I

103D CONGRESS

1ST SESSION H. R. 883

To require a balanced Federal budget by fiscal year 2000 and each year

thereafter, to protect Social Security, to provide for zero-based budgeting

and decennial sunsetting, to impose spending caps on the growth of

entitlements during fiscal years 1994 through 2000, and to enforce

those requirements through a budget process involving the President

and Congress and sequestration.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 16, 1993

Mr. ARMEY (for himself, Mr. KASICH, Mr. MCCOLLUM, and Mr. HORN) introduced the following bill; which was referred jointly to the Committees on

Government Operations and Rules

A BILL

To require a balanced Federal budget by fiscal year 2000

and each year thereafter, to protect Social Security, to

provide for zero-based budgeting and decennial

sunsetting, to impose spending caps on the growth of

entitlements during fiscal years 1994 through 2000, and

to enforce those requirements through a budget process

involving the President and Congress and sequestration.

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

2 This Act may be cited as the ‘‘Balanced Budget Im3 plementation Act’’.

4 SEC. 2. EFFECTIVE DATES.

5 Except as otherwise specified, this Act and the

6 amendments made by it shall take effect on its date of

7 enactment and shall apply to fiscal year 1993 and subse8 quent fiscal years.

9 TITLE I—JOINT BUDGET

10 RESOLUTION

11 SEC. 101. JOINT BUDGET RESOLUTION.

12 (a) DEFINITIONS.—Paragraph (4) of section 3 of the

13 Congressional Budget Act of 1974 is amended to read as

14 follows:

15 ‘‘(4) the term ‘joint resolution on the budget’

16 means—

17 ‘‘(A) a joint resolution setting forth the

18 congressional budget for the United States Gov19 ernment for a fiscal year as provided in section

20 301; and

21 ‘‘(B) any other joint resolution revising the

22 congressional budget for the United States Gov23 ernment for a fiscal year as described in section

24 304.’’.
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1 (b) JOINT RESOLUTION ON THE BUDGET.—(1) Sec2 tion 300 is amended by striking ‘‘concurrent resolution’’

3 each place it appears and inserting ‘‘joint resolution’’.

4 (2) Section 301(a) of the Congressional Budget Act

5 of 1974 is amended by striking ‘‘concurrent resolution’’

6 each place it appears including in the caption and insert7 ing ‘‘joint resolution’’.

8 (3) Section 301(b) is amended by striking ‘‘concur9 rent resolution’’ each place it appears including in the cap10 tion and inserting ‘‘joint resolution’’.

11 (4) Section 301(c) is amended by striking ‘‘concur12 rent resolution’’ each place it appears and inserting ‘‘joint

13 resolution’’.

14 (5) Section 301(e) is amended by striking ‘‘concur15 rent resolution’’ each place it appears and inserting ‘‘joint

16 resolution’’.

17 (6) Section 301(f) is amended by striking ‘‘concur18 rent resolution’’ each place it appears and inserting ‘‘joint

19 resolution’’.

20 (7) Section 301(g) is amended by striking ‘‘concur21 rent resolution’’ each place it appears and inserting ‘‘joint

22 resolution’’.

23 (8) Section 301(h) is amended by striking ‘‘concur24 rent resolution’’ and inserting ‘‘joint resolution’’.
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1 (9) Section 301(i) is amended by striking ‘‘concur2 rent resolution’’ each place it appears and inserting ‘‘joint

3 resolution’’.

4 (10) The section heading of section 301 is amended

5 by striking ‘‘ANNUAL ADOPTION OF CONCURRENT’’

6 and inserting ‘‘ANNUAL ADOPTION OF JOINT’’.

7 (11) The table of contents set forth in section 1(b)

8 of the Congressional Budget and Impoundment Control

9 Act of 1974 is amended by striking ‘‘Annual adoption of

10 the concurrent’’ in the item relating to section 301 and

11 inserting ‘‘Annual adoption of the joint’’.

12 (12) Section 302 is amended by striking ‘‘concurrent

13 resolution’’ each place it appears and inserting ‘‘joint reso14 lution’’.

15 (13) Section 303, including the heading, is amended

16 by striking ‘‘concurrent resolution’’ each place it appears

17 and inserting ‘‘joint resolution’’.

18 (14) The table of contents set forth in section 1(b)

19 of the Congressional Budget and Impoundment Control

20 Act of 1974 is amended by striking ‘‘Concurrent’’ in the

21 item relating to section 303 and inserting ‘‘Joint’’.

22 (15) Section 304 is amended by striking ‘‘concurrent

23 resolution’’, including in the heading, each place it appears

24 and inserting ‘‘joint resolution’’.
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1 (16) The table of contents set forth in section 1(b)

2 of the Congressional Budget and Impoundment Control

3 Act of 1974 is amended by striking ‘‘Concurrent’’ in the

4 item relating to section 304 and inserting ‘‘Joint’’.

5 (17) Section 305 is amended by striking ‘‘concurrent

6 resolution’’, including in the heading, each place it appears

7 and inserting ‘‘joint resolution’’.

8 (18) Section 308 is amended by striking ‘‘concurrent

9 resolution’’ each place it appears and inserting ‘‘joint reso10 lution’’.

11 (19) Section 310 is amended by striking ‘‘concurrent

12 resolution’’ each place it appears and inserting ‘‘joint reso13 lution’’.

14 (20) Section 311 is amended by striking ‘‘concurrent

15 resolution’’ each place it appears and inserting ‘‘joint reso16 lution’’.

