I 

109TH CONGRESS 

1ST SESSION H. R. 2290 

To reform Federal budget procedures, to impose spending safeguards, to 

combat waste, fraud, and abuse, to account for accurate Government 

agency costs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2005 

Mr. HENSARLING (for himself, Mr. RYAN of Wisconsin, Mr. CHOCOLA, Mr. 

COX, Mr. AKIN, Mr. BARRETT of South Carolina, Mr. BARTLETT of 

Maryland, Mr. BEAUPREZ, Mr. BISHOP of Utah, Mrs. BLACKBURN, Mr. 

BRADY of Texas, Mr. BURGESS, Mr. BURTON of Indiana, Mr. CANNON, 

Mr. CARTER, Mr. CHABOT, Mr. COLE of Oklahoma, Mrs. CUBIN, Mr. 

MARIO DIAZ-BALART of Florida, Mr. ENGLISH of Pennsylvania, Mr. 

FEENEY, Mr. FLAKE, Ms. FOXX, Mr. FRANKS of Arizona, Mr. GARRETT

of New Jersey, Mr. GINGREY, Mr. GOHMERT, Mr. GOODE, Mr. GUTKNECHT, Ms. HART, Mr. HERGER, Mr. HOEKSTRA, Mr. HOSTETTLER, 

Mr. JINDAL, Mr. SAM JOHNSON of Texas, Mr. JONES of North Carolina, 

Mr. KING of Iowa, Mr. KLINE, Mr. MACK, Mr. MCHENRY, Mr. MILLER

of Florida, Mrs. MUSGRAVE, Mrs. MYRICK, Mr. NEUGEBAUER, Mr. NORWOOD, Mr. OTTER, Mr. PENCE, Mr. RADANOVICH, Mr. ROHRABACHER, 

Mr. ROYCE, Mr. RYUN of Kansas, Mr. SESSIONS, Mr. SHADEGG, Mr. 

SOUDER, Mr. TANCREDO, Mr. TURNER, Mr. WESTMORELAND, Mr. 

HAYWORTH, and Mr. BACHUS) introduced the following bill; which was 

referred to the Committee on the Budget, for a period ending not later 

than July 11, 2005, and in addition to the Committees on Rules, Ways 

and Means, Appropriations, and Government Reform, 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 reform Federal budget procedures, to impose spending 

safeguards, to combat waste, fraud, and abuse, to ac-
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count for accurate Government agency costs, and for 

other purposes. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Family Budget Protection Act of 2005’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

Sec. 2. Effective date. 

TITLE I—A SIMPLE AND BINDING BUDGET 

Subtitle A—Joint Budget Resolutions 

Sec. 101. Declaration of purposes for the Budget Act. 

Sec. 102. The timetable. 

Sec. 103. Annual joint resolutions on the budget. 

Sec. 104. Budget required before spending bills may be considered 

Sec. 105. Amendments to effectuate joint resolutions on the budget. 

Subtitle B—Budgeting for Emergencies 

Sec. 111. Purpose. 

Sec. 112. Repeal of adjustments for emergencies. 

Sec. 113. OMB emergency criteria. 

Sec. 114. Development of guidelines for application of emergency definition. 

Sec. 115. Reserve fund for emergencies in President’s budget. 

Sec. 116. Adjustments and reserve fund for emergencies in joint budget resolutions. 

Sec. 117. Application of section 306 to emergencies in excess of amounts in reserve fund. 

Sec. 118. Up-to-date tabulations. 

Sec. 119. Prohibition on amendments to emergency reserve fund. 

Subtitle C—Biennial Budget Option 

Sec. 121. Effective date. 

Sec. 122. Revision of timetable. 

Sec. 123. Amendments to the Congressional Budget and Impoundment Control 

Act of 1974. 

Sec. 124. Amendments to Rules of House of Representatives. 

Sec. 125. Amendments to title 31, United States Code. 

Sec. 126. Two-year appropriations; title and style of appropriation Acts. 

Sec. 127. Multiyear authorizations. 

Sec. 128. Government strategic and performance plans on a biennial basis. 

Sec. 129. Biennial appropriation bills. 
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Sec. 130. Assistance by Federal agencies to standing committees of the Senate 

and the House of Representatives. 

Subtitle D—Prevention of Government Shutdown 

Sec. 141. Amendment to title 31. 

Subtitle E—The Baseline 

Sec. 151. Elimination of inflation adjustment. 

Sec. 152. The President’s budget. 

Sec. 153. The congressional budget. 

Sec. 154. Congressional Budget Office reports to committees. 

Sec. 155. Treatment of emergencies. 

TITLE II—PUTTING A LID ON THE FEDERAL BUDGET 

Subtitle A—Spending Safeguards on the Growth of Entitlements and 

Mandatories 

Sec. 201. Spending caps on growth of entitlements and mandatories. 

Sec. 202. Exempt programs and activities. 

Sec. 203. Exceptions, limitations, and special rules. 

Sec. 204. Point of order. 

Sec. 205. Technical and conforming amendments. 

Sec. 206. Establishment of Budget Protection Mandatory Account. 

Subtitle B—Discretionary Spending Limits 

Sec. 211. Enforcing discretionary spending limits. 

Sec. 212. Establishment of Budget Protection Discretionary Account. 

Sec. 213. Revenue adjustment. 

Subtitle C—Long-term Unfunded Obligations 

Sec. 221. Long-term unfunded obligations. 

Sec. 222. Points of order. 

Sec. 223. Social security. 

TITLE III—COMBATING WASTE, FRAUD, AND ABUSE. 

Subtitle A—Sunsetting 

Sec. 301. Reauthorization of discretionary programs and unearned entitlements. 

Sec. 302. Point of order. 

Sec. 303. Decennial sunsetting. 

Subtitle B—Enhanced Rescissions of Budget Authority Identified by the 

President as Wasteful Spending 

Sec. 311. Enhanced consideration of certain proposed rescissions. 

Subtitle C—Commission to Eliminate Waste, Fraud, and Abuse 

Sec. 331. Establishment of Commission. 

Sec. 332. Duties of the Commission. 

Sec. 333. Powers of the Commission. 

Sec. 334. Commission personnel matters. 
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Sec. 335. Termination of the Commission. 

Sec. 336. Congressional consideration of reform proposals. 

Sec. 337. Authorization of appropriations. 

TITLE IV—TRUTH IN ACCOUNTING 

Subtitle A—Accrual Funding of Pensions and Retirement Pay for Federal 

Employees and Uniformed Services Personnel 

Sec. 401. Civil Service Retirement System. 

Sec. 402. Central Intelligence Agency Retirement and Disability System. 

Sec. 403. Foreign Service Retirement and Disability System. 

Sec. 404. Public Health Service Commissioned Corps Retirement System. 

Sec. 405. National Oceanic and Atmospheric Administration Commissioned Officer Corps Retirement System. 

Sec. 406. Coast Guard Military Retirement System. 

Subtitle B—Accrual Funding of Post-Retirement Health Benefits Costs for 

Federal Employees 

Sec. 411. Federal employees health benefits fund. 

Sec. 412. Funding uniformed services health benefits for all retirees. 

Sec. 413. Effective date. 

Subtitle C—Public Debt Limit Reform 

Sec. 421. Findings. 

Sec. 422. Purpose. 

Sec. 423. Limit on public debt. 

Sec. 424. Repeal of the Gephardt rule. 

Subtitle D—Risk-Assumed Budgeting 

Sec. 431. Federal insurance programs. 

TITLE V—MAINTAINING A COMMITMENT TO THE FAMILY 

BUDGET 

Subtitle A—Further Enforcement Amendments 

Sec. 501. Super-majority points of order in the House of Representatives and 

the Senate. 

Sec. 502. Budget resolution enforcement point of order. 

Sec. 503. Point of order waiver protection. 

Subtitle B—The Byrd Rule 

Sec. 511. Limitation on Byrd Rule. 

Subtitle C—Treatment of Extraneous Appropriations in Omnibus 

Appropriation Measures 

Sec. 521. Treatment of extraneous appropriations. 
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1 SEC. 2. EFFECTIVE DATE. 

2 Except as otherwise specifically provided, this Act 

3 and the amendments made by this Act shall become effec4 tive on the date of enactment of this Act and shall apply 

5 with respect to fiscal years beginning after September 30, 

6 2006. 

7 TITLE I—A SIMPLE AND BINDING 

8 BUDGET 

9 Subtitle A—Joint Budget 

10 Resolutions 

11 SEC. 101. DECLARATION OF PURPOSES FOR THE BUDGET 

12 ACT. 

13 Paragraphs (1) and (2) of section 2 of the Congres14 sional Budget and Impoundment Control Act of 1974 are 

15 amended to read as follows: 

16 ‘‘(1) to assure effective control over the budg17 etary process; 

18 ‘‘(2) to facilitate the determination each year of 

19 the appropriate level of Federal revenues and ex20 penditures by the Congress and the President;’’. 

21 SEC. 102. THE TIMETABLE. 

22 Section 300 of the Congressional Budget Act of 1974 

23 is amended to read as follows: 

24 ‘‘TIMETABLE

25 ‘‘SEC. 300. The timetable with respect to the congres26 sional budget process for any fiscal year is as follows: 
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‘‘On or before: Action to be completed: 

First Monday in February ............ President submits his budget. 

February 15 ................................... Congressional Budget Office submits 

report to Budget Committees. 

Not later than 6 weeks after President submits budget.Committees submit views and estimates to Budget Committees. 

April 1 ........................................... Budget Committees report joint resolution on the budget. 

April 15 ......................................... Congress completes action on joint 

resolution on the budget. 

June 10 ......................................... House Appropriations Committee reports last annual appropriation bill. 

June 15 ......................................... Congress completes action on reconciliation legislation. 

June 30 ......................................... House completes action on annual appropriation bills. 

October 1 ....................................... Fiscal year begins.’’. 

1 SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET. 

2 (a) CONTENT OF ANNUAL JOINT RESOLUTIONS ON

3 THE BUDGET.—Section 301(a)(4) of the Congressional 

4 Budget Act of 1974 is amended to read as follows: 

5 ‘‘(4) subtotals of new budget authority and out6 lays for nondefense discretionary spending, defense 

7 discretionary spending, direct spending (excluding 

8 interest), and interest; and for emergencies (for the 

9 reserve fund in section 316(b) and for military oper10 ations in section 316(c));’’. 

11 (b) ADDITIONAL MATTERS IN JOINT RESOLUTION.— 

12 Section 301(b) of the Congressional Budget Act of 1974 

13 is amended as follows: 

14 (1) Strike paragraphs (1), (4), and (6) through 

15 (9). 

16 (2) Redesignate paragraphs (2), (3), and (5) 

17 accordingly, insert ‘‘and’’ after the new paragraph 
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1 (1), and in the new paragraph (2) strike the semi2 colon and insert a period. 

3 (c) REQUIRED CONTENTS OF REPORT.—Section 

4 301(e)(2) of the Congressional Budget Act of 1974 is 

5 amended as follows: 

6 (1) Redesignate subparagraphs (A), (B), (C), 

7 (D), (E), and (F) as subparagraphs (B), (C), (E), 

8 (F), (H), and (I), respectively. 

9 (2) In subparagraph (C) (as redesignated), 

10 strike ‘‘mandatory’’ and insert ‘‘direct spending’’. 

11 (3) After subparagraph (C) (as redesignated), 

12 insert the following new subparagraph: 

13 ‘‘(D) a measure, as a percentage of gross 

14 domestic product, of total outlays, total Federal 

15 revenues, the surplus or deficit, and new out16 lays for nondefense discretionary spending, de17 fense spending, and direct spending as set forth 

18 in such resolution;’’. 

19 (4) After subparagraph (F) (as redesignated), 

20 insert the following new subparagraph: 

21 ‘‘(G) if the joint resolution on the budget 

22 includes any allocation to a committee other 

23 than the Committee on Appropriations of levels 

24 in excess of current law levels, a justification 

25 for not subjecting any program, project, or ac-
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1 tivity (for which the allocation is made) to an2 nual discretionary appropriations;’’. 

3 (d) ADDITIONAL CONTENTS OF REPORT.—Section 

4 301(e)(3) of the Congressional Budget Act of 1974 is 

5 amended as follows: 

6 (1) Redesignate subparagraphs (A) and (B) as 

7 subparagraphs (B) and (C), respectively, strike sub8 paragraphs (C) and (D), and redesignate subpara9 graph (E) as subparagraph (D) and strike the pe10 riod and insert ‘‘; and’’. 

11 (2) Before subparagraph (B), insert the fol12 lowing new subparagraph: 

13 ‘‘(A) new budget authority and outlays for 

14 each major functional category, based on alloca15 tions of the total levels set forth pursuant to 

16 subsection (a)(1);’’. 

17 (3) At the end, add the following new subpara18 graph: 

19 ‘‘(E) set forth, if required by subsection 

20 (f), the calendar year in which, in the opinion 

21 of the Congress, the goals for reducing unem22 ployment set forth in section 4(b) of the Em23 ployment Act of 1946 should be achieved.’’. 

24 (e) PRESIDENT’S BUDGET SUBMISSION TO THE CON25 GRESS.—(1) The first two sentences of section 1105(a) 
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1 of title 31, United States Code, are amended to read as 

2 follows: 

3 ‘‘On or after the first Monday in January but not later 

4 than the first Monday in February of each year the Presi5 dent shall submit a budget of the United States Govern6 ment for the following fiscal year which shall set forth the 

7 following levels: 

8 ‘‘(A) totals of new budget authority and out9 lays; 

10 ‘‘(B) total Federal revenues and the amount, if 

11 any, by which the aggregate level of Federal reve12 nues should be increased or decreased by bills and 

13 resolutions to be reported by the appropriate com14 mittees; 

15 ‘‘(C) the surplus or deficit in the budget; 

16 ‘‘(D) subtotals of new budget authority and 

17 outlays for nondefense discretionary spending, de18 fense discretionary spending, direct spending (ex19 cluding interest), and interest, and for emergencies 

20 (for the reserve fund in section 316(b) and for mili21 tary operations in section 316(c)); and 

22 ‘‘(E) the public debt. 

23 Each budget submission shall include a budget message 

24 and summary and supporting information and, as a sepa25 rately delineated statement, the levels required in the pre-
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1 ceding sentence for at least each of the 4 ensuing fiscal 

2 years.’’. 

3 (2) The third sentence of section 1105(a) of title 31, 

4 United States Code, is amended by inserting ‘‘submission’’ 

5 after ‘‘budget’’. 

6 (f) LIMITATION ON CONTENTS OF BUDGET RESOLU7 TIONS.—Section 305 of the Congressional Budget Act of 

8 1974 is amended by adding at the end the following new 

9 subsection: 

10 ‘‘(e) LIMITATION ON CONTENTS.—(1) It shall not be 

11 in order in the House of Representatives or in the Senate 

12 to consider any joint resolution on the budget or any 

13 amendment thereto or conference report thereon that con14 tains any matter referred to in paragraph (2). 

15 ‘‘(2) Any joint resolution on the budget or any 

16 amendment thereto or conference report thereon that con17 tains any matter not permitted in section 301(a) or (b) 

18 shall not be treated in the House of Representatives or 

19 the Senate as a budget resolution under subsection (a) or 

20 (b) or as a conference report on a budget resolution under 

21 subsection (c) of this section.’’. 

22 SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS 

23 MAY BE CONSIDERED 

24 (a) AMENDMENTS TO SECTION 302.—Section 302 of 

25 the Congressional Budget Act of 1974 is amended— 
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1 (1) in subsection (a), by striking paragraph (5); 

2 and 

3 (2) in subsection (f)(1)(A), by striking ‘‘as re4 ported’’. 

5 (b) AMENDMENTS TO SECTION 303 AND CON6 FORMING AMENDMENTS.—(1) Section 303 of the Con7 gressional Budget Act of 1974 is amended by striking ‘‘(a) 

8 IN GENERAL.—’’, by striking ‘‘to become effective’’ in 

9 paragraph (1), and by striking subsections (b) and (c); 

10 and 

11 (2) by striking its section heading and inserting the 

12 following new section heading: ‘‘CONSIDERATION OF

13 BUDGET-RELATED LEGISLATION BEFORE BUDGET BE14 COMES LAW’’. 

15 (c) ADDITIONAL AMENDMENTS.—(1) Section 

16 302(g)(1) of the Congressional Budget Act of 1974 is 

17 amended by striking ‘‘and, after April 15, section 303’’. 

18 (2)(A) Section 904(c)(1) of the Congressional Budget 

19 Act of 1974 is amended by inserting ‘‘303,’’ before 

20 ‘‘305(b)(2),’’. 

21 (B) Section 904(d)(2) of the Congressional Budget 

22 Act of 1974 is amended by inserting ‘‘303,’’ before 

23 ‘‘305(b)(2),’’. 

24 (d) EXPEDITED PROCEDURES UPON VETO OF JOINT

25 RESOLUTION ON THE BUDGET.—(1) Title III of the Con-
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1 gressional Budget Act of 1974 (as amended by section 

2 116) is further amended by adding after section 316 the 

3 following new section: 

4 ‘‘EXPEDITED PROCEDURES UPON VETO OF JOINT

5 RESOLUTION ON THE BUDGET

6 ‘‘SEC. 317. (a) SPECIAL RULE.—If the President ve7 toes a joint resolution on the budget for a fiscal year, the 

8 majority leader of the House of Representatives or Senate 

9 (or his designee) may introduce a concurrent resolution 

10 on the budget or joint resolution on the budget for such 

11 fiscal year. If the Committee on the Budget of either 

12 House fails to report such concurrent or joint resolution 

13 referred to it within five calendar days (excluding Satur14 days, Sundays, or legal holidays except when that House 

15 of Congress is in session) after the date of such referral, 

16 the committee shall be automatically discharged from fur17 ther consideration of such resolution and such resolution 

18 shall be placed on the appropriate calendar. 

19 ‘‘(b) PROCEDURE IN THE HOUSE OF REPRESENTA20 TIVES AND THE SENATE.— 

21 ‘‘(1) Except as provided in paragraph (2), the 

22 provisions of section 305 for the consideration in the 

23 House of Representatives and in the Senate of joint 

24 resolutions on the budget and conference reports 

25 thereon shall also apply to the consideration of con-
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1 current resolutions on the budget introduced under 

2 subsection (a) and conference reports thereon. 

3 ‘‘(2) Debate in the Senate on any concurrent 

4 resolution on the budget or joint resolution on the 

5 budget introduced under subsection (a), and all 

6 amendments thereto and debatable motions and ap7 peals in connection therewith, shall be limited to not 

8 more than 10 hours and in the House such debate 

9 shall be limited to not more than 3 hours. 

10 ‘‘(c) CONTENTS OF CONCURRENT RESOLUTIONS.— 

11 Any concurrent resolution on the budget introduced under 

12 subsection (a) shall be in compliance with section 301. 

13 ‘‘(d) EFFECT OF CONCURRENT RESOLUTION ON THE

14 BUDGET.—Notwithstanding any other provision of this 

15 title, whenever a concurrent resolution on the budget de16 scribed in subsection (a) is agreed to, then the aggregates, 

17 allocations, and reconciliation directives (if any) contained 

18 in the report accompanying such concurrent resolution or 

19 in such concurrent resolution shall be considered to be the 

20 aggregates, allocations, and reconciliation directives for all 

21 purposes of sections 302, 303, and 311 for the applicable 

22 fiscal years and such concurrent resolution shall be 

23 deemed to be a joint resolution for all purposes of this 

24 title and the Rules of the House of Representatives and 

25 any reference to the date of enactment of a joint resolution 
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1 on the budget shall be deemed to be a reference to the 

2 date agreed to when applied to such concurrent resolu3 tion.’’. 

4 (2) The table of contents set forth in section 1(b) of 

5 the Congressional Budget and Impoundment Control Act 

6 of 1974 is amended by inserting after the item relating 

7 to section 316 the following new item: 

‘‘Sec. 317. Expedited procedures upon veto of joint resolution on the budget.’’. 

8 SEC. 105. AMENDMENTS TO EFFECTUATE JOINT RESOLU9 TIONS ON THE BUDGET. 

10 (a) DEFINITION.—Paragraph (4) of section 3 of the 

11 Congressional Budget Act of 1974 is amended to read as 

12 follows: 

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

14 means— 

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

16 budget for the United States Government for a 

17 fiscal year as provided in section 301; and 

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

19 budget for the United States Government for a 

20 fiscal year as described in section 304.’’. 

21 (b) ADDITIONAL AMENDMENTS TO THE CONGRES22 SIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF

23 1974.—(1)(A) Sections 301, 302, 303, 305, 308, 310, 

24 311, 312, 314, 405, and 904 of the Congressional Budget 

25 Act of 1974 (2 U.S.C. 621 et seq.) are amended by strik-
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1 ing ‘‘concurrent’’ each place it appears and inserting 

2 ‘‘joint’’. 

3 (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 

4 310(d)(1) of the Congressional Budget Act of 1974 are 

5 amended by striking ‘‘most recently agreed to concurrent 

6 resolution on the budget’’ each place it occurs and insert7 ing ‘‘most recently enacted joint resolution on the budget 

8 or agreed to concurrent resolution on the budget (as appli9 cable)’’. 

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

11 by striking ‘‘adoption of concurrent resolution’’ and insert12 ing ‘‘joint resolutions’’; and 

13 (iii) Section 304 of such Act is amended to read as 

14 follows: 

15 ‘‘PERMISSIBLE REVISIONS OF BUDGET RESOLUTIONS

16 ‘‘SEC. 304. At any time after the joint resolution on 

17 the budget for a fiscal year has been enacted pursuant 

18 to section 301, and before the end of such fiscal year, the 

19 two Houses and the President may enact a joint resolution 

20 on the budget which revises or reaffirms the joint resolu21 tion on the budget for such fiscal year most recently en22 acted.’’. 

23 (C) Sections 302, 303, 310, and 311, of such Act 

24 are amended by striking ‘‘agreed to’’ each place it appears 

25 and by inserting ‘‘enacted’’. 
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1 (2)(A) Paragraph (4) of section 3 of the Congres2 sional Budget and Impoundment Control Act of 1974 is 

3 amended by striking ‘‘concurrent’’ each place it appears 

4 and by inserting ‘‘joint’’. 

5 (B) The table of contents set forth in section 1(b) 

6 of such Act is amended— 

7 (i) in the item relating to section 301, by strik8 ing ‘‘adoption of concurrent resolution’’ and insert9 ing ‘‘joint resolutions’’; 

10 (ii) by striking the item relating to section 303 

11 and inserting the following: 

‘‘Sec. 303. Consideration of budget-related legislation before budget becomes 

law.’’; 

12 (iii) by striking ‘‘concurrent’’ and inserting 

13 ‘‘joint’’ in the item relating to section 305. 

14 (c) CONFORMING AMENDMENTS TO THE RULES OF

15 THE HOUSE OF REPRESENTATIVES.—Clauses 1(e)(1), 

16 4(a)(4), 4(b)(2), 4(f)(1)(A), and 4(f)(2) of rule X, clause 

17 10 of rule XVIII, and clause 10 of rule XX of the Rules 

18 of the House of Representatives are amended by striking 

19 ‘‘concurrent’’ each place it appears and inserting ‘‘joint’’. 

20 (d) CONFORMING AMENDMENTS TO THE BALANCED

21 BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF

22 1985.—Section 258C(b)(1) of the Balanced Budget and 

23 Emergency Deficit Control Act of 1985 (2 U.S.C. 
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1 907d(b)(1)) is amended by striking ‘‘concurrent’’ and in2 serting ‘‘joint’’. 

3 (e) CONFORMING AMENDMENTS TO SECTION 310 

4 REGARDING RECONCILIATION DIRECTIVES.—(1) The side 

5 heading of section 310(a) of the Congressional Budget Act 

6 of 1974 (as amended by section 105(b)) is further amend7 ed by inserting ‘‘JOINT EXPLANATORY STATEMENT AC8 COMPANYING CONFERENCE REPORT ON’’ before ‘‘JOINT’’. 

9 (2) Section 310(a) of such Act is amended by striking 

10 ‘‘A’’ and inserting ‘‘The joint explanatory statement ac11 companying the conference report on a’’. 

12 (3) The first sentence of section 310(b) of such Act 

13 is amended by striking ‘‘If’’ and inserting ‘‘If the joint 

14 explanatory statement accompanying the conference re15 port on’’. 

16 (4) Section 310(c)(1) of such Act is amended by in17 serting ‘‘the joint explanatory statement accompanying 

18 the conference report on’’ after ‘‘pursuant to’’. 

19 (f) CONFORMING AMENDMENTS TO SECTION 3 RE20 GARDING DIRECT SPENDING.—Section 3 of the Congres21 sional Budget and Impoundment Control Act of 1974 is 

22 amended by adding at the end the following new para23 graph: 

24 ‘‘(11) The term ‘direct spending’ has the mean25 ing given to such term in section 250(c)(8) of the 
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1 Balanced Budget and Emergency Deficit Control 

2 Act of 1985.’’. 

3 Subtitle B—Budgeting for 

4 Emergencies 

5 SEC. 111. PURPOSE. 

6 The purposes of this subtitle are to— 

7 (1) develop budgetary and fiscal procedures for 

8 emergencies; 

9 (2) subject spending for emergencies to budg10 etary procedures and controls; and 

11 (3) establish criteria for determining compliance 

12 with emergency requirements. 

13 SEC. 112. REPEAL OF ADJUSTMENTS FOR EMERGENCIES. 

14 (a) ELIMINATION OF EMERGENCY DESIGNATION.— 

15 Sections 251(b)(2)(A), 252(e), and 252(d)(4)(B) of the 

16 Balanced Budget and Emergency Deficit Control Act of 

17 1985 are repealed. 

18 (b) ELIMINATION OF EMERGENCY ADJUSTMENTS.— 

19 Section 314(b) of the Congressional Budget Act of 1974 

20 is amended by striking paragraph (1) and by redesig21 nating paragraphs (2) through (5) as paragraphs (1) 

22 through (4), respectively. 

23 (c) CONFORMING AMENDMENT.—Clause 2 of rule 

24 XXI of the Rules of the House of Representatives is 
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1 amended by repealing paragraph (e) and by redesignating 

2 paragraph (f) as paragraph (e). 

3 SEC. 113. OMB EMERGENCY CRITERIA. 

4 DEFINITION OF EMERGENCY.—Section 3 of the Con5 gressional Budget and Impoundment Control Act of 1974 

6 (as amended by section 105(e)) is further amended by 

7 adding at the end the following new paragraph: 

8 ‘‘(12)(A) The term ‘emergency’ means a situa9 tion that— 

10 ‘‘(i) requires new budget authority and 

11 outlays (or new budget authority and the out12 lays flowing therefrom) for the prevention or 

13 mitigation of, or response to, loss of life or 

14 property, or a threat to national security; and 

15 ‘‘(ii) is unanticipated. 

16 ‘‘(B) As used in subparagraph (A), the term 

17 ‘unanticipated’ means that the situation is— 

18 ‘‘(i) sudden, which means quickly coming 

19 into being or not building up over time; 

20 ‘‘(ii) urgent, which means a pressing and 

21 compelling need requiring immediate action; 

22 ‘‘(iii) unforeseen, which means not pre23 dicted or anticipated as an emerging need; and 

24 ‘‘(iv) temporary, which means not of a per25 manent duration.’’. 
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1 (b) CONFORMING AMENDMENT.—The term ‘emer2 gency’ has the meaning given to such term in section 3 

3 of the Congressional Budget and Impoundment Control 

4 Act of 1974.’’. 

5 SEC. 114. DEVELOPMENT OF GUIDELINES FOR APPLICA6 TION OF EMERGENCY DEFINITION. 

7 Not later than 5 months after the date of enactment 

8 of this Act, the chairmen of the Committees on the Budget 

9 (in consultation with the President) shall, after consulting 

10 with the chairmen of the Committees on Appropriations 

11 and applicable authorizing committees of their respective 

12 Houses and the Directors of the Congressional Budget Of13 fice and the Office of Management and Budget, jointly 

14 publish in the Congressional Record guidelines for applica15 tion of the definition of emergency set forth in section 

16 3(12) of the Congressional Budget and Impoundment 

17 Control Act of 1974. 

18 SEC. 115. RESERVE FUND FOR EMERGENCIES IN PRESI19 DENT’S BUDGET. 

20 Section 1105(f) of title 31, United States Code is 

21 amended by adding at the end the following new sen22 tences: ‘‘Such budget submission shall also comply with 

23 the requirements of subsections (b) and (c) of section 316 

24 of the Congressional Budget Act of 1974 and, in the case 

25 of any budget authority requested for an emergency, such 
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1 submission shall include a detailed justification of why 

2 such emergency is an emergency within the meaning of 

3 section 3(12) of the Congressional Budget Act of 1974.’’. 

4 SEC. 116. ADJUSTMENTS AND RESERVE FUND FOR EMER5 GENCIES IN JOINT BUDGET RESOLUTIONS. 

6 (a) EMERGENCIES.—Title III of the Congressional 

7 Budget Act of 1974 is amended by adding at the end the 

8 following new section: 

9 ‘‘EMERGENCIES

10 ‘‘SEC. 316. (a) ADJUSTMENTS.— 

11 ‘‘(1) IN GENERAL.—After the reporting of a bill 

12 or joint resolution or the submission of a conference 

13 report thereon that provides budget authority for 

14 any emergency as identified pursuant to subsection 

15 (d) that is not covered by subsection (c)— 

16 ‘‘(A) the chairman of the Committee on 

17 the Budget of the House of Representatives or 

18 the Senate shall determine and certify, pursu19 ant to the guidelines referred to in section 114 

20 of the Family Budget Protection Act of 2005, 

21 the portion (if any) of the amount so specified 

22 that is for an emergency within the meaning of 

23 section 3(12); and 

24 ‘‘(B) such chairman shall make the adjust25 ment set forth in paragraph (2) for the amount 

26 of new budget authority (or outlays) in that 
22 

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1 measure and the outlays flowing from that 

2 budget authority. 

3 ‘‘(2) MATTERS TO BE ADJUSTED.—The adjust4 ments referred to in paragraph (1) are to be made 

5 to the allocations made pursuant to the appropriate 

6 joint resolution on the budget pursuant to section 

7 302(a) and shall be in an amount not to exceed the 

8 amount reserved for emergencies pursuant to the re9 quirements of subsection (b). 

10 ‘‘(b) RESERVE FUND FOR NONMILITARY EMER11 GENCIES.—The amount set forth in the reserve fund for 

12 emergencies for budget authority and outlays for a fiscal 

13 year pursuant to section 301(a)(4) shall equal— 

14 ‘‘(1) the average of the enacted levels of budget 

15 authority for emergencies (other than those covered 

16 by subsection (c)) in the 5 fiscal years preceding the 

17 current year; and 

18 ‘‘(2) the average of the levels of outlays for 

19 emergencies in the 5 fiscal years preceding the cur20 rent year flowing from the budget authority referred 

21 to in paragraph (1), but only in the fiscal year for 

22 which such budget authority first becomes available 

23 for obligation. 

24 ‘‘(c) TREATMENT OF EMERGENCIES TO FUND CER25 TAIN MILITARY OPERATIONS.—Whenever the Committee 
23 

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1 on Appropriations reports any bill or joint resolution that 

2 provides budget authority for any emergency that is a 

3 threat to national security and the funding of which car4 ries out a military operation authorized by a declaration 

5 of war or a joint resolution authorizing the use of military 

6 force (or economic assistance funding in furtherance of 

7 such operation) and the report accompanying that bill or 

8 joint resolution, pursuant to subsection (d), identifies any 

9 provision that increases outlays or provides budget author10 ity (and the outlays flowing therefrom) for such emer11 gency, the enactment of which would cause the total 

12 amount of budget authority or outlays provided for emer13 gencies for the budget year in the joint resolution on the 

14 budget (pursuant to section 301(a)(4)) to be exceeded: 

15 ‘‘(A) Such bill or joint resolution shall be re16 ferred to the Committee on the Budget of the House 

17 or the Senate, as the case may be, with instructions 

18 to report it without amendment, other than that 

19 specified in subparagraph (B), within 5 legislative 

20 days of the day in which it is reported from the orig21 inating committee. If the Committee on the Budget 

22 of either House fails to report a bill or joint resolu23 tion referred to it under this subparagraph within 

24 such 5-day period, the committee shall be automati25 cally discharged from further consideration of such 
24 

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1 bill or joint resolution and such bill or joint resolu2 tion shall be placed on the appropriate calendar. 

3 ‘‘(B) An amendment to such a bill or joint reso4 lution referred to in this subsection shall only consist 

5 of an exemption from section 251 of the Balanced 

6 Budget and Emergency Deficit Control Act of 1985 

7 of all or any part of the provisions that provide 

8 budget authority (and the outlays flowing therefrom) 

9 for such emergency if the committee determines, 

10 pursuant to the guidelines referred to in section 114 

11 of the Family Budget Protection Act of 2005, that 

12 such budget authority is for an emergency within 

13 the meaning of section 3(12). 

14 ‘‘(C) If such a bill or joint resolution is reported 

15 with an amendment specified in subparagraph (B) 

16 by the Committee on the Budget of the House of 

17 Representatives or the Senate, then the budget au18 thority and resulting outlays that are the subject of 

19 such amendment shall not be included in any deter20 minations under section 302(f) or 311(a) for any 

21 bill, joint resolution, amendment, motion, or con22 ference report. 

23 ‘‘(d) COMMITTEE NOTIFICATION OF EMERGENCY

24 LEGISLATION.—Whenever the Committee on Appropria25 tions or any other committee of either House (including 
25 

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1 a committee of conference) reports any bill or joint resolu2 tion that provides budget authority for any emergency, the 

3 report accompanying that bill or joint resolution (or the 

4 joint explanatory statement of managers in the case of a 

5 conference report on any such bill or joint resolution) shall 

6 identify all provisions that provide budget authority and 

7 the outlays flowing therefrom for such emergency and in8 clude a statement of the reasons why such budget author9 ity meets the definition of an emergency pursuant to the 

10 guidelines referred to in section 114 of the Family Budget 

11 Protection Act of 2005.’’. 

12 (b) CONFORMING AMENDMENT.—The table of con13 tents set forth in section 1(b) of the Congressional Budget 

14 and Impoundment Control Act of 1974 is amended by in15 serting after the item relating to section 315 the following 

16 new item: 

‘‘Sec. 316. Emergencies.’’. 

17 SEC. 117. APPLICATION OF SECTION 306 TO EMERGENCIES 

18 IN EXCESS OF AMOUNTS IN RESERVE FUND. 

19 Section 306 of the Congressional Budget Act of 1974 

20 is amended by inserting at the end the following new sen21 tence: ‘‘No amendment reported by the Committee on the 

22 Budget (or from the consideration of which such com23 mittee has been discharged) pursuant to section 316(c) 

24 may be amended.’’. 
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1 SEC. 118. UP-TO-DATE TABULATIONS. 

