I
103D CONGRESS
1ST SESSION
H. R. 2172
To amend the Congressional Budget and Impoundment Control Act of 1974
and the Balanced Budget and Emergency Deficit Control Act of 1985
to establish categorical spending targets and sequestration against those
targets to balance the Federal budget by fiscal year 2000, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 19, 1993
Mr. MCMILLAN (for himself, Mr. KASICH, Mr. HOBSON, Mr. KOLBE, Mr.
SHAYS, and Mr. SMITH of Michigan) introduced the following bill; which
was referred jointly to the Committees on Government Operations and
Rules
A BILL
To amend the Congressional Budget and Impoundment Con-
trol Act of 1974 and the Balanced Budget and Emer-
gency Deficit Control Act of 1985 to establish categorical
spending targets and sequestration against those targets
to balance the Federal budget by fiscal year 2000, and
for other purposes.
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 ‘‘Health Care Reform
Budget Enforcement Act of 1993’’.
SEC. 2. EFFECTIVE DATES.
This Act and the amendments made by it shall take
effect on its date of enactment and shall apply to fiscal
year 1994 and subsequent fiscal years.
TITLE 
I—REQUIREMENT 
THAT
PRESIDENT 
SUBMIT 
AND
BUDGET 
COMMITTEES 
RE-
PORT 
BUDGETS 
THAT
ACHIEVE A BALANCED BUDG-
ET BY FISCAL YEAR 2000
SEC. 101. SUBMISSION OF BALANCED BUDGET BY THE
PRESIDENT.
Section 1105 of title 31, United States code, is
amended by inserting at the end the following new sub-
section:
‘‘(g) Any budget submitted to Congress pursuant to
subsection (a) for fiscal year 1994, 1995, 1996, 1997,
1998, 1999, or 2000 shall be a budget for that fiscal year
and the 4 ensuing fiscal years that provides for a balanced
budget for fiscal year 2000 and subsequent fiscal years
and for each such year is within the categorical targets
set forth in paragraphs (1) and (2) of section 601. Any
budget submitted to Congress pursuant to subsection (a)
for a fiscal year after fiscal year 2000 shall be a budget
that provides for a balanced budget for that fiscal year
and the 4 ensuing fiscal years and sets forth appropriate
categorical targets for discretionary appropriations and di-
rect spending.’’.
SEC. 102. REPORTING OF BALANCED BUDGETS.
Section 301 of the Congressional Budget Act of 1974
is amended by inserting at the end the following new sub-
section:
‘‘(j) REPORTING
OF BALANCED BUDGETS.—Any
joint resolution on the budget for fiscal year 1994, 1995,
1996, 1997, 1998, 1999, or 2000 as reported by the Com-
mittee on the Budget of each House, shall set forth appro-
priate levels for the fiscal year beginning on October 1
of the calendar year in which it is reported and for each
of the 4 ensuing fiscal years for the matters described in
section 301(a) and for each categorical target set forth
in paragraphs (1) and (2) of section 601 that provides
for a balanced budget by fiscal year 2000 and for each
fiscal year thereafter. Any joint resolution on the budget
for a fiscal year after fiscal year 2000, as reported by the
Committee on the Budget of each House, shall set forth
appropriate levels for the fiscal year beginning on October
1 of the calendar year in which it is reported and for each
of the 4 ensuing fiscal years for the matters described in
section 301(a) and set forth appropriate categorical tar-
gets for discretionary appropriations and direct spending
that provides for a balanced budget for that fiscal year
and each of the ensuing 4 fiscal years.’’.
SEC. 103. PROCEDURE IN THE HOUSE OF REPRESENTA-
TIVES.
Section 305(a) of the Congressional Budget Act of
1974 is amended by inserting at the end the following:
‘‘(8)(A) If the Committee on Rules of the
House of Representatives reports any rule or order
providing for the consideration of any joint resolu-
tion on the budget for a fiscal year, then it shall
also, within the same rule or order, provide for—
‘‘(i) the consideration of the text of any
joint resolution on the budget for that fiscal
year reported by the Committee on the Budget
of the House of Representatives pursuant to
section 301(j); and
‘‘(ii) the consideration of the text of each
joint resolution on the budget as introduced by
the majority leader pursuant to subparagraph
(B);
and such rule or order shall assure that a separate
vote occurs on each such budget.
‘‘(B) The majority leader of the House of Rep-
resentatives shall introduce a joint resolution on the
budget reflecting, without substantive revision, the
budget submitted by the President pursuant to sec-
tion 1105(g) of title 31, United States Code, as soon
as practicable after its submission.’’.
SEC. 104. PROCEDURE IN THE SENATE.
