I 

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. LUJA ́N, 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. SA ́NCHEZ of 

California, Ms. LORETTA SANCHEZ of California, Mr. SARBANES, Mr. 

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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. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Statutory Pay-As-You-Go Act of 2009’’. 

6 (b) TABLE OF CONTENTS.—The table of contents is 

7 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. 

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1 SEC. 2. PURPOSE AND EXPIRATION. 

2 (a) PURPOSE.—The purpose of this Act is to reestab3 lish a statutory procedure to enforce a rule of budget neu4 trality on new tax and mandatory spending legislation en5 acted through the end of calendar year 2013, by creating 

6 an automatic statutory penalty that Congress and the 

7 President will seek to avoid. 

8 (b) EXPIRATION.—Sections 1 through 8 of this Act 

9 shall expire on the later of December 31, 2013, or the 

10 issuance and implementation of a sequestration order for 

11 fiscal year 2014 if one is required by this Act. 

12 SEC. 3. DEFINITIONS. 

13 As used in this Act— 

14 (1) The term ‘‘BBEDCA’’ means the Balanced 

15 Budget and Emergency Deficit Control Act of 1985. 

16 (2) The terms ‘‘appropriation Act’’, ‘‘budget 

17 authority’’, and ‘‘outlays’’ have the meanings given 

18 to them in section 3 of the Congressional Budget 

19 and Impoundment Control Act of 1974. 

20 (3) The terms ‘‘baseline’’, ‘‘budget year’’, 

21 ‘‘CBO’’, ‘‘current year’’, ‘‘deposit insurance’’, 

22 ‘‘OMB’’, ‘‘sequester’’, and ‘‘sequestration’’ have the 

23 meanings given to them in section 250 of BBEDCA. 

24 (4) The term ‘‘AMT’’ means the Alternative 

25 Minimum Tax for individuals under sections 55–59 

26 of the Internal Revenue Code of 1986, the term 

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1 ‘‘EGTRRA’’ means the Economic Growth and Tax 

2 Relief Reconciliation Act of 2001 (Public Law 107– 

3 16), and the term ‘‘JGTRRA’’ means the Jobs and 

4 Growth Tax Relief and Reconciliation Act of 2003 

5 (Public Law 108–27). 

6 (5) The term ‘‘budgetary effects’’ means the 

7 amounts by which PAYGO legislation changes man8 datory outlays or revenues relative to the baseline. 

9 Budgetary effects that increase mandatory outlays 

10 or decrease revenues are termed ‘‘costs’’ and budg11 etary effects that increase revenues or decrease man12 datory outlays are termed ‘‘savings’’. For purposes 

13 of these definitions, off-budget effects and debt serv14 ice effects are not counted as budgetary effects. 

15 (6) The term ‘‘debit’’ refers to the net total 

16 amount, when positive, by which costs recorded on 

17 the PAYGO ledger for a fiscal year exceed savings 

18 recorded on that ledger for that year. 

19 (7) The term ‘‘discretionary programs’’ refers 

20 to programs funded though appropriation Acts other 

21 than mandatory programs. 

22 (8) The term ‘‘entitlement law’’ means the stat23 utory mandate or requirement of the United States 

24 to incur a financial obligation unless that obligation 

25 is explicitly conditioned on the appropriation in submstockstill on PROD1PC66 with BILLS

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1 sequent legislation of sufficient funds for that pur2 pose. 

3 (9) The term ‘‘mandatory outlays’’ refers to 

4 outlays flowing from— 

5 (A) budget authority provided by laws 

6 other than appropriation Acts; 

7 (B) entitlement laws; or 

8 (C) the Supplemental Nutrition Assistance 

9 Program, and the term ‘‘mandatory programs’’ 

10 refers to programs that produce mandatory out11 lays. 

12 (10) The term ‘‘outyear’’ means a fiscal year 

13 that occurs one or more years after the budget year. 

14 (11) The term ‘‘PAYGO ledger’’ refers to a 

15 table maintained by OMB (A) containing a column 

16 for each fiscal year 2010 through 2014 and record17 ing in the applicable column or columns the average 

18 of the budgetary effects of each PAYGO Act enacted 

19 after the enactment of this Act and before January 

20 1, 2014, and (B) displaying the net sum for each of 

21 those fiscal years of the average budgetary effects of 

22 all such Acts. 

23 (12) The term ‘‘PAYGO legislation’’ or a 

24 ‘‘PAYGO Act’’ refer to legislation that is scored as 

25 increasing or decreasing governmental receipts or 

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1 mandatory outlays relative to the baseline, except 

2 that when those budgetary effects are caused by 

3 substantive legislative provisions in appropriation 

4 Acts, the current-year and budget-year effects of 

5 those provisions are not considered PAYGO legisla6 tion. 

7 (13) The term ‘‘timing shift’’ refers to a delay 

8 of the date on which mandatory outlays would other9 wise occur from the ninth outyear to the tenth out10 year or an acceleration of the date on which reve11 nues or offsetting receipts or collections would other12 wise occur from the tenth outyear to the ninth out13 year. 

14 SEC. 4. PAYGO ESTIMATES AND PAYGO LEDGER. 

15 (a) CBO ESTIMATES.—As soon as practicable after 

16 Congress completes action on any PAYGO legislation, 

17 CBO shall provide an estimate of its budgetary effects to 

18 OMB. 

19 (b) PAYGO LEDGER.—OMB shall maintain and 

20 make publicly available a document containing a PAYGO 

21 ledger and, not later than 7 days (excluding weekends and 

22 legal holidays) after the enactment of any PAYGO legisla23 tion, OMB shall record on that ledger its estimate of the 

24 legislation’s budgetary effects in each fiscal year, applying 

25 the look-back requirement of subsection (e) and the avermstockstill on PROD1PC66 with BILLS

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1 aging requirement of subsection (h). The document shall 

2 also explain any major differences between the OMB and 

3 CBO estimates of the budgetary effects of PAYGO legisla4 tion. 

5 (c) BASIS OF OMB ESTIMATES.—When estimating 

6 and recording the budgetary effects of a PAYGO Act, 

7 OMB shall employ economic and technical assumptions 

8 consistent with those in the President’s most recent Budg9 et submitted under section 1105 of title 31, United States 

10 Code, and shall use probabilistic methods where appro11 priate. Once it enters budgetary effects on the ledger, 

12 OMB shall not change the entries other than to correct 

13 errors. OMB’s assumptions, data, determinations, esti14 mates, and methodology under this Act are not subject 

15 to review in any judicial or administrative proceeding. 

16 (d) CURRENT POLICY EXCEPTIONS FOR CERTAIN

17 LEGISLATION.—Notwithstanding the definitions in para18 graphs (5), (11), and (12) of section 3, OMB estimates 

19 of provisions of legislation within the four areas of the 

20 budget identified in section 7 shall be entered on the 

21 PAYGO scorecard as specified in that section, and the es22 timates so entered shall be treated as the budgetary effects 

23 of PAYGO legislation for purposes of this section. 

24 (e) LOOK-BACK TO CAPTURE CURRENT-YEAR EF25 FECTS.—For purposes of this section, OMB shall treat the 

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1 budgetary effects of PAYGO legislation enacted during a 

2 session of Congress that occur during the current year as 

3 though they occurred in the budget year. 

