‘‘(C) The term ‘uniformed services’ shall 
have the meaning given that term in section 
101(3) of title 37, United States Code. 
‘‘(k) CHILD SUPPORT ENFORCEMENT PROGRAM.— 
Any sequestration order shall accomplish the full amount 
of any required reduction in expenditures under sections 
455 and 458 of the Social Security Act by reducing the 
Federal matching rate for State administrative costs 
under such program, as specified (for the fiscal year in-
volved) in section 455(a) of such Act, to the extent nec-
essary to reduce such expenditures by that amount. 
‘‘(l) EXTENDED UNEMPLOYMENT COMPENSATION.— 
(1) A State may reduce each weekly benefit payment made 
under the Federal-State Extended Unemployment Com-
pensation Act of 1970 for any week of unemployment oc-
curring during any period with respect to which payments 
are reduced under an order issued under this title by a 
percentage not to exceed the percentage by which the Fed-
eral payment to the State under section 204 of such Act 
is to be reduced for such week as a result of such order. 
‘‘(2) A reduction by a State in accordance with sub-
paragraph (A) shall not be considered as a failure to fulfill 
the requirements of section 3304(a)(11) of the Internal 
Revenue Code of 1954. 
‘‘(m) COMMODITY CREDIT CORPORATION.— 
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‘‘(1) POWERS AND AUTHORITIES OF THE COM-
MODITY CREDIT CORPORATION.—This title shall not 
restrict the Commodity Credit Corporation in the 
discharge of its authority and responsibility as a cor-
poration to buy and sell commodities in world trade, 
to use the proceeds as a revolving fund to meet 
other obligations and otherwise operate as a corpora-
tion, the purpose for which it was created. 
‘‘(2) REDUCTION IN PAYMENTS MADE UNDER 
CONTRACTS.—(A) Payments and loan eligibility 
under any contract entered into with a person by the 
Commodity Credit Corporation prior to the time any 
sequestration order has been issued shall not be re-
duced by an order subsequently issued. Subject to 
subparagraph (B), after any sequestration order is 
issued for a fiscal year, any cash payments made by 
the Commodity Credit Corporation— 
‘‘(i) under the terms of any one-year con-
tract entered into in or after such fiscal year 
and after the issuance of the order; and 
‘‘(ii) out of an entitlement account, 
to any person (including any producer, lender, or 
guarantee entity) shall be subject to reduction under 
the order. 
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‘‘(B) Each contract entered into with producers 
or producer cooperatives with respect to a particular 
crop of a commodity and subject to reduction under 
subparagraph (A) shall be reduced in accordance 
with the same terms and conditions. If some, but 
not all, contracts applicable to a crop of a com-
modity have been entered into prior to the issuance 
of any sequestration order, the order shall provide 
that the necessary reduction in payments under con-
tracts applicable to the commodity be uniformly ap-
plied to all contracts for succeeding crops of the 
commodity, under the authority provided in para-
graph (3). 
‘‘(3) DELAYED REDUCTION IN OUTLAYS PER-
MISSIBLE.—Notwithstanding any other provision of 
this title, if any sequestration order is issued with 
respect to a fiscal year, any reduction under the 
order applicable to contracts described in paragraph 
(2) may provide for reductions in outlays for the ac-
count involved to occur in the fiscal years following 
the fiscal year to which the order applies. 
‘‘(4) UNIFORM PERCENTAGE RATE OF REDUC-
TION AND OTHER LIMITATIONS.—All reductions de-
scribed in paragraph (2) that are required to be 
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made in connection with any sequestration order 
with respect to a fiscal year— 
‘‘(A) shall be made so as to ensure that 
outlays for each program, project, activity, or 
account involved are reduced by a percentage 
rate that is uniform for all such programs, 
projects, activities, and accounts, and may not 
be made so as to achieve a percentage rate of 
reduction in any such item exceeding the rate 
specified in the order; and 
‘‘(B) with respect to commodity price sup-
port and income protection programs, shall be 
made in such manner and under such proce-
dures as will attempt to ensure that— 
‘‘(i) uncertainty as to the scope of 
benefits under any such program is mini-
mized; 
‘‘(ii) any instability in market prices 
for agricultural commodities resulting from 
the reduction is minimized; and 
‘‘(iii) normal production and mar-
keting relationships among agricultural 
commodities (including both contract and 
non-contract commodities) are not dis-
torted. 
