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‘‘(e) EXPIRATION OF CERTAIN SUPERMAJORITY VOT-
ING REQUIREMENTS.—Subsections (c)(2) and (d)(3) shall
expire on September 30, 2002.’’.
SEC. 1615. REPEAL OF SECTIONS 905 AND 906.
(a) REPEALER.—Sections 905 and 906 of the Congres-
sional Budget and Impoundment Control Act of 1974 are
repealed.
(b) CONFORMING AMENDMENTS.—The table of contents
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. 1616. AMENDMENTS TO SECTIONS 1022 AND 1024.
(a) SECTION 1022.—Section 1022(b)(1)(F) of Congres-
sional Budget and Impoundment Control Act of 1974 is
amended by striking ‘‘section 601’’ and inserting ‘‘section
251(c) the Balanced Budget and Emergency Deficit Control
Act of 1985’’.
(b) SECTION 1024.—Section 1024(a)(1)(B) of Congres-
sional Budget and Impoundment Control Act of 1974 is
amended by striking ‘‘section 601(a)(2)’’ and inserting
‘‘section 251(c) the Balanced Budget and Emergency Deficit
Control Act of 1985’’.
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SEC. 1617. AMENDMENT TO SECTION 1026.
Section 1026(7)(A)(iv) of the Congressional Budget
and Impoundment Control Act of 1974 is amended by strik-
ing ‘‘and’’ the second place it appears and inserting ‘‘or’’.
Subtitle B—Amendments to the Bal-
anced Budget and Emergency
Deficit Control Act of 1985
SEC. 1651. PURPOSE.
This subtitle extends discretionary spending limits and
pay-as-you-go requirements.
SEC. 1652. GENERAL STATEMENT AND DEFINITIONS.
(a) GENERAL STATEMENT.—Section 250(b) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
is amended by striking the first two sentences and inserting
the following: ‘‘This part provides 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 ap-
propriations as specified in the joint explanatory
statement accompanying a conference report on the
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Balanced Budget Act of 1997. New accounts or activi-
ties shall be categorized only after consultation with
the committees on Appropriations and the Budget of
the House of Representatives and the Senate and such
consultation shall include written communication to
such committees that affords such committees the op-
portunity to comment before official action is taken
with respect to new accounts or activities.’’;
(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 budget sub-
mission that are not included with that budget sub-
mission’’;
(4) in paragraph (14), by inserting ‘‘first 4’’ be-
fore ‘‘fiscal years’’ and by striking ‘‘1995’’ and insert-
ing ‘‘2006’’; and
(5) by striking paragraphs (17) and (20) and by
redesignating paragraphs (18), (19), and (21) as
paragraphs (17), (18), and (19), respectively.
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SEC. 1653. 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, and legal holidays)’’ after
‘‘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 sub-
paragraphs (B) and (C);
(5) in subsection (b)(1), as amended, by striking
the last sentence and inserting ‘‘Changes in concepts
and definitions may only be made after consultation
with the committees on Appropriations and the Budg-
et of the House of Representatives and the Senate and
such consultation shall include written communica-
tion to such committees that affords such committees
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the opportunity to comment before official action is
taken with respect to such changes.’’;
(6) 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 subparagraphs
(D), (F), and (H) as subparagraphs (A), (B), and
(C), respectively;
(7) in subsection (b)(2)(A), as redesignated, by
striking ‘‘(i)’’, by striking clause (ii), and by insert-
ing ‘‘fiscal’’ before ‘‘years’’;
(8) in subsection (b)(2)(B), as redesignated, by
striking everything after ‘‘the adjustment in outlays’’
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;
(9) in subsection (b)(2)(C)(i), as redesignated—
(A) 
in 
subclause 
(III) 
by 
striking
‘‘$245,000,000’’ and inserting ‘‘$290,000,000’’;
(B) 
in 
subclause 
(IV), 
by 
striking
‘‘$280,000,000’’ and inserting ‘‘$520,000,000’’;
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(C) 
in 
subclause 
(V), 
by 
striking
‘‘$317,500,000’’ and inserting ‘‘$520,000,000’’;
(D) 
in 
subclause 
(VI), 
by 
striking
‘‘$317,500,000’’ and inserting ‘‘$520,000,000’’;
and
(E) 
in 
subclause 
(VII), 
by 
striking
‘‘$317,000,000’’ and inserting ‘‘$520,000,000’’;
and
(10) by adding at the end of subsection (b)(2) the
following:
‘‘(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 dol-
lar equivalent, in terms of Special Drawing
Rights, of—
‘‘(i) an increase in the United States
quota as part of the International Monetary
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
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Bretton Woods Agreements Act, as amended
from time to time (New Arrangements to
Borrow).
