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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1613 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1613

     To reduce the Federal budget deficit in a responsible manner.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 6, 2009

  Mr. Bennet introduced the following bill; which was read twice and 
                referred to the Committee on the Budget

_______________________________________________________________________

                                 A BILL

 
     To reduce the Federal budget deficit in a responsible manner.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Deficit Reduction 
Act of 2009''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
                 TITLE I--DISCRETIONARY SPENDING LIMITS

Sec. 101. Discretionary spending limits.
Sec. 102. Sequestration for discretionary limits.
Sec. 103. Adjustments to discretionary spending limits.
Sec. 104. Low-growth report.
Sec. 105. Conforming amendments.
                        TITLE II--DEFICIT LIMITS

Sec. 201. Deficit limits.
Sec. 202. Effective date.
                     TITLE III--GENERAL PROVISIONS

Sec. 301. Exempt programs and activities.
Sec. 302. Enforcement procedures under the Congressional Budget Act.
Sec. 303. Definitions.

                 TITLE I--DISCRETIONARY SPENDING LIMITS

SEC. 101. DISCRETIONARY SPENDING LIMITS.

    Section 251(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by striking beginning with ``means--'' through 
paragraph (13) and inserting ``means, for fiscal years 2011 through 
2019, the baseline, minus any spending designated as an emergency, for 
the preceding fiscal year as adjusted for inflation and''.

SEC. 102. SEQUESTRATION FOR DISCRETIONARY LIMITS.

    Subsection (a) of section 251 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 are amended to read as follows:
    ``(a) Sequestration.--
            ``(1) In general.--Not later than 45 calendar days after 
        Congress adjourns to end a session, OMB shall conduct a 
        sequestration to eliminate the budget year breach, if any, 
        resulting from budget authority and outlays in excess of the 
        discretionary spending limit.
            ``(2) Breach calculation.--The breach is, if greater than 
        zero, the breach for the budget year, minus any adjustments 
        pursuant to subsection (b).
            ``(3) Sequestration.--To eliminate the breach in a budget 
        year, each account shall be reduced by a dollar amount 
        calculated by multiplying the level of sequesterable budgetary 
        resources in that account at that time by the uniform 
        percentage necessary to enforce subsection (c).
            ``(4) Look back.--If, after June 30, an appropriation for 
        the fiscal year in progress is enacted that causes a breach, 
        the discretionary spending limits for the next fiscal year 
        shall be reduced by the amount or amounts of that breach.''.

SEC. 103. ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.

    Section 251(b) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows:
    ``(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 for such changes.
            ``(2) Adjustments.--
                    ``(A) Emergency designation.--If appropriations for 
                discretionary accounts are enacted that the President 
                designates as emergency requirements and that the 
                Congress so designates in statute, the adjustment shall 
                be the total of such appropriations in discretionary 
                accounts designated as emergency requirements and the 
                outlays flowing in all fiscal years from such 
                appropriations.
                    ``(B) Overseas contingency operations 
                designation.--If appropriations for discretionary 
                accounts are enacted that the President designates as 
                overseas contingency operations related to the global 
                war on terrorism, including Iraq and Afghanistan, that 
                the Congress so designates in statute, the adjustment 
                shall be the total of such appropriations in 
                discretionary accounts designated as overseas 
                contingency operations and the outlays flowing in all 
                fiscal years from such appropriations.
            ``(3) Special outlay allowance.--If, in any fiscal year, 
        outlays for a category exceed the discretionary spending limit 
        for that category but new budget authority does not exceed its 
        limit for that category (after application of the first step of 
        a spending reduction described in subsection (a)(2), if 
        necessary), the adjustment in outlays for a fiscal year is the 
        amount of the excess but not to exceed 0.5 percent of the sum 
        of the adjusted discretionary spending limits on outlays for 
        that fiscal year.''.

SEC. 104. LOW-GROWTH REPORT.

    Section 254(i) of the Balanced Budget and Emergency Deficit Control 
Act is amended to read as follows:
    ``(i) Low-Growth Report.--
            ``(1) In general.--At any time, OMB, in consultation with 
        the Secretary of Commerce, shall notify the Congress if--
                    ``(A) during the period consisting of the quarter 
                during which such notification is given, the quarter 
                preceding such notification, the 4 quarters following 
                such notification, OMB has determined that real 
                economic growth is projected or estimated to be less 
                than 1 percent with respect to each of any 2 
                consecutive quarters within such period; or
                    ``(B) 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 the following four quarters is 
                projected or estimated to be less than 1 percent with 
                respect to each of any two consecutive quarters.
            ``(2) Suspension.--Sequestration under sections 251 and 
        253A shall be suspended in any fiscal year in which there occur 
        2 quarters of low growth as described in subparagraphs (A) or 
        (B) of paragraph (1).''.

