the Director of the Congressional Budget Office may request information from, or the assistance of, any Federal department or agency authorized by 

law to supervise the activities of a GSE. 

(e) CONFIDENTIALITY OF RELEVANT INFORMATION.— (1) The Secretary of the Treasury and the Director of the 

Congressional Budget Office shall determine and maintain the 

confidentiality of any book, record, or information made available by a GSE under this section in a manner consistent with 

the level of confidentiality established for the material by the 

GSE involved. 

(2) The Department of the Treasury shall be exempt from 

section 552 of title 5, United States Code, for any book, record, 

or information made available under subsection (d) and determined by the Secretary of the Treasury to be confidential 

under this subsection. 

(3) Any officer or employee of the Department of the Treasury shall be subject to the penalties set forth in section 1906 

of title 18, United States Code, if— 

(A) by virtue of his or her employment or official position, he or she has possession of or access to any book, 

record, or information made available under and determined to be confidential under this section; and 

(B) he or she discloses the material in any manner 

other than— 

(i) to an officer or employee of the Department of 

the Treasury; or 

(ii) pursuant to the exception set forth in such section 1906. 

(4) The Congressional Budget Office shall be exempt from 

section 203 of the Congressional Budget Act of 1974 with respect to any book, record, or information made available under 

this subsection and determined by the Director to be confidential under paragraph (1). 

(f) PRESIDENT’S BUDGET.—The President’s annual budget submission shall include an analysis of the financial condition of the 

GSEs and the financial exposure of the Government, if any, posed 

by GSEs. 
139 

POSTAL SERVICE 

OMNIBUS BUDGET RECONCILIATION ACT OF 1989 

Public Law 101–239, Title IV, §4001(A)(1), 

DEC. 19, 1989 103 STAT. 2133 

POSTAL ACCOUNTABILITY AND ENHANCEMENT ACT 

Public Law 109–435, Title IV, Sec. 401(a)(1), 

Dec. 20, 2006, 120 Stat. 3221 

141 

Title IV—Civil Service and 

Postal Service Programs 

SEC. 4001. BUDGETARY TREATMENT OF THE POSTAL SERVICE FUND. 

(a) TREATMENT OF THE POSTAL SERVICE FUND— 

(1) In general—Chapter 20 of title 39, United States Code, 

is amended by inserting after section 2009 the following: 

‘‘SEC. 2009A. BUDGETARY TREATMENT OF THE POSTAL SERVICE FUND

‘‘Notwithstanding any other provision of law, the receipts 

and disbursements of the Postal Service Fund, including disbursements for administrative expenses incurred in connection 

with the Fund— 

‘‘(1) shall not be included in the totals of— 

‘‘(A) the budget of the United States Government 

as submitted by the President, or 

‘‘(B) the congressional budget (including allocations of budget authority and outlays provided therein); 

‘‘(2) shall be exempt from any general budget limitation imposed by statute on expenditures and net lending 

(budget outlays) of the United States Government; and 

‘‘(3) shall be exempt from any order issued under part 

C of the Balanced Budget and Emergency Deficit Control 

Act of 1985, and shall not be counted for purposes of calculating the deficit under section 3(6) of the Congressional 

Budget and Impoundment Control Act of 1974 for purposes 

of comparison with the maximum deficit amount under the 

Balanced Budget and Emergency Deficit Control Act of 

1985 nor counted in calculating the excess deficit for purposes of sections 251 and 252 of the Balanced Budget and 

Emergency Deficit Control Act of 1985, for any fiscal 

year.’’. 

(2) Chapter analysis—The analysis for chapter 20 of title 39, 

United States Code, is amended by inserting after the item relating 

to section 2009 the following: 

‘‘2009a. Budgetary treatment of the Postal Service Fund.’’ 

(b) CONSTRUCTION—Nothing in any amendment made by subsection (a) shall be considered to diminish the oversight responsibilities or authority of the Congress under law, rule, or regulation 

with respect to the budget and operations of the United States 

Postal Service. 

(c) APPLICABILITY—The amendments made by this section shall 

apply with respect to budgets for fiscal years beginning after September 30, 1989. 
Sec. 4001 POSTAL SERVICE 142 

64See page 293. 

(Added Pub. L. 101–239, title IV, §4001(a)(1), Dec. 19, 1989, 

103 Stat. 2133.) 

* * * * * * * 

[From Public Law 109–435: The Postal Accountability and 

Enhancement Act] 

SEC. 401. POSTAL SERVICE COMPETITIVE PRODUCTS FUND. 

(a) PROVISIONS RELATING TO POSTAL SERVICE COMPETITIVE

PRODUCTS FUND AND RELATED MATTERS— (1) IN GENERAL. Chapter 20 of title 39, United States 

Code, is amended by adding at the end the following: 

‘‘SEC. 2011. PROVISIONS RELATING TO COMPETITIVE PROD- UCTS

‘‘(f) The receipts and disbursements of the Competitive 

Products Fund shall be accorded the same budgetary treatment as is accorded to receipts and disbursements of the 

Postal Service Fund under section 2009a.’’ 64
143 

STATUTORY PAY–AS–YOU–GO ACT OF 2010 

145 

65 2 U.S.C. 622. 66 2 U.S.C. 900. 67 2 U.S.C. 900(c)(8)(C). 

STATUTORY PAY–AS–YOU–GO ACT OF 2010 

[Public Law 111–139; Enacted February 12, 2010; 124 Stat. 8] 

JOINT RESOLUTION Increasing the statutory limit on the public debt. 

Resolved by the Senate and House of Representatives of the

United States of America in Congress assembled, That subsection 

(b) of section 3101 of title 31, United States Code, is amended by 

striking out the dollar limitation contained in such subsection and 

inserting in lieu thereof $14,294,000,000,000. 

Title I—Statutory Pay-As-You-Go 

Act of 2010 

SEC. 1. ø2 U.S.C. 931 note¿ SHORT TITLE. 

This title may be cited as the ‘‘Statutory Pay-As-You-Go Act of 

2010’’. 

SEC. 2. ø2 U.S.C. 931¿ PURPOSE. 

The purpose of this title is to reestablish a statutory procedure 

to enforce a rule of budget neutrality on new revenue and direct 

spending legislation. 

SEC. 3. ø2 U.S.C. 932¿ DEFINITIONS AND APPLICATIONS. 

As used in this title— 

(1) The term ‘‘BBEDCA’’ means the Balanced Budget and 

Emergency Deficit Control Act of 1985. 

(2) The definitions set forth in section 3 65 of the Congressional Budget and Impoundment Control Act of 1974 and in 

section 250 of BBEDCA 66 shall apply to this title, except to the 

extent that they are specifically modified as follows: 

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

more years after the budget year. 

(B) In section 250(c)(8)(C), 67 the reference to the food 

stamp program shall be deemed to be a reference to the 

Supplemental Nutrition Assistance Program. 

(3) The term ‘‘AMT’’ means the Alternative Minimum Tax 

for individuals under sections 55–59 of the Internal Revenue 

Code of 1986, 26 U.S.C. 55–59, the term ‘‘EGTRRA’’ means the 

Economic Growth and Tax Relief Reconciliation Act of 2001 

(Public Law 107–16), and the term ‘‘JGTRRA’’ means the Jobs 

and Growth Tax Relief and Reconciliation Act of 2003 (Public 

Law 108–27). 
Sec. 4 STATUTORY PAY–AS–YOU–GO ACT OF 2010 146 

(4)(A) The term ‘‘budgetary effects’’ means the amount by 

which PAYGO legislation changes outlays flowing from direct 

spending or revenues relative to the baseline and shall be determined on the basis of estimates prepared under section 4. 

Budgetary effects that increase outlays flowing from direct 

spending or decrease revenues are termed ‘‘costs’’ and budgetary effects that increase revenues or decrease outlays flowing 

from direct spending are termed ‘‘savings’’. Budgetary effects 

shall not include any costs associated with debt service. 

(B) For purposes of these definitions, off-budget effects 

shall not be counted as budgetary effects. 

(C) Solely for purposes of recording entries on a 

PAYGO scorecard, provisions in appropriation Acts are 

also considered to be budgetary effects for purposes of this 

title if such provisions make outyear modifications to substantive law, except that provisions for which the outlay 

effects net to zero over a period consisting of the current 

year, the budget year, and the 4 subsequent years shall 

not be considered budgetary effects. For purposes of this 

paragraph, the term, ‘‘modifications to substantive law’’ refers to changes to or restrictions on entitlement law or 

other mandatory spending contained in appropriations 

Acts, notwithstanding section 250(c)(8) of BBEDCA. Provisions in appropriations Acts that are neither outyear modifications to substantive law nor changes in revenues have 

no budgetary effects for purposes of this title. 

(5) The term ‘‘debit’’ refers to the net total amount, when 

positive, by which costs recorded on the PAYGO scorecards for 

a fiscal year exceed savings recorded on those scorecards for 

that year. 

(6) The term ‘‘entitlement law’’ refers to a section of law 

which provides entitlement authority. 

(7) The term ‘‘PAYGO legislation’’ or a ‘‘PAYGO Act’’ refers 

to a bill or joint resolution that affects direct spending or revenue relative to the baseline. The budgetary effects of changes 

in revenues and outyear modifications to substantive law included in appropriation Acts as defined in paragraph (4) shall 

be treated as if they were contained in PAYGO legislation or 

a PAYGO Act. 

(8) The term ‘‘timing shift’’ refers to a delay of the date on 

which outlays flowing from direct spending would otherwise 

occur from the ninth outyear to the tenth outyear or an acceleration of the date on which revenues would otherwise occur 

from the tenth outyear to the ninth outyear. 

SEC. 4. ø2 U.S.C. 933¿ PAYGO ESTIMATES AND PAYGO SCORECARDS. 

(a) PAYGO ESTIMATES.— 

(1) REQUIRED DESIGNATION IN PAYGO ACTS.— 

(A) HOUSE OF REPRESENTATIVES.—To establish the 

budgetary effects of a PAYGO Act consistent with the determination made by the Chairman of the House Budget 

Committee, a PAYGO Act originated in or amended by the 

House of Representatives may include the following statement: ‘‘The budgetary effects of this Act, for the purpose 
147 Sec. 4 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

of complying with the Statutory Pay-As-You-Go-Act of 

2010, shall be determined by reference to the latest statement titled ‘Budgetary Effects of PAYGO Legislation’ for 

this Act, submitted for printing in the Congressional 

Record by the Chairman of the House Budget Committee, 

provided that such statement has been submitted prior to 

the vote on passage.’’. 

(B) SENATE.—To establish the budgetary effects of a 

PAYGO Act consistent with the determination made by 

the Chairman of the Senate Budget Committee, a PAYGO 

Act originated in or amended by the Senate shall include 

the following statement: ‘‘The budgetary effects of this Act, 

for the purpose of complying with the Statutory Pay-AsYou-Go-Act of 2010, shall be determined by reference to 

the latest statement titled ‘Budgetary Effects of PAYGO 

Legislation’ for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget 

Committee, provided that such statement has been submitted prior to the vote on passage.’’. 

(C) CONFERENCE REPORTS AND AMENDMENTS BETWEEN

THE HOUSES.—To establish the budgetary effects of the 

conference report on a PAYGO Act, or an amendment to 

an amendment between Houses on a PAYGO Act, which if 

estimated shall be estimated jointly by the Chairmen of 

the House and Senate Budget Committees, the conference 

report or amendment between the Houses shall include the 

following statement: ‘‘The budgetary effects of this Act, for 

the purpose of complying with the Statutory Pay-As-YouGo-Act of 2010, shall be determined by reference to the latest statement titled ‘Budgetary Effects of PAYGO Legislation’ for this Act, jointly submitted for printing in the Congressional Record by the Chairmen of the House and Senate Budget Committees, provided that such statement has 

been submitted prior to the vote on passage in the House 

acting first on this conference report or amendment between the Houses.’’. 

(2) DETERMINATION OF BUDGETARY EFFECTS OF PAYGO

ACTS.— 

(A) ORIGINAL LEGISLATION.— 

(i) STATEMENT AND ESTIMATE.—Prior to a vote on 

passage of a PAYGO Act originated or amended by one 

House, the Chairman of the Budget Committee of that 

House may submit for printing in the Congressional 

Record a statement titled ‘‘Budgetary Effects of 

PAYGO Legislation’’ which shall include an estimate 

of the budgetary effects of that Act, if available prior 

to passage of the Act by that House and shall submit, 

if applicable, an identification of any current policy adjustments made pursuant to section 7 of this Act. The 

timely submission of such a statement, in conjunction 

with the appropriate designation made pursuant to 

paragraph (1)(A) or (1)(B), as applicable, shall establish the budgetary effects of the PAYGO Act for the 

purposes of this Act. 
Sec. 4 STATUTORY PAY–AS–YOU–GO ACT OF 2010 148 

(ii) EFFECT.—The latest statement submitted by 

the Chairman of the Budget Committee of that House 

prior to passage shall supersede any prior statements 

submitted in the Congressional Record and shall be 

valid only if the PAYGO Act is not further amended 

by either House. 

(iii) FAILURE TO SUBMIT ESTIMATE.—If— 

(I) the estimate required by clause (i) has not 

been submitted prior to passage by that House; 

(II) such estimate has been submitted but is 

no longer valid due to a subsequent amendment to 

the PAYGO Act; or 

(III) the designation required pursuant to this 

subsection has not been made; 

the budgetary effects of the PAYGO Act shall be determined under subsection (d)(3), provided that this 

clause shall not apply if a valid designation is subsequently included in that PAYGO Act pursuant to paragraph (1)(C) and a statement is submitted pursuant to 

subparagraph (B). 

(B) CONFERENCE REPORTS AND AMENDMENTS BETWEEN

HOUSES.— 

(i) IN GENERAL.—Prior to the adoption of a report 

of a committee of conference on a PAYGO Act in either 

House, or disposition of an amendment to an amendment between Houses on a PAYGO Act, the Chairmen 

of the Budget Committees of the House and Senate 

may jointly submit for printing in the Congressional 

Record a statement titled ‘‘Budgetary Effects of 

PAYGO Legislation’’ which shall include an estimate 

of the budgetary effects of that Act if available prior 

to passage of the Act by the House acting first on the 

legislation and shall submit, if applicable, an identification of any current policy adjustments made pursuant to section 7 of this title. The timely submission of 

such a statement, in conjunction with the appropriate 

designation made pursuant to paragraph (1)(C), shall 

establish the budgetary effects of the PAYGO Act for 

the purposes of this Act. 

(ii) FAILURE TO SUBMIT ESTIMATE.—If such estimate has not been submitted prior to the adoption of 

a report of a committee of conference by either House, 

or if the designation required pursuant to this subsection has not been made, the budgetary effects of the 

PAYGO Act shall be determined under subsection 

(d)(3). 

(3) PROCEDURE IN THE SENATE.—In the Senate, upon submission of a statement titled ‘‘Budgetary Effects of PAYGO 

Legislation’’ by the Chairman of the Senate Budget Committee 

for printing in the Congressional Record, the Legislative Clerk 

shall read the statement. 

(4) JURISDICTION OF THE BUDGET COMMITTEES.—For the 

purposes of enforcing section 306 of the Congressional Budget 

Act of 1974, a designation made pursuant to paragraph (1)(A), 
149 Sec. 4 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

(1)(B), or (1)(C), that includes only the language specifically 

prescribed therein, shall not be considered a matter within the 

jurisdiction of either the Senate or House Committees on the 

Budget. 

(b) CBO PAYGO ESTIMATES.— (1) IN GENERAL.— (A) ESTIMATES.—Section 308(a) of the Congressional 

Budget Act of 1974 is amended by adding at the end the 

following new paragraph: 

‘‘(3) CBO PAYGO ESTIMATES.— ‘‘(A) The Chairs of the Committees on the Budget of 

the House and Senate, as applicable, shall request from 

the Director of the Congressional Budget Office an estimate of the budgetary effects of PAYGO legislation. 

‘‘(B) Estimates shall be prepared using baseline estimates supplied by the Congressional Budget Office, consistent with section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985. 

‘‘(C) The Director shall not count timing shifts, as that 

term is defined at section 3(8) of the Statutory Pay-AsYou-Go Act of 2010, in estimates of the budgetary effects 

of PAYGO Legislation.’’. 

(B) SIDEHEADING.—The side heading of section 308(a) 

of the Congressional Budget Act of 1974 is amended by 

striking ‘‘Reports on’’. 

(2) GUIDELINES.—Section 308 of the Congressional Budget 

Act of 1974 is amended by adding at the end the following new 

subsection: 

‘‘(d) SCOREKEEPING GUIDELINES.—Estimates under this section 

shall be provided in accordance with the scorekeeping guidelines 

determined under section 252(d)(5) of the Balanced Budget and 

Emergency Deficit Control Act of 1985.’’. 

(c) CURRENT POLICY ADJUSTMENTS FOR CERTAIN LEGISLA- TION.— (1) IN GENERAL.—For any provision of legislation that 

meets the criteria in subsection (c), (d), (e) or (f) of section 7, 

the Chairs of the Committees on the Budget of the House and 

Senate, as applicable, shall request that CBO adjust the estimate of budgetary effects of that legislation pursuant to paragraph (2) for the purposes of this title. A single piece of legislation may contain provisions that meet criteria in more than 

one of the subsections referred to in the preceding sentence. 

CBO shall adjust estimates for legislation designated under 

subsection (a) and estimated under subsection (b). OMB shall 

adjust estimates for legislation estimated under subsection 

(d)(3). 

(2) ADJUSTMENTS.— 

(A) ESTIMATES.—CBO or OMB, as applicable, shall exclude from the estimate of budgetary effects any budgetary 

effects of a provision that meets the criteria in subsection 

(c), (d), (e) or (f) of section 7, to the extent that those budgetary effects, when combined with all other excluded budgetary effects of any other previously designated provisions 

of enacted legislation under the same subsection of section 
Sec. 4 STATUTORY PAY–AS–YOU–GO ACT OF 2010 150 

7, do not exceed the maximum applicable current policy 

adjustment defined under the applicable subsection of section 7 for the applicable 10-year period. 

(B) BASELINE.—Any estimate made pursuant to subparagraph (A) shall be prepared using baseline estimates 

supplied by the Congressional Budget Office, consistent 

with section 257 of the BBEDCA. CBO estimates of legislation adjusted for current policy shall include a separate 

presentation of costs excluded from the calculation of budgetary effects for the legislation, as well as an updated total 

of all excluded costs of provisions within subsection (c), (d), 

or (e) of section 7, as applicable, and in the case of paragraph (1) of section 7(f), within any of the subparagraphs 

(A) through (L) of such paragraph, as applicable. 

(3) LIMITATION ON AVAILABILITY OF EXCESS SAVINGS.— 

(A) PROHIBITION ON USE OF EXCESS SAVING FOR INELIGIBLE POLICIES.—To the extent the adjustment for current 

policy of any provision estimated under this subsection exceeds the estimated budgetary effects of that provision, 

these excess savings shall not be available to offset the 

costs of any provisions not otherwise eligible for a current 

policy adjustment under section 7, and shall not be counted on the PAYGO scorecards established pursuant to subsections (d)(4) and (d)(5). 

(B) PROHIBITION ON USE OF EXCESS SAVINGS ACROSS

BUDGET AREAS.—For provisions eligible for a current policy 

adjustment under subsections (c) through (f) of section 7, 

to the extent the adjustment for current policy of any provision exceeds the estimated budgetary effects of that 

same provision, the excess savings shall be available only 

to offset the costs of other provisions that qualify for a current policy adjustment in that same subsection. Each paragraph in section 7(f)(1) shall be considered a separate subsection for purposes of this section. 

(4) FURTHER GUIDANCE ON ESTIMATING BUDGETARY EFFECTS.—Estimates of budgetary effects under this subsection 

shall be consistent with the guidance provided at section 7(h). 

(5) INCLUSION OF STATEMENT.—For PAYGO legislation adjusted pursuant to section 7, the Chairman of the House or 

Senate Budget Committee, as applicable, shall include in any 

statement titled ‘‘Budgetary Effects of PAYGO Legislation’’, 

submitted for that legislation pursuant to section 4, an explanation of the current policy designation and adjustments. 

(d) OMB PAYGO SCORECARDS.— 

(1) IN GENERAL.—OMB shall maintain and make publicly 

available a continuously updated document containing two 

PAYGO scorecards displaying the budgetary effects of PAYGO 

legislation as determined under section 308 of the Congressional Budget Act of 1974, applying the look-back requirement 

in subsection (e) and the averaging requirement in subsection 

(f), and a separate addendum displaying the estimates of the 

costs of provisions designated in statute as emergency requirements. 
151 Sec. 4 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

(2) ESTIMATES IN LEGISLATION.—Except as provided in 

paragraph (3), in making the calculations for the PAYGO 

scorecards, OMB shall use the budgetary effects included by 

reference in the applicable legislation pursuant to subsection 

(a). 

(3) OMB PAYGO ESTIMATES.—If a PAYGO Act does not contain a valid reference to its budgetary effects consistent with 

subsection (a), OMB shall estimate the budgetary effects of 

that legislation upon its enactment. The OMB estimate shall 

be based on the approaches to scorekeeping set forth in section 

308 of the Congressional Budget Act of 1974, as amended by 

this title, and subsection (g)(4), and shall use the same economic and technical assumptions as used in the most recent 

budget submitted by the President under section 1105(a) of 

title 31 of the United States Code. 

(4) 5-YEAR SCORECARD.—The first scorecard shall display 

the budgetary effects of PAYGO legislation in each year over 

the 5-year period beginning in the budget year. 

(5) 10-YEAR SCORECARD.—The second scorecard shall display the budgetary effects of PAYGO legislation in each year 

over the 10-year period beginning in the budget year. 

(6) COMMUNITY LIVING ASSISTANCE SERVICES AND SUPPORTS

ACT.—Neither scorecard maintained by OMB pursuant to this 

subsection shall include net savings from any provisions of legislation titled ‘‘Community Living Assistance Services and Supports Act’’, which establishes a Federal insurance program for 

long-term care, if such legislation is enacted into law, or 

amended, subsequent to the date of enactment of this title. 

(e) LOOK-BACK TO CAPTURE CURRENT-YEAR EFFECTS.—For purposes of this section, OMB shall treat the budgetary effects of 

PAYGO legislation enacted during a session of Congress that occur 

during the current year as though they occurred in the budget 

year. 

(f) AVERAGING USED TO MEASURE COMPLIANCE OVER 5-YEAR

AND 10-YEAR PERIODS.—OMB shall cumulate the budgetary effects 

of a PAYGO Act over the budget year (which includes any lookback effects under subsection (e)) and— 

(1) for purposes of the 5-year scorecard referred to in subsection (d)(4), the four subsequent outyears, divide that cumulative total by five, and enter the quotient in the budget-year 

column and in each subsequent column of the 5-year PAYGO 

scorecard; and 

(2) for purposes of the 10-year scorecard referred to in subsection (d)(5), the nine subsequent outyears, divide that cumulative total by ten, and enter the quotient in the budget-year 

column and in each subsequent column of the 10-year PAYGO 

scorecard. 

(g) EMERGENCY LEGISLATION.— 

(1) DESIGNATION IN STATUTE.—If a provision of direct 

spending or revenue legislation in a PAYGO Act is enacted as 

an emergency requirement that the Congress so designates in 

statute pursuant to this section, the amounts of new budget 

authority, outlays, and revenue in all fiscal years resulting 
Sec. 4 STATUTORY PAY–AS–YOU–GO ACT OF 2010 152 

from that provision shall be treated as an emergency requirement for the purposes of this Act. 

(2) DESIGNATION IN THE HOUSE OF REPRESENTATIVES.—If a 

PAYGO Act includes a provision expressly designated as an 

emergency for the purposes of this title, the Chair shall put the 

question of consideration with respect thereto. 

(3) POINT OF ORDER IN THE SENATE.— (A) IN GENERAL.—When the Senate is considering a 

PAYGO Act, if a point of order is made by a Senator 

against an emergency designation in that measure, that 

provision making such a designation shall be stricken from 

the measure and may not be offered as an amendment 

from the floor. 

(B) SUPERMAJORITY WAIVER AND APPEALS.— (i) WAIVER.—Subparagraph (A) may be waived or 

suspended in the Senate only by an affirmative vote of 

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

(ii) APPEALS.—Appeals in the Senate from the decisions of the Chair relating to any provision of this 

subsection shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and 

the manager of the bill or joint resolution, as the case 

may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair 

on a point of order raised under this subsection. 

(C) DEFINITION OF AN EMERGENCY DESIGNATION.—For 

purposes of subparagraph (A), a provision shall be considered an emergency designation if it designates any item as 

an emergency requirement pursuant to this subsection. 

(D) FORM OF THE POINT OF ORDER.—A point of order 

under subparagraph (A) may be raised by a Senator as 

provided in section 313 (e) of the Congressional Budget Act 

of 1974. 

(E) CONFERENCE REPORTS.—When the Senate is considering a conference report on, or an amendment between 

the Houses in relation to, a PAYGO Act, upon a point of 

order being made by any Senator pursuant to this section, 

and such point of order being sustained, such material contained in such conference report shall be deemed stricken, 

and the Senate shall proceed to consider the question of 

whether the Senate shall recede from its amendment and 

concur with a further amendment, or concur in the House 

amendment with a further amendment, as the case may 

be, which further amendment shall consist of only that 

portion of the conference report or House amendment, as 

the case may be, not so stricken. Any such motion in the 

Senate shall be debatable. In any case in which such point 

of order is sustained against a conference report (or Senate 

amendment derived from such conference report by operation of this subsection), no further amendment shall be in 

order. 

(4) EFFECT OF DESIGNATION ON SCORING.—If a provision is 

designated as an emergency requirement under this Act, CBO 
153 Sec. 6 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

or OMB, as applicable, shall not include the budgetary effects 

of such a provision in its estimate of the budgetary effects of 

that PAYGO legislation. 

SEC. 5. ø2 U.S.C. 934¿ ANNUAL REPORT AND SEQUESTRATION ORDER. 

(a) ANNUAL REPORT.—Not later than 14 days (excluding weekends and holidays) after Congress adjourns to end a session, OMB 

shall make publicly available and cause to be printed in the Federal Register an annual PAYGO report. The report shall include an 

up-to-date document containing the PAYGO scorecards, a description of any current policy adjustments made under section 4(c), information about emergency legislation (if any) designated under 

section 4(g), information about any sequestration if required by 

subsection (b), and other data and explanations that enhance public understanding of this title and actions taken under it. 

(b) SEQUESTRATION ORDER.—If the annual report issued at the 

end of a session of Congress under subsection (a) shows a debit on 

either PAYGO scorecard for the budget year, OMB shall prepare 

and the President shall issue and include in that report a sequestration order that, upon issuance, shall reduce budgetary resources 

of direct spending programs by enough to offset that debit as prescribed in section 6. If there is a debit on both scorecards, the order 

shall fully offset the larger of the two debits. OMB shall transmit 

the order and the report to the House of Representatives and the 

Senate. If the President issues a sequestration order, the annual 

report shall contain, for each budget account to be sequestered, estimates of the baseline level of budgetary resources subject to sequestration, the amount of budgetary resources to be sequestered, 

and the outlay reductions that will occur in the budget year and 

the subsequent fiscal year because of that sequestration. 

SEC. 6. ø2 U.S.C. 935¿ CALCULATING A SEQUESTRATION. 

(a) REDUCING NONEXEMPT BUDGETARY RESOURCES BY A UNIFORM PERCENTAGE.— 

(1) IN GENERAL.—OMB shall calculate the uniform percentage by which the budgetary resources of nonexempt direct 

spending programs are to be sequestered such that the outlay 

savings resulting from that sequestration, as calculated under 

subsection (b), shall offset the budget-year debit, if any, on the 

applicable PAYGO scorecard. If the uniform percentage calculated under the prior sentence exceeds 4 percent, the Medicare programs described in section 256(d) of BBEDCA shall be 

reduced by 4 percent and the uniform percentage by which the 

budgetary resources of all other nonexempt direct spending 

programs are to be sequestered shall be increased, as necessary, so that the sequestration of Medicare and of all other 

nonexempt direct spending programs together produce the required outlay savings. 

(2) PROGRAMS AND ACTIVITIES IN UNIFIED BUDGET ONLY.— 

Subject to the exemptions set forth in section 11, OMB shall 

determine the uniform percentage required under paragraph 

(1) with respect to programs and activities contained in the 

unified budget only. 

(b) OUTLAY SAVINGS.—In determining the amount by which a 

sequestration offsets a budget-year debit, OMB shall count— 
Sec. 7 STATUTORY PAY–AS–YOU–GO ACT OF 2010 154 

(1) the amount by which the sequestration in a crop year 

of crop support payments, pursuant to section 256(j) of 

BBEDCA, reduces outlays in the budget year and the subsequent fiscal year; 

(2) the amount by which the sequestration of Medicare 

payments in the 12-month period following the sequestration 

order, pursuant to section 256(d) of BBEDCA, reduces outlays 

in the budget year and the subsequent fiscal year; and 

(3) the amount by which the sequestration in the budget 

year of the budgetary resources of other nonexempt mandatory 

programs reduces outlays in the budget year and in the subsequent fiscal year. 

SEC. 7. ø2 U.S.C. 936¿ ADJUSTMENT FOR CURRENT POLICIES. 

(a) PURPOSE.—The purpose of this section is to provide for adjustments of estimates of budgetary effects of PAYGO legislation 

for legislation affecting 4 areas of the budget— 

(1) payments made under section 1848 of the Social Security Act (referred to in this section as ‘‘Payment for Physicians’ 

Services’’); 

(2) the Estate and Gift Tax under subtitle B of the Internal Revenue Code of 1986; 

(3) the AMT; and 

(4) provisions of EGTRRA or JGTRRA that amended the 

Internal Revenue Code of 1986 (or provisions in later statutes 

further amending the amendments made by EGTRRA or 

JGTRRA), other than— 

(A) the provisions of those 2 Acts that were made permanent by the Pension Protection Act of 2006 (Public Law 

109–280); 

(B) amendments to the Estate and Gift Tax referred to 

in paragraph (2); 

(C) the AMT referred to in paragraph (3); and 

(D) the income tax rates on ordinary income that 

apply to individuals with adjusted gross incomes greater 

than $200,000 for a single filer and $250,000 for joint filers. 

(b) DURATION.—This section shall remain in effect through December 31, 2011. 

(c) MEDICARE PAYMENTS TO PHYSICIANS.— 

(1) CRITERIA.—Legislation that includes provisions amending or superseding the system for updating payments under 

subsections (d) and (f) of section 1848 of the Social Security Act 

shall trigger the current policy adjustment required by this 

title. 

(2) ADJUSTMENT.—The amount of the maximum current 

policy adjustment shall be the difference between— 

(A) estimated net outlays attributable to the payment 

rates and related parameters in accordance with subsections (d) and (f) of section 1848 of the Social Security 

Act (as scheduled on December 31, 2009, to be in effect); 

and 

(B) what those net outlays would have been if— 
155 Sec. 7 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

(i) the nominal payment rates and related parameters in effect for 2009 had been in effect through December 31, 2014, without change; and 

(ii) thereafter, the nominal payment rates and related parameters described in subparagraph (A) had 

applied and the assumption described in clause (i) had 

never applied. 

(3) LIMITATION.—If the provisions in the legislation that 

cause it to meet the criteria in paragraph (1) cover a time period that ends before December 31, 2014, subject to the maximum adjustment provided for under paragraph (2), the 

amount of each current policy adjustment made pursuant to 

this section shall be limited to the difference between— 

(A) estimated net outlays attributable to the payment 

rates and related parameters specified in that section of 

the Social Security Act (as scheduled on December 31, 

2009, to be in effect for the period of time covered by the 

relevant provisions of the eligible legislation); and 

(B) what those net outlays would have been if the 

nominal payment rates and related parameters in effect 

for 2009 had been in effect, without change, for the same 

period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A). 

(d) ESTATE AND GIFT TAX.— 

(1) CRITERIA.—Legislation that includes provisions amending the Estate and Gift Tax under subtitle B of the Internal 

Revenue Code of 1986 shall trigger the current policy adjustment required by this title. 

(2) ADJUSTMENT.—The amount of the maximum current 

policy adjustment shall be the difference between— 

(A) total revenues projected to be collected under the 

Internal Revenue Code of 1986 (as scheduled on December 

31, 2009, to be in effect); and 

(B) what those revenue collections would have been if, 

on the date of enactment of the legislation meeting the criteria in paragraph (1), estate and gift tax law had instead 

been amended so that the tax rates, nominal exemption 

amounts, and related parameters in effect for tax year 

2009 had remained in effect through December 31, 2011, 

with nominal exemption amounts indexed for inflation 

after 2009 consistent with subsection (g). 

(3) LIMITATION.—If the provisions in the legislation that 

cause it to meet the criteria in paragraph (1) cover a time period that ends before December 31, 2011, subject to the maximum adjustment provided for under paragraph (2), the 

amount of each current policy adjustment made pursuant to 

this section shall be limited to the difference between— 

(A) total revenues projected to be collected under the 

Internal Revenue Code of 1986 (as scheduled on December 

31, 2009, to be in effect for the period of time covered by 

the relevant provisions of the eligible legislation); and 

(B) what those revenues would have been if the estate 

and gift tax law rates, nominal exemption amounts, and 

related parameters in effect for 2009, with nominal exemp-
Sec. 7 STATUTORY PAY–AS–YOU–GO ACT OF 2010 156 

tion amounts indexed for inflation after 2009 consistent 

with subsection (g), had been in effect for the same period 

of time covered by the relevant provisions of the eligible 

legislation as under subparagraph (A). 

(4) DURATION OF POLICY ADJUSTMENT.—Adjustments made 

pursuant to this subsection are available for policies affecting 

the estate and gift tax through only December 31, 2011. Any 

adjustments shall include budgetary effects in all years from 

these policy changes. 

(e) AMT RELIEF.— (1) CRITERIA.—Legislation that includes provisions extending AMT relief shall trigger the current policy adjustment required by this title. 

(2) ADJUSTMENT.—The amount of the maximum current 

policy adjustment shall be the difference between— 

(A) total revenues projected to be collected under the 

Internal Revenue Code of 1986 (as scheduled on December 

31, 2009, to be in effect); and 

(B) what those revenue collections would have been if, 

on the date of enactment of legislation meeting the criteria 

in paragraph (1), AMT law had instead been amended by 

making commensurate adjustments in the exemption 

amounts for joint and single filers in such a manner that 

the number of taxpayers with AMT liability or lost credits 

that occur as a result of the AMT would not be estimated 

to exceed the number of taxpayers affected by the AMT in 

tax year 2008 in any year for which relief is provided, 

through December 31, 2011. 

(3) LIMITATION.—If the provisions in the legislation that 

cause it to meet the criteria in paragraph (1) cover a time period that ends before December 31, 2011, subject to the maximum adjustment provided for under paragraph (2), the 

amount of each current policy adjustment made pursuant to 

this section shall be limited to the difference between— 

(A) total revenues projected to be collected under the 

Internal Revenue Code of 1986 (as scheduled on December 

31, 2009, to be in effect for the period of time covered by 

the relevant provisions of the eligible legislation); and 

(B) what those revenues would have been if, on the 

date of enactment of legislation meeting the criteria in 

paragraph (1), AMT law had instead been amended by 

making commensurate adjustments in the exemption 

amounts for joint and single filers in such a manner that 

the number of taxpayers with AMT liability or lost credits 

that occur as a result of the AMT would not be estimated 

to exceed the number of AMT taxpayers in tax year 2008 

for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A). 

(4) DURATION OF POLICY ADJUSTMENT.—Adjustments made 

pursuant to this subsection are available for policies affecting 

the AMT through only December 31, 2011. Any adjustments 

shall include budgetary effects in all years from these policy 

changes. 

(f) PERMANENT EXTENSION OF MIDDLE-CLASS TAX CUTS.— 
157 Sec. 7 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

(1) CRITERIA.—Legislation that includes provisions extending middle-class tax cuts shall trigger the current policy adjustment required by this title if those provisions extend 1 or 

more of the following provisions: 

(A) The 10 percent bracket as in effect for tax year 

2010, as provided for under section 101(a) of EGTRRA and 

any later amendments through December 31, 2009. 

(B) The child tax credit as in effect for tax year 2010, 

as provided for under section 201 of EGTRRA and any 

later amendments through December 31, 2009. 

(C) Tax benefits for married couples as in effect for tax 

year 2010, as provided for under title III of EGTRRA and 

any later amendments through December 31, 2009. 

(D) The adoption credit as in effect in tax year 2010, 

as provided for under section 202 of EGTRRA and any 

later amendments through December 31, 2009. 

(E) The dependent care credit as in effect in tax year 

2010, as provided for under section 204 of EGTRRA and 

any later amendments through December 31, 2009. 

(F) The employer-provided child care credit as in effect 

in tax year 2010, as provided for under section 205 of 

EGTRRA and any later amendments through December 

31, 2009. 

(G) The education tax benefits as in effect in tax year 

2010, as provided for under title IV of EGTRRA and any 

later amendments through December 31, 2009. 

(H) The 25 and 28 percent brackets as in effect for tax 

year 2010, as provided for under section 101(a) of 

EGTRRA and any later amendments through December 

31, 2009. 

(I) The 33 percent bracket as in effect for tax year 

2010, as provided for under section 101(a) of EGTRRA and 

any later amendment through December 31, 2009, affecting taxpayers with adjusted gross income of $200,000 or 

less for single filers and $250,000 or less for joint filers in 

tax year 2010, with these income levels indexed for inflation in each subsequent year consistent with subsection 

(g). 

(J) The rates on income derived from capital gains and 

qualified dividends as in effect for tax year 2010, as provided for under sections 301 and 302 of JGTRRA and any 

later amendment through December 31, 2009, affecting 

taxpayers with adjusted gross income of $200,000 or less 

for single filers and $250,000 for joint filers with these income levels indexed for inflation in each subsequent year 

consistent with subsection (g). 

(K) The phaseout of personal exemptions and the overall limitation on itemized deductions as in effect for tax 

year 2010, as provided for under sections 102 and 103 of 

EGTRRA of 2001, respectively, and any later amendment 

through December 31, 2009, affecting taxpayer with adjusted gross income of $200,000 or less for single filers and 

$250,000 for joint filers, with these income levels indexed 
Sec. 7 STATUTORY PAY–AS–YOU–GO ACT OF 2010 158 

68 26 U.S.C. 179(b). 69 26 U.S.C. 1(f)(3). 

for inflation in each subsequent year consistent with subsection (g). 

(L) The increase in the limitations on expensing depreciable business assets for small businesses under section 

179(b) of the Internal Revenue Code of 1986 as in effect in 

tax year 2010, as provided under section 202 of JGTRRA 68

and any later amendment through December 31, 2009. 

(2) ADJUSTMENT.—The amount of the maximum current 

policy adjustment shall be the difference between— 

(A) total revenues projected to be collected and outlays 

to be paid under the Internal Revenue Code of 1986 (as 

scheduled on December 31, 2009, to be in effect); and 

(B) what those revenue collections and outlay payments would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), the provisions identified in paragraph (1) were made permanent. 

(3) LIMITATION.—If the provisions in the legislation that 

cause it to meet the criteria in paragraph (1) are not permanent, subject to the maximum adjustment provided for under 

paragraph (2), the amount of each current policy adjustment 

made pursuant to this section shall be limited to the difference 

between— 

(A) total revenues projected to be collected and outlays 

to be paid under the Internal Revenue Code of 1986 (as 

scheduled on December 31, 2009, to be in effect for the period of time covered by the relevant provisions of the eligible legislation); and 

(B) what those revenue collections and outlay payments would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), the provisions identified in paragraph (1) had been in effect, without change, for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A). 

(g) INDEXING FOR INFLATION.—Indexed amounts are assumed 

to increase in each year by an amount equal to the cost-of-living 

adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 69 for the calendar year in which the taxable 

year begins, determined by substituting ‘‘calendar year 2008’’ for 

‘‘calendar year 1992’’ in subparagraph (B) of such section. 

(h) GUIDANCE ON ESTIMATES AND CURRENT POLICY ADJUSTMENTS.— 

(1) MIDDLE CLASS TAX CUTS.—For purposes of estimates 

made pursuant to subsection (f)— 

(A) each of the income tax provisions shall be estimated as though the AMT had remained at current law as 

scheduled on December 31, 2009 to be in effect; and 

(B) if more than 1 of the income tax provisions is included in a single piece of legislation, those provisions 

shall be estimated in the order in which they appear. 
159 Sec. 10 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

70Section 275 of BBEDCA was repealed by the Budget Control Act (Public Law 112–39). By 

repealing section 275 of BBEDCA, the Budget Control Act (Public Law 112–39) made all the 

provisions of BBEDCA permanent. 71 Before its repeal, section 256(a) read as follows: 

(a) AUTOMATIC SPENDING INCREASES.—Automatic spending increases are increases in outlays due to changes in indexes in the following programs: 

(1) Special milk program; and 

(2) Vocational rehabilitation basic State grants. 

In those programs all amounts other than the automatic spending increases shall be exempt 

from reduction under any order issued under this part. 

(2) AMT.—For purposes of estimates made pursuant to 

subsection (e), changes to the AMT shall be estimated as if, on 

the date of enactment of legislation meeting the criteria in subsection (e)(1), all of the income tax provisions identified in subsection (f)(1) were made permanent. 

SEC. 8. ø2 U.S.C. 937¿ APPLICATION OF BBEDCA. 

For purposes of this title— 

(1) notwithstanding section 275 of BBEDCA,70 the provisions of sections 255, 256, 257, and 274 of BBEDCA, as amended by this title, shall apply to the provisions of this title; 

(2) references in sections 255, 256, 257, and 274 to ‘‘this 

part’’ or ‘‘this title’’ shall be interpreted as applying to this 

title; 

(3) references in sections 255, 256, 257, and 274 of 

BBEDCA to ‘‘section 254’’ shall be interpreted as referencing 

section 5 of this title; 

(4) the reference in section 256(b) of BBEDCA to ‘‘section 

252 or 253’’ shall be interpreted as referencing section 5 of this 

title; 

(5) the reference in section 256(d)(1) of BBEDCA to ‘‘section 252 or 253’’ shall be interpreted as referencing section 6 

of this title; 

(6) the reference in section 256(d)(4) of BBEDCA to ‘‘section 252 or 253’’ shall be interpreted as referencing section 5 

of this title; 

(7) section 256(k) of BBEDCA shall apply to a sequestration, if any, under this title; and 

(8) references in section 257(e) of BBEDCA to ‘‘section 251, 

252, or 253’’ shall be interpreted as referencing section 4 of this 

title. 

SEC. 9. TECHNICAL CORRECTIONS. 

(a) Section 250(c)(18) of BBEDCA is amended by striking ‘‘the 

expenses the Federal deposit insurance agencies’’ and inserting 

‘‘the expenses of the Federal deposit insurance agencies’’. 

(b) Section 256(k)(1) of BBEDCA is amended by striking ‘‘in 

paragraph (5)’’ and inserting ‘‘in paragraph (6)’’. 

SEC. 10. CONFORMING AMENDMENTS. 

(a) Section 256(a) of BBEDCA is repealed.71

(b) Section 256(b) of BBEDCA is amended by striking ‘‘origination fees under sections 438(c)(2) and 455(c) of that Act shall each 

be increased by 0.50 percentage point.’’ And inserting in lieu thereof ‘‘origination fees under sections 438(c)(2) and (6) and 455(c) and 

loan processing and issuance fees under section 428(f)(1)(A)(ii) of 

that Act shall each be increased by the uniform percentage speci-
Sec. 10 STATUTORY PAY–AS–YOU–GO ACT OF 2010 160 

72 Before its repeal, section 256(c) read as follows: 

(c) TREATMENT OF FOSTER CARE AND ADOPTION ASSISTANCE PROGRAMS.—Any order issued 

by the President under section 254 shall make the reduction which is 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 which is 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 joint resolution, 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. 

fied in that sequestration order, and, for student loans originated 

during the period of the sequestration, special allowance payments 

under section 438(b) of that Act accruing during the period of the 

sequestration shall be reduced by the uniform percentage specified 

in that sequestration order.’’. 

(c) Section 256(c) of BBEDCA is repealed.72

(d) Section 256(d) of BBEDCA is amended— 

(1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (5), and (6); 

(2) by amending paragraph (1) to read as follows: 

‘‘(1) CALCULATION OF REDUCTION IN PAYMENT AMOUNTS.— 

To achieve the total percentage reduction in those programs required by section 252 or 253, subject to paragraph (2), and notwithstanding section 710 of the Social Security Act, OMB shall 

determine, and the applicable Presidential order under section 

254 shall implement, the percentage reduction that shall 

apply, with respect to the health insurance programs under 

title XVIII of the Social Security Act— 

‘‘(A) in the case of parts A and B of such title, to individual payments for services furnished during the one-year 

period beginning on the first day of the first month beginning after the date the order is issued (or, if later, the date 

specified in paragraph (4)); and ‘‘(B) in the case of parts C 

and D, to monthly payments under contracts under such 

parts for the same one-year period; such that the reduction 

made in payments under that order shall achieve the required total percentage reduction in those payments for 

that period.’’. 

(3) by inserting after paragraph (1) the following: 

‘‘(2) UNIFORM REDUCTION RATE; MAXIMUM PERMISSIBLE RE- DUCTION.—Reductions in payments for programs and activities 

under such title XVIII pursuant to a sequestration order under 

section 254 shall be at a uniform rate, which shall not exceed 

4 percent, across all such programs and activities subject to 

such order.’’; 

(4) by inserting after paragraph (3), as redesignated, the 

following: 

‘‘(4) TIMING OF SUBSEQUENT SEQUESTRATION ORDER.—A sequestration order required by section 252 or 253 with respect 

to programs under such title XVIII shall not take effect until 

the first month beginning after the end of the effective period 
161 Sec. 11 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

of any prior sequestration order with respect to such programs, 

as determined in accordance with paragraph (1).’’; 

(5) in paragraph (6), as redesignated, to read as follows: 

‘‘(6) SEQUESTRATION DISREGARDED IN COMPUTING PAYMENT

AMOUNTS.—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 part, for purposes of computing any adjustments to payment rates under 

such title XVIII, specifically including— 

‘‘(A) the part C growth percentage under section 

1853(c)(6); 

‘‘(B) the part D annual growth rate under section 

1860D-2(b)(6); and 

‘‘(C) application of risk corridors to part D payment 

rates under section 1860D-15(e).’’; and 

(6) by adding after paragraph (6), as redesignated, the following: 

‘‘(7) EXEMPTIONS FROM SEQUESTRATION.—In addition to the 

programs and activities specified in section 255, the following 

shall be exempt from sequestration under this part: 

‘‘(A) PART D LOW-INCOME SUBSIDIES.—Premium and 

cost-sharing subsidies under section 1860D-14 of the Social 

Security Act. 

‘‘(B) PART D CATASTROPHIC SUBSIDY.—Payments under 

section 1860D-15(b) and (e)(2)(B) of the Social Security 

Act. 

‘‘(C) QUALIFIED INDIVIDUAL (QI) PREMIUMS.—Payments 

to States for coverage of Medicare cost-sharing for certain 

low-income Medicare beneficiaries under section 1933 of 

the Social Security Act.’’. 

SEC. 11. EXEMPT PROGRAMS AND ACTIVITIES. 

(a) DESIGNATIONS.—Section 255 of BBEDCA is amended by redesignating subsection (i) as (j) and striking ‘‘1998’’ and inserting 

in lieu thereof ‘‘2010’’. 

(b) SOCIAL SECURITY, VETERANS PROGRAMS, NET INTEREST, 

AND TAX CREDITS.—Subsections (a) through (d) of section 255 of 

BBEDCA are amended to read as follows: 

‘‘(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 (42 U.S.C. 401 et seq.), and benefits payable 

under section 231b(a), 231b(f)(2), 231c(a), and 231c(f) of title 45 

United States Code, shall be exempt from reduction under any 

order issued under this part. 

‘‘(b) VETERANS PROGRAMS.—The following programs shall be 

exempt from reduction under any order issued under this part: 

‘‘All programs administered by the Department of Veterans Affairs. 

‘‘Special Benefits for Certain World War II Veterans (28-0401- 

0-1-701). 

‘‘(c) NET INTEREST.—No reduction of payments for net interest 

(all of major functional category 900) shall be made under any 

order issued under this part. 
Sec. 11 STATUTORY PAY–AS–YOU–GO ACT OF 2010 162 

‘‘(d) REFUNDABLE INCOME TAX CREDITS.—Payments to individuals made pursuant to provisions of the Internal Revenue Code of 

1986 establishing refundable tax credits shall be exempt from reduction under any order issued under this part.’’. 

(c) OTHER PROGRAMS AND ACTIVITIES, LOW-INCOME PROGRAMS, 

AND ECONOMIC RECOVERY PROGRAMS.—Subsections (g) and (h) of 

section 255 of BBEDCA are amended to read as follows: 

‘‘(g) OTHER PROGRAMS AND ACTIVITIES: 

‘‘(1)(A) The following budget accounts and activities shall 

be exempt from reduction under any order issued under this 

part: 

‘‘Activities resulting from private donations, bequests, or 

voluntary contributions to the Government. 

‘‘Activities financed by voluntary payments to the Government for goods or services to be provided for such payments. 

‘‘Administration of Territories, Northern Mariana Islands 

Covenant grants (14-0412-0-1-808). 

‘‘Advances to the Unemployment Trust Fund and Other 

Funds (16-0327-0-1-600). 

‘‘Black Lung Disability Trust Fund Refinancing (16-0329- 

0-1-601). 

‘‘Bonneville Power Administration Fund and borrowing authority established pursuant to section 13 of Public Law 93-454 

(1974), as amended (89-4045-0-3-271). 

‘‘Claims, Judgments, and Relief Acts (20-1895-0-1-808). 

‘‘Compact of Free Association (14-0415-0-1-808). 

‘‘Compensation of the President (11-0209-01-1-802). 

‘‘Comptroller of the Currency, Assessment Funds (20-8413- 

0-8-373). 

‘‘Continuing Fund, Southeastern Power Administration 

(89-5653-0-2-271). 

‘‘Continuing Fund, Southwestern Power Administration 

(89-5649-0-2-271). 

‘‘Dual Benefits Payments Account (60-0111-0-1-601). 

‘‘Emergency Fund, Western Area Power Administration 

(89-5069-0-2-271). 

‘‘Exchange Stabilization Fund (20-4444-0-3-155). 

‘‘Farm Credit Administration Operating Expenses Fund 

(78-4131-0-3-351). 

‘‘Farm Credit System Insurance Corporation, Farm Credit 

Insurance Fund (78-4171-0-3-351). 

‘‘Federal Deposit Insurance Corporation, Deposit Insurance 

Fund (51-4596-0-4-373). 

‘‘Federal Deposit Insurance Corporation, FSLIC Resolution 

Fund (51-4065-0-3-373). 

‘‘Federal Deposit Insurance Corporation, Noninterest Bearing Transaction Account Guarantee (51-4458-0-3-373). 

‘‘Federal Deposit Insurance Corporation, Senior Unsecured 

Debt Guarantee (51-4457-0-3-373). 

‘‘Federal Home Loan Mortgage Corporation (Freddie Mac). 

‘‘Federal Housing Finance Agency, Administrative Expenses (95-5532-0-2-371). 

‘‘Federal National Mortgage Corporation (Fannie Mae). 
163 Sec. 11 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

‘‘Federal Payment to the District of Columbia Judicial Retirement and Survivors Annuity Fund (20-1713-0-1-752). 

‘‘Federal Payment to the District of Columbia Pension 

Fund (20-1714-0-1-601). 

‘‘Federal Payments to the Railroad Retirement Accounts 

(60-0113-0-1-601). 

‘‘Federal Reserve Bank Reimbursement Fund (20-1884-0-1- 

803). 

‘‘Financial Agent Services (20-1802-0-1-803). 

‘‘Foreign Military Sales Trust Fund (11-8242-0-7-155). 

‘‘Hazardous Waste Management, Conservation Reserve 

Program (12-4336-0-3-999). 

‘‘Host Nation Support Fund for Relocation (97-8337-0-7- 

051). 

‘‘Internal Revenue Collections for Puerto Rico (20-5737-0- 

2-806). 

‘‘Intragovernmental funds, including those from which the 

outlays are derived primarily from resources paid in from other 

government accounts, except to the extent such funds are augmented by direct appropriations for the fiscal year during 

which an order is in effect. 

‘‘Medical Facilities Guarantee and Loan Fund (75-9931-0- 

3-551). 

‘‘National Credit Union Administration, Central Liquidity 

Facility (25-4470-0-3-373). 

‘‘National Credit Union Administration, Corporate Credit 

Union Share Guarantee Program (25-4476-0-3-376). 

‘‘National Credit Union Administration, Credit Union 

Homeowners Affordability Relief Program (25-4473-0-3-371). 

‘‘National Credit Union Administration, Credit Union 

Share Insurance Fund (25-4468-0-3-373). 

‘‘National Credit Union Administration, Credit Union System Investment Program (25-4474-0-3-376). 

‘‘National Credit Union Administration, Operating fund 

(25-4056-0-3-373). 

‘‘National Credit Union Administration, Share Insurance 

Fund Corporate Debt Guarantee Program (25-4469-0-3-376). 

‘‘National Credit Union Administration, U.S. Central Federal Credit Union Capital Program (25-4475-0-3-376). 

‘‘Office of Thrift Supervision (20-4108-0-3-373). 

‘‘Panama Canal Commission Compensation Fund (16-5155- 

0-2-602). 

‘‘Payment of Vietnam and USS Pueblo prisoner-of-war 

claims within the Salaries and Expenses, Foreign Claims Settlement account (15-0100-0-1-153). 

‘‘Payment to Civil Service Retirement and Disability Fund 

(24-0200-0-1-805). 

‘‘Payment to Department of Defense Medicare-Eligible Retiree Health Care Fund (97-0850-0-1-054). 

‘‘Payment to Judiciary Trust Funds (10-0941-0-1-752). 

‘‘Payment to Military Retirement Fund (97-0040-0-1-054). 

‘‘Payment to the Foreign Service Retirement and Disability 

Fund (19-0540-0-1-153). 

‘‘Payments to Copyright Owners (03-5175-0-2-376). 
Sec. 11 STATUTORY PAY–AS–YOU–GO ACT OF 2010 164 

‘‘Payments to Health Care Trust Funds (75-0580-0-1-571). 

‘‘Payment to Radiation Exposure Compensation Trust 

Fund (15-0333-0-1-054). 

‘‘Payments to Social Security Trust Funds (28-0404-0-1- 

651). 

‘‘Payments to the United States Territories, Fiscal Assistance (14-0418-0-1-806). 

‘‘Payments to trust funds from excise taxes or other receipts properly creditable to such trust funds. 

