1137
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to ensure that obligations in the fiscal year of a se-
questration and succeeding fiscal years are reduced,
from the level that would actually have occurred, by
the applicable sequestration percentage or percent-
ages.
‘‘(2) 
CANCELLATION
OF
BUDGETARY
RE-
SOURCES.—Budgetary resources sequestered from
any account other than an entitlement trust, special,
or revolving fund account shall revert to the Treas-
ury and be permanently canceled or repealed.
‘‘(3) INDEXED BENEFIT PAYMENTS.—If, under
any entitlement program—
‘‘(A) benefit payments are made to persons
or governments more frequently than once a
year, and
‘‘(B) the amount of entitlement authority
is periodically adjusted under existing law to re-
flect changes in a price index,
then for the first fiscal year to which a sequestration
order applies, the benefit reductions in that program
accomplished by the order shall take effect starting
with the payment made at the beginning of January
or 7 weeks after the order is issued, whichever is
later. For the purposes of this subsection, Veterans
1138
Title XIII
Compensation shall be considered a program that
meets the conditions of the preceding sentence.
‘‘(4) PROGRAMS, PROJECTS, OR ACTIVITIES.—
Except as otherwise provided, the same percentage
sequestration shall apply to all programs, projects,
and activities within a budget account (with pro-
grams, projects, and activities as delineated in the
appropriation Act or accompanying report for the
relevant fiscal year covering that account, or for ac-
counts not included in appropriation Acts, as delin-
eated in the most recently submitted President’s
budget).
‘‘(5) IMPLEMENTING REGULATIONS.—Adminis-
trative regulations or similar actions implementing
the sequestration of a program or activity shall be
made within 120 days of the effective date of the se-
questration of that program or activity.
‘‘(6) DISTRIBUTION FORMULAS.—To the extent
that distribution or allocation formulas differ at dif-
ferent levels of budgetary resources within an ac-
count, program, project, or activity, a sequestration
shall be interpreted as producing a lower total ap-
propriation, with that lower appropriation being obli-
gated as though it had been the pre-sequestration
appropriation and no sequestration had occurred.
1139
Title XIII
‘‘(7) CONTINGENT FEES.—In any account for
which fees charged to the public are legally deter-
mined by the level of appropriations, fees shall be
charged on the basis of the presequestration level of
appropriations.
‘‘(d) NON-JOBS PORTION OF AFDC.—Any seques-
tration order shall accomplish the full amount of any re-
quired reduction in payments for the non-jobs portion of
the aid to families with dependant children program under
the Social Security Act by reducing the Federal reim-
bursement percentage (for the fiscal year involved) by
multiplying that reimbursement percentage, on a State-
by-State basis, by the uniform percentage applicable to the
sequestration of nonexempt direct spending programs or
activities.
‘‘(e) JOBS PORTION OF AFDC.—
‘‘(1) FULL
AMOUNT
OF
SEQUESTRATION
RE-
QUIRED.—Any sequestration order shall accomplish
the full amount of any required reduction of the job
opportunities and basic skills training program
under section 402(a)(19), and part F of title VI, of
the Social Security Act, in the manner specified in
this subsection. Such an order may not reduce any
Federal matching rate pursuant to section 403(l) of
the Social Security Act.
1140
Title XIII
‘‘(2) NEW ALLOTMENT FORMULA.—
‘‘(A) GENERAL
RULE.—Notwithstanding
section 403(k) of the Social Security Act, each
State’s percentage share of the amount avail-
able after sequestration for direct spending pur-
suant to section 403(l) of such Act shall be
equal to that percentage of the total amount
paid to the States pursuant to such section
403(l) for the prior fiscal year that is rep-
resented by the amount paid to such State pur-
suant to such section 403(l) for the prior fiscal
year, except that a State may not be allotted an
amount under this subparagraph that exceeds
the amount that would have been allotted to
such State pursuant to such section 403(k) had
the sequestration not been in effect.
‘‘(B) REALLOTMENT
OF
AMOUNTS
RE-
MAINING UNALLOTTED AFTER APPLICATION OF
GENERAL RULE.—Any amount made available
after sequestration for direct spending pursuant
to section 403(l) of the Social Security Act that
remains unallotted as a result of subparagraph
(A) of this paragraph shall be allotted among
the States in proportion to the absolute dif-
ference between the amount allotted, respec-
1141
Title XIII
tively, to each State as a result of such sub-
paragraph and the amount that would have
been allotted to such State pursuant to section
403(k) of such Act had the sequestration not
been in effect, except that a State may not be
allotted an amount under this subparagraph
that results in a total allotment to the State
under this paragraph of more than the amount
that would have been allotted to such State
pursuant to such section 403(k) had the seques-
tration not been in effect.
‘‘(f) CHILD SUPPORT ENFORCEMENT PROGRAM.—
Any sequestration order shall accomplish the full amount
of any required reduction in payments under sections 455
and 458 of the Social Security Act by reducing the Fed-
eral matching rate for State administrative costs under
the program, as specified (for the fiscal year involved) in
section 455(a) of such Act, to the extent necessary to re-
duce such expenditures by that amount.
‘‘(g) COMMODITY CREDIT CORPORATION.—
‘‘(1) EFFECTIVE
DATE.—For the Commodity
Credit Corporation, the date on which a sequestra-
tion order takes effect in a fiscal year shall vary for
each crop of a commodity. In general, the sequestra-
tion order shall take effect when issued, but for each
1142
Title XIII
crop of a commodity for which 1-year contracts are
issued as an entitlement, the sequestration order
shall take effect with the start of the sign-up period
for that crop that begins after the sequestration
order is issued. Payments for each contract in such
a crop shall be reduced under the same terms and
conditions.
‘‘(2) DAIRY PROGRAM.—(A) 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 hundredweight of milk marketed) shall occur
under subparagraph (A) of section 201(d)(2) of the
Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)),
shall begin on the day any sequestration order is is-
sued, and shall not exceed the aggregate amount of
the reduction in outlays under the milk price-support
program, that otherwise would have been achieved
by reducing payments made for the purchase of milk
or the products of milk under this subsection during
that fiscal year.
1143
Title XIII
‘‘(3) EFFECT OF DELAY.—For purposes of sub-
section (b)(1), the sequestrable base for the Com-
modity Credit Corporation is the budget-year level of
gross outlays resulting from new budget authority
that is subject to reduction under paragraphs (1)
and (2), and subsection (b)(2) shall not apply.
‘‘(4) CERTAIN
AUTHORITY
NOT
TO
BE
LIM-
ITED.—Nothing in this Act shall restrict the Cor-
poration in the discharge of its authority and re-
sponsibility as a corporation to buy and sell com-
modities in world trade, or limit or reduce in any
way any appropriation that provides the Corporation
with funds to cover its net realized losses.
‘‘(h) 
EXTENDED
UNEMPLOYMENT
COMPENSA-
TION.—(1) A State may reduce each weekly benefit pay-
ment made under the Federal-State Extended Unemploy-
ment Compensation Act of 1970 for any week of unem-
ployment occurring during any period with respect to
which payments are reduced under any sequestration
order by a percentage not to exceed the percentage by
which the Federal payment to the State under section 204
of such Act is to be reduced for such week as a result
of such order.
‘‘(2) A reduction by a State in accordance with sub-
paragraph (A) shall not be considered as a failure to fulfill
1144
Title XIII
the requirements of section 3304(a)(11) of the Internal
Revenue Code of 1986.
‘‘(i) FEDERAL
EMPLOYEES
HEALTH
BENEFITS
FUND.—For the Federal Employees Health Benefits
Fund, a sequestration order shall take effect with the next
open season. The sequestration shall be accomplished by
annual payments from that Fund to the General Fund of
the Treasury. Those annual payments shall be financed
solely by charging higher premiums. For purposes of sub-
section (b)(1), the sequestrable base for the Fund is the
budget-year level of gross outlays resulting from claims
paid after the sequestration order takes effect, and sub-
section (b)(2) shall not apply.
‘‘(j) FEDERAL HOUSING FINANCE BOARD.—Any se-
questration of the Federal Housing Finance Board shall
be accomplished by annual payments (by the end of each
fiscal year) from that Board to the general fund of the
Treasury, in amounts equal to the uniform sequestration
percentage for that year times the gross obligations of the
Board in that year.
