To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to extend the discretionary spending limits through fiscal year 2007.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congressional Act to Prioritize 
Spending''.

SEC. 2. AMENDMENTS TO SECTIONS 251 AND 275.

    (a) Adjustments to Discretionary Spending Limits.--In the matter 
that precedes subparagraph (A) of section 251(b)(2) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, strike ``through 
2002''.
    (b) Discretionary Spending Limit.--Section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended as follows:
            (1) Strike paragraphs (1) through (5) and redesignate 
        paragraph (6) (which relates to fiscal year 2002) as paragraph 
        (1).
            (2) Redesignate paragraph (7) (which relates to fiscal year 
        2003) as paragraph (2) and in such redesignated paragraph 
        redesignate subparagraphs (A), (B), and (C) as subparagraphs 
        (B), (C), and (D), respectively, and before subparagraph (B), 
        insert the following new subparagraph:
                    ``(A) for the discretionary category: 
                $746,174,000,000 in new budget authority of which not 
                less than $382,742,000,000 shall be for the defense 
                category and $738,992,000,000 in outlays of which not 
                less than $368,865,000,000 shall be for the defense 
                category;''.
            (3) Redesignate paragraph (8) as paragraph (3) and in such 
        redesignated paragraph strike ``with respect to fiscal year 
        2004'', redesignate the remaining matter as subparagraph (C), 
        and before such redesignated matter insert the following:
            ``(3) with respect to fiscal year 2004--
                    ``(A) for the discretionary category: 
                $776,975,000,000 in new budget authority of which not 
                less than $400,502,000,000 shall be for the defense 
                category and $804,529,000,000 in outlays of which not 
                less than $387,092,000,000 shall be for the defense 
                category;
                    ``(B) for the highway category: $29,972,000,000 in 
                outlays; and''.
            (4) Redesignate paragraph (9) as paragraph (4) and in such 
        redesignated paragraph strike ``with respect to fiscal year 
        2005'', redesignate the remaining matter as subparagraph (B), 
        and before such redesignated matter insert the following:
            ``(4) with respect to fiscal year 2005--
                    ``(A) for the discretionary category: 
                $804,455,000,000 in new budget authority of which not 
                less than $421,498,000,000 shall be for the defense 
                category and $829,209,000,000 in outlays of which not 
                less than $408,006,000,000 shall be for the defense 
                category;''.
            (5) Redesignate paragraph (10) as paragraph (5) and in such 
        redesignated paragraph strike ``with respect to fiscal year 
        2006'', redesignate the remaining matter as subparagraph (B), 
        and before such redesignated matter insert the following:
            ``(5) with respect to fiscal year 2006--
                    ``(A) for the discretionary category: 
                $831,378,000,000 in new budget authority of which not 
                less than $442,515,000,000 shall be for the defense 
                category and $849,064,000,000 in outlays of which not 
                less than $423,377,000,000 shall be for the defense 
                category;''.
            (6) After paragraph (5), add the following new paragraph:
            ``(6) with respect to fiscal year 2007, for the 
        discretionary category: $864,998,000,000 in new budget 
        authority of which not less than $464,415,000,000 shall be for 
        the defense category and $873,675,000,000 in outlays of which 
        not less than $437,217,000,000 shall be for the defense 
        category;''.
            (7) Redesignate paragraphs (11) through (16) as paragraphs 
        (7) through (12), respectively.
    (c) Adjustments to Discretionary Spending Limits.--Section 
251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 
1985 is amended by striking subparagraphs (C) through (F) and by 
redesignating subparagraphs (G) and (H) as subparagraphs (C) and (D), 
respectively, and by inserting after subparagraph (D) (as redesignated) 
the following new subparagraphs:
                    ``(E) War on terrorism.--(i) If a bill or joint 
                resolution is enacted providing new budget authority 
                for the Department of Defense to prosecute the war on 
                terrorism, the adjustment shall be for fiscal year 
                2003, $10,000,000,000 in new budget authority and 
                outlays flowing therefrom.
                    ``(ii) An adjustment may not be made under this 
                subparagraph if the funds are designated as an 
                emergency requirement.
                    ``(iii) As used in this subparagraph, the term 
                `budget authority for the Department of defense to 
                prosecute the war on terrorism' means budget authority 
                specifically designated for that purpose in the bill or 
                joint resolution providing the budget authority or 
                specifically designated for that purpose in a bill or 
joint resolution authorizing funding for the Department of Defense.
                    ``(F) Special education.--(i) If a bill or joint 
                resolution is enacted that provides in excess of 
                $7,529,000,000 in new budget authority for fiscal year 
                2003 for grants to States authorized under part B of 
                the Individuals with Disabilities Education Act (IDEA), 
                the adjustment shall be for fiscal year 2003, 
                $1,000,000,000 in new budget authority and outlays 
                flowing therefrom.
                    ``(ii) If a bill or joint resolution is enacted 
