I 

110TH CONGRESS 

1ST SESSION H. R. 1121 

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

to extend the discretionary spending limits through fiscal year 2012, 

to extend paygo for direct spending, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 16, 2007 

Mr. BARRETT of South Carolina introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committee 

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

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

A BILL 

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to extend the discretionary spending 

limits through fiscal year 2012, to extend paygo for 

direct spending, 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. 

4 This Act may be cited as the ‘‘Government Waste Re5 duction Act of 2007’’. 


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1 SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS. 

2 (a) ADJUSTMENTS TO DISCRETIONARY SPENDING

3 LIMITS.—In the matter that precedes subparagraph (A) 

4 of section 251(b)(2) of the Balanced Budget and Emer5 gency Deficit Control Act of 1985, strike ‘‘through 2002’’. 

6 (b) DISCRETIONARY SPENDING LIMIT.—Section 

7 251(c) of the Balanced Budget and Emergency Deficit 

8 Control Act of 1985 is amended as follows: 

9 (1) Strike paragraphs (1) through (16) and in10 sert the following new paragraphs: 

11 ‘‘(1) with respect to fiscal year 2008, for the 

12 discretionary category: $847,322,000,000 in total 

13 new budget authority; 

14 ‘‘(2) with respect to fiscal year 2009, for the 

15 discretionary category: an amount of new budget au16 thority equal to the amount of total new budget au17 thority specified in paragraph (1) adjusted to reflect 

18 the change in Consumer Price Index over the pre19 vious 12 months prior to October 1, 2007; 

20 ‘‘(3) with respect to fiscal year 2010, for the 

21 discretionary category: an amount of new budget au22 thority equal to the amount of total new budget au23 thority provided under paragraph (2) adjusted to re24 flect the change in Consumer Price Index over the 

25 previous 12 months prior to October 1, 2008; 


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1 ‘‘(4) with respect to fiscal year 2012, for the 

2 discretionary category: an amount of new budget au3 thority equal to the amount of total new budget au4 thority specified in paragraph (3) adjusted to reflect 

5 the change in Consumer Price Index over the pre6 vious 12 months prior to October 1, 2010; and 

7 ‘‘(5) with respect to fiscal year 2012, for the 

8 discretionary category: an amount of new budget au9 thority equal to the amount of total new budget au10 thority specified in paragraph (4) adjusted to reflect 

11 the change in Consumer Price Index over the pre12 vious 12 months prior to October 1, 2010;’’. 

13 (c) ADJUSTMENTS TO DISCRETIONARY SPENDING

14 LIMITS.— 

15 (1) Section 251(b)(2) of the Balanced Budget 

16 and Emergency Deficit Control Act of 1985 is 

17 amended by striking subparagraphs (C) through (H) 

18 and by inserting after subparagraph (B) the fol19 lowing new subparagraph: 

20 ‘‘(C) ACCRUAL ACCOUNTING.—If a bill or 

21 joint resolution is enacted that charges Federal 

22 agencies for the full cost of accrued Federal re23 tirement and health benefits and a bill or joint 

24 resolution making appropriations is enacted 

25 that provides new budget authority to carry out 


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1 the legislation charging Federal agencies for 

2 such accrued costs, the adjustment shall be 

3 equal to the reduction in mandatory budget au4 thority and the outlays flowing therefrom esti5 mated to result from the legislation charging 

6 Federal agencies for such accrued costs.’’. 

7 (2) Section 251(b)(2)(A) of the Balanced Budg8 et and Emergency Deficit Control Act of 1985 is 

9 amended by striking the last sentence. 

10 (d) DEFINITION OF CONSUMER PRICE INDEX.—Sec11 tion 3 of the Congressional Budget and Impoundment 

12 Control Act of 1974 is amended by adding at the end the 

13 following new paragraph: 

14 ‘‘(11) The term ‘Consumer Price Index’ refers 

15 to the Consumer Price Index for All Urban Con16 sumers (all items; United States city average), pub17 lished by the Bureau of Labor Statistics.’’. 

