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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2920 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2920

   To reinstitute and update the Pay-As-You-Go requirement of budget 
 neutrality on new tax and mandatory spending legislation, enforced by 
             the threat of annual, automatic sequestration.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 17, 2009

Mr. Hoyer (for himself, Mr. George Miller of California, Mr. Hill, Mr. 
Welch, Mr. Spratt, Mr. Altmire, Mr. Andrews, Mr. Arcuri, Mr. Baca, Mr. 
  Baird, Mr. Barrow, Ms. Bean, Mr. Berry, Mr. Bishop of Georgia, Mr. 
   Bishop of New York, Mr. Blumenauer, Mr. Boccieri, Mr. Boren, Mr. 
 Boswell, Mr. Boyd, Mr. Brady of Pennsylvania, Mr. Braley of Iowa, Mr. 
  Bright, Mr. Butterfield, Mrs. Capps, Mr. Cardoza, Mr. Carnahan, Mr. 
Carney, Ms. Castor of Florida, Mr. Chandler, Mr. Childers, Mr. Clyburn, 
  Mr. Connolly of Virginia, Mr. Cooper, Mr. Costa, Mr. Courtney, Mr. 
Crowley, Mr. Cuellar, Mrs. Dahlkemper, Mr. Davis of Alabama, Mr. Davis 
 of Tennessee, Mrs. Davis of California, Ms. DeGette, Ms. DeLauro, Mr. 
Donnelly of Indiana, Mr. Driehaus, Mr. Edwards of Texas, Mr. Ellsworth, 
   Ms. Eshoo, Mr. Etheridge, Mr. Fattah, Mr. Foster, Ms. Fudge, Ms. 
  Giffords, Mr. Gonzalez, Mr. Gordon of Tennessee, Mr. Gene Green of 
   Texas, Mr. Griffith, Mr. Gutierrez, Mrs. Halvorson, Mr. Hare, Ms. 
Harman, Mr. Hastings of Florida, Mr. Heinrich, Ms. Herseth Sandlin, Mr. 
 Higgins, Mr. Himes, Mr. Hodes, Mr. Holden, Mr. Inslee, Mr. Johnson of 
  Georgia, Mr. Kagen, Mr. Kanjorski, Ms. Kilroy, Mrs. Kirkpatrick of 
 Arizona, Mr. Kissell, Mr. Klein of Florida, Ms. Kosmas, Mr. Kratovil, 
Mr. Langevin, Mr. Larsen of Washington, Mr. Larson of Connecticut, Mr. 
Lipinski, Mr. Loebsack, Mr. Lujan, Mr. Lynch, Mr. Maffei, Mrs. Maloney, 
  Ms. Markey of Colorado, Mr. Marshall, Mr. Massa, Mr. Matheson, Ms. 
  Matsui, Ms. McCollum, Mr. McGovern, Mr. McIntyre, Mr. McMahon, Mr. 
McNerney, Mr. Melancon, Mr. Minnick, Mr. Moore of Kansas, Mr. Moran of 
  Virginia, Mr. Patrick J. Murphy of Pennsylvania, Mr. Murphy of New 
York, Mr. Nye, Mr. Pascrell, Ms. Pelosi, Mr. Perlmutter, Mr. Perriello, 
  Mr. Peters, Mr. Peterson, Mr. Pierluisi, Mr. Pomeroy, Mr. Price of 
 North Carolina, Mr. Quigley, Mr. Reyes, Mr. Rodriguez, Mr. Ross, Mr. 
Ruppersberger, Mr. Ryan of Ohio, Mr. Sablan, Mr. Salazar, Ms. Linda T. 
Sanchez of California, Ms. Loretta Sanchez of California, Mr. Sarbanes, 
   Mr. Schauer, Mr. Schiff, Mr. Schrader, Ms. Schwartz, Mr. Scott of 
   Georgia, Mr. Scott of Virginia, Mr. Sestak, Ms. Shea-Porter, Mr. 
 Sherman, Mr. Shuler, Mr. Sires, Mr. Skelton, Ms. Slaughter, Mr. Smith 
  of Washington, Mr. Space, Ms. Speier, Mr. Stupak, Mr. Tanner, Mrs. 
   Tauscher, Mr. Teague, Mr. Thompson of California, Ms. Titus, Ms. 
 Tsongas, Mr. Van Hollen, Mr. Walz, Ms. Wasserman Schultz, Mr. Waxman, 
 Mr. Wexler, Mr. Wilson of Ohio, Mr. Wu, Mr. Tonko, and Mr. Visclosky) 
 introduced the following bill; which was referred to the Committee on 
                               the Budget

_______________________________________________________________________

                                 A BILL

 
   To reinstitute and update the Pay-As-You-Go requirement of budget 
 neutrality on new tax and mandatory spending legislation, enforced by 
             the threat of annual, automatic sequestration.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Statutory Pay-As-
You-Go Act of 2009''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose and expiration.
Sec. 3. Definitions.
Sec. 4. PAYGO estimates and PAYGO ledger.
Sec. 5. Annual report and sequestration order.
Sec. 6. Calculating a sequestration.
Sec. 7. Special, temporary rule to reflect current policy.
Sec. 8. Application of BBEDCA.
Sec. 9. Amendments to the baseline.
Sec. 10. Technical corrections.
Sec. 11. Conforming amendments.
Sec. 12. Exempt programs and activities.

SEC. 2. PURPOSE AND EXPIRATION.

    (a) Purpose.--The purpose of this Act is to reestablish a statutory 
procedure to enforce a rule of budget neutrality on new tax and 
mandatory spending legislation enacted through the end of calendar year 
2013, by creating an automatic statutory penalty that Congress and the 
President will seek to avoid.
    (b) Expiration.--Sections 1 through 8 of this Act shall expire on 
the later of December 31, 2013, or the issuance and implementation of a 
sequestration order for fiscal year 2014 if one is required by this 
Act.

SEC. 3. DEFINITIONS.