2 Section 308(b)(2) of the Congressional Budget Act 

3 of 1974 is amended by striking ‘‘and’’ at the end of sub4 paragraph (B), by striking the period at the end of sub5 paragraph (C) and inserting ‘‘; and’’, and by adding at 

6 the end the following new subparagraph: 

7 ‘‘(D) shall include an up-to-date tabulation 

8 of amounts remaining in the reserve fund for 

9 emergencies.’’. 

10 SEC. 119. PROHIBITION ON AMENDMENTS TO EMERGENCY 

11 RESERVE FUND. 

12 (a) POINT OF ORDER.—Section 305 of the Congres13 sional Budget Act of 1974 (as amended by section 103(f)) 

14 is further amended by adding at the end the following new 

15 subsection: 

16 ‘‘(f) POINT OF ORDER REGARDING EMERGENCY RE17 SERVE FUND.—It shall not be in order in the House of 

18 Representatives or in the Senate to consider an amend19 ment to a joint resolution on the budget which changes 

20 the amount of budget authority and outlays set forth in 

21 section 301(a)(4) for emergency reserve fund.’’. 

22 (b) TECHNICAL AMENDMENT.—(1) Section 904(c)(1) 

23 of the Congressional Budget Act of 1974 is amended by 

24 inserting ‘‘305(e), 305(f),’’ after ‘‘305(c)(4),’’. 
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1 (2) Section 904(d)(2) of the Congressional Budget 

2 Act of 1974 is amended by inserting ‘‘305(e), 305(f),’’ 

3 after ‘‘305(c)(4),’’. 

4 Subtitle C—Biennial Budget 

5 Option 

6 SEC. 121. EFFECTIVE DATE. 

7 If— 

8 (1) as part of the President’s budget submis9 sion under section 1105(a) of title 31, United States 

10 Code, during the first session of any Congress, the 

11 President includes a request that the joint resolution 

12 on the budget that will be considered during the first 

13 session of the next Congress be for a biennium con14 sisting of two consecutive fiscal years; and 

15 (2) the joint resolution on the budget for the 

16 fiscal year to which the President’s submission re17 lates contains a provision stating that the joint reso18 lution on the budget that will be considered during 

19 the first session of the next Congress shall be for a 

20 biennium consisting of two consecutive fiscal years; 

21 then the provisions of this subtitle shall take effect on Jan22 uary 1 of the calendar year in which that next Congress 

23 commences and apply to that Congress and each Congress 

24 thereafter. 
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1 SEC. 122. REVISION OF TIMETABLE. 

2 Section 300 of the Congressional Budget Act of 1974 

3 (2 U.S.C. 631) is amended to read as follows: 

4 ‘‘TIMETABLE

5 ‘‘SEC. 300. (a) IN GENERAL.—Except as provided by 

6 subsection (b), the timetable with respect to the congres7 sional budget process for any Congress (beginning with 

8 the One Hundred Tenth Congress or a subsequent Con9 gress, as applicable) is as follows: 

‘‘First Session 

‘‘On or before: Action to be completed: 

First Monday in February ....... President submits budget recommendations. 

February 15 ............................. Congressional Budget Office submits report 

to Budget Committees. 

Not later than 6 weeks after 

budget submission.

Committees submit views and estimates to 

Budget Committees. 

April 1 ...................................... Budget Committees report joint resolution on 

the biennial budget. 

May 15 ..................................... Congress completes action on joint resolution 

on the biennial budget. 

May 15 ..................................... Biennial appropriation bills may be considered in the House. 

June 10 .................................... House Appropriations Committee reports last 

biennial appropriation bill. 

June 30 .................................... House completes action on biennial appropriation bills. 

October 1 .................................. Biennium begins. 

‘‘Second Session 

‘‘On or before: Action to be completed: 

February 15 ............................. President submits budget review. 

Not later than 6 weeks after 

President submits budget review.

Congressional Budget Office submits report 

to Budget Committees. 

The last day of the session ....... Congress completes action on bills and resolutions authorizing new budget authority for 

the succeeding biennium. 

10 ‘‘(b) SPECIAL RULE.—In the case of any first session 

11 of Congress that begins in any year during which the term 

12 of a President (except a President who succeeds himself) 
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1 begins, the following dates shall supersede those set forth 

2 in subsection (a): 

‘‘First Session 

‘‘On or before: Action to be completed: 

First Monday in April .............. President submits budget recommendations. 

April 20 .................................... Committees submit views and estimates to 

Budget Committees. 

May 15 ..................................... Budget Committees report joint resolution on 

the biennial budget. 

June 1 ...................................... Congress completes action on joint resolution 

on the biennial budget. 

June 1 ...................................... Biennial appropriation bills may be considered in the House. 

July 1 ....................................... House Appropriations Committee reports last 

biennial appropriation bill. 

July 20 ..................................... House completes action on biennial appropriation bills. 

October 1 .................................. Biennium begins.’’. 

3 SEC. 123. AMENDMENTS TO THE CONGRESSIONAL BUDGET 

4 AND IMPOUNDMENT CONTROL ACT OF 1974. 

5 (a) DECLARATION OF PURPOSE.—Section 2(2) of the 

6 Congressional Budget and Impoundment Control Act of 

7 1974 (2 U.S.C. 621(2)) is amended by striking ‘‘each 

8 year’’ and inserting ‘‘biennially’’. 

9 (b) DEFINITIONS.— 

10 (1) BUDGET RESOLUTION.—Section 3(4) of 

11 such Act (2 U.S.C. 622(4)) is amended by striking 

12 ‘‘fiscal year’’ each place it appears and inserting ‘‘bi13 ennium’’. 

14 (2) BIENNIUM.—Section 3 of such Act (2 

15 U.S.C. 622) (as amended by section 111(a)) is fur16 ther amended by adding at the end the following 

17 new paragraph: 
30 

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1 ‘‘(13) The term ‘biennium’ means the period of 

2 2 consecutive fiscal years beginning on October 1 of 

3 any odd-numbered year.’’. 

4 (c) BIENNIAL JOINT RESOLUTION ON THE BUDG5 ET.— 

6 (1) CONTENTS OF RESOLUTION.—Section 

7 301(a) of such Act (2 U.S.C. 632(a)) is amended— 

8 (A) in the matter preceding paragraph (1) 

9 by— 

10 (i) striking ‘‘April 15 of each year’’ 

11 and inserting ‘‘May 15 of each odd-num12 bered year’’; 

13 (ii) striking ‘‘the fiscal year beginning 

14 on October 1 of such year’’ the first place 

15 it appears and inserting ‘‘the biennium be16 ginning on October 1 of such year’’; 

17 (iii) striking ‘‘the fiscal year beginning 

18 on October 1 of such year’’ the second 

19 place it appears and inserting ‘‘each fiscal 

20 year in such period’’; and 

21 (iv) striking ‘‘each of the four ensuing 

22 fiscal years’’ and inserting ‘‘each fiscal 

23 year in the next 2 bienniums’’; 
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1 (B) in paragraph (6), by striking ‘‘for the 

2 fiscal year’’ and inserting ‘‘for each fiscal year 

3 in the biennium’’; and 

4 (C) in paragraph (7), by striking ‘‘for the 

5 fiscal year’’ and inserting ‘‘for each fiscal year 

6 in the biennium’’. 

7 (2) ADDITIONAL MATTERS.—Section 301(b) of 

8 such Act (2 U.S.C. 632(b)) is amended— 

9 (A) in paragraph (3), by striking ‘‘for such 

10 fiscal year’’ and inserting ‘‘for either fiscal year 

11 in such biennium’’; and 

12 (B) in paragraph (7), by striking ‘‘for the 

13 first fiscal year’’ and inserting ‘‘for each fiscal 

14 year in the biennium’’. 

15 (3) VIEWS OF OTHER COMMITTEES.—Section 

16 301(d) of such Act (2 U.S.C. 632(d)) is amended by 

17 inserting ‘‘(or, if applicable, as provided by section 

18 300(b))’’ after ‘‘United States Code’’. 

19 (4) HEARINGS.—Section 301(e)(1) of such Act 

20 (2 U.S.C. 632(e)) is amended by— 

21 (A) striking ‘‘fiscal year’’ and inserting 

22 ‘‘biennium’’; and 

23 (B) inserting after the second sentence the 

24 following: ‘‘On or before April 1 of each odd25 numbered year (or, if applicable, as provided by 
32 

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1 section 300(b)), the Committee on the Budget 

2 of each House shall report to its House the 

3 joint resolution on the budget referred to in 

4 subsection (a) for the biennium beginning on 

5 October 1 of that year.’’. 

6 (5) GOALS FOR REDUCING UNEMPLOYMENT.— 

7 Section 301(f) of such Act (2 U.S.C. 632(f)) is 

8 amended by striking ‘‘fiscal year’’ each place it ap9 pears and inserting ‘‘biennium’’. 

10 (6) ECONOMIC ASSUMPTIONS.—Section 

11 301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is 

12 amended by striking ‘‘for a fiscal year’’ and insert13 ing ‘‘for a biennium’’. 

14 (7) SECTION HEADING.—The section heading of 

15 section 301 of such Act is amended by striking ‘‘AN16 NUAL’’ and inserting ‘‘BIENNIAL’’. 

17 (8) TABLE OF CONTENTS.—The item relating 

18 to section 301 in the table of contents set forth in 

19 section 1(b) of such Act is amended by striking ‘‘An20 nual’’ and inserting ‘‘Biennial’’. 

21 (d) COMMITTEE ALLOCATIONS.—Section 302 of such 

22 Act (2 U.S.C. 633) is amended— 

23 (1) in subsection (a)(1) by— 
33 

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1 (A) striking ‘‘for the first fiscal year of the 

2 resolution,’’ and inserting ‘‘for each fiscal year 

3 in the biennium,’’; 

4 (B) striking ‘‘for that period of fiscal 

5 years’’ and inserting ‘‘for all fiscal years cov6 ered by the resolution’’; and 

7 (C) striking ‘‘for the fiscal year of that 

8 resolution’’ and inserting ‘‘for each fiscal year 

9 in the biennium’’; 

10 (2) in subsection (f)(1), by striking ‘‘for a fiscal 

11 year’’ and inserting ‘‘for a biennium’’; 

12 (3) in subsection (f)(1), by striking ‘‘first fiscal 

13 year’’ and inserting ‘‘either fiscal year of the bien14 nium’’; 

15 (4) in subsection (f)(2)(A), by— 

16 (A) striking ‘‘first fiscal year’’ and insert17 ing ‘‘each fiscal year of the biennium’’; and 

18 (B) striking ‘‘the total of fiscal years’’ and 

19 inserting ‘‘the total of all fiscal years covered by 

20 the resolution’’; and 

21 (5) in subsection (g)(1)(A), by striking ‘‘April’’ 

22 and inserting ‘‘May’’. 

23 (e) SECTION 303 POINT OF ORDER.—Section 303 of 

24 such Act (2 U.S.C. 634(a)) is amended by striking ‘‘for 

25 a fiscal year’’ and inserting ‘‘for a biennium’’ and by strik-
34 

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1 ing ‘‘the first fiscal year’’ and inserting ‘‘each fiscal year 

2 of the biennium’’. 

3 (f) PERMISSIBLE REVISIONS OF JOINT RESOLUTIONS

4 ON THE BUDGET.—Section 304 of such Act (2 U.S.C. 

5 635) is amended— 

6 (1) by striking ‘‘fiscal year’’ the first two places 

7 it appears and inserting ‘‘biennium’’; 

8 (2) by striking ‘‘for such fiscal year’’; and 

9 (3) by inserting before the period ‘‘for such bi10 ennium’’. 

11 (g) PROCEDURES FOR CONSIDERATION OF BUDGET

12 RESOLUTIONS.—Section 305(a)(3) of such Act (2 U.S.C. 

13 636(b)(3)) is amended by striking ‘‘fiscal year’’ and in14 serting ‘‘biennium’’. 

15 (h) COMPLETION OF HOUSE COMMITTEE ACTION ON

16 APPROPRIATION BILLS.—Section 307 of such Act (2 

17 U.S.C. 638) is amended— 

18 (1) by striking ‘‘each year’’ and inserting ‘‘each 

19 odd-numbered year (or, if applicable, as provided by 

20 section 300(b), July 1)’’; 

21 (2) by striking ‘‘annual’’ and inserting ‘‘bien22 nial’’; 

23 (3) by striking ‘‘fiscal year’’ and inserting ‘‘bi24 ennium’’; and 
35 

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1 (4) by striking ‘‘that year’’ and inserting ‘‘each 

2 odd-numbered year’’. 

3 (i) QUARTERLY BUDGET REPORTS.—Section 308 of 

4 such Act (2 U.S.C. 639) is amended by adding at the end 

5 the following new subsection: 

6 ‘‘(d) QUARTERLY BUDGET REPORTS.—The Director 

7 of the Congressional Budget Office shall, as soon as prac8 ticable after the completion of each quarter of the fiscal 

9 year, prepare an analysis comparing revenues, spending, 

10 and the deficit or surplus for the current fiscal year to 

11 assumptions included in the congressional budget resolu12 tion. In preparing this report, the Director of the Congres13 sional Budget Office shall combine actual budget figures 

14 to date with projected revenue and spending for the bal15 ance of the fiscal year. The Director of the Congressional 

16 Budget Office shall include any other information in this 

17 report that it deems useful for a full understanding of the 

18 current fiscal position of the Government. The reports 

19 mandated by this subsection shall be transmitted by the 

20 Director to the Senate and House Committees on the 

21 Budget, and the Congressional Budget Office shall make 

22 such reports available to any interested party upon re23 quest.’’. 
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1 (j) COMPLETION OF HOUSE ACTION ON REGULAR

2 APPROPRIATION BILLS.—Section 309 of such Act (2 

3 U.S.C. 640) is amended— 

4 (1) by striking ‘‘It’’ and inserting ‘‘Except 

5 whenever section 300(b) is applicable, it’’; 

6 (2) by inserting ‘‘of any odd-numbered calendar 

7 year’’ after ‘‘July’’; 

8 (3) by striking ‘‘annual’’ and inserting ‘‘bien9 nial’’; and 

10 (4) by striking ‘‘fiscal year’’ and inserting ‘‘bi11 ennium’’. 

12 (k) RECONCILIATION PROCESS.—Section 310 of such 

13 Act (2 U.S.C. 641) is amended— 

14 (1) in subsection (a), in the matter preceding 

15 paragraph (1), by striking ‘‘any fiscal year’’ and in16 serting ‘‘any biennium’’; 

17 (2) in subsection (a)(1), by striking ‘‘such fiscal 

18 year’’ each place it appears and inserting ‘‘any fiscal 

19 year covered by such resolution’’; and 

20 (3) by striking subsection (f) and redesignating 

21 subsection (g) as subsection (f). 

22 (l) SECTION 311 POINT OF ORDER.— 

23 (1) IN THE HOUSE.—Section 311(a)(1) of such 

24 Act (2 U.S.C. 642(a)) is amended— 
37 

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1 (A) by striking ‘‘for a fiscal year’’ and in2 serting ‘‘for a biennium’’; 

3 (B) by striking ‘‘the first fiscal year’’ each 

4 place it appears and inserting ‘‘either fiscal 

5 year of the biennium’’; and 

6 (C) by striking ‘‘that first fiscal year’’ and 

7 inserting ‘‘each fiscal year in the biennium’’. 

8 (2) IN THE SENATE.—Section 311(a)(2) of 

9 such Act is amended— 

10 (A) in subparagraph (A), by striking ‘‘for 

11 the first fiscal year’’ and inserting ‘‘for either 

12 fiscal year of the biennium’’; and 

13 (B) in subparagraph (B)— 

14 (i) by striking ‘‘that first fiscal year’’ 

15 the first place it appears and inserting 

16 ‘‘each fiscal year in the biennium’’; and 

17 (ii) by striking ‘‘that first fiscal year 

18 and the ensuing fiscal years’’ and inserting 

19 ‘‘all fiscal years’’. 

20 (3) SOCIAL SECURITY LEVELS.—Section 

21 311(a)(3) of such Act is amended by— 

22 (A) striking ‘‘for the first fiscal year’’ and 

23 inserting ‘‘each fiscal year in the biennium’’; 

24 and 
38 

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1 (B) striking ‘‘that fiscal year and the ensu2 ing fiscal years’’ and inserting ‘‘all fiscal 

3 years’’. 

4 (m) MAXIMUM DEFICIT AMOUNT POINT OF

5 ORDER.—Section 312(c) of the Congressional Budget Act 

6 of 1974 (2 U.S.C. 643) is amended— 

7 (1) by striking ‘‘for a fiscal year’’ and inserting 

8 ‘‘for a biennium’’; 

9 (2) in paragraph (1), by striking ‘‘first fiscal 

10 year’’ and inserting ‘‘either fiscal year in the bien11 nium’’; 

12 (3) in paragraph (2), by striking ‘‘that fiscal 

13 year’’ and inserting ‘‘either fiscal year in the bien14 nium’’; and 

15 (4) in the matter following paragraph (2), by 

16 striking ‘‘that fiscal year’’ and inserting ‘‘the appli17 cable fiscal year’’. 

18 SEC. 124. AMENDMENTS TO RULES OF HOUSE OF REP19 RESENTATIVES. 

20 (a) Clause 4(a)(1)(A) of rule X of the Rules of the 

21 House of Representatives is amended by inserting ‘‘odd22 numbered’’ after ‘‘each’’. 

23 (b) Clause 4(a)(4) of rule X of the Rules of the House 

24 of Representatives is amended by striking ‘‘fiscal year’’ 

25 and inserting ‘‘biennium’’. 
39 

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1 (c) Clause 4(b)(2) of rule X of the Rules of the House 

2 of Representatives is amended by striking ‘‘each fiscal 

3 year’’ and inserting ‘‘the biennium’’. 

4 (d) Clause 4(b) of rule X of the Rules of the House 

5 of Representatives is amended by striking ‘‘and’’ at the 

6 end of subparagraph (5), by striking the period and insert7 ing ‘‘; and’’ at the end of subparagraph (6), and by adding 

8 at the end the following new subparagraph: 

9 ‘‘(7) use the second session of each Congress to 

10 study issues with long-term budgetary and economic 

11 implications, which would include— 

12 ‘‘(A) hold hearings to receive testimony 

13 from committees of jurisdiction to identify prob14 lem areas and to report on the results of over15 sight; and 

16 ‘‘(B) by January 1 of each odd-number 

17 year, issuing a report to the Speaker which 

18 identifies the key issues facing the Congress in 

19 the next biennium.’’. 

20 (e) Clause 4(e) of rule X of the Rules of the House 

21 of Representatives is amended by striking ‘‘annually’’ each 

22 place it appears and inserting ‘‘biennially’’ and by striking 

23 ‘‘annual’’ and inserting ‘‘biennial’’. 

24 (f) Clause 4(f) of rule X of the Rules of the House 

25 of Representatives is amended— 
40 

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1 (1) by inserting ‘‘during each odd-numbered 

2 year’’ after ‘‘submits his budget’’; 

3 (2) by striking ‘‘fiscal year’’ the first place it 

4 appears and inserting ‘‘biennium’’; and 

5 (3) by striking ‘‘that fiscal year’’ and inserting 

6 ‘‘each fiscal year in such ensuing biennium’’. 

7 (g) Clause 11(i) of rule X of the Rules of the House 

8 of Representatives is amended by striking ‘‘during the 

9 same or preceding fiscal year’’. 

10 (h) Clause 3(d)(2)(A) of rule XIII of the Rules of 

11 the House of Representatives is amended by striking 

12 ‘‘five’’ both places it appears and inserting ‘‘six’’. 

13 (i) Clause 5(a)(1) of rule XIII of the Rules of the 

14 House of Representatives is amended by striking ‘‘fiscal 

15 year after September 15 in the preceding fiscal year’’ and 

16 inserting ‘‘biennium after September 15 of the calendar 

17 year in which such biennium begins’’. 

18 SEC. 125. AMENDMENTS TO TITLE 31, UNITED STATES 

19 CODE. 

20 (a) DEFINITION.—Section 1101 of title 31, United 

21 States Code, is amended by adding at the end the fol22 lowing new paragraph: 

23 ‘‘(3) ‘biennium’ has the meaning given to such 

24 term in paragraph (13) of section 3 of the Congres-
41 

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1 sional Budget and Impoundment Control Act of 

2 1974 (2 U.S.C. 622(13)).’’. 

3 (b) BUDGET CONTENTS AND SUBMISSION TO THE

4 CONGRESS.— 

5 (1) SCHEDULE.—The matter preceding para6 graph (1) in section 1105(a) of title 31, United 

7 States Code, is amended to read as follows: 

8 ‘‘(a) On or before the first Monday in February of 

9 each odd-numbered year (or, if applicable, as provided by 

10 section 300(b) of the Congressional Budget Act of 1974), 

11 beginning with the One Hundred Tenth Congress or a 

12 subsequent Congress (as applicable), the President shall 

13 submit to the Congress the budget for the biennium begin14 ning on October 1 of such calendar year. The budget 

15 transmitted under this subsection shall include a budget 

16 message and summary and supporting information. The 

17 President shall include in each budget the following:’’. 

18 (2) EXPENDITURES.—Section 1105(a)(5) of 

19 title 31, United States Code, is amended by striking 

20 ‘‘the fiscal year for which the budget is submitted 

21 and the 4 fiscal years after that year’’ and inserting 

22 ‘‘each fiscal year in the biennium for which the 

23 budget is submitted and in the succeeding 4 years’’. 

24 (3) RECEIPTS.—Section 1105(a)(6) of title 31, 

25 United States Code, is amended by striking ‘‘the fis-
42 

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1 cal year for which the budget is submitted and the 

2 4 fiscal years after that year’’ and inserting ‘‘each 

3 fiscal year in the biennium for which the budget is 

4 submitted and in the succeeding 4 years’’. 

5 (4) BALANCE STATEMENTS.—Section 

6 1105(a)(9)(C) of title 31, United States Code, is 

7 amended by striking ‘‘the fiscal year’’ and inserting 

8 ‘‘each fiscal year in the biennium’’. 

9 (5) GOVERNMENT FUNCTIONS AND ACTIVI10 TIES.—Section 1105(a)(12) of title 31, United 

11 States Code, is amended in subparagraph (A), by 

12 striking ‘‘the fiscal year’’ and inserting ‘‘each fiscal 

13 year in the biennium’’. 

14 (6) ALLOWANCES.—Section 1105(a)(13) of title 

15 31, United States Code, is amended by striking ‘‘the 

16 fiscal year’’ and inserting ‘‘each fiscal year in the bi17 ennium’’. 

18 (7) ALLOWANCES FOR UNANTICIPATED AND

19 UNCONTROLLABLE EXPENDITURES.—Section 

20 1105(a)(14) of title 31, United States Code, is 

21 amended by striking ‘‘that year’’ and inserting ‘‘each 

22 fiscal year in the biennium for which the budget is 

23 submitted’’. 

24 (8) TAX EXPENDITURES.—Section 1105(a)(16) 

25 of title 31, United States Code, is amended by strik-
43 

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1 ing ‘‘the fiscal year’’ and inserting ‘‘each fiscal year 

2 in the biennium’’. 

3 (9) ESTIMATES FOR FUTURE YEARS.—Section 

4 1105(a)(17) of title 31, United States Code, is 

5 amended— 

6 (A) by striking ‘‘the fiscal year following 

7 the fiscal year’’ and inserting ‘‘each fiscal year 

8 in the biennium following the biennium’’; 

9 (B) by striking ‘‘that following fiscal year’’ 

10 and inserting ‘‘each such fiscal year’’; and 

11 (C) by striking ‘‘fiscal year before the fis12 cal year’’ and inserting ‘‘biennium before the bi13 ennium’’. 

14 (10) PRIOR YEAR OUTLAYS.—Section 

15 1105(a)(18) of title 31, United States Code, is 

16 amended— 

17 (A) by striking ‘‘the prior fiscal year,’’ and 

18 inserting ‘‘each of the 2 most recently com19 pleted fiscal years,’’; 

20 (B) by striking ‘‘for that year’’ and insert21 ing ‘‘with respect to those fiscal years’’; and 

22 (C) by striking ‘‘in that year’’ and insert23 ing ‘‘in those fiscal years’’. 
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1 (11) PRIOR YEAR RECEIPTS.—Section 

2 1105(a)(19) of title 31, United States Code, is 

3 amended— 

4 (A) by striking ‘‘the prior fiscal year’’ and 

5 inserting ‘‘each of the 2 most recently com6 pleted fiscal years’’; 

7 (B) by striking ‘‘for that year’’ and insert8 ing ‘‘with respect to those fiscal years’’; and 

9 (C) by striking ‘‘in that year’’ each place 

10 it appears and inserting ‘‘in those fiscal years’’. 

11 (c) ESTIMATED EXPENDITURES OF LEGISLATIVE

12 AND JUDICIAL BRANCHES.—Section 1105(b) of title 31, 

13 United States Code, is amended by striking ‘‘each year’’ 

14 and inserting ‘‘each even-numbered year’’. 

15 (d) RECOMMENDATIONS TO MEET ESTIMATED DE16 FICIENCIES.—Section 1105(c) of title 31, United States 

17 Code, is amended— 

18 (1) by striking ‘‘the fiscal year for’’ the first 

19 place it appears and inserting ‘‘each fiscal year in 

20 the biennium for’’; 

21 (2) by striking ‘‘the fiscal year for’’ the second 

22 place it appears and inserting ‘‘each fiscal year of 

23 the biennium, as the case may be,’’; and 

24 (3) by striking ‘‘that year’’ and inserting ‘‘for 

25 each year of the biennium’’. 
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1 (e) CAPITAL INVESTMENT ANALYSIS.—Section 

2 1105(e)(1) of title 31, United States Code, is amended 

3 by striking ‘‘ensuing fiscal year’’ and inserting ‘‘biennium 

4 to which such budget relates’’. 

5 (f) SUPPLEMENTAL BUDGET ESTIMATES AND

6 CHANGES.— 

7 (1) IN GENERAL.—Section 1106(a) of title 31, 

8 United States Code, is amended— 

9 (A) in the matter preceding paragraph (1), 

10 by— 

11 (i) inserting ‘‘and before February 15 

12 of each even-numbered year’’ after ‘‘Before 

13 July 16 of each year’’; and 

14 (ii) striking ‘‘fiscal year’’ and insert15 ing ‘‘biennium’’; 

16 (B) in paragraph (1), by striking ‘‘that fis17 cal year’’ and inserting ‘‘each fiscal year in 

18 such biennium’’; 

19 (C) in paragraph (2), by striking ‘‘4 fiscal 

20 years following the fiscal year’’ and inserting ‘‘4 

21 fiscal years following the biennium’’; and 

22 (D) in paragraph (3), by striking ‘‘fiscal 

23 year’’ and inserting ‘‘biennium’’. 

24 (2) CHANGES.—Section 1106(b) of title 31, 

25 United States Code, is amended by— 
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1 (A) striking ‘‘the fiscal year’’ and inserting 

2 ‘‘each fiscal year in the biennium’’; and 

3 (B) inserting ‘‘and before February 15 of 

4 each even-numbered year’’ after ‘‘Before July 

5 16 of each year’’. 

6 (g) CURRENT PROGRAMS AND ACTIVITIES ESTI7 MATES.— 

8 (1) THE PRESIDENT.—Section 1109(a) of title 

9 31, United States Code, is amended— 

10 (A) by striking ‘‘On or before the first 

11 Monday after January 3 of each year (on or be12 fore February 5 in 1986)’’ and inserting ‘‘At 

13 the same time the budget required by section 

14 1105 is submitted for a biennium’’; and 

15 (B) by striking ‘‘the following fiscal year’’ 

16 and inserting ‘‘each fiscal year of such period’’. 

17 (2) JOINT ECONOMIC COMMITTEE.—Section 

18 1109(b) of title 31, United States Code, is amended 

19 by striking ‘‘March 1 of each year’’ and inserting 

20 ‘‘within 6 weeks of the President’s budget submis21 sion for each odd-numbered year (or, if applicable, 

22 as provided by section 300(b) of the Congressional 

23 Budget Act of 1974)’’. 
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1 (h) YEAR-AHEAD REQUESTS FOR AUTHORIZING

2 LEGISLATION.—Section 1110 of title 31, United States 

3 Code, is amended by— 

4 (1) striking ‘‘May 16’’ and inserting ‘‘March 

5 31’’; and 

6 (2) striking ‘‘year before the year in which the 

7 fiscal year begins’’ and inserting ‘‘calendar year pre8 ceding the calendar year in which the biennium be9 gins’’. 

10 SEC. 126. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE 

11 OF APPROPRIATION ACTS. 

12 Section 105 of title 1, United States Code, is amend13 ed to read as follows: 

14 ‘‘§ 105. Title and style of appropriations Acts 

15 ‘‘(a) The style and title of all Acts making appropria16 tions for the support of the Government shall be as fol17 lows: ‘An Act making appropriations (here insert the ob18 ject) for each fiscal year in the biennium of fiscal years 

19 (here insert the fiscal years of the biennium).’. 

20 ‘‘(b) All Acts making regular appropriations for the 

21 support of the Government shall be enacted for a biennium 

22 and shall specify the amount of appropriations provided 

23 for each fiscal year in such period. 

24 ‘‘(c) For purposes of this section, the term ‘biennium’ 

25 has the same meaning as in section 3(13) of the Congres-
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1 sional Budget and Impoundment Control Act of 1974 (2 

2 U.S.C. 622(13)).’’. 

3 SEC. 127. MULTIYEAR AUTHORIZATIONS. 

4 (a) IN GENERAL.—Title III of the Congressional 

5 Budget Act of 1974 (as amended by section 116(a)) is 

6 further amended by adding at the end the following new 

7 section: 

8 ‘‘MULTIYEAR AUTHORIZATIONS OF APPROPRIATIONS

9 ‘‘SEC. 318. (a) It shall not be in order in the House 

10 of Representatives or the Senate to consider any measure 

11 that contains a specific authorization of appropriations for 

12 any purpose unless the measure includes such a specific 

13 authorization of appropriations for that purpose for not 

14 less than each fiscal year in one or more bienniums. 

15 ‘‘(b)(1) For purposes of this section, a specific au16 thorization of appropriations is an authorization for the 

17 enactment of an amount of appropriations or amounts not 

18 to exceed an amount of appropriations (whether stated as 

19 a sum certain, as a limit, or as such sums as may be nec20 essary) for any purpose for a fiscal year. 

21 ‘‘(2) Subsection (a) does not apply with respect to 

22 an authorization of appropriations for a single fiscal year 

23 for any program, project, or activity if the measure con24 taining that authorization includes a provision expressly 

25 stating the following: ‘Congress finds that no authoriza26 tion of appropriation will be required for [Insert name of 
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1 applicable program, project, or activity] for any subse2 quent fiscal year.’. 

3 ‘‘(c) For purposes of this section, the term ‘measure’ 

4 means a bill, joint resolution, amendment, motion, or con5 ference report.’’. 

6 (b) AMENDMENT TO TABLE OF CONTENTS.—The 

7 table of contents set forth in section 1(b) of the Congres8 sional Budget and Impoundment Control Act of 1974 is 

9 amended by adding after the item relating to section 317 

10 the following new item: 

‘‘Sec. 318. Multiyear authorizations of appropriations.’’. 

11 SEC. 128. GOVERNMENT STRATEGIC AND PERFORMANCE 

12 PLANS ON A BIENNIAL BASIS. 

13 (a) STRATEGIC PLANS.—Section 306 of title 5, 

14 United States Code, is amended— 

15 (1) in subsection (a), by striking ‘‘September 

16 30, 1997’’ and inserting ‘‘September 30, 2007’’; 

17 (2) in subsection (b)— 

18 (A) by striking ‘‘at least every three years’’ 

19 and all that follows thereafter and inserting ‘‘at 

20 least every 4 years, except that strategic plans 

21 submitted by September 30, 2007, shall be up22 dated and revised by September 30, 2010’’; and 

23 (B) by striking ‘‘five years forward’’ and 

24 inserting ‘‘six years forward’’; and 
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1 (3) in subsection (c), by inserting a comma 

2 after ‘‘section’’ the second place it appears and add3 ing ‘‘including a strategic plan submitted by Sep4 tember 30, 2007, meeting the requirements of sub5 section (a)’’. 

6 (b) BUDGET CONTENTS AND SUBMISSION TO CON7 GRESS.—Paragraph (28) of section 1105(a) of title 31, 

8 United States Code, is amended by striking ‘‘beginning 

9 with fiscal year 1999, a’’ and inserting ‘‘beginning with 

10 fiscal year 2010, a biennial’’. 

11 (c) PERFORMANCE PLANS.—Section 1115 of title 31, 

12 United States Code, is amended— 

13 (1) in subsection (a)— 

14 (A) in the matter before paragraph (1)— 

15 (i) by striking ‘‘section 1105(a)(29)’’ 

16 and inserting ‘‘section 1105(a)(28)’’; and 

17 (ii) by striking ‘‘an annual’’ and in18 serting ‘‘a biennial’’; 

19 (B) in paragraph (1) by inserting after 

20 ‘‘program activity’’ the following: ‘‘for both 

21 years 1 and 2 of the biennial plan’’; 

22 (C) in paragraph (5) by striking ‘‘and’’ 

23 after the semicolon; 
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1 (D) in paragraph (6) by striking the period 

2 and inserting a semicolon; and inserting ‘‘and’’ 

3 after the inserted semicolon; and 

4 (E) by adding after paragraph (6) the fol5 lowing: 

6 ‘‘(7) cover each fiscal year of the biennium be7 ginning with the first fiscal year of the next biennial 

8 budget cycle.’’; 

9 (2) in subsection (d) by striking ‘‘annual’’ and 

10 inserting ‘‘biennial’’; and 

11 (3) in paragraph (6) of subsection (f) by strik12 ing ‘‘annual’’ and inserting ‘‘biennial’’. 

13 (d) MANAGERIAL ACCOUNTABILITY AND FLEXI14 BILITY.—Section 9703 of title 31, United States Code, re15 lating to managerial accountability, is amended— 

16 (1) in subsection (a)— 

17 (A) in the first sentence by striking ‘‘an18 nual’’; and 

19 (B) by striking ‘‘section 1105(a)(29)’’ and 

20 inserting ‘‘section 1105(a)(28)’’; 

21 (2) in subsection (e)— 

22 (A) in the first sentence by striking ‘‘one 

23 or’’ before ‘‘two years’’; 
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1 (B) in the second sentence by striking ‘‘a 

2 subsequent year’’ and inserting ‘‘for a subse3 quent 2-year period’’; and 

4 (C) in the third sentence by striking 

5 ‘‘three’’ and inserting ‘‘four’’. 

