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(8) Secretary Panetta and the professional mili-
tary leadership have also looked at the impact of se-
questration and reached similar conclusions. 
(9) Secretary Panetta stated, ‘‘If the maximum 
sequestration is triggered, the total cut will rise to 
about $1 trillion compared with the FY 2012 plan. 
The impacts of these cuts would be devastating for 
the Department * * * Facing such large reductions, 
we would have to reduce the size of the military 
sharply. Rough estimates suggest after ten years of 
these cuts, we would have the smallest ground force 
since 1940, the smallest number of ships since 1915, 
and the smallest Air Force in its history.’’ (Sec-
retary Panetta, Letter to Senator John McCain, No-
vember 14, 2011). 
(10) General Dempsey, Chairman of the Joint 
Chiefs of Staff, stated, ‘‘[S]equestration leaves me 
three places to go to find the additional money: op-
erations, maintenance, and training. That’s the defi-
nition of a hollow force.’’. 
(11) The individual branch service chiefs echoed 
General Dempsey: 
(A) ‘‘Cuts of this magnitude would be cat-
astrophic to the military * * * My assessment 
is that the nation would incur an unacceptable 
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level of strategic and operational risk.’’—Gen-
eral Ray T. Odierno, Chief Of Staff, United 
States Army. 
(B) ‘‘A severe and irreversible impact on 
the Navy’s future’’—Admiral Jonathan W. 
Greenert, Chief of Naval Operations. 
(C) ‘‘A Marine Corps below the end 
strength that’s necessary to support even one 
major contingency,’’—General James F. Amos, 
Commandant of the Marine Corps. 
(D) ‘‘Even the most thoroughly deliberated 
strategy may not be able to overcome dire con-
sequences,’’—General Norton A. Schwartz, 
Chief of Staff, United States Air Force (Testi-
mony of Service Chief before House Armed 
Services Committee, November 2, 2011). 
(12) According to an analysis by the House Ap-
propriations Committee, the sequester will also have 
a significant impact on non-defense discretionary 
programs, including the following: 
(A) Automatically reducing Head Start by 
$650 million, resulting in 75,000 fewer slots for 
children in the program. 
(B) Automatically reducing the National 
Institutes of Health (NIH) by $2.4 billion, an 
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amount equal to nearly half of total NIH 
spending on cancer this year. 
(C) A reduction of approximately 1,870 
Border Patrol Agents (a reduction of nearly 9 
percent of the total number of agents). 
(13) Beyond the negative impacts sequestration 
will have on defense readiness, it will also undermine 
the industrial base needed to equip our armed forces 
with the weapons and technology they need to com-
plete their mission. A study released by the National 
Association of Manufacturers suggests that 1.1 mil-
lion workers in the supply chain could be adversely 
affected, including 3.4 percent of workers in the 
aerospace industry, 3.3 percent of the workforce in 
the shipbuilding industry and 10 percent of the 
workers in the search and navigation equipment in-
dustry. 
SEC. 3. CONDITIONAL REPLACEMENT FOR FY 2013 SEQUES-
TER. 
(a) CONTINGENT EFFECTIVE DATE.—This section 
and the amendments made by it shall take effect upon 
the enactment of— 
(1) the Act contemplated in section 201 of H. 
Con. Res. 112 (112th Congress) that achieves at 
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least the deficit reduction called for in such section 
for such periods; or 
(2) similar legislation that achieves outlay re-
ductions within five years after the date of enact-
ment that equal or exceed the outlay reductions 
flowing from the budget authority reductions man-
dated by sections 251A(7)(A) and 251A(8) of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985, as in force immediately before the date 
of enactment of this Act, as it applies to direct 
spending in the defense function for fiscal year 2013 
combined with the outlay reductions flowing from 
the amendment to section 251A(7)(A)(i) of the Bal-
anced Budget and Emergency Deficit Control Act of 
1985 made by subsection (c) of this section. 
(b) REVISED
2013 DISCRETIONARY
SPENDING 
LIMIT.—Paragraph (2) of section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended to read as follows: 
‘‘(2) with respect to fiscal year 2013, for the 
discretionary category, $1,047,000,000,000 in new 
budget authority;’’. 
(c) DISCRETIONARY SAVINGS.—Section 251A(7)(A) 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows: 
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‘‘(A) FISCAL YEAR 2013.— 
‘‘(i) FISCAL
YEAR
2013
ADJUST-
MENT.—On January 2, 2013, the discre-
tionary category set forth in section 
251(c)(2) 
shall 
be 
decreased 
by 
$19,104,000,000 in budget authority. 
‘‘(ii) 
ENFORCEMENT
OF
DISCRE-
TIONARY
SPENDING
CAPS.—OMB shall 
issue a supplemental report consistent with 
the requirements set forth in section 
254(f)(2) for fiscal year 2013 using the 
procedures set forth in section 253(f) on 
April 15, 2013, to eliminate any discre-
tionary spending breach of the spending 
limit set forth in section 251(c)(2) as ad-
justed by clause (i), and the President 
shall issue an order to eliminate the 
breach, if any, identified in such report.’’. 
(d) ELIMINATION AND CONDITIONAL REPLACEMENT 
OF THE FISCAL YEAR 2013 SEQUESTRATION FOR DIRECT 
SPENDING.— 
(1) ELIMINATION.—Any sequestration order 
issued by the President under the Balanced Budget 
and Emergency Deficit Control Act of 1985 to carry 
out reductions to direct spending for the defense 
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function (050) for fiscal year 2013 pursuant to sec-
tion 251A of such Act shall have no force or effect. 
(2) CONDITIONAL REPLACEMENT.—To the ex-
tent that legislation enacted pursuant to section 
3(a)(2) achieves outlay reductions that exceed the 
outlay reductions flowing from the budget authority 
reductions required in section 251A(8) of the Bal-
anced Budget and Emergency Deficit Control Act of 
1985, as in force immediately before the date of en-
actment of this Act, the direct spending reductions 
for the nonsecurity category for fiscal year 2013 
otherwise required to be ordered pursuant to such 
section shall be reduced by that amount, and Con-
gress so designates for such purpose. 
SEC. 4. PRESIDENTIAL SUBMISSION. 
Not later than October 15, 2012, the President shall 
transmit to Congress a legislative proposal that meets the 
requirements of section 3(a)(2) of this Act. 
Passed the House of Representatives September 13, 
2012. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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