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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3652 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3652

    To provide for comprehensive budget reform in order to increase 
                  transparency and reduce the deficit.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2010

   Mr. Thune introduced the following bill; which was read twice and 
                referred to the Committee on the Budget

_______________________________________________________________________

                                 A BILL

 
    To provide for comprehensive budget reform in order to increase 
                  transparency and reduce the deficit.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Deficit Reduction 
and Budget Reform Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
                    TITLE I--JOINT BUDGET RESOLUTION

Sec. 101. Purposes.
Sec. 102. Timetable.
Sec. 103. Joint resolution on the budget.
Sec. 104. Budget required before spending bills may be considered.
Sec. 105. Amendments to joint resolutions on the budget.
Sec. 106. Continuing appropriations.
                       TITLE II--BIENNIAL BUDGET

Sec. 201. Effective date.
Sec. 202. Revision of timetable.
Sec. 203. Amendments to the Congressional Budget and Impoundment 
                            Control Act of 1974.
Sec. 204. Amendments to Rules of the House of Representatives.
Sec. 205. Two-year appropriations; title and style of appropriation 
                            Acts.
Sec. 206. Multiyear authorizations.
Sec. 207. Government strategic and performance plans on a biennial 
                            basis.
Sec. 208. Biennial appropriation bills.
Sec. 209. Assistance by Federal agencies to standing committees of the 
                            Senate and the House of Representatives.
                TITLE III--DISCRETIONARY SPENDING LIMITS

                      Subtitle A--Spending Limits

Sec. 301. Discretionary spending limits.
                     Subtitle B--Reports and Orders

Sec. 311. Reports and orders.
Sec. 312. Spending limits enforcement.
Sec. 313. Spending reduction order.
                  TITLE IV--LEGISLATIVE LINE-ITEM VETO

Sec. 401. Short title.
Sec. 402. Legislative line-item veto.
Sec. 403. Technical and conforming amendments.
Sec. 404. Rescission measures considered.
               TITLE V--BIENNIAL BUDGET DEFICIT REDUCTION

Sec. 501. Joint Committee on Deficit Reduction.
Sec. 502. Biennial budget deficit reduction legislation.
          TITLE VI--PAYGO HONESTY WITH RESPECT TO TRUST FUNDS

Sec. 601. PAYGO and trust funds.

                    TITLE I--JOINT BUDGET RESOLUTION

SEC. 101. PURPOSES.

    Paragraphs (1) and (2) of section 2 of the Congressional Budget and 
Impoundment Control Act of 1974 are amended to read as follows:
            ``(1) to assure effective control over the budgetary 
        process; and
            ``(2) to facilitate the determination each year of the 
        appropriate level of Federal revenues and expenditures by the 
        Congress and the President;''.

SEC. 102. TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 is amended to 
read as follows:

                              ``timetable

    ``Sec. 300. The timetable with respect to the Congressional budget 
process for any fiscal year is as follows:

                                                 ``First Session
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    Committees submit views and estimates to Budget Committees.
 submits budget.
April 1.................................  Budget Committees report joint resolution on the budget.
 April 15...............................  Congress completes action on joint resolution on the budget.
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.''.
 

SEC. 103. JOINT RESOLUTION ON THE BUDGET.

    (a) Content of Joint Resolutions on the Budget.--Section 301(a)(4) 
of the Congressional Budget Act of 1974 is amended to read as follows:
            ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, Medicare, Medicaid, other direct spending (excluding 
        interest), and interest; and for emergencies (for the reserve 
        fund in section 317(b) and for military operations in section 
        317(C));''.
    (b) Additional Matters in Joint Resolution.--Section 301(b) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraphs (1), and (6) through (9).
            (2) Redesignate paragraphs (2), (3), (4), and (5) 
        accordingly.
            (3) Amend paragraph (3), as redesignated, to read as 
        follows:
            ``(3) set forth such other matters, and require such other 
        procedures, relating to the budget as may be appropriate to 
        carry out the purposes of the Act, but shall not include a 
        suspension or alteration of the application of the motion to 
        strike a provision as set forth in section 310(d)(2) or 
        (h)(2)(F).''.
    (c) Required Contents of Report.--Section 301(e)(2) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A), (B), (C), (D), (E), and 
        (F) as subparagraphs (B), (C), (E), (F), (H), and (I), 
        respectively.
            (2) Before subparagraph (B) (as redesignated), insert the 
        following new subparagraph:
                    ``(A) new budget authority and outlays for each 
                major functional category, based on allocations of the 
                total levels set forth pursuant to subsection 
                (a)(1);''.
            (3) In subparagraph (C) (as redesignated), strike 
        ``mandatory'' and insert ``direct spending''.
            (4) After subparagraph (C) (as redesignated), insert the 
        following new subparagraph:
                    ``(D) a measure, as a percentage of gross domestic 
                product, of total outlays, total Federal revenues, the 
                surplus or deficit, and new outlays for nondefense 
                discretionary spending, defense spending, Medicare, 
                Medicaid and other direct spending as set forth in such 
                resolution;''.
            (5) After subparagraph (F) (as redesignated), insert the 
        following new subparagraph:
                    ``(G) if the joint resolution on the budget 
                includes any allocation to a committee other than the 
                Committee on Appropriations of levels in excess of 
                current law levels, a justification for not subjecting 
                any program, project, or activity (for which the 
                allocation is made) to annual discretionary 
                appropriations;''.
    (d) Additional Contents of Report.--Section 301(e)(3) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A) and (B) as subparagraphs 
        (B) and (C), respectively, strike subparagraphs (C) and (D), 
        and redesignate subparagraph (E) as subparagraph (D) and strike 
        the period and insert ``; and''.
            (2) Before subparagraph (B), insert the following new 
        subparagraph:
                    ``(A) new budget authority and outlays for each 
                major functional category, based on allocations of the 
                total levels set forth pursuant to subsection 
                (a)(1);''.
            (3) At the end, add the following new subparagraph:
                    ``(E) set forth, if required by subsection (f), the 
                calendar year in which, in the opinion of the Congress, 
                the goals for reducing unemployment set forth in 
                section 4(b) of the Employment Act of 1946 should be 
                achieved.''.
    (e) Budget Presentation.--After section 301(e)(3) add the following 
new paragraph:
            ``(4) Budget format.--In addition to the contents that may 
        be included in the report pursuant to paragraph (3), a 
        presentation of the functional categories may also be included 
        as follows:
                    ``(A) Principal federal obligations.--Activities 
                intrinsic to the Federal Government (including both 
                discretionary and mandatory spending) as follows:
                            ``(i) National defense;
                            ``(ii) International affairs;
                            ``(iii) Veterans benefits and services; and
                            ``(iv) Administration of justice.
                    ``(B) Federally supported domestic priorities.--The 
                total domestic discretionary spending levels as 
                follows:
                            ``(i) Total domestic discretionary 
                        spending.
                            ``(ii) Optional inclusion of additional 
                        specific recommended levels.
                    ``(C) Major domestic entitlements.--Major domestic 
                direct spending programs as follows:
                            ``(i) Medicare.
                            ``(ii) Medicaid.
                            ``(iii) Other direct spending.
                            ``(iv) Optional inclusion of additional 
                        specific recommended levels.
                    ``(D) General government and financial 
                management.--Funding for financing government 
                operations as follows:
                            ``(i) General government.
                            ``(ii) Net interest.
                            ``(iii) Allowances.
                            ``(iv) Offsetting receipts.''.
    (f) President's Budget Submission to Congress.--(1) The first two 
sentences of section 1105(a) of title 31, United States Code, are 
amended to read as follows: ``On or after the first Monday in January 
but not later than the first Monday in February of each year the 
President shall submit a budget of the United States Government for the 
following fiscal year which shall set forth the following levels:
            ``(A) Totals of new budget authority and outlays.
            ``(B) Total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees.
            ``(C) The surplus or deficit in the budget.
            ``(D) Subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending (excluding interest), and interest, 
        and for emergencies (for the reserve fund in section 317(b) and 
        for military operations in section 317(c)).
            ``(E) The public debt.
Each budget submission shall include a budget message and summary and 
supporting information and, as a separately delineated statement, the 
levels requires in the preceding sentence for at least each of the 4 
ensuing fiscal years.''.
    (2) The third sentence of section 1105(a) of title 31, United 
States Code, is amended by inserting ``submission'' after ``budget''.
    (g) Limitation on the Content of Budget Resolutions.--Section 305 
of the Congressional Budget Act of 1974 is amended by adding at the end 
the following new subsection:
    ``(e) Limitation on Contents.--(1) It shall not be in order in the 
House of Representatives or in the Senate to consider any joint 
resolution on the budget or any amendment thereto or conference report 
thereon that contains any matter referred to in paragraph (2).
    ``(2) Any joint resolution on the budget or any amendment thereto 
or conference report thereon that contains any matter not permitted in 
section 301(a) or (b) shall not be treated in the House of 
Representatives or the Senate as a budget resolution under subsection 
(a) or (b) or as a conference report on a budget resolution under 
subsection (c) of this section.''.

SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED.

    (a) Amendments to Section 302.--Section 302 of the Congressional 
Budget Act of 1974 is amended--
            (1) in subsection (a), by striking paragraph (5); and
            (2) in subsection (f)(1)(A), by striking ``as reported''.
    (b) Amendments to Section 303 and Conforming Amendments.--(1) 
Section 303 of the Congressional Budget Act of 1974 is amended by 
striking ``(a) In General.--'', by striking ``has been agreed to'' and 
inserting ``takes effect in subsection (a)'', and by striking 
subsections (b) and (c); and
    (2) by striking its section heading and inserting the following new 
section heading: ``consideration of budget-related legislation before 
budget becomes law''.
    (c) Expedited Procedures Upon Veto of Joint Resolution on the 
Budget.--(1) Title III of the Congressional Budget Act of 1974 is 
amended by adding after section 315 the following new section:

   ``expedited procedures upon veto of joint resolution on the budget

    ``Sec. 316.  (a) Special Rule.--If the President vetoes a joint 
resolution on the budget for a fiscal year, the majority leader of the 
House of Representatives or Senate (or his designee) shall introduce a 
concurrent resolution on the budget or joint resolution on the budget 
for such fiscal year. If the Committee on the Budget of either House 
fails to report such concurrent or joint resolution referred to it 
within five calendar days (excluding Saturdays, Sundays, or legal 
holidays except when that House of Congress is in session) after the 
date of such referral, the committee shall be automatically discharged 
from further consideration of such resolution and such resolution shall 
be placed on the appropriate calendar.
    ``(b) Procedure in the House of Representatives and the Senate.--
            ``(1) Except as provided in paragraph (2), the provisions 
        of section 305 for the consideration in the House of 
        Representatives and in the Senate of joint resolutions on the 
        budget and conference reports thereon shall also apply to the 
        consideration of concurrent resolutions on the budget 
        introduced under subsection (a) and conference reports thereon.
            ``(2) Debate in the Senate on any concurrent resolution on 
        the budget or joint resolution on the budget introduced under 
        subsection (a), and all amendments thereto and debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 10 hours and in the House of Representatives 
        such debate shall be limited to not more than 3 hours.
    ``(c) Contents of Concurrent Resolutions.--Any concurrent 
resolution on the budget introduced under subsection (a) shall be in 
compliance with section 301.
    ``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a 
concurrent resolution on the budget described in subsection (a) is 
agreed to, then the aggregates, allocations, and reconciliation 
directives (if any) contained in the report accompanying such 
concurrent resolution or in such concurrent resolution shall be 
considered to be the aggregates, allocations, and reconciliation 
directives for all purposes of sections 302, 303, and 311 for the 
applicable fiscal years and such concurrent resolution shall be deemed 
to be a joint resolution for all purposes of this title and the Rules 
of the House of Representatives and any reference to the date of 
enactment of a joint resolution on the budget shall be deemed to be a 
reference to the date agreed to when applied to such concurrent 
resolution.''.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
inserting after the item relating to section 315 the following new 
item:

``Sec. 316. Expedited procedures upon veto of joint resolution on the 
                            budget.''.

SEC. 105. AMENDMENTS TO JOINT RESOLUTIONS ON THE BUDGET.

