220
‘‘FIXED-YEAR AUTHORIZATIONS REQUIRED FOR
DIRECT SPENDING’’.
(b) CONFORMING AMENDMENT.—The item
relating to section 401 in the table of contents
set forth in section 1(b) of the Congressional
Budget and Impoundment Control Act of 1974
is amended to read as follows:
‘‘Sec. 401. Fixed-year authorizations required for direct spend-
ing.’’.
(c) LIMITATION ON AUTHORIZATION OF DIS-
CRETIONARY APPROPRIATIONS.—Rule XXI of the
Rules of the House of Representatives is
amended by adding at the end the following
new clause:
‘‘6. It shall not be in order to consider any
bill, joint resolution, amendment, or con-
ference report that authorizes the appropria-
tion of new budget authority (as defined in
section 3(2)(C) of the Congressional Budget
and Impoundment Control Act of 1974) for a
new program, unless such authorization is
specifically provided for a period of 10 or
fewer fiscal years.’’.
221
SEC. 412. AMENDMENTS TO SUBJECT NEW DIRECT SPEND-
ING TO ANNUAL APPROPRIATIONS.
(a) HOUSE PROCEDURES.—Clause 5 of rule
XVIII of the Rules of the House of Representa-
tives is amended by adding at the end the fol-
lowing new paragraph:
‘‘(c)(1) In the Committee of the Whole, an
amendment only to subject a new program
which provides direct spending to discre-
tionary appropriations, if offered by the
chairman of the Committee on the Budget (or
his designee) or the chairman of the Com-
mittee of Appropriations (or his designee),
may be precluded from consideration only by
the specific terms of a special order of the
House. Any such amendment, if offered, shall
be debatable for twenty minutes equally di-
vided and controlled by the proponent of the
amendment and a Member opposed and shall
not be subject to amendment.
‘‘(2) As used in subparagraph (1), the term
‘direct spending’ has the meaning given such
term in section 3(11) of the Congressional
Budget and Impoundment Control Act of
1974.’’.
222
(b) ADJUSTMENT OF DISCRETIONARY SPEND-
ING
LIMITS
FOR
DISCRETIONARY
APPROPRIA-
TIONS OFFSET BY DIRECT SPENDING SAVINGS.—
(1) PURPOSE.—The purpose of the
amendments made by this subsection is
to hold the discretionary spending limits
and the allocations made to the Com-
mittee on Appropriations under section
302(a) of the Congressional Budget Act of
1974 harmless for legislation that offsets
a new discretionary program with a des-
ignated reduction in direct spending.
(2) DESIGNATING DIRECT SPENDING SAV-
INGS
IN
AUTHORIZATION
LEGISLATION
FOR
NEW
DISCRETIONARY
PROGRAMS.—Section
252 of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (as
amended 
by 
section 
202) 
is 
further
amended by adding at the end the fol-
lowing new subsection:
‘‘(e) OFFSETS.—If a provision of direct
spending legislation is enacted that—
‘‘(1) decreases direct spending for any
fiscal year; and
223
‘‘(2) is designated as an offset pursu-
ant to this subsection and such designa-
tion specifically identifies an authoriza-
tion of discretionary appropriations (con-
tained in such legislation) for a new pro-
gram,
then the reductions in new budget authority
and outlays in all fiscal years resulting from
that provision shall be designated as an offset
in the reports required under subsection (d).’’.
(3) EXEMPTING
SUCH
DESIGNATED
DI-
RECT
SPENDING
SAVINGS
FROM
PAYGO
SCORECARD.—Section 252(d)(4) of the Bal-
anced Budget and Emergency Deficit
Control Act of 1985 (as amended by sec-
tion 202(b)) is further amended by adding
at the end the following new subpara-
graph:
‘‘(B) 
offset 
provisions 
as 
des-
ignated under subsection (e).’’.
(4) 
ADJUSTMENT
IN
DISCRETIONARY
SPENDING LIMITS.—Section 251(b)(2) of the
Balanced Budget and Emergency Deficit
Control Act of 1985 (as amended by sec-
tion 202(a)(2)) is further amended by add-
224
ing at the end the following new subpara-
graph:
‘‘(G) 
DISCRETIONARY
AUTHORIZA-
TION OFFSETS.—If an Act other than an
appropriation Act includes any provi-
sion reducing direct spending and
specifically identifies any such provi-
sion as an offset pursuant to section
252(e), the adjustments shall be an in-
crease in the discretionary spending
limits for budget authority and out-
lays in each fiscal year equal to the
amount of the budget authority and
outlay 
reductions, 
respectively,
achieved by the specified offset in
that fiscal year, except that the ad-
justments for the budget year in
which the offsetting provision takes
effect shall not exceed the amount of
discretionary new budget authority
provided for the new program (au-
thorized in that Act) in an Act mak-
ing discretionary appropriations and
the outlays flowing therefrom.’’.