18 SEC. 3. EXTENSION OF PAY-AS-YOU-GO. 

19 Section 252 of the Balanced Budget and Emergency 

20 Deficit Control Act of 1985 is amended to read as follows: 

21 ‘‘SEC. 252. ENFORCING PAY-AS-YOU-GO. 

22 ‘‘(a) PURPOSE.—The purpose of this section is to as23 sure that any legislation enacted before October 1, 2013, 

24 affecting direct spending that increases the deficit will 

25 trigger an offsetting sequestration. 


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1 ‘‘(b) SEQUESTRATION.— 

2 ‘‘(1) TIMING.—Not later than 15 calendar days 

3 after the date Congress adjourns to end a session 

4 and on the same day as a sequestration (if any) 

5 under section 251, there shall be a sequestration to 

6 offset the amount of any net deficit increase caused 

7 by all direct spending legislation enacted before Oc8 tober 1, 2013, as calculated under paragraph (2). 

9 ‘‘(2) CALCULATION OF DEFICIT INCREASE.— 

10 OMB shall calculate the amount of deficit increase 

11 or decrease by adding— 

12 ‘‘(A) all OMB estimates for the budget 

13 year of direct spending legislation transmitted 

14 under subsection (d); 

15 ‘‘(B) the estimated amount of savings in 

16 direct spending programs applicable to budget 

17 year resulting from the prior year’s sequestra18 tion under this section or, if any, as published 

19 in OMB’s final sequestration report for that 

20 prior year; and 

21 ‘‘(C) any net deficit increase or decrease in 

22 the current year resulting from all OMB esti23 mates for the current year of direct spending 

24 legislation transmitted under subsection (d) of 


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1 this section that were not reflected in the final 

2 OMB sequestration report for the current year. 

3 ‘‘(D) for fiscal year 2008, before making 

4 the calculations required in subparagraphs (A) 

5 through (C), OMB shall assume an automatic 

6 deficit increase of $33,485,000,000. 

7 ‘‘(c) ELIMINATING A DEFICIT INCREASE.—(1) The 

8 amount required to be sequestered in a fiscal year under 

9 subsection (b) shall be obtained from non-exempt direct 

10 spending accounts from actions taken in the following 

11 order: 

12 ‘‘(A) FIRST.—All reductions in automatic 

13 spending increases specified in section 256(a) shall 

14 be made. 

15 ‘‘(B) SECOND.—If additional reductions in di16 rect spending accounts are required to be made, the 

17 maximum reductions permissible under sections 

18 256(b) (guaranteed and direct student loans) and 

19 256(c) (foster care and adoption assistance) shall be 

20 made. 

21 ‘‘(C) THIRD.—(i) If additional reductions in di22 rect spending accounts are required to be made, 

23 each remaining non-exempt direct spending account 

24 shall be reduced by the uniform percentage necVerDate Aug 31 2005 03:01 Feb 22, 2007 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1121.IH H1121

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1 essary to make the reductions in direct spending re2 quired by paragraph (1). 

3 ‘‘(ii) For purposes of determining reductions 

4 under clause (i), outlay reductions (as a result of se5 questration of Commodity Credit Corporation com6 modity price support contracts in the fiscal year of 

7 a sequestration) that would occur in the following 

8 fiscal year shall be credited as outlay reductions in 

9 the fiscal year of the sequestration. 

10 ‘‘(2) For purposes of this subsection, accounts shall 

11 be assumed to be at the level in the baseline for fiscal 

12 year 2009 and for fiscal years 2010 through 2013 at the 

13 baseline after adjusting for any sequester in fiscal year 

14 2008. 

15 ‘‘(d) ESTIMATES.— 

16 ‘‘(1) CBO ESTIMATES.—As soon as practicable 

17 after Congress completes action on any direct spend18 ing, CBO shall provide an estimate to OMB of that 

19 legislation. 

20 ‘‘(2) OMB ESTIMATES.—Not later than 7 cal21 endar days (excluding Saturdays, Sundays, and legal 

22 holidays) after the date of enactment of any direct 

23 spending, OMB shall transmit a report to the House 

24 of Representatives and to the Senate containing— 

25 ‘‘(A) the CBO estimate of that legislation; 


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1 ‘‘(B) an OMB estimate of that legislation 

2 using current economic and technical assump3 tions; and 

4 ‘‘(C) an explanation of any difference be5 tween the 2 estimates. 

