Department of the Army Core Materials Relied Upon for FY2013 

Administrative Furlough

Note: These core materials do not constitute all of the materials relied 

upon to support the FY 2013 administrative furlough action. Agency 

representatives likely will supplement this file by submitting additional 

Department of the Army guidance, command/local policies, and employee 

specific documents. 

Table of Contents

Tab Title Page Number

1 Budget Control Act of 2011 1 

2 

Statement by General Raymond T. Odierno, Chief of Staff, 

United States Army, Before the Senate Armed Services 

Committee, First Session, 113th Congress, on Impacts of 

Sequestration and/or a Full-Year Continuing Resolution on 

the Army; February 12, 2013

29

3 

Secretary of Defense Memorandum, Subject: Preparations 

for Potential Sequestration on March 1 and Furlough 

Notifications; February 20, 2013

37

4 Secretary of Defense Letter to the Honorable Joseph R. 

Biden Jr., President of the Senate; February 20, 2013 39

5 

Office of the Assistant Secretary of Defense for Readiness 

and Force Management Memorandum, Subject: Total Force 

Management and Budgetary Uncertainty; February 21, 2013

41

6 

The White House, Sequestration Order for Fiscal Year 2013, 

Pursuant to Section 251A of the Balanced Budget and 

Emergency Deficit Control Act, as Amended; March 1, 2013

49

7 Secretary of Defense Memorandum, Subject: Furloughs; 

May 14, 2013 50

8 Secretary of Defense Message on Furloughs to All 

Department of Defense Personnel; May 14, 2013 60

9 

Assistant Secretary of the Army for Manpower and Reserve 

Affairs Memorandum, Subject: Department of the Army 

Fiscal Year 2013 Administrative Furlough; May 17, 2013

62 

10

Assistant Secretary of the Army for Manpower and Reserve 

Affairs Memorandum, Subject: Additional Exception to Fiscal 

Year (FY) 2013 Administrative Furlough; May 23, 2013 

87
S. 365 

One Hundred Twelfth Congress 

of the 

United States of America 

AT THE FIRST SESSION 

Begun and held at the City of Washington on Wednesday, 

the fifth day of January, two thousand and eleven 

An Act 

To provide for budget control. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Budget Control 

Act of 2011’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act 

is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Severability. 

TITLE I—TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER 

Sec. 101. Enforcing discretionary spending limits. 

Sec. 102. Definitions. 

Sec. 103. Reports and orders. 

Sec. 104. Expiration. 

Sec. 105. Amendments to the Congressional Budget and Impoundment Control Act of 1974. 

Sec. 106. Senate budget enforcement. 

TITLE II—VOTE ON THE BALANCED BUDGET AMENDMENT 

Sec. 201. Vote on the balanced budget amendment. 

Sec. 202. Consideration by the other House. 

TITLE III—DEBT CEILING DISAPPROVAL PROCESS 

Sec. 301. Debt ceiling disapproval process. 

Sec. 302. Enforcement of budget goal. 

TITLE IV—JOINT SELECT COMMITTEE ON DEFICIT REDUCTION 

Sec. 401. Establishment of Joint Select Committee. 

Sec. 402. Expedited consideration of joint committee recommendations. 

Sec. 403. Funding. 

Sec. 404. Rulemaking. 

TITLE V—PELL GRANT AND STUDENT LOAN PROGRAM CHANGES 

Sec. 501. Federal Pell grants. 

Sec. 502. Termination of authority to make interest subsidized loans to graduate 

and professional students. 

Sec. 503. Termination of direct loan repayment incentives. 

Sec. 504. Inapplicability of title IV negotiated rulemaking and master calendar exception. 

SEC. 2. SEVERABILITY. 

If any provision of this Act, or any application of such provision 

to any person or circumstance, is held to be unconstitutional, the 

remainder of this Act and the application of this Act to any other 

person or circumstance shall not be affected. 

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TITLE I—TEN-YEAR DISCRETIONARY 

CAPS WITH SEQUESTER 

SEC. 101. ENFORCING DISCRETIONARY SPENDING LIMITS. 

Section 251 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended to read as follows: 

‘‘SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS. 

‘‘(a) ENFORCEMENT.— 

‘‘(1) SEQUESTRATION.—Within 15 calendar days after Congress adjourns to end a session there shall be a sequestration 

to eliminate a budget-year breach, if any, within any category. 

‘‘(2) ELIMINATING A BREACH.—Each non-exempt account 

within a category shall be reduced by a dollar amount calculated 

by multiplying the enacted level of sequestrable budgetary 

resources in that account at that time by the uniform percentage necessary to eliminate a breach within that category. 

‘‘(3) MILITARY PERSONNEL.—If the President uses the 

authority to exempt any personnel account from sequestration 

under section 255(f), each account within subfunctional category 

051 (other than those military personnel accounts for which 

the authority provided under section 255(f) has been exercised) 

shall be further reduced by a dollar amount calculated by 

multiplying the enacted level of non-exempt budgetary 

resources in that account at that time by the uniform percentage necessary to offset the total dollar amount by which outlays 

are not reduced in military personnel accounts by reason of 

the use of such authority. 

‘‘(4) PART-YEAR APPROPRIATIONS.—If, on the date specified 

in paragraph (1), there is in effect an Act making or continuing 

appropriations for part of a fiscal year for any budget account, 

then the dollar sequestration calculated for that account under 

paragraphs (2) and (3) shall be subtracted from— 

‘‘(A) the annualized amount otherwise available by law 

in that account under that or a subsequent part-year appropriation; and 

‘‘(B) when a full-year appropriation for that account 

is enacted, from the amount otherwise provided by the 

full-year appropriation for that account. 

‘‘(5) LOOK-BACK.—If, after June 30, an appropriation for 

the fiscal year in progress is enacted that causes a breach 

within a category for that year (after taking into account any 

sequestration of amounts within that category), the discretionary spending limits for that category for the next fiscal 

year shall be reduced by the amount or amounts of that breach. 

‘‘(6) WITHIN-SESSION SEQUESTRATION.—If an appropriation 

for a fiscal year in progress is enacted (after Congress adjourns 

to end the session for that budget year and before July 1 

of that fiscal year) that causes a breach within a category 

for that year (after taking into account any prior sequestration 

of amounts within that category), 15 days later there shall 

be a sequestration to eliminate that breach within that category 

following the procedures set forth in paragraphs (2) through 

(4). 

‘‘(7) ESTIMATES.— 

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‘‘(A) CBO ESTIMATES.—As soon as practicable after 

Congress completes action on any discretionary appropriation, CBO, after consultation with the Committees on the 

Budget of the House of Representatives and the Senate, 

shall provide OMB with an estimate of the amount of 

discretionary new budget authority and outlays for the 

current year, if any, and the budget year provided by 

that legislation. 

‘‘(B) OMB ESTIMATES AND EXPLANATION OF DIFFERENCES.—Not later than 7 calendar days (excluding 

Saturdays, Sundays, and legal holidays) after the date 

of enactment of any discretionary appropriation, OMB shall 

transmit a report to the House of Representatives and 

to the Senate containing the CBO estimate of that legislation, an OMB estimate of the amount of discretionary new 

budget authority and outlays for the current year, if any, 

and the budget year provided by that legislation, and an 

explanation of any difference between the 2 estimates. 

If during the preparation of the report OMB determines 

that there is a significant difference between OMB and 

CBO, OMB shall consult with the Committees on the 

Budget of the House of Representatives and the Senate 

regarding that difference and that consultation shall 

include, to the extent practicable, written communication 

to those committees that affords such committees the opportunity to comment before the issuance of the report. 

‘‘(C) ASSUMPTIONS AND GUIDELINES.—OMB estimates 

under this paragraph shall be made using current economic 

and technical assumptions. OMB shall use the OMB estimates transmitted to the Congress under this paragraph. 

OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the Committees on the 

Budget of the House of Representatives and the Senate, 

CBO, and OMB. 

‘‘(D) ANNUAL APPROPRIATIONS.—For purposes of this 

paragraph, amounts provided by annual appropriations 

shall include any discretionary appropriations for the current year, if any, and the budget year in accounts for 

which funding is provided in that legislation that result 

from previously enacted legislation. 

‘‘(b) ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.— 

‘‘(1) CONCEPTS AND DEFINITIONS.—When the President submits the budget under section 1105 of title 31, United States 

Code, OMB shall calculate and the budget shall include adjustments to discretionary spending limits (and those limits as 

cumulatively adjusted) for the budget year and each outyear 

to reflect changes in concepts and definitions. Such changes 

shall equal the baseline levels of new budget authority and 

outlays using up-to-date concepts and definitions, minus those 

levels using the concepts and definitions in effect before such 

changes. Such changes may only be made after consultation 

with the Committees on Appropriations and the Budget of 

the House of Representatives and the Senate, and that consultation shall include written communication to such committees 

that affords such committees the opportunity to comment before 

official action is taken with respect to such changes. 

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‘‘(2) SEQUESTRATION REPORTS.—When OMB submits a 

sequestration report under section 254(e), (f), or (g) for a fiscal 

year, OMB shall calculate, and the sequestration report and 

subsequent budgets submitted by the President under section 

1105(a) of title 31, United States Code, shall include adjustments to discretionary spending limits (and those limits as 

adjusted) for the fiscal year and each succeeding year, as follows: 

‘‘(A) EMERGENCY APPROPRIATIONS; OVERSEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM.—If, for any 

fiscal year, appropriations for discretionary accounts are 

enacted that— 

‘‘(i) the Congress designates as emergency requirements in statute on an account by account basis and 

the President subsequently so designates, or 

‘‘(ii) the Congress designates for Overseas Contingency Operations/Global War on Terrorism in statute 

on an account by account basis and the President 

subsequently so designates, 

the adjustment shall be the total of such appropriations 

in discretionary accounts designated as emergency requirements or for Overseas Contingency Operations/Global War 

on Terrorism, as applicable. 

‘‘(B) CONTINUING DISABILITY REVIEWS AND REDETERMINATIONS.—(i) If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an 

amount for continuing disability reviews under titles II 

and XVI of the Social Security Act and for the cost associated with conducting redeterminations of eligibility under 

title XVI of the Social Security Act, then the adjustments 

for that fiscal year shall be the additional new budget 

authority provided in that Act for such expenses for that 

fiscal year, but shall not exceed— 

‘‘(I) for fiscal year 2012, $623,000,000 in additional 

new budget authority; 

‘‘(II) for fiscal year 2013, $751,000,000 in additional 

new budget authority; 

‘‘(III) for fiscal year 2014, $924,000,000 in additional new budget authority; 

‘‘(IV) for fiscal year 2015, $1,123,000,000 in additional new budget authority; 

‘‘(V) for fiscal year 2016, $1,166,000,000 in additional new budget authority; 

‘‘(VI) for fiscal year 2017, $1,309,000,000 in additional new budget authority; 

‘‘(VII) for fiscal year 2018, $1,309,000,000 in additional new budget authority; 

‘‘(VIII) for fiscal year 2019, $1,309,000,000 in additional new budget authority; 

‘‘(IX) for fiscal year 2020, $1,309,000,000 in additional new budget authority; and 

‘‘(X) for fiscal year 2021, $1,309,000,000 in additional new budget authority. 

‘‘(ii) As used in this subparagraph— 

‘‘(I) the term ‘continuing disability reviews’ means 

continuing disability reviews under sections 221(i) and 

1614(a)(4) of the Social Security Act; 

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‘‘(II) the term ‘redetermination’ means redetermination of eligibility under sections 1611(c)(1) and 

1614(a)(3)(H) of the Social Security Act; and 

‘‘(III) the term ‘additional new budget authority’ 

means the amount provided for a fiscal year, in excess 

of $273,000,000, in an appropriation Act and specified 

to pay for the costs of continuing disability reviews 

and redeterminations under the heading ‘Limitation 

on Administrative Expenses’ for the Social Security 

Administration. 

‘‘(C) HEALTH CARE FRAUD AND ABUSE CONTROL.—(i) 

If a bill or joint resolution making appropriations for a 

fiscal year is enacted that specifies an amount for the 

health care fraud abuse control program at the Department 

of Health and Human Services (75–8393–0–7–571), then 

the adjustments for that fiscal year shall be the amount 

of additional new budget authority provided in that Act 

for such program for that fiscal year, but shall not exceed— 

‘‘(I) for fiscal year 2012, $270,000,000 in additional 

new budget authority; 

‘‘(II) for fiscal year 2013, $299,000,000 in additional 

new budget authority; 

‘‘(III) for fiscal year 2014, $329,000,000 in additional new budget authority; 

‘‘(IV) for fiscal year 2015, $361,000,000 in additional new budget authority; 

‘‘(V) for fiscal year 2016, $395,000,000 in additional 

new budget authority; 

‘‘(VI) for fiscal year 2017, $414,000,000 in additional new budget authority; 

‘‘(VII) for fiscal year 2018, $434,000,000 in additional new budget authority; 

‘‘(VIII) for fiscal year 2019, $454,000,000 in additional new budget authority; 

‘‘(IX) for fiscal year 2020, $475,000,000 in additional new budget authority; and 

‘‘(X) for fiscal year 2021, $496,000,000 in additional 

new budget authority. 

‘‘(ii) As used in this subparagraph, the term ‘additional 

new budget authority’ means the amount provided for a 

fiscal year, in excess of $311,000,000, in an appropriation 

Act and specified to pay for the costs of the health care 

fraud and abuse control program. 

‘‘(D) DISASTER FUNDING.— 

‘‘(i) If, for fiscal years 2012 through 2021, appropriations for discretionary accounts are enacted that 

Congress designates as being for disaster relief in 

statute, the adjustment for a fiscal year shall be the 

total of such appropriations for the fiscal year in discretionary accounts designated as being for disaster relief, 

but not to exceed the total of— 

‘‘(I) the average funding provided for disaster 

relief over the previous 10 years, excluding the 

highest and lowest years; and 

‘‘(II) the amount, for years when the enacted 

new discretionary budget authority designated as 

being for disaster relief for the preceding fiscal 

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year was less than the average as calculated in 

subclause (I) for that fiscal year, that is the difference between the enacted amount and the allowable adjustment as calculated in such subclause 

for that fiscal year. 

‘‘(ii) OMB shall report to the Committees on Appropriations and Budget in each House the average calculated pursuant to clause (i)(II), not later than 30 

days after the date of the enactment of the Budget 

Control Act of 2011. 

‘‘(iii) For the purposes of this subparagraph, the 

term ‘disaster relief’ means activities carried out pursuant to a determination under section 102(2) of the 

Robert T. Stafford Disaster Relief and Emergency 

Assistance Act (42 U.S.C. 5122(2)). 

‘‘(iv) Appropriations considered disaster relief 

under this subparagraph in a fiscal year shall not 

be eligible for adjustments under subparagraph (A) 

for the fiscal year. 

‘‘(c) DISCRETIONARY SPENDING LIMIT.—As used in this part, 

the term ‘discretionary spending limit’ means— 

‘‘(1) with respect to fiscal year 2012— 

‘‘(A) for the security category, $684,000,000,000 in new 

budget authority; and 

‘‘(B) for the nonsecurity category, $359,000,000,000 in 

new budget authority; 

‘‘(2) with respect to fiscal year 2013— 

‘‘(A) for the security category, $686,000,000,000 in new 

budget authority; and 

‘‘(B) for the nonsecurity category, $361,000,000,000 in 

new budget authority; 

‘‘(3) with respect to fiscal year 2014, for the discretionary 

category, $1,066,000,000,000 in new budget authority; 

‘‘(4) with respect to fiscal year 2015, for the discretionary 

category, $1,086,000,000,000 in new budget authority; 

‘‘(5) with respect to fiscal year 2016, for the discretionary 

category, $1,107,000,000,000 in new budget authority; 

‘‘(6) with respect to fiscal year 2017, for the discretionary 

category, $1,131,000,000,000 in new budget authority; 

‘‘(7) with respect to fiscal year 2018, for the discretionary 

category, $1,156,000,000,000 in new budget authority; 

‘‘(8) with respect to fiscal year 2019, for the discretionary 

category, $1,182,000,000,000 in new budget authority; 

‘‘(9) with respect to fiscal year 2020, for the discretionary 

category, $1,208,000,000,000 in new budget authority; and 

‘‘(10) with respect to fiscal year 2021, for the discretionary 

category, $1,234,000,000,000 in new budget authority; 

as adjusted in strict conformance with subsection (b).’’. 

SEC. 102. DEFINITIONS. 

Section 250(c) of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended as follows: 

(1) Strike paragraph (4) and insert the following new paragraph: 

‘‘(4)(A) The term ‘nonsecurity category’ means all discretionary appropriations not included in the security category 

defined in subparagraph (B). 

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‘‘(B) The term ‘security category’ includes discretionary 

appropriations associated with agency budgets for the Department of Defense, the Department of Homeland Security, the 

Department of Veterans Affairs, the National Nuclear Security 

Administration, the intelligence community management 

account (95–0401–0–1–054), and all budget accounts in budget 

function 150 (international affairs). 

‘‘(C) The term ‘discretionary category’ includes all discretionary appropriations.’’. 

(2) In paragraph (8)(C), strike ‘‘the food stamp program’’ 

and insert ‘‘the Supplemental Nutrition Assistance Program’’. 

(3) Strike paragraph (14) and insert the following new 

paragraph: 

‘‘(14) The term ‘outyear’ means a fiscal year one or more 

years after the budget year.’’. 

(4) At the end, add the following new paragraphs: 

‘‘(20) The term ‘emergency’ means a situation that— 

‘‘(A) requires new budget authority and outlays (or 

new budget authority and the outlays flowing therefrom) 

for the prevention or mitigation of, or response to, loss 

of life or property, or a threat to national security; and 

‘‘(B) is unanticipated. 

‘‘(21) The term ‘unanticipated’ means that the underlying 

situation is— 

‘‘(A) sudden, which means quickly coming into being 

or not building up over time; 

‘‘(B) urgent, which means a pressing and compelling 

need requiring immediate action; 

‘‘(C) unforeseen, which means not predicted or anticipated as an emerging need; and 

‘‘(D) temporary, which means not of a permanent duration.’’. 

SEC. 103. REPORTS AND ORDERS. 

Section 254 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended as follows: 

(1) In subsection (c)(2), strike ‘‘2002’’ and insert ‘‘2021’’. 

(2) At the end of subsection (e), insert ‘‘This report shall 

also contain a preview estimate of the adjustment for disaster 

funding for the upcoming fiscal year.’’. 

(3) In subsection (f)(2)(A), strike ‘‘2002’’ and insert ‘‘2021’’; 

before the concluding period insert ‘‘, including a final estimate 

of the adjustment for disaster funding’’. 

SEC. 104. EXPIRATION. 

(a) REPEALER.—Section 275 of the Balanced Budget and Emergency Deficit Control Act of 1985 is repealed. 

(b) CONFORMING CHANGE.—Sections 252(d)(1), 254(c), 254(f)(3), 

and 254(i) of the Balanced Budget and Emergency Deficit Control 

Act of 1985 shall not apply to the Congressional Budget Office. 

SEC. 105. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND 

IMPOUNDMENT CONTROL ACT OF 1974. 

(a) ADJUSTMENTS.—Section 314 of the Congressional Budget 

Act of 1974 is amended as follows: 

(1) Strike subsection (a) and insert the following: 

‘‘(a) ADJUSTMENTS.—After the reporting of a bill or joint resolution or the offering of an amendment thereto or the submission 

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of a conference report thereon, the chairman of the Committee 

on the Budget of the House of Representatives or the Senate may 

make appropriate budgetary adjustments of new budget authority 

and the outlays flowing therefrom in the same amount as required 

by section 251(b) of the Balanced Budget and Emergency Deficit 

Control Act of 1985.’’. 

(2) Strike subsections (b) and (e) and redesignate subsections (c) and (d) as subsections (b) and (c), respectively. 

(3) At the end, add the following new subsections: 

‘‘(d) EMERGENCIES IN THE HOUSE OF REPRESENTATIVES.— (1) 

In the House of Representatives, if a reported bill or joint resolution, 

or amendment thereto or conference report thereon, contains a 

provision providing new budget authority and outlays or reducing 

revenue, and a designation of such provision as an emergency 

requirement pursuant to 251(b)(2)(A) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, the chair of the Committee 

on the Budget of the House of Representatives shall not count 

the budgetary effects of such provision for purposes of title III 

and title IV of the Congressional Budget Act of 1974 and the 

Rules of the House of Representatives. 

‘‘(2)(A) In the House of Representatives, if a reported bill or 

joint resolution, or amendment thereto or conference report thereon, 

contains a provision providing new budget authority and outlays 

or reducing revenue, and a designation of such provision as an 

emergency pursuant to paragraph (1), the chair of the Committee 

on the Budget shall not count the budgetary effects of such provision 

for purposes of this title and title IV and the Rules of the House 

of Representatives. 

‘‘(B) In the House of Representatives, a proposal to strike 

a designation under subparagraph (A) shall be excluded from an 

evaluation of budgetary effects for purposes of this title and title 

IV and the Rules of the House of Representatives. 

‘‘(C) An amendment offered under subparagraph (B) that also 

proposes to reduce each amount appropriated or otherwise made 

available by the pending measure that is not required to be appropriated or otherwise made available shall be in order at any point 

in the reading of the pending measure. 

‘‘(e) ENFORCEMENT OF DISCRETIONARY SPENDING CAPS.—It shall 

not be in order in the House of Representatives or the Senate 

to consider any bill, joint resolution, amendment, motion, or conference report that would cause the discretionary spending limits 

as set forth in section 251 of the Balanced Budget and Emergency 

Deficit Control Act to be exceeded.’’. 

(b) DEFINITIONS.—Section 3 of the Congressional Budget and 

Impoundment Control Act of 1974 is amended by adding at the 

end the following new paragraph: 

‘‘(11) The terms ‘emergency’ and ‘unanticipated’ have the 

meanings given to such terms in section 250(c) of the Balanced 

Budget and Emergency Deficit Control Act of 1985.’’. 

(c) APPEALS FOR DISCRETIONARY CAPS.—Section 904(c)(2) of 

the Congressional Budget Act of 1974 is amended by striking ‘‘and 

312(c)’’ and inserting ‘‘312(c), and 314(e)’’. 

SEC. 106. SENATE BUDGET ENFORCEMENT. 

(a) IN GENERAL.— 

(1) For the purpose of enforcing the Congressional Budget 

Act of 1974 through April 15, 2012, including section 300 of 

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that Act, and enforcing budgetary points of order in prior 

concurrent resolutions on the budget, the allocations, aggregates, and levels set in subsection (b)(1) shall apply in the 

Senate in the same manner as for a concurrent resolution 

on the budget for fiscal year 2012 with appropriate budgetary 

levels for fiscal years 2011 and 2013 through 2021. 

(2) For the purpose of enforcing the Congressional Budget 

Act of 1974 after April 15, 2012, including section 300 of that 

Act, and enforcing budgetary points of order in prior concurrent 

resolutions on the budget, the allocations, aggregates, and levels 

set in subsection (b)(2) shall apply in the Senate in the same 

manner as for a concurrent resolution on the budget for fiscal 

year 2013 with appropriate budgetary levels for fiscal years 

2012 and 2014 through 2022. 

