I 
112TH CONGRESS 
2D SESSION 
H. R. 3844 
To provide for greater transparency and honesty in the Federal budget 
process. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 31, 2012 
Mrs. ROBY (for herself, Mr. HUIZENGA of Michigan, Mr. SOUTHERLAND, Mr. 
KINZINGER of Illinois, Mrs. ADAMS, Mr. HUELSKAMP, Mr. DUNCAN of 
South Carolina, Mr. WEST, Mr. GIBBS, Mrs. ELLMERS, Mr. CRAVAACK, 
Mr. JOHNSON of Ohio, Mr. GRIFFIN of Arkansas, Mr. REED, Mr. 
FITZPATRICK, Ms. HAYWORTH, Mr. GARDNER, Mr. BERG, Mr. BROOKS, 
Mr. DUFFY, Mr. CANSECO, Mrs. BLACK, Mr. ROSS of Florida, Mr. 
DOLD, Mr. AUSTIN SCOTT of Georgia, Mr. FLORES, Mr. HULTGREN, Mr. 
CRAWFORD, and Mr. BACHUS) introduced the following bill; which was 
referred to the Committee on the Budget, and in addition to the Commit-
tees on Rules and Oversight and Government Reform, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To provide for greater transparency and honesty in the 
Federal budget process. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Honest Budget Act of 2012’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. No budget—no appropriations. 
Sec. 3. No phony emergency designations. 
Sec. 4. Strengthen the Federal Credit Reform Act of 1990. 
Sec. 5. No changes in mandatory programs in appropriation bills. 
Sec. 6. Don’t count rescissions that don’t save money. 
Sec. 7. Prohibition on step increases for Federal employee compensation. 
Sec. 8. Point of order against advance appropriations. 
Sec. 9. Prohibit timing shifts. 
Sec. 10. Budget scoring rule relating to transfers from the general fund of the 
Treasury to the Highway Trust Fund that increase public in-
debtedness. 
SEC. 2. NO BUDGET—NO APPROPRIATIONS. 
Section 904 of the Congressional Budget Act of 1974 
(2 U.S.C. 621 note) is amended— 
(1) in subsection (c)(1), by inserting after ‘‘Sec-
tions’’ the following: ‘‘303(c),’’; and 
(2) in subsection (d)(2), by inserting after ‘‘sec-
tions’’ the following: ‘‘303(c),’’. 
SEC. 3. NO PHONY EMERGENCY DESIGNATIONS. 
(a) EMERGENCY REQUIREMENT IN A BILL, JOINT 
RESOLUTION, OR CONFERENCE REPORT.— 
(1) IN GENERAL.—It shall not be in order in 
the House of Representatives or the Senate to con-
sider any bill, joint resolution, or conference report 
that— 
(A) designates as an emergency require-
ment, pursuant to section 403 of S. Con. Res. 
13 (110th Congress, the FY 2010 Budget Res-
olution), clause 10(c) of rule XXI of the Rules 
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of the House of Representatives, section 4(g) of 
the Statutory Pay-As-You-Go Act of 2010, or 
section 251(b)(2)(A)(i) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 any 
provision that creates discretionary or direct 
spending or decreases revenues; or 
(B) designates as being for disaster relief 
pursuant to section 251(b)(2)(D) of the Bal-
anced Budget and Emergency Deficit Control 
Act of 1985. 
(2) WAIVER.—An affirmative vote of three- 
fifths of the Members, duly chosen and sworn, shall 
be required to sustain an appeal of the ruling of the 
Chair on a point of order against such a measure 
raised under this subsection. 
(3) EXCEPTION.—For purposes of this sub-
section, a conference report may include an emer-
gency designation only if it was also adopted in the 
House of Representatives or Senate version of the 
measure subject to the conference report. 
(b) EMERGENCY
REQUIREMENT
IN
AN
AMEND-
MENT.— 
(1) IN GENERAL.—It shall not be in order in 
the House of Representatives or the Senate to con-
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sider any bill, joint resolution, or conference report 
that— 
(A) designates as an emergency require-
ment, pursuant to section 403 of S. Con. Res. 
13 (110th Congress, the FY 2010 Budget Res-
olution), clause 10(c) of rule XXI of the Rules 
of the House of Representatives, section 4(g) of 
the Statutory Pay-As-You-Go Act of 2010, or 
section 251(b)(2)(A)(i) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 any 
provision that creates discretionary or direct 
spending or decreases revenues; or 
(B) designates as being for disaster relief 
pursuant to section 251(b)(2)(D) of the Bal-
anced Budget and Emergency Deficit Control 
Act of 1985. 