6 ‘‘(3) SIGNIFICANT DIFFERENCES.—If during 

7 the preparation of the report under paragraph (2) 

8 OMB determines that there is a significant dif9 ference between the OMB and CBO estimates, OMB 

10 shall consult with the Committees on the Budget of 

11 the House of Representatives and the Senate regard12 ing that difference and that consultation, to the ex13 tent practicable, shall include written communication 

14 to such committees that affords such committees the 

15 opportunity to comment before the issuance of that 

16 report. 

17 ‘‘(4) SCOPE OF ESTIMATES.—The estimates 

18 under this section shall include the amount of 

19 change in outlays for the current year (if applica20 ble), the budget year, and each outyear excluding 

21 any amounts resulting from— 

22 ‘‘(A) full funding of, and continuation of, 

23 the deposit insurance guarantee commitment in 

24 effect under current estimates; and 


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1 ‘‘(B) emergency provisions as designated 

2 under subsection (e). 

3 ‘‘(5) SCOREKEEPING GUIDELINES.—OMB and 

4 CBO, after consultation with each other and the 

5 Committees on the Budget of the House of Rep6 resentatives and the Senate, shall— 

7 ‘‘(A) determine common scorekeeping 

8 guidelines; and 

9 ‘‘(B) in conformance with such guidelines, 

10 prepare estimates under this section. 

11 ‘‘(e) EMERGENCY LEGISLATION.—If a provision of 

12 direct spending legislation is enacted that the President 

13 designates as an emergency requirement and that the Con14 gress so designates in statute, the amounts of new budget 

15 authority, outlays, and receipts in all fiscal years resulting 

16 from that provision shall be designated as an emergency 

17 requirement in the reports required under subsection (d) 

18 of this section.’’. 

19 SEC. 4. CONFORMING AMENDMENTS. 

20 (a) EXPIRATION.—(1) Section 254(c)(2) of the Bal21 anced Budget and Emergency Deficit Control Act of 1985 

22 is amended by striking ‘‘2002’’ and inserting ‘‘2013’’. 

23 (2) Section 254(f)(2)(A) of the Balanced Budget and 

24 Emergency Deficit Control Act of 1985 is amended by 

25 striking ‘‘2002’’ and inserting ‘‘2013’’. 


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1 (b) EXPIRATION.—Section 275(b) of the Balanced 

2 Budget and Emergency Deficit Control Act of 1985 is 

3 amended by striking ‘‘2002’’ and inserting ‘‘2013’’. 

4 SEC. 5. EMERGENCY SPENDING LEGISLATION AND THE 

5 BASELINE. 

6 (a) IN GENERAL.—Section 257(a) of the Balanced 

7 Budget and Emergency Deficit Control Act of 1985 is 

8 amended by inserting ‘‘, except for emergency appropria9 tions covered by section 251(b)(2)(A) and emergency leg10 islation covered by section 252(e)’’ before the period. 

11 (b) DIRECT SPENDING AND RECEIPTS.—Section 

12 257(b)(2) of the Balanced Budget and Emergency Deficit 

13 Control Act of 1985 is amended by adding at the end the 

14 following new subparagraph: 

15 ‘‘(E) Emergency legislation covered by sec16 tion 252(e) shall not be extended in the base17 line.’’. 

18 (c) DISCRETIONARY APPROPRIATIONS.—Section 

19 257(c) of the Balanced Budget and Emergency Deficit 

20 Control Act of 1985 is amended by adding at the end the 

21 following new paragraph: 

22 ‘‘(7) Emergency appropriations covered by sec23 tion 251(b)(2)(A) shall not be extended in the base24 line.’’. 


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1 SEC. 6. OMB EMERGENCY CRITERIA. 

