II 

111TH CONGRESS 

2D SESSION S. 3096 

To prevent an economic disaster by providing budget reform. 

IN THE SENATE OF THE UNITED STATES 

MARCH 10, 2010 

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

to the Committee on the Budget 

A BILL 

To prevent an economic disaster by providing budget reform. 

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 ‘‘Economic Disaster 

5 Prevention Act of 2010’’. 

6 TITLE I—SPENDING LIMITS AND 

7 CONTROL 

8 Subtitle A—Spending Limits 

9 SEC. 101. NON-DEFENSE DISCRETIONARY SPENDING LIM10 ITS. 

11 (a) NON-DEFENSE DISCRETIONARY SPENDING LIM12 ITS.—Section 251 of the Balanced Budget and Emergency 


pwalker on DSK8KYBLC1PROD with BILLS
2 

•S 3096 IS

1 Deficit Control of Act of 1985 is amended to read as fol2 lows: 

3 ‘‘(a) NON-DEFENSE DISCRETIONARY SPENDING

4 LIMITS.—For each fiscal year set forth in this subsection, 

5 the total level of discretionary spending for non-defense 

6 discretionary spending programs, projects, and activities 

7 shall not exceed the following levels: 

8 ‘‘(1) For fiscal year 2011, $552,000,000,000 in 

9 new budget authority. 

10 ‘‘(2) For fiscal year 2012, $559,000,000,000 in 

11 new budget authority. 

12 ‘‘(3) For fiscal year 2013, $567,000,000,000 in 

13 new budget authority. 

14 ‘‘(4) For fiscal year 2014, $576,000,000,000 in 

15 new budget authority. 

16 ‘‘(5) For fiscal year 2015, $588,000,000,000 in 

17 new budget authority. 

18 ‘‘(6) For fiscal year 2016, $601,000,000,000 in 

19 new budget authority. 

20 ‘‘(7) For fiscal year 2017, $615,000,000,000 in 

21 new budget authority. 

22 ‘‘(8) For fiscal year 2018, $628,000,000,000 in 

23 new budget authority. 

24 ‘‘(9) For fiscal year 2019, $642,000,000,000 in 

25 new budget authority. 


pwalker on DSK8KYBLC1PROD with BILLS
3 

•S 3096 IS

1 ‘‘(10) For fiscal year 2020, $657,000,000,000 

2 in new budget authority. 

3 ‘‘(b) SEQUENCE OF SEQUESTRATION REPORTS.— 

4 Within 15 calendar days after Congress adjourns to end 

5 a session and on the same day as a spending reduction 

6 ordered under section 252A, but prior to any spending re7 duction required by section 252A, OMB shall issue a final 

8 spending reduction report to reduce an excess spending 

9 amount. 

10 ‘‘(c) SPENDING REDUCTION ORDER.—A spending re11 duction ordered pursuant to subsection (b) shall be imple12 mented using the procedures set forth in section 256.’’. 

13 (b) CONFORMING AMENDMENT.—The item relating 

14 to section 251 in the table of contents set forth in 250(c) 

15 of the Balanced Budget and Emergency Deficit Control 

16 Act of 1985 is amended to read as follows: 

‘‘Sec. 251. Non-defense discretionary spending limits.’’. 

17 SEC. 102. DIRECT SPENDING LIMITS. 

18 (a) CONTROL OF DIRECT SPENDING.—The Balanced 

19 Budget and Emergency Deficit Control Act of 1985 is 

20 amended by adding after section 252 the following new 

21 section: 

22 ‘‘SEC. 252A. DIRECT SPENDING LIMITS. 

23 ‘‘(a) DIRECT SPENDING LIMITS.—For fiscal year 

24 2011 and each ensuing fiscal year through fiscal year 

25 2020, the total level of direct spending for all direct spendVerDate Nov 24 2008 16:45 Mar 11, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3096.IS S3096

pwalker on DSK8KYBLC1PROD with BILLS
4 

•S 3096 IS

1 ing programs, projects, and activities for any such fiscal 

2 year shall not exceed the total level of spending for all 

3 such programs, projects, and activities for the previous fis4 cal year after the direct spending for each such program, 

5 project, or activity is increased by the calculation made 

6 pursuant to section 257. 