‘‘Payments to widows and heirs of deceased Members of 

Congress (00-0215-0-1-801). 

‘‘Postal Service Fund (18-4020-0-3-372). 

‘‘Radiation Exposure Compensation Trust Fund (15-8116- 

0-1-054). 

‘‘Reimbursement to Federal Reserve Banks (20-0562-0-1- 

803). 

‘‘Salaries of Article III judges. 

‘‘Soldiers and Airmen’s Home, payment of claims (84-8930- 

0-7-705). 

‘‘Tennessee Valley Authority Fund, except nonpower programs and activities (64-4110-0-3-999). 

‘‘Tribal and Indian trust accounts within the Department 

of the Interior which fund prior legal obligations of the Government or which are established pursuant to Acts of Congress regarding Federal management of tribal real property or other fiduciary responsibilities, including but not limited to Tribal 

Special Fund (14-5265-0-2-452), Tribal Trust Fund (14-8030-0- 

7-452), White Earth Settlement (14-2204-0-1-452), and Indian 

Water Rights and Habitat Acquisition (14-5505-0-2-303). 

‘‘United Mine Workers of America 1992 Benefit Plan (95- 

8260-0-7-551). 

‘‘United Mine Workers of America 1993 Benefit Plan (95- 

8535-0-7-551). 

‘‘United Mine Workers of America Combined Benefit Fund 

(95-8295-0-7-551). 

‘‘United States Enrichment Corporation Fund (95-4054-0- 

3-271). 

‘‘Universal Service Fund (27-5183-0-2-376). 

‘‘Vaccine Injury Compensation (75-0320-0-1-551). 

‘‘Vaccine Injury Compensation Program Trust Fund (20- 

8175-0-7-551). 

‘‘(B) The following Federal retirement and disability accounts and activities shall be exempt from reduction under any 

order issued under this part: 

‘‘Black Lung Disability Trust Fund (20-8144-0-7-601). 

‘‘Central Intelligence Agency Retirement and Disability 

System Fund (56-3400-0-1-054). 

‘‘Civil Service Retirement and Disability Fund (24-8135-0- 

7-602). 

‘‘Comptrollers general retirement system (05-0107-0-1- 

801). 

‘‘Contributions to U.S. Park Police annuity benefits, Other 

Permanent Appropriations (14-9924-0-2-303). 
165 Sec. 11 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

‘‘Court of Appeals for Veterans Claims Retirement Fund 

(95-8290-0-7-705). 

‘‘Department of Defense Medicare-Eligible Retiree Health 

Care Fund (97-5472-0-2-551). 

‘‘District of Columbia Federal Pension Fund (20-5511-0-2- 

601). 

‘‘District of Columbia Judicial Retirement and Survivors 

Annuity Fund (20-8212-0-7-602). 

‘‘Energy Employees Occupational Illness Compensation 

Fund (16-1523-0-1-053). 

‘‘Foreign National Employees Separation Pay (97-8165-0-7- 

051). 

‘‘Foreign Service National Defined Contributions Retirement Fund (19-5497-0-2-602). 

‘‘Foreign Service National Separation Liability Trust Fund 

(19-8340-0-7-602). 

‘‘Foreign Service Retirement and Disability Fund (19-8186- 

0-7-602). 

‘‘Government Payment for Annuitants, Employees Health 

Benefits (24-0206-0-1-551). 

‘‘Government Payment for Annuitants, Employee Life Insurance (24-0500-0-1-602). 

‘‘Judicial Officers’’ Retirement Fund (10-8122-0-7-602). 

‘‘Judicial Survivors’’ Annuities Fund (10-8110-0-7-602). 

‘‘Military Retirement Fund (97-8097-0-7-602). 

‘‘National Railroad Retirement Investment Trust (60-8118- 

0-7-601). 

‘‘National Oceanic and Atmospheric Administration retirement (13-1450-0-1-306). 

‘‘Pensions for former Presidents (47-0105-0-1-802). 

‘‘Postal Service Retiree Health Benefits Fund (24-5391-0-2- 

551). 

‘‘Public Safety Officer Benefits (15-0403-0-1-754). 

‘‘Rail Industry Pension Fund (60-8011-0-7-601). 

‘‘Retired Pay, Coast Guard (70-0602-0-1-403). 

‘‘Retirement Pay and Medical Benefits for Commissioned 

Officers, Public Health Service (75-0379-0-1-551). 

‘‘Special Benefits for Disabled Coal Miners (16-0169-0-1- 

601). 

‘‘Special Benefits, Federal Employees’’ Compensation Act 

(16-1521-0-1-600). 

‘‘Special Workers Compensation Expenses (16-9971-0-7- 

601). 

‘‘Tax Court Judges Survivors Annuity Fund (23-8115-0-7- 

602). 

‘‘United States Court of Federal Claims Judges’’ Retirement Fund (10-8124-0-7-602). 

‘‘United States Secret Service, DC Annuity (70-0400-0-1- 

751). 

‘‘Voluntary Separation Incentive Fund (97-8335-0-7-051). 

‘‘(2) Prior legal obligations of the Government in the following budget accounts and activities shall be exempt from any 

order issued under this part: 

‘‘Biomass Energy Development (20-0114-0-1-271). 
Sec. 11 STATUTORY PAY–AS–YOU–GO ACT OF 2010 166 

‘‘Check Forgery Insurance Fund (20-4109-0-3-803). 

‘‘Credit liquidating accounts. 

‘‘Credit reestimates. 

‘‘Employees Life Insurance Fund (24-8424-0-8-602). 

‘‘Federal Aviation Insurance Revolving Fund (69-4120-0-3- 

402). 

‘‘Federal Crop Insurance Corporation Fund (12-4085-0-3- 

351). 

‘‘Federal Emergency Management Agency, National Flood 

Insurance Fund (58-4236-0-3-453). 

‘‘Geothermal resources development fund (89-0206-0-1- 

271). 

‘‘Low-Rent Public Housing—Loans and Other Expenses 

(86-4098-0-3-604). 

‘‘Maritime Administration, War Risk Insurance Revolving 

Fund (69-4302-0-3-403). 

‘‘Natural Resource Damage Assessment Fund (14-1618-0-1- 

302). 

‘‘Overseas Private Investment Corporation, Noncredit Account (71-4184-0-3-151). 

‘‘Pension Benefit Guaranty Corporation Fund (16-4204-0-3- 

601). 

‘‘San Joaquin Restoration Fund (14-5537-0-2-301). 

‘‘Servicemembers’’ Group Life Insurance Fund (36-4009-0- 

3-701). 

‘‘Terrorism Insurance Program (20-0123-0-1-376). 

‘‘(h) Low-income Programs—The following programs shall 

be exempt from reduction under any order issued under this 

part: 

‘‘Academic Competitiveness/Smart Grant Program (91- 

0205-0-1-502). 

‘‘Child Care Entitlement to States (75-1550-0-1-609). 

‘‘Child Enrollment Contingency Fund (75-5551-0-2-551). 

‘‘Child Nutrition Programs (with the exception of special 

milk programs) (12-3539-0-1-605). 

‘‘Children’s Health Insurance Fund (75-0515-0-1-551). 

‘‘Commodity Supplemental Food Program (12-3507-0-1- 

605). 

‘‘Contingency Fund (75-1522-0-1-609). 

‘‘Family Support Programs (75-1501-0-1-609). 

‘‘Federal Pell Grants under section 401 Title IV of the 

Higher Education Act. 

‘‘Grants to States for Medicaid (75-0512-0-1-551). 

‘‘Payments for Foster Care and Permanency (75-1545-0-1- 

609). 

‘‘Supplemental Nutrition Assistance Program (12-3505-0-1- 

605). 

‘‘Supplemental Security Income Program (28-0406-0-1- 

609). 

‘‘Temporary Assistance for Needy Families (75-1552-0-1- 

609).’’. 

(d) Additional Excluded Programs—Section 255 of 

BBEDCA is amended by adding the following after subsection 

(h): 
167 Sec. 13 STATUTORY PAY–AS–YOU–GO ACT OF 2010 

‘‘(i) Economic Recovery Programs—The following programs 

shall be exempt from reduction under any order issued under 

this part: 

‘‘GSE Preferred Stock Purchase Agreements (20-0125-0-1- 

371). 

‘‘Office of Financial Stability (20-0128-0-1-376). 

‘‘Special Inspector General for the Troubled Asset Relief 

Program (20-0133-0-1-76). 

‘‘(j) Split Treatment Programs—Each of the following programs shall be exempt from any order under this part to the 

extent that the budgetary resources of such programs are 

ubject to obligation limitations in appropriations bills: 

‘‘Federal-Aid Highways (69-8083-0-7-401). 

‘‘Highway Traffic Safety Grants (69-8020-0-7-401). 

‘‘Operations and Research NHTSA and National Driver 

Register (69-8016-0-7-401). 

‘‘Motor Carrier Safety Operations and Programs (69-8159- 

0-7-401). 

‘‘Motor Carrier Safety Grants (69-8158-0-7-401). 

‘‘Formula and Bus Grants (69-8350-0-7-401). 

‘‘Grants-In-Aid for Airports (69-8106-0-7-402).’’. 

SEC. 12. ø2 U.S.C. 938¿ DETERMINATIONS AND POINTS OF ORDER. 

Nothing in this title shall be construed as limiting the authority of the chairmen of the Committees on the Budget of the House 

and Senate under section 312 of the Congressional Budget Act of 

1974. CBO may consult with the Chairmen of the House and Senate Budget Committees to resolve any ambiguities in this title. 

SEC. 13. ø2 U.S.C. 939¿ LIMITATION ON CHANGES TO THE SOCIAL SECURITY ACT. 

(a) LIMITATION ON CHANGES TO THE SOCIAL SECURITY ACT.— 

Notwithstanding any other provision of law, it shall not be in order 

in the Senate or the House of Representatives to consider any bill 

or resolution pursuant to any expedited procedure to consider the 

recommendations of a Task Force for Responsible Fiscal Action or 

other commission that contains recommendations with respect to 

the old-age, survivors, and disability insurance program established under title II of the Social Security Act, or the taxes received 

under subchapter A of chapter 9; the taxes imposed by subchapter 

E of chapter 1; and the taxes collected under section 86 of part II 

of subchapter B of chapter 1 of the Internal Revenue Code. 

(b) WAIVER.—This section may be waived or suspended in the 

Senate only by the affirmative vote of three-fifths of the Members, 

duly chosen and sworn. 

(c) APPEALS.—An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required in the 

Senate to sustain an appeal of the ruling of the Chair on a point 

of order raised under this section. 
Sec. 21 STATUTORY PAY–AS–YOU–GO ACT OF 2010 168 

Title II—Elimination of Duplicative and 

Wasteful Spending 

SEC. 21. IDENTIFICATION, CONSOLIDATION, AND ELIMINATION OF DUPLICATIVE GOVERNMENT PROGRAMS. 

The Comptroller General of the Government Accountability Office shall conduct routine investigations to identify programs, agencies, offices, and initiatives with duplicative goals and activities 

within Departments and governmentwide and report annually to 

Congress on the findings, including the cost of such duplication and 

with recommendations for consolidation and elimination to reduce 

duplication identifying specific rescissions. 
169 

BUDGET CONTROL ACT OF 2011 

171 

BUDGET CONTROL ACT OF 2011 

(Public Law 112–25) 

AN ACT To provide for budget control. 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) ø2 U.S.C. 900 note¿ SHORT TITLE.—This Act may be cited 

as the ‘‘Budget Control Act of 2011’’. 

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

as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Severability. 

TITLE I—TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER 

Sec. 101. Enforcing discretionary spending limits. 

Sec. 102. Definitions. 

Sec. 103. Reports and orders. 

Sec. 104. Expiration. 

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

of 1974. 

Sec. 106. Senate budget enforcement. 

TITLE II—VOTE ON THE BALANCED BUDGET AMENDMENT 

Sec. 201. Vote on the balanced budget amendment. 

Sec. 202. Consideration by the other House. 

TITLE III—DEBT CEILING DISAPPROVAL PROCESS 

Sec. 301. Debt ceiling disapproval process. 

Sec. 302. Enforcement of budget goal. 

TITLE IV—JOINT SELECT COMMITTEE ON DEFICIT REDUCTION 

Sec. 401. Establishment of Joint Select Committee. 

Sec. 402. Expedited consideration of joint committee recommendations. 

Sec. 403. Funding. 

Sec. 404. Rulemaking. 

TITLE V—PELL GRANT AND STUDENT LOAN PROGRAM CHANGES 

Sec. 501. Federal Pell grants. 

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

and professional students. 

Sec. 503. Termination of direct loan repayment incentives. 

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

SEC. 2. ø2 U.S.C. 900 note¿ SEVERABILITY. 

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

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

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

person or circumstance shall not be affected. 
Sec. 101 BUDGET CONTROL ACT OF 2011 172 

Title I—Ten-Year Discretionary Caps 

With Sequester 

SEC. 101. ENFORCING DISCRETIONARY SPENDING LIMITS. 

Section 251 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended to read as follows: 

‘‘SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS. 

‘‘(a) ENFORCEMENT.— 

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

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

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

within a category shall be reduced by a dollar amount calculated by multiplying the enacted level of sequestrable budgetary resources in that account at that time by the uniform 

percentage necessary to eliminate a breach within that category. 

‘‘(3) MILITARY PERSONNEL.—If the President uses the authority to exempt any personnel account from sequestration 

under section 255(f), each account within subfunctional category 051 (other than those military personnel accounts for 

which the authority provided under section 255(f) has been exercised) shall be further reduced by a dollar amount calculated 

by multiplying the enacted level of non-exempt budgetary resources in that account at that time by the uniform percentage 

necessary to offset the total dollar amount by which outlays 

are not reduced in military personnel accounts by reason of the 

use of such authority. 

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

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

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

then the dollar sequestration calculated for that account under 

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

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

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

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

enacted, from the amount otherwise provided by the fullyear appropriation for that account. 

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

the fiscal year in progress is enacted that causes a breach 

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

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

year shall be reduced by the amount or amounts of that 

breach. 

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

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

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

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

year (after taking into account any prior sequestration of 

amounts within that category), 15 days later there shall be a 
173 Sec. 101 BUDGET CONTROL ACT OF 2011 

sequestration to eliminate that breach within that category following the procedures set forth in paragraphs (2) through (4). 

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

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

Budget of the House of Representatives and the Senate, 

shall provide OMB with an estimate of the amount of discretionary new budget authority and outlays for the current year, if any, and the budget year provided by that legislation. 

‘‘(B) OMB ESTIMATES AND EXPLANATION OF DIF- FERENCES.—Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any discretionary appropriation, OMB shall 

transmit a report to the House of Representatives and to 

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

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

and the budget year provided by that legislation, and an 

explanation of any difference between the 2 estimates. If 

during the preparation of the report OMB determines that 

there is a significant difference between OMB and CBO, 

OMB shall consult with the Committees on the Budget of 

the House of Representatives and the Senate regarding 

that difference and that consultation shall include, to the 

extent practicable, written communication to those committees that affords such committees the opportunity to 

comment before the issuance of the report. 

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

under this paragraph shall be made using current economic and technical assumptions. OMB shall use the OMB 

estimates transmitted to the Congress under this paragraph. OMB and CBO shall prepare estimates under this 

paragraph in conformance with scorekeeping guidelines 

determined after consultation among the Committees on 

the Budget of the House of Representatives and the Senate, CBO, and OMB. 

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

paragraph, amounts provided by annual appropriations 

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

which funding is provided in that legislation that result 

from previously enacted legislation. 

‘‘(b) ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.— ‘‘(1) CONCEPTS AND DEFINITIONS.—When the President submits the budget under section 1105 of title 31, United States 

Code, OMB shall calculate and the budget shall include adjustments to discretionary spending limits (and those limits as cumulatively adjusted) for the budget year and each outyear to 

reflect changes in concepts and definitions. Such changes shall 

equal the baseline levels of new budget authority and outlays 

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

using the concepts and definitions in effect before such 
Sec. 101 BUDGET CONTROL ACT OF 2011 174 

changes. Such changes may only be made after consultation 

with the Committees on Appropriations and the Budget of the 

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

that affords such committees the opportunity to comment before official action is taken with respect to such changes. 

‘‘(2) SEQUESTRATION REPORTS.—When OMB submits a sequestration report under section 254(e), (f), or (g) for a fiscal 

year, OMB shall calculate, and the sequestration report and 

subsequent budgets submitted by the President under section 

1105(a) of title 31, United States Code, shall include adjustments to discretionary spending limits (and those limits as adjusted) for the fiscal year and each succeeding year, as follows: 

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

fiscal year, appropriations for discretionary accounts are 

enacted that— 

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

the President subsequently so designates, or 

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

on an account by account basis and the President subsequently so designates, 

the adjustment shall be the total of such appropriations in 

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

on Terrorism, as applicable. 

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

amount for continuing disability reviews under titles II 

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

title XVI of the Social Security Act, then the adjustments 

for that fiscal year shall be the additional new budget authority provided in that Act for such expenses for that fiscal year, but shall not exceed— 

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

new budget authority; 

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

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

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

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

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

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

‘‘(VIII) for fiscal year 2019, $1,309,000,000 in additional new budget authority; 
175 Sec. 101 BUDGET CONTROL ACT OF 2011 

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

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

‘‘(ii) As used in this subparagraph— 

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

continuing disability reviews under sections 221(i) and 

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

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

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

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

means the amount provided for a fiscal year, in excess 

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

to pay for the costs of continuing disability reviews 

and redeterminations under the heading ‘Limitation 

on Administrative Expenses’ for the Social Security 

Administration. 

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

(i) If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an 

amount for the health care fraud abuse control program at the Department of Health and Human Services (75-8393-0-7-571), then the adjustments for that 

fiscal year shall be the amount of additional new 

budget authority provided in that Act for such program for that fiscal year, but shall not exceed— 

‘‘(I) for fiscal year 2012, $270,000,000 in additional new budget authority; 

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

‘‘(III) for fiscal year 2014, $329,000,000 in additional new budget authority; 

‘‘(IV) for fiscal year 2015, $361,000,000 in additional new budget authority; 

‘‘(V) for fiscal year 2016, $395,000,000 in additional new budget authority; 

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

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

‘‘(VIII) for fiscal year 2019, $454,000,000 in 

additional new budget authority; 

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

‘‘(X) for fiscal year 2021, $496,000,000 in additional new budget authority. 

‘‘(ii) As used in this subparagraph, the term ‘additional new budget authority’ means the amount provided for a fiscal year, in excess of $311,000,000, in an 

appropriation Act and specified to pay for the costs of 

the health care fraud and abuse control program. 

‘‘(D) DISASTER FUNDING.— 
Sec. 101 BUDGET CONTROL ACT OF 2011 176 

73Major disaster.—‘‘Major disaster’’ means any natural catastrophe (including any hurricane, 

tornado, storm, high water, winddriven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the United States, which in the determination of the President causes 

damage of sufficient severity and magnitude to warrant major disaster assistance under this 

chapter to supplement the efforts and available resources of States, local governments, and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby. 

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

Congress designates as being for disaster relief in statute, the adjustment for a fiscal year shall be the total 

of such appropriations for the fiscal year in discretionary accounts designated as being for disaster relief, but not to exceed the total of— 

‘‘(I) the average funding provided for disaster 

relief over the previous 10 years, excluding the 

highest and lowest years; and 

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

new discretionary budget authority designated as 

being for disaster relief for the preceding fiscal 

year was less than the average as calculated in 

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

‘‘(ii) OMB shall report to the Committees on Appropriations and Budget in each House the average 

calculated pursuant to clause (i)(II), not later than 30 

days after the date of the enactment of the Budget 

Control Act of 2011. 

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

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

Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).73

‘‘(iv) Appropriations considered disaster relief 

under this subparagraph in a fiscal year shall not be 

eligible for adjustments under subparagraph (A) for 

the fiscal year. 

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

term ‘discretionary spending limit’ means— 

‘‘(1) with respect to fiscal year 2012— ‘‘(A) for the security category, $684,000,000,000 in new 

budget authority; and 

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

new budget authority; 

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

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

budget authority; and 

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

new budget authority; 

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

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

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

category, $1,086,000,000,000 in new budget authority; 
177 Sec. 102 BUDGET CONTROL ACT OF 2011 

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 102. DEFINITIONS. 

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

Control Act of 1985 is amended as follows: 

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

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

‘‘(B) The term ‘security category’ includes discretionary appropriations associated with agency budgets for the Department of Defense, the Department of Homeland Security, the 

Department of Veterans Affairs, the National Nuclear Security 

Administration, the intelligence community management account (95-0401-0-1-054), and all budget accounts in budget 

function 150 (international affairs). 

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

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

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

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

paragraph: 

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

years after the budget year.’’. 

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

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

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

new budget authority and the outlays flowing therefrom) 

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

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

‘‘(B) is unanticipated. 

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

situation is— 

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

not building up over time; 

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

need requiring immediate action; 

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

‘‘(D) temporary, which means not of a permanent duration.’’. 
Sec. 103 BUDGET CONTROL ACT OF 2011 178 

SEC. 103. REPORTS AND ORDERS. 

Section 254 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended as follows: 

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

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

also contain a preview estimate of the adjustment for disaster 

funding for the upcoming fiscal year.’’. 

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

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

of the adjustment for disaster funding’’. 

SEC. 104. EXPIRATION. 

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

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

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

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

SEC. 105. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974. 

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

Act of 1974 is amended as follows: 

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

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

a conference report thereon, the chairman of the Committee on the 

Budget of the House of Representatives or the Senate may make 

appropriate budgetary adjustments of new budget authority and 

the outlays flowing therefrom in the same amount as required by 

section 251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985.’’. 

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

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

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

(1) In the House of Representatives, if a reported bill or 

joint resolution, or amendment thereto or conference report 

thereon, contains a provision providing new budget authority 

and outlays or reducing revenue, and a designation of such 

provision as an emergency requirement pursuant to 

251(b)(2)(A) of the Balanced Budget and Emergency Deficit 

Control Act of 1985, the chair of the Committee on the Budget 

of the House of Representatives shall not count the budgetary 

effects of such provision for purposes of title III and title IV of 

the Congressional Budget Act of 1974 and the Rules of the 

House of Representatives. 

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

or joint resolution, or amendment thereto or conference report 

thereon, contains a provision providing new budget authority 

and outlays or reducing revenue, and a designation of such 

provision as an emergency pursuant to paragraph (1), the chair 

of the Committee on the Budget shall not count the budgetary 

effects of such provision for purposes of this title and title IV 

and the Rules of the House of Representatives. 
179 Sec. 106 BUDGET CONTROL ACT OF 2011 

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

strike a designation under subparagraph (A) shall be excluded from an evaluation of budgetary effects for purposes 

of this title and title IV and the Rules of the House of Representatives. 

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

that also proposes to reduce each amount appropriated or 

otherwise made available by the pending measure that is 

not required to be appropriated or otherwise made available shall be in order at any point in the reading of the 

pending measure. 

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

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

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

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

Deficit Control Act to be exceeded.’’. 

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

Impoundment Control Act of 1974 is amended by adding at the end 

the following new paragraph: 

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

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

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

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

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

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

SEC. 106. ø2 U.S.C. 631 note¿ SENATE BUDGET ENFORCEMENT. 

(a) IN GENERAL.— 

(1) For the purpose of enforcing the Congressional Budget 

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

that Act, and enforcing budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, 

and levels set in subsection (b)(1) shall apply in the Senate in 

the same manner as for a concurrent resolution on the budget 

for fiscal year 2012 with appropriate budgetary levels for fiscal 

years 2011 and 2013 through 2021. 

(2) For the purpose of enforcing the Congressional Budget 

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

Act, and enforcing budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, and 

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

same manner as for a concurrent resolution on the budget for 

fiscal year 2013 with appropriate budgetary levels for fiscal 

years 2012 and 2014 through 2022. 

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

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

this section, the Chairman of the Committee on the Budget 

shall file— 

(A) for the Committee on Appropriations, committee 

allocations for fiscal years 2011 and 2012 consistent with 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 
Sec. 106 BUDGET CONTROL ACT OF 2011 180 

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 2011, 

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

baseline adjusted to account for the budgetary effects of 

this Act and legislation enacted prior to this Act but not 

included in the Congressional Budget Office’s March 2011 

baseline, for the purpose of enforcing section 302 of the 

Congressional Budget Act of 1974; 

(C) aggregate spending levels for fiscal years 2011 and 

2012 and aggregate revenue levels for fiscal years 2011, 

2012, 2012 through 2016, 2012 through 2021 consistent 

with the Congressional Budget Office’s March 2011 baseline adjusted to account for the budgetary effects of this 

Act and legislation enacted prior to this Act but not included in the Congressional Budget Office’s March 2011 

baseline, and the discretionary spending limits set forth in 

this Act for the purpose of enforcing section 311 of the 

Congressional Budget Act of 1974; and 

(D) levels of Social Security revenues and outlays for 

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

through 2021 consistent with the Congressional Budget 

Office’s March 2011 baseline adjusted to account for the 

budgetary effects of this Act and legislation enacted prior 

to this Act but not included in the Congressional Budget 

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

sections 302 and 311 of the Congressional Budget Act of 

1974. 

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

Committee on the Budget shall file— 

(A) for the Committee on Appropriations, committee 

allocations for fiscal years 2012 and 2013 consistent with 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 2012, 

2013, 2013 through 2017, and 2013 through 2022 consistent with the Congressional Budget Office’s March 2012 

baseline for the purpose of enforcing section 302 of the 

Congressional Budget Act of 1974; 

(C) aggregate spending levels for fiscal years 2012 and 

2013 and aggregate revenue levels for fiscal years 2012, 

2013, 2013–2017, and 2013–2022 consistent with the Congressional Budget Office’s March 2012 baseline and the 

discretionary spending limits set forth in this Act for the 

purpose of enforcing section 311 of the Congressional 

Budget Act of 1974; and 

(D) levels of Social Security revenues and outlays for 

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

consistent with the Congressional Budget Office’s March 

2012 baseline budget for the purpose of enforcing sections 

302 and 311 of the Congressional Budget Act of 1974. 

(c) SENATE PAY-AS-YOU-GO SCORECARD.— 
181 Sec. 106 BUDGET CONTROL ACT OF 2011 

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

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

Congress), the Chairman of the Senate Committee on the 

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

(2) Not later than April 15, 2012, for the purpose of enforcing section 201 of S. Con. Res. 21 (110th Congress), the Chairman of the Senate Committee on the Budget shall reduce any 

balances of direct spending and revenues for any fiscal year to 

0 (zero). 

(3) Upon resetting the Senate paygo scorecard pursuant to 

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

such action in the Congressional Record. 

(d) FURTHER ADJUSTMENTS.— (1) The Chairman of the Committee on the Budget of the 

Senate may revise any allocations, aggregates, or levels set 

pursuant to this section to account for any subsequent adjustments to discretionary spending limits made pursuant to this 

Act. 

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

set or adjustments made pursuant to this section, sections 412 

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

in effect. 

(e) EXPIRATION.— 

(1) Subsections (a)(1), (b)(1), and (c)(1) shall expire if a concurrent resolution on the budget for fiscal year 2012 is agreed 

to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget Act of 1974. 

(2) Subsections (a)(2), (b)(2), and (c)(2) shall expire if a concurrent resolution on the budget for fiscal year 2013 is agreed 

to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget Act of 1974. 
Sec. 201 BUDGET CONTROL ACT OF 2011 182 

Title II—Vote on the 

Balanced Budget Amendment 

SEC. 201. VOTE ON THE BALANCED BUDGET AMENDMENT. 

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

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

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

‘‘Joint resolution proposing a balanced budget amendment to the 

Constitution of the United States.’’. 

SEC. 202. CONSIDERATION BY THE OTHER HOUSE. 

(a) HOUSE CONSIDERATION.— 

(1) REFERRAL.—If the House receives a joint resolution described in section 201 from the Senate, such joint resolution 

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

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

the committee from further consideration of the joint resolution. Such a motion shall not be in order after the House has 

disposed of a motion to discharge the joint resolution. The previous question shall be considered as ordered on the motion to 

its adoption without intervening motion except twenty minutes 

of debate equally divided and controlled by the proponent and 

an opponent. If such a motion is adopted, the House shall proceed immediately to consider the joint resolution in accordance 

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

the motion is disposed of shall not be in order. 

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

consideration, it shall be in order to move to proceed to consider the joint resolution in the House. Such a motion shall not 

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

with respect to the joint resolution. The previous question shall 

be considered as ordered on the motion to its adoption without 

intervening motion. A motion to reconsider the vote by which 

the motion is disposed of shall not be in order. 

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

and against its consideration are waived. The previous question shall be considered as ordered on the joint resolution to 

its passage without intervening motion except two hours of debate equally divided and controlled by the proponent and an 

opponent and one motion to limit debate on the joint resolution. A motion to reconsider the vote on passage of the joint 

resolution shall not be in order. 

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

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

Senate. If such committee has not reported the joint resolution 

at the close of the fifth session day after its receipt by the Senate, such committee shall be automatically discharged from 
183 Sec. 202 BUDGET CONTROL ACT OF 2011 

further consideration of the joint resolution and it shall be 

placed on the appropriate calendar. 

(2) Consideration of the joint resolution and on all debatable motions and appeals in connection therewith, shall be limited to not more than 20 hours, which shall be divided equally 

between the majority and minority leaders or their designees. 

A motion further to limit debate is in order and not debatable. 

An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order. Any debatable motion or appeal is debatable for not to exceed 1 hour, to be divided equally between those favoring and those opposing the 

motion or appeal. All time used for consideration of the joint 

resolution, including time used for quorum calls and voting, 

shall be counted against the total 20 hours of consideration. 

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

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

before the close of the seventh session day after such joint resolution has been reported or discharged or immediately following the conclusion of consideration of the joint resolution, 

and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate. 
Sec. 301 BUDGET CONTROL ACT OF 2011 184 

Title III—Debt Ceiling Disapproval Process 

SEC. 301. DEBT CEILING DISAPPROVAL PROCESS. 

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

title 31, United States Code, is amended— 

(1) in section 3101(b), by striking ‘‘or otherwise’’ and inserting ‘‘or as provided by section 3101A or otherwise’’; and 

(2) by inserting after section 3101 the following: 

‘‘SEC. 3101A. PRESIDENTIAL MODIFICATION OF THE DEBT CEILING. 

‘‘(a) IN GENERAL.— 

‘‘(1) $900 BILLION.— 

‘‘(A) CERTIFICATION.—If, not later than December 31, 

2011, the President submits a written certification to Congress that the President has determined that the debt subject to limit is within $100,000,000,000 of the limit in section 3101(b) and that further borrowing is required to 

meet existing commitments, the Secretary of the Treasury 

may exercise authority to borrow an additional 

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

Upon submission of such certification, the limit on debt 

provided in section 3101(b) (referred to in this section as 

the ‘debt limit’) is increased by $400,000,000,000. 

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

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

through (f). The joint resolution of disapproval considered 

under this section shall contain only the language provided 

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

without enactment of a joint resolution of disapproval 

under this section, the debt limit is increased by an additional $500,000,000,000. 

‘‘(2) ADDITIONAL AMOUNT.— 

‘‘(A) CERTIFICATION.—If, after the debt limit is increased by $900,000,000,000 under paragraph (1), the 

President submits a written certification to Congress that 

the President has determined that the debt subject to limit 

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

and that further borrowing is required to meet existing 

commitments, the Secretary of the Treasury may, subject 

to the enactment of a joint resolution of disapproval enacted pursuant to this section, exercise authority to borrow 

an additional amount equal to— 

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

applies; 

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

United States has submitted to the States for their 

ratification a proposed amendment to the Constitution 

of the United States pursuant to a joint resolution entitled ‘Joint resolution proposing a balanced budget 

amendment to the Constitution of the United States’; 

or 
185 Sec. 301 BUDGET CONTROL ACT OF 2011 

‘‘(iii) if a joint committee bill to achieve an amount greater than $1,200,000,000,000 in deficit reduction as 

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

Control Act of 2011 is enacted, an amount equal to the 

amount of that deficit reduction, but not greater than 

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

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

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

through (f). The joint resolution of disapproval considered 

under this section shall contain only the language provided 

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

without enactment of a joint resolution of disapproval 

under this section, the debt limit is increased by the 

amount authorized under subparagraph (A). 

‘‘(b) JOINT RESOLUTION OF DISAPPROVAL.— ‘‘(1) IN GENERAL.—Except for the $400,000,000,000 increase in the debt limit provided by subsection (a)(1)(A), the 

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

calendar days after the date on which Congress receives a certification described in subsection (a)(1) or within 15 calendar 

days after Congress receives the certification described in subsection (a)(2) (regardless of whether Congress is in session), 

there is enacted into law a joint resolution disapproving the 

President’s exercise of authority with respect to such additional 

amount. 

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

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

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

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

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

on which the Senate is in session); and 

‘‘(ii) for the certification described in subsection 

(a)(2), that is introduced between the date the certification is received and 3 calendar days after that date; 

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

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

of authority to increase the debt limit, as submitted under 

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

llllll’ (with the blank containing the date of such 

submission); and 

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

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

exercised pursuant to the certification under section 

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

‘‘(c) EXPEDITED CONSIDERATION IN HOUSE OF REPRESENTATIVES.— 

‘‘(1) RECONVENING.—Upon receipt of a certification described in subsection (a)(2), the Speaker, if the House would 

otherwise be adjourned, shall notify the Members of the House 

that, pursuant to this section, the House shall convene not 
Sec. 301 BUDGET CONTROL ACT OF 2011 186 

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

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

House of Representatives to which a joint resolution is referred 

shall report it to the House without amendment not later than 

5 calendar days after the date of introduction of a joint resolution described in subsection (a). If a committee fails to report 

the joint resolution within that period, the committee shall be 

discharged from further consideration of the joint resolution 

and the joint resolution shall be referred to the appropriate 

calendar. 

‘‘(3) PROCEEDING TO CONSIDERATION.—After each committee authorized to consider a joint resolution reports it to the 

House or has been discharged from its consideration, it shall 

be in order, not later than the sixth day after introduction of 

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

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

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

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

a joint resolution addressing a particular submission. The previous question shall be considered as ordered on the motion to 

its adoption without intervening motion. The motion shall not 

be debatable. A motion to reconsider the vote by which the motion is disposed of shall not be in order. 

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

and against its consideration are waived. The previous question shall be considered as ordered on the joint resolution to 

its passage without intervening motion except two hours of debate equally divided and controlled by the proponent and an 

opponent. A motion to reconsider the vote on passage of the 

joint resolution shall not be in order. 

‘‘(d) EXPEDITED PROCEDURE IN SENATE.— 

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

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

more than 2 days, the majority leader of the Senate, after consultation with the minority leader of the Senate, shall notify 

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

Senate shall convene not later than the second calendar day 

after receipt of such message. 

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

Senate, the joint resolution shall be immediately placed on the 

calendar. 

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

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

during the period beginning on the day after the date on 

which Congress receives a certification under subsection 

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

ending on September 14, 2011, and for the certification described in subsection (a)(2), on the 6th day after the date 

on which Congress receives a certification under subsection (a) (even though a previous motion to the same effect has been disagreed to) to move to proceed to the con-
187 Sec. 301 BUDGET CONTROL ACT OF 2011 

sideration of the joint resolution, and all points of order 

against the joint resolution (and against consideration of 

the joint resolution) are waived. The motion to proceed is 

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

postpone. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If 

a motion to proceed to the consideration of the resolution 

is agreed to, the joint resolution shall remain the unfinished business until disposed of. 

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

hours, which shall be divided equally between the majority 

and minority leaders or their designees. A motion further 

to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed 

to the consideration of other business, or a motion to recommit the joint resolution is not in order. 

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

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

joint resolution shall occur immediately following the conclusion of consideration of the joint resolution, and a single 

quorum call at the conclusion of the debate if requested in 

accordance with the rules of the Senate. 

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

from the decisions of the Chair relating to the application 

of the rules of the Senate, as the case may be, to the procedure relating to a joint resolution shall be decided without 

debate. 

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

amendment in either the House of Representatives or the Senate. 

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

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

one House receives from the other a joint resolution— 

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

be referred to a committee; and 

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

same as if no joint resolution had been received from the 

other House until the vote on passage, when the joint resolution received from the other House shall supplant the 

joint resolution of the receiving House. 

‘‘(2) TREATMENT OF JOINT RESOLUTION OF OTHER HOUSE.— If the Senate fails to introduce or consider a joint resolution 

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

entitled to expedited floor procedures under this section. 

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

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

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

‘‘(4) CONSIDERATION AFTER PASSAGE.— 

(A) If Congress passes a joint resolution, the period beginning on the date the President is presented with the 

joint resolution and ending on the date the President 
Sec. 301 BUDGET CONTROL ACT OF 2011 188 

signs, allows to become law without his signature, or vetoes and returns the joint resolution (but excluding days 

when either House is not in session) shall be disregarded 

in computing the appropriate calendar day period described in subsection (b)(1). 

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

this section shall be 1 hour equally divided between the 

majority and minority leaders or their designees. 

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

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

veto of the joint resolution with respect to authority exercised 

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

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

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

‘‘(6) SEQUESTRATION.— 

(A) If within the 50-calendar day period described in 

subsection (b)(1), the President signs the joint resolution, 

the President allows the joint resolution to become law 

without his signature, or Congress overrides a veto of the 

joint resolution with respect to authority exercised pursuant to paragraph (1) of subsection (a), there shall be a sequestration to reduce spending by $400,000,000,000. OMB 

shall implement the sequestration forthwith. 

‘‘(B) OMB shall implement each half of such sequestration in accordance with section 255, section 256, and 

subsections (c), (d), (e), and (f) of section 253 of the Balanced Budget and Emergency Deficit Control Act of 1985, 

and for the purpose of such implementation the term ‘excess deficit’ means the amount specified in subparagraph 

(A). 

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

subsection and subsections (b), (c), (d), (e), and (f) (other than paragraph (6)) are enacted by Congress— 

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

and House of Representatives, respectively, and as such it is 

deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in 

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

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

rules; and 

‘‘(2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to 

the same extent as in the case of any other rule of that 

House.’’. 

(b) CONFORMING AMENDMENT.—The table of sections for chapter 31 of title 31, United States Code, is amended by inserting after 

the item relating to section 3101 the following new item: 

‘‘3101A. Presidential modification of the debt ceiling.’’. 
189 Sec. 302 BUDGET CONTROL ACT OF 2011 

SEC. 302. ENFORCEMENT OF BUDGET GOAL. 

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

Control Act of 1985 is amended by inserting after section 251 the 

following new section: 

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

‘‘Unless a joint committee bill achieving an amount greater than $1,200,000,000,000 in deficit reduction as provided in section 

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

January 15, 2012, the discretionary spending limits listed in section 251(c) shall be revised, and discretionary appropriations and 

direct spending shall be reduced, as follows: 

‘‘(1) REVISED SECURITY CATEGORY; REVISED NONSECURITY

CATEGORY.—(A) The term ‘revised security category’ means discretionary appropriations in budget function 050. 

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

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

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

‘‘(A) For fiscal year 2013— ‘‘(i) for the security category, $546,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $501,000,000,000 

in budget authority. 

‘‘(B) For fiscal year 2014— ‘‘(i) for the security category, $556,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $510,000,000,000 

in budget authority. 

‘‘(C) For fiscal year 2015— ‘‘(i) for the security category, $566,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $520,000,000,000 

in budget authority. 

‘‘(D) For fiscal year 2016— ‘‘(i) for the security category, $577,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $530,000,000,000 

in budget authority. 

‘‘(E) For fiscal year 2017— ‘‘(i) for the security category, $590,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $541,000,000,000 

in budget authority. 

‘‘(F) For fiscal year 2018— ‘‘(i) for the security category, $603,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $553,000,000,000 

in budget authority. 

‘‘(G) For fiscal year 2019— ‘‘(i) for the security category, $616,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $566,000,000,000 

in budget authority. 
Sec. 302 BUDGET CONTROL ACT OF 2011 190 

‘‘(H) For fiscal year 2020— ‘‘(i) for the security category, $630,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $578,000,000,000 

in budget authority. 

‘‘(I) For fiscal year 2021— ‘‘(i) for the security category, $644,000,000,000 in 

budget authority; and ‘‘(ii) for the nonsecurity category, $590,000,000,000 

in budget authority. 

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

shall calculate the amount of the deficit reduction required by 

this section for each of fiscal years 2013 through 2021 by— ‘‘(A) starting with $1,200,000,000,000; 

‘‘(B) subtracting the amount of deficit reduction 

achieved by the enactment of a joint committee bill, as provided in section 401(b)(3)(B)(i)(II) of the Budget Control 

Act of 2011; 

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

for debt service; and 

‘‘(D) dividing the result by 9. 

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

fiscal year 2013, and in its sequestration preview report for fiscal years 2014 through 2021 pursuant to section 254(c), OMB 

shall allocate half of the total reduction calculated pursuant to 

paragraph (3) for that year to discretionary appropriations and 

direct spending accounts within function 050 (defense function) 

and half to accounts in all other functions (nondefense functions). 

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

the reductions to discretionary appropriations and direct 

spending for each of fiscal years 2013 through 2021 for defense 

function spending as follows: 

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

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

‘‘(ii) multiplying by the discretionary spending 

limit for the revised security category for that year; 

and 

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

spending limit for the security category and OMB’s 

baseline estimate of nonexempt outlays for direct 

spending programs within the defense function for 

that year. 

‘‘(B) DIRECT SPENDING.—OMB shall calculate the reduction to direct spending by taking the total reduction for 

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

‘‘(6) NONDEFENSE FUNCTION REDUCTION.—OMB shall calculate the reduction to discretionary appropriations and to direct spending for each of fiscal years 2013 through 2021 for 

programs in nondefense functions as follows: 
191 Sec. 302 BUDGET CONTROL ACT OF 2011 

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

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

‘‘(ii) multiplying by the discretionary spending 

limit for the revised nonsecurity category for that 

year; and 

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

spending limit for the revised nonsecurity category 

and OMB’s baseline estimate of nonexempt outlays for 

direct spending programs in nondefense functions for 

that year. 

‘‘(B) DIRECT SPENDING.—OMB shall calculate the reduction to direct spending programs by taking the total reduction for nondefense functions required for that year 

under paragraph (4) and subtracting the discretionary reduction calculated pursuant to subparagraph (A). 

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

year 2013, OMB shall calculate and the President shall 

order a sequestration, effective upon issuance and under 

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

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

baseline level of budgetary resources in that account at 

that time by a uniform percentage necessary to achieve— 

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

equal to the defense function discretionary reduction 

calculated pursuant to paragraph (5); and 

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

amount equal to the nondefense function discretionary 

reduction calculated pursuant to paragraph (6). 

‘‘(B) FISCAL YEARS 2014–2021.—On the date of the submission of its sequestration preview report for fiscal years 

2014 through 2021 pursuant to section 254(c) for each of 

fiscal years 2014 through 2021, OMB shall reduce the discretionary spending limit— 

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

amount of the defense function discretionary reduction 

calculated pursuant to paragraph (5); and 

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

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

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

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

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

achieve the direct spending reduction calculated pursuant to 

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

of direct spending pursuant to this paragraph, OMB shall follow the procedures specified in section 6 of the Statutory PayAs-You-Go Act of 2010, the exemptions specified in section 255, 

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

percentage reduction for the Medicare programs specified in 
Sec. 302 BUDGET CONTROL ACT OF 2011 192 

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

year. 

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

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

the reduction for all other discretionary appropriations and direct spending under paragraph (6) by a uniform percentage to 

a level sufficient to achieve the reduction required by paragraph (6) in the non-defense function. 

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

imposed under this section shall be implemented in accordance 

with section 256(k). 

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

OMB shall submit a report to Congress containing information 

about the calculations required under this section, the adjusted 

discretionary spending limits, a listing of the reductions required for each nonexempt direct spending account, and any 

other data and explanations that enhance public understanding of this title and actions taken under it.’’. 

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

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

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

to section 251 the following: 

‘‘Sec. 251A. Enforcement of budget goal.’’. 
193 Sec. 401 BUDGET CONTROL ACT OF 2011 

Title IV—Joint Select Committee on 

Deficit Reduction 

SEC. 401. ø2 U.S.C. 900 note¿ ESTABLISHMENT OF JOINT SELECT COMMITTEE. 

(a) DEFINITIONS.—In this title: 

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

the Joint Select Committee on Deficit Reduction established 

under subsection (b)(1). 

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

bill’’ means a bill consisting of the proposed legislative language of the joint committee recommended under subsection 

(b)(3)(B) and introduced under section 402(a). 

(b) ESTABLISHMENT OF JOINT SELECT COMMITTEE.— 

(1) ESTABLISHMENT.—There is established a joint select 

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

(2) GOAL.—The goal of the joint committee shall be to reduce the deficit by at least $1,500,000,000,000 over the period 

of fiscal years 2012 to 2021. 

(3) DUTIES.— 

(A) IN GENERAL.— 

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

FISCAL IMBALANCE.—The joint committee shall provide 

recommendations and legislative language that will 

significantly improve the short-term and long-term fiscal imbalance of the Federal Government. 

(ii) RECOMMENDATIONS OF COMMITTEES.—Not later 

than October 14, 2011, each committee of the House of 

Representatives and the Senate may transmit to the 

joint committee its recommendations for changes in 

law to reduce the deficit consistent with the goal described in paragraph (2) for the joint committee’s consideration. 

(B) REPORT, RECOMMENDATIONS, AND LEGISLATIVE LANGUAGE.— 

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

2011, the joint committee shall vote on— 

(I) a report that contains a detailed statement 

of the findings, conclusions, and recommendations 

of the joint committee and the estimate of the 

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

(II) proposed legislative language to carry out 

such recommendations as described in subclause 

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

reduction achieved by the legislation over the period of fiscal years 2012 to 2021. 

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

the report or legislative language shall be considered 

to be merely advisory. 
Sec. 401 BUDGET CONTROL ACT OF 2011 194 

74The Majority Leader of the Senate, Senator Harry Read of Nevada, appointed the following 

Senators: Senator Patty Murray of Washington; Senator Max Baucus of Montana; Senator John 

Kerry of Massachusetts. 75The Minority Leader of the Senate, Senator Mitch McConnell of Kentucky, appointed the 

following Senators: Senator John Kyl of Arizona; Senator Rob Portman of Ohio; Senator Pat 

Toomey of Pennsylvania. 

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

proposed legislative language described in clause (i) 

shall require the approval of a majority of the members of the joint committee. 

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

committee who gives notice of an intention to file supplemental, minority, or additional views at the time of 

final joint committee vote on the approval of the report 

and legislative language under clause (ii) shall be entitled to 3 calendar days in which to file such views in 

writing with the staff director of the joint committee. 

Such views shall then be included in the joint committee report and printed in the same volume, or part 

thereof, and their inclusion shall be noted on the cover 

of the report. In the absence of timely notice, the joint 

committee report may be printed and transmitted immediately without such views. 

(iv) TRANSMISSION OF REPORT AND LEGISLATIVE

LANGUAGE.—If the report and legislative language are 

approved by the joint committee pursuant to clause 

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

committee shall submit the joint committee report and 

legislative language described in clause (i) to the 

President, the Vice President, the Speaker of the 

House of Representatives, and the majority and minority Leaders of each House of Congress. 

(v) REPORT AND LEGISLATIVE LANGUAGE TO BE

MADE PUBLIC.—Upon the approval or disapproval of 

the joint committee report and legislative language 

pursuant to clause (ii), the joint committee shall 

promptly make the full report and legislative language, and a record of the vote, available to the public. 

(4) MEMBERSHIP.— 

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

(B). 

(B) APPOINTMENT.—Members of the joint committee 

shall be appointed as follows: 

(i) The majority leader of the Senate shall appoint 

three members from among Members of the Senate.74

(ii) The minority leader of the Senate shall appoint three members from among Members of the Senate.75
195 Sec. 401 BUDGET CONTROL ACT OF 2011 

76The Speaker of the House of Representatives, Representative John Boehner of Ohio, appointed the following Members: Representative Jeb Hensarling of Texas; Representative Fred 

Upton of Michigan; Representative Dave Camp of Michigan. 77The Minority Leader of the House of Representatives, Representative Nancy Pelosi of California, appointed the following Members: Representative Xavier Becerra of California; Representative Jim Clyburn of South California; Representative Chris Van Hollen of Maryland. 78The Majority Leader of the Senate, Senator Harry Read of Nevada, appointed Senator Patty 

Murray of Washington as Co-Chair of the Select Committee on Deficit Reduction. 79The Speaker of the House of Representatives, Representative John Boehner of Ohio, appointed Representative Jeb Hensarling (TX), as Co-Chair of the Select Committee on Deficit Reduction. 

(iii) The Speaker of the House of Representatives 

shall appoint three members from among Members of 

the House of Representatives.76

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

Members of the House of Representatives.77

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

the joint committee. The majority leader of the Senate 

shall appoint one Co-Chair from among the members 

of the joint committee.78 The Speaker of the House of 

Representatives shall appoint the second Co-Chair 

from among the members of the joint committee.79

The Co-Chairs shall be appointed not later than 14 

calendar days after the date of enactment of this Act. 

(ii) STAFF DIRECTOR.—The Co-Chairs, acting jointly, shall hire the staff director of the joint committee. 

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

appointed not later than 14 calendar days after the date 

of enactment of this Act. 

(E) PERIOD OF APPOINTMENT.—Members shall be appointed for the life of the joint committee. Any vacancy in 

the joint committee shall not affect its powers, but shall be 

filled not later than 14 calendar days after the date on 

which the vacancy occurs, in the same manner as the 

original designation was made. If a member of the joint 

committee ceases to be a Member of the House of Representatives or the Senate, as the case may be, the member is no longer a member of the joint committee and a vacancy shall exist. 

(5) ADMINISTRATION.— 

(A) IN GENERAL.—To enable the joint committee to exercise its powers, functions, and duties, there are authorized to be disbursed by the Senate the actual and necessary expenses of the joint committee approved by the cochairs, subject to the rules and regulations of the Senate. 

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

committee is authorized to incur expenses in the same 

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

79–304 (15 U.S.C. 1024 (d)). 

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

shall constitute a quorum for purposes of voting, meeting, 

and holding hearings. 

(D) VOTING.— 
Sec. 401 BUDGET CONTROL ACT OF 2011 196 

(i) PROXY VOTING.—No proxy voting shall be allowed on behalf of the members of the joint committee. 

(ii) CONGRESSIONAL BUDGET OFFICE ESTIMATES.— The Congressional Budget Office shall provide estimates of the legislation (as described in paragraph 

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

the Congressional Budget Act of 1974 (2 U.S.C. 639(a) 

and 601(f))(including estimates of the effect of interest 

payment on the debt). In addition, the Congressional 

Budget Office shall provide information on the budgetary effect of the legislation beyond the year 2021. 

The joint committee may not vote on any version of 

the report, recommendations, or legislative language 

unless such estimates are available for consideration 

by all members of the joint committee at least 48 

hours prior to the vote as certified by the Co-Chairs. 

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

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

committee shall hold its first meeting. 

(ii) AGENDA.—The Co-Chairs of the joint committee shall provide an agenda to the joint committee 

members not less than 48 hours in advance of any 

meeting. 

(F) HEARINGS.— 

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

purpose of carrying out this section, hold such hearings, sit and act at such times and places, require attendance of witnesses and production of books, papers, 

and documents, take such testimony, receive such evidence, and administer such oaths as the joint committee considers advisable. 

(ii) HEARING PROCEDURES AND RESPONSIBILITIES

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

joint committee shall make a public announcement of the date, place, time, and subject matter 

of any hearing to be conducted, not less than 7 

days in advance of such hearing, unless the CoChairs determine that there is good cause to begin 

such hearing at an earlier date. 

(II) WRITTEN STATEMENT.—A witness appearing before the joint committee shall file a written 

statement of proposed testimony at least 2 calendar days before the appearance of the witness, 

unless the requirement is waived by the CoChairs, following their determination that there is 

good cause for failure to comply with such requirement. 

(G) TECHNICAL ASSISTANCE.—Upon written request of 

the Co-Chairs, a Federal agency shall provide technical assistance to the joint committee in order for the joint committee to carry out its duties. 

(c) STAFF OF JOINT COMMITTEE.— 
197 Sec. 402 BUDGET CONTROL ACT OF 2011 

80The Joint Select Committee on Deficit Reduction established by the Budget Control Act of 

2011 ended on January 31, 2012. 

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

may jointly appoint and fix the compensation of staff as they 

deem necessary, within the guidelines for employees of the 

Senate and following all applicable rules and employment requirements of the Senate. 

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

who serve in the House of Representatives shall be governed 

by the ethics rules and requirements of the House. Members 

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

joint committee shall comply with the ethics rules of the Senate. 

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

January 31, 2012.80

SEC. 402. ø2 U.S.C. 900 note¿ EXPEDITED CONSIDERATION OF JOINT 

COMMITTEE RECOMMENDATIONS. 

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

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

pursuant to section 401(b)(3)(B)(iv) shall be introduced in the Senate (by request) on the next day on which the Senate is in session 

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

designated by the majority leader of the Senate and shall be introduced in the House of Representatives (by request) on the next legislative day by the majority leader of the House or by a Member 

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

(b) CONSIDERATION IN THE HOUSE OF REPRESENTATIVES.— 

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

House of Representatives to which the joint committee bill is 

referred shall report it to the House without amendment not 

later than December 9, 2011. If a committee fails to report the 

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

move that the House discharge the committee from further 

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

after the last committee authorized to consider the bill reports 

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

discharge the bill. The previous question shall be considered as 

ordered on the motion to its adoption without intervening motion except 20 minutes of debate equally divided and controlled 

by the proponent and an opponent. If such a motion is adopted, 

the House shall proceed immediately to consider the joint committee bill in accordance with paragraphs (2) and (3). A motion 

to reconsider the vote by which the motion is disposed of shall 

not be in order. 

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

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

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

to consider the joint committee bill in the House. Such a motion shall not be in order after the House has disposed of a motion to proceed with respect to the joint committee bill. The 

previous question shall be considered as ordered on the motion 

to its adoption without intervening motion. A motion to recon-
Sec. 402 BUDGET CONTROL ACT OF 2011 198 

81 A Joint Committee bill was not voted on before December 23, 2011. 82 A Joint Committee bill was not voted on before December 9, 2011. 

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

in order. 

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

bill and against its consideration are waived. The previous 

question shall be considered as ordered on the joint committee 

bill to its passage without intervening motion except 2 hours 

of debate equally divided and controlled by the proponent and 

an opponent and one motion to limit debate on the joint committee bill. A motion to reconsider the vote on passage of the 

joint committee bill shall not be in order. 

