I

107TH CONGRESS

1ST SESSION H. R. 1521

To amend the Balanced Budget and Emergency Deficit Control Act of 1985

to provide for sequestration of Federal spending in excess of 18 percent

of gross domestic product.

IN THE HOUSE OF REPRESENTATIVES

APRIL 4, 2001

Mr. SMITH of Michigan (for himself, Mr. KINGSTON, Mr. AKIN, Mr.

HOSTETTLER, Mr. SCHAFFER, Mr. HOEKSTRA, Mr. DEMINT, Mr.

LARGENT, Mr. BARTLETT of Maryland, Mr. FLAKE, Mr. SAM JOHNSON

of Texas, Mr. DOOLITTLE, Mr. GOODE, Mr. JONES of North Carolina,

Mr. SOUDER, and Mr. TANCREDO) introduced the following bill; which

was referred to the Committee on the Budget

A BILL

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to provide for sequestration of Federal

spending in excess of 18 percent of gross domestic product.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SEQUESTRATION OF FEDERAL SPENDING IN

2 EXCESS OF 18 PERCENT OF GROSS DOMESTIC

3 PRODUCT.

4 (a) SEQUESTRATION TO REDUCE THE PUBLIC

5 DEBT.—Part C of the Balanced Budget and Emergency

6 Deficit Control Act of 1985 is amended by adding after

7 section 253 the following new section:

8 ‘‘SEC. 253A. SEQUESTRATION TO FEDERAL SPENDING.

9 ‘‘(a) SEQUESTRATION.—For any of fiscal years 2002

10 through 2006, within 15 days after Congress adjourns to

11 end a session, and on the same day as a sequestration

12 (if any) under sections 251 and 252, but after any seques13 tration of budget-year budgetary resources required by

14 those sections, there shall be a sequestration equivalent

15 to the amount by which total outlays exceed 18 percent

16 of the gross domestic product for that fiscal year as deter17 mined by OMB.

18 ‘‘(b) APPLICABILITY.—Each non-exempt account

19 shall be reduced by a dollar amount calculated by multi20 plying the level of budgetary resources in that account at

21 that time by the uniform percentage necessary to carry

22 out subsection (a). All obligational authority reduced

23 under this section shall be done in a manner that makes

24 such reductions permanent.’’.

25 (b) REPORTS.—Section 254 of the Balanced Budget

26 and Emergency Deficit Control Act of 1985 is amended—
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1 (1) in subsection (c)(1), by inserting striking

2 ‘‘and’’ and by inserting ‘‘, and sequestration to re3 duce spending to 18 percent of gross domestic prod4 uct’’ before ‘‘based on’’;

5 (2) in subsection (c), by redesignating para6 graph (4) as paragraph (5) and by inserting after

7 paragraph (3) the following new paragraph:

8 ‘‘(4) SEQUESTRATION TO REDUCE SPENDING

9 REPORTS.—The preview reports shall set forth for

10 the budget year estimates for each of the following:

11 ‘‘(A) The gross domestic product.

12 ‘‘(B) The total amount of outlays.

13 ‘‘(C) The sequestration percentage nec14 essary to achieve the required reduction in ac15 counts under section 253A(b).’’; and

16 (3) in subsection (f), by redesignating para17 graphs (4) and (5) as paragraphs (5) and (6), re18 spectively, and by inserting after paragraph (3) the

19 following new paragraph:

20 ‘‘(4) SEQUESTRATION TO REDUCE SPENDING

21 REPORTS.—The final reports shall contain all of the

22 information contained in the sequestration to reduce

23 spending reports.’’.

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