TITLE I—AMENDMENTS TO THE
CONGRESSIONAL 
BUDGET
AND 
IMPOUNDMENT 
CON-
TROL ACT OF 1974
SEC. 101. AMENDMENTS TO SECTION 3.
Section 3 of the Congressional Budget and Impound-
ment Control Act of 1974 (2 U.S.C. 622) is amended—
(1) in paragraph (2)(A), by striking ‘‘and’’ at
the end of clause (iii), by striking the period and in-
serting ‘‘; and’’ at the end of clause (iv), and by
adding at the end the following:
‘‘(v) entitlement authority and the
food stamp program.’’; and
(2) in paragraph (9), by inserting ‘‘, but such
term does not include salary or basic pay funded
through an appropriation Act’’ before the period.
SEC. 102. AMENDMENTS TO SECTION 201.
(a) TERM OF OFFICE.—The first sentence of section
201(a)(3) of the Congressional Budget Act of 1974 is
amended to read as follows: ‘‘The term of office of the
Director shall be four years and shall expire on January
3 of the year preceding a Presidential election.’’.
(b) REDESIGNATION
OF EXECUTED PROVISION.—
Section 201 of the Congressional Budget Act of 1974 is
amended by redesignating subsection (g) (relating to reve-
nue estimates) as subsection (f).
SEC. 103. AMENDMENTS TO SECTION 202.
(a) ASSISTANCE
TO BUDGET COMMITTEES.—The
first sentence of section 202(a) of the Congressional
Budget Act of 1974 is amended by inserting ‘‘primary’’
before ‘‘duty’’.
(b) ELIMINATION OF EXECUTED PROVISION.—Sec-
tion 202 of the Congressional Budget Act of 1974 is
amended by striking subsection (e) and by redesignating
subsections (f), (g), and (h) as subsections (e), (f), and
(g), respectively.
SEC. 104. AMENDMENT TO SECTION 300.
The item relating to February 25 in the timetable
set forth in section 300 of the Congressional Budget Act
of 1974 is amended by striking ‘‘February 25’’ and insert-
ing ‘‘Within 6 weeks after President submits budget’’.
SEC. 105. AMENDMENTS TO SECTION 301.
(a) TERMS
OF BUDGET RESOLUTIONS.—Section
301(a) of the Congressional Budget Act of 1974 is amend-
ed by striking ‘‘, and planning levels for each of the two
ensuing fiscal years,’’ and inserting ‘‘and for at least each
of the 4 ensuing fiscal years’’.
(b) CONTENTS OF BUDGET RESOLUTIONS.—Para-
graphs (1) and (4) of section 301(a) of the Congressional
Budget Act of 1974 are amended by striking ‘‘, budget
outlays, direct loan obligations, and primary loan guaran-
tee commitments’’ each place it appears and inserting
‘‘and budget outlays’’.
(c) ADDITIONAL MATTERS.—Section 301(b) of the
Congressional Budget Act of 1974 is amended by amend-
ing paragraph (7) to read as follows—
‘‘(7) set forth pay-as-you-go procedures in the
Senate whereby committee allocations, aggregates,
and other levels can be revised for legislation within
a committee’s jurisdiction if such legislation would
not increase the deficit for the first year covered by
the resolution and will not increase the deficit for
the period of 5 fiscal years covered by the resolu-
tion;’’.
(d) VIEWS AND ESTIMATES.—The first sentence of
section 301(d) of the Congressional Budget Act of 1974
is amended by inserting ‘‘or at such time as may be re-
quested by the Committee on the Budget,’’ after ‘‘Code,’’.
(e) HEARINGS AND REPORT.—Section 301(e)(2) of
the Congressional Budget Act of 1974 is amended by
striking ‘‘total direct loan obligations, total primary loan
guarantee commitments,’’.
(f) SOCIAL SECURITY CORRECTIONS.—Section 301(i)
of the Congressional Budget Act of 1974 is amended by—
(1) inserting ‘‘SOCIAL
SECURITY
POINT
OF
ORDER.—’’ after ‘‘(i)’’; and
(2) striking ‘‘as reported to the Senate’’ and in-
serting ‘‘(or amendment, motion, or conference re-
port on such a resolution)’’.
SEC. 106. AMENDMENTS TO SECTION 302.
(a) ALLOCATIONS
AND
SUBALLOCATIONS.—Sub-
sections (a) and (b) of section 302 of the Congressional
Budget Act of 1974 are amended to read as follows:
‘‘(a) COMMITTEE SPENDING ALLOCATIONS.—
‘‘(1) ALLOCATION
AMONG
COMMITTEES.—The
joint explanatory statement accompanying a con-
ference report on a budget resolution shall include
allocations, consistent with the resolution rec-
ommended in the conference report, of the appro-
priate levels (for each fiscal year covered by that res-
olution and a total for all such years, except in the
case of the Committee on Appropriations only for
the first such fiscal year) of—
‘‘(A) total new budget authority;
‘‘(B) total outlays; and
‘‘(C) in the Senate, social security outlays;
among each committee of the House of Representa-
tives or the Senate that has jurisdiction over legisla-
tion providing or creating such amounts.
‘‘(2) NO DOUBLE COUNTING.—In the House of
Representatives, any item allocated to one committee
may not be allocated to another such committee.
‘‘(3) FURTHER DIVISION OF AMOUNTS.—In the
House of Representatives, the amounts allocated to
each committee for each fiscal year, other than the
Committee on Appropriations, shall be further di-
vided between amounts provided or required by law
on the date of filing of that conference report and
amounts not so provided or required. The amounts
allocated to the Committee on Appropriations for
each fiscal year shall be further divided between dis-
cretionary and mandatory amounts or programs, as
appropriate.
‘‘(4) AMOUNTS NOT ALLOCATED.—(A) In the
House of Representatives, if a committee receives no
allocation of new budget authority or outlays, that
committee shall be deemed to have received an allo-
cation equal to zero for new budget authority or out-
lays.
‘‘(B) In the Senate, if a committee receives no
allocation of new budget authority, outlays, or social
security outlays, that committee shall be deemed to
have received an allocation equal to zero for new
budget authority, outlays, or social security outlays.
‘‘(5) SOCIAL SECURITY LEVELS IN THE SEN-
ATE.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(C), social security surpluses equal the
excess of social security revenues over social se-
curity outlays in a fiscal year or years with
such an excess and social security deficits equal
the excess of social security outlays over social
security revenues in a fiscal year or years with
such an excess.
‘‘(B) TAX TREATMENT.—For purposes of
paragraph (1)(C), no provision of any legisla-
tion involving a change in chapter 1 of the In-
ternal Revenue Code of 1986 shall be treated as
affecting the amount of social security revenues
or outlays unless such provision changes the in-
come tax treatment of social security benefits.
‘‘(6) ADJUSTING
ALLOCATION
OF
DISCRE-
TIONARY SPENDING IN THE HOUSE OF REPRESENT-
ATIVES.—(A) If a concurrent resolution on the
budget is not adopted by April 15, the chairman of
the Committee on the Budget of the House of Rep-
resentatives shall submit to the House, as soon as
practicable, an allocation under paragraph (1) to the
Committee on Appropriations consistent with the
discretionary spending limits contained in the most
recently agreed to concurrent resolution on the
budget for the second fiscal year covered by that res-
olution.
‘‘(B) As soon as practicable after an allocation
under paragraph (1) is submitted under this section,
the Committee on Appropriations shall make sub-
allocations and promptly report those suballocations
to the House of Representatives.
‘‘(b) SUBALLOCATIONS BY APPROPRIATION COMMIT-
TEES.—As soon as practicable after a concurrent resolu-
tion on the budget is agreed to, the Committee on Appro-
priations of each House (after consulting with the Com-
mittee on Appropriations of the other House) shall sub-
allocate each amount allocated to it for the budget year
under subsection (a) among its subcommittees. Each Com-
mittee on Appropriations shall promptly report to its
House suballocations made or revised under this para-
graph.’’.
