Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987
PL 100-119 (H.J.Res.324), enacted 09/29/1987

101 STAT. 754 
PUBLIC LAW 100-119—SEPT. 29, 1987 
Sept. 29, 1987 
[H.J. Res. 324] 
Public Law 100-119 
100th Congress 
Joint Resolution 
Increasing the statutory limit on the public debt. 
Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled, That subsection (b) of 
section 3101 of title 31, United States Code, is amended by striking 
out the dollar limitation contained in such subsection, and inserting 
in lieu thereof "$2,800,000,000,000". 
Balanced Budget 
and Emergency 
Deficit 
Control 
Reaffirmation 
Act 
of 1987. 
2 u s e 901 note. 
2 u s e 901. 
TITLE I—DEFICIT REDUCTION 
PROCEDURES 
SEC. 101. REFERENCES IN TITLE; SHORT TITLE. 
(a) REFERENCES IN TITLE.—Except as otherwise specifically pro-
vided, whenever in this title an amendment is expressed in terms of 
an amendment to or repeal of a section or other provision, the 
reference shall be considered to be made to that section or other 
provision of the Balanced Budget and Emergency Deficit Control 
Act of 1985. 
(h) SHORT TITLE.—This title may be cited as the "Balanced Budget 
and Emergency Deficit Control Reaffirmation Act of 1987". 
SEC. 102. AUTOMATIC TRIGGER FOR FISCAL YEARS 1988 THROUGH 1993; 
0MB AND CBO REPORTS; PRESIDENTIAL ORDER; COMPUTA-
TION OF BUDGET BASE; SEQUESTRATION RULES FOR FISCAL 
YEARS 1988 THROUGH 1993. 
(a) IN GENERAL. 
read as follows: 
-Sections 251 and 252 of the Act are amended to 
"SEC. 251. REPORTING OF EXCESS DEFICITS. 
"(a) INITIAL ESTIMATES, DETERMINATIONS, AND REPORTS BY O M B 
AND CBO.— 
"(1) ESTIMATES AND DETERMINATIONS.—The Director of the 
Office of Management and Budget and the Director of the 
Congressional Budget Office (in this part referred to as the 
'Directors') shall with respect to each fiscal year and in 
accordance with the requirements, specifications, definitions, 
and calculations required by this part— 
"(A) estimate the budget levels of total revenues and 
outlays that may be anticipated for such fiscal year as of 
August 15 of the calendar year in which such fiscal year 
begins (or as of October 10, 1987, in the case of fiscal year 
1988), 
"(B) determine whether the projected deficit for such 
fiscal year will exceed the maximum deficit amount for 
such fiscal year and whether such deficit excess will be 
greater than $10,000,000,000 (zero in the case of fiscal year 
1993), 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 755 
"(C) estimate the amount of net deficit reduction in the 
budget baseline that has occurred since January 1 of the 
calendar year in which such fiscal year begins, and 
"(D) estimate the rate of real economic growth that will 
occur during such fiscal year, the rate of real economic 
growth that will occur during each quarter of such fiscal 
year, and the rate of real economic growth that will have 
occurred during each of the last two quarters of the preced-
ing fiscal year. 
"(2) REPORTS.—(A) Based on the estimates and determinations 
required in paragraph (1) and in accordance with the require-
ments, specifications, definitions, and calculations required by 
this part, the Director of the Congressional Budget Office (in 
this part referred to as the 'Director of CBO') shall issue a 
report to the Director of the Office of Management and Budget 
(in this part referred to as the 'Director of 0MB') and to the 
Congress on August 20 of the calendar year in which the fiscal 
year begins (or on October 15, 1987, in the CEise of fiscal year 
1988) estimating the budget baseline levels of total revenues and 
total outlays for such fiscal year, identifying the amount of any 
deficit excess for such fiscal year, stating whether such excess is 
greater than $10,000,000,000 (zero in the case of fiscal year 
1993), estimating the amount of net deficit reduction in the 
budget baseline that has occurred since January 1 of the cal-
endar year in which such fiscal year begins, specifying the 
estimated rate of real economic growth for such fiscal year, for 
each quarter of such fiscal year, and for each of the last two 
quarters of the preceding fiscal year, indicating whether the 
estimate includes two or more consecutive quarters of negative 
real economic growth, estimating the aggregate amount of re-
quired outlay reductions, and specifying, by account for non-
defense programs and by account for defense programs the 
budget baseline from which reductions are taken and the 
amounts and percentages by which such accounts must be 
reduced during such fiscal year in order to make the reductions 
required by this part. 
"(B) The Director of 0MB shall issue a report to the President 
and the Congress on August 25 of the calendar year in which 
the fiscal year begins (or on October 20, 1987, in the case of the 
fiscal year 1988) containing the same information required in 
subparagraph (A) and the information required in clauses (i) 
and (ii) for such fiscal year as follows: 
"(i) The Director of 0MB shall identify and explain any 
differences between the amount set forth in such report and 
the corresponding amount set forth in the report of the 
Director of CBO under subparagraph (A) with respect to— 
"(I) the aggregate amount of required outlay reduc-
tions; 
"(II) the aggregate amount of resources to be seques-
tered from defense accounts (by type of sequesterable 
resource) and from non-defense accounts (by type of 
sequesterable resource); and 
"(III) the amount of sequesterable resources for any 
budget account that is to be reduced if such difference 
is greater than $5,000,000. 
"(ii) The Director of 0MB shall calculate and set forth for 
defense programs (by type of sequesterable resource) and 
101 STAT. 756 
PUBLIC LAW 100-119—SEPT. 29, 1987 
f ' 
for non-defense programs (by type of sequesterable re-
source), the amount of reductions in budgetary resources 
that would be required by this part using his estimate of 
flr» 
the aggregate amount of required outlay reductions and 
t 
applying the technical assumptions (including outlay rates) 
1 
and methodologies used in the report of the Director of CBO 
i 
under subparagraph (A). The Director of 0MB shall iden-
-' 
tify and explain any differences between these estimates 
and such corresponding amounts set forth under clause (i). 
an":^ 
"(iii) In the report for a fiscal year (except fiscal year 
1988) issued under this subparagraph, the Director of 0MB 
shall assume that the aggregate outlay rate for defense 
' 
programs covered by paragraph (6)(C), calculated using data 
on sequesterable resources and account outlay rates ap-
* 
plicable to such fiscal year, shall not differ by more than 
•' 
one-half of 1 percent from such aggregate outlay rate cal-
* 
culated using the same data on sequesterable resources but 
* 
using account outlay rates calculated arithmetically using 
• 
the applicable sequesterable resources and outlays con-
]" 
tained in the report submitted under this Act for the 
- 
preceding fiscal year as proposed by the Director of 0MB. 
1- 
For purposes of this subparagraph, an aggregate outlay rate 
7 
shall be the average of account outlay rates (expressed as a 
*' 
percentage) with each account outlay rate (as defined in 
^ 
section 257(13)) given a weight that is proportional to the 
"
^ 
account's share of total sequesterable resources. The cal-
^f 
culation of the non-defense aggregate outlay rate for pro-
grams covered by paragraph (6)(C), shall be determined 
'. 
using the procedures and restrictions used for determining 
' 
the aggregate defense outlay rate. 
2 
"(iv) The report issued under this subparagraph for any 
fiscal year (except fiscal year 1988) may not assume aggre-
r 
gate outlays for the health insurance programs under title 
1 
XVIII of the Social Security Act (before taking into account 
legislation enacted or regulations prescribed after the cur-
|,J,', 
rent services budget is submitted) which deviate by more 
. 
than 1 percent from the amount of outlays estimated for 
1 
such programs in the current services budget submitted by 
„ 
the President pursuant to section 1109(a) of title 31, United 
^ 
States Code, for such fiscal year. For fiscal year 1988 the 
report issued under this subparagraph shall assume aggre-
^
: 
gate outlays for such programs (before taking into account 
I 
legislation enacted or regulations promulgated as final 
Q
^ 
after August 20, 1987) equal to the amount assumed for 
such programs by the Director of 0MB in the report 
DJii. 
submitted to the Temporary Joint Committee on Deficit 
Reduction on August 20, 1987, except that, unless necessary 
-t 
to comply with requirements provided in law, any change 
A: 
in administrative procedures that increases or decreases 
fo v;4 
the average number of days for the payment of claims 
under title XVIII of the Social Security Act, compared to 
Y 
such average in the preceding fiscal year, shall not be taken 
a 
into account for purposes of this Act. 
"(C)(i) The technical and economic assumptions used by the 
1 
Director of CBO to calculate the excess deficit shall also be used 
t 
by the Director of CBO to calculate the unachieved deficit 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 757 
reduction, required outlay reductions and the amounts and 
percentages by which budgetary resources must be reduced. 
"(ii) The technical and economic assumptions used by the 
Director of 0MB to calculate the excess deficit shall also be used 
by the Director of 0MB to calculate the required outlay reduc-
tions, the unachieved deficit reduction and the amounts and 
percentages by which budgetary resources must be reduced, 
"(iii) For fiscal year 1988, except as specified in subparagraph 
(B)(iv), the Director of 0MB shall use the same economic and 
technical assumptions (including outlay rates) that the Director 
of 0MB used in the report submitted to the Temporary Joint 
Committee on Deficit Reduction on August 20,1987. 
"(iv) For fiscal year 1989 and subsequent fiscal years, to the 
extent that the report submitted by the President for such fiscal 
year under section 1106(a) of title 31, United States Code, uses 
economic and technical assumptions (including outlay rates) 
that differ from those that will be used by the Director of 0MB 
in the report to be submitted under subparagraph (B) for such 
fiscal year, the report submitted by the President shall explain 
and identify such differences. Such report shall provide an 
estimate of the deficit excess and net deficit reduction in the 
budget baseline consistent with the estimates that will be used 
by the Director of 0MB in the report to be submitted under 
subparagraph (B) for such fiscal year. The report submitted by 
the Director of 0MB under subparagraph (B) for such fiscal 
year shall use the economic and technical assumptions that the 
report submitted by the President indicated would be used by 
such Director. 
"(3) DETERMINATION OF REDUCTIONS.— 
"(A) The aggregate amount of required outlay reductions 
for a fiscal year shall be determined as follows: 
"(i) The aggregate required outlay reductions shall 
b e -
"(I) for 
fiscal 
year 
1988, the amount 
of 
unachieved deficit reduction; 
"(II) for fiscal year 1989, zero if the deficit excess 
is equal to or less than $10,000,000,000, or if not, 
the lesser of the deficit excess or the amount of 
unachieved deficit reduction; or 
"(III) for fiscal year 1990, 1991, 1992, or 1993, 
zero if the deficit excess for such fiscal year is 
equal to or less than the amount of the margin for 
such fiscal year specified in paragraph (10) of sec-
tion 257, or if not, the amount of the deficit excess 
for such fiscal year. 
The 
unachieved 
deficit 
reduction 
shall 
be 
gns,, 
$23,000,000,000 in the case of fiscal year 1988 and 
$36,000,000,000 in the case of fiscal year 1989, minus 
the net deficit reduction in the budget baseline for such 
fiscal year, but such unachieved deficit reduction shall 
not exceed $23,000,000,000 in the case of fiscal year 
1988 or $36,000,000,000 in the case of fiscal year 1989. 
Net deficit reduction in the budget baseline for a fiscal 
year shall be the amount of the estimated deficit for 
such fiscal year based on laws enacted by, and regula-
tions promulgated as final by, the snapshot date, as 
measured using the budget baseline specified in para-
101 STAT. 758 
PUBLIC LAW 100-119—SEPT. 29, 1987 
Loans. 
graph (6), subtracted from the amount of the estimated 
deficit for such fiscal year based on laws enacted by, 
and regulations promulgated as final by, January 1 of 
the calendar year in which such fiscal year begins as 
measured by using the budget baseline specified in 
paragraph (6). Both such deficit estimates for a fiscal 
year shall be made using the same economic and tech-
nical assumptions. 
"(ii) As used in this paragraph, the term 'snapshot 
date' means— 
"(I) for fiscal year 1988, in the case of an initial 
report submitted under subsection (a), October 10, 
1987, and in the case of a final report submitted 
under subsection (c), the latest possible date before 
its submission; 
"(II) for fiscal year 1989 and subsequent fiscal 
years, in the case of an initial report submitted 
under subsection (a), August 15, and in the case of 
a final report submitted under subsection (c), the 
latest possible date before its submission, 
"(B) Subject to the exemptions, exceptions, limitations, 
special rules, and definitions set forth in this section and in 
sections 255, 256, and 257, one-half of the aggregate re-
quired outlay reductions shall be made under accounts 
within major functional category 050 (in this part referred 
to as outlays under 'defense programs'), and shall be made 
in accordance with the rules prescribed in subsection (d), 
and the other half of the aggregate required outlay reduc-
tions shall be made under other accounts of the Federal 
Government (in this part referred to as 'non-defense 
programs'). 