225
(5) 
ADJUSTMENT
IN
APPROPRIATION
COMMITTEE’S ALLOCATIONS.—Section 314(b)
of the Congressional Budget Act of 1974
(as amended by section 202(d)) is further
amended by striking ‘‘; or’’ at the end of
paragraph (4), by striking the period and
inserting ‘‘; or’’ at the end of paragraph
(5), and by adding at the end the fol-
lowing new paragraph:
‘‘(6) the amount provided in an Act
making discretionary appropriations for
the program for which an offset was des-
ignated pursuant to section 252(e) of the
Balanced Budget and Emergency Deficit
Control Act of 1985 and any outlays flow-
ing therefrom, but not to exceed the
amount of the designated decrease in di-
rect spending for that year for that pro-
gram in a prior law.’’.
(6) ADJUSTMENT IN AUTHORIZING COM-
MITTEE’S ALLOCATIONS.—Section 314 of the
Congressional Budget Act of 1974 is
amended by adding at the end the fol-
lowing new subsection:
226
‘‘(f) ADJUSTMENT IN AUTHORIZING COMMIT-
TEE’S
ALLOCATIONS
BY
AMOUNT
OF
DIRECT
SPENDING OFFSET.—After the reporting of a
bill or joint resolution (by a committee other
than the Committee on Appropriations), or
the offering of an amendment thereto or the
submission of a conference report thereon,
that contains a provision that decreases di-
rect spending for any fiscal year and that is
designated as an offset pursuant to section
252(e) of the Balanced Budget and Emergency
Deficit Control Act of 1985, the chairman of
the Committee on the Budget shall reduce the
allocations of new budget authority and out-
lays made to such committee under section
302(a)(1) by the amount so designated.’’.
Subtitle 
B—Enhanced 
Congres-
sional 
Oversight 
Responsibil-
ities
SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIRE-
MENT OF PERMANENT BUDGET AUTHORITY.
(a) TIMETABLE FOR REVIEW.—Clause 2(d)(1)
of rule X of the Rules of the House of Rep-
resentatives is amended by striking subdivi-
227
sions (B) and (C) and inserting the following
new subdivision:
‘‘(B) provide in its plans a specific
timetable for its review of those laws,
programs, or agencies within its jurisdic-
tion, including those that operate under
permanent budget authority or perma-
nent statutory authority and such time-
table shall demonstrate that each law,
program, or agency within the commit-
tee’s jurisdiction will be reauthorized at
least once every ten years.’’.
(b) REVIEW
OF PERMANENT BUDGET AU-
THORITY
BY
THE COMMITTEE
ON APPROPRIA-
TIONS.—Clause 4(a) of rule X of the Rules of
the House of Representatives is amended—
(1) by striking subparagraph (2); and
(2) by redesignating subparagraphs
(3) and (4) as subparagraphs (2) and (3)
and by striking ‘‘from time to time’’ and
inserting ‘‘at least once each Congress’’ in
subparagraph (2) (as redesignated).
(c) 
CONFORMING
AMENDMENT.—Clause
4(e)(2) of rule X of the Rules of the House of
Representatives is amended by striking ‘‘from
228
time to time’’ and inserting ‘‘at least once
every ten years’’.
SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.
(a) SECTION
302 ALLOCATIONS.—Section
302(a) of the Congressional Budget Act of 1974
(as amended by section 104(a)) is further
amended by adding at the end the following
new paragraph:
‘‘(5) JUSTIFICATION OF CERTAIN SPEND-
ING ALLOCATIONS.—The joint explanatory
statement accompanying a conference re-
port on a joint resolution on the budget
that includes any allocation to a com-
mittee (other than the Committee on Ap-
propriations) of levels in excess of cur-
rent law levels shall set forth a justifica-
tion for not subjecting any program,
project, or activity (for which the alloca-
tion is made) to annual discretionary ap-
propriation.’’.
(b) PRESIDENTS’ BUDGET
SUBMISSIONS.—
Section 1105(a) of title 31, United States Code,
is amended by adding at the end the following
new paragraph:
229
‘‘(33) a justification for not subjecting
each new program, project, or activity to
discretionary appropriations.’’.
(c) COMMITTEE JUSTIFICATION FOR DIRECT
SPENDING.—Clause 4(e)(2) of rule X of the
Rules of the House of Representatives is
amended by inserting before the period the
following: ‘‘, and will provide specific informa-
tion in any report accompanying such bills
and joint resolutions to the greatest extent
practicable to justify why the programs,
projects, and activities involved would not be
subject to annual appropriation’’.
SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COM-
MITTEES.
Clause 1(d) of rule XI of the Rules of the
House of Representatives is amended by re-
designating paragraph (4) as paragraph (5)
and by inserting after paragraph (3) the fol-
lowing new paragraph:
‘‘(4) Such report shall include a summary
of and justifications for all bills and joint res-
olutions reported by such committee that—
‘‘(A) were considered before the adop-
tion of the appropriate budget resolution
230
and did not fall within an exception set
forth in section 303(b) of the Congres-
sional Budget Act of 1974;
‘‘(B) exceeded its allocation under
section 302(a) of such Act or breached an
aggregate level in violation of section 311
of such Act; or
‘‘(C) contained provisions in violation
of section 401(a) of such Act pertaining to
indefinite direct spending authority.