6 (e) STRATEGIC PLANS.—Section 2802 of title 39, 

7 United States Code, is amended— 

8 (1) in subsection (a), by striking ‘‘September 

9 30, 1997’’ and inserting ‘‘September 30, 2007’’; 

10 (2) in subsection (b), by striking ‘‘at least every 

11 three years’’ and inserting ‘‘at least every 4 years 

12 except that strategic plans submitted by September 

13 30, 2007, shall be updated and revised by September 

14 30, 2010’’; 

15 (3) in subsection (b), by striking ‘‘five years 

16 forward’’ and inserting ‘‘six years forward’’; and 

17 (4) in subsection (c), by inserting a comma 

18 after ‘‘section’’ the second place it appears and in19 serting ‘‘including a strategic plan submitted by 

20 September 30, 2007, meeting the requirements of 

21 subsection (a)’’. 

22 (f) PERFORMANCE PLANS.—Section 2803(a) of title 

23 39, United States Code, is amended— 

24 (1) in the matter before paragraph (1), by 

25 striking ‘‘an annual’’ and inserting ‘‘a biennial’’; 
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1 (2) in paragraph (1), by inserting after ‘‘pro2 gram activity’’ the following: ‘‘for both years 1 and 

3 2 of the biennial plan’’; 

4 (3) in paragraph (5), by striking ‘‘and’’ after 

5 the semicolon; 

6 (4) in paragraph (6), by striking the period and 

7 inserting ‘‘; and’’; and 

8 (5) by adding after paragraph (6) the following: 

9 ‘‘(7) cover each fiscal year of the biennium be10 ginning with the first fiscal year of the next biennial 

11 budget cycle.’’. 

12 (g) COMMITTEE VIEWS OF PLANS AND REPORTS.— 

13 Section 301(d) of the Congressional Budget Act (2 U.S.C. 

14 632(d)) is amended by adding at the end ‘‘Each committee 

15 of the Senate or the House of Representatives shall review 

16 the strategic plans, performance plans, and performance 

17 reports, required under section 306 of title 5, United 

18 States Code, and sections 1115 and 1116 of title 31, 

19 United States Code, of all agencies under the jurisdiction 

20 of the committee. Each committee may provide its views 

21 on such plans or reports to the Committee on the Budget 

22 of the applicable House.’’. 

23 SEC. 129. BIENNIAL APPROPRIATION BILLS. 

24 (a) IN THE HOUSE OF REPRESENTATIVES.—Clause 

25 2(a) of rule XXI of the Rules of the House of Representa-
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1 tives is amended by adding at the end the following new 

2 subparagraph: 

3 ‘‘(3)(A) Except as provided by subdivision (B), an ap4 propriation may not be reported in a general appropriation 

5 bill (other than a supplemental appropriation bill), and 

6 may not be in order as an amendment thereto, unless it 

7 provides new budget authority or establishes a level of ob8 ligations under contract authority for each fiscal year of 

9 a biennium. 

10 ‘‘(B) Subdivision (A) does not apply with respect to 

11 an appropriation for a single fiscal year for any program, 

12 project, or activity if the bill or amendment thereto con13 taining that appropriation includes a provision expressly 

14 stating the following: ‘Congress finds that no additional 

15 funding beyond one fiscal year will be required and the 

16 [Insert name of applicable program, project, or activity] 

17 will be completed or terminated after the amount provided 

18 has been expended.’. 

19 ‘‘(C) For purposes of paragraph (b), the statement 

20 set forth in subdivision (B) with respect to an appropria21 tion for a single fiscal year for any program, project, or 

22 activity may be included in a general appropriation bill 

23 or amendment thereto.’’. 
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1 (b) CONFORMING AMENDMENT.—Clause 5(b)(1) of 

2 rule XXII of the House of Representatives is amended by 

3 striking ‘‘or (c)’’ and inserting ‘‘or (3) or 2(c)’’. 

4 SEC. 130. ASSISTANCE BY FEDERAL AGENCIES TO STAND5 ING COMMITTEES OF THE SENATE AND THE 

6 HOUSE OF REPRESENTATIVES. 

7 (a) INFORMATION REGARDING AGENCY APPROPRIA8 TIONS REQUESTS.—To assist each standing committee of 

9 the House of Representatives and the Senate in carrying 

10 out its responsibilities, the head of each Federal agency 

11 which administers the laws or parts of laws under the ju12 risdiction of such committee shall provide to such com13 mittee such studies, information, analyses, reports, and 

14 assistance as may be requested by the chairman and rank15 ing minority member of the committee. 

16 (b) INFORMATION REGARDING AGENCY PROGRAM

17 ADMINISTRATION.—To assist each standing committee of 

18 the House of Representatives and the Senate in carrying 

19 out its responsibilities, the head of any agency shall fur20 nish to such committee documentation, containing infor21 mation received, compiled, or maintained by the agency 

22 as part of the operation or administration of a program, 

23 or specifically compiled pursuant to a request in support 

24 of a review of a program, as may be requested by the 
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1 chairman and ranking minority member of such com2 mittee. 

3 (c) SUMMARIES BY COMPTROLLER GENERAL.—With4 in thirty days after the receipt of a request from a chair5 man and ranking minority member of a standing com6 mittee having jurisdiction over a program being reviewed 

7 and studied by such committee under this section, the 

8 Comptroller General of the United States shall furnish to 

9 such committee summaries of any audits or reviews of 

10 such program which the Comptroller General has com11 pleted during the preceding six years. 

12 (d) CONGRESSIONAL ASSISTANCE.—Consistent with 

13 their duties and functions under law, the Comptroller Gen14 eral of the United States, the Director of the Congres15 sional Budget Office, and the Director of the Congres16 sional Research Service shall continue to furnish (con17 sistent with established protocols) to each standing com18 mittee of the House of Representatives or the Senate such 

19 information, studies, analyses, and reports as the chair20 man and ranking minority member may request to assist 

21 the committee in conducting reviews and studies of pro22 grams under this section. 
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1 Subtitle D—Prevention of 

2 Government Shutdown 

3 SEC. 141. AMENDMENT TO TITLE 31. 

4 (a) IN GENERAL.—Chapter 13 of title 31, United 

5 States Code, is amended by inserting after section 1310 

6 the following new section: 

7 ‘‘§ 1311. Continuing appropriations 

8 ‘‘(a)(1) If any regular appropriation bill for a fiscal 

9 year (or, if applicable, for each fiscal year in a biennium) 

10 does not become law before the beginning of such fiscal 

11 year or a joint resolution making continuing appropria12 tions is not in effect, there are appropriated, out of any 

13 money in the Treasury not otherwise appropriated, and 

14 out of applicable corporate or other revenues, receipts, and 

15 funds, such sums as may be necessary to continue any 

16 project or activity for which funds were provided in the 

17 preceding fiscal year— 

18 ‘‘(A) in the corresponding regular appropriation 

19 Act for such preceding fiscal year; or 

20 ‘‘(B) if the corresponding regular appropriation 

21 bill for such preceding fiscal year did not become 

22 law, then in a joint resolution making continuing ap23 propriations for such preceding fiscal year. 

24 ‘‘(2) Appropriations and funds made available, and 

25 authority granted, for a project or activity for any fiscal 
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1 year pursuant to this section shall be at a rate of oper2 ations not in excess of the lower of— 

3 ‘‘(A) the rate of operations provided for in the 

4 regular appropriation Act providing for such project 

5 or activity for the preceding fiscal year; 

6 ‘‘(B) in the absence of such an Act, the rate of 

7 operations provided for such project or activity pur8 suant to a joint resolution making continuing appro9 priations for such preceding fiscal year; 

10 ‘‘(C) the rate of operations provided for in the 

11 regular appropriation bill as passed by the House of 

12 Representatives or the Senate for the fiscal year in 

13 question, except that the lower of these two versions 

14 shall be ignored for any project or activity for which 

15 there is a budget request if no funding is provided 

16 for that project or activity in either version; or 

17 ‘‘(D) the annualized rate of operations provided 

18 for in the most recently enacted joint resolution 

19 making continuing appropriations for part of that 

20 fiscal year or any funding levels established under 

21 the provisions of this Act. 

22 ‘‘(3) Appropriations and funds made available, and 

23 authority granted, for any fiscal year pursuant to this sec24 tion for a project or activity shall be available for the pe-
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1 riod beginning with the first day of a lapse in appropria2 tions and ending with the earlier of— 

3 ‘‘(A) the date on which the applicable regular 

4 appropriation bill for such fiscal year becomes law 

5 (whether or not such law provides for such project 

6 or activity) or a continuing resolution making appro7 priations becomes law, as the case may be; or 

8 ‘‘(B) the last day of such fiscal year. 

9 ‘‘(b) An appropriation or funds made available, or au10 thority granted, for a project or activity for any fiscal year 

11 pursuant to this section shall be subject to the terms and 

12 conditions imposed with respect to the appropriation made 

13 or funds made available for the preceding fiscal year, or 

14 authority granted for such project or activity under cur15 rent law. 

16 ‘‘(c) Appropriations and funds made available, and 

17 authority granted, for any project or activity for any fiscal 

18 year pursuant to this section shall cover all obligations or 

19 expenditures incurred for such project or activity during 

20 the portion of such fiscal year for which this section ap21 plies to such project or activity. 

22 ‘‘(d) Expenditures made for a project or activity for 

23 any fiscal year pursuant to this section shall be charged 

24 to the applicable appropriation, fund, or authorization 

25 whenever a regular appropriation bill or a joint resolution 
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1 making continuing appropriations until the end of a fiscal 

2 year providing for such project or activity for such period 

3 becomes law. 

4 ‘‘(e) This section shall not apply to a project or activ5 ity during a fiscal year if any other provision of law (other 

6 than an authorization of appropriations)— 

7 ‘‘(1) makes an appropriation, makes funds 

8 available, or grants authority for such project or ac9 tivity to continue for such period; or 

10 ‘‘(2) specifically provides that no appropriation 

11 shall be made, no funds shall be made available, or 

12 no authority shall be granted for such project or ac13 tivity to continue for such period. 

14 ‘‘(f) For purposes of this section, the term ‘regular 

15 appropriation bill’ means any annual appropriation bill 

16 making appropriations, otherwise making funds available, 

17 or granting authority, for any of the following categories 

18 of projects and activities: 

19 ‘‘(1) Agriculture, rural development, Food and 

20 Drug Administration, and related agencies pro21 grams. 

22 ‘‘(2) The Department of Defense. 

23 ‘‘(3) Energy and water development, and re24 lated agencies. 
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1 ‘‘(4) Foreign operations, export financing, and 

2 related programs. 

3 ‘‘(5) The Department of Homeland Security. 

4 ‘‘(6) The Department of the Interior, Environ5 mental Protection Agency, and related agencies. 

6 ‘‘(7) The Departments of Labor, Health and 

7 Human Services, and Education, and related agen8 cies. 

9 ‘‘(8) Military quality of life and Veterans Af10 fairs, and related agencies. 

11 ‘‘(9) Science, the Departments of State, Jus12 tice, and Commerce, and related agencies. 

13 ‘‘(10) The Departments of Transportation, 

14 Treasury, and Housing and Urban Development, the 

15 Judiciary, the District of Columbia, and independent 

16 agencies. 

17 ‘‘(11) The Legislative Branch.’’. 

18 (b) CLERICAL AMENDMENT.—The analysis of chap19 ter 13 of title 31, United States Code, is amended by in20 serting after the item relating to section 1310 the fol21 lowing new item: 

‘‘1311. Continuing appropriations.’’. 

22 Subtitle E—The Baseline 

23 SEC. 151. ELIMINATION OF INFLATION ADJUSTMENT. 

24 Section 257(c) of the Balanced Budget and Emer25 gency Deficit Control Act of 1985 is amended— 
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1 (1) in paragraph (1) by striking ‘‘for inflation 

2 as specified in paragraph (5),’’; and 

3 (2) by striking paragraph (5) and redesignating 

4 paragraph (6) as paragraph (5). 

5 SEC. 152. THE PRESIDENT’S BUDGET. 

6 (a) Paragraph (5) of section 1105(a) of title 31, 

7 United States Code, is amended to read as follows: 

8 ‘‘(5) except as provided in subsection (b) of this 

9 section, estimated expenditures and appropriations 

10 for the current year and estimated expenditures and 

11 proposed appropriations the President decides are 

12 necessary to support the Government in the fiscal 

13 year for which the budget is submitted and the 4 fis14 cal years following that year, and, except for detailed 

15 budget estimates, the percentage change from the 

16 current year to the fiscal year for which the budget 

17 is submitted for estimated expenditures and for ap18 propriations.’’. 

19 (b) Section 1105(a)(6) of title 31, United States 

20 Code, is amended to read as follows: 

21 ‘‘(6) estimated receipts of the Government in 

22 the current year and the fiscal year for which the 

23 budget is submitted and the 4 fiscal years after that 

24 year under— 
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1 ‘‘(A) laws in effect when the budget is sub2 mitted; and 

3 ‘‘(B) proposals in the budget to increase 

4 revenues, 

5 and the percentage change (in the case of each cat6 egory referred to in subparagraphs (A) and (B)) be7 tween the current year and the fiscal year for which 

8 the budget is submitted and between the current 

9 year and each of the 9 fiscal years after the fiscal 

10 year for which the budget is submitted.’’. 

11 (c) Section 1105(a)(12) of title 31, United States 

12 Code, is amended to read as follows: 

13 ‘‘(12) for each proposal in the budget for legis14 lation that would establish or expand a Government 

15 activity or function, a table showing— 

16 ‘‘(A) the amount proposed in the budget 

17 for appropriation and for expenditure because 

18 of the proposal in the fiscal year for which the 

19 budget is submitted; 

20 ‘‘(B) the estimated appropriation required 

21 because of the proposal for each of the 4 fiscal 

22 years after that year that the proposal will be 

23 in effect; and 
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1 ‘‘(C) the estimated amount for the same 

2 activity or function, if any, in the current fiscal 

3 year, 

4 and, except for detailed budget estimates, the per5 centage change (in the case of each category re6 ferred to in subparagraphs (A), (B), and (C)) be7 tween the current year and the fiscal year for which 

8 the budget is submitted.’’. 

9 (d) Section 1105(a)(18) of title 31, United States 

10 Code, is amended by inserting ‘‘new budget authority 

11 and’’ before ‘‘budget outlays’’. 

12 (e) Section 1105(a) of title 31, United States Code, 

13 is amended by adding at the end the following new para14 graphs: 

15 ‘‘(35) a comparison of levels of estimated ex16 penditures and proposed appropriations for each 

17 function and subfunction in the current fiscal year 

18 and the fiscal year for which the budget is sub19 mitted, along with the proposed increase or decrease 

20 of spending in percentage terms for each function 

21 and subfunction. 

22 ‘‘(36) a table on sources of growth in total di23 rect spending under current law and as proposed in 

24 this budget submission for the budget year and the 

25 ensuing 9 fiscal years, which shall include changes 
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1 in outlays attributable to the following: cost-of-living 

2 adjustments; changes in the number of program re3 cipients; increases in medical care prices, utilization 

4 and intensity of medical care; and residual factors.’’. 

5 (f) Section 1109(a) of title 31, United States Code, 

6 is amended by inserting after the first sentence the fol7 lowing new sentence: ‘‘For discretionary spending, these 

8 estimates shall assume the levels set forth in the discre9 tionary spending limits under section 251(b) of the Bal10 anced Budget and Emergency Deficit Control Act of 1985, 

11 as adjusted, for the appropriate fiscal years (and if no 

12 such limits are in effect, these estimates shall assume the 

13 adjusted levels for the most recent fiscal year for which 

14 such levels were in effect).’’. 

15 SEC. 153. THE CONGRESSIONAL BUDGET. 

16 Section 301(e) of the Congressional Budget Act of 

17 1974 (as amended by section 103) is further amended— 

18 (1) in paragraph (1), by inserting at the end 

19 the following: ‘‘The basis of deliberations in devel20 oping such joint resolution shall be the estimated 

21 budgetary levels for the preceding fiscal year. Any 

22 budgetary levels pending before the committee and 

23 the text of the joint resolution shall be accompanied 

24 by a document comparing such levels or such text to 

25 the estimated levels of the prior fiscal year. Any 
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1 amendment offered in the committee that changes a 

2 budgetary level and is based upon a specific policy 

3 assumption for a program, project, or activity shall 

4 be accompanied by a document indicating the esti5 mated amount for such program, project, or activity 

6 in the current year.’’; and 

7 (2) in paragraph (2), by striking ‘‘and’’ at the 

8 end of subparagraph (H) (as redesignated), by strik9 ing the period and inserting ‘‘; and’’ at the end of 

10 subparagraph (I) (as redesignated), and by adding 

11 at the end the following new subparagraph: 

12 ‘‘(J) a comparison of levels for the current 

13 fiscal year with proposed spending and revenue 

14 levels for the subsequent fiscal years along with 

15 the proposed increase or decrease of spending 

16 in percentage terms for each function.’’. 

17 SEC. 154. CONGRESSIONAL BUDGET OFFICE REPORTS TO 

18 COMMITTEES. 

19 (a) The first sentence of section 202(e)(1) of the Con20 gressional Budget Act of 1974 is amended by inserting 

21 ‘‘compared to comparable levels for the current year’’ be22 fore the comma at the end of subparagraph (A) and before 

23 the comma at the end of subparagraph (B). 

24 (b) Section 202(e)(1) of the Congressional Budget 

25 Act of 1974 is amended by inserting after the first sen-
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1 tence the following new sentence: ‘‘Such report shall also 

2 include a table on sources of spending growth in total di3 rect spending for the budget year and the ensuing 4 fiscal 

4 years, which shall include changes in outlays attributable 

5 to the following: cost-of-living adjustments; changes in the 

6 number of program recipients; increases in medical care 

7 prices, utilization and intensity of medical care; and resid8 ual factors.’’. 

9 (c) Section 308(a)(1)(B) of the Congressional Budget 

10 Act of 1974 is amended by inserting ‘‘and shall include 

11 a comparison of those levels to comparable levels for the 

12 current fiscal year’’ before ‘‘if timely submitted’’. 

13 SEC. 155. TREATMENT OF EMERGENCIES. 

14 Section 257(c) of the Balanced Budget and Emer15 gency Deficit Control Act of 1985 (as amended by section 

16 151) is further amended by adding at the end the fol17 lowing new paragraph: 

18 ‘‘(7) EMERGENCIES.—Budgetary resources for 

19 emergencies shall be at the level provided in the re20 serve fund for emergencies for that fiscal year pur21 suant to section 301(a)(4) of the Congressional 

22 Budget Act of 1974.’’. 
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1 TITLE II—PUTTING A LID ON 

2 THE FEDERAL BUDGET 

3 Subtitle A—Spending Safeguards 

4 on the Growth of Entitlements 

5 and Mandatories 

6 SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS 

7 AND MANDATORIES. 

8 (a) CONTROL OF ENTITLEMENTS AND

9 MANDATORIES.—The Balanced Budget and Emergency 

10 Deficit Control Act of 1985 is amended by adding after 

11 section 252 the following new section: 

12 ‘‘SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING. 

13 ‘‘(a) CAP ON GROWTH OF ENTITLEMENTS.—Effec14 tive for fiscal year 2007 and for each ensuing fiscal year, 

15 the total level of direct spending for all direct spending 

16 programs, projects, and activities (excluding social secu17 rity) for any such fiscal year shall not exceed the total 

18 level of spending for all such programs, projects, and ac19 tivities for the previous fiscal year after the direct spend20 ing for each such program, project, or activity is increased 

21 by the higher of the change in the Consumer Price Index 

22 for All Urban Consumers or the inflator (if any) applicable 

23 to that program, project, or activity and the growth in 

24 eligible population for such, project, or activity. 
69 

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1 ‘‘(b) SEQUESTRATION.—Within 15 days after Con2 gress adjourns to end a session (other than of the second 

3 session of the One Hundred Ninth Congress), and on the 

4 same day as a sequestration (if any) under section 251, 

5 there shall be a sequestration to reduce the amount of di6 rect spending for the fiscal year beginning in the year the 

7 Congress adjourns by any amount necessary to reduce 

8 such spending to the level set forth in subsection (a) un9 less that amount is less than $250,000,000. 

10 ‘‘(c) UNIFORM REDUCTIONS; LIMITATIONS.—The 

11 amount required to be sequestered for the fiscal year 

12 under subsection (a) shall be obtained from nonexempt di13 rect spending accounts by actions taken in the following 

14 order: 

15 ‘‘(1) FIRST.—The reductions in the programs 

16 specified in section 256(a) (National Wool Act and 

17 special milk), section 256(b) (student loans), and 

18 section 256(c) (foster care and adoption assistance) 

19 shall be made. 

20 ‘‘(2) SECOND.—Any additional reductions that 

21 may be required shall be achieved by reducing each 

22 remaining nonexempt direct spending account by the 

23 uniform percentage necessary to achieve those addi24 tional reductions, except that— 
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1 ‘‘(A) the low-income programs specified in 

2 section 256(d) shall not be reduced by more 

3 than 2 percent; 

4 ‘‘(B) the retirement and veterans benefits 

5 specified in sections 256(f), (g), and (h) shall 

6 not be reduced by more than 2 percent in the 

7 manner specified in that section; and 

8 ‘‘(C) the medicare programs shall not be 

9 reduced by more than 2 percent in the manner 

10 specified in section 256(i). 

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

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

13 iteration the uniform percentage applicable to all 

14 other programs under this paragraph shall be in15 creased (if necessary) to a level sufficient to achieve 

16 the reductions required by this paragraph. 

17 ‘‘(d) EXCLUSION OF MEDICARE PRESCRIPTION

18 DRUG PROGRAM UNTIL FULLY OPERATIONAL.—For pur19 poses of this section with respect to the limitation under 

20 subsection (a) for a fiscal year before fiscal year 2008, 

21 direct spending programs and direct spending shall not 

22 be construed to include part D of title XVIII of the Social 

23 Security Act (or spending under part C of such title that 

24 is attributable to such part D).’’. 
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1 (b) TABLE OF CONTENTS AMENDMENT.—The table 

2 of contents set forth in 250(c) of the Balanced Budget 

3 and Emergency Deficit Control Act of 1985 is amended 

4 by adding after the item relating to section 252 the fol5 lowing new item: 

‘‘Sec. 252A. Enforcing controls on direct spending.’’. 

6 SEC. 202. EXEMPT PROGRAMS AND ACTIVITIES. 

7 Section 255 of the Balanced Budget and Emergency 

8 Deficit Control Act of 1985 is amended to read as follows: 

9 ‘‘SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES. 

10 ‘‘(a) SOCIAL SECURITY BENEFITS; TIER I RAILROAD

11 RETIREMENT BENEFITS; AND CERTAIN MEDICARE BEN12 EFITS.—(1) Benefits payable under the old-age, survivors, 

13 and disability insurance program established under title 

14 II of the Social Security Act, and benefits payable under 

15 section 3(a), 3(f)(3), 4(a), or 4(f) of the Railroad Retire16 ment Act of 1974, shall be exempt from reduction under 

17 any order issued under this part. 

18 ‘‘(2) Payments made under part A of title XVIII (re19 lating to part A medicare hospital insurance benefits) of 

20 the Social Security Act and payments made under part 

21 C of such title (relating to the Medicare Advantage pro22 gram) insofar as they are attributable to part A of such 

23 title shall be exempt from reduction under any order 

24 issued under this part. 
72 

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1 ‘‘(b) DESCRIPTIONS AND LISTS.—The following 

2 budget accounts or activities shall be exempt from seques3 tration: 

4 ‘‘(1) net interest; 

5 ‘‘(2) all payments to trust funds from excise 

6 taxes or other receipts or collections properly cred7 itable to those trust funds; 

8 ‘‘(3) all payments from one Federal direct 

9 spending budget account to another Federal budget 

10 account; and all intragovernmental funds including 

11 those from which funding is derived primarily from 

12 other Government accounts, except to the extent 

13 that such funds are augmented by direct appropria14 tions for the fiscal year for which the order is in ef15 fect; 

16 ‘‘(4) activities resulting from private donations, 

17 bequests, or voluntary contributions to the Govern18 ment; 

19 ‘‘(5) payments from any revolving fund or 

20 trust-revolving fund (or similar activity) that pro21 vides deposit insurance or other Government insur22 ance, Government guarantees, or any other form of 

23 contingent liability, to the extent those payments re24 sult from contractual or other legally binding com-
73 

•HR 2290 RIH 

1 mitments of the Government at the time of any se2 questration; 

3 ‘‘(6) credit liquidating and financing accounts; 

4 ‘‘(7) the following accounts, which largely fulfill 

5 requirements of the Constitution or otherwise make 

6 payments to which the Government is committed: 

7 ‘‘Administration of Territories, Northern 

8 Mariana Islands Covenant grants (14–0412–0– 

9 1–806); 

10 ‘‘Armed Forces Retirement Home Trust 

11 Fund, payment of claims (84–8930–0–7–705); 

12 ‘‘Bureau of Indian Affairs, miscellaneous 

13 payments to Indians (14–2303–0–1–452); 

14 ‘‘Bureau of Indian Affairs, miscellaneous 

15 trust funds, tribal trust funds (14–9973–0–7– 

16 999); 

17 ‘‘Claims, defense; 

18 ‘‘Claims, judgments, and relief act (20– 

19 1895–0–1–806); 

20 ‘‘Compact of Free Association, economic 

21 assistance pursuant to Public Law 99–658 (14– 

22 0415–0–1–806); 

23 ‘‘Compensation of the President (11– 

24 0001–0–1–802); 
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1 ‘‘Customs Service, miscellaneous perma2 nent appropriations (20–9992–0–2–852); 

3 ‘‘Eastern Indian land claims settlement 

4 fund (14–2202–0–1–806); 

5 ‘‘Farm Credit Administration, Limitation 

6 on Administration Expenses (78-4131-0-3-351); 

7 ‘‘Farm Credit System Financial Assistance 

8 Corporation, interest payments (20–1850–0–1– 

9 351); 

10 ‘‘Internal Revenue collections of Puerto 

11 Rico (20–5737–0–2–852); 

12 ‘‘Panama Canal Commission, operating ex13 penses and capital outlay (95–5190–0–2–403); 

14 ‘‘Payments of Vietnam and USS Pueblo 

15 prisoner-of-war claims (15–0104–0–1–153); 

16 ‘‘Payments to copyright owners (03–5175– 

17 0–2–376); 

18 ‘‘Payments to health care trust funds (75- 

19 0580-0-1-571); 

20 ‘‘Payments to social security trust funds 

21 (75-0404-0-1-651); 

22 ‘‘Payments to the United States terri23 tories, fiscal assistance (14–0418–0–1–801); 
75 

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1 ‘‘Payments to widows and heirs of de2 ceased Members of Congress (00–0215–0–1– 

3 801); 

4 ‘‘Pension Benefit Guaranty Corporation 

5 Fund (16-4204-0-3-601); 

6 ‘‘Salaries of Article III judges; 

7 ‘‘Washington Metropolitan Area Transit 

8 Authority, interest payments (46–0300–0–1– 

9 401); 

10 ‘‘(8) the following noncredit special, revolving, 

11 or trust-revolving funds: 

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

13 ‘‘Comptroller of the Currency; 

14 ‘‘Director of the Office of Thrift Super15 vision; 

16 ‘‘Exchange Stabilization Fund (20–4444– 

17 0–3–155); 

18 ‘‘Federal Housing Finance Board; 

19 ‘‘Foreign Military Sales trust fund (11– 

20 82232–0–7–155); 

21 ‘‘National Credit Union Administration, 

22 central liquidating facility (25-4470-0-3-373); 

23 ‘‘National Credit Union Administration, 

24 credit union insurance fund (25-4468-0-3-373); 
76 

•HR 2290 RIH 

1 ‘‘National Credit Union Administration op2 erating fund (25-4056-0-3-373); and 

3 ‘‘Resolution Trust Corporation Revolving 

4 Fund (22-4055-0-3-373); 

5 ‘‘(9) Thrift Savings Fund; 

6 ‘‘(10) appropriations for the District of Colum7 bia to the extent they are appropriations of locally 

8 raised funds; 

9 ‘‘(11)(A) any amount paid as regular unemploy10 ment compensation by a State from its account in 

11 the Unemployment Trust Fund (established by sec12 tion 904(a) of the Social Security Act); 

13 ‘‘(B) any advance made to a State from the 

14 Federal unemployment account (established by sec15 tion 904(g) of such Act) under title XII of such Act 

16 and any advance appropriated to the Federal unem17 ployment account pursuant to section 1203 of such 

18 Act; and 

19 ‘‘(C) any payment made from the Federal Em20 ployees Compensation Account (as established under 

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

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

23 funds appropriated or transferred to or otherwise 

24 deposited in such Account; and 
77 

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1 ‘‘(12)(A) FDIC, Bank Insurance Fund (51- 

2 4064-0-3-373); 

3 ‘‘(B) FDIC, FSLIC Resolution Fund (51-4065- 

4 0-3-373); and 

5 ‘‘(C) FDIC, Savings Association Insurance 

6 Fund (51-4066-0-3-373). 

7 ‘‘(c) FEDERAL RETIREMENT AND DISABILITY AC8 COUNTS.—The following Federal retirement and disability 

9 accounts shall be exempt from reduction under any order 

10 issued under this part: 

11 ‘‘Civil service retirement and disability fund 

12 (24–8135–0–7–602). 

13 ‘‘Black Lung Disability Trust Fund (20-8144- 

14 0-7-601). 

15 ‘‘Foreign Service Retirement and Disability 

16 Fund (19-8186-0-7-602). 

17 ‘‘District of Columbia Judicial Retirement and 

18 Survivors Annuity Fund (20-8212-0-7-602). 

19 ‘‘Judicial Survivors’ Annuities Fund (10-8110- 

20 0-7-602). 

21 ‘‘Payments to the Railroad Retirement Ac22 counts (60-0113-0-1-601). 

23 ‘‘Tax Court Judges Survivors Annuity Fund 

24 (23-8115-0-7-602). 
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1 ‘‘Employees Life Insurance Fund (24-8424-0-8- 

2 602). 

3 ‘‘(d) FEDERAL ADMINISTRATIVE EXPENSES.— 

4 ‘‘(1) Notwithstanding any provision of law 

5 other than paragraph (3), administrative expenses 

6 incurred by the departments and agencies, including 

7 independent agencies, of the Government in connec8 tion with any program, project, activity, or account 

9 shall be subject to reduction pursuant to any seques10 tration order, without regard to any exemption, ex11 ception, limitation, or special rule otherwise applica12 ble with respect to such program, project, activity, 

13 or account, and regardless of whether the program, 

14 project, activity, or account is self-supporting and 

15 does not receive appropriations. 

16 ‘‘(2) Payments made by the Government to re17 imburse or match administrative costs incurred by a 

18 State or political subdivision under or in connection 

19 with any program, project, activity, or account shall 

20 not be considered administrative expenses of the 

21 Government for purposes of this section, and shall 

22 be subject to sequestration to the extent (and only 

23 to the extent) that other payments made by the Gov24 ernment under or in connection with that program, 

25 project, activity, or account are subject to that re-
79 

•HR 2290 RIH 

1 duction or sequestration; except that Federal pay2 ments made to a State as reimbursement of admin3 istrative costs incurred by that State under or in 

4 connection with the unemployment compensation 

5 programs specified in subsection (a)(11) shall be 

6 subject to reduction or sequestration under this part 

7 notwithstanding the exemption otherwise granted to 

8 such programs under that subsection. 

9 ‘‘(3) Notwithstanding any other provision of 

10 law, the administrative expenses of the following 

11 programs shall be exempt from sequestration: 

12 ‘‘(A) Comptroller of the Currency. 

13 ‘‘(B) Federal Deposit Insurance Corpora14 tion. 

15 ‘‘(C) Office of Thrift Supervision. 

16 ‘‘(D) National Credit Union Administra17 tion. 

18 ‘‘(E) National Credit Union Administra19 tion, central liquidity facility. 

20 ‘‘(F) Federal Retirement Thrift Invest21 ment Board. 

22 ‘‘(G) Resolution Funding Corporation. 

23 ‘‘(H) Resolution Trust Corporation. 

24 ‘‘(I) Board of Governors of the Federal 

25 Reserve System. 
80 

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1 ‘‘(e) VETERANS’ PROGRAMS.—The following pro2 grams shall be exempt from reduction under any order 

3 issued under this part: 

4 ‘‘General Post Funds (36-8180-0-7-705). 

5 ‘‘Veterans Insurance and Indemnities (36-0120- 

6 0-1-701). 

7 ‘‘Service-Disabled Veterans Insurance Funds 

8 (36-4012-0-3-701). 

9 ‘‘Veterans Reopened Insurance Fund (36-4010- 

10 0-3-701). 

11 ‘‘Servicemembers’ Group Life Insurance Fund 

12 (36-4009-0-3-701). 

13 ‘‘Post-Vietnam Era Veterans Education Ac14 count (36-8133-0-7-702). 

15 ‘‘National Service Life Insurance Fund (36- 

16 8132-0-7-701). 

17 ‘‘United States Government Life Insurance 

18 Fund (36-8150-0-7-701). 

19 ‘‘Veterans Special Life Insurance Fund (36- 

20 8455-0-8-701). 

21 ‘‘(f) OPTIONAL EXEMPTION OF DEFENSE AND

22 HOMELAND SECURITY ACCOUNTS.— 

23 ‘‘(1) IN GENERAL.—The President may, with 

24 respect to any defense or homeland security account, 

25 exempt that account from sequestration or provide 
81 

•HR 2290 RIH 

1 for a lower uniform percentage reduction than would 

2 otherwise apply. 

3 ‘‘(2) LIMITATION.—The President may not use 

4 the authority provided by paragraph (1) unless the 

5 President notifies the Congress of the manner in 

6 which such authority will be exercised on or before 

7 the date specified in section 254(a) for the budget 

8 year.’’. 

9 SEC. 203. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES. 

10 (a) IN GENERAL.—Section 256 of the Balanced 

11 Budget and Emergency Deficit Control Act of 1985 is 

12 amended to read as follows: 

13 ‘‘SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL 

14 RULES. 

15 ‘‘(a) NATIONAL WOOL ACT AND THE SPECIAL MILK

16 PROGRAM.—Automatic spending increases are increases 

17 in outlays due to changes in indexes in the following pro18 grams: 

19 ‘‘(1) National Wool Act; and 

20 ‘‘(2) Special milk program. 

21 In those programs all amounts other than the automatic 

22 spending increases shall be exempt from reduction under 

23 any sequestration order. 

24 ‘‘(b) STUDENT LOANS.—For all student loans under 

25 part B or D of title IV of the Higher Education Act of 
82 

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1 1965 made during the period when a sequestration order 

2 under section 254 is in effect as required by section 252 

3 or 253, origination fees under sections 438(c)(2) and 

4 455(c) of that Act shall each be increased by 0.50 percent5 age point. 

