Source: https://budgetcounsel.com/laws-and-rules/balanced-budget-and-emergency-deficit-control-act-of-1985/%C2%A7203-section-251a-enforcement-of-budget-goal/
Timestamp: 2019-04-19 08:46:15+00:00

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§203. Section 251A. Enforcement of Budget Goal.
SEC. 251A. ENFORCEMENT OF BUDGET GOAL.
(E) for fiscal year 2013, reducing the amount calculated under subparagraphs (A) through (D) by $24,000,000,000.
(2) Allocation to functions.—On March 1, 2013, for fiscal year 2013, and in its sequestration preview report for fiscal years 2014 through 2021 pursuant to section 254(c), OMB shall allocate half of the total reduction calculated pursuant to paragraph (1) for that year to discretionary appropriations and direct spending accounts within function 050 (defense function) and half to accounts in all other functions (nondefense functions).
(iii) dividing by the sum of the discretionary spending limit for the security category and OMB’s baseline estimate of nonexempt outlays for direct spending programs within the defense function for that year.
(B) Direct spending.—OMB shall calculate the reduction to direct spending by taking the total reduction for the defense function required for that year under paragraph (2) and subtracting the discretionary reduction calculated pursuant to subparagraph (A).
(iii) dividing by the sum of the discretionary spending limit for the revised nonsecurity category and OMB’s baseline estimate of nonexempt outlays for direct spending programs in nondefense functions for that year.
(B) Direct spending.—OMB shall calculate the reduction to direct spending programs by taking the total reduction for nondefense functions required for that year under paragraph (2) and subtracting the discretionary reduction calculated pursuant to subparagraph (A).
(ii) with respect to the second 6 months in which such order is so effective for such fiscal year, the payment reduction shall be 1.11 percent.
(ii) for the revised nonsecurity category, an amount equal to the nondefense function discretionary reduction calculated pursuant to paragraph (4).
(ii) for the revised nonsecurity category by the amount of the nondefense function discretionary reduction calculated pursuant to paragraph (4).
(6) Implementing direct spending reductions.—(A) On the date specified in paragraph (2) during each applicable year, OMB shall prepare and the President shall order a sequestration, effective upon issuance, of nonexempt direct spending to achieve the direct spending reduction calculated pursuant to paragraphs (3) and (4). When implementing the sequestration of direct spending pursuant to this paragraph, OMB shall follow the procedures specified in section 6 of the Statutory Pay-As-You-Go Act of 2010, the exemptions specified in section 255, and the special rules specified in section 256, except that the percentage reduction for the Medicare programs specified in section 256(d) shall not be more than 2 percent for a fiscal year.
(ii) the percentage reduction for nonexempt direct spending for nondefense functions is the same percent as the percentage reduction for nonexempt direct spending for nondefense functions for fiscal year 2021 calculated under paragraph (4)(B).
(ii) with respect to the second 6 months in which such order is so effective for such fiscal year, the payment reduction shall be 0.0 percent.
(7) Adjustment for medicare.—If the percentage reduction for the Medicare programs would exceed 2 percent for a fiscal year in the absence of paragraph (6), OMB shall increase the reduction for all other discretionary appropriations and direct spending under paragraph (4) by a uniform percentage to a level sufficient to achieve the reduction required by paragraph (4) in the non-defense function.
(8) Implementation of reductions.—Any reductions imposed under this section shall be implemented in accordance with section 256(k).
(9) Report.—On the dates specified in paragraph (2), OMB shall submit a report to Congress containing information about the calculations required under this section, the adjusted discretionary spending limits, a listing of the reductions required for each nonexempt direct spending account, and any other data and explanations that enhance public understanding of this title and actions taken under it.
(10) Implementing direct spending reductions for fiscal years 2014 and 2015.—(A) OMB shall make the calculations necessary to implement the direct spending reductions calculated pursuant to paragraphs (3) and (4) without regard to the amendment made to section 251(c) revising the discretionary spending limits for fiscal years 2014 and 2015 by the Bipartisan Budget Act of 2013.
