II 

108TH CONGRESS 

2D SESSION S. 2752

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

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

agency costs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 22, 2004

Mr. HATCH introduced the following bill; which was read twice and referred 

jointly pursuant to the order of August 4, 1977, to the Committee on 

the Budget and Governmental Affairs, with instructions that if one Committee reports, the other Committee have thirty days to report or be discharged 

A BILL

To reform Federal budget procedures, to impose spending 

safeguards, to combat waste, fraud, and abuse, to account for accurate Government agency costs, and for 

other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Family Budget Protection Act of 2004’’. 

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents. 
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Sec. 2. Effective date. 

TITLE I—A SIMPLE AND BINDING BUDGET 

Subtitle A—Joint Budget Resolutions 

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

Sec. 102. The timetable. 

Sec. 103. Annual joint resolutions on the budget. 

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

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

Subtitle B—Rainy Day Fund for Emergencies 

Sec. 111. Purpose. 

Sec. 112. Repeal of adjustments for emergencies. 

Sec. 113. OMB emergency criteria. 

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

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

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

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

Sec. 118. Up-to-date tabulations. 

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

Subtitle C—Biennial Budget Option 

Sec. 121. Effective date. 

Sec. 122. Revision of timetable. 

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

Act of 1974. 

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

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

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

Sec. 127. Multiyear authorizations. 

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

Sec. 129. Biennial appropriation bills. 

Sec. 130. Assistance by Federal agencies to standing committees of the Senate 

and the House of Representatives. 

Subtitle D—Prevention of Government Shutdown 

Sec. 141. Amendment to title 31. 

Subtitle E—The Baseline 

Sec. 151. Elimination of inflation adjustment. 

Sec. 152. The President’s budget. 

Sec. 153. The congressional budget. 

Sec. 154. Congressional Budget Office reports to committees. 

Sec. 155. Treatment of emergencies. 

TITLE II—PUTTING A LID ON THE FEDERAL BUDGET 

Subtitle A—Spending Safeguards on the Growth of Entitlements and 

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

Sec. 212. Exempt programs and activities. 

Sec. 213. Exceptions, limitations, and special rules. 

Sec. 214. Point of order. 

Sec. 215. Technical and conforming amendments. 

Sec. 216. Establishment of Family Budget Protection Mandatory Account. 

Subtitle B—Discretionary Spending Limits 

Sec. 221. Enforcing discretionary spending limits. 

Sec. 222. Establishment of Family Budget Protection Discretionary Account. 

TITLE III—COMBATING WASTE, FRAUD, AND ABUSE 

Subtitle A—Sunsetting 

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

Sec. 302. Point of order. 

Sec. 303. Decennial sunsetting. 

Subtitle B—Enhanced Rescissions of Budget Authority Identified by the 

President as Wasteful Spending 

Sec. 311. Enhanced consideration of certain proposed rescissions. 

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

Sec. 321. Establishment of Commission. 

Sec. 322. Duties of the Commission. 

Sec. 323. Powers of the Commission. 

Sec. 324. Commission personnel matters. 

Sec. 325. Termination of the Commission. 

Sec. 326. Congressional consideration of reform proposals. 

Sec. 327. Authorization of appropriations. 

TITLE IV—TRUTH IN ACCOUNTING 

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

Employees and Uniformed Services Personnel 

Sec. 401. Civil Service Retirement System. 

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

Sec. 403. Foreign Service Retirement and Disability System. 

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

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

Sec. 406. Coast Guard Military Retirement System. 

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

Federal Employees 

Sec. 411. Federal employees health benefits fund. 

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

Sec. 413. Effective date. 

Subtitle C—Limit on the Public Debt 

Sec. 421. Findings. 
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Sec. 422. Purpose. 

Sec. 423. Limit on public debt. 

Subtitle D—Risk-Assumed Budgeting 

Sec. 431. Purposes. 

CHAPTER 1—BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

Sec. 432. Federal insurance programs. 

CHAPTER 2—REPORTS ON LONG-TERM BUDGETARY TRENDS

Sec. 441. Reports on long-term budgetary trends. 

TITLE V—MAINTAINING A COMMITMENT TO THE FAMILY 

BUDGET 

Subtitle A—Further Enforcement Amendments 

Sec. 501. Super-majority points of order. 

Sec. 502. Budget resolution enforcement point of order. 

Sec. 503. Point of order waiver protection. 

Subtitle B—The Byrd Rule 

Sec. 511. Limitation on Byrd Rule. 

Subtitle C—Treatment of Extraneous Appropriations in Omnibus 

Appropriation Measures 

Sec. 521. Treatment of extraneous appropriations.

1 SEC. 2. EFFECTIVE DATE. 

2 Except as otherwise specifically provided, this Act 

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

5 with respect to fiscal years beginning after September 30, 

6 2005.
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1 TITLE I—A SIMPLE AND BINDING 

2 BUDGET 

3 Subtitle A—Joint Budget 

4 Resolutions 

5 SEC. 101. DECLARATION OF PURPOSES FOR THE BUDGET 

6 ACT. 

7 Paragraphs (1) and (2) of section 2 of the Congres8 sional Budget and Impoundment Control Act of 1974 are 

9 amended to read as follows: 

10 ‘‘(1) to assure effective control over the budg11 etary process; 

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

13 the appropriate level of Federal revenues and ex14 penditures by the Congress and the President;’’. 

15 SEC. 102. THE TIMETABLE. 

16 Section 300 of the Congressional Budget Act of 1974 

17 is amended to read as follows: 

18 ‘‘TIMETABLE

19 ‘‘SEC. 300. The timetable with respect to the congres20 sional budget process for any fiscal year is as follows:

‘‘On or before: Action to be completed: 

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

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

report to Budget Committees. 

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

April 1 ........................................... Senate Budget Committee reports 

joint resolution on the budget. 

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

resolution on the budget. 
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‘‘On or before: Action to be completed: 

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

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

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

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

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

2 (a) CONTENT OF ANNUAL JOINT RESOLUTIONS ON

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

4 Budget Act of 1974 is amended as follows: 

5 (1) Strike paragraph (4) and insert the fol6 lowing new paragraph: 

7 ‘‘(4) subtotals of new budget authority and out8 lays for nondefense discretionary spending, defense 

9 discretionary spending, direct spending (excluding 

10 interest), and interest; and for fiscal years to which 

11 the amendments made by subtitle B of title I of the 

12 Family Budget Protection Act of 2004 apply, sub13 totals of new budget authority and outlays for emer14 gencies;’’. 

15 (2) Strike the last sentence of such subsection. 

16 (b) ADDITIONAL MATTERS IN JOINT RESOLUTION.—

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

18 is amended as follows: 

19 (1) Strike paragraphs (2), (4), and (6) through 

20 (9). 
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1 (2) After paragraph (1), insert the following 

2 new paragraph: 

3 ‘‘(2) if submitted by the Committee on Ways 

4 and Means of the House of Representatives or the 

5 Committee on Finance of the Senate to the Com6 mittee on the Budget of that House of Congress, 

7 amend section 3101 of title 31, United States Code, 

8 to change the statutory limit on the public debt;’’. 

9 (3) After paragraph (3), insert the following 

10 new paragraph: 

11 ‘‘(4) require such other congressional proce12 dures, relating to the budget, as may be appropriate 

13 to carry out the purposes of this Act;’’; and 

14 (4) After paragraph (5), insert the following 

15 new paragraph: 

16 ‘‘(6) set forth procedures in the Senate whereby 

17 committee allocations, aggregates, and other levels 

18 can be revised for legislation if that legislation would 

19 not increase the deficit, or would not increase the 

20 deficit when taken with other legislation enacted 

21 after the adoption of the resolution, for the first fis22 cal year or the total period of fiscal years covered by 

23 the resolution.’’. 
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1 (c) REQUIRED CONTENTS OF REPORT.—Section 

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

3 amended as follows: 

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

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

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

7 (2) Before subparagraph (B) (as redesignated), 

8 insert the following new subparagraph: 

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

10 each major functional category, based on alloca11 tions of the total levels set forth pursuant to 

12 subsection (a)(1);’’. 

13 (3) In subparagraph (C) (as redesignated), 

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

15 (4) After subparagraph (C) (as redesignated), 

16 insert the following new subparagraph: 

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

18 domestic product, of total outlays, total Federal 

19 revenues, the surplus or deficit, and new out20 lays for nondefense discretionary spending, de21 fense spending, and direct spending as set forth 

22 in such resolution;’’. 

23 (5) After subparagraph (F) (as redesignated), 

24 insert the following new subparagraph: 
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1 ‘‘(G) if the joint resolution on the budget 

2 includes any allocation to a committee other 

3 than the Committee on Appropriations of levels 

4 in excess of current law levels, a justification 

5 for not subjecting any program, project, or ac6 tivity (for which the allocation is made) to an7 nual discretionary appropriations;’’. 

8 (d) ADDITIONAL CONTENTS OF REPORT.—Section 

9 301(e)(3) of the Congressional Budget Act of 1974 is 

10 amended as follows: 

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

12 subparagraphs (B) and (C), respectively, strike sub13 paragraphs (C) and (D), and redesignate subpara14 graph (E) as subparagraph (D). 

15 (2) Before subparagraph (B), insert the fol16 lowing new subparagraph: 

17 ‘‘(A) reconciliation directives described in 

18 section 310;’’. 

19 (e) PRESIDENT’S BUDGET SUBMISSION TO THE CON20 GRESS.—(1) The first two sentences of section 1105(a) 

21 of title 31, United States Code, are amended to read as 

22 follows: 

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

24 than the first Monday in February of each year the Presi25 dent shall submit a budget of the United States Govern-
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1 ment for the following fiscal year which shall set forth the 

2 following levels: 

3 ‘‘(A) totals of new budget authority and out4 lays; 

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

6 any, by which the aggregate level of Federal reve7 nues should be increased or decreased by bills and 

8 resolutions to be reported by the appropriate com9 mittees; 

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

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

12 outlays for nondefense discretionary spending, de13 fense discretionary spending, direct spending, and 

14 interest; and for fiscal years to which the amend15 ments made by subtitle B of title I of the Family 

16 Budget Protection Act of 2004 apply, subtotals of 

17 new budget authority and outlays for emergencies; 

18 and 

19 ‘‘(E) the public debt. 

20 Each budget submission shall include a budget message 

21 and summary and supporting information and, as a sepa22 rately delineated statement, the levels required in the pre23 ceding sentence for at least each of the 9 ensuing fiscal 

24 years.’’.
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1 (2) The third sentence of section 1105(a) of title 31, 

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

3 after ‘‘budget’’. 

4 (f) LIMITATION ON CONTENTS OF BUDGET RESOLU5 TIONS.—Section 305 of the Congressional Budget Act of 

6 1974 is amended by adding at the end the following new 

7 subsection: 

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

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

10 to consider any joint resolution on the budget or any 

11 amendment thereto or conference report thereon that con12 tains any matter referred to in paragraph (2). 

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

14 amendment thereto or conference report thereon that con15 tains any matter not permitted in section 301(a) or (b) 

16 shall not be treated in the House of Representatives or 

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

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

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

20 SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS 

21 MAY BE CONSIDERED 

22 (a) AMENDMENTS TO SECTION 302.—Section 302(a) 

23 of the Congressional Budget Act of 1974 is amended by 

24 striking paragraph (5). 
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1 (b) AMENDMENTS TO SECTION 303 AND CON2 FORMING AMENDMENTS.—(1) Section 303 of the Con3 gressional Budget Act of 1974 is amended by striking ‘‘(a) 

4 IN GENERAL.—’’, by striking ‘‘as reported to the House 

5 or Senate’’, by striking ‘‘to become effective’’ in paragraph 

6 (1), and by striking subsections (b) and (c); and 

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

8 following new section heading: ‘‘CONSIDERATION OF

9 BUDGET-RELATED LEGISLATION BEFORE BUDGET BE10 COMES LAW’’. 

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

12 302(g)(1) of the Congressional Budget Act of 1974 is 

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

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

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

16 ‘‘305(b)(2),’’. 

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

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

19 ‘‘305(b)(2),’’. 

20 SEC. 105. AMENDMENTS TO EFFECTUATE JOINT RESOLU21 TIONS ON THE BUDGET. 

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

23 Congressional Budget Act of 1974 is amended to read as 

24 follows: 
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1 ‘‘(4) the term ‘joint resolution on the budget’ 

2 means—

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

4 budget for the United States Government for a 

5 fiscal year as provided in section 301; and 

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

7 budget for the United States Government for a 

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

9 (b) ADDITIONAL AMENDMENTS TO THE CONGRES10 SIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF

11 1974.—(1)(A) Sections 301, 302, 303, 305, 308, 310, 

12 311, 312, 314, 405, and 904 of the Congressional Budget 

13 Act of 1974 (2 U.S.C. 621 et seq.) are amended by strik14 ing ‘‘concurrent’’ each place it appears and inserting 

15 ‘‘joint’’. 

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

17 310(d)(1) of the Congressional Budget Act of 1974 are 

18 amended by striking ‘‘most recently agreed to concurrent 

19 resolution on the budget’’ each place it occurs and insert20 ing ‘‘most recently enacted joint resolution on the budget 

21 or agreed to concurrent resolution on the budget (as appli22 cable)’’. 

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

24 by striking ‘‘adoption of concurrent resolution’’ and insert25 ing ‘‘joint resolutions’’; and 
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1 (iii) Section 304 of such Act is amended to read as 

2 follows: 

3 ‘‘PERMISSIBLE REVISIONS OF BUDGET RESOLUTIONS

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

5 the budget for a fiscal year has been enacted pursuant 

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

7 two Houses and the President may enact a joint resolution 

8 on the budget which revises or reaffirms the joint resolu9 tion on the budget for such fiscal year most recently en10 acted.’’. 

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

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

13 and by inserting ‘‘enacted’’. 

14 (2)(A) Paragraph (4) of section 3 of the Congres15 sional Budget and Impoundment Control Act of 1974 is 

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

17 and by inserting ‘‘joint’’. 

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

19 of such Act is amended—

20 (i) in the item relating to section 301, by strik21 ing ‘‘adoption of concurrent resolution’’ and insert22 ing ‘‘joint resolutions’’; 

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

24 and inserting the following:

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

law.’’;
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1 (iii) by striking ‘‘concurrent’’ and inserting 

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

3 (b) CONFORMING AMENDMENTS TO THE RULES OF

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

5 4(a)(4), 4(b)(2), 4(f)(1)(A), and 4(f)(2) of rule X, clause 

6 10 of rule XVIII, and clause 10 of rule XX of the Rules 

7 of the House of Representatives are amended by striking 

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

9 (c) CONFORMING AMENDMENTS TO THE BALANCED

10 BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF

11 1985.—Section 258C(b)(1) of the Balanced Budget and 

12 Emergency Deficit Control Act of 1985 (2 U.S.C. 

13 907d(b)(1)) is amended by striking ‘‘concurrent’’ and in14 serting ‘‘joint’’. 

15 (d) CONFORMING AMENDMENTS TO SECTION 310 

16 REGARDING RECONCILIATION DIRECTIVES.—(1) The side 

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

18 of 1974 (as amended by section 105(b)) is further amend19 ed by inserting ‘‘JOINT EXPLANATORY STATEMENT AC20 COMPANYING CONFERENCE REPORT ON’’ before ‘‘JOINT’’. 

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

22 ‘‘A’’ and inserting ‘‘The joint explanatory statement ac23 companying the conference report on a’’. 

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

25 is amended by striking ‘‘If’’ and inserting ‘‘If the joint
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1 explanatory statement accompanying the conference re2 port on’’. 

3 (4) Section 310(c)(1) of such Act is amended by in4 serting ‘‘the joint explanatory statement accompanying 

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

6 (e) CONFORMING AMENDMENTS TO SECTION 3 RE7 GARDING DIRECT SPENDING.—Section 3 of the Congres8 sional Budget and Impoundment Control Act of 1974 is 

9 amended by adding at the end the following new para10 graph: 

11 ‘‘(11) The term ‘direct spending’ has the mean12 ing given to such term in section 250(c)(8) of the 

13 Balanced Budget and Emergency Deficit Control 

14 Act of 1985.’’. 

15 Subtitle B—Rainy Day Fund for 

16 Emergencies 

17 SEC. 111. PURPOSE. 

18 The purposes of this subtitle are to—

19 (1) develop budgetary and fiscal procedures for 

20 emergencies; 

21 (2) subject spending for emergencies to budg22 etary procedures and controls; and 

23 (3) establish criteria for determining compliance 

24 with emergency requirements. 
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1 SEC. 112. REPEAL OF ADJUSTMENTS FOR EMERGENCIES. 

2 (a) ELIMINATION OF EMERGENCY DESIGNATION.—

3 Sections 252(e) and 252(d)(4)(B) of the Balanced Budget 

4 and Emergency Deficit Control Act of 1985 are repealed. 

5 (b) ELIMINATION OF ADJUSTMENTS.—Section 314 of 

6 the Congressional Budget Act of 1974 is repealed. 

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

8 XXI of the Rules of the House of Representatives is 

9 amended by repealing paragraph (e) and by redesignating 

10 paragraph (f) as paragraph (e). 

11 SEC. 113. OMB EMERGENCY CRITERIA. 

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

13 Congressional Budget and Impoundment Control Act of 

14 1974 (as amended by section 105(e)) is further amended 

15 by adding at the end the following new paragraph: 

16 ‘‘(12)(A) The term ‘emergency’ means a situa17 tion that—

18 ‘‘(i) requires new budget authority and 

19 outlays (or new budget authority and the out20 lays flowing therefrom) for the prevention or 

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

22 property, or a threat to national security; and 

23 ‘‘(ii) is unanticipated. 

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

25 ‘unanticipated’ means that the situation is—
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1 ‘‘(i) sudden, which means quickly coming 

2 into being or not building up over time; 

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

4 compelling need requiring immediate action; 

5 ‘‘(iii) unforeseen, which means not pre6 dicted or anticipated as an emerging need; and 

7 ‘‘(iv) temporary, which means not of a per8 manent duration.’’. 

9 (b) CONFORMING AMENDMENT.—The term ‘emer10 gency’ has the meaning given to such term in section 3 

11 of the Congressional Budget and Impoundment Control 

12 Act of 1974.’’. 

13 SEC. 114. DEVELOPMENT OF GUIDELINES FOR APPLICA14 TION OF EMERGENCY DEFINITION. 

15 Not later than 5 months after the date of enactment 

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

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

18 with the chairmen of the Committees on Appropriations 

19 and applicable authorizing committees of their respective 

20 Houses and the Directors of the Congressional Budget Of21 fice and the Office of Management and Budget, jointly 

22 publish in the Congressional Record guidelines for applica23 tion of the definition of emergency set forth in section 

24 3(12) of the Congressional Budget and Impoundment 

25 Control Act of 1974. 
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1 SEC. 115. RESERVE FUND FOR EMERGENCIES IN PRESI2 DENT’S BUDGET. 

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

4 amended by adding at the end the following new sen5 tences: ‘‘Such budget submission shall also comply with 

6 the requirements of section 316(b) of the Congressional 

7 Budget Act of 1974 and, in the case of any budget author8 ity requested for an emergency, such submission shall in9 clude a detailed justification of why such emergency is an 

10 emergency within the meaning of section 3(12) of the Con11 gressional Budget Act of 1974.’’. 

12 SEC. 116. ADJUSTMENTS AND RESERVE FUND FOR EMER13 GENCIES IN JOINT BUDGET RESOLUTIONS. 

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

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

16 following new section: 

17 ‘‘EMERGENCIES

18 ‘‘SEC. 316. (a) ADJUSTMENTS.—

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

20 or joint resolution or the submission of a conference 

21 report thereon that provides budget authority for 

22 any emergency as identified pursuant to subsection 

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

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

25 the Budget of the House of Representatives or 

26 the Senate shall determine and certify, pursu-
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1 ant to the guidelines referred to in section 114 

2 of the Family Budget Protection Act of 2004, 

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

4 that is for an emergency within the meaning of 

5 section 3(12); and 

6 ‘‘(B) such chairman shall make the adjust7 ment set forth in paragraph (2) for the amount 

8 of new budget authority (or outlays) in that 

9 measure and the outlays flowing from that 

10 budget authority. 

11 ‘‘(2) MATTERS TO BE ADJUSTED.—The adjust12 ments referred to in paragraph (1) are to be made 

13 to the allocations made pursuant to the appropriate 

14 joint resolution on the budget pursuant to section 

15 302(a) and shall be in an amount not to exceed the 

16 amount reserved for emergencies pursuant to the re17 quirements of subsection (b). 

18 ‘‘(b) RESERVE FUND FOR EMERGENCIES.—

19 ‘‘(1) AMOUNTS.—The amount set forth in the 

20 reserve fund for emergencies (other than those cov21 ered by subsection (c)) for budget authority and out22 lays for a fiscal year pursuant to section 301(a)(4) 

23 shall equal—

24 ‘‘(A) the average of the enacted levels of 

25 budget authority for emergencies (other than
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1 those covered by subsection (c)) in the 5 fiscal 

2 years preceding the current year; and 

3 ‘‘(B) the average of the levels of outlays 

4 for emergencies in the 5 fiscal years preceding 

5 the current year flowing from the budget au6 thority referred to in subparagraph (A), but 

7 only in the fiscal year for which such budget 

8 authority first becomes available for obligation. 

9 ‘‘(2) AVERAGE LEVELS.—For purposes of para10 graph (1), the amount used for a fiscal year to cal11 culate the average of the enacted levels when one or 

12 more of such 5 preceding fiscal years is any of fiscal 

13 years 2000 through 2004 is as follows: the amount 

14 of enacted levels of budget authority and the amount 

15 of new outlays flowing therefrom for emergencies, 

16 but only in the fiscal year for which such budget au17 thority first becomes available for obligation for each 

18 of such 5 fiscal years, which shall be determined by 

19 the Committees on the Budget of the House of Rep20 resentatives and the Senate after receipt of a report 

21 on such matter transmitted to such committees by 

22 the Director of the Congressional Budget Office 6 

23 months after the date of enactment of this section 

24 and thereafter in February of each calendar year. 
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1 ‘‘(c) TREATMENT OF EMERGENCIES TO FUND CER2 TAIN MILITARY OPERATIONS.—Whenever the Committee 

3 on Appropriations reports any bill or joint resolution that 

4 provides budget authority for any emergency that is a 

5 threat to national security and the funding of which car6 ries out a military operation authorized by a declaration 

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

8 force and the report accompanying that bill or joint resolu9 tion, pursuant to subsection (d), identifies any provision 

10 that increases outlays or provides budget authority (and 

11 the outlays flowing therefrom) for such emergency, the en12 actment of which would cause the total amount of budget 

13 authority or outlays provided for emergencies for the 

14 budget year in the joint resolution on the budget (pursu15 ant to section 301(a)(4)) to be exceeded: 

16 ‘‘(A) Such bill or joint resolution shall be re17 ferred to the Committee on the Budget of the House 

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

19 to report it without amendment, other than that 

20 specified in subparagraph (B), within 5 legislative 

21 days of the day in which it is reported from the orig22 inating committee. If the Committee on the Budget 

23 of either House fails to report a bill or joint resolu24 tion referred to it under this subparagraph within 

25 such 5-day period, the committee shall be automati-
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1 cally discharged from further consideration of such 

2 bill or joint resolution and such bill or joint resolu3 tion shall be placed on the appropriate calendar. 

4 ‘‘(B) An amendment to such a bill or joint reso5 lution referred to in this subsection shall only consist 

6 of an exemption from section 251A of the Balanced 

7 Budget and Emergency Deficit Control Act of 1985 

8 of all or any part of the provisions that provide 

9 budget authority (and the outlays flowing therefrom) 

10 for such emergency if the committee determines, 

11 pursuant to the guidelines referred to in section 114 

12 of the Family Budget Protection Act of 2004, that 

13 such budget authority is for an emergency within 

14 the meaning of section 3(12). 

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

16 with an amendment specified in subparagraph (B) 

17 by the Committee on the Budget of the House of 

18 Representatives or the Senate, then the budget au19 thority and resulting outlays that are the subject of 

20 such amendment shall not be included in any deter21 minations under section 302(f) or 311(a) for any 

22 bill, joint resolution, amendment, motion, or con23 ference report. 

24 ‘‘(d) COMMITTEE NOTIFICATION OF EMERGENCY

25 LEGISLATION.—Whenever the Committee on Appropria-
24

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1 tions or any other committee of either House (including 

2 a committee of conference) reports any bill or joint resolu3 tion that provides budget authority for any emergency, the 

4 report accompanying that bill or joint resolution (or the 

5 joint explanatory statement of managers in the case of a 

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

7 identify all provisions that provide budget authority and 

8 the outlays flowing therefrom for such emergency and in9 clude a statement of the reasons why such budget author10 ity meets the definition of an emergency pursuant to the 

11 guidelines referred to in section 114 of the Family Budget 

12 Protection Act of 2004.’’. 

13 (b) CONFORMING AMENDMENT.—The table of con14 tents set forth in section 1(b) of the Congressional Budget 

15 and Impoundment Control Act of 1974 is amended by in16 serting after the item relating to section 315 the following 

17 new item:

‘‘Sec. 316. Emergencies.’’.

18 SEC. 117. APPLICATION OF SECTION 306 TO EMERGENCIES 

19 IN EXCESS OF AMOUNTS IN RESERVE FUND. 

20 Section 306 of the Congressional Budget Act of 1974 

21 is amended by inserting at the end the following new sen22 tence: ‘‘No amendment reported by the Committee on the 

23 Budget (or from the consideration of which such com24 mittee has been discharged) pursuant to section 316(c) 

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

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

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

6 the end the following new subparagraph: 

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

8 of amounts remaining in the reserve fund for 

9 emergencies.’’. 

10 SEC. 119. PROHIBITION ON AMENDMENTS TO EMERGENCY 

11 RESERVE FUND. 

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

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

15 subsection: 

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

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

20 the amount of budget authority and outlays set forth in 

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

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

23 of the Congressional Budget Act of 1974 is amended by 

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

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

3 after ‘‘305(c)(4),’’. 

4 Subtitle C—Biennial Budget 

5 Option 

6 SEC. 121. EFFECTIVE DATE. 

7 If—

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

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

11 President includes a request that the joint resolution 

12 on the budget that will be considered during the first 

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

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

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

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

20 biennium consisting of two consecutive fiscal years; 

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

23 commences and apply to that Congress and each Congress 

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

2 Section 300 of the Congressional Budget Act of 1974 

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

4 ‘‘TIMETABLE

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

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

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

‘‘First Session 

‘‘On or before: Action to be completed:

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

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

to Budget Committees. 

Not later than 6 weeks after 

budget submission.

Committees submit views and estimates to 

Budget Committees. 

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

the biennial budget. 

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

on the biennial budget. 

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

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

biennial appropriation bill. 

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

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

‘‘Second Session 

‘‘On or before: Action to be completed:

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

Not later than 6 weeks after 

President submits budget review.

Congressional Budget Office submits report 

to Budget Committees. 

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

the succeeding biennium. 

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

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

12 of a President (except a President who succeeds himself) 
28

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1 begins, the following dates shall supersede those set forth 

2 in subsection (a):

‘‘First Session 

‘‘On or before: Action to be completed:

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

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

Budget Committees. 

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

the biennial budget. 

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

on the biennial budget. 

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

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

biennial appropriation bill. 

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

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

3 SEC. 123. AMENDMENTS TO THE CONGRESSIONAL BUDGET 

4 AND IMPOUNDMENT CONTROL ACT OF 1974. 

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

6 Congressional Budget and Impoundment Control Act of 

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

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

9 (b) DEFINITIONS.—

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

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

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

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

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

17 new paragraph:
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1 ‘‘(13) The term ‘biennium’ means the period of 

2 2 consecutive fiscal years beginning on October 1 of 

3 any odd-numbered year.’’. 

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

6 (1) CONTENTS OF RESOLUTION.—Section 

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

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

9 by—

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

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

13 (ii) striking ‘‘the fiscal year beginning 

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

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

17 (iii) striking ‘‘the fiscal year beginning 

18 on October 1 of such year’’ the second 

19 place it appears and inserting ‘‘each fiscal 

20 year in such period’’; and 

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

22 fiscal years’’ and inserting ‘‘each fiscal 

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

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

3 in the biennium’’; and 

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

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

6 in the biennium’’. 

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

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

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

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

11 in such biennium’’; and 

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

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

14 year in the biennium’’. 

