I 
109TH CONGRESS 
1ST SESSION H. R. 2860
To encourage Members of Congress and the executive branch to be honest 
with the public about true on-budget circumstances, to exclude the Social 
Security trust funds and the Medicare hospital insurance trust fund 
from the annual Federal budget baseline, to prohibit Social Security 
and Medicare hospital insurance trust funds surpluses to be used as 
offsets for tax cuts or spending increases, and to exclude the Social 
Security trust funds and the Medicare hospital insurance trust fund 
from official budget surplus/deficit pronouncements. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 9, 2005
Mr. SMITH of Washington (for himself and Mr. INSLEE) introduced the fol-
lowing bill; which was referred to the Committee on the Budget, and in 
addition to the Committee on Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To encourage Members of Congress and the executive branch 
to be honest with the public about true on-budget cir-
cumstances, to exclude the Social Security trust funds 
and the Medicare hospital insurance trust fund from 
the annual Federal budget baseline, to prohibit Social 
Security and Medicare hospital insurance trust funds 
surpluses to be used as offsets for tax cuts or spending 
increases, and to exclude the Social Security trust funds 
and the Medicare hospital insurance trust fund from 
official budget surplus/deficit pronouncements.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Honesty in Budgeting 
Act of 2005’’. 
SEC. 2. SENSE OF HOUSE TO ENCOURAGE HONESTY FOR 
MEMBERS OF CONGRESS AND EXECUTIVE 
BRANCH OFFICIALS. 
It is the sense of the House of Representatives that 
Members of Congress, executive branch officials, and their 
respective representatives should use on-budget numbers 
when making public statements regarding the Federal 
budget. 
SEC. 3. OFF-BUDGET STATUS OF OASDI AND HI TRUST 
FUNDS. 
Notwithstanding any other provision of law, the re-
ceipts and disbursements of the Federal Old-Age and Sur-
vivors Insurance Trust Fund, the Federal Disability In-
surance Trust Fund, and the Federal Hospital Insurance 
Trust Fund shall not be counted as new budget authority, 
outlays, receipts, or deficit or surplus for purposes of—
(1) the budget of the United States Govern-
ment as submitted by the President, 
(2) the congressional budget, or
(3) the Balanced Budget and Emergency Def-
icit Control Act of 1985. 
SEC. 4. REMOVING SOCIAL SECURITY AND MEDICARE 
FROM 
BUDGET 
SURPLUS/DEFICIT 
PRO-
NOUNCEMENTS. 
(a) REMOVING SOCIAL SECURITY AND MEDICARE 
FROM BUDGET SURPLUS/DEFICIT PRONOUNCEMENTS.—
Title III of the Congressional Budget Act of 1974 is 
amended by adding at the end the following section: 
‘‘REMOVING SOCIAL SECURITY AND MEDICARE FROM 
BUDGET SURPLUS/DEFICIT PRONOUNCEMENTS 
‘‘Surplus or Deficit Totals 
‘‘SEC. 316. (a) Any official statement issued by the 
Office of Management and Budget or by the Congressional 
Budget Office of surplus or deficit totals of the budget 
of the United States Government as submitted by the 
President or of the surplus or deficit totals of the congres-
sional budget, and any description of, or reference to, such 
totals in any official publication or material issued by ei-
ther of such Offices, shall exclude the receipts and dis-
bursements totals of the old-age survivors, and disability 
insurance program under title 2 of the Social Security Act 
and of the Federal Hospital Insurance Trust Fund under 
part A of title 18 of such Act. The Office of Management 
and Budget and the Congressional Budget Office shall 
issue separate reports on the outlays and revenues of the
Social Security trust funds and of the Federal Hospital 
Insurance Trust Fund. 
‘‘Presentation of Budgetary Aggregates 
‘‘(b) For purposes of chapter 11 of title 31, United 
States Code, or this Act, tables and other displays of 
budgetary aggregates for the United States Government 
of the Director of the Office of Management and Budget 
or the Director of the Congressional Budget Office shall 
not include receipts or disbursements referred to in sub-
section (a).’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended by 
adding after the item relating to section 315 the following 
new item:
‘‘316. Removing Social Security and Medicare from budget surplus/deficit pro-
nouncements.’’.
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