Such report shall also specify the total
amount by which legislation reported by that
committee exceeded its allocation under sec-
tion 302(a) or breached the revenue floor
under section 311(a) of such Act for each fis-
cal year during that Congress.’’.
SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET
PROCESS REFORMS.
Section 703 of the Congressional Budget
Act of 1974 is amended as follows:
(1) In subsection (a), strike ‘‘and’’ at
the end of paragraph (3), strike the pe-
riod at the end of paragraph (4) and in-
sert ‘‘; and’’, and at the end add the fol-
lowing new paragraph:
231
‘‘(5) evaluating whether existing pro-
grams, projects, and activities should be
subject to discretionary appropriations
and establishing guidelines for subjecting
new or expanded programs, projects, and
activities to annual appropriation and
recommend any necessary changes in
statutory enforcement mechanisms and
scoring conventions to effectuate such
changes.’’.
(2) In subsection (b), strike ‘‘from
time to time’’ and insert ‘‘during the One
Hundred Sixth Congress’’.
SEC. 425. GAO REPORTS.
The last sentence of section 404 of the
Congressional Budget Act of 1974 is amended
to read as follows: ‘‘Such report shall be re-
vised at least once every five years and shall
be transmitted to the chairman and ranking
minority member of each committee of the
House of Representatives and the Senate.’’.
232
Subtitle C—Strengthened
Accountability
SEC. 431. TEN-YEAR CBO ESTIMATES.
(a) CBO REPORTS
ON LEGISLATION.—Sec-
tion 308(a)(1)(B) of the Congressional Budget
Act of 1974 is amended by striking ‘‘four’’ and
inserting ‘‘nine’’.
(b) ANALYSIS
BY CBO.—Section 402(1) of
the Congressional Budget Act of 1974 is
amended by striking ‘‘4’’ and inserting ‘‘nine’’.
(c) COST ESTIMATES.—Clause 3(d)(2)(A) of
rule XIII of the Rules of the House of Rep-
resentatives is amended by striking ‘‘five’’
each place it appears and inserting ‘‘10’’.
SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE
HOUSE OF REPRESENTATIVES.
Rule XXIII of the Rules of the House of
Representatives (relating to the establish-
ment of the statutory limit on the public debt)
is repealed.
233
TITLE V—BUDGETING FOR UN-
FUNDED 
LIABILITIES 
AND
OTHER LONG-TERM OBLIGA-
TIONS
SEC. 501. PURPOSES.
The purposes of this title are to—
(1) budget for the long-term costs of
Federal insurance programs;
(2) improve congressional control of
those costs; and
(3) periodically report on long-term
budgetary trends.
Subtitle A—Budgetary Treatment
of Federal Insurance Programs
SEC. 511. FEDERAL INSURANCE PROGRAMS.
(a) IN GENERAL.—The Congressional Budg-
et Act of 1974 is amended by adding after title
V the following new title:
‘‘TITLE VI—BUDGETARY TREAT-
MENT OF FEDERAL INSUR-
ANCE PROGRAMS
‘‘SEC. 601. SHORT TITLE.
‘‘This title may be cited as the ‘Federal In-
surance Budgeting Act of 1999’.
234
‘‘SEC. 602. BUDGETARY TREATMENT.
‘‘(a) PRESIDENT’S BUDGET.—Beginning with
fiscal year 2006, the budget of the Govern-
ment pursuant to section 1105(a) of title 31,
United States Code, shall be based on the risk-
assumed cost of Federal insurance programs.
‘‘(b) BUDGET ACCOUNTING.—For any Fed-
eral insurance program—
‘‘(1) the program account shall—
‘‘(A) pay the risk-assumed cost
borne by the taxpayer to the financ-
ing account, and
‘‘(B) pay actual insurance pro-
gram administrative costs;
‘‘(2) the financing account shall—
‘‘(A) receive premiums and other
income,
‘‘(B) pay all claims for insurance
and receive all recoveries,
‘‘(C) transfer to the program ac-
count on not less than an annual
basis amounts necessary to pay insur-
ance program administrative costs;
‘‘(3) a negative risk-assumed cost
shall be transferred from the financing
account to the program account, and
235
shall be transferred from the program ac-
count to the general fund; and
‘‘(4) all payments by or receipts of the
financing accounts shall be treated in the
budget as a means of financing.
‘‘(c) APPROPRIATIONS REQUIRED.—(1) Not-
withstanding any other provision of law, in-
surance commitments may be made for fiscal
year 2006 and thereafter only to the extent
that new budget authority to cover their risk-
assumed cost is provided in advance in an ap-
propriation Act.
‘‘(2) An outstanding insurance commit-
ment shall not be modified in a manner that
increases its risk-assumed cost unless budget
authority for the additional cost has been pro-
vided in advance.
‘‘(3) Paragraph (1) shall not apply to Fed-
eral insurance programs that constitute enti-
tlements.
