II 

112TH CONGRESS 

1ST SESSION S. 1651 

To provide for greater transparency and honesty in the Federal budget 

process. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 4, 2011 

Mr. SESSIONS (for himself and Ms. SNOWE) introduced the following bill; 

which was read twice and referred to the Committee on the Budget 

A BILL 

To provide for greater transparency and honesty in the 

Federal budget process. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Honest Budget Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. No budget—no appropriations. 

Sec. 3. No phony emergency designations. 

Sec. 4. Strengthen the Federal Credit Reform Act of 1990. 

Sec. 5. No changes in mandatory programs in appropriation bills. 

Sec. 6. Don’t count rescissions that don’t save money. 

Sec. 7. Prohibition on step increases for Federal employee compensation. 


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Sec. 8. Point of order against advance appropriations. 

Sec. 9. Prohibit timing shifts. 

Sec. 10. Budget scoring rule relating to transfers from the general fund of the 

Treasury to the Highway Trust Fund that increase public indebtedness. 

1 SEC. 2. NO BUDGET—NO APPROPRIATIONS. 

2 Section 904 of the Congressional Budget Act of 1974 

3 (2 U.S.C. 621 note) is amended— 

4 (1) in subsection (c)(1), by inserting after ‘‘Sec5 tions’’ the following: ‘‘303(c),’’; and 

6 (2) in subsection (d)(2), by inserting after ‘‘sec7 tions’’ the following: ‘‘303(c),’’. 

8 SEC. 3. NO PHONY EMERGENCY DESIGNATIONS. 

9 (a) EMERGENCY REQUIREMENT IN A BILL, JOINT

10 RESOLUTION, OR CONFERENCE REPORT.— 

11 (1) IN GENERAL.—In the Senate, it shall not be 

12 in order to consider any bill, joint resolution, or con13 ference report that designates as an emergency re14 quirement, pursuant to section 403 of S. Con. Res. 

15 13 (110th Congress, the FY 2010 Budget Resolu16 tion), section 4(g) of the Statutory Pay-As-You-Go 

17 Act of 2010, or section 251(b)(2)(A)(i) of the Bal18 anced Budget and Emergency Deficit Control Act of 

19 1985 any provision that creates discretionary or di20 rect spending or decreases revenues. 

21 (2) WAIVER.—An affirmative vote of three22 fifths of the Members, duly chosen and sworn, shall 

23 be required to sustain an appeal of the ruling of the 


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1 Chair on a point of order against such a measure 

2 raised under this subsection. 

3 (3) EXCEPTION.—For purposes of this sub4 section, a conference report may include an emer5 gency designation only if it was also adopted in the 

6 Senate version of the measure subject to the con7 ference report. 

8 (b) EMERGENCY REQUIREMENT IN AN AMEND9 MENT.— 

10 (1) IN GENERAL.—In the Senate, it shall not be 

11 in order to consider any bill, joint resolution, or con12 ference report that designates as an emergency re13 quirement, pursuant to section 403 of S. Con. Res. 

14 13 (110th Congress, the FY 2010 Budget Resolu15 tion), section 4(g) of the Statutory Pay-As-You-Go 

16 Act of 2010, or section 251(b)(2)(A)(i) of the Bal17 anced Budget and Emergency Deficit Control Act of 

18 1985 any provision that creates discretionary or di19 rect spending or decreases revenues. 

20 (2) WAIVER AND APPEAL.—A point of order 

21 against an amendment under this subsection may be 

22 waived or suspended only by an affirmative vote of 

23 three-fifths of the Members, duly chosen and sworn. 

24 An affirmative vote of three-fifths of the Members, 

25 duly chosen and sworn, shall be required to sustain 


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1 an appeal of the ruling of the Chair on a point of 

2 order against such an amendment raised under this 

3 subsection. 

4 (c) CHANGES TO THE STATUTORY PAY-AS-YOU-GO

5 ACT OF 2010.—Section 4(g) of the Statutory Pay-As-You6 Go Act of 2010 is amended by striking paragraph (3) and 

7 inserting the following: 

8 ‘‘(3) DESIGNATION IN THE SENATE.—A provi9 sion or provisions designated as an emergency re10 quirement pursuant to this section are subject to 

11 section 3 of the Honest Budget Act.’’. 

12 SEC. 4. STRENGTHEN THE FEDERAL CREDIT REFORM ACT 

13 OF 1990. 

14 Title V of the Congressional Budget Act of 1990 is 

15 amended to read as follows: 

16 ‘‘TITLE V—CREDIT REFORM 

17 ‘‘SEC. 500. SHORT TITLE. 

