I 
112TH CONGRESS 
1ST SESSION H. R. 1848 
To prevent a fiscal crisis by enacting legislation to balance the Federal 
budget through reductions of discretionary and mandatory spending. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2011 
Mr. MACK (for himself, Mr. BROUN of Georgia, Mrs. LUMMIS, Mr. RIBBLE, 
Mr. STUTZMAN, Mr. CAMPBELL, Mr. BARTLETT, Mr. KING of Iowa, Mr. 
ROSS of Florida, Mr. MILLER of Florida, Mr. DUNCAN of Tennessee, Mr. 
WEST, Mr. GARRETT, and Mr. GINGREY of Georgia) introduced the fol-
lowing bill; which was referred to the Committee on the Budget, and in 
addition to the Committee on Rules, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To prevent a fiscal crisis by enacting legislation to balance 
the Federal budget through reductions of discretionary 
and mandatory spending. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘One Percent Spending 
Reduction Act of 2011’’. 
SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds the following: 
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(1) The fiscal crisis faced by the Federal Gov-
ernment demands immediate action. 
(2) The dramatic growth in spending and debt 
in recent years threatens our economic and national 
security: 
(A) Federal spending has grown from 18 
percent of GDP in 2001 to 24 percent of GDP 
in 2010. 
(B) Total Federal debt exceeds $14 trillion 
and has increased $4 trillion in the past three 
years alone. 
(C) Without action, the Federal govern-
ment will continue to run massive deficits in the 
next decade and total Federal debt will rise to 
$24 trillion by 2021. 
(D) Interest payments on this debt will 
soon rise to the point where balancing the 
budget as a matter of policy is beyond the reach 
of Congress. 
(3) From 1980 to 2010, Federal revenues aver-
aged 18 percent of GDP and are projected to return 
to that level within the next decade. 
(4) Absent reform, the growth of Social Secu-
rity, Medicare, and Medicaid will overwhelm all 
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other Federal programs and consume all projected 
tax revenues. 
(b) PURPOSE.—The purpose of this Act is to address 
the fiscal crisis by— 
(1) acting quickly to balance the Federal budg-
et and eliminate the parade of deficits and bal-
looning interest payments; 
(2) achieving balance by reducing spending one 
percent per year until spending equals projected 
long-term revenues; and 
(3) reforming entitlement programs to ensure 
long-term fiscal stability and balance. 
SEC. 3. ESTABLISHMENT AND ENFORCEMENT OF SPEND-
ING CAPS. 
(a) OUTLAY
CAPS.—The Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by in-
serting after section 253 the following new section: 
‘‘SEC. 253A. ESTABLISHING OUTLAY CAPS. 
‘‘(a) OUTLAY CAPS.—In this section, the term ‘outlay 
cap’ means: 
‘‘(1) FISCAL YEAR 2012.—For fiscal year 2012, 
the aggregate projected outlays (less net interest 
payments) 
for 
fiscal 
year 
2012 
shall 
be 
$3,382,000,000,000, less one percent. 
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‘‘(2) FISCAL YEAR 2013.—For fiscal year 2013, 
the aggregate projected outlays (less net interest 
payments) for fiscal year 2013 shall be the amount 
computed under paragraph (1), less one percent. 
‘‘(3) FISCAL YEAR 2014.—For fiscal year 2014, 
the aggregate projected outlays (less net interest 
payments) for fiscal year 2014 shall be the amount 
computed under paragraph (2), less one percent. 
‘‘(4) FISCAL YEAR 2015.—For fiscal year 2015, 
the aggregate projected outlays (less net interest 
payments) for fiscal year 2015 shall be the amount 
computed under paragraph (3), less one percent. 
‘‘(5) FISCAL YEAR 2016.—For fiscal year 2016, 
the aggregate projected outlays (less net interest 
payments) for fiscal year 2016 shall be the amount 
computed under paragraph (4), less one percent. 
‘‘(6) FISCAL YEAR 2017.—For fiscal year 2017, 
the aggregate projected outlays (less net interest 
payments) for fiscal year 2017 shall be the amount 
computed under paragraph (5), less one percent. 
‘‘(7) FISCAL YEAR 2018 AND SUBSEQUENT FIS-
CAL YEARS.—(A) For fiscal year 2018 and each sub-
sequent fiscal year, the aggregate projected outlays 
shall be 18 percent of the gross domestic product for 
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that fiscal year as estimated by OMB prior to March 
of the previous fiscal year. 
‘‘(B) Notwithstanding paragraph (A), for any 
fiscal year beginning with fiscal year 2019, the ag-
gregate projected outlays may not be less than the 
aggregate projected outlays for the preceding fiscal 
year. 
‘‘(b) SEQUESTRATION.— 
‘‘(1) IN GENERAL.— 
‘‘(A) EXCESS SPENDING.—Not later than 
45 calendar days after the beginning of a fiscal 
year, OMB shall conduct a sequestration to 
eliminate the excess outlay amount. 
‘‘(B) DEFINITIONS.— 
‘‘(i) For fiscal years 2012 through 
2017 and for purposes of this subsection, 
the term ‘excess outlay amount’ means the 
amount by which total Federal outlays 
(less net interest payments) for a fiscal 
year exceeds the outlay cap for that fiscal 
year. 
