II 
Calendar No. 106 
112TH CONGRESS 
1ST SESSION H. R. 2560 
IN THE SENATE OF THE UNITED STATES 
JULY 20 (legislative day, JULY 19), 2011 
Received; read twice and ordered placed on the calendar 
AN ACT 
To cut, cap, and balance the Federal budget. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Cut, Cap, and Balance 
Act of 2011’’. 
TITLE I—CUT 
SEC. 101. MODIFICATION OF THE CONGRESSIONAL BUDGET 
ACT. 
Title III of the Congressional Budget Act of 1974 
is amended by inserting at the end the following: 
‘‘SEC. 316. DISCRETIONARY SPENDING LIMITS. 
‘‘(a) IN GENERAL.—It shall not be in order in the 
House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, or conference report that 
would cause the discretionary spending limits as set forth 
in this section to be exceeded. 
‘‘(b) LIMITS.—In this section, the term ‘discretionary 
spending limits’ means for fiscal year 2012: for the discre-
tionary category, $1,019,402,000,000 in new budget au-
thority and $1,224,568,000,000 in outlays. 
‘‘(c) ADJUSTMENTS.—After the reporting of a bill or 
joint resolution relating to the global war on terrorism de-
scribed in subsection (d), or the offering of an amendment 
thereto or the submission of a conference report thereon— 
‘‘(1) the chair of the House or Senate Com-
mittee on the Budget may adjust the discretionary 
spending limits provided in this section for purposes 
of congressional enforcement, the budgetary aggre-
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gates in the concurrent resolution on the budget 
most recently adopted by the Senate and the House 
of Representatives, and allocations pursuant to sec-
tion 302(a) of the Congressional Budget Act of 
1974, by the amount of new budget authority in 
that measure for that purpose and the outlays flow-
ing therefrom; and 
‘‘(2) following any adjustment under paragraph 
(1), the House or Senate Committee on Appropria-
tions may report appropriately revised suballocations 
pursuant to section 302(b) of the Congressional 
Budget Act of 1974 to carry out this subsection. 
‘‘(d) GLOBAL WAR ON TERRORISM.—If a bill or joint 
resolution is reported making appropriations for fiscal 
year 2012 that provides funding for the global war on ter-
rorism, the allowable adjustments provided for in sub-
section (c) for fiscal year 2012 shall not exceed 
$126,544,000,000 in budget authority and the outlays 
flowing therefrom. 
‘‘SEC. 317. CERTAIN DIRECT SPENDING LIMITS. 
‘‘(a) IN GENERAL.—It shall not be in order in the 
House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, or conference report that 
includes any provision that would cause total direct spend-
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ing, except as excluded in subsection (b), to exceed the 
limits specified in subsection (c). 
‘‘(b) EXEMPT FROM DIRECT SPENDING LIMITS.— 
Direct spending for the following functions is exempt from 
the limits specified in subsection (c): 
‘‘(1) Social Security, function 650. 
‘‘(2) Medicare, function 570. 
‘‘(3) Veterans Benefits and Services, function 
700. 
‘‘(4) Net Interest, function 900. 
‘‘(c) LIMITS ON OTHER DIRECT SPENDING.—The 
total combined outlays for all direct spending not exempt-
ed in subsection (b) for fiscal year 2012 shall not exceed 
$680,730,000,000.’’. 
SEC. 102. STATUTORY ENFORCEMENT OF SPENDING CAPS 
THROUGH SEQUESTRATION. 
Title III of the Congressional Budget Act of 1974 
is amended by inserting after section 317 the following 
new section: 
‘‘SEC. 318. ENFORCEMENT OF DISCRETIONARY AND DIRECT 
SPENDING CAPS. 
‘‘(a) IMPLEMENTATION.—The sequesters shall be im-
plemented as follows: 
‘‘(1) DISCRETIONARY SPENDING IMPLEMENTA-
TION.—For the discretionary limits in section 316 of 
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the Congressional Budget Act of 1974, pursuant to 
section 251(a) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 with each cat-
egory sequestered separately. 
‘‘(2) DIRECT
SPENDING
IMPLEMENTATION.— 
(A) The sequestration to enforce this section for di-
rect spending shall be implemented pursuant to sec-
tion 254 of the Balanced Budget and Emergency 
Deficit Control Act of 1985. 
‘‘(B) Section 255 of the Balanced Budget and 
Control Act of 1985 shall not apply to this section, 
except that payments for military personnel accounts 
(within subfunctional category 051), TRICARE for 
Life, Medicare (functional category 570), military 
retirement, Social Security (functional category 
650), veterans (functional category 700), net inter-
est (functional category 900), and discretionary ap-
propriations shall be exempt. 
‘‘(b) MODIFICATION OF PRESIDENTIAL ORDER.— 
‘‘(1) IN GENERAL.—At any time after the Di-
rector of OMB issues a sequestration report under 
subsection (a) and section 319(c) the provisions of 
section 258A of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 shall apply to the 
consideration in the House of Representatives and 
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the Senate of a bill or joint resolution to override the 
order if the bill or joint resolution, as enacted, would 
achieve the same level of reductions in new budget 
authority and outlays for the applicable fiscal year 
as set forth in the order. 
