I 
108TH CONGRESS 
1ST SESSION 
H. R. 180
To reform Federal budget procedures to restrain congressional spending, 
foster greater oversight of the budget, account for accurate Government 
agency costs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 7, 2003
Mr. RYAN of Wisconsin (for himself, Mr. BRADY of Texas, Mr. AKIN, Mr. 
ROYCE, and Mr. SESSIONS) introduced the following bill; which was re-
ferred to the Committee on the Budget, for a period ending not later 
than June 1, 2003, and in addition to the Committees on Rules, Ways 
and Means, and Government Reform, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To reform Federal budget procedures to restrain congres-
sional spending, foster greater oversight of the budget, 
account for accurate Government agency costs, and for 
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited at the 
‘‘Budget Fraud Elimination Act of 2003’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents. 
TITLE I—TRUTH IN BUDGETING 
Subtitle A—Limit on the Public Debt 
Sec. 101. Findings. 
Sec. 102. Purpose. 
Sec. 103. Limit on public debt. 
Subtitle B—Establishment of Biennial Budgeting 
Sec. 111. Findings. 
Sec. 112. Revision of timetable. 
Sec. 113. Amendments to the Congressional Budget and Impoundment Control 
Act of 1974. 
Sec. 114. Amendments to rules of House of Representatives. 
Sec. 115. Amendments to title 31, United States Code. 
Sec. 116. Two-year appropriations; title and style of appropriation acts. 
Sec. 117. Multiyear authorizations. 
Sec. 118. Government strategic and performance plans on a biennial basis. 
Sec. 119. Biennial appropriation bills. 
Sec. 120. Assistance by Federal agencies to standing committees of the Senate 
and the House of Representatives. 
Sec. 121. Report on two-year fiscal period. 
Sec. 122. Special transition period for the 109th Congress. 
Sec. 123. Effective date. 
TITLE II—TRUTH IN SPENDING 
Subtitle A—Emergency Spending Legislation 
Sec. 201. Emergency spending legislation and the baseline. 
Sec. 202. OMB emergency criteria. 
Sec. 203. Point of order to enforce definition of emergency. 
Subtitle B—The Byrd Rule 
Sec. 211. Limitation on Byrd rule. 
Subtitle C—Spending Accountability Reserve 
Sec. 231. Short title. 
Sec. 232. Spending accountability reserve ledger. 
Sec. 233. Downward adjustment of section 302(a) allocations and section 
302(b) suballocations. 
Sec. 234. Periodic reporting of ledger statements. 
Sec. 235. Downward adjustment of discretionary spending limits. 
Sec. 236. Reduction in revenues. 
Subtitle D—Enhanced Rescissions of Budget Authority Identified by the 
President as Wasteful Spending 
Sec. 251. Short title. 
Sec. 252. Enhanced consideration of certain proposed rescissions. 
Subtitle E—Extension of Discretionary Spending Limits and Paygo
Sec. 261. Amendments to sections 251, 252, and 275 of the Balanced Budget 
and Emergency Deficit Control Act of 1985. 
Subtitle F—Paygo Requirements and the On-Budget Surplus 
Sec. 271. Paygo requirements and the on-budget surplus. 
Subtitle G—Treatment of Extraneous Appropriations in Omnibus 
Appropriation Measures 
Sec. 281. Treatment of extraneous appropriations. 
TITLE III—BUDGETING AND MANAGING FOR RESULTS: FULL 
FUNDING FOR FEDERAL RETIREE COSTS 
Subtitle A—Accrual Funding of Pensions and Retirement Pay forederal 
Employees and Uniformed Services Personnel 
Sec. 301. Civil Service Retirement System. 
Sec. 302. Central Intelligence Agency Retirement and Disability System. 
Sec. 303. Foreign Service Retirement and Disability System. 
Sec. 304. Public Health Service Commissioned Corps Retirement System. 
Sec. 305. National Oceanic and Atmospheric Administration Commissioned Of-
ficer Corps Retirement System. 
Sec. 306. Coast Guard Military Retirement System. 
Subtitle B—Accrual Funding of Post-Retirement Health Benefits Costs for 
Federal Employees 
Sec. 311. Federal employees health benefits fund. 
Sec. 312. Funding uniformed services health benefits for all retirees. 
Sec. 313. Effective date.
TITLE I—TRUTH IN BUDGETING 
Subtitle A—Limit on the Public 
Debt
SEC. 101. FINDINGS. 
The Congress finds the following: 
(1) Since 1997, Congress has paid down and 
retired approximately $450,000,000,000 of the Gov-
ernment’s debt which was previously held by the 
public. 
(2) This reduction in the Government’s debt to 
the public should permit a lowering of the statutory
debt ceiling. However, the statutory definition min-
gles both the public debt and intragovernment liabil-
ities, the latter of which do not represent resource 
withdrawals for the economy. 
(3) Intragovernment accounts such as the social 
security trust funds, the Civil Service Retirement 
and Disability Fund, the Department of Defense 
Military Retirement Fund, and the Unemployment 
Trust Fund constitute accrued liabilities of the Gov-
ernment which will be paid from future receipts, 
taxes, or borrowing. If the Government issues debt 
to the public to fund such liabilities in the future, 
that debt will properly be subject to the debt ceiling. 
(4) Properly defining the debt of the Govern-
ment would permit lowering the debt ceiling to take 
account of, and lock in, the fiscal progress that has 
been made. 
SEC. 102. PURPOSE. 
It is the purpose of this subtitle to—
(1) properly define the public debt to exclude 
intragovernment obligations; and 
(2) reduce the public debt ceiling in recognition 
of the reduction in outstanding public debt in recent 
years, and to encourage further fiscal responsibility
and progress toward eliminating the remaining out-
standing debt. 
SEC. 103. LIMIT ON PUBLIC DEBT. 
Section 3101 of title 31, United States Code, is 
amended to read as follows: 
‘‘§ 3101. Public debt limit 
‘‘(a) In this section, the current redemption value of 
an obligation issued on a discount basis and redeemable 
before maturity at the option of its holder is deemed to 
be the face amount of the obligation. 
‘‘(b) The face amount of obligations issued under this 
chapter and the face amount of obligations whose prin-
cipal and interest are guaranteed by the United States 
Government (except guaranteed obligations held by the 
Secretary of the Treasury and intragovernmental hold-
ings) may not be more than $3,870,000,000,000 out-
standing at one time, subject to changes periodically made 
in that amount as provided by law. 
‘‘(c) For purposes of this section, the face amount, 
for any month, of any obligation issued on a discount basis 
that is not redeemable before maturity at the option of 
the holder of the obligation is an amount equal to the sum 
of—
‘‘(1) the original issue price of the obligation, 
plus
‘‘(2) the portion of the discount on the obliga-
tion attributable to periods before the beginning of 
such month (as determined under the principles of 
section 1272(a) of the Internal Revenue Code of 
1986 without regard to any exceptions contained in 
paragraph (2) of such section). 
‘‘(d) For purposes of this section, the term 
‘intragovernment holding’ is any obligation issued by the 
Secretary of the Treasury to any Federal trust fund or 
Government account, whether in respect of public money, 
money otherwise required to be deposited in the Treasury, 
or amounts appropriated.’’. 
Subtitle B—Establishment of 
Biennial Budgeting 
SECTION 111. FINDINGS. 
The Congress finds that—
(1) the annual appropriations and budget proc-
ess increasingly dominates the congressional agenda 
and Congress regularly fails to meet the deadlines of 
the Congressional Budget Act of 1974; 
(2) the design of the budget process has led to 
repetitive and time-consuming budget votes, decreas-
ing the time available for the systematic and pro-
grammatic oversight of Federal programs and delay-
ing the enactment of legislation necessary to fund 
the Government; 
(3) Congress’ responsibility to improve the effi-
ciency, economy, and effectiveness of governmental 
operations, evaluate programs and performance, de-
tect and prevent poor administration, waste, or 
abuse in Government programs, ensure that execu-
tive policies reflect the public interest, ensure admin-
istrative compliance with legislative intent, and pre-
vent executive encroachment on legislative authority 
and prerogatives is undermined by the current time-
consuming and repetitive budget process; 
(4) an annual budget process encourages ineffi-
ciency in the management, stability, and predict-
ability of Federal funding, particularly for States 
and localities; 
(5) a biennial budget process will reduce the 
number of budget-related votes during each Con-
gress, enhance congressional oversight of Govern-
ment operations, encourage longer time horizons in 
policy planning and greater stability in fiscal policy; 
(6) a biennial budget process was a principal 
recommendation of the 1993 Joint Committee on 
the Organization of Congress and the Vice Presi-
dent’s National Performance Review;
(7) since the enactment of the Congressional 
Budget Act of 1974, more than 50 bills addressing 
a two-year budget cycle have been introduced, 10 bi-
ennial budget related provisions were reported by 
congressional committees, 7 passed either chamber 
and 4 were enacted; more than 40 congressional or 
special committee hearings addressed the issue of bi-
ennial budgeting; and the Congressional Budget Of-
fice, the Office of Management and Budget, and 5 
different special task forces or joint committees of 
Congress have either recommended biennial budg-
eting or further studies of it; 
(8) the adoption of a biennial budget process 
was recommended by President Reagan in the fiscal 
year 1989 budget submission, by President Bush in 
the fiscal year 1990 and 1991 budget submissions, 
by President Clinton in the fiscal year 1995, 2000, 
and 2001 budget submissions, and by President 
Bush in the fiscal year 2002 budget submission; and 
(9) a bipartisan majority of Members of the 
House of Representatives support a biennial budget 
process. 
SEC. 112. REVISION OF TIMETABLE. 
Section 300 of the Congressional Budget Act of 1974 
(2 U.S.C. 631) is amended to read as follows:
‘‘TIMETABLE 
‘‘SEC. 300. (a) IN GENERAL.—Except as provided by 
subsection (b), the timetable with respect to the congres-
sional budget process for any Congress (beginning with 
the One Hundred Tenth Congress) is as follows: 
‘‘First Session 
‘‘On or before: 
Action to be completed:
First Monday in February .......
President submits budget recommendations. 
February 15 .............................
Congressional Budget Office submits report 
to Budget Committees. 
Not later than 6 weeks after 
budget submission.
Committees submit views and estimates to 
Budget Committees. 
April 1 ......................................
Budget Committees report concurrent resolu-
tion on the biennial budget. 
May 15 .....................................
Congress completes action on concurrent reso-
lution on the biennial budget. 
May 15 .....................................
Biennial appropriation bills may be consid-
ered in the House. 
June 10 ....................................
House Appropriations Committee reports last 
biennial appropriation bill. 
June 30 ....................................
House completes action on biennial appropria-
tion bills. 
October 1 ..................................
Biennium begins.
‘‘Second Session
‘‘On or before: 
Action to be completed:
February 15 .............................
President submits budget review. 
Not later than 6 weeks after 
President submits budget re-
view.
Congressional Budget Office submits report 
to Budget Committees. 
The last day of the session .......
Congress completes action on bills and resolu-
tions authorizing new budget authority for 
the succeeding biennium. 
‘‘(b) SPECIAL RULE.—In the case of any first session 
of Congress that begins in any year during which the term 
of a President (except a President who succeeds himself) 
begins, the following dates shall supersede those set forth 
in subsection (a):
‘‘First Session 
‘‘On or before: 
Action to be completed: 
First Monday in April ..............
President submits budget recommendations. 
April 20 ....................................
Committees submit views and estimates to 
Budget Committees. 
May 15 .....................................
Budget Committees report concurrent resolu-
tion on the biennial budget. 
June 1 ......................................
Congress completes action on concurrent reso-
lution on the biennial budget. 
June 1 ......................................
Biennial appropriation bills may be consid-
ered in the House. 
July 1 .......................................
House Appropriations Committee reports last 
biennial appropriation bill. 
July 20 .....................................
House completes action on biennial appropria-
tion bills. 
October 1 ..................................
Biennium begins.’’. 
SEC. 113. AMENDMENTS TO THE CONGRESSIONAL BUDGET 
AND IMPOUNDMENT CONTROL ACT OF 1974. 
(a) DECLARATION OF PURPOSE.—Section 2(2) of the 
Congressional Budget and Impoundment Control Act of 
1974 (2 U.S.C. 621(2)) is amended by striking ‘‘each 
year’’ and inserting ‘‘biennially’’. 
(b) DEFINITIONS.—
(1) BUDGET
RESOLUTION.—Section 3(4) of 
such Act (2 U.S.C. 622(4)) is amended by striking 
‘‘fiscal year’’ each place it appears and inserting ‘‘bi-
ennium’’. 
(2) BIENNIUM.—Section 3 of such Act (2 
U.S.C. 622) is amended by adding at the end the 
following new paragraph:
‘‘(11) The term ‘biennium’ means the period of 
2 consecutive fiscal years beginning on October 1 of 
any odd-numbered year.’’.
(c) BIENNIAL CONCURRENT RESOLUTION ON THE 
BUDGET.—
(1) 
CONTENTS
OF
RESOLUTION.—Section 
301(a) of such Act (2 U.S.C. 632(a)) is amended—
(A) in the matter preceding paragraph (1) 
by—
(i) striking ‘‘April 15 of each year’’ 
and inserting ‘‘May 15 of each odd-num-
bered year’’; 
(ii) striking ‘‘the fiscal year beginning 
on October 1 of such year’’ the first place 
it appears and inserting ‘‘the biennium be-
ginning on October 1 of such year’’; and 
(iii) striking ‘‘the fiscal year beginning 
on October 1 of such year’’ the second 
place it appears and inserting ‘‘each fiscal 
year in such period’’; 
(B) in paragraph (6), by striking ‘‘for the 
fiscal year’’ and inserting ‘‘for each fiscal year 
in the biennium’’; and 
(C) in paragraph (7), by striking ‘‘for the 
fiscal year’’ and inserting ‘‘for each fiscal year 
in the biennium’’. 
(2) ADDITIONAL MATTERS.—Section 301(b) of 
such Act (2 U.S.C. 632(b)) is amended—
(A) in paragraph (3), by striking ‘‘for such 
fiscal year’’ and inserting ‘‘for either fiscal year 
in such biennium’’; and 
(B) in paragraph (7), by striking ‘‘for the 
first fiscal year’’ and inserting ‘‘for each fiscal 
year in the biennium’’. 
(3) VIEWS
OF
OTHER
COMMITTEES.—Section 
301(d) of such Act (2 U.S.C. 632(d)) is amended by 
inserting ‘‘(or, if applicable, as provided by section 
300(b))’’ after ‘‘United States Code’’. 
(4) HEARINGS.—Section 301(e)(1) of such Act 
(2 U.S.C. 632(e)) is amended by—
(A) striking ‘‘fiscal year’’ and inserting 
‘‘biennium’’; and 
(B) inserting after the second sentence the 
following: ‘‘On or before April 1 of each odd-
numbered year (or, if applicable, as provided by 
section 300(b)), the Committee on the Budget 
of each House shall report to its House the con-
current resolution on the budget referred to in 
subsection (a) for the biennium beginning on 
October 1 of that year.’’. 
(5) GOALS FOR REDUCING UNEMPLOYMENT.—
Section 301(f) of such Act (2 U.S.C. 632(f)) is
amended by striking ‘‘fiscal year’’ each place it ap-
pears and inserting ‘‘biennium’’. 
(6) 
ECONOMIC
ASSUMPTIONS.—Section 
301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is 
amended by striking ‘‘for a fiscal year’’ and insert-
ing ‘‘for a biennium’’. 
(7) SECTION HEADING.—The section heading of 
section 301 of such Act is amended by striking ‘‘AN-
NUAL’’ and inserting ‘‘BIENNIAL’’. 
(8) TABLE OF CONTENTS.—The item relating 
to section 301 in the table of contents set forth in 
section 1(b) of such Act is amended by striking ‘‘An-
nual’’ and inserting ‘‘Biennial’’. 
(d) COMMITTEE ALLOCATIONS.—Section 302 of such 
Act (2 U.S.C. 633) is amended—
(1) in subsection (a)(1) by—
(A) striking ‘‘for the first fiscal year of the 
resolution,’’ and inserting ‘‘for each fiscal year 
in the biennium,’’; 
(B) striking ‘‘for that period of fiscal 
years’’ and inserting ‘‘for all fiscal years cov-
ered by the resolution’’; and 
(C) striking ‘‘for the fiscal year of that 
resolution’’ and inserting ‘‘for each fiscal year 
in the biennium’’;
(2) in subsection (f)(1), by striking ‘‘for a fiscal 
year’’ and inserting ‘‘for a biennium’’; 
(3) in subsection (f)(1), by striking ‘‘first fiscal 
year’’ and inserting ‘‘either fiscal year of the bien-
nium’’; 
(4) in subsection (f)(2)(A), by—
(A) striking ‘‘first fiscal year’’ and insert-
ing ‘‘each fiscal year of the biennium’’; and 
(B) striking ‘‘the total of fiscal years’’ and 
inserting ‘‘the total of all fiscal years covered by 
the resolution’’; and 
(5) in subsection (g)(1)(A), by striking ‘‘April’’ 
and inserting ‘‘May’’. 
(e) SECTION 303 POINT OF ORDER.—
(1) IN GENERAL.—Section 303(a) of such Act 
(2 U.S.C. 634(a)) is amended by striking ‘‘for a fis-
cal year’’ and inserting ‘‘for a biennium’’ and by 
striking ‘‘the first fiscal year’’ and inserting ‘‘each 
fiscal year of the biennium’’. 
(2) EXCEPTIONS
IN
THE
HOUSE.—Section 
303(b) of such Act (2 U.S.C. 634(b)) is amended—
(A) in paragraph (1)(A), by striking ‘‘the 
budget year’’ and inserting ‘‘the biennium’’; 
(B) in paragraph (1)(B), by striking ‘‘the 
fiscal year’’ and inserting ‘‘the biennium’’; and
(C) in paragraph (2), by inserting ‘‘(or 
June 1 whenever section 300(b) is applicable)’’ 
after ‘‘May 15’’. 
