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[Federal Register Volume 90, Number 19 (Thursday, January 30, 2025)]
[Notices]
[Pages 8539-8540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01937]

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OFFICE OF MANAGEMENT AND BUDGET

Notice; 2024 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 second 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 2025,\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, 2024 
at noon and January 3, 2025 at 11:57 a.m. (Pub. L. 118-35 through 
Pub. L. 118-224).
    \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 American Relief Act, 2025 (Public Law 118-158) set the 
balances on both scorecards to zero for all years. The change directed 
by Public Law 118-158 is discussed in more detail in section IV of this 
report.
    During the second 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). Seven 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 PAYGO Act, see 
Chapter 4, ``Budget Process,'' of the Analytical Perspectives volume of 
the 2025 President's Budget, found on the website of the U.S. 
Government Printing Office (https://www.govinfo.gov/app/collection/budget/2025/BUDGET-2025-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 second session of the 118th 
Congress began with balances of $1,697,668 million in 2025, $441,949 
million in 2026, $71,317 million in 2027, and -$1,188 million in 2028. 
The 10-year PAYGO scorecard for the second session of the 118th 
Congress began with balances of $913,423 million in 2025, $241,837 
million per year for 2026-3031, $54,818 million in 2032, and -$891 
million for 2033.
    Laws enacted during the second session of the 118th Congress 
created balances on the 5- and 10-year scorecards of -$230 million and 
-$275 million in each year, respectively. Public Law 118-158 set the 
balances in all years of both scorecards to zero at the end of the 
second session of the 118th Congress.
    In the second session of the 118th Congress, 46 laws were enacted 
that were determined to constitute PAYGO legislation. Of the 46 enacted 
PAYGO laws, 14 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:
     Public Law 118-38, Overtime Pay for Protective Services 
Act of 2023;
     Public Law 118-44, Disaster Assistance Deadlines Alignment 
Act;
     Public Law 118-47, Further Consolidated Appropriations 
Act, 2024;
     Public Law 118-50, Making emergency supplemental 
appropriations for the fiscal year ending September 30, 2024, and for 
other purposes;
     Public Law 118-63, FAA Reauthorization Act of 2024;
     Public Law 118-124, Fiscal Year 2024 Veterans Affairs 
Major Medical Facility Authorization Act;
     Public Law 118-146, VSO Equal Tax Treatment Act;
     Public Law 118-148, Federal Disaster Tax Relief Act of 
2023;
     Public Law 118-159, Servicemember Quality of Life

[[Page 8540]]

Improvement and National Defense Authorization Act for Fiscal Year 
2025;
     Public Law 118-164, Mountain View Corridor Completion Act;
     Public Law 118-183, Colorado River Salinity Control Fix 
Act;
     Public Law 118-185, Swanson and Hugh Butler Reservoirs 
Land Conveyances Act;
     Public Law 118-203, Federal Judiciary Stabilization Act of 
2024; and
     Public Law 118-210, Senator Elizabeth Dole 21st Century 
Veterans Healthcare and Benefits Improvement Act.
    In addition to the laws identified above, 32 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 second session of the 118th Congress 
with an emergency designation under the PAYGO Act.

B. Statutory Provisions Excluding Legislation From the Scorecards

    Seven laws enacted in the second 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 seven laws were excluded from the scorecards:
     Public Law 118-35, Further Additional Continuing 
Appropriations and Other Extensions Act, 2024;
     Public Law 118-40, Extension of Continuing Appropriations 
and Other Matters Act, 2024;
     Public Law 118-42, Consolidated Appropriations Act, 2024;
     Public Law 118-47, Further Consolidated Appropriations 
Act, 2024;
     Public Law 118-50, Making emergency supplemental 
appropriations for the fiscal year ending September 30, 2024, and for 
other purposes;
     Public Law 118-83, Continuing Appropriations and 
Extensions Act, 2025; and
     Public Law 118-158, American Relief Act, 2025.
    Additionally, Division A of Public Law 118-47 included a rescission 
of $20.2 billion of funding for the Internal Revenue Service (IRS) 
enforcement and compliance activities, which is estimated to result in 
decreases to revenue collections. This decrease in revenues is excluded 
from the PAYGO estimate by scoring rules established under the 
requirements of Section 252(d)(5) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.

III. PAYGO Scorecards

                                                           Statutory Pay-As-You-Go Scorecards
                                        [In millions of dollars; negative amounts portray decreases in deficits]
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                                              2025        2026        2027        2028        2029
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Second Session of the 118th Congress....         -230        -230        -230        -230        -230
Balances from Previous Sessions.........    1,697,668     441,949      71,317      -1,188           0
Change in balances pursuant to Sec.        -1,697,439    -441,720     -71,087       1,418         230
 21306(4) of Division B of Public Law
 118-158................................
5-year PAYGO Scorecard..................            0           0           0           0           0
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                                                 2025        2026        2027        2028        2029        2030        2031       2032    2033    2034
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Second Session of the 118th Congress....         -275        -275        -275        -275        -275        -275        -275       -275    -275    -275
Balances from Previous Sessions.........      913,423     241,837     241,837     241,837     241,837     241,837     241,837     54,818    -891       0
Change in balances pursuant to Sec.          -913,148    -241,562    -241,562    -241,562    -241,562    -241,562    -241,562    -54,543   1,166     275
 21306(4) of Division B of Public Law
 118-158................................
10-year PAYGO Scorecard.................            0           0           0           0           0           0           0          0       0       0
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IV. Legislative Revisions to the PAYGO Scorecards

    Section 21306(4) of Division B of Public Law 118-158, the American 
Relief Act, 2025, states, ``Effective on the date of the adjournment of 
the second session of the 118th Congress, and 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 such adjournment and for 
determining whether a sequestration order is necessary under such 
section, the balances on the PAYGO scorecards established pursuant to 
paragraphs (4) and (5) of section 4(d) of such Act shall be zero.'' 
Accordingly, all years on both the 5- and 10-year scorecards are zero.

V. Sequestration Order

    As shown on the scorecards, the budgetary effects of PAYGO 
legislation enacted in the second session of the 118th Congress, 
combined with section 21306(4) of Division B of Public Law 118-158, 
resulted in no costs on either the 5-year or the 10-year scorecard in 
the budget year, which is 2025 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 2025 were calculated 
and ordered in a separate report and are not affected by this 
determination. See: https://bidenwhitehouse.archives.gov/wp-content/uploads/2024/03/BBEDCA_251A_Sequestration_Report_FY2025.pdf.

[FR Doc. 2025-01937 Filed 1-29-25; 8:45 am]
BILLING CODE 3110-01-P
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