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.— 

(1) As soon as practicable after the date of enactment 

of this section, the Chairman of the Committee on the Budget 

shall file— 

(A) for the Committee on Appropriations, committee 

allocations for fiscal years 2011 and 2012 consistent with 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 2011, 

2012, 2012 through 2016, and 2012 through 2021 consistent 

with the Congressional Budget Office’s March 2011 baseline 

adjusted to account for the budgetary effects of this Act 

and legislation enacted prior to this Act but not included 

in the Congressional Budget Office’s March 2011 baseline, 

for the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(C) aggregate spending levels for fiscal years 2011 

and 2012 and aggregate revenue levels for fiscal years 

2011, 2012, 2012 through 2016, 2012 through 2021 consistent with the Congressional Budget Office’s March 2011 

baseline adjusted to account for the budgetary effects of 

this Act and legislation enacted prior to this Act but not 

included in the Congressional Budget Office’s March 2011 

baseline, and the discretionary spending limits set forth 

in this Act for the purpose of enforcing section 311 of 

the Congressional Budget Act of 1974; and 

(D) levels of Social Security revenues and outlays for 

fiscal years 2011, 2012, 2012 through 2016, and 2012 

through 2021 consistent with the Congressional Budget 

Office’s March 2011 baseline adjusted to account for the 

budgetary effects of this Act and legislation enacted prior 

to this Act but not included in the Congressional Budget 

Office’s March 2011 baseline, for the purpose of enforcing 

sections 302 and 311 of the Congressional Budget Act of 

1974. 

(2) Not later than April 15, 2012, the Chairman of the 

Committee on the Budget shall file— 

(A) for the Committee on Appropriations, committee 

allocations for fiscal years 2012 and 2013 consistent with 

the discretionary spending limits set forth in this Act for 

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the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(B) for all committees other than the Committee on 

Appropriations, committee allocations for fiscal years 2012, 

2013, 2013 through 2017, and 2013 through 2022 consistent 

with the Congressional Budget Office’s March 2012 baseline 

for the purpose of enforcing section 302 of the Congressional 

Budget Act of 1974; 

(C) aggregate spending levels for fiscal years 2012 

and 2013 and aggregate revenue levels for fiscal years 

2012, 2013, 2013–2017, and 2013–2022 consistent with the 

Congressional Budget Office’s March 2012 baseline and 

the discretionary spending limits set forth in this Act for 

the purpose of enforcing section 311 of the Congressional 

Budget Act of 1974; and 

(D) levels of Social Security revenues and outlays for 

fiscal years 2012 and 2013, 2013–2017, and 2013–2022 

consistent with the Congressional Budget Office’s March 

2012 baseline budget for the purpose of enforcing sections 

302 and 311 of the Congressional Budget Act of 1974. 

(c) SENATE PAY-AS-YOU-GO SCORECARD.— 

(1) Effective on the date of enactment of this section, for 

the purpose of enforcing section 201 of S. Con. Res. 21 (110th 

Congress), the Chairman of the Senate Committee on the 

Budget shall reduce any balances of direct spending and revenues for any fiscal year to 0 (zero). 

(2) Not later than April 15, 2012, for the purpose of 

enforcing section 201 of S. Con. Res. 21 (110th Congress), 

the Chairman of the Senate Committee on the Budget shall 

reduce any balances of direct spending and revenues for any 

fiscal year to 0 (zero). 

(3) Upon resetting the Senate paygo scorecard pursuant 

to paragraph (2), the Chairman shall publish a notification 

of such action in the Congressional Record. 

(d) FURTHER ADJUSTMENTS.— 

(1) The Chairman of the Committee on the Budget of 

the Senate may revise any allocations, aggregates, or levels 

set pursuant to this section to account for any subsequent 

adjustments to discretionary spending limits made pursuant 

to this Act. 

(2) With respect to any allocations, aggregates, or levels 

set or adjustments made pursuant to this section, sections 

412 through 414 of S. Con. Res. 13 (111th Congress) shall 

remain in effect. 

(e) EXPIRATION.— 

(1) Subsections (a)(1), (b)(1), and (c)(1) shall expire if a 

concurrent resolution on the budget for fiscal year 2012 is 

agreed to by the Senate and House of Representatives pursuant 

to section 301 of the Congressional Budget Act of 1974. 

(2) Subsections (a)(2), (b)(2), and (c)(2) shall expire if a 

concurrent resolution on the budget for fiscal year 2013 is 

agreed to by the Senate and House of Representatives pursuant 

to section 301 of the Congressional Budget Act of 1974. 

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TITLE II—VOTE ON THE BALANCED 

BUDGET AMENDMENT 

SEC. 201. VOTE ON THE BALANCED BUDGET AMENDMENT. 

After September 30, 2011, and not later than December 31, 

2011, the House of Representatives and Senate, respectively, shall 

vote on passage of a joint resolution, the title of which is as 

follows: ‘‘Joint resolution proposing a balanced budget amendment 

to the Constitution of the United States.’’. 

SEC. 202. CONSIDERATION BY THE OTHER HOUSE. 

(a) HOUSE CONSIDERATION.— (1) REFERRAL.—If the House receives a joint resolution 

described in section 201 from the Senate, such joint resolution 

shall be referred to the Committee on the Judiciary. If the 

committee fails to report the joint resolution within five legislative days, it shall be in order to move that the House discharge 

the committee from further consideration of the joint resolution. 

Such a motion shall not be in order after the House has disposed 

of a motion to discharge the joint resolution. The previous 

question shall be considered as ordered on the motion to its 

adoption without intervening motion except twenty minutes 

of debate equally divided and controlled by the proponent and 

an opponent. If such a motion is adopted, the House shall 

proceed immediately to consider the joint resolution in accordance with paragraph (3). A motion to reconsider the vote by 

which the motion is disposed of shall not be in order. 

(2) PROCEEDING TO CONSIDERATION.—After the joint resolution has been referred to the appropriate calendar or the committee has been discharged (other than by motion) from its 

consideration, it shall be in order to move to proceed to consider 

the joint resolution in the House. Such a motion shall not 

be in order after the House has disposed of a motion to proceed 

with respect to the joint resolution. The previous question shall 

be considered as ordered on the motion to its adoption without 

intervening motion. A motion to reconsider the vote by which 

the motion is disposed of shall not be in order. 

(3) CONSIDERATION.—The joint resolution shall be considered as read. All points of order against the joint resolution 

and against its consideration are waived. The previous question 

shall be considered as ordered on the joint resolution to its 

passage without intervening motion except two hours of debate 

equally divided and controlled by the proponent and an opponent and one motion to limit debate on the joint resolution. 

A motion to reconsider the vote on passage of the joint resolution shall not be in order. 

(b) SENATE CONSIDERATION.—(1) If the Senate receives a joint 

resolution described in section 201 from the House of Representatives, such joint resolution shall be referred to the appropriate 

committee of the Senate. If such committee has not reported the 

joint resolution at the close of the fifth session day after its receipt 

by the Senate, such committee shall be automatically discharged 

from further consideration of the joint resolution and it shall be 

placed on the appropriate calendar. 

(2) Consideration of the joint resolution and on all debatable 

motions and appeals in connection therewith, shall be limited to 

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not more than 20 hours, which shall be divided equally between 

the majority and minority leaders or their designees. A motion 

further to limit debate is in order and not debatable. An amendment 

to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution 

is not in order. Any debatable motion or appeal is debatable for 

not to exceed 1 hour, to be divided equally between those favoring 

and those opposing the motion or appeal. All time used for consideration of the joint resolution, including time used for quorum calls 

and voting, shall be counted against the total 20 hours of consideration. 

(3) If the Senate has voted to proceed to a joint resolution, 

the vote on passage of the joint resolution shall be taken on or 

before the close of the seventh session day after such joint resolution 

has been reported or discharged or immediately following the 

conclusion of consideration of the joint resolution, and a single 

quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate. 

TITLE III—DEBT CEILING DISAPPROVAL 

PROCESS 

SEC. 301. DEBT CEILING DISAPPROVAL PROCESS. 

(a) IN GENERAL.—Subchapter I of chapter 31 of subtitle III 

of title 31, United States Code, is amended— 

(1) in section 3101(b), by striking ‘‘or otherwise’’ and 

inserting ‘‘or as provided by section 3101A or otherwise’’; and 

(2) by inserting after section 3101 the following: 

‘‘§ 3101A. Presidential modification of the debt ceiling 

‘‘(a) IN GENERAL.— ‘‘(1) $900 BILLION.— ‘‘(A) CERTIFICATION.—If, not later than December 31, 

2011, the President submits a written certification to Congress that the President has determined that the debt 

subject to limit is within $100,000,000,000 of the limit 

in section 3101(b) and that further borrowing is required 

to meet existing commitments, the Secretary of the 

Treasury may exercise authority to borrow an additional 

$900,000,000,000, subject to the enactment of a joint resolution of disapproval enacted pursuant to this section. Upon 

submission of such certification, the limit on debt provided 

in section 3101(b) (referred to in this section as the ‘debt 

limit’) is increased by $400,000,000,000. 

‘‘(B) RESOLUTION OF DISAPPROVAL.—Congress may consider a joint resolution of disapproval of the authority 

under subparagraph (A) as provided in subsections (b) 

through (f). The joint resolution of disapproval considered 

under this section shall contain only the language provided 

in subsection (b)(2). If the time for disapproval has lapsed 

without enactment of a joint resolution of disapproval under 

this section, the debt limit is increased by an additional 

$500,000,000,000. 

‘‘(2) ADDITIONAL AMOUNT.— 

‘‘(A) CERTIFICATION.—If, after the debt limit is 

increased by $900,000,000,000 under paragraph (1), the 

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President submits a written certification to Congress that 

the President has determined that the debt subject to limit 

is within $100,000,000,000 of the limit in section 3101(b) 

and that further borrowing is required to meet existing 

commitments, the Secretary of the Treasury may, subject 

to the enactment of a joint resolution of disapproval enacted 

pursuant to this section, exercise authority to borrow an 

additional amount equal to— 

‘‘(i) $1,200,000,000,000, unless clause (ii) or (iii) 

applies; 

‘‘(ii) $1,500,000,000,000 if the Archivist of the 

United States has submitted to the States for their 

ratification a proposed amendment to the Constitution 

of the United States pursuant to a joint resolution 

entitled ‘Joint resolution proposing a balanced budget 

amendment to the Constitution of the United States’; 

or 

‘‘(iii) if a joint committee bill to achieve an amount 

greater than $1,200,000,000,000 in deficit reduction 

as provided in section 401(b)(3)(B)(i)(II) of the Budget 

Control Act of 2011 is enacted, an amount equal to 

the amount of that deficit reduction, but not greater 

than $1,500,000,000,000, unless clause (ii) applies. 

‘‘(B) RESOLUTION OF DISAPPROVAL.—Congress may consider a joint resolution of disapproval of the authority 

under subparagraph (A) as provided in subsections (b) 

through (f). The joint resolution of disapproval considered 

under this section shall contain only the language provided 

in subsection (b)(2). If the time for disapproval has lapsed 

without enactment of a joint resolution of disapproval under 

this section, the debt limit is increased by the amount 

authorized under subparagraph (A). 

‘‘(b) JOINT RESOLUTION OF DISAPPROVAL.— 

‘‘(1) IN GENERAL.—Except for the $400,000,000,000 increase 

in the debt limit provided by subsection (a)(1)(A), the debt 

limit may not be raised under this section if, within 50 calendar 

days after the date on which Congress receives a certification 

described in subsection (a)(1) or within 15 calendar days after 

Congress receives the certification described in subsection (a)(2) 

(regardless of whether Congress is in session), there is enacted 

into law a joint resolution disapproving the President’s exercise 

of authority with respect to such additional amount. 

‘‘(2) CONTENTS OF JOINT RESOLUTION.—For the purpose of 

this section, the term ‘joint resolution’ means only a joint resolution— 

‘‘(A)(i) for the certification described in subsection 

(a)(1), that is introduced on September 6, 7, 8, or 9, 2011 

(or, if the Senate was not in session, the next calendar 

day on which the Senate is in session); and 

‘‘(ii) for the certification described in subsection (a)(2), 

that is introduced between the date the certification is 

received and 3 calendar days after that date; 

‘‘(B) which does not have a preamble; 

‘‘(C) the title of which is only as follows: ‘Joint resolution relating to the disapproval of the President’s exercise 

of authority to increase the debt limit, as submitted under 

section 3101A of title 31, United States Code, on 

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llllll’ (with the blank containing the date of such 

submission); and 

‘‘(D) the matter after the resolving clause of which 

is only as follows: ‘That Congress disapproves of the President’s exercise of authority to increase the debt limit, as 

exercised pursuant to the certification under section 

3101A(a) of title 31, United States Code.’. 

‘‘(c) EXPEDITED CONSIDERATION IN HOUSE OF REPRESENTATIVES.— 

‘‘(1) RECONVENING.—Upon receipt of a certification 

described in subsection (a)(2), the Speaker, if the House would 

otherwise be adjourned, shall notify the Members of the House 

that, pursuant to this section, the House shall convene not 

later than the second calendar day after receipt of such certification. 

‘‘(2) REPORTING AND DISCHARGE.—Any committee of the 

House of Representatives to which a joint resolution is referred 

shall report it to the House without amendment not later 

than 5 calendar days after the date of introduction of a joint 

resolution described in subsection (a). If a committee fails to 

report the joint resolution within that period, the committee 

shall be discharged from further consideration of the joint resolution and the joint resolution shall be referred to the appropriate calendar. 

‘‘(3) PROCEEDING TO CONSIDERATION.—After each committee 

authorized to consider a joint resolution reports it to the House 

or has been discharged from its consideration, it shall be in 

order, not later than the sixth day after introduction of a 

joint resolution under subsection (a), to move to proceed to 

consider the joint resolution in the House. All points of order 

against the motion are waived. Such a motion shall not be 

in order after the House has disposed of a motion to proceed 

on a joint resolution addressing a particular submission. The 

previous question shall be considered as ordered on the motion 

to its adoption without intervening motion. The motion shall 

not be debatable. A motion to reconsider the vote by which 

the motion is disposed of shall not be in order. 

‘‘(4) CONSIDERATION.—The joint resolution shall be considered as read. All points of order against the joint resolution 

and against its consideration are waived. The previous question 

shall be considered as ordered on the joint resolution to its 

passage without intervening motion except two hours of debate 

equally divided and controlled by the proponent and an opponent. A motion to reconsider the vote on passage of the joint 

resolution shall not be in order. 

‘‘(d) EXPEDITED PROCEDURE IN SENATE.— 

‘‘(1) RECONVENING.—Upon receipt of a certification under 

subsection (a)(2), if the Senate has adjourned or recessed for 

more than 2 days, the majority leader of the Senate, after 

consultation with the minority leader of the Senate, shall notify 

the Members of the Senate that, pursuant to this section, 

the Senate shall convene not later than the second calendar 

day after receipt of such message. 

‘‘(2) PLACEMENT ON CALENDAR.—Upon introduction in the 

Senate, the joint resolution shall be immediately placed on 

the calendar. 

‘‘(3) FLOOR CONSIDERATION.— 

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‘‘(A) IN GENERAL.—Notwithstanding Rule XXII of the 

Standing Rules of the Senate, it is in order at any time 

during the period beginning on the day after the date 

on which Congress receives a certification under subsection 

(a) and, for the certification described in subsection (a)(1), 

ending on September 14, 2011, and for the certification 

described in subsection (a)(2), on the 6th day after the 

date on which Congress receives a certification under subsection (a) (even though a previous motion to the same 

effect has been disagreed to) to move to proceed to the 

consideration of the joint resolution, and all points of order 

against the joint resolution (and against consideration of 

the joint resolution) are waived. The motion to proceed 

is not debatable. The motion is not subject to a motion 

to postpone. A motion to reconsider the vote by which 

the motion is agreed to or disagreed to shall not be in 

order. If a motion to proceed to the consideration of the 

resolution is agreed to, the joint resolution shall remain 

the unfinished business until disposed of. 

‘‘(B) CONSIDERATION.—Consideration of the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, 

which shall be divided equally between the majority and 

minority leaders or their designees. A motion further to 

limit debate is in order and not debatable. An amendment 

to, or a motion to postpone, or a motion to proceed to 

the consideration of other business, or a motion to recommit 

the joint resolution is not in order. 

‘‘(C) VOTE ON PASSAGE.—If the Senate has voted to 

proceed to a joint resolution, the vote on passage of the 

joint resolution shall occur immediately following the 

conclusion of consideration of the joint resolution, and a 

single quorum call at the conclusion of the debate if 

requested in accordance with the rules of the Senate. 

‘‘(D) RULINGS OF THE CHAIR ON PROCEDURE.—Appeals 

from the decisions of the Chair relating to the application 

of the rules of the Senate, as the case may be, to the 

procedure relating to a joint resolution shall be decided 

without debate. 

‘‘(e) AMENDMENT NOT IN ORDER.—A joint resolution of disapproval considered pursuant to this section shall not be subject 

to amendment in either the House of Representatives or the Senate. 

‘‘(f) COORDINATION WITH ACTION BY OTHER HOUSE.— 

‘‘(1) IN GENERAL.—If, before passing the joint resolution, 

one House receives from the other a joint resolution— 

‘‘(A) the joint resolution of the other House shall not 

be referred to a committee; and 

‘‘(B) the procedure in the receiving House shall be 

the same as if no joint resolution had been received from 

the other House until the vote on passage, when the joint 

resolution received from the other House shall supplant 

the joint resolution of the receiving House. 

‘‘(2) TREATMENT OF JOINT RESOLUTION OF OTHER HOUSE.— 

If the Senate fails to introduce or consider a joint resolution 

under this section, the joint resolution of the House shall be 

entitled to expedited floor procedures under this section. 

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‘‘(3) TREATMENT OF COMPANION MEASURES.—If, following 

passage of the joint resolution in the Senate, the Senate then 

receives the companion measure from the House of Representatives, the companion measure shall not be debatable. 

‘‘(4) CONSIDERATION AFTER PASSAGE.—(A) If Congress 

passes a joint resolution, the period beginning on the date 

the President is presented with the joint resolution and ending 

on the date the President signs, allows to become law without 

his signature, or vetoes and returns the joint resolution (but 

excluding days when either House is not in session) shall be 

disregarded in computing the appropriate calendar day period 

described in subsection (b)(1). 

‘‘(B) Debate on a veto message in the Senate under this 

section shall be 1 hour equally divided between the majority 

and minority leaders or their designees. 

‘‘(5) VETO OVERRIDE.—If within the appropriate calendar 

day period described in subsection (b)(1), Congress overrides 

a veto of the joint resolution with respect to authority exercised 

pursuant to paragraph (1) or (2) of subsection (a), the limit 

on debt provided in section 3101(b) shall not be raised, except 

for the $400,000,000,000 increase in the limit provided by subsection (a)(1)(A). 

‘‘(6) SEQUESTRATION.—(A) If within the 50-calendar day 

period described in subsection (b)(1), the President signs the 

joint resolution, the President allows the joint resolution to 

become law without his signature, or Congress overrides a 

veto of the joint resolution with respect to authority exercised 

pursuant to paragraph (1) of subsection (a), there shall be 

a sequestration to reduce spending by $400,000,000,000. OMB 

shall implement the sequestration forthwith. 

‘‘(B) OMB shall implement each half of such sequestration 

in accordance with section 255, section 256, and subsections 

(c), (d), (e), and (f) of section 253 of the Balanced Budget 

and Emergency Deficit Control Act of 1985, and for the purpose 

of such implementation the term ‘excess deficit’ means the 

amount specified in subparagraph (A). 

‘‘(g) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.—This 

subsection and subsections (b), (c), (d), (e), and (f) (other than 

paragraph (6)) are enacted by Congress— 

‘‘(1) as an exercise of the rulemaking power of the Senate 

and House of Representatives, respectively, and as such it 

is deemed a part of the rules of each House, respectively, 

but applicable only with respect to the procedure to be followed 

in that House in the case of a joint resolution, and it supersedes 

other rules only to the extent that it is inconsistent with such 

rules; and 

‘‘(2) with full recognition of the constitutional right of either 

House to change the rules (so far as relating to the procedure 

of that House) at any time, in the same manner, and to the 

same extent as in the case of any other rule of that House.’’. 

(b) CONFORMING AMENDMENT.—The table of sections for chapter 

31 of title 31, United States Code, is amended by inserting after 

the item relating to section 3101 the following new item: 

‘‘3101A. Presidential modification of the debt ceiling.’’. 

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SEC. 302. ENFORCEMENT OF BUDGET GOAL. 

(a) IN GENERAL.—The Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended by inserting after section 251 

the following new section: 

‘‘SEC. 251A. ENFORCEMENT OF BUDGET GOAL. 

‘‘Unless a joint committee bill achieving an amount greater 

than $1,200,000,000,000 in deficit reduction as provided in section 

401(b)(3)(B)(i)(II) of the Budget Control Act of 2011 is enacted 

by January 15, 2012, the discretionary spending limits listed in 

section 251(c) shall be revised, and discretionary appropriations 

and direct spending shall be reduced, as follows: 

‘‘(1) REVISED SECURITY CATEGORY; REVISED NONSECURITY

CATEGORY.—(A) The term ‘revised security category’ means 

discretionary appropriations in budget function 050. 

‘‘(B) The term ‘revised nonsecurity category’ means discretionary appropriations other than in budget function 050. 

‘‘(2) REVISED DISCRETIONARY SPENDING LIMITS.—The discretionary spending limits for fiscal years 2013 through 2021 

under section 251(c) shall be replaced with the following: 

‘‘(A) For fiscal year 2013— 

‘‘(i) for the security category, $546,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $501,000,000,000 

in budget authority. 

‘‘(B) For fiscal year 2014— 

‘‘(i) for the security category, $556,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $510,000,000,000 

in budget authority. 

‘‘(C) For fiscal year 2015— 

‘‘(i) for the security category, $566,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $520,000,000,000 

in budget authority. 

‘‘(D) For fiscal year 2016— 

‘‘(i) for the security category, $577,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $530,000,000,000 

in budget authority. 

‘‘(E) For fiscal year 2017— 

‘‘(i) for the security category, $590,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $541,000,000,000 

in budget authority. 

‘‘(F) For fiscal year 2018— 

‘‘(i) for the security category, $603,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $553,000,000,000 

in budget authority. 

‘‘(G) For fiscal year 2019— 

‘‘(i) for the security category, $616,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $566,000,000,000 

in budget authority. 

‘‘(H) For fiscal year 2020— 

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‘‘(i) for the security category, $630,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $578,000,000,000 

in budget authority. 

‘‘(I) For fiscal year 2021— 

‘‘(i) for the security category, $644,000,000,000 in 

budget authority; and 

‘‘(ii) for the nonsecurity category, $590,000,000,000 

in budget authority. 

‘‘(3) CALCULATION OF TOTAL DEFICIT REDUCTION.—OMB 

shall calculate the amount of the deficit reduction required 

by this section for each of fiscal years 2013 through 2021 

by— 

‘‘(A) starting with $1,200,000,000,000; 

‘‘(B) subtracting the amount of deficit reduction 

achieved by the enactment of a joint committee bill, as 

provided in section 401(b)(3)(B)(i)(II) of the Budget Control 

Act of 2011; 

‘‘(C) reducing the difference by 18 percent to account 

for debt service; and 

‘‘(D) dividing the result by 9. 

‘‘(4) ALLOCATION TO FUNCTIONS.—On January 2, 2013, for 

fiscal year 2013, and in its sequestration preview report for 

fiscal years 2014 through 2021 pursuant to section 254(c), OMB 

shall allocate half of the total reduction calculated pursuant 

to paragraph (3) for that year to discretionary appropriations 

and direct spending accounts within function 050 (defense function) and half to accounts in all other functions (nondefense 

functions). 

‘‘(5) DEFENSE FUNCTION REDUCTION.—OMB shall calculate 

the reductions to discretionary appropriations and direct 

spending for each of fiscal years 2013 through 2021 for defense 

function spending as follows: 

‘‘(A) DISCRETIONARY.—OMB shall calculate the reduction to discretionary appropriations by— 

‘‘(i) taking the total reduction for the defense function allocated for that year under paragraph (4); 

‘‘(ii) multiplying by the discretionary spending 

limit for the revised security category for that year; 

and 

‘‘(iii) dividing by the sum of the discretionary 

spending limit for the security category and OMB’s 

baseline estimate of nonexempt outlays for direct 

spending programs within the defense function for that 

year. 

