II 

113TH CONGRESS 

2D SESSION S. 2495 

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

budget through reductions of discretionary and mandatory spending. 

IN THE SENATE OF THE UNITED STATES 

JUNE 19, 2014 

Mr. ENZI (for himself, Mr. PAUL, Mr. RUBIO, Mr. RISCH, Mr. BARRASSO, Mr. 

VITTER, and Mr. ISAKSON) introduced the following bill; which was read 

twice and referred to the Committee on the Budget 

A BILL 

To prevent a fiscal crisis by enacting legislation to balance 

the Federal budget through reductions of discretionary 

and mandatory spending. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Reduction Act of 2014’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE. 

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

8 (1) The fiscal crisis faced by the Federal Gov9 ernment demands immediate action. 


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1 (2) The dramatic growth in spending and debt 

2 in recent years threatens our economic and national 

3 security: 

4 (A) Federal spending has grown from 18 

5 percent of GDP in 2001 to over 20 percent of 

6 GDP in 2014. 

7 (B) Total Federal debt exceeds 

8 $17,000,000,000,000 and is projected to in9 crease each year over the next 10 years. 

10 (C) Without action, the Federal Govern11 ment will continue to run massive deficits in the 

12 next decade and total Federal debt will rise to 

13 $27,000,000,000,000 by 2024. 

14 (D) Interest payments on this debt will 

15 soon rise to the point where balancing the 

16 budget as a matter of policy is beyond the reach 

17 of Congress. 

18 (3) Due to recent tax hikes, Federal revenues 

19 are scheduled to rise to approximately 18 percent of 

20 GDP, inline with the average of about 18 percent of 

21 GDP over the past 40 years. 

22 (4) Absent reform, the growth of Social Secu23 rity, Medicare, Medicaid, and other health-related 

24 spending will overwhelm all other Federal programs 

25 and consume all projected tax revenues. 


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

2 the fiscal crisis by— 

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

6 (2) achieving balance by reducing spending one 

7 percent per year until spending equals projected 

8 long-term revenues; and 

9 (3) reforming entitlement programs to ensure 

10 long-term fiscal stability and balance. 

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

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

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

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

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

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

19 cap’ means: 

20 ‘‘(1) FISCAL YEAR 2015.—For fiscal year 2015, 

21 the aggregate outlays (less net interest payments) 

22 shall be $3,774,000,000,000, less one percent. 

23 ‘‘(2) FISCAL YEAR 2016.—For fiscal year 2016, 

24 the aggregate outlays (less net interest payments) 


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1 shall be the amount computed under paragraph (1), 

2 less one percent. 

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

4 the aggregate outlays (less net interest payments) 

5 shall be the amount computed under paragraph (2), 

6 less one percent. 

7 ‘‘(4) FISCAL YEAR 2018 AND SUBSEQUENT FIS8 CAL YEARS.— 

9 ‘‘(A) IN GENERAL.—For fiscal year 2018 

10 and each fiscal year thereafter, the aggregate 

11 outlays shall be 18 percent of the gross domes12 tic product for that fiscal year, as estimated by 

13 the Office of Management and Budget prior to 

14 March of the previous fiscal year. 

15 ‘‘(B) LIMITATION.—Notwithstanding sub16 paragraph (A), for any fiscal year beginning 

17 with fiscal year 2019, the aggregate projected 

18 outlays may not be less than the aggregate pro19 jected outlays for the preceding fiscal year. 

20 ‘‘(b) SEQUESTRATION.— 

21 ‘‘(1) IN GENERAL.— 

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

23 45 calendar days after the beginning of a fiscal 

24 year, the Office of Management and Budget 

25 shall prepare and the President shall order a 


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1 sequestration to eliminate any excess outlay 

2 amount. 

3 ‘‘(B) DEFINITIONS.— 

4 ‘‘(i) FISCAL YEARS 2015 THROUGH

5 2017.—For each of fiscal years 2015 

6 through 2017 and for purposes of this sub7 section, the term ‘excess outlay amount’ 

8 means the amount by which total projected 

9 Federal outlays (less net interest pay10 ments) for a fiscal year exceeds the outlay 

11 cap for that fiscal year. 

12 ‘‘(ii) FISCAL YEAR 2018 AND SUBSE13 QUENT FISCAL YEARS.—For fiscal year 

14 2018 and each fiscal year thereafter and 

15 for purposes of this subsection, the term 

16 ‘excess outlay amount’ means the amount 

17 by which total projected Federal outlays 

18 for a fiscal year exceeds the outlay cap for 

19 that fiscal year. 

