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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4593 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4593

                    Entitlement Control Act of 1994.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 16, 1994

 Mr. Stenholm (for himself, Mr. Penny, Mr. Deal, Mr. LaRocco, and Mr. 
Orton) introduced the following bill; which was referred jointly to the 
             Committees on Government Operations and Rules

_______________________________________________________________________

                                 A BILL

 
                    Entitlement Control Act of 1994.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Entitlement 
Control Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Definitions and treatments.
Sec. 4. Establishment of direct spending targets.
Sec. 5. Special direct spending message by President.
Sec. 6. Congressional action required.
Sec. 7. Spin-off law.
Sec. 8. Targeted sequestration.
Sec. 9. Comprehensive sequestration.
Sec. 10. Exempt programs and activities.
Sec. 11. General and special sequestration rules.
Sec. 12. Estimating assumptions, reports, and orders.
Sec. 13. The current policy baseline.
Sec. 14. Relationship to pay-as-you-go.
Sec. 15. Judicial review.
Sec. 16. Application.
Sec. 17. Effective date.

SEC. 2. PURPOSE.

    The purpose of this Act is to create a mechanism to control 
spending on mandatory programs and to increase accountability for 
mandatory spending.

SEC. 3. DEFINITIONS AND TREATMENTS.

    As used in this Act:
            (1) The terms ``budget authority'', ``new budget 
        authority'', ``entitlement authority'', ``outlays'', and 
        ``deficit'' have the meanings given to such terms in section 3 
        of the Congressional Budget and Impoundment Control Act of 
        1974.
            (2) The term ``account'' means an item for which there is a 
        designated budget account identification code number in the 
        President's budget.
            (3) 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.
            (4) The term ``budget-year session'' means any session of 
        Congress that starts in the calendar year in which that budget 
        year starts.
            (5) The term ``CBO'' means the Director of the 
        Congressional Budget Office.
            (6) The term ``current policy baseline'' means the 
        projection (described in section 13) of current-year levels of 
        new budget authority and outlays into the budget year and the 
        outyears.
            (7) The term ``current year'' means the fiscal year that 
        immediately precedes a budget year.
            (8) The term ``deposit insurance'' refers to the expenses 
        of the Federal Deposit Insurance Corporation and the funds it 
        incorporates, the Resolution Trust Corporation, the National 
        Credit Union Administration and the funds it incorporates, the 
        Office of Thrift Supervision; the Comptroller of the Currency 
        Assessment Funds, the RTC Office of the Inspector General, and 
        the deposit insurance activities of the Federal Reserve.
            (9) The term ``direct spending'' means--
                    (A) budget authority provided by law other than 
                appropriation Acts;
                    (B) entitlement authority; and
                    (C) the food stamp program.
        If a law other than an appropriation Act alters the level of 
        discretionary appropriations, that effect shall be treated as 
        direct spending. If an Appropriations Act alters the level of 
        direct spending, that effect shall be treated as discretionary 
        spending.
            (10) The term ``legislative day'' means, with respect to 
        either House of Congress, any day of session.
            (11) The term ``OMB'' means the Director of the Office of 
        Management and Budget.
            (12) The term ``outyear'' means any of the 4 fiscal years 
        that follow a budget year.
            (13) The terms ``sequester'' and ``sequestration'' mean the 
        cancellation under section 8 or 9 of direct spending authority.

SEC. 4. ESTABLISHMENT OF DIRECT SPENDING TARGETS.

    (a) Coverage.--The direct spending targets shall apply to all 
direct spending programs within the Federal budget except for net 
interest and deposit insurance.
    (b) Initial Report.--Not later than 30 days after the date of 
enactment of this Act, OMB shall submit a report to Congress setting 
forth the direct spending targets for each of fiscal years 1995 through 
2000 in accordance with this section.
    (c) Determining Direct Spending Limits.--In calculating the direct 
spending targets, OMB shall--
            (1) calculate the projected level of direct spending 
        outlays for fiscal year 1995;
            (2) calculate the increase in the direct spending targets 
        for each subsequent fiscal year through fiscal year 2000 to 
        allow growth in direct spending outlays to reflect--
                    (A) changes in the Consumer Price Index;
                    (B) changes in the number of beneficiaries under 
                direct spending programs for which the number of 
                beneficiaries is a variable in determining costs; and
                    (C) an additional growth allowance of--
                            (i) 1 percent in 1996;
                            (ii) 1 percent in 1997; and
                            (iii) 1 percent in 1998;
    (d) Adjustment for Health Care Reform.--OMB shall calculate 
adjustments to the direct spending targets to reflect any increase in 
direct spending resulting from health care reform legislation, enacted 
into law by December 31, 1994, if such legislation would not increase 
the total deficit for the period of fiscal years 1995 through 1999.
    (e) Annual Adjustments.--When the President submits a budget under 
section 1105(a) of title 31, United States Code, for a fiscal year, OMB 
shall calculate adjustments to the direct spending targets to reflect 
the following:
            (1) Changes in inflation projections from the Director's 
        initial report under section 4(b).
            (2) Changes in projections of the number of beneficiaries 
        from the Director's initial report under section 4(b).
            (3) The costs of direct spending legislation to the extent 
        that it is offset by revenue increases or designated as an 
        emergency by Congress and the President under section 252 of 
        the Balanced Budget and Emergency Deficit Control Act of 1985.
            (4) Legislation reducing direct spending to the extent that 
        it offsets the deficit impact of a tax cut under section 252 of 
        the Balanced Budget and Emergency Deficit Control Act of 1985.

SEC. 5. SPECIAL DIRECT SPENDING MESSAGE BY PRESIDENT.