(2) WAIVER AND APPEAL.—A point of order 
against an amendment under this subsection may be 
waived or suspended only by an affirmative vote of 
three-fifths of the Members, duly chosen and sworn. 
In the Senate, an affirmative vote of three-fifths of 
the Members, duly chosen and sworn, shall be re-
quired to sustain an appeal of the ruling of the 
Chair on a point of order against such an amend-
ment raised under this subsection. 
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(c) RULES OR ORDERS IN THE HOUSE OF REP-
RESENTATIVES.—In the House of Representatives, it shall 
not be in order to consider a rule or order that waives 
the application of subsection (a) or (b). As disposition of 
a point of order under this subsection, the Chair shall put 
the question of consideration with respect to the rule or 
order. The question of consideration shall be debatable for 
10 minutes by the Member initiating the point of order 
and for 10 minutes by an opponent, but shall otherwise 
be decided without intervening motion except one that the 
House adjourn. 
(d) CHANGES TO THE STATUTORY PAY-AS-YOU-GO 
ACT OF 2010.—Section 4(g) of the Statutory Pay-As-You- 
Go Act of 2010 is amended by striking paragraph (3) and 
inserting the following: 
‘‘(3) DESIGNATION
IN
THE
HOUSE
OF
REP-
RESENTATIVES
OR
THE
SENATE.—A provision or 
provisions designated as an emergency requirement 
pursuant to this section are subject to section 3 of 
the Honest Budget Act of 2012.’’. 
SEC. 4. STRENGTHEN THE FEDERAL CREDIT REFORM ACT 
OF 1990. 
Title V of the Congressional Budget Act of 1990 is 
amended to read as follows: 
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‘‘TITLE V—CREDIT REFORM 
‘‘SEC. 500. SHORT TITLE. 
‘‘This title may be cited as the ‘Federal Credit Re-
form Act of 1990’. 
‘‘SEC. 501. PURPOSES. 
‘‘The purposes of this title are to— 
‘‘(1) measure more accurately the costs of Fed-
eral credit programs and financial investments by 
accounting for them on a fair value basis; 
‘‘(2) place the cost of credit programs and fi-
nancial investments on a budgetary basis equivalent 
to other Federal spending; 
‘‘(3) encourage the delivery of benefits in the 
form most appropriate to the needs of beneficiaries; 
and 
‘‘(4) improve the allocation of resources among 
Federal programs. 
‘‘SEC. 502. DEFINITIONS. 
‘‘For purposes of this title: 
‘‘(1) The term ‘direct loan’ means a disburse-
ment of funds by the Government to a non-Federal 
borrower under a contract that requires the repay-
ment of such funds with or without interest. The 
term includes the purchase of, or participation in, a 
loan made by another lender and financing arrange-
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ments that defer payment for more than 90 days, in-
cluding the sale of a Government asset on credit 
terms. The term does not include the acquisition of 
a federally guaranteed loan in satisfaction of default 
claims or the price support loans of the Commodity 
Credit Corporation. 
‘‘(2) The term ‘direct loan obligation’ means a 
binding agreement by a Federal agency to make a 
direct loan when specified conditions are fulfilled by 
the borrower. 
‘‘(3) The term ‘loan guarantee’ means any 
guarantee, insurance, or other pledge with respect to 
the payment of all or a part of the principal or inter-
est on any debt obligation of a non-Federal borrower 
to a non-Federal lender, but does not include the in-
surance of deposits, shares, or other withdrawable 
accounts in financial institutions. 
‘‘(4) The term ‘loan guarantee commitment’ 
means a binding agreement by a Federal agency to 
make a loan guarantee when specified conditions are 
fulfilled by the borrower, the lender, or any other 
party to the guarantee agreement. 
‘‘(5)(A) The term ‘financial investment’ means 
an investment by the Government in any securities 
(debt or equity), stocks, bonds, or futures, options, 
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swaps, or other derivatives, issued by a non-Federal 
entity, including State, local tribal, and foreign gov-
ernments, and private organizations, regardless of 
whether the issuances are federally guaranteed, or 
issued by a Federal entity if the issuance consists of 
marketable securities. 
‘‘(B) The term includes Government invest-
ments in money market and mutual funds, even if 
the money market or mutual fund’s assets consist 
entirely of Federal securities. 
‘‘(6) The term ‘financial investment commit-
ment’ means a binding agreement by a Federal 
agency to acquire a financial investment when speci-
fied conditions are fulfilled by other party to the in-
vestment agreement. 
‘‘(7)(A) The term ‘cost’ means the sum of the 
Treasury discounting component and the risk com-
ponent of a direct loan, loan guarantee, or financial 
investment or a modification thereof. 
