To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to eliminate the firewalls between defense and nondefense discretionary spending limits.

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to eliminate the firewalls between defense and nondefense discretionary spending limits. 1. Discretionary spending limits for fiscal years 2016 through 2021 Paragraphs (3) through (8) of section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 901(c) (3) for fiscal year 2016, for the discretionary category $1,016,582,000,000; (4) for fiscal year 2017, for the discretionary category $1,039,599,000,000; (5) for fiscal year 2018, for the discretionary category $1,064,323,000,000; (6) for fiscal year 2019, for the discretionary category $1,091,408,000,000; (7) for fiscal year 2020, for the discretionary category $1,118,618,000,000; and (8) for fiscal year 2021, for the discretionary category $1,145,316,000,000; . 2. Direct spending sequestration Section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 901a 251A. Direct spending sequestration (a) Implementing direct spending reductions for Fiscal years 2016–2024 In its sequestration preview report for fiscal years 2016 through 2024, OMB shall prepare and the President shall order a sequestration, effective upon issuance, of nonexempt direct spending to achieve the direct spending reductions set forth below: (1) for fiscal year 2016, 6.8 percent for nondefense and 9.3 percent for defense; (2) for fiscal year 2017, 6.9 percent for nondefense and 9.1 percent for defense; (3) for fiscal year 2018, 6.8 percent for nondefense and 8.9 percent for defense; (4) for fiscal year 2019, 6.5 percent for nondefense and 8.8 percent for defense; (5) for fiscal year 2020, 6.1 percent for nondefense and 8.6 percent for defense; and (6) for fiscal years 2021 through 2024, 5.9 percent for nondefense and 8.4 percent for defense. When implementing the sequestration of direct spending pursuant to this subsection, OMB shall follow the procedures specified in section 6 of the Statutory Pay-As-You-Go Act of 2010, the exemptions specified in section 255, and the special rules specified in section 256, except that the percentage reduction for the Medicare programs specified in section 256(d) shall not be more than 2 percent for a fiscal year. (b) Implementation of reductions Any reductions imposed under this section shall be implemented in accordance with section 256(k). (c) Report On the dates specified in subsection (a), OMB shall submit a report to Congress containing a listing of the reductions required for each nonexempt direct spending account, and any other data and explanations that enhance public understanding of this title and actions taken under it. .

Summary: This bill amends the Balanced Budget and Emergency Deficit Control Act of 1985 to modify provisions that allocate spending between defense and nondefense spending. The bill replaces the separate annual discretionary spending limits (commonly known as firewalls) for security and nonsecurity spending for FY2016-FY2021, with annual limits for total discretionary spending. The bill also revises procedures for sequestration, which is a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals. The requirement that automatic cuts be evenly distributed between defense and nondefense spending is replaced with specified cuts in nondefense and defense direct spending for FY2016-FY2021.