15 (3) VIEWS OF OTHER COMMITTEES.—Section 

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

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

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

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

20 (2 U.S.C. 632(e)) is amended by—

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

22 ‘‘biennium’’; and 

23 (B) inserting after the second sentence the 

24 following: ‘‘On or before April 1 of each odd25 numbered year (or, if applicable, as provided by
31

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

2 of each House shall report to its House the 

3 joint resolution on the budget referred to in 

4 subsection (a) for the biennium beginning on 

5 October 1 of that year.’’. 

6 (5) GOALS FOR REDUCING UNEMPLOYMENT.—

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

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

10 (6) ECONOMIC ASSUMPTIONS.—Section 

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

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

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

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

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

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

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

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

22 Act (2 U.S.C. 633) is amended—

23 (1) in subsection (a)(1) by—
32

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

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

3 in the biennium,’’; 

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

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

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

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

9 in the biennium’’; 

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

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

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

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

15 (4) in subsection (f)(2)(A), by—

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

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

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

20 the resolution’’; and 

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

22 and inserting ‘‘May’’. 

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

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

25 a fiscal year’’ and inserting ‘‘for a biennium’’ and by strik-
33

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

2 of the biennium’’. 

3 (f) PERMISSIBLE REVISIONS OF JOINT RESOLUTIONS

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

5 635) is amended—

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

7 it appears and inserting ‘‘biennium’’; 

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

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

11 (g) PROCEDURES FOR CONSIDERATION OF BUDGET

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

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

15 (h) COMPLETION OF HOUSE COMMITTEE ACTION ON

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

17 U.S.C. 638) is amended—

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

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

20 section 300(b), July 1)’’; 

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

23 (3) by striking ‘‘fiscal year’’ and inserting ‘‘bi24 ennium’’; and 
34

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

2 odd-numbered year’’. 

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

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

5 the following new subsection: 

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

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

9 year, prepare an analysis comparing revenues, spending, 

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

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

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

16 Budget Office shall include any other information in this 

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

18 current fiscal position of the Government. The reports 

19 mandated by this subsection shall be transmitted by the 

20 Director to the Senate and House Committees on the 

21 Budget, and the Congressional Budget Office shall make 

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

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

3 U.S.C. 640) is amended—

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

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

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

7 year’’ after ‘‘July’’; 

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

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

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

13 Act (2 U.S.C. 641) is amended—

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

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

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

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

19 year covered by such resolution’’; and 

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

21 subsection (g) as subsection (f). 

22 (l) SECTION 311 POINT OF ORDER.—

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

24 Act (2 U.S.C. 642(a)) is amended—
36

S 2752 RIS 

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

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

4 place it appears and inserting ‘‘either fiscal 

5 year of the biennium’’; and 

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

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

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

9 such Act is amended—

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

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

12 fiscal year of the biennium’’; and 

13 (B) in subparagraph (B)—

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

15 the first place it appears and inserting 

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

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

18 and the ensuing fiscal years’’ and inserting 

19 ‘‘all fiscal years’’. 

20 (3) SOCIAL SECURITY LEVELS.—Section 

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

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

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

24 and 
37

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

3 years’’. 

4 (m) MAXIMUM DEFICIT AMOUNT POINT OF

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

6 of 1974 (2 U.S.C. 643) is amended—

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

8 ‘‘for a biennium’’; 

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

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

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

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

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

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

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

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

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

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

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

25 and inserting ‘‘biennium’’. 
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S 2752 RIS 

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

2 of Representatives is amended by striking ‘‘each fiscal 

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

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

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

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

8 at the end the following new subparagraph: 

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

10 study issues with long-term budgetary and economic 

11 implications, which would include—

12 ‘‘(A) hold hearings to receive testimony 

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

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

17 year, issuing a report to the Speaker which 

18 identifies the key issues facing the Congress in 

19 the next biennium.’’. 

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

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

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

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

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

25 of Representatives is amended—
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1 (1) by inserting ‘‘during each odd-numbered 

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

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

4 appears and inserting ‘‘biennium’’; and 

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

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

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

8 of Representatives is amended by striking ‘‘during the 

9 same or preceding fiscal year’’. 

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

11 the House of Representatives is amended by striking 

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

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

14 House of Representatives is amended by striking ‘‘fiscal 

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

16 inserting ‘‘biennium after September 15 of the calendar 

17 year in which such biennium begins’’. 

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

19 CODE. 

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

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

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

24 term in paragraph (13) of section 3 of the Congres-
40

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1 sional Budget and Impoundment Control Act of 

2 1974 (2 U.S.C. 622(13)).’’. 

3 (b) BUDGET CONTENTS AND SUBMISSION TO THE

4 CONGRESS.—

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

7 States Code, is amended to read as follows: 

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

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

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

11 beginning with the One Hundred Tenth Congress or a 

12 subsequent Congress (as applicable), the President shall 

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

15 transmitted under this subsection shall include a budget 

16 message and summary and supporting information. The 

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

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

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

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

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

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

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

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

25 United States Code, is amended by striking ‘‘the fis-
41

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1 cal year for which the budget is submitted and the 

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

3 fiscal year in the biennium for which the budget is 

4 submitted and in the succeeding 4 years’’. 

5 (4) BALANCE STATEMENTS.—Section 

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

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

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

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

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

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

13 year in the biennium’’. 

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

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

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

18 (7) ALLOWANCES FOR UNANTICIPATED AND

19 UNCONTROLLABLE EXPENDITURES.—Section 

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

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

22 fiscal year in the biennium for which the budget is 

23 submitted’’. 

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

25 of title 31, United States Code, is amended by strik-
42

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

2 in the biennium’’. 

3 (9) ESTIMATES FOR FUTURE YEARS.—Section 

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

5 amended—

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

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

8 in the biennium following the biennium’’; 

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

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

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

14 (10) PRIOR YEAR OUTLAYS.—Section 

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

16 amended—

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

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

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

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

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

3 amended—

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

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

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

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

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

11 (c) ESTIMATED EXPENDITURES OF LEGISLATIVE

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

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

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

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

17 Code, is amended—

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

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

20 the biennium for’’; 

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

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

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

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

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

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

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

4 to which such budget relates’’. 

5 (f) SUPPLEMENTAL BUDGET ESTIMATES AND

6 CHANGES.—

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

8 United States Code, is amended—

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

10 by—

11 (i) inserting ‘‘and before February 15 

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

13 July 16 of each year’’; and 

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

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

18 such biennium’’; 

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

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

21 fiscal years following the biennium’’; and 

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

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

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

25 United States Code, is amended by—
45

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1 (A) striking ‘‘the fiscal year’’ and inserting 

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

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

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

5 16 of each year’’. 

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

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

9 31, United States Code, is amended—

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

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

13 the same time the budget required by section 

14 1105 is submitted for a biennium’’; and 

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

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

17 (2) JOINT ECONOMIC COMMITTEE.—Section 

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

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

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

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

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

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

3 Code, is amended by—

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

5 31’’; and 

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

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

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

11 OF APPROPRIATION ACTS. 

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

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

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

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

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

21 support of the Government shall be enacted for a biennium 

22 and shall specify the amount of appropriations provided 

23 for each fiscal year in such period. 

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

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

2 U.S.C. 622(13)).’’. 

3 SEC. 127. MULTIYEAR AUTHORIZATIONS. 

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

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

6 further amended by adding at the end the following new 

7 section: 

8 ‘‘MULTIYEAR AUTHORIZATIONS OF APPROPRIATIONS

9 ‘‘SEC. 317. (a) It shall not be in order in the House 

10 of Representatives or the Senate to consider any measure 

11 that contains a specific authorization of appropriations for 

12 any purpose unless the measure includes such a specific 

13 authorization of appropriations for that purpose for not 

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

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

17 enactment of an amount of appropriations or amounts not 

18 to exceed an amount of appropriations (whether stated as 

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

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

22 an authorization of appropriations for a single fiscal year 

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

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

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

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

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

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

9 amended by adding after the item relating to section 316 

10 the following new item:

‘‘Sec. 317. Multiyear authorizations of appropriations.’’.

11 SEC. 128. GOVERNMENT STRATEGIC AND PERFORMANCE 

12 PLANS ON A BIENNIAL BASIS. 

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

14 United States Code, is amended—

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

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

17 (2) in subsection (b)—

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

19 and all that follows thereafter and inserting ‘‘at 

20 least every 4 years, except that strategic plans 

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

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

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

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

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

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

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

10 fiscal year 2010, a biennial’’. 

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

12 United States Code, is amended—

13 (1) in subsection (a)—

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

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

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

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

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

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

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

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

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

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

3 after the inserted semicolon; and 

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

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

8 budget cycle.’’; 

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

10 inserting ‘‘biennial’’; and 

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

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

16 (1) in subsection (a)—

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

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

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

21 (2) in subsection (e)—

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

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

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

4 (C) in the third sentence by striking 

5 ‘‘three’’ and inserting ‘‘four’’. 

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

7 United States Code, is amended—

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

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

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

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

12 except that strategic plans submitted by September 

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

14 30, 2010’’; 

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

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

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

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

20 September 30, 2007, meeting the requirements of 

21 subsection (a)’’. 

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

23 39, United States Code, is amended—

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

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

3 2 of the biennial plan’’; 

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

5 the semicolon;

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

7 inserting ‘‘; and’’; and 

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

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

11 budget cycle.’’. 

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

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

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

15 of the Senate or the House of Representatives shall review 

16 the strategic plans, performance plans, and performance 

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

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

19 United States Code, of all agencies under the jurisdiction 

20 of the committee. Each committee may provide its views 

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

22 of the applicable House.’’. 

23 SEC. 129. BIENNIAL APPROPRIATION BILLS. 

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

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

2 subparagraph: 

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

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

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

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

9 a biennium. 

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

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

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

14 stating the following: ‘Congress finds that no additional 

15 funding beyond one fiscal year will be required and the 

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

17 will be completed or terminated after the amount provided 

18 has been expended.’. 

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

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

22 activity may be included in a general appropriation bill 

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

2 rule XXII of the House of Representatives is amended by 

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

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

6 HOUSE OF REPRESENTATIVES. 

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

9 the House of Representatives and the Senate in carrying 

10 out its responsibilities, the head of each Federal agency 

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

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

16 (b) INFORMATION REGARDING AGENCY PROGRAM

17 ADMINISTRATION.—To assist each standing committee of 

18 the House of Representatives and the Senate in carrying 

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

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

23 or specifically compiled pursuant to a request in support 

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

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

7 and studied by such committee under this section, the 

8 Comptroller General of the United States shall furnish to 

9 such committee summaries of any audits or reviews of 

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

12 (d) CONGRESSIONAL ASSISTANCE.—Consistent with 

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

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

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

2 Government Shutdown 

3 SEC. 141. AMENDMENT TO TITLE 31. 

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

5 States Code, is amended by inserting after section 1310 

6 the following new section: 

7 ‘‘§ 1311. Continuing appropriations 

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

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

10 does not become law before the beginning of such fiscal 

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

13 money in the Treasury not otherwise appropriated, and 

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

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

16 project or activity for which funds were provided in the 

17 preceding fiscal year—

18 ‘‘(A) in the corresponding regular appropriation 

19 Act for such preceding fiscal year; or 

20 ‘‘(B) if the corresponding regular appropriation 

21 bill for such preceding fiscal year did not become 

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

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

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

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

4 regular appropriation Act providing for such project 

5 or activity for the preceding fiscal year; 

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

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

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

11 regular appropriation bill as passed by the House of 

12 Representatives or the Senate for the fiscal year in 

13 question, except that the lower of these two versions 

14 shall be ignored for any project or activity for which 

15 there is a budget request if no funding is provided 

16 for that project or activity in either version; or 

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

18 for in the most recently enacted joint resolution 

19 making continuing appropriations for part of that 

20 fiscal year or any funding levels established under 

21 the provisions of this Act. 

22 ‘‘(3) The applicable rate of operations otherwise de23 termined under paragraph (2) for any project or activity 

24 for any fiscal year shall be reduced as follows: 
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1 ‘‘(A) Beginning January 1, by 1 percent for a 

2 project or activity covered by this section at any 

3 time during the period of January 1 through March 

4 31. 

5 ‘‘(B) Beginning April 1, by 2 percent for a 

6 project or activity covered by this section at any 

7 time during the period of April 1 through June 30. 

8 ‘‘(C) Beginning July 1, by 3 percent for a 

9 project or activity covered by this section at any 

10 time during the period of July 1 through September 

11 30. 

12 ‘‘(4) Appropriations and funds made available, and 

13 authority granted, for any fiscal year pursuant to this sec14 tion for a project or activity shall be available for the pe15 riod beginning with the first day of a lapse in appropria16 tions and ending with the earlier of—

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

18 appropriation bill for such fiscal year becomes law 

19 (whether or not such law provides for such project 

20 or activity) or a continuing resolution making appro21 priations becomes law, as the case may be; or 

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

23 ‘‘(b) An appropriation or funds made available, or au24 thority granted, for a project or activity for any fiscal year 

25 pursuant to this section shall be subject to the terms and 
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1 conditions imposed with respect to the appropriation made 

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

3 authority granted for such project or activity under cur4 rent law. 

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

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

7 year pursuant to this section shall cover all obligations or 

8 expenditures incurred for such project or activity during 

9 the portion of such fiscal year for which this section ap10 plies to such project or activity. 

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

12 any fiscal year pursuant to this section shall be charged 

13 to the applicable appropriation, fund, or authorization 

14 whenever a regular appropriation bill or a joint resolution 

15 making continuing appropriations until the end of a fiscal 

16 year providing for such project or activity for such period 

17 becomes law. 

18 ‘‘(e) This section shall not apply to a project or activ19 ity during a fiscal year if any other provision of law (other 

20 than an authorization of appropriations)—

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

22 available, or grants authority for such project or ac23 tivity to continue for such period; or 

24 ‘‘(2) specifically provides that no appropriation 

25 shall be made, no funds shall be made available, or 
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1 no authority shall be granted for such project or ac2 tivity to continue for such period. 

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

4 appropriation bill’ means any annual appropriation bill 

5 making appropriations, otherwise making funds available, 

6 or granting authority, for any of the following categories 

7 of projects and activities: 

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

9 Drug Administration, and related agencies pro10 grams. 

11 ‘‘(2) The Departments of Commerce, Justice, 

12 and State, the Judiciary, and related agencies. 

13 ‘‘(3) The Department of Defense. 

14 ‘‘(4) The government of the District of Colum15 bia and other activities chargeable in whole or in 

16 part against the revenues of the District. 

17 ‘‘(5) Energy and water development. 

18 ‘‘(6) Foreign operations, export financing, and 

19 related programs. 

20 ‘‘(7) The Department of Homeland Security. 

21 ‘‘(8) The Department of the Interior and re22 lated agencies. 

23 ‘‘(9) The Departments of Labor, Health and 

24 Human Services, and Education, and related agen25 cies.
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1 ‘‘(10) The Legislative Branch. 

2 ‘‘(11) Military construction, family housing, and 

3 base realignment and closure for the Department of 

4 Defense. 

5 ‘‘(12) The Departments of Transportation and 

6 Treasury, and independent agencies. 

7 ‘‘(13) The Departments of Veterans Affairs and 

8 Housing and Urban Development, and sundry inde9 pendent agencies, boards, commissions, corporations, 

10 and offices.’’. 

11 (b) CLERICAL AMENDMENT.—The analysis of chap12 ter 13 of title 31, United States Code, is amended by in13 serting after the item relating to section 1310 the fol14 lowing new item:

‘‘1311. Continuing appropriations.’’.

15 Subtitle E—The Baseline 

16 SEC. 151. ELIMINATION OF INFLATION ADJUSTMENT. 

17 Section 257(c) of the Balanced Budget and Emer18 gency Deficit Control Act of 1985 is amended—

19 (1) in paragraph (1) by striking ‘‘for inflation 

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

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

22 paragraph (6) as paragraph (5). 

23 SEC. 152. THE PRESIDENT’S BUDGET. 

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

25 United States Code, is amended to read as follows: 
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1 ‘‘(5) except as provided in subsection (b) of this 

2 section, estimated expenditures and appropriations 

3 for the current year and estimated expenditures and 

4 proposed appropriations the President decides are 

5 necessary to support the Government in the fiscal 

6 year for which the budget is submitted and the 4 fis7 cal years following that year, and, except for detailed 

8 budget estimates, the percentage change from the 

9 current year to the fiscal year for which the budget 

10 is submitted for estimated expenditures and for ap11 propriations.’’. 

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

13 Code, is amended to read as follows: 

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

15 the current year and the fiscal year for which the 

16 budget is submitted and the 4 fiscal years after that 

17 year under—

18 ‘‘(A) laws in effect when the budget is sub19 mitted; and 

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

21 revenues, 

22 and the percentage change (in the case of each cat23 egory referred to in subparagraphs (A) and (B)) be24 tween the current year and the fiscal year for which 

25 the budget is submitted and between the current 
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1 year and each of the 9 fiscal years after the fiscal 

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

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

4 Code, is amended to read as follows: 

5 ‘‘(12) for each proposal in the budget for legis6 lation that would establish or expand a Government 

7 activity or function, a table showing—

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

9 for appropriation and for expenditure because 

10 of the proposal in the fiscal year for which the 

11 budget is submitted; 

12 ‘‘(B) the estimated appropriation required 

13 because of the proposal for each of the 4 fiscal 

14 years after that year that the proposal will be 

15 in effect; and 

16 ‘‘(C) the estimated amount for the same 

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

18 year, 

19 and, except for detailed budget estimates, the per20 centage change (in the case of each category re21 ferred to in subparagraphs (A), (B), and (C)) be22 tween the current year and the fiscal year for which 

23 the budget is submitted.’’. 
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1 (d) Section 1105(a)(18) of title 31, United States 

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

3 and’’ before ‘‘budget outlays’’. 

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

5 is amended by adding at the end the following new para6 graphs: 

7 ‘‘(35) a comparison of levels of estimated ex8 penditures and proposed appropriations for each 

9 function and subfunction in the current fiscal year 

10 and the fiscal year for which the budget is sub11 mitted, along with the proposed increase or decrease 

12 of spending in percentage terms for each function 

13 and subfunction. 

14 ‘‘(36) a table on sources of growth in total di15 rect spending under current law and as proposed in 

16 this budget submission for the budget year and the 

17 ensuing 9 fiscal years, which shall include changes 

18 in outlays attributable to the following: cost-of-living 

19 adjustments; changes in the number of program re20 cipients; increases in medical care prices, utilization 

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

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

23 is amended by inserting after the first sentence the fol24 lowing new sentence: ‘‘For discretionary spending, these 

25 estimates shall assume the levels set forth in the discre-
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1 tionary spending limits under section 251(b) of the Bal2 anced Budget and Emergency Deficit Control Act of 1985, 

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

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

5 adjusted levels for the most recent fiscal year for which 

6 such levels were in effect).’’. 

7 SEC. 153. THE CONGRESSIONAL BUDGET. 

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

9 1974 (as amended by section 103) is further amended—

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

11 the following: ‘‘The basis of deliberations in devel12 oping such joint resolution shall be the estimated 

13 budgetary levels for the preceding fiscal year. Any 

14 budgetary levels pending before the committee and 

15 the text of the joint resolution shall be accompanied 

16 by a document comparing such levels or such text to 

17 the estimated levels of the prior fiscal year. Any 

18 amendment offered in the committee that changes a 

19 budgetary level and is based upon a specific policy 

20 assumption for a program, project, or activity shall 

21 be accompanied by a document indicating the esti22 mated amount for such program, project, or activity 

23 in the current year.’’; and 

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

25 end of subparagraph (H) (as redesignated), by strik-
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1 ing the period and inserting ‘‘; and’’ at the end of 

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

3 at the end the following new subparagraph: 

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

5 fiscal year with proposed spending and revenue 

6 levels for the subsequent fiscal years along with 

7 the proposed increase or decrease of spending 

8 in percentage terms for each function.’’. 

9 SEC. 154. CONGRESSIONAL BUDGET OFFICE REPORTS TO 

10 COMMITTEES. 

11 (a) The first sentence of section 202(e)(1) of the Con12 gressional Budget Act of 1974 is amended by inserting 

13 ‘‘compared to comparable levels for the current year’’ be14 fore the comma at the end of subparagraph (A) and before 

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

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

17 Act of 1974 is amended by inserting after the first sen18 tence the following new sentence: ‘‘Such report shall also 

19 include a table on sources of spending growth in total di20 rect spending for the budget year and the ensuing 4 fiscal 

21 years, which shall include changes in outlays attributable 

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

23 number of program recipients; increases in medical care 

24 prices, utilization and intensity of medical care; and resid25 ual factors.’’.
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1 (c) Section 308(a)(1)(B) of the Congressional Budget 

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

3 a comparison of those levels to comparable levels for the 

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

5 SEC. 155. TREATMENT OF EMERGENCIES. 

6 Section 257(c) of the Balanced Budget and Emer7 gency Deficit Control Act of 1985 (as amended by section 

8 151) is further amended by adding at the end the fol9 lowing new paragraph: 

10 ‘‘(6) EMERGENCIES.—Budgetary resources for 

11 emergencies shall be at the level provided in the re12 serve fund for emergencies for that fiscal year pur13 suant to section 301(a)(4) of the Congressional 

14 Budget Act of 1974.’’.

15 TITLE II—PUTTING A LID ON 

16 THE FEDERAL BUDGET

17 Subtitle A—Spending Safeguards 

18 on the Growth of Entitlements 

19 and Mandatories 

20 SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS 

21 AND MANDATORIES. 

22 (a) CONTROL OF ENTITLEMENTS AND

23 MANDATORIES.—The Balanced Budget and Emergency 

24 Deficit Control Act of 1985 is amended by adding after 

25 section 252 the following new section: 
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1 ‘‘SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING. 

2 ‘‘(a) CAP ON GROWTH OF ENTITLEMENTS.—Effec3 tive for fiscal year 2006 and for each ensuing fiscal year, 

4 the total level of direct spending for all direct spending 

5 programs, projects, and activities (excluding social secu6 rity) for any such fiscal year shall not exceed the total 

7 level of spending for all such programs, projects, and ac8 tivities for the previous fiscal year after the direct spend9 ing for each such program, project, or activity is increased 

10 by the inflator (if any) applicable to that program, project, 

11 or activity and the growth in eligible population for such, 

12 project, or activity. 

13 ‘‘(b) SEQUESTRATION.—Within 15 days after Con14 gress adjourns to end a session (other than of the second 

15 session of the One Hundred Eighth Congress), and on the 

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

17 there shall be a sequestration to reduce the amount of di18 rect spending for the fiscal year beginning in the year the 

19 Congress adjourns by any amount necessary to reduce 

20 such spending to the level set forth in subsection (a) un21 less that amount is less than $250,000,000. 

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

23 amount required to be sequestered for the fiscal year 

24 under subsection (a) shall be obtained from nonexempt di25 rect spending accounts by actions taken in the following 

26 order: 
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1 ‘‘(1) FIRST.—The reductions in the programs 

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

3 special milk), section 256(b) (guaranteed student 

4 loans), and section 256(c) (foster care and adoption 

5 assistance) shall be made. 

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

7 may be required shall be achieved by reducing each 

8 remaining nonexempt direct spending account by the 

9 uniform percentage necessary to achieve those addi10 tional reductions, except that—

11 ‘‘(A) the low-income programs specified in 

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

13 than 2 percent;

14 ‘‘(B) the retirement and veterans benefits 

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

16 not be reduced by more than 2 percent in the 

17 manner specified in that section; and 

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

19 reduced by more than 2 percent in the manner 

20 specified in section 256(i). 

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

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

23 iteration the uniform percentage applicable to all 

24 other programs under this paragraph shall be in-
70

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1 creased (if necessary) to a level sufficient to achieve 

2 the reductions required by this paragraph.’’. 

3 (b) TABLE OF CONTENTS AMENDMENT.—The table 

4 of contents set forth in 250(c) of the Balanced Budget 

5 and Emergency Deficit Control Act of 1985 is amended 

6 by adding after the item relating to section 252 the fol7 lowing new item:

‘‘Sec. 252A. Enforcing controls on direct spending.’’.

8 SEC. 212. EXEMPT PROGRAMS AND ACTIVITIES. 

9 Section 255 of the Balanced Budget and Emergency 

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

11 ‘‘SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES. 

12 ‘‘(a) SOCIAL SECURITY BENEFITS; TIER I RAILROAD

13 RETIREMENT BENEFITS; AND CERTAIN MEDICARE BEN14 EFITS.—(1) Benefits payable under the old-age, survivors, 

15 and disability insurance program established under title 

16 II of the Social Security Act, and benefits payable under 

17 section 3(a), 3(f)(3), 4(a), or 4(f) of the Railroad Retire18 ment Act of 1974, shall be exempt from reduction under 

19 any order issued under this part. 

20 ‘‘(2) Payments made under part A of title XVIII (re21 lating to part A medicare hospital insurance benefits) of 

22 the Social Security Act and payments made under part 

23 C of such title (relating to the Medicare Advantage pro24 gram) insofar as they are attributable to part A of such
71

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1 title shall be exempt from reduction under any order 

2 issued under this part. 

3 ‘‘(b) DESCRIPTIONS AND LISTS.—The following 

4 budget accounts or activities shall be exempt from seques5 tration: 

6 ‘‘(1) net interest; 

7 ‘‘(2) all payments to trust funds from excise 

8 taxes or other receipts or collections properly cred9 itable to those trust funds; 

10 ‘‘(3) all payments from one Federal direct 

11 spending budget account to another Federal budget 

12 account; and all intragovernmental funds including 

13 those from which funding is derived primarily from 

14 other Government accounts, except to the extent 

15 that such funds are augmented by direct appropria16 tions for the fiscal year for which the order is in ef17 fect; 

18 ‘‘(4) activities resulting from private donations, 

19 bequests, or voluntary contributions to the Govern20 ment; 

21 ‘‘(5) payments from any revolving fund or 

22 trust-revolving fund (or similar activity) that pro23 vides deposit insurance or other Government insur24 ance, Government guarantees, or any other form of 

25 contingent liability, to the extent those payments re-
72

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1 sult from contractual or other legally binding com2 mitments of the Government at the time of any se3 questration; 

4 ‘‘(6) credit liquidating and financing accounts; 

5 ‘‘(7) the following accounts, which largely fulfill 

6 requirements of the Constitution or otherwise make 

7 payments to which the Government is committed: 

8 ‘‘Administration of Territories, Northern 

9 Mariana Islands Covenant grants (14–0412–0–

10 1–806); 

11 ‘‘Armed Forces Retirement Home Trust 

12 Fund, payment of claims (84–8930–0–7–705); 

13 ‘‘Bureau of Indian Affairs, miscellaneous 

14 payments to Indians (14–230–0–1–452); 

15 ‘‘Bureau of Indian Affairs, miscellaneous 

16 trust funds, tribal trust funds (14–9973–0–7–

17 999); 

18 ‘‘Claims, defense; 

19 ‘‘Claims, judgments, and relief act (20–

20 185–0–1–806); 

21 ‘‘Compact of Free Association, economic 

22 assistance pursuant to Public Law 99 (14–

23 0414–0–1–806); 

24 ‘‘Compensation of the President (11–

25 0001–0–1–802); 
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1 ‘‘Customs Service, miscellaneous perma2 nent appropriations (20–9992–0–2–852); 

3 ‘‘Eastern Indian land claims settlement 

4 fund (14–2202–0–1–806); 

5 ‘‘Farm Credit Administration, Limitation 

6 on Administration Expenses (78–4131–0–3–

7 351); 

8 ‘‘Farm Credit System Financial Assistance 

9 Corporation, interest payments (20–1850–0–1–

10 351); 

11 ‘‘Internal Revenue collections of Puerto 

12 Rico (20–5737–0–2–852); 

13 ‘‘Panama Canal Commission, operating ex14 penses and capital outlay (95–5190–0–2–403); 

15 ‘‘Payments of Vietnam and USS Pueblo 

16 prisoner-of-war claims (15–0104–0–1–153); 

17 ‘‘Payments to copyright owners (03–5175–

18 0–2–376); 

19 ‘‘Payments to health care trust funds (75–

20 0580–0–1–571); 

21 ‘‘Payments to social security trust funds 

22 (75–0404–0–1–651); 

23 ‘‘Payments to the United States terri24 tories, fiscal assistance (14–0418–0–1–801); 
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1 ‘‘Payments to widows and heirs of de2 ceased Members of Congress (00–0215–0–1–

3 801); 

4 ‘‘Pension Benefit Guaranty Corporation 

5 Fund (16–4204–0–3–601); 

6 ‘‘Salaries of Article III judges; 

7 ‘‘Washington Metropolitan Area Transit 

8 Authority, interest payments (46–0300–0–1–

9 401); 

10 ‘‘(8) the following noncredit special, revolving, 

11 or trust-revolving funds: 

12 ‘‘Coinage profit fund (20–5811–0–2–803); 

13 ‘‘Comptroller of the Currency; 

14 ‘‘Director of the Office of Thrift Super15 vision; 

16 ‘‘Exchange Stabilization Fund (20–4444–

17 0–3–155); 

18 ‘‘Federal Housing Finance Board; 

19 ‘‘Foreign Military Sales trust fund (11–

20 82232–0–7–155); 

21 ‘‘National Credit Union Administration, 

22 central liquidating facility (25–4470–0–3–373); 

23 ‘‘National Credit Union Administration, 

24 credit union insurance fund (25–4468–0–3–

25 373); 
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1 ‘‘National Credit Union Administration op2 erating fund (25–4056–0–3–373); and 

3 ‘‘Resolution Trust Corporation Revolving 

4 Fund (22–4055–0–3–373); 

5 ‘‘(9) Thrift Savings Fund; 

6 ‘‘(10) appropriations for the District of Colum7 bia to the extent they are appropriations of locally 

8 raised funds; 

9 ‘‘(11)(A) any amount paid as regular unemploy10 ment compensation by a State from its account in 

11 the Unemployment Trust Fund (established by sec12 tion 904(a) of the Social Security Act); 

13 ‘‘(B) any advance made to a State from the 

14 Federal unemployment account (established by sec15 tion 904(g) of such Act) under title XII of such Act 

16 and any advance appropriated to the Federal unem17 ployment account pursuant to section 1203 of such 

18 Act; and 

19 ‘‘(C) any payment made from the Federal Em20 ployees Compensation Account (as established under 

21 section 909 of such Act) for the purpose of carrying 

22 out chapter 85 of title 5, United States Code, and 

23 funds appropriated or transferred to or otherwise 

24 deposited in such Account; and
76

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1 ‘‘(12)(A) FDIC, Bank Insurance Fund (51–

2 4064–0–3–373); 

3 ‘‘(B) FDIC, FSLIC Resolution Fund (51–

4 4065–0–3–373); and 

5 ‘‘(C) FDIC, Savings Association Insurance 

6 Fund (51–4066–0–3–373); 

7 ‘‘(c) FEDERAL RETIREMENT AND DISABILITY AC8 COUNTS.—The following Federal retirement and disability 

9 accounts shall be exempt from reduction under any order 

10 issued under this part: 

11 ‘‘Civil service retirement and disability fund 

12 (24–8135–0–7–602). 