4 (f) TIMING SHIFTS.—For purposes of this section, 

5 OMB and CBO shall not count timing shifts in their esti6 mates of the budgetary effects of PAYGO legislation. 

7 (g) EMERGENCY LEGISLATION.—If a provision of 

8 PAYGO legislation is enacted that the President des9 ignates as an emergency requirement and that the Con10 gress so designates in statute, OMB shall display the 

11 budgetary effects of that provision as an addendum in the 

12 document containing the PAYGO ledger but shall not 

13 record the budgetary effects in the ledger itself. 

14 (h) AVERAGING USED TO MEASURE COMPLIANCE

15 OVER TEN YEARS.—OMB shall cumulate the budgetary 

16 effects of a PAYGO Act over the budget year (which in17 cludes any look-back effects under subsection (e)) and the 

18 nine subsequent outyears, divide that cumulative total by 

19 ten, and enter the quotient in the budget-year column of 

20 the PAYGO ledger and in each subsequent column, if any, 

21 through the column for 2014. 

22 (i) SCOREKEEPING GUIDELINES.—OMB and CBO 

23 shall prepare estimates under this paragraph in conform24 ance with scorekeeping guidelines determined after conmstockstill on PROD1PC66 with BILLS

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1 sultation among the House and Senate Committees on the 

2 Budget, CBO, and OMB. 

3 (j) TREATMENT OF PROGRAM CONVERSIONS.—For 

4 purposes of this section, and notwithstanding other provi5 sions of this Act— 

6 (1) if legislation converts an identifiable ele7 ment of a mandatory program into a discretionary 

8 program (with that program element or a substan9 tially similar one continuing to be authorized), OMB 

10 and CBO shall not score the conversion of that ele11 ment as reducing mandatory outlays; and 

12 (2) if legislation converts an identifiable ele13 ment of a discretionary program into a mandatory 

14 program, OMB and CBO shall estimate the legisla15 tion’s budgetary effects in each year by subtracting 

16 the discretionary baseline levels of that element from 

17 the amount by which that legislation increases man18 datory outlays in that year. 

19 SEC. 5. ANNUAL REPORT AND SEQUESTRATION ORDER. 

20 (a) ANNUAL REPORT.—No later than 14 days (ex21 cluding weekends and holidays) after Congress adjourns 

22 to end a session, OMB shall make publicly available an 

23 annual PAYGO report and publish in the Federal Register 

24 a notice of the report and information on how it can be 

25 obtained. The report shall include an up-to-date document 

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1 containing a PAYGO ledger and information about esti2 mating differences as required by section 4(b), a descrip3 tion of and justification for any current policy exceptions 

4 made under section 4(d), information about emergency 

5 legislation (if any) required by section 4(g), information 

6 about any sequestration if required by subsection (b), and 

7 other data and explanations that enhance public under8 standing of this Act and actions taken under it. If Con9 gress does not adjourn to end a session, then for the pur10 poses of this Act it shall be deemed to have done so on 

11 December 31 of that session. 

12 (b) SEQUESTRATION ORDER.—If the annual report 

13 issued at the end of a session of Congress under sub14 section (a) shows a debit on the PAYGO ledger for the 

15 budget year, OMB shall prepare and the President shall 

16 issue an order sequestering budgetary resources from 

17 mandatory programs by enough to fully offset that debit, 

18 as prescribed in section 6. OMB shall include that order 

19 in the annual report and transmit it to the House of Rep20 resentatives and the Senate. If the President issues a se21 questration order, the annual report shall contain, for each 

22 budget account to be sequestered, estimates of the baseline 

23 level of budgetary resources subject to sequestration, the 

24 amount of budgetary resources to be sequestered, and the 

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1 outlay reductions that will occur in the budget year and 

2 the subsequent fiscal year because of that sequestration. 

3 SEC. 6. CALCULATING A SEQUESTRATION. 

4 (a) SEQUESTRATION BASE.—For purposes of this 

5 section, OMB shall assume that mandatory programs are 

6 at the levels in the baseline before the implementation of 

7 the sequestration order. 

8 (b) REDUCING NONEXEMPT BUDGETARY RE9 SOURCES BY A UNIFORM PERCENTAGE.—OMB shall cal10 culate the uniform percentage by which the budgetary re11 sources of nonexempt mandatory programs are to be se12 questered such that the outlay savings resulting from that 

13 sequestration, as calculated under subsection (c), shall 

14 fully offset the budget-year debit on the PAYGO ledger, 

15 if any. If the uniform percentage calculated under the 

16 prior sentence exceeds 4 percent, the Medicare programs 

17 described in section 256(d) of BBEDCA shall be reduced 

18 by 4 percent and the uniform percentage by which the 

19 budgetary resources of all other nonexempt mandatory 

20 programs are to be sequestered shall be increased, as nec21 essary, so that the sequestration of Medicare and of all 

22 other nonexempt mandatory programs together produces 

23 the required outlay savings. 

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1 (c) OUTLAY SAVINGS.—In determining the amount 

2 by which a sequestration offsets a budget-year debit, OMB 

3 shall count— 

4 (1) the amount by which the sequestration in a 

5 crop year of crop support payments, pursuant to 

6 section 256(j) of BBEDCA, reduces outlays in the 

7 budget year and the subsequent fiscal year; 

8 (2) the amount by which the sequestration of 

9 Medicare payments in the 12-month period following 

10 the sequestration order, pursuant to section 256(d) 

11 of BBEDCA, reduces outlays in the budget year and 

12 the subsequent fiscal year; and 

13 (3) the amount by which the sequestration in 

14 the budget year of the budgetary resources of other 

15 nonexempt mandatory programs reduces mandatory 

16 outlays in the budget year and in the subsequent fis17 cal year. 

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

19 POLICY. 

20 (a) PURPOSE.—The purpose of this section is to es21 tablish a temporary rule addressing the scoring of legisla22 tion affecting four areas of the budget and superseding 

23 the scoring rules otherwise provided by this Act to the ex24 tent they are inconsistent. The four areas covered by this 

25 section are— 

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1 (1) payments made under section 1848 of the 

2 Social Security Act (titled Payment for Physicians’ 

3 Services); 

4 (2) the Estate and Gift Tax under subtitle B of 

5 the Internal Revenue Code of 1986; 

6 (3) the AMT; and 

7 (4) provisions of EGTRRA or JGTRRA that 

8 amended the Internal Revenue Code of 1986 (or 

9 provisions in later statutes further amending the 

10 amendments made by EGTRRA or JGTRRA), other 

11 than— 

12 (A) the provisions of those two Acts that 

13 were made permanent by the Pension Protec14 tion Act of 2006 (Public Law 109–280); 

15 (B) amendments to the estate and gift tax 

16 referred to in paragraph (2); and 

17 (C) the AMT referred to in paragraph (3). 

18 (b) DURATION.—This section shall remain in effect 

19 through December 31, 2010, for each of the four areas 

20 specified in subsection (a), except that if the President de21 termines that legislation sufficiently consistent with cur22 rent policy as described in subsection (c)(2) has not been 

23 enacted in one or more of those four areas by that date, 

24 the provisions of this section will remain in effect with re25 spect to that area or those areas until such legislation has 

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1 been enacted or until December 31, 2011, whichever oc2 curs sooner. 

