1 

[COMMITTEE PRINT] 

A COMPENDIUM OF 

LAWS AND RULES OF THE 

CONGRESSIONAL BUDGET PROCESS 

COMMITTEE ON THE BUDGET 

U.S. HOUSE OF REPRESENTATIVES 

AUGUST 2015 

Serial No. CP–1 

Printed for the use of the Committee on the Budget 

rmajette on DSK2TPTVN1PROD with HEARING


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96–107 2015

[COMMITTEE PRINT] 

A COMPENDIUM OF 

LAWS AND RULES OF THE 

CONGRESSIONAL BUDGET PROCESS 

COMMITTEE ON THE BUDGET 

U.S. HOUSE OF REPRESENTATIVES 

AUGUST 2015 

Serial No. CP–1 

Printed for the use of the Committee on the Budget 

emcdonald on DSK67QTVN1PROD with HEARING


E:\Seals\State.#07
Prepared

by

PAUL A. RESTUCCIA

MAJORITY COUNSEL TO THE COMMITTEE

House Budget Counsel

U.S. House of Representatives
INTRODUCTION ______ 

This compendium includes the Congressional procedures,

statutes, rules, scorekeeping guidelines and other matter related to the budgetmaking process of the United States Congress.

While budgeting is often associated with the basic elements 

of taxes and spending, it extends far beyond those elements to 

the very basic concepts of policy making. The gathering and 

distribution of resources are fundamental to the operation of 

the Federal Government. 

Congress estimates the spending, revenue, deficit and debt 

levels of the budget of the United States for a fiscal year.

Each year, Congress is required by law to 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. Moreover, where 

provisions in the concurrent resolution on the budget conflict 

with or are inconsistent with the House Rules, they take precedence. 

Though simple resolutions expire at the end of each Congress, those beginning with the term “House Resolution” before the number; “House Concurrent Resolutions”, such as concurrent resolutions on the budget, do not necessarily expire in 

the same fashion. In each new Congress an “organizing resolution” must be adopted, usually, though not always, this is 

numbered as “H. Res. 5”. As a matter of its introduction, it 

deems all laws and concurrent resolutions in force on the date 

of the end of that Congress shall continue to have force and effect in the new Congress. Provisions in a concurrent resolution 

on the budget are often time limited because they are dependent on a fiscal year, but this is not always the case. 

The year for which a budget resolution is adopted is naturally the “budget resolution year” and is updated each year as a 

new budget resolution is agreed to. While the requirement a 

budget must be adopted is set in law, this has not always been 

followed. The House and the Senate have been unable to come 

to agreement on a common set of budgetary rules and policy 

assumptions reflected in resolution text and levels nine times 

since the enactment of the Congressional Budget Act of 1974.
COMPENDIUM OF LAWS AND RULES ON THE BUDGET

The term “budget year” is closely associated with the budget resolution year, though it is defined in law as the fiscal

year beginning in the calendar year in which a session of 

Congress first meets. The Constitution (Article I, Section 4, 

Part 2 and Amendment XX) stipulates that Congress must 

meet beginning at noon of on January 3 of each year or at a 

time otherwise set in law. If it doesn’t convene at this time, 

Congress generally meets several days thereafter. While the 

term is useful, it may indicate a fiscal year different than the 

one for which a budget resolution is adopted. The budget resolution year does not change depending on the date on which a 

Congress first meets, but rather moves forward a year when a 

new budget resolution is adopted, or deemed in force, for a particular fiscal year.

Statutory controls in law are enforcement procedures that

uphold spending, revenue, the deficit, 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. Currently, automatic direct spending sequestration cuts are in law, but otherwise 

such reductions are only caused by the enactment of newly enacted legislation.

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.

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 agree on proposed changes.

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 amount and account is set out in the report or

joint statement of managers of the budget resolution, as applicable.
A COMPENDIUM 

OF 

LAWS AND RULES 

OF THE 

CONGRESSIONAL BUDGET PROCESS
† †
CONTENTS

_____

PART I – PRIMARY LAWS OF THE 

CONGRESSIONAL BUDGET PROCESS

CONGRESSIONAL BUDGET AND 

IMPOUNDMENT CONTROL ACT OF 1974

Sec. 1 Short Title; Table of Contents........................................................... 33

(a) Short Title.............................................................................. 33

(b) Table of Contents.................................................................. 33

Sec. 2 Declaration of Purposes.................................................................... 36

Sec. 3 Definitions ........................................................................................ 37

In General...................................................................................... 37

Budget Outlays.......................................................................... 37

Outlays....................................................................................... 37

Budget Authority....................................................................... 37

Limitations on Budget Authority............................................... 37

New Budget Authority.............................................................. 37

Borrowing Authority................................................................. 37

Contract Authority..................................................................... 37

Offsetting Receipts.................................................................... 37

Offsetting Collections................................................................ 37

Tax Expenditures....................................................................... 38

Concurrent Resolution on the Budget....................................... 38

Appropriation Act...................................................................... 38

Deficit........................................................................................ 38

Surplus....................................................................................... 38

Government-sponsored Enterprise............................................ 39

Entitlement Authority................................................................ 39

Credit Authority......................................................................... 39

Emergency................................................................................. 40

Unanticipated............................................................................. 40

TITLE I—ESTABLISHMENT OF HOUSE AND SENATE BUDGET COMMITTEES

Sec. 101 Budget Committee of the House of Representatives........................ 41

Sec. 102 Budget Committee of the Senate..................................................... 43

TITLE II—CONGRESSIONAL BUDGET OFFICE

Sec. 201 Establishment of Office.................................................................... 45

(a) In General................................................................................. 45

(b) Personnel.................................................................................. 46

(c) Experts and Consultants........................................................... 46

(d) Relationship to Executive Branch............................................ 46

(e) Relationship to Other Agencies of Congress........................... 47

(f) Revenue Estimates.................................................................... 47

(g) Appropriations......................................................................... 48
TABLE OF CONTENTS 6

Sec. 202 Duties and Functions......................................................................... 48

(a) Assistance to Budget Committees............................................ 48

(b) Assistance to Committees on Appropriations, Ways and 

Means, and Finance................................................................... 49

(c) Assistance to Other Committees and Members....................... 49

(d) Assignment of Office Personnel to Committees and Joint 

Committees................................................................................ 49

(e) Reports to Budget Committees................................................ 49

(f) Use of computers and other techniques.................................... 50

(g) Studies...................................................................................... 50

Sec. 203 Public Access to Budget Data........................................................... 52

(a) Right to Copy........................................................................... 52

(b) Index........................................................................................ 52

(c) Exceptions................................................................................ 52

(d) Information Obtained for Committees and Members.............. 53

(e) Level of Confidentiality........................................................... 53

TITLE III—CONGRESSIONAL BUDGET PROCESS

Sec. 300 Timetable.......................................................................................... 55

Sec. 301 Annual Adoption of Concurrent Resolution on the Budget.............. 56

(a) Content of Concurrent Resolution on the Budget.................... 57

(b) Additional Matters in the Concurrent Resolution.................... 57

(c) Consideration of Procedures or Matters Which Have the Effect of Changing any Rule of the House of Representatives..... 58

(d) Views and Estimates of Other Committees............................. 58

(e) Hearings and Report................................................................. 59

(f) Achievement of Goals for Reducing Unemployment.............. 61

(g) Economic Assumptions........................................................... 62

(h) Budget Committees Consultation with Committees................ 62

(i) Social Security Point of Order.................................................. 62

Sec. 302 Committee Allocations..................................................................... 63

(a) Committee Spending Allocations............................................ 63

(b) Suballocations by Appropriations Committees....................... 64

(c) Point of Order........................................................................... 64

(d) Subsequent Concurrent Resolutions........................................ 65

(e) Alteration of Allocations.......................................................... 65

(f) Legislation Subject to Point of Order....................................... 65

(g) Pay-As-You-Go Exception in the House................................. 66

Sec. 303 Concurrent Resolution on the Budget Must Be Adopted Before 

Budget-Related Legislation Is Considered .................................. 67

(a) In General................................................................................ 67

(b) Exceptions in the House.......................................................... 68

(c) Application to Appropriation Measures in the Senate............. 68

Sec. 304 Permissible Revisions of Concurrent Resolutions on the Budget..... 68

Sec. 305 Provisions Relating to the Consideration of Concurrent Resolutions on the Budget........................................................................ 69

(a) Procedure in the House of Representatives; Debate................ 69

(b) Procedure in the Senate After Report of Committee; Debate; 

Amendments.............................................................................. 71

(c) Action on Conference Reports in the Senate........................... 72

(d) Concurrent Resolution Must Be Consistent in the Senate...... 73
7 TABLE OF CONTENTS

Sec. 306 Legislation Dealing With Congressional Budget Must Be Handled 

by Budget Committees.................................................................. 74

(a) In the Senate............................................................................ 74

(b) In the House of Representatives.............................................. 74

Sec. 307 House Committee Action on all Appropriation Bills to be Completed by June 10........................................................................... 74

Sec. 308 Reports, Summaries, and Projections of Congressional Budget 

Actions........................................................................................... 75

(a) Reports on Legislation Providing New Budget Authority or 

Providing an Increase or Decrease in Revenues or Tax Expenditures.................................................................................. 75

(b) Up-to-Date Tabulations of Congressional Budget Action....... 76

(c) Five-Year Projection of Congressional Budget Act................ 77

(d) Scorekeeping Guidelines......................................................... 77

Sec. 309 House Approval of Regular Appropriation Bills.............................. 77

Sec. 310 Reconciliation................................................................................... 78

(a) Inclusion of Reconciliation Directives in Concurrent Resolution on the Budget..................................................................... 78

(b) Legislative Procedure.............................................................. 78

(c) Compliance With Reconciliation Directions........................... 79

(d) Limitation on Amendments to Reconciliation Bills and Resolutions...................................................................................... 81

(e) Procedure in the Senate........................................................... 82

(f) Completion of Reconciliation Process..................................... 82

(g) Limitation on Changes to the Social Security Act.................. 82

Sec. 311 Budget-Related Legislation Must Be Within Appropriate Levels.... 83

(a) Enforcement of Budget Aggregates......................................... 83

(b) Social Security Levels............................................................. 84

(c) Exception in the House of Representatives............................. 84

Sec. 312 Determinations of Points of Order.................................................... 85

(a) Budget Committee Determinations......................................... 85

(b) Discretionary Spending Point of Order in the Senate............. 85

(c) Maximum Deficit Amount Point of Order in the Senate......... 85

(d) Timing of Points of Order in the Senate.................................. 85

(e) Point of Order in the Senate Against Amendments Between 

the Houses................................................................................. 86

(f) Effect of a Point of Order in the Senate................................... 86

Sec. 313 Extraneous Matter in Reconciliation Legislation.............................. 86

(a) In General................................................................................ 86

(b) Extraneous Provisions............................................................. 86

(c) Extraneous Materials............................................................... 88

(d) Conference Reports................................................................. 89

(e) General Point of Order............................................................ 89

Sec. 314 Adjustments...................................................................................... 89

(a) Adjustments............................................................................. 89

(b) Application of Adjustments..................................................... 89

(c) Reporting Revised Suballocations........................................... 90

(d) Emergencies in the House of Representatives......................... 90

(e) Senate Point of Order Against an Emergency Designation..... 91

Sec. 315 Effect of Adoption of a Special Order of Business in the House of 

Representatives.......................................................................... 92
TABLE OF CONTENTS 8

TITLE IV—ADDITIONAL PROVISIONS TO IMPROVE FISCAL PROCEDURES

PART A—GENERAL PROVISIONS

Sec. 401 Budget-related Legislation Not Subject to Appropriations............... 93

(a) Controls on Certain Budget-Related Legislation Not Subject 

to Appropriations....................................................................... 93

(b) Legislation Providing New Entitlement Authority................. 93

(c) Exceptions............................................................................... 94

Sec. 402 Analysis by Congressional Budget Office........................................ 95

Sec. 403 Jurisdiction of Appropriations Committees...................................... 96

Sec. 404 Study by the General Accounting Office of Forms of Federal Financial Commitment That Are Not Reviewed Annually by 

Congress.................................................................................... 97

Sec. 405 Off-budget Agencies, Programs, and Activities............................... 97

Sec. 406 Member User Group......................................................................... 97

PART B—FEDERAL MANDATES

Sec. 421 Definitions......................................................................................... 98

Sec. 422 Exclusions......................................................................................... 102

Sec. 423 Duties of Congressional Committees................................................ 103

(a) In General................................................................................. 103

(b) Submission of Bills to the Director.......................................... 103

(c) Reports on Federal Mandates................................................... 103

(d) Intergovernmental Mandates................................................... 104

(e) Preemption Clarification and Information............................... 104

(f) Publication of Statement From the Director............................. 104

Sec. 424 Duties of the Director; Statements on Bills and Joint Resolutions 

Other Than Appropriations Bills and Joint Resolutions........................................................................................... 105

(a) Federal Intergovernmental Mandates in Reported Bills and 

Resolutions................................................................................ 105

(b) Federal Private Sector Mandates in Reported Bills and Joint 

Resolutions................................................................................ 106

(c) Legislation Falling Below the Direct Costs Thresholds.......... 107

(d) Amended Bills and Joint Resolutions; Conference Reports.... 107

Sec. 425 Legislation Subject To Point of Order.............................................. 108

(a) In General................................................................................. 108

(b) Rule of Construction................................................................ 109

(c) Committee on Appropriations.................................................. 110

(d) Determination of Applicability to Pending Legislation........... 110

(e) Determinations of Federal Mandate Levels............................. 110

Sec. 426 Provisions relating to the House of Representatives......................... 111

(a) Enforcement in the House of Representatives......................... 111

(b) Disposition of Points of Order................................................. 111

Sec. 427 Requests to the Congressional Budget Office from Senators........... 112

Sec. 428 Clarification of Application.............................................................. 112

(a) In General................................................................................. 112

(b) Direct Costs.............................................................................. 112
9 TABLE OF CONTENTS

TITLE V—CREDIT REFORM

Sec. 500 Short Title......................................................................................... 115

Sec. 501 Purposes............................................................................................ 115

Sec. 502 Definitions......................................................................................... 115

Sec. 503 OMB and CBO Analysis, Coordination and Review....................... 118

Sec. 504 Budgetary Treatment......................................................................... 118

Sec. 505 Authorizations................................................................................... 120

Sec. 506 Treatment of Deposit Insurance and Agencies and Other Insurance 

Programs........................................................................................ 123

Sec. 507 Effect on Other Laws........................................................................ 123

TITLE VI—AMENDMENTS TO BUDGET AND ACCOUNTING ACT OF 1921

[Repealed] 125

TITLE VII—PROGRAM REVIEW AND EVALUATION

Sec. 701 Review and Evaluation of Standing Committees............................. 129

Sec. 702 Review and Evaluation by the Comptroller General [Repealed]...... 130

Sec. 703 Continuing Study of Additional Budget Reform Proposals.............. 131

TITLE VIII—FISCAL AND BUDGETARY INFORMATION AND CONTROLS

Sec. 801 Amendment to Legislative Reorganization Act of 1970 [Repealed] 133

Sec. 802 Changes in functional categories [Repealed] ................................... 137

TITLE IX—MISCELLANEOUS PROVISIONS; EFFECTIVE DATES

Sec. 901 Amendments to the Rules of the House............................................ 139

Sec. 902 Conforming amendments to the Standing Rules of the Senate......... 140

Sec. 903 Amendments to the Legislative Reorganization Act of 1946........... 140

Sec. 904 Exercise of rulemaking powers......................................................... 140

(a) Rulemaking.............................................................................. 140

(b) Waivers.................................................................................... 141

(c) Waivers.................................................................................... 141

(d) Appeals.................................................................................... 141

(e) Expiration of Certain Supermajority Voting Requirements.... 141

Sec. 905 Effective dates [Repealed]................................................................ 142

Sec. 906 Application of Congressional Budget Process to Fiscal Year 1976

[Repealed] ........................................................................................ 142

TITLE X—IMPOUNDMENT CONTROL

PART A—GENERAL PROVISIONS

Sec. 1001 Disclaimer......................................................................................... 143

Sec. 1002 Amendment to Antideficiency Act [Repealed]................................. 144

Sec. 1003 Repeal of existing impoundment reporting provision [Repealed].... 144

PART B—CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS,

RESERVATIONS, AND DEFERRALS OF BUDGET AUTHORITY

Sec. 1011. Definitions......................................................................................... 144

Sec. 1012. Rescission of Budget Authority........................................................ 145

Sec. 1013. Proposed deferrals of Budget Authority........................................... 146

Sec. 1014. Transmission of Messages; Publication............................................ 147
TABLE OF CONTENTS 10

Sec. 1015. Reports by Comptroller General....................................................... 149

Sec. 1016. Suits by Comptroller General........................................................... 149

Sec. 1017. Procedure in House and Senate......................................................... 150

PART C—LINE ITEM VETO

Sec. 1021 Line Item Veto Authority.................................................................. 154

(a) In General................................................................................ 154

(b) Identification of Cancellations................................................ 154

(c) Exception for Disapproval Bills.............................................. 155

Sec. 1022 Special Messages.............................................................................. 155

(a) In General................................................................................ 155

(b) Contents................................................................................... 155

(c) Transmission of Special Messages to House and Senate........ 156

Sec. 1023 Cancellation Effective Unless Disapproved...................................... 156

(a) In General................................................................................ 156

(b) Commensurate Reductions in Discretionary Budget Authority 157

Sec. 1024 Deficit Reduction.............................................................................. 157

(a) In General................................................................................ 157

(b) Adjustments to Spending Limits............................................. 158

(c) Exceptions............................................................................... 158

(d) Congressional Budget Office Estimates.................................. 158

Sec. 1025 Expedited Congressional Consideration of Disapproval Bills.......... 158

(a) Receipt and Referral of Special Message................................ 158

(b) Time Period For Expedited Procedures................................... 158

(c) Introduction of Disapproval Bills............................................ 159

(d) Consideration in the House of Representatives....................... 159

(e) Consideration in the Senate..................................................... 161

(f) Consideration in Conference.................................................... 163

Sec. 1026 Definitions........................................................................................... 164

Sec. 1027 Identification of Limited Tax Benefits................................................ 168

(a) Statement By Joint Tax Committee........................................... 168

(b) Statement Included in Legislation............................................. 168

(c) President’s Authority................................................................. 168

(d) Congressional Identification of Limited Tax Benefits.............. 169

BALANCED BUDGET AND 

EMERGENCY DEFICIT CONTROL ACT OF 1985 

Sec. 2 Minimum Corporate Tax by Corporations........................................... 175

Sec. 3 Achille Lauro Hijacking....................................................................... 176

TITLE II – DEFICIT REDUCTION PROCEDURES 

Sec. 200 Short title and table of contents............................................................. 177

PART A—CONGRESSIONAL BUDGET PROCESS

Subpart I—Congressional Budget

Sec. 201 Congressional Budget........................................................................ 178

Subpart II—Amendments to Title IV of the Congressional Budget Act of 1974

Sec. 211 New Spending Authority................................................................... 178

Sec. 212 Credit Authority................................................................................. 178

Sec. 213 Description of Congressional Budget Office.................................... 178

Sec. 214 General Accounting Office Study; Off-Budget Agencies; Member 

User Group.................................................................................... 178
11 TABLE OF CONTENTS

Subpart III—Additional Provisions to Improve Budget Procedures

Sec. 221 Congressional Budget Office.............................................................. 179

Sec. 222 Current Services Budget for Congressional Budget Purposes............ 179

Sec. 223 Study of Off-Budget Agencies............................................................ 179

Sec. 224 Changes in Functional Categories....................................................... 179

Sec. 225 Jurisdiction of Committee on Government Operations....................... 179

Sec. 226 Continuing study of Congressional Budget Process........................... 179

Sec. 227 Early Election of Committees of the House.......................................... 179

Sec. 228 Rescissions and Transfers in Appropriation Bills............................... 179

Subpart IV—Technical and Conforming Amendments

Sec. 231 Table of Contents................................................................................ 180

Sec. 232 Additional Technical and Conforming Amendments.......................... 180

PART B—BUDGET SUBMITTED BY THE PRESIDENT

Sec. 241 Submission of President’s Budget; Maximum Deficit Amount May 

Not Be Exceeded............................................................................. 180

(a) Submission of President’s Budget............................................. 180

(b) Maximum Deficit Amount May Not Be Exceeded................... 180

Sec. 242 Supplemental Budget Estimates and Changes.................................... 180

(a) Change in Date of Submission.................................................. 180

(b) Revisions and Supplemental Summaries.................................. 180

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............................................................. 181

(a) Table of Contents..................................................................... 181

(b) General Statement of Budget Enforcement Through Sequestration......................................................................................... 181

(c) Definitions................................................................................ 181

Sec. 251 Enforcing Discretionary Spending Limits......................................... 185

(a) Enforcement............................................................................. 185

(b) Adjustments to Discretionary Spending Limits....................... 187

(c) Discretionary Spending Limit.................................................. 191

Sec. 251A Enforcement of Budget Goal............................................................. 192

(1) Calculation of Total Deficit Reduction.................................... 192

(2) Allocation to Functions............................................................ 192

(3) Defense Function Reduction.................................................... 192

(4) Nondefense Function Reduction.............................................. 193

(5) Implementing Discretionary Reductions................................. 194

(6) Implementing Direct Spending Reductions............................. 194

(7) Adjustments for Medicare....................................................... 196

(8) Implementation of Reductions................................................. 196

(9) Report....................................................................................... 196

(10) Implementing Direct Spending Reductions for Fiscal Years 

2014 and 2015........................................................................... 196

Sec. 252 Enforcing Pay-As-You-Go................................................................ 197

(a) Purpose..................................................................................... 197

(b) Sequestration ........................................................................... 197

(c) Eliminating a Deficit Increase.................................................. 197

(d) Estimates.................................................................................. 198

(e) Emergency Legislation............................................................ 199
TABLE OF CONTENTS 12

Sec. 253 Enforcing Deficit Targets.................................................................. 199

(a) Sequestration............................................................................ 199

(b) Excess Deficit; Margin............................................................ 199

(c) Dividing the Sequestration....................................................... 199

(d) Defense.................................................................................... 200

(e) Non-Defense........................................................................... 200

(f) Baseline Assumptions; Part-Year Appropriations.................... 201

(g) Adjustments To Maximum Deficit Amounts.......................... 201

(h) Treatment of Deposit Insurance............................................... 203

Sec. 254 Reports and Orders............................................................................ 204

(a) Timetable................................................................................. 204

(b) Submission and Availability of Reports.................................. 204

(c) Sequestration Preview Reports................................................ 204

(d) Notification Regarding Military Personnel.............................. 205

(e) Sequestration Update Reports.................................................. 205

(f) Final Sequestration Reports...................................................... 206

(g) Within-Session Sequestration Reports and Order................... 207

(h) GAO Compliance Report......................................................... 207

(i) Low-Growth Report.................................................................. 207

(j) Economic and Technical Assumptions..................................... 208

Sec. 255 Exempt Programs and Activities....................................................... 208

(a) Social Security Benefits and Tier I Railroad Retirement......... 208

(b) Veterans Programs................................................................... 208

(c) Net Interest............................................................................... 208

(d) Refundable Income Tax Credits.............................................. 208

(e) Non-Defense Unobligated Balances........................................ 208

(f) Optional Exemption of Military Personnel.............................. 209

(g) Other Programs and Activities................................................. 209

(h) Low-Income Programs............................................................ 215

(i) Economic Recovery Programs................................................. 215

(j) Split Treatment Programs......................................................... 215

(k) Identification of Programs....................................................... 216

Sec. 256 General and Special Sequestration Rules.......................................... 216

(b) Student Loans.......................................................................... 216

(d) Special Rules for Medicare Program....................................... 216

(e) Community and Migrant Health Centers, Indian Health Service and Facilities, and Veterans’ Medical Care....................... 219

(f) Treatment of Child Support Enforcement Programs................ 219

(g) Federal Pay.............................................................................. 219

(h) Treatment of Federal Administrative Expenses....................... 220

(i) Treatment of Payments and Advances Made with Respect to 

Unemployment Compensation Programs.................................. 221

(j) Commodity Credit Corporation................................................ 222

(k) Effects of Sequestration........................................................... 223

Sec. 257 The Baseline...................................................................................... 224

(a) In General................................................................................. 224

(b) Direct Spending and Receipts.................................................. 224

(c) Discretionary Appropriations................................................... 225

(d) Up-to-Date Concepts............................................................... 227

(e) Asset Sales............................................................................... 227

Sec. 258 Suspension in the Event of War or Low Growth.............................. 227

(a) Procedures in the Event of a Low Growth Report................... 227

(b) Suspension of Sequestration Procedures................................. 229

(c) Restoration of Sequestration Procedures................................. 229

Sec. 258A Modification of Presidential Order.................................................... 229

(a) Introduction of Joint Resolution.............................................. 229

(b) Procedures for Consideration of Joint Resolutions................. 229
13 TABLE OF CONTENTS

Sec. 258B Flexibility Among Defense Programs, Projects, and Activities........ 232

Sec. 258C Special Reconciliation Process.......................................................... 236

(a) Reporting of Resolutions and Reconciliation Bills, in the 

Senate.................................................................................... 236

(b) Procedures................................................................................ 238

PART D—BUDGETARY TREATMENT OF SOCIAL SECURITY

Sec. 261 Treatment of Trust Funds.................................................................. 239

(a) Fiscal Years 1986 Through 1992............................................. 239

(b) Fiscal Year 1993 and Thereafter.............................................. 240

PART E—MISCELLANEOUS AND RELATED PROVISIONS

Sec. 271 Waivers and Suspensions; Rulemaking Powers................................ 241

Sec. 272 Restoration of Trust Fund Investments............................................. 241

Sec. 273 Revenue Estimates............................................................................. 245

Sec. 274 Judicial Review................................................................................. 246

(a) Expedited Review.................................................................... 246

(b) Appeal to Supreme Court........................................................ 246

(c) Expedited Consideration.......................................................... 247

(d) Noncompliance with Sequestration Procedures...................... 247

(e) Timing of Relief....................................................................... 248

(f) Preservation of Other Rights.................................................... 248

(g) Economic Data, Assumptions, and Methodologies................. 248

Sec. 275. Effective Dates [Repealed]................................................................ 248

UNITED STATES POSTAL SERVICE PROVISIONS

OMNIBUS BUDGET RECONCILIATION ACT OF 1989

Sec. 4001 Budgetary Treatment of the Postal Service Fund.............................. 251

POSTAL ACCOUNTABILITY AND ENHANCEMENT ACT

Sec. 401 Postal Service Competitive Fund...................................................... 253

BUDGET ENFORCEMENT ACT OF 1990

Sec. 13001 Short title; Table of Contents............................................................ 256

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..................................................................................... 259

PART II—RELATED AMENDMENTS

Sec. 13111 Temporary Amendments to the Congressional Budget Act of 

1974............................................................................................... 259

Sec. 13112 Conforming Amendments................................................................. 259
TABLE OF CONTENTS 14

SUBTITLE B—PERMANENT AMENDMENTS TO THE

CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974

Sec. 13201 Credit Accounting............................................................................. 260

Sec. 13202 Codification of Provision Regarding Revenue Estimates................. 260

Sec. 13203 Debt Increase as Measure of Deficit; Display of Federal Retirement Trust Fund Balance............................................................... 260

Sec. 13204 Pay-As-You-Go Procedures.............................................................. 261

Sec. 13205 Amendments to Section 303.............................................................. 261

Sec. 13206 Amendments to Section 308.............................................................. 261

Sec. 13207 Standardization of Language Regarding Points of Order.................. 261

Sec. 13208 Standardization Additional Deficit Control Provisions..................... 261

Sec. 13209 Codification of Precedent With Regard to Conference Reports and 

Amendments Between the Houses................................................ 261

Sec. 13210 Superseded Deadlines and Conforming Changes.............................. 261

Sec. 13211 Definitions......................................................................................... 262

Sec. 13212 Savings Transfers Between Fiscal Years.......................................... 262

Sec. 13213 Conforming Change to Title 31......................................................... 262

Sec. 13214 The Byrd Rule on Extraneous Matter in Reconciliation................... 262

SUBTITLE C—SOCIAL SECURITY

Sec. 13301 Off-Budget Status of OASDI Trust Funds........................................ 263

Sec. 13302 Protection of OASDI Trust Funds in the House of Representatives 263

Sec. 13303 Social Security Firewall and Point of Order in the Senate ............... 265

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

Trust Funds Regarding the Actuarial Balance of Trust Funds...... 266

Sec. 13305 Exercise of Rulemaking Power......................................................... 266

Sec. 13306 Effective Date.................................................................................... 266

SUBTITLE D—TREATMENT OF FISCAL YEAR 1991 SEQUESTRATION

Sec. 13401 Sec. 13401. Restoration of Funds Sequestered................................. 267

SUBTITLE E—GOVERNMENT-SPONSORED ENTERPRISES

Sec. 13501 Financial Safety and Soundness of Government-Sponsored Enterprises.............................................................................................. 267

UNFUNDED MANDATES REFORM ACT OF 1995

Sec. 1 Short Title.......................................................................................... 273

Sec. 2 Purposes............................................................................................. 273

Sec. 3 Definitions......................................................................................... 274

Sec. 4 Exclusions.......................................................................................... 275

Sec. 5 Agency Assistance............................................................................. 275

TITLE I—LEGISLATIVE ACCOUNTABILITY AND REFORM

Sec. 101 Legislative Mandate Accountability and Reform.............................. 275

(a) In General................................................................................ 275

(b) Technical and Conforming Amendments................................ 276

Sec. 102 Assistance to Committees and Studies.............................................. 276

Sec. 103 Cost of Regulations........................................................................... 278

(a) Sense of the Congress............................................................. 278

(b) Statement of Cost.................................................................... 278

(c) Cooperation of Office of Management and Budget................ 278

Sec. 104 Repeal of Certain Analysis by Congressional Budget Office........... 278
15 TABLE OF CONTENTS

Sec. 105 Consideration for Federal Funding.................................................... 279

Sec. 106 Findings............................................................................................. 279

(a) Findings................................................................................... 279

(b) Sense of the Senate.................................................................. 279

Sec. 107 Enforcement in the House of Representatives................................... 279

(a) Motions to Strike in the Committee of the Whole................... 279

(b) Committee on Rules Reports on Waived Points of Order....... 280

Sec. 108 Exercise of Rulemaking Powers........................................................ 280

Sec. 109 Authorization of Appropriations....................................................... 280

Sec. 110 Effective Date.................................................................................... 280

TITLE II—REGULATORY ACCOUNTABILITY AND REFORM

Sec. 201 Regulatory Process............................................................................ 281

Sec. 202 Statements to Accompany Significant Regulatory Actions.............. 281

(a) In General................................................................................. 281

(b) Promulgation............................................................................ 282

(c) Preparation in Conjunction With Other Statement.................. 282

Sec. 203 Small Government Agency Plan....................................................... 282

(a) Effects on Small Governments................................................ 282

(b) Authorization of Appropriations ............................................. 282

Sec. 204 State, Local, and Tribal Government Input....................................... 283

(a) In General................................................................................. 283

(b) Meetings Between State, Local, Tribal and Federal Officers.. 283

(c) Implementing Guidelines......................................................... 283

Sec. 205 Least Burdensome Option or Explanation Required......................... 283

(a) In General................................................................................. 283

(b) Exception................................................................................. 284

(c) OMB Certification................................................................... 284

Sec. 206 Assistance to the Congressional Budget Office................................ 284

Sec. 207 Pilot Program on Small Government Flexibility............................... 284

(a) In General................................................................................. 284

(b) Program Focus......................................................................... 284

Sec. 208 Annual Statements to Congress on Agency Compliance.................. 284

Sec. 209 Effective Date.................................................................................... 285

TITLE III—REVIEW OF FEDERAL MANDATES

Sec. 301 Baseline Study of Costs and Benefits................................................ 285

(a) In General................................................................................. 285

(b) Considerations......................................................................... 285

Sec. 302 Report on Federal Mandates By Advisory Commission on Intergovernmental Relations............................................................... 285

(a) In General................................................................................. 285

(b) Criteria..................................................................................... 287

(c) Preliminary Report................................................................... 287

(d) Final Report............................................................................. 287

(e) Priority To Mandates That Are Subject of Judiciary Proceedings........................................................................................ 287

(f) Definitions................................................................................ 288

Sec. 303 Special Authorities of Advisory Commission................................... 288

(a) Experts and Consultants........................................................... 288

(b) Detail of Staff of Federal Agencies......................................... 288

(c) Administrative Support Services............................................. 288

(d) Contract Authority................................................................... 288

Sec. 304 Annual Report to Congress Regarding Federal Court Rulings......... 288

Sec. 305 Special Authorities of Advisory Commission................................... 289

Sec. 306 Authorization of Appropriations....................................................... 289
TABLE OF CONTENTS 16

TITLE IV—JUDICIAL REVIEW 

Sec. 401 Baseline Study of Costs and Benefits................................................ 289

(a) Agency Statements on Significant Regulatory Actions.......... 289

(b) Judicial Review and Rule of Construction............................. 290

STATUTORY PAY–AS–YOU–GO ACT OF 2010

Sec. 1 Short Title.......................................................................................... 293

Sec. 2 Purposes............................................................................................. 293

Sec. 3 Definitions and Applications............................................................. 293

Sec. 4 Paygo Estimates and Paygo Scorecard.............................................. 295

(a) Paygo Estimates....................................................................... 295

(b) CBO Paygo Estimates.............................................................. 298

(c) Current Policy Adjustments for Certain Legislation................ 298

(d) OMB PAYGO Scorecards....................................................... 300

(e) Look-back To Capture Current-Year Effects........................... 300

(f) Averaging Used to Measure Compliance Over 5-year and 

10-year Periods.......................................................................... 301

(g) Emergency Legislation............................................................ 301

Sec. 5 Annual Report and Sequestration Order............................................ 303

(a) Annual Report.......................................................................... 303

(b) Sequestration Order................................................................. 303

Sec. 6 Calculating a Sequestration............................................................... 303

(a) Reducing Nonexempt Budgetary Resources by a Uniform 

Percentage.................................................................................. 303

(b) Outlay Savings......................................................................... 304

Sec. 7 Adjustment for Certain Policies........................................................ 304

(a) Purposes................................................................................... 304

(b) Duration................................................................................... 305

(c) Medicare Payments to Physicians............................................ 305

(d) Estate and Gift Tax.................................................................. 306

(e) AMT Relief.............................................................................. 307

(f) Permanent Extension of Middle-Class Tax Cuts...................... 308

(g) Indexing for Inflation............................................................... 310

(h) Guidance on Estimates and Current Policy Adjustments....... 310

Sec. 8 Application of BBEDCA................................................................... 310

Sec. 9 Technical Corrections........................................................................ 311

Sec. 10 Conforming Amendments................................................................. 311

Sec. 11 Exempt Programs and Activities....................................................... 313

(a) Designations............................................................................. 313

(b) Social Security, Veterans Programs, Net Interest, and Tax 

Credits........................................................................................ 313

(c) Other Programs and Activities, Low-Income Programs, and 

Economic Recovery Programs.................................................. 313

Sec. 12 Determinations and Points of Order.................................................. 314

Sec. 13 Limitation on Changes to the Social Security Act............................ 314

(a) Limitations on Changes to the Social Security Act................. 314

(b) Waivers.................................................................................... 314

(c) Appeals..................................................................................... 314
17 TABLE OF CONTENTS

TITLE II—REGULATORY ACCOUNTABILITY AND REFORM

Sec. 21 Regulatory Process............................................................................ 315

BUDGET CONTROL ACT OF 2011

Sec. 1 Short Title; Table of Contents............................................................... 319

Sec. 2 Severability........................................................................................... 319

TITLE I—TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

Sec. 101 Enforcing discretionary Spending Limits............................................. 320

Sec. 102 Definitions............................................................................................. 320

Sec. 103 Reports and Orders................................................................................ 320

Sec. 104 Expiration........................................................................................ 320

Sec. 105 Amendments to the Congressional Budget and Impoundment Control Act of 1974................................................................................. 320

Sec. 106 Senate Budget Enforcement.................................................................. 321

TITLE II—VOTE ON THE BALANCED BUDGET AMENDMENT

Sec. 201 Vote on the Balanced Budget Amendment........................................... 323

Sec. 202 Consideration by the Other House........................................................ 323

TITLE III—DEBT CEILING DISAPPROVAL PROCESS

Sec. 301 Debt Ceiling Disapproval Process........................................................ 325

Sec. 302 Enforcement of Budget Goal................................................................ 325

TITLE IV—JOINT SELECT COMMITTEE ON DEFICIT REDUCTION

Sec. 401 Establishment of Joint Select Committee.................................. 326

Sec. 402 Expedited Consideration of Joint Committee Recommendations....... 331

Sec. 403 Funding................................................................................................. 335

Sec. 404 Rulemaking......................................................................................... 335

TITLE V—PELL GRANT AND STUDENT LOAN PROGRAM CHANGES 

 Sec. 501 Federal Pell Grants ............................................................................... 336

Sec. 502 Termination of Authority to Make Interest Subsidized Loans to 

Graduate and Professional Students.................................................. 336

Sec. 503 Termination of Direct Loan Repayment Incentives.............................. 336

Sec. 504 Inapplicability of Title IV Negotiated Rulemaking and Master Calendar Exception................................................................................. 336

BIPARTISAN BUDGET ACT OF 2013

Sec. 1 Short Title and Table of Contents..................................................... 341

TITLE I—BUDGET ENFORCEMENT

SUBTITLE A—AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY

DEFICIT CONTROL ACT OF 1985

Sec. 101. Amendments to the Balanced Budget and Emergency Deficit Control Act of 1985............................................................................. 342
TABLE OF CONTENTS 18

SUBTITLE B—ESTABLISHING A CONGRESSIONAL BUDGET

Sec. 111 Fiscal Year 2014 Budget Resolution................................................. 345

Sec. 112 Limitation on Advance Appropriations in the Senate....................... 347

Sec. 113 Rule of Construction in the House of Representatives...................... 348

Sec. 114 Additional Senate Budget Enforcement............................................ 349

Sec. 115 Authority for Fiscal Year 2015 Budget Resolution in the House of 

Representatives.............................................................................. 350

Sec. 116 Authority for Fiscal Year 2015 Budget Resolution in the Senate..... 352

Sec. 117 Exclusion of Savings From PAYGO scorecards............................... 353

Sec. 118 Exercise of Rulemaking Powers........................................................ 353

SUBTITLE C—TECHNICAL CORRECTIONS

Sec. 121 Technical corrections to the Balanced Budget and Emergency 

Deficit Control Act of 1985........................................................... 354

Sec. 122 Technical corrections to the Congressional Budget Act of 1974...... 354
19

PART II 

ADDITIONAL LAWS OF THE 

CONGRESSIONAL BUDGET PROCESS

TITLE 31, UNITED STATES CODE, §1101 THROUGH §1125

§1101 Definitions................................................................................................. 365

§1102 Fiscal Year................................................................................................ 365

§1103 Budget Ceiling.......................................................................................... 365

§1104 Budget and Appropriations Authority of the President............................ 365

§1105 Budget Contents and Submission to Congress......................................... 366

§1106 Supplemental Budget Estimates and Changes.......................................... 375

§1107 Deficiency and Supplemental Appropriations.......................................... 376

§1108 Preparation and Submission of Appropriations Requests to the President ....................................................................................................... 377

§1109 Current Programs and Activities Estimates.............................................. 379

§1110 Year-Ahead Requests for Authorizing Legislation................................... 379

§1111 Improving Economy and Efficiency......................................................... 379

§1112 Fiscal, Budget, and Program Information................................................. 380

§1113 Congressional Information........................................................................ 381

§1114 Budget Information on Consulting Services [Repealed].......................... 383

§1115 Federal Government and Agency Performance Plans.............................. 383

§1116 Agency Performance Reporting ............................................................... 387

§1117 Exemptions................................................................................................ 390

§1118 Pilot Projects for Performance Goals........................................................ 390

§1119 Pilot Projects for Performance Budgeting................................................ 391

§1120 Federal Government and Agency Priority Goals...................................... 392

§1121 Quarterly Priority Progress Reviews and Use of Performance Information.................................................................................................... 394

§1122 Transparency of Programs, Priority Goals, and Results........................... 395

§1123 Chief Operating Officers........................................................................... 397

§1124 Performance Improvement Officers and the Performance Improvement 

Council.................................................................................................. 398

§1125 Elimination of Unnecessary Agency Reporting........................................ 401

ANTIDEFICIENCY ACT

§1341 Limitations on Expending and Obligating Amounts................................ 405

§1342 Limitation on Voluntary Services............................................................. 405

§1349 Adverse Personnel Actions....................................................................... 406

§1350 Criminal Penalty....................................................................................... 406

§1351 Reports on Violations................................................................................ 406

§1512 Apportionment and Reserves.................................................................... 406

§1513 Officials Controlling Apportionments...................................................... 407

§1514 Administrative Division of Apportionments............................................. 408

§1515 Authorized Apportionments Necessitating Deficiency or Supplemental 

Appropriations...................................................................................... 409

§1516 Exemptions............................................................................................... 410

§1517 Prohibited Obligations and Expenditures................................................. 410
TABLE OF CONTENTS 20

PUBLIC DEBT

 TITLE 31 OF THE UNITED STATES CODE

§3101 Public Debt Limit.............................................................................. 415

§3101A Presidential Modification of the Debt Ceiling................................... 415

§3123 Payment of Obligations and Interest on the Public Debt.................. 421

§3321 Disbursing Authority in the Executive Branch................................. 422

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

TITLE I—TROUBLED ASSETS RELIEF PROGRAM

Sec. 123 Credit Reform.................................................................................... 425

Sec. 134 Recoupment....................................................................................... 426

Sec. 202 Reports by the Office of Management and Budget and the Congressional Budget Office............................................................... 426

Sec. 203 Public Access to Budget Data........................................................... 427

Sec. 204 Emergency Treatment....................................................................... 429

MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND

MODERNIZATION ACT OF 2003 

TITLE VIII—COST CONTAINMENT

Sec. 801 Inclusion in Annual Report of Medicare Trustees of Information 

on Status of Medicare Trust Funds................................................ 433

Sec. 802 Presidential Submission of Legislation............................................. 437

Sec. 803 Procedures in House of Representatives........................................... 438

Sec. 804 Procedures in the Senate.................................................................... 442
21

PART III

UNITED STATES CONGRESS

UNITED STATES HOUSE OF REPRESENTATIVES

RULES OF THE HOUSE OF REPRESENTATIVES

RULE X—ORGANIZATION OF COMMITTEES

Clause 1 Committees and Their Legislative Jurisdictions............................... 453

Clause 3 Special Oversight Functions............................................................. 454

Clause 4 Additional Functions of Committees................................................ 455

Clause 5 Election and Membership of Standing Committees......................... 457

Clause 11 Permanent Select Committee on Intelligence................................... 458

RULE XIII—CALENDAR AND COMMITTEE REPORTS

Clause 1 Calendars........................................................................................... 458

Clause 2 Filing and Printing of Reports........................................................... 458

Clause 3 Contents of Reports........................................................................... 459

Clause 4 Availability of Reports...................................................................... 463

Clause 5 Privileged Reports, Generally........................................................... 464

Clause 6 Privileged Reports by the Committee on Rules................................ 464

Clause 7 Resolutions of Inquiry....................................................................... 466

Clause 8 Estimates of Major Legislation......................................................... 466

RULE XVIII—THE COMMITTEE OF THE WHOLE HOUSE ON THE 

STATE OF THE UNION

Clause 10 Concurrent Resolution on the Budget............................................... 468

RULE XXI—RESTRICTIONS ON CERTAIN BILLS

Clause 1 Reservations of Certain Points of Orders.......................................... 469

Clause 2 General Appropriation Bills and Amendments................................. 469

Clause 3 Transportation Obligation Limitations.............................................. 471

Clause 4 Appropriations on Legislative Bills.................................................. 471

Clause 5 Tax and Tariff Measures and Amendments...................................... 472

Clause 6 Designation of Public Works............................................................ 474

Clause 7 Reconciliation Directives.................................................................. 474

Clause 8 Application of Budget Act Points of Order...................................... 474

Clause 9 Earmarks........................................................................................... 475

Clause 10 Cut-As-You-Go................................................................................. 478

Clause 11 Notice Requirements......................................................................... 479

RULE XXII—HOUSE AND SENATE RELATIONS

Clause 11 Conference Reports on the Internal Revenue Code.......................... 480

RULE XXIX—GENERAL PROVISIONS

Clause 4 Authoritative Guidance of Budgetary Levels................................... 480
TABLE OF CONTENTS 22

SEPARATE ORDERS OF H. RES. 5 [114TH CONGRESS]

RULE X—ORGANIZATION OF COMMITTEES

Sec. 3 Separate Orders....................................................................................... 483

(d) Spending Reduction Amendments In Appropriations Bills.......... 483

(e) Budget Matters.............................................................................. 484

(1) “Deeming” Resolution for Fiscal Year 2015............................ 484

(2) Bills May Not Exceed 302(b) Suballocations........................... 485

(g) Duplication of Federal Programs.................................................. 486

(h) Estimates of Direct Spending........................................................ 487

(q) Social Security Solvency............................................................... 488

JURISDICTION OF THE

COMMITTEE ON THE BUDGET OF THE HOUSE OF REPRESENTATIVES

Deschler-Brown-Johnson-Sullivan Precedents; Ch. 41, §7................... 493

Debate on H. Res. 6: Agreement Between the Committees on the 

Budget and Government Reform and Oversight................................. 499

Rules Package/Memorandum of Understanding..................................... 500

Rep. John Kasich, Chairman of the Committee on the Budget.......... 501

Rep. Gerald Solomon, Chairman of the Committee on Rules............ 501

Changes in Jurisdiction in the 105th Congress......................................... 502

UNITED STATES SENATE

RULES OF THE SENATE—S. CON. RES. 21 (110TH CONGRESS)

Sec. 201 Pay-As-You-Go Point of Order in the Senate....................................... 507

Sec. 203 Senate Point of Order Against Legislation Increasing Long-Term 

Deficits.............................................................................................. 509

Sec. 204 Emergency Legislation......................................................................... 509

Sec. 206 Point of Order Against Advance Appropriations.................................. 512

Sec. 208 Application of Previous Allocations in the Senate............................... 514

Sec. 209

Senate Point of Order Against Provisions of Appropriations Legislation That Constitute Changes in Mandatory Programs With Net 

Costs.................................................................................................. 514

RULES OF THE SENATE—S. CON. RES. 70 (110TH CONGRESS)

Sec. 311 Senate Point of Order Against Legislation Increasing Long-Term 

Deficits.............................................................................................. 519

Sec. 314

Senate Point of Order Against Provisions of Appropriations Legislation That Constitute Changes in Mandatory Programs With Net 

Costs.................................................................................................. 520
23 TABLE OF CONTENTS

RULES OF THE SENATE—S. CON. RES. 13 (111TH CONGRESS)

Sec. 403 Emergency Legislation................................................................. 525

Sec.404 Point of Order Against Legislation Increasing Short-Term Deficit........................................................................................... 527

Sec. 405 Point of Order Against Certain Legislation Related to Surface 

Transportation Funding........................................... 528

Sec. 411 Oversight of Government Performance.................................... 529

Sec. 412 Budgetary Treatment of Certain Discretionary Administrative 

Expenses........................................................................ 529

Sec. 413 Application and Effect of Changes in Allocations and Aggregates....................................................................................... 529

Sec. 414 Adjustments to Reflect Changes in Concepts and Definitions.............................................................................................. 530

Sec. 415 Exercise of Rulemaking Powers........................................................ 530

RULES OF THE SENATE—BUDGET CONTROL ACT OF 2011

Sec. 106 Senate Budget Enforcement.............................................................. 533

RULES OF THE SENATE—BIPARTISAN BUDGET ACT OF 2013

Sec. 111 Fiscal Year 2014 Budget Resolution..................................... 539

Sec. 112 Limitation on Advance Appropriations in the Senate.................. 540

Sec. 114 Additional Senate Budget Enforcement................................. 542

Sec. 116 Authority for Fiscal Year 2015 Budget Resolution in the Senate.... 543

Sec. 117 Exclusion of Savings from Paygo Scorecards........................... 544

Sec. 118 Exercise of Rulemaking Powers.......................................... 544

JURISDICTION OF THE

COMMITTEE ON THE BUDGET OF THE UNITED STATES SENATE

S. RES. 445 (108TH CONGRESS)

Sec. 101(d) Jurisdiction of the Budget Committee............................................... 547

Sec. 101(e) OMB Nominees................................................................................. 548

RULE XXV—STANDING COMMITTEES

1.(e) Committee on the Budget......................................................... 548

UNANIMOUS CONSENT REQUEST AGREEMENT OF JANUARY 30, 1975

Unanimous Consent Request............................................................. 549

UNANIMOUS CONSENT REQUEST AGREEMENT OF AUGUST 4, 1977

Unanimous Consent Request............................................................. 550
24

PART IV

GENERAL MATTER

List of Concurrent Resolutions on the Budget.................................. 559

List of Reconciliation Acts................................................................ 567

List of Alternating Responsibilities of the House and Senate 

Budget Committees....................................................................... 570

The Constitution of the United States............................................... 579

Budget and Accounting Act of 1921................................................. 585

Employment Act of 1946.................................................................. 597

Scorekeeping Guidelines................................................................... 603

Appropriated Entitlements................................................................. 611
PART I

PRIMARY LAWS OF THE 

CONGRESSIONAL BUDGET PROCESS
26
27

CONTENTS

CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974

BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985

POSTAL SERVICE PROVISIONS OF THE OMNIBUS BUDGET RECONCILIATION ACT OF 1989

POSTAL ACCOUNTABILITY AND ENHANCEMENT ACT

BUDGET ENFORCEMENT ACT OF 1990

UNFUNDED MANDATES REFORM ACT OF 1995

STATUTORY PAY-AS-YOU-GO ACT OF 2010

BUDGET CONTROL ACT OF 2011

BIPARTISAN BUDGET ACT OF 2013
28
29

CONGRESSIONAL BUDGET AND

IMPOUNDMENT CONTROL ACT OF 1974
30

CONGRESSIONAL BUDGET AND 

IMPOUNDMENT CONTROL ACT OF 1974

H.R.7130, PUBLIC LAW 93-344

Sponsor: Rep Al Ullman 

April 18, 1973 Introduced in House

November 20, 1973 Reported to House from the Committee on Rules 

with amendment, H. Rept. 93-658.

December 5, 1973 Passed/agreed to in House: Measure passed House, 

amended, roll call #631 (386-23).

March 22, 1974 Passed/agreed to in Senate: Measure passed Senate, amended, in lieu of S. 1541, roll call #87 (80-0).

June 11, 1974 Conference report filed in House, H. Rept. 93-1101.

June 12, 1974 Conference report filed in Senate, S. Rept. 93-924.

June 18, 1974 Conference report agreed to in House: House 

agreed to conference report, roll call #300 (401-6).

June 21, 1974 Conference report agreed to in Senate: Senate 

agreed to conference report, roll call #261 (75-0).

June 21, 1974 Cleared for White House

July 9, 1974 Measure presented to President.

July 12, 1974 Signed by President.

July 12, 1974 Public law 93-344.
31

CONGRESSIONAL BUDGET 

AND IMPOUNDMENT CONTROL ACT OF 1974

PUBLIC LAW 93–344; JULY 12, 1974; 88 STAT 297

AMENDMENTS

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"; Public Law 97-258; September 13, 1982; 96 Stat.

877

Balanced Budget and Emergency Deficit Control Act of 1985;

Public Law 99–177, Title II, Part A; December 12, 1985;

99 Stat. 1037, 1039.

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

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.
32

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.

Bipartisan Budget Act of 2013; Public Law 113-67; December 

26, 2013.
§101 2 U.S.C. 621 note

CONGRESSIONAL BUDGET AND

IMPOUNDMENT CONTROL ACT OF

1974

__________

[PUBLIC LAW 93–344, 88 STAT. 297; JULY 12, 1974, H.R. 7130]

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; TABLES OF CONTENTS

SECTION 1. [2 U.S.C. 621 note] (a) SHORT TITLE.—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. 

 1The United States Supreme Court declared Part C of title X, the “Line 

Item Veto Act of 1996” unconstitutional (Clinton, President of the United 

States, et al. v. City of New York et al., 524 U.S. 417 (1998)).
Sec. 1 CONGRESSIONAL BUDGET ACT OF 1974 34

2 U.S.C. 621 note §101

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 budgetrelated legislation is considered.

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

Sec. 305. Provisions 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. 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. 403. Jurisdiction of the Appropriations Committee.

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.

 2 The “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).
35 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 1

§101 2 U.S.C. 621 note

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.

TITLE VI— BUDGET AGREEMENT ENFORCEMENT PROVISIONS 

[Repealed3]

Sec. 601. Definitions and point of order.

Sec. 602. Committee allocations and enforcement.

Sec. 603. Consideration of legislation before adoption of budget resolution for 

that fiscal year.

Sec. 604. Reconciliation directives regarding pay-as-you-go requirements. 

Sec. 605. Application of section 311; point of order.

Sec. 606. 5-year budget resolution; budget resolutions must conform to Balanced Budget and Emergency Deficit Control Act of 1985.

Sec. 607. Effective date.

TITLE VII—PROGRAM REVIEW AND EVALUATION

Sec. 701. Review and evaluation by standing committees.

Sec. 702. Review and evaluation by the Comptroller General. [Repealed]

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

TITLE VIII—FISCAL AND BUDGETARY INFORMATION CONTROLS

801. Amendment to Legislative Reorganization Act of 1970. [Repealed]

802. Changes in functional categories. [Repealed]

TITLE IX—MISCELLANEOUS PROVISIONS; EFFECTIVE DATES

Sec. 901. Amendments to rules of the House.

Sec. 902. Conforming amendments to standing rule of the Senate.

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

Sec. 904. Exercise of rulemaking powers.

Sec. 905. Effective dates. [Repealed4]

Sec. 906. Application of congressional budget process to fiscal year 1976. 

[Repealed5] 

 3 Section 10118(a) of The Balanced Budget Act of 1997, (H.R. 2015 (105th 

Congress); Public Law 105—33; 111 Stat. 695), repealed Title VI of the Congressional Budget Act of 1974 in its entirety. The short title of title X of that 

Act is the Budget Enforcement Act of 1997. 4 Section 10119(a) of the Balanced Budget Act of 1997, (H.R. 2015); P.L105-

33; 111 Stat. 695), repealed section 905, Congressional Budget Act of 1974. 5 Section 10119(a) of the BBA of 1997, (H.R. 2015; P.L. 105-33; 111 Stat. 

695), repealed section 906, Congressional Budget Act of 1974.
Sec. 2 CONGRESSIONAL BUDGET ACT OF 1974 36

2 U.S.C. 621 §102

TITLE X—IMPOUNDMENT CONTROL

PART A—GENERAL PROVISIONS

Sec. 1001. Disclaimer.

Sec. 1002. Amendment to Anti-Deficiency Act. [Repealed]

Sec. 1003. Repeal of existing impoundment reporting provision. [Repealed]

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 VETO6

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. [2 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.

 6 The Supreme Court held this Part unconstitutional. The full text of the 

Line Item Veto Act of 1996, may be found infra. Though it is not in force in 

law it has not been repealed and so it remains in the U.S. Code and is also set 

forth in this Compendium. 
37 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 3

§103 2 U.S.C. 622

DEFINITIONS

SEC. 3. [2 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”7

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;

(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

 7 Prior to the Congressional Budget Act, the term “obligational authority” 

was frequently used instead of budget authority. (Principles of Federal Appropriations Law; Third Edition; Volume I; p. 2-4)
Sec. 3 CONGRESSIONAL BUDGET ACT OF 1974 38

2 U.S.C. 622 §103

(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.8

(6) The term “deficit” means, with respect to a fiscal

year, the amount by which outlays exceeds receipts during

that year.9

(7) The term “surplus” means, with respect to a fiscal

year, the amount by which receipts exceeds outlays during

that year.

 8 Section 105 of title 1, United Sates Code reads as follows: 

“§105. TITLE OF APPROPRIATION ACTS”

“The style and title of all Acts making appropriations for the support of 

Government shall be as follows: “An Act making appropriations (here insert 

the object) for the year ending September 30 (here insert the calendar year).”

“(July 30, 1947, ch. 388, 61 Stat. 634; Pub. L. 93–344, title V, §506(a), July 

12, 1974, 88 Stat. 322.)”

“1974-Pub. L. 93–344 substituted “September 30” for “June 30”.

“Effective Date of 1974 Amendment

“Pub. L. 93–344, title V, §506(b), July 12, 1974, 88 Stat. 322, which provided that the amendment of this section by Pub. L. 93–344 was effective with 

respect to Acts making appropriations for the support of the Government for 

any fiscal year commencing on or after Oct. 1, 1976, was omitted in the complete revision of title V of Pub. L. 93–344 by Pub. L. 101–508, title XIII, 

§13201(a), Nov. 5, 1990, 104 Stat. 1388–609.” 9 Term deficit is not defined using “budget authority” rather when the term 

“receipts” are used as a form of offset to direct spending, negative outlays are 

used for deficits (and surpluses), not negative budget authority.
39 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 3

§103 2 U.S.C. 622

(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—

(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”10 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.11

(10) The term “credit authority” means authority to

incur direct loan obligations or to incur primary loan

guarantee commitments.

 10 This is similar to the definition of “direct spending.” Further, whereas 

“budget authority” in these definitions includes “new budget authority”, entitlement authority does not include a variation of “new entitlement authority” 

though it appears in places like sections 303(a) and 401 as a term. See §§113 

and 131, infra. 11 The “food stamp program” is now the “Supplemental Nutrition Assistance Program.”
Sec. 3 CONGRESSIONAL BUDGET ACT OF 1974 40

2 U.S.C. 622 §103

(11) The terms “emergency”12 and “unanticipated”

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

the Balanced Budget and Emergency Deficit Control Act of

1985.13

 12 Provisions designated as an emergency in legislation considered by Congress and in enacted law as interpreted by the Office of Management and 

Budget are treated differently. In Congress, under the terms of section 314 of 

the Budget Act, the amounts carrying the designation (pursuant to section 

251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985) 

are not counted for purposes of enforcement. Under BBEDCA though, the 

amounts designated under that section, adjustments are made to the statutory spending caps (which are found in section 251(c) of that Act). For other 

provisions designated under that section of BBEDCA, adjustments are made, 

emergencies are unique in that they are not counted. 13 The relevant parts of Section 250(c) of BBEDCA are as follows: 

“(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.”
§104 88 Stat. 299

TITLE I—ESTABLISHMENT OF

HOUSE AND SENATE BUDGET

COMMITTEES

BUDGET COMMITTEE OF THE HOUSE OF REPRESENTATIVES13

SEC. 101. (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:14

“(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 five 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.”15

 13 This section established the Committee on the Budget of the House of 

Representatives. Included among its responsibilities is the study of the coordination of tax policies with outlays. Rule X still lists House Committees. 14 According to this title, and repeated and amended through the Rules of 

the House, the Committee must include a total of five Members fro the Committee on Appropriations, five from the Committee on Ways and Means (divided by tradition of three each for majority and minority). Representatives 

from the respective Leadership of the Majority and the Minority are required. 

Though not in law, House Rules, requires a Member from Rules Committee. 15 Committee Members are limited serving four of six successive Con-
Sec. 101 CONGRESSIONAL BUDGET ACT OF 1974 42

88 Stat. 299 §104

(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 subpoena

or otherwise, and to take such testimony and records, as it

deems necessary. Subpoenas 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 chairman of the committee, or any member thereof, may administer oaths to witnesses.16

(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 the effect on 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.”

 gresses. An extra Congress is allowed for Chairmen and Ranking Members. 16 The subpoena authority conferred here was superseded by authority given to committees by clause 2(m) of Rule XI (H. Res. 988), 93d Congress.
43 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 102

§105 88 Stat. 300

BUDGET COMMITTEE OF THE SENATE

SEC. 102. (a) Paragraph 1 of Rule XXV17 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

“(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.

 17 Rule XXV sets out the Standing Committees of the Senate. This rule has 

been amended since the enactment of the Budget Act. Currently the Committee on the Budget of the Senate is listed in that rule under paragraph 1 as 

(e)(1) and (e)(2) which detail its jurisdiction. 
Sec. 102 CONGRESSIONAL BUDGET ACT OF 1974 44

88 Stat. 300 §105

(d) Each meeting of the Committee on the Budget of the 

Senate, or any subcommittee thereof, including meetings to 

conduct hearings shall be open to the public, except that a portion or portions of any such meeting may be closed to the public 

if the committee or subcommittee, as the case may be, determines by record vote of a majority of the members of the committee or subcommittee present that the matters to be discussed or the testimony to be taken at such portion or portions—

(1) will disclose matters necessary to be kept secret in 

the interests of national defense or the confidential conduct 

of the foreign relations of the United States;

(2) will relate solely to matters of committee staff personnel or internal staff management or procedure;

(3) will tend to charge an individual with crime or misconduct, to disgrace or injure the professional standing of 

an individual, or otherwise to expose an individual to public 

contempt or obloquy, or will represent a clearly unwarranted invasion of the privacy of an individual;

(4) will disclose the identity of any informer or law enforcement agent or will disclose any information relating to 

the investigation or prosecution of a criminal offense that is 

required to be kept secret in the interests of effective law 

enforcement; or 

(5) will disclose information relating to the trade secrets 

or financial or commercial information pertaining specifically to a given person if—

(A) an Act of Congress requires the information to be 

kept confidential by Government officers and employees; 

or

(B) the information has been obtained by the Government on a confidential basis, other than through an 

application by such person for a specific Government financial or other benefit, and is required to be kept secret in order to prevent undue injury to the competitive 

position of such person.

(e) Paragraph 7(b) of rule XXV of the Standing Rules of the 

Senate and section 133A (b) 18 of the Legislative Reorganization 

Act of 1946 shall not apply to the Committee on the Budget of 

the Senate.

 18 Subsection (b) provides that each hearing by a committee “shall be open 

to the public except when the committee determines that the testimony to be 

taken at that hearing may relate to a matter of national security, may tend to 

reflect adversely on the character or reputation of the witness or any other 

individual, or may divulge matters deemed confidential under other provisions of law or Government regulation.”
§107 2 U.S.C. 601

TITLE II—CONGRESSIONAL 

BUDGET OFFICE

ESTABLISHMENT OF OFFICE

SEC. 201. [2 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).
Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974 46

2 U.S.C. 601 §106

(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.

(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.19

(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 

 19 Section 5332 of the U.S. Code reads as follows: 

“§5332. The General Schedule.

“(a)(1) The General Schedule, the symbol for which is “GS”, is the basic 

pay schedule for positions to which this subchapter applies. Each employee 

to whom this subchapter applies is entitled to basic pay in accordance with 

the General Schedule.”

“(2) The General Schedule is a schedule of annual rates of basic pay, consisting of 15 grades, designated "GS–1" through "GS–15", consecutively, 

with 10 rates of pay for each such grade. The rates of pay of the General 

Schedule are adjusted in accordance with section 5303.”