‘‘(B) DIRECT SPENDING.—OMB shall calculate the 

reduction to direct spending by taking the total reduction 

for the defense function required for that year under paragraph (4) and subtracting the discretionary reduction calculated pursuant to subparagraph (A). 

‘‘(6) NONDEFENSE FUNCTION REDUCTION.—OMB shall calculate the reduction to discretionary appropriations and to 

direct spending for each of fiscal years 2013 through 2021 

for programs in nondefense functions as follows: 

‘‘(A) DISCRETIONARY.—OMB shall calculate the reduction to discretionary appropriations by— 

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‘‘(i) taking the total reduction for nondefense functions allocated for that year under paragraph (4); 

‘‘(ii) multiplying by the discretionary spending 

limit for the revised nonsecurity category for that year; 

and 

‘‘(iii) dividing by the sum of the discretionary 

spending limit for the revised nonsecurity category 

and OMB’s baseline estimate of nonexempt outlays 

for direct spending programs in nondefense functions 

for that year. 

‘‘(B) DIRECT SPENDING.—OMB shall calculate the 

reduction to direct spending programs by taking the total 

reduction for nondefense functions required for that year 

under paragraph (4) and subtracting the discretionary 

reduction calculated pursuant to subparagraph (A). 

‘‘(7) IMPLEMENTING DISCRETIONARY REDUCTIONS.— 

‘‘(A) FISCAL YEAR 2013.—On January 2, 2013, for fiscal 

year 2013, OMB shall calculate and the President shall 

order a sequestration, effective upon issuance and under 

the procedures set forth in section 253(f), to reduce each 

account within the security category or nonsecurity category by a dollar amount calculated by multiplying the 

baseline level of budgetary resources in that account at 

that time by a uniform percentage necessary to achieve— 

‘‘(i) for the revised security category, an amount 

equal to the defense function discretionary reduction 

calculated pursuant to paragraph (5); and 

‘‘(ii) for the revised nonsecurity category, an 

amount equal to the nondefense function discretionary 

reduction calculated pursuant to paragraph (6). 

‘‘(B) FISCAL YEARS 2014–2021.—On the date of the 

submission of its sequestration preview report for fiscal 

years 2014 through 2021 pursuant to section 254(c) for 

each of fiscal years 2014 through 2021, OMB shall reduce 

the discretionary spending limit— 

‘‘(i) for the revised security category by the amount 

of the defense function discretionary reduction calculated pursuant to paragraph (5); and 

‘‘(ii) for the revised nonsecurity category by the 

amount of the nondefense function discretionary reduction calculated pursuant to paragraph (6). 

‘‘(8) IMPLEMENTING DIRECT SPENDING REDUCTIONS.—On the 

date specified in paragraph (4) during each applicable year, 

OMB shall prepare and the President shall order a sequestration, effective upon issuance, of nonexempt direct spending 

to achieve the direct spending reduction calculated pursuant 

to paragraphs (5) and (6). When implementing the sequestration 

of direct spending pursuant to this paragraph, OMB shall follow 

the procedures specified in section 6 of the Statutory PayAs-You-Go Act of 2010, the exemptions specified in section 

255, and the special rules specified in section 256, except that 

the percentage reduction for the Medicare programs specified 

in section 256(d) shall not be more than 2 percent for a fiscal 

year. 

‘‘(9) ADJUSTMENT FOR MEDICARE.—If the percentage reduction for the Medicare programs would exceed 2 percent for 

a fiscal year in the absence of paragraph (8), OMB shall 

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increase the reduction for all other discretionary appropriations 

and direct spending under paragraph (6) by a uniform percentage to a level sufficient to achieve the reduction required by 

paragraph (6) in the non-defense function. 

‘‘(10) IMPLEMENTATION OF REDUCTIONS.—Any reductions 

imposed under this section shall be implemented in accordance 

with section 256(k). 

‘‘(11) REPORT.—On the dates specified in paragraph (4), 

OMB shall submit a report to Congress containing information 

about the calculations required under this section, the adjusted 

discretionary spending limits, a listing of the reductions 

required for each nonexempt direct spending account, and any 

other data and explanations that enhance public understanding 

of this title and actions taken under it.’’. 

(b) CONFORMING AMENDMENT.—The table of contents set forth 

in section 250(a) of the Balanced Budget and Emergency Deficit 

Control Act of 1985 is amended by inserting after the item relating 

to section 251 the following: 

‘‘Sec. 251A. Enforcement of budget goal.’’. 

TITLE IV—JOINT SELECT COMMITTEE 

ON DEFICIT REDUCTION 

SEC. 401. ESTABLISHMENT OF JOINT SELECT COMMITTEE. 

(a) DEFINITIONS.—In this title: 

(1) JOINT COMMITTEE.—The term ‘‘joint committee’’ means 

the Joint Select Committee on Deficit Reduction established 

under subsection (b)(1). 

(2) JOINT COMMITTEE BILL.—The term ‘‘joint committee bill’’ 

means a bill consisting of the proposed legislative language 

of the joint committee recommended under subsection (b)(3)(B) 

and introduced under section 402(a). 

(b) ESTABLISHMENT OF JOINT SELECT COMMITTEE.— 

(1) ESTABLISHMENT.—There is established a joint select 

committee of Congress to be known as the ‘‘Joint Select Committee on Deficit Reduction’’. 

(2) GOAL.—The goal of the joint committee shall be to 

reduce the deficit by at least $1,500,000,000,000 over the period 

of fiscal years 2012 to 2021. 

(3) DUTIES.— 

(A) IN GENERAL.— 

(i) IMPROVING THE SHORT-TERM AND LONG-TERM

FISCAL IMBALANCE.—The joint committee shall provide 

recommendations and legislative language that will 

significantly improve the short-term and long-term 

fiscal imbalance of the Federal Government. 

(ii) RECOMMENDATIONS OF COMMITTEES.—Not later 

than October 14, 2011, each committee of the House 

of Representatives and the Senate may transmit to 

the joint committee its recommendations for changes 

in law to reduce the deficit consistent with the goal 

described in paragraph (2) for the joint committee’s 

consideration. 

(B) REPORT, RECOMMENDATIONS, AND LEGISLATIVE LANGUAGE.— 

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(i) IN GENERAL.—Not later than November 23, 

2011, the joint committee shall vote on— 

(I) a report that contains a detailed statement 

of the findings, conclusions, and recommendations 

of the joint committee and the estimate of the 

Congressional Budget Office required by paragraph (5)(D)(ii); and 

(II) proposed legislative language to carry out 

such recommendations as described in subclause 

(I), which shall include a statement of the deficit 

reduction achieved by the legislation over the 

period of fiscal years 2012 to 2021. 

Any change to the Rules of the House of Representatives or the Standing Rules of the Senate included 

in the report or legislative language shall be considered 

to be merely advisory. 

(ii) APPROVAL OF REPORT AND LEGISLATIVE LANGUAGE.—The report of the joint committee and the 

proposed legislative language described in clause (i) 

shall require the approval of a majority of the members 

of the joint committee. 

(iii) ADDITIONAL VIEWS.—A member of the joint 

committee who gives notice of an intention to file 

supplemental, minority, or additional views at the time 

of final joint committee vote on the approval of the 

report and legislative language under clause (ii) shall 

be entitled to 3 calendar days in which to file such 

views in writing with the staff director of the joint 

committee. Such views shall then be included in the 

joint committee report and printed in the same volume, 

or part thereof, and their inclusion shall be noted 

on the cover of the report. In the absence of timely 

notice, the joint committee report may be printed and 

transmitted immediately without such views. 

(iv) TRANSMISSION OF REPORT AND LEGISLATIVE

LANGUAGE.—If the report and legislative language are 

approved by the joint committee pursuant to clause 

(ii), then not later than December 2, 2011, the joint 

committee shall submit the joint committee report and 

legislative language described in clause (i) to the President, the Vice President, the Speaker of the House 

of Representatives, and the majority and minority 

Leaders of each House of Congress. 

(v) REPORT AND LEGISLATIVE LANGUAGE TO BE

MADE PUBLIC.—Upon the approval or disapproval of 

the joint committee report and legislative language 

pursuant to clause (ii), the joint committee shall 

promptly make the full report and legislative language, 

and a record of the vote, available to the public. 

(4) MEMBERSHIP.— 

(A) IN GENERAL.—The joint committee shall be composed of 12 members appointed pursuant to subparagraph 

(B). 

(B) APPOINTMENT.—Members of the joint committee 

shall be appointed as follows: 

(i) The majority leader of the Senate shall appoint 

three members from among Members of the Senate. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough21
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(ii) The minority leader of the Senate shall appoint 

three members from among Members of the Senate. 

(iii) The Speaker of the House of Representatives 

shall appoint three members from among Members 

of the House of Representatives. 

(iv) The minority leader of the House of Representatives shall appoint three members from among Members of the House of Representatives. 

(C) CO-CHAIRS.— 

(i) IN GENERAL.—There shall be two Co-Chairs of 

the joint committee. The majority leader of the Senate 

shall appoint one Co-Chair from among the members 

of the joint committee. The Speaker of the House of 

Representatives shall appoint the second Co-Chair 

from among the members of the joint committee. The 

Co-Chairs shall be appointed not later than 14 calendar 

days after the date of enactment of this Act. 

(ii) STAFF DIRECTOR.—The Co-Chairs, acting 

jointly, shall hire the staff director of the joint committee. 

(D) DATE.—Members of the joint committee shall be 

appointed not later than 14 calendar days after the date 

of enactment of this Act. 

(E) PERIOD OF APPOINTMENT.—Members shall be 

appointed for the life of the joint committee. Any vacancy 

in the joint committee shall not affect its powers, but 

shall be filled not later than 14 calendar days after the 

date on which the vacancy occurs, in the same manner 

as the original designation was made. If a member of 

the joint committee ceases to be a Member of the House 

of Representatives or the Senate, as the case may be, 

the member is no longer a member of the joint committee 

and a vacancy shall exist. 

(5) ADMINISTRATION.— 

(A) IN GENERAL.—To enable the joint committee to 

exercise its powers, functions, and duties, there are authorized to be disbursed by the Senate the actual and necessary 

expenses of the joint committee approved by the co-chairs, 

subject to the rules and regulations of the Senate. 

(B) EXPENSES.—In carrying out its functions, the joint 

committee is authorized to incur expenses in the same 

manner and under the same conditions as the Joint Economic Committee is authorized by section 11 of Public 

Law 79–304 (15 U.S.C. 1024 (d)). 

(C) QUORUM.—Seven members of the joint committee 

shall constitute a quorum for purposes of voting, meeting, 

and holding hearings. 

(D) VOTING.— 

(i) PROXY VOTING.—No proxy voting shall be 

allowed on behalf of the members of the joint committee. 

(ii) CONGRESSIONAL BUDGET OFFICE ESTIMATES.— 

The Congressional Budget Office shall provide estimates of the legislation (as described in paragraph 

(3)(B)) in accordance with sections 308(a) and 201(f) 

of the Congressional Budget Act of 1974 (2 U.S.C. 

639(a) and 601(f))(including estimates of the effect of 

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interest payment on the debt). In addition, the 

Congressional Budget Office shall provide information 

on the budgetary effect of the legislation beyond the 

year 2021. The joint committee may not vote on any 

version of the report, recommendations, or legislative 

language unless such estimates are available for 

consideration by all members of the joint committee 

at least 48 hours prior to the vote as certified by 

the Co-Chairs. 

(E) MEETINGS.— 

(i) INITIAL MEETING.—Not later than 45 calendar 

days after the date of enactment of this Act, the joint 

committee shall hold its first meeting. 

(ii) AGENDA.—The Co-Chairs of the joint committee 

shall provide an agenda to the joint committee members not less than 48 hours in advance of any meeting. 

(F) HEARINGS.— 

(i) IN GENERAL.—The joint committee may, for the 

purpose of carrying out this section, hold such hearings, 

sit and act at such times and places, require attendance 

of witnesses and production of books, papers, and documents, take such testimony, receive such evidence, and 

administer such oaths as the joint committee considers 

advisable. 

(ii) HEARING PROCEDURES AND RESPONSIBILITIES OF

CO-CHAIRS.— 

(I) ANNOUNCEMENT.—The Co-Chairs of the 

joint committee shall make a public announcement 

of the date, place, time, and subject matter of 

any hearing to be conducted, not less than 7 days 

in advance of such hearing, unless the Co-Chairs 

determine that there is good cause to begin such 

hearing at an earlier date. 

(II) WRITTEN STATEMENT.—A witness 

appearing before the joint committee shall file a 

written statement of proposed testimony at least 

2 calendar days before the appearance of the witness, unless the requirement is waived by the CoChairs, following their determination that there 

is good cause for failure to comply with such 

requirement. 

(G) TECHNICAL ASSISTANCE.—Upon written request of 

the Co-Chairs, a Federal agency shall provide technical 

assistance to the joint committee in order for the joint 

committee to carry out its duties. 

(c) STAFF OF JOINT COMMITTEE.— 

(1) IN GENERAL.—The Co-Chairs of the joint committee 

may jointly appoint and fix the compensation of staff as they 

deem necessary, within the guidelines for employees of the 

Senate and following all applicable rules and employment 

requirements of the Senate. 

(2) ETHICAL STANDARDS.—Members on the joint committee 

who serve in the House of Representatives shall be governed 

by the ethics rules and requirements of the House. Members 

of the Senate who serve on the joint committee and staff of 

the joint committee shall comply with the ethics rules of the 

Senate. 

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(d) TERMINATION.—The joint committee shall terminate on 

January 31, 2012. 

SEC. 402. EXPEDITED CONSIDERATION OF JOINT COMMITTEE RECOMMENDATIONS. 

(a) INTRODUCTION.—If approved by the majority required by 

section 401(b)(3)(B)(ii), the proposed legislative language submitted 

pursuant to section 401(b)(3)(B)(iv) shall be introduced in the Senate 

(by request) on the next day on which the Senate is in session 

by the majority leader of the Senate or by a Member of the Senate 

designated by the majority leader of the Senate and shall be introduced in the House of Representatives (by request) on the next 

legislative day by the majority leader of the House or by a Member 

of the House designated by the majority leader of the House. 

(b) CONSIDERATION IN THE HOUSE OF REPRESENTATIVES.— 

(1) REFERRAL AND REPORTING.—Any committee of the 

House of Representatives to which the joint committee bill 

is referred shall report it to the House without amendment 

not later than December 9, 2011. If a committee fails to report 

the joint committee bill within that period, it shall be in order 

to move that the House discharge the committee from further 

consideration of the bill. Such a motion shall not be in order 

after the last committee authorized to consider the bill reports 

it to the House or after the House has disposed of a motion 

to discharge the bill. The previous question shall be considered 

as ordered on the motion to its adoption without intervening 

motion except 20 minutes of debate equally divided and controlled by the proponent and an opponent. If such a motion 

is adopted, the House shall proceed immediately to consider 

the joint committee bill in accordance with paragraphs (2) 

and (3). A motion to reconsider the vote by which the motion 

is disposed of shall not be in order. 

(2) PROCEEDING TO CONSIDERATION.—After the last committee authorized to consider a joint committee bill reports 

it to the House or has been discharged (other than by motion) 

from its consideration, it shall be in order to move to proceed 

to consider the joint committee bill in the House. Such a motion 

shall not be in order after the House has disposed of a motion 

to proceed with respect to the joint committee bill. The previous 

question shall be considered as ordered on the motion to its 

adoption without intervening motion. A motion to reconsider 

the vote by which the motion is disposed of shall not be in 

order. 

(3) CONSIDERATION.—The joint committee bill shall be 

considered as read. All points of order against the joint committee bill and against its consideration are waived. The previous question shall be considered as ordered on the joint 

committee bill to its passage without intervening motion except 

2 hours of debate equally divided and controlled by the proponent and an opponent and one motion to limit debate on 

the joint committee bill. A motion to reconsider the vote on 

passage of the joint committee bill shall not be in order. 

(4) VOTE ON PASSAGE.—The vote on passage of the joint 

committee bill shall occur not later than December 23, 2011. 

(c) EXPEDITED PROCEDURE IN THE SENATE.— 

(1) COMMITTEE CONSIDERATION.—A joint committee bill 

introduced in the Senate under subsection (a) shall be jointly 

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S. 365—25 

referred to the committee or committees of jurisdiction, which 

committees shall report the bill without any revision and with 

a favorable recommendation, an unfavorable recommendation, 

or without recommendation, not later than December 9, 2011. 

If any committee fails to report the bill within that period, 

that committee shall be automatically discharged from consideration of the bill, and the bill shall be placed on the appropriate 

calendar. 

(2) MOTION TO PROCEED.—Notwithstanding Rule XXII of 

the Standing Rules of the Senate, it is in order, not later 

than 2 days of session after the date on which a joint committee 

bill is reported or discharged from all committees to which 

it was referred, for the majority leader of the Senate or the 

majority leader’s designee to move to proceed to the consideration of the joint committee bill. It shall also be in order 

for any Member of the Senate to move to proceed to the consideration of the joint committee bill at any time after the conclusion of such 2-day period. A motion to proceed is in order 

even though a previous motion to the same effect has been 

disagreed to. All points of order against the motion to proceed 

to the joint committee bill are waived. The motion to proceed 

is not debatable. The motion is not subject to a motion to 

postpone. A motion to reconsider the vote by which the motion 

is agreed to or disagreed to shall not be in order. If a motion 

to proceed to the consideration of the joint committee bill is 

agreed to, the joint committee bill shall remain the unfinished 

business until disposed of. 

(3) CONSIDERATION.—All points of order against the joint 

committee bill and against consideration of the joint committee 

bill are waived. Consideration of the joint committee bill and 

of all debatable motions and appeals in connection therewith 

shall not exceed a total of 30 hours which shall be divided 

equally between the Majority and Minority Leaders or their 

designees. A motion further to limit debate on the joint committee bill is in order, shall require an affirmative vote of 

three-fifths of the Members duly chosen and sworn, and is 

not debatable. Any debatable motion or appeal is debatable 

for not to exceed 1 hour, to be divided equally between those 

favoring and those opposing the motion or appeal. All time 

used for consideration of the joint committee bill, including 

time used for quorum calls and voting, shall be counted against 

the total 30 hours of consideration. 

(4) NO AMENDMENTS.—An amendment to the joint committee bill, or a motion to postpone, or a motion to proceed 

to the consideration of other business, or a motion to recommit 

the joint committee bill, is not in order. 

(5) VOTE ON PASSAGE.—If the Senate has voted to proceed 

to the joint committee bill, the vote on passage of the joint 

committee bill shall occur immediately following the conclusion 

of the debate on a joint committee bill, and a single quorum 

call at the conclusion of the debate if requested. The vote 

on passage of the joint committee bill shall occur not later 

than December 23, 2011. 

(6) RULINGS OF THE CHAIR ON PROCEDURE.—Appeals from 

the decisions of the Chair relating to the application of the 

rules of the Senate, as the case may be, to the procedure 

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S. 365—26 

relating to a joint committee bill shall be decided without 

debate. 

(d) AMENDMENT.—The joint committee bill shall not be subject 

to amendment in either the House of Representatives or the Senate. 

(e) CONSIDERATION BY THE OTHER HOUSE.— (1) IN GENERAL.—If, before passing the joint committee 

bill, one House receives from the other a joint committee bill— 

(A) the joint committee bill of the other House shall 

not be referred to a committee; and 

(B) the procedure in the receiving House shall be the 

same as if no joint committee bill had been received from 

the other House until the vote on passage, when the joint 

committee bill received from the other House shall supplant 

the joint committee bill of the receiving House. 

(2) REVENUE MEASURE.—This subsection shall not apply 

to the House of Representatives if the joint committee bill 

received from the Senate is a revenue measure. 

(f) RULES TO COORDINATE ACTION WITH OTHER HOUSE.— (1) TREATMENT OF JOINT COMMITTEE BILL OF OTHER

HOUSE.—If the Senate fails to introduce or consider a joint 

committee bill under this section, the joint committee bill of 

the House shall be entitled to expedited floor procedures under 

this section. 

(2) TREATMENT OF COMPANION MEASURES IN THE SENATE.— If following passage of the joint committee bill in the Senate, 

the Senate then receives the joint committee bill from the 

House of Representatives, the House-passed joint committee 

bill shall not be debatable. The vote on passage of the joint 

committee bill in the Senate shall be considered to be the 

vote on passage of the joint committee bill received from the 

House of Representatives. 

(3) VETOES.—If the President vetoes the joint committee 

bill, debate on a veto message in the Senate under this section 

shall be 1 hour equally divided between the majority and 

minority leaders or their designees. 

(g) LOSS OF PRIVILEGE.—The provisions of this section shall 

cease to apply to the joint committee bill if— 

(1) the joint committee fails to vote on the report or proposed legislative language required under section 401(b)(3)(B)(i) 

not later than November 23, 2011; or 

(2) the joint committee bill does not pass both Houses 

not later than December 23, 2011. 

SEC. 403. FUNDING. 

Funding for the joint committee shall be derived in equal portions from— 

(1) the applicable accounts of the House of Representatives; 

and 

(2) the contingent fund of the Senate from the appropriations account ‘‘Miscellaneous Items’’, subject to the rules and 

regulations of the Senate. 

SEC. 404. RULEMAKING. 

The provisions of this title are enacted by Congress— 

(1) as an exercise of the rulemaking power of the House 

of Representatives and the Senate, respectively, and as such 

they shall be considered as part of the rules of each House, 

respectively, or of that House to which they specifically apply, 

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S. 365—27 

and such rules shall supersede other rules only to the extent 

that they are inconsistent therewith; and 

(2) with full recognition of the constitutional right of either 

House to change such rules (so far as relating to such House) 

at any time, in the same manner, and to the same extent 

as in the case of any other rule of such House. 

TITLE V—PELL GRANT AND STUDENT 

LOAN PROGRAM CHANGES 

SEC. 501. FEDERAL PELL GRANTS. 

Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 

(20 U.S.C. 1070a(b)(7)(A)(iv)) is amended— 

(1) in subclause (II), by striking ‘‘$3,183,000,000’’ and 

inserting ‘‘$13,183,000,000’’; and 

(2) in subclause (III), by striking ‘‘$0’’ and inserting 

‘‘$7,000,000,000’’. 

SEC. 502. TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STUDENTS. 

Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 

1087e(a)) is amended by adding at the end the following new 

paragraph: 

‘‘(3) TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STUDENTS.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B) and 

notwithstanding any provision of this part or part B, for 

any period of instruction beginning on or after July 1, 

2012— 

‘‘(i) a graduate or professional student shall not 

be eligible to receive a Federal Direct Stafford loan 

under this part; and 

‘‘(ii) the maximum annual amount of Federal 

Direct Unsubsidized Stafford loans such a student may 

borrow in any academic year (as defined in section 

481(a)(2)) or its equivalent shall be the maximum 

annual amount for such student determined under section 428H, plus an amount equal to the amount of 

Federal Direct Stafford loans the student would have 

received in the absence of this subparagraph. 

‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply 

to an individual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 484(b).’’. 

SEC. 503. TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES. 

Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C. 