7 ‘‘(b) SEQUENCE OF SEQUESTRATION REPORTS.— 

8 Within 15 calendar days after Congress adjourns to end 

9 a session and on the same day as a spending reduction 

10 ordered under sections 251, but after any spending reduc11 tion required by section 251, OMB shall issue a final 

12 spending reduction report to reduce an excess spending 

13 amount (if any remains). 

14 ‘‘(c) SPENDING REDUCTION ORDER.—A spending re15 duction ordered pursuant to subsection (b) shall be imple16 mented using the procedures set forth in section 256.’’. 

17 (b) CONFORMING AMENDMENT.—The table of con18 tents set forth in 250(c) of the Balanced Budget and 

19 Emergency Deficit Control Act of 1985 is amended by 

20 amending the item relating to section 256 to read as fol21 lows: 

‘‘Sec. 252A. Direct spending limits.’’. 

22 Subtitle B—Reports and Orders 

23 SEC. 111. REPORTS AND ORDERS. 

24 Section 254 of the Balanced Budget and Emergency 

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


pwalker on DSK8KYBLC1PROD with BILLS
5 

•S 3096 IS

1 ‘‘SEC. 254. REPORTS AND ORDERS. 

2 ‘‘(a) TIMETABLE.— 

‘‘Date: Action to be completed: 

5 days before the President’s 

budget submission 

CBO sequestration preview report. 

President’s budget submission OMB sequestration preview report. 

August 10 CBO sequestration update report. 

August 20 OMB sequestration update report. 

10 days after end of session CBO sequestration final report. 

15 days after end of session OMB sequestration final report: Presidential order. 

3 ‘‘(b) SUBMISSION AND AVAILABILITY OF REPORTS.— 

4 Each report required by this section shall be submitted 

5 to the Budget Committees of the House of Representatives 

6 and the Senate. On the following day a notice of the report 

7 shall be printed in the Federal Register. 

8 ‘‘(c) SEQUESTRATION PREVIEW REPORTS.— 

9 ‘‘(1) REPORTING REQUIREMENT.—On the dates 

10 specified in subsection (a), OMB and CBO shall 

11 issue a preview report regarding non-defense discre12 tionary sequestration based on laws enacted through 

13 those dates. 

14 ‘‘(2) NON-DEFENSE DISCRETIONARY SPENDING

15 LIMIT SEQUESTRATION REPORT.—The preview re16 ports shall set forth estimates for the current year 

17 and each subsequent year through 2019 of the appli18 cable non-defense discretionary spending limits and 

19 an explanation of any adjustments in such limits 

20 under section 251. 


pwalker on DSK8KYBLC1PROD with BILLS
6 

•S 3096 IS

1 ‘‘(3) DIRECT SPENDING LIMIT SEQUESTRATION

2 REPORT.—The preview reports shall set forth, for 

3 the current year and the budget year, estimates for 

4 each of the following: 

5 ‘‘(A) The amount of total direct spending, 

6 if any, calculated under subsection 252A(b). 

7 ‘‘(B) A list identifying each law enacted 

8 and sequestration implemented after the date of 

9 enactment of this section included in the cal10 culation of the amount of deficit increase or de11 crease and specifying the budgetary effect of 

12 each such law. 

13 ‘‘(C) The sequestration percentage or per14 centages necessary to eliminate a deficit in15 crease under section 252A(c). 

16 ‘‘(4) EXPLANATION OF DIFFERENCES.—The 

17 OMB reports shall explain the differences between 

18 OMB and CBO estimates for each item set forth in 

19 this subsection. 

20 ‘‘(d) SEQUESTRATION UPDATE REPORTS.—On the 

21 dates specified in subsection (a), OMB and CBO shall 

22 issue a sequestration update report, reflecting laws en23 acted through those dates, containing all of the informa24 tion required in the sequestration preview reports. 