‘‘(d) REESTIMATES.—The risk-assumed cost
for a fiscal year shall be reestimated in each
subsequent year. Such reestimate can equal
zero. In the case of a positive reestimate, the
amount of the reestimate shall be paid from
236
the program account to the financing ac-
count. In the case of a negative reestimate,
the amount of the reestimate shall be paid
from the financing account to the program ac-
count, and shall be transferred from the pro-
gram account to the general fund. Reesti-
mates shall be displayed as a distinct and sep-
arately identified subaccount in the program
account.
‘‘(e) ADMINISTRATIVE EXPENSES.—All fund-
ing for an agency’s administration of a Fed-
eral insurance program shall be displayed as
a distinct and separately identified sub-
account in the program account.
‘‘SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL
BUDGETING FOR FEDERAL INSURANCE PRO-
GRAMS.
‘‘(a) 
AGENCY
REQUIREMENTS.—Agencies
with responsibility for Federal insurance pro-
grams shall develop models to estimate their
risk-assumed cost by year through the budget
horizon and shall submit those models, all rel-
evant data, a justification for critical assump-
tions, and the annual projected risk-assumed
costs to OMB with their budget requests each
237
year starting with the request for fiscal year
2002. Agencies will likewise provide OMB
with annual estimates of modifications, if any,
and reestimates of program costs.
‘‘(b) DISCLOSURE.—When the President
submits a budget of the Government pursuant
to section 1105(a) of title 31, United States
Code, for fiscal year 2002, OMB shall publish
a notice in the Federal Register advising in-
terested persons of the availability of infor-
mation describing the models, data (including
sources), and critical assumptions (including
explicit or implicit discount rate assump-
tions) that it or other executive branch enti-
ties would use to estimate the risk-assumed
cost of Federal insurance programs and giv-
ing such persons an opportunity to submit
comments. At the same time, the chairman of
the Committee on the Budget shall publish a
notice for CBO in the Federal Register advis-
ing interested persons of the availability of in-
formation describing the models, data (in-
cluding sources), and critical assumptions (in-
cluding explicit or implicit discount rate as-
sumptions) that it would use to estimate the
238
risk-assumed cost of Federal insurance pro-
grams and giving such interested persons an
opportunity to submit comments.
‘‘(c) REVISION.—(1) After consideration of
comments pursuant to subsection (b), and in
consultation with the Committees on the
Budget of the House of Representatives and
the Senate, OMB and CBO shall revise the
models, data, and major assumptions they
would use to estimate the risk-assumed cost
of Federal insurance programs.
‘‘(2) When the President submits a budget
of the Government pursuant to section
1105(a) of title 31, United States Code, for fis-
cal year 2003, OMB shall publish a notice in
the Federal Register advising interested per-
sons of the availability of information describ-
ing the models, data (including sources), and
critical assumptions (including explicit or im-
plicit discount rate assumptions) that it or
other executive branch entities used to esti-
mate the risk-assumed cost of Federal insur-
ance programs.
‘‘(d) DISPLAY.—
239
‘‘(1) IN
GENERAL.—For fiscal years
2003, 2004, and 2005 the budget submis-
sions of the President pursuant to section
1105(a) of title 31, United States Code,
and CBO’s reports on the economic and
budget 
outlook 
pursuant 
to 
section
202(e)(1) and the President’s budgets,
shall for display purposes only, estimate
the risk-assumed cost of existing or pro-
posed Federal insurance programs.
‘‘(2) OMB.—The display in the budget
submissions of the President for fiscal
years 2003, 2004, and 2005 shall include—
‘‘(A) a presentation for each Fed-
eral insurance program in budget-ac-
count level detail of estimates of risk-
assumed cost;
‘‘(B) a summary table of the risk-
assumed costs of Federal insurance
programs; and
‘‘(C) an alternate summary table
of budget functions and aggregates
using risk-assumed rather than cash-
based cost estimates for Federal in-
surance programs.
240
‘‘(3) CBO.—In the second session of
the 107th Congress and the 108th Con-
gress, CBO shall include in its estimates
under section 308, for display purposes
only, the risk-assumed cost of existing
Federal insurance programs, or legisla-
tion that CBO, in consultation with the
Committees on the Budget of the House
of Representatives and the Senate, deter-
mines would create a new Federal insur-
ance program.
‘‘(e) OMB, CBO, AND GAO EVALUATIONS.—
(1) Not later than 6 months after the budget
submission of the President pursuant to sec-
tion 1105(a) of title 31, United States Code, for
fiscal year 2005, OMB, CBO, and GAO shall
each submit to the Committees on the Budget
of the House of Representatives and the Sen-
ate a report that evaluates the advisability
and appropriate implementation of this title.
‘‘(2) Each report made pursuant to para-
graph (1) shall address the following:
‘‘(A) The adequacy of risk-assumed es-
timation models used and alternative
modeling methods.
241
‘‘(B) The availability and reliability of
data or information necessary to carry
out this title.
‘‘(C) The appropriateness of the ex-
plicit or implicit discount rate used in
the various risk-assumed estimation mod-
els.
‘‘(D) The advisability of specifying a
statutory discount rate (such as the
Treasury rate) for use in risk-assumed es-
timation models.