    (a) Special Message.--If the OMB sequestration preview report 
submitted under section 12(e) indicates that direct spending for the 
budget year or any outyear will exceed the applicable direct spending 
target, the budget submitted under section 1105(a) of title 31, United 
States Code, shall include a special direct spending message that 
includes proposed legislative changes to offset the net deficit impact 
of the excess identified by that OMB sequestration preview report for 
each such year through any combination of:
            (1) Reductions in direct spending outlays.
            (2) Increases in the direct spending targets, if the 
        President has submitted a written determination that, because 
        of economic or programmatic reasons, only some or none of the 
        excess should be offset.
    (b) Introduction of President's Package.--Within 10 days after the 
President submitted a special direct spending message, the text 
referred to in subsection (a) shall be introduced as a concurrent 
resolution in the House of Representatives by the chairman of its 
Committee on the Budget and in the Senate by the chairman of its 
Committee on the Budget. If the chairman fails to do so, after the 10th 
day the resolution may be introduced by any Member of the House of 
Representatives or the Senate, as the case may be. A concurrent 
resolution introduced under this subsection shall be referred to the 
Committee on the Budget of the House of Representatives or the Senate, 
as the case may be.

SEC. 6. CONGRESSIONAL ACTION REQUIRED.

    (a) In General.--The requirements of this section shall be in 
effect for any year in which the OMB sequestration preview report 
submitted under section 12(e) indicates that direct spending for the 
budget year or any outyear will exceed the applicable direct spending 
target.
    (b) Requirements for Special Budget Resolution in the House.--The 
Committee on the Budget in the House shall report not later than March 
15 a concurrent resolution, either as a separate section of the 
concurrent resolution on the budget reported pursuant to section 301 of 
the Congressional Budget Act of 1974 or as a separate resolution, that 
includes reconciliation instructions instructing the appropriate 
committees of the House and Senate to report changes in laws within 
their jurisdiction to offset any excess in direct spending identified 
in the OMB sequestration preview report submitted under section 12(e) 
as follows:
            (1) Reductions in direct spending programs.
            (2) Increases in the direct spending targets, except that 
        any increase in those targets may not be greater than the 
        increase included in the special reconciliation message 
        submitted by the President.
    (c) Procedure If House Budget Committee Fails To Report Required 
Resolution.--
            (1) Automatic discharge of house budget committee.--In the 
        event that the House Committee on the Budget fails to report a 
        resolution meeting the requirements of subsection (b), the 
        committee shall be automatically discharged from further 
        consideration of the concurrent resolution reflecting the 
        President's recommendations introduced pursuant to section 
        5(b), and the concurrent resolution shall be placed on the 
        appropriate calendar.
            (2) Consideration by house of discharged resolution.--Ten 
        days after the House Committee on the Budget has been 
        discharged under paragraph (1), any member may move that the 
        House proceed to consider the resolution. Such motion shall be 
        highly privileged and not debatable. It shall not be in order 
        to consider any amendment to the resolution except amendments 
        which are germane and which do not change the net deficit 
        impact of the resolution. Consideration of such resolution 
        shall be pursuant to the procedures set forth in section 305 of 
        the Congressional Budget Act of 1974 and subsection (d).
    (d) Consideration by the House of Representatives.--(1) It shall 
not be in order in the House of Representatives to consider a 
concurrent resolution on the budget unless that concurrent resolution 
fully addresses the entirety of any excess of the direct spending 
targets as identified in the OMB sequestration preview report submitted 
under section 12(e) through reconciliation instructions requiring 
spending reductions, or changes in the direct spending targets.
    (2) If the concurrent resolution on the budget proposes to 
eliminate or offset less than the entire excess for budget year and any 
subsequent fiscal years, then the Committee on the Budget shall report 
a separate resolution directing the Committee on Government Operations 
to report legislation increasing the direct spending targets for each 
applicable year by the full amount of the excess not offset or 
eliminated. It shall not be in order to consider any concurrent 
resolution on the budget that does not offset the full amount of the 
excess until the House of Representatives has agreed to the resolution 
directing the increase in the direct spending targets.
    (e) Transmittal to Senate.--If a concurrent resolution passes the 
House pursuant to subsection (d), the Clerk of the House of 
Representatives shall cause the resolution to be engrossed, certified, 
and transmitted to the Senate within one calendar day of the day on 
which the resolution is passed. The resolution shall be referred to the 
Senate Committee on the Budget.
    (f) Requirements for Special Budget Resolution in the Senate.--The 
Committee on the Budget in the Senate shall report not later than April 
1 a concurrent resolution, either as a separate section of a budget 
resolution reported pursuant to section 301 of the Congressional Budget 
Act of 1974 or as a separate resolution, that shall include 
reconciliation instructions instructing the appropriate committees of 
the House and Senate to report changes in laws within their 
jurisdiction to offset any excess through any combination of:
            (1) Reductions in direct spending programs.
            (2) Increases in the direct spending targets, except that 
        any increase in those targets may not be greater than the 
        increase included in the special reconciliation message 
        submitted by the President.
    (g) Procedure If Senate Budget Committee Fails To Report Required 
Resolution.--
            (1) Automatic discharge of senate budget committee.--In the 
        event that the Senate Committee on the Budget fails to report a 
        resolution meeting the requirements of subsection (f), the 
        committee shall be automatically discharged from further 
        consideration of the concurrent resolution reflecting the 
        President's recommendations introduced pursuant to section 
        5(b), and the concurrent resolution shall be placed on the 
        appropriate calendar.
            (2) Consideration by senate of discharged resolution.--Ten 
        days after the Senate Committee on the Budget has been 
        discharged under paragraph (1), any member may move that the 
        Senate proceed to consider the resolution. Such motion shall be 
        privileged and not debatable. Consideration of such resolution 
        shall be pursuant to the procedures set forth in section 305 of 
        the Congressional Budget Act of 1974 and subsection (h).
    (h) Consideration by Senate.--(1) It shall not be in order in the 
Senate to consider a concurrent resolution on the budget unless that 
concurrent resolution fully addresses the entirety of any excess of the 
direct spending targets as identified in the OMB sequestration report 
submitted under section 12(e) through reconciliation instructions 
requiring direct spending reductions, or changes in the direct spending 
targets.
    (2) If the concurrent resolution on the budget proposes to 
eliminate or offset less than the entire overage of a budget year, then 
the Committee on the Budget shall report a resolution increasing the 
direct spending target by the full amount of the overage not 
eliminated. It shall not be in order to consider any concurrent 
resolution on the budget that does not offset the entire amount of the 
overage until the Senate has agreed to the resolution directing the 
increase in the direct spending targets.
    (i) Conference Reports Must Fully Address Overage.--It shall not be 
in order in the House of Representatives or the Senate to consider a 
conference report on a concurrent resolution on the budget unless that 
conference report fully addresses the entirety of any excess identified 
by the OMB sequestration preview report submitted pursuant to section 
12(e) through reconciliation instructions requiring direct spending 
reductions, or changes in the direct spending targets.
    (j) Waivers.--The points of order established by subsection (d)(1), 
(h)(1), or (i) may be waived or suspended--
            (1) in the House of Representatives only by a resolution 
        devoted solely to the subject of waiving that point of order, 
        or
            (2) in the Senate only by an affirmative vote of three-
        fifths of the Members duly chosen and sworn.