25 ‘‘(e) FINAL SEQUESTRATION REPORTS.— 


pwalker on DSK8KYBLC1PROD with BILLS
7 

•S 3096 IS

1 ‘‘(1) REPORTING REQUIREMENT.—On the dates 

2 specified in subsection (a), OMB and CBO shall 

3 issue a final sequestration report, updated to reflect 

4 laws enacted through those dates. 

5 ‘‘(2) NON-DEFENSE DISCRETIONARY SPENDING

6 SEQUESTRATION REPORTS.—The final reports shall 

7 set forth estimates for each of the following: 

8 ‘‘(A) For the current year and each subse9 quent year the applicable non-defense discre10 tionary spending limits for each category and 

11 an explanation of any adjustments in such lim12 its under section 251. 

13 ‘‘(B) For the current year and the budget 

14 year the estimated new budget authority and 

15 outlays for each category and the breach, if 

16 any, in each category. 

17 ‘‘(C) For each category for which a seques18 tration is required, the sequestration percent19 ages necessary to achieve the required reduc20 tion. 

21 ‘‘(D) For the budget year, for each ac22 count to be sequestered, estimates of the base23 line level of budgetary resources subject to se24 questration and resulting outlays and the 


pwalker on DSK8KYBLC1PROD with BILLS
8 

•S 3096 IS

1 amount of budgetary resources to be seques2 tered and resulting outlay reductions. 

3 ‘‘(3) DIRECT SPENDING REPORT.—The final re4 ports shall contain all the information required in 

5 the direct spending sequestration preview report. In 

6 addition, the report shall contain, for the budget 

7 year, for each account to be sequestered, estimates 

8 of the baseline level of sequestrable budgetary re9 sources and resulting outlays and the amount of 

10 budgetary resources to be sequestered and resulting 

11 outlay reductions. The report shall also contain esti12 mates of the effects on outlays of the sequestration 

13 in each outyear for direct spending programs. 

14 ‘‘(4) EXPLANATION OF DIFFERENCES.—The 

15 OMB report shall explain any differences between 

16 OMB and CBO estimates of the amount of any net 

17 direct spending change calculated under section 

18 252A, any excess deficit, any breach, and any re19 quired sequestration percentage. The OMB report 

20 shall also explain differences in the amount of 

21 sequesterable resources for any budget account to be 

22 reduced if such difference is greater than 

23 $5,000,000. 

24 ‘‘(5) PRESIDENTIAL ORDER.—On the date spec25 ified in subsection (a), if in its final sequestration 


pwalker on DSK8KYBLC1PROD with BILLS
9 

•S 3096 IS

1 report OMB estimates that any sequestration is re2 quired, the President shall issue an order fully im3 plementing without change all sequestrations re4 quired by the OMB calculations set forth in that re5 port. This order shall be effective on issuance. 

6 ‘‘(f) WITHIN-SESSION SEQUESTRATION REPORTS.— 

7 If an appropriation for a fiscal year in progress is enacted 

8 (after Congress adjourns to end the session for that budg9 et year and before July 1 of that fiscal year) that causes 

10 a breach, 10 days later CBO shall issue a report con11 taining the information required in subsection (e)(2). Fif12 teen days after enactment, OMB shall issue a report con13 taining the information required in subsections (e)(2) and 

14 (e)(4). On the same day as the OMB report, the President 

15 shall issue an order fully implementing without change all 

16 sequestrations required by the OMB calculations set forth 

17 in that report. This order shall be effective on issuance. 

18 ‘‘(g) GAO COMPLIANCE REPORT.—Upon request of 

19 the Committee on the Budget of the House of Representa20 tives or the Senate, the Comptroller General shall submit 

21 to Congress and the President a report on— 

22 ‘‘(1) the extent to which each order issued by 

23 the President under this section complies with all of 

24 the requirements contained in this section, either 

25 certifying that the order fully and accurately comVerDate Nov 24 2008 16:45 Mar 11, 2010 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3096.IS S3096

pwalker on DSK8KYBLC1PROD with BILLS
10 

•S 3096 IS

1 plies with such requirements or indicating the re2 spects in which it does not; and 

3 ‘‘(2) the extent to which each report issued by 

4 OMB or CBO under this section complies with all of 

5 the requirements contained in this section, either 

6 certifying that the report fully and accurately com7 plies with such requirements or indicating the re8 spects in which it does not. 