1087e(b)(8)) is amended— 

(1) in subparagraph (A)— 

(A) by amending the header to read as follows: ‘‘(A) 

INCENTIVES FOR LOANS DISBURSED BEFORE JULY 1, 2012.— 

’’; and 

(B) by inserting ‘‘with respect to loans for which the 

first disbursement of principal is made before July 1, 2012,’’ 

after ‘‘of this part’’; 

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(2) in subparagraph (B), by inserting ‘‘with respect to loans 

for which the first disbursement of principal is made before 

July 1, 2012’’ after ‘‘repayment incentives’’; and 

(3) by adding at the end the following new subparagraph: 

‘‘(C) NO REPAYMENT INCENTIVES FOR NEW LOANS DISBURSED ON OR AFTER JULY 1, 2012.—Notwithstanding any 

other provision of this part, the Secretary is prohibited 

from authorizing or providing any repayment incentive not 

otherwise authorized under this part to encourage on-time 

repayment of a loan under this part for which the first 

disbursement of principal is made on or after July 1, 2012, 

including any reduction in the interest or origination fee 

rate paid by a borrower of such a loan, except that the 

Secretary may provide for an interest rate reduction for 

a borrower who agrees to have payments on such a loan 

automatically electronically debited from a bank account.’’. 

SEC. 504. INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING 

AND MASTER CALENDAR EXCEPTION. 

Sections 482(c) and 492 of the Higher Education Act of 1965 

(20 U.S.C. 1089(c), 1098a) shall not apply to the amendments made 

by this title, or to any regulations promulgated under those amendments. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough28
 

RECORD VERSION 

STATEMENT BY 

GENERAL RAYMOND T. ODIERNO 

CHIEF OF STAFF UNITED STATES ARMY 

BEFORE THE 

SENATE ARMED SERVICES COMMITTEE 

FIRST SESSION, 113TH CONGRESS 

ON IMPACTS OF SEQUESTRATION AND/OR A FULL-YEAR CONTINUING RESOLUTION 

ON THE ARMY 

FEBRUARY 12, 2013 

 

NOT FOR PUBLICATION UNTIL RELEASED BY THE 

COMMITTEE ON ARMED SERVICES 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough29
 

The fiscal outlook which the U.S. Army faces today is dire and, to our knowledge, 

unprecedented. The Army has been in a state of continuous war for nearly twelve years – the 

longest in our Nation’s history. Today we have more than 81,000 Soldiers committed to 

operations around the world with approximately 58,000 in Afghanistan. Nearly 1.5 million 

Soldiers have deployed and more than half a million have deployed multiple times, some as 

many as four, five, and six times. More than 4,800 Soldiers have given their lives on behalf of 

this Nation. 

The magnitude of today’s fiscal uncertainty will have grave consequences for our 

Soldiers, our civilians, and our families who have sacrificed so much over the past decade. 

We cannot put the weight of these cuts on their shoulders. If nothing is done to mitigate the 

effects of operations under a continuing resolution, shortfalls in our funding of overseas 

operations, and the enactment of sequestration, the Army will be forced to make dramatic cuts 

to its personnel, its readiness, and its modernization programs, hence putting our national 

security at risk. 

Before I describe the challenges we face this fiscal year, let me remind the committee of 

the actions we are taking to comply with the Budget Control Act of 2011. This act required 

$487 billion in cuts over ten years across the Department of Defense, of which the Army’s 

share is estimated to be $170 billion. As a result of these cuts, the Army is reducing the active 

duty endstrength from a wartime high of about 570,000 to 490,000, the Army National Guard 

from 358,000 to 350,000, the U.S. Army Reserve from 206,000 to 205,000, and the civilian 

workforce from 272,000 to 255,000 by the end of fiscal year 2017 (FY17). This is a net loss of 

106,000 Soldier and civilian positions. By FY17, we will downsize our active component force 

structure from 45 Brigade Combat Teams to potentially as low as 32. On January 18th, we 

released a Programmatic Environmental Assessment describing the impact of potential force 

structure reductions across the Army. We began these force reductions in FY12 focused 

initially on our overseas formations. In 2014, however, we will begin significant force 

reductions in the United States. 

In addition to personnel and force structure reductions, we have had to extend the 

timelines of our modernization programs and reduce the frequency of our training exercises 

putting us on the outer edge of acceptable risk for our future force and our ability to meet our 

National Security Strategy. 

The actions we have taken to adapt to the new defense strategic guidance are 

independent of the continuing resolution and sequestration. However, the domestic impacts of 

these actions are only now beginning to be felt and will be magnified over next several years. 

The fiscal crisis we now face is due in part to the fundamental lack of predictability in the 

budget cycle. Since FY11, the Department of Defense has operated under a continuing 

resolution for 14 of the last 28 months. Each continuing resolution prevents new starts for 

needed programs, limits reprogramming actions, creates inefficiency, and often results in 

wasteful funding for accounts that we no longer want or need. This uncertainty creates 

challenges in projecting future funding requirements that inform our annual budgets over time. 

The lack of predictability has been exacerbated by the threat of sequestration for the past year 

and a half. In FY13, we now find ourselves in the midst of a perfect storm created by a 

continuing resolution, a shortfall in funds for overseas contingency operations, and the threat 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough30
 

of sequestration. If not addressed, the current fiscal uncertainty will significantly and rapidly 

degrade Army readiness for the next five to ten years. 

The FY13 continuing resolution has funded the Army’s base budget at fiscal year 2012 

levels, resulting in a shortfall of more than $6 billion in the Operation and Maintenance, Army 

(OMA) accounts relative to the President’s Budget. Unless DoD is given sufficient authorities 

that will allow the Army to reprogram the necessary funds across appropriations, this shortfall 

will impact readiness. 

Under the continuing resolution, we also face an approximate $5-6 billion shortfall in 

OMA Overseas Contingency Operations (OCO) funding for FY13 because of costs related to 

the war in Afghanistan. This impacts the preparation of units about to deploy, current 

operations in support of Operation Enduring Freedom (OEF), and our ability to reset 

equipment and personnel. In order to ensure our Soldiers are prepared, we have committed 

and will continue to commit 100% of our operation and maintenance requirements for OEF. 

However, this exacerbates the funding shortfalls for the rest of the Army that is not deploying 

to Afghanistan, creating unacceptable readiness for the future. 

In addition to the impacts that the continuing resolution and OCO shortfalls are having 

on the force, a sequestration order is scheduled to be issued on March 1, and a second 

sequestration order due to the breach in the FY13 discretionary caps is scheduled to be 

implemented on March 27. Using DoD planning assumptions for sequester, we estimate that 

sequestration will impose an additional $12 billion cut on the Army’s budget in the remaining 

months of FY13, to include a $5 billion cut in OMA, and approximately $1 billion in the Reserve 

Component operation and maintenance accounts. The remaining $6 billion will be taken 

across the board from our procurement; Research, Development, Test, and Evaluation 

(RTDE); and military construction accounts. 

While budgetary uncertainty negatively affects each of the Army’s operating and 

investment accounts, our OMA account is the most heavily burdened. Together, the 

continuing resolution, OCO shortfall, and sequestration will equate to $18 billion in shortfalls to 

the OMA account in the final seven months of FY13. 

As always, our priority will be to ensure that all Soldiers in Afghanistan and those next to 

deploy are prepared and ready. We will ensure that the Forces in Korea are properly equipped 

and ready. We will continue to fund all programs related to Wounded Warrior care. Then we 

will determine if we have sufficient funds to continue training the Division-Ready Brigade at 

Fort Bragg – the Army’s Global Response Force. These priority efforts will consume 43% of 

our OMA but are applied to only 22% of the force. Therefore, the remaining 78% of the force 

will have to absorb the $18 billion in shortfalls out of the remaining 57% of the OMA budget. 

What that means is that the 78% of the force –more than three-quarters of the Army not in 

Afghanistan or Korea or deploying this year – will significantly curtail training today. Even with 

training and sustainment spending curtailed, we expect our accounts to be exhausted by July. 

The impact will translate into significant readiness issues through FY14 and beyond, and put at 

risk our ability to deploy forces to meet all contingency operations. 

Given these challenges, the Secretary of the Army and I have taken the following steps 

to reduce our expenditure rate and mitigate, to the extent possible, the risk to current and 

future fiscal year budget execution: 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough31
 

 We are terminating an estimated 3,100 temporary and term employees and have 

directed an immediate Army-wide hiring freeze. These employees typically fill gaps in 

our installation services such as Army substance abuse programs, law enforcement, 

physical security, public works, and installation education programs. 

 We have initiated planning to furlough up to 251,000 civilians for one day a week for 

twenty-two weeks, in full recognition of the risks of decreased productivity, morale, and 

the loss of 20% of their pay while furloughed. In addition to the hardship this poses to 

our dedicated workforce, this furlough will have an immediate trickle-down effect as the 

majority of these civilians are located throughout the U.S. on our posts and stations, and 

their spending directly impacts local economies and contributes towards state and local 

taxes. Any furlough would have an immediate impact on fire and emergency services, 

law enforcement, airfield operations, and all of our Army family programs. 

 We are making plans to cancel 3rd and 4th quarter depot maintenance. As a result, we 

are terminating employment of an estimated 5,000 temporary, term, contractor, and 

permanent employees due to the reduced Depot Maintenance workload. We will 

reduce Army purchase orders with 3,000 companies, of which 37%, or approximately 

1,100, may consequently face moderate to high risk for bankruptcy. The reduction in 

maintenance will delay equipment readiness for six Divisions (3rd Infantry Division 

[Georgia], 4th Infantry Division [Colorado], 10th Mountain Division [Louisiana and New 

York], 25th Infantry Division [Alaska and Hawaii], 101st Airborne Division (Air Assault) 

[Kentucky] and 82d Airborne Division [North Carolina]). These delays will halt the reset 

of 1,000 Tactical Wheeled vehicles, 14,000 communication devices and 17,000 

weapons in Active and Reserve units for three to four years following redeployment. 

 We will cancel all but one of the Brigade Maneuver Combat Training Center (CTC) 

rotations for non-deploying units. Our inability to train non-deploying units will degrade 

our units’ readiness posture and inhibit the progressive build of unit capability to meet 

early FY14 missions, emergent requirements, and timelines associated with Combatant 

Commanders war plans. 

 We are reducing institutional training across the Army. This will result in a backlog 

across our education and individual training courses well into FY14 and shortfalls in 

critical specialties. 

For example, we will curtail seven courses that support our Homeland Defense/Civil 

Support Mission resulting in a shortfall of over 1,600 trained operators and severely 

degrading Chemical, Biological, Radiological and Nuclear Response Enterprise. These 

teams require all unit members to be trained and certified with specific individual 

certifications tied to both National Fire Protection Agency standards and public law for 

operations in the Homeland. There are no other courses within the Army or the Joint 

Forces that provide this level of certification.. 

We will cut 37,000 flying hours from our aviation training at Fort Rucker, which will 

create a shortfall of over 500 aviators by the end of FY13 and will create a backlog at 

flight school that will take over two years to reduce. We are curtailing sixteen military 

intelligence training courses, resulting in over 4,000 fewer Soldiers with the intelligence 

skills the Army requires. At Fort Sill, we will have to cancel fifteen Field Artillery 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough32
 

Advanced Individual Training courses. Soldier training for recruiting duties will be 

curtailed in March resulting in over 900 untrained recruiters. 

The Army Corps of Engineers will reduce training slots at the Prime Power School for 

the Army’s 249th Engineer Battalion, which provides power for the Department of 

Defense Disaster Response. Over time, reductions in training to critical specialties will 

decrease the Active Army, the Army National Guard, and the U.S. Army Reserves’ 

responsiveness to crises and natural disasters in our communities across the United 

States. 

We are cancelling attendance at some of our mid-career officer and noncommissioned 

officer training programs across the Total Army including the Captains Career Common 

Core Course, Intermediate Level Education, and Noncommissioned Officer Education 

System (NCOES) common core. This will add to the already tremendous backlog of 

midgrade officer and NCO education that has built up during the almost twelve years of 

war. 

We have curtailed our civilian professional development training and education. This 

will cause an interruption in our intern training programs, reducing the pipeline and the 

functional and technical competency of the next generation of our Army civilians. It will 

also delay or eliminate civilian education and training opportunities – from entry level to 

senior management courses – impacting the growth and development of the Army’s 

future civilian leaders at all levels of government service. 

 We are in the process of reducing our base sustainment funds by $2 billion in FY13, a 

70% drop from what has been historically required to run our installations. This means 

even bare minimum maintenance cannot be sustained. In the event of water main 

breaks, clogged sewage, water damage, or power failure, there will not be adequate 

funding to repair these facilities, which would likely result in closure and personnel 

relocation. This also translates into an estimated 100,000 facility work orders per month 

that will not be executed, which places the Army on an accelerated slippery slope where 

our buildings will fail faster than we can fix them. 

All restoration and modernization projects, including renovations to the United States 

Military Academy Cadet Barracks, the Training Barracks Upgrade Program that consists 

of 12 projects at 8 locations in the U.S., and our ability to complete relocation plans and 

projected closures in Europe will be eliminated. All projects under the Army Energy 

Program, to include upgraded energy efficiencies, utility system modernizations, and 

small renewable projects will also be cancelled. We have postponed all new 

construction projects, such as the Landstuhl Hospital in Germany and the Arlington 

National Cemetery expansion. 

 We have initiated an Army-wide service contract review to identify savings and we are 

taking action to potentially terminate all non-essential contracts in coordination with our 

commands. These contracts support a myriad of programs, including facility 

maintenance, education and training, medical support, and equipment and provide 

thousands of jobs across our Army installations. Many of these contracts provide direct 

support to our Soldiers, civilians, and their families, and their cancellation will cause 

backlogs in services rendered at our hospitals, our education centers, our schools, and 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough33
 

our child development centers. Once a contract is terminated, it takes at least 150 days 

to restart a cancelled program, increasing the workload on an already taxed acquisition 

workforce, and increasing costs of the program in the short term. 

 Our National Guard and Reserve will experience cuts of 22% and 50% respectively in 

their medical readiness accounts. For example, we have cancelled pre-mobilization 

medical support for nearly 200,000 Army National Guard and U.S. Army Reserve 

Soldiers, which will degrade reserve unit readiness and increase post-mobilization 

training costs. 

 We will curtail Operational Test and Evaluation operations affecting program of record 

development and fielding schedules which will add costly delays to critical acquisition 

programs and the fielding of equipment to Soldiers. Particularly in the areas of 

networking capability and precision munitions, we will experience delays in key network 

programs such as the Warfighter Information Network-Tactical (WIN-T) and the Joint 

Battle Command-Platform (JBC-P). 

 We are reducing our Science and Technology (S&T) programs by approximately $300 

million. We anticipate making reductions to our federal civilian employees and support 

contractors, and reducing programs with our academic and industry partners across all 

fifty states and the District of Columbia. The Assistant Secretary of the Army 

(Acquisition, Logistics, and Technology) [ASA(ALT)] provided an assessment to the 

Assistant Secretary of Defense (Research and Engineering) on 1 February 2013

detailing the impact to Department of Defense research priorities. 

In addition to impact of sequestration for FY13, the lowering of discretionary caps for 

FY14-FY21 will have long term impacts that extend beyond the current fiscal year. In order to 

maintain a balance between End Strength, readiness and modernization, the Army will have to 

reduce additional 100,000 personnel across the Active Army, Army National Guard and U.S. 

Army Reserve. This will generate a total reduction of approximately 189,000 personnel in the 

coming years. 

We succeeded in recent years to bring personnel readiness in the Army National Guard 

and U.S. Army Reserve from 40% up to 70%; that readiness will rapidly drop, and indeed the 

degradation has already begun. Let me emphasize that these readiness issues are not limited 

to the Active Component. They will hit the Total Army. In fact, the reduction in overseas 

deployments which has sustained our reserve readiness over the past twelve years may result 

in us being unable to maintain our Operational Reserve. 

Sequestration will continue to affect our valued civilian workforce, which would likely 

absorb cuts that would be sized proportionally to the cuts in our uniformed military endstrength. 

Sequestration threatens the civilian workforce with enormous uncertainty, and may to some 

extent encourage the most capable to seek more predictability through employment outside 

the Department, resulting in the loss of critical continuity and stability that our civilian 

employees provide to the uniformed force that rotates on a routine basis. 

The losses in training and readiness we accrue in FY13 mean that we start FY14 

already at a marked disadvantage. One of the primary challenges we face over the next five 

years is to re-orient our force to the broader array of missions we may face in the years ahead, 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough34
 

whether it be weapons of mass destruction (WMD) recovery, cyber operations, support to 

civilian authorities, or high–intensity combat. To get our leaders and their formations to the 

state of preparedness we need, we must train hard on a wide number of tasks at our home 

station and at our combat training centers. Many of our leaders and their units will be 

conducting these tasks for the first time, meaning that we actually need to invest in longer 

periods of training to achieve proficiency. Sequestration will place in jeopardy our ability to 

achieve this readiness, so we will have to fundamentally reconsider whether the Army has the 

ability to meet Combatant Commander requirements. 

The long term nature of sequestration puts every one of the Army’s ten major 

investment priorities in jeopardy including vital network, combat vehicle and aviation 

modernization programs. The industrial base assorted with supporting the Army is also likely 

to make cost-benefit decisions about where best to be competitive, with the attendant decline 

in developing and producing the equipment our soldiers need. We will also be finalizing the 

withdrawal of the bulk of our equipment from Afghanistan, which, along with equipment still 

being reset from Iraq, will require additional investment to return to full use. 

Additionally, leader development will continue to be shortchanged. While we can recruit 

and train soldiers in relatively short order, we cannot build their leaders in a similar time span. 

The professional non-commissioned and commissioned officers who carry the Army across the 

years need the benefit of not only serving in units that train for and conduct wide ranging 

missions but also the professional education that deepens their knowledge of and commitment 

to the profession. 

While all of these trends are ultimately reversible, the critical variable is time. 

Maintaining a capable and ready Army is not like flipping a light switch; it takes years of 

dedicated effort by a large number of dedicated professionals. Sequestration will take that 

time from us. 

Ladies and Gentlemen, sequestration is not in the best interest of our country, our 

Soldiers, or our national security. Our current fiscal uncertainty is resulting in the cancellation 

of training today, the reduction of services to Army Families today, and the firing of 3,100 

valuable civilian employees today. The cumulative effect of the Army’s budget shortfalls and 

the enactment of sequestration put at risk the Army’s ability to execute Department of Defense 

Strategic Guidance. 

We have a talented, committed, experienced, well-led, and professional force. Our 

Army has performed its missions in Iraq and Afghanistan with great proficiency, 

professionalism, and courage. We cannot take the readiness of our force for granted. We 

cannot send our Soldiers into combat unprepared. If we don’t have the resources to ensure 

their readiness, our Soldiers will be the ones who pay the price. It is incomprehensible to me 

that we will put this burden on the shoulders of those who have sacrificed so much during 

nearly twelve years at war. 

Mr. Chairman, Members of the Committee: Thank you again for the opportunity to 

speak here today. The Army leadership understands the seriousness of our country’s fiscal 

situation, but we need a legislative solution that averts sequestration and gives our leaders the 

flexibility to work with the resources you provide to shape our Forces for the future. We will be 

good stewards of the resources you give us. It is an honor to serve this great Nation and stand 

beside the dedicated professionals of our Army. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough35
 

The strength of our Nation is our Army 

The strength of our Army is our Soldiers 

The strength of our Soldiers is our Families. 

This is what makes us Army Strong! 

I look forward to your questions. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough36
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough37

SECRETARY OF DEFENSE 

1 000 DEFENSE PENTAGON 

WASHINGTON, DC 20301-1000 

FEB 2 0 2013 

MEMORANDUM FOR DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES 

SUBJECT: Preparations for Potential Sequestration on March 1 and Furlough Notifications 

For more than a year and a half, the President, the Joint Chiefs of Staff, and I have 

repeatedly voiced our deep concerns over the half a trillion dollars in automatic across-the-board 

cuts that would be imposed under sequestration and the severe damage that it would do to both 

this Department and our national defense. 

The Administration continues to work with Congress to reach agreement on a balanced 

deficit reduction plan to avoid these cuts. Meanwhile, because another trigger for sequestration 

is approaching on March 1

5

\ the Department's leadership has begun extensive planning on how 

to implement the required spending reductions. These cuts will be magnified because the 

Department has been forced to operate under a six-month continuing resolution that has already 

compelled us to take steps to reduce spending. 

In the event of sequestration, we will do everything we can to continue to perform our 

core mission of providing for the security of the United States, but there is no mistaking that the 

rigid nature and scale of the cuts forced upon this Department will result in a serious erosion of 

readiness across the force. 

I have also been deeply concerned about the potential direct impact of sequestration on 

you and your families. We are doing everything possible to limit the worst effects on DoD 

personnel - but I regret that our flexibility within the law is extremely limited. The President has 

used his legal authority to exempt military personnel funding from sequestration, but we have no 

legal authority to exempt civilian personnel funding from reductions. As a result, should 

sequestration occur and continue for a substantial period, DoD will be forced to place the vast 

majority of its civilian workforce on administrative furlough. 

Today, I notified Congress that furloughs could occur under sequestration. I can assure 

you that, if we have to implement furloughs, all affected employees will be provided at least 30 

days' notice prior to executing a furlough and your benefits will be protected to the maximum 

extent possible. We will work to ensure that furloughs are executed in a consistent and 

appropriate manner, and we will also continue to engage in discussions with employee unions as 

appropriate. More information and answers to frequently asked questions regarding furloughs 

can be found at www.opm.gov/furlough, under the "administrative furlough" section. 

080001644-13 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough38

Working with your component heads and supervisors, the Department's leaders will 

continue to keep you informed. As we deal with these difficult issues, I want to thank you for 

your patience, hard work, and continued dedication to our mission of protecting the country. 

Our most important asset in the Department is our world-class personnel. You are 

fighting every day to keep our country strong and secure, and rest assured that the leaders of this 

Department will continue to fight with you and for you. 

2 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough39

SECRETARY OF DEFENSE 

1 000 DEFENSE PENTAGON 

WASHINGTON, DC 20301-1000 

The Honorable Joseph R. Biden, Jr. 

President of the Senate 

United States Senate 

S-212 Capitol Building 

Washington, DC 20510 

Dear Mr. President: 

FEB 2 0 2013 

In accordance with statute, I am providing a report on potential civilian furloughs within 

the Department of Defense. Specifically, title 10, U.S.C., section 1597(e), provides that the 

Secretary of Defense "may not implement any involuntary reduction or furlough of civilian 

positions ... until the expiration of the 45-day period beginning on the date on which the 

Secretary submits to Congress a report setting forth the reasons why such reduction or furloughs 

are required and a description of any change in workload or positions requirements that will 

result from such reductions or furloughs." This letter provides the report and information 

required by this section. 

We remain hopeful that the Administration and Congress will reach an agreement to 

avoid the across-the-board reductions in Federal spending required by the Budget Control Act of 

2011, commonly known as "sequestration." The Department must, however, continue to plan 

for such reductions should Congress not take action prior to sequestration taking effect on March 

1, 2013. If sequestration is not avoided, the magnitude of the potential reductions will damage 

force readiness, slow major acquisition programs, and necessitate civilian furlough actions that 

will negatively affect our Federal civilian workforce. Overall, sequestration will put us on a path 

toward a hollow force and inflict serious damage on our national security. 

If faced with sequestration, the Defense Department will be forced to forego critical 

objectives. As we make the difficult decisions about how to maintain our national security to the 

greatest extent we can in light of these destructive cuts, the Department will have to consider 

furloughs across the entire defense civilian workforce in order to meet the fiscal target mandated 

by sequestration. Because there will be no change in the requirements for work to be performed 

by the Department's workforce to maintain our national security, the workload on each employee 

and the requirements for each position that will result from such furloughs will be increased 

beyond what can reasonably be achieved. The furloughs contemplated by this notice will do real 

harm to our national security. Moreover, we understand that furloughs would have serious 

adverse effects on the livelihood, morale, and productivity of our workforce, and where possible 

we will take steps to minimize those effects. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough40

Nevertheless, if required, it is my goal to apply furlough actions in a consistent and 

equitable manner across the Department, though variations may occur because of the mission 

and budgetary requirements of each military department and agency. Each military department 

and agency within the Department will prepare detailed sequestration plans, and the Department 

will submit an updated plan for operations under a sequestration to Congress, as required by 

section 116(b) ofthe Continuing Appropriations Resolution, 2013, Public. Law 112-175. 