SEC. 7. SPIN-OFF LEGISLATION.

    (a) Allocations of Direct Spending.--The joint explanatory 
statement accompanying a conference report on a concurrent resolution 
on the budget shall include an estimated allocation based upon such 
concurrent resolution as recommended in such conference report, of the 
appropriate levels of direct spending budget authority and outlays for 
each major functional category.
    (b) Introduction of Spin-Off Legislation.--On the third legislative 
day after adoption of a concurrent resolution on the budget, the 
chairman of the Committee on the Budget of the House of Representatives 
or the Senate, as the case may be, shall introduce legislation 
specifying the budget year amount of direct spending allowed by budget 
functional categories, based on the allocations set forth in the joint 
explanatory statement accompanying the conference report on such 
concurrent resolution. The total amount of direct spending under such 
legislation may not exceed the target set forth for that fiscal year by 
section 4 unless Congress has adopted a resolution directing an 
increase in the direct spending targets. Legislation introduced under 
this subsection shall be referred to the Committee on the Budget.
    (c) Procedure in House of Representatives.--
            (1) Automatic discharge of house budget committee.--In the 
        event that the House Budget Committee fails to report 
        legislation introduced pursuant to subsection (b) within 7 
        legislative days of the introduction of the bill in the House, 
        the committee shall be automatically discharged from further 
        consideration of such legislation.
            (2) Consideration by house of spin-off legislation.--Three 
        legislative days after the House Budget Committee has reported 
        spin-off legislation described in subsection (b) or has been 
        discharged under paragraph (1), it shall be in order to move 
        that the House proceed to consider the legislation. Such motion 
        shall be highly privileged and not debatable.
            (3) Debate in house.--General debate on any spin-off 
        legislation in the House of Representatives shall be limited to 
        not more than 5 hours, which shall be divided equally between 
        the majority and minority parties. A motion to further limit 
        debate shall not be in order. It shall not be in order to 
        consider any amendments which would cause the total amount of 
        direct spending under the spin-off legislation to exceed the 
        target set forth for the fiscal year under section 4.
            (4) House consideration of conference report.--Debate in 
        the House of Representatives on the conference report on spin-
        off legislation shall be limited to not more than 1 hour, which 
        shall be divided equally between the majority and minority 
        parties. 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.
    (d) Procedure in the Senate.--
            (1) Automatic discharge of senate budget committee.--In the 
        event that the Senate Budget Committee fails to report 
        legislation described in subsection (b), the committee shall be 
        automatically discharged from further consideration of such 
        legislation.
            (2) Consideration by senate of spin-off legislation.--Three 
        days after the Senate Budget Committee has reported spin-off 
        legislation described in subsection (b) or has been discharged 
        under paragraph (1), it shall be in order to move that the 
        Senate proceed to consider the legislation. Such motion shall 
        be privileged and not debatable.
            (3) Debate in senate.--Debate in the Senate on any spin-off 
        legislation, and all amendments thereto and debatable motions 
        and appeals in connection therewith, shall be limited to not 
        more than 25 hours. The time shall be equally divided between, 
        and controlled by, the majority leader and the minority leader 
        or their designees. It shall not be in order to consider any 
        amendments which would cause the total amount of direct 
        spending under the spin-off legislation to exceed the target 
        set forth for the fiscal year under section 4 or includes 
        provisions on a subject other than the levels of budget year 
        amount or direct spending allowed by budget functional 
        categories.
            (4) A motion to further limit debate is not debatable.--A 
        motion to recommit (except a motion to recommit with 
        instruction 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.
            (5) Motion to proceed to conference in senate.--A motion to 
        proceed to the consideration of the conference report on any 
        spin-off legislation may be made even though a previous motion 
        to the same effect has been disagreed to.
            (6) Senate consideration of conference report.--Debate in 
        the Senate on a conference report on spin-off legislation shall 
        be limited to not more than 5 hours, which shall be divided 
        equally between the majority leader and minority leader or 
        their designees. A motion to further limit debate is not 
        debatable. Debate on any debatable motion or appeal related to 
        the conference report (or a message between House) shall be 
        limited to 1 hour, to be equally divided between, and 
        controlled by, the mover and the manager of the conference 
        report.
            (7) Request for new conference.--Should the conference 
        report be defeated, debate on any request for a new conference 
        and the appointment of conferees shall be limited to 1 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 one-half hour, 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.

SEC. 8. TARGETED SEQUESTRATION.