‘‘(B) The Treasury discounting component shall 
be the estimated long-term cost to the Government 
of a direct loan, loan guarantee, or financial invest-
ment or modification thereof, calculated on a net 
present value basis, excluding administrative costs 
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and any incidental effects on governmental receipts 
or outlays. 
‘‘(C) The risk component shall be an amount 
equal to the difference between— 
‘‘(i) the estimated long-term cost to the 
Government of a direct loan, loan guarantee, or 
financial investment or modification thereof, es-
timated on a fair value basis, applying the 
guidelines set forth by the Financial Accounting 
Standards Board in Financial Accounting 
Standards #157, or a successor thereto, exclud-
ing administrative costs and any incidental ef-
fects on governmental receipts or outlays; and 
‘‘(ii) the Treasury discounting component 
of such direct loan, loan guarantee, or financial 
investment or modification thereof. 
‘‘(D) The Treasury discounting component of a 
direct loan shall be the net present value, at the time 
when the direct loan is disbursed, of the following 
estimated cash flows: 
‘‘(i) Loan disbursements. 
‘‘(ii) Repayments of principal. 
‘‘(iii) Essential preservation expenses, pay-
ments of interest and other payments by or to 
the Government over the life of the loan after 
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‘‘(H) In estimating Treasury discounting com-
ponents, the discount rate shall be the average inter-
est rate on marketable Treasury securities of similar 
duration to the cash flows of the direct loan or loan 
guarantee for which the estimate is being made. 
‘‘(I) When funds are obligated for a direct loan 
or loan guarantee, the estimated cost shall be based 
on the current assumptions, adjusted to incorporate 
the terms of the loan contract, for the fiscal year in 
which the funds are obligated. 
‘‘(8) The term ‘program account’ means the 
budget account into which an appropriation to cover 
the cost of a direct loan, loan guarantee, or financial 
investment program is made and from which such 
cost is disbursed to the financing account. 
‘‘(9) The term ‘financing account’ means the 
nonbudget account or accounts associated with each 
program account which holds balances, receives the 
cost payment from the program account, and also 
includes all other cash flows to and from the Gov-
ernment resulting from direct loan obligations or 
loan guarantee commitments made on or after Octo-
ber 1, 1991, or financial investment commitments 
made on or after October 1, 2014. 
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‘‘(10) The term ‘liquidating account’ means the 
budget account that includes all cash flows to and 
from the Government resulting from direct loan obli-
gations or loan guarantee commitments made prior 
to October 1, 1991. These accounts shall be shown 
in the budget on a cash basis. 
‘‘(11) The term ‘modification’ means any Gov-
ernment action that alters the estimated cost of an 
outstanding direct loan (or direct loan obligation), 
an outstanding loan guarantee (or loan guarantee 
commitment), or outstanding financial investment 
(or financial investment commitment) from the cur-
rent estimate of cash flows. This includes the sale of 
loan assets, with or without recourse, and the pur-
chase of guaranteed loans (or direct loan obliga-
tions), loan guarantees (or loan guarantee commit-
ments), financial investments (or financial invest-
ment commitments) such as a change in collection 
procedures. 
‘‘(12) The term ‘current’ has the same meaning 
as in section 250(c)(9) of the Balanced Budget and 
Emergency Deficit Control Act of 1985. 
‘‘(13) The term ‘Director’ means the Director 
of the Office of Management and Budget. 
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‘‘(14) The term ‘administrative costs’ means 
costs related to program management activities, but 
does not include essential preservation expenses. 
‘‘(15) The term ‘essential preservation ex-
penses’ means servicing and other costs that are es-
sential to preserve the value of loan assets or collat-
eral. 
‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 
REVIEW. 
‘‘(a) IN GENERAL.—For the executive branch, the 
Director shall be responsible for coordinating the esti-
mates required by this title. The Director shall consult 
with the agencies that administer direct loan or loan guar-
antee, or financial investment programs. 
‘‘(b) DELEGATION.—The Director may delegate to 
agencies authority to make estimates of costs. The delega-
tion of authority shall be based upon written guidelines, 
regulations, or criteria consistent with the definitions in 
this title. 
‘‘(c) COORDINATION WITH
THE CONGRESSIONAL 
BUDGET OFFICE.—In developing estimation guidelines, 
regulations, or criteria to be used by Federal agencies, the 
Director shall consult with the Director of the Congres-
sional Budget Office. 