‘‘(E) The ability of OMB, CBO, or
GAO, as applicable, to secure any data or
information directly from any Federal
agency necessary to enable it to carry out
this title.
‘‘(F) The relationship between risk-as-
sumed accrual budgeting for Federal in-
surance programs and the specific re-
quirements of the Balanced Budget and
Emergency Deficit Control Act of 1985.
‘‘(G) Whether Federal budgeting is
improved by the inclusion of risk-as-
sumed cost estimates for Federal insur-
ance programs.
242
‘‘(H) The advisability of including
each of the programs currently estimated
on a risk-assumed cost basis in the Fed-
eral budget on that basis.
‘‘SEC. 604. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1) The term ‘Federal insurance pro-
gram’ means a program that makes insur-
ance commitments and includes the list
of such programs included in the joint ex-
planatory statement of managers accom-
panying the conference report on the
Comprehensive Budget Process Reform
Act of 1999.
‘‘(2) The term ‘insurance commitment’
means an agreement in advance by a
Federal agency to indemnify a nonfederal
entity against specified losses. This term
does not include loan guarantees as de-
fined in title V or benefit programs such
as social security, medicare, and similar
existing social insurance programs.
‘‘(3)(A) The term ‘risk-assumed cost’
means the net present value of the esti-
mated cash flows to and from the Govern-
243
ment resulting from an insurance com-
mitment or modification thereof.
‘‘(B) The cash flows associated with
an insurance commitment include—
‘‘(i) expected claims payments in-
herent in the Government’s commit-
ment;
‘‘(ii) net premiums (expected pre-
mium collections received from or on
behalf of the insured less expected
administrative expenses);
‘‘(iii) expected recoveries; and
‘‘(iv) expected changes in claims,
premiums, or recoveries resulting
from the exercise by the insured of
any option included in the insurance
commitment.
‘‘(C) The cost of a modification is the
difference between the current estimate
of the net present value of the remaining
cash flows under the terms of the insur-
ance commitment, and the current esti-
mate of the net present value of the re-
maining cash flows under the terms of
the insurance commitment as modified.
244
‘‘(D) The cost of a reestimate is the
difference between the net present value
of the amount currently required by the
financing 
account 
to 
pay 
estimated
claims and other expenditures and the
amount currently available in the financ-
ing account. The cost of a reestimate
shall be accounted for in the current year
in the budget of the Government pursu-
ant to section 1105(a) of title 31, United
States Code.
‘‘(E) For purposes of this definition,
expected administrative expenses shall
be construed as the amount estimated to
be necessary for the proper administra-
tion of the insurance program. This
amount may differ from amounts actually
appropriated or otherwise made avail-
able for the administration of the pro-
gram.
‘‘(4) 
The 
term 
‘program 
account’
means the budget account for the risk-as-
sumed cost, and for paying all costs of ad-
ministering the insurance program, and
is the account from which the risk-as-
245
sumed cost is disbursed to the financing
account.
‘‘(5) The term ‘financing account’
means the nonbudget account that is as-
sociated with each program account
which receives payments from or makes
payments to the program account, re-
ceives premiums and other payments
from the public, pays insurance claims,
and holds balances.
‘‘(6) The term ‘modification’ means
any Government action that alters the
risk-assumed cost of an existing insur-
ance commitment from the current esti-
mate of cash flows. This includes any ac-
tion resulting from new legislation, or
from the exercise of administrative dis-
cretion under existing law, that directly
or indirectly alters the estimated cost of
existing insurance commitments.
‘‘(7) The term ‘model’ means any actu-
arial, 
financial, 
econometric, 
prob-
abilistic, or other methodology used to es-
timate the expected frequency and mag-
nitude of loss-producing events, expected
246
premiums or collections from or on be-
half of the insured, expected recoveries,
and administrative expenses.
‘‘(8) The term ‘current’ has the same
meaning as in section 250(c)(9) of the Bal-
anced Budget and Emergency Deficit
Control Act of 1985.
‘‘(9) The term ‘OMB’ means the Direc-
tor of the Office of Management and
Budget.
‘‘(10) The term ‘CBO’ means the Direc-
tor of the Congressional Budget Office.
‘‘(11) The term ‘GAO’ means the
Comptroller General of the United States.
‘‘SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS;
ACTUARIAL COST ACCOUNT.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
There is authorized to be appropriated
$600,000 for each of fiscal years 2000 through
2005 to the Director of the Office of Manage-
ment and Budget and each agency respon-
sible for administering a Federal program to
carry out this title.
‘‘(b) TREASURY TRANSACTIONS WITH THE FI-
NANCING
ACCOUNTS.—The Secretary of the
247
Treasury shall borrow from, receive from,
lend to, or pay the insurance financing ac-
counts such amounts as may be appropriate.
The Secretary of the Treasury may prescribe
forms and denominations, maturities, and
terms and conditions for the transactions de-
scribed above. The authorities described
above shall not be construed to supersede or
override the authority of the head of a Fed-
eral agency to administer and operate an in-
surance program. All the transactions pro-
vided in this subsection shall be subject to the
provisions of subchapter II of chapter 15 of
title 31, United States Code. Cash balances of
the financing accounts in excess of current re-
quirements shall be maintained in a form of
uninvested funds, and the Secretary of the
Treasury shall pay interest on these funds.