    (a) Definition.--Paragraph (4) of section 3 of the Congressional 
Budget Act of 1974 is amended to read as follows:
            ``(4) the term `joint resolution on the budget' means--
                    ``(A) a joint resolution setting forth the budget 
                for the United States Government for a fiscal year as 
                provided in section 301; and
                    ``(B) any other joint resolution revising the 
                budget for the United States Government for a fiscal 
                year as described in section 304.''.
    (b) Additional Amendments to the Congressional Budget and 
Impoundment Control Act of 1974.--(1)(A) Sections 301, 302, 303, 305, 
308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget Act 
of 1974 (2 U.S.C. 621 et seq.) are amended by striking ``concurrent'' 
each place it appears and inserting ``joint''.
    (B) Section 301 of the Congressional Budget Act of 1974 is further 
amended by striking the last sentence.
    (C)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the 
Congressional Budget Act of 1974 are amended by striking ``most 
recently agreed to concurrent resolution on the budget'' each place it 
occurs and inserting ``most recently enacted joint resolution on the 
budget or agreed to concurrent resolution on the budget (as 
applicable)''.
    (ii) The section heading of section 301 is amended by striking 
``annual adoption of concurrent resolution'' and inserting ``joint 
resolutions''; and
    (iii) Section 304 of such Act is amended to read as follows:

             ``permissible revisions of budget resolutions

    ``Sec. 304. At any time after the joint resolution on the budget 
for a fiscal year has been enacted pursuant to section 301, and before 
the end of such fiscal year, the two Houses and the President may enact 
a joint resolution on the budget which revises or reaffirms the joint 
resolution on the budget for such fiscal year most recently enacted, 
and for purposes of the enforcement of the Congressional Budget Act of 
1974, the chairman of the Budget Committee of the House of 
Representatives or the Senate, as applicable, may adjust levels as 
needed for the enforcement off of the budget resolution.''.
    (D) Sections 302, 303, 310, and 311, of such Act are amended by 
striking ``agreed to'' each place it appears and by inserting 
``enacted''.
    (2)(A) Paragraph (4) of section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B) The table of contents set forth in section 1(b) of such Act is 
amended--
            (i) in the item relating to section 301, by striking 
        ``Annual adoption of concurrent resolution'' and inserting 
        ``Joint resolutions'';
            (ii) by striking the item relating to section 303 and 
        inserting the following:

``Sec. 303. Consideration of budget-related legislation before budget 
                            becomes law.'';
        and
            (iii) by striking ``concurrent'' and inserting ``joint'' in 
        the item relating to section 305.
    (c) Conforming Amendments to the Rules of the House of 
Representatives.--Clauses 1(d)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), and 
4(f)(2) of rule X, clause 10 of rule XVIII, clause 10 of rule XX, and 
clauses 7 and 10 of rule XXI of the Rules of the House of 
Representatives are amended by striking ``concurrent'' each place it 
appears and inserting ``joint''.
    (d) Conforming Amendments to the Balanced Budget and Emergency 
Deficit Control Act of 1985.--Section 258C(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is 
amended by striking ``concurrent'' and inserting ``joint''.
    (e) Conforming Amendments to Section 310 Regarding Reconciliation 
Directives.--(1) The side heading of section 310(a) of the 
Congressional Budget Act of 1974 (as amended by section 105(b)) is 
further amended by inserting ``Joint Explanatory Statement Accompanying 
Conference Report on'' before ``Joint''.
    (2) Section 310(a) of such Act is amended by striking ``A'' and 
inserting ``The joint explanatory statement accompanying the conference 
report on a''.
    (3) The first sentence of section 310(b) of such Act is amended by 
striking ``If'' and inserting ``If the joint explanatory statement 
accompanying the conference report on''.
    (4) Section 310(c)(1) of such Act is amended by inserting ``the 
joint explanatory statement accompanying the conference report on'' 
after ``pursuant to''.
    (f) Conforming Amendments to Section 3 Regarding Direct Spending.--
Section 3 of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding at the end the following new paragraph:
            ``(11) The term `direct spending' has the meaning given to 
        such term in section 250(c)(8) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.

SEC. 106. CONTINUING APPROPRIATIONS.

    (a) In General.--Chapter 13 of title 31, United States Code, is 
amended by inserting after section 1310 the following new section:
``Sec. 1311. Continuing appropriations
    ``(a)(1) If any regular appropriation bill for a fiscal year (or, 
if applicable, for each fiscal year in a biennium) does not become law 
before the beginning of such fiscal year or a joint resolution making 
continuing appropriations is not in effect, there are appropriated, out 
of any money in the Treasury not otherwise appropriated, and out of 
applicable corporate or other revenues, receipts, and funds, excluding 
any budget authority designated as an emergency or temporary funding 
for projects or activities that are not part of ongoing operations, to 
such sums as may be necessary to continue any project or activity for 
which funds were provided in the preceding fiscal year--
            ``(A) in the corresponding regular appropriation Act for 
        such preceding fiscal year; or
            ``(B) if the corresponding regular appropriation bill for 
        such preceding fiscal year did not become law, then in a joint 
        resolution making continuing appropriations for such preceding 
        fiscal year.
    ``(2) Appropriations and funds made available, and authority 
granted, for a project or activity for any fiscal year pursuant to this 
section shall be at a rate of operations not in excess of the lower 
of--
            ``(A) the rate of operations provided for in the regular 
        appropriation Act providing for such project or activity for 
        the preceding fiscal year;
            ``(B) in the absence of such an Act, the rate of operations 
        provided for such project or activity pursuant to a joint 
        resolution making continuing appropriations for such preceding 
        fiscal year;
            ``(C) the rate of operations provided for in the regular 
        appropriation bill as passed by the House of Representatives or 
        the Senate for the fiscal year in question, except that the 
        lower of these two versions shall be ignored for any project or 
        activity for which there is a budget request if no funding is 
        provided for that project or activity in either version; or
            ``(D) the annualized rate of operations provided for in the 
        most recently enacted joint resolution making continuing 
        appropriations for part of that fiscal year or any funding 
        levels established under the provisions of this Act.
    ``(3) Appropriations and funds made available, and authority 
granted, for any fiscal year pursuant to this section for a project or 
activity shall be available for the period beginning with the first day 
of a lapse in appropriations and ending with the earlier of--
            ``(A) the date on which the applicable regular 
        appropriation bill for such fiscal year becomes law (whether or 
        not such law provides for such project or activity) or a 
        continuing resolution making appropriations becomes law, as the 
        case may be; or
            ``(B) the last day of such fiscal year.
    ``(b) An appropriation or funds made available, or authority 
granted, for a project or activity for any fiscal year pursuant to this 
section shall be subject to the terms and conditions imposed with 
respect to the appropriation made or funds made available for the 
preceding fiscal year, or authority granted for such project or 
activity under current law.
    ``(c) Appropriations and funds made available, and authority 
granted, for any project or activity for any fiscal year pursuant to 
this section shall cover all obligations or expenditures incurred for 
such project or activity during the portion of such fiscal year for 
which this section applies to such project or activity.
    ``(d) Expenditures made for a project or activity for any fiscal 
year pursuant to this section shall be charged to the applicable 
appropriation, fund, or authorization whenever a regular appropriation 
bill or a joint resolution making continuing appropriations until the 
end of a fiscal year providing for such project or activity for such 
period becomes law.
    ``(e) This section shall not apply to a project or activity during 
a fiscal year if any other provision of law (other than an 
authorization of appropriations)--
            ``(1) makes an appropriation, makes funds available, or 
        grants authority for such project or activity to continue for 
        such period; or
            ``(2) specifically provides that no appropriation shall be 
        made, no funds shall be made available, or no authority shall 
        be granted for such project or activity to continue for such 
        period.
    ``(f) For purposes of this section, the term `regular appropriation 
bill' means any annual appropriation bill making appropriations, 
otherwise making funds available, or granting authority, for any of the 
following categories of projects and activities:
            ``(1) Agriculture, rural development, Food and Drug 
        Administration, and related agencies programs.
            ``(2) The Department of Defense.
            ``(3) Energy and water development, and related agencies.
            ``(4) State, foreign operations, and related programs.
            ``(5) The Department of Homeland Security.
            ``(6) The Department of the Interior, Environmental 
        Protection Agency, and related agencies.
            ``(7) The Departments of Labor, Health and Human Services, 
        and Education, and related agencies.
            ``(8) Military construction, veterans affairs, and related 
        agencies.
            ``(9) Science, the Departments of State, Justice, and 
        Commerce, and related agencies.
            ``(10) The Departments of Transportation, Housing and Urban 
        Development, and related agencies.
            ``(11) The Legislative Branch.
            ``(12) Financial services and general government.''.
    (b) Clerical Amendment.--The analysis of chapter 13 of title 31, 
United States Code, is amended by inserting after the item relating to 
section 1310 the following new item:

``1311. Continuing appropriations.''.

                       TITLE II--BIENNIAL BUDGET

SEC. 201. EFFECTIVE DATE.

    The provisions of this subtitle shall take effect on January 1 of 
the calendar year after the year of the enactment of this Act.

SEC. 202. REVISION OF TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 (2 U.S.C. 631) 
is amended to read as follows:

                              ``timetable

    ``Sec. 300.  (a) In General.--Except as provided by subsection (b), 
the timetable with respect to the congressional budget process for any 
Congress (beginning with the One Hundred Twelfth Congress or a 
subsequent Congress, 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       Committees submit views and estimates to Budget Committees.
 submission.
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 of
                                           Representatives.
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    Congressional Budget Office submits report to Budget Committees.
 submits budget review.
The last day of the session.............  Congress completes action on bills and resolutions authorizing new
                                           budget authority for the succeeding biennium.
 

    ``(b) Special Rule.--In the case of any first session of Congress 
that begins in any year during which the term of a President (except a 
President who succeeds himself) begins, the following dates shall 
supersede those set forth 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 of
                                           Representatives.
July 1..................................  House Appropriations Committee reports last biennial appropriation
                                           bill.
July 20.................................  House completes action on biennial appropriation bills.
October 1...............................  Biennium begins.''.
 

SEC. 203. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT 
              CONTROL ACT OF 1974.