13 ‘‘Black Lung Disability Trust Fund (20–8144–

14 0–7–601). 

15 ‘‘Foreign Service Retirement and Disability 

16 Fund (19–8186–0–7–602). 

17 ‘‘District of Columbia Judicial Retirement and 

18 Survivors Annuity Fund (20–8212–0–7–602). 

19 ‘‘Judicial Survivors’ Annuities Fund (10–8110–

20 0–7–602). 

21 ‘‘Payments to the Railroad Retirement Ac22 counts (60–0113–0–1–601). 

23 ‘‘Tax Court Judges Survivors Annuity Fund 

24 (23–8115–0–7–602). 
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1 ‘‘Employees Life Insurance Fund (24–8424–0–

2 8–602). 

3 ‘‘(d) FEDERAL ADMINISTRATIVE EXPENSES.—

4 ‘‘(1) Notwithstanding any provision of law 

5 other than paragraph (3), administrative expenses 

6 incurred by the departments and agencies, including 

7 independent agencies, of the Government in connec8 tion with any program, project, activity, or account 

9 shall be subject to reduction pursuant to any seques10 tration order, without regard to any exemption, ex11 ception, limitation, or special rule otherwise applica12 ble with respect to such program, project, activity, 

13 or account, and regardless of whether the program, 

14 project, activity, or account is self-supporting and 

15 does not receive appropriations. 

16 ‘‘(2) Payments made by the Government to re17 imburse or match administrative costs incurred by a 

18 State or political subdivision under or in connection 

19 with any program, project, activity, or account shall 

20 not be considered administrative expenses of the 

21 Government for purposes of this section, and shall 

22 be subject to sequestration to the extent (and only 

23 to the extent) that other payments made by the Gov24 ernment under or in connection with that program, 

25 project, activity, or account are subject to that re-
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1 duction or sequestration; except that Federal pay2 ments made to a State as reimbursement of admin3 istrative costs incurred by that State under or in 

4 connection with the unemployment compensation 

5 programs specified in subsection (a)(11) shall be 

6 subject to reduction or sequestration under this part 

7 notwithstanding the exemption otherwise granted to 

8 such programs under that subsection. 

9 ‘‘(3) Notwithstanding any other provision of 

10 law, the administrative expenses of the following 

11 programs shall be exempt from sequestration: 

12 ‘‘(A) Comptroller of the Currency. 

13 ‘‘(B) Federal Deposit Insurance Corpora14 tion. 

15 ‘‘(C) Office of Thrift Supervision. 

16 ‘‘(D) National Credit Union Administra17 tion. 

18 ‘‘(E) National Credit Union Administra19 tion, central liquidity facility. 

20 ‘‘(F) Federal Retirement Thrift Invest21 ment Board. 

22 ‘‘(G) Resolution Funding Corporation. 

23 ‘‘(H) Resolution Trust Corporation. 

24 ‘‘(I) Board of Governors of the Federal 

25 Reserve System. 
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1 ‘‘(e) VETERANS’ PROGRAMS.—The following pro2 grams shall be exempt from reduction under any order 

3 issued under this part: 

4 ‘‘General Post Funds (36–8180–0–7–705). 

5 ‘‘Veterans Insurance and Indemnities (36–

6 0120–0–1–701). 

7 ‘‘Service-Disabled Veterans Insurance Funds 

8 (36–4012–0–3–701). 

9 ‘‘Veterans Reopened Insurance Fund (36–

10 4010–0–3–701). 

11 ‘‘Servicemembers’ Group Life Insurance Fund 

12 (36–4009–0–3–701). 

13 ‘‘Post-Vietnam Era Veterans Education Ac14 count (36–8133–0–7–702). 

15 ‘‘National Service Life Insurance Fund (36–

16 8132–0–7–701). 

17 ‘‘United States Government Life Insurance 

18 Fund (36–8150–0–7–701). 

19 ‘‘Veterans Special Life Insurance Fund (36–

20 8455–0–8–701). 

21 ‘‘(f) OPTIONAL EXEMPTION OF DEFENSE AND

22 HOMELAND SECURITY ACCOUNTS.—

23 ‘‘(1) IN GENERAL.—The President may, with 

24 respect to any defense or homeland security account, 

25 exempt that account from sequestration or provide 
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1 for a lower uniform percentage reduction than would 

2 otherwise apply. 

3 ‘‘(2) LIMITATION.—The President may not use 

4 the authority provided by paragraph (1) unless the 

5 President notifies the Congress of the manner in 

6 which such authority will be exercised on or before 

7 the date specified in section 254(a) for the budget 

8 year.’’. 

9 SEC. 213. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES. 

10 (a) IN GENERAL.—Section 256 of the Balanced 

11 Budget and Emergency Deficit Control Act of 1985 is 

12 amended to read as follows: 

13 ‘‘SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL 

14 RULES. 

15 ‘‘(a) NATIONAL WOOL ACT AND THE SPECIAL MILK

16 PROGRAM.—Automatic spending increases are increases 

17 in outlays due to changes in indexes in the following pro18 grams: 

19 ‘‘(1) National Wool Act; and 

20 ‘‘(2) Special milk program. 

21 In those programs all amounts other than the automatic 

22 spending increases shall be exempt from reduction under 

23 any sequestration order.

24 ‘‘(b) THE GUARANTEED STUDENT LOAN PRO25 GRAM.—(1) Any reductions which are required to be
81

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1 achieved from the student loan programs operated pursu2 ant to part B of title IV of the Higher Education Act of 

3 1965 under any sequestration order shall be achieved only 

4 from loans described in paragraphs (2) and (3) by the ap5 plication of the measures described in such paragraphs. 

6 ‘‘(2) For any loan made during the period beginning 

7 on the date that a sequestration order takes effect with 

8 respect to a fiscal year, the rate used in computing the 

9 special allowance payment pursuant to section 

10 438(b)(2)(A)(iii) of such Act for each of the first four spe11 cial allowance payments for such loan shall be adjusted 

12 by reducing such rate by the lesser of—

13 ‘‘(A) 0.40 percent, or 

14 ‘‘(B) the percentage by which the rate specified 

15 in such section exceeds 3 percent. 

16 ‘‘(3) For any loan made during the period beginning 

17 on the date that a sequestration order takes effect with 

18 respect to a fiscal year, the origination fee which is author19 ized to be collected pursuant to section 438(c)(2) of such 

20 Act shall be increased by 0.50 percent. 

21 ‘‘(c) FOSTER CARE AND ADOPTION ASSISTANCE

22 PROGRAMS.—Any sequestration order shall make the re23 duction otherwise required under the foster care and adop24 tion assistance programs (established by part E of title 

25 IV of the Social Security Act) only with respect to pay-
82

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1 ments and expenditures made by States in which increases 

2 in foster care maintenance payment rates or adoption as3 sistance payment rates (or both) are to take effect during 

4 the fiscal year involved, and only to the extent that the 

5 required reduction can be accomplished by applying a uni6 form percentage reduction to the Federal matching pay7 ments that each such State would otherwise receive under 

8 section 474 of that Act (for such fiscal year) for that por9 tion of the State’s payments attributable to the increases 

10 taking effect during that year. No State’s matching pay11 ments from the Government for foster care maintenance 

12 payments or for adoption assistance maintenance pay13 ments may be reduced by a percentage exceeding the ap14 plicable domestic sequestration percentage. No State may, 

15 after the date of the enactment of this Act, make any 

16 change in the timetable for making payments under a 

17 State plan approved under part E of title IV of the Social 

18 Security Act which has the effect of changing the fiscal 

19 year in which expenditures under such part are made. 

20 ‘‘(d) LOW-INCOME PROGRAMS.—(1) Benefit pay21 ments or payments to States or other entities for the pro22 grams listed in paragraph (2) shall not be reduced by 

23 more than 2 percent under any sequestration order. When 

24 reduced under an end-of-session sequestration order, those 

25 benefit reductions shall occur starting with the payment 
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1 made at the start of January. When reduced under a with2 in-session sequestration order, those benefit reductions 

3 shall occur starting with the next periodic payment. 

4 ‘‘(2) The programs referred to in paragraph (1) are 

5 the following: 

6 ‘‘Child Nutrition (12–3539–0–1–605). 

7 ‘‘Food Stamp Programs (12–3505–0–1–605). 

8 ‘‘Grants to States for Medicaid (75–0512–0–1–

9 551). 

10 ‘‘State Children’s Health Insurance Fund (75–

11 0515–0–1–551). 

12 ‘‘Supplemental Security Income Program (75–

13 0406–0–1–609). 

14 ‘‘Temporary Assistance for Needy Families 

15 (75–1552–0–1–609). 

16 ‘‘Special supplemental nutrition program for 

17 women, infants, and children (WIC) (12–3510–0–1–

18 605). 

19 ‘‘(e) VETERANS’ MEDICAL CARE.—The maximum 

20 permissible reduction in budget authority for Veterans’ 

21 medical care (36–0160–0–1–703) for any fiscal year, pur22 suant to an order issued under section 254, shall be 2 

23 percent. 

24 ‘‘(f) FEDERAL RETIREMENT PROGRAMS.—
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1 ‘‘(1) For each of the programs listed in para2 graph (2) and except as provided in paragraph (3), 

3 monthly (or other periodic) benefit payments shall 

4 be reduced by the uniform percentage applicable to 

5 direct spending sequestrations for such programs, 

6 which shall in no case exceed 2 percent under any 

7 sequestration order. When reduced under an end-of8 session sequestration order, those benefit reductions 

9 shall occur starting with the payment made at the 

10 start of January or 7 weeks after the order is 

11 issued, whichever is later. When reduced under a 

12 within-session sequestration order, those benefit re13 ductions shall occur starting with the next periodic 

14 payment. 

15 ‘‘(2) The programs subject to paragraph (1) 

16 are: 

17 ‘‘Central Intelligence Agency Retirement 

18 and Disability Fund (56–3400–0–1–054). 

19 ‘‘Comptrollers General Retirement System 

20 (05–0107–0–1–801). 

21 ‘‘Judicial Officer’ Retirement Fund (10–

22 8122–0–7–602). 

23 ‘‘Claims Judges’ Retirement Fund (10–

24 8124–0–7–602). 
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1 ‘‘Pensions for former Presidents (47–

2 0105–0–1–802). 

3 ‘‘National Oceanic and Atmospheric Ad4 ministration Retirement (13–1450–0–1–306). 

5 ‘‘Railroad Industry Pension Fund (60–

6 8011–0–7–601). 

7 ‘‘Retired pay, Coast Guard (70–0602–0–1–

8 403). 

9 ‘‘Retirement pay and medical benefits for 

10 commissioned officers, Public Health Service 

11 (75–0379–0–1–551). 

12 ‘‘Payments to Civil Service Retirement and 

13 Disability Fund (24–0200–0–1–805). 

14 ‘‘Payments to the Foreign Service Retire15 ment and Disability Fund (72–1036–0–1–153). 

16 ‘‘Payments to Judiciary Trust Funds (10–

17 0941–0–1–752). 

18 ‘‘(g) VETERANS PROGRAMS.—To achieve the total 

19 percentage reduction required by any order issued under 

20 this part, the percentage reduction that shall apply to pay21 ments under the following programs shall in no event ex22 ceed 2 percent:

23 ‘‘Canteen Service Revolving Fund (36–4014–0–

24 3–705). 
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1 ‘‘Medical Center Research Organizations (36–

2 4026–0–3–703). 

3 ‘‘Disability Compensation Benefits (36–0102–

4 0–1–701). 

5 ‘‘Education Benefits (36–0137–0–1–702). 

6 ‘‘Vocational Rehabilitation and Employment 

7 Benefits (36–0135–0–1–702). 

8 ‘‘Pensions Benefits (36–0154–0–1–701). 

9 ‘‘Burial Benefits (36–0139–0–1–701). 

10 ‘‘Guaranteed Transitional Housing Loans For 

11 Homeless Veterans Program Account (36–1119–0–

12 1–704). 

13 ‘‘Housing Direct Loan Financing Account (36–

14 4127–0–1–704). 

15 ‘‘Housing Guaranteed Loan Financing Account 

16 (36–4129–0–3–704). 

17 ‘‘Vocational Rehabilitation and Education Di18 rect Loan Financing Account (36–4259–0–3–702). 

19 ‘‘(h) MILITARY RETIREMENT.—To achieve the total 

20 percentage reduction in military retirement required by 

21 any order issued under this part, the percentage reduction 

22 that shall apply to payments under the Military retirement 

23 fund (97–8097–0–7–602) and payments to the military 

24 retirement fund (97–0040–0–1–054) shall in no event ex25 ceed 2 percent. 
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1 ‘‘(i) MEDICARE PROGRAM.—

2 ‘‘(1) CALCULATION OF REDUCTION IN INDI3 VIDUAL PAYMENT AMOUNTS.—To achieve the total 

4 percentage reduction in those programs required by 

5 any order issued under this part, the percentage re6 duction that shall apply to payments under the 

7 health insurance programs under title XVIII of the 

8 Social Security Act (other than payments described 

9 in section 255(a)(2)) for services furnished after any 

10 sequestration order is issued shall be such that the 

11 reduction made in payments under that order shall 

12 achieve the required total percentage reduction in 

13 those payments for that fiscal year as determined on 

14 a 12-month basis. However, the percentage reduc15 tion under any such program shall in no case exceed 

16 2 percent under any sequestration order. 

17 ‘‘(2) TIMING OF APPLICATION OF REDUC18 TIONS.—If a reduction is made under paragraph (1) 

19 in payment amounts pursuant to a sequestration 

20 order, the reduction shall be applied to payment for 

21 services furnished after the effective date of the 

22 order. 

23 ‘‘(3) NO INCREASE IN BENEFICIARY CHARGES

24 IN ASSIGNMENT-RELATED CASES.—If a reduction in 

25 payment amounts is made under paragraph (1) for 
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1 services for which payment under part B of title 

2 XVIII of the Social Security Act is made on the 

3 basis of an assignment described in section 

4 1842(b)(3)(B)(ii), in accordance with section 

5 1842(b)(6)(B), or under the procedure described in 

6 section 1870(f)(1) of such Act, the person furnishing 

7 the services shall be considered to have accepted 

8 payment of the reasonable charge for the services, 

9 less any reduction in payment amount made pursu10 ant to a sequestration order, as payment in full. 

11 ‘‘(4) APPLICATION TO PARTS C AND D.—The 

12 reductions otherwise required under parts C and D 

13 of title XVIII of the Social Security Act with respect 

14 to a fiscal year shall be applied to the calendar that 

15 begins after the end of the fiscal year to which the 

16 applicable sequestration order applies. 

17 ‘‘(j) FEDERAL PAY.—

18 ‘‘(1) IN GENERAL.—For purposes of any order 

19 issued under section 254, new budget authority to 

20 pay Federal personnel shall be reduced by the appli21 cable uniform percentage, but no sequestration order 

22 may reduce or have the effect of reducing the rate 

23 of pay to which any individual is entitled under any 

24 statutory pay system (as increased by any amount 

25 payable under section 5304 of title 5, United States 
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1 Code, or section 302 of the Federal Employees Pay 

2 Comparability Act of 1990) or the rate of any ele3 ment of military pay to which any individual is enti4 tled under title 37, United States Code, or any in5 crease in rates of pay which is scheduled to take ef6 fect under section 5303 of title 5, United States 

7 Code, section 1009 of title 37, United States Code, 

8 or any other provision of law. 

9 ‘‘(2) DEFINITIONS.—For purposes of this sub10 section: 

11 ‘‘(A) The term ‘statutory pay system’ shall 

12 have the meaning given that term in section 

13 5302(1) of title 5, United States Code. 

14 ‘‘(B) The term ‘elements of military pay’ 

15 means—

16 ‘‘(i) the elements of compensation of 

17 members of the uniformed services speci18 fied in section 1009 of title 37, United 

19 States Code, 

20 ‘‘(ii) allowances provided members of 

21 the uniformed services under sections 403a 

22 and 405 of such title, and 

23 ‘‘(iii) cadet pay and midshipman pay 

24 under section 203(c) of such title. 
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1 ‘‘(C) The term ‘uniformed services’ shall 

2 have the meaning given that term in section 

3 101(3) of title 37, United States Code.

4 ‘‘(k) CHILD SUPPORT ENFORCEMENT PROGRAM.—

5 Any sequestration order shall accomplish the full amount 

6 of any required reduction in expenditures under sections 

7 455 and 458 of the Social Security Act by reducing the 

8 Federal matching rate for State administrative costs 

9 under such program, as specified (for the fiscal year in10 volved) in section 455(a) of such Act, to the extent nec11 essary to reduce such expenditures by that amount. 

12 ‘‘(l) EXTENDED UNEMPLOYMENT COMPENSATION.—

13 (1) A State may reduce each weekly benefit payment made 

14 under the Federal-State Extended Unemployment Com15 pensation Act of 1970 for any week of unemployment oc16 curring during any period with respect to which payments 

17 are reduced under an order issued under this title by a 

18 percentage not to exceed the percentage by which the Fed19 eral payment to the State under section 204 of such Act 

20 is to be reduced for such week as a result of such order. 

21 ‘‘(2) A reduction by a State in accordance with sub22 paragraph (A) shall not be considered as a failure to fulfill

23 the requirements of section 3304(a)(11) of the Internal 

24 Revenue Code of 1954. 

25 ‘‘(m) COMMODITY CREDIT CORPORATION.—
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1 ‘‘(1) POWERS AND AUTHORITIES OF THE COM2 MODITY CREDIT CORPORATION.—This title shall not 

3 restrict the Commodity Credit Corporation in the 

4 discharge of its authority and responsibility as a cor5 poration to buy and sell commodities in world trade, 

6 to use the proceeds as a revolving fund to meet 

7 other obligations and otherwise operate as a corpora8 tion, the purpose for which it was created. 

9 ‘‘(2) REDUCTION IN PAYMENTS MADE UNDER

10 CONTRACTS.—(A) Payments and loan eligibility 

11 under any contract entered into with a person by the 

12 Commodity Credit Corporation prior to the time any 

13 sequestration order has been issued shall not be re14 duced by an order subsequently issued. Subject to 

15 subparagraph (B), after any sequestration order is 

16 issued for a fiscal year, any cash payments made by 

17 the Commodity Credit Corporation—

18 ‘‘(i) under the terms of any one-year con19 tract entered into in or after such fiscal year 

20 and after the issuance of the order; and 

21 ‘‘(ii) out of an entitlement account, 

22 to any person (including any producer, lender, or 

23 guarantee entity) shall be subject to reduction under 

24 the order. 
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1 ‘‘(B) Each contract entered into with producers 

2 or producer cooperatives with respect to a particular 

3 crop of a commodity and subject to reduction under 

4 subparagraph (A) shall be reduced in accordance 

5 with the same terms and conditions. If some, but 

6 not all, contracts applicable to a crop of a com7 modity have been entered into prior to the issuance 

8 of any sequestration order, the order shall provide 

9 that the necessary reduction in payments under con10 tracts applicable to the commodity be uniformly ap11 plied to all contracts for succeeding crops of the 

12 commodity, under the authority provided in para13 graph (3). 

14 ‘‘(3) DELAYED REDUCTION IN OUTLAYS PER15 MISSIBLE.—Notwithstanding any other provision of 

16 this title, if any sequestration order is issued with 

17 respect to a fiscal year, any reduction under the 

18 order applicable to contracts described in paragraph 

19 (2) may provide for reductions in outlays for the ac20 count involved to occur in the fiscal years following 

21 the fiscal year to which the order applies. 

22 ‘‘(4) UNIFORM PERCENTAGE RATE OF REDUC23 TION AND OTHER LIMITATIONS.—All reductions de24 scribed in paragraph (2) that are required to be 
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1 made in connection with any sequestration order 

2 with respect to a fiscal year—

3 ‘‘(A) shall be made so as to ensure that 

4 outlays for each program, project, activity, or 

5 account involved are reduced by a percentage 

6 rate that is uniform for all such programs, 

7 projects, activities, and accounts, and may not 

8 be made so as to achieve a percentage rate of 

9 reduction in any such item exceeding the rate 

10 specified in the order; and 

11 ‘‘(B) with respect to commodity price sup12 port and income protection programs, shall be 

13 made in such manner and under such proce14 dures as will attempt to ensure that—

15 ‘‘(i) uncertainty as to the scope of 

16 benefits under any such program is mini17 mized; 

18 ‘‘(ii) any instability in market prices 

19 for agricultural commodities resulting from 

20 the reduction is minimized; and 

21 ‘‘(iii) normal production and mar22 keting relationships among agricultural 

23 commodities (including both contract and 

24 non-contract commodities) are not dis25 torted. 
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1 In meeting the criterion set out in clause (iii) 

2 of subparagraph (B) of the preceding sentence, 

3 the President shall take into consideration that 

4 reductions under an order may apply to pro5 grams for two or more agricultural commodities 

6 that use the same type of production or mar7 keting resources or that are alternative com8 modities among which a producer could choose 

9 in making annual production decisions. 

10 ‘‘(5) CERTAIN AUTHORITY NOT TO BE LIM11 ITED.—Nothing in this title shall limit or reduce in 

12 any way any appropriation that provides the Com13 modity Credit Corporation with funds to cover the 

14 Corporation’s net realized losses. 

15 ‘‘(n) POSTAL SERVICE FUND.—Notwithstanding any 

16 other provision of law, any sequestration of the Postal 

17 Service Fund shall be accomplished by a payment from 

18 that Fund to the General Fund of the Treasury, and the 

19 Postmaster General of the United States shall make the 

20 full amount of that payment during the fiscal year to 

21 which the presidential sequestration order applies. 

22 ‘‘(o) EFFECTS OF SEQUESTRATION.—The effects of 

23 sequestration shall be as follows: 

24 ‘‘(1) Budgetary resources sequestered from any 

25 account other than an entitlement trust, special, or 
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1 revolving fund account shall revert to the Treasury 

2 and be permanently canceled. 

3 ‘‘(2) Except as otherwise provided, the same 

4 percentage sequestration shall apply to all programs, 

5 projects, and activities within a budget account (with 

6 programs, projects, and activities as delineated in 

7 the appropriation Act or accompanying report for 

8 the relevant fiscal year covering that account, or for 

9 accounts not included in appropriation Acts, as de10 lineated in the most recently submitted President’s 

11 budget). 

12 ‘‘(3) Administrative regulations or similar ac13 tions implementing a sequestration shall be made 

14 within 120 days of the sequestration order. To the 

15 extent that formula allocations differ at different 

16 levels of budgetary resources within an account, pro17 gram, project, or activity, the sequestration shall be 

18 interpreted as producing a lower total appropriation, 

19 with that lower appropriation being obligated as 

20 though it had been the pre-sequestration appropria21 tion and no sequestration had occurred.

22 ‘‘(4) Except as otherwise provided, obligations 

23 in sequestered direct spending accounts shall be re24 duced in the fiscal year in which a sequestration oc25 curs and in all succeeding fiscal years. 
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1 ‘‘(5) If an automatic spending increase is se2 questered, the increase (in the applicable index) that 

3 was disregarded as a result of that sequestration 

4 shall not be taken into account in any subsequent 

5 fiscal year. 

6 ‘‘(6) Except as otherwise provided, sequestra7 tion in accounts for which obligations are indefinite 

8 shall be taken in a manner to ensure that obliga9 tions in the fiscal year of a sequestration and suc10 ceeding fiscal years are reduced, from the level that 

11 would actually have occurred, by the applicable se12 questration percentage.’’. 

13 (b) CONFORMING AMENDMENT.—The table of con14 tents set forth in 250(c) of the Balanced Budget and 

15 Emergency Deficit Control Act of 1985 is amended by 

16 amending the item relating to section 256 to read as fol17 lows:

‘‘Sec. 256. Exceptions, limitations, and special rules.’’.

18 SEC. 214. POINT OF ORDER. 

19 (a) ENTITLEMENT POINT OF ORDER.—Section 312 

20 of the Congressional Budget Act of 1974 is amended by 

21 adding at the end the following new subsection: 

22 ‘‘(g) ENTITLEMENT POINT OF ORDER.—It shall not 

23 be in order in the House of Representatives or the Senate 

24 to consider any bill, joint resolution, amendment, or con25 ference report that—
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1 ‘‘(1) increases aggregate level of direct spending 

2 for any ensuing fiscal year or 

3 ‘‘(2) includes any provision that has the effect 

4 of modifying the application of section 252A of the 

5 Balanced Budget and Emergency Deficit Control 

6 Act of 1985 to any entitlement program subject to 

7 sequestration or exempt from sequestration under 

8 such Act.’’. 

9 SEC. 215. TECHNICAL AND CONFORMING AMENDMENTS. 

10 The Balanced Budget and Emergency Deficit Control 

11 Act of 1985 is amended as follows: 

12 (1) Section 251(a)(1) is amended by inserting 

13 ‘‘, section 252A,’’ after ‘‘section 252’’. 

14 (2) Section 254(c)(4)(B) is amended by insert15 ing ‘‘or section 252A’’ after ‘‘section 252’’. 

16 (3) Section 254(c) is amended by redesignating 

17 paragraph (5) as paragraph (6) and by inserting 

18 after paragraph (4) the following new paragraph: 

19 ‘‘(5) DIRECT SPENDING CONTROL SEQUESTRA20 TION REPORTS.—The preview reports shall set forth, 

21 for the current year and the budget year, estimates 

22 for each of the following: 

23 ‘‘(A) The total level of direct spending for 

24 all programs, projects, and activities (excluding 

25 social security). 
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1 ‘‘(B) The sequestration percentage or (if 

2 the required sequestration percentage is greater 

3 than the maximum allowable percentage for 

4 medicare) percentages necessary to comply with 

5 section 252A.’’. 

6 (4) Section 254(f) is amended by redesignating 

7 paragraphs (4) and (5) as paragraphs (5) and (6) 

8 and by inserting after paragraph (3) the following 

9 new paragraph: 

10 ‘‘(4) DIRECT SPENDING CONTROL SEQUESTRA11 TION REPORTS.—The final reports shall contain all 

12 the information required in the direct spending con13 trol sequestration preview reports. In addition, these 

14 reports shall contain, for the budget year, for each 

15 account to be sequestered, estimates of the baseline 

16 level of sequesterable budgetary resources and re17 sulting outlays and the amount of budgetary re18 sources to be sequestered and resulting outlay reduc19 tions. The reports shall also contain estimates of the 

20 effects on outlays of the sequestration in each out21 year for direct spending programs.’’. 

22 (5) Section 258C(a)(1) is amended by inserting 

23 ‘‘, 252A,’’ after ‘‘section 252’’. 
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1 SEC. 216. ESTABLISHMENT OF FAMILY BUDGET PROTEC2 TION MANDATORY ACCOUNT. 

3 The Rules of the House of Representatives are 

4 amended by redesignating rule XXVIII as rule XXX and 

5 by inserting after rule XXVII the following new rule: 

6 ‘‘RULE XXVIII 

7 ‘‘FAMILY BUDGET PROTECTION MANDATORY ACCOUNT. 

