making appropriations, otherwise making funds available,
or granting authority, for any of the following categories
of projects and activities:
‘‘(1) Agriculture, rural development, and relat-
ed agencies programs.
‘‘(2) The Departments of Commerce, Justice,
and State, the judiciary, and related agencies.
‘‘(3) The Department of Defense.
‘‘(4) The government of the District of Colum-
bia and other activities chargeable in whole or in
part against the revenues of the District.
‘‘(5) The Departments of Labor, Health and
Human Services, and Education, and related agen-
cies.
‘‘(6) The Department of Housing and Urban
Development, and sundry independent agencies,
boards, commissions, corporations, and offices.
‘‘(7) Energy and water development.
‘‘(8) Foreign assistance and related programs.
‘‘(9) The Department of the Interior and relat-
ed agencies.
‘‘(10) Military construction.
‘‘(11) The Department of Transportation and
related agencies.
‘‘(12) The Treasury Department, the U.S.
Postal Service, the Executive Office of the President,
and certain independent agencies.
‘‘(13) The legislative branch.’’.
(b) CONFORMING AMENDMENT.—Section 202(e)(3)
of the Congressional Budget Act of 1974 is amended by
inserting ‘‘and on or before September 30’’ before ‘‘of each
year’’.
(c) CHAPTER ANALYSIS.—The analysis of chapter 13
of title 31, United States Code, is amended by inserting
after the item relating to section 1310 the following new
item:
‘‘1311. Continuing appropriations.’’.
(d) EFFECT
OF AMENDMENTS.—Nothing in the
amendments made by this subsection shall be construed
to affect Government obligations mandated by other law,
including obligations with respect to social security, medi-
care, and medicaid.
TITLE VII—BUDGETING IN AN
ERA OF SURPLUSES
SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET
SURPLUS.
(a) 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 direct spending or receipts legislation does not
increase the deficit or exceed the on-budget surplus.’’.
(b) SEQUESTRATION.—(1) Section 252(b)(1) of the
Balanced Budget and Emergency Deficit Control Act of
1985 is amended by inserting ‘‘minus the amount for the
budget year, if any, estimated under paragraph (3)’’ after
‘‘as calculated under paragraph (2)’’.
(2) Section 252(b) of such Act is amended by adding
at the end the following new paragraph:
‘‘(3) ESTIMATE
OF ON-BUDGET SURPLUS.—
OMB estimates for the budget year of the excess of
receipts over outlays (if any) as set forth in the
OMB sequestration update report as calculated pur-
suant to section 254(c)(3). These estimates shall not
include outlays and receipts of the Federal Old-Age
and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund, or any other off-
budget entity.’’.
(c) CLARIFICATION OF EXISTING LAW.—Section 252
of the Balanced Budget and Emergency Deficit Control
Act of 1985 (as amended by section 412(b)) is further
amended by adding at the end the following new sub-
section:
‘‘(f) MEANING
OF NET DEFICIT INCREASE.—For
purposes of this section, a net deficit is the amount by
which decreases in revenues plus increases in outlays ex-
ceeds increases in revenues plus decreases in outlays.’’.
(d) REPORTS.—
(1) PREVIEW.—Section 254(c)(3) of the Bal-
anced Budget and Emergency Deficit Control Act of
1985 is amended by adding at the end the following
new subparagraph:
‘‘(D) The estimated excess of receipts over
outlays for the budget year (if any) (assuming
the levels appropriated if all regular appropria-
tions (or a continuing appropriation) are en-
acted minus any amounts sequestered for that
year under section 251, but if that is not the
case, then assuming compliance with the ad-
justed discretionary spending limits set forth in
section 251(c)) (but if no such limits are in ef-
fect for such year, then assume compliance with
such limits for the last fiscal year for which
such limits were in effect) without taking into
account the effect of direct spending and re-
ceipts legislation for such year calculated under
section 252(d) enacted after the date of enact-
ment of this subparagraph.’’.
(2) FINAL.—Section 254(f)(3) of the Balanced
Budget and Emergency Deficit Control Act of 1985
is amended by adding at the end the following new
sentence: ‘‘Notwithstanding subsection (j), actual
levels of enacted discretionary appropriations or up-
to-date adjusted discretionary spending limits (but if
no such limits are in effect for such year, then as-
sume such limits for the last fiscal year for which
such limits were in effect), as applicable, shall be
used in the final pay-as-you go report regarding in-
formation required by subsection (c)(3)(D) to be in-
cluded in the pay-as-you-go sequestration preview re-
port.’’.
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