    (a) Application.--This section shall apply for any budget year only 
if a spin-off law as described in section 7 is in effect for that year 
on the date of the final sequestration report described in section 12.
    (b) Sequestration in Each Functional Category.--(1) The purpose of 
this subsection is to ensure that total direct spending for each 
functional category is no more than allowed for the budget year.
    (2) The amount to be sequestered for the budget year from direct 
spending programs in each functional category is the amount by which 
direct spending during the budget year results in a greater amount of 
direct spending than allowed in that functional category in the spin-
off law.
    (c) Sequestration.--Within 15 days after Congress adjourns to end a 
session, there shall be a sequestration to reduce the amount of direct 
spending in the current policy baseline in any functional category by 
the amount specified in subsection (b)(2). The amount required to be 
sequestered from direct spending in a functional category shall be 
achieved by reducing each non-exempt direct spending account (or 
activity within an account) within that functional category by the 
uniform percentage necessary to achieve that amount.

SEC. 9. COMPREHENSIVE SEQUESTRATION.

    (a) Application.--This section shall apply for any budget year 
unless a spin-off law as described in section 7 is in effect for that 
year on the date of the final sequestration report described in section 
12.
    (b) Sequestration Based on Budget-Year Shortfall.--The amount to be 
sequestered for the budget year is the amount (if any) by which direct 
spending exceeds the cap for that year under section 4.
    (c) Sequestration.--Within 15 days after Congress adjourns to end a 
session, there shall be a sequestration to reduce the amount of direct 
spending in the current policy baseline by the amounts specified in 
subsection (b). The amount required to be sequestered shall be achieved 
by reducing each direct spending account (or activity within an 
account) by the uniform percentage necessary to achieve that amount.

SEC. 10. EXEMPT PROGRAMS AND ACTIVITIES.

    The following budget accounts, activities within accounts, or 
income shall be exempt from sequestration--
            (1) net interest;
            (2) deposit insurance and pension benefit guarantees;
            (3) all payments to trust funds from excise taxes or other 
        receipts or collections properly creditable to those trust 
        funds;
            (4) offsetting receipts and collections;
            (5) all payments from one Federal direct spending budget 
        account to another Federal budget account; all 
        intragovernmental funds including those from which funding is 
        derived primarily from other Government accounts;
            (6) expenses to the extent they result from private 
        donations, bequests, or voluntary contributions to the 
        Government;
            (7) nonbudgetary activities, including but not limited to--
                    (A) credit liquidating and financing accounts;
                    (B) the Pension Benefit Guarantee Corporation Trust 
                Funds;
                    (C) the Thrift Savings Fund;
                    (D) the Federal Reserve System; and
                    (E) appropriations for the District of Columbia to 
                the extent they are appropriations of locally raised 
                funds;
            (8) payments resulting from Government insurance, 
        Government guarantees, or any other form of contingent 
        liability, to the extent those payments result from contractual 
        or other legally binding commitments of the Government at the 
        time of any sequestration;
            (9) the following accounts, which largely fulfill 
        requirements of the Constitution or otherwise make payments to 
        which the Government is committed:
                    Administration of Territories, Northern Mariana 
                Islands Covenant grants (14-0412-0-1-806);
                    Bureau of Indian Affairs, miscellaneous payments to 
                Indians (14-2303-0-1-452);
                    Bureau of Indian Affairs, miscellaneous trust 
                funds, tribal trust funds (14-9973-0-7-999);
                    Claims, defense;
                    Claims, judgments, and relief act (20-1895-0-1-
                806);
                    Compact of Free Association, economic assistance 
                pursuant to Public Law 99-658 (14-0415-0-1-806);
                    Compensation of the President (11-0001-0-1-802);
                    Customs Service, miscellaneous permanent 
                appropriations (20-9992-0-2-852);
                    Eastern Indian land claims settlement fund (14-
                2202-0-1-806)
                    Farm Credit System Financial Assistance 
                Corporation, interest payments (20-1850-0-1-351);
                    Internal Revenue collections of Puerto Rico (20-
                5737-0-2-852);
                    Panama Canal Commission, operating expenses and 
                capital outlay (95-5190-0-2-403);
                    Payments of Vietnam and USS Pueblo prisoner-of-war 
                claims (15-0104-0-1-153);
                    Payments to copyright owners (03-5175-0-2-376);
                    Payments to the United States territories, fiscal 
                assistance (14-0418-0-1-801);
                    Salaries of Article III judges;
                    Soldier's and Airmen's Home, payment of claims (84-
                8930-0-7-705);
                    Washington Metropolitan Area Transit Authority, 
                interest payments (46-0300-0-1-401);
            (10) the following noncredit special, revolving, or trust-
        revolving funds:
                    Coinage profit fund (20-5811-0-2-803);
                    Exchange Stabilization Fund (20-4444-0-3-155);
                    Foreign Military Sales trust fund (11-82232-0-7-
                155);
            (11)(A) any amount paid as regular unemployment 
        compensation by a State from its account in the Unemployment 
        Trust Fund (established by section 904(a) of the Social 
        Security Act);
            (B) any advance made to a State from the Federal 
        unemployment account (established by section 904(g) of such 
        Act) under title XII of such Act and any advance appropriated 
        to the Federal unemployment account pursuant to section 1203 of 
        such Act;
            (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;
            (12) the earned income tax credit (payments to individuals 
        pursuant to section 32 of the Internal Revenue Code of 1986); 
        and
            (13) the uranium enrichment program.

SEC. 11. GENERAL AND SPECIAL SEQUESTRATION RULES.