8 ‘‘1. (a) The chairman of the Committee on the Budg9 et shall maintain an account to be known as the ‘Family 

10 Budget Protection Mandatory Account’. The Account 

11 shall be divided into entries corresponding to the House 

12 committees that received allocations under section 302(a) 

13 of the Congressional Budget Act of 1974 in the most re14 cently adopted concurrent resolution on the budget, except 

15 that it shall not include the Committee on Appropriations 

16 and each entry shall consist of the ‘First Year Family 

17 Budget Protection Balance’ and the ‘Five Year Family 

18 Budget Protection Balance’. 

19 ‘‘(b) Each entry shall consist only of amounts cred20 ited to it under paragraph (c). No entry of a negative 

21 amount shall be made. 

22 ‘‘(c) Whenever a Member offers an amendment to a 

23 bill that reduces the amount of mandatory budget author24 ity provided either under current law or proposed to be 

25 provided by the bill under consideration, that Member may 

26 state the portion of such reduction achieved in the first 
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1 year covered by the most recently adopted concurrent reso2 lution on the budget and in addition the portion of such 

3 reduction achieved in the first five years covered by the 

4 most recently adopted concurrent resolution on the budget 

5 that shall be—

6 ‘‘(1) credited to the First Year Family Budget 

7 Protection Balance and the Five Year Family Budg8 et Protection Balance; 

9 ‘‘(2) used to offset an increase in other new 

10 budget authority; or

11 ‘‘(3) allowed to remain within the applicable 

12 section 302(a) allocation. 

13 If no such statement is made, the amount of reduction 

14 in new budget authority resulting from the amendment 

15 shall be credited to the First Year Family Budget Protec16 tion Balance and the Five Year Family Budget Protection 

17 Balance, as applicable, if the amendment is agreed to. 

18 ‘‘2. (a) Except as provided by paragraph (b), the 

19 chairman of the Committee on the Budget shall, upon the 

20 engrossment of any bill, other than an appropriation bill,

21 by the House, credit to the applicable entry balances 

22 amounts of new budget authority and outlays equal to the 

23 net amounts of reductions in budget authority and in out24 lays resulting from amendments agreed to by the House 

25 to that bill. 
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1 ‘‘(b) When computing the net amounts of reductions 

2 in budget authority and in outlays resulting from amend3 ments agreed to by the House to a bill, the chairman of 

4 the Committee on the Budget shall only count those por5 tions of such amendments agreed to that were so des6 ignated by the Members offering such amendments as 

7 amounts to be credited to the First Year Family Budget 

8 Protection Balance and the Five Year Family Budget Pro9 tection Balance, or that fall within the last sentence of 

10 clause 1. 

11 ‘‘3. The chairman of the Committee on the Budget 

12 shall maintain a running tally of the amendments adopted 

13 reflecting increases and decreases of budget authority in 

14 the bill as reported. This tally shall be available to Mem15 bers during consideration of any bill by the House. 

16 ‘‘4. For the purposes of enforcing section 302(a) of 

17 the Congressional Budget Act of 1974, upon the engross18 ment of any bill, other than an appropriation bill, by the 

19 House, the amount of budget authority and outlays cal20 culated pursuant to paragraph 2(b) shall be counted 

21 against the 302(a) allocation provided to the applicable 

22 committee or committees which reported the bill as if the 

23 amount calculated pursuant to clause 2(b) was included 

24 in the bill just engrossed. 
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1 ‘‘5. As used in this rule, the term ‘appropriation bill’ 

2 means any general or special appropriation bill, and any 

3 bill or joint resolution making supplemental, deficiency, or 

4 continuing appropriations through the end of fiscal year 

5 2005 or any subsequent fiscal year, as the case may be.’’.

6 Subtitle B—Discretionary 

7 Spending Limits 

8 SEC. 221. ENFORCING DISCRETIONARY SPENDING LIMITS. 

9 (a) DISCRETIONARY SPENDING LIMITS.—Sections 

10 251(b) and (c) of the Balanced Budget and Emergency 

11 Deficit Control of Act of 1985 are amended to read as 

12 follows: 

13 ‘‘(b) DISCRETIONARY SPENDING LIMIT.—As used in 

14 this part, the term ‘discretionary spending limit’ means—

15 ‘‘(1) with respect to fiscal year 2006—

16 ‘‘(A) $816,697,800,000 in new budget au17 thority of which no more than 

18 $431,533,400,000 shall be for the nondefense 

19 category; and 

20 ‘‘(B) $llll in outlays of which no 

21 more than $llll shall be for the non22 defense category; 

23 ‘‘(2) with respect to fiscal year 2007—

24 ‘‘(A) $834,665,100,000 in new budget au25 thority of which no more than 
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1 $441,027,200,000 shall be for the nondefense 

2 category; and 

3 ‘‘(B) $llll in outlays of which no 

4 more than $llll shall be for the non5 defense category; 

6 ‘‘(3) with respect to fiscal year 2008—

7 ‘‘(A) $853,027,800,000 in new budget au8 thority of which no more than 

9 $450,729,800,000 shall be for the nondefense 

10 category; and 

11 ‘‘(B) $llll in outlays of which no 

12 more than $llll shall be for the non13 defense category; 

14 ‘‘(4) with respect to fiscal year 2009—

15 ‘‘(A) $871,794,400,000 in new budget au16 thority of which no more than 

17 $460,645,800,000 shall be for the nondefense 

18 category; and 

19 ‘‘(B) $llll in outlays of which no 

20 more than $llll shall be for the non21 defense category; 

22 ‘‘(5) with respect to fiscal year 2010—

23 ‘‘(A) $890,973,900,000 in new budget au24 thority of which no more than 
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1 $470,780,000,000 shall be for the nondefense 

2 category; and 

3 ‘‘(B) $llll in outlays of which no 

4 more than $llll shall be for the non5 defense category; 

6 ‘‘(6) with respect to fiscal year 2011—

7 ‘‘(A) $910,575,300,000 in new budget au8 thority of which no more than 

9 $481,137,200,000 shall be for the nondefense 

10 category; and 

11 ‘‘(B) $llll in outlays of which no 

12 more than $llll shall be for the non13 defense category; 

14 ‘‘(7) with respect to fiscal year 2012—

15 ‘‘(A) $930,607,900,000 in new budget au16 thority of which no more than 

17 $491,722,200,000 shall be for the nondefense 

18 category; and

19 ‘‘(B) $llll in outlays of which no 

20 more than $llll shall be for the non21 defense category; 

22 ‘‘(8) with respect to fiscal year 2013—

23 ‘‘(A) $951,081,300,000 in new budget au24 thority of which no more than 
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1 $502,540,100,000 shall be for the nondefense 

2 category; and 

3 ‘‘(B) $llll in outlays of which no 

4 more than $llll shall be for the non5 defense category; and 

6 ‘‘(9) with respect to fiscal year 2014—

7 ‘‘(A) $972,005,100,000 in new budget au8 thority of which no more than 

9 $513,596,000,000 shall be for the nondefense 

10 category; and 

11 ‘‘(B) $llll in outlays of which no 

12 more than $llll shall be for the non13 defense category;’’. 

14 (b) DISCRETIONARY SPENDING LIMIT POINT OF

15 ORDER.—Section 312 of the Congressional Budget Act of 

16 1974 (as amended by section 214(a)) is further amended 

17 by adding at the end the following new subsection: 

18 ‘‘(h) DISCRETIONARY SPENDING LIMIT POINT OF

19 ORDER.—It shall not be in order in the House of Rep20 resentatives or the Senate to consider any bill, joint resolu21 tion, amendment, or conference report that—

22 ‘‘(1) increases the discretionary spending limits 

23 for any ensuing fiscal year after the budget year; or 

24 ‘‘(2) would cause the discretionary spending 

25 limits for the budget year to be breached.’’. 
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1 (c) ADVANCE APPROPRIATION POINT OF ORDER.—

2 Section 312 of the Congressional Budget Act of 1974 (as 

3 amended by this section) is further amended by adding 

4 at the end the following new subsection: 

5 ‘‘(i) ADVANCE APPROPRIATION POINT OF ORDER.—

6 It shall not be in order in the House of Representatives 

7 or the Senate to consider any appropriation bill or joint 

8 resolution, or amendment thereto or conference report 

9 thereon, that provides advance discretionary new budget 

10 authority that first becomes available for any fiscal year 

11 after the budget year at an amount for any program, 

12 project, or activity above the amount of appropriations for 

13 fiscal year 2004 for such program, project, or activity.’’.

14 SEC. 222. ESTABLISHMENT OF FAMILY BUDGET PROTEC15 TION DISCRETIONARY ACCOUNT. 

16 The Rules of the House of Representatives are 

17 amended by inserting after rule XXVIII the following new 

18 rule: 

19 ‘‘RULE XXIX 

20 ‘‘FAMILY BUDGET PROTECTION DISCRETIONARY

21 ACCOUNT. 

22 ‘‘1. (a) The chairman of the Committee on the Budg23 et shall maintain an account to be known as the ‘Family 

24 Budget Protection Discretionary Account’. The Account 

25 shall be divided into entries corresponding to the sub-
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1 committees of the Committee on Appropriations and each 

2 entry shall consist of the ‘Family Budget Protection Bal3 ance’. 

4 ‘‘(b) Each entry shall consist only of amounts cred5 ited to it under paragraph (c). No entry of a negative 

6 amount shall be made. 

7 ‘‘(c) Whenever a Member offers an amendment to an 

8 appropriation bill to reduce new budget authority in any 

9 account, that Member may state the portion of such reduc10 tion that shall be—

11 ‘‘(1) credited to the Family Budget Protection 

12 Balance; 

13 ‘‘(2) used to offset an increase in new budget 

14 authority in any other account; or 

15 ‘‘(3) allowed to remain within the applicable 

16 section 302(b) suballocation. 

17 If no such statement is made, the amount of reduction 

18 in new budget authority resulting from the amendment 

19 shall be credited to the Family Budget Protection Bal20 ance, as applicable, if the amendment is agreed to. 

21 ‘‘2. (a) Except as provided by paragraph (b), the 

22 chairman of the Committee on the Budget shall, upon the 

23 engrossment of any appropriation bill by the House of 

24 Representatives, credit to the entry balance amounts of 

25 new budget authority and outlays equal to the net 
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1 amounts of reductions in new budget authority and in out2 lays resulting from amendments agreed to by the House 

3 to that bill. 

4 ‘‘(b) When computing the net amounts of reductions 

5 in new budget authority and in outlays resulting from 

6 amendments agreed to by the House to an appropriation 

7 bill, the chairman of the Committee on the Budget shall 

8 only count those portions of such amendments agreed to 

9 that were so designated by the Members offering such 

10 amendments as amounts to be credited to the Family 

11 Budget Protection Balance, or that fall within the last 

12 sentence of clause 1. 

13 ‘‘3. The chairman of the Committee on the Budget 

14 shall maintain a running tally of the amendments adopted 

15 reflecting increases and decreases of budget authority in 

16 the bill as reported. This tally shall be available to Mem17 bers during consideration of any appropriation bill by the 

18 House. 

19 ‘‘4. (a) For purposes of enforcing section 302(a) of 

20 the Congressional Budget Act of 1974, upon the engross21 ment of any appropriation bill by the House, the amount 

22 of budget authority and outlays calculated pursuant to 

23 clause 2(b) shall be counted against the 302(a) allocation 

24 provided to the Committee on Appropriations as if the 
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1 amount calculated pursuant to such clause was included 

2 in the bill just engrossed. 

3 ‘‘(b) For purposes of enforcing section 302(b) of the 

4 Congressional Budget Act of 1974, upon the engrossment 

5 of any appropriation bill by the House, the 302(b) alloca6 tion provided to the subcommittee for the bill just en7 grossed shall be deemed to have been reduced by the 

8 amount of budget authority and outlays calculated, pursu9 ant to clause 2(b). 

10 ‘‘5. As used in this rule, the term ‘appropriation bill’ 

11 means any general or special appropriation bill, and any 

12 bill or joint resolution making supplemental, deficiency, or 

13 continuing appropriations through the end of fiscal year 

14 2005 or any subsequent fiscal year or biennium, as the 

15 case may be.’’.

16 TITLE III—COMBATING WASTE, 

17 FRAUD, AND ABUSE 

18 Subtitle A—Sunsetting 

19 SEC. 301. REAUTHORIZATION OF DISCRETIONARY PRO20 GRAMS AND UNEARNED ENTITLEMENTS. 

21 (a) FISCAL YEAR 2008.—Effective October 1, 2007, 

22 spending authority for each unearned entitlement and 

23 high-cost discretionary spending program is frozen at then 

24 current levels unless such spending authority is reauthor25 ized after the date of enactment of this Act. 
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1 (b) FISCAL YEAR 2009.—Effective October 1, 2008, 

2 spending authority for each discretionary spending pro3 gram (not including high-cost discretionary spending pro4 grams) is frozen at then current levels unless such spend5 ing authority is reauthorized after the date of enactment 

6 of this Act. 

7 (c) DEFINITIONS.—For purposes of this title—

8 (1) the term ‘‘unearned entitlement’’ means an 

9 entitlement not earned by service or paid for in total 

10 or in part by assessments or contributions such as 

11 Social Security, veterans’ benefits, retirement pro12 grams, and medicare; and 

13 (2) the term ‘‘high-cost discretionary program’’ 

14 means the most expensive one-third of discretionary 

15 program within each budget function account. 

16 SEC. 302. POINT OF ORDER. 

17 (a) IN GENERAL.—It shall not be in order in the 

18 House of Representatives or the Senate to consider any 

19 bill, joint resolution, amendment, or conference report that 

20 includes any provision that appropriates funds above cur21 rent levels unless such appropriation has been previously 

22 authorized by law. 

23 (b) WAIVER OR SUSPENSION.—This section may be 

24 waived or suspended in the House of Representatives or 
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1 the Senate only by the affirmative vote of two-thirds of 

2 the Members, duly chosen and sworn. 

3 SEC. 303. DECENNIAL SUNSETTING. 

4 (a) FIRST DECENNIAL CENSUS YEAR.—Effective on 

5 the first day of the fiscal year beginning in the first decen6 nial census year after the year 2010 and each 10 years 

7 thereafter, the spending authority described in section 

8 301(a) is terminated unless such spending authority is re9 authorized after the last date the spending authority was 

10 required to be reauthorized under this title. 

11 (b) FIRST DECENNIAL CENSUS YEAR.—Effective on 

12 the first day of the fiscal year beginning in the year after 

13 the first decennial census year after the year 2010 and 

14 each 10 years thereafter, the spending authority described 

15 in section 301(b) is terminated unless such spending au16 thority is reauthorized after the last date the spending au17 thority was required to be reauthorized under this title.

18 Subtitle B—Enhanced Rescissions 

19 of Budget Authority Identified 

20 by the President as Wasteful 

21 Spending 

22 SEC. 311. ENHANCED CONSIDERATION OF CERTAIN PRO23 POSED RESCISSIONS. 

24 (a) IN GENERAL.—Part B of title X of the Congres25 sional Budget and Impoundment Control Act of 1974 (2 
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1 U.S.C. 681 et seq.) is amended by redesignating sections 

2 1013 through 1017 as sections 1014 through 1018, re3 spectively, and by inserting after section 1012 the fol4 lowing new section: 

5 ‘‘ENHANCED CONSIDERATION OF CERTAIN PROPOSED

6 RESCISSIONS

7 ‘‘SEC. 1013. (a) PROPOSED RESCISSION OF BUDGET

8 AUTHORITY IDENTIFIED AS WASTEFUL SPENDING.—The 

9 President may propose, at the time and in the manner 

10 provided in subsection (b), the rescission of any budget 

11 authority provided in an appropriation Act that he identi12 fies as wasteful spending. If the President proposes a re13 scission of budget authority, he may also propose to reduce 

14 the appropriate discretionary spending limits for new 

15 budget authority and outlays flowing therefrom set forth 

16 in section 251(b) of the Balanced Budget and Emergency 

17 Deficit Control Act of 1985 by an amount that does not 

18 exceed the amount of the proposed rescission. Funds made 

19 available for obligation under this procedure may not be 

20 proposed for rescission again under this section. 

21 ‘‘(b) TRANSMITTAL OF SPECIAL MESSAGE.—

22 ‘‘(1) The President may transmit to Congress a 

23 special message proposing to rescind amounts of 

24 budget authority and include with that special mes25 sage a draft bill that, if enacted, would only rescind 

26 that budget authority unless the President also pro-
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1 poses a reduction in the appropriate discretionary 

2 spending limits set forth in section 251(b) of the 

3 Balanced Budget and Emergency Deficit Control 

4 Act of 1985. That bill shall clearly identify the 

5 amount of budget authority that is proposed to be 

6 rescinded for each program, project, or activity to 

7 which that budget authority relates. 

8 ‘‘(2) In the case of an appropriation Act that 

9 includes accounts within the jurisdiction of more 

10 than one subcommittee of the Committee on Appro11 priations, the President in proposing to rescind 

12 budget authority under this section shall send a sep13 arate special message and accompanying draft bill 

14 for accounts within the jurisdiction of each sub15 committee. 

16 ‘‘(3) Each special message shall specify, with 

17 respect to the budget authority proposed to be re18 scinded, the following: 

19 ‘‘(A) The amount of budget authority 

20 which he proposes to be rescinded. 

21 ‘‘(B) Any account, department, or estab22 lishment of the Government to which such 

23 budget authority is available for obligation, and 

24 the specific project or governmental functions 

25 involved. 
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1 ‘‘(C) The reasons why the budget authority 

2 should be rescinded, including why he considers 

3 it to be wasteful spending. 

4 ‘‘(D) To the maximum extent practicable, 

5 the estimated fiscal, economic, and budgetary 

6 effect (including the effect on outlays and re7 ceipts in each fiscal year) of the proposed re8 scission. 

9 ‘‘(E) All facts, circumstances, and consid10 erations relating to or bearing upon the pro11 posed rescission and the decision to effect the 

12 proposed rescission, and to the maximum extent 

13 practicable, the estimated effect of the proposed 

14 rescission upon the objects, purposes, and pro15 grams for which the budget authority is pro16 vided. 

17 ‘‘(F) A reduction in the appropriate discre18 tionary spending limits set forth in section 

19 251(b) of the Balanced Budget and Emergency 

20 Deficit Control Act of 1985, if proposed by the 

21 President. 

22 ‘‘(c) PROCEDURES FOR EXPEDITED CONSIDER23 ATION.—

24 ‘‘(1)(A) Before the close of the second legisla25 tive day of the House of Representatives after the 
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1 date of receipt of a special message transmitted to 

2 Congress under subsection (b), the majority leader 

3 or minority leader of the House of Representatives 

4 shall introduce (by request) the draft bill accom5 panying that special message. If the bill is not intro6 duced as provided in the preceding sentence, then, 

7 on the third legislative day of the House of Rep8 resentatives after the date of receipt of that special 

9 message, any Member of that House may introduce 

10 the bill. 

11 ‘‘(B) The bill shall be referred to the Com12 mittee on Appropriations. The committee shall re13 port the bill without substantive revision and with or 

14 without recommendation. The bill shall be reported

15 not later than the seventh legislative day of that 

16 House after the date of receipt of that special mes17 sage. If that committee fails to report the bill within 

18 that period, that committee shall be automatically 

19 discharged from consideration of the bill, and the 

20 bill shall be placed on the appropriate calendar. 

21 ‘‘(C) A vote on final passage of the bill shall be 

22 taken in the House of Representatives on or before 

23 the close of the 10th legislative day of that House 

24 after the date of the introduction of the bill in that 

25 House. If the bill is passed, the Clerk of the House 
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1 of Representatives shall cause the bill to be en2 grossed, certified, and transmitted to the Senate 

3 within one calendar day of the day on which the bill 

4 is passed. 

5 ‘‘(2)(A) A motion in the House of Representa6 tives to proceed to the consideration of a bill under 

7 this section shall be highly privileged and not debat8 able. An amendment to the motion shall not be in 

9 order, nor shall it be in order to move to reconsider 

10 the vote by which the motion is agreed to or dis11 agreed to. 

12 ‘‘(B) Debate in the House of Representatives 

13 on a bill under this section shall not exceed 4 hours, 

14 which shall be divided equally between those favoring 

15 and those opposing the bill. A motion to further 

16 limit debate shall not be debatable. It shall not be 

17 in order to move to recommit a bill under this sec18 tion or to move to reconsider the vote by which the 

19 bill is agreed to or disagreed to. 

20 ‘‘(C) Appeals from decisions of the Chair relat21 ing to the application of the Rules of the House of 

22 Representatives to the procedure relating to a bill 

23 under this section shall be decided without debate. 

24 ‘‘(D) Except to the extent specifically provided 

25 in the preceding provisions of this subsection, con-
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1 sideration of a bill under this section shall be gov2 erned by the Rules of the House of Representatives. 

3 It shall not be in order in the House of Representa4 tives to consider any rescission bill introduced pursu5 ant to the provisions of this section under a suspen6 sion of the rules or under a special rule.

7 ‘‘(3) A bill transmitted to the Senate pursuant 

8 to paragraph (1)(D) shall be referred to its Com9 mittee on Appropriations. That committee shall re10 port the bill without substantive revision and with or 

11 without recommendation. The bill shall be reported 

12 not later than the seventh legislative day of the Sen13 ate after it receives the bill. A committee failing to 

14 report the bill within such period shall be automati15 cally discharged from consideration of the bill, and 

16 the bill shall be placed upon the appropriate cal17 endar. 

18 ‘‘(4)(A) A motion in the Senate to proceed to 

19 the consideration of a bill under this section shall be 

20 privileged and not debatable. An amendment to the 

21 motion shall not be in order, nor shall it be in order 

22 to move to reconsider the vote by which the motion 

23 is agreed to or disagreed to. 

24 ‘‘(B) Debate in the Senate on a bill under this 

25 section, and all debatable motions and appeals in 
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1 connection therewith (including debate pursuant to 

2 subparagraph (C)), shall not exceed 10 hours. The 

3 time shall be equally divided between, and controlled 

4 by, the majority leader and the minority leader or 

5 their designees. 

6 ‘‘(C) Debate in the Senate or any debatable mo7 tion or appeal in connection with a bill under this 

8 section shall be limited to not more than 1 hour, to 

9 be equally divided between, and controlled by, the 

10 mover and the manager of the bill, except that in 

11 the event the manager of the bill is in favor of any 

12 such motion or appeal, the time in opposition there13 to, shall be controlled by the minority leader or his 

14 designee. Such leaders, or either of them, may, from 

15 time under their control of the passage of a bill, 

16 allot additional time to any Senator during the con17 sideration of any debatable motion or appeal. 

18 ‘‘(D) A motion in the Senate to further limit 

19 debate on a bill under this section is not debatable. 

20 A motion to recommit a bill under this section is not 

21 in order. 

22 ‘‘(d) AMENDMENT AND DIVISIONS PROHIBITED.—No 

23 amendment to a bill considered under this section shall 

24 be in order in either the House of Representatives or the 

25 Senate. It shall not be in order to demand a division of 
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1 the question in the House of Representatives (or in a Com2 mittee of the Whole) or in the Senate. No motion to sus3 pend the application of this subsection shall be in order 

4 in either House, nor shall it be in order in either House 

5 to suspend the application of this subsection by unanimous 

6 consent. 

7 ‘‘(e) REQUIREMENT TO MAKE AVAILABLE FOR OBLI8 GATION.—Any amount of budget authority proposed to be 

9 rescinded in a special message transmitted to Congress 

10 under subsection (b) shall be made available for obligation 

11 on the day after the date on which either House rejects 

12 the bill transmitted with that special message. 

13 ‘‘(f) DEFINITIONS.—For purposes of this section: 

14 ‘‘(1) The term ‘appropriation Act’ means any 

15 general or special appropriation Act, and any Act or 

16 joint resolution making supplemental, deficiency, or 

17 continuing appropriations. 

18 ‘‘(2) The term ‘legislative day’ means, with re19 spect to either House of Congress, any day of ses20 sion. 

21 ‘‘(3) The term ‘rescind’ means, with respect to 

22 an appropriation Act, to reduce the amount of budg23 et authority appropriated in that Act, and reducing 

24 budget authority shall include reducing obligation 

25 limitations set forth in that Act.’’. 
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1 (b) EXERCISE OF RULEMAKING POWERS.—Section 

2 904 of the Congressional Budget Act of 1974 (2 U.S.C. 

3 621 note) is amended—

4 (1) in subsection (a), by striking ‘‘and 1017’’ 

5 and inserting ‘‘1012, and 1017’’; and 

6 (2) in subsection (d), by striking ‘‘section 

7 1017’’ and inserting ‘‘sections 1012 and 1017’’. 

8 (c) CONFORMING AMENDMENTS.—

9 (1) Section 1011 of the Congressional Budget 

10 Act of 1974 (2 U.S.C. 682(5)) is amended by re11 pealing paragraphs (3) and (5) and by redesignating 

12 paragraph (4) as paragraph (3).

13 (2) Section 1014 of such Act (2 U.S.C. 685) is 

14 amended—

15 (A) in subsection (b)(1), by striking ‘‘or 

16 the reservation’’; and 

17 (B) in subsection (e)(1), by striking ‘‘or a 

18 reservation’’ and by striking ‘‘or each such res19 ervation’’. 

20 (3) Section 1015(a) of such Act (2 U.S.C. 686) 

21 is amended by striking ‘‘is to establish a reserve or’’, 

22 by striking ‘‘the establishment of such a reserve or’’, 

23 and by striking ‘‘reserve or’’ each other place it ap24 pears. 
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1 (4) Section 1017 of such Act (2 U.S.C. 687) is 

2 amended—

3 (A) in subsection (a), by striking ‘‘rescis4 sion bill introduced with respect to a special 

5 message or’’; 

6 (B) in subsection (b)(1), by striking ‘‘re7 scission bill or’’, by striking ‘‘bill or’’ the second 

8 place it appears, by striking ‘‘rescission bill with 

9 respect to the same special message or’’, and by 

10 striking ‘‘, and the case may be,’’; 

11 (C) in subsection (b)(2), by striking ‘‘bill 

12 or’’ each place it appears; 

13 (D) in subsection (c), by striking ‘‘rescis14 sion’’ each place it appears and by striking ‘‘bill 

15 or’’ each place it appears; 

16 (E) in subsection (d)(1), by striking ‘‘re17 scission bill or’’ and by striking ‘‘, and all 

18 amendments thereto (in the case of a rescission 

19 bill)’’; 

20 (F) in subsection (d)(2)—

21 (i) by striking the first sentence; 

22 (ii) by amending the second sentence 

23 to read as follows: ‘‘Debate on any debat24 able motion or appeal in connection with 

25 an impoundment resolution shall be limited 
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1 to 1 hour, to be equally divided between, 

2 and controlled by, the mover and the man3 ager of the resolution, except that in the 

4 event that the manager of the resolution is 

5 in favor of any such motion or appeal, the 

6 time in opposition thereto shall be con7 trolled by the minority leader or his des8 ignee.’’; 

9 (iii) by striking the third sentence; 

10 and 

11 (iv) in the fourth sentence, by striking 

12 ‘‘rescission bill or’’ and by striking 

13 ‘‘amendment, debatable motion,’’ and by 

14 inserting ‘debatable motion’; 

15 (G) in paragraph (d)(3), by striking the 

16 second and third sentences; and 

17 (H) by striking paragraphs (4), (5), (6), 

18 and (7) of paragraph (d). 

19 (d) CLERICAL AMENDMENTS.—The table of sections 

20 for subpart B of title X of the Congressional Budget and 

21 Impoundment Control Act of 1974 is amended by redesig22 nating the item relating to sections 1014 through 1018 

23 as items 1015 through 1019, respectively, and by inserting 

24 after the item relating to section 1012 the following new 

25 item:

‘‘Sec. 1013. Enhanced consideration of certain proposed rescissions.’’.
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1 Subtitle C—Commission to 

2 Eliminate Waste, Fraud, and Abuse 

3 SEC. 321. ESTABLISHMENT OF COMMISSION. 

4 (a) ESTABLISHMENT.—There is established the Com5 mission to Eliminate Waste, Fraud, and Abuse (hereafter 

6 in this subtitle referred to as the ‘‘Commission’’). 

7 (b) MEMBERSHIP.—

8 (1) IN GENERAL.—The Commission shall con9 sist of 12 members, all of whom shall be appointed 

10 by the President not later than 90 days after the 

11 date of enactment of this Act. 

12 (2) CHAIRPERSON AND VICE CHAIRPERSON.—

13 The President shall designate a chairperson and vice 

14 chairperson from among the members of the Com15 mission. 

16 (c) PERIOD OF APPOINTMENT; VACANCIES.—Mem17 bers shall be appointed for the life of the Commission. Any 

18 vacancy in the Commission shall not affect its powers, but 

19 shall be filled in the same manner as the original appoint20 ment. 

21 (d) MEETINGS.—

22 (1) INITIAL MEETING.—Not later than 30 days 

23 after the date on which all members of the Commis24 sion have been appointed, the Commission shall hold 

25 its first meeting. 
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1 (2) SUBSEQUENT MEETINGS.—The Commission 

2 shall meet at the call of the chairperson. 