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‘‘(d) IMPROVING COST ESTIMATES.—The Director 
and the Director of the Congressional Budget Office shall 
coordinate the development of more accurate data on his-
torical performance and prospective risk of direct loan, 
loan guarantee, and financial investment programs. They 
shall annually review the performance of outstanding di-
rect loans, loan guarantees, and financial investment to 
improve estimates of costs. The Office of Management and 
Budget and the Congressional Budget Office shall have 
access to all agency data that may facilitate the develop-
ment and improvement of estimates of costs. 
‘‘(e) HISTORICAL CREDIT PROGRAMS COSTS.—The 
Director shall review, to the extent possible, historical data 
and develop the best possible estimates of adjustments 
that would convert aggregate historical budget data to 
credit reform accounting. 
‘‘SEC. 504. BUDGETARY TREATMENT. 
‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 
year 1992, the President’s budget shall reflect the Treas-
ury discounting component of direct loan and loan guar-
antee programs. Beginning with fiscal year 2015, the 
President’s budget shall reflect the costs of direct loan, 
loan guarantee, and financial investment programs. The 
budget shall also include the planned level of new direct 
loan obligations, loan guarantee commitments, or financial 
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investment commitments associated with each appropria-
tions request. 
‘‘(b) APPROPRIATIONS REQUIRED.—Notwithstanding 
any other provision of law, new direct loan obligations may 
be incurred and new loan guarantee commitments may be 
made of fiscal year 1992 and thereafter and new financial 
investment commitments may be made for fiscal year 
2015 and thereafter only to the extent that— 
‘‘(1) new budget authority to cover their costs 
is provided in advance in an appropriations Act; 
‘‘(2) a limitation on the use of funds otherwise 
available for the cost of a direct loan, loan guar-
antee, or financial investment program has been pro-
vided in advance in an appropriations Act; or 
‘‘(3) authority is otherwise provided in appro-
priation Acts. 
‘‘(c) EXEMPTION
FOR MANDATORY PROGRAMS.— 
Subsections (b) and (e) shall not apply to a direct loan 
or loan guarantee program that— 
‘‘(1) constitutes an entitlement (such as the 
guaranteed student loan program or the veteran’s 
home loan guaranty program); or 
‘‘(2) all existing credit programs of the Com-
modity Credit Corporation on the date of enactment 
of this title. 
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‘‘(d) BUDGET ACCOUNTING.— 
‘‘(1) The authority to incur new direct loan ob-
ligations, make new loan guarantee commitments, 
make new financial investment commitments, or 
modify outstanding direct loans (or direct loan obli-
gations), loan guarantees (or loan guarantee com-
mitments), financial investments (or financial invest-
ment commitments) shall constitute new budget au-
thority in an amount equal to the cost of the direct 
loan or loan guarantee in the fiscal year in which 
definite authority becomes available or indefinite au-
thority is used. Such budget authority shall con-
stitute an obligation of the program account to pay 
to the financing account. 
‘‘(2) The outlays resulting from new budget au-
thority for the cost of direct loans, loan guarantees, 
or financial investment described in paragraph (1) 
shall be paid from the program account into the fi-
nancing account and recorded in the fiscal year in 
which the direct loan, the guaranteed loan, or finan-
cial investment is disbursed or its costs altered. 
‘‘(3) All collections and payments of the financ-
ing accounts shall be a means of financing. 
‘‘(e) MODIFICATIONS.—An outstanding direct loan 
(or direct loan obligation), loan guarantee (or loan guar-
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antee commitment), or financial investment (or financial 
investment commitment) shall not be modified in a man-
ner that increases its costs unless budget authority for the 
additional cost has been provided in advance in an appro-
priations Act. 
‘‘(f) RE-ESTIMATES.—When the estimated cost for a 
group of direct loans, loan guarantees, or financial invest-
ments for a given program made in a single fiscal year 
is re-estimated in a subsequent year, the difference be-
tween the re-estimated cost and the previous cost estimate 
shall be displayed as a distinct and separately identified 
subaccount in the program account as a change in pro-
gram costs and a change in net interest. There is hereby 
provided permanent indefinite authority for these re-esti-
mates. 
‘‘(g) ADMINISTRATIVE EXPENSES.—All funding for 
an agency’s administrative costs associated with a direct 
loan, loan guarantee, or financial investment program 
shall be displayed as distinct and separately identified sub-
accounts within the same budget account as the program’s 
cost. 
‘‘SEC. 505. AUTHORIZATIONS. 
‘‘(a) AUTHORIZATION
OF
APPROPRIATIONS
FOR 
COSTS.—There are authorized to be appropriated to each 
Federal agency authorized to make direct loan obligations, 
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loan guarantee commitments, or financial investment com-
mitments such sums as may be necessary to pay the cost 
associated with such direct loan obligations, loan guar-
antee commitments, or financial investment commitments. 
