I 

114TH CONGRESS 

2D SESSION H. R. 5637 

To prevent a fiscal crisis by enacting legislation to balance the Federal 

budget through reductions of discretionary and mandatory spending. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 6, 2016 

Mr. SANFORD (for himself, Mr. PALMER, Mr. DUNCAN of South Carolina, Mr. 

MULVANEY, Mr. MEADOWS, Mr. DESJARLAIS, Mr. LABRADOR, Mr. 

GOSAR, Mr. RIBBLE, and Mr. GOHMERT) introduced the following bill; 

which was referred to the Committee on the Budget, and in addition to 

the Committee on Rules, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To prevent a fiscal crisis by enacting legislation to balance 

the Federal budget through reductions of discretionary 

and mandatory spending. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘One Percent Spending 

5 Reduction Act of 2016’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—Congress finds the following: 


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1 (1) The fiscal crisis faced by the Federal Gov2 ernment demands immediate action. 

3 (2) The dramatic growth in spending and debt 

4 in recent years threatens the economic and national 

5 security of the United States: 

6 (A) Federal spending has grown from 18 

7 percent of gross domestic product in 2001 to 

8 nearly 21 percent of gross domestic product in 

9 2015. 

10 (B) Total Federal debt exceeds 

11 $19,000,000,000,000 and is projected to in12 crease each year over the next 10 years. 

13 (C) Without action, the Federal Govern14 ment will continue to run massive deficits in the 

15 next decade and total Federal debt will rise to 

16 $29,000,000,000,000 by 2026. 

17 (D) Interest payments on this debt will 

18 soon rise to the point where balancing the 

19 budget as a matter of policy is beyond the reach 

20 of Congress. 

21 (3) Absent reform, the growth of Social Secu22 rity, Medicare, Medicaid, and other health-related 

23 spending will overwhelm all other Federal programs 

24 and consume all projected tax revenues. 


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1 (b) PURPOSE.—The purpose of this Act is to address 

2 the fiscal crisis by— 

3 (1) acting quickly to balance the Federal budg4 et and eliminate the parade of deficits and bal5 looning interest payments; 

6 (2) achieving balance by reducing spending 1 

7 percent per year until spending equals projected 

8 long-term revenues; and 

9 (3) reforming entitlement programs to ensure 

10 long-term fiscal stability and balance. 

11 SEC. 3. ESTABLISHMENT AND ENFORCEMENT OF SPEND12 ING CAPS. 

13 (a) OUTLAY CAPS.—The Balanced Budget and 

14 Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et 

15 seq.) is amended by inserting after section 253 the fol16 lowing: 

17 ‘‘SEC. 253A. ESTABLISHING OUTLAY CAPS. 

18 ‘‘(a) OUTLAY CAPS.—In this section, the term ‘outlay 

19 cap’ means: 

20 ‘‘(1) FISCAL YEAR 2017.—For fiscal year 2017, 

21 total outlays (less net interest payments) shall be 

22 not more than $3,645,000,000,000, less 1 percent. 

23 ‘‘(2) FISCAL YEAR 2018.—For fiscal year 2018, 

24 total outlays (less net interest payments) shall be 


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1 not more than the amount computed under para2 graph (1), less 1 percent. 

3 ‘‘(3) FISCAL YEAR 2019.—For fiscal year 2019, 

4 total outlays (less net interest payments) shall be 

5 not more than the amount computed under para6 graph (2), less 1 percent. 

7 ‘‘(4) FISCAL YEAR 2020.—For fiscal year 2020, 

8 total outlays (less net interest payments) shall be 

9 not more than the amount computed under para10 graph (3), less 1 percent. 

11 ‘‘(5) FISCAL YEAR 2021.—For fiscal year 2021, 

12 total outlays (less net interest payments) shall be 

13 not more than the amount computed under para14 graph (4), less 1 percent. 

