I
103D CONGRESS
1ST SESSION
H. R. 883
To require a balanced Federal budget by fiscal year 2000 and each year
thereafter, to protect Social Security, to provide for zero-based budgeting
and decennial sunsetting, to impose spending caps on the growth of
entitlements during fiscal years 1994 through 2000, and to enforce
those requirements through a budget process involving the President
and Congress and sequestration.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 16, 1993
Mr. ARMEY (for himself, Mr. KASICH, Mr. MCCOLLUM, and Mr. HORN) intro-
duced the following bill; which was referred jointly to the Committees on
Government Operations and Rules
A BILL
To require a balanced Federal budget by fiscal year 2000
and each year thereafter, to protect Social Security, to
provide 
for 
zero-based 
budgeting 
and 
decennial
sunsetting, to impose spending caps on the growth of
entitlements during fiscal years 1994 through 2000, and
to enforce those requirements through a budget process
involving the President and Congress and sequestration.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Balanced Budget Im-
plementation Act’’.
SEC. 2. EFFECTIVE DATES.
Except as otherwise specified, this Act and the
amendments made by it shall take effect on its date of
enactment and shall apply to fiscal year 1993 and subse-
quent fiscal years.
TITLE I—JOINT BUDGET
RESOLUTION
SEC. 101. JOINT BUDGET RESOLUTION.
(a) DEFINITIONS.—Paragraph (4) of section 3 of the
Congressional Budget Act of 1974 is amended to read as
follows:
‘‘(4) the term ‘joint resolution on the budget’
means—
‘‘(A) a joint resolution setting forth the
congressional budget for the United States Gov-
ernment for a fiscal year as provided in section
301; and
‘‘(B) any other joint resolution revising the
congressional budget for the United States Gov-
ernment for a fiscal year as described in section
304.’’.
(b) JOINT RESOLUTION ON THE BUDGET.—(1) Sec-
tion 300 is amended by striking ‘‘concurrent resolution’’
each place it appears and inserting ‘‘joint resolution’’.
(2) Section 301(a) of the Congressional Budget Act
of 1974 is amended by striking ‘‘concurrent resolution’’
each place it appears including in the caption and insert-
ing ‘‘joint resolution’’.
(3) Section 301(b) is amended by striking ‘‘concur-
rent resolution’’ each place it appears including in the cap-
tion and inserting ‘‘joint resolution’’.
(4) Section 301(c) is amended by striking ‘‘concur-
rent resolution’’ each place it appears and inserting ‘‘joint
resolution’’.
(5) Section 301(e) is amended by striking ‘‘concur-
rent resolution’’ each place it appears and inserting ‘‘joint
resolution’’.
(6) Section 301(f) is amended by striking ‘‘concur-
rent resolution’’ each place it appears and inserting ‘‘joint
resolution’’.
(7) Section 301(g) is amended by striking ‘‘concur-
rent resolution’’ each place it appears and inserting ‘‘joint
resolution’’.
(8) Section 301(h) is amended by striking ‘‘concur-
rent resolution’’ and inserting ‘‘joint resolution’’.
(9) Section 301(i) is amended by striking ‘‘concur-
rent resolution’’ each place it appears and inserting ‘‘joint
resolution’’.
(10) The section heading of section 301 is amended
by striking ‘‘ANNUAL ADOPTION OF CONCURRENT’’
and inserting ‘‘ANNUAL ADOPTION OF JOINT’’.
(11) The table of contents set forth in section 1(b)
of the Congressional Budget and Impoundment Control
Act of 1974 is amended by striking ‘‘Annual adoption of
the concurrent’’ in the item relating to section 301 and
inserting ‘‘Annual adoption of the joint’’.
(12) Section 302 is amended by striking ‘‘concurrent
resolution’’ each place it appears and inserting ‘‘joint reso-
lution’’.
(13) Section 303, including the heading, is amended
by striking ‘‘concurrent resolution’’ each place it appears
and inserting ‘‘joint resolution’’.
(14) The table of contents set forth in section 1(b)
of the Congressional Budget and Impoundment Control
Act of 1974 is amended by striking ‘‘Concurrent’’ in the
item relating to section 303 and inserting ‘‘Joint’’.
(15) Section 304 is amended by striking ‘‘concurrent
resolution’’, including in the heading, each place it appears
and inserting ‘‘joint resolution’’.
(16) The table of contents set forth in section 1(b)
of the Congressional Budget and Impoundment Control
Act of 1974 is amended by striking ‘‘Concurrent’’ in the
item relating to section 304 and inserting ‘‘Joint’’.
(17) Section 305 is amended by striking ‘‘concurrent
resolution’’, including in the heading, each place it appears
and inserting ‘‘joint resolution’’.
(18) Section 308 is amended by striking ‘‘concurrent
resolution’’ each place it appears and inserting ‘‘joint reso-
lution’’.
(19) Section 310 is amended by striking ‘‘concurrent
resolution’’ each place it appears and inserting ‘‘joint reso-
lution’’.