“(b) When payment is made on the basis of an hourly, daily, weekly, or 

biweekly rate, the rate is computed from the appropriate annual rate of 

basic pay named by subsection (a) of this section in accordance with the 

rules prescribed by section 5504(b) of this title.”.
47 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 201

§107 2 U.S.C. 601

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,20 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.21—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.22 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.23

 20 The “General Accounting Office” became the “Government Accountability 

Office” under the terms of the GAO Human Capital Reform Act of 2004. 21 This subsection is the same as section 273 of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as originally enacted. It was transferred to this title by the Budget Enforcement Act of 1990. 22 The Joint Committee on Taxation is established under 26 U.S.C. 8001. 23 For the authority of the Committees on the Budget to provide guidance 

to the presiding officer for legislation, see section 312 of the Budget Act ( infra at '122). Clause 4 of rule XXIX, affirms the Budget Chair’s authority to 

advise the Presiding Officer. See infra at '379. Clause 8 of rule XIII requires 

macroeconomic estimates when designated by Joint Tax Committee, and 

based on the definition of “revenue legislation” found here. See infra at '363. 
Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974 48

2 U.S.C. 602 §108

(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.24 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)25, and upon vouchers approved by the Director.

DUTIES AND FUNCTIONS

SEC. 202. [2 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.

 24 H.R. 83 (P.L. 113-235), the Consolidated and Further Continuing Appropriations Act, 2015 provided CBO with the following appropriation for fiscal 

year 2015 (House Report 113-655 (accompanying H. Res. 776), Rules Committee Print 113-59, and the explanatory statement printed in the December 

11, 2014, Congressional Record provide additional details related to the bill 

as agreed to by the House of Representatives on December 11, 2014).

“For salaries and expenses necessary for operation of the Congressional 

Budget Office, including not more than $6,000 to be expended on the certification of the Director of the Congressional Budget Office in connection with 

official representation and reception expenses, $45,700,000.” 25 This section is based on the provisions of the last paragraph of 25 Stat. 

546, Act of Oct. 2, 1888. It related to payments from the contingent fund of 

Senate. Those provisions relating to payments from the contingent fund of 

House of Representatives were repealed by Pub. L. 104–186.

2 U.S.C. 6868 was editorially reclassified as 2 U.S.C 6503: 

“§6503. Payments from Senate contingent fund.

“No payment shall be made from the contingent fund of the Senate unless sanctioned by the Committee on Rules and Administration of the Senate. Payments made upon vouchers or abstracts of disbursements of salaries approved by said Committee shall be deemed, held, and taken, and are 

declared to be conclusive upon all the departments and officers of the Government: Provided, That no payment shall be made from said contingent 

fund as additional salary or compensation to any officer or employee of the 

Senate.”
49 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 202

§108 2 U.S.C. 602

(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, 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 
Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974 50

2 U.S.C. 602 §108

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 Representatives 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 en-
51 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 202

§108 2 U.S.C. 602

hance comparisons of budget outlays, credit authority, and 

tax expenditures.

(2) FEDERAL MANDATE STUDIES.26—

(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 fi-

 26 CBO reviews legislation to identify private sector mandates: new mandates, expansions or extensions of existing ones. It indicates if legislation 

contains private-sector mandates and if the total annual cost of the mandates 

exceed a legal threshold for private-sector mandates of $150 million for 2013.
Sec. 203 CONGRESSIONAL BUDGET ACT OF 1974 52

2 U.S.C. 603 §109

nancial 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

(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 DATA

Sec. 203. [2 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.
53 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 203

§109 2 U.S.C. 603

(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 or use as officers or employees of 

the department, agency, establishment, or regulatory agency or 

commission from which it is obtained.
54

THE HISTORY OF THE CONGRESSIONAL BUDGET OFFICE27

Beginning in the early 1920s, the President began to assume more prominence in setting the federal budget. The Budget and Accounting Act of 1921 

gave the President overall responsibility for budget planning by requiring 

him to submit an annual, comprehensive budget proposal to the Congress; 

that act also expanded the President’s control over budgetary information by 

establishing the Bureau of the Budget (renamed the Office of Management 

and Budget in 1971). By contrast, the Congress lacked institutional capacity 

to establish and enforce budgetary priorities, coordinate actions on spending 

and revenue legislation, or develop budgetary and economic information independently of the executive branch.

Conflict between the legislative and executive branches reached a high 

point during the summer of 1974, when Members of Congress objected to 

President Richard Nixon’s threats to withhold Congressional appropriations 

for programs that were inconsistent with his policies (a process known as 

impoundment). The dispute led to the enactment of the Congressional Budget 

and Impoundment Control Act of 1974 in July of that year.

That act reasserted the Congress’s constitutional control over the budget 

by establishing new procedures for controlling impoundments and by instituting a formal process through which the Congress could develop, coordinate, 

and enforce its own budgetary priorities independently of the President. In 

addition, the law created new legislative institutions to implement the new 

Congressional budget process: the House and Senate Budget Committees to 

oversee execution of the budget process and the Congressional Budget Office 

to provide the Budget Committees and the Congress with objective, impartial 

information about budgetary and economic issues. The agency began operating on February 24, 1975, when Alice Rivlin was appointed its first Director.

Since its founding, CBO has had nine Directors. Their names and terms 

of office are as follows:

Director From: To: 

Alice M. Rivlin February 24, 1975 August 31, 1983

Rudolph G. Penner September 1, 1983 April 28, 1987

Robert D. Reischauer March 6, 1989 February 28, 1995

June E. O'Neill March 1, 1995 January 29, 1999

Dan L. Crippen February 3, 1999 January 3, 2003

Douglas Holtz-Eakin February 5, 2003 December 29, 2005

Peter R. Orszag January 18, 2007 November 25, 2008

Douglas W. Elmendorf January 22, 2009 March 31, 2015

Keith Hall April 1, 2015 

During gaps between Directors, the agency has been led by Acting Directors. 

CBO’s Acting Directors have been Edward M. Gramlich, James L. Blum, 

Barry Anderson, Donald B. Marron, and Robert A. Sunshine.

 27 From the chapter “What Is CBO’s History?” from the CBO staff prepared 

resource document: Introduction to the Congressional Budget Office, Congressional Budget Office (July 2015); pp. 12-13. 
§110 2 U.S.C. 631

TITLE III—CONGRESSIONAL

BUDGET PROCESS

TIMETABLE

SEC. 300. [2 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.28

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.29

May 15...................................... Annual appropriation bills

may be considered in

the House.30

June 10..................................... House Appropriations 

Committee reports last

annual appropriation

bill.31

June 15..................................... Congress completes action

on reconciliation legislation.

June 30..................................... House completes action

on annual appropriation bills.

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

 28 2 U.S.C. 1105(a) requires the President to submit a budget by this date 

and include all the required matter listed in that section. See §305, infra. 29 Failing to adopt a budget resolution by April 15 does not give rise to a 

point of order under the Congressional Budget Act of 1974. Before the Balanced Budget and Emergency Deficit Control Act of 1985, the date for completing the budget resolution was May 15. Congress timely adopted a concurrent resolution on the budget twice, in fiscal years 1976 and 1977, prior to 

this date change. Subsequent to moving the date to April 15, when Congress 

adopted a concurrent resolution on the budget, it was as follows: For fiscal 

years 1976 through 2015, the budget resolution was completed once before 

April 15. For fiscal year 1994, H. Con. Res. 64 was adopted on April 1, 1993. 

H. Con. Res. 68, the budget resolution for fiscal year 2000 was adopted on 

April 15, 1999. For fiscal years 1999, 2003, 2005, 2007, 20011, 2012, 2013, 

2014, 2015, no conference report on a budget resolution was adopted. 30 Section 303(b) of the Budget Act sets out this exception. See §113, infra. 31 Section 309 of the Budget Act sets this as a requirement. See §119, infra.
Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 56

2 U.S.C. 632 §111

ANNUAL ADOPTION OF CONCURRENT 

RESOLUTION ON THE BUDGET

Sec. 301. [2 U.S.C. 632] (a) CONTENT OF CONCURRENT RESOLUTION 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 years30 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 allocations31 of the total levels 

set forth pursuant to paragraph (1);

(5) the public debt;32

(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, 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.

 30 Fiscal years after the fiscal year for which a budget resolution is adopted 

are termed “outyears”. The total fiscal years comprising the period is referred 

to as the budget “window”. The minimum five-year period has varied: The 

fiscal year 1996 budget resolution was seven years. Ten years is used often, 

as in fiscal year 2016. 31 “Allocations”, as used here, is not usual. “Aggregates” is commonly used. 32 Though not required, budget resolutions typically include both the recommended levels of “debt held by the public” and levels “subject to limit”.
57 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 301

§111 2 U.S.C. 632

(b) ADDITIONAL MATTERS IN THE 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;33

(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;34 and

(9) set forth direct loan obligation and primary loan

guarantee commitment levels.

 33 This paragraph is known as “the elastic clause” and allows broad authority to the Congress to include additional matter in the budget resolution, 

such as modified or new points of order, scoring rules, and directives to other 

committees to study or recommend budgetary matters. 34 Section 302(g) of this Title sets forth terms by which “pay-as-you-go” procedures apply in the House. It refers to this paragraph for possible methods 

by which revenue may be increased or outlays decreased. See §112, infra. 
Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 58

2 U.S.C. 632 §111

(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.35

(d) VIEWS AND ESTIMATES OF OTHER COMMITTEES.36—

Within 6 weeks after the President submits a budget under

section 1105(a) of title 31, United States Code,37 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.38 The Joint Economic Committee39 shall submit to

 35 Notwithstanding this subsection, the concurrent resolution on the budget is considered a rulemaking document tantamount to the rules of the House 

of Representatives, and supersedes them when they are in conflict. Budget 

resolutions include this language: “The House adopts the provisions of this 

title ... 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 shall supersede other rules only to the extent that they are inconsistent with other such rules”. 36 Clauses 4(f) and 11(c)(3) of rule X of the Rules of the House (see §360, 

infra) stipulates the “Views and Estimates” submitted by committees to the 

Committees on the Budget be open for amendment and voted on before their 

transmittal to the Committee on the Budget. These Views and Estimates 

must also allow for Minority, dissenting, additional and supplemental views 

from the Minority and other Members of the Committee. 37 Under 31 U.S.C. 1105 (see §305, infra), the President must submit his 

budget by “not later than the first Monday in February of each year.” That 

section sets out the criteria required to be included in the submission. 38 Under clause 4(f) of rule X, the Ways and Means Committee “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.” 39 Congress created the Joint Economic Committee when it enacting the 

Employment Act of 1946. Its primary task is to review economic conditions 

and to recommend improvements in economic policy.
59 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 301

§111 2 U.S.C. 632

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 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 Congress40 and such appropriate representatives of Federal

departments and agencies,41 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.

 40 The hearing at which any Member of Congress may provide testimony to 

the Committee on the Budget is commonly referred to as “Members’ Day”. 41 Generally, the Director of the Office of Management and Budget, or his 

designee, gives testimony first among Executive Branch agencies. The first 

to hear the Director’s testimony on the President’s Budget submission, by 

common practice, alternates each year between House and Senate Budget 

Committees.
Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 60

2 U.S.C. 632 §111

(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, 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.42

 42 Like the elastic clause found in section 301(b)(4) on the resolution text, 

this allows a wide variety of additional material to be included in the report 

on the budget. 
61 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 301

§111 2 U.S.C. 632

(f) ACHIEVEMENT OF GOALS FOR REDUCING UNEMPLOYMENT.—

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

of 1946,43 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 five-year 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.

(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.

 43 The Employment Act of 1946 is included herein, see Part IV, infra. The 

Act established, as part of the White House, the Council of Economic Advisors. The Council analyzes economic conditions and recommends policies to 

the President. The Act also created the Joint Economic Committee in Congress to study economic issues and make recommendations for consideration 

in the preparation of legislation.

Paragraph (1) of this subsection authorizes a budget resolution to specifically include a year by which unemployment levels recommended by the 

President under the Act may be achieved. Recent budget resolutions have not 

included a year by which Congress determines employment goals will be met, 

as provided for under this subsection. 
Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 62

2 U.S.C. 632 §111

(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.44

(3) Subject to periodic reestimation based on changed

economic conditions or technical estimates,45 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.

 44 The common “economic and technical assumptions” may be from any 

source, but the baseline prepared by the Congressional Budget Office, which 

includes this information, is used as the basis for the determinations 45 Though a common set of economic and technical assumptions is used to 

base the levels provided by the concurrent resolution on the budget, this subsection allows these estimates to be updated by the Committees on the Budget to take into account new information that may arise subsequent to the 

adoption of a budget resolution. The baseline prepared by the CBO may take 

these into account, but the final determination as to any updates implemented is made by the Committees on the Budget of the Houses of Congress. 
63 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 302

§112 2 U.S.C. 633

COMMITTEE ALLOCATIONS

SEC. 302. [2 U.S.C. 633] (a) COMMITTEE SPENDING ALLOCATIONS.—

(1) ALLOCATIONS 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—

(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 198546 and shall not exceed the

limits for each category set forth in section 251(c) of

that Act.47

(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

 46 Section 250(c)(4) of the Balanced Budget and Emergency Deficit Control 

Act of 1985 (see §201, infra), sets out these categories: “nonsecurity category”, 

“security category”, “discretionary category”, “revised security category” and 

“category” generally. After the passage of the Bipartisan Budget Act of 2013, 

only the “revised security” and “revised nonsecurity” categories are in use. 47 For section 251(c) of the Balanced Budget and Emergency Deficit Control 

Act of 1985, see §202, infra.
Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974 64

2 U.S.C. 633 §112

(ii) consistent with the categories specified in

section 250(c)(4)48 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.49

(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 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).

 48 See §201, infra. Section 250(c)(4) of BBEDCA defines the revised defense 

and nondefense categories currently in use for purposes of this allocation. 49 The amount submitted by the Budget Committee chair is advisory only

since it is not transmitted pursuant to a concurrent resolution on the budget.
65 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 302

§112 2 U.S.C. 633

(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;50

(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.

 50 In the House, clause 8 of rule XXI, applies all points of order under title 

III of the Budget Act to bills or joint resolutions not reported by a committee. 

See §371, infra. This clause does not apply to points of order such as section 

401, related to contract authority and new entitlement authority, or those 

found in subtitle B of title IV, which limits unfunded Federal mandates.
Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974 66

2 U.S.C. 633 §112

(g) PAY-AS-YOU-GO EXCEPTION IN THE HOUSE.—

(1) IN GENERAL.—(A)51 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, 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)52 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

 51 Subparagraph (A) of this subsection is commonly referred to as “the Rosty Exception #1”. Named for Rep. Dan Rostenkowski, (D-IL), long the Chairman of the Ways and Means Committee, it allows spending to be increased if 

offsetting revenue increases above the budget resolution levels are included. 52 Subparagraph (B) was added by the Budget Enforcement Act of 1997 to 

parallel subparagraph (A). “The Rosty Exception #2” allows revenues to be 

reduced below the budget resolution levels if spending is reduced to offset it. 
67 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 303

§113 2 U.S.C. 634

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-yougo 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.

CONCURRENT RESOLUTION ON THE BUDGET 

MUST BE ADOPTED BEFORE BUDGET-RELATED LEGISLATION IS 

CONSIDERED

SEC. 303.[2 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,53 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

 53 The Joint Explanatory Statement of Managers for the Balanced Budget 

Act of 1997 included the following statement: “The conferees intend to clarify 

that section 303(a) is a gross test which looks at whether any provision within the measure provides new budget authority, increases revenue, etc. It is 

not a net test that looks at the sum of changes in budget authority, increases 

in revenue, etc. as is the case with sections 302(f) and 311(a).” Despite this, 

the House Parliamentarian employs a “net” test which looks at the sum of 

changes in budget authority and revenues instead of applying it to “any provision”. The House Parliamentarian made this change during the 111th Congress.
Sec. 304 CONGRESSIONAL BUDGET ACT OF 1974 68

2 U.S.C. 635 §114

(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.54

(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.

PERMISSIBLE REVISIONS OF CONCURRENT 

RESOLUTIONS ON THE BUDGET

SEC. 304. [2 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.

 54 See also section 315 of the Budget Act, infra at §125. It allows a “rule” to 

use self-executing language to bring a bill or joint resolution into compliance 

with points of order under the Act. 
69 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 305

§115 2 U.S.C. 636

PROVISIONS RELATING TO THE CONSIDERATION OF 

CONCURRENT RESOLUTIONS ON THE BUDGET

SEC. 305. [2 U.S.C. 636] (a) PROCEDURE IN THE HOUSE OF 

REPRESENTATIVES; 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 4 of rule XIII of the

Rules of the House of Representatives,55 to move to proceed to the consideration of the concurrent resolution. The

motion is highly privileged56 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 Representatives57 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.58

 55 Clause 4 of rule XIII requires a report on a bill be available for three 

calendar days before it is considered. See §363, infra. In calculating availability, the day it is made public is considered the first day, and the day on which 

it is considered is the third day, with one full day separating these two days. 56 The more highly privileged a motion, the higher it is on the list of precedence: They are as follows: (1) motion to adjourn; (2) move to lay on the table; 

(3) move the previous question; (4) motion to postpone to a day certain; (5) 

motion to refer; (6) a motion to amend; (7) a motion to postpone indefinitely. 57 Clause 10(a) of rule XVIII (House Rules and Manual (113th Congress)) 

includes: “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.” See §368, infra. 58 A Special Order of Business (known as a “rule”) generally is adopted by 

the House and supersedes these Budget Act requirements for the consideration of the concurrent resolution on the budget. From the House Rules and 

Manual (113th Congress) (p. 1058): “In the 96th Congress, for the first time, 

the Rules Committee reported and the House adopted a special order permitting only certain designated amendments to be offered to a concurrent resolution on the budget (H. Res. 642, Apr. 23, 1980, p. 8789). The House has 

adopted similar ‘modified-closed rules’ for the consideration of concurrent 

resolutions on the budget in each subsequent Congress.”
Sec. 305 CONGRESSIONAL BUDGET ACT OF 1974 70

2 U.S.C. 636 §115

(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.59

(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.

(5) Consideration of any concurrent resolution on the 

budget by the House of Representatives shall be in the

Committee of the Whole,60 and the resolution shall be

considered for amendment under the five-minute rule in

accordance with the applicable provisions of rule XVIII of

the Rules of the House of Representatives.61 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.

 59 Colloquially known as the “Humphrey-Hawkins debate”, the chair and 

ranking member (or their designees) of the Joint Economic Committee typically control this time for debate. Under the structured rule often adopted by 

the House, this time is considered to be part of “general” debate. Additional 

time is usually provided for consideration of amendments. Amendments, 

normally, are full substitutes. Section 301(b)(1) allows the budget resolution 

to set economic and unemployment goals. See §111, supra. 60 Under clause 10 of rule XVIII of the House Rules, a concurrent resolution on the budget is considered as read and open to amendment at any point. 

Amendments are not in order if they cause the concurrent resolution to be 

mathematically inconsistent, not to contain the matter required by section 

301 of the Budget Act, or change its amount of public debt. See §368, infra. 61 Rule XVIII of the House provides for consideration of measures in “the 

Committee of the Whole House on the state of the Union.” See §368, infra.
71 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 305

§115 2 U.S.C. 636

(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 THE SENATE AFTER REPORT OF COMMITTEE; DEBATE; AMENDMENTS.62—

(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 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

 62 Section 310 of the Budget Act sets out the procedures regarding the reconciliation process See §120, infra. Subsection (e) of that section (“Procedure 

in the Senate”) refers to this section to set out by reference the procedures for 

consideration of reconciliation bills and reconciliation resolutions. This set of 

procedures is the same except reconciliation measures are limited in the Senate to 20 hours of debate rather than the fifty hours provided for in this subsection. During this twenty hours all amendments to the reconciliation bill, 

“debatable motions and appeals” are to be considered by the Senate. The provision does not make specific provision for the consideration of conference 

reports on reconciliation bills or resolutions. 
Sec. 305 CONGRESSIONAL BUDGET ACT OF 1974 72

2 U.S.C. 636 §115

shall be received. Such leaders, or either of them, may,

from the time under their control on the passage of the

concurrent resolution, 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.
73 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 305

§115 2 U.S.C. 636

(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 

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. 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.
Sec. 307 CONGRESSIONAL BUDGET ACT OF 1974 74

2 U.S.C. 638 §117

LEGISLATION DEALING WITH THE CONGRESSIONAL BUDGET 

MUST BE HANDLED BY THE BUDGET COMMITTEES

SEC. 306.63 [2 U.S.C. 637] (a) IN THE SENATE.64—In the

Senate, no bill, resolution, amendment, motion, or conference

report, dealing with any matter which is within the jurisdiction of the Committee on the Budget shall be considered

unless it is a bill or resolution which has been reported by the

Committee on the Budget (or from the consideration of which

such committee has been discharged) or unless it is an

amendment to such a bill or resolution.

(b) IN THE HOUSE OF REPRESENTATIVES.65—In the House of 

Representatives, no bill or joint resolution, or amendment 

thereto, or conference report thereon, dealing with any matter 

which is within the jurisdiction of the Committee on the Budget shall be considered unless it is a bill or joint resolution which 

has been reported by the Committee on the Budget (or from the 

consideration of which such committee has been discharged)66

or unless it is an amendment to such a bill or joint resolution.67

HOUSE COMMITTEE ACTION ON ALL APPROPRIATION 

BILLS TO BE COMPLETED BY JUNE 10

SEC. 307. [2 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.68

 63 Section 4(a)(4) of the Statutory Pay-As-You-Act of 2010 exempts language required to be added to “PAYGO Legislation” related to certain estimates from Congressional Budget Office from this section. See §284, infra. 64 See clause 1(e)(1) of Rule XXV of the Standing Rules of the Senate. 65 See clause 1(d) of rule X of the House Rules. See also a general discussion of the jurisdiction of the House Budget Committee infra at §380. 66 In the House, if the Committee on the Budget receives a referral of a bill 

or joint resolution because it includes matter within its jurisdiction, when 

such a special order of business reported by the Committee on Rules provides 

for its consideration, the Budget Committee is discharged from its consideration and this point of order does not lie against such measure. 67 The Bipartisan Budget Act of 2013 applied section 306 in the House to 

“joint resolutions”. See section 122 of the Bipartisan Budget Act of 2013, generally. See §268, infra. 68 This is a reference to the fiscal year for which a concurrent resolution on 

the budget is adopted, the budget resolution year, as is described in sections 

301, 303, and 308. While this is a directive for the House Appropriations 

Committee to follow, it does not give rise to points of order under appropriation Acts which have not been reported by the Committee by this date. A bill 

not reported by the Appropriations Committee of the House is not subject to a 

point of order under this section if considered on the House floor. 
75 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 308

§118 2 U.S.C. 639

REPORTS, SUMMARIES, AND PROJECTIONS OF CONGRESSIONAL 

BUDGET ACTIONS

SEC. 308. [2 U.S.C. 639] (a) REPORTS ON LEGISLATION 

PROVIDING NEW BUDGET AUTHORITY OR PROVIDING AN INCREASE OR DECREASE IN REVENUES OR TAX EXPENDITURES.—

(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 Office69—

(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

 69 Section 402 of the Budget Act requires CBO to prepare estimates of the 

costs of legislation for committee reports if “practicable”. See §132, infra.
Sec. 308 CONGRESSIONAL BUDGET ACT OF 1974 76

2 U.S.C. 639 §118

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 PayAs-You-Go Act of 2010, in estimates of the budgetary

effects of PAYGO Legislation.

(b) UP-TO-DATE TABULATIONS OF CONGRESSIONAL BUDGET 

ACTION.—

(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 up-to-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;
77 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 309

§119 2 U.S.C. 640

(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 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 1985.70

HOUSE APPROVAL OF REGULAR APPROPRIATION BILLS

SEC. 309. [2 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 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.

 70 Section 252(d)(5) of BBEDCA specifies the method by which scorekeeping guidelines are to be established or modified. It requires consultation 

among the budget principles: The House and Senate Budget Committees, the 

Congressional Budget Office and the Office of Management and Budget. 

Guidelines were published in the Joint Statement of Managers on the BEA in 

1990 and the BBA in 1997. This latter serves as the basis from which the 

current scorekeeping guidelines are derived. OMB’s A-11 Circular updates 

these, as needed, and included in thee President’s annual budget submission. 

The most up to date “Scorekeeping Guidelines” may be found in Part IV 

herein. 
Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974 78

2 U.S.C. 641 §120

RECONCILIATION

SEC. 310. [2 U.S.C. 641] (a) INCLUSION OF RECONCILIATION DIRECTIVES IN CONCURRENT RESOLUTION ON THE BUDGET.71—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 changed72 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—

 71 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.” 72 The Senate Parliamentarian has advised that concurrent resolutions on 

the budget may include directives to change the level of the public debt at 

any stage of the legislative process: Hence they may be included in a conference report even if the House-passed or Senate-passed concurrent resolutions 

do not have such directives in their text. 
79 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 310

§120 2 U.S.C. 641

(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 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)73 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

 73 Subparagraph (A) is colloquially known as the “fungibility rule”. It is 

used in a Committee’s compliance with its reconciliation instructions. 
Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974 80

2 U.S.C. 641 §120

(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)74(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 subsection, 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.

 74 Senate-only; it applied to the House by H. Con. Res. 95 (108th Congress). 

The fiscal year 2016 House-passed budget, H. Con. Res. 27 (114th Congress) 

applied it in the House, but it was inexplicably changed for S. Con. Res. 11.
81 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 310

§120 2 U.S.C. 641

(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.

(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
Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974 82

2 U.S.C. 641 §120

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.75

(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.

 75 This is a procedure by which a committee in the House may be made to 

come into compliance with the reconciliation instructions in a concurrent resolution on the budget. It was used for the House’s Seven-Year Balanced 

Budget Reconciliation Act of 1995 when the Committee on Agriculture was 

unable to comply. The Chairman of the Budget Committee, Rep. John Kasich, 

had legislative text included (by the Rules Committee) in order to bring the 

committee into compliance. The Senate does not have a corresponding procedure. It allows for “motions to recommit forthwith” when a reconciliation bill 

is on the floor by which a committee may be brought into compliance. This 

may also be achieved through the adoption of floor amendments. 
83 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 311

§121 2 U.S.C. 642

BUDGET-RELATED LEGISLATION MUST BE 

WITHIN APPROPRIATE LEVELS

SEC. 311. [2 U.S.C. 642] (a) ENFORCEMENT OF BUDGET 

AGGREGATES.—

(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—

(A) the enactment of that bill or resolution as reported;76

(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 con-

 76 Clause 8 of rule XXI of the House Rules applies this point of order to unreported measures.
Sec. 311 CONGRESSIONAL BUDGET ACT OF 1974 84

2 U.S.C. 642 §121

ference 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;77

(2) the adoption and enactment of that amendment;

or

(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.78

 77 Under House Rules, clause 8 of rule XXI applies this point of order to unreported measures. 78 In the House, section 311(c) of the Congressional Budget Act of 1974, 

known as the “Fazio Exception,” allows the aggregate spending level of budget authority or outlays to be breached if a committee’s 302(a) allocation is not 

breached. A measure providing budget authority within the allocation is exempt from the section 311 point of order. Though not originally intended, the 

Fazio Exception includes a Fazio Exception Anomaly in that it also provides 

an exception to revenue decreases that otherwise would cause a point of order 

under this section to be violated. Even if there are effects on budget authority, this does not necessitate the result that the bill “provides new budget authority”. A bill may reduce budget authority and not trigger the exception. 
85 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 312

§122 2 U.S.C. 643

DETERMINATIONS AND POINTS OF ORDER

SEC. 312. [2 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 198579 has been enacted.

(c) MAXIMUM DEFICIT AMOUNT POINT OF ORDER IN THE 

SENATE.—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.

 79 This refers to a joint resolution suspending budget enforcement due to a 

low-growth report prepared by CBO. It is not required to prepare this under 

section 258 pursuant to section 104(b) of the Budget Control Act of 2011. 
Sec. 313 CONGRESSIONAL BUDGET ACT OF 1974 86

2 U.S.C. 644 §123

(e) POINT 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.

(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. [2 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
87 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 313

§123 2 U.S.C. 644

considered extraneous;80 (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).81

(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 

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.

 80 Subparagraph (C) does not apply against reconciliation conference report. Under subsection (d), all other tests of extraneousness in subsection 

(b)(1) this one as it applies to provisions outside a Committee’s jurisdiction. 

The exception set out in paragraph (3) for subparagraph (C) under certain 

conditions, is not relevant to conference reports on reconciliation measures. 81 Section 310(g) of the Budget Act prohibits changes to Social Security. 

Subparagraph (F) of section 313 may be distinguished from that prohibition 

insofar as it allows a Senator to raise a point of order against a provision recommending such changes and cause it to be stricken. Under section 310(g) 

the point of order may be raised against consideration of the entire measure. 

If it is raised and upheld under that subsection, the entire measure is prohibited from consideration by the Senate. 
Sec. 313 CONGRESSIONAL BUDGET ACT OF 1974 88

2 U.S.C. 644 §123

(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)82, 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

 82 Of the six definitions of “extraneous” provisions, five are listed here. 

Subparagraph (C) in subsection (b) is not included: That subparagraph states 

a “provision that is not in the jurisdiction of the Committee with jurisdiction 

over said title or provision shall be considered extraneous”. As of 2015, the 

Senate Parliamentarian has advised that any provision in a reconciliation bill 

not within the jurisdiction of a Senate Committee given reconciliation directives, may cause a measure to not qualify for reconciliation privilege.
89 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 314

§124 2 U.S.C. 645

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 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.

ADJUSTMENTS

SEC. 314. [2 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.
Sec. 314 CONGRESSIONAL BUDGET ACT OF 1974 90

2 U.S.C. 645 §124

(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) of

the Balanced Budget and Emergency Deficit Control Act of

1985,83 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.

(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.

 83 Section 251(b)(2)(A) of: BBEDCA. See §§103, 201, and 202, infra.

“(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.”
91 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 314

§124 2 U.S.C. 645

(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

three-fifths 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 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 1985.84

(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

 84 Section 251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit 

Control Act of 1985 (BBEDCA) sets out the emergency designation. Section 

250(c) of that Act sets forth a definition of the term. See at §201 and §202, 

infra. Section 3(11) defines the terms “unanticipated” and “emergency” (see 

§103, supra) by referring to section 250(c) of BBEDCA. 
Sec. 315 CONGRESSIONAL BUDGET ACT OF 1974 92

2 U.S.C. 645a §125

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.85

EFFECT OF ADOPTION OF A SPECIAL ORDER OF BUSINESS IN THE 

HOUSE OF REPRESENTATIVES

SEC. 315. [2 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. In the 

case of a reported bill or joint resolution considered pursuant to 

a special order of business, a point of order under section 303 

shall be determined on the basis of 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.86

 85 This point of order prohibits the consideration of any measure causing 

budget authority for any year to exceed the discretionary spending limits set 

forth in section 251 of BBEDCA. Section 312(b)(1) includes a similar point of 

order that applies in the Senate against any measure that would “exceed any 

of the discretionary spending limits” in section 251(c) of BBEDCA. These discretionary spending limits are divided into defense and nondefense amounts

under the headings “revised security” and “revised nonsecurity” categories. 

See §122, supra, and §202, infra. 86 The second sentence of section 315 was added by section 122(11) of the 

Bipartisan Budget Act of 2013 to make a technical correction related to section 303 as it pertains to amending measures in order to change a bill reported by Committee to bring it into compliance prior to its consideration on the 

floor of the House. Prior to this change, since the 106th Congress, this language was included in the “Separate Orders” of the organizing resolutions 

from that Congress through the 113th Congress. For the Bipartisan Budget 

Act of 2013 generally, see §251, infra.
§131 2 U.S.C. 651

TITLE IV—ADDITIONAL

PROVISIONS TO IMPROVE FISCAL

PROCEDURES

PART A—GENERAL PROVISIONS

BUDGET-RELATED LEGISLATION 

NOT SUBJECT TO APPROPRIATIONS

SEC. 401. [2 U.S.C. 651] (a) CONTROLS ON CERTAIN 

BUDGET-RELATED 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 Code87) 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.

(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(a) 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

 87 Chapter 31 of Title 31 of the U.S. Code applies to the Public Debt.
Sec. 401 CONGRESSIONAL BUDGET ACT OF 1974 94

2 U.S.C. 651 §131

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 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)88 which is specifically exempted by

law from compliance with any or all of the provisions

 88 The Government Corporation Control Act of 1945 (31 U.S.C.9101-10) 

states the term “government corporation” means “a mixed-ownership Government corporation and a wholly-owned government corporation.” 25 entities are listed as government corporations (31 U.S.C. 9101). Examples: include: “Federal Deposit Insurance Corporation”, “Federal Home Loan Banks”, 

“Commodity Credit Corporation”, and the “Export-Import Bank”.
95 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 402

§132 2 U.S.C. 653

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.

(3) In the House of Representatives, subsections (a) and 

(b) shall not apply to new authority described in those subsections to the extent that a provision in a bill or joint resolution, or an amendment thereto or a conference report 

thereon, establishes prospectively for a Federal office or position a specified or minimum level of compensation to be 

funded by annual discretionary appropriations.

ANALYSIS BY THE CONGRESSIONAL BUDGET OFFICE

SEC. 402.89 [2 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 following 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.90

 89 Clause 3(c)(3) of Rule XIII of the House Rules requires committee reports 

include certain elements (see infra at §353): 

“(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.” 90 House Rule XIII requires committee reports include an estimate of the 

cost of legislation and may be met with a CBO estimate prepared under this 

section. S. Con. Res. 11 (114th Congress) requires CBO to prepare a macroeconomic cost estimate, similar to a requirement in clause 8 of rule XIII. For 

House rule XIII, see §363, infra. For S. Con. Res. 11, see Part IV, infra.
Sec. 403 CONGRESSIONAL BUDGET ACT OF 1974 96

88 STAT. 320 §133

JURISDICTION OF THE APPROPRIATIONS COMMITTEES

SEC. 403.91 (a) AMENDMENT OF HOUSE RULES.92—Clause 

2 of rule XI of the Rules of the House of Representatives is 

amended by redesignating paragraph (b) as paragraph (e) 

and by inserting after paragraph (a) the following new paragraphs:

“(b) Rescission of appropriations contained in appropriation Acts (referred to in section 105 of title 1, United States 

Code).

“(c) The amount of new spending authority described in 

section 401(c)(2) (A) and (B) of the Congressional Budget Act 

of 1974 which is to be effective for a fiscal year.

“(d) New spending authority described in section 

401(c)(2)(C) of the Congressional Budget Act of 1974 provided in bills and resolutions referred to the committee under 

section 401(b) (2) of that Act (but subject to the provisions of 

section 401(b) (3) of that Act).”

(b) AMENDMENT OF SENATE RULES.93—Subparagraph (c) 

of paragraph 1 of rule XXV of the Standing Rules of the 

Senate is amended to read as follows:

“(c) Committee on Appropriations, to which committee 

shall be referred all proposed legislation, messages, petitions, memorials, and other matters relating to the following 

subjects:

“1. Except as provided in subparagraph (r), appropriation of the revenue for the support of the Government.

“2. Rescission of appropriations contained in appropriation Acts (referred to in section 105 of title 1, United States 

Code).94

“3. The amount of new spending authority described in 

section 401(c) (2) (A) and (B) of the Congressional Budget 

Act of 1974 provided in bills and resolutions referred to the 

committee under section 401(b) (2) of that Act (but subject to 

the provisions of section 401(b)(3) of that Act).

“4. New advance spending authority described in section 

401(c)(2) (C) of the Congressional Budget Act of 1974 provided in bills and resolutions referred to the committee under section 401(b) (2) of that Act (but subject to the provisions of section 401(b) (3) of that Act).”

 91 Formerly section 404, this was later redesignated section 403, amending 

the jurisdiction of the Appropriations Committees. See §350 and §365, infra. 92 The jurisdiction of the House Appropriations Committee is in clause 1(b) 

of rule X of the Rules of the House, see infra at §350. 93 For the Senate Appropriations Committee’s jurisdiction, see clause 1(b) 

of Rule XXV of the Senate’s Standing Rules. See also §365, infra. 94 1 U.S.C. 105: “The style and title of all Acts making appropriations for 

the support of Government shall be as follows: ‘An Act making appropriations 

(here insert the object) for the year ending September 30 (here insert the calendar year).’” These are distinct from “permanent indefinite” appropriations.
97 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 406

§136 2 U.S.C. 656

STUDY BY THE GENERAL ACCOUNTING OFFICE OF FORMS OF 

FEDERAL FINANCIAL COMMITMENT THAT ARE NOT REVIEWED 

BY CONGRESS

SEC. 404. [2 U.S.C. 654] The General Accounting Office

shall study those provisions of law which provide mandatory spending95 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. [2 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.96

(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.

MEMBER USER GROUP

SEC. 406.97 [2 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.

 95 “Mandatory spending” is not defined in law, but it is the same as “direct 

spending” which is defined at section 250(a)(8) of BBEDCA. See §201, infra. 96 The U.S. Postal Service is classified as an “off-budget” Federal agency. 

While the Federal Reserve is a part of the Federal Government, its operations are not classified as part of the Federal Budget and is considered to be a 

“non-budget” entity for budgetary purposes. Transfers from the Federal Reserve are recorded as “revenues” and payments to it as budget authority and 

outlays. Its operations are paid for by investing in Federal securities. Fannie 

Mae and Freddie Mac (GSEs) are treated as on-budget by CBO but not OMB. 97 This Member User Group has never been convened or employed.
Sec. 421 CONGRESSIONAL BUDGET ACT OF 1974 98

2 U.S.C. 658 §141

PART B—FEDERAL MANDATES98

SEC. 421. [2 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,99 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;

 98 See the Unfunded Mandates Reform Act of 1995. (Pub. L. 104– 4).). See 

§251 et seq., infra. 99 5 U.S.C. 551(1): “§551. Definitions. For the purpose of this subchapter—

“(1) ‘agency’ means each authority of the Government of the United 

States, whether or not it is within or subject to review by another agency, 

but does not include—

“(A) the Congress;

“(B) the courts of the United States;

“(C) the governments of the territories or possessions of the United 

States;

“(D) the government of the District of Columbia; or except as to the 

requirements of section 552 of this title—

“(E) agencies composed of representatives of the parties or of representatives of organizations of the parties to the disputes determined by 

them;

“(F) courts martial and military commissions;

“(G) military authority exercised in the field in time of war or in occupied territory; or

“(H) functions conferred by sections 1738, 1739, 1743, and 1744 of title 12; subchapter II of chapter 471 of title 49; or sections 1884, 1891–

1902, and former section 1641(b)(2), of title 50, appendix;”.
99 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 421

§141 2 U.S.C. 658

(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—

(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
Sec. 421 CONGRESSIONAL BUDGET ACT OF 1974 100

2 U.S.C. 658 §141

(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 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
101 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 421

§141 2 U.S.C. 658

(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.100

(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) has the meaning of “rule” as defined in section

601(2) of title 5, United States Code.101

 100 31 U.S.C. 6501: Definitions

“(6) ‘local government’ means a unit of general local government, a school 

district, or other special district established under State law.” 101 31 U.S.C. 601. Definitions (from “Chapter 6. The Analysis of Regulatory 

Functions”): 

“(2) the term ‘rule’ means any rule for which the agency publishes a general notice of proposed rulemaking pursuant to section 553(b) of this title, or 

any other law, including any rule of general applicability governing Federal 

grants to State and local governments for which the agency provides an op-
Sec. 422 CONGRESSIONAL BUDGET ACT OF 1974 102

2 U.S.C. 658a §142

(11) SMALL GOVERNMENT.—The term “small government” means any small governmental jurisdictions defined in section 601(5) of title 5, United States Code,102

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.103

(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. [2 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;

 portunity for notice and public comment, except that the term ‘rule’ does not 

include a rule of particular applicability relating to rates, wages, corporate or 

financial structures or reorganizations thereof, prices, facilities, appliances, 

services, or allowances therefor or to valuations, costs or accounting, or practices relating to such rates, wages, structures, prices, appliances, services, or 

allowances;” 102 31 U.S.C. 601. Definitions: 

“(5) the term ‘small governmental jurisdiction’ means governments of cities, counties, towns, townships, villages, school districts, or special districts, 

with a population of less than fifty thousand, unless an agency establishes, 

after opportunity for public comment, one or more definitions of such term 

which are appropriate to the activities of the agency and which are based on 

such factors as location in rural or sparsely populated areas or limited revenues due to the population of such jurisdiction ...”. 103 31 U.S.C. 6501. Definitions. (from “Chapter 65. Intergovernmental Cooperation”): 

“(9) ‘State’ means a State of the United States, the District of Columbia, a 

territory or possession of the United States, and an agency, instrumentality, 

or fiscal agent of a State but does not mean a local government of a State.”
103 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 423

§143 2 U.S.C. 658b

(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)).104

SEC. 423. [2 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.

(c) REPORTS ON FEDERAL MANDATES.—Each report de- scribed 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.

 104 Section 3101 sets the employee tax “equal to 6.2 percent” of wages. Section 3111(a) sets the employer tax the same (“equal to 6.2 percent” of wages).
Sec. 423 CONGRESSIONAL BUDGET ACT OF 1974 104

2 U.S.C. 658b §143

(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 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.
105 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 424

§144 2 U.S.C. 658c

(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. [2 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.
Sec. 424 CONGRESSIONAL BUDGET ACT OF 1974 106

2 U.S.C. 658c §144

(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)105—

(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.106

(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.

 105 Section 421(5) defines the terms used in this subtitle. This subclause refers to a Federal intergovernmental mandate’s provision placing a limit on 

the Federal Government’s responsibility to provide funding to State, local, or 

tribal governments for a required program. 106 Section 425 of the Congressional Budget Act of 1974 establishes a point 

of order against consideration of a bill or joint resolution, an amendment to 

such, a motion, or a conference report that includes an unfunded intergovernmental mandate, but it does not apply to private sector mandates. Section 

426(a) of that Act sets forth a point of order against consideration of any special order of business (a “rule”) or other order waiving the point of order under section 425.
107 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 424

§144 2 U.S.C. 658c

(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) ESTIMATES 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.107

(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 

REPORTS.—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.

 107 While section 424 of the Budget Act does require estimates by the Congressional Budget Office of unfunded mandates, it does not establish a point 

of order against a measure to enforce the requirement that an estimate must 

be included under the section’s terms. If the CBO estimate is not available 

prior to the filing of the report, section 423(f) directs the committee to publish 

an estimate fulfilling the requirement in the Congressional Record as soon as 

it becomes available. See 152 CONG. REC. 10453, 10454, 10457, 10458, 109th 

CONG. 2d Sess. And also Deschler-Brown Precedents Ch. 41 § 30.1
Sec. 425 CONGRESSIONAL BUDGET ACT OF 1974 108

2 U.S.C. 658d §145

SEC. 425. [2 U.S.C. 658d] LEGISLATION SUBJECT TO POINT OF 

ORDER.

(a) IN GENERAL.—It shall not be in order in the Senate or

the House of Representatives to consider108—

(1) any bill or joint resolution109 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 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

 108 This section sets forth a point of order in the House and Senate against

unfunded intergovernmental mandates, not private sector mandates. 109 Repealed in the 112th Congress (H. Res. 5, Jan. 5, 2011). Clause 11 of 

rule XVIII provided an amendment proposing to specifically strike an unfunded mandate could be prohibited only by the terms of a rule.

“(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.”
109 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 425

§145 2 U.S.C. 658d

(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.
Sec. 425 CONGRESSIONAL BUDGET ACT OF 1974 110

2 U.S.C. 658d §145

(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

(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.110

 110 Similar to section 312 of the Budget Act, under this section the determination of the levels of spending and revenue of a point of order is the respon-
111 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 426

§146 2 U.S.C. 658e

SEC. 426. [2 U.S.C. 658e] PROVISIONS RELATING TO THE HOUSE 

OF REPRESENTATIVES.111

(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.112

(3) QUESTION OF CONSIDERATION.—As disposition of 

points of order under section 425 or subsection (a) of this 

section, the 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.

 sibility of Committee on the Budget of the Senate but the Parliamentarian of 

the Senate provides advice to the Presiding Officer who makes the final decision, subject to the call for a vote through an appeal of the Ruling. 111 Section 426(a) establishes a point of order against the consideration of 

any rule, formally known as a “special order of business”, waiving the application of section 425. The rule may provide for the consideration of a measure 

and may waive a violation of that section of the Budget Act. This automatically triggers twenty minutes of debate on the question as to whether the 

point of order should be waived. Time is evenly divided between a proponent 

and an opponent of the question. In the House, this is commonly known as 

“the unfunded mandates point-of-order.” It refers to any proposed procedure 

where a point of order can be raised against a rule waiving a point of order. 112 Under section 426(b)(2), a proponent must identify the specific language 

in the Rule waiving section 425. It is subject to the question of consideration. 

The House disposes of points of order under sections 425 or 426 through the 

question of consideration. The Member raising the point of order and a Member opposed each have 10 minutes: ‘‘Will the House now consider the [measure]?’’ A point of order does not lay against private sector mandates.
Sec. 428 CONGRESSIONAL BUDGET ACT OF 1974 112

2 U.S.C. 658g §148

SEC. 427. [2 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. [2 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 are—

(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.
113 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 428

§148 2 U.S.C. 658g

(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.
114

††
§152 2 U.S.C. 661a

TITLE V—CREDIT REFORM

SEC. 500. SHORT TITLE.

This title may be cited as the “Federal Credit Reform

Act of 1990”.113

SEC. 501. [2 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. [2 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.

 113 The Federal Credit Reform Act of 1990 (FCRA), enacted by Congress as 

part of the Omnibus Reconciliation Act of 1990 (which included the BEA of 

1990), added a new title V to the Congressional Budget Act of 1974. FCRA 

made several changes in how Congress measures the cost of credit programs. 

See §§150 et seq., infra. The most important change was to move from a cash 

accounting basis for the evaluation of the budgetary effects of credit programs 

to an accrual accounting method to more accurately reflect the cost of such 

programs to the government. Legislation has been introduced proposing reforms to the accounting methodology for loan and loan guarantee programs to 

incrementally, or completely, change the evaluation of credit risk. “Fair value 

accounting” is required in limited application in S. Con. Res. 11 (114th Congress), the concurrent resolution on the budget for fiscal year 2016. 
Sec. 502 CONGRESSIONAL BUDGET ACT OF 1974 116

2 U.S.C. 661a §152

(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 adjusting 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.
117 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 502

§152 2 U.S.C. 661a

(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 recourse, 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 CONGRESSIONAL BUDGET ACT OF 1974 118

2 U.S.C. 661b §153

SEC. 503. [2 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. [2 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.

(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—
119 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 504

§154 2 U.S.C. 661b

(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.114

(3) All collections and payments of the financing accounts shall be a means of financing.115

 114 Because financing accounts are nonbudget, the cash flows into and out 

of these accounts are not reflected in total outlays, receipts, or surplus/deficit. 115 “Means of Financing” are ways in which a budget deficit is financed or a 

budget surplus is used. A budget deficit may be financed by the Department 

of the Treasury (Treasury) (or agency) borrowing, by reducing Treasury cash 

balances, by the sale of gold, by seigniorage, by net cash flows resulting from 

transactions in credit financing accounts, by allowing certain unpaid liabilities to increase, or by other similar transactions. It is customary to separate 

total means of financing into “change in debt held by the public” (the government’s debt, which is the primary means of financing) and “other means of 

financing” (seigniorage, change in cash balances, transactions of credit financing accounts, etc.).
Sec. 505 CONGRESSIONAL BUDGET ACT OF 1974 120

2 U.S.C. 661d §155

(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.

SEC. 505. [2 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

Bank116 (hereinafter in this subsection referred to as the

 116 Congress created the Federal Financing Bank as a government corporation in 1973. Part of the Department of the Treasury, Congress established it 

to centralize and reduce the cost of federal borrowing, as well as federallyassisted borrowing from the public. It addresses the Federal budget management issues arising when off-budget financing enters the government securities market with offers of government-backed securities that compete 
121 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 505

§155 2 U.S.C. 661d

“Bank”) pursuant to section 405(b)) 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 405(b), 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—

(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;

 with Treasury securities. It has the authority to purchase obligations issued, 

sold, or guaranteed by a Federal agency to ensure fully guaranteed obligations are financed efficiently. 
Sec. 505 CONGRESSIONAL BUDGET ACT OF 1974 122

2 U.S.C. 661d §155

(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.
123 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 507

§157 2 U.S.C. 661f

SEC. 506. [2 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 Insurance, 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. [2 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.
124
2 U.S.C. 665-665e (repealed) §159

TITLE VI—BUDGET AGREEMENT

ENFORCEMENT PROVISIONS

[Repealed:117]

SUMMARY AND SHORT HISTORY OF TITLE VI

SEC. 601. DEFINITIONS AND POINT OF ORDER. (2 U.S.C. 665)118

Subsection (a) set forth the maximum deficit amounts, enforced 

through section 253 of BBEDC, through 1995. These were not an effective enforcement procedure subsequent to the enactment of the Budget 

Enforcement Act of 1990, though that section of BBEDCA is permanent 

law (subsequent to the enactment of the Budget Control Act of 2011, 

which repealed the sunset date). 

Subsection (b) set out a Senate point of order against breaching the 

maximum deficit amounts included in the title VI. That point of order no 

longer exists in the Senate. 

SEC. 602. COMMITTEE ALLOCATIONS AND ENFORCEMENT. (2 U.S.C. 665a)119

Subsections (a) and (b) had a similar function to section 302(a) and (b) of 

the Budget Act. Upon the repeal of this title in 1997, the allocations to 

Committees and the suballocations among the subcommittees of the Ap-

 117 The Balanced Budget Act of 1997, sec. 10118(a) (H.R. 2015; Public Law 

105—33; 111 Stat. 695; 2 USC §§665 to 665e) repealed Title VI of the Budget 

Act. This 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. This fiscal-year time period was later 

made permanent such that concurrent resolutions on the budget must currently cover a budget resolution year which is the year for which a budget 

resolution is adopted, and at least the following four fiscal years. Title VI also 

provided for adjustments in the budget resolution for such factors as emergencies, estimating differences, and tax compliance. 118 Codified as 2 U.S.C. 665. The Budget Enforcement Act of 1990 added 

section 601 (BEA of 1990) (Pub. L. 101–508, title XIII, §13111, Nov. 5, 1990, 

104 Stat. 1388–602). It was amended by the Omnibus Budget Reconciliation 

Act of 1993 (OBRA 1993; Pub. L. 103–66, title XIV, §14002(a), (b), Aug. 10, 

1993, 107 Stat. 683) which defined terms and provided for points of order in 

cases where measures would exceed discretionary spending limits.

A prior section 601 of the Budget Act was classified to section 11 of former 

Title 31, prior to repeal and reenactment as sections 1105(a)(15), 1106(b), and 

1108(d) of Title 31, Money and Finance, by Pub. L. 97–258 (no short title), 

§5(b), Sept. 13, 1982, 96 Stat. 1068, the first section of which enacted Title 31. 119 Codified as 2 U.S.C. 665a. The BEA of 1990 added section 602 of the 

Budget Act (Pub. L. 101–508, title XIII, §13111, Nov. 5, 1990, 104 Stat. 1388–

603). It was amended by OBRA 1993 (Pub. L. 103–322, title XXXI, 

§310001(f)(1), Sept. 13, 1994, 108 Stat. 2103) with provisions related to committee allocations and enforcement. 

A prior section 602 of the Budget Act was classified to section 11 of former 

Title 31, prior to repeal and reenactment as section 1106(a) of Title 31, Money and Finance, by Pub. L. 97–258, §5(b), Sept. 13, 1982, 96 Stat. 1068, the 

first section of which enacted Title 31.
Title VI CONGRESSIONAL BUDGET ACT OF 1974 126

§159 2 U.S.C. 665-665e (repealed)

propriations Committees were consolidated in title III of the Budget Act. 

The Budget Enforcement Act of 1997 codified subsection (e) of Title IV, 

the Pay-As-You-Go Exception in the House, as section 302(g).

SEC. 603. CONSIDERATION OF LEGISLATION BEFORE ADOPTION OF BUDGET RESOLUTION FOR THAT FISCAL YEAR (2 U.S.C. 665b)120

The Budget Enforcement Act of 1997 repealed this section and transferred its application by adding section 302(a)(5) to title III of the Budget Act. 

Though the BEA of 1997 rewrote subsections (a) and (b) of section 302, the 

text of (a)(5) largely followed that found in section 603 in title VI. See §112, 

infra. This section should not be confused with section 303 of the Budget Act 

which sets forth a point of order against budget-related measures, first increasing direct spending, and appropriations with certain exceptions, or making changes to revenue, in a year for which a budget resolution has not been 

adopted. For section 303, see §113, infra. 

SEC. 604. RECONCILIATION DIRECTIVES REGARDING PAY-AS-YOU-GO REQUIREMENTS. (2 U.S.C. 665c)121

Section 604, before its repeal, provided for a specialized reconciliation 

procedure in addition to that included in section 310 of the Budget Act. (See 

§120, infra.) The House Committee on the Budget was authorized to report 

out a concurrent resolution on the budget providing for a reconciliation instruction to House committees to raise revenue to address deficits that might 

have been caused by the enactment of spending or tax legislation. 

This authorization to establish or revise reconciliation was considered in 

the Senate as an addition to authority provided under section 304 of the 

Budget Act. 

Senator Jim Sasser (TN), Chairman of the Senate Budget Committee at 

the time noted the Budget Act allowed for additional reconciliation instructions because it includes “procedures already under section 304 of the Congressional Budget Act whereby Congress may revise budget resolutions and 

create new reconciliation instructions calling for additional deficit reduction.”122 Though it made clear that reconciliation directives could be revised 

or additional directives created, Senator Sasser, in the same floor statement, 

expressed doubt that this section would have the benefit of full reconciliation 

privilege. Even though this section provided the authority, it was never used. 

 120 Codified as 2 U.S.C. 665b. The BEA of 1990 added section 603 of the 

Budget Act (Pub. L. 101–508, title XIII, §13111, Nov. 5, 1990, 104 Stat. 1388–

605). It related to consideration of legislation before adoption of budget resolution for that fiscal year.

A prior section 603 of the Budget Act was classified to section 11 of former 

Title 31, prior to repeal and reenactment in section 1105(a)(1)–(14) of Title 

31, Money and Finance, by Pub. L. 97–258, §5(b), Sept. 13, 1982, 96 Stat. 

1068, the first section of which enacted Title 31. 121 Codified as 2 U.S.C. 665c. The BEA of 1990 added section 604 of the 

Budget Act (Pub. L. 101–508, title XIII, §13111, Nov. 5, 1990, 104 Stat. 1388–

605). It related to reconciliation directives regarding pay-as-you-go requirements.

A prior section 604 of the Budget Act was classified to section 11 of former 

Title 31, prior to repeal and reenactment in section 1105(a)(1)–(14) of Title 

31, Money and Finance, by Pub. L. 97–258, §5(b), Sept. 13, 1982, 96 Stat. 

1068, the first section of which enacted Title 31. 122 See 130 Cong. Record S17, 539, (daily edition, October 27, 1990).
127 CONGRESSIONAL BUDGET ACT OF 1974 Title VI

2 U.S.C. 665-665e (repealed) §159

SEC. 605. APPLICATION OF SECTION 311; POINT OF ORDER. (2 U.S.C. 665d)123

The Budget Enforcement Act of 1990 amended section 311 of the Budget 

Act and revised the method of enforcement by placing the point of order in 

this section. Also, in the Senate, section 605 set forth a point of order prohibiting measures from breaching the maximum deficit amounts. After its repeal 

by the Budget Enforcement Act of 1997, section 311 now is self-contained in 

terms of the point of order, which enforces it, and maximum deficit amounts 

are no longer an applicable form of budget enforcement. 

SEC. 606. 5-YEAR BUDGET RESOLUTIONS; BUDGET RESOLUTIONS MUST CONFORM 

TO BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985.

(2 U.S.C. 665e)124

Before being repealed by the Budget Enforcement Act of 1997, section 

606 of title VI did two major things: 

Subsection (a) required 5-year budget resolutions for each of years 1992 

through 1995. This was an error in drafting insofar as OBRA 1993 extended 

the temporary provisions of title VI through fiscal year 1998. 

Subsection (b) through (d) of the section generally applied provisions of 

the Balanced Budget and Emergency Deficit Control Act of 1985 to the budget resolution, such as requiring concurrent resolutions on the budget to adhere to the levels provided for in BBEDCA and for adjustments to be made to 

reflect adjustments made under that Act. 

SEC. 607. EFFECTIVE DATE.125

Before the Budget Enforcement Act of 1997 repealed section 607, it read: 

“This title shall take effect upon its date of enactment and shall apply to fiscal years 1991 to 1998.”

 123 Codified as 2 U.S.C. 665d. The BEA of 1990 added section 605 of the 

Budget Act. L. 101–508, title XIII, §13111, Nov. 5, 1990, 104 Stat. 1388–606,

related to application of section 642 of this title and points of order in Senate 

for measures exceeding specified maximum deficit amount.

A prior section 605 of the Budget Act was classified to section 11a of former 

Title 31, prior to repeal and reenactment in section 1109 of Title 31, Money 

and Finance, by Pub. L. 97–258, §5(b), Sept. 13, 1982, 96 Stat. 1068, the first 

section of which enacted Title 31. 124 Codified as 2 U.S.C. 665e. The BEA of 1990 added section 606 of the 

Budget Act (Pub. L. 101–508, title XIII, §13111, Nov. 5, 1990, 104 Stat. 1388–

606). It was amended by Pub. L. 104–121, title I, §103(c), Mar. 29, 1996, 110 

Stat. 849; Pub. L. 104–193, title II, §211(d)(5)(C), Aug. 22, 1996, 110 Stat. 

2192, related to 5-year budget resolutions and the requirement that budget 

resolutions conform to Balanced Budget and Emergency Deficit Control Act of 

1985.

A prior section 606 of the Budget Act was classified to section 661 of this title, prior to repeal by Pub. L. 99–177, title II, §223, Dec. 12, 1985, 99 Stat. 

1060. 125 Pub. L. 93–344, title VI, §607, as added by Pub. L. 101–508, title XIII, 

§13111, Nov. 5, 1990, 104 Stat. 1388–607, and amended by Pub. L. 103–66, 

title XIV, §14002(c)(3)(B), Aug. 10, 1993, 107 Stat. 684, provided that title VI 

of Pub. L. 93–344, enacting this subchapter, was effective Nov. 5, 1990, and 

was applicable to fiscal years 1991 to 1998, prior to repeal by Pub. L. 105–33, 

title X, §10118(a), Aug. 5, 1997, 111 Stat. 695.
Title VI CONGRESSIONAL BUDGET ACT OF 1974 128

§159 2 U.S.C. 665-665e (repealed)

Conference Report on the Balanced Budget Act of 1997 (P.L. 105-33) 126

“The House bill repeals title VI, which provided 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.

“The five-year scope of the resolution is permanently extended in sections 

11105 and 11106.127 The new adjustments are set forth in section 11113.128

The House bill repeals an unused provision in section 604 of the Budget Act, 

which provided the House Budget Committee with the authority to report a 

reconciliation directive providing for tax increases to offset legislation cutting 

taxes.”

“The Budget Enforcement Act of 1997: A Fact Sheet” (CRS)129

“The BEA of 1997 made permanent many of the temporary changes in 

Title VI of the 1974 Congressional Budget Act (by repealing Title VI, but incorporating its components into other sections of the 1974 act or the 1985 

Balanced Budget Act). In particular, budget resolutions must cover five fiscal 

years at a minimum and are enforced for the full 5-year period, and the modified procedures for making committee allocations and suballocations of 

spending under a budget resolution were retained (and revised further).”

Once upon a fiscal yearly, while I drafted, bleak and bleary,

Over many a stained and spurious section of ill-gotten score—

While I nodded, nearly napping, suddenly there came a slapping,

As of someone gamely lapping, lapping at the Congress door.

“‘Tis some lawyer,” I sputtered, “grappling at the Congress door—

Sold for grist or funds galore.”

“So what is all this spending for?”

Quoth the Craven: “Ever More.”

 126 House Report 105-217; Joint Explanatory Statement of Managers of the 

Conference Report on H.R. 2015, the Balanced Budget Act of 1997 (Public 

Law 105-33), 1997; p. 997-998. 127 Section 11105 and 11106 are references to the House-passed version of 

H.R. 2015 (Budget Enforcement Act of 1997). They refer to amendments 

those sections made to sections 301 and 302 of the Budget Act, respectively. 

They revised required contents of the budget resolution (section 301) and the 

allocations of budget authority to Congressional Committees (section 302) 

and made them permanent. By doing so, the amendments rendered parts of 

title VI inapplicable due to the temporary aspects of the title. 128 This is a reference to the House-passed version of H.R. 2015. Section 

1113 of that version added section 314 to the Budget Act, which remains, 

though amended. It applies the authority and provides parameters for various adjustments to the budget resolution, as required by budget resolutions 

and budget law. 129 Keith, Robert; “The Budget Enforcement Act of 1997: A Fact Sheet”; 

Congressional Research Service (97-930 GOV, January 23, 2004). 
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.”.130

 130 2 U.S.C. 190d currently reads as follows: 

“§190d. LEGISLATIVE REVIEW BY STANDING COMMITTEES OF THE SENATE AND THE 

HOUSE OF REPRESENTATIVES

“(a) SCOPE OF ASSISTANCE

“In order to assist the Congress in-

“(1) its analysis, appraisal, and evaluation of the application, administration, and execution of the laws enacted by the Congress, and

“(2) its formulation, consideration, and enactment of such modifications of or changes in those laws, and of such additional legislation, as 

may be necessary or appropriate, 

“each standing committee of the Senate and the House of Representatives 

shall review and study, on a continuing basis, the application, administration, and execution of those laws, or parts of laws, the subject matter of which 

is within the jurisdiction of that committee. 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 provision for evaluation after 

a defined period of time.

“(b) REPORTS TO THE SENATE AND THE HOUSE OF REPRESENTATIVES

“In each odd-numbered year beginning on or after January 1, 1973, each 

standing committee of the Senate shall submit, not later than March 31, to 

the Senate, and each standing committee of the House shall submit, not 

later than January 2, to the House, a report on the activities of that committee under this section during the Congress ending at noon on January 3 

of such year.

“(c) EXCEPTIONS

“The preceding provisions of this section do not apply to the Committees 

on Appropriations and the Budget of the Senate and the Committees on 

Appropriations, the Budget, House Oversight, Rules, and Standards of Official Conduct of the House.”
Sec. 702 CONGRESSIONAL BUDGET ACT OF 1974 130

88 STAT. 326 §162

REVIEW AND EVALUATION131

SEC. 702 [Repealed by Public Law 97-258]

 131 Public Law 97-258 repealed sec. 702 in 1982. See “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’”. Before it’s repeal, this section read as follows: 

Sec. 702.—Section 204 of the Legislative Reorganization Act of 1946 [31 

U.S.C. 1154] is amended to read as follows:

“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 or 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).”
131 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 703

§163 2 U.S.C. 623

CONTINUING STUDY OF ADDITIONAL BUDGET

REFORM PROPOSALS

SEC. 703. [2 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;

(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.
132
§166 88 STAT. 327

TITLE VIII—FISCAL AND 

BUDGETARY INFORMATION AND 

CONTROLS

[AMENDMENT TO LEGISLATIVE REORGANIZATION ACT OF 1970132]

[SEC. 801. (a) So much of title II of the Legislative Reorganization Act of 1970 (31 U.S.C. chapter 22) as precedes section 

204 thereof is amended to read as follows:]

[“TITLE II—FISCAL AND BUDGETARY INFORMATION 

AND CONTROLS]

[“PART 1—FISCAL, BUDGETARY, AND PROGRAM-RELATED 

DATA AND INFORMATION]

[“FEDERAL FISCAL, BUDGETARY, AND PROGRAM-RELATED

DATA AND INFORMATION SYSTEMS]

[“SEC. 201. The Secretary of the Treasury and the Director 

of the Office of Management and Budget, in cooperation with 

the Comptroller General of the United States, shall develop, 

establish, and maintain, for use by all Federal agencies, standardized data processing and information systems for fiscal, 

budgetary, and program-related data and information. The development, establishment, and maintenance of such systems 

shall be carried out so as to meet the needs of the various 

branches of the Federal Government and, insofar as practicable, of governments at the State and local level.]