"(C) The amount by which outlays for automatic spending 
increases scheduled to take effect during the fiscal year are 
to be reduced shall be credited as reductions in outlays 
under non-defense programs, and the total amount of 
reductions in outlays under non-defense programs required 
under subparagraph (B) shall be reduced accordingly. 
"(D) The maximum reduction permissible for each pro-
gram to which an exception, limitation, or special rule set 
forth in subsection (c) or (f) of section 256 applies shall be 
credited as reductions in outlays under non-defense pro-
grams, and the amount of reductions in outlays under non-
defense programs shall be further reduced by the amount of 
the reduction determined with respect to each such 
program. 
"(E)(i) Sequestrations and reductions under the remain-
ing non-defense programs shall be applied on a uniform 
percentage basis so as to reduce new budget authority; new 
loan guarantee commitments or limitations; new direct 
loan obligations, commitments, or limitations; obligation 
limitations; and spending authority as defined in section 
401(c)(2) of the Congressional Budget Act of 1974 to the 
extent necessary to achieve any remaining required outlay 
reductions; except that each of the programs to which the 
special rules set forth in subsections (d) and (k) of section 
256 apply shall not be reduced by more than the percent-
ages specified in such subsections and the uniform percent-
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 759 
if^ 
age reduction applicable to all other programs under this 
clause shall be increased (if necessary) to a level sufficient 
to achieve any remaining required outlay reductions. 
"(ii) For purposes of determining reductions under clause Contracts, 
(i), any reduction in outlays of the Commodity Credit Cor-
poration under an order issued by the President under 
section 252 for a fiscal year, with respect to contracts 
entered into during that fiscal year, that will occur during 
the succeeding fiscal year, shall be credited as reductions in 
outlays for the fiscal year in which the order is issued. 
The determination of which accounts are within major func-
tional category 050 and which are not, for purposes of subpara-
graph (B), shall be made by the Directors in a manner consist-
ent with the budget submitted by the President for the fiscal 
year 1986; except that for such purposes no part of the accounts 
entitled 'Federal Emergency Management Agency, Salaries and 
expenses (58-0100-0-1-999)' and 'Federal Emergency Manage-
ment Agency, Emergency management planning and assistance 
(58-0101-0-1-999)' shall be treated as being within functional 
category 050. 
"(4) 
ADDITIONAL SPECIFICATIONS.—The reports 
submitted 
under paragraph (2) must also specify (with respect to the fiscal 
year involved)— 
"(A) the amount and percentage increase of the auto-
matic spending increase (if any) which is scheduled to take 
effect in the case of each program providing for such in-
creases, and the amount and percentage increase (if any) of 
each such increase which will take effect after reduction 
under this part; 
"(B) the amount of the savings (if any) to be achieved in 
the application of each of the special rules set forth in 
subsections (c) through (1) of section 256, along with a 
statement of (i) the new Federal matching rate resulting 
from the application of subsection (e) of that section, and (ii) 
the amount of the percentage reduction in payments to the 
States under section 204 of the Federal-State Extended 
Unemployment Compensation Act of 1970; and 
"(C)(i) for defense programs, by account, the reduction 
(stated in terms of both percentage and amount) in new 
budget authority and unobligated balances, together with 
the estimated outlay reductions resulting therefrom; and 
"(ii) for non-defense programs, by account, the reduction, 
stated in terms of both percentage and amount, in new 
budget authority; new loan guarantee commitments or 
f 
limitations; new direct loan obligations, commitments, or 
limitations; obligation limitations; and spending authority 
as defined in section 401(c)(2) of the Congressional Budget 
Act of 1974; together with the estimated outlay reductions 
resulting therefrom. 
"(5) BASIS FOR DIRECTORS' ESTIMATES, DETERMINATIONS, AND 
SPECIFICATIONS.—The estimates, determinations, and specifica-
tions of the Directors under the preceding provisions of this 
subsection and under subsection (c) shall utilize the budget 
baseline, criteria, and guidelines set forth in paragraph (6) and 
in sections 255, 256, and 257. In estimating the deficit, the 
excess deficit, and unachieved deficit reduction for an initial 
report under paragraph (2) or a final report under subsection (c). 
Defense and 
national 
security. 
Loans. 
101 STAT. 760 
PUBLIC LAW 100-119-SEPT. 29, 1987 
Taxes. 
Government 
organization 
and employees. 
Wages. 
the Directors shall use the budget baseline set forth in para-
graph (6) based on laws enacted by, and regulations promul-
gated as final by, the snapshot date applicable to such report. 
"(6) BUDGET BASELINE.—In estimating the deficit excess and 
net deficit reduction in the budget baseline and in computing 
the amounts and percentages by which accounts must be re-
duced during a fiscal year as set forth in any report required 
under this subsection for such fiscal year, the budget baseline 
shall be determined by— 
"(A) assuming (subject to subparagraph (B)) the continu-
ation of current revenue law and, in the case of spending 
authority as defined in section 401(c)(2) of the Congressional 
Budget Act of 1974, funding for current law at levels suffi-
cient to fully make all payments required under such law; 
"(B) assuming that expiring provisions of law providing 
revenues and spending authority as defined in section 
401(c)(2) of the Congressional Budget Act of 1974 do expire, 
except that excise taxes dedicated to a trust fund, and 
agricultural price support programs administered through 
the Commodity Credit Corporation are extended at current 
rates, and contract authority for transportation trust funds 
:.r. 3 
is extended at current levels; 
"(C) in the case of all accounts to which subparagraph (A) 
does not apply— 
"(i) assuming for an account (except as provided by 
clause (ii)), appropriations at the level specified in en-
acted annual appropriations or continuing appropria-
tions enacted for the entire fiscal year, and in addition, 
estimates of appropriations to cover the costs of Fed-
eral pay adjustments as set forth in subparagraph 
(D)(ii) (unless funding for such pay adjustments are 
provided for in such measure as explained in the joint 
explanatory statement of managers accompanying such 
appropriations); 
'(ii) assuming, if no annual appropriations or 
continuing appropriations for the entire fiscal year 
have been enacted for an account, subject to subpara-
graph (D)(iii), appropriations at the level provided for 
the previous fiscal year, (I) adjusted to reflect the full 
12-month costs (without absorption) of the pay adjust-
ment that occurred in such fiscal year, (II) inflated as 
specified in subparagraph (D)(i), and (III) increased to 
cover the increased costs to agencies of personnel bene-
fits (other than pay) required by law; 
"(D)(i) as required by subparagraph (C)(ii)(II), assuming 
that the inflator shall equal— 
"(I) in the case of fiscal year 1988— 
"(aa) for personnel costs, the rate of Federal pay 
adjustments for statutory pay systems and ele-
a:iA 
ments of military pay if such adjustments have 
been enacted into law or (on or after October 1 of 
the fiscal year) have been established pursuant to 
law for such fiscal year or, if not, 4.2 percent, 
multiplied by the proportion of the fiscal year for 
which the pay adjustments will be effective, multi-
: 
plied by 78 percent; and 
,{'j) itctiurjHdiia idi 
"(bb) for all other costs, 4.2 percent; 
j i
v
>
.
4 vi 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 761 
i i 
31»V« 
bSiilit.; 
'iu li 
ficuif 
"(II) in the case of fiscal year 1989 and subsequent 
fiscal years— 
"(aa) for 70 percent of personnel costs, the rate of 
Federal pay adjustments for statutory pay systems 
and elements of military pay if such adjustments 
have been enacted into law or (on or after October 
1 of the fiscal year) have been established pursuant 
to law for such fiscal year or, if not, at the inflation 
rate specified in subclause (II)(bb), multiplied by 
the proportion of the fiscal year for which the pay 
adjustments will be effective, multiplied by 78 per-
cent; and 
"(bb) for all other costs, the percentage by which 
the average of the estimated gross national product 
implicit price deflator for such fiscal year exceeds 
the average of such estimated deflator for the prior 
fiscal year (and the Director of 0MB shall use such 
percentage as estimated in the budget submitted 
by the President under section 1105(a) for such 
fiscal year, but such use shall not constrain the 
economic assumptions the Director may use under 
paragraph (2)(C)); 
"(ii) if required by subparagraph (C)(i), assuming appro-
priations for a fiscal year in an amount sufficient to— 
"(I) cover any Federal pay adjustment for statutory 
pay systems (including associated adjustments in bene-
fit costs) if such adjustments have been enacted into 
law or, on or after October 1 of the fiscal year, have 
been established pursuant to law for such fiscal year; 
"(II) cover any pay adjustments for elements of mili-
tary pay (including associated adjustments in benefit 
costs) if such adjustments are specifically enacted into 
law or occur pursuant to adjustments for statutory pay 
systems if such adjustments have been enacted into law 
or, on or after October 1 of the fiscal year, have been 
established pursuant to law; 
reduced by 22 percent; 
"(iii) assuming for the purposes of subparagraph (C)(ii) 
that the amount provided for an account for the previous 
fiscal year is the amount provided in any enacted annual 
appropriations or continuing appropriations enacted for the 
entire fiscal year, as modified by any enacted supplemental 
appropriations or rescission bills, and if a temporary 
continuing appropriation is in effect for the previous fiscal 
year, then the amount provided for such account for the 
previous fiscal year shall be assumed to be the amount that 
would have been enacted if such continuing appropriations 
were in effect for the entire fiscal year; 
"(E) assuming that medicare spending levels for inpatient 
hospital services will be based upon the regulations most 
recently issued in final form or proposed by the Health 
Care Financing Administration 
pursuant 
to sections 
1886(b)(3)(B), 1886(d)(3)(A), and 1886(e)(4) of the Social Secu-
rity Act; 
"(F) assuming that, unless otherwise required by law, 
advance deficiency payments and paid land diversion pay-
ments under the Agricultural Act of 1949 will be made in 
.aiTstfjJsV 
.8H30-J 
noTiB-i't'Uin 
Medicare. 
Real property. 
101 STAT. 762 
PUBLIC LAW 100-119—SEPT. 29, 1987 
Veterans. 
Loans. 
Federal 
Register, 
publication. 
r^m'i 
UiBH 
sv; 
accordance with applicable regulations and payment rates 
for 1987; 
"(G) assuming that the increase in revenues attributable 
to any increase in appropriations available for administra-
tion and enforcement of the Internal Revenue Code of 1986 
(over the amount actually appropriated for the previous 
fiscal year) is consistent on a proportional basis with the 
increase in revenues projected to result from the increased 
appropriations for such purposes in the budget submitted 
under section 1105(a) of title 31, United States Code, for 
• I'H 
such fiscal year; 
"(H) assuming, unless otherwise provided by law, that the 
increase for Veterans' compensaton (36-0153-0-1-701) for a 
fiscal year will be the same as that required by law for 
Veterans' pensions; 
"(I) assuming, for purposes of this paragraph and 
subparagraph (A)(i) of paragraph (3), that the sale of an 
asset or prepayment of a loan shall not alter the deficit or 
produce any net deficit reduction in the budget baseline, 
except that the budget baseline estimate shall include asset 
rib. 
sales mandated by law before September 18, 1987, and 
routine, ongoing asset sales and loan prepayments at levels 
-etc; 
consistent with agency operations in fiscal year 1986; 
"(J) assuming that deferrals proposed during the period 
beginning October 1 of such fiscal year and ending with the 
snapshot date for such fiscal year shall not be taken into 
account in determining such budget baseline; and 
"(K) assuming that the transfer of Government actions 
from one fiscal year to another fiscal year, as described in 
section 202 of the Balanced Budget and Emergency Deficit 
Control Reaffirmation Act of 1987, shall not be taken into 
account except to the extent provided in such section. 
Terms used in this paragraph shall have the meanings defined 
in sections 256 and 257. 
"(b) 
DATES FOR SUBMISSION AND PRINTING OF REPORTS.—Each 
report submitted under this section shall be submitted to the Fed-
eral Register on the day that it is issued and printed on the 
following day. If the date specified for the submission of a report by 
the Directors or its printing in the Federal Register under this 
section falls on a Sunday or legal holiday, such report shall be 
submitted or printed on the following day. 
"(c) REVISED ESTIMATES, DETERMINATIONS, AND REPORTS.— 
"(1) REPORTS BY CBO.—On November 15 of fiscal year 1988 and 
on October 10 of subsequent fiscal years, the Director of CBO 
shall issue a revised report to Congress and the Director of 
0MB— 
"(A) indicating whether and to what extent, as a result of 
laws enacted and regulations promulgated as final after 
August 15 of the calendar year in which the fiscal year 
begins (or after October 10, 1987, in the case of the fiscal 
year 1988) the aggregate amount of required outlay reduc-
i 
tions identified in the report submitted under subsection 
i. :-*f 
(a)(2)(A) has been eliminated, reduced, or increased, 
"(B) adjusting the determinations made under subsection 
(a)(2)(A) to the extent necessary, and 
"(C) specifying by programs, projects, and activities for 
Hi :x'^ 
defense accounts, the budget baseline from which reduc-
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 763 
tions are taken and the amounts and percentages by which 
such programs, projects, and activities must be reduced. 