    As used in this Act--
            (1) The term ``BBEDCA'' means the Balanced Budget and 
        Emergency Deficit Control Act of 1985.
            (2) The terms ``appropriation Act'', ``budget authority'', 
        and ``outlays'' have the meanings given to them in section 3 of 
        the Congressional Budget and Impoundment Control Act of 1974.
            (3) The terms ``baseline'', ``budget year'', ``CBO'', 
        ``current year'', ``deposit insurance'', ``OMB'', 
        ``sequester'', and ``sequestration'' have the meanings given to 
        them in section 250 of BBEDCA.
            (4) The term ``AMT'' means the Alternative Minimum Tax for 
        individuals under sections 55-59 of the Internal Revenue Code 
        of 1986, the term ``EGTRRA'' means the Economic Growth and Tax 
        Relief Reconciliation Act of 2001 (Public Law 107-16), and the 
        term ``JGTRRA'' means the Jobs and Growth Tax Relief and 
        Reconciliation Act of 2003 (Public Law 108-27).
            (5) The term ``budgetary effects'' means the amounts by 
        which PAYGO legislation changes mandatory outlays or revenues 
        relative to the baseline. Budgetary effects that increase 
        mandatory outlays or decrease revenues are termed ``costs'' and 
        budgetary effects that increase revenues or decrease mandatory 
        outlays are termed ``savings''. For purposes of these 
        definitions, off-budget effects and debt service effects are 
        not counted as budgetary effects.
            (6) The term ``debit'' refers to the net total amount, when 
        positive, by which costs recorded on the PAYGO ledger for a 
        fiscal year exceed savings recorded on that ledger for that 
        year.
            (7) The term ``discretionary programs'' refers to programs 
        funded though appropriation Acts other than mandatory programs.
            (8) The term ``entitlement law'' means the statutory 
        mandate or requirement of the United States to incur a 
        financial obligation unless that obligation is explicitly 
        conditioned on the appropriation in subsequent legislation of 
        sufficient funds for that purpose.
            (9) The term ``mandatory outlays'' refers to outlays 
        flowing from--
                    (A) budget authority provided by laws other than 
                appropriation Acts;
                    (B) entitlement laws; or
                    (C) the Supplemental Nutrition Assistance Program, 
                and the term ``mandatory programs'' refers to programs 
                that produce mandatory outlays.
            (10) The term ``outyear'' means a fiscal year that occurs 
        one or more years after the budget year.
            (11) The term ``PAYGO ledger'' refers to a table maintained 
        by OMB (A) containing a column for each fiscal year 2010 
        through 2014 and recording in the applicable column or columns 
        the average of the budgetary effects of each PAYGO Act enacted 
        after the enactment of this Act and before January 1, 2014, and 
        (B) displaying the net sum for each of those fiscal years of 
        the average budgetary effects of all such Acts.
            (12) The term ``PAYGO legislation'' or a ``PAYGO Act'' 
        refer to legislation that is scored as increasing or decreasing 
        governmental receipts or mandatory outlays relative to the 
        baseline, except that when those budgetary effects are caused 
        by substantive legislative provisions in appropriation Acts, 
        the current-year and budget-year effects of those provisions 
        are not considered PAYGO legislation.
            (13) The term ``timing shift'' refers to a delay of the 
        date on which mandatory outlays would otherwise occur from the 
        ninth outyear to the tenth outyear or an acceleration of the 
        date on which revenues or offsetting receipts or collections 
        would otherwise occur from the tenth outyear to the ninth 
        outyear.

SEC. 4. PAYGO ESTIMATES AND PAYGO LEDGER.

    (a) CBO Estimates.--As soon as practicable after Congress completes 
action on any PAYGO legislation, CBO shall provide an estimate of its 
budgetary effects to OMB.
    (b) PAYGO Ledger.--OMB shall maintain and make publicly available a 
document containing a PAYGO ledger and, not later than 7 days 
(excluding weekends and legal holidays) after the enactment of any 
PAYGO legislation, OMB shall record on that ledger its estimate of the 
legislation's budgetary effects in each fiscal year, applying the look-
back requirement of subsection (e) and the averaging requirement of 
subsection (h). The document shall also explain any major differences 
between the OMB and CBO estimates of the budgetary effects of PAYGO 
legislation.
    (c) Basis of OMB Estimates.--When estimating and recording the 
budgetary effects of a PAYGO Act, OMB shall employ economic and 
technical assumptions consistent with those in the President's most 
recent Budget submitted under section 1105 of title 31, United States 
Code, and shall use probabilistic methods where appropriate. Once it 
enters budgetary effects on the ledger, OMB shall not change the 
entries other than to correct errors. OMB's assumptions, data, 
determinations, estimates, and methodology under this Act are not 
subject to review in any judicial or administrative proceeding.
    (d) Current Policy Exceptions for Certain Legislation.--
Notwithstanding the definitions in paragraphs (5), (11), and (12) of 
section 3, OMB estimates of provisions of legislation within the four 
areas of the budget identified in section 7 shall be entered on the 
PAYGO scorecard as specified in that section, and the estimates so 
entered shall be treated as the budgetary effects of PAYGO legislation 
for purposes of this section.
    (e) Look-Back To Capture Current-Year Effects.--For purposes of 
this section, OMB shall treat the budgetary effects of PAYGO 
legislation enacted during a session of Congress that occur during the 
current year as though they occurred in the budget year.
    (f) Timing Shifts.--For purposes of this section, OMB and CBO shall 
not count timing shifts in their estimates of the budgetary effects of 
PAYGO legislation.
    (g) Emergency Legislation.--If a provision of PAYGO legislation is 
enacted that the President designates as an emergency requirement and 
that the Congress so designates in statute, OMB shall display the 
budgetary effects of that provision as an addendum in the document 
containing the PAYGO ledger but shall not record the budgetary effects 
in the ledger itself.
    (h) Averaging Used To Measure Compliance Over Ten Years.--OMB shall 
cumulate the budgetary effects of a PAYGO Act over the budget year 
(which includes any look-back effects under subsection (e)) and the 
nine subsequent outyears, divide that cumulative total by ten, and 
enter the quotient in the budget-year column of the PAYGO ledger and in 
each subsequent column, if any, through the column for 2014.
    (i) Scorekeeping Guidelines.--OMB and CBO shall prepare estimates 
under this paragraph in conformance with scorekeeping guidelines 
determined after consultation among the House and Senate Committees on 
the Budget, CBO, and OMB.
    (j) Treatment of Program Conversions.--For purposes of this 
section, and notwithstanding other provisions of this Act--
            (1) if legislation converts an identifiable element of a 
        mandatory program into a discretionary program (with that 
        program element or a substantially similar one continuing to be 
        authorized), OMB and CBO shall not score the conversion of that 
        element as reducing mandatory outlays; and
            (2) if legislation converts an identifiable element of a 
        discretionary program into a mandatory program, OMB and CBO 
        shall estimate the legislation's budgetary effects in each year 
        by subtracting the discretionary baseline levels of that 
        element from the amount by which that legislation increases 
        mandatory outlays in that year.

SEC. 5. ANNUAL REPORT AND SEQUESTRATION ORDER.