    (a) Permanent Sequestration of Direct Spending.--
            (1) The purpose of any direct spending sequestration under 
        this Act is to ensure deficit reduction in the budget year and 
        all subsequent fiscal years, so that the budget-year direct 
        spending cap in section 4 is not exceeded.
            (2) Obligations in sequestered direct spending accounts 
        shall be reduced in the fiscal year in which a sequestration 
        occurs and in all succeeding fiscal years. Notwithstanding any 
        other provision of this section, after the first direct 
        spending sequestration, any later sequestration shall reduce 
        direct spending by an amount in addition to, rather than in 
        lieu of, the reduction in direct spending in place under the 
        existing sequestration or sequestrations.
    (b) Uniform Percentages.--
            (1) In calculating the uniform percentage applicable to the 
        sequestration of all direct spending programs or activities 
        under section 9, or the uniform percentage applicable to the 
        sequestration of nonexempt direct spending programs or 
        activities within a functional category under section 8, the 
        sequestrable base for direct spending programs and activities 
        is the total budget-year level of outlays for those programs or 
        activities in the current policy baseline minus--
                    (A) those budget-year outlays resulting from 
                obligations incurred in the current or prior fiscal 
                years, and
                    (B) those budget-year outlays resulting from 
                exemptions under section 10.
            (2) For any direct spending program in which--
                    (A) outlays pay for entitlement benefits,
                    (B) a budget-year sequestration takes effect after 
                the 1st day of the budget year, and
                    (C) that delay reduces the amount of entitlement 
                authority that is subject to sequestration in the 
                budget year,
        the uniform percentage otherwise applicable to the 
        sequestration of that program in the budget year shall be 
        increased as necessary to achieve the same budget-year outlay 
        reduction in that program as would have been achieved had there 
        been no delay.
            (3) If the uniform percentage otherwise applicable to the 
        budget-year sequestration of a program or activity is increased 
        under paragraph (2), then it shall revert to the uniform 
        percentage calculated under paragraph (1) when the budget year 
        is completed.
    (c) General Rules for Sequestration.--
            (1) Indefinite authority.--Except as otherwise provided, 
        sequestration in accounts for which obligations are indefinite 
        shall be taken in a manner to ensure that obligations in the 
        fiscal year of a sequestration and succeeding fiscal years are 
        reduced, from the level that would actually have occurred, by 
        the applicable sequestration percentage or percentages.
            (2) Cancellation of budgetary resources.--Budgetary 
        resources sequestered from any account other than an 
        entitlement trust, special, or revolving fund account shall 
        revert to the Treasury and be permanently canceled or repealed.
            (3) Indexed benefit payments.--If, under any entitlement 
        program--
                    (A) benefit payments are made to persons or 
                governments more frequently than once a year, and
                    (B) the amount of entitlement authority is 
                periodically adjusted under existing law to reflect 
                changes in a price index,
        then for the first fiscal year to which a sequestration order 
        applies, the benefit reductions in that program accomplished by 
        the order shall take effect starting with the payment made at 
        the beginning of January or 7 weeks after the order is issued, 
        whichever is later. For the purposes of this subsection, 
        Veterans Compensation shall be considered a program that meets 
        the conditions of the preceding sentence.
            (4) Programs, projects, or activities.--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).
            (5) Implementing regulations.--Administrative regulations 
        or similar actions implementing the sequestration of a program 
        or activity shall be made within 120 days of the effective date 
        of the sequestration of that program or activity.
            (6) Distribution formulas.--To the extent that distribution 
        or allocation formulas differ at different levels of budgetary 
        resources within an account, program, project, or activity, a 
        sequestration shall be interpreted as producing a lower total 
        appropriation, with that lower appropriation being obligated as 
        though it had been the pre-sequestration appropriation and no 
        sequestration had occurred.
            (7) Contingent fees.--In any account for which fees charged 
        to the public are legally determined by the level of 
        appropriations, fees shall be charged on the basis of the 
        presequestration level of appropriations.
    (d) Non-JOBS Portion of AFDC.--Any sequestration order shall 
accomplish the full amount of any required reduction in payments for 
the non-jobs portion of the aid to families with dependant children 
program under the Social Security Act by reducing the Federal 
reimbursement percentage (for the fiscal year involved) by multiplying 
that reimbursement percentage, on a State-by-State basis, by the 
uniform percentage applicable to the sequestration of nonexempt direct 
spending programs or activities.
    (e) JOBS Portion of AFDC.--
            (1) Full amount of sequestration required.--Any 
        sequestration order shall accomplish the full amount of any 
        required reduction of the job opportunities and basic skills 
        training program under section 402(a)(19), and part F of title 
        VI, of the Social Security Act, in the manner specified in this 
        subsection. Such an order may not reduce any Federal matching 
        rate pursuant to section 403(l) of the Social Security Act.
            (2) New allotment formula.--
                    (A) General rule.--Notwithstanding section 403(k) 
                of the Social Security Act, each State's percentage 
                share of the amount available after sequestration for 
                direct spending pursuant to section 403(l) of such Act 
                shall be equal to that percentage of the total amount 
                paid to the States pursuant to such section 403(l) for 
                the prior fiscal year that is represented by the amount 
                paid to such State pursuant to such section 403(l) for 
                the prior fiscal year, except that a State may not be 
                allotted an amount under this subparagraph that exceeds 
                the amount that would have been allotted to such State 
                pursuant to such section 403(k) had the sequestration 
                not been in effect.
                    (B) Reallotment of amounts remaining unallotted 
                after application of general rule.--Any amount made 
                available after sequestration for direct spending 
                pursuant to section 403(l) of the Social Security Act 