Finally, if furlough actions prove to be necessary, every affected employee would be 

subject to furlough for up to 22 discontinuous work days (176 total hours), the maximum number 

of furlough days allowed without triggering additional notification requirements that follow 

reduction-in-force procedures (though such an extended furlough action would still constitute a 

temporary placement on non-pay/non-duty status, rather than a permanent separation from 

service). We will provide affected employees the requisite advance notice before a furlough 

occurs. The Department is also engaged in the necessary and appropriate discussions with 

employee unions, and will discharge any applicable collective bargaining obligations that may 

arise. In the event an agreement is reached that averts sequestration and restores needed funding, 

we will immediately cancel any furloughs that have resulted and cease furlough planning. 

While furloughs would be disruptive and damaging to our ability to carry out the defense 

mission, there are no viable alternatives for the Department if sequestration actually occurs. We 

will continue to work with Congress in an effort to avoid sequestration and furloughs. A similar 

letter is being sent to the Speaker of the House and the defense oversight committees. 

Sincerely, 

 777
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough41

-

READINESS AND 

FORCE MANAGEMENT 

OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE 

4000 DEFENSE PENTAGON 

WASHINGTON, D.C. 20301-4000 

MEMORANDUM FOR: SEE DISTRIBUTION FE8 2 1 2013 

SUBJECT: Total Force Management and Budgetary Uncertainty 

Reference: (a) Deputy Secretary of Defense Memorandum, "Handling Budget Uncertainty in Fiscal 

Year 2013", dated 10 January 2013 

(b) Under Secretary of Defense ofPersonnel & Readiness Memorandum, "Prohibition on 

Converting Certain Functions to Contract Performance", dated 1 December 2011 

(c) Deputy Secretary of Defense Memorandum, "Guidance for Limitation on Aggregate 

Annual Amount Available for Contracted Services", dated 3 June 2012 

(d) Under Secretary ofDefense of Personnel & Readiness Memorandum, "Guidance 

Related to the Utilization of Military Manpower to Perform Certain Functions", dated 

2 March2012 

(e) DoD Instruction 1100.22, "Guidance for Determining Workforce Mix" , dated 12 

Apri12010 

This memorandum provides guidance for the management of the Total Force (active and 

reserve military, government civilians, and contracted support) during this time of continued budget 

uncertainty. The Department must maintain the viability of the All-Volunteer Force and sustain its 

operational readiness in the most cost-conscious manner. To do so, the Department must also maintain 

a properly sized, highly capable civilian workforce that is aligned to mission and workload; 

complements and delivers support to the military; supports the well-being of the warfighters and their 

families; and recognizes evolving critical demands while guarding against an erosion of organic skills 

and an overreliance on contracted services. Finally, the use of contracted services must continue to be 

reviewed to ensure the most appropriate, cost effective, and efficient support aligned to mission. 

As DoD Components begin to take actions consistent with reference (a)- including the 

implementation of civilian hiring freezes, the release of term or temporary civilian employees, and 

other personnel related actions - they must be mindful of the Department's obligations to manage the 

Total Force consistent with Title 10 statutory requirements and references (b) through (e). These 

considerations are required in planning for the potential reduction or unavailability of fiscal year 2013 

funds (with the exception of funds for military personnel) associated with sequester or the continuing 

resolution. 

Consistent with section 2461 oftitle 10, United States Code, and reference (b), the conversion 

of functions or work performed by, or designated for performance by, civilian employees to contract 

perfonnance without a public-private competition is expressly prohibited. Currently such competitions 

are prohibited under section 325 of the National Defense Authorization Act for Fiscal Year 2010 

(Public Law 111-84). Workload currently performed by, or designated for performance by, civilian 

employees may not be transferred or assumed by contractors performing against prior year obligations. 

Most importantly, contractors may not perform inherently governmental work, and section 2464 of 

title 10, United States Code expressly prohibits contracting of certain functions (enclosure 1 ). DoD 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough42

Component heads, as well as field commanders and line managers, are urged to be particularly vigilant 

to prevent the inappropriate conversion of work to contract performance. 

Additionally, limits on contracted support spending enacted in section 808 of the National 

Defense Authorization Act for Fiscal Year 2012, Public Law 112-81, and implemented via reference 

(c) still apply. The statutory obligations in section 2330a oftitle 10, United States Code, to minimize 

reliance on contract performance of work closely associated with inherently governmental functions 

(see illustrative examples at enclosure 2) remain in force. Moreover, the guidance in reference (c) to 

achieve reductions of such reliance, as well as in staff augmentation contract support, remains in effect. 

Planning for budgetary uncertainty does not relieve DoD Components from compliance with these 

mandates. 

As we continue planning during this period of budgetary uncertainty, the Department must also 

ensure military personnel are not inappropriately utilized, particularly in a manner that may degrade 

readiness or result in unnecessary costs to the Department. Consistent with references (d) and (e), 

except in extraordinary, and typically temporary, circumstances, individual military personnel or units 

should not perform functions or work that is not military essential (see illustrative examples in 

enclosure 3). The use of"borrowed" or ''repurposed" military can harm readiness and operational 

capabilities by diverting service members from training or performance of military essential functions, 

particularly when military members are required to work outside of their occupational specialties. In 

addition to the risk of hollowing the force, this practice could adversely impact the All-Volunteer 

Force and have negative effects on the recruitment, retention, and career progression of individual 

members. During this period of budgetary uncertainty, military units may perform work previously 

performed by civilian employees or contracted support as part of a rotation base for an operational 

capability (if this has been reflected in Operational Orders), provided this is done on a limited and 

temporary basis. In the event of sequestration, where military personnel accounts are exempted, there 

may be instances where military personnel can be used on a short-term, emergency basis to satisfy a 

demand that is of mission critical importance. 

Please ensure maximum distribution of this memorandum throughout your organization, 

particularly to your manpower, personnel, and resourcing communities. Questions regarding 

application and implementation of this memorandum should be addressed to the following points of 

contact within the Office of Total Force Planning & Requirements: Mr. Thomas Hessel 

(thomas.hessel@osd.mil or 703-697-3402), and Ms. Amy Parker (amy.parker@osd.mil or 703-697-

1735). Thank you for your support in the mitigating risks from budgetary uncertainty that could 

adversely affect the sustainability and readiness of the All Volunteer Force. 

Enclosures: As stated 

q-;fJ~ Frederick Vollrath 

Principal Deputy Assistant Secretary of Defense for 

Readiness and Force Management 

Performing the Duties of the Assistant Secretary of 

Defense for Readiness and Force Management 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough43

DISTRIBUTION: 

SECRET ARIES OF THE MILITARY DEPARTMENTS 

CHAIRMAN OF THE JOINT CHIEFS OF STAFF 

UNDER SECRET ARIES OF DEFENSE 

DEPUTY CHIEF MANAGEMENT OFFICER 

COMMANDERSOFTHECOMBATANTCO~S 

DIRECTOR, COST ASSESSMENT AND PROGRAM EVALUATION 

DIRECTOR, OPERATIONAL TEST AND EVALUATION 

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE 

INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE 

ASSIST ANT SECRETARIES OF DEFENSE 

DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER 

ASSISTANTS TO THE SECRETARY OF DEFENSE 

DIRECTOR, ADMINISTRATION AND MANAGEMENT 

DIRECTOR, NET ASSESSMENT 

DIRECTORS OF THE DEFENSE AGENCIES 

DIRECTORS OF THE DOD FIELD ACTIVITIES 
Enclosure 1 

Non-Exhaustive Examples of Inherently Governmental Functions 

(Extract from Office of Federal Procurement Policy Letter 11-1 (September 12, 2011) 

 

1. The direct conduct of criminal investigation. 

2. The control of prosecutions and performance of adjudicatory functions (other than those 

relating to arbitration or other methods of alternative dispute resolution). 

3. The command of military forces. 

4. Combat. 

5. Security provided under any of the circumstances set out below. This provision should 

not be interpreted to preclude contractors taking action in self-defense or defense of 

others against the imminent threat of death or serious injury. (a) Security operations 

performed in direct support of combat as part of a larger integrated armed force. (b) 

Security operations performed in environments where, in the judgment of the responsible 

Federal official, there is significant potential for the security operations to evolve into 

combat. (c) Security that entails augmenting or reinforcing others (whether private 

security contractors, civilians, or military units) that have become engaged in combat. 

6. The conduct of foreign relations and the determination of foreign policy. 

7. The determination of agency policy, such as determining the content and application of 

regulations. 

8. The determination of budget policy, guidance, and strategy. 

9. The determination of Federal program priorities or budget requests. 

10. The selection or non-selection of individuals for Federal Government employment, 

including the interviewing of individuals for employment. 

11. The direction and control of Federal employees. 

12. The direction and control of intelligence and counter-intelligence operations. 

13. The approval of position descriptions and performance standards for Federal employees. 

14. The determination of what government property is to be disposed of and on what terms 

(although an agency may give contractors authority to dispose of property at prices with 

specified ranges and subject to other reasonable conditions deemed appropriate by the 

agency). 

15. In Federal procurement activities with respect to prime contracts: 

(a) determining what supplies or services are to be acquired by the government 

(b) participating as a voting member on any source selection boards; 

(c) approving of any contractual documents, including documents defining requirements, 

incentive plans and evaluation criteria; 

(d) determining that prices are fair and reasonable; 

(e) awarding contracts; 

(f) administering contracts (including ordering changers in contact performance or 

contact quantities, making final determinations about a contractor’s performance, 

including approving award fee determinations or past performance evaluations and 

taking action based on those evaluations, and accepting or rejecting contractor 

products or services); 

(g) terminating contracts 

(h) determining whether contact costs are reasonable, allocable, and allowable; 

(i) And participating as a voting member on performance evaluation boards. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough44
Enclosure 1 

16. The selection of grant and cooperative agreement recipients including: (a) approval of 

agreement activities; (b) negotiating the scope of work to be conducted under 

grants/cooperative agreements; (c) approval of modifications to grant/cooperative 

agreement budgets and activities; and (d) performance monitoring. 

17. The approval of agency responses to Freedom of Information Act requests (other than 

routine responses that, because of statute, regulation, or agency policy, do not require the 

exercise of judgment in determining whether documents are to be released or withheld), 

and the approval of agency response to the administrative appeals of denials of Freedom 

of Information Act requests. 

18. The conduct of administrative hearings to determine the eligibility of any person for a 

security clearance, or involving actions that affect matters of personal reputation or 

eligibility to participate in government programs. 

19. The approval of Federal licensing actions and inspections. 

20. The collection, control, and disbursement of fees, royalties, duties, fines, taxes and other 

public funds, unless authorized by statute, such as title 31 Untied States Code section 952 

(relating to private collection contractors) and title 31 United States Code section 3718 

(Relating to private attorney collection services), but not including (a) collection of fees, 

fines, penalties, costs or other charges form visitors to or patrons of mess halls, post or 

base exchange concessions, national parks, and similar entities or activities, or from other 

persons, where the amount to be collected is predetermined or can be readily calculated 

and the funds collected can be readily controlled using standard cash management 

techniques; and (b) routine voucher and invoice examination. 

21. The control of the Treasury accounts. 

22. The administration of public trusts. 

23. The drafting of official agency proposals for legislation, Congressional testimony 

responses to Congressional correspondence, or responses to audit reports from an 

inspector general, the Government Accountability Office, or other Federal audit entity. 

24. Representation of the government before administrative and judicial tribunals, unless 

statute expressly authorizes the use of attorney whose services are procured through 

contract. 

Statutory Restrictions on Contracting 

(Title 10 United States Code Section 2465) 

(a) Except as provided in subsection (b), funds appropriated to Department of Defense may 

not be obligated or expended for the purpose of entering into a contract for the 

performance of fire-fighting or security-guard functions at any military installation or 

facility. 

(b) The prohibition in subsection (a) does not apply to the following contracts: 

(1) A contract to be carried out at a location outside the United States (including its 

commonwealths, territories, and possessions) at which members of the armed forces 

would have to be used for the performance of a function described in subsection (a) at 

the expense of unit readiness. 

(2) (2) A contract to be carried out on a Government-owned but privately operated 

installation. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough45
Enclosure 1 

(3) A contract (or the renewal of a contract) for the performance of a function under 

contract on September 24, 1983. 

(4) A contract for the performance of firefighting functions if the contract is- 

(A) for a period of one year or less; and 

(B) covers only the performance of firefighting functions that, in the absence of 

the contract, would have to be performed by members of the armed forces 

who are not readily available to perform such functions by reason of a 

deployment. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough46
Enclosure 2 

Non-Exhaustive Examples of Closely Associated With Inherently Governmental Functions 

(Extract from Office of Federal Procurement Policy Letter 11-1 (September 12, 2011) 

 

1. Services in support of inherently governmental functions, including, but not limited to the 

following: 

a. Performing budget preparation activities, such as workload modeling, fact 

finding, efficiency studies, and should-cost analysis. 

b. Undertaking activities to support agency planning and reorganization. 

c. Providing support for developing policies, including drafting documents, and 

conducting analyses, feasibility studies, and strategy options. 

d. Providing services to support the development of regulations and legislative 

proposals pursuant to specific policy direction. 

e. Supporting acquisition, including in the areas of: 

i. Acquisition planning, such as by conducting market research; developing 

inputs for government cost estimates, and drafting statements of work and 

other pre-award documents. 

ii. Source selection, such as by preparing a technical evaluation and 

associated documentation; participating as a technical advisor to a source 

selection board or as a nonvoting member of a source selection evaluation 

board; and drafting the price negotiations memorandum. 

iii. Contract management, such as by assisting in the evaluation of a 

contractor’s performance (e.g. by collecting information performing an 

analysis, or making a recommendation for a proposed performance rating), 

and providing support for assessing contract claims and preparing 

termination settlement documents. 

f. Preparation of responses to Freedom of Information Act requests. 

2. Work in a situation that permits or might permit access to confidential business 

information or other sensitive information (other than situations covered by the National 

Industrial Security Program described in Federal Acquisition Regulation 4.402(b)). 

3. Dissemination of information regarding agency policies or regulations, such as 

conducting community relations campaigns, or conducting agency training courses. 

4. Participation in a situation where it might be assumed that participants are agency 

employees or representatives, such as attending conferences on behalf of an agency. 

5. Services as arbitrators or provision of alternative dispute resolution (ADR) services. 

6. Construction of buildings or structures intended to be secure form electronic 

eavesdropping or other penetration by foreign governments. 

7. Provision of inspection services. 

8. Provision of legal advice and interpretations of regulations and statutes to government 

officials. 

9. Provision of non-law enforcement security activities that do not directly involve criminal 

investigations, such as prisoner detention or transport and non-military national security 

details. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough47
Enclosure 3 

Examples of Military Essential Functions 

 (summarized from DoD Instruction 1100.22) 

1. Missions involving operational risks and combatant status under the Law of War. 

2. Specialized collective and individual training requiring military unique knowledge and 

skills based on recent operational experience 

3. Independent advice to senior civilian leadership in Department requiring military unique 

knowledge and skills based on recent operational experience 

4. Command and control arrangements best performed within the Uniform Code of Military 

Justice. 

5. Rotation base for an operational capability. 

6. Career progression. 

7. Esprit de corps (such as military recruiters, military bands) 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough48
THE WHITE HOUSE 

Office of the Press Secretary 

 

For Immediate Release March 1, 2013 

SEQUESTRATION ORDER FOR FISCAL YEAR 2013 PURSUANT 

TO SECTION 251A OF THE BALANCED BUDGET AND 

EMERGENCY DEFICIT CONTROL ACT, AS AMENDED 

 By the authority vested in me as President by the laws 

of the United States of America, and in accordance with 

section 251A of the Balanced Budget and Emergency Deficit 

Control Act, as amended (the "Act"), 2 U.S.C. 901a, I hereby 

order that budgetary resources in each non-exempt budget account 

be reduced by the amount calculated by the Office of Management 

and Budget in its report to the Congress of March 1, 2013. 

Pursuant to sections 250(c)(6), 251A, and 255(e) of the 

Act, budgetary resources subject to sequestration shall be new 

budget authority, unobligated balances of defense function 

accounts carried over from prior fiscal years, direct spending 

authority, and obligation limitations. 

All sequestrations shall be made in strict accordance with 

the requirements of section 251A of the Act and the 

specifications of the Office of Management and Budget's report 

of March 1, 2013, prepared pursuant to section 251A(11) of the 

Act. 

 BARACK OBAMA 

THE WHITE HOUSE, 

 March 1, 2013. 

 # # # 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough49
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough50

SECRETARY OF DEFENSE 

1000 DEFENSE PENTAGON 

WASHINGTON, DC 20301-1000 

MAY 1 4 Z013 

MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS 

CHAIRMAN OF THE JOINT CHIEFS OF STAFF 

UNDER SECRET ARIES OF DEFENSE 

SUBJECT: Furloughs 

DEPUTY CHIEF MANAGEMENT OFFICER 

CHIEFS OF THE MILITARY SERVICES 

CO~ERSOFTHECOMBATANTCOMMANDS 

CHIEF OF THE NATIONAL GUARD BUREAU 

DIRECTOR, COST ASSESSMENT AND PROGRAM 

EVALUATION 

DIRECTOR, OPERATIONAL TEST AND EVALUATION 

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE 

INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE 

ASSISTANT SECRETARIES OF DEFENSE 

DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER 

ASSISTANTS TO THE SECRETARY OF DEFENSE 

DIRECTOR, ADMINISTRATION AND MANAGEMENT 

DIRECTOR, NET ASSESSMENT 

DIRECTORS OF THE DEFENSE AGENCIES 

DIRECTORS OF THE DOD FIELD ACTIVITIES 

This memo directs defense managers to prepare to furlough most Department of Defense 

(DoD) civilians for up to 11 days. The schedule for furloughs, and some specific exceptions, are 

described later in this memo and in the attachment. I have made this decision very reluctantly, 

because I know that the furloughs will disrupt lives and impact DoD operations. I, along with 

the senior civilian and military leadership of the Department, have spent considerable time 

reviewing information related to the need for furloughs, and I would like to share with you the 

reasoning that led me to this difficult decision. 

Major budgetary shortfalls drove the basic furlough decision. On March 1, sequestration 

went into effect across the federal government. DoD's budget for FY 2013 was reduced by $37 

billion, including $20 billion in the operation and maintenance (O&M) accounts that pay many 

of our civilian workers. In addition, because our wartime budget is also subject to sequestration, 

we must utilize funds originally budgeted for other purposes in order to provide our troops at war 

with every resource they need. To compound our problems, when we estimated future wartime 

operating costs more than a year ago, we planned on fuel costs below what we are currently 

experiencing. Taken together, all these factors lead to a shortfall in our O&M accounts of more 

than $30 billion- a level that exceeds 15 percent of our budget request, with fewer than six 

months left in the fiscal year in which to accommodate this dramatic reduction in available 

resources. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough51

We are taking actions to reduce this shortfall. One main priority bas governed our 

decisions: to minimize the adverse effects on our military mission, including military readiness. 

With this in mind, early this calendar year we cut back sharply on facilities maintenance and 

worked to hold down base operating costs -- decisions we knew would build a backlog of 

maintenance and adversely affect our bases. We are also preparing a request to Congress that 

would permit us to shift some funding from investment and military personnel accounts into the 

O&M accounts. If approved by Congress, this initiative- known as a reprogramming- would 

help close the gap. 

But these actions are not enough. We have begun making sharp cuts in the training and 

maintenance of our operating forces -cutbacks that are seriously harming military readiness. 

The Army, for example, has terminated most remaining FY 2013 training rotations at its combat 

training centers. The Air Force has or soon will stop all flying at about one-third of its combatcoded squadrons in the active forces. The Navy and Marine Corps are cutting back on training 

and on deployments- including a decision not to send a second carrier strike group to the Gulf. 

These are only a few of the many cutbacks we have made in training and maintenance. These 

actions reduce our ability to handle future military contingency needs, both this year and in 

subsequent years. 

Even after taking all these actions, we are still short of needed operating funds for FY 

2013, and we cannot rule out unexpected increases in costs during the next few months. So we 

confront a difficult set of trade offs. We can make even larger cutbacks in training and 

maintenance, further reducing readiness to handle contingency operations and putting into even 

greater jeopardy our military readiness in future fiscal years. Alternatively, we can furlough 

civilian personnel to help close the gap and, knowing that morale, productivity and readiness 

would be affected. This is an unpleasant set of choices, but this is the situation we face. 

Before making a decision, I sought advice and inputs from senior leaders in the military 

departments and agencies as well as advice from my senior civilian and military staff. I asked 

them to keep in mind our fundamental criterion to minimize adverse mission effects and, subject 

to that criterion, to ensure reasonable consistency and fairness across the Department for any 

furloughs that we impose. 

Based on all these inputs, I have decided to direct furloughs of up to 11 days for most of 

the Department's civilian personnel. Furloughs for up to II days represent about half of the 22 

days that can legally be imposed in a year and also about half the number we had originally 

planned. This halving of previous furlough plans reflects vigorous efforts to meet our budgetary 

shortfalls through actions other than furloughs as well as Congressional passage of an 

appropriations bill in late March that reduced the shortfalls in our operating budget and 

expectations of Congressional action on our reprogramming request. 

Furloughs will be imposed in every military department as well as almost every agency 

and in our working capital funds. All of our civilian employees are important, and I would 

prefer not to furlough any of them. However, there will only be limited exceptions driven by law 

and by the need to minimize harm to mission execution. We will except civilians deployed to 

combat zones and civilians necessary to protect life and property (but only to the extent needed 

to provide that protection). A few categories of workers will be excepted for specific mission 

reasons while some categories of workers will be excepted because furloughing them would not 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough52

free up money for critical DoD mission needs. The attachment provides details regarding 

approved exceptions. Fewer than one fifth of all civilians paid with appropriated funds will be 

excepted from furloughs. 

The planning and implementation of furloughs will be carried out based on the schedule 

below: 

• May 28- June 5: Furlough proposal notices will be served to individual employees 

subject to furloughs. 

• June 4- June 12: Individual employee reply periods end 7 calendar days from when 

the proposal was received, unless Component procedures allow for a different reply 

period. 

• June 5 -July 5: Furlough decision letters will be served to individual employees 

subject to furloughs, depending on when the proposal was received and prior to the 

first day of furlough. 

• July 8: Furlough period begins no earlier than this date. 

We will begin furloughs on July 8 at the rate of 1 furlough day per week for most 

personnel. For now, we plan to continue furloughs through the end of FY 2013. That schedule 

would lead to 11 furlough days- one fifth of the week for about one quarter of the year. 

Moreover, I am directing all components to monitor funding closely for the remainder ofFY 

2013. If our budgetary situation permits us to end furloughs early, I would strongly prefer to do 

so. That is a decision I will make later in the year. 

Consistent with this memo and with applicable laws and rules, commanders and 

managers will have the authority to develop the specifics of furlough procedures in order to 

minimize adverse mission effects and also limit the harm to morale and productivity. Further 

bargaining with unions may also be required. The Under Secretary for Personnel and Readiness 

has already issued guidance as appropriate regarding personnel and union issues related to 

furloughs and will issue additional guidance as needed. Overall coordination of sequester and 

furlough policies will be the responsibility of the Under Secretary of Defense (Comptroller). 