‘‘(k) FEDERAL PAY.—
‘‘(1) IN GENERAL.—Except as provided in sec-
tion 10(b)(3), new budget authority to pay Federal
personnel from direct spending accounts shall be re-
duced by the uniform percentage calculated under
1145
Title XIII
section 264, as applicable, but no sequestration
order may reduce or have the effect of reducing the
rate of pay to which any individual is entitled under
any statutory pay system (as increased by any
amount payable under section 5304 of title 5, Unit-
ed States Code, or section 302 of the Federal Em-
ployees Pay Comparability Act of 1990) or the rate
of any element of military pay to which any individ-
ual is entitled under title 37, United States Code, or
any increase in rates of pay which is scheduled to
take effect under section 5303 of title 5, United
States Code, section 1009 of title 37, United States
Code, or any other provision of law.
‘‘(2) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) The term ‘statutory pay system’ shall
have the meaning given that term in section
5302(1) of title 5, United States Code.
‘‘(B) The term ‘elements of military pay’
means—
‘‘(i) the elements of compensation of
members of the uniformed services speci-
fied in section 1009 of title 37, United
States Code,
1146
Title XIII
‘‘(ii) allowances provided members of
the uniformed services under sections 403a
and 405 of such title, and
‘‘(iii) cadet pay and midshipman pay
under section 203(c) of such title.
‘‘(C) The term ‘uniformed services’ shall
have the meaning given that term in section
101(3) of title 37, United States Code.
‘‘(l) GUARANTEED STUDENT LOANS.—(A) For all
student loans under part B of title IV of the Higher Edu-
cation Act of 1965 made on or after the date of a seques-
tration, the origination fees shall be increased by a uni-
form percentage sufficient to produce the dollar savings
in student loan programs for the fiscal year of the seques-
tration required by section 264, and all subsequent origi-
nation fees shall be increased by the same percentage, not-
withstanding any other provision of law.
‘‘(B) The origination fees to which paragraph (A) ap-
plies are those specified in sections 428H(f)(1) and 438(c)
of that Act.
‘‘(m) INSURANCE PROGRAMS.—Any sequestration in
a Federal program that sells insurance contracts to the
public (including the Federal Crop Insurance Fund, the
National Insurance Development Fund, the National
Flood Insurance Fund, insurance activities of the Over-
1147
Title XIII
seas Private Insurance Corporation, and Veterans’ life in-
surance programs) shall be accomplished by annual pay-
ments from the insurance fund or account to the general
fund of the Treasury. The amount of each annual payment
by each such fund or account shall be the amount received
by the fund or account by increasing premiums on con-
tracts entered into after the date a sequestration order
takes effect by the uniform sequestration percentage, and
premiums shall be increased accordingly.
‘‘(n) MEDICAID.—The November 15th estimate of
medicaid spending by States shall be the base estimate
from which the uniform percentage reduction under any
sequestration, applied across-the-board by State, shall be
made. Succeeding Federal payments to States shall reflect
that reduction. The Health Care Financing Administra-
tion shall reconcile actual medicaid spending for each fis-
cal year with the base estimate as reduced by the uniform
percentage, and adjust each State’s grants as soon as
practicable, but no later than 100 days after the end of
the fiscal year to which the base estimate applied, to com-
ply with the sequestration order.
‘‘(o) MEDICARE.—
‘‘(1) TIMING
OF
APPLICATION
OF
REDUC-
TIONS.—
1148
Title XIII
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), if a reduction is made in
payment amounts pursuant to a sequestration
order, the reduction shall be applied to payment
for services furnished after the effective date of
the order. For purposes of the previous sen-
tence, in the case of inpatient services furnished
for an individual, the services shall be consid-
ered to be furnished on the date of the individ-
ual’s discharge from the inpatient facility.
‘‘(B) PAYMENT ON THE BASIS OF COST
REPORTING
PERIODS.—In the case in which
payment for services of a provider of services is
made under title XVIII of the Social Security
Act on a basis relating to the reasonable cost
incurred for the services during a cost reporting
period of the provider, if a reduction is made in
payment amounts pursuant to a sequestration
order, the reduction shall be applied to payment
for costs for such services incurred at any time
during each cost reporting period of the pro-
vider any part of which occurs after the effec-
tive date of the order, but only (for each such
cost reporting period) in the same proportion as
1149
Title XIII
the fraction of the cost reporting period that oc-
curs after the effective date of the order.
‘‘(2) NO INCREASE IN BENEFICIARY CHARGES
IN ASSIGNMENT-RELATED CASES.—If a reduction in
payment amounts is made pursuant to a sequestra-
tion order for services for which payment under part
B of title XVIII of the Social Security Act is made
on the basis of an assignment described in section
1842(b)(3)(B)(ii), 
in 
accordance 
with 
section
1842(b)(6)(B), or under the procedure described in
section 1870(f)(1) of such Act, the person furnishing
the services shall be considered to have accepted
payment of the reasonable charge for the services,
less any reduction in payment amount made pursu-
ant to a sequestration order, as payment in full.
‘‘(p) POSTAL SERVICE FUND.—Any sequestration of
the Postal Service Fund shall be accomplished by annual
payments from that Fund to the General Fund of the
Treasury, and the Postmaster General of the United
States shall have the duty to make those payments during
the fiscal year to which the sequestration order applies
and each succeeding fiscal year. The amount of each an-
nual payment shall be—
‘‘(1) the uniform sequestration percentage,
times
1150
Title XIII
‘‘(2) the estimated gross obligations of the
Postal Service Fund in that year other than those
obligations financed with an appropriation for reve-
nue foregone for that year.
Any such payment for a fiscal year shall be made as soon
as possible during the fiscal year, except that it may be
made in installments within that year if the payment
schedule is approved by the Secretary of the Treasury.
Within 30 days after the sequestration order is issued, the
Postmaster General shall submit to the Postal Rate Com-
mission a plan for financing the annual payment for that
fiscal year and publish that plan in the Federal Register.
The plan may assume efficiencies in the operation of the
Postal Service, reductions in capital expenditures, in-
creases in the prices of services, or any combination, but
may not assume a lower Fund surplus or higher Fund
deficit and must follow the requirements of existing law
governing the Postal Service in all other respects. Within
30 days of the receipt of that plan, the Postal Rate Com-
mission shall approve the plan or modify it in the manner
that modifications are allowed under current law. If the
Postal Rate Commission does not respond to the plan
within 30 days, the plan submitted by the Postmaster
General shall go into effect. Any plan may be later revised
1151
Title XIII
by the submission of a new plan to the Postal Rate Com-
mission, which may approve or modify it.
‘‘(q) POWER MARKETING ADMINISTRATIONS
AND
T.V.A.—Any sequestration of the Department of Energy
power marketing administration funds or the Tennessee
Valley Authority fund shall be accomplished by annual
payments from those funds to the General Fund of the
Treasury, and the administrators of those funds shall have
the duty to make those payments during the fiscal year
to which the sequestration order applies and each succeed-
ing fiscal year. The amount of each annual payment by
a fund shall be—
‘‘(1) the uniform sequestration percentage,
times
‘‘(2) the estimated gross obligations of the fund
in that year.
Any such payment for a fiscal year shall be made as soon
as possible during the fiscal year, except that it may be
made in installments within that year if the payment
schedule is approved by the Secretary of the Treasury. An-
nual payments by a fund may be financed by reductions
in costs required to produce the presequester amount of
power (but those reductions shall not include reductions
in the amount of power supplied by the fund), by reduc-
tions in capital expenditures, by increases in rates, or by
1152
Title XIII
any combination, but may not be financed by a lower fund
surplus or a higher fund deficit and must follow the re-
quirements of existing law governing the fund in all other
respects. The administrator of a fund or the TVA Board
is authorized to take the actions specified above in order
to make the annual payments to the Treasury.
‘‘(r) VETERANS’ HOUSING LOANS.—(1) For all hous-
ing loans guaranteed, insured, or made under chapter 37
of title 38, United States Code, on or after the date of
a sequestration, the origination fees shall be increased by
a uniform percentage sufficient to produce the dollar sav-
ings in veterans’ housing programs for the fiscal year of
the sequestration required by section 264, and all subse-
quent origination fees shall be increased by the same per-
centage, notwithstanding any other provision of law.
‘‘(2) The origination fees to which paragraph (1) ap-
plies are those referred to in section 3729 of title 38, Unit-
ed States Code.’’.
(b) CONFORMING CHANGES.—(1) The item relating
to section 254 in the table of sections set forth in section
200 of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 is amended to read as follows:
‘‘Sec. 254. Estimating assumptions, reports, and orders.’’.