    (a) Declaration of Purpose.--Section 2(2) of the Congressional 
Budget and Impoundment Control Act of 1974 (2 U.S.C. 621(2)) is amended 
by striking ``each year'' and inserting ``biennially''.
    (b) Definitions.--
            (1) Budget resolution.--Section 3(4) of such Act (2 U.S.C. 
        622(4)) is amended by striking ``fiscal year'' each place it 
        appears and inserting ``biennium''.
            (2) Biennium.--Section 3 of such Act (2 U.S.C. 622) (as 
        amended by section 113(a)) is further amended by adding at the 
        end the following new paragraph:
            ``(13) The term `biennium' means the period of 2 
        consecutive fiscal years beginning on October 1 of any odd-
        numbered year.''.
    (c) Biennial Joint Resolution on the Budget.--
            (1) Contents of resolution.--Section 301(a) of such Act (2 
        U.S.C. 632(a)) is amended--
                    (A) in the matter preceding paragraph (1) by--
                            (i) striking ``April 15 of each year'' and 
                        inserting ``May 15 of each odd-numbered year'';
                            (ii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the first place it 
                        appears and inserting ``the biennium beginning 
                        on October 1 of such year'';
                            (iii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the second place it 
                        appears and inserting ``each fiscal year in 
                        such period''; and
                            (iv) striking ``each of the four ensuing 
                        fiscal years'' and inserting ``each fiscal year 
                        in the next 2 bienniums'';
                    (B) in paragraph (6), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''; and
                    (C) in paragraph (7), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''.
            (2) Additional matters.--Section 301(b) of such Act (2 
        U.S.C. 632(b)) is amended--
                    (A) in paragraph (3), by striking ``for such fiscal 
                year'' and inserting ``for either fiscal year in such 
                biennium''; and
                    (B) in paragraph (7), by striking ``for the first 
                fiscal year'' and inserting ``for each fiscal year in 
                the biennium''.
            (3) Views of other committees.--Section 301(d) of such Act 
        (2 U.S.C. 632(d)) is amended by inserting ``(or, if applicable, 
        as provided by section 300(b))'' after ``United States Code''.
            (4) Hearings.--Section 301(e)(1) of such Act (2 U.S.C. 
        632(e)) is amended by--
                    (A) striking ``fiscal year'' and inserting 
                ``biennium''; and
                    (B) inserting after the second sentence the 
                following: ``On or before April 1 of each odd-numbered 
                year (or, if applicable, as provided by section 
                300(b)), the Committee on the Budget of each House 
                shall report to its House the joint resolution on the 
                budget referred to in subsection (a) for the biennium 
                beginning on October 1 of that year.''.
            (5) Goals for reducing unemployment.--Section 301(f) of 
        such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal 
        year'' each place it appears and inserting ``biennium''.
            (6) Economic assumptions.--Section 301(g)(1) of such Act (2 
        U.S.C. 632(g)(1)) is amended by striking ``for a fiscal year'' 
        and inserting ``for a biennium''.
            (7) Section heading.--The section heading of section 301 of 
        such Act is amended by striking ``annual'' and inserting 
        ``biennial''.
            (8) Table of contents.--The item relating to section 301 in 
        the table of contents set forth in section 1(b) of such Act is 
        amended by striking ``Annual'' and inserting ``Biennial''.
    (d) Committee Allocations.--Section 302 of such Act (2 U.S.C. 633) 
is amended--
            (1) in subsection (a)(1) by--
                    (A) striking ``for the first fiscal year of the 
                resolution,'' and inserting ``for each fiscal year in 
                the biennium,'';
                    (B) striking ``for that period of fiscal years'' 
                and inserting ``for all fiscal years covered by the 
                resolution''; and
                    (C) striking ``for the fiscal year of that 
                resolution'' and inserting ``for each fiscal year in 
                the biennium'';
            (2) in subsection (f)(1), by striking ``for a fiscal year'' 
        and inserting ``for a biennium'';
            (3) in subsection (f)(1), by striking ``first fiscal year'' 
        and inserting ``either fiscal year of the biennium'';
            (4) in subsection (f)(2)(A), by--
                    (A) striking ``first fiscal year'' and inserting 
                ``each fiscal year of the biennium''; and
                    (B) striking ``the total of fiscal years'' and 
                inserting ``the total of all fiscal years covered by 
                the resolution''; and
            (5) in subsection (g)(1)(A), by striking ``April'' and 
        inserting ``May''.
    (e) Section 303 Point of Order.--Section 303 of such Act (2 U.S.C. 
634(a)) is amended by striking ``for a fiscal year'' and inserting 
``for a biennium'' and by striking ``the first fiscal year'' and 
inserting ``each fiscal year of the biennium''.
    (f) Permissible Revisions of Joint Resolutions on the Budget.--
Section 304 of such Act (2 U.S.C. 635) is amended--
            (1) by striking ``fiscal year'' the first two places it 
        appears and inserting ``biennium'';
            (2) by striking ``for such fiscal year''; and
            (3) by inserting before the period ``for such biennium''.
    (g) Procedures for Consideration of Budget Resolutions.--Section 
305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended by striking 
``fiscal year'' and inserting ``biennium''.
    (h) Completion of House Committee Action on Appropriation Bills.--
Section 307 of such Act (2 U.S.C. 638) is amended--
            (1) by striking ``each year'' and inserting ``each odd-
        numbered year (or, if applicable, as provided by section 
        300(b), July 1)'';
            (2) by striking ``annual'' and inserting ``biennial'';
            (3) by striking ``fiscal year'' and inserting ``biennium''; 
        and
            (4) by striking ``that year'' and inserting ``each odd-
        numbered year''.
    (i) Completion of House Action on Regular Appropriation Bills.--
Section 309 of such Act (2 U.S.C. 640) is amended--
            (1) by striking ``It'' and inserting ``Except whenever 
        section 300(b) is applicable, it'';
            (2) by inserting ``of any odd-numbered calendar year'' 
        after ``July'';
            (3) by striking ``annual'' and inserting ``biennial''; and
            (4) by striking ``fiscal year'' and inserting ``biennium''.
    (j) Reconciliation Process.--Section 310 of such Act (2 U.S.C. 641) 
is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``any fiscal year'' and inserting ``any 
        biennium'';
            (2) in subsection (a)(1), by striking ``such fiscal year'' 
        each place it appears and inserting ``any fiscal year covered 
        by such resolution''; and
            (3) by striking subsection (f) and redesignating subsection 
        (g) as subsection (f).
    (k) Section 311 Point of Order.--
            (1) In the house of representatives.--Section 311(a)(1) of 
        such Act (2 U.S.C. 642(a)) is amended--
                    (A) by striking ``for a fiscal year'' and inserting 
                ``for a biennium'';
                    (B) by striking ``the first fiscal year'' each 
                place it appears and inserting ``either fiscal year of 
                the biennium''; and
                    (C) by striking ``that first fiscal year'' and 
                inserting ``each fiscal year in the biennium''.
            (2) In the senate.--Section 311(a)(2) of such Act is 
        amended--
                    (A) in subparagraph (A), by striking ``for the 
                first fiscal year'' and inserting ``for either fiscal 
                year of the biennium''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``that first fiscal year'' 
                        the first place it appears and inserting ``each 
                        fiscal year in the biennium''; and
                            (ii) by striking ``that first fiscal year 
                        and the ensuing fiscal years'' and inserting 
                        ``all fiscal years''.
            (3) Social security levels.--Section 311(a)(3) of such Act 
        is amended by--
                    (A) striking ``for the first fiscal year'' and 
                inserting ``each fiscal year in the biennium''; and
                    (B) striking ``that fiscal year and the ensuing 
                fiscal years'' and inserting ``all fiscal years''.
    (l) Maximum Deficit Amount Point of Order.--Section 312(c) of the 
Congressional Budget Act of 1974 (2 U.S.C. 643) is amended--
            (1) by striking ``for a fiscal year'' and inserting ``for a 
        biennium'';
            (2) in paragraph (1), by striking ``first fiscal year'' and 
        inserting ``either fiscal year in the biennium'';
            (3) in paragraph (2), by striking ``that fiscal year'' and 
        inserting ``either fiscal year in the biennium''; and
            (4) in the matter following paragraph (2), by striking 
        ``that fiscal year'' and inserting ``the applicable fiscal 
        year''.

SEC. 204. AMENDMENTS TO RULES OF THE HOUSE OF REPRESENTATIVES.

    (a) Clause 4(a)(1)(A) of rule X of the Rules of the House of 
Representatives is amended by inserting ``odd-numbered'' after 
``each''.
    (b) Clause 4(a)(4) of rule X of the Rules of the House of 
Representatives is amended by striking ``fiscal year'' and inserting 
``biennium''.
    (c) Clause 4(b)(2) of rule X of the Rules of the House of 
Representatives is amended by striking ``each fiscal year'' and 
inserting ``the biennium''.
    (d) Clause 4(b) of rule X of the Rules of the House of 
Representatives is amended by striking ``and'' at the end of 
subparagraph (5), by striking the period and inserting ``; and'' at the 
end of subparagraph (6), and by adding at the end the following new 
subparagraph:
            ``(7) use the second session of each Congress to study 
        issues with long-term budgetary and economic implications, 
        including holding hearings to receive testimony from committees 
        of jurisdiction to identify problem areas and to report on the 
        results of oversight; and by January 1 of each odd-number year, 
        issuing a report to the Speaker which identifies the key issues 
        facing the Congress in the next biennium.''.
    (e) Clause 4(e) of rule X of the Rules of the House of 
Representatives is amended by striking ``annually'' each place it 
appears and inserting ``biennially'' and by striking ``annual'' and 
inserting ``biennial''.
    (f) Clause 4(f) of rule X of the Rules of the House of 
Representatives is amended--
            (1) by inserting ``during each odd-numbered year'' after 
        ``submits his budget'';
            (2) by striking ``fiscal year'' the first place it appears 
        and inserting ``biennium''; and
            (3) by striking ``that fiscal year'' and inserting ``each 
        fiscal year in such ensuing biennium''.
    (g) Clause 11(i) of rule X of the Rules of the House of 
Representatives is amended by striking ``during the same or preceding 
fiscal year''.
    (h) Clause 3(d)(2)(A) of rule XIII of the Rules of the House of 
Representatives is amended by striking ``five'' both places it appears 
and inserting ``six''.
    (i) Clause 5(a)(1) of rule XIII of the Rules of the House of 
Representatives is amended by striking ``fiscal year after September 15 
in the preceding fiscal year'' and inserting ``biennium after September 
15 of the calendar year in which such biennium begins''.

SEC. 205. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF APPROPRIATION 
              ACTS.

    Section 105 of title 1, United States Code, is amended to read as 
follows:
``Sec. 105. Title and style of appropriations Acts
    ``(a) The style and title of all Acts making appropriations for the 
support of the Government shall be as follows: `An Act making 
appropriations (here insert the object) for each fiscal year in the 
biennium of fiscal years (here insert the fiscal years of the 
biennium).'.
    ``(b) All Acts making regular appropriations for the support of the 
Government shall be enacted for a biennium and shall specify the amount 
of appropriations provided for each fiscal year in such period.
    ``(c) For purposes of this section, the term `biennium' has the 
same meaning as in section 3(13) of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 622(13)).''.

SEC. 206. MULTIYEAR AUTHORIZATIONS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(as amended by section 115(a)) is further amended by adding at the end 
the following new section:

              ``multiyear authorizations of appropriations

    ``Sec. 318.  (a) It shall not be in order in the House of 
Representatives or the Senate to consider any measure that contains a 
specific authorization of appropriations for any purpose unless the 
measure includes such a specific authorization of appropriations for 
that purpose for not less than each fiscal year in one or more 
bienniums.
    ``(b)(1) For purposes of this section, a specific authorization of 
appropriations is an authorization for the enactment of an amount of 
appropriations or amounts not to exceed an amount of appropriations 
(whether stated as a sum certain, as a limit, or as such sums as may be 
necessary) for any purpose for a fiscal year.
    ``(2) Subsection (a) does not apply with respect to an 
authorization of appropriations for a single fiscal year for any 
program, project, or activity if the measure containing that 
authorization includes a provision expressly stating the following: 
`Congress finds that no authorization of appropriation will be required 
for [Insert name of applicable program, project, or activity] for any 
subsequent fiscal year.'.
    ``(c) For purposes of this section, the term `measure' means a 
bill, joint resolution, amendment, motion, or conference report.''.
    (b) Amendment to Table of Contents.--The table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by adding after the item relating to 
section 317 the following new item:

``Sec. 318. Multiyear authorizations of appropriations.''.

SEC. 207. GOVERNMENT STRATEGIC AND PERFORMANCE PLANS ON A BIENNIAL 
              BASIS.

    (a) Strategic Plans.--Section 306 of title 5, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2010'';
            (2) in subsection (b)--
                    (A) by striking ``at least every three years'' and 
                all that follows thereafter and inserting ``at least 
                every 4 years, except that strategic plans submitted by 
                September 30, 2010, shall be updated and revised by 
                September 30, 2012''; and
                    (B) by striking ``five years forward'' and 
                inserting ``six years forward''; and
            (3) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and adding ``including 
        a strategic plan submitted by September 30, 2010, meeting the 
        requirements of subsection (a)''.
    (b) Budget Contents and Submission to Congress.--Paragraph (28) of 
section 1105(a) of title 31, United States Code, is amended by striking 
``beginning with fiscal year 1999, a'' and inserting ``beginning with 
fiscal year 2012, a biennial''.
    (c) Performance Plans.--Section 1115 of title 31, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter before paragraph (1) by striking 
                ``an annual'' and inserting ``a biennial'';
                    (B) in paragraph (1) by inserting after ``program 
                activity'' the following: ``for both years 1 and 2 of 
                the biennial plan'';
                    (C) in paragraph (5) by striking ``and'' after the 
                semicolon;
                    (D) in paragraph (6) by striking the period and 
                inserting a semicolon; and inserting ``and'' after the 
                inserted semicolon; and
                    (E) by adding after paragraph (6) the following:
            ``(7) cover each fiscal year of the biennium beginning with 
        the first fiscal year of the next biennial budget cycle.'';
            (2) in subsection (d) by striking ``annual'' and inserting 
        ``biennial''; and
            (3) in paragraph (6) of subsection (g) by striking 
        ``annual'' and inserting ``biennial''.
    (d) Managerial Accountability and Flexibility.--Section 9703 of 
title 31, United States Code, relating to managerial accountability, is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence by striking ``annual''; 
                and
                    (B) by striking ``section 1105(a)(29)'' and 
                inserting ``section 1105(a)(28)'';
            (2) in subsection (e)--
                    (A) in the first sentence by striking ``one or'' 
                before ``two years'';
                    (B) in the second sentence by striking ``a 
                subsequent year'' and inserting ``for a subsequent 2-
                year period''; and
                    (C) in the third sentence by striking ``three'' and 
                inserting ``four''.
    (e) Strategic Plans.--Section 2802 of title 39, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2010'';
            (2) in subsection (b), by striking ``at least every three 
        years'' and inserting ``at least every 4 years except that 
        strategic plans submitted by September 30, 2010, shall be 
        updated and revised by September 30, 2013'';
            (3) in subsection (b), by striking ``five years forward'' 
        and inserting ``six years forward''; and
            (4) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and inserting 
        ``including a strategic plan submitted by September 30, 2010, 
        meeting the requirements of subsection (a)''.
    (f) Performance Plans.--Section 2803(a) of title 39, United States 
Code, is amended--
            (1) in the matter before paragraph (1), by striking ``an 
        annual'' and inserting ``a biennial'';
            (2) in paragraph (1), by inserting after ``program 
        activity'' the following: ``for both years 1 and 2 of the 
        biennial plan'';
            (3) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (4) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (5) by adding after paragraph (6) the following:
            ``(7) cover each fiscal year of the biennium beginning with 
        the first fiscal year of the next biennial budget cycle.''.
    (g) Committee Views of Plans and Reports.--Section 301(d) of the 
Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the 
end ``Each committee of the Senate or the House of Representatives 
shall review the strategic plans, performance plans, and performance 
reports, required under section 306 of title 5, United States Code, and 
sections 1115 and 1116 of title 31, United States Code, of all agencies 
under the jurisdiction of the committee. Each committee may provide its 
views on such plans or reports to the Committee on the Budget of the 
applicable House.''.