‘‘(E) ALLOWANCE FOR INTERNATIONAL AR-
REARAGES.—
‘‘(i) ADJUSTMENTS.—If an appropria-
tions bill or joint resolution is enacted for
fiscal year 1998, 1999 or 2000 that includes
an appropriation for arrearages for inter-
national organizations, international peace-
keeping, 
and 
multilateral 
development
banks for that fiscal year, the adjustment
shall be the amount of budget authority in
such measure and the outlays flowing in all
fiscal years from such budget authority.
‘‘(ii) LIMITATIONS.—The total amount
of adjustments made pursuant to this sub-
paragraph shall not exceed $1,884,000,000
in budget authority.
‘‘(F) ALLOWANCES FOR TRANSPORTATION.—
‘‘(i) IN GENERAL.—If during the 105th
Congress, revenue increases or direct spend-
ing reductions creditable under section 252
are enacted for transportation reserve funds
as provided in sections 207, 207A, 208, or
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209 of House Concurrent Resolution 84
(105th Congress), OMB shall determine the
amount of the budget authority adjustment
for the applicable program for each fiscal
year through 2002.
‘‘(ii) 
ADJUSTMENTS.—If 
for 
fiscal
years 1998 through 2002, discretionary ap-
propriations are enacted for a fiscal year
that designates funding for the applicable
program, the adjustment is the amount of
the discretionary budget authority appro-
priated for such program in such fiscal year
and the outlays in all years flowing from
such discretionary budget authority, but not
to exceed the amount available for such pro-
gram pursuant to this subparagraph.
‘‘(iii) LIMITATIONS.—(I) Revenue in-
creases and direct spending reductions cred-
ited under this subparagraph shall be so
designated in statute and shall not be cred-
ited under section 252.
‘‘(II) The amount of the budget author-
ity adjustment determined for a fiscal year
under clause (ii) shall not exceed the
amount of the revenue increase or direct
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spending reduction credited for a fiscal year
under clause (i) and shall meet the terms
and conditions of sections 207, 207A, 208,
or 209 of House Concurrent Resolution 84
(105th Congress), as applicable.
(b) SHIFTING OF DISCRETIONARY SPENDING LIMITS
INTO GRAMM-RUDMAN.—
(1) IN GENERAL.—Section 251 of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended by adding at the end the following:
‘‘(c) DISCRETIONARY SPENDING LIMIT.—As used in
this part, the term ‘discretionary spending limit’ means—
‘‘(1) with respect to fiscal year 1997, for the dis-
cretionary 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;
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‘‘(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;
‘‘(B) 
for 
the 
nondefense 
category:
$255,699,000,000 in new budget authority and
$287,850,000,000 in outlays; and
‘‘(C) for the violent crime reduction cat-
egory: $5,800,000,000 in new budget authority
and $4,953,000,000 in outlays;
‘‘(4) with respect to fiscal year 2000—
‘‘(A) 
for 
the 
discretionary 
category:
$532,693,000,000 in new budget authority and
$558,711,000,000 in outlays; and
‘‘(B) for the violent crime reduction cat-
egory: $4,500,000,000 in new budget authority
and $5,554,000,000 in outlays;
‘‘(5) with respect to fiscal year 2001—
‘‘(A) 
for 
the 
discretionary 
category:
$537,677,000,000 in new budget authority and
$558,460,000,000 in outlays; and
‘‘(B) for the violent crime reduction cat-
egory: $4,355,000,000 in new budget authority
and $5,936,000,000 in outlays;
‘‘(6) with respect to fiscal year 2002—
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‘‘(A) 
for 
the 
discretionary 
category:
$546,619,000,000 in new budget authority and
$556,314,000,000 in outlays; and
‘‘(B) for the violent crime reduction cat-
egory: $4,455,000,000 in new budget authority
and $4,485,000,000 in outlays;
as adjusted in strict conformance with subsection (b).’’.