(b) POINT OF ORDER.—Section 302(c) of the Con-
gressional Budget Act of 1974 is amended to read as fol-
lows:
‘‘(c) POINT OF ORDER.—After the Committee on Ap-
propriations has received an allocation pursuant to sub-
section (a) for a fiscal year, it shall not be in order in
the House of Representatives or the Senate to consider
any bill, joint resolution, amendment, motion, or con-
ference report providing new budget authority for that fis-
cal year within the jurisdiction of that committee, until
such committee makes the suballocations required by sub-
section (b).’’.
(c) ENFORCEMENT OF POINT OF ORDER.—(1) Sec-
tion 302(f)(1) of the Congressional Budget Act of 1974
is amended by—
(A) striking ‘‘providing new budget authority
for such fiscal year or new entitlement authority ef-
fective during such fiscal year’’ and inserting ‘‘pro-
viding new budget authority for any fiscal year cov-
ered by the concurrent resolution’’;
(B) striking ‘‘appropriate allocation made pur-
suant to subsection (b) for such fiscal year’’ and in-
serting ‘‘appropriate allocation made under sub-
section (a) or any suballocation made under sub-
section (b), as applicable, for the fiscal year of the
concurrent resolution or for the total of all fiscal
years covered by the concurrent resolution’’; and
(C) striking ‘‘of new discretionary budget au-
thority or new entitlement authority to be exceeded’’
and inserting ‘‘of new discretionary budget authority
to be exceeded’’.
(2) Section 302(f)(2) of the Congressional Budget
Act of 1974 is amended to read as follows:
‘‘(2) ENFORCEMENT OF COMMITTEE ALLOCA-
TIONS
AND
SUBALLOCATIONS
IN
THE SENATE.—
After a concurrent resolution on the budget is
agreed to, it shall not be in order in the Senate to
consider any bill, joint resolution, amendment, mo-
tion, or conference report that would cause—
‘‘(A) in the case of any committee except
the Committee on Appropriations, the appro-
priate allocation of new budget authority or
outlays under subsection (a) to be exceeded; or
‘‘(B) in the case of the Committee on Ap-
propriations, the appropriate suballocation of
new budget authority or outlays under sub-
section (b) to be exceeded.’’.
(d) SEPARATE ALLOCATIONS.—Section 302(g) of the
Congressional Budget Act of 1974 is amended to read as
follows:
‘‘(g) SEPARATE ALLOCATIONS.—The Committees on
Appropriations and the Budget shall make separate alloca-
tions and suballocations under this section consistent with
the categories in section 251(c) of the Balanced Budget
and Emergency Deficit Control Act of 1985.’’
SEC. 107. AMENDMENTS TO SECTION 303.
(a) IN GENERAL.—Section 303 of the Congressional
Budget Act of 1974 is amended to read as follows:
‘‘CONCURRENT RESOLUTION ON THE BUDGET MUST BE
ADOPTED
BEFORE
LEGISLATION
PROVIDING
NEW
BUDGET
AUTHORITY, NEW
SPENDING
AUTHORITY,
OR CHANGES IN REVENUES OR THE PUBLIC DEBT
LIMIT IS CONSIDERED
‘‘SEC. 303. (a) IN GENERAL.—It shall not be in order
in either the House of Representatives or the Senate to
consider any bill, joint resolution, amendment, motion, or
conference report as reported to the House or Senate
which provides—
‘‘(1) new budget authority for a fiscal year;
‘‘(2) an increase or decrease in revenues to be-
come effective during a fiscal year;
‘‘(3) an increase or decrease in the public debt
limit to become effective during a fiscal year;
‘‘(4) in the Senate only, new spending authority
(as defined in section 401(c)(2)) for a fiscal year; or
‘‘(5) in the Senate only, outlays,
until the concurrent resolution on the budget for such fis-
cal year (or, in the Senate, a concurrent resolution on the
budget covering such fiscal year) has been agreed to pur-
suant to section 301.
‘‘(b) EXCEPTIONS.—(1) In the House of Representa-
tives, subsection (a) does not apply to any bill or resolu-
tion—
‘‘(A) providing advance discretionary new budg-
et authority which first becomes available in a fiscal
year following the fiscal year to which the concur-
rent resolution applies; or
‘‘(B) increasing or decreasing revenues which
first become effective in a fiscal year following the
fiscal year to which the concurrent resolution ap-
plies.
After May 15 of any calendar year, subsection (a) does
not apply in the House of Representatives to any general
appropriation bill, or amendment thereto, which provides
new budget authority for the fiscal year beginning in such
calendar year.
‘‘(2) In the Senate, subsection (a) does not apply to
any bill or resolution making advance appropriations for
the fiscal year to which the concurrent resolution applies
and the two succeeding fiscal years.’’.
(b) CONFORMING AMENDMENT.—The item relating
to section 303 in the table of contents set forth in section
1(b) of the Congressional Budget and Impoundment Con-
trol Act of 1974 is amended by striking ‘‘new credit au-
thority,’’.
SEC. 108. AMENDMENT TO SECTION 305.
Section 305(a)(1) of the Congressional Budget Act
of 1974 is amended by inserting ‘‘when the House is not
in session’’ after ‘‘holidays’’ each place it appears.
SEC. 109. AMENDMENTS TO SECTION 308.
Section 308 of the Congressional Budget Act of 1974
is amended—
(1)(A) in the side heading of subsection (a), by
striking ‘‘OR NEW CREDIT AUTHORITY,’’ and
by striking the first comma and inserting ‘‘OR’’;
(B) in paragraphs (1) and (2) of subsection (a),
by striking ‘‘or new credit authority,’’ each place it
appears and by striking the comma before ‘‘new
spending authority’’ each place it appears and in-
serting ‘‘or’’;
(2) in subsection (b)(1), by striking ‘‘or new
credit authority,’’ and by striking the comma before
‘‘new spending authority’’ and inserting ‘‘or’’;
(3) in subsection (c), by inserting ‘‘and’’ after
the semicolon at the end of paragraph (3), by strik-
ing ‘‘; and’’ at the end of paragraph (4) and insert-
ing a period; and by striking paragraph (5); and
(4) by inserting ‘‘joint’’ before ‘‘resolution’’
each place it appears and, in subsection (b)(1), by
inserting ‘‘joint’’ before ‘‘resolutions’’.
SEC. 110. AMENDMENTS TO SECTION 310.
Section 310 of the Congressional Budget Act of 1974
is amended by—
(1) in subsection (a)(1), by inserting ‘‘and’’
after the semicolon at the end of subparagraph (B),
by striking subparagraphs (C) and (D), and by in-
serting after subparagraph (B) the following new
subparagraph:
‘‘(C) direct spending (as defined in section
250(c)(8) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985),’’; and
(2) in subsection (c)(1)(A), by inserting ‘‘of the
absolute value’’ after ‘‘20 percent’’ each place it ap-
pears.
SEC. 111. AMENDMENTS TO SECTION 311.
Section 311 of the Congressional Budget Act of 1974
is amended to read as follows:
‘‘NEW BUDGET AUTHORITY, NEW SPENDING AUTHORITY,
AND REVENUE LEGISLATION MUST BE WITHIN AP-
PROPRIATE LEVELS
‘‘SEC. 311. (a) ENFORCEMENT OF BUDGET AGGRE-
GATES.—
‘‘(1) IN THE HOUSE OF REPRESENTATIVES.—
Except as provided by subsection (c), after the Con-
gress has completed action on a concurrent resolu-
tion on the budget for a fiscal year, it shall not be
in order in the House of Representatives to consider
any bill, joint resolution, amendment, motion, or
conference report providing new budget authority for
such fiscal year or reducing revenues for such fiscal
year, if—
‘‘(A) the enactment of such bill or resolu-
tion as reported;
‘‘(B) the adoption and enactment of such
amendment; or
‘‘(C) the enactment of such bill or resolu-
tion in the form recommended in such con-
ference report;
would cause the appropriate level of total new budg-
et authority or total budget outlays set forth in the
most recently agreed to concurrent resolution on the
budget for such fiscal year to be exceeded, or would
cause revenues to be less than the appropriate level
of total revenues set forth in such concurrent resolu-
tion such fiscal year or for the total of all fiscal
years covered by the concurrent resolution, except in
the case that a declaration of war by the Congress
is in effect.