3 (c) CURRENT POLICY PROJECTION AND INITIAL

4 CURRENT LAW PROJECTIONS.— 

5 (1) For purposes of this section, the budgetary 

6 effects of legislation of the type referred to in sub7 section (a) shall be estimated relative to the baseline 

8 under section 257 of BBEDCA but the budgetary 

9 effects of that legislation shall be entered on the 

10 PAYGO ledger only to the extent that they fall out11 side a range bounded by the current policy projec12 tion under paragraph (2) and the initial current law 

13 projection under paragraph (3), as specified under 

14 subsections (d), (e), or (f), as applicable. Each of 

15 those two boundary projections shall be estimated 

16 using the policy assumptions stated in paragraph (2) 

17 or (3) as applicable, regardless of the enactment of 

18 subsequent legislation, but the estimates of the dol19 lar levels of those two boundary projections shall 

20 change— 

21 (A) when economic and technical assump22 tions change with the issuance of a new budget 

23 under section 1105 of title 31 United States 

24 Code; 

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1 (B) with changes in the assumed effective 

2 date of the legislation that is measured against 

3 those two projections; and 

4 (C) to the extent the policy assumptions 

5 under either of those two projections interact 

6 with other aspects of law, when legislation af7 fecting those other aspects of law is enacted. 

8 With respect only to legislation affecting the AMT 

9 or the amendments to provisions of the income tax 

10 referred to in subsection (a)(4), the dollar levels of 

11 those two boundary projections shall be estimated 

12 separately, and the determination of whether and 

13 the extent to which budgetary effects fall outside the 

14 boundaries shall be made separately, for each sepa15 rate provision within that legislation. 

16 (2) During the period specified in subsection 

17 (b), there shall exist a current policy projection in 

18 addition to the baseline specified in section 257 of 

19 BBEDCA. This projection shall— 

20 (A) with respect to payments made under 

21 section 1848 of the Social Security Act, assume 

22 that the applicable payment rates and payment 

23 policies in effect for 2009 remain in effect 

24 thereafter without change; 

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1 (B) with respect to the estate and gift tax, 

2 assume that the tax rates, nominal exemption 

3 amounts, and related parameters in effect for 

4 tax year 2009 remain in effect thereafter with5 out change; 

6 (C) with respect to the AMT, assume that 

7 the exemption amounts and related parameters 

8 in effect for tax year 2009 are increased in each 

9 subsequent year by an amount equal to the 

10 cost-of-living adjustment determined under sec11 tion 1(f)(3) of the Internal Revenue Code of 

12 1986 for the calendar year in which the taxable 

13 year begins, determined by substituting ‘‘cal14 endar year 2008’’ for ‘‘calendar year 1992’’ in 

15 subparagraph (B) thereof; and 

16 (D) with respect to the income tax provi17 sions referred to in subsection (a)(4), assume 

18 that each such separate provision scheduled on 

19 June 8, 2009, to be in effect for tax year 2010 

20 remains in effect thereafter without change, 

21 other than applicable indexing. 

22 (3) INITIAL CURRENT LAW PROJECTION.—Dur23 ing the period specified in subsection (b), there shall 

24 exist an initial current law projection in addition to 

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1 the baseline specified in section 257 of BBEDCA. 

2 This projection shall— 

3 (A) with respect to payments made under 

4 section 1848 of the Social Security Act, assume 

5 that the applicable payment rates and payment 

6 policies scheduled on June 8, 2009, to be in ef7 fect for each subsequent fiscal year shall be in 

8 effect as scheduled; 

9 (B) with respect to the estate and gift tax, 

10 assume that the tax rates, nominal exemption 

11 amounts, and related parameters scheduled on 

12 June 8, 2009, to be in effect for each subse13 quent tax year shall be in effect as scheduled; 

14 (C) with respect to the AMT, assume that 

15 the exemption amounts and related parameters 

16 scheduled on June 8, 2009, to be in effect for 

17 each subsequent tax year shall be in effect as 

18 scheduled; and 

19 (D) with respect to provisions of the in20 come tax referred to in subsection (a)(4), as21 sume that each such provision scheduled on 

22 June 8, 2009, to be in effect for each subse23 quent tax year shall be in effect as scheduled. 

24 (d) BUDGETARY EFFECTS OF CERTAIN MEDICARE

25 LEGISLATION.—Notwithstanding the definitions in paramstockstill on PROD1PC66 with BILLS

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1 graphs (5), (11), and (12) of section 3, OMB shall enter 

2 on the PAYGO ledger the budgetary effects of any provi3 sion of PAYGO legislation that amends or supersedes the 

4 system of payments under section 1848 of the Social Secu5 rity Act— 

6 (1) only to the extent that the level of net Medi7 care outlays are estimated to be higher in a fiscal 

8 year than if that provision of PAYGO legislation had 

9 instead enacted (or maintained) the current policy 

10 projection; or 

11 (2) only to the extent that the level of net Medi12 care outlays are estimated to be lower in a fiscal 

13 year than if that provision of PAYGO legislation had 

14 instead enacted (or maintained) the initial current 

15 law projection. 

16 (e) BUDGETARY EFFECTS OF ESTATE AND GIFT TAX

17 LEGISLATION.—Notwithstanding the definitions in para18 graphs (5), (11), and (12) of section 3, OMB shall enter 

19 on the PAYGO ledger the budgetary effects of any provi20 sion of PAYGO legislation that amends the estate and gift 

21 tax— 

22 (1) only to the extent that total revenues in a 

23 fiscal year are estimated to be changed because tax 

24 liability under the estate and gift tax is estimated to 

25 be higher in tax year 2010 than if that provision of 

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1 PAYGO legislation had instead enacted (or main2 tained) the current policy projection; 

3 (2) only to the extent that total revenues in a 

4 fiscal year are estimated to be changed because tax 

5 liability under the estate and gift tax is estimated to 

6 be lower in tax year 2010 than if that provision of 

7 PAYGO legislation had instead enacted (or main8 tained) the initial current law projection; 

9 (3) only to the extent that total revenues in a 

10 fiscal year are estimated to be changed because tax 

11 liability under the estate and gift tax is estimated to 

12 be lower in a tax year after 2010 than if that provi13 sion of PAYGO legislation had instead enacted (or 

14 maintained) the current policy projection; or 

15 (4) only to the extent that total revenues in a 

16 fiscal year are estimated to be changed because tax 

17 liability under the estate and gift tax is estimated to 

18 be higher in a tax year after 2010 than if that provi19 sion of PAYGO legislation had instead enacted (or 

20 maintained) the initial current law projection. 

