Balanced Budget and Emergency Deficit Control Act of 1985
PL 99-177 (H.J.Res.372), enacted 12/12/1985

PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1037 
*Public Law 99-177 
99th Congress 
Joint Resolution 
Dec. 12, 1985 
[H.J. Res. 372] 
Ante, p. 814. 
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 "$1,847,800,000,000, or $2,078,700,000,000 on and after 
October 1,1985,". 
SEC. 2. MINIMUM CORPORATE TAX BY CORPORATIONS. 
(a) Notwithstanding any other provision of this joint resolution. Report. 
the Senate Committee on Finance is directed to report to the Senate 
by July 1, 1986, legislation providing for payment of an alternative 
minimum corporate tax by corporations on the broadest feasible 
definition of income to assure that all of those with economic income 
pay their fair share of taxes: Provided, That said alternative mini- Effective date. 
mum corporate tax shall take effect for corporate tax years 
commencing on or after October 1, 1986. The revenue raised by this 
tax shall be applied to reduce the Federal deficit. 
(b) Notwithstanding any other provision of this joint resolution. Report. 
the Committee on Ways and Means is directed to report to the 
House of Representatives legislation providing for pa3maent of an 
alternative minimum corporate tax by corporations based upon the 
broadest feasible definition of income to assure tiiat all of those with 
economic income pay their fair share of taxes: Provided, That, the 
Committee on Ways and Means shall report such legislation prior to 
October 1,1986. 
SEC. 3. ACHILLE LAURO HUACKING. 
(a) The Senate finds that— 
(1) the four men identified as the hijackers of the Achille 
Lauro were responsible for brutally murdering an innocent 
American citizen, Leon Klinghoffer, and for terrorizing hun-
dreds of innocent crew members and passengers for two days; 
(2) the United States urges all countries to aid in the swift 
apprehension, prosecution, and punishment of the 
terrorists; 
and 
(3) the United States should not tolerate any country provid-
ing safe harbor or safe passage to the terrorists. 
(b) It is the sense of the Senate that— 
(1) the United States demands that no country provide safe 
harbor or safe passage to these terrorists; 
(2) the United States expects full cooperation of all countries 
in the apprehension, prosecution, and punishment of these 
terrorists; 
(3) the United States cannot condone the release of terrorists 
or the making of concessions to terrorists; and 
(4) the United States identify those individuals responsible for 
the seizure of the Achille Lauro and the cold-blooded murder of 
Vessels. 
Terrorism. 
Leon 
Klinghoffer. 
*Note: The printed text of Public Law 99-177 is a reprint of the hand enrollment, 
signed by the President on December 12, 1985. 
99 STAT. 1038 
PUBLIC LAW 99-177—DEC. 12, 1985 
Balanced Budget 
and Emergency 
Deficit Control 
Act of 1985. 
2 u s e 901 note. 
Leon Klinghoffer, as well as those countries and groups that aid 
and abet such terrorist activities, and take the strongest meas-
ures to ensure that those responsible for this brutal act against 
an American citizen are brought to justice. 
TITLE II—DEFICIT REDUCTION PROCEDURES 
SEC. 200. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This title may be cited as the "Balanced Budget 
and Emergency Deficit Control Act of 1985". 
(b) TABLE OF CONTENTS.— 
Sec. 200. Short title and table of contents. 
PART A—CONGRESSIONAL BUDGET PROCESS 
Subpart I—Congressional Budget 
Sec. 201. Congressional budget. 
Subpart II—Amendments to Title IV of the Congressional Budget Act of 1974 
Sec. 211. New spending authority. 
Sec. 212. Credit authority. 
Sec. 213. Description by Congressional Budget Office. 
Sec. 214. General Accounting Office study; off-budget agencies; member user group. 
Subpart III—Additional Provisions to Improve Budget Procedures 
Sec. 221. Congressional Budget Office. 
Sec. 222. Current services budget for congressional budget purposes. 
Sec. 223. Study of off-budget agencies. 
Sec. 224. Changes in functional categories. 
Sec. 225. Jurisdiction of Committee on Government Operations. 
Sec. 226. Continuing study of congressional budget process. 
Sec. 227. Early election of committees of the House. 
Sec. 228. Rescissions and transfers in appropriation bills. 
Subpart IV—Technical and Conforming Amendments 
Sec. 231. Table of contents. 
Sec. 232. Additional technical and conforming amendments. 
PART B—BUDGET SUBMITTED BY THE PRESIDENT 
Sec. 241. Submission of President's budget; maximum deficit amount may not be 
exceeded. 
Sec. 242. Supplemental budget estimates and changes. 
PART C—EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM 
DEFICIT AMOUNT 
Sec. 251. Reporting of excess deficits. 
Sec. 252. Presidential order. 
Sec. 253. Compliance report by Comptroller General. 
Sec. 254. Congressional action. 
Sec. 255. Exempt programs and activities. 
Sec. 256. Exceptions, limitations, and special rules. 
Sec. 257. Definitions. 
PART D—BUDGETARY TREATMENT OF SOCIAL SECURITY TRUST FUNDS 
Sec. 261. Treatment of trust funds. 
PART E—MISCELLANEOUS AND RELATED PROVISIONS 
Sec. 271. Waivers and suspensions; rulemaking powers. 
Sec. 272. Restoration of trust fund investments. 
Sec. 273. Revenue estimates. 
Sec. 274. Judicial review. 
Sec. 275. Effective dates. 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1039 
PART A—CONGRESSIONAL BUDGET PROCESS 
Subpart I—Congressional Budget 
SEC. 201. CONGRESSIONAL BUDGET. 
(a) DEFINITIONS.— 
(1) Section 3 of the Congressional Budget and Impoundment 
2 USC 622. 
Control Act of 1974 is amended by adding at the end thereof the 
following new paragraphs: 
"(6) The term 'deficit' means, with respect to any fiscal year, 
the amount by which total budget outlays for such fiscal year 
exceed total revenues for such fiscal year. In calculating the 
deficit for purposes of comparison with the maximum deficit 
amount under the Balanced Budget and Emergency Deficit 
Control Act of 1985 and in calculating the excess deficit for Ante, p. 1038. 
purposes of sections 251 and 252 of such Act (notwithstanding Post, pp. 1063, 
section 710(a) of the Social Security Act), for any fiscal year, the 
42 use 911 
receipts of the Federal Old-Age and Survivors Insurance Trust 
Fund and the Federal Disability Insurance Trust Fund for such 
fiscal year and the taxes payable under sections 1401(a), 3101(a), 
and 3111(a) of the Internal Revenue Code of 1954 during such 26 USC 1401, 
fiscal year shall be included in total revenues for such fiscal 
^^oi- ^m 
year, and the disbursements of each such Trust Fund for such 
fiscal year shall be included in total budget outlays for such 
fiscal year. Notwithstanding £my other provision of law except 
to the extent provided by section 710(a) of the Social Security 
Act, the receipts, revenues, disbursements, budget authority, 42 use 9ii. 
and outlays of each off-budget Federal entity for a fiscal year 
shall be included in total budget authority, total budget outlays, 
and total revenues and the amounts of budget authority and 
outlays set forth for each major functional category, for such 
fiscal year. Amounts paid by the Federal Financing Bank for 
the purchase of loans made or guaranteed by a department, 
agency, or instrumentality of the Government of the United 
States shall be treated as outlays of such department, agency, or 
instrumentality. 