(3) APPLICATION
TO
THE
SENATE.—Section 
303(c)(1) of such Act (2 U.S.C. 634(c)) is amended 
by—
(A) striking ‘‘fiscal year’’ and inserting 
‘‘biennium’’; and 
(B) striking ‘‘that year’’ and inserting 
‘‘each fiscal year of that biennium’’. 
(f) PERMISSIBLE REVISIONS OF CONCURRENT RESO-
LUTIONS ON THE BUDGET.—Section 304 of such Act (2 
U.S.C. 635) is amended—
(1) by striking ‘‘fiscal year’’ the first two places 
it appears and inserting ‘‘biennium’’; 
(2) by striking ‘‘for such fiscal year’’; and 
(3) by inserting before the period ‘‘for such bi-
ennium’’. 
(g) PROCEDURES FOR CONSIDERATION OF BUDGET 
RESOLUTIONS.—Section 305(a)(3) of such Act (2 U.S.C. 
636(b)(3)) is amended by striking ‘‘fiscal year’’ and in-
serting ‘‘biennium’’. 
(h) COMPLETION OF HOUSE COMMITTEE ACTION ON 
APPROPRIATION BILLS.—Section 307 of such Act (2 
U.S.C. 638) is amended—
(1) by striking ‘‘each year’’ and inserting ‘‘each 
odd-numbered year (or, if applicable, as provided by 
section 300(b), July 1)’’; 
(2) by striking ‘‘annual’’ and inserting ‘‘bien-
nial’’; 
(3) by striking ‘‘fiscal year’’ and inserting ‘‘bi-
ennium’’; and 
(4) by striking ‘‘that year’’ and inserting ‘‘each 
odd-numbered year’’. 
(i) QUARTERLY BUDGET REPORTS.—Section 308 of 
such Act (2 U.S.C. 639) is amended by adding at the end 
the following new subsection: 
‘‘(d) QUARTERLY BUDGET REPORTS.—The Director 
of the Congressional Budget Office shall, as soon as prac-
ticable after the completion of each quarter of the fiscal 
year, prepare an analysis comparing revenues, spending, 
and the deficit or surplus for the current fiscal year to 
assumptions included in the congressional budget resolu-
tion. In preparing this report, the Director of the Congres-
sional Budget Office shall combine actual budget figures 
to date with projected revenue and spending for the bal-
ance of the fiscal year. The Director of the Congressional 
Budget Office shall include any other information in this 
report that it deems useful for a full understanding of the 
current fiscal position of the Federal Government. The re-
ports mandated by this subsection shall be transmitted by 
the Director to the Senate and House Committees on the 
Budget, and the Congressional Budget Office shall make 
such reports available to any interested party upon re-
quest.’’. 
(j) COMPLETION OF HOUSE ACTION ON REGULAR 
APPROPRIATION BILLS.—Section 309 of such Act (2 
U.S.C. 640) is amended—
(1) by striking ‘‘It’’ and inserting ‘‘Except 
whenever section 300(b) is applicable, it’’; 
(2) by inserting ‘‘of any odd-numbered calendar 
year’’ after ‘‘July’’; 
(3) by striking ‘‘annual’’ and inserting ‘‘bien-
nial’’; and 
(4) by striking ‘‘fiscal year’’ and inserting ‘‘bi-
ennium’’. 
(k) RECONCILIATION PROCESS.—Section 310 of such 
Act (2 U.S.C. 641) is amended—
(1) in subsection (a), in the matter preceding 
paragraph (1), by striking ‘‘any fiscal year’’ and in-
serting ‘‘any biennium’’; 
(2) in subsection (a)(1), by striking ‘‘such fiscal 
year’’ each place it appears and inserting ‘‘any fiscal 
year covered by such resolution’’; and
(3) by striking subsection (f) and redesignating 
subsection (g) as subsection (f). 
(l) SECTION 311 POINT OF ORDER.—
(1) IN THE HOUSE.—Section 311(a)(1) of such 
Act (2 U.S.C. 642(a)) is amended—
(A) by striking ‘‘for a fiscal year’’ and in-
serting ‘‘for a biennium’’; 
(B) by striking ‘‘the first fiscal year’’ each 
place it appears and inserting ‘‘either fiscal 
year of the biennium’’; and 
(C) by striking ‘‘that first fiscal year’’ and 
inserting ‘‘each fiscal year in the biennium’’. 
(2) IN
THE
SENATE.—Section 311(a)(2) of 
such Act is amended—
(A) in subparagraph (A), by striking ‘‘for 
the first fiscal year’’ and inserting ‘‘for either 
fiscal year of the biennium’’; and 
(B) in subparagraph (B)—
(i) by striking ‘‘that first fiscal year’’ 
the first place it appears and inserting 
‘‘each fiscal year in the biennium’’; and 
(ii) by striking ‘‘that first fiscal year 
and the ensuing fiscal years’’ and inserting 
‘‘all fiscal years’’.
(3) 
SOCIAL
SECURITY
LEVELS.—Section 
311(a)(3) of such Act is amended by—
(A) striking ‘‘for the first fiscal year’’ and 
inserting ‘‘each fiscal year in the biennium’’; 
and 
(B) striking ‘‘that fiscal year and the ensu-
ing fiscal years’’ and inserting ‘‘all fiscal 
years’’. 
(m) 
MAXIMUM
DEFICIT
AMOUNT
POINT
OF 
ORDER.—Section 312(c) of the Congressional Budget Act 
of 1974 (2 U.S.C. 643) is amended—
(1) by striking ‘‘for a fiscal year’’ and inserting 
‘‘for a biennium’’; 
(2) in paragraph (1), by striking ‘‘first fiscal 
year’’ and inserting ‘‘either fiscal year in the bien-
nium’’; 
(3) in paragraph (2), by striking ‘‘that fiscal 
year’’ and inserting ‘‘either fiscal year in the bien-
nium’’; and 
(4) in the matter following paragraph (2), by 
striking ‘‘that fiscal year’’ and inserting ‘‘the appli-
cable fiscal year’’.
SEC. 114. AMENDMENTS TO RULES OF HOUSE OF REP-
RESENTATIVES. 
(a) Clause 4(a)(1)(A) of rule X of the Rules of the 
House of Representatives is amended by inserting ‘‘odd-
numbered’’ after ‘‘each’’. 
(b) Clause 4(a)(4) of rule X of the Rules of the House 
of Representatives is amended by striking ‘‘fiscal year’’ 
and inserting ‘‘biennium’’. 
(c) Clause 4(b)(2) of rule X of the Rules of the House 
of Representatives is amended by striking ‘‘each fiscal 
year’’ and inserting ‘‘the biennium’’. 
(d) Clause 4(b) of rule X of the Rules of the House 
of Representatives is amended by striking ‘‘and’’ at the 
end of subparagraph (5), by striking the period and insert-
ing ‘‘; and’’ at the end of subparagraph (6), and by adding 
at the end the following new subparagraph: 
‘‘(7) use the second session of each Congress to 
study issues with long-term budgetary and economic 
implications, which would include—
‘‘(A) hold hearings to receive testimony 
from committees of jurisdiction to identify prob-
lem areas and to report on the results of over-
sight; and 
‘‘(B) by January 1 of each odd-number 
year, issuing a report to the Speaker which
identifies the key issues facing the Congress in 
the next biennium.’’. 
(e) Clause 11(i) of rule X of the Rules of the House 
of Representatives is amended by striking ‘‘the same or 
preceding fiscal year’’. 
(f) Clause 4(e) of rule X of the Rules of the House 
of Representatives is amended by striking ‘‘annually’’ each 
place it appears and inserting ‘‘biennially’’ and by striking 
‘‘annual’’ and inserting ‘‘biennial’’. 
(g) Clause 4(f) of rule X of the Rules of the House 
of Representatives is amended—
(1) by inserting ‘‘during each odd-numbered 
year’’ after ‘‘submits his budget’’; 
(2) by striking ‘‘fiscal year’’ the first place it 
appears and inserting ‘‘biennium’’; and 
(3) by striking ‘‘that fiscal year’’ and inserting 
‘‘each fiscal year in such ensuing biennium’’. 
(h) Clause 3(d)(2)(A) of rule XIII of the Rules of 
the House of Representatives is amended by striking 
‘‘five’’ both places it appears and inserting ‘‘six’’. 
(i) Clause 5(a)(1) of rule XIII of the Rules of the 
House of Representatives is amended by striking ‘‘fiscal 
year after September 15 in the preceding fiscal year’’ and 
inserting ‘‘biennium after September 15 of the year in 
which such biennium begins’’.
SEC. 115. AMENDMENTS TO TITLE 31, UNITED STATES 
CODE. 
(a) DEFINITION.—Section 1101 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph:
‘‘(3) ‘biennium’ has the meaning given to such 
term in paragraph (11) of section 3 of the Congres-
sional Budget and Impoundment Control Act of 
1974 (2 U.S.C. 622(11)).’’. 
(b) BUDGET CONTENTS AND SUBMISSION TO THE 
CONGRESS.—
(1) SCHEDULE.—The matter preceding para-
graph (1) in section 1105(a) of title 31, United 
States Code, is amended to read as follows: 
‘‘(a) On or before the first Monday in February of 
each odd-numbered year (or, if applicable, as provided by 
section 300(b) of the Congressional Budget Act of 1974), 
beginning with the One Hundred Ninth Congress, the 
President shall transmit to the Congress, the budget for 
the biennium beginning on October 1 of such calendar 
year. The budget transmitted under this subsection shall 
include a budget message and summary and supporting 
information. The President shall include in each budget 
the following:’’. 
(2) EXPENDITURES.—Section 1105(a)(5) of 
title 31, United States Code, is amended by striking
‘‘the fiscal year for which the budget is submitted 
and the 4 fiscal years after that year’’ and inserting 
‘‘each fiscal year in the biennium for which the 
budget is submitted and in the succeeding 4 years’’. 
(3) RECEIPTS.—Section 1105(a)(6) of title 31, 
United States Code, is amended by striking ‘‘the fis-
cal year for which the budget is submitted and the 
4 fiscal years after that year’’ and inserting ‘‘each 
fiscal year in the biennium for which the budget is 
submitted and in the succeeding 4 years’’. 
(4) 
BALANCE
STATEMENTS.—Section 
1105(a)(9)(C) of title 31, United States Code, is 
amended by striking ‘‘the fiscal year’’ and inserting 
‘‘each fiscal year in the biennium’’. 
(5) GOVERNMENT
FUNCTIONS
AND
ACTIVI-
TIES.—Section 1105(a)(12) of title 31, United 
States Code, is amended in subparagraph (A), by 
striking ‘‘the fiscal year’’ and inserting ‘‘each fiscal 
year in the biennium’’. 
(6) ALLOWANCES.—Section 1105(a)(13) of title 
31, United States Code, is amended by striking ‘‘the 
fiscal year’’ and inserting ‘‘each fiscal year in the bi-
ennium’’. 
(7) ALLOWANCES
FOR
UNANTICIPATED
AND 
UNCONTROLLABLE
EXPENDITURES.—Section
1105(a)(14) of title 31, United States Code, is 
amended by striking ‘‘that year’’ and inserting ‘‘each 
fiscal year in the biennium for which the budget is 
submitted’’. 
(8) TAX EXPENDITURES.—Section 1105(a)(16) 
of title 31, United States Code, is amended by strik-
ing ‘‘the fiscal year’’ and inserting ‘‘each fiscal year 
in the biennium’’. 
(9) ESTIMATES FOR FUTURE YEARS.—Section 
1105(a)(17) of title 31, United States Code, is 
amended—
(A) by striking ‘‘the fiscal year following 
the fiscal year’’ and inserting ‘‘each fiscal year 
in the biennium following the biennium’’; 
(B) by striking ‘‘that following fiscal year’’ 
and inserting ‘‘each such fiscal year’’; and 
(C) by striking ‘‘fiscal year before the fis-
cal year’’ and inserting ‘‘biennium before the bi-
ennium’’. 
(10) 
PRIOR
YEAR
OUTLAYS.—Section 
1105(a)(18) of title 31, United States Code, is 
amended—
(A) by striking ‘‘the prior fiscal year,’’ and 
inserting ‘‘each of the 2 most recently com-
pleted fiscal years,’’;
(B) by striking ‘‘for that year’’ and insert-
ing ‘‘with respect to those fiscal years’’; and 
(C) by striking ‘‘in that year’’ and insert-
ing ‘‘in those fiscal years’’. 
(11) 
PRIOR
YEAR
RECEIPTS.—Section 
1105(a)(19) of title 31, United States Code, is 
amended—
(A) by striking ‘‘the prior fiscal year’’ and 
inserting ‘‘each of the 2 most recently com-
pleted fiscal years’’; 
(B) by striking ‘‘for that year’’ and insert-
ing ‘‘with respect to those fiscal years’’; and 
(C) by striking ‘‘in that year’’ each place 
it appears and inserting ‘‘in those fiscal years’’. 
(c) ESTIMATED EXPENDITURES
OF LEGISLATIVE 
AND JUDICIAL BRANCHES.—Section 1105(b) of title 31, 
United States Code, is amended by striking ‘‘each year’’ 
and inserting ‘‘each even-numbered year’’. 
(d) RECOMMENDATIONS TO MEET ESTIMATED DE-
FICIENCIES.—Section 1105(c) of title 31, United States 
Code, is amended—
(1) by striking ‘‘the fiscal year for’’ the first 
place it appears and inserting ‘‘each fiscal year in 
the biennium for’’;
(2) by striking ‘‘the fiscal year for’’ the second 
place it appears and inserting ‘‘each fiscal year of 
the biennium, as the case may be,’’; and 
(3) by striking ‘‘that year’’ and inserting ‘‘for 
each year of the biennium’’. 
(e) 
CAPITAL
INVESTMENT
ANALYSIS.—Section 
1105(e)(1) of title 31, United States Code, is amended 
by striking ‘‘ensuing fiscal year’’ and inserting ‘‘biennium 
to which such budget relates’’. 
(f) 
SUPPLEMENTAL
BUDGET
ESTIMATES
AND 
CHANGES.—
(1) IN GENERAL.—Section 1106(a) of title 31, 
United States Code, is amended—
(A) in the matter preceding paragraph (1), 
by—
(i) inserting ‘‘and before February 15 
of each even-numbered year’’ after ‘‘Before 
July 16 of each year’’; and 
(ii) striking ‘‘fiscal year’’ and insert-
ing ‘‘biennium’’; 
(B) in paragraph (1), by striking ‘‘that fis-
cal year’’ and inserting ‘‘each fiscal year in 
such biennium’’;
(C) in paragraph (2), by striking ‘‘4 fiscal 
years following the fiscal year’’ and inserting ‘‘4 
fiscal years following the biennium’’; and 
(D) in paragraph (3), by striking ‘‘fiscal 
year’’ and inserting ‘‘biennium’’. 
(2) CHANGES.—Section 1106(b) of title 31, 
United States Code, is amended by—
(A) striking ‘‘the fiscal year’’ and inserting 
‘‘each fiscal year in the biennium’’; and 
(B) inserting ‘‘and before February 15 of 
each even-numbered year’’ after ‘‘Before July 
16 of each year’’. 
(g) CURRENT PROGRAMS
AND ACTIVITIES ESTI-
MATES.—
(1) THE PRESIDENT.—Section 1109(a) of title 
31, United States Code, is amended—
(A) by striking ‘‘On or before the first 
Monday after January 3 of each year (on or be-
fore February 5 in 1986)’’ and inserting ‘‘At 
the same time the budget required by section 
1105 is submitted for a biennium’’; and 
(B) by striking ‘‘the following fiscal year’’ 
and inserting ‘‘each fiscal year of such period’’. 
(2) JOINT
ECONOMIC
COMMITTEE.—Section 
1109(b) of title 31, United States Code, is amended
by striking ‘‘March 1 of each year’’ and inserting 
‘‘within 6 weeks of the President’s budget submis-
sion for each odd-numbered year (or, if applicable, 
as provided by section 300(b) of the Congressional 
Budget Act of 1974)’’. 
(h) YEAR-AHEAD
REQUESTS
FOR
AUTHORIZING 
LEGISLATION.—Section 1110 of title 31, United States 
Code, is amended by—
(1) striking ‘‘May 16’’ and inserting ‘‘March 
31’’; and 
(2) striking ‘‘year before the year in which the 
fiscal year begins’’ and inserting ‘‘calendar year pre-
ceding the calendar year in which the biennium be-
gins’’. 
SEC. 116. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE 
OF APPROPRIATION ACTS. 
Section 105 of title 1, United States Code, is amend-
ed to read as follows:
‘‘§ 105. Title and style of appropriations Acts 
‘‘(a) The style and title of all Acts making appropria-
tions for the support of the Government shall be as fol-
lows: ‘An Act making appropriations (here insert the ob-
ject) for each fiscal year in the biennium of fiscal years 
(here insert the fiscal years of the biennium).’.
‘‘(b) All Acts making regular appropriations for the 
support of the Government shall be enacted for a biennium 
and shall specify the amount of appropriations provided 
for each fiscal year in such period. 
‘‘(c) For purposes of this section, the term ‘biennium’ 
has the same meaning as in section 3(11) of the Congres-
sional Budget and Impoundment Control Act of 1974 (2 
U.S.C. 622(11)).’’. 
SEC. 117. MULTIYEAR AUTHORIZATIONS. 
(a) IN GENERAL.—Title III of the Congressional 
Budget Act of 1974 is amended by adding at the end the 
following new section: 
‘‘MULTIYEAR AUTHORIZATIONS OF APPROPRIATIONS 
‘‘SEC. 316. (a) POINT OF ORDER.—(1)(A) It shall 
not be in order in the House of Representatives or the 
Senate to consider any measure that contains a specific 
authorization of appropriations for any purpose unless the 
measure includes such a specific authorization of appro-
priations for that purpose for not less than each fiscal year 
in one or more bienniums. 
‘‘(B) For purposes of this paragraph, a specific au-
thorization of appropriations is an authorization for the 
enactment of an amount of appropriations or amounts not 
to exceed an amount of appropriations (whether stated as 
a sum certain, as a limit, or as such sums as may be nec-
essary) for any purpose for a fiscal year.