SEC. 105. CONFORMING AMENDMENTS.

    Section 275(b) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by striking ``2002'' and inserting ``2019'' and 
by striking ``2006'' and inserting ``2019''.

                        TITLE II--DEFICIT LIMITS

SEC. 201. DEFICIT LIMITS.

    The Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended by inserting after section 253 the following:

``SEC. 253A. ENFORCING DEFICIT LIMITS.

    ``(a) Enforcing Deficit Limits.--In this section, the term `deficit 
limit' means an amount, as estimated by OMB, that equals--
            ``(1) 4 percent of GDP for fiscal year 2012; and
            ``(2) 3 percent of GDP for fiscal years 2013 through 2019.
    ``(b) Determining the GDP.--The Office of Management and Budget 
shall estimate the GDP at the outset of the fiscal year, on April 30, 
on August 20, and 15 days after the conclusion of the fiscal year. CBO 
shall provide advisory reports calculating the GDP at identical times.
    ``(c) Sequestration.--
            ``(1) In general.--
                    ``(A) Excess deficit.--Not later than 45 calendar 
                days after Congress adjourns, OMB shall conduct a 
                sequestration to eliminate the excess deficit.
                    ``(B) Definition.--For purposes of this subsection, 
                the term `excess deficit' means the deficit for the 
                preceding year minus the deficit limit as described in 
                the subsection (a) and adjusted pursuant to paragraph 
                (2).
            ``(2) Adjustments.--
                    ``(A) Emergency designation.--If direct spending or 
                appropriations for discretionary accounts are enacted 
                that the President designates as emergency requirements 
                and that the Congress so designates in statute, the 
                adjustment shall be the total of such direct spending 
                or appropriations in discretionary accounts designated 
                as emergency requirements and the outlays flowing in 
                all fiscal years from such spending or appropriations.
                    ``(B) Overseas contingency operations 
                designation.--If direct spending or appropriations for 
                discretionary accounts are enacted that the President 
                designates as overseas contingency operations related 
                to the global war on terrorism, including Iraq and 
                Afghanistan, that the Congress so designates in 
                statute, the adjustment shall be the total of such 
                direct spending or appropriations in discretionary 
                accounts designated as overseas contingency operations 
                and the outlays flowing in all fiscal years from such 
                spending or appropriations.
            ``(3) Preview report.--CBO shall submit an advisory 
        sequestration preview report as described in section 254(c)(4) 
        on August 10 of each year. OMB shall produce an sequestration 
        preview report on August 20 as described in section 254(c)(4). 
        Fifteen days after Congress adjourns, the OMB shall issue an 
        update sequestration report as described in section 254(e). 
        Thirty days later, the OMB should issue its final sequestration 
        report as described in section 254(f)(3). It shall be 
        accompanied by a Presidential order detailing the uniform 
        spending reductions. The reductions should generally follow the 
        process set forth in section 253 and 254, except as provided in 
        this section.
            ``(4) Congressional action.--If the August 20 OMB report 
        projects a sequestration, the Senate and House Budget 
        Committees may report a resolution directing their committees 
        to change the existing law to achieve the goals outlined in the 
        August 20 report. If the Committees report their respective 
        resolutions, a reconciliation process shall be triggered in 
        accordance with section 258C.
            ``(5) Reducing nonexempt budgetary resources by a uniform 
        percentage.--OMB shall calculate the uniform percentage by 
        which the budgetary resources of nonexempt direct and 
        discretionary spending programs are to be sequestered such that 
        the outlay savings resulting from that sequestration, as 
        calculated under this subsection, to eliminate the excess 
        deficit. If the uniform percentage calculated under the prior 
        sentence exceeds 4 percent, the Medicare programs described in 
        section 256(d) shall be reduced by 4 percent and the uniform 
        percentage by which the budgetary resources of all other 
        nonexempt direct and discretionary spending programs are to be 
        sequestered shall be increased, as necessary, so that the 
        sequestration of Medicare and of all other nonexempt direct and 
        discretionary spending programs together produce the required 
        outlay savings.
    ``(d) Look Back.--If, after June 30, a bill resulting in outlays 
for the fiscal year in progress is enacted that causes an excess 
deficit, the excess deficit for the next fiscal year shall be increased 
by the amount or amounts of that breach.''.