(20) Section 311 is amended by striking ‘‘concurrent
resolution’’ each place it appears and inserting ‘‘joint reso-
lution’’.
TITLE II—ZERO BASED BUDGET-
ING 
AND 
DECENNIAL
SUNSETTING
SEC. 201. REAUTHORIZATION OF DISCRETIONARY PRO-
GRAMS AND UNEARNED ENTITLEMENTS.
(a) FISCAL YEAR 1994.—Effective October 1, 1993,
spending authority for each unearned entitlement and
high-cost discretionary spending program is terminated
unless such spending authority is reauthorized after the
date of enactment of this Act.
(b) FISCAL YEAR 1995.—Effective October 1, 1994,
spending authority for each discretionary spending pro-
gram (not including high-cost discretionary spending pro-
grams) is terminated unless such spending authority is re-
authorized after the date of enactment of this Act.
(c) DEFINITIONS.—For purposes of this title—
(1) the term ‘‘unearned entitlement’’ means an
entitlement not earned by service or paid for in total
or in part by assessments or contributions such as
Social Security, veterans’ benefits, retirement pro-
grams, and medicare; and
(2) the term ‘‘high-cost discretionary program’’
means the most expensive one-third of discretionary
program within each budget function account.
SEC. 202. POINT OF ORDER.
(a) IN GENERAL.—It shall not be in order in the
House of Representatives or the Senate to consider any
bill, joint resolution, amendment, or conference report that
includes any provision that appropriates funds unless such
appropriation has been previously authorized by law.
(b) WAIVER OR SUSPENSION.—This section may be
waived or suspended in the House of Representatives or
the Senate only by the affirmative vote of three-fifths of
the Members, duly chosen and sworn.
SEC. 203. DECENNIAL SUNSETTING.
(a) FIRST DECENNIAL CENSUS YEAR.—Effective on
the first day of the fiscal year beginning in the first decen-
nial census year after the year 2000 and each 10 years
thereafter, the spending authority described in section
201(a) is terminated unless such spending authority is re-
authorized after the last date the spending authority was
required to be reauthorized under this title.
(b) FIRST DECENNIAL CENSUS YEAR.—Effective on
the first day of the fiscal year beginning in the year after
the first decennial census year after the year 2000 and
each 10 years thereafter, the spending authority described
in section 201(b) is terminated unless such spending au-
thority is reauthorized after the last date the spending au-
thority was required to be reauthorized under this title.
TITLE III—SPENDING CAPS ON
THE GROWTH OF ENTITLE-
MENTS FOR FISCAL YEARS
1994 THROUGH 2000
SEC. 301. SPENDING CAPS ON GROWTH OF ENTITLEMENTS
AND MANDATORIES.
(a) CAP ON GROWTH OF ENTITLEMENTS.—Effective
for each of the fiscal years 1994 through 2000, the total
level of entitlement and mandatory spending, excluding
Social Security, shall not exceed the total level for the pre-
vious fiscal year increased by the consumer price index,
and the growth in eligible population.
(b) SEQUESTRATION.—Within 15 days after Con-
gress adjourns to end a session, and on the same day as
a sequestration (if any) under title IV (pursuant to the
amendments made by such title), there shall be a seques-
tration to reduce the amount of entitlement and manda-
tory spending for the fiscal year beginning in the year the
Congress adjourns by any amount necessary to reduce
such spending to the level set forth in subsection (a) un-
less that amount is less than $250,000,000.
(c) UNIFORM
REDUCTIONS; LIMITATIONS.—The
amount required to be sequestered for the fiscal year
under subsection (a) shall be obtained from nonexempt di-
rect spending accounts by actions taken in the following
order:
(1) FIRST.—The reductions in the programs
specified in section 303(a) (National Wool Act and
special milk), section 303(b) (guaranteed student
loans), and section 303(c) (foster care and adoption
assistance) shall be made.
(2) SECOND.—Any additional reductions that
may be required shall be achieved by reducing each
remaining nonexempt direct spending account by the
uniform percentage necessary to achieve those addi-
tional reductions, except that—
(A) the low-income programs specified in
section 303(d) shall not be reduced by more
than 1 percent;
(B) the retirement and veterans benefits
specified in section 303(e) shall not be reduced
by more than 2 percent in the manner specified
in that section; and
(C) the medicare programs shall not be re-
duced by more than 4 percent in the manner
specified in section 303(f).
The limitations set forth in subparagraphs (A), (B),
and (C) shall be applied iteratively, and after each
iteration the uniform percentage applicable to all
other programs under this paragraph shall be in-
creased (if necessary) to a level sufficient to achieve
the reductions required by this paragraph.
SEC. 302. EXEMPT PROGRAMS AND ACTIVITIES.