(2) The item relating to section 256 in the table of
sections set forth in section 200 of the Balanced Budget
1153
Title XIII
and Emergency Deficit Control Act of 1985 is amended
to read as follows:
‘‘Sec. 256. General and special sequestration rules.’’.
(c) Within 30 days after the date of enactment of
this Act, the Director of the Office of Management and
Budget and the Director of the Congressional Budget Of-
fice shall each issue a report that includes projections of
Federal spending, revenues, and deficits as a result of en-
actment of this Act and setting forth the economic and
technical assumptions used to make those projections.
Subtitle F—Line Item Veto
SEC. 14501. LINE ITEM VETO AUTHORITY.
(a) IN GENERAL.—Notwithstanding the provisions of
part B of title X of the Congressional Budget and Im-
poundment Control Act of 1974, and subject to the provi-
sions of this section, the President may rescind all or part
of the dollar amount of any discretionary budget authority
specified in an appropriation Act for fiscal year 1996 or
conference report or joint explanatory statement accom-
panying a conference report on the Act, or veto any tar-
geted tax benefit provision in this reconciliation Act, if the
President—
(1) determines that—
(A) such rescission or veto would help re-
duce the Federal budget deficit;
1154
Title XIII
(B) such rescission or veto will not impair
any essential Government functions; and
(C) such rescission or veto will not harm
the national interest; and
(2) notifies the Congress of such rescission or
veto by a special message not later than 10 calendar
days (not including Sundays) after the date of the
enactment of an appropriation Act providing such
budget authority, or of this reconciliation Act in the
case of a targeted tax benefit.
(b) DEFICIT REDUCTION.—In each special message,
the President may also propose to reduce the appropriate
discretionary spending limit set forth in section 601(a)(2)
of the Congressional Budget Act of 1974 by an amount
that does not exceed the total amount of discretionary
budget authority rescinded by that message.
(c) SEPARATE MESSAGES.—The President shall sub-
mit a separate special message under this section for each
appropriation Act and for this reconciliation Act.
(d) LIMITATION.—No special message submitted by
the President under this section may change any prohibi-
tion or limitation of discretionary budget authority set
forth in any appropriation Act.
(e) SPECIAL RULE FOR PREVIOUSLY ENACTED AP-
PROPRIATION ACTS.—Notwithstanding subsection (a)(2),
1155
Title XIII
in the case of any unobligated discretionary budget au-
thority provided by any appropriation Act for fiscal year
1996 that is enacted before the date of the enactment of
this Act, the President may rescind all or part of that dis-
cretionary budget authority under the terms of this sub-
title if the President notifies the Congress of such rescis-
sion by a special message not later than 10 calendar days
(not including Sundays) after the date of the enactment
of this Act.
SEC. 14502. LINE ITEM VETO EFFECTIVE UNLESS DIS-
APPROVED.
(a) IN GENERAL.—
(1) Any amount of budget authority rescinded
under this subtitle as set forth in a special message
by the President shall be deemed canceled unless,
during the period described in subsection (b), a re-
scission/receipts disapproval bill making available all
of the amount rescinded is enacted into law.
(2) Any provision of law vetoed under this sub-
title as set forth in a special message by the Presi-
dent shall be deemed repealed unless, during the pe-
riod described in subsection (b), a rescission/receipts
disapproval bill restoring that provision is enacted
into law.
1156
Title XIII
(b) CONGRESSIONAL REVIEW PERIOD.—The period
referred to in subsection (a) is—
(1) a congressional review period of 20 calendar
days of session, beginning on the first calendar day
of session after the date of submission of the special
message, during which Congress must complete ac-
tion on the rescission/receipts disapproval bill and
present such bill to the President for approval or
disapproval;
(2) after the period provided in paragraph (1),
an additional 10 days (not including Sundays) dur-
ing which the President may exercise his authority
to sign or veto the rescission/receipts disapproval
bill; and
(3) if the President vetoes the rescission/re-
ceipts disapproval bill during the period provided in
paragraph (2), an additional 5 calendar days of ses-
sion after the date of the veto.
(c) SPECIAL RULE.—If a special message is transmit-
ted by the President under this subtitle and the last ses-
sion of the Congress adjourns sine die before the expira-
tion of the period described in subsection (b), the rescis-
sion or veto, as the case may be, shall not take effect.
The message shall be deemed to have been retransmitted
on the first Monday in February of the succeeding Con-
1157
Title XIII
gress and the review period referred to in subsection (b)
(with respect to such message) shall run beginning after
such first day.
SEC. 14503. DEFINITIONS.
As used in this subtitle:
(1) The term ‘‘rescission/receipts disapproval
bill’’ means a bill which only disapproves, in whole,
rescissions of discretionary budget authority or only
disapproves vetoes of targeted tax benefits in a spe-
cial message transmitted by the President under this
subtitle and—
(A)(i) in the case of a special message re-
garding rescissions, the matter after the enact-
ing clause of which is as follows: ‘‘That Con-
gress disapproves each rescission of discre-
tionary budget authority of the President as
submitted by the President in a special message
on llll.’’, the blank space being filled in
with the appropriate date and the public law to
which the message relates; and
(ii) in the case of a special message re-
garding vetoes of targeted tax benefits, the
matter after the enacting clause of which is as
follows: ‘‘That Congress disapproves each veto
of targeted tax benefits of the President as sub-
1158
Title XIII
mitted by the President in a special message on
llll.’’, the blank space being filled in with
the appropriate date and the public law to
which the message relates; and
(B) the title of which is as follows: ‘‘A bill
to disapprove the recommendations submitted
by the President on llll.’’, the blank
space being filled in with the date of submission
of the relevant special message and the public
law to which the message relates.
(2) The term ‘‘calendar days of session’’ shall
mean only those days on which both Houses of Con-
gress are in session.
(3) The term ‘‘targeted tax benefit’’ means any
provision of this reconciliation Act determined by the
President to provide a Federal tax deduction, credit,
exclusion, preference, or other concession to 100 or
fewer beneficiaries. Any partnership, limited partner-
ship, trust, or S corporation, and any subsidiary or
affiliate of the same parent corporation, shall be
deemed and counted as a single beneficiary regard-
less of the number of partners, limited partners,
beneficiaries, shareholders, or affiliated corporate en-
tities.
1159
Title XIII
(4) The term ‘‘appropriation Act’’ means any
general or special appropriation Act for fiscal year
1996, and any Act or joint resolution making sup-
plemental, deficiency, or continuing appropriations
for fiscal year 1996.
SEC. 14504. CONGRESSIONAL CONSIDERATION OF LINE
ITEM VETOES.
(a) PRESIDENTIAL SPECIAL MESSAGE.—Whenever
the President rescinds any budget authority as provided
in this subtitle or vetoes any provision of law as provided
in this subtitle, the President shall transmit to both
Houses of Congress a special message specifying—
(1) the amount of budget authority rescinded or
the provision vetoed;
(2) any account, department, or establishment
of the Government to which such budget authority
is available for obligation, and the specific project or
governmental functions involved;
(3) the reasons and justifications for the deter-
mination to rescind budget authority or veto any
provision pursuant to this subtitle;
(4) to the maximum extent practicable, the esti-
mated fiscal, economic, and budgetary effect of the
rescission or veto; and
1160
Title XIII
(5) all actions, circumstances, and consider-
ations relating to or bearing upon the rescission or
veto and the decision to effect the rescission or veto,
and to the maximum extent practicable, the esti-
mated effect of the rescission upon the objects, pur-
poses, and programs for which the budget authority
is provided.
(b) TRANSMISSION OF MESSAGES TO HOUSE AND
SENATE.—
(1) Each special message transmitted under
this subtitle shall be transmitted to the House of
Representatives and the Senate on the same day,
and shall be delivered to the Clerk of the House of
Representatives if the House is not in session, and
to the Secretary of the Senate if the Senate is not
in session. Each special message so transmitted shall
be referred to the appropriate committees of the
House of Representatives and the Senate. Each such
message shall be printed as a document of each
House.
(2) Any special message transmitted under this
subtitle shall be printed in the first issue of the Fed-
eral Register published after such transmittal.
(c) INTRODUCTION OF RESCISSION/RECEIPTS DIS-
APPROVAL BILLS.—The procedures set forth in subsection
1161
Title XIII
(d) shall apply to any rescission/receipts disapproval bill
introduced in the House of Representatives not later than
the third calendar day of session beginning on the day
after the date of submission of a special message by the
President under this subtitle.