(B) Paragraph (5)(B) shall not be implemented for fiscal years 2014 and 2015.
(11) Implementing direct spending reductions for fiscal years 2016 and 2017.—(A) OMB shall make the calculations necessary to implement the direct spending reductions calculated pursuant to paragraphs (3) and (4) without regard to the amendment made to section 251(c) of this title revising the discretionary spending limits for fiscal years 2016 and 2017 by the Bipartisan Budget Act of 2015.
(B) Paragraph (5)(B) shall not be implemented for fiscal years 2016 and 2017.
(12) Implementing direct spending reductions for fiscal years 2018 and 2019.—(A) OMB shall make the calculations necessary to implement the direct spending reductions calculated pursuant to paragraphs (3) and (4) without regard to the amendment made to section 251(c) revising the discretionary spending limits for fiscal years 2018 and 2019 by the Bipartisan Budget Act of 2018.
(B) Paragraph (5)(B) shall not be implemented for fiscal years 2018 and 2019.
This section is classified to the U.S. Code at 2 U.S.C. 901A. A previous section 251A (BBEDCA) was also codified as section 901A of title 2, but was repealed by the Budget Enforcement Act of 1997 (Pub. L. 105-33) after its purpose as the Violent Crime Reduction Trust Fund had been served.
 The term “budget goal” means the amount of deficit reduction that the Budget Control Act of 2011 (Pub. L. 112-25) was to achieve the period of years 2012 through 2021. This budgetary effect was to be achieved by (1) statutory discretionary spending limits lasting 10 years beginning in fiscal year 2012; and (2) an additional $1.2 trillion by either future enacted legislation, or if that did not occur (which it did not) automatic procedures for the nine-year period beginning on January 2, 2013. See this BCA Report prepared by the Congressional Research Service for more information.
 Under section 254 of BBEDCA, a sequestration preview report is required to be submitted each year. In this report, OMB annually adjusts the discretionary spending limits. Fiscal years 2017 through 2021 are set in reports for those years when they are submitted. The “OMB Sequestration Preview Report to the President and Congress for Fiscal Year 2016”, sets fiscal year 2016 limits. These adjustments before subsequent adjustments that take place under section 251(b) of BBEDCA. See supra at §202.
 The Joint Select Committee on Deficit Reduction did not report a bill, and hence nothing was enacted: This amount is zero.
 Because the amount of $1.2 trillion is not reduced under subparagraph (B), the 18 percent reduction is applied against the total amount: $216 billion for a net amount of $984 billion over the fiscal year 2013-2021 period.
 Dividing $984 billion by nine equals $109.3 billion per year. See the “OMB – Report Pursuant to the Sequestration Transparency Act of 2012 (P.L. 112–155) September 2012”, page 5, Table 1.
 American Taxpayer Relief Act of 2012 (P.L. 112–240) added subparagraph (E) reducing the FY2013 sequestration by $24 billion to $85 billion.
 Section 6 of the Statutory Pay-As-You-Go Act of 2010 directs OMB how to implement a direct spending sequester. A sequester under S-Paygo is distinct from a sequester under this section, and might both be necessary to be implemented. section 251A requires the President to order a sequester when the Sequestration Preview Report is transmitted to Congress while an S-Paygo sequester, if necessary, occurs within 15 days after the end of a session of Congress when the Final Sequestration Report is transmitted.
 Section 256 of the Balanced Budget and Emergency Deficit Control Act of 1985 (see infra at §208) specifies that, when implementing a direct spending sequestration pursuant to a Final Sequestration Report order required under section 254 of that Act (see infra at §206), there is a 4 percent reduction in the Medicare program. The direct spending sequestration ordered pursuant to section 251A as devised by the Budget Control Act of 2011 is included in the Sequestration Preview Report of section 254. This is distinct from most other sequesters which depend on the “Sequestration Final Report” which is transmitted by the Office of Management and Budget within fifteen days after the date of the end of the session of Congress. The direct spending sequestration implementation is distinct from the discretionary spending sequestration in that the latter occurred through the reduction in the spending limits in section 251 while the former occurs on an annual basis and will continue through fiscal year 2024. The last spending limit on discretionary spending is set for fiscal year 2021. See supra at §202.