"(2) REPORTS BY OMB.—On November 20 of fiscal year 1988 
and on October 15 of subsequent fiscal years, the Director of 
OMB shall submit to the President and the Congress a report 
revising the report issued under subsection (a)(2XB), adjusting 
the estimates, determinations, and specifications contained in 
the report and taking into account for the purposes of required 
determinations and comparisons the revised report issued by 
the Director of CBO under paragraph (1). This report shall 
contain all of the determinations and comparisons required in, 
and shall be based on the same economic and technical assump-
tions, employ the same methodologies, and utilize the same 
definition of the budget baseline and the same criteria and 
guidelines as, the report issued under subsection (a)(2)(B), and 
shall provide for the determination of reductions in the manner 
specified in subsection (a)(3). In addition, this report shall 
specify by programs, projects, and activities for defense ac-
counts, the budget baseline from which reductions are taken 
and the amounts by which such programs, projects, and activi-
ties must be reduced. 
'(d) SEQUESTRATION OF DEFENSE PROGRAMS.— 
"(1) DETERMINATION OF UNIFORM PERCENTAGE.—The total 
ioe BU i 
amount of reductions in outlays under defense programs re-
quired for a fiscal year under subsection (a)(3)(B) shall be cal-
culated as a percentage of the total amount of outlays for the 
fiscal year estimated to result from new budget authority and 
unobligated balances for defense programs. 
"(2) SEQUESTRATION OF NEW BUDGET AUTHORITY AND UNOBLI-
GATED BALANCES.— 
"(A) Sequestration to achieve the required reduction in 
outlays under defense programs shall be made by reducing 
new budget authority and unobligated balances (if any) in 
each program, project, or activity under accounts within 
defense programs by the percentage determined under 
paragraph (1), computed on the basis of the combined 
outlay rate for new budget authority and unobligated bal-
ances for such program, project, or activity determined 
under subparagraph (B). 
"(B) If the outlay rate for unobligated balances is not 
,. 
>
' 
available for any program, project, or activity, the outlay 
rate used shall be the outlay rate for new budget authority. 
"(3) 
FLEXIBILITY 
WITH 
RESPECT 
TO MILITARY 
PERSONNEL 
ACCOUNTS.— 
"(A) Notwithstanding paragraphs (1) and (2), with respect 
to a fiscal year the President may, with respect to any 
military personnel account— 
"(i) exempt any program, project, or activity within 
such account from the order; 
"(ii) provide for a lower uniform percentage to be 
applied to reduce any program, project, or activity 
within such account than would otherwise apply; or 
"(iii) take actions described in both clauses (i) and (ii). 
"(B) If the President uses the authority under subpara-
graph (A), the total amount by which outlays are not 
reduced for such fiscal year in military personnel accounts 
by reason of the use of such authority shall be determined. 
101 STAT. 764 
PUBLIC LAW 100-119—SEPT. 29, 1987 
Additional reductions in outlays under defense programs in 
such total amount shall be achieved by a uniform percent-
age sequestration of new budget authority and unobligated 
balances in each program, project, and activity within each 
account within major functional category 050 other than 
those military personnel accounts for which the authority 
f' 
provided under subparagraph (A) has been exercised, com-
' 
puted on the basis of the outlay rate for each such program, 
project, and activity determined under paragraphs (1) and 
(2). 
*
^
^ 
"(C) The President may not use the authority provided by 
subparagraph (A) unless he notifies the Congress on or 
before October 10, 1987, in the case of fiscal year 1988, or 
August 15 of the calendar year in which the fiscal year 
begins in the case of any subsequent fiscal year, of the 
manner in which such authority will be exercised. The 
Directors shall reflect the results of authority exercised 
under this paragraph in the reports required under section 
251(a)(2). 
"(e) EXCEPTION.—The preceding provisions of this section shall not 
apply if a declaration of war by the Congress is in effect. 
2 use 902. 
"SEC. 252. PRESIDENTIAL ORDER. 
; - "(a) ISSUANCE OF INITIAL ORDER.— 
"(1) IN GENERAL.—On August 25 (or October 20, 1987, in the 
case of fiscal year 1988), following the submission of a report by 
the Director of 0MB under section 251(a)(2)(B), the President, in 
strict accordance with the requirements of paragraph (2) and 
iJ 
section 251(a) (3) and (4) and subject to the exemptions, excep-
tions, limitations, special rules, and definitions set forth in 
sections 255, 256, and 257, shall make all the reductions speci-
fied in such report by issuing an order that (notwithstanding 
the Impoundment Control Act of 1974)— 
"(A) in accordance with such report, suspends the oper-
ation of each provision of Federal law that would (but for 
such order) require an automatic spending increase to take 
effect during such fiscal year in such a manner as to 
prevent such increase from taking effect, or reduce such 
increase, in accordance with such report; and 
Loans. 
'^^^: ^^ 
"(B) in accordance with such report, sequesters new 
budget authority; unobligated balances; new loan guarantee 
commitments or limitations; new direct loan obligations, 
•^""^^ 
commitments, or limitations; spending authority as defined 
in section 401(c)(2) of the Congressional Budget Act of 1974; 
t) >!.vr 
and obligation limitations— 
<
*
^
« ^'' 
"(i) for funds provided in annual appropriation Acts, 
from each affected program, project, and activity (as set 
l^>'' 
forth in the most recently enacted applicable appro-
priation Acts and accompanying committee reports for 
the program, project, or activity involved, including 
joint resolutions providing continuing appropriations 
'JO 
and committee reports accompanying Acts referred to 
t
f
^ 
in such resolutions), applying the same reduction 
fi 
percentage as the percentage by which the account 
-
=
^
s 
involved is reduced in the report submitted under sec-
i'^*^ 
tion 251(a)(2)(B) or from each affected budget account if 
.bsiiifii:?io 
the program, project, or activity is not so set forth, and 
nit 
VJl 
13C". 
mijr^no--
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 765 
P t.-r 
"(ii) for funds not provided in annual appropriation 
Acts, from each budget account activity as identified in 
the program and financing schedules contained in the 
appendix to the Budget of the United States Govern-
ment for that fiscal year, applying the same reduction 
percentage as the percentage by which the account is 
reduced in such report. 
"(2) ORDER TO BE BASED ON DIRECTOR OF OMB'S REPORT.—The 
order must provide for reductions in the manner specified in 
section 251(a)(3), must incorporate the provisions of the report 
submitted under section 251(a)(2)(B), and must be consistent 
with such report in all respects. The President may not modify 
or recalculate any of the estimates, determinations, specifica-
tions, bases, amounts, or percentages set forth in such report in 
determining the reductions to be specified in the order with 
respect to programs, projects, and activities, or with respect to 
budget activities, within an account. 
"(3) ORDER REQUIRED IF NO REDUCTIONS ARE NEEDED.—If the 
report submitted under section 251(a)(2)(B) states that no aggre-
gate outlay reductions are required for a fiscal year, the order 
issued by the President shall so state. 
"(4) EFFECT OF SEQUESTRATION UNDER INITIAL ORDER.— 
"(A) 
IN GENERAL.—Notwithstanding 
section 
257(7), 
amounts sequestered under an order issued by the Presi-
dent under paragraph (1) shall be withheld from obligation 
or expenditure pending the issuance of a final order under 
i -
^
^ subsection (b) and shall be permanently sequestered or 
reduced in accordance with such final order upon the issu-
ance of such order. 
"(B) SPECIAL RULE CONCERNING REDUCTION OF PAYMENTS 
UNDER THE MEDICARE PROGRAM.— 
"(i) IN GENERAL.—With respect to services furnished 
during the interim period (as defined in clause (iii)) for 
any fiscal year, and notwithstanding any other provi-
sion of this Act, payments under the health insurance 
programs under title XVIII of the Social Security Act 
shall not be reduced by an initial order under this 
subsection for that fiscal year. 
"(ii) 
DIRECTOR OF OMB TO DETERMINE ANNUALIZED 
PERCENTAGE REDUCTION.—The Director of OMB, in con-
sultation with the Secretary of Health and Human 
Services, shall determine a percentage reduction which 
shall apply to payments under the health insurance 
programs under title XVIII of the Social Security Act 
for services furnished in any fiscal year after the in-
terim period for that year, such that the reduction 
made in such payments under the final order under 
subsection (b) for that year shall achieve a total reduc-
tion of 2 percent (or, if lower, the uniform percentage 
reduction provided under section 251(a)(3)(E)(i)) in such 
payments for such fiscal year as determined on a 12-
month basis. 
"(iii) INTERIM PERIOD.—In this subparagraph, the 
term 'interim period' means, with respect to a fiscal 
b
-
>
«
( )-i| 
year, the period beginning on October 1 of the fiscal 
year and ending on the date of the issuance of the final 
101 STAT. 766 
PUBLIC LAW 100-119—SEPT. 29, 1987 
Clongress. 
m 
•lb''-
•10 
-ft-
f?' 
-S' I 
0:dt 
order under subsection (b) with respect to that fiscal 
year. 
"(5) ACCOMPANYING MESSAGE.—Not later than the 15th day 
beginning after the President issues an initial order under 
paragraph (1) for any fiscal year, the President shall transmit to 
both Houses of Congress a single message containing all the 
information required by section 251(a)(4) and further specifying 
in strict accordance with paragraph (2)— 
"(A) within each account, for each program, project, and 
activity, or budget account activity, the base from which 
each sequestration or reduction is taken and the amounts 
which are to be sequestered or reduced for each such pro-
gram, project, and activity or budget account activity; and 
"(B) such other supporting details as the President may 
determine to be appropriate. 
Upon receipt in the Senate and the House of Representatives, 
the message (and any accompanying proposals made under 
subsection (c)(1)) shall be referred to all committees with juris-
diction over programs, projects, and activities affected by the 
order. 
"(6) EFFECTIVE DATE OF INITIAL ORDER.— 
"(A) FISCAL YEAR 1988.—The order issued by the Presi-
dent under paragraph (1) with respect to fiscal year 1988 
shall be effective as of the day it is issued (and the Presi-
dent shall withhold from obligation or expenditure as pro-
vided in paragraph (4), pending the issuance of the final 
order under subsection (b), any amounts that are seques-
tered under such order). 
"(B) FISCAL YEARS 1989-1993.—The order issued by the 
,^, 
President under paragraph (1) with respect to the fiscal 
year 1989 or any subsequent fiscal year shall be effective as 
of October 1 of such fiscal year (and the President shall 
withhold from obligation or expenditure as provided in 
paragraph (4), pending the issuance of the final order under 
subsection (b), any amounts that are sequestered under 
such order). 
"(7) TREATMENT OF AUTOMATIC SPENDING INCREASES.— 
"(A) 
FISCAL YEARS 1987-1993.—Notwithstanding 
any 
other provision of law, any automatic spending increase 
that would (but for this clause) be first paid during the 
period beginning with the first day of such fiscal year and 
ending with the date on which a final order is issued 
pursuant to subsection (b) shall be suspended until such 
final order becomes effective, and the amounts that would 
otherwise be expended during such period with respect to 
such increases shall be withheld. If such final order pro-
vides that automatic spending increases shall be reduced to 
zero during such fiscal year, the increases suspended pursu-
ant to the preceding sentence and any legal rights thereto 
shall be permanently cancelled. If such final order provides 
for the payment of the full amount of such increases, the 
-• 
increases suspended pursuant to such sentence shall be 
restored to the extent necessary to pay such reduced or full 
' 
increases, and lump-sum payments in the amounts nec-
essary to pay such reduced or full increases shall be made, 
for the period for which such increases were suspended 
i ' 
pursuant to this clause. * 
jT^.ji.ti.Mn-'a 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 767 
> 
/ 
"(B) PROHIBITION AGAINST RECOUPMENT.—Notwithstand-
ing subparagraph (A), if an amount required to be withheld 
is paid, no recoupment shall be made against an individual 
to whom payment was made. 
"(C) EFFECT OF LUMP-SUM PAYMENTS ON NEEDS-RELATED 
PROGRAMS.—Lump-sum payments made under the last sen-
tence of subparagraph (A) shall not be considered as income 
or resources or otherwise taken into account in determining 
the eligibility of any individual for aid, assistance, or bene-
fits under any Federal or federally assisted program which 
conditions such eligibility to any extent upon the income or 
resources of such individual or his or her family or house-
hold, or in determining the amount or duration of such aid, 
assistance, or benefits. 