‘‘(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, resolution,
amendment, motion, or conference report that—
‘‘(A) would cause the appropriate level of
total new budget authority or total outlays set
forth for the first fiscal year in such resolution
to be exceeded; or
‘‘(B) would cause revenues to be less than
the appropriate level of total revenues set forth
for the first fiscal year covered by such resolu-
tion or for the period including the first fiscal
year plus the following 4 fiscal years in such
resolution.
‘‘(3) ENFORCEMENT OF SOCIAL SECURITY LEV-
ELS IN THE SENATE.—After a concurrent resolution
on the budget is agreed to, it shall not be in order
in the Senate to consider any bill, resolution, amend-
ment, motion, or conference report that would cause
a decrease in social security surpluses or an increase
in social security deficits derived from the levels of
social security revenues and social security outlays
set forth for the first fiscal year covered by the reso-
lution and for the period including the first fiscal
year plus the following 4 fiscal years in such resolu-
tion.
‘‘(b) SOCIAL SECURITY LEVELS.—
‘‘(1) IN GENERAL.—For the purposes of sub-
section (a)(3), social security surpluses equal the ex-
cess of social security revenues over social security
outlays in a fiscal year or years with such an excess
and social security deficits equal the excess of social
security outlays over social security revenues in a
fiscal year or years with such an excess.
‘‘(2) TAX TREATMENT.—For the purposes of
this section, no provision of any legislation involving
a change in chapter 1 of the Internal Revenue Code
of 1986 shall be treated as affecting the amount of
social security revenues or outlays unless such provi-
sion changes the income tax treatment of social se-
curity benefits.
‘‘(c) EXCEPTION IN THE HOUSE OF REPRESENTA-
TIVES.—Subsection (a)(1) shall not apply in the House
of Representatives to any bill, resolution, or amendment
that provides new budget authority for a fiscal year or
to any conference report on any such bill or resolution,
if—
‘‘(1) the enactment of such bill or resolution as
reported;
‘‘(2) the adoption and enactment of such
amendment; or
‘‘(3) the enactment of such bill or resolution in
the form recommended in such conference report;
would not cause the appropriate allocation of new budget
authority made pursuant to section 302(a) for such fiscal
year, for the committee within whose jurisdiction such bill,
resolution, or amendment falls, to be exceeded.’’.
SEC. 112. AMENDMENT TO SECTION 312.
(a) IN GENERAL.—Section 312 of the Congressional
Budget Act of 1974 is amended to read as follows:
‘‘POINTS OF ORDER
‘‘SEC. 312. (a) BUDGET COMMITTEE DETERMINA-
TIONS.—For purposes of this title and title IV, the levels
of new budget authority, budget outlays, spending author-
ity as described in section 401(c)(2), direct spending, new
entitlement authority, and revenues for a fiscal year shall
be determined on the basis of estimates made by the Com-
mittee on the Budget of the House of Representatives or
the Senate, as the case may be.
‘‘(b) DISCRETIONARY SPENDING POINT OF ORDER IN
THE SENATE.—
‘‘(1) Except as otherwise provided in this sub-
section, it shall not be in order in the Senate to con-
sider any concurrent resolution on the budget (or
amendment, motion, or conference report on such a
resolution) that would exceed any of the discre-
tionary spending limits in section 251(c) of the Bal-
anced Budget and Emergency Deficit Control Act of
1985.
‘‘(2) This subsection shall not apply if a dec-
laration of war by the Congress is in effect or if a
joint resolution pursuant to section 258 of the Bal-
anced Budget and Emergency Deficit Control Act of
1985 has been enacted.
‘‘(c) MAXIMUM DEFICIT AMOUNT POINT OF ORDER
IN THE SENATE.—It shall not be in order in the Senate
to consider any concurrent resolution on the budget for
a fiscal year under section 301, or to consider any amend-
ment to that concurrent resolution, or to consider a con-
ference report on that concurrent resolution—
‘‘(1) if the level of total budget outlays for the
first fiscal year that is set forth in that concurrent
resolution or conference report exceeds the rec-
ommended level of Federal revenues set forth for
that year by an amount that is greater than the
maximum deficit amount, if any, specified in the
Balanced Budget and Emergency Deficit Control
Act of 1985 for such fiscal year; or
‘‘(2) if the adoption of such amendment would
result in a level of total budget outlays for that fiscal
year which exceeds the recommended level of Fed-
eral revenues for that fiscal year, by an amount that
is greater than the maximum deficit amount, if any,
specified in the Balanced Budget and Emergency
Deficit Control Act of 1985 for such fiscal year.
‘‘(d) TIMING OF POINTS OF ORDER IN THE SEN-
ATE.—A point of order under this Act may not be raised
against a bill, resolution, amendment, motion, or con-
ference report while an amendment or motion, the adop-
tion of which would remedy the violation of this Act, is
pending before the Senate.
‘‘(e) POINTS OF ORDER IN THE SENATE AGAINST
AMENDMENTS BETWEEN THE HOUSES.—Each provision
of this Act that establishes a point of order against an
amendment also establishes a point of order in the Senate
against an amendment between the Houses. If a point of
order under this Act is raised in the Senate against an
amendment between the Houses, and the Presiding Officer
sustains the point of order, the effect shall be the same
as if the Senate had disagreed to the amendment.
‘‘(f) EFFECT OF A POINT OF ORDER ON A BILL IN
THE SENATE.—In the Senate, if the Chair sustains a
point of order under this Act against a bill, the Chair shall
then send the bill to the committee of appropriate jurisdic-
tion for further consideration.’’.
(b) CONFORMING AMENDMENT.—The item relating
to section 312 in the table of contents set forth in section
1(b) of the Congressional Budget and Impoundment Con-
trol Act of 1974 is amended by striking ‘‘Effect of point’’
and inserting ‘‘Point’’.
SEC. 113. ADJUSTMENTS AND BUDGET COMMITTEE DETER-
MINATIONS.
(a) IN GENERAL.—Title III of the Congressional
Budget Act of 1974 is amended by adding at the end the
following new section:
‘‘ADJUSTMENTS
‘‘SEC. 314. (a) ADJUSTMENTS.—When—
‘‘(1)(A) the Committee on Appropriations re-
ports an appropriation measure for fiscal year 1998,
1999, 2000, 2001, or 2002 that specifies an amount
for emergencies pursuant to section 251(b)(2)(A) of
the Balanced Budget and Emergency Deficit Control
Act of 1985 or for continuing disability reviews pur-
suant to section 251(b)(2)(C) of that Act;
‘‘(B) any other committee reports emergency
legislation described in section 252(e) of that Act;
‘‘(C) the Committee on Appropriations reports
an appropriation measure for fiscal year 1998, 1999,
2000, 2001, or 2002 that includes an appropriation
with respect to clause (i) or (ii), the adjustment
shall be the amount of budget authority in the meas-
ure that is the dollar equivalent, in terms of Special
Drawing Rights, of—
‘‘(i) increases the United States quota as
part of the International Monetary Fund Elev-
enth General Review of Quotas (United States
Quota); or
‘‘(ii) increases the maximum amount avail-
able to the Secretary of the Treasury pursuant
to section 17 of the Bretton Woods Agreement
Act, as amended from time to time (New Ar-
rangements to Borrow); or
‘‘(D) the Committee on Appropriations reports
an appropriation measure for fiscal year 1998, 1999,
or 2000 that includes an appropriation for arrear-
ages for international organizations, international
peacekeeping, and multilateral development banks
during that fiscal year, and the sum of the appro-
priations for the period of fiscal years 1998 through
2000 do not exceed $1,884,000,000 in budget au-
thority; or
‘‘(2) a conference committee submits a con-
ference report thereon;
the chairman of the Committee on the Budget of the Sen-
ate or House of Representatives shall make the adjust-
ments referred to in subsection (c) to reflect the additional
new budget authority for such matter provided in that
measure or conference report and the additional outlays
flowing in all fiscal years from such amounts for such mat-
ter.
‘‘(b) APPLICATION OF ADJUSTMENTS.—The adjust-
ments and revisions to allocations, aggregates, and limits
made by the Chairman of the Committee on the Budget
pursuant to subsection (a) for legislation shall only apply
while such legislation is under consideration and shall only
permanently take effect upon the enactment of that legis-
lation.