9 ‘‘(h) LOW-GROWTH REPORT.—At any time, CBO 

10 shall notify Congress if— 

11 ‘‘(1) during the period consisting of the quarter 

12 during which such notification is given, the quarter 

13 preceding such notification, and the 4 quarters fol14 lowing such notification, CBO or OMB has deter15 mined that real economic growth is projected or esti16 mated to be less than zero with respect to each of 

17 any 2 consecutive quarters within such period; or 

18 ‘‘(2) the most recent of the Department of 

19 Commerce’s advance preliminary or final reports of 

20 actual real economic growth indicate that the rate of 

21 real economic growth for each of the most recently 

22 reported quarter and the immediately preceding 

23 quarter is less than one percent. 

24 ‘‘(i) ECONOMIC AND TECHNICAL ASSUMPTIONS.—In 

25 all reports required by this section, OMB shall use the 


pwalker on DSK8KYBLC1PROD with BILLS
11 

•S 3096 IS

1 same economic and technical assumptions as used in the 

2 most recent budget submitted by the President under sec3 tion 1105(a) of title 31, United States Code.’’. 

4 SEC. 112. SPENDING LIMITS ENFORCEMENT. 

5 (a) CONFORMING AMENDMENTS TO SECTION 312.— 

6 Section 312 of the Congressional Budget Act of 1974 is 

7 amended— 

8 (1) by striking subsection (a) and inserting the 

9 following: 

10 ‘‘(a) BUDGET COMMITTEE DETERMINATIONS.—For 

11 purposes of this title, the levels of new budget authority, 

12 outlays, direct spending, deficits, revenues, and debt, or 

13 the increases or decreases of such levels for purpose of 

14 section 303, shall be determined on the basis of estimates 

15 made by the Committee on the Budget of the House of 

16 Representatives or the Senate, as applicable.’’; and 

17 (2) by striking subsections (b) and (c) and re18 designating subsections (d), (e), and (f) as (h), (i), 

19 and (j). 

20 (b) ENFORCEMENT AMENDMENTS TO SECTION

21 312.—Section 312 of Congressional Budget Act of 1974 

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

23 subsections after subsection (a): 

24 ‘‘(b) NON-DEFENSE DISCRETIONARY SPENDING

25 LIMIT POINT OF ORDER.—It shall not be in order in the 


pwalker on DSK8KYBLC1PROD with BILLS
12 

•S 3096 IS

1 House of Representatives or the Senate to consider any 

2 bill, joint resolution, amendment, concurrent resolution, or 

3 conference report that— 

4 ‘‘(1) causes the non-defense discretionary 

5 spending limits for the budget year to be breached; 

6 ‘‘(2) increases the non-defense discretionary 

7 spending limits for the budget year or any ensuing 

8 fiscal year; or 

9 ‘‘(3) includes any provision that has the effect 

10 of modifying the application of section 251 of the 

11 Balanced Budget and Emergency Deficit Control 

12 Act of 1985. 

13 ‘‘(c) DIRECT SPENDING LIMIT POINT OF ORDER.— 

14 It shall not be in order in the House of Representatives 

15 or the Senate to consider any bill, joint resolution, amend16 ment, concurrent resolution, or conference report that— 

17 ‘‘(1) causes the direct spending limits for the 

18 budget year to be breached; or 

19 ‘‘(2) increases aggregate level of direct spending 

20 for any ensuing fiscal year. 

21 ‘‘(d) SEQUESTRATION APPLICATION.—It shall not be 

22 in order in the House of Representatives or the Senate 

23 to consider any bill, joint resolution, amendment, concur24 rent resolution, or conference report that— 


pwalker on DSK8KYBLC1PROD with BILLS
13 

•S 3096 IS

1 ‘‘(1) includes any provision that has the effect 

2 of modifying the application of section 256 of the 

3 Balanced Budget and Emergency Deficit Control 

4 Act of 1985 to any program subject to sequestration 

5 or exempt from sequestration; and 

6 ‘‘(2) includes any provision that has the effect 

7 of modifying the application of section 251 and 

8 252A to any program subject to sequestration or ex9 empt from sequestration. 