18 ‘‘This title may be cited as the ‘Federal Credit Re19 form Act of 1990’. 

20 ‘‘SEC. 501. PURPOSES. 

21 ‘‘The purposes of this title are to— 

22 ‘‘(1) measure more accurately the costs of Fed23 eral credit programs and financial investments by 

24 accounting for them on a fair value basis; 


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1 ‘‘(2) place the cost of credit programs and fi2 nancial investments on a budgetary basis equivalent 

3 to other Federal spending; 

4 ‘‘(3) encourage the delivery of benefits in the 

5 form most appropriate to the needs of beneficiaries; 

6 and 

7 ‘‘(4) improve the allocation of resources among 

8 Federal programs. 

9 ‘‘SEC. 502. DEFINITIONS. 

10 ‘‘For purposes of this title: 

11 ‘‘(1) The term ‘direct loan’ means a disburse12 ment of funds by the Government to a non-Federal 

13 borrower under a contract that requires the repay14 ment of such funds with or without interest. The 

15 term includes the purchase of, or participation in, a 

16 loan made by another lender and financing arrange17 ments that defer payment for more than 90 days, in18 cluding the sale of a Government asset on credit 

19 terms. The term does not include the acquisition of 

20 a federally guaranteed loan in satisfaction of default 

21 claims or the price support loans of the Commodity 

22 Credit Corporation. 

23 ‘‘(2) The term ‘direct loan obligation’ means a 

24 binding agreement by a Federal agency to make a 


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1 direct loan when specified conditions are fulfilled by 

2 the borrower. 

3 ‘‘(3) The term ‘loan guarantee’ means any 

4 guarantee, insurance, or other pledge with respect to 

5 the payment of all or a part of the principal or inter6 est on any debt obligation of a non-Federal borrower 

7 to a non-Federal lender, but does not include the in8 surance of deposits, shares, or other withdrawable 

9 accounts in financial institutions. 

10 ‘‘(4) The term ‘loan guarantee commitment’ 

11 means a binding agreement by a Federal agency to 

12 make a loan guarantee when specified conditions are 

13 fulfilled by the borrower, the lender, or any other 

14 party to the guarantee agreement. 

15 ‘‘(5)(A) The term ‘financial investment’ means 

16 an investment by the Government in any securities 

17 (debt or equity), stocks, bonds, or futures, options, 

18 swaps, or other derivatives, issued by a non-Federal 

19 entity, including State, local tribal, and foreign gov20 ernments, and private organizations, regardless of 

21 whether the issuances are federally guaranteed, or 

22 issued by a Federal entity if the issuance consists of 

23 marketable securities. 

24 ‘‘(B) The term includes Government invest25 ments in money market and mutual funds, even if 


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1 the money market or mutual fund’s assets consist 

2 entirely of Federal securities. 

3 ‘‘(6) The term ‘financial investment commit4 ment’ means a binding agreement by a Federal 

5 agency to acquire a financial investment when speci6 fied conditions are fulfilled by other party to the in7 vestment agreement. 

8 ‘‘(7)(A) The term ‘cost’ means the sum of the 

9 Treasury discounting component and the risk com10 ponent of a direct loan, loan guarantee, or financial 

11 investment or a modification thereof. 

12 ‘‘(B) The Treasury discounting component shall 

13 be the estimated long-term cost to the Government 

14 of a direct loan, loan guarantee, or financial invest15 ment or modification thereof, calculated on a net 

16 present value basis, excluding administrative costs 

17 and any incidental effects on governmental receipts 

18 or outlays. 

19 ‘‘(C) The risk component shall be an amount 

20 equal to the difference between— 

21 ‘‘(i) the estimated long-term cost to the 

22 Government of a direct loan, loan guarantee, or 

23 financial investment or modification thereof, es24 timated on a fair value basis, applying the 

25 guidelines set forth by the Financial Accounting 


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1 Standards Board in Financial Accounting 

2 Standards #157, or a successor thereto, exclud3 ing administrative costs and any incidental ef4 fects on governmental receipts or outlays; and 

5 ‘‘(ii) the Treasury discounting component 

6 of such direct loan, loan guarantee, or financial 

7 investment or modification thereof. 

8 ‘‘(D) The Treasury discounting component of a 

9 direct loan shall be the net present value, at the time 

10 when the direct loan is disbursed, of the following 

11 estimated cash flows: 

12 ‘‘(i) Loan disbursements. 

13 ‘‘(ii) Repayments of principal. 