‘‘(c) APPROPRIATION OF AMOUNT NECESSARY
TO COVER RISK-ASSUMED COST OF INSURANCE
COMMITMENTS AT TRANSITION DATE.—(1) A fi-
nancing account is established on September
30, 2005, for each Federal insurance program.
‘‘(2) There is appropriated to each financ-
ing account the amount of the risk-assumed
248
cost of Federal insurance commitments out-
standing for that program as of the close of
September 30, 2005.
‘‘(3) These financing accounts shall be
used in implementing the budget accounting
required by this title.
‘‘SEC. 606. EFFECTIVE DATE.
‘‘(a) IN GENERAL.—This title shall take ef-
fect immediately and shall expire on Sep-
tember 30, 2007.
‘‘(b) SPECIAL RULE.—If this title is not re-
authorized by September 30, 2007, then the
accounting structure and budgetary treat-
ment of Federal insurance programs shall re-
vert to the accounting structure and budg-
etary treatment in effect immediately before
the date of enactment of this title.’’.
(b) CONFORMING AMENDMENT.—The table of
contents set forth in section 1(b) of the Con-
gressional Budget and Impoundment Control
Act of 1974 is amended by inserting after the
item relating to section 507 the following new
items:
‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL
INSURANCE PROGRAMS
‘‘Sec. 601. Short title.
‘‘Sec. 602. Budgetary treatment.
249
‘‘Sec. 603. Timetable for implementation of accrual budgeting
for Federal insurance programs.
‘‘Sec. 604. Definitions.
‘‘Sec. 605. Authorizations to enter into contracts; actuarial cost
account.
‘‘Sec. 606. Effective date.’’.
Subtitle B—Reports on Long-Term
Budgetary Trends
SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.
(a) 
THE
PRESIDENT’S
BUDGET.—Section
1105(a) of title 31, United States Code (as
amended by section 404), is further amended
by adding at the end the following new para-
graph:
‘‘(34) an analysis based upon current
law and an analysis based upon the pol-
icy assumptions underlying the budget
submission for every fifth year of the pe-
riod of 75 fiscal years beginning with
such fiscal year, of the estimated levels of
total new budget authority and total
budget outlays, estimated revenues, esti-
mated surpluses and deficits, and, for so-
cial security, medicare, medicaid, and all
other direct spending, estimated levels of
total new budget authority and total
budget outlays; and a specification of its
underlying assumptions and a sensitivity
250
analysis of factors that have a significant
effect on the projections made in each
analysis; and a comparison of the effects
of each of the two analyses on the econ-
omy, including such factors as inflation,
foreign investment, interest rates, and
economic growth.’’.
(b) CBO REPORTS.—Section 202(e)(1) of the
Congressional Budget Act of 1974 is amended
by adding at the end the following new sen-
tences: ‘‘Such report shall also include an
analysis based upon current law for every
fifth year of the period of 75 fiscal years be-
ginning with such fiscal year, of the estimated
levels of total new budget authority and total
budget outlays, estimated revenues, estimated
surpluses and deficits, and, for social security,
medicare, medicaid, and all other direct
spending, estimated levels of total new budget
authority and total budget outlays. The report
described in the preceding sentence shall also
specify its underlying assumptions and set
forth a sensitivity analysis of factors that
have a significant effect on the projections
made in the report.’’.
251
TITLE VI—BASELINES, BYRD
RULE, AND LOCK-BOX
SEC. 601. PURPOSE.
The purposes of this title are to—
(1) require budgetary comparisons to
prior year levels;
(2) restrict the application of the
Byrd rule to measures other than con-
ference reports; and
(3) establish a procedure to allow sav-
ings from spending cuts in appropriation
measures to be locked-in to increase the
surplus or reduce the deficit.
Subtitle A—The Baseline
SEC. 611. THE PRESIDENT’S BUDGET.
(a) Paragraph (5) of section 1105(a) of title
31, United States Code, is amended to read as
follows:
‘‘(5) except as provided in subsection
(b) of this section, estimated expendi-
tures and appropriations for the current
year and estimated expenditures and pro-
posed appropriations the President de-
cides are necessary to support the Gov-
ernment in the fiscal year for which the
252
budget is submitted and the 4 fiscal years
following that year, and, except for de-
tailed budget estimates, the percentage
change from the current year to the fiscal
year for which the budget is submitted
for estimated expenditures and for ap-
propriations.’’.
(b) Section 1105(a)(6) of title 31, United
States Code, is amended to read as follows:
‘‘(6) estimated receipts of the Govern-
ment in the current year and the fiscal
year for which the budget is submitted
and the 4 fiscal years after that year
under—
‘‘(A) laws in effect when the budg-
et is submitted; and
‘‘(B) proposals in the budget to in-
crease revenues,
and the percentage change (in the case of
each category referred to in subpara-
graphs (A) and (B)) between the current
year and the fiscal year for which the
budget is submitted and between the cur-
rent year and each of the 9 fiscal years
253
after the fiscal year for which the budget
is submitted.’’.