3 (e) QUORUM.—A majority of the members of the 

4 Commission shall constitute a quorum, but a lesser num5 ber of members may hold hearings. 

6 SEC. 322. DUTIES OF THE COMMISSION. 

7 (a) DEFINITIONS.—In this section, the following defi8 nitions shall apply: 

9 (1) AGENCY.—The term ‘‘agency’’ has the 

10 meaning given the term ‘‘Executive agency’’ under 

11 section 105 of title 5, United States Code. 

12 (2) PROGRAM.—The term ‘‘program’’ means 

13 any activity or function of an agency. 

14 (b) IN GENERAL.—The Commission shall—

15 (1) evaluate all agencies and programs within 

16 those agencies, using the criteria under subsection 

17 (c); and 

18 (2) submit to Congress—

19 (A) a plan with recommendations of the 

20 agencies and programs that should be realigned 

21 or eliminated; and 

22 (B) proposed legislation to implement the 

23 plan described under subparagraph (A). 

24 (c) CRITERIA.—
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1 (1) DUPLICATIVE.—If 2 or more agencies or 

2 programs are performing the same essential function 

3 and the function can be consolidated or streamlined 

4 into a single agency or program, the Commission 

5 shall recommend that the agency or program be re6 aligned. 

7 (2) WASTEFUL OR INEFFICIENT.—The Com8 mission shall recommend the realignment or elimi9 nation of any agency or program that has wasted 

10 Federal funds by—

11 (A) egregious spending;

12 (B) mismanagement of resources and per13 sonnel; or 

14 (C) use of such funds for personal benefit 

15 or the benefit of a special interest group. 

16 (3) OUTDATED, IRRELEVANT, OR FAILED.—The 

17 Commission shall recommend the elimination of any 

18 agency or program that—

19 (A) has completed its intended purpose; 

20 (B) has become irrelevant; or 

21 (C) has failed to meet its objectives. 

22 (d) SYSTEMATIC ASSESSMENT OF PROGRAMS.—

23 (1) IN GENERAL.—Not later than 1 year after 

24 the date of enactment of this Act, the President 

25 shall—
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1 (A) establish a systematic method for as2 sessing the effectiveness and accountability of 

3 agency programs; and 

4 (B) submit, to the Commission, assessments of not less than 1 5 ⁄2 of all programs cov6 ered under subsection (b)(1) that use the meth7 od established under subparagraph (A). 

8 (2) METHOD OBJECTIVES.—The method estab9 lished under paragraph (1) shall—

10 (A) recognize different types of federal 

11 programs; 

12 (B) assess programs based primarily on 

13 the achievement of performance goals (as de14 fined under section 1115(f)(4) of title 31, 

15 United States Code); and 

16 (C) assess programs based in part on the 

17 adequacy of the program’s performance meas18 ures, financial management, and other factors 

19 determined by the President. 

20 (3) DEVELOPMENT.—The method established 

21 under paragraph (1) shall not be implemented until 

22 it has been reviewed and accepted by the Commis23 sion. 

24 (4) CONSIDERATION OF ASSESSMENTS.—The 

25 Commission shall consider assessments submitted 
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1 under this subsection when evaluating programs 

2 under subsection (b)(1). 

3 (e) COMMON PERFORMANCE MEASURES.—Not later 

4 than 1 year after the date of enactment of this Act, the 

5 President shall identify common performance measures 

6 for programs covered in subsection (b)(1) that have simi7 lar functions and, to the extent feasible, provide the Com8 mission with data on such performance measures. 

9 (f) REPORT.—

10 (1) IN GENERAL.—Not later than 2 years after 

11 the date of enactment of this Act, the Commission 

12 shall submit to the President and Congress a report 

13 that includes—

14 (A) the plan described under subsection 

15 (b)(2)(A), with supporting documentation for 

16 all recommendations; and 

17 (B) the proposed legislation described 

18 under subsection (b)(2)(B). 

19 (2) RELOCATION OF FEDERAL EMPLOYEES.—

20 The proposed legislation under paragraph (1)(B) 

21 shall provide that if the position of an employee of 

22 an agency is eliminated as a result of the implemen23 tation of the plan under paragraph (1)(A), the af24 fected agency shall make reasonable efforts to relo-
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1 cate such employee to another position within the 

2 agency or within another Federal agency. 

3 SEC. 323. POWERS OF THE COMMISSION. 

4 (a) HEARINGS.—The Commission or, at its direction, 

5 any subcommittee or member of the Commission, may, for 

6 the purpose of carrying out this subtitle—

7 (1) hold such hearings, sit and act at such 

8 times and places, take such testimony, receive such 

9 evidence, and administer such oaths as any member 

10 of the Commission considers advisable; 

11 (2) require, by subpoena or otherwise, the at12 tendance and testimony of such witnesses as any 

13 member of the Commission considers advisable; and 

14 (3) require, by subpoena or otherwise, the pro15 duction of such books, records, correspondence, 

16 memoranda, papers, documents, tapes, and other 

17 evidentiary materials relating to any matter under 

18 investigation by the Commission. 

19 (b) SUBPOENAS.—

20 (1) ISSUANCE.—Subpoenas issued under sub21 section (a) shall bear the signature of the chair22 person of the Commission and shall be served by any 

23 person or class of persons designated by the chair24 person for that purpose. 
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1 (2) ENFORCEMENT.—In the case of contumacy 

2 or failure to obey a subpoena issued under sub3 section (a), the United States district court for the 

4 judicial district in which the subpoenaed person re5 sides, is served, or may be found, may issue an order 

6 requiring such person to appear at any designated 

7 place to testify or to produce documentary or other 

8 evidence. Any failure to obey the order of the court 

9 may be punished by the court as a contempt of that 

10 court. 

11 (c) INFORMATION FROM FEDERAL AGENCIES.—The 

12 Commission may secure directly from any Federal depart13 ment or agency such information as the Commission con14 siders necessary to carry out this Act. Upon request of 

15 the chairperson of the Commission, the head of such de16 partment or agency shall furnish such information to the 

17 Commission. 

18 (d) POSTAL SERVICES.—The Commission may use 

19 the United States mails in the same manner and under 

20 the same conditions as other departments and agencies of 

21 the Government. 

22 (e) GIFTS.—The Commission may accept, use, and 

23 dispose of gifts or donations of services or property. 

24 SEC. 324. COMMISSION PERSONNEL MATTERS. 

25 (a) COMPENSATION OF MEMBERS.—
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1 (1) NON-FEDERAL MEMBERS.—Except as pro2 vided under subsection (b), each member of the 

3 Commission who is not an officer or employee of the 

4 Government shall not be compensated. 

5 (2) FEDERAL OFFICERS OR EMPLOYEES.—All 

6 members of the Commission who are officers or em7 ployees of the United States shall serve without com8 pensation in addition to that received for their serv9 ices as officers or employees of the United States.

10 (b) TRAVEL EXPENSES.—The members of the Com11 mission shall be allowed travel expenses, including per 

12 diem in lieu of subsistence, at rates authorized for employ13 ees of agencies under subchapter I of chapter 57 of title 

14 5, United States Code, while away from their homes or 

15 regular places of business in the performance of services 

16 for the Commission. 

17 (c) STAFF.—

18 (1) IN GENERAL.—The chairperson of the Com19 mission may, without regard to the civil service laws 

20 and regulations, appoint and terminate an executive 

21 director and such other additional personnel as may 

22 be necessary to enable the Commission to perform 

23 its duties. The employment of an executive director 

24 shall be subject to confirmation by the Commission. 
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1 (2) COMPENSATION.—Upon the approval of the 

2 chairperson, the executive director may fix the com3 pensation of the executive director and other per4 sonnel without regard to chapter 51 and subchapter 

5 III of chapter 53 of title 5, United States Code, re6 lating to classification of positions and General 

7 Schedule pay rates, except that the rate of pay for 

8 the executive director and other personnel may not 

9 exceed the maximum rate payable for a position at 

10 GS–15 of the General Schedule under section 5332 

11 of such title. 

12 (3) PERSONNEL AS FEDERAL EMPLOYEES.—

13 (A) IN GENERAL.—The executive director 

14 and any personnel of the Commission who are 

15 employees shall be employees under section 

16 2105 of title 5, United States Code, for pur17 poses of chapters 63, 81, 83, 84, 85, 87, 89, 

18 and 90 of that title. 

19 (B) MEMBERS OF COMMISSION.—Subpara20 graph (A) shall not be construed to apply to 

21 members of the Commission. 

22 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

23 Government employee may be detailed to the Commission 

24 without reimbursement, and such detail shall be without 

25 interruption or loss of civil service status or privilege. 
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1 (e) PROCUREMENT OF TEMPORARY AND INTERMIT2 TENT SERVICES.—The chairperson of the Commission 

3 may procure temporary and intermittent services under 

4 section 3109(b) of title 5, United States Code, at rates 

5 for individuals which do not exceed the daily equivalent 

6 of the annual rate of basic pay prescribed for level V of 

7 the Executive Schedule under section 5316 of such title. 

8 SEC. 325. TERMINATION OF THE COMMISSION. 

9 The Commission shall terminate 90 days after the 

10 date on which the Commission submits the report under 

11 section 232(f). 

12 SEC. 326. CONGRESSIONAL CONSIDERATION OF REFORM 

13 PROPOSALS. 

14 (a) DEFINITIONS.—In this section: 

15 (1) IMPLEMENTATION BILL.—The term ‘‘imple16 mentation bill’’ means only a bill which is introduced 

17 as provided under subsection (b), and contains the 

18 proposed legislation included in the report submitted 

19 to Congress under section 232, without modification. 

20 (2) CALENDAR DAY.—The term ‘‘calendar day’’ 

21 means a calendar day other than 1 on which either 

22 House is not in session because of an adjournment 

23 of more than 3 days to a date certain. 

24 (b) INTRODUCTION; REFERRAL; AND REPORT OR

25 DISCHARGE.—
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1 (1) INTRODUCTION.—On the first calendar day 

2 on which both Houses are in session, on or imme3 diately following the date on which the report is sub4 mitted to Congress under section 232, a single im5 plementation bill shall be introduced (by request)—

6 (A) in the Senate by the Majority Leader 

7 of the Senate, for himself and the Minority 

8 Leader of the Senate, or by Members of the 

9 Senate designated by the Majority Leader and 

10 Minority Leader of the Senate; and 

11 (B) in the House of Representatives by the 

12 Speaker of the House of Representatives, for 

13 himself and the Minority Leader of the House 

14 of Representatives, or by Members of the House 

15 of Representatives designated by the Speaker 

16 and Minority Leader of the House of Rep17 resentatives. 

18 (2) REFERRAL.—The implementation bills in19 troduced under paragraph (1) shall be referred to 

20 any appropriate committee of jurisdiction in the 

21 Senate and any appropriate committee of jurisdic22 tion in the House of Representatives. A committee 

23 to which an implementation bill is referred under 

24 this paragraph may report such bill to the respective 

25 House without amendment. 
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1 (3) REPORT OR DISCHARGE.—If a committee to 

2 which an implementation bill is referred has not re3 ported such bill by the end of the 15th calendar day 

4 after the date of the introduction of such bill, such 

5 committee shall be immediately discharged from fur6 ther consideration of such bill, and upon being re7 ported or discharged from the committee, such bill 

8 shall be placed on the appropriate calendar. 

9 (c) FLOOR CONSIDERATION.—

10 (1) IN GENERAL.—When the committee to 

11 which an implementation bill is referred has re12 ported, or has been discharged under subsection 

13 (b)(3), it is at any time thereafter in order (even 

14 though a previous motion to the same effect has 

15 been disagreed to) for any Member of the respective 

16 House to move to proceed to the consideration of the 

17 implementation bill, and all points of order against 

18 the implementation bill (and against consideration of 

19 the implementation bill) are waived. The motion is 

20 highly privileged in the House of Representatives 

21 and is privileged in the Senate and is not debatable. 

22 The motion is not subject to amendment, or to a 

23 motion to postpone, or to a motion to proceed to the 

24 consideration of other business. A motion to recon25 sider the vote by which the motion is agreed to or 
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1 disagreed to shall not be in order. If a motion to 

2 proceed to the consideration of the implementation 

3 bill is agreed to, the implementation bill shall remain 

4 the unfinished business of the respective House until 

5 disposed of. 

6 (2) AMENDMENTS.—An implementation bill 

7 may not be amended in the Senate or the House of 

8 Representatives.

9 (3) DEBATE.—Debate on the implementation 

10 bill, and on all debatable motions and appeals in 

11 connection therewith, shall be limited to not more 

12 than 10 hours, which shall be divided equally be13 tween those favoring and those opposing the resolu14 tion. A motion further to limit debate is in order and 

15 not debatable. An amendment to, or a motion to 

16 postpone, or a motion to proceed to the consider17 ation of other business, or a motion to recommit the 

18 implementation bill is not in order. A motion to re19 consider the vote by which the implementation bill is 

20 agreed to or disagreed to is not in order. 

21 (4) VOTE ON FINAL PASSAGE.—Immediately 

22 following the conclusion of the debate on an imple23 mentation bill, and a single quorum call at the con24 clusion of the debate if requested in accordance with 
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1 the rules of the appropriate House, the vote on final 

2 passage of the implementation bill shall occur. 

3 (5) RULINGS OF THE CHAIR ON PROCEDURE.—

4 Appeals from the decisions of the Chair relating to 

5 the application of the rules of the Senate or the 

6 House of Representatives, as the case may be, to the 

7 procedure relating to an implementation bill shall be 

8 decided without debate. 

9 (d) COORDINATION WITH ACTION BY OTHER

10 HOUSE.—If, before the passage by 1 House of an imple11 mentation bill of that House, that House receives from 

12 the other House an implementation bill, then the following 

13 procedures shall apply: 

14 (1) NONREFERRAL.—The implementation bill 

15 of the other House shall not be referred to a com16 mittee. 

17 (2) VOTE ON BILL OF OTHER HOUSE.—With 

18 respect to an implementation bill of the House re19 ceiving the implementation bill—

20 (A) the procedure in that House shall be 

21 the same as if no implementation bill had been 

22 received from the other House; but 

23 (B) the vote on final passage shall be on 

24 the implementation bill of the other House. 
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1 (e) RULES OF SENATE AND HOUSE OF REPRESENTA2 TIVES.—This section is enacted by Congress—

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

4 the Senate and House of Representatives, respec5 tively, and as such it is deemed a part of the rules 

6 of each House, respectively, but applicable only with 

7 respect to the procedure to be followed in that 

8 House in the case of an implementation bill de9 scribed in subsection (a), and it supersedes other 

10 rules only to the extent that it is inconsistent with 

11 such rules; and 

12 (2) with full recognition of the constitutional 

13 right of either House to change the rules (so far as 

14 relating to the procedure of that House) at any time, 

15 in the same manner, and to the same extent as in 

16 the case of any other rule of that House. 

17 SEC. 327. AUTHORIZATION OF APPROPRIATIONS. 

18 There are authorized to be appropriated such sums 

19 as may be necessary for carrying out this subtitle for each 

20 of the fiscal years 2006 through 2008.
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1 TITLE IV—TRUTH IN 

2 ACCOUNTING 

3 Subtitle A—Accrual Funding of 

4 Pensions and Retirement Pay 

5 for Federal Employees and Uni6 formed Services Personnel 

7 SEC. 401. CIVIL SERVICE RETIREMENT SYSTEM. 

8 (a) CIVIL SERVICE RETIREMENT AND DISABILITY

9 FUND.—Chapter 83 of title 5, United States Code, is 

10 amended—

11 (1) in section 8331—

12 (A) in paragraph (17)—

13 (i) by striking ‘‘normal cost’’ and in14 serting ‘‘normal cost percentage’’; and 

15 (ii) by inserting ‘‘and standards 

16 (using dynamic assumptions)’’ after ‘‘prac17 tice’’; 

18 (B) by amending paragraph (18) to read 

19 as follows: 

20 ‘‘(18) ‘Fund balance’ means the current net as21 sets of the Fund available for payment of benefits, 

22 as determined by the Office in accordance with ap23 propriate accounting standards, but does not include 

24 any amount attributable to—
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1 ‘‘(A) the Federal Employees’ Retirement 

2 System; or 

3 ‘‘(B) contributions made under the Federal 

4 Employees’ Retirement Contribution Temporary 

5 Adjustment Act of 1983 by or on behalf of any 

6 individual who became subject to the Federal 

7 Employees’ Retirement System;’’

8 (C) by amending paragraph (19) to read 

9 as follows: 

10 ‘‘(19) ‘accrued liability’ means the estimated ex11 cess of the present value of all benefits payable from 

12 the Fund to employees and Members, and former 

13 employees and Members, subject to this subchapter, 

14 and their survivors, over the present value of deduc15 tions to be withheld from the future basic pay of em16 ployees and Members currently subject to this sub17 chapter and of future agency contributions to be 

18 made in their behalf;’’

19 (D) in paragraph (27) by striking ‘‘and’’ 

20 at the end; 

21 (E) in paragraph (28) by striking the pe22 riod at the end and inserting a semicolon; and 

23 (F) by adding at the end the following 

24 paragraphs: 
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1 ‘‘(29) ‘dynamic assumptions’ means economic 

2 assumptions that are used in determining actuarial 

3 costs and liabilities of a retirement system and in 

4 anticipating the effects of long-term future—

5 ‘‘(A) investment yields; 

6 ‘‘(B) increases in rates of basic pay; and 

7 ‘‘(C) rates of price inflation; and 

8 ‘‘(30) ‘unfunded liability’ means the estimated 

9 excess of—

10 ‘‘(A) the actuarial present value of all fu11 ture benefits payable from the Fund under this 

12 subchapter based on the service of current or 

13 former employees or Members, over 

14 ‘‘(B) the sum of—

15 ‘‘(i) the actuarial present value of de16 ductions to be withheld from the future

17 basic pay of employees and Members cur18 rently subject to this chapter pursuant to 

19 section 8334; 

20 ‘‘(ii) the actuarial present value of the 

21 future contributions to be made pursuant 

22 to section 8334 with respect to employees 

23 and Members currently subject to this sub24 chapter; 
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1 ‘‘(iii) the Fund balance, as defined in 

2 paragraph (18), as of the date the un3 funded liability is determined; and 

4 ‘‘(iv) any other appropriate amount, 

5 as determined by the Office of Personnel 

6 Management in accordance with generally 

7 accepted actuarial practices and prin8 ciples.’’; 

9 (2) in section 8334—

10 (A) in subsection (a)(1)—

11 (i) by striking the last two sentences; 

12 (ii) by redesignating that subsection, 

13 as so amended, as (a)(1)(A); and 

14 (iii) by adding at the end the fol15 lowing new subparagraphs: 

16 ‘‘(B) Except as provided in subparagraph (E), each 

17 employing agency having any employees or Members sub18 ject to subparagraph (A) shall contribute from amounts 

19 available for salaries and expenses an amount equal to the 

20 sum of—

21 ‘‘(i) the product of—

22 ‘‘(I) the normal cost percentage, as deter23 mined for employees (other than employees cov24 ered by clause (ii)), multiplied by 
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1 ‘‘(II) the aggregate amount of basic pay 

2 payable by the agency, for the period involved, 

3 to employees (under subclause (I)) who are 

4 within such agency; and 

5 ‘‘(ii) the product of—

6 ‘‘(I) the normal cost percentage, as deter7 mined for Members, Congressional employees, 

8 law enforcement officers, firefighters, air traffic 

9 controllers, bankruptcy judges, Court of Fed10 eral Claims judges, United States magistrates, 

11 judges of the United States Court of Appeals 

12 for the Armed Forces, members of the Capitol 

13 Police, nuclear materials couriers, and members 

14 of the Supreme Court Police, multiplied by 

15 ‘‘(II) the aggregate amount of basic pay 

16 payable by the agency for the period involved, 

17 to employees and Members (under subclause 

18 (I)) who are within such agency. 

19 ‘‘(C) In determining the normal cost percentage to 

20 be applied under subparagraph (B), amounts provided for 

21 under subparagraph (A) shall be taken into account. 

22 ‘‘(D) Contributions under this paragraph shall be 

23 paid—

24 ‘‘(i) in the case of law enforcement officers, 

25 firefighters, air traffic controllers, bankruptcy 
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1 judges, Court of Federal Claims judges, United 

2 States magistrates, judges of the United States 

3 Court of Appeals for the Armed Forces, members of 

4 the Supreme Court Police, nuclear materials couriers 

5 and other employees, from the appropriations or 

6 fund used to pay such law enforcement officers, fire7 fighters, air traffic controllers, bankruptcy judges, 

8 Court of Federal Claims judges, United States mag9 istrates, judges of the United States Court of Ap10 peals for the Armed Forces, members of the Su11 preme Court Police, nuclear materials couriers and 

12 other employees, respectively; 

13 ‘‘(ii) in the case of elected officials, from an ap14 propriation or fund available for payment of other 

15 salaries of the same office or establishment; and 

16 ‘‘(iii) in the case of employees of the legislative 

17 branch paid by the Clerk of the House of Represent18 atives, from the contingent fund of the House. 

19 ‘‘(E) In the case of the United States Postal Service, 

20 the Metropolitan Washington Airports Authority, and the 

21 government of the District of Columbia, an amount equal 

22 to that withheld under subparagraph (A) shall be contrib23 uted from the appropriation or fund used to pay the em24 ployee.’’; and 

25 (B) in subsection (k)—
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1 (i) in paragraph (1)—

2 (I) in subparagraph (A) by strik3 ing ‘‘the first sentence of subsection 

4 (a)(1) of this section’’ and inserting 

5 ‘‘subsection (a)(1)(A)’’; and 

6 (II) by amending subparagraph 

7 (B) to read as follows: 

8 ‘‘(B) the amount of the contribution under sub9 section (a)(1)(B) shall be the amount which would 

10 have been contributed under such subsection if this 

11 subsection had not been enacted.’’; and 

12 (ii) in paragraph (2)(C)(iii) by strik13 ing ‘‘the first sentence of subsection 

14 (a)(1)’’ and inserting ‘‘subsection 

15 (a)(1)(A)’’; and

16 (3) in section 8348—

17 (A) by repealing subsection (f); 

18 (B) by amending subsection (g) to read as 

19 follows: 

20 ‘‘(g)(1)(A) Not later than June 30, 2005, the Office 

21 of the Actuary shall determine the unfunded liability of 

22 the Fund, as of September 30, 2004, attributable to bene23 fits payable under this chapter and make recommenda24 tions regarding its liquidation. After considering such rec25 ommendations, the Office shall establish an amortization 
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1 schedule, including a series of annual installments com2 mencing October 1, 2005, which provides for the liquida3 tion of such liability by October 1, 2044. 

4 ‘‘(B) The Office shall redetermine the unfunded li5 ability of the Fund as of the close of the fiscal year, for 

6 each fiscal year beginning after September 30, 2004, 

7 through the fiscal year ending September 30, 2039, and 

8 shall establish a new amortization schedule, including a 

9 series of annual installments commencing on October 1 

10 of the second subsequent fiscal year, which provides for 

11 the liquidation of such liability by October 1, 2044. 

12 ‘‘(C) The Office shall redetermine the unfunded li13 ability of the Fund as of the close of the fiscal year for 

14 each fiscal year beginning after September 30, 2039, and 

15 shall establish a new amortization schedule, including a 

16 series of annual installments commencing on October 1

17 of the second subsequent fiscal year, which provides for 

18 the liquidation of such liability over five years. 

19 ‘‘(D) Amortization schedules established under this 

20 paragraph shall be set in accordance with generally accept21 ed actuarial practices and principles, with interest com22 puted at the rate used in the most recent valuation of the 

23 Civil Service Retirement System. 

24 ‘‘(2) At the beginning of each fiscal year, beginning 

25 on October 1, 2005, the Office shall notify the Secretary 
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1 of the Treasury of the amount of the first installment 

2 under the most recent amortization schedule established 

3 under paragraph (1). The Secretary shall credit that 

4 amount to the Fund, as a Government contribution, out 

5 of any money in the Treasury of the United States not 

6 otherwise appropriated. 

7 ‘‘(3) For the purpose of carrying out paragraph (1) 

8 with respect to any fiscal year, the Office may—

9 ‘‘(A) require the Board of Actuaries of the Civil 

10 Service Retirement System to make actuarial deter11 minations and valuations, make recommendations, 

12 and maintain records in accordance with section 

13 8347(f); and 

14 ‘‘(B) use the latest actuarial determinations 

15 and valuations made by such Board of Actuaries.’’; 

16 (C) in subsections (h), (i), and (m) by 

17 striking ‘‘unfunded’’ and inserting ‘‘accrued’’ 

18 each place it appears; and 

19 (D) by adding at the end the following new 

20 subsection: 

21 ‘‘(n) Under regulations prescribed by the Office, the 

22 head of an agency may request reconsideration of any 

23 amount determined to be payable with respect to such 

24 agency under section 8334(a)(1)(B)–(D). Any such re25 quest shall be referred to the Board of Actuaries of the 
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1 Civil Service Retirement System. The Board of Actuaries 

2 shall review the computations of the Office and may make 

3 any adjustment with respect to any such amount which 

4 the Board determines appropriate. A determination by the 

5 Board of Actuaries under this subsection shall be final.’’. 

6 (b) GOVERNMENT CONTRIBUTIONS.—Section 8423 

7 of title 5, United States Code, is amended—

8 (1) in subsection (a)(2) by striking ‘‘section 

9 8422’’ and inserting ‘‘section 8422(a)’’; and 

10 (2) in subsection (b)(2) by striking ‘‘equal an11 nual installments’’ and inserting ‘‘annual install12 ments set in accordance with generally accepted ac13 tuarial practices and principles’’. 

14 SEC. 402. CENTRAL INTELLIGENCE AGENCY RETIREMENT 

15 AND DISABILITY SYSTEM. 

16 (a) Section 101 of the Central Intelligence Agency 

17 Retirement Act (50 U.S.C. 2001) is amended—

18 (1) in paragraph (5), to read as follows: 

19 ‘‘(5) UNFUNDED LIABILITY.—The term ‘un20 funded liability’ means the estimated excess of—

21 ‘‘(A) the actuarial present value of all fu22 ture benefits payable from the Fund under title 

23 II of this Act based on the service of current 

24 or former participants, over 

25 ‘‘(B) the sum of—
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1 ‘‘(i) the actuarial present value of de2 ductions to be withheld from the future 

3 basic pay of participants currently subject 

4 to title II of this Act pursuant to section 

5 211; 

6 ‘‘(ii) the actuarial present value of the 

7 future contributions to be made pursuant 

8 to section 211 with respect to participants 

9 currently subject to title II of this Act; 

10 ‘‘(iii) the Fund balance, as defined in 

11 paragraph (4), as of the date the unfunded 

12 liability is determined; and 

13 ‘‘(iv) any other appropriate amount, 

14 as determined by the Director in accord15 ance with generally accepted actuarial 

16 practices and principles.’’; 

17 (2) in paragraph (6)—

18 (A) by striking ‘‘¥‘normal cost’¥’’ and 

19 inserting ‘‘¥‘normal cost percentage’¥’’; and 

20 (B) by inserting ‘‘and standards (using dy21 namic assumptions)’’ after ‘‘practice’’; and 

22 (3) by adding at the end the following para23 graph: 

24 ‘‘(10) DYNAMIC ASSUMPTIONS.—The term ‘dy25 namic assumptions’ means economic assumptions 
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1 that are used in determining actuarial costs and li2 abilities of a retirement system and in anticipating 

3 the effects of long-term future—

4 ‘‘(A) investment yields; 

5 ‘‘(B) increases in rates of basic pay; and 

6 ‘‘(C) rates of price inflation.’’; 

7 (b) Section 202 of such Act (50 U.S.C. 2012) is 

8 amended by adding at the end the following: ‘‘The Fund 

9 is appropriated for the payment of benefits as provided 

10 by this title.’’. 

11 (c) Section 211(a)(2) of such Act (50 U.S.C. 

12 2021(a)(2)) is amended to read as follows: 

13 ‘‘(2) AGENCY CONTRIBUTIONS.—The Agency 

14 shall contribute to the Fund the amount computed 

15 in a manner similar to that used under section 

16 8334(a) of title 5, United States Code, pursuant to 

17 determinations of the normal cost percentage of the 

18 Central Intelligence Agency Retirement and Dis19 ability System by the Director. Contributions under 

20 this paragraph shall be paid from amounts available 

21 for salaries and expenses.’’; and 

22 (d) Section 261 of such Act (50 U.S.C. 2091) is 

23 amended—

24 (1) by striking subsections (c), (d), and (e); and 
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1 (2) by inserting after subsection (b) the fol2 lowing new subsections: 

3 ‘‘(c)(1) Not later than June 30, 2005, the Director 

4 shall cause to be made actuarial valuations of the Fund 

5 that determine the unfunded liability of the Fund, as of 

6 September 30, 2004, attributable to benefits payable 

7 under this title and make recommendations regarding its 

8 liquidation. After considering such recommendations, the 

9 Director shall establish an amortization schedule, includ10 ing a series of annual installments commencing October 

11 1, 2005, which provides for the liquidation of such liability 

12 by October 1, 2044. 