"(7) The term 'maximum deficit amount' means— 
"(A) with respect to the fiscal year beginning October 1, 
1985, $171,900,000,000; 
"(B) with respect to the fiscal year beginning October 1, 
1986, $144,000,000,000; 
"(C) with respect to the fiscal year beginning October 1, 
1987, $108,000,000,000; 
"(D) with respect to the fiscal year beginning October 1, 
1988, $72,000,000,000; 
"(E) with respect to the fiscal year beginning October 1, 
1989, $36,000,000,000; and 
"(F) with respect to the fiscal year beginning October 1, 
1990, zero. 
"(8) The term 'off-budget Federal entity' means any entity 
(other than a privately-owned Government-sponsored entity)— 
"(A) which is established by Federal law, and 
"(B) the receipts and disbursements of which are required 
by law to be excluded from the totals of— 
99 STAT. 1040 
PUBLIC LAW 99-177—DEC. 12, 1985 
"(i) the budget of the United States Government 
submitted by the President pursuant to section 1105 of 
title 31, United States Code, or 
"(ii) the budget adopted by the Congress pursuant to 
Infra. 
title III of this Act. 
"(9) The term 'entitlement authority' means spending author-
Post, p. 1056. 
ity described by section 401(cX2XC). 
"(10) The term 'credit authority' means authority to incur 
direct loan obligations or to incur primary loan guarantee 
commitments.". 
2 use 622. 
(2) Paragraph (2) of section 3 of the Congressional Budget 
and Impoundment Control Act of 1974 is amended by inserting 
before the comma the following: "or to collect offsetting 
receipts.". 
Qa) CONGRESSIONAL BUDGET PROCESS.—Title III of the Congres-
sional Budget Act of 1974 is amended to read as follows: 
"TITLE m—CONGRESSIONAL BUDGET 
PROCESS 
2 u s e 631. 
President of U.S. 
Report. 
Report. 
Report. 
2 u s e 632. 
TIMETABLE 
"SEC. 300. The timetable with respect to the congressional budget 
process for any fiscal year is as follows: 
"On or before: 
Action to be completed: 
First Monday after January 3 
President submits his budget. 
February 15 
Congressional Budget Office submits 
report to Budget Gdrnmittees. 
February 25 
Committees submit views and estimates 
to Budget Committees. 
April 1 
Senate Budget Committee reports con-
current resolution on the budget. 
April 15 
Congress completes action on concur-
rent resolution on the budget. 
May 15 
Annual appropriation bills may be con-
sidered in the House. 
June 10 
House Appropriations Committee re-
ports last annual appropriation bill. 
June 15 
Congress completes action on reconcilia-
tion legislation. 
June 30 
House completes action on annual ap-
propriation bills. 
October 1 
Fiscal year b^ins. 
" A N N U A L ADOPTION OF CONCURRENT RESOLUTION ON THE BUDGET 
"SEC. 
301. (a) CONTENT OF CONCURRENT RESOLUTION ON THE 
BUDGET.—On or before April 15 of each year, the Congress shall 
complete action on a concurrent resolution on the budget for the 
fiscal year beginning on October 1 of such year. The concurrent 
resolution shall set forth appropriate levels for the fiscal year 
beginning on October 1 of such year, and planning levels for each of 
the two ensuing fiscal years, for the following— 
"(1) totals of new budget authority, budget outlays, direct loan 
obligations, and primary loan guarantee commitments; 
"(2) total Federal revenues and the amount, if any, by which 
the aggregate level of Federal revenues should be increased or 
decreased by bills and resolutions to be reported by the appro-
priate committees; 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1041 
"(3) the surplus or deficit in the budget; 
"(4) new budget authority, budget outlays, direct loan obliga-
tions, and primary loan guarantee commitments for each major 
functional category, based on allocations of the total levels set 
forth pursuant to paragraph (1); and 
"(5) the public debt. 
"(b) 
ADDITIONAL MATTERS IN CONCURRENT RESOLUTION.—The 
concurrent resolution on the budget may— 
"(1) set forth, if required by subsection (f), the calendar year 
in which, in the opinion of the Congress, the goals for reducing 
unemployment set forth in section 4(b) of the Emplojmaent Act 
of 1946 should be achieved; 
"(2) include reconciliation directives described in section 310; 
"(3) require a procedure under which all or certain bills or 
resolutions providing new budget authority or new entitlement 
authority for such fiscal year shall not be enrolled until the 
Congress has completed action on any reconciliation bill or 
reconciliation resolution or both required by such concurrent 
resolution to be reported in accordance with section 310(b); and 
"(4) set forth such other matters, and require such other 
procedures, relating to the budget, as may be appropriate to 
carry out the purposes of this Act. 
"(c) CONSIDERATION OF PROCEDURES OR MATTERS WHICH HAVE THE 
EFFECT OF CHANGING ANY RULE OF THE HOUSE OF REPRESENTA-
TIVES.—If the Committee on the Budget of the House of Represent-
atives reports any concurrent resolution on the budget which 
includes any procedure or matter which has the effect of changing 
any rule of the House of Representatives, such concurrent resolution 
shall then be referred to the (Jommittee on Rules with instructions 
to report it within five calendar days (not counting any day on 
which the House is not in session). The Committee on Rules shall 
have jurisdiction to report any concurrent resolution referred to it 
under this paragraph with an amendment or amendments changing 
or striking out any such procedure or matter. 
"(d) VIEWS AND ESTIMATES OF OTHER COMMITTEES.—On or before 
February 25 of each year, each committee of the House of Rep-
resentatives having legislative jurisdiction shall submit to the 
Committee on the Budget of the House and each committee of the 
Senate having legislative jurisdiction shall submit to the Committee 
on the Budget of the Senate its views and estimates (as determined 
by the committee making such submission) with respect to all 
matters set forth in subsections (a) and (b) which relate to matters 
within the jurisdiction or functions of such committee. The Joint 
Economic Committee shall submit to the Committees on the Budget 
of both Houses its recommendations as to the fiscal policy appro-
priate to the goals of the Emplo)rment Act of 1946. Any other 
committee of the House of Representatives or the Senate may 
submit to the Committee on the Budget of its House, and any joint 
committee of the Congress may submit to the Committees on the 
Budget of both Houses, its views and estimates with respect to all 
matters set forth in subsections (a) and (b) which relate to matters 
within its jurisdiction or functions. 
"(e) HEARINGS AND REPORT.—In developing the concurrent resolu-
tion on the budget referred to in subsection (a) for each fiscal year, 
the Committee on the Budget of each House shall hold hearings and 
shall receive testimony from Members of Congress and such appro-
priate representatives of Federal departments suid agencies, the 
15 u s e 1022a. 
Post, p. 1053. 