SEC. 202. EFFECTIVE DATE.

    This title shall apply to fiscal year 2012 and subsequent fiscal 
years through fiscal year 2019.

                     TITLE III--GENERAL PROVISIONS

SEC. 301. EXEMPT PROGRAMS AND ACTIVITIES.

    (a) Designations.--Section 255 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 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 the Balanced 
Budget and Emergency Deficit Control Act of 1985 are amended to read as 
follows:
    ``(a) Social Security Benefits and Tier I Railroad Retirement 
Benefits.--Benefits payable under the old-age, survivors, and 
disability insurance program established under title II of the Social 
Security Act (42 U.S.C. 401 et seq.), and benefits payable under 
section 231b(a), 231b(f)(2), 231c(a), and 231c(f) of title 45 United 
States Code, shall be exempt from reduction under any order issued 
under this part.
    ``(b) Veterans Programs.--The following program 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.''.
    (c) Other Programs and Activities, Low-income Programs, and 
Economic Recovery Programs.--Subsections (g) and (h) of section 255 of 
the Balanced Budget and Emergency Deficit Control Act of 1985 are 
amended to read as follows:
    ``(g) Other Programs and Activities.--
            ``(1)(A) The following budget accounts and activities shall 
        be exempt from reduction under any order issued under this 
        part:
                    ``Activities resulting from private donations, 
                bequests, or voluntary contributions to the Government.
                    ``Activities financed by voluntary payments to the 
                Government for goods or services to be provided for 
                such payments.
                    ``Administration of Territories, Northern Mariana 
                Islands Covenant grants (14-0412-0-1-808).
                    ``Advances to the Unemployment Trust Fund and Other 
                Funds (16-0327-0-1-600).
                    ``Black Lung Disability Trust Fund Refinancing (16-
                0329-0-1-601).
                    ``Bonneville Power Administration Fund and 
                borrowing authority established pursuant to section 13 
                of Public Law 93-454 (1974), as amended (89-4045-0-3-
                271).
                    ``Claims, Judgments, and Relief Acts (20-1895-0-1-
                808).
                    ``Compact of Free Association (14-0415-0-1-808).
                    ``Compensation of the President (11-0209-01-1-802).
                    ``Comptroller of the Currency, Assessment Funds 
                (20-8413-0-8-373).
                    ``Continuing Fund, Southeastern Power 
                Administration (89-5653-0-2-271).
                    ``Continuing Fund, Southwestern Power 
                Administration (89-5649-0-2-271).
                    ``Dual Benefits Payments Account (60-0111-0-1-601).
                    ``Emergency Fund, Western Area Power Administration 
                (89-5069-0-2-271).
                    ``Exchange Stabilization Fund (20-4444-0-3-155).
                    ``Federal Deposit Insurance Corporation, Deposit 
                Insurance Fund (51-4596-4-4-373).
                    ``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 Housing Finance Agency, Administrative 
                Expenses (95-5532-0-2-371).
                    ``Federal Payment to the District of Columbia 
                Judicial Retirement and Survivors Annuity Fund (20-
                1713-0-1-752).
                    ``Federal Payment to the District of Columbia 
                Pension Fund (20-1714-0-1-601).
                    ``Federal Payments to the Railroad Retirement 
                Accounts (60-0113-0-1-601).
                    ``Federal Reserve Bank Reimbursement Fund (20-1884-
                0-1-803).
                    ``Financial Agent Services (20-1802-0-1-803).
                    ``Foreign Military Sales Trust Fund (11-8242-0-7-
                155).
                    ``Hazardous Waste Management, Conservation Reserve 
                Program (12-4336-0-3-999).
                    ``Host Nation Support Fund for Relocation (97-8337-
                0-7-051).
                    ``Internal Revenue Collections for Puerto Rico (20-
                5737-0-2-806).
                    ``Intragovernmental funds, including those from 
                which the outlays are derived primarily from resources 
                paid in from other government accounts, except to the 
                extent such funds are augmented by direct 
                appropriations for the fiscal year during which an 
                order is in effect.
                    ``Medical Facilities Guarantee and Loan Fund (75-
                9931-0-3-551).
                    ``National Credit Union Administration, Central 
                Liquidity Facility (25-4470-0-3-373).
                    ``National Credit Union Administration, Corporate 
                Credit Union Share Guarantee Program (25-4476-0-3-376).
                    ``National Credit Union Administration, Credit 
                Union Homeowners Affordability Relief Program (25-4473-
                0-3-371).
                    ``National Credit Union Administration, Credit 
                Union Share Insurance Fund (25-4468-0-3-373).
                    ``National Credit Union Administration, Credit 
                Union System Investment Program (25-4474-0-3-376).
                    ``National Credit Union Administration, Operating 
                fund (25-4056-0-3-373).
