(A) shall be made so as to ensure that out-
lays for each program, project, activity, or ac-
count involved are reduced by a percentage rate
that is uniform for all such programs, projects,
activities, and accounts, and may not be made
so as to achieve a percentage rate of reduction
in any such item exceeding the rate specified in
the order; and
(B) with respect to commodity price sup-
port and income protection programs, shall be
made in such manner and under such proce-
dures as will attempt to ensure that—
(i) uncertainty as to the scope of ben-
efits under any such program is mini-
mized;
(ii) any instability in market prices
for agricultural commodities resulting from
the reduction is minimized; and
(iii) normal production and marketing
relationships among agricultural commod-
ities (including both contract and non-con-
tract commodities) are not distorted.
In meeting the criterion set out in clause (iii)
of subparagraph (B) of the preceding sentence,
the President shall take into consideration that
reductions under an order may apply to pro-
grams for two or more agricultural commodities
that use the same type of production or market-
ing resources or that are alternative commod-
ities among which a producer could choose in
making annual production decisions.
(5) CERTAIN
AUTHORITY
NOT
TO
BE
LIM-
ITED.—Nothing in this subtitle shall limit or reduce
in any way any appropriation that provides the
Commodity Credit Corporation with funds to cover
the Corporation’s net realized losses.
(k) THE 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.
(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 ex-
ceeds 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 REMAIN-
ING UNALLOTTED AFTER APPLICATION OF GEN-
ERAL 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-
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.
(l) POSTAL SERVICE FUND.—Notwithstanding any
other provision of law, any sequestration of the Postal
Service Fund shall be accomplished by a payment from
that Fund to the General Fund of the Treasury, and the
Postmaster General of the United States shall make the
full amount of that payment during the fiscal year to
which the presidential sequestration order applies.
(m) EFFECTS OF SEQUESTRATION.—The effects of
sequestration shall be as follows:
(1) Budgetary resources sequestered from any
account other than an entitlement trust, special, or
revolving fund account shall revert to the Treasury
and be permanently canceled.
(2) Except as otherwise provided, the same per-
centage sequestration shall apply to all programs,
projects, and activities within a budget account (with
programs, projects, and activities as delineated in
the appropriation Act or accompanying report for
the relevant fiscal year covering that account, or for
accounts not included in appropriation Acts, as de-
lineated in the most recently submitted President’s
budget).
(3) Administrative regulations or similar ac-
tions implementing a sequestration shall be made
within 120 days of the sequestration order. To the
extent that formula allocations differ at different
levels of budgetary resources within an account, pro-
gram, project, or activity, the sequestration shall be
interpreted as producing a lower total appropriation,
with that lower appropriation being obligated as
though it had been the pre-sequestration appropria-
tion and no sequestration had occurred.
(4) Except as otherwise provided, obligations in
sequestered direct spending accounts shall be re-
duced in the fiscal year in which a sequestration oc-
curs and in all succeeding fiscal years.
(5) If an automatic spending increase is seques-
tered, the increase (in the applicable index) that was
disregarded as a result of that sequestration shall
not be taken into account in any subsequent fiscal
year.
(6) Except as otherwise provided, sequestration
in accounts for which obligations are indefinite shall
be taken in a manner to ensure that obligations in
the fiscal year of a sequestration and succeeding fis-
cal years are reduced, from the level that would ac-
tually have occurred, by the applicable sequestration
percentage.
SEC. 224. POINT OF ORDER.
(a) IN GENERAL.—It shall not be in order in the
House of Representatives or the Senate to consider any
bill, joint resolution, amendment thereto, or conference re-
port thereon that includes any provision that has the effect
of modifying the application of this subtitle to any entitle-
ment program subject to sequestration or exempt from se-
questration under this subtitle.
(b) WAIVER OR SUSPENSION.—This section may be
waived or suspended in the House of Representatives or
the Senate only by the affirmative vote of three-fifths of
the Members, duly chosen and sworn.
Subtitle D—Balanced Budget by
Fiscal Year 2002
SEC. 231. MAXIMUM SPENDING AMOUNTS.
Section 601(a)(1) of the Congressional Budget Act
of 1974 is amended to read as follows:
‘‘(1) MAXIMUM SPENDING AMOUNT.—The term
‘maximum spending amount’ means—
vote of three-fifths of its Members, duly chosen and
sworn.’’.
Æ
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