Reports. 
Report. 
15 u s e 1021 
note. 
99 STAT. 1042 
PUBLIC LAW 99-177—DEC. 12, 1985 
Reports. 
Report. 
Taxes. 
State and local 
governments. 
Post, p. 1044. 
15 u s e 1022a. 
President of U.S. 
Report. 
general public, and national organizations as the committee deems 
desirable. Each of the recommendations as to short-term and 
medium-term goals set forth in the report submitted by the mem-
bers of the Joint Economic Committee under subsection (d) may be 
considered by the Committee on the Budget of each House as part of 
its consideration of such concurrent resolution, and its report may 
reflect its views thereon, including its views on how the estimates of 
revenues and levels of budget authority and outlays set forth in such 
concurrent resolution are designed to achieve any goals it is rec-
ommending. The report accompanying such concurrent resolution 
shall include, but not be limited to— 
"(1) a comparison of revenues estimated by the committee 
with those estimated in the budget submitted by the President; 
"(2) a comparison of the appropriate levels of total budget 
outlays and total new budget authority, total direct loan obliga-
tions, total primary loan guarantee commitments, as set forth 
in such concurrent resolution, with those estimated or re-
quested in the budget submitted by the President; 
"(3) with respect to each major functional category, an esti-
mate of budget outlays and an appropriate level of new budget 
authority for all proposed programs and for all existing pro-
grams (including renewals thereof), with the estimate and level 
for existing programs being divided between permanent author-
ity and funds provided in appropriation Acts, and with each 
such division being subdivided between controllable amounts 
and all other amounts; 
"(4) an allocation of the level of Federal revenues rec-
ommended in the concurrent resolution among the major 
sources of such revenues; 
"(5) the economic assumptions and objectives which underlie 
each of the matters set forth in such concurrent resolution and 
any alternative economic assumptions and objectives which the 
committee considered; 
"(6) projections (not limited to the following), for the period of 
five fiscal years beginning with such fiscal year, of the esti-
mated levels of total budget outlays and total new budget 
authority, the estimated revenues to be received, and the esti-
mated surplus or deficit, if any, for each fiscal year in such 
period, and the estimated levels of tax expenditures (the tax 
expenditures budget) by major functional categories; 
"(7) a statement of any significant changes in the proposed 
levels of Federal assistance to State and local governments; 
"(8) information, data, and comparisons indicating the 
manner in which, and the basis on which, the committee deter-
mined each of the matters set forth in the concurrent resolu-
tion; and 
"(9) allocations described in section 302(a). 
"(f) 
ACHIEVEMENT OF GOALS FOR REDUCING UNEMPLOYMENT.— 
"(1) If, pursuant to section 4(c) of the Employment Act of 1946, 
the President recommends in the Economic Report that the 
goals for reducing unemployment set forth in section 4(b) of 
such Act be achieved in a year after the close of the five-year 
period prescribed by such subsection, the concurrent resolution 
on the budget for the fiscal year beginning after the date on 
which such Economic Report is received by the Congress may 
set forth the year in which, in the opinion of the Congress, such 
goals can be achieved. 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1043 
15 use 1022, 
1022a. 
"(2) After the Congress has expressed its opinion pursuant to Report. 
paragraph (1) as to the year in which the goals for reducing 
unemployment set forth in section 4(b) of the Employment Act 
of 1946 can be achieved, if, pursuant to section 4(e) of such Act, 15 USC 1022a. 
the President recommends in the Economic Report that such 
goals be achieved in a year which is different from the year in 
which the Congress has expressed its opinion that such goals 
should be achieved, either in its action pursuant to paragraph 
(1) or in its most recent action pursuant to this paragraph, the 
concurrent resolution on the budget for the fiscal year begin-
ning after the date on which such Economic Report is received 
by the Congress may set forth the year in which, in the opinion 
of the Congress, such goals can be achieved. 
"(3) It shall be in order to amend the provision of such 
resolution setting forth such year only if the amendment 
thereto also proposes to alter the estimates, amounts, and levels 
(as described in subsection (a)) set forth in such resolution in 
germane fashion in order to be consistent with the economic 
goals (as described in sections 3(aX2) and 4(b) of the Employment 
Act of 1946) which such amendment proposes can be achieved 
by the year specified in such amendment. 
"(g) COMMON E<X)NOMIC ASSUMPTIONS.—The joint explanatory 
statement accompanying a conference report on a concurrent reso-
lution on the budget shall set forth the common economic assump-
tions 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 disagreement is based. 
"(h) BUDGET COMMITTEES CONSULTATION WITH COMMITTEES.—The 
Committee on the Budget of the House of Representatives shall 
consult with the committees of its House having legislative jurisdic-
tion during the preparation, consideration, and enforcement of the 
concurrent resolution on the budget with respect to all matters 
which relate to the jurisdiction or functions of such committees, 
"(i) MAXIMUM DEFICIT AMOUNT MAY NOT BE EXCEEDED.— 
"(IXA) Except as provided in paragraph (2), it shall not be in 
order in either the House of Representatives or the Senate to 
consider any concurrent resolution on the budget for a fiscal 
year under this section, or to consider any amendment to such a 
concurrent resolution, or to consider a conference report on 
such a concurrent resolution, if the level of total budget outlays 
for such fiscal year that is set forth in such concurrent resolu-
tion or conference report exceeds the recommended level of 
Federal revenues set forth for that year by an amount that is 
greater than the maximum deficit amount for such fiscal year 
as determined under section 3(7), or if the adoption of such Ante, p. 1039. 
amendment would result in a level of total budget outlays for 
that fiscal year which exceeds the recommended level of Fed-
eral revenues for that fiscal year, by an amount that is greater 
than the maximum deficit amount for such fiscal year as deter-
mined under section 3(7). 
"(B) In the House of Representatives the point of order estab-
lished under subparagraph (A) with respect to the consideration 
of a conference report or with respect to the consideration of a 
motion to concur, with or without an amendment or amend-
ments, in a Senate amendment, the stage of disagreement 
having been reached, may be waived only by a vote of three-
Report. 
99 STAT. 1044 
PUBLIC LAW 99-177—DEC. 12, 1985 
fifths of the Members present and voting, a quorum being 
present. 
' 
"(2) Paragraph (1) of this subsection shall not apply if a 
declaration of war by the Congress is in effect. 
"COMMITTEE ALLOCATIONS 
2 use 633. 
"SEC. 302. (a) ALLOCATION OF TOTALS.— 
"(1) For the House of Representatives, the joint explanatory 
statement accompanying a conference report on a concurrent 
resolution on the budget shall include an estimated allocation, 
based upon such concurrent resolution as recommended in such 
conference report, of the appropriate levels of total budget 
outlays, total new budget authority, total entitlement authority, 
and total credit authority among each committee of the House 
of Representatives which has jurisdiction over laws, bills and 
resolutions providing such new budget authority, such entitle-
ment authority, or such credit authority. The allocation shall, 
for each committee, divide new budget authority, entitlement 
authority, and credit authority between amounts provided or 
required by law on the date of such conference report (manda-
tory or uncontrollable amounts), and amounts not so provided 
or required (discretionary or controllable amounts), and shall 
make the same division for estimated outlays that would result 
from such new budget authority. 
