103D CONGRESS
2D SESSION
H. R. 4604
AN ACT
To establish direct spending targets, 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. SHORT TITLE; PURPOSE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Budget Control Act of 1994’’.
(b) PURPOSE.—The purpose of this Act is to create
a mechanism to monitor total costs of direct spending pro-
grams, and, in the event that actual or projected costs ex-
ceed targeted levels, to require the President and Congress
to address adjustments in direct spending.
SEC. 2. ESTABLISHMENT OF DIRECT SPENDING TARGETS.
(a) IN GENERAL.—The initial direct spending targets
for each of fiscal years 1994 through 1997 shall equal
total outlays for all direct spending except net interest and
deposit insurance as determined by the Director of the Of-
fice of Management and Budget (hereinafter referred to
in this Act as the ‘‘Director’’) under subsection (b).
(b) INITIAL REPORT BY DIRECTOR.—
(1) Not later than 30 days after the date of en-
actment of this Act, the Director shall submit a re-
port to Congress setting forth projected direct
spending targets for each of fiscal years 1994
through 1997.
(2) The Director’s projections shall be based on
legislation enacted as of 5 days before the report is
submitted under paragraph (1). To the extent fea-
sible, the Director shall use the same economic and
technical assumptions used in preparing the concur-
rent resolution on the budget for fiscal year 1994
(H. Con. Res. 64, One Hundred Third Congress).
(c) ADJUSTMENTS.—Direct spending targets shall be
subsequently adjusted by the Director under section 6.
SEC. 3. ANNUAL REVIEW OF DIRECT SPENDING AND RE-
CEIPTS BY PRESIDENT.
As part of each budget submitted under section
1105(a) of title 31, United States Code, the President
shall provide an annual review of direct spending and re-
ceipts, which shall include (1) information supporting the
adjustment of direct spending targets pursuant to section
6, (2) information on total outlays for programs covered
by the direct spending targets, including actual outlays for
the prior fiscal year and projected outlays for the current
fiscal year and the 5 succeeding fiscal years, and (3) infor-
mation on the major categories of Federal receipts, includ-
ing a comparison between the levels of those receipts and
the levels projected as of the date of enactment of this
Act.
SEC. 4. SPECIAL DIRECT SPENDING MESSAGE BY PRESI-
DENT.
(a) TRIGGER.—In the event that the information sub-
mitted by the President under section 3 indicates—
(1) that actual outlays for direct spending in
the prior fiscal year exceeded the applicable direct
spending target, or
(2) that outlays for direct spending for the cur-
rent or budget year are projected to exceed the ap-
plicable direct spending targets,
the President shall include in his budget a special direct
spending message meeting the requirements of subsection
(b).
(b) CONTENTS.—(1) The special direct spending
message shall include:
(A) An explanation of any adjustments to the
direct spending targets pursuant to section 6.
(B) An analysis of the variance in direct spend-
ing over the adjusted direct spending targets.
(C) The President’s recommendations for ad-
dressing the direct spending overages, if any, in the
prior, current, or budget year.
(2) The President’s recommendations may consist of
any of the following:
(A) Proposed legislative changes to reduce out-
lays, increase revenues, or both, in order to recoup
or eliminate the overage for the prior, current, and
budget years in the current year, the budget year,
and the 4 outyears.
(B) Proposed legislative changes to reduce out-
lays, increase revenues, or both, in order to recoup
or eliminate part of the overage for the prior, cur-
rent, and budget year in the current year, the budg-
et year, and the 4 outyears, accompanied by a find-
ing by the President that, because of economic con-
ditions or for other specified reasons, only some of
the overage should be recouped or eliminated by out-
lay reductions or revenue increases, or both.
(C) A proposal to make no legislative changes
to recoup or eliminate any overage, accompanied by
a finding by the President that, because of economic
conditions or for other specified reasons, no legisla-
tive changes are warranted.
(3) Except as provided by paragraph (4), any pro-
posed legislative change under paragraph (2) to reduce
outlays may include reductions in direct spending or in
the discretionary spending limits under section 601 of the
Congressional Budget Act of 1974.
(4) The President’s recommendations may not con-
sist of any proposed legislative changes under the old-age,
survivors, and disability insurance program established
under title II of the Social Security Act.
