[Federal Register Volume 89, Number 19 (Monday, January 29, 2024)]
[Notices]
[Pages 5578-5580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01706]


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OFFICE OF MANAGEMENT AND BUDGET


Notice; 2023 Statutory Pay-As-You-Go Act Annual Report

AGENCY: Office of Management and Budget (OMB).

ACTION: Notice.

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SUMMARY: This report is being published as required by the Statutory 
Pay-As-You-Go (PAYGO) Act of 2010. The Act requires that OMB issue an 
annual report and a sequestration order, if necessary.

FOR FURTHER INFORMATION CONTACT: Erin O'Brien. 202-395-3106.

SUPPLEMENTARY INFORMATION: This report can be found at https://www.whitehouse.gov/omb/paygo/.
    Authority: 2 U.S.C. 934.

Kelly A. Kinneen,
Assistant Director for Budget.

    This Report is being published pursuant to section 5 of the 
Statutory Pay-As-You-Go (PAYGO) Act of 2010, Public Law 111-139, 124 
Stat. 8, 2 U.S.C. 934, which requires that OMB issue an annual PAYGO 
report, including a sequestration order if necessary, no later than 14 
working days after the end of a congressional session.
    This Report describes the budgetary effects of all PAYGO 
legislation enacted during the first session of the 118th Congress and 
presents the 5-year and 10-year PAYGO scorecards maintained by OMB.\1\ 
Because neither the 5-year nor 10-year scorecard shows a debit for the 
budget year, which for purposes of this Report is fiscal year 2024,\2\ 
a sequestration order under subsection 5(b) of the PAYGO Act, 2 U.S.C 
934(b) is not required.
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    \1\ This report encompasses laws enacted between January 3, 2023 
at noon and January 3, 2024 at 11:55 a.m. (Pub. L. 117-329 through 
Pub. L. 118-34).
    \2\ References to years on the PAYGO scorecards are to fiscal 
years.
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    The budget year balance on each of the PAYGO scorecards is zero 
because the Consolidated Appropriations Act, 2023 (Pub. L. 117-328) 
shifted the debits on both scorecards from fiscal year 2024 to fiscal 
year 2025. The change directed by Public Law 117-328 is discussed in 
more detail in section IV of this report.
    During the first session of the 118th Congress, no laws with PAYGO 
effects were enacted with emergency requirements under section 4(g) of 
the PAYGO Act, 2 U.S.C. 933(g), though as discussed later in this 
report, one law was enacted that rescinded funding that received an 
emergency designation

[[Page 5579]]

when it was enacted. Two laws had estimated budgetary effects on direct 
spending and/or revenues that were excluded from the calculations of 
the PAYGO scorecards due to provisions excluding part of the law from 
section 4(d) of the PAYGO Act, 2 U.S.C. 933(d).

I. PAYGO Legislation With Budgetary Effects

    PAYGO legislation is authorizing legislation that affects direct 
spending or revenues, and appropriations legislation that affects 
direct spending in the years after the budget year or affects revenues 
in any year.\3\ For a more complete description of the Statutory PAYGO 
Act, see Chapter 4, ``Budget Process,'' of the Analytical Perspectives 
volume of the 2024 President's Budget, found on the website of the U.S. 
Government Printing Office (https://www.govinfo.gov/app/collection/budget/2024/BUDGET-2024-PER).
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    \3\ Provisions in appropriations acts that affect direct 
spending in the years after the budget year (also known as 
``outyears'') or affect revenues in any year are considered to be 
budgetary effects for the purposes of the PAYGO scorecards except if 
the provisions produce outlay changes that net to zero over the 
current year, budget year, and the four subsequent years. As 
specified in section 3 of the PAYGO Act, off-budget effects are not 
counted as budgetary effects. Off-budget effects refer to effects on 
the Social Security trust funds (Old-Age and Survivors Insurance and 
Disability Insurance) and the Postal Service.
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    The PAYGO Act's requirement of deficit neutrality is based on two 
scorecards that tally the cumulative budgetary effects of PAYGO 
legislation as averaged over rolling 5- and 10-year periods starting 
with the budget year. The 5-year and 10-year PAYGO scorecards for each 
congressional session begin with the balances of costs or savings 
carried over from previous sessions and then tally the costs or savings 
of PAYGO laws enacted in the most recent session.
    The 5-year PAYGO scorecard for the first session of the 118th 
Congress began with balances of $443,138 million in 2024, $1,256,908 
million in 2025, $443,138 million in 2026, and $72,505 million in 2027. 
The 10-year PAYGO scorecard for the first session of the 118th Congress 
began with balances of $242,729 million in 2024, $672,477 million in 
2025, $242,729 million per year for 2026-2031, and $55,709 million for 
2032.
    Laws enacted during the first session of the 118th Congress created 
balances on the 5- and 10-year scorecards of -$1,188 million and -$891 
million in each year, respectively. Public Law 117-328 shifted the 
fiscal year 2024 debits on both scorecards to fiscal year 2025. 
Therefore, the 2024 balance on both the 5- and 10-year scorecards is 
zero. There are balances on the 5-year scorecard of $1,697,668 million 
in 2025, $441,949 million in 2026, $71,317 million in 2027, and -$1,188 
million in 2028. There are balances on the 10-year scorecard of 
$913,423 million in 2025, $241,837 million in per year for 2026-2031, 
$54,818 million in 2032, and -$891 million in 2033.
    In the first session of the 118th Congress, 16 laws were enacted 
that were determined to constitute PAYGO legislation. Of the 16 enacted 
PAYGO laws, 5 laws were estimated to have PAYGO budgetary effects 
(costs or savings) in excess of $500,000 over one or both of the 5-year 
or 10-year PAYGO windows. These were:
    <bullet> Public Law 117-333, Veterans Auto and Education 
Improvement Act of 2022;
    <bullet> Public Law 118-5, Fiscal Responsibility Act of 2023;
    <bullet> Public Law 118-19, An Act to amend title 38, United States 
Code, to extend and modify certain authorities and requirements 
relating to the Department of Veterans Affairs, and for other purposes;
    <bullet> Public Law 118-27, 5G Spectrum Authority Licensing 
Enforcement Act; and
    <bullet> Public Law 118-31, National Defense Authorization Act for 
Fiscal Year 2024.
    In addition to the laws identified above, 11 laws enacted in this 
session were estimated to have negligible budgetary effects on the 
PAYGO scorecards--costs or savings of less than $500,000 over both the 
5-year and 10-year PAYGO windows.