SEC. 208. BIENNIAL APPROPRIATION BILLS.

    (a) In the House of Representatives.--Clause 2(a) of rule XXI of 
the Rules of the House of Representatives is amended by adding at the 
end the following new subparagraph:
    ``(3)(A) Except as provided by subdivision (B), an appropriation 
may not be reported in a general appropriation bill (other than a 
supplemental appropriation bill), and may not be in order as an 
amendment thereto, unless it provides new budget authority or 
establishes a level of obligations under contract authority for each 
fiscal year of a biennium.
    ``(B) Subdivision (A) does not apply with respect to an 
appropriation for a single fiscal year for any program, project, or 
activity if the bill or amendment thereto containing that appropriation 
includes a provision expressly stating the following: `Congress finds 
that no additional funding beyond one fiscal year will be required and 
the [Insert name of applicable program, project, or activity] will be 
completed or terminated after the amount provided has been expended.'.
    ``(C) For purposes of paragraph (b), the statement set forth in 
subdivision (B) with respect to an appropriation for a single fiscal 
year for any program, project, or activity may be included in a general 
appropriation bill or amendment thereto.''.
    (b) Conforming Amendment.--Clause 5(b)(1) of rule XXII of the House 
of Representatives is amended by striking ``or (C)'' and inserting ``or 
(3) or 2(C)''.

SEC. 209. ASSISTANCE BY FEDERAL AGENCIES TO STANDING COMMITTEES OF THE 
              SENATE AND THE HOUSE OF REPRESENTATIVES.

    (a) Information Regarding Agency Appropriations Requests.--To 
assist each standing committee of the House of Representatives and the 
Senate in carrying out its responsibilities, the head of each Federal 
agency which administers the laws or parts of laws under the 
jurisdiction of such committee shall provide to such committee such 
studies, information, analyses, reports, and assistance as may be 
requested by the chairman and ranking minority member of the committee.
    (b) Information Regarding Agency Program Administration.--To assist 
each standing committee of the House of Representatives and the Senate 
in carrying out its responsibilities, the head of any agency shall 
furnish to such committee documentation, containing information 
received, compiled, or maintained by the agency as part of the 
operation or administration of a program, or specifically compiled 
pursuant to a request in support of a review of a program, as may be 
requested by the chairman and ranking minority member of such 
committee.
    (c) Summaries by Comptroller General.--Within 30 days after the 
receipt of a request from a chairman and ranking minority member of a 
standing committee having jurisdiction over a program being reviewed 
and studied by such committee under this section, the Comptroller 
General of the United States shall furnish to such committee summaries 
of any audits or reviews of such program which the Comptroller General 
has completed during the preceding 6 years.
    (d) Congressional Assistance.--Consistent with their duties and 
functions under law, the Comptroller General of the United States, the 
Director of the Congressional Budget Office, and the Director of the 
Congressional Research Service shall continue to furnish (consistent 
with established protocols) to each standing committee of the House of 
Representatives or the Senate such information, studies, analyses, and 
reports as the chairman and ranking minority member may request to 
assist the committee in conducting reviews and studies of programs 
under this section.

                TITLE III--DISCRETIONARY SPENDING LIMITS

                      Subtitle A--Spending Limits

SEC. 301. DISCRETIONARY SPENDING LIMITS.

    (a) Discretionary Spending Limits.--Section 251 of the Balanced 
Budget and Emergency Deficit Control of Act of 1985 is amended to read 
as follows:
    ``(a) Discretionary Spending Limits.--The total level of 
discretionary spending for all non-security discretionary spending 
programs, projects, and activities means, in any fiscal year in which 
there is a deficit through fiscal year 2020, an amount of non-security 
discretionary spending outlays not exceeding the levels for fiscal year 
2008 as adjusted for inflation.
    ``(b) Non-Security Spending.--In this section, the term non-
security discretionary spending means discretionary spending other than 
spending for the Department of Defense, the Department of Veterans 
Affairs, homeland security activities, and intelligence related 
activities within the Department of State.
    ``(c) Timing of Sequestration Report.--Within 15 calendar days 
after Congress adjourns to end a session OMB shall issue a final 
spending reduction report to reduce an excess spending amount.
    ``(d) Spending Reduction Order.--A spending reduction ordered 
pursuant to subsection (b) shall be implemented using the procedures 
set forth in section 256.''.
    (b) Conforming Amendment.--The item relating to section 251 in the 
table of contents set forth in 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended to read as follows:

``Sec. 251. Discretionary spending limits.''.

                     Subtitle B--Reports and Orders

SEC. 311. REPORTS AND ORDERS.

    Section 254 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows:

``SEC. 254. REPORTS AND ORDERS.

    ``(a) Timetable.--

``Date:                                   Action to be completed:
5 days before the President's budget      CBO sequestration preview report.
 submission.
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.
 

    ``(b) Submission and Availability of Reports.--Each report required 
by this section shall be submitted to the Budget Committees of the 
House of Representatives and the Senate. On the following day a notice 
of the report shall be printed in the Federal Register.
    ``(c) Sequestration Preview Reports.--
            ``(1) Reporting requirement.--On the dates specified in 
        subsection (a), OMB and CBO shall issue a preview report 
        regarding discretionary sequestration based on laws enacted 
        through those dates.
            ``(2) Discretionary spending limit sequestration report.--
        The preview reports shall set forth estimates for the current 
        year and each subsequent year through 2019 of the applicable 
        discretionary spending limits and an explanation of any 
        adjustments in such limits under section 251.
            ``(3) Explanation of differences.--The OMB reports shall 
        explain the differences between OMB and CBO estimates for each 
        item set forth in this subsection.
    ``(d) Sequestration Update Reports.--On the dates specified in 
subsection (a), OMB and CBO shall issue a sequestration update report, 
reflecting laws enacted through those dates, containing all of the 
information required in the sequestration preview reports.
    ``(e) Final Sequestration Reports.--
            ``(1) Reporting requirement.--On the dates specified in 
        subsection (a), OMB and CBO shall issue a final sequestration 
        report, updated to reflect laws enacted through those dates.
            ``(2) Discretionary spending sequestration reports.--The 
        final reports shall set forth estimates for each of the 
        following:
                    ``(A) For the current year and each subsequent year 
                the applicable discretionary spending limits for each 
                category and an explanation of any adjustments in such 
                limits under section 251.
                    ``(B) For the current year and the budget year the 
                estimated new budget authority and outlays for each 
                category and the breach, if any, in each category.
                    ``(C) For each category for which a sequestration 
                is required, the sequestration percentages necessary to 
                achieve the required reduction.
                    ``(D) For the budget year, for each account to be 
                sequestered, estimates of the baseline level of 
                budgetary resources subject to sequestration and 
                resulting outlays and the amount of budgetary resources 
                to be sequestered and resulting outlay reductions.
            ``(3) Explanation of differences.--The OMB report shall 
        explain any differences between OMB and CBO estimates of the 
        amount of any required sequestration percentage. The OMB report 
        shall also explain differences in the amount of sequesterable 
        resources for any budget account to be reduced if such 
        difference is greater than $5,000,000.
            ``(4) Presidential order.--On the date specified in 
        subsection (a), if in its final sequestration report OMB 
        estimates that any sequestration is required, the President 
        shall issue an order fully implementing without change all 
        sequestrations required by the OMB calculations set forth in 
        that report. This order shall be effective on issuance.
    ``(f) Within-Session Sequestration Reports.--If an appropriation 
for a fiscal year in progress is enacted (after Congress adjourns to 
end the session for that budget year and before July 1 of that fiscal 
year) that causes a breach, 10 days later CBO shall issue a report 
containing the information required in subsection (e)(2). Fifteen days 
after enactment, OMB shall issue a report containing the information 
required in subsections (e)(2) and (e)(4). On the same day as the OMB 
report, the President shall issue an order fully implementing without 
change all sequestrations required by the OMB calculations set forth in 
that report. This order shall be effective on issuance.
    ``(g) GAO Compliance Report.--Upon request of the Committee on the 
Budget of the House of Representatives or the Senate, the Comptroller 
General shall submit to the Congress and the President a report on--
            ``(1) the extent to which each order issued by the 
        President under this section complies with all of the 
        requirements contained in this part, either certifying that the 
        order fully and accurately complies with such requirements or 
        indicating the respects in which it does not; and
            ``(2) the extent to which each report issued by OMB or CBO 
        under this section complies with all of the requirements 
        contained in this part, either certifying that the report fully 
        and accurately complies with such requirements or indicating 
        the respects in which it does not.
    ``(h) Low-Growth Report.--At any time, CBO shall notify the 
Congress if--
            ``(1) during the period consisting of the quarter during 
        which such notification is given, the quarter preceding such 
        notification, and the 4 quarters following such notification, 
        CBO or OMB has determined that real economic growth is 
        projected or estimated to be less than zero with respect to 
        each of any 2 consecutive quarters within such period; or
            ``(2) the most recent of the Department of Commerce's 
        advance preliminary or final reports of actual real economic 
        growth indicate that the rate of real economic growth for each 
        of the most recently reported quarter and the immediately 
        preceding quarter is less than one percent.
    ``(i) Economic and Technical Assumptions.--In all reports required 
by this section, OMB shall use the same economic and technical 
assumptions as used in the most recent budget submitted by the 
President under section 1105(a) of title 31, United States Code''.

SEC. 312. SPENDING LIMITS ENFORCEMENT.

    (a) Conforming Amendments to Section 312.--Section 312 of the 
Congressional Budget Act of 1974 is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Budget Committee Determinations.--For purposes of this title, 
the levels of new budget authority, outlays, direct spending, deficits, 
revenues, and debt, or the increases or decreases of such levels for 
purpose of section 303, shall be determined on the basis of estimates 
made by the Committee on the Budget of the House of Representatives or 
the Senate, as applicable.''.
            (2) by striking subsections (b) and (c) and redesignating 
        subsections (d), (e), and (f) as (h), (i), and (j).
    (b) Enforcement Amendments to Section 312.--Section 312 of the 
Congressional Budget Act of 1974 is further amended by adding at the 
end the following new subsections after subsection (a):
    ``(b) Discretionary Spending Limit Point of Order.--It shall not be 
in order in the House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, concurrent resolution, or conference 
report that--
            ``(1) causes the discretionary spending limits for the 
        budget year to be breached;
            ``(2) increases the discretionary spending limits for the 
        budget year or any ensuing fiscal year; or
            ``(3) includes any provision that has the effect of 
        modifying the application of section 251 of the Balanced Budget 
        and Emergency Deficit Control Act of 1985.
    ``(c) Sequestration Application.--It shall not be in order in the 
House of Representatives or the Senate to consider any bill, joint 
resolution, amendment, concurrent resolution, or conference report 
that--
            ``(1) includes any provision that has the effect of 
        modifying the application of section 256 of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 to any program 
        subject to sequestration or exempt from sequestration; and
            ``(2) includes any provision that has the effect of 
        modifying the application of section 251 to any program subject 
        to sequestration or exempt from sequestration.
    ``(d) Waiver or Suspension.--The provisions of this section may be 
waived or suspended:
            ``(1) In the senate.--In the Senate only by the affirmative 
        vote of three-fifths of the Members, duly chosen and sworn.
            ``(2) In the house of representatives.--In the House of 
        Representatives:
                    ``(A) Only by a rule or order proposing only to 
                waive such provisions by an affirmative vote of two-
                thirds of the Members, duly chosen and sworn.
                    ``(B) It shall not be in order to consider a rule 
                or order that waives the application of subparagraph 
                (A).
                    ``(C) It shall not be in order for the Speaker to 
                entertain a motion to suspend the application of this 
                section under clause 1 of rule XV of the Rules of the 
                House of Representatives.''.

SEC. 313. SPENDING REDUCTION ORDER.

    (a) In General.--Section 256 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended to read as follows:

``SEC. 256. SPENDING REDUCTION ORDER.