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

committee bill shall occur not later than December 23, 2011.81

(c) EXPEDITED PROCEDURE IN THE SENATE.— (1) COMMITTEE CONSIDERATION.—A joint committee bill introduced in the Senate under subsection (a) shall be jointly referred to the committee or committees of jurisdiction, which 

committees shall report the bill without any revision and with 

a favorable recommendation, an unfavorable recommendation, 

or without recommendation, not later than December 9, 

2011.82 If any committee fails to report the bill within that period, that committee shall be automatically discharged from 

consideration of the bill, and the bill shall be placed on the appropriate calendar. 

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

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

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

is reported or discharged from all committees to which it was 

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

leader’s designee to move to proceed to the consideration of the 

joint committee bill. It shall also be in order for any Member 

of the Senate to move to proceed to the consideration of the 

joint committee bill at any time after the conclusion of such 2- 

day period. A motion to proceed is in order even though a previous motion to the same effect has been disagreed to. All 

points of order against the motion to proceed to the joint committee bill are waived. The motion to proceed is not debatable. 

The motion is not subject to a motion to postpone. A motion 

to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the 

consideration of the joint committee bill is agreed to, the joint 

committee bill shall remain the unfinished business until disposed of. 

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

committee bill and against consideration of the joint committee 

bill are waived. Consideration of the joint committee bill and 

of all debatable motions and appeals in connection therewith 

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

equally between the Majority and Minority Leaders or their 

designees. A motion further to limit debate on the joint committee bill is in order, shall require an affirmative vote of 
199 Sec. 402 BUDGET CONTROL ACT OF 2011 

three-fifths of the Members duly chosen and sworn, and is not 

debatable. Any debatable motion or appeal is debatable for not 

to exceed 1 hour, to be divided equally between those favoring 

and those opposing the motion or appeal. All time used for consideration of the joint committee bill, including time used for 

quorum calls and voting, shall be counted against the total 30 

hours of consideration. 

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

the consideration of other business, or a motion to recommit 

the joint committee bill, is not in order. 

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

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

committee bill shall occur immediately following the conclusion 

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

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

passage of the joint committee bill shall occur not later than 

December 23, 2011. 

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

the decisions of the Chair relating to the application of the 

rules of the Senate, as the case may be, to the procedure relating to a joint committee bill shall be decided without debate. 

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

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

(e) CONSIDERATION BY THE OTHER HOUSE.— 

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

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

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

not be referred to a committee; and 

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

same as if no joint committee bill had been received from 

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

committee bill received from the other House shall supplant the joint committee bill of the receiving House. 

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

the House of Representatives if the joint committee bill received from the Senate is a revenue measure. 

(f) RULES TO COORDINATE ACTION WITH OTHER HOUSE.— 

(1) TREATMENT OF JOINT COMMITTEE BILL OF OTHER

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

committee bill under this section, the joint committee bill of 

the House shall be entitled to expedited floor procedures under 

this section. 

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

the Senate then receives the joint committee bill from the 

House of Representatives, the House-passed joint committee 

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

committee bill in the Senate shall be considered to be the vote 

on passage of the joint committee bill received from the House 

of Representatives. 

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

bill, debate on a veto message in the Senate under this section 
Sec. 403 BUDGET CONTROL ACT OF 2011 200 

shall be 1 hour equally divided between the majority and minority leaders or their designees. 

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

cease to apply to the joint committee bill if— 

(1) the joint committee fails to vote on the report or proposed legislative language required under section 

401(b)(3)(B)(i) not later than November 23, 2011; or 

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

later than December 23, 2011. 

SEC. 403. ø2 U.S.C. 900 note¿ FUNDING. 

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

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

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

regulations of the Senate. 

SEC. 404. ø2 U.S.C. 900 note¿ RULEMAKING. 

The provisions of this title are enacted by Congress— 

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

Representatives and the Senate, respectively, and as such they 

shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and 

such rules shall supersede other rules only to the extent that 

they are inconsistent therewith; and 

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

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

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

in the case of any other rule of such House. 
201 Sec. 503 BUDGET CONTROL ACT OF 2011 

Title V—Pell Grant and Student 

Loan Program Changes 

SEC. 501. FEDERAL PELL GRANTS. 

Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 (20 

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

(1) in subclause (II), by striking ‘‘$3,183,000,000’’ and inserting ‘‘$13,183,000,000’’; and 

(2) in subclause (III), by striking ‘‘$0’’ and inserting 

‘‘$7,000,000,000’’. 

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

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

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

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

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

notwithstanding any provision of this part or part B, for 

any period of instruction beginning on or after July 1, 

2012— 

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

eligible to receive a Federal Direct Stafford loan under 

this part; and 

‘‘(ii) the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may 

borrow in any academic year (as defined in section 

481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under section 428H, plus an amount equal to the amount of 

Federal Direct Stafford loans the student would have 

received in the absence of this subparagraph. 

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

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

SEC. 503. TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES. 

Section 455(b)(8) of the Higher Education Act of 1965 (20 

U.S.C. 1087e(b)(8)) is amended— 

(1) in subparagraph (A)— 

(A) by amending the header to read as follows: ‘‘(A) IN- CENTIVES FOR LOANS DISBURSED BEFORE JULY 1, 2012.—’’; 

AND

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

first disbursement of principal is made before July 1, 

2012,’’ after ‘‘of this part’’; 

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

for which the first disbursement of principal is made before 

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

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

‘‘(C) NO REPAYMENT INCENTIVES FOR NEW LOANS DISBURSED ON OR AFTER JULY 1, 2012.—Notwithstanding any 
Sec. 504 BUDGET CONTROL ACT OF 2011 202 

other provision of this part, the Secretary is prohibited 

from authorizing or providing any repayment incentive not 

otherwise authorized under this part to encourage on-time 

repayment of a loan under this part for which the first disbursement of principal is made on or after July 1, 2012, 

including any reduction in the interest or origination fee 

rate paid by a borrower of such a loan, except that the Secretary may provide for an interest rate reduction for a borrower who agrees to have payments on such a loan automatically electronically debited from a bank account.’’. 

SEC. 504. ø20 U.S.C. 1089 note¿ INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING AND MASTER CALENDAR EXCEPTION. 

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

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

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

Approved August 2, 2011. 

LEGISLATIVE HISTORY—S. 365

CONGRESSIONAL RECORD, VOL. 157 (2011): 

Feb. 17, considered and passed Senate. 

Aug. 1, considered and passed House, amended. 

Aug. 2, Senate concurred in House amendment. 
203 

TITLE 31 OF THE UNITED STATES CODE 

205 

TITLE 31 OF THE UNITED STATES CODE 

CHAPTER 11—THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

Sec. 1101. Definitions. 

Sec. 1102. Fiscal year. 

Sec. 1103. Budget ceiling. 

Sec. 1104. Budget and appropriations authority of the President. 

Sec. 1105. Budget contents and submission to Congress. 

Sec. 1106. Supplemental budget estimates and changes. 

Sec. 1107. Deficiency and supplemental appropriations. 

Sec. 1108. Preparation and submission of appropriations requests to the President. 

Sec. 1109. Current programs and activities estimates. 

Sec. 1110. Year-ahead requests for authorizing legislation. 

Sec. 1111. Improving economy and efficiency. 

Sec. 1112. Fiscal, budget, and program information. 

Sec. 1113. Congressional information. 

Sec. 1115. Federal Government and agency performance plans. 

Sec. 1116. Agency performance reporting. 

Sec. 1117. Exemptions. 

Sec. 1118. Pilot projects for performance goals. 

Sec. 1119. Pilot projects for performance budgeting. 

Sec. 1120. Federal Government and agency priority goals. 

Sec. 1121. Quarterly priority progress reviews and use of performance information. 

Sec. 1122. Transparency of programs, priority goals, and results. 

Sec. 1123. Chief Operating Officers. 

Sec. 1124. Performance Improvement Officers and the Performance Improvement 

Council. 

Sec. 1125. Elimination of unnecessary agency reporting. 

CHAPTER 13 OF TITLE 31, UNITED STATES CODE

§1341. Limitations on expending and obligating amounts. 

§1342. Limitation on voluntary services. 

CHAPTER 15 OF TITLE 31, UNITED STATES CODE

§1517. Prohibited obligations and expenditures. 

CHAPTER 31 OF TITLE 31, UNITED STATES CODE

§3101. Public debt limit. 

§3101A. Presidential modification of the debt ceiling. 

CHAPTER 33 OF TITLE 31, UNITED STATES CODE

§3321. Disbursing authority in the executive branch. 

TITLE 31—MONEY AND FINANCE

SUBTITLE II—THE BUDGET PROCESS 

CHAPTER 11—THE BUDGET AND FISCAL, BUDGET, AND PROGRAM

INFORMATION

SEC. 1101. DEFINITIONS. 

In this chapter— 

(1) ‘‘agency’’ includes the District of Columbia government 

but does not include the legislative branch or the Supreme 

Court. 
Sec. 1102 TITLE 31 OF THE UNITED STATES CODE 206 

(2) ‘‘appropriations’’ means appropriated amounts and includes, in appropriate context— 

(A) funds; 

(B) authority to make obligations by contract before 

appropriations; and 

(C) other authority making amounts available for obligation or expenditure. 

SEC. 1102. FISCAL YEAR. 

The fiscal year of the Treasury begins on October 1 of each 

year and ends on September 30 of the following year. Accounts of 

receipts and expenditures required under law to be published each 

year shall be published for the fiscal year. 

SEC. 1103. BUDGET CEILING. 

Congress reaffirms its commitment that budget outlays of the 

United States Government for a fiscal year may be not more than 

the receipts of the Government for that year. 

SEC. 1104. BUDGET AND APPROPRIATIONS AUTHORITY OF THE PRESIDENT. 

(a) The President shall prepare budgets of the United States 

Government under section 1105 of this title and proposed deficiency and supplemental appropriations under section 1107 of this 

title. To the extent practicable, the President shall use uniform 

terms in stating the purposes and conditions of appropriations. 

(b) Except as provided in this chapter, the President shall prescribe the contents and order of statements in the budget on expenditures and estimated expenditures and statements on proposed 

appropriations and information submitted with the budget and proposed appropriations. The President shall include with the budget 

and proposed appropriations information on personnel and other 

objects of expenditure in the way that information was included in 

the budget for fiscal year 1950. However, the requirement that information be included in the budget in that way may be waived or 

changed by joint action of the Committees on Appropriations of 

both Houses of Congress. This subsection does not limit the authority of a committee of Congress to request information in a form it 

prescribes. 

(c) When the President makes a basic change in the form of 

the budget, the President shall submit with the budget information 

showing where items in the budget for the prior fiscal year are contained in the present budget. However, the President may change 

the functional categories in the budget only in consultation with 

the Committees on Appropriations and on the Budget of both 

Houses of Congress. Committees of the House of Representatives 

and Senate shall receive prompt notification of all such changes. 

(d) The President shall develop programs and prescribe regulations to improve the compilation, analysis, publication, and dissemination of statistical information by executive agencies. The 

President shall carry out this subsection through the Administrator 

for the Office of Information and Regulatory Affairs in the Office 

of Management and Budget. 

(e) Under regulations prescribed by the President, each agency 

shall provide information required by the President in carrying out 
207 Sec. 1105 TITLE 31 OF THE UNITED STATES CODE 

this chapter. The President has access to, and may inspect, records 

of an agency to obtain information. 

SEC. 1105. BUDGET CONTENTS AND SUBMISSION TO CONGRESS. 

(a) On or after the first Monday in January but not later than 

the first Monday in February of each year, the President shall submit a budget of the United States Government for the following fiscal year. Each budget shall include a budget message and summary and supporting information. The President shall include in 

each budget the following: 

(1) information on activities and functions of the Government. 

(2) when practicable, information on costs and achievements of Government programs. 

(3) other desirable classifications of information. 

(4) a reconciliation of the summary information on expenditures with proposed appropriations. 

(5) except as provided in subsection (b) of this section, estimated expenditures and proposed appropriations the President 

decides are necessary to support the Government in the fiscal 

year for which the budget is submitted and the 4 fiscal years 

after that year. 

(6) estimated receipts of the Government in the fiscal year 

for which the budget is submitted and the 4 fiscal years after 

that year under— 

(A) laws in effect when the budget is submitted; and 

(B) proposals in the budget to increase revenues. 

(7) appropriations, expenditures, and receipts of the Government in the prior fiscal year. 

(8) estimated expenditures and receipts, and appropriations and proposed appropriations, of the Government for the 

current fiscal year. 

(9) balanced statements of the— 

(A) condition of the Treasury at the end of the prior 

fiscal year; 

(B) estimated condition of the Treasury at the end of 

the current fiscal year; and 

(C) estimated condition of the Treasury at the end of 

the fiscal year for which the budget is submitted if financial proposals in the budget are adopted. 

(10) essential information about the debt of the Government. 

(11) other financial information the President decides is 

desirable to explain in practicable detail the financial condition 

of the Government. 

(12) for each proposal in the budget for legislation that 

would establish or expand a Government activity or function, 

a table showing— 

(A) the amount proposed in the budget for appropriation and for expenditure because of the proposal in the fiscal year for which the budget is submitted; and 

(B) the estimated appropriation required because of 

the proposal for each of the 4 fiscal years after that year 

that the proposal will be in effect. 
Sec. 1105 TITLE 31 OF THE UNITED STATES CODE 208 

(13) an allowance for additional estimated expenditures 

and proposed appropriations for the fiscal year for which the 

budget is submitted. 

(14) an allowance for unanticipated uncontrollable expenditures for that year. 

(15) a separate statement on each of the items referred to 

in section 301(a)(1)-(5) of the Congressional Budget Act of 1974 

(2 U.S.C. 632(a)(1)-(5)). 

(16) the level of tax expenditures under existing law in the 

tax expenditures budget (as defined in section 3(a)(3) of the 

Congressional Budget Act of 1974 (2 U.S.C. 622(a)(3)) for the 

fiscal year for which the budget is submitted, considering projected economic factors and changes in the existing levels 

based on proposals in the budget. 

(17) information on estimates of appropriations for the fiscal year following the fiscal year for which the budget is submitted for grants, contracts, and other payments under each 

program for which there is an authorization of appropriations 

for that following fiscal year when the appropriations are authorized to be included in an appropriation law for the fiscal 

year before the fiscal year in which the appropriation is to be 

available for obligation. 

(18) a comparison of the total amount of budget outlays for 

the prior fiscal year, estimated in the budget submitted for 

that year, for each major program having relatively uncontrollable outlays with the total amount of outlays for that program 

in that year. 

(19) a comparison of the total amount of receipts for the 

prior fiscal year, estimated in the budget submitted for that 

year, with receipts received in that year, and for each major 

source of receipts, a comparison of the amount of receipts estimated in that budget with the amount of receipts from that 

source in that year. 

(20) an analysis and explanation of the differences between 

each amount compared under clauses (18) and (19) of this subsection. 

(21) a horizontal budget showing— 

(A) the programs for meteorology and of the National 

Climate Program established under section 5 of the National Climate Program Act (15 U.S.C. 2904); 

(B) specific aspects of the program of, and appropriations for, each agency; and 

(C) estimated goals and financial requirements. 

(22) a statement of budget authority, proposed budget authority, budget outlays, and proposed budget outlays, and descriptive information in terms of— 

(A) a detailed structure of national needs that refers 

to the missions and programs of agencies(as defined in section 101 of this title); and 

(B) the missions and basic programs. 

(23) separate appropriation accounts for appropriations 

under the Occupational Safety and Health Act of 1970(29 

U.S.C. 651 et seq.) and the Federal Mine Safety and Health 

Act of 1977 (30 U.S.C. 801 et seq.). 
209 Sec. 1105 TITLE 31 OF THE UNITED STATES CODE 

(24) recommendations on the return of Government capital 

to the Treasury by a mixed ownership corporation (as defined 

in section 9101(2) of this title) that the President decides are 

desirable. 

(25) a separate appropriation account for appropriations 

for each Office of Inspector General of an establishment defined under section 11(2) of the Inspector General Act of 1978. 

(26) a separate statement of the amount of appropriations 

requested for the Office of National Drug Control Policy and 

each program of the National Drug Control Program. 

(27) a separate statement of the amount of appropriations 

requested for the Office of Federal Financial Management. 

(28) beginning with fiscal year 1999, a Federal Government performance plan for the overall budget as provided for 

under section 1115. 

(29) information about the Violent Crime Reduction Trust 

Fund, including a separate statement of amounts in that Trust 

Fund. 

(30) an analysis displaying, by agency, proposed reductions 

in full—time equivalent positions compared to the current 

year’s level in order to comply with section 5 of the Federal 

Workforce Restructuring Act of 1994. 

(31) a separate statement of the amount of appropriations 

requested for the Chief Financial Officer in the Executive Office of the President. 

(32) a statement of the levels of budget authority and outlays for each program assumed to be extended in the baseline 

as provided in section 257(b)(2)(A) and for excise taxes assumed to be extended under section 257(b)(2)(C) of the Balanced Budget and Emergency Deficit Control Act of 1985. 

(33) a separate appropriation account for appropriations 

for the Council of the Inspectors General on Integrity and Efficiency, and, included in that account, a separate statement of 

the aggregate amount of appropriations requested for each 

academy maintained by the Council of the Inspectors General 

on Integrity and Efficiency. 

(34) with respect to the amount of appropriations requested for use by the Export Import Bank of the United 

States, a separate statement of the amount requested for its 

program budget, the amount requested for its administrative 

expenses, and of the amount requested for its administrative 

expenses, the amount requested for technology expenses. 

(35)(A)(i) a detailed, separate analysis, by budget function, 

by agency, and by initiative area (as determined by the administration) for the prior fiscal year, the current fiscal year, the 

fiscal years for which the budget is submitted, and the ensuing 

fiscal year identifying the amounts of gross and net appropriations or obligational authority and outlays that contribute to 

homeland security, with separate displays for mandatory and 

discretionary amounts, including— 

(I) summaries of the total amount of such appropriations or new obligational authority and 

outlays requested for homeland security; 
Sec. 1105 TITLE 31 OF THE UNITED STATES CODE 210 

(II) an estimate of the current service levels of 

homeland security spending; 

(III) the most recent risk assessment and 

summary of homeland security needs in each initiative area(as determined by the administration); 

and 

(IV) an estimate of user fees collected by the 

Federal Government on behalf of homeland security activities; 

(ii) with respect to subclauses (I) through (IV) of 

clause (i), amounts shall be provided by account for 

each program, project and activity; and 

(iii) an estimate of expenditures for homeland security activities by State and local governments and 

the private sector for the prior fiscal year and the current fiscal year. 

(B) In this paragraph, consistent with the Office of 

Management and Budget’s June 2002 ‘‘Annual Report to 

Congress on Combatting Terrorism’’, the term ‘‘homeland 

security’’ refers to those activities that detect, deter, protect against, and respond to terrorist attacks occurring 

within the United States and its territories. 

(C) In implementing this paragraph, including determining what Federal activities or accounts constitute 

homeland security for purposes of budgetary classification, 

the Office of Management and Budget is directed to consult periodically, but at least annually, with the House and 

Senate Budget Committees, the House and Senate Appropriations Committees, and the Congressional Budget Office. 

(36) as supplementary materials, a separate analysis of the 

budgetary effects for all prior fiscal years, the current fiscal 

year, the fiscal year for which the budget is submitted, and ensuing fiscal years of the actions the Secretary of the Treasury 

has taken or plans to take using any authority provided in the 

Emergency Economic Stabilization Act of 2008, including— 

(A) an estimate of the current value of all assets purchased, sold, and guaranteed under the authority provided 

in the Emergency Economic Stabilization Act of 2008 using 

methodology required by the Federal Credit Reform Act of 

1990(2 U.S.C. 661 et seq.) and section 123 of the Emergency Economic Stabilization Act of 2008; 

(B) an estimate of the deficit, the debt held by the 

public, and the gross Federal debt using methodology required by the Federal Credit Reform Act of 1990 and section 123 of the Emergency Economic Stabilization Act of 

2008; 

(C) an estimate of the current value of all assets purchased, sold, and guaranteed under the authority provided 

in the Emergency Economic Stabilization Act of 2008 calculated on a cash basis; 

(D) a revised estimate of the deficit, the debt held by 

the public, and the gross Federal debt, substituting the 

cash—based estimates in subparagraph (C) for the esti-
211 Sec. 1105 TITLE 31 OF THE UNITED STATES CODE 

83So in original. Another paragraph (37) is set out after paragraph (38). 84So in original. Another paragraph (37) is set out before the preceding paragraph (38). 

mates calculated under subparagraph(A) pursuant to the 

Federal Credit Reform Act of 1990 and section 123 of the 

Emergency Economic Stabilization Act of 2008; and 

(E) the portion of the deficit which can be attributed 

to any action taken by the Secretary using authority provided by the Emergency Economic Stabilization Act of 

2008 and the extent to which the change in the deficit 

since the most recent estimate is due to a reestimate using 

the methodology required by the Federal Credit Reform 

Act of 1990 and section 123 of the Emergency Economic 

Stabilization Act of 2008. 

(37) 83 information on estimates of appropriations for the 

fiscal year following the fiscal year for which the budget is submitted for the following medical care accounts of the Veterans 

Health Administration, Department of Veterans Affairs account: 

(A) Medical Services. 

(B) Medical Support and Compliance. 

(C) Medical Facilities. 

(38) a separate statement for the Crow Settlement Fund 

established under section 411 of the Crow Tribe Water Rights 

Settlement Act of 2010, which shall include the estimated 

amount of deposits into the Fund, obligations, and outlays from 

the Fund. 

(37) 84 the list of plans and reports, as provided for under 

section 1125, that agencies identified for elimination or consolidation because the plans and reports are determined outdated 

or duplicative of other required plans and reports. 

(b) Estimated expenditures and proposed appropriations for 

the legislative branch and the judicial branch to be included in 

each budget under subsection (a)(5) of this section shall be submitted to the President before October 16 of each year and included 

in the budget by the President without change. 

(c) The President shall recommend in the budget appropriate 

action to meet an estimated deficiency when the estimated receipts 

for the fiscal year for which the budget is submitted (under laws 

in effect when the budget is submitted) and the estimated amounts 

in the Treasury at the end of the current fiscal year available for 

expenditure in the fiscal year for which the budget is submitted, 

are less than the estimated expenditures for that year. The President shall make recommendations required by the public interest 

when the estimated receipts and estimated amounts in the Treasury are more than the estimated expenditures. 

(d) When the President submits a budget or supporting information about a budget, the President shall include a statement on 

all changes about the current fiscal year that were made before the 

budget or information was submitted. 

(e)(1) The President shall submit with materials related to 

each budget transmitted under subsection (a) on or after January 

1, 1985, an analysis for the ensuing fiscal year that shall identify 

requested appropriations or new obligational authority and outlays 
Sec. 1105 TITLE 31 OF THE UNITED STATES CODE 212 

for each major program that may be classified as a public civilian 

capital investment program and for each major program that may 

be classified as a military capital investment program, and shall 

contain summaries of the total amount of such appropriations or 

new obligational authority and outlays for public civilian capital investment programs and summaries of the total amount of such appropriations or new obligational authority and outlays for military 

capital investment programs. In addition, the analysis under this 

paragraph shall contain— 

(A) an estimate of the current service levels of public 

civilian capital investment and of military capital investment and alternative high and low levels of such investments over a period of ten years in current dollars and 

over a period of five years in constant dollars; 

(B) the most recent assessment analysis and summary, in a standard format, of public civilian capital investment needs in each major program area over a period 

of ten years; 

(C) an identification and analysis of the principal policy issues that affect estimated public civilian capital investment needs for each major program; and 

(D) an identification and analysis of factors that affect 

estimated public civilian capital investment needs for each 

major program, including but not limited to the following 

factors: 

(i) economic assumptions; 

(ii) engineering standards; 

(iii) estimates of spending for operation and maintenance; 

(iv) estimates of expenditures for similar investments by State and local governments; and 

(v) estimates of demand for public services derived 

from such capital investments and estimates of the 

service capacity of such investments. 

To the extent that any analysis required by this paragraph relates to any program for which Federal financial assistance is distributed under a formula prescribed by law, such analysis shall be 

organized by State and within each State by major metropolitan 

area if data are available. 

(2) For purposes of this subsection, any appropriation, new 

obligational authority, or outlay shall be classified as a public 

civilian capital investment to the extent that such appropriation, authority, or outlay will be used for the construction, acquisition, or rehabilitation of any physical asset that is capable 

of being used to produce services or other benefits for a number of years and is not classified as a military capital investment under paragraph (3). Such assets shall include (but not 

be limited to)— 

(A) roadways or bridges, 

(B) airports or airway facilities, 

(C) mass transportation systems, 

(D) wastewater treatment or related facilities, 

(E) water resources projects, 

(F) hospitals, 
213 Sec. 1105 TITLE 31 OF THE UNITED STATES CODE 

(G) resource recovery facilities, 

(H) public buildings, 

(I) space or communications facilities, 

(J) railroads, and 

(K) federally assisted housing. 

(3) For purposes of this subsection, any appropriation, new 

obligational authority, or outlay shall be classified as a military capital investment to the extent that such appropriation, 

authority, or outlay will be used for the construction, acquisition, or rehabilitation of any physical asset that is capable of 

being used to produce services or other benefits for purposes of 

national defense and security for a number of years. Such assets shall include military bases, posts, installations, and facilities. 

(4) Criteria and guidelines for use in the identification of 

public civilian and military capital investments, for distinguishing between public civilian and military capital investments, and for distinguishing between major and nonmajor 

capital investment programs shall be issued by the Director of 

the Office of Management and Budget after consultation with 

the Comptroller General and the Congressional Budget Office. 

The analysis submitted under this subsection shall be accompanied by an explanation of such criteria and guidelines. 

(5) For purposes of this subsection— 

(A) the term ‘‘construction’’ includes the design, planning, and erection of new structures and facilities, the expansion of existing structures and facilities, the reconstruction of a project at an existing site or adjacent to an 

existing site, and the installation of initial and replacement equipment for such structures and facilities; 

(B) the term ‘‘acquisition’’ includes the addition of 

land, sites, equipment, structures, facilities, or rolling 

stock by purchase, lease—purchase, trade, or donation; 

and 

(C) the term ‘‘rehabilitation’’ includes the alteration of 

or correction of deficiencies in an existing structure or facility so as to extend the useful life or improve the effectiveness of the structure or facility, the modernization or 

replacement of equipment at an existing structure or facility, and the modernization of, or replacement of parts for, 

rolling stock. 

(f) The budget transmitted pursuant to subsection (a) for a fiscal year shall be prepared in a manner consistent with the requirements of the Balanced Budget and Emergency Deficit Control Act 

of 1985 that apply to that and subsequent fiscal years. 

(g)(1) The Director of the Office of Management and Budget 

shall establish the funding for advisory and assistance services for 

each department and agency as a separate object class in each 

budget annually submitted to the Congress under this section. 

(2)(A) In paragraph (1), except as provided in subparagraph(B), the term ‘‘advisory and assistance services’’ means 

the following services when provided by nongovernmental 

sources: 

(i) Management and professional support services. 
Sec. 1106 TITLE 31 OF THE UNITED STATES CODE 214 

(ii) Studies, analyses, and evaluations. 

(iii) Engineering and technical services. 

(B) In paragraph (1), the term ‘‘advisory and assistance services’’ does not include the following services: 

(i) Routine automated data processing and telecommunications services unless such services are an 

integral part of a contract for the procurement of advisory and assistance services. 

(ii) Architectural and engineering services, as defined in section 1102 of title 40. 

(iii) Research on basic mathematics or medical, biological, physical, social, psychological, or other phenomena. 

(h)(1) If there is a Medicare funding warning under section 

801(a)(2) of the Medicare Prescription Drug, Improvement, and 

Modernization Act of 2003 made in a year, the President shall submit to Congress, within the 15-day period beginning on the date of 

the budget submission to Congress under subsection (a) for the succeeding year, proposed legislation to respond to such warning. 

(2) Paragraph (1) does not apply if, during the year in 

which the warning is made, legislation is enacted which eliminates excess general revenue Medicare funding (as defined in 

section 801(c) of the Medicare Prescription Drug, Improvement, 

and Modernization Act of 2003) for the 7-fiscal year reporting 

period, as certified by the Board of Trustees of each Medicare 

trust fund (as defined in section 801(c)(5) of such Act) not later 

than 30 days after the date of the enactment of such legislation. 

SEC. 1106. SUPPLEMENTAL BUDGET ESTIMATES AND CHANGES. 

(a) Before July 16 of each year, the President shall submit to 

Congress a supplemental summary of the budget for the fiscal year 

for which the budget is submitted under section 1105(a) of this 

title. The summary shall include— 

(1) for that fiscal year— 

(A) substantial changes in or reappraisals of estimates 

of expenditures and receipts; 

(B) substantial obligations imposed on the budget after 

its submission; 

(C) current information on matters referred to in section 1105(a)(8) and (9)(B) and (C) of this title; and 

(D) additional information the President decides is advisable to provide Congress with complete and current information about the budget and current estimates of the 

functions, obligations, requirements, and financial condition of the United States Government; 

(2) for the 4 fiscal years following the fiscal year for which 

the budget is submitted, information on estimated expenditures for programs authorized to continue in future years, or 

that are considered mandatory, under law; and 

(3) for future fiscal years, information on estimated expenditures of balances carried over from the fiscal year for 

which the budget is submitted. 
215 Sec. 1108 TITLE 31 OF THE UNITED STATES CODE 

(b) Before July 16 of each year, the President shall submit to 

Congress a statement of changes in budget authority requested, estimated budget outlays, and estimated receipts for the fiscal year 

for which the budget is submitted (including prior changes proposed for the executive branch of the Government) that the President decides are necessary and appropriate based on current information. The statement shall include the effect of those changes on 

the information submitted under section 1105(a)(1)-(14) and (b) of 

this title and shall include supporting information as practicable. 

The statement submitted before July 16 may be included in the information submitted under subsection (a)(1) of this section. 

(c) Subsection (f) of section 1105 shall apply to revisions and 

supplemental summaries submitted under this section to the same 

extent that such subsection applies to the budget submitted under 

section 1105(a) to which such revisions and summaries relate. 

SEC. 1107. DEFICIENCY AND SUPPLEMENTAL APPROPRIATIONS. 

The President may submit to Congress proposed deficiency and 

supplemental appropriations the President decides are necessary 

because of laws enacted after the submission of the budget or that 

are in the public interest. The President shall include the reasons 

for the submission of the proposed appropriations and the reasons 

the proposed appropriations were not included in the budget. When 

the total proposed appropriations would have required the President to make a recommendation under section 1105(c) of this title 

if they had been included in the budget, the President shall make 

a recommendation under that section. 

SEC. 1108. PREPARATION AND SUBMISSION OF APPROPRIATIONS REQUESTS TO THE PRESIDENT. 

(a) In this section (except subsections (b)(1) and (e)), ‘‘agency’’ 

means a department, agency, or instrumentality of the United 

States Government. 

(b)(1) The head of each agency shall prepare and submit to the 

President each appropriation request for the agency. The request 

shall be prepared and submitted in the form prescribed by the 

President under this chapter and by the date established by the 

President. When the head of an agency does not submit a request 

by that date, the President shall prepare the request for the agency 

to be included in the budget or changes in the budget or as deficiency and supplemental appropriations. The President may change 

agency appropriation requests. Agency appropriation requests shall 

be developed from cost—based budgets in the way and at times 

prescribed by the President. The head of the agency shall use the 

cost—based budget to administer the agency and to divide appropriations or amounts. 

(2) An officer or employee of an agency in the executive 

branch may submit to the President or Congress a request for 

legislation authorizing deficiency or supplemental appropriations for the agency only with the approval of the head of the 

agency. 

(c) The head of an agency shall include with an appropriation 

request submitted to the President a report that the statement of 

obligations submitted with the request contains obligations consistent with section 1501 of this title. The head of the agency shall 
Sec. 1109 TITLE 31 OF THE UNITED STATES CODE 216 

support the report with a certification of the consistency and shall 

support the certification with records showing that the amounts 

have been obligated. The head of the agency shall designate officials to make the certifications, and those officials may not delegate 

the duty to make the certifications. The certifications and records 

shall be kept in the agency— 

(1) in a form that makes audits and reconciliations easy; 

and 

(2) for a period necessary to carry out audits and reconciliations. 

(d) To the extent practicable, the head of an agency shall— 

(1) provide information supporting the agency’s budget request for its missions by function and subfunction (including 

the mission of each organizational unit of the agency); and 

(2) relate the agency’s programs to its missions. 

(e) Except as provided in subsection (subsection (f) of this section, an officer or employee of an agency(as defined in section 1101 

of this title) may submit to Congress or a committee of Congress 

an appropriations estimate or request, a request for an increase in 

that estimate or request, or a recommendation on meeting the financial needs of the Government only when requested by either 

House of Congress. 

(f) The Interstate Commerce Commission shall submit to Congress copies of budget estimates, requests, and information (including personnel needs), legislative recommendations, prepared testimony for congressional hearings, and comments on legislation at 

the same time they are sent to the President or the Office of Management and Budget. An officer of an agency may not impose conditions on or impair communication by the Commission with Congress, or a committee or member of Congress, about the information. 

(g) Amounts available under law are available for field examinations of appropriation estimates. The use of the amounts is subject only to regulations prescribed by the appropriate standing committees of Congress. 

SEC. 1109. CURRENT PROGRAMS AND ACTIVITIES ESTIMATES. 

(a) On or before the first Monday after January 3 of each year 

(on or before February 5 in 1986), the President shall submit to 

both Houses of Congress the estimated budget outlays and proposed budget authority that would be included in the budget for 

the following fiscal year if programs and activities of the United 

States Government were carried on during that year at the same 

level as the current fiscal year without a change in policy. The 

President shall state the estimated budget outlays and proposed 

budget authority by function and subfunction under the classifications in the budget summary table under the heading ‘‘Budget Authority and Outlays by Function and Agency’’, by major programs 

in each function, and by agency. The President also shall include 

a statement of the economic and program assumptions on which 

those budget outlays and budget authority are based, including inflation, real economic growth, and unemployment rates, program 

caseloads, and pay increases. 
217 Sec. 1112 TITLE 31 OF THE UNITED STATES CODE 

(b) The Joint Economic Committee shall review the estimated 

budget outlays and proposed budget authority and submit an economic evaluation of the budget outlays and budget authority to the 

Committees on the Budget of both Houses before March 1 of each 

year. 

SEC. 1110. YEAR-AHEAD REQUESTS FOR AUTHORIZING LEGISLATION. 

A request to enact legislation authorizing new budget authority to continue a program or activity for a fiscal year shall be submitted to Congress before May 16 of the year before the year in 

which the fiscal year begins. If a new program or activity will continue for more than one year, the request must be submitted for 

at least the first and 2d fiscal years. 

SEC. 1111. IMPROVING ECONOMY AND EFFICIENCY. 

To improve economy and efficiency in the United States Government, the President shall— 

(1) make a study of each agency to decide, and may send 

Congress recommendations, on changes that should be made 

in— 

(A) the organization, activities, and business methods 

of agencies; 

(B) agency appropriations; 

(C) the assignment of particular activities to particular 

services; and 

(D) regrouping of services; and 

(2) evaluate and develop improved plans for the organization, coordination, and management of the executive branch of 

the Government. 

SEC. 1112. FISCAL, BUDGET, AND PROGRAM INFORMATION. 

(a) In this section, ‘‘agency’’ means a department, agency, or instrumentality of the United States Government except a mixed— 

ownership Government corporation. 

(b) In cooperation with the Comptroller General, the Secretary 

of the Treasury and the Director of the Office of Management and 

Budget shall establish and maintain standard data processing and 

information systems for fiscal, budget, and program information for 

use by agencies to meet the needs of the Government, and to the 

extent practicable, of State and local governments. 

(c) The Comptroller General— 

(1) in cooperation with the Secretary, the Director of the 

Office of Management and Budget, and the Director of the 

Congressional Budget Office, shall establish, maintain, and 

publish standard terms and classifications for fiscal, budget, 

and program information of the Government, including information on fiscal policy, receipts, expenditures, programs, 

projects, activities, and functions; 

(2) when advisable, shall report to Congress on those 

terms and classifications, and recommend legislation necessary 

to promote the establishment, maintenance, and use of standard terms and classifications by the executive branch of the 

Government; and 

(3) in carrying out this subsection, shall give particular 

consideration to the needs of the Committees on Appropriations and on the Budget of both Houses of Congress, the Com-
Sec. 1113 TITLE 31 OF THE UNITED STATES CODE 218 

mittee on Ways and Means of the House, the Committee on Finance of the Senate, and the Congressional Budget Office. 

(d) Agencies shall use the standard terms and classifications 

published under subsection (c)(1) of this section in providing fiscal, 

budget, and program information to Congress. 

(e) In consultation with the President, the head of each executive agency shall take actions necessary to achieve to the extent 

possible— 

(1) consistency in budget and accounting classifications; 

(2) synchronization between those classifications and organizational structure; and 

(3) information by organizational unit on performance and 

program costs to support budget justifications. 

(f) In cooperation with the Director of the Congressional Budget Office, the Comptroller General, and appropriate representatives 

of State and local governments, the Director of the Office of Management and Budget (to the extent practicable) shall provide State 

and local governments with fiscal, budget, and program information necessary for accurate and timely determination by those governments of the impact on their budgets of assistance of the United 

States Government. 

SEC. 1113. CONGRESSIONAL INFORMATION. 

(a)(1) When requested by a committee of Congress having jurisdiction over receipts or appropriations, the President shall provide the committee with assistance and information. 

(2) When requested by a committee of Congress, additional 

information related to the amount of an appropriation originally requested by an Office of Inspector General shall be submitted to the committee. 

(b) When requested by a committee of Congress, by the Comptroller General, or by the Director of the Congressional Budget Office, the Secretary of the Treasury, the Director of the Office of 

Management and Budget, and the head of each executive agency 

shall— 

(1) provide information on the location and kind of available fiscal, budget, and program information; 

(2) to the extent practicable, prepare summary tables of 

that fiscal, budget, and program information and related information the committee, the Comptroller General, or the Director of the Congressional Budget Office considers necessary; and 

(3) provide a program evaluation carried out or commissioned by an executive agency. 

(c) In cooperation with the Director of the Congressional Budget Office, the Secretary, and the Director of the Office of Management and Budget, the Comptroller General shall— 

(1) establish and maintain a current directory of sources 

of, and information systems for, fiscal, budget, and program information and a brief description of the contents of each source 

and system; 

(2) when requested, provide assistance to committees of 

Congress and members of Congress in obtaining information 

from the sources in the directory; and 
219 Sec. 1113 TITLE 31 OF THE UNITED STATES CODE 

(3) when requested, provide assistance to committees and, 

to the extent practicable, to members of Congress in evaluating 

the information obtained from the sources in the directory. 

(d) To the extent they consider necessary, the Comptroller General and the Director of the Congressional Budget Office individually or jointly shall establish and maintain a file of information 

to meet recurring needs of Congress for fiscal, budget, and program 

information to carry out this section and sections 717 and 1112 of 

this title. The file shall include information on budget requests, 

congressional authorizations to obligate and expend, apportionment 

and reserve actions, and obligations and expenditures. The Comptroller General and the Director shall maintain the file and an 

index to the file so that it is easier for the committees and agencies 

of Congress to use the file and index through data processing and 

communications techniques. 

(e)(1) The Comptroller General shall— 

(A) carry out a continuing program to identify the 

needs of committees and members of Congress for fiscal, 

budget, and program information to carry out this section 

and section 1112 of this title; 

(B) assist committees of Congress in developing their 

information needs; 

(C) monitor recurring reporting requirements of Congress and committees; and 

(D) make recommendations to Congress and committees for changes and improvements in those reporting requirements to meet information needs identified by the 

Comptroller General, to improve their usefulness to congressional users, and to eliminate unnecessary reporting. 

(2) Before September 2 of each year, the Comptroller General shall report to Congress on— 

(A) the needs identified under paragraph(1)(A) of this 

subsection; 

(B) the relationship of those needs to existing reporting requirements; 

(C) the extent to which reporting by the executive 

branch of the United States Government currently meets 

the identified needs; 

(D) the changes to standard classifications necessary 

to meet congressional needs; 

(E) activities, progress, and results of the program of 

the Comptroller General under paragraph(1)(B)-(D) of this 

subsection; and 

(F) progress of the executive branch in the prior year. 

(3) Before March 2 of each year, the Director of the Office 

of Management and Budget and the Secretary shall report to 

Congress on plans for meeting the needs identified under paragraph(1)(A) of this subsection, including— 

(A) plans for carrying out changes to classifications to 

meet information needs of Congress; 

(B) the status of information systems in the prior year; 

and 

(C) the use of standard classifications. 
Sec. 1114 TITLE 31 OF THE UNITED STATES CODE 220 

85Section 1114 repealed Public Law 103-355, title II, Sec. 2454(c)(2), Oct. 13, 1994, 108 Stat. 

3326. The repealed Public Law 97-258, Sept. 13, 1982, 96 Stat. 916, related to budget information on consulting services. 

SEC. 1114. REPEALED.85

SEC. 1115. FEDERAL GOVERNMENT AND AGENCY PERFORMANCE 

PLANS. 

(a) FEDERAL GOVERNMENT PERFORMANCE PLANS.—In carrying 

out the provisions of section 1105(a)(28), the Director of the Office 

of Management and Budget shall coordinate with agencies to develop the Federal Government performance plan. In addition to the 

submission of such plan with each budget of the United States 

Government, the Director of the Office of Management and Budget 

shall ensure that all information required by this subsection is concurrently made available on the website provided under section 

1122 and updated periodically, but no less than annually. The Federal Government performance plan shall— 

(1) establish Federal Government performance goals to define the level of performance to be achieved during the year in 

which the plan is submitted and the next fiscal year for each 

of the Federal Government priority goals required under section 1120(a) of this title; 

(2) identify the agencies, organizations, program activities, 

regulations, tax expenditures, policies, and other activities contributing to each Federal Government performance goal during 

the current fiscal year; 

(3) for each Federal Government performance goal, identify 

a lead Government official who shall be responsible for coordinating the efforts to achieve the goal; 

(4) establish common Federal Government performance indicators with quarterly targets to be used in measuring or assessing— 

(A) overall progress toward each Federal Government 

performance goal; and 

(B) the individual contribution of each agency, organization, program activity, regulation, tax expenditure, policy, and other activity identified under paragraph(2); 

(5) establish clearly defined quarterly milestones; and 

(6) identify major management challenges that are Governmentwide or crosscutting in nature and describe plans to 

address such challenges, including relevant performance goals, 

performance indicators, and milestones. 

(b) Agency Performance Plans.—Not later than the first Monday in February of each year, the head of each agency shall make 

available on a public website of the agency, and notify the President and the Congress of its availability, a performance plan covering each program activity set forth in the budget of such agency. 

Such plan shall— 

(1) establish performance goals to define the level of performance to be achieved during the year in which the plan is 

submitted and the next fiscal year; 

(2) express such goals in an objective, quantifiable, and 

measurable form unless authorized to be in an alternative form 

under subsection (c); 

(3) describe how the performance goals contribute to— 
221 Sec. 1115 TITLE 31 OF THE UNITED STATES CODE 

(A) the general goals and objectives established in the 

agency’s strategic plan required by section 306(a)(2) of title 

5; and 

(B) any of the Federal Government performance goals 

established in the Federal Government performance plan 

required by subsection (a)(1); 

(4) identify among the performance goals those which are 

designated as agency priority goals as required by section 

1120(b) of this title, if applicable; 

(5) provide a description of how the performance goals are 

to be achieved, including— 

(A) the operation processes, training, skills and technology, and the human, capital, information, and other resources and strategies required to meet those performance 

goals; 

(B) clearly defined milestones; 

(C) an identification of the organizations, program activities, regulations, policies, and other activities that contribute to each performance goal, both within and external 

to the agency; 

(D) a description of how the agency is working with 

other agencies to achieve its performance goals as well as 

relevant Federal Government performance goals; and 

(E) an identification of the agency officials responsible 

for the achievement of each performance goal, who shall be 

known as goal leaders; 

(6) establish a balanced set of performance indicators to be 

used in measuring or assessing progress toward each performance goal, including, as appropriate, customer service, efficiency, output, and outcome indicators; 

(7) provide a basis for comparing actual program results 

with the established performance goals; 

(8) a description of how the agency will ensure the accuracy and reliability of the data used to measure progress towards its performance goals, including an identification of— 

(A) the means to be used to verify and validate measured values; 

(B) the sources for the data; 

(C) the level of accuracy required for the intended use 

of the data; 

(D) any limitations to the data at the required level of 

accuracy; and 

(E) how the agency will compensate for such limitations if needed to reach the required level of accuracy; 

(9) describe major management challenges the agency 

faces and identify— 

(A) planned actions to address such challenges; 

(B) performance goals, performance indicators, and 

milestones to measure progress toward resolving such 

challenges; and 

(C) the agency official responsible for resolving such 

challenges; and 

(10) identify low—priority program activities based on an 

analysis of their contribution to the mission and goals of the 
Sec. 1115 TITLE 31 OF THE UNITED STATES CODE 222 

agency and include an evidence—based justification for designating a program activity as low priority. 

(c) ALTERNATIVE FORM.—If an agency, in consultation with the 

Director of the Office of Management and Budget, determines that 

it is not feasible to express the performance goals for a particular 

program activity in an objective, quantifiable, and measurable 

form, the Director of the Office of Management and Budget may 

authorize an alternative form. Such alternative form shall— 

(1) include separate descriptive statements of— 

(A)(i) a minimally effective program; and 

(ii) a successful program; or 

(B) such alternative as authorized by the Director of 

the Office of Management and Budget, with sufficient precision and in such terms that would allow for an accurate, 

independent determination of whether the program activity’s performance meets the criteria of the description; or 

(2) state why it is infeasible or impractical to express a 

performance goal in any form for the program activity. 

(d) Treatment of Program Activities.—For the purpose of complying with this section, an agency may aggregate, disaggregate, or 

consolidate program activities, except that any aggregation or consolidation may not omit or minimize the significance of any program activity constituting a major function or operation for the 

agency. 

(e) Appendix.—An agency may submit with an annual performance plan an appendix covering any portion of the plan that— 

(1) is specifically authorized under criteria established by 

an Executive order to be kept secret in the interest of national 

defense or foreign policy; and 

(2) is properly classified pursuant to such Executive order. 

(f) Inherently Governmental Functions.—The functions and activities of this section shall be considered to be inherently governmental functions. The drafting of performance plans under this section shall be performed only by Federal employees. 

(g) Chief Human Capital Officers.—With respect to each agency with a Chief Human Capital Officer, the Chief Human Capital 

Officer shall prepare that portion of the annual performance plan 

described under subsection (b)(5)(A). 

(h) DEFINITIONS.—For purposes of this section and sections 

1116 through 1125, and sections 9703(1) and 9704, the term— 

(1) ‘‘agency’’ has the same meaning as such term is defined 

under section 306(f) of title 5; 

(2) ‘‘crosscutting’’ means across organizational (such as 

agency) boundaries; 

(3) ‘‘customer service measure’’ means an assessment of 

service delivery to a customer, client, citizen, or other recipient, 

which can include an assessment of quality, timeliness, and 

satisfaction among other factors; 

(4) ‘‘efficiency measure’’ means a ratio of a program activity’s inputs(such as costs or hours worked by employees) to its 

outputs (amount of products or services delivered) or outcomes 

(the desired results of a program); 

(5) ‘‘major management challenge’’ means programs or 

management functions, within or across agencies, that have 
223 Sec. 1116 TITLE 31 OF THE UNITED STATES CODE 

greater vulnerability to waste, fraud, abuse, and mismanagement (such as issues identified by the Government Accountability Office as high risk or issues identified by an Inspector 

General) where a failure to perform well could seriously affect 

the ability of an agency or the Government to achieve its mission or goals; 

(6) ‘‘milestone’’ means a scheduled event signifying the 

completion of a major deliverable or a set of related deliverables or a phase of work; 

(7) ‘‘outcome measure’’ means an assessment of the results 

of a program activity compared to its intended purpose; 

(8) ‘‘output measure’’ means the tabulation, calculation, or 

recording of activity or effort that can be expressed in a quantitative or qualitative manner; 

(9) ‘‘performance goal’’ means a target level of performance 

expressed as a tangible, measurable objective, against which 

actual achievement can be compared, including a goal expressed as a quantitative standard, value, or rate; 

(10) ‘‘performance indicator’’ means a particular value or 

characteristic used to measure output or outcome; 

(11) ‘‘program activity’’ means a specific activity or project 

as listed in the program and financing schedules of the annual 

budget of the United States Government; and 

(12) ‘‘program evaluation’’ means an assessment, through 

objective measurement and systematic analysis, of the manner 

and extent to which Federal programs achieve intended objectives. 

SEC. 1116. AGENCY PERFORMANCE REPORTING. 

(a) The head of each agency shall make available on a public 

website of the agency and to the Office of Management and Budget 

an update on agency performance. 

(b)(1) Each update shall compare actual performance achieved 

with the performance goals established in the agency performance 

plan under section 1115(b) and shall occur no less than 150 days 

after the end of each fiscal year, with more frequent updates of actual performance on indicators that provide data of significant 

value to the Government, Congress, or program partners at a reasonable level of administrative burden. 

(2) If performance goals are specified in an alternative 

form under section 1115(c), the results shall be described in relation to such specifications, including whether the performance failed to meet the criteria of a minimally effective or successful program. 

(c) Each update shall— 

(1) review the success of achieving the performance goals 

and include actual results for the 5 preceding fiscal years; 

(2) evaluate the performance plan for the current fiscal 

year relative to the performance achieved toward the performance goals during the period covered by the update; 

(3) explain and describe where a performance goal has not 

been met (including when a program activity’s performance is 

determined not to have met the criteria of a successful pro-
Sec. 1116 TITLE 31 OF THE UNITED STATES CODE 224 

gram activity under section 1115(c)(1)(A)(ii) or a corresponding 

level of achievement if another alternative form is used)— 

(A) why the goal was not met; 

(B) those plans and schedules for achieving the established performance goal; and 

(C) if the performance goal is impractical or infeasible, 

why that is the case and what action is recommended; 

(4) describe the use and assess the effectiveness in achieving performance goals of any waiver under section 9703 (!1) of 

this title; 

(5) include a review of the performance goals and evaluation of the performance plan relative to the agency’s strategic 

human capital management; 

(6) describe how the agency ensures the accuracy and reliability of the data used to measure progress towards its performance goals, including an identification of— 

(A) the means used to verify and validate measured 

values; 

(B) the sources for the data; 

(C) the level of accuracy required for the intended use 

of the data; 

(D) any limitations to the data at the required level of 

accuracy; and 

(E) how the agency has compensated for such limitations if needed to reach the required level of accuracy; and 

(7) include the summary findings of those program evaluations completed during the period covered by the update. 

(d) If an agency performance update includes any program activity or information that is specifically authorized under criteria 

established by an Executive Order to be kept secret in the interest 

of national defense or foreign policy and is properly classified pursuant to such Executive Order, the head of the agency shall make 

such information available in the classified appendix provided 

under section 1115(e). 

(e) The functions and activities of this section shall be considered to be inherently governmental functions. The drafting of agency performance updates under this section shall be performed only 

by Federal employees. 

(f) Each fiscal year, the Office of Management and Budget 

shall determine whether the agency programs or activities meet 

performance goals and objectives outlined in the agency performance plans and submit a report on unmet goals to— 

(1) the head of the agency; 

(2) the Committee on Homeland Security and Governmental Affairs of the Senate; 

(3) the Committee on Oversight and Governmental Reform 

of the House of Representatives; and 

(4) the Government Accountability Office. 

(g) If an agency’s programs or activities have not met performance goals as determined by the Office of Management and Budget 

for 1 fiscal year, the head of the agency shall submit a performance 

improvement plan to the Office of Management and Budget to increase program effectiveness for each unmet goal with measurable 

milestones. The agency shall designate a senior official who shall 
225 Sec. 1118 TITLE 31 OF THE UNITED STATES CODE 

oversee the performance improvement strategies for each unmet 

goal. 

(h)(1) If the Office of Management and Budget determines that 

agency programs or activities have unmet performance goals for 2 

consecutive fiscal years, the head of the agency shall— 

(A) submit to Congress a description of the actions the 

Administration will take to improve performance, including proposed statutory changes or planned executive actions; and 

(B) describe any additional funding the agency will obligate to achieve the goal, if such an action is determined 

appropriate in consultation with the Director of the Office 

of Management and Budget, for an amount determined appropriate by the Director. 

(2) In providing additional funding described under paragraph (1)(B), the head of the agency shall use any reprogramming or transfer authority available to the agency. If after exercising such authority additional funding is necessary to 

achieve the level determined appropriate by the Director of the 

Office of Management and Budget, the head of the agency shall 

submit a request to Congress for additional reprogramming or 

transfer authority. 

(i) If an agency’s programs or activities have not met performance goals as determined by the Office of Management and Budget 

for 3 consecutive fiscal years, the Director of the Office of Management and Budget shall submit recommendations to Congress on actions to improve performance not later than 60 days after that determination, including— 

(1) reauthorization proposals for each program or activity 

that has not met performance goals; 

(2) proposed statutory changes necessary for the program 

activities to achieve the proposed level of performance on each 

performance goal; and 

(3) planned executive actions or identification of the program for termination or reduction in the President’s budget. 

SEC. 1117. EXEMPTION. 

The Director of the Office of Management and Budget may exempt from the requirements of sections 1115 and 1116 of this title 

and section 306 of title 5, any agency with annual outlays of 

$20,000,000 or less. 

SEC. 1118. PILOT PROJECTS FOR PERFORMANCE GOALS. 

(a) The Director of the Office of Management and Budget, after 

consultation with the head of each agency, shall designate not less 

than ten agencies as pilot projects in performance measurement for 

fiscal years 1994, 1995, and 1996. The selected agencies shall reflect a representative range of Government functions and capabilities in measuring and reporting program performance. 

(b) Pilot projects in the designated agencies shall undertake 

the preparation of performance plans under section 1115, and program performance reports under section 1116, other than section 

1116(c), for one or more of the major functions and operations of 

the agency. A strategic plan shall be used when preparing agency 

performance plans during one or more years of the pilot period. 
Sec. 1119 TITLE 31 OF THE UNITED STATES CODE 226 

(c) No later than May 1, 1997, the Director of the Office of 

Management and Budget shall submit a report to the President 

and to the Congress which shall— 

(1) assess the benefits, costs, and usefulness of the plans 

and reports prepared by the pilot agencies in meeting the purposes of the Government Performance and Results Act of 1993; 

(2) identify any significant difficulties experienced by the 

pilot agencies in preparing plans and reports; and 

(3) set forth any recommended changes in the requirements of the provisions of Government Performance and Results Act of 1993, section 306 of title 5, sections 1105, 1115, 

1116, 1117, 1119 and 9703 of this title, and this section. 