    (a) Annual Report.--No later than 14 days (excluding weekends and 
holidays) after Congress adjourns to end a session, OMB shall make 
publicly available an annual PAYGO report and publish in the Federal 
Register a notice of the report and information on how it can be 
obtained. The report shall include an up-to-date document containing a 
PAYGO ledger and information about estimating differences as required 
by section 4(b), a description of and justification for any current 
policy exceptions made under section 4(d), information about emergency 
legislation (if any) required by section 4(g), information about any 
sequestration if required by subsection (b), and other data and 
explanations that enhance public understanding of this Act and actions 
taken under it. If Congress does not adjourn to end a session, then for 
the purposes of this Act it shall be deemed to have done so on December 
31 of that session.
    (b) Sequestration Order.--If the annual report issued at the end of 
a session of Congress under subsection (a) shows a debit on the PAYGO 
ledger for the budget year, OMB shall prepare and the President shall 
issue an order sequestering budgetary resources from mandatory programs 
by enough to fully offset that debit, as prescribed in section 6. OMB 
shall include that order in the annual report and transmit it to the 
House of Representatives and the Senate. If the President issues a 
sequestration order, the annual report shall contain, for each budget 
account to be sequestered, estimates of the baseline level of budgetary 
resources subject to sequestration, the amount of budgetary resources 
to be sequestered, and the outlay reductions that will occur in the 
budget year and the subsequent fiscal year because of that 
sequestration.

SEC. 6. CALCULATING A SEQUESTRATION.

    (a) Sequestration Base.--For purposes of this section, OMB shall 
assume that mandatory programs are at the levels in the baseline before 
the implementation of the sequestration order.
    (b) Reducing Nonexempt Budgetary Resources by a Uniform 
Percentage.--OMB shall calculate the uniform percentage by which the 
budgetary resources of nonexempt mandatory programs are to be 
sequestered such that the outlay savings resulting from that 
sequestration, as calculated under subsection (c), shall fully offset 
the budget-year debit on the PAYGO ledger, if any. If the uniform 
percentage calculated under the prior sentence exceeds 4 percent, the 
Medicare programs described in section 256(d) of BBEDCA shall be 
reduced by 4 percent and the uniform percentage by which the budgetary 
resources of all other nonexempt mandatory programs are to be 
sequestered shall be increased, as necessary, so that the sequestration 
of Medicare and of all other nonexempt mandatory programs together 
produces the required outlay savings.
    (c) Outlay Savings.--In determining the amount by which a 
sequestration offsets a budget-year debit, OMB shall count--
            (1) the amount by which the sequestration in a crop year of 
        crop support payments, pursuant to section 256(j) of BBEDCA, 
        reduces outlays in the budget year and the subsequent fiscal 
        year;
            (2) the amount by which the sequestration of Medicare 
        payments in the 12-month period following the sequestration 
        order, pursuant to section 256(d) of BBEDCA, reduces outlays in 
        the budget year and the subsequent fiscal year; and
            (3) the amount by which the sequestration in the budget 
        year of the budgetary resources of other nonexempt mandatory 
        programs reduces mandatory outlays in the budget year and in 
        the subsequent fiscal year.

SEC. 7. SPECIAL, TEMPORARY RULE TO REFLECT CURRENT POLICY.

