106 
for a lower uniform percentage reduction than would 
otherwise apply. 
‘‘(2) LIMITATION.—The President may not use 
the authority provided by paragraph (1) unless the 
President notifies the Congress of the manner in 
which such authority will be exercised on or before 
the date specified in section 254(a) for the budget 
year.’’. 
SEC. 203. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES. 
(a) IN GENERAL.—Section 256 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended to read as follows: 
‘‘SEC. 
256. 
EXCEPTIONS, 
LIMITATIONS, 
AND 
SPECIAL 
RULES. 
‘‘(a) NATIONAL WOOL ACT AND THE SPECIAL MILK 
PROGRAM.—Automatic spending increases are increases 
in outlays due to changes in indexes in the following pro-
grams: 
‘‘(1) National Wool Act; and 
‘‘(2) Special milk program. 
In those programs all amounts other than the automatic 
spending increases shall be exempt from reduction under 
any sequestration order. 
‘‘(b) STUDENT LOANS.—For all student loans under 
part B or D of title IV of the Higher Education Act of
107 
1965 made during the period when a sequestration order 
under section 254 is in effect as required by section 252 
or 253, origination fees under sections 438(c)(2) and 
455(c) of that Act shall each be increased by 0.50 percent-
age point. 
‘‘(c) FOSTER CARE
AND ADOPTION ASSISTANCE 
PROGRAMS.—Any sequestration order shall make the re-
duction otherwise required under the foster care and adop-
tion assistance programs (established by part E of title 
IV of the Social Security Act) only with respect to pay-
ments and expenditures made by States in which increases 
in foster care maintenance payment rates or adoption as-
sistance payment rates (or both) are to take effect during 
the fiscal year involved, and only to the extent that the 
required reduction can be accomplished by applying a uni-
form percentage reduction to the Federal matching pay-
ments that each such State would otherwise receive under 
section 474 of that Act (for such fiscal year) for that por-
tion of the State’s payments attributable to the increases 
taking effect during that year. No State’s matching pay-
ments from the Government for foster care maintenance 
payments or for adoption assistance maintenance pay-
ments may be reduced by a percentage exceeding the ap-
plicable domestic sequestration percentage. No State may, 
after the date of the enactment of this Act, make any
108 
change in the timetable for making payments under a 
State plan approved under part E of title IV of the Social 
Security Act which has the effect of changing the fiscal 
year in which expenditures under such part are made. 
‘‘(d) LOW-INCOME PROGRAMS.—(1) Benefit pay-
ments or payments to States or other entities for the pro-
grams listed in paragraph (2) shall not be reduced by 
more than 2 percent under any sequestration order. When 
reduced under an end-of-session sequestration order, those 
benefit reductions shall occur starting with the payment 
made at the start of January. When reduced under a with-
in-session sequestration order, those benefit reductions 
shall occur starting with the next periodic payment. 
‘‘(2) The programs referred to in paragraph (1) are 
the following: 
‘‘Child Nutrition (12–3539–0–1–605). 
‘‘Food Stamp Programs (12–3505–0–1–605). 
‘‘Grants to States for Medicaid (75–0512–0–1– 
551). 
‘‘State Children’s Health Insurance Fund (75– 
0515–0–1–551). 
‘‘Supplemental Security Income Program (75– 
0406–0–1–609). 
‘‘Temporary Assistance for Needy Families 
(75–1552–0–1–609).