"(2) For the Senate, the joint explanatory statement accom-
panying a conference report on a concurrent resolution on the 
budget shall include an estimated allocation, based upon such 
concurrent resolution as recommended in such conference 
report, of the appropriate levels of total budget outlays, total 
new budget authority and new credit authority among each 
committee of the House of Representatives and the Senate 
which has jurisdiction over bills and resolutions providing such 
new budget authority. 
"Ot)) REPORTS BY COMMITTEES.—As soon as practicable after a 
concurrent resolution on the budget is agreed to— 
"(1) the Committee on Appropriations of each House shall, 
after consulting with the Committee on Appropriations of the 
other House, (A) subdivide among its subcommittees the alloca-
tion of budget outlays, new budget authority, and new credit 
authority allocated to it in the joint explanatory statement 
accompanying the conference report on such concurrent resolu-
tion, and (B) further subdivide the amount with respect to each 
such subcommittee between controllable amounts and all other 
amounts; and 
"(2) every other committee of the House and Senate to which 
an allocation was made in such joint explanatory statement 
shall, after consulting with the committee or committees of the 
other House to which all or part of its allocation was made, (A) 
subdivide such allocation among its subcommittees or smiong 
programs over which it has jurisdiction, and (B) further sub-
divide the amount with respect to each subcommittee or pro-
gram between controllable amounts and all other amounts. 
Each such committee shall promptly report to its House the subdivi-
sions made by it pursuant to this subsection. 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1045 
"(c) POINT OF ORDER.—It shall not be in order in the House of 
Representatives or the Senate to consider any bill or resolution, or 
amendment thereto, providing— 
"(1) new budget authority for a fiscal year; 
"(2) new spending authority as described in section 401(cX2) Post, p. 1056. 
for a fiscal year; or 
"(3) new credit authority for a fiscal year; 
within the jurisdiction of any committee which has received an 
appropriate allocation of such authority pursuant to subsection (a) 
for such fiscal year, imless and until such committee makes the 
allocation or subdivisions required by subsection (b), in connection 
with the most recently agreed to concurrent resolution on the 
budget for such fiscal year. 
"(d) SUBSEQUENT CONCURRENT RESOLUTIONS.—In the c€ise of a 
concurrent resolution on the budget referred to in section 304, the Post, p. 1047. 
allocations under subsection (a) and the subdivisions under subsec-
tion (b) shall be required only to the extent necessary to take into 
account revisions made in the most recently agreed to concurrent 
resolution on the budget. 
"(e) ALTERATION OF ALLOCATIONS.—At any time after a committee 
Report. 
reports the allocations required to be made under subsection O
t
>
)
, 
such committee may report to its House an alteration of such 
allocations. Any alteration of such allocations must be consistent 
with any actions already taken by its House on legislation within 
the committee's jurisdiction. 
"(f) LEGISLATION SUBJECT TO POINT OF ORDER.— 
"(1) IN THE HOUSE OF REPRESENTATIVES.—After the Congress 
has completed action on a concurrent resolution on the budget 
for a fiscal year, it shall not be in order in the House of 
Representatives to consider any bill, resolution, or amendment 
providing new budget authority for such fiscal year, new entitle-
ment authority effective during such fiscal year, or new credit 
authority for such fiscal year, or any conference report on any 
such bill or resolution, if— 
"(A) the enactment of such bill or resolution as reported; 
"(B) the adoption and enactment of such amendment; or 
"(C) the enactment of such bill or resolution in the form 
recommended in such conference report, 
would cause the appropriate allocation made pursuant to 
subsection (b) for such fiscal year of new discretionary budget 
authority, new entitlement authority, or new credit authority to 
be exceeded. 
"(2) IN THE SENATE.—At any time after the Congress has 
completed action on the concurrent resolution on the budget 
required to be reported under section 301(a) for a fiscal year, it Ante, p. 1040. 
shall not be in order in the Senate to consider any bill or 
resolution (including a conference report thereon), or any 
amendment to a bill or resolution, that provides for budget 
outlays or new budget authority in excess of the appropriate 
allocation of such outlays or authority reported under subsec-
tion (b) in connection with the most recently agreed to concur-
rent resolution on the budget for such fiscal year. 
"(g) DETERMINATIONS BY BUDGET COMMITTEES.—For purposes of 
this section, the levels of new budget authority, spending authority 
as described in section 401(cX2), outlays, and new credit authority Post, p. 1056. 
for a fiscal year shall be determined on the basis of estimates made 
99 STAT. 1046 
PUBLIC LAW 99-177—DEC. 12, 1985 
by the Committee on the Budget of the House of Representatives or 
the Senate, as the case may be. 
"CONCURRENT RESOLUTION ON THE BUDGET MUST BE ADOPTED BEFORE 
LEGISLATION PROVIDING NEW BUDGET AUTHORITY, NEW SPENDING 
AUTHORITY, NEW CREDIT AUTHORITY, OR CHANGES IN REVENUES OR 
THE PUBUC DEBT UMIT IS CONSIDERED 
2 use 634. 
"SEC. 303. (a) IN GENERAL.—It shall not be in order in either the 
House of Representatives or the Senate to consider any bill or 
resolution (or amendment thereto) as reported to the House or 
Senate which provides— 
"(1) new budget authority for a fiscal year; 
"(2) an increase or decrease in revenues to become effective 
during a fiscal year; 
"(3) an increase or decrease in the public debt limit to become 
effective during a fiscal year; 
"(4) new entitlement authority to become effective during a 
fiscal year; or 
"(5) new credit authority for a fiscal year, 
until the concurrent resolution on the budget for such fiscal year 
Ante, p. 1040. 
has been agreed to pursuant to section 301. 
"Qo) EXCEPTIONS.—Subsection (a) does not apply to any bill or 
resolution— 
"(1) providing new budget authority which first becomes 
available in a fiscal year following the fiscal year to which the 
concurrent resolution applies; or 
"(2) increasing or decreasing revenues which first become 
effective in a fiscal year following the fiscal year to which the 
concurrent resolution applies. 
After May 15 of any calendar year, subsection (a) does not apply in 
the House of Representatives to any general appropriation bill, or 
amendment thereto, which provides new budget authority for the 
fiscal year beginning in such calendar year. 
"(c) WAIVER IN THE SENATE.— 
Reports. 
"(1) The Committee of the Senate which reports any bill or 
resolution (or amendment thereto) to which subsection (a) ap-
plies may at or after the time it reports such bill or resolution 
(or amendment), report a resolution to the Senate (A) providing 
for the waiver of subsection (a) with respect to such bill or 
resolution (or amendment), and (B) stating the reasons why the 
waiver is necessary. The resolution shall then be referred to the 
Committee on the Budget of the Senate. That committee shall 
report the resolution to the Senate within 10 days after the 
resolution is referred to it (not counting any day on which the 
Senate is not in session) beginning with the day following the 
day on which it is so referred, accompanied by that committee's 
recommendations and reasons for such recommendations with 
respect to the resolution. If the committee does not report the 
resolution within such 10-day period, it shall automatically be 
discharged from further consideration of the resolution and the 
resolution shall be placed on the calendar. 