‘‘(2) Paragraph (1) does not apply with respect to 
an authorization of appropriations for a single fiscal year 
for any program, project, or activity if the measure con-
taining that authorization includes a provision expressly 
stating the following: ‘Congress finds that no authoriza-
tion of appropriation will be required for [Insert name of 
applicable program, project, or activity] for any subse-
quent fiscal year.’. 
‘‘(3) For purposes of this section, the term ‘measure’ 
means a bill, joint resolution, amendment, motion, or con-
ference report’’. 
(b) AMENDMENT TO TABLE OF CONTENTS.—The 
table of contents set forth in section 1(b) of the Congres-
sional Budget and Impoundment Control Act of 1974 is 
amended by adding after the item relating to section 315 
the following new item:
‘‘Sec. 316. Multiyear authorizations of appropriations.’’.
SEC. 118. GOVERNMENT STRATEGIC AND PERFORMANCE 
PLANS ON A BIENNIAL BASIS. 
(a) STRATEGIC PLANS.—Section 306 of title 5, 
United States Code, is amended—
(1) in subsection (a), by striking ‘‘September 
30, 1997’’ and inserting ‘‘September 30, 2005’’; 
(2) in subsection (b)—
(A) by striking ‘‘at least every three years’’ 
and all that follows thereafter and inserting ‘‘at
least every 4 years, except that strategic plans 
submitted by September 30, 2005, shall be up-
dated and revised by September 30, 2008’’; and 
(B) by striking ‘‘five years forward’’ and 
inserting ‘‘six years forward’’; and 
(3) in subsection (c), by inserting a comma 
after ‘‘section’’ the second place it appears and add-
ing ‘‘including a strategic plan submitted by Sep-
tember 30, 2005, meeting the requirements of sub-
section (a)’’. 
(b) BUDGET CONTENTS AND SUBMISSION TO CON-
GRESS.—Paragraph (28) of section 1105(a) of title 31, 
United States Code, is amended by striking ‘‘beginning 
with fiscal year 1999, a’’ and inserting ‘‘beginning with 
fiscal year 2008, a biennial’’. 
(c) PERFORMANCE PLANS.—Section 1115 of title 31, 
United States Code, is amended—
(1) in subsection (a)—
(A) in the matter before paragraph (1)—
(i) by striking ‘‘section 1105(a)(29)’’ 
and inserting ‘‘section 1105(a)(28)’’; and 
(ii) by striking ‘‘an annual’’ and in-
serting ‘‘a biennial’’;
(B) in paragraph (1) by inserting after 
‘‘program activity’’ the following: ‘‘for both 
years 1 and 2 of the biennial plan’’; 
(C) in paragraph (5) by striking ‘‘and’’ 
after the semicolon, 
(D) in paragraph (6) by striking the period 
and inserting a semicolon; and inserting ‘‘and’’ 
after the inserted semicolon; and 
(E) by adding after paragraph (6) the fol-
lowing: 
‘‘(7) cover each fiscal year of the biennium be-
ginning with the first fiscal year of the next biennial 
budget cycle.’’; 
(2) in subsection (d) by striking ‘‘annual’’ and 
inserting ‘‘biennial’’; and 
(3) in paragraph (6) of subsection (f) by strik-
ing ‘‘annual’’ and inserting ‘‘biennial’’. 
(d) MANAGERIAL
ACCOUNTABILITY
AND
FLEXI-
BILITY.—Section 9703 of title 31, United States Code, re-
lating to managerial accountability, is amended—
(1) in subsection (a)—
(A) in the first sentence by striking ‘‘an-
nual’’; and 
(B) by striking ‘‘section 1105(a)(29)’’ and 
inserting ‘‘section 1105(a)(28)’’;
(2) in subsection (e)—
(A) in the first sentence by striking ‘‘one 
or’’ before ‘‘two years’’; 
(B) in the second sentence by striking ‘‘a 
subsequent year’’ and inserting ‘‘for a subse-
quent 2-year period’’; and 
(C) in the third sentence by striking 
‘‘three’’ and inserting ‘‘four’’. 
(e) STRATEGIC PLANS.—Section 2802 of title 39, 
United States Code, is amended—
(1) in subsection (a), by striking ‘‘September 
30, 1997’’ and inserting ‘‘September 30, 2005’’; 
(2) in subsection (b), by striking ‘‘at least every 
three years’’ and inserting ‘‘at least every 4 years 
except that strategic plans submitted by September 
30, 2005, shall be updated and revised by September 
30, 2008’’; 
(3) in subsection (b), by striking ‘‘five years 
forward’’ and inserting ‘‘six years forward’’; and 
(4) in subsection (c), by inserting a comma 
after ‘‘section’’ the second place it appears and in-
serting ‘‘including a strategic plan submitted by 
September 30, 2005, meeting the requirements of 
subsection (a)’’.
(f) PERFORMANCE PLANS.—Section 2803(a) of title 
39, United States Code, is amended—
(1) in the matter before paragraph (1), by 
striking ‘‘an annual’’ and inserting ‘‘a biennial’’; 
(2) in paragraph (1), by inserting after ‘‘pro-
gram activity’’ the following: ‘‘for both years 1 and 
2 of the biennial plan’’; 
(3) in paragraph (5), by striking ‘‘and’’ after 
the semicolon;
(4) in paragraph (6), by striking the period and 
inserting ‘‘; and’’; and 
(5) by adding after paragraph (6) the following: 
‘‘(7) cover each fiscal year of the biennium be-
ginning with the first fiscal year of the next biennial 
budget cycle.’’. 
(g) COMMITTEE VIEWS OF PLANS AND REPORTS.—
Section 301(d) of the Congressional Budget Act (2 U.S.C. 
632(d)) is amended by adding at the end ‘‘Each committee 
of the Senate or the House of Representatives shall review 
the strategic plans, performance plans, and performance 
reports, required under section 306 of title 5, United 
States Code, and sections 1115 and 1116 of title 31, 
United States Code, of all agencies under the jurisdiction 
of the committee. Each committee may provide its views
on such plans or reports to the Committee on the Budget 
of the applicable House.’’. 
(h) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by 
this section shall take effect on March 1, 2007. 
(2) AGENCY ACTIONS.—Effective on and after 
the date of enactment of this Act, each agency shall 
take such actions as necessary to prepare and sub-
mit any plan or report in accordance with the 
amendments made by it. 
SEC. 119. BIENNIAL APPROPRIATION BILLS. 
(a) IN
THE HOUSE
OF REPRESENTATIVES.—(1) 
Clause 2(a) of rule XXI of the Rules of the House of Rep-
resentatives is amended by adding at the end the following 
new subparagraph: 
‘‘(3)(A) Except as provided by subdivision (B), an ap-
propriation may not be reported in a general appropriation 
bill (other than a supplemental appropriation bill), and 
may not be in order as an amendment thereto, unless it 
provides new budget authority or establishes a level of ob-
ligations under contract authority for each fiscal year of 
a biennium. 
‘‘(B) Subdivision (A) does not apply with respect to 
an appropriation for a single fiscal year for any program, 
project, or activity if the bill or amendment thereto con-
taining that appropriation includes a provision expressly 
stating the following: ‘Congress finds that no additional 
funding beyond one fiscal year will be required and the 
[Insert name of applicable program, project, or activity] 
will be completed or terminated after the amount provided 
has been expended.’. 
‘‘(C) For purposes of paragraph (b), the statement 
set forth in subdivision (B) with respect to an appropria-
tion for a single fiscal year for any program, project, or 
activity may be included in a general appropriation bill 
or amendment thereto.’’. 
(2) Clause 5(b)(1) of rule XXII of the House of Rep-
resentatives is amended by striking ‘‘or (c)’’ and inserting 
‘‘or (3) or 2(c)’’. 
(b) IN THE SENATE.—(1) Title III of the Congres-
sional Budget Act of 1974 (2 U.S.C. 631 et seq.) (as 
amended by section 117) is further amended by adding 
at the end the following: 
‘‘CONSIDERATION OF BIENNIAL APPROPRIATION BILLS 
‘‘SEC. 317. It shall not be in order in the Senate in 
any odd-numbered year to consider any regular appropria-
tion bill providing new budget authority or a limitation 
on obligations under the jurisdiction of the Committee on 
Appropriations for only the first fiscal year of a biennium, 
unless the program, project, or activity for which the new 
budget authority or obligation limitation is provided will
require no additional authority beyond one year and will 
be completed or terminated after the amount provided has 
been expended.’’. 
(2) The table of contents set forth in section 1(b) of 
the Congressional Budget and Impoundment Control Act 
of 1974 is amended by adding after the item relating to 
section 316 the following new item:
‘‘Sec. 317. Consideration of biennial appropriation bills.’’.
SEC. 120. ASSISTANCE BY FEDERAL AGENCIES TO STAND-
ING COMMITTEES OF THE SENATE AND THE 
HOUSE OF REPRESENTATIVES. 
(a) INFORMATION REGARDING AGENCY APPROPRIA-
TIONS REQUESTS.—To assist each standing committee of 
the House of Representatives and the Senate in carrying 
out its responsibilities, the head of each Federal agency 
which administers the laws or parts of laws under the ju-
risdiction of such committee shall provide to such com-
mittee such studies, information, analyses, reports, and 
assistance as may be requested by the chairman and rank-
ing minority member of the committee. 
(b) INFORMATION REGARDING AGENCY PROGRAM 
ADMINISTRATION.—To assist each standing committee of 
the House of Representatives and the Senate in carrying 
out its responsibilities, the head of any agency shall fur-
nish to such committee documentation, containing infor-
mation received, compiled, or maintained by the agency
as part of the operation or administration of a program, 
or specifically compiled pursuant to a request in support 
of a review of a program, as may be requested by the 
chairman and ranking minority member of such com-
mittee. 
(c) SUMMARIES BY COMPTROLLER GENERAL.—With-
in thirty days after the receipt of a request from a chair-
man and ranking minority member of a standing com-
mittee having jurisdiction over a program being reviewed 
and studied by such committee under this section, the 
Comptroller General of the United States shall furnish to 
such committee summaries of any audits or reviews of 
such program which the Comptroller General has com-
pleted during the preceding six years. 
(d) CONGRESSIONAL ASSISTANCE.—Consistent with 
their duties and functions under law, the Comptroller Gen-
eral of the United States, the Director of the Congres-
sional Budget Office, and the Director of the Congres-
sional Research Service shall continue to furnish (con-
sistent with established protocols) to each standing com-
mittee of the House of Representatives or the Senate such 
information, studies, analyses, and reports as the chair-
man and ranking minority member may request to assist 
the committee in conducting reviews and studies of pro-
grams under this section.
SEC. 121. REPORT ON TWO-YEAR FISCAL PERIOD. 
Not later than 180 days after the date of enactment 
of this Act, the Director of the Office of Management and 
Budget shall—
(1) determine the impact and feasibility of 
changing the definition of a fiscal year and the 
budget process based on that definition to a 2-year 
fiscal period with a biennial budget process based on 
the 2-year period; and 
(2) report the findings of the study to the Com-
mittees on the Budget of the House of Representa-
tives and the Senate and the Committee on Rules of 
the House of Representatives. 
SEC. 122. SPECIAL TRANSITION PERIOD FOR THE 109TH 
CONGRESS. 
(a) PRESIDENT’S BUDGET SUBMISSION FOR FISCAL 
YEAR 2006.—The budget submission of the President 
pursuant to section 1105(a) of title 31, United States 
Code, for fiscal year 2006 shall include the following: 
(1) An identification of the budget accounts for 
which an appropriation should be made for each fis-
cal year of the fiscal year 2006–2007 biennium. 
(2) Budget authority that should be provided 
for each such fiscal year for the budget accounts 
identified under paragraph (1).
(b) REVIEW AND RECOMMENDATIONS OF THE COM-
MITTEES ON APPROPRIATIONS.—The Committee on Ap-
propriations of the House of Representatives and the Sen-
ate shall review the items included pursuant to subsection 
(a) in the budget submission of the President for fiscal 
year 2006 and include its recommendations thereon in its 
views and estimates made under section 301(d) of the 
Congressional Budget Act of 1974 within 6 weeks of that 
budget submission. 
(c) ACTIONS BY THE COMMITTEES ON THE BUDG-
ET.—(1) The Committee on the Budget of the House of 
Representatives and the Senate shall review the items in-
cluded pursuant to subsection (a) in the budget submis-
sion of the President for fiscal year 2006 and the rec-
ommendations submitted by the Committee on Appropria-
tions of its House pursuant to subsection (b) included in 
its views and estimates made under section 301(d) of the 
Congressional Budget Act of 1974. 
(2) The report of the Committee on the Budget of 
each House accompanying the concurrent resolution on 
the budget for fiscal year 2006 and the joint explanatory 
statement of managers accompanying such resolution shall 
also include allocations to the Committee on Appropria-
tions of its House of total new budget authority and total 
outlays (which shall be deemed to be made pursuant to
section 302(a) of the Congressional Budget Act of 1974 
for purposes of budget enforcement under section 302(f)) 
for fiscal year 2005 from which the Committee on Appro-
priations may report regular appropriation bills for fiscal 
year 2006 that include funding for certain accounts for 
each of fiscal years 2006 and 2007. 
(3) The report of the Committee on the Budget of 
each House accompanying the concurrent resolution on 
the budget for fiscal year 2006 and the joint explanatory 
statement of managers accompanying such resolution shall 
also include the assumptions upon which such allocations 
referred to in paragraph (2) are based. 
(d) GAO PROGRAMMATIC
OVERSIGHT
ASSIST-
ANCE.—(1) During the first session of the 109th Congress 
the committees of the House of Representatives and the 
Senate are directed to work with the Comptroller General 
of the United States to develop plans to transition pro-
gram authorizations to a multi-year schedule. 
(2) During the 109th Congress, the Comptroller Gen-
eral of the United States will continue to provide assist-
ance to the Congress with respect to programmatic over-
sight and in particular will assist the committees of Con-
gress in designing and conforming programmatic oversight 
procedures for the fiscal year 2007–2008 biennium.
(e) CBO AUTHORIZATION REPORT.—On or before 
January 15, 2006, the Director of the Congressional 
Budget Office, after consultation with the appropriate 
committees of the House of Representatives and Senate, 
shall submit to the Congress a report listing (A) all pro-
grams and activities funded during fiscal year 2006 for 
which authorizations for appropriations have not been en-
acted for that fiscal year and (B) all programs and activi-
ties funded during fiscal year 2006 for which authoriza-
tions for appropriations will expire during that fiscal year, 
fiscal year 2007, or fiscal year 2008. 
(f) PRESIDENT’S BUDGET SUBMISSION FOR FISCAL 
YEAR 2007.—The budget submission of the President 
pursuant to section 1105(a) of title 31, United States 
Code, for fiscal year 2007 shall include an evaluation of, 
and recommendations regarding, the transitional biennial 
budget process for the fiscal year 2006-2007 biennium 
that was carried out pursuant to this section. 
(g) CBO TRANSITIONAL REPORT.—On or before 
March 31, 2006, the Director of the Congressional Budget 
Office shall submit to Congress an evaluation of, and rec-
ommendations regarding, the transitional biennial budget 
process for the fiscal year 2006-2008 biennium that was 
carried out pursuant to this section.
SEC. 123. EFFECTIVE DATE. 
Except as provided by sections 121 and 122, this title 
and the amendments made by it shall take effect on Janu-
ary 1, 2007, and shall apply to budget resolutions and 
appropriations for the biennium beginning with fiscal year 
2008. 
TITLE II—TRUTH IN SPENDING 
Subtitle A—Emergency Spending 
Legislation 
SEC. 201. EMERGENCY SPENDING LEGISLATION AND THE 
BASELINE. 
(a) IN GENERAL.—Section 257(a) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended by inserting ‘‘, except for emergency appropria-
tions covered by section 251(b)(2)(A) and emergency leg-
islation covered by section 252(e)’’ before the period. 
(b) DIRECT SPENDING
AND RECEIPTS.—Section 
257(b)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by adding at the end the 
following new subparagraph: 
‘‘(E) Emergency legislation covered by section 
252(e) shall not be extended in the baseline.’’. 
(c) 
DISCRETIONARY
APPROPRIATIONS.—Section 
257(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by adding at the end the 
following new paragraph:
‘‘(7) Emergency appropriations covered by sec-
tion 251(b)(2)(A) shall not be extended in the base-
line.’’. 
SEC. 202. OMB EMERGENCY CRITERIA. 
(a) DEFINITION OF EMERGENCY.—Section 3 of the 
Congressional Budget and Impoundment Control Act of 
1974 (as amended by section 113(b)) is further amended 
by adding at the end the following new paragraph: 
‘‘(12)(A) The term ‘emergency’ means a situa-
tion that—
‘‘(i) requires new budget authority and 
outlays (or new budget authority and the out-
lays flowing therefrom) for the prevention or 
mitigation of, or response to, loss of life or 
property, or a threat to national security; and 
‘‘(ii) is unanticipated. 
‘‘(B) As used in subparagraph (A), the term 
‘unanticipated’ means that the underlying situation 
is—
‘‘(i) sudden, which means quickly coming 
into being or not building up over time; 
‘‘(ii) urgent, which means a pressing and 
compelling need requiring immediate action; 
‘‘(iii) unforeseen, which means not pre-
dicted or anticipated as an emerging need; and
‘‘(iv) temporary, which means not of a per-
manent duration.’’. 
(b) CONFORMING AMENDMENT.—Section 250(c) of 
the Balanced Budget and Emergency Deficit Control Act 
of 1985 is amended by adding at the end the following 
new paragraph: 
‘‘(20) The term ‘emergency’ has the meaning 
given to such term in section 3 of the Congressional 
Budget and Impoundment Control Act of 1974.’’. 
SEC. 203. POINT OF ORDER TO ENFORCE DEFINITION OF 
EMERGENCY. 