    (a) Purpose.--The purpose of this section is to establish a 
temporary rule addressing the scoring of legislation affecting four 
areas of the budget and superseding the scoring rules otherwise 
provided by this Act to the extent they are inconsistent. The four 
areas covered by this section are--
            (1) payments made under section 1848 of the Social Security 
        Act (titled Payment for Physicians' Services);
            (2) the Estate and Gift Tax under subtitle B of the 
        Internal Revenue Code of 1986;
            (3) the AMT; and
            (4) provisions of EGTRRA or JGTRRA that amended the 
        Internal Revenue Code of 1986 (or provisions in later statutes 
        further amending the amendments made by EGTRRA or JGTRRA), 
        other than--
                    (A) the provisions of those two Acts that were made 
                permanent by the Pension Protection Act of 2006 (Public 
                Law 109-280);
                    (B) amendments to the estate and gift tax referred 
                to in paragraph (2); and
                    (C) the AMT referred to in paragraph (3).
    (b) Duration.--This section shall remain in effect through December 
31, 2010, for each of the four areas specified in subsection (a), 
except that if the President determines that legislation sufficiently 
consistent with current policy as described in subsection (c)(2) has 
not been enacted in one or more of those four areas by that date, the 
provisions of this section will remain in effect with respect to that 
area or those areas until such legislation has been enacted or until 
December 31, 2011, whichever occurs sooner.
    (c) Current Policy Projection and Initial Current Law 
Projections.--
            (1) For purposes of this section, the budgetary effects of 
        legislation of the type referred to in subsection (a) shall be 
        estimated relative to the baseline under section 257 of BBEDCA 
        but the budgetary effects of that legislation shall be entered 
        on the PAYGO ledger only to the extent that they fall outside a 
        range bounded by the current policy projection under paragraph 
        (2) and the initial current law projection under paragraph (3), 
        as specified under subsections (d), (e), or (f), as applicable. 
        Each of those two boundary projections shall be estimated using 
        the policy assumptions stated in paragraph (2) or (3) as 
        applicable, regardless of the enactment of subsequent 
        legislation, but the estimates of the dollar levels of those 
        two boundary projections shall change--
                    (A) when economic and technical assumptions change 
                with the issuance of a new budget under section 1105 of 
                title 31 United States Code;
                    (B) with changes in the assumed effective date of 
                the legislation that is measured against those two 
                projections; and
                    (C) to the extent the policy assumptions under 
                either of those two projections interact with other 
                aspects of law, when legislation affecting those other 
                aspects of law is enacted.
        With respect only to legislation affecting the AMT or the 
        amendments to provisions of the income tax referred to in 
        subsection (a)(4), the dollar levels of those two boundary 
        projections shall be estimated separately, and the 
        determination of whether and the extent to which budgetary 
        effects fall outside the boundaries shall be made separately, 
        for each separate provision within that legislation.
            (2) During the period specified in subsection (b), there 
        shall exist a current policy projection in addition to the 
        baseline specified in section 257 of BBEDCA. This projection 
        shall--
                    (A) with respect to payments made under section 
                1848 of the Social Security Act, assume that the 
                applicable payment rates and payment policies in effect 
                for 2009 remain in effect thereafter without change;
                    (B) with respect to the estate and gift tax, assume 
                that the tax rates, nominal exemption amounts, and 
                related parameters in effect for tax year 2009 remain 
                in effect thereafter without change;
                    (C) with respect to the AMT, assume that the 
                exemption amounts and related parameters in effect for 
                tax year 2009 are increased in each subsequent year by 
                an amount equal to the cost-of-living adjustment 
                determined under section 1(f)(3) of the Internal 
                Revenue Code of 1986 for the calendar year in which the 
                taxable year begins, determined by substituting 
                ``calendar year 2008'' for ``calendar year 1992'' in 
                subparagraph (B) thereof; and
                    (D) with respect to the income tax provisions 
                referred to in subsection (a)(4), assume that each such 
                separate provision scheduled on June 8, 2009, to be in 
                effect for tax year 2010 remains in effect thereafter 
                without change, other than applicable indexing.
            (3) Initial current law projection.--During the period 
        specified in subsection (b), there shall exist an initial 
        current law projection in addition to the baseline specified in 
        section 257 of BBEDCA. This projection shall--
                    (A) with respect to payments made under section 
                1848 of the Social Security Act, assume that the 
                applicable payment rates and payment policies scheduled 
                on June 8, 2009, to be in effect for each subsequent 
                fiscal year shall be in effect as scheduled;
                    (B) with respect to the estate and gift tax, assume 
                that the tax rates, nominal exemption amounts, and 
                related parameters scheduled on June 8, 2009, to be in 
                effect for each subsequent tax year shall be in effect 
                as scheduled;
                    (C) with respect to the AMT, assume that the 
                exemption amounts and related parameters scheduled on 
                June 8, 2009, to be in effect for each subsequent tax 
                year shall be in effect as scheduled; and
                    (D) with respect to provisions of the income tax 
                referred to in subsection (a)(4), assume that each such 
                provision scheduled on June 8, 2009, to be in effect 
                for each subsequent tax year shall be in effect as 
                scheduled.
    (d) Budgetary Effects of Certain Medicare Legislation.--
Notwithstanding the definitions in paragraphs (5), (11), and (12) of 
section 3, OMB shall enter on the PAYGO ledger the budgetary effects of 
any provision of PAYGO legislation that amends or supersedes the system 
of payments under section 1848 of the Social Security Act--
            (1) only to the extent that the level of net Medicare 
        outlays are estimated to be higher in a fiscal year than if 
        that provision of PAYGO legislation had instead enacted (or 
        maintained) the current policy projection; or
            (2) only to the extent that the level of net Medicare 
        outlays are estimated to be lower in a fiscal year than if that 
        provision of PAYGO legislation had instead enacted (or 
        maintained) the initial current law projection.
    (e) Budgetary Effects of Estate and Gift Tax Legislation.--
Notwithstanding the definitions in paragraphs (5), (11), and (12) of 
section 3, OMB shall enter on the PAYGO ledger the budgetary effects of 
any provision of PAYGO legislation that amends the estate and gift 
tax--
            (1) only to the extent that total revenues in a fiscal year 
        are estimated to be changed because tax liability under the 
        estate and gift tax is estimated to be higher in tax year 2010 
        than if that provision of PAYGO legislation had instead enacted 
        (or maintained) the current policy projection;
            (2) only to the extent that total revenues in a fiscal year 
        are estimated to be changed because tax liability under the 
        estate and gift tax is estimated to be lower in tax year 2010 
        than if that provision of PAYGO legislation had instead enacted 
        (or maintained) the initial current law projection;
            (3) only to the extent that total revenues in a fiscal year 
        are estimated to be changed because tax liability under the 
        estate and gift tax is estimated to be lower in a tax year 
        after 2010 than if that provision of PAYGO legislation had 
        instead enacted (or maintained) the current policy projection; 
        or
            (4) only to the extent that total revenues in a fiscal year 
        are estimated to be changed because tax liability under the 
        estate and gift tax is estimated to be higher in a tax year 
        after 2010 than if that provision of PAYGO legislation had 
        instead enacted (or maintained) the initial current law 
        projection.
    (f) Budgetary Effects of AMT and Certain Income Tax Legislation 
Taken Separately; Stacking Order and Interactive Effects.--
Notwithstanding the definitions in paragraphs (5), (11), and (12) of 
section 3, OMB shall enter on the PAYGO ledger the budgetary effects of 
any PAYGO legislation that amends the AMT or amends one of the income 
tax provisions referred to in subsection (a)(4)--
            (1) only to the extent that the level of income tax 
        revenues is estimated to be lower and the level of outlays for 
        refundable tax credits is estimated to be higher in a fiscal 
        year than if that PAYGO legislation had instead enacted (or 
        maintained) the current policy projection with respect to that 
        provision of the income tax; or
            (2) only to the extent that the level of income tax 
        revenues is estimated to be higher and the level of outlays for 
        refundable tax credits is estimated to be lower in a fiscal 
        year than if that PAYGO legislation had instead enacted (or 
        maintained) the initial current law projection with respect to 
        that provision of the income tax.
In making estimates under this section of the budgetary effects of a 
PAYGO Act that amends both the AMT and at least one separate provision 
of the income tax, or amends more than one separate provision of the 
income tax, OMB shall first estimate the budgetary effects of any 
amendment to the AMT contained in that Act, and shall then estimate the 
budgetary effects of each remaining amendment to the income tax 
contained in that Act as though any AMT amendments contained in that 
Act and the preceding amendments made by that Act had been enacted but 
the succeeding amendments had not. For purposes of this section, each 
separate income tax rate shall be considered a separate provision.

SEC. 8. APPLICATION OF BBEDCA.

    For purposes of this Act--
            (1) notwithstanding section 275 of BBEDCA, the provisions 
        of sections 255, 256, and 257 of BBEDCA, as amended by this 
        Act, shall apply to the provisions of this Act;
            (2) references in sections 255, 256, and 257 to ``this 
        part'' shall be interpreted as applying to this Act;
            (3) references in sections 255, 256, and 257 of BBEDCA to 
        ``section 254'' shall be interpreted as referencing section 5 
        of this Act;
            (4) the reference in section 256(b) of BBEDCA to ``section 
        252 or 253'' shall be interpreted as referencing section 5 of 
        this Act;
            (5) the reference in section 256(d)(1) of BBEDCA to 
        ``section 252 or 253'' shall be interpreted as referencing 
        section 6 of this Act;
            (6) the reference in section 256(d)(4) of BBEDCA to 
        ``section 252 or 253'' shall be interpreted as referencing 
        section 5 of this Act;
            (7) section 256(k) of the BBEDCA shall apply to a 
        sequestration, if any, under this Act;
            (8) references in section 257(e) to ``section 251, 252, or 
        253'' shall be interpreted as referencing section 4 of this 
        Act; and
            (9) the term ``direct spending'' in section 257 of BBEDCA 
        shall be interpreted as applying to mandatory programs or the 
        funding for mandatory programs, as appropriate.

SEC. 9. AMENDMENTS TO THE BASELINE.

