graph (1) falls on a Sunday or legal holiday, such 
order shall be issued on the following day. 
(b) EFFECTS OF SEQUESTRATION.—The effects of 
sequestration shall be as follows: 
(1) Budgetary resources sequestered from any 
account shall be permanently cancelled, except as 
provided in paragraph (5). 
(2) Except as otherwise provided, the same per-
centage sequestration shall apply to all programs, 
projects, and activities within a budget account (with 
programs, projects, and activities as delineated in 
the appropriation Act or accompanying report for 
the relevant fiscal year covering that account). 
(3) Administrative regulations or similar ac-
tions implementing a sequestration shall be made 
within 120 days of the sequestration order. To the 
extent that formula allocations differ at different 
levels of budgetary resources within an account, pro-
gram, project, or activity, the sequestration shall be 
interpreted as producing a lower total appropriation, 
with the remaining amount of the appropriation 
being obligated in a manner consistent with program 
allocation formulas in substantive law. 
(4) Except as otherwise provided, obligations or 
budgetary resources in sequestered accounts shall be 
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reduced only in the fiscal year in which a sequester 
occurs. 
(5) Budgetary resources sequestered in special 
fund accounts and offsetting collections sequestered 
in appropriation accounts shall not be available for 
obligation during the fiscal year in which the seques-
tration occurs, but shall be available in subsequent 
years to the extent otherwise provided in law. 
(c) SUBMISSION AND AVAILABILITY OF REPORTS.— 
Each report required by this section shall be submitted, 
in the case of CBO, to the House of Representatives, the 
Senate, and OMB and, in the case of OMB, to the House 
of Representatives, the Senate, and the President on the 
day it is issued. On the following day a notice of the report 
shall be printed in the Federal Register. 
SEC. 4. GAO COMPLIANCE REPORT. 
Upon request of the Committee on the Budget of the 
House of Representatives or the Senate, the Comptroller 
General shall submit to the Congress and the President 
a report on— 
(1) the extent to which each order issued by the 
President under this Act complies with all of the re-
quirements contained in this Act, either certifying 
that the order fully and accurately complies with 
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such requirements or indicating the respects in 
which it does not; and 
(2) the extent to which each report issued by 
OMB or CBO under this section complies with all of 
the requirements contained in this Act, either certi-
fying that the report fully and accurately complies 
with such requirements or indicating the respects in 
which it does not. 
SEC. 5. DISCRETIONARY SEQUESTRATION REPORTS. 
(a) DISCRETIONARY SEQUESTRATION REPORTS.— 
(1) REPORTING REQUIREMENTS.—On the dates 
specified in section 3(a), OMB and CBO shall each 
issue a Discretionary Sequestration Report, updated 
to reflect laws enacted through those dates. 
(2) DISCRETIONARY
SPENDING.—The Discre-
tionary Sequestration Reports for each of fiscal year 
2011 through 2015 shall set forth estimates for each 
of the following: 
(A) The applicable discretionary spending 
limits. 
(B) The new budget authority and the 
breach, if any. 
(C) The sequestration percentages nec-
essary to eliminate the breach. 
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(D) For the budget year, for each account 
to be sequestered, the level of enacted, 
sequesterable budget authority and resulting es-
timated outlays to be sequestered. 
(3) EXPLANATION
OF
DIFFERENCES.—The 
OMB report shall explain any differences between 
OMB and CBO estimates for any breach and any 
required discretionary sequestration percentages. 
The OMB report shall also explain differences in the 
amount of sequesterable resources for any budget 
account to be reduced if such difference is greater 
than $5,000,000. 
(b) ECONOMIC AND TECHNICAL ASSUMPTIONS.—In 
all reports required by this section, OMB shall use the 
same economic and technical assumptions as used in the 
most recent budget submitted by the President under sec-
tion 1105(a) of title 31, United States Code. 
(c) ADJUSTMENTS.—When OMB submits a report 
under this section for a fiscal year, OMB shall calculate, 
and the subsequent reports and budgets submitted by the 
President under section 1105(a) of title 31, United States 
Code shall include, adjustments to discretionary spending 
limits (and those limits as adjusted) for the fiscal year 
and each succeeding year. 
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SEC. 6. LIMITS. 
(a) DISCRETIONARY SPENDING LIMITS.—As used in 
this Act, the term ‘‘discretionary spending limit’’ means— 
(1) 
with 
respect 
to 
fiscal 
year 
2011, 
$1,120,488,000 in new budget authority; 
(2) 
with 
respect 
to 
fiscal 
year 
2012, 
$1,008,439,000 in new budget authority; 
(3) 
with 
respect 
to 
fiscal 
year 
2013, 
$907,596,000 in new budget authority; 
(4) 
with 
respect 
to 
fiscal 
year 
2014, 
$816,836,000 in new budget authority; 
(5) 
with 
respect 
to 
fiscal 
year 
2015, 
$735,152,000 in new budget authority; and 
(6) with respect to fiscal years following 2015, 
the President shall recommend and the Congress 
shall consider legislation setting limits for those fis-
cal years. 
(b) ENFORCEMENT.— 
(1) SEQUESTRATION.—On the date specified in 
section 3(a), there shall be a sequestration to elimi-
nate a budget-year breach. 
(2) ELIMINATING
A
BREACH.—Each account 
shall be reduced by a dollar amount calculated by 
multiplying the enacted level of budget authority for 
that year in that account at that time by the uni-
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form percentage necessary to eliminate a breach of 
the discretionary spending limit. 
(3) PART-YEAR
APPROPRIATIONS.—If, on the 
date the report is issued under paragraph (1), there 
is in effect an Act making continuing appropriations 
for part of a fiscal year for any budget account, then 
the dollar sequestration calculated for that account 
under paragraph (2) shall be subtracted from— 
(A) the annualized amount otherwise avail-
able by law in that account under that or a sub-
sequent part-year appropriation; and 
(B) when a full-year appropriation for that 
account is enacted, from the amount otherwise 
provided by the full-year appropriation. 
(4) LOOK-BACK.—If, after June 30, an appro-
priation for the fiscal year in progress is enacted 
that causes a breach for that year (after taking into 
account any previous sequestration), the discre-
tionary spending limit for the next fiscal year shall 
be reduced by the amount of that breach. 
(5) WITHIN-SESSION SEQUESTRATION REPORTS 
AND ORDER.—If an appropriation for a fiscal year 
in progress is enacted (after Congress adjourns to 
end the session for that budget year and before July 
1 of that fiscal year) that causes a breach, 10 days 
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