"(2) During the consideration of any such resolution, debate 
shall be limited to one hour, to be equally divided between, and 
controlled by, the majority leader and minority leader or their 
designees, and the time on any debatable motion or appeal shall 
be limited to twenty minutes, to be equally divided between, and 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1047 
controlled by, the mover and the manager of the resolution. In 
the event the manager of the resolution is in favor of any such 
motion or appeal, the time in opposition thereto shall be con-
trolled by the minority leader or his designee. Such leaders, or 
either of them, may, from the time under their control on the 
passage of such resolution, allot additional time to any Senator 
during the consideration of any debatable motion or appeal. No 
amendment to the resolution is in order. 
"(3) If, after the Committee on the Budget has reported (or 
been discharged from further consideration of) the resolution, 
the Senate agrees to the resolution, then subsection (a) shall not 
apply with respect to the bill or resolution (or amendment 
thereto) to which the resolution so agreed to applies. 
"PERMISSIBLE REVISIONS OF CONCURRENT RESOLUTIONS ON THE 
BUDGET 
"SEC. 304, (a) IN GENERAL.—At any time after the concurrent 
2 use 635. 
resolution on the budget for a fiscal year has been agreed to 
pursuant to section 301, and before the end of such fiscal year, the Ante, p. 1040. 
two Houses may adopt a concurrent resolution on the budget which 
revises or reaffirms the concurrent resolution on the budget for such 
fiscal year most recently agreed to. 
"(b) MAXIMUM DEFICIT AMOUNT MAY NOT BE EXCEEDED.—The 
provisions of section 301(i) 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(i) 
(and amendments thereto and conference reports thereon). 
"PROVISIONS RELATING TO THE CONSIDERATION OF CONCURRENT 
RESOLUTIONS ON THE BUDGET 
"SEC. 305. (a) PROCEDURE IN HOUSE OF REPRESENTATIVES AFTER 
2 use 636. 
REPORT OF COMMITTEE; DEBATE.— 
"(1) When the Committee on the Budget of the House of 
Representatives has reported any concurrent resolution on the 
budget, it is in order at any time after the fifth day (excluding 
Saturdays, Sundays, and legal holidays) following the day on 
which the report upon such resolution by the Committee on the 
Budget has been available to Members of the House and, if 
applicable, after the first day (excluding Saturdays, Sundays, 
and legal holidays) following the day on which a report upon 
such resolution by the Committee on Rules pursuant to section 
301(c) has been available to Members of the House (even though Ante, p. 1040. 
a previous motion to the same effect has been disagreed to) to 
move to proceed to the consideration of the concurrent resolu-
tion. The motion is highly privileged and is not debatable. An 
amendment to the motion is not in order, and it is not in order 
to move to reconsider the vote by which the motion is agreed to 
or disagreed to. 
"(2) General debate on any concurrent resolution on the 
budget in the House of Representatives shall be limited to not 
more than 10 hours, which shall be divided equally between the 
majority and minority parties, plus such additional hours of 
debate as are consumed pursuant to paragraph (3). A motion 
further to limit debate is not debatable. A motion to recommit 
99 STAT. 1048 
PUBLIC LAW 99-177—DEC. 12, 1985 
the concurrent resolution is not in order, and it is not in order 
to move to reconsider the vote by which the concurrent resolu-
tion is agreed to or disagreed to. 
"(3) Following the presentation of opening statements on the 
concurrent resolution on the budget for a fiscal year by the 
chairman and ranking minority member of the Committee on 
the Budget of the House, there shall be a period of up to four 
hours for debate on economic goals and policies. 
"(4) Only if a concurrent resolution on the budget reported by 
the Committee on the Budget of the House sets forth the 
economic goals (as described in sections 3(a)(2) and 4(b) of the 
15 use 1022, 
Full Employment Act of 1946) which the estimates, amounts, 
1022a. 
and levels (as described in section 301(a)) set forth in such 
Ante, p. 1040. 
resolution are designed to achieve, shall it be in order to offer to 
such resolution an amendment relating to such goals, and such 
amendment shall be in order only if it also proposes to alter 
such estimates, amounts, and levels in germane fashion in order 
to be consistent with the goals proposed in such amendment. 
"(5) Consideration of any concurrent resolution on the budget 
by the House of Representatives shall be in the Committee of 
the Whole, and the resolution shall be considered for amend-
ment under the five-minute rule in accordance with the ap-
plicable provisions of rule XXIII of the Rules of the House of 
Representatives. After the Committee rises and reports the 
resolution back to the House, the previous question shall be 
considered as ordered on the resolution and any amendments 
thereto to final passage without intervening motion; except that 
it shall be in order at any time prior to final passage (notwith-
standing any other rule or provision of law) to adopt an amend-
ment (or a series of amendments) changing any figure or figures 
in the resolution as so reported to the extent necessary to 
achieve mathematical consistency. 
"(6) Debate in the House of Representatives on the conference 
report on any concurrent resolution on the budget shall be 
limited to not more than 5 hours, which shall be divided equally 
between the majority and minority parties. A motion further to 
limit debate is not debatable. A motion to recommit the con-
ference report is not in order, and it is not in order to move to 
reconsider the vote by which the conference report is agreed to 
or disagreed to. 
"(7) Appeals from decisions of the Chair relating to the ap-
plication of the Rules of the House of Representatives to the 
procedure relating to any concurrent resolution on the budget 
shall be decided without debate. 
"(b) PROCEDURE IN SENATE AFTER REPORT OF COMMITTEE; DEBATE; 
AMENDMENTS.— 
"(1) Debate in the Senate on any concurrent resolution on the 
budget, and all amendments thereto and debatable motions and 
appeals in connection therewith, shall be limited to not more 
than 50 hours, except that with respect to any concurrent 
Ante, p. 1047. 
resolution referred to in section 304(a) all such debate shall be 
limited to not more than 15 hours. The time shall be equally 
divided between, and controlled by, the majority leader and the 
minority leader or their designees. 
"(2) Debate in the Senate on any amendment to a concurrent 
resolution on the budget shall be limited to 2 hours, to be 
equally divided between, and controlled by, the mover and the 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1049 
manager of the concurrent resolution, and debate on any 
amendment to an amendment, debatable motion, or appeal 
shall be limited to 1 hour, to be equally divided between, and 
controlled by, the mover and the manager of the concurrent 
resolution, except that in the event the manager of the concur-
rent resolution is in favor of any such amendment, motion, or 
appeal, the time in opposition thereto shall be controlled by the 
minority leader or his designee. No amendment that is not 
germane to the provisions of such concurrent resolution shall be 
received. Such leaders, or either of them, may, from the time 
under their control on the passage of the concurrent resolution, 
allot additional time to any Senator during the consideration of 
any amendment, debatable motion, or appeal. 