‘‘(c) CONTENT OF ADJUSTMENTS.—The adjustments
referred to in subsection (a) shall consist of adjustments,
as appropriate, to—
‘‘(1) the discretionary spending limits as set
forth in the most recently agreed to concurrent reso-
lution on the budget;
‘‘(2) the allocations made pursuant to the most
recently adopted concurrent resolution on the budget
pursuant to section 302(a); and
‘‘(3) the budgetary aggregates as set forth in
the most recently adopted concurrent resolution on
the budget.
‘‘(d) REPORTING REVISED SUBALLOCATIONS.—Fol-
lowing the adjustments made under subsection (a), the
Committees on Appropriations of the Senate and the
House of Representatives may report appropriately revised
suballocations pursuant to section 302(b) to carry out this
subsection.
‘‘(e) DEFINITIONS.—As used in subsection (a)(1)(A),
when referring to continuing disability reviews, the terms
‘continuing disability reviews’, ‘additional new budget au-
thority’, and ‘additional outlays’ shall have the same
meanings as provided in section 251(b)(2)(C)(ii) of the
Balanced Budget and Emergency Deficit Control Act of
1985.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Sections
302(g), 311(c), and 313(e) of the Congressional Budget
Act of 1974 are repealed.
(2) The table of contents set forth in section 1(b) of
the Congressional Budget and Impoundment Control Act
of 1974 is amended by adding after the item relating to
section 313 the following new item:
‘‘Sec. 314. Adjustments.’’.
SEC. 114. EFFECT OF SELF-EXECUTING AMENDMENTS ON
POINTS OF ORDER IN THE HOUSE OF REP-
RESENTATIVES.
(a) EFFECT OF POINTS OF ORDER.—Title III of the
Congressional Budget Act of 1974 is amended by adding
after section 314 the following new section:
‘‘EFFECT OF SELF-EXECUTING AMENDMENTS ON POINTS
OF ORDER IN THE HOUSE OF REPRESENTATIVES
‘‘SEC. 315. In the House of Representatives, if a pro-
vision of a bill, as reported, violates a section of this title
or title IV and a self-executing rule providing for consider-
ation of that bill modifies that provision to eliminate such
violation, then such point of order shall not lie against
consideration of that bill.’’.
(b) CONFORMING AMENDMENT.—The table of con-
tents set forth in section 1(b) of the Congressional Budget
and Impoundment Control Act of 1974 is amended by
adding after the item relating to section 314 the following
new item:
‘‘Sec. 315. Effect of self-executing amendments on points of order in the House
of Representatives.’’.
SEC. 115. AMENDMENT OF SECTION 401 AND REPEAL OF
SECTION 402.
(a) SECTION 401.—Subsections (a) and (b) of section
401 of the Congressional Budget Act of 1974 are amended
to read as follows:
‘‘BILLS PROVIDING NEW SPENDING AUTHORITY OR NEW
CREDIT AUTHORITY
‘‘SEC. 401. (a) CONTROLS ON LEGISLATION PROVID-
ING SPENDING AUTHORITY OR CREDIT AUTHORITY.—It
shall not be in order in either the House of Representa-
tives or the Senate to consider any bill, joint resolution,
amendment, motion, or conference report, as reported to
its House which provides new spending authority de-
scribed in subsection (c)(2) (A) or (B) or new credit au-
thority, unless that bill, resolution, conference report, or
amendment also provides that such new spending author-
ity as described in subsection (c)(2) (A) or (B) or new
credit authority is to be effective for any fiscal year only
to such extent or in such amounts as are provided in ap-
propriation Acts.
‘‘(b) LEGISLATION PROVIDING ENTITLEMENT AU-
THORITY.—It shall not be in order in either the House
of Representatives or the Senate to consider any bill, joint
resolution, amendment, motion, or conference report, as
reported to its House which provides new spending author-
ity described in subsection (c)(2)(C) which is to become
effective before the first day of the fiscal year which begins
during the calendar year in which such bill or resolution
is reported.’’.
(b) REPEALER OF SECTION 402.—
(1) Section 402 of the Congressional Budget
Act of 1974 is repealed.
(2) CONFORMING AMENDMENTS.—
(A) Sections 403 through 407 of the Con-
gressional Budget Act of 1974 are redesignated
as sections 402 through 406, respectively.
(B) The table of contents set forth in sec-
tion 1(b) of the Congressional Budget and Im-
poundment Control Act of 1974 is amended by
deleting the item relating to section 402 and by
redesignating the items relating to sections 403
through 407 as the items relating to sections
402 through 406, respectively.
SEC. 116. REPEAL OF TITLE VI.
(a) REPEALER.—Title VI of the Congressional Budg-
et Act of 1974 is repealed.
(b) CONFORMING AMENDMENTS.—The items relating
to title VI of the table of contents set forth in section 1(b)
of the Congressional Budget and Impoundment Control
Act of 1974 are repealed.
SEC. 117. AMENDMENTS TO SECTION 904.
(a) CONFORMING AMENDMENT.—Section 904(a) of
the Congressional Budget Act of 1974 is amended by
striking ‘‘(except section 905)’’ and by striking ‘‘V, and
VI (except section 601(a))’’ and inserting ‘‘and V’’.
(b) WAIVERS.—Section 904(c) of the Congressional
Budget Act of 1974 is amended to read as follows:
‘‘(c) WAIVERS.—
‘‘(1) 
Sections 
305(b)(2), 
305(c)(4), 
306,
310(d)(2), 313, 904(c), and 904(d) of this Act may
be waived or suspended in the Senate only by the af-
firmative vote of three-fifths of the Members, duly
chosen and sworn.
‘‘(2) Sections 301(i), 302(c), 302(f), 310(g),
311(a), 
and 
315 
of 
this 
Act 
and 
sections
258(a)(4)(C), 
258(A)(b)(3)(C)(I), 
258(B)(f)(1),
258B(h)(1), 
258(h)(3), 
258C(a)(5), 
and
258(C)(b)(1) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 may be waived or
suspended in the Senate only by the affirmative vote
of three-fifths of the Members, duly chosen and
sworn.’’.
(c) APPEALS.—Section 904(d) of the Congressional
Budget Act of 1974 is amended to read as follows:
‘‘(d) APPEALS.—
‘‘(1) Appeals in the Senate from the decisions
of the Chair relating to any provision of title III or
IV of section 1017 shall, except as otherwise pro-
vided therein, be limited to 1 hour, to be equally di-
vided between, and controlled by, the mover and the
manager of the resolution, concurrent resolution,
reconciliation bill, or rescission bill, as the case may
be.
‘‘(2) An affirmative vote of three-fifths of the
Members, duly chosen and sworn, shall be required
in the Senate to sustain an appeal of the ruling of
the Chair on a point of order raised under sections
305(b)(2), 305(c)(4), 306, 310(d)(2), 313, 904(c),
and 904(d) of this Act.
‘‘(3) An affirmative vote of three-fifths of the
Members, duly chosen and sworn, shall be required
in the Senate to sustain an appeal of the ruling of
the Chair on a point of order raised under sections
301(i), 302(c), 302(f), 310(g), 311(a), and 315 of
this 
Act 
and 
sections 
258(a)(4)(C),
258(A)(b)(3)(C)(I), 
258(B)(f)(1), 
258B(h)(1),
258(h)(3), 258C(a)(5), and 258(C)(b)(1) of the Bal-
anced Budget and Emergency Deficit Control Act of
1985.’’.
(d) EXPIRATION OF SUPERMAJORITY VOTING RE-
QUIREMENTS.—Section 904 of the Congressional Budget
Act of 1974 is amended by adding at the end the follow-
ing:
‘‘(e) EXPIRATION OF CERTAIN SUPERMAJORITY VOT-
ING REQUIREMENTS.—Subsections (c)(2) and (d)(3) shall
expire on September 30, 2002.’’.
SEC. 118. REPEAL OF SECTIONS 905 AND 906.
(a) REPEALER.—Sections 905 and 906 of the Con-
gressional Budget and Impoundment Control Act of 1974
are repealed.