14 ‘‘(iii) Essential preservation expenses, pay15 ments of interest and other payments by or to 

16 the Government over the life of the loan after 

17 adjusting for estimated defaults, prepayments, 

18 fees, penalties, and other recoveries, including 

19 the effects of changes in loan terms resulting 

20 from the exercise by the borrower of an option 

21 included in the loan contract. 

22 ‘‘(E) The Treasury discounting component of a 

23 loan guarantee shall be the net present value, at the 

24 time when the direct loan is disbursed, of the fol25 lowing estimated cash flows: 


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1 ‘‘(i) Payments by the Government to cover 

2 defaults and delinquencies, interests subsidies, 

3 essential preservation expenses, or other pay4 ments. 

5 ‘‘(ii) Payments to the Government includ6 ing origination and other fees, penalties, and re7 coveries, including the effects of changes in loan 

8 terms resulting from the exercise by the guar9 anteed lender of an option included in the loan 

10 guarantee contract, or by the borrower of an 

11 option included in the guaranteed loan contract. 

12 ‘‘(F) The Treasury discounting component of a 

13 financial investment shall be the net present value, 

14 at the time the financial investment is executed, of 

15 the following estimated cash flows: 

16 ‘‘(i) Payments by the Government includ17 ing essential preservation expenses. 

18 ‘‘(ii) Payments to the Government includ19 ing any dividends, periodic payments, fees, pen20 alties, or recoveries; 

21 Including the effects of changes in investment terms 

22 resulting from the exercise by the non-Federal entity 

23 of an option included in the investment contract. 

24 ‘‘(G) The cost of a modification is the sum of— 


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1 ‘‘(i) the difference between the current es2 timate of the Treasury discounting component 

3 of the remaining cash flows under the terms of 

4 a direct loan, loan guarantee, or financial in5 vestment contract, and the current estimate of 

6 the Treasury discounting component of the re7 maining cash flows under the terms of the con8 tract, as modified; and 

9 ‘‘(ii) the difference between the current es10 timate of the risk component of the remaining 

11 cash flows under the terms of a direct loan, 

12 loan guarantee, or financial investment con13 tract, and the current estimate of the risk com14 ponent of the remaining cash flows under the 

15 terms of the contract as modified. 

16 ‘‘(H) In estimating Treasury discounting com17 ponents, the discount rate shall be the average inter18 est rate on marketable Treasury securities of similar 

19 duration to the cash flows of the direct loan or loan 

20 guarantee for which the estimate is being made. 

21 ‘‘(I) When funds are obligated for a direct loan 

22 or loan guarantee, the estimated cost shall be based 

23 on the current assumptions, adjusted to incorporate 

24 the terms of the loan contract, for the fiscal year in 

25 which the funds are obligated. 


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1 ‘‘(8) The term ‘program account’ means the 

2 budget account into which an appropriation to cover 

3 the cost of a direct loan, loan guarantee, or financial 

4 investment program is made and from which such 

5 cost is disbursed to the financing account. 

6 ‘‘(9) The term ‘financing account’ means the 

7 nonbudget account or accounts associated with each 

8 program account which holds balances, receives the 

9 cost payment from the program account, and also 

10 includes all other cash flows to and from the Gov11 ernment resulting from direct loan obligations or 

12 loan guarantee commitments made on or after Octo13 ber 1, 1991, or financial investment commitments 

14 made on or after October 1, 2014. 

15 ‘‘(10) The term ‘liquidating account’ means the 

16 budget account that includes all cash flows to and 

17 from the Government resulting from direct loan obli18 gations or loan guarantee commitments made prior 

19 to October 1, 1991. These accounts shall be shown 

20 in the budget on a cash basis. 

21 ‘‘(11) The term ‘modification’ means any Gov22 ernment action that alters the estimated cost of an 

23 outstanding direct loan (or direct loan obligation), 

24 an outstanding loan guarantee (or loan guarantee 

25 commitment), or outstanding financial investment 


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1 (or financial investment commitment) from the cur2 rent estimate of cash flows. This includes the sale of 

3 loan assets, with or without recourse, and the pur4 chase of guaranteed loans (or direct loan obliga5 tions), loan guarantees (or loan guarantee commit6 ments), financial investments (or financial invest7 ment commitments) such as a change in collection 

8 procedures. 

9 ‘‘(12) The term ‘current’ has the same meaning 

10 as in section 250(c)(9) of the Balanced Budget and 

11 Emergency Deficit Control Act of 1985. 

12 ‘‘(13) The term ‘Director’ means the Director 

13 of the Office of Management and Budget. 

14 ‘‘(14) The term ‘administrative costs’ means 

15 costs related to program management activities, but 

16 does not include essential preservation expenses. 