                that remains unallotted as a result of subparagraph (A) 
                of this paragraph shall be allotted among the States in 
                proportion to the absolute difference between the 
                amount allotted, respectively, to each State as a 
                result of such subparagraph and the amount that would 
                have been allotted to such State pursuant to section 
                403(k) of such Act had the sequestration not been in 
                effect, except that a State may not be allotted an 
                amount under this subparagraph that results in a total 
                allotment to the State under this paragraph of more 
                than the amount that would have been allotted to such 
                State pursuant to such section 403(k) had the 
                sequestration not been in effect.
    (f) Child Support Enforcement Program.--Any sequestration order 
shall accomplish the full amount of any required reduction in payments 
under sections 455 and 458 of the Social Security Act by reducing the 
Federal matching rate for State administrative costs under the 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) Commodity Credit Corporation.--
            (1) Effective date.--For the Commodity Credit Corporation, 
        the date on which a sequestration order takes effect in a 
        fiscal year shall vary for each crop of a commodity. In 
        general, the sequestration order shall take effect when issued, 
        but for each crop of a commodity for which 1-year contracts are 
        issued as an entitlement, the sequestration order shall take 
        effect with the start of the sign-up period for that crop that 
        begins after the sequestration order is issued. Payments for 
        each contract in such a crop shall be reduced under the same 
        terms and conditions.
            (2) Dairy program.--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 hundredweight 
        of milk marketed) shall occur under subparagraph (A) of section 
        201(d)(2) of the Agricultural Act of 1949 (7 U.S.C. 
        1446(d)(2)(A)), shall begin on the day any sequestration order 
        is issued, 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 made 
        for the purchase of milk or the products of milk under this 
        subsection during that fiscal year.
            (3) Effect of delay.--For purposes of subsection (b)(1), 
        the sequestrable base for the Commodity Credit Corporation is 
        the budget-year level of gross outlays resulting from new 
        budget authority that is subject to reduction under paragraphs 
        (1) and (2), and subsection (b)(2) shall not apply.
            (4) Certain authority not to be limited.--Nothing in this 
        Act shall restrict the Corporation in the discharge of its 
        authority and responsibility as a corporation to buy and sell 
        commodities in world trade, or limit or reduce in any way any 
        appropriation that provides the Corporation with funds to cover 
        its net realized losses.
    (h) Extended Unemployment Compensation.--(1) A State may reduce 
each weekly benefit payment made under the Federal-State Extended 
Unemployment Compensation Act of 1970 for any week of unemployment 
occurring during any period with respect to which payments are reduced 
under any sequestration order by a percentage not to exceed the 
percentage by which the Federal payment to the State under section 204 
of such Act is to be reduced for such week as a result of such order.
    (2) A reduction by a State in accordance with subparagraph (A) 
shall not be considered as a failure to fulfill the requirements of 
section 3304(a)(11) of the Internal Revenue Code of 1986.
    (i) Federal Employees Health Benefits Fund.--For the Federal 
Employees Health Benefits Fund, a sequestration order shall take effect 
with the next open season. The sequestration shall be accomplished by 
annual payments from that Fund to the General Fund of the Treasury. 
Those annual payments shall be financed solely by charging higher 
premiums. For purposes of subsection (b)(1), the sequestrable base for 
the Fund is the budget-year level of gross outlays resulting from 
claims paid after the sequestration order takes effect, and subsection 
(b)(2) shall not apply.
    (j) Federal Housing Finance Board.--Any sequestration of the 
Federal Housing Finance Board shall be accomplished by annual payments 
(by the end of each fiscal year) from that Board to the general fund of 
the Treasury, in amounts equal to the uniform sequestration percentage 
for that year times the gross obligations of the Board in that year.
    (k) Federal Pay.--
            (1) In general.--Except as provided in section 10(b)(3), 
        new budget authority to pay Federal personnel from direct 
        spending accounts shall be reduced by the uniform percentage 
        calculated under section 8 or 9, as applicable, but no 
        sequestration order may reduce or have the effect of reducing 
        the rate of pay to which any individual is entitled under any 
        statutory pay system (as increased by any amount payable under 
        section 5304 of title 5, United States Code, or section 302 of 
        the Federal Employees Pay Comparability Act of 1990) or the 
        rate of any element of military pay to which any individual is 
        entitled under title 37, United States Code, or any increase in 
        rates of pay which is scheduled to take effect under section 
        5303 of title 5, United States Code, section 1009 of title 37, 
        United States Code, or any other provision of law.
            (2) Definitions.--For purposes of this subsection:
                    (A) The term ``statutory pay system'' shall have 
                the meaning given that term in section 5302(1) of title 
                5, United States Code.
                    (B) The term ``elements of military pay'' means--
                            (i) the elements of compensation of members 
                        of the uniformed services specified in section 
                        1009 of title 37, United States Code,
                            (ii) allowances provided members of the 
                        uniformed services under sections 403a and 405 
                        of such title, and
                            (iii) cadet pay and midshipman pay under 
                        section 203(c) of such title.
                    (C) The term ``uniformed services'' shall have the 
                meaning given that term in section 101(3) of title 37, 
                United States Code.
    (l) Guaranteed Student Loans.--(A) For all student loans under part 
B of title IV of the Higher Education Act of 1965 made on or after the 
date of a sequestration, the origination fees shall be increased by a 
uniform percentage sufficient to produce the dollar savings in student 
loan programs for the fiscal year of the sequestration required by 
section 8 or 9, and all subsequent origination fees shall be increased 
by the same percentage, notwithstanding any other provision of law.
    (B) The origination fees to which paragraph (A) applies are those 
specified in sections 428H(f)(1) and 438(c) of that Act.
    (m) Insurance Programs.--Any sequestration in a Federal program 
that sells insurance contracts to the public (including the Federal 
Crop Insurance Fund, the National Insurance Development Fund, the 