17 TITLE II—ZERO BASED BUDGET18 ING AND DECENNIAL

19 SUNSETTING

20 SEC. 201. REAUTHORIZATION OF DISCRETIONARY PRO21 GRAMS AND UNEARNED ENTITLEMENTS.

22 (a) FISCAL YEAR 1994.—Effective October 1, 1993,

23 spending authority for each unearned entitlement and

24 high-cost discretionary spending program is terminated
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1 unless such spending authority is reauthorized after the

2 date of enactment of this Act.

3 (b) FISCAL YEAR 1995.—Effective October 1, 1994,

4 spending authority for each discretionary spending pro5 gram (not including high-cost discretionary spending pro6 grams) is terminated unless such spending authority is re7 authorized after the date of enactment of this Act.

8 (c) DEFINITIONS.—For purposes of this title—

9 (1) the term ‘‘unearned entitlement’’ means an

10 entitlement not earned by service or paid for in total

11 or in part by assessments or contributions such as

12 Social Security, veterans’ benefits, retirement pro13 grams, and medicare; and

14 (2) the term ‘‘high-cost discretionary program’’

15 means the most expensive one-third of discretionary

16 program within each budget function account.

17 SEC. 202. POINT OF ORDER.

18 (a) IN GENERAL.—It shall not be in order in the

19 House of Representatives or the Senate to consider any

20 bill, joint resolution, amendment, or conference report that

21 includes any provision that appropriates funds unless such

22 appropriation has been previously authorized by law.

23 (b) WAIVER OR SUSPENSION.—This section may be

24 waived or suspended in the House of Representatives or
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1 the Senate only by the affirmative vote of three-fifths of

2 the Members, duly chosen and sworn.

3 SEC. 203. DECENNIAL SUNSETTING.

4 (a) FIRST DECENNIAL CENSUS YEAR.—Effective on

5 the first day of the fiscal year beginning in the first decen6 nial census year after the year 2000 and each 10 years

7 thereafter, the spending authority described in section

8 201(a) is terminated unless such spending authority is re9 authorized after the last date the spending authority was

10 required to be reauthorized under this title.

11 (b) FIRST DECENNIAL CENSUS YEAR.—Effective on

12 the first day of the fiscal year beginning in the year after

13 the first decennial census year after the year 2000 and

14 each 10 years thereafter, the spending authority described

15 in section 201(b) is terminated unless such spending au16 thority is reauthorized after the last date the spending au17 thority was required to be reauthorized under this title.

18 TITLE III—SPENDING CAPS ON

19 THE GROWTH OF ENTITLE20 MENTS FOR FISCAL YEARS

21 1994 THROUGH 2000

22 SEC. 301. SPENDING CAPS ON GROWTH OF ENTITLEMENTS

23 AND MANDATORIES.

24 (a) CAP ON GROWTH OF ENTITLEMENTS.—Effective

25 for each of the fiscal years 1994 through 2000, the total
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1 level of entitlement and mandatory spending, excluding

2 Social Security, shall not exceed the total level for the pre3 vious fiscal year increased by the consumer price index,

4 and the growth in eligible population.

5 (b) SEQUESTRATION.—Within 15 days after Con6 gress adjourns to end a session, and on the same day as

7 a sequestration (if any) under title IV (pursuant to the

8 amendments made by such title), there shall be a seques9 tration to reduce the amount of entitlement and manda10 tory spending for the fiscal year beginning in the year the

11 Congress adjourns by any amount necessary to reduce

12 such spending to the level set forth in subsection (a) un13 less that amount is less than $250,000,000.

14 (c) UNIFORM REDUCTIONS; LIMITATIONS.—The

15 amount required to be sequestered for the fiscal year

16 under subsection (a) shall be obtained from nonexempt di17 rect spending accounts by actions taken in the following

18 order:

19 (1) FIRST.—The reductions in the programs

20 specified in section 303(a) (National Wool Act and

21 special milk), section 303(b) (guaranteed student

22 loans), and section 303(c) (foster care and adoption

23 assistance) shall be made.

24 (2) SECOND.—Any additional reductions that

25 may be required shall be achieved by reducing each
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1 remaining nonexempt direct spending account by the

2 uniform percentage necessary to achieve those addi3 tional reductions, except that—

4 (A) the low-income programs specified in

5 section 303(d) shall not be reduced by more

6 than 1 percent;

7 (B) the retirement and veterans benefits

8 specified in section 303(e) shall not be reduced

9 by more than 2 percent in the manner specified

10 in that section; and

11 (C) the medicare programs shall not be re12 duced by more than 4 percent in the manner

13 specified in section 303(f).

14 The limitations set forth in subparagraphs (A), (B),

15 and (C) shall be applied iteratively, and after each

16 iteration the uniform percentage applicable to all

17 other programs under this paragraph shall be in18 creased (if necessary) to a level sufficient to achieve

19 the reductions required by this paragraph.