17 ‘‘(15) The term ‘essential preservation ex18 penses’ means servicing and other costs that are es19 sential to preserve the value of loan assets or collat20 eral. 

21 ‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 

22 REVIEW. 

23 ‘‘(a) IN GENERAL.—For the executive branch, the 

24 Director shall be responsible for coordinating the esti25 mates required by this title. The Director shall consult 


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1 with the agencies that administer direct loan or loan guar2 antee, or financial investment programs. 

3 ‘‘(b) DELEGATION.—The Director may delegate to 

4 agencies authority to make estimates of costs. The delega5 tion of authority shall be based upon written guidelines, 

6 regulations, or criteria consistent with the definitions in 

7 this title. 

8 ‘‘(c) COORDINATION WITH THE CONGRESSIONAL

9 BUDGET OFFICE.—In developing estimation guidelines, 

10 regulations, or criteria to be used by Federal agencies, the 

11 Director shall consult with the Director of the Congres12 sional Budget Office. 

13 ‘‘(d) IMPROVING COST ESTIMATES.—The Director 

14 and the Director of the Congressional Budget Office shall 

15 coordinate the development of more accurate data on his16 torical performance and prospective risk of direct loan, 

17 loan guarantee, and financial investment programs. They 

18 shall annually review the performance of outstanding di19 rect loans, loan guarantees, and financial investment to 

20 improve estimates of costs. The Office of Management and 

21 Budget and the Congressional Budget Office shall have 

22 access to all agency data that may facilitate the develop23 ment and improvement of estimates of costs. 

24 ‘‘(e) HISTORICAL CREDIT PROGRAMS COSTS.—The 

25 Director shall review, to the extent possible, historical data 


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1 and develop the best possible estimates of adjustments 

2 that would convert aggregate historical budget data to 

3 credit reform accounting. 

4 ‘‘SEC. 504. BUDGETARY TREATMENT. 

5 ‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 

6 year 1992, the President’s budget shall reflect the Treas7 ury discounting component of direct loan and loan guar8 antee programs. Beginning with fiscal year 2015, the 

9 President’s budget shall reflect the costs of direct loan, 

10 loan guarantee, and financial investment programs. The 

11 budget shall also include the planned level of new direct 

12 loan obligations, loan guarantee commitments, or financial 

13 investment commitments associated with each appropria14 tions request. 

15 ‘‘(b) APPROPRIATIONS REQUIRED.—Notwithstanding 

16 any other provision of law, new direct loan obligations may 

17 be incurred and new loan guarantee commitments may be 

18 made of fiscal year 1992 and thereafter and new financial 

19 investment commitments may be made for fiscal year 

20 2015 and thereafter only to the extent that— 

21 ‘‘(1) new budget authority to cover their costs 

22 is provided in advance in an appropriations Act; 

23 ‘‘(2) a limitation on the use of funds otherwise 

24 available for the cost of a direct loan, loan guarVerDate Mar 15 2010 03:31 Oct 05, 2011 Jkt 019200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1651.IS S1651

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1 antee, or financial investment program has been pro2 vided in advance in an appropriations Act; or 

3 ‘‘(3) authority is otherwise provided in appro4 priation Acts. 

5 ‘‘(c) EXEMPTION FOR MANDATORY PROGRAMS.— 

6 Subsections (b) and (e) shall not apply to a direct loan 

7 or loan guarantee program that— 

8 ‘‘(1) constitutes an entitlement (such as the 

9 guaranteed student loan program or the veteran’s 

10 home loan guaranty program); or 

11 ‘‘(2) all existing credit programs of the Com12 modity Credit Corporation on the date of enactment 

13 of this title. 

14 ‘‘(d) BUDGET ACCOUNTING.— 

15 ‘‘(1) The authority to incur new direct loan ob16 ligations, make new loan guarantee commitments, 

17 make new financial investment commitments, or 

18 modify outstanding direct loans (or direct loan obli19 gations), loan guarantees (or loan guarantee com20 mitments), financial investments (or financial invest21 ment commitments) shall constitute new budget au22 thority in an amount equal to the cost of the direct 

23 loan or loan guarantee in the fiscal year in which 

24 definite authority becomes available or indefinite au25 thority is used. Such budget authority shall conVerDate Mar 15 2010 02:36 Oct 05, 2011 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S1651.IS S1651

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1 stitute an obligation of the program account to pay 

2 to the financing account. 

3 ‘‘(2) The outlays resulting from new budget au4 thority for the cost of direct loans, loan guarantees, 

5 or financial investment described in paragraph (1) 

6 shall be paid from the program account into the fi7 nancing account and recorded in the fiscal year in 

8 which the direct loan, the guaranteed loan, or finan9 cial investment is disbursed or its costs altered. 