                    ``National Credit Union Administration, Share 
                Insurance Fund Corporate Debt Guarantee Program (25-
                4469-0-3-376).
                    ``National Credit Union Administration, U.S. 
                Central Federal Credit Union Capital Program (25-4475-
                0-3-376).
                    ``Office of Thrift Supervision (20-4108-0-3-373).
                    ``Panama Canal Commission Compensation Fund (16-
                5155-0-2-602).
                    ``Payment of Vietnam and USS Pueblo prisoner-of-war 
                claims within the Salaries and Expenses, Foreign Claims 
                Settlement account (15-0100-0-1-153).
                    ``Payment to Civil Service Retirement and 
                Disability Fund (24-0200-0-1-805).
                    ``Payment to Department of Defense Medicare-
                Eligible Retiree Health Care Fund (97-0850-0-1-054).
                    ``Payment to Judiciary Trust Funds (10-0941-0-1-
                752).
                    ``Payment to Military Retirement Fund (97-0040-0-1-
                054).
                    ``Payment to the Foreign Service Retirement and 
                Disability Fund (19-0540-0-1-153).
                    ``Payments to Copyright Owners (03-5175-0-2-376).
                    ``Payments to Health Care Trust Funds (75-0580-0-1-
                571).
                    ``Payment to Radiation Exposure Compensation Trust 
                Fund (15-0333-0-1-054).
                    ``Payments to Social Security Trust Funds (28-0404-
                0-1-651).
                    ``Payments to the United States Territories, Fiscal 
                Assistance (14-0418-0-1-806).
                    ``Payments to trust funds from excise taxes or 
                other receipts properly creditable to such trust funds.
                    ``Payments to widows and heirs of deceased Members 
                of Congress (00-0215-0-1-801).
                    ``Postal Service Fund (18-4020-0-3-372).
                    ``Radiation Exposure Compensation Trust Fund (15-
                8116-0-1-054).
                    ``Reimbursement to Federal Reserve Banks (20-0562-
                0-1-803).
                    ``Salaries of Article III judges.
                    ``Soldiers and Airmen's Home, payment of claims 
                (84-8930-0-7-705).
                    ``Tennessee Valley Authority Fund, except nonpower 
                programs and activities (64-4110-0-3-999).
                    ``Tribal and Indian trust accounts within the 
                Department of the Interior which fund prior legal 
                obligations of the Government or which are established 
                pursuant to Acts of Congress regarding Federal 
                management of tribal real property or other fiduciary 
                responsibilities, including but not limited to Tribal 
                Special Fund (14-5265-0-2-452), Tribal Trust Fund (14-
                8030-0-7-452), White Earth Settlement (14-2204-0-1-
                452), and Indian Water Rights and Habitat Acquisition 
                (14-5505-0-2-303).
                    ``United Mine Workers of America 1992 Benefit Plan 
                (95-8260-0-7-551).
                    ``United Mine Workers of America 1993 Benefit Plan 
                (95-8535-0-7-551).
                    ``United Mine Workers of America Combined Benefit 
                Fund (95-8295-0-7-551).
                    ``United States Enrichment Corporation Fund (95-
                4054-0-3-271).
                    ``Universal Service Fund (27-5183-0-2-376).
                    ``Vaccine Injury Compensation (75-0320-0-1-551).
                    ``Vaccine Injury Compensation Program Trust Fund 
                (20-8175-0-7-551).
            ``(B) The following Federal retirement and disability 
        accounts and activities shall be exempt from reduction under 
        any order issued under this part:
                    ``Black Lung Disability Trust Fund (20-8144-0-7-
                601).
                    ``Central Intelligence Agency Retirement and 
                Disability System Fund (56-3400-0-1-054).
                    ``Civil Service Retirement and Disability Fund (24-
                8135-0-7-602).
                    ``Comptrollers general retirement system (05-0107-
                0-1-801).
                    ``Contributions to U.S. Park Police annuity 
                benefits, Other Permanent Appropriations (14-9924-0-2-
                303).
                    ``Court of Appeals for Veterans Claims Retirement 
                Fund (95-8290-0-7-705).
                    ``Department of Defense Medicare-Eligible Retiree 
                Health Care Fund (97-5472-0-2-551).
                    ``District of Columbia Federal Pension Fund (20-
                5511-0-2-601).
                    ``District of Columbia Judicial Retirement and 
                Survivors Annuity Fund (20-8212-0-7-602).
                    ``Energy Employees Occupational Illness 
                Compensation Fund (16-1523-0-1-053).
                    ``Foreign National Employees Separation Pay (97-
                8165-0-7-051).
                    ``Foreign Service National Defined Contributions 
                Retirement Fund (19-5497-0-2-602).
                    ``Foreign Service National Separation Liability 
                Trust Fund (19-8340-0-7-602).
                    ``Foreign Service Retirement and Disability Fund 