‘‘(2) POINT OF ORDER.—In the House of Rep-
resentatives or Senate, it shall not be in order to 
consider a bill or joint resolution which waives, 
modifies, or in any way alters a sequestration order 
unless the chair of the House or Senate Committee 
on the Budget certifies that the measure achieves 
the same levels of reductions in new budget author-
ity and outlays for the applicable year as set forth 
in the order.’’. 
TITLE II—CAP 
SEC. 201. LIMIT ON TOTAL SPENDING. 
(a) DEFINITIONS.—Section 250(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended by striking paragraph (4), redesignating the suc-
ceeding paragraphs accordingly, and adding the following 
new paragraph: 
‘‘(19) The term ‘GDP’, for any fiscal year, 
means the gross domestic product during such fiscal 
year consistent with Department of Commerce defi-
nitions.’’. 
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(b) CAPS.—The Congressional Budget Act of 1974 
is amended by inserting after section 318 the following 
new section: 
‘‘SEC. 319. ENFORCING GDP OUTLAY LIMITS. 
‘‘(a) ENFORCING GDP OUTLAY LIMITS.—In this sec-
tion, the term ‘GDP outlay limit’ means an amount, as 
estimated by OMB, equal to— 
‘‘(1) projected GDP for that fiscal year as esti-
mated by OMB, multiplied by 
‘‘(2) 21.7 percent for fiscal year 2013; 20.8 
percent for fiscal year 2014; 20.2 percent for fiscal 
year 2015; 20.1 percent for fiscal year 2016; 19.9 
percent for fiscal year 2017; 19.7 percent for fiscal 
year 2018; 19.9 percent for fiscal year 2019; 19.9 
percent for fiscal year 2020; and 19.9 percent for 
fiscal year 2021. 
‘‘(b) GDP OUTLAY LIMIT AND OUTLAYS.— 
‘‘(1) DETERMINING THE GDP OUTLAY LIMIT.— 
The Office of Management and Budget shall estab-
lish in the President’s budget the GDP outlay limit 
for the budget year. 
‘‘(2) TOTAL FEDERAL OUTLAYS.—In this sec-
tion, total Federal outlays shall include all on-budget 
and off-budget outlays. 
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‘‘(c) SEQUESTRATION.—The sequestration to enforce 
this section shall be implemented pursuant to section 254 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985. 
‘‘(d) EXEMPT PROGRAMS.—Section 255 of the Bal-
anced Budget and Control Act of 1985 shall not apply 
to this section, except that payments for military per-
sonnel accounts (within subfunctional category 051), 
TRICARE for Life, Medicare (functional category 570), 
military retirement, Social Security (functional category 
650), veterans (functional category 700), and net interest 
(functional category 900) shall be exempt.’’. 
SEC. 202. ENFORCEMENT PROCEDURES UNDER THE CON-
GRESSIONAL BUDGET ACT OF 1974. 
(a) ENFORCEMENT.—Title III of the Congressional 
Budget Act of 1974 is amended by adding after section 
319 the following new section: 
‘‘SEC. 320. ENFORCEMENT PROCEDURES. 
‘‘It shall not be in order in the House of Representa-
tives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that would cause the 
most recently reported current GDP outlay limits set forth 
in section 319 of the Congressional Budget Act of 1974 
to be exceeded.’’. 
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(b) TABLE OF CONTENTS.—The table of contents in 
section 1(b) of the Congressional Budget and Impound-
ment Control Act of 1974 is amended by inserting after 
the item relating to section 315 the following new items: 
‘‘Sec. 316. Discretionary spending limits. 
‘‘Sec. 317. Certain direct spending limits. 
‘‘Sec. 318. Enforcement of discretionary and direct spending caps. 
‘‘Sec. 319. Enforcing GDP outlay limits. 
‘‘Sec. 320. Enforcement procedures.’’. 
TITLE III—BALANCE 
SEC. 301. REQUIREMENT THAT A BALANCED BUDGET 
AMENDMENT BE SUBMITTED TO STATES. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall not exercise the additional borrowing authority pro-
vided under subsection (b) until the Archivist of the 
United States transmits to the States H.J. Res. 1 in the 
form reported on June 23, 2011, S.J. Res. 10 in the form 
introduced on March 31, 2011, or H.J. Res. 56 in the 
form introduced on April 7, 2011, a balanced budget 
amendment to the Constitution, or a similar amendment 
if it requires that total outlays not exceed total receipts, 
that contains a spending limitation as a percentage of 
GDP, and requires that tax increases be approved by a 
two-thirds vote in both Houses of Congress for their ratifi-
cation. 
(b) AMENDMENT TO TITLE 31.—Effective on the 
date the Archivist of the United States transmits to the 
States H.J. Res 1 in the form reported, S.J. Res. 10 in 
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Calendar No. 106 
112TH CONGRESS 
1ST SESSION 
H. R. 2560 
AN ACT 
To cut, cap, and balance the Federal budget. 
JULY 20 (legislative day, JULY 19), 2011 
Received; read twice and ordered placed on the calendar 
VerDate Mar 15 2010 
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