10 ‘‘(3) All collections and payments of the financ11 ing accounts shall be a means of financing. 

12 ‘‘(e) MODIFICATIONS.—An outstanding direct loan 

13 (or direct loan obligation), loan guarantee (or loan guar14 antee commitment), or financial investment (or financial 

15 investment commitment) shall not be modified in a man16 ner that increases its costs unless budget authority for the 

17 additional cost has been provided in advance in an appro18 priations Act. 

19 ‘‘(f) RE-ESTIMATES.—When the estimated cost for a 

20 group of direct loans, loan guarantees, or financial invest21 ments for a given program made in a single fiscal year 

22 is re-estimated in a subsequent year, the difference be23 tween the re-estimated cost and the previous cost estimate 

24 shall be displayed as a distinct and separately identified 

25 subaccount in the program account as a change in proVerDate Mar 15 2010 02:36 Oct 05, 2011 Jkt 019200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1651.IS S1651

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1 gram costs and a change in net interest. There is hereby 

2 provided permanent indefinite authority for these re-esti3 mates. 

4 ‘‘(g) ADMINISTRATIVE EXPENSES.—All funding for 

5 an agency’s administrative costs associated with a direct 

6 loan, loan guarantee, or financial investment program 

7 shall be displayed as distinct and separately identified sub8 accounts within the same budget account as the program’s 

9 cost. 

10 ‘‘SEC. 505. AUTHORIZATIONS. 

11 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS FOR

12 COSTS.—There are authorized to be appropriated to each 

13 Federal agency authorized to make direct loan obligations, 

14 loan guarantee commitments, or financial investment com15 mitments such sums as may be necessary to pay the cost 

16 associated with such direct loan obligations, loan guar17 antee commitments, or financial investment commitments. 

18 ‘‘(b) AUTHORIZATION FOR FINANCING ACCOUNTS.— 

19 In order to implement the accounting required by this 

20 title, the President is authorized to establish such non21 budgetary accounts as may be appropriate. 

22 ‘‘(c) TREASURY TRANSACTIONS WITH THE FINANC23 ING ACCOUNTS.— 

24 ‘‘(1) IN GENERAL.—The Secretary of the 

25 Treasury shall borrow from, receive from, lend to, or 


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1 pay to the financing accounts such amounts as may 

2 be appropriate. The Secretary of the Treasury may 

3 prescribe forms and denominations, maturities, and 

4 terms and conditions for the transactions described 

5 in the preceding sentence, except that the rate of in6 terest charged by the Secretary on lending to financ7 ing accounts (including amounts treated as lending 

8 to financing accounts by the Federal Financing 

9 Bank (hereinafter in this subsection referred to as 

10 the ‘Bank’) pursuant to section 405(b)) and the rate 

11 of interest paid to financing accounts on uninvested 

12 balances in financing accounts shall be the same as 

13 the rate determined pursuant to section 502(7)(H). 

14 ‘‘(2) LOANS.—For guaranteed loans financed 

15 by the Bank and treated as direct loans by a Fed16 eral agency pursuant to section 406(b)(1), any fee 

17 or interest surcharge (the amount by which the in18 terest rate charged exceeds the rate determined pur19 suant to section 502(7)(H) that the Bank charges to 

20 a private borrower pursuant to section 6(c) of the 

21 Federal Financing Bank Act of 1973 shall be con22 sidered a cash flow to the Government for the pur23 poses of determining the cost of the direct loan pur24 suant to section 502(7). All such amounts shall be 

25 credited to the appropriate financing account. 


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1 ‘‘(3) REIMBURSEMENT.—The Bank is author2 ized to require reimbursement from a Federal agen3 cy to cover the administrative expenses of the Bank 

4 that are attributable to the direct loans financed for 

5 that agency. All such payments by an agency shall 

6 be considered administrative expenses subject to sec7 tion 504(g). This subsection shall apply to trans8 actions related to direct loan obligations or loan 

9 guarantee commitments made on or after October 1, 

10 1991. 

11 ‘‘(4) AUTHORITY.—The authorities provided in 

12 this subsection shall not be construed to supersede 

13 or override the authority of the head of a Federal 

14 agency to administer and operate a direct loan or 

15 loan guarantee program. 