SEC. 1119. PILOT PROJECTS FOR PERFORMANCE BUDGETING. 

(a) The Director of the Office of Management and Budget, after 

consultation with the head of each agency shall designate not less 

than five agencies as pilot projects in performance budgeting for 

fiscal years 1998 and 1999. At least three of the agencies shall be 

selected from those designated as pilot projects under section 1118, 

and shall also reflect a representative range of Government functions and capabilities in measuring and reporting program performance. 

(b) Pilot projects in the designated agencies shall cover the 

preparation of performance budgets. Such budgets shall present, 

for one or more of the major functions and operations of the agency, 

the varying levels of performance, including outcome related performance, that would result from different budgeted amounts. 

(c) The Director of the Office of Management and Budget shall 

include, as an alternative budget presentation in the budget submitted under section 1105 for fiscal year 1999, the performance 

budgets of the designated agencies for this fiscal year. 

(d) No later than March 31, 2001, the Director of the Office of 

Management and Budget shall transmit a report to the President 

and to the Congress on the performance budgeting pilot projects 

which shall— 

(1) assess the feasibility and advisability of including a 

performance budget as part of the annual budget submitted 

under section 1105; 

(2) describe any difficulties encountered by the pilot agencies in preparing a performance budget; 

(3) recommend whether legislation requiring performance 

budgets should be proposed and the general provisions of any 

legislation; and 

(4) set forth any recommended changes in the other requirements of the Government Performance and Results Act of 

1993, section 306 of title 5, sections 1105, 1115, 1116, 1117, 

and 9703 of this title, and this section. 

(e) After receipt of the report required under subsection (d), the 

Congress may specify that a performance budget be submitted as 

part of the annual budget submitted under section 1105. 

SEC. 1120. FEDERAL GOVERNMENT AND AGENCY PRIORITY GOALS. 

(a) FEDERAL GOVERNMENT PRIORITY GOALS.— 

(1) The Director of the Office of Management and Budget 

shall coordinate with agencies to develop priority goals to im-
227 Sec. 1120 TITLE 31 OF THE UNITED STATES CODE 

prove the performance and management of the Federal Government. Such Federal Government priority goals shall include— 

(A) outcome-oriented goals covering a limited number 

of crosscutting policy areas; and 

(B) goals for management improvements needed across 

the Federal Government, including— 

(i) financial management; 

(ii) human capital management; 

(iii) information technology management; 

(iv) procurement and acquisition management; 

and 

(v) real property management; 

(2) The Federal Government priority goals shall be longterm in nature. At a minimum, the Federal Government priority goals shall be updated or revised every 4 years and made 

publicly available concurrently with the submission of the 

budget of the United States Government made in the first full 

fiscal year following any year in which the term of the President commences under section 101 of title 3. As needed, the Director of the Office of Management and Budget may make adjustments to the Federal Government priority goals to reflect 

significant changes in the environment in which the Federal 

Government is operating, with appropriate notification of Congress. 

(3) When developing or making adjustments to Federal 

Government priority goals, the Director of the Office of Management and Budget shall consult periodically with the Congress, including obtaining majority and minority views from— 

(A) the Committees on Appropriations of the Senate 

and the House of Representatives; 

(B) the Committees on the Budget of the Senate and 

the House of Representatives; 

(C) the Committee on Homeland Security and Governmental Affairs of the Senate; 

(D) the Committee on Oversight and Government Reform of the House of Representatives; 

(E) the Committee on Finance of the Senate; 

(F) the Committee on Ways and Means of the House 

of Representatives; and 

(G) any other committees as determined appropriate; 

(4) The Director of the Office of Management and Budget 

shall consult with the appropriate committees of Congress at 

least once every 2 years. 

(5) The Director of the Office of Management and Budget 

shall make information about the Federal Government priority 

goals available on the website described under section 1122 of 

this title. 

(6) The Federal Government performance plan required 

under section 1115(a) of this title shall be consistent with the 

Federal Government priority goals. 

(b) AGENCY PRIORITY GOALS.— 

(1) Every 2 years, the head of each agency listed in section 

901(b) of this title, or as otherwise determined by the Director 
Sec. 1121 TITLE 31 OF THE UNITED STATES CODE 228 

of the Office of Management and Budget, shall identify agency 

priority goals from among the performance goals of the agency. 

The Director of the Office of Management and Budget shall determine the total number of agency priority goals across the 

Government, and the number to be developed by each agency. 

The agency priority goals shall— 

(A) reflect the highest priorities of the agency, as determined by the head of the agency and informed by the 

Federal Government priority goals provided under subsection (a) and the consultations with Congress and other 

interested parties required by section 306(d) of title 5; 

(B) have ambitious targets that can be achieved within 

a 2-year period; 

(C) have a clearly identified agency official, known as 

a goal leader, who is responsible for the achievement of 

each agency priority goal; 

(D) have interim quarterly targets for performance indicators if more frequent updates of actual performance 

provides data of significant value to the Government, Congress, or program partners at a reasonable level of administrative burden; and 

(E) have clearly defined quarterly milestones. 

(2) If an agency priority goal includes any program activity 

or information that is specifically authorized under criteria established by an Executive order to be kept secret in the interest of national defense or foreign policy and is properly classified pursuant to such Executive order, the head of the agency 

shall make such information available in the classified appendix provided under section 1115(e). 

(c) The functions and activities of this section shall be considered to be inherently governmental functions. The development of 

Federal Government and agency priority goals shall be performed 

only by Federal employees. 

SEC. 1121. QUARTERLY PRIORITY PROGRESS REVIEWS AND USE OF 

PERFORMANCE INFORMATION. 

(a) USE OF PERFORMANCE INFORMATION TO ACHIEVE FEDERAL

GOVERNMENT PRIORITY GOALS.—Not less than quarterly, the Director of the Office of Management and Budget, with the support of 

the Performance Improvement Council, shall— 

(1) for each Federal Government priority goal required by 

section 1120(a) of this title, review with the appropriate lead 

Government official the progress achieved during the most recent quarter, overall trend data, and the likelihood of meeting 

the planned level of performance; 

(2) include in such reviews officials from the agencies, organizations, and program activities that contribute to the accomplishment of each Federal Government priority goal; 

(3) assess whether agencies, organizations, program activities, regulations, tax expenditures, policies, and other activities 

are contributing as planned to each Federal Government priority goal; 

(4) categorize the Federal Government priority goals by 

risk of not achieving the planned level of performance; and 
229 Sec. 1122 TITLE 31 OF THE UNITED STATES CODE 

(5) for the Federal Government priority goals at greatest 

risk of not meeting the planned level of performance, identify 

prospects and strategies for performance improvement, including any needed changes to agencies, organizations, program activities, regulations, tax expenditures, policies or other activities. 

(b) AGENCY USE OF PERFORMANCE INFORMATION TO ACHIEVE

AGENCY PRIORITY GOALS.—Not less than quarterly, at each agency 

required to develop agency priority goals required by section 

1120(b) of this title, the head of the agency and Chief Operating 

Officer, with the support of the agency Performance Improvement 

Officer, shall— 

(1) for each agency priority goal, review with the appropriate goal leader the progress achieved during the most recent 

quarter, overall trend data, and the likelihood of meeting the 

planned level of performance; 

(2) coordinate with relevant personnel within and outside 

the agency who contribute to the accomplishment of each agency priority goal; 

(3) assess whether relevant organizations, program activities, regulations, policies, and other activities are contributing 

as planned to the agency priority goals; 

(4) categorize agency priority goals by risk of not achieving 

the planned level of performance; and 

(5) for agency priority goals at greatest risk of not meeting 

the planned level of performance, identify prospects and strategies for performance improvement, including any needed 

changes to agency program activities, regulations, policies, or 

other activities. 

SEC. 1122. TRANSPARENCY OF PROGRAMS, PRIORITY GOALS, AND RESULTS. 

(a) TRANSPARENCY OF AGENCY PROGRAMS.— (1) IN GENERAL.—Not later than October 1, 2012, the Office of Management and Budget shall— 

(A) ensure the effective operation of a single website; 

(B) at a minimum, update the website on a quarterly 

basis; and 

(C) include on the website information about each program identified by the agencies. 

(2) INFORMATION.—Information for each program described 

under paragraph(1) shall include— 

(A) an identification of how the agency defines the 

term ‘‘program’’, consistent with guidance provided by the 

Director of the Office of Management and Budget, including the program activities that are aggregated, 

disaggregated, or consolidated to be considered a program 

by the agency; 

(B) a description of the purposes of the program and 

the contribution of the program to the mission and goals 

of the agency; and 

(C) an identification of funding for the current fiscal 

year and previous 2 fiscal years. 

(b) TRANSPARENCY OF AGENCY PRIORITY GOALS AND RESULTS.—The head of each agency required to develop agency pri-
Sec. 1122 TITLE 31 OF THE UNITED STATES CODE 230 

ority goals shall make information about each agency priority goal 

available to the Office of Management and Budget for publication 

on the website, with the exception of any information covered by 

section 1120(b)(2) of this title. In addition to an identification of 

each agency priority goal, the website shall also consolidate information about each agency priority goal, including— 

(1) a description of how the agency incorporated any views 

and suggestions obtained through congressional consultations 

about the agency priority goal; 

(2) an identification of key factors external to the agency 

and beyond its control that could significantly affect the 

achievement of the agency priority goal; 

(3) a description of how each agency priority goal will be 

achieved, including— 

(A) the strategies and resources required to meet the 

priority goal; 

(B) clearly defined milestones; 

(C) the organizations, program activities, regulations, 

policies, and other activities that contribute to each goal, 

both within and external to the agency; 

(D) how the agency is working with other agencies to 

achieve the goal; and 

(E) an identification of the agency official responsible 

for achieving the priority goal; 

(4) the performance indicators to be used in measuring or 

assessing progress; 

(5) a description of how the agency ensures the accuracy 

and reliability of the data used to measure progress towards 

the priority goal, including an identification of— 

(A) the means used to verify and validate measured 

values; 

(B) the sources for the data; 

(C) the level of accuracy required for the intended use 

of the data; 

(D) any limitations to the data at the required level of 

accuracy; and 

(E) how the agency has compensated for such limitations if needed to reach the required level of accuracy; 

(6) the results achieved during the most recent quarter 

and overall trend data compared to the planned level of performance; 

(7) an assessment of whether relevant organizations, program activities, regulations, policies, and other activities are 

contributing as planned; 

(8) an identification of the agency priority goals at risk of 

not achieving the planned level of performance; and 

(9) any prospects or strategies for performance improvement. 

(c) TRANSPARENCY OF FEDERAL GOVERNMENT PRIORITY GOALS

AND RESULTS.—The Director of the Office of Management and 

Budget shall also make available on the website— 

(1) a brief description of each of the Federal Government 

priority goals required by section 1120(a) of this title; 
231 Sec. 1123 TITLE 31 OF THE UNITED STATES CODE 

(2) a description of how the Federal Government priority 

goals incorporate views and suggestions obtained through congressional consultations; 

(3) the Federal Government performance goals and performance indicators associated with each Federal Government 

priority goal as required by section 1115(a) of this title; 

(4) an identification of the lead Government official for 

each Federal Government performance goal; 

(5) the results achieved during the most recent quarter 

and overall trend data compared to the planned level of performance; 

(6) an identification of the agencies, organizations, program activities, regulations, tax expenditures, policies, and 

other activities that contribute to each Federal Government 

priority goal; 

(7) an assessment of whether relevant agencies, organizations, program activities, regulations, tax expenditures, policies, and other activities are contributing as planned; 

(8) an identification of the Federal Government priority 

goals at risk of not achieving the planned level of performance; 

and 

(9) any prospects or strategies for performance improvement. 

(d) INFORMATION ON WEBSITE.—The information made available on the website under this section shall be readily accessible 

and easily found on the Internet by the public and members and 

committees of Congress. Such information shall also be presented 

in a searchable, machine—readable format. The Director of the Office of Management and Budget shall issue guidance to ensure that 

such information is provided in a way that presents a coherent picture of all Federal programs, and the performance of the Federal 

Government as well as individual agencies. 

SEC. 1123. CHIEF OPERATION OFFICERS. 

(a) ESTABLISHMENT.—At each agency, the deputy head of agency, or equivalent, shall be the Chief Operating Officer of the agency. 

(b) FUNCTION.—Each Chief Operating Officer shall be responsible for improving the management and performance of the agency, and shall— 

(1) provide overall organization management to improve 

agency performance and achieve the mission and goals of the 

agency through the use of strategic and performance planning, 

measurement, analysis, regular assessment of progress, and 

use of performance information to improve the results 

achieved; 

(2) advise and assist the head of agency in carrying out the 

requirements of sections 1115 through 1122 of this title and 

section 306 of title 5; 

(3) oversee agency—specific efforts to improve management functions within the agency and across Government; and 

(4) coordinate and collaborate with relevant personnel 

within and external to the agency who have a significant role 

in contributing to and achieving the mission and goals of the 
Sec. 1124 TITLE 31 OF THE UNITED STATES CODE 232 

agency, such as the Chief Financial Officer, Chief Human Capital Officer, Chief Acquisition Officer/Senior Procurement Executive, Chief Information Officer, and other line of business 

chiefs at the agency. 

SEC. 1124. PERFORMANCE IMPROVEMENT OFFICERS AND THE PERFORMANCE IMPROVEMENT COUNCIL. 

(a) PERFORMANCE IMPROVEMENT OFFICERS.— (1) ESTABLISHMENT.—At each agency, the head of the 

agency, in consultation with the agency Chief Operating Officer, shall designate a senior executive of the agency as the 

agency Performance Improvement Officer. 

(2) FUNCTION.—Each Performance Improvement Officer 

shall report directly to the Chief Operating Officer. Subject to 

the direction of the Chief Operating Officer, each Performance 

Improvement Officer shall— 

(A) advise and assist the head of the agency and the 

Chief Operating Officer to ensure that the mission and 

goals of the agency are achieved through strategic and performance planning, measurement, analysis, regular assessment of progress, and use of performance information to 

improve the results achieved; 

(B) advise the head of the agency and the Chief Operating Officer on the selection of agency goals, including opportunities to collaborate with other agencies on common 

goals; 

(C) assist the head of the agency and the Chief Operating Officer in overseeing the implementation of the agency strategic planning, performance planning, and reporting 

requirements provided under sections 1115 through 1122 

of this title and sections 306 of title 5, including the contributions of the agency to the Federal Government priority goals; 

(D) support the head of agency and the Chief Operating Officer in the conduct of regular reviews of agency 

performance, including at least quarterly reviews of 

progress achieved toward agency priority goals, if applicable; 

(E) assist the head of the agency and the Chief Operating Officer in the development and use within the agency of performance measures in personnel performance appraisals, and, as appropriate, other agency personnel and 

planning processes and assessments; and 

(F) ensure that agency progress toward the achievement of all goals is communicated to leaders, managers, 

and employees in the agency and Congress, and made 

available on a public website of the agency. 

(b) PERFORMANCE IMPROVEMENT COUNCIL.— 

(1) ESTABLISHMENT.—There is established a Performance 

Improvement Council, consisting of— 

(A) the Deputy Director for Management of the Office 

of Management and Budget, who shall act as chairperson 

of the Council; 

(B) the Performance Improvement Officer from each 

agency defined in section 901(b) of this title; 
233 Sec. 1124 TITLE 31 OF THE UNITED STATES CODE 

(C) other Performance Improvement Officers as determined appropriate by the chairperson; and 

(D) other individuals as determined appropriate by the 

chairperson. 

(2) FUNCTION.—The Performance Improvement Council 

shall— 

(A) be convened by the chairperson or the designee of 

the chairperson, who shall preside at the meetings of the 

Performance Improvement Council, determine its agenda, 

direct its work, and establish and direct subgroups of the 

Performance Improvement Council, as appropriate, to deal 

with particular subject matters; 

(B) assist the Director of the Office of Management 

and Budget to improve the performance of the Federal 

Government and achieve the Federal Government priority 

goals; 

(C) assist the Director of the Office of Management 

and Budget in implementing the planning, reporting, and 

use of performance information requirements related to 

the Federal Government priority goals provided under sections 1115, 1120, 1121, and 1122 of this title; 

(D) work to resolve specific Governmentwide or crosscutting performance issues, as necessary; 

(E) facilitate the exchange among agencies of practices 

that have led to performance improvements within specific 

programs, agencies, or across agencies; 

(F) coordinate with other interagency management 

councils; 

(G) seek advice and information as appropriate from 

nonmember agencies, particularly smaller agencies; 

(H) consider the performance improvement experiences of corporations, non profit organizations, foreign, 

State, and local governments, Government employees, public sector unions, and customers of Government services; 

(I) receive such assistance, information and advice 

from agencies as the Council may request, which agencies 

shall provide to the extent permitted by law; and 

(J) develop and submit to the Director of the Office of 

Management and Budget, or when appropriate to the 

President through the Director of the Office of Management and Budget, at times and in such formats as the 

chairperson may specify, recommendations to streamline 

and improve performance management policies and requirements. 

(3) SUPPORT.— (A) IN GENERAL.—The Administrator of General Services shall provide administrative and other support for the 

Council to implement this section. 

(B) PERSONNEL.—The heads of agencies with Performance Improvement Officers serving on the Council shall, as 

appropriate and to the extent permitted by law, provide at 

the request of the chairperson of the Performance Improvement Council up to 2 personnel authorizations to serve at 

the direction of the chairperson. 
Sec. 1125 TITLE 31 OF THE UNITED STATES CODE 234 

SEC. 1125. ELIMINATION OF UNNECESSARY AGENCY REPORTING. 

(a) AGENCY IDENTIFICATION OF UNNECESSARY REPORTS.—Annually, based on guidance provided by the Director of the Office of 

Management and Budget, the Chief Operating Officer at each 

agency shall— 

(1) compile a list that identifies all plans and reports the 

agency produces for Congress, in accordance with statutory requirements or as directed in congressional reports; 

(2) analyze the list compiled under paragraph (1), identify 

which plans and reports are outdated or duplicative of other 

required plans and reports, and refine the list to include only 

the plans and reports identified to be outdated or duplicative; 

(3) consult with the congressional committees that receive 

the plans and reports identified under paragraph(2) to determine whether those plans and reports are no longer useful to 

the committees and could be eliminated or consolidated with 

other plans and reports; and 

(4) provide a total count of plans and reports compiled 

under paragraph (1) and the list of outdated and duplicative 

reports identified under paragraph (2) to the Director of the 

Office of Management and Budget. 

(b) PLANS AND REPORTS.— 

(1) FIRST YEAR.—During the first year of implementation 

of this section, the list of plans and reports identified by each 

agency as outdated or duplicative shall be not less than 10 percent of all plans and reports identified under subsection (a)(1). 

(2) SUBSEQUENT YEARS.—In each year following the first year 

described under paragraph(1), the Director of the Office of Management and Budget shall determine the minimum percent of plans 

and reports to be identified as outdated or duplicative on each list 

of plans and reports. 

(c) REQUEST FOR ELIMINATION OF UNNECESSARY REPORTS.—In 

addition to including the list of plans and reports determined to be 

outdated or duplicative by each agency in the budget of the United 

States Government, as provided by section 1105(a)(37), the Director 

of the Office of Management and Budget may concurrently submit 

to Congress legislation to eliminate or consolidate such plans and 

reports. 
235 

88The Antideficiency Act prohibits federal employees from: 

Making or authorizing an expenditure from, or creating or authorizing an obligation under, 

any appropriation or fund in excess of the amount available in the appropriation or fund unless 

authorized by law. 31 U.S.C. § 1341(a)(1)(A). 

Involving the government in any obligation to pay money before funds have been appropriated 

for that purpose, unless otherwise allowed by law. 31 U.S.C. § 1341(a)(1)(B). 

Accepting voluntary services for the United States, or employing personal services not authorized by law, except in cases of emergency involving the safety of human life or the protection 

of property. 31 U.S.C. § 1342. 

Making obligations or expenditures in excess of an apportionment or reapportionment, or in 

excess of the amount permitted by agency regulations. 31 U.S.C. § 1517(a). 

THE ANTIDEFICIENCY ACT 88

TITLE 31—MONEY AND FINANCE 

SUBTITLE II—THE BUDGET PROCESS 

CHAPTER 13—APPROPRIATIONS 

SUBCHAPTER III—LIMITATIONS, EXCEPTIONS, AND 

PENALTIES 

SEC. 1341. LIMITATIONS ON EXPENDING AND OBLIGATING AMOUNTS. 

(a)(1) An officer or employee of the United States Government 

or of the District of Columbia government may not— 

(A) make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund 

for the expenditure or obligation; 

(B) involve either government in a contract or obligation for the payment of money before an appropriation is 

made unless authorized by law; 

(C) make or authorize an expenditure or obligation of 

funds required to be sequestered under section 252 of the 

Balanced Budget and Emergency Deficit Control Act of 

1985; or 

(D) involve either government in a contract or obligation for the payment of money required to be sequestered 

under section 252 of the Balanced Budget and Emergency 

Deficit Control Act of 1985. 

(2) This subsection does not apply to a corporation getting 

amounts to make loans (except paid in capital amounts) without legal liability of the United States Government. 

(b) An article to be used by an executive department in the 

District of Columbia that could be bought out of an appropriation 

made to a regular contingent fund of the department may not be 

bought out of another amount available for obligation. 

SEC. 1342. LIMITATION ON VOLUNTARY SERVICES. 

An officer or employee of the United States Government or of 

the District of Columbia government may not accept voluntary 

services for either government or employ personal services exceeding that authorized by law except for emergencies involving the 

safety of human life or the protection of property. This section does 
Sec. 1342 TITLE 31 OF THE UNITED STATES CODE 236 

not apply to a corporation getting amounts to make loans (except 

paid in capital amounts) without legal liability of the United States 

Government. As used in this section, the term ‘‘emergencies involving the safety of human life or the protection of property’’ does not 

include ongoing, regular functions of government the suspension of 

which would not imminently threaten the safety of human life or 

the protection of property. 

* * * * * * * 
237 

89Sec. 1514 of this title reads as follows: 

‘‘Sec. 1514. Administrative division of apportionments 

‘‘(a) The official having administrative control of an appropriation available to the legislative 

branch, the judicial branch, the United States International Trade Commission, or the District 

of Columbia government, and, subject to the approval of the President, the head of each executive agency (except the Commission) shall prescribe by regulation a system of administrative 

control not inconsistent with accounting procedures prescribed under law. The system shall be 

designed to—(1) restrict obligations or expenditures from each appropriation to the amount of 

apportionments or reapportionments of the appropriation; and 

‘‘(2) enable the official or the head of the executive agency to fix responsibility for an obligation or expenditure exceeding an apportionment or reapportionment. 

‘‘(b) To have a simplified system for administratively dividing appropriations, the head of each 

executive agency (except the Commission) shall work toward the objective of financing each operating unit, at the highest practical level, from not more than one administrative division for 

each appropriation affecting the unit.’’ 

TITLE 31—MONEY AND FINANCE 

SUBTITLE II—THE BUDGET PROCESS 

CHAPTER 15—APPROPRIATION ACCOUNTING 

SUBCHAPTER II—APPORTIONMENT 

SEC. 1517. PROHIBITED OBLIGATIONS AND EXPENDITURES. 

(a) An officer or employee of the United States Government or 

of the District of Columbia government may not make or authorize 

an expenditure or obligation exceeding— 

(1) an apportionment; or 

(2) the amount permitted by regulations prescribed under 

section 1514(a) of this title.89

(b) If an officer or employee of an executive agency or of the 

District of Columbia government violates subsection (a) of this section, the head of the executive agency or the Mayor of the District 

of Columbia, as the case may be, shall report immediately to the 

President and Congress all relevant facts and a statement of actions taken. A copy of each report shall also be transmitted to the 

Comptroller General on the same date the report is transmitted to 

the President and Congress. 
238 

86Section 3101A provides for revisions to this number, and is set forth on this page. This section was added by the Budget Control Act of 2011 (Public Law 112–25). 87 Rule XLIX was recodified as Rule XXIII, later changed to Rule XXVIII, which automatically 

enrolled a Joint Resolution increasing the debt limit upon the adoption of a conference report 

on the budget. This Rule was repealed at the beginning of the 112th Congress. 

PUBLIC DEBT 

TITLE 31 OF THE UNITED STATES CODE 

CHAPTER 31—PUBLIC DEBT 

SUBCHAPTER I—BORROWING AUTHORITY 

SEC. 3101. PUBLIC DEBT LIMIT. 

(a) In this section, the current redemption value of an obligation issued on a discount basis and redeemable before maturity at 

the option of its holder is deemed to be the face amount of the obligation. 

(b) The face amount of obligations issued under this chapter 

and the face amount of obligations whose principal and interest are 

guaranteed by the United States Government (except guaranteed 

obligations held by the Secretary of the Treasury) may not be more 

than $14,294,000,000,000 86, outstanding at one time, subject to 

changes periodically made in that amount as provided by law 

through the congressional budget process described in Rule XLIX 87

of the Rules of the House of Representatives or as provided by section 3101A or otherwise. 

(c) For purposes of this section, the face amount, for any 

month, of any obligation issued on a discount basis that is not redeemable before maturity at the option of the holder of the obligation is an amount equal to the sum of— 

(1) the original issue price of the obligation, plus 

(2) the portion of the discount on the obligation attributable to periods before the beginning of such month (as determined under the principles of section 1272(a) of the Internal 

Revenue Code of 1986 without regard to any exceptions contained in paragraph (2) of such section). 

SEC. 3101A. PRESIDENTIAL MODIFICATION OF THE DEBT CEILING. 

(a) IN GENERAL.— 

(1) $900 BILLION.— 

(A) CERTIFICATION.—If, not later than December 31, 

2011, the President submits a written certification to Congress that the President has determined that the debt subject to limit is within $100,000,000,000 of the limit in section 3101(b) and that further borrowing is required to 

meet existing commitments, the Secretary of the Treasury 

may exercise authority to borrow an additional 

$900,000,000,000, subject to the enactment of a joint resolution of disapproval enacted pursuant to this section. 
239 Sec. 3101A TITLE 31 OF THE UNITED STATES CODE 

Upon submission of such certification, the limit on debt 

provided in section 3101(b) (referred to in this section as 

the ‘‘debt limit’’) is increased by $400,000,000,000. 

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

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

through (f). The joint resolution of disapproval considered 

under this section shall contain only the language provided 

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

without enactment of a joint resolution of disapproval 

under this section, the debt limit is increased by an additional $500,000,000,000. 

(2) ADDITIONAL AMOUNT.— (A) CERTIFICATION.—If, after the debt limit is increased by $900,000,000,000 under paragraph (1), the 

President submits a written certification to Congress that 

the President has determined that the debt subject to limit 

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

and that further borrowing is required to meet existing 

commitments, the Secretary of the Treasury may, subject 

to the enactment of a joint resolution of disapproval enacted pursuant to this section, exercise authority to borrow 

an additional amount equal to— 

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

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

United States has submitted to the States for their 

ratification a proposed amendment to the Constitution 

of the United States pursuant to a joint resolution entitled ‘‘Joint resolution proposing a balanced budget 

amendment to the Constitution of the United States’’; 

or 

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

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

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

Control Act of 2011 is enacted, an amount equal to the 

amount of that deficit reduction, but not greater than 

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

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

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

through (f). The joint resolution of disapproval considered 

under this section shall contain only the language provided 

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

without enactment of a joint resolution of disapproval 

under this section, the debt limit is increased by the 

amount authorized under subparagraph (A). 

(b) JOINT RESOLUTION OF DISAPPROVAL.— 

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

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

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

days after the date on which Congress receives a certification 

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

Congress receives the certification described in subsection 
Sec. 3101A TITLE 31 OF THE UNITED STATES CODE 240 

(a)(2) (regardless of whether Congress is in session), there is 

enacted into law a joint resolution disapproving the President’s 

exercise of authority with respect to such additional amount. 

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

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

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

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

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

on which the Senate is in session); and 

(ii) for the certification described in subsection 

(a)(2), that is introduced between the date the certification is received and 3 calendar days after that date; 

(B) which does not have a preamble; 

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

of authority to increase the debt limit, as submitted under 

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

llllll’’ (with the blank containing the date of such 

submission); and 

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

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

exercised pursuant to the certification under section 

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

(c) EXPEDITED CONSIDERATION IN HOUSE OF REPRESENTATIVES.— 

(1) RECONVENING.—Upon receipt of a certification described in subsection (a)(2), the Speaker, if the House would 

otherwise be adjourned, shall notify the Members of the House 

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

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

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

House of Representatives to which a joint resolution is referred 

shall report it to the House without amendment not later than 

5 calendar days after the date of introduction of a joint resolution described in subsection (a). If a committee fails to report 

the joint resolution within that period, the committee shall be 

discharged from further consideration of the joint resolution 

and the joint resolution shall be referred to the appropriate 

calendar. 

(3) PROCEEDING TO CONSIDERATION.—After each committee 

authorized to consider a joint resolution reports it to the House 

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

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

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

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

the motion are waived. Such a motion shall not be in order 

after the House has disposed of a motion to proceed on a joint 

resolution addressing a particular submission. The previous 

question shall be considered as ordered on the motion to its 

adoption without intervening motion. The motion shall not be 
241 Sec. 3101A TITLE 31 OF THE UNITED STATES CODE 

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

is disposed of shall not be in order. 

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

and against its consideration are waived. The previous question shall be considered as ordered on the joint resolution to 

its passage without intervening motion except two hours of debate equally divided and controlled by the proponent and an 

opponent. A motion to reconsider the vote on passage of the 

joint resolution shall not be in order. 

(d) EXPEDITED PROCEDURE IN SENATE.— (1) RECONVENING.—Upon receipt of a certification under 

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

more than 2 days, the majority leader of the Senate, after consultation with the minority leader of the Senate, shall notify 

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

Senate shall convene not later than the second calendar day 

after receipt of such message. 

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

Senate, the joint resolution shall be immediately placed on the 

calendar. 

(3) FLOOR CONSIDERATION.— 

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

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

during the period beginning on the day after the date on 

which Congress receives a certification under subsection 

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

ending on September 14, 2011, and for the certification described in subsection (a)(2), on the 6th day after the date 

on which Congress receives a certification under subsection (a) (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the joint resolution, and all points of order 

against the joint resolution (and against consideration of 

the joint resolution) are waived. The motion to proceed is 

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

postpone. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If 

a motion to proceed to the consideration of the resolution 

is agreed to, the joint resolution shall remain the unfinished business until disposed of. 

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

which shall be divided equally between the majority and 

minority leaders or their designees. A motion further to 

limit debate is in order and not debatable. An amendment 

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

consideration of other business, or a motion to recommit 

the joint resolution is not in order. 

(C) VOTE ON PASSAGE.—If the Senate has voted to proceed to a joint resolution, the vote on passage of the joint 

resolution shall occur immediately following the conclusion 

of consideration of the joint resolution, and a single 
Sec. 3101A TITLE 31 OF THE UNITED STATES CODE 242 

quorum call at the conclusion of the debate if requested in 

accordance with the rules of the Senate. 

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

from the decisions of the Chair relating to the application 

of the rules of the Senate, as the case may be, to the procedure relating to a joint resolution shall be decided without 

debate. 

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

amendment in either the House of Representatives or the Senate. 

(f) COORDINATION WITH ACTION BY OTHER HOUSE.— (1) IN GENERAL.—If, before passing the joint resolution, 

one House receives from the other a joint resolution— 

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

referred to a committee; and 

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

same as if no joint resolution had been received from the 

other House until the vote on passage, when the joint resolution received from the other House shall supplant the 

joint resolution of the receiving House. 

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

If the Senate fails to introduce or consider a joint resolution 

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

entitled to expedited floor procedures under this section. 

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

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

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

(4) CONSIDERATION AFTER PASSAGE.— 

(A) If Congress passes a joint resolution, the period beginning on the date the President is presented with the 

joint resolution and ending on the date the President 

signs, allows to become law without his signature, or vetoes and returns the joint resolution (but excluding days 

when either House is not in session) shall be disregarded 

in computing the appropriate calendar day period described in subsection (b)(1). 

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

section shall be 1 hour equally divided between the majority and minority leaders or their designees. 

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

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

veto of the joint resolution with respect to authority exercised 

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

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

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

(6) SEQUESTRATION.— 

(A) If within the 50-calendar day period described in 

subsection (b)(1), the President signs the joint resolution, 

the President allows the joint resolution to become law 

without his signature, or Congress overrides a veto of the 

joint resolution with respect to authority exercised pursuant to paragraph (1) of subsection (a), there shall be a se-
243 Sec. 3101A TITLE 31 OF THE UNITED STATES CODE 

questration to reduce spending by $400,000,000,000. OMB 

shall implement the sequestration forthwith. 

(B) OMB shall implement each half of such sequestration in accordance with section 255, section 256, and subsections (c), (d), (e), and (f) of section 253 of the Balanced 

Budget and Emergency Deficit Control Act of 1985, and for 

the purpose of such implementation the term ‘‘excess deficit’’ means the amount specified in subparagraph (A). 

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

subsection and subsections (b), (c), (d), (e), and (f) (other than paragraph (6)) are enacted by Congress— 

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

and House of Representatives, respectively, and as such it is 

deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in 

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

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

rules; and 

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

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

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

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

* * * * * * * 
244 

SUBTITLE III—FINANCIAL MANAGEMENT 

CHAPTER 33—DEPOSITING, KEEPING, AND PAYING 

MONEY 

SUBCHAPTER II—PAYMENTS 

SEC. 3321. DISBURSING AUTHORITY IN THE EXECUTIVE BRANCH. 

(a) Except as provided in this section or another law, only officers and employees of the Department of the Treasury designated 

by the Secretary of the Treasury as disbursing officials may disburse public money available for expenditure by an executive agency. 

(b) For economy and efficiency, the Secretary may delegate the 

authority to disburse public money to officers and employees of 

other executive agencies. 

(c) The head of each of the following executive agencies shall 

designate personnel of the agency as disbursing officials to disburse 

public money available for expenditure by the agency: 

(1) United States Marshal’s Office. 

(2) The Department of Defense. 

(3) The Department of Homeland Security (with respect to 

public money available for expenditure by the Coast Guard 

when it is not operating as a service in the Navy). 

(d) On request of the Secretary and with the approval of the 

head of an executive agency referred to in subsection (c) of this section, facilities of the agency may be used to assist in disbursing 

public money available for expenditure by another executive agency. 
245 

UNFUNDED MANDATES REFORM ACT OF 1995 

247 

UNFUNDED MANDATES REFORM ACT OF 1995 

AN ACT To curb the practice of imposing unfunded Federal mandates on States and 

local governments; to strengthen the partnership between the Federal Government and State, local and tribal governments; to end the imposition, in the absence of full consideration by Congress, of Federal mandates on State, local, and 

tribal governments without adequate funding, in a manner that may displace 

other essential governmental priorities; and to ensure that the Federal Government pays the costs incurred by those governments in complying with certain requirements under Federal statutes and regulations, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, 

SEC. 1. ø2 U.S.C. 1501 note¿ SHORT TITLE. 

This Act may be cited as the ‘‘Unfunded Mandates Reform Act 

of 1995’’. 

SEC. 2. ø2 U.S.C. 1501 note¿ PURPOSES. 

The purposes of this Act are—— 

(1) to strengthen the partnership between the Federal 

Government and State, local, and tribal governments; 

(2) to end the imposition, in the absence of full consideration by Congress, of Federal mandates on State, local, and 

tribal governments without adequate Federal funding, in a 

manner that may displace other essential State, local, and tribal governmental priorities; 

(3) to assist Congress in its consideration of proposed legislation establishing or revising Federal programs containing 

Federal mandates affecting State, local, and tribal governments, and the private sector by—— 

(A) providing for the development of information about 

the nature and size of mandates in proposed legislation; 

and 

(B) establishing a mechanism to bring such information to the attention of the Senate and the House of Representatives before the Senate and the House of Representatives vote on proposed legislation; 

(4) to promote informed and deliberate decisions by Congress on the appropriateness of Federal mandates in any particular instance; 

(5) to require that Congress consider whether to provide 

funding to assist State, local, and tribal governments in complying with Federal mandates, to require analyses of the impact of private sector mandates, and through the dissemination 

of that information provide informed and deliberate decisions 

by Congress and Federal agencies and retain competitive balance between the public and private sectors; 

(6) to establish a point-of-order vote on the consideration 

in the Senate and House of Representatives of legislation con-
Sec. 3 UNFUNDED MANDATES REFORM ACT OF 1995 248 

taining significant Federal intergovernmental mandates without providing adequate funding to comply with such mandates; 

(7) to assist Federal agencies in their consideration of proposed regulations affecting State, local, and tribal governments, by—— 

(A) requiring that Federal agencies develop a process 

to enable the elected and other officials of State, local, and 

tribal governments to provide input when Federal agencies 

are developing regulations; and 

(B) requiring that Federal agencies prepare and consider estimates of the budgetary impact of regulations containing Federal mandates upon State, local, and tribal governments and the private sector before adopting such regulations, and ensuring that small governments are given 

special consideration in that process; and 

(8) to begin consideration of the effect of previously imposed Federal mandates, including the impact on State, local, 

and tribal governments of Federal court interpretations of Federal statutes and regulations that impose Federal intergovernmental mandates. 

SEC. 3. ø2 U.S.C. 1502. note¿ DEFINITIONS. 

For purposes of this Act—— 

(1) except as provided in section 305 of this Act, the terms 

defined under section 421 of the Congressional Budget and Impoundment Control Act of 1974 (as added by section 101 of this 

Act) shall have the meanings as so defined; and 

(2) the term ‘‘Director’’ means the Director of the Congressional Budget Office. 

SEC. 4. ø2 U.S.C. 1503¿ EXCLUSIONS. 

This Act shall not apply to any provision in a bill, joint resolution, amendment, motion, or conference report before Congress and 

any provision in a proposed or final Federal regulation that—— 

(1) enforces constitutional rights of individuals; 

(2) establishes or enforces any statutory rights that prohibit discrimination on the basis of race, color, religion, sex, 

national origin, age, handicap, or disability; 

(3) requires compliance with accounting and auditing procedures with respect to grants or other money or property provided by the Federal Government; 

(4) provides for emergency assistance or relief at the request of any State, local, or tribal government or any official 

of a State, local, or tribal government; 

(5) is necessary for the national security or the ratification 

or implementation of international treaty obligations; 

(6) the President designates as emergency legislation and 

that the Congress so designates in statute; or 

(7) relates to the old-age, survivors, and disability insurance program under title II of the Social Security Act (including taxes imposed by sections 3101(a) and 3111(a) of the Internal Revenue Code of 1986 (relating to old-age, survivors, and 

disability insurance)). 
249 Sec. 106 UNFUNDED MANDATES REFORM ACT OF 1995 

SEC. 5. ø2 U.S.C. 1504¿ AGENCY ASSISTANCE. 

Each agency shall provide to the Director such information and 

assistance as the Director may reasonably request to assist the Director in carrying out this Act. 

Title I—Legislative 

Accountability and Reform 

SEC. 101. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM. 

[Omitted] 

SEC. 102. ASSISTANCE TO COMMITTEES AND STUDIES. 

[Omitted] 

SEC. 103. ø2 U.S.C. 1511¿ COST OF REGULATIONS. 

(a) SENSE OF THE CONGRESS.—It is the sense of the Congress 

that Federal agencies should review and evaluate planned regulations to ensure that the cost estimates provided by the Congressional Budget Office will be carefully considered as regulations are 

promulgated. 

(b) STATEMENT OF COST.—At the request of a committee chairman or ranking minority member, the Director shall, to the extent 

practicable, prepare a comparison between— 

(1) an estimate by the relevant agency, prepared under 

section 202 of this Act, of the costs of regulations implementing 

an Act containing a Federal mandate; and 

(2) the cost estimate prepared by the Congressional Budget 

Office for such Act when it was enacted by the Congress. 

(c) COOPERATION OF OFFICE OF MANAGEMENT AND BUDGET.— 

At the request of the Director of the Congressional Budget Office, 

the Director of the Office of Management and Budget shall provide 

data and cost estimates for regulations implementing an Act containing a Federal mandate covered by part B of title IV of the Congressional Budget and Impoundment Control Act of 1974 (as added 

by section 101 of this Act). 

SEC. 104. REPEAL OF CERTAIN ANALYSIS BY CONGRESSIONAL BUDGET OFFICE. 

[Omitted] 

SEC. 105. ø2 U.S.C. 1512¿ CONSIDERATION FOR FEDERAL FUNDING. 

Nothing in this Act shall preclude a State, local, or tribal government that already complies with all or part of the Federal intergovernmental mandates included in the bill, joint resolution, 

amendment, motion, or conference report from consideration for 

Federal funding under section 425(a)(2) of the Congressional Budget and Impoundment Control Act of 1974 (as added by section 101 

of this Act) for the cost of the mandate, including the costs the 

State, local, or tribal government is currently paying and any additional costs necessary to meet the mandate. 

SEC. 106. ø2 U.S.C. 1513¿ IMPACT ON LOCAL GOVERNMENTS. 

(a) FINDINGS.—The Senate finds that— 

(1) the Congress should be concerned about shifting costs 

from Federal to State and local authorities and should be 
Sec. 107 UNFUNDED MANDATES REFORM ACT OF 1995 250 

equally concerned about the growing tendency of States to shift 

costs to local governments; 

(2) cost shifting from States to local governments has, in 

many instances, forced local governments to raise property 

taxes or curtail sometimes essential services; and 

(3) increases in local property taxes and cuts in essential 

services threaten the ability of many citizens to attain and 

maintain the American dream of owning a home in a safe, secure community. 

(b) SENSE OF THE SENATE.—It is the sense of the Senate that— 

(1) the Federal Government should not shift certain costs 

to the State, and States should end the practice of shifting 

costs to local governments, which forces many local governments to increase property taxes; 

(2) States should end the imposition, in the absence of full 

consideration by their legislatures, of State issued mandates on 

local governments without adequate State funding, in a manner that may displace other essential government priorities; 

and 

(3) one primary objective of this Act and other efforts to 

change the relationship among Federal, State, and local governments should be to reduce taxes and spending at all levels 

and to end the practice of shifting costs from one level of government to another with little or no benefit to taxpayers. 

SEC. 107. ø2 U.S.C. 1514¿ ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES. 

(a) MOTIONS TO STRIKE IN THE COMMITTEE OF THE WHOLE.— 

Clause 5 of rule XXIII of the Rules of the House of Representatives 

is amended by adding at the end the following: 

‘‘(c) In the consideration of any measure for amendment in the 

Committee of the Whole containing any Federal mandate the direct 

costs of which exceed the threshold in section 424(a)(1) of the Unfunded Mandate Reform Act of 1995, it shall always be in order, 

unless specifically waived by terms of a rule governing consideration of that measure, to move to strike such Federal mandate 

from the portion of the bill then open to amendment.’’. 

(b) COMMITTEE ON RULES REPORTS ON WAIVED POINTS OF

ORDER.—The Committee on Rules shall include in the report required by clause 1(d) of rule XI (relating to its activities during the 

Congress) of the Rules of the House of Representatives a separate 

item identifying all waivers of points of order relating to Federal 

mandates, listed by bill or joint resolution number and the subject 

matter of that measure. 

SEC. 108. ø2 U.S.C. 1515¿ EXERCISE OF RULEMAKING POWERS. 

The provisions of sections 101 and 107 are enacted by Congress—— 

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

and the House of Representatives, respectively, and as such 

they shall be considered as part of the rules of such House, respectively, and such rules shall supersede other rules only to 

the extent that they are inconsistent therewith; and 

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

House to change such rules (so far as relating to such House) 
251 Sec. 202 UNFUNDED MANDATES REFORM ACT OF 1995 

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

in the case of any other rule of each House. 

SEC. 109. ø2 U.S.C. 1516¿ AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Congressional Budget Office $4,500,000 for each of the fiscal years 1996, 1997, 

1998, 1999, 2000, 2001, and 2002 to carry out the provisions of this 

title. 

SEC. 110. ø2 U.S.C. 1511 note¿ EFFECTIVE DATE. 

This title shall take effect on January 1, 1996 or on the date 

90 days after appropriations are made available as authorized 

under section 109, whichever is earlier and shall apply to legislation considered on and after such date. 

Title II—Regulatory 

Accountability and Reform 

SEC. 201. ø2 U.S.C. 1531¿ REGULATORY PROCESS. 

Each agency shall, unless otherwise prohibited by law, assess 

the effects of Federal regulatory actions on State, local, and tribal 

governments, and the private sector (other than to the extent that 

such regulations incorporate requirements specifically set forth in 

law). 

SEC. 202. ø2 U.S.C. 1532¿ STATEMENTS TO ACCOMPANY SIGNIFICANT 

REGULATORY ACTIONS. 

(a) IN GENERAL.—Unless otherwise prohibited by law, before 

promulgating any general notice of proposed rulemaking that is 

likely to result in promulgation of any rule that includes any Federal mandate that may result in the expenditure by State, local, 

and tribal governments, in the aggregate, or by the private sector, 

of $100,000,000 or more (adjusted annually for inflation) in any 1 

year, and before promulgating any final rule for which a general 

notice of proposed rulemaking was published, the agency shall prepare a written statement containing— 

(1) an identification of the provision of Federal law under 

which the rule is being promulgated; 

(2) a qualitative and quantitative assessment of the anticipated costs and benefits of the Federal mandate, including the 

costs and benefits to State, local, and tribal governments or the 

private sector, as well as the effect of the Federal mandate on 

health, safety, and the natural environment and such an assessment shall include— 

(A) an analysis of the extent to which such costs to 

State, local, and tribal governments may be paid with Federal financial assistance (or otherwise paid for by the Federal Government); and 

(B) the extent to which there are available Federal resources to carry out the intergovernmental mandate; 

(3) estimates by the agency, if and to the extent that the 

agency determines that accurate estimates are reasonably feasible, of— 

(A) the future compliance costs of the Federal mandate; and 
Sec. 203 UNFUNDED MANDATES REFORM ACT OF 1995 252 

(B) any disproportionate budgetary effects of the Federal mandate upon any particular regions of the nation or 

particular State, local, or tribal governments, urban or 

rural or other types of communities, or particular segments of the private sector; 

(4) estimates by the agency of the effect on the national 

economy, such as the effect on productivity, economic growth, 

full employment, creation of productive jobs, and international 

competitiveness of United States goods and services, if and to 

the extent that the agency in its sole discretion determines 

that accurate estimates are reasonably feasible and that such 

effect is relevant and material; and 

(5)(A) a description of the extent of the agency’s prior consultation with elected representatives (under section 204) of 

the affected State, local, and tribal governments; 

(B) a summary of the comments and concerns that 

were presented by State, local, or tribal governments either orally or in writing to the agency; and 

(C) a summary of the agency’s evaluation of those 

comments and concerns. 

(b) PROMULGATION.—In promulgating a general notice of proposed rulemaking or a final rule for which a statement under subsection (a) is required, the agency shall include in the promulgation 

a summary of the information contained in the statement. 

(c) PREPARATION IN CONJUNCTION WITH OTHER STATEMENT.— 

Any agency may prepare any statement required under subsection 

(a) in conjunction with or as a part of any other statement or analysis, provided that the statement or analysis satisfies the provisions of subsection (a). 

SEC. 203. ø2 U.S.C. 1533¿ SMALL GOVERNMENT AGENCY PLAN. 

(a) EFFECTS ON SMALL GOVERNMENTS.—Before establishing 

any regulatory requirements that might significantly or uniquely 

affect small governments, agencies shall have developed a plan 

under which the agency shall— 

(1) provide notice of the requirements to potentially affected small governments, if any; 

(2) enable officials of affected small governments to provide 

meaningful and timely input in the development of regulatory 

proposals containing significant Federal intergovernmental 

mandates; and 

(3) inform, educate, and advise small governments on compliance with the requirements. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to each agency to carry out the provisions of this 

section and for no other purpose, such sums as are necessary. 

SEC. 204. ø2 U.S.C. 1534¿ STATE, LOCAL, AND TRIBAL GOVERNMENT 

INPUT. 

(a) IN GENERAL.—Each agency shall, to the extent permitted in 

law, develop an effective process to permit elected officers of State, 

local, and tribal governments (or their designated employees with 

authority to act on their behalf) to provide meaningful and timely 

input in the development of regulatory proposals containing significant Federal intergovernmental mandates. 
253 Sec. 206 UNFUNDED MANDATES REFORM ACT OF 1995 

(b) MEETINGS BETWEEN STATE, LOCAL, TRIBAL AND FEDERAL

OFFICERS.—The Federal Advisory Committee Act (5 U.S.C. App.) 

shall not apply to actions in support of intergovernmental communications where— 

(1) meetings are held exclusively between Federal officials 

and elected officers of State, local, and tribal governments (or 

their designated employees with authority to act on their behalf) acting in their official capacities; and 

(2) such meetings are solely for the purposes of exchanging 

views, information, or advice relating to the management or 

implementation of Federal programs established pursuant to 

public law that explicitly or inherently share intergovernmental responsibilities or administration. 

(c) IMPLEMENTING GUIDELINES.—No later than 6 months after 

the date of enactment of this Act, the President shall issue guidelines and instructions to Federal agencies for appropriate implementation of subsections (a) and (b) consistent with applicable laws 

and regulations. 

SEC. 205. ø2 U.S.C. 1535¿ LEAST BURDENSOME OPTION OR EXPLANATION REQUIRED. 

(a) IN GENERAL.—Except as provided in subsection (b), before 

promulgating any rule for which a written statement is required 

under section 202, the agency shall identify and consider a reasonable number of regulatory alternatives and from those alternatives 

select the least costly, most cost-effective or least burdensome alternative that achieves the objectives of the rule, for— 

(1) State, local, and tribal governments, in the case of a 

rule containing a Federal intergovernmental mandate; and 

(2) the private sector, in the case of a rule containing a 

Federal private sector mandate. 

(b) EXCEPTION.—The provisions of subsection (a) shall apply 

unless— 

(1) the head of the affected agency publishes with the final 

rule an explanation of why the least costly, most cost-effective 

or least burdensome method of achieving the objectives of the 

rule was not adopted; or 

(2) the provisions are inconsistent with law. 

(c) OMB CERTIFICATION.—No later than 1 year after the date 

of the enactment of this Act, the Director of the Office of Management and Budget shall certify to Congress, with a written explanation, agency compliance with this section and include in that certification agencies and rulemakings that fail to adequately comply 

with this section. 

SEC. 206. ø2 U.S.C. 1536¿ ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE. 

The Director of the Office of Management and Budget shall— 

(1) collect from agencies the statements prepared under 

section 202; and 

(2) periodically forward copies of such statements to the 

Director of the Congressional Budget Office on a reasonably 

timely basis after promulgation of the general notice of proposed rulemaking or of the final rule for which the statement 

was prepared. 
Sec. 207 UNFUNDED MANDATES REFORM ACT OF 1995 254 

SEC. 207. ø2 U.S.C. 1537¿ PILOT PROGRAM ON SMALL GOVERNMENT 

FLEXIBILITY. 

(a) IN GENERAL.—The Director of the Office of Management 

and Budget, in consultation with Federal agencies, shall establish 

pilot programs in at least 2 agencies to test innovative, and more 

flexible regulatory approaches that— 

(1) reduce reporting and compliance burdens on small governments; and 

(2) meet overall statutory goals and objectives. 

(b) PROGRAM FOCUS.—The pilot programs shall focus on rules 

in effect or proposed rules, or a combination thereof. 

SEC. 208. ø2 U.S.C. 1538¿ ANNUAL STATEMENTS TO CONGRESS ON 

AGENCY COMPLIANCE. 

No later than 1 year after the effective date of this title and 

annually thereafter, the Director of the Office of Management and 

Budget shall submit to the Congress, including the Committee on 

Governmental Affairs of the Senate and the Committee on Government Reform and Oversight of the House of Representatives, a 

written report detailing compliance by each agency during the preceding reporting period with the requirements of this title. 

SEC. 209. ø2 U.S.C. 1531 note¿ EFFECTIVE DATE. 

This title and the amendments made by this title shall take effect on the date of the enactment of this Act. 

Title III—Review of Federal Mandates 

SEC. 301. ø2 U.S.C. 1551¿ BASELINE STUDY OF COSTS AND BENEFITS. 

(a) IN GENERAL.—No later than 18 months after the date of enactment of this Act, the Advisory Commission on Intergovernmental Relations (hereafter in this title referred to as the ‘‘Advisory 

Commission’’), in consultation with the Director, shall complete a 

study to examine the measurement and definition issues involved 

in calculating the total costs and benefits to State, local, and tribal 

governments of compliance with Federal law. 

(b) CONSIDERATIONS.—The study required by this section shall 

consider—— 

(1) the feasibility of measuring indirect costs and benefits 

as well as direct costs and benefits of the Federal, State, local, 

and tribal relationship; and 

(2) how to measure both the direct and indirect benefits of 

Federal financial assistance and tax benefits to State, local, 

and tribal governments. 

SEC. 302. ø2 U.S.C. 1552¿ REPORT ON FEDERAL MANDATES BY ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS. 

(a) IN GENERAL.—The Advisory Commission on Intergovernmental Relations shall in accordance with this section—— 

(1) investigate and review the role of Federal mandates in 

intergovernmental relations and their impact on State, local, 

tribal, and Federal government objectives and responsibilities, 

and their impact on the competitive balance between State, 

local, and tribal governments, and the private sector and con-
255 Sec. 302 UNFUNDED MANDATES REFORM ACT OF 1995 

sider views of and the impact on working men and women on 

those same matters; 

(2) investigate and review the role of unfunded State mandates imposed on local governments; 

(3) make recommendations to the President and the Congress regarding—— 

(A) allowing flexibility for State, local, and tribal governments in complying with specific Federal mandates for 

which terms of compliance are unnecessarily rigid or complex; 

(B) reconciling any 2 or more Federal mandates which 

impose contradictory or inconsistent requirements; 

(C) terminating Federal mandates which are duplicative, obsolete, or lacking in practical utility; 

(D) suspending, on a temporary basis, Federal mandates which are not vital to public health and safety and 

which compound the fiscal difficulties of State, local, and 

tribal governments, including recommendations for triggering such suspension; 

(E) consolidating or simplifying Federal mandates, or 

the planning or reporting requirements of such mandates, 

in order to reduce duplication and facilitate compliance by 

State, local, and tribal governments with those mandates; 

(F) establishing common Federal definitions or standards to be used by State, local, and tribal governments in 

complying with Federal mandates that use different definitions or standards for the same terms or principles; and 

(G)(i) the mitigation of negative impacts on the private 

sector that may result from relieving State, local, and tribal governments from Federal mandates (if and to the extent that such negative impacts exist on the private sector); and 

(ii) the feasibility of applying relief from Federal 

mandates in the same manner and to the same extent 

to private sector entities as such relief is applied to 

State, local, and tribal governments; and 

(4) identify and consider in each recommendation made 

under paragraph (3), to the extent practicable—— 

(A) the specific Federal mandates to which the recommendation applies, including requirements of the departments, agencies, and other entities of the Federal Government that State, local, and tribal governments utilize 

metric systems of measurement; and 

(B) any negative impact on the private sector that may 

result from implementation of the recommendation. 