                that provides at least $9,587,000,000 in new budget 
                authority for fiscal year 2004 for grants to States 
                authorized under part B of the Individuals with 
                Disabilities Education Act (IDEA), the adjustment shall 
                be for fiscal year 2004, $1,752,000,000 in new budget 
                authority and outlays flowing therefrom.
                    ``(iii) If a bill or joint resolution is enacted 
                that provides at least $10,755,000,000 in new budget 
                authority for fiscal year 2005 for grants to States 
                authorized under part B of the Individuals with 
                Disabilities Education Act (IDEA), the adjustment shall 
                be for fiscal year 2005, $2,763,000,000 in new budget 
                authority and outlays flowing therefrom.
                    ``(iv) If a bill or joint resolution is enacted 
                that provides at least $12,047,000,000 in new budget 
                authority for fiscal year 2006 for grants to States 
                authorized under part B of the Individuals with 
                Disabilities Education Act (IDEA), the adjustment shall 
                be for fiscal year 2006, $3,894,000,000 in new budget 
                authority and outlays flowing therefrom.
                    ``(v) If a bill or joint resolution is enacted that 
                provides at least $13,497,000,000 in new budget 
                authority for fiscal year 2007 for grants to States 
                authorized under part B of the Individuals with 
                Disabilities Education Act (IDEA), the adjustment shall 
                be for fiscal year 2007, $5,180,000,000 in new budget 
                authority and outlays flowing therefrom.
                    ``(G) Accrual accounting.--If a bill or joint 
                resolution is enacted that charges Federal agencies for 
                the full cost of accrued Federal retirement and health 
                benefits and a bill or joint resolution making 
                appropriations is enacted that provides new budget 
                authority to carry out the legislation charging Federal 
                agencies for such accrued costs, the adjustment shall 
                be equal to the reduction in mandatory budget authority 
                and the outlays flowing therefrom estimated to result 
                from the legislation charging Federal agencies for such 
                accrued costs.
                    ``(H) Reclassification of student aid accounts.--If 
                a bill or joint resolution is enacted that amends the 
                Higher Education Act to make student aid administration 
                subject to annual appropriations, the adjustment shall 
                be:
                            ``(i) for fiscal year 2003, $797,000,000 in 
                        additional new budget authority and the outlays 
                        flowing therefrom;
                            ``(ii) for fiscal year 2004, $813,000,000 
                        in additional new budget authority and the 
                        outlays flowing therefrom;
                            ``(iii) for fiscal year 2005, $833,000,000 
                        in additional new budget authority and the 
                        outlays flowing therefrom;
                            ``(iv) for fiscal year 2006, $851,000,000 
                        in additional new budget authority and the 
                        outlays flowing therefrom;
                            ``(v) for fiscal year 2007, $871,000,000 in 
                        additional new budget authority and the outlays 
                        flowing therefrom.
                    ``(I) Highway category.--(i) If a bill or joint 
                resolution is enacted that establishes an obligation 
                limitation in excess of $23,864,000,000 for fiscal year 
                2003 for programs, projects, and activities within the 
                highway category, the adjustment to the highway 
                category shall be equal to the excess but not to exceed 
                $1,180,000,000 in outlays for fiscal year 2003.
                    ``(ii) Limitation.--An adjustment may only be made 
                under this subparagraph if the bill or joint resolution 
                establishing the obligation limitation provides that 
                the obligation limitation is made available solely for 
                programs, projects, or activities as distributed under 
                section 1102 of the Transportation Equity Act for the 
                21st Century.''.
    (d) Expiration.--Section 275(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by striking ``2002'' 
and inserting ``2007''.

Summary: Congressional Act to Prioritize Spending - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to extend the discretionary spending caps through FY 2007, earmarking funds for the defense category.Requires an adjustment for FY 2003 if new budget authority for the Department of Defense to prosecute the war on terrorism is enacted and such funds are not designated as an emergency requirement.Provides for adjustments for FY 2003 though FY 2007 for new budget authority for grants to States under part B of the Individuals with Disabilities Education Act if certain budget thresholds are met or exceeded.Provides for adjustments if Federal agencies are charged for and receive new budget authority to implement the accrual accounting of the full cost of Federal retirement and health benefits.Provides for adjustments for FY 2003 through FY 2007 if the Higher Education Act is amended to make student aid administration subject to annual appropriations.Provides for an adjustment to the highway category for FY 2003 if a specified obligation limit is exceeded, subject to specified limitations.Extends the Balanced Budget and Emergency Deficit Control Act of 1985 through FY 2007 (currently set to expire after FY 2002).