‘‘(B) SPECIAL
RULE
FOR
FIRST
YEAR 
AFTER PRIMARY BALANCE.— 
‘‘(i) IN GENERAL.—For the first fiscal 
year that begins after the date of a deter-
mination that, for a fiscal year beginning 
after the date of enactment of this part, 
revenue exceeded primary budget author-
ity, the term ‘primary balance factor’ 
means 0.0 percentage point. 
‘‘(ii) SUBSEQUENT
ADJUSTMENT.— 
After the first fiscal year described in 
clause (i), the primary balance factor shall 
be adjusted in accordance with subpara-
graph (A)(ii). 
‘‘(C) LIMIT OF ZERO.—The primary bal-
ance factor for a fiscal year may not be less 
than 0.0 percentage point. 
‘‘(2) PRIMARY BUDGET AUTHORITY.—The term 
‘primary budget authority’ means all budget author-
ity except for net interest on the debt. 
‘‘(3) SPENDING CEILING.—The term ‘spending 
ceiling’, with respect to a fiscal year, means the 
maximum amount of primary budget authority for 
the fiscal year, as determined under section 442. 
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‘‘(4) SPENDING GROWTH FACTOR.—The term 
‘spending growth factor’, with respect to a fiscal 
year, means the difference obtained by subtracting— 
‘‘(A) the primary balance factor for the fis-
cal year; from 
‘‘(B) 
the 
average 
annual 
percentage 
growth in the gross domestic product of the 
United States during the 5-fiscal-year period 
before the beginning of the fiscal year before 
such fiscal year. 
‘‘SEC. 442. ESTABLISHMENT OF A SPENDING CEILING. 
‘‘(a) IN GENERAL.—The maximum amount of pri-
mary budget authority for a fiscal year shall be the 
amount of primary budget authority for the previous fiscal 
year as— 
‘‘(1) increased by the spending growth factor; 
and 
‘‘(2) modified by any adjustments under section 
444 or 445. 
‘‘(b) EXCLUSION
OF ADJUSTMENTS FROM BASE-
LINE.—In determining the maximum amount of primary 
budget authority for a fiscal year, the amount of primary 
budget authority for the previous fiscal year shall not in-
clude any adjustment under paragraph (1) or (3) of sec-
tion 444 or under section 445(c). 
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‘‘(c) DETERMINATION.— 
‘‘(1) FOR
CONGRESSIONAL
PURPOSES.—The 
Director of the Congressional Budget Office shall— 
‘‘(A) include in each report under section 
202(e)(1) and revision of such a report an esti-
mate of the amount of the spending ceiling (in-
cluding factors necessary to produce the esti-
mate) and any adjustments under section 444 
for the fiscal year commencing on October 1 of 
the year during which the Director submits the 
report; and 
‘‘(B) provide to the Committee on the 
Budget of the Senate and the Committee on the 
Budget of the House of Representatives up-
dates to the estimate of the spending ceiling 
and adjustments, as appropriate. 
‘‘(2) FOR
EXECUTIVE
BRANCH
PURPOSES.— 
The President shall— 
‘‘(A) include in each budget of the Presi-
dent submitted under section 1105 of title 31, 
United States Code, an estimate by the Office 
of Management and Budget of the amount of 
the spending ceiling and any adjustments under 
section 444 for the fiscal year commencing on 
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October 1 of the year during which the Presi-
dent submits the budget; and 
‘‘(B) obtain from the Office of Manage-
ment and Budget updates to the estimate of the 
spending ceiling and adjustments, as appro-
priate. 
‘‘SEC. 443. USE OF CEILING. 
‘‘(a) BY CONGRESS.—When considering legislation, 
the Senate and the House of Representatives shall adhere 
to the spending ceiling, as determined by the Director of 
the Congressional Budget Office under section 442(c)(1) 
(including any adjustments under section 444 or 445(c)). 
‘‘(b) BY EXECUTIVE BRANCH.—When considering 
proposals with fiscal implications, the President shall ad-
here to the spending ceiling, as determined by the Director 
of the Office of Management and Budget under section 
442(c)(2) (including any adjustments under sections 444 
or 445(c)). 
‘‘SEC. 444. ADJUSTING THE SPENDING CEILING. 
‘‘When adopting a concurrent resolution on the budg-
et (including a concurrent resolution on the budget de-
scribed in section 304), Congress may adjust the spending 
ceiling as determined under section 442(c)(1), and when 
enacting a supplemental appropriations Act, Congress 
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may adjust the spending ceiling as determined under sec-
tion 442(c)(2), commensurate with— 
‘‘(1) appropriations for an emergency, as de-
fined in section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 
900(c)); 
‘‘(2) a revision in the estimate of the gross do-
mestic product of the United States for any year to 
which section 441(4)(B) applies; 
‘‘(3) cyclical variations due to the difference be-
tween the actual and potential amount of the gross 
domestic product of the United States; 
‘‘(4) timing shifts of expenditures or revenues 
due; or 
‘‘(5) enacted laws that result in a change in 
revenue. 
‘‘SEC. 445. EMERGENCY ACCOUNT ADJUSTMENTS. 
‘‘(a) ESTABLISHMENT OF EMERGENCY ACCOUNT.— 
The Director of the Congressional Budget Office and the 
Director of the Office of Management and Budget shall 
each maintain an emergency account. 
‘‘(b) COMPUTATION.— 
‘‘(1) IN GENERAL.—The amount of the emer-
gency account shall be— 
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‘‘(A) increased by the amount of the ad-
justment made under section 444(1); and 
‘‘(B) decreased by the difference obtained 
by subtracting the amount of primary budget 
authority provided for a fiscal year from the ad-
justed spending ceiling (excluding any adjust-
ment under section 444(1), and including the 
effect of adjustments under section 445(c)) for 
that fiscal year. 
‘‘(2) LIMIT
OF
ZERO.—The amount of the 
emergency account may not be less than $0. 
‘‘(c) ADJUSTMENT.— 
‘‘(1) IN GENERAL.—If the amount of the emer-
gency account on the last day of a fiscal year has 
increased, as compared to the last day of the fiscal 
year before such fiscal year, the amount of the 
spending ceiling for the second fiscal year after such 
fiscal year and each of the ensuing 5 fiscal years 
shall be reduced by the amount equal to one-sixth of 
the amount of the increase in the emergency ac-
count. 
‘‘(2) MODIFICATION OF ADJUSTMENT.— 
‘‘(A) FOR
CONGRESSIONAL
PURPOSES.— 
When adopting a concurrent resolution on the 
budget (including a concurrent resolution on 
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