6 ‘‘(c) FOSTER CARE AND ADOPTION ASSISTANCE

7 PROGRAMS.—Any sequestration order shall make the re8 duction otherwise required under the foster care and adop9 tion assistance programs (established by part E of title 

10 IV of the Social Security Act) only with respect to pay11 ments and expenditures made by States in which increases 

12 in foster care maintenance payment rates or adoption as13 sistance payment rates (or both) are to take effect during 

14 the fiscal year involved, and only to the extent that the 

15 required reduction can be accomplished by applying a uni16 form percentage reduction to the Federal matching pay17 ments that each such State would otherwise receive under 

18 section 474 of that Act (for such fiscal year) for that por19 tion of the State’s payments attributable to the increases 

20 taking effect during that year. No State’s matching pay21 ments from the Government for foster care maintenance 

22 payments or for adoption assistance maintenance pay23 ments may be reduced by a percentage exceeding the ap24 plicable domestic sequestration percentage. No State may, 

25 after the date of the enactment of this Act, make any 
83 

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1 change in the timetable for making payments under a 

2 State plan approved under part E of title IV of the Social 

3 Security Act which has the effect of changing the fiscal 

4 year in which expenditures under such part are made. 

5 ‘‘(d) LOW-INCOME PROGRAMS.—(1) Benefit pay6 ments or payments to States or other entities for the pro7 grams listed in paragraph (2) shall not be reduced by 

8 more than 2 percent under any sequestration order. When 

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

10 benefit reductions shall occur starting with the payment 

11 made at the start of January. When reduced under a with12 in-session sequestration order, those benefit reductions 

13 shall occur starting with the next periodic payment. 

14 ‘‘(2) The programs referred to in paragraph (1) are 

15 the following: 

16 ‘‘Child Nutrition (12-3539-0-1-605). 

17 ‘‘Food Stamp Programs (12-3505-0-1-605). 

18 ‘‘Grants to States for Medicaid (75-0512-0-1- 

19 551). 

20 ‘‘State Children’s Health Insurance Fund (75- 

21 0515-0-1-551). 

22 ‘‘Supplemental Security Income Program (75- 

23 0406-0-1-609). 

24 ‘‘Temporary Assistance for Needy Families (75- 

25 1552-0-1-609). 
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1 ‘‘Special supplemental nutrition program for 

2 women, infants, and children (WIC) (12-3510-0-1- 

3 605). 

4 ‘‘(e) VETERANS’ MEDICAL CARE.—The maximum 

5 permissible reduction in budget authority for Veterans’ 

6 medical care (36–0160–0–1–703) for any fiscal year, pur7 suant to an order issued under section 254, shall be 2 

8 percent. 

9 ‘‘(f) FEDERAL RETIREMENT PROGRAMS.— 

10 ‘‘(1) For each of the programs listed in para11 graph (2) and except as provided in paragraph (3), 

12 monthly (or other periodic) benefit payments shall 

13 be reduced by the uniform percentage applicable to 

14 direct spending sequestrations for such programs, 

15 which shall in no case exceed 2 percent under any 

16 sequestration order. When reduced under an end-of17 session sequestration order, those benefit reductions 

18 shall occur starting with the payment made at the 

19 start of January or 7 weeks after the order is 

20 issued, whichever is later. When reduced under a 

21 within-session sequestration order, those benefit re22 ductions shall occur starting with the next periodic 

23 payment. 

24 ‘‘(2) The programs subject to paragraph (1) 

25 are: 
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1 ‘‘Central Intelligence Agency Retirement 

2 and Disability Fund (56-3400-0-1-054). 

3 ‘‘Comptrollers General Retirement System 

4 (05-0107-0-1-801)Payments to the Foreign 

5 Service Retirement and Disability Fund (72- 

6 1036-0-1-153). 

7 ‘‘Judicial Officer’ Retirement Fund (10- 

8 8122-0-7-602). 

9 ‘‘Claims Judges’ Retirement Fund (10- 

10 8124-0-7-602). 

11 ‘‘Pensions for former Presidents (47-0105- 

12 0-1-802). 

13 ‘‘National Oceanic and Atmospheric Ad14 ministration Retirement (13-1450-0-1-306). 

15 ‘‘Railroad Industry Pension Fund (60- 

16 8011-0-7-601). 

17 ‘‘Retired pay, Coast Guard (70-0602-0-1- 

18 403). 

19 ‘‘Retirement pay and medical benefits for 

20 commissioned officers, Public Health Service 

21 (75-0379-0-1-551). 

22 ‘‘Payments to Civil Service Retirement and 

23 Disability Fund (24-0200-0-1-805). 

24 ‘‘Payments to the Foreign Service Retire25 ment and Disability Fund (72-1036-0-1-153) 
86 

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1 ‘‘Payments to Judiciary Trust Funds (10- 

2 0941-0-1-752). 

3 ‘‘(g) VETERANS PROGRAMS.—To achieve the total 

4 percentage reduction required by any order issued under 

5 this part, the percentage reduction that shall apply to pay6 ments under the following programs shall in no event ex7 ceed 2 percent: 

8 ‘‘Canteen Service Revolving Fund (36-4014-0- 

9 3-705). 

10 ‘‘Medical Center Research Organizations (36- 

11 4026-0-3-703). 

12 ‘‘Disability Compensation Benefits (36-0102-0- 

13 1-701). 

14 ‘‘Education Benefits (36-0137-0-1-702). 

15 ‘‘Vocational Rehabilitation and Employment 

16 Benefits (36-0135-0-1-702). 

17 ‘‘Pensions Benefits (36-0154-0-1-701). 

18 ‘‘Burial Benefits (36-0139-0-1-701). 

19 ‘‘Guaranteed Transitional Housing Loans For 

20 Homeless Veterans Program Account (36-1119-0-1- 

21 704). 

22 ‘‘Housing Direct Loan Financing Account (36- 

23 4127-0-1-704). 

24 ‘‘Housing Guaranteed Loan Financing Account 

25 (36-4129-0-3-704). 
87 

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1 ‘‘Vocational Rehabilitation and Education Di2 rect Loan Financing Account (36-4259-0-3-702). 

3 ‘‘(h) MILITARY HEALTH AND RETIREMENT.—To 

4 achieve the total percentage reduction in military retire5 ment required by any order issued under this part, the 

6 percentage reduction that shall apply to payments under 

7 the Military retirement fund (97–8097–0–7–602), pay8 ments to the military retirement fund (97–0040–0–1– 

9 054), and the Defense Health Program (97–0130–0–1– 

10 051) shall in no event exceed 2 percent. 

11 ‘‘(i) MEDICARE PROGRAM.— 

12 ‘‘(1) CALCULATION OF REDUCTION IN INDI13 VIDUAL PAYMENT AMOUNTS.—To achieve the total 

14 percentage reduction in those programs required by 

15 any order issued under this part, the percentage re16 duction that shall apply to payments under the 

17 health insurance programs under title XVIII of the 

18 Social Security Act (other than payments described 

19 in section 255(a)(2)) that are subject to such order 

20 for services furnished after any sequestration order 

21 is issued shall be such that the reduction made in 

22 payments under that order shall achieve the required 

23 total percentage reduction in those payments for 

24 that fiscal year as determined on a 12-month basis. 

25 However, the percentage reduction under any such 
88 

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1 program shall in no case exceed 2 percent under any 

2 sequestration order. 

3 ‘‘(2) TIMING OF APPLICATION OF REDUC4 TIONS.—If a reduction is made under paragraph (1) 

5 in payment amounts pursuant to a sequestration 

6 order, the reduction shall be applied to payment for 

7 services furnished after the effective date of the 

8 order. 

9 ‘‘(3) NO INCREASE IN BENEFICIARY CHARGES

10 IN ASSIGNMENT-RELATED CASES.—If a reduction in 

11 payment amounts is made under paragraph (1) for 

12 services for which payment under part B of title 

13 XVIII of the Social Security Act is made on the 

14 basis of an assignment described in section 

15 1842(b)(3)(B)(ii), in accordance with section 

16 1842(b)(6)(B), or under the procedure described in 

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

18 the services shall be considered to have accepted 

19 payment of the reasonable charge for the services, 

20 less any reduction in payment amount made pursu21 ant to a sequestration order, as payment in full. 

22 ‘‘(4) APPLICATION TO PARTS C AND D.—The 

23 reductions otherwise required under parts C and D 

24 of title XVIII of the Social Security Act with respect 

25 to a fiscal year shall be applied to the calendar year 
89 

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1 that begins after the end of the fiscal year to which 

2 the applicable sequestration order applies. 

3 ‘‘(j) FEDERAL PAY.— 

4 ‘‘(1) IN GENERAL.—For purposes of any order 

5 issued under section 254, new budget authority to 

6 pay Federal personnel shall be reduced by the appli7 cable uniform percentage, but no sequestration order 

8 may reduce or have the effect of reducing the rate 

9 of pay to which any individual is entitled under any 

10 statutory pay system (as increased by any amount 

11 payable under section 5304 of title 5, United States 

12 Code, or section 302 of the Federal Employees Pay 

13 Comparability Act of 1990) or the rate of any ele14 ment of military pay to which any individual is enti15 tled under title 37, United States Code, or any in16 crease in rates of pay which is scheduled to take ef17 fect under section 5303 of title 5, United States 

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

19 or any other provision of law. 

20 ‘‘(2) DEFINITIONS.—For purposes of this sub21 section: 

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

23 have the meaning given that term in section 

24 5302(1) of title 5, United States Code. 
90 

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

2 means— 

3 ‘‘(i) the elements of compensation of 

4 members of the uniformed services speci5 fied in section 1009 of title 37, United 

6 States Code, 

7 ‘‘(ii) allowances provided members of 

8 the uniformed services under sections 403a 

9 and 405 of such title, and 

10 ‘‘(iii) cadet pay and midshipman pay 

11 under section 203(c) of such title. 

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

13 have the meaning given that term in section 

14 101(3) of title 37, United States Code. 

15 ‘‘(k) CHILD SUPPORT ENFORCEMENT PROGRAM.— 

16 Any sequestration order shall accomplish the full amount 

17 of any required reduction in expenditures under sections 

18 455 and 458 of the Social Security Act by reducing the 

19 Federal matching rate for State administrative costs 

20 under such program, as specified (for the fiscal year in21 volved) in section 455(a) of such Act, to the extent nec22 essary to reduce such expenditures by that amount. 

23 ‘‘(l) EXTENDED UNEMPLOYMENT COMPENSATION.— 

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

25 under the Federal-State Extended Unemployment Com-
91 

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1 pensation Act of 1970 for any week of unemployment oc2 curring during any period with respect to which payments 

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

4 percentage not to exceed the percentage by which the Fed5 eral payment to the State under section 204 of such Act 

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

7 ‘‘(2) A reduction by a State in accordance with sub8 paragraph (A) shall not be considered as a failure to fulfill 

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

10 Revenue Code of 1954. 

11 ‘‘(m) COMMODITY CREDIT CORPORATION.— 

12 ‘‘(1) POWERS AND AUTHORITIES OF THE COM13 MODITY CREDIT CORPORATION.—This title shall not 

14 restrict the Commodity Credit Corporation in the 

15 discharge of its authority and responsibility as a cor16 poration to buy and sell commodities in world trade, 

17 to use the proceeds as a revolving fund to meet 

18 other obligations and otherwise operate as a corpora19 tion, the purpose for which it was created. 

20 ‘‘(2) REDUCTION IN PAYMENTS MADE UNDER

21 CONTRACTS.—(A) Payments and loan eligibility 

22 under any contract entered into with a person by the 

23 Commodity Credit Corporation prior to the time any 

24 sequestration order has been issued shall not be re25 duced by an order subsequently issued. Subject to 
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1 subparagraph (B), after any sequestration order is 

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

3 the Commodity Credit Corporation— 

4 ‘‘(i) under the terms of any one-year con5 tract entered into in or after such fiscal year 

6 and after the issuance of the order; and 

7 ‘‘(ii) out of an entitlement account, 

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

9 guarantee entity) shall be subject to reduction under 

10 the order. 

11 ‘‘(B) Each contract entered into with producers 

12 or producer cooperatives with respect to a particular 

13 crop of a commodity and subject to reduction under 

14 subparagraph (A) shall be reduced in accordance 

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

16 not all, contracts applicable to a crop of a com17 modity have been entered into prior to the issuance 

18 of any sequestration order, the order shall provide 

19 that the necessary reduction in payments under con20 tracts applicable to the commodity be uniformly ap21 plied to all contracts for succeeding crops of the 

22 commodity, under the authority provided in para23 graph (3). 

24 ‘‘(3) DELAYED REDUCTION IN OUTLAYS PER25 MISSIBLE.—Notwithstanding any other provision of 
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1 this title, if any sequestration order is issued with 

2 respect to a fiscal year, any reduction under the 

3 order applicable to contracts described in paragraph 

4 (2) may provide for reductions in outlays for the ac5 count involved to occur in the fiscal years following 

6 the fiscal year to which the order applies. 

7 ‘‘(4) UNIFORM PERCENTAGE RATE OF REDUC8 TION AND OTHER LIMITATIONS.—All reductions de9 scribed in paragraph (2) that are required to be 

10 made in connection with any sequestration order 

11 with respect to a fiscal year— 

12 ‘‘(A) shall be made so as to ensure that 

13 outlays for each program, project, activity, or 

14 account involved are reduced by a percentage 

15 rate that is uniform for all such programs, 

16 projects, activities, and accounts, and may not 

17 be made so as to achieve a percentage rate of 

18 reduction in any such item exceeding the rate 

19 specified in the order; and 

20 ‘‘(B) with respect to commodity price sup21 port and income protection programs, shall be 

22 made in such manner and under such proce23 dures as will attempt to ensure that— 
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1 ‘‘(i) uncertainty as to the scope of 

2 benefits under any such program is mini3 mized; 

4 ‘‘(ii) any instability in market prices 

5 for agricultural commodities resulting from 

6 the reduction is minimized; and 

7 ‘‘(iii) normal production and mar8 keting relationships among agricultural 

9 commodities (including both contract and 

10 non-contract commodities) are not dis11 torted. 

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

13 of subparagraph (B) of the preceding sentence, 

14 the President shall take into consideration that 

15 reductions under an order may apply to pro16 grams for two or more agricultural commodities 

17 that use the same type of production or mar18 keting resources or that are alternative com19 modities among which a producer could choose 

20 in making annual production decisions. 

21 ‘‘(5) CERTAIN AUTHORITY NOT TO BE LIM22 ITED.—Nothing in this title shall limit or reduce in 

23 any way any appropriation that provides the Com24 modity Credit Corporation with funds to cover the 

25 Corporation’s net realized losses. 
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1 ‘‘(n) 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 ‘‘(o) 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 

15 percentage 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 

9 in 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 se13 questered, the increase (in the applicable index) that 

14 was disregarded as a result of that sequestration 

15 shall not be taken into account in any subsequent 

16 fiscal year. 

17 ‘‘(6) Except as otherwise provided, sequestra18 tion in accounts for which obligations are indefinite 

19 shall be taken in a manner to ensure that obliga20 tions in the fiscal year of a sequestration and suc21 ceeding fiscal years are reduced, from the level that 

22 would actually have occurred, by the applicable se23 questration percentage.’’. 

24 (b) CONFORMING AMENDMENT.—The table of con25 tents set forth in 250(c) of the Balanced Budget and 
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1 Emergency Deficit Control Act of 1985 is amended by 

2 amending the item relating to section 256 to read as fol3 lows: 

‘‘Sec. 256. Exceptions, limitations, and special rules.’’. 

4 SEC. 204. POINT OF ORDER. 

5 (a) ENTITLEMENT POINT OF ORDER.—Section 312 

6 of the Congressional Budget Act of 1974 is amended by 

7 adding at the end the following new subsection: 

8 ‘‘(g) ENTITLEMENT POINT OF ORDER.—It shall not 

9 be in order in the House of Representatives or the Senate 

10 to consider any bill, joint resolution, amendment, or con11 ference report that— 

12 ‘‘(1) increases aggregate level of direct spending 

13 for any ensuing fiscal year or 

14 ‘‘(2) includes any provision that has the effect 

15 of modifying the application of section 252A of the 

16 Balanced Budget and Emergency Deficit Control 

17 Act of 1985 to any entitlement program subject to 

18 sequestration or exempt from sequestration under 

19 such Act.’’. 

20 SEC. 205. TECHNICAL AND CONFORMING AMENDMENTS. 

21 The Balanced Budget and Emergency Deficit Control 

22 Act of 1985 is amended as follows: 

23 (1) Section 251(a)(1) is amended by inserting 

24 ‘‘, section 252A,’’ after ‘‘section 252’’. 
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1 (2) Section 254(c)(4)(B) is amended by insert2 ing ‘‘or section 252A’’ after ‘‘section 252’’. 

3 (3) Section 254(c) is amended by redesignating 

4 paragraph (5) as paragraph (6) and by inserting 

5 after paragraph (4) the following new paragraph: 

6 ‘‘(5) DIRECT SPENDING CONTROL SEQUESTRA7 TION REPORTS.—The preview reports shall set forth, 

8 for the current year and the budget year, estimates 

9 for each of the following: 

10 ‘‘(A) The total level of direct spending for 

11 all programs, projects, and activities (excluding 

12 social security). 

13 ‘‘(B) The sequestration percentage or (if 

14 the required sequestration percentage is greater 

15 than the maximum allowable percentage) per16 centages necessary to comply with section 

17 252A.’’. 

18 (4) Section 254(f) is amended by redesignating 

19 paragraphs (4) and (5) as paragraphs (5) and (6) 

20 and by inserting after paragraph (3) the following 

21 new paragraph: 

22 ‘‘(4) DIRECT SPENDING CONTROL SEQUESTRA23 TION REPORTS.—The final reports shall contain all 

24 the information required in the direct spending con25 trol sequestration preview reports. In addition, these 
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1 reports shall contain, for the budget year, for each 

2 account to be sequestered, estimates of the baseline 

3 level of sequesterable budgetary resources and re4 sulting outlays and the amount of budgetary re5 sources to be sequestered and resulting outlay reduc6 tions. The reports shall also contain estimates of the 

7 effects on outlays of the sequestration in each out8 year for direct spending programs.’’. 

9 (5) Section 258C(a)(1) is amended by inserting 

10 ‘‘, 252A,’’ after ‘‘section 252’’. 

11 (6) Section 275(b) is amended by striking 

12 ‘‘2002’’ and inserting ‘‘2016’’ and by striking the 

13 second sentence thereof. 

14 SEC. 206. ESTABLISHMENT OF BUDGET PROTECTION MAN15 DATORY ACCOUNT. 

16 (a) BUDGET PROTECTION MANDATORY ACCOUNT.— 

17 Title III of the Congressional Budget Act of 1974 (as 

18 amended by section 521) is further amended by adding 

19 at the end the following new sections: 

20 ‘‘BUDGET PROTECTION MANDATORY ACCOUNT

21 ‘‘SEC. 320. (a) ESTABLISHMENT OF ACCOUNT.—The 

22 chairman of the Committee on the Budget of the House 

23 of Representatives and of the Senate shall each maintain 

24 an account to be known as the ‘Budget Protection Manda25 tory Account’. The Account shall be divided into entries 

26 corresponding to the House or Senate committees, as ap-
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1 plicable, that received allocations under section 302(a) in 

2 the most recently adopted concurrent resolution on the 

3 budget, except that it shall not include the Committee on 

4 Appropriations of that House and each entry shall consist 

5 of the ‘First Year Budget Protection Balance’ and the 

6 ‘Five Year Budget Protection Balance’. 

7 ‘‘(b) COMPONENTS.—Each entry shall consist only of 

8 amounts credited to it under subsection (c). No entry of 

9 a negative amount shall be made. 

10 ‘‘(c) CREDITING OF AMOUNTS TO ACCOUNT.—(1) 

11 Whenever a Member or Senator, as the case may be, offers 

12 an amendment to a bill that reduces the amount of man13 datory budget authority provided either under current law 

14 or proposed to be provided by the bill under consideration, 

15 that Member or Senator may state the portion of such 

16 reduction achieved in the first year covered by the most 

17 recently adopted concurrent resolution on the budget and 

18 in addition the portion of such reduction achieved in the 

19 first five years covered by the most recently adopted con20 current resolution on the budget that shall be— 

21 ‘‘(A) credited to the First Year Budget Protec22 tion Balance and the Five Year Budget Protection 

23 Balance in the House or Senate, as applicable; 

24 ‘‘(B) used to offset an increase in other new 

25 budget authority; 
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1 ‘‘(C) allowed to remain within the applicable 

2 section 302(a) allocation; or 

3 ‘‘(D) used to offset a decrease in receipts. 

4 If no such statement is made, the amount of reduction 

5 in new budget authority resulting from the amendment 

6 shall be credited to the First Year Budget Protection Bal7 ance and the Five Year Budget Protection Balance, as ap8 plicable, if the amendment is agreed to. 

9 ‘‘(2) Except as provided by paragraph (3), the chair10 man of the Committee on the Budget of the House or Sen11 ate, as applicable, shall, upon the engrossment of any bill, 

12 other than an appropriation bill, by the House or Senate, 

13 as applicable, credit to the applicable entry balances 

14 amounts of new budget authority and outlays equal to the 

15 net amounts of reductions in budget authority and in out16 lays resulting from amendments agreed to by that House 

17 to that bill. 

18 ‘‘(3) When computing the net amounts of reductions 

19 in budget authority and in outlays resulting from amend20 ments agreed to by the House or Senate, as applicable, 

21 to a bill, the chairman of the Committee on the Budget 

22 of that House shall only count those portions of such 

23 amendments agreed to that were so designated by the 

24 Members or Senators offering such amendments as 

25 amounts to be credited to the First Year Budget Protec-
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1 tion Balance and the Five Year Budget Protection Bal2 ance, or that fall within the last sentence of paragraph 

3 (1). 

4 ‘‘(4) The chairman of the Committee on the Budget 

5 of the House and of the Senate shall each maintain a run6 ning tally of the amendments adopted reflecting increases 

7 and decreases of budget authority in the bill as reported 

8 to its House. This tally shall be available to Members or 

9 Senators during consideration of any bill by that House. 

10 ‘‘(d) CALCULATION OF LOCK-BOX SAVINGS IN

11 HOUSE AND SENATE.—For the purposes of enforcing sec12 tion 302(a), upon the engrossment of any bill, other than 

13 an appropriation bill, by the House or Senate, as applica14 ble, the amount of budget authority and outlays calculated 

15 pursuant to subsection (c)(3) shall be counted against the 

16 302(a) allocation provided to the applicable committee or 

17 committees of that House which reported the bill as if the 

18 amount calculated pursuant to subsection (c)(3) was in19 cluded in the bill just engrossed. 

20 ‘‘(e) DEFINITION.—As used in this section, the term 

21 ‘appropriation bill’ means any general or special appro22 priation bill, and any bill or joint resolution making sup23 plemental, deficiency, or continuing appropriations 

24 through the end of fiscal year 2005 or any subsequent fis25 cal year, as the case may be.’’. 
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1 Subtitle B—Discretionary 

2 Spending Limits 

3 SEC. 211. ENFORCING DISCRETIONARY SPENDING LIMITS. 

4 (a) DISCRETIONARY SPENDING LIMITS.—Sections 

5 251(b) and (c) of the Balanced Budget and Emergency 

6 Deficit Control of Act of 1985 are amended to read as 

7 follows: 

8 ‘‘(b) DISCRETIONARY SPENDING LIMIT.—As used in 

9 this part, the term ‘discretionary spending limit’ means— 

10 ‘‘(1) with respect to fiscal year 2007— 

11 ‘‘(A) $860,703,000,000 in new budget au12 thority of which no more than 

13 $403,372,107,000 shall be for the nondefense 

14 category; and 

15 ‘‘(B) $lllll in outlays of which no 

16 more than $lllll shall be for the non17 defense category; 

18 ‘‘(2) with respect to fiscal year 2008— 

19 ‘‘(A) $879,638,466,000 in new budget au20 thority of which no more than 

21 $403,931,766,000 shall be for the nondefense 

22 category; and 

23 ‘‘(B) $lllll in outlays of which no 

24 more than $lllll shall be for the non25 defense category; 
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1 ‘‘(3) with respect to fiscal year 2009— 

2 ‘‘(A) $868,990,512,000 in new budget au3 thority of which no more than 

4 $403,779,838,000 shall be for the nondefense 

5 category; and 

6 ‘‘(B) $lllll in outlays of which no 

7 more than $lllll shall be for the non8 defense category; 

9 ‘‘(4) with respect to fiscal year 2010— 

10 ‘‘(A) $918,768,304,000 in new budget au11 thority of which no more than 

12 $403,253,992,000 shall be for the nondefense 

13 category; and 

14 ‘‘(B) $lllll in outlays of which no 

15 more than $lllll shall be for the non16 defense category; 

17 ‘‘(5) with respect to fiscal year 2011— 

18 ‘‘(A) $938,981,206,000 in new budget au19 thority of which no more than 

20 $402,330,807,000 shall be for the nondefense 

21 category; and 

22 ‘‘(B) $lllll in outlays of which no 

23 more than $lllll shall be for the non24 defense category; 

25 ‘‘(6) with respect to fiscal year 2012— 
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1 ‘‘(A) $959,638,793,000 in new budget au2 thority of which no more than 

3 $400,985,728,000 shall be for the nondefense 

4 category; and 

5 ‘‘(B) $lllll in outlays of which no 

6 more than $lllll shall be for the non7 defense category; 

8 ‘‘(7) with respect to fiscal year 2013— 

9 ‘‘(A) $980,750,846,000 in new budget au10 thority of which no more than 

11 $399,193,005,000 shall be for the nondefense 

12 category; and 

13 ‘‘(B) $lllll in outlays of which no 

14 more than $lllll shall be for the non15 defense category; 

16 ‘‘(8) with respect to fiscal year 2014— 

17 ‘‘(A) $1,002,327,365,000 in new budget 

18 authority of which no more than 

19 $396,925,653,000 shall be for the nondefense 

20 category; and 

21 ‘‘(B) $lllll in outlays of which no 

22 more than $lllll shall be for the non23 defense category; and 

24 ‘‘(9) with respect to fiscal year 2015— 
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1 ‘‘(A) $1,024,378,567,000 in new budget 

2 authority of which no more than 

3 $394,155,384,000 shall be for the nondefense 

4 category; 

5 ‘‘(B) $lllll in outlays of which no 

6 more than $lllll shall be for the non7 defense category; and 

8 ‘‘(9) with respect to fiscal year 2016— 

9 ‘‘(A) $1,046,914,895,000 in new budget 

10 authority of which no more than 

11 $390,852,562,000 shall be for the nondefense 

12 category; and 

13 ‘‘(B) $lllll in outlays of which no 

14 more than $lllll shall be for the non15 defense category;’’. 

16 (b) DISCRETIONARY SPENDING LIMIT POINT OF

17 ORDER.—Section 312 of the Congressional Budget Act of 

18 1974 (as amended by section 214(a)) is further amended 

19 by adding at the end the following new subsection: 

20 ‘‘(h) DISCRETIONARY SPENDING LIMIT POINT OF

21 ORDER.—It shall not be in order in the House of Rep22 resentatives or the Senate to consider any bill, joint resolu23 tion, amendment, or conference report that— 

24 ‘‘(1) increases the discretionary spending limits 

25 for any ensuing fiscal year after the budget year; or 
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1 ‘‘(2) would cause the discretionary spending 

2 limits for the budget year to be breached.’’. 

3 (c) ADVANCE APPROPRIATION POINT OF ORDER.— 

4 Section 312 of the Congressional Budget Act of 1974 (as 

5 amended by this section) is further amended by adding 

6 at the end the following new subsection: 

7 ‘‘(i) ADVANCE APPROPRIATION POINT OF ORDER.— 

8 It shall not be in order in the House of Representatives 

9 or the Senate to consider any appropriation bill or joint 

10 resolution, or amendment thereto or conference report 

11 thereon, that provides advance discretionary new budget 

12 authority that first becomes available for any fiscal year 

13 after the budget year at an amount for any program, 

14 project, or activity above the amount of appropriations for 

15 fiscal year 2005 for such program, project, or activity.’’. 

16 SEC. 212. ESTABLISHMENT OF BUDGET PROTECTION DIS17 CRETIONARY ACCOUNT. 

18 ‘‘BUDGET PROTECTION DISCRETIONARY ACCOUNT

19 ‘‘SEC. 321. (a) ESTABLISHMENT OF ACCOUNT.—The 

20 chairman of the Committee on the Budget of the House 

21 of Representatives and of the Senate shall each maintain 

22 an account to be known as the ‘Budget Protection Discre23 tionary Account’. The Account shall be divided into entries 

24 corresponding to the subcommittees of the Committee on 
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1 Appropriations of that House and each entry shall consist 

2 of the ‘Budget Protection Balance’. 

3 ‘‘(b) COMPONENTS.—Each entry shall consist only of 

4 amounts credited to it under subsection (c). No entry of 

5 a negative amount shall be made. 

6 ‘‘(c) CREDITING OF AMOUNTS TO ACCOUNT.—(1) 

7 Whenever a Member or Senator, as the case may be, offers 

8 an amendment to an appropriation bill to reduce new 

9 budget authority in any account, that Member or Senator 

10 may state the portion of such reduction that shall be— 

11 ‘‘(A) credited to the Budget Protection Balance; 

12 ‘‘(B) used to offset an increase in new budget 

13 authority in any other account; or 

14 ‘‘(C) allowed to remain within the applicable 

15 section 302(b) suballocation. 

16 If no such statement is made, the amount of reduction 

17 in new budget authority resulting from the amendment 

18 shall be credited to the Budget Protection Balance, as ap19 plicable, if the amendment is agreed to. 

20 ‘‘(2) Except as provided by paragraph (3), the chair21 man of the Committee on the Budget of the House or Sen22 ate, as applicable, shall, upon the engrossment of any ap23 propriation bill by the House or Senate, as applicable, 

24 credit to the applicable entry balances amounts of new 

25 budget authority and outlays equal to the net amounts of 
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1 reductions in budget authority and in outlays resulting 

2 from amendments agreed to by that House to that bill. 

3 ‘‘(3) When computing the net amounts of reductions 

4 in new budget authority and in outlays resulting from 

5 amendments agreed to by the House or Senate, as applica6 ble, to an appropriation bill, the chairman of the Com7 mittee on the Budget of that House shall only count those 

8 portions of such amendments agreed to that were so des9 ignated by the Members offering such amendments as 

10 amounts to be credited to the Budget Protection Balance, 

11 or that fall within the last sentence of paragraph (1). 

12 ‘‘(4) The chairman of the Committee on the Budget 

13 of the House and of the Senate shall each maintain a run14 ning tally of the amendments adopted reflecting increases 

15 and decreases of budget authority in the bill as reported 

16 to its House. This tally shall be available to Members or 

17 Senators during consideration of any bill by that House. 

18 ‘‘(d) CALCULATION OF LOCK-BOX SAVINGS IN

19 HOUSE AND SENATE.—(1) For the purposes of enforcing 

20 section 302(a), upon the engrossment of any appropriation 

21 bill by the House or Senate, as applicable, the amount of 

22 budget authority and outlays calculated pursuant to sub23 section (c)(3) shall be counted against the 302(a) alloca24 tion provided to the Committee on Appropriations as if 
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1 the amount calculated pursuant to subsection (c)(3) was 

2 included in the bill just engrossed. 

3 ‘‘(2) For purposes of enforcing section 302(b), upon 

4 the engrossment of any appropriation bill by the House 

5 or Senate, as applicable, the 302(b) allocation provided to 

6 the subcommittee for the bill just engrossed shall be 

7 deemed to have been reduced by the amount of budget 

8 authority and outlays calculated, pursuant to subsection 

9 (c)(3). 

10 ‘‘(e) DEFINITION.—As used in this section, the term 

11 ‘appropriation bill’ means any general or special appro12 priation bill, and any bill or joint resolution making sup13 plemental, deficiency, or continuing appropriations 

14 through the end of fiscal year 2006 or any subsequent fis15 cal year, as the case may be.’’. 

16 (b) CONFORMING AMENDMENT.—The table of con17 tents set forth in section 1(b) of the Congressional Budget 

18 and Impoundment Control Act of 1974 is amended by in19 serting after the item relating to section 319 the following 

20 new items: 

‘‘Sec. 320. Budget protection mandatory account. 

‘‘Sec. 321. Budget protection discretionary account.’’. 

21 SEC. 213. REVENUE ADJUSTMENT. 

22 If an amendment is designated to be used to offset 

23 a decrease in receipts for a fiscal year pursuant to section 

24 320(c)(1)(D) or section 321(c)(1)(D) of the Congressional 
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1 Budget Act of 1974, then the applicable level of revenues 

2 for such fiscal year for purposes of section 311(a) of such 

3 Act shall be reduced by the amount of such amendment. 

4 Subtitle C—Long-term Unfunded 

5 Obligations 

6 SEC. 221. LONG-TERM UNFUNDED OBLIGATIONS. 

7 (a) IN GENERAL.—Title IV of the Congressional 

8 Budget Act of 1974 is amended by adding at the end the 

9 following: 

10 PART C—LONG-TERM UNFUNDED OBLIGATIONS 

11 ‘‘SEC. 441. ANALYSIS OF LONG-TERM UNFUNDED OBLIGA12 TIONS. 

13 ‘‘Beginning in fiscal year 2007, the President’s budg14 et submission shall include an analysis of long-term un15 funded obligations. This analysis shall include: 

16 ‘‘(1) An analysis of the impact of long-term un17 funded obligations in applicable entitlement pro18 grams on the long-term level of unified budget out19 lays and the unified budget surplus or deficit, in re20 lation to the projected level of the Gross Domestic 

21 Product. 

22 ‘‘(2) A report on the impact of legislation en23 acted during the previous session of Congress that 

24 increases the long-term unfunded obligation in any 

25 applicable group of entitlement program. 
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1 ‘‘(3) An analysis of the impact of legislation 

2 proposed in the President’s budget on the long-term 

3 unfunded obligation in any applicable entitlement 

4 program. 

5 ‘‘SEC. 442. POINT OF ORDER AGAINST LEGISLATION IN6 CREASING LONG-TERM UNFUNDED OBLIGA7 TIONS. 

8 ‘‘It shall not be in order in the House of Representa9 tives or in the Senate to consider any bill, joint resolution, 

10 motion, amendment, or conference report that would in11 crease the long-term unfunded obligation in any applicable 

12 group of entitlement programs. 