13 ‘‘(2) The Director shall redetermine the unfunded li14 ability of the Fund as of the close of the fiscal year, for 

15 each fiscal year beginning after September 30, 2004,

16 through the fiscal year ending September 30, 2039, and 

17 shall establish a new amortization schedule, including a 

18 series of annual installments commencing on October 1 

19 of the second subsequent fiscal year, which provides for 

20 the liquidation of such liability by October 1, 2044. 

21 ‘‘(3) The Director shall redetermine the unfunded li22 ability of the Fund as of the close of the fiscal year for 

23 each fiscal year beginning after September 30, 2039, and 

24 shall establish a new amortization schedule, including a 

25 series of annual installments commencing on October 1 
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1 of the second subsequent fiscal year, which provides for 

2 the liquidation of such liability over five years. 

3 ‘‘(4) Amortization schedules established under this 

4 subsection shall be set in accordance with generally accept5 ed actuarial practices and principles, with interest com6 puted at the rate used in the most recent valuation of the 

7 Civil Service Retirement and Disability System. 

8 ‘‘(d) At the beginning of each fiscal year, beginning 

9 on October 1, 2005, the Director shall notify the Secretary 

10 of the Treasury of the amount of the first installment 

11 under the most recent amortization schedule established 

12 under subsection (c). The Secretary shall credit that 

13 amount to the Fund, as a Government contribution, out 

14 of any money in the Treasury of the United States not 

15 otherwise appropriated. For the purposes of Section 504 

16 of the National Security Act of 1947, this amount shall 

17 be considered authorized.’’. 

18 (e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) 

19 is amended by adding at the end the following new section: 

20 ‘‘SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EM21 PLOYEES DESIGNATED UNDER SECTION 302. 

22 ‘‘(a) In addition to other government contributions 

23 required by law, the Agency shall contribute to the Civil 

24 Service Retirement and Disability fund (hereinafter in this 

25 section referred to as the ‘Fund’) amounts calculated in 
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1 accordance with section 8423 of title 5, United States 

2 Code, based on the projected number of employees to be 

3 designated pursuant to section 302 of this Act. In addi4 tion, the Agency, in a manner similar to that established 

5 for employee contributions to the Fund by section 8422 

6 of title 5, United States Code, will contribute an amount 

7 equal to the difference between that which would be con8 tributed by the number of employees projected to be des9 ignated under section 302 and the amounts that are actu10 ally being deducted and contributed from the basic pay 

11 of an equal number of employees pursuant to section 

12 8422. The amounts of the Agency’s contributions under 

13 this subsection shall be determined by the Director of the 

14 Office of Personnel Management, in consultation with the 

15 Director, and shall be paid by the Agency from funds 

16 available for salaries and expenses. Agency employees des17 ignated pursuant to section 302 of this Act shall, com18 mencing with such designation, have deducted from their 

19 basic pay the full amount required by section 8422 of title 

20 5, United States Code, and such deductions shall be con21 tributed to the Fund. 

22 ‘‘(b)(1) The Director of the Office of Personnel Man23 agement, in consultation with the Director, shall deter24 mine the total amount of unpaid contributions (govern25 ment and employee contributions) and interest attrib-
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1 utable to the number of individuals employed with the 

2 Agency on September 30, 2005, who are projected to be 

3 designated under section 302 of this Act, but are not yet 

4 designated under that section as of that date. The amount 

5 shall be referred to as the section 302 unfunded liability. 

6 ‘‘(2) Not later than June 30, 2006, the Director of 

7 the Office of Personnel Management, in consultation with 

8 the Director, shall establish an amortization schedule, set9 ting forth a series of annual installments commencing 

10 September 30, 2006, which provides for the liquidation of 

11 the section 302 unfunded liability by September 30, 2013. 

12 ‘‘(3) At the end of each fiscal year, beginning on Sep13 tember 30, 2006, the Director shall notify the Secretary 

14 of the Treasury of the amount of the annual installment 

15 under the amortization schedule established under para16 graph (2) of this subsection. Before closing the accounts 

17 for that fiscal year, the Secretary shall credit that amount 

18 to the Fund, out of any money in the Treasury of the 

19 United States not otherwise appropriated. 

20 ‘‘(c) Amounts paid by the Agency pursuant to this 

21 section are deemed to be specifically authorized by the 

22 Congress for the purposes of section 504 of the National 

23 Security Act of 1947.’’. 
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1 (2) The table of contents of such Act is amended by 

2 inserting after the item relating to section 307 the fol3 lowing new item:

‘‘Sec. 308. Full funding of retiree costs for employees designated under section 

302.’’.

4 SEC. 403. FOREIGN SERVICE RETIREMENT AND DISABILITY 

5 SYSTEM. 

6 (a) Chapter 8 of Title I of the Foreign Service Act 

7 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

8 94 Stat. 2071, as amended, is further amended in section 

9 804 (22 U.S.C. 4044)—

10 (1) by amending paragraph (5) to read as fol11 lows: 

12 ‘‘(5) ‘normal cost percentage’ means the entry13 age normal cost computed in accordance with gen14 erally accepted actuarial practice and standards 

15 (using dynamic assumptions) and expressed as a 

16 level percentage of aggregate basic pay;’’;

17 (2) by amending paragraph (14) to read as fol18 lows: 

19 ‘‘(14) ‘unfunded liability’ means the estimated 

20 excess of—

21 ‘‘(A) the actuarial present value of all fu22 ture benefits payable from the Fund under this 

23 part based on the service of current or former 

24 participants, over 
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1 ‘‘(B) the sum of—

2 ‘‘(i) the actuarial present value of de3 ductions to be withheld from the future 

4 basic pay of participants currently subject 

5 to this part pursuant to section 805; 

6 ‘‘(ii) the actuarial present value of the 

7 future contributions to be made pursuant 

8 to section 805 with respect to participants 

9 currently subject to this part; 

10 ‘‘(iii) the Fund balance, as defined in 

11 paragraph (7), as of the date the unfunded 

12 liability is determined, excluding any 

13 amount attributable to the Foreign Service 

14 Pension System, or contributions made 

15 under the Federal Employees’ Retirement 

16 Contribution Temporary Adjustment Act 

17 of 1983 by or on behalf of any individual

18 who became subject to the Foreign Service 

19 Pension System; and 

20 ‘‘(iv) any other appropriate amount, 

21 as determined by the Secretary of the 

22 Treasury in accordance with generally ac23 cepted actuarial practices and principles.’’; 

24 and 
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1 (3)(A) by striking the period at the end of 

2 paragraph (15) and inserting ‘‘; and’’; and 

3 (B) by adding at the end the following new 

4 paragraph: 

5 ‘‘(16) ‘dynamic assumptions’ means economic 

6 assumptions that are used in determining actuarial 

7 costs and liabilities of a retirement system and in 

8 anticipating the effects of long-term future—

9 ‘‘(A) investment yields; 

10 ‘‘(B) increases in rates of basic pay; and 

11 ‘‘(C) rates of price inflation.’’; 

12 (b) in section 852 (22 U.S.C. 4071a)—

13 (1) in paragraph (4)—

14 (A) by striking ‘‘normal cost’’ and insert15 ing ‘‘normal cost percentage’’; and 

16 (B) by striking ‘‘by the Secretary of 

17 State’’; 

18 (2) in paragraph (7)—

19 (A) by striking ‘‘supplemental’’ and insert20 ing ‘‘unfunded’’; 

21 (B) in subparagraph (B)(i) by striking 

22 ‘‘(I)’’ and ‘‘and (II) contributions for past civil23 ian and military service’’; and 
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1 (C) in subparagraph (B)(ii) by inserting 

2 before the semicolon ‘‘with respect to partici3 pants currently subject to this part’’; and 

4 (3)(A) at the end of paragraph (8) by striking 

5 ‘‘and’’; 

6 (B) at the end of paragraph (9) by striking the 

7 period and inserting ‘‘; and’’; and 

8 (C) by adding at the end the following new 

9 paragraph: 

10 ‘‘(10) ‘dynamic assumptions’ means economic 

11 assumptions that are used in determining actuarial 

12 costs and liabilities of a retirement system and in 

13 anticipating the effects of long-term future—

14 ‘‘(A) investment yields;

15 ‘‘(B) increases in rates of basic pay; and 

16 ‘‘(C) rates of price inflation.’’; 

17 (c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))—

18 (1) by striking the second sentence; 

19 (2) by redesignating that subsection, as so 

20 amended, as (a)(1)(A); 

21 (3) by redesignating the last sentence of that 

22 subsection, as so amended as (a)(1)(C); 

23 (4) by inserting after subparagraph (A) the fol24 lowing new subparagraph: 
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1 ‘‘(B) Each employing agency having par2 ticipants shall contribute to the Fund the 

3 amount computed in a manner similar to that 

4 used under section 8334(a) of title 5, United 

5 States Code, pursuant to determinations of the 

6 normal cost percentage of the Foreign Service 

7 Retirement and Disability System. Contribu8 tions under this subparagraph shall be paid 

9 from the appropriations or fund used for pay10 ment of the salary of the participant.’’; 

11 (5) in subsection (a)(2)(A) by striking ‘‘An 

12 equal amount shall be contributed by the Depart13 ment’’ and inserting in its place ‘‘Each employing 

14 agency having participants shall contribute to the 

15 Fund the amount computed in a manner similar to 

16 that used under section 8334(a) of title 5, United 

17 States Code, pursuant to determinations of the nor18 mal cost percentage of the Foreign Service Retire19 ment and Disability System’’; and 

20 (6) in subsection (a)(2)(B) by striking ‘‘An 

21 equal amount shall be contributed by the Depart22 ment’’ and inserting in its place ‘‘Each employing 

23 agency having participants shall contribute to the 

24 Fund from amounts available for salaries and ex25 penses the amount computed in a manner similar to 
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1 that used under section 8334(a) of title 5, United 

2 States Code, pursuant to determinations of the nor3 mal cost percentage of the Foreign Service Retire4 ment and Disability System’’; 

5 (d) by repealing sections 821 and 822 (22 U.S.C. 

6 4061 and 4062) and by adding the following new section: 

7 ‘‘SEC. 821. UNFUNDED LIABILITY.—(a)(1) Not later 

8 than June 30, 2005, the Secretary of State shall cause 

9 to be made actuarial valuations of the Fund that deter10 mine the unfunded liability of the Fund, as of September 

11 30, 2004, attributable to benefits payable under this sub12 chapter and make recommendations regarding its liquida13 tion. After considering such recommendations, the Sec14 retary of State shall establish an amortization schedule, 

15 including a series of annual installments commencing Oc16 tober 1, 2004, which provides for the liquidation of such 

17 liability by October 1, 2044. 

18 ‘‘(2) The Secretary of State shall redetermine the un19 funded liability of the Fund as of the close of the fiscal 

20 year, for each fiscal year beginning after September 30, 

21 2004, through the fiscal year ending September 30, 2039, 

22 and shall establish a new amortization schedule, including 

23 a series of annual installments commencing on October 1 

24 of the second subsequent fiscal year, which provides for 

25 the liquidation of such liability by October 1, 2044. 
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1 ‘‘(3) The Secretary of State shall redetermine the un2 funded liability of the Fund as of the close of the fiscal 

3 year for each fiscal year beginning after September 30, 

4 2039, and shall establish a new amortization schedule, in5 cluding a series of annual installments commencing on Oc6 tober 1 of the second subsequent fiscal year, which pro7 vides for the liquidation of such liability over five years. 

8 ‘‘(4) Amortization schedules established under this 

9 subsection shall be set in accordance with generally accept10 ed actuarial practices and principles, with interest com11 puted at the rate used in the most recent valuation of the 

12 Foreign Service Retirement and Disability System. 

13 ‘‘(b) At the beginning of each fiscal year, beginning 

14 on October 1, 2005, the Secretary of State shall notify 

15 the Secretary of the Treasury of the amount of the first 

16 installment under the most recent amortization schedule 

17 established under paragraph (1). The Secretary of the 

18 Treasury shall credit that amount to the Fund, as a Gov19 ernment contribution, out of any money in the Treasury 

20 of the United States not otherwise appropriated.’’;

21 (e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by 

22 striking ‘‘equal annual installments’’ and inserting ‘‘an23 nual installments set in accordance with generally accept24 ed actuarial practices and principles’’; 
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1 (f) in section 859 (22 U.S.C. 4071h) by adding ‘‘per2 centage’’ after ‘‘normal cost’’; 

3 (g) in section 802 (22 U.S.C. 4042) by adding at the 

4 end the following: ‘‘The Fund is appropriated for the pay5 ment of benefits as provided by this subchapter.’’; and 

6 (h) in section 818 (22 U.S.C. 4058) by striking ‘‘Sys7 tem’’ and inserting ‘‘Systems under this subchapter’’. 

8 SEC. 404. PUBLIC HEALTH SERVICE COMMISSIONED CORPS 

9 RETIREMENT SYSTEM. 

10 (a) IN GENERAL.—Title II of the Public Health Serv11 ice Act (42 U.S.C. 202 et seq.) is amended by adding at 

12 the end the following new part: 

13 ‘‘PART C—PUBLIC HEALTH SERVICE 

14 COMMISSIONED CORPS RETIREMENT SYSTEM 

15 ‘‘ESTABLISHMENT AND PURPOSE OF FUND

16 ‘‘SEC. 251. There is established on the books of the 

17 Treasury a fund to be known as the Public Health Service 

18 Commissioned Corps Retirement Fund (hereinafter in this 

19 part referred to as the ‘Fund’), which shall be adminis20 tered by the Secretary. The Fund shall be used for the 

21 accumulation of funds in order to finance on an actuarially 

22 sound basis liabilities of the Department of Health and 

23 Human Services for benefits payable on account of retire24 ment, disability, or death to commissioned officers of the 
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1 Public Health Service and to their survivors pursuant to 

2 part A of this title. 

3 ‘‘ASSETS OF THE FUND

4 ‘‘SEC. 252. There shall be deposited into the Fund 

5 the following, which shall constitute the assets of the 

6 Fund: 

7 ‘‘(1) Amounts paid into the Fund under section 

8 255. 

9 ‘‘(2) Any return on investment of the assets of 

10 the Fund. 

11 ‘‘(3) Amounts transferred into the Fund pursu12 ant to section 404(c) of the Family Budget Protec13 tion Act of 2004.

14 ‘‘PAYMENT FROM THE FUND

15 ‘‘SEC. 253. There shall be paid from the Fund bene16 fits payable on account of retirement, disability, or death 

17 to commissioned officers of the Public Health Service and 

18 to their survivors pursuant to part A of this title. 

19 ‘‘DETERMINATION OF CONTRIBUTIONS TO THE FUND

20 ‘‘SEC. 254. (a)(1) Not later than June 30, 2005, the 

21 Secretary shall determine the unfunded liability of the 

22 Fund attributable to service performed as of September 

23 30, 2004, which is ‘active service’ for the purpose of sec24 tion 212. The Secretary shall establish an amortization 

25 schedule, including a series of annual installments com-
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1 mencing October 1, 2005, which provides for the liquida2 tion of such liability by October 1, 2044. 

3 ‘‘(2) The Secretary shall redetermine the unfunded 

4 liability of the Fund as of the close of the fiscal year, for 

5 each fiscal year beginning after September 30, 2004, 

6 through the fiscal year ending September 30, 2039, and 

7 shall establish a new amortization schedule, including a 

8 series of annual installments commencing on October 1 

9 of the second subsequent fiscal year, which provides for 

10 the liquidation of such liability by October 1, 2044. 

11 ‘‘(3) The Secretary shall redetermine the unfunded 

12 liability of the Fund as of the close of the fiscal year for 

13 each fiscal year beginning after September 30, 2039, and 

14 shall establish a new amortization schedule, including a 

15 series of annual installments commencing on October 1 

16 of the second subsequent fiscal year, which provides for 

17 the liquidation of such liability over 5 years. 

18 ‘‘(b) The Secretary shall determine each fiscal year, 

19 in sufficient time for inclusion in the budget request for 

20 the following fiscal year, the total amount of Department 

21 of Health and Human Services contributions to be made 

22 to the Fund during the fiscal year under section 255(a). 

23 That amount shall be the sum of—

24 ‘‘(1) the product of—
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1 ‘‘(A) the current estimate of the value of 

2 the single level percentage of basic pay to be de3 termined under subsection (c)(1) at the time of 

4 the most recent actuarial valuation under sub5 section (c); and 

6 ‘‘(B) the total amount of basic pay ex7 pected to be paid during that fiscal year to 

8 commissioned officers of the Public Health 

9 Service on active duty (other than active duty 

10 for training); and 

11 ‘‘(2) the product of—

12 ‘‘(A) the current estimate of the value of 

13 the single level percentage of basic pay and of 

14 compensation (paid pursuant to section 206 of 

15 title 37, United States Code) to be determined 

16 under subsection (c)(2) at the time of the most 

17 recent actuarial valuation under subsection (c); 

18 and 

19 ‘‘(B) the total amount of basic pay and of 

20 compensation (paid pursuant to section 206 of 

21 title 37, United States Code) expected to be 

22 paid during the fiscal year to commissioned of23 ficers of the Reserve Corps of the Public Health 

24 Service (other than officers on full-time duty 
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1 other than for training) who are not otherwise 

2 described in subparagraph (A). 

3 ‘‘(c) Not less often than every four years thereafter 

4 (or by the fiscal year end prior to the effective date of 

5 any statutory change affecting benefits payable on account 

6 of retirement, disability, or death to commissioned officers 

7 or their survivors), the Secretary shall carry out an actu8 arial valuation of benefits payable on account of retire9 ment, disability, or death to commissioned officers of the 

10 Public Health Service and to their survivors pursuant to 

11 part A of this title. Each such actuarial valuation shall 

12 be signed by an enrolled Actuary and shall include—

13 ‘‘(1) a determination (using the aggregate 

14 entry-age normal cost method) of a single level per15 centage of basic pay for commissioned officers of the 

16 Public Health Service on active duty (other than ac17 tive duty for training); and 

18 ‘‘(2) a determination (using the aggregate 

19 entry-age normal cost method) of a single level per20 centage of basic pay and of compensation (paid pur21 suant to section 206 of title 37, United States Code) 

22 of commissioned officers of the Reserve Corps of the 

23 Public Health Service (other than officers on full 

24 time duty other than for training) who are not oth25 erwise described in paragraph (1).
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1 ‘‘(d) All determinations under this section shall be in 

2 accordance with generally accepted actuarial principles 

3 and practices and, where appropriate, shall follow the gen4 eral pattern of methods and assumptions approved by the 

5 Department of Defense Retirement Board of Actuaries. 

6 ‘‘(e) The Secretary shall provide for the keeping of 

7 such records as are necessary for determining the actu8 arial status of the Fund. 

9 ‘‘PAYMENTS INTO THE FUND

10 ‘‘SEC. 255. (a) From amounts available to the De11 partment of Health and Human Services for salaries and 

12 expenses, the Secretary shall pay into the Fund at the end 

13 of each month the amount that is the sum of—

14 ‘‘(1) the product of—

15 ‘‘(A) the level percentage of basic pay de16 termined using all the methods and assump17 tions approved for the most recent (as of the 

18 first day of the current fiscal year) actuarial 

19 valuation under sections 254(c)(1) (except that 

20 any statutory change affecting benefits payable 

21 on account of retirement, disability, or death to 

22 commissioned officers or their survivors that is 

23 effective after the date of that valuation and on 

24 or before the first day of the current fiscal year 

25 shall be used in such determination); and 
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1 ‘‘(B) the total amount of basic pay accrued 

2 for that month by commissioned officers of the 

3 Public Health Service on active duty (other 

4 than active duty for training); and 

5 ‘‘(2) the product of—

6 ‘‘(A) the level percentage of basic pay and 

7 of compensation (paid pursuant to section 206 

8 of title 37, United States Code) determined 

9 using all the methods and assumptions ap10 proved for the most recent (as of the first day 

11 of the current fiscal year) actuarial valuation 

12 under section 254(c)(2) (except that any statu13 tory change affecting benefits payable on ac14 count of retirement, disability, or death to com15 missioned officers or their survivors that is ef16 fective after the date of that valuation and on 

17 or before the first day of the current fiscal year 

18 shall be used in such determinations); and 

19 ‘‘(B) the total amount of basic pay and of 

20 compensation (paid pursuant to section 206 of 

21 title 37, United States Code) accrued for that 

22 month by commissioned officers of the Reserve 

23 Corps of the Public Health Service (other than 

24 officers on full-time duty other than for train25 ing). 
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1 ‘‘(b) At the beginning of each fiscal year, beginning 

2 on October 1, 2005, the Secretary shall certify to the Sec3 retary of the Treasury the amount of the first installment 

4 under the most recent amortization schedule established 

5 under section 254(a). The Secretary of the Treasury shall 

6 pay into the Fund from the General Fund of the Treasury 

7 the amount so certified. Such payment shall be the con8 tribution to the Fund for that fiscal year. 

9 ‘‘INVESTMENTS OF ASSETS OF FUND

10 ‘‘SEC. 256. The Secretary may request the Secretary 

11 of the Treasury to invest such portion of the Fund as is 

12 not, in the judgment of the Secretary, required to meet 

13 the current needs of the Fund. Such investments shall be 

14 made by the Secretary of the Treasury in public debt secu15 rities with maturities suitable to the needs of the Fund, 

16 as determined by the Secretary, and bearing interest at 

17 rates determined by the Secretary of the Treasury, taking 

18 into consideration current market yields on outstanding 

19 marketable obligations of the United States of comparable 

20 maturities. The income on such investments shall be cred21 ited to and form a part of the Fund. 

22 ‘‘IMPLEMENTATION YEAR EXCEPTIONS

23 ‘‘SEC. 257. (a) To avoid funding shortfalls in the first 

24 year should formal actuarial determinations not be avail25 able in time for budget preparation, the amounts used in 

26 the first year in sections 255(a)(1)(A) and 255(a)(2)(A) 
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1 shall be set equal to those estimates in sections 

2 254(b)(1)(A) and 254(b)(2)(A) if final determinations are 

3 not available. The original unfunded liability as defined 

4 in section 254(a) shall include an adjustment to correct 

5 for this difference between the formal actuarial determina6 tions and the estimates in sections 254(b)(1)(A) and 

7 254(b)(2)(A).’’. 

8 (b) CONFORMING AMENDMENTS.—

9 (1) CONDITION OF DETAIL.—Section 214 of the 

10 Public Health Service Act (42 U.S.C. 215) is 

11 amended by adding at the end the following new 

12 subsection: 

13 ‘‘(e) The Secretary shall condition any detail under 

14 subsection (a), (b), or (c) upon the agreement of the exec15 utive department, State, subdivision, Committee of the 

16 Congress, or institution concerned to pay to the Depart17 ment of Health and Human Services, in advance or by 

18 way of reimbursement, for the full cost of the detail in19 cluding that portion of the contributions under section 

20 255(a) that is attributable to the detailed personnel.’’. 

21 (2) EXEMPTION FROM SEQUESTRATION.—Sec22 tion 255(g)(1) of the Balanced Budget and Emer23 gency Deficit Control Act of 1985 (2 U.S.C. 

24 905(g)(1)) is amended—
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1 (A) in subparagraph (A), by inserting after 

2 the item relating to ‘‘payment to the foreign 

3 service retirement and disability fund’’ the fol4 lowing item: ‘‘Payment to the Public Health 

5 Service Commissioned Corps Retirement Fund 

6 (75–0380–0–1–551);’’; and 

7 (B) in subparagraph (B), by inserting 

8 after the item relating to the ‘‘Pensions for 

9 former Presidents’’ the following item: ‘‘Public 

10 Health Service Commissioned Corps Retirement 

11 Fund (75–8274–0–7–602);’’. 

12 (c) TRANSFER OF APPROPRIATIONS.—There shall be 

13 transferred on October 1, 2006, into the fund established 

14 under section 251 of the Public Health Service Act, as 

15 added by subsection (a), any obligated or unobligated bal16 ances of appropriations made to the Department of Health 

17 and Human Services that are currently available for bene18 fits payable on account of retirement, disability, or death 

19 to commissioned officers of the Public Health Service and 

20 to their survivors pursuant to part A of title II of the Pub21 lic Health Service Act, and amounts so transferred shall 

22 be part of the assets of the Fund.
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1 SEC. 405. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN2 ISTRATION COMMISSIONED OFFICER CORPS 

3 RETIREMENT SYSTEM. 

4 (a) IN GENERAL.—The National Oceanic and Atmos5 pheric Administration Commissioned Officer Corps Act of 

6 2002 (title II of Public Law 107–372) is amended by in7 serting after section 246 (33 U.S.C. 3046) the following 

8 new section: 

9 ‘‘SEC. 246A. (a) ESTABLISHMENT AND PURPOSE OF

10 NOAA COMMISSIONED OFFICER CORPS RETIREMENT

11 FUND.—(1) There is established on the books of the 

12 Treasury a fund to be known as the National Oceanic and 

13 Atmospheric Administration Commissioned Officer Corps 

14 Retirement Fund (hereinafter in this section referred to 

15 as the ‘Fund’), which shall be administered by the Sec16 retary. The Fund shall be used for the accumulation of 

17 funds in order to finance on an actuarially sound basis 

18 liabilities of the Department of Commerce under military 

19 retirement and survivor benefit programs for the commis20 sioned officers corps. 

21 ‘‘(2) The term ‘military retirement and survivor ben22 efit program’ means—

23 ‘‘(A) the provisions of this title and title 10, 

24 United States Code, creating entitlement to, or de25 termining, the amount of retired pay; 
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1 ‘‘(B) the programs under the jurisdiction of the 

2 Department of Defense providing annuities for sur3 vivors and members and former members of the 

4 Armed Forces, including chapter 73 of title 10, sec5 tion 4 of Public Law 92–425, and section 5 of Pub6 lic Law 96–202, as made applicable to the commis7 sioned officer corps by section 261. 

8 ‘‘(b) ASSETS OF THE FUND.—There shall be depos9 ited into the Fund the following, which shall constitute 

10 the assets of the Fund: 

11 ‘‘(1) Amounts paid into the Fund under sub12 section (e). 

13 ‘‘(2) Any return on investment of the assets of 

14 the Fund. 

15 ‘‘(3) Amounts transferred into the Fund pursu16 ant to section 405(c) of the Family Budget Protec17 tion Act of 2004.

18 ‘‘(c) PAYMENTS FROM THE FUND.—There shall be 

19 paid from the Fund benefits payable on account of mili20 tary retirement and survivor benefit programs to commis21 sioned officers of the commissioned officer corps and their 

22 survivors. 

23 ‘‘(d) DETERMINATION OF CONTRIBUTIONS TO THE

24 FUND.—(1)(A) Not later than June 30, 2004, the Sec25 retary shall determine the unfunded liability of the Fund 
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1 attributable to service performed as of September 30, 

2 2004, which is ‘active service’ for the purpose of this title. 

3 The Secretary shall establish an amortization schedule, in4 cluding a series of annual installments commencing Octo5 ber 1, 2005, which provides for the liquidation of such 

6 liability by October 1, 2044. 

7 ‘‘(B) The Secretary shall redetermine the unfunded 

8 liability of the Fund as of the close of the fiscal year, for 

9 each fiscal year beginning after September 30, 2004, 

10 through the fiscal year ending September 30, 2039, and 

11 shall establish a new amortization schedule, including a 

12 series of annual installments commencing on September 

13 30 of the subsequent fiscal year, which provides for the 

14 liquidation of such liability by October 1, 2044. 

15 ‘‘(C) The Secretary shall redetermine the unfunded 

16 liability of the Fund as of the close of the fiscal year for 

17 each fiscal year beginning after September 30, 2039, and 

18 shall establish a new authorization schedule, including se19 ries of annual installments commencing on October 1 of 

20 the second subsequent fiscal year, which provides for the 

21 liquidation of such liability over 5 years. 

22 ‘‘(2) The Secretary shall determine each fiscal year, 

23 in sufficient time for inclusion in the budget request for 

24 the following fiscal year, the total amount of Department 

25 of Commerce contributions to be made to the Fund during 
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1 that fiscal year under (e). The amount shall be the product 

2 of—

3 ‘‘(A) the current estimate of the value of the 

4 single level percentage of basic pay to be determined 

5 under subsection (e) at the time of the most recent 

6 actuarial valuation under paragraph (3); and 

7 ‘‘(B) the total amount of basic pay expected to 

8 be paid during that fiscal year to commissioned offi9 cers of NOAA on active duty. 