20 SEC. 302. EXEMPT PROGRAMS AND ACTIVITIES.

21 (a) DESCRIPTIONS AND LISTS.—Except as provided

22 in subsection (b), the following budget accounts or activi23 ties shall be exempt from sequestration—

24 (1) net interest;
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1 (2) all payments to trust funds from excise

2 taxes or other receipts or collections properly cred3 itable to those trust funds;

4 (3) all payments from one Federal direct spend5 ing budget account to another Federal budget ac6 count; and all intragovernmental funds including

7 those from which funding is derived primarily from

8 other Government accounts, except to the extent

9 that such funds are augmented by direct appropria10 tions for the fiscal year for which the order is in ef11 fect;

12 (4) activities resulting from private donations,

13 bequests, or voluntary contributions to the Govern14 ment;

15 (5) payments from any revolving fund or trust16 revolving fund (or similar activity) that provides de17 posit insurance or other Government insurance, Gov18 ernment guarantees, or any other form of contingent

19 liability, to the extent those payments result from

20 contractual or other legally binding commitments of

21 the Government at the time of any sequestration;

22 (6) credit liquidating and financing accounts;

23 (7) the following accounts, which largely fulfill

24 requirements of the Constitution or otherwise make

25 payments to which the Government is committed—
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1 Administration of Territories, Northern Mari2 ana Islands Covenant grants (14–0412–0–1–806);

3 Bureau of Indian Affairs, miscellaneous pay4 ments to Indians (14–2303–0–1–452);

5 Bureau of Indian Affairs, miscellaneous trust

6 funds, tribal trust funds (14–9973–0–7–999);

7 Claims, defense;

8 Claims, judgments, and relief act (20–1895–0–

9 1–806);

10 Compact of Free Association, economic assist11 ance pursuant to Public Law 99–658 (14–0415–0–

12 1–806);

13 Compensation of the President (11–0001–0–1–

14 802);

15 Customs Service, miscellaneous permanent ap16 propriations (20–9992–0–2–852);

17 Eastern Indian land claims settlement fund

18 (14–2202–0–1–806);

19 Farm Credit System Financial Assistance Cor20 poration, interest payments (20–1850–0–1–351);

21 Internal Revenue collections of Puerto Rico

22 (20–5737–0–2–852);

23 Panama Canal Commission, operating expenses

24 and capital outlay (95–5190–0–2–403);
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1 Payments of Vietnam and USS Pueblo pris2 oner-of-war claims (15–0104–0–1–153);

3 Payments to copyright owners (03–5175–0–2–

4 376);

5 Payments to the United States territories, fiscal

6 assistance (14–0418–0–1–801);

7 Payments to widows and heirs of deceased

8 Members of Congress (00–0215–0–1–801);

9 Salaries of Article III judges;

10 Soldier’s and Airmen’s Home, payment of

11 claims (84–8930–0–7–705);

12 Washington Metropolitan Area Transit Author13 ity, interest payments (46–0300–0–1–401).

14 (8) the following noncredit special, revolving, or

15 trust-revolving funds—

16 Coinage profit fund (20–5811–0–2–803);

17 Comptroller of the Currency;

18 Director of the Office of Thrift Supervision;

19 Exchange Stabilization Fund (20–4444–0–3–

20 155);

21 Federal Housing Finance Board;

22 Foreign Military Sales trust fund (11–82232–

23 0–7–155);

24 (9) Thrift Savings Fund;
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1 (10) appropriations for the District of Columbia

2 to the extent they are appropriations of locally

3 raised funds;

4 (11)(A) any amount paid as regular unemploy5 ment compensation by a State from its account in

6 the Unemployment Trust Fund (established by sec7 tion 904(a) of the Social Security Act);

8 (B) any advance made to a State from the Fed9 eral unemployment account (established by section

10 904(g) of such Act) under title XII of such Act and

11 any advance appropriated to the Federal unemploy12 ment account pursuant to section 1203 of such Act;

13 and

14 (C) any payment made from the Federal Em15 ployees Compensation Account (as established under

16 section 909 of such Act) for the purpose of carrying

17 out chapter 85 of title 5, United States Code, and

18 funds appropriated or transferred to or otherwise

19 deposited in such Account;

20 (12) the earned income tax credit (payments to

21 individuals pursuant to section 32 of the Internal

22 Revenue Code of 1986).

23 (b) FEDERAL ADMINISTRATIVE EXPENSES.—

24 (1) Notwithstanding any provision of law other

25 than paragraph (3), administrative expenses in-
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1 curred by the departments and agencies, including

2 independent agencies, of the Federal Government in

3 connection with any program, project, activity, or ac4 count shall be subject to reduction pursuant to any

5 sequestration order, without regard to any exemp6 tion, exception, limitation, or special rule otherwise

7 applicable with respect to such program, project, ac8 tivity, or account, and regardless of whether the pro9 gram, project, activity, or account is self-supporting

10 and does not receive appropriations.

11 (2) Payments made by the Federal Government

12 to reimburse or match administrative costs incurred

13 by a State or political subdivision under or in con14 nection with any program, project, activity, or ac15 count shall not be considered administrative ex16 penses of the Federal Government for purposes of

17 this section, and shall be subject to sequestration to

18 the extent (and only to the extent) that other pay19 ments made by the Federal Government under or in

20 connection with that program, project, activity, or

21 account are subject to that reduction or sequestra22 tion; except that Federal payments made to a State

23 as reimbursement of administrative costs incurred

24 by that State under or in connection with the unem25 ployment compensation programs specified in sub-
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1 section (a)(11) shall be subject to reduction or se2 questration under this part notwithstanding the ex3 emption otherwise granted to such programs under

4 that subsection.

5 (3) Notwithstanding any other provision of law,

6 the administrative expenses of the following pro7 grams shall be exempt from sequestration:

8 (A) Comptroller of the Currency.

9 (B) Federal Deposit Insurance Corpora10 tion.

11 (C) Office of Thrift Supervision.

12 (D) National Credit Union Administration.

13 (E) National Credit Union Administration,

14 central liquidity facility.

