relating to the power of the Congress to tax and 
spend. 
(2) Should an amendment to the United States 
Constitution be adopted and ratified by the States 
setting a lower limitation on outlays than provided 
in this Act, it is appropriate for Congress to con-
sider legislation immediately modifying maximum 
outlay amounts in this Act. 
(3) Total Federal outlays have averaged 20.6 
percent of gross domestic product over the past 40 
years. 
(4) Total Federal outlays in fiscal year 2010 
were 23.8 percent of gross domestic product. 
(5) Total Federal outlays in fiscal year 2020 
are projected to be 25.9 percent of gross domestic 
product according to the Congressional Budget Of-
fice’s Alternative Fiscal Scenario. 
(6) It is appropriate and urgently necessary to 
put total Federal outlays under a limitation as a 
percentage of gross domestic product to ensure 
spending is constrained sufficiently to reduce the 
Federal debt to much lower, sustainable levels. 
SEC. 3. OUTLAYS EXCEEDING THE GDP OUTLAY LIMIT. 
(a) DEFINITIONS.—Section 250(c)(4) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985 
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is amended by striking paragraph (4), redesignating the 
succeeding paragraphs accordingly, and adding the fol-
lowing paragraphs: 
‘‘(19) The term ‘GDP’, for any fiscal year, 
means the gross domestic product during such fiscal 
year consistent with Department of Commerce defi-
nitions. 
‘‘(20)(A) The term ‘emergency requirement’ 
means any provision that provides new budget au-
thority and resulting outlays for a situation that 
poses a threat to life, property, or national security 
and is— 
‘‘(i) sudden, quickly coming into being, and 
not building up over time; 
‘‘(ii) an urgent, pressing, and compelling 
need requiring immediate action; 
‘‘(iii) unforeseen, unpredictable, and unan-
ticipated; and 
‘‘(iv) not permanent, temporary in nature. 
‘‘(B) An emergency that is part of an aggregate 
level of anticipated emergencies, particularly when 
normally estimated in advance, is not unforeseen. 
‘‘(21) The term ‘target fiscal year’ means the 
fiscal year in which a GDP outlay limit is in effect 
under section 253A.’’. 
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(b) CAPS.—The Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by inserting after 
section 253 the following: 
‘‘SEC. 253A. ENFORCING GDP OUTLAY LIMITS. 
‘‘(a) ENFORCING GDP OUTLAY LIMITS.—In this sec-
tion, the term ‘GDP outlay limit’ means an amount, as 
estimated by OMB, equal to— 
‘‘(1) the average GDP for the first 5 of the 6 
fiscal years preceding the target fiscal year; multi-
plied by 
‘‘(2) 23 percent for fiscal year 2012; 22 percent 
for fiscal year 2013; 21 percent for fiscal year 2014; 
19.5 percent for fiscal year 2015; and 18 percent for 
fiscal year 2016 and each subsequent fiscal year. 
‘‘(b) GDP OUTLAY LIMIT AND OUTLAYS.— 
‘‘(1) DETERMINING THE GDP OUTLAY LIMIT.— 
The Office of Management and Budget shall esti-
mate the GDP outlay limit for the target fiscal year 
at the outset of the previous fiscal year, on April 30, 
on August 20, and 15 days after the conclusion of 
the fiscal year. CBO shall provide advisory reports 
calculating the GDP outlay limit at identical times. 
‘‘(2) TOTAL FEDERAL OUTLAYS.—In this sec-
tion, total Federal outlays shall include all on-budget 
and off-budget outlays. 
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‘‘(c) 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) DEFINITION.—For purposes of this 
subsection, the term ‘excess outlay amount’ 
means the amount by which total Federal out-
lays for a fiscal year exceed the GDP outlay 
limit as adjusted pursuant to paragraph (2). 