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In meeting the criterion set out in clause (iii) 
of subparagraph (B) of the preceding sentence, 
the President shall take into consideration that 
reductions under an order may apply to pro-
grams for two or more agricultural commodities 
that use the same type of production or mar-
keting resources or that are alternative com-
modities among which a producer could choose 
in making annual production decisions. 
‘‘(5) CERTAIN
AUTHORITY
NOT
TO
BE
LIM-
ITED.—Nothing in this title shall limit or reduce in 
any way any appropriation that provides the Com-
modity Credit Corporation with funds to cover the 
Corporation’s net realized losses. 
‘‘(n) POSTAL SERVICE FUND.—Notwithstanding any 
other provision of law, any sequestration of the Postal 
Service Fund shall be accomplished by a payment from 
that Fund to the General Fund of the Treasury, and the 
Postmaster General of the United States shall make the 
full amount of that payment during the fiscal year to 
which the presidential sequestration order applies. 
‘‘(o) EFFECTS OF SEQUESTRATION.—The effects of 
sequestration shall be as follows: 
‘‘(1) Budgetary resources sequestered from any 
account other than an entitlement trust, special, or 
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revolving fund account shall revert to the Treasury 
and be permanently canceled. 
‘‘(2) Except as otherwise provided, the same 
percentage sequestration shall apply to all programs, 
projects, and activities within a budget account (with 
programs, projects, and activities as delineated in 
the appropriation Act or accompanying report for 
the relevant fiscal year covering that account, or for 
accounts not included in appropriation Acts, as de-
lineated in the most recently submitted President’s 
budget). 
‘‘(3) Administrative regulations or similar ac-
tions implementing a sequestration shall be made 
within 120 days of the sequestration order. To the 
extent that formula allocations differ at different 
levels of budgetary resources within an account, pro-
gram, project, or activity, the sequestration shall be 
interpreted as producing a lower total appropriation, 
with that lower appropriation being obligated as 
though it had been the pre-sequestration appropria-
tion and no sequestration had occurred. 
‘‘(4) Except as otherwise provided, obligations 
in sequestered direct spending accounts shall be re-
duced in the fiscal year in which a sequestration oc-
curs and in all succeeding fiscal years. 
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‘‘(5) If an automatic spending increase is se-
questered, the increase (in the applicable index) that 
was disregarded as a result of that sequestration 
shall not be taken into account in any subsequent 
fiscal year. 
‘‘(6) Except as otherwise provided, sequestra-
tion in accounts for which obligations are indefinite 
shall be taken in a manner to ensure that obliga-
tions in the fiscal year of a sequestration and suc-
ceeding fiscal years are reduced, from the level that 
would actually have occurred, by the applicable se-
questration percentage.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents set forth in 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by 
amending the item relating to section 256 to read as fol-
lows: 
‘‘Sec. 256. Exceptions, limitations, and special rules.’’. 
SEC. 204. POINT OF ORDER. 
(a) ENTITLEMENT POINT OF ORDER.—Section 312 
of the Congressional Budget Act of 1974 is amended by 
adding at the end the following new subsection: 
‘‘(g) ENTITLEMENT POINT OF ORDER.—It shall not 
be in order in the House of Representatives or the Senate 
to consider any bill, joint resolution, amendment, or con-
ference report that— 
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‘‘(1) increases aggregate level of direct spending 
for any ensuing fiscal year; or 
‘‘(2) includes any provision that has the effect 
of modifying the application of section 252A of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985 to any entitlement program subject to 
sequestration or exempt from sequestration under 
such Act.’’. 
SEC. 205. TECHNICAL AND CONFORMING AMENDMENTS. 
The Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended as follows: 
(1) Section 251(a)(1) is amended by inserting 
‘‘, section 252A,’’ after ‘‘section 252’’. 