    ``(a) Application.--A spending reduction order issued pursuant to 
this part shall apply to eliminate breaches of the limits set forth in 
sections 251 (discretionary spending limits).
    ``(b) General Rules.--OMB shall include in its final spending 
sequestration report a requirement that each nonexempt spending account 
shall be reduced by an amount of budget authority calculated by 
multiplying the baseline level of budgetary resources in that account 
at that time by the uniform percentage necessary to reduce outlays 
sufficient to eliminate an excess spending amount.
    ``(c) Discretionary Spending Sequestration.--
            ``(1) Eliminating a breach.--Each nonexempt account shall 
        be reduced by an amount of budget authority calculated by 
        multiplying the baseline level of budgetary resources subject 
        to sequestration in that account at that time by the uniform 
        percentage necessary to eliminate a breach by--
                    ``(A) first, calculating the uniform percentage 
                necessary to eliminate a breach in new budget 
                authority, if any, and
                    ``(B) second, if any breach in outlays remains, 
                increasing the uniform percentage to a level sufficient 
                to eliminate that breach.
            ``(2) Emergency spending above the reserve fund.--An amount 
        of budget authority and the outlays flowing therefrom 
        designated in statute as an emergency that is above level in 
        the emergency reserve fund as calculated in Section 317(b) of 
        the Congressional Budget Act of 1974 shall count toward the 
        discretionary spending limits.
            ``(3) Part-year appropriations.--If, on the date specified 
        in paragraph (1), there is in effect an Act making or 
        continuing appropriations for part of a fiscal year for any 
        budget account, then the dollar sequestration calculated for 
        that account under paragraph (2) shall be subtracted from--(A) 
        the annualized amount otherwise available by law in that 
        account under that or a subsequent part-year appropriation; and 
        (B) when a full-year appropriation for that account is enacted, 
        from the amount otherwise provided by the full year 
        appropriation.
            ``(4) Look-back.--If, after June 30, an appropriation for 
        the fiscal year in progress is enacted that causes a breach for 
        that year, the discretionary spending limits for the next 
        fiscal year shall be reduced by the amount of the breach.
            ``(5) Within-session sequestration.--If an appropriation 
        for a fiscal year in progress is enacted (after Congress 
        adjourns to end the session for that budget year and before 
        July 1 of that fiscal year) that causes a breach for that year 
        (after taking into account any prior sequestration of amounts), 
        15 days later there shall be a sequestration to eliminate that 
        breach following the procedures set forth in paragraphs (2) 
        through (3).
            ``(6) Estimates.--
                    ``(A) CBO estimates.--As soon as practicable after 
                Congress completes action on any discretionary 
                appropriation, CBO, after consultation with the 
                Committees on the Budget of the House of 
                Representatives and the Senate, shall provide OMB with 
                an estimate of the amount of discretionary new budget 
                authority and outlays for the current year (if any) and 
                the budget year provided by that legislation.
                    ``(B) OMB estimates.--Not later than seven calendar 
                days (excluding Saturdays, Sundays, and legal holidays) 
                after the date of enactment of any discretionary 
                appropriation, OMB shall transmit a report to the House 
                of Representatives and to the Senate containing the CBO 
                estimate of that legislation, an OMB estimate of the 
                amount of discretionary new budget authority and 
                outlays for the current year (if any) and the budget 
                year provided by that legislation, and an explanation 
                of any difference between the two estimates.
                    ``(C) Explanation of differences between omb and 
                cbo estimates.--If OMB determines that there is a 
                significant difference between OMB and CBO reports 
                prepared pursuant to subparagraph (A) and (B), OMB 
                shall consult with the Committees on the Budget of the 
                House of Representatives and the Senate regarding that 
                difference and that consultation shall include, to 
                extent practicable, written communication to those 
                committees that affords such committees the opportunity 
                to comment before the issuance of the report.
                    ``(D) Assumptions and guidelines.--OMB estimates 
                under this paragraph shall be made using current 
                economic and technical assumptions. OMB shall use the 
                OMB estimates transmitted to the Congress under this 
                paragraph. OMB and CBO shall prepare estimates under 
                this paragraph in conformance with scorekeeping 
                guidelines determined after consultation among the 
                House of Representatives and Senate Committees on the 
                Budget, CBO, and OMB.
                    ``(E) Annual appropriations.--For purposes of this 
                paragraph, amounts provided by annual appropriations 
                shall include any new budget authority and outlays for 
                the current year (if any) and the budget year in 
                accounts for which funding is provided in that 
                legislation that result from previously enacted 
                legislation.
    ``(d) Discretionary Sequestration Limitation.--If appropriations 
for a fiscal year do not require a sequester pursuant to the 
discretionary spending limits set forth in this Act, discretionary 
accounts shall not be subject to sequestration under sections 252A, 
252B, or 253.
    ``(e) Expedited Consideration of Spending Reduction Bill.--
            ``(1) Introduction.--
                    ``(A) Reconvening.--
                            ``(i) In the house of representatives.--
                        Upon receipt of a spending reduction bill 
                        (referred to in this section as a `spending 
                        reduction bill') under section 252A(b), the 
                        Speaker, if the House would otherwise be 
                        adjourned, shall notify the Members of the 
                        House that, pursuant to this subsection, the 
                        House shall convene not later than two weeks 
                        after the receipt of the spending reduction 
                        bill.
                            ``(ii) In the senate.--
                                    ``(I) Convening.--Upon receipt of a 
                                spending reduction bill, if the Senate 
                                has adjourned or recessed for more than 
                                2 days, the majority leader of the 
                                Senate, after consultation with the 
                                minority leader of the Senate, shall 
                                notify the Members of the Senate that, 
                                pursuant to this section, the Senate 
                                shall convene not later two weeks after 
                                receipt of the spending reduction bill.
                                    ``(II) Adjourning.--No concurrent 
                                resolution adjourning the Senate for 
                                more than 3 days shall be in order 
                                until the Senate votes on passage of 
                                the spending reduction bill.
                    ``(B) Introduction of spending reduction bill.--The 
                spending reduction bill, upon receipt by the Congress, 
                shall be introduced not later two weeks after the 
                receipt of the spending reduction bill, in the Senate 
                and in the House of Representatives by the majority 
                leader of each House of Congress, for himself, the 
                minority leader of each House of Congress, for himself, 
                or any member of the House designated by the majority 
                leader or minority leader. If the spending reduction 
                bill is not introduced in accordance with the preceding 
                sentence in either House of Congress, then any Member 
                of that House may introduce the spending reduction bill 
                on any day thereafter. Upon introduction, the spending 
                reduction bill shall be referred to the appropriate 
                committees under subparagraph (C).
                    ``(C) Committee consideration.--A spending 
                reduction bill introduced in either House of Congress 
                shall be jointly referred to the committee or 
                committees of jurisdiction and the Committee on the 
                Budget of that House, which committees shall report the 
                bill without any revision and with a favorable 
                recommendation, an unfavorable recommendation, or 
                without recommendation, not later than 7 calendar days 
                after the date of introduction of the bill in that 
                House, or the first day thereafter on which that House 
                is in session. If any committee fails to report the 
                bill within that period, that committee shall be 
                automatically discharged from consideration of the 
                bill, and the bill shall be placed on the appropriate 
                calendar.
            ``(2) Expedited procedures.--
                    ``(A) Fast track consideration in house of 
                representatives.--
                            ``(i) Proceeding to consideration.--It 
                        shall be in order, not later than 2 days of 
                        session after the date on which a spending 
                        reduction bill is reported or discharged from 
                        all committees to which it was referred, for 
                        the majority leader of the House of 
                        Representatives or the majority leader's 
                        designee, to move to proceed to the 
                        consideration of the spending reduction bills. 
                        It shall also be in order for any Member of the 
                        House of Representatives to move to proceed to 
                        the consideration of the spending reduction 
                        bills at any time after the conclusion of such 
                        2-day period. All points of order against the 
                        motion are waived. Such a motion shall not be 
                        in order after the House has disposed of a 
                        motion to proceed on the spending reduction 
                        bills. The previous question shall be 
                        considered as ordered on the motion to its 
                        adoption without intervening motion. The motion 
                        shall not be debatable. A motion to reconsider 
                        the vote by which the motion is disposed of 
                        shall not be in order.
                            ``(ii) Consideration.--A spending reduction 
                        bill shall be considered as read. All points of 
                        order against a spending reduction bill and 
                        against its consideration are waived. The 
                        previous question shall be considered as 
                        ordered on a spending reduction bill to its 
                        passage without intervening motion except 100 
                        hours of debate equally divided and controlled 
                        by the proponent and an opponent, and any 
                        motion to limit debate. A motion to reconsider 
                        the vote on passage of a spending reduction 
                        bill shall not be in order.
                            ``(iii) Appeals.--Appeals from decisions of 
                        the chair relating to the application of the 
                        Rules of the House of Representatives to the 
                        procedure relating to a spending reduction bill 
                        shall be decided without debate.
                            ``(iv) Application of house rules.--Except 
                        to the extent specifically provided in 
                        paragraph (2)(A), consideration of a spending 
                        reduction bill shall be governed by the Rules 
                        of the House of Representatives. It shall not 
                        be in order in the House of Representatives to 
                        consider any spending reduction bill introduced 
                        pursuant to the provisions of this subsection 
                        under a suspension of the rules pursuant to 
                        Clause 1 of House Rule XV, or under a special 
                        rule reported by the House Committee on Rules.
                            ``(v) No amendments.--No amendment to a 
                        spending reduction bill shall be in order in 
                        the House of Representatives.
                            ``(vi) Vote on passage.--Immediately 
                        following the conclusion of consideration of a 
                        spending reduction bill, the vote on passage of 
                        a spending reduction bill shall occur without 
                        any intervening action or motion, requiring an 
                        affirmative vote of the majority of the 
                        Members, duly chosen and sworn. If the spending 
                        reduction bill is passed, the Clerk of the 
                        House of Representatives shall cause the bill 
                        to be transmitted to the Senate before the 
                        close of the next day of session of the House. 
                        The vote on passage on both spending reduction 
                        bills shall occur not later than 1 month after 
                        the date on which a spending reduction bill is 
                        reported or discharged from all committees to 
                        which it was referred.
                            ``(vii) Vote.--The House Committee on Rules 
                        may not report a rule or order that would have 
                        the effect of causing a spending reduction bill 
                        to be approved by a vote of less than the 
                        majority of the Members, duly chosen and sworn.
                    ``(B) Fast track consideration in senate.--
                            ``(i) In general.--Notwithstanding Rule 
                        XXII of the Standing Rules of the Senate, it is 
                        in order, not later than 2 days of session 
                        after the date on which a spending reduction 
                        bill is reported or discharged from all 
                        committees to which it was referred, for the 
                        majority leader of the Senate or the majority 
                        leader's designee to move to proceed to the 
                        consideration of a spending reduction bill. It 
                        shall also be in order for any Member of the 
                        Senate to move to proceed to the consideration 
                        of a spending reduction bill at any time after 
                        the conclusion of such 2-day period. A motion 
                        to proceed is in order even though a previous 
                        motion to the same effect has been disagreed 
                        to. All points of order against the motion to 
                        proceed to a spending reduction bill are 
                        waived. The motion to proceed is not debatable. 
                        The motion is not subject to a motion to 
                        postpone. A motion to reconsider the vote by 
                        which the motion is agreed to or disagreed to 
                        shall not be in order. If a motion to proceed 
                        to the consideration of a spending reduction 
                        bill is agreed to, the spending reduction bill 
                        shall remain the unfinished business until 
                        disposed of.
                            ``(ii) Debate.--All points of order against 
                        a spending reduction bill and against 
                        consideration of a spending reduction bill are 
                        waived. Consideration of a spending reduction 
                        bill and of all debatable motions and appeals 
                        in connection therewith shall not exceed a 
                        total of 100 hours. Debate shall be divided 
                        equally between the majority and minority 
                        leaders or their designees. A motion further to 
                        limit debate on a spending reduction bill is in 
                        order, shall require an affirmative vote of the 
                        majority of the Members duly chosen and sworn, 
                        and is not debatable. Any debatable motion or 
                        appeal is debatable for not to exceed 1 hour, 
                        to be divided equally between those favoring 
                        and those opposing the motion or appeal. All 
                        time used for consideration of a spending 
                        reduction bill, including time used for quorum 
                        calls and voting, shall be counted against the 
                        total 100 hours of consideration.
                            ``(iii) No amendments.--An amendment to a 
                        spending reduction bill, or a motion to 
                        postpone, or a motion to proceed to the 
                        consideration of other business, or a motion to 
                        recommit the spending reduction bill, is not in 
                        order.
                            ``(iv) Vote on passage.--The vote on 
                        passage shall occur immediately following the 
                        conclusion of the debate on a spending 
                        reduction bill, and a single quorum call at the 
                        conclusion of the debate if requested. Passage 
                        shall require an affirmative vote of the 
                        majority of the Members, duly chosen and sworn. 
                        The vote on passage shall of both spending 
                        reduction bills shall occur not later than 1 
                        month after the date on which a spending 
                        reduction bill is reported or discharged from 
                        all committees to which it was referred.
                            ``(v) Adjournment.--If, after 1 month from 
                        the date on which a spending reduction bill is 
                        reported or discharged from all committees to 
                        which it was referred, either House has failed 
                        to adopt a motion to proceed to the spending 
                        reduction bill, paragraph (1)(A)(ii)(II) shall 
                        not apply.
                            ``(vi) Rulings of the chair on procedure.--
                        Appeals from the decisions of the Chair 
                        relating to the application of the rules of the 
                        Senate, as the case may be, to the procedure 
                        relating to a spending reduction bill shall be 
                        decided without debate.
                    ``(C) Rules to coordinate action with other 
                house.--
                            ``(i) Referral.--If, before the passage by 
                        1 House of a spending reduction bill of that 
                        House, that House receives from the other House 
                        a spending reduction bill, then the spending 
                        reduction bill of the other House shall not be 
                        referred to a committee and shall immediately 
                        be placed on the calendar.
                            ``(ii) Procedure.--If the Senate receives 
                        the spending reduction bill passed by the House 
                        of Representatives before the Senate has voted 
                        on passage of the spending reduction bill--
                                    ``(I) the procedure in the Senate 
                                shall be the same as if no spending 
                                reduction bill had been received from 
                                House of Representatives; and
                                    ``(II) the vote on passage in the 
                                Senate shall be on the spending 
                                reduction bill of the House of 
                                Representatives.
                            ``(iii) Treatment of spending reduction 
                        bill of other house.--If 1 House fails to 
                        introduce or consider a spending reduction bill 
                        under this section, the spending reduction bill 
                        of the other House shall be entitled to 
                        expedited floor procedures under this section.
                            ``(iv) Treatment of companion measures in 
                        the senate.--If following passage of the 
                        spending reduction bill in the Senate, the 
                        Senate then receives the spending reduction 
                        bill from the House of Representatives, the 
                        House-passed spending reduction bill shall not 
                        be debatable. The vote on passage of the 
                        spending reduction bill in the Senate shall be 
                        considered to be the vote on passage of the 
                        spending reduction bill received from the House 
                        of Representatives.
                            ``(v) Vetoes.--If the President vetoes the 
                        spending reduction bill, debate on a veto 
                        message in the Senate under this section shall 
                        be 1 hour equally divided between the majority 
                        and minority leaders or their designees.
            ``(3) Suspension.--No motion to suspend the application of 
        this subsection shall be in order in the Senate or in the House 
        of Representatives.''.
    (b) Low-Growth Amendment.--Amend section 258(b) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 to read as follows:
    ``(b) Suspension of Sequestration Procedures.--Upon the enactment 
of a declaration of war or a joint resolution described in subsection 
(a)--
            ``(1) the subsequent issuance of any sequestration report 
        to enforce the spending limits in section 252B or the Deficit 
        Limits in section 253 order is precluded;
            ``(2) sections 302(f), 310(d), 311(a), of the Congressional 
        Budget Act of 1974 are suspended; and
            ``(3) section 1103 of title 31, United States Code, is 
        suspended.''.
    (c) Technical and Conforming Amendments.--(1) Repeals.--Section 255 
of the Balanced Budget and Emergency Deficit Control Act of 1985 is 
repealed.
    (2) Conforming Amendment.--The item relating to section 256 in the 
table of contents set forth in section 250(a) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended to read as 
follows:

``Sec. 256. Spending reduction order.''.

                  TITLE IV--LEGISLATIVE LINE-ITEM VETO

SEC. 401. SHORT TITLE.

    This subtitle may be cited as the ``Legislative Line-Item Veto Act 
of 2009''.

SEC. 402. LEGISLATIVE LINE-ITEM VETO.

    (a) In General.--Title X of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.) is amended by 
striking all of part B (except for sections 1016 and 1013, which are 
redesignated as sections 1020 and 1021, respectively) and part C and 
inserting the following:

                  ``Part B--Legislative Line-Item Veto

                       ``line-item veto authority

    ``Sec. 1011.  (a) Proposed Cancellations.--Within 45 calendar days 
after the enactment of any bill or joint resolution providing any 
discretionary budget authority, item of direct spending, limited tariff 
benefit, or targeted tax benefit, the President may propose, in the 
manner provided in subsection (b), the cancellation of any dollar 
amount of such discretionary budget authority, item of direct spending, 
or targeted tax benefit. If the 45 calendar-day period expires during a 
period where either House of Congress stands adjourned sine die at the 
end of a Congress or for a period greater than 45 calendar days, the 
President may propose a cancellation under this section and transmit a 
special message under subsection (b) on the first calendar day of 
session following such a period of adjournment.
    ``(b) Transmittal of Special Message.--
            ``(1) Special message.--
                    ``(A) In general.--The President may transmit to 
                the Congress a special message proposing to cancel any 
                dollar amounts of discretionary budget authority, items 
                of direct spending, limited tariff benefits, or 
                targeted tax benefits.
                    ``(B) Contents of special message.--Each special 
                message shall specify, with respect to the 
                discretionary budget authority, items of direct 
                spending proposed, limited tariff benefits, or targeted 
                tax benefits to be canceled--
                            ``(i) the dollar amount of discretionary 
                        budget authority, the specific item of direct 
                        spending (that OMB, after consultation with 
                        CBO, estimates to increase budget authority or 
                        outlays as required by section 1017(9)), the 
                        limited tariff benefit, or the targeted tax 
                        benefit that the President proposes be 
                        canceled;
                            ``(ii) any account, department, or 
                        establishment of the Government to which such 
                        discretionary budget authority is available for 
                        obligation, and the specific project or 
                        governmental functions involved;
                            ``(iii) the reasons why such discretionary 
                        budget authority, item of direct spending, 
                        limited tariff benefit, or targeted tax benefit 
                        should be canceled;
                            ``(iv) to the maximum extent practicable, 
                        the estimated fiscal, economic, and budgetary 
                        effect (including the effect on outlays and 
                        receipts in each fiscal year) of the proposed 
                        cancellation;
                            ``(v) to the maximum extent practicable, 
                        all facts, circumstances, and considerations 
                        relating to or bearing upon the proposed 
                        cancellation and the decision to propose the 
                        cancellation, and the estimated effect of the 
                        proposed cancellation upon the objects, 
                        purposes, or programs for which the 
                        discretionary budget authority, item of direct 
                        spending, limited tariff benefit, or the 
                        targeted tax benefit is provided;
                            ``(vi) a numbered list of cancellations to 
                        be included in an approval bill that, if 
                        enacted, cancels discretionary budget 
                        authority, items of direct spending, limited 
                        tariff benefit, or targeted tax benefits 
                        proposed in that special message; and
                            ``(vii) if the special message is 
                        transmitted subsequent to or at the same time 
                        as another special message, a detailed 
                        explanation why the proposed cancellations are 
                        not substantially similar to any other proposed 
                        cancellation in such other message.
                    ``(C) Duplicative proposals prohibited.--The 
                President may not propose to cancel the same or 
                substantially similar discretionary budget authority, 
                item of direct spending, limited tariff benefit, or 
                targeted tax benefit more than one time under this Act.
                    ``(D) Maximum number of special messages.--The 
                President may not transmit to the Congress more than 5 
                special messages under this subsection related to any 
                bill or joint resolution described in subsection (a), 
                but may transmit not more than 10 special messages for 
                any omnibus budget reconciliation or appropriation 
                measure.
            ``(2) Enactment of approval bill.--
                    ``(A) Deficit reduction.--Amounts of budget 
                authority, items of direct spending, limited tariff 
                benefit, or targeted tax benefits which are canceled 
                pursuant to enactment of a bill as provided under this 
                section shall be dedicated only to reducing the deficit 
                or increasing the surplus.
                    ``(B) Adjustment of levels in the joint resolution 
                on the budget.--Not later than 5 days after the date of 
                enactment of an approval bill as provided under this 
                section, the chairs of the Committees on the Budget of 
                the Senate and the House of Representatives shall 
                revise allocations and aggregates and other appropriate 
                levels under the appropriate joint resolution on the 
                budget to reflect the cancellation, and the applicable 
                committees shall report revised suballocations pursuant 
                to section 302(b), as appropriate.
                    ``(C) Adjustments to statutory limits.--After 
                enactment of an approval bill as provided under this 
                section, the Office of Management and Budget shall 
                revise applicable limits under the Balanced Budget and 
                Emergency Deficit Control Act of 1985, as appropriate.
                    ``(D) Trust funds and special funds.--
                Notwithstanding subparagraph (A), nothing in this part 
                shall be construed to require or allow the deposit of 
                amounts derived from a trust fund or special fund which 
                are canceled pursuant to enactment of a bill as 
                provided under this section to any other fund.

                ``procedures for expedited consideration

    ``Sec. 1012.  (a) Expedited Consideration.--
            ``(1) In general.--The majority leader or minority leader 
        of each House or his designee shall (by request) introduce an 
        approval bill as defined in section 1017 not later than the 
        third day of session of that House after the date of receipt of 
        a special message transmitted to the Congress under section 
        1011(b). If the bill is not introduced as provided in the 
        preceding sentence in either House, then, on the fourth day of 
        session of that House after the date of receipt of the special 
        message, any Member of that House may introduce the bill.
            ``(2) Consideration in the house of representatives.--
                    ``(A) Referral and reporting.--Any committee of the 
                House of Representatives to which an approval bill is 
                referred shall report it to the House of 
                Representatives without amendment not later than the 
                seventh legislative day after the date of its 
                introduction. If a committee fails to report the bill 
                within that period or the House of Representatives has 
                adopted a joint resolution providing for adjournment 
                sine die at the end of a Congress, such committee shall 
                be automatically discharged from further consideration 
                of the bill and it shall be placed on the appropriate 
                calendar.
                    ``(B) Proceeding to consideration.--After an 
                approval bill is reported by or discharged from 
                committee or the House of Representatives has adopted a 
                joint resolution providing for adjournment sine die at 
                the end of a Congress, it shall be in order to move to 
                proceed to consider the approval bill in the House of 
                Representatives within two legislative days after the 
                day on which the proponent announces his intention to 
                offer the motion. Such a motion shall not be in order 
                after the House of Representatives has disposed of a 
                motion to proceed with respect to that special message. 
                The previous question shall be considered as ordered on 
                the motion to its adoption without intervening motion. 
                A motion to reconsider the vote by which the motion is 
                disposed of shall not be in order.
                    ``(C) Consideration.--The approval bill shall be 
                considered as read. All points of order against an 
                approval bill and against its consideration are waived. 
                The previous question shall be considered as ordered on 
                an approval bill to its passage without intervening 
                motion except five hours of debate equally divided and 
                controlled by the proponent and an opponent and one 
                motion to limit debate on the bill. A motion to 
                reconsider the vote on passage of the bill shall not be 
                in order.
                    ``(D) Senate bill.--An approval bill received from 
                the Senate shall not be referred to committee.
            ``(3) Consideration in the senate.--
                    ``(A) Motion to proceed to consideration.--A motion 
                to proceed to the consideration of a bill under this 
                subsection in the Senate shall not be debatable. It 
                shall not be in order to move to reconsider the vote by 
                which the motion to proceed is agreed to or disagreed 
                to.
                    ``(B) Limits on debate.--Debate in the Senate on a 
                bill under this subsection, and all debatable motions 
                and appeals in connection therewith (including debate 
                pursuant to subparagraph (D)), shall not exceed 10 
                hours, equally divided and controlled in the usual 
                form.
                    ``(C) Appeals.--Debate in the Senate on any 
                debatable motion or appeal in connection with a bill 
                under this subsection shall be limited to not more than 
                1 hour, to be equally divided and controlled in the 
                usual form.
                    ``(D) Motion to limit debate.--A motion in the 
                Senate to further limit debate on a bill under this 
                subsection is not debatable.
                    ``(E) Motion to recommit.--A motion to recommit a 
                bill under this subsection is not in order.
                    ``(F) Consideration of the house of representatives 
                bill.--
                            ``(i) In general.--If the Senate has 
                        received the House of Representatives companion 
                        bill to the bill introduced in the Senate prior 
                        to the vote required under paragraph (1)(C), 
                        then the Senate may consider, and the vote 
                        under paragraph (1)(c) may occur on, the House 
                        of Representatives companion bill.
                            ``(ii) Procedure after vote on senate 
                        bill.--If the Senate votes, pursuant to 
                        paragraph (1)(C), on the bill introduced in the 
                        Senate, then immediately following that vote, 
                        or upon receipt of the House of Representatives 
                        companion bill, the House of Representatives 
                        bill shall be deemed to be considered, read the 
                        third time, and the vote on passage of the 
                        Senate bill shall be considered to be the vote 
                        on the bill received from the House of 
                        Representatives.
    ``(b) Amendments Prohibited.--No amendment to, or motion to strike 
a provision from, a bill considered under this section shall be in 
order in either the Senate or the House of Representatives.