(a) IN GENERAL.—Section 312 of the Congressional 
Budget Act of 1974 is amended by adding at the end the 
following new subsection: 
‘‘(g) It shall not be in order in the House of Rep-
resentatives or in the Senate to consider any bill or joint 
resolution, or an amendment thereto or a conference re-
port thereon, which carries an emergency designation pur-
suant to section 251(b)(2)(A) or section 252(e) of the Bal-
anced Budget and Emergency Deficit Control Act of 
1985.’’. 
(b) WAIVERS AND APPEALS IN THE SENATE.—Sec-
tions 904(c)(2) and 904(d)(3) are amended by striking ‘‘, 
and 312(c)’’ and by inserting ‘‘312(c), and 312(g)’’.
Subtitle B—The Byrd Rule 
SEC. 211. LIMITATION ON BYRD RULE. 
(a) PROTECTION OF CONFERENCE REPORTS.—Sec-
tion 313 of the Congressional Budget Act of 1974 is 
amended—
(1) in subsection (b)(1), by striking subpara-
graph (E) through the semicolon at the end thereof 
and by redesignating subparagraph (F) as subpara-
graph (E); 
(2) in subsection (c), by striking ‘‘and again 
upon the submission of a conference report on such 
a reconciliation bill or resolution,’’; 
(3) by striking subsection (d); 
(4) by redesignating subsection (e) as sub-
section (d); and 
(5) in subsection (e), as redesignated—
(A) by striking ‘‘, motion, or conference re-
port’’ the first place it appears and inserting ‘‘, 
or motion’’; and 
(B) by striking ‘‘, motion, or conference re-
port’’ the second and third places it appears 
and inserting ‘‘or motion’’. 
(b) CONFORMING AMENDMENT.—The first sentence 
of section 312(e) of the Congressional Budget Act of 1974
is amended by inserting ‘‘, except for section 313,’’ after 
‘‘Act’’. 
Subtitle C—Spending 
Accountability Reserve 
SEC. 231. SHORT TITLE. 
This subtitle may be cited as the ‘‘Spending Account-
ability Reserve Act of 2003’’. 
SEC. 232. SPENDING ACCOUNTABILITY RESERVE LEDGER. 
(a) ESTABLISHMENT OF LEDGER.—Title III of the 
Congressional Budget Act of 1974 (as amended by section 
119(a)) is further amended by adding at the end the fol-
lowing new section: 
‘‘SPENDING ACCOUNTABILITY RESERVE LEDGER 
‘‘SEC. 318. (a) ESTABLISHMENT OF LEDGER.—The 
chairman of the Committee on the Budget of the House 
of Representatives and the chairman of the Committee on 
the Budget of the Senate shall each maintain a ledger to 
be known as the ‘Spending Accountability Reserve Ledg-
er’. The Ledger shall be divided into entries corresponding 
to the subcommittees of the Committees on Appropria-
tions. Each entry shall consist of three components: the 
‘House Reserve Balance’; the ‘Senate Reserve Balance’; 
and the ‘Joint House-Senate Reserve Balance’. 
‘‘(b) COMPONENTS OF LEDGER.—Each component in 
an entry shall consist only of amounts credited to it under
subsection (c). No entry of a negative amount shall be 
made. 
‘‘(c) CREDIT OF AMOUNTS TO LEDGER.—(1) In the 
House of Representatives or the Senate, whenever a Mem-
ber offers an amendment to an appropriation bill to reduce 
new budget authority in any account, that Member may 
state the portion of such reduction that shall be—
‘‘(A) credited to the House or Senate Reserve 
Balance, as applicable; or 
‘‘(B) allowed to remain within the applicable 
section 302(b) suballocation. 
If no such statement is made, the amount of reduction 
in new budget authority resulting from the amendment 
shall be credited to the House or Senate Reserve Balance, 
as applicable, if the amendment is agreed to.
‘‘(2)(A) Except as provided by subparagraph (B), the 
chairmen of the Committees on the Budget shall, upon 
the engrossment of any appropriation bill by the House 
of Representatives and upon the engrossment of that bill 
by the Senate, credit to the applicable entry balance of 
that House amounts of new budget authority and outlays 
equal to the net amounts of reductions in new budget au-
thority and in outlays resulting from amendments agreed 
to by that House to that bill.
‘‘(B) When computing the net amounts of reductions 
in new budget authority and in outlays resulting from 
amendments agreed to by the House of Representatives 
or the Senate to an appropriation bill, the chairmen of 
the Committees on the Budget shall only count those por-
tions of such amendments agreed to that were so des-
ignated by the Members offering such amendments as 
amounts to be credited to the House or Senate Reserve 
Balance, as applicable, or that fall within the last sentence 
of paragraph (1). 
‘‘(3) The chairmen of the Committees on the Budget 
shall, upon the engrossment of Senate amendments to any 
appropriation bill, credit to the applicable Joint House-
Senate Reserve Balance the amounts of new budget au-
thority and outlays equal to—
‘‘(A) an amount equal to one-half of the sum of 
(i) the amount of new budget authority in the House 
Reserve Balance plus (ii) the amount of new budget 
authority in the Senate Reserve Balance for that 
bill; and 
‘‘(B) an amount equal to one-half of the sum 
of (i) the amount of outlays in the House Reserve 
Balance plus (ii) the amount of outlays in the Sen-
ate Reserve Balance for that bill.
‘‘(4) CALCULATION OF RESERVE SAVINGS IN SEN-
ATE.—For purposes of calculating under this section the 
net amounts of reductions in new budget authority and 
in outlays resulting from amendments agreed to by the 
Senate on an appropriation bill, the amendments reported 
to the Senate by its Committee on Appropriations shall 
be considered to be part of the original text of the bill. 
‘‘(d) 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 
through the end of a fiscal year. 
‘‘(e) TALLY DURING HOUSE CONSIDERATION.—The 
chairman of the Committee on the Budget of the House 
of Representatives shall maintain a running tally of the 
amendments adopted reflecting increases and decreases in 
budget authority in the bill as reported. This tally shall 
be available to Members in the House of Representatives 
during consideration of any appropriations bill by the 
House.’’. 
(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 317 the following 
new item:
‘‘Sec. 318. Spending accountability reserve ledger.’’.
SEC. 233. DOWNWARD ADJUSTMENT OF SECTION 302(a) AL-
LOCATIONS AND SECTION 302(b) SUBALLOCA-
TIONS. 
(a) ALLOCATIONS.—Section 302(a) of the Congres-
sional Budget Act of 1974 is amended by adding at the 
end the following new paragraph: 
‘‘(6) ADJUSTMENT
OF
ALLOCATIONS.—Upon 
the engrossment of Senate amendments to any ap-
propriation bill (as defined in section 318(d)) for a 
fiscal year, the amounts allocated under paragraph 
(1) or (2) to the Committee on Appropriations of 
each House upon the adoption of the most recent 
joint resolution on the budget for that fiscal year 
shall be adjusted downward by the amounts credited 
to the applicable Joint House-Senate Reserve Bal-
ance under section 318(c)(2). The revised levels of 
new budget authority and outlays shall be submitted 
to each House by the chairman of the Committee on 
the Budget of that House and shall be printed in the 
Congressional Record.’’. 
(b) SUBALLOCATIONS.—Section 302(b) of the Con-
gressional Budget Act of 1974 is amended by adding at 
the end the following new sentence: ‘‘Whenever an adjust-
ment is made under subsection (a)(6) to an allocation 
under that subsection, the Committee on Appropriations 
of each House shall make downward adjustments in the
most recent suballocations of new budget authority and 
outlays under this subparagraph to the appropriate sub-
committees of that committee in the total amounts of 
those adjustments under section 318(c)(2). The revised 
suballocations shall be submitted to each House by the 
chairman of the Committee on Appropriations of that 
House and shall be printed in the Congressional Record.’’. 
SEC. 234. PERIODIC REPORTING OF LEDGER STATEMENTS. 
Section 308(b)(1) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following 
new sentence: ‘‘Such reports shall also include an up-to-
date tabulation of the amounts contained in the ledger and 
each entry established by section 318(a).’’. 
SEC. 235. DOWNWARD ADJUSTMENT OF DISCRETIONARY 
SPENDING LIMITS. 
The discretionary spending limits for new budget au-
thority and outlays for any fiscal year set forth in section 
251(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, shall be reduced by the amounts set 
forth in the final regular appropriation bill for that fiscal 
year or joint resolution making continuing appropriations 
through the end of that fiscal year. Those amounts shall 
be the sums of the Joint House-Senate Reserve Balances 
for that fiscal year, as calculated under section 302(a)(6) 
of the Congressional Budget Act of 1974. That bill or joint
resolution shall contain the following statement of law: 
‘‘As required by section 302(a)(6) of the Congressional 
Budget Act of 1974, for fiscal year [insert appropriate fis-
cal year] and each outyear, the adjusted discretionary 
spending limit for new budget authority shall be reduced 
by $ [insert appropriate amount of reduction] and the ad-
justed discretionary limit for outlays shall be reduced by 
$ [insert appropriate amount of reduction] for the fiscal 
year and each outyear.’’. Notwithstanding section 904(c) 
of the Congressional Budget Act of 1974, section 306 as 
it applies to this statement shall not apply. This adjust-
ment shall be reflected in reports under sections 254(e) 
and 254(f) of the Balanced Budget and Emergency Deficit 
Control Act of 1985. 
SEC. 236. REDUCTION IN REVENUES. 
The level of total revenues set forth in the concurrent 
resolution on the budget shall be reduced by the amounts 
set forth in the final regular appropriation bill for that 
fiscal year or joint resolution making continuing appro-
priations through the end of that fiscal year shall be re-
duced by the amount by which the discretionary spending 
limit for outlays is reduced for that fiscal year pursuant 
to section 235. At the same time, such amount shall be 
credited to the pay-as-you-go scorecard pursuant to sec-
tion 252(d) of the Balanced Budget and Emergency Def-
icit Control Act of 1985 for purposes of receipts legislation 
only. This adjustment shall be reflected in reports under 
sections 254(e) and 254(f) of such Act. To the extent that 
the amount so credited is not used for purposes of receipts 
legislation enacted during such fiscal year, it shall be re-
moved from such scorecard. 
Subtitle D—Enhanced Rescissions 
of Budget Authority Identified 
by the President as Wasteful 
Spending 
SEC. 251. SHORT TITLE. 
This title may be cited as the ‘‘Enhanced Rescissions 
Act of 2003’’. 
SEC. 252. ENHANCED CONSIDERATION OF CERTAIN PRO-
POSED RESCISSIONS. 
(a) IN GENERAL.—Part B of title X of the Congres-
sional Budget and Impoundment Control Act of 1974 (2 
U.S.C. 681 et seq.) is amended by redesignating sections 
1013 through 1017 as sections 1014 through 1018, re-
spectively, and by inserting after section 1012 the fol-
lowing new section: 
‘‘ENHANCED CONSIDERATION OF CERTAIN PROPOSED 
RESCISSIONS 
‘‘SEC. 1013. (a) PROPOSED RESCISSION OF BUDGET 
AUTHORITY IDENTIFIED AS WASTEFUL SPENDING.—The 
President may propose, at the time and in the manner
provided in subsection (b), the rescission of any budget 
authority provided in an appropriation Act that he identi-
fies as wasteful spending. If the President proposes a re-
scission of budget authority, he may also propose to reduce 
the appropriate discretionary spending limits for new 
budget authority and outlays flowing therefrom set forth 
in section 251(c) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 by an amount that does not 
exceed the amount of the proposed rescission. Funds made 
available for obligation under this procedure may not be 
proposed for rescission again under this section. 
‘‘(b) TRANSMITTAL OF SPECIAL MESSAGE.—
‘‘(1) The President may transmit to Congress a 
special message proposing to rescind amounts of 
budget authority and include with that special mes-
sage a draft bill that, if enacted, would only rescind 
that budget authority unless the President also pro-
poses a reduction in the appropriate discretionary 
spending limits set forth in section 251(c) of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985. That bill shall clearly identify the 
amount of budget authority that is proposed to be 
rescinded for each program, project, or activity to 
which that budget authority relates.
‘‘(2) In the case of an appropriation Act that 
includes accounts within the jurisdiction of more 
than one subcommittee of the Committee on Appro-
priations, the President in proposing to rescind 
budget authority under this section shall send a sep-
arate special message and accompanying draft bill 
for accounts within the jurisdiction of each sub-
committee. 
‘‘(3) Each special message shall specify, with 
respect to the budget authority proposed to be re-
scinded, the following: 
‘‘(A) The amount of budget authority 
which he proposes to be rescinded. 
‘‘(B) Any account, department, or estab-
lishment of the Government to which such 
budget authority is available for obligation, and 
the specific project or governmental functions 
involved. 
‘‘(C) The reasons why the budget authority 
should be rescinded, including why he considers 
it to be wasteful spending. 
‘‘(D) To the maximum extent practicable, 
the estimated fiscal, economic, and budgetary 
effect (including the effect on outlays and re-
ceipts in each fiscal year) of the proposed re-
scission. 
‘‘(E) All facts, circumstances, and consid-
erations relating to or bearing upon the pro-
posed rescission and the decision to effect the 
proposed rescission, and to the maximum extent 
practicable, the estimated effect of the proposed 
rescission upon the objects, purposes, and pro-
grams for which the budget authority is pro-
vided. 
‘‘(F) A reduction in the appropriate discre-
tionary spending limits set forth in section 
251(c) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, if proposed by the 
President. 
‘‘(c) PROCEDURES
FOR
EXPEDITED
CONSIDER-
ATION.—
‘‘(1)(A) Before the close of the second legisla-
tive day of the House of Representatives after the 
date of receipt of a special message transmitted to 
Congress under subsection (b), the majority leader 
or minority leader of the House of Representatives 
shall introduce (by request) the draft bill accom-
panying that special message. If the bill is not intro-
duced as provided in the preceding sentence, then,
on the third legislative day of the House of Rep-
resentatives after the date of receipt of that special 
message, any Member of that House may introduce 
the bill. 
‘‘(B) The bill shall be referred to the Com-
mittee on Appropriations. The committee shall re-
port the bill without substantive revision and with or 
without recommendation. The bill shall be reported 
not later than the seventh legislative day of that 
House after the date of receipt of that special mes-
sage. If that committee fails to report the bill within 
that period, that committee shall be automatically 
discharged from consideration of the bill, and the 
bill shall be placed on the appropriate calendar. 
‘‘(C) A vote on final passage of the bill shall be 
taken in the House of Representatives on or before 
the close of the 10th legislative day of that House 
after the date of the introduction of the bill in that 
House. If the bill is passed, the Clerk of the House 
of Representatives shall cause the bill to be en-
grossed, certified, and transmitted to the Senate 
within one calendar day of the day on which the bill 
is passed. 
‘‘(2)(A) A motion in the House of Representa-
tives to proceed to the consideration of a bill under
this section shall be highly privileged and not debat-
able. An amendment to the motion shall not be in 
order, nor shall it be in order to move to reconsider 
the vote by which the motion is agreed to or dis-
agreed to. 
‘‘(B) Debate in the House of Representatives 
on a bill under this section shall not exceed 4 hours, 
which shall be divided equally between those favoring 
and those opposing the bill. A motion further to 
limit debate shall not be debatable. It shall not be 
in order to move to recommit a bill under this sec-
tion or to move to reconsider the vote by which the 
bill is agreed to or disagreed to. 
‘‘(C) Appeals from decisions of the Chair relat-
ing to the application of the Rules of the House of 
Representatives to the procedure relating to a bill 
under this section shall be decided without debate. 
‘‘(D) Except to the extent specifically provided 
in the preceding provisions of this subsection, con-
sideration of a bill under this section shall be gov-
erned by the Rules of the House of Representatives. 
It shall not be in order in the House of Representa-
tives to consider any rescission bill introduced pursu-
ant to the provisions of this section under a suspen-
sion of the rules or under a special rule.
‘‘(3) A bill transmitted to the Senate pursuant 
to paragraph (1)(D) shall be referred to its Com-
mittee on Appropriations. That committee shall re-
port the bill without substantive revision and with or 
without recommendation. The bill shall be reported 
not later than the seventh legislative day of the Sen-
ate after it receives the bill. A committee failing to 
report the bill within such period shall be automati-
cally discharged from consideration of the bill, and 
the bill shall be placed upon the appropriate cal-
endar. 
‘‘(4)(A) A motion in the Senate to proceed to 
the consideration of a bill under this section shall be 
privileged and not debatable. An amendment to the 
motion shall not be in order, nor shall it be in order 
to move to reconsider the vote by which the motion 
is agreed to or disagreed to. 
‘‘(B) Debate in the Senate on a bill under this 
section, and all debatable motions and appeals in 
connection therewith (including debate pursuant to 
subparagraph (C)), shall not exceed 10 hours. The 
time shall be equally divided between, and controlled 
by, the majority leader and the minority leader or 
their designees.
‘‘(C) Debate in the Senate or any debatable mo-
tion or appeal in connection with a bill under this 
section shall be limited to not more than 1 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 there-
to, shall be controlled by the minority leader or his 
designee. Such leaders, or either of them, may, from 
time under their control of the passage of a bill, 
allot additional time to any Senator during the con-
sideration of any debatable motion or appeal. 
‘‘(D) A motion in the Senate to further limit 
debate on a bill under this section is not debatable. 
A motion to recommit a bill under this section is not 
in order. 
‘‘(d) AMENDMENT AND DIVISIONS PROHIBITED.—No 
amendment to a bill considered under this section shall 
be in order in either the House of Representatives or the 
Senate. It shall not be in order to demand a division of 
the question in the House of Representatives (or in a Com-
mittee of the Whole) or in the Senate. No motion to sus-
pend the application of this subsection shall be in order 
in either House, nor shall it be in order in either House
to suspend the application of this subsection by unanimous 
consent. 
‘‘(e) REQUIREMENT TO MAKE AVAILABLE FOR OBLI-
GATION.—Any amount of budget authority proposed to be 
rescinded in a special message transmitted to Congress 
under subsection (b) shall be made available for obligation 
on the day after the date on which either House rejects 
the bill transmitted with that special message. 