(b) CRITERIA.—— 

(1) IN GENERAL.—The Commission shall establish criteria 

for making recommendations under subsection (a). 

(2) ISSUANCE OF PROPOSED CRITERIA.—The Commission 

shall issue proposed criteria under this subsection no later 

than 60 days after the date of the enactment of this Act, and 

thereafter provide a period of 30 days for submission by the 

public of comments on the proposed criteria. 
Sec. 303 UNFUNDED MANDATES REFORM ACT OF 1995 256 

(3) FINAL CRITERIA.—No later than 45 days after the date 

of issuance of proposed criteria, the Commission shall—— 

(A) consider comments on the proposed criteria received under paragraph (2); 

(B) adopt and incorporate in final criteria any recommendations submitted in those comments that the Commission determines will aid the Commission in carrying 

out its duties under this section; and 

(C) issue final criteria under this subsection. 

(c) PRELIMINARY REPORT.—— 

(1) IN GENERAL.—No later than 9 months after the date of 

the enactment of this Act, the Commission shall—— 

(2) PUBLIC HEARINGS.—The Commission shall hold public 

hearings on the preliminary recommendations contained in the 

preliminary report of the Commission under this subsection. 

(d) FINAL REPORT.—No later than 3 months after the date of 

the publication of the preliminary report under subsection (c), the 

Commission shall submit to the Congress, including the Committee 

on Government Reform and Oversight of the House of Representatives, the Committee on Governmental Affairs of the Senate, the 

Committee on the Budget of the Senate, and the Committee on the 

Budget of the House of Representatives, and to the President a 

final report on the findings, conclusions, and recommendations of 

the Commission under this section. 

(e) PRIORITY TO MANDATES THAT ARE SUBJECT OF JUDICIAL

PROCEEDINGS.—In carrying out this section, the Advisory Commission shall give the highest priority to immediately investigating, reviewing, and making recommendations regarding Federal mandates that are the subject of judicial proceedings between the 

United States and a State, local, or tribal government. 

(f) DEFINITION.—For purposes of this section the term ‘‘State 

mandate’’ means any provision in a State statute or regulation that 

imposes an enforceable duty on local governments, the private sector, or individuals, including a condition of State assistance or a 

duty arising from participation in a voluntary State program. 

SEC. 303. ø2 U.S.C. 1553¿ SPECIAL AUTHORITIES OF ADVISORY COMMISSION. 

(a) EXPERTS AND CONSULTANTS.—For purposes of carrying out 

this title, the Advisory Commission may procure temporary and 

intermittent services of experts or consultants under section 

3109(b) of title 5, United States Code. 

(b) DETAIL OF STAFF OF FEDERAL AGENCIES.—Upon request of 

the Executive Director of the Advisory Commission, the head of 

any Federal department or agency may detail, on a reimbursable 

basis, any of the personnel of that department or agency to the Advisory Commission to assist it in carrying out this title. 

(c) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request of 

the Advisory Commission, the Administrator of General Services 

shall provide to the Advisory Commission, on a reimbursable basis, 

the administrative support services necessary for the Advisory 

Commission to carry out its duties under this title. 

(d) CONTRACT AUTHORITY.—The Advisory Commission may, 

subject to appropriations, contract with and compensate govern-
257 Sec. 401 UNFUNDED MANDATES REFORM ACT OF 1995 

ment and private persons (including agencies) for property and 

services used to carry out its duties under this title. 

SEC. 304. ø2 U.S.C. 1554¿ ANNUAL REPORT TO CONGRESS REGARDING 

FEDERAL COURT RULINGS. 

No later than 4 months after the date of enactment of this Act, 

and no later than March 15 of each year thereafter, the Advisory 

Commission on Intergovernmental Relations shall submit to the 

Congress, including the Committee on Government Reform and 

Oversight of the House of Representatives and the Committee on 

Governmental Affairs of the Senate, and to the President a report 

describing any Federal court case to which a State, local, or tribal 

government was a party in the preceding calendar year that required such State, local, or tribal government to undertake responsibilities or activities, beyond those such government would otherwise have undertaken, to comply with Federal statutes and regulations. 

SEC. 305. ø2 U.S.C. 1555¿ DEFINITION. 

Notwithstanding section 3 of this Act, for purposes of this title 

the term ‘‘Federal mandate’’ means any provision in statute or regulation or any Federal court ruling that imposes an enforceable 

duty upon State, local, or tribal governments including a condition 

of Federal assistance or a duty arising from participation in a voluntary Federal program. 

SEC. 306. ø2 U.S.C. 1556¿ AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Advisory Commission to carry out section 301 and section 302, $500,000 for each 

of fiscal years 1995 and 1996. 

Title IV—Judicial Review 

SEC. 401. ø2 U.S.C. 1571¿ JUDICIAL REVIEW. 

(a) AGENCY STATEMENTS ON SIGNIFICANT REGULATORY AC- TIONS.— 

(1) IN GENERAL.—Compliance or noncompliance by any 

agency with the provisions of sections 202 and 203(a) (1) and 

(2) shall be subject to judicial review only in accordance with 

this section. 

(2) LIMITED REVIEW OF AGENCY COMPLIANCE OR NONCOMPLIANCE.— (A) Agency compliance or noncompliance with the provisions of sections 202 and 203(a) (1) and (2) shall be subject to judicial review only under section 706(1) of title 5, 

United States Code, and only as provided under subparagraph (B). 

(B) If an agency fails to prepare the written statement 

(including the preparation of the estimates, analyses, 

statements, or descriptions) under section 202 or the written plan under section 203(a) (1) and (2), a court may compel the agency to prepare such written statement. 

(3) REVIEW OF AGENCY RULES.—In any judicial review 

under any other Federal law of an agency rule for which a 

written statement or plan is required under sections 202 and 
Sec. 401 UNFUNDED MANDATES REFORM ACT OF 1995 258 

203(a) (1) and (2), the inadequacy or failure to prepare such 

statement (including the inadequacy or failure to prepare any 

estimate, analysis, statement or description) or written plan 

shall not be used as a basis for staying, enjoining, invalidating 

or otherwise affecting such agency rule. 

(4) CERTAIN INFORMATION AS PART OF RECORD.—Any information generated under sections 202 and 203(a) (1) and (2) 

that is part of the rulemaking record for judicial review under 

the provisions of any other Federal law may be considered as 

part of the record for judicial review conducted under such 

other provisions of Federal law. 

(5) APPLICATION OF OTHER FEDERAL LAW.—For any petition 

under paragraph (2) the provisions of such other Federal law 

shall control all other matters, such as exhaustion of administrative remedies, the time for and manner of seeking review 

and venue, except that if such other Federal law does not provide a limitation on the time for filing a petition for judicial review that is less than 180 days, such limitation shall be 180 

days after a final rule is promulgated by the appropriate agency. 

(6) EFFECTIVE DATE.—This subsection shall take effect on 

October 1, 1995, and shall apply only to any agency rule for 

which a general notice of proposed rulemaking is promulgated 

on or after such date. 

(b) JUDICIAL REVIEW AND RULE OF CONSTRUCTION.—Except as 

provided in subsection (a)— 

(1) any estimate, analysis, statement, description or report 

prepared under this Act, and any compliance or noncompliance 

with the provisions of this Act, and any determination concerning the applicability of the provisions of this Act shall not 

be subject to judicial review; and 

(2) no provision of this Act shall be construed to create any 

right or benefit, substantive or procedural, enforceable by any 

person in any administrative or judicial action. 
259 

RULES OF THE HOUSE OF REPRESENTATIVES 

261 

RULES OF THE HOUSE OF REPRESENTATIVES 

RULE X 

ORGANIZATION OF COMMITTEES

Committees and their legislative jurisdictions 

Clause 1. 

* * * * * * * 

(d) Committee on the Budget. 

(1) Concurrent resolutions on the budget (as defined in section 3(4) of the Congressional Budget Act of 1974), other matters required to be referred to the committee under titles III 

and IV of that Act, and other measures setting forth appropriate levels of budget totals for the United States Government. 

(2) Budget Process generally. 

(3) Establishment, extension, and enforcement of special 

controls over the Federal budget, including the budgetary 

treatment of off-budget Federal agencies and measures providing exemption from reduction under any order issued under 

part C of the Balanced Budget and Emergency Deficit Control 

Act of 1985. 

* * * * * * * 

Additional functions of committees 

Budget Act responsibilities. 

* * * * * * * 

Clause 4. 

* * * * * * * 

(f)(1) Each standing committee shall submit to the Committee 

on the Budget not later than six weeks after the submission of the 

budget by the President, or at such time as the Committee on the 

Budget may request— 

(A) its views and estimates with respect to all matters 

to be set forth in the concurrent resolution on the budget 

for the ensuing fiscal year that are within its jurisdiction 

or functions; and 

(B) an estimate of the total amounts of new budget authority, and budget outlays resulting therefrom, to be provided or authorized in all bills and resolutions within its 

jurisdiction that it intends to be effective during that fiscal 

year. 
Rule XII RULES OF THE HOUSE OF REPRESENTATIVES 262 

90 Clause 7, requiring a constitutional authority statement for each bill that is introduced, appended to the legislative text, was inserted by H. Res. 5, the organizing resolution for the 112th 

Congress. 

(2) The views and estimates submitted by the Committee 

on Ways and Means under subparagraph (1) shall include a 

specific recommendation, made after holding public hearings, 

as to the appropriate level of the public debt that should be set 

forth in the concurrent resolution on the budget. 

* * * * * * * 

Permanent Select Committee on Intelligence 

* * * * * * * 

Clause 11. 

* * * * * * * 

(3) Within six weeks after the President submits a budget 

under section 1105(a) of title 31, United States Code, or at 

such time as the Committee on the Budget may request, the 

select committee shall submit to the Committee on the Budget 

the views and estimates described in section 301(d) of the Congressional Budget Act of 1974 regarding matters within the jurisdiction of the select committee. 

RULE XII 

* * * * * * * 

Constitutional Authority Statement 90

7. (a) * * * 

* * * * * * * 

(c)(1) A bill or joint resolution may not be introduced unless 

the sponsor submits for printing in the Congressional Record a 

statement citing as specifically as practicable the power or powers 

granted to Congress in the Constitution to enact the bill or joint 

resolution. The statement shall appear in a portion of the Record 

designated for that purpose and be made publicly available in electronic form by the Clerk. 

(2) Before consideration of a Senate bill or joint resolution, 

the chair of a committee of jurisdiction may submit the statement required under subparagraph (1) as though the chair 

were the sponsor of the Senate bill or joint resolution. 

RULE XIII 

CALENDARS AND COMMITTEE REPORTS. 

Calendars 

1. (a) All business reported by committees shall be referred to 

one of the following three calendars: 

(1) A Calendar of the Committee of the Whole House on 

the state of the Union, to which shall be referred public bills 

and public resolutions raising revenue, involving a tax or 

charge on the people, directly or indirectly making appropria-
263 Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 

tions of money or property or requiring such appropriations to 

be made, authorizing payments out of appropriations already 

made, releasing any liability to the United States for money or 

property, or referring a claim to the Court of Claims. 

(2) A House Calendar, to which shall be referred all public 

bills and public resolutions not requiring referral to the Calendar of the Committee of the Whole House on the state of the 

Union. 

(3) A Private Calendar as provided in clause 5 of rule XV, 

to which shall be referred all private bills and private resolutions. 

(b) There is established a Calendar of Motions to Discharge 

Committees as provided in clause 2 of rule XV. 

Filing and printing of reports 

2. (a)(1) Except as provided in subparagraph (2), all reports of 

committees (other than those filed from the floor) shall be delivered 

to the Clerk for printing and reference to the proper calendar 

under the direction of the Speaker in accordance with clause 1. The 

title or subject of each report shall be entered on the Journal and 

printed in the Congressional Record. 

(2) A bill or resolution reported adversely (other than those 

filed as privileged) shall be laid on the table unless a committee to which the bill or resolution was referred requests at 

the time of the report its referral to an appropriate calendar 

under clause 1 or unless, within three days thereafter, a Member, Delegate, or Resident Commissioner makes such a request. 

(b)(1) It shall be the duty of the chair of each committee to report or cause to be reported promptly to the House a measure or 

matter approved by the committee and to take or cause to be taken 

steps necessary to bring the measure or matter to a vote. 

(2) In any event, the report of a committee on a measure 

that has been approved by the committee shall be filed within 

seven calendar days (exclusive of days on which the House is 

not in session) after the day on which a written request for the 

filing of the report, signed by a majority of the members of the 

committee, has been filed with the clerk of the committee. The 

clerk of the committee shall immediately notify the chair of the 

filing of such a request. This subparagraph does not apply to 

a report of the Committee on Rules with respect to a rule, joint 

rule, or order of business of the House, or to the reporting of 

a resolution of inquiry addressed to the head of an executive 

department. 

(c) All supplemental, minority, or additional views filed under 

clause 2(l) of rule XI by one or more members of a committee shall 

be included in, and shall be a part of, the report filed by the committee with respect to a measure or matter. When time guaranteed 

by clause 2(l) of rule XI has expired (or, if sooner, when all separate views have been received), the committee may arrange to file 

its report with the Clerk not later than one hour after the expiration of such time. This clause and provisions of clause 2(l) of rule 

XI do not preclude the immediate filing or printing of a committee 

report in the absence of a timely request for the opportunity to file 
Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 264 

supplemental, minority, or additional views as provided in clause 

2(l) of rule XI. 

Content of reports 

3. (a)(1) Except as provided in subparagraph (2), the report of 

a committee on a measure or matter shall be printed in a single 

volume that— 

(A) shall include all supplemental, minority, or additional views that have been submitted by the time of the 

filing of the report; and 

(B) shall bear on its cover a recital that any such supplemental, minority, or additional views (and any material 

submitted under paragraph (c)(3)) are included as part of 

the report. 

(2) A committee may file a supplemental report for the correction of a technical error in its previous report on a measure 

or matter. A supplemental report only correcting errors in the 

depiction of record votes under paragraph (b) may be filed 

under this subparagraph and shall not be subject to the requirement in clause 4 or clause 6 concerning the availability of 

reports. 

(b) With respect to each record vote on a motion to report a 

measure or matter of a public nature, and on any amendment offered to the measure or matter, the total number of votes cast for 

and against, and the names of members voting for and against, 

shall be included in the committee report. The preceding sentence 

does not apply to votes taken in executive session by the Committee on Ethics. 

(c) The report of a committee on a measure that has been approved by the committee shall include, separately set out and clearly identified, the following: 

(1) Oversight findings and recommendations under clause 

2(b)(1) of rule X. 

(2) The statement required by section 308(a) of the Congressional Budget Act of 1974, except that an estimate of new 

budget authority shall include, when practicable, a comparison 

of the total estimated funding level for the relevant programs 

to the appropriate levels under current law. 

(3) An estimate and comparison prepared by the Director 

of the Congressional Budget Office under section 402 of the 

Congressional Budget Act of 1974 if timely submitted to the 

committee before the filing of the report. 

(4) A statement of general performance goals and objectives, including outcome-related goals and objectives, for which 

the measure authorizes funding. 

(d) Each report of a committee on a public bill or public joint 

resolution shall contain the following: 

(1)(A) An estimate by the committee of the costs that 

would be incurred in carrying out the bill or joint resolution in 

the fiscal year in which it is reported and in each of the five 

fiscal years following that fiscal year (or for the authorized duration of any program authorized by the bill or joint resolution 

if less than five years); 
265 Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 

(B) a comparison of the estimate of costs described in 

subdivision (A) made by the committee with any estimate 

of such costs made by a Government agency and submitted 

to such committee; and 

(C) when practicable, a comparison of the total estimated funding level for the relevant programs with the appropriate levels under current law. 

(2)(A) In subparagraph (1) the term ‘‘Government agency’’ 

includes any department, agency, establishment, wholly owned 

Government Corporation, or instrumentality of the Federal 

Government or the government of the District of Columbia. 

(B) Subparagraph (1) does not apply to the Committee 

on Appropriations, the Committee on House Administration, the Committee on Rules, or the Committee on Ethics, 

and does not apply when a cost estimate and comparison 

prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 

1974 has been included in the report under paragraph 

(c)(3). 

(e)(1) Whenever a committee reports a bill or joint resolution 

proposing to repeal or amend a statute or part thereof, it shall include in its report or in an accompanying document— 

(A) the text of a statute or part thereof that is proposed to be repealed; and 

(B) a comparative print of any part of the bill or joint 

resolution proposing to amend the statute and of the statute or part thereof proposed to be amended, showing by 

appropriate typographical devices the omissions and insertions proposed. 

(2) If a committee reports a bill or joint resolution proposing to repeal or amend a statute or part thereof with a recommendation that the bill or joint resolution be amended, the 

comparative print required by subparagraph (1) shall reflect 

the changes in existing law proposed to be made by the bill or 

joint resolution as proposed to be amended. 

(f)(1) A report of the Committee on Appropriations on a general 

appropriation bill shall include— 

(A) a concise statement describing the effect of any 

provision of the accompanying bill that directly or indirectly changes the application of existing law; and 

(B) a list of all appropriations contained in the bill for 

expenditures not currently authorized by law for the period concerned (excepting classified intelligence or national 

security programs, projects, or activities), along with a 

statement of the last year for which such expenditures 

were authorized, the level of expenditures authorized for 

that year, the actual level of expenditures for that year, 

and the level of appropriations in the bill for such expenditures. 

(2) Whenever the Committee on Appropriations reports a 

bill or joint resolution including matter specified in clause 

1(b)(2) or (3) of rule X, it shall include— 
Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 266 

(A) in the bill or joint resolution, separate headings for 

‘‘Rescissions’’ and ‘‘Transfers of Unexpended Balances’’; 

and 

(B) in the report of the committee, a separate section 

listing such rescissions and transfers. 

(g) Whenever the Committee on Rules reports a resolution proposing to repeal or amend a standing rule of the House, it shall include in its report or in an accompanying document— 

(1) the text of any rule or part thereof that is proposed to 

be repealed; and 

(2) a comparative print of any part of the resolution proposing to amend the rule and of the rule or part thereof proposed to be amended, showing by appropriate typographical devices the omissions and insertions proposed. (h)(1) It shall not 

be in order to consider a bill or joint resolution reported by the 

Committee on Ways and Means that proposes to amend the Internal Revenue Code of 1986 unless— 

(A) the report includes a tax complexity analysis prepared by the Joint Committee on Internal Revenue Taxation in accordance with section 4022(b) of the Internal 

Revenue Service Restructuring and Reform Act of 1998; or 

(B) the chair of the Committee on Ways and Means 

causes such a tax complexity analysis to be printed in the 

Congressional Record before consideration of the bill or 

joint resolution. 

(2)(A) It shall not be in order to consider a bill or joint resolution reported by the Committee on Ways and Means that proposes 

to amend the Internal Revenue Code of 1986 unless— 

(i) the report includes a macroeconomic impact 

analysis; 

(ii) the report includes a statement from the Joint 

Committee on Internal Revenue Taxation explaining 

why a macroeconomic impact analysis is not calculable; or 

(iii) the chair of the Committee on Ways and 

Means causes a macroeconomic impact analysis to be 

printed in the Congressional Record before consideration of the bill or joint resolution. 

(B) In subdivision (A), ther term ‘‘macroeconomic impact analysis’’ means— 

(i) an estimate prepared by the Joint Committee 

on Internal Revenue Taxation of the changes in economic output, employment, capital stock, and tax revenues expected to result from enactment of the proposal; and 

(ii) a statement from the Joint Committee on Internal Revenue Taxation identifying the critical assumptions and the source of data underlying that estimate. 
267 Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 

Availability of reports 

4. (a)(1) Except as specified in subparagraph (2), it shall not be 

in order to consider in the House a measure or matter reported by 

a committee until the third calendar day (excluding Saturdays, 

Sundays, or legal holidays except when the House is in session on 

such a day) on which each report of a committee on that measure 

or matter has been available to Members, Delegates, and the Resident Commissioner. 

(2) Subparagraph (1) does not apply to— 

(A) a resolution providing a rule, joint rule, or order 

of business reported by the Committee on Rules considered 

under clause 6; 

(B) a resolution providing amounts from the applicable 

accounts described in clause 1(k)(1) of rule X reported by 

the Committee on House Administration considered under 

clause 6 of rule X; 

(C) a resolution presenting a question of the privileges 

of the House reported by any committee; 

(D) a measure for the declaration of war, or the declaration of a national emergency, by Congress; and 

(E) a measure providing for the disapproval of a decision, determination, or action by a Government agency 

that would become, or continue to be, effective unless disapproved or otherwise invalidated by one or both Houses 

of Congress. In this subdivision the term ‘‘Government 

agency’’ includes any department, agency, establishment, 

wholly owned Government corporation, or instrumentality 

of the Federal Government or of the government of the 

District of Columbia. 

(b) A committee that reports a measure or matter shall make 

every reasonable effort to have its hearings thereon (if any) printed 

and available for distribution to Members, Delegates, and the Resident Commissioner before the consideration of the measure or matter in the House. 

(c) A general appropriation bill reported by the Committee on 

Appropriations may not be considered in the House until the third 

calendar day (excluding Saturdays, Sundays, and legal holidays except when the House is in session on such a day) on which printed 

hearings of the Committee on Appropriations thereon have been 

available to Members, Delegates, and the Resident Commissioner. 

Privileged reports, generally 

5. (a) The following committees shall have leave to report at 

any time on the following matters, respectively: 

(1) The Committee on Appropriations, on general appropriation bills and on joint resolutions continuing appropriations for a fiscal year after September 15 in the preceding fiscal year. 

(2) The Committee on the Budget, on the matters required 

to be reported by such committee under titles III and IV of the 

Congressional Budget Act of 1974. 

(3) The Committee on House Administration, on enrolled 

bills, on contested elections, on matters referred to it concerning printing for the use of the House or the two Houses, 
Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 268 

on expenditure of the applicable accounts of the House described in clause 1(k)(1) of rule X, and on matters relating to 

preservation and availability of noncurrent records of the 

House under rule VII. 

(4) The Committee on Rules, on rules, joint rules, and the 

order of business. 

(5) The Committee on Ethics, on resolutions recommending 

action by the House with respect to a Member, Delegate, Resident Commissioner, officer, or employee of the House as a result of an investigation by the committee relating to the official 

conduct of such Member, Delegate, Resident Commissioner, officer, or employee. 

(b) A report filed from the floor as privileged under paragraph 

(a) may be called up as a privileged question by direction of the reporting committee, subject to any requirement concerning its availability to Members, Delegates, and the Resident Commissioner 

under clause 4 or concerning the timing of its consideration under 

clause 6. 

Privileged reports by the Committee on Rules 

6. (a) A report by the Committee on Rules on a rule, joint rule, 

or the order of business may not be called up for consideration on 

the same day it is presented to the House except— 

(1) when so determined by a vote of two-thirds of the 

Members voting, a quorum being present; 

(2) in the case of a resolution proposing only to waive a requirement of clause 4 or of clause 8 of rule XXII concerning the 

availability of reports; or 

(3) during the last three days of a session of Congress. 

(b) Pending the consideration of a report by the Committee on 

Rules on a rule, joint rule, or the order of business, the Speaker 

may entertain one motion that the House adjourn but may not entertain any other dilatory motion until the report shall have been 

disposed of. 

(c) The Committee on Rules may not report a rule or order that 

would prevent the motion to recommit a bill or joint resolution 

from being made as provided in clause 2(b) of rule XIX, including 

a motion to recommit with instructions to report back an amendment otherwise in order, if offered by the Minority Leader or a designee, except with respect to a Senate bill or joint resolution for 

which the text of a House-passed measure has been substituted. 

(d) The Committee on Rules shall present to the House reports 

concerning rules, joint rules, and the order of business, within 

three legislative days of the time when they are ordered. If such 

a report is not considered immediately, it shall be referred to the 

calendar. If such a report on the calendar is not called up by the 

member of the committee who filed the report within seven legislative days, any member of the committee may call it up as a privileged question on the day after the calendar day on which the 

member announces to the House intention to do so. The Speaker 

shall recognize a member of the committee who rises for that purpose. 

(e) An adverse report by the Committee on Rules on a resolution proposing a special order of business for the consideration of 
269 Rule XVIII RULES OF THE HOUSE OF REPRESENTATIVES 

91 Clause 10 of Rule XVIII requires that, with certain exceptions, that amendments to concurrent resolutions on the budget be mathematically consistent. Under this rule, amendments making changes in budget authority and outlay aggregate totals must be accompanied by comparable changes in functional categories. A point of order will lie against an amendment to the 

resolution increasing the aggregates and a functional category for budget authority and outlays 

but not changing the amount of the deficit. However, an amendment that only transfers an 

amount of budget authority from one functional category to another—that is, reduces one category by a certain amount and adds the same amount to another category—need make no 

changes in the aggregates to achieve mathematical consistency. 96–1, May 8, 1979, p 10271. 

a public bill or public joint resolution may be called up as a privileged question by a Member, Delegate, or Resident Commissioner 

on a day when it is in order to consider a motion to discharge committees under clause 2 of rule XV. 

(f) If the House has adopted a resolution making in order a motion to consider a bill or resolution, and such a motion has not been 

offered within seven calendar days thereafter, such a motion shall 

be privileged if offered by direction of all reporting committees having initial jurisdiction of the bill or resolution. 

(g) Whenever the Committee on Rules reports a resolution providing for the consideration of a measure, it shall (to the maximum 

extent possible) specify in the resolution the object of any waiver 

of a point of order against the measure or against its consideration. 

Resolutions of inquiry 

7. A report on a resolution of inquiry addressed to the head of 

an executive department may be filed from the floor as privileged. 

If such a resolution is not reported to the House within 14 legislative days after its introduction, a motion to discharge a committee 

from its consideration shall be privileged. 

RULE XVIII 

THE COMMITTEE OF THE WHOLE HOUSE

ON THE STATE OF THE UNION. 

* * * * * * * 

Concurrent Resolution on the Budget 91

10. (a) At the conclusion of general debate in the Committee 

of the Whole House on the state of the Union on a concurrent resolution on the budget under section 305(a) of the Congressional 

Budget Act of 1974, the concurrent resolution shall be considered 

as read for amendment. 

(b) It shall not be in order in the House or in the Committee 

of the Whole House on the state of the Union to consider an 

amendment to a concurrent resolution on the budget, or an amendment thereto, unless the concurrent resolution, as amended by such 

amendment or amendments— 

(1) would be mathematically consistent except as limited 

by paragraph (c); and 

(2) would contain all the matter set forth in paragraphs (1) 

through (5) of section 301(a) of the Congressional Budget Act 

of 1974. 

(c)(1) Except as specified in subparagraph (2), it shall not be 

in order in the House or in the Committee of the Whole House on 

the state of the Union to consider an amendment to a concurrent 
Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 270 

resolution on the budget, or an amendment thereto, that proposes 

to change the amount of the appropriate level of the public debt set 

forth in the concurrent resolution, as reported. 

(2) Amendments to achieve mathematical consistency 

under section 305(a)(5) of the Congressional Budget Act of 

1974, if offered by direction of the Committee on the Budget, 

may propose to adjust the amount of the appropriate level of 

the public debt set forth in the concurrent resolution, as reported, to reflect changes made in other figures contained in 

the concurrent resolution. 

* * * * * * * 

RULE XXI 

RESTRICTIONS ON CERTAIN BILLS. 

Reservation of certain points of order 

1. At the time a general appropriation bill is reported, all 

points of order against provisions therein shall be considered as reserved. 

General appropriation bills and amendments 

2. (a)(1) An appropriation may not be reported in a general appropriation bill, and may not be in order as an amendment thereto, 

for an expenditure not previously authorized by law, except to continue appropriations for public works and objects that are already 

in progress. 

(2) A reappropriation of unexpended balances of appropriations may not be reported in a general appropriation bill, and 

may not be in order as an amendment thereto, except to continue appropriations for public works and objects that are already in progress. This subparagraph does not apply to transfers of unexpended balances within the department or agency 

for which they were originally appropriated that are reported 

by the Committee on Appropriations. 

(b) A provision changing existing law may not be reported in 

a general appropriation bill, including a provision making the 

availability of funds contingent on the receipt or possession of information not required by existing law for the period of the appropriation, except germane provisions that retrench expenditures by 

the reduction of amounts of money covered by the bill (which may 

include those recommended to the Committee on Appropriations by 

direction of a legislative committee having jurisdiction over the 

subject matter) and except rescissions of appropriations contained 

in appropriation Acts. 

(c) An amendment to a general appropriation bill shall not be 

in order if changing existing law, including an amendment making 

the availability of funds contingent on the receipt or possession of 

information not required by existing law for the period of the appropriation. Except as provided in paragraph (d), an amendment 

proposing a limitation not specifically contained or authorized in 

existing law for the period of the limitation shall not be in order 

during consideration of a general appropriation bill. 
271 Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 

92 Amended previous clause: ‘‘It shall not be in order to consider a bill, joint resolution, amendment, or conference report that would cause obligation limitations to be below the level for any 

fiscal year set forth in section 8003 of the Safe, Accountable, Flexible, Efficient Transportation 

Equity Act: A Legacy for Users, as adjusted, for the highway category or the mass transit category, as applicable. For purposes of this clause, any obligation limitation relating to surface 

transportation projects under section 1602 of the Transportation Equity Act for the 21st Century 

and section 1702 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users shall be assumed to be administered on the basis of sound program management 

practices that are consistent with past practices of the administering agency permitting §1064. 

Transportation obligation limitations.’’ 

(d) After a general appropriation bill has been read for amendment, a motion that the Committee of the Whole House on the 

state of the Union rise and report the bill to the House with such 

amendments as may have been adopted shall, if offered by the Majority Leader or a designee, have precedence over motions to amend 

the bill. If such a motion to rise and report is rejected or not offered, amendments proposing limitations not specifically contained 

or authorized in existing law for the period of the limitation or proposing germane amendments that retrench expenditures by reductions of amounts of money covered by the bill may be considered. 

(e) A provision other than an appropriation designated an 

emergency under section 251(b)(2) or section 252(e) of the Balanced 

Budget and Emergency Deficit Control Act, a rescission of budget 

authority, or a reduction in direct spending or an amount for a designated emergency may not be reported in an appropriation bill or 

joint resolution containing an emergency designation under section 

251(b)(2) or section 252(e) of such Act and may not be in order as 

an amendment thereto. 

(f) During the reading of an appropriation bill for amendment 

in the Committee of the Whole House on the state of the Union, 

it shall be in order to consider en bloc amendments proposing only 

to transfer appropriations among objects in the bill without increasing the levels of budget authority or outlays in the bill. When 

considered en bloc under this paragraph, such amendments may 

amend portions of the bill not yet read for amendment (following 

disposition of any points of order against such portions) and are not 

subject to a demand for division of the question in the House or in 

the Committee of the Whole. 

Transportation obligation limitations 92

3. It shall not be in order to consider a general appropriation 

bill or joint resolution, or conference report thereon, that— 

(a) provides spending authority derived from receipts deposited in the Highway Trust Fund (excluding any transfers 

from the General Fund of the Treasury); or 

(b) reduces or otherwise limits the accruing balances of the 

Highway Trust Fund, for any purpose other than for those activities authorized for the highway or mass transit categories. 

Appropriations on legislative bills 

4. A bill or joint resolution carrying an appropriation may not 

be reported by a committee not having jurisdiction to report appropriations, and an amendment proposing an appropriation shall not 

be in order during the consideration of a bill or joint resolution reported by a committee not having that jurisdiction. A point of order 

against an appropriation in such a bill, joint resolution, or amend-
Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 272 

93So in law. Should be ‘‘subparagraph (1)’’. 

ment thereto may be raised at any time during pendency of that 

measure for amendment. 

Tax and tariff measures and amendments 

5. (a)(1) A bill or joint resolution carrying a tax or tariff measure may not be reported by a committee not having jurisdiction to 

report tax or tariff measures, and an amendment in the House or 

proposed by the Senate carrying a tax or tariff measure shall not 

be in order during the consideration of a bill or joint resolution reported by a committee not having that jurisdiction. A point of order 

against a tax or tariff measure in such a bill, joint resolution, or 

amendment thereto may be raised at any time during pendency of 

that measure for amendment. 

(2) For purposes of paragraph (1),93 a tax or tariff measure 

includes an amendment proposing a limitation on funds in a 

general appropriation bill for the administration of a tax or 

tariff. 

(b) A bill or joint resolution, amendment, or conference report 

carrying a Federal income tax rate increase may not be considered 

as passed or agreed to unless so determined by a vote of not less 

than three-fifths of the Members voting, a quorum being present. 

In this paragraph the term ‘‘Federal income tax rate increase’’ 

means any amendment to subsection (a), (b), (c), (d), or (e) of section 1, or to section 11(b) or 55(b), of the Internal Revenue Code 

of 1986, that imposes a new percentage as a rate of tax and thereby increases the amount of tax imposed by any such section. 

(c) It shall not be in order to consider a bill, joint resolution, 

amendment, or conference report carrying a retroactive Federal income tax rate increase. In this paragraph— 

(1) the term ‘‘Federal income tax rate increase’’ means any 

amendment to subsection (a), (b), (c), (d), or (e) of section 1, or 

to section 11(b) or 55(b), of the Internal Revenue Code of 1986, 

that imposes a new percentage as a rate of tax and thereby increases the amount of tax imposed by any such section; and 

(2) a Federal income tax rate increase is retroactive if it 

applies to a period beginning before the enactment of the provision. 

Designation of public works 

6. It shall not be in order to consider a bill, joint resolution, 

amendment, or conference report that provides for the designation 

or redesignation of a public work in honor of an individual then 

serving as a Member, Delegate, Resident Commissioner, or Senator. 

Reconciliation directives 

7. It shall not be in order to consider a concurrent resolution 

on the budget, or an amendment thereto, or a conference report 

thereon that contains reconciliation directives under section 310 of 

the Congressional Budget Act of 1974 that specify changes in law 

such that the reconciliation legislation reported pursuant to such 

directives would cause an increase in net direct spending as such 
273 Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 

term is defined in clause 10 for the period covered by such concurrent resolution. 

Application of Budget Act points of order 

8. With respect to measures considered pursuant to a special 

order of business, points of order under title III of the Congressional Budget Act of 1974 shall operate without regard to whether 

the measure concerned has been reported from committee. Such 

points of order shall operate with respect to (as the case may be)— 

(a) the form of a measure recommended by the reporting 

committee where the statute uses the term ‘‘as reported’’ (in 

the case of a measure that has been so reported); 

(b) the form of the measure made in order as an original 

bill or joint resolution for the purpose of amendment; or 

(c) the form of the measure on which the previous question 

is ordered directly to passage. 

Earmarks 

9. (a) It shall not be in order to consider— 

(1) a bill or joint resolution reported by a committee unless 

the report includes a list of congressional earmarks, limited tax 

benefits, and limited tariff benefits in the bill or in the report 

(and the name of any Member, Delegate, or Resident Commissioner who submitted a request to the committee for each respective item included in such list) or a statement that the 

proposition contains no congressional earmarks, limited tax 

benefits, or limited tariff benefits; 

(2) a bill or joint resolution not reported by a committee 

unless the chair of each committee of initial referral has 

caused a list of congressional earmarks, limited tax benefits, 

and limited tariff benefits in the bill (and the name of any 

Member, Delegate, or Resident Commissioner who submitted a 

request to the committee for each respective item included in 

such list) or a statement that the proposition contains no congressional earmarks, limited tax benefits, or limited tariff benefits to be printed in the Congressional Record prior to its consideration; 

(3) an amendment to a bill or joint resolution to be offered 

at the outset of its consideration for amendment by a Member 

of a committee of initial referral as designated in a report of 

the Committee on Rules to accompany a resolution prescribing 

a special order of business unless the proponent has caused a 

list of congressional earmarks, limited tax benefits, and limited 

tariff benefits in the amendment (and the name of any Member, Delegate, or Resident Commissioner who submitted a request to the proponent for each respective item included in 

such list) or a statement that the proposition contains no congressional earmarks, limited tax benefits, or limited tariff benefits to be printed in the Congressional Record prior to its consideration; or 

(4) a conference report to accompany a bill or joint resolution unless the joint explanatory statement prepared by the 

managers on the part of the House and the managers on the 

part of the Senate includes a list of congressional earmarks, 
Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 274 

limited tax benefits, and limited tariff benefits in the conference report or joint statement (and the name of any Member, Delegate, Resident Commissioner, or Senator who submitted a request to the House or Senate committees of jurisdiction for each respective item included in such list) or a statement that the proposition contains no congressional earmarks, 

limited tax benefits, or limited tariff benefits. 

(b) It shall not be in order to consider a conference report to 

accompany a regular general appropriation bill unless the joint explanatory statement prepared by the managers on the part of the 

House and the managers on the part of the Senate includes— 

(1) a list of congressional earmarks, limited tax benefits, 

and limited tariff benefits in the conference report or joint 

statement (and the name of any Member, Delegate, Resident 

Commissioner, or Senator who submitted a request to the 

House or Senate committees of jurisdiction for each respective 

item included in such list) that were neither committed to the 

conference committee by either House nor in a report of a committee of either House on such bill or on a companion measure; 

or 

(2) a statement that the proposition contains no congressional earmarks, limited tax benefits, or limited tariff benefits. 

(c) It shall not be in order to consider a rule or order that 

waives the application of paragraph (a) or (b). As disposition of a 

point of order under this paragraph or paragraph (b), the Chair 

shall put the question of consideration with respect to the rule or 

order or conference report, as applicable. The question of consideration shall be debatable for 10 minutes by the Member initiating 

the point of order and for 10 minutes by an opponent, but shall 

otherwise be decided without intervening motion except one that 

the House adjourn. 

(d) In order to be cognizable by the Chair, a point of order 

raised under paragraph (a) may be based only on the failure of a 

report, submission to the Congressional Record, or joint explanatory statement to include a list required by paragraph (a) or a 

statement that the proposition contains no congressional earmarks, 

limited tax benefits, or limited tariff benefits. 

(e) For the purpose of this clause, the term ‘‘congressional earmark’’ means a provision or report language included primarily at 

the request of a Member, Delegate, Resident Commissioner, or Senator providing, authorizing or recommending a specific amount of 

discretionary budget authority, credit authority, or other spending 

authority for a contract, loan, loan guarantee, grant, loan authority, or other expenditure with or to an entity, or targeted to a specific State, locality or Congressional district, other than through a 

statutory or administrative formula driven or competitive award 

process. 

(f) For the purpose of this clause, the term ‘‘limited tax benefit’’ 

means— 

(1) any revenue-losing provision that— 

(A) provides a Federal tax deduction, credit, exclusion, 

or preference to 10 or fewer beneficiaries under the Internal Revenue Code of 1986, and 
275 Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 

94The following language was deleted by H. Res. 5, the ‘‘rules package,’’ adopted in the 112th 

Congress: ‘‘(3) If a bill, a joint resolution, an amendment made in order as original text by a 

special order of business, a conference report, or an amendment between the Houses includes 

Continued 

(B) contains eligibility criteria that are not uniform in 

application with respect to potential beneficiaries of such 

provision; or 

(2) any Federal tax provision which provides one beneficiary temporary or permanent transition relief from a change 

to the Internal Revenue Code of 1986. 

(g) For the purpose of this clause, the term ‘‘limited tariff benefit’’ means a provision modifying the Harmonized Tariff Schedule 

of the United States in a manner that benefits 10 or fewer entities. 

Cut-As-You-Go 

10. (a)(1) Except as provided in paragraphs (b) and (c), it shall 

not be in order to consider a bill or joint resolution, or an amendment thereto or a conference report thereon, if the provisions of 

such measure have the net effect of increasing mandatory spending 

for the period of either— 

(A) the current year, the budget year, and the four fiscal years following that budget year; or 

(B) the current year, the budget year, and the nine fiscal years following that budget year. 

(2) For the purpose of this clause, the terms ‘budget year’ 

and ‘current year’ have the meanings specified in section 250 

of the Balanced Budget and Emergency Deficit Control Act of 

1985, and the term ‘mandatory spending’ has the meaning of 

‘direct spending’ specified in such section 250 except that such 

term shall also include provisions in appropriation Acts that 

make outyear modifications to substantive law as described in 

section 3(4)(C) of the Statutory Pay-As-You-Go Act of 2010. 

(b) If a bill or joint resolution, or an amendment thereto, is 

considered pursuant to a special order of the House directing the 

Clerk to add as new matter at the end of such bill or joint resolution the entire text of a separate measure or measures as passed 

by the House, the new matter proposed to be added shall be included in the evaluation under paragraph (a) of the bill, joint resolution, or amendment. 

(c)(1) Except as provided in subparagraph (2), the evaluation 

under paragraph (a) shall exclude a provision expressly designated 

as an emergency for the Statutory Pay-As-You-Go Act of 2010, in 

the case of a point of order under this clause against consideration 

of— 

(A) a bill or joint resolution; 

(B) an amendment made in order as original text by 

a special order of business; 

(C) a conference report; or 

(D) an amendment between the Houses. 

(2) In the case of an amendment (other than one specified 

in subparagraph (1)) to a bill or joint resolution, the evaluation 

under paragraph (a) shall give no cognizance to any designation of emergency.94
Rule XXIX RULES OF THE HOUSE OF REPRESENTATIVES 276 

a provision expressly designated as an emergency for purposes of pay-as-you-go principles, the 

Chair shall put the question of consideration with respect thereto.’’ 95This clause was added by House Resolution 5 from the 112th Congress. 96This clause was added by House Resolution 5 from the 112th Congress. 

Notice Requirements 

11. It shall not be in order to consider a bill or joint resolution 

which has not been reported by a committee until the third calendar day (excluding Saturdays, Sundays, or legal holidays except 

when the House is in session on such a day) on which such measure has been available to Members, Delegates, and the Resident 

Commissioner.95

* * * * * * * 

Rule XXIX 

GENERAL PROVISIONS. 

* * * * * * * 

4. Authoritative guidance from the Committee on the 

Budget concerning the impact of a legislative proposition on 

the levels of new budget authority, outlays, direct spending, 

new entitlement authority and revenues may be provided by 

the chair of the committee.96
277 

RULES OF THE SENATE 

279 

S. CON. RES. 21, 110TH CONGRESS 

* * * * * * * 

Title II—Budget Process 

SEC. 201. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE. 

(a) POINT OF ORDER.— (1) IN GENERAL.—It shall not be in order in the Senate to 

consider any direct spending or revenue legislation that would 

increase the on-budget deficit or cause an on-budget deficit for 

either of the applicable time periods as measured in paragraphs (5) and (6). 

(2) APPLICABLE TIME PERIODS.—For purposes of this subsection, the term ‘‘applicable time period’’ means either— 

(A) the period of the current fiscal year, the budget 

year, and the ensuing 4 fiscal years following the budget 

year; or 

(B) the period of the current fiscal year, the budget 

year, and the ensuing 9 fiscal years following the budget 

year. 

(3) DIRECT SPENDING LEGISLATION.—For purposes of this 

subsection and except as provided in paragraph (4), the term 

‘‘direct spending legislation’’ means any bill, joint resolution, 

amendment, motion, or conference report that affects direct 

spending as that term is defined by, and interpreted for purposes of, the Balanced Budget and Emergency Deficit Control 

Act of 1985. 

(4) EXCLUSION.—For purposes of this subsection, the terms 

‘‘direct spending legislation’’ and ‘‘revenue legislation’’ do not 

include— 

(A) any concurrent resolution on the budget; or 

(B) any provision of legislation that affects the full 

funding of, and continuation of, the deposit insurance 

guarantee commitment in effect on the date of enactment 

of the Budget Enforcement Act of 1990. 

(5) BASELINE.—Estimates prepared pursuant to this subsection shall— 

(A) use the baseline surplus or deficit used for the 

most recently adopted concurrent resolution on the budget; 

and 

(B) be calculated under the requirements of subsections (b) through (d) of section 257 of the Balanced 

Budget and Emergency Deficit Control Act of 1985 (as in 

effect prior to September 30, 2002) for fiscal years beyond 

those covered by that concurrent resolution on the budget. 
Sec. 202 S. CON. RES. 21, 110TH CONGRESS 280 

(6) PRIOR SURPLUS.—If direct spending or revenue legislation increases the on-budget deficit or causes an on-budget deficit when taken individually, it must also increase the on-budget deficit or cause an on-budget deficit when taken together 

with all direct spending and revenue legislation enacted since 

the beginning of the calendar year not accounted for in the 

baseline under paragraph (5)(A), except that direct spending or 

revenue effects resulting in net deficit reduction enacted in any 

bill pursuant to a reconciliation instruction since the beginning 

of that same calendar year shall never be made available on 

the pay-as-you-go ledger and shall be dedicated only for deficit 

reduction. 

(b) SUPERMAJORITY WAIVER AND APPEALS.— 

(1) WAIVER.—This section may be waived or suspended in 

the Senate only by the affirmative vote of three-fifths of the 

Members, duly chosen and sworn. 

(2) APPEALS.—Appeals in the Senate from the decisions of 

the Chair relating to any provision of this section shall be limited to 1 hour, to be equally divided between, and controlled 

by, the appellant and the manager of the bill or joint resolution, as the case may be. An affirmative vote of three-fifths of 

the Members of the Senate, duly chosen and sworn, shall be 

required to sustain an appeal of the ruling of the Chair on a 

point of order raised under this section. 

(c) DETERMINATION OF BUDGET LEVELS.—For purposes of this 

section, the levels of new budget authority, outlays, and revenues 

for a fiscal year shall be determined on the basis of estimates made 

by the Senate Committee on the Budget. 

(d) SUNSET.—This section shall expire on September 30, 2017. 

(e) REPEAL.—In the Senate, section 505 of H. Con. Res. 95 

(108th Congress), the fiscal year 2004 concurrent resolution on the 

budget, shall no longer apply. 

SEC. 202. SENATE POINT OF ORDER AGAINST RECONCILIATION LEGISLATION THAT WOULD INCREASE THE DEFICIT OR REDUCE A SURPLUS. 

(a) IN GENERAL.—It shall not be in order in the Senate to consider any reconciliation bill, resolution, amendment, amendment 

between Houses, motion, or conference report pursuant to section 

310 of the Congressional Budget Act of 1974 that would cause or 

increase a deficit or reduce a surplus in either of the following periods: 

(1) The current fiscal year, the budget year, and the ensuing 4 fiscal years following the budget year. 

(2) The current fiscal year, the budget year, and the ensuing 9 fiscal years following the budget year. 

(b) SUPERMAJORITY WAIVER AND APPEAL IN THE SENATE.— 

(1) WAIVER.—This section may be waived or suspended in 

the Senate only by an affirmative vote of three-fifths of the 

Members, duly chosen and sworn. 

(2) APPEAL.—An affirmative vote of three-fifths of the 

Members of the Senate, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the 

Chair on a point of order raised under this section. 
281 Sec. 204 S. CON. RES. 21, 110TH CONGRESS 

(c) DETERMINATION OF BUDGET LEVELS.—For purposes of this 

section, the levels of net deficit increases shall be determined on 

the basis of estimates provided by the Senate Committee on the 

Budget. 

SEC. 203. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING LONG-TERM DEFICITS. 

(a) CONGRESSIONAL BUDGET OFFICE ANALYSIS OF PROPOSALS.— 

The Director of the Congressional Budget Office shall, to the extent 

practicable, prepare for each bill and joint resolution reported from 

committee (except measures within the jurisdiction of the Committee on Appropriations), and amendments thereto and conference 

reports thereon, an estimate of whether the measure would cause, 

relative to current law, a net increase in deficits in excess of 

$5,000,000,000 in any of the four 10-year periods beginning in fiscal year 2018 through fiscal year 2057. 

(b) POINT OF ORDER.—It shall not be in order in the Senate to 

consider any bill, joint resolution, amendment, motion, or conference report that would cause a net increase in deficits in excess 

of $5,000,000,000 in any of the 4 10-year periods beginning in 2018 

through 2057. 

(c) SUPERMAJORITY WAIVER AND APPEAL IN THE SENATE.— 

(1) WAIVER.—This section may be waived or suspended 

only by the affirmative vote of three-fifths of the Members, 

duly chosen and sworn. 

(2) APPEAL.—An affirmative vote of three-fifths of the 

Members, duly chosen and sworn, shall be required to sustain 

an appeal of the ruling of the Chair on a point of order raised 

under this section. 

(d) DETERMINATIONS OF BUDGET LEVELS.—For purposes of this 

section, the levels of net deficit increases shall be determined on 

the basis of estimates provided by the Senate Committee on the 

Budget. 

(e) REPEAL.—In the Senate, section 407 of H. Con. Res. 95 

(109th Congress), the concurrent resolution on the budget for fiscal 

year 2006, shall no longer apply. 

(f) SUNSET.—This section shall expire on September 30, 2017. 

SEC. 204. EMERGENCY LEGISLATION. 

(a) SENATE.— 

(1) AUTHORITY TO DESIGNATE.—In the Senate, with respect 

to a provision of direct spending or receipts legislation or appropriations for discretionary accounts that Congress designates as an emergency requirement in such measure, the 

amounts of new budget authority, outlays, and receipts in all 

fiscal years resulting from that provision shall be treated as an 

emergency requirement for the purpose of this subsection. 

(2) EXEMPTION OF EMERGENCY PROVISIONS.—Any new 

budget authority, outlays, and receipts resulting from any provision designated as an emergency requirement, pursuant to 

this subsection, in any bill, joint resolution, amendment, or 

conference report shall not count for purposes of sections 302 

and 311 of the Congressional Budget Act of 1974 and sections 

201, 203, and 207 of this resolution (relating to pay-as-you-go 
Sec. 204 S. CON. RES. 21, 110TH CONGRESS 282 

in the Senate, long-term deficits, and discretionary spending 

limits). 

(3) DESIGNATIONS.—If a provision of legislation is designated as an emergency requirement under this subsection, 

the committee report and any statement of managers accompanying that legislation shall include an explanation of the 

manner in which the provision meets the criteria in paragraph 

(6). 

(4) DEFINITIONS.—In this subsection, the terms ‘‘direct 

spending’’, ‘‘receipts’’, and ‘‘appropriations for discretionary accounts’’ mean any provision of a bill, joint resolution, amendment, motion, or conference report that affects direct spending, 

receipts, or appropriations as those terms have been defined 

and interpreted for purposes of the Balanced Budget and 

Emergency Deficit Control Act of 1985. 

(5) POINT OF ORDER.— (A) IN GENERAL.—When the Senate is considering a 

bill, resolution, amendment, motion, or conference report, 

if a point of order is made by a Senator against an emergency designation in that measure, that provision making 

such a designation shall be stricken from the measure and 

may not be offered as an amendment from the floor. 

(B) SUPERMAJORITY WAIVER AND APPEALS.— 

(i) WAIVER.—Subparagraph (A) may be waived or 

suspended in the Senate only by an affirmative vote of 

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

(ii) APPEALS.—Appeals in the Senate from the decisions of the Chair relating to any provision of this 

paragraph shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and 

the manager of the bill or joint resolution, as the case 

may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair 

on a point of order raised under this paragraph. 

(C) DEFINITION OF AN EMERGENCY DESIGNATION.—For 

purposes of subparagraph (A), a provision shall be considered an emergency designation if it designates any item as 

an emergency requirement pursuant to this subsection. 

(D) FORM OF THE POINT OF ORDER.—A point of order 

under subparagraph (A) may be raised by a Senator as 

provided in section 313(e) of the Congressional Budget Act 

of 1974. 

(E) CONFERENCE REPORTS.—When the Senate is considering a conference report on, or an amendment between 

the Houses in relation to, a bill, upon a point of order 

being made by any Senator pursuant to this subsection, 

and such point of order being sustained, such material contained in such conference report shall be deemed stricken, 

and the Senate shall proceed to consider the question of 

whether the Senate shall recede from its amendment and 

concur with a further amendment, or concur in the House 

amendment with a further amendment, as the case may 

be, which further amendment shall consist of only that 
283 Sec. 206 S. CON. RES. 21, 110TH CONGRESS 

portion of the conference report or House amendment, as 

the case may be, not so stricken. Any such motion in the 

Senate shall be debatable. In any case in which such point 

of order is sustained against a conference report (or Senate 

amendment derived from such conference report by operation of this paragraph), no further amendment shall be in 

order. 

(6) CRITERIA.— 

(A) IN GENERAL.—For purposes of this subsection, any 

provision is an emergency requirement if the situation addressed by such provision is— 

(i) necessary, essential, or vital (not merely useful 

or beneficial); 

(ii) sudden, quickly coming into being, and not 

building up over time; 

(iii) an urgent, pressing, and compelling need requiring immediate action; 

(iv) subject to subparagraph (B), unforeseen, unpredictable, and unanticipated; and 

(v) not permanent, temporary in nature. 

(B) UNFORESEEN.—An emergency that is part of an aggregate level of anticipated emergencies, particularly when 

normally estimated in advance, is not unforeseen. 

(7) REPEAL.—In the Senate, section 402 of H. Con. Res. 95 

(109th Congress), the concurrent resolution on the budget for 

fiscal year 2006, shall no longer apply. 

(b) HOUSE.—In the House, if any bill or joint resolution, or 

amendment offered or considered as adopted or conference report 

thereon, that makes appropriations for discretionary amounts, and 

such amounts are designated as necessary to meet emergency 

needs, then the new budget authority and outlays resulting therefrom shall not be counted for the purposes of titles III and IV of 

the Congressional Budget Act of 1974. 

SEC. 205. EXTENSION OF ENFORCEMENT OF BUDGETARY POINTS OF 

ORDER IN THE SENATE. 

Notwithstanding any provision of the Congressional Budget 

Act of 1974, subsections (c)(2) and (d)(3) of section 904 of the Congressional Budget Act of 1974 shall remain in effect for purposes 

of Senate enforcement through September 30, 2017, and Section 

403 of H. Con. Res. 95 (109th Congress) shall no longer apply in 

the Senate. 

SEC. 206. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS. 

(a) SENATE.— 

(1) IN GENERAL.— 

(A) POINT OF ORDER.—Except as provided in paragraph (2), it shall not be in order in the Senate to consider 

any bill, joint resolution, motion, amendment, or conference report that would provide an advance appropriation. 

(B) DEFINITION.—In this subsection, the term ‘‘advance appropriation’’ means any new budget authority provided in a bill or joint resolution making appropriations for 

fiscal year 2008 that first becomes available for any fiscal 
Sec. 206 S. CON. RES. 21, 110TH CONGRESS 284 

year after 2008, or any new budget authority provided in 

a bill or joint resolution making general appropriations or 

continuing appropriations for fiscal year 2009, that first 

becomes available for any fiscal year after 2009. 