(d) CONSIDERATION IN THE HOUSE OF REPRESENT-
ATIVES.—
(1) The committee of the House of Representa-
tives to which a rescission/receipts disapproval bill is
referred shall report it without amendment, and with
or without recommendation, not later than the
eighth calendar day of session after the date of its
introduction. If the committee fails to report the bill
within that period, it is in order to move that the
House discharge the committee from further consid-
eration of the bill. A motion to discharge may be
made only by an individual favoring the bill (but
only after the legislative day on which a Member an-
nounces to the House the Member’s intention to do
so). The motion is highly privileged. Debate thereon
shall be limited to not more than one hour, the time
to be divided in the House equally between a pro-
ponent and an opponent. The previous question shall
be considered as ordered on the motion to its adop-
tion without intervening motion. A motion to recon-
1162
Title XIII
sider the vote by which the motion is agreed to or
disagreed to shall not be in order.
(2) After a rescission/receipts disapproval bill is
reported or the committee has been discharged from
further consideration, it is in order to move that the
House resolve into the Committee of the Whole
House on the State of the Union for consideration
of the bill. All points of order against the bill and
against consideration of the bill are waived. The mo-
tion is highly privileged. The previous question shall
be considered as ordered on that motion to its adop-
tion without intervening motion. A motion to recon-
sider the vote by which the motion is agreed to or
disagreed to shall not be in order. During consider-
ation of the bill in the Committee of the Whole, the
first reading of the bill shall be dispensed with. Gen-
eral debate shall proceed without intervening motion,
shall be confined to the bill, and shall not exceed two
hours equally divided and controlled by a proponent
and an opponent of the bill. No amendment to the
bill is in order, except any Member may move to
strike the disapproval of any rescission or rescissions
of budget authority or any proposed repeal of a tar-
geted tax benefit, as applicable, if supported by 49
other Members. At the conclusion of the consider-
1163
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ation of the bill for amendment, the Committee shall
rise and report the bill to the House. The previous
question shall be considered as ordered on the bill
and amendments thereto to final passage without in-
tervening motion. A motion to reconsider the vote on
passage of the bill shall not be in order.
(3) Appeals from the decisions of the Chair re-
lating to the application of the rules of the House
of Representatives to the procedure relating to a bill
described in subsection (a) shall be decided without
debate.
(4) It shall not be in order to consider more
than one bill described in subsection (c) or more
than one motion to discharge described in paragraph
(1) with respect to a particular special message.
(5) Consideration of any rescission/receipts dis-
approval bill under this subsection is governed by
the rules of the House of Representatives except to
the extent specifically provided by the provisions of
this subtitle.
(e) CONSIDERATION IN THE SENATE.—
(1) Any rescission/receipts disapproval bill re-
ceived in the Senate from the House shall be consid-
ered in the Senate pursuant to the provisions of this
subtitle.
1164
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(2) Debate in the Senate on any rescission/re-
ceipts disapproval bill and debatable motions and ap-
peals in connection therewith, shall be limited to not
more than ten hours. The time shall be equally di-
vided between, and controlled by, the majority leader
and the minority leader or their designees.
(3) Debate in the Senate on any debatable mo-
tions or appeal in connection with such bill shall be
limited to one hour, to be equally divided between,
and controlled by the mover and the manager of the
bill, except that in the event the manager of the bill
is in favor of any such motion or appeal, the time
in opposition thereto shall be controlled by the mi-
nority leader or his designee. Such leaders, or either
of them, may, from the time under their control on
the passage of the bill, allot additional time to any
Senator during the consideration of any debatable
motion or appeal.
(4) A motion to further limit debate is not de-
batable. A motion to recommit (except a motion to
recommit with instructions to report back within a
specified number of days not to exceed one, not
counting any day on which the Senate is not in ses-
sion) is not in order.
(f) POINTS OF ORDER.—
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(1) It shall not be in order in the Senate to
consider any rescission/receipts disapproval bill that
relates to any matter other than the rescission of
budget authority or veto of the provision of law
transmitted by the President under this subtitle.
(2) It shall not be in order in the Senate to
consider any amendment to a rescission/receipts dis-
approval bill.
(3) Paragraphs (1) and (2) may be waived or
suspended in the Senate only by a vote of three-
fifths of the members duly chosen and sworn.
SEC. 14505. REPORT OF THE GENERAL ACCOUNTING OF-
FICE.
On January 6, 1997, the Comptroller General shall
submit a report to each House of Congress which provides
the following information:
(1) A list of each proposed Presidential rescis-
sion of discretionary budget authority and veto of a
targeted tax benefit submitted through special mes-
sages for fiscal year 1996, together with their dollar
value, and an indication of whether each rescission
of discretionary budget authority or veto of a tar-
geted tax benefit was accepted or rejected by Con-
gress.
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(2) The total number of proposed Presidential
rescissions of discretionary budget authority and ve-
toes of a targeted tax benefit submitted through spe-
cial messages for fiscal year 1996, together with
their total dollar value.
(3) The total number of Presidential rescissions
of discretionary budget authority or vetoes of a tar-
geted tax benefit submitted through special mes-
sages for fiscal year 1996 and approved by Con-
gress, together with their total dollar value.
(4) A list of rescissions of discretionary budget
authority initiated by Congress for fiscal year 1996,
together with their dollar value, and an indication of
whether each such rescission was accepted or re-
jected by Congress.
(5) The total number of rescissions of discre-
tionary budget authority initiated and accepted by
Congress for fiscal year 1996, together with their
total dollar value.
SEC. 14506. JUDICIAL REVIEW.
(a) EXPEDITED REVIEW.—
(1) Any Member of Congress may bring an ac-
tion, in the United States District Court for the Dis-
trict of Columbia, for declaratory judgment and in-
1167
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junctive relief on the ground that any provision of
this subtitle violates the Constitution.
(2) A copy of any complaint in an action
brought under paragraph (1) shall be promptly de-
livered to the Secretary of the Senate and the Clerk
of the House of Representatives, and each House of
Congress shall have the right to intervene in such
action.
(3) Any action brought under paragraph (1)
shall be heard and determined by a three-judge
court in accordance with section 2284 of title 28,
United States Code.
(4) Nothing in this section or in any other law
shall infringe upon the right of the House of Rep-
resentatives to intervene in an action brought under
paragraph (1) without the necessity of adopting a
resolution to authorize such intervention.
(b) APPEAL TO SUPREME COURT.—Notwithstanding
any other provision of law, any order of the United States
District Court for the District of Columbia which is issued
pursuant to an action brought under paragraph (1) of sub-
section (a) shall be reviewable by appeal directly to the
Supreme Court of the United States. Any such appeal
shall be taken by a notice of appeal filed within 10 days
after such order is entered; and the jurisdictional state-
1168
Title XIII
ment shall be filed within 30 days after such order is en-
tered. No stay of an order issued pursuant to an action
brought under paragraph (1) of subsection (a) shall be
issued by a single Justice of the Supreme Court.
(c) EXPEDITED CONSIDERATION.—It shall be the
duty of the District Court for the District of Columbia
and the Supreme Court of the United States to advance
on the docket and to expedite to the greatest possible ex-
tent the disposition of any matter brought under sub-
section (a).
Subtitle G—Enforcing Points of
Order
SEC. 14601. POINTS OF ORDER IN THE SENATE.
(a) WAIVER.—The second sentence of section 904(c)
of the Congressional Budget Act of 1974 is amended by
inserting ‘‘303(a),’’ after ‘‘302(f),’’, by inserting ‘‘311(c),’’
after ‘‘311(a),’’, by inserting ‘‘606(b),’’ after ‘‘601(b),’’,
and by inserting ‘‘253(d), 253(h), 253(i),’’ before
‘‘258(a)(4)(C)’’.
(b) APPEALS.—The third sentence of section 904(c)
of the Congressional Budget Act of 1974 is amended by
inserting ‘‘303(a),’’ after ‘‘302(f),’’, by inserting ‘‘311(c),’’
after ‘‘311(a),’’, by inserting ‘‘606(b),’’ after ‘‘601(b),’’,
and by inserting ‘‘253(d), 253(h), 253(i),’’ before
‘‘258(a)(4)(C)’’.
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SEC. 14602. POINTS OF ORDER IN THE HOUSE OF REP-
RESENTATIVES.