(c) Section 1105(a)(12) of title 31, United
States Code, is amended to read as follows:
‘‘(12) for each proposal in the budget
for legislation that would establish or ex-
pand a Government activity or function,
a table showing—
‘‘(A) the amount proposed in the
budget for appropriation and for ex-
penditure because of the proposal in
the fiscal year for which the budget is
submitted;
‘‘(B) the estimated appropriation
required because of the proposal for
each of the 4 fiscal years after that
year that the proposal will be in ef-
fect; and
‘‘(C) the estimated amount for the
same activity or function, if any, in
the current fiscal year,
and, except for detailed budget estimates,
the percentage change (in the case of
each category referred to in subpara-
graphs (A), (B), and (C)) between the cur-
254
rent year and the fiscal year for which
the budget is submitted.’’.
(d) Section 1105(a)(18) of title 31, United
States Code, is amended by inserting ‘‘new
budget authority and’’ before ‘‘budget out-
lays’’.
(e) Section 1105(a) of title 31, United
States Code, (as amended by sections 412(b)
and 521(a)) is further amended by adding at
the end the following new paragraphs:
‘‘(35) a comparison of levels of esti-
mated expenditures and proposed appro-
priations for each function and subfunc-
tion in the current fiscal year and the fis-
cal year for which the budget is sub-
mitted, along with the proposed increase
or decrease of spending in percentage
terms for each function and subfunction.
‘‘(36) a table on sources of growth in
total direct spending under current law
and as proposed in this budget submis-
sion for the budget year and the ensuing
fiscal 
years, 
which 
shall 
include
changes in outlays attributable to the fol-
lowing: 
cost-of-living 
adjustments;
255
changes in the number of program recipi-
ents; increases in medical care prices,
utilization and intensity of medical care;
and residual factors.’’.
(f) Section 1109(a) of title 31, United States
Code, is amended by inserting after the first
sentence the following new sentence: ‘‘For dis-
cretionary spending, these estimates shall as-
sume the levels set forth in the discretionary
spending limits under section 251(c) of the
Balanced Budget and Emergency Deficit Con-
trol Act of 1985, as adjusted, for the appro-
priate fiscal years (and if no such limits are
in effect, these estimates shall assume the ad-
justed levels for the most recent fiscal year
for which such levels were in effect).’’.
SEC. 612. THE CONGRESSIONAL BUDGET.
Section 301(e) of the Congressional Budg-
et Act of 1974 (as amended by section 103) is
further amended—
(1) in paragraph (1), by inserting at
the end the following: ‘‘The basis of delib-
erations in developing such joint resolu-
tion shall be the estimated budgetary lev-
els for the preceding fiscal year. Any
256
budgetary levels pending before the com-
mittee and the text of the joint resolution
shall be accompanied by a document
comparing such levels or such text to the
estimated levels of the prior fiscal year.
Any amendment offered in the committee
that changes a budgetary level and is
based upon a specific policy assumption
for a program, project, or activity shall
be accompanied by a document indi-
cating the estimated amount for such
program, project, or activity in the cur-
rent year.’’; and
(2) in paragraph (2), by striking ‘‘and’’
at the end of subparagraph (H) (as redes-
ignated), by striking the period and in-
serting ‘‘; and’’ at the end of subpara-
graph (I) (as redesignated), and by add-
ing at the end the following new subpara-
graph:
‘‘(J) a comparison of levels for the
current fiscal year with proposed
spending and revenue levels for the
subsequent fiscal years along with
the proposed increase or decrease of
257
spending in percentage terms for
each function.’’.
SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO
COMMITTEES.
(a) The first sentence of section 202(e)(1)
of the Congressional Budget Act of 1974 is
amended by inserting ‘‘compared to com-
parable levels for the current year’’ before the
comma at the end of subparagraph (A) and be-
fore the comma at the end of subparagraph
(B).
(b) Section 202(e)(1) of the Congressional
Budget Act of 1974 is amended by inserting
after the first sentence the following new sen-
tence: ‘‘Such report shall also include a table
on sources of spending growth in total direct
spending for the budget year and the ensuing
9 fiscal years, which shall include changes in
outlays attributable to the following: cost-of-
living adjustments; changes in the number of
program recipients; increases in medical care
prices, utilization and intensity of medical
care; and residual factors.’’.
(c) Section 308(a)(1)(B) of the Congres-
sional Budget Act of 1974 is amended by in-
258
serting ‘‘and shall include a comparison of
those levels to comparable levels for the cur-
rent fiscal year’’ before ‘‘if timely submitted’’.
SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY
SPENDING.
For purposes of chapter 11 of title 31 of
the United States Code, or the Congressional
Budget Act of 1974, unless otherwise ex-
pressly provided, in making budgetary projec-
tions for years for which there are no discre-
tionary spending limits, the Director of the
Office of Management and Budget and the Di-
rector of the Congressional Budget Office
shall assume discretionary spending levels at
the levels for the last fiscal year for which
such levels were in effect.
