To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to establish a sequestration to reduce all nonexempt programs, projects, and activities by 2 percent each fiscal year in which the Federal budget is in deficit, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``STRONG Budget Act of 2010''.

SEC. 2. SEQUESTRATION TO ACHIEVE A BALANCED FEDERAL BUDGET.

    (a) Sequestration To Achieve a Balanced Federal Budget.--Part C of 
the Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended by adding after section 253 the following new section:

``SEC. 253A. SEQUESTRATION TO ACHIEVE A BALANCED FEDERAL BUDGET.

    ``(a) Sequestration.--Notwithstanding sections 255 and 256, within 
15 days after Congress adjourns to end a session, and on the same day 
as sequestration (if any) under section 5 of the Statutory Pay-As-You-
Go Act of 2010, but after any sequestration required by that section, 
there shall be a sequestration equivalent to 2 percent of the budget 
baseline for the fiscal year beginning on October 1 of the calendar 
year during which such sequestration occurs.
    ``(b) Applicability.--
            ``(1) In general.--Except as provided by paragraph (2), 
        each account of the United States shall be reduced by a dollar 
        amount calculated by multiplying the level of budgetary 
        resources in that account at that time by the uniform 
        percentage necessary to carry out subsection (a). All 
        obligational authority reduced under this section shall be done 
        in a manner that makes such reductions permanent.
            ``(2) Exempt accounts.--(A) No order issued to carry out 
        this section may--
                    ``(i) reduce benefits payable under the old-age, 
                survivors, and disability insurance program established 
                under title II of the Social Security Act (42 U.S.C. 
                401 et seq.), and benefits payable under section 
                231b(a), 231b(f)(2), 231c(a), and 231c(f) of title 45, 
                United States Code, shall be exempt from reduction 
                under any order issued under this part;
                    ``(ii) reduce benefits payable under any program 
                administered by the Department of Veterans Affairs or 
                Special Benefits for Certain World War II Veterans (28-
                0401-0-1-701);
                    ``(iii) reduce benefits payable under part A of the 
                Social Security Act (42 U.S.C. 1395c et seq.) (relating 
                to hospital insurance benefits for the aged and 
                disabled); or
                    ``(iv) reduce payments for net interest (all of 
                major functional category 900).
            ``(B) The following Federal retirement and disability 
        accounts and activities shall be exempt from reduction under 
        any order issued to carry out this section:
                    ``Black Lung Disability Trust Fund (20-8144-0-7-
                601).
                    ``Central Intelligence Agency Retirement and 
                Disability System Fund (56-3400-0-1-054).
                    ``Civil Service Retirement and Disability Fund (24-
                8135-0-7-602).
                    ``Comptrollers general retirement system (05-0107-
                0-1-801).
                    ``Contributions to U.S. Park Police annuity 
                benefits, Other Permanent Appropriations (14-9924-0-2-
                303).
                    ``Court of Appeals for Veterans Claims Retirement 
                Fund (95-8290-0-7-705).
                    ``Department of Defense Medicare-Eligible Retiree 
                Health Care Fund (97-5472-0-2-551).
                    ``District of Columbia Federal Pension Fund (20-
                5511-0-2-601).
                    ``District of Columbia Judicial Retirement and 
                Survivors Annuity Fund (20-8212-0-7-602).
                    ``Energy Employees Occupational Illness 
                Compensation Fund (16-1523-0-1-053).
                    ``Foreign National Employees Separation Pay (97-
                8165-0-7-051).
                    ``Foreign Service National Defined Contributions 
                Retirement Fund (19-5497-0-2-602).
                    ``Foreign Service National Separation Liability 
                Trust Fund (19-8340-0-7-602).
                    ``Foreign Service Retirement and Disability Fund 
                (19-8186-0-7-602).
                    ``Government Payment for Annuitants, Employees 
                Health Benefits (24-0206-0-1-551).
                    ``Government Payment for Annuitants, Employee Life 
                Insurance (24-0500-0-1-602).
                    ``Judicial Officers' Retirement Fund (10-8122-0-7-
                602).
                    ``Judicial Survivors' Annuities Fund (10-8110-0-7-
                602).
                    ``Military Retirement Fund (97-8097-0-7-602).
                    ``National Railroad Retirement Investment Trust 
                (60-8118-0-7-601).
                    ``National Oceanic and Atmospheric Administration 
                retirement (13-1450-0-1-306).
                    ``Pensions for former Presidents (47-0105-0-1-802).
                    ``Postal Service Retiree Health Benefits Fund (24-
                5391-0-2-551).
                    ``Public Safety Officer Benefits (15-0403-0-1-754).
                    ``Rail Industry Pension Fund (60-8011-0-7-601).
                    ``Retired Pay, Coast Guard (70-0602-0-1-403).
                    ``Retirement Pay and Medical Benefits for 
                Commissioned Officers, Public Health Service (75-0379-
                0-1-551).
                    ``Special Benefits for Disabled Coal Miners (16-
                0169-0-1-601).
                    ``Special Benefits, Federal Employees' Compensation 
                Act (16-1521-0-1-600).
                    ``Special Workers Compensation Expenses (16-9971-0-
                7-601).
                    ``Tax Court Judges Survivors Annuity Fund (23-8115-
                0-7-602).
                    ``United States Court of Federal Claims Judges' 
                Retirement Fund (10-8124-0-7-602).
                    ``United States Secret Service, DC Annuity (70-
                0400-0-1-751).
                    ``Voluntary Separation Incentive Fund (97-8335-0-7-
                051).
    ``(c) Sequestration Report.--Not later than 14 days (excluding 
weekends and holidays) after Congress adjourns to end a session, OMB 
shall make publicly available and cause to be printed in the Federal 
Register an annual deficit reduction report. The report shall include 
the amount of reductions required under section 253A and the deficit 
remaining after those reductions have been made, and the sequestration 
percentage necessary to achieve the required reduction in accounts 
under section 253A(b). The report shall also include a determination of 
whether the budget of the Government is in deficit.
    ``(d) Sequestration Order.--If the annual report issued at the end 
of a session of Congress under subsection (c) requires a sequestration, 
OMB shall prepare and the President shall issue and include in that 
report a sequestration order that, upon issuance, shall reduce all 
nonexempt accounts by enough to eliminate the deficit, but no such 
reduction shall exceed two percent.
    ``(e) Suspension of Sequestration Procedures.--Upon a determination 
by OMB that the budget of the Government is not in deficit, the 
subsequent issuance of any sequestration report or sequestration order 
is precluded and this section is suspended.
    ``(f) Restoration of Sequestration Procedures.--Effective with 
regard to the first fiscal year beginning after OMB determines that the 
budget of the Government is in deficit, the provisions of subsection 
(e) are no longer effective and this section is no longer suspended.''.
    (b) Effective Date.--Notwithstanding section 275(b) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, the expiration date 
set forth in that section shall not apply to the amendment made by 
subsection (a).

