(1) IN GENERAL.—The Director of the Office of 
Management and Budget shall establish a spending 
limitation (in this Act referred to as a ‘‘spending 
safeguard limitation’’) with respect to any direct 
spending program not later than 90 days after any 
such program is enacted or reauthorized (as the case 
may be). 
(2) DETERMINATION OF SPENDING SAFEGUARD 
LIMITATION.—The spending safeguard limitation es-
tablished under paragraph (1) for a direct spending 
program shall be equal to— 
(A) with respect to any such program 
within budget function 050 (Defense), 550 
(Health), 600 (Income Security), or 700 (Vet-
erans Benefits and Services), 120 percent of 
the cost of the program; and 
(B) with respect to any such program 
within any other budget function, 110 percent 
of the cost of the program. 
(3) DETERMINATION OF COST OF PROGRAM.— 
For purposes of paragraphs (2) (A) and (B), the 
cost of the program shall be the estimated six-year 
cost of the program, as determined by the Director 
using the scorecards or estimate (as the case may 
be) applicable to the program under section 4 of the 
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Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 
933). 
(b) SPENDING
SAFEGUARD
LIMITATION
SCORE-
CARDS.— 
(1) IN GENERAL.—The Director shall maintain 
and make publicly available a spending safeguard 
limitation scorecard displaying the spending level for 
any direct spending program that is subject to a 
spending safeguard limitation pursuant to this Act. 
(2) MONTHLY COSTS.—Not later than 7 days 
after the end of each month beginning after the first 
full month in which such a direct spending program 
is operational, the Secretary of the Treasury shall 
transmit to the Director a report listing the total 
amount of spending for any direct spending program 
listed on the scorecard. 
(3) OMB BIANNUAL REPORT.—After the end of 
any six-month period, the Director shall submit a re-
port to the Committees on the Budget of the House 
of Representatives and the Senate containing the 
total level of spending for any such direct spending 
program and the relation between such level and the 
spending safeguard limitation applicable to such pro-
gram. 
(c) PRESIDENT BUDGET SUBMISSIONS.— 
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(1) ANNUAL.—Section 1105(a) of title 31, 
United States Code, is amended by adding at the 
end the following: 
‘‘(40) a report on the total level of spending for 
any direct spending program subject to a spending 
safeguard limitation pursuant to the Spending Safe-
guard Act, and the relation between such level and 
the spending safeguard limitation applicable to such 
program.’’. 
(2) MID-SESSION.—Section 1106(a)(1)(C) of 
such 
title 
is 
amended 
by 
striking 
‘‘section 
1105(a)(8) and (9)(B) and (C)’’ and inserting ‘‘sec-
tion 1105(a) (8), (9) (B) and (C), and (40)’’. 
(d) PROCEDURES IN CASE OF BREACH.— 
(1) SPENDING LIMITATION BREACH REPORT.— 
If, during any of the six years used to determine the 
cost of a direct spending program pursuant to sub-
section (a)(3), the Director determines, using the re-
ports submitted under subsection (b)(2), that a di-
rect spending program listed on the scorecard estab-
lished under subsection (b) will reach the applicable 
spending safeguard limitation within six months, the 
Director shall transmit, not later than 15 days after 
the date of such determination, a report to the Com-
mittees on the Budget of the House of Representa-
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tives and the Senate and the committees that have 
jurisdiction over the program. 
(2) OBLIGATION LIMITATION.—If, during any 
of such six years, the Director determines using the 
reports submitted under subsection (b)(2) that such 
a direct spending program has reached the applica-
ble spending safeguard limitation— 
(A) effective 30 days after such determina-
tion, no funds may be obligated to carry out 
such program; and 
(B) on the date of such determination, the 
Director shall submit a report to the Commit-
tees on the Budget of the House of Representa-
tives and the Senate and the committees that 
have jurisdiction over the program that such an 
obligation limitation has been imposed. 
(e) AGENCY PROCEDURES.—Any Federal agency im-
plementing a direct spending program listed on the score-
card established under subsection (b) shall ensure that any 
contract, offer of benefits, or other material provided to 
the program participants includes information specifying 
that the program is subject to a spending safeguard limi-
tation that may impact future availability of funds to pay 
benefits. 
(f) DEFINITIONS.—In this Act— 
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(1) the term ‘‘Director’’ means the Director of 
the Office of Management and Budget; 
(2) the term ‘‘direct spending’’ has the meaning 
given such term in section 250(c)(8) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 900(c)(8)); and 
(3) the term ‘‘direct spending program’’— 
(A) means any Federal program funded by 
direct spending that— 
(i) is enacted or reauthorized after the 
date of enactment of this Act; and 
(ii) does not have, in statute, a spe-
cific level (expressed as a dollar amount) of 
authorization of appropriations; and 
(B) does not include Medicare (budget 
function 570) or Social Security (budget func-
tion 650). 
(g) PROHIBITION
ON
NEW
AUTHORIZATION
OF 
FUNDING.—No additional funds are authorized to be ap-
propriated to carry out this Act. 
Æ 
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