(b) CONFORMING AMENDMENTS.—The table of con-
tents set forth in section 1(b) of the Congressional Budget
and Impoundment Control Act of 1974 is amended by
striking the items relating to sections 905 and 906.
SEC. 119. AMENDMENTS TO SECTIONS 1022 AND 1024.
(a) SECTION 1022.—Section 1022(b)(1)(F) of the
Congressional Budget and Impoundment Control Act of
1974 is amended by striking ‘‘section 601’’ and inserting
‘‘section 251(c) the Balanced Budget and Emergency Def-
icit Control Act of 1985’’.
(b) SECTION 1024.—Section 1024(a)(1)(B) of the
Congressional Budget and Impoundment Control Act of
1974 is amended by striking ‘‘section 601(a)(2)’’ and in-
serting ‘‘section 251(c) the Balanced Budget and Emer-
gency Deficit Control Act of 1985’’.
SEC. 120. AMENDMENT TO SECTION 1026.
Section 1026(7)(A)(iv) of the Congressional Budget
and Impoundment Control Act of 1974 is amended by
striking ‘‘and’’ and inserting ‘‘or’’.
TITLE II—AMENDMENTS TO THE
BALANCED 
BUDGET 
AND
EMERGENCY 
DEFICIT 
CON-
TROL ACT OF 1985
SEC. 201. PURPOSE.
This title extends discretionary spending limits and
pay-as-you-go requirements.
SEC. 202. GENERAL STATEMENT AND DEFINITIONS.
(a) GENERAL STATEMENT.—Section 250(b) of the
Balanced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 900(b)) is amended by striking the first
two sentences and inserting the following: ‘‘This part pro-
vides for the enforcement of a balanced budget by fiscal
year 2002 as called for in House Concurrent Resolution
84 (105th Congress, 1st session).’’.
(b) DEFINITIONS.—Section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) The term ‘category’ means defense, non-
defense, and violent crime reduction discretionary
appropriations as specified in the joint explanatory
statement accompanying a conference report on the
Balanced Budget Act of 1997.’’;
(2) by striking paragraph (6) and inserting the
following:
‘‘(6) The term ‘budgetary resources’ means new
budget authority, unobligated balances, direct spend-
ing authority, and obligation limitations.’’;
(3) in paragraph (9), by striking ‘‘submission of
the fiscal year 1992 budget that are not included
with a budget submission’’ and inserting ‘‘that budg-
et submission that are not included with it’’;
(4) in paragraph (14), by inserting ‘‘first 4’’ be-
fore ‘‘fiscal years’’ and by striking ‘‘1995’’ and in-
serting ‘‘2006’’;
(5) by striking paragraphs (17) and (20) and
by redesignating paragraphs (18), (19), and (21) as
paragraphs (17), (18), and (19), respectively;
(6) in paragraph (17) (as redesignated), by
striking ‘‘Omnibus Budget Reconciliation Act of
1990’’ and inserting ‘‘Balanced Budget Act of
1997’’;
(7) in paragraph (20) (as redesignated), by
striking the second sentence; and
(8) by adding at the end the following new
paragraph:
‘‘(20) The term ‘consultation’, when applied to
the Committee on the Budget of either the House of
Representatives or of the Senate, means written
communication with that committee that affords
that committee an opportunity to comment on the
matter that is the subject of the consultation before
official action is taken on such matter.’’.
SEC. 203. ENFORCING DISCRETIONARY SPENDING LIMITS.
(a) EXTENSION THROUGH FISCAL YEAR 2002.—Sec-
tion 251 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended—
(1) in the side heading of subsection (a), by
striking ‘‘1991–1998’’ and inserting ‘‘1997–2002’’;
(2) in subsection (a)(7) by inserting ‘‘(excluding
Saturdays, Sundays, or legal holidays)’’ after ‘‘5 cal-
endar days’’;
(3) in the first sentence of subsection (b)(1), by
striking ‘‘1992, 1993, 1994, 1995, 1996, 1997 or
1998’’ and inserting ‘‘1997 or any fiscal year there-
after through 2002’’ and by striking ‘‘through
1998’’ and inserting ‘‘through 2002’’;
(4) in subsection (b)(1), by striking ‘‘the follow-
ing:’’ and all that follows through ‘‘in concepts and
definitions’’ the first place it appears and inserting
‘‘the following: the adjustments’’ and by striking
subparagraphs (B) and (C);
(5) in subsection (b)(2), by striking ‘‘1991,
1992, 1993, 1994, 1995, 1996, 1997, or 1998’’ and
inserting ‘‘1997 or any fiscal year thereafter through
2002’’, by striking ‘‘through 1998’’ and inserting
‘‘through 2002’’, and by striking subparagraphs (A),
(B), (C), (E), and (G), and by redesignating sub-
paragraphs (D), (F), and (H) as subparagraphs (A),
(B), and (C), respectively;
(6) in subsection (b)(2)(A) (as redesignated),
by striking ‘‘(i)’’, by striking clause (ii), and by in-
serting ‘‘fiscal’’ before ‘‘years’’;
(7) in subsection (b)(2)(B) (as redesignated),
by striking everything after ‘‘the adjustment in out-
lays’’ and inserting ‘‘for a fiscal year is the amount
of the excess but not to exceed 0.5 percent of the
adjusted discretionary spending limit on outlays for
that fiscal year in fiscal year 1997 or any fiscal year
thereafter through 2002; and
(8) by adding at the end of subsection (b)(2)
the following new subparagraphs:
‘‘(D) ALLOWANCE FOR IMF.—If an appro-
priations bill or joint resolution is enacted for
fiscal year 1998, 1999, 2000, 2001, or 2002
that includes an appropriation with respect to
clause (i) or (ii), the adjustment shall be the
amount of budget authority in the measure that
is the dollar equivalent, in terms of Special
Drawing Rights, of—
‘‘(i) an increase in the United States
quota as part of the International Mone-
tary Fund Eleventh General Review of
Quotas (United States Quota); or
‘‘(ii) any increase in the maximum
amount available to the Secretary of the
Treasury pursuant to section 17 of the
Bretton Woods Agreement Act, as amend-
ed from time to time (New Arrangements
to Borrow).
‘‘(E) ALLOWANCE
FOR
INTERNATIONAL
ARREARAGES.—
‘‘(i) ADJUSTMENTS.—If an appropria-
tions bill or joint resolution is enacted for
fiscal year 1998, 1999, or 2000 that in-
cludes an appropriation for arrearages for
international organizations, international
peacekeeping, and multilateral banks for
that fiscal year, the adjustment shall be
the amount of budget authority in such
measure and the outlays flowing in all fis-
cal years from such budget authority.
‘‘(ii) 
LIMITATIONS.—The 
total
amount of adjustments made pursuant to
this subparagraph for the period of fiscal
years 1998 through 2000 shall not exceed
$1,884,000,000 in budget authority.’’.
(b) SHIFTING OF DISCRETIONARY SPENDING LIMITS
INTO THE BALANCED BUDGET AND EMERGENCY DEFICIT
CONTROL ACT OF 1985.—Section 251 of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended by adding at the end the following new sub-
section:
‘‘(c) DISCRETIONARY SPENDING LIMIT.—As used in
this part, the term ‘discretionary spending limit’ means—
‘‘(1) with respect to fiscal year 1997, for the
discretionary category, the current adjusted amount
of new budget authority and outlays;
‘‘(2) with respect to fiscal year 1998—
‘‘(A) 
for 
the 
defense 
category:
$269,000,000,000 in new budget authority and
$266,823,000,000 in outlays;
‘‘(B) 
for 
the 
nondefense 
category:
$252,357,000,000 in new budget authority and
$282,853,000,000 in outlays; and
‘‘(C) for the violent crime reduction cat-
egory: $5,500,000,000 in new budget authority
and $3,592,000,000 in outlays;
‘‘(3) with respect to fiscal year 1999—
‘‘(A) 
for 
the 
defense 
category:
$271,500,000,000 in new budget authority and
$266,518,000,000 in outlays; and
‘‘(B) 
for 
the 
nondefense 
category:
$261,499,000,000 in new budget authority and
$292,803,000,000 in outlays;
‘‘(4) with respect to fiscal year 2000, for the
discretionary category: $537,193,000,000 in new
budget authority and $564,265,000,000 in outlays;
‘‘(5) with respect to fiscal year 2001, for the
discretionary category: $542,032,000,000 in new
budget authority and $564,396,000,000 in outlays;
and
‘‘(6) with respect to fiscal year 2002, for the
discretionary category: $551,074,000,000 in new
budget authority and $560,799,000,000 in outlays;
as adjusted in strict conformance with subsection (b).’’.