16 ‘‘(5) TITLE 31.—All of the transactions pro17 vided in the subsection shall be subject to the provi18 sions of subchapter II of chapter 15 of title 31, 

19 United States Code. 

20 ‘‘(6) TREATMENT OF CASH BALANCES.—Cash 

21 balances of the financing accounts in excess of cur22 rent requirements shall be maintained in a form of 

23 uninvested funds and the Secretary of the Treasury 

24 shall pay interest on these funds. The Secretary of 

25 the Treasury shall charge (or pay if the amount is 


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1 negative) financing accounts an amount equal to the 

2 risk component for a direct loan, loan guarantee, or 

3 financial investment or modification thereof. Such 

4 amount received by the Secretary of the Treasury 

5 shall be a means of financing and shall not be con6 sidered a cash flow of the Government for the pur7 poses of section 502(7). 

8 ‘‘(d) AUTHORIZATION FOR LIQUIDATING AC9 COUNTS.—(1) Amounts in liquidating accounts shall be 

10 available only for payments resulting from direct loan obli11 gations or loan guarantee commitments made prior to Oc12 tober 1, 1991, for— 

13 ‘‘(A) interest payments and principal repay14 ments to the Treasury or the Federal Financing 

15 Bank for amounts borrowed; 

16 ‘‘(B) disbursements of loans; 

17 ‘‘(C) default and other guarantee claim pay18 ments; 

19 ‘‘(D) interest supplement payments; 

20 ‘‘(E) payments for the costs of foreclosing, 

21 managing, and selling collateral that are capitalized 

22 or routinely deducted from the proceeds of sales; 

23 ‘‘(F) payments to financing accounts when re24 quired for modifications; 


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1 ‘‘(G) administrative costs and essential preser2 vation expenses, if— 

3 ‘‘(i) amounts credited to the liquidating ac4 count would have been available for Administra5 tive costs and essential preservation expenses 

6 under a provision of law in effect prior to Octo7 ber 1, 1991; and 

8 ‘‘(ii) no direct loan obligation or loan guar9 antee commitment has been made, or any modi10 fication of a direct loan or loan guarantee has 

11 been made, since September 30, 1991; or 

12 ‘‘(H) such other payments as are necessary for 

13 the liquidation of such direct loan obligations and 

14 loan guarantee commitments. 

15 ‘‘(2) Amounts credited to liquidating accounts in any 

16 year shall be available only for payments required in that 

17 year. Any unobligated balances in liquidating accounts at 

18 the end of a fiscal year shall be transferred to miscella19 neous receipts as soon as practicable after the end of the 

20 fiscal year. 

21 ‘‘(3) If funds in liquidating accounts are insufficient 

22 to satisfy obligations and commitments of such accounts, 

23 there is hereby provided permanent, indefinite authority 

24 to make any payments required to be made on such obliga25 tions and commitments. 


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1 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS FOR IM2 PLEMENTATION EXPENSES.—There are authorized to be 

3 appropriated to existing accounts such sums as may be 

4 necessary for salaries and expenses to carry out the re5 sponsibilities under this title. 

6 ‘‘(f) REINSURANCE.—Nothing in this title shall be 

7 construed as authorizing or requiring the purchase of in8 surance or reinsurance on a direct loan or loan guarantee 

9 from private insurers. If any such reinsurance for a direct 

10 loan or loan guarantee is authorized, the cost of such in11 surance and any recoveries to the Government shall be in12 cluded in the calculation of the cost. 

13 ‘‘(g) ELIGIBILITY AND ASSISTANCE.—Nothing in this 

14 title shall be construed to change the authority or the re15 sponsibility of a Federal agency to determine the terms 

16 and conditions of eligibility for, or the amount of assist17 ance provided by a direct loan or a loan guarantee. 

18 ‘‘SEC. 506. TREATMENT OF DEPOSIT INSURANCE AND AGEN19 CIES AND OTHER INSURANCE PROGRAMS. 

20 ‘‘This title shall not apply to the credit or insurance 

21 activities of the Federal Deposit Insurance Corporation, 

22 National Credit Union Administration, Resolution Trust 

23 Corporation, Pension Benefit Guaranty Corporation, Na24 tional Flood Insurance, National Insurance Development 

25 Fund, Crop Insurance, or Tennessee Valley Authority. 


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1 ‘‘SEC. 507. EFFECT ON OTHER LAWS. 

2 ‘‘(a) EFFECT ON OTHER LAWS.—This title shall su3 persede, modify, or repeal any provision of law enacted 

4 prior to the date of enactment of this title to the extent 

5 such provision is inconsistent with this title. Nothing in 

6 this title shall be construed to establish a credit limitation 

7 on any Federal loan or loan guarantee program. 