Subtitle B—The Byrd Rule
SEC. 621. LIMITATION ON BYRD RULE.
(a) 
PROTECTION
OF
CONFERENCE
RE-
PORTS.—Section 313 of the Congressional
Budget Act of 1974 is amended—
(1) in subsection (c), by striking ‘‘and
again upon the submission of a con-
ference report on such a reconciliation
bill or resolution,’’;
259
(2) by striking subsection (d);
(3) by redesignating subsection (e) as
subsection (d); and
(4) 
in 
subsection 
(e), 
as
redesignated—
(A) by striking ‘‘, motion, or con-
ference report’’ the first place it ap-
pears and inserting ‘‘, or motion’’; and
(B) by striking ‘‘, motion, or con-
ference report’’ the second and third
places it appears and inserting ‘‘or
motion’’.
(b) CONFORMING
AMENDMENT.—The first
sentence of section 312(e) of the Congres-
sional Budget Act of 1974 is amended by in-
serting ‘‘, except for section 313,’’ after ‘‘Act’’.
Subtitle C—Spending
Accountability Lock-box
SEC. 631. SHORT TITLE.
This subtitle may be cited as the ‘‘Spend-
ing Accountability Lock-box Act of 1999’’.
SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.
(a) ESTABLISHMENT OF LEDGER.—Title III of
the Congressional Budget Act of 1974 (as
amended by sections 104(c) and 206(a)) is fur-
261
state the portion of such reduction that shall
be—
‘‘(A) credited to the House or Senate
Lock-box Balance, as applicable; or
‘‘(B) used to offset an increase in new
budget authority in any other account;
‘‘(C) allowed to remain within the ap-
plicable 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 Lock-box Balance, as appli-
cable, if the amendment is agreed to.
‘‘(2)(A) Except as provided by subpara-
graph (B), the chairmen of the Committees on
the Budget shall, upon the engrossment of
any appropriation bill by the House of Rep-
resentatives and upon the engrossment of
Senate amendments to that bill, 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 authority and in outlays resulting
from amendments agreed to by that House to
that bill.
262
‘‘(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 portions of such amendments agreed to
that were so designated by the Members offer-
ing such amendments as amounts to be cred-
ited to the House or Senate Lock-box Balance,
as applicable, or that fall within the last sen-
tence 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
Lock-box Balance the amounts of new budget
authority 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 Lock-box Balance
plus (ii) the amount of new budget au-
thority in the Senate Lock-box Balance
for that subcommittee; and
263
‘‘(B) an amount equal to one-half of
the sum of (i) the amount of outlays in
the House Lock-box Balance plus (ii) the
amount of outlays in the Senate Lock-box
Balance for that subcommittee.
‘‘(4) CALCULATION OF LOCK-BOX SAVINGS IN
SENATE.—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 re-
ported to the Senate by its Committee on Ap-
propriations 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 gen-
eral or special appropriation bill, and any bill
or joint resolution making supplemental, defi-
ciency, or continuing appropriations through
the end of a fiscal year.
‘‘(e) 
TALLY
DURING
HOUSE
CONSIDER-
ATION.—The chairman of the Committee on
the Budget of the House of Representatives
shall maintain a running tally of the amend-
ments adopted reflecting increases and de-
264
creases of budget authority in the bill as re-
ported. This tally shall be available to Mem-
bers in the House of Representatives during
consideration of any appropriations bill by
the House.’’.
(b) CONFORMING AMENDMENT.—The table of
contents set forth in section 1(b) of the Con-
gressional Budget and Impoundment Control
Act of 1974 is amended by inserting after the
item relating to section 317 the following new
item:
‘‘Sec. 318. Spending accountability lock-box ledger.’’.
SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(a) AL-
LOCATIONS AND SECTION 302(b) SUBALLOCA-
TIONS.
(a) ALLOCATIONS.—Section 302(a) of the
Congressional Budget Act of 1974 (as amend-
ed by section 422) is further amended by add-
ing at the end the following new paragraph:
‘‘(6) ADJUSTMENT
OF
ALLOCATIONS.—
Upon the engrossment of Senate amend-
ments to any appropriation bill (as de-
fined in section 318(d)) for a fiscal year,
the amounts allocated under paragraph
(1) or (2) to the Committee on Appropria-
tions of each House upon the adoption of
265
the most recent joint resolution on the
budget for that fiscal year shall be ad-
justed downward by the amounts cred-
ited to the applicable Joint House-Senate
Lock-box Balance under section 318(c)(2).
The revised levels of new budget author-
ity 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
Congressional Budget Act of 1974 is amended
by adding at the end the following new sen-
tence: ‘‘Whenever an adjustment is made
under subsection (a)(7) to an allocation under
that subsection, the Committee on Appropria-
tions of each House shall make downward ad-
justments in the most recent suballocations of
new budget authority and outlays under this
subparagraph to the appropriate subcommit-
tees 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 Com-
mittee on Appropriations of that House and