Section 305(b) of the Congressional Budget Act of
1974 is amended by inserting at the end the following:
‘‘(7) Notwithstanding any other rule, it shall al-
ways be in order in the Senate to consider an
amendment to a joint resolution on the budget for
a fiscal year comprising the text of any budget sub-
mitted by the President for that fiscal year as de-
scribed in section 1105(g) of title 31, United States
Code.’’.
TITLE II—JOINT BUDGET
RESOLUTIONS.
SEC. 201. AMENDMENTS TO THE BUDGET ACT TO CHANGE
CONCURRENT BUDGET RESOLUTIONS INTO
JOINT BUDGET RESOLUTIONS.
(a) TABLE OF CONTENTS.—The table of contents set
forth in section 1(b) of the Congressional Budget and Im-
poundment Control Act of 1974 is amended by striking
‘‘concurrent’’ each place it occurs therein and by inserting
‘‘joint’’ and by striking ‘‘Concurrent’’ and by inserting
‘‘Joint’’ in the item relating to section 303.
(b) DEFINITIONS.—
(1) Paragraph (4) of section 3 of the Congres-
sional Budget and Impoundment Control Act of
1974 is amended by striking ‘‘concurrent’’ each
place it occurs and inserting ‘‘joint’’.
(2) Paragraph (8) of section 3 of the Congres-
sional Budget and Impoundment Control Act of
1974 is amended by striking ‘‘by the Congress’’.
(c) TITLE III OF THE BUDGET ACT.—Title III of
the Congressional Budget Act of 1974 is amended by
striking ‘‘concurrent’’ each place it occurs therein and by
inserting ‘‘joint’’ and by striking ‘‘Concurrent’’ and by in-
serting ‘‘Joint’’ in the heading of section 303.
(d) TITLE
IV OF
THE
BUDGET
ACT.—Section
401(b)(2) of the Congressional Budget Act of 1974 is
amended by striking ‘‘concurrent’’ and by inserting
‘‘joint’’.
(e) TITLE IX OF THE BUDGET ACT.—Section 904(d)
of the Congressional Budget Act of 1974 is amended by
striking ‘‘concurrent’’ and by inserting ‘‘joint’’.
SEC. 202. TECHNICAL AND CONFORMING AMENDMENTS TO
THE RULES OF THE HOUSE OF REPRESENTA-
TIVES.
(a) RULE X.—Clauses 1(e)(2), 4(a)(2), 4(b)(2), 4(g),
4(h), and 4(i) of rule X of the Rules of the House of Rep-
resentatives are amended by striking ‘‘concurrent’’ each
place it appears therein and by inserting ‘‘joint’’.
(b) RULE XXIII.—Clause 8 of rule XXIII of the
Rules of the House of Representatives is amended by
striking ‘‘concurrent’’ each place it appears therein and
by inserting ‘‘joint’’.
(c) RULE XLIX.—Rule XLIX of the Rules of the
House of Representatives is repealed.
SEC. 203. TECHNICAL AND CONFORMING AMENDMENTS TO
THE DEFICIT CONTROL ACT OF 1985.
(a) SECTION 254.—Section 254(b)(2)(A) of the Defi-
cit Control Act of 1985 is amended by striking ‘‘concur-
rent’’ and by inserting ‘‘joint’’.
(b) SECTION 257.—Section 257(3) of the Deficit
Control Act of 1985 is amended by striking ‘‘concurrent’’
and by inserting ‘‘joint’’.
SEC. 204. ESTABLISHMENT OF NEW POINT OF ORDER.
Section 301 of the Congressional Budget Act of 1974
(as amended by section 102) is amended by adding at the
end the following new subsection:
‘‘(k)(1) It shall not be in order in the House of Rep-
resentatives or the Senate to consider any appropriation
or authorizing legislation for a fiscal year covered by a
joint resolution on the budget before that joint resolution
is enacted.
‘‘(2) The point or order set forth in paragraph (1)
may only be waived by an affirmative vote of not less than
two-thirds of those voting, a quorum being present.’’.
TITLE 
III—CATEGORICAL 
SE-
QUESTRATION AND PAY-AS-
YOU-GO.
SEC. 301. REVISED MAXIMUM DEFICIT AMOUNTS AND DIS-
CRETIONARY SPENDING TARGETS.
(a) DIRECT SPENDING TARGET.—Section 601(a)(1)
of the Congressional Budget Act of 1974 is amended to
read as follows:
‘‘(1) DIRECT
SPENDING
TARGET.—The term
‘direct spending target’ means—
‘‘ENTITLEMENT TARGETS
(in billions of dollars)
1994
1995
1996
1997
1998
1999
2000
[NON-MEANS-
TESTED]
Medicare ..................................