Section 904 of the Congressional Budget Act of 1974
is amended by redesignating subsection (d) as subsection
(e) and by inserting after subsection (c) the following new
subsection:
‘‘(d) In the House of Representatives, a separate vote
shall be required on that part of any resolution or order
that makes in order the waiver of any points of order re-
ferred to in subsection (c).’’.
Subtitle H—Deficit Reduction
Lock-box
SEC. 14701. DEFICIT REDUCTION LOCK-BOX PROVISIONS OF
APPROPRIATION MEASURES.
(a) DEFICIT REDUCTION LOCK-BOX PROVISIONS.—
Title III of the Congressional Budget Act of 1974 is
amended by adding at the end the following new section:
‘‘DEFICIT REDUCTION LOCK-BOX PROVISIONS OF
APPROPRIATION BILLS
‘‘SEC. 314. (a) Any appropriation bill that is being
marked up by the Committee on Appropriations (or a sub-
committee thereof) of either House shall contain a line
item entitled ‘Deficit Reduction Lock-box’.
‘‘(b) Whenever the Committee on Appropriations of
either House reports an appropriation bill, that bill shall
1170
Title XIII
contain a line item entitled ‘Deficit Reduction Account’
comprised of the following:
‘‘(1) Only in the case of any general appropria-
tion bill containing the appropriations for Treasury
and Postal Service (or resolution making continuing
appropriations (if applicable)), an amount equal to
the amounts by which the discretionary spending
limit for new budget authority and outlays set forth
in the most recent OMB sequestration preview re-
port pursuant to section 601(a)(2) exceed the sec-
tion 602(a) allocation for the fiscal year covered by
that bill.
‘‘(2) Only in the case of any general appropria-
tion bill (or resolution making continuing appropria-
tions (if applicable)), an amount not to exceed the
amount by which the appropriate section 602(b) al-
location of new budget authority exceeds the amount
of new budget authority provided by that bill (as re-
ported by that committee), but not less than the
sum of reductions in budget authority resulting from
adoption of amendments in the committee which
were designated for deficit reduction.
‘‘(3) Only in the case of any bill making supple-
mental appropriations following enactment of all
general appropriation bills for the same fiscal year,
1171
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an amount not to exceed the amount by which the
section 602(a) allocation of new budget authority ex-
ceeds the sum of all new budget authority provided
by appropriation bills enacted for that fiscal year
plus that supplemental appropriation bill (as re-
ported by that committee).
‘‘(c) It shall not be in order for the Committee on
Rules of the House of Representatives to report a resolu-
tion that restricts the offering of amendments to any ap-
propriation bill adjusting the level of budget authority con-
tained in a Deficit Reduction Account.
‘‘(d) Whenever a Member of either House of Congress
offers an amendment (whether in subcommittee, commit-
tee, or on the floor) to an appropriation bill to reduce
spending, that reduction shall be placed in the deficit re-
duction lock-box unless that Member indicates that it is
to be utilized for another program, project, or activity cov-
ered by that bill. If the amendment is agreed to and the
reduction was placed in the deficit reduction lock-box, then
the line item entitled ‘Deficit Reduction Lock-box’ shall
be increased by the amount of that reduction. Any amend-
ment pursuant to this subsection shall be in order even
if amendment portions of the bill are not read for amend-
ment with respect to the Deficit Reduction Lock-box.
1172
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‘‘(e) It shall not be in order in the House of Rep-
resentatives or the Senate to consider a conference report
or amendment of the Senate that modifies any Deficit Re-
duction Lock-box provision that is beyond the scope of
that provision as so committed to the conference commit-
tee.
‘‘(f) It shall not be in order to offer an amendment
increasing the Deficit Reduction Lock-box Account unless
the amendment increases rescissions or reduces appropria-
tions by an equivalent or larger amount, except that it
shall be in order to offer an amendment increasing the
amount in the Deficit Reduction Lock-box by the amount
that the appropriate 602(b) allocation of new budget au-
thority exceeds the amount of new budget authority pro-
vided by that bill.
‘‘(g) It shall not be in order for the Committee on
Rules of the House of Representatives to report a resolu-
tion which waives subsection (c).’’.
(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 in-
serting after the item relating to section 313 the following
new item:
‘‘Sec. 314. Deficit reduction lock-box provisions of appropriation measures.’’.
1173
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SEC. 14702. DOWNWARD ADJUSTMENTS.
(a) DOWNWARD ADJUSTMENTS.—The discretionary
spending limit for new budget authority for any fiscal year
set forth in section 601(a)(2) of the Congressional Budget
Act of 1974, as adjusted in strict conformance with sec-
tion 251 of the Balanced Budget and Emergency Deficit
Control Act of 1985, shall be reduced by the amount of
budget authority transferred to the Deficit Reduction
Lockbox for that fiscal year under section 314 of the
Budget Control and Impoundment Act of 1974. The ad-
justed discretionary spending limit for outlays for that fis-
cal year and each outyear as set forth in such section
601(a)(2) shall be reduced as a result of the reduction
of such budget authority, as calculated by the Director of
the Office of Management and Budget based upon such
programmatic and other assumptions set forth in the joint
explanatory statement of managers accompanying the con-
ference report on that bill. All such reductions shall occur
within ten days of enactment of any appropriations bill.
(b) DEFINITION.—As used in this section, the term
‘‘appropriation bill’’ means any general or special appro-
priation bill, and any bill or joint resolution making sup-
plemental, deficiency, or continuing appropriations.
(c) RESCISSION.—Funds in the Deficit Reduction
Lockbox shall be rescinded upon reductions in discre-
tionary limits pursuant to subsection (a).
1174
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SEC. 14703. CBO TRACKING.
Section 202 of the Congressional Budget Act of 1974
is amended by adding at the end the following new sub-
section:
‘‘(i) SCOREKEEPING.—To facilitate compliance by the
Committee on Appropriations with section 314, the Office
shall score all general appropriation measures (including
conference reports) as passed by the House of Representa-
tives, as passed the Senate and as enacted into law. The
scorecard shall include amounts contained in the Deficit
Reduction Lock-Box. The chairman of the Committee on
Appropriations of the House of Representatives or the
Senate, as the case may be, shall have such scorecard pub-
lished in the Congressional Record.’’.
Subtitle I—Emergency Spending;
Baseline 
Reform; 
Continuing
Resolutions Reform
CHAPTER 1—EMERGENCY SPENDING
SEC. 14801. ESTABLISHMENT OF BUDGET RESERVE AC-
COUNT.
(a) ESTABLISHMENT.—A budget reserve account
(hereinafter in this section referred to as the ‘‘account’’)
shall be established for the purpose of setting aside ade-
quate funding for natural disasters and national security
emergencies.
1175
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(b) PRIOR APPROPRIATION REQUIRED.—The ac-
count shall consist of such sums as may be provided in
advance in appropriation Acts for a particular fiscal year.
(c) RESTRICTION ON USE OF FUNDS.—(1) Notwith-
standing any other provision of law, the amounts in the
account shall not be available for other than emergency
funding requirements for particular natural disasters or
national security emergencies so designated by Acts of
Congress.
(2) Funds in the account that are not obligated dur-
ing the fiscal year for which they are appropriated may
only be used for deficit reduction purposes.
(d) NEW POINT OF ORDER.—(1) Title IV of the Con-
gressional Budget Act of 1974 is amended by adding at
the end the following new section:
‘‘POINT OF ORDER REGARDING EMERGENCIES
‘‘SEC. 408. It shall not be in order in the House of
Representatives or the Senate to consider any bill or joint
resolution, or amendment thereto or conference report
thereon, containing an emergency designation for purposes
of section 251(b)(2)(D) or 252(e) of the Balanced Budget
and Emergency Deficit Control Act of 1985 if it also pro-
vides an appropriation or direct spending for any other
item or contains any other matter, but that bill or joint
resolution, amendment, or conference report may contain
rescissions of budget authority or reductions of direct
1176
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spending, or that amendment may reduce amounts for
that emergency.’’.
(2) The table of contents set forth in section 1(b) of
the Congressional Budget and Impoundment Control Act
of 1974 is amended by inserting after the item relating
to section 407 the following new item:
‘‘Sec. 408. Point of order regarding emergencies.’’.
SEC. 14802. CONGRESSIONAL BUDGET PROCESS CHANGES.