(a) DESCRIPTIONS AND LISTS.—Except as provided
in subsection (b), the following budget accounts or activi-
ties shall be exempt from sequestration—
(1) net interest;
(2) all payments to trust funds from excise
taxes or other receipts or collections properly cred-
itable to those trust funds;
(3) all payments from one Federal direct spend-
ing budget account to another Federal budget ac-
count; and all intragovernmental funds including
those from which funding is derived primarily from
other Government accounts, except to the extent
that such funds are augmented by direct appropria-
tions for the fiscal year for which the order is in ef-
fect;
(4) activities resulting from private donations,
bequests, or voluntary contributions to the Govern-
ment;
(5) payments from any revolving fund or trust-
revolving fund (or similar activity) that provides de-
posit insurance or other Government insurance, Gov-
ernment guarantees, or any other form of contingent
liability, to the extent those payments result from
contractual or other legally binding commitments of
the Government at the time of any sequestration;
(6) credit liquidating and financing accounts;
(7) the following accounts, which largely fulfill
requirements of the Constitution or otherwise make
payments to which the Government is committed—
Administration of Territories, Northern Mari-
ana Islands Covenant grants (14–0412–0–1–806);
Bureau of Indian Affairs, miscellaneous pay-
ments to Indians (14–2303–0–1–452);
Bureau of Indian Affairs, miscellaneous trust
funds, tribal trust funds (14–9973–0–7–999);
Claims, defense;
Claims, judgments, and relief act (20–1895–0–
1–806);
Compact of Free Association, economic assist-
ance pursuant to Public Law 99–658 (14–0415–0–
1–806);
Compensation of the President (11–0001–0–1–
802);
Customs Service, miscellaneous permanent ap-
propriations (20–9992–0–2–852);
Eastern Indian land claims settlement fund
(14–2202–0–1–806);
Farm Credit System Financial Assistance Cor-
poration, interest payments (20–1850–0–1–351);
Internal Revenue collections of Puerto Rico
(20–5737–0–2–852);
Panama Canal Commission, operating expenses
and capital outlay (95–5190–0–2–403);
Payments of Vietnam and USS Pueblo pris-
oner-of-war claims (15–0104–0–1–153);
Payments to copyright owners (03–5175–0–2–
376);
Payments to the United States territories, fiscal
assistance (14–0418–0–1–801);
Payments to widows and heirs of deceased
Members of Congress (00–0215–0–1–801);
Salaries of Article III judges;
Soldier’s and Airmen’s Home, payment of
claims (84–8930–0–7–705);
Washington Metropolitan Area Transit Author-
ity, interest payments (46–0300–0–1–401).
(8) the following noncredit special, revolving, or
trust-revolving funds—
Coinage profit fund (20–5811–0–2–803);
Comptroller of the Currency;
Director of the Office of Thrift Supervision;
Exchange Stabilization Fund (20–4444–0–3–
155);
Federal Housing Finance Board;
Foreign Military Sales trust fund (11–82232–
0–7–155);
(9) Thrift Savings Fund;
(10) appropriations for the District of Columbia
to the extent they are appropriations of locally
raised funds;
(11)(A) any amount paid as regular unemploy-
ment compensation by a State from its account in
the Unemployment Trust Fund (established by sec-
tion 904(a) of the Social Security Act);
(B) any advance made to a State from the Fed-
eral unemployment account (established by section
904(g) of such Act) under title XII of such Act and
any advance appropriated to the Federal unemploy-
ment account pursuant to section 1203 of such Act;
and
(C) any payment made from the Federal Em-
ployees Compensation Account (as established under
section 909 of such Act) for the purpose of carrying
out chapter 85 of title 5, United States Code, and
funds appropriated or transferred to or otherwise
deposited in such Account;
(12) the earned income tax credit (payments to
individuals pursuant to section 32 of the Internal
Revenue Code of 1986).
(b) FEDERAL ADMINISTRATIVE EXPENSES.—
(1) Notwithstanding any provision of law other
than paragraph (3), administrative expenses in-
curred by the departments and agencies, including
independent agencies, of the Federal Government in
connection with any program, project, activity, or ac-
count shall be subject to reduction pursuant to any
sequestration order, without regard to any exemp-
tion, exception, limitation, or special rule otherwise
applicable with respect to such program, project, ac-
tivity, or account, and regardless of whether the pro-
gram, project, activity, or account is self-supporting
and does not receive appropriations.
(2) Payments made by the Federal Government
to reimburse or match administrative costs incurred
by a State or political subdivision under or in con-
nection with any program, project, activity, or ac-
count shall not be considered administrative ex-
penses of the Federal Government for purposes of
this section, and shall be subject to sequestration to
the extent (and only to the extent) that other pay-
ments made by the Federal Government under or in
connection with that program, project, activity, or
account are subject to that reduction or sequestra-
tion; except that Federal payments made to a State
as reimbursement of administrative costs incurred
by that State under or in connection with the unem-
ployment compensation programs specified in sub-
section (a)(11) shall be subject to reduction or se-
questration under this part notwithstanding the ex-
emption otherwise granted to such programs under
that subsection.
(3) Notwithstanding any other provision of law,
the administrative expenses of the following pro-
grams shall be exempt from sequestration:
(A) Comptroller of the Currency.
(B) Federal Deposit Insurance Corpora-
tion.
(C) Office of Thrift Supervision.
(D) National Credit Union Administration.