‘‘(f) DEFINITIONS.—For purposes of this section: 
‘‘(1) The term ‘appropriation Act’ means any 
general or special appropriation Act, and any Act or 
joint resolution making supplemental, deficiency, or 
continuing appropriations. 
‘‘(2) The term ‘legislative day’ means, with re-
spect to either House of Congress, any day of ses-
sion. 
‘‘(3) The term ‘rescind’ means, with respect to 
an appropriation Act, to reduce the amount of budg-
et authority appropriated in that Act, and reducing 
budget authority shall include reducing obligation 
limitations set forth in that Act.’’. 
(b) EXERCISE OF RULEMAKING POWERS.—Section 
904 of the Congressional Budget Act of 1974 (2 U.S.C. 
621 note) is amended—
(1) in subsection (a), by striking ‘‘and 1017’’ 
and inserting ‘‘1012, and 1017’’; and 
(2) in subsection (d), by striking ‘‘section 
1017’’ and inserting ‘‘sections 1012 and 1017’’. 
(c) CONFORMING AMENDMENTS.—
(1) Section 1011 of the Congressional Budget 
Act of 1974 (2 U.S.C. 682(5)) is amended by re-
pealing paragraphs (3) and (5) and by redesignating 
paragraph (4) as paragraph (3). 
(2) Section 1014 of such Act (2 U.S.C. 685) is 
amended—
(A) in subsection (b)(1), by striking ‘‘or 
the reservation’’; and 
(B) in subsection (e)(1), by striking ‘‘or a 
reservation’’ and by striking ‘‘or each such res-
ervation’’. 
(3) Section 1015(a) of such Act (2 U.S.C. 686) 
is amended by striking ‘‘is to establish a reserve or’’, 
by striking ‘‘the establishment of such a reserve or’’, 
and by striking ‘‘reserve or’’ each other place it ap-
pears. 
(4) Section 1017 of such Act (2 U.S.C. 687) is 
amended—
(A) in subsection (a), by striking ‘‘rescis-
sion bill introduced with respect to a special 
message or’’; 
(B) in subsection (b)(1), by striking ‘‘re-
scission bill or’’, by striking ‘‘bill or’’ the second 
place it appears, by striking ‘‘rescission bill with 
respect to the same special message or’’, and by 
striking ‘‘, and the case may be,’’; 
(C) in subsection (b)(2), by striking ‘‘bill 
or’’ each place it appears; 
(D) in subsection (c), by striking ‘‘rescis-
sion’’ each place it appears and by striking ‘‘bill 
or’’ each place it appears; 
(E) in subsection (d)(1), by striking ‘‘re-
scission bill or’’ and by striking ‘‘, and all 
amendments thereto (in the case of a rescission 
bill)’’; 
(F) in subsection (d)(2)—
(i) by striking the first sentence; 
(ii) by amending the second sentence 
to read as follows: ‘‘Debate on any debat-
able motion or appeal in connection with 
an impoundment resolution shall be limited 
to 1 hour, to be equally divided between, 
and controlled by, the mover and the man-
ager of the resolution, except that in the 
event that the manager of the resolution is 
in favor of any such motion or appeal, the 
time in opposition thereto shall be con-
trolled by the minority leader or his des-
ignee.’’; 
(iii) by striking the third sentence; 
and 
(iv) in the fourth sentence, by striking 
‘‘rescission 
bill 
or’’ 
and 
by 
striking 
‘‘amendment, debatable motion,’’ and by 
inserting ‘debatable motion’; 
(G) in paragraph (d)(3), by striking the 
second and third sentences; and 
(H) by striking paragraphs (4), (5), (6), 
and (7) of paragraph (d). 
(d) CLERICAL AMENDMENTS.—The table of sections 
for subpart B of title X of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by redesig-
nating the item relating to sections 1014 through 1018 
as items 1015 through 1019, respectively, and by inserting 
after the item relating to section 1012 the following new 
item:
‘‘Sec. 1013. Enhanced consideration of certain proposed rescissions.’’.
Subtitle E—Extension of Discre-
tionary Spending Limits and 
Paygo 
SEC. 261. AMENDMENTS TO SECTIONS 251, 252, AND 275 OF 
THE BALANCED BUDGET AND EMERGENCY 
DEFICIT CONTROL ACT OF 1985. 
(a) ADJUSTMENTS
TO DISCRETIONARY SPENDING 
LIMITS.—In the matter that precedes subparagraph (A) 
of section 251(b)(2) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985, strike ‘‘through 2002’’. 
(b) DISCRETIONARY
SPENDING
LIMIT.—Section 
251(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended as follows: 
(1) Strike paragraphs (1) through (6) and re-
designate paragraph (7) (which relates to fiscal year 
2003) as paragraph (1) and in such redesignated 
paragraph strike subparagraph (A), redesignate sub-
paragraphs (B) and (C) as subparagraphs (C) and 
(D), respectively, and before subparagraph (C), in-
sert the following new subparagraphs: 
‘‘(A) 
for 
the 
discretionary 
category: 
$754,900,000,000 in new budget authority and 
$704,230,000,000 in outlays;’’
‘‘(B) 
for 
the 
highway 
category: 
$27,728,000,000 in outlays;’’.
(2) Redesignate paragraph (8) as paragraph (2) 
and in such redesignated paragraph strike ‘‘with re-
spect to fiscal year 2004’’, redesignate the remaining 
matter as subparagraph (B), and before such redes-
ignated matter insert the following: 
‘‘(2) with respect to fiscal year 2004—
‘‘(A) 
for 
the 
discretionary 
category: 
$775,020,000,000 in new budget authority and 
$706,970,000,000 in outlays; and’’. 
(3) Redesignate paragraph (9) as paragraph (3) 
and in such redesignated paragraph strike ‘‘with re-
spect to fiscal year 2005’’, redesignate the remaining 
matter as subparagraph (B), and before such redes-
ignated matter insert the following: 
‘‘(3) with respect to fiscal year 2005—
‘‘(A) 
for 
the 
discretionary 
category: 
$801,560,000,000 in new budget authority and 
$779,810,000,000 in outlays; and’’. 
(4) Redesignate paragraph (10) as paragraph 
(4) and in such redesignated paragraph strike ‘‘with 
respect to fiscal year 2006’’, redesignate the remain-
ing matter as subparagraph (B), and before such re-
designated matter insert the following: 
‘‘(4) with respect to fiscal year 2006—
‘‘(A) 
for 
the 
discretionary 
category: 
$828,600,000,000 in new budget authority and 
$793,650,000,000 in outlays; and’’. 
(5) Redesignate paragraphs (11) through (16) 
as paragraphs (6) through (11) and after paragraph 
(4) insert the following new paragraph: 
‘‘(5) with respect to fiscal year 2007 for the 
discretionary category: $862,500,000,000 in new 
budget authority and $812,000,000,000 in outlays;’’. 
(c) EXTENSION
OF
PAY-AS-YOU-GO
REQUIRE-
MENT.—(1) Section 252(a) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by 
striking ‘‘2002’’ and inserting ‘‘2007’’. 
(2) Section 252(b)(1) of such Act is amended by 
striking ‘‘2002’’ and inserting ‘‘2007’’. 
(d) EXPIRATION.—Section 275(b) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended by striking ‘‘2002’’ and inserting ‘‘2007’’ and 
by striking ‘‘2006’’ and inserting ‘‘2011’’.
Subtitle F—Paygo Requirements 
and the On-Budget Surplus 
SEC. 271. PAYGO REQUIREMENTS AND THE ON-BUDGET 
SURPLUS. 
(a) SEQUESTRATION.—(1) Section 252(b)(1) of the 
Balanced Budget and Emergency Deficit Control Act of
1985 is amended by inserting ‘‘, minus the amount for 
the budget year, if any, estimated under paragraph (3)’’ 
after ‘‘as calculated under paragraph (2)’’. 
(2) Section 252(b) of such Act is amended by adding 
at the end the following new paragraph: 
‘‘(3) ESTIMATE
OF
ON-BUDGET
SURPLUS
IN 
EXCESS OF SOCIAL SECURITY SURPLUS.—OMB esti-
mates for the budget year of the amount (if any) of 
the budget surplus as set forth in the OMB seques-
tration preview report as calculated pursuant to sec-
tion 254(c)(3).’’. 
(b) REPORTS.—Section 254(c)(3) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(D) The estimated excess of receipts over 
outlays for the budget year (if any).’’. 
Subtitle G—Treatment of Extra-
neous Appropriations in Omni-
bus Appropriation Measures 
SEC. 281. TREATMENT OF EXTRANEOUS APPROPRIATIONS. 
(a) IN GENERAL.—Title III of the Congressional 
Budget Act of 1974 (as amended by section 232)) is fur-
ther amended by adding at the end the following new sec-
tion:
‘‘TREATMENT OF EXTRANEOUS APPROPRIATIONS IN 
OMNIBUS APPROPRIATION MEASURES 
‘‘SEC. 319. (a) POINT OF ORDER.—It shall not be 
in order in the House of Representatives or the Senate 
to consider an omnibus appropriation measure, or any 
amendment thereto or conference report thereon, that ap-
propriates funds for any program, project, or activity that 
is not within the subject matter jurisdiction of any sub-
committee of the Committee on Appropriations of the 
House of Representatives or Senate, as applicable, with 
jurisdiction over any regular appropriation bill contained 
in such measure. 
‘‘(b) DEFINITIONS.—As used in this section: 
‘‘(1) The term ‘omnibus appropriation measure’ 
means any bill or joint resolution making continuing 
appropriations for a fiscal year and that is com-
prised of more than one regular appropriation bills. 
‘‘(2) The term ‘regular appropriation bill’ 
means any annual appropriation bill making appro-
priations, otherwise making funds available, or 
granting authority, for any of the following cat-
egories of projects and activities: 
‘‘(A) Agriculture, rural development, and 
related agencies programs.
‘‘(B) The Departments of Commerce, Jus-
tice, and State, the judiciary, and related agen-
cies. 
‘‘(C) The Department of Defense. 
‘‘(D) The government of the District of 
Columbia and other activities chargeable in 
whole or in part against the revenues of the 
District. 
‘‘(E) The Departments of Labor, Health 
and Human Services, and Education, and re-
lated agencies. 
‘‘(F) The Department of Housing and 
Urban Development, and sundry independent 
agencies, boards, commissions, corporations, 
and offices. 
‘‘(G) Energy and water development. 
‘‘(H) Foreign assistance and related pro-
grams. 
‘‘(I) The Department of the Interior and 
related agencies. 
‘‘(J) Military construction. 
‘‘(K) The Department of Transportation 
and related agencies.
‘‘(L) The Treasury Department, the U.S. 
Postal Service, the Executive Office of the 
President, and certain independent agencies. 
‘‘(M) The legislative branch.’’. 
(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 318 the following 
new item:
‘‘Sec. 319. Treatment of extraneous appropriations in omnibus appropriation 
measures.’’.
TITLE 
III—BUDGETING 
AND 
MANAGING 
FOR 
RESULTS: 
FULL FUNDING FOR FEDERAL 
RETIREE COSTS 
Subtitle 
A—Accrual 
Funding 
of 
Pensions and Retirement Pay 
for Federal Employees and Uni-
formed Services Personnel 
SEC. 301. CIVIL SERVICE RETIREMENT SYSTEM. 
(a) CIVIL SERVICE RETIREMENT AND DISABILITY 
FUND.—Chapter 83 of title 5, United States Code, is 
amended—
(1) in section 8331—
(A) in paragraph (17)—
(i) by striking ‘‘normal cost’’ and in-
serting ‘‘normal cost percentage’’; and 
(ii) by inserting ‘‘and standards 
(using dynamic assumptions)’’ after ‘‘prac-
tice’’; 
(B) by amending paragraph (18) to read 
as follows: 
‘‘(18) ‘Fund balance’ means the current net as-
sets of the Fund available for payment of benefits, 
as determined by the Office in accordance with ap-
propriate accounting standards, but does not include 
any amount attributable to—
‘‘(A) the Federal Employees’ Retirement 
System; or 
‘‘(B) contributions made under the Federal 
Employees’ Retirement Contribution Temporary 
Adjustment Act of 1983 by or on behalf of any 
individual who became subject to the Federal 
Employees’ Retirement System;’’
(C) by amending paragraph (19) to read 
as follows: 
‘‘(19) ‘accrued liability’ means the estimated ex-
cess of the present value of all benefits payable from 
the Fund to employees and Members, and former 
employees and Members, subject to this subchapter,
and their survivors, over the present value of deduc-
tions to be withheld from the future basic pay of 
employees and Members currently subject to this 
subchapter and of future agency contributions to be 
made in their behalf;’’
(D) in paragraph (27) by striking ‘‘and’’ 
at the end; 
(E) in paragraph (28) by striking the pe-
riod at the end and inserting a semicolon; and 
(F) by adding at the end the following 
paragraphs: 
‘‘(29) ‘dynamic assumptions’ means economic 
assumptions that are used in determining actuarial 
costs and liabilities of a retirement system and in 
anticipating the effects of long-term future—
‘‘(A) investment yields; 
‘‘(B) increases in rates of basic pay; and 
‘‘(C) rates of price inflation; and 
‘‘(30) ‘unfunded liability’ means the estimated 
excess of—
‘‘(A) the actuarial present value of all fu-
ture benefits payable from the Fund under this 
subchapter based on the service of current or 
former employees or Members, over 
‘‘(B) the sum of—
‘‘(i) the actuarial present value of de-
ductions to be withheld from the future 
basic pay of employees and Members cur-
rently subject to this chapter pursuant to 
section 8334; 
‘‘(ii) the actuarial present value of the 
future contributions to be made pursuant 
to section 8334 with respect to employees 
and Members currently subject to this sub-
chapter; 
‘‘(iii) the Fund balance, as defined in 
paragraph (18), as of the date the un-
funded liability is determined; and 
‘‘(iv) any other appropriate amount, 
as determined by the Office of Personnel 
Management in accordance with generally 
accepted actuarial practices and prin-
ciples.’’; 
(2) in section 8334—
(A) in subsection (a)(1)—
(i) by striking the last two sentences; 
(ii) by redesignating that subsection, 
as so amended, as (a)(1)(A); and 
(iii) by adding at the end the fol-
lowing new subparagraphs:
‘‘(B) Except as provided in subparagraph (E), each 
employing agency having any employees or Members sub-
ject to subparagraph (A) shall contribute from amounts 
available for salaries and expenses an amount equal to the 
sum of—
‘‘(i) the product of—
‘‘(I) the normal cost percentage, as deter-
mined for employees (other than employees cov-
ered by clause (ii)), multiplied by 
‘‘(II) the aggregate amount of basic pay 
payable by the agency, for the period involved, 
to employees (under subclause (I)) who are 
within such agency; and 
‘‘(ii) the product of—
‘‘(I) the normal cost percentage, as deter-
mined for Members, Congressional employees, 
law enforcement officers, firefighters, air traffic 
controllers, bankruptcy judges, Court of Fed-
eral Claims judges, United States magistrates, 
judges of the United States Court of Appeals 
for the Armed Forces, members of the Capitol 
Police, nuclear materials couriers, and members 
of the Supreme Court Police, multiplied by 
‘‘(II) the aggregate amount of basic pay 
payable by the agency for the period involved,
to employees and Members (under subclause 
(I)) who are within such agency. 
‘‘(C) In determining the normal cost percentage to 
be applied under subparagraph (B), amounts provided for 
under subparagraph (A) shall be taken into account. 
‘‘(D) Contributions under this paragraph shall be 
paid—
‘‘(i) in the case of law enforcement officers, 
firefighters, 
air 
traffic 
controllers, 
bankruptcy 
judges, Court of Federal Claims judges, United 
States magistrates, judges of the United States 
Court of Appeals for the Armed Forces, members of 
the Supreme Court Police, nuclear materials couriers 
and other employees, from the appropriations or 
fund used to pay such law enforcement officers, fire-
fighters, air traffic controllers, bankruptcy judges, 
Court of Federal Claims judges, United States mag-
istrates, judges of the United States Court of Ap-
peals for the Armed Forces, members of the Su-
preme Court Police, nuclear materials couriers and 
other employees, respectively; 
‘‘(ii) in the case of elected officials, from an ap-
propriation or fund available for payment of other 
salaries of the same office or establishment; and
‘‘(iii) in the case of employees of the legislative 
branch paid by the Clerk of the House of Represent-
atives, from the contingent fund of the House. 
‘‘(E) In the case of the United States Postal Service, 
the Metropolitan Washington Airports Authority, and the 
government of the District of Columbia, an amount equal 
to that withheld under subparagraph (A) shall be contrib-
uted from the appropriation or fund used to pay the em-
ployee.’’; and 
(B) in subsection (k)—
(i) in paragraph (1)—
(I) in subparagraph (A) by strik-
ing ‘‘the first sentence of subsection 
(a)(1) of this section’’ and inserting 
‘‘subsection (a)(1)(A)’’; and 
(II) by amending subparagraph 
(B) to read as follows: 
‘‘(B) the amount of the contribution under sub-
section (a)(1)(B) shall be the amount which would 
have been contributed under such subsection if this 
subsection had not been enacted.’’; and 
(ii) in paragraph (2)(C)(iii) by strik-
ing ‘‘the first sentence of subsection 
(a)(1)’’ 
and 
inserting 
‘‘subsection 
(a)(1)(A)’’; and
(3) in section 8348—
(A) by repealing subsection (f); 
(B) by amending subsection (g) to read as 
follows: 
‘‘(g)(1)(A) Not later than June 30, 2004, the Office 
of the Actuary shall determine the unfunded liability of 
the Fund, as of September 30, 2003, attributable to bene-
fits payable under this chapter and make recommenda-
tions regarding its liquidation. After considering such rec-
ommendations, the Office shall establish an amortization 
schedule, including a series of annual installments com-
mencing October 1, 2004, which provides for the liquida-
tion of such liability by October 1, 2043. 
‘‘(B) The Office shall redetermine the unfunded li-
ability of the Fund as of the close of the fiscal year, for 
each fiscal year beginning after September 30, 2003, 
through the fiscal year ending September 30, 2038, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability by October 1, 2043. 