II. Budgetary Effects Excluded From the Scorecard Balances

A. Emergency Designations

    No laws were enacted in the first session of the 118th Congress 
with an emergency designation under the Statutory PAYGO Act. However, 
scorekeeping guidelines adopted by the Office of Management and Budget, 
the Congressional Budget Office, and the Congressional budget 
committees preclude scoring savings for the subsequent rescission of 
funding that was designated as emergency spending when enacted. 
Although the provisions rescinding the emergency funding are reported 
on the PAYGO scorecards maintained by OMB, the savings associated with 
the rescissions are not included in the balances on the scorecards that 
are used to determine the need for a sequestration. One law was enacted 
during the first session of the 118th Congress that rescinded funding 
that was designated as emergency when it was enacted:
    <bullet> Public Law 118-5, Fiscal Responsibility Act of 2023.

B. Statutory Provisions Excluding Legislation From the Scorecards

    Two laws enacted in the first session of the 118th Congress had 
estimated budgetary effects on direct spending and revenues that were 
excluded from the calculations for the PAYGO scorecards due to 
provisions in law excluding part of the law from section 4(d) of the 
PAYGO Act.
    Budgetary effects in two laws were excluded from the scorecards:
    <bullet> Public Law 118-15, Continuing Appropriations Act, 2024 and 
Other Extensions Act; and
    <bullet> Public Law 118-22, Further Continuing Appropriations and 
Other Extensions Act, 2024.

III. PAYGO Scorecards

                                                           Statutory Pay-As-You-Go Scorecards
                                        [In millions of dollars; negative amounts portray decreases in deficits]
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                                                2024        2025        2026       2027       2028
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First Session of the 118th Congress.......       -1,188      -1,188     -1,188     -1,188     -1,188
Balances from Previous Sessions...........      443,138   1,256,908    443,138     72,505          0
Change in balances pursuant to Sec.            -441,949     441,949          0          0          0
 1001(d)(2) of Division O of Public Law
 117-328..................................
5-year PAYGO Scorecard....................            0   1,697,668    441,949     71,317     -1,188
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                                                   2024        2025       2026       2027       2028       2029       2030       2031       2032    2033
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First Session of the 118th Congress.......         -891        -891       -891       -891       -891       -891       -891       -891       -891    -891

[[Page 5580]]

 
Balances from Previous Sessions...........      242,729     672,477    242,729    242,729    242,729    242,729    242,729    242,729     55,709       0
Change in balances pursuant to Sec.            -241,837     241,837          0          0          0          0          0          0          0       0
 1001(d)(2) of Division O of Public Law
 117-328..................................
10-year PAYGO Scorecard...................            0     913,423    241,837    241,837    241,837    241,837    241,837    241,837     54,818    -891
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IV. Legislative Revisions to the PAYGO Scorecards

    Section 1001(d)(2) of division O of Public Law 117-328, the 
Consolidated Omnibus Appropriations Act, 2023, states, ``For the 
purposes of the annual report issued pursuant to section 5 of the 
Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 934) after adjournment of 
the first session of the 118th Congress, and for determining whether a 
sequestration order is necessary under such section, the debit for the 
budget year on the 5-year scorecard, if any, and the 10-year scorecard, 
if any, shall be deducted from such scorecards in 2024 and added to 
such scorecards in 2025.'' Accordingly, both the 5- and 10-year 
scorecards deduct the debit from 2024 and add that debit to 2025.

V. Sequestration Order

    As shown on the scorecards, the budgetary effects of PAYGO 
legislation enacted in the first session of the 118th Congress, 
combined with section 1001(d)(2) of division O of Public Law 117-328, 
resulted in no costs on either the 5-year or the 10-year scorecard in 
the budget year, which is 2024 for the purposes of this Report. Because 
the costs for the budget year, as shown on the scorecards, were set to 
zero for the budget year, there is no ``debit'' on either scorecard 
under section 3 of the PAYGO Act, 2 U.S.C. 932, and a sequestration 
order is not required.\4\
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    \4\ Sequestration reductions pursuant to the Balanced Budget and 
Deficit Control Act (BBEDCA) Section 251A for 2024 were calculated 
and ordered in a separate report and are not affected by this 
determination. See: https://www.whitehouse.gov/wp-content/uploads/2023/03/BBEDCA_Sequestration_Report_and_Letter_3-13-2024.pdf.

[FR Doc. 2024-01706 Filed 1-26-24; 8:45 am]
BILLING CODE 3110-01-P