(a) CONTENTS
OF
JOINT RESOLUTIONS
ON
THE
BUDGET.—Section 301(a) of the Congressional Budget
Act of 1974 is amended by redesignating paragraphs (6)
and (7) as paragraphs (7) and (8), respectively, and by
inserting after paragraph (5) the following new paragraph:
‘‘(6) total new budget authority and total
budget outlays for emergency funding requirements
for natural disasters and national security emer-
gencies to be included in a budget reserve account;’’.
(b) SECTION 602 ALLOCATIONS.—(1) Section 602 of
the Congressional Budget Act of 1974 is amended by add-
ing at the end the following new subsection:
‘‘(f) COMMITTEE
SPENDING
ALLOCATIONS
AND
SUBALLOCATIONS FOR BUDGET RESERVE ACCOUNT.—
‘‘(1) ALLOCATIONS.—The joint explanatory
statement accompanying a conference report on a
budget resolution shall include allocations, consistent
with the resolution recommended in the conference
1177
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report, of the appropriate levels (for each fiscal year
covered by that resolution) of total new budget au-
thority and outlays to the Committee on Appropria-
tions of each House for emergency funding require-
ments for natural disasters and national security
emergencies to be included in a budget reserve
account.
‘‘(2) SUBALLOCATIONS.—As soon as practicable
after a budget resolution is agreed to, the Commit-
tee on Appropriations of each House (after consult-
ing with the Committee on Appropriations of the
other House) shall suballocate each amount allocated
to it for the budget year under paragraph (1) among
its subcommittees. Each Committee on Appropria-
tions 
shall 
promptly 
report 
to 
its 
House
suballocations 
made 
or 
revised 
under 
this
paragraph.’’.
(2) Section 602(c) of the Congressional Budget Act
of 1974 is amended by inserting ‘‘or subsection (f)(1)’’
after ‘‘subsection (a)’’ and by inserting ‘‘or subsection
(f)(2)’’ after ‘‘subsection (b)’’.
SEC. 14803. REPORTING.
Not later than November 30, 1996, and at annual
intervals thereafter, the Director of the Office of Manage-
ment and Budget shall submit a report to each House of
1178
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Congress listing the amounts of money expended from the
budget reserve account established under section 1 for the
fiscal year ending during that calendar year for each natu-
ral disaster and national security emergency.
CHAPTER 2—BASELINE REFORM
SEC. 14851. THE BASELINE.
(a) The second sentence of section 257(c) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
is amended—
(1) by inserting ‘‘but only for the purpose of
adjusting the discretionary spending limits set forth
in section 601(a)(2) of the Congressional Budget
Act of 1974’’ after ‘‘for inflation as specified in
paragraph (5)’’; and
(2) by inserting ‘‘but only for the purpose of
adjusting the discretionary spending limits set forth
in section 601(a)(2) of the Congressional Budget
Act of 1974’’ after ‘‘to offset pay absorption and for
pay annualization as specified in paragraph (4)’’.
(b) Section 1109(a) of title 31, United States Code,
is amended by adding after the first sentence the following
new sentence: ‘‘These estimates shall not include an ad-
justment for inflation for programs and activities subject
to discretionary appropriations.’’.
1179
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SEC. 14852. THE PRESIDENT’S BUDGET.
(a) Paragraph (5) of section 1105(a) of title 31,
United States Code, is amended to read as follows:
‘‘(5) except as provided in subsection (b) of this
section, estimated expenditures and appropriations
for the current year and estimated expenditures and
proposed appropriations the President decides are
necessary to support the Government in the fiscal
year for which the budget is submitted and the 4 fis-
cal years following that year;’’.
(b) Section 1105(a)(6) of title 31, United States
Code, is amended by inserting ‘‘current fiscal year and
the’’ before ‘‘fiscal year’’.
(c) Section 1105(a)(12) of title 31, United States
Code, is amended by striking ‘‘and’’ at the end of subpara-
graph (A), by striking the period and inserting ‘‘; and’’
at the end of subparagraph (B), and by adding at the end
the following new subparagraph:
‘‘(C) the estimated amount for the same activ-
ity (if any) in the current fiscal year.’’.
(d) Section 1105(a)(18) of title 31, United States
Code, is amended by inserting ‘‘new budget authority
and’’ before ‘‘budget outlays’’.
(e) Section 1105(a) of title 31, United States Code,
is amended by adding at the end the following new para-
graph:
1180
Title XIII
‘‘(30) a comparison of levels of estimated ex-
penditures and proposed appropriations for each
function and subfunction in the current fiscal year
and the fiscal year for which the budget is submit-
ted, along with the proposed increase or decrease of
spending in percentage terms for each function and
subfunction.’’.
SEC. 14853. THE CONGRESSIONAL BUDGET.
Section 301(e) of the Congressional Budget Act of
1974 is amended by—
(1) inserting after the second sentence the fol-
lowing: ‘‘The starting point for any deliberations in
the Committee on the Budget of each House on the
joint resolution on the budget for the next fiscal year
shall be the estimated level of outlays for the current
year in each function and subfunction. Any increases
or decreases in the congressional budget for the next
fiscal year shall be from such estimated levels.’’; and
(2) striking paragraph (8) and redesignating
paragraphs (9) and (10) as paragraphs (10) and
(11), respectively, and by inserting after paragraph
(7) the following new paragraphs:
‘‘(8) a comparison of levels for the current fis-
cal year with proposed spending and revenue levels
for the subsequent fiscal years along with the pro-
1181
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posed increase or decrease of spending in percentage
terms for each function and subfunction; and
‘‘(9) information, data, and comparisons indi-
cating the manner in which and the basis on which,
the committee determined each of the matters set
forth in the joint resolution;’’.
SEC. 14854. CONGRESSIONAL BUDGET OFFICE REPORTS TO
COMMITTEES.
(a) The first sentence of section 202(f)(1) of the Con-
gressional Budget Act of 1974 is amended to read as fol-
lows: ‘‘On or before February 15 of each year, the Direc-
tor shall submit to the Committees on the Budget of the
House of Representatives and the Senate a report for the
fiscal year commencing on October 1 of that year with
respect to fiscal policy, including (A) alternative levels of
total revenues, total new budget authority, and total out-
lays (including related surpluses and deficits) compared
to comparable levels for the current year and (B) the levels
of tax expenditures under existing law, taking into account
projected economic factors and any changes in such levels
based on proposals in the budget submitted by the Presi-
dent for such fiscal year.’’.
(b) Section 202(f)(1) of the Congressional Budget
Act of 1974 is amended by inserting after the first sen-
tence the following new sentence: ‘‘That report shall also
1182
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include a table on sources of spending growth in total
mandatory spending for the budget year and the ensuing
4 fiscal years, which shall include changes in outlays at-
tributable to the following: cost-of-living adjustments;
changes in the number of program recipients; increases
in medical care prices, utilization and intensity of medical
care; and residual factors.’’.
(c) Section 308(a)(1) of the Congressional Budget
Act of 1974 is amended—
(1) in subparagraph (C), by inserting ‘‘, and
shall include a comparison of those levels to com-
parable levels for the current fiscal year’’ before ‘‘if
timely submitted’’; and
(2) by striking ‘‘and’’ at the end of subpara-
graph (C), by striking the period and inserting ‘‘;
and’’ at the end of subparagraph (D), and by adding
at the end the following new subparagraph:
‘‘(E) comparing the levels in existing pro-
grams in such measure to the estimated levels
for the current fiscal year.’’
(d) Title IV of the Congressional Budget Act of 1974
is amended by adding at the end the following new section:
‘‘GAO REPORTS TO BUDGET COMMITTEES
(a) ‘‘SEC. 408. On or before January 15 of each year,
the Comptroller General, after consultation with appro-
priate committees of the House of Representatives and
1183
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Senate, shall submit to the Congress a report listing all
programs, projects, and activities that fall within the defi-
nition of direct spending under section 250(c)(8) of the
Balanced Budget and Emergency Deficit Control Act of
1985.’’.
(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 in-
serting after the item relating to section 407 the following
new item:
‘‘Sec. 408. GAO reports to budget committees.’’.
CHAPTER 3—RESTRICTED USES OF
CONTINUING RESOLUTIONS
SEC. 14871. RESTRICTIONS RESPECTING CONTINUING RES-
OLUTIONS.
(a) Rule XXI of the Rules of the House of Represent-
atives is amended by adding at the end thereof the follow-
ing new clause:
‘‘9. (a) Any item of appropriation set forth in any
joint resolution continuing appropriations, or amendment
thereto, shall not exceed the rate it would have been at
assuming the continuation of current law.