(c) PROPOSED SPECIAL DIRECT SPENDING RESOLU-
TION.—
(1) PRESIDENT’S
RECOMMENDATIONS
TO
BE
SUBMITTED AS DRAFT RESOLUTION.—If the Presi-
dent recommends reductions consistent with sub-
section (b)(2)(A) or (B), the special direct spending
message shall include the text of a special direct
spending resolution implementing the President’s
recommendations through reconciliation directives
instructing the appropriate committees of the House
of Representatives and Senate to determine and rec-
ommend changes in laws within their jurisdictions to
reduce outlays or increase revenues by specified
amounts. If the President recommends no reductions
pursuant to (b)(2)(C), the special direct spending
message shall include the text of a special resolution
concurring in the President’s recommendation of no
legislative action.
(2) RESOLUTION
TO
BE
INTRODUCED
IN
HOUSE.—Within 10 days after the President’s spe-
cial direct spending message is submitted, the text
required by paragraph (1) shall be introduced as a
concurrent resolution in the House of Representa-
tives by the chairman of the Committee on the
Budget of the House of Representatives without sub-
stantive revision. If the chairman fails to do so, after
the tenth day the resolution may be introduced by
any Member of the House of Representatives. A con-
current resolution introduced under this paragraph
shall be referred to the Committee on the Budget.
SEC. 5. REQUIRED RESPONSE BY CONGRESS.
(a) REQUIREMENT FOR SPECIAL DIRECT SPENDING
RESOLUTION.—Whenever the President submits a special
direct spending message under section 4, the Committee
on the Budget of the House of Representatives shall re-
port, not later than April 15, the concurrent resolution
on the budget and include in it a separate title that meets
the requirements of subsections (b) and (c).
(b) CONTENTS OF SEPARATE TITLE.—The separate
title of the concurrent resolution on the budget shall con-
tain reconciliation directives to the appropriate committees
of the House of Representatives and Senate to determine
and recommend changes in laws within their jurisdictions
to reduce outlays or increase revenues by specified
amounts (which in total equal or exceed the reductions
recommended by the President, up to the amount of the
overage). If this separate title recommends that no legisla-
tive changes be made to recoup or eliminate an overage,
then a statement to that effect shall be set forth in that
title.
(c) REQUIREMENT
FOR SEPARATE VOTE
TO IN-
CREASE TARGETS.—If the separate title of a concurrent
resolution on the budget proposes to recoup or eliminate
less than the entire overage for the prior, current, and
budget years, then the Committee on the Budget of the
House of Representatives shall report a resolution direct-
ing the Committee on Government Operations to report
legislation increasing the direct spending targets for each
applicable year by the full amount of the overage not re-
couped or eliminated. It shall not be in order in the House
of Representatives to consider that concurrent resolution
on the budget until the House of Representatives has
agreed to the resolution directing the increase in direct
spending targets.
(d) CONFERENCE REPORTS MUST FULLY ADDRESS
OVERAGE.—It shall not be in order in the House of Rep-
resentatives to consider a conference report on a concur-
rent resolution on the budget unless that conference report
fully addresses the entirety of any overage contained in
the applicable report of the President under section 4
through reconciliation directives requiring spending reduc-
tions, revenue increases, or changes in the direct spending
targets.
(e) PROCEDURE
IF HOUSE BUDGET COMMITTEE
FAILS TO REPORT REQUIRED RESOLUTION.—
(1) AUTOMATIC DISCHARGE OF HOUSE BUDGET
COMMITTEE.—If a special direct spending resolution
is required and the Committee on the Budget of the
House of Representatives fails to report a resolution
meeting the requirements of subsections (b) and (c)
by April 15, then the committee shall be automati-
cally discharged from further consideration of the
concurrent resolution reflecting the President’s rec-
ommendations 
introduced 
pursuant 
to 
section
4(c)(2) and the concurrent resolution shall be placed
on the appropriate calendar.
(2) CONSIDERATION
BY
HOUSE.—Ten days
after the Committee on the Budget of the House of
Representatives has been discharged under para-
graph (1), any Member may move that the House
proceed to consider the resolution. Such motion shall
be highly privileged and not debatable.
(f) APPLICATION
OF
CONGRESSIONAL
BUDGET
ACT.—To the extent that they are relevant and not incon-
sistent with this Act, the provisions of title III of the Con-
gressional Budget Act of 1974 shall apply in the House
of Representatives and the Senate to special direct spend-
ing resolutions, resolutions increasing targets under sub-
section (c), and reconciliation legislation reported pursu-
ant to directives contained in those resolutions.
(g) LIMITATION ON CHANGES TO THE SOCIAL SECU-
RITY ACT.—Notwithstanding any other provision of law,
it shall not be in order in the Senate or the House of Rep-
resentatives to consider any reconciliation bill reported
pursuant to a concurrent resolution on the budget agreed
to under section 301 or 304 or reconciliation legislation
reported pursuant to directives contained in any special
direct spending resolution, or any amendment thereto or
conference report thereon, that contains recommendations
to make any legislative changes under the old-age, survi-
vors, and disability insurance program established under
title II of the Social Security Act.