                   ``presidential deferral authority

    ``Sec. 1013.  (a) Temporary Presidential Authority To Withhold 
Discretionary Budget Authority.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may direct that any dollar amount of 
        discretionary budget authority to be canceled in that special 
        message shall not be made available for obligation for a period 
        not to exceed 45 calendar days from the date the President 
        transmits the special message to the Congress.
            ``(2) Early availability.--The President shall make any 
        dollar amount of discretionary budget authority deferred 
        pursuant to paragraph (1) available at a time earlier than the 
        time specified if he determines that continuation of the 
        deferral not further the purposes of this Act.
    ``(b) Temporary Presidential Authority To Suspend Direct 
Spending.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        item of direct spending proposed to be canceled in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any item of direct spending at a time earlier 
        than the time specified if he determines that continuation of 
        the suspension will not further the purposes of this Act.
    ``(c) Temporary Presidential Authority To Suspend a Limited Tariff 
Benefit.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        limited tariff benefit proposed to be canceled in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any limited tariff benefit at a time earlier 
        than the time specified if he determines that continuation of 
        the suspension will not further the purposes of this Act.
    ``(d) Temporary Presidential Authority To Suspend a Targeted Tax 
Benefit.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        targeted tax benefit proposed to be repealed in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any targeted tax benefit at a time earlier 
        than the time specified if he determines that continuation of 
        the suspension will not further the purposes of this Act.
    ``(e) Extension of 45-Day Period.--The President may transmit to 
the Congress not more than one supplemental special message to extend 
the period to suspend the implementation of any discretionary budget 
authority, item of direct spending, limited tariff benefit, or targeted 
tax benefit, as applicable, by an additional 45 calendar days. Any such 
supplemental message may not be transmitted to the Congress before the 
40th day of the 45-day period set forth in the preceding message or 
later than the last day of such period.

               ``identification of targeted tax benefits

    ``Sec. 1014.  (a) Statement.--The chairman of the Committee on Ways 
and Means of the House of Representatives and the chairman of the 
Committee on Finance of the Senate acting jointly (hereafter in this 
subsection referred to as the `chairmen') shall review any revenue or 
reconciliation bill or joint resolution which includes any amendment to 
the Internal Revenue Code of 1986 that is being prepared for filing by 
a committee of conference of the two Houses, and shall identify whether 
such bill or joint resolution contains any targeted tax benefits. The 
chairmen shall provide to the committee of conference a statement 
identifying any such targeted tax benefits or declaring that the bill 
or joint resolution does not contain any targeted tax benefits. Any 
such statement shall be made available to any Member of Congress by the 
chairmen immediately upon request.
    ``(b) Statement Included in Legislation.--
            ``(1) In general.--Notwithstanding any other rule of the 
        House of Representatives or any rule or precedent of the 
        Senate, any revenue or reconciliation bill or joint resolution 
        which includes any amendment to the Internal Revenue Code of 
        1986 reported by a committee of conference of the two Houses 
        may include, as a separate section of such bill or joint 
        resolution, the information contained in the statement of the 
        chairmen, but only in the manner set forth in paragraph (2).
            ``(2) Applicability.--The separate section permitted under 
        subparagraph (A) shall read as follows: `Section 1021 of the 
        Congressional Budget and Impoundment Control Act of 1974 shall 
        ______ apply to ________.', with the blank spaces being filled 
        in with--
                    ``(A) in any case in which the chairmen identify 
                targeted tax benefits in the statement required under 
                subsection (a), the word `only' in the first blank 
                space and a list of all of the specific provisions of 
                the bill or joint resolution in the second blank space; 
                or
                    ``(B) in any case in which the chairmen declare 
                that there are no targeted tax benefits in the 
                statement required under subsection (a), the word `not' 
                in the first blank space and the phrase `any provision 
                of this Act' in the second blank space.
    ``(c) Identification in Revenue Estimate.--With respect to any 
revenue or reconciliation bill or joint resolution with respect to 
which the chairmen provide a statement under subsection (a), the Joint 
Committee on Taxation shall--
            ``(1) in the case of a statement described in subsection 
        (b)(2)(A), list the targeted tax benefits in any revenue 
        estimate prepared by the Joint Committee on Taxation for any 
        conference report which accompanies such bill or joint 
        resolution, or
            ``(2) in the case of a statement described in 13 subsection 
        (b)(2)(B), indicate in such revenue estimate that no provision 
        in such bill or joint resolution has been identified as a 
        targeted tax benefit.
    ``(d) President's Authority.--If any revenue or reconciliation bill 
or joint resolution is signed into law--
            ``(1) with a separate section described in subsection 
        (b)(2), then the President may use the authority granted in 
        this section only with respect to any targeted tax benefit in 
        that law, if any, identified in such separate section; or
            ``(2) without a separate section described in subsection 
        (b)(2), then the President may use the authority granted in 
        this section with respect to any targeted tax benefit in that 
        law.

                      ``treatment of cancellations

    ``Sec. 1015. The cancellation of any dollar amount of discretionary 
budget authority, item of direct spending, limited tariff benefit, or 
targeted tax benefit shall take effect only upon enactment of the 
applicable approval bill. If an approval bill is not enacted into law 
before the end of the applicable period under section 1013, then all 
proposed cancellations contained in that bill shall be null and void 
and any such dollar amount of discretionary budget authority, item of 
direct spending, limited tariff benefit, or targeted tax benefit shall 
be effective as of the original date provided in the law to which the 
proposed cancellations applied.

                    ``reports by comptroller general

    ``Sec. 1016. With respect to each special message under this part, 
the Comptroller General shall issue to the Congress a report 
determining whether any discretionary budget authority is not made 
available for obligation or item of direct spending, limited tariff 
benefit, or targeted tax benefit continues to be suspended after the 
deferral authority set forth in section 1013 of the President has 
expired.

                             ``definitions

    ``Sec. 1017. As used in this part:
            ``(1) Appropriation law.--The term `appropriation law' 
        means an Act referred to in section 105 of title 1, United 
        States Code, including any general or special appropriation 
        Act, or any Act making supplemental, deficiency, or continuing 
        appropriations, that has been signed into law pursuant to 
        Article I, section 7, of the Constitution of the United States.
            ``(2) Approval bill.--The term `approval bill' means a bill 
        or joint resolution which only approves proposed cancellations 
        of dollar amounts of discretionary budget authority, items of 
        new direct spending, limited tariff benefits, or targeted tax 
        benefits in a special message transmitted by the President 
        under this part and--
                    ``(A) the title of which is as follows: `A bill 
                approving the proposed cancellations transmitted by the 
                President on ___', the blank space being filled in with 
                the date of transmission of the relevant special 
                message and the public law number to which the message 
                relates;
                    ``(B) which does not have a preamble;
                    ``(C) which provides only the following after the 
                enacting clause: `That the Congress approves of 
                proposed cancellations ___', the blank space being 
                filled in with a list of the cancellations contained in 
                the President's special message, `as transmitted by the 
                President in a special message on ____', the blank 
                space being filled in with the appropriate date, 
                `regarding ____.', the blank space being filled in with 
                the public law number to which the special message 
                relates;
                    ``(D) which only includes proposed cancellations 
                that are estimated by CBO to meet the definition of 
                discretionary budgetary authority or items of direct 
                spending, or limited tariff benefits, or that are 
                identified as targeted tax benefits pursuant to section 
                1014;
                    ``(E) if any proposed cancellation other than 
                discretionary budget authority or targeted tax benefits 
                is estimated by CBO to not meet the definition of item 
                of direct spending, then the approval bill shall 
                include at the end: `The President shall cease the 
                suspension of the implementation of the following under 
                section 1013 of the Impoundment Control Act of 1974: 
                _____', the blank space being filled in with the list 
                of such proposed cancellations; and
                    ``(F) if no CBO estimate is available, then the 
                entire list of legislative provisions proposed by the 
                President is inserted in the second blank space in 
                subparagraph (C).
            ``(3) Calendar day.--The term `calendar day' means a 
        standard 24-hour period beginning at midnight.
            ``(4) Cancel or cancellation.--The terms `cancel' or 
        `cancellation' means to prevent--
                    ``(A) budget authority from having legal force or 
                effect;
                    ``(B) in the case of entitlement authority, to 
                prevent the specific legal obligation of the United 
                States from having legal force or effect;
                    ``(C) in the case of the food stamp program, to 
                prevent the specific provision of law that provides 
                such benefit from having legal force or effect;
                    ``(D) a limited tariff benefit from having legal 
                force or effect, and to make any necessary, conforming 
                statutory change to ensure that such limited tariff 
                benefit is not implemented; or
                    ``(E) a targeted tax benefit from having legal 
                force or effect, and to make any necessary, conforming 
                statutory change to ensure that such targeted tax 
                benefit is not implemented and that any budgetary 
                resources are appropriately canceled.
            ``(5) Congressional budget office.--The term `CBO' means 
        the Director of the Congressional Budget Office.
            ``(6) Direct spending.--The term `direct spending' means--
                    ``(A) budget authority provided by law (other than 
                an appropriation law);
                    ``(B) entitlement authority; and
                    ``(C) the food stamp program.
            ``(7) Amount of discretionary budget authority.--(A) Except 
        as provided in subparagraph (B), the term `dollar amount of 
        discretionary budget authority' means the entire dollar amount 
        of budget authority--
                            ``(i) specified in an appropriation law, or 
                        the entire dollar amount of budget authority or 
                        obligation limitation required to be allocated 
                        by a specific proviso in an appropriation law 
                        for which a specific dollar figure was not 
                        included;
                            ``(ii) represented separately in any table, 
                        chart, or explanatory text included in the 
                        statement of managers or the governing 
                        committee report accompanying such law;
                            ``(iii) required to be allocated for a 
                        specific program, project, or activity in a law 
                        (other than an appropriation law) that mandates 
                        the expenditure of budget authority from 
                        accounts, programs, projects, or activities for 
                        which budget authority is provided in an 
                        appropriation law;
                            ``(iv) represented by the product of the 
                        estimated procurement cost and the total 
                        quantity of items specified in an appropriation 
                        law or included in the statement of managers or 
                        the governing committee report accompanying 
                        such law; or
                            ``(v) represented by the product of the 
                        estimated procurement cost and the total 
                        quantity of items required to be provided in a 
                        law (other than an appropriation law) that 
                        mandates the expenditure of budget authority 
                        from accounts, programs, projects, or 
                        activities for which budget authority is 
                        provided in an appropriation law.
                    ``(B) The term `dollar amount of discretionary 
                budget authority' does not include--
                            ``(i) direct spending;
                            ``(ii) budget authority in an appropriation 
                        law which funds direct spending provided for in 
                        other law;
                            ``(iii) any existing budget authority 
                        canceled in an appropriation law; or
                            ``(iv) any restriction, condition, or 
                        limitation in an appropriation law or the 
                        accompanying statement of managers or committee 
                        reports on the expenditure of budget authority 
                        for an account, program, project, or activity, 
                        or on activities involving such expenditure.
            ``(8) Item of direct spending.--The term `item of direct 
        spending' means any provision of law that results in an 
        increase in budget authority or outlays for direct spending 
        relative to the most recent levels calculated consistent with 
        the methodology used to calculate a baseline under section 257 
        of the Balanced Budget and Emergency Deficit Control Act of 
        1985 and included with a budget submission under section 
        1105(a) of title 31, United States Code, in the first year or 
        the 5-year period for which the item is effective. However, 
        such item does not include an extension or reauthorization of 
        existing direct spending, but instead only refers to provisions 
        of law that increase such direct spending.
            ``(9) Limited tariff benefit.--The term `limited tariff 
        benefit' means any provision of law that modifies the 
        Harmonized Tariff Schedule of the United States in a manner 
        that benefits 10 or fewer entities (as defined in paragraph 
        (12)(B)).
            ``(10) OMB.--The term `OMB' means the Director of the 
        Office of Management and Budget.
            ``(11) Omnibus reconciliation or appropriation measure.--
        The term `omnibus reconciliation or appropriation measure' 
        means--
                    ``(A) in the case of a reconciliation bill, any 
                such bill that is reported to its House by the 
                Committee on the Budget; or
                    ``(B) in the case of an appropriation measure, any 
                such measure that provides appropriations for programs, 
                projects, or activities falling within 2 or more 
                section 302(b) suballocations.
            ``(12) Targeted tax benefit.--(A) The term `targeted tax 
        benefit' means any revenue-losing provision that provides a 
        Federal tax deduction, credit, exclusion, or preference to ten 
        or fewer beneficiaries (determined with respect to either 
        present law or any provision of which the provision is a part) 
        under the Internal Revenue Code of 1986 in any year for which 
        the provision is in effect;
                    ``(B) for purposes of subparagraph (A)--
                            ``(i) all businesses and associations that 
                        are members of the same controlled group of 
                        corporations (as defined in section 1563(a) of 
                        the Internal Revenue Code of 1986) shall be 
                        treated as a single beneficiary;
                            ``(ii) all shareholders, partners, members, 
                        or beneficiaries of a corporation, partnership, 
                        association, or trust or estate, respectively, 
                        shall be treated as a single beneficiary;
                            ``(iii) all employees of an employer shall 
                        be treated as a single beneficiary;
                            ``(iv) all qualified plans of an employer 
                        shall be treated as a single beneficiary;
                            ``(v) all beneficiaries of a qualified plan 
                        shall be treated as a single beneficiary;
                            ``(vi) all contributors to a charitable 
                        organization shall be treated as a single 
                        beneficiary;
                            ``(vii) all holders of the same bond issue 
                        shall be treated as a single beneficiary; and
                            ``(viii) if a corporation, partnership, 
                        association, trust or estate is the beneficiary 
                        of a provision, the shareholders of the 
                        corporation, the partners of the partnership, 
                        the members of the association, or the 
                        beneficiaries of the trust or estate shall not 
                        also be treated as beneficiaries of such 
                        provision;
                    ``(C) for the purpose of this paragraph, the term 
                `revenue-losing provision' means any provision that is 
                estimated to result in a reduction in Federal tax 
                revenues (determined with respect to either present law 
                or any provision of which the provision is a part) for 
                any one of the two following periods--
                            ``(i) the first fiscal year for which the 
                        provision is effective; or
                            ``(ii) the period of the five fiscal years 
                        beginning with the first fiscal year for which 
                        the provision is effective;
                    ``(D) the term `targeted tax benefit' does not 
                include any provision which applies uniformly to an 
                entire industry; and
                    ``(E) the terms used in this paragraph shall have 
                the same meaning as those terms have generally in the 
                Internal Revenue Code of 1986, unless otherwise 
                expressly provided.