    In section 257 of BBEDCA--
            (1) strike ``entitlement authority'' and insert in lieu 
        thereof ``entitlement laws'';
            (2) amend subsection (b)(2)(A) to read--
            ``(A) If any law expires before the budget year or before 
        any outyear, then any program with estimated current-year 
        outlays of more than $50,000,000 operating under that law is 
        assumed to continue to operate under that law as in effect 
        immediately before its expiration. For purposes of the 
        preceding sentence, the Food, Conservation, and Energy Act of 
        2008 or a similar successor Act is treated as a program assumed 
        to be continued after its scheduled expiration.'';
            (3) amend subsection (b)(2)(D) to read--
            ``(D) Payments of social insurance, deposit insurance, 
        pension insurance, and any similar statutory financial 
        insurance guarantees are assumed to be made in full regardless 
        of the sufficiency of the funds supporting those programs, and 
        funding for flood insurance and any similar contractual 
        insurance programs is assumed to be sufficient to fulfill 
        existing contracts.'';
            (4) amend subsection (c)(1) by striking ``Budgetary 
        resources'' and inserting in lieu thereof ``Except as provided 
        in subsection (d), budgetary resources'' and by striking ``to 
        offset pay absorption and for pay annualization'' and inserting 
        in lieu thereof ``to adjust Pell grant funding'';
            (5) amend subsection (c)(2) to read--
            ``(2) Expiring housing contracts.--New budget authority 
        shall be added to the baseline in the budget year and the 
        outyears to cover the costs of renewing expiring subsidized 
        housing contracts that were funded in the current year under 
        multiyear contracts whose budget authority was recorded in 
        years prior to the current year. The amount added (before 
        adjusting for inflation) shall be the amount needed to renew 
        the expiring contracts through an uninterrupted series of 12-
        month contracts, assuming unchanged rental or equivalent 
        prices.'';
            (6) amend subsection (c)(4) to read--
            ``(4) Pell grants.--Notwithstanding paragraph (1), new 
        budget authority for the Pell grant program shall be included 
        in the baseline in an amount sufficient to cover the costs of 
        the program at the maximum award level specified in the most 
        recently enacted full-year appropriation Acts, the budget 
        authority in the budget year shall be adjusted for any 
        cumulative funding shortfall or surplus from prior academic 
        years, and the adjustment for inflation under paragraph (5) 
        shall not apply.''; and
            (7) insert after subsection (c) the following (and 
        redesignate the subsequent subsections accordingly):
    ``(d) Disasters.--Notwithstanding subsections (b) and (c), 
temporary mandatory funding and tax provisions related to major natural 
or man-made disasters shall be assumed to expire on schedule, and 
discretionary funding for major natural or man-made disaster shall not 
be projected. In lieu, the baseline shall include a disaster allowance 
that is not designated as mandatory or discretionary and is not 
allocated to any committee of Congress. The amount of budget authority 
assumed for this disaster allowance shall equal a probabilistic 
estimate of the amount of Federal exposure to the risk of major natural 
or man-made disasters occurring in the remainder of the current year, 
the budget year, and each outyear, and the amount of outlays shall 
equal the estimated expenditures of that budget authority. Major 
disasters shall include disaster costs other than those normally 
covered by routine firefighting funding and normal and ongoing costs of 
disaster agencies, programs, or activities.''.

SEC. 10. TECHNICAL CORRECTIONS.

            (1) Section 250(c)(18) of BBEDCA is amended by striking 
        ``the expenses the Federal deposit insurance agencies'' and 
        inserting ``the expenses of the Federal deposit insurance 
        agencies''.
            (2) Section 256(k)(1) of BBEDCA is amended by striking ``in 
        paragraph (5)'' and inserting ``in paragraph (6)''.

SEC. 11. CONFORMING AMENDMENTS.

    (a) Section 256(a) of BBEDCA is repealed.
    (b) Section 256(b) of BBEDCA is amended by striking ``origination 
fees under sections 438(c)(2) and 455(c) of that Act shall each be 
increased by 0.50 percentage point.'' and inserting in lieu thereof 
``origination fees under sections 438(c) (2) and (6) and 455(c) and 
loan processing and issuance fees under section 428(f)(1)(A)(ii) of 
that Act shall each be increased by the uniform percentage specified in 
that sequestration order, and, for student loans originated during the 
period of the sequestration, special allowance payments under section 
438(b) of that Act accruing during the period of the sequestration 
shall be reduced by the uniform percentage specified in that 
sequestration order.''.
    (c) Section 256(c) of BBEDCA is repealed.
    (d) Section 256(d) of BBEDCA is amended--
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (5), and (6);
            (2) by amending paragraph (1) to read as follows:
            ``(1) Calculation of reduction in payment amounts.--To 
        achieve the total percentage reduction in those programs 
        required by section 252 or 253, subject to paragraph (2), and 
        notwithstanding section 710 of the Social Security Act, OMB 
        shall determine, and the applicable Presidential order under 
        section 254 shall implement, the percentage reduction that 
        shall apply, with respect to the health insurance programs 
        under title XVIII of the Social Security Act--
                    ``(A) in the case of parts A and B of such title, 
                to individual payments for services furnished during 
                the one-year period beginning on the first day of the 
                first month beginning after the date the order is 
                issued (or, if later, the date specified in paragraph 
                (4)); and
                    ``(B) in the case of parts C and D, to monthly 
                payments under contracts under such parts for the same 
                one-year period;
        such that the reduction made in payments under that order shall 
        achieve the required total percentage reduction in those 
        payments for that period.'';
            (3) by inserting after paragraph (1) the following:
            ``(2) Uniform reduction rate; maximum permissible 
        reduction.--Reductions in payments for programs and activities 
        under such title XVIII pursuant to a sequestration order under 
        section 254 shall be at a uniform rate, which shall not exceed 
        4 percent, across all such programs and activities subject to 
        such order.'';
            (4) by inserting after paragraph (3), as redesignated, the 
        following:
            ``(4) Timing of subsequent sequestration order.--A 
        sequestration order required by section 252 or 253 with respect 
        to programs under such title XVIII shall not take effect until 
        the first month beginning after the end of the effective period 
        of any prior sequestration order with respect to such programs, 
        as determined in accordance with paragraph (1).'';
            (5) in paragraph (6), as redesignated, to read as follows:
            ``(6) Sequestration disregarded in computing payment 
        amounts.--The Secretary of Health and Human Services shall not 
        take into account any reductions in payment amounts which have 
        been or may be effected under this part, for purposes of 
        computing any adjustments to payment rates under such title 
        XVIII, specifically including--
                    ``(A) the part C growth percentage under section 
                1853(c)(6);
                    ``(B) the part D annual growth rate under section 
                1860D-2(b)(6); and
                    ``(C) application of risk corridors to part D 
                payment rates under section 1860D-15(e).''; and
            (6) by adding after paragraph (6), as redesignated, the 
        following:
            ``(7) Exemptions from sequestration.--In addition to the 
        programs and activities specified in section 255, the following 
        shall be exempt from sequestration under this part:
                    ``(A) Part d low-income subsidies.--Premium and 
                cost-sharing subsidies under section 1860D-14 of the 
                Social Security Act.
                    ``(B) Part d catastrophic subsidy.--Payments under 
                section 1860D-15(b) and (e)(2)(B) of the Social 
                Security Act.
                    ``(C) Qualified individual (qi) premiums.--Payments 
                to States for coverage of Medicare cost-sharing for 
                certain low-income Medicare beneficiaries under section 
                1933 of the Social Security Act.''.

