I 

118TH CONGRESS 

1ST SESSION H. R. 260 

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

budget through reductions of discretionary and mandatory spending, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 10, 2023 

Mr. GOOD of Virginia (for himself, Mr. PERRY, and Mr. MOORE of Alabama) 

introduced the following bill; which was referred to the Committee on the 

Budget, and in addition to the Committee on Rules, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To prevent a fiscal crisis by enacting legislation to balance 

the Federal budget through reductions of discretionary 

and mandatory spending, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Nickel Plan Act’’. 


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1 SEC. 2. ESTABLISHMENT AND ENFORCEMENT OF SPEND2 ING CAPS. 

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

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

5 seq.) is amended by inserting after section 253 the fol6 lowing: 

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

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

9 cap’ means: 

10 ‘‘(1) FISCAL YEAR 2024.—For fiscal year 2024, 

11 total outlays (less net interest payments) shall be 

12 not more than $5,952,871,000,000, less 5 percent. 

13 ‘‘(2) FISCAL YEAR 2025.—For fiscal year 2025, 

14 total outlays (less net interest payments) shall be 

15 not more than the amount computed under para16 graph (1), less 5 percent. 

17 ‘‘(3) FISCAL YEAR 2026.—For fiscal year 2026, 

18 total outlays (less net interest payments) shall be 

19 not more than the amount computed under para20 graph (2), less 5 percent. 

21 ‘‘(4) FISCAL YEAR 2027.—For fiscal year 2027, 

22 total outlays (less net interest payments) shall be 

23 not more than the amount computed under para24 graph (3), less 5 percent. 

25 ‘‘(5) FISCAL YEAR 2028 AND SUBSEQUENT FIS26 CAL YEARS.— 


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1 ‘‘(A) IN GENERAL.—For fiscal year 2028 

2 and each fiscal year thereafter, total outlays 

3 (including net interest payments) shall be not 

4 more than 17.5 percent of the gross domestic 

5 product for that fiscal year, as estimated by the 

6 Office of Management and Budget prior to 

7 March of the previous fiscal year. 

8 ‘‘(B) LIMITATION.—Notwithstanding sub9 paragraph (A), for any fiscal year beginning 

10 with fiscal year 2029, total projected outlays 

11 may not be less than total projected outlays for 

12 the preceding fiscal year. 

13 ‘‘(b) SEQUESTRATION.— 

14 ‘‘(1) IN GENERAL.— 

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

16 45 calendar days after the beginning of a fiscal 

17 year, the Office of Management and Budget 

18 shall prepare and the President shall order a 

19 sequestration to eliminate any excess outlay 

20 amount. 

21 ‘‘(B) DEFINITIONS.— 

22 ‘‘(i) FISCAL YEARS 2024 THROUGH

23 2027.—For each of fiscal years 2024 

24 through 2027 and for purposes of this sub25 section, the term ‘excess outlay amount’ 


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1 means the amount by which total projected 

2 Federal outlays (less net interest pay3 ments) for a fiscal year exceeds the outlay 

4 cap for that fiscal year. 

5 ‘‘(ii) FISCAL YEAR 2028 AND SUBSE6 QUENT FISCAL YEARS.—For fiscal year 

7 2028 and each fiscal year thereafter and 

8 for purposes of this subsection, the term 

9 ‘excess outlay amount’ means the amount 

10 by which total projected Federal outlays 

11 for a fiscal year exceeds the outlay cap for 

12 that fiscal year. 

13 ‘‘(2) SEQUESTRATION.— 

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

15 15 of each year, the Congressional Budget Of16 fice shall issue a sequestration preview report 

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

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

19 20 of each year, the Office of Management and 

20 Budget shall issue a sequestration preview re21 port as described in section 254(c)(4). 

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

23 each year, the Office of Management and Budg24 et shall issue a final sequestration report as de25 scribed in section 254(f)(3), which shall be acVerDate Sep 11 2014 05:34 Jan 20, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H260.IH H260

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1 companied by a Presidential order detailing 

2 spending reductions equal to the excess outlay 

3 amount. 