Each of the Department's civilian employees makes an important contribution to the 

readiness of our Department to meet the nation's national security needs. I understand that the 

decision to impose furloughs imposes financial burdens on our valued employees, harms overall 

morale, and corrodes the long-term ability of the Department to carry out the national defense 

mission. I deeply regret this decision. I will continue to urge that our nation's leaders reach an 

agreement to reduce the deficit and de-trigger sequestration. If no agreement is reached, I will 

continue to look for ways to limit the adverse effects of sequestration and associated budgetary 

shortfalls both on the men and women of the Department of Defense, and on our national 

defense. 

Attachment: 

As stated. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough53

Department of Defense Furlough Exceptions 

This attachment provides Components with final dispositions on categorical exceptions to 

the Department of Defense (DoD) plan to furlough civilian employees for a maximum of 88 

hours or 11 discontinuous workdays because of the current financial crisis caused by a 

sequestration for Fiscal Year (FY) 2013, increased costs for ongoing Overseas Contingency 

Operations, and other emerging requirements. In order to minimize adverse effects on mission, 

employees in the following categories are excepted from furlough for the reasons noted: 

a) In order to avoid harm to war efforts, all employees deployed (in a Temporary Duty status) 

or temporarily assigned (to include Temporary Change of Station) to a combat zone (as 

defined in notes below) are excepted from furlough. 

b) In order to avoid harm to mission, those employees necessary to protect safety of life and 

property are excepted to the extent necessary to protect life and property. This includes 

selected medical personnel. Later portions of this attachment provide details. 

c) Employees in Navy shipyards will be excepted from furlough because it would be 

particularly difficult to make up delays in maintenance work on nuclear vessels and these 

vessels are critical to mission success. All other depot employees, whether mission-funded 

or working capital fund employees, will be subject to furlough. 

d) Furloughs for employees funded with National Intelligence Program (NIP) funds will be 

determined by the Director ofNational Intelligence. Employees funded with Military 

Intelligence Program (MIP) funds will be subject to furlough. 

e) Because there would be no savings, Foreign Military Sales (FMS) employees whose 

positions are exclusively funded from FMS Administrative and FMS case funds (case 

number may be required to validate funding source) and from Foreign Military Financing 

accounts are excepted from furlough. Furloughing employees in this category would not 

reduce the expenditure of DoD budgetary resources and so would not assist in meeting 

sequestration reductions. The FMS case-funded positions funded in whole or part by DoD 

appropriations (to include "pseudo-FMS" cases) are subject to furlough. 

f) By law, all individuals appointed by the President, with Senate confirmation, who are not 

covered by the leave system in title 5, U.S. Code, chapter 63, or an equivalent formal leave 

system, are excepted from furlough. 

g) All employees funded by non-appropriated funds (NAF) 1 (regardless of source ofNAF 

funding) are excepted from furlough. Furloughing employees in this category would not 

reduce the DoD budget and so would not assist in meeting sequestration reductions. 

h) All Outside Contiguous United States foreign national employees, many of whom are subject 

to Status of Forces Agreements, are excepted from furlough because their situation vary 

greatly by country/region and because, in some cases, they are paid by host governments. 

1 NAF employees are not covered by the requirements and procedures applicable to furloughs of appropriated fund 

employees under FY13 sequestration. However, NAF employees may be furloughed under DoD NAF and 

Component policies and procedures for business-based reasons. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough54

i) Any employees who are not paid directly by accounts included in the Department of 

Defense-Military (subfunction 051) budget are excepted from furlough. For example, this 

would include employees funded by the Arlington National Cemetery (705 function) and 

DoD Civil Works (various non-051 functions) programs. These exceptions have been 

identified by the Components. Furloughing these employees would not reduce the 

expenditure of DoD budgetary resources and so would not assist in meeting sequestration 

reductions. 

The following portion of this document provides the definitive list of additional approved 

exceptions beyond those listed in the preceding paragraph. The exceptions approved for the 

safety of life and protection of property category are granted with the understanding that these 

are the minimum exceptions needed to maintain operations and provide security on a 24/7 basis 

and that furloughing these employees would result in the Department incurring additional costs 

for premium pay. Similarly, the exceptions for the medical category are approved with the 

understanding these exceptions preserve the minimwn level of personnel needed to maintain 

quality of care in 24/7 emergency rooms and other critical care areas such as behavioral health, 

wounded warrior support, and disability evaluation. Furloughing these employees would result 

in unacceptable care being provided, and the Department would incur increased costs for 

premiwn pay or TRICARE. The exception for Child Development Centers is granted with the 

understanding that this is the minimum level needed to maintain accreditation and maintain 

quality care for children in military families. Some Department of Defense Education Activity 

employees, while not excepted from furlough, may only be furloughed when they are in a pay 

status. Therefore, they will only be subject to furlough for up to five days at the beginning of the 

2013 school year. 

Recognizing that circumstances can change in this dynamic environment, the Secretaries 

of the Military Departments, and the Principal Staff Assistants for the Defense Agencies and 

Field Activities, may approve up to 50 additional individual, mission-based, exceptions as 

needed to ensure safe and efficient operations of their respective Departments. Any such 

exception must be reported to the Acting Under Secretary of Defense (USD) for Personnel and 

Readiness and the USD Comptroller. There are no other approved exceptions provided based on 

the Components' submissions. Furlough proposal notices should be issued to all impacted 

employees beginning May 28, 2013. 

Relative to the review and decision on individual employee requests for exception, per 

guidance issued via the Principal Deputy Assistant Secretary of Defense, Readiness and Force 

Management, memorandum, dated March 13, 2013, activities should designate the Deciding 

Official. The designated Deciding Official will be no lower than a local Installation Commander, 

senior civilian or equivalent who would be in the best position to determine the fair and equitable 

application of the furlough. Deciding Official responsibilities may not be further delegated. 

Deciding Officials are charged with, and are accountable for, making final decisions on furloughs 

for individual employees after carefully considering the employee's reply, if any, and the needs of 

the Department. Deciding Officials must also ensure they make final decisions in cases where an 

employee does not submit a reply. Deciding Officials will have the authority to execute the full 

range of options with respect to providing relief in individual employee cases. This authority 

includes, but is not limited to, reducing the nwnber of days/hours an individual employee is 

furloughed, or granting the individual employee an exception from the furlough altogether. 

2 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough55

Component Safety of Medical Others Comments 

Life& Personnel 

Property 

DoN 7,543 1,418 212 CIVPERS CIVPERS deployed at sea 

at Sea are subject to furlough upon 

return from deployment 

4,712 CIVMARS are subj ect to 

CIVMARS furlough upon return from 

deployment 

514 Maintain safety standards 

Appropriated and quality of care 

Fund (APF) 

Child 

Development 

Centers 

(CDCs) 

15 Support to classified 

programs 

28,000 Shipyard Workers, General 

1,657 Shipyard Workers, Nuclear 

and Naval Reactors Staff 

USA 263 Up to 555 APF Maintain safety standards 

6,600 CDC and quality of care 

Employees 

75 ARNG Dual Status 

Technicians for Alerts, 

Firefighting, Personnel 

Recovery and other 

missions 

17 Support to classified 

programs 

257 Non-immigrant employees 

requiring H-1 B visas at 

Defense Language Institute 

3 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough56

Component Safety of Medical Others Comments 

Life& Personnel 

Property 

USAF 933 410 62 Support to classified 

programs 

1,123 ANG Dual Status 

Technicians for Alerts, 

Firefighting, Personnel 

Recovery and other 

missions 

30 Students Intel School & FLETC 

94 Multi-IOC Heating/Waste Water Plant 

24/7 Plant minimum safe manning 

Operators 

2 Contingency Planners 

3 Special Law Enforcement 

Pay 

1,634 APF Maintain safety standards 

CDCs and quality of care 

DLA 363 

DA&M 623 546 are from the Pentagon 

Force Protection Agency; the 

remaining 77 are Washington 

Headquarters Services for 

Pentagon safety and emergency 

communications. 

Most will be furloughed fewer 

than 11 days due to the need to 

maintain operations and 

security 24/7. 

US Court of 59 The Chief Judge will decide 

Appeals for how many days to furlough 

Armed Services employees, if at all. 

JTFCAPMED 368 165 @ Walter Reed 

203 @ Fort Belvoir 

4 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough57

Component Safety of Medical Others Comments 

Life & Personnel 

Property 

USUHS 22 Animal Husbandry Technicians 

5 Non-immigrant employees 

requiring H-IB visas 

Office of the 9 Civilian Trial Practitioners 

Military 

Commissions -

Defense Legal 

Services 

Agency 

Department of 10,950 9-month DoDEA employees, 

Defense which includes teachers, 

Education educational aids, and support 

Activity staff may only be furloughed 

(DoDEA) for up to 5 days at the 

beginning ofthe 2013 school 

year. 

DCAA 1 Non-immigrant employees 

requiring H-1 B visa 

Notes: 

1. Safety of life and property exceptions are based on need for 24/7 coverage in most instances. 

It is expected all Components will furlough for less than 88 hours in these areas where 

feasible. 

2. Individuals for whom law enforcement premium pay would result in no loss of pay if 

furloughed will be excepted from the furlough. 

3. 20 CFR 655.731 requires that the employer of a H-lB non-immigrant who is not performing 

work and is placed in a nonproductive status due to a decision by the employer (e.g., placed 

in a non-pay/non-duty status due to administrative furlough) pay the salaried employee the 

full pro-rata amount due, or to pay the hourly-wage employee for a full-time week (40 hours 

or such other number of hours as the employer can demonstrate to be full-time employment 

for hourly employees, or the full amount of the weekly salary for salaried employees) at the 

required wage for the occupation. 

5 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough58

I. References. 

a) Title 26, U.S. Code, Section 112, Certain combat zone compensation of members of the 

Armed Forces 

b) Executive Order 12744, January 21, 1991 

c) Executive Order 13119, Apri~ 13, 1999 

d) Executive Order 13239, December 12, 2001 

e) Public Law 104-117, To provide that members of the Armed Forces performing services 

for peacekeeping efforts in Bosnia and Herzegovina, Croatia, and Macedonia shall be 

entitled to tax benefits in the same manner as if such services were performed in a combat 

zone. 

2. The following locations are designated as "Combat Zones" by law, Presidential Executive 

Order or by DoD certification that members of the Armed Forces serving in such locations are 

serving in direct support of military operations in a combat zone: 

Countries: 

Afghanistan (EO 13239) 

Albania (EO 13119) 

Bahrain (EO 12744) 

Bosnia (PL 1 04-117) 

Djibouti (DoD certification) 

Iraq (EO 12744) 

Kuwait (EO 12744) 

Macedonia (PL 1 04-1170) 

Oman (EO 12744) 

Philippines (Only troops with orders 

referencing Operation Enduring Freedom) 

(DoD certification) 

Saudi Arabia (EO 12744) 

Somalia (DoD certification) 

6 

United Arab Emirates (EO 12744) 

Uzbekistan (DoD certification) 

Yemen (DoD certification) 

Croatia (PL 1 04-117) 

Herzegovina (PL 1 04-117) 

Jordan (DoD certification) 

Kyrgyzstan (DoD certification) 

Montenegro (EO 13119) 

Pakistan (DoD certification) 

Qatar (EO 12744) 

Serbia (includes Kosovo) (EO 13119) 

Tajikistan (DoD certification) 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough59

Sea Areas: 

Adriatic Sea (EO 13119) 

Gulf of Aden (EO 12744) 

Ionian Sea north of the 39th Parallel (EO 13119) 

Red Sea (EO 12744) 

That portion of the Arabian Sea that 

lies north of 10 degrees north latitude, 

and west of 68 degrees east longitude 

(EO 12744) 

Gu1fof0man (EO 12744) 

Persian Gulf (EO 12744) 

3. Adherence to the following principles ensures consistency in applying the "deployed to 

combat zone" exemption to civilian employees in the context of the administrative furlough: 

a) "Deployed civilian" is defined as a civilian employee who is deployed (in temporary duty 

(TDY) status) or temporarily assigned (to include temporary change of station (TCS)) to 

a "combat zone'' as set forth above. 

b) "Combat zone" is defined as those locations listed as combat zones in Executive Orders 

12744, 13119 or 13239 and locations where military are eligible for combat zone tax 

benefits under law or because DoD has certified that they are providing direct support to 

military operations. 

c) A "deployed civilian's" period of deployment includes time spent in attendance at 

mandatory pre-deployment training as well as in completing mandatory post-deployment 

requirements. 

d) A civilian employee who was deployed to a combat zone but redeploys mid-way through 

the furlough period will receive a notice of proposed furlough upon return to their parent 

organization and prior to any furlough. Further, the number of hours for which the 

employee will be furloughed will be pro-rated. 

7 
*EMBARGOED FROM PUBLIC/PRESS RELEASE* 

*UNTIL 1430 HRS, 14 MAY 2013* 

MESSAGE FROM SECRETARY HAGEL ON FURLOUGHS

TUESDAY, MAY 14, 2013

To all Department of Defense personnel:

As you are fully aware, the Department of Defense is facing a historic 

shortfall in our budget for the current fiscal year. This is the result of current law 

that went into effect March 1. It imposes deep across-the-board cuts on DoD and 

other federal agencies. Combined with higher than expected wartime operating 

costs, we are now short more than $30 billion in our operation and maintenance

(O&M) accounts – which are the funds that we use to pay most civilian employees, 

maintain our military readiness, and respond to global contingencies.

The Department has been doing everything possible to reduce this shortfall 

while ensuring we can defend the nation, sustain wartime operations, and preserve 

DoD’s most critical asset – our world-class civilian and military personnel. To that 

end, we have cut back sharply on facilities maintenance, worked to shift funds 

from investment to O&M accounts, and reduced many other important but nonessential programs.

Still, these steps have not been enough to close the shortfall. Each of the 

military services has begun to significantly reduce training and maintenance of 

non-deployed operating forces – steps that will adversely impact military 

readiness. And even these reductions are not enough. Since deeper cuts to training 

and maintenance could leave our nation and our military exposed in the event of an 

unforeseen crisis, we have been forced to consider placing the majority of our 

civilian employees on administrative furlough. 

After extensive review of all options with the DoD’s senior military and 

civilian leadership on how we address this budget crisis, today I am announcing 

that I have decided to direct furloughs of up to 11 days for most of the 

Department’s civilian personnel. I have made this decision very reluctantly, 

because I know that the furloughs will disrupt lives and impact DoD operations. I 

recognize the significant hardship this places on you and your families. 

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough60
 

After required notifications, we will begin the furlough period on July 8 at 

the rate of one furlough day per week for most personnel. We plan to continue 

these furloughs through the end of the current fiscal year. If our budgetary 

situation permits us to end furloughs early, I would strongly prefer to do so. That 

is a decision I will make later in the year.

Furloughs for 11 days represent about half of the number we had originally 

planned, reflecting the Department’s vigorous efforts to meet our budgetary 

shortfalls through actions other than furlough. There will be exceptions driven by 

law and by the need to minimize harm to the execution of our core missions. For 

example, all employees deployed or temporarily assigned to a combat zone will be 

excepted from furloughs. 

Your managers have been given authority to develop specific furlough 

procedures to minimize adverse mission effects and also limit the harm to morale 

and productivity. They will be in touch with you to provide guidance and answers. 

 

The President and I are deeply appreciative of your patience, your hard 

work, and your dedication and contributions to the critical mission of helping 

protect America’s national security. I am counting on all of you to stay focused on 

this vital mission in the days ahead. As I said the day I assumed the 

responsibilities of Secretary of Defense, I’m proud to be part of your team and I’m 

proud to serve with you.

# # #

Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough61
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough62

SAMR 

DEPARTMENT OF THE ARMY 

OFFICE OF THE ASSISTANT SECRETARY 

MANPOWER AND RESERVE AFFAIRS 

111 ARMY PENTAGON 

WASHINGTON, DC 2031()..()111 

MEMORANDUM FOR SEE DISTRIBUTION 

MAY 1 7 2013 

SUBJECT: Department of the Army Fiscal Year 2013 Administrative Furlough 

This memorandum supersedes reference 1.c., below and is issued for planning and 

execution. 

1 . References: 

a. Secretary of Defense memorandum, 14 May 2013, subject: Furloughs. 

b. U.S. Office of Personnel Management Guidance for Administrative Furloughs, as 

amended. 

c. Assistant Secretary of the Army (Manpower and Reserve Affairs) memorandum, 20 

March 2013, subject: Department of the Army Administrative Furlough Planning 

(rescinded). 

2. Reference 1.a. announced the Secretary of Defense decision to require an 

administrative furlough of the Department of Defense (DoD) civilian workforce in Fiscal 

Year (FY) 2013. An administrative furlough differs from an emergency or government 

shutdown furlough which occurs when there is a lapse in appropriations. But both types of 

furlough place employees in a temporary no-pay, non-duty status because of lack of work 

or funds, or for other non-disciplinary reasons. Administrative furloughs of up to 22 

workdays are considered adverse actions. Reference 1.b. provides information about 

administrative furloughs. 

3. This memorandum constitutes the Secretary of the Army's authorization to issue 

notices of proposed furlough and proceed to execute the furlough in accordance with 

reference 1.a. and this memorandum. It is the intent of DoD and the Army that all 

employees be furloughed, with extremely limited exceptions, in order to maximize cost 

savings. Accordingly, the Army intends to furlough all civilian employees for up to 88 

hours, or 11 workdays, prior to the end of FY 2013, unless an employee is excepted from 

furlough as set forth in: reference 1.a.; paragraphs 4 through 6, below; or as authorized by 

the Secretary of the Army. Employees who were previously identified as "excepted" or 

"exempf' from past government shutdown furloughs are not automatically excepted from 

the current administrative furlough. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough63

SAMR 

SUBJECT: Department of the Army Fiscal Year 2013 Administrative Furlough 

4. Pursuant to my authority under provisions of Title 10, U.S. Code, Section 3016, and at 

the direction of the Secretary of the Army, I hereby designate: the Commanders of Army 

Commands, Army Service Component Commands and Direct Reporting Units (DRU); the 

Commanders of U.S. European Command, U.S. Forces Korea, U.S. Southern Command, 

U.S. Africa Command and Joint Special Operations Command; and the Administrative 

Assistant to the Secretary of the Army for Headquarters, Department of the Army (HQDA), 

as Deciding Officials for purposes of the adverse action process associated with the FY 

2013 administrative furlough. 

a. For purposes of the adverse action process associated with the FY 2013 

administrative furlough and the administration of the restrictions on overtime work set forth 

in this memorandum, the Administrative Assistant to the Secretary of the Army will 

exercise authority, direction and control over the personnel of the following organizations 

as if they were part of HQDA: 

(1) Armed Services Board of Contract Appeals; 

(2) DoD Explosives Safety Board; 

(3) Joint Improvised Explosive Device Defeat Organization; 

(4) Special Inspector General for Iraq Reconstruction; 

(5) Special Inspector General for Afghanistan Reconstruction; and 

(6) Military Entrance Processing Command. 

b. Civilian employees of the Office of the Chief, Army Reserve (an HQDA Principal 

Official), who are associated with Unit Identification Code WOZ4AA, are considered a part 

of HQDA. By reference 1.a., the Secretary of Defense authorized the Chief, National 

Guard Bureau to exercise independent furlough authority for personnel of the National 

Guard Bureau. In accordance with DoD Directive 5105.77, National Guard Bureau, 

paragraph 7.1, the Chief, National Guard Bureau may develop and promulgate 

publications on National Guard matters, consistent with DoD and Department of the Army 

policies. Accordingly, the policies set forth in reference 1.a. and this memorandum should 

be applied in administering the furlough and related matters for Department of the Army 

civilian employees associated with National Guard Bureau Unit Identification Codes 

WOOQAA, W39LAA, W36V AA and W3G2AA. 

c. As authorized by the Secretary of the Army, for purposes of the FY 2013 

administrative furlough and the restrictions on overtime work set forth in this memorandum, 

a DRU led by a civilian employee will be considered an HQDA organization or activity 

subject to the authority, direction and control of the HQDA Principal Official to whom the 

DRU reports. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough64

SAMR 

SUBJECT: Department of the Army Fiscal Year 2013 Administrative Furlough 

d. As Deciding Officials in the context of the adverse action process associated with 

the FY 2013 administrative furlough, the officials designated as Deciding Officials in 

paragraph 4, above are hereby empowered to issue final furlough decisions to: 

(1) except from furlough any individual employee in the grade of GS-15 (and 

equivalents) and below; and 

(2) limit to less than 88 hours or 11 workdays the number of hours/days that any 

full-time individual employee in the grade of GS-15 (and equivalents) and below will be 

furloughed before the end of FY 2013. 

e. Deciding Officials are charged with, and are accountable for, making final decisions 

on furloughs for individual employees based on the efficiency of the Service 1

, after 

carefully considering the employee's reply, if any, and the needs of the Department of the 

Army. Deciding Officials must also ensure they make final decisions in cases in which an 

employee does not submit a reply. Deciding Officials will have the authority to execute the 

full range of options with respect to providing relief in individual employee cases. This 

authority includes, but is not limited to, reducing the number of hours/days an employee 

will be furloughed, or granting the individual employee an exception from the furlough 

altogether. 

f. Deciding Officials may recall an employee from furlough (resulting in an overall 

reduction in the number of FY 2013 furlough hours for that employee) only as necessary to 

protect the health, safety and security of personnel or property; to ensure the direct and 

timely provision of services and materiel to deployed units or to units that are preparing to 

deploy; or to perform similar mission critical functions. No additional funds will be 

authorized for furlough recall. 

5. The officials designated as Deciding Officials in paragraph 4, above, may designate as 

a Deciding Official(s) for purposes of the adverse action process associated with the FY 

2013 administrative furlough, one or more military officers or senior civilians under their 

supervision in grades no lower than Colonel or GS-15 (or equivalents). Designated 

individuals may subsequently designate as Deciding Officials other military officers or 

senior civilians serving under their supervision (also in grades no lower than Colonei/GS15 (or equivalents)). No person lower than Colonei/GS-15 (or equivalents) may be 

designated as a Deciding Official. An individual may be designated as a Deciding Official 

in accordance with this paragraph only when such individuals would be in the best position 

to determine the fair and equitable application of the furlough to employees. Required as 

part of the designation of a Deciding Official is a re-delegation to that individual of the 

authorities enumerated in paragraph 4, above. 

1 5 U.S.C. § 7513 (a); see Hatfield v. Department of the Interior, 28 M.S. P.R. 673, 675 (1985) ("[a]n adverse 

action promotes the efficiency of the service when the grounds for the action relate to either an employee's 

ability to accomplish his duties satisfactorily or to some other legitimate government interest."). 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough65

SAMR 

SUBJECT: Department of the Army Fiscal Year 2013 Administrative Furlough 

6. Any designation as a Deciding Official and re-delegation of the requisite authorities will 

take effect only when it is in writing and signed by the designating official. I will hold each 

of the officials designated as Deciding Officials in paragraph 4, above, responsible for any 

and all actions he or she takes as a Deciding Official, including the exercise of authorities 

inherent in such a designation, and for any actions taken by individuals under his/her 

supervision who are subsequently designated as Deciding Officials. Should conditions 

warrant, any designating official should suspend or rescind a subordinate's designation as 

a Deciding Official, as appropriate. 

7. This memorandum and its Appendices do not apply to employees managed by the 

Civilian Senior Leader Management Office (CSLMO). Separate guidance addressing 

CSLMO-managed employees is forthcoming. 