‘‘(2) PREVIEW REPORT.—CBO shall submit an 
advisory sequestration preview report as described in 
section 254(c)(4) on August 10 of each year. OMB 
shall produce a sequestration preview report on Au-
gust 20 as described in section 254(c)(4). Fifteen 
days after the fiscal year begins, OMB shall issue an 
updated sequestration report as described in section 
254(e). Thirty days later, the OMB should issue its 
final sequestration report as described in section 
254(f)(3). It shall be accompanied by a Presidential 
order detailing the uniform spending reductions. The 
reductions should generally follow the process set 
forth in section 253 and 254, except as provided in 
this section. 
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‘‘(3) CONGRESSIONAL ACTION.—If the August 
20 OMB report projects a sequestration, the Senate 
and House Budget Committees may report a resolu-
tion directing their committees to change the exist-
ing law to achieve the goals outlined in the August 
20 report. 
‘‘(4) REDUCING NONEXEMPT BUDGETARY RE-
SOURCES BY A PROPORTIONAL PERCENTAGE.— 
‘‘(A) CALCULATION.—OMB shall calculate 
the increase in outlays attributable to each of 
the 3 categories described in subparagraph (B) 
such that the outlay savings resulting from se-
questration, as calculated under this subsection, 
eliminate excess outlays. 
‘‘(B) CATEGORIES.—The 3 categories are 
as follows: 
‘‘(i) Direct spending (social security, 
medicare, and other such programs). 
‘‘(ii) Discretionary security spending. 
‘‘(iii) 
Discretionary 
non-security 
spending. 
‘‘(C) REDUCTIONS
PROPORTIONAL.—The 
percentage reductions for each category de-
scribed in subparagraph (B) shall be in propor-
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tion to the growth in outlays in such category 
from the previous fiscal year. 
‘‘(D) UNIFORM REDUCTION WITHIN CAT-
EGORIES.—To achieve the percent reduction 
within a category under subparagraph (C), a 
uniform reduction will occur across all pro-
grams within that category to achieve the per-
cent reduction required for that category. 
‘‘(E) PRO
RATA
BASIS.—If legislation 
funding the Government does not reflect fund-
ing amounts for the entire fiscal year, seques-
tration required by this section shall be done on 
a pro rata basis. If legislation funding the Gov-
ernment for the remainder of a fiscal year is 
enacted, the total sequestration required in a 
fiscal year shall total the necessary level which 
may be undertaken in a single step or in a se-
quence of steps. 
‘‘(d) NO EXEMPT PROGRAMS.—Section 255 shall not 
apply to this section, except that payments for net interest 
(budget function 900) shall be exempt. 
‘‘(e) 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 outlays for the next 
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fiscal year shall be increased by the amount or amounts 
of that breach.’’. 
(c) BBEDCA.—Notwithstanding section 275 of the 
Balanced Budget and Emergency Deficit Control Act of 
1985, the relevant provisions of such Act shall apply to 
the extent necessary to enforce this Act, including amend-
ments made by this Act. 
(d) EFFECTIVE DATE.—This section shall apply be-
ginning in fiscal year 2013 and beyond, including any re-
ports and calculations required for implementation in fis-
cal year 2013. 
SEC. 4. ENFORCEMENT PROCEDURES UNDER THE CON-
GRESSIONAL BUDGET ACT OF 1974. 
(a) ENFORCEMENT.—Title III of the Congressional 
Budget Act of 1974 is amended by adding after section 
315 the following: 
‘‘SEC. 316. ENFORCEMENT PROCEDURES. 
‘‘(a) GDP OUTLAY LIMITS.—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 re-
cently reported, current GDP outlay limits set forth in sec-
tion 253A of the Balanced Budget and Emergency Deficit 
Control Act of 1985 to be exceeded. 
‘‘(b) WAIVER OR SUSPENSION.— 
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‘‘(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, present and voting. 
‘‘(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, present and voting. 
‘‘(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.’’. 
(b) TABLE OF CONTENTS.—The table of contents in 
section 1(b) of the Congressional Budget and Impound-
ment Control Act of 1974 is amended by inserting after 
the item relating to section 315 the following: 
‘‘Sec. 316. Enforcement procedures.’’. 
Æ 
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