SEC. 6. ADJUSTMENTS TO DIRECT SPENDING TARGETS.
(a) REQUIRED ANNUAL ADJUSTMENTS.—Prior to
the submission of the President’s budget for each of fiscal
years 1994 through 1997, the Director shall adjust the
direct spending targets in accordance with this section.
Any such adjustments shall be reflected in the targets
used in the President’s report under section 3 and mes-
sage (if any) under section 4.
(b) ADJUSTMENT
FOR
INCREASES
IN
BENE-
FICIARIES.—(1) The Director shall adjust the direct
spending targets for increases (if any) in actual or pro-
jected numbers of beneficiaries under direct spending pro-
grams for which the number of beneficiaries is a variable
in determining costs.
(2) The adjustment shall be made by —
(A) computing, for each program under para-
graph (1), the percentage change between (i) the an-
nual average number of beneficiaries under that pro-
gram (including actual numbers of beneficiaries for
the prior fiscal year and projections for the budget
and subsequent fiscal years) to be used in the Presi-
dent’s budget with which the adjustments will be
submitted, and (ii) the annual average number of
beneficiaries used in the adjustments made by the
Director in the previous year (or, in the case of ad-
justments made in 1994, the annual average number
of beneficiaries used in the Director’s initial report
under section 2(b));
(B) applying the percentages computed under
subparagraph (A) to the projected levels of outlays
for each program consistent with the direct spending
targets in effect immediately prior to the adjust-
ment; and
(C) adding the results of the calculations re-
quired by subparagraph (B) to the direct spending
targets in effect immediately prior to the adjust-
ment.
(3) No adjustment shall be made for any program
for a fiscal year in which the percentage increase com-
puted under paragraph (2)(A) is less than or equal to
zero.
(c) ADJUSTMENTS FOR REVENUE LEGISLATION.—
(1) The Director shall adjust the targets as follows—
(A) they shall be increased by the amount of
any increase in receipts; or
(B) they shall be decreased by the amount of
any decrease in receipts,
resulting from receipts legislation enacted after the date
of enactment of this Act, except legislation enacted under
section 5.
(d) ADJUSTMENTS
TO REFLECT CONGRESSIONAL
DECISIONS.—Upon enactment of a reconciliation bill pur-
suant to instructions under section 5, the Director shall
adjust direct spending targets for the current year, the
budget year, and each outyear through 1997 by—
(1) increasing the target for the current year
and the budget year by the amount stated for that
year in that reconciliation bill (but if a separate vote
was required by section 5(c), only if that vote has
occurred); and
(2) decreasing the target for the current, budg-
et, and outyears through 1997 by the amount of re-
ductions in direct spending enacted in that reconcili-
ation bill.
(e) DESIGNATED EMERGENCIES.—The Director shall
adjust the targets to reflect the costs of legislation that
is designated as an emergency by Congress and the Presi-
dent under section 252(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985.
SEC. 7. RELATIONSHIP TO BALANCED BUDGET AND EMER-
GENCY DEFICIT CONTROL ACT.
Reductions in outlays or increases in receipts result-
ing from legislation reported pursuant to section 5 shall
not be taken into account for purposes of any budget en-
forcement procedures under the Balanced Budget and
Emergency Deficit Control Act of 1985.
SEC. 8. ESTIMATING MARGIN.
For any fiscal year for which the overage is less than
one-half of 1 percent of the direct spending target for that
year, the procedures set forth in sections 4 and 5 shall
not apply.
SEC. 9. CONSIDERATION OF APPROPRIATION BILLS.
(a) POINT OF ORDER.—It shall not be in order in
the House of Representatives to consider any general ap-
propriation bill if the President has submitted a direct
spending message under section 4 until Congress has
adopted a concurrent resolution on the budget for the
budget year that meets the requirements of section 5.
(b) WAIVER.—The point of order established by sub-
section (a) may only be waived for all general appropria-
tion bills for that budget year through the adoption of one
resolution waiving that point of order.
SEC. 10. MEANS-TESTED PROGRAMS.
In making recommendations under sections 4 and 5,
the President and the Congress should seriously consider
all other alternatives before proposing reductions in
means-tested programs.
SEC. 11. EFFECTIVE DATE.
This Act shall apply to direct spending targets for
fiscal years 1994 through 1997 and shall expire at the
end of fiscal year 1997.
Passed the House of Representatives July 21, 1994.
Attest:
Clerk.