[“STANDARDIZATION OF TERMINOLOGY, DEFINITIONS, CLASSIFICATIONS, AND CODES FOR FISCAL, BUDGETARY, AND PROGRAM-RELATED DATA AND INFORMATION]

[“SEC. 202. (a)(1) The Comptroller General of the United 

States, in cooperation with the Secretary of the Treasury, the 

Director of the Office of Management and Budget, and the Director of the Congressional Budget Office, shall develop, establish, maintain, and publish standard terminology, definitions, 

classifications, and codes for Federal fiscal, budgetary, and 

program-related data and information. The authority contained 

in this section shall include, but not be limited to, data and information pertaining to Federal fiscal policy, revenues, re-

 132 Section 801 and section 801 of Title VIII were repealed by Public Law 

97-258; “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’”. This law was enacted on September 

13, 1982. Sections 801 and 802 were codified in sections 1104, 1112, and 1113 

of title 31 of the United States Code. See §§304, 312, and 313, infra.
Sec. 801 CONGRESSIONAL BUDGET ACT OF 1974 134

88 STAT. 328 §166

ceipts, expenditures, functions, programs, projects, and activities. Such standard terms, definitions, classifications, and 

codes shall be used by all Federal agencies in supplying to the

Congress fiscal, budgetary, and program-related data and information.]

[“(2) The Comptroller General shall submit to the Congress, 

on or before June 30,1975, a report containing the initial 

standard terminology, definitions, classifications, and codes 

referred to in paragraph (1), and shall recommend any legislation necessary to implement them. After June 30, 1975, the 

Comptroller General shall submit to the Congress additional 

reports as he may think advisable, including any recommendations for any legislation he may deem necessary to further the 

development, establishment, and maintenance, modification, 

and executive implementation of such standard terminology, 

definitions, classifications, and codes.]

[“(b) In carrying out this responsibility, the Comptroller 

General of the United States shall give particular consideration 

to the needs of the Committees on the Budget of the House and 

Senate, the Committees on Appropriations of the House and 

Senate, the Committee on Ways and Means of the House, the 

Committee on Finance of the Senate, and the Congressional 

Budget Office.]

[“(c) The Comptroller General of the United States shall 

conduct a continuing program to identify and specify the needs 

of the committees and Members of the Congress for fiscal, 

budgetary, and program-related information to support the objectives of this part.]

[“(d) The Comptroller General shall assist committees in 

developing their information needs, including such needs expressed in legislative requirements, and shall monitor the various recurring reporting requirements of the Congress and 

committees and make recommendations to the Congress and 

committees for changes and improvements in their reporting 

requirements to meet congressional information needs ascertained by the Comptroller General, to enhance their usefulness 

to the congressional users and to eliminate duplicative or unneeded reporting.]

[“(e) On or before September 1, 1974, and each year thereafter, the Comptroller General shall report to the Congress on 

needs identified and specified under subsection (c); the relationship of these needs to the existing reporting requirements; 

the extent to which the executive branch reporting presently 

meets the identified needs; the specification of changes to 

standard classifications needed to meet congressional needs; 

the activities, progress and results of his activities under subsection]
135 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 801

§166 88 STAT. 329

[(d) ; and the progress that the executive branch has made 

during the past year.]

[“(f) On or before March 1, 1975, and each year thereafter, 

the Director of the Office of Management and Budget and the 

Secretary of the Treasury shall report to the Congress on their 

plans for addressing the needs identified and specified under 

subsection (c), including plans for implementing changes to 

classifications and codes to meet the information needs of the 

Congress as well as the status of prior year system and classification implementations.]

[“AVAILABILITY TO AND USE BY THE CONGRESS AND STATE 

AND LOCAL GOVERNMENTS OF FEDERAL FISCAL, BUDGETARY, 

AND PROGRAM-RELATED DATA AND INFORMATION]

[“SEC. 203. (a) Upon request of any committee of either 

House, of any joint committee of the two Houses, of the Comptroller General, or of the Director of the Congressional Budget 

Office, the Secretary of the Treasury, the Director of the Office 

of Management and Budget, and the heads of the various executive agencies shall—

[“(1) furnish to such committee or joint committee, the 

Comptroller General, or the Director of the Congressional 

Budget Office information as to the location and nature of 

available fiscal, budgetary, and program-related data and 

information;

[“(2) to the extent practicable, prepare summary tables 

of such data and information and any related information 

deemed necessary by such committee or joint committee, 

the Comptroller General, or the Director of the Congressional Budget Office; and

[“(3) furnish to such committee or joint committee, the 

Comptroller General, or the Director of the Congressional 

Budget Office any program evaluations conducted or commissioned by any executive agency.]

[“(b) The Comptroller General, in cooperation with the Director of the Congressional Budget Office, the Secretary of the 

Treasury, and the Director of the Office of Management and 

Budget, shall—]

[“(1) develop, establish, and maintain an up-to-date inventory and directory of sources and information systems 

containing fiscal, budgetary, and program-related data and 

information and a brief description of their content;]

[“(2) provide, upon request, assistance to committees, 

joint committees, and Members of Congress in securing 

Federal fiscal, budgetary, and program-related data and information from the sources identified in such inventory and 
Sec. 801 CONGRESSIONAL BUDGET ACT OF 1974 136

88 STAT. 329 §166

directory; and]

[“(3) furnish, upon request, assistance to committees 

and joint committees of Congress and, to the extent practicable, to Members of Congress in appraising and analyzing 

fiscal, budgetary, and program-related data and information secured from the sources identified in such inventory and directory.]

[“(c) The Comptroller General and the Director of the Congressional Budget Office shall, to the extent they deem necessary, develop, establish, and maintain a central file or files of 

the data and information required to carry out the purposes of 

this title. Such a file o files shall be established to meet recurring requirements of the Congress for fiscal, budgetary, and 

program-related data and information and shall include, but 

not be limited to, data and information pertaining to budget 

requests, congressional authorizations to obligate and spend, 

apportionment and reserve actions, and obligations and expenditures. Such file or files and their indexes shall be maintained in such a manner as to facilitate their use by the committees of both Houses, joint committees, and other congressional agencies through modern data processing and communications techniques.]

[“(d) The Director of the Office of Management and Budget, 

in cooperation with the Director of the Congressional Budget 

Office, the Comptroller General, and appropriate representatives of State and local governments, shall provide, to the extent practicable. State and local governments such fiscal, budgetary, and program-related data and information as may be 

necessary for the accurate and timely determination by these 

governments of the impact of Federal assistance upon their 

budgets.”]

[(b) The table of contents of the Legislative Reorganization 

Act of 1970 is amended by striking out—

[“TITLE II—FISCAL CONTROLS]

[“PART 1—BUDGETARY AND FISCAL INFORMATION AND DATA]

“Sec. 201. Budgetary and fiscal data processing system.

“Sec. 202. Budget standard classifications.

“Sec. 203. Availability to Congress of budgetary, fiscal, and related data.”

and inserting in lieu thereof—

[“TITLE II—FISCAL AND BUDGETARY INFORMATION 

AND CONTROLS]

[“PART1—FISCAL, BUDGET, AND PROGRAM-RELATED DATA AND INFORMATION]

“Sec. 201. Federal fiscal, budgetary, and program-related data and in-
137 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 802

§167 88 STAT. 330

formation systems.

“Sec. 202. Standardization of terminology, definitions, classifications, and 

codes for fiscal, budgetary, and program-related data and information.

“Sec. 203. Availability to and use by the Congress and State and local 

governments of Federal fiscal, budget, and program-related data and information.”

[CHANGES IN FUNCTIONAL CATEGORIES]

[SEC. 802. Any change in the functional categories set forth 

in the Budget of the United States Government transmitted 

pursuant to section 201 of the Budget and Accounting Act, 

1921, shall be made only in consultation with the Committees 

on Appropriations and the Budget of the House of Representatives and Senate.]133

 133 Functional Categories have been created for budget resolutions, in addition to the ones included in first budget resolution in fiscal year 1976: 

H. Con. Res. 393, House-passed budget resolution (fiscal year 2005): 

“Homeland Security (100)”.

S. Con. Res. 21 (fiscal year 2008): “Overseas Deployments and Other Activities (970)”.

S. Con. Res. 70 (fiscal year 2009): “Overseas Deployments and Other Activities (970)”.

S. Con. Res. 13 (fiscal year 2010): “Overseas Deployments and Other Activities (970)”.

H. Con. Res. 34, House-passed budget resolution (fiscal year 2012): “Global 

War on Terrorism and related activities (970)”.

H. Con. Res. 112, House-passed budget resolution (fiscal year 2013): “Global War on Terrorism” but did not include the function number in its text.

H. Con. Res. 25, House-passed budget resolution (fiscal year 2014):

H. Con. Res. 96, House-passed budget resolution (fiscal year 2015): “Government-wide savings (930)” and “Overseas Contingency Operations/Global 

War on Terrorism (970)”.

H. Con. Res. 27, House-passed budget resolution (fiscal year 2016): “Government-wide savings (930)” and “Overseas Contingency Operations/Global 

War on Terrorism (970)”.
138
§171 88 STAT. 330

TITLE IX—MISCELLANEOUS

PROVISIONS; EFFECTIVE DATES

AMENDMENT TO THE RULES OF THE HOUSE

SEC. 901.134 (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,”.

 134 This section conforms the Rules of the House to the establishment of the 

Committee on the Budget of the House under section 101 of the Budget Act. 

The references in this section are to the House Rules before their recodification by H. Res. 5, adopted on January 6, 1999, as the organizing resolution of 

the 106th Congress. See House Rules and Manual, page xv, for a conversion 

chart indicating the sections as recodified. 
Sec. 904 CONGRESSIONAL BUDGET ACT OF 1974 140

2 U.S.C. 621 note §174

CONFORMING AMENDMENTS 

TO STANDING RULES OF THE SENATE135

SEC. 902. 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.”

AMENDMENTS TO LEGISLATIVE REORGANIZATION ACT 1946

SEC. 903. (a) Section 134(c) of the Legislative Reorganization Act of 1946 (2. U.S.C. 190b(b)136 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)) is amended 

by striking out “Committee on Appropriations of the Senate 

and the Committees on Appropriations,” and inserting in lieu 

thereof “Committees on Appropriations and the Budget of the 

Senate and the Committees on Appropriations, the Budget,”.

EXERCISE OF RULEMAKING POWERS

SEC. 904. [2 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. 

 135 Paragraph 1 of Rule XXV, Senate Standing Rules sets jurisdiction of

Senate Committees, including the Senate Committees on Budget, Finance, 

and Governmental Affairs. Section 902 made conforming amendments. 136 S. Res. 274, 96th Congress, 1st Session, Section 2(a), 125 Congressional 

Record, S16,588, S16,602 (November 14, 1979), repealed 2 U.S.C. 190b.
141 CONGRESSIONAL BUDGET ACT OF 1974 Sec. 904

§174 88 STAT. 331

(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 

three-fifths 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), 258B(f)(1), 258B(h)(1), 

258B(h)(3), 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 three-fifths 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 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, 2002.137

 137 Section 3201 of S. Con. Res. 11 (114th Cong.) extended the date to September 30, 2025. “Notwithstanding any provision of the Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.), subsections (c)(2) and (d)(3) of section 

904 of the Congressional Budget Act of 1974 (2 U.S.C. 621 note) shall remain 

in effect for purposes of Senate enforcement through September 30, 2025.”
Sec. 906 CONGRESSIONAL BUDGET ACT OF 1974 142

88 STAT. 332 §176

[SECTION 905 REPEALED]

[EFFECTIVE DATES] 138

[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).139

[(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.]

[SECTION 906 REPEALED]

[APPLICATION OF CONGRESSIONAL BUDGET PROCESS 

TO FISCAL YEAR 1976]

[SEC. 906. If the Committee on the Budget of the House of Representatives and the Senate both agree that it is feasible to report and act on a concurrent resolution on the budget referred to in section 301(a), or to apply any 

provision of title III or section 401 or 402, for the fiscal year beginning on 

July 1, 1975, and submit reports of such agreement to their respective Houses, then to the extent and in the manner specified in such reports, the provisions so specified in section 202(f) shall apply with respect to such fiscal year. 

If any provision so specified contains a date, such reports shall also specify a 

substitute date.]

 138 Sec. 10120 of Budget Enforcement Act of 1997 (105th Cong.) repealed 

sections 905 and 906. The BEA 1997 “repeals two obsolete sections in the 

Budget Act: the original effective dates for the Budget Act in section 905 and 

a special rule relating to the applicability of the Act for Fiscal Year 1976.” 

(Joint Explanatory Statement of the Managers of the Conference Committee; 

H. Rept. 105-217. July 29, 1997.) The BEA of 1997 is the short title X of the 

Balanced Budget Act of 1997 (Public Law 105-33), the reconciliation bill enacted pursuant to the Bipartisan Budget Agreement of that year between the 

Leadership of Congress (the Speaker of the House, Rep. Newt Gingrich, Majority Leader of the Senate, Senator Robert Dole, and Minority Leader of the 

Senate, Senator Thomas Daschle) and President William Clinton. 139 Speaker of the House, Rep. Carl Albert and the President Pro Tem, Senator James Eastland, appointed Alice Rivlin the first CBO Director on February 25, 1975 (93rd Cong., Cong. Rec., p. 4151).
§180 88 STAT. 332

TITLE X—IMPOUNDMENT

CONTROL

PART A—GENERAL PROVISIONS140

DISCLAIMER

SEC. 1001. [2 U.S.C. 681] Nothing contained in this

Act,141 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.

 140 Title X of the Congressional Budget and Impoundment Control Act of 

1974 addressed the issue of impoundment. The term “impoundment” means 

the refusal of the President to spend Congressionally-appropriated, and legally enacted, budget authority. Funds were first impounded by President 

Thomas Jefferson, a practice followed by subsequent Presidents. Congress 

has granted the president the authority not to spend funds if it has appropriated more funds than necessary to accomplish its purposes. 

The Impoundment Act of 1974 of 1974 notwithstanding, the power to impound is limited by the U.S. Constitution. Even had Congress not enacted the 

Impoundment Control Act of 1974, the U.S. Supreme Court found in Train v. 

City of New York, 420 U.S. 35, 95 S. Ct. 839, 43 L. Ed. 2d 1 (1975), that President Richard M. Nixon could not order the impoundment of certain amounts 

of environmental protection funds for the Federal Water Pollution Control 

Act Amendments of 1972, a program with which he disagreed and which was 

enacted by Congress over his veto. The court held that the president does not 

have the power to override the will of Congress by refusing to expend 

amounts on a program with which he disagrees under the terms of the Constitution as well as this title of the Impoundment Control Act of 1974. 141 Section 1(a) of the Congressional Budget and Impoundment Control Act 

of 1974 provides that “Parts A and B of title X may be cited as the ‘Impoundment Control Act of 1974’”. See supra at §101.
Sec. 1011 IMPOUNDMENT CONTROL ACT OF 1974 144

2 U.S.C. 682 §183

AMENDMENT TO ANTIDEFICIENCY ACT

SEC. 1002.142

[Repealed]

REPEAL OF EXISTING IMPOUNDMENT REPORTING PROVISION

SEC. 1003.143

[Repealed]

PART B—CONGRESSIONAL CONSIDERATION OF 

PROPOSED RESCISSIONS, RESERVATIONS, AND 

DEFERRALS OF BUDGET AUTHORITY

DEFINITIONS

SEC. 1011. [2 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;

(3) “rescission bill” means a bill or joint resolution

which only rescinds 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

 142 Section 1002 was repealed by Public Law 97-258. The Antideficiency Act 

was codified in the 19th Century. 31 U.S.C. 1512. et seq. P.L. 97-258 (no short 

title) reorganized budget-related provisions of law. US Code, Title 31. 143 This was repealed at the same time as section 1002. See §181, supra.
145 IMPOUNDMENT CONTROL ACT OF 1974 Sec. 1012

§184 2 U.S.C. 683

(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. [2 U.S.C. 683] (a) TRANSMITTAL OF SPECIAL 

MESSAGE.—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 the decision to effect the proposed rescission

or the reservation, and to the maximum extent practicable,
Sec. 1013 IMPOUNDMENT CONTROL ACT OF 1974 146

2 U.S.C. 684 §185

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. [2 U.S.C. 684] (a) TRANSMITTAL OF SPECIAL 

MESSAGE.—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.
147 IMPOUNDMENT CONTROL ACT OF 1974 Sec. 1014

§186 2 U.S.C. 685

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 POLICY144.—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

(3) as specifically provided by law.

No officer or employee of the United States may defer any

budget authority for any other purpose.145

(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. [2 U.S.C. 685] (a) DELIVERY TO HOUSE AND 

SENATE.—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—

 144 This text is used in the Antideficiency Act (31 USC Sec. 1512(c)(1)). (See 

infra at §330) to preclude Presidents from implementing “policy” impoundments, but to allow “programmatic”' impoundments. 145 In City of New Haven v. United States, 809 F.2d 900 (D.C. Cir. 1987), 

this section was held unconstitutional since it included a Legislative Veto 

(INS v. Chadha, 462 U.S. 919 (1983)). The Balanced Budget and Emergency 

Deficit Control Reaffirmation Act of 1987 amended it with the instant text.
Sec. 1014 IMPOUNDMENT CONTROL ACT OF 1974 148

2 U.S.C. 685 §186

(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, RESERVATIONS, 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 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.
149 IMPOUNDMENT CONTROL ACT OF 1974 Sec. 1016

§188 2 U.S.C. 687

REPORTS BY COMPTROLLER GENERAL

SEC. 1015. [2 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.146

SUITS BY COMPTROLLER GENERAL

SEC. 1016. [2 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 made available for

obligation, and such court is hereby expressly empowered to

enter in such civil action, against any department, agency,

 146 The Comptroller General has not made a report under this subsection.
Sec. 1017 IMPOUNDMENT CONTROL ACT OF 1974 150

2 U.S.C. 688 §189

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. [2 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.
151 IMPOUNDMENT CONTROL ACT OF 1974 Sec. 1017

§189 2 U.S.C. 688

(c) FLOOR CONSIDERATION IN THE HOUSE.147—

(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 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

 147 Under the Impoundment Control Act, the President may propose to rescind all or part of the budget authority Congress has appropriated for a particular program. To propose a rescission, the President must send a special 

message to Congress detailing the amount of the proposed rescission, the 

reasons for it, and a summary of the effects the rescission would have on the 

programs involved. Sec. 1012(a) of the Impoundment Control Act. Under the 

Act, Congress then has 45 days within which to approve the proposed rescission by a “rescission bill” that must be passed by both Houses. Sec. 1012(b) of 

the Impoundment Control Act. If the rescission bill is not approved, the President must allow the full amount appropriated to be spent.

The 45-day period prescribed by the Act applies only to the initial consideration of the bill; the consideration of a conference report on such a bill is 

subject only to the general rules of the House relating to conference reports 

and is not prevented by the expiration of the 45-day period following the initial consideration of the bill. [See House Manual –Sec. 1130(6A)].

The Impoundment Control Act sets forth detailed procedures expediting 

and governing the consideration of a rescission bill introduced under its provisions. Sec. 1017(a)-(c) of the Impoundment Control Act. These procedures 

are rarely invoked in the modern practice, and the “rescission bill” referred to 

in the Act is not the only means by which the House may take action on such 

a matter. The House may address the question through other legislation 

without following the procedures set forth in section 1017 of the Impoundment Control Act of 1974 (from House Practice, 108th Congress, page 194).
Sec. 1017 IMPOUNDMENT CONTROL ACT OF 1974 152

2 U.S.C. 688 §189

(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 which the Senate is not in session)

is not in order. Debate on any such motion to recommit
153 IMPOUNDMENT CONTROL ACT OF 1974 Sec. 1017

§189 2 U.S.C. 688

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 receive
Sec. 1021 LINE ITEM VETO ACT OF 1996 154

2 U.S.C. 691 §191

CONSTITUTIONALITY OF 

THE LINE ITEM VETO ACT OF 1996

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, held the Line Item Veto Act of 1996, Pub. L. 104-130, 

April 9, 1996, 110 Stat. 1200, part C of title X of the Congressional Budget and Impoundment Control Act of 1974, to 

be unconstitutional as a violation of the Presentment Clause 

of the United States Constitution (Art. I, §7, cl. 2).

PART C—LINE ITEM VETO

LINE ITEM VETO AUTHORITY

SEC. 1021 [2 U.S.C. 691] (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 not harm the national interest; and

(iii) 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

(3) use the definitions contained in section 1026 in

applying this part to the specific provisions of such law.
155 LINE ITEM VETO ACT OF 1996 Sec. 1022

§192 2 U.S.C. 691a

(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.

SPECIAL MESSAGES

SEC. 1022. [2 U.S.C. 691a] (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.148

(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

 148 Joint Statement of Managers on the Line Item Veto Act of 1996: “Section 1022 provides that, if the President cancels provisions within a law, a 

special message must be submitted to Congress. A separate special message 

must be submitted for each law from which a cancellation is made. Similar to 

the requirements in section 1012 of the Impoundment Control Act of 1974, 

the conference report requires that the President's special message include 

relevant supporting material about each cancellation and its budgetary impact. The conferees intend this requirement to ensure that the Congress and 

the public receive sufficient information with which to judge the President's 

action.”
Sec. 1023 LINE ITEM VETO ACT OF 1996 156

2 U.S.C. 691b §193

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 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.

CANCELLATION EFFECTIVE UNLESS DISAPPROVED

SEC. 1023. [2 U.S.C. 691b] (a) IN GENERAL.—The cancellation of any dollar amount of discretionary budget authority,

item of new direct spending, or limited tax benefit149 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.

 149 The definition of “limited tax benefit” is set forth in section 1026(9) of 

this Act. Clause 9 of rule XXI of the Rules of the House also defines this term 

for purposes of the point of order set forth in that clause.
157 LINE ITEM VETO ACT OF 1996 Sec. 1024

§194 2 U.S.C. 691c

(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.

DEFICIT REDUCTION

SEC. 1024. [2 U.S.C. 691c] (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.

(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.
Sec. 1025 LINE ITEM VETO ACT OF 1996 158

2 U.S.C. 691d §195

(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) EXCEPTIONS.—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.

EXPEDITED CONGRESSIONAL CONSIDERATION

OF DISAPPROVAL BILLS

SEC. 1025. [2 U.S.C. 691d] (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.150

(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.

 150 On November 13, 1997, President William J. Clinton vetoed H.R. 2631, 

the first disapproval bill to reach his desk under the provisions of the Line 

Item Veto Act of 1996. The House voted to override on Feb. 5, 1998 (347-69), 

and the Senate voted to do so on Feb. 25, 1998 (78-20). Hence the disapproval 

bill was enacted over the President's veto (P.L. 105-159).
159 LINE ITEM VETO ACT OF 1996 Sec. 1025

§195 2 U.S.C. 691d

(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 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.—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
Sec. 1025 LINE ITEM VETO ACT OF 1996 160

2 U.S.C. 691d §195

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 five minute 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 (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.

(2) 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.

(3) 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.
161 LINE ITEM VETO ACT OF 1996 Sec. 1025

§195 2 U.S.C. 691d

(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) AMENDMENT 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.

(B) WAIVER OR APPEAL.—An affirmative vote of

three-fifths 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
Sec. 1025 LINE ITEM VETO ACT OF 1996 162

2 U.S.C. 691d §195

(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

majority 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.
163 LINE ITEM VETO ACT OF 1996 Sec. 1025

§195 2 U.S.C. 691d

(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.
Sec. 1026 LINE ITEM VETO ACT OF 1996 164

2 U.S.C. 691e §196

DEFINITIONS

SEC. 1026. [2 U.S.C. 691e] As used in this part:

(1) APPROPRIATIONS LAW.—The term “appropriation

law” means an Act referred to in section 105 of title 1, 

United States Code, including any general or special appropriation Act, or any Act making supplemental, deficiency, or continuing appropriations, that has been signed into

law pursuant to Article I, section 7, of the Constitution of

the United States.

(2) CALENDAR DAY.—The term “calendar day” means a

standard 24-hour period beginning at midnight.

(3) CALENDAR DAYS OF SESSIONS.—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—
165 LINE ITEM VETO ACT OF 1974 Sec. 1026

§196 2 U.S.C. 691e

(A) the title of which is as follows: “A bill disapproving the cancellations transmitted by the President on 

_______,” the blank space being filled in with the

date of transmission of the relevant special message

and the public law number to which the message relates;

(B) which does not have a preamble; and

(C) which provides only the following after the enacting clause: “That Congress disapproves of cancellations _______”, 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 _______”, the blank space being filled in with the

appropriate date, “regarding _______.”, the blank

space being filled in with the public law number to

which the special message relates.

(7) DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHORITY.—(A) Except as provided in subparagraph (B),

the term “dollar amount of discretionary budget authority” means the entire dollar amount of budget authority—

(i) specified in an appropriation law, or the entire 

dollar amount of budget authority 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.
Sec. 1026 LINE ITEM VETO ACT OF 1996 166

2 U.S.C. 691e §196

(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

(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
167 LINE ITEM VETO ACT OF 1974 Sec. 1026

§196 2 U.S.C. 691e

(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 “revenue 

losing 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 

(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 LINE ITEM VETO ACT OF 1996 168

2 U.S.C. 691f §197

IDENTIFICATION OF LIMITED TAX BENEFITS

SEC. 1027 [2 U.S.C. 691f] (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 

_______ apply to ______.”, 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 bene-
169 LINE ITEM VETO ACT OF 1996 Sec. 1027

§197 2 U.S.C. 691f

fit in that law, if any, identified in such separate section;

or 

(2) without a separate section described in subsection 

(b)(2), then the President may use the authority granted in

section 1021(a)(3) to cancel any limited tax benefit in

that law that meets the definition in section 1026.

(d) CONGRESSIONAL IDENTIFICATION OF LIMITED TAX BENEFITS.—There shall be no judicial review of the congressional 

identification under subsections (a) and (b) of a limited tax 

benefit in a conference report.
170
171

BALANCED BUDGET AND EMERGENCY

DEFICIT CONTROL ACT OF 1985
172

BALANCED BUDGET AND 

EMERGENCY DEFICIT CONTROL ACT OF 1985

H. J. RES. 372, PUBLIC LAW 99-177

Sponsor: No Sponsor 

August 1, 1985 Introduced in House

August 1, 1985 Passed/agreed to in House.

September 26, 1985 Committee on Finance. Reported to Senate by Senator Packwood without amendment. With written 

report No. 99-144. Additional views filed.

October 10, 1985 Passed Senate with amendments by Yea-Nay Vote. 

51-37. Record Vote No: 222.

October 11, 1985 Resolving differences–House actions: House Disagreed to Senate Amendments by Unanimous Consent.

November 1, 1985 Conference Report 99-351 Filed in House.

November 1, 1985 House Receded and Concurred With an Amendment in Senate Amendments.

November 1, 1985 House Receded and Concurred in Senate Amendment 003.

November 2, 1985 Senate agreed to conference report by Unanimous 

Consent.

November 2, 1985 Senate agreed to the first House amendment to the 

first Senate amendment. By Unanimous Consent.

November 6, 1985 House Disagreed to Senate Amendments to House 

Amendments to Senate Amendments 001, 002 by 

Unanimous Consent.

December 10, 1985 Conference Report 99-433 Filed in House.

December 11, 1985 House Agreed to Conference Report: 271 - 154 

(Record Vote: 454).

December 11, 1985 Senate Agreed to Conference: 61-31 (Record Vote

371).

December 11, 1985 Cleared for White House.

December 11, 1985 Presented to President.

December 12, 1985 Signed by President.

December 12, 1985 Became Public Law 99-177.
173

BALANCED BUDGET AND EMERGENCY DEFICIT

CONTROL ACT OF 1985

Public Law 99-177, December 12, 1985, Title II, December 12, 1985, 99 Stat. 1038

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.

Bipartisan Budget Act of 2013; December 26, 2013; Public Law 113–67; 127 Stat. 1165, 1166, 1167, 1168, 

1174, 1175.

South Utah Valley Electric Conveyance Act; Public Law 

113–82; February 15, 2014; 128 Stat. 1009.

Protecting Access to Medicare Act of 2014; Public Law 

113-93; April 1, 2014; 128 Stat. 1077. 
174

NOTE ON THE CONSTITUTIONALITY OF THE BALANCED BUDGET 

AND EMERGENCY DEFICIT CONTROL ACT OF 1985

As originally enacted, the Balanced Budget and Emergency 

Deficit Control Act of 1985 (BBEDCA) assigned the responsibility of implementing sequestration to the Government Accountability Office (GAO) (then known as the General Accounting 

Office). Representative Michael Lynn Synar (D-OK) brought 

suit against the law over the structure of this arrangement

since GAO is a Congressional support agency. The head of the 

GAO, the Comptroller General, is ultimately answerable to 

Congress, and could be relieved from the position, by unilateral 

action by the Legislative Branch. 

Comptroller General Charles Arthur Bowsher was named 

as the defendant in the case: The Supreme Court found this 

part of BBEDCA to be unconstitutional in the case of Bowsher 

v. Synar. It held, in part: 

“Under the constitutional principle of separation of powers, 

Congress cannot reserve for itself the power of removal of an officer 

charged with the execution of the laws except by impeachment. To 

permit the execution of the laws to be vested in an officer answerable 

only to Congress would, in practical terms, reserve in Congress control of the execution of the laws. The structure of the Constitution 

does not permit Congress to execute the laws; it follows that Congress cannot grant to an officer under its control what it does not 

possess.” Bowsher v. Synar, 478 U. S. 714, 715; see also Bowsher v. 

Synar, 478 U. S. at 721-734 (1986) (explaining rationale behind holding); cf. INS v. Chadha, 462 U.S. 919.

Partially as a reaction to this case, Congress revised the 

law by enacting the Balanced Budget and Emergency Deficit 

Reaffirmation Act of 1987, which delegated the responsibility 

for implementing sequestration to the Office of Management 

and Budget (OMB).

151 This responsibility has stayed with OMB through the 

lapse of the BBEDCA sequestration and its subsequent revision under the Statutory Pay-As-You-Go Act of 2010 and the 

Budget Control Act of 2011. The former law has a method to 

circumvent this ruling by allowing a process by which estimates, prepared by the Congressional Budget Office, of the cost 

of legislation may be incorporated by reference into the calculation of the levels of the S-Paygo Scorecards.152

 151 See the Balanced Budget and Emergency Deficit Reaffirmation Act of 

1987, Pub. L. No. 100-119, 101 Stat. 754. 152 See section 4(b) of the Statutory Pay-As-You-Go Act of 2010, §284, infra. 
175

BALANCED BUDGET AND EMERGENCY 

DEFICIT CONTROL ACT OF 1985

______

[PUBLIC LAW 99-177; 99 STAT. 1037; H.J. Res. 372;153 DECEMBER 12,1985]

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 

“$1,847,800,000,000, or $2,078,700,000,000 on and after October 1,1985,”.154

SEC. 2. MINIMUM CORPORATE TAX BY CORPORATIONS.

(a) Notwithstanding any other provision of this joint resolution, the Senate Committee on Finance is directed to report 

to the Senate by July 1, 1986, legislation providing for payment of an alternative minimum corporate tax by corporations 

on the broadest feasible definition of income to assure that all 

of those with economic income pay their fair share of taxes: 

Provided, That said alternative minimum corporate tax shall 

take effect for corporate tax years commencing on or after October 1,1986. The revenue raised by this tax shall be applied 

to reduce the Federal deficit.

 153 The increase in the debt ceiling was set forth in H.J. Res 372. It was 

passed by the House by operation of the “Gephardt Rule”. This rule of the 

House required the Clerk to prepare a joint resolution and deem it passed by 

the House, engross the measure and send it on to the Senate. The rule provided that the language of this joint resolution was set forth in the Joint 

Explanatory Statement of Managers on a conference report on the concur- rent resolution on the budget for a fiscal year. When the conference report 

on the budget was adopted in the House, an increase in the debt ceiling was 

enrolled by the clerk. This law, BBEDCA, was initially adopted by the 

House in this way and under the terms of the House Rule, known as “the 

Gephardt Rule” (since repealed), and later amended to its final form. Under 

the Gephardt Rule, because the debt increase legislation is a joint resolution 

enrolled automatically upon the adoption of a concurrent resolution on the 

budget setting out its text, it formally has no sponsor. The Balanced Budget 

and Emergency Deficit Control Act of 1985 is one of the few bills enacted 

never formally introduced and has no Member of Congress as its sponsor. 154 From 31 U.S.C. 3101: “Subsec. (b). Pub. L. 99–177 substituted 

‘$1,847,800,000,000, or $2,078,700,000,000 on and after October 1, 1985’ for 

‘$1,575,700,000,000, or $1,823,800,000,000 on and after October 1, 1984’.” 

See infra at §342. 
Sec. 214 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 176

99 STAT. 1037 §200

(b) Notwithstanding any other provision of this joint resolution, the Committee on Ways and Means is directed to report to the House of Representatives legislation providing for 

payment of an alternative minimum corporate tax by corporations based upon the broadest feasible definition of income to 

assure that all of those with economic income pay their fair 

share of taxes: Provided, That, the Committee on Ways and 

Means shall report such legislation prior to October 1,1986.155

SEC. 3. ACHILLE LAURO HIJACKING. 

(a) The Senate finds that—

(1) the four men identified as the hijackers of the 

Achille Lauro were responsible for brutally murdering an 

innocent American citizen, Leon Klinghoffer, and for terrorizing hundreds of innocent crew members and passengers for two days;

(2) the United States urges all countries to aid in the 

swift apprehension, prosecution, and punishment of the 

terrorists; and

(3) the United States should not tolerate any country 

providing safe harbor or safe passage to the terrorists.

(b) It is the sense of the Senate that—

(1) the United States demands that no country provide 

safe harbor or safe passage to these terrorists,

(2) the United States expects full cooperation of all 

countries in the apprehension, prosecution, and punishment of these terrorists,

(3) the United States cannot condone the release of terrorists or the making of concessions to terrorists; and

(4) the United States identify those individuals responsible for the seizure of the Achille Lauro and the coldblooded murder of Leon Klinghoffer, as well as those countries and groups that aid and abet such terrorist activities, 

and take the strongest measures to ensure that those responsible for this brutal act against an American citizen 

are brought to justice.

 155 The Ways and Means Committee did not report legislation pursuant to 

this section on this subject. The issue of the alternative minimum corporate 

tax was included in the Tax Reform Act of 1986 (TRA) (Pub. L. 99–514, 100 Stat. 2085, October 22, 1986).
177 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 200

§200 2 U.S.C. 900 NOTE

TITLE II—DEFICIT REDUCTION 

PROCEDURES

SEC. 200. [2 U.S.C. 900 note] SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE.—This title may be cited as the “Balanced 

Budget and Emergency Deficit Control Act of 1985”.

(b) TABLE OF CONTENTS.—

Sec. 200. Short title and table of contents.

PART A—CONGRESSIONAL BUDGET PROCESS

SUBPART I—CONGRESSIONAL BUDGET

Sec. 201. Congressional budget.

SUBPART II—AMENDMENTS TO TITLE IV OF THE 

CONGRESSIONAL BUDGET ACT OF 1974

Sec. 211. New spending authority.

Sec. 212. Credit authority.

Sec. 213. Description by Congressional Budget Office.

Sec. 214. General Accounting Office study; off-budget agencies; member user 

group.

SUBPART III—ADDITIONAL PROVISIONS TO IMPROVE BUDGET PROCEDURES

Sec. 221. Congressional Budget Office.

Sec. 222. Current services budget for congressional budget purposes.

Sec. 223. Study of off-budget agencies.

Sec. 224. Changes in functional categories.

Sec. 225. Jurisdiction of Committee on Government Operations.

Sec. 226. Continuing study of congressional budget process.

Sec. 227. Early election of committees of the House.

Sec. 228. Rescissions and transfers in appropriation bills.

SUBPART IV—TECHNICAL AND CONFORMING AMENDMENTS

Sec. 231. Table of contents.

Sec. 232. Additional technical and conforming amendments.

PART B—BUDGET SUBMITTED BY THE PRESIDENT

Sec. 241. Submission of President's budget; maximum deficit amount may 

not be exceeded.

Sec. 242. Supplemental budget estimates and changes.

PART C—EMERGENCY POWERS TO ELIMINATE DEFICITS IN 

EXCESS OF MAXIMUM DEFICIT AMOUNT

Sec. 251. Reporting of excess deficits.

Sec. 252. Presidential order.

Sec. 253. Compliance report by Comptroller General.

Sec. 254. Congressional action.

Sec. 255. Exempt programs and activities.

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

Sec. 257. Definitions.
Sec. 214 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 178

99 STAT. 1037 §200

PART D—BUDGETARY TREATMENT OF SOCIAL SECURITY TRUST 

FUNDS

Sec. 261. Treatment of trust funds.

PART E—MISCELLANEOUS AND RELATED PROVISIONS

Sec. 271. Waivers and suspensions; rulemaking powers.

Sec. 272. Restoration of trust fund investments.

Sec. 273. Revenue estimates.

Sec. 274. Judicial review.

Sec. 275. Effective dates.

PART A—CONGRESSIONAL BUDGET PROCESS

SUBPART I—CONGRESSIONAL BUDGET

SEC. 201. CONGRESSIONAL BUDGET.

(1) Section 3 of the Congressional Budget and Impoundment Control Act of 1974 is amended by adding at the end 

thereof the following new paragraphs:156

[...]

SUBPART II—AMENDMENTS TO TITLE IV OF THE 

CONGRESSIONAL BUDGET ACT OF 1974

SEC. 211. NEW SPENDING AUTHORITY.

[See supra at §131 (sec. 401 of the Budget Act on new entitlement authority and contract authority)]

SEC. 212. CREDIT AUTHORITY.

[See supra at §132 (sec. 402 of the Budget Act setting forth 

requirements of estimates by CBO)]

SEC. 213. DESCRIPTION BY CONGRESSIONAL BUDGET OFFICE.

[See supra at §132 (sec. 402 of the Budget Act setting forth 

requirements of estimates by CBO)]

SEC. 214. GENERAL ACCOUNTING OFFICE STUDY; OFF-BUDGET 

AGENCIES; MEMBER USER GROUP.

[See supra at §134 and §135 (secs. 404 and 405 of the 

Budget Act)]

 156 Section 201 amended section 3 of the Congressional Budget Act of 1974 

by setting forth definitions for the terms “deficit”, “maximum deficit 

amount”, “off-budget entity”, “entitlement authority”, and “credit authority”. 

It also amended and revised significantly Title III of that Act, giving it 

largely the structure that it currently has, though it has been significantly 

revised since the enactment of BBEDCA in 1985 by the Balanced Budget 

and Emergency Deficit Control Reaffirmation Act of 1987 (Pub. L. 100–119, 

title I, Sept. 29, 1987, 101 Stat. 754, 2 U.S.C. § 900), the Budget Enforcement Act of 1990, the Budget Enforcement Act of 1997, the Budget Control 

Act of 2011, and the Bipartisan Budget Act of 2013.
179 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 228

§200 99 STAT. 1061

SUBPART III—ADDITIONAL PROVISIONS 

TO IMPROVE BUDGET PROCEDURES

SEC. 221. CONGRESSIONAL BUDGET OFFICE.157

[...]

SEC. 222. CURRENT SERVICES BUDGET FOR CONGRESSIONAL 

BUDGET PURPOSES.

[...]

SEC. 223. STUDY OF OFF-BUDGET AGENCIES.158

[...]

SEC. 224. CHANGES IN FUNCTIONAL CATEGORIES.

[...]

SEC. 225. JURISDICTION OF COMMITTEE ON GOVERNMENT OPERATIONS.159

[...]

SEC. 226. CONTINUING STUDY OF CONGRESSIONAL BUDGET 

PROCESS.160

[...]

SEC. 227. EARLY ELECTION OF COMMITTEES OF THE HOUSE.

[...]

SEC. 228. RESCISSIONS AND TRANSFERS IN APPROPRIATION

BILLS.161

[...]

 157 This section amended title II of the Congressional Budget Act of 1974 

by inserting the requirement that the Congressional Budget Office, before 

January 15 of each year, submit a report listing all the programs and activities funded for a fiscal year but for which an authorization is not in effect. 158 Section 223 repealed a provision in the original Congressional Budget 

Act of 1974 (section 606) that directed the Committees on the Budget to 

“study on a continuing basis those provisions of law which exempt agencies 

of the Federal Government, or any of their activities or outlays, from inclu- sion in the Budget.” 159 Section 225 provided the Committee on Government Operations, in the 

114th Congress the “Committee on Oversight and Government Reform,” with 

the jurisdiction over “measures providing for off-budget treatment of Federal 

agencies or programs.” This jurisdiction has since been shifted to the Com- mittee on the Budget of the House. 160 This section provided the Committee on Rules of the House the jurisdiction and responsibility to review the Congressional budget process and 

“report its findings and recommendations from time to time.” The Committee on the Budget of the House now has jurisdiction over the budget process 

“generally” supplanting this responsibility. 161 This subsection (a) added language to the current clause 2(b) of rule 

XXI of the Rules of the House: “ ... except rescissions of appropriations contained in appropriation Acts”. Subsection (b) added this language to current 

clause 2 of rule XXI: “shall not apply to transfers of unexpended balances 

within the department or agency for which they were originally appropriated, reported by the Committee on Appropriations”. See §361, infra.
Sec. 242 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 180

99 STAT. 1063 §200

SUBPART IV—TECHNICAL AND CONFORMING AMENDMENTS

SEC. 231. TABLE OF CONTENTS.162

[...]

SEC. 232. ADDITIONAL TECHNICAL AND CONFORMING 

AMENDMENTS.163

[...]

PART B — BUDGET SUBMITTED BY THE 

PRESIDENT

SEC. 241. SUBMISSION OF PRESIDENT'S BUDGET; MAXIMUM 

DEFICIT AMOUNT MAY NOT BE EXCEEDED.

(a) SUBMISSION OF PRESIDENT’S BUDGET.—The first sentence of section 1105(a) of title 31, United States Code, is 

amended by striking out “During the first 15 days of each regular session of Congress” and inserting in lieu thereof the following: “On or before the first Monday after January 3 of each 

year (or on or before February 5 in 1986)”.164

(b) MAXIMUM DEFICIT AMOUNT MAY NOT BE 

ED.165—Section 1105 of title 31, United States Code, is amended by adding at the end thereof the following new subsection:

[...]

SEC. 242. SUPPLEMENTAL BUDGET ESTIMATES AND CHANGES.

(a) CHANGE IN DATE OF SUBMISSION.—The first sentence of 

section 1106(b) of title 31, United States Code, is amended by 

striking out “April 11 and”.

(b) REVISIONS AND SUPPLEMENTAL SUMMARIES.— Section 

1106 of title 31 of such Code is further amended by adding at 

the end thereof the following new subsection:

[...]

 162 This section amended the table of contents in section 1(b) of the Con- gressional Budget Act of 1974: “TITLE III—CONGRESSIONAL BUDGET PROCESS”. 163 This section amended the table of contents set forth in section 1(b) of 

the Congressional Budget Act of 1974: “TITLE IV—CONGRESSIONAL BUDGET 

PROCESS”. This section also corrected date changes and typographical errors. 164 This changed the required Presidential submission from “during the 

first 15 days of each regular session of Congress” to “on or before the first 

Monday after January 3 of each year.” The Budget Enforcement Act of 1990 

later amended this to how it reads currently: “On or after the first Monday 

in January but not later than the first Monday in February of each year.” 165 This required budgets transmitted to Congress under 31 U.S.C. 

§1105(a) use the “best estimates then available” of the levels of deficit in 

that budget. It also required those deficits be no higher than the permitted 

Maximum Deficit Amounts provided for in law . At that time paragraph (7) 

of Sec. 3 of the Congressional Budget Act of 1974 set these levels. Maximum 

Deficit Amounts were subsequently transferred to section 253 of BBEDCA. 

See §205, infra.
181 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 250

§201 2 U.S.C. 900

PART C — EMERGENCY POWERS TO

ELIMINATE DEFICITS IN EXCESS OF MAXIMUM

DEFICIT AMOUNT

SEC. 250. [2 U.S.C. 900] TABLE OF CONTENTS; STATEMENT OF

BUDGET ENFORCEMENT THROUGH SEQUESTRATION; DEFINITIONS.166

(a) TABLE OF CONTENTS.— 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

84167 (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 ap-

 166 For purposes of the Statutory Pay-As-You-Go Act of 2010 (title I of 

Public Law 111–139; February 12, 2010; 124 Stat. 8), sections 255, 256, 257, 

and 274 of BBEDCA also apply to the provisions of Title I of that Act. 167 H. Con. Res. 84 was the conference report on the Concurrent Resolution on the Budget for Fiscal Year 1998. It provided for the Bipartisan 

Budget Agreement announced by the Congressional Leadership and President William J. Clinton on May 2, 1997, which was finalized May 15, 1997. 

Through the reconciliation process, this Agreement became the Balanced 

Budget Act of 1997 and the Taxpayer Relief Act of 1997. Though these were 

two separate bills as enacted and filed, they stemmed from the same legisla- tive procedure and only divided into the two laws at the end of the process. 
Sec. 250 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 182

2 U.S.C. 900 §201

propriations) is above that category’s discretionary spending limit for new budget authority or outlays for that

year, as the case may be.

(4)168(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.

(D) The term “revised security category” means discretionary appropriations in budget function 050.

(E) The term “revised nonsecurity category” means discretionary appropriations other than in budget function 

050.

(F) The term “category” means the subsets of discretionary appropriations in section 251(c). Discretionary appropriations in each of the categories shall be those designated in the joint explanatory statement accompanying the 

conference report on the Balanced Budget Act of 1997. 

New accounts or activities shall be categorized only after 

consultation with the Committees on Appropriations and 

the Budget of the House of Representatives and the Senate 

and that consultation shall, to the extent practicable, include written communication to such committees that affords such committees the opportunity to comment before 

official action is taken with respect to new accounts or activities.

(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.

(6) The term “budgetary resources” means new budget

authority, unobligated balances, direct spending authority,

and obligation limitations.

 168 Under current law, the terms “nonsecurity category” in (A), “security 

category” in (B), and “discretionary category” in (C) are no longer in use. 

Originally put in place by the Budget Control Act of 2011, they have been 

eliminated from statute by amendment and the terms of the BCA. The Bipartisan Budget Act of 2013 changed the use of the terms. See §296, infra.
183 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 250

§201 2 U.S.C. 900

(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.169

(13) The term “current year” means, with respect to a 

budget year, the fiscal year that immediately precedes that 

budget year.170

 169 The “budget year” as defined here and the first year of the budget reso- lution are not always the same fiscal year since they are defined differently. The first fiscal year of the period of fiscal years required under section 301(a) 

of the Budget Act covered by the concurrent resolution on the budget is often 

the same as the statutorily defined “budget year”, but not always. A resolu- tion budget year may be in force for a fiscal year when a session of Congress 

first meets which means the “budget year” will be the fiscal year beginning 

October 1 of that session, hence following the budget resolution year. 170 The “current year” does not meaningfully exist between October 1 of a 

calendar year and the beginning date of a session of Congress (session date). This occurs because the fiscal year preceding the “budget year” will end at 

the end of September 30 of each year, but the “budget year” will not begin 

until the following calendar year session date. Between October 1 and the 

session date, the “current year” is a reference to an expired fiscal year. This 
Sec. 250 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 184

2 U.S.C. 900 §201

(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 1997.171

(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.172

(20) The term “emergency”173 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.

 differs from a “resolution budget year” in that the preceding year is the one

before a fiscal year for which a budget resolution has been adopted. 171 Part IV of this Compendium includes a list of these appropriations. 172 See Rule 15 from the Scorekeeping Guidelines, infra in Part IV. 173 The report on H.R. 853, the Comprehensive Budget Process Reform Act 

of 1999 said this definition was “an objective yet broad definition” that drew 

“from a definition developed by [OMB] in 1991.” On May 16, 2000, it failed to 

pass, but includes invaluable information on budget concepts and definitions.
185 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 251

§202 2 U.S.C. 901

SEC. 251. [2 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)174 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 partyear appropriation; and

(B) when a full-year appropriation for that account is enacted, from the amount otherwise provided by the full year 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 catego-

 174 Section 255 of BBEDCA lists the accounts exempted from sequestration procedures, and includes the following: “(f) OPTION EXEMPTION OF MILITARY PERSONNEL”. This subsection includes a requirement that if the President exercises the exemption authority he must notify Congress of the manner by which it is exercised. 
Sec. 251 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 186

2 U.S.C. 901 §202

ry), 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 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
187 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 251

§202 2 U.S.C. 901

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 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
Sec. 251 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 188

2 U.S.C. 901 §202

(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 Act175

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;

(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;176

 175 42 U.S.C. 401 et seq., 1381 et seq. 176 42 U.S.C. 421(i) and 1382c(a)(4)
189 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 251

§202 2 U.S.C. 901

(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
Sec. 251 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 190

2 U.S.C. 901 §202

(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)).177

(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.

 177 This designation for “disaster finding” was added by the Budget Control Act of 2011, as an annual amount capped at the previous ten-year average. It also defined a “disaster” as referred to in clause iii. Section 102(2) of 

the Robert T. Stafford Disaster Relief Act (42 U.S.C. 5122(2)):

“(2) MAJOR 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.”
191 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 251

§202 2 U.S.C. 901

(c) DISCRETIONARY SPENDING LIMIT.—As used in this part,

the term “discretionary spending limit”178 means— (1) for fiscal year 2014— (A) for the revised security category, 

$520,464,000,000 in new budget authority; and

(B) for the revised nonsecurity category, 

$491,773,000,000 in new budget authority;

(2) for fiscal year 2015— (A) for the revised security category, 

$521,272,000,000 in new budget authority; and

(B) for the revised nonsecurity category, 

$492,356,000,000 in new budget authority;

(3) for fiscal year 2016—

(A) for the revised security category, 

$577,000,000,000 in new budget authority; 179and

(B) for the revised nonsecurity category, 

$530,000,000,000 in new budget authority;180

(4) for fiscal year 2017—

(A) for the revised security category, 

$590,000,000,000 in new budget authority; and (B) for the revised nonsecurity category, 

$541,000,000,000 in new budget authority;

(5) for fiscal year 2018— (A) for the revised security category, 

$603,000,000,000 in new budget authority; and

(B) for the revised nonsecurity category, 

$553,000,000,000 in new budget authority;

(6) for fiscal year 2019—

(A) for the revised security category, 

$616,000,000,000 in new budget authority; and

(B) for the revised nonsecurity category, 

$566,000,000,000 in new budget authority;

(7) for fiscal year 2020—

(A) for the revised security category, 

$630,000,000,000 in new budget authority; and (B) for the revised nonsecurity category, 

$578,000,000,000 in new budget authority; and

(8) for fiscal year 2021— (A) for the revised security category, 

$644,000,000,000 in new budget authority; and (B) for the revised nonsecurity category, 

$590,000,000,000 in new budget authority; 

as adjusted in strict conformance with subsection (b).

 178 OMB annually adjusts the limits. The Fiscal Year 2016 limit in the sequestration preview report. Fiscal years 2017-2021 are set in future reports. 179 As adjusted: “(A) for the revised security category, $523,091,000,000 in 

new budget authority;” (Preview Report for Fiscal Year 2016). 180 As adjusted: (B) for the revised nonsecurity category, $493,491,000,000 

in new budget authority.” (Preview Report for Fiscal Year 2016).
Sec. 251A DEFICIT CONTROL ACT OF 1985 (BBEDCA) 192

2 U.S.C. 901a §203

SEC. 251A. [2 U.S.C. 901a] ENFORCEMENT OF BUDGET GOAL.

Discretionary appropriations181 and direct spending accounts shall be reduced in accordance with this section as follows:

(1) 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;182

(C) reducing the difference by 18 percent to account for debt service;183

(D) dividing the result by 9;184 and

(E) for fiscal year 2013, reducing the amount calculated under subparagraphs (A) through (D) by 

$24,000,000,000.185

(2) ALLOCATION TO FUNCTIONS.—On March 1, 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 (1) 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).

(3) 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:

 181 Under section 254 of BBEDCA, a sequestration preview report is required to be submitted each year. In this report, OMB annually adjusts the 

discretionary spending limits. Fiscal years 2017 through 2021 are set in reports for those years when they are submitted. The “OMB Sequestration 

Preview Report to the President and Congress for Fiscal Year 2016”, sets 

fiscal year 2016 limits. These adjustments before subsequent adjustments 

that take place under section 251(b) of BBEDCA. See supra at §202. 182 The Joint Select Committee on Deficit Reduction did not report a bill, 

and hence nothing was enacted: This amount is zero. 183 Because the amount of $1.2 trillion is not reduced under subparagraph 

(B), the 18 percent reduction is applied against the total amount: $216 billion for a net amount of $984 billion over the fiscal year 2013-2021 period. 184 Dividing $984 billion by nine equals $109.3 billion per year. See the 

“OMB Report Pursuant to the Sequestration Transparency Act of 2012 (P. L. 

112–155)”, page 5, Table 1. 185 American Taxpayer Relief Act of 2012 (P.L. 112–240) added subparagraph (E) reducing the FY2013 sequestration by $24 billion to $85 billion.
193 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 251A

§203 2 U.S.C. 901a

(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 (2);

(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 (2) and subtracting the discretionary reduction calculated pursuant to subparagraph

(A).

(4) 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 

(2);

(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 (2) and subtracting the discretionary reduction calculated pursuant to subparagraph 

(A).

(C) Notwithstanding the 2 percent limit specified in 

subparagraph (A) for payments for the Medicare programs specified in section 256(d), the sequestration order of the President under such subparagraph for fiscal 

year 2023 shall be applied to such payments so that—
Sec. 251A DEFICIT CONTROL ACT OF 1985 (BBEDCA) 194

2 U.S.C. 901a §203

(i) with respect to the first 6 months in which 

such order is effective for such fiscal year, the payment reduction shall be 2.90 percent; and

(ii) with respect to the second 6 months in which 

such order is so effective for such fiscal year, the 

payment reduction shall be 1.11 percent.

(5) IMPLEMENTING DISCRETIONARY REDUCTIONS.—

(A) FISCAL YEAR 2013.—On March 1, 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 (3); and

(ii) for the revised nonsecurity category, an 

amount equal to the nondefense function discretionary reduction calculated pursuant to paragraph (4).

(B) FISCAL YEARS 2014-2021.—Except as provided 

by paragraph (10), 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 (3); and

(ii) for the revised nonsecurity category by the 

amount of the nondefense function discretionary reduction calculated pursuant to paragraph (4).

(6) IMPLEMENTING DIRECT SPENDING REDUCTIONS.—(A) 

On the date specified in paragraph (2) 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 (3) and (4). When implementing the sequestration of direct spending pursuant to 

this paragraph, OMB shall follow the procedures specified 

in section 6 of the Statutory Pay-As-You-Go Act of 2010,186

 186 Section 6 of the Statutory Pay-As-You-Go Act of 2010 may be found infra at §258.
195 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 251A

§203 2 U.S.C. 901a

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.187

(B) On the dates OMB issues its sequestration preview 

reports for fiscal year 2022, for fiscal year 2023, and for fiscal year 2024, pursuant to section 254(c), the President 

shall order a sequestration, effective upon issuance such 

that—

(i) the percentage reduction for nonexempt direct 

spending for the defense function is the same percent as 

the percentage reduction for nonexempt direct spending 

for the defense function for fiscal year 2021 calculated 

under paragraph (3)(B); and

(ii) the percentage reduction for nonexempt direct 

spending for nondefense functions is the same percent 

as the percentage reduction for nonexempt direct spending for nondefense functions for fiscal year 2021 calculated under paragraph (4)(B).

(C) Notwithstanding the 2 percent limit specified in 

sub-paragraph (A) for payments for the Medicare programs 

specified in section 256(d), the sequestration order of the 

President under such subparagraph for fiscal year 2023 

shall be applied to such payments so that—

(i) with respect to the first 6 months in which such 

order is effective for such fiscal year, the payment reduction shall be 2.90 percent; and

(ii) with respect to the second 6 months in which 

such order is so effective for such fiscal year, the payment reduction shall be 1.11 percent.

(D) Notwithstanding the 2 percent limit specified in 

subparagraph (A) for payments for the Medicare programs 

 187 Section 256 of the Balanced Budget and Emergency Deficit Control Act 

of 1985 (see infra at §208) specifies that, when implementing a direct spending sequestration pursuant to a Final Sequestration Report order required 

under section 254 of that Act (see infra at §206), there is a 4 percent reduction in the Medicare program. The direct spending sequestration ordered 

pursuant to section 251A as devised by the Budget Control Act of 2011 is 

included in the Sequestration Preview Report of section 254. This is distinct 

from most other sequesters which depend on the “Sequestration Final Report” which is transmitted by the Office of Management and Budget within 

fifteen days after the date of the end of the session of Congress. The direct 

spending sequestration implementation is distinct from the discretionary 

spending sequestration in that the latter occurred through the reduction in 

the spending limits in section 251 while the former occurs on an annual basis and will continue through fiscal year 2024. The last spending limit on 

discretionary spending is set for fiscal year 2021. See supra at §202.
Sec. 251A DEFICIT CONTROL ACT OF 1985 (BBEDCA) 196

2 U.S.C. 901a §203

specified in section 256(d), the sequestration order of the 

President under such subparagraph for fiscal year 2024 

shall be applied to such payments so that—

(i) with respect to the first 6 months in which such 

order is effective for such fiscal year, the payment reduction shall be 4.0 percent; and

(ii) with respect to the second 6 months in which 

such order is so effective for such fiscal year, the payment reduction shall be 0.0 percent.188

(7) ADJUSTMENT FOR MEDICARE.—If the percentage reduction for the Medicare programs would exceed 2 percent 

for a fiscal year in the absence of paragraph (6), OMB shall 

increase the reduction for all other discretionary appropriations and direct spending under paragraph (4) by a uniform 

percentage to a level sufficient to achieve the reduction required by paragraph (4) in the non-defense function.

(8) IMPLEMENTATION OF REDUCTIONS.—Any reductions 

imposed under this section shall be implemented in accordance with section 256(k).

(9) REPORT.—On the dates specified in paragraph (2), 

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 under- standing of this title and actions taken under 

it.

(10) IMPLEMENTING DIRECT SPENDING REDUCTIONS FOR 

FISCAL YEARS 2014 AND 2015.—(A) OMB shall make the 

calculations necessary to implement the direct spending 

reductions calculated pursuant to paragraphs (3) and (4) 

without regard to the amendment made to section 251(c) 

revising the discretionary spending limits for fiscal years 

2014 and 2015 by the Bipartisan Budget Act of 2013.

(B) Paragraph (5)(B) shall not be implemented for fiscal 

years 2014 and 2015.189

 188 The Protecting Access to Medicare Act of 2014 (Pub. L. 113–93) added 

subpar. (D).This amendment changed how the automatic sequestration under this section is applied. In doing so, a greater amount of outlay reduction 

is generated in fiscal year 2024 instead of fiscal year 2025, as would occur 

without this language. This timing shift generated greater savings within 

the applicable budget window causing the appearance of compliance. 189 Fiscal years 2014 and 2015 were exempted from sequestration under 

this paragraph,. Included in the Bipartisan Budget Act of 2013 (P.L. 113-

67), this paragraph preserved the calculation of the direct spending sequestration while providing the exemption for these two fiscal years.
197 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 252

§204 2 U.S.C. 902

SEC. 252. [2 U.S.C. 902] ENFORCING PAY-AS-YOU-GO.

(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

(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) (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 
Sec. 252 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 198

2 U.S.C. 902 §204

and the uniform percentage applicable to all other direct

spending programs under this paragraph shall be 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.—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).
199 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 253

§205 2 U.S.C. 903

(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.

(e) 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

coveragricultural cropdisasterassistance.190

SEC. 253. [2 U.S.C. 903] ENFORCING DEFICIT TARGETS.

(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-yougo), 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

 190 Statutory Pay-As-You-Go Act of 2010 includes a reference to this emergency. If a provision is designated as an emergency, then the effects are not 

reflected on the Statutory Pay-As-You-Go Scorecard. Similarly any provision 

so designated is exempt from the House Cutgo Rule and Senate Paygo Rule. 
Sec. 253 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 200

2 U.S.C. 903 §205

(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.

(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 nonexempt, nondefense account shall be reduced by the uniform percentage necessary to make the reductions in nondefense 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 nondefense 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.
201 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 253

§205 2 U.S.C. 903

(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 nonexempt 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 partyear appropriation; and

(B) when a full-year appropriation for that account

is enacted, from the amount otherwise provided by the

full year appropriation; except that the amount to be

sequestered from that account shall be reduced (but

not below zero) by the savings achieved by that appropriation when the enacted amount is less than the

baseline for that account.

(g) 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 1992, 1993, 1994, and 1995 shall be adjusted to

reflect up-to-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-to-date 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
Sec. 253 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 202

2 U.S.C. 903 §205

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 1974191

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 sequestration of direct spending accounts)

shall be calculated for each fiscal year by adding—

 191 Section 601 of the Congressional Budget Act of 1974 was repealed in 

1997 by the Budget Enforcement Act of 1997. The discretionary spending limits are set forth in section 251(c) of BBEDCA. Before its repeal, section 601 set 

spending limits by reference to section 12(b)(l) of H. Con. Res. 64 (103rd Congress), which set limits through fiscal year 1998. Those limits were set in the 

Omnibus Budget Reconciliation Act of 1993, and the concurrent resolution was 

the budget resolution for fiscal year 1994.
203 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 253

§205 2 U.S.C. 903

(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 601192 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).193

 192 All of Title VI, including section 601, of the Congressional Budget Act 

of 1974 was repealed in 1997 by the BEA of 1997. Maximum deficit amounts 

remain in section 253 of BBEDCA, but though in law, are not enforceable. 

They were not extended by the Omnibus Budget Reconciliation Act of 1993, 

the BEA of 1997, the BCA of 2011, or the BBA of 2013. Though section 253 

is not operable for enforcing maximum deficit targets, it is referred to in 

section 251A of BBEDCA and the enforcement procedures it includes. 193 President George H. W. Bush submitted his fiscal year 1993 budget, as 

required by 31 U.S.C. 1105, on January 29, 1992. See §305, infra. 
Sec. 254 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 204

2 U.S.C. 904 §206

SEC. 254. [2 U.S.C. 904] REPORTS AND ORDERS.

(a) TIMETABLE.—The timetable with respect to this part

for any budget year is as follows:

(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) SEQUESTRATION PREVIEW REPORTS.—

(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.—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.

