I 
109TH CONGRESS 
2D SESSION 
H. R. 6426 
To amend the Balanced Budget and Emergency Deficit Control Act of 1985 
to provide for a sequestration on December 31, 2009, to eliminate the 
actual budget deficit for fiscal year 2009, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 8, 2006 
Mr. BARTON of Texas (for himself and Mr. TERRY) introduced the following 
bill; which was referred to the Committee on the Budget 
A BILL 
To amend the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 to provide for a sequestration on De-
cember 31, 2009, to eliminate the actual budget deficit 
for fiscal year 2009, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SEQUESTRATION OF FEDERAL SPENDING TO 
ELIMINATE THE FY2009 BUDGET DEFICIT. 
(a) SEQUESTRATION
TO
REDUCE
THE
PUBLIC 
DEBT.—Part C of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding after 
section 253 the following new sections: 
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‘‘SEC. 253A. SEQUESTRATION TO ELIMINATE THE FY2009 
BUDGET DEFICIT. 
‘‘(a) SEQUESTRATION.—On December 31, 2009, 
there shall be a sequestration of an amount equivalent to 
the actual amount of the deficit (if any) for fiscal year 
2009, as determined by OMB. OMB shall submit its def-
icit report to the House of Representatives, the Senate, 
and the President not later than December 15, 2009. On 
the following day a notice of the report shall be printed 
in the Federal Register. 
‘‘(b) APPLICABILITY.—Except as provided by sec-
tions 253B and 253C, each account of the United States 
shall be reduced by a dollar amount calculated by multi-
plying the level of budgetary resources in that account at 
that time by the uniform percentage necessary to carry 
out subsection (a). All obligational authority reduced 
under this section shall be done in a manner that makes 
such reductions permanent. 
‘‘(c) FINAL SEQUESTRATION REPORT.— 
‘‘(1) REPORTING REQUIREMENT.—On the date 
specified in subsection (a), OMB shall issue a final 
sequestration report, updated to reflect laws enacted 
through that date. 
‘‘(2) CONTENT.—The final report shall set 
forth estimates for each of the following: 
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‘‘(A) For each category for which a seques-
tration is required, the sequestration percent-
ages necessary to achieve the required reduc-
tion. 
‘‘(B) For the budget year, for each account 
to be sequestered, estimates of the baseline level 
of sequesterable budgetary resources and result-
ing outlays and the amount of budgetary re-
sources to be sequestered and resulting outlay 
reductions. 
‘‘(C) The effects on outlays of the seques-
tration in each outyear for direct spending pro-
grams. 
‘‘(d) PRESIDENTIAL ORDER.—On the date specified 
in subsection (a), if in its final sequestration report OMB 
estimates that any sequestration is required, the President 
shall issue an order fully implementing without change all 
sequestrations required by the OMB calculations set forth 
in that report. This order shall be effective on issuance.’’. 
SEC. 253B. EXEMPT ACCOUNTS. 
‘‘(a) SOCIAL SECURITY BENEFITS; TIER I RAILROAD 
RETIREMENT BENEFITS; AND MEDICARE BENEFITS.— 
(1) Benefits payable under the old-age, survivors, and dis-
ability insurance program established under title II of the 
Social Security Act, and benefits payable under section 
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3(a), 3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act 
of 1974, shall be exempt from reduction under the order 
issued under section 253A. 
‘‘(2) Payments made under title XVIII of the Social 
Security Act shall be exempt from reduction under the 
order issued under section 253A. 
‘‘(b) DESCRIPTIONS
AND
LISTS.—The following 
budget accounts or activities shall be exempt from seques-
tration under section 253A: 
‘‘(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 
spending budget account to another Federal budget 
account; 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; 
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