15 ‘‘(6) FISCAL YEAR 2022 AND SUBSEQUENT FIS16 CAL YEARS.— 

17 ‘‘(A) IN GENERAL.—For fiscal year 2022 

18 and each fiscal year thereafter, total outlays 

19 shall be not more than 18 percent of the gross 

20 domestic product for that fiscal year, as esti21 mated by the Office of Management and Budg22 et prior to March of the previous fiscal year. 

23 ‘‘(B) LIMITATION.—Notwithstanding sub24 paragraph (A), for any fiscal year beginning 

25 with fiscal year 2023, total projected outlays 


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1 may not be less than total projected outlays for 

2 the preceding fiscal year. 

3 ‘‘(b) SEQUESTRATION.— 

4 ‘‘(1) IN GENERAL.— 

5 ‘‘(A) EXCESS SPENDING.—Not later than 

6 45 calendar days after the beginning of a fiscal 

7 year, the Office of Management and Budget 

8 shall prepare and the President shall order a 

9 sequestration to eliminate any excess outlay 

10 amount. 

11 ‘‘(B) DEFINITIONS.— 

12 ‘‘(i) FISCAL YEARS 2017 THROUGH

13 2021.—For each of fiscal years 2017 

14 through 2021 and for purposes of this sub15 section, the term ‘excess outlay amount’ 

16 means the amount by which total projected 

17 Federal outlays (less net interest pay18 ments) for a fiscal year exceeds the outlay 

19 cap for that fiscal year. 

20 ‘‘(ii) FISCAL YEAR 2022 AND SUBSE21 QUENT FISCAL YEARS.—For fiscal year 

22 2022 and each fiscal year thereafter and 

23 for purposes of this subsection, the term 

24 ‘excess outlay amount’ means the amount 

25 by which total projected Federal outlays 


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1 for a fiscal year exceeds the outlay cap for 

2 that fiscal year. 

3 ‘‘(2) SEQUESTRATION.— 

4 ‘‘(A) CBO PREVIEW REPORT.—On August 

5 15 of each year, the Congressional Budget Of6 fice shall issue a sequestration preview report 

7 as described in section 254(c)(4). 

8 ‘‘(B) OMB PREVIEW REPORT.—On August 

9 20 of each year, the Office of Management and 

10 Budget shall issue a sequestration preview re11 port as described in section 254(c)(4). 

12 ‘‘(C) FINAL REPORT.—On October 31 of 

13 each year, the Office of Management and Budg14 et shall issue a final sequestration report as de15 scribed in section 254(f)(3), which shall be ac16 companied by a Presidential order detailing uni17 form spending reductions equal to the excess 

18 outlay amount. 

19 ‘‘(D) PROCESS.—The reductions shall gen20 erally follow the process set forth in sections 

21 253 and 254, except as provided in this section. 

22 ‘‘(3) CONGRESSIONAL ACTION.—If the August 

23 20 report by the Office of Management and Budget 

24 projects a sequestration, the Committee on the 

25 Budget of the Senate and the Committee on the 


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1 Budget of the House of Representatives may report 

2 a resolution directing committees of their House to 

3 change the existing law to achieve the spending re4 ductions outlined in the August 20 report necessary 

5 to meet the outlay limits. 

6 ‘‘(c) NO EXEMPT PROGRAMS.—Section 255 and sec7 tion 256 shall not apply to this section or any sequestra8 tion order issued under this section, except that payments 

9 for net interest (budget function 900) shall be exempt 

10 from the spending reductions under sequestration. 

11 ‘‘(d) LOOK BACK.—If, after November 14, a bill re12 sulting in outlays for the fiscal year in progress is enacted 

13 that causes excess outlays, the excess outlay amount for 

14 the next fiscal year shall be increased by the amount or 

15 amounts of that breach.’’. 

16 (b) CONFORMING AMENDMENTS TO BBEDCA.— 

17 (1) SEQUESTRATION PREVIEW REPORTS.—Sec18 tion 254(c)(4) of the Balanced Budget and Emer19 gency Deficit Control Act of 1985 (2 U.S.C. 