‘‘(C) The Office shall redetermine the unfunded li-
ability of the Fund as of the close of the fiscal year for 
each fiscal year beginning after September 30, 2038, and 
shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability over five years. 
‘‘(D) Amortization schedules established under this 
paragraph shall be set in accordance with generally accept-
ed actuarial practices and principles, with interest com-
puted at the rate used in the most recent valuation of the 
Civil Service Retirement System. 
‘‘(2) At the beginning of each fiscal year, beginning 
on October 1, 2004, the Office shall notify the Secretary 
of the Treasury of the amount of the first installment 
under the most recent amortization schedule established 
under paragraph (1). The Secretary shall credit that 
amount to the Fund, as a Government contribution, out 
of any money in the Treasury of the United States not 
otherwise appropriated. 
‘‘(3) For the purpose of carrying out paragraph (1) 
with respect to any fiscal year, the Office may—
‘‘(A) require the Board of Actuaries of the Civil 
Service Retirement System to make actuarial deter-
minations and valuations, make recommendations, 
and maintain records in accordance with section 
8347(f); and 
‘‘(B) use the latest actuarial determinations 
and valuations made by such Board of Actuaries.’’;
(C) in subsections (h), (i), and (m) by 
striking ‘‘unfunded’’ and inserting ‘‘accrued’’ 
each place it appears; and 
(D) by adding at the end the following new 
subsection: 
‘‘(n) Under regulations prescribed by the Office, the 
head of an agency may request reconsideration of any 
amount determined to be payable with respect to such 
agency under section 8334(a)(1)(B)–(D). Any such re-
quest shall be referred to the Board of Actuaries of the 
Civil Service Retirement System. The Board of Actuaries 
shall review the computations of the Office and may make 
any adjustment with respect to any such amount which 
the Board determines appropriate. A determination by the 
Board of Actuaries under this subsection shall be final.’’. 
(b) GOVERNMENT CONTRIBUTIONS.—Section 8423 
of title 5, United States Code, is amended—
(1) in subsection (a)(2) by striking ‘‘section 
8422’’ and inserting ‘‘section 8422(a)’’; and 
(2) in subsection (b)(2) by striking ‘‘equal an-
nual installments’’ and inserting ‘‘annual install-
ments set in accordance with generally accepted ac-
tuarial practices and principles’’.
SEC. 302. CENTRAL INTELLIGENCE AGENCY RETIREMENT 
AND DISABILITY SYSTEM. 
(a) Section 101 of the Central Intelligence Agency 
Retirement Act (50 U.S.C. 2001) is amended—
(1) in paragraph (5), to read as follows: 
‘‘(5) UNFUNDED
LIABILITY.—The term ‘un-
funded liability’ means the estimated excess of—
‘‘(A) the actuarial present value of all fu-
ture benefits payable from the Fund under title 
II of this Act based on the service of current 
or former participants, over 
‘‘(B) the sum of—
‘‘(i) the actuarial present value of de-
ductions to be withheld from the future 
basic pay of participants currently subject 
to title II of this Act pursuant to section 
211; 
‘‘(ii) the actuarial present value of the 
future contributions to be made pursuant 
to section 211 with respect to participants 
currently subject to title II of this Act; 
‘‘(iii) the Fund balance, as defined in 
paragraph (4), as of the date the unfunded 
liability is determined; and 
‘‘(iv) any other appropriate amount, 
as determined by the Director in accord-
ance with generally accepted actuarial 
practices and principles.’’; 
(2) in paragraph (6)—
(A) by striking ‘‘ ‘normal cost’ ’’ and in-
serting ‘‘ ‘normal cost percentage’ ’’; and 
(B) by inserting ‘‘and standards (using dy-
namic assumptions)’’ after ‘‘practice’’; and 
(3) by adding at the end the following para-
graph: 
‘‘(10) DYNAMIC ASSUMPTIONS.—The term ‘dy-
namic assumptions’ means economic assumptions 
that are used in determining actuarial costs and li-
abilities of a retirement system and in anticipating 
the effects of long-term future—
‘‘(A) investment yields; 
‘‘(B) increases in rates of basic pay; and 
‘‘(C) rates of price inflation.’’; 
(b) Section 202 of such Act (50 U.S.C. 2012) is 
amended by adding at the end the following: ‘‘The Fund 
is appropriated for the payment of benefits as provided 
by this title.’’. 
(c) Section 211(a)(2) of such Act (50 U.S.C. 
2021(a)(2)) is amended to read as follows: 
‘‘(2) AGENCY
CONTRIBUTIONS.—The Agency 
shall contribute to the Fund the amount computed
in a manner similar to that used under section 
8334(a) of title 5, United States Code, pursuant to 
determinations of the normal cost percentage of the 
Central Intelligence Agency Retirement and Dis-
ability System by the Director. Contributions under 
this paragraph shall be paid from amounts available 
for salaries and expenses.’’; and 
(d) Section 261 of such Act (50 U.S.C. 2091) is 
amended—
(1) by striking subsections (c), (d), and (e); and 
(2) by inserting after subsection (b) the fol-
lowing new subsections: 
‘‘(c)(1) Not later than June 30, 2004, the Director 
shall cause to be made actuarial valuations of the Fund 
that determine the unfunded liability of the Fund, as of 
September 30, 2003, attributable to benefits payable 
under this title and make recommendations regarding its 
liquidation. After considering such recommendations, the 
Director shall establish an amortization schedule, includ-
ing a series of annual installments commencing October 
1, 2004, which provides for the liquidation of such liability 
by October 1, 2043. 
‘‘(2) The Director shall redetermine the unfunded li-
ability of the Fund as of the close of the fiscal year, for 
each fiscal year beginning after September 30, 2003,
through the fiscal year ending September 30, 2038, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability by October 1, 2043. 
‘‘(3) The Director shall redetermine the unfunded li-
ability of the Fund as of the close of the fiscal year for 
each fiscal year beginning after September 30, 2038, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability over five years. 
‘‘(4) Amortization schedules established under this 
subsection shall be set in accordance with generally accept-
ed actuarial practices and principles, with interest com-
puted at the rate used in the most recent valuation of the 
Civil Service Retirement and Disability System. 
‘‘(d) At the beginning of each fiscal year, beginning 
on October 1, 2004, the Director shall notify the Secretary 
of the Treasury of the amount of the first installment 
under the most recent amortization schedule established 
under subsection (c). The Secretary shall credit that 
amount to the Fund, as a Government contribution, out 
of any money in the Treasury of the United States not 
otherwise appropriated. For the purposes of Section 504
of the National Security Act of 1947, this amount shall 
be considered authorized.’’. 
(e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) 
is amended by adding at the end the following new section: 
‘‘SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EM-
PLOYEES DESIGNATED UNDER SECTION 302. 
‘‘(a) In addition to other government contributions 
required by law, the Agency shall contribute to the Civil 
Service Retirement and Disability fund (hereinafter in this 
section referred to as the ‘Fund’) amounts calculated in 
accordance with section 8423 of title 5, United States 
Code, based on the projected number of employees to be 
designated pursuant to section 302 of this Act. In addi-
tion, the Agency, in a manner similar to that established 
for employee contributions to the Fund by section 8422 
of title 5, United States Code, will contribute an amount 
equal to the difference between that which would be con-
tributed by the number of employees projected to be des-
ignated under section 302 and the amounts that are actu-
ally being deducted and contributed from the basic pay 
of an equal number of employees pursuant to section 
8422. The amounts of the Agency’s contributions under 
this subsection shall be determined by the Director of the 
Office of Personnel Management, in consultation with the 
Director, and shall be paid by the Agency from funds
available for salaries and expenses. Agency employees des-
ignated pursuant to section 302 of this Act shall, com-
mencing with such designation, have deducted from their 
basic pay the full amount required by section 8422 of title 
5, United States Code, and such deductions shall be con-
tributed to the Fund. 
‘‘(b)(1) The Director of the Office of Personnel Man-
agement, in consultation with the Director, shall deter-
mine the total amount of unpaid contributions (govern-
ment and employee contributions) and interest attrib-
utable to the number of individuals employed with the 
Agency on September 30, 2004, who are projected to be 
designated under section 302 of this Act, but are not yet 
designated under that section as of that date. The amount 
shall be referred to as the section 302 unfunded liability. 
‘‘(2) Not later than June 30, 2005, the Director of 
the Office of Personnel Management, in consultation with 
the Director, shall establish an amortization schedule, set-
ting forth a series of annual installments commencing 
September 30, 2005, which provides for the liquidation of 
the section 302 unfunded liability by September 30, 2012. 
‘‘(3) At the end of each fiscal year, beginning on Sep-
tember 30, 2005, the Director shall notify the Secretary 
of the Treasury of the amount of the annual installment 
under the amortization schedule established under para-
graph (2) of this subsection. Before closing the accounts 
for that fiscal year, the Secretary shall credit that amount 
to the Fund, out of any money in the Treasury of the 
United States not otherwise appropriated. 
‘‘(c) Amounts paid by the Agency pursuant to this 
section are deemed to be specifically authorized by the 
Congress for the purposes of section 504 of the National 
Security Act of 1947.’’. 
(2) The table of contents of such Act is amended by 
inserting after the item relating to section 307 the fol-
lowing new item:
‘‘Sec. 308. Full funding of retiree costs for employees designated under section 
302.’’.
SEC. 303. FOREIGN SERVICE RETIREMENT AND DISABILITY 
SYSTEM. 
(a) Chapter 8 of Title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended in section 
804 (22 U.S.C. 4044)—
(1) by amending paragraph (5) to read as fol-
lows: 
‘‘(5) ‘normal cost percentage’ means the entry-
age normal cost computed in accordance with gen-
erally accepted actuarial practice and standards 
(using dynamic assumptions) and expressed as a 
level percentage of aggregate basic pay;’’;
(2) by amending paragraph (14) to read as fol-
lows: 
‘‘(14) ‘unfunded liability’ means the estimated 
excess of—
‘‘(A) the actuarial present value of all fu-
ture benefits payable from the Fund under this 
part based on the service of current or former 
participants, over 
‘‘(B) the sum of—
‘‘(i) the actuarial present value of de-
ductions to be withheld from the future 
basic pay of participants currently subject 
to this part pursuant to section 805; 
‘‘(ii) the actuarial present value of the 
future contributions to be made pursuant 
to section 805 with respect to participants 
currently subject to this part; 
‘‘(iii) the Fund balance, as defined in 
paragraph (7), as of the date the unfunded 
liability is determined, excluding any 
amount attributable to the Foreign Service 
Pension System, or contributions made 
under the Federal Employees’ Retirement 
Contribution Temporary Adjustment Act 
of 1983 by or on behalf of any individual
who became subject to the Foreign Service 
Pension System; and 
‘‘(iv) any other appropriate amount, 
as determined by the Secretary of the 
Treasury in accordance with generally ac-
cepted actuarial practices and principles.’’; 
and 
(3)(A) by striking the period at the end of 
paragraph (15) and inserting ‘‘; and’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(16) ‘dynamic assumptions’ means economic 
assumptions that are used in determining actuarial 
costs and liabilities of a retirement system and in 
anticipating the effects of long-term future—
‘‘(A) investment yields; 
‘‘(B) increases in rates of basic pay; and 
‘‘(C) rates of price inflation.’’; 
(b) in section 852 (22 U.S.C. 4071a)—
(1) in paragraph (4)—
(A) by striking ‘‘normal cost’’ and insert-
ing ‘‘normal cost percentage’’; and 
(B) by striking ‘‘by the Secretary of 
State’’; 
(2) in paragraph (7)—
(A) by striking ‘‘supplemental’’ and insert-
ing ‘‘unfunded’’; 
(B) in subparagraph (B)(i) by striking 
‘‘(I)’’ and ‘‘and (II) contributions for past civil-
ian and military service’’; and 
(C) in subparagraph (B)(ii) by inserting 
before the semicolon ‘‘with respect to partici-
pants currently subject to this part’’; and 
(3)(A) at the end of paragraph (8) by striking 
‘‘and’’; 
(B) at the end of paragraph (9) by striking the 
period and insering ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(10) ‘dynamic assumptions’ means economic 
assumptions that are used in determining actuarial 
costs and liabilities of a retirement system and in 
anticipating the effects of long-term future—
‘‘(A) investment yields;
‘‘(B) increases in rates of basic pay; and 
‘‘(C) rates of price inflation.’’; 
(c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))—
(1) by striking the second sentence; 
(2) (by redesignating that subsection, as so 
amended, as (a)(1)(A);
(3) by redesignating the last sentence of that 
subsection, as so amended as (a)(1)(C); 
(4) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) Each employing agency having par-
ticipants shall contribute to the Fund the 
amount computed in a manner similar to that 
used under section 8334(a) of title 5, United 
States Code, pursuant to determinations of the 
normal cost percentage of the Foreign Service 
Retirement and Disability System. Contribu-
tions under this subparagraph shall be paid 
from the appropriations or fund used for pay-
ment of the salary of the participant.’’; 
(5) in subsection (a)(2)(A) by striking ‘‘An 
equal amount shall be contributed by the Depart-
ment’’ and inserting in its place ‘‘Each employing 
agency having participants shall contribute to the 
Fund the amount computed in a manner similar to 
that used under section 8334(a) of title 5, United 
States Code, pursuant to determinations of the nor-
mal cost percentage of the Foreign Service Retire-
ment and Disability System’’; and 
(6) in subsection (a)(2)(B) by striking ‘‘An 
equal amount shall be contributed by the Depart-
ment’’ and inserting in its place ‘‘Each employing 
agency having participants shall contribute to the 
Fund from amounts available for salaries and ex-
penses the amount computed in a manner similar to 
that used under section 8334(a) of title 5, United 
States Code, pursuant to determinations of the nor-
mal cost percentage of the Foreign Service Retire-
ment and Disability System’’; 
(d) by repealing sections 821 and 822 (22 U.S.C. 
4061 and 4062) and by adding the following new section: 
‘‘SEC. 821. UNFUNDED LIABILITY.—(a)(1) Not later 
than June 30, 2004, the Secretary of State shall cause 
to be made actuarial valuations of the Fund that deter-
mine the unfunded liability of the Fund, as of September 
30, 2003, attributable to benefits payable under this sub-
chapter and make recommendations regarding its liquida-
tion. After considering such recommendations, the Sec-
retary of State shall establish an amortization schedule, 
including a series of annual installments commencing Oc-
tober 1, 2004, which provides for the liquidation of such 
liability by October 1, 2043. 
‘‘(2) The Secretary of State shall redetermine the un-
funded liability of the Fund as of the close of the fiscal 
year, for each fiscal year beginning after September 30, 
2003, through the fiscal year ending September 30, 2038,
and shall establish a new amortization schedule, including 
a series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability by October 1, 2043. 
‘‘(3) The Secretary of State shall redetermine the un-
funded liability of the Fund as of the close of the fiscal 
year for each fiscal year beginning after September 30, 
2038, and shall establish a new amortization schedule, in-
cluding a series of annual installments commencing on Oc-
tober 1 of the second subsequent fiscal year, which pro-
vides for the liquidation of such liability over five years. 
‘‘(4) Amortization schedules established under this 
subsection shall be set in accordance with generally accept-
ed actuarial practices and principles, with interest com-
puted at the rate used in the most recent valuation of the 
Foreign Service Retirement and Disability System. 
‘‘(b) At the beginning of each fiscal year, beginning 
on October 1, 2004, the Secretary of State shall notify 
the Secretary of the Treasury of the amount of the first 
installment under the most recent amortization schedule 
established under paragraph (1). The Secretary of the 
Treasury shall credit that amount to the Fund, as a Gov-
ernment contribution, out of any money in the Treasury 
of the United States not otherwise appropriated.’’;
(e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by 
striking ‘‘equal annual installments’’ and inserting ‘‘an-
nual installments set in accordance with generally accept-
ed actuarial practices and principles’’; 
(f) in section 859 (22 U.S.C. 4071h) by adding ‘‘per-
centage’’ after ‘‘normal cost’’; 
(g) in section 802 (22 U.S.C. 4042) by adding at the 
end the following: ‘‘The Fund is appropriated for the pay-
ment of benefits as provided by this subchapter.’’; and 
(h) in section 818 (22 U.S.C. 4058) by striking ‘‘Sys-
tem’’ and inserting ‘‘Systems under this subchapter’’. 
SEC. 304. PUBLIC HEALTH SERVICE COMMISSIONED CORPS 
RETIREMENT SYSTEM. 
(a) IN GENERAL.—Title II of the Public Health Serv-
ice Act (42 U.S.C. 202 et seq.) is amended by adding at 
the end the following new part: 
‘‘PART C—PUBLIC HEALTH SERVICE 
COMMISSIONED CORPS RETIREMENT SYSTEM 
‘‘ESTABLISHMENT AND PURPOSE OF FUND 
‘‘SEC. 251. There is established on the books of the 
Treasury a fund to be known as the Public Health Service 
Commissioned Corps Retirement Fund (hereinafter in this 
part referred to as the ‘Fund’), which shall be adminis-
tered by the Secretary. The Fund shall be used for the 
accumulation of funds in order to finance on an actuarially
sound basis liabilities of the Department of Health and 
Human Services for benefits payable on account of retire-
ment, disability, or death to commissioned officers of the 
Public Health Service and to their survivors pursuant to 
part A of this title. 
‘‘ASSETS OF THE FUND 
‘‘SEC. 252. There shall be deposited into the Fund 
the following, which shall constitute the assets of the 
Fund: 
‘‘(1) Amounts paid into the Fund under section 
255. 
‘‘(2) Any return on investment of the assets of 
the Fund. 
‘‘(3) Amounts transferred into the Fund pursu-
ant to section 304(c) of the Budget Fraud Elimi-
nation Act of 2003.
‘‘PAYMENT FROM THE FUND 
‘‘SEC. 253. There shall be paid from the Fund bene-
fits payable on account of retirement, disability, or death 
to commissioned officers of the Public Health Service and 
to their survivors pursuant to part A of this title. 