21 (f) BUDGETARY EFFECTS OF AMT AND CERTAIN IN22 COME TAX LEGISLATION TAKEN SEPARATELY; STACKING

23 ORDER AND INTERACTIVE EFFECTS.—Notwithstanding 

24 the definitions in paragraphs (5), (11), and (12) of section 

25 3, OMB shall enter on the PAYGO ledger the budgetary 

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1 effects of any PAYGO legislation that amends the AMT 

2 or amends one of the income tax provisions referred to 

3 in subsection (a)(4)— 

4 (1) only to the extent that the level of income 

5 tax revenues is estimated to be lower and the level 

6 of outlays for refundable tax credits is estimated to 

7 be higher in a fiscal year than if that PAYGO legis8 lation had instead enacted (or maintained) the cur9 rent policy projection with respect to that provision 

10 of the income tax; or 

11 (2) only to the extent that the level of income 

12 tax revenues is estimated to be higher and the level 

13 of outlays for refundable tax credits is estimated to 

14 be lower in a fiscal year than if that PAYGO legisla15 tion had instead enacted (or maintained) the initial 

16 current law projection with respect to that provision 

17 of the income tax. 

18 In making estimates under this section of the budgetary 

19 effects of a PAYGO Act that amends both the AMT and 

20 at least one separate provision of the income tax, or 

21 amends more than one separate provision of the income 

22 tax, OMB shall first estimate the budgetary effects of any 

23 amendment to the AMT contained in that Act, and shall 

24 then estimate the budgetary effects of each remaining 

25 amendment to the income tax contained in that Act as 

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1 though any AMT amendments contained in that Act and 

2 the preceding amendments made by that Act had been en3 acted but the succeeding amendments had not. For pur4 poses of this section, each separate income tax rate shall 

5 be considered a separate provision. 

6 SEC. 8. APPLICATION OF BBEDCA. 

7 For purposes of this Act— 

8 (1) notwithstanding section 275 of BBEDCA, 

9 the provisions of sections 255, 256, and 257 of 

10 BBEDCA, as amended by this Act, shall apply to 

11 the provisions of this Act; 

12 (2) references in sections 255, 256, and 257 to 

13 ‘‘this part’’ shall be interpreted as applying to this 

14 Act; 

15 (3) references in sections 255, 256, and 257 of 

16 BBEDCA to ‘‘section 254’’ shall be interpreted as 

17 referencing section 5 of this Act; 

18 (4) the reference in section 256(b) of BBEDCA 

19 to ‘‘section 252 or 253’’ shall be interpreted as ref20 erencing section 5 of this Act; 

21 (5) the reference in section 256(d)(1) of 

22 BBEDCA to ‘‘section 252 or 253’’ shall be inter23 preted as referencing section 6 of this Act; 

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1 (6) the reference in section 256(d)(4) of 

2 BBEDCA to ‘‘section 252 or 253’’ shall be inter3 preted as referencing section 5 of this Act; 

4 (7) section 256(k) of the BBEDCA shall apply 

5 to a sequestration, if any, under this Act; 

6 (8) references in section 257(e) to ‘‘section 251, 

7 252, or 253’’ shall be interpreted as referencing sec8 tion 4 of this Act; and 

9 (9) the term ‘‘direct spending’’ in section 257 

10 of BBEDCA shall be interpreted as applying to 

11 mandatory programs or the funding for mandatory 

12 programs, as appropriate. 

13 SEC. 9. AMENDMENTS TO THE BASELINE. 

14 In section 257 of BBEDCA— 

15 (1) strike ‘‘entitlement authority’’ and insert in 

16 lieu thereof ‘‘entitlement laws’’; 

17 (2) amend subsection (b)(2)(A) to read— 

18 ‘‘(A) If any law expires before the budget year 

19 or before any outyear, then any program with esti20 mated current-year outlays of more than 

21 $50,000,000 operating under that law is assumed to 

22 continue to operate under that law as in effect im23 mediately before its expiration. For purposes of the 

24 preceding sentence, the Food, Conservation, and En25 ergy Act of 2008 or a similar successor Act is treatmstockstill on PROD1PC66 with BILLS

23 

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1 ed as a program assumed to be continued after its 

2 scheduled expiration.’’; 

3 (3) amend subsection (b)(2)(D) to read— 

4 ‘‘(D) Payments of social insurance, deposit in5 surance, pension insurance, and any similar statu6 tory financial insurance guarantees are assumed to 

7 be made in full regardless of the sufficiency of the 

8 funds supporting those programs, and funding for 

9 flood insurance and any similar contractual insur10 ance programs is assumed to be sufficient to fulfill 

11 existing contracts.’’; 

12 (4) amend subsection (c)(1) by striking ‘‘Budg13 etary resources’’ and inserting in lieu thereof ‘‘Ex14 cept as provided in subsection (d), budgetary re15 sources’’ and by striking ‘‘to offset pay absorption 

16 and for pay annualization’’ and inserting in lieu 

17 thereof ‘‘to adjust Pell grant funding’’; 

18 (5) amend subsection (c)(2) to read— 

19 ‘‘(2) EXPIRING HOUSING CONTRACTS.—New 

20 budget authority shall be added to the baseline in 

21 the budget year and the outyears to cover the costs 

22 of renewing expiring subsidized housing contracts 

23 that were funded in the current year under 

24 multiyear contracts whose budget authority was re25 corded in years prior to the current year. The 

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1 amount added (before adjusting for inflation) shall 

2 be the amount needed to renew the expiring con3 tracts through an uninterrupted series of 12-month 

4 contracts, assuming unchanged rental or equivalent 

5 prices.’’; 

6 (6) amend subsection (c)(4) to read— 

7 ‘‘(4) PELL GRANTS.—Notwithstanding para8 graph (1), new budget authority for the Pell grant 

9 program shall be included in the baseline in an 

10 amount sufficient to cover the costs of the program 

11 at the maximum award level specified in the most 

12 recently enacted full-year appropriation Acts, the 

13 budget authority in the budget year shall be ad14 justed for any cumulative funding shortfall or sur15 plus from prior academic years, and the adjustment 

16 for inflation under paragraph (5) shall not apply.’’; 

17 and 

18 (7) insert after subsection (c) the following 

19 (and redesignate the subsequent subsections accord20 ingly): 

21 ‘‘(d) DISASTERS.—Notwithstanding subsections (b) 

22 and (c), temporary mandatory funding and tax provisions 

23 related to major natural or man-made disasters shall be 

24 assumed to expire on schedule, and discretionary funding 

25 for major natural or man-made disaster shall not be promstockstill on PROD1PC66 with BILLS

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•HR 2920 IH

1 jected. In lieu, the baseline shall include a disaster allow2 ance that is not designated as mandatory or discretionary 

3 and is not allocated to any committee of Congress. The 

4 amount of budget authority assumed for this disaster al5 lowance shall equal a probabilistic estimate of the amount 

6 of Federal exposure to the risk of major natural or man7 made disasters occurring in the remainder of the current 

8 year, the budget year, and each outyear, and the amount 

9 of outlays shall equal the estimated expenditures of that 

10 budget authority. Major disasters shall include disaster 

11 costs other than those normally covered by routine fire12 fighting funding and normal and ongoing costs of disaster 

13 agencies, programs, or activities.’’. 

14 SEC. 10. TECHNICAL CORRECTIONS. 

15 (1) Section 250(c)(18) of BBEDCA is amended 

16 by striking ‘‘the expenses the Federal deposit insur17 ance agencies’’ and inserting ‘‘the expenses of the 

18 Federal deposit insurance agencies’’. 

19 (2) Section 256(k)(1) of BBEDCA is amended 

20 by striking ‘‘in paragraph (5)’’ and inserting ‘‘in 

21 paragraph (6)’’. 