(2) TRANSFERS INTO THE FUND.—On the first
day of the following fiscal years, the following
amounts shall be transferred from the general fund to
the Violent Crime Reduction Trust Fund—
(A) for fiscal year 2001, $4,355,000,000;
and
(B) for fiscal year 2002, $4,455,000,000.
(3) REPEAL OF DUPLICATIVE PROVISIONS.—Sec-
tions 201, 202, and 206 of House Concurrent Resolu-
tion 84 (105th Congress) are repealed.
SEC. 1654. VIOLENT CRIME REDUCTION TRUST FUND.
(a) SEQUESTRATION REGARDING VIOLENT CRIME RE-
DUCTION TRUST FUND.—Section 251A of the Balanced
Budget and Emergency Deficit Control Act of 1985 is re-
pealed.
(b) CONFORMING AMENDMENT.—Section 310002 of
Public Law 103–322 (42 U.S.C. 14212) is repealed.
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SEC. 1655. ENFORCING PAY-AS-YOU-GO.
(a) EXTENSION.—Section 252 of the Balanced Budget
and Emergency Deficit Control Act of 1985 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.—For fiscal years 1998 through
2002, within 15 calendar days after Congress ad-
journs to end a session and on the same day as a se-
questration (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 legislation (after adjust-
ing for any prior sequestration as provided by para-
graph (2)) plus any net deficit increase in the prior
fiscal year caused by all direct spending and receipts
legislation not reflected in the final OMB sequestra-
tion 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—
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‘‘(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 deposit insurance guarantee commit-
ment in effect under current law; and
‘‘(ii) emergency provisions as des-
ignated under subsection (e);
‘‘(B) the estimated amount of savings in di-
rect spending programs applicable to the budget
year resulting from the prior year’s sequestration
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 sequestration re-
port for that year, other than any amounts in-
cluded in such estimates resulting from—
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‘‘(i) full funding of, and continuation
of, the deposit insurance guarantee commit-
ment in effect under current law; and
‘‘(ii) emergency provisions as des-
ignated under subsection (e).’’;
(2) 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 to OMB of the legislation.
‘‘(2) OMB ESTIMATES.—Not later than 5 cal-
endar days (excluding Saturdays, Sundays, and 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 that legislation;
‘‘(B) an OMB estimate of that legislation
using current economic and technical assump-
tions; and
‘‘(C) an explanation of any difference be-
tween the 2 estimates.
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‘‘(3) SCOPE OF ESTIMATES.—The estimates shall
be prepared in conformance with scorekeeping guide-
lines and shall include the amount of change in out-
lays or receipts, as the case may be, for the current
year (if applicable), the budget year, and each out-
year.
‘‘(4) CONSULTATION.—OMB and CBO, after con-
sultation with each other and the Committees on the
Budget of the House of Representatives and the Sen-
ate, shall—
‘‘(A) determine scorekeeping guidelines; and
‘‘(B) in conformance with such guidelines,
prepare estimates under this subsection.’’; and
(3) in subsection (e), by striking ‘‘, for any fiscal
year from 1991 through 1998,’’ and by striking
‘‘through 1995’’.
SEC. 1656. 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), respec-
tively;
(2) in subsection (c)(2) (as redesignated), by
striking ‘‘1998’’ and inserting ‘‘2002’’;
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(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’’; and
(4) by striking subsection (h), as redesignated,
and redesignating subsection (i), as redesignated, as
subsection (h).
SEC. 1657. EXEMPT PROGRAMS AND ACTIVITIES.
(a) VETERANS PROGRAMS.—Section 255(b) of the Bal-
anced 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’’.
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‘‘(f) OPTIONAL EXEMPTION
OF MILITARY PERSON-
NEL.—
‘‘(1) The President may, with respect to any
military personnel account, exempt from sequestra-
tion or provide for a lower uniform percentage reduc-
tion than would otherwise apply.
‘‘(2) The President may not use the authority
provided by paragraph (1) unless he notifies the Con-
gress of the manner in which such authority will be
exercised on or before the date specified in section
254(d) 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 pro-
vided 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.