10 ‘‘(e) WAIVER OR SUSPENSION.— 

11 ‘‘(1) SENATE.—The provisions of this section 

12 may be waived or suspended in the Senate only by 

13 the affirmative vote of three-fifths of the Members, 

14 duly chosen and sworn. 

15 ‘‘(2) HOUSE.—The provisions of this section 

16 may be waived or suspended in the House of Rep17 resentatives: 

18 ‘‘(A) Only by a rule or order proposing 

19 only to waive such provisions by an affirmative 

20 vote of two-thirds of the Members, duly chosen 

21 and sworn. 

22 ‘‘(B) It shall not be in order to consider a 

23 rule or order that waives the application of sub24 paragraph (A). 


pwalker on DSK8KYBLC1PROD with BILLS
14 

•S 3096 IS

1 ‘‘(C) It shall not be in order for the Speak2 er to entertain a motion to suspend the applica3 tion of this section under clause 1 of rule XV 

4 of the Rules of the House of Representatives.’’. 

5 SEC. 113. SPENDING REDUCTION ORDERS. 

6 (a) IN GENERAL.—Section 256 of the Balanced 

7 Budget and Emergency Deficit Control Act of 1985 is 

8 amended to read as follows: 

9 ‘‘SEC. 256. SPENDING REDUCTION ORDER. 

10 ‘‘(a) APPLICATION.—A spending reduction order 

11 issued pursuant to this part shall apply to eliminate 

12 breaches of the limits set forth in sections 251 (non-de13 fense discretionary spending limits) and 252A (direct 

14 spending limits). 

15 ‘‘(b) WAIVER OR SUSPENSION.— 

16 ‘‘(1) SENATE.—In the Senate, the provisions of 

17 this section may be waived or suspended in the Sen18 ate only by the affirmative vote of two-thirds of the 

19 Members, duly chosen and sworn. 

20 ‘‘(2) HOUSE.—In the House: 

21 ‘‘(A) The provisions of this section may be 

22 waived or suspended in the House of Represent23 atives only by a rule or order proposing only to 

24 waive such provisions by an affirmative vote of 


pwalker on DSK8KYBLC1PROD with BILLS
15 

•S 3096 IS

1 two-thirds of the Members, duly chosen and 

2 sworn. 

3 ‘‘(B) It shall not be in order to consider a 

4 rule or order that waives the application of 

5 paragraph (1). 

6 ‘‘(C) It shall not be in order for the Speak7 er to entertain a motion to suspend the applica8 tion of this section under clause 1 of rule XV 

9 of the Rules of the House of Representatives. 

10 ‘‘(c) GENERAL RULES.— 

11 ‘‘(1) CALCULATION OF SPENDING REDUCTION

12 PERCENTAGE.—OMB shall include in its final 

13 spending sequestration report a requirement that 

14 each nonexempt spending account shall be reduced 

15 by an amount of budget authority calculated by mul16 tiplying the baseline level of budgetary resources in 

17 that account at that time by the uniform percentage 

18 necessary to reduce outlays sufficient to eliminate an 

19 excess spending amount. 

20 ‘‘(2) EXEMPTIONS.—The following shall be ex21 empt from reduction under any order issued under 

22 this section: 

23 ‘‘(A) Payments for net interest. 

24 ‘‘(B) Benefits payable under the old-age, 

25 survivors, and disability insurance program esVerDate Nov 24 2008 16:45 Mar 11, 2010 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S3096.IS S3096

pwalker on DSK8KYBLC1PROD with BILLS
16 

•S 3096 IS

1 tablished under title II of the Social Security 

2 Act if— 

3 ‘‘(i) OASDI Trust Funds are actuari4 ally solvent in the 75-year period utilized 

5 in the most recent annual report of the 

6 Board of Trustees provided pursuant to 

7 section 201(C)(2) of the Social Security 

8 Act; and 

9 ‘‘(ii) OASDI Trust Funds have not 

10 run a cash deficit in the fiscal year prior 

11 to the transmittal of the most recent Se12 questration Preview Report. 