(E) National Credit Union Administration,
central liquidity facility.
(F) Federal Retirement Thrift Investment
Board.
(G) Resolution Funding Corporation.
(H) Resolution Trust Corporation.
(I) Board of Governors of the Federal
Reserve System.
SEC. 303. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
(a) NATIONAL WOOL ACT AND THE SPECIAL MILK
PROGRAM.—Automatic spending increases are increases
in outlays due to changes in indexes in the following
programs:
(1) National Wool Act; and
(2) Special milk program.
In those programs all amounts other than the automatic
spending increases shall be exempt from reduction under
any sequestration order.
(b) THE GUARANTEED STUDENT LOAN PROGRAM.—
(1) Any reductions which are required to be achieved from
the student loan programs operated pursuant to part B
of title IV of the Higher Education Act of 1965 under
any sequestration order shall be achieved only from loans
described in paragraphs (2) and (3) by the application of
the measures described in such paragraphs.
(2) For any loan made during the period beginning
on the date that a sequestration order takes effect with
respect to a fiscal year, the rate used in computing the
special 
allowance 
payment 
pursuant 
to 
section
438(b)(2)(A)(iii) of such Act for each of the first four spe-
cial allowance payments for such loan shall be adjusted
by reducing such rate by the lesser of—
(A) 0.40 percent, or
(B) the percentage by which the rate specified
in such section exceeds 3 percent.
(3) For any loan made during the period beginning
on the date that a sequestration order takes effect with
respect to a fiscal year, the origination fee which is author-
ized to be collected pursuant to section 438(c)(2) of such
Act shall be increased by 0.50 percent.
(c) FOSTER CARE AND ADOPTION ASSISTANCE PRO-
GRAMS.—Any sequestration order shall make the reduc-
tion otherwise required under the foster care and adoption
assistance programs (established by part E of title IV of
the Social Security Act) only with respect to payments and
expenditures made by States in which increases in foster
care maintenance payment rates or adoption assistance
payment rates (or both) are to take effect during the fiscal
year involved, and only to the extent that the required re-
duction can be accomplished by applying a uniform per-
centage reduction to the Federal matching payments that
each such State would otherwise receive under section 474
of that Act (for such fiscal year) for that portion of the
State’s payments attributable to the increases taking ef-
fect during that year. No State’s matching payments from
the Federal Government for foster care maintenance pay-
ments or for adoption assistance maintenance payments
may be reduced by a percentage exceeding the applicable
domestic sequestration percentage. No State may, after
the date of the enactment of this Act, make any change
in the timetable for making payments under a State plan
approved under part E of title IV of the Social Security
Act which has the effect of changing the fiscal year in
which expenditures under such part are made.
(d) LOW-INCOME ENTITLEMENTS.—(1) Benefit pay-
ments or payments to States or other entities for the pro-
grams listed in paragraph (2) shall not be reduced by
more than 1 percent under any sequestration order. When
reduced under an end-of-session sequestration order, those
benefit reductions shall occur starting with the payment
made at the start of January. When reduced under a with-
in-session sequestration order, those benefit reductions
shall occur starting with the next periodic payment.
(2) The programs referred to in paragraph (1) are
the following:
Aid to families with dependent children (75–
0412–0–1–609);
Child nutrition (12–3539–0–1–605);
Food stamp programs (12–3505–0–1–605) and
(12–3550–0–1–605);
Grants to States for medicaid (75–0512–0–1–
551); and
Supplemental security income program (75–
0406–0–1–609);
(e) FEDERAL RETIREMENT AND VETERANS’ PRO-
GRAMS.—
(1) For each of the programs listed in para-
graph (2) and except as provided in paragraph (3),
monthly (or other periodic) benefit payments shall
be reduced by the uniform percentage applicable to
direct spending sequestrations for such programs
under section 301(c)(2), which shall in no case ex-
ceed 2 percent under any sequestration order. When
reduced under an end-of-session sequestration order,
those benefit reductions shall occur starting with the
payment made at the start of January or 7 weeks
after the order is issued, whichever is later. When
reduced under a within-session sequestration order,
those benefit reductions shall occur starting with the
next periodic payment.