 The Protecting Access to Medicare Act of 2014 (Pub. L. 113–93) added subparagraph (D).This amendment changed how the automatic sequestration under this section is applied. In doing so, a greater amount of outlay reduction is generated in fiscal year 2024 instead of fiscal year 2025, as would occur without this language. This timing shift generated greater savings within the applicable budget window causing the appearance of compliance.
 Fiscal years 2014 and 2015 were exempted from sequestration under this paragraph,. Included in the Bipartisan Budget Act of 2013 (P.L. 113-67), this paragraph preserved the calculation of the direct spending sequestration while providing the exemption for these two fiscal years.
 The Budget Control Act of 2011 requires the discretionary spending limits to be reduced from the level at which they were originally set in order to help achieve the deficit reduction goal of $1.2 trillion over fiscal years 2012 through 2021. Since the spending limits have been reset at a new level in subsection (a) of this section, the reduction is deactivated. This follows both the BBA 2013 and the BBA 2015.
By the authority vested in me as President by the laws of the United States of America, and in accordance with section 251A of the Balanced Budget and Emergency Deficit Control Act (the “Act”), as amended, 2 U.S.C. 901a, I hereby order that, on October 1, 2018, direct spending budgetary resources for fiscal year 2019 in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget in its report to the Congress of February 12, 2018.
All sequestrations shall be made in strict accordance with the requirements of section 251A of the Act and the specifications of the Office of Management and Budget’s report of February 12, 2018, prepared pursuant to section 251A(9) of the Act.
2018 – Order of President of the United States, dated May 23, 2017, 82 F.R. 24209.
2017 – Order of President of the United States, dated Feb. 9, 2016, 81 F.R. 7693.
2016 – Order of President of the United States, dated Feb. 2, 2015, 80 F.R. 6645.
2015 – Order of President of the United States, dated Mar. 10, 2014, 79 F.R. 14365.
2014 – Order of President of the United States, dated Apr. 10, 2013, 78 F.R. 22409.
2013 – Order of President of the United States, dated Mar. 1, 2013, 78 F.R. 14633.
The Budget Control Act of 2011 (Pub. L. 112–25, title III, §302(a), Aug. 2, 2011, 125 Stat. 256) added section 251A to the Balanced Budget and Emergency Deficit Control Act of 1985 (Pub. L. 99-177, title II, §251A) in the 1st Session of the 112th Congress.
The American Taxpayer Relief Act of 2012 (Pub. L. 112–240, title IX, §901(a), (c), Jan. 2, 2013, 126 Stat. 2370) amended the section 2nd Session of the 112th Congress.
Armed Forces COLA Reform Repeal from the BBA 2013 (Pub. L. 113–82, §1, Feb. 15, 2014, 128 Stat. 1009); this Act repealed spending reduction originally included in the BBA 2013, offset in this section by extending the direct spending sequester through fiscal year 2024.
Protecting Access to Medicare Act of 2014 (Pub. L. 113–93, title II, §222, Apr. 1, 2014, 128 Stat. 1077); this Act used a timing shift to accelerate existing law direct spending reductions for fiscal year 2014 by changing the date as to how they were applied.
Bipartisan Budget Act of 2015 (Pub. L. 114–74, title I, §101(a), title VIII, §815, Nov. 2, 2015, 129 Stat. 585) in the 114th Congress repeated the amendments from the BBA 2013, extending direct spending sequesters through fiscal year 2025.
Bipartisan Budget Act of 2018, Pub. L. 115-123; 132 Stat. 64; February 9, 2018; H.R. 1892 (115th Congress) repeated the amending procedure of the BBA 2015 to the BBA 2013, extending direct spending sequesters through fiscal year 2027.
Section 401(b)(3)(B)(i)(II) of the Budget Control Act of 2011, referred to in paragraph (1)(B), is section 401(b)(3)(B)(i)(II) of title IV of Pub. L. 112–25.