4 ‘‘(D) PROCESS.—The reductions shall gen5 erally follow the process set forth in sections 

6 253 and 254, except as provided in this section. 

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

8 20 report by the Office of Management and Budget 

9 projects a sequestration, the Committee on the 

10 Budget of the Senate and the Committee on the 

11 Budget of the House of Representatives may report 

12 a resolution directing committees of their House to 

13 change the existing law to achieve the spending re14 ductions outlined in the August 20 report necessary 

15 to meet the outlay limits. 

16 ‘‘(c) NO EXEMPT PROGRAMS.—Section 255 and sec17 tion 256 shall not apply to this section or any sequestra18 tion order issued under this section. 

19 ‘‘(d) LOOK BACK.—If, after October 31, a bill result20 ing in outlays for the fiscal year in progress is enacted 

21 that causes excess outlays, the excess outlay amount for 

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

23 amounts of that breach.’’. 

24 (b) CONFORMING AMENDMENTS TO BBEDCA.— 


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1 (1) SEQUESTRATION PREVIEW REPORTS.—Sec2 tion 254(c)(4) of the Balanced Budget and Emer3 gency Deficit Control Act of 1985 (2 U.S.C. 

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

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

6 The preview reports shall set forth for the budget 

7 year estimates for the following: 

8 ‘‘(A)(i) For each of budget years 2023 

9 through 2027, total projected outlays (less net 

10 interest payments), less five percent. 

11 ‘‘(ii) For budget year 2028 and each sub12 sequent budget year, the estimated gross do13 mestic product for that budget year. 

14 ‘‘(B) The amount of reductions required 

15 under section 253A. 

16 ‘‘(C) The sequestration percentage nec17 essary to achieve the required reduction under 

18 section 253A.’’. 

19 (2) FINAL SEQUESTRATION REPORTS.—Section 

20 254(f)(3) of the Balanced Budget and Emergency 

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

22 amended to read as follows: 

23 ‘‘(3) OUTLAY CAPS SEQUESTRATION RE24 PORTS.—The final reports shall contain all the infor25 mation required in the outlay cap sequestration preVerDate Sep 11 2014 05:34 Jan 20, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H260.IH H260

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1 view reports. In addition, these reports shall contain, 

2 for the budget year, for each account to be seques3 tered, estimates of the baseline level of sequestrable 

4 budgetary resources and resulting outlays and the 

5 amount of budgetary sources to be sequestered and 

6 result in outlay reductions. The reports shall also 

7 contain estimates of the effects on outlays on the se8 questration of each outyear for direct spending pro9 grams.’’. 

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

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

12 by adding after section 315 the following: 

13 ‘‘SEC. 316. ENFORCEMENT PROCEDURES. 

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

15 House of Representatives or the Senate to consider any 

16 bill, joint resolution, amendment, amendment between the 

17 Houses, or conference report that includes any provision 

18 that would cause the most recently reported, current out19 lay cap set forth in section 253A of the Balanced Budget 

20 and Emergency Deficit Control Act of 1985 to be 

21 breached or increased. 

22 ‘‘(b) WAIVER OR SUSPENSION.— 

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

24 section may be waived or suspended in the Senate 


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

2 Members, duly chosen and sworn. 

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

4 section may be waived or suspended in the House of 

5 Representatives only by a rule or order proposing 

6 only to waive such provisions by an affirmative vote 

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

8 sworn. 

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

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

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

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

13 for the Speaker to entertain a motion to suspend the appli14 cation of this section under clause 1 of rule XV.’’. 

15 SEC. 3. CONFORMING AMENDMENTS. 

16 The table of contents set forth in— 

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

18 and Impoundment Control Act of 1974 is amended 

19 by inserting after the item relating to section 315 

20 the following new item: 

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

21 and 

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

23 Emergency Deficit Control Act of 1985 is amended 


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1 by inserting after the item relating to section 253 

2 the following new item: 

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

3 SEC. 4. EFFECTIVE DATE. 

4 This Act and the amendments made by this Act shall 

5 apply to fiscal year 2023 and each fiscal year thereafter, 

6 including any reports and calculations required for imple7 mentation in fiscal year 2023. 

Æ 


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