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 re- port. 

10 days after end of session............. CBO final sequestration report.

15 days after end of session............. OMB final sequestration report; Presidential order.
205 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 254

§206 2 U.S.C. 904

(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).

(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.
Sec. 254 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 206

2 U.S.C. 904 §206

(f) FINAL SEQUESTRATION REPORTS. —

(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 differences in the

amount of sequesterable resources for any budget account to be reduced if such difference is greater than 

$5,000,000.
207 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 254

§206 2 U.S.C. 904

(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.—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
Sec. 255 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 208

2 U.S.C. 905 §207

(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. [2 U.S.C. 905] EXEMPT PROGRAMS AND ACTIVITIES.194

(a) SOCIAL SECURITY BENEFITS AND TIER I RAILROAD RETIREMENT.— 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 sections 3 and 4 of the Railroad Retirement Act 

of 1937 (45 U.S.C. 231 et seq.), 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.

 194 See section 256(d)(7) of BBEDCA for three additional Medicare-related 

programs exempt from sequestration. See also section 6(a)(2) of the Statutory Pay-As-You-Go Act of 2010 that indicates the list of programs exempted 

from sequestration is to be found in section 11 of that law. Section 11 

amended section 255 of BBEDCA and relisted it. The Bipartisan Budget Act 

of 2013 made changes to section 255, primarily technical, so there are small 

difference between the section 11 from the Statutory Pay-As-You-Go Act list 

and this one. 
209 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 255

§207 2 U.S.C. 905

(f) OPTION 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)

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).
Sec. 255 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 210

2 U.S.C. 905 §207

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).195

Federal Housing Finance Agency, Administrative

Expenses (95–5532–0–2–371).

Federal National Mortgage Corporation (Fannie

Mae).196

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.

 195 Freddie Mac is considered to be a non-budgetary entity. Though the 

law does not reflect it in section 255, it does have two account numbers associated with it: identification codes 39–4988–0–4–371 and 39–4989–0–4–371. 196 Fannie Mae is considered to be a non-budgetary entity. Though the law 

does not reflect it in section 255, it does have two account numbers associated with it: identification codes 39–4986–0–4–371 and 39–4987–0–4–371. 
211 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 255

§207 2 U.S.C. 905

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-ofwar 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 MedicareEligible 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).
Sec. 255 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 212

2 U.S.C. 905 §207

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).
213 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 255

§207 2 U.S.C. 905

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).

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).
Sec. 255 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 214

2 U.S.C. 905 §207

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).

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).
215 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 256

§208 2 U.S.C. 906

(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.197

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).

(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 NHTSA198 and National

Driver Register (69–8016–0–7–401).

 197 Though the number itself is not included in this section, the identification code for Pell Grants direct spending component is 91–0200–0–1–502. 198 NHTSA is the “National Highway Traffic Safety Administration”. 
Sec. 255 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 216

2 U.S.C. 905 §207

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).

(k) 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. [2 U.S.C. 906] GENERAL AND SPECIAL SEQUESTRATION 

RULES.

(b)199 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 oneyear 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

 199 Subsections (b) and (d), listed here, appear here as section 256 is established in statute. Section 10 of the Statutory Pay-As-You-Go Act of 2010 (P.L. 

111–139) repealed subsections (a) and (c) without redesignating the remaining 

subsections.
217 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 256

§208 2 U.S.C. 906

(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 under such title XVIII pursuant to a sequestration

order under section 254 shall be at a uniform rate, which

shall not exceed 4 percent,200 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.

 200 A sequestration ordered pursuant to the Statutory Pay-As-You-Go Act of 

2010 limits the amount of reduction in direct spending in the Medicare program to two percent rather than the four percent found here. Similarly, direct 

spending reductions ordered pursuant to the sequestration required under the 

terms of the Budget Control Act of 2011 (which set forth a new calculation of 

sequestration and may be found in section 251A of the Balanced Budget and 

Emergency Deficit Control Act of 1985) limits the Medicare amount to two 

percent of program reimbursements, not the four percent limit set here.
Sec. 256 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 218

2 U.S.C. 906 §208

(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 ASSIGNMENT RELATED CASES.—If a reduction in payment

amounts is made under paragraph (1) for services for

which payment under part B of title XVIII of the Social Security Act is made on the basis of an assignment described

in section 1842(b)(3)(B)(ii), in accordance with section

1842(b)(6)(B), or under the procedure described in section

1870(f)(1), of such Act, the person furnishing the services

shall be considered to have accepted payment of the reasonable charge for the services, less any reduction in 

payment amount made pursuant to a sequestration order,

as payment in full.

(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);201

(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.

 201 Medicare Part C, also known as “Medicare Advantage”, was established 

by the Balanced Budget Act of 1997: These are offered by private companies 

approved by Medicare. Beneficiaries still receive health insurance benefits 

(Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance)) though coverage from comes from the Medicare Advantage Plan and not 

the original Medicare program. 
219 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 256

§208 2 U.S.C. 906

(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 costsharing for certain low-income Medicare beneficiaries

under section 1933 of the Social Security Act.

(e) COMMUNITY AND MIGRANT HEALTH CENTERS, INDIAN 

HEALTH SERVICE 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 amount payable under section 5304
Sec. 256 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 220

2 U.S.C. 906 §208

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
221 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 256

§208 2 U.S.C. 906

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.

(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 

RESPECT 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),202

(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 per-

 202 Section 904(a) of the SSA establishes the ‘Unemployment Trust Fund”.”
Sec. 256 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 222

2 U.S.C. 906 §208

centage 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. Subject 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
223 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 256

§208 2 U.S.C. 906

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:

(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,
Sec. 256 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 224

2 U.S.C. 906 §208

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. [2 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 applicable. OMB, CBO,

and the Budget Committees shall consult on the scoring

of such programs where there are differences 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
225 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 257

§209 2 U.S.C. 907

104–127203 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 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 fullyear 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.

 203 Section 171 of P.L. 104-127, the Federal Agriculture Improvement and 

Reform Act of 1996, temporarily suspended parts of the Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949. These Acts provided

permanent price support of certain agricultural commodities. This section 

temporarily suspended agricultural price supports effective for the 1996 

through 2002 crops of these commodities and from the date of enactment of 

the 1996 farm bill’s Title I through December 31, 2002 for milk.
Sec. 257 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 226

2 U.S.C. 907 §209

(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: the Federal Hospital Insurance Trust 

Medical Insurance Trust Fund, the Unemployment Trust

Fund, and the railroad retirement account.

(4) PAY ANNUALIZATION; OFFSET TO PAY.—Current-year

new budget authority for Federal employees shall be adjusted to reflect the full 12-month costs (without absorption204) 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)205 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.

 204 Rule 10 of the Scorekeeping Guidelines of 1997: “Appropriations bills or 

reports should contain language that clearly specifies the extent to which 

funds for pay raises are either provided or absorbed within the levels appropriated in the bill, or remain to be provided.” 205 The Bureau of Labor Statistics is an agency within the Department of 

Labor. Its “Employment Cost Index” measures the change in the cost of labor, 

without regard to employment shifts among occupations and industries.
227 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 258

§210 2 U.S.C. 907A

(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. [2 U.S.C. 907a] SUSPENSION IN THE EVENT OF WAR OR

LOW GROWTH.

(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 VI206 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 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

 206 The Balanced Budget Act of 1997, sec. 10118(a) 29, Public Law 105-33; 

111 Stat. 695), repealed Title VI of the Congressional Act of 1974.
Sec. 258 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 228

2 U.S.C. 907 §210

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 divided 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,
229 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 258A

§211 2 U.S.C. 907B

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 VI207 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. [2 U.S.C. 907b] MODIFICATION OF PRESIDENTIAL ORDER.

(a) INTRODUCTION OF JOINT RESOLUTION208.—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

 207 The Balanced Budget Act of 1997, sec. 10118(a) 29 (H.R. 2015 (105th 

Cong.), Publ. L. 105—33), repealed title VI of the Congressional Act of 1974. 208 The procedure set forth in this section has never been used and a joint 

resolution has never been introduced pursuant to its terms. This does not apply to sequestration stemming from the Budget Control Act of 2011 since it is

ordered under section 251A of BBEDCA.
Sec. 258A DEFICIT CONTROL ACT OF 1985 (BBEDCA) 230

2 U.S.C. 907b §211

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.—

(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.
231 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 258A

§211 2 U.S.C. 907b

(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 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—
Sec. 258B DEFICIT CONTROL ACT OF 1985 (BBEDCA) 232

2 U.S.C. 907c §212

(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 THE 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.

SEC. 258B. [2 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.
233 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 258B

§212 2 U.S.C. 907c

(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 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 
Sec. 258B DEFICIT CONTROL ACT OF 1985 (BBEDCA) 234

2 U.S.C. 907c §212

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 
235 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 258B

§212 2 U.S.C. 907c

resolution or any amendment thereto unless the figures then 

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
Sec. 258C DEFICIT CONTROL ACT OF 1985 (BBEDCA) 236

2 U.S.C. 907d §213

(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.

(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. [2 U.S.C. 907d] SPECIAL RECONCILIATION PROCESS.

(a) REPORTING OF RESOLUTIONS AND RECONCILIATION 

BILLS, IN THE SENATE209.—

(1) COMMITTEE ALTERNATIVES TO PRESIDENTIAL ORDER.— After the submission of an OMB sequestration

update report under section 254210 that envisions a sequestration under section 252 or 253,211 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

 209 Congress has used reconciliation procedure under section 310 of the Congressional Budget Act of 1974, this reconciliation process has not been used. 210 Sequestration are ordered under section 251A of BBEDCA, as amended 

by the Budget Control Act of 2011, but are unrelated to sections 252 and 253. 211 While Sequestration Update Reports are submitted under section 254 of 

the Balanced Budget and Emergency Deficit Control Act of 1985, such reports 

do not envision a sequestration under the terms of section 252 (Enforcing PayAs-You-Go) or 253 (Enforcing Deficit Amounts) of that Act since the terms of 

those sections no longer require automatic reductions in spending.
237 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 258C

§213 2 U.S.C. 907d

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 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
Sec. 258C DEFICIT CONTROL ACT OF 1985 (BBEDCA) 238

2 U.S.C. 907d §213

(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) LIMITS 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 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.

(5) DEFINITION.—For purposes of this subsection, the

term “resolution” means a simple, joint, or concurrent resolution.212

 212 “Simple resolutions” apply in one House of Congress. “Concurrent resolutions” apply to both Houses. “Joint resolutions” are enacted into law. 
239 DEFICIT ACT OF 1985 (BBEDCA) Sec. 261

§214 99 Stat. 1093

PART D—BUDGETARY TREATMENT OF 

SOCIAL SECURITY

SEC 261. TREATMENT OF TRUST FUNDS. 213

(a) FISCAL YEARS 1986 THROUGH 1992.—

(1) IN GENERAL.—Section 710 of the Social Security Act 

(as added by paragraph (1) of subsection (a) of section 346 of 

the Social Security Amendments of 1983) is amended—

(A) by striking out all beginning with “the” the first 

place it appears down through “Disability Insurance 

Trust Fund, the” and inserting in lieu thereof “the”; 

(B) by striking out the comma after “Hospital Insurance Trust Fund”; 

(C) by striking out “sections 1401, 3101, and 3111” 

and inserting in lieu thereof “sections 1401(b), 3101(b), 

and 3111(b)”:

(D) by redesignating all after the section designation 

as subsection (b);

(E) by inserting immediately after the section designation the following:

“(a) The receipts and disbursements of the Federal Old-Age 

and Survivors Insurance Trust Fund and the Federal Disability 

Insurance Trust Fund, and the taxes imposed under sections 

1401(a), 3101(a), and 3111(a) of the Internal Revenue Code of 

1954, shall not be included in the totals of the budget of the 

United States Government as submitted by the President or of 

the congressional budget and shall be exempt from any general 

budget limitation imposed by statute on expenditures and net 

lending (budget outlays) of the United States Government.”; and

(F) by adding at the end thereof the following new subsection:

“(c) No provision of law enacted after the date of the enactment of the Balanced Budget and Emergency Deficit Control 

Act of 1985 (other than a provision of an appropriation Act that 

appropriates funds authorized under the Social Security Act as 

in effect on the date of the enactment of the Balanced Budget 

and Emergency Deficit Control Act of 1985) may provide for 

 213 The Budget Enforcement Act of 1997 amended this section, its current 

form. Under this section, receipts and disbursements of Federal Old-Age and 

Survivors Insurance Trust Fund, Federal Disability Insurance Trust Fund, 

and Federal Hospital Insurance Trust Fund and taxes imposed under sections 

1401, 3101, and 3111 of title 26 were not to be included in budget totals, that 

no law enacted after Dec. 12, 1985, except certain appropriations Act provisions, could provide for payments to or from the general fund to or from any 

such Trust Fund, and that disbursements of Federal Supplementary Medical 

Insurance Trust Fund were to be a separate functional budget category.
Sec. 261 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 240

99 Stat. 1093 §214

payments from the general fund of the Treasury to the Federal 

Old-Age and Survivors Insurance Trust Fund or the Federal 

Disability Insurance Trust Fund, or for payments from either 

such Trust Fund to the general fund of the Treasury.”.

(2) The amendments made by paragraph (1) shall apply 

with respect to fiscal years beginning after September 30, 

1985, and ending before October 1,1992.

(b) FISCAL YEAR 1993 AND THEREAFTER. 214—Section 710(a) 

of the Social Security Act (42 U.S.C. 911 note), as amended by 

section 346(b) of the Social Security Amendments of 1983 (to be 

effective with respect to fiscal years beginning after September 

30, 1992) is amended—

(1) by inserting “(1)” after the subsection designation; 

and

(2) by adding at the end thereof the following new paragraph:

“(2) No provision of law enacted after the date of the enactment of the Balanced Budget and Emergency Deficit Control Act of 1985 (other than a provision of an appropriation 

Act that appropriates funds authorized under the Social Security Act as in effect on the date of the enactment of the 

Balanced Budget and Emergency Deficit Control Act of 

1985) may provide for payments from the general fund of the 

Treasury to any Trust Fund specified in paragraph (1) or for 

payments from any such Trust Fund to the general fund of 

the Treasury.”.

 214 Section 261 revised Section 710 of the Social Security Act. It was further 

amended by the Budget Enforcement Act of 1997. This section excludes spending and receipts of the Social Security program from budget totals, specifically 

the President’s annual budget submission. See section 13301 for an additional 

example of excluding Social Security from Federal budgeting such as from the 

President’s budget and the Congressional Budget Act of 1974. 

It is codified in the U.S. Code at 42 US Code 911 and currently reads: 

“§911. BUDGETARY TREATMENT OF TRUST FUND OPERATIONS.

“(a) The receipts and disbursements of the Federal Old-Age and Survivors 

Insurance Trust Fund and the Federal Disability Insurance Trust Fund and 

the taxes imposed under sections 1401 and 3101 of the Internal Revenue Code 

of 1986 shall not be included in the totals of the budget of the United States 

Government as submitted by the President or of the congressional budget and 

shall be exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government.

“(b) No provision of law enacted after December 12, 1985 (other than a provision of an appropriation Act that appropriated funds authorized under this 

chapter as in effect on December 12, 1985) may provide for payments from the 

general fund of the Treasury to any Trust Fund specified in subsection (a) of 

this section or for payments from any such Trust Fund to the general fund of 

the Treasury.” 
241 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 271

§215 99 Stat. 1096

PART E—MISCELLANEOUS AND RELATED

PROVISIONS

SEC. 271. WAIVERS AND SUSPENSIONS; RULEMAKING POWERS.

(a) BUDGET ACT WAIVER IN THE SENATE.—Section 904 of the 

Congressional Budget Act of 1974 is amended by redesignating 

subsection (c) as subsection (d), and by inserting after subsection (b) the following new subsection:

“(c) Sections 305(b)(2) and 306 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.”.

(b) OTHER WAIVERS AND SUSPENSIONS IN THE SENATE.—

Sections 301(i), 302(f), 304(b), 310(d), 310(g), and 311(a) of the 

Congressional Budget Act of 1974 may be waived or suspended 

in the Senate only by the affirmative vote of three-fifths of the 

Members, duly chosen and sworn. This subsection shall not apply to any joint resolution reported or discharged pursuant to 

section 254(a) of this joint resolution.

(c) RULEMAKING POWERS.—The provisions of this title, other 

than those relating to the activities of the executive and judicial 

branches of the Government, 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.

SEC. 272. RESTORATION OF TRUST FUND INVESTMENTS.

(a) RESTORATION OF SOCIAL SECURITY TRUST FUNDS AND 

CERTAIN OTHER FUNDS.—

(1) REISSUANCE OF OBLIGATIONS.—The Secretary of the 

Treasury shall immediately reissue to each fund listed in 

paragraph (3) obligations under chapter 31 of title 31, United States Code, which are identical, with respect to interest 

rate and maturity, to public debt obligations held by such 

fund which—

(A) were redeemed during the period beginning with 

September 1, 1985, and ending with September 29, 1985, 

and

(B) as determined by such Secretary on the basis of 

standard investment procedures for such fund in effect 

on September 1, 1985, would not have been redeemed if 
Sec. 272 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 242

99 Stat. 1094 §216

H.J. Res. 372 (99th Congress, 1st Session), as deemed 

passed by the House of Representatives on August 1, 

1985, had been enacted into law on August 1,1985. 

Such obligations shall be substituted for obligations which 

are held by such fund on the date of the enactment of this 

joint resolution in a manner which will ensure that, after 

such substitution, the holdings of such fund will replicate to 

the maximum extent practicable the holdings which would 

have been held by such fund on such date if H.J. Res. 372 

(99th Congress, 1st Session), as deemed passed by the House 

of Representatives on August 1, 1985, had been enacted into 

law on August 1,1985.

(2) APPROPRIATION TO FUNDS OF INTEREST LOST ON OR 

AFTER SEPTEMBER 1, 1985.—The Secretary of the Treasury 

shall pay on the normal interest payment date to each fund 

listed in paragraph (3), from amounts in the general fund of 

the Treasury not otherwise appropriated, an amount determined by such Secretary to be equal to the excess of—

(A) the net amount of interest which would have been 

earned by such fund, during the period beginning with 

September 1, 1985, and ending with the date of the enactment of this joint resolution, if all noninvestments, 

redemptions, and disinvestments with respect to such 

fund which—

(i) occurred during such period, and

(ii) would not have occurred if H.J. Res. 372 (99th

Congress, 1st Session), as deemed passed by the 

House of Representatives on August 1,1985, had been 

enacted into law on August 1,1985, 

had not occurred, over

(B) the net amount of interest actually earned by 

such fund during such period.

(3) FUNDS AFFECTED.—The funds referred to in paragraphs (1) and (2) are the following:

(A) the Federal Old-Age and Survivors Insurance 

Trust Fund,

(B) the Federal Disability Insurance Trust Fund,

(C) the Federal Hospital Insurance Trust Fund,

(D) the Federal Supplementary Medical Insurance 

Trust Fund,

(E) the Railroad Retirement Account,

(F) the Civil Service Retirement and Disability Fund, 

and

(G) all other funds (other than the funds referred to 

in subsection (b) or (c)) listed in Table III of the Monthly 

Statement of the Public Debt issued by the Department 

of the Treasury for November 30,1985.
243 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 272

§216 99 Stat. 1097

(b) RESTORATION OF DEPARTMENT OF DEFENSE MILITARY 

RETIREMENT FUND.—

(1) ISSUANCE OF OBLIGATIONS.—The Secretary of the 

Treasury shall immediately issue to the Department of Defense Military Retirement Fund obligations under chapter 

31 of title 31, United States Code, which such Secretary, in 

consultation with the Secretary of Defense, determines 

would have been issued to such fund on October 1,1985, if 

H.J. Res. 372 (99th Congress, 1st Session), as deemed passed 

by the House of Representatives on August 1, 1985, had 

been enacted into law on August 1, 1985. 

Such obligations shall be market-based special obligations 

issued at prices, including accrued interest, prevailing for 

such obligations on October 1, 1985. Such obligations shall 

be substituted for all obligations which were purchased by 

such fund during the period beginning with October 1, 1985, 

and ending with November 14, 1985, with amounts which 

were transferred to such fund on October 1,1985.

(2) APPROPRIATION TO FUND OF INTEREST LOST ON OR 

AFTER OCTOBER 1, 1985.—

(A) IN GENERAL.—The Secretary of the Treasury shall 

immediately pay to the Department of Defense Military 

Retirement Fund, from amounts in the general fund of 

the Treasury not otherwise appropriated, an amount determined by such Secretary, in consultation with the 

Secretary of Defense, to be equal to the excess of—

(i) the interest which would have been earned by 

such fund during the period beginning with October 

1, 1985, and ending with November 14,1985, if the 

obligations issued pursuant to paragraph (1) had 

been issued on October 1,1985, over

(ii) the amount of interest actually collected by 

such fund during such period on obligations purchased by such fund with amounts which were transferred to such fund on October 1,1985.

(B) INVESTMENT OF INTEREST RECEIPTS.—The Secretary of the Treasury shall immediately invest the 

amount paid to the Department of Defense Military Retirement Fund pursuant to subparagraph (A) in obligations designated by the Secretary of Defense. Such obligations shall be market based special obligations issued 

with an issue date of November 15, 1985, and at prices, 

including accrued interest, prevailing for such obligations on November 15, 1985.
Sec. 272 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 244

99 Stat. 1097 §216

(c) APPROPRIATION TO CERTAIN FUNDS WITH RESPECT TO 

UNINVESTED BALANCES AFTER DECEMBER 6, 1985.—

(1) IN GENERAL.—The Secretary of the Treasury shall 

immediately pay, from amounts in the general fund not otherwise appropriated, to each fund which is listed in Table III 

of the Monthly Statement of the Public Debt issued by the 

Department of the Treasury for November 30, 1985, and 

which invests in market-based special obligations under 

chapter 31 of title 31, United States Code, an amount equal 

to the interest which et seq. would have been earned by such 

fund during the period beginning with December 7, 1985, 

and ending with the date of the enactment of this joint resolution, if the daily balance in such fund which the Secretary 

of the Treasury was requested to invest during such period 

but was unable to invest, because of the expiration of the 

temporary debt limit, had been invested each day during 

such period, overnight, in obligations under such chapter 31 

earning interest at a rate determined by the Secretary of the 

Treasury in accordance with the standard practice of the 

Department of the Treasury.

(2) EXPIRATION OF TEMPORARY DEBT LIMIT DEFINED.—For 

purposes of paragraph (1), the term “expiration of the temporary debt limit” means the expiration of the period described in section 1 of the Act entitled “An Act to temporarily 

increase the limit on the public debt and to restore the investments of the Social Security Trust Funds and other trust 

funds”, approved November 14,1985 (Public Law 99-155). 

(d) ADDITIONAL APPROPRIATION TO OASDI TRUST FUNDS OF 

INTEREST LOST FROM ACTIONS TAKEN IN SEPTEMBER AND OCTOBER 1984.—

(1) IN GENERAL.—On December 31, 1985, the Secretary 

of the Treasury shall pay to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, from amounts in the general fund of 

the Treasury not otherwise appropriated, amounts determined under this subsection. 

(2) AMOUNT PAID TO EACH TRUST FUND.—The amount 

paid to each such Trust Fund pursuant to paragraph (1) 

shall be an amount determined jointly by the Secretary of 

the Treasury and the Secretary of Health and Human Services to be sufficient to fully compensate such Trust Fund for 

interest losses arising from the premature redemption, during the period beginning with September 1, 1984, and ending with October 31, 1984, of securities maturing during the 

period beginning with calendar year 1987 and ending with 

calendar year 1991.
245 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 273

§217 99 Stat. 1098

(3) LIMITATION.—The total amount paid from the general 

fund of the Treasury pursuant to paragraph (1) shall not exceed $550,000,000.

(4) ADJUSTMENTS.—

(A) DETERMINATION OF SHORTFALLS AND EXCESS 

PAYMENTS TO TRUST FUNDS.—As soon as practicable after 

May 31,1986, the Secretary of the Treasury and the Secretary of Health and Human Services shall jointly determine any shortfall or excess in the amount paid to 

each Trust Fund pursuant to paragraph (1) caused by—

(i) the difference between actual interest rates 

and interest rates assumed for purposes of paragraph 

(1), and

(ii) the difference between the actual amount of 

securities redeemed in January 1986 for purposes of 

compliance with section 201(l)(3)(B) of the Social Security Act and the amount of securities assumed for 

purposes of paragraph (1) to be redeemed in such 

month for purposes of compliance with such section.

(B) PAYMENT OF SHORTFALLS AND EXCESSES.—On 

June 30, 1986, the Secretary of the Treasury shall—

(i) in the case of a shortfall in the amount paid to 

either Trust Fund determined pursuant to subparagraph (A), pay to such Trust Fund, from amounts in 

the general fund of the Treasury not otherwise appropriated, the amount of such shortfall, or

(ii) in the case of an excess in the amount paid to 

either Trust Fund determined pursuant to subparagraph (A), pay to the general fund of the Treasury, 

from such Trust Fund, the amount of such excess (but 

not to exceed the amount paid to such Trust Fund 

pursuant to paragraph (1)). 

SEC. 273. REVENUE ESTIMATES.215 [Transferred]

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 

 215 Section 13202(b) of the Budget Enforcement Act of 1990 transferred this 

section which relates to the Congressional Budget Office to section 201(f) of 

the Congressional Budget Act of 1974. The text here reflects section 273 of the 

Balanced Budget and Emergency Deficit Control Act of 1985 as enacted. The 

language in the Congressional Budget Act of 1974 is similar, but not verbatim.
Sec. 274 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 246

2 U.S.C. 922 §218

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 title and the Congressional 

Budget and Impoundment Control Act of 1974.

SEC. 274. [2 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.

(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
247 DEFICIT CONTROL ACT OF 1985 (BBEDCA) Sec. 274

§218 2 U.S.C. 922

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 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.
Sec. 275 DEFICIT CONTROL ACT OF 1985 (BBEDCA) 248

2 U.S.C. 900 note §219

(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. [2 U.S.C. 900 note] EFFECTIVE DATES.216

[Repealed]

 216 Section 104(a) of the Budget Control Act of 2011 (Public Law 112–25) 

repealed Section 275 of this Act . That section included the sunset date, and 

so in repealing it, the Budget Control Act of 2011 had the effect of making all 

provisions the Balanced Budget and Emergency Deficit Control Act of 1985 

permanent. See §295, infra. 

Even though the entire Act is now permanent, certain provisions, such as 

section 252, “Enforcing Pay-As-You-Go”, by the terms of their application, no 

longer have effect. That section, for example, only applies in its enforcement 

mechanism to bills or joint resolutions enacted during fiscal year 2002 or before. See §204, supra.
249

PROVISIONS RELATED TO THE 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
250
§220 39 U.S.C. 2009a

POSTAL SERVICE

OMNIBUS BUDGET

RECONCILIATION ACT OF 1989 ______

[Public Law 101–239; §4001(A)(1); 103 STAT. 2133; December 19, 1989]

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.”.
Sec. 4001 OMNIBUS BUDGET RECONCILATION ACT (1989) 252

39 U.S.C. 2009a §220

(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.
§220 39 U.S.C. 2011(f)

POSTAL SERVICE

POSTAL ACCOUNTABILITY

AND ENHANCEMENT ACT

______

[PUBLIC LAW 109–435; SEC. 401(a)(1); 120 STAT. 3221; DECEMBER 20, 2006]

TITLE IV—PROVISIONS RELATING TO FAIR COMPETITION

SEC. 401. POSTAL SERVICE COMPETITIVE FUND. (a) PROVISIONS RELATING TO THE 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 THE COMPETITIVE 

PRODUCTS.

* * * * * * *

“(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.”
254

††
255

BUDGET ENFORCEMENT ACT OF 1990
256

OMNIBUS BUDGET RECONCILIATION ACT OF 1990217

H.R.5835, PUBLIC LAW 101-508, 104 STAT. 1388

Sponsor: Rep. Leon Panetta [D-CA] 

October 15, 1990 Introduced in House.

October 16, 1990 The House Committee on The Budget reported 

an original measure, H. Rept. 101-881, by Mr. 

Panetta.

October 16, 1990 Passed in House: 227 - 203 (Roll no. 475).

October 19, 1990 Passed in Senate: 54-46. Record Vote 292.

October 27, 1990 Conference report H. Rept. 101-964 filed.

October 27, 1990 Conference report agreed to in House: 228 - 200 

(Roll no. 528).

October 27, 1990 Cleared for White House.

October 27, 1990 Conference report agreed to in Senate: 54-45

(Record Vote: 326).

October 31, 1990 Presented to President.

November 5, 1990 Signed by President.

November 5, 1990 Became Public Law 101-508.

 217 Title XIII of the Omnibus Budget Reconciliation Act of 1990 has 

the short title of the “Budget Enforcement Act of 1990” and is commonly referred to as such (or the BEA of 1990). 
§221 104 STAT. 1388-573

BUDGET ENFORCEMENT ACT

OF 1990

______

[PUBLIC LAW 101–508; 104 STAT. 1388-573; H.R.5835, November 5, 1990218]

OMNIBUS BUDGET RECONCILIATION ACT OF 1990

TITLE XIII—BUDGET 

ENFORCEMENT

SEC. 13001. SHORT TITLE; TABLE OF CONTENTS

(a) SHORT TITLE.—This title may be cited as the “Budget Enforcement Act of 1990”.

(b) TABLE OF CONTENTS.—

TITLE XIII—BUDGET ENFORCEMENT

SUBTITLE A—AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT 

CONTROL ACT OF 1985 AND RELATED AMENDMENTS

Sec. 13001. Short title; table of contents.

Part I—Amendments to the Balanced Budget and 

Emergency Deficit Control Act of 1985

Sec. 13101. Sequestration.

Part II—Related Amendments

Sec. 13111. Temporary amendments to the Congressional Budget Act of 1974.

Sec. 13112. Conforming amendments

 218 The Omnibus Budget Reconciliation Act of 1990 (OBRA 1990), P.L. 101-

508.) was enacted on November 5, 1990. The short title of Title XIII is the 

Budget Enforcement Act of 1990. Titles I through XII of OBRA 1990 are omitted here.
Sec. 13001 BUDGET ENFORCEMENT ACT OF 1990 258

104 STAT. 1388-574 §221

SUBTITLE B—PERMANENT AMENDMENTS TO THE CONGRESSIONAL 

BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974

Sec. 13201. Credit accounting.

Sec. 13202. Codification of provision regarding revenue estimates.

Sec. 13203. Debt increase as measure of deficit; display of Federal Retirement 

Trust Fund balances.

Sec. 13204. Pay-as-you-go procedures.

Sec. 13205. Amendments to section 303.

Sec. 13206. Amendments to section 308.

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

Sec. 13208. Standardization of additional deficit control provisions.

Sec. 13209. Codification of precedent with regard to conference reports and 

amendments between Houses.

Sec. 13210. Superseded deadlines and conforming changes.

Sec. 13211. Definitions.

Sec. 13212. Savings transfers between fiscal years.

Sec. 13213. Conforming change to title 31.

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

SUBTITLE C—SOCIAL SECURITY

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

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

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

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

trust funds regarding the actuarial balance of the trust funds.

Sec. 13305. Exercise of rulemaking power.

Sec. 13306. Effective date.

SUBTITLE D—TREATMENT OF FISCAL YEAR 1991 SEQUESTRATION

Sec. 13401. Restoration of funds sequestered.

SUBTITLE E—GOVERNMENT-SPONSORED ENTERPRISES

Sec. 13501. Financial safety and soundness of Government-sponsored enterprises.
259 BUDGET ENFORCEMENT ACT OF 1990 Sec. 13101

§223 104 STAT. 1388-602

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.

(a) SECTIONS 250 THROUGH 254.—Sections 251 (except for subsection (a)(6)(I)) through 254 of part C of the Balanced 

Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901 

et seq.) are amended to read as follows:219

“SEC. 250. TABLE OF CONTENTS; STATEMENT OF BUDGET ENFORCEMENT 2 USC 900. THROUGH SEQUESTRATION; DEFINITIONS.

“(a) TABLE OF CONTENTS.— “Sec. 250. Table of contents; budget enforcement statement; definitions.

“Sec. 251. Enforcing discretionary spending limits.

“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. Special 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.”

* * * * * * *

PART II—RELATED AMENDMENTS

SEC. 13111. TEMPORARY AMENDMENTS TO THE CONGRESSIONAL 

BUDGET ACT OF 1974.

[...]

SEC. 13112. CONFORMING AMENDMENTS.

[...]220

 219 This section amended the Balanced Budget and Emergency Deficit Control Act of 1985 by replacing sections 250 through 254 with revised and additional sections 250 through 258C. The Budget Enforcement Act of 1990 revised 

the BBEDCA procedures and supplemented them with additional statutory 

controls. The BEA 1990 limited new legislation increasing the deficit. Maximum deficit amounts were replaced by controls on increases in the deficit in a 

fiscal year and also put in place discretionary spending limits. 220 Sections 13111 and 13112 revised Title VI of the Budget Act, which was 

then repealed by the Budget Enforcement Act of 1997. The BEA of 1997 was 

title X of the Balanced Budget Act of 1997. Section 10118 of the BBA of 1997 
Sec. 13203 BUDGET ENFORCEMENT ACT OF 1990 260

104 STAT. 1388-609 §227

Subtitle B—Permanent Amendments

to the Congressional Budget and

Impoundment Control Act of 1974

SEC. 13201. CREDIT ACCOUNTING.

(a) CREDIT ACCOUNTING.—Title V of the Congressional 

Budget Act of 1974 is amended to read as follows:221

[...] 

SEC. 13202. CODIFICATION OF PROVISION REGARDING REVENUE

ESTIMATES.

(a) REDESIGNATION.—Section 201 of the Congressional 

Budget Act of 1974 is amended by redesignating subsection (f) 

as subsection (g). 

(b) TRANSFER.—The text of section 276 of the Balanced 

Budget and Emergency Deficit Control Act of 1985 is transferred to section 201 of the Congressional Budget Act of 1974 as 

subsection (g).

(c) CONFORMING CHANGES.—Section 201(g) of the Congressional Budget Act of 1974 (as redesignated by subsection (b)) is 

amended by –

(1) striking “this title and the Congressional Budget and 

Impoundment Control Act of 1974” and inserting “this Act”; 

and 

(2) inserting “Revenue Estimates.—” before the first sentence.

SEC. 13203. DEBT INCREASE AS MEASURE OF DEFICIT; DISPLAY

OF FEDERAL RETIRMENT TRUST FUND BALANCE.

Section 301(b) of the Congressional Budget Act of 1974 is 

amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting a semicolon, and by adding at the end the following new paragraphs:

 repealed Title VI in its entirety. The Joint Statement of Managers on the BEA

of 1997 stated: 

“The [conference report] repeals title VI, which provided 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.

“... the [conference report] repeals an unused provision in section 604 of the 

Budget Act, which provided the House Budget Committee with the authority 

to report a reconciliation directive providing for tax increases to offset legislation cutting taxes.” 221 Section 13201 added the Federal Credit Reform Act of 1990 as title V of 

the Congressional Budget Act of 1974. FCRA may be found as sections 500 

through 507 of the Budget Act. See supra at §§150-157. 
261 BUDGET ENFORCEMENT ACT OF 1990 Sec. 13210

§234 104 STAT. 1388-620

“(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; and

“(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.”.

SEC. 13204. PAY-AS-YOU-GO PROCEDURES.222

[...] 

SEC. 13205. AMENDMENTS TO SECTION 303.223

[...] 

SEC. 13206. AMENDMENTS TO SECTION 308.224

[...] 

SEC. 13207. STANDARIZATION OF LANGUAGE REGARDING

POINTS OF ORDER.

[...] 

SEC. 13208. STANDARIZATION ADDITIONAL DEFICIT CONTROL

PROVISIONS.

[...] 

SEC. 13209. CODIFICATION OF PRECEDENT WITH REGARD TO

CONFERENCE REPORTS AND AMENDMENTS BETWEEN THE HOUSES.

Section 305(c) of the (Congressional Budget Act 1974 is 

amended—

(1) in paragraph (1)—

(A) by striking the first sentence; and

(B) by inserting after “consideration of the conference 

report" the following: “on any concurrent resolution on 

the budget (or a reconciliation bill or resolution)”; and

(2) in paragraph (2), by inserting “(or a message between 

Houses)” after “conference report” each place it appears.

SEC. 13210. SUPERSEDED DEADLINES AND CONFORMING

CHANGES.

[...]

 222 See §111, supra. This added the following to section 301 of the Budget 

Act: Paragraph (7) set Senate pay-as-you-go procedures (which are different 

from the Senate Pay-As-You-Go Rule found in S. Con. Res. 21 (108th Congress); and paragraph (8) allowed House pay-as-you-go procedures to be set in 

a budget resolution. Though this last is distinct from the “pay-as-you-go” provision in section 302(g) of the Act, the two sections may work in concert. 223 See §113, supra. 224 See §118, supra..
Sec. 13214 BUDGET ENFORCEMENT ACT OF 1990 262

104 STAT. 1388-621 §238

SEC. 13211. DEFINITIONS.225

[...] 

SEC. 13212. SAVINGS TRANSFERS BETWEEN FISCAL YEARS.

Section 202 of Public Law 100-119 is repealed.226

SEC. 13213. CONFORMING CHANGE TO TITLE 31.227

(a) LIMITATIONS ON EXPENDING AND OBLIGATING.—Section 

1341(a)(1) of title 31, United States Code, is amended—

(1) in subparagraph (A), by striking the final word “or”;

(2) in subparagraph (B), by striking the final period and 

inserting a semicolon; and

(3) by adding at the end the following new subparagraphs:

“(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.”.

(b) LIMITATION ON VOLUNTARY SERVICES.—Section 1342 of 

title 31, United States Code, is amended by inserting at the end 

the following:

“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.”.228

SEC. 13214. THE BYRD RULE ON EXTRANEOUS MATTER IN RECONCILIATION.229

* * * * * * *

 225 Section 13211 revised “budget authority” and “new budget authority” for

the Hospital Insurance Trust Fund, Supplementary Medical Insurance Trust 

Fund, Unemployment Trust Fund, and railroad retirement account. 226 This section repealed 2 USC §909 (Pub. L. 100–119) which prohibited 

counting as savings transfer of Government actions from one year to another. 227 This section made conforming amendments to the Antideficiency Act. 228 Section 13213 added at the end of section 1342 of Title 31, United States 

Code: “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.” 229 Section 13214 redesignated section 20001 of the Consolidated Omnibus 

Budget Reconciliation Act of 1985 (Public Law 99–272), adding it and the 

point of order in S. Res. 286, 99th Congress, Dec. 19, 1985 (as amended prior to codification), as section 313 of the Congressional Budget Act of 1974. Known as the “Byrd Rule” it prohibits “extraneous” matter from “Reconciliation Acts 

or Resolutions” under section 310. It is named for Sen. Robert C. Byrd (WV).
263 BUDGET ENFORCEMENT ACT OF 1990 Sec. 13302

§240 104 STAT. 1388-624

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 ACT.—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.”.

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 
Sec. 13302 BUDGET ENFORCEMENT ACT OF 1990 264

104 STAT. 1388-624 §240

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

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.
265 BUDGET ENFORCEMENT ACT OF 1990 Sec. 13303

§241 104 STAT. 1388-625

(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.

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.

(a) CONCURRENT RESOLUTION ON THE BUDGET.—Section 

301(a) of the Congressional Budget Act of 1974 is amended by 

striking “and” at the end of paragraph (4), by striking the period 

at the end of paragraph (5) and inserting a semicolon; and by 

adding after paragraph (5) the following new paragraphs:230

* * * * * * *

 230 Paragraphs (6) and (7), placed in section 301 of the Budget Act, added 

Social Security requirements in the Senate to the budget resolution.. 
Sec. 13306 BUDGET ENFORCEMENT ACT OF 1990 266

104 STAT. 1388-628 §244

SEC. 13304. REPORT TO THE CONGRESS BY THE BOARD OF

TRUSTEES OF THE OASDI TRUST FUNDS REGARDING THE ACTUARIAL BALANCE OF THE 

TRUST FUNDS.

Section 201(c) of the Social Security Act (42 U.S.C. 401(c)) is 

amended by inserting after the first sentence following clause 

(5) the following new sentence: “Such statement shall include a 

finding by the Board of Trustees as to whether the Federal OldAge and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, individually and collectively, are in 

close actuarial balance (as defined by the Board of Trustees).”.231

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.

 231 This full section currently reads as follows: “The report provided for in 

paragraph (2) of this subsection shall include a statement of the assets of, and 

the disbursements made from, the Trust Funds during the preceding fiscal 

year, an estimate of the expected future income to, and disbursements to be 

made from, the Trust Funds during each of the next ensuing five fiscal years, 

and a statement of the actuarial status of the Trust Funds. Such statement 

shall include a finding by the Board of Trustees as to whether the Federal OldAge and Survivors Insurance Trust Fund and the Federal Disability Insurance 

Trust Fund, individually and collectively, are in close actuarial balance (as 

defined by the Board of Trustees). Such report shall include an actuarial opinion by the Chief Actuary of the Social Security Administration certifying that 

the techniques and methodologies used are generally accepted within the actuarial profession and that the assumptions and cost estimates used are reasonable. Such report shall also include an actuarial analysis of the benefit disbursements made from the Federal Old-Age and Survivors Insurance Trust 

Fund with respect to disabled beneficiaries. Such report shall be printed as a 

House document of the session of the Congress to which the report is made.”
267 BUDGET ENFORCEMENT ACT OF 1990 Sec. 13401

§245 104 STAT. 1388-628

Subtitle D—Treatment of Fiscal Year

1991 Sequestration

SEC. 13401. RESTORATION OF FUNDS SEQUESTERED.

(a) ORDER RESCINDED.—Upon the enactment of this Act, the 

orders issued by the President on August 25, 1990, and October 

15, 1990, pursuant to section 252 of the Balanced Budget and 

Emergency Deficit Control Act of 1985 are hereby rescinded.

(b) AMOUNTS RESTORED.—Any action taken to implement 

the orders referred to in subsection (a) shall be reversed, and 

any sequestrable resource that has been reduced or sequestered 

by such orders is hereby restored, revived, or released and shall 

be available to the same extent and for the same purpose as if 

the orders had not been issued.

(c) FURLOUGHED EMPLOYEES.—(1) Federal employees furloughed as a result of the lapse in appropriations from midnight 

October 5, 1990, until the enactment of House Joint Resolution 

666232 shall be compensated at their standard rate of compensation for the period during which there was a lapse in appropriations.

(2) All obligations incurred in anticipation of the appropriations made and authority granted by House Joint Resolution 

666233 for the purposes of maintaining the essential level of activity to protect life and property and bringing about orderly 

termination of government functions are hereby ratified and 

approved if otherwise in accord with the provisions of that Act.

Subtitle E—Government-sponsored 

Enterprises

SEC. 13501. FINANCIAL SAFETY AND SOUNDNESS OF GOVERNMENT-SPONSORED 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.234

 232 H.J. Res. 666, “Making further continuing appropriations for fiscal year 

1991” was enacted on October 9, 1990. Public Law 101-412. 233 See above note for information related to H.J. Res. 666. 234 Originally, in 1972, the Student Loan Marketing Association was a government-sponsored enterprise (GSE). After its operations were privatized, its 

GSE charter was terminated in 2004.
Sec. 13501 BUDGET ENFORCEMENT ACT OF 1990 268

104 STAT. 1388-629 §246

(b) TREASURY DEPARTMENT STUDY AND PROPOSED LEGISLATION.—

(1) The Department of the Treasury shall prepare and 

submit to Congress no later than April 30, 1991, a study 

of GSEs and recommended legislation.

(2) The study shall include an objective assessment of 

the financial soundness of GSEs, the adequacy of the existing regulatory structure for GSEs, the financial exposure of the Federal Government posed by GSEs, and the 

effects of GSE activities on Treasury borrowing.

(c) CONGRESSIONAL BUDGET OFFICE STUDY.—

(1) The Congressional Budget Office shall prepare and 

submit to Congress no later than April 30, 1991, a study of 

GSEs.

(2) The study shall include an analysis of the financial 

risks each GSE assumes, how Congress may improve its 

understanding of those risks, the supervision and regulation of GSEs’ risk management, the financial exposure of 

the Federal Government posed by GSEs, and the effects of 

GSE activities on Treasury borrowing.

(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.

(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.
269 BUDGET ENFORCEMENT ACT OF 1990 Sec. 13501

§246 104 STAT. 1388-630

(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) REQUIREMENT TO REPORT LEGISLATION.—(1) The 

committees of jurisdiction in the House shall prepare and report to the House no later than September 15, 1991, legislation to ensure the financial soundness of GSEs and to minimize the possibility that a GSE might require future assistance from the Government.

(2) It is the sense of the Senate that the committees of jurisdiction in the Senate shall prepare and report to the Senate no later than September 15, 1991, legislation to ensure 

the financial safety and soundness of GSEs and to minimize 

the possibility that a GSE might require future assistance 

from the Government.

(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.
270

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271

UNFUNDED MANDATES REFORM ACT OF 1995
272

UNFUNDED MANDATES REFORM ACT OF 1995

S. 1, PUBLIC LAW 104-4; 109 STAT. 48; MARCH 22, 1995

Sponsor: Sen Dirk Kempthorne [ID] 

January 4, 1995 Introduced in Senate

January 9, 1995 Committee on Governmental Affairs. Reported to Senate by Senator Roth with amendments. Without written 

report.

January 9, 1995 Committee on Budget. Reported to Senate by Senator 

Domenici with amendments. Without written report.

January 11, 1995 By Senator Roth from Committee on Governmental 

Affairs filed written report. Report No. 104-1. Additional and minority views filed.

January 12, 1995 Senator Domenici filed report, Committee on the Budget. Report 104-2. 

January 27, 1995 Passed Senate with an amendment: 86-10 (Record Vote 

61).

February 1, 1995 Passed House without objection.

February 3, 1995 Resolving differences – Senate actions: Senate disagreed to the amendments of the House by Voice Vote.

March 13, 1995 Conference report H. Rept. 104-76 filed.

March 15, 1995 Conference report agreed to in Senate: Senate agreed to 

conference report by Yea-Nay Vote. 91-9. Record Vote 

No: 104.

March 16, 1995 Conference report agreed to in House by the Yeas and 

Nays: 394 - 28 (Roll no. 252).

March 16, 1995 Cleared for White House.

March 21, 1995 Presented to President.

March 22, 1995 Signed by President.

March 22, 1995 Became Public Law No: 104-4
§250 2 U.S.C. 1501

UNFUNDED MANDATES

REFORM ACT OF 1995

______

[PUBLIC LAW 104–4; 109 STAT. 48.§2; S. 1; MARCH 22, 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. [2 U.S.C. 1501 note] SHORT TITLE.

This Act may be cited as the “Unfunded Mandates Reform

Act of 1995”.

SEC. 2. [2 U.S.C. 1501] 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;
Sec. 3 UNFUNDED MANDATES REFORM ACT OF 1995 274

2 U.S.C. 1502 §250

(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 containing 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. [2 U.S.C. 1502] 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)235 shall have the meanings as so

defined; and

(2) the term “Director” means the Director of the Congressional Budget Office.

 235 See title IV of the Budget Act for Federal mandates, §141, supra.
275 UNFUNDED MANDATES REFORM ACT OF 1995 Sec. 101

§251 109 STAT. 50

SEC. 4. [2 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)).

SEC. 5. [2 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.

(a) IN GENERAL.—Title IV of the Congressional Budget and 

Impoundment Control Act of 1974 is amended by—

(1) inserting before section 401 the following:

‘‘PART A—GENERAL PROVISIONS”; and

(2) adding at the end thereof the following new part:236

[...]

 236 Section 101 added Part B (sections 421 through 428) to the Congressional Budget Act of 1974. See ''141-148, supra.
Sec. 102 UNFUNDED MANDATES REFORM ACT OF 1995 276

109 STAT. 60 §252

(b) TECHNICAL AND CONFORMING AMENDMENTS.—Section 

1(b) of the Congressional Budget and Impoundment Control 

Act of 1974 is amended—

(1) by inserting ‘‘Part A—General Provisions” before the 

item relating to section 401; and

(2) by inserting after the item relating to section 407 the 

following:237

[...]

SEC. 102. ASSISTANCE TO COMMITTEES AND STUDIES.238

The Congressional Budget and Impoundment Control Act of 

1974 is amended—

(1) in section 202—

(A) in subsection (c)—

(i) by redesignating paragraph (2) as paragraph 

(3); and

(ii) by inserting after paragraph (1) the following 

new paragraph:

‘‘(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.’’; and

(B) by amending subsection (h) to read as follows:

‘‘(h) 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—

 237 This subsection added technical amendments and a table of contents. 238 This section revised section 202 of the Congressional Budget Act of 1974 

adding new requirements for CBO. It added a requirement to the budget resolution contents in section 301 of that Act.
277 UNFUNDED MANDATES REFORM ACT OF 1995 Sec. 102

§252 109 STAT. 60

‘‘(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 ‘‘(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.’’; and

(2) in section 301(d) by adding at the end thereof the 

following new sentence: ‘‘Any Committee of the House of 

Representatives or the Senate that anticipates that the 

committee will consider any proposed legislation establish-
Sec. 104 UNFUNDED MANDATES REFORM ACT OF 1995 278

109 STAT. 62 §254

ing, 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.’’.

SEC. 103. [2 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 [2. U.S.C. 658 et seq.].

SEC. 104. REPEAL OF CERTAIN ANALYSIS BY CONGRESSIONAL

BUDGET OFFICE.239

Section 403 of the Congressional Budget and Impoundment 

Control Act of 1974 is amended—

(1) in subsection (a)—

(A) by striking out paragraph (2);

(B) in paragraph (3) by striking out ‘‘paragraphs (1) and 

(2)’’ and inserting in lieu thereof ‘‘paragraph (1)’’; and

(C) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively;

(2) by striking out ‘‘(a)’’; and

(3) by striking out subsections (b) and (c).

 239 This section amended section 402 of the Congressional Budget Act of 

1974. See §132, supra. That section was numbered as section 403 in the Act, 

as enacted, but was renumbered §402 by the Budget Enforcement Act of 1997 

(Public Law 105–33, title X, §10116(c)(1), 111 Stat. 692.).
279 UNFUNDED MANDATES REFORM ACT OF 1995 Sec. 106

§256 2 U.S.C. 1513

SEC. 105. [2 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. [2 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 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. [2 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:
Sec. 110 UNFUNDED MANDATES REFORM ACT OF 1995 280

2 U.S.C. 1511 note §260

“(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. [2 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) 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. [2 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.240

SEC. 110. [2 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.

 240 No additional authorization of appropriations have been made for this 

purpose. The Congressional Budget Office has fulfilled the requirements under this title in its annual appropriations. The requirement of CBO to fulfill 

the requirements under the Act, though, do not lapse upon the expiration of 

the authorization of appropriations. 
281 UNFUNDED MANDATES REFORM ACT OF 1995 Sec. 202

§262 2 U.S.C. 1532

TITLE II—REGULATORY 

ACCOUNTABILITY AND REFORM

SEC. 201. [2 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. [2 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 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;
Sec. 203 UNFUNDED MANDATES REFORM ACT OF 1995 282

2 U.S.C. 1533 §263

(B) 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. [2 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.
283 UNFUNDED MANDATES REFORM ACT OF 1995 Sec. 205

§265 2 U.S.C. 1535

SEC. 204. [2 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.

(b) MEETINGS BETWEEN STATE, LOCAL, TRIBAL AND FEDERAL OFFICERS.—The Federal Advisory Committee Act (5

U.S.C. App.)241 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. [2 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 costeffective 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.

 241 From General Services Administration: “The Federal Advisory Committee Act (Pub. L. 92-463) became law in 1972 and is the legal foundation defining how federal advisory committees operate.”
Sec. 208 UNFUNDED MANDATES REFORM ACT OF 1995 284

2 U.S.C. 1538 §268

(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. [2 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. [2 U.S.C. 1537] PILOT PROGRAM ON SMALL GOVERNMENT FLEXIBILITY.

(a) IN GENERAL242.—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. [2 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

 242 OMB Report on Agency Compliance: OMB has designated “several ongoing EPA projects as small government pilot projects ... [of] cooperative regulatory enforcement agreements, the development of communications aids to 

reduce the burden of understanding and complying with agency regulations, 

and efforts to increase small community involvement in regulatory development.” 
285 UNFUNDED MANDATES REFORM ACT OF 1995 Sec. 302

§272 2 U.S.C. 1552

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. [2 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.243

TITLE III—REVIEW OF

FEDERAL MANDATES

SEC. 301. [2 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. [2 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 consider 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;

 243 Unfunded Mandates Reform Act of 1995 was enacted March 22, 1995. 
Sec. 302 UNFUNDED MANDATES REFORM ACT OF 1995 286

2 U.S.C. 1552 §272

(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.
287 UNFUNDED MANDATES REFORM ACT OF 1995 Sec. 302

§272 2 U.S.C. 1552

(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.

(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

(A) prepare and publish a preliminary report on its

activities under this title, including preliminary recommendations pursuant to subsection (a);

(B) publish in the Federal Register a notice of availability of the preliminary report; and

(C) provide copies of the preliminary report to the

public upon request.

(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 immediate-
Sec. 304 UNFUNDED MANDATES REFORM ACT OF 1995 288

2 U.S.C. 1554 §274

ly 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. [2 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.244

(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 

government and private persons (including agencies) for property and services used to carry out its duties under this title.

SEC. 304. [2 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

 244 Section 3109(b) reads that an agency enter into temporary services 

“without regard to—

“(1) the provisions of this title governing appointment in the competitive 

service;

“(2) chapter 51 and subchapter III of chapter 53 of this title; and

“(3) section 6101(b) to (d) of title 41, except in the case of stenographic reporting services by an organization. ”
289 UNFUNDED MANDATES REFORM ACT OF 1995 Sec. 401

§277 2 U.S.C. 1571

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. [2 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. [2 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 1996.245

TITLE IV—JUDICIAL REVIEW

SEC. 401. [2 U.S.C. 1571] JUDICIAL REVIEW.

(a) AGENCY STATEMENTS ON SIGNIFICANT REGULATORY 

ACTIONS.—

(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,246 and only as provided under subparagraph (B).

 245 Funds were appropriated for the Advisory Commission on Intergovernmental Relations in the Treasury, Postal Services and General Government 

Appropriations Act of 1996 (Public Law 104-52; 109 Stat. 468). For the fiscal 

year ending September 30, 1996, $784,000 was appropriated, “of which 

$450,000 shall be available only for the purposes of the prompt and orderly 

termination of the Advisory Commission on Intergovernmental Relations.” 

The Advisory Commission was terminated on September 30, 1996. 246 5 U.S.C.706. “To the extent necessary to decision and when presented, 

the reviewing court shall decide all relevant questions of law, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action. The reviewing court shall compel 

agency action unlawfully withheld or unreasonably delayed”.
Sec. 401 UNFUNDED MANDATES REFORM ACT OF 1995 290

2 U.S.C. 1571 §277

(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 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 providedinsubsection(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.
291

STATUTORY PAY–AS–YOU–GO ACT OF 2010
292

STATUTORY PAY-AS-YOU-GO ACT OF 2010

H. J. RES. 45, PUBLIC LAW 111-139, 124 STAT. 8

Sponsor: No Sponsor

April 29, 2009 Introduced in House

April 29, 2009 Passed/agreed to in House: Pursuant to the 

provisions of S. Con. Res. 13, H.J. Res. 45 is 

considered passed House.

January 20, 2010 Senate Committee on Finance discharged by 

Unanimous Consent.

January 28, 2010 Passed/agreed to in Senate: Passed Senate, 

under the order of 12/22/2009, having 

achieved 60 votes in the affirmative, with an 

amendment by Yea-Nay Vote. 60 - 39. Record 

Vote Number: 14.

February 4, 2010 Resolving differences – House actions: On 

motion to adopt the second portion of the divided question Agreed to by the Yeas and 

Nays: 233 - 187 (Roll no. 48).

February 4, 2010 Cleared for White House.

February 4, 2010 Presented to President.

February 12, 2010 Signed by President.

February 12, 2010 Became Public Law No: 111-139 
§283 2 U.S.C. 932

STATUTORY

PAY–AS–YOU–GO ACT OF 2010 ______ 

[PUBLIC LAW 111–139; 124 STAT. 8; FEBRUARY 12, 2010]

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. [2 U.S.C. 931 note] SHORT TITLE.

This title may be cited as the “Statutory Pay-As-You-Go

Act of 2010”.

SEC. 2. [2 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. [2 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 of the Congressional Budget and Impoundment Control Act of

1974 and in section 250 of BBEDCA66 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), 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. 3 STATUTORY PAY-AS-YOU-GO ACT OF 2010 294

2 U.S.C. 932 §283

(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.
295 STATUTORY PAY-AS-YOU-GO ACT OF 2010 Sec. 4

§284 2 U.S.C. 933

SEC. 4. [2 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 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-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 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
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2 U.S.C. 933 §284

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.

(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 THE HOUSES.—

(i) IN GENERAL.—Prior to the adoption of a report of a committee of conference on a PAYGO Act
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§284 2 U.S.C. 933

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),(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:
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2 U.S.C. 933 §284

“(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 PayAs-You-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 LEGISLATION.—

(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
299 STATUTORY PAY-AS-YOU-GO ACT OF 2010 Sec. 4

§284 2 U.S.C. 933

the same subsection of section 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) BASELINES.—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 SAVINGS 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 STATEMENTS.—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 pursu-
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2 U.S.C. 933 §284

ant 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.

(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
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§284 2 U.S.C. 933

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 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
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2 U.S.C. 933 §284

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 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 1974.247

(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 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.248

 247 Section 313 of the Budget Act, (“the Byrd Rule”), sets out a procedure by 

which extraneous provisions are stricken from a bill or joint resolution in the

Senate. A provision deemed “extraneous” is removed but the measure continues to be considered. It may be waived by 60 votes. See §120 and §123, supra. 248 Provisions designated as emergencies under this subsection are not entered on S-Paygo scorecards and are not counted for purposes of clause 10 of 

rule XXI in the House (Cutgo). 
303 STATUTORY PAY-AS-YOU-GO ACT OF 2010 Sec. 6

§286 2 U.S.C. 935

SEC. 5. [2 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. [2 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 budgetyear 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 non-
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2 U.S.C. 936 §287

exempt 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

11249, 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—

(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. [2 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;250 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

 249 See section 255 of BBEDCA, supra at §207. Amended by BBA of 2013. 250 “AMT” is the “Alternative Minimum Tax.” 
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§287 2 U.S.C. 936

(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—

(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).
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(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 exemption 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.
307 STATUTORY PAY-AS-YOU-GO ACT OF 2010 Sec. 7

§287 2 U.S.C. 936

(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.
Sec. 7 STATUTORY PAY-AS-YOU-GO ACT OF 2010 308

2 U.S.C. 936 §287

Any adjustments shall include budgetary effects in all

years from these policy changes.

(f) PERMANENT EXTENSION OF MIDDLE-CLASS TAX 

CUTS.—

(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).
309 STATUTORY PAY-AS-YOU-GO ACT OF 2010 Sec. 7

§287 2 U.S.C. 936

(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 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 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
Sec. 8 STATUTORY PAY-AS-YOU-GO ACT OF 2010 310

2 U.S.C. 937 §288

(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 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.

(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. [2 U.S.C. 937] APPLICATION OF BBEDCA.

For purposes of this title—

(1) notwithstanding section 275 of BBEDCA, 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;
311 STATUTORY PAY-AS-YOU-GO ACT OF 2010 Sec. 10

§290 124 STAT. 21

(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.251

(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 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.”.

(c) Section 256(c) of BBEDCA is repealed.252

 251 Before its repeal, section 256(a) read as follows:

“AUTOMATIC SPENDING INCREASES.—Automatic spending increases are increases in outlays due to changes in indexes in the following programs:

“Special milk program; and

“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.” 252 Before its repeal, section 256(c) of BBEDCA 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 increas-
Sec. 10 STATUTORY PAY-AS-YOU-GO ACT OF 2010 312

124 STAT. 22 §290

(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 oneyear 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 REDUCTION.—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

 es 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. 
313 STATUTORY PAY-AS-YOU-GO ACT OF 2010 Sec. 11

§291 124 STAT. 23

of the effective period 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 costsharing 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:

[...]

(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:

[...]
Sec. 13 STATUTORY PAY-AS-YOU-GO ACT OF 2010 314

2 U.S.C. 939 §293

SEC. 12. [2 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. [2 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 Action253 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.

 253 Legislation has been introduced in Congress to establish a bipartisan 

commission to develop proposals addressing long term budgetary issues. 

None has been enacted, though this point of order applies to measures recommending changes to OASDI by any commission. 

In the 110th Congress: 

S. 2063, the Bipartisan Task Force for Responsible Fiscal Action Act of 

2007, was introduced by Sen. Kent Conrad [ND]. H.R.3655, the Bipartisan 

Task Force for Responsible Fiscal Action Act of 2007, by Rep. Jim Cooper 

[TN].Hearings were held but no other legislative action was taken on these

bills. 

In the 111th Congress:

S. 2853, the Bipartisan Task Force for Responsible Fiscal Action Act of 

2009, was introduced by Sen. Kent Conrad [ND].

S. 2965, the Commission for Fiscal Sustainability Act of 2010, was introduced by Sen. John Ensign [NV]. 

No legislative action was taken on these bills. 
315 STATUTORY PAY-AS-YOU-GO ACT OF 2010 Sec. 21

§294 124 STAT. 29

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.
316
317

BUDGET CONTROL ACT OF 2011
318

BUDGET CONTROL ACT OF 2011

S. 365, PUBLIC LAW 112.25, 125 STAT. 240

Sponsor: Senator Thomas Richard Harkin

February 16, 2011 Introduced in Senate

February 16, 2011 Committee on Health, Education, Labor, and 

Pensions. Original measure reported to Senate by Senator Harkin. Without written report.

February 17, 2011 Passed/agreed to in Senate: Passed Senate 

without amendment by Unanimous Consent.

August 1, 2011 Passed/agreed to in House: On passage 

Passed with amendment by recorded vote: 269 

- 161 (Roll no. 690).

August 2, 2011 Resolving differences -- Senate actions: Senate 

agreed in the House amendment to the bill by 

Yea-Nay Vote. 74 - 26. Record Vote Number: 

123.

August 2, 2011 Presented to President.

August 2,2011 Signed by President.

August 2,2011 Became Public Law No: 112-025
§295 125 STAT. 240

BUDGET CONTROL ACT OF 2011

______

[PUBLIC LAW 112–25; 125 STAT. 240; AUGUST 2, 2011]

To provide for budget control.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) 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. 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 320

125 STAT. 241 §295

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:254

[...]

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:255

[...]

SEC. 103. REPORTS AND ORDERS.

Section 254 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended as follows:256

[...]

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:257

[...]

 254 This section is omitted: It amended section 251 of BBEDCA and the most 

up-to-date language of that section may be found herein. See §202, supra. The 

discretionary spending limits were first set forth in the Budget Enforcement 

Act of 1990. The Omnibus Budget Reconciliation Act of 1993 and BEA of 1997 

both revised and extended the limits. They ended after fiscal year 2002. 