13 ‘‘SEC. 443. STANDARD FOR DETERMINING INCREASE IN 

14 LONG-TERM UNFUNDED OBLIGATION. 

15 ‘‘For the purpose of this part, legislation shall be con16 sidered to increase the long-term unfunded obligation of 

17 an applicable group of entitlement programs if it either— 

18 ‘‘(1) increases the excess of the discounted 

19 present value of the expenditures of programs in the 

20 group above the discounted present value of the 

21 dedicated receipts of programs in the group over a 

22 long-term estimating period by more than an appli23 cable threshold; or 

24 ‘‘(2) increases the dollar level of the expendi25 tures of programs in the group above the dedicated 
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1 receipts of programs in the group above the dedi2 cated receipts of programs in the group in the last 

3 year of the estimating period by more than the ap4 plicable threshold. 

5 ‘‘SEC. 444. LONG-TERM UNFUNDED OBLIGATION ANALYSES 

6 BY CONGRESSIONAL BUDGET OFFICE. 

7 The Director of the Congressional Budget Office 

8 shall, to the extent practicable, prepare for each bill or 

9 resolution of a public character reported by any committee 

10 of the House of Representatives or the Senate (except the 

11 Committee on Appropriations of each House), and submit 

12 to such committee— 

13 ‘‘(1) an estimate of any increase of the long14 term unfunded obligation of any applicable entitle15 ment program which would be incurred in carrying 

16 out such bill or resolution as measured by the in17 crease of the excess of the discounted present value 

18 of the expenditures of such program above the dis19 counted present value of the dedicated receipts of 

20 such program over a long-term estimating period by 

21 more than an applicable threshold; and 

22 ‘‘(2) an estimate of any increase in the dollar 

23 level of the expenditures of such program above the 

24 dedicated receipts of such program above the dedi25 cated receipts of such program in the last year of 
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1 the estimating period by more than the applicable 

2 threshold. 

3 The estimates and description so submitted shall be in4 cluded in the report accompanying such bill or resolution 

5 if timely submitted to such committee before such report 

6 is filed. 

7 ‘‘SEC. 445. DEFINITIONS. 

8 ‘‘As used in this part— 

9 ‘‘(1) the term ‘applicable entitlement program’ 

10 shall be defined as any one of the following pro11 grams: 

12 ‘‘(A) Old Age, Survivors, and Disability In13 surance. 

14 ‘‘(B) Medicare. 

15 ‘‘(C) Civilian retirement and disability 

16 (combined Civil Service Retirement System and 

17 Federal Employees Retirement System). 

18 ‘‘(D) Foreign Service Retirement and Dis19 ability (combined Foreign Service Retirement 

20 and Disability System and Foreign Service Pen21 sion System). 

22 ‘‘(E) Retired Employees Health Benefits. 

23 ‘‘(F) Military Retirement System. 

24 ‘‘(G) Uniformed Services Retiree Health 

25 Care System. 
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1 ‘‘(H) Railroad Retirement System (com2 bined Rail Industry Pension Fund, Social Secu3 rity Equivalent Benefit Account, and National 

4 Railroad Retirement Investment Trust). 

5 ‘‘(I) Supplemental Security Income (SSI). 

6 ‘‘(J) For estimates made on or after Janu7 ary 1, 2006, veterans disability compensation. 

8 ‘‘(K) Any other entitlement program with 

9 regularly available long-term estimates. 

10 ‘‘(2) The term ‘entitlement program with regu11 larly available long-term estimates’ means a program 

12 for which the Director of the Congressional Budget 

13 Office, in consultation with the Committees on the 

14 Budget of the House of Representatives and the 

15 Senate and the Director of the Office of Manage16 ment and Budget, has determined that it is feasible 

17 to make long-term estimates of expenditures and 

18 dedicated receipts based on explicit demographic, 

19 economic, and other estimating assumptions. The 

20 Director shall notify the House and Senate Commit21 tees on the Budget in writing, whenever he or she 

22 makes such a determination. 

23 ‘‘(3) The term ‘applicable group of entitlement 

24 programs’ shall be defined as any of the following: 
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1 ‘‘(A) Old Age, Survivors, and Disability In2 surance. 

3 ‘‘(B) All applicable entitlement programs 

4 except Old Age, Survivors, and Disability Insur5 ance. 

6 ‘‘(4) The term ‘long-term estimating period’ 

7 shall be defined as 75 years, starting with the cur8 rent year, for all applicable entitlement programs ex9 cept for Old Age, Survivors, and Disability Insur10 ance. For Old Age, Survivors, and Disability Insur11 ance, the term shall be defined as the infinite period 

12 of years utilized in the most recent annual report of 

13 the Board of Trustees provided pursuant to section 

14 201(c)(2) of the Social Security Act. 

15 ‘‘(5) The term ‘last year of the estimating pe16 riod’ shall be defined as the 75th year of the long17 term estimating period. 

18 ‘‘(6) The term ‘dedicated receipts’ shall be de19 fined, for all applicable entitlement programs other 

20 than Medicare, as taxes and fees received from the 

21 public, payments received from Federal agencies on 

22 behalf of Federal agency employees who are partici23 pants in the program, transfers received by the pro24 gram under section 7(c)(2) of the Railroad Retire25 ment Act of 1974 (45 U.S.C. 231f(c)(2)), and trans-
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1 fers from the general fund of amounts equivalent to 

2 income tax receipts under section 86 of the Internal 

3 Revenue Code. Dedicated receipts shall not include 

4 payments from the general fund to amortize a pro5 gram’s unfunded liability or payments of interest on 

6 a program’s trust fund holdings. For Medicare, 

7 ‘dedicated receipts’ shall be defined according to sec8 tion 801(c)(3) of the Medicare Prescription Drug, 

9 Improvement, and Modernization Act of 2003. 

10 ‘‘(7) The term ‘expenditures’ shall be defined, 

11 for all applicable entitlement programs other than 

12 Medicare, to include benefit payments, administra13 tive expenses to the extent paid from a dedicated 

14 fund, and transfers to other programs made under 

15 section 7(c)(2) of the Railroad Retirement Act of 

16 1974 (45 U.S.C. 231f(c)(2)). For Medicare, ‘expend17 itures’ shall be defined according to section 

18 801(c)(4) of the Medicare prescription Drug, Im19 provement, and Modernization Act of 2003. 

20 ‘‘(8) The term ‘applicable threshold’ shall be 

21 defined as: 

22 ‘‘(A) For a group of applicable entitlement 

23 programs over a long-term estimating period— 

24 ‘‘(i) 0.02 percent of the present value 

25 of the taxable payroll of the group of pro-
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1 grams over the estimating period, for legis2 lation affecting Old Age, Survivors, and 

3 Disability Insurance or Medicare; and 

4 ‘‘(ii) 1 percent of the present value of 

5 the expenditures over the estimating period 

6 of the programs in the group that are af7 fected by the legislation. 

8 ‘‘(B) For a group of applicable entitlement 

9 programs in the last year of the estimating pe10 riod— 

11 ‘‘(i) 0.02 percent of the taxable pay12 roll of the group of programs in that year, 

13 for legislation affecting Old Age, Survivors, 

14 and Disability Insurance or Medicare; 

15 ‘‘(ii) 0.01 percent of Gross Domestic 

16 Product in that year; or 

17 ‘‘(iii) 1 percent of the expenditures in 

18 that year of the programs in the group 

19 that are affected by the legislation.’’. 

20 (b) CONFORMING AMENDMENT.—The table of con21 tents set forth in section 1(b) of the Congressional Budget 

22 and Impoundment Control Act of 1974 is amended by 

23 adding after the item relating to section 428 the following: 

‘PART C—LONG-TERM UNFUNDED OBLIGATIONS

‘‘Sec. 441. Analysis of long-term unfunded obligations. 
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‘‘Sec. 442. Point of order against legislation increasing long-term unfunded obligations. 

‘‘Sec. 443. Standard for determining increase in long-term unfunded obligation. 

‘‘Sec. 444. Long-term unfunded obligation analyses by congressional budget office. 

‘‘Sec. 445. Definitions. 

1 SEC. 222. POINTS OF ORDER. 

2 Section 904 of the Congressional Budget Act of 1974 

3 is amended as follows: 

4 (1) Subsection (c)(1) is amended by adding 

5 ‘‘442,’’ after ‘‘310(d)(2), 313,’’. 

6 (2) Subsection (d)(2) is amended by adding 

7 ‘‘442,’’ after ‘‘310(d)(2), 313,’’. 

8 SEC. 223. SOCIAL SECURITY. 

9 Section 13302(a) of subtitle C of the Budget En10 forcement Act of 1990 is amended to read as follows: 

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

12 House of Representatives to consider any bill, or joint res13 olution, as reported, or any amendment thereto or con14 ference report thereon, if, upon enactment, such legisla15 tion under consideration would increase the long-term un16 funded obligation of the OASDI program, as defined in 

17 section 443 of the Congressional Budget Act of 1974.’’. 
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1 TITLE III—COMBATING WASTE, 

2 FRAUD, AND ABUSE. 

3 Subtitle A—Sunsetting 

4 SEC. 301. REAUTHORIZATION OF DISCRETIONARY PRO5 GRAMS AND UNEARNED ENTITLEMENTS. 

6 (a) FISCAL YEAR 2009.—Effective October 1, 2008, 

7 spending authority for each unearned entitlement and 

8 high-cost discretionary spending program is frozen at then 

9 current levels unless such spending authority is reauthor10 ized after the date of enactment of this Act. 

11 (b) FISCAL YEAR 2010.—Effective October 1, 2009, 

12 spending authority for each discretionary spending pro13 gram (not including high-cost discretionary spending pro14 grams) is frozen at then current levels unless such spend15 ing authority is reauthorized after the date of enactment 

16 of this Act. 

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

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

19 entitlement not earned by service or paid for in total 

20 or in part by assessments or contributions such as 

21 Social Security, veterans’ benefits, retirement pro22 grams, and medicare; and 

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

24 means the most expensive one-third of discretionary 

25 program within each budget function account. 
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1 SEC. 302. 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 appropriates funds above cur6 rent levels unless such appropriation has been previously 

7 authorized by law. 

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

9 waived or suspended in the House of Representatives or 

10 the Senate only by the affirmative vote of two-thirds of 

11 the Members, duly chosen and sworn. 

12 SEC. 303. DECENNIAL SUNSETTING. 

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

14 the first day of the fiscal year beginning in the first decen15 nial census year after the year 2010 and each 10 years 

16 thereafter, the spending authority described in section 

17 301(a) is terminated unless such spending authority is re18 authorized after the last date the spending authority was 

19 required to be reauthorized under this title. 

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

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

22 the first decennial census year after the year 2010 and 

23 each 10 years thereafter, the spending authority described 

24 in section 301(b) is terminated unless such spending au25 thority is reauthorized after the last date the spending au26 thority was required to be reauthorized under this title. 
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1 Subtitle B—Enhanced Rescissions 

2 of Budget Authority Identified 

3 by the President as Wasteful 

4 Spending 

5 SEC. 311. ENHANCED CONSIDERATION OF CERTAIN PRO6 POSED RESCISSIONS. 

7 (a) IN GENERAL.—Part B of title X of the Congres8 sional Budget and Impoundment Control Act of 1974 (2 

9 U.S.C. 681 et seq.) is amended by redesignating sections 

10 1013 through 1017 as sections 1014 through 1018, re11 spectively, and by inserting after section 1012 the fol12 lowing new section: 

13 ‘‘ENHANCED CONSIDERATION OF CERTAIN PROPOSED

14 RESCISSIONS

15 ‘‘SEC. 1013. (a) PROPOSED RESCISSION OF BUDGET

16 AUTHORITY IDENTIFIED AS WASTEFUL SPENDING.—The 

17 President may propose, at the time and in the manner 

18 provided in subsection (b), the rescission of any budget 

19 authority provided in an appropriation Act that he identi20 fies as wasteful spending. If the President proposes a re21 scission of budget authority, he may also propose to reduce 

22 the appropriate discretionary spending limits for new 

23 budget authority and outlays flowing therefrom set forth 

24 in section 251(b) of the Balanced Budget and Emergency 

25 Deficit Control Act of 1985 by an amount that does not 
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1 exceed the amount of the proposed rescission. Funds made 

2 available for obligation under this procedure may not be 

3 proposed for rescission again under this section. 

4 ‘‘(b) TRANSMITTAL OF SPECIAL MESSAGE.— 

5 ‘‘(1) The President may transmit to Congress a 

6 special message proposing to rescind amounts of 

7 budget authority and include with that special mes8 sage a draft bill that, if enacted, would only rescind 

9 that budget authority unless the President also pro10 poses a reduction in the appropriate discretionary 

11 spending limits set forth in section 251(b) of the 

12 Balanced Budget and Emergency Deficit Control 

13 Act of 1985. That bill shall clearly identify the 

14 amount of budget authority that is proposed to be 

15 rescinded for each program, project, or activity to 

16 which that budget authority relates. 

17 ‘‘(2) In the case of an appropriation Act that 

18 includes accounts within the jurisdiction of more 

19 than one subcommittee of the Committee on Appro20 priations, the President in proposing to rescind 

21 budget authority under this section shall send a sep22 arate special message and accompanying draft bill 

23 for accounts within the jurisdiction of each sub24 committee. 
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1 ‘‘(3) Each special message shall specify, with 

2 respect to the budget authority proposed to be re3 scinded, the following: 

4 ‘‘(A) The amount of budget authority 

5 which he proposes to be rescinded. 

6 ‘‘(B) Any account, department, or estab7 lishment of the Government to which such 

8 budget authority is available for obligation, and 

9 the specific project or governmental functions 

10 involved. 

11 ‘‘(C) The reasons why the budget authority 

12 should be rescinded, including why he considers 

13 it to be wasteful spending. 

14 ‘‘(D) To the maximum extent practicable, 

15 the estimated fiscal, economic, and budgetary 

16 effect (including the effect on outlays and re17 ceipts in each fiscal year) of the proposed re18 scission. 

19 ‘‘(E) All facts, circumstances, and consid20 erations relating to or bearing upon the pro21 posed rescission and the decision to effect the 

22 proposed rescission, and to the maximum extent 

23 practicable, the estimated effect of the proposed 

24 rescission upon the objects, purposes, and pro-
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1 grams for which the budget authority is pro2 vided. 

3 ‘‘(F) A reduction in the appropriate discre4 tionary spending limits set forth in section 

5 251(b) of the Balanced Budget and Emergency 

6 Deficit Control Act of 1985, if proposed by the 

7 President. 

8 ‘‘(c) PROCEDURES FOR EXPEDITED CONSIDER9 ATION.— 

10 ‘‘(1)(A) Before the close of the second legisla11 tive day of the House of Representatives after the 

12 date of receipt of a special message transmitted to 

13 Congress under subsection (b), the majority leader 

14 or minority leader of the House of Representatives 

15 shall introduce (by request) the draft bill accom16 panying that special message. If the bill is not intro17 duced as provided in the preceding sentence, then, 

18 on the third legislative day of the House of Rep19 resentatives after the date of receipt of that special 

20 message, any Member of that House may introduce 

21 the bill. 

22 ‘‘(B) The bill shall be referred to the Com23 mittee on Appropriations. The committee shall re24 port the bill without substantive revision and with or 

25 without recommendation. The bill shall be reported 
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1 not later than the seventh legislative day of that 

2 House after the date of receipt of that special mes3 sage. If that committee fails to report the bill within 

4 that period, that committee shall be automatically 

5 discharged from consideration of the bill, and the 

6 bill shall be placed on the appropriate calendar. 

7 ‘‘(C) A vote on final passage of the bill shall be 

8 taken in the House of Representatives on or before 

9 the close of the 10th legislative day of that House 

10 after the date of the introduction of the bill in that 

11 House. If the bill is passed, the Clerk of the House 

12 of Representatives shall cause the bill to be en13 grossed, certified, and transmitted to the Senate 

14 within one calendar day of the day on which the bill 

15 is passed. 

16 ‘‘(2)(A) A motion in the House of Representa17 tives to proceed to the consideration of a bill under 

18 this section shall be highly privileged and not debat19 able. An amendment to the motion shall not be in 

20 order, nor shall it be in order to move to reconsider 

21 the vote by which the motion is agreed to or dis22 agreed to. 

23 ‘‘(B) Debate in the House of Representatives 

24 on a bill under this section shall not exceed 4 hours, 

25 which shall be divided equally between those favoring 
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1 and those opposing the bill. A motion to further 

2 limit debate shall not be debatable. It shall not be 

3 in order to move to recommit a bill under this sec4 tion or to move to reconsider the vote by which the 

5 bill is agreed to or disagreed to. 

6 ‘‘(C) Appeals from decisions of the Chair relat7 ing to the application of the Rules of the House of 

8 Representatives to the procedure relating to a bill 

9 under this section shall be decided without debate. 

10 ‘‘(D) Except to the extent specifically provided 

11 in the preceding provisions of this subsection, con12 sideration of a bill under this section shall be gov13 erned by the Rules of the House of Representatives. 

14 It shall not be in order in the House of Representa15 tives to consider any rescission bill introduced pursu16 ant to the provisions of this section under a suspen17 sion of the rules or under a special rule. 

18 ‘‘(3) A bill transmitted to the Senate pursuant 

19 to paragraph (1)(D) shall be referred to its Com20 mittee on Appropriations. That committee shall re21 port the bill without substantive revision and with or 

22 without recommendation. The bill shall be reported 

23 not later than the seventh legislative day of the Sen24 ate after it receives the bill. A committee failing to 

25 report the bill within such period shall be automati-
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1 cally discharged from consideration of the bill, and 

2 the bill shall be placed upon the appropriate cal3 endar. 

4 ‘‘(4)(A) A motion in the Senate to proceed to 

5 the consideration of a bill under this section shall be 

6 privileged and not debatable. An amendment to the 

7 motion shall not be in order, nor shall it be in order 

8 to move to reconsider the vote by which the motion 

9 is agreed to or disagreed to. 

10 ‘‘(B) Debate in the Senate on a bill under this 

11 section, and all debatable motions and appeals in 

12 connection therewith (including debate pursuant to 

13 subparagraph (C)), shall not exceed 10 hours. The 

14 time shall be equally divided between, and controlled 

15 by, the majority leader and the minority leader or 

16 their designees. 

17 ‘‘(C) Debate in the Senate or any debatable mo18 tion or appeal in connection with a bill under this 

19 section shall be limited to not more than 1 hour, to 

20 be equally divided between, and controlled by, the 

21 mover and the manager of the bill, except that in 

22 the event the manager of the bill is in favor of any 

23 such motion or appeal, the time in opposition there24 to, shall be controlled by the minority leader or his 

25 designee. Such leaders, or either of them, may, from 
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1 time under their control of the passage of a bill, 

2 allot additional time to any Senator during the con3 sideration of any debatable motion or appeal. 

4 ‘‘(D) A motion in the Senate to further limit 

5 debate on a bill under this section is not debatable. 

6 A motion to recommit a bill under this section is not 

7 in order. 

8 ‘‘(d) AMENDMENT AND DIVISIONS PROHIBITED.—No 

9 amendment to a bill considered under this section shall 

10 be in order in either the House of Representatives or the 

11 Senate. It shall not be in order to demand a division of 

12 the question in the House of Representatives (or in a Com13 mittee of the Whole) or in the Senate. No motion to sus14 pend the application of this subsection shall be in order 

15 in either House, nor shall it be in order in either House 

16 to suspend the application of this subsection by unanimous 

17 consent. 

18 ‘‘(e) REQUIREMENT TO MAKE AVAILABLE FOR OBLI19 GATION.—Any amount of budget authority proposed to be 

20 rescinded in a special message transmitted to Congress 

21 under subsection (b) shall be made available for obligation 

22 on the day after the date on which either House rejects 

23 the bill transmitted with that special message. 

24 ‘‘(f) DEFINITIONS.—For purposes of this section: 
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1 ‘‘(1) The term ‘appropriation Act’ means any 

2 general or special appropriation Act, and any Act or 

3 joint resolution making supplemental, deficiency, or 

4 continuing appropriations. 

5 ‘‘(2) The term ‘legislative day’ means, with re6 spect to either House of Congress, any day of ses7 sion. 

8 ‘‘(3) The term ‘rescind’ means, with respect to 

9 an appropriation Act, to reduce the amount of budg10 et authority appropriated in that Act, and reducing 

11 budget authority shall include reducing obligation 

12 limitations set forth in that Act.’’. 

13 (b) EXERCISE OF RULEMAKING POWERS.—Section 

14 904 of the Congressional Budget Act of 1974 (2 U.S.C. 

15 621 note) is amended— 

16 (1) in subsection (a), by striking ‘‘and 1017’’ 

17 and inserting ‘‘1012, and 1017’’; and 

18 (2) in subsection (d), by striking ‘‘section 

19 1017’’ and inserting ‘‘sections 1012 and 1017’’. 

20 (c) CONFORMING AMENDMENTS.— 

21 (1) Section 1011 of the Congressional Budget 

22 Act of 1974 (2 U.S.C. 682(5)) is amended by re23 pealing paragraphs (3) and (5) and by redesignating 

24 paragraph (4) as paragraph (3). 
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1 (2) Section 1014 of such Act (2 U.S.C. 685) is 

2 amended— 

3 (A) in subsection (b)(1), by striking ‘‘or 

4 the reservation’’; and 

5 (B) in subsection (e)(1), by striking ‘‘or a 

6 reservation’’ and by striking ‘‘or each such res7 ervation’’. 

8 (3) Section 1015(a) of such Act (2 U.S.C. 686) 

9 is amended by striking ‘‘is to establish a reserve or’’, 

10 by striking ‘‘the establishment of such a reserve or’’, 

11 and by striking ‘‘reserve or’’ each other place it ap12 pears. 

13 (4) Section 1017 of such Act (2 U.S.C. 687) is 

14 amended— 

15 (A) in subsection (a), by striking ‘‘rescis16 sion bill introduced with respect to a special 

17 message or’’; 

18 (B) in subsection (b)(1), by striking ‘‘re19 scission bill or’’, by striking ‘‘bill or’’ the second 

20 place it appears, by striking ‘‘rescission bill with 

21 respect to the same special message or’’, and by 

22 striking ‘‘, and the case may be,’’; 

23 (C) in subsection (b)(2), by striking ‘‘bill 

24 or’’ each place it appears; 
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1 (D) in subsection (c), by striking ‘‘rescis2 sion’’ each place it appears and by striking ‘‘bill 

3 or’’ each place it appears; 

4 (E) in subsection (d)(1), by striking ‘‘re5 scission bill or’’ and by striking ‘‘, and all 

6 amendments thereto (in the case of a rescission 

7 bill)’’; 

8 (F) in subsection (d)(2)— 

9 (i) by striking the first sentence; 

10 (ii) by amending the second sentence 

11 to read as follows: ‘‘Debate on any debat12 able motion or appeal in connection with 

13 an impoundment resolution shall be limited 

14 to 1 hour, to be equally divided between, 

15 and controlled by, the mover and the man16 ager of the resolution, except that in the 

17 event that the manager of the resolution is 

18 in favor of any such motion or appeal, the 

19 time in opposition thereto shall be con20 trolled by the minority leader or his des21 ignee.’’; 

22 (iii) by striking the third sentence; 

23 and 

24 (iv) in the fourth sentence, by striking 

25 ‘‘rescission bill or’’ and by striking 
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1 ‘‘amendment, debatable motion,’’ and by 

2 inserting ‘debatable motion’; 

3 (G) in paragraph (d)(3), by striking the 

4 second and third sentences; and 

5 (H) by striking paragraphs (4), (5), (6), 

6 and (7) of paragraph (d). 

7 (d) CLERICAL AMENDMENTS.—The table of sections 

8 for subpart B of title X of the Congressional Budget and 

9 Impoundment Control Act of 1974 is amended by redesig10 nating the item relating to sections 1014 through 1018 

11 as items 1015 through 1019, respectively, and by inserting 

12 after the item relating to section 1012 the following new 

13 item: 

‘‘Sec. 1013. Enhanced consideration of certain proposed rescissions.’’. 

14 Subtitle C—Commission to 

15 Eliminate Waste, Fraud, and Abuse 

16 SEC. 331. ESTABLISHMENT OF COMMISSION. 

17 (a) ESTABLISHMENT.—There is established the Com18 mission to Eliminate Waste, Fraud, and Abuse (hereafter 

19 in this subtitle referred to as the ‘‘Commission’’). 

20 (b) MEMBERSHIP.— 

21 (1) IN GENERAL.—The Commission shall con22 sist of 12 members, all of whom shall be appointed 

23 by the President not later than 90 days after the 

24 date of enactment of this Act. 
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1 (2) CHAIRPERSON AND VICE CHAIRPERSON.— 

2 The President shall designate a chairperson and vice 

3 chairperson from among the members of the Com4 mission. 

5 (c) PERIOD OF APPOINTMENT; VACANCIES.—Mem6 bers shall be appointed for the life of the Commission. Any 

7 vacancy in the Commission shall not affect its powers, but 

8 shall be filled in the same manner as the original appoint9 ment. 

10 (d) MEETINGS.— 

11 (1) INITIAL MEETING.—Not later than 30 days 

12 after the date on which all members of the Commis13 sion have been appointed, the Commission shall hold 

14 its first meeting. 

15 (2) SUBSEQUENT MEETINGS.—The Commission 

16 shall meet at the call of the chairperson. 

17 (e) QUORUM.—A majority of the members of the 

18 Commission shall constitute a quorum, but a lesser num19 ber of members may hold hearings. 

20 SEC. 332. DUTIES OF THE COMMISSION. 

21 (a) DEFINITIONS.—In this section, the following defi22 nitions shall apply: 

23 (1) AGENCY.—The term ‘‘agency’’ has the 

24 meaning given the term ‘‘Executive agency’’ under 

25 section 105 of title 5, United States Code. 
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1 (2) PROGRAM.—The term ‘‘program’’ means 

2 any activity or function of an agency. 

3 (b) IN GENERAL.—The Commission shall— 

4 (1) evaluate all agencies and programs within 

5 those agencies, using the criteria under subsection 

6 (c); and 

7 (2) submit to Congress— 

8 (A) a plan with recommendations of the 

9 agencies and programs that should be realigned 

10 or eliminated; and 

11 (B) proposed legislation to implement the 

12 plan described under subparagraph (A). 

13 (c) CRITERIA.— 

14 (1) DUPLICATIVE.—If 2 or more agencies or 

15 programs are performing the same essential function 

16 and the function can be consolidated or streamlined 

17 into a single agency or program, the Commission 

18 shall recommend that the agency or program be re19 aligned. 

20 (2) WASTEFUL OR INEFFICIENT.—The Com21 mission shall recommend the realignment or elimi22 nation of any agency or program that has wasted 

23 Federal funds by— 

24 (A) egregious spending; 
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1 (B) mismanagement of resources and per2 sonnel; or 

3 (C) use of such funds for personal benefit 

4 or the benefit of a special interest group. 

5 (3) OUTDATED, IRRELEVANT, OR FAILED.—The 

6 Commission shall recommend the elimination of any 

7 agency or program that— 

8 (A) has completed its intended purpose; 

9 (B) has become irrelevant; or 

10 (C) has failed to meet its objectives. 

11 (d) SYSTEMATIC ASSESSMENT OF PROGRAMS.— 

12 (1) IN GENERAL.—Not later than 1 year after 

13 the date of enactment of this Act, the President 

14 shall— 

15 (A) establish a systematic method for as16 sessing the effectiveness and accountability of 

17 agency programs; and 

18 (B) submit, to the Commission, assessments of not less than 1 19 ⁄2 of all programs cov20 ered under subsection (b)(1) that use the meth21 od established under subparagraph (A). 

22 (2) METHOD OBJECTIVES.—The method estab23 lished under paragraph (1) shall— 

24 (A) recognize different types of federal 

25 programs; 
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1 (B) assess programs based primarily on 

2 the achievement of performance goals (as de3 fined under section 1115(f)(4) of title 31, 

4 United States Code); and 

5 (C) assess programs based in part on the 

6 adequacy of the program’s performance meas7 ures, financial management, and other factors 

8 determined by the President. 

9 (3) DEVELOPMENT.—The method established 

10 under paragraph (1) shall not be implemented until 

11 it has been reviewed and accepted by the Commis12 sion. 

13 (4) CONSIDERATION OF ASSESSMENTS.—The 

14 Commission shall consider assessments submitted 

15 under this subsection when evaluating programs 

16 under subsection (b)(1). 

17 (e) COMMON PERFORMANCE MEASURES.—Not later 

18 than 1 year after the date of enactment of this Act, the 

19 President shall identify common performance measures 

20 for programs covered in subsection (b)(1) that have simi21 lar functions and, to the extent feasible, provide the Com22 mission with data on such performance measures. 

23 (f) REPORT.— 

24 (1) IN GENERAL.—Not later than 2 years after 

25 the date of enactment of this Act, the Commission 
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1 shall submit to the President and Congress a report 

2 that includes— 

3 (A) the plan described under subsection 

4 (b)(2)(A), with supporting documentation for 

5 all recommendations; and 

6 (B) the proposed legislation described 

7 under subsection (b)(2)(B). 

8 (2) RELOCATION OF FEDERAL EMPLOYEES.— 

9 The proposed legislation under paragraph (1)(B) 

10 shall provide that if the position of an employee of 

11 an agency is eliminated as a result of the implemen12 tation of the plan under paragraph (1)(A), the af13 fected agency shall make reasonable efforts to relo14 cate such employee to another position within the 

15 agency or within another Federal agency. 

16 SEC. 333. POWERS OF THE COMMISSION. 

17 (a) HEARINGS.—The Commission or, at its direction, 

18 any subcommittee or member of the Commission, may, for 

19 the purpose of carrying out this subtitle— 

20 (1) hold such hearings, sit and act at such 

21 times and places, take such testimony, receive such 

22 evidence, and administer such oaths as any member 

23 of the Commission considers advisable; 
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1 (2) require, by subpoena or otherwise, the at2 tendance and testimony of such witnesses as any 

3 member of the Commission considers advisable; and 

4 (3) require, by subpoena or otherwise, the pro5 duction of such books, records, correspondence, 

6 memoranda, papers, documents, tapes, and other 

7 evidentiary materials relating to any matter under 

8 investigation by the Commission. 

9 (b) SUBPOENAS.— 

10 (1) ISSUANCE.—Subpoenas issued under sub11 section (a) shall bear the signature of the chair12 person of the Commission and shall be served by any 

13 person or class of persons designated by the chair14 person for that purpose. 

15 (2) ENFORCEMENT.—In the case of contumacy 

16 or failure to obey a subpoena issued under sub17 section (a), the United States district court for the 

18 judicial district in which the subpoenaed person re19 sides, is served, or may be found, may issue an order 

20 requiring such person to appear at any designated 

21 place to testify or to produce documentary or other 

22 evidence. Any failure to obey the order of the court 

23 may be punished by the court as a contempt of that 

24 court. 
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1 (c) INFORMATION FROM FEDERAL AGENCIES.—The 

2 Commission may secure directly from any Federal depart3 ment or agency such information as the Commission con4 siders necessary to carry out this Act. Upon request of 

5 the chairperson of the Commission, the head of such de6 partment or agency shall furnish such information to the 

7 Commission. 

8 (d) POSTAL SERVICES.—The Commission may use 

9 the United States mails in the same manner and under 

10 the same conditions as other departments and agencies of 

11 the Government. 

12 (e) GIFTS.—The Commission may accept, use, and 

13 dispose of gifts or donations of services or property. 

14 SEC. 334. COMMISSION PERSONNEL MATTERS. 

15 (a) COMPENSATION OF MEMBERS.— 

16 (1) NON-FEDERAL MEMBERS.—Except as pro17 vided under subsection (b), each member of the 

18 Commission who is not an officer or employee of the 

19 Government shall not be compensated. 

20 (2) FEDERAL OFFICERS OR EMPLOYEES.—All 

21 members of the Commission who are officers or em22 ployees of the United States shall serve without com23 pensation in addition to that received for their serv24 ices as officers or employees of the United States. 
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1 (b) TRAVEL EXPENSES.—The members of the Com2 mission shall be allowed travel expenses, including per 

3 diem in lieu of subsistence, at rates authorized for employ4 ees of agencies under subchapter I of chapter 57 of title 

5 5, United States Code, while away from their homes or 

6 regular places of business in the performance of services 

7 for the Commission. 

8 (c) STAFF.— 

9 (1) IN GENERAL.—The chairperson of the Com10 mission may, without regard to the civil service laws 

11 and regulations, appoint and terminate an executive 

12 director and such other additional personnel as may 

13 be necessary to enable the Commission to perform 

14 its duties. The employment of an executive director 

15 shall be subject to confirmation by the Commission. 

16 (2) COMPENSATION.—Upon the approval of the 

17 chairperson, the executive director may fix the com18 pensation of the executive director and other per19 sonnel without regard to chapter 51 and subchapter 

20 III of chapter 53 of title 5, United States Code, re21 lating to classification of positions and General 

22 Schedule pay rates, except that the rate of pay for 

23 the executive director and other personnel may not 

24 exceed the maximum rate payable for a position at 
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1 GS–15 of the General Schedule under section 5332 

2 of such title. 

3 (3) PERSONNEL AS FEDERAL EMPLOYEES.— 

4 (A) IN GENERAL.—The executive director 

5 and any personnel of the Commission who are 

6 employees shall be employees under section 

7 2105 of title 5, United States Code, for pur8 poses of chapters 63, 81, 83, 84, 85, 87, 89, 

9 and 90 of that title. 

10 (B) MEMBERS OF COMMISSION.—Subpara11 graph (A) shall not be construed to apply to 

12 members of the Commission. 

13 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

14 Government employee may be detailed to the Commission 

15 without reimbursement, and such detail shall be without 

16 interruption or loss of civil service status or privilege. 

17 (e) PROCUREMENT OF TEMPORARY AND INTERMIT18 TENT SERVICES.—The chairperson of the Commission 

19 may procure temporary and intermittent services under 

20 section 3109(b) of title 5, United States Code, at rates 

21 for individuals which do not exceed the daily equivalent 

22 of the annual rate of basic pay prescribed for level V of 

23 the Executive Schedule under section 5316 of such title. 
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1 SEC. 335. TERMINATION OF THE COMMISSION. 

2 The Commission shall terminate 90 days after the 

3 date on which the Commission submits the report under 

4 section 232(f). 

5 SEC. 336. CONGRESSIONAL CONSIDERATION OF REFORM 

6 PROPOSALS. 

7 (a) DEFINITIONS.—In this section: 

8 (1) IMPLEMENTATION BILL.—The term ‘‘imple9 mentation bill’’ means only a bill which is introduced 

10 as provided under subsection (b), and contains the 

11 proposed legislation included in the report submitted 

12 to Congress under section 232, without modification. 

13 (2) CALENDAR DAY.—The term ‘‘calendar day’’ 

14 means a calendar day other than 1 on which either 

15 House is not in session because of an adjournment 

16 of more than 3 days to a date certain. 