‘‘(b) AUTHORIZATION FOR FINANCING ACCOUNTS.— 
In order to implement the accounting required by this 
title, the President is authorized to establish such non- 
budgetary accounts as may be appropriate. 
‘‘(c) TREASURY TRANSACTIONS WITH THE FINANC-
ING ACCOUNTS.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury shall borrow from, receive from, lend to, or 
pay to the financing accounts such amounts as may 
be appropriate. The Secretary of the Treasury may 
prescribe forms and denominations, maturities, and 
terms and conditions for the transactions described 
in the preceding sentence, except that the rate of in-
terest charged by the Secretary on lending to financ-
ing accounts (including amounts treated as lending 
to financing accounts by the Federal Financing 
Bank (hereinafter in this subsection referred to as 
the ‘Bank’) pursuant to section 405(b)) and the rate 
of interest paid to financing accounts on uninvested 
balances in financing accounts shall be the same as 
the rate determined pursuant to section 502(7)(H). 
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‘‘(2) LOANS.—For guaranteed loans financed 
by the Bank and treated as direct loans by a Fed-
eral agency pursuant to section 406(b)(1), any fee 
or interest surcharge (the amount by which the in-
terest rate charged exceeds the rate determined pur-
suant to section 502(7)(H) that the Bank charges to 
a private borrower pursuant to section 6(c) of the 
Federal Financing Bank Act of 1973 shall be con-
sidered a cash flow to the Government for the pur-
poses of determining the cost of the direct loan pur-
suant to section 502(7). All such amounts shall be 
credited to the appropriate financing account. 
‘‘(3) REIMBURSEMENT.—The Bank is author-
ized to require reimbursement from a Federal agen-
cy to cover the administrative expenses of the Bank 
that are attributable to the direct loans financed for 
that agency. All such payments by an agency shall 
be considered administrative expenses subject to sec-
tion 504(g). This subsection shall apply to trans-
actions related to direct loan obligations or loan 
guarantee commitments made on or after October 1, 
1991. 
‘‘(4) AUTHORITY.—The authorities provided in 
this subsection shall not be construed to supersede 
or override the authority of the head of a Federal 
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agency to administer and operate a direct loan or 
loan guarantee program. 
‘‘(5) TITLE 31.—All of the transactions pro-
vided in the subsection shall be subject to the provi-
sions of subchapter II of chapter 15 of title 31, 
United States Code. 
‘‘(6) TREATMENT OF CASH BALANCES.—Cash 
balances of the financing accounts in excess of cur-
rent requirements shall be maintained in a form of 
uninvested funds and the Secretary of the Treasury 
shall pay interest on these funds. The Secretary of 
the Treasury shall charge (or pay if the amount is 
negative) financing accounts an amount equal to the 
risk component for a direct loan, loan guarantee, or 
financial investment or modification thereof. Such 
amount received by the Secretary of the Treasury 
shall be a means of financing and shall not be con-
sidered a cash flow of the Government for the pur-
poses of section 502(7). 
‘‘(d) 
AUTHORIZATION
FOR
LIQUIDATING
AC-
COUNTS.—(1) Amounts in liquidating accounts shall be 
available only for payments resulting from direct loan obli-
gations or loan guarantee commitments made prior to Oc-
tober 1, 1991, for— 
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‘‘(A) interest payments and principal repay-
ments to the Treasury or the Federal Financing 
Bank for amounts borrowed; 
‘‘(B) disbursements of loans; 
‘‘(C) default and other guarantee claim pay-
ments; 
‘‘(D) interest supplement payments; 
‘‘(E) payments for the costs of foreclosing, 
managing, and selling collateral that are capitalized 
or routinely deducted from the proceeds of sales; 
‘‘(F) payments to financing accounts when re-
quired for modifications; 
‘‘(G) administrative costs and essential preser-
vation expenses, if— 
‘‘(i) amounts credited to the liquidating ac-
count would have been available for Administra-
tive costs and essential preservation expenses 
under a provision of law in effect prior to Octo-
ber 1, 1991; and 
‘‘(ii) no direct loan obligation or loan guar-
antee commitment has been made, or any modi-
fication of a direct loan or loan guarantee has 
been made, since September 30, 1991; or 
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‘‘(H) such other payments as are necessary for 
the liquidation of such direct loan obligations and 
loan guarantee commitments. 