'(b) ISSUANCE OF FINAL ORDER.— 
"(1) IN GENERAL.—On October 15 of the fiscal year (or on 
November 20, 1987, in the case of fiscal year 1988), after the 
submission of the revised report by the Director of 0MB under 
section 251(c)(2), the President shall issue a final order under 
this section to make all of the reductions and sequestrations 
specified in such report, but only to the extent and in the 
manner provided in such report. The order issued under this 
subsection— 
"(A) shall include the same reductions and sequestrations 
i 
as the initial order issued under subsection (a), adjusted to 
the extent necessary to take account of any changes in 
relevant amounts or percentages determined by the Direc-
tor of 0MB in the revised report submitted under section 
251(c)(2), and shall include a reduction in payments under 
the health care programs under title XVIII of the Social 
Security Act determined in accordance with subsection 
(a)(4)(B)(ii), 
"(B) shall make such reductions and sequestrations in 
strict accordance with the requirements of sections 251(a) (3) 
and (4), and 
"(C) shall utilize the same criteria and guidelines as those 
which were used in the issuance of such initial order under 
subsection (a). 
The provisions of section 251(a)(3) shall apply to the revised 
report submitted under section 251(c)(2) and to the order issued 
under this subsection in the same manner as such provisions 
apply to the initial report issued under section 251(a)(2)(B) and 
to the order issued under subsection (a). 
"(2) ORDER REQUIRED IF DEFICIT REDUCTION IS ACHIEVED.—If 
the Director of 0MB issues a revised report under section 
251(c)(2) stating that as a result of laws enacted and regulations 
promulgated as final after August 15 of the calendar year in 
which such fiscal year begins (or October 10, 1987, in the case of 
fiscal year 1988) no deficit reduction is necessary to fully satisfy 
the requirements of section 251(a)(3)(A), the order issued under 
this subsection shall so state and shall make available for 
r- = 
obligation and expenditure any amounts withheld pursuant to 
subsection (a)(4) or (a)(7). 
"(3) EFFECTIVE DATE OF FINAL ORDER.— 
"(A) The final order issued by the President under para-
graph (1) shall become effective on the date of its issuance. 
101 STAT. 768 
PUBLIC LAW 100-119—SEPT. 29, 1987 
-bftsJ 
and shall supersede the initial order issued under subsec-
b' 
tion (a)(1). 
IJ 
"(B) Any modification or suspension by such order of the 
operation of a provision of law that would (but for such 
ciai'A 
order) require an automatic spending increase to take effect 
during the fiscal year shall apply for the one-year period 
9 
beginning with the date on which such automatic increase 
j: 
would have taken effect during such fiscal year (but for 
such order). 
r 
"(4) ACCOMPANYING MESSAGE.—Not later than the 15th day 
-; beginning after the President issues a final order under para-
- 
graph (1) for any fiscal year, the President shall transmit to 
both Houses of Congress a single message in the same manner 
as, and containing all the information required by, subsection 
(aX5). 
i "(c) PROPOSAL OF ALTERNATIVES BY THE PRESIDENT.— 
& 
"(1) IN GENERAL.—A message transmitted pursuant to subsec-
•! tion (a)(5) with respect to a fiscal year may be accompanied by a 
-; 
proposal setting forth in full detail alternative ways to reduce 
F
. the deficit for such fiscal year in an amount not less than the 
f 
deficit reduction required under section 251(a)(3) for such fiscal 
e 
year. 
"(2) FLEXIBILITY AMONG DEFENSE PROGRAMS, PROJECTS, AND 
c 
ACTIVITIES.— 
t 
"(A) Subject to subparagraphs (B), (C), and (D), and 
{
. 
subsection (d), new budget authority and unobligated bal-
ances for any programs, projects, or activities within major 
f 
functional category 05() (other than a military personnel 
- 
account) may be further reduced beyond the amount speci-
L.. 
fled in an order issued by the President under subsection 
fioijt) 
(b)(1) for such fiscal year. To the extent such additional 
reductions are made and result in additional outlay reduc-
nr v. 
tions, the President may provide for lesser reductions in 
(F,)(fc 
new budget authority and unobligated balances for other 
programs, projects, or activities within major functional 
r 
category 050 for such fiscal year, but only to the extent that 
J 
the resulting outlay increases do not exceed the additional 
outlay reductions, and no such program, project, or activity 
i>e«'' 
may be increased above the level actually made available 
i 
by law in appropriation Acts (before taking sequestration 
€ 
into account). In making calculations under this subpara-
b'.m 
graph, the President shall use account outlay rates that are 
identical to those used in the report by the Director of 0MB 
i r .. 
under section 251(c)(2). 
B^-V^'^ 
"(B) No actions taken by the President under subpara-
E 
graph (A) for a fiscal year may result in a domestic base 
n 
closure or realignment that would otherwise be subject to 
i 
section 2687 of title 10, United States Code. 
"(C) The President may not exercise the authority pro-
vided by this paragraph for a fiscal year unless— 
Reports. 
u 
"(i) the President submits a single report to Congress 
o* to 
specifying changes proposed to be made for such fiscal 
year pursuant to this paragraph; and 
"(ii) a joint resolution affirming or modifying the 
changes proposed by the President pursuant to this 
,i 
paragraph becomes law. 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 769 
-
" 
"(D) Within 5 calendar days of session after the President 
Congress. 
submits a report to Congress under subparagraph (C)(i) for 
a fiscal year, but before November 25, 1987, for fiscal year 
1988 or, in the case of any subsequent fiscal year, before 
,
< 
October 20 of such fiscal year, the majority leader of each 
^jj 
House of Congress shall (by request) introduce a joint reso-
5, 
lution which contains provisions affirming the changes pro-
.rf 
posed by the President pursuant to this paragraph. 
"(E)(i) The matter after the resolving clause in any joint 
resolution introduced pursuant to subparagraph (D) shall 
be as follows: That the report of the President as submitted 
^..ff-f 
on [Insert Date] under section 252(c)(2)(C)(i) is hereby 
f,r 
approved.'. 
.-[; 
"(ii) The title of the joint resolution shall be 'Joint resolu-
l^fi 
tion approving the report of the President submitted under 
section 252(c)(2)(C)(i) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985.'. 
"(iii) Such joint resolution shall not contain 
any 
^,i 
preamble. 
m 
. 
"(F)(i) A joint resolution introduced in the House of Rep-
iiDijij 1 resentatives under subparagraph (D) shall be referred to 
the Committee on Appropriations, and if not reported 
edi oj within 5 calendar days (excluding Saturdays, Sundays, and 
0j 
legal holidays) from the date of introduction shall be consid-
fj3 
ered as having been discharged therefrom and shall be 
03 
placed on the appropriate calendar pending disposition of 
3g. 
such joint resolution in accordance with this subsection, 
"(ii) A joint resolution introduced in the Senate under 
subparagraph (D) shall be referred to the Committee on 
Appropriations, and if not reported within 5 calendar days 
(excluding Saturdays, Sundays, and legal holidays) from the 
date of introduction shall be considered as having been 
discharged therefrom and shall be placed on the appro-
priate calendar pending disposition of such joint resolution 
in accordance with this subsection. In the Senate, no 
amendment made in the Committee on Appropriations 
shall be in order other than an amendment (in the nature 
of a substitute) that is germane or relevant to the provisions 
of the joint resolution or to the order issued under section 
,,j^ 
252(b)(1) insofar as they relate to major function 050 (na-
tional defense). 
"(iii) On or after the third calendar day (excluding Satur-
days, Sundays, and legal holidays) beginning after a joint 
resolution is placed on the appropriate calendar, notwith-
^l , 
, standing any rule or precedent of the Senate, including 
I 
Rule 22 of the Standing Rules of the Senate, it is in order 
jr, 
(even though a previous motion to the same effect has been 
,|j 
disagreed to) for any Member of the respective House to 
move to proceed to the consideration of the joint resolution, 
and all points of order against the joint resolution (and 
against consideration of the joint resolution) are waived, 
except for points of order under titles III and IV of the 
Congressional Budget Act of 1974. The motion is not in 
order after the eighth calendar day (excluding Saturdays, 
Sundays, and legal holidays) beginning after such joint 
resolution is placed on the appropriate calendar. The 
motion is highly privileged in the House of Representatives 
-•j'B-
m 
ai 
101 STAT. 770 
PUBLIC LAW 100-119—SEPT. 29, 1987 
.msm.ud') .1 
and is privileged in the Senate and is not debatable. The 
'
^
^ 
motion is not subject to amendment, or to a motion to 
postpone, or to a motion to proceed to the consideration of 
'^ 
other business. A motion to reconsider the vote by which 
the motion is agreed to or disagreed to shall not be in order. 
If a motion to proceed to the consideration of the joint 
"*' 
resolution is agreed to, the respective House shall imme-
, 
diately proceed to consideration of the joint resolution with-
-~-^ • 
out intervening motion, order, or other business, and the 
joint resolution shall remain the unfinished business of the 
respective House until disposed of. 
\t.i3 • 
' (G)(i) In the Senate, debate on a joint resolution intro-
duced under subparagraph (D), amendments thereto, and 
all debatable motions and appeals in connection therewith 
'^^'' 
shall be limited to not more than 10 hours, which shall be 
'' 
divided equally between the majority leader and the minor-
ity leader (or their designees). In the House, general debate 
'C-A* 
on a joint resolution introduced under subparagraph (D) 
shall be limited to not more than 4 hours which shall be 
~
^ 
equally divided between the chairman of the Committee on 
^ 
Appropriations and the ranking minority member of such 
^ 
committee. 
^; 
"(ii) A motion to postpone, or a motion to proceed to the 
consideration of other business is not in order. A motion to 
^ 
reconsider the vote by which the joint resolution is agreed 
'••'• 
to or disagreed to is not in order. In the Senate, a motion to 
recommit the joint resolution is not in order. In the House, 
a motion further to limit debate is in order and not debat-
^ 
able. In the House, a motion to recommit, with or without 
• 
instructions, is in order. 
"(H)(i) In the House of Representatives, an amendment 
*
^ 
and any amendment to an amendment is debatable for not 
to exceed 30 minutes to be equally divided between the 
^ 
proponent of the amendment and a Member opposed 
^ 
thereto. 
^
" 
"(ii) No amendment that is not germane or relevant to 
*
^
' 
the provisions of the joint resolution or to the order issued 
^ 
under section 252(b)(1) insofar as they relate to major func-
tion 050 (national defense) shall be in order in the Senate. 
In the Senate, an amendment, any amendment to an 
amendment, or any debatable motion or appeal is debatable 
* • 
for not to exceed 30 minutes to be equally divided between 
the majority leader and the minority leader (or their 
designees). 
f 
"(iii) In the Senate, an amendment that is otherwise in 
*
' 
order shall be in order notwithstanding the fact that it 
' 
amends the joint resolution in more than one place or 
^ 
amends language previously amended. It shall not be in 
order in the Senate to vote on the question of agreeing to 
such a joint resolution or any amendment thereto unless 
the figures then contained in such joint resolution or 
amendment are mathematically consistent. 
"(iv) It shall not be in order in the Senate to consider any 
amendment to any joint resolution introduced under 
^ 
subparagraph (D) or any conference report thereon if such 
amendment or conference report would have the effect of 
'-" 
decreasing any specific budget outlay reductions below the 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 771 
level of such outlay reductions provided in such joint resolu-
tion unless such amendment or conference report makes a 
reduction in other specific budget outlays at least equiva-
lent to any increase in outlays provided by such amend-
ment or conference report. 
"(v) For purposes of the application of clause (iv), the 
level of outlays and specific budget outlay reductions pro-
vided in an amendment shall be determined on the basis of 
estimates made by the Committee on the Budget of the 
Senate. 
"(I) Immediately following the conclusion of the debate on 
a joint resolution introduced under subparagraph (D), a 
single quorum call at the conclusion of the debate if re-
quested in accordance with the rules of the appropriate 
House, and the disposition of any amendments under 
subparagraph (H) (except in the House of Representatives 
for the motion to recommit and the disposition of any 
amendment proposed in a motion to recommit which has 
been adopted), the vote on final passage of the joint resolu-
tion shall occur. 
"(J) Appeals from the decisions of the Chair relating to 
the application of the rules of the Senate or the House of 
Representatives, as the case may be, to the procedure relat-
ing to a joint resolution described in subparagraph (D) shall 
be decided without debate. 
"(K) In the Senate, points of order under titles III and IV 
of the Congressional Budget Act of 1974 (including points of 
order under sections 302(c), 303(a), 306, and 401(b)(1)) are 
applicable to a conference report on the joint resolution or 
any amendments in disagreement thereto. 
