I 
111TH CONGRESS 
2D SESSION 
H. R. 4481 
To reduce the Federal budget deficit in a responsible manner. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 20, 2010 
Mr. LANCE introduced the following bill; which was referred to the Committee 
on the Budget, and in addition to the Committee on Rules, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To reduce the Federal budget deficit in a responsible 
manner. 
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 as the 
‘‘Deficit Reduction Act of 2009’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
TITLE I—DISCRETIONARY SPENDING LIMITS 
Sec. 101. Discretionary spending limits. 
Sec. 102. Sequestration for discretionary limits. 
Sec. 103. Adjustments to discretionary spending limits. 
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Sec. 104. Low-growth report. 
Sec. 105. Conforming amendments. 
TITLE II—DEFICIT LIMITS 
Sec. 201. Deficit limits. 
Sec. 202. Effective date. 
TITLE III—GENERAL PROVISIONS 
Sec. 301. Exempt programs and activities. 
Sec. 302. Enforcement procedures under the Congressional Budget Act. 
Sec. 303. Definitions. 
TITLE I—DISCRETIONARY 
SPENDING LIMITS 
SEC. 101. DISCRETIONARY SPENDING LIMITS. 
Section 251(c) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended by striking 
beginning with ‘‘means—’’ through paragraph (13) and 
inserting ‘‘means, for fiscal years 2011 through 2019, the 
baseline, minus any spending designated as an emergency, 
for the preceding fiscal year as adjusted for inflation and’’. 
SEC. 102. SEQUESTRATION FOR DISCRETIONARY LIMITS. 
Subsection (a) of section 251 of the Balanced Budget 
and Emergency Deficit Control Act of 1985 are amended 
to read as follows: 
‘‘(a) SEQUESTRATION.— 
‘‘(1) IN GENERAL.—Not later than 45 calendar 
days after Congress adjourns to end a session, OMB 
shall conduct a sequestration to eliminate the budget 
year breach, if any, resulting from budget authority 
and outlays in excess of the discretionary spending 
limit. 
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‘‘(2) BREACH CALCULATION.—The breach is, if 
greater than zero, the breach for the budget year, 
minus any adjustments pursuant to subsection (b). 
‘‘(3) 
SEQUESTRATION.—To 
eliminate 
the 
breach in a budget year, each account shall be re-
duced by a dollar amount calculated by multiplying 
the level of sequesterable budgetary resources in that 
account at that time by the uniform percentage nec-
essary to enforce subsection (c). 
‘‘(4) LOOK BACK.—If, after June 30, an appro-
priation for the fiscal year in progress is enacted 
that causes a breach, the discretionary spending lim-
its for the next fiscal year shall be reduced by the 
amount or amounts of that breach.’’. 
SEC. 103. ADJUSTMENTS TO DISCRETIONARY SPENDING 
LIMITS. 
Section 251(b) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended to read as 
follows: 
‘‘(b) ADJUSTMENTS TO DISCRETIONARY SPENDING 
LIMITS.— 
‘‘(1) CONCEPTS AND DEFINITIONS.—When the 
President submits the budget under section 1105 of 
title 31, United States Code, OMB shall calculate 
and the budget shall include adjustments to discre-
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tionary spending limits (and those limits as cumula-
tively adjusted) for the budget year and each out-
year to reflect changes in concepts and definitions. 
Such changes shall equal the baseline levels of new 
budget authority and outlays using up-to-date con-
cepts and definitions minus those levels using the 
concepts and definitions in effect before such 
changes. Such changes may only be made after con-
sultation with the Committees on Appropriations 
and the Budget of the House of Representatives and 
the Senate and that consultation shall include writ-
ten communication to such committees that affords 
such committees the opportunity to comment before 
official action is taken for such changes. 
‘‘(2) ADJUSTMENTS.— 
‘‘(A) EMERGENCY
DESIGNATION.—If ap-
propriations for discretionary accounts are en-
acted that the President designates as emer-
gency requirements and that the Congress so 
designates in statute, the adjustment shall be 
the total of such appropriations in discretionary 
accounts designated as emergency requirements 
and the outlays flowing in all fiscal years from 
such appropriations. 
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‘‘(B) 
OVERSEAS
CONTINGENCY
OPER-
ATIONS
DESIGNATION.—If appropriations for 
discretionary accounts are enacted that the 
President designates as overseas contingency 
operations related to the global war on ter-
rorism, including Iraq and Afghanistan, that 
the Congress so designates in statute, the ad-
justment shall be the total of such appropria-
tions in discretionary accounts designated as 
overseas contingency operations and the outlays 
flowing in all fiscal years from such appropria-
tions. 
‘‘(3) SPECIAL OUTLAY ALLOWANCE.—If, in any 
fiscal year, outlays for a category exceed the discre-
tionary spending limit for that category but new 
budget authority does not exceed its limit for that 
category (after application of the first step of a 
spending reduction described in subsection (a)(2), if 
necessary), the adjustment in outlays for a fiscal 
year is the amount of the excess but not to exceed 
0.5 percent of the sum of the adjusted discretionary 
spending limits on outlays for that fiscal year.’’. 
SEC. 104. LOW-GROWTH REPORT. 
Section 254(i) of the Balanced Budget and Emer-
gency Deficit Control Act is amended to read as follows: 
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