(2) EXCEPTIONS.—Advance appropriations may be provided— 

(A) for fiscal years 2009 and 2010 for programs, 

projects, activities, or accounts identified in the joint explanatory statement of managers accompanying this resolution under the heading ‘‘Accounts Identified for Advance 

Appropriations’’ in an aggregate amount not to exceed 

$25,158,000,000 in new budget authority in each year; and 

(B) for the Corporation for Public Broadcasting. 

(3) SUPERMAJORITY WAIVER AND APPEAL.— (A) WAIVER.—In the Senate, paragraph (1) may be 

waived or suspended only by an affirmative vote of threefifths of the Members, duly chosen and sworn. 

(B) APPEAL.—An affirmative vote of three-fifths of the 

Members of the Senate, duly chosen and sworn, shall be 

required to sustain an appeal of the ruling of the Chair on 

a point of order raised under paragraph (1). 

(4) FORM OF POINT OF ORDER.—A point of order under 

paragraph (1) may be raised by a Senator as provided in section 313(e) of the Congressional Budget Act of 1974. 

(5) CONFERENCE REPORTS.—When the Senate is considering a conference report on, or an amendment between the 

Houses in relation to, a bill, upon a point of order being made 

by any Senator pursuant to this subsection, and such point of 

order being sustained, such material contained in such conference report shall be deemed stricken, and the Senate shall 

proceed to consider the question of whether the Senate shall 

recede from its amendment and concur with a further amendment, or concur in the House amendment with a further 

amendment, as the case may be, which further amendment 

shall consist of only that portion of the conference report or 

House amendment, as the case may be, not so stricken. Any 

such motion in the Senate shall be debatable. In any case in 

which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment 

shall be in order. 

(6) REPEAL.—In the Senate, section 401 of H. Con. Res. 95 

(109th Congress), the concurrent resolution on the budget for 

fiscal year 2006, shall no longer apply. 

(b) HOUSE.— (1) IN GENERAL.—In the House, except as provided in paragraph (2), a bill or joint resolution making a general appropriation or continuing appropriation, or an amendment thereto 

may not provide for advance appropriations. 

(2) ADVANCE APPROPRIATION.—In the House, an advance 

appropriation may be provided for fiscal year 2009 or 2010 for 

programs, projects, activities, or accounts identified in the joint 

explanatory statement of managers accompanying this resolution under the heading ‘‘Accounts Identified for Advance Ap-
285 Sec. 209 S. CON. RES. 21, 110TH CONGRESS 

propriations’’ in an aggregate amount not to exceed 

$25,558,000,000 in new budget authority. 

(3) DEFINITION.—In this subsection, the term ‘‘advance appropriation’’ means any new discretionary budget authority 

provided in a bill or joint resolution making general appropriations or any new discretionary budget authority provided in a 

bill or joint resolution continuing appropriations for fiscal year 

2008 that first becomes available for any fiscal year after 2008. 

SEC. 207. DISCRETIONARY SPENDING LIMITS, PROGRAM INTEGRITY 

INITIATIVES, AND OTHER ADJUSTMENTS. 

[Omitted] 

SEC. 208. APPLICATION OF PREVIOUS ALLOCATIONS IN THE SENATE. 

Section 7035 of Public Law 109–234 shall no longer apply in 

the Senate. 

SEC. 209. SENATE POINT OF ORDER AGAINST PROVISIONS OF APPROPRIATIONS LEGISLATION THAT CONSTITUTE CHANGES IN 

MANDATORY PROGRAMS WITH NET COSTS. 

(a) IN GENERAL.—In the Senate, it shall not be in order to consider any appropriations legislation, including any amendment 

thereto, motion in relation thereto, or conference report thereon, 

that includes any provision which constitutes a change in a mandatory program producing net costs, as defined in subsection (b), that 

would have been estimated as affecting direct spending or receipts 

under section 252 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 (as in effect prior to September 30, 2002) were 

they included in legislation other than appropriations legislation. A 

point of order pursuant to this section shall be raised against such 

provision or provisions as described in subsections (e) and (f). 

(b) CHANGES IN MANDATORY PROGRAMS PRODUCING NET

COSTS.—A provision or provisions shall be subject to a point of 

order pursuant to this section if— 

(1) the provision would increase budget authority in at 

least 1 of the 9 fiscal years that follow the budget year and 

over the period of the total of the budget year and the 9 fiscal 

years following the budget year; 

(2) the provision would increase net outlays over the period of the total of the 9 fiscal years following the budget year; 

and 

(3) the sum total of all changes in mandatory programs in 

the legislation would increase net outlays as measured over the 

period of the total of the 9 fiscal years following the budget 

year. 

(c) DETERMINATION.—The determination of whether a provision 

is subject to a point of order pursuant to this section shall be made 

by the Committee on the Budget of the Senate. 

(d) SUPERMAJORITY WAIVER AND APPEAL.—This section may be 

waived or suspended in the Senate only by an affirmative vote of 

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

vote of three-fifths of the Members of the Senate, duly chosen and 

sworn, shall be required to sustain an appeal of the ruling of the 

Chair on a point of order raised under this section. 

(e) GENERAL POINT OF ORDER.—It shall be in order for a Senator to raise a single point of order that several provisions of a bill, 
Sec. 209 S. CON. RES. 21, 110TH CONGRESS 286 

resolution, amendment, motion, or conference report violate this 

section. The Presiding Officer may sustain the point of order as to 

some or all of the provisions against which the Senator raised the 

point of order. If the Presiding Officer so sustains the point of order 

as to some of the provisions (including provisions of an amendment, 

motion, or conference report) against which the Senator raised the 

point of order, then only those provisions (including provision of an 

amendment, motion, or conference report) against which the Presiding Officer sustains the point of order shall be deemed stricken 

pursuant to this section. Before the Presiding Officer rules on such 

a point of order, any Senator may move to waive such a point of 

order as it applies to some or all of the provisions against which 

the point of order was raised. Such a motion to waive is amendable 

in accordance with rules and precedents of the Senate. After the 

Presiding Officer rules on such a point of order, any Senator may 

appeal the ruling of the Presiding Officer on such a point of order 

as it applies to some or all of the provisions on which the Presiding 

Officer ruled. 

(f) FORM OF THE POINT OF ORDER.—When the Senate is considering a conference report on, or an amendment between the Houses 

in relation to, a bill, upon a point of order being made by any Senator pursuant to this section, and such point of order being sustained, such material contained in such conference report or 

amendment shall be deemed stricken, and the Senate shall proceed 

to consider the question of whether the Senate shall recede from 

its amendment and concur with a further amendment, or concur in 

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

be, which further amendment shall consist of only that portion of 

the conference report or House amendment, as the case may be, 

not so stricken. Any such motion shall be debatable. In any case 

in which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by 

operation of this subsection), no further amendment shall be in 

order. 

(g) EFFECTIVENESS.—This section shall not apply to— 

(1) legislation making supplemental appropriations for fiscal year 2007; and 

(2) any provision constituting a change in a mandatory 

program in appropriations legislation if such provision has 

been enacted in each of the 3 fiscal years prior to the budget 

year. 

* * * * * * * 
287 

S. CON. RES. 70, 110TH CONGRESS 

Title III—Budget Enforcement 

Subtitle A—House Enforcement Provisions 

SEC. 301. PROGRAM INTEGRITY INITIATIVES AND OTHER ADJUSTMENTS. 

[Omitted] 

SEC. 302. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS. 

[Omitted] 

Senate Enforcement Provisions 

SEC. 311. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING LONG-TERM DEFICITS. 

(a) CONGRESSIONAL BUDGET OFFICE ANALYSIS OF PROPOSALS.— 

The Director of the Congressional Budget Office shall, to the extent 

practicable, prepare for each bill and joint resolution reported from 

committee (except measures within the jurisdiction of the Committee on Appropriations), and amendments thereto and conference 

reports thereon, an estimate of whether the measure would cause, 

relative to current law, a net increase in deficits in excess of 

$5,000,000,000 in any of the 4 consecutive 10-year periods beginning with the first fiscal year that is 10 years after the budget year 

provided for in the most recently adopted concurrent resolution on 

the budget. 

(b) POINT OF ORDER.—It shall not be in order in the Senate to 

consider any bill, joint resolution, amendment, motion, or conference report that would cause a net increase in deficits in excess 

of $5,000,000,000 in any of the 4 consecutive 10-year periods described in subsection (a). 

(c) SUPERMAJORITY WAIVER AND APPEAL IN THE SENATE.— 

(1) WAIVER.—This section may be waived or suspended 

only by the affirmative vote of three-fifths of the Members, 

duly chosen and sworn. 

(2) APPEAL.—An affirmative vote of three-fifths of the 

Members, duly chosen and sworn, shall be required to sustain 

an appeal of the ruling of the Chair on a point of order raised 

under this section. 

(d) DETERMINATIONS OF BUDGET LEVELS.—For purposes of this 

section, the levels of net deficit increases shall be determined on 

the basis of estimates provided by the Senate Committee on the 

Budget. 

(e) SUNSET.—This section shall expire on September 30, 2017. 
Sec. 312 S. CON. RES. 70, 110TH CONGRESS 288 

(f) REPEAL.—In the Senate, subsections (a) through (d) and 

subsection (f) of section 203 of S. Con. Res. 21 (110th Congress) 

shall no longer apply. 

SEC. 312. DISCRETIONARY SPENDING LIMITS, PROGRAM INITIATIVES, 

AND OTHER ADJUSTMENTS. 

[Omitted] 

SEC. 313. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS. 

[Omitted] 

SEC. 314. SENATE POINT OF ORDER AGAINST PROVISIONS OF APPROPRIATIONS LEGISLATION THAT CONSTITUTE CHANGES IN 

MANDATORY PROGRAMS WITH NET COSTS. 

(a) IN GENERAL.—In the Senate, it shall not be in order to consider any appropriations legislation, including any amendment 

thereto, motion in relation thereto, or conference report thereon, 

that includes any provision which constitutes a change in a mandatory program producing net costs, as defined in subsection (b), that 

would have been estimated as affecting direct spending or receipts 

under section 252 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 (as in effect prior to September 30, 2002) were 

they included in legislation other than appropriations legislation. A 

point of order pursuant to this section shall be raised against such 

provision or provisions as described in subsections (e) and (f). 

(b) CHANGES IN MANDATORY PROGRAMS PRODUCING NET

COSTS.—A provision or provisions shall be subject to a point of 

order pursuant to this section if— 

(1) the provision would increase budget authority in at 

least 1 of the 9 fiscal years that follow the budget year and 

over the period of the total of the budget year and the 9 fiscal 

years following the budget year; 

(2) the provision would increase net outlays over the period of the total of the 9 fiscal years following the budget year; 

and 

(3) the sum total of all changes in mandatory programs in 

the legislation would increase net outlays as measured over the 

period of the total of the 9 fiscal years following the budget 

year. 

(c) DETERMINATION.—The determination of whether a provision 

is subject to a point of order pursuant to this section shall be made 

by the Committee on the Budget of the Senate. 

(d) SUPERMAJORITY WAIVER AND APPEAL.—This section may be 

waived or suspended in the Senate only by an affirmative vote of 

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

vote of three-fifths of the Members of the Senate, duly chosen and 

sworn, shall be required to sustain an appeal of the ruling of the 

Chair on a point of order raised under this section. 

(e) GENERAL POINT OF ORDER.—It shall be in order for a Senator to raise a single point of order that several provisions of a bill, 

resolution, amendment, motion, or conference report violate this 

section. The Presiding Officer may sustain the point of order as to 

some or all of the provisions against which the Senator raised the 

point of order. If the Presiding Officer so sustains the point of order 

as to some of the provisions (including provisions of an amendment, 

motion, or conference report) against which the Senator raised the 
289 Sec. 314 S. CON. RES. 70, 110TH CONGRESS 

point of order, then only those provisions (including provision of an 

amendment, motion, or conference report) against which the Presiding Officer sustains the point of order shall be deemed stricken 

pursuant to this section. Before the Presiding Officer rules on such 

a point of order, any Senator may move to waive such a point of 

order as it applies to some or all of the provisions against which 

the point of order was raised. Such a motion to waive is amendable 

in accordance with rules and precedents of the Senate. After the 

Presiding Officer rules on such a point of order, any Senator may 

appeal the ruling of the Presiding Officer on such a point of order 

as it applies to some or all of the provisions on which the Presiding 

Officer ruled. 

(f) FORM OF THE POINT OF ORDER.—When the Senate is considering a conference report on, or an amendment between the Houses 

in relation to, a bill, upon a point of order being made by any Senator pursuant to this section, and such point of order being sustained, such material contained in such conference report or 

amendment shall be deemed stricken, and the Senate shall proceed 

to consider the question of whether the Senate shall recede from 

its amendment and concur with a further amendment, or concur in 

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

be, which further amendment shall consist of only that portion of 

the conference report or House amendment, as the case may be, 

not so stricken. Any such motion shall be debatable. In any case 

in which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by 

operation of this subsection), no further amendment shall be in 

order. 

(g) EFFECTIVENESS.—This section shall not apply to any provision constituting a change in a mandatory program in appropriations legislation if such provision has been enacted in each of the 

3 fiscal years prior to the budget year. 

(h) INAPPLICABILITY.—In the Senate, section 209 of S. Con. Res. 

21 (110th Congress) shall no longer apply. 
Sec. 401 S. CON. RES. 13, 111TH CONGRESS 290 

97This emergency designation does apply to spending as established by the limits set forth 

in the Budget Control Act of 2011—which amended the Balanced Budget and Emergency Control Act of 1985. 

S. CON. RES. 13, 111TH CONGRESS 

* * * * * * * 

Title IV—Budget Process 

Subtitle A—Senate Provisions 

PART I—BUDGET ENFORCEMENT

SEC. 401. DISCRETIONARY SPENDING LIMITS, PROGRAM INTEGRITY 

INITIATIVES, AND OTHER ADJUSTMENTS. 

[Omitted] 

SEC. 402. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS. 

[Omitted] 

SEC. 403. EMERGENCY LEGISLATION.97

(a) AUTHORITY TO DESIGNATE.—In the Senate, with respect to 

a provision of direct spending or receipts legislation or appropriations for discretionary accounts that Congress designates as an 

emergency requirement in such measure, the amounts of new 

budget authority, outlays, and receipts in all fiscal years resulting 

from that provision shall be treated as an emergency requirement 

for the purpose of this section. 

(b) EXEMPTION OF EMERGENCY PROVISIONS.—Any new budget 

authority, outlays, and receipts resulting from any provision designated as an emergency requirement, pursuant to this section, in 

any bill, joint resolution, amendment, or conference report shall not 

count for purposes of sections 302 and 311 of the Congressional 

Budget Act of 1974, section 201 of S. Con. Res. 21 (110th Congress) 

(relating to pay-as-you-go), section 311 of S. Con. Res. 70 (110th 

Congress) (relating to long-term deficits), and sections 401 and 404 

of this resolution (relating to discretionary spending and shortterm 

deficits). Designated emergency provisions shall not count for the 

purpose of revising allocations, aggregates, or other levels pursuant 

to procedures established under section 301(b)(7) of the Congressional Budget Act of 1974 for deficit-neutral reserve funds and revising discretionary spending limits set pursuant to section 301 of 

this resolution. 

(c) DESIGNATIONS.—If a provision of legislation is designated as 

an emergency requirement under this section, the committee report 

and any statement of managers accompanying that legislation shall 

include an explanation of the manner in which the provision meets 

the criteria in subsection (f). 

(d) DEFINITIONS.—In this section, the terms ‘‘direct spending’’, 

‘‘receipts’’, and ‘‘appropriations for discretionary accounts’’ mean 

any provision of a bill, joint resolution, amendment, motion, or conference report that affects direct spending, receipts, or appropriations 
291 Sec. 403 S. CON. RES. 13, 111TH CONGRESS 

as those terms have been defined and interpreted for purposes 

of the Balanced Budget and Emergency Deficit Control Act of 1985. 

(e) POINT OF ORDER.— (1) IN GENERAL.—When the Senate is considering a bill, 

resolution, amendment, motion, or conference report, if a point 

of order is made by a Senator against an emergency designation in that measure, that provision making such a designation 

shall be stricken from the measure and may not be offered as 

an amendment from the floor. 

(2) SUPERMAJORITY WAIVER AND APPEALS.— (A) WAIVER.—Paragraph (1) may be waived or suspended in the Senate only by an affirmative vote of 

threefifths of the Members, duly chosen and sworn. 

(B) APPEALS.—Appeals in the Senate from the decisions of the Chair relating to any provision of this subsection shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager 

of the bill or joint resolution, as the case may be. An affirmative vote of three-fifths of the Members of the Senate, 

duly chosen and sworn, shall be required to sustain an appeal S. Con. Res. 13-33 of the ruling of the Chair on a 

point of order raised under this subsection. 

(3) DEFINITION OF AN EMERGENCY DESIGNATION.—For purposes of paragraph (1), a provision shall be considered an 

emergency designation if it designates any item as an emergency requirement pursuant to this subsection. 

(4) FORM OF THE POINT OF ORDER.—A point of order under 

paragraph (1) may be raised by a Senator as provided in section 313(e) of the Congressional Budget Act of 1974. 

(5) CONFERENCE REPORTS.—When the Senate is considering a conference report on, or an amendment between the 

Houses in relation to, a bill, upon a point of order being made 

by any Senator pursuant to this section, and such point of 

order being sustained, such material contained in such conference report shall be deemed stricken, and the Senate shall 

proceed to consider the question of whether the Senate shall 

recede from its amendment and concur with a further amendment, or concur in the House amendment with a further 

amendment, as the case may be, which further amendment 

shall consist of only that portion of the conference report or 

House amendment, as the case may be, not so stricken. Any 

such motion in the Senate shall be debatable. In any case in 

which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment 

shall be in order. 

(f) CRITERIA.— 

(1) IN GENERAL.—For purposes of this section, any provision is an emergency requirement if the situation addressed by 

such provision is— 

(A) necessary, essential, or vital (not merely useful or 

beneficial); 

(B) sudden, quickly coming into being, and not building up over time; 
Sec. 404 S. CON. RES. 13, 111TH CONGRESS 292 

(C) an urgent, pressing, and compelling need requiring 

immediate action; 

(D) subject to paragraph (2), unforeseen, unpredictable, and unanticipated; and 

(E) not permanent, temporary in nature. 

(2) UNFORESEEN.—An emergency that is part of an aggregate level of anticipated emergencies, particularly when normally estimated in advance, is not unforeseen. 

(g) INAPPLICABILITY.—In the Senate, section 204(a) of S. Con. 

Res. 21 (110th Congress), the concurrent resolution on the budget 

for fiscal year 2008, shall no longer apply. 

SEC. 404. POINT OF ORDER AGAINST LEGISLATION INCREASING 

SHORT-TERM DEFICIT. 

(a) POINT OF ORDER.—It shall not be in order in the Senate to 

consider any bill, joint resolution, amendment, motion, or conference report (except measures within the jurisdiction of the Committee on Appropriations) that would cause a net increase in the 

deficit in excess of $10,000,000,000 in any fiscal year provided for 

in the most recently adopted concurrent resolution on the budget 

unless it is fully offset over the period of all fiscal years provided 

for in the most recently adopted concurrent resolution on the budget. 

(b) SUPERMAJORITY WAIVER AND APPEAL IN THE SENATE.—S. 

Con. Res. 13-34— 

(1) WAIVER.—This section may be waived or suspended 

only by the affirmative vote of three-fifths of the Members, 

duly chosen and sworn. 

(2) APPEAL.—An affirmative vote of three-fifths of the 

Members, duly chosen and sworn, shall be required to sustain 

an appeal of the ruling of the Chair on a point of order raised 

under this section. 

(c) LIMITATION.—The provisions of this section shall not apply 

to any bills, joint resolutions, amendments, motions, or conference 

reports for which the chairman of the Senate Committee on the 

Budget has made adjustments to the allocations, levels or limits 

contained in this resolution pursuant to Section 301(a) of this resolution. 

(d) DETERMINATIONS OF BUDGET LEVELS.—For purposes of this 

section, the levels shall be determined on the basis of estimates 

provided by the Senate Committee on the Budget. 

(e) SUNSET.—This section shall expire on September 30, 2018. 

(f) INAPPLICABILITY.—In the Senate, section 315 of S. Con. Res. 

70 (110th Congress), the concurrent resolution in the budget for fiscal year 2009, shall no longer apply. 

SEC. 405. POINT OF ORDER AGAINST CERTAIN LEGISLATION RELATED 

TO SURFACE TRANSPORTATION FUNDING. 

(a) POINT OF ORDER.—It shall not be in order in the Senate to 

consider any bill, joint resolution, amendment, motion, or conference report that extends the authority or reauthorizes surface 

transportation programs that appropriates budget authority from 

sources other than the Highway Trust Fund, including the Mass 

Transit Account of such fund. 

(b) SUPERMAJORITY WAIVER AND APPEALS IN THE SENATE.— 
293 Sec. 413 S. CON. RES. 13, 111TH CONGRESS 

(1) WAIVER.—This section may be waived or suspended 

only by an affirmative vote of three-fifths of the Members, duly 

chosen and sworn. 

(2) APPEALS.—An affirmative vote of three-fifths of the 

Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a 

point of order raised under this section. 

(c) SUNSET.—This section shall expire on September 30, 2018. 

SEC. 411. OVERSIGHT OF GOVERNMENT PERFORMANCE. 

In the Senate, all committees are directed to review programs 

within their jurisdiction to root out waste, fraud, and abuse in program spending, giving particular scrutiny to issues raised by Government Accountability Office reports. Based on these oversight efforts and committee performance reviews of programs within their 

jurisdiction, committees are directed to include recommendations 

for improved governmental performance in their annual views and 

estimates reports required under section 301(d) of the Congressional Budget Act of 1974 to the Senate Committee on the Budget. 

SEC. 412. BUDGETARY TREATMENT OF CERTAIN DISCRETIONARY ADMINISTRATIVE EXPENSES. 

In the Senate, notwithstanding section 302(a)(1) of the Congressional Budget Act of 1974, section 13301 of the Budget Enforcement Act of 1990, and section 2009a of title 39, United States 

Code, the joint explanatory statement accompanying the conference 

report S. Con. Res. 13—35 on any concurrent resolution on the 

budget shall include in its allocations under section 302(a) of the 

Congressional Budget Act of 1974 to the Senate Committee on Appropriation amounts for the discretionary administrative expenses 

of the Social Security Administration and of the Postal Service. 

SEC. 413. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 

AND AGGREGATES. 

(a) APPLICATION.—In the Senate, any adjustments of allocations and aggregates made pursuant to this resolution shall— 

(1) apply while that measure is under consideration; 

(2) take effect upon the enactment of that measure; and 

(3) be published in the Congressional Record as soon as 

practicable. 

(b) EFFECT OF CHANGED ALLOCATIONS AND AGGREGATES.— 

Revised allocations and aggregates resulting from these adjustments shall be considered for the purposes of the Congressional 

Budget Act of 1974 as allocations and aggregates contained in this 

resolution. 

(c) BUDGET COMMITTEE DETERMINATIONS.—For purposes of 

this resolution the levels of new budget authority, outlays, direct 

spending, new entitlement authority, revenues, deficits, and surpluses for a fiscal year or period of fiscal years shall be determined 

on the basis of estimates made by the Senate Committee on the 

Budget. 

(d) ADJUSTMENTS.—The chairman of the Senate Committee on 

the Budget may adjust the aggregates, allocations, and other levels 

and limits in this resolution for legislation which has received final 

Congressional approval in the same form by the House of Representatives and the Senate, but has yet to be presented to or 
Sec. 414 SENATE PROCEDURES OF THE BUDGET CONTROL ACT OF 2011 294 

98The Budget Control Act of 2011 in its entirety may be found in the compilation beginning 

on page 169. 

signed by the President at the time of final consideration of this 

resolution. 

SEC. 414. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 

DEFINITIONS. 

Upon the enactment of a bill or joint resolution providing for 

a change in concepts or definitions, the chairman of the Senate 

Committee on the Budget may make adjustments to the levels and 

allocations in this resolution in accordance with section 251(b) of 

the Balanced Budget and Emergency Deficit Control Act of 1985 

(as in effect prior to September 30, 2002). 

SEC. 415. EXERCISE OF RULEMAKING POWERS. 

The Senate adopts the provisions of this subtitle— 

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

and as such they shall be considered as part of the rules of the 

Senate and such rules shall supersede other rules only to the 

extent that they are inconsistent with such other rules; and 

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

Senate to change those rules at any time, in the same manner, 

and to the same extent as is the case of any other rule of the 

Senate. 

BUDGET CONTROL ACT OF 2011 (Public Law 112–25)98

* * * * * * * 

SEC. 106. SENATE BUDGET ENFORCEMENT. 

(a) IN GENERAL.— 

(1) For the purpose of enforcing the Congressional Budget 

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

that Act, and enforcing budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, 

and levels set in subsection (b)(1) shall apply in the Senate in 

the same manner as for a concurrent resolution on the budget 

for fiscal year 2012 with appropriate budgetary levels for fiscal 

years 2011 and 2013 through 2021. 

(2) For the purpose of enforcing the Congressional Budget 

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

Act, and enforcing budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, and 

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

same manner as for a concurrent resolution on the budget for 

fiscal year 2013 with appropriate budgetary levels for fiscal 

years 2012 and 2014 through 2022. 

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.— (1) As soon as practicable after the date of enactment of 

this section, the Chairman of the Committee on the Budget 

shall file— 

(A) for the Committee on Appropriations, committee 

allocations for fiscal years 2011 and 2012 consistent with 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 
295 Sec. 106 SENATE PROCEDURES OF THE BUDGET CONTROL ACT OF 2011 

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 2011, 

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

baseline adjusted to account for the budgetary effects of 

this Act and legislation enacted prior to this Act but not 

included in the Congressional Budget Office’s March 2011 

baseline, for the purpose of enforcing section 302 of the 

Congressional Budget Act of 1974; 

(C) aggregate spending levels for fiscal years 2011 and 

2012 and aggregate revenue levels for fiscal years 2011, 

2012, 2012 through 2016, 2012 through 2021 consistent 

with the Congressional Budget Office’s March 2011 baseline adjusted to account for the budgetary effects of this 

Act and legislation enacted prior to this Act but not included in the Congressional Budget Office’s March 2011 

baseline, and the discretionary spending limits set forth in 

this Act for the purpose of enforcing section 311 of the 

Congressional Budget Act of 1974; and 

(D) levels of Social Security revenues and outlays for 

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

through 2021 consistent with the Congressional Budget 

Office’s March 2011 base line adjusted to account for the 

budgetary effects of this Act and legislation enacted prior 

to this Act but not included in the Congressional Budget 

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

sections 302 and 311 of the Congressional Budget Act of 

1974. 

(2) Not later than April 15, 2012, the Chairman 12 of the 

Committee on the Budget shall file— 

(A) for the Committee on Appropriations, committee 

allocations for fiscal years 2012 and 2013 consistent with 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 2012, 

2013, 2013 through 2017, and 2013 through 2022 consistent with the Congressional Budget Office’s March 2012 

baseline for the purpose of enforcing section 302 of the 

Congressional Budget Act of 1974; 

(C) aggregate spending levels for fiscal years 2012 and 

2013 and aggregate revenue levels for fiscal years 2012, 

2013, 2013—2017, and 2013—2022 consistent with the 

Congressional Budget Office’s March 2012 baseline and 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 311 of the Congressional 

Budget Act of 1974; and 

(D) levels of Social Security revenues and outlays for 

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

consistent with the Congressional Budget Office’s March 

2012 baseline budget for the purpose of enforcing sections 

302 and 311 of the Congressional Budget Act of 1974. 

(c) SENATE PAY-AS-YOU-GO SCORECARD.— 
Sec. 106 SENATE PROCEDURES OF THE BUDGET CONTROL ACT OF 2011 296 

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

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

Congress), the Chairman of the Senate Committee on the 

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

(2) Not later than April 15, 2012, for the purpose of enforcing section 201 of S. Con. Res. 21 (110th Congress), the Chairman of the Senate Committee on the Budget shall reduce any 

balances of direct spending and revenues for any fiscal year to 

0 (zero). 

(3) Upon resetting the Senate paygo scorecard pursuant to 

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

such action in the Congressional Record. 

(d) FURTHER ADJUSTMENTS.— (1) The Chairman of the Committee on the Budget of the 

Senate may revise any allocations, aggregates, or levels set 

pursuant to this section to account for any subsequent adjustments to discretionary spending limits made pursuant to this 

Act. 

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

set or adjustments made pursuant to this section, sections 412 

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

in effect. 

(e) EXPIRATION.— 

(1) Subsections (a)(1), (b)(1), and (c)(1) shall expire if a concurrent resolution on the budget for fiscal year 2012 is agreed 

to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget Act of 1974. 

(2) Subsections (a)(2), (b)(2), and (c)(2) shall expire if a concurrent resolution on the budget for fiscal year 2013 is agreed 

to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget Act of 1974. 
297 

JURISDICTION OF THE COMMITTEE ON THE BUDGET 

OF THE HOUSE OF REPRESENTATIVES 

299 

99 In addition to clauses 1(e), 3(b), and 4(b) of Rule X of the Rules of the House of Representatives, the referral of legislation affecting the budget process is discussed in the Memorandum 

of Understanding as set forth on page H45 of the Congressional Record on January 4, 1995, 

and in a statement by Majority Leader Richard Armey on page E6 of the Congressional Record 

on January 5, 1995. 

JURISDICTION OF HOUSE BUDGET COMMITTEE 99

RULE X 

Organization of Committees. 

Committees and their legislative jurisdictions 

1. There shall be in the House the following standing committees, each of which shall have the jurisdiction and related functions 

assigned by this clause and clauses 2, 3, and 4. All bills, resolutions, and other matters relating to subjects within the jurisdiction 

of the standing committees listed in this clause shall be referred 

to those committees, in accordance with clause 2 of rule XII, as 

follows: 

* * * * * * * 

(e) Committee on the Budget. 

(1) Concurrent resolutions on the budget (as defined in section 3(4) of the Congressional Budget Act of 1974), other matters required to be referred to the committee under titles III 

and IV of that Act, and other measures setting forth appropriate levels of budget totals for the United States Government. 

(2) Budget process generally. 

(3) Establishment, extension, and enforcement of special 

controls over the Federal budget, including the budgetary 

treatment of off-budget Federal agencies and measures providing exemption from reduction under any order issued under 

part C of the Balanced Budget and Emergency Deficit Control 

Act of 1985. 

* * * * * * * 

Special oversight functions 

3. (a) * * * 

(b) The Committee on the Budget shall study on a continuing 

basis the effect on budget outlays of relevant existing and proposed 

legislation and report the results of such studies to the House on 

a recurring basis. 

* * * * * * * 
JURISDICTION OF HOUSE BUDGET COMMITTEE 300 

Additional functions of committees 

4. (a) * * * 

(b) The Committee on the Budget shall— 

(1) review on a continuing basis the conduct by the 

Congressional Budget Office of its functions and duties; 

(2) hold hearings and receive testimony from Members, 

Senators, Delegates, the Resident Commissioner, and such appropriate representatives of Federal departments and agencies, 

the general public, and national organizations as it considers 

desirable in developing concurrent resolutions on the budget 

for each fiscal year; 

(3) make all reports required of it by the Congressional 

Budget Act of 1974; 

(4) study on a continuing basis those provisions of law that 

exempt Federal agencies or any of their activities or outlays 

from inclusion in the Budget of the United States Government, 

and report to the House from time to time its recommendations 

for terminating or modifying such provisions; 

(5) study on a continuing basis proposals designed to improve and facilitate the congressional budget process, and report to the House from time to time the results of such studies, 

together with its recommendations; and 

(6) request and evaluate continuing studies of tax expenditures, devise methods of coordinating tax expenditures, policies, and programs with direct budget outlays, and report the 

results of such studies to the House on a recurring basis. 

* * * * * * * 

JURISDICTION: IN GENERAL

Prior to the 104th Congress, the Budget Committee did not 

have jurisdiction over legislation other than budget resolutions and 

reconciliation bills. Substantive jurisdiction was formally lodged 

with the Committees on Rules and Government Oversight and Reform, although the Budget Committee was unofficially responsible 

for drafting the original Balanced Budget and Emergency Deficit 

Control Act of 1985 and amendments to both that Act and the Congressional Budget Act of 1974. 

With the adoption of the Rules of the House of Representatives 

for the 104th Congress (H. Res. 6) on January 5, 1995, the Budget 

Committee achieved for the first time legislative jurisdiction over 

major elements of the congressional budget process and various 

statutory controls over the Federal budget. The pertinent sections 

of clause 1(d) read as follows: 

(2) * * * other measures setting forth appropriate levels of budget totals for the United States Government. 

(3) Measures relating to the congressional budget process, generally. 

(4) Measures relating to the establishment, extension, 

and enforcement of special controls over the Federal budget, including the budgetary treatment of off-budget Federal 

agencies and measures providing exemption form reduction under any order issued under part C of the Balanced 

Budget and Emergency Deficit Control Act of 1985. 
301 JURISDICTION OF HOUSE BUDGET COMMITTEE 

The addition to (d)(2) was intended to ensure that the Budget 

Committee have substantive jurisdiction over any statement providing for a balanced budget required under the proposed amendment to the U.S. Constitution amendment. The proposed amendment, which passed the House but failed to achieve the necessary 

margin in the Senate, envisioned a legislative vehicle other than 

the concurrent budget resolution which would be presented to the 

President. 

The intent of paragraph (d)(3) was discussed in a memorandum of understanding between Mr. Kasich and Mr. Solomon, 

the chairman of the Committee on Rules. The memorandum states 

that the Budget Committee would have primary jurisdiction over 

budget terminology and the discretionary spending limits. The 

memorandum provided that the Budget Committee was to have 

secondary jurisdiction over such other elements of the congressional budget process. Essentially, the Budget Committee has primary jurisdiction over both budgetary levels and budgetary concepts and secondary jurisdiction over purely procedural aspects of 

the congressional budget process. 

The scope of the jurisdiction of the Committee on the Budget 

was elucidated in an agreement between Representative John Kasich, Chairman of the Committee on the Budget, and Representative William Clinger, the Chairman of the Committee on Government Reform and Oversight (now named the Committee on Oversight and Government Reform), and was inserted into the Congressional Record by Majority Leader Richard Armey. The agreement 

stipulated that the Budget Committee would have jurisdiction over 

the establishment, extension, and enforcement of mandatory and 

discretionary spending limits, PAYGO requirements, and other special budgetary mechanisms to control spending, the deficit, or the 

Federal budgets. 

Furthermore, jurisdiction over the sequestration process would 

migrate from the Government Reform and Oversight Committee to 

the Budget Committee. The agreement also recognized that the 

Government Reform and Oversight Committee would retain, for 

the duration of the 104th Congress, jurisdiction over certain budget 

process already in the legislative pipeline, most notably rescission 

authority, performance budgeting, regulatory budgets, and capital 

budgeting. 

In addition to its legislative duties, the Budget Committee has 

responsibilities for oversight and studies. These responsibilities include oversight of the Congressional Budget Office; study of the 

outlay effects of existing and proposed legislation; study of offbudget entities; study of tax expenditures; and study of proposals 

to improve and facilitate the congressional budget process. 

DEBATE ON H. RES. 6, RULES PACKAGE FOR THE 104TH CONGRESS

CONGRESSIONAL RECORD—HOUSE

[PAGE: H45—JANUARY 4, 1995]

Mr. ARMEY. Mr. Speaker, this agreement addresses the intent 

of the Chairman of the Committee on the Budget and the Chairman of the Committee on Government Reform and Oversight concerning the jurisdiction of each committee over the congressional 
JURISDICTION OF HOUSE BUDGET COMMITTEE 302 

budget process. It is not intended to address jurisdictional issues 

involving the budget process between the Committee on the Budget 

and the Committee on Rules. 

Clause (1)(d)(2) of rule X, relating to all concurrent resolutions 

on the budget and other measures setting forth budget totals for 

the United States, affords the Budget Committee legislative jurisdiction over the establishment and adoption of the congressional 

budget resolution, whether joint or concurrent. This extends to any 

statement setting forth a balanced budget as required by an 

amendment to the United States Constitution, or a capital budget 

or joint/capital operating budget, if mandated. 

Clause (1)(d)(3) of rule X affirms the Budget Committee’s primary jurisdiction over budget terminology and secondary jurisdiction over other elements of the congressional budget process, such 

as those currently provided for in the Congressional Budget Act. 

This includes: The budget resolution, timetable and accompanying 

report language; committee allocations; and the reconciliation process. This paragraph is not, however, intended to provide the Budget Committee with jurisdiction over the following: process changes 

in Federal rescission or impoundment authority; process changes in 

the submission of agency performance plans or reports, or agency 

regulatory plans, reports or reviews as part of the budget process; 

or process changes leading to the required adoption of a Federal 

capital budget or joint capital/operating budget which accounts for 

the fixed assets of the United States Government. In addition, this 

paragraph is not intended to provide the Budget Committee with 

jurisdiction over special funds, accounts or spending set asides created to reduce the deficit. 

Clause (1)(d)(4) of rule X is intended to provide the Budget 

Committee with jurisdiction over measures to control spending, the 

deficit, or the Federal budget. The Budget Committee’s jurisdiction 

will include the establishment, extension and enforcement of mandatory and discretionary spending limits; Pay-As-You-Go requirements for legislation that increases the deficit; and special budgetary mechanisms to control spending, the deficit or the Federal 

budget. The Budget Committee will have jurisdiction over Federal 

sequestrations, including sequestration rules, special rules and exemptions. The Budget Committee is intended to have jurisdiction 

over the selection of programs subject to spending controls, the determination of the numerical level of those controls, and the enforcement of the controls. 

Clause (1)(g)(4) of rule X is intended to retain the Committee 

on Government Reform and Oversight’s legislative jurisdiction 

over: measures relating to process changes in Federal rescission or 

impoundment authority; measures relating to Executive agency 

budgeting, including the submission of agency performance reports 

or plans, or agency regulatory plans, reports or reviews as part of 

the Federal budget process; measures relating to Executive agency 

financial management; and process changes leading to the required 

adoption of a Federal capital budget or joint capital/operating budget which accounts for the fixed assets of the United States Government. In addition, the Committee on Government Reform and 

Oversight retains jurisdiction over special funds, accounts and 

spending set asides created to reduce the deficit. 
303 JURISDICTION OF HOUSE BUDGET COMMITTEE 

MEMORANDUM OF UNDERSTANDING

Committee on the Budget and the Committee on Rules 

Hon. JOHN R. KASICH

(EXTENSION OF REMARKS)

[PAGE: E36]

Wednesday, January 4, 1995 

Mr. KASICH. Mr. Speaker, I rise in support of the Rules package and wish to take this opportunity to thank my colleagues on 

the Committee on Rules and the Committee on Oversight and Reform for their cooperation in providing the Committee on the Budget legislative jurisdiction in the area of the budget process reform. 

I submit today the following Memorandum of Understanding between the distinguished chairman of the Committee on Rules, Gerald B.H. Solomon, and I on the intent of subparagraph (1)(d)(3) as 

it pertains to the Committee on Rules and the Committee on the 

Budget. The distinguished chairman of the Committee on Government Reform, and Oversight, William F. Clinger, shall submit a 

similar Memorandum of Understanding on budget process reform 

as it pertains to the Committee on Government Reform and Oversight and the Committee on the Budget. 

HOUSE OF REPRESENTATIVES, 

Washington, DC. 

This statement addresses the intent of subparagraph (1)(d)(3) 

as it pertains to the Committee on the Budget and the Committee 

on Rules. 

Subparagraph (1)(d)(3) relating to the Congressional Budget 

process is intended to provide the Committee on the Budget primary jurisdiction over budgetary terminology and the discretionary 

spending limits that are set forth in the Congressional Budget Act. 

It is also understood that the Committee on the Budget shall have 

secondary jurisdiction over the other elements of the Congressional 

budget process that are under the primary jurisdiction of the Committee on Rules. Such jurisdiction shall include the budget timetable, the budget resolution and its report, committee allocations, 

the reconciliation process, and related enforcement procedures. It is 

understood that the Committee on Rules will remain the Committee of primary jurisdiction over all aspects of the Congressional 

budget process that are within the joint rule-making authority of 

Congress except for budgetary terminology and the discretionary 

spending limits. 

GERALD B.H. SOLOMON, Chairman, 

Committee on Rules. 

JOHN R. KASICH, Chairman, 

Committee on the Budget. 

305 

JURISDICTION OF THE COMMITTEE ON THE BUDGET 

OF THE UNITED STATES SENATE 

307 

100Sections 101(d) and (e) of S. Res. 445 (108th Congress) superseded the Unanimous Consent 

Agreement of August 4, 1977, regarding legislation affecting the budget process. 

JURISDICTION OF SENATE BUDGET COMMITTEE 

The jurisdiction of the Committee on the Budget of the Senate 

is established under congressional rules, a long-standing unanimous consent agreement, and S.Res.445 (108th Congress). 

S. RES. 445 100

SEC. 101. (a) * * * 

(d) JURISDICTION OF BUDGET COMMITTEE—Notwithstanding 

paragraph (b)(3) of this section, and except as otherwise provided 

in the Congressional Budget Act of 1974, the Committee on the 

Budget shall have exclusive jurisdiction over measures affecting 

the congressional budget process, which are— 

(1) the functions, duties, and powers of the Budget Committee; 

(2) the functions, duties, and powers of the Congressional 

Budget Office; 

(3) the process by which Congress annually establishes the 

appropriate levels of budget authority, outlays, revenues, deficits or surpluses, and public debt—including subdivisions 

thereof—and including the establishment of mandatory ceilings 

on spending and appropriations, a floor on revenues, timetables for congressional action on concurrent resolutions, on 

the reporting of authorization bills, and on the enactment of 

appropriation bills, and enforcement mechanisms for budgetary 

limits and timetables; 

(4) the limiting of backdoor spending devices; 

(5) the timetables for Presidential submission of appropriations and authorization requests; 

(6) the definitions of what constitutes impoundment—such 

as ‘rescissions’ and deferrals’; 

(7) the process and determination by which impoundments 

must be reported to and considered by Congress; 

(8) the mechanisms to insure Executive compliance with 

the provisions of the Impoundment Control Act, title X—such 

as GAO review and lawsuits; and 

(9) the provisions which affect the content or determination of amounts included in or excluded from the congressional 

budget or the calculation of such amounts, including the definition of terms provided by the Budget Act. 

(e) OMB NOMINEES—The Committee on the Budget and the 

Committee on Homeland Security and Governmental Affairs shall 

have joint jurisdiction over the nominations of persons nominated 

by the President to fill the positions of Director and Deputy Direc-
JURISDICTION OF SENATE BUDGET COMMITTEE 308 

tor for Budget within the Office of Management and Budget, and 

if one committee votes to order reported such a nomination, the 

other must report within 30 calendar days session, or be automatically discharged. 

RULE XXV 

STANDING COMMITTEES 

1. The following standing committees shall be appointed at the 

commencement of each Congress, and shall continue and have the 

power to act until their successors are appointed, with leave to report by bill or otherwise on matters within their respective 

jurisdictions: 

(a) * * * 

* * * * * * * 

(e)(1) Committee on the Budget, to which committee shall be 

referred all concurrent resolutions on the budget (as defined in section 3(a)(4) of the Congressional Budget Act of 1974) and all other 

matters required to be referred to that committee under titles III 

and IV of that Act, and messages, petitions, memorials, and other 

matters relating thereto. 

(2) Such committee shall have the duty— 

(A) to report the matters required to be reported by it 

under titles III and IV of the Congressional Budget Act of 

1974; 

(B) to make continuing studies of the effect on budget 

outlays of relevant existing and proposed legislation and to 

report the results of such studies to the Senate on a recurring basis; 

(C) to request and evaluate continuing studies of tax 

expenditures, to devise methods of coordinating tax expenditures, policies, and programs with direct budget outlays, and to report the results of such studies to the Senate 

on a recurring basis; and 

(D) to review, on a continuing basis, the conduct by 

the Congressional Budget Office of its functions and duties. 

* * * * * * * 

UNANIMOUS CONSENT AGREEMENT OF 

JANUARY 30, 1975 

(as modified on April 11, 1986) with respect to Rescissions and Deferrals (which had 

the effect of adopting the language of Senate Resolution 45 which is set forth below): 

Resolved, 

1. That messages received pursuant to title X of the Congressional Budget and Impoundment Control Act be referred concurrently to the Appropriations Committee, to the Budget Committee, 

and to any other appropriate authorizing committee. 

2. That bills, resolutions and joint resolutions introduced with 

respect to rescissions and deferrals shall be refered to the Appropriations Committee, and Budget Committee, and pending imple-
309 JURISDICTION OF SENATE BUDGET COMMITTEE 

mentations of section 401 of the Congressional Budget and Impoundment Control Act and subject to section 401(d), to any other 

committee exercising jurisdiction over contract and borrowing authority programs as defined by section 401(c)(2)(A) and (B). The 

Budget Committee and such other committees shall report their 

views, if any, to the Appropriations Committee within 20 days following referral of such messages, bills, resolutions, or joint resolutions. The Budget Committee’s consideration shall extend only to 

macroeconomic implications, impact on priorities and aggregate 

spending levels, and the legality of the President’s use of the deferral and rescission mechanism under title X. The Appropriations 

and authorizing committees shall exercise their normal responsibilities over programs and priorities. 

3. If any Committee to which a bill or resolution has been referred recommends its passage, the Appropriations Committee 

shall report the bill or resolution together with its views and reports of the Budget and any appropriate authorizing committees to 

the Senate within: 

(A) the time remaining under the act in the case of rescissions, or 

(B) within 20 days in the case of deferrals. 

4. The 20 day period referred to herein means 20 calendar 

days; and for the purposes of computing the 20 days, recesses or 

adjournments of the Senate for more than 3 days, to a day certain 

shall not be counted; and for recesses and adjournments of more 

than 30 calendar days, continuous duration or the sine die adjournment of a session, the 20 day period shall begin anew on the day 

following the reconvening of the Senate. 

(Agreed to January 30, 1975 (94th Cong., 1st Sess.), found at page S1917 of the 

Congressional Record and as modified on April 11, 1986 (99th Cong., 2d Sess.), 

found on pages S7918–19 of the Congressional Record. 

UNANIMOUS CONSENT AGREEMENT OF AUGUST 4, 1977 

(regarding legislation affecting the budget process 

(the text of which is set forth below)): 

* * * [t]hat legislation affecting the congressional budget 

process, as described below, be referred jointly to the committees 

on the Budget and on Governmental Affairs. If one committee acts 

to report a jointly referred measure, the other must act within 30 

calendar days of the continuous possession, or be automatically discharged. 

Legislative proposals affecting the congressional budget process 

to which this order applies are: 

First. The functions duties, and powers of the Budget Committee—as described in title I of the act; 

Second. The functions, duties, and powers of the Congressional 

Budget Office—as described in title II and IV of the act; 

Third. The process by which Congress annually establishes the 

appropriate levels of budget authority, outlays, revenues, deficits or 

surpluses, and public debt—including subdivisions thereof. That 

process includes the establishment: mandatory ceilings on spending 

and appropriations; a floor on revenues; timetables for congressional action on concurrent resolutions, on the reporting on author-
JURISDICTION OF SENATE BUDGET COMMITTEE 310 

ization bills, and on the enactment of appropriation bills; and enforcement mechanisms for the limits and timetables, all as described in titles III and IV of the act. 

Fourth. The limiting of backdoor spending device—as described 

in title IV of the act; 

Fifth. The timetables for Presidential submission of appropriations and authorization requests—as described in title IV of the 

act; 

Sixth. The definitions of what constitutes impoundment—such 

as ‘‘rescissions’’ and ‘‘deferrals’’ as provided in the Impoundment 

Control Act, title X; 

Seventh. The process and determination by which impoundments must be reported to and considered by Congress—as provided in the Impoundment Control Act, title X; 

Eighth. The mechanisms to insure Executive compliance with 

the provisions of the Impoundment Control Act, title X—such as 

GAO review and lawsuits; and 

Ninth. The provisions which affect the content or determination of amounts included in or excluded from the congressional 

budget or the calculation of such amounts, including the definition 

of terms provided by the Budget Act—as set forth in title I thereof. 

(Agreed to August 4, 1977 (95th Cong., 1st Sess.), found at pages S26709–10 

of the Congressional Record. 
311 

SCOREKEEPING 

313 

101These scorekeeping guidelines are set out in the joint statement of managers that accompanies the Conference Report on the Balanced Budget Act of 1997 (House Report 105–217—Balanced Budget Act of 1997). 102 ‘‘GRH’’ refers to the Balanced Budget and Emergency Deficit Control Act of 1985 (Public 

Law 99–177, December 12, 1985, 99 Stat. 1037), also known as the Gramm-Rudman-Hollings 

Act. 103 Conference Report on the Balanced Budget Act of 1997 (Public Law No: 105–33). 104 CBA refers to the Congressional Budget Act of 1974 (Public Law 93–344). 

SCOREKEEPING 101

These budget scorekeeping guidelines are to be used by the 

House and Senate Budget Committees, the Congressional Budget 

Office, and the Office of Management and Budget (the ‘‘scorekeepers’’) in measuring compliance with the Congressional Budget 

Act of 1974 (CBA), as amended, and GRH 102 as amended, and 

Statutory Pay-go as amended and the Budget Control Act of 2011 

as amended. The purpose of the guidelines is to ensure that the 

scorekeepers measure the effects of legislation on the deficit consistent with established scorekeeping conventions and with the specific requirements in those Acts regarding discretionary spending, 

direct spending, and receipts. These rules shall be reviewed annually by the scorekeepers and revised as necessary to adhere to the 

purpose. These rules shall not be changed unless all of the scorekeepers agree. New accounts or activities shall be classified only 

after consultation among the scorekeepers. Accounts and activities 

shall not be reclassified unless all of the scorekeepers agree. 

1. Classifications of appropriations 

Following the guidelines (pages 1014–1053 of the conference 

report) 103 is a list of appropriations that are normally enacted in 

Appropriations Acts. The list identifies appropriated entitlements 

and other mandatory spending in appropriations acts, and it identifies discretionary appropriations by category. 

2. Outlays prior 

Outlays from prior-year appropriations will be classified consistent with the discretionary mandatory classification of the account from which the outlays occur. 

3. Direct spending programs 

Entitlements and other mandatory programs (including offsetting receipts) will be scored at current law levels as defined in section 257 of GRH, unless Congressional action modifies the authorization legislation. Substantive changes to or restrictions on entitlement law or other mandatory spending law in appropriations laws 

will be scored against the Appropriations Committee section 302(b) 

allocations in the House and the Senate. For the purpose of 

CBA 104 scoring, direct spending savings that are included in both 

an appropriation bill and a reconciliation bill will be scored to the 

reconciliation bill and not to the appropriation bill. For scoring 
Rule 4 SCOREKEEPING 314 

105GRH refers to the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 

99–177, December 12, 1985, 99 Stat. 1037), also known as the Gramm-Rudman-Hollings Act. 

under sections 251 or 252 of GRH,105 such provisions will be scored 

to the first bill enacted. 

4. Transfer of budget authority from a mandatory account to 

a discretionary account 

The transfer of budget authority to a discretionary account will 

be scored as an increase in discretionary budget authority and outlays in the gaining account. The losing account will not show an 

offsetting reduction if the account is an entitlement or mandatory. 

5. Permissive transfer authority 

Permissive transfers will be assumed to occur (in full or in 

part) unless sufficient evidence exists to the contrary. Outlays from 

such transfers will be estimated based on the best information 

available, primarily historical experience and, where applicable, indications of executive or congressional intent. This guideline will 

apply both to specific transfers (transfers where the gaining and 

losing accounts and the amounts subject to transfer can be 

ascertained) and general transfer authority. 

6. Reappropriations 

Reappropriations of expiring balances of budget authority will 

be scored as new budget authority in the fiscal year in which the 

balances become newly available. 

7. Advance appropriations 

Advance appropriations of budget authority will be scored as 

new budget authority in the fiscal year in which the funds become 

newly available for obligation, not when the appropriations are enacted. 

8. Rescissions and transfers of unobligated balances 

Rescissions of unobligated balances will be scored as reductions 

in current budget authority and outlays in the year the money is 

rescinded. 

Transfers of unobligated balances will be scored as reductions 

in current budget authority and outlays in the account from which 

the funds are being transferred, and as increases in budget authority cand outlays in the account to which these funds are being 

transferred. 

In certain instances, these transactions will result in a net 

negative budget authority amounts in the source accounts. For purposes of section 257 of GRH, such amounts of budget authority will 

be projected at zero. Outlay estimates for both the transferring and 

receiving accounts will be based on the spending patterns appropriate to the respective accounts. 

9. Delay of obligations 

Appropriation acts specify a date when funds will become 

available for obligation. It is this date that determines the year for 

which new budget authority is scored. In the absence of such a 

date, the act is assumed to be effective upon enactment. 

If a new appropriation provides that a portion of the budget 

authority shall not be available for obligation until a future fiscal 

year, that portion shall be treated as an advance appropriation of 

budget authority. If a law defers existing budget authority (or unobligated balances) from a year in which it was available for obliga-
315 Rule 11 SCOREKEEPING 

tion to a year in which it was not available for obligation, that law 

shall be scored as a rescission in the current year and a reappropriation in the year in which obligational authority is extended. 

10. Contingent legislation 

If the authority to obligate is contingent on the enactment of 

a subsequent appropriation, new budget authority and outlays will 

be scored with the subsequent appropriation. If a discretionary appropriation is contingent on enactment of a subsequent authorization, new budget authority and outlays will be scored with the appropriation. If a discretionary appropriation is contingent on the 

fulfillment of some action by the Executive Branch or some other 

event normally estimated, new budget authority will be scored with 

the appropriation and outlays will be estimated based on the best 

information about when (or if) the contingency will be met. Nonlaw 

making contingencies within the control of the Congress are not 

scoreable events. 

11. Scoring purchases, lease-purchases, capital leases, and 

operating leases 

When a law provides the authority for an agency to enter into 

a contract for the purchase, lease-purchase, or lease of an asset, 

budget authority and outlays will be scored as follows: 

For lease-purchases and capital leases, budget authority will 

be scored against the legislation in the year in which the budget 

authority is first made available in the amount of the estimated 

net present value of the government’s total estimated legal obligations over the life of the contract, except for imputed interest costs 

calculated at Treasury rates for marketable debt instruments of 

similar maturity to the lease period and identifiable annual operating expenses that would be paid by the government as owner 

(such as utilities, maintenance, and insurance). Property taxes will 

not be considered to be an operating cost. Imputed interest costs 

will be classified as mandatory and will not be scored against the 

legislation or for current level but will count for other purposes. 