‘‘(b) It shall not be in order in the House to consider
any joint resolution continuing appropriations, or amend-
ment thereto, which changes existing law.’’.
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Title XIII
(b) The amendment made by subsection (a) shall only
apply to joint resolutions continuing appropriations for fis-
cal year 1996 or any subsequent fiscal year.
Subtitle J—Technical and
Conforming Amendments
SEC. 14901. AMENDMENTS TO THE CONGRESSIONAL BUDG-
ET AND IMPOUNDMENT CONTROL ACT OF
1974.
(a) DEFINITION
OF BUDGET AUTHORITY.—Para-
graph (2) of section 3 of the Congressional Budget and
Impoundment Control Act of 1974, the second time it ap-
pears, is amended by inserting ‘‘in any form’’ after ‘‘prom-
issory notes’’, by inserting at the end of subparagraph (A)
the following new sentence: ‘‘Such term excludes trans-
actions classified as means of financing.’’, and by striking
‘‘With respect to’’ and all that follows through ‘‘retirement
account, any’’ and inserting ‘‘Any’’, by inserting after sub-
paragraph (B) the following:
‘‘(C) RELATIONSHIP TO ENTITLEMENT AU-
THORITY.—For purposes of titles III and IV,
all references to budget authority shall be con-
sidered to include the amount of budget author-
ity estimated to be needed to fund entitlement
provisions under existing or proposed law, and
all legislation increasing (or decreasing) the
1185
Title XIII
level of entitlement authority under existing law
shall be considered to provide (or decrease) new
budget authority in that amount.’’,
and by redesignating the next subparagraph accordingly.
(b) DEFINITION OF ENTITLEMENT AUTHORITY.—
Paragraph (9) of section 3 of the Congressional Budget
and Impoundment Control Act of 1974 is amended by
striking 
‘‘spending 
authority 
described 
by 
section
401(c)(2)(C)’’ and inserting the following: ‘‘, and the term
‘entitlement program’ refers to, any provision of law that
has the effect of requiring the Government to make net
payments (including intragovernmental payments) regard-
less of the amount of budget authority that may be avail-
able to make those payments. Those terms shall include
amounts estimated to be required under provisions of law
that depend on the fulfillment of non-legislative conditions
or are indefinite as to amount or timing. Except as pro-
vided in the next sentence, if a provision of law that other-
wise requires the Government to make net payments is
directly or indirectly limited by any other provision of law
to an amount of available budget authority, then entitle-
ment authority does not exist. Subchapter II of chapter
13 of title 31, United States Code, and the sequestration
provisions of the Balanced Budget and Emergency Deficit
Control Act of 1985 shall not be considered provisions of
1186
Title XIII
law that limit entitlement authority to the amount of avail-
able budget authority.’’
(c) DEFINITION OF MEANS OF FINANCING.—Section
3 of the Congressional Budget and Impoundment Control
Act of 1974 is amended by adding at the end the following
new paragraph:
‘‘(11) The term ‘means of financing’ means the
financial transactions of the Government that con-
sist of exchanges of money or monetary proxies of
equal value and therefore are not counted as obliga-
tions, outlays, or revenues, such as net Federal bor-
rowing from the public in any form, debt redemp-
tion, seignorage on coins and profits from the sale
of gold, and changes in outstanding check or other
monetary credits, including write-offs.’’.
(d) CBO STUDIES.—Section 202(h) of the Congres-
sional Budget Act of 1974 is amended by striking ‘‘out-
lays, credit authority,’’ and inserting ‘‘outlays’’.
(e) REQUIRED CONTENTS
OF BUDGET RESOLU-
TION.—Section 301(a) of the Congressional Budget Act
of 1974 is amended by striking ‘‘planning levels’’, by strik-
ing ‘‘two’’ and inserting ‘‘four’’, by striking ‘‘, budget out-
lays, direct loan obligations, and primary loan guarantee
commitments’’ both places it appears and inserting ‘‘and
outlays’’, by striking paragraphs (5), (6) and (7), by strik-
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ing the semicolon at the end of paragraph (4) and insert-
ing a period, by inserting ‘‘and’’ after the semicolon at
the end of paragraph (3), and by striking the last sen-
tence.
(f) TECHNICAL CORRECTION TO SECTION 301(e).—
Section 301(e) of the Congressional Budget Act of 1974
is amended by inserting ‘‘new’’ before ‘‘budget authority’’
in the second sentence.
(g) 
COMMITTEE
ALLOCATIONS
AND
SUBALLOCATIONS.—Section 602(a)(1)(B) of the Congres-
sional Budget Act of 1974 is amended by striking ‘‘com-
mittee.’’ and inserting ‘‘committee, except that new budget
authority and outlays for entitlement programs funded
through annual appropriations shall be allocated and
scored both to the Committee on Appropriations and to
the committee that authorized such programs.’’.
(h) COMMITTEE ALLOCATIONS.—Section 302 of the
Congressional Budget Act of 1974 is amended to read as
follows:
‘‘COMMITTEE ALLOCATIONS
‘‘SEC. 302. (a) REPORTS BY COMMITTEES.—As soon
as practicable after a joint resolution on the budget is en-
acted—
‘‘(1) the Committee on Appropriations of each
House shall, after consulting with the Committee on
Appropriations of the other House—
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‘‘(A) subdivide among its subcommittees
the allocation of budget outlays, new budget au-
thority, and new credit authority allocated to it
in the joint budget resolution;
‘‘(B) further subdivide the amount with re-
spect to each such subcommittee between con-
trollable amounts and all other amounts; and
‘‘(2) every other committee of the House and
Senate to which an allocation was made in such
joint budget resolution shall, after consulting with
the committee or committees of the other House to
which all or part of its allocation was made—
‘‘(A) subdivide such allocation among its
subcommittees or among programs over which
it has jurisdiction; and
‘‘(B) further subdivide the amount with re-
spect to each subcommittee or program between
controllable amounts and all other amounts.
Each such committee shall promptly report to its
House the subdivisions made by it pursuant to this
subsection.
‘‘(b) POINT OF ORDER.—It shall not be in order in
the House of Representatives or the Senate to consider
any bill or resolution, or amendment thereto, providing—
‘‘(1) new budget authority for a fiscal year;
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‘‘(2) new spending authority as described in
section 401(c)(2) for a fiscal year; or
‘‘(3) new credit authority for a fiscal year;
within the jurisdiction of any committee which has re-
ceived an appropriate allocation of such authority pursu-
ant to section 301(a)(6) for such fiscal year, unless and
until such committee makes the allocation of subdivisions
required by subsection (a), in connection with the most
recently enacted joint resolution on the budget for such
fiscal year.
‘‘(c) SUBSEQUENT JOINT RESOLUTIONS.—In the
case of a joint resolution on the budget referred to in sec-
tion 304, the subdivisions under subsection (a) shall be
required only to the extent necessary to take into account
revisions made in the most recently enacted joint resolu-
tion on the budget.
‘‘(d) ALTERATION OF ALLOCATIONS.—At any time
after a committee reports the subdivision required to be
made under subsection (a), such committee may report to
its House an alteration of such subdivision. Any alteration
of such subdivision must be consistent with any actions
already taken by its House on legislation within the com-
mittee’s jurisdiction.
‘‘(e) LEGISLATION SUBJECT TO POINT OF ORDER.—
After enactment of a joint resolution on the budget for
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a fiscal year, it shall not be in order in the House of Rep-
resentatives or the Senate to consider any bill, resolution,
or amendment providing new budget authority for such
fiscal year, new entitlement authority effective during such
fiscal year, or new credit authority for such fiscal year,
or 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 cause the appropriate allocation made pursuant to
section 301(a)(6) or subdivision made under subsection
(a) of this section for such fiscal year of new discretionary
budget authority, new entitlement authority, or new credit
authority, to be exceeded.
‘‘(f) DETERMINATIONS BY BUDGET COMMITTEES.—
For purposes of this section, the levels of new budget au-
thority, spending authority as described in section
401(c)(2), outlays and new credit authority for a fiscal
year, shall be determined on the basis of estimates made
by the Committee on the Budget of the House of Rep-
resentatives or the Senate, as the case may be.’’.