"(3) Following the presentation of opening statements on the 
concurrent resolution on the budget for a fiscal year by the 
chairman and ranking minority member of the Committee on 
the Budget of the Senate, there shall be a period of up to four 
hours for debate on economic goals and policies. 
"(4) Subject to the other limitations of this Act, only if a 
concurrent resolution on the budget reported by the Committee 
on the Budget of the Senate sets forth the economic goals (as 
described in sections 3(aX2) and 4(b) of the Employment Act of 
1946) which the estimates, amounts, and levels (as described in 
15 use 1022, 
section 301(a)) set forth in such resolution are designed to I022a. 
achieve, shall it be in order to offer to such resolution an '^"^^' P ^"^" 
amendment relating to such goals, and such amendment shall 
be in order only if it also proposes to alter such estimates, 
amounts, and levels in germane fashion in order to be consist-
ent with the goals proposed in such amendment. 
"(5) A motion to further limit debate is not debatable. A 
motion to recommit (except a motion to recommit with instruc-
tions to report back within a specified number of days, not to 
exceed 3, not counting any day on which the Senate is not in 
session) is not in order. Debate on any such motion to recommit 
shall be limited to 1 hour, to be equally divided between, and 
controlled by, the mover and the manager of the concurrent 
resolution. 
"(6) Notwithstanding any other rule, an amendment or series 
of amendments to a concurrent resolution on the budget pro-
posed in the Senate shall always be in order if such amendment 
or series of amendments proposes to change any figure or 
figures then contained in such concurrent resolution so as to 
make such concurrent resolution mathematically consistent or 
so as to maintain such consistency. 
"(c) ACTION ON CONFERENCE REPORTS IN THE SENATE.— 
"(1) The conference report on any concurrent resolution on 
the budget shall be in order in the ^ n a t e at any time after the 
third day (excluding Saturdays, Sunda3rs, and l^al holidays) 
following the day on which such conference report is reported 
and is available to Members of the Senate. A motion to proceed 
to the consideration of the conference report may be made even 
though a previous motion to the same effect has been disagreed 
to. 
"(2) During the consideration in the Senate of the conference 
report on any concurrent resolution on the budget, debate shall 
be limited to 10 hours, to be equally divided between, and 
controlled by, the majority leader and minority leader or their 
99 STAT. 1050 
PUBLIC LAW 99-177—DEC. 12, 1985 
designees. Debate on any debatable motion or appeal related to 
the conference report shall be limited to 1 hour, to be equally 
divided between, and controlled by, the mover and the manager 
of the conference report. 
"(3) Should the conference report be defeated, debate on any 
request for a new conference and the appointment of conferees 
shall be limited to 1 hour, to be equally divided between, and 
controlled by, the manager of the conference report and the 
minority leader or his designee, and should any motion be made 
to instruct the conferees before the conferees are named, debate 
on such motion shall be limited to one-half hour, to be equally 
divided between, and controlled by, the mover and the manager 
of the conference report. Debate on any amendment to any such 
instructions shall be limited to 20 minutes, to be equally divided 
between and controlled by the mover and the manager of the 
conference report. In all cases when the manager of the con-
ference report is in favor of any motion, appeal, or amendment, 
the time in opposition shall be under the control of the minority 
leader or his designee. 
"(4) In any case in which there are amendments in disagree-
ment, time on each amendment shall be limited to 30 minutes, 
to be equally divided between, and controlled by, the manager of 
the conference report and the minority leader or his designee. 
No amendment that is not germane to the provisions of such 
amendments shall be received. 
"(d) REQUIRED ACTION BY CONFERENCE COMMITTEE.—If at the end 
of 7 days (excluding Saturdays, Sundays, and legal holidays) after 
the conferees of both Houses have been appointed to a committee of 
conference on a concurrent resolution on the budget, the conferees 
are unable to reach agreement with respect to all matters in dis-
agreement between the two Houses, then the conferees shall submit 
to their respective Houses, on the first day thereafter on which their 
House is in session— 
Report. 
"(1) a conference report recommending those matters on 
which they have agreed and reporting in disagreement those 
matters on which they have not agreed; or 
Report. 
"(2) a conference report in disagreement, if the matter in 
disagieement is an amendment which strikes out the entire text 
of the concurrent resolution and inserts a substitute text. 
"(e) 
CONCURRENT 
RESOLUTION 
MUST BE Ck)NSiSTENT IN THE 
SENATE.—It shall not be in order in the Senate to vote on the 
question of agreeing to— 
"(1) a concurrent resolution on the budget unless the figures 
then contained in such resolution are mathematically consist-
ent; or 
Report. 
"(2) a conference report on a concurrent resolution on the 
budget unless the figures contained in such resolution, as rec-
ommended in such conference report, are mathematically 
consistent. 
"LEGISLATION DEAUNG WITH CONGRESSIONAL BUDGET MUST BE 
HANDLED BY BUDGET COMMITTEES 
2 use 637. 
"SEC. 306. No bill or resolution, and no amendment to any bill or 
resolution, dealing with any matter which is within the jurisdiction 
of the Committee on the Budget of either House shall be considered 
in that House unless it is a bill or resolution which has been 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1051 
reported by the Committee on the Budget of that House (or from the 
consideration of which such committee has been discharged) or 
unless it is an amendment to such a bill or resolution. 
HOUSE COMMITTEE ACTION ON ALL APPROPRIATION BILLS TO BE 
COMPLETED BY JUNE 10 
"SEC. 307. On or before June 10 of each year, the Committee on 
Report. 
Appropriations of the House of Representatives shall report annual 
2 USC 638. 
appropriation bills providing new budget authority under the juris-
diction of all of its subcommittees for the fiscal year which begins on 
October 1 of that year. 
"REPORTS, SUMMARIES, AND PROJECTIONS OF CONGRESSIONAL BUDGET 
ACTIONS 
"SEC. 308. (a) REPORTS ON LEGISLATION PROVIDING NEW BUDGET 
2 use 639. 
AUTHORITY, NEW SPENDING AUTHORITY, OR NEW CREDIT AUTHORITY, 
O
R PROVIDING AN INCREASE OR DECREASE IN REVENUES OR TAX 
EXPENDITURES.— 
"(1) Whenever a committee of either House reports to its 
House a bill or resolution, or committee amendment thereto, 
providing new budget authority (other than continuing appro-
priations), new spending authority described in section 401(c)(2), Post, p. 1056. 
or new credit authority, or providing an increcise or decrease in 
revenues or tax expenditures for a fiscal year, the report accom-
panying that bill or resolution shall contain a statement, or the 
committee shall make available such a statement in the case of 
an approved committee amendment which is not reported to its 
House, prepared after consultation with the Director of the 
Congressional Budget Office— 
"(A) comparing the levels in such measure to the appro-
priate allocations in the reports submitted under section 
302(b) for the most recently agreed to concurrent resolution 
Ante, p. 1044. 
on the budget for such fiscal year; 
"(B) including an identification of any new spending 
authority described in section 401(c)(2) which is contained 
in such measure and a justification for the use of such 
financing method instead of annual appropriations; 
"(C) containing a projection by the Congressional Budget 
Office of how such measure will affect the levels of such 
budget authority, budget outlays, spending authority, reve-
nues, tax expenditures, direct loan obligations, or primary 
loan guarantee commitments under existing law for such 
fiscal year and each of the four ensuing fiscal years, if 
timely submitted before such report is filed; and 
"(D) containing an estimate by the Congressional Budget 
State and local 
Office of the level of new budget authority for assistance to governments. 