                              ``expiration

    ``Sec. 1018. This title shall have no force or effect on or after 
October 1, 2019.

                          ``deficit reduction

    ``Sec. 1019. All spending reductions related to this title shall be 
for deficit reduction.''.

SEC. 403. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Exercise of Rulemaking Powers.--Section 904 of the 
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended--
            (1) in subsection (a), by striking ``1017'' and inserting 
        ``1012''; and
            (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``section 1012''.
    (b) Analysis by Congressional Budget Office.--Section 402 of the 
Congressional Budget Act of 1974 is amended by inserting ``(a)'' after 
``402.'' and by adding at the end the following new subsection:
    ``(b) Upon the receipt of a special message under section 1011 
proposing to cancel any item of direct spending, the Director of the 
Congressional Budget Office shall prepare an estimate of the savings in 
budget authority or outlays resulting from such proposed cancellation 
relative to the most recent levels calculated consistent with the 
methodology used to calculate a baseline under section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 and included 
with a budget submission under section 1105(a) of title 31, United 
States Code, and transmit such estimate to the chairmen of the 
Committees on the Budget of the House of Representatives and Senate.''.
    (c) Clerical Amendments.--(1) Section 1(a) of the Congressional 
Budget and Impoundment Control Act of 1974 is amended by striking the 
last sentence.
    (2) Section 1021(c) of such Act (as redesignated) is amended is 
amended by striking ``rescinded or that is to be reserved'' and insert 
``canceled'' and by striking ``1012'' and inserting ``1011''.
    (3) Table of Contents.--The table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Control Act of 1974 is 
amended by deleting the contents for parts B and C of title X and 
inserting the following:

                  ``Part B--Legislative Line-Item Veto

``Sec. 1011. Line-item veto authority.
``Sec. 1012. Procedures for expedited consideration.
``Sec. 1013. Presidential deferral authority.
``Sec. 1014. Identification of targeted tax benefits.
``Sec. 1015. Treatment of cancellations.
``Sec. 1016. Reports by Comptroller General.
``Sec. 1017. Definitions.
``Sec. 1018. Expiration.
``Sec. 1019. Deficit reduction.
``Sec. 1020. Suits by Comptroller General.
``Sec. 1021. Proposed deferrals of budget authority.''.
    (d) Effective Date.--The amendments made by this subtitle shall 
take effect on the date of its enactment and apply only to any dollar 
amount of discretionary budget authority, item of direct spending, or 
targeted tax benefit provided in an Act enacted on or after the date of 
enactment of this Act.

SEC. 404. RESCISSION MEASURES CONSIDERED.

    (a) Rules Amendment.--Clause 6(c) of rule XIII of the Rules of the 
House of Representatives is amended by inserting before the period ``, 
or a rule or order that limits any amendment otherwise in order to a 
rescission bill''.
    (b) Automatic Allocations Reductions.--Clause 4(b) of rule X of the 
Rules of the House of Representatives is amended by inserting ``(1)'' 
after ``(b)'', by redesignating subparagraphs (1) through (6) as 
subdivisions (A) through (F), respectively, and by adding at the end 
the following:
    ``(2)(A) Whenever a rescission bill passes the House of 
Representatives, the Committee on the Budget shall immediately reduce 
the applicable allocations under section 302(a) of the Congressional 
Budget Act of 1974 by the total amount of reductions in budget 
authority and in outlays resulting from such rescission bill.
    ``(B) As used in this subparagraph, the term `rescission bill' 
means a bill or joint resolution which only rescinds, in whole or in 
part, budget authority and which includes only titles corresponding to 
the most recently enacted appropriation bills that continue to include 
unobligated balances.''.
    (c) Privileged Discharge Resolutions.--Rule XIII of the Rules of 
the House of Representatives is amended by adding at the end the 
following new clause:
    ``8. (a) By February 1, May 1, July 30, and November 11 of each 
session, the majority leader shall introduce a rescission bill. If such 
bill is not introduced by that date, then whenever a rescission bill is 
introduced during a session on or after that date, a motion to 
discharge the committee from its consideration shall be privileged 
after the 10-legislative day period beginning on that date for the 
first 5 such bills.
    ``(b) It shall not be in order to offer any amendment to a 
rescission bill except an amendment that increases the amount of budget 
authority that such bill rescinds.
    ``(c) As used in this clause and in clause 6, the term `rescission 
bill' has the meaning given such term in clause 4(b)(2)(B) of rule 
X.''.
    (d) Point of Order.--Rule XXI of the Rules of the House of 
Representatives (as amended by subsection (d)) is further amended by 
adding at the end the following new clause:
    ``9. It shall not be in order to consider any rescission bill, or 
conference report thereon or amendment thereto, unless--
            ``(1) in the case of such bill or conference report 
        thereon, it is made available to Members and the general public 
        on the Internet for at least 48 hours before its consideration; 
        or
            ``(2)(A) in the case of an amendment to such rescission 
        bill made in order by a rule, it is made available to Members 
        and the general public on the Internet within one hour after 
        the rule is filed; or
            ``(B) in the case of an amendment under an open rule, it is 
        made available to Members and the general public on the 
        Internet immediately after being offered; in a format that is 
        searchable and sortable.
            ``(3) No amendment to an amendment to a rescission bill 
        shall be in order unless germane to the amendment to which it 
        is offered.''.

               TITLE V--BIENNIAL BUDGET DEFICIT REDUCTION

SEC. 501. JOINT COMMITTEE ON DEFICIT REDUCTION.

    (a) Establishment and Composition.--
            (1) In general.--There is established a Joint Committee on 
        Deficit Reduction (referred to in this Act as the ``joint 
        committee'') to be composed of 20 members as follows:
                    (A) Ten Members of the House of Representatives, 
                including 5 members appointed from the majority party 
                by the Speaker of the House and 5 members from the 
                minority party to be appointed by the minority leader.
                    (B) Ten Members of the Senate, including 5 members 
                appointed from the majority party by the majority 
                leader of the Senate and 5 members from the minority 
                party to be appointed by the minority leader.
            (2) Vacancy.--A vacancy in the joint committee shall not 
        affect the power of the remaining members to execute the 
        functions of the joint committee, and shall be filled in the 
        same manner as the original selection.
            (3) Agreement.--No recommendation shall be made by the 
        joint committee except upon the majority vote of the members 
        from each House, respectively.
            (4) Public meetings.--The joint committee shall hold not 
        fewer than 5 public hearings in preparing legislation as 
        required under section 6002.
    (b) Duties.--The joint committee shall be responsible for reporting 
biennial legislation as provided in section 6002.
    (c) Resources.--The joint committee may utilize the resources of 
the House and Senate.

SEC. 502. BIENNIAL BUDGET DEFICIT REDUCTION LEGISLATION.

    (a) Agency Reports.--Not later than June 1st of each odd numbered 
year, the Government Accountability Office and Congressional Budget 
Office shall report to the joint committee--
            (1) recommendations for eliminating waste, fraud, abuse, 
        and ineffective, duplicative, or outdated Government programs 
        and recommendations for streamlining, consolidating, or 
        eliminating wasteful Government programs; and
            (2) the projected savings of the recommendations over a 10-
        year period.
    (b) Deficit Reduction Target.--In this section, the term ``deficit 
reduction target'' means 10 percent of the previous year's budget 
deficit, not exceeding 5 percent of the previous year's total outlays 
and not less than 1 percent of the previous year's total outlays.
    (c) Legislation.--
            (1) Introduction.--Not later than July 15th of each odd 
        numbered year, the chairman or ranking member of the joint 
        committee or their designees shall introduce legislation 
        (referred to in this Act as the ``legislation'') which shall be 
        referred to the joint committee--
                    (A) to eliminate or reduce spending on wasteful, 
                fraudulent, abusive, ineffective, duplicative, or 
                outdated Government programs; and
                    (B) that achieves a savings equal to or greater 
                than the deficit reduction target.
            (2) Discharge.--After the legislation is introduced and 
        made public for at least 72 hours, the joint committee shall 
        discharge the legislation not later than 2 weeks after 
        introduction to the House and the Senate and report the 
        legislation with a favorable recommendation, unfavorable 
        recommendation, or no recommendation.
            (3) Consideration.--Once the legislation is discharged from 
        the joint committee, it shall be in order in the House or the 
        Senate, as appropriate, to move to the legislation not later 
        than September 15th of the year of introduction. The 
        legislation shall not be subject to amendment or points of 
        order. Debate on the legislation shall be limited to 20 hours 
        in the Senate and 3 hours in the House.
            (4) Other house.--Upon passage of legislation in the House 
        or the Senate under paragraph (3), it shall be in order for the 
        other house to move to the respective bill not later than 
        September 25th with the same rules of debate.
            (5) Veto.--If the legislation is vetoed, both the House and 
        the Senate shall vote on whether to override the veto not later 
        than 1 week after the veto.
    (d) Adjustment of Budget Caps.--If legislation is enacted pursuant 
to this title, the Chairmen of the House and Senate Committees on the 
Budget shall reduce the appropriate budgetary allocations and levels in 
the most recently enacted budget resolution to reflect the reductions 
achieved by such legislation.

          TITLE VI--PAYGO HONESTY WITH RESPECT TO TRUST FUNDS

SEC. 601. PAYGO AND TRUST FUNDS.

    (a) In General.--Any increase in revenues or reduced spending in a 
Federal trust fund resulting from a bill, amendment, resolution, 
motion, or conference report shall--
            (1) not be counted for purposes of offsetting revenues, 
        receipts, or discretionary spending under the Congressional 
        Budget Act of 1974 or the Statutory Pay-As-You-Go Act of 2010; 
        and
            (2) only be used for the purposes of the Federal trust as 
        provided by law.
    (b) Intergovernmental Transfers.--Nothing in this section shall 
impact intergovernmental lending from a Federal trust fund to annual 
government operations.
                                 <all>
```