                (19-8186-0-7-602).
                    ``Government Payment for Annuitants, Employees 
                Health Benefits (24-0206-0-1-551).
                    ``Government Payment for Annuitants, Employee Life 
                Insurance (24-0500-0-1-602).
                    ``Judicial Officers' Retirement Fund (10-8122-0-7-
                602).
                    ``Judicial Survivors' Annuities Fund (10-8110-0-7-
                602).
                    ``Military Retirement Fund (97-8097-0-7-602).
                    ``National Railroad Retirement Investment Trust 
                (60-8118-0-7-601).
                    ``National Oceanic and Atmospheric Administration 
                retirement (13-1450-0-1-306).
                    ``Pensions for former Presidents (47-0105-0-1-802).
                    ``Postal Service Retiree Health Benefits Fund (24-
                5391-0-2-551).
                    ``Public Safety Officer Benefits (15-0403-0-1-754).
                    ``Rail Industry Pension Fund (60-8011-0-7-601).
                    ``Retired Pay, Coast Guard (70-0602-0-1-403).
                    ``Retirement Pay and Medical Benefits for 
                Commissioned Officers, Public Health Service (75-0379-
                0-1-551).
                    ``Special Benefits for Disabled Coal Miners (16-
                0169-0-1-601).
                    ``Special Benefits, Federal Employees' Compensation 
                Act (16-1521-0-1-600).
                    ``Special Workers Compensation Expenses (16-9971-0-
                7-601).
                    ``Tax Court Judges Survivors Annuity Fund (23-8115-
                0-7-602).
                    ``United States Court of Federal Claims Judges' 
                Retirement Fund (10-8124-0-7-602).
                    ``United States Secret Service, DC Annuity (70-
                0400-0-1-751).
                    ``Voluntary Separation Incentive Fund (97-8335-0-7-
                051).
            ``(2) Prior legal obligations of the Government in the 
        following budget accounts and activities shall be exempt from 
        any order issued under this part:
                    ``Biomass Energy Development (20-0114-0-1-271).
                    ``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).
                    ``Federal Home Loan Mortgage Corporation (Freddie 
                Mac).
                    ``Federal National Mortgage Corporation (Fannie 
                Mae).
                    ``Geothermal resources development fund (89-0206-0-
                1-271).
                    ``Low-Rent Public Housing--Loans and Other Expenses 
                (86-4098-0-3-604).
                    ``Maritime Administration, War Risk Insurance 
                Revolving Fund (69-4302-0-3-403).
                    ``Natural Resource Damage Assessment Fund (14-1618-
                0-1-302).
                    ``Overseas Private Investment Corporation, 
                Noncredit Account (71-4184-0-3-151).
                    ``Pension Benefit Guaranty Corporation Fund (16-
                4204-0-3-601).
                    ``San Joaquin Restoration Fund (14-5537-0-2-301).
                    ``Servicemembers' Group Life Insurance Fund (36-
                4009-0-3-701).
                    ``Terrorism Insurance Program (20-0123-0-1-376).
    ``(h) Low-Income Programs.--The following programs shall be exempt 
from reduction under any order issued under this part:
            ``Academic Competitiveness/Smart Grant Program (91-0205-0-
        1-502).
            ``Child Care Entitlement to States (75-1550-0-1-609).
            ``Child Enrollment Contingency Fund (75-5551-0-2-551).
            ``Child Nutrition Programs (with the exception of special 
        milk programs) (12-3539-0-1-605).
            ``Children's Health Insurance Fund (75-0515-0-1-551).
            ``Commodity Supplemental Food Program (12-3507-0-1-605).
            ``Contingency Fund (75-1522-0-1-609).
            ``Family Support Programs (75-1501-0-1-609).
            ``Federal Pell Grants under section 401 Title IV of the 
        Higher Education Act.
            ``Grants to States for Medicaid (75-0512-0-1-551).
            ``Payments for Foster Care and Permanency (75-1545-0-1-
        609).
            ``Supplemental Nutrition Assistance Program (12-3505-0-1-
        605).
            ``Supplemental Security Income Program (28-0406-0-1-609).
            ``Temporary Assistance for Needy Families (75-1552-0-1-
        609).''.
    (d) Economic Recovery Programs.--Section 255 of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended by adding the 
following after subsection (h):
    ``(i) Economic Recovery Programs.--The following programs shall be 
exempt from reduction under any order issued under this part:
            ``All programs enacted in, or increases in programs 
        provided by, the American Recovery and Reinvestment Act of 
        2009.
            ``Exchange Stabilization Fund-Money Market Mutual Fund 
        Guaranty Facility (20-4274-0-3-376).
            ``Financial Stabilization Reserve (20-0131-4-1-376).
            ``GSE Mortgage-Backed Securities Purchase Program Account 
        (20-0126-0-1-371).
            ``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).
            ``Troubled Asset Relief Program Account (20-0132-0-1-376).
            ``Troubled Asset Relief Program Equity Purchase Program 
        (20-0134-0-1-376).
            ``Troubled Asset Relief Program, Home Affordable 
        Modification Program (20-0136-0-1-604).''.