‘‘(2) Amounts credited to liquidating accounts in any 
year shall be available only for payments required in that 
year. Any unobligated balances in liquidating accounts at 
the end of a fiscal year shall be transferred to miscella-
neous receipts as soon as practicable after the end of the 
fiscal year. 
‘‘(3) If funds in liquidating accounts are insufficient 
to satisfy obligations and commitments of such accounts, 
there is hereby provided permanent, indefinite authority 
to make any payments required to be made on such obliga-
tions and commitments. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS FOR IM-
PLEMENTATION EXPENSES.—There are authorized to be 
appropriated to existing accounts such sums as may be 
necessary for salaries and expenses to carry out the re-
sponsibilities under this title. 
‘‘(f) REINSURANCE.—Nothing in this title shall be 
construed as authorizing or requiring the purchase of in-
surance or reinsurance on a direct loan or loan guarantee 
from private insurers. If any such reinsurance for a direct 
loan or loan guarantee is authorized, the cost of such in-
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surance and any recoveries to the Government shall be in-
cluded in the calculation of the cost. 
‘‘(g) ELIGIBILITY AND ASSISTANCE.—Nothing in this 
title shall be construed to change the authority or the re-
sponsibility of a Federal agency to determine the terms 
and conditions of eligibility for, or the amount of assist-
ance provided by a direct loan or a loan guarantee. 
‘‘SEC. 506. TREATMENT OF DEPOSIT INSURANCE AND AGEN-
CIES AND OTHER INSURANCE PROGRAMS. 
‘‘This title shall not apply to the credit or insurance 
activities of the Federal Deposit Insurance Corporation, 
National Credit Union Administration, Resolution Trust 
Corporation, Pension Benefit Guaranty Corporation, Na-
tional Flood Insurance, National Insurance Development 
Fund, Crop Insurance, or Tennessee Valley Authority. 
‘‘SEC. 507. EFFECT ON OTHER LAWS. 
‘‘(a) EFFECT ON OTHER LAWS.—This title shall su-
persede, modify, or repeal any provision of law enacted 
prior to the date of enactment of this title to the extent 
such provision is inconsistent with this title. Nothing in 
this title shall be construed to establish a credit limitation 
on any Federal loan or loan guarantee program. 
‘‘(b) CREDITING OF COLLECTIONS.—Collections re-
sulting from direct loans obligated or loan guarantees 
committed prior to October 1, 1991, shall be credited to 
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the liquidating accounts of Federal agencies. Amounts so 
credited shall be available, to the same extent that they 
were available prior to the date of enactment of this title, 
to liquidate obligations arising from such direct loans obli-
gated or loan guarantees committed prior to October 1, 
1991, including repayment of any obligations held by the 
Secretary of the Treasury or the Federal Financing Bank. 
The unobligated balances of such accounts that are in ex-
cess of current needs shall be transferred to the general 
fund of the Treasury. Such transfers shall be made from 
time to time but, at least once each year.’’. 
SEC. 5. NO CHANGES IN MANDATORY PROGRAMS IN AP-
PROPRIATION BILLS. 
Section 302(f) of the Congressional Budget Act of 
1974 is amended to read as follows: 
‘‘(f) LEGISLATION SUBJECT TO POINT OF ORDER.— 
‘‘(1) IN THE HOUSE OF REPRESENTATIVES.— 
(A) After the Congress has completed action on a 
concurrent resolution on the budget for a fiscal year, 
it shall not be in order in the House of Representa-
tives to consider any bill, joint resolution, or amend-
ment providing new budget authority or outlays for 
any fiscal year, or any conference report on any such 
bill or joint resolution, if the enactment of such bill 
or resolution as reported, the adoption and enact-
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ment of such amendment, or the enactment of such 
bill or resolution in the form recommended in such 
conference report, would cause— 
‘‘(i) the applicable allocation of new budget 
authority or outlays made under subsection (a) 
or (b) for the first fiscal year or the total of fis-
cal years to be exceeded, or 
‘‘(ii) appropriations legislation to contain a 
provision that would have been estimated as af-
fecting direct spending or receipts under section 
252 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 were it included in 
legislation other than appropriations legislation, 
if such provision does not result in net outlay 
savings over the total of the period of the cur-
rent year, the budget year, and all fiscal years 
covered under the most recently adopted con-
current resolution on the budget. 
‘‘(B) In the House of Representatives, it shall 
not be in order to consider a rule or order that 
waives the application of subparagraph (A). As dis-
position of a point of order under this subparagraph, 
the Chair shall put the question of consideration 
with respect to the rule or order. The question of 
consideration shall be debatable for 10 minutes by 
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the Member initiating the point of order and for 10 
minutes by an opponent, but shall otherwise be de-
cided without intervening motion except one that the 
House adjourn. 