15 (F) Federal Retirement Thrift Investment

16 Board.

17 (G) Resolution Funding Corporation.

18 (H) Resolution Trust Corporation.

19 (I) Board of Governors of the Federal

20 Reserve System.

21 SEC. 303. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.

22 (a) NATIONAL WOOL ACT AND THE SPECIAL MILK

23 PROGRAM.—Automatic spending increases are increases

24 in outlays due to changes in indexes in the following

25 programs:
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1 (1) National Wool Act; and

2 (2) Special milk program.

3 In those programs all amounts other than the automatic

4 spending increases shall be exempt from reduction under

5 any sequestration order.

6 (b) THE GUARANTEED STUDENT LOAN PROGRAM.—

7 (1) Any reductions which are required to be achieved from

8 the student loan programs operated pursuant to part B

9 of title IV of the Higher Education Act of 1965 under

10 any sequestration order shall be achieved only from loans

11 described in paragraphs (2) and (3) by the application of

12 the measures described in such paragraphs.

13 (2) For any loan made during the period beginning

14 on the date that a sequestration order takes effect with

15 respect to a fiscal year, the rate used in computing the

16 special allowance payment pursuant to section

17 438(b)(2)(A)(iii) of such Act for each of the first four spe18 cial allowance payments for such loan shall be adjusted

19 by reducing such rate by the lesser of—

20 (A) 0.40 percent, or

21 (B) the percentage by which the rate specified

22 in such section exceeds 3 percent.

23 (3) For any loan made during the period beginning

24 on the date that a sequestration order takes effect with

25 respect to a fiscal year, the origination fee which is author-
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1 ized to be collected pursuant to section 438(c)(2) of such

2 Act shall be increased by 0.50 percent.

3 (c) FOSTER CARE AND ADOPTION ASSISTANCE PRO4 GRAMS.—Any sequestration order shall make the reduc5 tion otherwise required under the foster care and adoption

6 assistance programs (established by part E of title IV of

7 the Social Security Act) only with respect to payments and

8 expenditures made by States in which increases in foster

9 care maintenance payment rates or adoption assistance

10 payment rates (or both) are to take effect during the fiscal

11 year involved, and only to the extent that the required re12 duction can be accomplished by applying a uniform per13 centage reduction to the Federal matching payments that

14 each such State would otherwise receive under section 474

15 of that Act (for such fiscal year) for that portion of the

16 State’s payments attributable to the increases taking ef17 fect during that year. No State’s matching payments from

18 the Federal Government for foster care maintenance pay19 ments or for adoption assistance maintenance payments

20 may be reduced by a percentage exceeding the applicable

21 domestic sequestration percentage. No State may, after

22 the date of the enactment of this Act, make any change

23 in the timetable for making payments under a State plan

24 approved under part E of title IV of the Social Security
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1 Act which has the effect of changing the fiscal year in

2 which expenditures under such part are made.

3 (d) LOW-INCOME ENTITLEMENTS.—(1) Benefit pay4 ments or payments to States or other entities for the pro5 grams listed in paragraph (2) shall not be reduced by

6 more than 1 percent under any sequestration order. When

7 reduced under an end-of-session sequestration order, those

8 benefit reductions shall occur starting with the payment

9 made at the start of January. When reduced under a with10 in-session sequestration order, those benefit reductions

11 shall occur starting with the next periodic payment.

12 (2) The programs referred to in paragraph (1) are

13 the following:

14 Aid to families with dependent children (75–

15 0412–0–1–609);

16 Child nutrition (12–3539–0–1–605);

17 Food stamp programs (12–3505–0–1–605) and

18 (12–3550–0–1–605);

19 Grants to States for medicaid (75–0512–0–1–

20 551); and

21 Supplemental security income program (75–

22 0406–0–1–609);

23 (e) FEDERAL RETIREMENT AND VETERANS’ PRO24 GRAMS.—
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1 (1) For each of the programs listed in para2 graph (2) and except as provided in paragraph (3),

3 monthly (or other periodic) benefit payments shall

4 be reduced by the uniform percentage applicable to

5 direct spending sequestrations for such programs

6 under section 301(c)(2), which shall in no case ex7 ceed 2 percent under any sequestration order. When

8 reduced under an end-of-session sequestration order,

9 those benefit reductions shall occur starting with the

10 payment made at the start of January or 7 weeks

11 after the order is issued, whichever is later. When

12 reduced under a within-session sequestration order,

13 those benefit reductions shall occur starting with the

14 next periodic payment.

15 (2) The programs subject to paragraph (1) are:

16 Benefits payable under sections 3(a),

17 3(f)(3), 4(a), or 4(f) of the Railroad Retirement

18 Act of 1974;

19 Benefits under chapter 21 of title 38,

20 United States Code, relating to specially adapt21 ed housing and mortgage-protection life insur22 ance for certain veterans with service-connected

23 disabilities (36–0137–0–1–702);

24 Benefits under section 907 of title 38,

25 United States Code, relating to burial benefits
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1 for veterans who die as a result of service-con2 nected disability (36–0155–0–1–701);

3 Benefits under chapter 39 of title 38,

4 United States Code, relating to automobiles and

5 adaptive equipment for certain disabled veter6 ans and members of the Armed Forces (36–

7 0137–0–1–702);

8 Black lung benefits (20–8144–0–7–601);

9 Central Intelligence Agency retirement and

10 disability system fund (56–3400–0–1–054);

11 Civil service retirement and disability fund

12 (24–8135–0–7–602);