‘‘DETERMINATION OF CONTRIBUTIONS TO THE FUND 
‘‘SEC. 254. (a)(1) Not later than June 30, 2004, the 
Secretary shall determine the unfunded liability of the 
Fund attributable to service performed as of September 
30, 2003, which is ‘active service’ for the purpose of sec-
tion 212. The Secretary shall establish an amortization 
schedule, including a series of annual installments com-
mencing October 1, 2004, which provides for the liquida-
tion of such liability by October 1, 2043. 
‘‘(2) The Secretary shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year, for 
each fiscal year beginning after September 30, 2003, 
through the fiscal year ending September 30, 2038, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability by October 1, 2043. 
‘‘(3) The Secretary shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year for 
each fiscal year beginning after September 30, 2038, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability over 5 years. 
‘‘(b) The Secretary shall determine each fiscal year, 
in sufficient time for inclusion in the budget request for 
the following fiscal year, the total amount of Department 
of Health and Human Services contributions to be made 
to the Fund during the fiscal year under section 255(a). 
That amount shall be the sum of—
‘‘(1) the product of—
‘‘(A) the current estimate of the value of 
the single level percentage of basic pay to be de-
termined under subsection (c)(1) at the time of 
the most recent actuarial valuation under sub-
section (c); and 
‘‘(B) the total amount of basic pay ex-
pected to be paid during that fiscal year to 
commissioned officers of the Public Health 
Service on active duty (other than active duty 
for training); and 
‘‘(2) the product of—
‘‘(A) the current estimate of the value of 
the single level percentage of basic pay and of 
compensation (paid pursuant to section 206 of 
title 37, United States Code) to be determined 
under subsection (c)(2) at the time of the most 
recent actuarial valuation under subsection (c); 
and 
‘‘(B) the total amount of basic pay and of 
compensation (paid pursuant to section 206 of 
title 37, United States Code) expected to be 
paid during the fiscal year to commissioned of-
ficers of the Reserve Corps of the Public Health 
Service (other than officers on full-time duty
other than for training) who are not otherwise 
described in subparagraph (A). 
‘‘(c) Not less often than every four years thereafter 
(or by the fiscal year end prior to the effective date of 
any statutory change affecting benefits payable on account 
of retirement, disability, or death to commissioned officers 
or their survivors), the Secretary shall carry out an actu-
arial valuation of benefits payable on account of retire-
ment, disability, or death to commissioned officers of the 
Public Health Service and to their survivors pursuant to 
part A of this title. Each such actuarial valuation shall 
be signed by an enrolled Actuary and shall include—
‘‘(1) a determination (using the aggregate 
entry-age normal cost method) of a single level per-
centage of basic pay for commissioned officers of the 
Public Health Service on active duty (other than ac-
tive duty for training); and 
‘‘(2) a determination (using the aggregate 
entry-age normal cost method) of a single level per-
centage of basic pay and of compensation (paid pur-
suant to section 206 of title 37, United States Code) 
of commissioned officers of the Reserve Corps of the 
Public Health Service (other than officers on full 
time duty other than for training) who are not oth-
erwise described in paragraph (1).
100
‘‘(d) All determinations under this section shall be in 
accordance with generally accepted actuarial principles 
and practices and, where appropriate, shall follow the gen-
eral pattern of methods and assumptions approved by the 
Department of Defense Retirement Board of Actuaries. 
‘‘(e) The Secretary shall provide for the keeping of 
such records as are necessary for determining the actu-
arial status of the Fund. 
‘‘PAYMENTS INTO THE FUND 
‘‘SEC. 255. (a) From amounts available to the De-
partment of Health and Human Services for salaries and 
expenses, the Secretary shall pay into the Fund at the end 
of each month the amount that is the sum of—
‘‘(1) the product of—
‘‘(A) the level percentage of basic pay de-
termined using all the methods and assump-
tions approved for the most recent (as of the 
first day of the current fiscal year) actuarial 
valuation under sections 254(c)(1) (except that 
any statutory change affecting benefits payable 
on account of retirement, disability, or death to 
commissioned officers or their survivors that is 
effective after the date of that valuation and on 
or before the first day of the current fiscal year 
shall be used in such determination); and
101
‘‘(B) the total amount of basic pay accrued 
for that month by commissioned officers of the 
Public Health Service on active duty (other 
than active duty for training); and 
‘‘(2) the product of—
‘‘(A) the level percentage of basic pay and 
of compensation (paid pursuant to section 206 
of title 37, United States Code) determined 
using all the methods and assumptions ap-
proved for the most recent (as of the first day 
of the current fiscal year) actuarial valuation 
under section 254(c)(2) (except that any statu-
tory change affecting benefits payable on ac-
count of retirement, disability, or death to com-
missioned officers or their survivors that is ef-
fective after the date of that valuation and on
or before the first day of the current fiscal year 
shall be used in such determinations); and 
‘‘(B) the total amount of basic pay and of 
compensation (paid pursuant to section 206 of 
title 37, United States Code) accrued for that 
month by commissioned officers of the Reserve 
Corps of the Public Health Service (other than 
officers on full-time duty other than for train-
ing).
102
‘‘(b) At the beginning of each fiscal year, beginning 
on October 1, 2004, the Secretary shall certify to the Sec-
retary of the Treasury the amount of the first installment 
under the most recent amortization schedule established 
under section 254(a). The Secretary of the Treasury shall 
pay into the Fund from the General Fund of the Treasury 
the amount so certified. Such payment shall be the con-
tribution to the Fund for that fiscal year. 
‘‘INVESTMENTS OF ASSETS OF FUND 
‘‘SEC. 256. The Secretary may request the Secretary 
of the Treasury to invest such portion of the Fund as is 
not, in the judgment of the Secretary, required to meet 
the current needs of the Fund. Such investments shall be 
made by the Secretary of the Treasury in public debt secu-
rities with maturities suitable to the needs of the Fund, 
as determined by the Secretary, and bearing interest at 
rates determined by the Secretary of the Treasury, taking 
into consideration current market yields on outstanding 
marketable obligations of the United States of comparable 
maturities. The income on such investments shall be cred-
ited to and form a part of the Fund. 
‘‘IMPLEMENTATION YEAR EXCEPTIONS 
‘‘SEC. 257. (a) To avoid funding shortfalls in the first 
year should formal actuarial determinations not be avail-
able in time for budget preparation, the amounts used in 
the first year in sections 255(a)(1)(A) and 255(a)(2)(A)
103
shall be set equal to those estimates in sections 
254(b)(1)(A) and 254(b)(2)(A) if final determinations are 
not available. The original unfunded liability as defined 
in section 254(a) shall include an adjustment to correct 
for this difference between the formal actuarial determina-
tions and the estimates in sections 254(b)(1)(A) and 
254(b)(2)(A).’’. 
(b) CONFORMING AMENDMENTS.—
(1) CONDITION OF DETAIL.—Section 214 of the 
Public Health Service Act (42 U.S.C. 215) is 
amended by adding at the end the following new 
subsection: 
‘‘(e) The Secretary shall condition any detail under 
subsection (a), (b), or (c) upon the agreement of the exec-
utive department, State, subdivision, Committee of the 
Congress, or institution concerned to pay to the Depart-
ment of Health and Human Services, in advance or by 
way of reimbursement, for the full cost of the detail in-
cluding that portion of the contributions under section 
255(a) that is attributable to the detailed personnel.’’. 
(2) EXEMPTION FROM SEQUESTRATION.—Sec-
tion 255(g)(1) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 
905(g)(1)) is amended—
104
(A) in subparagraph (A), by inserting after 
the item relating to ‘‘payment to the foreign 
service retirement and disability fund’’ the fol-
lowing item: ‘‘Payment to the Public Health 
Service Commissioned Corps Retirement Fund 
(75–0380–0–1–551);’’; and 
(B) in subparagraph (B), by inserting 
after the item relating to the ‘‘Pensions for 
former Presidents’’ the following item: ‘‘Public 
Health Service Commissioned Corps Retirement 
Fund (75–8274–0–7–602);’’. 
(c) TRANSFER OF APPROPRIATIONS.—There shall be 
transferred on October 1, 2005, into the fund established 
under section 251 of the Public Health Service Act, as 
added by subsection (a), any obligated or unobligated bal-
ances of appropriations made to the Department of Health 
and Human Services that are currently available for bene-
fits payable on account of retirement, disability, or death 
to commissioned officers of the Public Health Service and 
to their survivors pursuant to part A of title II of the Pub-
lic Health Service Act, and amounts so transferred shall 
be part of the assets of the Fund.
105
SEC. 305. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN-
ISTRATION COMMISSIONED OFFICER CORPS 
RETIREMENT SYSTEM. 
(a) IN GENERAL.—The National Oceanic and Atmos-
pheric Administration Commissioned Officer Corps Act of 
2002 (title II of Public Law 107–372) is amended by in-
serting after section 246 (33 U.S.C. 3046) the following 
new section: 
‘‘SEC. 246A. (a) ESTABLISHMENT AND PURPOSE OF 
NOAA COMMISSIONED OFFICER CORPS RETIREMENT 
FUND.—(1) There is established on the books of the 
Treasury a fund to be known as the National Oceanic and 
Atmospheric Administration Commissioned Officer Corps 
Retirement Fund (hereinafter in this section referred to 
as the ‘Fund’), which shall be administered by the Sec-
retary. The Fund shall be used for the accumulation of 
funds in order to finance on an actuarially sound basis 
liabilities of the Department of Commerce under military 
retirement and survivor benefit programs for the commis-
sioned officers corps. 
‘‘(2) The term ‘military retirement and survivor ben-
efit program’ means—
‘‘(A) the provisions of this title and title 10, 
United States Code, creating entitlement to, or de-
termining, the amount of retired pay;
106
‘‘(B) the programs under the jurisdiction of the 
Department of Defense providing annuities for sur-
vivors and members and former members of the 
Armed Forces, including chapter 73 of title 10, sec-
tion 4 of Public Law 92–425, and section 5 of Pub-
lic Law 96–202, as made applicable to the commis-
sioned officer corps by section 261. 
‘‘(b) ASSETS OF THE FUND.—There shall be depos-
ited into the Fund the following, which shall constitute 
the assets of the Fund: 
‘‘(1) Amounts paid into the Fund under sub-
section (e). 
‘‘(2) Any return on investment of the assets of 
the Fund. 
‘‘(3) Amounts transferred into the Fund pursu-
ant to section 305(c) of the Budget Fraud Elimi-
nation Act of 2003.
‘‘(c) PAYMENTS FROM THE FUND.—There shall be 
paid from the Fund benefits payable on account of mili-
tary retirement and survivor benefit programs to commis-
sioned officers of the commissioned officer corps and their 
survivors. 
‘‘(d) DETERMINATION OF CONTRIBUTIONS TO THE 
FUND.—(1)(A) Not later than June 30, 2004, the Sec-
retary shall determine the unfunded liability of the Fund
108
that fiscal year under (e). The amount shall be the product 
of—
‘‘(A) the current estimate of the value of the 
single level percentage of basic pay to be determined 
under subsection (e) at the time of the most recent 
actuarial valuation under paragraph (3); and 
‘‘(B) the total amount of basic pay expected to 
be paid during that fiscal year to commissioned offi-
cers of NOAA on active duty. 
‘‘(3) Not less often then every four years (or by the 
fiscal year end before the effective date of any statutory 
change affecting benefits payable on account of retire-
ment, disability, or death to commissioned officers or their 
survivors), the Secretary shall carry out an actuarial valu-
ation of benefits payable on account of military retirement 
and survivor benefit programs to commissioned officers of 
the Administration and to their survivors. Each such actu-
arial valuation shall be signed by an enrolled Actuary and 
shall include a determination (using the aggregate entry-
age normal cost method) of a single level percentage of 
basic pay for commissioned officers on active duty. 
‘‘(4) All determinations under this section shall be in 
accordance with generally accepted actuarial principles 
and practices, and, where appropriate, shall follow the 
general pattern of methods and assumptions approved by
109
the Department of Defense Retirement Board of Actu-
aries. 
‘‘(5) The Secretary shall provide for the keeping of 
such records as are necessary for determining the actu-
arial status of the Fund. 
‘‘(e) PAYMENTS
INTO
THE
FUND.—(1) From 
amounts appropriated to the National Oceanic Atmos-
pheric Administration for salaries and expenses, the Sec-
retary shall pay into the Fund at the end of each month 
the amount that is the product of—
‘‘(A) the level percentage of basic pay deter-
mined using all the methods and assumptions ap-
proved for the most recent (as of the first day of the 
current fiscal year) actuarial valuation under sub-
section (d) (except that any statutory change affect-
ing benefits payable on account of military retire-
ment and survivor benefit programs to commissioned 
officers of the Administration and to their survivors 
that is effective date after the date of that valuation 
and on or before the first day of the current fiscal 
year shall be used in such determination); and 
‘‘(B) the total amount of basic pay accrued for 
that month by commissioned officers on active duty. 
‘‘(2)(A) At the beginning of each fiscal year, the Sec-
retary shall determine the sum of—
110
‘‘(i) the amount of the payment for that year 
under the amortization of the original unfunded li-
ability of the Fund; 
‘‘(ii) the amount (including any negative 
amount) for that year under the most recent amorti-
zation schedule determined by the Secretary for the 
amortization of any cumulative actuarial gain or loss 
to the Fund, resulting from changes in benefits; and 
‘‘(iii) the amount (including any negative 
amount) for that year under the most recent amorti-
zation schedule determined by the Secretary for the 
amortization or any cumulative actuarial gain or loss 
to the Fund resulting from changes in actuarial as-
sumptions and from experience different from the 
assumed since the last valuation. 
The Secretary shall promptly certify the amount of the 
sum to the Secretary of the Treasury. 
‘‘(B) Upon receiving the certification pursuant to 
paragraph (1), the Secretary of the Treasury shall 
promptly pay into the Fund from the General Fund of 
the Treasury the amount so certified. Such payment shall 
be the contribution to the Fund for that fiscal year. 
‘‘(f) INVESTMENT OF ASSETS OF THE FUND.—The 
Secretary may request the Secretary of the Treasury to 
invest such portion of the Fund as is not, in the judgment
111
of the Secretary, required to meet the current needs of 
the Fund. Such investments shall be made by the Sec-
retary of the Treasury in public debt securities with matu-
rities suitable to the needs of the Fund, as determined 
by the Secretary, and bearing interest at rates determined 
by the Secretary of the Treasury, taking into consideration 
current market yields on outstanding marketable obliga-
tions of the United States of comparable maturities. The 
income of such investments shall be credited to and form 
a part of the Fund. 
‘‘(g) IMPLEMENTATION YEAR EXCEPTIONS.—(1) To 
avoid funding shortfalls in the first year should formal ac-
tuarial determinations not be available in time for budget 
preparation, the amounts used in the first year in sub-
section (e)(1)(A) shall be set equal to the estimate in sub-
section (d)(2)(A) if final determinations are not available. 
The original unfunded liability as determined in sub-
section (d)(1) shall include an adjustment to correct for 
this difference between the formal actuarial determina-
tions and the estimates in subsection (d)(2)(A).’’. 
(b) EXEMPTION FROM SEQUESTRATION.—Section 
255(g)(1)(B) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(B)) is 
amended by striking ‘‘National Oceanic and Atmospheric 
Administration retirement (13–1450–0–1–306);’’ and in-
112
serting ‘‘National Oceanic and Atmospheric Administra-
tion Commissioned Officer Corps Retirement Fund;’’. 
(c) TRANSFER OF APPROPRIATIONS.—There shall be 
transferred on October 1, 2005, into the fund established 
under section 246A(a) of the National Oceanic and At-
mospheric Administration Commissioned Officer Corps 
Act of 2002 (title II of Public Law 107–372, as added 
by subsection (a)), any obligated and unobligated balance 
of appropriations made to the Department of Commerce 
that are available as of the date of the enactment of this 
Act for benefits payable on account of military retirement 
and survivor benefit programs to commissioned officers of 
the NOAA Commissioned Officer Corps and to their sur-
vivors, and amounts so transferred shall be part of the 
assets of the Fund, effective October 1, 2005. 
(d) EFFECTIVE DATE.—Subsection (c) (relating to 
payments from the Fund) and (e) (relating to payments 
into the Fund) of section 246A of the National Oceanic 
and Atmospheric Administration Commissioned Officer 
Corps Act of 2002 (title II of Public Law 107–372, as 
added by subsection (a)), shall take effect on October 1, 
2005.
SEC. 306. COAST GUARD MILITARY RETIREMENT SYSTEM. 
(a) ACCRUAL FUNDING FOR COAST GUARD RETIRE-
MENT.—
113
(1) IN
GENERAL.—Chapter 11 of title 14, 
United States Code, is amended by adding at the 
end the following new subchapter: 
‘‘SUBCHAPTER V—COAST GUARD MILITARY 
RETIREMENT FUND
‘‘§ 441. Establishment and purpose of Fund; defini-
tions 
‘‘(a) ESTABLISHMENT OF FUND; PURPOSE.—There 
is established on the books of the Treasury a fund to be 
known as the Coast Guard Military Retirement Fund 
(hereinafter in this subchapter referred to as the ‘Fund’), 
which shall be administered by the Secretary. The Fund 
shall be used for the accumulations of funds in order to 
finance on an actuarially sound basis liabilities of the 
Coast Guard under military retirement and survivor ben-
efit programs. 
‘‘(b) MILITARY RETIREMENT AND SURVIVOR BEN-
EFIT PROGRAMS DEFINED.—In this subchapter, the term 
‘military retirement and survivor benefit programs’ 
means—
‘‘(1) the provisions of this title and title 10 cre-
ating entitlement to, or determining the amount of, 
retired pay; 
‘‘(2) the programs providing annuities for sur-
vivors of members and former members of the
115
‘‘(2) Retired pay payable under chapter 1223 of 
title 10 to former members of the Coast Guard and 
the former United States Lighthouse Service. 
‘‘(3) Benefits payable under programs that pro-
vide annuities for survivors of members and former 
members of the armed forces, including chapter 73 
of title 10, section 4 of Public Law 92–425, and sec-
tion 5 of Public Law 96–402. 