National Flood Insurance Fund, insurance activities of the Overseas 
Private Insurance Corporation, and Veterans' life insurance programs) 
shall be accomplished by annual payments from the insurance fund or 
account to the general fund of the Treasury. The amount of each annual 
payment by each such fund or account shall be the amount received by 
the fund or account by increasing premiums on contracts entered into 
after the date a sequestration order takes effect by the uniform 
sequestration percentage, and premiums shall be increased accordingly.
    (n) Medicaid.--The November 15th estimate of medicaid spending by 
States shall be the base estimate from which the uniform percentage 
reduction under any sequestration, applied across-the-board by State, 
shall be made. Succeeding Federal payments to States shall reflect that 
reduction. The Health Care Financing Administration shall reconcile 
actual medicaid spending for each fiscal year with the base estimate as 
reduced by the uniform percentage, and adjust each State's grants as 
soon as practicable, but no later than 100 days after the end of the 
fiscal year to which the base estimate applied, to comply with the 
sequestration order.
    (o) Medicare.--
            (1) Timing of application of reductions.--
                    (A) In general.--Except as provided in subparagraph 
                (B), if a reduction is made in payment amounts pursuant 
                to a sequestration order, the reduction shall be 
                applied to payment for services furnished after the 
                effective date of the order. For purposes of the 
                previous sentence, in the case of inpatient services 
                furnished for an individual, the services shall be 
                considered to be furnished on the date of the 
                individual's discharge from the inpatient facility.
                    (B) Payment on the basis of cost reporting 
                periods.--In the case in which payment for services of 
                a provider of services is made under title XVIII of the 
                Social Security Act on a basis relating to the 
                reasonable cost incurred for the services during a cost 
                reporting period of the provider, if a reduction is 
                made in payment amounts pursuant to a sequestration 
                order, the reduction shall be applied to payment for 
                costs for such services incurred at any time during 
                each cost reporting period of the provider any part of 
                which occurs after the effective date of the order, but 
                only (for each such cost reporting period) in the same 
                proportion as the fraction of the cost reporting period 
                that occurs after the effective date of the order.
            (2) No increase in beneficiary charges in assignment-
        related cases.--If a reduction in payment amounts is made 
        pursuant to a sequestration order 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.
            (3) No effect on computation of aapcc.--In computing the 
        adjusted average per capita cost for purposes of section 
        1876(a)(4) of the Social Security Act, the Secretary of Health 
        and Human Services shall not take into account any reductions 
        in payment amounts which have been or may be effected under 
        this part.
    (p) Postal Service Fund.--Any sequestration of the Postal Service 
Fund shall be accomplished by annual payments from that Fund to the 
General Fund of the Treasury, and the Postmaster General of the United 
States shall have the duty to make those payments during the fiscal 
year to which the sequestration order applies and each succeeding 
fiscal year. The amount of each annual payment shall be--
            (1) the uniform sequestration percentage, times
            (2) the estimated gross obligations of the Postal Service 
        Fund in that year other than those obligations financed with an 
        appropriation for revenue foregone for that year.
Any such payment for a fiscal year shall be made as soon as possible 
during the fiscal year, except that it may be made in installments 
within that year if the payment schedule is approved by the Secretary 
of the Treasury. Within 30 days after the sequestration order is 
issued, the Postmaster General shall submit to the Postal Rate 
Commission a plan for financing the annual payment for that fiscal year 
and publish that plan in the Federal Register. The plan may assume 
efficiencies in the operation of the Postal Service, reductions in 
capital expenditures, increases in the prices of services, or any 
combination, but may not assume a lower Fund surplus or higher Fund 
deficit and must follow the requirements of existing law governing the 
Postal Service in all other respects. Within 30 days of the receipt of 
that plan, the Postal Rate Commission shall approve the plan or modify 
it in the manner that modifications are allowed under current law. If 
the Postal Rate Commission does not respond to the plan within 30 days, 
the plan submitted by the Postmaster General shall go into effect. Any 
plan may be later revised by the submission of a new plan to the Postal 
Rate Commission, which may approve or modify it.
    (q) Power Marketing Administrations and T.V.A.--Any sequestration 
of the Department of Energy power marketing administration funds or the 
Tennessee Valley Authority fund shall be accomplished by annual 
payments from those funds to the General Fund of the Treasury, and the 
administrators of those funds shall have the duty to make those 
payments during the fiscal year to which the sequestration order 
applies and each succeeding fiscal year. The amount of each annual 
payment by a fund shall be--
            (1) the direct spending uniform sequestration percentage, 
        times
            (2) the estimated gross obligations of the fund in that 
        year other than those obligations financed from discretionary 
        appropriations for that year.
Any such payment for a fiscal year shall be made as soon as possible 
during the fiscal year, except that it may be made in installments 
within that year if the payment schedule is approved by the Secretary 
of the Treasury. Annual payments by a fund may be financed by 
reductions in costs required to produce the presequester amount of 
power (but those reductions shall not include reductions in the amount 
of power supplied by the fund), by reductions in capital expenditures, 
by increases in rates, or by any combination, but may not be financed 
by a lower fund surplus or a higher fund deficit and must follow the 
requirements of existing law governing the fund in all other respects. 
The administrator of a fund or the TVA Board is authorized to take the 
actions specified above in order to make the annual payments to the 
Treasury.
    (r) Veterans' Housing Loans.--(1) For all housing loans guaranteed, 
insured, or made under chapter 37 of title 38, United States Code, on 
or after the date of a sequestration, the origination fees shall be 
increased by a uniform percentage sufficient to produce the dollar 
savings in veterans' housing programs for the fiscal year of the 
sequestration required by section 8 or 9, and all subsequent 
origination fees shall be increased by the same percentage, 
notwithstanding any other provision of law.
    (2) The origination fees to which paragraph (1) applies are those 
referred to in section 3729 of title 38, United States Code.