17 (b) INTRODUCTION; REFERRAL; AND REPORT OR

18 DISCHARGE.— 

19 (1) INTRODUCTION.—On the first calendar day 

20 on which both Houses are in session, on or imme21 diately following the date on which the report is sub22 mitted to Congress under section 232, a single im23 plementation bill shall be introduced (by request)— 

24 (A) in the Senate by the Majority Leader 

25 of the Senate, for himself and the Minority 

26 Leader of the Senate, or by Members of the 
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1 Senate designated by the Majority Leader and 

2 Minority Leader of the Senate; and 

3 (B) in the House of Representatives by the 

4 Speaker of the House of Representatives, for 

5 himself and the Minority Leader of the House 

6 of Representatives, or by Members of the House 

7 of Representatives designated by the Speaker 

8 and Minority Leader of the House of Rep9 resentatives. 

10 (2) REFERRAL.—The implementation bills in11 troduced under paragraph (1) shall be referred to 

12 any appropriate committee of jurisdiction in the 

13 Senate and any appropriate committee of jurisdic14 tion in the House of Representatives. A committee 

15 to which an implementation bill is referred under 

16 this paragraph may report such bill to the respective 

17 House without amendment. 

18 (3) REPORT OR DISCHARGE.—If a committee to 

19 which an implementation bill is referred has not re20 ported such bill by the end of the 15th calendar day 

21 after the date of the introduction of such bill, such 

22 committee shall be immediately discharged from fur23 ther consideration of such bill, and upon being re24 ported or discharged from the committee, such bill 

25 shall be placed on the appropriate calendar. 
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1 (c) FLOOR CONSIDERATION.— 

2 (1) IN GENERAL.—When the committee to 

3 which an implementation bill is referred has re4 ported, or has been discharged under subsection 

5 (b)(3), it is at any time thereafter in order (even 

6 though a previous motion to the same effect has 

7 been disagreed to) for any Member of the respective 

8 House to move to proceed to the consideration of the 

9 implementation bill, and all points of order against 

10 the implementation bill (and against consideration of 

11 the implementation bill) are waived. The motion is 

12 highly privileged in the House of Representatives 

13 and is privileged in the Senate and is not debatable. 

14 The motion is not subject to amendment, or to a 

15 motion to postpone, or to a motion to proceed to the 

16 consideration of other business. A motion to recon17 sider the vote by which the motion is agreed to or 

18 disagreed to shall not be in order. If a motion to 

19 proceed to the consideration of the implementation 

20 bill is agreed to, the implementation bill shall remain 

21 the unfinished business of the respective House until 

22 disposed of. 

23 (2) AMENDMENTS.—An implementation bill 

24 may not be amended in the Senate or the House of 

25 Representatives. 
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1 (3) DEBATE.—Debate on the implementation 

2 bill, and on all debatable motions and appeals in 

3 connection therewith, shall be limited to not more 

4 than 10 hours, which shall be divided equally be5 tween those favoring and those opposing the resolu6 tion. A motion further to limit debate is in order and 

7 not debatable. An amendment to, or a motion to 

8 postpone, or a motion to proceed to the consider9 ation of other business, or a motion to recommit the 

10 implementation bill is not in order. A motion to re11 consider the vote by which the implementation bill is 

12 agreed to or disagreed to is not in order. 

13 (4) VOTE ON FINAL PASSAGE.—Immediately 

14 following the conclusion of the debate on an imple15 mentation bill, and a single quorum call at the con16 clusion of the debate if requested in accordance with 

17 the rules of the appropriate House, the vote on final 

18 passage of the implementation bill shall occur. 

19 (5) RULINGS OF THE CHAIR ON PROCEDURE.— 

20 Appeals from the decisions of the Chair relating to 

21 the application of the rules of the Senate or the 

22 House of Representatives, as the case may be, to the 

23 procedure relating to an implementation bill shall be 

24 decided without debate. 
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1 (d) COORDINATION WITH ACTION BY OTHER

2 HOUSE.—If, before the passage by 1 House of an imple3 mentation bill of that House, that House receives from 

4 the other House an implementation bill, then the following 

5 procedures shall apply: 

6 (1) NONREFERRAL.—The implementation bill 

7 of the other House shall not be referred to a com8 mittee. 

9 (2) VOTE ON BILL OF OTHER HOUSE.—With 

10 respect to an implementation bill of the House re11 ceiving the implementation bill— 

12 (A) the procedure in that House shall be 

13 the same as if no implementation bill had been 

14 received from the other House; but 

15 (B) the vote on final passage shall be on 

16 the implementation bill of the other House. 

17 (e) RULES OF SENATE AND HOUSE OF REPRESENTA18 TIVES.—This section is enacted by Congress— 

19 (1) as an exercise of the rulemaking power of 

20 the Senate and House of Representatives, respec21 tively, and as such it is deemed a part of the rules 

22 of each House, respectively, but applicable only with 

23 respect to the procedure to be followed in that 

24 House in the case of an implementation bill de25 scribed in subsection (a), and it supersedes other 
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1 rules only to the extent that it is inconsistent with 

2 such rules; and 

3 (2) with full recognition of the constitutional 

4 right of either House to change the rules (so far as 

5 relating to the procedure of that House) at any time, 

6 in the same manner, and to the same extent as in 

7 the case of any other rule of that House. 

8 SEC. 337. AUTHORIZATION OF APPROPRIATIONS. 

9 There are authorized to be appropriated such sums 

10 as may be necessary for carrying out this subtitle for each 

11 of the fiscal years 2006 through 2008. 

12 TITLE IV—TRUTH IN 

13 ACCOUNTING 

14 Subtitle A—Accrual Funding of 

15 Pensions and Retirement Pay 

16 for Federal Employees and Uni17 formed Services Personnel 

18 SEC. 401. CIVIL SERVICE RETIREMENT SYSTEM. 

19 (a) CIVIL SERVICE RETIREMENT AND DISABILITY

20 FUND.—Chapter 83 of title 5, United States Code, is 

21 amended— 

22 (1) in section 8331— 

23 (A) in paragraph (17)— 

24 (i) by striking ‘‘normal cost’’ and in25 serting ‘‘normal cost percentage’’; and 
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1 (ii) by inserting ‘‘and standards 

2 (using dynamic assumptions)’’ after ‘‘prac3 tice’’; 

4 (B) by amending paragraph (18) to read 

5 as follows: 

6 ‘‘(18) ‘Fund balance’ means the current net as7 sets of the Fund available for payment of benefits, 

8 as determined by the Office in accordance with ap9 propriate accounting standards, but does not include 

10 any amount attributable to— 

11 ‘‘(A) the Federal Employees’ Retirement 

12 System; or 

13 ‘‘(B) contributions made under the Federal 

14 Employees’ Retirement Contribution Temporary 

15 Adjustment Act of 1983 by or on behalf of any 

16 individual who became subject to the Federal 

17 Employees’ Retirement System;’’ 

18 (C) by amending paragraph (19) to read 

19 as follows: 

20 ‘‘(19) ‘accrued liability’ means the estimated ex21 cess of the present value of all benefits payable from 

22 the Fund to employees and Members, and former 

23 employees and Members, subject to this subchapter, 

24 and their survivors, over the present value of deduc25 tions to be withheld from the future basic pay of em-
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1 ployees and Members currently subject to this sub2 chapter and of future agency contributions to be 

3 made in their behalf;’’ 

4 (D) in paragraph (27) by striking ‘‘and’’ 

5 at the end; 

6 (E) in paragraph (28) by striking the pe7 riod at the end and inserting a semicolon; and 

8 (F) by adding at the end the following 

9 paragraphs: 

10 ‘‘(29) ‘dynamic assumptions’ means economic 

11 assumptions that are used in determining actuarial 

12 costs and liabilities of a retirement system and in 

13 anticipating the effects of long-term future— 

14 ‘‘(A) investment yields; 

15 ‘‘(B) increases in rates of basic pay; and 

16 ‘‘(C) rates of price inflation; and 

17 ‘‘(30) ‘unfunded liability’ means the estimated 

18 excess of— 

19 ‘‘(A) the actuarial present value of all fu20 ture benefits payable from the Fund under this 

21 subchapter based on the service of current or 

22 former employees or Members, over 

23 ‘‘(B) the sum of— 

24 ‘‘(i) the actuarial present value of de25 ductions to be withheld from the future 
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1 basic pay of employees and Members cur2 rently subject to this chapter pursuant to 

3 section 8334; 

4 ‘‘(ii) the actuarial present value of the 

5 future contributions to be made pursuant 

6 to section 8334 with respect to employees 

7 and Members currently subject to this sub8 chapter; 

9 ‘‘(iii) the Fund balance, as defined in 

10 paragraph (18), as of the date the un11 funded liability is determined; and 

12 ‘‘(iv) any other appropriate amount, 

13 as determined by the Office of Personnel 

14 Management in accordance with generally 

15 accepted actuarial practices and prin16 ciples.’’; 

17 (2) in section 8334— 

18 (A) in subsection (a)(1)— 

19 (i) by striking the last two sentences; 

20 (ii) by redesignating that subsection, 

21 as so amended, as (a)(1)(A); and 

22 (iii) by adding at the end the fol23 lowing new subparagraphs: 

24 ‘‘(B) Except as provided in subparagraph (E), each 

25 employing agency having any employees or Members sub-
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1 ject to subparagraph (A) shall contribute from amounts 

2 available for salaries and expenses an amount equal to the 

3 sum of— 

4 ‘‘(i) the product of— 

5 ‘‘(I) the normal cost percentage, as deter6 mined for employees (other than employees cov7 ered by clause (ii)), multiplied by 

8 ‘‘(II) the aggregate amount of basic pay 

9 payable by the agency, for the period involved, 

10 to employees (under subclause (I)) who are 

11 within such agency; and 

12 ‘‘(ii) the product of— 

13 ‘‘(I) the normal cost percentage, as deter14 mined for Members, Congressional employees, 

15 law enforcement officers, firefighters, air traffic 

16 controllers, bankruptcy judges, Court of Fed17 eral Claims judges, United States magistrates, 

18 judges of the United States Court of Appeals 

19 for the Armed Forces, members of the Capitol 

20 Police, nuclear materials couriers, and members 

21 of the Supreme Court Police, multiplied by 

22 ‘‘(II) the aggregate amount of basic pay 

23 payable by the agency for the period involved, 

24 to employees and Members (under subclause 

25 (I)) who are within such agency. 
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1 ‘‘(C) In determining the normal cost percentage to 

2 be applied under subparagraph (B), amounts provided for 

3 under subparagraph (A) shall be taken into account. 

4 ‘‘(D) Contributions under this paragraph shall be 

5 paid— 

6 ‘‘(i) in the case of law enforcement officers, 

7 firefighters, air traffic controllers, bankruptcy 

8 judges, Court of Federal Claims judges, United 

9 States magistrates, judges of the United States 

10 Court of Appeals for the Armed Forces, members of 

11 the Supreme Court Police, nuclear materials couriers 

12 and other employees, from the appropriations or 

13 fund used to pay such law enforcement officers, fire14 fighters, air traffic controllers, bankruptcy judges, 

15 Court of Federal Claims judges, United States mag16 istrates, judges of the United States Court of Ap17 peals for the Armed Forces, members of the Su18 preme Court Police, nuclear materials couriers and 

19 other employees, respectively; 

20 ‘‘(ii) in the case of elected officials, from an ap21 propriation or fund available for payment of other 

22 salaries of the same office or establishment; and 

23 ‘‘(iii) in the case of employees of the legislative 

24 branch paid by the Clerk of the House of Represent25 atives, from the contingent fund of the House. 
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1 ‘‘(E) In the case of the United States Postal Service, 

2 the Metropolitan Washington Airports Authority, and the 

3 government of the District of Columbia, an amount equal 

4 to that withheld under subparagraph (A) shall be contrib5 uted from the appropriation or fund used to pay the em6 ployee.’’; and 

7 (B) in subsection (k)— 

8 (i) in paragraph (1)— 

9 (I) in subparagraph (A) by strik10 ing ‘‘the first sentence of subsection 

11 (a)(1) of this section’’ and inserting 

12 ‘‘subsection (a)(1)(A)’’; and 

13 (II) by amending subparagraph 

14 (B) to read as follows: 

15 ‘‘(B) the amount of the contribution under sub16 section (a)(1)(B) shall be the amount which would 

17 have been contributed under such subsection if this 

18 subsection had not been enacted.’’; and 

19 (ii) in paragraph (2)(C)(iii) by strik20 ing ‘‘the first sentence of subsection 

21 (a)(1)’’ and inserting ‘‘subsection 

22 (a)(1)(A)’’; and 

23 (3) in section 8348— 

24 (A) by repealing subsection (f); 
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1 (B) by amending subsection (g) to read as 

2 follows: 

3 ‘‘(g)(1)(A) Not later than June 30, 2006, the Office 

4 of the Actuary shall determine the unfunded liability of 

5 the Fund, as of September 30, 2005, attributable to bene6 fits payable under this chapter and make recommenda7 tions regarding its liquidation. After considering such rec8 ommendations, the Office shall establish an amortization 

9 schedule, including a series of annual installments com10 mencing October 1, 2006, which provides for the liquida11 tion of such liability by October 1, 2044. 

12 ‘‘(B) The Office shall redetermine the unfunded li13 ability of the Fund as of the close of the fiscal year, for 

14 each fiscal year beginning after September 30, 2005, 

15 through the fiscal year ending September 30, 2039, and 

16 shall establish a new amortization schedule, including a 

17 series of annual installments commencing on October 1 

18 of the second subsequent fiscal year, which provides for 

19 the liquidation of such liability by October 1, 2044. 

20 ‘‘(C) The Office shall redetermine the unfunded li21 ability of the Fund as of the close of the fiscal year for 

22 each fiscal year beginning after September 30, 2039, and 

23 shall establish a new amortization schedule, including a 

24 series of annual installments commencing on October 1 
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1 of the second subsequent fiscal year, which provides for 

2 the liquidation of such liability over five years. 

3 ‘‘(D) Amortization schedules established under this 

4 paragraph shall be set in accordance with generally accept5 ed actuarial practices and principles, with interest com6 puted at the rate used in the most recent valuation of the 

7 Civil Service Retirement System. 

8 ‘‘(2) At the beginning of each fiscal year, beginning 

9 on October 1, 2006, the Office shall notify the Secretary 

10 of the Treasury of the amount of the first installment 

11 under the most recent amortization schedule established 

12 under paragraph (1). The Secretary shall credit that 

13 amount to the Fund, as a Government contribution, out 

14 of any money in the Treasury of the United States not 

15 otherwise appropriated. 

16 ‘‘(3) For the purpose of carrying out paragraph (1) 

17 with respect to any fiscal year, the Office may— 

18 ‘‘(A) require the Board of Actuaries of the Civil 

19 Service Retirement System to make actuarial deter20 minations and valuations, make recommendations, 

21 and maintain records in accordance with section 

22 8347(f); and 

23 ‘‘(B) use the latest actuarial determinations 

24 and valuations made by such Board of Actuaries.’’; 
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1 (C) in subsections (h), (i), and (m) by 

2 striking ‘‘unfunded’’ and inserting ‘‘accrued’’ 

3 each place it appears; and 

4 (D) by adding at the end the following new 

5 subsection: 

6 ‘‘(n) Under regulations prescribed by the Office, the 

7 head of an agency may request reconsideration of any 

8 amount determined to be payable with respect to such 

9 agency under section 8334(a)(1)(B)–(D). Any such re10 quest shall be referred to the Board of Actuaries of the 

11 Civil Service Retirement System. The Board of Actuaries 

12 shall review the computations of the Office and may make 

13 any adjustment with respect to any such amount which 

14 the Board determines appropriate. A determination by the 

15 Board of Actuaries under this subsection shall be final.’’. 

16 (b) GOVERNMENT CONTRIBUTIONS.—Section 8423 

17 of title 5, United States Code, is amended— 

18 (1) in subsection (a)(2) by striking ‘‘section 

19 8422’’ and inserting ‘‘section 8422(a)’’; and 

20 (2) in subsection (b)(2) by striking ‘‘equal an21 nual installments’’ and inserting ‘‘annual install22 ments set in accordance with generally accepted ac23 tuarial practices and principles’’. 
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1 SEC. 402. CENTRAL INTELLIGENCE AGENCY RETIREMENT 

2 AND DISABILITY SYSTEM. 

3 (a) Section 101 of the Central Intelligence Agency 

4 Retirement Act (50 U.S.C. 2001) is amended— 

5 (1) in paragraph (5), to read as follows: 

6 ‘‘(5) UNFUNDED LIABILITY.—The term ‘un7 funded liability’ means the estimated excess of— 

8 ‘‘(A) the actuarial present value of all fu9 ture benefits payable from the Fund under title 

10 II of this Act based on the service of current 

11 or former participants, over 

12 ‘‘(B) the sum of— 

13 ‘‘(i) the actuarial present value of de14 ductions to be withheld from the future 

15 basic pay of participants currently subject 

16 to title II of this Act pursuant to section 

17 211; 

18 ‘‘(ii) the actuarial present value of the 

19 future contributions to be made pursuant 

20 to section 211 with respect to participants 

21 currently subject to title II of this Act; 

22 ‘‘(iii) the Fund balance, as defined in 

23 paragraph (4), as of the date the unfunded 

24 liability is determined; and 

25 ‘‘(iv) any other appropriate amount, 

26 as determined by the Director in accord-
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1 ance with generally accepted actuarial 

2 practices and principles.’’; 

3 (2) in paragraph (6)— 

4 (A) by striking ‘‘ ‘normal cost’ ’’ and in5 serting ‘‘ ‘normal cost percentage’ ’’; and 

6 (B) by inserting ‘‘and standards (using dy7 namic assumptions)’’ after ‘‘practice’’; and 

8 (3) by adding at the end the following para9 graph: 

10 ‘‘(10) DYNAMIC ASSUMPTIONS.—The term ‘dy11 namic assumptions’ means economic assumptions 

12 that are used in determining actuarial costs and li13 abilities of a retirement system and in anticipating 

14 the effects of long-term future— 

15 ‘‘(A) investment yields; 

16 ‘‘(B) increases in rates of basic pay; and 

17 ‘‘(C) rates of price inflation.’’; 

18 (b) Section 202 of such Act (50 U.S.C. 2012) is 

19 amended by adding at the end the following: ‘‘The Fund 

20 is appropriated for the payment of benefits as provided 

21 by this title.’’. 

22 (c) Section 211(a)(2) of such Act (50 U.S.C. 

23 2021(a)(2)) is amended to read as follows: 

24 ‘‘(2) AGENCY CONTRIBUTIONS.—The Agency 

25 shall contribute to the Fund the amount computed 
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1 in a manner similar to that used under section 

2 8334(a) of title 5, United States Code, pursuant to 

3 determinations of the normal cost percentage of the 

4 Central Intelligence Agency Retirement and Dis5 ability System by the Director. Contributions under 

6 this paragraph shall be paid from amounts available 

7 for salaries and expenses.’’; and 

8 (d) Section 261 of such Act (50 U.S.C. 2091) is 

9 amended— 

10 (1) by striking subsections (c), (d), and (e); and 

11 (2) by inserting after subsection (b) the fol12 lowing new subsections: 

13 ‘‘(c)(1) Not later than June 30, 2006, the Director 

14 shall cause to be made actuarial valuations of the Fund 

15 that determine the unfunded liability of the Fund, as of 

16 September 30, 2005, attributable to benefits payable 

17 under this title and make recommendations regarding its 

18 liquidation. After considering such recommendations, the 

19 Director shall establish an amortization schedule, includ20 ing a series of annual installments commencing October 

21 1, 2006, which provides for the liquidation of such liability 

22 by October 1, 2044. 

23 ‘‘(2) The Director shall redetermine the unfunded li24 ability of the Fund as of the close of the fiscal year, for 

25 each fiscal year beginning after September 30, 2005, 
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1 through the fiscal year ending September 30, 2039, and 

2 shall establish a new amortization schedule, including a 

3 series of annual installments commencing on October 1 

4 of the second subsequent fiscal year, which provides for 

5 the liquidation of such liability by October 1, 2044. 

6 ‘‘(3) The Director shall redetermine the unfunded li7 ability of the Fund as of the close of the fiscal year for 

8 each fiscal year beginning after September 30, 2039, and 

9 shall establish a new amortization schedule, including a 

10 series of annual installments commencing on October 1 

11 of the second subsequent fiscal year, which provides for 

12 the liquidation of such liability over five years. 

13 ‘‘(4) Amortization schedules established under this 

14 subsection shall be set in accordance with generally accept15 ed actuarial practices and principles, with interest com16 puted at the rate used in the most recent valuation of the 

17 Civil Service Retirement and Disability System. 

18 ‘‘(d) At the beginning of each fiscal year, beginning 

19 on October 1, 2006, the Director shall notify the Secretary 

20 of the Treasury of the amount of the first installment 

21 under the most recent amortization schedule established 

22 under subsection (c). The Secretary shall credit that 

23 amount to the Fund, as a Government contribution, out 

24 of any money in the Treasury of the United States not 

25 otherwise appropriated. For the purposes of Section 504 
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1 of the National Security Act of 1947, this amount shall 

2 be considered authorized.’’. 

3 (e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) 

4 is amended by adding at the end the following new section: 

5 ‘‘SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EM6 PLOYEES DESIGNATED UNDER SECTION 302. 

7 ‘‘(a) In addition to other government contributions 

8 required by law, the Agency shall contribute to the Civil 

9 Service Retirement and Disability fund (hereinafter in this 

10 section referred to as the ‘Fund’) amounts calculated in 

11 accordance with section 8423 of title 5, United States 

12 Code, based on the projected number of employees to be 

13 designated pursuant to section 302 of this Act. In addi14 tion, the Agency, in a manner similar to that established 

15 for employee contributions to the Fund by section 8422 

16 of title 5, United States Code, will contribute an amount 

17 equal to the difference between that which would be con18 tributed by the number of employees projected to be des19 ignated under section 302 and the amounts that are actu20 ally being deducted and contributed from the basic pay 

21 of an equal number of employees pursuant to section 

22 8422. The amounts of the Agency’s contributions under 

23 this subsection shall be determined by the Director of the 

24 Office of Personnel Management, in consultation with the 

25 Director, and shall be paid by the Agency from funds 
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1 available for salaries and expenses. Agency employees des2 ignated pursuant to section 302 of this Act shall, com3 mencing with such designation, have deducted from their 

4 basic pay the full amount required by section 8422 of title 

5 5, United States Code, and such deductions shall be con6 tributed to the Fund. 

7 ‘‘(b)(1) The Director of the Office of Personnel Man8 agement, in consultation with the Director, shall deter9 mine the total amount of unpaid contributions (govern10 ment and employee contributions) and interest attrib11 utable to the number of individuals employed with the 

12 Agency on September 30, 2006, who are projected to be 

13 designated under section 302 of this Act, but are not yet 

14 designated under that section as of that date. The amount 

15 shall be referred to as the section 302 unfunded liability. 

16 ‘‘(2) Not later than June 30, 2007, the Director of 

17 the Office of Personnel Management, in consultation with 

18 the Director, shall establish an amortization schedule, set19 ting forth a series of annual installments commencing 

20 September 30, 2007, which provides for the liquidation of 

21 the section 302 unfunded liability by September 30, 2014. 

22 ‘‘(3) At the end of each fiscal year, beginning on Sep23 tember 30, 2007, the Director shall notify the Secretary 

24 of the Treasury of the amount of the annual installment 

25 under the amortization schedule established under para-
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1 graph (2) of this subsection. Before closing the accounts 

2 for that fiscal year, the Secretary shall credit that amount 

3 to the Fund, out of any money in the Treasury of the 

4 United States not otherwise appropriated. 

5 ‘‘(c) Amounts paid by the Agency pursuant to this 

6 section are deemed to be specifically authorized by the 

7 Congress for the purposes of section 504 of the National 

8 Security Act of 1947.’’. 

9 (2) The table of contents of such Act is amended by 

10 inserting after the item relating to section 307 the fol11 lowing new item: 

‘‘Sec. 308. Full funding of retiree costs for employees designated under section 

302.’’. 

12 SEC. 403. FOREIGN SERVICE RETIREMENT AND DISABILITY 

13 SYSTEM. 

14 (a) Chapter 8 of Title I of the Foreign Service Act 

15 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

16 94 Stat. 2071, as amended, is further amended in section 

17 804 (22 U.S.C. 4044)— 

18 (1) by amending paragraph (5) to read as fol19 lows: 

20 ‘‘(5) ‘normal cost percentage’ means the entry21 age normal cost computed in accordance with gen22 erally accepted actuarial practice and standards 

23 (using dynamic assumptions) and expressed as a 

24 level percentage of aggregate basic pay;’’; 
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1 (2) by amending paragraph (14) to read as fol2 lows: 

3 ‘‘(14) ‘unfunded liability’ means the estimated 

4 excess of— 

5 ‘‘(A) the actuarial present value of all fu6 ture benefits payable from the Fund under this 

7 part based on the service of current or former 

8 participants, over 

9 ‘‘(B) the sum of— 

10 ‘‘(i) the actuarial present value of de11 ductions to be withheld from the future 

12 basic pay of participants currently subject 

13 to this part pursuant to section 805; 

14 ‘‘(ii) the actuarial present value of the 

15 future contributions to be made pursuant 

16 to section 805 with respect to participants 

17 currently subject to this part; 

18 ‘‘(iii) the Fund balance, as defined in 

19 paragraph (7), as of the date the unfunded 

20 liability is determined, excluding any 

21 amount attributable to the Foreign Service 

22 Pension System, or contributions made 

23 under the Federal Employees’ Retirement 

24 Contribution Temporary Adjustment Act 

25 of 1983 by or on behalf of any individual 
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1 who became subject to the Foreign Service 

2 Pension System; and 

3 ‘‘(iv) any other appropriate amount, 

4 as determined by the Secretary of the 

5 Treasury in accordance with generally ac6 cepted actuarial practices and principles.’’; 

7 and 

8 (3)(A) by striking the period at the end of 

9 paragraph (15) and inserting ‘‘; and’’; and 

10 (B) by adding at the end the following new 

11 paragraph: 

12 ‘‘(16) ‘dynamic assumptions’ means economic 

13 assumptions that are used in determining actuarial 

14 costs and liabilities of a retirement system and in 

15 anticipating the effects of long-term future— 

16 ‘‘(A) investment yields; 

17 ‘‘(B) increases in rates of basic pay; and 

18 ‘‘(C) rates of price inflation.’’; 

19 (b) in section 852 (22 U.S.C. 4071a)— 

20 (1) in paragraph (4)— 

21 (A) by striking ‘‘normal cost’’ and insert22 ing ‘‘normal cost percentage’’; and 

23 (B) by striking ‘‘by the Secretary of 

24 State’’; 

25 (2) in paragraph (7)— 
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1 (A) by striking ‘‘supplemental’’ and insert2 ing ‘‘unfunded’’; 

3 (B) in subparagraph (B)(i) by striking 

4 ‘‘(I)’’ and ‘‘and (II) contributions for past civil5 ian and military service’’; and 

6 (C) in subparagraph (B)(ii) by inserting 

7 before the semicolon ‘‘with respect to partici8 pants currently subject to this part’’; and 

9 (3)(A) at the end of paragraph (8) by striking 

10 ‘‘and’’; 

11 (B) at the end of paragraph (9) by striking the 

12 period and inserting ‘‘; and’’; and 

13 (C) by adding at the end the following new 

14 paragraph: 

15 ‘‘(10) ‘dynamic assumptions’ means economic 

16 assumptions that are used in determining actuarial 

17 costs and liabilities of a retirement system and in 

18 anticipating the effects of long-term future— 

19 ‘‘(A) investment yields; 

20 ‘‘(B) increases in rates of basic pay; and 

21 ‘‘(C) rates of price inflation.’’; 

22 (c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))— 

23 (1) by striking the second sentence; 

24 (2) (by redesignating that subsection, as so 

25 amended, as (a)(1)(A); 
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1 (3) by redesignating the last sentence of that 

2 subsection, as so amended as (a)(1)(C); 

3 (4) by inserting after subparagraph (A) the fol4 lowing new subparagraph: 

5 ‘‘(B) Each employing agency having par6 ticipants shall contribute to the Fund the 

7 amount computed in a manner similar to that 

8 used under section 8334(a) of title 5, United 

9 States Code, pursuant to determinations of the 

10 normal cost percentage of the Foreign Service 

11 Retirement and Disability System. Contribu12 tions under this subparagraph shall be paid 

13 from the appropriations or fund used for pay14 ment of the salary of the participant.’’; 

15 (5) in subsection (a)(2)(A) by striking ‘‘An 

16 equal amount shall be contributed by the Depart17 ment’’ and inserting in its place ‘‘Each employing 

18 agency having participants shall contribute to the 

19 Fund the amount computed in a manner similar to 

20 that used under section 8334(a) of title 5, United 

21 States Code, pursuant to determinations of the nor22 mal cost percentage of the Foreign Service Retire23 ment and Disability System’’; and 

24 (6) in subsection (a)(2)(B) by striking ‘‘An 

25 equal amount shall be contributed by the Depart-
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1 ment’’ and inserting in its place ‘‘Each employing 

2 agency having participants shall contribute to the 

3 Fund from amounts available for salaries and ex4 penses the amount computed in a manner similar to 

5 that used under section 8334(a) of title 5, United 

6 States Code, pursuant to determinations of the nor7 mal cost percentage of the Foreign Service Retire8 ment and Disability System’’; 

9 (d) by repealing sections 821 and 822 (22 U.S.C. 

10 4061 and 4062) and by adding the following new section: 

11 ‘‘SEC. 821. UNFUNDED LIABILITY.—(a)(1) Not later 

12 than June 30, 2006, the Secretary of State shall cause 

13 to be made actuarial valuations of the Fund that deter14 mine the unfunded liability of the Fund, as of September 

15 30, 2005, attributable to benefits payable under this sub16 chapter and make recommendations regarding its liquida17 tion. After considering such recommendations, the Sec18 retary of State shall establish an amortization schedule, 

19 including a series of annual installments commencing Oc20 tober 1, 2005, which provides for the liquidation of such 

21 liability by October 1, 2044. 

22 ‘‘(2) The Secretary of State shall redetermine the un23 funded liability of the Fund as of the close of the fiscal 

24 year, for each fiscal year beginning after September 30, 

25 2005, through the fiscal year ending September 30, 2039, 
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1 and shall establish a new amortization schedule, including 

2 a series of annual installments commencing on October 1 

3 of the second subsequent fiscal year, which provides for 

4 the liquidation of such liability by October 1, 2044. 

5 ‘‘(3) The Secretary of State shall redetermine the un6 funded liability of the Fund as of the close of the fiscal 

7 year for each fiscal year beginning after September 30, 

8 2039, and shall establish a new amortization schedule, in9 cluding a series of annual installments commencing on Oc10 tober 1 of the second subsequent fiscal year, which pro11 vides for the liquidation of such liability over five years. 

12 ‘‘(4) Amortization schedules established under this 

13 subsection shall be set in accordance with generally accept14 ed actuarial practices and principles, with interest com15 puted at the rate used in the most recent valuation of the 

16 Foreign Service Retirement and Disability System. 

17 ‘‘(b) At the beginning of each fiscal year, beginning 

18 on October 1, 2006, the Secretary of State shall notify 

19 the Secretary of the Treasury of the amount of the first 

20 installment under the most recent amortization schedule 

21 established under paragraph (1). The Secretary of the 

22 Treasury shall credit that amount to the Fund, as a Gov23 ernment contribution, out of any money in the Treasury 

24 of the United States not otherwise appropriated.’’; 
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1 (e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by 

2 striking ‘‘equal annual installments’’ and inserting ‘‘an3 nual installments set in accordance with generally accept4 ed actuarial practices and principles’’; 

5 (f) in section 859 (22 U.S.C. 4071h) by adding ‘‘per6 centage’’ after ‘‘normal cost’’; 

7 (g) in section 802 (22 U.S.C. 4042) by adding at the 

8 end the following: ‘‘The Fund is appropriated for the pay9 ment of benefits as provided by this subchapter.’’; and 

10 (h) in section 818 (22 U.S.C. 4058) by striking ‘‘Sys11 tem’’ and inserting ‘‘Systems under this subchapter’’. 

12 SEC. 404. PUBLIC HEALTH SERVICE COMMISSIONED CORPS 

13 RETIREMENT SYSTEM. 

14 (a) IN GENERAL.—Title II of the Public Health Serv15 ice Act (42 U.S.C. 202 et seq.) is amended by adding at 

16 the end the following new part: 

17 ‘‘PART C—PUBLIC HEALTH SERVICE 

18 COMMISSIONED CORPS RETIREMENT SYSTEM 

19 ‘‘ESTABLISHMENT AND PURPOSE OF FUND

20 ‘‘SEC. 251. There is established on the books of the 

21 Treasury a fund to be known as the Public Health Service 

22 Commissioned Corps Retirement Fund (hereinafter in this 

23 part referred to as the ‘Fund’), which shall be adminis24 tered by the Secretary. The Fund shall be used for the 

25 accumulation of funds in order to finance on an actuarially 
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1 sound basis liabilities of the Department of Health and 

2 Human Services for benefits payable on account of retire3 ment, disability, or death to commissioned officers of the 

4 Public Health Service and to their survivors pursuant to 

5 part A of this title. 

6 ‘‘ASSETS OF THE FUND

7 ‘‘SEC. 252. There shall be deposited into the Fund 

8 the following, which shall constitute the assets of the 

9 Fund: 

10 ‘‘(1) Amounts paid into the Fund under section 

11 255. 

12 ‘‘(2) Any return on investment of the assets of 

13 the Fund. 

14 ‘‘(3) Amounts transferred into the Fund pursu15 ant to section 404(c) of the Family Budget Protec16 tion Act of 2005. 

17 ‘‘PAYMENT FROM THE FUND

18 ‘‘SEC. 253. There shall be paid from the Fund bene19 fits payable on account of retirement, disability, or death 

20 to commissioned officers of the Public Health Service and 

21 to their survivors pursuant to part A of this title. 

22 ‘‘DETERMINATION OF CONTRIBUTIONS TO THE FUND

23 ‘‘SEC. 254. (a)(1) Not later than June 30, 2006, the 

24 Secretary shall determine the unfunded liability of the 

25 Fund attributable to service performed as of September 

26 30, 2005, which is ‘active service’ for the purpose of sec-
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1 tion 212. The Secretary shall establish an amortization 

2 schedule, including a series of annual installments com3 mencing October 1, 2006, which provides for the liquida4 tion of such liability by October 1, 2044. 

5 ‘‘(2) The Secretary shall redetermine the unfunded 

6 liability of the Fund as of the close of the fiscal year, for 

7 each fiscal year beginning after September 30, 2005, 

8 through the fiscal year ending September 30, 2039, and 

9 shall establish a new amortization schedule, including a 

10 series of annual installments commencing on October 1 

11 of the second subsequent fiscal year, which provides for 

12 the liquidation of such liability by October 1, 2044. 

