101 
‘‘National Credit Union Administration op-
erating fund (25–4056–0–3–373); and 
‘‘Resolution Trust Corporation Revolving 
Fund (22–4055–0–3–373); 
‘‘(9) Thrift Savings Fund; 
‘‘(10) appropriations for the District of Colum-
bia 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 
Federal unemployment account (established by sec-
tion 904(g) of such Act) under title XII of such Act 
and any advance appropriated to the Federal unem-
ployment 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; and
102 
‘‘(12)(A) FDIC, Bank Insurance Fund (51– 
4064–0–3–373); 
‘‘(B) FDIC, FSLIC Resolution Fund (51– 
4065–0–3–373); and 
‘‘(C) FDIC, Savings Association Insurance 
Fund (51–4066–0–3–373). 
‘‘(c) FEDERAL RETIREMENT AND DISABILITY AC-
COUNTS.—The following Federal retirement and disability 
accounts shall be exempt from reduction under any order 
issued under this part: 
‘‘Civil service retirement and disability fund 
(24–8135–0–7–602). 
‘‘Black Lung Disability Trust Fund (20–8144– 
0–7–601). 
‘‘Foreign Service Retirement and Disability 
Fund (19–8186–0–7–602). 
‘‘District of Columbia Judicial Retirement and 
Survivors Annuity Fund (20–8212–0–7–602). 
‘‘Judicial Survivors’ Annuities Fund (10–8110– 
0–7–602). 
‘‘Payments to the Railroad Retirement Ac-
counts (60–0113–0–1–601). 
‘‘Tax Court Judges Survivors Annuity Fund 
(23–8115–0–7–602).
103 
‘‘Employees Life Insurance Fund (24–8424–0– 
8–602). 
‘‘(d) FEDERAL ADMINISTRATIVE EXPENSES.— 
‘‘(1) Notwithstanding any provision of law 
other than paragraph (3), administrative expenses 
incurred by the departments and agencies, including 
independent agencies, of the Government in connec-
tion with any program, project, activity, or account 
shall be subject to reduction pursuant to any seques-
tration order, without regard to any exemption, ex-
ception, limitation, or special rule otherwise applica-
ble with respect to such program, project, activity, 
or account, and regardless of whether the program, 
project, activity, or account is self-supporting and 
does not receive appropriations. 
‘‘(2) Payments made by the Government to re-
imburse or match administrative costs incurred by a 
State or political subdivision under or in connection 
with any program, project, activity, or account shall 
not be considered administrative expenses of the 
Government for purposes of this section, and shall 
be subject to sequestration to the extent (and only 
to the extent) that other payments made by the Gov-
ernment under or in connection with that program, 
project, activity, or account are subject to that re-
104 
duction or sequestration; except that Federal pay-
ments made to a State as reimbursement of admin-
istrative costs incurred by that State under or in 
connection with the unemployment compensation 
programs specified in subsection (a)(11) shall be 
subject to reduction or sequestration under this part 
notwithstanding the exemption otherwise granted to 
such programs under that subsection. 
‘‘(3) Notwithstanding any other provision of 
law, the administrative expenses of the following 
programs 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 Administra-
tion. 
‘‘(E) National Credit Union Administra-
tion, central liquidity facility. 
‘‘(F) Federal Retirement Thrift Invest-
ment Board. 
‘‘(G) Resolution Funding Corporation. 
‘‘(H) Resolution Trust Corporation. 
‘‘(I) Board of Governors of the Federal 
Reserve System.
105 
‘‘(e) VETERANS’ PROGRAMS.—The following pro-
grams shall be exempt from reduction under any order 
issued under this part: 
‘‘General Post Funds (36–8180–0–7–705). 
‘‘Veterans Insurance and Indemnities (36– 
0120–0–1–701). 
‘‘Service-Disabled Veterans Insurance Funds 
(36–4012–0–3–701). 
‘‘Veterans Reopened Insurance Fund (36– 
4010–0–3–701). 
‘‘Servicemembers’ Group Life Insurance Fund 
(36–4009–0–3–701). 
‘‘Post-Vietnam Era Veterans Education Ac-
count (36–8133–0–7–702). 
‘‘National Service Life Insurance Fund (36– 
8132–0–7–701). 
‘‘United States Government Life Insurance 
Fund (36–8150–0–7–701). 
‘‘Veterans Special Life Insurance Fund (36– 
8455–0–8–701). 
‘‘(f) OPTIONAL
EXEMPTION
OF
DEFENSE
AND 
HOMELAND SECURITY ACCOUNTS.— 
‘‘(1) IN GENERAL.—The President may, with 
respect to any defense or homeland security account, 
exempt that account from sequestration or provide