13 Comptrollers general retirement system

14 (05–0107–0–1–801);

15 Foreign service retirement and disability

16 fund (19–8186–0–7–602);

17 Judicial survivors’ annuities fund (10–

18 8110–0–7–602);

19 Longshoremen’s and harborworkers’ com20 pensation benefits (16–9971–0–7–601);

21 Military retirement fund (97–8097–0–7–

22 602);

23 National Oceanic and Atmospheric Admin24 istration retirement (13–1450–0–1–306);
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1 Pensions for former Presidents (47–0105–

2 0–1–802);

3 Railroad retirement tier II (60–8011–0–7–

4 601);

5 Railroad supplemental annuity pension

6 fund (60–8012–0–7–602);

7 Retired pay, Coast Guard (69–0241–0–1–

8 403);

9 Retirement pay and medical benefits for

10 commissioned officers, Public Health Service

11 (75–0379–0–1–551);

12 Special benefits, Federal Employees’ Com13 pensation Act (16–1521–0–1–600);

14 Special benefits for disabled coal miners

15 (75–0409–0–1–601);

16 Tax Court judges survivors annuity fund

17 (23–8115–0–7–602);

18 Veterans’ compensation (36–0153–0–1–

19 701); and

20 Veterans’ pensions (36–0154–0–1–701).

21 (f) MEDICARE PROGRAM.—

22 (1) CALCULATION OF REDUCTION IN INDIVID23 UAL PAYMENT AMOUNTS.—To achieve the total per24 centage reduction in those programs required by sec25 tion 301, the percentage reduction that shall apply
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1 to payments under the health insurance programs

2 under title XVIII of the Social Security Act for serv3 ices furnished after any sequestration order is issued

4 shall be such that the reduction made in payments

5 under that order shall achieve the required total per6 centage reduction in those payments for that fiscal

7 year as determined on a 12-month basis.

8 (2) TIMING OF APPLICATION OF REDUC9 TIONS.—

10 (A) IN GENERAL.—Except as provided in

11 subparagraph (B), if a reduction is made under

12 paragraph (1) in payment amounts pursuant to

13 a sequestration order, the reduction shall be ap14 plied to payment for services furnished after the

15 effective date of the order. For purposes of the

16 previous sentence, in the case of inpatient serv17 ices furnished for an individual, the services

18 shall be considered to be furnished on the date

19 of the individual’s discharge from the inpatient

20 facility.

21 (B) PAYMENT ON THE BASIS OF COST RE22 PORTING PERIODS.—In the case in which pay23 ment for services of a provider of services is

24 made under title XVIII of the Social Security

25 Act on a basis relating to the reasonable cost
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1 incurred for the services during a cost reporting

2 period of the provider, if a reduction is made

3 under paragraph (1) in payment amounts pur4 suant to a sequestration order, the reduction

5 shall be applied to payment for costs for such

6 services incurred at any time during each cost

7 reporting period of the provider any part of

8 which occurs after the effective date of the

9 order, but only (for each such cost reporting pe10 riod) in the same proportion as the fraction of

11 the cost reporting period that occurs after the

12 effective date of the order.

13 (3) NO INCREASE IN BENEFICIARY CHARGES IN

14 ASSIGNMENT-RELATED CASES.—If a reduction in

15 payment amounts is made under paragraph (1) for

16 services for which payment under part B of title

17 XVIII of the Social Security Act is made on the

18 basis of an assignment described in section

19 1842(b)(3)(B)(ii), in accordance with section

20 1842(b)(6)(B), or under the procedure described in

21 section 1870(f)(1) of such Act, the person furnishing

22 the services shall be considered to have accepted

23 payment of the reasonable charge for the services,

24 less any reduction in payment amount made pursu25 ant to a sequestration order, as payment in full.
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1 (4) NO EFFECT ON COMPUTATION OF AAPCC.—

2 In computing the adjusted average per capita cost

3 for purposes of section 1876(a)(4) of the Social Se4 curity Act, the Secretary of Health and Human

5 Services shall not take into account any reductions

6 in payment amounts which have been or may be ef7 fected under this subtitle.

8 (g) FEDERAL PAY.—

9 (1) IN GENERAL.—Except as provided in sec10 tion 302(b)(3), new budget authority to pay Federal

11 personnel shall be reduced by the uniform percent12 age calculated under section 301(c), but no seques13 tration order may reduce or have the effect of reduc14 ing the rate of pay to which any individual is enti15 tled under any statutory pay system (as increased by

16 any amount payable under section 5304 of title 5,

17 United States Code, or section 302 of the Federal

18 Employees Pay Comparability Act of 1990) or the

19 rate of any element of military pay to which any in20 dividual is entitled under title 37, United States

21 Code, or any increase in rates of pay which is sched22 uled to take effect under section 5303 of title 5,

23 United States Code, section 1009 of title 37, United

24 States Code, or any other provision of law.
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1 (2) DEFINITIONS.—For purposes of this sub2 section:

3 (A) The term ‘‘statutory pay system’’ shall

4 have the meaning given that term in section

5 5302(1) of title 5, United States Code.

6 (B) The term ‘‘elements of military pay’’

7 means—

8 (i) the elements of compensation of

9 members of the uniformed services speci10 fied in section 1009 of title 37, United

11 States Code,

12 (ii) allowances provided members of

13 the uniformed services under sections 403a

14 and 405 of such title, and

15 (iii) cadet pay and midshipman pay

16 under section 203(c) of such title.

17 (C) The term ‘‘uniformed services’’ shall

18 have the meaning given that term in section

19 101(3) of title 37, United States Code.