‘‘(2) IN THE SENATE.—After a concurrent reso-
lution on the budget is agreed to, it shall not be in 
order in the Senate to consider any bill or joint reso-
lution, amendment, motion, or conference report 
that— 
‘‘(A) in the case of any committee except 
the Committee on Appropriations, would cause 
the applicable allocation of new budget author-
ity or outlays under subsection (a) for the first 
fiscal year or the total of fiscal years to be ex-
ceeded; or 
‘‘(B) in the case of the Committee on Ap-
propriations would— 
‘‘(i) cause the applicable suballocation 
of new budget authority or outlays under 
subsection (b) to be exceeded; or 
‘‘(ii) includes one or more provisions 
that would have been estimated as affect-
ing direct spending or receipts under sec-
tion 252 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 
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were they included in legislation other than 
appropriations legislation, if such provision 
does not result in net outlay savings over 
the total of the period of the current year, 
the budget year, and all fiscal years cov-
ered under the most recently adopted con-
current resolution on the budget.’’. 
SEC. 6. DON’T COUNT RESCISSIONS THAT DON’T SAVE 
MONEY. 
Section 312(a) of the Congressional Budget Act of 
1974 (2 U.S.C. 643(a)) is amended— 
(1) by striking ‘‘For purposes’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—For purposes;’’; and 
(2) by adding at the end the following: 
‘‘(2) EXCLUSION.—In making determinations 
under paragraph (1), the committee shall not count 
rescissions of budget authority that do not result in 
outlay savings over the period of fiscal years covered 
by the concurrent resolution on the budget.’’. 
SEC. 7. PROHIBITION ON STEP INCREASES FOR FEDERAL 
EMPLOYEE COMPENSATION. 
(a) PERIODIC STEP INCREASES.—Notwithstanding 
any other provision of law, no periodic step increase under 
section 5335 of title 5, United States Code, which (but 
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for this subsection) would otherwise take effect during the 
period beginning on the date of enactment of this Act and 
ending on December 31, 2012, shall be made. 
(b) ADDITIONAL STEP INCREASES.—The head of an 
agency may not grant additional step increases under sec-
tion 5336 of title 5, United States Code, during the period 
beginning on the date of enactment of this Act and ending 
on December 31, 2012. 
SEC. 8. POINT OF ORDER AGAINST ADVANCE APPROPRIA-
TIONS. 
(a) IN GENERAL.— 
(1) POINT OF ORDER.—Except as provided in 
subsection (b), it shall not be in order in the House 
of Representatives or the Senate to consider any bill, 
joint resolution, motion, amendment, or conference 
report that would provide an advance appropriation. 
(2) DEFINITION.—In this section, the term 
‘‘advance appropriation’’ means any new budget au-
thority provided in a bill or joint resolution making 
appropriations for fiscal year 2012 that first be-
comes available for any fiscal year after 2012, or 
any new budget authority provided in a bill or joint 
resolution making general appropriations or con-
tinuing appropriations for each of the budget years 
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2012 through 2022, that first becomes available for 
any fiscal year after the budget year. 
(b) EXCEPTIONS.—Advance appropriations may be 
provided as follows: 
(1) For fiscal years 2013 through 2022 in an 
aggregate amount not to exceed $28,852,000,000 in 
new budget authority in each year for the following 
programs, projects, activities, or accounts: 
(A) Employment and Training Administra-
tion. 
(B) Job Corps. 
(C) Education for the Disadvantaged. 
(D) School Improvement. 
(E) Children and Family Services (Head 
Start). 
(F) Special Education. 
(G) Career, Technical, and Adult Edu-
cation. 
(H) Financial Services and General Gov-
ernment: Payment to Postal Service. 
(I) Transportation, Housing and Urban 
Development: Tenant-based Rental Assistance 
Project-based Rental Assistance. 
(2) For the Corporation for Public Broad-
casting. 
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(3) For the Department of Veterans Affairs for 
the Medical Services, Medical Support and Compli-
ance, and Medical Facilities accounts of the Vet-
erans Health Administration. 
(c) SUPERMAJORITY WAIVER AND APPEAL.— 
(1) WAIVER.—In the House of Representatives 
or the Senate, subsection (a)(1) may be waived or 
suspended only by an affirmative vote of three-fifths 
of the Members, duly chosen and sworn. 
(2) APPEAL.—In the Senate, an affirmative 
vote of three-fifths of the Members of the Senate, 
duly chosen and sworn, shall be required to sustain 
an appeal of the ruling of the Chair on a point of 
order raised under subsection (a). 
