the section 8103 of the Transportation Equity 
Act: A Legacy for Users and, using current es-
timates, calculate the outlay change resulting 
from the change in obligations for the budget 
year and the first outyear and the outlays flow-
ing therefrom through subsequent fiscal years. 
After making the calculations under the pre-
ceding sentence, OMB shall adjust the amount 
of obligations set forth in that section for the 
budget year and the first outyear by adding 
one-half of the sum of the amount calculated 
under items (aa) and (bb) to each such year. 
‘‘(II) The estimated level of highway re-
ceipts for the purposes of this clause are—
‘‘(aa) 
for 
fiscal 
year 
2004, 
$30,572,000,000; 
‘‘(bb) 
for 
fiscal 
year 
2005, 
$34,260,000,000; 
‘‘(cc) 
for 
fiscal 
year 
2006, 
$35,586,000,000; 
‘‘(dd) 
for 
fiscal 
year 
2007, 
$36,570,000,000; 
‘‘(ee) 
for 
fiscal 
year 
2008, 
$37,603,000,000; and
‘‘(ff) 
for 
fiscal 
year 
2009, 
$38,651,000,000. 
‘‘(III) In this clause, the term ‘highway re-
ceipts’ means the governmental receipts cred-
ited to the highway account of the Highway 
Trust Fund. 
‘‘(C) In addition to the adjustment required by 
subparagraph (B), when the President submits the 
budget under section 1105 of title 31, United States 
Code, for fiscal year 2006, 2007, 2008, or 2009, 
OMB shall calculate and the budget shall include for 
the budget year and each outyear an adjustment to 
the limits on outlays for the highway category and 
the mass transit category equal to—
‘‘(i) the outlays for the applicable category 
calculated assuming obligation levels consistent 
with the estimates prepared pursuant to sub-
paragraph (D), as adjusted, using current tech-
nical assumptions; minus 
‘‘(ii) the outlays for the applicable category 
set forth in the subparagraph (D) estimates, as 
adjusted. 
‘‘(D)(i) When OMB and CBO submit their final 
sequester report for fiscal year 2004, that report 
shall include an estimate of the outlays for each of
the categories that would result in fiscal years 2005 
through 2009 from obligations at the levels specified 
in section 8103 of the Transportation Equity Act: A 
Legacy for Users using current assumptions. 
‘‘(ii) When the President submits the budget 
under section 1105 of title 31, United States Code, 
for fiscal year 2006, 2007, 2008, or 2009, OMB 
shall adjust the estimates made in clause (i) by the 
adjustments by subparagraphs (B) and (C). 
‘‘(E) OMB shall consult with the Committees 
on the Budget and include a report on adjustments 
under subparagraphs (B) and (C) in the preview re-
port.’’. 
SEC. 4. LEVEL OF OBLIGATION LIMITATIONS. 
(a) HIGHWAY CATEGORY.—For the purposes of sec-
tion 251(b) of the Balanced Budget and Emergency Def-
icit Control Act of 1985, the level of obligation limitations 
for the highway category is—
(1) for fiscal year 2004, $34,309,000,000; 
(2) for fiscal year 2005, $35,671,000,000; 
(3) for fiscal year 2006, $36,719,000,000; 
(4) for fiscal year 2007, $37,800,000,000; 
(5) for fiscal year 2008, $38,913,000,000; and 
(6) for fiscal year 2009, $40,061,000,000.
(b) MASS TRANSIT CATEGORY.—For the purposes of 
section 251(b) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, the level of obligation limita-
tions for the mass transit category is—
(1) for fiscal year 2004, $7,266,000,000; 
(2) for fiscal year 2005, $7,750,000,000; 
(3) for fiscal year 2006, $8,266,000,000; 
(4) for fiscal year 2007, $8,816,000,000; 
(5) for fiscal year 2008, $9,403,000,000; and 
(6) for fiscal year 2009, $10,029,000,000. 
For purposes of this subsection, the term ‘‘obligation limi-
tations’’ means the sum of budget authority and obligation 
limitations. 
SEC. 5. ADVANCE APPROPRIATIONS. 
Section 251 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding at the 
end the following new subsection: 
‘‘(d) ADVANCE APPROPRIATIONS.—In any of fiscal 
years 2005 through 2006, discretionary advance appro-
priations provided in appropriation Acts in excess of 
$23,558,000,000 shall be counted against the discre-
tionary spending limits for the fiscal year for which the 
appropriation Act containing the advance appropriation is 
enacted.’’.
SEC. 6. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT. 
(a) PURPOSE.—Section 252(a) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended to read as follows: 
‘‘(a) PURPOSE.—The purpose of this section is to as-
sure that any legislation that is enacted before October 
1, 2009, that causes a net increase in direct spending will 
trigger an offsetting sequestration.’’. 
(b) TIMING.—Section 252(b)(1) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended by striking ‘‘any net deficit increase’’ and all 
that follows through ‘‘2002,’’ and by inserting ‘‘any net 
increase in direct spending enacted before October 1, 
2009,’’. 
(c) CALCULATION
OF
DIRECT
SPENDING
IN-
CREASE.—Section 252(b)(2) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended—
(1) by striking ‘‘deficit’’ the first place it ap-
pears and inserting ‘‘direct spending’’; 
(2) in subparagraph (A) by striking ‘‘and re-
ceipts’’; 
(3) in subparagraph (C) by striking ‘‘and re-
ceipts’’; and 
(4) by amending the heading to read as follows: 
‘‘CALCULATION OF DIRECT SPENDING INCREASE.—
’’.