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(N) After the item relating to the Exchange sta-
bilization 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 Corpora-
tion;’’.
(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 De-
posit 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’’.
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(U) In the item relating to the health professions
graduate student loan insurance fund, insert ‘‘pro-
gram account’’ after ‘‘fund’’ and strike ‘‘(Health Edu-
cation 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 col-
lections 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 National
Credit Union Administration, strike ‘‘central’’ and
insert ‘‘Central’’ and insert ‘‘(25–4470–0–3–373)’’ be-
fore the semicolon.
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(BB) In the third item relating to the National
Credit Union Administration, strike ‘‘credit’’ and in-
sert ‘‘Credit’’ and insert ‘‘(25–4468–0–3–373)’’ before
the semicolon.
(CC) After the third item relating to the Na-
tional Credit Union Administration, insert the follow-
ing new item:
‘‘Office of Thrift Supervision (20–4108–0–
3–373);’’.
(DD) In the item relating to Payments to health
care trust funds, strike ‘‘572’’ and insert ‘‘571’’.
(EE) Strike ‘‘Compact of Free Association, eco-
nomic assistance pursuant to Public Law 99–658
(14–0415–0–1–806);’’.
(FF) In the item relating to Payments to social
security trust funds, strike ‘‘571’’ and insert ‘‘651’’.
(GG) Strike ‘‘Payments to state and local gov-
ernment fiscal assistance trust fund (20–2111–0–1–
851);’’.
(HH) In the item relating to Payments to the
United States territories, strike ‘‘852’’ and insert
‘‘806’’.
(II) Strike ‘‘Resolution Funding Corporation;’’.
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(JJ) In the item relating to the Resolution Trust
Corporation, insert ‘‘Revolving Fund (22–4055–0–3–
373)’’ before the semicolon.
(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’’.
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(D) In the item relating to Longshoremen’s com-
pensation benefits, insert ‘‘Special workers compensa-
tion expenses,’’ before ‘‘Longshoremen’s’’.
(E) In the item relating to Railroad retirement
tier II, insert ‘‘Industry Pension Fund’’ after ‘‘tier
II’’, and strike ‘‘retirement tier II’’.
(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 fol-
lowing new item:
‘‘Credit liquidating accounts;’’.
(E) Strike the following items:
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‘‘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 vessels
(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);
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‘‘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) In the item relating to Aid to families with
dependent children, strike ‘‘0412’’ and insert ‘‘1501’’.
(2) Amend the item relating to Child nutrition
to read as follows:
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‘‘State child nutrition programs (with the
exception of special milk programs) (12–3539–0–
1–605);’’.
(3) After the item relating to State child nutri-
tion programs, insert the following new item:
‘‘Commodity supplemental food program
(12–3512–0–1–605);’’.
(4) 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 number
set forth in the Budget of the United States Government
1998–Appendix, and an activity within an account is des-
ignated by the name of the activity and the identification
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 is repealed.
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SEC. 1658. GENERAL AND SPECIAL SEQUESTRATION RULES.
(a) CONFORMING AMENDMENTS.—
(1) SECTION HEADING.—The section heading of
section 256 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking
‘‘EXCEPTIONS, 
LIMITATIONS, 
AND
SPECIAL
RULES’’ and inserting ‘‘GENERAL AND SPECIAL
SEQUESTRATION RULES’’.
(2) TABLE OF CONTENTS.—The item relating to
section 256 in the table contents 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 Con-
trol Act of 1985 is amended by striking paragraph (1) and
redesignating paragraphs (2) and (3) as paragraphs (1)
and (2), respectively.
(c) GUARANTEED STUDENT LOAN PROGRAM.—Section
256(b) of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 is amended to read as follows:
‘‘(b) STUDENT LOANS.—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 456(c) of that Act shall be increased by a
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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.’’.
(d) HEALTH CENTERS.—Section 256(e)(1) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
is amended by striking the dash and all that follows there-
after and inserting ‘‘2 percent.’’.
(e) TREATMENT OF FEDERAL ADMINISTRATIVE EX-
PENSES.—Section 256(h)(4) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by strik-
ing subparagraphs (D) and (H), by redesignating subpara-
graphs (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.’’.