20 ‘‘(2) SEQUESTRATION.— 

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

22 15 of each year, the Congressional Budget Of23 fice shall issue a sequestration preview report 

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


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

2 20 of each year, the Office of Management and 

3 Budget shall issue a sequestration preview re4 port as described in section 254(c)(4). 

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

6 each year, the Office of Management and Budg7 et shall issue its final sequestration report as 

8 described in section 254(f)(3). It shall be ac9 companied by a Presidential order detailing uni10 form spending reductions equal to the excess 

11 outlay amount as defined in this section. 

12 ‘‘(D) PROCESS.—The reductions shall gen13 erally follow the process set forth in sections 

14 253 and 254, except as provided in this section. 

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

16 20 report by the Office of Management and Budget 

17 projects a sequestration, the Committee on the 

18 Budget of the Senate and the Committee on the 

19 Budget of the House of Representatives may report 

20 a resolution directing committees of their House to 

21 change the existing law to achieve the spending re22 ductions outlined in the August 20 report necessary 

23 to meet the outlay limits. 

24 ‘‘(c) NO EXEMPT PROGRAMS.—Section 255 and sec25 tion 256 shall not apply to this section or any sequestraVerDate Mar 15 2010 21:45 Jun 26, 2014 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2495.IS S2495

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1 tion order issued under this section, except that payments 

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

3 from the spending reductions under sequestration. 

4 ‘‘(d) LOOK BACK.—If, after November 14, a bill re5 sulting in outlays for the fiscal year in progress is enacted 

6 that causes excess outlays, the excess outlay amount for 

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

8 amounts of that breach.’’. 

9 (b) CONFORMING AMENDMENTS TO BBEDCA.— 

10 (1) SEQUESTRATION PREVIEW REPORTS.—Sec11 tion 254(c)(4) of the Balanced Budget and Emer12 gency Deficit Control Act of 1985 (2 U.S.C. 

13 904(c)(4)) is amended to read as follows: 

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

15 The preview reports shall set forth for the budget 

16 year estimates for the following: 

17 ‘‘(A)(i) For each of budget years 2015 

18 through 2017, the aggregate projected outlays 

19 (less net interest payments), less one percent. 

20 ‘‘(ii) For budget year 2018 and each sub21 sequent budget year, the estimated gross do22 mestic product (GDP) for that budget year. 

23 ‘‘(B) The amount of reductions required 

24 under section 253A. 


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1 ‘‘(C) The sequestration percentage nec2 essary to achieve the required reduction under 

3 section 253A.’’. 

4 (2) FINAL SEQUESTRATION REPORTS.—Section 

5 254(f)(3) of the Balanced Budget and Emergency 

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

7 amended to read as follows: 

8 ‘‘(3) OUTLAY CAPS SEQUESTRATION RE9 PORTS.—The final reports shall contain all the infor10 mation required in the outlay cap sequestration pre11 view reports. In addition, these reports shall contain, 

12 for the budget year, for each account to be seques13 tered, estimates of the baseline level of sequestrable 

14 budgetary resources and resulting outlays and the 

15 amount of budgetary sources to be sequestered and 

16 result in outlay reductions. The reports shall also 

17 contain estimates of the effects on outlays on the se18 questration of each outyear for direct spending pro19 grams.’’. 

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

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

22 by adding after section 315 the following: 

23 ‘‘SEC. 316. ENFORCEMENT PROCEDURES. 

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

25 House of Representatives or the Senate to consider any 


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1 bill, joint resolution, amendment, amendment between the 

2 Houses, or conference report that includes any provision 

3 that would cause the most recently reported, current out4 lay cap set forth in section 253A of the Balanced Budget 

5 and Emergency Deficit Control Act of 1985 to be 

6 breached. 

7 ‘‘(b) WAIVER OR SUSPENSION.— 

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

9 section may be waived or suspended in the Senate 

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

11 Members, duly chosen and sworn. 

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

13 section may be waived or suspended in the House of 

14 Representatives only by a rule or order proposing 

15 only to waive such provisions by an affirmative vote 

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

17 sworn. 

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

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

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

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

22 for the Speaker to entertain a motion to suspend the appli23 cation of this section under clause 1 of rule XV.’’. 

24 SEC. 4. CONFORMING AMENDMENTS. 

25 The table of contents set forth in— 


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

2 and Impoundment Control Act of 1974 is amended 

3 by inserting after the item relating to section 315 

4 the following new item: 

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

5 and 

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

7 Emergency Deficit Control Act of 1985 is amended 

8 by inserting after the item relating to section 253 

9 the following new item: 

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

10 SEC. 5. EFFECTIVE DATE. 

11 This Act and the amendments made by this Act shall 

12 apply to fiscal year 2015 and each fiscal year thereafter, 

13 including any reports and calculations required for imple14 mentation in fiscal year 2015. 

Æ 


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