Though a different direction was taken, the BCA reestablished the limits 

through fiscal year 2021 (divided between defense and nondefense categories). 255 This section is omitted: It amended section 250 of BBEDCA and the most 

up-to-date language of that section may be found herein. See §201, supra. 256 This section is omitted: It amended section 254 of BBEDCA and the most 

up-to-date language may be found herein. See §206, supra. 257 This section is omitted: It amended section 314 of the Budget Act and the 

most up-to-date language of that section may be found herein. See §124, supra.
321 BUDGETCONTROL ACT OF 2011 Sec. 106

§295 125 STAT. 247

SEC. 106. [2 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;

(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
Sec. 106 BUDGET CONTROL ACT OF 2011 322

125 STAT. 249 §295

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.—

(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).
323 BUDGETCONTROL ACT OF 2011 Sec. 201

§295 125 STAT. 250

(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.

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
Sec. 202 BUDGET CONTROL ACT OF 2011 324

125 STAT. 250 §295

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 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 pro-
325 BUDGETCONTROL ACT OF 2011 Sec. 302

§295 125 STAT. 251

ceed 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.

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:

[...]

(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.”.

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:258

[...]

(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.”.

 258 This section added section 251A to BBEDCA, see §203, supra, and 

amended by the Bipartisan Budget Act of 2013. See §296, supra.
Sec. 401 BUDGET CONTROL ACT OF 2011 326

124 STAT. 260 §295

TITLE IV—JOINT SELECT

COMMITTEE ON DEFICIT

REDUCTION

SEC. 401. [2 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
327 BUDGET CONTROL ACT OF 2011 Sec. 401

§295 125 STAT. 256

(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.

(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.
Sec. 401 BUDGET CONTROL ACT OF 2011 328

124 STAT. 260 §295

(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.259

(ii) The minority leader of the Senate shall appoint three members from among Members of the

Senate.260

(iii) The Speaker of the House of Representatives shall appoint three members from among

Members of the House of Representatives.261

(iv) The minority leader of the House of Representatives shall appoint three members from

among Members of the House of Representatives.262

(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.263 The Speaker of

the House of Representatives shall appoint the

second Co-Chair from among the members of the

joint committee.264 The Co-Chairs shall be appointed 

not later than 14 calendar days after the date of

enactment of this Act.

 259 The Majority Leader of the Senate, Senator Harry Read of Nevada, appointed the following Senators: Senator Patty Murray of Washington; Senator Max Baucus of Montana; and Senator John Kerry of Massachusetts. 260 The Minority Leader of the Senate, Senator Mitch McConnell of Kentucky, appointed the following Senators: Senator John Kyl of Arizona; Senator Rob Portman of Ohio; and Senator Pat Toomey of Pennsylvania. 261 The 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; and Representative 

Dave Camp of Michigan. 262 The 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; and Representative Chris Van Hollen of Maryland. 263 The Majority Leader of the Senate, Senator Harry Reid of Nevada, appointed Senator Patty Murray of Washington, as Co-Chair of the Select 

Committee on Deficit Reduction. 264 The 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.
329 BUDGET CONTROL ACT OF 2011 Sec. 401

§295 124 STAT. 261

(ii) STAFF DIRECTOR.—The Co-Chairs, acting

jointly, shall hire the staff director of the joint

committee.265

(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 Co-Chairs, 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.—

(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

 265 On September 2, 2011, Mark Prater, Deputy Staff Director and Chief 

Counsel of the Republican Staff of the Senate Finance Committee was appointed as Staff Director for the Select Committee. On September 6, 2011 

Sarah Kuehl, a Senior Budget Analyst on the Democratic Staff of the Senate 

Budget Committee was appointed as Deputy Staff Director. 
Sec. 401 BUDGET CONTROL ACT OF 2011 330

124 STAT. 262 §295

(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 CoChairs.

(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 Co-Chairs 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 Co-Chairs, following their determination

that there is good cause for failure to comply

with such requirement.
331 BUDGET CONTROL ACT OF 2011 Sec. 402

§295 124 STAT. 263

(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.—

(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, 2012.266

SEC. 402. [2 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.267

(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 pe-

 266 The Joint Select Committee on Deficit Reduction, established by the 

Budget Control Act of 2011, ended on January 31, 2012 without having made 

any recommendations as to deficit reduction for purposes of calculating sequestration for the purpose of calculating the deficit reduction budget goal 

under section 251A(3) of the Balanced Budget and Emergency Deficit Control 

Act of 1985. See supra at §203. 267 No legislative language was ever introduced pursuant to this subsection 

since a majority of Members of the Joint Select Committee did not vote in 

favor of any proposed text.
Sec. 402 BUDGET CONTROL ACT OF 2011 332

125 STAT. 263 §295

riod, 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 reconsider

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,

2011.268

 268 On November 21, 2011, the Co-Chairs of the Joint Select Committee on 

Deficit Reduction, Representative Jeb Hensarling and Senator Patty Murray, 

released a statement that said it would not be possible to come to any agreement before the committee’s deadline. No vote on passage of a joint select 

committee bill was taken pursuant to this paragraph. The Joint Select Committee did not report a bill and no legislation was enacted under its terms 

during its existence. The failure to enact the required deficit reduction set in 

motion the sequestration procedure in effect through 2024 (as extended). 
333 BUDGET CONTROL ACT OF 2011 Sec. 402

§295 125 STAT. 264

(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. 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 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.
Sec. 402 BUDGET CONTROL ACT OF 2011 334

125 STAT. 265 §295

(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 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.
335 BUDGET CONTROL ACT OF 2011 Sec. 404

§295 125 STAT. 265

(3) VETOES.—If the President vetoes the joint committee 

bill, 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.

(g) LOSS OF PRIVILEGE.269—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. FUNDING.

Funding for the joint committee shall be derived in equal 

portions from—

(1) the applicable accounts270 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.271

SEC. 404. RULEMAKING.

The provisions of this title are enacted by Congress272—

(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.

 269 Since the Joint Select Committee on Deficit Reduction did not vote on or 

report a bill, When it ended, and neither House had considered such a measure, the privilege referred to here had never been invoked and expired on December 23, 2011. 270 The “applicable accounts” are not specified but derived from various existing House appropriations. 271 2 U.S.C. § 31a-2c: “Upon the written request of the Majority or Minority 

Whip of the Senate, the Secretary of the Senate shall transfer during any fiscal year, from the appropriations account appropriated under the headings 

‘Salaries, Officers and Employees’ and ‘offices of the majority and minority 

whips’, such amount as either whip shall specify to the appropriations account, 

within the contingent fund of the Senate, ‘miscellaneous items’.” 272 Provisions included in legislation provided for under this title that recommended changes to the Rules of the House or the Standing Rules of the 

Senate would be considered solely advisory under the terms set forth under 

section 401(b)(3)(B)(i) of this title. Such text did not have privileged status.
Sec. 502 BUDGET CONTROL ACT OF 2011 336

125 STAT. 266 §295

TITLE V—PELL GRANT AND 

STUDENT LOAN PROGRAM

CHANGES

SEC. 501. FEDERAL PELL GRANTS273.

Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 

(20 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.274

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).”.

 273 CBO estimated Pell Grants spending would increase by $4 billion in fiscal year 2012, $8 billion in fiscal year 2013, and $5 billion in fiscal year 2014. 

274 From the August 1, 2011 CBO estimate: “Beginning July 1, 2012, the 

BCA eliminates the interest subsidy on subsidized student loans for almost all 

graduate students while a borrower is in school, in the post-school grace period, and during any authorized deferment period.”
337 BUDGET CONTROL ACT OF 2011 Sec. 504

§295 20 U.S.C. 1089 note

SEC. 503. TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES.275

Section 455(b)(8) of the Higher Education Act of 1965 (20

1087e(b)(8)) is amended—

(1) in subparagraph (A)—

(A) by amending the header to read as follows: “(A) 

INCENTIVES 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 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. [20 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)276, 1098a277) shall not apply to the amendments made by this title, or to any regulations promulgated under those amendments.

 275 From the August 1, 2011 CBO estimate of the BCA: “Beginning July 1, 

2012, the BCA terminates, with one exception, the Secretary of Education’s 

authority to make incentive payments to borrowers to encourage the on-time 

repayment of their federal loans.” 276 20 USC 1089(c) provides in part that “any regulatory changes initiated 

by the Secretary affecting [certain education programs] that have not been 

published in final form by November 1 prior to the start of the award year 

shall not become effective until the beginning of the second award year after 

such November 1 date.” 277 By waiving 20 USC 1098a, this section renders inapplicable requirements for certain public involvement in the development of proposed regulations. 
338
339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BIPARTISAN BUDGET ACT OF 2013
340

CONTINUING APPROPRIATIONS RESOLUTION, 2014

(BIPARTISAN BUDGET ACT OF 2013)

H. J. RES. 59, PUBLIC LAW 113-67, 127 STAT. 1165

Sponsor: Representative Harold Rogers

September 10, 2013 Introduced in House.

September 20, 2013 Passed/agreed to in House: On passage Passed 

by recorded vote: 230 - 189 (Roll No. 478).

September 27, 2013 Passed/agreed to in Senate: Passed Senate 

with an amendment by Yea-Nay Vote. 54 - 44. 

Record Vote Number: 209.

September 29, 2013 Resolving differences – House actions: On 

agreeing to the Senate amendment with 

amendment #1 Agreed to by the Yeas and 

Nays: 248 - 174 (Roll no. 497).

September 30, 2013 Resolving differences – House actions: On receding from the House amendments, and concurring in the Senate amendment with 

amendment Agreed to by recorded vote: 228 -

201 (Roll no. 504).

December 12, 2013 Resolving differences – House actions: On motion that the House recede and concur with an 

amendment in the Senate amendment Agreed 

to by recorded vote: 332 - 94 (Roll no. 640).

December 18, 2013 Resolving differences – Senate actions: Senate 

agreed to the House amendment to the Senate 

amendment by Yea-Nay Vote. 64 - 36. Record 

Vote Number: 281.

December 19, 2013 Presented to President.

December 26, 2013 Signed by President.

December 26, 2013 Became Public Law 113-67
§296 127 STAT. 1165

BIPARTISAN BUDGET ACT OF 2013

[PUBLIC LAW 113-67; 127 STAT. 1165; H. J. Res. 59; DECEMBER 26, 2013]

Making continuing appropriations for fiscal year 2014, and for 

other purposes. 

Resolved by the Senate and House of Representatives of the 

United States of America in Congress assembled, That

DIVISION A—BIPARTISAN BUDGET AGREEMENT

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE.—This division may be cited as the “Bipartisan Budget Act of 2013”.278

(b) TABLE OF CONTENTS.—The table of contents of this division is as follows:

DIVISION A—BUDGET ENFORCEMENT AND DEFICIT REDUCTION

SEC. 1. Short title and table of contents.

TITLE I—BUDGET ENFORCEMENT

SUBTITLE A—AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT 

CONTROL ACT OF 1985

Sec. 101. Amendments to the Balanced Budget and Emergency Deficit Control Act of 1985.

SUBTITLE B—ESTABLISHING A CONGRESSIONAL BUDGET

Sec. 111. Fiscal year 2014 budget resolution.

Sec. 112. Limitation on advance appropriations in the Senate.

Sec. 113. Rule of construction in the House of Representatives.

Sec. 114. Additional Senate budget enforcement.

Sec. 115. Authority for fiscal year 2015 budget resolution in the House of 

Representatives.

Sec. 116. Authority for fiscal year 2015 budget resolution in the Senate.

Sec. 117. Exclusion of savings from PAYGO scorecards.

Sec. 118. Exercise of rulemaking powers.

SUBTITLE C—TECHNICAL CORRECTIONS

Sec. 121. Technical corrections to the Balanced Budget and Emergency Defi- cit Control Act of 1985.

Sec. 122. Technical corrections to the Congressional Budget Act of 1974.

 278 H. J. Res. 59 included the Bipartisan Budget Act of 2013. It became 

Public Law 113-67 on December 26, 2013. It included budget-related provisions in Title I, found here. “Division A” included “Titles II—Prevention of 

Waste, Fraud, and Abuse; Title III—Natural Resources; Title IV—Federal 

and Civilian Military Retirement; Title V—Higher Education; Title VI—

Transportation; Title VII—Miscellaneous Provisions. The Act included “Division B—Medicare and Other Health Related Provisions”. These are omitted. 

Originally an appropriations Act, it did not include annual appropriations.
Sec. 101 BIPARTISAN BUDGET ACT OF 2013 342

127 STAT. 1166 §296

TITLE I—BUDGET ENFORCEMENT

Subtitle A—Amendments To the 

Balanced Budget and Emergency 

Deficit Control Act Of 1985

SEC. 101. AMENDMENTS TO THE BALANCED BUDGET AND 

EMERGENCY DEFICIT CONTROL ACT OF 1985.

(a) REVISED DISCRETIONARY SPENDING LIMITS.—Section 

251(c) of the Balanced Budget and Emergency Deficit Control 

Act of 1985 is amended by striking paragraphs (1) through (10) 

and inserting the following new paragraphs:279

“(1) for fiscal year 2014—

“(A) for the revised security category, 

$520,464,000,000 in new budget authority; and

“(B) for the revised nonsecurity category, 

$491,773,000,000 in new budget authority;

“(2) for fiscal year 2015—

“(A) for the revised security category, 

$521,272,000,000 in new budget authority; and

“(B) for the revised nonsecurity category, 

$492,356,000,000 in new budget authority;

“(3) for fiscal year 2016—

“(A) for the revised security category, 

$577,000,000,000 in new budget authority; and

“(B) for the revised nonsecurity category, 

$530,000,000,000 in new budget authority;

“(4) for fiscal year 2017—

“(A) for the revised security category, 

$590,000,000,000 in new budget authority; and

“(B) for the revised nonsecurity category, 

$541,000,000,000 in new budget authority;

“(5) for fiscal year 2018—

“(A) for the revised security category, 

$603,000,000,000 in new budget authority; and

“(B) for the revised nonsecurity category, 

$553,000,000,000 in new budget authority;

 279 Discretionary spending limits, as revised by the Bipartisan Budget Act 

of 2013 (BBA of 2013), enforce levels for the security and nonsecurity categories for fiscal years 2014 and 2015. The BBA of 2013 did not revise the levels 

for fiscal years 2016 through 2021, but did amend sections 251 and 251A of 

BBEDCA, where those limits live, to more accurately reflect these limits. 

Under section 251A of BBEDCA, the limits are annually revised downward 

by OMB’s Sequestration Preview Report, which is included in the President’s 

budget submission required by 31 U.S. C. 1105(a), see §305, infra.
343 BIPARTISAN BUDGET ACT OF 2013 Sec. 101

§296 127 STAT. 1167

“(6) for fiscal year 2019—

“(A) for the revised security category, 

$616,000,000,000 in new budget authority; and

“(B) for the revised nonsecurity category, 

$566,000,000,000 in new budget authority;

“(7) for fiscal year 2020—

“(A) for the revised security category, 

$630,000,000,000 in new budget authority; and

“(B) for the revised nonsecurity category, 

$578,000,000,000 in new budget authority; and

“(8) for fiscal year 2021—

“(A) for the revised security category, 

$644,000,000,000 in new budget authority; and

“(B) for the revised nonsecurity category, 

$590,000,000,000 in new budget authority;”.

(b) DIRECT SPENDING ADJUSTMENTS FOR FISCAL YEARS 

2014 AND 2015.—(1) Section 251A of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as redesignated by subsection (d), is amended by adding at the end the following new 

paragraph:

“(10) IMPLEMENTING DIRECT SPENDING REDUCTIONS FOR 

FISCAL YEARS 2014 AND 2015.—(A) OMB shall make the calculations necessary to implement the direct spending reductions calculated pursuant to paragraphs (3) and (4) 

without regard to the amendment made to section 251(c) 

revising the discretionary spending limits for fiscal years 

2014 and 2015 by the Bipartisan Budget Act of 2013.

“(B) Paragraph (5)(B) shall not be implemented for fiscal 

years 2014 and 2015.”.

(2) Paragraph (5)(B) of section 251A of the Balanced Budget 

and Emergency Deficit Control Act of 1985, as redesignated by 

subsection (d)(2)(C) of this section, is amended by striking “On” 

and inserting “Except as provided by paragraph (10), on”.

(c) EXTENSION OF DIRECT SPENDING REDUCTIONS FOR FISCAL YEARS 2022 AND 2023.—Paragraph (6), as redesignated by 

subsection (d)(2)(C) of this section, of section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 is 

amended by inserting “(A)” before “On the date” and by adding 

at the end the following new subparagraph:

“(B) On the dates OMB issues its sequestration preview 

reports for fiscal year 2022 and for fiscal year 2023, pursuant to section 254(c), the President shall order a sequestration, effective upon issuance such that—

“(i) the percentage reduction for nonexempt direct 

spending for the defense function is the same percent as 

the percentage reduction for nonexempt direct spending 

for the defense function for fiscal year 2021 calculated 

under paragraph (3)(B); and
Sec. 101 BIPARTISAN BUDGET ACT OF 2013 344

127 STAT. 1168 §296

“(ii) the percentage reduction for nonexempt direct 

spending for nondefense functions is the same percent 

as the percentage reduction for nonexempt direct spending for nondefense functions for fiscal year 2021 calculated under paragraph (4)(B).”.

(d) CONFORMING AMENDMENTS.—Part C of title II of the 

Balanced Budget and Emergency Deficit Control Act of 1985 (2 

U.S.C. 900 et seq.) is amended—

(1) in section 250(c)(4) (2 U.S.C. 900(c)(4)), by adding at 

the end the following:

“(D) The term ‘revised security category’ means discretionary appropriations in budget function 050.

“(E) The term ‘revised nonsecurity category’ means 

discretionary appropriations other than in budget function 050.

“(F) The term ‘category’ means the subsets of discretionary appropriations in section 251(c). Discretionary 

appropriations in each of the categories shall be those 

designated in the joint explanatory statement accompanying the conference report on the Balanced Budget Act 

of 1997. New accounts or activities shall be categorized 

only after consultation with the Committees on Appropriations and the Budget of the House of Representatives and the Senate and that consultation shall, to the 

extent practicable, include written communication to 

such committees that affords such committees the opportunity to comment before official action is taken with 

respect to new accounts or activities.”; and

(2) in section 251A (2 U.S.C. 901a)—

(A) by striking, in the matter preceding paragraph 

(1), “Unless” through “as follows:” and inserting the following: “Discretionary appropriations and direct spending accounts shall be reduced in accordance with this 

section as follows:”;

(B) by striking paragraphs (1) and (2);

(C) by redesignating paragraphs (3) through (11) as 

paragraphs (1) through (9), respectively;

(D) in paragraph (2), as redesignated, by striking 

“paragraph (3)” and inserting “paragraph (1)”;

(E) in paragraph (3), as redesignated, by striking 

“paragraph (4)” each place it appears and inserting 

“paragraph (2)”;

(F) in paragraph (4), as redesignated, by striking 

“paragraph (4)” each place it appears and inserting 

“paragraph (2)”;
345 BIPARTISAN BUDGET ACT OF 2013 Sec. 111

§296 127 STAT. 1169

(G) in paragraph (5), as redesignated—

(i) by striking “paragraph (5)” each place it appears and inserting “paragraph (3)”; and

(ii) by striking “paragraph (6)” each place it appears and inserting “paragraph (4)”;

(H) in paragraph (6), as redesignated—

(i) by striking “paragraph (4)” and inserting 

“paragraph (2)”; and

(ii) by striking “paragraphs (5) and (6)” and inserting “paragraphs (3) and (4)”;

(I) in paragraph (7), as redesignated—

(i) by striking “paragraph (8)” and inserting 

“paragraph (6)”; and

(ii) by striking “paragraph (6)” each place it appears and inserting “paragraph (4)”; and

(J) in paragraph (9), as redesignated, by striking 

“paragraph (4)” and inserting “paragraph (2)”.

Subtitle B—Establishing

A Congressional Budget

SEC. 111. FISCAL YEAR 2014 BUDGET RESOLUTION.

(a) FISCAL YEAR 2014.—For the purpose of enforcing the 

Congressional Budget Act of 1974 for fiscal year 2014, and enforcing, in the Senate, budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, 

and levels provided for in subsection (b) shall apply in the same 

manner as for a concurrent resolution on the budget for fiscal 

year 2014 with appropriate budgetary levels for fiscal year 

2014 and for fiscal years 2015 through 2023.

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—

The Chairmen of the Committee on the Budget of the House of 

Representatives280 and the Senate281 shall each submit a 

statement for publication in the Congressional Record as soon 

as practicable after the date of enactment of this Act that includes—

 280 Representative Paul D. Ryan inserted into the Congressional Record 

“Publication of Budgetary Material”, page H222, the allocations for the 

Committee on Appropriations of the House for fiscal year 2014. On January 

27, 2014, Rep. Ryan further published allocations for authorizing committees 

(Congressional Record, page H1428) as required under this section. 281 Senator Patty Murray inserted “Budget Enforcement Details” into the 

Congressional Record (Page S361, January 15, 2014) required here: relevant 

aggregates and Committee allocations for fiscal years 2014, 2014 through 

2018, 2014 through 2023, and Social Security levels.
Sec. 111 BIPARTISAN BUDGET ACT OF 2013 346

127 STAT. 1169 §296

(1) for the Committee on Appropriations of that House, 

committee allocations for fiscal year 2014 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;

(2) for all committees of that House other than the 

Committee on Appropriations, committee allocations for—

(A) fiscal year 2014;

(B) fiscal years 2014 through 2018 in the Senate only; and

(C) fiscal years 2014 through 2023;

consistent with the May 2013 baseline of the Congressional 

Budget Office adjusted to account for the budgetary effects 

of this Act and legislation enacted prior to this Act but not 

included in the May 2013 baseline of the Congressional 

Budget Office, for the purpose of enforcing section 302 of 

the Congressional Budget Act of 1974;

(3) aggregate spending levels for fiscal year 2014 in accordance with the allocations established under paragraphs 

(1) and (2), for the purpose of enforcing section 311 of the 

Congressional Budget Act of 1974;

(4) aggregate revenue levels for—

(A) fiscal year 2014;

(B) fiscal years 2014 through 2018 in the Senate only; and

(C) fiscal years 2014 through 2023;

consistent with the May 2013 baseline of the Congressional 

Budget Office adjusted to account for the budgetary effects 

of this Act and legislation enacted prior to this Act but not 

included in the May 2013 baseline of the Congressional 

Budget Office, for the purpose of enforcing section 311 of 

the Congressional Budget Act of 1974; and (5) in the Senate only, levels of Social Security revenues 

and outlays for fiscal year 2014 and for the periods of fiscal 

years 2014 through 2018 and 2014 through 2023 consistent 

with the May 2013 baseline of the Congressional Budget Office adjusted to account for the budgetary effects of this Act 

and legislation enacted prior to this Act but not included in 

the May 2013 baseline of the Congressional Budget Office, 

for the purpose of enforcing sections 302 and 311 of the 

Congressional Budget Act of 1974.

(c) FURTHER ADJUSTMENTS.—After the date of enactment of 

this Act, the Chairman of the Committee on the Budget of the 

House of Representatives may reduce the aggregates, allocations, and other budgetary levels included in the statement of 

the Chairman of the Committee on the Budget of the House of 

Representatives referred to in subsection (b) to reflect the 

budgetary effects of any legislation enacted during the 113th 

Congress that reduces the deficit.
347 BIPARTISAN BUDGET ACT OF 2013 Sec. 112

§296 127 STAT. 1170

SEC. 112. LIMITATION ON ADVANCE APPROPRIATIONS IN THE 

SENATE.

(a) POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS IN 

THE 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, 

amendment between the Houses, 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 2014 that first becomes available for 

any fiscal year after 2014 or any new budget authority 

provided in a bill or joint resolution making appropriations for fiscal year 2015 that first becomes available for 

any fiscal year after 2015.

(2) EXCEPTIONS.—Advance appropriations may be provided—

(A) for fiscal years 2015 and 2016 for programs, projects, activities, or accounts identified in a statement 

submitted to the Congressional Record by the Chairman 

of the Committee on the Budget of the Senate under the 

heading “Accounts Identified for Advance Appropriations” in an aggregate amount not to exceed 

$28,852,000,000 in new budget authority in each fiscal 

year;

(B) for the Corporation for Public Broadcasting; and

(C) for the Department of Veterans Affairs for the 

Medical Services, Medical Support and Compliance, and 

Medical Facilities accounts of the Veterans Health Administration.

(3) SUPERMAJORITY WAIVER AND APPEAL.—

(A) Waiver.—In the Senate, paragraph (1) may be 

waived or suspended only by an affirmative vote of 

three-fifths 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.
Sec. 113 BIPARTISAN BUDGET ACT OF 2013 348

127 STAT. 1172 §296

(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 or amendment between the Houses 

shall be 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 paragraph), no further amendment shall 

be in order.

(6) INAPPLICABILITY.—In the Senate, section 402 of S. 

Con. Res. 13 (111th Congress) shall no longer apply.282

(b) EXPIRATION.—Subsection (a) shall expire if a concurrent 

resolution on the budget for fiscal year 2015 is agreed to by the 

Senate and House of Representatives pursuant to section 301 

of the Congressional Budget Act of 1974.

SEC. 113. RULE OF CONSTRUCTION IN THE HOUSE OF REPRESENTATIVES.

In the House of Representatives, for the remainder of the 

113th Congress, the provisions of H. Con. Res. 25 (113th Congress)283, as deemed in force by H. Res. 243 (113th Congress),284

shall remain in force to the extent its budgetary levels are not 

superseded by this subtitle or by further action of the House of 

Representatives.285

 282 Section 402 of S. Con. Res. 13 (111th Congress) set forth the point of order against advance appropriations in the Senate. This point of order was 

replaced under the terms of this subsection. 283 H. Con. Res. 25 considered and passed the House of Representatives on 

March 21, 2013. 284 H. Res. 243 deemed H. Con. Res. 25 as it passed the House of Representatives, to be in force as the budget resolution for fiscal year 2014. Section 

113 affirmed H. Con. Res. 25 to be in force, but only to the extent it was consistent with the levels included in the Bipartisan Budget Act of 2013. 285 No further action was taken on H. Con. Res. 25. This concurrent resolution was originally deemed in force by H. Res. 243, which was then superseded by the BBA of 2013. See note #251. It was deemed in force again for the 

114th Congress by H. Res. 5 until a budget was adopted for fiscal year 2015. 

The deeming resolution extended H. Con. Res. 25, adding a reserve fund for 

measures improving solvency in the Highway Trust Fund.
349 BIPARTISAN BUDGET ACT OF 2013 Sec. 114

§296 127 STAT. 1173

SEC. 114. ADDITIONAL SENATE ENFORCEMENT.

(a) SENATE PAY-AS-YOU-GO SCORECARD.—

(1) IN GENERAL.—Effective on the date of enactment of 

this Act, for the purpose of enforcing section 201 of S. Con. 

Res. 21 (110th Congress), the Chairman of the Committee 

on the Budget of the Senate shall reduce any balances of direct spending and revenues for any fiscal year to zero.

(2) FISCAL YEAR 2015.—After April 15, 2014, but not 

later than May 15, 2014, for the purpose of enforcing section 201 of S. Con. Res. 21 (110th Congress), the Chairman 

of the Committee on the Budget of the Senate shall reduce 

any balances of direct spending and revenues for any fiscal 

year to zero.

(3) PUBLICATION.—Upon resetting the Senate paygo 

scorecard pursuant to paragraph (2), the Chairman of the 

Committee on the Budget of the Senate shall publish a notification of such action in the Congressional Record.

(b) FURTHER ADJUSTMENTS.—With respect to any allocations, aggregates, or levels set or adjustments made pursuant 

to this subtitle, sections 412 through 414 of S. Con. Res. 13 

(111th Congress) shall remain in effect.

(c) DEFICIT-NEUTRAL RESERVE FUND TO REPLACE SEQUESTRATION.—The Chairman of the Committee on the Budget of 

the Senate may revise the allocations of a committee or committees, aggregates, and other appropriate levels and limits set 

pursuant to this subtitle for one or more bills, joint resolutions, 

amendments, motions, or conference reports that amend section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) to repeal or revise the enforcement procedures established under that section, by the 

amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over 

the period of the total of fiscal years 2014 through 2023. For 

purposes of determining deficit-neutrality under this subsection, the Chairman may include the estimated effects of any 

amendment or amendments to the discretionary spending limits in section 251(c) of the Balanced Budget and Emergency 

Deficit Control Act of 1985 (2 U.S.C. 901(c)).286

 286 See page S67 of the Congressional Record (January 7, 2014) for a Colloquy between Senators Patty Murray and Rob Portman, who asked if “the 

intent of the reserve fund under section 114 (c) is to be available to adjust 

certain budgetary levels for deficit-neutral legislation that would replace sequestration?” Responding affirmatively, Senator Murray stated legislation 

altering the statutory limits is in the Budget Committee jurisdiction so a section 306 Budget Act point of order applies. She also stated section 312(b) of 

that Act would apply against legislation causing the statutory limits on discretionary spending to be exceeded. Both apply despite section 114(c).
Sec. 115 BIPARTISAN BUDGET ACT OF 2013 350

127 STAT. 1172 §296

(d) ADDITIONAL DEFICIT-NEUTRAL RESERVE FUNDS.—In the 

Senate only, sections 302, 303, 304, 305, 306, 307, 308, 309, 

310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 322, 323, 

324, 325, 326, 327, 328, 329, 330, 331, 332, 333, 334, 335, 338, 

339, 340, 341, 344, 348, 349, 350, 353, 354, 356, 361, 363, 364, 

365, 366, 367, 368, 369, 371, 376, 378, 379, and 383 of S. Con. 

Res. 8 (113th Congress), as passed the Senate, shall have force 

and effect.

(e) EXPIRATION.—Subsections (a)(2), (c), and (d) shall expire 

if a concurrent resolution on the budget for fiscal year 2015 is 

agreed to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget Act of 1974.

SEC. 115. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION IN THE HOUSE OF REPRESENTATIVES. 287

(a) FISCAL YEAR 2015.—If a concurrent resolution on the 

budget for fiscal year 2015 has not been adopted by April 15, 

2014, for the purpose of enforcing the Congressional Budget 

Act of 1974, the allocations, aggregates, and levels provided for 

in subsection (b) shall apply in the House of Representatives 

after April 15, 2014, in the same manner as for a concurrent 

resolution on the budget for fiscal year 2015 with appropriate 

budgetary levels for fiscal year 2015 and for fiscal years 2016 

through 2024.

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—

In the House of Representatives, the Chairman of the Committee on the Budget shall submit a statement for publication in 

the Congressional Record after April 15, 2014, but not later 

than May 15, 2014,288 containing—

(1) for the Committee on Appropriations, committee allocations for fiscal year 2015 at the total level as set forth in 

section 251(c)(2) of the Balanced Budget and Emergency 

Deficit Control Act of 1985 for the purpose of enforcing section 302 of the Congressional Budget Act of 1974;

 287 H. Con. Res. 96 passed the House of Representatives on April 10, 2014 

as the Concurrent Resolution on the Budget for Fiscal Year 2015. It was, 

however, not deemed to be in force, and no further legislative action was taken on the measure in the 113th Congress. It’s provisions were not extended 

into the 114th Congress, and hence it expired as a legislative measure and 

had no force or effect as the budget resolution for fiscal year 2015. The budget 

resolution year 2015 was enforced through H. Res. 5 of the 114th Congress 

which deemed provisions of H. Con. Res. 25 to be in force for fiscal year 2015. 288 Chairman Paul D. Ryan placed the aggregates, allocations, and other 

budgetary levels required by this section into the Congressional Record on 

April 29, 2014. These levels are on page H3288 of the Congressional Record 

(113th Congress). They were deemed in force for fiscal year 2015 by H. Res. 5 

(114th Congress), which deemed H. Con. Res. 25 instead of the House-passed 

budget resolution for fiscal year 2015, H. Con. Res. 96).
351 BIPARTISAN BUDGET ACT OF 2013 Sec. 115

§296 127 STAT. 1173

(2) for all committees other than the Committee on Appropriations, committee allocations for fiscal year 2015 and 

for the period of fiscal years 2015 through 2024 at the levels 

included in the most recent baseline of the Congressional 

Budget Office, as adjusted for the budgetary effects of any 

provision of law enacted during the period beginning on the 

date such baseline is issued and ending on the date of submission of such statement, for the purpose of enforcing section 302 of the Congressional Budget Act of 1974; and

(3) aggregate spending levels for fiscal year 2015 and 

aggregate revenue levels for fiscal year 2015 and for the period of fiscal years 2015 through 2024, at the levels included in the most recent baseline of the Congressional Budget 

Office, as adjusted for the budgetary effects of any provision 

of law enacted during the period beginning on the date such 

baseline is issued and ending on the date of submission of 

such statement, for the purpose of enforcing section 311 of 

the Congressional Budget Act of 1974.

(c) ADDITIONAL MATTER.—The statement referred to in 

subsection (b) may also include for fiscal year 2015, the matter 

contained in title IV (reserve funds) and in sections 601, 603(a), 

605(a), and 609 of H. Con. Res. 25 (113th Congress), as adopted 

by the House, updated by one fiscal year, including updated 

amounts for section 601.

(d) FISCAL YEAR 2015 ALLOCATION TO THE COMMITTEE ON 

APPROPRIATIONS.—If the statement referred to in subsection 

(b) is not filed by May 15, 2014, then the matter referred to in 

subsection (b)(1) shall be submitted by the Chairman of the 

Committee on the Budget for publication in the Congressional 

Record on the next day that the House of Representatives is in 

session.

(e) ADJUSTMENTS.—The Chairman of the Committee on the 

Budget of the House of Representatives may adjust the levels 

included in the statement referred to in subsection (b) to reflect 

the budgetary effects of any legislation enacted during the 

113th Congress that reduces the deficit or as otherwise necessary.289

(f) APPLICATION.—Subsections (a), (b), (c), (d), and (e) shall 

no longer apply if a concurrent resolution on the budget for fiscal year 2015 is agreed to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget 

Act of 1974.290

 289 Section 115(e) authorizes the House Budget Chairman to adjust levels 

for laws enacted in the 113th Congress, and other “necessary” adjustments. 290 Neither Chamber adopted a fiscal year 2015 budget resolution, so these 

subsections applied until a fiscal year 2016 budget resolution was adopted. 
Sec. 116 BIPARTISAN BUDGET ACT OF 2013 352

127 STAT. 1173 §296

SEC. 116. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION IN THE SENATE.

(a) FISCAL YEAR 2015.—For the purpose of enforcing the 

Congressional Budget Act of 1974, after April 15, 2014, and enforcing budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, and levels provided for in subsection (b) shall apply in the Senate in the same 

manner as for a concurrent resolution on the budget for fiscal 

year 2015 with appropriate budgetary levels for fiscal years 

2014 and 2016 through 2024.291

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—

After April 15, 2014, but not later than May 15, 2014, the 

Chairman of the Committee on the Budget of the Senate shall 

file—

(1) for the Committee on Appropriations, committee allocations for fiscal years 2014 and 2015 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;

(2) for all committees other than the Committee on Appropriations, committee allocations for fiscal years 2014, 

2015, 2015 through 2019, and 2015 through 2024 consistent 

with the most recent baseline of the Congressional Budget 

Office for the purpose of enforcing section 302 of the Congressional Budget Act of 1974;

(3) aggregate spending levels for fiscal years 2014 and 

2015 in accordance with the allocations established under 

paragraphs (1) and (2), for the purpose of enforcing section 

311 of the Congressional Budget Act of 1974;

(4) aggregate revenue levels for fiscal years 2014, 2015, 

2015 through 2019, and 2015 through 2024 consistent with 

the most recent baseline of the Congressional Budget Office 

for the purpose of enforcing section 311 of the Congressional Budget Act of 1974; and

(5) levels of Social Security revenues and outlays for fiscal years 2014, 2015, 2015 through 2019, and 2015 through 

2024 consistent with the most recent baseline of the Congressional Budget Office for the purpose of enforcing sections 302 and 311 of the Congressional Budget Act of 1974.

 291 “On January 15, I filed the first of the two budgets in the Senate for fiscal year 2014. Today, pursuant to section 116 of the Bipartisan Budget Act of 

2013, I am filing the budget in the Senate for fiscal year 2015.” Senator Patty 

Murray, p. S2640, Cong. Rec. (113th Congress). The House adopted a budget 

resolution for fiscal year 2015, H. Con. Res. 96, but instead of deeming that 

resolution in force, the House Budget Committee went in a different direction 

and deemed the previous year’s budget resolution, H. Con. Res. 25, to be in 

force, under the terms of the BBA of 2013. 
353 BIPARTISAN BUDGET ACT OF 2013 Sec. 118

§296 127 STAT. 1174

(c) ADDITIONAL MATTER.—The filing referred to in subsection (b) may also include, for fiscal year 2015, the reserve funds 

included in section 114(c) and (d) of this Act, updated by one 

fiscal year.

(d) SUPERSEDING PREVIOUS STATEMENT.—In the Senate,

the filing referred to in subsection (b) shall supersede the 

statement referred to in section 111(b) of this Act.

(e) EXPIRATION.—This section shall expire if a concurrent 

resolution on the budget for fiscal year 2015 is agreed to by the 

Senate and House of Representatives pursuant to section 301 

of the Congressional Budget Act of 1974.292

SEC. 117. EXCLUSION OF SAVINGS FROM PAYGO SCORECARDS.

(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—

Notwithstanding section 1(c) of this division, the budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory PayAs-You-Go Act of 2010.293

(b) SENATE PAYGO SCORECARDS.—Notwithstanding section 

1(c) of this division, the budgetary effects of this Act shall not 

be entered on any PAYGO scorecard maintained for purposes 

of section 201 of S. Con. Res. 21 (110th Congress).294

SEC. 118. EXERCISE OF RULEMAKING POWERS.

The provisions of this subtitle 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.

 292 A budget resolution was not adopted by Congress for fiscal year 2015 so 

the provisions referred to here stayed in effect until superseded by the Concurrent Resolution on the Budget for Fiscal Year 2016. 293 Section 117(a) excludes the budgetary effects of BBA 2013 from the 

Statutory Pay-As-You-Go scorecards. OMB does not count the effects calculating sequestration under the Statutory Pay-As-You-Go Act of 2010. 294 Section 117(b), similar to subsection (a) of this section, excludes the 

budgetary effects of the Bipartisan Budget Act of 2013 from the Senate PayAs-You-Go scorecard. Therefore, in applying the point of order under that 

provision, included in S. Con. Res. 21 (110th Congress), the budget effects of 

this Act will not count when considering legislation comes to the floor of the 

Senate. The Senate Paygo Scorecard (often referred to as the Senate Paygo 

Ledger) was also set to zero under section 114 of this Act. 
Sec. 121 BIPARTISAN BUDGET ACT OF 2013 354

127 STAT. 1175 §296

Subtitle C—Technical Corrections

SEC. 121. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 

1985.

The Balanced Budget and Emergency Deficit Control Act of 

1985 is amended as follows:

(1) In section 252(b)(2)(B), strike “applicable to budget 

year” and insert “applicable to the budget year”.

(2) In section 252(c)(1)(C)(i), strike “paragraph (1)” and 

insert “subsection (b)”.

(3) In section 254(c)(3)(A), strike “subsection 252(b)” and 

insert “section 252(b)”.

(4) In section 254(f)(4), strike “subsection 252(b)” and 

insert “section 252(b)”.

(5) In section 255(a), strike “section 231b(a), 231b(f)(2), 

231c(a), and 231c(f) of title 45 United States Code” and insert “sections 3 and 4 of the Railroad Retirement Act of 

1937 (45 U.S.C. 231 et seq.)”.

(6) In section 255(h), in the item relating to Federal Pell 

Grants, strike “section 401 Title IV” and insert “section 401 

of title IV”.

(7) In the first subsection (j) of section 255 (relating to 

Split Treatment Programs), move the margins for the list 

items two ems to the right.

(8) Redesignate the second subsection (j) of section 255 

(relating to Identification of Programs) as subsection (k).

(9) In section 257(b)(2)(A)(i), strike “differenes” and insert “differences”.

(10) In section 258(a)(1), strike “section 254(j)” and insert “section 254(i)”.

SEC. 122. TECHNICAL CORRECTIONS TO THE CONGRESSIONAL 

BUDGET ACT OF 1974. 

The Congressional Budget Act of 1974 is amended as follows:

(1) In sections 301(a)(6) and 301(a)(7), strike “For purposes” and insert “for purposes”.

(2) In section 301(a), in the matter following paragraph 

(7), strike “old age” and insert “old-age”.

(3) In section 302(g)(2)(A), strike “committee on the 

Budget” and insert “Committee on the Budget”.

(4) In section 305(a)(1), strike “clause 2(l)(6) of rule XI” 

and insert “clause 4 of rule XIII”.

(5) In section 305(a)(5), strike “provisions of rule XXIII” 

and insert “provisions of rule XVIII”.
355 BIPARTISAN BUDGET ACT OF 2013 Sec. 122

§296 127 STAT. 1176

(6) In section 305(b)(1), strike “section 304(a)” and insert 

“section 304”.

(7) In section 306 strike “No” and insert “(a) In The Senate.—In the Senate, no”, strike “of either House” and “in 

that House”, strike “of that House”, and add at the end the 

following new subsection:

“(b) In The House Of Representatives.—In the House of 

Representatives, no bill or joint resolution, or amendment 

thereto, or conference report thereon, dealing with any matter 

which is within the jurisdiction of the Committee on the Budget shall be considered unless it is a bill or joint resolution which 

has been reported by the Committee on the Budget (or from the 

consideration of which such committee has been discharged) or 

unless it is an amendment to such a bill or joint resolution.”.

(8) In section 308(d), in the subsection heading, strike 

“Scorekeeping Guidelines.—” and insert “SCOREKEEPING 

GUIDELINES.—”.

(9) In section 310(c)(1)(A)(i) and (ii), strike “under that 

paragraph by more than” and insert “under that paragraph 

by more than—”.

(10) In section 314(d)(2), strike subparagraph (A), redesignate subparagraphs (B) and (C) as subparagraphs (A) and 

(B) respectively, in subparagraph (A), as redesignated, 

strike “under subparagraph (A)” and insert “under paragraph (1)”, and in subparagraph (B), as redesignated, strike 

“under subparagraph (B)” and insert “under subparagraph 

(A)”.

(11) In section 315, add at the end the following new 

sentence: “In the case of a reported bill or joint resolution 

considered pursuant to a special order of business, a point 

of order under section 303 shall be determined on the basis 

of 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.”.

(12) In section 401(b)(2), strike “section 302(b)” and insert “section 302(a)”.

(13) In section 401(c), add at the end the following new 

paragraph:

“(3) In the House of Representatives, subsections (a) and 

(b) shall not apply to new authority described in those subsections to the extent that a provision in a bill or joint resolution, or an amendment thereto or a conference report 

thereon, establishes prospectively for a Federal office or position a specified or minimum level of compensation to be 

funded by annual discretionary appropriations.”.
Sec. 122 BIPARTISAN BUDGET ACT OF 2013 356

127 STAT. 1176 §296

(14) In section 421(5)(A)(i)(II), strike “subparagraph 

(B))” and insert “subparagraph (B)”.

(15) In section 505(c), strike “section 406(b)” both places 

it appears and insert “section 405(b)”.

(16) In section 904(c)(2), strike “258A(b)(3)(C)(I)” and 

“258(h)(3)” and insert “258A(b)(3)(C)(i)” and “258B(h)(3)”, 

respectively, and strike “and 314(e)” and insert “314(e), and 

314(f)”.

(17) In section 904(d)(3), strike “258A(b)(3)(C)(I)” and 

“258(h)(3)” and insert “258A(b)(3)(C)(i)” and “258B(h)(3)”, 

respectively, and strike “and 312(c)” and insert “312(c), 

314(e), and 314(f)”
357

PART II

ADDITIONAL LAWS OF THE

THE CONGRESSIONAL BUDGET PROCESS
358
359

CONTENTS

TITLE 31, UNITED STATES CODE: PRESIDENT’S BUDGET

TITLE 31, UNITED STATES CODE: ANTIDEFICIENCY ACT

TITLE 31, UNITED STATES CODE: PUBLIC DEBT

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION 

ACT OF 2003
360
361

TITLE 31 OF THE UNITED STATES CODE
362
363

TITLE 31 OF THE

UNITED STATES CODE

______

CHAPTER 11—THE BUDGET AND FISCAL, BUDGET,

AND PROGRAM INFORMATION

§1101. Definitions. 

§1102. Fiscal year. 

§1103. Budget ceiling.

§1104. Budget and appropriations authority of the President. 

§1105. Budget contents and submission to Congress.

§1106. Supplemental budget estimates and changes. 

§1107. Deficiency and supplemental appropriations.

§1108. Preparation and submission of appropriations requests to the President. 

§1109. Current programs and activities estimates.

§1110. Year-ahead requests for authorizing legislation. 

§1111. Improving economy and efficiency.

§1112. Fiscal, budget, and program information. 

§1113. Congressional information.

§1114. Budget information on consulting services. (Repealed)

§1115. Federal Government and agency performance plans. 

§1116. Agency performance reporting.

§1117. Exemptions.

§1118. Pilot projects for performance goals.

§1119. Pilot projects for performance budgeting.

§1120. Federal Government and agency priority goals.

§1121. Quarterly priority progress reviews and use of performance information. 

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

§1123. Chief Operating Officers.

§1124. Performance Improvement Officers and the Performance Improvement Council.

§1125. Elimination of unnecessary agency reporting.
364
 

§304 365

TITLE 31—MONEY AND FINANCE

SUBTITLE II—THE BUDGET PROCESS

CHAPTER 11—THE BUDGET AND FISCAL, BUDGET, AND

PROGRAM INFORMATION

§ 1101. DEFINITIONS.

In this chapter—

(1) “agency” includes the District of Columbia government but does not include the legislative branch or the Supreme Court.

(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.

§ 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.

§ 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.

§ 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
§ 1105 TITLE 31 OF THE UNITED STATES CODE 366

§1105(a)(1)-(5) §305

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 this chapter. The President has access to, and

may inspect, records of an agency to obtain information.

§ 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.
367 TITLE 31 OF THE UNITED STATES CODE § 1105

§305 §1105(a)(6)-(16)

(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.

(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.
§ 1105 TITLE 31 OF THE UNITED STATES CODE 368

§1105(a)(17)-(24) §305

(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.).

(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.
369 TITLE 31 OF THE UNITED STATES CODE § 1105

§305 §1105(a)(25)-(34)

(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.
§ 1105 TITLE 31 OF THE UNITED STATES CODE 370

§1105(a)(35)-(36) §305

(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;

(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—
371 TITLE 31 OF THE UNITED STATES CODE § 1105

§305 §1105(a)(36)-(38)

(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 estimates 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) information on estimates of appropriations for the 

fiscal year following the fiscal year for which the budget is 

submitted for the following accounts of the Department of 

Veterans Affairs:

(A) Veterans Benefits Administration, Compensation 

and Pensions.

(B) Veterans Benefits Administration, Readjustment 

Benefits.

(C) Veterans Benefits Administration, Veterans Insurance and Indemnities.

(D) Veterans Health Administration, Medical Services.

(E) Veterans Health Administration, Medical Support and Compliance.

(F) Veterans Health Administration, Medical Facilities.

(38) a separate statement for the Crow Settlement Fund 

established under section 411 of the Crow Tribe Water 
§ 1105 TITLE 31 OF THE UNITED STATES CODE 372

§1105(a)(39)-(e)(1) §305

Rights Settlement Act of 2010, which shall include the estimated amount of deposits into the Fund, obligations, and 

outlays from the Fund.

(39) 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 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;
373 TITLE 31 OF THE UNITED STATES CODE § 1105

§305 §1105(e)(1)(B)-(e)(2)

(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,

(G) resource recovery facilities,

(H) public buildings,

(I) space or communications facilities,

(J) railroads, and

(K) federally assisted housing.
§ 1105 TITLE 31 OF THE UNITED STATES CODE 374

§1105(e)(3)-(g)(1) §305

(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.
375 TITLE 31 OF THE UNITED STATES CODE § 1106

§306 §1106(a)

(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.

(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.

§ 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.295 The summary shall include—

(1) for that fiscal year—

(A) substantial changes in or reappraisals of estimates of expenditures and receipts;

 295 This statutorily mandated supplemental budget material is transmitted

by the Director of the Office of Management and Budget to Congress as the 

“Mid-Session Review” of each year.
§ 1107 TITLE 31 OF THE UNITED STATES CODE 376

§1107 §307

(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.

(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.

§ 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 
377 TITLE 31 OF THE UNITED STATES CODE § 1108

§308 §1108(a)-(c)

that section. The President shall transmit promptly to Congress without change, proposed deficiency and supplemental 

appropriations submitted to the President by the legislative 

branch and the judicial branch.

§ 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 1501296 of this title. The

 296 The section referred to here, section 1501 of Title 31 of the United 

States Code reads as follows: 

§1501. DOCUMENTARY EVIDENCE REQUIREMENT FOR GOVERNMENT OBLIGATIONS

“(a) An amount shall be recorded as an obligation of the United States Government only when supported by documentary evidence of-

“(1) a binding agreement between an agency and another person (including an agency) that is—

“(A) in writing, in a way and form, and for a purpose authorized by 

law; and

“(B) executed before the end of the period of availability for obligation 

of the appropriation or fund used for specific goods to be delivered, real 

property to be bought or leased, or work or service to be provided;

“(2) a loan agreement showing the amount and terms of repayment;

“(3) an order required by law to be placed with an agency;

“(4) an order issued under a law authorizing purchases without advertising—
§ 1108 TITLE 31 OF THE UNITED STATES CODE 378

§1108(c)-(f) §308

head of the agency shall 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 Commission297 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

 “(A) when necessary because of a public exigency;

“(B) for perishable subsistence supplies; or

“(C) within specific monetary limits;

“(5) a grant or subsidy payable-

“(A) from appropriations made for payment of, or contributions to, 

amounts required to be paid in specific amounts fixed by law or under 

formulas prescribed by law;

“(B) under an agreement authorized by law; or

“(C) under plans approved consistent with and authorized by law;

“(6) a liability that may result from pending litigation;

“(7) employment or services of persons or expenses of travel under law;

“(8) services provided by public utilities; or

“(9) other legal liability of the Government against an available appropriation or fund.

“(b) A statement of obligations provided to Congress or a committee of Congress by an agency shall include only those amounts that are obligations consistent with subsection (a) of this section.” 297 The Interstate Commerce Commission was eliminated in 1995 and its 

remaining functions were transferred to the Surface Transportation Board.
379 TITLE 31 OF THE UNITED STATES CODE § 1110

§310 §1110

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.

§ 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.

(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.

§ 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.

§ 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
§ 1112 TITLE 31 OF THE UNITED STATES CODE 380

§1112(a)-(d) §312

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.

§ 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

Committee 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.
381 TITLE 31 OF THE UNITED STATES CODE § 1113

§313 §1113(a)-(c)

(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.

§ 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;
§ 1113 TITLE 31 OF THE UNITED STATES CODE 382

§1113(d)-(e) §313

(2) when requested, provide assistance to committees of 

Congress and members of Congress in obtaining information from the sources in the directory; and

(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;
383 TITLE 31 OF THE UNITED STATES CODE § 1115

§315 §1115(a)

(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.

§ 1114. BUDGET INFORMATION ON CONSULTING SERVICES (REPEALED).298

§ 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;

 298 This section, “§1114: Budget Information on Consulting Services”, was 

repealed by Public Law 103–355, title II, §2454(c)(2), Oct. 13, 1994, 108 Stat. 

3326. The original section from Public Law 97–258, Sept. 13, 1982, 96 Stat. 

916 required the head each agency to include in its budget justifications 

submitted annually to Congress amounts for consulting services and a description why such services were needed.
§ 1115 TITLE 31 OF THE UNITED STATES CODE 384

§1115(b) §315

(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.299—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—

(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;

 299 5 U.S.C. 306(c) states “The performance plan required by section 1115(b) 

of title 31 shall be consistent with the agency's strategic plan.” Section 306 

sets forth the requirements of such a strategic plan. 
385 TITLE 31 OF THE UNITED STATES CODE § 1115

§315 §1115(b)-(c)

(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 

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
§ 1115 TITLE 31 OF THE UNITED STATES CODE 386

§1115(d)-(h) §315

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 recip-
387 TITLE 31 OF THE UNITED STATES CODE § 1116

§316 §1116(a)-(b)

ient, 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 

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.

§ 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
§ 1116 TITLE 31 OF THE UNITED STATES CODE 388

§1116(c)(1)-(c)(6) §316

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 program 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 limita-
389 TITLE 31 OF THE UNITED STATES CODE § 1116

§316 §1116(d)-(h)

tions 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 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 
§ 1118 TITLE 31 OF THE UNITED STATES CODE 390

§1118(a)-(b) §318

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.

§ 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.

§ 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.
391 TITLE 31 OF THE UNITED STATES CODE § 1119

§319 §1119(a)-(d)

(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. 

§ 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
§ 1120 TITLE 31 OF THE UNITED STATES CODE 392

§1120(a)(1)-(a)(3) §320

(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.

§ 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 improve 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;
393 TITLE 31 OF THE UNITED STATES CODE § 1120

§320 §1120(b)(1)

(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 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.
§ 1121 TITLE 31 OF THE UNITED STATES CODE 394

§1121(a)-(b) §321

(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.

§ 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 

(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—
395 TITLE 31 OF THE UNITED STATES CODE § 1122

§322 §1122(a)-(b)

(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.

§ 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 

priority 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 
§ 1122 TITLE 31 OF THE UNITED STATES CODE 396

§1122(b) §322

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.
397 TITLE 31 OF THE UNITED STATES CODE § 1123

§323 §1123(a)-(b)

(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;

(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.

§ 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—
§ 1124 TITLE 31 OF THE UNITED STATES CODE 398

§1124(a) §324

(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 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

§ 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 
399 TITLE 31 OF THE UNITED STATES CODE § 1124

§324 §1124(b)

5,300 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;

(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;

 300 The reference to 5 U.S.C. 306 (“sections” should be singular) indicates 

“agency strategic plans”. This section sets forth a list of required elements for 

a strategic plan, including a “comprehensive mission statement covering the 

major functions and operations of the agency.” 
§ 1124 TITLE 31 OF THE UNITED STATES CODE 400

§1124(b) §324

(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, nonprofit 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.
401 TITLE 31 OF THE UNITED STATES CODE § 1125

§325 §1125(a)-(c)

§ 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.
402

 

 

 
403

THE ANTIDEFICIENCY ACT
404

CONTENTS OF THE ANTIDEFICIENCYACT

MONEY AND FINANCE

TITLE 31 OF THE UNITED STATES CODE

§1341. LIMITATIONS ON EXPENDING AND OBLIGATING 

AMOUNTS

§1342. LIMITATIONS ON VOLUNTARY SERVICES

§1349. ADVERSE PERSONNEL ACTIONS

§1350. CRIMINAL PENALTY

§1351. REPORTS ON VIOLATIONS

§1512. APPORTIONMENT AND RESERVES

§1513. OFFICIALS CONTROLLING APPORTIONMENTS

§1514. ADMINISTRATIVE DIVISION OF APPORTIONMENTS

§1515. AUTHORIZED APPORTIONMENTS NECESSITATING DEFICIENCY OR SUPPLEMENTAL APPROPRIATIONS

§1516. EXEMPTIONS

§1517. PROHIBITED OBLIGATIONS AND EXPENDITURES

NOTES ON THE ANTIDEFICIENCY ACT
§332 405

THE ANTIDEFICIENCY ACT

______ 

§ 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.

§ 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 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.
31 USC 1512 ANTIDEFICIENCY ACT 406

§336

§1349. ADVERSE PERSONNEL ACTIONS

(a) An officer or employee of the United States Government 

or of the District of Columbia government violating section 

1341(a) or 1342 of this title shall be subject to appropriate administrative discipline including, when circumstances warrant, 

suspension from duty without pay or removal from office.

(b) An officer or employee who willfully uses or authorizes 

the use of a passenger motor vehicle or aircraft owned or leased 

by the United States Government (except for an official purpose authorized by section 1344 of this title) or otherwise violates section 1344 shall be suspended without pay by the head 

of the agency. The officer or employee shall be suspended for at 

least one month, and when circumstances warrant, for a longer 

period or summarily removed from office.

§1350. CRIMINAL PENALTY

An officer or employee of the United States Government or 

of the District of Columbia government knowingly and willfully 

violating section 1341(a) or 1342 of this title shall be fined not 

more than $5,000, imprisoned for not more than 2 years, or 

both.

§1351. REPORTS ON VIOLATIONS

If an officer or employee of an executive agency or an officer 

or employee of the District of Columbia government violates 

section 1341(a) or 1342 of this title, the head of the 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.

* * * * * * *

§ 1512. APPORTIONMENT AND RESERVES.

(a) Except as provided in this subchapter, an appropriation 

available for obligation for a definite period shall be apportioned to prevent obligation or expenditure at a rate that would 

indicate a necessity for a deficiency or supplemental appropriation for the period. An appropriation for an indefinite period 

and authority to make obligations by contract before appropriations shall be apportioned to achieve the most effective and 

economical use. An apportionment may be reapportioned under 

this section.
407 ANTIDEFICIENCY ACT 31 USC 1513

§337

(b)(1) An appropriation subject to apportionment is apportioned by—

(A) months, calendar quarters, operating seasons, or 

other time periods;

(B) activities, functions, projects, or objects; or

(C) a combination of the ways referred to in clauses (A) 

and (B) of this paragraph.

(2) The official designated in section 1513 of this title to 

make apportionments shall apportion an appropriation under 

paragraph (1) of this subsection as the official considers appropriate. Except as specified by the official, an amount apportioned is available for obligation under the terms of the appropriation on a cumulative basis unless reapportioned.

(c)(1) In apportioning or reapportioning an appropriation, a 

reserve may be established only—

(A) to provide for contingencies;

(B) to achieve savings made possible by or through 

changes in requirements or greater efficiency of operations; or

(C) as specifically provided by law.

(2) A reserve established under this subsection may be 

changed as necessary to carry out the scope and objectives 

of the appropriation concerned. When an official designated 

in section 1513 of this title to make apportionments decides 

that an amount reserved will not be required to carry out 

the objectives and scope of the appropriation concerned, the 

official shall recommend the rescission of the amount in the 

way provided in chapter 11 of this title for appropriation 

requests. Reserves established under this section shall be 

reported to Congress as provided in the Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.).

(d) An apportionment or a reapportionment shall be reviewed at least 4 times a year by the official designated in section 1513 of this title to make apportionments.

§ 1513. OFFICIALS CONTROLLING 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 that is required to be apportioned 

under section 1512 of this title shall apportion the appropriation in writing. An appropriation shall be apportioned not later 

than the later of the following:

(1) 30 days before the beginning of the fiscal year for 

which the appropriation is available; or

(2) 30 days after the date of enactment of the law by 
31 U.S. C. § 1514 ANTIDEFICIENCY ACT 408

§338

which the appropriation is made available.

(b)(1) The President shall apportion in writing an appropriation available to an executive agency (except the Commission) 

that is required to be apportioned under section 1512 of this 

title. The head of each executive agency to which the appropriation is available shall submit to the President information required for the apportionment in the form and the way and at 

the time specified by the President. The information shall be 

submitted not later than the later of the following:

(A) 40 days before the beginning of the fiscal year for 

which the appropriation is available; or

(B) 15 days after the date of enactment of the law by 

which the appropriation is made available.

(2) The President shall notify the head of the executive 

agency of the action taken in apportioning the appropriation 

under paragraph (1) of this subsection not later than the later 

of the following:

(A) 20 days before the beginning of the fiscal year for 

which the appropriation is available; or

(B) 30 days after the date of enactment of the law by 

which the appropriation is made available.

(c) By the first day of each fiscal year, the head of each executive department of the United States Government shall apportion among the major organizational units of the department the maximum amount to be expended by each unit during 

the fiscal year out of each contingent fund appropriated for the 

entire year for the department. Each amount may be changed 

during the fiscal year only by written direction of the head of 

the department. The direction shall state the reasons for the 

change.

(d) An appropriation apportioned under this subchapter 

may be divided and subdivided administratively within the 

limits of the apportionment.

(e) This section does not affect the initiation and operation 

of agricultural price support programs.

§ 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—
409 ANTIDEFICIENCY ACT 31 USC 1515

§339

(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.

§1515. AUTHORIZED APPORTIONMENTS NECESSITATING DEFICIENCY OR SUPPLEMENTAL APPROPRIATIONS.

(a) An appropriation required to be apportioned under section 1512 of this title may be apportioned on a basis that indicates the need for a deficiency or supplemental appropriation to 

the extent necessary to permit payment of such pay increases 

as may be granted pursuant to law to civilian officers and employees (including prevailing rate employees whose pay is fixed 

and adjusted under subchapter IV of chapter 53 of title 5) and 

to retired and active military personnel.

(b)(1) Except as provided in subsection (a) of this section, an 

official may make, and the head of an executive agency may 

request, an apportionment under section 1512 of this title that 

would indicate a necessity for a deficiency or supplemental appropriation only when the official or agency head decides that 

the action is required because of—

(A) a law enacted after submission to Congress of the estimates for an appropriation that requires an expenditure 

beyond administrative control; or

(B) an emergency involving the safety of human life, the 

protection of property, or the immediate welfare of individuals when an appropriation that would allow the United 

States Government to pay, or contribute to, amounts required to be paid to individuals in specific amounts fixed by 

law or under formulas prescribed by law, is insufficient.

(2) If an official making an apportionment decides that an 

apportionment would indicate a necessity for a deficiency or 

supplemental appropriation, the official shall submit immediately a detailed report of the facts to Congress. The report shall 

be referred to in submitting a proposed deficiency or supplemental appropriation.
31 USC 1517 ANTIDEFICIENCY ACT 410

§341

§1516. EXEMPTIONS.

An official designated in section 1513 of this title to make 

apportionments may exempt from apportionment-

(1) a trust fund or working fund if an expenditure from 

the fund has no significant effect on the financial operations 

of the United States Government;

(2) a working capital fund or a revolving fund established for intragovernmental operations;

(3) receipts from industrial and power operations available under law; and

(4) appropriations made specifically for-

(A) interest on, or retirement of, the public debt;

(B) payment of claims, judgments, refunds, and 

drawbacks;

(C) items the President decides are of a confidential 

nature;

(D) payment under a law requiring payment of the 

total amount of the appropriation to a designated payee; 

and

(E) grants to the States under the Social Security 

Act (42 U.S.C. 301 et seq.).

§ 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.

(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.
411 ANTIDEFICIENCY ACT Notes

NOTES ON THE ANTIDEFICIENCY ACT301

Government Accountability Office: 

A Glossary of Terms Used in the Federal Budget Process 

(September 2005)

Antideficiency Act

The Antideficiency Act is a Federal law that:

• Prohibits the making of expenditures or the incurring of obligations 

in advance of an appropriation; 

• Prohibits the incurring of obligations or the making of expenditures 

in excess of amounts available in appropriation or fund accounts unless specifically authorized by law (31 U.S.C. § 1341(a)); 

• Prohibits the acceptance of voluntary or personal services unless authorized by law (31 U.S.C. § 1342); 

• Requires the Office of Management and Budget, via delegation from 

the President, to apportion appropriated funds and other budgetary 

resources for all executive branch agencies (31 U.S.C. § 1512); 

• Requires a system of administrative controls within each agency (see 

31 U.S.C. § 1514 for the administrative divisions established); 

• Prohibits incurring any obligation or making any expenditure in excess of an apportionment or reapportionment or in excess of other 

subdivisions established pursuant to sections 1513 and 1514 of title 

31 of the United States Code (31 U.S.C. § 1517); and 

• Specifies penalties for deficiencies. 