"(L) If, before the passage by the Senate of a joint resolu-
tion of the Senate introduced under subparagraph (D), the 
Senate receives from the House of Representatives a joint 
resolution introduced under subparagraph (D), then the 
following procedures shall apply: 
"(i) The joint resolution of the House of Representa-
tives shall not be referred to a committee. 
"(ii) With respect to a joint resolution introduced 
under subparagraph (D) in the Senate— 
"(I) the procedure in the Senate shall be the 
same as if no joint resolution had been received 
from the House; but 
"(II)(aa) the vote on final passage shall be on the 
joint resolution of the House if it is identical to the 
joint resolution then pending for passage in the 
Senate; or 
"(bb) if the joint resolution from the House is not 
identical to the joint resolution then pending for 
passage in the Senate and the Senate then passes 
it, the Senate shall be considered to have passed 
the joint resolution as amended by the text of the 
Senate joint resolution. 
'''•^"'• 
"(iii) Upon disposition of the joint resolution received 
.. .J l:]? 
from the House, it shall no longer be in order to 
consider the joint resolution originated in the Senate. 
"(M) If the Senate receives from the House of Representa-
tives a joint resolution introduced under subparagraph (D) 
91-194 O - 90 - 26 : QL.3 Part 1 
101 STAT. 772 
PUBLIC LAW 100-119—SEPT. 29, 1987 
Federal 
Register, 
publication. 
-w 
after the Senate has disposed of a Senate originated joint 
f
; 
resolution which is identical to the House passed joint 
B 
resolution, the action of the Senate with regard to the 
I 
disposition of the Senate originated joint resolution shall be 
deemed to be the action of the Senate with regard to the 
f^rl 
House originated joint resolution. If it is not identical to the 
-
< 
House passed joint resolution, then the Senate shall be 
considered to have passed the joint resolution of the House 
as amended by the text of the Senate joint resolution. 
"(d) EXISTING PROGRAMS, PROJECTS, AND ACTIVITIES NOT To BE 
ELIMINATED.—No action taken by the President under subsection (a) 
or (b) of this section shall have the effect of eliminating any pro-
gram, project, or activity of the Federal Government. 
"(e) RELATIVE BUDGET PRIORITIES NOT TO BE ALTERED.—Nothing 
in the preceding provisions of this section shall be construed to give 
the President new authority to alter the relative priorities in the 
Federal budget that are established by law, and no person who is or 
becomes eligible for benefits under any provision of law shall be 
denied eligibility by reason of any order issued under this part. 
"(f) PART-YEAR APPROPRIATIONS.— 
"(1) EFFECT OF FINAL ORDER ON PART-YEAR APPROPRIATION.—If, 
at the time the President issues a final order for any fiscal year, 
there is in effect an Act making or continuing appropriations 
for part of the fiscal year for any budget account which is 
subject to reduction under the order, then the amount seques-
tered upon issuance of the order for that account shall be equal 
to the reduction amount for such account required by the final 
order multiplied by a fraction the numerator of which is the 
number of days during the fiscal year with respect to which the 
Act applies and the denominator of which is 365. 
"(2) EFFECT OF SUBSEQUENT APPROPRIATION ON FINAL ORDER.— 
"(A) If, after the issuance of a final order for a fiscal year 
under subsection (b), an Act referred to in paragraph (1) is 
0 
extended or an Act making or continuing appropriations for 
part of the fiscal year for the account is enacted, then 
-B.f 
additional amounts determined in the same manner shall 
be sequestered. 
bo 
"(B) Upon enactment of a full-year appropriation (includ-
ing a continuing appropriation for the full year) for the 
A
j
-
f
3 
account, the full amount of the sequestration specified by 
|)9v 
the final order, reduced by the sum of amounts previously 
sequestered and savings achieved by such appropriation 
measure when the amount enacted is less than the budget 
baseline for such account, shall be sequestered, except that 
tH! 
the sum shall not exceed the amount specified in the final 
order for the account. 
"(3) EFFECTIVE DATE OF SEQUESTRATIONS.—Amounts required 
to be sequestered by the President under paragraph (1) or (2) 
shall be sequestered not later than the close of the fifth cal-
endar day beginning after the date of enactment into law of the 
relevant Act referred to in paragraph (1) or (2). 
"(g) PRINTING OF ORDERS.—Each initial order and final order 
issued under this section shall be submitted to the Federal Register 
on the date it is issued and printed on the following day. If the date 
specified for the issuance of an order or its printing in the Federal 
Register under this section falls on a Sunday or legal holiday, such 
order shall be issued or printed on the following day." 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 773 
(b) CONFORMING AMENDMENTS.— 
(1) CONGRESSIONAL PROCEDURES.—Section 254(b)(1)(A) of the 
Act is amended by striking out "the Comptroller General under 
2 USC 904. 
section 251(c)(2)" and by inserting in lieu thereof "the Director 
of 0MB under section 251(c)(2)". 
(2) SEQUESTRATIONS.—Section 256(a)(2) of the Act is amended 
2 use 906. 
to read as follows: 
"(2) SEQUESTRATIONS.—Any amounts of new budget authority; Loans, 
unobligated balances; new loan guarantee commitments or 
limitations; new direct loan obligations, commitments, or 
limitations; spending authority as defined in section 401(c)(2) of 
the Congressional Budget Act of 1974; or obligation limitations 
which are sequestered or automatic spending increases which 
are reduced under an order issued under section 252 are perma-
nently cancelled or reduced; with the exception of amounts 
sequestered or reduced in special or trust funds, which shall 
remain in such funds and be available in accordance with and to 
the extent permitted by law, including the provisions of this 
Act.". 
(3) TREATMENT OF OBLIGATED BALANCES.—Section 256(1) of the 
Act is amended to read as follows: 
"(1) TREATMENT OF OBLIGATED BALANCES.—Obligated balances 
shall not be subject to reduction under an order issued under section 
252.". 
(4) DEFINITION OF SEQUESTRATION.—Section 257(7) of the Act is 
2 use 907. 
amended to read as follows: 
"(7) The terms 'sequester' and 'sequestration' (subject to sec-
tion 252(a)(4)) refer to or mean the reduction or cancellation of 
new budget authority; unobligated balances, new loan guaran-
tee commitments or limitations; new direct loan obligations, 
commitments, or limitations; spending authority as defined in 
section 401(c)(2) of the Congressional Budget Act of 1974; and 
obligation limitations.". 
(5) DEFINITION OF SEQUESTERABLE RESOURCE.—Section 257 
of 
the Act is amended by adding after paragraph (8) the following 
new paragraph: 
"(9) The term 'sequesterable resource' means new budget 
authority; unobligated balances; new loan guarantee commit-
ments or limitations; new direct loan obligations, commitments, 
or limitations; spending authority as defined in section 401(c)(2) 
of the Congressional Budget Act of 1974; and obligation limita-
tions for budget accounts, programs, projects, and activities that 
are not exempt from reduction or sequestration under this 
part.". 
(6) 
CLARIFYING 
AMENDMENT 
RESPECTING 
APPROPRIATED 
ENTITLEMENTS.—Section 257 of the Act is amended by adding 
after paragraph (10) the following new paragraph: 
"(11) As used in this part, all references to section 401(c)(2) of 
the Congressional Budget Act of 1974 shall include (but are not 
limited to) payments to any person or government under terms 
of law for the following programs: 
"(A) Claims, defense (97-0102-0-1-051). 
• 
"(B) Veterans compensation (36-0153-0-1-701). 
_
. , 
"(C) Veterans pensions (36-0154-0-1-701). 
"• " 
"(D) Burial benefits and miscellaneous assistance (36-
0155-0-1-701). 
umi r <: u^g) Readjustment benefits (36-0137-0-1-702). 
101 STAT. 774 
PUBLIC LAW 100-119—SEPT. 29, 1987 
"(F) Loan guaranty revolving fund (36-4025-0-3-704). 
"(G) Guaranteed student loans (91-0230-0-1-502). 
"(H) Social services block grant (75-1634-0-1-506). 
"(I) Family social services (75-1645-0-1-506). 
"(J) Rehabilitation services and handicapped research 
'•''• 
(91-0301-0-1-506). 
"(K) Grants to States for medicaid (75-0512-0-1-551). 
"(L) Special benefits for disabled coal miners (75-0409-0^ 
1-601). 
"(M) Black lung disability trust fund (20-8144-0-7-601). 
"(N) Special benefits (16-1521-0-1-602). 
"(O) Federal unemployment benefits and allowances (16-
0326-0-1-603). 
"(P) Supplemental security income program (75-0406-0-
1-609). 
"(Q) Family support payments to States (75-1501-0-1-
609). 
- - 
"(R) Food stamp program (12-3505-0-1-605). 
, , 
"(S) Child nutrition programs (12-3539-0-1-605). 
mii ..i' 
<'(X) Retired pay, coast guard (69-0241-0-1-403). 
"(U) Government payment for annuitants, employees 
health benefits (24-0206-0-1-551).". 
(7) DEFINITIONS OF ASSET SALE AND LOAN PREPAYMENT.—Sec-
2 use 907. 
tion 257 of the Act is amended by adding after paragraph (11) 
the following new paragraph: 
"(12) The sale of an asset means the sale to the public of any 
asset, whether physical or financial, owned in whole or in part 
by the United States. The term 'prepayment of a loan' means 
payments to the United States made in advance of the schedules 
set by law or contract when the financial asset is first acquired, 
such as the prepayment to the Federal Financing Bank of loans 
guaranteed by the Rural Electrification Administration. If a 
law or contract allows a flexible payment schedule, the term 'in 
advance' shall mean in advance of the slowest payment sched-
ule allowed under such law or contract.". 
(8) DEFINITION OF OUTLAY RATE.—Section 257 of the Act is 
amended by adding after paragraph (12) the following new 
paragraphs: 
"(13) The term 'outlay rate', with respect to any budget 
account, program, project, or activity, means— 
"(A) the ratio of outlays resulting in the fiscal year 
involved from new budgetary resources for such budget 
'^ • 
account, program, project, or activity to such new budg-
etary resources; or 
"(B) the ratio of outlays resulting in the fiscal year 
involved from unobligated balances for such budget ac-
count, program, project, or activity to such unobligated 
balances. 
"(14) The term 'combined outlay rate', with respect to any 
budget account, program, project, or activity, means the 
weighted average (by budgetary resources) of the ratios deter-
mined under subparagraphs (A) and (B) of paragraph (13) for 
such budget account, program, project, or activity.". 
2 use 922. 
(9) ALTERNATE PROCEDURES.—Section 274(f) of the Act is 
amended— 
(A) by striking out paragraph (1) and by inserting in lieu 
thereof the following new paragraph: 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 775 
, 
"(1) In the event that any of the reporting procedures de-
scribed in section 251 are invalidated, then any report of the 
Director of CBO under section 251(a)(2)(A) or 251(c)(1) shall be 
transmitted to the joint committee established under this 
. 
subsection.", 
(B) in paragraphs (2) and (3) by striking out "Directors" 
both places it appears therein and by inserting in lieu 
thereof "Director of CBO"; and 
J 
(C) in paragraph (5) by striking out "section 251 (b) or 
(c)(2)" and by inserting in lieu thereof "section 251 (a)(2)(B) 
or (c)(2)". 
(10) COMPTROLLER GENERAL'S ESTIMATES.—Subsection (h) of 
section 274 of the Act is amended— 
2 use 922. 
(A) by striking out "Comptroller General" both times it 
appears therein and by inserting in lieu thereof "Director 
of 0MB" and by striking out "section 251(b)" and by insert-
ing in lieu thereof "section 251(a)(2)(B)"; and 
(B) by striking out ", assumptions, and methodologies" 
and by inserting 
in lieu 
thereof 
"and economic 
assumptions". 
(11) CONFORMING MEDICARE AMENDMENT.—Section 256(d)(1)(B) 
of the Act is amended by inserting after "2 percent" the follow- 
2 USC 906. 
ing: "(or such higher percentage as mav apply as determined in 
accordance with section 252(a)(4)(B)(ii)) . 
SEC. 
1
0
3
. 
COMPLIANCE 
REPORT 
BY 
COMPTROLLER 
GENERAL. 
^ 
Section 253 of the Act is amended to read as follows: 
2 USC 903. 
"SEC. 253. COMPLIANCE REPORT BY COMPTROLLER GENERAL. 
"On or before November 15 of each fiscal year (or December 15, 
1987, in the case of the fiscal year 1988), the Comptroller General 
shall submit to the Congress and the President a report on— 
"(1) the extent to which each order issued by the President 
under section 252 for such fiscal year complies with all of the 
requirements contained in section 252, either certifying that the 
order fully and accurately complies with such requirements or 
indicating the respects in which it does not; 
"(2) the extent to which each report of the Director of 0MB 
under section 251 for such fiscal year complies with all of the 
requirements contained in this part, either certifying that the 
report fully and accurately complies with such requirements or 
indicating the respects in which it does not; and 
"(3) any recommendations of the Comptroller General for 
improving the procedures set forth in this part.". 