(d) FORM OF POINT OF ORDER.—A point of order 
under subsection (a) may be raised by any Member as pro-
vided in section 313(e) of the Congressional Budget Act 
of 1974. 
(e) RULES OR ORDERS IN THE HOUSE OF REP-
RESENTATIVES.—In the House of Representatives, it shall 
not be in order to consider a rule or order that waives 
the application of subsection (a)(1). As disposition of a 
point of order under this subsection, the Chair shall put 
the question of consideration with respect to the rule or 
order. The question of consideration shall be debatable for 
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10 minutes by the Member initiating the point of order 
and for 10 minutes by an opponent, but shall otherwise 
be decided without intervening motion except one that the 
House adjourn. 
(f) CONFERENCE REPORTS.—When the House of 
Representatives or the Senate is considering a conference 
report on, or an amendment between the Houses in rela-
tion to, a bill, upon a point of order being made by any 
Member pursuant to this section, and such point of order 
being sustained, such material contained in such con-
ference report shall be deemed stricken, and the applicable 
House shall proceed to consider the question of whether 
it shall recede from its amendment and concur with a fur-
ther amendment, or concur in the amendment of the other 
House with a further amendment, as the case may be, 
which further amendment shall consist of only that portion 
of the conference report or amendment, as the case may 
be, not so stricken. Any such motion in the House of Rep-
resentatives or Senate shall be debatable. In any case in 
which such point of order is sustained against a conference 
report (or House or Senate amendment, as applicable, de-
rived from such conference report by operation of this sub-
section), no further amendment shall be in order. 
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SEC. 9. PROHIBIT TIMING SHIFTS. 
(a) IN GENERAL.—In the House of Representatives 
or the Senate, for purposes of enforcement of points of 
order established under the Congressional Budget Act of 
1974, S. Con. Res. 21 (110th Congress; Fiscal Year 2008 
Budget Resolution), S. Con. Res. 70 (110th Congress; 
Fiscal Year 2009 Budget Resolution), S. Con. Res. 13 
(111th Congress; Fiscal Year 2010 Budget Resolution), 
and subsequent concurrent resolutions on the budget, a 
provision in any bill, resolution, amendment, motion, 
amendment between houses, or conference report that 
shifts outlays or revenues from one year to another by a 
date change to act as an offset for other provisions that 
increase the deficit for a time period shall not count. 
(b) RULES OR ORDERS IN THE HOUSE OF REP-
RESENTATIVES.—In the House of Representatives, it shall 
not be in order to consider a rule or order that waives 
the application of subsection (a). As disposition of a point 
of order under this subsection, the Chair shall put the 
question of consideration with respect to the rule or order. 
The question of consideration shall be debatable for 10 
minutes by the Member initiating the point of order and 
for 10 minutes by an opponent, but shall otherwise be de-
cided without intervening motion except one that the 
House adjourn. 
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SEC. 10. BUDGET SCORING RULE RELATING TO TRANSFERS 
FROM THE GENERAL FUND OF THE TREAS-
URY TO THE HIGHWAY TRUST FUND THAT IN-
CREASE PUBLIC INDEBTEDNESS. 
(a) IN GENERAL.—In the House of Representatives 
or the Senate, for purposes of enforcement of points of 
order established under the Congressional Budget Act of 
1974, S. Con. Res. 21 (110th Congress; Fiscal Year 2008 
Budget Resolution), S. Con. Res. 70 (110th Congress; 
Fiscal Year 2009 Budget Resolution), S. Con. Res. 13 
(111th Congress; Fiscal Year 2010 Budget Resolution), 
and subsequent concurrent resolutions on the budget, a 
bill, resolution, amendment, motion, amendment between 
houses, or conference report that transfers funds from the 
general fund of the Treasury to the Highway Trust Fund 
and that increases the level of indebtedness that is subject 
to the current applicable statutory public debt limit shall 
be counted by the chairman of the Committee on the 
Budget of the House of Representatives or the Senate, as 
applicable, as new budget authority and outlays equal to 
the amount of the transfer in the fiscal year the transfer 
occurs. 
(b) RULES OR ORDERS IN THE HOUSE OF REP-
RESENTATIVES.—In the House of Representatives, it shall 
not be in order to consider a rule or order that waives 
the application of subsection (a). As disposition of a point 
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of order under this subsection, the Chair shall put the 
question of consideration with respect to the rule or order. 
The question of consideration shall be debatable for 10 
minutes by the Member initiating the point of order and 
for 10 minutes by an opponent, but shall otherwise be de-
cided without intervening motion except one that the 
House adjourn. 
Æ 
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