22 SEC. 11. CONFORMING AMENDMENTS. 

23 (a) Section 256(a) of BBEDCA is repealed. 

24 (b) Section 256(b) of BBEDCA is amended by strik25 ing ‘‘origination fees under sections 438(c)(2) and 455(c) 

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•HR 2920 IH

1 of that Act shall each be increased by 0.50 percentage 

2 point.’’ and inserting in lieu thereof ‘‘origination fees 

3 under sections 438(c) (2) and (6) and 455(c) and loan 

4 processing and issuance fees under section 

5 428(f)(1)(A)(ii) of that Act shall each be increased by the 

6 uniform percentage specified in that sequestration order, 

7 and, for student loans originated during the period of the 

8 sequestration, special allowance payments under section 

9 438(b) of that Act accruing during the period of the se10 questration shall be reduced by the uniform percentage 

11 specified in that sequestration order.’’. 

12 (c) Section 256(c) of BBEDCA is repealed. 

13 (d) Section 256(d) of BBEDCA is amended— 

14 (1) by redesignating paragraphs (2), (3), and 

15 (4) as paragraphs (3), (5), and (6); 

16 (2) by amending paragraph (1) to read as fol17 lows: 

18 ‘‘(1) CALCULATION OF REDUCTION IN PAYMENT

19 AMOUNTS.—To achieve the total percentage reduc20 tion in those programs required by section 252 or 

21 253, subject to paragraph (2), and notwithstanding 

22 section 710 of the Social Security Act, OMB shall 

23 determine, and the applicable Presidential order 

24 under section 254 shall implement, the percentage 

25 reduction that shall apply, with respect to the health 

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•HR 2920 IH

1 insurance programs under title XVIII of the Social 

2 Security Act— 

3 ‘‘(A) in the case of parts A and B of such 

4 title, to individual payments for services fur5 nished during the one-year period beginning on 

6 the first day of the first month beginning after 

7 the date the order is issued (or, if later, the 

8 date specified in paragraph (4)); and 

9 ‘‘(B) in the case of parts C and D, to 

10 monthly payments under contracts under such 

11 parts for the same one-year period; 

12 such that the reduction made in payments under 

13 that order shall achieve the required total percentage 

14 reduction in those payments for that period.’’; 

15 (3) by inserting after paragraph (1) the fol16 lowing: 

17 ‘‘(2) UNIFORM REDUCTION RATE; MAXIMUM

18 PERMISSIBLE REDUCTION.—Reductions in payments 

19 for programs and activities under such title XVIII 

20 pursuant to a sequestration order under section 254 

21 shall be at a uniform rate, which shall not exceed 4 

22 percent, across all such programs and activities sub23 ject to such order.’’; 

24 (4) by inserting after paragraph (3), as redesig25 nated, the following: 

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•HR 2920 IH

1 ‘‘(4) TIMING OF SUBSEQUENT SEQUESTRATION

2 ORDER.—A sequestration order required by section 

3 252 or 253 with respect to programs under such 

4 title XVIII shall not take effect until the first month 

5 beginning after the end of the effective period of any 

6 prior sequestration order with respect to such pro7 grams, as determined in accordance with paragraph 

8 (1).’’; 

9 (5) in paragraph (6), as redesignated, to read 

10 as follows: 

11 ‘‘(6) SEQUESTRATION DISREGARDED IN COM12 PUTING PAYMENT AMOUNTS.—The Secretary of 

13 Health and Human Services shall not take into ac14 count any reductions in payment amounts which 

15 have been or may be effected under this part, for 

16 purposes of computing any adjustments to payment 

17 rates under such title XVIII, specifically including— 

18 ‘‘(A) the part C growth percentage under 

19 section 1853(c)(6); 

20 ‘‘(B) the part D annual growth rate under 

21 section 1860D–2(b)(6); and 

22 ‘‘(C) application of risk corridors to part D 

23 payment rates under section 1860D–15(e).’’; 

24 and 

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•HR 2920 IH

1 (6) by adding after paragraph (6), as redesig2 nated, the following: 

3 ‘‘(7) EXEMPTIONS FROM SEQUESTRATION.—In 

4 addition to the programs and activities specified in 

5 section 255, the following shall be exempt from se6 questration under this part: 

7 ‘‘(A) PART D LOW-INCOME SUBSIDIES.— 

8 Premium and cost-sharing subsidies under sec9 tion 1860D–14 of the Social Security Act. 

10 ‘‘(B) PART D CATASTROPHIC SUBSIDY.— 

11 Payments under section 1860D–15(b) and 

12 (e)(2)(B) of the Social Security Act. 

13 ‘‘(C) QUALIFIED INDIVIDUAL (QI) PRE14 MIUMS.—Payments to States for coverage of 

15 Medicare cost-sharing for certain low-income 

16 Medicare beneficiaries under section 1933 of 

17 the Social Security Act.’’. 

18 SEC. 12. EXEMPT PROGRAMS AND ACTIVITIES. 

19 (a) DESIGNATIONS.—Section 255 of BBEDCA is 

20 amended by redesignating paragraph (i) as (j) and strik21 ing ‘‘1998’’ and inserting in lieu thereof ‘‘2010’’. 

22 (b) SOCIAL SECURITY, VETERANS PROGRAMS, NET

23 INTEREST, AND TAX CREDITS.—Subsections (a) through 

24 (d) of section 255 of BBEDCA are amended to read as 

25 follows: 

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•HR 2920 IH

1 ‘‘(a) SOCIAL SECURITY BENEFITS AND TIER I RAIL2 ROAD RETIREMENT BENEFITS.—Benefits payable under 

3 the old-age, survivors, and disability insurance program 

4 established under title II of the Social Security Act (title 

5 42, United States Code, section 401 et seq.), and benefits 

6 payable under section 231b(a), 231b(f)(2), 231c(a), and 

7 231c(f) of title 45 United States Code, shall be exempt 

8 from reduction under any order issued under this part. 

9 ‘‘(b) VETERANS PROGRAMS.—The following pro10 grams shall be exempt from reduction under any order 

11 issued under this part— 

12 ‘‘Canteen Service Revolving Fund (36–4014–0– 

13 3–705). 

14 ‘‘National Service Life Insurance Fund (36– 

15 8132–0–7–701). 

16 ‘‘Native American Veteran Housing Loan Pro17 gram (36–1120–0–1–704). 

18 ‘‘Service-Disabled Veterans Insurance Fund 

19 (36–4012–0–3–701). 

20 ‘‘Veterans Insurance and Indemnities (36– 

21 0120–0–1–701). 

22 ‘‘Veterans Reopened Insurance Fund (36– 

23 4010–0–3–701). 

24 ‘‘Veterans Special Life Insurance Fund (36– 

25 8455–0–8–701). 

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•HR 2920 IH

1 ‘‘United States Government Life Insurance 

2 Fund (36–8150–0–7–701). 

3 ‘‘Benefits under chapter 21 of title 38, United 

4 States Code, relating to specially adapted housing 

5 and mortgage-protection life insurance for certain 

6 veterans with service-connected disabilities (36– 

7 0120–01–701). 