State and local governments provided by such measure, if 
timely submitted before such report is filed. 
"(2) Whenever a conference report is filed in either House and 
such conference report or any amendment reported in disagree-
ment or any amendment contained in the joint statement of 
managers to be proposed by the conferees in the case of tech-
nical disagreement on such bill or resolution provides new 
budget authority (other than continuing appropriations), new 
spending authority described in section 401(c)(2), or new credit 
99 STAT. 1052 
PUBLIC LAW 99-177—DEC. 12, 1985 
authority, or provides an increase or decrease in revenues for a 
fiscal year, the statement of managers accompanying such con-
ference report shall contain the information described in para-
graph (1), if available on a timely basis. If such information is 
not available when the conference report is filed, the committee 
shall make such information available to Members as soon as 
practicable prior to the consideration of such conference report. 
"(b) 
UP-TO-DATE 
TABULATIONS 
OF 
CONGRESSIONAL 
BUDGET 
ACTION.— 
"(1) The Director of the Congressional Budget Office shall 
issue to the committees of the House of Representatives and the 
Senate reports on at least a monthly basis detailing and tabulat-
ing the progress of congressional action on bills and resolutions 
providing new budget authority, new spending authority de-
Post, p. 1056. 
scribed in section 401(cX2), or new credit authority, or providing 
an increase or decrease in revenues or tax expenditures for a 
fiscal year. Such reports shall include but are not limited to an 
up-to-date tabulation comparing the appropriate aggregate and 
functional levels (including outlays) included in the most re-
cently adopted concurrent resolution on the budget with the 
levels provided in bills and resolutions reported by committees 
or adopted by either House or by the Congress, and with the 
levels provided by law for the fiscal year preceding such fiscal 
year. 
"(2) The Committee on the Budget of each House shall make 
available 
to 
Members 
of 
its 
House 
summary 
budget 
scorekeeping reports. Such reports— 
"(A) shall be made available on at least a monthly basis, 
but in any case frequently enough to provide Members of 
each House an accurate representation of the current 
status of congressional consideration of the budget; 
"(B) shall include, but are not limited to, summaries of 
tabulations provided under subsection (bXD; and 
"(C) shall be based on information provided under subsec-
tion (b)(1) without substantive revision. 
The chairman of the Committee on the Budget of the House of 
Representatives shall submit such reports to the Speaker. 
(c) FIVE-YEAR PROJECTION OP CONGRESSIONAL BUDGET ACTION.— 
As soon as practicable after the beginning of each fiscal year, the 
Director of the Congressional Budget Office shall issue a report 
projecting for the period of 5 fiscal years beginning with such fiscal 
year— 
"(1) total new budget authority and total budget outlays for 
each fiscal year in such period; 
"(2) revenues to be received and the major sources thereof, 
and the surplus or deficit, if any, for each fiscal year in such 
period; 
Taxes. 
"(3) tax expenditures for each fiscal year in such period; 
"(4) entitlement authority for each fiscal year in such period; 
and 
"(5) credit authority for each fiscal year in such period. 
"HOUSE APPROVAL OF REGULAR APPROPRIATION BILLS 
2 use 640. 
"SEC. 309. It shall not be in order in the House of Representatives 
to consider any resolution providing for an adjournment period of 
more than three calendar days during the month of July until the 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1053 
House of Representatives has approved annual appropriation bills 
providing new budget authority under the jurisdiction of all the 
subcommittees of the Committee on Appropriations for the fiscal 
year beginning on October 1 of such year. For purposes of this 
section, the chairman of the Committee on Appropriations of the 
House of Representatives shall periodically advise the Speaker as to 
changes in jurisdiction among its various subcommittees. 
RECONCILIATION 
"SEC. 
310. 
(a) 
INCLUSION OF RECONCIUATION DIRECTIVES IN 
2 use 641. 
CONCURRENT RESOLUTIONS ON THE BUDGET.—A concurrent resolu-
tion on the budget for any fiscal year, to the extent necessary to 
effectuate the provisions and requirements of such resolution, 
shall— 
"(1) specify the total amount by which— 
"(A) new budget authority for such fiscal year; 
"(B) budget authority initially provided for prior fiscal 
years; 
"(C) new entitlement authority which is to become effec-
tive during such fiscal year; and 
"(D) credit authority for such fiscal year, 
contained in laws, bills, and resolutions within the jurisdiction 
of a committee, is to be changed and direct that committee to 
determine and recommend changes to accomplish a change of 
such total amount; 
"(2) specify the total amount by which revenues are to be 
changed and direct that the committees having jurisdiction to 
determine and recommend changes in the revenue laws, bills, 
and resolutions to accomplish a change of such total amount; 
"(3) specify the amounts by which the statutory limit on the 
public debt is to be changed and direct the committee having 
jurisdiction to recommend such change; or 
"(4) specify and direct any combination of the matters de-
scribed in paragraphs (1), (2), and (3). 
"(b) LEGISLATIVE PROCEDURE.—If a concurrent resolution contain-
ing directives to one or more committees to determine and 
recommend changes in laws, bills, or resolutions is agreed to in 
accordance with subsection (a), and— 
"(1) only one committee of the House or the Senate is directed 
Report. 
to determine and recommend changes, that committee shall 
promptly make such determination and recommendations and 
report to its House reconciliation legislation containing such 
recommendations; or 
"(2) more than one committee of the House or the Senate is 
Report. 
directed to determine and recommend changes, each such 
committee so directed shall promptly make such determination 
and recommendations and submit such recommendations to the 
Committee on the Budget of its House, which, upon receiving all 
such recommendations, shall report to its House reconciliation 
legislation carrying out all such recommendations without any 
substantive revision. 
For purposes of this subsection, a reconciliation resolution is a 
concurrent resolution directing the Clerk of the House of Represent-
atives or the Secretary of the Senate, as the case may be, to make 
specified changes in bills and resolutions which have not been 
enrolled. 
99 STAT. 1054 
PUBLIC LAW 99-177—DEC. 12, 1985 
"(c) COMPLIANCE WITH RECONCILIATION DIRECTIONS.—Any commit-
tee of the House of Representatives or the Senate that is directed, 
pursuant to a concurrent resolution on the budget, to determine and 
recommend changes of the type described in paragraphs (1) and (2) 
of subsection (a) with respect to laws within its jurisdiction, shall be 
deemed to have complied with such directions— 
"(l)if-
"(A) the amount of the changes of the type described in 
paragraph (1) of such subsection recommended by such 
committee do not exceed or fall below the amount of the 
changes such committee was directed by such concurrent 
resolution to recommend under such paragraph by more 
than 20 percent of the total of the amounts of the changes 
such committee was directed to make under paragraphs (1) 
and (2) of such subsection, and 
"(B) the amount of the changes of the type described in 
paragraph (2) of such subsection recommended by such 
committee do not exceed or fall below the amount of the 
changes such committee was directed by such concurrent 
resolution to recommend under that paragraph by more 
than 20 percent of the total of the amounts of the changes 
such committee was directed to make under paragraphs (1) 
and (2) of such subsection; and 
"(2) if the total amount of the changes recommended by such 
committee is not less than the total of the amounts of the 
changes such committee was directed to make under para-
graphs (1) and (2) of such subsection. 