SEC. 12. EXEMPT PROGRAMS AND ACTIVITIES.

    (a) Designations.--Section 255 of BBEDCA is amended by 
redesignating paragraph (i) as (j) and striking ``1998'' and inserting 
in lieu thereof ``2010''.
    (b) Social Security, Veterans Programs, Net Interest, and Tax 
Credits.--Subsections (a) through (d) of section 255 of BBEDCA are 
amended to read as follows:
    ``(a) Social Security Benefits and Tier I Railroad Retirement 
Benefits.--Benefits payable under the old-age, survivors, and 
disability insurance program established under title II of the Social 
Security Act (title 42, United States Code, section 401 et seq.), and 
benefits payable under section 231b(a), 231b(f)(2), 231c(a), and 
231c(f) of title 45 United States Code, shall be exempt from reduction 
under any order issued under this part.
    ``(b) Veterans Programs.--The following programs shall be exempt 
from reduction under any order issued under this part--
            ``Canteen Service Revolving Fund (36-4014-0-3-705).
            ``National Service Life Insurance Fund (36-8132-0-7-701).
            ``Native American Veteran Housing Loan Program (36-1120-0-
        1-704).
            ``Service-Disabled Veterans Insurance Fund (36-4012-0-3-
        701).
            ``Veterans Insurance and Indemnities (36-0120-0-1-701).
            ``Veterans Reopened Insurance Fund (36-4010-0-3-701).
            ``Veterans Special Life Insurance Fund (36-8455-0-8-701).
            ``United States Government Life Insurance Fund (36-8150-0-
        7-701).
            ``Benefits under chapter 21 of title 38, United States 
        Code, relating to specially adapted housing and mortgage-
        protection life insurance for certain veterans with service-
        connected disabilities (36-0120-01-701).
            ``Compensation and Pensions (36-0102-0-1-701) to include 
        Burial Benefits under chapter 23 of title 38.
            ``Benefits under chapter 33 of title 38, United States 
        Code, relating to educational assistance provided by the Post-
        9/11 Educational Assistance Act of 2008 (36-0137-0-1-702).
            ``Benefits under chapter 39 of title 38, United States 
        Code, relating to automobiles and adaptive equipment for 
        certain disabled veterans and members of the Armed Forces (36-
        0137-0-1-702).
            ``Benefits under chapter 35 of title 38, United States 
        Code, related to educational assistance for survivors and 
        dependents of certain veterans with service-connected 
        disabilities (36-0137-0-1-702).
            ``Assistance and services under chapter 31 of title 38, 
        United States Code, relating to training and rehabilitation for 
        certain veterans with service-connected disabilities (36-0137-
        0-1-702).
            ``Benefits under subchapters I, II, and III of chapter 37 
        of title 38, United States Code, relating to housing loans for 
        certain veterans and for the spouses and surviving spouses of 
        certain veterans Housing Program Account (36-1119-0-1-704).
            ``Special Benefits for Certain World War II Veterans (28-
        0401-0-1-701).
    ``(c) Net Interest.--No reduction of payments for net interest (all 
of major functional category 900) shall be made under any order issued 
under this part.
    ``(d) Refundable Income Tax Credits.--Payments to individuals made 
pursuant to provisions of the Internal Revenue Code of 1986 
establishing refundable tax credits shall be exempt from reduction 
under any order issued under this part.''.
    (c) Other Programs and Activities, Low-Income Programs, and 
Economic Recovery Programs.--Subsections (g) and (h) of section 255 of 
BBEDCA are amended to read as follows:
    ``(g) Other Programs and Activities.--
            ``(1)(A) The following budget accounts and activities shall 
        be exempt from reduction under any order issued under this 
        part:
                    ``Activities resulting from private donations, 
                bequests, or voluntary contributions to the Government.
                    ``Activities financed by voluntary payments to the 
                Government for goods or services to be provided for 
                such payments.
                    ``Administration of Territories, Northern Mariana 
                Islands Covenant grants (14-0412-0-1-808).
                    ``Advances to the Unemployment Trust Fund and Other 
                Funds (16-0327-0-1-600).
                    ``Appropriations for the District of Columbia (to 
                the extent they are appropriations of locally raised 
                funds).
                    ``Black Lung Disability Trust Fund Refinancing (16-
                0329-0-1-601).
                    ``Bonneville Power Administration Fund and 
                borrowing authority established pursuant to section 13 
                of Public Law 93-454 (1974), as amended (89-4045-0-3-
                271).
                    ``Claims, Judgments, and Relief Acts (20-1895-0-1-
                808).
                    ``Colorado River Basins Power Marketing Fund, 
                Western Area Power Administration (89-4452-0-3-271).
                    ``Compact of Free Association (14-0415-0-1-808).
                    ``Compensation of the President (11-0209-0-1-802).
                    ``Construction, Rehabilitation, Operation and 
                Maintenance, Western Area Power Administration (89-
                5068-0-2-271).
                    ``Comptroller of the Currency, Assessment Funds 
                (20-8413-0-8-373).
                    ``Continuing Fund, Southeastern Power 
                Administration (89-5653-0-2-271).
                    ``Continuing Fund, Southwestern Power 
                Administration (89-5649-0-2-271).
                    ``Dual Benefits Payments Account (60-0111-0-1-601).
                    ``Emergency Fund, Western Area Power Administration 
                (89-5069-0-2-271).
                    ``Exchange Stabilization Fund (20-4444-0-3-155); 
                Federal Deposit Insurance Corporation, Deposit 
                Insurance Fund (51-4596-4-4-373).
                    ``Federal Deposit Insurance Corporation, FSLIC 
                Resolution Fund (51-4065-0-3-373).
                    ``Federal Deposit Insurance Corporation, 
                Noninterest Bearing Transaction Account Guarantee (51-
                4458-0-3-373).
                    ``Federal Deposit Insurance Corporation, Office of 
                Inspector General (51-4595-0-4-373).
                    ``Federal Deposit Insurance Corporation, Senior 
                Unsecured Debt Guarantee (51-4457-0-3-373).
                    ``Federal Housing Finance Agency, Administrative 
                Expenses (95-5532-0-2-371).
                    ``Federal Payment to the District of Columbia 
                Judicial Retirement and Survivors Annuity Fund (20-
                1713-0-1-752).
                    ``Federal Payment to the District of Columbia 
                Pension Fund (20-1714-0-1-601).
                    ``Federal Payments to the Railroad Retirement 
                Accounts (60-0113-0-1-601).
                    ``Federal Reserve Bank Reimbursement Fund (20-1884-
                0-1-803).
                    ``Financial Agent Services (20-1802-0-1-803).