13 ‘‘(C) Benefits provided to veterans defined 

14 as direct spending payable by the Department 

15 of Veterans affairs. 

16 ‘‘(D) Obligated balances of budget author17 ity carried over from prior fiscal years. 

18 ‘‘(E) Any obligations of the Federal Gov19 ernment required to be paid under the United 

20 States Constitution or legally contractual obli21 gations. 

22 ‘‘(F) Provisions of spending legislation des23 ignated by the President, and so designated in 

24 statute, as an emergency, except an amount of 

25 budget authority and the outlays flowing thereVerDate Nov 24 2008 16:45 Mar 11, 2010 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S3096.IS S3096

pwalker on DSK8KYBLC1PROD with BILLS
17 

•S 3096 IS

1 from so designated that is above the emergency 

2 reserve fund as calculated in section 317(b) of 

3 Congressional Budget Act of 1974 shall not be 

4 exempt. 

5 ‘‘(G) Any program whose growth in the 

6 budget year is equal to or less than the con7 sumer price index. 

8 ‘‘(H) Intergovernmental transfers. 

9 ‘‘(3) ONE-PERCENT REDUCTION LIMITATION.— 

10 No program shall be subject to a spending reduction 

11 of more than one percent of its budgetary resources. 

12 ‘‘(4) CALCULATION OF SPENDING REDUC13 TION.—The percentage required to produce a spend14 ing reduction, as ordered by a spending reduction 

15 order, shall be calculated by OMB by adding all 

16 budgetary resources of the Government, and reduc17 ing that amount by an amount sufficient to reduce 

18 the total amount of outlays of the Government to 

19 equal, or lower, a level of outlays than the amount 

20 set forth in the guideline period. 

21 ‘‘(5) APPLICATION.—Once issued, a spending 

22 reduction shall be applied to nonexempt programs as 

23 follows: 


pwalker on DSK8KYBLC1PROD with BILLS
18 

•S 3096 IS

1 ‘‘(A) Budgetary resources subject to a 

2 spending reduction to any non-defense discre3 tionary account shall be permanently canceled. 

4 ‘‘(B) The same percentage spending reduc5 tion shall apply to all programs, projects, and 

6 activities within a budget account (with pro7 grams, projects, and activities as delineated in 

8 the appropriation Act or accompanying report 

9 for the relevant fiscal year covering that ac10 count, or for accounts not included in appro11 priation Acts, as delineated in the most recently 

12 submitted President’s budget). 

13 ‘‘(C) Administrative regulations imple14 menting a spending reduction shall be made 

15 within 120 days of the issue of a spending re16 duction order. 

17 ‘‘(6) OASDI SPECIAL PROCEDURES.—If the 

18 OASDI Trust Funds are subject to sequestration, 

19 then payments from such Trust Funds shall be 

20 treated the same as other programs, except— 

21 ‘‘(A) reductions from such Trust Funds 

22 shall not exceed one percent of the 75-year un23 funded liability set forth in the most current 

24 Social Security Trustees Report; 


pwalker on DSK8KYBLC1PROD with BILLS
19 

•S 3096 IS

1 ‘‘(B) reduction in individual benefits shall 

2 be implemented by increasing the Normal Re3 tirement Age by an amount certified by the So4 cial Security Office of the Chief Actuary; 

5 ‘‘(C) the increase in the Normal Retire6 ment Age shall not be applied to any bene7 ficiary born in a year 55 years or before— 

8 ‘‘(i) the year of the enactment of the 

9 Economic Disaster Prevention Act of 

10 2010; or 

11 ‘‘(ii) the year in which the final 

12 spending sequestration report is issued; 

13 and 

14 ‘‘(D) no change in the Normal Retirement 

15 Age shall be made before it is fully phased-in 

16 under the Social Security Act as in effect before 

17 the date of enactment of the Economic Disaster 

18 Prevention Act of 2010. 

19 ‘‘(d) NON-DEFENSE DISCRETIONARY SPENDING SE20 QUESTRATION.— 

21 ‘‘(1) ELIMINATING A BREACH.—Each non22 exempt account shall be reduced by an amount of 