2 (a) DEFINITION OF EMERGENCY.—Section 3 of the 

3 Congressional Budget and Impoundment Control Act of 

4 1974 (as amended by section 2(d) is further amended by 

5 adding at the end the following new paragraph: 

6 ‘‘(12)(A) The term ‘emergency’ means a situa7 tion that— 

8 ‘‘(i) requires new budget authority and 

9 outlays (or new budget authority and the out10 lays flowing therefrom) for the prevention or 

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

12 property, or a threat to national security; and 

13 ‘‘(ii) is unanticipated. 

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

15 ‘unanticipated’ means that the underlying situation 

16 is— 

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

18 into being or not building up over time; 

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

20 compelling need requiring immediate action; 

21 ‘‘(iii) unforeseen, which means not pre22 dicted or anticipated as an emerging need; and 

23 ‘‘(iv) temporary, which means not of a per24 manent duration.’’. 

25 (b) CONFORMING AMENDMENT.—Section 250(c) of 

26 the Balanced Budget and Emergency Deficit Control Act 


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1 of 1985 is amended by adding at the end the following 

2 new paragraph: 

3 ‘‘(20) The term ‘emergency’ has the meaning 

4 given to such term in section 3 of the Congressional 

5 Budget and Impoundment Control Act of 1974.’’. 

6 SEC. 7. RULE RESPECTING DESIGNATION OF LEGISLATIVE 

7 PROVISION AS AN EMERGENCY. 

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

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

10 following new section: 

11 ‘‘RULE RESPECTING DESIGNATION OF LEGISLATIVE

12 PROVISION AS AN EMERGENCY

13 ‘‘SEC. 316. (a) GUIDANCE.—In making a designation 

14 of a provision of legislation as an emergency requirement 

15 under section 251(b)(2)(A) or 252(e) of the Balanced 

16 Budget and Emergency Deficit Control Act of 1985, the 

17 committee report and any statement of managers accom18 panying that legislation shall analyze whether a proposed 

19 emergency requirement meets the definition of an ‘emer20 gency’ set out in section 3 of the Congressional Budget 

21 and Impoundment Control Act of 1974. 

22 ‘‘(b) IN GENERAL.—It shall not be in order in the 

23 Senate or the House of Representatives to consider any 

24 bill, joint resolution, or conference report that contains an 

25 emergency designation under section 251(b)(2)(A) or 

26 252(e) of the Balanced Budget and Emergency Deficit 


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1 Control Act of 1985 unless the proposed emergency re2 quirement meets the definition of an ‘emergency’ set out 

3 in section 3 of the Congressional Budget and Impound4 ment Control Act of 1974. 

5 ‘‘(c) WAIVER AND APPEAL IN THE SENATE.—This 

6 section may be waived or suspended in the Senate only 

7 by an affirmative vote of three-fifths of the Members, duly 

8 chosen and sworn. An affirmative vote of three-fifths of 

9 the Members of the Senate, duly chosen and sworn, shall 

10 be required in the Senate to sustain an appeal of the rul11 ing of the Chair on a point of order raised under this sec12 tion. 

13 ‘‘(d) ENFORCEMENT IN THE HOUSE OF REPRESENT14 ATIVES.—It shall not be in order in the House of Rep15 resentatives to consider a rule or order that waives the 

16 application of subsection (b). 

17 ‘‘(e) DISPOSITION OF POINTS OF ORDER IN THE

18 HOUSE.—As disposition of a point of order under sub19 section (b) or subsection (d), the Chair shall put the ques20 tion of consideration with respect to the proposition that 

21 is the subject of the point of order. A question of consider22 ation under this section shall be debatable for 10 minutes 

23 by the Member initiating the point of order and for 10 

24 minutes by an opponent of the point of order, but shall 

25 otherwise be decided without intervening motion except 


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1 one that the House adjourn or that the Committee of the 

2 Whole rise, as the case may be. 

3 ‘‘(f) EFFECT ON AMENDMENT IN ORDER AS ORIGI4 NAL TEXT IN THE HOUSE.—The disposition of the ques5 tion of consideration under this section with respect to a 

6 bill or joint resolution shall be considered also to deter7 mine the question of consideration under this subsection 

8 with respect to an amendment made in order as original 

9 text.’’. 

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 315 the following 

14 new item: 

‘‘Sec. 316. Rule respecting designation of legislative provision as an emergency.’’. 

Æ 


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