This title, referred to in paragraph (9), means title II (§200 et seq.) of Pub. L. 99–177, Dec. 12, 1985, 99 Stat. 1038 , known as the Balanced Budget and Emergency Deficit Control Act of 1985.
The Bipartisan Budget Act of 2013, referred to in paragraph (10)(A), is div. A of Pub. L. 113–67, Dec. 26, 2013, 127 Stat. 1165 .
A prior section 901a, Pub. L. 99–177, title II, §251A, as added Pub. L. 103–322, title XXXI, §310001(g)(1), Sept. 13, 1994, 108 Stat. 2104 , related to sequestration with respect to Violent Crime Reduction Trust Fund, prior to repeal by section 10204 of the Budget Enforcement Act of 1997 (Pub. L. 105–33, title X, §10204(a)(1), Aug. 5, 1997, 111 Stat. 702 .
Pub. L. 114–74, §101(b)(1); the Bipartisan Budget Act of 2015 (BBA 2015) substituted “paragraphs (10) and (11)” for “paragraph (10)”.
Pub. L. 114–74, §101(c)(1) (BBA 2015), in introductory provisions, substituted “for fiscal year 2024, and for fiscal year 2025” for “and for fiscal year 2024”.
Pub. L. 114–74, §101(b)(2) (BBA 2015) added paragraph (11).
Pub. L. 113–82 (Armed Forces COLA Reform Repeal from the BBA 2013) substituted “, for fiscal year 2023, and for fiscal year 2024” for “and for fiscal year 2023”.
Pub. L. 113–93, § 222 (Protecting Access to Medicare Act of 2014) added subparagraph (D).
Pub. L. 113–67, §101(d)(2)(A), in introductory provisions substituted “Discretionary appropriations and direct spending accounts shall be reduced in accordance with this section as follows:” for “Unless a joint committee46 bill achieving an amount greater than $1,200,000,000,000 in deficit reduction as provided in section 401(b)(3)(B)(i)(II) of the Budget Control Act of 201147 is enacted by January 15, 2012, the discretionary spending limits listed in sec- tion 251(c)48 shall be revised, and discretionary appropriations and direct spending shall be reduced, as follows:”.
Pub. L. 113–67, §101(d)(2)(B), (C), redesignated par.(3) as (1) and struck out former par. (1) which defined “revised security category” as discretionary appropriations in budget function 050 and “revised nonsecurity category” as discretionary appropriations other than in budget function 050.
Pub. L. 113–67, §101(d)(2)(B)–(D), redesignated par. (4) as (2), substituted “paragraph (1)” for “paragraph (3)”, and struck out former par. (2) which revised discretionary spending limits under section 901(c) of this title for fiscal years 2013 through 2021.
Pub. L. 113–67, §101(d)(2)(C), (E), redesignated paragraph (5) as paragraph (3) and substituted “paragraph (2)” for “paragraph (4)” in two places. Former paragraph (3) was redesignated paragraph (1).
Pub. L. 112–240, §901(a), added subparagraph (E).
Pub. L. 113–67, §101(d)(2)(C), (F), redesignated par. (6) as (4) and substituted “paragraph (2)” for “paragraph (4)” in two places. Former paragraph (4) was redesignated as paragraph (2).
Pub. L. 112–240, §901(c)(1), substituted “March 1, 2013” for “January 2, 2013”.
Pub. L. 113–67, §101(d)(2)(C), (G), redesignated par. (7) as (5) and substituted “paragraph (3)” for “paragraph (5)” in two places and “paragraph (4)” for “paragraph (6)” in two places. Former par. (5) redesignated (3).
Pub. L. 113–67, §101(b)(2), substituted “Except as provided by paragraph (10), on” for “On” in introductory provisions.
Pub. L. 113–67, §101(d)(2)(C), (H), redesignated paragraph (8) as paragraph (6) and, in subparagraph (A), substituted “paragraph (2)” for “paragraph (4)” and “paragraphs (3) and (4)” for “paragraphs (5) and (6)”. Former paragraph (6) was redesignated as paragraph (4).