20 (h) CHILD SUPPORT ENFORCEMENT PROGRAM.—

21 Any sequestration order shall accomplish the full amount

22 of any required reduction in expenditures under sections

23 455 and 458 of the Social Security Act by reducing the

24 Federal matching rate for State administrative costs

25 under such program, as specified (for the fiscal year in-
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1 volved) in section 455(a) of such Act, to the extent nec2 essary to reduce such expenditures by that amount.

3 (i) EXTENDED UNEMPLOYMENT COMPENSATION.—

4 (1) A State may reduce each weekly benefit payment made

5 under the Federal-State Extended Unemployment Com6 pensation Act of 1970 for any week of unemployment oc7 curring during any period with respect to which payments

8 are reduced under an order issued under this title by a

9 percentage not to exceed the percentage by which the Fed10 eral payment to the State under section 204 of such Act

11 is to be reduced for such week as a result of such order.

12 (2) A reduction by a State in accordance with sub13 paragraph (A) shall not be considered as a failure to fulfill

14 the requirements of section 3304(a)(11) of the Internal

15 Revenue Code of 1954.

16 (j) COMMODITY CREDIT CORPORATION.—

17 (1) POWERS AND AUTHORITIES OF THE COM18 MODITY CREDIT CORPORATION.—This title shall not

19 restrict the Commodity Credit Corporation in the

20 discharge of its authority and responsibility as a cor21 poration to buy and sell commodities in world trade,

22 to use the proceeds as a revolving fund to meet

23 other obligations and otherwise operate as a corpora24 tion, the purpose for which it was created.
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1 (2) REDUCTION IN PAYMENTS MADE UNDER

2 CONTRACTS.—(A) Payments and loan eligibility

3 under any contract entered into with a person by the

4 Commodity Credit Corporation prior to the time any

5 sequestration order has been issued shall not be re6 duced by an order subsequently issued. Subject to

7 subparagraph (B), after any sequestration order is

8 issued for a fiscal year, any cash payments made by

9 the Commodity Credit Corporation—

10 (i) under the terms of any one-year con11 tract entered into in or after such fiscal year

12 and after the issuance of the order; and

13 (ii) out of an entitlement account,

14 to any person (including any producer, lender, or

15 guarantee entity) shall be subject to reduction under

16 the order.

17 (B) Each contract entered into with producers

18 or producer cooperatives with respect to a particular

19 crop of a commodity and subject to reduction under

20 subparagraph (A) shall be reduced in accordance

21 with the same terms and conditions. If some, but

22 not all, contracts applicable to a crop of a commod23 ity have been entered into prior to the issuance of

24 any sequestration order, the order shall provide that

25 the necessary reduction in payments under contracts
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1 applicable to the commodity be uniformly applied to

2 all contracts for succeeding crops of the commodity,

3 under the authority provided in paragraph (3).

4 (3) DELAYED REDUCTION IN OUTLAYS PERMIS5 SIBLE.—Notwithstanding any other provision of this

6 title, if any sequestration order is issued with re7 spect to a fiscal year, any reduction under the order

8 applicable to contracts described in paragraph (2)

9 may provide for reductions in outlays for the ac10 count involved to occur in the fiscal years following

11 the fiscal year to which the order applies.

12 (4) UNIFORM PERCENTAGE RATE OF REDUC13 TION AND OTHER LIMITATIONS.—All reductions de14 scribed in paragraph (2) that are required to be

15 made in connection with any sequestration order

16 with respect to a fiscal year—

17 (A) shall be made so as to ensure that out18 lays for each program, project, activity, or ac19 count involved are reduced by a percentage rate

20 that is uniform for all such programs, projects,

21 activities, and accounts, and may not be made

22 so as to achieve a percentage rate of reduction

23 in any such item exceeding the rate specified in

24 the order; and
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1 (B) with respect to commodity price sup2 port and income protection programs, shall be

3 made in such manner and under such proce4 dures as will attempt to ensure that—

5 (i) uncertainty as to the scope of ben6 efits under any such program is mini7 mized;

8 (ii) any instability in market prices

9 for agricultural commodities resulting from

10 the reduction is minimized; and

11 (iii) normal production and marketing

12 relationships among agricultural commod13 ities (including both contract and non-con14 tract commodities) are not distorted.

15 In meeting the criterion set out in clause (iii)

16 of subparagraph (B) of the preceding sentence,

17 the President shall take into consideration that

18 reductions under an order may apply to pro19 grams for two or more agricultural commodities

20 that use the same type of production or market21 ing resources or that are alternative commod22 ities among which a producer could choose in

23 making annual production decisions.

24 (5) CERTAIN AUTHORITY NOT TO BE LIM25 ITED.—Nothing in this title shall limit or reduce in
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1 any way any appropriation that provides the Com2 modity Credit Corporation with funds to cover the

3 Corporation’s net realized losses.

4 (k) THE JOBS PORTION OF AFDC.—

5 (1) FULL AMOUNT OF SEQUESTRATION RE6 QUIRED.—Any sequestration order shall accomplish

7 the full amount of any required reduction of the job

8 opportunities and basic skills training program

9 under section 402(a)(19), and part F of title VI, of

10 the Social Security Act, in the manner specified in

11 this subsection. Such an order may not reduce any

12 Federal matching rate pursuant to section 403(l) of

13 the Social Security Act.