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(i) COST
ESTIMATES
AND
SCOREKEEPING
RE-
PORTS.—Section 308 of the Congressional Budget Act of
1974 is amended—
(1) in its title, by striking ‘‘, NEW SPENDING
AUTHORITY, OR NEW CREDIT AUTHORITY,’’;
(2) by striking ‘‘, new spending authority de-
scribed in section 401(c)(2), or new credit author-
ity,’’ the 3 times it appears;
(3) in subsection (a), by striking ‘‘in the reports
submitted’’, 
by 
inserting 
‘‘302(a) 
or’’ 
before
‘‘302(b)’’, in paragraph (1)(B) by striking ‘‘spending
authority’’ and everything that follows through
‘‘401(c)(2) which is’’ and inserting ‘‘budget author-
ity’’ and by striking ‘‘annual appropriations’’ and in-
serting ‘‘annual discretionary appropriations’’, and
in paragraph (1)(C) by striking ‘‘such budget au-
thority’’ and all that follows through ‘‘loan guaran-
tee commitments’’ and inserting ‘‘new budget au-
thority, outlays, or revenues’’; and
(4) in subsection (c), by adding ‘‘and’’ at the
end of paragraph (1), by striking ‘‘period;’’ and in-
serting ‘‘period.’’ at the end of paragraph (2), and
by striking paragraphs (3), (4), and (5).
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(j) TECHNICAL CORRECTION TO SECTION 312.—Sec-
tion 312 of the Congressional Budget Act of 1974 is
amended by inserting ‘‘(a)’’ after ‘‘312.’’.
(k) CONSIDERATION
OF LEGISLATION THAT HAS
NOT BEEN REPORTED.—Section 312 of the Congres-
sional Budget Act of 1974 is amended by inserting at the
end the following:
‘‘(c) CONSIDERATION OF LEGISLATION THAT HAS
NOT BEEN REPORTED.—In the House of Representatives,
any point of order under title III or IV that would lie
against consideration of a bill or joint resolution as re-
ported by a committee shall also lie against a motion to
consider legislation respecting which no report has been
filed.’’
(l) CONFORMING AMENDMENTS TO SECTION 313.—
Section 313 of the Congressional Budget Act of 1974 is
amended by striking ‘‘or section 258C’’ and everything
that follows through ‘‘Deficit Control Act of 1985’’, by
striking ‘‘; and (F)’’ and everything that follows through
‘‘310(g)’’, by redesignating the second subsection (c) and
subsection (d) as subsections (d) and (e), respectively, and
by striking ‘‘or (b)(1)(F),’’.
(m) BORROWING AND CONTRACT AUTHORITY.—Sec-
tion 401 of the Congressional Budget Act of 1974 is
amended
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(1) in subsection (a), by striking ‘‘new spending
authority described in subsection (c)(2)(A) or (B)’’
both times it appears and inserting ‘‘borrowing au-
thority or contract authority’’;
(2) by repealing subsections (b) and (c) and by
redesignating subsection (d) as subsection (b); and
(3) in subsection (b) (as redesignated), by strik-
ing ‘‘Subsections (a) and (b)’’ and inserting ‘‘Sub-
section (a)’’, by inserting ‘‘non-interest’’ before ‘‘re-
ceipts’’ in paragraph (1)(B), by repealing paragraph
(2), and by redesignating paragraph (3) as para-
graph (2).
(n) CREDIT AUTHORITY.—Section 402(a) of the Con-
gressional Budget Act of 1974 is amended by inserting
before the period the following: ‘‘, except that this provi-
sion shall not apply with respect to programs that, as of
August 15, 1992, provide credit authority as an entitle-
ment’’.
SEC. 14902. TECHNICAL AND CONFORMING AMENDMENTS
TO THE RULES OF THE HOUSE OF REP-
RESENTATIVES.
(a) MISCELLANEOUS CONFORMING AMENDMENT.—
Clause 4(h) of rule X of the Rules of the House of Rep-
resentatives is amended by striking ‘‘or section 602 (in
the case of fiscal years 1991 through 1995)’’.
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(b) REPEALER.—Rule XLIX of the Rules of the
House of Representatives is repealed.
SEC. 14903. PRESIDENT’S BUDGET.
(a) DEFINITIONS.—Section 1101 of title 31, United
States Code, is amended by adding at the end the follow-
ing:
‘‘(3) ‘Expenditures’ has the same meaning as
the term ‘outlays’ in the Balanced Budget and
Emergency Deficit Control Act of 1985.
‘‘(4) All other terms used herein or in the docu-
ments prepared hereunder shall have the meanings
set forth in the Balanced Budget and Emergency
Deficit Control Act of 1985.’’.
(b) BYRD AMENDMENT.—Section 1103 of title 31,
United States Code, is amended by striking ‘‘commitment
that budget’’ and inserting ‘‘commitment that, starting
with fiscal year 2002,’’.
(c) PRESIDENT’S
BUDGET
SUBMISSION.—Section
1105(a) of title 31, United States Code, is amended—
(1) in the first sentence by striking ‘‘On or
after the first Monday in January but not later than
the first Monday in February of each year’’ and in-
serting ‘‘On or before the first Monday in February
or the 21st calendar day beginning after the date
the Board of Estimates issues a report to the Presi-
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dent under section 254 of the Balanced Budget and
Emergency Deficit Control Act of 1985’’;
(2) in paragraph (15) by striking ‘‘section
301(a)(1)–(5)’’ and inserting ‘‘section 301(a)(1)–
(4);
(3) in paragraph (16) by striking ‘‘section
3(a)(3)’’ and inserting ‘‘section 3(3)’’; and
(4) by adding at the end the following new
paragraph:
‘‘(32) an analysis of the financial condition of
Government-sponsored enterprises and the financial
exposure of the Government, if any, posed by
them.’’.
(d) USE OF OFFICIAL ESTIMATES.—Section 1105(f)
of title 31, United States Code, is amended by inserting
at the end the following new sentence: ‘‘That budget shall
be consistent with the discretionary funding limit and the
direct spending and receipts deficit reduction requirement
for that year chosen by the Board of Estimates and shall
be based upon the major estimating assumptions chosen
by that Board.’’.
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Subtitle K—Truth in Legislating
SEC. 14951. IDENTITY, SPONSOR, AND COST OF CERTAIN
PROVISIONS REQUIRED TO BE REPORTED.
(a) IDENTITY, SPONSOR, AND COST.—Clause 4 of
rule X of the Rules of the House of Representatives is
amended by adding at the end thereof the following:
‘‘(j)(1) Except as provided by subparagraph (2), the
report or joint explanatory statement accompanying each
bill or joint resolution of a public character reported by
a committee or committee of conference shall contain, in
plain and understandable language—
‘‘(A) an identification of each provision (if any)
of the bill or joint resolution which benefits only 10
or fewer beneficiaries in any one of the following cat-
egories: persons, corporations, partnerships, institu-
tions, organizations, transactions, events, items of
property, projects, civil subdivisions within one or
more States, or issuances of bonds;
‘‘(B) the name of each beneficiary of such pro-
vision;
‘‘(C) the name of any Member or Members who
sponsored the inclusion of each such provision and
an indication of each such provision requested by
any agency, instrumentality, or officer of the United
States; and
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‘‘(D) an estimate by the Congressional Budget
Office or the Joint Committee on Taxation, which-
ever is appropriate, of the costs which would be in-
curred in carrying out such provision or any loss in
revenues resulting from such provision for the fiscal
year for which costs or loss in revenues, as the case
may be, first occurs and each of the next 5 fiscal
years.
‘‘(2)(A) Subparagraph (1) shall not apply with re-
spect to any provision of a bill or joint resolution or of
a conference report on a bill or joint resolution if the bene-
ficiary of such provision is the United States or any agen-
cy or instrumentality thereof.
‘‘(B) Subparagraph (1)(D) shall not apply with re-
spect to any provision of a bill or joint resolution or of
a conference report on a bill or joint resolution if the costs
which would be incurred in carrying out such provision
or any loss in revenues resulting from such provision are
identified clearly in the report or joint explanatory state-
ment accompanying such bill or joint resolution.
‘‘(3) It shall not be in order to consider any such bill
or joint resolution in the House if the report or joint ex-
planatory statement of the committee or committee of con-
ference which reported that bill or joint resolution does
not comply with subparagraph (1). The requirements of
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subparagraph (1) may be waived only upon a separate vote
directed solely to that subject.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to bills and joint resolutions re-
ported by a committee of the House of Representatives
after the date of enactment of this Act.
Æ