8 ‘‘Compensation and Pensions (36–0102–0–1– 

9 701) to include Burial Benefits under chapter 23 of 

10 title 38. 

11 ‘‘Benefits under chapter 33 of title 38, United 

12 States Code, relating to educational assistance pro13 vided by the Post-9/11 Educational Assistance Act 

14 of 2008 (36–0137–0–1–702). 

15 ‘‘Benefits under chapter 39 of title 38, United 

16 States Code, relating to automobiles and adaptive 

17 equipment for certain disabled veterans and mem18 bers of the Armed Forces (36–0137–0–1–702). 

19 ‘‘Benefits under chapter 35 of title 38, United 

20 States Code, related to educational assistance for 

21 survivors and dependents of certain veterans with 

22 service-connected disabilities (36–0137–0–1–702). 

23 ‘‘Assistance and services under chapter 31 of 

24 title 38, United States Code, relating to training and 

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32 

•HR 2920 IH

1 rehabilitation for certain veterans with service-con2 nected disabilities (36–0137–0–1–702). 

3 ‘‘Benefits under subchapters I, II, and III of 

4 chapter 37 of title 38, United States Code, relating 

5 to housing loans for certain veterans and for the 

6 spouses and surviving spouses of certain veterans 

7 Housing Program Account (36–1119–0–1–704). 

8 ‘‘Special Benefits for Certain World War II 

9 Veterans (28–0401–0–1–701). 

10 ‘‘(c) NET INTEREST.—No reduction of payments for 

11 net interest (all of major functional category 900) shall 

12 be made under any order issued under this part. 

13 ‘‘(d) REFUNDABLE INCOME TAX CREDITS.—Pay14 ments to individuals made pursuant to provisions of the 

15 Internal Revenue Code of 1986 establishing refundable 

16 tax credits shall be exempt from reduction under any order 

17 issued under this part.’’. 

18 (c) OTHER PROGRAMS AND ACTIVITIES, LOW-IN19 COME PROGRAMS, AND ECONOMIC RECOVERY PRO20 GRAMS.—Subsections (g) and (h) of section 255 of 

21 BBEDCA are amended to read as follows: 

22 ‘‘(g) OTHER PROGRAMS AND ACTIVITIES.— 

23 ‘‘(1)(A) The following budget accounts and ac24 tivities shall be exempt from reduction under any 

25 order issued under this part: 

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•HR 2920 IH

1 ‘‘Activities resulting from private dona2 tions, bequests, or voluntary contributions to 

3 the Government. 

4 ‘‘Activities financed by voluntary payments 

5 to the Government for goods or services to be 

6 provided for such payments. 

7 ‘‘Administration of Territories, Northern 

8 Mariana Islands Covenant grants (14–0412–0– 

9 1–808). 

10 ‘‘Advances to the Unemployment Trust 

11 Fund and Other Funds (16–0327–0–1–600). 

12 ‘‘Appropriations for the District of Colum13 bia (to the extent they are appropriations of lo14 cally raised funds). 

15 ‘‘Black Lung Disability Trust Fund Refi16 nancing (16–0329–0–1–601). 

17 ‘‘Bonneville Power Administration Fund 

18 and borrowing authority established pursuant 

19 to section 13 of Public Law 93–454 (1974), as 

20 amended (89–4045–0–3–271). 

21 ‘‘Claims, Judgments, and Relief Acts (20– 

22 1895–0–1–808). 

23 ‘‘Colorado River Basins Power Marketing 

24 Fund, Western Area Power Administration 

25 (89–4452–0–3–271). 

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•HR 2920 IH

1 ‘‘Compact of Free Association (14–0415– 

2 0–1–808). 

3 ‘‘Compensation of the President (11– 

4 0209–0–1–802). 

5 ‘‘Construction, Rehabilitation, Operation 

6 and Maintenance, Western Area Power Admin7 istration (89–5068–0–2–271). 

8 ‘‘Comptroller of the Currency, Assessment 

9 Funds (20–8413–0–8–373). 

10 ‘‘Continuing Fund, Southeastern Power 

11 Administration (89–5653–0–2–271). 

12 ‘‘Continuing Fund, Southwestern Power 

13 Administration (89–5649–0–2–271). 

14 ‘‘Dual Benefits Payments Account (60– 

15 0111–0–1–601). 

16 ‘‘Emergency Fund, Western Area Power 

17 Administration (89–5069–0–2–271). 

18 ‘‘Exchange Stabilization Fund (20–4444– 

19 0–3–155); Federal Deposit Insurance Corpora20 tion, Deposit Insurance Fund (51–4596–4–4– 

21 373). 

22 ‘‘Federal Deposit Insurance Corporation, 

23 FSLIC Resolution Fund (51–4065–0–3–373). 

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•HR 2920 IH

1 ‘‘Federal Deposit Insurance Corporation, 

2 Noninterest Bearing Transaction Account 

3 Guarantee (51–4458–0–3–373). 

4 ‘‘Federal Deposit Insurance Corporation, 

5 Office of Inspector General (51–4595–0–4– 

6 373). 

7 ‘‘Federal Deposit Insurance Corporation, 

8 Senior Unsecured Debt Guarantee (51–4457– 

9 0–3–373). 

10 ‘‘Federal Housing Finance Agency, Admin11 istrative Expenses (95–5532–0–2–371). 

12 ‘‘Federal Payment to the District of Co13 lumbia Judicial Retirement and Survivors An14 nuity Fund (20–1713–0–1–752). 

15 ‘‘Federal Payment to the District of Co16 lumbia Pension Fund (20–1714–0–1–601). 

17 ‘‘Federal Payments to the Railroad Retire18 ment Accounts (60–0113–0–1–601). 

19 ‘‘Federal Reserve Bank Reimbursement 

20 Fund (20–1884–0–1–803). 

21 ‘‘Financial Agent Services (20–1802–0–1– 

22 803). 

23 ‘‘Foreign Military Sales Trust Fund (11– 

24 8242–0–7–155). 

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•HR 2920 IH

1 ‘‘Hazardous Waste Management, Con2 servation Reserve Program (12–4336–0–3– 

3 999). 

4 ‘‘Health Education Assistance Loans Pro5 gram Account (75–0340–0–1–552). 

6 ‘‘Host Nation Support Fund for Relocation 

7 (97–8337–0–7–051). 

8 ‘‘Internal Revenue Collections for Puerto 

9 Rico (20–5737–0–2–806). 

10 ‘‘Intragovernmental funds, including those 

11 from which the outlays are derived primarily 

12 from resources paid in from other government 

13 accounts, except to the extent such funds are 

14 augmented by direct appropriations for the fis15 cal year during which an order is in effect. 

16 ‘‘Medical Facilities Guarantee and Loan 

17 Fund (75–9931–0–3–551). 

18 ‘‘National Credit Union Administration, 

19 Central Liquidity Facility (25–4470–0–3–373). 

20 ‘‘National Credit Union Administration, 

21 Corporate Credit Union Share Guarantee Pro22 gram (25–4476–0–3–376). 

23 ‘‘National Credit Union Administration, 

24 Credit Union Homeowners Affordability Relief 

25 Program (25–4473–0–3–371). 

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•HR 2920 IH

1 ‘‘National Credit Union Administration, 

2 Credit Union Share Insurance Fund (25–4468– 

3 0–3–373). 

