I 

108TH CONGRESS 

1ST SESSION H. R. 855

To encourage Members of Congress and the executive branch to be honest 

with the public about true on-budget circumstances, to exclude the Social 

Security trust funds and the Medicare hospital insurance trust fund 

from the annual Federal budget baseline, to prohibit Social Security 

and Medicare hospital insurance trust funds surpluses to be used as 

offsets for tax cuts or spending increases, and to exclude the Social 

Security trust funds and the Medicare hospital insurance trust fund 

from official budget surplus/deficit pronouncements. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2003

Mr. SMITH of Washington (for himself, Mr. LARSEN of Washington, and Mr. 

INSLEE) introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committee on Ways and 

Means, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To encourage Members of Congress and the executive branch 

to be honest with the public about true on-budget circumstances, to exclude the Social Security trust funds 

and the Medicare hospital insurance trust fund from 

the annual Federal budget baseline, to prohibit Social 

Security and Medicare hospital insurance trust funds 

surpluses to be used as offsets for tax cuts or spending 

increases, and to exclude the Social Security trust funds 
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and the Medicare hospital insurance trust fund from 

official budget surplus/deficit pronouncements.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Honesty in Budgeting 

5 Act’’. 

6 SEC. 2. SENSE OF HOUSE TO ENCOURAGE HONESTY FOR 

7 MEMBERS OF CONGRESS AND EXECUTIVE 

8 BRANCH OFFICIALS. 

9 It is the sense of the House of Representatives that 

10 Members of Congress, executive branch officials, and their 

11 respective representatives should use on-budget numbers 

12 when making public statements regarding the Federal 

13 budget. 

14 SEC. 3. OFF-BUDGET STATUS OF OASDI AND HI TRUST 

15 FUNDS. 

16 Notwithstanding any other provision of law, the re17 ceipts and disbursements of the Federal Old-Age and Sur18 vivors Insurance Trust Fund, the Federal Disability In19 surance Trust Fund, and the Federal Hospital Insurance 

20 Trust Fund shall not be counted as new budget authority, 

21 outlays, receipts, or deficit or surplus for purposes of—

22 (1) the budget of the United States Govern23 ment as submitted by the President, 

24 (2) the congressional budget, or 
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1 (3) the Balanced Budget and Emergency Def2 icit Control Act of 1985. 

3 SEC. 4. REMOVING SOCIAL SECURITY AND MEDICARE 

4 FROM BUDGET SURPLUS/DEFICIT PRO5 NOUNCEMENTS. 

6 (a) REMOVING SOCIAL SECURITY AND MEDICARE

7 FROM BUDGET SURPLUS/DEFICIT PRONOUNCEMENTS.—

8 Title III of the Congressional Budget Act of 1974 is 

9 amended by adding at the end the following section: 

10 ‘‘REMOVING SOCIAL SECURITY AND MEDICARE FROM

11 BUDGET SURPLUS/DEFICIT PRONOUNCEMENTS

12 ‘‘SEC. 316. (a) SURPLUS OR DEFICIT TOTALS.—Any 

13 official statement issued by the Office of Management and 

14 Budget or by the Congressional Budget Office of surplus 

15 or deficit totals of the budget of the United States Govern16 ment as submitted by the President or of the surplus or 

17 deficit totals of the congressional budget, and any descrip18 tion of, or reference to, such totals in any official publica19 tion or material issued by either of such Offices, shall ex20 clude the receipts and disbursements totals of the old-age 

21 survivors, and disability insurance program under title 2 

22 of the Social Security Act and of the Federal Hospital In23 surance Trust Fund under part A of title 18 of such Act. 

24 The Office of Management and Budget and the Congres25 sional Budget Office shall issue separate reports on the 
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1 outlays and revenues of the Social Security trust funds 

2 and of the Federal Hospital Insurance Trust Fund. 

3 ‘‘(b) PRESENTATION OF BUDGETARY AGGRE4 GATES.—For purposes of chapter 11 of title 31, United 

5 States Code, or this Act, tables and other displays of 

6 budgetary aggregates for the United States Government 

7 of the Director of the Office of Management and Budget 

8 or the Director of the Congressional Budget Office shall 

9 not include receipts or disbursements referred to in sub10 section (a).’’. 

11 (b) CONFORMING AMENDMENT.—The table of con12 tents set forth in section 1(b) of the Congressional Budget 

13 and Impoundment Control Act of 1974 is amended by 

14 adding after the item relating to section 315 the following 

15 new item:

‘‘Sec. 316. Removing Social Security and Medicare from budget surplus/deficit 

pronouncements.’’.

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