For operating leases, budget authority will be scored against 

the legislation in the year in which the budget authority is first 

made available in the amount necessary to cover the government’s 

legal obligations. The amount scored will include the estimated 

total payments expected to arise under the full term of a lease contract or, if the contract will include a cancellation clause, an 

amount sufficient to cover the lease payments for the first fiscal 

year during which the contract is in effect, plus an amount sufficient to cover the costs associated with cancellation of the contract. 

For funds that are self-insuring under existing authority, only 

budget authority to cover the annual lease payment is required to 

be scored. 

Outlays for lease-purchase in which the Federal government 

assumes substantial risk—for example, through an explicit government guarantee of third party financing—will be spread across the 

period during which the contractor constructs, manufactures, or 

purchases the asset. 

Outlays for an operating lease, a capital lease, or a lease-purchase in which the private sector retains substantial risk, will be 

spread across the lease period. In all cases, the total amount of out-
Rule 11 SCOREKEEPING 316 

lays scored over time against legislation will equal the amount of 

budget authority scored against that legislation. 

No special rules apply to scoring purchases of assets (whether 

the asset is exiting or is to be manufactured or constructed). Budget authority is scored in the year in which the authority to purchase is first made available in the amount of the government’s estimated legal obligations. 

Outlays scored will equal the estimated disbursements by the 

government based on the particular purchase arrangement, and 

over time will equal the amount of budget authority scored against 

that legislation. 

Existing contracts will not be rescored. 

To distinguish lease purchases and capital leases from operating leases, the following criteria will be used for defining an operating lease: 

Ownership of the asset remains with the lessor during the 

term of the lease and is not transferred to the government at or 

shortly after the end of the lease period. 

The lease does not contain a bargain-price purchase option. 

The lease term does not exceed 75 percent of the estimated 

economic lifetime of the asset. 

The present value of the minimum lease payments over the life 

of the lease does not exceed 90 percent of the fair market value of 

the asset at the inception of the lease. 

The asset is a general purpose asset rather than being for a 

special purpose of the government and is not built to unique specification for the government as lessee. 

There is a private-sector market for the asset. 

Risks of ownership of the asset should remain with the lessor. 

Risk is defined in terms of how governmental in nature the 

project is. If a project is less governmental in nature, the private 

sector risk is considered to be higher. To evaluate the level of private-sector risk associated with a lease-purchase, legislation and 

lease-purchase contracts will be considered against the following 

type of illustrative criteria, which indicate ways in which the 

project is less governmental: 

There should be no provision of government financing and no 

explicit government guarantee of third party financing. 

Risks of ownership of the asset should remain with the lessor 

unless the Government was at fault for such losses. 

The asset should be a general purpose asset rather than for a 

special purpose of the Government and should not be built to 

unique specification for the Government as lessee. 

There should be a private-sector market for the asset. 

The project should not be constructed on Government land. 

Language that attempts to waive the Anti-Deficiency Act, or to 

limit the amount or timing of obligations recorded, does not change 

the government’s obligations or obligational authority, and so will 

not affect the scoring of budget authority or outlays. 

Unless language that authorizes a project clearly states that no 

obligations are allowed unless budget authority is provided specifically for that project in an appropriations bill in advance of the obligation, the legislation will be interpreted as providing obligation 

authority, in an amount to be estimated by the scorekeepers. 
317 Rule 15 SCOREKEEPING 

106 Congressional Budget Act of 1974. 107 Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99–177, December 12, 1985, 99 Stat. 1037), also known as the Gramm-Rudman-Hollings Act. 

12. Write-offs of uncashed checks, unredeemed food stamps, 

and similar instruments 

Exceptional write-offs of uncashed checks, unredeemed food 

stamps, and similar instruments (i.e., cumulative balances that 

have built up over several years or have been on the books for several years) shall be scored as an adjustment to the means of financing the deficit rather than as an offset. An estimate of write-offs 

or similar adjustments that are part of a continuing routing process shall be netted against outlays in the year in which the writeoff 

will occur. Such write-offs shall be recorded in the account in which 

the outlay was originally recorded. 

13. Reclassification after an agreement 

Except to the extent assumed in a budget agreement, a law 

that has the effect of altering the classification of spending and revenues (e.g., from discretionary to mandatory, special fund to revolving fund, on-budget to off-budget, revenue to offsetting receipt), will 

not be scored as reclassified for the purpose of enforcing a budget 

agreement. 

14. Scoring of receipt increases or direct spending reductions 

for additional administration or program management expenses 

No increase in receipts or decrease in direct spending will be 

scored as a result of provisions of a law that provides direct spending for administration or program management activities. 

15. Asset sales 

If the net financial cost to the government of an asset sale is 

zero or negative (a savings), the amount scored shall be the estimated change in receipts and mandatory outlays in each fiscal year 

on a cost basis. 

If the cost to the government is positive (a loss), the proceeds 

from the sale shall not be scored for the purposes of the CBA 106

or GRH.107

The net financial cost to the Federal government of an asset 

sale shall be the net present value of the cash flows from: 

(1) estimated proceeds from the asset sale; 

(2) the net effect on Federal revenues, if any, based on special tax treatments specified in the legislation; 

(3) the loss of future offsetting receipts that would otherwise be collected under continued government ownership 

(using baseline levels for the projection period and estimated 

levels thereafter); and 

(4) changes in future spending, both discretionary and 

mandatory, from levels that would otherwise occur under continued government ownership (using baseline levels for the 

projection period and at levels estimated to be necessary to operate and maintain the asset thereafter). 

The discount rate used to estimate the net present value shall 

be the average interest rate on marketable Treasury securities of 

similar maturity to the expected remaining useful life of the asset 

for which the estimate is being made, plus 2 percentage points to 
Rule 16 SCOREKEEPING 318 

reflect the economic effects of continued ownership by the Government. 

16. Indefinite borrowing authority and limits on outstanding 

debt 

If legislation imposes or changes a limit on outstanding debt 

for an account financed by indefinite budget authority in the form 

of borrowing authority, the legislation will be scored as changing 

budget authority only if and to the extent the imposition of a limit 

or the change in the existing limit alters the estimated amount of 

obligations that will be incurred. 

17. Pell Scoring Rule 

Pell Scoring Rule: In addition to the scorekeeping rules, the 

following rule from S.Con.Res.18 (109th Congress) remains in effect 

in the Senate: 

SEC. 406. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 

DEFINITIONS. 

* * * * * * * 

(b) PELL GRANTS.— 

(1) BUDGET AUTHORITY.—In the Senate, if appropriations 

of discretionary new budget authority enacted for the Federal 

Pell Grant Program are insufficient to cover the full cost of Pell 

Grants in the upcoming award year, adjusted for any cumulative funding surplus or shortfall from prior years, the budget 

authority counted against the bill for the Pell Grant Program 

shall be equal to the adjusted full cost. 

(2) APPLICATION.—This subsection shall apply only to new 

Pell Grant awards approved in legislation for award year 2006- 

2007 and subsequent award years and shall not apply to the 

cumulative shortfall through award year 2005-2006. 

(3) ESTIMATES.—The estimate of the budget authority associated with the full cost of Pell Grants shall be based on the 

maximum award and any changes in eligibility requirements, 

using current economic and technical assumptions and as determined pursuant to scorekeeping guidelines, if any. 
319 

APPENDICES 

321 

Appendix A 

LINE ITEM VETO ACT OF 1996 

CONSTITUTIONALITY OF LINE ITEM VETO

The United States Supreme Court, in Clinton v. City of New 

York, U.S. Dist. Col. 1998, 118 S.Ct. 2091, 141 L.Ed.2d 393, found 

that the Line Item Veto Act of 1996, Pub.L. 104–130, April 9, 1996, 

110 Stat. 1200, which is part C of title X of the Congressional 

Budget and Impoundment Control Act of 1974, was unconstitutional as a violation of the Presentment Clause of the United 

States Constitution (Art. I, § 7, cl. 2). 

PART C—LINE ITEM VETO

SEC. 1021. ø2 U.S.C. 691¿ LINE ITEM VETO AUTHORITY. 

(a) IN GENERAL.—Notwithstanding the provisions of parts A 

and B, and subject to the provisions of this part, the President 

may, with respect to any bill or joint resolution that has been 

signed into law pursuant to Article I, section 7, of the Constitution 

of the United States, cancel in whole— 

(1) any dollar amount of discretionary budget authority; 

(2) any item of new direct spending; or 

(3) any limited tax benefit; 

if the President— 

(A) determines that such cancellation will— 

(i) reduce the Federal budget deficit; 

(ii) not impair any essential Government functions; 

and 

(iii) not harm the national interest; and 

(B) notifies the Congress of such cancellation by transmitting a special message, in accordance with section 1022, within 

five calendar days (excluding Sundays) after the enactment of 

the law providing the dollar amount of discretionary budget 

authority, item of new direct spending, or limited tax benefit 

that was canceled. 

(b) IDENTIFICATION OF CANCELLATIONS.—In identifying dollar 

amounts of discretionary budget authority, items of new direct 

spending, and limited tax benefits for cancellation, the President 

shall— 

(1) consider the legislative history, construction, and purposes of the law which contains such dollar amounts, items, or 

benefits; 

(2) consider any specific sources of information referenced 

in such law or, in the absence of specific sources of information, the best available information; and 
Sec. 1022 LINE ITEM VETO ACT OF 1996 322 

(3) use the definitions contained in section 1026 in applying this part to the specific provisions of such law. 

(c) EXCEPTION FOR DISAPPROVAL BILLS.—The authority granted 

by subsection (a) shall not apply to any dollar amount of discretionary budget authority, item of new direct spending, or limited 

tax benefit contained in any law that is a disapproval bill as defined in section 1026. 

SEC. 1022. ø2 U.S.C. 691a¿ SPECIAL MESSAGES. 

(a) IN GENERAL.—For each law from which a cancellation has 

been made under this part, the President shall transmit a single 

special message to the Congress. 

(b) CONTENTS.— 

(1) The special message shall specify— 

(A) the dollar amount of discretionary budget authority, item of new direct spending, or limited tax benefit 

which has been canceled, and provide a corresponding reference number for each cancellation; 

(B) the determinations required under section 1021(a), 

together with any supporting material; 

(C) the reasons for the cancellation; 

(D) to the maximum extent practicable, the estimated 

fiscal, economic, and budgetary effect of the cancellation; 

(E) all facts, circumstances and considerations relating 

to or bearing upon the cancellation, and to the maximum 

extent practicable, the estimated effect of the cancellation 

upon the objects, purposes and programs for which the 

canceled authority was provided; and 

(F) include the adjustments that will be made pursuant to section 1024 to the discretionary spending limits 

under section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 and an evaluation of the 

effects of those adjustments upon the sequestration procedures of section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985. 

(2) In the case of a cancellation of any dollar amount of 

discretionary budget authority or item of new direct spending, 

the special message shall also include, if applicable— 

(A) any account, department, or establishment of the 

Government for which such budget authority was to have 

been available for obligation and the specific project or 

governmental functions involved; 

(B) the specific States and congressional districts, if 

any, affected by the cancellation; and 

(C) the total number of cancellations imposed during 

the current session of Congress on States and congressional districts identified in subparagraph (B). 

(c) TRANSMISSION OF SPECIAL MESSAGES TO HOUSE AND SENATE.— 

(1) The President shall transmit to the Congress each special message under this part within five calendar days (excluding Sundays) after enactment of the law to which the cancellation applies. Each special message shall be transmitted to the 

House of Representatives and the Senate on the same calendar 
323 Sec. 1024 LINE ITEM VETO ACT OF 1996 

day. Such special message shall be delivered to the Clerk of 

the House of Representatives if the House is not in session, 

and to the Secretary of the Senate if the Senate is not in session. 

(2) Any special message transmitted under this part shall 

be printed in the first issue of the Federal Register published 

after such transmittal. 

SEC. 1023. ø2 U.S.C. 691b¿ CANCELLATION EFFECTIVE UNLESS DISAPPROVED. 

(a) IN GENERAL.—The cancellation of any dollar amount of discretionary budget authority, item of new direct spending, or limited 

tax benefit shall take effect upon receipt in the House of Representatives and the Senate of the special message notifying the Congress 

of the cancellation. If a disapproval bill for such special message is 

enacted into law, then all cancellations disapproved in that law 

shall be null and void and any such dollar amount of discretionary 

budget authority, item of new direct spending, or limited tax benefit shall be effective as of the original date provided in the law to 

which the cancellation applied. 

(b) COMMENSURATE REDUCTIONS IN DISCRETIONARY BUDGET

AUTHORITY.—Upon the cancellation of a dollar amount of discretionary budget authority under subsection (a), the total appropriation for each relevant account of which that dollar amount is a part 

shall be simultaneously reduced by the dollar amount of that cancellation. 

SEC. 1024. ø2 U.S.C. 691c¿ DEFICIT REDUCTION. 

(a) IN GENERAL.— 

(1) DISCRETIONARY BUDGET AUTHORITY.—OMB shall, for 

each dollar amount of discretionary budget authority and for 

each item of new direct spending canceled from an appropriation law under section 1021(a)— 

(A) reflect the reduction that results from such cancellation in the estimates required by section 251(a)(7) of 

the Balanced Budget and Emergency Deficit Control Act of 

1985 in accordance with that Act, including an estimate of 

the reduction of the budget authority and the reduction in 

outlays flowing from such reduction of budget authority for 

each outyear; and 

(B) include a reduction to the discretionary spending 

limits for budget authority and outlays in accordance with 

the Balanced Budget and Emergency Deficit Control Act of 

1985 for each applicable fiscal year set forth in section 

251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 by amounts equal to the amounts for each 

fiscal year estimated pursuant to subparagraph (A). 

(2) DIRECT SPENDING AND LIMITED TAX BENEFITS.—(A) 

OMB shall, for each item of new direct spending or limited tax 

benefit canceled from a law under section 1021(a), estimate the 

deficit decrease caused by the cancellation of such item or benefit in that law and include such estimate as a separate entry 

in the report prepared pursuant to section 252(d) of the Balanced Budget and Emergency Deficit Control Act of 1985. 
Sec. 1025 LINE ITEM VETO ACT OF 1996 324 

(B) OMB shall not include any change in the deficit resulting from a cancellation of any item of new direct spending or 

limited tax benefit, or the enactment of a disapproval bill for 

any such cancellation, under this part in the estimates and reports required by sections 252(b) and 254 of the Balanced 

Budget and Emergency Deficit Control Act of 1985. 

(b) ADJUSTMENTS TO SPENDING LIMITS.—After ten calendar 

days (excluding Sundays) after the expiration of the time period in 

section 1025(b)(1) for expedited congressional consideration of a 

disapproval bill for a special message containing a cancellation of 

discretionary budget authority, OMB shall make the reduction included in subsection (a)(1)(B) as part of the next sequester report 

required by section 254 of the Balanced Budget and Emergency 

Deficit Control Act of 1985. 

(c) EXCEPTION.—Subsection (b) shall not apply to a cancellation 

if a disapproval bill or other law that disapproves that cancellation 

is enacted into law prior to 10 calendar days (excluding Sundays) 

after the expiration of the time period set forth in section 

1025(b)(1). 

(d) CONGRESSIONAL BUDGET OFFICE ESTIMATES.—As soon as 

practicable after the President makes a cancellation from a law 

under section 1021(a), the Director of the Congressional Budget Office shall provide the Committees on the Budget of the House of 

Representatives and the Senate with an estimate of the reduction 

of the budget authority and the reduction in outlays flowing from 

such reduction of budget authority for each outyear. 

SEC. 1025. ø2 U.S.C. 691d¿ EXPEDITED CONGRESSIONAL CONSIDERATION OF DISAPPROVAL BILLS. 

(a) RECEIPT AND REFERRAL OF SPECIAL MESSAGE.—Each special message transmitted under this part shall be referred to the 

Committee on the Budget and the appropriate committee or committees of the Senate and the Committee on the Budget and the 

appropriate committee or committees of the House of Representatives. Each such message shall be printed as a document of the 

House of Representatives. 

(b) TIME PERIOD FOR EXPEDITED PROCEDURES.— 

(1) There shall be a congressional review period of 30 calendar days of session, beginning on the first calendar day of 

session after the date on which the special message is received 

in the House of Representatives and the Senate, during which 

the procedures contained in this section shall apply to both 

Houses of Congress. 

(2) In the House of Representatives the procedures set 

forth in this section shall not apply after the end of the period 

described in paragraph (1). 

(3) If Congress adjourns at the end of a Congress prior to 

the expiration of the period described in paragraph (1) and a 

disapproval bill was then pending in either House of Congress 

or a committee thereof (including a conference committee of 

the two Houses of Congress), or was pending before the President, a disapproval bill for the same special message may be 

introduced within the first five calendar days of session of the 

next Congress and shall be treated as a disapproval bill under 
325 Sec. 1025 LINE ITEM VETO ACT OF 1996 

this part, and the time period described in paragraph (1) shall 

commence on the day of introduction of that disapproval bill. 

(c) INTRODUCTION OF DISAPPROVAL BILLS.— (1) In order for a disapproval bill to be considered under 

the procedures set forth in this section, the bill must meet the 

definition of a disapproval bill and must be introduced no later 

than the fifth calendar day of session following the beginning 

of the period described in subsection (b)(1). 

(2) In the case of a disapproval bill introduced in the 

House of Representatives, such bill shall include in the first 

blank space referred to in section 1026(6)(C) a list of the reference numbers for all cancellations made by the President in 

the special message to which such disapproval bill relates. 

(d) CONSIDERATION IN THE HOUSE OF REPRESENTATIVES.— (1) Any committee of the House of Representatives to 

which a disapproval bill is referred shall report it without 

amendment, and with or without recommendation, not later 

than the seventh calendar day of session after the date of its 

introduction. If any committee fails to report the bill within 

that period, it is in order to move that the House discharge the 

committee from further consideration of the bill, except that 

such a motion may not be made after the committee has reported a disapproval bill with respect to the same special message. A motion to discharge may be made only by a Member 

favoring the bill (but only at a time or place designated by the 

Speaker in the legislative schedule of the day after the calendar day on which the Member offering the motion announces 

to the House his intention to do so and the form of the motion). 

The motion is highly privileged. Debate thereon shall be limited to not more than one hour, the time to be divided in the 

House equally between a proponent and an opponent. The previous question shall be considered as ordered on the motion to 

its adoption without intervening motion. A motion to reconsider the vote by which the motion is agreed to or disagreed 

to shall not be in order. 

(2) After a disapproval bill is reported or a committee has 

been discharged from further consideration, it is in order to 

move that the House resolve into the Committee of the Whole 

House on the State of the Union for consideration of the bill. 

If reported and the report has been available for at least one 

calendar day, all points of order against the bill and against 

consideration of the bill are waived. If discharged, all points of 

order against the bill and against consideration of the bill are 

waived. The motion is highly privileged. A motion to reconsider 

the vote by which the motion is agreed to or disagreed to shall 

not be in order. During consideration of the bill in the Committee of the Whole, the first reading of the bill shall be dispensed with. General debate shall proceed, shall be confined to 

the bill, and shall not exceed one hour equally divided and controlled by a proponent and an opponent of the bill. The bill 

shall be considered as read for amendment under the fiveminute rule. Only one motion to rise shall be in order, except 

if offered by the manager. No amendment to the bill is in 

order, except any Member if supported by 49 other Members 
Sec. 1025 LINE ITEM VETO ACT OF 1996 326 

(a quorum being present) may offer an amendment striking the 

reference number or numbers of a cancellation or cancellations 

from the bill. Consideration of the bill for amendment shall not 

exceed one hour excluding time for recorded votes and quorum 

calls. No amendment shall be subject to further amendment, 

except pro forma amendments for the purposes of debate only. 

At the conclusion of the consideration of the bill for amendment, the Committee shall rise and report the bill to the House 

with such amendments as may have been adopted. The previous question shall be considered as ordered on the bill and 

amendments thereto to final passage without intervening motion. A motion to reconsider the vote on passage of the bill 

shall not be in order. 

(3) Appeals from decisions of the Chair regarding application of the rules of the House of Representatives to the procedure relating to a disapproval bill shall be decided without debate. 

(4) It shall not be in order to consider under this subsection more than one disapproval bill for the same special 

message except for consideration of a similar Senate bill (unless the House has already rejected a disapproval bill for the 

same special message) or more than one motion to discharge 

described in paragraph (1) with respect to a disapproval bill for 

that special message. 

(e) CONSIDERATION IN THE SENATE.— 

(1) REFERRAL AND REPORTING.—Any disapproval bill introduced in the Senate shall be referred to the appropriate committee or committees. A committee to which a disapproval bill 

has been referred shall report the bill not later than the seventh day of session following the date of introduction of that 

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

that committee shall be automatically discharged from further 

consideration of the bill and the bill shall be placed on the Calendar. 

(2) DISAPPROVAL BILL FROM HOUSE.—When the Senate receives from the House of Representatives a disapproval bill, 

such bill shall not be referred to committee and shall be placed 

on the Calendar. 

(3) CONSIDERATION OF SINGLE DISAPPROVAL BILL.—After 

the Senate has proceeded to the consideration of a disapproval 

bill for a special message, then no other disapproval bill originating in that same House relating to that same message shall 

be subject to the procedures set forth in this subsection. 

(4) AMENDMENTS.— 

(A) AMENDMENTS IN ORDER.—The only amendments in 

order to a disapproval bill are— 

(i) an amendment that strikes the reference number of a cancellation from the disapproval bill; and 

(ii) an amendment that only inserts the reference 

number of a cancellation included in the special message to which the disapproval bill relates that is not 

already contained in such bill. 
327 Sec. 1025 LINE ITEM VETO ACT OF 1996 

(B) WAIVER OR APPEAL.—An affirmative vote of threefifths of the Senators, duly chosen and sworn, shall be required in the Senate— 

(i) to waive or suspend this paragraph; or 

(ii) to sustain an appeal of the ruling of the Chair 

on a point of order raised under this paragraph. 

(5) MOTION NONDEBATABLE.—A motion to proceed to consideration of a disapproval bill under this subsection shall not 

be debatable. It shall not be in order to move to reconsider the 

vote by which the motion to proceed was adopted or rejected, 

although subsequent motions to proceed may be made under 

this paragraph. 

(6) LIMIT ON CONSIDERATION.— (A) After no more than 10 hours of consideration of a 

disapproval bill, the Senate shall proceed, without intervening action or debate (except as permitted under paragraph (9)), to vote on the final disposition thereof to the exclusion of all amendments not then pending and to the exclusion of all motions, except a motion to reconsider or to 

table. 

(B) A single motion to extend the time for consideration under subparagraph (A) for no more than an additional five hours is in order prior to the expiration of such 

time and shall be decided without debate. 

(C) The time for debate on the disapproval bill shall 

be equally divided between the Majority Leader and the 

Minority Leader or their designees. 

(7) DEBATE ON AMENDMENTS.—Debate on any amendment 

to a disapproval bill shall be limited to one hour, equally divided and controlled by the Senator proposing the amendment 

and the majority manager, unless the majority manager is in 

favor of the amendment, in which case the minority manager 

shall be in control of the time in opposition. 

(8) NO MOTION TO RECOMMIT.—A motion to recommit a disapproval bill shall not be in order. 

(9) DISPOSITION OF SENATE DISAPPROVAL BILL.—If the Senate has read for the third time a disapproval bill that originated in the Senate, then it shall be in order at any time 

thereafter to move to proceed to the consideration of a disapproval bill for the same special message received from the 

House of Representatives and placed on the Calendar pursuant 

to paragraph (2), strike all after the enacting clause, substitute 

the text of the Senate disapproval bill, agree to the Senate 

amendment, and vote on final disposition of the House disapproval bill, all without any intervening action or debate. 

(10) CONSIDERATION OF HOUSE MESSAGE.—Consideration in 

the Senate of all motions, amendments, or appeals necessary 

to dispose of a message from the House of Representatives on 

a disapproval bill shall be limited to not more than four hours. 

Debate on each motion or amendment shall be limited to 30 

minutes. Debate on any appeal or point of order that is submitted in connection with the disposition of the House message 

shall be limited to 20 minutes. Any time for debate shall be 

equally divided and controlled by the proponent and the major-
Sec. 1026 LINE ITEM VETO ACT OF 1996 328 

ity manager, unless the majority manager is a proponent of the 

motion, amendment, appeal, or point of order, in which case 

the minority manager shall be in control of the time in opposition. 

(f) CONSIDERATION IN CONFERENCE.— 

(1) CONVENING OF CONFERENCE.—In the case of disagreement between the two Houses of Congress with respect to a 

disapproval bill passed by both Houses, conferees should be 

promptly appointed and a conference promptly convened, if 

necessary. 

(2) HOUSE CONSIDERATION.— 

(A) Notwithstanding any other rule of the House of 

Representatives, it shall be in order to consider the report 

of a committee of conference relating to a disapproval bill 

provided such report has been available for one calendar 

day (excluding Saturdays, Sundays, or legal holidays, unless the House is in session on such a day) and the accompanying statement shall have been filed in the House. 

(B) Debate in the House of Representatives on the conference report and any amendments in disagreement on 

any disapproval bill shall each be limited to not more than 

one hour equally divided and controlled by a proponent 

and an opponent. A motion to further limit debate is not 

debatable. A motion to recommit the conference report is 

not in order, and it is not in order to move to reconsider 

the vote by which the conference report is agreed to or disagreed to. 

(3) SENATE CONSIDERATION.—Consideration in the Senate 

of the conference report and any amendments in disagreement 

on a disapproval bill shall be limited to not more than four 

hours equally divided and controlled by the Majority Leader 

and the Minority Leader or their designees. A motion to recommit the conference report is not in order. 

(4) LIMITS ON SCOPE.— 

(A) When a disagreement to an amendment in the nature of a substitute has been referred to a conference, the 

conferees shall report those cancellations that were included in both the bill and the amendment, and may report a cancellation included in either the bill or the 

amendment, but shall not include any other matter. 

(B) When a disagreement on an amendment or amendments of one House to the disapproval bill of the other 

House has been referred to a committee of conference, the 

conferees shall report those cancellations upon which both 

Houses agree and may report any or all of those cancellations upon which there is disagreement, but shall not include any other matter. 

4SEC. 1026. ø2 U.S.C. 691e¿ DEFINITIONS. 

As used in this part: 

(1) APPROPRIATION LAW.—The term ‘‘appropriation law’’ 

means an Act referred to in section 105 of title 1, United 

States Code, including any general or special appropriation 

Act, or any Act making supplemental, deficiency, or continuing 
329 Sec. 1026 LINE ITEM VETO ACT OF 1996 

appropriations, that has been signed into law pursuant to Article I, section 7, of the Constitution of the United States. 

(2) CALENDAR DAY.—The term ‘‘calendar day’’ means a 

standard 24-hour period beginning at midnight. 

(3) CALENDAR DAYS OF SESSION.—The term ‘‘calendar days 

of session’’ shall mean only those days on which both Houses 

of Congress are in session. 

(4) CANCEL.—The term ‘‘cancel’’ or ‘‘cancellation’’ means— 

(A) with respect to any dollar amount of discretionary 

budget authority, to rescind; 

(B) with respect to any item of new direct spending— 

(i) that is budget authority provided by law (other 

than an appropriation law), to prevent such budget 

authority from having legal force or effect; 

(ii) that is entitlement authority, to prevent the 

specific legal obligation of the United States from having legal force or effect; or 

(iii) through the food stamp program, to prevent 

the specific provision of law that results in an increase 

in budget authority or outlays for that program from 

having legal force or effect; and 

(C) with respect to a limited tax benefit, to prevent the 

specific provision of law that provides such benefit from 

having legal force or effect. 

(5) DIRECT SPENDING.—The term ‘‘direct spending’’ 

means— 

(A) budget authority provided by law (other than an 

appropriation law); 

(B) entitlement authority; and 

(C) the food stamp program. 

(6) DISAPPROVAL BILL.—The term ‘‘disapproval bill’’ means 

a bill or joint resolution which only disapproves one or more 

cancellations of dollar amounts of discretionary budget authority, items of new direct spending, or limited tax benefits in a 

special message transmitted by the President under this part 

and— 

(A) the title of which is as follows: ‘‘A bill disapproving 

the cancellations transmitted by the President on 

llll’’, the blank space being filled in with the date of 

transmission of the relevant special message and the public law number to which the message relates; 

(B) which does not have a preamble; and 

(C) which provides only the following after the enacting clause: ‘‘That Congress disapproves of cancellations 

llll’’, the blank space being filled in with a list by reference number of one or more cancellations contained in 

the President’s special message, ‘‘as transmitted by the 

President in a special message on llll’’, the blank 

space being filled in with the appropriate date, ‘‘regarding 

llll.’’, the blank space being filled in with the public 

law number to which the special message relates. 

(7) DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY.— 
Sec. 1026 LINE ITEM VETO ACT OF 1996 330 

(A) Except as provided in subparagraph (B), the term 

‘‘dollar amount of discretionary budget authority’’ means 

the entire dollar amount of budget authority— 

(i) specified in an appropriation law, or the entire 

dollar amount of budget authority required to be allocated by a specific proviso in an appropriation law for 

which a specific dollar figure was not included; 

(ii) represented separately in any table, chart, or 

explanatory text included in the statement of managers or the governing committee report accompanying 

such law; 

(iii) required to be allocated for a specific program, 

project, or activity in a law (other than an appropriation law) that mandates the expenditure of budget authority from accounts, programs, projects, or activities 

for which budget authority is provided in an appropriation law; 

(iv) represented by the product of the estimated 

procurement cost and the total quantity of items specified in an appropriation law or included in the statement of managers or the governing committee report 

accompanying such law; or 

(v) represented by the product of the estimated 

procurement cost and the total quantity of items required to be provided in a law (other than an appropriation law) that mandates the expenditure of budget 

authority from accounts, programs, projects, or activities for which budget authority is provided in an appropriation law. 

(B) The term ‘‘dollar amount of discretionary budget 

authority’’ does not include— 

(i) direct spending; 

(ii) budget authority in an appropriation law 

which funds direct spending provided for in other law; 

(iii) any existing budget authority rescinded or 

canceled in an appropriation law; or 

(iv) any restriction, condition, or limitation in an 

appropriation law or the accompanying statement of 

managers or committee reports on the expenditure of 

budget authority for an account, program, project, or 

activity, or on activities involving such expenditure. 

(8) ITEM OF NEW DIRECT SPENDING.—The term ‘‘item of 

new direct spending’’ means any specific provision of law that 

is estimated to result in an increase in budget authority or outlays for direct spending relative to the most recent levels calculated pursuant to section 257 of the Balanced Budget and 

Emergency Deficit Control Act of 1985. 

(9) LIMITED TAX BENEFIT.— 

(A) The term ‘‘limited tax benefit’’ means— 

(i) any revenue-losing provision which provides a 

Federal tax deduction, credit, exclusion, or preference 

to 100 or fewer beneficiaries under the Internal Revenue Code of 1986 in any fiscal year for which the provision is in effect; and 
331 Sec. 1026 LINE ITEM VETO ACT OF 1996 

(ii) any Federal tax provision which provides temporary or permanent transitional relief for 10 or fewer 

beneficiaries in any fiscal year from a change to the 

Internal Revenue Code of 1986. 

(B) A provision shall not be treated as described in 

subparagraph (A)(i) if the effect of that provision is that— 

(i) all persons in the same industry or engaged in 

the same type of activity receive the same treatment; 

(ii) all persons owning the same type of property, 

or issuing the same type of investment, receive the 

same treatment; or 

(iii) any difference in the treatment of persons is 

based solely on— 

(I) in the case of businesses and associations, 

the size or form of the business or association involved; 

(II) in the case of individuals, general demographic conditions, such as income, marital status, 

number of dependents, or tax return filing status; 

(III) the amount involved; or 

(IV) a generally-available election under the 

Internal Revenue Code of 1986. 

(C) A provision shall not be treated as described in 

subparagraph (A)(ii) if— 

(i) it provides for the retention of prior law with 

respect to all binding contracts or other legally enforceable obligations in existence on a date contemporaneous with congressional action specifying such 

date; or 

(ii) it is a technical correction to previously enacted legislation that is estimated to have no revenue 

effect. 

(D) For purposes of subparagraph (A)— 

(i) all businesses and associations which are related within the meaning of sections 707(b) and 

1563(a) of the Internal Revenue Code of 1986 shall be 

treated as a single beneficiary; 

(ii) all qualified plans of an employer shall be 

treated as a single beneficiary; 

(iii) all holders of the same bond issue shall be 

treated as a single beneficiary; and 

(iv) if a corporation, partnership, association, trust 

or estate is the beneficiary of a provision, the shareholders of the corporation, the partners of the partnership, the members of the association, or the beneficiaries of the trust or estate shall not also be treated 

as beneficiaries of such provision. 

(E) For purposes of this paragraph, the term ‘‘revenuelosing provision’’ means any provision which results in a 

reduction in Federal tax revenues for any one of the two 

following periods— 

(i) the first fiscal year for which the provision is 

effective; or 
Sec. 1027 LINE ITEM VETO ACT OF 1996 332 

(ii) the period of the 5 fiscal years beginning with 

the first fiscal year for which the provision is effective. 

(F) The terms used in this paragraph shall have the 

same meaning as those terms have generally in the Internal Revenue Code of 1986, unless otherwise expressly provided. 

(10) OMB.—The term ‘‘OMB’’ means the Director of the 

Office of Management and Budget. 

SEC. 1027. ø2 U.S.C. 691f¿ IDENTIFICATION OF LIMITED TAX BENEFITS. 

(a) STATEMENT BY JOINT TAX COMMITTEE.—The Joint Committee on Taxation shall review any revenue or reconciliation bill 

or joint resolution which includes any amendment to the Internal 

Revenue Code of 1986 that is being prepared for filing by a committee of conference of the two Houses, and shall identify whether 

such bill or joint resolution contains any limited tax benefits. The 

Joint Committee on Taxation shall provide to the committee of conference a statement identifying any such limited tax benefits or declaring that the bill or joint resolution does not contain any limited 

tax benefits. Any such statement shall be made available to any 

Member of Congress by the Joint Committee on Taxation immediately upon request. 

(b) STATEMENT INCLUDED IN LEGISLATION.— 

(1) Notwithstanding any other rule of the House of Representatives or any rule or precedent of the Senate, any revenue or reconciliation bill or joint resolution which includes 

any amendment to the Internal Revenue Code of 1986 reported 

by a committee of conference of the two Houses may include, 

as a separate section of such bill or joint resolution, the information contained in the statement of the Joint Committee on 

Taxation, but only in the manner set forth in paragraph (2). 

(2) The separate section permitted under paragraph (1) 

shall read as follows: ‘‘Section 1021(a)(3) of the Congressional 

Budget and Impoundment Control Act of 1974 shall llll 

apply to llllll.’’, with the blank spaces being filled in 

with— 

(A) in any case in which the Joint Committee on Taxation identifies limited tax benefits in the statement required under subsection (a), the word ‘‘only’’ in the first 

blank space and a list of all of the specific provisions of the 

bill or joint resolution identified by the Joint Committee on 

Taxation in such statement in the second blank space; or 

(B) in any case in which the Joint Committee on Taxation declares that there are no limited tax benefits in the 

statement required under subsection (a), the word ‘‘not’’ in 

the first blank space and the phrase ‘‘any provision of this 

Act’’ in the second blank space. 

(c) PRESIDENT’S AUTHORITY.—If any revenue or reconciliation 

bill or joint resolution is signed into law pursuant to Article I, section 7, of the Constitution of the United States— 

(1) with a separate section described in subsection (b)(2), 

then the President may use the authority granted in section 

1021(a)(3) only to cancel any limited tax benefit in that law, 

if any, identified in such separate section; or 
333 Sec. 1027 LINE ITEM VETO ACT OF 1996 

(2) without a separate section described in subsection 

(b)(2), then the President may use the authority granted in section 1021(a)(3) to cancel any limited tax benefit in that law 

that meets the definition in section 1026. 

(d) CONGRESSIONAL IDENTIFICATIONS OF LIMITED TAX BENE- FITS.—There shall be no judicial review of the congressional identification under subsections (a) and (b) of a limited tax benefit in a 

conference report. 

335 

Appendix B 

CONCURRENT RESOLUTIONS ON THE BUDGET 

Fiscal year Resolution No. Congress Resolution order 

FY1976 H.Con.Res. 218 94th Congress 1st Resolution 

FY1976 H.Con.Res. 466 94th Congress 2d Resolution108

FY1977 S.Con.Res. 109 94th Congress 1st Resolution 

FY1977 S.Con.Res. 139 94th Congress 2d Resolution 

FY1977 S.Con.Res. 10 95th Congress 3d Resolution 

FY1978 S.Con.Res. 19 95th Congress 1st Resolution 

FY1978 H.Con.Res. 341 95th Congress 2d Resolution 

FY1979 S.Con.Res. 80 95th Congress 1st Resolution 

FY1979 H.Con.Res. 683 95th Congress 2d Resolution 

FY1980 H.Con.Res. 107 96th Congress 1st Resolution 

FY1980 S.Con.Res. 36 96th Congress 2d Resolution 

FY1981 H.Con.Res. 307 96th Congress 1st Resolution 

FY1981 H.Con.Res. 448 96th Congress 2d Resolution 

FY1982 H.Con.Res. 115 97th Congress 1st Resolution 

FY1982 None 97th Congress 2d Resolution 

FY1983 S.Con.Res. 92 97th Congress 1st Resolution 

FY1983 None 98th Congress 2d Resolution 

FY1984 H.Con.Res. 91 98th Congress 1st Resolution 

FY1984 None 98th Congress 2d Resolution 

FY1985 H.Con.Res. 280 98th Congress 1st Resolution 

FY1985 None 98th Congress 2d Resolution 

FY1986 S.Con.Res. 32 98th Congress 1st Resolution 

FY1986 None 99th Congress 2d Resolution 

FY1987 S.Con.Res. 120 99th Congress 

FY1988 H.Con.Res. 93 100th Congress 

FY1989 H.Con.Res. 268 100th Congress 

FY1990 H.Con.Res. 106 101st Congress 

FY1991 H.Con.Res. 310 101st Congress 

FY1992 H.Con.Res. 121 102d Congress 

FY1993 H.Con.Res. 287 102d Congress 

FY1994 H.Con.Res. 64 103d Congress 

FY1995 H.Con.Res. 218 103d Congress 

FY1996 H.Con.Res. 67 104th Congress 

FY1997 H.Con.Res. 178 104th Congress 

FY1998 H.Con.Res. 84 105th Congress 

FY1999 None 105th Congress 

FY2000 H.Con.Res. 68 106th Congress 

FY2001 H.Con.Res. 290 106th Congress 

FY2002 H.Con.Res. 83 107th Congress 

FY2003 None 107th Congress 

FY2004 H.Con.Res. 95 108th Congress 

FY2005 None 108th Congress 
CONCURRENT RESOLUTIONS ON THE BUDGET 336 

CONCURRENT RESOLUTIONS ON THE BUDGET—Continued 

Fiscal year Resolution No. Congress Resolution order 

FY2006 H.Con.Res. 95 109th Congress 

FY2007 None 109th Congress 

FY2008 S.Con.Res. 21 110th Congress 

FY2009 S.Con.Res. 70 110th Congress 

FY2010 S.Con.Res. 13 111th Congress 

FY2011 None 111th Congress 

FY2012 None 112th Congress 

FY2013 None 112th Congress109

108 Automatic Second Budget Resolution: The Congressional Budget Act originally 

provided for first and second resolutions on the budget for each fiscal year. Budget 

resolutions were considered to be the second resolution if the Congress did not 

adopt the second one. Those provisions also provided an exception in the House to 

the aggregate point of order under section 311 of the Congressional Budget Act. 

See: First Concurrent Resolution on the Budget—Fiscal Year 1986, S.Con.Res. 32, 

99th Congress, 1st Session, Section 3, 99 Stat. 1941 (1985); First Concurrent Resolution on the Budget—Fiscal Year 1985, H.Con.Res. 280, 98th Congress, 2d Session, Section 4, 98 Stat. 3484 (1984); First Concurrent Resolution on the Budget— 

Fiscal Year 1984, H.Con.Res. 91, 98th Congress, 1st Session Section 5, 97 Stat. 

1501 (1983) 109The Budget Control Act of 2011 (Public Law 112–25) provided for a concurrent resolution on the budget for enforcement purposes in the Senate for Fiscal 

Years 2012 and 2013. 
337 

Appendix C 

DEEMING MEASURES FOR THE 

CONCURRENT RESOLUTION ON THE BUDGET 110

Fiscal year Congress House Senate 

FY1986 99th H.Res. 231 

FY1991 101st H.Res. 413111

FY1999 105th H.Res. 477112 S.Res. 209113

106th H.Res. 5114 S.Res. 312 

FY2003 107th H.Res. 428115

108th H.Res. 5116

FY2005 108th H.Res. 649117 P.L. 108–287118

109th H.Res. 5119

FY2007 109th H.Res. 818120 P.L. 109–234121

110th H.Res. 6122

FY2011 111th H.Res. 1493123

FY2012 112th H.Res. 287124 S.365125

FY2013 112th H.Res. 614126

H.Res. 643127

S.365125

110 House: A budget resolution ‘‘deemed’’ to be in force means a resolution that 

was not adopted by both Houses of Congress, but in one House has been treated as 

if had been passed by both Houses for enforcement purposes of the Congressional 

Budget Act. Two exceptions were for fiscal year 1999 and fiscal year 2011 when 

the deeming resolution adopted only had the effect, mainly, of providing the Appropriations Committee of the House with a section 302(a) allocation for enforcement 

purposes, but did not, in their entirely, have the nature of budget resolutions 

under the terms of section 301 of the Congressional Budget Act. 111 House: H. Res. 413 deemed H. Con. Res. 310 as passed by the House on May 

1, 1990, to be in force until the conference report on the budget was adopted (it 

was so adopted on October 9, 1990). 112 House: The initial deeming resolution was section 2 of H. Res. 477, a special 

rule for the consideration of the Military Construction Appropriations Act for 

FY1999. At the beginning of the 106th Congress, a second deeming resolution was 

included in the organizing resolution, H. Res. 5, authorizing the Chairman of the 

House Budget Committee to put enforceable allocations into the Congressional 

Record. 113Senate: Two deeming resolutions were Senate resolutions directed to that purpose. 114 House: A follow-up measure in the next session was part of the opening-day 

rules package (section 2(a) of H. Res. 5) 115 House: The initial deeming resolution was section 2 of H. Res. 428, special 

rule for the consideration of a supplemental appropriations act for FY2002 (H.R. 

4775). 116 House: A follow-up measure in the next session was part of the opening-day 

rules package (section 3(a)(4) of H. Res. 5). 117 House: The initial deeming resolution was section 2 of H. Res. 649, a special 

rule providing for the consideration of the conference report on the FY2005 budget 

resolution (S. Con. Res. 95). 118 House: The deeming resolution was section 14007 (118 Stat. 1014) of the Defense Appropriations Act for FY2005 (H.R. 4613), which became Public Law 108– 

287. 
DEEMING MEASURES 338 

119 House: A follow-up measure in the next session was part of the opening-day 

rules package (section 3(a)(4) of H. Res. 5). 120 House: The initial deeming resolution was section 2 of H. Res. 818, a special 

rule providing for the consideration of the Department of Interior Appropriations 

Act for FY2007(H.R. 5386)). 121Senate: The deeming resolution was set forth in section 7035 (120 Stat. 489– 

490) of the Emergency Supplemental Appropriations Act for Defense, the Global 

War on Terror, and Hurricane Recovery for FY2006 (H.R. 4939), which became 

Public Law 109–234. 122 House: A follow-up measure in the next session was part of the opening-day 

rules package (section 511(a)(4) of H. Res. 6). 123 House: Budget Committee Chairman John Spratt (Democrat–SC) introduced 

two House Resolutions (H. Res. 1492 and H. Res. 1493) setting forth appropriations 

levels for FY2011 and other enforcement procedures. H. Res. 1493 was deemed to 

be in force by H. Res. 1500, the rule providing for consideration of the Supplemental Appropriations Act of 2010 (it included the language ‘‘Sec. 4. House Resolution 1493 is hereby adopted’’). H. Res. 1492 was not acted upon. 124 House: The House deemed H. Con. Res. 34 to be in force by adopting H. Res. 

287 on June 1, 2011. 125S. 365 was enacted as the ‘‘Budget Control Act of 2011 (Public Law 112–25)’’ 

which established a budget resolution for the Senate for fiscal years 2012 and 

2013. 126This resolution deemed in force H. Con. Res. 112, the Concurrent Resolution 

on the Budget for Fiscal Year 2013, and amended its reconciliation instructions. 127This resolution deemed in force the allocations of H. Con. Res. 112, the Concurrent Resolution on the Budget for Fiscal Year 2013, to be in force. 
339 

Appendix D 

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 

Title I—Troubled Assets Relief Program 

* * * * * * * 

SEC. 123. CREDIT REFORM. 

(a) IN GENERAL.—Subject to subsection (b), the costs of purchases of troubled assets made under section 101(a) and guarantees of troubled assets under section 102, and any cash flows associated with the activities authorized in section 102 and subsections 

(a), (b), and (c) of section 106 shall be determined as provided 

under the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). 

(b) COSTS.—For the purposes of section 502(5) of the Federal 

Credit Reform Act of 1990 (2 U.S.C. 661a(5))— 

(1) the cost of troubled assets and guarantees of troubled 

assets shall be calculated by adjusting the discount rate in section 502(5)(E) (2 U.S.C. 661a(5)(E)) for market risks; and 

(2) the cost of a modification of a troubled asset or guarantee of a troubled asset shall be the difference between the 

current estimate consistent with paragraph (1) under the 

terms of the troubled asset or guarantee of the troubled asset 

and the current estimate consistent with paragraph (1) under 

the terms of the troubled asset or guarantee of the troubled 

asset, as modified. 

* * * * * * * 

SEC. 134. RECOUPMENT. 

Upon the expiration of the 5-year period beginning upon the 

date of the enactment of this Act, the Director of the Office of Management and Budget, in consultation with the Director of the Congressional Budget Office, shall submit a report to the Congress on 

the net amount within the Troubled Asset Relief Program under 

this Act. In any case where there is a shortfall, the President shall 

submit a legislative proposal that recoups from the financial industry an amount equal to the shortfall in order to ensure that the 

Troubled Asset Relief Program does not add to the deficit or national debt. 

* * * * * * * 

SEC. 202. REPORTS BY THE OFFICE OF MANAGEMENT AND BUDGET 

AND THE CONGRESSIONAL BUDGET OFFICE. 

(a) REPORTS BY THE OFFICE OF MANAGEMENT AND BUDGET.— 

Within 60 days of the first exercise of the authority granted in section 101(a), but in no case later than December 31, 2008, and semi-
Sec. 203 TROUBLED ASSETS RELIEF PROGRAM 340 

annually thereafter, the Office of Management and Budget shall report to the President and the Congress— 

(1) the estimate, notwithstanding section 502(5)(F) of the 

Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(F)), as of 

the first business day that is at least 30 days prior to the 

issuance of the report, of the cost of the troubled assets, and 

guarantees of the troubled assets, determined in accordance 

with section 123; 

(2) the information used to derive the estimate, including 

assets purchased or guaranteed, prices paid, revenues received, 

the impact on the deficit and debt, and a description of any 

outstanding commitments to purchase troubled assets; and 

(3) a detailed analysis of how the estimate has changed 

from the previous report. Beginning with the second report 

under subsection (a), the Office of Management and Budget 

shall explain the differences between the Congressional Budget 

Office estimates delivered in accordance with subsection (b) 

and prior Office of Management and Budget estimates. 

(b) REPORTS BY THE CONGRESSIONAL BUDGET OFFICE.—Within 

45 days of receipt by the Congress of each report from the Office 

of Management and Budget under subsection (a), the Congressional 

Budget Office shall report to the Congress the Congressional Budget Office’s assessment of the report submitted by the Office of Management and Budget, including— 

(1) the cost of the troubled assets and guarantees of the 

troubled assets, 

(2) the information and valuation methods used to calculate such cost, and 

(3) the impact on the deficit and the debt. 

(c) FINANCIAL EXPERTISE.—In carrying out the duties in this 

subsection or performing analyses of activities under this Act, the 

Director of the Congressional Budget Office may employ personnel 

and procure the services of experts and consultants. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as may be necessary to produce reports required by this section. 

SEC. 203. ø2 U.S.C. 603¿ PUBLIC ACCESS TO BUDGET DATA. 

(a) RIGHT TO COPY.—Except as provided in subsections (c), (d), 

and (e), the Director shall make all information, data, estimates, 

and statistics obtained under sections 201(d) and 201(e) available 

for public copying during normal business hours, subject to reasonable rules and regulations, and shall to the extent practicable, at 

the request of any person, furnish a copy of any such information, 

data, estimates, or statistics upon payment by such person of the 

cost of making and furnishing such copy. 

(b) INDEX.—The Director shall develop and maintain filing, 

coding, and indexing systems that identify the information, data, 

estimates, and statistics to which subsection (a) applies and shall 

make such systems available for public use during normal business 

hours. 

(c) EXCEPTIONS.—Subsection (a) shall not apply to information, 

data, estimates, and statistics— 
341 Sec. 204 TROUBLED ASSETS RELIEF PROGRAM 

(1) which are specifically exempted from disclosure by law; 

or 

(2) which the Director determines will disclose— 

(A) matters necessary to be kept secret in the interests 

of national defense or the confidential conduct of the foreign relations of the United States; 

(B) information relating to trade secrets or financial or 

commercial information pertaining specifically to a given 

person if the information has been obtained by the Government on a confidential basis, other than through an application by such person for a specific financial or other benefit, and is required to be kept secret in order to prevent 

undue injury to the competitive position of such person; or 

(C) personnel or medical data or similar data the disclosure of which would constitute a clearly unwarranted 

invasion of personal privacy; unless the portions containing such matters, information, or data have been 

excised 

(d) INFORMATION OBTAINED FOR COMMITTEES AND MEMBERS.— 

Subsection (a) shall apply to any information, data, estimates, and 

statistics obtained at the request of any committee, joint committee, or Member unless such committee, joint committee, or 

Member has instructed the Director not to make such information, 

data, estimates, or statistics available for public copying. 

(e) LEVEL OF CONFIDENTIALITY.—With respect to information, 

data, estimates, and statistics obtained under sections 201(d) and 

201(e), the Director shall maintain the same level of confidentiality 

as is required by law of the department, agency, establishment, or 

regulatory agency or commission from which it is obtained. Officers 

and employees of the Congressional Budget Office shall be subject 

to the same statutory penalties for unauthorized disclosure or use 

as officers or employees of the department, agency, establishment, 

or regulatory agency or commission from which it is obtained. 

SEC. 204. EMERGENCY TREATMENT. 

All provisions of this Act are designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress), the concurrent resolution on the budget for fiscal year 2008 and rescissions of any 

amounts provided in this Act shall not be counted for purposes of 

budget enforcement. 

343 

128The public debt limit is fixed by law at 31 U.S.C. Sec. 3101. The debt limit may be changed 

by the enactment of a bill or joint resolution. Under Rule XXVIII, when it was in force, such 

a joint resolution could be generated automatically upon adoption by Congress of a concurrent 

resolution on the budget that set a level of the public debt. Rule XXVIII was first adopted in 

the 96th Congress. It was repealed in the 107th Congress and reinstated in the 108th Congress. 

It was again repealed at the beginning of the 112th Congress. 

Appendix E 

Rule XXVIII of the House of Representatives was repealed at 

the beginning of the 112th Congress and is hence no longer in 

force. When it was in force, beginning in the 96th Congress, it provided for a Joint Resolution increasing the public debt limit to be 

sent to the Senate upon the adoption of a concurrent resolution on 

the budget. 

RULE XXVIII 128

STATUTORY LIMIT ON PUBLIC DEBT

1. Upon adoption by Congress of a concurrent resolution on the 

budget under section 301 or 304 of the Congressional Budget Act 

of 1974 that sets forth, as the appropriate level of the public debt 

for the period to which the concurrent resolution relates, an 

amount that is different from the amount of the statutory limit on 

the public debt that otherwise would be in effect for that period, 

the Clerk shall prepare an engrossment of a joint resolution increasing or decreasing, as the case may be, the statutory limit on 

the public debt in the form prescribed in clause 2. Upon engrossment of the joint resolution, the vote by which the concurrent resolution on the budget was finally agreed to in the House shall also 

be considered as a vote on passage of the joint resolution in the 

House, and the joint resolution shall be considered as passed by the 

House and duly certified and examined. The engrossed copy shall 

be signed by the Clerk and transmitted to the Senate for further 

legislative action. 

2. The matter after the resolving clause in a joint resolution 

described in clause 1 shall be as follows: ‘‘That subsection (b) of section 3101 of title 31, United States Code, is amended by striking 

out the dollar limitation contained in such subsection and inserting 

in lieu thereof ‘‘$lllll’’, with the blank being filled with a dollar limitation equal to the appropriate level of the public debt set 

forth pursuant to section 301(a)(5) of the Congressional Budget Act 

of 1974 in the relevant concurrent resolution described in clause 1. 

If an adopted concurrent resolution under clause 1 sets forth different appropriate levels of the public debt for separate periods, 

only one engrossed joint resolution shall be prepared under clause 

1; and the blank referred to in the preceding sentence shall be 

filled with the limitation that is to apply for each period. 
Clause 3 STATUTORY LIMIT ON PUBLIC DEBT 344 

3. (a) The report of the Committee on the Budget on a concurrent resolution described in clause 1 and the joint explanatory 

statement of the managers on a conference report to accompany 

such a concurrent resolution each shall contain a clear statement 

of the effect the eventual enactment of a joint resolution engrossed 

under this rule would have on the statutory limit on the public 

debt. 

(b) It shall not be in order for the House to consider a concurrent resolution described in clause 1, or a conference report 

thereon, unless the report of the Committee on the Budget or 

the joint explanatory statement of the managers complies with 

paragraph (a). 

4. Nothing in this rule shall be construed as limiting or otherwise affecting— 

(a) the power of the House or the Senate to consider and 

pass bills or joint resolutions, without regard to the procedures 

under clause 1, that would change the statutory limit on the 

public debt; or 

(b) the rights of Members, Delegates, the Resident Commissioner, or committees with respect to the introduction, consideration, and reporting of such bills or joint resolutions. 

5. In this rule the term ‘‘statutory limit on the public debt’’ 

means the maximum face amount of obligations issued under authority of chapter 31 of title 31, United States Code, and obligations guaranteed as to principal and interest by the United States 

(except such guaranteed obligations as may be held by the Secretary of the Treasury), as determined under section 3101(b) of 

such title after the application of section 3101(a) of such title, that 

may be outstanding at any one time. 
345 

129Title I has been omitted: ‘‘Title I. Recommended Levels and Amounts’’ related to the aggregate spending levels and functional categories. 

