To cut, cap, and balance the Federal budget.

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 discretionary category, 
$1,019,402,000,000 in new budget authority 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 described 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 Committee on the 
        Budget may adjust the discretionary spending limits provided in 
        this section for purposes of congressional enforcement, the 
        budgetary aggregates in the concurrent resolution on the budget 
        most recently adopted by the Senate and the House of 
        Representatives, and allocations pursuant to section 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 flowing therefrom; and
            ``(2) following any adjustment under paragraph (1), the 
        House or Senate Committee on Appropriations 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 terrorism, the allowable adjustments 
provided for in subsection (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 spending, 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 exempted 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 implemented as 
follows:
            ``(1) Discretionary spending implementation.--For the 
        discretionary limits in section 316 of the Congressional Budget 
        Act of 1974, pursuant to section 251(a) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 with each category 
        sequestered separately.
            ``(2) Direct spending implementation.--(A) The 
        sequestration to enforce this section for direct spending shall 
        be implemented pursuant to section 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 interest (functional 
        category 900), and discretionary appropriations shall be 
        exempt.
    ``(b) Modification of Presidential Order.--
            ``(1) In general.--At any time after the Director of OMB 
        issues a sequestration report under subsection (a) and section 
        319(c) the provisions of section 258A of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 shall apply to the 
        consideration in the House of Representatives and 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 Representatives 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 authority 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 succeeding 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 definitions.''.
    (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 section, the term `GDP 
outlay limit' means an amount, as estimated by OMB, equal to--
            ``(1) projected GDP for that fiscal year as estimated 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 establish in the President's budget 
        the GDP outlay limit for the budget year.
            ``(2) Total federal outlays.--In this section, total 
        Federal outlays shall include all on-budget and off-budget 
        outlays.
    ``(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 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), and net interest (functional category 900) 
shall be exempt.''.

SEC. 202. ENFORCEMENT PROCEDURES UNDER THE CONGRESSIONAL 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 Representatives 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.''.
    (b) Table of Contents.--The table of contents in section 1(b) of 
the Congressional Budget and Impoundment 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 provided 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 ratification.
    (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 the form introduced, or H.J. Res. 56 in the 
form introduced, a balanced budget amendment to the Constitution, or a 
similar amendment if it requires that total outlays not exceed total 
receipts, contains a spending limitation as a percentage of GDP, and 
requires tax increases be approved by a two-thirds vote in both Houses 
of Congress for their ratification, section 3101(b) of title 31, United 
States Code, is amended by striking the dollar limitation contained in 
such subsection and inserting $16,700,000,000,000.

            Passed the House of Representatives July 19, 2011.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Cut, Cap, and Balance Act of 2011 - Title I: Cut - (Sec. 101) Amends the Congressional Budget Act of 1974 (CBA) to make it out of order in both chambers to consider any bill, joint resolution, amendment, or conference report that would cause the discretionary spending limits established in this Act to be exceeded.

Establishes the discretionary spending limits for FY2012 as $1,019,402,000,000 in new budget authority and $1,224,568,000,000 in outlays.

Authorizes the Chairman of the Senate Committee on the Budget to adjust such limits, budgetary aggregates in the most recently adopted concurrent budget resolution, and CBA committee allocations if a bill or joint resolution is reported making appropriations for FY2012 that provides funding for the global war on terrorism.

Makes it out of order in both chambers to consider any legislation that includes any provision that would cause total direct spending to exceed the spending limit specified in this Act. Exempts from such spending limits: (1) Social Security, function 650; (2) Medicare, function 570; (3) Veterans Benefits and Services, function 700; and (4) Net Interest, function 900.

Makes $680.73 billion the limit on total combined outlays for all non-exempt direct spending for FY2012.

(Sec. 102) Amends the CBA to prescribe requirements for implementing sequestration orders under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to enforce the discretionary and direct spending caps in this Act.

Exempts from any sequestration orders: (1) payments for military personnel accounts (within subfunctional category 051), (2) TRICARE for Life, (3) Medicare (functional category 570), (4) military retirement, (5) Social Security (functional category 650), (6) veterans (functional category 700), (7) net interest (functional category 900), and (8) discretionary appropriations.

Makes it out of order in both chambers to consider legislation 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 authority and outlays for the applicable year in such order.

Title II: Cap - (Sec. 201) Amends the CBA to prescribe requirements for enforcing GDP outlay limits.

Requires: (1) the Office of Management and Budget (OMB) to establish in the President's budget the GDP outlay limit for the budget year, and (2) total federal outlays to include all on-budget and off-budget outlays.

(Sec. 202) Amends the CBA to make it out of order in both chambers to consider any legislation that would cause the most recently reported current GDP outlay limits set forth in this Act to be exceeded.

Title III: Balance - (Sec. 301) Prohibits the Secretary of the Treasury from exercising additional borrowing authority until the date that the Archivist of the United States transmits to the states for their ratification H.J. Res. 1 (as reported on June 23, 2011), S.J. Res. 10 (as introduced on March 31, 2011), or H.J. Res. 56 (as 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, contains a spending limitation as a percentage of GDP, and requires that tax increases be approved by a two-thirds vote in both chambers.

Increases the public debt from $14.294 trillion to $16.7 trillion on the date such legislation is transmitted to the states.