(2) The programs subject to paragraph (1) are:
Benefits payable under sections 3(a),
3(f)(3), 4(a), or 4(f) of the Railroad Retirement
Act of 1974;
Benefits under chapter 21 of title 38,
United States Code, relating to specially adapt-
ed housing and mortgage-protection life insur-
ance for certain veterans with service-connected
disabilities (36–0137–0–1–702);
Benefits under section 907 of title 38,
United States Code, relating to burial benefits
for veterans who die as a result of service-con-
nected disability (36–0155–0–1–701);
Benefits under chapter 39 of title 38,
United States Code, relating to automobiles and
adaptive equipment for certain disabled veter-
ans and members of the Armed Forces (36–
0137–0–1–702);
Black lung benefits (20–8144–0–7–601);
Central Intelligence Agency retirement and
disability system fund (56–3400–0–1–054);
Civil service retirement and disability fund
(24–8135–0–7–602);
Comptrollers general retirement system
(05–0107–0–1–801);
Foreign service retirement and disability
fund (19–8186–0–7–602);
Judicial survivors’ annuities fund (10–
8110–0–7–602);
Longshoremen’s and harborworkers’ com-
pensation benefits (16–9971–0–7–601);
Military retirement fund (97–8097–0–7–
602);
National Oceanic and Atmospheric Admin-
istration retirement (13–1450–0–1–306);
Pensions for former Presidents (47–0105–
0–1–802);
Railroad retirement tier II (60–8011–0–7–
601);
Railroad supplemental annuity pension
fund (60–8012–0–7–602);
Retired pay, Coast Guard (69–0241–0–1–
403);
Retirement pay and medical benefits for
commissioned officers, Public Health Service
(75–0379–0–1–551);
Special benefits, Federal Employees’ Com-
pensation Act (16–1521–0–1–600);
Special benefits for disabled coal miners
(75–0409–0–1–601);
Tax Court judges survivors annuity fund
(23–8115–0–7–602);
Veterans’ compensation (36–0153–0–1–
701); and
Veterans’ pensions (36–0154–0–1–701).
(f) MEDICARE PROGRAM.—
(1) CALCULATION OF REDUCTION IN INDIVID-
UAL PAYMENT AMOUNTS.—To achieve the total per-
centage reduction in those programs required by sec-
tion 301, the percentage reduction that shall apply
to payments under the health insurance programs
under title XVIII of the Social Security Act for serv-
ices furnished after any sequestration order is issued
shall be such that the reduction made in payments
under that order shall achieve the required total per-
centage reduction in those payments for that fiscal
year as determined on a 12-month basis.
(2) TIMING
OF
APPLICATION
OF
REDUC-
TIONS.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), if a reduction is made under
paragraph (1) in payment amounts pursuant to
a sequestration order, the reduction shall be ap-
plied to payment for services furnished after the
effective date of the order. For purposes of the
previous sentence, in the case of inpatient serv-
ices furnished for an individual, the services
shall be considered to be furnished on the date
of the individual’s discharge from the inpatient
facility.
(B) PAYMENT ON THE BASIS OF COST RE-
PORTING PERIODS.—In the case in which pay-
ment for services of a provider of services is
made under title XVIII of the Social Security
Act on a basis relating to the reasonable cost
incurred for the services during a cost reporting
period of the provider, if a reduction is made
under paragraph (1) in payment amounts pur-
suant to a sequestration order, the reduction
shall be applied to payment for costs for such
services incurred at any time during each cost
reporting period of the provider any part of
which occurs after the effective date of the
order, but only (for each such cost reporting pe-
riod) in the same proportion as the fraction of
the cost reporting period that occurs after the
effective date of the order.
(3) NO INCREASE IN BENEFICIARY CHARGES IN
ASSIGNMENT-RELATED
CASES.—If a reduction in
payment amounts is made under paragraph (1) for
services for which payment under part B of title
XVIII of the Social Security Act is made on the
basis of an assignment described in section
1842(b)(3)(B)(ii), 
in 
accordance 
with 
section
1842(b)(6)(B), or under the procedure described in
section 1870(f)(1) of such Act, the person furnishing
the services shall be considered to have accepted
payment of the reasonable charge for the services,
less any reduction in payment amount made pursu-
ant to a sequestration order, as payment in full.
(4) NO EFFECT ON COMPUTATION OF AAPCC.—
In computing the adjusted average per capita cost
for purposes of section 1876(a)(4) of the Social Se-
curity Act, the Secretary of Health and Human
Services shall not take into account any reductions
in payment amounts which have been or may be ef-
fected under this subtitle.
(g) FEDERAL PAY.—
(1) IN GENERAL.—Except as provided in sec-
tion 302(b)(3), new budget authority to pay Federal
personnel shall be reduced by the uniform percent-
age calculated under section 301(c), but no seques-
tration order may reduce or have the effect of reduc-
ing the rate of pay to which any individual is enti-
tled under any statutory pay system (as increased by
any amount payable under section 5304 of title 5,
United States Code, or section 302 of the Federal
Employees Pay Comparability Act of 1990) or the
rate of any element of military pay to which any in-
dividual is entitled under title 37, United States
Code, or any increase in rates of pay which is sched-
uled to take effect under section 5303 of title 5,
United States Code, section 1009 of title 37, United
States Code, or any other provision of law.
(2) DEFINITIONS.—For purposes of this sub-
section:
(A) The term ‘‘statutory pay system’’ shall
have the meaning given that term in section
5302(1) of title 5, United States Code.
(B) The term ‘‘elements of military pay’’
means—
(i) the elements of compensation of
members of the uniformed services speci-
fied in section 1009 of title 37, United
States Code,
(ii) allowances provided members of
the uniformed services under sections 403a
and 405 of such title, and
(iii) cadet pay and midshipman pay
under section 203(c) of such title.
(C) The term ‘‘uniformed services’’ shall
have the meaning given that term in section
101(3) of title 37, United States Code.