Pub. L. 113–67, §101(c), designated existing provisions as subparagraph (A) and added subparagraph (B).
Pub. L. 113–67, §1205, added subparagraph (C).
Pub. L. 113–67, §101(d)(2)(C), (I), redesignated paragraph (9) as paragraph (7), substituted “paragraph (6)” for “paragraph (8)”, and substituted “paragraph (4)” for “paragraph (6)” in two places. Former paragraph (7) was redesignated as paragraph (5).
Pub. L. 112–240, §901(c)(2), substituted “March 1, 2013” for “January 2, 2013” in introductory provisions.
Pub. L. 113–67, §101(d)(2)(C), redesignated paragraph (10) as (8). Former paragraph (8) was redesignated as paragraph (6).
Pub. L. 113–67, §101(d)(2)(C), (J) redesignated paragraph (11) as paragraph (9) and substituted “paragraph (2)” for “paragraph (4)”. Former paragraph (9) was redesignated as paragraph (7).
Pub. L. 113–67, §101(b)(1), added paragraph (10). Former paragraph (10) was redesignated as paragraph (8).
Pub. L. 113–67, §101(d)(2)(C), redesignated paragraph (11) as paragraph (9).
By the authority vested in me as President by the laws of the United States of America, and in accordance with section 251A of the Balanced Budget and Emergency Deficit Control Act (the “Act”), as amended, 2 U.S.C. 901a, I hereby order that, on October 1, 2015, direct spending budgetary resources for fiscal year 2016 in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget in its report to the Congress of February 2, 2015.
All sequestrations shall be made in strict accordance with the requirements of section 251A of the Act and the specifications of the Office of Management and Budget’s report of February 2, 2015, prepared pursuant to section 251A(9) of the Act.
Order of President of the United States, dated Mar. 10, 2014, 79 F.R. 14365.
By the authority vested in me as President by the laws of the United States of America, and in accordance with section 251A of the Balanced Budget and Emergency Deficit Control Act (the ‘‘Act’’), as amended, 2 U.S.C. 901a, I hereby order that, on October 1, 2014, direct spending budgetary resources for fiscal year 2015 in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget in its report to the Congress of March 10, 2014.
All sequestrations shall be made in strict accordance with the requirements of section 251A of the Act and the specifications of the Office of Management and Budget’s report of March 10, 2014, prepared pursuant to section 251A(9) of the Act.
Order of President of the United States, dated Apr. 10, 2013, 78 F.R. 22409.
By the authority vested in me as President by the laws of the United States of America, and in accordance with section 251A of the Balanced Budget and Emergency Deficit Control Act (the ‘‘Act’’), as amended, 2 U.S.C. 901a, I hereby order that, on October 1, 2013, direct spending budgetary resources for fiscal year 2014 in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget in its report to the Congress of April 10, 2013.
All sequestrations shall be made in strict accordance with the requirements of section 251A of the Act and the specifications of the Office of Management and Budget’s report of April 10, 2013, prepared pursuant to section 251A(11) of the Act.
Order of President of the United States, dated Mar. 1, 2013, 78 F.R. 14633.
By the authority vested in me as President by the laws of the United States of America, and in accordance with section 251A of the Balanced Budget and Emergency Deficit Control Act, as amended (the “Act”), 2 U.S.C. 901a, I hereby order that budgetary resources in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget in its report to the Congress of March 1, 2013.
Pursuant to sections 250(c)(6), 251A, and 255(e) of the Act, budgetary resources subject to sequestration shall be new budget authority, unobligated balances of defense function accounts carried over from prior fiscal years, direct spending authority, and obligation limitations.
All sequestrations shall be made in strict accordance with the requirements of section 251A of the Act and the specifications of the Office of Management and Budget’s report of March 1, 2013, prepared pursuant to section 251A(11) of the Act.

References: §202
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 §251
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 §10204
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 §1205
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