The act permits agencies to reserve funds (that is, withhold them from obligation) under certain circumstances.

Antideficiency Act Violation

An Antideficiency Act Violation occurs when one or more of the following 

happens: 

• Overobligation or overexpenditure of an appropriation or fund 

account (31 U.S.C. § 1341(a)); 

• Entering into a contract or making obligations in advance of an 

appropriation, unless authorized by law (31 U.S.C. § 1341(a)); 

• Acceptance of voluntary service, unless authorized by law (31 

U.S.C. § 1342); or 

• Overobligation or overexpenditure of (1) an apportionment or 

reapportionment or (2) amounts permitted by the administrative 

control of funds regulations (31 U.S.C. § 1517(a)).

 301 This text is derived from A Glossary of Terms Used in the Federal 

Budget Process (September 2005); Government Accountability Office. See 

that volume and GAO documents generally for a complete and authoritative 

description of the Antideficiency Act. 
Notes ANTIDEFICIENCY ACT 412

Antideficiency Act Background

Federal employees violating the Act are subject to two types 

of sanctions: administrative and penal. Employees may be subject to administrative discipline including suspension from duty without pay or removal from office. Employees may also be 

subject to fines, imprisonment, or both.

Reporting Requirements 

Once it has been determined a violation of the Antideficiency Act has occurred, the agency head must report all relevant 

facts and a statement of actions taken to the President and 

Congress and submit a copy of the report to the Comptroller 

General. Penalties for Antideficiency Act violations include 

administrative discipline, such as suspension from duty without pay or removal from office. In addition, an officer or employee convicted of willfully and knowingly violating the law 

shall be fined not more than $5,000, imprisoned for not more 

than 2 years, or both (31 U.S.C. §§ 1349, 1350, 1518, and 1519).

Summary History of the Antideficiency (Various Sources)

The Antideficiency Act has evolved in response to abuses. 

The earliest version of the legislation was enacted in 1870 (16 

Stat. 251) to end executive agencies’ practice of creating coercive deficiencies. Some might intentionally exhaust funds; requiring Congress to provide more funds to prevent violating

contracts. Some spent their entire budget in the first few 

months of a fiscal year, funding the remainder with additional 

appropriations from Congress. The act stated: “It shall not be 

lawful for any department of the government to expend in any 

one fiscal year any sum in excess of appropriations made by 

Congress for that fiscal year, or to involve the government in 

any contract for the future payment of money in excess of such 

appropriations.” In 1905 and 1906, Congress amended it to require apportionment of appropriations in monthly installments 

with criminal penalties imposed for violations.

The Anti-Deficiency Act includes sections of Title 31 not always thought as part of the Act (31 USC 1341). Among others, 

it includes 31 USC 1342; barring voluntary services and 31 

USC 1501-1519, requiring the apportionment of appropriated 

funds before expenditure by agencies.
413

PUBLIC DEBT
414

MONEY AND FINANCE

TITLE 31 OF THE UNITED STATES CODE
§343 415

PUBLIC DEBT

______

§ 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,

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).

§ 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 
31 USC 3101A PUBLIC DEBT 416

§343

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

(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 dis-
417 PUBLIC DEBT 31 USC 3101A

§343

approval 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 

____________” (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.
31 USC 3101A PUBLIC DEBT 418

§343

(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.
419 PUBLIC DEBT 31 USC 3101A

§343

(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 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.
31 USC 3101A PUBLIC DEBT 420

§343

(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 sequestration to reduce spending by 
421 PUBLIC DEBT 31 USC 3123

§344

$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.

* * * * * * *

§ 3123. PAYMENT OF OBLIGATIONS AND INTEREST ON THE PUBLIC DEBT

(a) The faith of the United States Government is pledged to 

pay, in legal tender, principal and interest on the obligations of 

the Government issued under this chapter.

(b) The Secretary of the Treasury shall pay interest due or 

accrued on the public debt. As the Secretary considers expedient, the Secretary may pay in advance interest on the public 

debt by a period of not more than one year, with or without a 

rebate of interest on the coupons.

(c)(1) The Secretary may issue a bond, note, or certificate of 

indebtedness authorized under this chapter whose principal 

and interest are payable in a foreign currency stated in the 

bond, note, or certificate. The Secretary may dispose of the 

bonds, notes, and certificates at a price that is at least par value without complying with section 3102(b)–(d) of this title.

(2) In determining the dollar amount of bonds, notes, and 

certificates of indebtedness that may be issued under this 

chapter, the dollar equivalent of the amount of bonds, notes, 

and certificates payable in a foreign currency is determined by 
31 USC 3321 PUBLIC DEBT 422

§345

the par of the exchange value on the date of issue of the bonds, 

notes, or certificates as published by the Secretary under section 5151 of this title.

(3) The Secretary may designate depositaries in foreign 

countries in which any part of the proceeds of bonds, notes, or 

certificates of indebtedness payable in the foreign currency 

may be deposited.

* * * * * * *

§ 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. 
423

EMERGENCY ECONOMIC 

STABILIZATION ACT OF 2008
424

PAUL WELLSTONE MENTAL 

HEALTH AND ADDICTION EQUITY ACT OF 2007302

H.R.1424, PUBLIC LAW 110-343

Sponsor: Rep. Patrick J. Kennedy (D-RI)

March 9, 2007 Introduced in House

October 15, 2007 Reported (Amended) by the Committee on Education and Labor. H. Rept. 110-374, Part I.

October 15, 2007 Reported (Amended) by the Committee on Ways 

and Means. H. Rept. 110-374, Part II.

March 4, 2008 Reported (Amended) by the Committee on Energy 

and Commerce. H. Rept. 110-374, Part III.

March 5, 2008 Passed House: 268 - 148 (Roll no. 101).

October 1, 2008 Passed Senate: 74 - 25. (Record Vote: 213).

October 3, 2008 Cleared for White House.

October 3, 2008 Presented to President.

October 3, 2008 Signed by President.

October 3, 2008 Became Public Law 110-343

 302 Also known as the Emergency Economic Stabilization Act of 2008.
425

EMERGENCY ECONOMIC

STABILIZATION ACT OF 2008

_______

[PUBLIC LAW 110–343; H.R.1424; 122 STAT. 3765; OCTOBER 3, 2008]

An Act

To provide authority for the Federal Government to purchase and insure 

certain types of troubled assets for the purposes of providing stability to and 

preventing disruption in the economy and financial system and protecting 

taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives 

for energy production and conservation, to extend certain expiring provisions, 

to provide individual income tax relief, and for other purposes.

Be it enacted by the Senate and House of Representatives 

of the United States of America in Congress assembled,

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) 303

and guarantees of troubled assets under section 102,304 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.).305

 303 Section 101(a) of EESA set the terms for the purchase of “troubled assets” by the Secretary of the Treasury on behalf of the Federal Government. 

This term was broadly defined, including allowing the purchase of any “financial instrument that the Secretary ... determines the purchase of which is 

necessary to promote financial market stability”. 304 Section 102 of EESA allowed the Federal Government to “guarantee the 

timely payment of principal of, and interest on, troubled assets” rather than 

purchase the financial instrument outright. This was a more limited form of 

Federal activity than the purchase of the assets, though it was not used extensively by either President George W. Bush or Barack Obama during the 

program’s existence. 305 The Federal Credit Reform Act of 1990 may be found in Title V of the 

Congressional Budget Act of 1974. See §§150-157, supra. 
Sec. 202 EMERGENCY ECONOMIC STABILIZATION 426

(b) COSTS.—For the purposes of section 502(5) of the

Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))306—

(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))307 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 semiannually thereafter, the Office of Management and Budget shall report to the President and the Congress—

(1) the estimate, notwithstanding section 502(5)(F) of

 306 See section 502(5) of Title V of the Congressional Budget Act of 1974. 307 See Title V of the Congressional Budget Act of 1974: 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.”
427 EMERGENCY ECONOMIC STABILIZATION ACT Sec. 203

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. [2 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 sta-
Sec. 203 EMERGENCY ECONOMIC STABILIZATION ACT 428

tistics 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 statistic—

(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.
429 EMERGENCY ECONOMIC STABILIZATION ACT Sec. 204

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.
430
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, 

AND MODERNIZATION ACT OF 2003
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT,

AND MODERNIZATION ACT OF 2003

H.R. 1; PUBLIC LAW 108-391; 117 STAT. 2066

Sponsor: Rep. J. Dennis Hastert (R-IL)

June 25, 2003 Introduced in House

June 27, 2003 Passed/agreed to in House: On passage Passed by 

recorded vote: 216 - 215, 1 Present (Roll no. 332).

July 7, 2003 Passed/agreed to in Senate: Passed Senate in lieu 

of S.1 with an amendment and an amendment to 

the Title by Unanimous Consent.

November 21, 2003 Conference report H. Rept. 108-391 filed.

November 22, 2003 Conference report agreed to in House: On agreeing 

to the conference report Agreed to by the Yeas and 

Nays: 220 - 215 (Roll No. 669).

November 25, 2003 Conference report agreed to in Senate: Senate 

agreed to conference report by Yea-Nay Vote. 54 -

44. Record Vote Number: 459.

November 25, 2003 Cleared for White House.

December 7, 2003 Presented to President.

December 8, 2003 Signed by President.

December 8, 2003 Became Public Law No: 108-173
433

MEDICARE PRESCRIPTION DRUG,

IMPROVEMENT, AND 

MODERNIZATION ACT OF 2003 ______

[PUBLIC LAW 108–173; 117 STAT. 2066; H.R.1, DECEMBER 8, 2003]

An Act

To amend title XVIII of the Social Security Act to provide for a voluntary 

program for prescription drug coverage under the Medicare Program, to modernize the Medicare Program, to amend the Internal Revenue Code of 1986 to 

allow a deduction to individuals for amounts contributed to health savings 

security accounts and health savings accounts, to provide for the disposition 

of unused health benefits in cafeteria plans and flexible spending arrangements, and for other purposes.308

TITLE VIII—COST CONTAINMENT

SUBTITLE A—COST CONTAINMENT309

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)310—

 308 Titles I through VII established “Medicare Part D” – a prescription drug 

benefit within the Medicare Program. Those titles are not included in this 

Compendium. 309 Subtitle A of Title VIII of the Medicare Prescription Drug, Improvement, 

and Modernization Act of 2003 is often called 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. The entirety of that resolution is as follows: “Resolved, That section 803 of the Medicare 

Prescription Drug, Improvement, and Modernization Act of 2003 shall not 

apply during the remainder of the 110th Congress.” 

On January 6, 2009, the House adopted H. Res. 5 (111th Congress) suspending its application for the 111th Congress. From Sec. 3(e): “Section 803 of 

the Medicare Prescription Drug, Improvement, and Modernization Act of 

2003 shall not apply during the One Hundred Eleventh Congress.” 310 Section 1395i of the Title 42 of the U.S. Code reads in pertinent part as 

follows: “It shall be the duty of the Board of Trustees to ...[r]eport to the Con-
Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 434

(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,311 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.

(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.

 gress not later than the first day of April of each year on the operation and 

status of the Trust Fund during the preceding fiscal year and on its expected

operation and status during the current fiscal year and the next 2 fiscal 

years; 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 ... [and to 

report] immediately to the Congress whenever the Board is of the opinion 

that the amount of the Trust Fund is unduly small;”. 311 See §305, supra, for the text of this section of the U.S. Code.
435 MEDICARE MODERNIZATION ACT OF 2003 Sec. 801

(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;

(B) exceeds 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.
Sec. 801 MEDICARE MODERNIZATION ACT OF 2003 436

(ii) PART B.—Premiums paid by non-Federal 

sources under section 1839 of such Act (42 U.S.C. 

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.
437 MEDICARE MODERNIZATION ACT OF 2003 Sec. 802

(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.”

(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 MEDICARE MODERNIZATION ACT OF 2003 438

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,312 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.313

(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—

(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

 312 The 15-day period specified is from the date of the submission of the 

President’s Budget. Under 31 USC 1105(a), the President is required to submit his budget “not later than the first Monday in February” of each year. 

President’s generally comply with this requirement, though President Barack 

Obama has not. 313 Introduced pursuant to this paragraph:

H.R.5480 (110th): Medicare Funding Warning Response Act of 2008; Rep. 

Steny H. Hoyer (D-MD) (by request). 

On February 25, 2008, the bill was introduced in the House. 

On February 29, 2008, it was referred to the Committees on Energy and 

Commerce, the Judiciary, and Ways and Means.

No further legislative action was taken on this measure.
439 MEDICARE MODERNIZATION ACT OF 2003 Sec. 803

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).
Sec. 803 MEDICARE MODERNIZATION ACT OF 2003 440

(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 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. 314 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

 314 The relevant text of clause 8 of rule XVIII is as follows: “Material submitted for printing in the Congressional Record under this clause shall indicate the full text of the proposed amendment, the name of the Member, Delegate, or Resident Commissioner proposing it, the number of the bill or resolution to which it will be offered, and the point in the bill or resolution or 

amendment thereto where the amendment is intended to be offered.”
441 MEDICARE MODERNIZATION ACT OF 2003 Sec. 803

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,315 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.316

(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.

 315 Clause 1 of rule XIV of the Rules of the House provides for the “daily order of business (unless varied by the application of other rules and except for 

the disposition of matters of higher precedence). The “third daily order of 

business” is the reading of the “Pledge of Allegiance to the Flag.” 316 A “legislative day” in the House and Senate does not always follow the 

calendar day and instead depends on when a session of that Chamber adjourns. 

In the Senate, a “day” starts when the Senate meets after an adjournment 

and ends when the Senate next adjourns. Hence, a legislative day may extend over several calendar days or even weeks and months. Lengthy legislative days generally do not occur in the House. 
Sec. 804 MEDICARE MODERNIZATION ACT OF 2003 442

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,317 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.318

(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.

 317 Paragraph (1) of 31 USC 1105(h) indicates a period 15-days from the 

date of the submission of the President’s Budget during which the President 

must submit a proposal to respond to the Medicare warning. See §305, supra. 318 Bills introduced pursuant to this paragraph:

S.2662 [110th Congress]: Medicare Funding Warning Response Act of 2008;

Sen. Max Baucus Max (D-MT) (by request). 

On February 25, 2008, the bill was introduced in the Senate. 

On February 25, 2008, it was referred to the Committee on Finance.

No further legislative action was taken on this measure. 
443 MEDICARE MODERNIZATION ACT OF 2003 Sec. 804

(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 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-fiscalyear 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
Sec. 804 MEDICARE MODERNIZATION ACT OF 2003 444

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.

††
445

PART III

THE UNITED STATES CONGRESS

 

 
446
447

CONTENTS

THE HOUSE OF REPRESENTATIVES

RULES OF THE HOUSE OF REPRESENTATIVES

SEPARATE ORDERS 

JURISDICTION OF THE COMMITTEE ON THE BUDGET OF THE HOUSE OF REPRESENTATIVES

THE SENATE

CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2008

(S. CON. RES. 21)

CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2009

(S. CON. RES. 70)

CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2010

(S. CON. RES. 13)

JURISDICTION OF THE COMMITTEE ON THE BUDGET OF THE SENATE
448

††
449

THE HOUSE OF REPRESENTATIVES
450
451

RULES OF THE HOUSE OF REPRESENTATIVES
452
§360 Clause 1

RULES OF THE HOUSE 

OF REPRESENTATIVES ______

The Rules of the House of Representatives include budgetrelated provisions governing consideration of legislation. The 

central budgetary document of the Federal Government is the 

budget resolution, itself a rulemaking document. Its provisions 

take precedence over House Rules if provisions conflict.

This part of this document includes the budget-related provisions of the standing rules of the House. It contains explanatory material from the Manual of the Rules of the House (113th

Congress) and are incorporated as footnotes. While taken from 

the document prepared by the Clerk of the House and the 

House Parliamentarian, these are not replicated verbatim. It is 

important for an authoritative, complete, and unedited explanation of the House Rules and Manual be reviewed. The section 

numbers and headings are from the House Manual and may be 

cross-referenced to the verbatim notation there. 

“Separate Orders” are also included here. These are additions to the standing rules of the House contained in a House 

Resolution (H. Res. 5 of each new Congress typically, though in 

1995 and 2007 it was “H. Res. 6”) that provides for the organization of that Congress.

RULE X

ORGANIZATION OF COMMITTEES

Clause 1. Committees and Their Legislative Jurisdictions

§ 714. Number and Jurisdiction of Standing Committees.

Clause 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:319

[...]

 319 Other than the Committees on the Budget and on Appropriations, the 

standing committees described in clause 1 of rule X are not included.
Rule X RULES OF THE HOUSE OF REPRESENTATIVES 454

Clause 3(c) §360

§ 716. Appropriations.

Clause 1(b). Committee on Appropriations.

(1) Appropriation of the revenue for the support of the 

Government.

(2) Rescissions of appropriations contained in appropriation Acts.

(3) Transfers of unexpended balances.

(4) Bills and joint resolutions reported by other committees that provide new entitlement authority as defined in 

section 3(9) of the Congressional Budget Act of 1974 and referred to the committee under clause 4(a)(2).

(5) Bills and joint resolutions that provide new budget 

authority, limitation on the use of funds, or other authority 

relating to new direct loan obligations and new loan guarantee commitments referencing section 504(b) of the Congressional Budget Act of 1974.

§ 719. Budget.

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.

Clause 3. Special Oversight Functions

§ 744. Special Oversight.

Clause 3(c). 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.
455 RULES OF THE HOUSE OF REPRESENTATIVES Rule X

§360 Clause 4(a)

Clause 4. Additional Functions of Committees

§ 745. Committee on Appropriations; Budget Hearings.

Clause 4(a)(1).

(A) The Committee on Appropriations shall, within 30 

days after the transmittal of the Budget to Congress each 

year, hold hearings on the Budget as a whole with particular reference to—

(i) the basic recommendations and budgetary policies 

of the President in the presentation of the Budget; and

(ii) the fiscal, financial, and economic assumptions 

used as bases in arriving at total estimated expenditures and receipts.

(B) In holding hearings under subdivision (A), the committee shall receive testimony from the Secretary of the 

Treasury, the Director of the Office of Management and 

Budget, the Chairman of the Council of Economic Advisers, 

and such other persons as the committee may desire.

§ 746. Procedure for Budget Hearings.

Clause 4(a)(1)

(C) A hearing under subdivision (A), or any part thereof, 

shall be held in open session, except when the committee, in 

open session and with a quorum present, determines by 

record vote that the testimony to be taken at that hearing 

on that day may be related to a matter of national security. 

The committee may by the same procedure close one subsequent day of hearing. A transcript of all such hearings shall 

be printed and a copy thereof furnished to each Member, 

Delegate, and the Resident Commissioner.

(D) A hearing under subdivision (A), or any part thereof, 

may be held before a joint meeting of the committee and the 

Committee on Appropriations of the Senate in accordance 

with such procedures as the two committees jointly may determine.

§ 747. Budget Act; 15-day Referral to Appropriations.

Clause 4(a)(2). Pursuant to section 401(b)(2) of the Congressional Budget Act of 1974, when a committee reports a bill or 

joint resolution that provides new entitlement authority as defined in section 3(9) of that Act, and enactment of the bill or 

joint resolution, as reported, would cause a breach of the committee’s pertinent allocation of new budget authority under 

section 302(a) of that Act, the bill or joint resolution may be referred to the Committee on Appropriations with instructions to 

report it with recommendations (which may include an 
Rule X RULES OF THE HOUSE OF REPRESENTATIVES 456

Clause 4(b) §360

amendment limiting the total amount of new entitlement authority provided in the bill or joint resolution). If the Committee on Appropriations fails to report a bill or joint resolution so 

referred within 15 calendar days (not counting any day on 

which the House is not in session), the committee automatically shall be discharged from consideration of the bill or joint resolution, and the bill or joint resolution shall be placed on the 

appropriate calendar.

(3) In addition, the Committee on Appropriations shall 

study on a continuing basis those provisions of law that (on the 

first day of the first fiscal year for which the congressional 

budget process is effective) provide spending authority or permanent budget authority and shall report to the House from 

time to time its recommendations for terminating or modifying 

such provisions.

(4) In the manner provided by section 302 of the Congressional Budget Act of 1974, the Committee on Appropriations 

(after consulting with the Committee on Appropriations of the 

Senate) shall subdivide any allocations made to it in the joint 

explanatory statement accompanying the conference report on 

such concurrent resolution, and promptly report the subdivisions to the House as soon as practicable after a concurrent 

resolution on the budget for a fiscal year is agreed to.

§ 748. Budget. 

Clause 4(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
457 RULES OF THE HOUSE OF REPRESENTATIVES Rule X

§360 Clause 5(a)

(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.

Budget Act Responsibilities

§ 756. Concurrent Resolution on Budget.

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.

(C) 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. 

Clause 5. Election and Membership of Standing Committees

§ 758. Composition of the Budget Committee.

Clause 5(a)(2)

(A) The Committee on the Budget shall be composed of 

members as follows:

(i) Members, Delegates, or the Resident Commissioner who are members of other standing committees, 

including five from the Committee on Appropriations, 

five from the Committee on Ways and Means, and one 

from the Committee on Rules;

(ii) one Member designated by the elected leadership 

of the majority party; and

(iii) one Member designated by the elected leadership of the minority party.

(B) Except as permitted by subdivision (C), a member of 

the Committee on the Budget other than one described in 
Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 458

Clauses 1(a) and 2(c) §363

subdivision (A)(ii) or (A)(iii) may not serve on the committee 

during more than four Congresses in a period of six successive Congresses (disregarding for this purpose any service 

for less than a full session in a Congress)

(C) A Member, Delegate, or Resident Commissioner may 

exceed the limitation of subdivision (B) if elected to serve a 

second consecutive Congress as the chair or a second consecutive Congress as the ranking minority member.

Clause 11. Permanent Select Committee on Intelligence

§ 785. Permanent Select Committee on Intelligence.

Clause 11(c)(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 XIII

CALENDARS AND COMMITTEE REPORTS

Clause 1. Calendars

§ 828. Calendar for Reports of Committees.

Clause 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 appropriations 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.

Clause 2. Filing and Printing of Reports

§ 836. Filing Minority Views.

Clause 2(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 
459 RULES OF THE HOUSE OF REPRESENTATIVES Rule XIII

§363 Clause 3(a) - 3(c)

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 supplemental, 

minority, or additional views as provided in clause 2(l) of rule 

XI.

Clause 3. Content of Reports

§ 837. Single Volume.

Clause 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.

§838. Technical Error.

Clause 3(a)(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.

§ 839. Vote on Reporting.

Clause 3(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.

§ 840. Content of Reports.

Clause 3(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.
Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 460

Clause 3(d) §363

(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.

§ 841. Estimate of Cost.

Clause 3(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);

(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).
461 RULES OF THE HOUSE OF REPRESENTATIVES Rule XIII

§361 Clause 3(e)-3(f)

§ 846. “Ramseyer Rule.”

Clause 3(e)320

(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.

§ 847. Content of Reports on Appropriation Bills.321

Clause 3(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 expend-

 320 The failure of a committee report to comply with the “Ramseyer” rule 

may be remedied by a supplemental report. 321 This provision (formerly clause 3 of rule XXI) became a part of the rules 

under the Committee Reform Amendments of 1974, effective January 3, 1975 

(H. Res. 988, 93d Cong., Oct. 8, 1974, p. 34470). This provision was amended 

on January 14, 1975 (H. Res. 5, 94th Cong., p. 32) to confine its applicability 

to general appropriation bills, and again in the 104th Congress to add subparagraph (1)(B) concerning unauthorized items (sec. 215(d), H. Res. 6, Jan. 

4, 1995, p. 468). Subparagraph (1)(B) was amended in the 107th Congress to 

require more detail on the status of unauthorized appropriations (sec. 2(m), 

H. Res. 5, Jan. 3, 2001, p. 25). Before the House recodified its rules in the 

106th Congress, this provision was found in former clause 3 of rule XXI (H. 

Res. 5, Jan. 6, 1999.
Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 462

Clause 3(g) - 3(h) §363

itures 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—

(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.

§ 848. Comparative Print.

Clause 3(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. 

§ 849. Tax Complexity Analysis.322

Clause 3(h). 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—

(1) 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

(2) 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.

 322 This requirement of a macroeconomic analysis of any tax proposal replaced a provision that authorized the chair of the Committee on Ways and 

Means to request the Joint Committee on Taxation to prepare a dynamic estimate of revenue changes proposed in a measure designated by the Majority 

Leader as major tax legislation (sec. 2(j), H. Res. 5, Jan. 7, 2003, p. 7). The 

former provision was added in the 105th Congress (H. Res. 5, Jan. 7, 1997, p. 

121).
463 RULES OF THE HOUSE OF REPRESENTATIVES Rule XIII

§361 Clause 4(a)-4(c)

Clause 4. Availability of Reports

§ 850. Three-day Layover.

Clause 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.

§ 852. Printed Hearings on Appropriation Bills.

Clause 4(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.
Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 464

Clause 6(a) §361

Clause 5. Privileged Reports, Generally

§ 853. Privileged Reports.

Clause 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, 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.

Clause 6. Privileged Reports by the Committee on Rules

§ 857. Reports From Committee on Rules.

Clause 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
465 RULES OF THE HOUSE OF REPRESENTATIVES Rule XIII

§363 Clause 6(d)-6(f)

(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.

§ 861. Filing Reports.

Clause 6(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 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.

§ 862. Privileged Motion.

Clause 6(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.323

 323 This provision was amended on January 14, 1975 (H. Res. 5, 94th Cong., 

p. 32) to confine its applicability to general appropriation bills, and again in 

the 104th Congress to add subparagraph (1)(B) concerning unauthorized 

items. Subparagraph (1)(B) was amended in the 107th Congress to require 
Rule XIII RULES OF THE HOUSE OF REPRESENTATIVES 466

Clause 8(a)-8(b) §363

§ 863. Specifying Waivers.

Clause 6(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.324

Clause 7. Resolutions of Inquiry

§ 864. Resolution of Inquiry.

Clause 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.

Clause 8. Estimates of Major Legislation

Clause 8(a). An estimate provided by the Congressional 

Budget Office under section 402 of the Congressional Budget 

Act of 1974325 for any major legislation shall, to the extent 

practicable, incorporate the budgetary effects of changes in 

economic output, employment, capital stock, and other macroeconomic variables resulting from such legislation.

(b) An estimate provided by the Joint Committee on Taxation to the Director of the Congressional Budget Office under 

section 201(f)326 of the Congressional Budget Act of 1974 for 

any major legislation shall, to the extent practicable, incorporate the budgetary effects of changes in economic output, em-

 more detail on the status of unauthorized appropriations (sec. 2(m), H. Res. 5, 

Jan. 3, 2001, p. 25). 324 This provision was added to the rules under the Committee Reform 

Amendments of 1974, effective January 3, 1975 (H. Res. 988, 93rd Congress, 

Oct. 8, 1974, p. 34470), and is similar to the ‘‘Ramseyer Rule’’ requirements of 

paragraph (e) relating to bills and joint resolutions repealing or amending

existing law. This clause is applicable to resolutions reported from the Committee on Rules that propose direct permanent repeal or amendment of a rule 

of the House, but does not apply to resolutions providing temporary waivers 

of rules during the consideration of particular legislative business, or to a 

special order of business resolution providing for the consideration of a bill 

with textual modifications that would affect certain changes in House rules 

on enactment of the bill into law, but not itself repealing or amending any 

rule (May 27, 1993, p. 11597). 325 See supra at §132. 326 See supra at §107.
467 RULES OF THE HOUSE OF REPRESENTATIVES Rule XIII

§363 Clause 8(c)-8(d)

ployment, capital stock, and other macroeconomic variables resulting from such legislation.

(c) An estimate referred to in this clause shall, to the extent 

practicable, include.— (1) a qualitative assessment of the budgetary effects (including macroeconomic variables described in paragraphs 

(a) and (b)) of such legislation in the 20-fiscal year period 

beginning after the last fiscal year of the most recently 

agreed to concurrent resolution on the budget that set forth 

appropriate levels required by section 301327 of the Congressional Budget Act of 1974; and

(2) an identification of the critical assumptions and the 

source of data underlying that estimate.

(d) As used in this clause.— (1) the term “major legislation” means any bill or joint 

resolution.— (A) for which an estimate is required to be prepared 

pursuant to section 402328 of the Congressional Budget 

Act of 1974 and that causes a gross budgetary effect (before incorporating macroeconomic effects) in any fiscal 

year over the years of the most recently agreed to concurrent resolution on the budget equal to or greater 

than 0.25 percent of the current projected gross domestic product of the United States for that fiscal year; or

(B) designated as such by the chair of the Committee 

on the Budget for all direct spending legislation other 

than revenue legislation or the Member who is chair or 

vice chair, as applicable, of the Joint Committee on Taxation for revenue legislation329; and

(2) the term “budgetary effects” means changes in revenues, outlays, and deficits.

 327 See supra at §111. 328 See supra at §132 329 The term “revenue legislation” is defined in section 201(f) of the Congressional Budget Act of 1974 (see supra at '107: The applicable text of that 

section reads 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 House 

shall determine all estimates with respect to scoring points of order and with 

respect to the execution of the purposes of this Act.” 
Rule XVIII RULES OF THE HOUSE OF REPRESENTATIVES 468

Clause 10(a)-10(c) §361

RULE XVIII

THE COMMITTEE OF THE WHOLE HOUSE ON THE 

STATE OF THE UNION

Clause 10. Concurrent Resolution on the Budget330

§990. Reading Concurrent Resolution on Budget for Amendment.

Clause 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 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.

 330 Clause 10 of Rule XVIII requires amendments to concurrent resolutions 

on the budget be mathematically consistent. 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 aggregates and functional categories

but the amount of the deficit. Amendments transferring amounts of budget 

authority from one functional category to another—reducing one category by 

certain amounts and adding the same amount to another category—need 

make no changes in the aggregates to achieve mathematical consistency.
469 RULES OF THE HOUSE OF REPRESENTATIVES Rule XXI

§371 Clause 2(b)

RULE XXI

RESTRICTIONS ON CERTAIN BILLS

Clause 1. Reservation of Certain Points of Order

§ 1035. Reservation of Points of Order.

Clause 1. At the time a general appropriation bill is reported, all points of order against provisions therein shall be considered as reserved.

Clause 2. General Appropriation Bills and Amendments

§ 1036. Unauthorized Appropriations Reported in General Appropriation Bills or Amendments Thereto.

Clause 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.

§ 1037. Reappropriations Prohibited.

Clause 2(a)(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.

§ 1038. Legislation in Reported General Appropriation Bills; 

Exceptions.331

Clause 2(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.

 331 The “Holman Rule” allows exceptions to the rule against legislating on 

appropriation bills for retrenchments reducing spending. It permits committees of jurisdiction to recommend inclusion to the Appropriations Committee.
470 RULES OF THE HOUSE OF REPRESENTATIVES Rule XXI

Clause 2(f) §371

§ 1039. Legislation or Limitations in Amendments to General 

Appropriation Bills. 

Clause 2(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.

§ 1040. Motion to Rise and Report As Preferential To Amendments.

Clause 2(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.

§1041. Designated Emergencies Reported in Appropriation 

Bills.

Clause 2(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.

§1042. Offsetting Amendments En Bloc to Appropriation Bills.

Clause 2(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 
471 RULES OF THE HOUSE OF REPRESENTATIVES Rule XXI

§371 Clause 4

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.

Clause 3. Transportation Obligation Limitations332

§1064. Highway Funding.

Clause 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.333

Clause 4. Appropriations on Legislative Bills

§ 1065. Restriction of Power to Report Appropriations.

Clause 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 amendment thereto may be 

raised at any time during pendency of that measure for 

amendment.

 332 Before 112th Congress, this rule prohibited the consideration of legislation causing transportation obligation limitations to be below the levels specified in law for the highway or mass transit categories, then in law. This created funding guarantees for transportation activities within the highway and 

mass transit categories. Any legislation, including amendments, causing 

spending to be less than the authorized amount was subject to a point of order. An amendment that would reduce the limitation on obligations for federal-aid highway funds (i.e., reducing the amount of spending authority for 

highway projects) below the levels authorized in statute would have been 

subject to the point of order. After the beginning of the 112th Congress, 

though, a general appropriations measure, or an amendment to it, could reduce spending authority for highway and mass transit activities below the 

level in statute without being subject to the point of order, as long as those 

funds were not made available for a purpose not authorized by law. 333 Section 251 of BBEDCA included highway spending limits last set by 

the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (P.L. 109-59), expiring after fiscal year 2009. See §202, supra.
472 RULES OF THE HOUSE OF REPRESENTATIVES Rule XXI

Clause 5(a) §371

Clause 5. Tax and Tariff Measures and Amendments

§ 1066. Restriction on Bills and Amendments Carrying Taxes 

or Tariffs.

Clause 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.334

 334 A point of order under this paragraph against a provision in a bill is in 

order at any time during consideration of the bill for amendment in Committee of the Whole (Aug. 1, 1986, p. 18649). On October 4, 1989, the chair of the 

Committee of the Whole, before ruling on several points of order under this 

paragraph, enunciated several guidelines to distinguish taxes and tariffs on 

the one hand and user or regulatory fees and other forms of revenue on the 

other (p. 23260). On the opening day of the 102d Congress, Speaker Foley 

inserted in the Congressional Record the following statement of jurisdictional 

concepts underlying those same distinctions and indicated his intention to 

exercise his referral authority under rule X in a manner consistent with this 

paragraph (Jan. 3, 1991, p. 64 (reiterated at the beginning of each Congress, 

e.g., Jan. 4, 1995, p. 551; Jan. 3, 2001, p. 39)).

Clause 5(a) of rule XXI prohibits the reporting of a tax or tariff matter by 

any committee not having jurisdiction. Most of the questions of order arising 

under this clause since its adoption in 1983 have related to provisions that 

clearly affected the operation of the Internal Revenue Code or the customs 

laws. Questions have arisen related to provisions drafted as a user or regulatory fee levied on members of a class that avails itself of a governmental activity, typically to generate revenue in support of that activity. In order to 

provide guidance concerning the referral of bills, to assist committees in staying within their appropriate jurisdictions under rule X, to assist committees 

without jurisdiction over tax or tariff measures in complying with this clause, 

and to protect the constitutional prerogative of the House to originate revenue bills, the Speaker will make the following statement: Standing committees of the House (other than the Committees on Appropriations and Budget) 

have jurisdiction to consider user, regulatory and other fees, charges, and 

assessments levied on a class directly availing itself of, or directly subject to, 

a governmental service, program, or activity, but not on the general public, as 

measures to be utilized solely to support, subject to annual appropriations, 

the service, program, or activity for which such fees, charges, and assessments are established and collected and not to finance the costs of Government generally. The fee must be paid by a class benefiting from the service, 

program or activity, or being regulated by the applicable agency: There must 

be a reasonable connection between the payors and the agency or function 

receiving the fee. The fund that receives the amounts collected is not itself 

determinative of the existence of a fee or a tax. 
473 RULES OF THE HOUSE OF REPRESENTATIVES Rule XXI

§371 Clause 5(c)

Clause 5(a)(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.

Passage of Tax Rate Increases

§1067. Three-fifths vote to increase income tax rates.

Clause 5(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.335

Consideration of Retroactive Tax Rate Increases

§1068. Prohibition Against Retroactive Income Tax Rate Increase.

Clause 5(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.

 Ways and Means has jurisdiction over “revenue measures generally” under 

rule X. The Chair coordinates principles related to revenue with the Budget 

Committee and the Congressional Budget Office, especially in reconciliation, 

so budget scorekeeping does not determine, and reconciliation directives and 

implementation are consistent with, committee jurisdiction. 335 This provision defined ‘‘Federal income tax rate increase’’ as limited to a 

specific amendment to one of the named subsections. The modified version of 

this paragraph comprises three elements (an amendment to a pertinent section of the Internal Revenue Code of 1986, the imposition of a new rate of tax 

thereunder, and an increase in the amount of tax thereby imposed) and a 

measure that does not fulfill the first element does not have a Federal income 

tax rate increase This paragraph does not apply to concurrent resolutions. 
Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 474

Clause 8(a)-(c) §371

Clause 6. Designation of Public Works

§ 1068a. Restriction on Designation of Public Works.

Clause 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.

Clause 7. Reconciliation Directives

§ 1068b. Restriction on Reconciliation Directives.

Clause 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.336

Clause 8. Application of Budget Act Points of Order

§1068c. Budget Act Points of Order.

Clause 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 1974337 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.338

 336 This clause was added in the 110th Congress (sec. 402, H. Res. 6, Jan. 4, 

2007, p. 19 (adopted Jan. 5, 2007)), amended in the 111th Congress to reflect 

a change in the time periods in clause 10(a)(1) (sec. 2(j), H. Res. 5, 2009), and 

rewritten in the 112th Congress to focus on an increase in direct spending 

instead of a reduction in the surplus or an increase in the deficit. 337 Points of order which are included in title IV of the Congressional Budget Act of 1974, such as section 401 related to contract authority and new entitlement authority are not covered by this extension of the points of order to 

measures not reported by a committee. 338 Added in the 110th Congress (sec. 403, H. Res. 6, Jan. 4, 2007, p. 19).
475 RULES OF THE HOUSE OF REPRESENTATIVES Rule XXI

§371 Clause 9(a)

Clause 9. Earmarks

§1068d. Congressional Earmarks.

Clause 9(a). It shall not be in order to consider339—

(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;340

(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

 339 A point of order under this clause does not apply to an unreported 

measure if the chair of the committee of referral has caused to be printed in 

the Congressional Record a statement that the measure contains no congressional earmarks, limited tax benefits, or limited tariff benefits, or against a 

reported measure if the committee report contains this statement. A point of 

order hereunder is untimely after consideration has begun. 340 After a point of order under paragraph (a)(1) is sustained against consideration of a bill, a committee may file a supplemental report pursuant to 

clause 3(a)(2) of rule XIII to correct a technical error in the depiction of a bill 

number in the portion of a committee report regarding disclosure under this 

clause (July 30, 2010, p. l).
Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 476

Clause 9(b) – 9(c) §371

(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, 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 bill341 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.342

 341 “Continuing appropriations” are different from general or supplemental 

appropriations. Continuing appropriations in general “continue” budget authority already provided by extending the time period during which it is 

available for obligation. 342 Debate on the point of order is on the question of considering the measure that is the subject of the point of order (May 14, 2008). A point of order 

may be raised against a special order of business (May 14, 2008). A manager 

who controls time for debate against the point of order that is to be resolved 
477 RULES OF THE HOUSE OF REPRESENTATIVES Rule XXI

§371 Clause 9(d)-9(g)

(d) In order to be cognizable343 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.344

(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 provision345 that—

(A) provides a Federal tax deduction, credit, exclusion, or preference to 10 or fewer beneficiaries under the 

Internal Revenue Code of 1986, and 

(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 modifying the Harmonized Tariff Schedule of 

the United States346 in a manner that benefits 10 or fewer entities.

 by a question of consideration is entitled to close debate (Mar 21, 2010, p. l). 343 A cognizable point of order is one that meets the basic criteria of viability for being evaluated by the presiding officer. 344 Paragraph (d) requires that a point of order under this clause be predicated only on the absence of a complying statement, and does not contemplate a question of order relating to the content of such statement (May 10, 

2007, p. 12191). Whether the items included on the list of earmarks, limited 

tax benefits, or limited tariff benefits, in the statement is not the subject of 

debate but rather whether the statement has fulfilled the terms of inclusion 

pursuant to this clause is. 345 Under clause 4 of Rule XXIX, the Chairman of the Committee on the 

Budget provides “authoritative guidance” as to the budgetary impacts on revenue of a provision included in a measure. Such guidance may be sought in 

determining whether a provision is “revenue losing”. 346 The U.S. International Trade Commission publishes the Harmonized 
Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 478

Clause 10(a) §371

Clause 10. Cut-As-You-Go

§ 1068f. Cut-As-You-Go Point of Order.

Clause 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 2010.347

 Tariff Schedule of the United States (HTS) as directed by Congress in section 

1207 of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 

100-418; 19 U.S.C. 3007). The HTS contains both legal (enacted or proclaimed) and nonlegal (statistical or reference) provisions specifically designated as such in section 1204(a) of the Trade Act (102 Stat. 1148). All goods 

imported into the United States are subject to the provisions of the HTS, as 

well as to regulations of U.S. Customs and Border Protection and laws that it 

enforces. 347 Clause 10 was added in the 110th Congress (sec. 405, H. Res. 6, Jan. 4, 

2007, p. 19 (adopted Jan. 5, 2007)) and amended in the 111th Congress (sec. 

2(j), H. Res. 5, Jan. 6, 2009, p. 7; sec. 5, H. Res. 1500, July 1, 2010, p. l). In its 

original form it addressed increases in the deficit or surplus caused by changes in revenue and direct spending. It was changed to its present form in the 

112th Congress (sec. 2(d), H. Res. 5, Jan. 5, 2011, p. l). The Chair is authoritatively guided by estimates from the chair of the Committee on the Budget 

whether the net effect of an amendment increases mandatory spending as 

compared to the proposition to which offered (e.g., Jan. 26, 2011, p. l; Mar. 3, 

2011, p. l (sustained by tabling of appeal); Mar. 10, 2011, p. l; Mar. 11, 2011, 

p. l). A point of order against a bill under this clause is not timely pending the 

question of engrossment and third reading (Mar. 30, 2011, p. l).

§ 1068j. Former Pay-As-You-Go Point of Order. Under the former clause 

10, the Chair was authoritatively guided by estimates from the Committee on 

the Budget as to the net effect of a provision on the relevant surplus or deficit 

(Dec. 12, 2007, p. 34065). Spending provided by appropriation acts did not 

constitute ‘‘direct spending’’ (May 15, 2008, p. 9229). For a complete recitation of precedents under the former clause, see § 1068e of the House Rules 

and Manual for the 111th Congress (H. Doc. 110–162).
479 RULES OF THE HOUSE OF REPRESENTATIVES Rule XXI

§371 Clause 11

(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 2010,348 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.349

(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.350

Clause 11. Notice Requirements

§ 1068i. Availability of Introduced Measures. 

Clause 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.351

 348 See section 4(g) of the Statutory Pay-As-You-Go-Act of 2010. Under that 

designation, amounts are not counted for purposes of the scorecards that determine whether a sequestration is to be ordered. The amounts on the scorecard reflect on-budget spending and revenue effects. Similarly, the evaluation 

under this clause (Cutgo) is applied against on-budget direct spending, excluding the effects on Social Security and Postal operations. See §284 and 

§220, supra. 349 Budget effects of amendments are counted under Cutgo, except amendments between the Houses or text made in order as original text. 350 The original “Paygo” clause 10(c)((3) (111th Congress) read: “If a bill or 

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 a provision expressly designated as an emergency for purposes of 

pay-as-you-go principles.” 351 Amendments offered on the Floor may not be designated emergencies –

the budget effects are still counted under Cutgo. Amendments between the 

Houses, or self-executed text under a rule, may be so designated.
Rule XXI RULES OF THE HOUSE OF REPRESENTATIVES 480

Clause 4 §379

RULE XXII

HOUSE AND SENATE RELATIONS

Clause 11. Conference Reports on the Internal Revenue 

Code 

§ 1092. Tax Complexity Analysis.352

Clause 11. It shall not be in order to consider a conference 

report to accompany a bill or joint resolution that proposes to 

amend the Internal Revenue Code of 1986 unless—

(a) the joint explanatory statement of the managers 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 conference 

report.

RULE XXIX

GENERAL PROVISIONS

Clause 4. Authoritative Guidance From the Budget 

Committee Chairman on Budgetary Levels. 

§ 1105d. Authoritative Guidance of Budgetary Levels.

Clause 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.353

 352 The Internal Revenue Service Restructuring and Reform Act of 1998 

(sec. 4022, P.L. 105–206) added this provision to clause 11 of rule XXII. 353 Clause 4 of rule XXIX codified the accepted practice that the Chair of 

the Committee on the Budget provides authoritative guidance as to budgetary levels related to legislation considered on the floor.
481

SEPARATE ORDERS OF H. RES. 5

[114TH CONGRESS]
482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
§380 483

BUDGET-RELATED PROVISIONS

SEPARATE ORDERS OF H. RES. 5

[114TH CONGRESS]

______

January 6, 2015

Resolved, That the Rules of the House of Representatives of 

the One Hundred Thirteenth Congress, including applicable 

provisions of law or concurrent resolution that constituted 

rules of the House at the end of the One Hundred Thirteenth 

Congress, are adopted as the Rules of the House of Representatives of the One Hundred Fourteenth Congress, with amendments to the standing rules as provided in section 2, and with 

other orders as provided in sections 3, 4, and 5.

SEC. 2. CHANGES TO THE STANDING RULES.

* * * * * * *

SEC. 3. SEPARATE ORDERS. 

(a) INDEPENDENT PAYMENT ADVISORY BOARD.—Section 

1899A(d) of the Social Security Act shall not apply in the One 

Hundred Fourteenth Congress. 

(b) STAFF DEPOSITION AUTHORITY FOR CERTAIN COMMITTEES.—

[...]

(c) PROVIDING FOR TRANSPARENCY WITH RESPECT TO MEMORIALS SUBMITTED PURSUANT TO ARTICLE V OF THE CONSTITUTION OF THE UNITED STATES.— [...]

(d) SPENDING REDUCTION AMENDMENTS IN APPROPRIATIONS BILLS.—

(1) During the reading of a general 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 from 

an object or objects in the bill to a spending reduction ac-
Sec. 3 SEPARATE ORDERS OF H. RES. 5 (114TH CONGRESS) 484

§380

count. 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.

(2) Except as provided in paragraph (1), it shall not be 

in order to consider an amendment to a spending reduction 

account in the House or in the Committee of the Whole 

House on the state of the Union.

(3) It shall not be in order to consider an amendment to 

a general appropriation bill proposing a net increase in 

budget authority in the bill (unless considered en bloc with 

another amendment or amendments proposing an equal or 

greater decrease in such budget authority pursuant to 

clause 2(f) of rule XXI).

(4) A point of order under clause 2(b) of rule XXI shall 

not apply to a spending reduction account.

(5) A general appropriation bill may not be considered in 

the Committee of the Whole House on the state of the Union unless it includes a spending reduction account as the 

last section of the bill. An order to report a general appropriation bill to the House shall constitute authority for the 

chair of the Committee on Appropriations to add such a section to the bill or modify the figure contained therein.

(6) For purposes of this subsection, the term “spending 

reduction account” means an account in a general appropriation bill that bears that caption and contains only a recitation of the amount by which an applicable allocation of new 

budget authority under section 302(b) of the Congressional 

Budget Act of 1974 exceeds the amount of new budget authority proposed by the bill.

(e) BUDGET MATTERS.—

(1)(A) During the first session of the One Hundred Fourteenth Congress, pending the adoption of a concurrent resolution on the budget for fiscal year 2015.—

(i) the provisions of titles III, IV, and VI of House 

Concurrent Resolution 25, One Hundred Thirteenth 

Congress, as adopted by the House, shall have force and 

effect in the House as though Congress has adopted 

such concurrent resolution;

(ii) the allocations, aggregates, and other appropriate levels as contained in the statement of the chair of 

the Committee on the Budget of the House of Representatives in the Congressional Record of April 29, 

2014, as adjusted in the One Hundred Thirteenth Con-
485 SEPARATE ORDERS OF H.RES. 5 (114TH CONGRESS) Sec 3

§380

gress, shall be considered for all purposes in the House 

to be the allocations, aggregates, and other appropriate 

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

(iii) all references in titles IV and VI of House Concurrent Resolution 25, One Hundred Thirteenth Congress, to a fiscal year shall be considered for all purposes in the House to be references to the succeeding fiscal 

year; and

(iv) all references in titles IV and VI of House Concurrent Resolution 25, One Hundred Thirteenth Congress, to allocations, aggregates, or other appropriate 

levels in “this concurrent resolution” (or, in the case of 

section 408 of such concurrent resolution, “this resolution”) shall be considered for all purposes in the House 

to be references to the allocations, aggregates, or other 

appropriate levels contained in the statement of the 

chair of the Committee on the Budget of the House of 

Representatives printed in the Congressional Record of 

April 29, 2014, as adjusted in the One Hundred Thirteenth Congress.

(B) The chair of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels provided for in subparagraph (A)(ii) 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 2015 

through 2025.

(C) The chair of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels provided for in subparagraph (A)(ii) to take into account 

the most recent baseline published by the Congressional 

Budget Office.

(2)(A) During the One Hundred Fourteenth Congress, 

except as provided in subparagraph (C), a motion that the 

Committee of the Whole rise and report a bill to the House 

shall not be in order if the bill, as amended, exceeds an applicable allocation of new budget authority under section 

302(b) of the Congressional Budget Act of 1974, as estimated by the Committee on the Budget.

(B) If a point of order under subparagraph (A) is sustained, the Chair shall put the question: “shall the Committee of the Whole rise and report the bill to the House with 

such amendments as may have been adopted notwithstanding that the bill exceeds its allocation of new budget author-
Sec. 3 SEPARATE ORDERS OF H. RES. 5 (114TH CONGRESS) 486

§380

ity under section 302(b) of the Congressional Budget Act of 

1974?”. Such question shall be debatable for 10 minutes 

equally divided and controlled by a proponent of the question and an opponent but shall be decided without intervening motion.

(C) Subparagraph (A) shall not apply.—

(i) to a motion offered under clause 2(d) of rule XXI; 

or

(ii) after disposition of a question under subparagraph (B) on a given bill.

(D) If a question under subparagraph (B) is decided in 

the negative, no further amendment shall be in order except.—

(i) one proper amendment, which shall be debatable 

for 10 minutes equally divided and controlled by the 

proponent and an opponent, shall not be subject to 

amendment, and shall not be subject to a demand for 

division of the question in the House or in the Committee of the Whole; and

(ii) pro forma amendments, if offered by the chair or 

ranking minority member of the Committee on Appropriations or their designees, for the purpose of debate. 

(f) CONTINUING LITIGATION AUTHORITIES.— [...]

(g) DUPLICATION OF FEDERAL PROGRAMS.—

(1) The chair of a committee may request that the Government Accountability Office perform a duplication analysis of any bill or joint resolution referred to that committee. 

Any such analysis shall assess whether, and the extent to 

which, the bill or joint resolution creates a new Federal

program, office, or initiative that duplicates or overlaps 

with any existing Federal program, office, or initiative.

(2) The report of a committee on a bill or joint resolution 

that establishes or reauthorizes a program of the Federal 

Government shall include a statement, as though under 

clause 3(c) of rule XIII, indicating whether any such program is known to be duplicative of another such program. 

The statement shall at a minimum explain whether.—

(A) any such program was included in any report 

from the Government Accountability Office to Congress 

pursuant to section 21 of Public Law 111-139; or

(B) the most recent Catalog of Federal Domestic Assistance, published pursuant to the Federal Program Information Act (Public Law 95-220, as amended by Public 

Law 98-169), identified other programs related to the 

program established or reauthorized by the measure.
487 SEPARATE ORDERS OF H. RES. 5 (114TH CONGRESS) Sec. 3

§380

(h) ESTIMATES OF DIRECT SPENDING.354—

(1) It shall not be in order to consider any concurrent 

resolution on the budget, or amendment thereto or conference report thereon, unless it contains a separate heading 

entitled “Direct Spending”, which shall include a category 

for “Means-Tested Direct Spending” and a category for 

“Nonmeans-Tested Direct Spending” and sets forth.—

(A) the average rate of growth for each category in 

the total amount of outlays during the 10-year period 

preceding the budget year;

(B) estimates for each such category under current 

law for the period covered by the concurrent resolution; 

and

(C) information on proposed reforms in such categories.

(2) Before the consideration of a concurrent resolution 

on the budget by the Committee on the Budget for a fiscal 

year, the chair of the Committee on the Budget shall submit 

for printing in the Congressional Record a description of 

programs which shall be considered means-tested direct 

spending and nonmeans-tested direct spending for purposes 

of this subsection.

(i) DISCLOSURE OF DIRECTED RULEMAKINGS.—

(1) The report of a committee on a bill or joint resolution 

shall include a statement, as though under clause 3(c) of 

rule XIII, estimating the number of directed rule makings 

required by the measure.355

(2) For purposes of this subparagraph, the term “directed rule making” means a specific rule making within 

the meaning of section 551 of title 5,356 United States Code, 

 354 S. Con. Res. 11, the conference report on the concurrent resolution on 

the budget for fiscal year 2016 complied with this subsection by setting forth 

the required elements related to means-tested and non-means tested direct 

spending. It may be found in Title V of that concurrent resolution. 355 This requirement for the inclusion of a disclosure statement related to 

directed rule makings does not apply to concurrent resolutions so it is not 

required for concurrent resolutions on the budget. 356 The applicable language of 5 USC 551:

“(4) ‘rule’ means the whole or a part of an agency statement of general or 

particular applicability and future effect designed to implement, interpret, or 

prescribe law or policy or describing the organization, procedure, or practice 

requirements of an agency and includes the approval or prescription for the 

future of rates, wages, corporate or financial structures or reorganizations 

thereof, prices, facilities, appliances, services or allowances therefor or of valuations, costs, or accounting, or practices bearing on any of the foregoing;

“(5) ‘rule making’ means agency process for formulating, amending, or repealing a rule;”. 
Sec. 3 SEPARATE ORDERS OF H. RES. 5 (114TH CONGRESS) 488

§380

specifically directed to be completed by a provision in the 

measure, but does not include a grant of discretionary rule 

making authority.

* * * * * *

(q) SOCIAL SECURITY SOLVENCY357.—

(1) POINT OF ORDER.—During the One Hundred Fourteenth Congress, it shall not be in order to consider a bill or 

joint resolution, or an amendment thereto or conference report thereon, that reduces the actuarial balance by at least 

.01 percent of the present value of future taxable payroll of 

the Federal Old-Age and Survivors Insurance Trust Fund 

established under section 201(a) of the Social Security Act 

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.

(2) EXCEPTION.—Paragraph (1) shall not apply to a 

measure that would improve the actuarial balance of the 

combined balance in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance 

Trust Fund 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.

* * * * * *

 357 This point of order was also included, largely verbatim, in the Concurrent Resolution on the Budget for Fiscal Year 2016, S. Con. Res. 11 (114th

Congress). Though it was included in an adopted concurrent resolution on the 

budget for both the House and the Senate, it applies in the House only under 

that concurrent resolution. When there are inconsistencies between a concurrent resolution, which is a rulemaking document, and the House Rules, the 

former takes precedence. S. Con. Res. 11 is not included in this Compendium.

It was the first conference report adopted since 2010. It was not included 

though because its erratic drafting causes some confusion and a different 

direction from existing budget-related rules and laws. 
489

JURISDICTION OF THE COMMITTEE ON THE BUDGET OF THE 

HOUSE OF REPRESENTATIVES
490
§380 491

JURISDICTION OF THE HOUSE 

BUDGET COMMITTEE

_______

The Committee on the Budget of the House primarily and 

originally derives its jurisdiction from the Congressional Budget and Impoundment Control Act of 1974. Section 101 of Title I 

of this Act established House Budget Committee, and section 

102 established the Senate Budget Committee. This jurisdiction is protected by law under section 306 of the Budget Act, 

which states that “no bill, resolution, amendment, motion, or 

conference report dealing with any matter within the jurisdiction of the Budget Committee may be considered in the House 

unless it is a bill or resolution having been reported by that 

Committee or unless it is an amendment to a bill or resolution 

reported by the Committee.”

House Rule X, clause 1(d) states that the Budget Committee has jurisdiction over the concurrent resolution on the budget; other matters required to be referred to it pursuant to the 

Budget Act; establishment, extension, and enforcement of special controls over the federal budget; and the budget process 

generally.

Prior to the 104th Congress, the Committee on the Budget of 

the House did not have jurisdiction over legislation other than 

budget resolutions and reconciliation bills. The Committees on 

Rules and Government Oversight and Reform had the primary 

substantive jurisdiction over budget process. 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 a variety 

of aspects of the congressional budget and various statutory 

controls over the Federal budget. 

Under clause 1(d) of Rule X, the Committee on the Budget 

has jurisdiction over:

“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. Measures 

relating to the congressional budget process, generally.
JURISDICTION OF THE HOUSE BUDGET COMMITTEE 492

§380

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.” The addition to (d)(2) intended the 

Budget Committee had substantive jurisdiction over a statement providing for a balanced budget required under a proposed amendment to the U.S. Constitution. The House passed 

the amendment but it did not receive the necessary votes in the 

Senate.

The intent of paragraph (d)(3) was discussed in a memorandum of understanding between Representative John R.

Kasich, the chairman of the Committee on the Budget, and Mr.

Gerald B. H. 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 established the Budget Committee’s secondary jurisdiction over other elements of the congressional budget process. The Committee has primary jurisdiction over both budgetary levels and 

budgetary concepts and secondary jurisdiction over procedural 

aspects of the congressional budget.

The Committee on Rules does not have jurisdiction over 

matters other than those affecting procedures of Congress as 

far as budget is concerned. Therefore, though the two are interrelated, the Rules Committee does not have jurisdiction over 

laws such as those setting statutory discretionary spending 

limits or direct spending controls such as in the pay-as-you-go 

system. 
§380 493

FROM VOLUME 18 OF

DESCHLER-BROWN-JOHNSON-SULLIVAN 

PRECEDENTS

CH. 41 § 7

(Page 79-83)358

§ 7. ROLE OF COMMITTEES

The Committees on the Budget for both the House and the 

Senate were created by section 101359 of the Congressional 

Budget Act of 1974. 360 In the House prior to this time, the 

Committee on Government Operations had jurisdiction over 

“budget and accounting measures,” but no single committee 

had jurisdiction over the budget process generally.361

Membership on the Committee on the Budget was initially 

set at 23 members, but was increased to 25 in the 94th Congress. 362 Membership was increased again to 30 in the 97th

Congress,363 and to 31 in the 98th Congress.364 In the 99th Congress, the numerical limitation on membership was eliminated.365

Rule X clause 5(a)(2)366 lays out the composition and termlimit requirements for the Committee on the Budget. Originally,367 the House required that all members of the Committee on 

 358 Footnotes in this section in brackets are from Volume 18 of DeschlerBrown-Johnson-Sullivan Precedents; Ch. 41 § 7. References within these 

brackets are to the Volumes of Deschler’s Precedents. 359 The Committee on the Budget for the House was created by section 101 

and the Committee on the Budget for the Senate was created by section 102 

of the Congressional Budget Act of 1974. 360 [(Footnote #1 on page 79) Pub. L. No 93–344, title I. For an earlier overview of the history, composition, jurisdiction, and specific responsibilities of 

the Committee on the Budget, see Deschler’s Precedents Ch. 17 § 34, supra. 

However, some of that material has been overtaken by subsequent changes to 

the budget laws and House rules.] 361 [(Footnote #2 on page 79) House Rules and Manual § 691 (1973).] 362 [(Footnote #3 on page 79) 21 CON. REC. 20, 94th Cong. 1st Sess., Jan. 14, 

1975 (H. Res. 5).] 363 [(Footnote #4 on page 79) 127 CON. REC. 98–113, 97th Cong. 1st Sess., 

Jan. 5, 1981 (H. Res. 5).] 364 [(Footnote #5 on page 79) 129 CON. REC. 1791, 1792, 98th Cong. 1st Sess., 

Feb. 7, 1983 (unanimous-consent request).] 365 [(Footnote #6 on page 79) 131 CON. REC. 353, 99th Cong. 1st Sess., Jan. 

3, 1985 (H. Res. 7).] 366 [(Footnote #7 on page 79) House Rules and Manual § 758 (2011).] 367 [(Footnote #8 on page 79) Former Rule X clause 1(e), House Rules and 
JURISDICTION OF THE HOUSE BUDGET COMMITTEE 494

§380

the Budget be members of other standing committees, with five 

required to come from the Committee on Appropriations, five 

required to come from the Committee on Ways and Means, and 

two others chosen by their respective party leaderships. As 

noted above, membership of the committee has gradually increased over the years, but the requirements of other standing 

committee affiliation have not changed. The one exception is a 

change made at the beginning of the 108th Congress, which required that one member of the Committee on the Budget also 

be a member of the Committee on Rules.368

Membership on the Committee on the Budget is subject to 

term limits, both for the chairman and ranking minority member, as well as rank-and-file members. Originally, no Member 

could serve on the Committee on the Budget for more than two 

Congresses out of any five successive Congresses,369 but this 

restriction was changed to three Congresses (out of five) in the 

96th Congress.370 In the 104th Congress, the rule was changed to 

its present form, which prohibits a Member from serving on the 

committee for more than four Congresses in any period of six 

successive Congresses (with an exception allowing a Member to 

exceed such limitation by being elected to a second consecutive 

term as chairman or ranking minority member of such committee).371 However, these restrictions do not apply to the Members designated by their respective party leaderships.372 The 

Committee on the Budget is now subject to the same tenure 

limitations of its chair as other committees—a member may 

serve as chairman for no more than three successive Congresses—pursuant to Rule X clause 5(c)(2).373

The Congressional Budget Act, which created the House 

Committee on the Budget, also specified certain duties of that 

committee, which were subsequently incorporated into the 

standing rules of the House. Rule X clause 3(c),374 laying out 

the special oversight functions of various committees, requires 

the Committee on the Budget to study on a continuing basis 

 Manual § 674(a) (1975).] 368 [(Footnote #9 on page 79) 149 CON. REC. 7, 108th Cong. 1st Sess., Jan. 7, 

2003 (H. Res. 5).] 369 [(Footnote #10 on page 79) House Rules and Manual § 674(b) (1975). 370 [(Footnote #11 on page 80) 125 CON. REC. 8, 96th Cong. 1st Sess., Jan. 15, 

1979 (H. Res. 5).] 371 [(Footnote #12 on page 80) See 141 CON. REC. 464, 104th Cong. 1st Sess., 

Jan. 4, 1995 (H. Res. 6).] 372 [(Footnote #13 on page 79) Rule X clause 5(a)(2)(B), House Rules and 

Manual § 758 (2011).] 373 [(Footnote #14 on page 80) Id. at § 761 (2011).] 374 [(Footnote #15 on page 80) Id. at § 744 (2011).]
495 JURISDICTION OF THE HOUSE BUDGET COMMITTEE

§380

the effect of budget outlays on existing and proposed legislation 

and to report its findings to the House on a recurring basis. 

Rule X clause 4(b),375 requires the committee to: (1) review the 

conduct of the Congressional Budget Office; (2) hold hearings to 

develop the concurrent resolution on the budget; (3) make all 

reports required by the Congressional Budget Act; (4) study 

provisions of law that exclude certain Federal agencies or outlays from inclusion in the budget; (5) study proposals to improve the congressional budget process; and (6) evaluate studies of tax expenditures.