23 budget authority calculated by multiplying the base24 line level of budgetary resources subject to sequesVerDate Nov 24 2008 16:45 Mar 11, 2010 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S3096.IS S3096

pwalker on DSK8KYBLC1PROD with BILLS
20 

•S 3096 IS

1 tration in that account at that time by the uniform 

2 percentage necessary to eliminate a breach by— 

3 ‘‘(A) first, calculating the uniform percent4 age necessary to eliminate a breach in new 

5 budget authority, if any; and 

6 ‘‘(B) second, if any breach in outlays re7 mains, increasing the uniform percentage to a 

8 level sufficient to eliminate that breach. 

9 ‘‘(2) EMERGENCY SPENDING ABOVE THE RE10 SERVE FUND.—An amount of budget authority and 

11 the outlays flowing therefrom designated in statute 

12 as an emergency that is above level in the emergency 

13 reserve fund as calculated in section 317(b) of the 

14 Congressional Budget Act of 1974 shall count to15 ward the non-defense discretionary spending limits. 

16 ‘‘(3) PART-YEAR APPROPRIATIONS.—If, on the 

17 date specified in paragraph (1), there is in effect an 

18 Act making or continuing appropriations for part of 

19 a fiscal year for any budget account, then the dollar 

20 sequestration calculated for that account under 

21 paragraph (2) shall be subtracted from— 

22 ‘‘(A) the annualized amount otherwise 

23 available by law in that account under that or 

24 a subsequent part-year appropriation; and 


pwalker on DSK8KYBLC1PROD with BILLS
21 

•S 3096 IS

1 ‘‘(B) when a full-year appropriation for 

2 that account is enacted, from the amount other3 wise provided by the full year appropriation. 

4 ‘‘(4) LOOK-BACK.—If, after June 30, an appro5 priation for the fiscal year in progress is enacted 

6 that causes a breach for that year, the non-defense 

7 discretionary spending limits for the next fiscal year 

8 shall be reduced by the amount of the breach. 

9 ‘‘(5) WITHIN-SESSION SEQUESTRATION.—If an 

10 appropriation for a fiscal year in progress is enacted 

11 (after Congress adjourns to end the session for that 

12 budget year and before July 1 of that fiscal year) 

13 that causes a breach for that year (after taking into 

14 account any prior sequestration of amounts), 15 

15 days later there shall be a sequestration to eliminate 

16 that breach following the procedures set forth in 

17 paragraphs (2) through (3). 

18 ‘‘(6) ESTIMATES.— 

19 ‘‘(A) CBO ESTIMATES.—As soon as prac20 ticable after Congress completes action on any 

21 non-defense discretionary appropriation, CBO, 

22 after consultation with the Committees on the 

23 Budget of the House of Representatives and the 

24 Senate, shall provide OMB with an estimate of 

25 the amount of non-defense discretionary new 


pwalker on DSK8KYBLC1PROD with BILLS
22 

•S 3096 IS

1 budget authority and outlays for the current 

2 year (if any) and the budget year provided by 

3 that legislation. 

4 ‘‘(B) OMB ESTIMATES.—Not later than 7 

5 calendar days (excluding Saturdays, Sundays, 

6 and legal holidays) after the date of enactment 

7 of any non-defense discretionary appropriation, 

8 OMB shall transmit a report to the House of 

9 Representatives and to the Senate containing 

10 the CBO estimate of that legislation, an OMB 

11 estimate of the amount of non-defense discre12 tionary new budget authority and outlays for 

13 the current year (if any) and the budget year 

14 provided by that legislation, and an explanation 

15 of any difference between the two estimates. 

16 ‘‘(C) EXPLANATION OF DIFFERENCES BE17 TWEEN OMB AND OMB ESTIMATES.—If OMB 

18 determines that there is a significant difference 

19 between OMB and CBO reports prepared pur20 suant to subparagraph (A) and (B), OMB shall 

21 consult with the Committees on the Budget of 

22 the House of Representatives and the Senate 

23 regarding that difference and that consultation 

24 shall include, to extent practicable, written com25 munication to those committees that affords 


pwalker on DSK8KYBLC1PROD with BILLS
23 

•S 3096 IS

1 such committees the opportunity to comment 

2 before the issuance of the report. 