SEC. 204. VIOLENT CRIME REDUCTION TRUST FUND.
(a) SEQUESTRATION REGARDING VIOLENT CRIME
REDUCTION TRUST FUND.—Section 251A of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
is repealed.
(b) CONFORMING AMENDMENT.—Section 310002 of
Public Law 103–322 (42 U.S.C. 14212) is repealed.
SEC. 205. ENFORCING PAY-AS-YOU-GO.
(a) EXTENSION.—Section 252 (2 U.S.C. 902) is
amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) PURPOSE.—The purpose of this section is to as-
sure that any legislation enacted prior to September 30,
2002, affecting direct spending or receipts that increases
the deficit will trigger an offsetting sequestration.
‘‘(b) SEQUESTRATION.—
‘‘(1) TIMING.—Within 15 calendar days after
Congress adjourns to end a session and on the same
day as a sequestration (if any) under sections 251
and 253, there shall be a sequestration to offset the
amount of any net deficit increase in the budget
year caused by all direct spending and receipts legis-
lation (after adjusting for any prior sequestration as
provided by paragraph (2)) plus any net deficit in-
crease in the prior fiscal year caused by all direct
spending and receipts legislation not reflected in the
final OMB sequestration report for that year.
‘‘(2) CALCULATION
OF
DEFICIT
INCREASE.—
OMB shall calculate the amount of deficit increase,
if any, in the budget year by adding—
‘‘(A) all applicable estimates of direct
spending and receipts legislation transmitted
under subsection (d) applicable to the budget
year, other than any amounts included in such
estimates resulting from—
‘‘(i) full funding of, and continuation of, the de-
posit insurance guarantee commitment in effect on
the date of enactment of this section; and
‘‘(ii) emergency provisions as designated under
subsection (e); and
‘‘(B) the estimated amount of savings in
direct spending programs applicable to the
budget year resulting from the prior year’s se-
questration under this section or section 253, if
any (except for any amounts sequestered as a
result of any deficit increase in the fiscal year
immediately preceding the prior fiscal year), as
published in OMB’s final sequestration report
for that prior year; and
‘‘(C) all applicable estimates of direct
spending and receipts legislation transmitted
under subsection (d) for the current year that
are not reflected in the final OMB sequestra-
tion report for that year, other than any
amounts included in such estimates resulting
from emergency provisions as designated under
subsection (e).’’;
(2) by amending subsection (c)(1)(B), by in-
serting ‘‘and direct’’ after ‘‘guaranteed’’;
(3) by amending subsection (d) to read as fol-
lows:
‘‘(d) ESTIMATES.—
‘‘(1) CBO ESTIMATES.—As soon as practicable
after Congress completes action on any direct spend-
ing or receipts legislation, CBO shall provide an esti-
mate of the budgetary effects of that legislation.
‘‘(2) OMB ESTIMATES.—Not later than 5 cal-
endar days (excluding Saturdays, Sundays, or legal
holidays) after the enactment of any direct spending
or receipts legislation, OMB shall transmit a report
to the House of Representatives and to the Senate
containing—
‘‘(A) the CBO estimate of the budgetary
effects of that legislation;
‘‘(B) an OMB estimate of the budgetary
effects of that legislation using current eco-
nomic and technical assumptions; and
‘‘(C) an explanation of any difference be-
tween the two estimates.
‘‘(3) SCOPE
OF
ESTIMATES.—The estimates
under this section shall include the amount of
change in outlays or receipts, as the case may be,
for the current year (if applicable), the budget year,
and each outyear.
‘‘(4) SCOREKEEPING GUIDELINES.—OMB and
CBO, after consultation with each other and the
Committees on the Budget of the House of Rep-
resentatives and the Senate, shall—
‘‘(A) 
determine 
common 
scorekeeping
guidelines; and
‘‘(B) in conformance with such guidelines,
prepare estimates under this section.’’; and
(4) in subsection (e), by striking ‘‘, for any fis-
cal year from 1991 through 1998,’’ and by striking
‘‘through 1995’’.
SEC. 206. REPORTS AND ORDERS.
Section 254 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended—
(1) by striking subsection (c) and redesignating
subsections (d) through (k) as (c) through (j), re-
spectively;
(2) in subsection (c)(2) (as redesignated), by
striking ‘‘1998’’ and inserting ‘‘2002’’; and
(3)(A) in subsection (f)(2)(A) (as redesignated),
by striking ‘‘1998’’ and inserting ‘‘2002’’; and
(B) in subsection (f)(3) (as redesignated), by
striking ‘‘through 1998’’.
SEC. 207. EXEMPT PROGRAMS AND ACTIVITIES.
(a) VETERANS PROGRAMS.—Section 255(b) of the
Balanced Budget and Emergency Deficit Control Act of
1985 is amended as follows:
(1) In the item relating to Veterans Insurance
and Indemnity, strike ‘‘Indemnity’’ and insert ‘‘In-
demnities’’.
(2) In the item relating to Veterans’ Canteen
Service Revolving Fund, strike ‘‘Veterans’’’.
(3) In the item relating to Benefits under chap-
ter 21 of title 38, strike ‘‘(36–0137–0–1–702)’’ and
insert ‘‘(36–0120–0–1–701)’’.
(4) In the item relating to Veterans’ compensa-
tion, strike ‘‘Veterans’ compensation’’ and insert
‘‘Compensation’’.
(5) In the item relating to Veterans’ pensions,
strike ‘‘Veterans’ pensions’’ and insert ‘‘Pensions’’.
(6) After the last item, insert the following new
items:
‘‘Benefits under chapter 35 of title 38,
United States Code, related to educational as-
sistance for survivors and dependents of certain
veterans with service-connected disabilities (36–
0137–0–1–702);
‘‘Assistance and services under chapter 31
of title 38, United States Code, relating to
training and rehabilitation for certain veterans
with service-connected disabilities (36–0137–0–
1–702);
‘‘Benefits under subchapters I, II, and III
of chapter 37 of title 38, United States Code,
relating to housing loans for certain veterans
and for the spouses and surviving spouses of
certain veterans Guaranty and Indemnity Pro-
gram Account (36–1119–0–1–704);
‘‘Loan Guaranty Program Account (36–
1025–0–1–704); and
‘‘Direct Loan Program Account (36–1024–
0–1–704).’’.
(b) CERTAIN PROGRAM BASES.—Section 255(f) of
the Balanced Budget and Emergency Deficit Control Act
of 1985 is amended to read as follows:
‘‘(f) OPTIONAL EXEMPTION OF MILITARY PERSON-
NEL.—
‘‘(1) The President may, with respect to any
military personnel account, exempt that account
from sequestration or provide for a lower uniform
percentage reduction than would otherwise apply.
‘‘(2) The President may not use the authority
provided by paragraph (1) unless he notifies the
Congress of the manner in which such authority will
be exercised on or before the date specified in sec-
tion 254(a) for the budget year.’’.
(c) OTHER PROGRAMS AND ACTIVITIES.—(1) Section
255(g)(1)(A) of the Balanced Budget Emergency Deficit
Control Act of 1985 is amended as follows:
(A) After the first item, insert the following
new item:
‘‘Activities financed by voluntary payments
to the Government for goods or services to be
provided for such payments;’’.
(B) Strike ‘‘Thrift Savings Fund (26–8141–0–
7–602);’’.
(C) In the first item relating to the Bureau of
Indian Affairs, insert ‘‘Indian land and water claims
settlements and’’ after the comma.
(D) In the second item relating to the Bureau
of Indian Affairs, strike ‘‘miscellaneous’’ and insert
‘‘Miscellaneous’’ and strike ‘‘, tribal trust funds’’.