‘‘(4) Amounts payable under section 1048(h) of 
title 10. 
‘‘(b) AVAILABILITY OF ASSETS OF THE FUND.—The 
assets of the Fund are hereby made available for payments 
under subsection (a). 
‘‘§ 444. Determination of contributions to the Fund 
‘‘(a) INITIAL UNFUNDED LIABILITY.—(1) Not later 
than June 30, 2004, the Secretary shall determine the un-
funded liability of the Fund attributable to service per-
formed as of September 30, 2003, which is ‘active service’ 
for the purposes of section 212. The Secretary shall estab-
lish an amortization schedule, including a series of annual 
installments commencing October 1, 2004, which provides 
for the liquidation of such liability by October 1, 2043. 
‘‘(2) The Secretary shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year, for 
each beginning after September 30, 2003, through the fis-
116
cal year ending September 30, 2038, and shall establish 
a new amortization schedule, including a series of annual 
installments commencing on October 1 of the second sub-
sequent fiscal year, which provides for the liquidation of 
such liability by October 1, 2043. 
‘‘(3) The Secretary shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year for 
each fiscal year beginning after September 30, 2038, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability over five years. 
‘‘(b) ANNUAL CONTRIBUTIONS FOR CURRENT SERV-
ICES.—(1) The Secretary shall determine each fiscal year, 
in sufficient time for inclusion in the budget request for 
the following fiscal year, the total amount of Department 
of Homeland Security, or Department of Defense, con-
tributions to be made to the Fund during that fiscal year 
under section 445(a) of this title. That amount shall be 
the sum of the following: 
‘‘(A) The product of—
‘‘(i) the current estimate of the value of 
the single level percentage of basic pay to be de-
termined under subsection (c)(1)(A) at the time
117
of the most recent actuarial valuation under 
subsection (c); and 
‘‘(ii) the total amount of basic pay ex-
pected to be paid during that fiscal year to 
members of the Coast Guard on active duty 
(other than active duty for training). 
‘‘(B) The product of—
‘‘(i) the current estimate of the value of 
the single level percentage of basic pay and of 
compensation (paid pursuant to section 206 of 
title 37) to be determined under subsection 
(c)(1)(B) at the time of the most recent actu-
arial valuation under subsection (c); and 
‘‘(ii) the total amount of basic pay and 
compensation (paid pursuant to section 206 of 
title 37) expected to be paid during that fiscal 
year to members of the Coast Guard Ready Re-
serve (other than members on full-time Reserve 
duty other than for training) who are not other-
wise described in subparagraph (A)(ii). 
‘‘(2) The amount determined under paragraph (1) for 
any fiscal year is the amount needed to be appropriated 
to the Department of Homeland Security for that fiscal 
year for payments to be made to the Fund during that 
year under section 445(a) of this title. The President shall
118
include not less than the full amount so determined in the 
budget transmitted to Congress for that fiscal year under 
section 1105 of title 31. The President may comment and 
make recommendations concerning any such amount. 
‘‘(c) PERIODIC ACTUARIAL VALUATIONS.—(1) Not 
less often than every four years (or before the effective 
date of any statutory change affecting benefits payable on 
account of retirement, disability, or death to members of 
the Coast Guard or their survivors), the Secretary shall 
carry out an actuarial valuation of the Coast Guard mili-
tary retirement and survivor benefit programs. Each actu-
arial valuation of such programs shall be signed by an en-
rolled actuary and shall include—
‘‘(A) a determination (using the aggregate 
entry-age normal cost method) of a single level per-
centage of basic pay for members of the Coast 
Guard on active duty (other than active duty for 
training); and 
‘‘(B) a determination (using the aggregate 
entry-age normal cost method) of single level per-
centage of basic pay and of compensation (paid pur-
suant to section 206 of title 37) for members of the 
Ready Reserve of the Coast Guard (other than mem-
bers on full-time Reserve duty other than for train-
119
ing) who are not otherwise described in subpara-
graph (A). 
‘‘(2) Such single level percentages shall be used for 
the purposes of subsection (b) and section 445(a) of this 
title. 
‘‘(d) USE
OF GENERALLY ACCEPTED ACTUARIAL 
PRINCIPLES AND PRACTICES.—All determinations under 
this section shall be in accordance with generally accepted 
actuarial principles and practices and, where appropriate, 
shall follow the general pattern of methods and assump-
tions approved by the Department of Defense Retirement 
Board of Actuaries. 
‘‘(e) RECORDS.—The Secretary shall provide for the 
keeping of such records as are necessary for determining 
the actuarial status of the Fund. 
‘‘§ 445. Payments into the Fund 
‘‘(a) MONTHLY ACCRUAL CHARGE FOR CURRENT 
SERVICES.—From amounts appropriated to the Coast 
Guard for salaries and expenses, the Secretary shall pay 
into the Fund at the end of each month as the Department 
of Homeland Security, or Department of Defense, con-
tribution to the Fund for that month the amount that is 
the sum of the following:
‘‘(1) The product of—
120
‘‘(A) the level percentage of basic pay de-
termined using all the methods and assump-
tions approved for the most recent (as of the 
first day of the current fiscal year) actuarial 
valuation under section 444(c)(1)(A) of this 
title (except that any statutory change in the 
military retirement and survivor benefit systems 
that is effective after the date of that valuation 
and on or before the first day of the current fis-
cal year shall be used in such determination); 
and 
‘‘(B) the total amount of basic pay accrued 
for that month by members of the Coast Guard 
on active duty (other than active duty for train-
ing). 
‘‘(2) The product of—
‘‘(A) the level percentage of basic pay and 
compensation (accrued pursuant to section 206 
of title 37) determined using all the methods 
and assumptions approved for the most recent 
(as of the first day of the current fiscal year) 
actuarial valuation under section 444(c)(1)(B) 
of this title (except that any statutory change 
in the military retirement and survivor benefit 
systems that is effective after the date of that
121
valuation and on or before the first day of the 
current fiscal year shall be used in such deter-
mination); and 
‘‘(B) the total amount of basic pay and of 
compensation (paid pursuant to section 206 of 
title 37) accrued for that month by members of 
the Ready Reserve (other than members of full-
time Reserve duty other than for training) who 
are not otherwise described in paragraph 
(1)(B). 
‘‘(b) ANNUAL PAYMENT FOR UNFUNDED LIABIL-
ITIES.—(1) At the beginning of each fiscal year, beginning 
on October 1, 2004, the Secretary shall certify to the Sec-
retary of the Treasury the amount of the first installment 
under the most recent amortization schedule established 
under section 254(a). The Secretary of the Treasury shall 
promptly pay into the Fund from the General Fund of 
the Treasury the amount so certified. Such payment shall 
be the contribution to the Fund for that fiscal year. 
‘‘§ 446. Investment of assets of the Fund 
‘‘The Secretary may request the Secretary of the 
Treasury to invest such portion of the Fund as is not, 
in the judgment of the Secretary, required to meet the 
current needs of the Fund. Such investments shall be 
made by the Secretary of the Treasury in public debt secu-
122
rities with maturities suitable to the needs of the Fund, 
as determined by the Secretary, and bearing interest at 
rates determined by the Secretary of the Treasury, taking 
into consideration current market yields on outstanding 
marketable obligations of the United States of comparable 
maturities. The income on such investments shall be cred-
ited to and form a part of the Fund.’’. 
(2) TECHNICAL AMENDMENTS.—Such chapter 
is further amended—
(A) by amending the center heading after 
the table of sections to read as follows: 
‘‘SUBCHAPTER I—OFFICERS’’; 
(B) by amending the center heading after 
section 336 to read as follows: 
‘‘SUBCHAPTER II—ENLISTED MEMBERS’’; 
(C) by amending the center heading after 
section 373 to read as follows: 
‘‘SUBCHAPTER III—GENERAL PROVISIONS’’; 
and 
(D) by amending the center heading after 
section 425 to read as follows: 
‘‘SUBCHAPTER IV—SPECIAL PROVISIONS’’. 
(3) CLERICAL AMENDMENTS.—The table of sec-
tions at the beginning of such chapter is amended—
123
(A) by striking ‘‘OFFICERS’’ at the begin-
ning of the table and inserting ‘‘SUBCHAPTER 
I—OFFICERS’’; 
(B) by striking ‘‘ENLISTED
MEMBERS’’ 
after the item relating to section 336 and in-
serting 
‘‘SUBCHAPTER
II—ENLISTED
MEM-
BERS’’; 
(C) by striking ‘‘GENERAL
PROVISIONS’’ 
after the item relating to section 373 and in-
serting ‘‘SUBCHAPTER
III—GENERAL
PROVI-
SIONS’’; 
(D) by striking ‘‘SPECIAL
PROVISIONS’’ 
after the item relating to section 425 and in-
serting 
‘‘SUBCHAPTER
IV—SPECIAL
PROVI-
SIONS’’; and 
(E) by adding at the end the following:
‘‘SUBCHAPTER V—COAST GUARD MILITARY RETIREMENT FUND 
‘‘441. Establishment and purpose of Fund; definitions. 
‘‘442. Assets of the Fund. 
‘‘443. Payments from the Fund. 
‘‘444. Determination of contributions to the Fund. 
‘‘445. Payments into the Fund. 
‘‘446. Investment of assets of the Fund.’’.
(b) IMPLEMENTATION YEAR EXCEPTIONS.—To avoid 
funding shortfalls in the first year of implementation of 
subchapter V of chapter 11 of title 14, United States 
Code, as added by subsection (a), if formal actuarial deter-
minations are not available in time for budget preparation, 
the amounts used in the first year under sections
124
445(a)(1)(A) and 445(a)(2)(A) of such title shall be set 
equal to those estimates in sections 444(b)(1)(A)(i) and 
444(b)(1)(B)(i), respectively, of such title if final deter-
minations are not available. The original unfunded liabil-
ity, as defined in section 444(a) of such title, shall include 
an adjustment to correct for this difference between the 
formal actuarial determinations and the estimates in sec-
tions 444(b)(1)(A)(i) and 444(b)(1)(B)(i) of such title.
(c) CONFORMING AMENDMENT.—Subparagraph (B) 
of section 255(g)(1) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)) 
is amended by striking ‘‘Retired Pay, Coast Guard (69–
0241–0–1–403)’’ and inserting ‘‘Coast Guard Military Re-
tirement Fund (69–0241–01–403)’’. 
(d) TRANSFER OF EXISTING BALANCES.—
(1) TRANSFER.—There shall be transferred into 
the Fund on October 1, 2004, any obligated and un-
obligated balances of appropriations made to the De-
partment of Homeland Security that are currently 
available for retired pay, and amounts so transferred 
shall be part of the assets of the Fund. 
(2) FUND
DEFINED.—For purposes of para-
graph (1), the term ‘‘Fund’’ means the Coast Guard 
Military Retirement Fund established under section
125
441 of title 14, United States Code, as added by 
subsection (a). 
(e) EFFECTIVE DATE.—Sections 443 (relating to 
payments from the Fund) and 445 (relating to payments 
into the Fund) of title 14, United States Code, as added 
by subsection (a), shall take effect on October 1, 2004. 
Subtitle 
B—Accrual 
Funding 
of 
Post-Retirement Health Benefits 
Costs for Federal Employees 
SEC. 311. FEDERAL EMPLOYEES HEALTH BENEFITS FUND. 
(a) Section 8906 of title 5, United States Code, is 
amended—
(1) by redesignating subsection (c) as sub-
section (c)(1) and by adding at the end the following 
new paragraphs:
‘‘(2) In addition to Government contributions re-
quired by subsection (b) and paragraph (1), each employ-
ing agency shall contribute amounts as determined by the 
Office to be necessary to prefund the accruing actuarial 
cost of post-retirement health benefits for each of the 
agency’s current employees who are eligible for Govern-
ment contributions under this section. Amounts under this 
paragraph shall be paid by the employing agency separate 
from other contributions under this section, from the ap-
126
propriations or fund used for payment of the salary of the 
employee, on a schedule to be determined by the Office. 
‘‘(3) Paragraph (2) shall not apply to the United 
States Postal Service or the government of the District 
of Columbia.’’; and 
(2) by amending subsection (g)(1) to read as 
follows: 
‘‘(g)(1) Except as provided in paragraphs (2) and 
(3), all Government contributions authorized by this sec-
tion for health benefits for an annuitant shall be paid from 
the Employees Health Benefits Fund to the extent that 
funds are available in accordance with section 8909(h)(6) 
and, if necessary, from annual appropriations which are 
authorized to be made for that purpose and which may 
be made available until expended.’’. 
(b) Section 8909 of title 5, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(h)(1) Not later than June 30, 2005, the Office 
shall determine the existing liability of the Fund for post-
retirement health benefits, excluding the liability of the 
United States Postal Service for service under section 
8906(g)(2), under this chapter as of September 30, 2005. 
The Office shall establish an amortization schedule, in-
cluding a series of annual installments commencing Sep-
127
tember 30, 2005, which provides for the liquidation of 
such liability by September 30, 2042. 
‘‘(2) At the close of each fiscal year, for fiscal years 
beginning after September 30, 2004, the Office shall de-
termine the supplemental liability of the Fund for post-
retirement health benefits, excluding the liability attrib-
utable to the United States Postal Service for service sub-
ject to section 8906(g)(2), and shall establish an amortiza-
tion schedule, including a series of annual installments 
commencing on September 30 of the subsequent fiscal 
year, which provides for liquidation of such supplemental 
liability over 30 years. 
‘‘(3) Amortization schedules established under this 
paragraph shall be set in accordance with generally accept-
ed actuarial practices and principles. 
‘‘(4) At the end of each fiscal year on and after Sep-
tember 30, 2005, the Office shall notify the Secretary of 
the Treasury of the amounts of the next installments 
under the most recent amortization schedules established 
under paragraphs (1) and (2). Before closing the accounts 
for the fiscal year, the Secretary shall credit the sum of 
these amounts (including in that sum any negative 
amount for the amortization of the supplemental liability) 
to the Fund, as a Government contribution, out of any
128
money in the Treasury of the United States not otherwise 
appropriated. 
‘‘(5) For the purpose of carrying out paragraphs (1) 
and (2), the Office shall perform or arrange for actuarial 
determinations and valuations and shall prescribe reten-
tion of such records as it considers necessary for making 
periodic actuarial valuations of the Fund. 
‘‘(6) Notwithstanding subsection (b), the amounts de-
posited into the Fund pursuant to this subsection and sec-
tion 8906(c)(2) to prefund post-retirement health benefits 
costs shall be segregated within the Fund so that such 
amounts, as well as earnings and proceeds under sub-
section (c) attributable to them, may be used exclusively 
for the purpose of paying Government contributions for 
post-retirement health benefits costs. When such amounts 
are used in combination with amounts withheld from an-
nuitants to pay for health benefits, a portion of the con-
tributions shall then be set aside in the Fund as described 
in subsection (b). 
‘‘(7) Under this subsection, ‘supplemental liability’ 
means—
‘‘(A) the actuarial present value for future post-
retirement health benefits that are the liability of 
the Fund, less 
‘‘(B) the sum of—
129
‘‘(i) the actuarial present value of all fu-
ture contributions by agencies and annuitants 
to the Fund toward those benefits pursuant to 
section 8906; 
‘‘(ii) the present value of all scheduled am-
ortization payments to the Fund pursuant to 
paragraphs (1) and (2); 
‘‘(iii) the Fund balance as of the date the 
supplemental liability is determined, to the ex-
tent that such balance is attributable to post-re-
tirement benefits; and 
‘‘(iv) any other appropriate amount, as de-
termined by the Office in accordance with gen-
erally accepted actuarial practices and prin-
ciples.’’.
SEC. 312. FUNDING UNIFORMED SERVICES HEALTH BENE-
FITS FOR ALL RETIREES. 
Title 10, United States Code, is amended—
(1) in the title of chapter 56, by striking ‘‘DE-
PARTMENT OF DEFENSE MEDICARE-
ELIGIBLE’’ 
and 
inserting 
‘‘UNIFORMED 
SERVICES’’; 
(2) in section 1111—
(A) in subsection (a)—
130
(i) by striking ‘‘Department of De-
fense Medicare-Eligible’’ and inserting 
‘‘Uniformed Services’’; 
(ii) by striking ‘‘Department of De-
fense under’’; and 
(iii) by striking ‘‘for medicare-eligible 
beneficiaries’’; 
(B) in subsection (c)—
(i) by striking ‘‘The Secretary of De-
fense may’’ and inserting ‘‘The Secretary 
of Defense shall’’; 
(ii) by striking ‘‘with any other’’ and 
inserting ‘‘with each’’;
(iii) by striking ‘‘Any such agree-
ment’’ and inserting ‘‘Such agreements’’; 
and 
(iv) by striking ‘‘administering Sec-
retary may’’ and inserting ‘‘administrative 
Secretary shall’’; 
(3) in section 1113—
(A) in subsection (a)—
(i) by striking ‘‘and are medicare eli-
gible’’; 
(ii) by striking ‘‘who are medicare eli-
gible’’; and
131
(iii) by adding at the end the fol-
lowing new sentence: ‘‘For the fiscal year 
starting October 1, 2003, only, the pay-
ments will be solely for the costs of mem-
bers or former members of a uniformed 
service who are entitled to retired or re-
tainer pay and are medicare-eligible, and 
eligible dependents or survivors who are 
medicare-eligible.’’; 
(B) in subsection (c)(1), by striking ‘‘who 
are medicare-eligible’’; 
(C) in subsection (d), by striking ‘‘who are 
medicare-eligible’’; and 
(D) in subsection (f), by striking ‘‘If’’ and 
inserting ‘‘When’’; 
(4) in section 1114, in subsection (a)(1), by 
striking ‘‘Department of Defense Medicare-Eligible’’ 
and inserting ‘‘Uniformed Services’’; 
(5) in section 1115—
(A) in subsection (b)(2), by striking ‘‘The 
amount determined under paragraph (1) for 
any fiscal year is the amount needed to be ap-
propriated to the Department of Defense (or to 
the other executive department having jurisdic-
tion over the participating uniformed service)’’