10 ‘‘(3) Not less often then every four years (or by the 

11 fiscal year end before the effective date of any statutory 

12 change affecting benefits payable on account of retire13 ment, disability, or death to commissioned officers or their 

14 survivors), the Secretary shall carry out an actuarial valu15 ation of benefits payable on account of military retirement 

16 and survivor benefit programs to commissioned officers of 

17 the Administration and to their survivors. Each such actu18 arial valuation shall be signed by an enrolled Actuary and 

19 shall include a determination (using the aggregate entry20 age normal cost method) of a single level percentage of 

21 basic pay for commissioned officers on active duty. 

22 ‘‘(4) All determinations under this section shall be in 

23 accordance with generally accepted actuarial principles 

24 and practices, and, where appropriate, shall follow the 

25 general pattern of methods and assumptions approved by 
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1 the Department of Defense Retirement Board of Actu2 aries. 

3 ‘‘(5) The Secretary shall provide for the keeping of 

4 such records as are necessary for determining the actu5 arial status of the Fund. 

6 ‘‘(e) PAYMENTS INTO THE FUND.—(1) From 

7 amounts appropriated to the National Oceanic Atmos8 pheric Administration for salaries and expenses, the Sec9 retary shall pay into the Fund at the end of each month 

10 the amount that is the product of—

11 ‘‘(A) the level percentage of basic pay deter12 mined using all the methods and assumptions ap13 proved for the most recent (as of the first day of the 

14 current fiscal year) actuarial valuation under sub15 section (d) (except that any statutory change affect16 ing benefits payable on account of military retire17 ment and survivor benefit programs to commissioned 

18 officers of the Administration and to their survivors 

19 that is effective date after the date of that valuation 

20 and on or before the first day of the current fiscal 

21 year shall be used in such determination); and 

22 ‘‘(B) the total amount of basic pay accrued for 

23 that month by commissioned officers on active duty. 

24 ‘‘(2)(A) At the beginning of each fiscal year, the Sec25 retary shall determine the sum of—
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1 ‘‘(i) the amount of the payment for that year 

2 under the amortization of the original unfunded li3 ability of the Fund; 

4 ‘‘(ii) the amount (including any negative 

5 amount) for that year under the most recent amorti6 zation schedule determined by the Secretary for the 

7 amortization of any cumulative actuarial gain or loss 

8 to the Fund, resulting from changes in benefits; and 

9 ‘‘(iii) the amount (including any negative 

10 amount) for that year under the most recent amorti11 zation schedule determined by the Secretary for the 

12 amortization or any cumulative actuarial gain or loss 

13 to the Fund resulting from changes in actuarial as14 sumptions and from experience different from the 

15 assumed since the last valuation. 

16 The Secretary shall promptly certify the amount of the 

17 sum to the Secretary of the Treasury. 

18 ‘‘(B) Upon receiving the certification pursuant to 

19 paragraph (1), the Secretary of the Treasury shall 

20 promptly pay into the Fund from the General Fund of 

21 the Treasury the amount so certified. Such payment shall 

22 be the contribution to the Fund for that fiscal year. 

23 ‘‘(f) INVESTMENT OF ASSETS OF THE FUND.—The 

24 Secretary may request the Secretary of the Treasury to 

25 invest such portion of the Fund as is not, in the judgment 
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1 of the Secretary, required to meet the current needs of 

2 the Fund. Such investments shall be made by the Sec3 retary of the Treasury in public debt securities with matu4 rities suitable to the needs of the Fund, as determined 

5 by the Secretary, and bearing interest at rates determined 

6 by the Secretary of the Treasury, taking into consideration 

7 current market yields on outstanding marketable obliga8 tions of the United States of comparable maturities. The 

9 income of such investments shall be credited to and form 

10 a part of the Fund. 

11 ‘‘(g) IMPLEMENTATION YEAR EXCEPTIONS.—(1) To 

12 avoid funding shortfalls in the first year should formal ac13 tuarial determinations not be available in time for budget 

14 preparation, the amounts used in the first year in sub15 section (e)(1)(A) shall be set equal to the estimate in sub16 section (d)(2)(A) if final determinations are not available. 

17 The original unfunded liability as determined in sub18 section (d)(1) shall include an adjustment to correct for 

19 this difference between the formal actuarial determina20 tions and the estimates in subsection (d)(2)(A).’’. 

21 (b) EXEMPTION FROM SEQUESTRATION.—Section 

22 255(g)(1)(B) of the Balanced Budget and Emergency 

23 Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(B)) is 

24 amended by striking ‘‘National Oceanic and Atmospheric 

25 Administration retirement (13–1450–0–1–306);’’ and in-
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1 serting ‘‘National Oceanic and Atmospheric Administra2 tion Commissioned Officer Corps Retirement Fund;’’. 

3 (c) TRANSFER OF APPROPRIATIONS.—There shall be 

4 transferred on October 1, 2006, into the fund established 

5 under section 246A(a) of the National Oceanic and At6 mospheric Administration Commissioned Officer Corps 

7 Act of 2002 (title II of Public Law 107–372, as added 

8 by subsection (a)), any obligated and unobligated balance 

9 of appropriations made to the Department of Commerce 

10 that are available as of the date of the enactment of this 

11 Act for benefits payable on account of military retirement 

12 and survivor benefit programs to commissioned officers of 

13 the NOAA Commissioned Officer Corps and to their sur14 vivors, and amounts so transferred shall be part of the 

15 assets of the Fund, effective October 1, 2006. 

16 (d) EFFECTIVE DATE.—Subsection (c) (relating to 

17 payments from the Fund) and (e) (relating to payments 

18 into the Fund) of section 246A of the National Oceanic 

19 and Atmospheric Administration Commissioned Officer 

20 Corps Act of 2002 (title II of Public Law 107–372, as 

21 added by subsection (a)), shall take effect on October 1, 

22 2006.

23 SEC. 406. COAST GUARD MILITARY RETIREMENT SYSTEM. 

24 (a) ACCRUAL FUNDING FOR COAST GUARD RETIRE25 MENT.—
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1 (1) IN GENERAL.—Chapter 11 of title 14, 

2 United States Code, is amended by adding at the 

3 end the following new subchapter: 

4 ‘‘SUBCHAPTER V—COAST GUARD MILITARY 

5 RETIREMENT FUND

6 ‘‘§ 441. Establishment and purpose of Fund; defini7 tions 

8 ‘‘(a) ESTABLISHMENT OF FUND; PURPOSE.—There 

9 is established on the books of the Treasury a fund to be 

10 known as the Coast Guard Military Retirement Fund 

11 (hereinafter in this subchapter referred to as the ‘Fund’), 

12 which shall be administered by the Secretary. The Fund 

13 shall be used for the accumulations of funds in order to 

14 finance on an actuarially sound basis liabilities of the 

15 Coast Guard under military retirement and survivor ben16 efit programs. 

17 ‘‘(b) MILITARY RETIREMENT AND SURVIVOR BEN18 EFIT PROGRAMS DEFINED.—In this subchapter, the term 

19 ‘military retirement and survivor benefit programs’ 

20 means—

21 ‘‘(1) the provisions of this title and title 10 cre22 ating entitlement to, or determining the amount of, 

23 retired pay; 

24 ‘‘(2) the programs providing annuities for sur25 vivors of members and former members of the 
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1 armed forces, including chapter 73 of title 10, sec2 tion 4 of Public Law 92–425, and section 5 of Pub3 lic Law 96–402; and 

4 ‘‘(3) the authority provided in section 1048(h) 

5 of title 10. 

6 ‘‘(c) SECRETARY DEFINED.—In this subchapter, the 

7 term ‘Secretary’ means the Secretary of Homeland Secu8 rity when the Coast Guard is not operating as a service 

9 in the Navy and the Secretary of Defense when the Coast 

10 Guard is operating as a service in the Navy. 

11 ‘‘§ 442. Assets of the Fund 

12 ‘‘There shall be deposited into the Fund the fol13 lowing, which shall constitute the assets of the Fund: 

14 ‘‘(1) Amounts paid into the Fund under section 

15 445 of this title. 

16 ‘‘(2) Any return on investment of the assets of 

17 the Fund. 

18 ‘‘(3) Amounts transferred into the Fund pursu19 ant to section 406(d) of the Family Budget Protec20 tion Act of 2004. 

21 ‘‘§ 443. Payments from the Fund 

22 ‘‘(a) IN GENERAL.—There shall be paid from the 

23 Fund the following: 

24 ‘‘(1) Retired pay payable to persons on the re25 tired list of the Coast Guard.
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1 ‘‘(2) Retired pay payable under chapter 1223 of 

2 title 10 to former members of the Coast Guard and 

3 the former United States Lighthouse Service. 

4 ‘‘(3) Benefits payable under programs that pro5 vide annuities for survivors of members and former 

6 members of the armed forces, including chapter 73 

7 of title 10, section 4 of Public Law 92–425, and sec8 tion 5 of Public Law 96–402. 

9 ‘‘(4) Amounts payable under section 1048(h) of 

10 title 10. 

11 ‘‘(b) AVAILABILITY OF ASSETS OF THE FUND.—The 

12 assets of the Fund are hereby made available for payments 

13 under subsection (a). 

14 ‘‘§ 444. Determination of contributions to the Fund 

15 ‘‘(a) INITIAL UNFUNDED LIABILITY.—(1) Not later 

16 than June 30, 2005, the Secretary shall determine the un17 funded liability of the Fund attributable to service per18 formed as of September 30, 2004, which is ‘active service’ 

19 for the purposes of section 212. The Secretary shall estab20 lish an amortization schedule, including a series of annual 

21 installments commencing October 1, 2005, which provides 

22 for the liquidation of such liability by October 1, 2044. 

23 ‘‘(2) The Secretary shall redetermine the unfunded 

24 liability of the Fund as of the close of the fiscal year, for 

25 each beginning after September 30, 2004, through the fis-
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1 cal year ending September 30, 2039, and shall establish 

2 a new amortization schedule, including a series of annual 

3 installments commencing on October 1 of the second sub4 sequent fiscal year, which provides for the liquidation of 

5 such liability by October 1, 2044. 

6 ‘‘(3) The Secretary shall redetermine the unfunded 

7 liability of the Fund as of the close of the fiscal year for 

8 each fiscal year beginning after September 30, 2039, and 

9 shall establish a new amortization schedule, including a 

10 series of annual installments commencing on October 1 

11 of the second subsequent fiscal year, which provides for 

12 the liquidation of such liability over five years. 

13 ‘‘(b) ANNUAL CONTRIBUTIONS FOR CURRENT SERV14 ICES.—(1) The Secretary shall determine each fiscal year, 

15 in sufficient time for inclusion in the budget request for 

16 the following fiscal year, the total amount of Department 

17 of Homeland Security, or Department of Defense, con18 tributions to be made to the Fund during that fiscal year 

19 under section 445(a) of this title. That amount shall be 

20 the sum of the following: 

21 ‘‘(A) The product of—

22 ‘‘(i) the current estimate of the value of 

23 the single level percentage of basic pay to be de24 termined under subsection (c)(1)(A) at the time 
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1 of the most recent actuarial valuation under 

2 subsection (c); and 

3 ‘‘(ii) the total amount of basic pay ex4 pected to be paid during that fiscal year to 

5 members of the Coast Guard on active duty 

6 (other than active duty for training). 

7 ‘‘(B) The product of—

8 ‘‘(i) the current estimate of the value of 

9 the single level percentage of basic pay and of 

10 compensation (paid pursuant to section 206 of 

11 title 37) to be determined under subsection 

12 (c)(1)(B) at the time of the most recent actu13 arial valuation under subsection (c); and 

14 ‘‘(ii) the total amount of basic pay and 

15 compensation (paid pursuant to section 206 of 

16 title 37) expected to be paid during that fiscal 

17 year to members of the Coast Guard Ready Re18 serve (other than members on full-time Reserve 

19 duty other than for training) who are not other20 wise described in subparagraph (A)(ii). 

21 ‘‘(2) The amount determined under paragraph (1) for 

22 any fiscal year is the amount needed to be appropriated 

23 to the Department of Homeland Security for that fiscal 

24 year for payments to be made to the Fund during that 

25 year under section 445(a) of this title. The President shall 
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1 include not less than the full amount so determined in the 

2 budget transmitted to Congress for that fiscal year under 

3 section 1105 of title 31. The President may comment and 

4 make recommendations concerning any such amount. 

5 ‘‘(c) PERIODIC ACTUARIAL VALUATIONS.—(1) Not 

6 less often than every four years (or before the effective 

7 date of any statutory change affecting benefits payable on 

8 account of retirement, disability, or death to members of 

9 the Coast Guard or their survivors), the Secretary shall 

10 carry out an actuarial valuation of the Coast Guard mili11 tary retirement and survivor benefit programs. Each actu12 arial valuation of such programs shall be signed by an en13 rolled actuary and shall include—

14 ‘‘(A) a determination (using the aggregate 

15 entry-age normal cost method) of a single level per16 centage of basic pay for members of the Coast 

17 Guard on active duty (other than active duty for 

18 training); and 

19 ‘‘(B) a determination (using the aggregate 

20 entry-age normal cost method) of single level per21 centage of basic pay and of compensation (paid pur22 suant to section 206 of title 37) for members of the 

23 Ready Reserve of the Coast Guard (other than mem24 bers on full-time Reserve duty other than for train-
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1 ing) who are not otherwise described in subpara2 graph (A). 

3 ‘‘(2) Such single level percentages shall be used for 

4 the purposes of subsection (b) and section 445(a) of this 

5 title. 

6 ‘‘(d) USE OF GENERALLY ACCEPTED ACTUARIAL

7 PRINCIPLES AND PRACTICES.—All determinations under 

8 this section shall be in accordance with generally accepted 

9 actuarial principles and practices and, where appropriate, 

10 shall follow the general pattern of methods and assump11 tions approved by the Department of Defense Retirement 

12 Board of Actuaries. 

13 ‘‘(e) RECORDS.—The Secretary shall provide for the 

14 keeping of such records as are necessary for determining 

15 the actuarial status of the Fund. 

16 ‘‘§ 445. Payments into the Fund 

17 ‘‘(a) MONTHLY ACCRUAL CHARGE FOR CURRENT

18 SERVICES.—From amounts appropriated to the Coast 

19 Guard for salaries and expenses, the Secretary shall pay 

20 into the Fund at the end of each month as the Department 

21 of Homeland Security, or Department of Defense, con22 tribution to the Fund for that month the amount that is 

23 the sum of the following:

24 ‘‘(1) The product of—
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1 ‘‘(A) the level percentage of basic pay de2 termined using all the methods and assump3 tions approved for the most recent (as of the 

4 first day of the current fiscal year) actuarial 

5 valuation under section 444(c)(1)(A) of this 

6 title (except that any statutory change in the 

7 military retirement and survivor benefit systems 

8 that is effective after the date of that valuation 

9 and on or before the first day of the current fis10 cal year shall be used in such determination); 

11 and 

12 ‘‘(B) the total amount of basic pay accrued 

13 for that month by members of the Coast Guard 

14 on active duty (other than active duty for train15 ing). 

16 ‘‘(2) The product of—

17 ‘‘(A) the level percentage of basic pay and 

18 compensation (accrued pursuant to section 206 

19 of title 37) determined using all the methods 

20 and assumptions approved for the most recent 

21 (as of the first day of the current fiscal year) 

22 actuarial valuation under section 444(c)(1)(B) 

23 of this title (except that any statutory change 

24 in the military retirement and survivor benefit 

25 systems that is effective after the date of that 
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1 valuation and on or before the first day of the 

2 current fiscal year shall be used in such deter3 mination); and 

4 ‘‘(B) the total amount of basic pay and of 

5 compensation (paid pursuant to section 206 of 

6 title 37) accrued for that month by members of 

7 the Ready Reserve (other than members of full8 time Reserve duty other than for training) who 

9 are not otherwise described in paragraph 

10 (1)(B). 

11 ‘‘(b) ANNUAL PAYMENT FOR UNFUNDED LIABIL12 ITIES.—(1) At the beginning of each fiscal year, beginning 

13 on October 1, 2005, the Secretary shall certify to the Sec14 retary of the Treasury the amount of the first installment 

15 under the most recent amortization schedule established 

16 under section 254(a). The Secretary of the Treasury shall 

17 promptly pay into the Fund from the General Fund of 

18 the Treasury the amount so certified. Such payment shall 

19 be the contribution to the Fund for that fiscal year. 

20 ‘‘§ 446. Investment of assets of the Fund 

21 ‘‘The Secretary may request the Secretary of the 

22 Treasury to invest such portion of the Fund as is not, 

23 in the judgment of the Secretary, required to meet the 

24 current needs of the Fund. Such investments shall be 

25 made by the Secretary of the Treasury in public debt secu-
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1 rities with maturities suitable to the needs of the Fund, 

2 as determined by the Secretary, and bearing interest at 

3 rates determined by the Secretary of the Treasury, taking 

4 into consideration current market yields on outstanding 

5 marketable obligations of the United States of comparable 

6 maturities. The income on such investments shall be cred7 ited to and form a part of the Fund.’’. 

8 (2) TECHNICAL AMENDMENTS.—Such chapter 

9 is further amended—

10 (A) by amending the center heading after 

11 the table of sections to read as follows: 

12 ‘‘SUBCHAPTER I—OFFICERS’’; 

13 (B) by amending the center heading after 

14 section 336 to read as follows: 

15 ‘‘SUBCHAPTER II—ENLISTED MEMBERS’’; 

16 (C) by amending the center heading after 

17 section 373 to read as follows: 

18 ‘‘SUBCHAPTER III—GENERAL PROVISIONS’’; 

19 and 

20 (D) by amending the center heading after 

21 section 425 to read as follows: 

22 ‘‘SUBCHAPTER IV—SPECIAL PROVISIONS’’. 

23 (3) CLERICAL AMENDMENTS.—The table of sec24 tions at the beginning of such chapter is amended—
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1 (A) by striking ‘‘OFFICERS’’ at the begin2 ning of the table and inserting ‘‘SUBCHAPTER

3 I—OFFICERS’’; 

4 (B) by striking ‘‘ENLISTED MEMBERS’’ 

5 after the item relating to section 336 and in6 serting ‘‘SUBCHAPTER II—ENLISTED MEM7 BERS’’; 

8 (C) by striking ‘‘GENERAL PROVISIONS’’ 

9 after the item relating to section 373 and in10 serting ‘‘SUBCHAPTER III—GENERAL PROVI11 SIONS’’; 

12 (D) by striking ‘‘SPECIAL PROVISIONS’’ 

13 after the item relating to section 425 and in14 serting ‘‘SUBCHAPTER IV—SPECIAL PROVI15 SIONS’’; and 

16 (E) by adding at the end the following:

‘‘SUBCHAPTER V—COAST GUARD MILITARY RETIREMENT FUND 

‘‘441. Establishment and purpose of Fund; definitions. 

‘‘442. Assets of the Fund. 

‘‘443. Payments from the Fund. 

‘‘444. Determination of contributions to the Fund. 

‘‘445. Payments into the Fund. 

‘‘446. Investment of assets of the Fund.’’.

17 (b) IMPLEMENTATION YEAR EXCEPTIONS.—To avoid 

18 funding shortfalls in the first year of implementation of 

19 subchapter V of chapter 11 of title 14, United States 

20 Code, as added by subsection (a), if formal actuarial deter21 minations are not available in time for budget preparation, 

22 the amounts used in the first year under sections 
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1 445(a)(1)(A) and 445(a)(2)(A) of such title shall be set 

2 equal to those estimates in sections 444(b)(1)(A)(i) and 

3 444(b)(1)(B)(i), respectively, of such title if final deter4 minations are not available. The original unfunded liabil5 ity, as defined in section 444(a) of such title, shall include 

6 an adjustment to correct for this difference between the 

7 formal actuarial determinations and the estimates in sec8 tions 444(b)(1)(A)(i) and 444(b)(1)(B)(i) of such title.

9 (c) CONFORMING AMENDMENT.—Subparagraph (B) 

10 of section 255(g)(1) of the Balanced Budget and Emer11 gency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)) 

12 is amended by striking ‘‘Retired Pay, Coast Guard (69–

13 0241–0–1–403)’’ and inserting ‘‘Coast Guard Military Re14 tirement Fund (69–0241–01–403)’’. 

15 (d) TRANSFER OF EXISTING BALANCES.—

16 (1) TRANSFER.—There shall be transferred into 

17 the Fund on October 1, 2005, any obligated and un18 obligated balances of appropriations made to the De19 partment of Homeland Security that are currently 

20 available for retired pay, and amounts so transferred 

21 shall be part of the assets of the Fund. 

22 (2) FUND DEFINED.—For purposes of para23 graph (1), the term ‘‘Fund’’ means the Coast Guard 

24 Military Retirement Fund established under section
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1 441 of title 14, United States Code, as added by 

2 subsection (a). 

3 (e) EFFECTIVE DATE.—Sections 443 (relating to 

4 payments from the Fund) and 445 (relating to payments 

5 into the Fund) of title 14, United States Code, as added 

6 by subsection (a), shall take effect on October 1, 2005. 

7 Subtitle B—Accrual Funding of 

8 Post-Retirement Health Benefits 

9 Costs for Federal Employees 

10 SEC. 411. FEDERAL EMPLOYEES HEALTH BENEFITS FUND. 

11 (a) Section 8906 of title 5, United States Code, is 

12 amended—

13 (1) by redesignating subsection (c) as sub14 section (c)(1) and by adding at the end the following 

15 new paragraphs:

16 ‘‘(2) In addition to Government contributions re17 quired by subsection (b) and paragraph (1), each employ18 ing agency shall contribute amounts as determined by the 

19 Office to be necessary to prefund the accruing actuarial 

20 cost of post-retirement health benefits for each of the 

21 agency’s current employees who are eligible for Govern22 ment contributions under this section. Amounts under this 

23 paragraph shall be paid by the employing agency separate 

24 from other contributions under this section, from the ap-
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1 propriations or fund used for payment of the salary of the 

2 employee, on a schedule to be determined by the Office. 

3 ‘‘(3) Paragraph (2) shall not apply to the United 

4 States Postal Service or the government of the District 

5 of Columbia.’’; and 

6 (2) by amending subsection (g)(1) to read as 

7 follows: 

8 ‘‘(g)(1) Except as provided in paragraphs (2) and 

9 (3), all Government contributions authorized by this sec10 tion for health benefits for an annuitant shall be paid from 

11 the Employees Health Benefits Fund to the extent that 

12 funds are available in accordance with section 8909(h)(6) 

13 and, if necessary, from annual appropriations which are 

14 authorized to be made for that purpose and which may 

15 be made available until expended.’’. 

16 (b) Section 8909 of title 5, United States Code, is 

17 amended by adding at the end the following new sub18 section: 

19 ‘‘(h)(1) Not later than June 30, 2006, the Office 

20 shall determine the existing liability of the Fund for post21 retirement health benefits, excluding the liability of the 

22 United States Postal Service for service under section 

23 8906(g)(2), under this chapter as of September 30, 2006. 

24 The Office shall establish an amortization schedule, in25 cluding a series of annual installments commencing Sep-
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1 tember 30, 2006, which provides for the liquidation of 

2 such liability by September 30, 2043. 

3 ‘‘(2) At the close of each fiscal year, for fiscal years 

4 beginning after September 30, 2005, the Office shall de5 termine the supplemental liability of the Fund for post6 retirement health benefits, excluding the liability attrib7 utable to the United States Postal Service for service sub8 ject to section 8906(g)(2), and shall establish an amortiza9 tion schedule, including a series of annual installments 

10 commencing on September 30 of the subsequent fiscal 

11 year, which provides for liquidation of such supplemental 

12 liability over 30 years. 

13 ‘‘(3) Amortization schedules established under this 

14 paragraph shall be set in accordance with generally accept15 ed actuarial practices and principles. 

16 ‘‘(4) At the end of each fiscal year on and after Sep17 tember 30, 2006, the Office shall notify the Secretary of 

18 the Treasury of the amounts of the next installments 

19 under the most recent amortization schedules established 

20 under paragraphs (1) and (2). Before closing the accounts 

21 for the fiscal year, the Secretary shall credit the sum of 

22 these amounts (including in that sum any negative 

23 amount for the amortization of the supplemental liability) 

24 to the Fund, as a Government contribution, out of any 
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1 money in the Treasury of the United States not otherwise 

2 appropriated. 

3 ‘‘(5) For the purpose of carrying out paragraphs (1) 

4 and (2), the Office shall perform or arrange for actuarial 

5 determinations and valuations and shall prescribe reten6 tion of such records as it considers necessary for making 

7 periodic actuarial valuations of the Fund. 

8 ‘‘(6) Notwithstanding subsection (b), the amounts de9 posited into the Fund pursuant to this subsection and sec10 tion 8906(c)(2) to prefund post-retirement health benefits 

11 costs shall be segregated within the Fund so that such 

12 amounts, as well as earnings and proceeds under sub13 section (c) attributable to them, may be used exclusively 

14 for the purpose of paying Government contributions for 

15 post-retirement health benefits costs. When such amounts 

16 are used in combination with amounts withheld from an17 nuitants to pay for health benefits, a portion of the con18 tributions shall then be set aside in the Fund as described 

19 in subsection (b). 

20 ‘‘(7) Under this subsection, ‘supplemental liability’ 

21 means—

22 ‘‘(A) the actuarial present value for future post23 retirement health benefits that are the liability of 

24 the Fund, less 

25 ‘‘(B) the sum of—
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1 ‘‘(i) the actuarial present value of all fu2 ture contributions by agencies and annuitants 

3 to the Fund toward those benefits pursuant to 

4 section 8906; 

5 ‘‘(ii) the present value of all scheduled am6 ortization payments to the Fund pursuant to 

7 paragraphs (1) and (2); 

8 ‘‘(iii) the Fund balance as of the date the 

9 supplemental liability is determined, to the ex10 tent that such balance is attributable to post-re11 tirement benefits; and 

12 ‘‘(iv) any other appropriate amount, as de13 termined by the Office in accordance with gen14 erally accepted actuarial practices and prin15 ciples.’’.

16 SEC. 412. FUNDING UNIFORMED SERVICES HEALTH BENE17 FITS FOR ALL RETIREES. 

18 Title 10, United States Code, is amended—

19 (1) in the title of chapter 56, by striking ‘‘DE20 PARTMENT OF DEFENSE MEDICARE21 ELIGIBLE’’ and inserting ‘‘UNIFORMED 

22 SERVICES’’; 

23 (2) in section 1111—

24 (A) in subsection (a)—
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1 (i) by striking ‘‘Department of De2 fense Medicare-Eligible’’ and inserting 

3 ‘‘Uniformed Services’’; 

4 (ii) by striking ‘‘Department of De5 fense under’’; and 

6 (iii) by striking ‘‘for medicare-eligible 

7 beneficiaries’’; 

8 (B) in subsection (c)—

9 (i) by striking ‘‘The Secretary of De10 fense may’’ and inserting ‘‘The Secretary 

11 of Defense shall’’; 

12 (ii) by striking ‘‘with any other’’ and 

13 inserting ‘‘with each’’;

14 (iii) by striking ‘‘Any such agree15 ment’’ and inserting ‘‘Such agreements’’; 

16 and 

17 (iv) by striking ‘‘administering Sec18 retary may’’ and inserting ‘‘administrative 

19 Secretary shall’’; 

20 (3) in section 1113—

21 (A) in subsection (a)—

22 (i) by striking ‘‘and are medicare eli23 gible’’; 

24 (ii) by striking ‘‘who are medicare eli25 gible’’; and 
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1 (iii) by adding at the end the fol2 lowing new sentence: ‘‘For the fiscal year 

3 starting October 1, 2004, only, the pay4 ments will be solely for the costs of mem5 bers or former members of a uniformed 

6 service who are entitled to retired or re7 tainer pay and are medicare-eligible, and 

8 eligible dependents or survivors who are 

9 medicare-eligible.’’; 

10 (B) in subsection (c)(1), by striking ‘‘who 

11 are medicare-eligible’’; 

12 (C) in subsection (d), by striking ‘‘who are 

13 medicare-eligible’’; and 

14 (D) in subsection (f), by striking ‘‘If’’ and 

15 inserting ‘‘When’’; 

16 (4) in section 1114, in subsection (a)(1), by 

17 striking ‘‘Department of Defense Medicare-Eligible’’ 

18 and inserting ‘‘Uniformed Services’’; 

19 (5) in section 1115—

20 (A) in subsection (b)(2), by striking ‘‘The 

21 amount determined under paragraph (1) for 

22 any fiscal year is the amount needed to be ap23 propriated to the Department of Defense (or to 

24 the other executive department having jurisdic25 tion over the participating uniformed service)’’ 
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1 and inserting ‘‘The amount determined under 

2 paragraph (1), or the amount determined under 

3 section 1111(c) for a participating uniformed 

4 service, for any fiscal year, is the amount need5 ed to be appropriated to the Department of De6 fense (or to any other executive department 

7 having jurisdiction over a participating uni8 formed service)’’; 

9 (B) in subsection (c)(2), by striking ‘‘for 

10 medicare eligible beneficiaries’’; and 

11 (C) by adding at the end the following new 

12 subsection: 

13 ‘‘(f) For the fiscal year starting October 1, 2004, 

14 only, the amounts in this section shall be based solely on 

15 the costs of medicare-eligible benefits of beneficiaries and 

16 the costs for their eligible dependents or survivors who are 

17 medicare-eligible, and shall be recalculated thereafter to 

18 reflect the cost of beneficiaries defined in section 1111.’’; 

19 and 

20 (6) in section 1116—

21 (A) in subsection (a)(1)(A), by striking 

22 ‘‘for medicare-eligible beneficiaries’’; 

23 (B) in subsection (a)(2)(A), by striking 

24 ‘‘for medicare-eligible beneficiaries’’; and 
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1 (C) in subsection (c), by striking ‘‘sub2 section (a) shall be paid from funds available 

3 for the health care programs’’ and inserting 

4 ‘‘subsection (a) and section 1111(c) shall be 

5 paid from funds available for the pay of mem6 bers of the participating uniformed services 

7 under the jurisdiction of the respective admin8 istering secretaries’’. 