Appendix F 

THE CONCURRENT RESOLUTION ON THE BUDGET FOR

FISCAL YEAR 2013 

HOUSE CONCURRENT RESOLUTION 112129 (112TH CONGRESS)

* * * * * * * 

TITLE II—RECONCILIATION AND DIRECTIVE TO THE COMMITTEE ON THE BUDGET

Sec. 201. Reconciliation in the House of Representatives. 

Sec. 202. Directive to the Committee on the Budget of the House of Representatives 

to replace the sequester established by the Budget Control Act of 2011. 

TITLE III—RECOMMENDED LEVELS AND AMOUNTS FOR FISCAL YEARS 2030, 2040, AND

2050

Sec. 301. Policy statement on long-term budgeting. 

TITLE IV—RESERVE FUNDS

Sec. 401. Reserve fund for the repeal of the 2010 health care laws. 

Sec. 402. Deficit-neutral reserve fund for the sustainable growth rate of the Medicare program. 

Sec. 403. Deficit-neutral reserve fund for revenue measures. 

Sec. 404. Deficit-neutral reserve fund for rural counties and schools. 

Sec. 405. Deficit-neutral reserve fund for transportation. 

TITLE V—BUDGET ENFORCEMENT

Sec. 501. Limitation on advance appropriations. 

Sec. 502. Concepts and definitions. 

Sec. 503. Adjustments of aggregates and allocations for legislation. 

Sec. 504. Limitation on long-term spending. 

Sec. 505. Budgetary treatment of certain transactions. 

Sec. 506. Application and effect of changes in allocations and aggregates. 

Sec. 507. Congressional Budget Office estimates. 

Sec. 508. Budget rule relating to transfers from the general fund of the treasury 

to the highway trust fund that increase public indebtedness. 

Sec. 509. Separate allocation for overseas contingency operations/global war on terrorism. 

Sec. 510. Exercise of rulemaking powers. 

TITLE VI—POLICY

Sec. 601. Policy Statement on Medicare. 

Sec. 602. Policy Statement on Social Security. 

Sec. 603. Policy statement on deficit reduction through the cancellation of unobligated balances. 

Sec. 604. Recommendations for the elimination of waste, fraud, and abuse in Federal programs. 

* * * * * * * 
Sec. 201 H.CON.RES. 112 (112TH CONGRESS) 346 

Title II—Reconciliation and Directive to the Committee on 

the Budget 

SEC. 201. RECONCILIATION IN THE HOUSE OF REPRESENTATIVES. 

(a) SUBMISSIONS OF SPENDING REDUCTION.—Not later than 

April 27, 2012, the House committees named in subsection (b) shall 

submit recommendations to the Committee on the Budget of the 

House of Representatives. After receiving those recommendations, 

such committee shall report to the House a reconciliation bill carrying out all such recommendations without substantive revision. 

(b) INSTRUCTIONS.— 

(1) COMMITTEE ON AGRICULTURE.—The Committee on Agriculture shall submit changes in laws within its jurisdiction 

sufficient to reduce the deficit by $8,200,000,000 for the period 

of fiscal years 2012 and 2013; by $19,700,000,000 for the period of fiscal years 2012 through 2017; and by $33,200,000,000 

for the period of fiscal years 2012 through 2022. 

(2) COMMITTEE ON ENERGY AND COMMERCE.—The Committee on Energy and Commerce shall submit changes in laws 

within its jurisdiction sufficient to reduce the deficit by 

$3,750,000,000 for the period of fiscal years 2012 and 2013; by 

$28,430,000,000 for the period of fiscal years 2012 through 

2017; and by $96,760,000,000 for the period of fiscal years 

2012 through 2022. 

(3) COMMITTEE ON FINANCIAL SERVICES.—The Committee 

on Financial Services shall submit changes in laws within its 

jurisdiction sufficient to reduce the deficit by $3,000,000,000 

for the period of fiscal years 2012 and 2013; by 

$16,700,000,000 for the period of fiscal years 2012 through 

2017; and by $29,800,000,000 for the period of fiscal years 

2012 through 2022. 

(4) COMMITTEE ON THE JUDICIARY.—The Committee on the 

Judiciary shall submit changes in laws within its jurisdiction 

sufficient to reduce the deficit by $100,000,000 for the period 

of fiscal years 2012 and 2013; by $11,200,000,000 for the period of fiscal years 2012 through 2017; and by $39,700,000,000 

for the period of fiscal years 2012 through 2022. 

(5) COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM.—The Committee on Oversight and Government Reform 

shall submit changes in laws within its jurisdiction sufficient 

to reduce the deficit by $2,200,000,000 for the period of fiscal 

years 2012 and 2013; by $30,100,000,000 for the period of fiscal years 2012 through 2017; and by $78,900,000,000 for the 

period of fiscal years 2012 through 2022. 

(6) COMMITTEE ON WAYS AND MEANS.—The Committee on 

Ways and Means shall submit changes in laws within its jurisdiction sufficient to reduce the deficit by $1,200,000,000 for the 

period of fiscal years 2012 and 2013; by $23,000,000,000 for 

the period of fiscal years 2012 through 2017; and by 

$53,000,000,000 for the period of fiscal years 2012 through 

2022. 
347 Sec. 401 H.CON.RES. 112 (112TH CONGRESS) 

SEC. 202. DIRECTIVE TO THE COMMITTEE ON THE BUDGET OF THE 

HOUSE OF REPRESENTATIVES TO REPLACE THE SEQUESTER ESTABLISHED BY THE BUDGET CONTROL ACT OF 

2011. 

(a) SUBMISSION.—In the House, the Committee on the Budget 

shall report to the House a bill carrying out the directions set forth 

in subsection (b). 

(b) DIRECTIONS.—The bill referred to in subsection (a) shall include the following provisions: 

(1) Replacing the sequester established by the Budget Control Act of 2011—The language shall amend section 251A of 

the Balanced Budget and Emergency Deficit Control Act of 

1985 to replace the sequester established under that section 

consistent with this concurrent resolution. 

(2) Application of provisions—The bill referred to in subsection (a) shall include language making its application contingent upon the enactment of the reconciliation bill referred 

to in section 201. 

Title III—Recommended Levels and Amounts for Fiscal 

Years 2030, 2040, AND 2050 

SEC. 301. POLICY STATEMENT ON LONG-TERM BUDGETING. 

The following are the recommended budget levels for each of 

fiscal years 2030, 2040, and 2050 as a percent of the gross domestic 

product of the United States: 

(1) FEDERAL REVENUES.—The appropriate levels of Federal 

revenues are as follows: 

Fiscal year 2030: 19 percent. 

Fiscal year 2040: 19 percent. 

Fiscal year 2050: 19 percent. 

(2) BUDGET OUTLAYS.—The appropriate levels of total 

budget outlays are as follows: 

Fiscal year 2030: 20.25 percent. 

Fiscal year 2040: 18.75 percent. 

Fiscal year 2050: 16 percent. 

(3) DEFICITS.—The appropriate amounts of deficits are as 

follows: 

Fiscal year 2030: 1.25 percent. 

Fiscal year 2040: ¥.25 percent. 

Fiscal year 2050: ¥3 percent. 

(4) DEBT HELD BY THE PUBLIC.—The appropriate levels of 

debt held by the public are as follows: 

Fiscal year 2030: 53 percent. 

Fiscal year 2040: 38 percent. 

Fiscal year 2050: 10 percent. 

Title IV—Reserve Funds 

SEC. 401. RESERVE FUND FOR THE REPEAL OF THE 2010 HEALTH 

CARE LAWS. 

In the House, the chair of the Committee on the Budget may 

revise the allocations, aggregates, and other appropriate levels in 

this resolution for the budgetary effects of any bill or joint resolution, or amendment thereto or conference report thereon, that re-
Sec. 402 H.CON.RES. 112 (112TH CONGRESS) 348 

peals the Patient Protection and Affordable Care Act or the Health 

Care and Education Reconciliation Act of 2010. 

SEC. 402. DEFICIT-NEUTRAL RESERVE FUND FOR THE SUSTAINABLE 

GROWTH RATE OF THE MEDICARE PROGRAM. 

In the House, the chair of the Committee on the Budget may 

revise the allocations, aggregates, and other appropriate levels in 

this resolution for the budgetary effects of any bill or joint resolution, or amendment thereto or conference report thereon, that includes provisions amending or superseding the system for updating 

payments under section 1848 of the Social Security Act, if such 

measure would not increase the deficit in the period of fiscal years 

2013 through 2022. 

SEC. 403. DEFICIT-NEUTRAL RESERVE FUND FOR REVENUE MEASURES. 

In the House, the chair of the Committee on the Budget may 

revise the allocations, aggregates, and other appropriate levels in 

this resolution for the budgetary effects of any bill reported by the 

Committee on Ways and Means, or any amendment thereto or conference report thereon, that decreases revenue, but only if such 

measure would not increase the deficit over the period of fiscal 

years 2013 through 2022. 

SEC. 404. DEFICIT-NEUTRAL RESERVE FUND FOR RURAL COUNTIES 

AND SCHOOLS. 

In the House, the chair of the Committee on the Budget may 

revise the allocations, aggregates, and other appropriate levels and 

limits in this resolution for the budgetary effects of any bill or joint 

resolution, or amendment thereto or conference report thereon, 

that makes changes to the Payments in Lieu of Taxes Act of 1976 

(Public Law 94-565) or makes changes to or provides for the reauthorization of the Secure Rural Schools and Community Self Determination Act of 2000 (Public Law 106-393) by the amounts provided by that legislation for those purposes, if such legislation 

would not increase the deficit or direct spending for fiscal year 

2013, the period of fiscal years 2013 through 2017, or the period 

of fiscal years 2013 through 2022. 

SEC. 405. DEFICIT-NEUTRAL RESERVE FUND FOR 

In the House, the chair of the Committee on the Budget may 

revise the allocations, aggregates, and other appropriate levels in 

this resolution for any bill or joint resolution, or amendment thereto or conference report thereon, if such measure maintains the solvency of the Highway Trust Fund, but only if such measure would 

not increase the deficit over the period of fiscal years 2013 through 

2022. 

Title V—Budget Enforcement 

SEC. 501. LIMITATION ON ADVANCE APPROPRIATIONS. 

(a) IN GENERAL.—In the House, except as provided in subsection (b), any bill or joint resolution, or an amendment thereto 

or conference report thereon, making a general appropriation or 

continuing appropriation may not provide for advance appropriations. 
349 Sec. 503 H.CON.RES. 112 (112TH CONGRESS) 

(b) EXCEPTIONS.—An advance appropriation may be provided 

for programs, projects, activities, or accounts referred to in subsection (c)(1) or identified in the report to accompany this resolution or the joint explanatory statement of managers to accompany 

this resolution under the heading ‘Accounts Identified for Advance 

Appropriations’. 

(c) LIMITATIONS.—For fiscal year 2014, the aggregate amount 

of advance appropriation shall not exceed— 

(1) $54,462,000,000 for the following programs in the Department of Veterans Affairs— 

(A) Medical Services; 

(B) Medical Support and Compliance; and 

(C) Medical Facilities accounts of the Veterans Health 

Administration; and 

(2) $28,852,000,000 in new budget authority for all other 

programs. 

(d) DEFINITION.—In this section, the term ‘advance appropriation’ means any new discretionary budget authority provided in a 

bill or joint resolution making general appropriations or any new 

discretionary budget authority provided in a bill or joint resolution 

making continuing appropriations for fiscal year 2014. 

SEC. 502. CONCEPTS AND DEFINITIONS. 

Upon the enactment of any bill or joint resolution providing for 

a change in budgetary concepts or definitions, the chair of the Committee on the Budget may adjust any appropriate levels and allocations in this resolution accordingly. 

SEC. 503. ADJUSTMENTS OF AGGREGATES AND ALLOCATIONS FOR 

LEGISLATION. 

(a) ENFORCEMENT.—For purposes of enforcing this resolution, 

the revenue levels shall be those set forth in the March 2012 Congressional Budget Office baseline. The total amount of adjustments 

made under subsection (b) may not cause revenue levels to be 

below the levels set forth in paragraph (1)(A) of section 101 for fiscal year 2013 and for the period of fiscal years 2013 through 2022. 

(b) ADJUSTMENTS.—(1) The chair of the Committee on the 

Budget may adjust the allocations and aggregates of this concurrent resolution for— 

(A) the budgetary effects of measures extending the 

Economic Growth and Tax Relief Reconciliation Act of 

2001; 

(B) the budgetary effects of measures extending the 

Jobs and Growth Tax Relief Reconciliation Act of 2003; 

(C) the budgetary effects of measures that adjust the 

Alternative Minimum Tax exemption amounts to prevent 

a larger number of taxpayers as compared with tax year 

2008 from being subject to the Alternative Minimum Tax 

or of allowing the use of nonrefundable personal credits 

against the Alternative Minimum Tax; 

(D) the budgetary effects of extending the estate, gift, 

and generation-skipping transfer tax provisions of title III 

of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010; 
Sec. 504 H.CON.RES. 112 (112TH CONGRESS) 350 

(E) the budgetary effects of measures providing a 20 

percent deduction in income to small businesses; 

(F) the budgetary effects of measures implementing 

trade agreements; 

(G) the budgetary effects of provisions repealing the 

tax increases set forth in the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act of 2010; 

(H) the budgetary effects of provisions reforming the 

Patient Protection and Affordable Care Act and the Health 

Care and Education Affordability Reconciliation Act of 

2010; and 

(I) the budgetary effects of measures reforming the tax 

code and lowering tax rates. 

(2) A measure does not qualify for adjustments under 

paragraph (1)(H) if it— 

(A) increases the deficit over the period of fiscal years 

2013 through 2022; or 

(B) increases revenues over the period of fiscal years 

2013 through 2022, other than by— 

(i) repealing or modifying the individual mandate 

(codified as section 5000A of the Internal Revenue 

Code of 1986); or 

(ii) modifying the subsidies to purchase health insurance (codified as section 36B of the Internal Revenue Code of 1986). 

(c) OTHER ADJUSTMENTS.—If a committee (other than the Committee on Appropriations) reports a bill or joint resolution, or an 

amendment thereto or a conference report thereon, providing for a 

decrease in direct spending (budget authority and outlays flowing 

therefrom) for any fiscal year and also provides for an authorization of appropriations for the same purpose, upon the enactment of 

such measure, the chair of the Committee on the Budget may decrease the allocation to such committee and increase the allocation 

of discretionary spending (budget authority and outlays flowing 

therefrom) to the Committee on Appropriations for fiscal year 2013 

by an amount equal to the new budget authority (and outlays flowing therefrom) provided for in a bill or joint resolution making appropriations for the same purpose. 

(d) DETERMINATIONS.—For the purpose of enforcing this concurrent resolution on the budget in the House, the allocations and 

aggregate levels of new budget authority, outlays, direct spending, 

new entitlement authority, revenues, deficits, and surpluses for fiscal year 2013 and the period of fiscal years 2013 through fiscal 

year 2022 shall be determined on the basis of estimates made by 

the chair of the Committee on the Budget and such chair may adjust the applicable levels of this resolution. 

SEC. 504. LIMITATION ON LONG-TERM SPENDING. 

(a) IN GENERAL.—In the House, it shall not be in order to consider a bill or joint resolution reported by a committee (other than 

the Committee on Appropriations), or an amendment thereto or a 

conference report thereon, if the provisions of such measure have 
351 Sec. 507 H.CON.RES. 112 (112TH CONGRESS) 

the net effect of increasing direct spending in excess of 

$5,000,000,000 for any period described in subsection (b). 

(b) TIME PERIODS.—The applicable periods for purposes of this 

section are any of the first four consecutive ten fiscal-year periods 

beginning with fiscal year 2023. 

SEC. 505. BUDGETARY TREATMENT OF CERTAIN TRANSACTIONS. 

(a) IN GENERAL.—Notwithstanding section 302(a)(1) of the 

Congressional Budget Act of 1974, section 13301 of the Budget Enforcement Act of 1990, and section 4001 of the Omnibus Budget 

Reconciliation Act of 1989, the joint explanatory statement accompanying the conference report on any concurrent resolution on the 

budget shall include in its allocation under section 302(a) of the 

Congressional Budget Act of 1974 to the Committee on Appropriations amounts for the discretionary administrative expenses of the 

Social Security Administration and the United States Postal Service. 

(b) SPECIAL RULE.—For purposes of applying sections 302(f) 

and 311 of the Congressional Budget Act of 1974, estimates of the 

level of total new budget authority and total outlays provided by 

a measure shall include any off-budget discretionary amounts. 

(c) ADJUSTMENTS.—The chair of the Committee on the Budget 

may adjust allocations and aggregates for legislation reported by 

the Committee on Oversight and Government Reform that reforms 

the Federal retirement system, but does not cause a net increase 

in the deficit for fiscal year 2013 and the period of fiscal years 2013 

to 2022. 

SEC. 506. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 

AND AGGREGATES. 

(a) APPLICATION.—Any adjustments of allocations and aggregates made pursuant to this resolution shall— 

(1) apply while that measure is under consideration; 

(2) take effect upon the enactment of that measure; and 

(3) be published in the Congressional Record as soon as 

practicable. 

(b) EFFECT OF CHANGED ALLOCATIONS AND AGGREGATES.—Revised allocations and aggregates resulting from these adjustments 

shall be considered for the purposes of the Congressional Budget 

Act of 1974 as allocations and aggregates included in this resolution. 

(c) EXEMPTIONS.—Any legislation for which the chair of the 

Committee on the Budget makes adjustments in the allocations or 

aggregates of this concurrent resolution shall not be subject to the 

points of order set forth in clause 10 of rule XXI of the Rules of 

the House of Representatives or section 504. 

SEC. 507. CONGRESSIONAL BUDGET OFFICE ESTIMATES. 

(a) FAIR VALUE ESTIMATES.— 

(1) REQUEST FOR SUPPLEMENTAL ESTIMATES.—Upon the request of the chair or ranking member of the Committee on the 

Budget, any estimate prepared for a measure under the terms 

of title V of the Congressional Budget Act of 1974, ‘credit reform’, as a supplement to such estimate of the Congressional 

Budget Office shall, to the extent practicable, also provide an 

estimate of the current actual or estimated market values rep-
Sec. 508 H.CON.RES. 112 (112TH CONGRESS) 352 

resenting the ‘fair value’ of assets and liabilities affected by 

such measure. 

(2) ENFORCEMENT.—If the Congressional Budget Office 

provides an estimate pursuant to subsection (a), the chair of 

the Committee on the Budget may use such estimate to determine compliance with the Congressional Budget Act of 1974 

and other budgetary enforcement controls. 

(b) BUDGETARY EFFECTS OF THE NATIONAL FLOOD INSURANCE

PROGRAM.—The Congressional Budget Office shall estimate the 

change in net income to the National Flood Insurance Program by 

this Act if such income is included in a reconciliation bill provided 

for in section 201, as if such income were deposited in the general 

fund of the Treasury. 

SEC. 508. BUDGET RULE RELATING TO TRANSFERS FROM THE GENERAL FUND OF THE TREASURY TO THE HIGHWAY TRUST 

FUND THAT INCREASE PUBLIC INDEBTEDNESS. 

For purposes of the Congressional Budget Act of 1974, the Balanced Budget and Emergency Deficit Control Act of 1985, or the 

Rules of the House of Representatives, a bill or joint resolution, or 

an amendment thereto or conference report thereon, or any Act 

that transfers funds from the general fund of the Treasury to the 

Highway Trust Fund shall be counted as new budget authority and 

outlays equal to the amount of the transfer in the fiscal year the 

transfer occurs. 

SEC. 509. SEPARATE ALLOCATION FOR OVERSEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM. 

(a) ALLOCATION.—In the House, there shall be a separate allocation to the Committee on Appropriations for overseas contingency 

operations and the global war on terrorism. For purposes of enforcing such separate allocation under section 302(f) of the Congressional Budget Act of 1974, the ‘first fiscal year’ and the ‘total of fiscal years’ shall be deemed to refer to fiscal year 2013. Such separate allocation shall be the exclusive allocation for overseas contingency operations and the global war on terrorism under section 

302(a) of such Act. Section 302(c) of such Act does not apply to such 

separate allocation. The Committee on Appropriations may provide 

suballocations of such separate allocation under section 302(b) of 

such Act. Spending that counts toward the allocation established 

by this section shall be designated pursuant to section 

251(b)(2)(A)(ii) of the Balanced Budget and Emergency Deficit Control Act of 1985. 

(b) ADJUSTMENT.—In the House, for purposes of subsection (a) 

for fiscal year 2013, no adjustment shall be made under section 

314(a) of the Congressional Budget Act of 1974 if any adjustment 

would be made under section 251(b)(2)(A)(ii) of the Balanced Budget and Emergency Deficit Control Act of 1985. 

SEC. 510. EXERCISE OF RULEMAKING POWERS. 

(a) IN GENERAL.—The House adopts the provisions of this 

title— 

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

Representatives and as such they shall be considered as part 

of the rules of the House of Representatives, and these rules 
353 Sec. 602 H.CON.RES. 112 (112TH CONGRESS) 

shall supersede other rules only to the extent that they are inconsistent with other such rules; and 

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

House of Representatives to change those rules at any time, in 

the same manner, and to the same extent as in the case of any 

other rule of the House of Representatives. 

(b) LIMITATION ON APPLICATION.—The following provisions of 

H. Res. 5 (112th Congress) shall no longer have force or effect: 

(1) Section 3(e) relating to advance appropriations. 

(2) Section 3(f) relating to the treatment of off-budget administrative expenses. 

Title VI—Policy 

SEC. 601. POLICY STATEMENT ON MEDICARE. 

(a) FINDINGS.—The House finds the following: 

(1) More than 50 million Americans depend on Medicare 

for their health security. 

(2) The Medicare Trustees Report has repeatedly recommended that Medicare’s long-term financial challenges be 

addressed soon. Each year without reform, the financial condition of Medicare becomes more precarious and the threat to 

those in and near retirement becomes more pronounced. According to the Congressional Budget Office— 

(A) the Hospital Insurance Trust Fund will be exhausted in 2022 and unable to pay scheduled benefits; and 

(B) Medicare spending is growing faster than the economy and Medicare outlays are currently rising at a rate of 

6.3 percent per year, and under the Congressional Budget 

Office’s alternative fiscal scenario, direct spending on 

Medicare is projected to reach 7 percent of GDP by 2035 

and 14 percent of GDP by 2085. 

(3) Failing to address this problem will leave millions of 

American seniors without adequate health security and younger generations burdened with enormous debt to pay for spending levels that cannot be sustained. 

(b) POLICY ON MEDICARE REFORM.—It is the policy of this resolution to protect those in and near retirement from any disruptions 

to their Medicare benefits and offer future beneficiaries the same 

health care options available to Members of Congress. 

(c) ASSUMPTIONS.—This resolution assumes reform of the Medicare program such that: 

(1) Current Medicare benefits are preserved for those in 

and near retirement, without changes. 

(2) For future generations, when they reach eligibility, 

Medicare is reformed to provide a premium support payment 

and a selection of guaranteed health coverage options from 

which recipients can choose a plan that best suits their needs. 

(3) Medicare will provide additional assistance for lowerincome beneficiaries and those with greater health risks. 

(4) Medicare spending is put on a sustainable path and the 

Medicare program becomes solvent over the long-term. 

SEC. 602. POLICY STATEMENT ON SOCIAL SECURITY. 

(a) FINDINGS.—The House finds the following: 
Sec. 602 H.CON.RES. 112 (112TH CONGRESS) 354 

(1) More than 55 million retirees, individuals with disabilities, and survivors depend on Social Security. Since enactment, Social Security has served as a vital leg on the ‘threelegged stool’ of retirement security, which includes employer 

provided pensions as well as personal savings. 

(2) The Social Security Trustees report has repeatedly recommended that Social Security’s long-term financial challenges 

be addressed soon. Each year without reform, the financial 

condition of Social Security becomes more precarious and the 

threat to seniors and those receiving Social Security disability 

benefits becomes more pronounced: 

(A) In 2016, according to the Congressional Budget Office, the Federal Disability Insurance Trust Fund will be 

exhausted and will be unable to pay scheduled benefits. 

(B) In 2036, according to the Social Security Trustees 

Report the combined Federal Old-Age and Survivors Insurance Trust Fund and Federal Disability Insurance Trust 

Fund will be exhausted, and will be unable to pay scheduled benefits. 

(C) With the exhaustion of the trust funds in 2036, 

benefits will be cut 23 percent across the board, devastating those currently in or near retirement and those 

who rely on Social Security the most. 

(3) The current recession has exacerbated the crisis to Social Security. The Congressional Budget Office continues to 

project permanent cash deficits. 

(4) Lower-income Americans rely on Social Security for a 

larger proportion of their retirement income. Therefore, reforms should take into consideration the need to protect lowerincome Americans’ retirement security. 

(5) Americans deserve action by their elected officials on 

Social Security reform. It is critical that the Congress and the 

administration work together in a bipartisan fashion to address the looming insolvency of Social Security. In this spirit, 

this resolution creates a bipartisan opportunity to find solutions by requiring policymakers to ensure that Social Security 

remains a critical part fo the safety net. 

(b) POLICY ON SOCIAL SECURITY.—It is the policy of this resolution that Congress should work on a bipartisan basis to make Social Security permanently solvent. This resolution assumes reform 

of a current law trigger, such that— 

(1)(A) if in any year the Board of Trustees of the Federal 

Old-Age and Survivors Insurance Trust Fund and the Federal 

Disability Insurance Trust Fund in its annual Trustees’ Report 

determines that the 75-year actuarial balance of the Social Security Trust Funds is in deficit, and the annual balance of the 

Social Security Trust Funds in the 75th year is in deficit, the 

Board of Trustees should, not later than September 30 of the 

same calendar year, submit to the President recommendations 

for statutory reforms necessary to achieve a positive 75-year 

actuarial balance and a positive annual balance in the 75th 

year; and 
355 Sec. 603 H.CON.RES. 112 (112TH CONGRESS) 

(B) such recommendations provided to the President 

should be agreed upon by both Public Trustees of the 

Board of Trustees; 

(2)(A) not later than December 1 of the same calendar year 

in which the Board of Trustees submits its recommendations, 

the President shall promptly submit implementing legislation 

to both Houses of Congress, including recommendations necessary to achieve a positive 75-year actuarial balance and a 

positive annual balance in the 75th year; and 

(B) the Majority Leader of the Senate and the Majority Leader of the House should introduce such legislation 

upon receipt; 

(3) within 60 days of the President submitting legislation, 

the committees of jurisdiction to which the legislation has been 

referred should report such legislation, which should be considered by the full House or Senate under expedited procedures; 

and 

(4) legislation submitted by the President should— 

(A) protect those in and near retirement; 

(B) preserve the safety net for those who rely on Social 

Security, including survivors and those with disabilities; 

(C) improve fairness for participants; and 

(D) reduce the burden on, and provide certainty for, 

future generations. 

SEC. 603. POLICY STATEMENT ON DEFICIT REDUCTION THROUGH THE 

CANCELLATION OF UNOBLIGATED BALANCES. 

(a) FINDINGS.—The House finds the following: 

(1) According to the Office of Management and Budget, 

Federal agencies will hold $698 billion in unobligated balances 

at the close of fiscal year 2013. 

(2) These funds represent direct and discretionary spending made available by Congress that remain available for expenditure beyond the fiscal year for which they are provided. 

(3) In some cases, agencies are granted funding and it remains available for obligation indefinitely. 

(4) The Congressional Budget and Impoundment Control 

Act of 1974 requires the Office of Management and Budget to 

make funds available to agencies for obligation and prohibits 

the Administration from withholding or cancelling unobligated 

funds unless approved by an act of Congress. 

(5) Greater congressional oversight is required to review 

and identify potential savings from unneeded balances of 

funds. 

(b) POLICY ON DEFICIT REDUCTION THROUGH THE CANCELLATION OF UNOBLIGATED BALANCES.—Congressional committees shall 

through their oversight activities identify and achieve savings 

through the cancellation or rescission of unobligated balances that 

neither abrogate contractual obligations of the Federal Government 

nor reduce or disrupt Federal commitments under programs such 

as Social Security, veterans’ affairs, national security, and Treasury authority to finance the national debt. 

(c) DEFICIT REDUCTION.—Congress, with the assistance of the 

Government Accountability Office, the Inspectors General, and 
Sec. 604 H.CON.RES. 112 (112TH CONGRESS) 356 

other appropriate agencies should make it a high priority to review 

unobligated balances and identify savings for deficit reduction. 

SEC. 604. RECOMMENDATIONS FOR THE ELIMINATION OF WASTE, 

FRAUD, AND ABUSE IN FEDERAL PROGRAMS. 

(a) FINDINGS.—The House finds the following: 

(1) The Government Accountability Office is required by 

law to identify examples of waste, duplication, and overlap in 

Federal programs, and has so identified dozens of such examples. 

(2) In testimony before the Committee on Oversight and 

Government Reform, the Comptroller General has stated that 

addressing the identified waste, duplication, and overlap in 

Federal programs ‘could potentially save tens of billions of dollars’. 

(3) The Rules of the House of Representatives require each 

standing committee to hold at least one hearing every four 

months on waste, fraud, abuse, or mismanagement in Government programs. 

(4) The findings resulting from congressional oversight of 

Federal Government programs should result in programmatic 

changes in both authorizing statutes and program funding levels. 

(b) POLICY ON DEFICIT REDUCTION THROUGH THE REDUCTION

OF UNNECESSARY AND WASTEFUL SPENDING.—Each authorizing 

committee annually shall include in its Views and Estimates letter 

required under section 301(d) of the Congressional Budget Act of 

1974 recommendations to the Committee on the Budget of programs within the jurisdiction of such committee whose funding 

should be reduced or eliminated. Such recommendations shall be 

made publicly available. 
357 

130Revenue Bills: The insertion of this clause was another of the devices sanctioned by the 

Framers to preserve and enforce the separation of powers. It applies, in the context of the permissibility of Senate amendments to a House-passed bill, to all bills for collecting revenue—revenue decreasing as well as revenue increasing—rather than simply to just those bills that increase revenue. 131 Appropriations Act: The Article of the Constitution extends to Appropriation Acts, which 

must also originate in the House of Representatives. Any bill providing for an appropriation of 

funds must begin its consideration in the House or it will be ‘‘blue slipped’’ and returned to the 

Senate without House consideration. 132Kinds of Taxes Permitted: By the terms of the Constitution, the power of Congress to levy 

taxes is subject to but one exception and two qualifications. Articles exported from any State 

may not be taxed at all. Direct taxes must be levied by the rule of apportionment and indirect 

taxes by the rule of uniformity. The Court has emphasized the sweeping character of this power 

by saying from time to time that it ‘‘reaches every subject,’’ that it is ‘‘exhaustive’’ or that it 

‘‘embraces every conceivable power of taxation.’’ Despite these generalizations, the power has 

been at times substantially curtailed by judicial decision with respect to the subject matter of 

taxation, the manner in which taxes are imposed, and the objects for which they may be levied. 133Purposes Served by the Grant: This clause serves a two-fold purpose: it is the direct source 

of the most important powers that the Federal Government exercises in peacetime, and, except 

for the due process and equal protection clauses of the Fourteenth Amendment, it is the most 

important limitation imposed by the Constitution on the exercise of state power. The latter, restrictive operation of the clause was long the more important one from the point of view of the 

constitutional lawyer. Of the approximately 1400 cases that reached the Supreme Court under 

the clause prior to 1900, the overwhelming proportion stemmed from state legislation. The result was that, generally, the guiding lines in construction of the clause were initially laid down 

in the context of curbing state power rather than in that of its operation as a source of national 

power. The consequence of this historical progression was that the word ‘‘commerce’’ came to 

dominate the clause while the word ‘‘regulate’’ remained in the background. The so-called ‘‘constitutional revolution’’ of the 1930s, however, brought the latter word to its present prominence. 134 Appropriations: This clause is a limitation upon the power of the Executive Department 

and does not restrict Congress in appropriating moneys in the Treasury. That body may recognize and pay a claim of an equitable, moral, or honorary nature. When it directs a specific sum 

to be paid to a certain person, neither the Secretary of the Treasury nor any court has discretion 

to determine whether the person is entitled to receive it. In making appropriations to pay claims 

arising out of the Civil War, Congress could, the Court held, lawfully provide that certain persons, i.e., those who had aided the Rebellion, should not be paid out of the funds made available 

by the general appropriation, but that such persons should seek relief from Congress. The Court 

has also recognized that Congress has a wide discretion with regard to the extent to which it 

shall prescribe details of expenditures for which it appropriates funds and has approved the frequent practice of making general appropriations of large amounts to be allotted and expended 

as directed by designated government agencies. Citing as an example that act of June 17, 1902, 

where all moneys received from the sale and disposal of public lands in a large number of States 

and territories were set aside as a special fund to be expended under the direction of the Secretary of the Interior upon such projects as he determined to be practicable and advisable for 

the reclamation of arid and semi-arid lands within those States and territories, the Court declared: ‘‘The constitutionality of this delegation of authority has never been seriously questioned.’’ 

Appendix G 

THE CONSTITUTION OF THE UNITED STATES

Article I, Section 7, First Clause 130

All Bills for raising Revenue shall originate in the House of 

Representatives; but the Senate may propose or concur with 

Amendments as on other Bills.131

Article I, Section 8, First Clause 132

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the 

common Defense and general Welfare of the United States; but all 

Duties, Imposts and Excises shall be uniform throughout the 

United States; 

Article I, Section 8, Second Clause 133

To borrow Money on the credit of the United States; Article I, 

Section 9, Seventh Clause.134
THE CONSTITUTION OF THE UNITED STATES 358 

135 History and Purpose of the Amendment: The ratification of this Amendment was the direct 

consequence of the Court’s decision in 1895 in Pollock v. Farmers’ Loan & Trust Co., whereby 

the attempt of Congress the previous year to tax incomes uniformly throughout the United 

States was held by a divided court to be unconstitutional. A tax on incomes derived from property, the Court declared, was a ‘‘direct tax’’ which Congress under the terms of Article I, Sec. 

2, and Sec. 9, could impose only by the rule of apportionment according to population, although 

scarcely fifteen years prior the Justices had unanimously sustained the collection of a similar 

tax during the Civil War, the only other occasion preceding the Sixteenth Amendment in which 

Congress had ventured to utilize this method of raising revenue 

During the interim between the Pollock decision in 1895 and the ratification of the Sixteenth 

Amendment in 1913, the Court gave evidence of a greater awareness of the dangerous consequences to national solvency which that holding threatened, and partially circumvented the 

threat, either by taking refuge in redefinitions of ‘‘direct tax’’ or, and more especially, by emphasizing, virtually to the exclusion of the former, the history of excise taxation. 136Passed by Congress July 2, 1909. Ratified February 3, 1913, Amendment XVI modified Article I, section 9, of the Constitution. 

No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement 

and Account of the Receipts and Expenditures of all public Money 

shall be published from time to time. 

Amendment XVI 135

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment 

among the several States, and without regard to any census or 

enumeration.136
359 

137Subtitle A of Title VIII of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 is commonly known as the ‘‘Medicare Trigger.’’ On July 24, 2008, the House 

adopted H. Res. 1368 (110th Congress) which suspended its application for the remainder of the 

110th Congress. On January 6, 2009, the House adopted H. Res. 5 (111th Congress) which suspended its application for the entirety of the 111th Congress. 

Appendix H 

MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND

MODERNIZATION ACT OF 2003 

Title VIII—Cost Containment 

SUBTITLE A—COST CONTAINMENT 137

SEC. 801. INCLUSION IN ANNUAL REPORT OF MEDICARE TRUSTEES OF 

INFORMATION ON STATUS OF MEDICARE TRUST FUNDS. 

(a) DETERMINATIONS OF EXCESS GENERAL REVENUE MEDICARE

FUNDING.— 

(1) IN GENERAL.—The Board of Trustees of each medicare 

trust fund shall include in the annual reports submitted under 

subsection (b)(2) of sections 1817 and 1841 of the Social Security Act (42 U.S.C. 1395i and 1395t)— 

(A) the information described in subsection (b); and 

(B) a determination as to whether there is projected to 

be excess general revenue medicare funding (as defined in 

subsection (c)) for the fiscal year in which the report is 

submitted or for any of the succeeding 6 fiscal years. 

(2) MEDICARE FUNDING WARNING.—For purposes of section 

1105(h) of title 31, United States Code, and this subtitle, an affirmative determination under paragraph (1)(B) in 2 consecutive annual reports shall be treated as a medicare funding 

warning in the year in which the second such report is made. 

(3) 7–FISCAL YEAR REPORTING PERIOD.—For purposes of 

this subtitle, the term ‘‘7-fiscal-year reporting period’’ means, 

with respect to a year in which an annual report described in 

paragraph (1) is made, the period of 7 consecutive fiscal years 

beginning with the fiscal year in which the report is submitted. 

(b) INFORMATION.—The information described in this subsection for an annual report in a year is as follows: 

(1) PROJECTIONS OF GROWTH OF GENERAL REVENUE SPENDING.—A statement of the general revenue medicare funding as 

a percentage of the total medicare outlays for each of the following: 

(A) Each fiscal year within the 7-fiscal-year reporting 

period. 

(B) Previous fiscal years and as of 10, 50, and 75 years 

after such year. 
Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 360 

(2) COMPARISON WITH OTHER GROWTH TRENDS.—A comparison of the trend of such percentages with the annual growth 

rate in the following: 

(A) The gross domestic product. 

(B) Private health costs. 

(C) National health expenditures. 

(D) Other appropriate measures. 

(3) PART D SPENDING.—Expenditures, including trends in 

expenditures, under part D of title XVIII of the Social Security 

Act, as added by section 101. 

(4) COMBINED MEDICARE TRUST FUND ANALYSIS.—A financial analysis of the combined medicare trust funds if general 

revenue medicare funding were limited to the percentage specified in subsection (c)(1)(B) of total medicare outlays. 

(c) DEFINITIONS.—For purposes of this section: 

(1) EXCESS GENERAL REVENUE MEDICARE FUNDING.—The 

term ‘‘excess general revenue medicare funding’’ means, with 

respect to a fiscal year, that— 

(A) general revenue medicare funding (as defined in 

paragraph (2)), expressed as a percentage of total medicare 

outlays (as defined in paragraph (4)) for the fiscal year; exceeds 

(B) 45 percent. 

(2) GENERAL REVENUE MEDICARE FUNDING.—The term 

‘‘general revenue medicare funding’’ means for a year— 

(A) the total medicare outlays (as defined in paragraph (4)) for the year; minus 

(B) the dedicated medicare financing sources (as defined in paragraph (3)) for the year. 

(3) DEDICATED MEDICARE FINANCING SOURCES.—The term 

‘‘dedicated medicare financing sources’’ means the following: 

(A) HOSPITAL INSURANCE TAX.—Amounts appropriated 

to the Hospital Insurance Trust Fund under the third sentence of section 1817(a) of the Social Security Act (42 

U.S.C. 1395i(a)) and amounts transferred to such Trust 

Fund under section 7(c)(2) of the Railroad Retirement Act 

of 1974 (45 U.S.C. 231f(c)(2)). 

(B) TAXATION OF CERTAIN OASDI BENEFITS.—Amounts 

appropriated to the Hospital Insurance Trust Fund under 

section 121(e)(1)(B) of the Social Security Amendments of 

1983 (Public Law 98-21), as inserted by section 13215(c) of 

the Omnibus Budget Reconciliation Act of 1993 (Public 

Law 103-66). 

(C) STATE TRANSFERS.—The State share of amounts 

paid to the Federal Government by a State under section 

1843 of the Social Security Act (42 U.S.C. 1395v) or pursuant to section 1935(c) of such Act. 

(D) PREMIUMS.—The following premiums: 

(i) PART A.—Premiums paid by non-Federal 

sources under sections 1818 and section 1818A (42 

U.S.C. 1395i-2 and 1395i-2a) of such Act. 

(ii) PART B.—Premiums paid by non-Federal 

sources under section 1839 of such Act (42 U.S.C. 
361 Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 

1395r), including any adjustments in premiums under 

such section. 

(iii) PART D.—Monthly beneficiary premiums paid 

under part D of title XVIII of such Act, as added by 

section 101, and MA monthly prescription drug beneficiary premiums paid under part C of such title insofar as they are attributable to basic prescription drug 

coverage. 

Premiums under clauses (ii) and (iii) shall be determined 

without regard to any reduction in such premiums attributable 

to a beneficiary rebate under section 1854(b)(1)(C) of such title, 

as amended by section 222(b)(1), and premiums under clause 

(iii) are deemed to include any amounts paid under section 

1860D-13(b) of such title, as added by section 101. 

(E) GIFTS.—Amounts received by the medicare trust 

funds under section 201(i) of the Social Security Act (42 

U.S.C. 401(i)). 

(4) TOTAL MEDICARE OUTLAYS.—The term ‘‘total medicare 

outlays’’ means total outlays from the medicare trust funds and 

shall— 

(A) include payments made to plans under part C of 

title XVIII of the Social Security Act that are attributable 

to any rebates under section 1854(b)(1)(C) of such Act (42 

U.S.C. 1395w-24(b)(1)(C)), as amended by section 222(b)(1); 

(B) include administrative expenditures made in carrying out title XVIII of such Act and Federal outlays under 

section 1935(b) of such Act, as added by section 103(a)(2); 

and 

(C) offset outlays by the amount of fraud and abuse 

collections insofar as they are applied or deposited into a 

medicare trust fund. 

(5) MEDICARE TRUST FUND.—The term ‘‘medicare trust 

fund’’ means— 

(A) the Federal Hospital Insurance Trust Fund established under section 1817 of the Social Security Act (42 

U.S.C. 1395i); and 

(B) the Federal Supplementary Medical Insurance 

Trust Fund established under section 1841 of such Act (42 

U.S.C. 1395t), including the Medicare Prescription Drug 

Account under such Trust Fund. 

(d) CONFORMING AMENDMENTS.— (1) FEDERAL HOSPITAL INSURANCE TRUST FUND.—Section 

1817(b)(2) (42 U.S.C. 1395i(b)(2)) is amended by adding at the 

end the following: ‘‘Each report provided under paragraph (2) 

beginning with the report in 2005 shall include the information 

specified in section 801(a) of the Medicare Prescription Drug, 

Improvement, and Modernization Act of 2003.’’. 

(2) FEDERAL SUPPLEMENTARY MEDICAL INSURANCE TRUST

FUND.—Section 1841(b)(2) (42 U.S.C. 1395t(b)(2)) is amended 

by adding at the end the following: ‘‘Each report provided 

under paragraph (2) beginning with the report in 2005 shall 

include the information specified in section 801(a) of the Medicare Prescription Drug, Improvement, and Modernization Act 

of 2003.’’. 
Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 362 

(e) NOTICE OF MEDICARE FUNDING WARNING.—Whenever any 

report described in subsection (a) contains a determination that for 

any fiscal year within the 7-fiscal-year reporting period there will 

be excess general revenue medicare funding, Congress and the 

President should address the matter under existing rules and procedures. 

SEC. 802. PRESIDENTIAL SUBMISSION OF LEGISLATION. 

(a) IN GENERAL.—Section 1105 of title 31, United States Code, 

is amended by adding at the end the following new subsection: 

‘‘(h)(1) If there is a medicare funding warning under section 

801(a)(2) of the Medicare Prescription Drug, Improvement, and 

Modernization Act of 2003 made in a year, the President shall submit to Congress, within the 15-day period beginning on the date of 

the budget submission to Congress under subsection (a) for the succeeding year, proposed legislation to respond to such warning. 

‘‘(2) Paragraph (1) does not apply if, during the year in 

which the warning is made, legislation is enacted which eliminates excess general revenue medicare funding (as defined in 

section 801(c) of the Medicare Prescription Drug, Improvement, 

and Modernization Act of 2003) for the 7-fiscal-year reporting 

period, as certified by the Board of Trustees of each medicare 

trust fund (as defined in section 801(c)(5) of such Act) not later 

than 30 days after the date of the enactment of such legislation.’’. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that legislation submitted pursuant to section 1105(h) of title 31, United 

States Code, in a year should be designed to eliminate excess general revenue medicare funding (as defined in section 801(c)) for the 

7-fiscal-year period that begins in such year. 

SEC. 803. PROCEDURES IN THE HOUSE OF REPRESENTATIVES. 

(a) INTRODUCTION AND REFERRAL OF PRESIDENT’S LEGISLATIVE

PROPOSAL.— 

(1) INTRODUCTION.—In the case of a legislative proposal 

submitted by the President pursuant to section 1105(h) of title 

31, United States Code, within the 15-day period specified in 

paragraph (1) of such section, the Majority Leader of the House 

of Representatives (or his designee) and the Minority Leader of 

the House of Representatives (or his designee) shall introduce 

such proposal (by request), the title of which is as follows: ‘‘A 

bill to respond to a medicare funding warning.’’ Such bill shall 

be introduced within 3 legislative days after Congress receives 

such proposal. 

(2) REFERRAL.—Any legislation introduced pursuant to 

paragraph (1) shall be referred to the appropriate committees 

of the House of Representatives. 

(b) DIRECTION TO THE APPROPRIATE HOUSE COMMITTEES.— 

(1) IN GENERAL.—In the House, in any year during which 

the President is required to submit proposed legislation to Congress under section 1105(h) of title 31, United States Code, the 

appropriate committees shall report medicare funding legislation by not later than June 30 of such year. 

(2) MEDICARE FUNDING LEGISLATION.—For purposes of this 

section, the term ‘‘medicare funding legislation’’ means— 
363 Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 

(A) legislation introduced pursuant to subsection 

(a)(1), but only if the legislative proposal upon which the 

legislation is based was submitted within the 15-day period referred to in such subsection; or 

(B) any bill the title of which is as follows: ‘‘A bill to 

respond to a medicare funding warning.’’. 

(3) CERTIFICATION.—With respect to any medicare funding 

legislation or any amendment to such legislation to respond to 

a medicare funding warning, the chairman of the Committee 

on the Budget of the House shall certify— 

(A) whether or not such legislation eliminates excess 

general revenue medicare funding (as defined in section 

801(c)) for each fiscal year in the 7-fiscal-year reporting period; and 

(B) with respect to such an amendment, whether the 

legislation, as amended, would eliminate excess general 

revenue medicare funding (as defined in section 801(c)) for 

each fiscal year in such 7-fiscal-year reporting period. 

(c) FALLBACK PROCEDURE FOR FLOOR CONSIDERATION IF THE

HOUSE FAILS TO VOTE ON FINAL PASSAGE BY JULY 30.— 

(1) After July 30 of any year during which the President 

is required to submit proposed legislation to Congress under 

section 1105(h) of title 31, United States Code, unless the 

House of Representatives has voted on final passage of any 

medicare funding legislation for which there is an affirmative 

certification under subsection (b)(3)(A), then, after the expiration of not less than 30 calendar days (and concurrently 5 legislative days), it is in order to move to discharge any committee 

to which medicare funding legislation which has such a certification and which has been referred to such committee for 30 

calendar days from further consideration of the legislation. 

(2) A motion to discharge may be made only by an individual favoring the legislation, may be made only if supported 

by one-fifth of the total membership of the House (a quorum 

being present), and is highly privileged in the House. Debate 

thereon shall be limited to not more than one hour, the time 

to be divided in the House equally between those favoring and 

those opposing the motion. An amendment to the motion is not 

in order, and it is not in order to move to reconsider the vote 

by which the motion is agreed to or disagreed to. 

(3) Only one motion to discharge a particular committee 

may be adopted under this subsection in any session of a Congress. 

(4) Notwithstanding paragraph (1), it shall not be in order 

to move to discharge a committee from further consideration of 

medicare funding legislation pursuant to this subsection during a session of a Congress if, during the previous session of 

the Congress, the House passed medicare funding legislation 

for which there is an affirmative certification under subsection 

(b)(3)(A). 

(d) FLOOR CONSIDERATION IN THE HOUSE OF DISCHARGED LEGISLATION.— 

(1) In the House, not later than 3 legislative days after any 

committee has been discharged from further consideration of 
Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 364 

legislation under subsection (c), the Speaker shall resolve the 

House into the Committee of the Whole for consideration of the 

legislation. 

(2) The first reading of the legislation shall be dispensed 

with. All points of order against consideration of the legislation 

are waived. General debate shall be confined to the legislation 

and shall not exceed five hours, which shall be divided equally 

between those favoring and those opposing the legislation. 

After general debate the legislation shall be considered for 

amendment under the five-minute rule. During consideration 

of the legislation, no amendments shall be in order in the 

House or in the Committee of the Whole except those for which 

there has been an affirmative certification under subsection 

(b)(3)(B). All points of order against consideration of any such 

amendment in the Committee of the Whole are waived. The 

legislation, together with any amendments which shall be in 

order, shall be considered as read. During the consideration of 

the bill for amendment, the Chairman of the Committee of the 

Whole may accord priority in recognition on the basis of whether the Member offering an amendment has caused it to be 

printed in the portion of the Congressional Record designated 

for that purpose in clause 8 of Rule XVIII of the Rules of the 

House of Representatives. Debate on any amendment shall not 

exceed one hour, which shall be divided equally between those 

favoring and those opposing the amendment, and no pro forma 

amendments shall be offered during the debate. The total time 

for debate on all amendments shall not exceed 10 hours. At the 

conclusion of consideration of the legislation for amendment, 

the Committee shall rise and report the legislation to the 

House with such amendments as may have been adopted. The 

previous question shall be considered as ordered on the legislation and amendments thereto to final passage without intervening motion except one motion to recommit with or without 

instructions. If the Committee of the Whole rises and reports 

that it has come to no resolution on the bill, then on the next 

legislative day the House shall, immediately after the third 

daily order of business under clause 1 of Rule XIV of the Rules 

of the House of Representatives, resolve into the Committee of 

the Whole for further consideration of the bill. 

(3) All appeals from the decisions of the Chair relating to 

the application of the Rules of the House of Representatives to 

the procedure relating to any such legislation shall be decided 

without debate. 

(4) Except to the extent specifically provided in the preceding provisions of this subsection, consideration of any such 

legislation and amendments thereto (or any conference report 

thereon) shall be governed by the Rules of the House of Representatives applicable to other bills and resolutions, amendments, and conference reports in similar circumstances. 

(e) LEGISLATIVE DAY DEFINED.—As used in this section, the 

term ‘‘legislative day’’ means a day on which the House of Representatives is in session. 
365 Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 

(f) RESTRICTION ON WAIVER.—In the House, the provisions of 

this section may be waived only by a rule or order proposing only 

to waive such provisions. 

(g) RULEMAKING POWER.—The provisions of this section are enacted by the Congress— 

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

Representatives and, as such, shall be considered as part of the 

rules of that House and shall supersede other rules only to the 

extent that they are inconsistent therewith; and 

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

House to change the rules (so far as they relate to the procedures of that House) at any time, in the same manner, and to 

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

SEC. 804. PROCEDURES IN THE SENATE. 

(a) INTRODUCTION AND REFERRAL OF PRESIDENT’S LEGISLATIVE

PROPOSAL.— 

(1) INTRODUCTION.—In the case of a legislative proposal 

submitted by the President pursuant to section 1105(h) of title 

31, United States Code, within the 15-day period specified in 

paragraph (1) of such section, the Majority Leader and Minority Leader of the Senate (or their designees) shall introduce 

such proposal (by request), the title of which is as follows: ‘‘A 

bill to respond to a medicare funding warning.’’ Such bill shall 

be introduced within 3 days of session after Congress receives 

such proposal. 

(2) REFERRAL.—Any legislation introduced pursuant to 

paragraph (1) shall be referred to the Committee on Finance. 

(b) MEDICARE FUNDING LEGISLATION.—For purposes of this 

section, the term ‘‘medicare funding legislation’’ means— 

(1) legislation introduced pursuant to subsection (a)(1), but 

only if the legislative proposal upon which the legislation is 

based was submitted within the 15-day period referred to in 

such subsection; or 

(2) any bill the title of which is as follows: ‘‘A bill to respond to a medicare funding warning.’’. 

(c) QUALIFICATION FOR SPECIAL PROCEDURES.— 

(1) IN GENERAL.—The special procedures set forth in subsections (d) and (e) shall apply to medicare funding legislation, 

as described in subsection (b), only if the legislation— 

(A) is medicare funding legislation that is passed by 

the House of Representatives; or 

(B) contains matter within the jurisdiction of the Committee on Finance in the Senate. 

(2) FAILURE TO QUALIFY FOR SPECIAL PROCEDURES.—If the 

medicare funding legislation does not satisfy paragraph (1), 

then the legislation shall be considered under the ordinary procedures of the Standing Rules of the Senate. 

(d) DISCHARGE.— 

(1) IN GENERAL.—If the Committee on Finance has not reported medicare funding legislation described in subsection 

(c)(1) by June 30 of a year in which the President is required 

to submit medicare funding legislation to Congress under section 1105(h) of title 31, United States Code, then any Senator 
Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 366 

may move to discharge the Committee of any single medicare 

funding legislation measure. Only one such motion shall be in 

order in any session of Congress. 

(2) DEBATE LIMITS.—Debate in the Senate on any such motion to discharge, and all appeals in connection therewith, shall 

be limited to not more than 2 hours. The time shall be equally 

divided between, and controlled by, the maker of the motion 

and the Majority Leader, or their designees, except that in the 

event the Majority Leader is in favor of such motion, the time 

in opposition thereto shall be controlled by the Minority Leader 

or the Minority Leader’s designee. A point of order under this 

subsection may be made at any time. It is not in order to move 

to proceed to another measure or matter while such motion (or 

the motion to reconsider such motion) is pending. 

(3) AMENDMENTS.—No amendment to the motion to discharge shall be in order. 

(4) EXCEPTION IF CERTIFIED LEGISLATION ENACTED.—Notwithstanding paragraph (1), it shall not be in order to discharge the Committee from further consideration of medicare 

funding legislation pursuant to this subsection during a session 

of a Congress if the chairman of the Committee on the Budget 

of the Senate certifies that medicare funding legislation has 

been enacted that eliminates excess general revenue medicare 

funding (as defined in section 801(c)) for each fiscal year in the 

7-fiscal-year reporting period. 

(e) CONSIDERATION.—After the date on which the Committee 

on Finance has reported medicare funding legislation described in 

subsection (c)(1), or has been discharged (under subsection (d)) 

from further consideration of, such legislation, it is in order (even 

though a previous motion to the same effect has been disagreed to) 

for any Member of the Senate to move to proceed to the consideration of such legislation. 

(f) RULES OF THE SENATE.—This section is enacted by the Senate— 

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

and as such it is deemed a part of the rules of the Senate, but 

applicable only with respect to the procedure to be followed in 

the Senate in the case of a bill described in this paragraph, 

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

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

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

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

same extent as in the case of any other rule of the Senate. 

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