described by the Joint Chiefs of Staff, rather than 
addressing the drivers of our debt. 
(5) Secretary Panetta was correct in his assess-
ment of January 10, 2013 that the civilian furloughs 
resulting from full sequestration would also, ‘‘. . . 
further harm our readiness and create hardship on 
them and their families. In a word—in a word, we 
would be forced to . . . hollow out the defense force 
of this nation.’’. 
(6) Any plan to avert sequestration and provide 
additional time for political negotiations on a truly 
balanced deficit reduction package must use addi-
tional savings that do not increase the risk to mili-
tary personnel or degrade the readiness or capabili-
ties of our Armed Forces. This goal can be achieved 
by providing tools to reshape the Federal civilian 
workforce without furloughs. 
SEC. 3. REDUCTION IN THE NUMBER OF FEDERAL EMPLOY-
EES. 
(a) DEFINITION.—In this section, the term ‘‘agency’’ 
means an executive agency as defined under section 105 
of title 5, United States Code. 
(b) DETERMINATION OF NUMBER OF EMPLOYEES.— 
Not later than 60 days after the date of enactment of this 
Act, the Director of the Office of Management and Budget 
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shall determine the number of full-time employees em-
ployed in each agency. The head of each agency shall co-
operate with the Director of the Office of Management 
and Budget in making the determinations. 
(c) REPLACEMENT HIRE RATE.— 
(1) IN GENERAL.—During the period described 
under paragraph (2), the head of each agency may 
hire no more than 1 employee in that agency for 
every 3 employees who leave employment in that 
agency. 
(2) PERIOD OF REPLACEMENT HIRE RATE.— 
Paragraph (1) shall apply to each agency during the 
period beginning 60 days after the date of enact-
ment of this Act through the date on which the Di-
rector of the Office of Management and Budget 
makes a determination that the number of full-time 
employees employed in that agency is 10 percent less 
than the number of full-time employees employed in 
that agency determined under subsection (a). 
(d) WAIVERS.—This section may be waived upon a 
determination by the President that— 
(1) the existence of a state of war or other na-
tional security concern so requires; or 
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(2) the existence of an extraordinary emergency 
threatening life, health, public safety, property, or 
the environment so requires. 
SEC. 4. REDUCTION OF DISCRETIONARY SPENDING LIMITS 
TO ACHIEVE SAVINGS FROM FEDERAL EM-
PLOYEE PROVISIONS. 
Paragraphs (2) through (10) of section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 
1985 are amended to read as follows: 
‘‘(2) with respect to fiscal year 2013, for the 
discretionary category, $1,043,000,000,000 in new 
budget authority; 
‘‘(3) with respect to fiscal year 2014— 
‘‘(A) 
for 
the 
security 
category, 
$549,000,000,000 in budget authority; and 
‘‘(B) 
for 
the 
nonsecurity 
category, 
$500,000,000,000 in budget authority; 
‘‘(4) with respect to fiscal year 2015— 
‘‘(A) 
for 
the 
security 
category, 
$562,000,000,000 in budget authority; and 
‘‘(B) 
for 
the 
nonsecurity 
category, 
$514,000,000,000 in budget authority; 
‘‘(5) with respect to fiscal year 2016— 
‘‘(A) 
for 
the 
security 
category, 
$573,000,000,000 in budget authority; and 
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‘‘(B) 
for 
the 
nonsecurity 
category, 
$523,000,000,000 in budget authority; 
‘‘(6) with respect to fiscal year 2017— 
‘‘(A) 
for 
the 
security 
category, 
$586,000,000,000 in budget authority; and 
‘‘(B) 
for 
the 
nonsecurity 
category, 
$534,000,000,000 in budget authority; 
‘‘(7) with respect to fiscal year 2018— 
‘‘(A) 
for 
the 
security 
category, 
$599,000,000,000 in budget authority; and 
‘‘(B) 
for 
the 
nonsecurity 
category, 
$546,000,000,000 in budget authority; 
‘‘(8) with respect to fiscal year 2019— 
‘‘(A) 
for 
the 
security 
category, 
$612,000,000,000 in budget authority; and 
‘‘(B) 
for 
the 
nonsecurity 
category, 
$559,000,000,000 in budget authority; 
‘‘(9) with respect to fiscal year 2020— 
‘‘(A) 
for 
the 
security 
category, 
$626,000,000,000 in budget authority; and 
‘‘(B) 
for 
the 
nonsecurity 
category, 
$571,000,000,000 in budget authority; and 
‘‘(10) with respect to fiscal year 2021— 
‘‘(A) 
for 
the 
security 
category, 
$640,000,000,000 in budget authority; and 
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‘‘(B) 
for 
the 
nonsecurity 
category, 
$583,000,000,000 in budget authority;’’. 