(h) CHILD SUPPORT ENFORCEMENT PROGRAM.—
Any sequestration order shall accomplish the full amount
of any required reduction in expenditures under sections
455 and 458 of the Social Security Act by reducing the
Federal matching rate for State administrative costs
under such program, as specified (for the fiscal year in-
volved) in section 455(a) of such Act, to the extent nec-
essary to reduce such expenditures by that amount.
(i) EXTENDED UNEMPLOYMENT COMPENSATION.—
(1) A State may reduce each weekly benefit payment made
under the Federal-State Extended Unemployment Com-
pensation Act of 1970 for any week of unemployment oc-
curring during any period with respect to which payments
are reduced under an order issued under this title by a
percentage not to exceed the percentage by which the Fed-
eral payment to the State under section 204 of such Act
is to be reduced for such week as a result of such order.
(2) A reduction by a State in accordance with sub-
paragraph (A) shall not be considered as a failure to fulfill
the requirements of section 3304(a)(11) of the Internal
Revenue Code of 1954.
(j) COMMODITY CREDIT CORPORATION.—
(1) POWERS AND AUTHORITIES OF THE COM-
MODITY CREDIT CORPORATION.—This title shall not
restrict the Commodity Credit Corporation in the
discharge of its authority and responsibility as a cor-
poration to buy and sell commodities in world trade,
to use the proceeds as a revolving fund to meet
other obligations and otherwise operate as a corpora-
tion, the purpose for which it was created.
(2) REDUCTION
IN
PAYMENTS
MADE
UNDER
CONTRACTS.—(A) Payments and loan eligibility
under any contract entered into with a person by the
Commodity Credit Corporation prior to the time any
sequestration order has been issued shall not be re-
duced by an order subsequently issued. Subject to
subparagraph (B), after any sequestration order is
issued for a fiscal year, any cash payments made by
the Commodity Credit Corporation—
(i) under the terms of any one-year con-
tract entered into in or after such fiscal year
and after the issuance of the order; and
(ii) out of an entitlement account,
to any person (including any producer, lender, or
guarantee entity) shall be subject to reduction under
the order.
(B) Each contract entered into with producers
or producer cooperatives with respect to a particular
crop of a commodity and subject to reduction under
subparagraph (A) shall be reduced in accordance
with the same terms and conditions. If some, but
not all, contracts applicable to a crop of a commod-
ity have been entered into prior to the issuance of
any sequestration order, the order shall provide that
the necessary reduction in payments under contracts
applicable to the commodity be uniformly applied to
all contracts for succeeding crops of the commodity,
under the authority provided in paragraph (3).
(3) DELAYED REDUCTION IN OUTLAYS PERMIS-
SIBLE.—Notwithstanding any other provision of this
title, if any sequestration order is issued with re-
spect to a fiscal year, any reduction under the order
applicable to contracts described in paragraph (2)
may provide for reductions in outlays for the ac-
count involved to occur in the fiscal years following
the fiscal year to which the order applies.
(4) UNIFORM PERCENTAGE RATE OF REDUC-
TION AND OTHER LIMITATIONS.—All reductions de-
scribed in paragraph (2) that are required to be
made in connection with any sequestration order
with respect to a fiscal year—
(A) shall be made so as to ensure that out-
lays for each program, project, activity, or ac-
count involved are reduced by a percentage rate
that is uniform for all such programs, projects,
activities, and accounts, and may not be made
so as to achieve a percentage rate of reduction
in any such item exceeding the rate specified in
the order; and
(B) with respect to commodity price sup-
port and income protection programs, shall be
made in such manner and under such proce-
dures as will attempt to ensure that—
(i) uncertainty as to the scope of ben-
efits under any such program is mini-
mized;
(ii) any instability in market prices
for agricultural commodities resulting from
the reduction is minimized; and
(iii) normal production and marketing
relationships among agricultural commod-
ities (including both contract and non-con-
tract commodities) are not distorted.
In meeting the criterion set out in clause (iii)
of subparagraph (B) of the preceding sentence,
the President shall take into consideration that
reductions under an order may apply to pro-
grams for two or more agricultural commodities
that use the same type of production or market-
ing resources or that are alternative commod-
ities among which a producer could choose in
making annual production decisions.
(5) CERTAIN
AUTHORITY
NOT
TO
BE
LIM-
ITED.—Nothing in this title shall limit or reduce in
any way any appropriation that provides the Com-
modity Credit Corporation with funds to cover the
Corporation’s net realized losses.
(k) THE JOBS PORTION OF AFDC.—
(1) FULL
AMOUNT
OF
SEQUESTRATION
RE-
QUIRED.—Any sequestration order shall accomplish
the full amount of any required reduction of the job
opportunities and basic skills training program
under section 402(a)(19), and part F of title VI, of
the Social Security Act, in the manner specified in
this subsection. Such an order may not reduce any
Federal matching rate pursuant to section 403(l) of
the Social Security Act.