154
164
170
176
182
187
193
Federal civilian retirement ......
Military retirement ..................
Other retirement/disability ......
Unemployment compensation ..
Veterans’ benefits ....................
Farm price supports ................
Social services ..........................
Credit reform liquidating ac-
count ....................................
–2
–8
–6
–7
–1
–1
Other .......................................
[MEANS-TESTED]
Medicaid ..................................
100
105
110
115
Food stamps ............................
SSI ..........................................
Family support ........................
Veterans’ pensions ...................
Child nutrition .........................
EITC .......................................
Stafford loans ..........................
‘‘ENTITLEMENT TARGETS—Continued
(in billions of dollars)
1994
1995
1996
1997
1998
1999
2000
Other .......................................
Total mandatory (exclud-
ing social security) .......
479
491
498
526
546
565
581’’.
(b) DISCRETIONARY SPENDING TARGET.—Section
601(a)(2) of the Congressional Budget Act of 1974 is
amended to read as follows:
‘‘(2) DISCRETIONARY SPENDING TARGET.—The
term ‘discretionary spending target’ means—
‘‘Fiscal Year
Domestic targets (in bil-
lions of dollars)
National security targets
(in billions of dollars)
1994 .....................................
228
293
1995 .....................................
234
287
1996 .....................................
234
287
1997 .....................................
234
287
1998 .....................................
234
287
1999 .....................................
234
287
2000 .....................................
234
287’’.
(c) ADJUSTMENTS
TO DISCRETIONARY SPENDING
TARGETS.—Section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to
read as follows:
‘‘(b) ADJUSTMENTS TO DISCRETIONARY SPENDING
TARGETS.—Whenever appropriate, adjustments to the
discretionary spending targets (and to those targets as cu-
mulatively adjusted) for one or more fiscal years shall be
made to reflect the following:
‘‘(1) CHANGES IN CONCEPTS.—For any fiscal
year, the adjustments produced by any change in
budget accounting concepts (including scorekeeping
conventions, budget classifications, and definitions)
shall equal the current-year levels of new budget au-
thority using up-to-date concepts minus those levels
using the concepts in effect before the change. Such
changes in concepts may only be made in consulta-
tion with the Committees on Appropriations and the
Budget of the House of Representatives and Senate,
CBO, and OMB. A change in budget classifications
includes any change from the assumption that all
amounts provided in appropriation Acts are classi-
fied as discretionary except those included under the
heading ‘Mandatory Appropriations’ in the joint ex-
planatory statement of managers accompanying the
conference report on the Budget Reform Act of
1993.
‘‘(2) CHANGES
IN
INFLATION.—(A) For the
budget year and each outyear through 2000, the ad-
justments produced by changes in inflation shall
equal the discretionary spending target for each
such year multiplied by the inflation adjustment fac-
tor (for the fiscal year immediately preceding the
current year) computed under subparagraph (B).
‘‘(B) The inflation adjustment factor shall be
calculated by subtracting 1 from the ratio of (i) the
level of year-over-year inflation measured for the fis-
cal year immediately preceding the current year, and
(ii) the applicable estimated level for that year set
forth below:
For 1992, 1.030.
For 1993, 1.031.
For 1994, 1.027.
For 1995, 1.027.
For 1996, 1.027.
Inflation shall be measured by the average of the es-
timated consumer price index for all urban consum-
ers for a fiscal year divided by the average index for
the prior fiscal year.
‘‘(3) EXPIRING
HOUSING
CONTRACTS.—For
each budget year through 2000, the adjustment
shall be the amount of new budget authority needed
to renew expiring multiyear subsidized housing con-
tracts or provide contracts to replace units lost due
to prepayments, with the per-contract renewal/re-
placement cost equal to the average current-year
cost of renewal or replacement contracts.
‘‘(4) EMERGENCIES.—If for any fiscal year ap-
propriations for discretionary accounts are enacted
that are designated as emergency requirements by
statute, the adjustment shall be the amount of those
appropriations that the President also designates, in
writing, as emergency requirements within 5 days of
the enactment of those appropriations. If any
amount previously designated as an emergency re-
quirement is rescinded, the adjustment shall be the
amount of that rescission.’’.