SEC. 302. ENFORCEMENT PROCEDURES UNDER THE CONGRESSIONAL BUDGET ACT.

    (a) Enforcement.--Title III of the Congressional Budget Act of 1974 
is amended by adding after section 315 the following new section:

``SEC. 316. ENFORCEMENT PROCEDURES.

    ``(a) Discretionary Spending Limits.--It shall not be in order in 
the House of Representatives or the Senate to consider any bill, joint 
resolution, amendment, or conference report that includes any provision 
that would cause the discretionary spending limits as set forth in 
section 251(c) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 to be exceeded.
    ``(b) Deficit Limits.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that would 
cause the most recently reported, current deficit limits set forth in 
section 253A of the Balanced Budget and Emergency Deficit Control Act 
of 1985 to be exceeded.
    ``(c) Waiver or Suspension.--
            ``(1) In the senate.--The provisions of 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) In the house.--The provisions of this section may be 
        waived or suspended in the House of Representatives only by a 
        rule or order proposing only to waive such provisions by an 
        affirmative vote of three-fifths of the Members, duly chosen 
        and sworn.
    ``(d) Point of Order Protection.--In the House, it shall not be in 
order to consider a rule or order that waives the application of 
paragraph (2) of subsection (c).
    ``(e) Motion To Suspend.--It shall not be in order for the Speaker 
to entertain a motion to suspend the application of this section under 
clause 1 of rule XV.''.
    (b) Table of Contents.--The table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Control Act of 1974 is 
amended by inserting after the item relating to section 315 the 
following new item:

``Sec. 316. Enforcement procedures.''.

SEC. 303. DEFINITIONS.

    Section 250(c)(4) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by striking paragraph (4), redesignating 
the succeeding paragraphs accordingly, and adding the following 
paragraphs:
            ``(19) The term `spending reduction' refers to the 
        cancellation of budgetary resources provided by discretionary 
        appropriations or mandatory spending.
            ``(20) The term `GDP', for any fiscal year, means the gross 
        domestic product during such fiscal year consistent with 
        Department of Commerce definitions.
            ``(21)(A) The term `emergency requirement' means any 
        provision that provides new budget authority and resulting 
        outlays for a situation that poses a threat to life, property, 
        or national security and is--
                    ``(i) sudden, quickly coming into being, and not 
                building up over time;
                    ``(ii) an urgent, pressing, and compelling need 
                requiring immediate action;
                    ``(iii) unforeseen, unpredictable, and 
                unanticipated; and
                    ``(iv) not permanent, temporary in nature.
            ``(B) An emergency that is part of an aggregate level of 
        anticipated emergencies, particularly when normally estimated 
        in advance, is not unforeseen.''.
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