(f) 
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-
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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 re-
duction in outlays under the milk price support pro-
gram that otherwise would have been achieved by re-
ducing payments for the purchase of milk or the prod-
ucts of milk under this subsection during the applica-
ble fiscal year.’’.
(g) 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; and
(2) strike paragraph (4), redesignate paragraphs
(5) and (6) as paragraphs (4) and (5), respectively,
and amend paragraph (5) (as redesignated) 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
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in which the sequestration occurs, but shall be avail-
able in subsequent years to the extent otherwise pro-
vided in law.’’.
SEC. 1659. THE BASELINE.
(a) IN GENERAL.—Section 257 of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended—
(1) by striking subsection (b)(2)(A) and inserting
the following:
‘‘(A)(i) No program with estimated current year
outlays greater than $50,000,000 shall be assumed to
expire in the budget year or the outyears except as
provided in clause (ii).
‘‘(ii) If legislation eliminates direct spending au-
thority for a program for the budget year or any out-
year and such legislation provides that the Federal
Government has no legal authority or obligation to
incur financial obligations for such program, clause
(i) shall not apply and CBO and OMB, as appro-
priate, may score such legislation with the budget au-
thority and outlay effects resulting from terminating
such program as provided in such legislation and the
baseline may assume the expiration of that program
as provided in such legislation.’’;
(2) by adding the end of subsection (b)(2) the fol-
lowing new subparagraph:
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‘‘(D) If any law expires before the budget year
or any outyear, then any program with estimated
current year outlays greater than $50,000,000 which
operates under that law shall be assumed to continue
to operate under that law as in effect immediately be-
fore its expiration.’’;
(3) in subsection (c)(5), in the second sentence,
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 shall not be counted for purposes of sections 251,
252, and 253 against legislation if that sale would result
in a financial cost to the Federal Government.’’.
(b) BUDGETARY TREATMENT
OF CERTAIN TRUST
FUND OPERATIONS.—Section 710 of the Social Security
Act (42 U.S.C. 911) is amended to read as follows:
‘‘BUDGETARY TREATMENT OF TRUST FUND OPERATIONS
‘‘SEC. 710. (a) The receipts and disbursements of the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund and the taxes
imposed under sections 1401 and 3101 of the Internal Reve-
nue Code of 1986 shall not be included in the totals of the
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budget of the United States Government as submitted by
the President or of the congressional budget and shall be
exempt from any general budget limitation imposed by stat-
ute on expenditures and net lending (budget outlays) of the
United States Government.
‘‘(b) No provision of law enacted after the date of en-
actment of the Balanced Budget and Emergency Deficit
Control Act of 1985 (other than a provision of an appro-
priation Act that appropriated funds authorized under the
Social Security Act as in effect on the date of the enactment
of the Balanced Budget and Emergency Deficit control Act
of 1985) may provide for payments from the general fund
of the Treasury to any Trust Fund specified in paragraph
(1) or for payments from any such Trust Fund to the gen-
eral fund of the Treasury.’’.
SEC. 1660. TECHNICAL CORRECTION.
Section 258 of the Balanced Budget and Emergency
Deficit Control Act of 1985, entitled ‘‘Modification of Presi-
dential Order’’, is repealed.
SEC. 1661. 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 ap-
pears and insert ‘‘254’’.
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(2) In subsection (d)(1)(A), strike ‘‘257(l) to the
extent that’’ and insert ‘‘256(a) if’’, strike the par-
enthetical phrase, and at the end insert ‘‘or’’.
(3) In subsection (d)(1)(B), strike ‘‘new budget’’
and all that follows through ‘‘spending authority’’
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), respec-
tively.
(6) In subsection (g) (as redesignated), strike
‘‘base levels of total revenues and total budget outlays,
as’’ and insert ‘‘figures’’, and ‘‘251(a)(2)(B) or
(c)(2),’’ and insert ‘‘254’’.
SEC. 1662. 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, 252, 253, 258B, and’’;
(2) by striking ‘‘1995’’ and inserting ‘‘2002’’;
and
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(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 Omnibus
Budget Reconciliation Act of 1993 is repealed.
SEC. 1663. REDUCTION OF PREEXISTING BALANCES AND
EXCLUSION 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 any Act enacted pursuant to
section 104 or 105 of House Concurrent Resolution 84
(105th Congress).
Attest:
Secretary.