(d) REVENUE
RAISING
RECOMMENDATIONS
TO
COVER SHORTFALL.—Section 251 of the Balanced Budg-
et and Emergency Deficit Control Act of 1985 is amended
by adding at the end the following new subsection:
‘‘(c) RECONCILIATION PROCESS TO AVOID SEQUES-
TRATION.—Whenever the Committee on Appropriations of
the House or Senate believes that a sequestration would
be necessary under this section to eliminate a budget-year
breach in any discretionary appropriation category as a
result of the enactment of any appropriation Act, that
committee may forward a report to the Committee on
Ways and Means or the Committee on Finance, as the
case may be, recommending a revenue increase to cover
the shortfall. If such a revenue increase measure of suffi-
cient size to cover the shortfall is enacted into law during
that session of Congress, then no categorical sequestration
may occur under this section as a result of that appropria-
tion Act.’’.
(e) REVENUE SHORTFALL POINT OF ORDER.—Sec-
tion 253 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
‘‘SEC. 253. REVENUE SHORTFALL POINT OF ORDER.
‘‘(a) POINT OF ORDER.—It shall not be in order in
the House of Representatives or the Senate to consider
any bill or joint resolution, or any conference report there-
on or amendment thereto, reducing revenues for any fiscal
year through fiscal year 2000 unless it also contains an
amendment to section 601(a)(1) or 601(a)(2) of the Con-
gressional Budget Act of 1974 to reduce any combination
of entitlement targets or discretionary spending targets in
order to make that bill, joint resolution, conference report,
or amendment deficit-neutral for each such fiscal year.
‘‘(b) WAIVER.—The point of order set forth in para-
graph (1) may only be waived by an affirmative vote of
not less than two-thirds of those voting, a quorum being
present.’’.
SEC. 302. LIMITATION ON DIRECT SPENDING.
(a) LIMITATION
ON DIRECT SPENDING.—Section
252 of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 is amended to read as follows:
‘‘SEC. 252. LIMITATION ON DIRECT SPENDING.
‘‘(a) PERMANENT
SEQUESTRATION
OF
DIRECT
SPENDING.—
‘‘(1) APPLICATION.—Obligations in sequestered
direct spending accounts shall be reduced in the fis-
cal year in which a sequestration occurs and in all
succeeding fiscal years. Notwithstanding any other
provision of this section, after the first direct spend-
ing sequestration, any later sequestration shall re-
duce direct spending by an amount in addition to,
rather than in lieu of, the reduction in direct spend-
ing in place under the existing sequestration or se-
questrations.
‘‘(2) SEQUESTRATION.—Within 15 calendar
days after Congress adjourns to end a session and
on the same day as a sequestration (if any) under
section 251, there shall be a sequestration to elimi-
nate a budget-year breach (if any) in any direct
spending category within the direct spending target.
‘‘(b) ELIMINATING EXCESS DIRECT SPENDING.—
The amount required to be sequestered in a fiscal year
under subsection (a) shall be obtained from direct spend-
ing accounts. Each non-exempt direct spending account
in a category within the direct spending target shall be
reduced by a uniform percentage necessary to make the
reduction in direct spending required in that category to
stay within the direct spending target.
‘‘(c) RECONCILIATION PROCESS TO AVOID SEQUES-
TRATION.—Whenever a committee of the House or Senate
believes that a sequestration would be necessary under this
section to eliminate a budget-year breach in any direct
spending category as a result of the enactment of any Act
under its jurisdiction, that committee may forward a re-
port to the Committee on Ways and Means or the Commit-
tee on Finance, as the case may be, recommending a reve-
nue increase to cover the shortfall. If such a revenue in-
crease measure of sufficient size to cover the shortfall is
enacted into law during that session of Congress, then no
categorical sequestration may occur under this section as
a result of that Act.’’.
SEC. 303. EXEMPT PROGRAMS AND ACTIVITIES.
(a) EXEMPTIONS.—Section 255 of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended to read as follows:
‘‘SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
‘‘(a) SOCIAL SECURITY BENEFITS.—Benefits payable
under the old-age, survivors, and disability insurance pro-
gram established under title II of the Social Security Act
shall be exempt from reduction from any order issued
under this part.
‘‘(b) NET INTEREST.—No reduction of payments for
net interest (all of major functional category 900) shall
be made under any order issued under this part.’’.
(b) REPEALER.—(1) Section 256 of the Balanced
Budget and Emergency Deficit Control Act of 1985 (relat-
ing to exceptions, limitations, and special rules) is re-
pealed.
(2) The item relating to section 255 in the table of
contents set forth in section 250(a) of the Balanced Budg-
et and Emergency Deficit Control Act of 1985 is repealed.
SEC. 304. TECHNICAL AND CONFORMING AMENDMENTS TO
THE BALANCED BUDGET AND EMERGENCY
DEFICIT CONTROL ACT OF 1985.