14 (2) NEW ALLOTMENT FORMULA.—

15 (A) GENERAL RULE.—Notwithstanding

16 section 403(k) of the Social Security Act, each

17 State’s percentage share of the amount avail18 able after sequestration for direct spending pur19 suant to section 403(l) of such Act shall be

20 equal to that percentage of the total amount

21 paid to the States pursuant to such section

22 403(l) for the prior fiscal year that is rep23 resented by the amount paid to such State pur24 suant to such section 403(l) for the prior fiscal

25 year, except that a State may not be allotted an
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1 amount under this subparagraph that exceeds

2 the amount that would have been allotted to

3 such State pursuant to such section 403(k) had

4 the sequestration not been in effect.

5 (B) REALLOTMENT OF AMOUNTS REMAIN6 ING UNALLOTTED AFTER APPLICATION OF GEN7 ERAL RULE.—Any amount made available after

8 sequestration for direct spending pursuant to

9 section 403(l) of the Social Security Act that

10 remains unallotted as a result of subparagraph

11 (A) of this paragraph shall be allotted among

12 the States in proportion to the absolute dif13 ference between the amount allotted, respec14 tively, to each State as a result of such sub15 paragraph and the amount that would have

16 been allotted to such State pursuant to section

17 403(k) of such Act had the sequestration not

18 been in effect, except that a State may not be

19 allotted an amount under this subparagraph

20 that results in a total allotment to the State

21 under this paragraph of more than the amount

22 that would have been allotted to such State

23 pursuant to such section 403(k) had the seques24 tration not been in effect.
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1 (l) POSTAL SERVICE FUND.—Notwithstanding any

2 other provision of law, any sequestration of the Postal

3 Service Fund shall be accomplished by a payment from

4 that Fund to the General Fund of the Treasury, and the

5 Postmaster General of the United States shall make the

6 full amount of that payment during the fiscal year to

7 which the presidential sequestration order applies.

8 (m) EFFECTS OF SEQUESTRATION.—The effects of

9 sequestration shall be as follows:

10 (1) Budgetary resources sequestered from any

11 account other than an entitlement trust, special, or

12 revolving fund account shall revert to the Treasury

13 and be permanently canceled.

14 (2) Except as otherwise provided, the same per15 centage sequestration shall apply to all programs,

16 projects, and activities within a budget account (with

17 programs, projects, and activities as delineated in

18 the appropriation Act or accompanying report for

19 the relevant fiscal year covering that account, or for

20 accounts not included in appropriation Acts, as de21 lineated in the most recently submitted President’s

22 budget).

23 (3) Administrative regulations or similar ac24 tions implementing a sequestration shall be made

25 within 120 days of the sequestration order. To the
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1 extent that formula allocations differ at different

2 levels of budgetary resources within an account, pro3 gram, project, or activity, the sequestration shall be

4 interpreted as producing a lower total appropriation,

5 with that lower appropriation being obligated as

6 though it had been the pre-sequestration appropria7 tion and no sequestration had occurred.

8 (4) Except as otherwise provided, obligations in

9 sequestered direct spending accounts shall be re10 duced in the fiscal year in which a sequestration oc11 curs and in all succeeding fiscal years.

12 (5) If an automatic spending increase is seques13 tered, the increase (in the applicable index) that was

14 disregarded as a result of that sequestration shall

15 not be taken into account in any subsequent fiscal

16 year.

17 (6) Except as otherwise provided, sequestration

18 in accounts for which obligations are indefinite shall

19 be taken in a manner to ensure that obligations in

20 the fiscal year of a sequestration and succeeding fis21 cal years are reduced, from the level that would ac22 tually have occurred, by the applicable sequestration

23 percentage.
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1 SEC. 304. POINT OF ORDER.

2 (a) IN GENERAL.—It shall not be in order in the

3 House of Representatives or the Senate to consider any

4 bill, joint resolution, amendment, or conference report that

5 includes any provision that has the effect of modifying the

6 application of this title to any entitlement program subject

7 to sequestration or exempt from sequestration under this

8 title.

9 (b) WAIVER OR SUSPENSION.—This section may be

10 waived or suspended in the House of Representatives or

11 the Senate only by the affirmative vote of three-fifths of

12 the Members, duly chosen and sworn.

13 TITLE IV—BALANCED BUDGET

14 BY FISCAL YEAR 2000

15 SEC. 401. REDUCTION OF MAXIMUM DEFICIT AMOUNT TO

16 ZERO.

17 (a) IN GENERAL.—Section 601(a)(1) of the Congres18 sional Budget Act of 1974 is amended to read as follows:

19 ‘‘(1) MAXIMUM DEFICIT AMOUNT.—The term

20 ‘maximum deficit amount’ means—

21 ‘‘(A) with respect to fiscal year 1994,

22 $255,000,000,000;

23 ‘‘(B) with respect to fiscal year 1995,

24 $219,000,000,000;

25 ‘‘(C) with respect to fiscal year 1996,

26 $183,000,000,000;
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1 ‘‘(D) with respect to fiscal year 1997,

2 $147,000,000,000;

3 ‘‘(E) with respect to fiscal year 1998,

4 $98,000,000,000;

5 ‘‘(F) with respect to fiscal year 1999,

6 $49,000,000,000; and

7 ‘‘(G) with respect to fiscal year 2000 and

8 fiscal years thereafter, zero.’’.

9 (b) RESTORATION OF FIXED MAXIMUM DEFICIT

10 AMOUNTS.—Section 253(g) of the Balanced Budget and

11 Emergency Deficit Control Act is amended by striking

12 paragraph (1)(B).