4 ‘‘National Credit Union Administration, 

5 Credit Union System Investment Program (25– 

6 4474–0–3–376). 

7 ‘‘National Credit Union Administration, 

8 Operating fund (25–4056–0–3–373). 

9 ‘‘National Credit Union Administration, 

10 Share Insurance Fund Corporate Debt Guar11 antee Program (25–4469–0–3–376). 

12 ‘‘National Credit Union Administration, 

13 U.S. Central Federal Credit Union Capital Pro14 gram (25–4475–0–3–376). 

15 ‘‘Office of Thrift Supervision (20–4108–0– 

16 3–373). 

17 ‘‘Operation and Maintenance, Alaska 

18 Power Administration (89–0302–0–1–271). 

19 ‘‘Operation and Maintenance, Southeastern 

20 Power Administration (89–0302–0–1–271). 

21 ‘‘Operation and Maintenance, South22 western Power Administration (89–0303–0–1– 

23 271). 

24 ‘‘Panama Canal Commission Compensation 

25 Fund (16–5155–0–2–602). 

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•HR 2920 IH

1 ‘‘Payment of Vietnam and USS Pueblo 

2 prisoner-of-war claims within the Salaries and 

3 Expenses, Foreign Claims Settlement account 

4 (15–0100–0–1–153). 

5 ‘‘Payment to Civil Service Retirement and 

6 Disability Fund (24–0200–0–1–805). 

7 ‘‘Payment to Department of Defense Medi8 care-Eligible Retiree Health Care Fund (97– 

9 0850–0–1–054). 

10 ‘‘Payment to Judiciary Trust Funds (10– 

11 0941–0–1–752). 

12 ‘‘Payment to Military Retirement Fund 

13 (97–0040–0–1–054). 

14 ‘‘Payment to the Foreign Service Retire15 ment and Disability Fund (19–0540–0–1–153). 

16 ‘‘Payments to Copyright Owners (03– 

17 5175–0–2–376). 

18 ‘‘Payments to Health Care Trust Funds 

19 (75–0580–0–1–571). 

20 ‘‘Payments to Social Security Trust Funds 

21 (28–0404–0–1–651). 

22 ‘‘Payments to the United States Terri23 tories, Fiscal Assistance (14–0418–0–1–806). 

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•HR 2920 IH

1 ‘‘Payments to trust funds from excise 

2 taxes or other receipts properly creditable to 

3 such trust funds. 

4 ‘‘Payments to widows and heirs of de5 ceased Members of Congress (00–0215–0–1– 

6 801). 

7 ‘‘Postal Service Fund (18–4020–0–3–372). 

8 ‘‘Reimbursement to Federal Reserve Banks 

9 (20–0562–0–1–803). 

10 ‘‘Salaries of article III judges. 

11 ‘‘Soldiers and Airmen’s Home, payment of 

12 claims (84–8930–0–7–705). 

13 ‘‘Tennessee Valley Authority Fund, except 

14 nonpower programs and activities (64–4110–0– 

15 3–999). 

16 ‘‘Tribal and Indian trust accounts within 

17 the Department of the Interior which fund 

18 prior legal obligations of the Government or 

19 which are established pursuant to Acts of Con20 gress regarding Federal management of tribal 

21 real property or other fiduciary responsibilities, 

22 including but not limited to Tribal Special 

23 Fund (14–5265–0–2–452), Tribal Trust Fund 

24 (14–8030–0–7–452), Indian Land and Water 

25 Claims Settlements (14–2303–0–1–452), White 

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•HR 2920 IH

1 Earth Settlement (14–2204–0–1–452), and In2 dian Water Rights and Habitat Acquisition 

3 (14–5505–0–2–303). 

4 ‘‘United Mine Workers of America 1992 

5 Benefit Plan (95–8260–0–7–551). 

6 ‘‘United Mine Workers of America 1993 

7 Benefit Plan (95–8535–0–7–551). 

8 ‘‘United Mine Workers of America Com9 bined Benefit Fund (95–8295–0–7–551). 

10 ‘‘United States Enrichment Corporation 

11 Fund (95–4054–0–3–271). 

12 ‘‘Universal Service Fund (27–5183–0–2– 

13 376); Vaccine Injury Compensation (75–0320– 

14 0–1–551). 

15 ‘‘Vaccine Injury Compensation Program 

16 Trust Fund (20–8175–0–7–551). 

17 ‘‘Western Area Power Administration, 

18 Borrowing Authority, Recovery Act (89–4404– 

19 0–3–271). 

20 ‘‘(B) The following Federal retirement and dis21 ability accounts and activities shall be exempt from 

22 reduction under any order issued under this part: 

23 ‘‘Black Lung Disability Trust Fund (20– 

24 8144–0–7–601). 

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•HR 2920 IH

1 ‘‘Central Intelligence Agency Retirement 

2 and Disability System Fund (56–3400–0–1– 

3 054). 

4 ‘‘Civil Service Retirement and Disability 

5 Fund (24–8135–0–7–602). 

6 ‘‘Comptrollers general retirement system 

7 (05–0107–0–1–801). 

8 ‘‘Contributions to U.S. Park Police annu9 ity benefits, Other Permanent Appropriations 

10 (14–9924–0–2–303). 

11 ‘‘Court of Appeals for Veterans Claims Re12 tirement Fund (95–8290–0–7–705). 

13 ‘‘Department of Defense Medicare-Eligible 

14 Retiree Health Care Fund (97–5472–0–2–551). 

15 ‘‘District of Columbia Federal Pension 

16 Fund (20–5511–0–2–601). 

17 ‘‘District of Columbia Judicial Retirement 

18 and Survivors Annuity Fund (20–8212–0–7– 

19 602). 

20 ‘‘Energy Employees Occupational Illness 

21 Compensation Fund (16–1523–0–1–053). 

22 ‘‘Foreign National Employees Separation 

23 Pay (97–8165–0–7–051). 

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•HR 2920 IH

1 ‘‘Foreign Service National Defined Con2 tributions Retirement Fund (19–5497–0–2– 

3 602). 

4 ‘‘Foreign Service National Separation Li5 ability Trust Fund (19–8340–0–7–602). 

6 ‘‘Foreign Service Retirement and Dis7 ability Fund (19–8186–0–7–602). 

8 ‘‘Government Payment for Annuitants, 

9 Employees Health Benefits (24–0206–0–1– 

10 551); Government Payment for Annuitants, 

11 Employee Life Insurance (24–0500–0–1–602). 

12 ‘‘Judicial Officers’ Retirement Fund (10– 

13 8122–0–7–602). 

14 ‘‘Judicial Survivors’ Annuities Fund (10– 

15 8110–0–7–602). 

16 ‘‘Military Retirement Fund (97–8097–0– 

17 7–602). 

18 ‘‘National Railroad Retirement Investment 

19 Trust (60–8118–0–7–601). 

20 ‘‘National Oceanic and Atmospheric Ad21 ministration retirement (13–1450–0–1–306). 

22 ‘‘Pensions for former Presidents (47– 

23 0105–0–1–802). 

24 ‘‘Postal Service Retiree Health Benefits 

25 Fund (24–5391–0–2–551). 

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•HR 2920 IH

1 ‘‘Rail Industry Pension Fund (60–8011– 

2 0–7–601). 