8. Organizations may not transfer any work from Army civilians to contractors or use 

premium pay (overtime or compensatory time off) to offset federal employee absence due 

to furlough. Organizations are reminded that furloughed employees are prohibited from 

working on-site or on a telework basis during furlough hours/days, and furloughed 

employees may not substitute paid leave or other paid time off for furlough hours/days. 

9. Employee overtime work, whether paid or awarded as compensatory time off, is 

prohibited during the sequester through the end of FY 2013 except as necessary to protect 

the health, safety and security of personnel or property; to ensure the direct and timely 

provision of services and materiel to deployed unit or to units that are preparing to deploy; 

or to perform similar mission critical functions. 

a. These provisions concerning overtime work apply equally to all Army employees, to 

include those excepted from furlough. Overtime work for an employee subject to furlough 

must be approved by an official designated as the Deciding Official for that employee for 

purposes of the FY 2013 furlough. Overtime work for employees not subject to furlough 

must be approved by an official designated as a Deciding Official in paragraph 4, above. 

The officials designated as Deciding Officials in paragraph 4 may delegate the authority to 

approve overtime work for employees excepted from furloughed through the chain of 

command or supervision to an official in a grade no lower than Colonei/GS-15 (or 

equivalents). 

b. Before recommending the approval of overtime work, commanders, supervisors and 

other management officials must make every effort to meet mission requirements by using 

the latitude to adjust (in advance) each employee's scheduled furlough hours/days. All 

other options will be considered before overtime work is authorized; overtime work will be 

approved only when all other options are impracticable. 

c. Any approval of overtime work must be documented in advance of the time and date 

on which the work is to be performed, signed and dated by the appropriate approving 

official and must also set forth: the purpose of the overtime work and the rationale for 

4 
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SUBJECT: Department of the Army Fiscal Year 2013 Administrative Furlough 

concluding that the work meets the above criteria; whether the overtime work will be paid 

or awarded as compensatory time off; and the number of hours of overtime work 

authorized. 

d. I will hold the officials designated as Deciding Officials in paragraph 4, above, 

together with individuals under their supervision with the authority to approve overtime 

work, accountable for managing workload properly and for ensuring that employees are 

not permitted to work overtime in contravention of this policy. 

e. No additional funds will be authorized for overtime work. 

10. Reports. 

a. The officials designated as Deciding Officials in paragraph 4, above, will inform me 

of each grant of an exception from the FY 2013 furlough; decision to limit or reduce 

the number of furlough hours/days to which an employee is subject; or decision to 

recall an employee from furlough that results in an overall reduction in FY 2013 

furlough hours for that employee rendered by that official or any subordinate 

Deciding Official or delegate. Such reports shall be in writing and include a 

description of the action taken and the underlying rationale. Reports will be 

forwarded to me concurrent with the decision at issue. I will compile and submit 

corresponding reports to the Secretary of the Army. 

b. The officials designated as Deciding Officials in paragraph 4, above, will provide 

periodic reports to the Assistant G-1 (Civilian Personnel), Office Deputy Chief of Staff, G-1, 

HQDA as to: 

(1) The number of notices of proposed furlough issued to employees; 

(2) The number of employees to whom notices of proposed furlough were not 

issued because the employee was subject to an approved furlough exception. 

(3) The number of notices of final furlough decisions issued to employees; 

(4) The number of individual furlough exceptions granted through the adverse 

action process. 

The Assistant G-1 (Civilian Personnel) will issue additional guidance and reporting formats 

under separate cover. 

c. Furlough-related actions and the approval of overtime work also will be included in 

the monthly reports presented at the ASA(M&RA) and ASA(FM&C) Civilian Workforce 

Shaping Teleconferences. The content and format for submission of these reports will be 

provided separately. 

5 
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SUBJECT: Department of the Army Fiscal Year 2013 Administrative Furlough 

11. To the fullest extent practicable, management must engage its unions in predecisional discussions regarding the possible actions to be taken with regard to the 

furlough. Additionally, management must fulfill its statutory and contractual labor relations 

obligations in implementing actions addressed in this memorandum. 

12. Both DoD and the Department of the Army will continue to keep you informed as this 

situation develops. It is imperative that we continue to communicate with our workforce 

and labor partners. As we address this difficult and fluid fiscal situation, we want you and 

your employees to know that your patience, hard work and continued dedication are 

deeply appreciated. As conditions change or senior leadership decisions provide clarity or 

modify direction, we will provide you further guidance. 

13. Commands and organizations will execute the furlough in accordance with the 

timelines in Appendix C and with applicable bargaining obligations and agreements. 

Templates for furlough proposal and decision notices, the use of which is mandatory, have 

been disseminated through command human resources channels. 

4 Appendices MONT 

A. General Administrative Furlough 

Guidelines and Procedures 

Assistant Secretary of the Army 

(Manpower and Reserve Affairs) 

B. Civilian Training 

C. Furlough Schedule 

D. Secretary of Defense memo, 14 May 2013 

subject: Furlough 

DISTRIBUTION: 

ADMINISTRATIVE ASSISTANT TO THE SECRETARY OF THE ARMY 

COMMANDER 

U.S. EUROPEAN COMMAND 

U.S. FORCES KOREA 

U.S. SOUTHERN COMMAND 

U.S. AFRICA COMMAND 

JOINT SPECIAL OPERATIONS COMMAND 

U.S. ARMY FORCES COMMAND . 

U.S. ARMY TRAINING AND DOCTRINE COMMAND 

U.S. ARMY MATERIEL COMMAND 

U.S. ARMY PACIFIC 

U.S. ARMY EUROPE 

U.S. ARMY CENTRAL 

(CONT) 

6 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough68

SAMR 

SUBJECT: Department of the Army Fiscal Year 2013 Administrative Furlough 

DISTRIBUTION: (CONT) 

U.S. ARMY NORTH 

U.S. ARMY SOUTH 

U.S. ARMY AFRICA/SOUTHERN EUROPEAN TASK FORCE 

U.S. ARMY SPECIAL OPERATIONS COMMAND 

MILITARY SURFACE DEPLOYMENT AND DISTRIBUTION COMMAND 

U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND/ARMY FORCES STRATEGIC 

COMMAND 

U.S. ARMY NETWORK AND ENTERPRISE TECHNOLOGY COMMAND/9TH SIGNAL 

COMMAND (ARMY) 

U.S. ARMY MEDICAL COMMAND 

U.S. ARMY INTELLIGENCE AND SECURITY COMMAND 

U.S. ARMY CRIMINAL INVESTIGATION COMMAND 

U.S. ARMY CORPS OF ENGINEERS 

U.S. ARMY MILITARY DISTRICT OF WASHINGTON 

U.S. ARMY TEST AND EVALUATION COMMAND 

U.S. ARMY INSTALLATION MANAGEMENT COMMAND 

SUPERINTENDENT, U.S. MILITARY ACADEMY 

DIRECTOR, U.S. ARMY ACQUISITION SUPPORT CENTER 

EXECUTIVE DIRECTOR, ARLINGTON NATIONAL CEMETERY 

CF: 

CHIEF, NATIONAL GUARD BUREAU 

CHIEF, ARMY RESERVE 

COMMANDER, U.S. ARMY CYBER COMMAND 

OFFICE OF THE DEPUTY CHIEF OF STAFF FOR INTELLIGENCE, ATTN: DAMI-CP 

(MS. WATSON) 

OFFICE OF THE ASSISTANT SECRETARY OF THE ARMY (MANPOWER AND 

RESERVE AFFAIRS), ATTN: SAMR-CQ 

OFFICE OF THE GENERAL COUNSEL, ATTN: SAGC (MS. JOHNSON) 

OFFICE OF THE JUDGE ADVOCATE GENERAL, ATTN: DAJA-LE (MS. NUGENT) 

ARMED SERVICES BOARD OF CONTRACT APPEALS 

DOD EXPLOSIVES SAFETY BOARD 

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT ORGANIZATION 

SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION 

SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION 

MILITARY ENTRANCE PROCESSING COMMAND 

7 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough69

Appendix A: General Administrative Furlough Guidelines and Procedures 

1. General. Administrative furloughs differ from emergency furloughs, as outlined in reference 

1.b. of the base memorandum. Administrative furloughs of up to 22 workdays are considered 

adverse actions. Commanders, supervisors and other management officials may find it helpful 

to review the references listed in paragraph 3, below. 

a. As a result of major budgetary shortfalls, the Army intends to furlough all civilian 

employees for up to 88 hours or 11 workdays in Fiscal Year (FY) 2013. At this time, the 

furlough period is expected to run from 8 July through 30 September 2013, subject to 

fulfillment of labor relations obligations, as appropriate. As authorized by the officials 

designated as Deciding Officials in paragraph 4 of the base memorandum, commanders, 

supervisors and other management officials have latitude in scheduling furlough hours/days for 

furloughed employees in their chains of command or supervision, consistent with mission 

requirements, bargaining agreements, fairness, equity and consideration for employee 

preferences. 

b. Furloughs may not be scheduled solely on designated federal holidays. Additionally, 

furloughs may not be scheduled for a three-day period where the designated holiday falls in 

the middle of the three days, with the purpose of saving three days of pay while only losing two 

days of work. The employee will receive holiday pay if he or she is in a paid status either on 

the workday preceding the holiday or the workday after the holiday. Employees may, however, 

be furloughed for substantial periods of time that include holidays. In all cases, organizations 

should select furlough days based on factors that are unrelated to the fact that the furlough 

period includes a holiday. 

c. A furloughed employee may not volunteer to perform his/her duties on a no-pay basis 

during any hours or days designated as furlough time for that employee. Unless otherwise 

authorized by law, an organization may not accept the voluntary services of any employee. 

d. Furloughed employees may not take paid leave or substitute any form of paid time off for 

any hours or days designated as the employee's furlough time. 

e. Based on operational needs or due to established use of alternate (compressed and 

flexible) work schedules, supervisors/managers may manage furloughs by hours to ensure that 

employees are furloughed exactly 88 hours over the period designated for furlough. Alternate 

work schedules may be modified or temporarily suspended to accommodate employee 

absences for furlough. Supervisors and managers must be aware, however, that pursuant to 

Title 5, U.S. Code, Section 6126, termination of an employee's flexible work schedule may 

obligate the Army to pay the employee for up to 24 hours of accumulated credit hours. 

Employees should be informed of work schedule changes at least a week in advance of the 

change. Labor relations obligations will be met before action is taken to change established 

work schedules. 

f. Careful consideration should be given to the timing of furlough hours and days. Some 

organizations may need to rotate employee furlough time to enable continued operations. 

Other commands and organizations may be able to furlough all employees during the same 

period to garner added savings. Commanders, supervisors and other management officials 

A-1 
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Appendix A: General Administrative Furlough Guidelines and Procedures 

should consider opportunities for cost savings in base operations and utilities by synchronizing 

employee furlough schedules across an installation. For example, organizations may establish 

the same day each week to furlough employees across an installation, thereby reducing both 

staffing levels and the installation's utility bills. 

g. To the extent possible, furlough hours/days should not be scheduled during periods of 

temporary duty (TOY). If furlough during an employee's TOY appears unavoidable and the 

employee is not approved for an exception to the furlough, consideration should be given to 

cancelling the TOY. Either per diem or actual expenses must be provided to an employee 

whose travel status requires a stay that includes a furlough day (even though the employee is 

in a no-pay, non-duty status). 

h. The furlough hours of part-time employees will be pro-rated. An employee working only 

40 hours per pay period, for instance, will be furloughed only 44 hours over the period during 

which furloughs will occur (one-half of the 88 hours mandated for full-time employees). 

Similarly, employees who are currently in a furlough-excepted category or position, but who 

subsequently become subject to furlough, or vice versa, will have their furlough hours prorated across the pay periods remaining in FY 2013 from the day after a notice of final furlough 

decision is issued or the statutory 30-day notice period expires, whichever is later. 

i. Furlough guidance applicable to employees on detail is provided in reference 1.b. of the 

base memo. Detailed employees remain officially assigned to their permanent positions during 

the detail. During a furlough, each parent organization will determine the status of each of its 

employees. If furlough is required, the parent organization will determine how and when the 

detailed employee will be affected. Parent organizations are encouraged to work with the 

detailed organization in scheduling the detailee's furlough days. 

j. If an employee is scheduled to be on Leave Without Pay (LWOP) during the furlough 

period, the supervisor/manager has discretion whether or not to furlough the employee. If the 

supervisor/manager decides to place the employee in a furlough status during hours that were 

originally scheduled for LWOP, all applicable procedural requirements must be met, to include 

providing a notice of proposed furlough. No proposed furlough notice or notice of final furlough 

decision is required for employees who are on LWOP and not expected to return to work at all 

during the period of furlough (e.g., an employee on a one-year period of LWOP to accompany 

a military spouse on assignment). Should an employee who was expected to be on LWOP for 

the entire period of the furlough return to work during the furlough period, the 

supervisor/manager should issue a notice of proposed furlough to the employee as soon as 

possible after the employee's return to duty. The Office of the Deputy Chief of Staff, G-1 will 

update you should this guidance change. 

k. Newly hired Army employees; employees moving within Army from a position excepted 

from furlough to a position subject to furlough; employees permanently moving from one Army 

position to another position under a different Deciding Official; and employees moving to Army 

from another DoD Component or from another Federal agency, will be provided a 30-day 

notice of proposed furlough immediately on reporting to the new Army position. If furloughed, 

the employee's hours of furlough will be pro-rated across the pay periods remaining from the 

A-2 
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Appendix A: General Administrative Furlough Guidelines and Procedures 

day after a notice of final furlough decision is issued or the statutory 30-day notice period 

expires, whichever is later. Under no circumstance may any individual employee exceed 88 

total furlough hours in FY 2013, regardless of where employed. 

I. Firefighters and other employees serving "uncommon" tours of duty also shall be 

furloughed for 88 hours, absent an approved exception to the furlough. However, the furlough 

should not disproportionately impact these employees and care should be taken to ensure that 

their regular pay is not disproportionately reduced in comparison to other furloughed 

employees. For instance, if full time employees on a normal work schedule are furloughed for 

two days per 1 0-day pay period, the reduction in firefighter regular pay as a result of furlough 

should not exceed 20% per pay period. 

2. Procedures. 

a. Administrative furloughs of 22 workdays or less are covered under adverse action 

procedures. Each employee, as defined in Title 5, U.S. Code, Section 7511, must receive at 

least a 30-calendar-day advance notice of proposed furlough, a minimum 7-calendar-day 

response period and a notice of final furlough decision. The 7-calendar-day response period 

runs concurrently with the 30-day advance notice. A notice of final furlough decision must be 

issued whether or not the employee submits a response to the notice of proposed furlough. 

b. Key Personnel in the Furlough Process: 

(1) An employee's first line supervisor generally will serve as the Furlough Proposing 

Official. Proposing Officials will issue individual notices of proposed furlough to each 

employee to be furloughed. 

(2) Deciding Officials will be designated in accordance with paragraphs 4 through 6 of 

the base memorandum and empowered with all requisite authorities. Deciding Officials are 

charged with, and accountable for, making and issuing notices of final furlough decision to 

each individual employee subject to furlough, whether or not that employee submits any 

response to the notice of proposed furlough. In making a final decision on the proposed notice 

of furlough of each employee, the Deciding Official must carefully review and consider all 

evidence of record, giving full and fair consideration to any response that may be submitted by 

an employee to the notice of proposed furlough. 

(3) The Deciding Official may appoint one or more designated Reply Official(s). A 

Reply Official must be appointed in writing and may be either a military officer or a civilian 

employee. The Reply Official will: (1) serve as the official designated to hear, receive and 

document any verbal and/or written replies made by an employee in response to a notice of 

proposed furlough; (2) receive and respond to any requests for an extension to the period 

allocated for employee reply to a notice of proposed furlough; (3) prepare a written summary of 

an employee's oral reply, if any, and present the summary to the employee for review for 

accuracy; (4) provide the Deciding Official with a copy of all documents or information provided 

by the employee and a summary of any verbal reply provided by the employee; and (5) based 

solely on the information provided in support of the notice of proposed furlough and the 

A-3 
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Appendix A: General Administrative Furlough Guidelines and Procedures 

employee's reply, if any, recommend to the Deciding Official a final decision on the proposed 

furlough of the employee and the rationale for any such recommendation. 

c. OSD-approved notices of proposed furlough and final furlough decision templates, the 

use of which is mandatory, have been disseminated through human resources channels. To 

the extent possible, management officials will deliver to the receiving employee in person both 

the notice of proposed furlough and the notice of final furlough decision rendered by the 

Deciding Official. Each employee will be asked to sign a copy of the notice of proposed 

furlough and notice of final furlough decision, acknowledging receipt. A copy of the 

employee's acknowledgment will be retained in the adverse action file. Should an employee 

decline to acknowledge receipt, a management official will annotate the delivery and the 

employee's refusal to sign on a copy of the notice and/or decision and retain that copy in the 

adverse action file. When an employee is absent from the workplace at the time notices or 

decisions are to be delivered personally, a management official must mail the notice by 

certified mail with return receipt to the employee's current mailing address. It is recommended, 

however, that supervisors/managers send notices to the employee by both first class mail and 

certified mail with return receipt. Supervisors/managers also may undertake personal delivery 

to the employee's home. Although not the preferred method, the officials designated as 

Deciding Officials in paragraph 4 of the base memorandum may permit their subordinate 

Proposing and Deciding Officials to issue furlough-related notices by email. Additional 

guidance on the use of email will be published through human resources channels. In each 

case, the Proposing and Deciding Officials must retain a record documenting the means by 

which each furlough-related document was provided to the employee and proof of employee 

receipt. 

d. Other: 

(1) The servicing Civilian Personnel Advisory Center (CPAC) will provide advice and 

guidance on: (1) Impact and Implementation bargaining; (2) preparation of notices of 

proposed furlough and final furlough decision; (3) processing of Standard Form (SF)-50, 

Notification of Personnel Action; and (4) other questions and issues that may arise during the 

furlough. 

(2) The Civilian Human Resources Agency (CHRA) will process a Notification of 

Personnel Action (SF-50) for each employee furloughed. CHRA will provide additional 

processing guidance and guidance on records retention and maintenance, through the 

servicing CPACs, under separate cover. 

(3) Employees and supervisors/managers must document furlough hours/days in the 

Automated Time Attendance and Production System (ATAAPS) or other approved time and 

attendance system. Furlough hours/days will be coded as KE. 

(4) Throughout the process, statutory and contractual labor relations obligations must 

be met for bargaining unit employees. Servicing CPACs will assist in this effort. 

A-4 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough73

Appendix A: General Administrative Furlough Guidelines and Procedures 

3. Additional Resources. Commanders, supervisors/managers and other leaders are 

encouraged to review the websites referenced below for assistance in planning for the 

furlough. Leaders also may find it helpful to refer employees to one or more of the websites 

below for information. 

a. Office of Personnel Management Furlough Guidance at http:/www.opm.gov/policydata-oversight/pay-leave/furlough-guidance/ 

b. Defense Civilian Personnel Administrative Services Furlough Guidance at 

http://www.cpms.osd.mii/Subpaqe/FurloughGuidance/ 

c. Army Information, Frequently Asked Questions and Fact Sheets at 

http://cpol.army.mil/library/general/2013seguestration/ 

d. Thrift Savings Plan information at https://www.tsp.gov/PDF/formspubs/oc13-7.pdf 

A-5 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough74

Appendix B: Administrative Furlough Guidance - Civilian Training 

1. General. Administrative furloughs differ from emergency or government shutdown 

furloughs, as outlined in reference 1.b. of the base memorandum. Organizations should 

review and apply that reference and the guidance below in planning for the Fiscal Year 

(FY) 2013 administrative furlough. 

a. The Army will continue to support mission critical functional and leader 

development training within available funding. Career Program (CP) Managers and 

commands must continue to spend every training dollar wisely, considering mission 

essential training, career program and command priorities, together with revised funding 

levels. The Army encourages all commands and organizations to continue to support 

CP and other centrally funded training (Senior Leader Seminar, Army Civilian Education 

System, DoD Leader Development Programs, etc.), but will also support a 

commander's/supervisor's decision to impose travel and training restrictions on their 

employees. 

b. Reference 1.b. states: "In the event that scheduled training occurs during a 

furlough period, affected employees must be placed in a furlough status and ordered 

NOT to attend the scheduled training on the day of their scheduled furlough." The 

following guidance is provided with regard to Army Civilians participating in long- and 

short-term training during the furlough period. 

(1) Long-Term training is defined in AR 350-1 as continuous, full-time training for 

more than 120 calendar days and is most applicable to the military Senior Service 

Colleges (SSCs) (i.e., Army War College, Air War College, Naval War College, Dwight 

D. Eisenhower School for National Security and Resource Strategy, etc.). Civilian 

students and employees of the military SSCs are not exempt from furlough. 

(2) Army Civilian employees attending civilian-managed college or university 

long-term training (i.e., Comptroller Career Program employees attending the fourteenmonth Defense Comptrollership Program at Syracuse University-a civilian-managed 

university) or attending long-term developmental assignments (internal or external to 

Army) will be furloughed in accordance with the procedures implemented by the 

employee's parent organization. Parent organizations may give consideration to 

adjusting the employee's/student's furlough schedule to accommodate course work and 

educational requirements while still meeting the mandated 88 hours of furlough before 

the end of FY 2013. 

B-1 
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Appendix B: Administrative Furlough Guidance - Civilian Training 

(3) Short Term Training: Short-term training is defined as training for less than 

120 days. An employee attending short term Civilian training will be furloughed in 

accordance with the procedures implemented by the employee's parent organization. 

This includes students attending the Army's Civilian Education System program as well 

as civilian-managed college and university courses. Parent organizations may give 

consideration to adjusting the employee's/student's furlough schedule to accommodate 

course work and educational requirements while still meeting the mandated 88 hours of 

furlough before the end of FY 2013. 

c. Travel and per diem in a training context: In reference 1.b., OPM states: 

"Agencies must provide per diem or actual expenses to employees whose travel status 

requires a stay that includes a furlough day" (even though the employee is in a no-pay, 

non-duty status). This guidance applies to all travel, whether centrally funded or 

command funded. 

2. Additional guidance as it relates to Civilian employee training during the 

administrative furlough will be provided as it becomes available. 

B-2 
76

FURLOUGH SCHEDULE* 

• Notices of proposed furlough served on emplo

- 28 May through 5 June 

• Employee reply period 

- 7 days after receipt of notice of proposed furlough 

• Notice of final furlough decision issued to em

- 5 June through 5 July, but in any case, only after th

period has passed 

• Furlough period 

- No earlier than 8 July through 30 September 

*Timelines for bargaining unit employees are subject to fulfillment of labor relations obliga

Appendix C 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough77

SECRETARY OF DEFENSE 

1000 DEFENSE PENTAGON 

WASHINGTON, DC 20301-1000 

MAY 1 4 2013 

MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS 

CHAIRMAN OF THE JOINT CHIEFS OF STAFF 

UNDER SECRET ARIES OF DEFENSE 

SUBJECT: Furloughs 

DEPUTY CHIEF MANAGEMENT OFFICER 

CHIEFS OF THE MILITARY SERVICES 

COMMANDERS OF THE COMBATANT COMMANDS 

CHIEF OF THE NATIONAL GUARD BUREAU 

DIRECTOR, COST ASSESSMENT AND PROGRAM 

EVALUATION 

DIRECTOR, OPERATIONAL TEST AND EVALUATION 

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE 

INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE 

ASSIST ANT SECRET ARIES OF DEFENSE 

DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER 

ASSISTANTS TO THE SECRETARY OF DEFENSE 

DIRECTOR, ADMINISTRATION AND MANAGEMENT 

DIRECTOR, NET ASSESSMENT 

DIRECTORS OF THE DEFENSE AGENCIES 

DIRECTORS OF THE DOD FIELD ACTIVITIES 

This memo directs defense managers to prepare to furlough most Deparlment of Defense 

(DoD) civilians for up to 11 days. The schedule for furloughs, and some specific exceptions, are 

described later in this memo and in the attachment I have made this decision very reluctantly, 

because I know that tbe furloughs will disrupt lives and impact DoD operations. I, along with 

the senior civilian and military leadership of the Deparlment, have spent considerable time 

reviewing information related to the need for furloughs, and I would like to share with you the 

reasoning that led me to this difficult decision. 