13 ‘‘(3) The Secretary shall redetermine the unfunded 

14 liability of the Fund as of the close of the fiscal year for 

15 each fiscal year beginning after September 30, 2039, and 

16 shall establish a new amortization schedule, including a 

17 series of annual installments commencing on October 1 

18 of the second subsequent fiscal year, which provides for 

19 the liquidation of such liability over 5 years. 

20 ‘‘(b) The Secretary shall determine each fiscal year, 

21 in sufficient time for inclusion in the budget request for 

22 the following fiscal year, the total amount of Department 

23 of Health and Human Services contributions to be made 

24 to the Fund during the fiscal year under section 255(a). 

25 That amount shall be the sum of— 
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1 ‘‘(1) the product of— 

2 ‘‘(A) the current estimate of the value of 

3 the single level percentage of basic pay to be de4 termined under subsection (c)(1) at the time of 

5 the most recent actuarial valuation under sub6 section (c); and 

7 ‘‘(B) the total amount of basic pay ex8 pected to be paid during that fiscal year to 

9 commissioned officers of the Public Health 

10 Service on active duty (other than active duty 

11 for training); and 

12 ‘‘(2) the product of— 

13 ‘‘(A) the current estimate of the value of 

14 the single level percentage of basic pay and of 

15 compensation (paid pursuant to section 206 of 

16 title 37, United States Code) to be determined 

17 under subsection (c)(2) at the time of the most 

18 recent actuarial valuation under subsection (c); 

19 and 

20 ‘‘(B) the total amount of basic pay and of 

21 compensation (paid pursuant to section 206 of 

22 title 37, United States Code) expected to be 

23 paid during the fiscal year to commissioned of24 ficers of the Reserve Corps of the Public Health 

25 Service (other than officers on full-time duty 
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1 other than for training) who are not otherwise 

2 described in subparagraph (A). 

3 ‘‘(c) Not less often than every four years thereafter 

4 (or by the fiscal year end prior to the effective date of 

5 any statutory change affecting benefits payable on account 

6 of retirement, disability, or death to commissioned officers 

7 or their survivors), the Secretary shall carry out an actu8 arial valuation of benefits payable on account of retire9 ment, disability, or death to commissioned officers of the 

10 Public Health Service and to their survivors pursuant to 

11 part A of this title. Each such actuarial valuation shall 

12 be signed by an enrolled Actuary and shall include— 

13 ‘‘(1) a determination (using the aggregate 

14 entry-age normal cost method) of a single level per15 centage of basic pay for commissioned officers of the 

16 Public Health Service on active duty (other than ac17 tive duty for training); and 

18 ‘‘(2) a determination (using the aggregate 

19 entry-age normal cost method) of a single level per20 centage of basic pay and of compensation (paid pur21 suant to section 206 of title 37, United States Code) 

22 of commissioned officers of the Reserve Corps of the 

23 Public Health Service (other than officers on full 

24 time duty other than for training) who are not oth25 erwise described in paragraph (1). 
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1 ‘‘(d) All determinations under this section shall be in 

2 accordance with generally accepted actuarial principles 

3 and practices and, where appropriate, shall follow the gen4 eral pattern of methods and assumptions approved by the 

5 Department of Defense Retirement Board of Actuaries. 

6 ‘‘(e) The Secretary shall provide for the keeping of 

7 such records as are necessary for determining the actu8 arial status of the Fund. 

9 ‘‘PAYMENTS INTO THE FUND

10 ‘‘SEC. 255. (a) From amounts available to the De11 partment of Health and Human Services for salaries and 

12 expenses, the Secretary shall pay into the Fund at the end 

13 of each month the amount that is the sum of— 

14 ‘‘(1) the product of— 

15 ‘‘(A) the level percentage of basic pay de16 termined using all the methods and assump17 tions approved for the most recent (as of the 

18 first day of the current fiscal year) actuarial 

19 valuation under sections 254(c)(1) (except that 

20 any statutory change affecting benefits payable 

21 on account of retirement, disability, or death to 

22 commissioned officers or their survivors that is 

23 effective after the date of that valuation and on 

24 or before the first day of the current fiscal year 

25 shall be used in such determination); and 
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1 ‘‘(B) the total amount of basic pay accrued 

2 for that month by commissioned officers of the 

3 Public Health Service on active duty (other 

4 than active duty for training); and 

5 ‘‘(2) the product of— 

6 ‘‘(A) the level percentage of basic pay and 

7 of compensation (paid pursuant to section 206 

8 of title 37, United States Code) determined 

9 using all the methods and assumptions ap10 proved for the most recent (as of the first day 

11 of the current fiscal year) actuarial valuation 

12 under section 254(c)(2) (except that any statu13 tory change affecting benefits payable on ac14 count of retirement, disability, or death to com15 missioned officers or their survivors that is ef16 fective after the date of that valuation and on 

17 or before the first day of the current fiscal year 

18 shall be used in such determinations); and 

19 ‘‘(B) the total amount of basic pay and of 

20 compensation (paid pursuant to section 206 of 

21 title 37, United States Code) accrued for that 

22 month by commissioned officers of the Reserve 

23 Corps of the Public Health Service (other than 

24 officers on full-time duty other than for train25 ing). 
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1 ‘‘(b) At the beginning of each fiscal year, beginning 

2 on October 1, 2006, the Secretary shall certify to the Sec3 retary of the Treasury the amount of the first installment 

4 under the most recent amortization schedule established 

5 under section 254(a). The Secretary of the Treasury shall 

6 pay into the Fund from the General Fund of the Treasury 

7 the amount so certified. Such payment shall be the con8 tribution to the Fund for that fiscal year. 

9 ‘‘INVESTMENTS OF ASSETS OF FUND

10 ‘‘SEC. 256. The Secretary may request the Secretary 

11 of the Treasury to invest such portion of the Fund as is 

12 not, in the judgment of the Secretary, required to meet 

13 the current needs of the Fund. Such investments shall be 

14 made by the Secretary of the Treasury in public debt secu15 rities with maturities suitable to the needs of the Fund, 

16 as determined by the Secretary, and bearing interest at 

17 rates determined by the Secretary of the Treasury, taking 

18 into consideration current market yields on outstanding 

19 marketable obligations of the United States of comparable 

20 maturities. The income on such investments shall be cred21 ited to and form a part of the Fund. 

22 ‘‘IMPLEMENTATION YEAR EXCEPTIONS

23 ‘‘SEC. 257. (a) To avoid funding shortfalls in the first 

24 year should formal actuarial determinations not be avail25 able in time for budget preparation, the amounts used in 

26 the first year in sections 255(a)(1)(A) and 255(a)(2)(A) 
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1 shall be set equal to those estimates in sections 

2 254(b)(1)(A) and 254(b)(2)(A) if final determinations are 

3 not available. The original unfunded liability as defined 

4 in section 254(a) shall include an adjustment to correct 

5 for this difference between the formal actuarial determina6 tions and the estimates in sections 254(b)(1)(A) and 

7 254(b)(2)(A).’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) CONDITION OF DETAIL.—Section 214 of the 

10 Public Health Service Act (42 U.S.C. 215) is 

11 amended by adding at the end the following new 

12 subsection: 

13 ‘‘(e) The Secretary shall condition any detail under 

14 subsection (a), (b), or (c) upon the agreement of the exec15 utive department, State, subdivision, Committee of the 

16 Congress, or institution concerned to pay to the Depart17 ment of Health and Human Services, in advance or by 

18 way of reimbursement, for the full cost of the detail in19 cluding that portion of the contributions under section 

20 255(a) that is attributable to the detailed personnel.’’. 

21 (2) SEQUESTRATION RULE.—Section 256(f) of 

22 the Balanced Budget and Emergency Deficit Control 

23 Act of 1985 (2 U.S.C. 906(f)) is amended— 

24 (A) by inserting after the item relating to 

25 ‘‘payment to the foreign service retirement and 
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1 disability fund’’ the following item: ‘‘Payment 

2 to the Public Health Service Commissioned 

3 Corps Retirement Fund (75–0380–0–1–551);’’; 

4 and 

5 (B) by inserting after the item relating to 

6 the ‘‘Pensions for former Presidents’’ the fol7 lowing item: ‘‘Public Health Service Commis8 sioned Corps Retirement Fund (75–8274–0–7– 

9 602);’’. 

10 (c) TRANSFER OF APPROPRIATIONS.—There shall be 

11 transferred on October 1, 2007, into the fund established 

12 under section 251 of the Public Health Service Act, as 

13 added by subsection (a), any obligated or unobligated bal14 ances of appropriations made to the Department of Health 

15 and Human Services that are currently available for bene16 fits payable on account of retirement, disability, or death 

17 to commissioned officers of the Public Health Service and 

18 to their survivors pursuant to part A of title II of the Pub19 lic Health Service Act, and amounts so transferred shall 

20 be part of the assets of the Fund. 

21 SEC. 405. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN22 ISTRATION COMMISSIONED OFFICER CORPS 

23 RETIREMENT SYSTEM. 

24 (a) IN GENERAL.—The National Oceanic and Atmos25 pheric Administration Commissioned Officer Corps Act of 
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1 2002 (title II of Public Law 107–372) is amended by in2 serting after section 246 (33 U.S.C. 3046) the following 

3 new section: 

4 ‘‘SEC. 246A. (a) ESTABLISHMENT AND PURPOSE OF

5 NOAA COMMISSIONED OFFICER CORPS RETIREMENT

6 FUND.—(1) There is established on the books of the 

7 Treasury a fund to be known as the National Oceanic and 

8 Atmospheric Administration Commissioned Officer Corps 

9 Retirement Fund (hereinafter in this section referred to 

10 as the ‘Fund’), which shall be administered by the Sec11 retary. The Fund shall be used for the accumulation of 

12 funds in order to finance on an actuarially sound basis 

13 liabilities of the Department of Commerce under military 

14 retirement and survivor benefit programs for the commis15 sioned officers corps. 

16 ‘‘(2) The term ‘military retirement and survivor ben17 efit program’ means— 

18 ‘‘(A) the provisions of this title and title 10, 

19 United States Code, creating entitlement to, or de20 termining, the amount of retired pay; 

21 ‘‘(B) the programs under the jurisdiction of the 

22 Department of Defense providing annuities for sur23 vivors and members and former members of the 

24 Armed Forces, including chapter 73 of title 10, sec25 tion 4 of Public Law 92–425, and section 5 of Pub-
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1 lic Law 96–202, as made applicable to the commis2 sioned officer corps by section 261. 

3 ‘‘(b) ASSETS OF THE FUND.—There shall be depos4 ited into the Fund the following, which shall constitute 

5 the assets of the Fund: 

6 ‘‘(1) Amounts paid into the Fund under sub7 section (e). 

8 ‘‘(2) Any return on investment of the assets of 

9 the Fund. 

10 ‘‘(3) Amounts transferred into the Fund pursu11 ant to section 405(c) of the Family Budget Protec12 tion Act of 2005. 

13 ‘‘(c) PAYMENTS FROM THE FUND.—There shall be 

14 paid from the Fund benefits payable on account of mili15 tary retirement and survivor benefit programs to commis16 sioned officers of the commissioned officer corps and their 

17 survivors. 

18 ‘‘(d) DETERMINATION OF CONTRIBUTIONS TO THE

19 FUND.—(1)(A) Not later than June 30, 2005, the Sec20 retary shall determine the unfunded liability of the Fund 

21 attributable to service performed as of September 30, 

22 2005, which is ‘active service’ for the purpose of this title. 

23 The Secretary shall establish an amortization schedule, in24 cluding a series of annual installments commencing Octo-
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1 ber 1, 2006, which provides for the liquidation of such 

2 liability by October 1, 2044. 

3 ‘‘(B) The Secretary shall redetermine the unfunded 

4 liability of the Fund as of the close of the fiscal year, for 

5 each fiscal year beginning after September 30, 2005, 

6 through the fiscal year ending September 30, 2039, and 

7 shall establish a new amortization schedule, including a 

8 series of annual installments commencing on September 

9 30 of the subsequent fiscal year, which provides for the 

10 liquidation of such liability by October 1, 2044. 

11 ‘‘(C) The Secretary shall redetermine the unfunded 

12 liability of the Fund as of the close of the fiscal year for 

13 each fiscal year beginning after September 30, 2039, and 

14 shall establish a new authorization schedule, including se15 ries of annual installments commencing on October 1 of 

16 the second subsequent fiscal year, which provides for the 

17 liquidation of such liability over 5 years. 

18 ‘‘(2) The Secretary shall determine each fiscal year, 

19 in sufficient time for inclusion in the budget request for 

20 the following fiscal year, the total amount of Department 

21 of Commerce contributions to be made to the Fund during 

22 that fiscal year under (e). The amount shall be the product 

23 of— 

24 ‘‘(A) the current estimate of the value of the 

25 single level percentage of basic pay to be determined 
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1 under subsection (e) at the time of the most recent 

2 actuarial valuation under paragraph (3); and 

3 ‘‘(B) the total amount of basic pay expected to 

4 be paid during that fiscal year to commissioned offi5 cers of NOAA on active duty. 

6 ‘‘(3) Not less often then every four years (or by the 

7 fiscal year end before the effective date of any statutory 

8 change affecting benefits payable on account of retire9 ment, disability, or death to commissioned officers or their 

10 survivors), the Secretary shall carry out an actuarial valu11 ation of benefits payable on account of military retirement 

12 and survivor benefit programs to commissioned officers of 

13 the Administration and to their survivors. Each such actu14 arial valuation shall be signed by an enrolled Actuary and 

15 shall include a determination (using the aggregate entry16 age normal cost method) of a single level percentage of 

17 basic pay for commissioned officers on active duty. 

18 ‘‘(4) All determinations under this section shall be in 

19 accordance with generally accepted actuarial principles 

20 and practices, and, where appropriate, shall follow the 

21 general pattern of methods and assumptions approved by 

22 the Department of Defense Retirement Board of Actu23 aries. 
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1 ‘‘(5) The Secretary shall provide for the keeping of 

2 such records as are necessary for determining the actu3 arial status of the Fund. 

4 ‘‘(e) PAYMENTS INTO THE FUND.—(1) From 

5 amounts appropriated to the National Oceanic Atmos6 pheric Administration for salaries and expenses, the Sec7 retary shall pay into the Fund at the end of each month 

8 the amount that is the product of— 

9 ‘‘(A) the level percentage of basic pay deter10 mined using all the methods and assumptions ap11 proved for the most recent (as of the first day of the 

12 current fiscal year) actuarial valuation under sub13 section (d) (except that any statutory change affect14 ing benefits payable on account of military retire15 ment and survivor benefit programs to commissioned 

16 officers of the Administration and to their survivors 

17 that is effective date after the date of that valuation 

18 and on or before the first day of the current fiscal 

19 year shall be used in such determination); and 

20 ‘‘(B) the total amount of basic pay accrued for 

21 that month by commissioned officers on active duty. 

22 ‘‘(2)(A) At the beginning of each fiscal year, the Sec23 retary shall determine the sum of— 
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1 ‘‘(i) the amount of the payment for that year 

2 under the amortization of the original unfunded li3 ability of the Fund; 

4 ‘‘(ii) the amount (including any negative 

5 amount) for that year under the most recent amorti6 zation schedule determined by the Secretary for the 

7 amortization of any cumulative actuarial gain or loss 

8 to the Fund, resulting from changes in benefits; and 

9 ‘‘(iii) the amount (including any negative 

10 amount) for that year under the most recent amorti11 zation schedule determined by the Secretary for the 

12 amortization or any cumulative actuarial gain or loss 

13 to the Fund resulting from changes in actuarial as14 sumptions and from experience different from the 

15 assumed since the last valuation. 

16 The Secretary shall promptly certify the amount of the 

17 sum to the Secretary of the Treasury. 

18 ‘‘(B) Upon receiving the certification pursuant to 

19 paragraph (1), the Secretary of the Treasury shall 

20 promptly pay into the Fund from the General Fund of 

21 the Treasury the amount so certified. Such payment shall 

22 be the contribution to the Fund for that fiscal year. 

23 ‘‘(f) INVESTMENT OF ASSETS OF THE FUND.—The 

24 Secretary may request the Secretary of the Treasury to 

25 invest such portion of the Fund as is not, in the judgment 
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1 of the Secretary, required to meet the current needs of 

2 the Fund. Such investments shall be made by the Sec3 retary of the Treasury in public debt securities with matu4 rities suitable to the needs of the Fund, as determined 

5 by the Secretary, and bearing interest at rates determined 

6 by the Secretary of the Treasury, taking into consideration 

7 current market yields on outstanding marketable obliga8 tions of the United States of comparable maturities. The 

9 income of such investments shall be credited to and form 

10 a part of the Fund. 

11 ‘‘(g) IMPLEMENTATION YEAR EXCEPTIONS.—(1) To 

12 avoid funding shortfalls in the first year should formal ac13 tuarial determinations not be available in time for budget 

14 preparation, the amounts used in the first year in sub15 section (e)(1)(A) shall be set equal to the estimate in sub16 section (d)(2)(A) if final determinations are not available. 

17 The original unfunded liability as determined in sub18 section (d)(1) shall include an adjustment to correct for 

19 this difference between the formal actuarial determina20 tions and the estimates in subsection (d)(2)(A).’’. 

21 (b) SEQUESTRATION RULE.—Section 256(f) of the 

22 Balanced Budget and Emergency Deficit Control Act of 

23 1985 (2 U.S.C. 906(f)) is amended by striking ‘‘National 

24 Oceanic and Atmospheric Administration retirement (13– 

25 1450–0–1–306);’’ and inserting ‘‘National Oceanic and 
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1 Atmospheric Administration Commissioned Officer Corps 

2 Retirement Fund;’’. 

3 (c) TRANSFER OF APPROPRIATIONS.—There shall be 

4 transferred on October 1, 2007, into the fund established 

5 under section 246A(a) of the National Oceanic and At6 mospheric Administration Commissioned Officer Corps 

7 Act of 2002 (title II of Public Law 107–372, as added 

8 by subsection (a)), any obligated and unobligated balance 

9 of appropriations made to the Department of Commerce 

10 that are available as of the date of the enactment of this 

11 Act for benefits payable on account of military retirement 

12 and survivor benefit programs to commissioned officers of 

13 the NOAA Commissioned Officer Corps and to their sur14 vivors, and amounts so transferred shall be part of the 

15 assets of the Fund, effective October 1, 2007. 

16 (d) EFFECTIVE DATE.—Subsection (c) (relating to 

17 payments from the Fund) and (e) (relating to payments 

18 into the Fund) of section 246A of the National Oceanic 

19 and Atmospheric Administration Commissioned Officer 

20 Corps Act of 2002 (title II of Public Law 107–372, as 

21 added by subsection (a)), shall take effect on October 1, 

22 2007. 

23 SEC. 406. COAST GUARD MILITARY RETIREMENT SYSTEM. 

24 (a) ACCRUAL FUNDING FOR COAST GUARD RETIRE25 MENT.— 
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1 (1) IN GENERAL.—Chapter 11 of title 14, 

2 United States Code, is amended by adding at the 

3 end the following new subchapter: 

4 ‘‘SUBCHAPTER V—COAST GUARD MILITARY 

5 RETIREMENT FUND 

6 ‘‘§ 441. Establishment and purpose of Fund; defini7 tions 

8 ‘‘(a) ESTABLISHMENT OF FUND; PURPOSE.—There 

9 is established on the books of the Treasury a fund to be 

10 known as the Coast Guard Military Retirement Fund 

11 (hereinafter in this subchapter referred to as the ‘Fund’), 

12 which shall be administered by the Secretary. The Fund 

13 shall be used for the accumulations of funds in order to 

14 finance on an actuarially sound basis liabilities of the 

15 Coast Guard under military retirement and survivor ben16 efit programs. 

17 ‘‘(b) MILITARY RETIREMENT AND SURVIVOR BEN18 EFIT PROGRAMS DEFINED.—In this subchapter, the term 

19 ‘military retirement and survivor benefit programs’ 

20 means— 

21 ‘‘(1) the provisions of this title and title 10 cre22 ating entitlement to, or determining the amount of, 

23 retired pay; 

24 ‘‘(2) the programs providing annuities for sur25 vivors of members and former members of the 
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1 armed forces, including chapter 73 of title 10, sec2 tion 4 of Public Law 92–425, and section 5 of Pub3 lic Law 96–402; and 

4 ‘‘(3) the authority provided in section 1048(h) 

5 of title 10. 

6 ‘‘(c) SECRETARY DEFINED.—In this subchapter, the 

7 term ‘Secretary’ means the Secretary of Homeland Secu8 rity when the Coast Guard is not operating as a service 

9 in the Navy and the Secretary of Defense when the Coast 

10 Guard is operating as a service in the Navy. 

11 ‘‘§ 442. Assets of the Fund 

12 ‘‘There shall be deposited into the Fund the fol13 lowing, which shall constitute the assets of the Fund: 

14 ‘‘(1) Amounts paid into the Fund under section 

15 445 of this title. 

16 ‘‘(2) Any return on investment of the assets of 

17 the Fund. 

18 ‘‘(3) Amounts transferred into the Fund pursu19 ant to section 406(d) of the Family Budget Protec20 tion Act of 2005. 

21 ‘‘§ 443. Payments from the Fund 

22 ‘‘(a) IN GENERAL.—There shall be paid from the 

23 Fund the following: 

24 ‘‘(1) Retired pay payable to persons on the re25 tired list of the Coast Guard. 
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1 ‘‘(2) Retired pay payable under chapter 1223 of 

2 title 10 to former members of the Coast Guard and 

3 the former United States Lighthouse Service. 

4 ‘‘(3) Benefits payable under programs that pro5 vide annuities for survivors of members and former 

6 members of the armed forces, including chapter 73 

7 of title 10, section 4 of Public Law 92–425, and sec8 tion 5 of Public Law 96–402. 

9 ‘‘(4) Amounts payable under section 1048(h) of 

10 title 10. 

11 ‘‘(b) AVAILABILITY OF ASSETS OF THE FUND.—The 

12 assets of the Fund are hereby made available for payments 

13 under subsection (a). 

14 ‘‘§ 444. Determination of contributions to the Fund 

15 ‘‘(a) INITIAL UNFUNDED LIABILITY.—(1) Not later 

16 than June 30, 2006, the Secretary shall determine the un17 funded liability of the Fund attributable to service per18 formed as of September 30, 2005, which is ‘active service’ 

19 for the purposes of section 212. The Secretary shall estab20 lish an amortization schedule, including a series of annual 

21 installments commencing October 1, 2006, which provides 

22 for the liquidation of such liability by October 1, 2044. 

23 ‘‘(2) The Secretary shall redetermine the unfunded 

24 liability of the Fund as of the close of the fiscal year, for 

25 each beginning after September 30, 2005, through the fis-
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1 cal year ending September 30, 2039, and shall establish 

2 a new amortization schedule, including a series of annual 

3 installments commencing on October 1 of the second sub4 sequent fiscal year, which provides for the liquidation of 

5 such liability by October 1, 2044. 

6 ‘‘(3) The Secretary shall redetermine the unfunded 

7 liability of the Fund as of the close of the fiscal year for 

8 each fiscal year beginning after September 30, 2039, and 

9 shall establish a new amortization schedule, including a 

10 series of annual installments commencing on October 1 

11 of the second subsequent fiscal year, which provides for 

12 the liquidation of such liability over five years. 

13 ‘‘(b) ANNUAL CONTRIBUTIONS FOR CURRENT SERV14 ICES.—(1) The Secretary shall determine each fiscal year, 

15 in sufficient time for inclusion in the budget request for 

16 the following fiscal year, the total amount of Department 

17 of Homeland Security, or Department of Defense, con18 tributions to be made to the Fund during that fiscal year 

19 under section 445(a) of this title. That amount shall be 

20 the sum of the following: 

21 ‘‘(A) The product of— 

22 ‘‘(i) the current estimate of the value of 

23 the single level percentage of basic pay to be de24 termined under subsection (c)(1)(A) at the time 
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1 of the most recent actuarial valuation under 

2 subsection (c); and 

3 ‘‘(ii) the total amount of basic pay ex4 pected to be paid during that fiscal year to 

5 members of the Coast Guard on active duty 

6 (other than active duty for training). 

7 ‘‘(B) The product of— 

8 ‘‘(i) the current estimate of the value of 

9 the single level percentage of basic pay and of 

10 compensation (paid pursuant to section 206 of 

11 title 37) to be determined under subsection 

12 (c)(1)(B) at the time of the most recent actu13 arial valuation under subsection (c); and 

14 ‘‘(ii) the total amount of basic pay and 

15 compensation (paid pursuant to section 206 of 

16 title 37) expected to be paid during that fiscal 

17 year to members of the Coast Guard Ready Re18 serve (other than members on full-time Reserve 

19 duty other than for training) who are not other20 wise described in subparagraph (A)(ii). 

21 ‘‘(2) The amount determined under paragraph (1) for 

22 any fiscal year is the amount needed to be appropriated 

23 to the Department of Homeland Security for that fiscal 

24 year for payments to be made to the Fund during that 

25 year under section 445(a) of this title. The President shall 
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1 include not less than the full amount so determined in the 

2 budget transmitted to Congress for that fiscal year under 

3 section 1105 of title 31. The President may comment and 

4 make recommendations concerning any such amount. 

5 ‘‘(c) PERIODIC ACTUARIAL VALUATIONS.—(1) Not 

6 less often than every four years (or before the effective 

7 date of any statutory change affecting benefits payable on 

8 account of retirement, disability, or death to members of 

9 the Coast Guard or their survivors), the Secretary shall 

10 carry out an actuarial valuation of the Coast Guard mili11 tary retirement and survivor benefit programs. Each actu12 arial valuation of such programs shall be signed by an en13 rolled actuary and shall include— 

14 ‘‘(A) a determination (using the aggregate 

15 entry-age normal cost method) of a single level per16 centage of basic pay for members of the Coast 

17 Guard on active duty (other than active duty for 

18 training); and 

19 ‘‘(B) a determination (using the aggregate 

20 entry-age normal cost method) of single level per21 centage of basic pay and of compensation (paid pur22 suant to section 206 of title 37) for members of the 

23 Ready Reserve of the Coast Guard (other than mem24 bers on full-time Reserve duty other than for train-
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1 ing) who are not otherwise described in subpara2 graph (A). 

3 ‘‘(2) Such single level percentages shall be used for 

4 the purposes of subsection (b) and section 445(a) of this 

5 title. 

6 ‘‘(d) USE OF GENERALLY ACCEPTED ACTUARIAL

7 PRINCIPLES AND PRACTICES.—All determinations under 

8 this section shall be in accordance with generally accepted 

9 actuarial principles and practices and, where appropriate, 

10 shall follow the general pattern of methods and assump11 tions approved by the Department of Defense Retirement 

12 Board of Actuaries. 

13 ‘‘(e) RECORDS.—The Secretary shall provide for the 

14 keeping of such records as are necessary for determining 

15 the actuarial status of the Fund. 

16 ‘‘§ 445. Payments into the Fund 

17 ‘‘(a) MONTHLY ACCRUAL CHARGE FOR CURRENT

18 SERVICES.—From amounts appropriated to the Coast 

19 Guard for salaries and expenses, the Secretary shall pay 

20 into the Fund at the end of each month as the Department 

21 of Homeland Security, or Department of Defense, con22 tribution to the Fund for that month the amount that is 

23 the sum of the following: 

24 ‘‘(1) The product of— 
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1 ‘‘(A) the level percentage of basic pay de2 termined using all the methods and assump3 tions approved for the most recent (as of the 

4 first day of the current fiscal year) actuarial 

5 valuation under section 444(c)(1)(A) of this 

6 title (except that any statutory change in the 

7 military retirement and survivor benefit systems 

8 that is effective after the date of that valuation 

9 and on or before the first day of the current fis10 cal year shall be used in such determination); 

11 and 

12 ‘‘(B) the total amount of basic pay accrued 

13 for that month by members of the Coast Guard 

14 on active duty (other than active duty for train15 ing). 

16 ‘‘(2) The product of— 

17 ‘‘(A) the level percentage of basic pay and 

18 compensation (accrued pursuant to section 206 

19 of title 37) determined using all the methods 

20 and assumptions approved for the most recent 

21 (as of the first day of the current fiscal year) 

22 actuarial valuation under section 444(c)(1)(B) 

23 of this title (except that any statutory change 

24 in the military retirement and survivor benefit 

25 systems that is effective after the date of that 
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1 valuation and on or before the first day of the 

2 current fiscal year shall be used in such deter3 mination); and 

4 ‘‘(B) the total amount of basic pay and of 

5 compensation (paid pursuant to section 206 of 

6 title 37) accrued for that month by members of 

7 the Ready Reserve (other than members of full8 time Reserve duty other than for training) who 

9 are not otherwise described in paragraph 

10 (1)(B). 

11 ‘‘(b) ANNUAL PAYMENT FOR UNFUNDED LIABIL12 ITIES.—(1) At the beginning of each fiscal year, beginning 

13 on October 1, 2006, the Secretary shall certify to the Sec14 retary of the Treasury the amount of the first installment 

15 under the most recent amortization schedule established 

16 under section 254(a). The Secretary of the Treasury shall 

17 promptly pay into the Fund from the General Fund of 

18 the Treasury the amount so certified. Such payment shall 

19 be the contribution to the Fund for that fiscal year. 

20 ‘‘§ 446. Investment of assets of the Fund 

21 ‘‘The Secretary may request the Secretary of the 

22 Treasury to invest such portion of the Fund as is not, 

23 in the judgment of the Secretary, required to meet the 

24 current needs of the Fund. Such investments shall be 

25 made by the Secretary of the Treasury in public debt secu-
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1 rities with maturities suitable to the needs of the Fund, 

2 as determined by the Secretary, and bearing interest at 

3 rates determined by the Secretary of the Treasury, taking 

4 into consideration current market yields on outstanding 

5 marketable obligations of the United States of comparable 

6 maturities. The income on such investments shall be cred7 ited to and form a part of the Fund.’’. 

8 (2) TECHNICAL AMENDMENTS.—Such chapter 

9 is further amended— 

10 (A) by amending the center heading after 

11 the table of sections to read as follows: 

12 ‘‘SUBCHAPTER I—OFFICERS’’; 

13 (B) by amending the center heading after 

14 section 336 to read as follows: 

15 ‘‘SUBCHAPTER II—ENLISTED MEMBERS’’; 

16 (C) by amending the center heading after 

17 section 373 to read as follows: 

18 ‘‘SUBCHAPTER III—GENERAL PROVISIONS’’; 

19 and 

20 (D) by amending the center heading after 

21 section 425 to read as follows: 

22 ‘‘SUBCHAPTER IV—SPECIAL PROVISIONS’’. 

23 (3) CLERICAL AMENDMENTS.—The table of sec24 tions at the beginning of such chapter is amended— 
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1 (A) by striking ‘‘OFFICERS’’ at the begin2 ning of the table and inserting ‘‘SUBCHAPTER

3 I—OFFICERS’’; 

4 (B) by striking ‘‘ENLISTED MEMBERS’’ 

5 after the item relating to section 336 and in6 serting ‘‘SUBCHAPTER II—ENLISTED MEM7 BERS’’; 

8 (C) by striking ‘‘GENERAL PROVISIONS’’ 

9 after the item relating to section 373 and in10 serting ‘‘SUBCHAPTER III—GENERAL PROVI11 SIONS’’; 

12 (D) by striking ‘‘SPECIAL PROVISIONS’’ 

13 after the item relating to section 425 and in14 serting ‘‘SUBCHAPTER IV—SPECIAL PROVI15 SIONS’’; and 

16 (E) by adding at the end the following: 

‘‘SUBCHAPTER V—COAST GUARD MILITARY RETIREMENT FUND 

‘‘441. Establishment and purpose of Fund; definitions. 

‘‘442. Assets of the Fund. 

‘‘443. Payments from the Fund. 

‘‘444. Determination of contributions to the Fund. 

‘‘445. Payments into the Fund. 

‘‘446. Investment of assets of the Fund.’’. 

17 (b) IMPLEMENTATION YEAR EXCEPTIONS.—To avoid 

18 funding shortfalls in the first year of implementation of 

19 subchapter V of chapter 11 of title 14, United States 

20 Code, as added by subsection (a), if formal actuarial deter21 minations are not available in time for budget preparation, 

22 the amounts used in the first year under sections 
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1 445(a)(1)(A) and 445(a)(2)(A) of such title shall be set 

2 equal to those estimates in sections 444(b)(1)(A)(i) and 

3 444(b)(1)(B)(i), respectively, of such title if final deter4 minations are not available. The original unfunded liabil5 ity, as defined in section 444(a) of such title, shall include 

6 an adjustment to correct for this difference between the 

7 formal actuarial determinations and the estimates in sec8 tions 444(b)(1)(A)(i) and 444(b)(1)(B)(i) of such title. 

9 (c) CONFORMING AMENDMENT.—Section 256(f) of 

10 the Balanced Budget and Emergency Deficit Control Act 

11 of 1985 (2 U.S.C. 906(f)) is amended by striking ‘‘Retired 

12 Pay, Coast Guard (69–0241–0–1–403)’’ and inserting 

13 ‘‘Coast Guard Military Retirement Fund (69–0241–01– 

14 403)’’. 

15 (d) TRANSFER OF EXISTING BALANCES.— 

16 (1) TRANSFER.—There shall be transferred into 

17 the Fund on October 1, 2006, any obligated and un18 obligated balances of appropriations made to the De19 partment of Homeland Security that are currently 

20 available for retired pay, and amounts so transferred 

21 shall be part of the assets of the Fund. 

22 (2) FUND DEFINED.—For purposes of para23 graph (1), the term ‘‘Fund’’ means the Coast Guard 

24 Military Retirement Fund established under section 
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1 441 of title 14, United States Code, as added by 

2 subsection (a). 

3 (e) EFFECTIVE DATE.—Sections 443 (relating to 

4 payments from the Fund) and 445 (relating to payments 

5 into the Fund) of title 14, United States Code, as added 

6 by subsection (a), shall take effect on October 1, 2006. 

7 Subtitle B—Accrual Funding of 

8 Post-Retirement Health Benefits 

9 Costs for Federal Employees 

10 SEC. 411. FEDERAL EMPLOYEES HEALTH BENEFITS FUND. 

11 (a) Section 8906 of title 5, United States Code, is 

12 amended— 

13 (1) by redesignating subsection (c) as sub14 section (c)(1) and by adding at the end the following 

15 new paragraphs: 

16 ‘‘(2) In addition to Government contributions re17 quired by subsection (b) and paragraph (1), each employ18 ing agency shall contribute amounts as determined by the 

19 Office to be necessary to prefund the accruing actuarial 

20 cost of post-retirement health benefits for each of the 

21 agency’s current employees who are eligible for Govern22 ment contributions under this section. Amounts under this 

23 paragraph shall be paid by the employing agency separate 

24 from other contributions under this section, from the ap-
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1 propriations or fund used for payment of the salary of the 

2 employee, on a schedule to be determined by the Office. 