(E) Strike ‘‘Claims, defense (97–0102–0–1–
051);’’.
(F) In the item relating to Claims, judgments,
and relief acts, strike ‘‘806’’ and insert ‘‘808’’.
(G) Strike ‘‘Coinage profit fund (20–5811–0–
2–803)’’.
(H) Insert ‘‘Compact of Free Association (14–
0415–0–1–808);’’ after the item relating to the
Claims, judgments, and relief acts.
(I) Insert ‘‘Conservation Reserve Program (12–
2319–0–1–302);’’ after the item relating to the
Compensation of the President.
(J) In the item relating to the Customs Service,
strike ‘‘852’’ and insert ‘‘806’’.
(K) In the item relating to the Comptroller of
the Currency, insert ‘‘, Assessment funds (20–8413–
0–8–373)’’ before the semicolon.
(L) Strike ‘‘Director of the Office of Thrift Su-
pervision;’’.
(M) Strike ‘‘Eastern Indian land claims settle-
ment fund (14–2202–0–1–806);’’.
(N) After the item relating to the Exchange
stabilization fund, insert the following new items:
‘‘Farm Credit Administration, Limitation
on Administrative Expenses (78–4131–0–3–
351);
‘‘Farm Credit System Financial Assistance
Corporation, interest payment (20–1850–0–1–
908);’’.
(O) Strike ‘‘Federal Deposit Insurance Cor-
poration;’’.
(P) In the first item relating to the Federal De-
posit Insurance Corporation, insert ‘‘(51–4064–0–3–
373)’’ before the semicolon.
(Q) In the second item relating to the Federal
Deposit Insurance Corporation, insert ‘‘(51–4065–
0–3–373)’’ before the semicolon.
(R) In the third item relating to the Federal
Deposit Insurance Corporation, insert ‘‘(51–4066–
0–3–373)’’ before the semicolon.
(S) In the item relating to the Federal Housing
Finance Board, insert ‘‘(95–4039–0–3–371)’’ before
the semicolon.
(T) In the item relating to the Federal payment
to the railroad retirement account, strike ‘‘account’’
and insert ‘‘accounts’’.
(U) In the item relating to the health profes-
sions graduate student loan insurance fund, insert
‘‘program 
account’’ 
after 
‘‘fund’’ 
and 
strike
‘‘(Health Education Assistance Loan Program) (75–
4305–0–3–553)’’ and insert ‘‘(75–0340–0–1–552)’’.
(V) In the item relating to Higher education fa-
cilities, strike ‘‘and insurance’’.
(W) In the item relating to Internal Revenue
collections for Puerto Rico, strike ‘‘852’’ and insert
‘‘806’’.
(X) Amend the item relating to the Panama
Canal Commission to read as follows:
‘‘Panama Canal Commission, Panama
Canal Revolving Fund (95–4061–0–3–403);’’.
(Y) In the item relating to the Medical facilities
guarantee and loan fund, strike ‘‘(75–4430–0–3–
551)’’ and insert ‘‘(75–9931–0–3–550)’’.
(Z) In the first item relating to the National
Credit Union Administration, insert ‘‘operating fund
(25–4056–0–3–373)’’ before the semicolon.
(AA) In the second item relating to the Na-
tional Credit Union Administration, strike ‘‘central’’
and insert ‘‘Central’’ and insert ‘‘(25–4470–0–3–
373)’’ before the semicolon.
(BB) In the third item relating to the National
Credit Union Administration, strike ‘‘credit’’ and in-
(KK) After the item relating to the Tennessee
Valley Authority funds, insert the following new
items:
‘‘Thrift Savings Fund;
‘‘United States Enrichment Corporation
(95–4054–0–3–271);
‘‘Vaccine Injury Compensation (75–0320–
0–1–551);
‘‘Vaccine Injury Compensation Program
Trust Fund (20–8175–0–7–551);’’.
(2) Section 255(g)(1)(B) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended as fol-
lows:
(A) Strike ‘‘The following budget’’ and insert
‘‘The following Federal retirement and disability’’.
(B) In the item relating to Black lung benefits,
strike ‘‘lung benefits’’ and insert ‘‘Lung Disability
Trust Fund’’.
(C) In the item relating to the Court of Federal
Claims Court Judges’ Retirement Fund, strike
‘‘Court of Federal’’.
(D) In the item relating to Longshoremen’s
compensation benefits, insert ‘‘Special workers com-
pensation expenses,’’ before ‘‘Longshoremen’s’’.
(E) In the item relating to Railroad retirement
tier II, strike ‘‘retirement tier II’’ and insert ‘‘Indus-
try Pension Fund’’.
(3) Section 255(g)(2) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended as fol-
lows:
(A) Strike the following items:
‘‘Agency for International Development,
Housing, and other credit guarantee programs
(72–4340–0–3–151);
‘‘Agricultural credit insurance fund (12–
4140–0–1–351);’’.
(B) In the item relating to Check forgery,
strike ‘‘Check’’ and insert ‘‘United States Treasury
check’’.
(C) Strike ‘‘Community development grant loan
guarantees (86–0162–0–1–451);’’.
(D) After the item relating to the United States
Treasury Check forgery insurance fund, insert the
following new item:
‘‘Credit liquidating accounts;’’.
(E) Strike the following items:
‘‘Credit union share insurance fund (25–
4468–0–3–371);
‘‘Economic development revolving fund
(13–4406–0–3);
‘‘Export-Import 
Bank 
of 
the 
United
States, Limitation of program activity (83–
4027–0–1–155);
‘‘Federal deposit Insurance Corporation
(51–8419–0–8–371);
‘‘Federal Housing Administration fund
(86–4070–0–3–371);
‘‘Federal ship financing fund (69–4301–0–
3–403);
‘‘Federal ship financing fund, fishing ves-
sels (13–4417–0–3–376);
‘‘Government National Mortgage Associa-
tion, Guarantees of mortgage-backed securities
(86–4238–0–3–371);
‘‘Health education loans (75–4307–0–3–
553);
‘‘Indian loan guarantee and insurance fund
(14–4410–0–3–452);
‘‘Railroad rehabilitation and improvement
financing fund (69–4411–0–3–401);
‘‘Rural development insurance fund (12–
4155–0–3–452);
‘‘Rural electric and telephone revolving
fund (12–4230–8–3–271);
‘‘Rural housing insurance fund (12–4141–
0–3–371);
‘‘Small Business Administration, Business
loan and investment fund (73–4154–0–3–376);
‘‘Small Business Administration, Lease
guarantees revolving fund (73–4157–0–3–376);
‘‘Small Business Administration, Pollution
control equipment contract guarantee revolving
fund (73–4147–0–3–376);
‘‘Small Business Administration, Surety
bond guarantees revolving fund (73–4156–0–3–
376);
‘‘Department of Veterans Affairs Loan
guaranty revolving fund (36–4025–0–3–704);’’.
(d) LOW-INCOME PROGRAMS.—Section 255(h) of the
Balanced Budget and Emergency Deficit Control Act of
1985 is amended as follows:
(1) Amend the item relating to Child nutrition
to read as follows:
‘‘State child nutrition programs (with the
exception of special milk programs) (12–3539–
0–1–605);’’.
(2) Amend the item relating to the Women, in-
fants, and children program to read as follows:
‘‘Special supplemental nutrition program
for women, infants, and children (WIC) (12–
3510–0–1–605).’’.
(e) IDENTIFICATION OF PROGRAMS.—Section 255(i)
of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended to read as follows:
‘‘(i) IDENTIFICATION OF PROGRAMS.—For purposes
of subsections (b), (g), and (h), each account is identified
by the designated budget account identification code num-
ber set forth in the Budget of the United States Govern-
ment 1996–Appendix, and an activity within an account
is designated by the name of the activity and the identi-
fication code number of the account.’’.
(f) OPTIONAL EXEMPTION OF MILITARY PERSON-
NEL.—Section 255(h) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (relating to optional ex-
emption of military personnel) is repealed.
SEC. 208. GENERAL AND SPECIAL SEQUESTRATION RULES.