Major budgetary shortfalls drove the basic furlough decision. On March 1, sequestration 

went into effect across the federal government DoD's budget for FY 2013 was reduced by $37 

billion, including $20 billion in the operation and maintenance (O&M) accounts that pay many 

of our civilian workers. In ad<lition, because our wartime budget is also subject to sequestration, 

we must utilize funds originally budgeted for other purposes in order to provide our trcops at war 

with every resource they need. To compound our problems, when we estimated future wartime 

operating costs more than a year ago, we plarmed on fuel costs below what we are currently 

experiencing. Taken together, all these factors lead to a shortfall in our O&M accounts of more 

than $30 billion -a level that exceeds 15 percent of our budget request, with fewer than six 

months left in the fiscal year in which to accommodate this dramatic reduction in available 

resources. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough78

We are taking actions to reduce this shortfall. One main priority has governed our 

decisions: to minimize the adverse effects on our military mission, including military readiness. 

With this in mind, early this calendar year we cut back sharply on facilities maintenance and 

worked to hold down base operating costs -- decisions we knew would build a backlog of 

maintenance and adversely affect our bases. We are also preparing a request to Congress that 

would permit us to shift some funding from investment and military personnel accounts into the 

O&M accounts. If approved by Congress, this initiative- known as a reprogramming- would 

help close the gap. 

But these actions are not enough. We have begun making sharp cuts in the training and 

maintenance of our operating forces -cutbacks that are seriously harming military readiness. 

The Army, for example, has terminated most remaining FY 2013 training rotations at its combat 

training centers. The Air Force has or soon will stop all flying at about one-third of its combatcoded squadrons in the active forces. The Navy and Marine Corps are cutting back on training 

and on deployments - including a decision not to send a second carrier strike group to the Gulf. 

These are only a few of the many cutbacks we have made in training and maintenance. These 

actions reduce our ability to handle future military contingency needs, both this year and in 

subsequent years. 

Even after taking all these actions, we are still short of needed operating funds for FY 

2013, and we cannot rule out unexpected increases in costs during the next few months. So we 

confront a difficult set of trade offs. We can make even larger cutbacks in training and 

maintenance, further reducing readiness to handle contingency operations and putting into even 

greater jeopardy our military readiness in future fiscal years. Alternatively, we can furlough 

civilian personnel to help close the gap and, knowing that morale, productivity and readiness 

would be affected. This is an unpleasant set of choices, but this is the situation we face. 

Before making a decision, I sought advice and inputs from senior leaders in the rnilitary 

departments and agencies as well as advice from my senior civilian and military staff. I asked 

them to keep in mind our fundamental criterion to minimize adverse mission effects and, subject 

to that criterion, to ensure reasonable consistency and fairness across the Department for any 

furloughs that we impose. 

Based on all these inputs, I have decided to direct furloughs of up to 11 days for most of 

the Department's civilian personneL Furloughs for up to 11 days represent about half of the 22 

days that can legally be imposed in a year and also about half the number we had originally 

planned. This halving of previous furlough plans reflects vigorous efforts to meet our budgetary 

shortfalls through actions other than furloughs as well as Congressional passage of an 

appropriations bill in late March that reduced the shortfalls in our operating budget and 

expectations of Congressional action on our reprogramming request. 

Furloughs will be imposed in every military department as well as almost every agency 

and in our working capital funds. All of our civilian employees are important, and l would 

prefer not to furlough any of them. However, there will only be limited exceptions driven by law 

and by the need to minimize harm to mission execution. We will except civilians deployed to 

combat zones and civilians necessary to protect life and property (but only to the extent needed 

to provide that protection). A few categories of workers will be excepted for specific mission 

reasons while some categories of workers will be excepted because furloughing them would not 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough79

free up money for critical DoD mission needs. The attachment provides details regarding 

approved exceptions. Fewer than one fifth of all civilians paid with appropriated funds will be 

excepted from furloughs. 

The planning and implementation of furloughs will be carried out based on the schedule 

below: 

• May 28 - June 5: Furlough proposal notices will be served to individual employees 

subject to furloughs. 

• June 4- June 12: Individual employee reply periods end 7 calendar days from when 

the proposal was received, unless Component procedures allow for a different reply 

period. 

• June 5- July 5: Furlough decision letters will be served to individual employees 

subject to furloughs, depending on when the proposal was received and prior to the 

first day of furlough. 

• July 8: Furlough period begins no earlier than this date. 

We will begin furloughs on July 8 at the rate of 1 furlough day per week for most 

personnel. For now, we plan to continue furloughs through the end ofFY 2013. That schedule 

would lead to 11 furlough days - one fifth of the week for about one quarter of the year. 

Moreover, I am directing all components to monitor funding closely for the remainder of FY 

2013. If our budgetary situation permits us to end furloughs early, I would strongly prefer to do 

so. That is a decision I will make later in the year. 

Consistent with this memo and with applicable laws and rules, commanders and 

managers will have the authority to develop the specifics of furlough procedures in order to 

minimize adverse mission effects and also limit the harm to morale and productivity. Further 

bargaining with unions may also be required. The Under Secretary for Personnel and Readiness 

has already issued guidance as appropriate regarding personnel and union issues related to 

furloughs and will issue additional guidance as needed. Overall coordination of sequester and 

furlough policies will be the responsibility of the Under Secretary of Defense (Comptroller). 

Each of the Department's civilian employees makes an important contribution to the 

readiness of our Department to meet the nation's national security needs. I understand that the 

decision to impose furloughs imposes fmancial burdens on our valued employees, harms overall 

morale, and corrodes the long-term ability of the Department to carry out the national defense 

mission. I deeply regret this decision. I will continue to urge that our nation's leaders reach an 

agreement to reduce the deficit and de-trigger sequestration. If no agreement is reached, I will 

continue to look for ways to limit the adverse effects of sequestration and associated budgetary 

shortfalls both on the men and women of the Department of Defense, and on our national 

defense. 

Attachment: 

As stated. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough80

Department of Defense Furlough Exceptions 

This attachment provides Components with final dispositions on categorical exceptions to 

the Department of Defense (DoD) plan to furlough civilian employees for a maximum of 88 

hours or II discontinuous workdays because of the current financial crisis caused by a 

sequestration for Fiscal Year (FY) 2013, increased costs for ongoing Overseas Contingency 

Operations, and other emerging reg uirements. In order to minimize adverse effects on mission, 

employees in the following categories are excepted from furlough for the reasons noted: 

a) In order to avoid harm to war efforts, all employees deployed (in a Temporary Duty status) 

or temporarily assigned (to include Temporary Change of Station) to a combat zone (as 

defmed in notes below) are excepted from furlough. 

b) In order to avoid harm to mission, those employees necessary to protect safety of life and 

property are excepted to the extent necessary to protect life and property. This includes 

selected medical personnel. Later portions of this attachment provide details. 

c) Employees in Navy shipyards will be excepted from furlough because it would be 

particularly difficult to make up delays in maintenance work on nuclear vessels and these 

vessels are critical to mission success. All other depot employees, whether mission-funded 

or working capital fund employees, will be subject to furlough. 

d) Furloughs for employees funded with National Intelligence Program (NIP) funds will be 

determined by the Director of National Intelligence. Employees funded with Military 

Intelligence Program (MIP) funds will be subject to furlough. 

e) Because there would be no savings, Foreign Military Sales (FMS) employees whose 

positions are exclusively funded from FMS Administrative and FMS case funds (case 

number may be required to validate funding source) and from Foreign Military Financing 

accounts are excepted from furlough. Furloughing employees in this category would not 

reduce the expenditure of DoD budgetary resources and so would not assist in meeting 

sequestration reductions. The FMS case-funded positions funded in whole or part by DoD 

appropriations (to include "pseudo-FMS" cases) are subject to furlough. 

f) By law, all individuals appointed by the President, with Senate confirmation, who are not 

covered by the leave system in title 5, U.S. Code, chapter 63, or an equivalent formal leave 

system, are excepted from furlough. 

g) All employees funded by non-appropriated funds (NAF) 1 (regardless of source ofNAF 

funding) are excepted from furlough. Furloughing employees in this category would not 

reduce the DoD budget and so would not assist in meeting sequestration reductions. 

h) All Outside Contiguous United States foreign national employees, many of whom are subject 

to Status ofF orces Agreements, are excepted from furlough because their situation vary 

greatly by country/region and because, in some cases, they are paid by host governments. 

1 NAF employees are not covered by the requirements and procedures applicable to furloughs of appropriated fund 

employees under FY13 sequestration. However, NAF employees may be furloughed under DoD NAF and 

Component policies and procedures for business~based reasons. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough81

i) Any employees who are not paid directly by accounts included in the Department of 

Defense-Military (subfunction 051) budget are excepted from furlough. For example, this 

would include employees funded by the Arlington National Cemetery (705 function) and 

DoD Civil Works (various non-051 functions) programs. These exceptions have been 

identified by the Components. Furloughing these employees would not reduce the 

expenditure of DoD budgetary resources and so would not assist in meeting sequestration 

reductions. 

The following portion of this document provides the defmitive list of additional approved 

exceptions beyond those listed in the preceding paragraph. The exceptions approved for the 

safety of life and protection of property category are granted with the understanding that these 

are the minimum exceptions needed to maintain operations and provide security on a 24/7 basis 

and that furloughing these employees would result in the Department incurring additional costs 

for premium pay. Similarly, the exceptions for the medical category are approved with the 

understanding these exceptions preserve the minimum level of personnel needed to maintain 

quality of care in 24/7 emergency rooms and other critical care areas such as behavioral health, 

wounded warrior support, and disability evaluation. Furloughing these employees would result 

in unacceptable care being provided, and the Department would incur increased costs for 

premium pay or TRJCARE. The exception for Child Development Centers is granted with the 

understanding that this is the minimum level needed to maintain accreditation and maintain 

quality care for children in military families. Some Department of Defense Education Activity 

employees, while not excepted from furlough, may only be furloughed when they are in a pay 

status. Therefore, they will only be subject to furlough for up to five days at the beginning of the 

2013 school year. 

Recognizing that circumstances can change in this dynamic environment, the Secretaries 

of the Military Departments, and the Principal Staff Assistants for the Defense Agencies and 

Field Activities, may approve up to 50 additional individual, mission-based, exceptions as 

needed to ensure safe and efficient operations of their respective Departments. Any such 

exception must be reported to the Acting Under Secretary of Defense (USD) for Personnel and 

Readiness and the USD Comptroller. There are no other approved exceptions provided based on 

the Components' submissions. Furlough proposal notices should be issued to all impacted 

employees beginning May 28,2013. 

Relative to the review and decision on individual employee requests for exception, per 

guidance issued via the Principal Deputy Assistant Secretary of Defense, Readiness and Force 

Management, memorandum, dated March 13, 2013, activities should designate the Deciding 

Official. The designated Deciding Official will be no lower than a locallnstallation Commander, 

senior civilian or equivalent who would be in the best position to determine the fair and equitable 

application of the furlough. Deciding Official responsibilities may not be further delegated. 

Deciding Officials are charged with, and are accountable for, making final decisions on furloughs 

for individual employees after carefully considering the employee's reply, if any, and the needs of 

the Department. Deciding Officials must also ensure they make final decisions in cases where an 

employee does not submit a reply. Deciding Officials will have the authority to execute the full 

range of options with respect to providing relief in individual employee cases. This authority 

includes, but is not limited to, reducing the number of days/hours an individual employee is 

furloughed, or granting the individual employee an exception from the furlough altogether. 

2 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough82

Component Safety of Medical Others Comments I 

Life& Personnel 

Prouertv 

DoN 7,543 1,418 212 CIVPERS CIVPERS deployed at sea 

at Sea are subject to furlough upon 

return from deployment 

4,712 CIVMARS are subject to 

CIVMARS furlough upon return from 

deployment 

514 Maintain safety standards 

Appropriated and quality of care 

Fund (APF) 

Child 

Development 

Centers 

(CDCs) 

15 Support to classified 

programs 

28,000 Shipyard Workers, General 

1,657 Shipyard Workers, Nuclear 

and Naval Reactors Staff 

USA 263 Up to 555 APF Maintain safety standards 

6,600 CDC and quality of care 

Employees 

75 ARNG Dual Status 

Technicians for Alerts, 

Firefighting, Personnel 

Recovery and other 

missions 

17 Support to classified 

programs 

257 Non-immigrant employees 

requiring H-!B visas at 

Defense Language Institute 

3 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough83

Component Safety of Medical Others Comments 

Life& Personnel 

Property 

USAF 933 410 62 Support to classified 

programs 

l, 123 ANG Dual Status 

Technicians for Alerts, 

Firefighting, Personnel 

Recovery and other 

missions 

30 Students Intel School & FLETC 

94 Multi-IOC I Heating/Waste Water Plant 

2417 Plant minimum safe manning 

Operators 

2 Contingency Planners I 

I 

3 Special Law Enforcement 

I Pay 

1,634 APF Maintain safety standards 

CDCs and quality of care 

DLA 363 

DA&M 623 546 are from the Pentagon 

Force Protection Agency; the 

remaining 77 are Washington 

Headquarters Services for 

Pentagon safety and emergency 

communications. 

Most will be furloughed fewer 

than 11 days due to the need to 

maintain operations and 

security 24/7. 

US Court of 59 The Chief Judge will decide 

Appeals for how many days to furlough 

Armed Services employees, if at all. 

JTFCAPMED 368 165 @Walter Reed 

203 @ Fort Belvoir 

4 

---- ---------_____ , 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough84

Component Safety of Medical Others Comments 

Life& Personnel 

Property 

USUHS 22 Animal Husbandry Technicians 

5 Non-immigrant employees 

requiring H-IB visas 

Office of the 9 Civilian Tria! Practitioners 

Military 

Commissions -

Defense Legal 

Services 

Agency 

Department of 10,950 9-month DoDEA employees, 

Defense which includes teachers, 

Education educational aids, and support 

Activity staff may only be furloughed 

(DoDEA) for up to 5 days at the 

beginning of the 2013 school 

year. 

DCAA ] Non-immigrant employees 

requiring H-lB visa 

1. Safety of life and property exceptions are based on need for 2417 coverage in most instances. 

It is expected all Components will furlough for less than 88 hours in these areas where 

feasible. 

2. Individuals for whom law enforcement premium pay would result in no loss of pay if 

furloughed will be excepted from the furlough. 

3. 20 CFR 655.731 requires that the employer of a H-lB non-immigrant who is not performing 

work and is placed in a nonproductive status due to a decision by the employer (e.g., placed 

in a non-pay/non-duty status due to administrative furlough) pay the salaried employee the 

full pro-rata amount due, or to pay the hourly-wage employee for a full-time week ( 40 hours 

or such other number of hours as the employer can demonstrate to be full-time employment 

for hourly employees, or the full amount of the weekly salary for salaried employees) at the 

required wage for the occupation. 

5 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough85

1. References. 

a) Title 26, U.S. Code, Section 112, Certain combat zone compensation of members of the 

Armed Forces 

b) Executive Order 12744, January21, 1991 

c) Executive Order 13119, April 13, 1999 

d) Executive Order 13239, December 12,2001 

e) Public Law 104-117, To provide that members of the Armed Forces performing services 

for peacekeeping efforts in Bosnia and HerLegovina, Croatia, and Macedonia shall be 

entitled to tax benefits in the same manner as if such services were performed in a combat 

zone. 

2. The following locations are designated as "Combat Zones" by law, Presidential Executive 

Order or by DoD certification that members of the Armed Forces serving in such locations are 

serving in direct support of military operations in a combat zone: 

Countries: 

Afghanistan (EO 13239) 

Albania (EO 13119) 

Bahrain (EO 12744) 

Bosnia (PL 104-117) 

Djibouti (DoD certification) 

Iraq (EO 12744) 

Kuwait (EO 12744) 

Macedonia (PL 1 04-1170) 

Oman (EO 12744) 

Philippines (Only troops with orders 

referencing Operation Enduring Freedom) 

(DoD certification) 

Saudi Arabia (EO 12744) 

Somalia (DoD certification) 

6 

United Arab Emirates (EO 12744) 

Uzbekistan (DoD certification) 

Yemen (DoD certification) 

Croatia (PL 104-1 17) 

Herzegovina (PL 1 04-117) 

Jordan (DoD certification) 

Kyrgyzstan (DoD certification) 

Montenegro (EO 13119) 

Pakistan (DcD certification) 

Qatar (EO 12744) 

Serbia (includes Kosovo) (EO 13119) 

Tajikistan (DoD certification) 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough86

Sea Areas: 

Adriatic Sea {EO 13119) 

Gulf of Aden (EO 12744) 

Ionian Sea north of the 39th Parallel (EO 13119) 

Red Sea {EO 12744) 

That portion of the Arabian Sea that 

lies north of I 0 degrees north latitude, 

and west of 68 degrees east longitude 

(EO 12744) 

Gulf of Oman (EO 12744) 

Persian Gulf (EO 12744) 

3. Adherence to the following principles ensures consistency in applying the "deployed to 

combat zone" exemption to civilian employees in the context of the administrative furlough: 

a) "Deployed civilian" is defined as a civilian employee who is deployed (in temporary duty 

(TDY) status) or temporarily assigned (to include temporary change of station (TCS)) to 

a "combat zone" as set forth above. 

b) "Combat zone" is defined as those locations listed as combat zones in Executive Orders 

12744, 13119 or 13239 and locations where military are eligible for combat zone tax 

benefits under law or because DoD has certified that they are providing direct support to 

military operations. 

c) A "deployed civilian's" period of deployment includes time spent in attendance at 

mandatory pre-deployment training as well as in completing mandatory post-deployment 

requirements. 

d) A civilian employee who was deployed to a combat zone but redeploys mid-way through 

the furlough period will receive a notice of proposed furlough upon return to their parent 

organization and prior to any furlough. Further, the number of hours for which the 

employee will be furloughed will be pro-rated. 

7 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough87

SAMR 

DEPARTMENT OF THE ARMY 

OFFICE OF THE ASSISTANT SECRETARY 

MANPOWER AND RESERVE AFFAIRS 

111 ARMY PENTAGON 

WASHINGTON, DC 20310..()111 

MEMORANDUM FOR SEE DISTRIBUTION 

2 3 MAY 2013 

SUBJECT: Additional Exception to Fiscal Year (FY) 2013 Administrative Furlough 

1. References: 

a. Secretary of Defense memorandum, 14 May 2013, subject: Furloughs. 

b. Assistant Secretary of the Army (Manpower and Reserve Affairs) memorandum, 17 

May 2013, subject: Department of the Army Fiscal Year 2013 Administrative Furlough. 

2. References a. and b. provided furlough exceptions for civilian employees engaged in 

certain critical functions across the Department of Defense. Additionally, on 21 May 2013, 

the Acting Under Secretary of Defense (Personnel and Readiness) excepted from furlough 

all full-time Sexual Assault Prevention and Response (SAPR)Nictim Advocates and 

Sexual Assault Response Coordinators. This exception also extended to headquarters 

full-time SAPR program management staff members. 

3. This memorandum implements this additional exception to the FY 2013 administrative 

furlough with a view to ensuring that every effort is made to instill in the Army a climate that 

does not tolerate or ignore sexual harassment or sexual assault. No later than 23 May 

2013, addressees will report to my point of contact listed below the total number of 

employees under their respective jurisdictions who will be excepted from furlough pursuant 

to this additional exception. 

4. National Intelligence Program (NIP) funded Army employees are furlough exempt per 

direction of the Director of National Intelligence. 

5. Paragraph 4.a.(4) of reference 1.b. stating that the Administrative Assistant to the 

Secretary of the Army will exercise authority, direction and control over the personnel of 

the Special Inspector General for Iraq Reconstruction (SIGIR) is rescinded. 

6. My point of contact for this action is Patrick L. Stewart, (703) 695-5145, 

patrick.l.stewart4.civ@ mail.mil. 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough88

SAMR 

SUBJECT: Exception to FY 2013 Administrative Furlough 

DISTRIBUTION: 

THOMAS R. LAMONT 

Assistant Secretary of the Army 

(Manpower and Reserve Affairs) 

ADMINISTRATIVE ASSISTANT TO THE SECRETARY OF THE ARMY 

COMMANDER 

U.S. EUROPEAN COMMAND 

U.S. FORCES KOREA 

U.S. SOUTHERN COMMAND 

U.S. AFRICA COMMAND 

JOINT SPECIAL OPERATIONS COMMAND 

U.S. ARMY FORCES COMMAND 

U.S. ARMY TRAINING AND DOCTRINE COMMAND 

U.S. ARMY MATERIEL COMMAND 

U.S. ARMY PACIFIC 

U.S. ARMY EUROPE 

U.S. ARMY CENTRAL 

U.S. ARMY NORTH 

U.S. ARMY SOUTH 

U.S. ARMY AFRICA/SOUTHERN EUROPEAN TASK FORCE 

U.S. ARMY SPECIAL OPERATIONS COMMAND 

MILITARY SURFACE DEPLOYMENT AND DISTRIBUTION COMMAND 

U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND/ARMY FORCES STRATEGIC 

COMMAND 

U.S. ARMY NETWORK AND ENTERPRISE TECHNOLOGY COMMAND/9TH SIGNAL 

COMMAND (ARMY) 

U.S. ARMY MEDICAL COMMAND 

U.S. ARMY INTELLIGENCE AND SECURITY COMMAND 

U.S. ARMY CRIMINAL INVESTIGATION COMMAND 

U.S. ARMY CORPS OF ENGINEERS 

U.S. ARMY MILITARY DISTRICT OF WASHINGTON 

U.S. ARMY TEST AND EVALUATION COMMAND 

U.S. ARMY INSTALLATION MANAGEMENT COMMAND 

SUPERINTENDENT, U.S. MILITARY ACADEMY 

DIRECTOR, U.S. ARMY ACQUISITION SUPPORT CENTER 

EXECUTIVE DIRECTOR, ARLINGTON NATIONAL CEMETERY 

CF: 

CHIEF, NATIONAL GUARD BUREAU 

{CONT) 

2 
Department of the Army Core Materials Relied Upon for FY2013 Administrative Furlough89

SAMR 

SUBJECT: Exception to FY 2013 Administrative Furlough 

DISTRIBUTION: (CONT) 

CHIEF, ARMY RESERVE 

COMMANDER, U.S. ARMY CYBER COMMAND 

OFFICE OF THE DEPUTY CHIEF OF STAFF FOR INTELLIGENCE, ATTN: DAMI-CP 

(MS. WATSON) 

OFFICE OF THE ASSISTANT SECRETARY OF THE ARMY (MANPOWER AND 

RESERVE AFFAIRS), ATTN: SAMR-CQ 

OFFICE OF THE GENERAL COUNSEL, ATTN: SAGC (MS. JOHNSON) 

OFFICE OF THE JUDGE ADVOCATE GENERAL, ATTN: DAJA-LE (MS. NUGENT) 

ARMED SERVICES BOARD OF CONTRACT APPEALS 

DOD EXPLOSIVES SAFETY BOARD 

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT ORGANIZATION 

SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION 

SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION 

MILITARY ENTRANCE PROCESSING COMMAND 

3