8 ‘‘(b) CREDITING OF COLLECTIONS.—Collections re9 sulting from direct loans obligated or loan guarantees 

10 committed prior to October 1, 1991, shall be credited to 

11 the liquidating accounts of Federal agencies. Amounts so 

12 credited shall be available, to the same extent that they 

13 were available prior to the date of enactment of this title, 

14 to liquidate obligations arising from such direct loans obli15 gated or loan guarantees committed prior to October 1, 

16 1991, including repayment of any obligations held by the 

17 Secretary of the Treasury or the Federal Financing Bank. 

18 The unobligated balances of such accounts that are in ex19 cess of current needs shall be transferred to the general 

20 fund of the Treasury. Such transfers shall be made from 

21 time to time but, at least once each year.’’. 

22 SEC. 5. NO CHANGES IN MANDATORY PROGRAMS IN AP23 PROPRIATION BILLS. 

24 Section 302(f)(2) of the Congressional Budget Act of 

25 1974 is amended to read as follows: 


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1 ‘‘(2) IN THE SENATE.—After a concurrent reso2 lution on the budget is agreed to, it shall not be in 

3 order in the Senate to consider any bill or joint reso4 lution, amendment, motion, or conference report 

5 that— 

6 ‘‘(A)(i) in the case of any committee except 

7 the Committee on Appropriations, would cause 

8 the applicable allocation of new budget author9 ity or outlays under subsection (a) for the first 

10 fiscal year or the total of fiscal years to be ex11 ceeded; or 

12 ‘‘(ii) in the case of the Committee on Ap13 propriations would cause the applicable sub14 allocation of new budget authority or outlays 

15 under subsection (b) to be exceeded; or 

16 ‘‘(B) includes one or more provisions that 

17 would have been estimated as affecting direct 

18 spending or receipts under section 252 of the 

19 Balanced Budget and Emergency Deficit Con20 trol Act of 1985 were they included in legisla21 tion other than appropriations legislation, if 

22 such provision does not result in net outlay sav23 ings over the total of the period of the current 

24 year, the budget year, and all fiscal years covVerDate Mar 15 2010 02:36 Oct 05, 2011 Jkt 019200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S1651.IS S1651

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1 ered under the most recently adopted concur2 rent resolution on the budget.’’. 

3 SEC. 6. DON’T COUNT RESCISSIONS THAT DON’T SAVE 

4 MONEY. 

5 Section 312(a) of the Congressional Budget Act of 

6 1974 (2 U.S.C. 643(a)) is amended— 

7 (1) by striking ‘‘For purposes’’ and inserting 

8 the following: 

9 ‘‘(1) IN GENERAL.—For purposes;’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(2) EXCLUSION.—In making determinations 

12 under paragraph (1), the committee shall not count 

13 rescissions of budget authority that do not result in 

14 outlay savings over the period of fiscal years covered 

15 by the concurrent resolution on the budget.’’. 

16 SEC. 7. PROHIBITION ON STEP INCREASES FOR FEDERAL 

17 EMPLOYEE COMPENSATION. 

18 (a) PERIODIC STEP INCREASES.—Notwithstanding 

19 any other provision of law, no periodic step increase under 

20 section 5335 of title 5, United States Code, which (but 

21 for this subsection) would otherwise take effect during the 

22 period beginning on the date of enactment of this Act and 

23 ending on December 31, 2012, shall be made. 

24 (b) ADDITIONAL STEP INCREASES.—The head of an 

25 agency may not grant additional step increases under secVerDate Mar 15 2010 02:36 Oct 05, 2011 Jkt 019200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1651.IS S1651

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1 tion 5336 of title 5, United States Code, during the period 

2 beginning on the date of enactment of this Act and ending 

3 on December 31, 2012. 

4 SEC. 8. POINT OF ORDER AGAINST ADVANCE APPROPRIA5 TIONS. 

6 (a) IN GENERAL.— 

7 (1) POINT OF ORDER.—Except as provided in 

8 subsection (b), it shall not be in order in the Senate 

9 to consider any bill, joint resolution, motion, amend10 ment, or conference report that would provide an ad11 vance appropriation. 

12 (2) DEFINITION.—In this section, the term 

13 ‘‘advance appropriation’’ means any new budget au14 thority provided in a bill or joint resolution making 

15 appropriations for fiscal year 2012 that first be16 comes available for any fiscal year after 2012, or 

17 any new budget authority provided in a bill or joint 

18 resolution making general appropriations or con19 tinuing appropriations for each of the budget years 

20 2012 through 2022, that first becomes available for 

21 any fiscal year after the budget year. 