Pursuant to Rule X clause 4(f),376 all House committees are 

given certain responsibilities with respect to the concurrent 

resolution on the budget. As noted in Section 2,377 each standing committee must submit to the Committee on the Budget its 

views and estimates with respect to all matters set forth in the 

congressional budget resolution, as well as estimates of new 

budget authority and outlays authorized in legislation within 

the jurisdiction of each committee intended to become effective 

in that fiscal year. Such views and estimates must be submitted no later than six weeks after the submission of the President’s budget.378 The Committee on Ways and Means is further 

required to include views and estimates regarding the appropriate level of the public debt. The Committee on the Budget 

accepts these submissions from the other standing committees 

of the House and uses them in formulating the concurrent resolution on the budget. An additional requirement for the Committee on the Budget to consult with the legislative committees 

in preparing the concurrent resolution on the budget is found 

in section 301(h) of the Congressional Budget Act.379

The Congressional Budget Act requires the Committee on 

the Budget to provide estimates as to the budgetary effect of 

legislation in various contexts. Section 312(a) is the primary 

source for this authority, mandating that levels of new budget 

authority, outlays, direct spending, new entitlement authority 

and revenues are to be determined on the basis of estimates 

provided by the Committee on the Budget for purposes of titles 

 375 [(Footnote #16 on page 80) Id. at § 748 (2011).] 376 [(Footnote #17 on page 80) Id. at § 756 (2011).] 377 The reference to “Section 2” is to Deschler’s Volume 18, on page 11. 378 [(Footnote #18 on page 80) For an exchange of letters between a Member and the Parliamentarian regarding proper committee procedure in submitting views and estimates to the Committee on the Budget, see 137 CON.

REC. 7778, 7779, 102d Cong. 1st Sess., Apr. 10, 1991.] 379 [(Footnote #19 on page 81) 2 USC § 632(h).]
JURISDICTION OF THE HOUSE BUDGET COMMITTEE 496

§380

III and IV of the Budget Act.380 Pursuant to section 310(d)(4), 

budgetary levels for reconciliation enforcement are also to be 

provided by the Committee on the Budget.381 Finally, section 

308(b)(2) mandates that the Committee on the Budget provide 

Members of the House with periodic ‘status reports” as to the 

current state of congressional actions providing new budget authority and comparisons with levels set forth in the most recent 

concurrent resolution on the budget.382 The Committee on the 

Budget is required to use Congressional Budget Office estimates in formulating such reports.383

Pursuant to Rule XXIX clause 4,384 authoritative guidance 

from the Committee on the Budget regarding the budgetary 

impact of a legislative proposition may be provided by the 

chairman of that committee. This rule, adopted at the beginning of the 112th Congress, codified existing practice for obtaining timely guidance as to budgetary matters from the Committee on the Budget.

Additional duties required of the Committee on the Budget 

are found in section 301 of the Congressional Budget Act, 

which describes how the concurrent resolution on the budget is 

to be prepared.385 Section 301(e)(1)386 requires the Committee 

on the Budget to hold hearings and receive testimony from various entities in developing the budget. Section 301(e)(2) lays 

out the requirements for the report to accompany the concurrent resolution on the budget, while section 301(e)(3) describes 

the optional components of such report.387

 380 [(Footnote #20 on page 81) 2 USC § 643(a). A similar authority, applicable only to section 311 points of order, was initially found in former section 

311(b), prior to the reforms of Gramm-Rudman-Hollings in 1985. It was then 

moved to section 311(c) before being subsumed into current section 312(a) by 

the Budget Enforcement Act of 1997. Likewise, the Committee on the Budget 

was required under former section 302(g) to provide estimates of budgetary 

levels for purposes of section 302 enforcement, but this specific requirement 

was collapsed into the broader authority currently found in section 312(a) by 

the Budget Enforcement Act of 1997.] 381 [(Footnote #21 on page 81) 2 USC § 641(d)(4).] 382 [(Footnote #22 on page 81) 2 USC § 639(b)(2). For an example of such a 

status report, see 146 CON. REC. 12634, 12635, 106th Cong. 2d Sess., June 27, 

2000. Such status reports have been ‘‘revised’’ by supplemental submission, 

see, e.g., 152 CON. REC. 3522, 109th Cong. 2d Sess., Mar. 14, 2006.] 383 [(Footnote #23 on page 81) House Rules and Manual § 1127 (2011).] 384 [(Footnote #24 on page 81) House Rules and Manual § 1105d (2011).] 385 [(Footnote #25 on page 82) 2 USC § 632.] 386 [(Footnote #26 on page 82) Id. at (e)(1).] 387 [(Footnote #27 on page 82) Id. at (e)(2), (e)(3).]
497 JURISDICTION OF THE HOUSE BUDGET COMMITTEE

§380

As originally conceived, the jurisdiction of the Committee 

on the Budget was quite limited, encompassing only concurrent 

resolutions on the budget and other matters requiring referral 

to that committee under the Congressional Budget Act.388 Over 

time, that jurisdiction has been expanded to include additional 

matters. In the 99th Congress, the committee was given jurisdiction over Senate joint or concurrent resolutions constituting 

responses to Presidential sequestration orders.389 In the 104th

Congress, the committee was given jurisdiction over: (1) other 

measures setting forth budgetary levels for the United States 

Government; (2) the congressional budget process generally; 

and (3) special controls over the Federal budget (including the 

budgetary treatment of off-budget entities).390 In the 105th Congress, the committee’s jurisdiction over the congressional budget process was expanded to include the Federal budget process 

generally.391 With regard to the special treatment of off-budget 

entities and the executive branch budget process, jurisdiction 

over these matters was transferred from the Committee on 

Oversight and Government Reform (and its predecessor committees) to the Committee on the Budget.392 The Committee on 

Oversight and Government Reform has retained jurisdiction 

over “overall economy, efficiency, and management of government operations and activities,” and “government management 

and accounting measures generally,” but it no longer has the 

same role with respect to budgetary matters specifically.

As noted throughout this chapter, budget processes have 

been incorporated into the standing rules of the House and certain sections of the Congressional Budget Act constitute rulemaking in the House. The Committee on Rules has jurisdiction 

over the rules and the order of business in the House, pursuant 

to Rule X clause 1(o).393 Thus, there are many areas in which 

the Committee on the Budget’s jurisdiction over budget-related 

matters overlap with the Committee on Rules’ jurisdiction over 

 388 [(Footnote #28 on page 82) House Rules and Manual § 674(c) (1975).] 389 [(Footnote #29 on page 82) House Rules and Manual § 674(b) (1987). See 

Pub. L. No. 99–177, sec. 232(h). See § 26, infra.] 390 [(Footnote #30 on page 82) Id. at § 673b (1995).] 391 [(Footnote #31 on page 82) Id. at § 673b (1997).] 392 [(Footnote #32 on page 82) For a list of referrals reflecting the migration 

of these jurisdictional matters to the Committee on the Budget, see House 

Rules and Manual § 719 (2011).] 393 (Footnote #33 on page 83) House Rules and Manual § 733 (2011). See 

Deschler’s Precedents Ch. 17 §§ 52, 53, supra. The Committee on the Budget’s jurisdictional statement can be found in Rule X, clause 1(d), House Rules 

and Manual § 719 (2011).]
JURISDICTION OF THE HOUSE BUDGET COMMITTEE 498

§380

the rules of the House.394 As a result, budget resolutions have 

been sequentially referred to the Committee on Rules.395 Additionally, section 301(c) of the Congressional Budget Act specifies that any concurrent resolution on the budget that would 

have the effect of changing any rule of the House shall be referred to the Committee on Rules with instructions to report 

such resolution back to the House within five calendar days.396

The Congressional Budget Act also provides for a point of 

order against consideration of any bill, resolution, amendment, 

motion or conference report that contains subject matter within 

the jurisdiction of the Committee on the Budget, but which has 

not been reported (or discharged) from that committee.397

While many points of order under the Congressional Budget 

Act apply to measures only as reported from committee (leaving unreported measures uncovered), Rule XXI clause 8 of the 

standing rules of the House (first adopted in the 110th Congress),398 separately applies all points of order under title III of 

the Budget Act to unreported as well as reported measures.

Traditionally, the President’s budget submission is referred 

to the Committee on Appropriations, and not to the Committee 

on the Budget.399

 394 [(Footnote #34 on page 83) The chairman of the Committee on the 

Budget inserted into the Congressional Record a memorandum of understanding between this committee and the Committee on Rules to clarify each 

committee’s jurisdiction over the congressional budget process. See 141 CON.

REC. 617, 618, 104th Cong. 1st Sess., Jan. 4, 1995.] 395 [(Footnote #35 on page 83) See, e.g., 130 CON. REC. 7315, 98th Cong. 2d 

Sess., Apr. 2, 1984; and 129 CON. REC. 6321, 98th Cong. 1st Sess., Mar. 21, 

1983.] 396 [(Footnote #36 on page 83) 2 USC § 632(c). Former section 402(b) of the 

Congressional Budget Act, repealed by Gramm-Rudman-Hollings, provided 

specific authority to the Committee on Rules to recommend emergency waivers of former section 402(a). For more on former section 402(a), see § 14, infra.] 397 [(Footnote #37 on page 83) Section 306 of the Congressional Budget Act, 

2 USC § 637. For additional information on section 306 points of order, see § 

16, infra.] 398 [(Footnote #38 on page 83) House Rules and Manual § 1068c (2011).] 399 [(Footnote #39 on page 83) See, e.g., 149 CON. REC. 2301, 2302, 108th

Cong. 1st Sess., Feb. 4, 2003. For an example of the House dividing a presidential message and referring the portion on the budget to the Committee on 

Appropriations, see Deschler’s Precedents Ch. 17 § 27.4 and Deschler-BrownJohnson Precedents Ch. 35 § 3.6, supra. For more on presidential budget 

submissions, see § 3, supra.]
§380 499

DEBATE ON H. RES. 6

ADOPTING THE RULES OF THE HOUSE OF REPRESENTATIVES 

FOR THE ONE HUNDRED FOURTH CONGRESS

IN THE HOUSE OF REPRESENTATIVES

Wednesday, January 4, 1995 (Page H45)

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 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 ju-
JURISDICTION OF THE HOUSE BUDGET COMMITTEE 500

§380

risdiction 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.

RULES PACKAGE/MEMORANDUM

OF UNDERSTANDING

HON. JOHN R. KASICH

OF OHIO

IN THE HOUSE OF REPRESENTATIVES

Wednesday, January 4, 1995400

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 

 400 See 141 CONG. REC. 617, 618, 104th Cong. 1st Sess., Jan. 4, 1995. This 

may be found on page E36, CONG. REC.—Extensions of Remarks January 5, 

1995.
501 JURISDICTION OF THE HOUSE BUDGET COMMITTEE

§380

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.401

STATEMENT OF UNDERSTANDING BETWEEN THE COMMITTEE ON 

THE BUDGET AND THE COMMITTEE ON RULES OVER THE 

CONGRESSIONAL BUDGET PROCESS

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.

 401 Representative William F. Clinger, Chairman of the Government Reform and Oversight Committee, did not place a separate statement in the 

Congressional Record.
JURISDICTION OF THE HOUSE BUDGET COMMITTEE 502

§380

CHANGES IN JURISDICTION IN THE 105TH CONGRESS

January 7, 1997

TEXT FROM H. RES. 5 (105TH CONGRESS): 402

SEC. 5. BUDGET JURISDICTION CHANGES.

(a) In clause 1(d)(3) of rule X (relating to the Committee on 

the Budget), strike “congressional budget process” and insert in 

lieu thereof “budget process.”

(b) In clause 1(g)(4) of rule X (relating to the Committee on 

Government Reform and Oversight), strike “Budget and accounting measures, generally” and insert in lieu thereof “Government management and accounting measures, generally,”

DESCRIPTION OF CHANGE FROM ANALYSIS OF H. RES. 5:403

Section 5. Budget Jurisdiction Changes: The jurisdiction of 

the Budget Committee is changed by striking “congressional 

budget process” and inserting in lieu, “budget process.” The jurisdiction of the Government Reform and Oversight Committee 

is changed by striking “budget and accounting measures, generally,” and replacing it with “Government management and 

accounting measures, generally,”. The intent of this is to give 

the Budget Committee jurisdiction over the President’s budget 

process as well as the congressional budget process, and thereby to avoid duplication with the Government Reform and Oversight Committee in this area. This change will not alter Government Reform and Oversight’s existing legislative jurisdiction over such matters as government management and reorganization, the Office of Management and Budget’s management, regulatory, and other coordinating functions, or the General Accounting Office.

 402 CONG. REC.; 1st Session, 105th Congress, January 7, 1997; p. H8. 403 CONG. REC.; 1st Session, 105th Congress, January 7, 1997; p.H12.
503

THE UNITED STATES SENATE
504
505

RULES OF THE SENATE

S. CON. RES. 21 (110TH CONGRESS)
506
507

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.
Sec. 201 S. CON. RES. 21, 110TH CONGRESS 508

§400

(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.

(6) PRIOR SURPLUS.—If direct spending or revenue legislation increases the on-budget deficit or causes an onbudget 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-yougo 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 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 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, 

2017.404

(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.

 404 S. Con. Res. 11 (114th Congress) repealed subsection (d), making the 

Senate pay-as-you-go point of order permanent.
509 S. CON. RES. 21, 110TH CONGRESS Sec. 204

§400

* * * * * * *

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.
Sec. 204 S. CON. RES. 21, 110TH CONGRESS 510

§400

(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 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.
511 S. CON. RES. 21, 110TH CONGRESS Sec. 204

§400

(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 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.
Sec. 206 S. CON. RES. 21, 110TH CONGRESS 512

§400

(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. 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 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 

three-fifths 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).
513 S. CON. RES. 21, 110TH CONGRESS Sec. 207

§400

(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 Appropriations” 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.

* * * * * * *
Sec. 209 S. CON. RES. 21, 110TH CONGRESS 514

§400

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.
515 S. CON. RES. 21, 110TH CONGRESS Sec. 209

§400

(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 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 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. 
516
517

RULES OF THE SENATE

S. CON. RES. 70 (110TH CONGRESS)
518
519

S. CON. RES. 70, 110TH CONGRESS

* * * * * * *405

TITLE III—BUDGET ENFORCEMENT

SUBTITLE A—HOUSE ENFORCEMENT PROVISIONS

SEC. 301. PROGRAM INTEGRITY INITIATIVES AND OTHER ADJUSTMENTS.

* * * * * * *

SEC. 302. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

* * * * * * *

SUBTITLE B—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.

 405 The Senate adopted the Conference Report on S. Con. Res. 70 on June 4, 

2008. The House adopted this Conference Report the next day, on June 5, 

2008. In the process of coming to an agreement on the budget resolution, the 

conferees merged components of the House-passed concurrent resolution on the budget (H. Con. Res. 312) with the Senate-passed concurrent resolution 

(S. Con. Res. 70).
Sec. 314 S. CON. RES. 70, 110TH CONGRESS 520

§400

(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. 

(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.

* * * * * * *

SEC. 313. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

* * * * * * *

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).
521 S. CON. RES. 70, 110TH CONGRESS Sec. 314

§400

(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 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.
Sec. 314 S. CON. RES. 70, 110TH CONGRESS 522

§400

(f) FORM OF 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.
523

RULES OF THE SENATE

S. CON. RES. 13 (111TH CONGRESS)
524
525

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.

* * * * * * *

SEC. 402. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

* * * * * * *

SEC. 403. EMERGENCY LEGISLATION.

(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 short term deficits). Designated 

emergency provisions shall not count for the purpose of revis-
Sec. 403 S. CON. RES. 13, 111TH CONGRESS 526

§400

ing 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

(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 

three-fifths 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 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 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 
527 S. CON. RES. 13, 111TH CONGRESS Sec. 404

§400

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;

(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.
Sec. 405 S. CON. RES. 13, 111TH CONGRESS 528

§400

(b) 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.

(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.—

(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.
529 S. CON. RES. 13, 111TH CONGRESS Sec. 413

§400

PART II—OTHER PROVISIONS

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 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.
Sec. 415 S. CON. RES. 13, 111TH CONGRESS 530

§400

(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 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.
531

RULES OF THE SENATE

BUDGET CONTROL ACT OF 2011
532
533

SENATE PROVISIONS OF THE 

BUDGET CONTROL ACT OF 2011 

______

(PUBLIC LAW 112–25)

* * * * * * *

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;

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 

2011, 2012, 2012 through 2016, and 2012 through 2021 
Sec. 106 BUDGET CONTROL ACT (SENATE PROVISIONS) 534

§400

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
535 BUDGET CONTROL ACT (SENATE PROVISIONS) Sec. 106

§400

(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.—

(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.
536
537

RULES OF THE SENATE

BIPARTISAN BUDGET ACT OF 2013
538
539

SENATE PROVISIONS OF THE 

BIPARTISAN BUDGET ACT OF 2013

______

(PUBLIC LAW 113–67)

* * * * * * *

SUBTITLE B—ESTABLISHING 

A CONGRESSIONAL BUDGET

SEC. 111. FISCAL YEAR 2014 BUDGET RESOLUTION.

(a) FISCAL YEAR 2014.—For the purpose of enforcing the 

Congressional Budget Act of 1974 for fiscal year 2014, and enforcing, in the Senate, budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, 

and levels provided for in subsection (b) shall apply in the same 

manner as for a concurrent resolution on the budget for fiscal 

year 2014 with appropriate budgetary levels for fiscal year 

2014 and for fiscal years 2015 through 2023.

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—

The Chairmen of the Committee on the Budget of the House of 

Representatives and the Senate shall each submit a statement 

for publication in the Congressional Record as soon as practicable after the date of enactment of this Act that includes--

(1) for the Committee on Appropriations of that House, 

committee allocations for fiscal year 2014 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;

(2) for all committees of that House other than the 

Committee on Appropriations, committee allocations for--

(A) fiscal year 2014;

(B) fiscal years 2014 through 2018 in the Senate only; and

(C) fiscal years 2014 through 2023;

consistent with the May 2013 baseline of the Congressional Budget Office adjusted to account for the budgetary effects of this Act and legislation enacted prior to 

this Act but not included in the May 2013 baseline of 

the Congressional Budget Office, for the purpose of en-
Sec. 112 BIPARTISAN BUDGET ACT (SENATE PROVISIONS) 540

§400

forcing section 302 of the Congressional Budget Act of 

1974;

(3) aggregate spending levels for fiscal year 2014 in accordance with the allocations established under paragraphs (1) 

and (2), for the purpose of enforcing section 311 of the Congressional Budget Act of 1974;

(4) aggregate revenue levels for—

(A) fiscal year 2014;

(B) fiscal years 2014 through 2018 in the Senate only; 

and

(C) fiscal years 2014 through 2023;

consistent with the May 2013 baseline of the Congressional 

Budget Office adjusted to account for the budgetary effects 

of this Act and legislation enacted prior to this Act but not 

included in the May 2013 baseline of the Congressional 

Budget Office, for the purpose of enforcing section 311 of 

the Congressional Budget Act of 1974; and

(5) in the Senate only, levels of Social Security revenues 

and outlays for fiscal year 2014 and for the periods of fiscal 

years 2014 through 2018 and 2014 through 2023 consistent 

with the May 2013 baseline of the Congressional Budget Office adjusted to account for the budgetary effects of this Act 

and legislation enacted prior to this Act but not included in 

the May 2013 baseline of the Congressional Budget Office, 

for the purpose of enforcing sections 302 and 311 of the 

Congressional Budget Act of 1974.

(c) FURTHER ADJUSTMENTS.—After the date of enactment of 

this Act, the Chairman of the Committee on the Budget of the 

House of Representatives may reduce the aggregates, allocations, and other budgetary levels included in the statement of 

the Chairman of the Committee on the Budget of the House of 

Representatives referred to in subsection (b) to reflect the 

budgetary effects of any legislation enacted during the 113th 

Congress that reduces the deficit.

SEC. 112. LIMITATION ON ADVANCE APPROPRIATIONS IN THE 

SENATE.

(a) POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS IN 

THE 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, 

amendment between the Houses, or conference report 

that would provide an advance appropriation.

(B) DEFINITION.—In this subsection, the term `advance appropriation' means any new budget authority 
541 BIPARTISAN BUDGET ACT (SENATE PROVISIONS) Sec. 112

§400

provided in a bill or joint resolution making appropriations for fiscal year 2014 that first becomes available for 

any fiscal year after 2014 or any new budget authority 

provided in a bill or joint resolution making appropriations for fiscal year 2015 that first becomes available for 

any fiscal year after 2015.

(2) EXCEPTIONS.—Advance appropriations may be provided—

(A) for fiscal years 2015 and 2016 for programs, projects, activities, or accounts identified in a statement 

submitted to the Congressional Record by the Chairman 

of the Committee on the Budget of the Senate under the 

heading “Accounts Identified for Advance Appropriations” in an aggregate amount not to exceed 

$28,852,000,000 in new budget authority in each fiscal 

year;

(B) for the Corporation for Public Broadcasting; and

(C) for the Department of Veterans Affairs for the 

Medical Services, Medical Support and Compliance, and 

Medical Facilities accounts of the Veterans Health Administration.

(3) SUPERMAJORITY WAIVER AND APPEAL.—

(A) WAIVER.—In the Senate, paragraph (1) may be 

waived or suspended only by an affirmative vote of 

three-fifths 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 or amendment between the Houses 

shall be 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 
Sec. 114 BIPARTISAN BUDGET ACT (SENATE PROVISIONS) 542

§400

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) INAPPLICABILITY.—In the Senate, section 402 of S. 

Con. Res. 13 (111th Congress) shall no longer apply.

(b) EXPIRATION.—Subsection (a) shall expire if a concurrent 

resolution on the budget for fiscal year 2015 is agreed to by the 

Senate and House of Representatives pursuant to section 301 

of the Congressional Budget Act of 1974.

* * * * * * *

SEC. 114. ADDITIONAL SENATE BUDGET ENFORCEMENT.

(a) SENATE PAY-AS-YOU-GO SCORECARD.—

(1) IN GENERAL.— Effective on the date of enactment of 

this Act, for the purpose of enforcing section 201 of S. Con. 

Res. 21 (110th Congress), the Chairman of the Committee 

on the Budget of the Senate shall reduce any balances of direct spending and revenues for any fiscal year to zero.

(2) FISCAL YEAR 2015.—After April 15, 2014, but not 

later than May 15, 2014, for the purpose of enforcing section 201 of S. Con. Res. 21 (110th Congress), the Chairman 

of the Committee on the Budget of the Senate shall reduce 

any balances of direct spending and revenues for any fiscal 

year to zero.

(3) PUBLICATION.—Upon resetting the Senate paygo 

scorecard pursuant to paragraph (2), the Chairman of the 

Committee on the Budget of the Senate shall publish a notification of such action in the Congressional Record.

(b) FURTHER ADJUSTMENTS.—With respect to any allocations, aggregates, or levels set or adjustments made pursuant 

to this subtitle, sections 412 through 414 of S. Con. Res. 13 

(111th Congress) shall remain in effect.

(c) DEFICIT-NEUTRAL RESERVE FUND TO REPLACE SEQUESTRATION.—The Chairman of the Committee on the Budget of 

the Senate may revise the allocations of a committee or committees, aggregates, and other appropriate levels and limits set 

pursuant to this subtitle for one or more bills, joint resolutions, 

amendments, motions, or conference reports that amend section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) to repeal or revise the enforcement procedures established under that section, by the 

amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over 

the period of the total of fiscal years 2014 through 2023. For 
543 BIPARTISAN BUDGET ACT (SENATE PROVISIONS) Sec. 116

§400

purposes of determining deficit-neutrality under this subsection, the Chairman may include the estimated effects of any 

amendment or amendments to the discretionary spending limits in section 251(c) of the Balanced Budget and Emergency 

Deficit Control Act of 1985 (2 U.S.C. 901(c)).

(d) ADDITIONAL DEFICIT-NEUTRAL RESERVE FUNDS.—In the 

Senate only, sections 302, 303, 304, 305, 306, 307, 308, 309, 

310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 322, 323, 

324, 325, 326, 327, 328, 329, 330, 331, 332, 333, 334, 335, 338, 

339, 340, 341, 344, 348, 349, 350, 353, 354, 356, 361, 363, 364, 

365, 366, 367, 368, 369, 371, 376, 378, 379, and 383 of S. Con. 

Res. 8 (113th Congress), as passed the Senate, shall have force 

and effect.

(e) EXPIRATION.—Subsections (a)(2), (c), and (d) shall expire 

if a concurrent resolution on the budget for fiscal year 2015 is 

agreed to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget Act of 1974.

* * * * * * *

SEC. 116. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION IN THE SENATE.

(a) FISCAL YEAR 2015.—For the purpose of enforcing the 

Congressional Budget Act of 1974, after April 15, 2014, and enforcing budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, and levels provided for in subsection (b) shall apply in the Senate in the same 

manner as for a concurrent resolution on the budget for fiscal 

year 2015 with appropriate budgetary levels for fiscal years 

2014 and 2016 through 2024.

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—

After April 15, 2014, but not later than May 15, 2014, the 

Chairman of the Committee on the Budget of the Senate shall 

file—

(1) for the Committee on Appropriations, committee allocations for fiscal years 2014 and 2015 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;

(2) for all committees other than the Committee on Appropriations, committee allocations for fiscal years 2014, 

2015, 2015 through 2019, and 2015 through 2024 consistent 

with the most recent baseline of the Congressional Budget 

Office for the purpose of enforcing section 302 of the Congressional Budget Act of 1974;

(3) aggregate spending levels for fiscal years 2014 and 

2015 in accordance with the allocations established under 
Sec. 118 BIPARTISAN BUDGET ACT (SENATE PROVISIONS) 544

§400

paragraphs (1) and (2), for the purpose of enforcing section 

311 of the Congressional Budget Act of 1974;

(4) aggregate revenue levels for fiscal years 2014, 2015, 

2015 through 2019, and 2015 through 2024 consistent with 

the most recent baseline of the Congressional Budget Office 

for the purpose of enforcing section 311 of the Congressional Budget Act of 1974; and

(5) levels of Social Security revenues and outlays for fiscal years 2014, 2015, 2015 through 2019, and 2015 through 

2024 consistent with the most recent baseline of the Congressional Budget Office for the purpose of enforcing sections 302 and 311 of the Congressional Budget Act of 1974.

(c) ADDITIONAL MATTER.—The filing referred to in subsection (b) may also include, for fiscal year 2015, the reserve funds 

included in section 114(c) and (d) of this Act, updated by one 

fiscal year.

(d) SUPERSEDING PREVIOUS STATEMENT.—In the Senate, 

the filing referred to in subsection (b) shall supersede the 

statement referred to in section 111(b) of this Act.

(e) EXPIRATION.—This section shall expire if a concurrent 

resolution on the budget for fiscal year 2015 is agreed to by the 

Senate and House of Representatives pursuant to section 301 

of the Congressional Budget Act of 1974.

SEC. 117. EXCLUSION OF SAVINGS FROM PAYGO SCORECARDS.

(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—

Notwithstanding section 1(c) of this division, the budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory PayAs-You-Go Act of 2010.

(b) SENATE PAYGO SCORECARDS.—Notwithstanding section 

1(c) of this division, the budgetary effects of this Act shall not 

be entered on any PAYGO scorecard maintained for purposes 

of section 201 of S. Con. Res. 21 (110th Congress).

SEC. 118. EXERCISE OF RULEMAKING POWERS.

The provisions of this subtitle 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.
545

JURISDICTION OF THE 

COMMITTEE ON THE BUDGET

OF THE SENATE
546
547

JURISDICTION OF THE 

COMMITTEE ON THE BUDGET OF 

THE SENATE ______

The jurisdiction of the Committee on the Budget of the 

Senate is established under congressional rules, a longstanding unanimous consent agreement, and S. Res. 445 (108th

Congress).

S. RES. 445 (108TH CONGRESS)406

IN THE SENATE OF THE UNITED STATES

October 9, 2004

Considered, amended, and agreed to

SEC. 101. * * *

(a) * * *

(b) * * *

(c) * * *

(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 

 406 Sections 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 THE SENATE BUDGET COMMITTEE 548

§400

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 Director 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)407 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.

 407 From Note 12 of the Standing Rules of the Senate: “Pursuant to S. Res. 

445, 108–2, Oct. 9, 2004, the Committee on Budget’s jurisdiction was amended although the Standing Rules were not modified.”
549 JURISDICTION OF THE SENATE BUDGET COMMITTEE

§400

(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 referred to the 

Appropriations Committee, and Budget Committee, and pending implementations 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.
JURISDICTION OF THE SENATE BUDGET COMMITTEE 550

§400

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 authorization 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;
551 JURISDICTION OF THE SENATE BUDGET COMMITTEE

§400

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.
552
553

PART IV

GENERAL MATTER
554
555

CONTENTS

LIST OF CONCURRENT RESOLUTIONS ON THE BUDGET

LIST OF RECONCILIATION ACTS

LIST OF ALTERNATING RESPONSIBILITIES OF THE HOUSE AND SENATE 

BUDGET COMMITTEES

S. CON. RES. 11, THE CONCURRENT RESOLUTION ON THE BUDGET FOR 

FISCAL YEAR 2016 (CONFERENCE REPORT)

CONSTITUTION OF THE UNITED STATES

BUDGET AND ACCOUNTING ACT OF 1921

EMPLOYMENT ACT OF 1946

SCOREKEEPING GUIDELINES

APPROPRIATED ENTITLEMENTS AND MANDATORIES
556
557

LIST OF CONCURRENT RESOLUTIONS

ON THE BUDGET
558
559

LIST OF CONCURRENT

RESOLUTIONS ON THE BUDGET __________

BUDGET

RESOLUTION

YEAR

HOUSE

RESOLUTION

NUMBER

SENATE

RESOLUTION

NUMBER

CONFERENCE

REPORT

NUMBER

FY1976 (1st)

94th Congress

H. Con. Res. 218 S. Con. Res. 32 H. Con. Res. 218

FY1976 (2nd)

94th Congress

H. Con. Res. 466 S. Con. Res. 76 H. Con. Res. 466

FY1977 (1st)

94th Congress

H. Con. Res. 611 S. Con. Res. 109 S. Con. Res. 109

FY1977 (2nd)

94th Congress, 

H. Con. Res. 728 S. Con. Res. 139 S. Con. Res. 139

FY1977 (3rd)

95th Congress

H. Con. Res. 110 S. Con. Res. 10 S. Con. Res. 10

FY1978 (1st)

95th, Congress

H. Con. Res. 214 S. Con. Res 19 S. Con. Res 19

FY1978 (2nd)

95th Congress

H. Con. Res. 341 S. Con. Res 43 H. Con. Res. 341

FY1979 (1st)

95th Congress

H. Con. Res. 559 S. Con. Res. 80 S. Con. Res. 80

FY1979 (2nd) 

95th Congress

H. Con. Res. 683 S. Con. Res. 104 H. Con. Res. 683
LIST OF CONCURRENT RESOLUTIONS ON THE BUDGET 560

 408 H. Con. Res. 186 failed of passage in the House on September 19, 1979. 

The measure revised the budget for fiscal year 1980 (H. Rept. 96-435). The it 

failed to pass, the House adopted the Senate’s version of the budget resolution, hence a conference report was not required. 409 S. Con. Res. 36 revised the fiscal year 1980 concurrent resolution on the 

budget (S. Rept. 96-311), as a conference report was filed (S. Rept. 399 and H. 

Rept. 96-582) on passed the Senate with an amendment on November 7, 

1979. After the removal of the reconciliation instructions, the concurrent resolution was adopted as the 2nd Budget Resolution (H. Con. Res. 53). See 

statement by Mr. Robert Giaimo (CT) on page 33906 of the Congressional 

Record for November 28, 1978. 410 H. Con. Res. 230, reaffirming the 1st budget resolution for fiscal year 

1982 (H. Con. Res. 115), was reported by the House Budget Committee on 

December 8, 1981 (H. Rept. 97-369) and a Rule provided for its consideration. 

Though the Rule passed, the House laid the concurrent resolution on the table by Unanimous Consent. 411 H. Con. Res. 345 failed of passage in the House on May 27, 1982. 412 After the second budget resolution for fiscal year 1982, no further separate second budget resolutions were adopted until the Balanced Budget and 

Emergency Deficit Control Act of 1985 repealed the requirement. 

BUDGET

RESOLUTION 

YEAR

HOUSE

RESOLUTION

NUMBER

SENATE

RESOLUTION

NUMBER

CONFERENCE

REPORT

NUMBER

FY1980 (1st)

96th Congress

H. Con. Res. 107 S. Con. Res. 22 H. Con. Res. 107

FY1980 (2nd)

96th Congress

H. Con. Res. 186408 S. Con. Res.

36409

S. Con. Res. 53

S. Con. Res. 53

FY1981 (1st)

96th Congress H. Con. Res. 307 S. Con. Res. 86 H. Con. Res. 307

FY1981 (2nd)

96th Congress H. Con. Res. 448 S. Con. Res. 119 H. Con. Res. 448

FY1982 (1st)

97th Congress H. Con. Res. 115 S. Con. Res. 19 H. Con. Res. 115

FY1982 (2nd)

97th Congress H. Con. Res. 230410 S. Con. Res. 50 S. Con. Res. 50

FY1983 (1st)

97th Congress

H. Con. Res. 345411

H. Con. Res. 352 S. Con. Res. 92 S. Con. Res. 92

FY1983 (2nd)412 None None None
561 LIST OF CONCURRENT RESOLUTIONS ON THE BUDGET

 413 H. Con. Res. 152 was deemed to be in force on July 24, 1985 before the 

adoption of the conference report on S. Con. Res. 32 on August 1, 1985. 414 Beginning in fiscal year 1987, under amendments made by the Balanced 

Budget and Emergency Deficit Control Act of 1985, second concurrent resolutions on the budget were no longer required under the Congressional Budget 

Act of 1974. Despite being required under that Act, second concurrent resolutions on the budget were not adopted for fiscal years 1983 through 1986. 

98th Congress

BUDGET

RESOLUTION

YEAR

HOUSE

RESOLUTION

NUMBER

SENATE

RESOLUTION

NUMBER

CONFERENCE

REPORT

NUMBER

FY1984 (1st)

98th Congress H. Con. Res. 91 S. Con. Res. 27 H. Con. Res. 91

FY1984 (2nd)

98th Congress None None None

FY1985 (1st)

98th Congress H. Con. Res. 280 S. Con. Res. 106 H. Con. Res. 280

FY1985 (2nd)

98th Congress None None None

FY1986 (1st)

99th Congress H. Con. Res. 152413 S. Con. Res. 32 S. Con. Res. 32

FY1986 (2nd)

99th Congress None None None

FY1987414

99th Congress H. Con. Res. 337 S. Con. Res. 120 S. Con. Res. 120

FY1988

100th Congress H. Con. Res. 93 S. Con. Res. 49 H. Con. Res. 93

FY1989

100th Congress H. Con. Res. 268 S. Con. Res. 113 H. Con. Res. 268

FY1990

101st Congress H. Con. Res. 106 S. Con. Res. 30 H. Con. Res. 106

FY1991

101st Congress H. Con. Res. 310 S. Con. Res. 110 H. Con. Res. 310

FY1992 H. Con. Res. 121 S. Con. Res. 29 H. Con. Res. 121
LIST OF CONCURRENT RESOLUTIONS ON THE BUDGET 562

 415 Fiscal Year 1999 was the first year a conference report on a concurrent 

resolution on the budget – the Congressional budget – was not adopted for a 

fiscal year since passage of the Congressional Budget Act of 1974. In the 

House, for fiscal year 1999, two resolutions “deeming” the budget in place 

were adopted. 416 Since the Senate adopted the House-passed budget resolution instead of 

adopting its own, no conference was held and H. Con. Res. 83 served as the 

Concurrent Resolution the Budget for Fiscal Year 2002 for Congress.

101st Congress

BUDGET

RESOLUTION

YEAR

HOUSE

RESOLUTION

NUMBER

SENATE

RESOLUTION

NUMBER

CONFERENCE

REPORT

NUMBER

FY1993

102nd Congress H. Con. Res. 287 S. Con. Res. 106 H. Con. Res. 287

FY1994

103rd Congress H. Con. Res. 64 S. Con. Res. 18 H. Con. Res. 64

FY1995

103rd Congress H. Con. Res. 218 S. Con. Res. 63 H. Con. Res. 218

FY1996

104th Congress H. Con. Res. 67 S. Con. Res. 13 H. Con. Res. 67

FY1997

104th Congress H. Con. Res. 178 S. Con. Res. 57 H. Con. Res. 178

FY1998

105th Congress H. Con. Res. 84 S. Con. Res. 27 H. Con. Res. 84

FY1999

105th Congress H. Con. Res. 284 S. Con. Res. 86 None 415

FY2000

106th Congress H. Con. Res. 68 S. Con. Res. 20 H. Con. Res. 68

FY2001

106th Congress H. Con. Res. 290 S. Con. Res. 101 H. Con. Res. 290

FY2002

107th Congress H. Con. Res. 83 None H. Con. Res. 83416
563 LIST OF CONCURRENT RESOLUTIONS ON THE BUDGET

 417 Congress did not adopt a fiscal 2003 budget resolution. On May 22, 2002

the House adopted H. Res. 428, and H. Res. 5 on Jan. 7, 2003: Each deemed 

H. Con. Res. 353 (107th Congress) the House-passed fiscal year 2003 budget 

resolution to have force and effect. The Senate did not adopt such a deeming 

resolution for that fiscal year. 418 Congress did not adopt a concurrent resolution on the budget for fiscal 

year 2005. Though a conference was appointed and reported a budget resolution, both Chambers did not agreed to it. The House adopted the conference 

report to S. Con. Res. 95 (H. Rept. 108-498), but the Senate did not. The 

House agreed to H. Res. 649 (108th Congress) on May 19, 2004, and H. Res. 5 

(109th Congress) on January 4, 2005, deeming the conference report in force. 

Section 14007 of the Defense Appropriations Act, 2005 (P.L. 108-287), enacted on Aug. 5, 2004, set fiscal year 2005 spending allocations for the Senate 

Appropriations Committee. 419 The conference report on the Concurrent Resolution on the Budget for 

Fiscal Year 2010 was notable in that it provided for reconciliation instructions under which the Health Care and Education Reconciliation Act of 2010 

was enacted. This law is one of the two founding statutes of the Affordable 

Care Act.

BUDGET

RESOLUTION

YEAR

HOUSE

RESOLUTION

NUMBER

SENATE

RESOLUTION

NUMBER

CONFERENCE

REPORT

NUMBER

FY2003

107th Congress H. Con. Res. 353 S. Con. Res. 100 None 417

FY2004

108th Congress H. Con. Res. 95 S. Con. Res. 23 H. Con. Res. 95

FY2005

108th Congress. H. Con. Res. 393 S. Con. Res. 95 None 418

FY2006

109th Congress H. Con. Res. 95 S. Con. Res. 18 H. Con. Res. 95

FY2007

109th Congress H. Con. Res. 376 S. Con. Res. 83 None

FY2008

110th Congress H. Con. Res. 99 S. Con. Res. 21 S. Con. Res. 21

FY2009

110th Congress H. Con. Res. 312 S. Con. Res. 70 S. Con. Res. 70

FY2010

111th Congress H. Con. Res. 85 S. Con. Res. 13 S. Con. Res. 13419
LIST OF CONCURRENT RESOLUTIONS ON THE BUDGET 564

 420 Congress did not adopt a budget resolution for FY2011. The House 

deemed a budget resolution (H. Res. 1493) in force on July 1, 2010. At the 

beginning of the 112th Congress, the House H. Res. 5 (Section 3(b)) that provided for the enforcement of budget levels submitted for printing in the Congressional Record by the chair of the House Budget Committee. The Senate 

did not deem a fiscal year 2011 budget resolution in force. 421 A conference was held on S. Con. Res. 8. Though no conference report 

was filed, the Bipartisan Budget Act of 2013 was based on its deliberations. 

That law included a deeming resolution for fiscal years 2014 and 2015 in the 

House. Despite having a budget resolution already deemed in force, the 

House still made the effort to establish a concurrent resolution on the budget 

for fiscal year 2015 through regular procedures. Hence the House adopted H. 

Con. Res. 96 by a vote of 219 ayes to 205 noes, the Concurrent Resolution on 

the Budget for Fiscal Year 2015. Even though it was so adopted, it was not 

deemed in force. Instead the fiscal year 2015 levels provided for in the BBA of 

2013 were used. The levels in the more recent House-passed H. Con. Res. 96 

varied from the BBA 2013. House Leadership reversed its decision to update 

budget levels and policies and instead reverted to the BBA 2013 levels, finding it more politically advantageous. 

BUDGET

RESOLUTION

YEAR

HOUSE

RESOLUTION

NUMBER

SENATE

RESOLUTION

NUMBER

CONFERENCE

REPORT

NUMBER

FY2011

111th Congress None S. Con. Res. 60 None 420

FY2012

112th Congress H. Con. Res. 34 None None

FY2013

112th Congress H. Con. Res. 112 None None

FY2014

113th Congress H. Con. Res. 25 S. Con. Res. 8421 None

FY2015

113th Congress H. Con. Res. 96 None None

FY2016

114th Congress H. Con. Res. 27 S. Con. Res. 11 S. Con. Res. 11
565

LIST OF RECONCILIATION ACTS
566

 
567

LIST OF

RECONCILIATION BILLS ______

Revenue Adjustment Act (H.R.5559); December 18, 1975 (vetoed).422

Omnibus Reconciliation Act of 1980 (P.L. 96-499) H. Con. Res. 

307; December 5, 1980.

Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35) H. Con. 

Res. 115; August 3, 1981.

Tax Equity and Fiscal Responsibility Act of 1982 (P.L. 97-248)

S. Con. Res. 92.

Omnibus Budget Reconciliation Act of 1982 (P.L. 97-253) S. 

Con. Res. 92; September 8, 1982.

Omnibus Budget Reconciliation Act of 1983 (P.L. 98-270) H. 

Con. Res. 91; April 18, 1984.

Consolidated Omnibus Budget Reconciliation Act of 1985 (P.L. 

99-272) S. Con. Res. 32; April 7, 1986.

Omnibus Budget Reconciliation Act of 1986 (P.L. 99-509) S. 

Con. Res. 120; October 21, 1986.

Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203) H. 

Con. Res. 92; December 22, 1987.

Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239) H. 

Con. Res. 106; December 19, 1989.

 422 Many dispute the status of the Revenue Adjustment Act as a reconciliation measure. From 142 CONG. REC. 11941, 104th Cong. 2d Sess., May 21, 

1996, page Ernest Hollings.“[The Revenue Adjustment Act (H.R. 5559)] was 

not reconciliation. I know Senator Long could use language loosely from time 

to time. But that was not a reconciliation bill. We did not start reconciliation 

until December 1980.”
LIST OF RECONCILIATION ACTS 568

Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508) H. 

Con. Res. 310; November 05, 1990.

Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66) H. 

Con. Res. 64; August 10, 1993.

Balanced Budget Act of 1995 (H.R. 2491) H. Con. Res. 67; December 6, 1995 (vetoed).

Personal Responsibility and Work Opportunity Reconciliation 

Act of 1996 (P.L. 104-193) H. Con. Res. 178; 08-22-96.

Balanced Budget Act of 1997 (P.L. 105-33) H. Con. Res. 84; August 5, 1997.

Taxpayer Relief Act of 1997 (P.L. 105-34) H. Con. Res. 84; August 5, 1997.

Taxpayer Refund and Relief Act of 1999 (H.R. 2488) H. Con. 

Res. 68; 09-23-99 (vetoed).

Marriage Tax Relief Reconciliation Act of 2000 (H.R. 4810) H. 

Con. Res. 290; August 5, 2000; (vetoed).

Economic Growth and Tax Relief Reconciliation Act of 2001

(P.L. 107-16) H. Con. Res. 83; June 7, 2001.

Jobs and Growth Tax Relief Reconciliation Act of 2003 (P.L. 

108-27) H. Con. Res. 95; May 28, 2003.

Deficit Reduction Act of 2005 (P.L. 109-171) H. Con. Res. 95; 

February 8, 2006.

Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 

109-222) H. Con. Res. 95; May 17, 2006.

College Cost Reduction and Access Act of 2007 (P.L. 110-84) S. 

Con. Res. 21; September 27, 2007.

Health Care and Education Reconciliation Act of 2010 (P.L. 111- 152) S. Con. Res. 13; March 30, 2010.
569

LIST OF ALTERNATING RESPONSIBILITIES

OF THE HOUSE AND SENATE BUDGET COMMITTEES
570

LIST OF ALTERNATING RESPONSIBILITIES OF THE

HOUSE AND SENATE BUDGET COMMITTEES

- Hosting of the Conference Reports on the Concurrent 

Resolution on the Budget

- Hosting of the Conference Reports on Reconciliation 

Measures

- Recommending the Appointment of the Director of the 

Congressional Budget Office
571

HOSTING OF CONFERENCE

REPORTS ON THE CONCURRENT

RESOLUTION ON THE BUDGET

______

Concurrent resolutions, under section 301 of the Congressional Budget Act of 1947, are required to be adopted annually. 

A conference agreement is not necessarily required since a resolution could be adopted through amending a concurrent resolution between the two Chambers. Even so, since the enactment of 

the Budget Act, each time a budget resolution has been adopted 

by both Houses of Congress, it has been done through a conference agreement. 

Over time, the House and Senate have established the precedent of alternating “hosting” the conference on the budget. This 

responsibility has several aspects associated with it. The 

Chairman of the Committee on the Budget hosting the conference acts as the Chairman of the Conference Committee as well. 

The staff of the hosting committee also has the responsibility of 

drafting the official resolution text of the conference report, both 

the resolution text and the joint explanatory statement of managers. Even so, the work is done through collegial agreement. 

It has also been settled that those years in which a budget 

resolution has not been agreed to do not count for purposes of 

determining the hosting of the conferences. A fiscal year 1999 

budget resolution was not agreed upon, so that year did not 

count toward the alternating of responsibilities: Because the 

Senate Chairman of the Budget Committee, Sen. Pete Domenici, 

chaired the conference for the fiscal year 1998 budget resolution, the House chairman, Rep. John R. Kasich, hosted the fiscal

year 2000 budget conference.

Though conference meetings were held on S. Con. Res. 8, the 

Senate-passed concurrent resolution on the budget for fiscal 

year 2014, no conference report was agreed to and none adopted 

by either the House or the Senate. Despite this, the conference 

meeting was considered to have been the House Budget Committee’s turn in the alternating of hosting responsibilities. The 

conference also set the process in motion that produced the Bipartisan Act of 2013 (Public Law 113-67, H.J. Res. 59, December 

26, 2013). Included here are the alternating Chairs since the 

104th Congress. 
HOSTING BUDGET RESOLUTION CONFERENCES 572

CONGRESSIONAL

SESSION

RESOLUTION

CONFERENCE

CHAMBER OF

CONGRESS

HOSTING

CHAIRMAN

104TH CONGRESS

1st FY1996 (1995) H. Con. Res. 67 Senate Domenici

2nd FY1997 (1996) H. Con. Res. 178 House Kasich

105TH CONGRESS 

1st FY1998 (1997) H. Con. Res. 84 Senate Domenici

2nd FY1999 (1998) No conference None None

106TH CONGRESS

1st FY2000 (1999) H. Con. Res. 68 House Kasich

2nd FY2001 (2000) H. Con. Res. 290 Senate Domenici

107TH CONGRESS

1st FY2002 (2001) H. Con. Res. 83 House Nussle

2nd FY2003 (2002) No conference None None

108TH CONGRESS

1st FY2004 (2003) H. Con. Res. 95 House Nickles

2nd FY2005 (2004) S. Con. Res. 95423 None None

109TH CONGRESS

1st Session (2005) H. Con. Res. 95 House Nussle

2nd Session (2006) No conference None None

110TH CONGRESS

1st Session (2007) S. Con. Res. 21 Senate Conrad

2nd Session (2008) S. Con. Res. 70 House Spratt

 423 On March 30, 2004, the Speaker appointed conferees for the consideration of S. Con. Res. 95 and the House amendment thereto (text of H. Con. 

Res. 393): Nussle, Portman, and Spratt. On March 31, 2004, the Senate disagreed to House amendment, appointed conferees. Nickles, Domenici, Grassley, Gregg, Conrad, Hollings, Sarbanes; and a conference was held. The conference report was not adopted by the Senate.
573 HOSTING BUDGET RESOLUTION CONFERENCES

CONGRESSIONAL

SESSION

RESOLUTION

CONFERENCE

CHAMBER OF

CONGRESS

HOSTING

CHAIRMAN

111TH CONGRESS

1st Session (2009) S. Con. Res. 13 Senate Conrad

2nd Session (2010) No conference None None

112TH CONGRESS

1st FY2012 (2011) No conference None None

2nd FY2013 (2012) No conference None None

113TH CONGRESS424

1st FY2014 (2013) S. Con. Res. 8 House Ryan

2nd FY2015 (2014) No conference None None

114TH CONGRESS425

1st FY2016 (2015) S. Con. Res. 11. Senate Enzi

2nd FY2017 (2016) To be determined. House TBD

 424 S. Con. Res. 8 was the Senate-passed concurrent resolution on the budget. The Senate agreed to a conference with the House on October 16, 2013, on 

the House-passed concurrent resolution on the budget, H. Con. Res. 25. 

Though several conference meetings were held, which Congressman Paul D. 

Ryan chaired, no conference report was agreed to. Legislation was enacted 

pursuant to the agreement that derived from this conference (it was not a 

reconciliation bill), H.J. Res. 59 that became Public Law 113-67, as the Bipartisan Budget Act of 2013. 425 For the concurrent resolution on the budget fiscal year 2016, it is expected that the Senate Committee on the Budget and its Chairman, Sen. 

Mike Enzi, will host and chair the conference. 
574 DIRECTORS OF THE CONGRESSIONAL BUDGET OFFICE

HOSTING OF BUDGET COMMITTEE

CONFERENCE REPORTS ON

RECONCILIATION MEASURES

______

BUDGET

RESOLUTION

RECONCILIATION

BILL

ENACTED

CONGRESS

CONGRESS

CHAMBER

CHAIR

HOSTING

H. Con. Res. 68 H.R. 2491426

104th

Congress

1995

Senate Domenici

H. Con. Res. 178 H.R.3734427

104th

Congress

1996

House Kasich

H. Con. Res. 84 H.R. 2014428

H.R. 2015429

105th

Congress

1997

Senate Domenici

H. Con. Res. 95 S. 1932430

109th

Congress

2005

House Nussle

S. Con. Res. 13 H.R.4872431

111th

Congress

2010

Senate Conrad

 426 President William Clinton vetoed H.R. 2491, Balanced Budget Act of 

1995 on December 6, 1995. 427 Personal Responsibility and Work Opportunity Reconciliation Act of 

1996. 428 Balanced Budget Act of 1997. 429 Taxpayer Relief Act of 1997. 430 Deficit Reduction Act of 2005. 431 Health Care and Education Reconciliation Act of 2010.
575

RECOMMENDING DIRECTOR OF THE

CONGRESSIONAL BUDGET OFFICE

______

The Chairmen of the Budget Committees, as a matter of 

practice, decorum, and tradition, have recommended individuals 

for the position of Director of the Congressional Budget Office. 

The official announcement is made by the Speaker of the House 

and the President Pro-Tem of the Senate, but reflects the recommendation made by the Chairman. This recommendation alternates between the Houses. 

This table shows the recent recommendations of those 

Chairmen, and which Chamber was responsible for making 

them. The table has been thoroughly researched by the Counsels of the House Committee on the Budget with citations footnoted. 

CBO

DIRECTOR

COMMITTEE

RECOMMEND

COMMITTEE

CHAIR

TERM 

BEGAN

TERM 

ENDED

June 

O’Neill432

House 

Budget 

Committee

John

Richard

Kasich

February 22, 

1995

January 29, 

1999

Daniel L. 

Crippen433

Senate 

Budget

Committee

Pietro Vichi 

"Pete"

Domenici

February 4, 

1999

January 3, 

2003,

Douglas 

HoltzEakin434

House 

Budget 

Committee

James 

Allen "Jim" 

Nussle435

February 5, 

2003436

December 29, 

2005

 432 See Eric Piain, (September 4, 1995). “Honeymoon over for Kasich and 

handpicked budget maven”. The Washington Post. p. A23. “When House 

Budget Committee Chairman John R. Kasich (R-Ohio) picked O'Neill to head 

the CBO last February, he described the New York economics professor as 

‘fabulous" and "highly qualified.’” 433 Bloomberg BNA – Daily Report: “Domenici Recommends Dan Crippen As 

New Congressional Budget Office Director”. “Senate Budget Committee 

Chairman Pete Domenici (R-N.M.) Jan. 13 formally recommended Dan Crippen—a veteran Washington consultant, political aide, and doctorate in public 

finance—as the next director of the Congressional Budget Office.” 434 CQ Monitor News—Budget; Jan. 9, 2003. “White House Economist Selected To Replace Crippen at CBO” – By Andrew Taylor, CQ Staff Writer. 

“White House economist Douglas J. Holtz-Eakin was named the new director 

of the Congressional Budget Office (CBO) on Thursday, the very day he interviewed for the position. House Budget Committee Chairman Jim Nussle, RIowa, announced the selection after leading a months-long search to fill the 

difficult but important job.” 435 Bloomberg BNA—Daily Report, January 10, 2003. “Bush Economist 
576 DIRECTORS OF THE CONGRESSIONAL BUDGET OFFICE

CBO

DIRECTOR

COMMITTEE

RECOMMEND

COMMITTEE

CHAIR

TERM

BEGAN

TERM

ENDED

Peter

Richard 

Orszag437

Senate 

Budget 

Committee

Gaylord 

Kent 

Conrad

January 18, 

2007

November 25, 

2008

Douglas

William

Elmendorf438

House 

Budget 

Committee

John 

Spratt

January 22, 

2009 

January 26, 

2011

Douglas

William

Elmendorf

Senate 

Budget

Committee

Gaylord 

Kent

Conrad

January 26, 

2011

March 31, 

2015

Keith

Hall439

House 

Budget 

Committee

Thomas

Price

April 1, 

2015 N/A

 Holtz-Eakin Nominated By Nussle to Become New CBO Director”. “House 

Budget Committee Chairman Jim Nussle (R-Iowa) said Jan. 9 he is nominating Douglas Holtz-Eakin, the chief economist at the Bush administration's 

Council of Economic Advisers, to be the new director of the Congressional 

Budget Office and that Holtz-Eakin has accepted the job.” 436 Appointment of Douglas Holtz-Eakin as Director of the Congressional 

Budget Office: Congressional Record—House; February 5, 2003, page H313: 

“Appointment As Director of Congressional Budget Office”: J. Dennis Hastert, 

Speaker of the House; Ted Stevens, President pro tempore of the Senate. 437 “From Senate Budget Committee press release of December 12, 2006: 

“Incoming Senate Budget Committee Chairman Kent Conrad (D-ND) will recommend the appointment of Peter R. Orszag as the new director of the Congressional Budget Office (CBO). “I am enthusiastically recommending Dr. Orszag to be the next CBO Director,’ Conrad said.” 438 CQ Today Online News—Budget; Nov. 25, 2008; “Democrats to Name 

new CBO Director” – By David Clarke, CQ Staff: “Traditionally, the chairmen 

alternate in picking a new director. Senate Budget Chairman Kent Conrad, DN.D., took the lead in choosing Orszag, so it is the turn of House Budget 

Chairman John M. Spratt Jr., D-S.C.” 439 Members of the House interviewed Keith Hall before he was chosen to 

become Director of the Congressional Budget Office. Though the Speaker of 

the House, Rep. John Boehner, and the President Pro Tempore of the Senate, 

Orin Hatch, announced him in March of 2015, the statement placed in the 

Congressional Record for that date indicated he would take the position of 

Director on April 1. The Chairman of the House Budget Committee made the 

recommendation to the Joint Leadership of Congress, pursuant to Section 201 

of the Congressional Budget Act of 1974. See §107, supra. 
577

THE CONSTITUTION OF THE UNITED STATES
578
579

THE CONSTITUTION OF THE

UNITED STATES 

PREAMBLE

We the people of the United States, in order to form a more 

perfect union, establish justice, insure domestic tranquility, 

provide for the common defense, promote the general welfare, 

and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United 

States of America.

ARTICLE I, SECTION 5, SECOND CLAUSE

Each House may determine the Rules of its Proceedings440

 440 Rulemaking Power: The power of a House to make its own rules is not 

impaired by previously enacted law. In adopting its rules, the House may incorporate by reference provisions of law constituting the Rules of the House at 

the end of the preceding Congress. It also may incorporate provisions of concurrent resolutions intended to remain applicable.

Ordinary rights and functions of the House under the Constitution are exercised in accordance with the rules, and under later decisions questions of constitutional privilege should also be considered in accordance with the rules. 

That House has recognized a law passed by an existing Congress with the concurrence of the House. In exercising its constitutional power to change its 

rules the House may confine itself within limitations.

Concurrent resolutions on the budget, as well as budget-related statutes, including rulemaking such as expedited consideration of legislation, often make 

reference to this power. For example, this text is from the Medicare Prescription Drug, Improvement, and Modernization Act of 2003: 

“Section 803.—Procedures in the House of Representatives.

“(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.”

“SECTION 804.—PROCEDURES IN THE SENATE.

“(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
UNITED STATES CONSTITUTION 580

ARTICLE I, SECTION 7, FIRST CLAUSE441

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.442

ARTICLE I, SECTION 8, FIRST CLAUSE 443

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;

 “(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.”

441 Revenue 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 Housepassed bill, to all bills for collecting revenue—revenue decreasing as well as 

revenue increasing—rather than simply to just those bills that increase revenue. 442 Appropriations Act: Article I 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 

returned to the Senate without House consideration (this is a procedure commonly known a “blue slipping” legislation).

443 Kinds 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 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.
581 UNITED STATES CONSTITUTION

ARTICLE I, SECTION 8, SECOND CLAUSE444

To borrow Money on the credit of the United States;

ARTICLE I, SECTION 9, SEVENTH CLAUSE.445

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.

 444 Purposes 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 the guiding lines in construction of the clause were initially laid down in the context of curbing state 

power rather than 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. 445 Appropriations: This clause is a limitation upon the power of the Executive Department and does not restrict Congress in appropriating moneys in 

the Treasury. 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.” 
UNITED STATES CONSTITUTION 582

AMENDMENT XVI446

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.447

 446 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 Company, 157 U.S. 429 (1895), affirmed on rehearing, 

158 U.S. 601 (1895), 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. 447 Ratification: Passed by Congress July 2, 1909. Ratified February 3, 1913, 

Amendment XVI modified Article I, section 9, of the Constitution. 
583

BUDGET AND ACCOUNTING ACT OF 1921
584

OFFICE OF MANAGEMENT AND BUDGET 

A-11 CIRCULAR

Why is the Budget and Accounting Act of 1921 important? 

Before enactment of this law in 1921, there was no annual cen- tralized budgeting in the Executive Branch. Federal Government 

agencies usually sent budget requests independently to congression- al committees with no coordination of the various requests in formu- lating the Federal Government's budget. The Budget and Accounting 

Act required the President to coordinate the budget requests for all 

Government agencies and to send a comprehensive budget to the 

Congress. It created the Bureau of the Budget, now the Office of 

Management and Budget (OMB), to help the President implement 

these requirements. It also required the President to include certain 

information in the budget. The Congress has amended the requirements many times and has codified them as Chapter 11, Title 31, 

U.S. Code. These are some of the requirements: 

“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....” The provision goes on to list about thirty 

items, such as expenditures and receipts for the past year 

through the fourth year following the budget year, information 

on debt, financial information, and information on employment 

levels.

“Under regulations prescribed by the President, each agency 

shall provide information required by the President in carrying 

out this chapter. The President has access to, and may inspect, 

records of an agency to obtain information.”

“Estimated expenditures and proposed appropriations for the 

legislative branch and the judicial branch...shall be submitted to 

the President before October 16 of each year and included in the 

budget by the President without change.”

Circular No. A–11

Preparation, Submission, and Execution of the Budget

Executive Office of the President 

Office of Management and Budget

June 2015
585

BUDGET AND ACCOUNTING

ACT OF 1921 ______

[PUBLIC LAW 67–13; 42 STAT. 20; JUNE 10, 1921, S. 1084]

An Act

To provide a national budget system and an independent 

audit of Government accounts, and for other purposes.

Be it enacted by the Senate and House of Representatives of 

the States of America in Congress assembled,

TITLE I—DEFINITIONS

SECTION 1. This Act may be cited as the “Budget and Accounting Act, 1921.”

SEC. 2. When used in this Act—

The terms “department and establishment” and “department 

or establishment” mean any executive department, independent 

commission, board, bureau, office, agency, or other establishment of the Government, including the municipal government of 

the District of Columbia, but do not include the Legislative 

Branch of the Government or the Supreme Court of the United 

States;

The term “the Budget” means the Budget required by section 

201 to be transmitted to Congress;

The term “Bureau” means the Bureau of the Budget;

The term “Director “means the Director of the Bureau of the 

Budget; and 

The term “Assistant Director” means the Assistant Director 

of the Bureau of the Budget.

TITLE II—THE BUDGET

SEC. 201. The President shall transmit to Congress on the 

first day of each regular session, the Budget, which shall set 

forth in summary and in detail:

(a) Estimates of the expenditures and appropriations 

necessary in his judgment for the support of the Government 

for the ensuing fiscal year; except that the estimates for such 

year for the Legislative Branch of the Government and the 

Supreme Court of the United States shall be transmitted to 

the President on or before October 15th of each year, and 

shall be included by him in the Budget without revision; (b) His estimates of the receipts of the Government during the ensuing fiscal year, under (1) laws existing at the 

time the Budget is transmitted and also (2) under the revenue proposals, if any, contained in the Budget;
Sec. 203 BUDGET AND ACCOUNTING ACT OF 1921 586

(c) The expenditures and receipts of the Government during the last completed fiscal year; (d) Estimates of the expenditures and receipts of the 

Government during the fiscal year in progress;

(e) The amount of annual, permanent, or other appropriations, rent year for expenditure including balances of appropriations for prior fiscal years, available for expenditure 

during the fiscal year in progress, as of November 1 of such 

year;

(f) Balanced statements of (1) the condition of the Treasury at the end of the last completed fiscal year, (2) the estimated condition of the Treasury at the end of the fiscal year 

in progress, and (3) the estimated condition of the Treasury 

at the end of the ensuing fiscal year if the financial proposals 

contained in the Budget are adopted;

(g) All essential facts regarding the bonded and other indebtedness of the Government; and

(h) Such other financial statements and data as in his 

opinion are necessary or desirable m order to make known in 

all practicable detail the financial condition of the Government.

SEC. 202. (a) If the estimated receipts for the ensuing fiscal 

year contained in the Budget on the basis of laws existing at the 

time the Budget is transmitted, plus the estimated amounts m 

the Treasury at the close of the fiscal year in progress, available 

for expenditure in the ensuing fiscal year, are less than the estimated expenditures for the ensuing fiscal year contained in 

the Budget, the President in the Budget shall make recommendations to Congress for new taxes, loans, or other appropriate 

action to meet the estimated deficiency.

(b) If the aggregate of such estimated receipts and such estimated amounts in the Treasury is greater than such estimated 

expenditures for the ensuing fiscal year, he shall make such 

recommendations as in his opinion the public interests require.