                    ``Foreign Military Sales Trust Fund (11-8242-0-7-
                155).
                    ``Hazardous Waste Management, Conservation Reserve 
                Program (12-4336-0-3-999).
                    ``Health Education Assistance Loans Program Account 
                (75-0340-0-1-552).
                    ``Host Nation Support Fund for Relocation (97-8337-
                0-7-051).
                    ``Internal Revenue Collections for Puerto Rico (20-
                5737-0-2-806).
                    ``Intragovernmental funds, including those from 
                which the outlays are derived primarily from resources 
                paid in from other government accounts, except to the 
                extent such funds are augmented by direct 
                appropriations for the fiscal year during which an 
                order is in effect.
                    ``Medical Facilities Guarantee and Loan Fund (75-
                9931-0-3-551).
                    ``National Credit Union Administration, Central 
                Liquidity Facility (25-4470-0-3-373).
                    ``National Credit Union Administration, Corporate 
                Credit Union Share Guarantee Program (25-4476-0-3-376).
                    ``National Credit Union Administration, Credit 
                Union Homeowners Affordability Relief Program (25-4473-
                0-3-371).
                    ``National Credit Union Administration, Credit 
                Union Share Insurance Fund (25-4468-0-3-373).
                    ``National Credit Union Administration, Credit 
                Union System Investment Program (25-4474-0-3-376).
                    ``National Credit Union Administration, Operating 
                fund (25-4056-0-3-373).
                    ``National Credit Union Administration, Share 
                Insurance Fund Corporate Debt Guarantee Program (25-
                4469-0-3-376).
                    ``National Credit Union Administration, U.S. 
                Central Federal Credit Union Capital Program (25-4475-
                0-3-376).
                    ``Office of Thrift Supervision (20-4108-0-3-373).
                    ``Operation and Maintenance, Alaska Power 
                Administration (89-0302-0-1-271).
                    ``Operation and Maintenance, Southeastern Power 
                Administration (89-0302-0-1-271).
                    ``Operation and Maintenance, Southwestern Power 
                Administration (89-0303-0-1-271).
                    ``Panama Canal Commission Compensation Fund (16-
                5155-0-2-602).
                    ``Payment of Vietnam and USS Pueblo prisoner-of-war 
                claims within the Salaries and Expenses, Foreign Claims 
                Settlement account (15-0100-0-1-153).
                    ``Payment to Civil Service Retirement and 
                Disability Fund (24-0200-0-1-805).
                    ``Payment to Department of Defense Medicare-
                Eligible Retiree Health Care Fund (97-0850-0-1-054).
                    ``Payment to Judiciary Trust Funds (10-0941-0-1-
                752).
                    ``Payment to Military Retirement Fund (97-0040-0-1-
                054).
                    ``Payment to the Foreign Service Retirement and 
                Disability Fund (19-0540-0-1-153).
                    ``Payments to Copyright Owners (03-5175-0-2-376).
                    ``Payments to Health Care Trust Funds (75-0580-0-1-
                571).
                    ``Payments to Social Security Trust Funds (28-0404-
                0-1-651).
                    ``Payments to the United States Territories, Fiscal 
                Assistance (14-0418-0-1-806).
                    ``Payments to trust funds from excise taxes or 
                other receipts properly creditable to such trust funds.
                    ``Payments to widows and heirs of deceased Members 
                of Congress (00-0215-0-1-801).
                    ``Postal Service Fund (18-4020-0-3-372).
                    ``Reimbursement to Federal Reserve Banks (20-0562-
                0-1-803).
                    ``Salaries of article III judges.
                    ``Soldiers and Airmen's Home, payment of claims 
                (84-8930-0-7-705).
                    ``Tennessee Valley Authority Fund, except nonpower 
                programs and activities (64-4110-0-3-999).
                    ``Tribal and Indian trust accounts within the 
                Department of the Interior which fund prior legal 
                obligations of the Government or which are established 
                pursuant to Acts of Congress regarding Federal 
                management of tribal real property or other fiduciary 
                responsibilities, including but not limited to Tribal 
                Special Fund (14-5265-0-2-452), Tribal Trust Fund (14-
                8030-0-7-452), Indian Land and Water Claims Settlements 
                (14-2303-0-1-452), White Earth Settlement (14-2204-0-1-
                452), and Indian Water Rights and Habitat Acquisition 
                (14-5505-0-2-303).
                    ``United Mine Workers of America 1992 Benefit Plan 
                (95-8260-0-7-551).
                    ``United Mine Workers of America 1993 Benefit Plan 
                (95-8535-0-7-551).
                    ``United Mine Workers of America Combined Benefit 
                Fund (95-8295-0-7-551).
                    ``United States Enrichment Corporation Fund (95-
                4054-0-3-271).
                    ``Universal Service Fund (27-5183-0-2-376); Vaccine 
                Injury Compensation (75-0320-0-1-551).
                    ``Vaccine Injury Compensation Program Trust Fund 
                (20-8175-0-7-551).
                    ``Western Area Power Administration, Borrowing 
                Authority, Recovery Act (89-4404-0-3-271).
            ``(B) The following Federal retirement and disability 
        accounts and activities shall be exempt from reduction under 
        any order issued under this part:
                    ``Black Lung Disability Trust Fund (20-8144-0-7-
                601).
                    ``Central Intelligence Agency Retirement and 
                Disability System Fund (56-3400-0-1-054).
                    ``Civil Service Retirement and Disability Fund (24-
                8135-0-7-602).
                    ``Comptrollers general retirement system (05-0107-
                0-1-801).
                    ``Contributions to U.S. Park Police annuity 
                benefits, Other Permanent Appropriations (14-9924-0-2-
                303).
                    ``Court of Appeals for Veterans Claims Retirement 
                Fund (95-8290-0-7-705).
                    ``Department of Defense Medicare-Eligible Retiree 
                Health Care Fund (97-5472-0-2-551).
                    ``District of Columbia Federal Pension Fund (20-
                5511-0-2-601).
                    ``District of Columbia Judicial Retirement and 
                Survivors Annuity Fund (20-8212-0-7-602).
                    ``Energy Employees Occupational Illness 
                Compensation Fund (16-1523-0-1-053).
                    ``Foreign National Employees Separation Pay (97-
                8165-0-7-051).