SEC. 104. EXEMPT PROGRAMS AND ACTIVITIES. 
(a) CLARIFYING AMENDMENTS.—(1) Section 255(h) of the Act is 
2 use 905. 
amended by including after the item relating to child nutrition the 
following new item: 
"Commodity supplemental food program (12-3512-0-1-605);". 
(2) Section 255(g)(1) of the Act is amended— 
(A) by inserting after the item relating to intragovernmental 
funds the following new item: 
"Medical facilities guarantee and loan fund. Federal in-
terest subsidies for medical facilities (75-4430-03-551);". 
(B) by inserting after the item relating to the Health Edu-
cation Assistance Loan Program the following new item: 
101 STAT. 776 
PUBLIC LAW 100-119—SEPT. 29, 1987 
"Higher education facilities loans and insurance (91-
' ' 
0240-01-502);". 
(C) by inserting after the item relating to the Bonneville 
Power Administration the following new item: 
"Bureau of Indian Affairs, miscellaneous payments to 
^•"* 
Indians (14-2303-0-1-452);". 
' '3; 
(D) by inserting before the item relating to the Postal service 
fund the following new item: 
"Payments to widows and heirs of deceased Members of 
Congress (00-0215-0-1-801);". 
^ 
(E) by inserting before the item relating to the Alaska Power 
^^ 
Administration the following new item: 
' •'. M" 
"Thrift Savings Fund (26-8141-0-7-602);". 
'•""• 
(F) by inserting after the item relating to the Tennessee 
Valley Authority the following new item: 
> 
"Washington Metropolitan Area Transit Authority, inter-
est payments (46-0300-0-1-401);". 
2 use 906. 
(3) Section 256(b)(4) of the Act is amended by inserting at the end 
thereof the following new subparagraph: 
"(G) Federal Retirement Thrift Investment Board.". 
(4) Section 256(e) of the Act is amended by striking out "Any 
. H h J iti i: 
order" and by inserting in lieu thereof "Notwithstanding any 
change in the display of budget accounts, any order", 
(b) AMENDMENTS TO SPECIFICALLY INCLUDE IN THIS ACT EXEMP-
2 use 905. 
TioNS ENACTED SINCE 1985.—(1) Section 255(b) of the Act is amended 
by inserting after the colon the following: 
"National Service Life Insurance Fund (36-8132-0-7-701); 
"Service-Disabled Veterans Insurance Fund (36-4012-0-3-
, . 
701); 
i 
"Veterans Special Life Insurance Fund (36-8455-0-8-701); 
"Veterans Reopened Insurance Fund (36-4010-0-3-701); 
"United States Government Life Insurance Fund (36-8150-0-
7-701); 
; : 
"Veterans Insurance and Indemnity (36-0120-0-1-701); 
^ 
"Special Therapeutic and Rehabilitation Activities Fund (36-
•
s > < 4048-0-3-703); 
"Veterans' Canteen Service Revolving Fund (36-4014-0-3-
. 705); 
"Benefits under chapter 21 of title 38, United States Code, 
relating to specially adapted housing and mortgage-protection 
' 
life insurance for certain veterans with service-connected 
disabilities (36-0137-0-1-702); 
"Benefits under section 907 of title 38, United States Code, 
relating to burial benefits for veterans who die as a result of 
service-connected disability (36-0155-0-1-701); 
"Benefits under chapter 39 of title 38, United States Code, 
•' 
' 
relating to automobiles and adaptive equipment for certain 
disabled veterans and members of the Armed Forces (36-0137-
0-1-702);". 
(2) Section 255(g)(1) of the Act is amended— 
(A) by inserting after the item relating to intragovernmental 
funds the following new item: 
"Panama Canal Commission, operating expenses (95-
5190-0-2-403), and Panama Canal Commission, capital 
,.^ 
outlay (95-5190-0-2-403);"; 
(B) by inserting after the item relating to payments to trust 
funds the following new item: 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 777 
"Payments to the United States territories, fiscal assist-
ance (14-0418-0-1-852);"; 
(C) by inserting after the item relating to compensation of the 
President the following new item: 
^,,p ^. 
"Customs Service, miscellaneous permanent appropria-
tions (20-9922-0-2-852);"; 
(D) by inserting before the item relating to intragovernmental 
funds the following new item: 
"Internal Revenue Collections for Puerto Rico (20-5737-
y. 
0-2-852);"; 
' 
(E) by inserting after the first item the following new item: 
"Administration of Territories, Northern Mariana Islands 
Covenant grants (14-0412-0-1-806);"; and 
(F) by inserting after the item relating to payments to the 
military retirement fund the following new item: 
"Compact of Free Association, economic assistance pursu-
ant to Public Law 99-658 (14-0415-0-1-806);". 
(3) Section 255(g)(1) of the Act is amended by inserting "(A)" after 
2 USC 905. 
"(1)" 
and by inserting at the end thereof the following new 
subparagraph: 
"(B) The following budget accounts and activities shall be 
exempt from reduction under any order issued under this part: 
"Black lung benefits (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-
r 
801); 
"Foreign service retirement and disability fund (19-8186-
0-7-602); 
"Judicial survivors' annuities fund (10-8110-0-7-602); 
"Longshoremen's 
and 
harborworkers' 
compensation 
benefits (16-9971-0-7-601); 
"Military retirement fund (97-8097-0-7-602); 
"National Oceanic and Atmospheric 
Administration 
retirement (13-1450-0-1-306); 
"Pensions for former Presidents (47-0105-0-1-802); 
"Railroad retirement tier II (60-8011-0-7-601); 
"Retired pay, Coast Guard (69-0241-0-1-403); 
"Retirement pay and medical benefits for commissioned 
officers. Public Health Service (75-0379-0-1-551); 
"Special benefits. Federal Employees' Compensation Act 
(16-1521-0-1-600); 
"Special benefits for disabled coal miners (75-0409-0-1-
601); and 
"Tax Court judges survivors annuity fund (23-8115-0-7-
602).". 
(c) CONFORMING AMENDMENTS.—(1) Section 255(g)(2) of the Act is Veterans. 
amended by repealing the items relating to veterans with the 
exception of the items relating to the Loan guaranty revolving fund 
and the Servicemen's group life insurance fund. 
(2) Paragraph (1) of section 257 of the Act is amended by striking 
2 use 907. 
out subparagraph (A), by striking out the dash, and by striking out 
"(B)". 
101 STAT. 778 
PUBLIC LAW 100-119—SEPT. 29, 1987 
SEC. 105. MODIFICATION OF PRESIDENTIAL ORDER. 
(a) IN GENERAL.—Part C of the Act is amended by inserting at the 
end thereof the following new section: 
2 use 908. 
"SEC. 258. MODIFICATION OF PRESIDENTIAL ORDER. 
"(a) INTRODUCTION OF JOINT RESOLUTION.—At any time after the 
Director of 0MB issues a report under section 251(c)(2) for a fiscal 
year, but before the close of the tenth calendar day of session in that 
session of Congress beginning after the date of issuance of such 
report, the majority leader of either House of Congress may intro-
duce a joint resolution which contains provisions directing the 
President to modify the most recent order issued under section 252 
for such fiscal year. After the introduction of the first such joint 
resolution in either House of Congress in any calendar year, then no 
other joint resolution introduced in such House in such calendar 
year shall be subject to the procedures set forth in this section, 
"(b) PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTIONS.— 
,
_ 
"(1) No REFERRAL TO COMMITTEE,—A joint resolution intro-
duced in the Senate or the House of Representatives under 
subsection (a) shall not be referred to a committee of the Senate 
or the House of Representatives, as the case may be, and shall 
" 
be placed on the appropriate calendar pending disposition of 
*
* such joint resolution in accordance with this subsection. 
"(2) IMMEDIATE CONSIDERATION,—On or after the third cal-
endar day (excluding Saturdays, Sundays, and legal holidays) 
beginning after a joint resolution is introduced under subsection 
(a), notwithstanding any rule or precedent of the Senate, includ-
ing Rule 22 of the Standing Rules of the Senate, it is in order 
" 
(even though a previous motion to the same effect has been 
disagreed to) for any Member of the respective House to move to 
'^ 
proceed to the consideration of the joint resolution, and all 
points of order against the joint resolution (and against consid-
eration of the joint resolution) are waived, except for points of 
i} 
order under titles III or IV of the Congressional Budget Act of 
1974. The motion is not in order after the eighth calendar day 
(excluding Saturdays, Sundays, and legal holidays) beginning 
, 
after a joint resolution (to which the motion applies) is 
introduced. The motion is highly privileged in the House of 
Representatives and is privileged in the Senate and is not 
debatable. The motion is not subject to amendment, or to a 
motion to postpone, or to a motion to proceed to the consider-
,^. , ation of other business. A motion to reconsider the vote by 
which the motion is agreed to or disagreed to shall not be in 
I. 
order. If a motion to proceed to the consideration of the joint 
resolution is agreed to, the respective House shall immediately 
_, 
proceed to consideration of the joint resolution without inter-
vening motion, order, or other business, and the joint resolution 
shall remain the unfinished business of the respective House 
until disposed of, 
"(3) DEBATE.— 
'" ' 
"(A) In the Senate, debate on a joint resolution intro-
duced under subsection (a), amendments thereto, and all 
debatable motions and appeals in connection therewith 
shall be limited to not more than 10 hours, which shall be 
^ 
' 
divided equally between the majority leader and the minor-
ity leader (or their designees). In the House, general debate 
on a joint resolution introduced under subsection (a) shall 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 779 
be limited to not more than 4 hours which shall be equally 
divided between the majority and minority leaders. 
"(B) A motion to postpone, or a motion to proceed to the 
consideration of other business is not in order. A motion to 
reconsider the vote by which the joint resolution is agreed 
to or disagreed to is not in order. In the Senate, a motion to 
recommit the joint resolution is not in order. In the House, 
a motion further to limit debate is in order and not debat-
able. In the House, a motion to recommit is in order. 
"(C)(i) In the House of Representatives, an amendment 
and any amendment thereto is debatable for not to exceed 
30 minutes to be equally divided between the proponent of 
the amendment and a Member opposed thereto. 
"(ii) No amendment that is not germane or relevant to 
the provisions of the joint resolution or to the order issued 
under section 252(b)(1) shall be in order in the Senate. In 
the Senate, an amendment, any amendment to an amend-
ment, or any debatable motion or appeal is debatable for 
not to exceed 30 minutes to be equally divided between the 
majority leader and the minority leader (or their designees), 
"(iii) In the Senate, an amendment that is otherwise in 
order shall be in order notwithstanding the fact that it 
amends the joint resolution in more than one place or 
amends language previously amended. It shall not be in 
order in the Senate to vote on the question of agreeing to 
such a joint resolution or any amendment thereto unless 
the figures then contained in such joint resolution or 
amendment are mathematically consistent. 
"(4) VOTE ON FINAL PASSAGE.—Immediately following the 
conclusion of the debate on a joint resolution introduced under 
subsection (a), a single quorum call at the conclusion of the 
debate if requested in accordance with the rules of the appro-
priate House, and the disposition of any amendments under 
paragraph (3) (except for the motion to recommit in the House 
of Representatives), the vote on final passage of the joint resolu- 
.;: 
tion shall occur. 
"(5) APPEALS.—Appeals from the decisions of the Chair relat-
ing to the application of the rules of the Senate or the House of 
Representatives, as the case may be, to the procedure relating 
to a joint resolution described in subsection (a) shall be decided 
without debate. 
"(6) CONFERENCE REPORTS.—In the Senate, points of order 
under titles III and IV of the Congressional Budget Act of 1974 
(including points of order under sections 302(c), 303(a), 306, and 
401(b)(1)) are applicable to a conference report on the joint 
resolution or any amendments in disagreement thereto. 
"(7) RESOLUTION FROM OTHER HOUSE.—If, before the passage by 
the Senate of a joint resolution of the Senate introduced under 
subsection (a), the Senate receives from the House of Represent- 
;
,
*
» 
atives a joint resolution introduced under subsection (a), then 
the following procedures shall apply: 
"(A) The joint resolution of the House of Representatives 
shall not be referred to a committee. 
"(B) With respect to a joint resolution introduced under 
subsection (a) in the Senate— 
101 STAT. 780 
PUBLIC LAW 100-119—SEPT. 29, 1987 
'•>• «
• V 
"(i) the procedure in the Senate shall be the same as 
if no joint resolution had been received from the House; 
jj; 
' 
but 
•'' : - ' 
"(ii)(I) the vote on final passage shall be on the joint 
rt' , J 
resolution of the House if it is identical to the joint 
3 ..»/. 
resolution then pending for passage in the Senate; or 
eKi"- 
' 
"(11) if the joint resolution from the House is not 
•iiidj 
identical to the joint resolution then pending for pas-
'(•:'•' 
sage in the Senate and the Senate then passes it, the 
'r 
/' 
Senate shall be considered to have passed the joint 
K 
resolution as amended by the text of the Senate joint 
If. 