SEC. 203. (a) The President from time to time may transmit 

to Congress supplemental or deficiency estimates for such appropriations or expenditures as in his judgment (1) are necessary on account of laws enacted after the transmission of the 

Budget, or (2) are otherwise in the public interest. He shall accompany such estimates with a statement of the reasons therefor, including the reasons for their omission from the Budget. (b) Whenever such supplemental or deficiency estimates 

reach an aggregate which, if they had been contained in the 

Budget, would have required the President to make a recommendation under subdivision (a) of section 202, he shall thereupon make such recommendation.

SEC. 204. (a) Except as otherwise provided in this Act, the 

contents, order, and arrangement of the estimates of appropriations and the statements of expenditures and estimated expend-
587 BUDGET AND ACCOUNTING ACT OF 1921 Sec. 207

itures contained in the Budget or transmitted under section 203, 

and the notes and other data submitted therewith, shall conform to the requirements of existing law. (b) Estimates for lump-sum appropriations contained in the 

Budget or transmitted under section 203 shall be accompanied 

by statements showing, in such detail and form as may be necessary to inform Congress, the manner of expenditure of such 

appropriations and of the corresponding appropriations for the 

fiscal year in progress and the just completed fiscal year. Such 

statements shall be in lieu of statements of like character now 

required by law.

SEC. 205. The President, in addition to the Budget, shall 

transmit to Congress on the first Monday in December, 1921, for 

the service of the fiscal year ending June 30, 1923, only, an alternative budget, which shall be prepared in such form and 

amounts and according to such system of classification and 

itemization as is, in his opinion, most appropriate, with such 

explanatory notes and tables as may be necessary to show 

where the various items embraced in the Budget are contained 

in such alternative budget.

SEC. 206. No estimate or request for an appropriation and no 

request for in an item of any such estimate or request, and no 

recommendation as to how the revenue needs of the Government should be met shall be submitted to Congress or any committee thereof by any officer or employee of any department or 

establishment, unless at the request of either House of Congress. 

SEC. 207. There is hereby created in the Treasury Department a Bureau to be known as the Bureau of the Budget. There 

shall be in the Bureau a Director and an Assistant Director, 

who shall be appointed by the President and receive salaries of 

$10,000 and $7,500 a year, respectively. The Assistant Director 

shall perform duties as the Director may designate, and during 

the absence or incapacity of the Director or during a vacancy m 

the office of Director he shall act as Director. The Bureau, under 

such rules and regulations as the President may prescribe, shall 

prepare for him the Budget, the alternative Budget, and any 

supplemental or deficiency estimates, and to this end shall have 

authority to assemble, correlate, revise, reduce, or increase the 

estimates of the several departments or establishments.

SEC. 208. (a) The Director, under such rules and regulations 

as the President may prescribe, shall appoint and fix the compensation of attorneys and other employees and make expenditures for rent in the District of Columbia, printing, binding, telegrams, telephone service, law books, books of reference, periodicals, stationery, furniture, office equipment, other supplies, and 

necessary expenses of the office, within the appropriations made 

therefor.
Sec. 212 BUDGET AND ACCOUNTING ACT OF 1921 588

(b) No person appointed by the Director shall be paid a salary at a rate in excess of $6,000 a year, and not more than four 

persons so appointed shall be paid a salary at a rate in excess of 

$5,000 a year.

(c) All employees in the Bureau whose compensation is at a 

rate of $5,000 a year or less shall be appointed in accordance 

with the civil-service laws and regulations. (d) The provisions of law prohibiting the transfer of employees of executive departments and independent establishments 

until after service of three years shall not apply during the fiscal 

years ending June 30, 1921, and June 30, 1922, to the transfer 

of employees to the Bureau.

(e) The Bureau shall not be construed to be a bureau or office 

created since January 1, 1916, so as to deprive employees therein of the additional compensation allowed civilian employees 

under the provisions of section 6 of the Legislative, Executive, 

and Judicial Appropriation Act for the fiscal /ears ending June 

30, 1921, and June 30, 1922, if otherwise entitle thereto.

SEC. 209. The Bureau, when directed by the President, shall 

make n detailed study of the departments and establishments 

for some the purpose of enabling the President to determine 

what changes (with a view of securing greater economy and efficiency in the conduct of the public service) should be made in (1) 

the existing organization, activities, and methods of business of 

such departments or establishments, (2) the appropriations 

therefor, (3) the assignment of particular activities to particular 

services, or (4) the regrouping of services. The results of such 

study shall be embodied in a report or reports to the President, 

who may transmit to Congress such report or reports or any 

part thereof with his recommendations on the matters covered 

thereby.

SEC. 210. The Bureau shall prepare for the President a codification of all of all laws or parts of laws relating to the preparation and transmission to Congress of statements of receipts and 

expenditures of the Government and of estimates of appropriations. The President shall transmit the same to Congress on or 

before the first Monday in December, 1921, with a recommendation as to the changes which, in his opinion, should be made in 

such laws or parts of laws.

SEC. 211. The powers and duties relating to the compiling of 

estimates now conferred and imposed upon the Division of 

Bookkeeping and Warrants of the office of the Secretary of the 

Treasury are transferred to the Bureau.

SEC. 212 The Bureau shall, at the request of any committee 

of either House of Congress having jurisdiction over revenue or 

appropriations, furnish the committee such aid and information 

as it may request.
589 BUDGET AND ACCOUNTING ACT OF 1921 Sec. 301

SEC. 213. Under such regulations as the President may prescribe, (1) every department and establishment shall furnish to 

the Bureau such information as the Bureau may from time to 

time require, and (2) the Director and the Assistant Director, or 

any employee of the Bureau when duly authorized, shall, for the 

purpose of securing such information, have access to, and the 

right to examine, any books, documents, papers, or records of 

any such department or establishment.

SEC. 214. (a) The head of each department and establishment shall designate an official thereof as budget officer therefor who each year under his direction and on or before a date 

fixed by him, shall prepare the departmental estimates.

(b) Such budget officer shall also prepare, under the direction of the head of the department or establishment, such supplemental and deficiency estimates as may be required for its 

work.

SEC. 215. The head of each department and establishment 

shall revise the departmental estimates and submit them to the 

Bureau on or before September 15 of each year. In case of his 

failure to do so, the President shall cause to be prepared such 

estimates and data as are necessary to enable him to include in 

the Budget estimates and statements in respect to the work of 

such department or establishment.

SEC. 216. The departmental estimates and any supplemental 

deficiency estimates submitted to the Bureau by the head of any 

department or establishment shall be prepared and submitted 

in such form, manner, and detail as the President may prescribe.

SEC. 217. For expenses of the establishment and maintenance of the Bureau there is appropriated, out of any money in 

the Treasury not otherwise appropriated, the sum of $225,000, 

to continue available during the fiscal year ending June 30, 

1922.

TITLE III—GENERAL ACCOUNTING OFFICE

SEC. 301. There is created an establishment of the Government to be known as the General Accounting Office, which shall 

be independent of the executive departments and under the control and direction of the Comptroller General of the United 

States. The offices of the Comptroller of the Treasury and Assistant Comptroller of the Treasury are abolished, to take effect 

July 1, 1921. All other officers and employees of the office of the 

Comptroller of the Treasury shall become officers and employees of the General Accounting Office at their counting grades 

and salaries on July 1, 1921, and all books, records, documents, 

papers, furniture, office equipment and other property of the 

office of the Comptroller of the Treasury shall become the prop-
Sec. 304 BUDGET AND ACCOUNTING ACT OF 1921 590

erty of the General Accounting Office. The Comptroller General 

is authorized to adopt a seal for the General Accounting Office.

SEC. 302. There shall be in the General Accounting Office a 

Comptroller Genera1 of the United States and an Assistant 

Comptroller and Assistant to be General of the United States, 

who shall be appointed by the President with the advice and 

consent of the Senate, and shall receive salaries of $10,000 and 

$7,500 a year, respectively. The Assistant Comptroller General 

shall perform such duties as may be assigned to him by the 

Comptroller General, and during the absence or incapacity o the 

Comptroller General, or during a vacancy in that office, shall act 

as Comptroller General.

SEC. 303. Except as hereinafter provided in this section, the 

Comptroller General and the Assistant Comptroller General 

shall hold office for fifteen years. The Comptroller General shall 

not be eligible for reappointment. The Comptroller General or 

the Assistant Comptroller General may be removed at any time 

by joint resolution of Congress after notice and hearing, when, 

in the judgment of Congress, the Comptroller General or Assistant Comptroller General has become permanently incapacitated or has been inefficient, or guilty of neglect of duty, or of malfeasance in office, or of any felony or conduct involving moral

turpitude, and for no other cause and in no other manner except 

by impeachment. Any Comptroller General or Assistant Comptroller General removed in the manner herein provided shall be 

ineligible for reappointment to that office. When a Comptroller 

General or Assistant Comptroller General attains the age of 

seventy years, he shall be retired from his office.

SEC. 304. All powers and duties now conferred or imposed by 

law upon the Comptroller of the Treasury or the six auditors of 

the Treasury Department, and the duties of the Division of 

Bookkeeping and the Secretary of the Treasury relating to keeping the personal ledger accounts of disbursing and collecting officers, shall, so far as not inconsistent with this Act, be vested in 

and imposed upon the General Accounting Office and be exercised without direction from any other officer. The balances certified by the Comptroller General shall be final and conclusive 

upon the executive branch of the Government. The revision by 

the Comptroller General of settlements made by the six auditors 

shall be discontinued, except as to settlements made before July 

1,1921.

The administrative examination of the accounts and vouchers of the Postal Service now imposed by law upon the Auditor 

for the Post Office Department shall be performed on and after 

July 1, 1921, by the Comptroller, to a bureau in the Post Office 

Department to be known as the Bureau of Accounts, which is 

hereby established for that purpose. The Bureau of Accounts 

shall be under the direction of a Comptroller, who shall be ap-
591 BUDGET AND ACCOUNTING ACT OF 1921 Sec. 308

pointed by the President with the advice and consent of the 

Senate, and shall receive a salary of $5,000 a year. The Comptroller shall perform the administrative duties now performed 

by the Auditor for the Post Office Department and such other 

duties in relation thereto as the Postmaster General may direct. 

The appropriation of $5,000 for the salary of the Auditor for the 

Post Office Department for the fiscal year 1922 is transferred 

and made available for the salary of the Comptroller, Bureau of 

Accounts, Post Office Department. The officers and employees of 

the Office of the Auditor for the Post Office Department engaged 

in the administrative examination of accounts shall become officers and employees of the Bureau of Accounts at their grades 

and salaries on July 1, 1921. The appropriations for salaries and 

for contingent and miscellaneous expenses and tabulating 

equipment for such office for the fiscal year 1922, and all books, 

records, documents, papers, furniture, office equipment, and 

other property shall be apportioned between, transferred to, and 

made available for the Bureau of Accounts and the General Accounting Office, respectively, on the basis of duties transferred. 

SEC. 305. Section 236 of the Revised Statutes is amended to 

read as follows: 

“SEC. 236. All claims and demands whatever by the Government of the United States or against it, and all accounts 

whatever in which the Government of the United States is concerned, either as debtor or creditor, shall be settled and adjusted 

in the General Accounting Office.” 

SEC. 306. All laws relating generally to the administration of 

the departments and establishments, so far as applicable, govern the General Accounting Office. Copies of any books, records, 

papers, or documents, and transcripts from the books and proceedings of the General Accounting Office, when certified by the 

Comptroller General or the Assistant Comptroller General under its seal, shall be admitted as evidence with the same effect 

as the copies and transcripts referred to in sections 882 and 836 

of the Revised Statutes.

SEC. 307. The Comptroller General may provide for the 

payment of accounts or claims adjusted and settled in the General Accounting burs1ng officers Office, through disbursing officers of the several departments and establishments, instead of 

by warrant.

SEC. 308. The duties now appertaining to the Division of 

Public Moneys of the Office of the Secretary of the Treasury, so 

far as they relate to the covering of revenues and repayments 

into the Treasury the issue of duplicate checks and warrants 

and the certification of outstanding liabilities for payment, shall 

be performed by the Division of Bookkeeping and Warrants of 

the Office of the Secretary of the Treasury. 
Sec. 312 BUDGET AND ACCOUNTING ACT OF 1921 592

SEC. 309. The Comptroller General shall prescribe the forms, 

systems, and procedure for administrative appropriation and 

fund accounting in the several departments and establishments, 

and for the administrative examination of fiscal officers' accounts and claims against the United States.

SEC. 310. The offices of the six auditors shall be abolished, to 

take effect July 1, 1921. All other officers and employees of 

these offices, except as otherwise provided herein shall become 

officers and employees of the General Accounting Office at their 

grades and salaries on July 1, 1921. All books, records, documents, papers, furniture, office equipment, and other property 

of these offices, and of the Division of Bookkeeping and Warrants, so far as they relate to the work of such division transferred by section 304, shall become the property of the General 

Accounting Office. The General Accounting Office shall occupy 

temporarily the rooms now occupied by the office of the Comptroller of the Treasury and the six auditors.

SEC. 311. (a) The Comptroller General shall appoint, remove, 

and fix the compensation of such attorneys and other employees 

in the General Accounting Office us may from time to tune be 

provided for by law. (b) All such appointments, except to positions carrying a salary at a rate of more than $5,000 a year, shall be made in accordance with the civil-service laws and regulations.

(c) No person appointed by the Comptroller General shall be 

paid a salary at a rate of more than $6,000 a year, and not more 

than four persons shall be paid a salary at a rate of more than 

$5,000 a year.

(d) All officers and employees of the General Accounting Office, whether transferred thereto or appointed by the Comptroller General, shall perform such duties as may be assigned to 

them by him. (e) All official acts performed by such officers or employees 

specially designated therefor by the Comptroller General shall 

have the same force and effect us though performed by the 

Comptroller General in person. (f) The Comptroller General shall make such rules and regulations, as may be necessary for carrying on the work of the 

General Accounting Office, including rules and regulations concerning the admission of attorneys to practice before such office.

SEC. 312. (a) The Comptroller General shall investigate, at 

the seat of government or elsewhere, all matters relating to the 

receipt on matters relating to disbursement, and application of 

public funds, an shall make to the President when requested by 

him, and to Congress at the beginning of each regular session, a 

report in writing of the work of the General Accounting Office, 

containing recommendations concerning the legislation he may 

deem necessary to facilitate the prompt and accurate rendition 

and settlement of accounts and concerning such other matters 
593 BUDGET AND ACCOUNTING ACT OF 1921 Sec. 315

relating to the receipt, disbursement, and application of public 

funds as he may think advisable: In such regular report, or in 

special reports at any time when Congress is in session, he shall 

make recommendations looking to greater economy or efficiency 

in public expenditures. (b) He shall make such investigations and reports as shall be 

ordered by either House of Congress or by any committee of either House having jurisdiction over revenue, appropriations, or 

expenditures. The Comptroller General shall also, at the request of any such committee, direct assistants from his office to 

furnish the committee such aid and information as it may request. (c) The Comptroller General shall specially report to Congress every expenditure or contract made by any department or 

establishment m any year in violation of law. (d) He shall submit to Congress reports upon the adequacy 

and effectiveness of the administrative examination of accounts 

and the respective departments and establishments and upon 

the adequacy and effectiveness of departmental inspection of 

the offices and accounts of fiscal officers.

(e) He shall furnish such information relating to expenditures and accounting to the Bureau of the Budget as it may request from time to time.

SEC. 313. All departments and establishments shall furnish 

to the Comptroller General such information regarding the 

powers, duties, activities, organization, financial transactions, 

and methods of business of their respective offices as he may 

from time to time require of the Comptroller General, or any of 

his assistants or employees, when duly authorized by him, shall 

for the purpose of securing such information, have access to and 

the right to examine any books, documents, papers, or records of 

any such department or establishment. The authority contained 

in this section shall not be applicable to expenditures made under the provisions of section 291 of the Revised Statutes.

SEC. 314. The Civil Service Commission shall establish an 

eligible II register for accountants for the General Accounting 

Office, and the examinations of applicants for entrance upon 

such register shall be based upon questions approved by the 

Comptroller General.

SEC. 315. (a) All appropriations for the fiscal year ending 

June 30, 1922 for the offices of the Comptroller of the Treasury 

and the six auditors, are transferred to and made available for 

the General Accounting Office, except as otherwise provided 

herein. 

(b) During such fiscal year the Comptroller General, within 

the total appropriations available for the General Accounting 

Office, may make such changes in the number and compensation of officers and employees appointed by him or transferred 

to the General Accounting Office under this Act as may be necessary.
Sec. 318 BUDGET AND ACCOUNTING ACT OF 1921 594

(c) There shall also be transferred to the General Accounting 

Office such portions of the appropriations for rent and contingent and miscellaneous expenses, including allotments for printing and binding, made for the Treasury Department for the fiscal year ending June 30, 1922, as are equal to the amounts expended from similar appropriations during the fiscal year ending June 30, 1921, by the Treasury Department for the offices of 

the Comptroller of the Treasury and the six auditors. (d) During the fiscal year ending June 30, 1922, the appropriations and portions of appropriations referred to in this section shall be available for salaries and expenses of the General 

Accounting Office, including payment for rent in the District of 

Columbia, traveling expenses, the purchase and exchange of law 

books, books of reference, and for all necessary miscellaneous 

and contingent expenses.

SEC. 316. The General Accounting Office and the Bureau of 

Accounts shall not be construed to be a bureau or office created 

since January 1, 1916, so as to deprive employees therein of the 

additional compensation allowed civilian employees under the 

provisions of section 6 of the Legislative, Executive, and Judicial 

Appropriation Act for the fiscal year ending June 30, 1922, if 

otherwise entitled thereto.

SEC. 317. The provisions of law prohibiting the transfer of 

employees of executive departments and independent establishments until after service of three years shall not apply during the fiscal year ending June 30, 1922, to the transfer of employees to the General Accounting Office.

SEC. 318. This Act shall take effect upon its approval by the 

President: Provided, That sections 301 to 317, inclusive, relating 

to the General Accounting Office and the Bureau of Accounts, 

shall on July 1, 1921.448

 448 This Act became law on June 10, 1921. This act has been officially referred to as “the General Accounting Act of 1921”, but is usually referred to 

as “the Budget and Accounting Act of 1921”. Section 1 of the Act indicates it 

is to be cited with this latter title.
595

EMPLOYMENT ACT OF 1946
 

596
 

597

EMPLOYMENT ACT OF 1946

[PUBLIC LAW 304—79TH CONGRESS]

[S. 380]

AN ACT

To declare a national policy on employment, production, and 

purchasing power, and for other purposes.

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled,

SHORT TITLE

SECTION 1. This Act may be cited as the "Employment Act of 

1946”.

DECLARATION OF POLICY

SEC. 2. The Congress hereby declares that it is the continuing policy and responsibility of the Federal Government to use 

all practicable means consistent with its needs and obligations 

and other essential considerations of national policy, with the 

assistance and cooperation of industry, agriculture, labor, and 

State and local governments, to coordinate and utilize all its 

plans, functions, and resources for the purpose of creating and 

maintaining, in a manner calculated to foster and promote free 

competitive enterprise and the general welfare, conditions under which there will be afforded useful employment opportunities, including self-employment, for those able, willing and seeking to work, and to promote maximum employment, production, 

and purchasing power.

ECONOMIC REPORT OF THE PRESIDENT

SEC. 3. (a) The President shall transmit to the Congress 

within sixty days after the beginning of each regular session 

(commencing with the year 1947) an economic report (hereinafter called the “Economic Report”) setting forth (1) the levels of 

employment, production and purchasing power obtaining in the 

United States and such levels needed to carry out the policy declared in section 2; (2) current and foreseeable trends in the levels of employment, production, and purchasing power; (3) a review of the economic program of the Federal Government and a 

review of economic conditions affecting employment in the United States or any considerable portion thereof during the preceding year and of their effect upon employment, production, and 

purchasing power; and (4) a program for carrying out the policy 

declared in section 2, together with such recommendations for 

legislation as he may deem necessary or desirable.
Sec. 4 EMPLOYMENT ACT OF 1946 598

(b) The President may transmit from time to time to the 

Congress reports supplementary to the Economic Report, each 

of which shall include such supplementary or revised recommendations as he may deem necessary or desirable to achieve 

the policy declared in section 2.

(c) The Economic Report, and all supplementary reports 

transmitted under subsection (b), shall, when transmitted to 

Congress, be referred to the joint committee created by section 

5.

COUNCIL OF ECONOMIC ADVISORS TO THE PRESIDENT

SEC. 4. (a) There is hereby created in the Executive Office of 

the Presidential Council of Economic Advisers (hereinafter 

called the “Council”). The Council shall be composed of three 

members who shall be appointed by the President, by and with 

the advice and consent of the Senate, and each of whom shall be 

a person who, as a result of his training, experience, and attainments, is exceptionally qualified to analyze and interpret 

economic developments, to appraise programs and activities of 

the Government in the light of the policy declared in section 2, 

and to formulate and recommend national economic policy to 

promote employment, production, and purchasing power under 

free competitive enterprise. Each member of the Council shall 

receive compensation at the rate of $15,000 per annum. The 

President shall designate one of the members of the Council as 

chairman and one as vice chairman, who shall act as chairman 

in the absence of the chairman.

(b) The Council is authorized to employ, and fix the compensation of, such specialists and other experts as may be necessary 

for the carrying out of its functions under this Act, without regard to the civil-service laws and the Classification Act of 1923,

as amended, and is authorized, subject to the civil-service laws, 

to employ such other officers and employees as may be necessary for carrying out its functions under this Act, and fix their 

compensation in accordance with the Classification Act of 1923,

as amended.

(c) It shall be the duty and function of the Council—

(1) to assist and advise the President in the preparation 

of the Economic Report;

(2) to gather timely and authoritative information concerning economic developments and economic trends, both 

current and prospective, to analyze and interpret such information in the light of the policy declared in section 2 for 

the purpose of determining whether such developments and 

trends are interfering, or are likely to interfere, with the 

achievement of such policy and to compile and submit to the 

President studies relating to such developments and trends;
599 EMPLOYMENT ACT OF 1946 Sec. 5

 

(3) to appraise the various programs and activities of the 

Federal Government in the light of the policy declared in 

section 2 for the purpose of determining the extent to which 

such programs and activities are contributing, and the extent to which they are not contributing, to the achievement 

of such policy, and to make recommendations to the President with respect thereto; 

(4) to develop and recommend to the President national 

economic policies to foster and promote free competitive enterprise, to avoid economic fluctuations or to diminish the effects thereof, and to maintain employment, production, and 

purchasing power; 

(5) to make and furnish such studies, reports thereon, 

and recommendations with respect to matters of Federal 

economic policy and legislation as the President may request.

(d) The Council shall make an annual report to the President in December of each year.

(e) In existing powers, functions and duties under this Act—

(1) the Council may constitute such advisory committees 

and may consult with such representatives of industry, agriculture, labor, consumers, State and local governments, and 

other groups, as it deems advisable;

(2) the Council shall, to the fullest extent possibl utilize 

the services, facilities, and information (including statistical 

information ) of other Government agencies as well as of private research agencies, in order that duplication of effort 

and expense may be avoided.

(f) To enable the Council to exercise its powers, functions, 

and duties under this Act, there are authorized to be appropriated (except for the salaries of the members and the salaries of 

officers and employees of the Council) such sums as may be necessary. For the salaries of the members and the salaries of officers and employees of the Council, there is authorized to he appropriated not exceeding $345,000 in the aggregate for each fiscal year.

JOINT COMMITTEE ON THE ECONOMIC REPORT

SEC. 5. (a) There is hereby established a Joint Committee on 

the Economic Report, to be composed of seven Members of the 

Senate, to be appointed by the President of the Senate, and seven Members of the House of Representatives, to be appointed by 

the Speaker of the House of Representatives. The party representation on the joint committee shall as nearly as may be feasible reflect the relative membership of the majority and minority parties in the Senate and House of Representatives.
Sec. 5 EMPLOYMENT ACT OF 1946 600

(b) It shall be the function of the joint committee—

(1) to make a continuing study of matters relating to the 

Economic Report;

(2) to study means of coordinating programs in order to 

further the policy of this Act; and

(3) as a guide to the several committees of the Congress 

dealing with legislation relating to the Economic Report, not 

later than May 1 of each year (beginning with the year 1947) 

to file a report with the Senate and the House of Representatives containing its findings and recommendation s with respect to each of the main recommendations made by the 

President in the Economic Report, and from time to time to 

make such other reports and recommendation to the Senate 

and House of Representatives as it deems advisable.

(c) Vacancies in the Membership of the joint committee shall 

not affect the power of the remaining members to execute the 

functions of the joint committee, and shall be filled in the same 

manner as in the case of the original selection. The joint committee shall select a chairman and a vice chairman from among 

its members.

(d) The joint committee, or any duly authorized subcommittee thereof, is authorized to hold such hearing as it deems advisable, and, within the limitations of its appropriations, the 

joint committee is empowered to appoint and fix the compensation of such experts, consultants, technicians, and clerical and 

stenographic assistants, to procure such printing and binding, 

and to make such expenditures, as it deems necessary and advisable. The cost of stenographic services to report hearings of 

the joint committee, or any subcommittee thereof, shall not exceed 25 cents per hundred words. The joint committee is authorized to utilize the services, information, and facilities of the departments and establishments of the Government, and also of 

private research agencies.

(e) There is hereby authorized to be appropriated for each 

fiscal year, the sum of $50,000, or so much thereof as may be 

necessary, to carry out the provisions of this section, to be disbursed by the Secretary of the Senate on vouchers signed by the 

chairman or vice chairman.

Approved February 20, 1946.
601

SCOREKEEPING GUIDELINES
602
SCOREKEEPING GUIDELINES

_______

These budget scorekeeping guidelines are 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, as amended; the Balanced

Budget and Emergency Deficit Control Act of 1985 (BBEDCA), as amended; and the Statutory Pay-As-You-Go-Act of 

2010 (S-Paygo). 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 are reviewed annually by the scorekeepers and

revised as necessary to adhere to the purpose. They cannot 

be changed unless all of the scorekeepers agree. New accounts or activities are classified only after consultation

among the scorekeepers. Accounts and activities cannot be

reclassified unless all of the scorekeepers agree. The scorekeeping guidelines have not been revised to reflect the impact 

of S-Paygo, especially as it relates to rule 3 and BBEDCA, as 

amended.449

1. Classifications of Appropriations

A list of appropriations that are normally enacted in appropriations acts is included in the conference report of the 

Balanced Budget Act of 1997,450 House Report 105-217, pages

1014-1053. 451 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.

 449 OMB added this caveat in the July 21, 2010 update to A-11. 450 The list was originally included in the Joint Explanatory Statement of 

Managers of the Conference Report on the Balanced Budget Act of 1997 

(Pub. L 105–33). 451 OMB modified the text from the actual rule to reflect the fact that the 

A-11 guidelines do not include a list of appropriations.
Rule 6 SCOREKEEPING GUIDELINES 604

3. Direct spending programs

Revenues,452 entitlements and other mandatory programs

(including offsetting receipts) will be scored at current law

levels as defined in section 257 of BBEDCA,453 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

CBA454 scoring, direct spending savings that are included in

both an appropriations bill and a reconciliation bill will be

scored to the reconciliation bill and not to the appropriations

bill. For scoring under sections 251 or 252 of BBEDCA, 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. 

 452 Scorekeepers agreed to add the term “revenues” at the November, 2014 

scorekeepers meeting. 453 BBEDCA refers to the Balanced Budget and Emergency Deficit Control 

Act of 1985 (“GRH” is used in the original 1997 references to this law). 454 “CBA” refers to the Congressional Budget Act of 1974.
605 SCOREKEEPING GUIDELINES Rule 10

7. Advance appropriations

Advance appropriations of budget authority will be scored

as new budget authority in the fiscal year in which the funds

be- come 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 and 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,455 such amounts

of budget authority will be projected at zero. Outlay estimates

for both the transfer- ring and receiving accounts will be

based on the spending patterns appropriate to the respective

accounts.

9. Delay of obligations

Appropriations 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 obligation 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 upon the enactment of a subsequent appropriation, new budget authority and 

 455 This change was made in the October 1997 revision to A-11.
Rule 11 SCOREKEEPING GUIDELINES 606

outlays will be scored with the subsequent appropriation. If a 

discretionary appropriation is contingent on the 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. If direct spending legislation is contingent on the fulfillment of some action by the 

Executive branch or some other event normally estimated, new 

budget authority and outlays will be scored based on the best 

information about when (or if) the contingency will be met. 

Non-law making contingencies within the control of the Congress are not scoreable events.

11. Scoring purchases

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.456

 456 OMB memorandum dated September 11, 1997 suggests that the scorekeepers agreed to the following rewording for the second paragraph of the 

lease-purchase rule but that change did not make it into the final version of 

the rule or into the A-11 revisions even though OMB indicated that these 

changes would be reflected in the A-11 revisions published in October 1997:

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 excluding 

obligations for 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. The difference 

between the total estimated legal obligations (excluding obligations for annual operating expenses) and their estimated net present value represents im-
607 SCOREKEEPING GUIDELINES Rule 11

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 a 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 outlays

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 existing 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.

 puted interest costs. Imputed interest costs will be calculated at Treasury 

rates for marketable debt instruments of similar maturity to the lease period, 

will be classified as mandatory and will not be scored against the legislation 

or for current level but will count for other purposes.
Rule 11 SCOREKEEPING GUIDELINES 608

− 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 leasepurchase, 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 Antideficiency 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.
609 SCOREKEEPING GUIDELINES Rule 15

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., write-offs of 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 write off 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 or scoring 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.457

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 cash 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 or GRH.

The net financial cost to the Federal government of an asset

 457 The effect of this provision is to limit the use of increases in administrative in order to claim corresponding savings through greater efficiencies or 

oversight in direct spending programs. Compare program integrity discretionary spending adjustments that are designed to encourage greater oversight spending in order to increase efficiencies in direct spending programs. 

See 250(b) of BBEDCA.
Rule 16 SCOREKEEPING GUIDELINES 610

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 percent- age points to reflect 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.
611

APPROPRIATED ENTITLEMENTS AND MANDATORIES
612
613

APPROPRIATED ENTITLEMENTS

AND OTHER MANDATORIES 

AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG 

ADMINISTRATION AND RELATED AGENCIES

 ACCOUNT 

TITLE TAFS458 OMBACCOUNT COMMENT

DEPARTMENT OF AGRICULTURE (USDA)

Child 

Nutrition 

Programs 

12-3539 005-84-3539 Authorized by 42 U.S.C. 1771 

et seq. This fund was created to 

extend, expand, and strengthen 

the School Lunch Program by 

enabling the Secretary of Agriculture to encourage the domestic consumption of agricultural and other foods, by assisting States through grants inaid and other means, to meet 

more effectively the nutritional 

needs of our children.

Commodity 

Credit

Corporation 

Fund 

12-4336 005-49-4336 Authorized by 15 U.S.C. 713a11, the fund is used to reimburse the Commodity Credit 

Corporation (CCC) for its net 

realized loss incurred during 

such fiscal year. The CCC is a 

government-owned and operated entity created to stabilize, 

support, and protect farm income and prices.

Funds for 

Strengthening 

Markets, 

Income and 

Supply 

(Section 32)

12-5209 005-45-5209 Authorized by 7 U.S.C. 612(c), 

this fund enables the Secretary 

of Agriculture to encourage

exportation of agricultural 

commodities and products, encourage the domestic consumption of such commodities or 

products, and reestablish farmers’ purchasing power.

 458 TAFS is an acronym for “Treasury Appropriation Fund Symbol” used by 

the Office of Management and Budget for the preparation of the A-11 Circular. 

It “combines the Treasury agency or department code, the Federal account 

symbol, and the period of availability of the resources in the account.” (OMB 

Circular No. A–11 (2015))
LIST OF APPROPRIATED MANDATORIES 614

AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG 

ADMINISTRATION AND RELATED AGENCIES

(CONTINUED)

ACCOUNT 

TITLE TAFS459 OMBACCOUNT COMMENT

DEPARTMENT OF AGRICULTURE (USDA)

(CONTINUED)

Dairy 

Indemnity 

Program

12-3314 005-49-1140 Authorized by 7 U.S.C. Chapter 

76 (P.L.-90-484), this program 

has been extended several 

times; most recently via the 

Food, Conservation, and Energy 

Act of 2008 in P.L. 110-234 for 

authorization through 2012. 

It pays for programs designed 

to strengthen the dairy industry’s position in the marketplace, to maintain and expand 

domestic and foreign markets 

and to expand on the uses for 

fluid milk and dairy products.

Supplemental 

Nutrition 

Assistance

Program

12-3505 005-84-3505 Authorized by 7 U.S.C. Chapter 

51, this fund, used to be known 

as the Food Stamp program, 

pays for programs designed to 

raise the levels of nutrition 

among low-income households.460

Federal Crop 

Insurance 

Corporation 

Fund

12-4085 006-48-4313 Authorized by 7 U.S.C. Chapter 

36, the Federal Crop Insurance 

Act, this fund pays for programs that promote national 

welfare by improving the economic stability of agriculture 

through a sound system of crop 

insurance and providing the 

means for research and experience helpful in devising and 

establishing such insurance.461

 459 TAFS is an acronym for “Treasury Appropriation Fund Symbol” used by 

the Office of Management and Budget for the preparation of the A-11 Circular, 

which provides essential information related to the Federal Budget process. 460 Note from OMB: The appropriation language designating this program 

as mandatory was due to expire in 2012. 461 Note from OMB: Only a portion of this fund is considered mandatory.
615 LIST OF APPROPRIATED MANDATORIES

COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF COMMERCE

Coastal Zone 

Management 

Fund

13-4313 006-48-4313 Pursuant to section 308 of the 

Coastal Zone Management Act 

of 1972 (16 U.S.C. 1456a), this 

fund consists of loan repayments from the former Coastal 

Energy Impact Program. Loans 

under this program were made 

prior to 1992.462

 462 Note from OMB: Despite its establishment, the balances were not transferred to the General Fund in accordance with the Federal Credit Reform Act 

of 1990 (FCRA), even though the account effectively serves as a liquidating 

account. To resolve this inconsistency, the Budget Appendix (of the President’s 

Budget) shows a proposal to cancel all balances in the Coastal Zone Management Fund, make future payments to the Fund subject to FCRA, and eliminate the annual transfer from this account to the Operations, Research, and 

Facilities account.
LIST OF APPROPRIATED MANDATORIES 616

COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES

(CONTINUED)

ACCOUNT 

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF JUSTICE

Fees and 

Expenses of 

Witnesses

15-0311 011-05-0311 Authorized by 28 U.S.C. 530(c), 

this fund is used for expenses, 

mileage, compensation, protection and per diem in lieu of subsistence, of witnesses; fees and 

expenses of neutrals in alternative dispute resolution proceedings, where the DOJ is a party; 

and construction of protected 

witness safe sites.

Independent 

Counsel

15-0327 011-05-0327 Authorized by 28 U.S.C. 591 

note, this fund was created as 

permanent appropriation for 

independent and special counsel 

activities.

Public Safety 

Officer 

Benefits

15-0403 316-00-3400 Authorized by 42 U.S.C. 3796, 

this fund is used to enhance the 

appeal of service in public safety agencies; to extend the benefits of higher education to qualified and deserving persons who, 

by virtue of the death of or total 

disability of an eligible officer, 

may not be able to afford it otherwise; and to allow the family 

members of eligible officers to 

attain the vocational and educational status which they would 

have attained had a parent or 

spouse not been killed or disabled in the line of duty.
617 LIST OF APPROPRIATED MANDATORIES

DEFENSE

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

CENTRAL INTELLIGENCE AGENCY

Central 

Intelligence 

Agency 

Retirement 

and Disability 

System

56-3400 316-00-3400 Authorized by 50 U.S.C. Chapter 38, this account pays for 

retirement and disability benefits of CIA officers who meet the 

stated requirements.
LIST OF APPROPRIATED MANDATORIES 618

FINANCIAL SERVICES AND GENERAL GOVERNMENT

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF TREASURY

Administering 

the 

Public Debt

20-0560 015-12-0520 Established by the Treasury, 

Postal Service and General 

Government Appropriations Act 

of 1991 (P.L. 101–509, 104 Stat. 

1394), this account enables the 

Bureau of the Public Debt to 

reimburse the Federal Reserve 

Banks for acting as fiscal agents 

of the Federal Government in 

support of financing the public 

debt. 

This program was listed as 

footnote 10 in 1997 list of appropriated entitlements and 

mandatory programs.

Payment of 

Government 

Losses in 

Shipment

20-1710 015-12-1710 Authorized by 40 U.S.C. Section 

17303, this account was created 

as self-insurance to cover losses 

in shipment of Government 

property such as coins, currency, securities, certain losses 

incurred by the Postal Service, 

and losses in connection with 

the redemption of savings 

bonds. 

Approximately 1,100 claims are 

paid annually.

EXECUTIVE OFFICE OF THE PRESIDENT

Compensation 

of the 

President

11-0001 100-05-0209 Authorized by 3 U.S.C. 102.

This fund pays the President’s 

salary.
619 LIST OF APPROPRIATED MANDATORIES

FINANCIAL SERVICES AND GENERAL GOVERNMENT

(CONTINUED)

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

JUDICIAL BRANCH

Salaries and 

Expenses 

10-0920 002-25-0920 Authorized by law, this account 

pays for the salaries of circuit 

and district judges (including 

judges of the territorial courts of 

the United States), justices and 

judges retired from office or 

from regular active service, 

judges of the United States 

Court of Federal Claims, bankruptcy judges, magistrate judges, and all other officers and 

employees of the Federal Judiciary not otherwise specifically 

provided for, necessary expenses of the courts, and the purchase, rental, repair, and cleaning of uniforms for Probation 

and Pre-trial Services Office 

staff.

Payment to 

judiciary trust 

funds

10-0941 002-35-0941 Authorized by 28 U.S.C. 377(o); 

28 U.S.C. 376(c);and 28 U.S.C. 

178(l), this account pays for the 

benefits and annuity of judges 

and their survivors who meet 

specific requirements. 

Salaries and 

Expenses 

10-0100 002-05-0100 Authorized by 31 U.S.C. 1343 

and 1344, this account pays for 

expenses necessary for the operation of the Supreme Court, 

as required by law, excluding 

care of the building and 

grounds, including purchase or 

hire, driving, maintenance, and 

operation of an automobile for 

the Chief Justice, and hiring of 

passenger motor vehicles for the 

use of agencies and select officials. 
LIST OF APPROPRIATED MANDATORIES 620

FINANCIAL SERVICES AND GENERAL GOVERNMENT

(CONTINUED)

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

JUDICIAL BRANCH 

(CONTINUED)

Salaries and 

Expenses 

10-0510 002-07-0510 Authorized by P.L. 105–339 

(51021) October 31, 1998, Veterans Employment Opportunities Act of 1998, this account 

pays for salaries of the chief 

judge, judges, and other officers 

and employees, and for necessary expenses of the Federal 

Circuit court, as authorized by 

law. The United States Court of 

Appeals for the Federal Circuit, 

located in Washington, D. C., 

has exclusive nationwide jurisdiction over a large number of 

diverse subject areas, such as 

appeals in all patent cases, all 

government contract cases, all 

international trade cases, all 

government contract cases, all 

government personnel cases, all 

cases involving monetary claims 

against the United States under 

the Tucker Acts, veterans cases, 

and many others. Additional 

subject areas have been added 

to this court’s jurisdiction almost yearly.
621 LIST OF APPROPRIATED MANDATORIES

FINANCIAL SERVICES AND GENERAL GOVERNMENT

(CONTINUED)

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

OFFICE OF PERSONNEL MANAGEMENT

Government 

payment for 

annuitants, 

employee life 

insurance

24-0500 027-00-0500 Authorized by 5 U.S.C. Chapter 

87, this fund provides for the 

life insurance benefits of government employees. 

Government 

payment for 

annuitants, 

employees 

health 

benefits 

24-0206 027-00-0206 Authorized by 5 U.S.C. Chapter 

89, this fund is used to deliver 

health benefits to government 

employees. 

Salaries and 

Expenses 

10-0400 002-15-0400 Established under Article III of 

the United States Constitution, 

and created by 94 Stat. 1727; 

P.L. 96-417, the United States 

Court of International Trade 

was the successor to the former 

United States Customs Court. 

The court has original and exclusive jurisdiction of civil actions against the United States, 

its agencies and officers, and 

certain civil actions brought by 

the United States, arising out of 

import transactions and Federal 

statutes affecting customs and 

international trade. This account pays for the salaries of 

the chief judge and eight judges, 

salaries of the officers and employees of the court, services, 

and necessary expenses of the 

court.
LIST OF APPROPRIATED MANDATORIES 622

FINANCIAL SERVICES AND GENERAL GOVERNMENT

(CONTINUED)

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

OFFICE OF PERSONNEL MANAGEMENT 

(CONTINUED)

Payment to 

civil service 

retirement 

and disability 

fund 

24-0200 027-00-0200 Authorized by to 33 U.S.C. 771-

6, this account funds the benefits for surviving spouses of 

Lighthouse Service employees. 

FEDERAL DEPOSIT INSURANCE CORPORATION

FSLIC 

Resolution

fund 

51-4065 357-30-4065 Authorized by 12 U.S.C. 1821a, 

FSLIC (Federal Savings and 

Loan Insurance Corporation) 

was established in 1988 when 

the FSLIC faced massive thrift 

failures with little cash. 

The corporation shut down 

hundreds of sick thrifts by issuing notes promising to pay acquirers for losses on assets. 

The fund was established to 

carry out on these past commitments. The fund is still 

making these payments today, 

but its balance is less than $1 

million.
623 LIST OF APPROPRIATED MANDATORIES

HOMELAND SECURITY

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF HOMELAND SECURITY

Retired Pay 70-0602 024-60-0602 This fund is used to make payments under the Retired Serviceman’s Family Protection 

and Survivor Benefits Plans, 

payment for career status bonuses, concurrent receipts and 

combat-related special compensation under the National Defense Authorization Act, and 

payments for medical care of 

retired personnel and their dependents under 10 U.S.C. 

Chapter 55. 

The 1997 Joint Statement listed 

the TAFS for this account as: 

69-0241.

Maritime 

Oil Spill 

Programs

70-8349 024-60-0602 This account provides resources 

from the Oil Spill Liability 

Trust Fund for costs associated 

with the cleanup of oil spills. 

These include emergency costs 

associated with oil spill cleanup, 

the Prince William Sound Oil 

Spill Recovery Institute, and 

the payment of claims to those 

who suffer harm from oil spills 

where the responsible party is 

not identifiable or is without 

resources. 

The program activities in this 

account will continue to be 

funded under separate permanent appropriations, and are 

being displayed in a consolidated format to enhance presentation. 
LIST OF APPROPRIATED MANDATORIES 624

INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF THE INTERIOR

Miscellaneous 

Trust Funds 

14-9971 010-04-9971 Pursuant to Section 307 of the 

Federal Land Policy and Management Act (43 U.S.C. 1701), 

this fund was established to be 

used as advanced for administrative costs, surveys, appraisals, and costs of making conveyances of omitted lands under 

section 211(b) of that Act, to 

remain available until expended.

Range 

Improvements 

14-5132 010-04-5132 Pursuant to 43 U.S.C. 1701 and 

43 U.S.C. 315 et seq., this fund 

collects a portion of the money 

associated with grazing fees to 

use for the maintenance of 

range improvements within 

grazing districts. 

Assistance to 

Territories

14-0412 010-85-0412 Authorized by law 48 U.S.C. 

1661 (c) and P.L. 94-241, funds 

from this account are transferred to the Northern Mariana 

Islands, as required by the covenant to establish the Islands in 

Political Union with the U.S. 

Compact of 

Free

Association 

14-0415 010-85-0415 Authorized by 48 U.S.C. Chapter 18 Subchapter II, this fund 

is used to aid the Government 

of Palau, pursuant to the compact between the U.S. and the 

Government of Palau.
625 LIST OF APPROPRIATED MANDATORIES

LABOR, HEALTH AND HUMAN SERVICES, EDUCATION 

AND RELATED AGENCIES

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF EDUCATION

Rehabilitation 

services and 

disability 

research 

91-0301 018-20-0301 This fund is used to carry out, 

to the extent not otherwise provided, the Rehabilitation Act of 

1973 (P.L.93--112), the Assistive Technology Act of 1998 

(P.L. 108-364), and the Helen 

Keller National Center Act. 

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Payments to 

States for 

Child Support 

Enforcement 

and Family 

Support

75-1501 009-70-1501 Authorized under titles I, IV-D, 

X, XI, XIV, and XVI of the Social Security Act and the Act of 

July 5, 1960 (24 U.S.C. Chapter 

9; Hospitalization of mentally 

ill nationals returned from foreign countries), this fund is 

used to pay States or other nonFederal entities to help provide

services for the Aged, Blind, 

Disabled, Children, General 

provisions, peer review and 

admin simplification under the 

Social Security Act, as well as 

for the hospitalization of mentally ill nationals who returned 

from foreign countries. 

Payments for

Foster Care 

and 

Permanency

75-1545 009-70-1545 Authorized to make payments 

to States or other non-Federal 

entities under title IV-E of the 

Social Security Act, section 474, 

this fund is used to support 

States in their payments for 

Foster Care and Adoption Assistance.
LIST OF APPROPRIATED MANDATORIES 626

LABOR, HEALTH AND HUMAN SERVICES, EDUCATION 

AND RELATED AGENCIES

(CONTINUED)

DEPARTMENT OF HEALTH AND HUMAN SERVICES

(CONTINUED)

Social Services 

Block Grant 

75-1534 009-70-1534 Pursuant to section 2002 of the 

Social Security Act (42 U.S.C. 

1397a), this fund provides services related to: child care, protective services for children and 

adults, services for children and 

adults in foster care, services 

related to the management and 

maintenance of the home, day 

care services for adults, transportation services, family planning services, training and related services, employment 

services, information, referral, 

and counseling services, the 

preparation and delivery of 

meals, health support services 

and appropriate combinations 

of services designed to meet the 

special needs of children, the 

aged, the mentally retarded, 

the blind, the emotionally disturbed, the physically handicapped, and alcoholics and drug 

addicts.

Promoting 

Safe and 

Stable 

Families

(CBO Account 

Title: 

Supporting 

Healthy 

Families and 

Adolescent 

Development)

75-1512 009-70-1512 Authorized to carry out of sections 436 and 437 of the Social 

Security Act, this fund holds 

the reserves to support: evaluation, research, training and 

technical assistance; state court 

improvements; Indian tribes or 

tribal consortia; monthly caseworker visits; regional partnership grants; and children affected by Meth or other substance abuse. This program 

provides funds for a broad 

range of child welfare services, 

including family preservation 

and family support services. 

Additionally, this account includes funding for the Personal 

Responsibility Education Program (PREP) and Abstinence 

Education which were made 

available by the Patient Protection and Affordable Care Act 

(P.L. 111–148 Section 2953).
627 LIST OF APPROPRIATED MANDATORIES

LABOR, HEALTH AND HUMAN SERVICES, EDUCATION 

AND RELATED AGENCIES

(CONTINUED)

DEPARTMENT OF HEALTH AND HUMAN SERVICES

(CONTINUED)

Grants to 

States for 

Medicaid 

75-0512 009-38-0512 Authorized by titles XI and XIX 

of the Social Security Act, this 

fund provides for grants to 

states for medical assistance 

programs and general provisions, peer review and admin 

simplification.

Payments to 

Health Care 

Trust Funds 

75-0580 009-38-0580 Authorized by sections 217(g), 

1844, and 1860D-16 of the Social Security Act, sections 

103(c) and 111(d) of the Social 

Security Amendments of 1965 

(P.L. 89-97), section 278(d) of 

P.L. 97-248 to cover payment to 

the Federal Hospital Insurance 

Trust Fund and the Federal 

Supplementary Medical Insurance Trust Fund and administrative expenses incurred pursuant to section 201(g) of the 

Social Security Act. 

The trust funds associated with 

these accounts relate to Benefits for Veterans, government 

contributions and contingency 

reserves, supplemental medical 

insurance benefits for the Aged 

and Disabled, the Medicare 

Prescription Drug Benefits, 

Federal Disability Insurance, 

Medicare coverage and the coverage of uninsured individuals 

for hospital insurance benefits. 

Medical 

Facilities 

Guarantee 

and Loan 

Fund

75-4430 009-15-9931 Titles VI and XVI of the Public 

Health Service Act (42 U.S.C. 

Chapter 6A Subchapter IV) 

established a loan and loan 

guarantee fund for medical 

facilities with a maximum 

amount allowable for the Government’s liability. Direct loans 

were made available for public 

facilities and guaranteed loans 

for private, nonprofit facilities. 
LIST OF APPROPRIATED MANDATORIES 628

LABOR, HEALTH AND HUMAN SERVICES, EDUCATION 

AND RELATED AGENCIES

(CONTINUED)

DEPARTMENT OF HEALTH AND HUMAN SERVICES

(CONTINUED)

Vaccine Injury 

Compensation 

Program Trust 

Fund 

20-8175 009-15-8175 Pursuant to P.L. 99-660 and 

P.L. 100-203, and 26 U.S.C. 

9510, this account pays for 

compensation under the public 

Health Service Act (as in effect 

on October 18, 2000, captured 

in 42 U.S.C. Chapter 6A, Subchapter XIX) for vaccinerelated injury or death with 

respect to any vaccine. 

Vaccine Injury 

Compensation

75-0320 009-15-0320

Health

Resources and 

Services

75-0350 009-15-0350

Retirement 

Pay and

Medical 

Benefits for 

Commissioned 

Officers 

75-0379 009-91-0379 Authorized by law under the 

Dependents’ Medical Care Act 

(P.L. 84-569), 10 U.S.C. Chapter 55, this account pays for 

programs designed to provide 

improved and uniform medical 

service for dependents of members of the uniformed services 

and thereby enhance the morale of service personnel.

Medical 

Facilities 

Guarantee and 

Loan Fund

75-9931 009-15-9931

DEPARTMENT OF LABOR

Federal 

Unemployment 

Benefits and 

Allowances

16-0326 012-05-0326 Authorized by 19 U.S.C. Chapter 12 Subchapter II Part 2 

Subpart A (19 U.S.C. 2291), 

this fund is used to pay for

unemployment benefits.

Special 

Benefits

16-1521 012-15-1521 Authorized by 5 U.S.C. Chapter 81, this fund is used to pay 

benefits to employees who have 

been injured on the job. 
629 LIST OF APPROPRIATED MANDATORIES

LABOR, HEALTH AND HUMAN SERVICES, EDUCATION 

AND RELATED AGENCIES

(CONTINUED)

DEPARTMENT OF LABOR 

(CONTINUED)

Advances to 

the 

Unemployment 

Trust Fund 

and Other 

Funds 

16-0327 012-05-0327 Pursuant to sections 905 (d) 

and 1203 of the Social Security 

Act, this fund is used to pay the 

Black Lung Disability Trust 

Fund of section 9501 (c) (1) of 

the Internal Revenue Code of 

1954, and for nonrepayable 

advances to the Unemployment 

Trust Fund as authorized in 5 

U.S.C. 8509.

Black Lung 

Disability 

Trust Fund 

16-8144 012-15-8144 Authorized by section 

9501(d)(1), (2), (4), and (7) of 

the Internal Revenue Code of 

1954, this account pays for all 

claims of miners of their survivors in which the miner’s last 

coal mine employment was 

before January 1, 1970. The 

fund remains available until 

expended.

SOCIAL SECURITY ADMINISTRATION

Special 

Benefits for 

Disabled Coal 

Miners

16-0169 012-15-0169 Authorized by Title IV of the 

Federal Mine Safety and 

Health Act (P.L. 91-173), this 

account pays for the benefits 

associated with the authorizing 

legislation. 

The 1997 Joint Statement 

listed the TAFS for this account as: 28-0409. 

Payments to 

Social Security 

Trust Funds 

28-0404 016-00-0404 For payment to the Federal 

Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust 

Fund, as provided under sections 201(m), 228(g), and 

1131(b)(2) of the Social Security Act.

Supplemental 

Security 

Income 

Program

28-0406 016-00-0406 Authorized by Titles XI and 

XVI of the Social Security Act, 

section 401 of P.L. 92–603, section 212 of P.L. 93–66, amended, section 405 of P.L. 95–216.
LIST OF APPROPRIATED MANDATORIES 630

LEGISLATIVE BRANCH

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

Compensation 

of Members 

and Related 

Administrative 

Expenses 

00-0200 001-10-0200 Authorized by 2 U.S.C. 38 and 

P.L. 104-186, this account dictates the annual compensation 

of the members of the House of 

Representatives.

Payments to 

Widows and 

Heirs of 

Deceased 

Members of 

Congress, 

House

00-0215 001-10-0200 As authorized by 2 U.S.C. 38a, 

payment of unpaid salary is 

disbursed in to the beneficiary 

or beneficiaries of the Member. 

It has also been the typical 

practice of the House to provide 

a death gratuity, equal to the 

Member’s annual salary, payable to the deceased Member’s 

widow or widower, or children, 

either in the annual legislative 

branch appropriations act or a 

measure providing supplemental funds for the legislative 

branch.463

Compensation 

of Members, 

Senate 

00-0100 001-05-0100 Authorized by 2 U.S.C. 38 and 

P.L. 104-186, this account dictates the annual compensation 

of the members of the Senate.

 463 From OMB: (Source: Cannon, Cannon’s Precedents, vol. VI, p. 380; and 

Lewis Deschler, Deschler’s Precedents of the United States House of Representatives, vol. II, H.Doc. 94-661, 94th Cong., 2nd sess. (Washington: GPO, 

1977), p. 52.)
631 LIST OF APPROPRIATED MANDATORIES

LEGISLATIVE BRANCH

(CONTINUED)

ACCOUNT

TITLE

TAFS OMB

ACCOUNT

COMMENT

Payments to 

widows and 

heirs of 

deceased 

members of 

Congress, 

Senate

00-0115 001-05-9911 Authorized by 2 U.S.C. 38 and 

P.L. 104-186, this account dictates the annual compensation 

of the members of the Senate. 

It has also been the typical 

practice of the House to provide 

a death gratuity, equal to the 

Senator’s annual salary, payable to the deceased Senator’s 

widow or widower, or children, 

either in the annual legislative 

branch appropriations act or a 

measure providing supplemental funds for the legislative 

branch.464

 464 From OMB: (Source: Cannon, Cannon’s Precedents, vol. VI, p. 380; and 

Lewis Deschler, Deschler’s Precedents of the United States House of Representatives, vol. II, H.Doc. 94-661, 94th Cong., 2nd sess. (Washington: GPO, 

1977), p. 52.)
LIST OF APPROPRIATED MANDATORIES 632

MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF VETERANS AFFAIRS

Compensation 

and Pensions

36-0102 029-25-0102 Authorized by 38 U.S.C. 107, 

chapters 11, 13, 51, 53, 55 and 

61, 92 Stat. 2508 and Article 

IV of the Soldiers’ and Sailors’

Civil Relief Act of 1940 (replaced by Service Members’

Civil Relief Act in 2004, P.L. 

108-189); and other benefits 

authorized by 38 U.S.C. 107, 

412, 777, and 806, Chapters 

23, 51,53,55 and 61, 50 U.S.C. 

App. 540-548, 43 Stat. 122, 

123; 45 Stat 735; 76 Stat. 

1198. 

Pursuant of the 1997 Joint 

Statement, this account consolidated the VA Compensation (36-0153) with VA Benefits (36-0154) accounts. 

Veterans 

Housing Benefit 

Program Fund

36-0138 029-25-1119 Pursuant to P.L. 105-368 in 

1998, this account consists of 

the consolidation of the Loan 

Guaranty Revolving Fund and 

the Guaranty and Indemnity 

Fund. Both these funds were 

authorized to pay for the cost 

of direct and guaranteed loans 

used to carry out the Veterans 

Housing Program. 

This account used to be known 

as the Housing Program Account. The 1997 Joint Statement listed the TAFS for this 

account as: 36-0138. 

Readjustment 

Benefits 

36-0137 029-25-0137 Authorized by 38 U.S.C. Chapter 30, this fund is used to assist in the readjustment of 

members of the Armed Forces 

to civilian life after their separation from military service.
633 LIST OF APPROPRIATED MANDATORIES

MILITARY CONSTRUCTION, VETERANS AFFAIRS,

AND RELATED AGENCIES 

(CONTINUED)

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF VETERANS AFFAIRS

(CONTINUED)

Veterans Insurance and Indemnities 36-0120 029-25-0120 Authorized by 38 U.S.C. Chapter 19, this account pays the 

annuities of beneficiaries of 

life insurance that meets the 

requirements stated in the 

authorizing law.
LIST OF APPROPRIATED MANDATORIES 634

STATE, FOREIGN OPERATIONS AND RELATED PROGRAMS

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

DEPARTMENT OF STATE

Payment to 

Foreign 

Service 

Retirement 

and

Disability 

Fund

19-0540 014-05-0540 Authorized by 22 U.S.C. Chapter 52 Subchapter VIII, the fund 

makes disbursements attributable to liability from military 

service, the Foreign Service 

Pension System, and unfunded 

interest of the Foreign Service 

Retirement and Disability System. 

This program has been considered an appropriated entitlement and mandatory program 

since 1997 and has not seen a 

change in status since. 

AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID)

Payment to 

the Foreign 

Service 

Retirement 

and Disability 

Fund (AID)

72-1036 184-15-1036 Authorized by Foreign Service 

Act of 1980 (P.L.96-465), this 

fund provides for the pension 

benefits of those who have been 

in the Foreign Service and 

meets the requirements of the 

law. 
635 LIST OF APPROPRIATED MANDATORIES

ACCOUNTS IN THE BALANCED BUDGET ACT OF 1997 

LIST THAT APPEAR TO BE INACTIVE

OR WERE RECLASSIFIED

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

COMMERCE, JUSTICE, SCIENCE AND RELATED AGENCIES

 

DEPARTMENT OF JUSTICE

Civil Liberties 

public education 

fund 

15-0329 Authorized in the Civil Liberties Act of 1988 (P.L. 100-383 

Sec. 104d), it was terminated 

either by 1998 or by running 

out of its appropriated fund 

limit. 

FINANCIAL SERVICES AND GENERAL GOVERNMENT

DEPARTMENT OF THE TREASURY

Payments to DC 

financial responsibility and 

management 

assistance authority 

20-1702 Established in 1995 by P.L. 

104-8 to help D.C. out of its 

climbing debts, this account 

was suspended in 2001 after 

several years of D.C. having a 

balanced budget. 

 

Payments to the 

farm credit system financial 

assistance corporation 

20-1850 Established in the late 1980s 

via 12 U.S.C. 2278b to help 

financially stressed System 

institutions through the issuance of bonds, this account’s 

authority to issue bonds terminated in 1992, but the 

bonds it issued had maturities 

of 15 years from the issued 

date. 

As a result, all bonds issued 

have been called or have matured, with the last bond maturing in June 2005, which 

was why the Federal Regulator (FCA) cancelled the fund’s 

charter as of December 31, 

2006. 
LIST OF APPROPRIATED MANDATORIES 636

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

 

FINANCIAL SERVICES AND GENERAL GOVERNMENT

(CONTINUED)

UNITED STATES POSTAL SERVICE

Payment to the 

postal service 

fund for nonfunded liabilities 

18-1004 This payment was made to 

the U.S. Postal Service to 

meet the liabilities of the former Post Office Dept. to the 

Employees’ Compensation 

Fund. Effective Oct. 1st, 1997, 

through P.L. 105-33 Section 

7001, the Balanced Budget 

Act of 1997, these liabilities 

became liabilities of the U.S. 

Postal Service payable out of 

the Postal Service Fund. 

Hence, this account no longer 

exists. 

LABOR, HEALTH AND HUMAN SERVICES,

EDUCATION, AND RELATED AGENCIES

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Job 

Opportunities 

and Basic Skills

75-1509 Originally authorized by the 

part F of Title IV of the Social 

Security Act, 42 U.S.C. 402 

(a)(19), but according to 42 

U.S.C. Chapter 7 Subchapter 

4--this program was repealed. 

HMO loan and 

loan guarantee 

fund 

75-4420 According to HHS’s CMS Financial Report in 2004, this 

account was closed.

MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES

DEPARTMENT OF VETERANS AFFAIRS

VA Burial benefits and miscellaneous assistance36-0455 According to the Senate Report 105-53, this program is 

now funded through VA’s 

Compensation and Benefits 

account (TAFS 36-0102) so it 

no longer exists. 
637 LIST OF APPROPRIATED MANDATORIES

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT,

AND RELATED AGENCIES

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

FHA-Mutual 

Mortgage 

Insurance 

Program 

Account 

86-0183 Reclassified as discretionary 

pursuant of agreement found 

in the Scorekeepers’ notes on 

Feb. 12th, 2001. This change 

was brought about through a 

discussion of the Ginnie Mae 

(GNMA) receipts, which result 

from similar authorities as 

FHA’s Mutual Mortgage Insurance Program (FHA-MMI) 

but GNMA was classified as 

Discretionary. 

Instead of reclassifying 

GNMA as mandatory, the 

scorekeepers reclassified the 

FHA-MMI fund as discretionary.
LIST OF APPROPRIATED MANDATORIES 638

POTENTIAL ADDITIONS ENACTED AFTER THE

BALANCED BUDGET ACT OF 1997 

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

DEPARTMENT OF THE INTERIOR

Payments in 

Lieu of Taxes 

14-1114 010-95-1114 Section 403 of P.L. 110-343, 

the Emergency Economic Stabilization Act of 2008, amended 31 U.S.C. Chapter 69 to 

direct that the spending be 

treated as if it was an appropriated entitlement and mandatory program from 2008-

2012. Mandatory spending 

was extended through 2014. 

LABOR, HEALTH AND HUMAN SERVICES,

EDUCATION, AND RELATED AGENCIES

DEPARTMENT OF LABOR

Administrative 

Expenses, 

Energy 

Employees 

Occupational 

Illness 

Compensation 

Act 

16-1524 012-15-1524 Authorized by the Energy 

Occupational Illness Compensation Program Act, 42 U.S.C. 

Chapter 84 Subchapter XVI, 

this fund pays for the compensation associated with its authorizing act. 

This is considered an appropriated mandatory program 

through directed scoring language that was included in 

Section 151(b) of the FY 2001 

Appropriations bill for DOL 

(P.L. 106-554) until all appropriated money is spent. 
639 LIST OF APPROPRIATED MANDATORIES

ACCOUNT

TITLE TAFS OMBACCOUNT COMMENT

LABOR, HEALTH AND HUMAN SERVICES,

EDUCATION, AND RELATED AGENCIES

(CONTINUED)

SOCIAL SECURITY ADMINISTRATION

Special benefits 

for certain WWII 

Veterans 

28-0401 016-00-0401 Pursuant to the provisions of 

title VIII of the Social Security Act as added by P.L. 106–

169, enacted December 14, 

1999, this program pays for 

the monthly benefits of WWII 

starting after September 2000 

(42 U.S.C. 1001-2). 

DEPARTMENT OF HEALTH AND HUMAN SERVICES

CDC-wide 

Activities and 

Program 

Support

75-0943 009-20-0943 This was on a list prepared by 

the Congressional Budget 

Office.

COMMERCE, JUSTICE, SCIENCE AND RELATED AGENCIES

DEPARTMENT OF JUSTICE

United States 

Trustee System 

Fund 

15-5073 This was on a list prepared by 

the Congressional Budget 

Office, but since it is interest 

earned on investments, OMB 

is uncertain as to how it 

should be classified.
640