9 SEC. 413. EFFECTIVE DATE. 

10 Except as otherwise provided, this title shall take ef11 fect upon enactment with respect to fiscal years beginning 

12 after 2005. 

13 Subtitle C—Limit on the Public 

14 Debt

15 SEC. 421. FINDINGS. 

16 The Congress finds the following: 

17 (1) Since 1997, Congress has paid down and 

18 retired approximately $450,000,000,000 of the Gov19 ernment’s debt which was previously held by the 

20 public. 

21 (2) This reduction in the Government’s debt to 

22 the public should permit a lowering of the statutory 

23 debt ceiling. However, the statutory definition min24 gles both the public debt and intragovernment liabil-
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1 ities, the latter of which do not represent resource 

2 withdrawals for the economy. 

3 (3) Intragovernment accounts such as the social 

4 security trust funds, the Civil Service Retirement 

5 and Disability Fund, the Department of Defense 

6 Military Retirement Fund, and the Unemployment 

7 Trust Fund constitute accrued liabilities of the Gov8 ernment which will be paid from future receipts, 

9 taxes, or borrowing. If the Government issues debt 

10 to the public to fund such liabilities in the future, 

11 that debt will properly be subject to the debt ceiling. 

12 (4) Properly defining the debt of the Govern13 ment would permit lowering the debt ceiling to take 

14 account of, and lock in, the fiscal progress that has 

15 been made. 

16 SEC. 422. PURPOSE. 

17 It is the purpose of this subtitle to—

18 (1) properly define the public debt to exclude 

19 intragovernment obligations; and 

20 (2) reduce the public debt ceiling in recognition 

21 of the reduction in outstanding public debt in recent 

22 years, and to encourage further fiscal responsibility 

23 and progress toward eliminating the remaining out24 standing debt.
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1 SEC. 423. LIMIT ON PUBLIC DEBT. 

2 Section 3101 of title 31, United States Code, is 

3 amended to read as follows: 

4 ‘‘§ 3101. Public debt limit 

5 ‘‘(a) In this section, the current redemption value of 

6 an obligation issued on a discount basis and redeemable 

7 before maturity at the option of its holder is deemed to 

8 be the face amount of the obligation. 

9 ‘‘(b) The face amount of obligations issued under this 

10 chapter and the face amount of obligations whose prin11 cipal and interest are guaranteed by the United States 

12 Government (except guaranteed obligations held by the 

13 Secretary of the Treasury and intragovernmental hold14 ings) may not be more than $4,393,000,000,000 out15 standing at one time, subject to changes periodically made 

16 in that amount as provided by law. 

17 ‘‘(c) For purposes of this section, the face amount, 

18 for any month, of any obligation issued on a discount basis 

19 that is not redeemable before maturity at the option of 

20 the holder of the obligation is an amount equal to the sum 

21 of—

22 ‘‘(1) the original issue price of the obligation, 

23 plus

24 ‘‘(2) the portion of the discount on the obliga25 tion attributable to periods before the beginning of 

26 such month (as determined under the principles of 
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1 section 1272(a) of the Internal Revenue Code of 

2 1986 without regard to any exceptions contained in 

3 paragraph (2) of such section). 

4 ‘‘(d) For purposes of this section, the term 

5 ‘intragovernment holding’ is any obligation issued by the 

6 Secretary of the Treasury to any Federal trust fund or 

7 Government account, whether in respect of public money, 

8 money otherwise required to be deposited in the Treasury, 

9 or amounts appropriated.’’. 

10 Subtitle D—Risk-assumed 

11 Budgeting 

12 SEC. 431. PURPOSES. 

13 The purposes of this subtitle are to—

14 (1) budget for the long-term costs of Federal 

15 insurance programs; 

16 (2) improve congressional control of those costs; 

17 and 

18 (3) periodically report on long-term budgetary 

19 trends.

20 CHAPTER 1—BUDGETARY TREATMENT OF 

21 FEDERAL INSURANCE PROGRAMS 

22 SEC. 432. FEDERAL INSURANCE PROGRAMS. 

23 (a) IN GENERAL.—The Congressional Budget Act of 

24 1974 is amended by adding after title V the following new 

25 title: 
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1 ‘‘TITLE VI—BUDGETARY TREAT2 MENT OF FEDERAL INSUR3 ANCE PROGRAMS 

4 ‘‘SEC. 602. BUDGETARY TREATMENT. 

5 ‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 

6 year 2011, the budget of the Government pursuant to sec7 tion 1105(a) of title 31, United States Code, shall be 

8 based on the risk-assumed cost of Federal insurance pro9 grams. 

10 ‘‘(b) BUDGET ACCOUNTING.—For any Federal insur11 ance program—

12 ‘‘(1) the program account shall—

13 ‘‘(A) pay the risk-assumed cost borne by 

14 the taxpayer to the financing account, and 

15 ‘‘(B) pay actual insurance program admin16 istrative costs; 

17 ‘‘(2) the financing account shall—

18 ‘‘(A) receive premiums and other income, 

19 ‘‘(B) pay all claims for insurance and re20 ceive all recoveries, 

21 ‘‘(C) transfer to the program account on 

22 not less than an annual basis amounts nec23 essary to pay insurance program administrative 

24 costs; 
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1 ‘‘(3) a negative risk-assumed cost shall be 

2 transferred from the financing account to the pro3 gram account, and shall be transferred from the pro4 gram account to the general fund; and 

5 ‘‘(4) all payments by or receipts of the financ6 ing accounts shall be treated in the budget as a 

7 means of financing. 

8 ‘‘(c) APPROPRIATIONS REQUIRED.—(1) Notwith9 standing any other provision of law, insurance commit10 ments may be made for fiscal year 2011 and thereafter 

11 only to the extent that new budget authority to cover their 

12 risk-assumed cost is provided in advance in an appropria13 tion Act. 

14 ‘‘(2) An outstanding insurance commitment shall not 

15 be modified in a manner that increases its risk-assumed 

16 cost unless budget authority for the additional cost has 

17 been provided in advance. 

18 ‘‘(3) Paragraph (1) shall not apply to Federal insur19 ance programs that constitute entitlements. 

20 ‘‘(d) REESTIMATES.—The risk-assumed cost for a 

21 fiscal year shall be reestimated in each subsequent year. 

22 Such reestimate can equal zero. In the case of a positive 

23 reestimate, the amount of the reestimate shall be paid 

24 from the program account to the financing account. In 

25 the case of a negative reestimate, the amount of the reesti-
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1 mate shall be paid from the financing account to the pro2 gram account, and shall be transferred from the program 

3 account to the general fund. Reestimates shall be dis4 played as a distinct and separately identified subaccount 

5 in the program account. 

6 ‘‘(e) ADMINISTRATIVE EXPENSES.—All funding for 

7 an agency’s administration of a Federal insurance pro8 gram shall be displayed as a distinct and separately identi9 fied subaccount in the program account. 

10 ‘‘SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL 

11 BUDGETING FOR FEDERAL INSURANCE PRO12 GRAMS. 

13 ‘‘(a) AGENCY REQUIREMENTS.—Agencies with re14 sponsibility for Federal insurance programs shall develop 

15 models to estimate their risk-assumed cost by year 

16 through the budget horizon and shall submit those models, 

17 all relevant data, a justification for critical assumptions, 

18 and the annual projected risk-assumed costs to OMB with 

19 their budget requests each year starting with the request 

20 for fiscal year 2007. Agencies will likewise provide OMB 

21 with annual estimates of modifications, if any, and reesti22 mates of program costs. 

23 ‘‘(b) DISCLOSURE.—When the President submits a 

24 budget of the Government pursuant to section 1105(a) of 

25 title 31, United States Code, for fiscal year 2007, OMB
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1 shall publish a notice in the Federal Register advising in2 terested persons of the availability of information describ3 ing the models, data (including sources), and critical as4 sumptions (including explicit or implicit discount rate as5 sumptions) that it or other executive branch entities would 

6 use to estimate the risk-assumed cost of Federal insurance 

7 programs and giving such persons an opportunity to sub8 mit comments. At the same time, the chairman of the 

9 Committee on the Budget shall publish a notice for CBO 

10 in the Federal Register advising interested persons of the 

11 availability of information describing the models, data (in12 cluding sources), and critical assumptions (including ex13 plicit or implicit discount rate assumptions) that it would 

14 use to estimate the risk-assumed cost of Federal insurance 

15 programs and giving such interested persons an oppor16 tunity to submit comments. 

17 ‘‘(c) REVISION.—(1) After consideration of comments 

18 pursuant to subsection (b), and in consultation with the 

19 Committees on the Budget of the House of Representa20 tives and the Senate, OMB and CBO shall revise the mod21 els, data, and major assumptions they would use to esti22 mate the risk-assumed cost of Federal insurance pro23 grams. 

24 ‘‘(2) When the President submits a budget of the 

25 Government pursuant to section 1105(a) of title 31, 
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1 United States Code, for fiscal year 2008, OMB shall pub2 lish a notice in the Federal Register advising interested 

3 persons of the availability of information describing the 

4 models, data (including sources), and critical assumptions 

5 (including explicit or implicit discount rate assumptions) 

6 that it or other executive branch entities used to estimate 

7 the risk-assumed cost of Federal insurance programs. 

8 ‘‘(d) DISPLAY.—

9 ‘‘(1) IN GENERAL.—For fiscal years 2008, 

10 2009, and 2010 the budget submissions of the Presi11 dent pursuant to section 1105(a) of title 31, United 

12 States Code, and CBO’s reports on the economic 

13 and budget outlook pursuant to section 202(e)(1) 

14 and the President’s budgets, shall for display pur15 poses only, estimate the risk-assumed cost of exist16 ing or proposed Federal insurance programs. 

17 ‘‘(2) OMB.—The display in the budget submis18 sions of the President for fiscal years 2008, 2009, 

19 and 2010 shall include—

20 ‘‘(A) a presentation for each Federal insur21 ance program in budget-account level detail of 

22 estimates of risk-assumed cost; 

23 ‘‘(B) a summary table of the risk-assumed 

24 costs of Federal insurance programs; and 
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1 ‘‘(C) an alternate summary table of budget 

2 functions and aggregates using risk-assumed 

3 rather than cash-based cost estimates for Fed4 eral insurance programs. 

5 ‘‘(3) CBO.—In the second session of the 109th 

6 Congress and the 110th Congress, CBO shall in7 clude in its estimates under section 308, for display 

8 purposes only, the risk-assumed cost of existing Fed9 eral insurance programs, or legislation that CBO, in 

10 consultation with the Committees on the Budget of 

11 the House of Representatives and the Senate, deter12 mines would create a new Federal insurance pro13 gram. 

14 ‘‘(e) OMB, CBO, AND GAO EVALUATIONS.—(1) Not 

15 later than 6 months after the budget submission of the 

16 President pursuant to section 1105(a) of title 31, United 

17 States Code, for fiscal year 2010, OMB, CBO, and GAO 

18 shall each submit to the Committees on the Budget of the 

19 House of Representatives and the Senate a report that 

20 evaluates the advisability and appropriate implementation 

21 of this title.

22 ‘‘(2) Each report made pursuant to paragraph (1) 

23 shall address the following: 

24 ‘‘(A) The adequacy of risk-assumed estimation 

25 models used and alternative modeling methods. 
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1 ‘‘(B) The availability and reliability of data or 

2 information necessary to carry out this title. 

3 ‘‘(C) The appropriateness of the explicit or im4 plicit discount rate used in the various risk-assumed 

5 estimation models. 

6 ‘‘(D) The advisability of specifying a statutory 

7 discount rate (such as the Treasury rate) for use in 

8 risk-assumed estimation models. 

9 ‘‘(E) The ability of OMB, CBO, or GAO, as ap10 plicable, to secure any data or information directly 

11 from any Federal agency necessary to enable it to 

12 carry out this title. 

13 ‘‘(F) The relationship between risk-assumed ac14 crual budgeting for Federal insurance programs and 

15 the specific requirements of the Balanced Budget 

16 and Emergency Deficit Control Act of 1985. 

17 ‘‘(G) Whether Federal budgeting is improved by 

18 the inclusion of risk-assumed cost estimates for Fed19 eral insurance programs. 

20 ‘‘(H) The advisability of including each of the 

21 programs currently estimated on a risk-assumed cost 

22 basis in the Federal budget on that basis. 

23 ‘‘SEC. 604. DEFINITIONS. 

24 ‘‘For purposes of this title: 
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1 ‘‘(1) The term ‘Federal insurance program’ 

2 means a program that makes insurance commit3 ments and includes the list of such programs in4 cluded in the joint explanatory statement of man5 agers accompanying the conference report on the 

6 Comprehensive Budget Process Reform Act of 1999. 

7 ‘‘(2) The term ‘insurance commitment’ means 

8 an agreement in advance by a Federal agency to in9 demnify a nonfederal entity against specified losses. 

10 This term does not include loan guarantees as de11 fined in title V or benefit programs such as social 

12 security, medicare, and similar existing social insur13 ance programs. 

14 ‘‘(3)(A) The term ‘risk-assumed cost’ means the 

15 net present value of the estimated cash flows to and 

16 from the Government resulting from an insurance 

17 commitment or modification thereof. 

18 ‘‘(B) The cash flows associated with an insur19 ance commitment include—

20 ‘‘(i) expected claims payments inherent in 

21 the Government’s commitment; 

22 ‘‘(ii) net premiums (expected premium col23 lections received from or on behalf of the in24 sured less expected administrative expenses); 

25 ‘‘(iii) expected recoveries; and
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1 ‘‘(iv) expected changes in claims, pre2 miums, or recoveries resulting from the exercise 

3 by the insured of any option included in the in4 surance commitment. 

5 ‘‘(C) The cost of a modification is the difference 

6 between the current estimate of the net present 

7 value of the remaining cash flows under the terms 

8 of the insurance commitment, and the current esti9 mate of the net present value of the remaining cash 

10 flows under the terms of the insurance commitment 

11 as modified. 

12 ‘‘(D) The cost of a reestimate is the difference 

13 between the net present value of the amount cur14 rently required by the financing account to pay esti15 mated claims and other expenditures and the 

16 amount currently available in the financing account. 

17 The cost of a reestimate shall be accounted for in 

18 the current year in the budget of the Government 

19 pursuant to section 1105(a) of title 31, United 

20 States Code. 

21 ‘‘(E) For purposes of this definition, expected 

22 administrative expenses shall be construed as the 

23 amount estimated to be necessary for the proper ad24 ministration of the insurance program. This amount 

25 may differ from amounts actually appropriated or 
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1 otherwise made available for the administration of 

2 the program. 

3 ‘‘(4) The term ‘program account’ means the 

4 budget account for the risk-assumed cost, and for 

5 paying all costs of administering the insurance pro6 gram, and is the account from which the risk-as7 sumed cost is disbursed to the financing account. 

8 ‘‘(5) The term ‘financing account’ means the 

9 nonbudget account that is associated with each pro10 gram account which receives payments from or 

11 makes payments to the program account, receives 

12 premiums and other payments from the public, pays 

13 insurance claims, and holds balances. 

14 ‘‘(6) The term ‘modification’ means any Gov15 ernment action that alters the risk-assumed cost of 

16 an existing insurance commitment from the current 

17 estimate of cash flows. This includes any action re18 sulting from new legislation, or from the exercise of 

19 administrative discretion under existing law, that di20 rectly or indirectly alters the estimated cost of exist21 ing insurance commitments. 

22 ‘‘(7) The term ‘model’ means any actuarial, fi23 nancial, econometric, probabilistic, or other method24 ology used to estimate the expected frequency and 

25 magnitude of loss-producing events, expected pre-
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1 miums or collections from or on behalf of the in2 sured, expected recoveries, and administrative ex3 penses. 

4 ‘‘(8) The term ‘current’ has the same meaning 

5 as in section 250(c)(9) of the Balanced Budget and 

6 Emergency Deficit Control Act of 1985. 

7 ‘‘(9) The term ‘OMB’ means the Director of 

8 the Office of Management and Budget. 

9 ‘‘(10) The term ‘CBO’ means the Director of 

10 the Congressional Budget Office. 

11 ‘‘(11) The term ‘GAO’ means the Comptroller 

12 General of the United States. 

13 ‘‘SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; 

14 ACTUARIAL COST ACCOUNT. 

15 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There 

16 is authorized to be appropriated $600,000 for each of fis17 cal years 2005 through 2010 to the Director of the Office 

18 of Management and Budget and each agency responsible 

19 for administering a Federal program to carry out this 

20 title. 

21 ‘‘(b) TREASURY TRANSACTIONS WITH THE FINANC22 ING ACCOUNTS.—The Secretary of the Treasury shall bor23 row from, receive from, lend to, or pay the insurance fi24 nancing accounts such amounts as may be appropriate. 

25 The Secretary of the Treasury may prescribe forms and 
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1 denominations, maturities, and terms and conditions for 

2 the transactions described above. The authorities de3 scribed above shall not be construed to supersede or over4 ride the authority of the head of a Federal agency to ad5 minister and operate an insurance program. All the trans6 actions provided in this subsection shall be subject to the 

7 provisions of subchapter II of chapter 15 of title 31, 

8 United States Code. Cash balances of the financing ac9 counts in excess of current requirements shall be main10 tained in a form of uninvested funds, and the Secretary 

11 of the Treasury shall pay interest on these funds.

12 ‘‘(c) APPROPRIATION OF AMOUNT NECESSARY TO

13 COVER RISK-ASSUMED COST OF INSURANCE COMMIT14 MENTS AT TRANSITION DATE.—(1) A financing account 

15 is established on September 30, 2010, for each Federal 

16 insurance program. 

17 ‘‘(2) There is appropriated to each financing account 

18 the amount of the risk-assumed cost of Federal insurance 

19 commitments outstanding for that program as of the close 

20 of September 30, 2010. 

21 ‘‘(3) These financing accounts shall be used in imple22 menting the budget accounting required by this title. 

23 ‘‘SEC. 606. EFFECTIVE DATE. 

24 ‘‘(a) IN GENERAL.—This title shall take effect imme25 diately and shall expire on September 30, 2012. 
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1 ‘‘(b) SPECIAL RULE.—If this title is not reauthorized 

2 by September 30, 2012, then the accounting structure and 

3 budgetary treatment of Federal insurance programs shall 

4 revert to the accounting structure and budgetary treat5 ment in effect immediately before the date of enactment 

6 of this title.’’. 

7 (b) CONFORMING AMENDMENT.—The table of con8 tents set forth in section 1(b) of the Congressional Budget 

9 and Impoundment Control Act of 1974 is amended by in10 serting after the item relating to section 507 the following 

11 new items:

‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL INSURANCE 

PROGRAMS 

‘‘Sec. 601. Short title. 

‘‘Sec. 602. Budgetary treatment. 

‘‘Sec. 603. Timetable for implementation of accrual budgeting for Federal insurance programs. 

‘‘Sec. 604. Definitions. 

‘‘Sec. 605. Authorizations to enter into contracts; actuarial cost account. 

‘‘Sec. 606. Effective date.’’.

12 CHAPTER 2—REPORTS ON LONG-TERM 

13 BUDGETARY TRENDS 

14 SEC. 441. REPORTS ON LONG-TERM BUDGETARY TRENDS. 

15 (a) THE PRESIDENT’S BUDGET.—Section 1105(a) of 

16 title 31, United States Code (as amended by section 

17 152(e)), is further amended by adding at the end the fol18 lowing new paragraph: 

19 ‘‘(37) an analysis based upon current law and 

20 an analysis based upon the policy assumptions un21 derlying the budget submission for every fifth year
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1 of the period of 75 fiscal years beginning with such 

2 fiscal year, of the estimated levels of total new budg3 et authority and total budget outlays, estimated rev4 enues, estimated surpluses and deficits, and, for so5 cial security, medicare, medicaid, and all other direct 

6 spending, estimated levels of total new budget au7 thority and total budget outlays; and a specification 

8 of its underlying assumptions and a sensitivity anal9 ysis of factors that have a significant effect on the 

10 projections made in each analysis; and a comparison 

11 of the effects of each of the two analyses on the 

12 economy, including such factors as inflation, foreign 

13 investment, interest rates, and economic growth.’’. 

14 (b) CBO REPORTS.—Section 202(e)(1) of the Con15 gressional Budget Act of 1974 is amended by adding at 

16 the end the following new sentences: ‘‘Such report shall 

17 also include an analysis based upon current law for every 

18 fifth year of the period of 75 fiscal years beginning with 

19 such fiscal year, of the estimated levels of total new budget 

20 authority and total budget outlays, estimated revenues, es21 timated surpluses and deficits, and, for social security, 

22 medicare, medicaid, and all other direct spending, esti23 mated levels of total new budget authority and total budg24 et outlays. The report described in the preceding sentence 

25 shall also specify its underlying assumptions and set forth 
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1 a sensitivity analysis of factors that have a significant ef2 fect on the projections made in the report.’’. 

3 TITLE V—MAINTAINING A COM4 MITMENT TO THE FAMILY 

5 BUDGET 

6 Subtitle A—Further Enforcement 

7 Amendments 

8 SEC. 501. SUPER-MAJORITY POINTS OF ORDER. 

9 (a) Section 904 of the Congressional Budget Act of 

10 1974 is amended as follows: 

11 (1) In subsection 904(c)(1), insert ‘‘312(g), (h), 

12 (i), and (j),’’ before ‘‘313,’’, and insert ‘‘316, 318,’’ 

13 before ‘‘904(c),’’. 

14 (2) In subsection (c) strike ‘‘three-fifths’’ each 

15 place it appears and insert ‘‘two-thirds’’. 

16 (3)(A) In subsection (d)(2), insert ‘‘312(g), (h), 

17 (i), and (j),’’ before ‘‘313,’’, and insert ‘‘316, 318,’’ 

18 before ‘‘904(c),’’. 

19 (B) In subsection (d), strike ‘‘three-fifths’’ each 

20 place it appears and insert ‘‘two-thirds’’. 

21 (4)(A) In subsections (c)(2) and (d)(3), strike 

22 ‘‘311(a),’’. 

23 (B) In subsections (c)(1) and (d)(2) insert 

24 ‘‘311(a),’’ after ‘‘310(d)(2),’’. 
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1 (5) In subsection (e), strike ‘‘2002’’ and insert 

2 ‘‘2010’’.

3 SEC. 502. BUDGET RESOLUTION ENFORCEMENT POINT OF 

4 ORDER. 

5 (a) ENTITLEMENT POINT OF ORDER.—Section 312 

6 of the Congressional Budget Act of 1974 (as amended by 

7 section 221(d)) is further amended by adding at the end 

8 the following new subsection: 

9 ‘‘(j) BUDGET RESOLUTION ENFORCEMENT POINT OF

10 ORDER.—It shall not be in order in the House of Rep11 resentatives or the Senate to consider any joint resolution 

12 on the budget for a fiscal year, or amendment thereto or 

13 conference report thereon, that—

14 ‘‘(1) is not consistent with the discretionary 

15 spending limits set forth in section 251(b) of the 

16 Balanced Budget and Emergency Deficit Control 

17 Act of 1985; or 

18 ‘‘(2) provides for an increase in the aggregate 

19 level of direct spending for the fiscal year of the res20 olution or any ensuing fiscal year included in such 

21 resolution.’’. 

22 SEC. 503. POINT OF ORDER WAIVER PROTECTION. 

23 Clause 6(c) of rule XIII of the Rules of the House 

24 of Representatives is amended by striking the period at 
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1 the end of subparagraph (2) and inserting ‘‘; or’’ and by 

2 adding at the end the following new subparagraph: 

3 ‘‘(3) a rule or order that would waive the provi4 sions of any section of the Congressional Budget Act 

5 of 1974 referred to in section 904(c)(1) of such Act 

6 or of section 302 of the Family Budget Protection 

7 Act of 2004.’’. 

8 Subtitle B—The Byrd Rule 

9 SEC. 511. LIMITATION ON BYRD RULE. 

10 (a) PROTECTION OF CONFERENCE REPORTS.—Sec11 tion 313 of the Congressional Budget Act of 1974 is 

12 amended—

13 (1) in subsection (b)(1), by striking subpara14 graph (E) through the semicolon at the end thereof 

15 and by redesignating subparagraph (F) as subpara16 graph (E); 

17 (2) in subsection (c), by striking ‘‘and again 

18 upon the submission of a conference report on such 

19 a reconciliation bill or resolution,’’; 

20 (3) by striking subsection (d); 

21 (4) by redesignating subsection (e) as sub22 section (d); and 

23 (5) in subsection (e), as redesignated—
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1 (A) by striking ‘‘, motion, or conference re2 port’’ the first place it appears and inserting ‘‘, 

3 or motion’’; and 

4 (B) by striking ‘‘, motion, or conference re5 port’’ the second and third places it appears 

6 and inserting ‘‘or motion’’. 

7 (b) CONFORMING AMENDMENT.—The first sentence 

8 of section 312(e) of the Congressional Budget Act of 1974 

9 is amended by inserting ‘‘, except for section 313,’’ after 

10 ‘‘Act’’.

11 Subtitle C—Treatment of Extra12 neous Appropriations in Omni13 bus Appropriation Measures 

14 SEC. 521. TREATMENT OF EXTRANEOUS APPROPRIATIONS. 

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

16 Budget Act of 1974 (as amended by section 127(a)) is 

17 further amended by adding at the end the following new 

18 section: 

19 ‘‘TREATMENT OF EXTRANEOUS APPROPRIATIONS IN

20 OMNIBUS APPROPRIATION MEASURES

21 ‘‘SEC. 318. (a) POINT OF ORDER.—It shall not be 

22 in order in the House of Representatives or the Senate 

23 to consider an omnibus appropriation measure, or any 

24 amendment thereto or conference report thereon, that ap25 propriates funds for any program, project, or activity that 
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1 is not within the subject-matter jurisdiction of any sub2 committee of the Committee on Appropriations of the 

3 House of Representatives or Senate, as applicable, with 

4 jurisdiction over any regular appropriation bill contained 

5 in such measure. 

6 ‘‘(b) DEFINITIONS.—As used in this section: 

7 ‘‘(1) The term ‘omnibus appropriation measure’ 

8 means any bill or joint resolution making continuing 

9 appropriations for a fiscal year and that is com10 prised of more than one regular appropriation bills. 

11 ‘‘(2) The term ‘regular appropriation bill’ 

12 means any annual appropriation bill making appro13 priations, otherwise making funds available, or 

14 granting authority, for any of the following cat15 egories of projects and activities: 

16 ‘‘(A) Agriculture, rural development, Food 

17 and Drug Administration, and related agencies 

18 programs. 

19 ‘‘(B) The Departments of Commerce, Jus20 tice, and State, the Judiciary, and related agen21 cies. 

22 ‘‘(C) The Department of Defense. 

23 ‘‘(D) The government of the District of 

24 Columbia and other activities chargeable in 
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1 whole or in part against the revenues of the 

2 District. 

3 ‘‘(E) Energy and water development. 

4 ‘‘(F) Foreign operations, export financing, 

5 and related programs. 

6 ‘‘(G) The Department of Homeland Secu7 rity. 

8 ‘‘(H) The Department of the Interior and 

9 related agencies. 

10 ‘‘(I) The Departments of Labor, Health 

11 and Human Services, and Education, and re12 lated agencies. 

13 ‘‘(J) The Legislative Branch. 

14 ‘‘(K) Military construction, family housing, 

15 and base realignment and closure for the De16 partment of Defense. 

17 ‘‘(L) The Departments of Transportation 

18 and Treasury, and independent agencies. 

19 ‘‘(M) The Departments of Veterans Affairs 

20 and Housing and Urban Development, and sun21 dry independent agencies, boards, commissions, 

22 corporations, and offices.’’. 

23 (b) CONFORMING AMENDMENT.—The table of con24 tents set forth in section 1(b) of the Congressional Budget 

25 and Impoundment Control Act of 1974 is amended by in-
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1 serting after the item relating to section 317 the following 

2 new item:

‘‘Sec. 318. Treatment of extraneous appropriations in omnibus appropriation 

measures.’’.

Æ