(a) SECTION HEADING.—(1) The section heading of
section 256 of the Balanced Budget and Emergency Defi-
cit Control Act of 1985 is amended by striking ‘‘EXCEP-
TIONS, LIMITATIONS, AND SPECIAL RULES’’ and in-
serting ‘‘GENERAL
AND
SPECIAL
SEQUESTRATION
RULES’’.
(2) The item relating to section 256 in the table con-
tents set forth in section 250(a) of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended
to read as follows:
‘‘Sec. 256. General and special sequestration rules.’’.
(b) AUTOMATIC
SPENDING
INCREASES.—Section
256(a) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by striking paragraph (1)
and redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively.
(c) GUARANTEED AND DIRECT STUDENT LOAN PRO-
GRAMS.—Section 256(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to
read as follows:
‘‘(b) STUDENT LOANS.—(1) For all student loans
under part B or D of title IV of the Higher Education
Act of 1965 made during the period when a sequestration
order under section 254 is in effect, origination fees under
sections 438(c)(2) and 455(c) of that Act shall be in-
creased by a uniform percentage sufficient to produce the
dollar savings in student loan programs (as a result of
that sequestration order) required by section 252 or 253,
as applicable.
‘‘(2) For any loan made during the period beginning
on the date that an order issued under section 254 takes
effect with respect to a fiscal year and ending at the close
of such fiscal year, the origination fees which are author-
ized to be collected pursuant to sections 438(c)(2) and
455(c) of such Act shall be increased by 0.50 percent.’’.
(d) HEALTH CENTERS.—Section 256(e)(1) of the
Balanced Budget and Emergency Deficit Control Act of
1985 is amended by striking the dash and all that follows
thereafter and inserting ‘‘2 percent.’’.
(e) FEDERAL PAY.—Section 256(g)(1) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
is amended by inserting ‘‘(including any amount payable
under section 5303 or 5304 of title 5, United States
Code)’’ after ‘‘such statutory pay system’’.
(f) TREATMENT OF FEDERAL ADMINISTRATIVE EX-
PENSES.—Section 256(h)(4) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by
striking subparagraphs (D) and (H), by redesignating
subparagraphs (E), (F), (G), and (I), as subparagraphs
(D), (E), (F), and (G), respectively, and by adding at the
end the following new subparagraph:
‘‘(H) Farm Credit Administration.’’.
(g) COMMODITY
CREDIT
CORPORATION.—Section
256(j)(5) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
‘‘(5) DAIRY PROGRAM.—Notwithstanding other
provisions of this subsection, as the sole means of
achieving any reduction in outlays under the milk
price support program, the Secretary of Agriculture
shall provide for a reduction to be made in the price
received by producers for all milk produced in the
United States and marketed by producers for com-
mercial use. That price reduction (measured in cents
per hundred weight of milk marketed) shall occur
under section 201(d)(2)(A) of the Agricultural Act
of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin on the
day any sequestration order is issued under section
254, and shall not exceed the aggregate amount of
the reduction in outlays under the milk price sup-
port program that otherwise would have been
achieved by reducing payments for the purchase of
milk or the products of milk under this subsection
during the applicable fiscal year.’’.
(h) EFFECTS OF SEQUESTRATION.—Section 256(k)
of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended as follows:
(1) In paragraph (1), strike ‘‘other than a trust
or special fund account’’ and insert ‘‘, except as pro-
vided in paragraph (5)’’ before the period.
(2) Strike paragraph (4), redesignate para-
graphs (5) and (6) as paragraphs (4) and (5), re-
spectively, and amend paragraph (5) (as redesig-
nated) to read as follows:
‘‘(5) Budgetary resources sequestered in revolv-
ing, trust, and special fund accounts, and offsetting
collections sequestered in appropriation accounts
shall not be available for obligation during the fiscal
year in which the sequestration occurs, but shall be
available in subsequent years to the extent otherwise
provided in law.’’.
SEC. 209. THE BASELINE.
Section 257 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended—
(1) in subsection (b)(2) by amending subparagraph
(A) to read as follows:
‘‘(A)(i) Except as provided in clause (ii), no
program with estimated current year outlays greater
than $50,000,000 shall be assumed to expire in the
budget year or the outyears.
‘‘(ii) Clause (i) shall not apply to a program if
legislation establishing or modifying that program
contains a provision stating ‘Section 257(b)(2) of
the Balanced Budget and Emergency Deficit Control
Act of 1985 shall not apply to the program specified
in ll of this Act.’, the blank space being filled in
with the appropriate section or sections of that legis-
lation.
‘‘(iii) No bill, resolution, amendment, motion, or
conference report shall be subject to a point of order
under section 306 of the Congressional Budget Act
of 1974 solely because it includes the provision spec-
ified in clause (ii).
‘‘(iv) Upon the expiration of the suspensions
contained in section 171 of Public Law 104–193
with regard to a program in such Act with estimated
fiscal year outlays greater than $50,000,000, that
program shall be assumed to operate under that Act
as in effect immediately before reversion to the laws
suspended by such Act.’’
(2) by adding at the end of subsection (b)(2)
the following new subparagraph:
‘‘(D) If any law expires before the budget year
or any outyear, then any program with estimated
current year outlays greater than $50 million which
operates under that law shall be assumed to con-
tinue to operate under that law as in effect imme-
diately before its expiration.’’;
(3) in the second sentence of subsection (c)(5),
by striking ‘‘national product fixed-weight price
index’’ and inserting ‘‘domestic product chain-type
price index’’; and
(4) by striking subsection (e) and inserting the
following:
‘‘(e) ASSET SALES.—Amounts realized from the sale
of an asset other than a loan asset shall not be counted
against legislation if that sale would result in a financial
cost to the Federal Government.’’.
SEC. 210. TECHNICAL CORRECTION.
Section 258 of the Balanced Budget and Emergency
Deficit Control Act of 1985, entitled ‘‘Modification of
Presidential Order’’, is repealed.
SEC. 211. JUDICIAL REVIEW.
Section 274 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended as follows:
(1) Strike ‘‘252’’ or ‘‘252(b)’’ each place it oc-
curs and insert ‘‘254’’.
(2) In subsection (d)(1)(A), strike ‘‘257(l) to
the extent that’’ and insert ‘‘256(a) if’’, strike the
parenthetical phrase, and at the end insert ‘‘or’’.
(3) In subsection (d)(1)(B), strike ‘‘new budg-
et’’ and all that follows through ‘‘spending author-
ity’’ and insert ‘‘budgetary resources’’ and strike
‘‘or’’ after the comma.
(4) Strike subsection (d)(1)(C).
(5) Strike subsection (f) and redesignate sub-
sections (g) and (h) as subsections (f) and (g), re-
spectively.
(6) In subsection (g) (as redesignated), strike
‘‘base levels of total revenues and total budget out-
lays, as’’ and insert ‘‘figures’’, and ‘‘251 (a)(2)(B)
or (c)(2),’’ and insert ‘‘254’’.
SEC. 212. EFFECTIVE DATE.
(a) EXPIRATION.—Section 275(b) of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended—
(1) by striking ‘‘Part C of this title, section’’
and inserting ‘‘Sections 251, 253, 258B, and’’;
(2) by striking ‘‘1995’’ and inserting ‘‘2002’’;
and
(3) by adding at the end the following new sen-
tence: ‘‘The remaining sections of part C of this title
shall expire September 30, 2006.’’.
(b) EXPIRATION.—Section 14002(c)(3) of the Omni-
bus Budget Reconciliation Act of 1993 (2 U.S.C. 900
note) is repealed.
SEC. 213. REDUCTION OF PREEXISTING BALANCES AND EX-
CLUSION OF EFFECTS OF THIS ACT FROM
PAYGO SCORECARD.
Upon the enactment of this Act, the Director of the
Office of Management and Budget shall—
(1) reduce any balances of direct spending and
receipts legislation for any fiscal year under section
252 of the Balanced Budget and Emergency Deficit
Control Act of 1985 to zero; and
(2) not make any estimates of changes in direct
spending outlays and receipts under subsection (d)
of such section 252 for any fiscal year resulting
from the enactment of this Act or the Revenue Rec-
onciliation Act of 1997.
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