20 904(c)(4)) is amended to read as follows: 

21 ‘‘(4) OUTLAY CAP SEQUESTRATION REPORTS.— 

22 The preview reports shall set forth for the budget 

23 year estimates for the following: 


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1 ‘‘(A)(i) For each of budget years 2017 

2 through 2021, total projected outlays (less net 

3 interest payments), less one percent. 

4 ‘‘(ii) For budget year 2022 and each sub5 sequent budget year, the estimated gross do6 mestic product for that budget year. 

7 ‘‘(B) The amount of reductions required 

8 under section 253A. 

9 ‘‘(C) The sequestration percentage nec10 essary to achieve the required reduction under 

11 section 253A.’’. 

12 (2) FINAL SEQUESTRATION REPORTS.—Section 

13 254(f)(3) of the Balanced Budget and Emergency 

14 Deficit Control Act of 1985 (2 U.S.C. 904(f)(3)) is 

15 amended to read as follows: 

16 ‘‘(3) OUTLAY CAPS SEQUESTRATION RE17 PORTS.—The final reports shall contain all the infor18 mation required in the outlay cap sequestration pre19 view reports. In addition, these reports shall contain, 

20 for the budget year, for each account to be seques21 tered, estimates of the baseline level of sequestrable 

22 budgetary resources and resulting outlays and the 

23 amount of budgetary sources to be sequestered and 

24 result in outlay reductions. The reports shall also 

25 contain estimates of the effects on outlays on the seVerDate Sep 11 2014 23:37 Jul 07, 2016 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5637.IH H5637

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1 questration of each outyear for direct spending pro2 grams.’’. 

3 (c) ENFORCEMENT.—Title III of the Congressional 

4 Budget Act of 1974 (2 U.S.C. 631 et seq.) is amended 

5 by adding after section 315 the following: 

6 ‘‘SEC. 316. ENFORCEMENT PROCEDURES. 

7 ‘‘(a) OUTLAY CAPS.—It shall not be in order in the 

8 House of Representatives or the Senate to consider any 

9 bill, joint resolution, amendment, amendment between the 

10 Houses, or conference report that includes any provision 

11 that would cause the most recently reported, current out12 lay cap set forth in section 253A of the Balanced Budget 

13 and Emergency Deficit Control Act of 1985 to be 

14 breached or increased. 

15 ‘‘(b) WAIVER OR SUSPENSION.— 

16 ‘‘(1) IN THE SENATE.—The provisions of this 

17 section may be waived or suspended in the Senate 

18 only by the affirmative vote of two-thirds of the 

19 Members, duly chosen and sworn. 

20 ‘‘(2) IN THE HOUSE.—The provisions of this 

21 section may be waived or suspended in the House of 

22 Representatives only by a rule or order proposing 

23 only to waive such provisions by an affirmative vote 

24 of two-thirds of the Members, duly chosen and 

25 sworn. 


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1 ‘‘(c) POINT OF ORDER PROTECTION.—In the House, 

2 it shall not be in order to consider a rule or order that 

3 waives the application of paragraph (2) of subsection (b). 

4 ‘‘(d) MOTION TO SUSPEND.—It shall not be in order 

5 for the Speaker to entertain a motion to suspend the appli6 cation of this section under clause 1 of rule XV.’’. 

7 SEC. 4. CONFORMING AMENDMENTS. 

8 The table of contents set forth in— 

9 (1) section 1(b) of the Congressional Budget 

10 and Impoundment Control Act of 1974 is amended 

11 by inserting after the item relating to section 315 

12 the following new item: 

‘‘Sec. 316. Enforcement procedures.’’; 

13 and 

14 (2) section 250(a) of the Balanced Budget and 

15 Emergency Deficit Control Act of 1985 is amended 

16 by inserting after the item relating to section 253 

17 the following new item: 

‘‘Sec. 253A. Establishing outlay caps.’’. 

18 SEC. 5. EFFECTIVE DATE. 

19 This Act and the amendments made by this Act shall 

20 apply to fiscal year 2017 and each fiscal year thereafter, 

21 including any reports and calculations required for imple22 mentation in fiscal year 2017. 

Æ 


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