• ri 
resolution. 
"(C) Upon disposition of the joint resolution received from 
' 
the House, it shall no longer be in order to consider the 
resolution originated in the Senate. 
"(8) 
SENATE ACTION ON HOUSE RESOLUTION.—If the Senate 
receives from the House of Representatives a joint resolution 
introduced under subsection (a) after the Senate has disposed of 
a Senate originated resolution which is identical to the House 
passed joint resolution, the action of the Senate with regard to 
the disposition of the Senate originated joint resolution shall be 
deemed to be the action of the Senate with regard to the House 
originated joint resolution. If it is not identical to the House 
passed joint resolution, then the Senate shall be considered to 
have passed the joint resolution of the House as amended by the 
text of the Senate joint resolution.". 
(b) CLERICAL AMENDMENT.—The table of contents set forth in 
section 200(b) of the Act is amended by inserting after the item 
relating to section 257 the following new item: 
.
^ 
. 
, , 
"Sec. 258. Modification of Presidential order.". 
' 
"•''''•'• -•' 
SEC. 106. MAXIMUM DEFICIT AMOUNTS, 
(a) REVISION OF DEFINITION OF MAXIMUM DEFICIT AMOUNT.—Para-
graph (7) of section 3 of the Congressional Budget and Impoundment 
2 use 622. 
Control Act of 1974 is amended by striking out subparagraphs (D) 
through (F) and by inserting in lieu thereof the following: 
"(D) with respect to the fiscal year beginning October 1, 1987, 
$144,000,000,000; 
"(E) with respect to the fiscal year beginning October 1, 1988, 
bw« $136,000,000,000; 
"(F) with respect to the fiscal year beginning October 1, 1989, 
$100,000,000,000; 
i- 
"(G) with respect to the fiscal year beginning October 1, 1990, 
b - 
$64,000,000,000; 
tifu; 
"(H) with respect to the fiscal year beginning October 1, 1991, 
$28,000,000,000; and 
"(I) with respect to the fiscal year beginning October 1, 1992, 
zero.". 
2 use 907. 
Qo) DEFINITION OF MARGIN.—Section 257 of the Act is amended by 
inserting after paragraph (9) the following new paragraph: 
"(10) The term 'margin' means $10,000,000,000 with respect to 
*
" • each of fiscal years 1988 through 1992 and zero with respect to 
fiscal year 1993.". 
(c) REVISION OF EXPIRATION DATE OF THE BALANCED BUDGET AND 
EMERGENCY DEFICIT CONTROL ACT OF 1985.—Subsection rt))(l) of 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 781 
section 275 of the Act is amended by striking out "September 30, 2 USC 901 note. 
1991" and by inserting in lieu thereof "September 30,1993". 
(d) SECTION 301(i) POINT OF ORDER.—Paragraph (2) of section 301(i) 
of the Congressional Budget Act of 1974 is amended by inserting 2 USC 632. 
"(A)" before "Paragraph 
and by adding at the end thereof the 
following new paragraphs: 
"(B) Paragraph (1) shall not apply to the consideration of any 
concurrent resolution on the budget for fiscal year 1988 or fiscal 
year 1989, or amendment thereto or conference report thereon, 
if such concurrent resolution or conference report provides, or 
in the case of an amendment if the concurrent resolution as 
changed by the adoption of such amendment would provide for 
deficit reduction from a budget baseline estimate as specified in 
section 251(a)(6) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 for such fiscal year (based on laws in effect 
on January 1 of the calendar year during which the fiscal year 
begins) equal to or greater than the maximum amount of 
unachieved deficit reduction for such fiscal year as specified in 
section 251(a)(3)(A) of such Act. 
"(C) For purposes of the application of subparagraph (B), the 
amount of deficit reduction for a fiscal year provided for in a 
concurrent resolution, or amendment thereto or conference 
' '<-' i' 
report thereon, shall be determined on the basis of estimates 
" 
made by the Committee on the Budget of the House of Rep-
resentatives or of the Senate, as the case may be.". 
(e) SECTION 311(a) POINT OF ORDER IN THE SENATE.— 
(1) Section 311(a) of the Congressional Budget Act of 1974 is 
2 use 642. 
amended by striking out all after "in the Senate," and by 
inserting in lieu thereof the following: "would otherwise result 
in a deficit for such fiscal year that— 
"(A) for fiscal year 1989 or any subsequent fiscal year, exceeds 
the maximum deficit amount specified for such fiscal year in 
section 3(7); and 
"(B) for fiscal year 1988 or 1989, exceeds the amount of the 
;, 
estimated deficit for such fiscal year based on laws and regula-
-.; tions in effect on January 1 of the calendar year in which such 
fiscal year begins as measured using the budget baseline speci-
fied in section 251(a)(6) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 minus $23,000,000,000 for fiscal year 
1988 or $36,000,000,000 for fiscal year 1989; 
except to the extent that paragraph (1) of section 301(i) or section 
304(b), as the case may be, does not apply by reason of paragraph (2) 
of such subsection.". 
(2) Section 254(b)(1)(E) of the Act is amended by inserting 
2 use 904. 
"and for fiscal year 1988 or 1989, exceed the amount of the 
estimated deficit for such fiscal year based on laws and regula-
tions in effect on January 1 of the calendar year in which such 
fiscal year begins as measured using the budget baseline speci-
fied in section 251(a)(6) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 minus $23,000,000,000 for fiscal year 
1988 or $36,000,000,000 for fiscal year 1989;" after "maximum 
deficit amount for such fiscal year,'. 
(f) PRESIDENT'S BUDGET.—Section 1105(f) of title 31, United States 
Code, is amended— 
(1) by redesignating paragraph (3) as paragraph (5); and 
(2) by inserting after paragraph (2) the following new para-
graphs: 
101 STAT. 782 
PUBLIC LAW 100-119—SEPT. 29, 1987 
"(3) The budget transmitted pursuant to subsection (a) for a fiscal 
year shall include a budget baseline estimate made in accordance 
with section 251(a)(6) of the Balanced Budget and Emergency Deficit 
J . 
Control Act of 1985 and using economic and technical assumptions 
consistent with the current services budget submitted under section 
1109 for the fiscal year. If such budget baseline estimate differs from 
the estimate in the current services budget, the President shall 
explain the differences. The budget transmitted pursuant to subsec-
tion (a) for such fiscal year shall include the information required by 
section 251(a)(2) of such Act (other than account-level detail) assum-
ing that the deficit in such budget baseline were the amount esti-
mated by the Director of the Office of Management and Budget on 
August 25 of the calendar year in which the fiscal year begins. 
"(4) Paragraphs (1) and (2) shall not apply with respect to fiscal 
year 1989 if the budget transmitted for such fiscal year provides for 
deficit reduction from a budget baseline deficit for such fiscal year 
(as defined by section 251(a)(6) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 and based on laws in effect on 
January 1,1988) equal to or greater than $36,000,000,000.". 
SEC. 107. SPECIAL RULES FOR MEDICARE PROGRAM. 
42 u s e 1395ww 
(a) TEMPORARY EXTENSION OF PAYMENT POLICIES FOR INPATIENT 
note. 
HOSPITAL SERVICES.— 
.,- 
(1) IN GENERAL.—Notwithstanding any other provision of law, 
with respect to payment for inpatient hospital services under 
section 1886 of the Social Security Act: 
(A) TEMPORARY FREEZE IN PPS HOSPITAL RATES.—For pur-
.'!', 
poses of subsection (d) of such section for discharges occur-
- 
ring during the period beginning on October 1, 1987, and 
ending on November 20,1987 (in this paragraph referred to 
' as the "extension period"), the applicable percentage in-
crease under subsection (bX3)(B) of such section with respect 
to fiscal year 1988 is deemed to be 0 percent. 
(B) TEMPORARY FREEZE IN PAYMENT BASIS.— 
(i) EXTENSION OF BLENDED DRG RATE.—For purposes of 
subsection (d)(1) of such section, the "applicable com-
bined adjusted DRG prospective payment rate" for dis-
charges occurring— 
(I) during the extension period is the rate speci-
fied in subsection (d)(l)(D)(ii) of such section, or 
(II) after such period is the national adjusted 
prospective 
payment 
rate 
determined 
under 
subsection (d)(3) of such section. 
x : j . 
, ' '^ '. 
(ii) EXTENSION OF HOSPITAL-SPECIFIC PAYMENT.—For 
the first 51 days of a hospital cost reporting period 
beginning during fiscal year 1988, payment shall be 
made under clause (ii) (rather than clause (iii)) of 
subsection (d)(1)(A) of such section (subject to clause (i) 
of this subparagraph). 
(C) TEMPORARY FREEZE IN AMOUNTS OF PAYMENT FOR 
'-,: . 
CAPITAL.—For payments attributable to portions of cost 
reporting periods occurring during the extension period, 
..« 
the percent specified in subsection (g)(3)(A)(ii) of such sec-
tion is deemed to be 3.5 percent. 
(D) TEMPORARY FREEZE IN RETURN ON EQUITY REDUC-
oisci 
TIGNS.—For the first 51 days of a cost reporting period 
beginning during fiscal year 1988, subsection (g)(2) of such 
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 783 
'm 
section shall be applied as though the applicable percentage 
were 75 percent. 
(E) 
TEMPORARY FREEZE IN PAYMENTS RATES FOR PPS-
EXEMPT HOSPITALS.—For purposes of payment under subsec-
tion (b) of such section for cost reporting periods beginning 
during fiscal year 1988, with respect to the first 51 days of 
such a period the applicable percentage increase under 
paragraph (3)(B) of such subsection is deemed to be 0 
percent. 
(2) CONTINUATION OF CAPITAL POLICY.—Section 9321(c) of the 
Omnibus Budget Reconciliation Act of 1986 is amended— 
(A) by striking "SEPTEMBER i" in the heading of para-
graph (1) and inserting "NOVEMBER 21", 
(B) in paragraph (1), by striking "September 1, 1987" and 
inserting "November 21, 1987", 
(C) in the second sentence of paragraph (1), by striking 
"before the date of the enactment of this Act", and 
(D) in paragraph (4), by striking "second sentence" and 
all that follows through "operating costs" and inserting 
'* 
"second sentence of section 1886(a)(4) of the Social Security 
Act, from the term 'operating costs", 
(b) FREEZING CERTAIN CHANGES IN MEDICARE PAYMENT REGULA-
TIONS AND POLICIES.— 
(1) IN GENERAL.—Notwithstanding any other provision of law, 
the Secretary of Health and Human Services is not authorized 
to issue after September 18, 1987, and before November 21, 
I; 
1987-
(A) any final regulation that changes the policy with 
,;• 
respect to payment under title XVIII of the Social Security 
Act to providers of service for reasonable costs relating to 
unrecovered costs associated with unpaid deductible and 
coinsurance amounts incurred under such title; 
(B) any final regulation, instruction, or other policy 
>iam 
change which is primarily intended to have the effect of 
slowing down claims processing, or delaying payment of 
claims, under such title; or 
(C) any final regulation that changes the policy under 
such title with respect to payment for a return on equity 
capital for outpatient hospital services. 
^ 
The final regulation of the Health Care Financing Administra-
tion published on September 1, 1987 (52 Federal Register 32920) 
and relating to changes to the return on equity capital provi-
sions for outpatient hospital services is void and of no effect. 
(2) OTHER COST SAVINGS POLICIES.—Notwithstanding any other 
provision of law, except as required to implement specific provi-
sions required under statute, the Secretary of Health and 
Human Services is not authorized to issue in final form, after 
September 18, 1987, and before November 21, 1987, any regula-
tion, instruction, or other policy which is estimated by the 
Secretary to result in a net reduction in expenditures under 
, 
title XVIII of the Social Security Act in fiscal year 1988 of more 
T 
than $50,000,000. Any regulation, instruction, or policy which is 
issued in violation of this paragraph is void and of no effect. 
(3) EXCEPTION.—Paragraphs (1) and (2) shall not be construed 
to apply to any regulation, instruction, or policy required to 
implement the amendment made by section 9311(a) of the 
42 use 1
3
9
5
W
W 
note. 
42 use 1
3
9
5
W
W 
note. 
101 STAT. 784 
PUBLIC LAW 100-119—SEPT. 29, 1987 
Omnibus Budget Reconciliation Act of 1986 (relating to periodi* 
interim payments). 