22 (b) EXCEPTIONS.—Advance appropriations may be 

23 provided as follows: 

24 (1) For fiscal years 2013 through 2022 in an 

25 aggregate amount not to exceed $28,852,000,000 in 


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1 new budget authority in each year for the following 

2 programs, projects, activities, or accounts: 

3 (A) Employment and Training Administra4 tion. 

5 (B) Job Corps. 

6 (C) Education for the Disadvantaged. 

7 (D) School Improvement. 

8 (E) Children and Family Services (Head 

9 Start). 

10 (F) Special Education. 

11 (G) Career, Technical, and Adult Edu12 cation. 

13 (H) Financial Services and General Gov14 ernment: Payment to Postal Service. 

15 (I) Transportation, Housing and Urban 

16 Development: Tenant-based Rental Assistance 

17 Project-based Rental Assistance. 

18 (2) For the Corporation for Public Broad19 casting. 

20 (3) For the Department of Veterans Affairs for 

21 the Medical Services, Medical Support and Compli22 ance, and Medical Facilities accounts of the Vet23 erans Health Administration. 

24 (c) SUPERMAJORITY WAIVER AND APPEAL.— 


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1 (1) WAIVER.—In the Senate, subsection (a)(1) 

2 may be waived or suspended only by an affirmative 

3 vote of three-fifths of the Members, duly chosen and 

4 sworn. 

5 (2) APPEAL.—An affirmative vote of three6 fifths of the Members of the Senate, duly chosen and 

7 sworn, shall be required to sustain an appeal of the 

8 ruling of the Chair on a point of order raised under 

9 subsection (a). 

10 (d) FORM OF POINT OF ORDER.—A point of order 

11 under subsection (a) may be raised by a Senator as pro12 vided in section 313(e) of the Congressional Budget Act 

13 of 1974. 

14 (e) CONFERENCE REPORTS.—When the Senate is 

15 considering a conference report on, or an amendment be16 tween the Houses in relation to, a bill, upon a point of 

17 order being made by any Senator pursuant to this section, 

18 and such point of order being sustained, such material 

19 contained in such conference report shall be deemed 

20 stricken, and the Senate shall proceed to consider the 

21 question of whether the Senate shall recede from its 

22 amendment and concur with a further amendment, or con23 cur in the House amendment with a further amendment, 

24 as the case may be, which further amendment shall consist 

25 of only that portion of the conference report or House 


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1 amendment, as the case may be, not so stricken. Any such 

2 motion in the Senate shall be debatable. In any case in 

3 which such point of order is sustained against a conference 

4 report (or Senate amendment derived from such con5 ference report by operation of this subsection), no further 

6 amendment shall be in order. 

7 SEC. 9. PROHIBIT TIMING SHIFTS. 

8 In the Senate, for purposes of enforcement of points 

9 of order established under the Congressional Budget Act 

10 of 1974, S. Con. Res. 21 (110th Congress; Fiscal Year 

11 2008 Budget Resolution), S. Con. Res. 70 (110th Con12 gress; Fiscal Year 2009 Budget Resolution), S. Con. Res. 

13 (111th Congress; Fiscal Year 2010 Budget Resolution), 

14 and subsequent concurrent resolutions on the budget, a 

15 provision in any bill, resolution, amendment, motion, 

16 amendment between houses, or conference report that 

17 shifts outlays or revenues from one year to another by a 

18 date change to act as an offset for other provisions that 

19 increase the deficit for a time period, shall not count. 

20 SEC. 10. BUDGET SCORING RULE RELATING TO TRANSFERS 

21 FROM THE GENERAL FUND OF THE TREAS22 URY TO THE HIGHWAY TRUST FUND THAT IN23 CREASE PUBLIC INDEBTEDNESS. 

24 In the Senate, for purposes of enforcement of points 

25 of order established under the Congressional Budget Act 


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1 of 1974, S. Con. Res. 21 (110th Congress; Fiscal Year 

2 2008 Budget Resolution), S. Con. Res. 70 (110th Con3 gress; Fiscal Year 2009 Budget Resolution), S. Con. Res. 

4 13 (111th Congress; Fiscal Year 2010 Budget Resolu5 tion), and subsequent concurrent resolutions on the budg6 et, a bill, resolution, amendment, motion, amendment be7 tween houses, or conference report that transfers funds 

8 from the general fund of the Treasury to the Highway 

9 Trust Fund and that increases the level of indebtedness 

10 that is subject to the current applicable statutory public 

11 debt limit shall be counted by the Chairman of the Senate 

12 Committee on the Budget as new budget authority and 

13 outlays equal to the amount of the transfer in the fiscal 

14 year the transfer occurs. 

Æ 


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