                    ``Foreign Service National Defined Contributions 
                Retirement Fund (19-5497-0-2-602).
                    ``Foreign Service National Separation Liability 
                Trust Fund (19-8340-0-7-602).
                    ``Foreign Service Retirement and Disability Fund 
                (19-8186-0-7-602).
                    ``Government Payment for Annuitants, Employees 
                Health Benefits (24-0206-0-1-551); Government Payment 
                for Annuitants, Employee Life Insurance (24-0500-0-1-
                602).
                    ``Judicial Officers' Retirement Fund (10-8122-0-7-
                602).
                    ``Judicial Survivors' Annuities Fund (10-8110-0-7-
                602).
                    ``Military Retirement Fund (97-8097-0-7-602).
                    ``National Railroad Retirement Investment Trust 
                (60-8118-0-7-601).
                    ``National Oceanic and Atmospheric Administration 
                retirement (13-1450-0-1-306).
                    ``Pensions for former Presidents (47-0105-0-1-802).
                    ``Postal Service Retiree Health Benefits Fund (24-
                5391-0-2-551).
                    ``Rail Industry Pension Fund (60-8011-0-7-601).
                    ``Retired Pay, Coast Guard (70-0602-0-1-403).
                    ``Retirement Pay and Medical Benefits for 
                Commissioned Officers, Public Health Service (75-0379-
                0-1-551).
                    ``Special Benefits for Disabled Coal Miners (16-
                0169-0-1-601).
                    ``Special Benefits, Federal Employees' Compensation 
                Act (16-1521-0-1-600).
                    ``Special Workers Compensation Expenses (16-9971-0-
                7-601).
                    ``Tax Court Judges Survivors Annuity Fund (23-8115-
                0-7-602).
                    ``United States Court of Federal Claims Judges' 
                Retirement Fund (10-8124-0-7-602).
                    ``United States Secret Service, DC Annuity (70-
                0400-0-1-751).
                    ``Voluntary Separation Incentive Fund (97-8335-0-7-
                051).
            ``(2) Prior legal obligations of the Government in the 
        following budget accounts and activities shall be exempt from 
        any order issued under this part:
                    ``Biomass Energy Development (20-0114-0-1-271).
                    ``Check Forgery Insurance Fund (20-4109-0-3-803).
                    ``Credit liquidating accounts.
                    ``Credit reestimates.
                    ``Employees Life Insurance Fund (24-8424-0-8-602).
                    ``Aviation Insurance Revolving Fund (69-4120-0-3-
                402).
                    ``Federal Crop Insurance Corporation Fund (12-4085-
                0-3-351).
                    ``Federal Emergency Management Agency, National 
                Flood Insurance Fund (58-4236-0-3-453).
                    ``Geothermal resources development fund (89-0206-0-
                1-271).
                    ``Homeowners Assistance Fund (97-4090-0-3-051).
                    ``International Trade Administration, Operations 
                and administration (13-1250-0-1-376).
                    ``Low-Rent Public Housing--Loans and Other Expenses 
                (86-4098-0-3-604).
                    ``Maritime Administration, War Risk Insurance 
                Revolving Fund (69-4302-0-3-403).
                    ``Natural Resource Damage Assessment Fund (14-1618-
                0-1-302).
                    ``Overseas Private Investment Corporation, 
                Noncredit Account (71-4184-0-3-151).
                    ``Pension Benefit Guaranty Corporation Fund (16-
                4204-0-3-601).
                    ``Rail service assistance within the Safety and 
                Operations account (69-0700-0-1-401).
                    ``San Joaquin Restoration Fund (14-5537-0-2-301).
                    ``Servicemembers' Group Life Insurance Fund (36-
                4009-0-3-701).
                    ``Terrorism Insurance Program (20-0123-0-1-376).
            ``(3) Nonbudgetary accounts and activities, including the 
        following, are exempt from sequestration under this part:
                    ``Credit financing accounts.
                    ``Deposit funds.
                    ``Federal Reserve.
                    ``Government Sponsored Enterprises, including the 
                Federal National Mortgage Association and the Federal 
                Home Loan Mortgage Corporation.
                    ``Thrift Savings Fund.
    ``(h) Low-Income Programs.--The following programs shall be exempt 
from reduction under any order issued under this part:
            ``Academic Competitiveness/Smart Grant Program (91-0205-0-
        1-502).
            ``Child Care Entitlement to States (75-1550-0-1-609).
            ``Child Enrollment Contingency Fund (75-5551-0-2-551).
            ``Child Nutrition Programs (with the exception of special 
        milk programs) (12-3539-0-1-605).
            ``Children's Health Insurance Fund (75-0515-0-1-551).
            ``Commodity Supplemental Food Program (12-3512-0-1-605).
            ``Contingency Fund (75-1522-0-1-609).
            ``Family Support Programs (75-1501-0-1-551).
            ``Federal Pell Grants under section 401 title IV of the 
        Higher Education Act.
            ``Grants to States for Low-Income House Projects in Lieu of 
        Low-Income Housing Credit Allocations, Recovery Act (20-0139-0-
        1-604).
            ``Grants to States for Medicaid (75-0512-0-1-551).
            ``Payments for Foster Care and Permanency (75-1545-0-1-
        609).
            ``Special Supplemental Nutrition Program for Women, 
        Infants, and Children (WIC) (12-3510-0-1-605).
            ``Supplemental Nutrition Assistance Program (12-3505-0-1-
        605).
            ``Supplemental Security Income Program (28-0406-0-1-609).
            ``Temporary Assistance for Needy Families (75-1552-0-1-
        609).''.
    (d) Economic Recovery Programs.--Section 255 of BBEDCA is amended 
by adding the following after subsection (h):
    ``(i) Economic Recovery Programs.--The following programs shall be 
exempt from reduction under any order issued under this part:
            ``All programs enacted in, or increases in programs 
        provided by, the American Recovery and Reinvestment Act of 
        2009.
            ``Exchange Stabilization Fund-Money Market Mutual Fund 
        Guaranty Facility (20-4274-0-3-376).
            ``Office of Financial Stability (20-0128-0-1-376).
            ``Financial Stabilization Reserve (20-0131-4-1-376).
            ``GSE Mortgage-Backed Securities Purchase Program Account 
        (20-0126-0-1-371).
            ``GSE Preferred Stock Purchase Agreements (20-0125-0-1-
        371).
            ``Office of Financial Stability (20-0128-0-1-376).
            ``Special Inspector General for the Troubled Asset Relief 
        Program (20-0133-0-1-376).
            ``Troubled Asset Relief Program Account (20-0132-0-1-376).
            ``Troubled Asset Relief Program Equity Purchase Program 
        (20-0134-0-1-376).
            ``Troubled Asset Relief Program, Home Affordable 
        Modification Program (20-0136-0-1-604).''.
                                 <all>
```