(2) Section 254(c)(4)(B) is amended by insert-
ing ‘‘or section 252A’’ after ‘‘section 252’’. 
(3) Section 254(c) is amended by redesignating 
paragraph (5) as paragraph (6) and by inserting 
after paragraph (4) the following new paragraph: 
‘‘(5) DIRECT SPENDING CONTROL SEQUESTRA-
TION REPORTS.—The preview reports shall set forth, 
for the current year and the budget year, estimates 
for each of the following: 
‘‘(A) The total level of direct spending for 
all programs, projects, and activities (excluding 
social security). 
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‘‘(B) The sequestration percentage or (if 
the required sequestration percentage is greater 
than the maximum allowable percentage) per-
centages necessary to comply with section 
252A.’’. 
(4) Section 254(f) is amended by redesignating 
paragraphs (4) and (5) as paragraphs (5) and (6) 
and by inserting after paragraph (3) the following 
new paragraph: 
‘‘(4) DIRECT SPENDING CONTROL SEQUESTRA-
TION REPORTS.—The final reports shall contain all 
the information required in the direct spending con-
trol sequestration preview reports. In addition, these 
reports shall contain, for the budget year, for each 
account to be sequestered, estimates of the baseline 
level of sequesterable budgetary resources and re-
sulting outlays and the amount of budgetary re-
sources to be sequestered and resulting outlay reduc-
tions. The reports shall also contain estimates of the 
effects on outlays of the sequestration in each out-
year for direct spending programs.’’. 
(5) Section 258C(a)(1) is amended by inserting 
‘‘, 252A,’’ after ‘‘section 252’’. 
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(6) Section 275(b) is amended by striking 
‘‘2002’’ and inserting ‘‘2018’’ and by striking the 
second sentence thereof. 
SEC. 206. ESTABLISHMENT OF BUDGET PROTECTION MAN-
DATORY ACCOUNT. 
Title III of the Congressional Budget Act of 1974 
(as amended by section 521) is further amended by adding 
at the end the following new section: 
‘‘BUDGET PROTECTION MANDATORY ACCOUNT 
‘‘SEC. 320. (a) ESTABLISHMENT OF ACCOUNT.—The 
chairman of the Committee on the Budget of the House 
of Representatives and of the Senate shall each maintain 
an account to be known as the ‘Budget Protection Manda-
tory Account’. The Account shall be divided into entries 
corresponding to the House or Senate committees, as ap-
plicable, that received allocations under section 302(a) in 
the most recently adopted concurrent resolution on the 
budget, except that it shall not include the Committee on 
Appropriations of that House and each entry shall consist 
of the ‘First Year Budget Protection Balance’ and the 
‘Five Year Budget Protection Balance’. 
‘‘(b) COMPONENTS.—Each entry shall consist only of 
amounts credited to it under subsection (c). No entry of 
a negative amount shall be made. 
‘‘(c) CREDITING OF AMOUNTS TO ACCOUNT.—(1) 
Whenever a Member or Senator, as the case may be, offers 
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100 
an amendment to a bill that reduces the amount of man-
datory budget authority provided either under current law 
or proposed to be provided by the bill under consideration, 
that Member or Senator may state the portion of such 
reduction achieved in the first year covered by the most 
recently adopted concurrent resolution on the budget and 
in addition the portion of such reduction achieved in the 
first five years covered by the most recently adopted con-
current resolution on the budget that shall be— 
‘‘(A) credited to the First Year Budget Protec-
tion Balance and the Five Year Budget Protection 
Balance in the House or Senate, as applicable; 
‘‘(B) used to offset an increase in other new 
budget authority; 
‘‘(C) allowed to remain within the applicable 
section 302(a) allocation; or 
‘‘(D) used to offset a decrease in receipts. 
If no such statement is made, the amount of reduction 
in new budget authority resulting from the amendment 
shall be credited to the First Year Budget Protection Bal-
ance and the Five Year Budget Protection Balance, as ap-
plicable, if the amendment is agreed to. 
‘‘(2) Except as provided by paragraph (3), the chair-
man of the Committee on the Budget of the House or Sen-
ate, as applicable, shall, upon the engrossment of any bill, 
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