‘‘(ii) For fiscal year 2018 and in sub-
sequent fiscal years and for purposes of 
this subsection, the term ‘excess outlay 
amount’ means the amount by which total 
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Federal outlays for a fiscal year exceeds 
the outlay cap for that fiscal year. 
‘‘(2) SEQUESTRATION.— 
‘‘(A) On August 15 of each year, CBO 
shall issue a sequestration preview report as de-
scribed in section 254(c)(4). 
‘‘(B) On August 20 of each year, OMB 
shall issue a sequestration preview report as de-
scribed in section 254(c)(4). 
‘‘(C) On October 31 of each year, OMB 
shall issue its final sequestration report as de-
scribed in section 254(f)(3). It shall be accom-
panied by a Presidential order detailing uniform 
spending reductions equal to the excess outlay 
amount as defined in this section. 
‘‘(D) The reductions shall generally follow 
the process set forth in section 253 and 254, 
except as provided in this section. 
‘‘(3) CONGRESSIONAL ACTION.—If the August 
20 OMB report projects a sequestration, the Com-
mittees on Budget of the Senate and House of Rep-
resentatives may report a resolution directing their 
committees to change the existing law to achieve the 
spending reductions outlined in the August 20 re-
port necessary to meet the outlay limits. 
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‘‘(c) NO EXEMPT PROGRAMS.—Section 255 and sec-
tion 256 shall not apply to this section, except that pay-
ments for net interest (budget function 900) shall be ex-
empt from the spending reductions under sequestration. 
‘‘(d) LOOK BACK.—If, after November 15, a bill re-
sulting in outlays for the fiscal year in progress is enacted 
that causes excess outlays, the excess outlay amount for 
the next fiscal year shall be increased by the amount or 
amounts of that breach.’’. 
(b) CONFORMING AMENDMENTS TO BBEDCA.— 
(1) SEQUESTRATION PREVIEW REPORTS.—Sec-
tion 254(c)(4) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended to 
read as follows: 
‘‘(4) OUTLAY CAP SEQUESTRATION REPORTS.— 
The preview reports shall set forth for the budget 
year estimates for the following: 
‘‘(A)(i) For each of budget years 2012 
through 2017: the aggregate projected outlays 
(less net interest payment), less one percent. 
‘‘(ii) For budget year 2018 and each sub-
sequent budget year: the estimated gross do-
mestic product (GDP) for that budget year. 
‘‘(B) The amount of reductions required 
under section 253A. 
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‘‘(C) The sequestration percentage nec-
essary to achieve the required reduction under 
section 253A.’’. 
(2) FINAL SEQUESTRATION REPORTS.—Section 
254(f)(3) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended to read as 
follows: 
‘‘(3) 
OUTLAY
CAPS
SEQUESTRATION
RE-
PORTS.—The final reports shall contain all the infor-
mation required in the outlay cap sequestration pre-
view reports. In addition, these report shall contain, 
for the budget year, for each account to be seques-
tered, estimates of the baseline level of sequestrable 
budgetary resources and resulting outlays and the 
amount of budgetary sources to be sequestered and 
result in outlay reductions. The report shall also 
contain estimates of the effects on outlays on the se-
questration of each outyear for direct spending pro-
grams.’’. 
(3) REPEAL
OF
EXPIRATION
DATE.—Section 
275 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is repealed. 
(c) ENFORCEMENT.—Title III of the Congressional 
Budget Act of 1974 is amended by adding after section 
315 the following: 
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‘‘SEC. 316. ENFORCEMENT PROCEDURES. 
‘‘(a) OUTLAY CAPS.—It shall not be in order in the 
House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, or conference report that 
includes any provision that would cause the most recently 
reported, current outlay cap set forth in section 253A of 
the Balanced Budget and Emergency Deficit Control Act 
of 1985 to be breached. 
‘‘(b) WAIVER OR SUSPENSION.— 
‘‘(1) IN THE SENATE.—The provisions of this 
section may be waived or suspended in the Senate 
only by the affirmative vote of two-thirds of the 
Members, duly chosen and sworn. 
‘‘(2) IN THE HOUSE.—The provisions of this 
section may be waived or suspended in the House of 
Representatives only by a rule or order proposing 
only to waive such provisions by an affirmative vote 
of two-thirds of the Members, duly chosen and 
sworn. 
‘‘(c) POINT OF ORDER PROTECTION.—In the House, 
it shall not be in order to consider a rule or order that 
waives the application of paragraph (2) of subsection (b). 
‘‘(d) MOTION TO SUSPEND.—It shall not be in order 
for the Speaker to entertain a motion to suspend the appli-
cation of this section under clause 1 of rule XV.’’. 
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SEC. 4. CONFORMING AMENDMENTS. 
The table of contents set forth in— 
(1) section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended 
by inserting after the item relating to section 315 
the following new item: 
‘‘Sec. 316. Enforcement procedures.’’; 
and 
(2) section 250(a) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended 
by inserting after the item relating to section 253 
the following new item: 
‘‘Sec. 253A. Establishing outlay caps.’’. 
SEC. 5. EFFECTIVE DATE. 
This Act and the amendments made by it shall apply 
to fiscal year 2012 and subsequent fiscal years, including 
any reports and calculations required for implementation 
in fiscal year 2012. 
Æ 
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