SEC. 3. PASSAGE OF EXEMPTIONS FROM SEQUESTRATIONS TO ACHIEVE A BALANCED 
              BUDGET.

    Rule XXI of the Rules of the House of Representatives is amended by 
adding at the end the following new clause:
`` Passage of exemptions from sequestrations to achieve a balanced 
              budget
    ``11. A bill or joint resolution, amendment, or conference report 
carrying an additional exemption to section 253A of the Balanced Budget 
and Emergency Deficit Control Act of 1985 may not be considered as 
passed or agreed to unless so determined by a vote of not less than 
three-fifths of the Members voting, a quorum being present.''.

Summary: STRONG Budget Act of 2010 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to require a second, general sequestration within 15 days after the end of any session of Congress if, first, a particular sequestration occurs at that time under the Statutory Pay-As-You-Go Act of 2010. Requires the general sequestration to equal 2% of the budget baseline for the fiscal year beginning on October 1 of the calendar year during which such sequestration occurs.

Prohibits such sequestration order from reducing: (1) benefits payable under title II (Old Age, Survivors, and Disability Insurance) (OASDI) of the Social Security Act (SSA); (2) annuities payable to certain employees under the Railroad Retirement Act of 1974; (3) benefits payable under any program administered by the Department of Veterans Affairs (VA) or Special Benefits for Certain World War II Veterans (28-0401-0-1-701); (4) benefits payable under SSA title IV part A (Temporary Assistance for Needy Families) (TANF) relating to hospital insurance benefits for the aged and disabled; (5) payments for net interest (all of major functional category 900); and (6) other specified federal retirement and disability accounts.

Requires the Office of Management and Budget (OMB), within 14 days after the end of a session, to issue an annual deficit reduction report and, if the report requires a sequestration, to prepare and the President to issue a sequestration order reducing nonexempt accounts by enough to eliminate the deficit. Prohibits such reduction, however, from exceeding 2% of the total amount of such nonexempt accounts.

Provides for: (1) suspension of such sequestration procedures if OMB determines that the federal budget is not in deficit; and (2) restoration of such procedures in the first fiscal year after OMB determines there is a deficit.



Amends Rule XXI (Restrictions on Certain Bills) of the Rules of the House of Representatives to prohibit legislation carrying an additional exemption to sequestrations under the Gramm-Rudman-Hollings Act (and this Act) from being considered as passed or agreed to unless by a vote of at least three-fifths of the Members.