(2) NEW ALLOTMENT FORMULA.—
(A) 
GENERAL
RULE.—Notwithstanding
section 403(k) of the Social Security Act, each
State’s percentage share of the amount avail-
able after sequestration for direct spending pur-
suant to section 403(l) of such Act shall be
equal to that percentage of the total amount
paid to the States pursuant to such section
403(l) for the prior fiscal year that is rep-
resented by the amount paid to such State pur-
suant to such section 403(l) for the prior fiscal
year, except that a State may not be allotted an
amount under this subparagraph that exceeds
the amount that would have been allotted to
such State pursuant to such section 403(k) had
the sequestration not been in effect.
(B) REALLOTMENT OF AMOUNTS REMAIN-
ING UNALLOTTED AFTER APPLICATION OF GEN-
ERAL RULE.—Any amount made available after
sequestration for direct spending pursuant to
section 403(l) of the Social Security Act that
remains unallotted as a result of subparagraph
(A) of this paragraph shall be allotted among
the States in proportion to the absolute dif-
ference between the amount allotted, respec-
tively, to each State as a result of such sub-
paragraph and the amount that would have
been allotted to such State pursuant to section
403(k) of such Act had the sequestration not
been in effect, except that a State may not be
allotted an amount under this subparagraph
that results in a total allotment to the State
under this paragraph of more than the amount
that would have been allotted to such State
pursuant to such section 403(k) had the seques-
tration not been in effect.
(l) POSTAL SERVICE FUND.—Notwithstanding any
other provision of law, any sequestration of the Postal
Service Fund shall be accomplished by a payment from
that Fund to the General Fund of the Treasury, and the
Postmaster General of the United States shall make the
full amount of that payment during the fiscal year to
which the presidential sequestration order applies.
(m) EFFECTS OF SEQUESTRATION.—The effects of
sequestration shall be as follows:
(1) Budgetary resources sequestered from any
account other than an entitlement trust, special, or
revolving fund account shall revert to the Treasury
and be permanently canceled.
(2) Except as otherwise provided, the same per-
centage sequestration shall apply to all programs,
projects, and activities within a budget account (with
programs, projects, and activities as delineated in
the appropriation Act or accompanying report for
the relevant fiscal year covering that account, or for
accounts not included in appropriation Acts, as de-
lineated in the most recently submitted President’s
budget).
(3) Administrative regulations or similar ac-
tions implementing a sequestration shall be made
within 120 days of the sequestration order. To the
extent that formula allocations differ at different
levels of budgetary resources within an account, pro-
gram, project, or activity, the sequestration shall be
interpreted as producing a lower total appropriation,
with that lower appropriation being obligated as
though it had been the pre-sequestration appropria-
tion and no sequestration had occurred.
(4) Except as otherwise provided, obligations in
sequestered direct spending accounts shall be re-
duced in the fiscal year in which a sequestration oc-
curs and in all succeeding fiscal years.
(5) If an automatic spending increase is seques-
tered, the increase (in the applicable index) that was
disregarded as a result of that sequestration shall
not be taken into account in any subsequent fiscal
year.
(6) Except as otherwise provided, sequestration
in accounts for which obligations are indefinite shall
be taken in a manner to ensure that obligations in
the fiscal year of a sequestration and succeeding fis-
cal years are reduced, from the level that would ac-
tually have occurred, by the applicable sequestration
percentage.
SEC. 304. POINT OF ORDER.
(a) IN GENERAL.—It shall not be in order in the
House of Representatives or the Senate to consider any
bill, joint resolution, amendment, or conference report that
includes any provision that has the effect of modifying the
application of this title to any entitlement program subject
to sequestration or exempt from sequestration under this
title.
(b) WAIVER OR SUSPENSION.—This section may be
waived or suspended in the House of Representatives or
the Senate only by the affirmative vote of three-fifths of
the Members, duly chosen and sworn.
TITLE IV—BALANCED BUDGET
BY FISCAL YEAR 2000
SEC. 401. REDUCTION OF MAXIMUM DEFICIT AMOUNT TO
ZERO.
(a) IN GENERAL.—Section 601(a)(1) of the Congres-
sional Budget Act of 1974 is amended to read as follows:
‘‘(1) MAXIMUM
DEFICIT
AMOUNT.—The term
‘maximum deficit amount’ means—
‘‘(A) with respect to fiscal year 1994,
$255,000,000,000;
‘‘(B) with respect to fiscal year 1995,
$219,000,000,000;
‘‘(C) with respect to fiscal year 1996,
$183,000,000,000;
‘‘(D) with respect to fiscal year 1997,
$147,000,000,000;
‘‘(E) with respect to fiscal year 1998,
$98,000,000,000;
‘‘(F) with respect to fiscal year 1999,
$49,000,000,000; and
‘‘(G) with respect to fiscal year 2000 and
fiscal years thereafter, zero.’’.
(b) RESTORATION
OF FIXED MAXIMUM DEFICIT
AMOUNTS.—Section 253(g) of the Balanced Budget and
Emergency Deficit Control Act is amended by striking
paragraph (1)(B).
SEC. 402. MAXIMUM DEFICIT AMOUNT POINT OF ORDER.