3 ‘‘(3) Paragraph (2) shall not apply to the United 

4 States Postal Service or the government of the District 

5 of Columbia.’’; and 

6 (2) by amending subsection (g)(1) to read as 

7 follows: 

8 ‘‘(g)(1) Except as provided in paragraphs (2) and 

9 (3), all Government contributions authorized by this sec10 tion for health benefits for an annuitant shall be paid from 

11 the Employees Health Benefits Fund to the extent that 

12 funds are available in accordance with section 8909(h)(6) 

13 and, if necessary, from annual appropriations which are 

14 authorized to be made for that purpose and which may 

15 be made available until expended.’’. 

16 (b) Section 8909 of title 5, United States Code, is 

17 amended by adding at the end the following new sub18 section: 

19 ‘‘(h)(1) Not later than June 30, 2007, the Office 

20 shall determine the existing liability of the Fund for post21 retirement health benefits, excluding the liability of the 

22 United States Postal Service for service under section 

23 8906(g)(2), under this chapter as of September 30, 2007. 

24 The Office shall establish an amortization schedule, in25 cluding a series of annual installments commencing Sep-
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1 tember 30, 2007, which provides for the liquidation of 

2 such liability by September 30, 2043. 

3 ‘‘(2) At the close of each fiscal year, for fiscal years 

4 beginning after September 30, 2006, the Office shall de5 termine the supplemental liability of the Fund for post6 retirement health benefits, excluding the liability attrib7 utable to the United States Postal Service for service sub8 ject to section 8906(g)(2), and shall establish an amortiza9 tion schedule, including a series of annual installments 

10 commencing on September 30 of the subsequent fiscal 

11 year, which provides for liquidation of such supplemental 

12 liability over 30 years. 

13 ‘‘(3) Amortization schedules established under this 

14 paragraph shall be set in accordance with generally accept15 ed actuarial practices and principles. 

16 ‘‘(4) At the end of each fiscal year on and after Sep17 tember 30, 2007, the Office shall notify the Secretary of 

18 the Treasury of the amounts of the next installments 

19 under the most recent amortization schedules established 

20 under paragraphs (1) and (2). Before closing the accounts 

21 for the fiscal year, the Secretary shall credit the sum of 

22 these amounts (including in that sum any negative 

23 amount for the amortization of the supplemental liability) 

24 to the Fund, as a Government contribution, out of any 
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1 money in the Treasury of the United States not otherwise 

2 appropriated. 

3 ‘‘(5) For the purpose of carrying out paragraphs (1) 

4 and (2), the Office shall perform or arrange for actuarial 

5 determinations and valuations and shall prescribe reten6 tion of such records as it considers necessary for making 

7 periodic actuarial valuations of the Fund. 

8 ‘‘(6) Notwithstanding subsection (b), the amounts de9 posited into the Fund pursuant to this subsection and sec10 tion 8906(c)(2) to prefund post-retirement health benefits 

11 costs shall be segregated within the Fund so that such 

12 amounts, as well as earnings and proceeds under sub13 section (c) attributable to them, may be used exclusively 

14 for the purpose of paying Government contributions for 

15 post-retirement health benefits costs. When such amounts 

16 are used in combination with amounts withheld from an17 nuitants to pay for health benefits, a portion of the con18 tributions shall then be set aside in the Fund as described 

19 in subsection (b). 

20 ‘‘(7) Under this subsection, ‘supplemental liability’ 

21 means— 

22 ‘‘(A) the actuarial present value for future post23 retirement health benefits that are the liability of 

24 the Fund, less 

25 ‘‘(B) the sum of— 
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1 ‘‘(i) the actuarial present value of all fu2 ture contributions by agencies and annuitants 

3 to the Fund toward those benefits pursuant to 

4 section 8906; 

5 ‘‘(ii) the present value of all scheduled am6 ortization payments to the Fund pursuant to 

7 paragraphs (1) and (2); 

8 ‘‘(iii) the Fund balance as of the date the 

9 supplemental liability is determined, to the ex10 tent that such balance is attributable to post-re11 tirement benefits; and 

12 ‘‘(iv) any other appropriate amount, as de13 termined by the Office in accordance with gen14 erally accepted actuarial practices and prin15 ciples.’’. 

16 SEC. 412. FUNDING UNIFORMED SERVICES HEALTH BENE17 FITS FOR ALL RETIREES. 

18 Title 10, United States Code, is amended— 

19 (1) in the title of chapter 56, by striking ‘‘DE20 PARTMENT OF DEFENSE MEDICARE21 ELIGIBLE’’ and inserting ‘‘UNIFORMED 

22 SERVICES’’; 

23 (2) in section 1111— 

24 (A) in subsection (a)— 
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1 (i) by striking ‘‘Department of De2 fense Medicare-Eligible’’ and inserting 

3 ‘‘Uniformed Services’’; 

4 (ii) by striking ‘‘Department of De5 fense under’’; and 

6 (iii) by striking ‘‘for medicare-eligible 

7 beneficiaries’’; 

8 (B) in subsection (c)— 

9 (i) by striking ‘‘The Secretary of De10 fense may’’ and inserting ‘‘The Secretary 

11 of Defense shall’’; 

12 (ii) by striking ‘‘with any other’’ and 

13 inserting ‘‘with each’’; 

14 (iii) by striking ‘‘Any such agree15 ment’’ and inserting ‘‘Such agreements’’; 

16 and 

17 (iv) by striking ‘‘administering Sec18 retary may’’ and inserting ‘‘administrative 

19 Secretary shall’’; 

20 (3) in section 1113— 

21 (A) in subsection (a)— 

22 (i) by striking ‘‘and are medicare eli23 gible’’; 

24 (ii) by striking ‘‘who are medicare eli25 gible’’; and 
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1 (iii) by adding at the end the fol2 lowing new sentence: ‘‘For the fiscal year 

3 starting October 1, 2005, only, the pay4 ments will be solely for the costs of mem5 bers or former members of a uniformed 

6 service who are entitled to retired or re7 tainer pay and are medicare-eligible, and 

8 eligible dependents or survivors who are 

9 medicare-eligible.’’; 

10 (B) in subsection (c)(1), by striking ‘‘who 

11 are medicare-eligible’’; 

12 (C) in subsection (d), by striking ‘‘who are 

13 medicare-eligible’’; and 

14 (D) in subsection (f), by striking ‘‘If’’ and 

15 inserting ‘‘When’’; 

16 (4) in section 1114, in subsection (a)(1), by 

17 striking ‘‘Department of Defense Medicare-Eligible’’ 

18 and inserting ‘‘Uniformed Services’’; 

19 (5) in section 1115— 

20 (A) in subsection (b)(2), by striking ‘‘The 

21 amount determined under paragraph (1) for 

22 any fiscal year is the amount needed to be ap23 propriated to the Department of Defense (or to 

24 the other executive department having jurisdic25 tion over the participating uniformed service)’’ 
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1 and inserting ‘‘The amount determined under 

2 paragraph (1), or the amount determined under 

3 section 1111(c) for a participating uniformed 

4 service, for any fiscal year, is the amount need5 ed to be appropriated to the Department of De6 fense (or to any other executive department 

7 having jurisdiction over a participating uni8 formed service)’’; 

9 (B) in subsection (c)(2), by striking ‘‘for 

10 medicare eligible beneficiaries’’; and 

11 (C) by adding at the end the following new 

12 subsection: 

13 ‘‘(f) For the fiscal year starting October 1, 2005, 

14 only, the amounts in this section shall be based solely on 

15 the costs of medicare-eligible benefits of beneficiaries and 

16 the costs for their eligible dependents or survivors who are 

17 medicare-eligible, and shall be recalculated thereafter to 

18 reflect the cost of beneficiaries defined in section 1111.’’; 

19 and 

20 (6) in section 1116— 

21 (A) in subsection (a)(1)(A), by striking 

22 ‘‘for medicare-eligible beneficiaries’’; 

23 (B) in subsection (a)(2)(A), by striking 

24 ‘‘for medicare-eligible beneficiaries’’; and 
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1 (C) in subsection (c), by striking ‘‘sub2 section (a) shall be paid from funds available 

3 for the health care programs’’ and inserting 

4 ‘‘subsection (a) and section 1111(c) shall be 

5 paid from funds available for the pay of mem6 bers of the participating uniformed services 

7 under the jurisdiction of the respective admin8 istering secretaries’’. 

9 SEC. 413. EFFECTIVE DATE. 

10 Except as otherwise provided, this title shall take ef11 fect upon enactment with respect to fiscal years beginning 

12 after 2006. 

13 Subtitle C—Public Debt Limit 

14 Reform 

15 SEC. 421. FINDINGS. 

16 The Congress finds the following: 

17 (1) Since 1997, Congress has paid down and 

18 retired approximately $450,000,000,000 of the Gov19 ernment’s debt which was previously held by the 

20 public. 

21 (2) This reduction in the Government’s debt to 

22 the public should permit a lowering of the statutory 

23 debt ceiling. However, the statutory definition min24 gles both the public debt and intragovernment liabil-
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1 ities, the latter of which do not represent resource 

2 withdrawals for the economy. 

3 (3) Intragovernment accounts such as the social 

4 security trust funds, the Civil Service Retirement 

5 and Disability Fund, the Department of Defense 

6 Military Retirement Fund, and the Unemployment 

7 Trust Fund constitute accrued liabilities of the Gov8 ernment which will be paid from future receipts, 

9 taxes, or borrowing. If the Government issues debt 

10 to the public to fund such liabilities in the future, 

11 that debt will properly be subject to the debt ceiling. 

12 (4) Properly defining the debt of the Govern13 ment would permit lowering the debt ceiling to take 

14 account of, and lock in, the fiscal progress that has 

15 been made. 

16 SEC. 422. PURPOSE. 

17 It is the purpose of this subtitle to properly define 

18 the public debt to exclude intragovernment obligations. 

19 SEC. 423. LIMIT ON PUBLIC DEBT. 

20 Section 3101 of title 31, United States Code, is 

21 amended to read as follows: 

22 ‘‘§ 3101. Public debt limit 

23 ‘‘(a) In this section, the current redemption value of 

24 an obligation issued on a discount basis and redeemable 
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1 before maturity at the option of its holder is deemed to 

2 be the face amount of the obligation. 

3 ‘‘(b) The face amount of obligations issued under this 

4 chapter and the face amount of obligations whose prin5 cipal and interest are guaranteed by the United States 

6 Government (except guaranteed obligations held by the 

7 Secretary of the Treasury and intragovernmental hold8 ings) may not be more than $4,393,000,000,000 out9 standing at one time, subject to changes periodically made 

10 in that amount as provided by law. 

11 ‘‘(c) For purposes of this section, the face amount, 

12 for any month, of any obligation issued on a discount basis 

13 that is not redeemable before maturity at the option of 

14 the holder of the obligation is an amount equal to the sum 

15 of— 

16 ‘‘(1) the original issue price of the obligation, 

17 plus 

18 ‘‘(2) the portion of the discount on the obliga19 tion attributable to periods before the beginning of 

20 such month (as determined under the principles of 

21 section 1272(a) of the Internal Revenue Code of 

22 1986 without regard to any exceptions contained in 

23 paragraph (2) of such section). 

24 ‘‘(d) For purposes of this section, the term 

25 ‘intragovernment holding’ is any obligation issued by the 
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1 Secretary of the Treasury to any Federal trust fund or 

2 Government account, whether in respect of public money, 

3 money otherwise required to be deposited in the Treasury, 

4 or amounts appropriated.’’. 

5 SEC. 424. REPEAL OF THE GEPHARDT RULE. 

6 The Rules of the House of Representatives are 

7 amended by repealing rule XXVII (relating to the statu8 tory limit on public debt) and by redesignating rule 

9 XXVIII as rule XXVII. 

10 Subtitle D—Risk-assumed 

11 Budgeting 

12 SEC. 431. FEDERAL INSURANCE PROGRAMS. 

13 (a) IN GENERAL.—The Congressional Budget Act of 

14 1974 is amended by adding after title V the following new 

15 title: 

16 ‘‘TITLE VI—BUDGETARY TREAT17 MENT OF FEDERAL INSUR18 ANCE PROGRAMS 

19 ‘‘SEC. 602. BUDGETARY TREATMENT. 

20 ‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 

21 year 2011, the budget of the Government pursuant to sec22 tion 1105(a) of title 31, United States Code, shall be 

23 based on the risk-assumed cost of Federal insurance pro24 grams. 
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1 ‘‘(b) BUDGET ACCOUNTING.—For any Federal insur2 ance program— 

3 ‘‘(1) the program account shall— 

4 ‘‘(A) pay the risk-assumed cost borne by 

5 the taxpayer to the financing account, and 

6 ‘‘(B) pay actual insurance program admin7 istrative costs; 

8 ‘‘(2) the financing account shall— 

9 ‘‘(A) receive premiums and other income, 

10 ‘‘(B) pay all claims for insurance and re11 ceive all recoveries, 

12 ‘‘(C) transfer to the program account on 

13 not less than an annual basis amounts nec14 essary to pay insurance program administrative 

15 costs; 

16 ‘‘(3) a negative risk-assumed cost shall be 

17 transferred from the financing account to the pro18 gram account, and shall be transferred from the pro19 gram account to the general fund; and 

20 ‘‘(4) all payments by or receipts of the financ21 ing accounts shall be treated in the budget as a 

22 means of financing. 

23 ‘‘(c) APPROPRIATIONS REQUIRED.—(1) Notwith24 standing any other provision of law, insurance commit25 ments may be made for fiscal year 2011 and thereafter 
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1 only to the extent that new budget authority to cover their 

2 risk-assumed cost is provided in advance in an appropria3 tion Act. 

4 ‘‘(2) An outstanding insurance commitment shall not 

5 be modified in a manner that increases its risk-assumed 

6 cost unless budget authority for the additional cost has 

7 been provided in advance. 

8 ‘‘(3) Paragraph (1) shall not apply to Federal insur9 ance programs that constitute entitlements. 

10 ‘‘(d) REESTIMATES.—The risk-assumed cost for a 

11 fiscal year shall be reestimated in each subsequent year. 

12 Such reestimate can equal zero. In the case of a positive 

13 reestimate, the amount of the reestimate shall be paid 

14 from the program account to the financing account. In 

15 the case of a negative reestimate, the amount of the reesti16 mate shall be paid from the financing account to the pro17 gram account, and shall be transferred from the program 

18 account to the general fund. Reestimates shall be dis19 played as a distinct and separately identified subaccount 

20 in the program account. 

21 ‘‘(e) ADMINISTRATIVE EXPENSES.—All funding for 

22 an agency’s administration of a Federal insurance pro23 gram shall be displayed as a distinct and separately identi24 fied subaccount in the program account. 
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1 ‘‘SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL 

2 BUDGETING FOR FEDERAL INSURANCE PRO3 GRAMS. 

4 ‘‘(a) AGENCY REQUIREMENTS.—Agencies with re5 sponsibility for Federal insurance programs shall develop 

6 models to estimate their risk-assumed cost by year 

7 through the budget horizon and shall submit those models, 

8 all relevant data, a justification for critical assumptions, 

9 and the annual projected risk-assumed costs to OMB with 

10 their budget requests each year starting with the request 

11 for fiscal year 2008. Agencies will likewise provide OMB 

12 with annual estimates of modifications, if any, and reesti13 mates of program costs. 

14 ‘‘(b) DISCLOSURE.—When the President submits a 

15 budget of the Government pursuant to section 1105(a) of 

16 title 31, United States Code, for fiscal year 2008, OMB 

17 shall publish a notice in the Federal Register advising in18 terested persons of the availability of information describ19 ing the models, data (including sources), and critical as20 sumptions (including explicit or implicit discount rate as21 sumptions) that it or other executive branch entities would 

22 use to estimate the risk-assumed cost of Federal insurance 

23 programs and giving such persons an opportunity to sub24 mit comments. At the same time, the chairman of the 

25 Committee on the Budget shall publish a notice for CBO 

26 in the Federal Register advising interested persons of the 
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1 availability of information describing the models, data (in2 cluding sources), and critical assumptions (including ex3 plicit or implicit discount rate assumptions) that it would 

4 use to estimate the risk-assumed cost of Federal insurance 

5 programs and giving such interested persons an oppor6 tunity to submit comments. 

7 ‘‘(c) REVISION.—(1) After consideration of comments 

8 pursuant to subsection (b), and in consultation with the 

9 Committees on the Budget of the House of Representa10 tives and the Senate, OMB and CBO shall revise the mod11 els, data, and major assumptions they would use to esti12 mate the risk-assumed cost of Federal insurance pro13 grams. 

14 ‘‘(2) When the President submits a budget of the 

15 Government pursuant to section 1105(a) of title 31, 

16 United States Code, for fiscal year 2009, OMB shall pub17 lish a notice in the Federal Register advising interested 

18 persons of the availability of information describing the 

19 models, data (including sources), and critical assumptions 

20 (including explicit or implicit discount rate assumptions) 

21 that it or other executive branch entities used to estimate 

22 the risk-assumed cost of Federal insurance programs. 

23 ‘‘(d) DISPLAY.— 

24 ‘‘(1) IN GENERAL.—For fiscal years 2009, 

25 2010, and 2011 the budget submissions of the Presi-
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1 dent pursuant to section 1105(a) of title 31, United 

2 States Code, and CBO’s reports on the economic 

3 and budget outlook pursuant to section 202(e)(1) 

4 and the President’s budgets, shall for display pur5 poses only, estimate the risk-assumed cost of exist6 ing or proposed Federal insurance programs. 

7 ‘‘(2) OMB.—The display in the budget submis8 sions of the President for fiscal years 2009, 2010, 

9 and 2011 shall include— 

10 ‘‘(A) a presentation for each Federal insur11 ance program in budget-account level detail of 

12 estimates of risk-assumed cost; 

13 ‘‘(B) a summary table of the risk-assumed 

14 costs of Federal insurance programs; and 

15 ‘‘(C) an alternate summary table of budget 

16 functions and aggregates using risk-assumed 

17 rather than cash-based cost estimates for Fed18 eral insurance programs. 

19 ‘‘(3) CBO.—In the second session of the 109th 

20 Congress and the 110th Congress, CBO shall in21 clude in its estimates under section 308, for display 

22 purposes only, the risk-assumed cost of existing Fed23 eral insurance programs, or legislation that CBO, in 

24 consultation with the Committees on the Budget of 

25 the House of Representatives and the Senate, deter-
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1 mines would create a new Federal insurance pro2 gram. 

3 ‘‘(e) OMB, CBO, AND GAO EVALUATIONS.—(1) Not 

4 later than 6 months after the budget submission of the 

5 President pursuant to section 1105(a) of title 31, United 

6 States Code, for fiscal year 2010, OMB, CBO, and GAO 

7 shall each submit to the Committees on the Budget of the 

8 House of Representatives and the Senate a report that 

9 evaluates the advisability and appropriate implementation 

10 of this title. 

11 ‘‘(2) Each report made pursuant to paragraph (1) 

12 shall address the following: 

13 ‘‘(A) The adequacy of risk-assumed estimation 

14 models used and alternative modeling methods. 

15 ‘‘(B) The availability and reliability of data or 

16 information necessary to carry out this title. 

17 ‘‘(C) The appropriateness of the explicit or im18 plicit discount rate used in the various risk-assumed 

19 estimation models. 

20 ‘‘(D) The advisability of specifying a statutory 

21 discount rate (such as the Treasury rate) for use in 

22 risk-assumed estimation models. 

23 ‘‘(E) The ability of OMB, CBO, or GAO, as ap24 plicable, to secure any data or information directly 
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1 from any Federal agency necessary to enable it to 

2 carry out this title. 

3 ‘‘(F) The relationship between risk-assumed ac4 crual budgeting for Federal insurance programs and 

5 the specific requirements of the Balanced Budget 

6 and Emergency Deficit Control Act of 1985. 

7 ‘‘(G) Whether Federal budgeting is improved by 

8 the inclusion of risk-assumed cost estimates for Fed9 eral insurance programs. 

10 ‘‘(H) The advisability of including each of the 

11 programs currently estimated on a risk-assumed cost 

12 basis in the Federal budget on that basis. 

13 ‘‘SEC. 604. DEFINITIONS. 

14 ‘‘For purposes of this title: 

15 ‘‘(1) The term ‘Federal insurance program’ 

16 means a program that makes insurance commit17 ments and includes the list of such programs in18 cluded in the joint explanatory statement of man19 agers accompanying the conference report on the 

20 Comprehensive Budget Process Reform Act of 1999. 

21 ‘‘(2) The term ‘insurance commitment’ means 

22 an agreement in advance by a Federal agency to in23 demnify a nonfederal entity against specified losses. 

24 This term does not include loan guarantees as de25 fined in title V or benefit programs such as social 
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1 security, medicare, and similar existing social insur2 ance programs. 

3 ‘‘(3)(A) The term ‘risk-assumed cost’ means the 

4 net present value of the estimated cash flows to and 

5 from the Government resulting from an insurance 

6 commitment or modification thereof. 

7 ‘‘(B) The cash flows associated with an insur8 ance commitment include— 

9 ‘‘(i) expected claims payments inherent in 

10 the Government’s commitment; 

11 ‘‘(ii) net premiums (expected premium col12 lections received from or on behalf of the in13 sured less expected administrative expenses); 

14 ‘‘(iii) expected recoveries; and 

15 ‘‘(iv) expected changes in claims, pre16 miums, or recoveries resulting from the exercise 

17 by the insured of any option included in the in18 surance commitment. 

19 ‘‘(C) The cost of a modification is the difference 

20 between the current estimate of the net present 

21 value of the remaining cash flows under the terms 

22 of the insurance commitment, and the current esti23 mate of the net present value of the remaining cash 

24 flows under the terms of the insurance commitment 

25 as modified. 
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1 ‘‘(D) The cost of a reestimate is the difference 

2 between the net present value of the amount cur3 rently required by the financing account to pay esti4 mated claims and other expenditures and the 

5 amount currently available in the financing account. 

6 The cost of a reestimate shall be accounted for in 

7 the current year in the budget of the Government 

8 pursuant to section 1105(a) of title 31, United 

9 States Code. 

10 ‘‘(E) For purposes of this definition, expected 

11 administrative expenses shall be construed as the 

12 amount estimated to be necessary for the proper ad13 ministration of the insurance program. This amount 

14 may differ from amounts actually appropriated or 

15 otherwise made available for the administration of 

16 the program. 

17 ‘‘(4) The term ‘program account’ means the 

18 budget account for the risk-assumed cost, and for 

19 paying all costs of administering the insurance pro20 gram, and is the account from which the risk-as21 sumed cost is disbursed to the financing account. 

22 ‘‘(5) The term ‘financing account’ means the 

23 nonbudget account that is associated with each pro24 gram account which receives payments from or 

25 makes payments to the program account, receives 
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1 premiums and other payments from the public, pays 

2 insurance claims, and holds balances. 

3 ‘‘(6) The term ‘modification’ means any Gov4 ernment action that alters the risk-assumed cost of 

5 an existing insurance commitment from the current 

6 estimate of cash flows. This includes any action re7 sulting from new legislation, or from the exercise of 

8 administrative discretion under existing law, that di9 rectly or indirectly alters the estimated cost of exist10 ing insurance commitments. 

11 ‘‘(7) The term ‘model’ means any actuarial, fi12 nancial, econometric, probabilistic, or other method13 ology used to estimate the expected frequency and 

14 magnitude of loss-producing events, expected pre15 miums or collections from or on behalf of the in16 sured, expected recoveries, and administrative ex17 penses. 

18 ‘‘(8) The term ‘current’ has the same meaning 

19 as in section 250(c)(9) of the Balanced Budget and 

20 Emergency Deficit Control Act of 1985. 

21 ‘‘(9) The term ‘OMB’ means the Director of 

22 the Office of Management and Budget. 

23 ‘‘(10) The term ‘CBO’ means the Director of 

24 the Congressional Budget Office. 
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1 ‘‘(11) The term ‘GAO’ means the Comptroller 

2 General of the United States. 

3 ‘‘SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; 

4 ACTUARIAL COST ACCOUNT. 

5 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There 

6 is authorized to be appropriated $600,000 for each of fis7 cal years 2006 through 2011 to the Director of the Office 

8 of Management and Budget and each agency responsible 

9 for administering a Federal program to carry out this 

10 title. 

11 ‘‘(b) TREASURY TRANSACTIONS WITH THE FINANC12 ING ACCOUNTS.—The Secretary of the Treasury shall bor13 row from, receive from, lend to, or pay the insurance fi14 nancing accounts such amounts as may be appropriate. 

15 The Secretary of the Treasury may prescribe forms and 

16 denominations, maturities, and terms and conditions for 

17 the transactions described above. The authorities de18 scribed above shall not be construed to supersede or over19 ride the authority of the head of a Federal agency to ad20 minister and operate an insurance program. All the trans21 actions provided in this subsection shall be subject to the 

22 provisions of subchapter II of chapter 15 of title 31, 

23 United States Code. Cash balances of the financing ac24 counts in excess of current requirements shall be main-
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1 tained in a form of uninvested funds, and the Secretary 

2 of the Treasury shall pay interest on these funds. 

3 ‘‘(c) APPROPRIATION OF AMOUNT NECESSARY TO

4 COVER RISK-ASSUMED COST OF INSURANCE COMMIT5 MENTS AT TRANSITION DATE.—(1) A financing account 

6 is established on September 30, 2010, for each Federal 

7 insurance program. 

8 ‘‘(2) There is appropriated to each financing account 

9 the amount of the risk-assumed cost of Federal insurance 

10 commitments outstanding for that program as of the close 

11 of September 30, 2010. 

12 ‘‘(3) These financing accounts shall be used in imple13 menting the budget accounting required by this title. 

14 ‘‘SEC. 606. EFFECTIVE DATE. 

15 ‘‘(a) IN GENERAL.—This title shall take effect imme16 diately and shall expire on September 30, 2012. 

17 ‘‘(b) SPECIAL RULE.—If this title is not reauthorized 

18 by September 30, 2012, then the accounting structure and 

19 budgetary treatment of Federal insurance programs shall 

20 revert to the accounting structure and budgetary treat21 ment in effect immediately before the date of enactment 

22 of this title.’’. 

23 (b) CONFORMING AMENDMENT.—The table of con24 tents set forth in section 1(b) of the Congressional Budget 

25 and Impoundment Control Act of 1974 is amended by in-
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1 serting after the item relating to section 507 the following 

2 new items: 

‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL INSURANCE 

PROGRAMS 

‘‘Sec. 601. Short title. 

‘‘Sec. 602. Budgetary treatment. 

‘‘Sec. 603. Timetable for implementation of accrual budgeting for Federal insurance programs. 

‘‘Sec. 604. Definitions. 

‘‘Sec. 605. Authorizations to enter into contracts; actuarial cost account. 

‘‘Sec. 606. Effective date.’’. 

3 TITLE V—MAINTAINING A COM4 MITMENT TO THE FAMILY 

5 BUDGET 

6 Subtitle A—Further Enforcement 

7 Amendments 

8 SEC. 501. SUPER-MAJORITY POINTS OF ORDER IN THE 

9 HOUSE OF REPRESENTATIVES AND THE SEN10 ATE. 

11 (a) Section 904 of the Congressional Budget Act of 

12 1974 is amended as follows: 

13 (1) In subsection (c)(1), insert ‘‘312(g), (h), (i), 

14 and (j),’’ before ‘‘313,’’, and insert ‘‘316, 318, 

15 319(a)’’ before ‘‘904(c),’’. 

16 (2) In subsection (c) strike ‘‘three-fifths’’ each 

17 place it appears and insert ‘‘two-thirds’’. 

18 (3)(A) In subsection (d)(2), insert ‘‘312(g), (h), 

19 (i), and (j),’’ before ‘‘313,’’, and insert ‘‘316, 318, 

20 319(a)’’ before ‘‘904(c),’’. 
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1 (B) In subsection (d), strike ‘‘three-fifths’’ each 

2 place it appears and insert ‘‘two-thirds’’. 

3 (4)(A) In subsections (c)(2) and (d)(3), strike 

4 ‘‘311(a),’’. 

5 (B) In subsections (c)(1) and (d)(2) insert 

6 ‘‘311(a),’’ after ‘‘310(d)(2),’’. 

7 (5) In subsections (c)(1), (c)(2), (d)(2), and 

8 (d)(3) by inserting ‘‘or the House of Representa9 tives’’ after ‘‘Senate’’ each place it appears. 

10 (6) Strike subsection (e). 

11 SEC. 502. BUDGET RESOLUTION ENFORCEMENT POINT OF 

12 ORDER. 

13 (a) ENTITLEMENT POINT OF ORDER.—Section 312 

14 of the Congressional Budget Act of 1974 (as amended by 

15 section 221(d)) is further amended by adding at the end 

16 the following new subsection: 

17 ‘‘(j) BUDGET RESOLUTION ENFORCEMENT POINT OF

18 ORDER.—It shall not be in order in the House of Rep19 resentatives or the Senate to consider any joint resolution 

20 on the budget for a fiscal year, or amendment thereto or 

21 conference report thereon, that— 

22 ‘‘(1) is not consistent with the discretionary 

23 spending limits set forth in section 251(b) of the 

24 Balanced Budget and Emergency Deficit Control 

25 Act of 1985; or 
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1 ‘‘(2) provides for an increase in the aggregate 

2 level of direct spending for the fiscal year of the res3 olution or any ensuing fiscal year included in such 

4 resolution.’’. 

5 SEC. 503. POINT OF ORDER WAIVER PROTECTION. 

6 Rule XIII of the Rules of the House of Representa7 tives is amended by adding at the end the following new 

8 clause: 

9 ‘‘8. (a) It shall not be in order to consider a rule or 

10 order that would waive the provisions of any section of 

11 the Congressional Budget Act of 1974 referred to in sec12 tion 904(c)(1) of such Act or of section 302 of the Family 

13 Budget Protection Act of 2005. 

14 ‘‘(b) As disposition of a point of order under para15 graph (a), the Chair shall put the question of consider16 ation with respect to the proposition that is the subject 

17 of the point of order. A question of consideration under 

18 this clause shall be debatable for 10 minutes by the Mem19 ber initiating the point of order and for 10 minutes by 

20 an opponent of the point of order, but shall otherwise be 

21 decided without intervening motion except one that the 

22 House adjourn or that the Committee of the Whole rise, 

23 as the case may be. 

24 ‘‘(c) The disposition of the question of consideration 

25 under this clause with respect to a bill or joint resolution 
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1 shall be considered also to determine the question of con2 sideration under this clause with respect to an amendment 

3 made in order as original text.’’. 

4 Subtitle B—The Byrd Rule 

5 SEC. 511. LIMITATION ON BYRD RULE. 

6 (a) PROTECTION OF CONFERENCE REPORTS.—Sec7 tion 313 of the Congressional Budget Act of 1974 is 

8 amended— 

9 (1) in subsection (b)(1), by striking subpara10 graph (E) through the semicolon at the end thereof 

11 and by redesignating subparagraph (F) as subpara12 graph (E); 

13 (2) in subsection (c), by striking ‘‘and again 

14 upon the submission of a conference report on such 

15 a reconciliation bill or resolution,’’; 

16 (3) by striking subsection (d); 

17 (4) by redesignating subsection (e) as sub18 section (d); and 

19 (5) in subsection (e), as redesignated— 

20 (A) by striking ‘‘, motion, or conference re21 port’’ the first place it appears and inserting ‘‘, 

22 or motion’’; and 

23 (B) by striking ‘‘, motion, or conference re24 port’’ the second and third places it appears 

25 and inserting ‘‘or motion’’. 
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1 (b) CONFORMING AMENDMENT.—The first sentence 

2 of section 312(e) of the Congressional Budget Act of 1974 

3 is amended by inserting ‘‘, except for section 313,’’ after 

4 ‘‘Act’’. 

5 Subtitle C—Treatment of Extra6 neous Appropriations in Omni7 bus Appropriation Measures 

8 SEC. 521. TREATMENT OF EXTRANEOUS APPROPRIATIONS. 

9 (a) IN GENERAL.—Title III of the Congressional 

10 Budget Act of 1974 (as amended by section 127(a)) is 

11 further amended by adding at the end the following new 

12 section: 

13 ‘‘TREATMENT OF EXTRANEOUS APPROPRIATIONS IN

14 OMNIBUS APPROPRIATION MEASURES

15 ‘‘SEC. 319. (a) POINT OF ORDER.—It shall not be 

16 in order in the House of Representatives or the Senate 

17 to consider an omnibus appropriation measure, or any 

18 amendment thereto or conference report thereon, that ap19 propriates funds for any program, project, or activity that 

20 is not within the subject-matter jurisdiction of any sub21 committee of the Committee on Appropriations of the 

22 House of Representatives or Senate, as applicable, with 

23 jurisdiction over any regular appropriation bill contained 

24 in such measure. 

25 ‘‘(b) DEFINITIONS.—As used in this section: 
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1 ‘‘(1) The term ‘omnibus appropriation measure’ 

2 means any bill or joint resolution making continuing 

3 appropriations for a fiscal year and that is com4 prised of more than one regular appropriation bills. 

5 ‘‘(2) The term ‘regular appropriation bill’ 

6 means any annual appropriation bill making appro7 priations, otherwise making funds available, or 

8 granting authority, for any of the following cat9 egories of projects and activities: 

10 ‘‘(A) Agriculture, rural development, Food 

11 and Drug Administration, and related agencies 

12 programs. 

13 ‘‘(B) The Department of Defense. 

14 ‘‘(C) Energy and water development, and 

15 related agencies. 

16 ‘‘(D) Foreign operations, export financing, 

17 and related programs. 

18 ‘‘(E) The Department of Homeland Secu19 rity. 

20 ‘‘(F) The Department of the Interior, En21 vironmental Protection Agency, and related 

22 agencies. 

23 ‘‘(G) The Departments of Labor, Health 

24 and Human Services, and Education, and re25 lated agencies. 
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1 ‘‘(H) Military quality of life and Veterans 

2 Affairs, and related agencies. 

3 ‘‘(I) Science, the Departments of State, 

4 Justice, and Commerce, and related agencies. 

5 ‘‘(J) The Departments of Transportation, 

6 Treasury, and Housing and Urban Develop7 ment, the Judiciary, the District of Columbia, 

8 and independent agencies. 

9 ‘‘(K) The Legislative Branch.’’. 

10 (b) CONFORMING AMENDMENT.—The table of con11 tents set forth in section 1(b) of the Congressional Budget 

12 and Impoundment Control Act of 1974 is amended by in13 serting after the item relating to section 318 the following 

14 new item: 

‘‘Sec. 319. Treatment of extraneous appropriations in omnibus appropriation 

measures.’’. 

Æ