(a) DEFINITION OF CATEGORY.—Section 250(c)(4)
of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended to read as follows:
‘‘(4) The term ‘category’ means for fiscal years
1994, 1995, 1996, 1997, 1998, 1999, and 2000—
‘‘(A) when referring to discretionary ap-
propriations, either of the following subsets: na-
tional security (defense and international) or
domestic; and
‘‘(B) when referring to direct spending,
any of the 19 categories set forth in section
601(a)(2) of the Congressional Budget Act of
1974.
Discretionary appropriations in the domestic cat-
egory and in the national security (defense and
international) category and accounts in the 19 direct
spending categories referred to in the preceding sen-
tence shall be those so designated in the joint state-
ment of managers accompanying this Act. New ac-
counts or activities shall be categorized in consulta-
tion with the Committees on Appropriations and the
Budget of the House of Representatives and the
Senate.’’.
(b) DEFINITION OF BUDGETARY RESOURCES.—Sec-
tion 250(c)(6)(B) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking ‘‘or
1995’’ and inserting ‘‘1995, 1996, 1997, 1998, 1999, or
2000’’.
(c) ENFORCING DISCRETIONARY SPENDING TAR-
GETS.—Section 251 of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended—
(1) in subsection (a), by striking ‘‘and section
253’’ and by striking ‘‘1995’’ in its side heading and
inserting ‘‘2000’’;
(2) in subsection (b)(1), by striking ‘‘or 1995’’
both places it appears and inserting ‘‘1995, 1996,
1997, 1998, 1999, or 2000’’;
(3) in subsection (b)(2), by striking ‘‘or 1995’’
the first place it appears and inserting ‘‘1995, 1996,
1997, 1998, 1999, or 2000’’ and by striking
‘‘through 1995’’ and inserting ‘‘through 2000’’; and
(4) in subsection (b)(2)(D), by striking ‘‘or
1995’’ and inserting ‘‘1995, 1996, 1997, 1998,
1999, or 2000’’.
(d) REPORTS AND ORDERS.—Section 254 of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
is amended—
(1) by striking subsection (c);
(2)(A) in subsection (d)(1), by striking ‘‘, pay-
as-you-go, and deficit’’ and inserting ‘‘and direct
spending’’ and by striking ‘‘1995’’ and inserting
‘‘2000’’;
(B) in subsection (d), by amending paragraph
(3) to read as follows:
‘‘(3) DIRECT
SPENDING
SEQUESTRATION
RE-
PORTS.—The preview reports shall set forth esti-
mates, for the current year and each subsequent
year through 2000, of the applicable direct spending
targets for each category.’’; and
(C) by striking paragraph (4) of subsection (d);
and
(3)(A) in subsection (g)(2)(A), by striking
‘‘1995’’ and inserting ‘‘2000’’; and
(B) by amending paragraph (3) of subsection
(g) to read as follows:
‘‘(3) DIRECT
SPENDING
SEQUESTRATION
RE-
PORTS.—The final reports shall set forth estimates
for each of the following:
‘‘(A) For the current year and each subse-
quent year through 2000 the applicable direct
spending targets for each category.
‘‘(B) For the current year and the budget
year the estimated new budget authority and
outlays for each category and the breach, if
any, in each category.
‘‘(C) For each category for which a seques-
tration is required, the sequestration percent-
ages necessary to achieve the required reduc-
tion.
‘‘(D) For the budget year, for each ac-
count to be sequestered, estimates of the base-
line level of sequesterable budgetary resources
and resulting outlays and the amount of budg-
etary resources to be sequestered and resulting
outlay reductions.’’.
(e) EXTENSION
OF EXPIRATION DATE.—Section
274(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by striking ‘‘1995’’ and
inserting ‘‘2000’’.
(f) TABLE OF SECTIONS.—The table of sections set
forth in section 250(a) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended—
(1) in the item relating to section 252, by strik-
ing ‘‘Enforcing pay-as-you-go’’ and inserting ‘‘Limi-
tation on direct spending’’; and
(2) by striking the item relating to section 253.
SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS TO
TITLE VI OF THE CONGRESSIONAL BUDGET
ACT OF 1974.
(a) POINT
OF ORDER
IN
THE SENATE.—Section
601(b)(1) of the Congressional Budget Act of 1974 is
amended by striking ‘‘or 1995’’ and inserting ‘‘1995,
1996, 1997, 1998, 1999, or 2000’’.
(b) COMMITTEE
ALLOCATIONS
AND
ENFORCE-
MENT.—Section 602 of the Congressional Budget Act of
1974 is amended by striking ‘‘1995’’ each place it appears
and inserting ‘‘2000’’.