SEC. 12. ESTIMATING ASSUMPTIONS, REPORTS, AND ORDERS.

    (a) Timetable.--The timetable with respect to this part for any 
budget year is as follows:

Date:                               Action to be completed:
    The President's budget 
        submission.
                                        OMB publishes sequestration 
                                                preview report.
    Within 10 days after end of 
        session.
                                        OMB and CBO issue final budget 
                                                year sequestration 
                                                reports.
    5 days later...................
                                        President issues sequestration 
                                                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 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) Exchange of Preliminary Current Policy Baselines.--On January 
15, OMB and CBO shall exchange their preliminary current policy 
baselines for the budget-year session starting in January.
    (d) Sequestration Preview Reports.--
            (1) Reporting requirement.--On January 31, whichever is 
        later, OMB and CBO shall each submit a sequestration preview 
        report.
            (2) Contents.--Each preview report shall set forth the 
        following:
                    (A) Major estimating assumptions.--The major 
                estimating assumptions for the current year, the budget 
                year, and the outyears, and an explanation of them.
                    (B) Current policy baseline.--A detailed display of 
                the current policy baseline for the current year, the 
                budget year, and the outyears, with an explanation of 
                changes in the baseline since it was last issued that 
                includes the effect of policy decisions made during the 
                intervening period and an explanation of the 
                differences between OMB and CBO for each item set forth 
                in the report.
                    (C) Adjusting direct spending targets.--A 
                determination of any adjustments to the direct spending 
                targets under section 4 and an explanation of any 
                adjustments.
                    (D) Requirements for direct spending.--An estimate 
                of the reductions in direct spending to be achieved for 
                the budget year necessary to comply with the direct 
                spending targets.
                    (E) Direct spending sequestration.-- Estimates of 
                the uniform percentage and the amount of comprehensive 
                sequestration of direct spending programs that will be 
                necessary under section 9.
    (e) Official Sequestration Preview Report.--The OMB sequestration 
preview report shall be the official report for purposes of this Act. 
That report shall be set forth, without change, in the budget submitted 
by the President under section 1105(a) of title 31, United States Code, 
for the budget year.
    (f) Final Sequestration Reports.--
            (1) Reporting requirement.--Not later than 10 days 
        following the end of a budget-year session, OMB and CBO shall 
        each submit a final sequestration report.
            (2) Contents.--That report shall be based upon laws enacted 
        through the date of the report and shall set forth all the 
        information and estimates required of a sequestration preview 
        report required by subsections (d)(2)(C) through (E). In 
        addition, that report shall include for each account to be 
        sequestered, the baseline level of sequestrable budgetary 
        resources and the resulting reductions in new budget authority 
        and outlays.
    (g) Presidential Order.--On the day that OMB issues a final 
sequestration report, the President shall issue an order fully 
implementing without change all sequestrations actions required by the 
final sequestration report that requires the lesser total amount of 
direct spending sequestration under section 8 or 9 (as applicable). The 
order shall be effective on issuance and shall be issued only if 
sequestration is required.
    (h) Use of Major Estimating Assumptions and Scorekeeping 
Conventions.--In the estimates, projections, and reports under this 
subtitle, 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. CBO shall use the same 
economic and technical assumptions as used in the most recent report 
submitted by CBO under section 202(f)(1) of the Congressional Budget 
Act of 1974.

SEC. 13. THE CURRENT POLICY 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, and discretionary regulations 
promulgated as final by, the applicable date.
    (b) Direct Spending.--For the current year, the budget year, and 
each outyear, the baseline shall be calculated using the following 
assumptions:
            (1) In general.--Laws providing or creating direct spending 
        are assumed to operate in the manner specified in those laws 
        for each such year, funding for entitlement authority is 
        assumed to be adequate to make all payments required by those 
        entitlements, and funding for deposit insurance is assumed to 
        be adequate to meet the costs of the Financial Institutions 
        Reform, Recovery, and Enforcement Act of 1989 or successor 
        laws.
            (2) Exceptions.--Except as provided in paragraph (3):
                    (A) No program with estimated current-year gross 
                new budget authority greater than $100 million is 
                assumed to expire in the budget year or outyears. In 
                carrying out the preceding sentence, expiring 
                entitlement programs and programs financed by 
                indefinite budget authority are assumed to continue as 
                in effect just prior to their expiration, and other 
                expiring programs are assumed to continue with new 
                budget authority projected as equal to budget authority 
                in the last year for which budget authority is enacted.
                    (B) The percentage 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 a law enacted in that 
                session.
            (3) Cutoff date.--Programs that expire on or before 
        December 31 and that have not been reauthorized by the date of 
        the final sequestration report are assumed to expire. If an 
        increase in veterans compensation has not been enacted by the 
        date of the final sequestration report, it is not assumed.
    (c) 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.

SEC. 14. RELATIONSHIP TO PAY-AS-YOU-GO.

    Reductions in outlays resulting in legislation enacted pursuant to 
section 6 shall not be taken into account for purposes of section 252 
of the Balanced Budget and Emergency Deficit Control Act of 1985, 
except to the extent necessary to achieve a balance in the paygo 
scorecard under such section 252(d).

SEC. 15. 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 12 violates 
        the Constitution.
            (2) Any Member of Congress, or any other person adversely 
        affected by any action taken under this Act, 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 Act.
            (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 12 do not comply with the 
        requirements of this Act.
            (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.
            (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 12 for any fiscal year does not fully implement without 
        change all sequestrations required by the OMB report, 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 12 
        for any fiscal year does not fully implement without change all 
        sequestrations required by the OMB report which is the basis 
        for the order 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 of the United States to be valid, then the entire order 
        issued pursuant to section 12 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 12, including 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 and technical assumptions and estimation of 
methodologies used by OMB or CBO in preparing any report issued under 
section 12 shall not be subject to review in any judicial or 
administrative proceeding.

SEC. 16. APPLICATION.

    The application of provisions, procedures, and points of order 
under House Resolution 235, One Hundred Third Congress, agreed to 
August 5, 1993, shall not be effective for fiscal year 1995 or any 
later fiscal year.

SEC. 17. EFFECTIVE DATE.

    Except as otherwise specified, this Act and the amendments made by 
it shall take effect on the date of its enactment and shall apply to 
fiscal years 1995 and subsequent fiscal years.

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