(c) 
DELAY IN 
ORGAN 
PROCUREMENT REQUIREMENTS.—Section 
42USCl320b-8 
9318(b) of the Omnibus Budget Reconciliation Act of 1986 is 
note. 
amended by striking "October 1, 1987" each place it appears and 
inserting "November 21,1987". 
TITLE II—BUDGET PROCESS REFORM 
2 u s e 621 note. 
SEC. 201. 2-YEAR APPROPRIATIONS. 
It is the sense of the Congress that the Congress should undertake 
an experiment with multiyear authorizations and 2-year appropria-
tions for selected agencies and accounts. An evaluation of the 
efficacy and desirability of such experiment should be conducted at 
the end of the 2-year period. The appropriate committees are di-
rected to develop a plan in consultation with the leadership of the 
House and Senate to implement this experiment. 
2 
use 
9
0
9
. 
SEC. 
202. 
PROHIBITION OF COUNTING AS SAVINGS THE TRANSFER OF 
GOVERNMENT 
ACTIONS 
FROM 
ONE 
YEAR 
TO 
ANOTHER. 
.,>, ,fr. 
. 
f 
(a) IN GENERAL.—Except as otherwise provided in this section, any 
"..• law or regulation that has the effect of transferring an outlay, 
receipt, or revenue of the United States from one fiscal year to an 
adjacent fiscal year shall not be treated as altering the deficit or 
producing net deficit reduction in any fiscal year for purposes of the 
Congressional Budget Act of 1974 and the Balanced Budget and 
Emergency Deficit Control Act of 1985. 
(b) EXCEPTIONS.—Subsection (a) shall not apply if the law making 
the transfer stipulates that such transfer— 
,,,, 
(1) is a necessary (but secondary) result of a significant policy 
change; 
(2) provides for contingencies; or 
(3) achieves savings made possible by changes in program 
requirements or by greater efficiency of operations. 
2 u s e 621 note. 
SEC. 203. FINANCIAL MANAGEMENT REFORM. 
It is the sense of the Congress that the Congress should undertake 
a coordinated effort to identify problems and develop specific rec-
ommendations to reform the financial management systems of the 
United States Government, including consideration of the use of 
generally accepted accounting principles. 
2 u s e 653 note. 
SEC. 204. EXTENSION OF STATE AND LOCAL COST ESTIMATES. 
The State and Local Government Cost Estimate Act of 1981 is 
amended by striking out section 4. 
SEC. 205. EXTRANEOUS PROVISIONS IN THE SENATE. 
(a) 
PROHIBITION OF EXTRANEOUS MATTERS IN RECONCILIATION 
MEASURES IN THE SENATE.—Section 20001 of the Consolidated Omni-
bus Budget Reconciliation Act of 1985, as amended by section 7006 
100 Stat. 1949. 
of the Omnibus Budget Reconciliation Act of 1986, is amended in 
subsection (c) by striking out "January 2, 1988" and inserting in lieu 
thereof "September 30, 1992". 
(b) PROVISIONS CONSIDERED To BE EXTRANEOUS IN THE SENATE.— 
Subsection (d)(1)(A) of such section is amended by inserting before 
the period at the end thereof "; and (E) a provision shall be consid-
PUBLIC LAW 100-119—SEPT. 29, 1987 
101 STAT. 785 
ered to be extraneous if it increases, or would increase, net outlays, 
or if it decreases, or would decrease, revenues during a fiscal year 
after the fiscal years covered by such reconciliation bill or reconcili-
ation resolution, and such increases or decreases are greater than 
outlay reductions or revenue increases resulting from other provi-
sions in such title in such year". 
(c) APPLICATION OF SUBSECTION (a) TO CERTAIN SENATE RESOLU-
TIONS.—Nothing in the amendment made by subsection (a) shall be 
construed as limiting the manner in which S. Res. 286 (99th Con- 
^.^. ... 
gress, 1st session), as amended by S. Res. 509 (99th Congress, 2d 
*"' 
' 
session), shall apply to reconciliation bills and reconciliation resolu-
tions considered on or after the date of the enactment of this joint 
resolution. 
SEC. 206. CODIFICATION OF LAW REGARDING DEFERRAL AUTHORITY. 
(a) PROPOSED DEFERRALS OF BUDGET AUTHORITY.—Section 1013 of 
the Impoundment Control Act of 1974 is amended to read as follows: 
2 use 684. 
"PROPOSED DEFERRALS OF BUDGET AUTHORITY 
>?;us 
"SEC. 1013. (a) TRANSMITTAL OF SPECIAL MESSAGE.—Whenever the 
President of U.S. 
President, the Director of the Office of Management and Budget, the 
head of any department or agency of the United States, or any 
officer or employee of the United States proposes to defer any 
budget authority provided for a specific purpose or project, the 
j^j.^ 
;: j 
President shall transmit to the House of Representatives and the 
Senate a special message specifying— 
"(1) the amount of the budget authority proposed to be de-
ferred; 
"(2) any account, department, or establishment of the Govern-
ment to which such budget authority is available for obligation, 
and the specific projects or governmental functions involved; 
"(3) the period of time during which the budget authority is 
proposed to be deferred; 
"(4) the reasons for the proposed deferral, including any legal 
authority invoked to justify the proposed deferral; 
"(5) to the maximum extent practicable, the estimated fiscal, 
economic, and budgetary effect of the proposed deferral; and 
"(6) all facts, circumstances, and considerations relating to or 
bearing upon the proposed deferral and the decision to effect 
the proposed deferral, including an analysis of such facts, cir-
cumstances, and considerations in terms of their application to 
any legal authority, including specific elements of legal author-
ity, invoked to justify such proposed deferral, and to the maxi-
mum extent practicable, the estimated effect of the proposed 
deferral upon the objects, purposes, and programs for which the 
budget authority is provided. 
c 5 3S > 
A special message may include one or more proposed deferrals of 
budget authority. A deferral may not be proposed for any period of 
time extending beyond the end of the fiscal year in which the special 
message proposing the deferral is transmitted to the House and the 
Senate. 
"(b) CONSISTENCY WITH LEGISLATIVE POLICY.—Deferrals shall be 
permissible only— 
"(1) to provide for contingencies; 
"(2) to achieve savings made possible by or through changes in 
requirements or greater efficiency of operations; or 
101 STAT. 786 
PUBLIC LAW 100-119—SEPT. 29, 1987 
"(3) as specifically provided by law. 
No officer or employee of the United States may defer any budget 
authority for any other purpose. 
"(c) EXCEPTION.—The provisions of this section do not apply to any 
budget authority proposed to be rescinded or that is to be reserved 
as set forth in a special message required to be transmitted under 
section 1012.". 
0?) CONFORMING AMENDMENT.—The first sentence of section 1016 
2 use 687. 
of the Impoundment Control Act of 1974 is amended by striking out 
"under section 1012(b) or 1013(b)" and by inserting in lieu thereof 
"under this title", 
(c) REAFFIRMATION.—Sections 1015 and 1016 of the Impoundment 
2 use 686 note. 
Control Act of 1974 are reaffirmed. 
SEC. 207. CLARIFICATION OF CONGRESSIONAL INTENT REGARDING 
RESCISSION AUTHORITY. 
2 use 683. 
Section 1012(b) of the Impoundment Control Act of 1974 is 
amended by adding at the end thereof the following: "Funds made 
available for obligation under this procedure may not be proposed 
• j 
i ->j; 
for rescission again.". 
SEC. 208. ECONOMIC AND TECHNICAL ASSUMPTIONS. 
(a) POINT OF ORDER.—Section 301(g) of the Congressional Budget 
2 use 632. 
Act of 1974 is amended to read as follows: 
"(g) ECONOMIC ASSUMPTIONS.— 
"(1) It shall not be in order in the Senate to consider any 
concurrent resolution on the budget for a fiscal year, or any 
amendment thereto, or any conference report thereon, that sets 
forth amounts and levels that are determined on the basis of 
more than one set of economic and technical assumptions. 
"(2) The joint explanatory statement accompanying a con-
ference report on a concurrent resolution on the budget shall 
set forth the common economic assumptions upon which such 
joint statement and conference report are based, or upon which 
any amendment contained in the joint explanatory statement to 
be proposed by the conferees in the case of technical disagree-
ment, is based. 
"(3) Subject to periodic reestimation based on changed eco-
nomic conditions or technical estimates, determinations under 
titles III and IV of the Congressional Budget Act of 1974 shall be 
based 
upon 
such 
common 
economic 
and 
technical 
assumptions.". 
O
b
) APPUCATION OF SECTION 301(g) POINT OF ORDER TO REVISIONS 
OF CONCURRENT RESOLUTIONS ON THE BUDGET.—Section 304 of the 
2 use 635. 
Congressional Budget Act of 1974 is amended by inserting at the end 
thereof the following: 
"(c) ECONOMIC ASSUMPTIONS.—The provisions of section 301(g) 
shall apply with respect to concurrent resolutions on the budget 
under this section (and amendments thereto and conference reports 
thereon) in the same way they apply to concurrent resolutions on 
the budget under such section 301(g) (and amendments thereto and 
conference reports thereon).". 
PUBLIC LAW 100-119—SEI>T. 29, 1987 
101 STAT. 787 
SEC. 209. CLARIFICATION OF CONGRESSIONAL INTENT REGARDING TIME 
LIMITS FOR CONFERENCE REPORTS ON CONCURRENT RESO-
LUTIONS ON THE BUDGET. 
Section 305(c)(2) of the Congressional Budget Act of 1974 is 2 USC 636, 
amended by inserting "and all amendments in disagreement, and all 
amendments thereto, and debatable motions and appeals in connec-
tion therewith" after "budget,". 
SEC. 
2
1
0
. 
APPEALS 
OF 
CERTAIN 
RULINGS 
IN 
THE 
SENATE. 
(a) IN GENERAL.—Section 271 of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended by redesignating 
2 USC 901 note, 
subsection (c) as subsection (d) and by inserting after subsection (b) 
the following new subsection: 
"(c) APPEALS OF RULINGS.—An affirmative vote of three-fifths of 
the Members of the Senate, duly chosen and sworn, shall be 
required in the Senate to sustain an appeal of the ruling of the 
Chair on a point of order raised under section 301(i), 302(c), 302(f), 
304(b), 306, 310(d), 310(g), or 311(a) of the Congressional Budget Act 
of 1974.". 
(b) CONFORMING AMENDMENT.—Section 275(b)(2)(D) of such Act is 2 use 901 note, 
amended by striking out "section 271(b)" and inserting in lieu 
thereof "subsections (b) and (c) of section 271". 
SEC. 211. WAIVER OF SECTION 302(c) RELATING TO COMMITTEE ALLOCA-
TIONS. 
Section 271(b) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by inserting "302(c)," after "301(i),". 2 USC 901 note. 
SEC. 212. CREDIT REFORM. 
2 USC 602 note. 
The Congressional Budget Office, in consultation with the General Reports. 
Accounting Office, shall study and report to Congress on Federal Loans, 
direct loan and loan guarantee programs for fiscal year 1987 and 
fiscal year 1988. The report shall be submitted as soon as practicable 
to all congressional committees of appropriate jurisdiction. The 
report shall provide information and recommendations on: (1) more 
accurately measuring the costs to the Federal Government of such 
credit programs, (2) comparing the cost of credit programs to other 
forms of Federal assistance, and (3) improving the allocation of 
resources between credit and other programs. The report shall also 
discuss the considerations involved in establishing a system for 
using the information on the costs of credit programs as part of the 
budget process. 
SEC. 213. EXERCISE OF RULEMAKING POWER. 
2 USC 901 note. 
This Act and the amendments made by this Act, other than those 
relating to the activities of the executive and judicial branches of 
the Government, are enacted by Congress— 
(1) as an exercise of the rulemaking power of the House of 
Representatives and the Senate, respectively, and as such they 
shall be considered as part of the rules of each House, respec-
tively, or of that House to which they specifically apply, and 
such rules shall supersede other rules only to the extent that 
they are inconsistent therewith; and 
101 STAT. 788 
PUBLIC LAW 100-119—SEPT. 29, 1987 
•u,:i 
•- 
(2) with full recognition of the constitutional right of either 
I House to change such rules (so far as relating to such House) at 
any time, in the same manner and to the same extent as in the 
case of any other rule of such House. 
Approved September 29, 1987. 
- • • > ' . 
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LEGISLATIVE HISTORY—H.J. Res. 324: 
HOUSE REPORTS: No. 100-313 (Comm. of Conference). 
^ '' 
CONGRESSIONAL RECORD, Vol. 133 (1987): 
June 23, considered and passed House pursuant to H. Con. Res. 93. 
J ^ 
July 21, 23, 29-31, considered and passed Senate, amended. 
Aug. 4, House disagreed to Senate amendments. 
Sept. 22, House agreed to conference report. 
Sept. 23, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 23 (1987): 
Sept. 29, Presidential statement and remarks.