(a) MDA POINT OF ORDER.—Section 605(b) of the
Congressional Budget Act of 1974 is amended to read as
follows:
‘‘(b) MAXIMUM DEFICIT POINT OF ORDER.—
‘‘(1) IN GENERAL.—It shall not be in order in
the House of Representatives or the Senate to con-
sider any bill, joint resolution, amendment, or con-
ference report that includes any provision that would
result in a deficit for a fiscal year that exceeds the
maximum deficit amount for such fiscal year.
‘‘(2) WAIVER OR SUSPENSION.—This subsection
may be waived or suspended in the House of Rep-
resentatives or the Senate only by the affirmative
vote of three-fifths of the Members, duly chosen and
sworn.’’.
(b) LIMIT ON PUBLIC DEBT.—Section 605 of the
Congressional Budget Act of 1974 is amended by adding
at the end thereof the following:
‘‘(c) LIMIT ON PUBLIC DEBT.—
‘‘(1) IN GENERAL.—It shall not be in order in
the House of Representatives or the Senate to con-
sider any bill, joint resolution, amendment, or con-
ference report that includes any provision that in-
creases the national debt held by the public estab-
lished in the joint resolution on the budget for a fis-
cal year in excess of the limit on public debt estab-
lished by the joint resolution for such fiscal year.
‘‘(2) WAIVER OR SUSPENSION.—This subsection
may be waived or suspended in the House of Rep-
resentatives or the Senate only by the affirmative
vote of three-fifths of the Members, duly chosen and
sworn.’’.
(c) SOCIAL SECURITY.—
(1) 
EXCLUSION
FROM
BUDGET.—Section
13301(a) of the Budget Enforcement Act of 1990 is
amended by adding at the end thereof the following:
‘‘This subsection shall apply to fiscal years begin-
ning with fiscal year 2001.’’.
(2) EXCLUSION FROM CONGRESSIONAL BUDG-
ET.—The last sentence of section 301(a) of the Con-
gressional Budget Act of 1974 is amended by strik-
ing ‘‘The’’ and inserting ‘‘Effective with respect to
fiscal years beginning with fiscal year 2001, the’’.
(3) SOCIAL SECURITY ACT.—Section 710(a) of
the Social Security Act is amended by adding at the
end thereof the following: ‘‘This subsection shall
apply to fiscal years beginning with fiscal year
2001.’’.
SEC. 403. SOCIAL SECURITY FIREWALL.
(a) POINT OF ORDER.—Section 301(i) of the Con-
gressional Budget Act of 1974 is amended to read as
follows:
‘‘(i) SOCIAL SECURITY POINT OF ORDER.—It shall
not be in order in the Senate or the House of Representa-
tives to consider any joint resolution on the budget that
would decrease the excess of social security revenues over
social security outlays in any of the fiscal years covered
by the joint resolution. No change in chapter 1 of the In-
ternal Revenue Code of 1986 shall be treated as affecting
the amount of social security revenues unless such provi-
sion changes the income tax treatment of social security
benefits.’’.
(b) BALANCING
THE UNIFIED BUDGET.—Section
601(a)(1) of the Congressional Budget Act of 1974, as
amended by section 401(a) of this Act, is amended by add-
ing at the end thereof the following:
‘‘For fiscal years after fiscal year 1999, the maxi-
mum deficit amount shall be set at zero for each fis-
cal year in the joint resolution on the budget.’’.
(c) ELIMINATION OF SOCIAL SECURITY DEFICIT.—
Not later than October 1, 2000, Congress may adopt
budget procedures for the elimination of the non-Social
Security deficit by not later than September 30, 2005. The
non-Social Security deficit shall be defined as the Federal
budget deficit excluding the receipts and outlays of the
Social Security Trust Fund.
SEC. 404. LOOK-BACK SEQUESTER.
Section 253 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by adding at the
end thereof the following new subsection:
‘‘(i) LOOK-BACK SEQUESTER.—
‘‘(1) IN GENERAL.—On July 1 of each fiscal
year, the Director of OMB shall determine if laws
effective during the current fiscal year will cause the
deficit to exceed the maximum deficit amount for
such fiscal year. If the limit is exceeded, there shall
be a preliminary sequester on July 1 to eliminate the
excess.
‘‘(2) PERMANENT
SEQUESTER.—Budget au-
thority sequestered on July 1 pursuant to paragraph
(1) shall be permanently canceled on July 15.
‘‘(3) NO MARGIN.—The margin for determining
a sequester under this subsection shall be zero.
‘‘(4) SEQUESTRATION PROCEDURES.—The pro-
vision of subsections (c), (d), and (e) of this section
shall apply to a sequester under this subsection.’’.
SEC. 405. SAVINGS PROVISION.
The amendments made by this title, the limits estab-
lished by this title, and the procedures provided in Acts
amended by this title necessary to enforce such limits shall
apply with respect to fiscal years beginning with fiscal
year 1993 and shall continue notwithstanding the termi-
nation of any Act setting forth such procedures.
Æ
HR 883 IH——2
HR 883 IH——3