SEC. 5. CALCULATION OF TOTAL DEFICIT REDUCTION. 
Section 251A of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended— 
(1)(A) 
in 
paragraph 
(3)(A), 
by 
striking 
‘‘$1,200,000,000,000’’ 
and 
inserting 
‘‘$1,091,000,000,000’’ and in paragraph (3)(D), by 
striking ‘‘9’’ and inserting ‘‘8’’; and 
(B) in paragraph (3)(C), by inserting ‘‘and’’ 
after the semicolon, in paragraph (3)(D) by striking 
‘‘; and’’ and inserting a period, and by striking para-
graph (3)(E); 
(2) in paragraph (4), by striking ‘‘On March 1, 
2013, for fiscal year 2013, and in’’ and inserting 
‘‘In’’; 
(3) in paragraphs (5) and (6), by striking 
‘‘2013’’ each place it appears and inserting ‘‘2014’’; 
and 
(4) in paragraph (7), by striking subparagraph 
(A) and by striking ‘‘(B) FISCAL YEARS 2014–2021.— 
’’, moving the remaining text 2 ems to the left, and 
redesignating clauses (i) and (ii) as subparagraphs 
(A) and (B), respectively. 
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SEC. 6. TRANSFER AUTHORITY FOR FUNDING OF DEPART-
MENT OF DEFENSE UNDER CONTINUING RES-
OLUTION 
AND 
SEQUESTER 
CONSISTENT 
WITH AMOUNTS AUTHORIZED BY NATIONAL 
DEFENSE AUTHORIZATION ACT FOR FISCAL 
YEAR 2013. 
(a) IN GENERAL.—In accordance with subsection (b), 
the Secretary of Defense may transfer amounts appro-
priated for the Department of Defense by the Continuing 
Appropriations Resolution (Public Law 112–175) among 
accounts of the Department of Defense. 
(b) TRANSFERS CONSISTENT WITH AMOUNTS AP-
PROPRIATED OR AUTHORIZED.—In the event of any trans-
fers under subsection (a), the total amount in any account 
of the Department of Defense that is available for obliga-
tion and expenditure in fiscal year 2013 shall be consistent 
with, and may not exceed— 
(1) if a regular appropriation Act making ap-
propriations for the Department of Defense for fis-
cal year 2013 is enacted before the date of the 
transfer, the level provided for that account for that 
fiscal year by applicable provisions of such Act; or 
(2) if no such Act is enacted before the date of 
the transfer, the amount authorized to be appro-
priated for that account for that fiscal year by appli-
cable provisions of division A of the National De-
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fense Authorization Act for Fiscal Year 2013 (Pub-
lic Law 112–239). 
(c) NOTICE TO CONGRESS.—Not later than 15 days 
before any transfer under subsection (a), the Secretary of 
Defense shall submit to the congressional defense commit-
tees a report setting forth a description of the transfer, 
including the amount of the transfer and the accounts 
from and to which the funds were transferred. 
(d) TRANSFER SUBJECT
TO NOTIFICATION RE-
QUIREMENTS.—In addition to the notice required under 
subsection (c), a transfer under subsection (a) shall be 
subject to the applicable notification requirements for re-
programming in division A of Public Law 112–74. 
(e) TRANSFER AUTHORITY.—The transfer authority 
provided by subsection (a) is in addition to any other 
transfer authority provided by law. 
(f) DEFINITION.—In this section, the term ‘‘congres-
sional defense committees’’ has the meaning given that 
term in section 101(a)(16) of title 10, United States Code. 
SEC. 7. NO COST-OF-LIVING ADJUSTMENTS FOR MEMBERS 
OF CONGRESS. 
Notwithstanding any other provision of law, no ad-
justment shall be made under section 601(a) of the Legis-
lative Reorganization Act of 1946 (2 U.S.C. 31) (relating 
to cost-of-living adjustments for Members of Congress) for 
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any fiscal year for which the Congressional Budget Office 
determines there is a Federal budget deficit. 
Æ 
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