3 ‘‘Retired Pay, Coast Guard (70–0602–0– 

4 1–403). 

5 ‘‘Retirement Pay and Medical Benefits for 

6 Commissioned Officers, Public Health Service 

7 (75–0379–0–1–551). 

8 ‘‘Special Benefits for Disabled Coal Miners 

9 (16–0169–0–1–601). 

10 ‘‘Special Benefits, Federal Employees’ 

11 Compensation Act (16–1521–0–1–600). 

12 ‘‘Special Workers Compensation Expenses 

13 (16–9971–0–7–601). 

14 ‘‘Tax Court Judges Survivors Annuity 

15 Fund (23–8115–0–7–602). 

16 ‘‘United States Court of Federal Claims 

17 Judges’ Retirement Fund (10–8124–0–7–602). 

18 ‘‘United States Secret Service, DC Annuity 

19 (70–0400–0–1–751). 

20 ‘‘Voluntary Separation Incentive Fund 

21 (97–8335–0–7–051). 

22 ‘‘(2) Prior legal obligations of the Government 

23 in the following budget accounts and activities shall 

24 be exempt from any order issued under this part: 

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•HR 2920 IH

1 ‘‘Biomass Energy Development (20–0114– 

2 0–1–271). 

3 ‘‘Check Forgery Insurance Fund (20– 

4 4109–0–3–803). 

5 ‘‘Credit liquidating accounts. 

6 ‘‘Credit reestimates. 

7 ‘‘Employees Life Insurance Fund (24– 

8 8424–0–8–602). 

9 ‘‘Aviation Insurance Revolving Fund (69– 

10 4120–0–3–402). 

11 ‘‘Federal Crop Insurance Corporation 

12 Fund (12–4085–0–3–351). 

13 ‘‘Federal Emergency Management Agency, 

14 National Flood Insurance Fund (58–4236–0– 

15 3–453). 

16 ‘‘Geothermal resources development fund 

17 (89–0206–0–1–271). 

18 ‘‘Homeowners Assistance Fund (97–4090– 

19 0–3–051). 

20 ‘‘International Trade Administration, Op21 erations and administration (13–1250–0–1– 

22 376). 

23 ‘‘Low-Rent Public Housing—Loans and 

24 Other Expenses (86–4098–0–3–604). 

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45 

•HR 2920 IH

1 ‘‘Maritime Administration, War Risk In2 surance Revolving Fund (69–4302–0–3–403). 

3 ‘‘Natural Resource Damage Assessment 

4 Fund (14–1618–0–1–302). 

5 ‘‘Overseas Private Investment Corporation, 

6 Noncredit Account (71–4184–0–3–151). 

7 ‘‘Pension Benefit Guaranty Corporation 

8 Fund (16–4204–0–3–601). 

9 ‘‘Rail service assistance within the Safety 

10 and Operations account (69–0700–0–1–401). 

11 ‘‘San Joaquin Restoration Fund (14– 

12 5537–0–2–301). 

13 ‘‘Servicemembers’ Group Life Insurance 

14 Fund (36–4009–0–3–701). 

15 ‘‘Terrorism Insurance Program (20–0123– 

16 0–1–376). 

17 ‘‘(3) Nonbudgetary accounts and activities, in18 cluding the following, are exempt from sequestration 

19 under this part: 

20 ‘‘Credit financing accounts. 

21 ‘‘Deposit funds. 

22 ‘‘Federal Reserve. 

23 ‘‘Government Sponsored Enterprises, in24 cluding the Federal National Mortgage Associamstockstill on PROD1PC66 with BILLS

46 

•HR 2920 IH

1 tion and the Federal Home Loan Mortgage 

2 Corporation. 

3 ‘‘Thrift Savings Fund. 

4 ‘‘(h) LOW-INCOME PROGRAMS.—The following pro5 grams shall be exempt from reduction under any order 

6 issued under this part: 

7 ‘‘Academic Competitiveness/Smart Grant Pro8 gram (91–0205–0–1–502). 

9 ‘‘Child Care Entitlement to States (75–1550– 

10 0–1–609). 

11 ‘‘Child Enrollment Contingency Fund (75– 

12 5551–0–2–551). 

13 ‘‘Child Nutrition Programs (with the exception 

14 of special milk programs) (12–3539–0–1–605). 

15 ‘‘Children’s Health Insurance Fund (75–0515– 

16 0–1–551). 

17 ‘‘Commodity Supplemental Food Program (12– 

18 3512–0–1–605). 

19 ‘‘Contingency Fund (75–1522–0–1–609). 

20 ‘‘Family Support Programs (75–1501–0–1– 

21 551). 

22 ‘‘Federal Pell Grants under section 401 title IV 

23 of the Higher Education Act. 

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47 

•HR 2920 IH

1 ‘‘Grants to States for Low-Income House 

2 Projects in Lieu of Low-Income Housing Credit Al3 locations, Recovery Act (20–0139–0–1–604). 

4 ‘‘Grants to States for Medicaid (75–0512–0–1– 

5 551). 

6 ‘‘Payments for Foster Care and Permanency 

7 (75–1545–0–1–609). 

8 ‘‘Special Supplemental Nutrition Program for 

9 Women, Infants, and Children (WIC) (12–3510–0– 

10 1–605). 

11 ‘‘Supplemental Nutrition Assistance Program 

12 (12–3505–0–1–605). 

13 ‘‘Supplemental Security Income Program (28– 

14 0406–0–1–609). 

15 ‘‘Temporary Assistance for Needy Families 

16 (75–1552–0–1–609).’’. 

17 (d) ECONOMIC RECOVERY PROGRAMS.—Section 255 

18 of BBEDCA is amended by adding the following after 

19 subsection (h): 

20 ‘‘(i) ECONOMIC RECOVERY PROGRAMS.—The fol21 lowing programs shall be exempt from reduction under 

22 any order issued under this part: 

23 ‘‘All programs enacted in, or increases in pro24 grams provided by, the American Recovery and Re25 investment Act of 2009. 

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48 

•HR 2920 IH

1 ‘‘Exchange Stabilization Fund-Money Market 

2 Mutual Fund Guaranty Facility (20–4274–0–3– 

3 376). 

4 ‘‘Office of Financial Stability (20–0128–0–1– 

5 376). 

6 ‘‘Financial Stabilization Reserve (20–0131–4– 

7 1–376). 

8 ‘‘GSE Mortgage-Backed Securities Purchase 

9 Program Account (20–0126–0–1–371). 

10 ‘‘GSE Preferred Stock Purchase Agreements 

11 (20–0125–0–1–371). 

12 ‘‘Office of Financial Stability (20–0128–0–1– 

13 376). 

14 ‘‘Special Inspector General for the Troubled 

15 Asset Relief Program (20–0133–0–1–376). 

16 ‘‘Troubled Asset Relief Program Account (20– 

17 0132–0–1–376). 

18 ‘‘Troubled Asset Relief Program Equity Pur19 chase Program (20–0134–0–1–376). 

20 ‘‘Troubled Asset Relief Program, Home Afford21 able Modification Program (20–0136–0–1–604).’’. 

Æ 

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