3 ‘‘(D) ASSUMPTIONS AND GUIDELINES.— 

4 OMB estimates under this paragraph shall be 

5 made using current economic and technical as6 sumptions. OMB shall use the OMB estimates 

7 transmitted to Congress under this paragraph. 

8 OMB and CBO shall prepare estimates under 

9 this paragraph in conformance with 

10 scorekeeping guidelines determined after con11 sultation among the House of Representatives 

12 and Senate Committees on the Budget, CBO, 

13 and OMB. 

14 ‘‘(E) ANNUAL APPROPRIATIONS.—For pur15 poses of this paragraph, amounts provided by 

16 annual appropriations shall include any new 

17 budget authority and outlays for the current 

18 year (if any) and the budget year in accounts 

19 for which funding is provided in that legislation 

20 that result from previously enacted legislation. 

21 ‘‘(7) NON-DEFENSE DISCRETIONARY SEQUES22 TRATION LIMITATION.—If appropriations for a fiscal 

23 year do not require a sequester pursuant to the non24 defense discretionary spending limits set forth in 

25 this Act, non-defense discretionary accounts shall 


pwalker on DSK8KYBLC1PROD with BILLS
24 

•S 3096 IS

1 not be subject to sequestration under section 

2 252A.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

4 (1) REPEALS.—Section 255 of the Balanced 

5 Budget and Emergency Deficit Control Act of 1985 

6 is repealed. 

7 (2) CONFORMING AMENDMENT.—The item re8 lating to section 256 in the table of contents set 

9 forth in section 250(a) of the Balanced Budget and 

10 Emergency Deficit Control Act of 1985 is amended 

11 to read as follows: 

‘‘Sec. 256. Spending reduction order.’’. 

12 TITLE II—PROHIBITION ON NEW 

13 DIRECT SPENDING PROGRAMS 

14 SEC. 201. PROHIBITION ON NEW DIRECT SPENDING PRO15 GRAMS. 

16 (a) IN GENERAL.—It shall not be in order in the Sen17 ate or the House of Representatives to consider any bill, 

18 resolution, amendment, motion, conference report, or 

19 other provision that increases the level of direct spending 

20 for an existing program or creates new direct spending 

21 unless the provision provides that the increased or new 

22 direct spending expires 10 years after the effective date 

23 of such spending. 

24 (b) WAIVER, SUSPENSION, AND APPEALS.— 

25 (1) IN THE SENATE.— 


pwalker on DSK8KYBLC1PROD with BILLS
25 

•S 3096 IS

1 (A) WAIVER AND SUSPENSION.—The pro2 visions of this section may be waived or sus3 pended in the Senate only by the affirmative 

4 vote of three-fifths of the Members, duly chosen 

5 and sworn. 

6 (B) APPEALS.—Appeals in the Senate 

7 from the decisions of the Chair relating to any 

8 provision of this section shall be limited to 1 

9 hour, to be equally divided between, and con10 trolled by, the appellant and the manager of the 

11 bill or joint resolution, as the case may be. An 

12 affirmative vote of three-fifths of the Members 

13 of the Senate, duly chosen and sworn, shall be 

14 required to sustain an appeal of the ruling of 

15 the Chair on a point of order raised under this 

16 section. 

17 (2) IN THE HOUSE OF REPRESENTATIVES.— 

18 The provisions of this section may be waived or sus19 pended in the House of Representatives: 

20 (A) Only by a rule or order proposing only 

21 to waive such provisions by an affirmative vote 

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

23 sworn. 


pwalker on DSK8KYBLC1PROD with BILLS
26 

•S 3096 IS

1 (B) It shall not be in order to consider a 

2 rule or order that waives the application of sub3 paragraph (A). 

4 (C) It shall not be in order for the Speaker 

5 to entertain a motion to suspend the application 

6 of this section under clause 1 of rule XV of the 

7 Rules of the House of Representatives. 

Æ 


pwalker on DSK8KYBLC1PROD with BILLS