13 SEC. 402. MAXIMUM DEFICIT AMOUNT POINT OF ORDER.

14 (a) MDA POINT OF ORDER.—Section 605(b) of the

15 Congressional Budget Act of 1974 is amended to read as

16 follows:

17 ‘‘(b) MAXIMUM DEFICIT POINT OF ORDER.—

18 ‘‘(1) IN GENERAL.—It shall not be in order in

19 the House of Representatives or the Senate to con20 sider any bill, joint resolution, amendment, or con21 ference report that includes any provision that would

22 result in a deficit for a fiscal year that exceeds the

23 maximum deficit amount for such fiscal year.

24 ‘‘(2) WAIVER OR SUSPENSION.—This subsection

25 may be waived or suspended in the House of Rep-
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1 resentatives or the Senate only by the affirmative

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

3 sworn.’’.

4 (b) LIMIT ON PUBLIC DEBT.—Section 605 of the

5 Congressional Budget Act of 1974 is amended by adding

6 at the end thereof the following:

7 ‘‘(c) LIMIT ON PUBLIC DEBT.—

8 ‘‘(1) IN GENERAL.—It shall not be in order in

9 the House of Representatives or the Senate to con10 sider any bill, joint resolution, amendment, or con11 ference report that includes any provision that in12 creases the national debt held by the public estab13 lished in the joint resolution on the budget for a fis14 cal year in excess of the limit on public debt estab15 lished by the joint resolution for such fiscal year.

16 ‘‘(2) WAIVER OR SUSPENSION.—This subsection

17 may be waived or suspended in the House of Rep18 resentatives or the Senate only by the affirmative

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

20 sworn.’’.

21 (c) SOCIAL SECURITY.—

22 (1) EXCLUSION FROM BUDGET.—Section

23 13301(a) of the Budget Enforcement Act of 1990 is

24 amended by adding at the end thereof the following:
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1 ‘‘This subsection shall apply to fiscal years begin2 ning with fiscal year 2001.’’.

3 (2) EXCLUSION FROM CONGRESSIONAL BUDG4 ET.—The last sentence of section 301(a) of the Con5 gressional Budget Act of 1974 is amended by strik6 ing ‘‘The’’ and inserting ‘‘Effective with respect to

7 fiscal years beginning with fiscal year 2001, the’’.

8 (3) SOCIAL SECURITY ACT.—Section 710(a) of

9 the Social Security Act is amended by adding at the

10 end thereof the following: ‘‘This subsection shall

11 apply to fiscal years beginning with fiscal year

12 2001.’’.

13 SEC. 403. SOCIAL SECURITY FIREWALL.

14 (a) POINT OF ORDER.—Section 301(i) of the Con15 gressional Budget Act of 1974 is amended to read as

16 follows:

17 ‘‘(i) SOCIAL SECURITY POINT OF ORDER.—It shall

18 not be in order in the Senate or the House of Representa19 tives to consider any joint resolution on the budget that

20 would decrease the excess of social security revenues over

21 social security outlays in any of the fiscal years covered

22 by the joint resolution. No change in chapter 1 of the In23 ternal Revenue Code of 1986 shall be treated as affecting

24 the amount of social security revenues unless such provi-
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1 sion changes the income tax treatment of social security

2 benefits.’’.

3 (b) BALANCING THE UNIFIED BUDGET.—Section

4 601(a)(1) of the Congressional Budget Act of 1974, as

5 amended by section 401(a) of this Act, is amended by add6 ing at the end thereof the following:

7 ‘‘For fiscal years after fiscal year 1999, the maxi8 mum deficit amount shall be set at zero for each fis9 cal year in the joint resolution on the budget.’’.

10 (c) ELIMINATION OF SOCIAL SECURITY DEFICIT.—

11 Not later than October 1, 2000, Congress may adopt

12 budget procedures for the elimination of the non-Social

13 Security deficit by not later than September 30, 2005. The

14 non-Social Security deficit shall be defined as the Federal

15 budget deficit excluding the receipts and outlays of the

16 Social Security Trust Fund.

17 SEC. 404. LOOK-BACK SEQUESTER.

18 Section 253 of the Balanced Budget and Emergency

19 Deficit Control Act of 1985 is amended by adding at the

20 end thereof the following new subsection:

21 ‘‘(i) LOOK-BACK SEQUESTER.—

22 ‘‘(1) IN GENERAL.—On July 1 of each fiscal

23 year, the Director of OMB shall determine if laws

24 effective during the current fiscal year will cause the

25 deficit to exceed the maximum deficit amount for
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1 such fiscal year. If the limit is exceeded, there shall

2 be a preliminary sequester on July 1 to eliminate the

3 excess.

4 ‘‘(2) PERMANENT SEQUESTER.—Budget au5 thority sequestered on July 1 pursuant to paragraph

6 (1) shall be permanently canceled on July 15.

7 ‘‘(3) NO MARGIN.—The margin for determining

8 a sequester under this subsection shall be zero.

9 ‘‘(4) SEQUESTRATION PROCEDURES.—The pro10 vision of subsections (c), (d), and (e) of this section

11 shall apply to a sequester under this subsection.’’.

12 SEC. 405. SAVINGS PROVISION.

13 The amendments made by this title, the limits estab14 lished by this title, and the procedures provided in Acts

15 amended by this title necessary to enforce such limits shall

16 apply with respect to fiscal years beginning with fiscal

17 year 1993 and shall continue notwithstanding the termi18 nation of any Act setting forth such procedures.

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