‘‘(2) fiscal year 2040: 20 percent; and 
‘‘(3) fiscal year 2050: 20 percent; 
of the current projected gross domestic product of the 
United States for the budget year.’’. 
(b) DEFINITIONS.—Section 250(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (as 
amended by section 2) is further amended by adding at 
the end the following new paragraph: 
‘‘(25) The term ‘total spending’ means all out-
lays of the Government, including those from off- 
budget entities and budget authority and outlays 
flowing therefrom.’’. 
(c) CONFORMING AMENDMENT.—The table of con-
tents set forth in 250(a) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by in-
serting after the item relating to section 252 the following 
new item: 
‘‘Sec. 252A. Total spending limits.’’. 
SEC. 4. REPORTS AND ORDERS. 
Section 254 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended— 
(1) in subsection (c), by repealing paragraph 
(1) and inserting the following new paragraph: 
‘‘(1) REPORTING REQUIREMENT.—On the dates 
specified in subsection (a), OMB and CBO shall 
issue a preview report regarding discretionary, di-
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rect, total, and deficit sequestration based on laws 
enacted through those dates.’’; 
(2) in subsection (c), by repealing paragraph 
(3) and inserting the following new paragraph: 
‘‘(3) DIRECT
SPENDING
SEQUESTRATION
RE-
PORTS.—The preview report shall set forth for the 
budget year estimates for each of the following: 
‘‘(A) The amount of any excess direct 
spending for Medicare, for Medicaid and other 
health-related spending, and for all other direct 
spending. 
‘‘(B) The sequestration percentage or per-
centages necessary to reduce direct spending in 
accounts for Medicare, for Medicaid and other 
health-related spending, and for all other direct 
spending, as applicable. 
‘‘(C) For a budget year, the current pro-
jected gross domestic product of the United 
States for that year.’’; 
(3) in subsection (c), by repealing paragraph 
(4), by redesignating paragraph (5) as paragraph 
(6), and by inserting the following new paragraphs: 
‘‘(4) TOTAL
SPENDING
SEQUESTRATION
RE-
PORTS.—The preview report shall set forth for the 
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budget years 2030, 2040, and 2050 estimates for 
each of the following: 
‘‘(A) The amount of any excess total 
spending. 
‘‘(B) The sequestration percentage nec-
essary to eliminate any excess total spending. 
‘‘(5) DEFICIT SEQUESTRATION REPORTS.—The 
preview report shall set forth for the budget year es-
timates for each of the following: 
‘‘(A) The amount of the current gross do-
mestic product of the United States. 
‘‘(B) The estimated deficit. 
‘‘(C) The amount by which the estimated 
deficit exceeds the deficit limit. 
‘‘(D) The sequestration percentage nec-
essary to achieve the required reduction in 
spending to comply with the applicable deficit 
limit set forth in section 253(c).’’; 
(4) in subsection (f)(3), by amending the side 
heading and the first sentence to read as follows: 
‘‘DIRECT, TOTAL, AND DEFICIT SEQUESTRATION RE-
PORTS.—The final report shall contain all the infor-
mation required in the direct, total, and deficit se-
questration preview reports.’’; 
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(5) in subsection (f), by amending paragraph 
(4) to read as follows: 
‘‘(4) EXPLANATION
OF
DIFFERENCES.—The 
OMB report shall explain any material differences 
between OMB and CBO estimates in any com-
parable reports.’’; and 
(6) in subsection (g), by striking ‘‘(f)(4)’’ and 
inserting ‘‘(f)(5)’’. 
SEC. 5. EXEMPT PROGRAMS AND ACTIVITIES; SPECIAL SE-
QUESTRATION RULES. 
Sections 255 and 256 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 are amended to 
read as follows: 
‘‘SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES. 
‘‘(a) EXEMPT PROGRAMS AND ACTIVITIES.—The fol-
lowing shall be exempt from reduction under any order 
issued under this part: 
‘‘(1) Payments for net interest. 
‘‘(2) Benefits payable under the old-age, sur-
vivors, and disability insurance program established 
under title II of the Social Security Act. 
‘‘(3) Compensation, pensions, and benefits pro-
vided to veterans defined as direct spending payable 
by the Department of Veterans Affairs. 
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