"(d) LIMITATION ON AMENDMENTS TO RECONCILIATION BILLS AND 
RESOLUTIONS.— 
"(1) It shall not be in order in the House of Representatives to 
consider any amendment to a reconciliation bill or reconcili-
ation resolution if such amendment would have the effect of 
increasing any specific budget outlays above the level of such 
outlays provided in the bill or resolution (for the fiscal years 
covered by the reconciliation instructions set forth in the most 
recently agreed to concurrent resolution on the budget), or 
would have the effect of reducing any specific Federal revenues 
below the level of such revenues provided in the bill or resolu-
tion (for such fiscal years), unless such amendment makes at 
least an equivalent reduction in other specific budget outlays, 
an equivalent increase in other specific Federal revenues, or an 
equivalent combination thereof (for such fiscal years), except 
that a motion to strike a provision providing new budget author-
ity or new entitlement authority may be in order. 
"(2) It shall not be in order in the Senate to consider any 
amendment to a reconciliation bill or reconciliation resolution if 
such amendment would have the effect of decreasing any spe-
cific budget outlay reductions below the level of such outlay 
reductions provided (for the fiscal years covered) in the rec-
onciliation instructions which relate to such bill or resolution 
set forth in a resolution providing for reconciliation, or would 
have the effect of reducing Federal revenue increases below the 
level of such revenue increases provided (for such fiscal years) 
in such instructions relating to such bill or resolution, unless 
such amendment makes a reduction in other specific budget 
outlays, an increase in other specific Federal revenues, or a 
combination thereof (for such fiscal years) at least equivalent to 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1055 
any increase in outlays or decrease in revenues provided by 
such amendment, except that a motion to strike a provision 
shall always be in order. 
"(3) Paragraphs (1) and (2) shall not apply if a declaration of 
war by the Congress is in effect. 
"(4) For purposes of this section, the levels of budget outlays 
and Federal revenues for a fiscal year shall be determined on 
the basis of estimates made by the Committee on the Budget of 
the House of Representatives or of the Senate, as the case may 
be. 
"(5) The Committee on Rules of the House of Representatives 
may make in order amendments to achieve changes specified by 
reconciliation directives contained in a concurrent resolution on 
the budget if a committee or committees of the House fail to 
submit recommended changes to its Committee on the Budget 
pursuant to its instruction. 
"(e) PROCEDURE IN THE SENATE.— 
"(1) Except as provided in paragraph (2), the provisions of 
section 305 for the consideration in the Senate of concurrent 
Ante, p. 1047. 
resolutions on the budget and conference reports thereon shall 
also apply to the consideration in the Senate of reconciliation 
bills reported under subsection Qji) and conference reports 
thereon. 
"(2) Debate in the Senate on any reconciliation bill reported 
under subsection (b), and all amendments thereto and debatable 
motions and appeals in connection therewith, shall be limited to 
not more than 20 hours. 
"(f) COMPLETION OF RECONCILIATION PROCESS.— 
"(1) IN GENERAL.—Congress shall complete action on any 
Congress. 
reconciliation bill or reconciliation resolution reported under 
subsection (b) not later than June 15 of each year. 
"(2) POINT OF ORDER IN THE HOUSE OF REPRESENTATIVES.—It 
shall not be in order in the House of Representatives to consider 
any resolution providing for an adjournment period of more 
than three calendar days during the month of July until the 
House of Representatives has completed action on the reconcili-
ation legislation for the fiscal year beginning on October 1 of 
the calendar year to which the adjournment resolution pertains, 
if reconciliation legislation is required to be reported by the 
concurrent resolution on the budget for such fiscal year. 
"(g) LIMITATION ON CHANGES TO THE SOCIAL SECURITY ACT.— 
Notwithstanding any other provision of law, it shall not be in order 
in the Senate or the House of Representatives to consider any 
reconciliation bill or reconciliation resolution reported pursuant to a 
concurrent resolution on the budget agreed to under section 301 or Ante, pp. 1044, 
304, or a resolution pursuant to section 2540t)) of the Balanced 
1047. 
Budget and Emergency Deficit Control Act of 1985, or any amend- 
^°^^' P ^"^^ 
ment thereto or conference report thereon, that contains rec-
ommendations with respect to the old-age, survivors, and disability 
insurance program established under title II of the Social Security 
Act. 
42 use 401. 
"NEW BUDGET AUTHORFFY, NEW SPENDING AUTHORITY, AND REVENUE 
LEGISLATION MUST BE WITHIN APPROPRIATE LEVELS 
"SEC. 311. (a) LEGISLATION SUBJECT TO POINT OF ORDER.—Except as 
2 use 642. 
provided by subsection (h\ after the (Dongress has completed action 
99 STAT. 1056 
PUBLIC LAW 99-177—DEC. 12, 1985 
on a concurrent resolution on the budget for a fiscal year, it shall 
not be in order in either the House of Representatives or the Senate 
to consider any bill, resolution, or amendment providing new budget 
authority for such fiscal year, providing new entitlement authority 
effective during such fiscal year, or reducing revenues for such fiscal 
year, or any conference report on any such bill or resolution, if— 
"(1) the enactment of such bill or resolution as reported; 
"(2) the adoption and enactment of such amendment; or 
"(3) the enactment of such bill or resolution in the form 
recommended in such conference report; 
would cause the appropriate level of total new budget authority or 
total budget outlays set forth in the most recently agreed to concur-
rent resolution on the budget for such fiscal year to be exceeded, or 
would cause revenues to be less than the appropriate level of total 
revenues set forth in such concurrent resolution or, in the Senate, 
would otherwise result in a deficit for such fiscal year that exceeds 
the maximum deficit amount specified for such fiscal year in section 
Ante, pp. 1039, 
3(7) (except to the extent that paragraph (1) of section 301(i) or 
1040. 
section 304(b), as the case may be, does not apply by reason of 
Ante, p. 1047. 
paragraph (2) of such subsection). 
"(b) EXCEPTION IN THE HOUSE OF REPRESENTATIVES.—Subsection (a) 
shall not apply in the House of Representatives to any bill, resolu-
tion, or amendment which provides new budget authority or new 
entitlement authority effective during such fiscal year, or to any 
conference report on any such bill or resolution, if— 
"(1) the enactment of such bill or resolution as reported; 
"(2) the adoption and enactment of such amendment; or 
"(3) the enactment of such bill or resolution in the form 
recommended in such conference report, 
would not cause the appropriate allocation of new discretionary 
budget authority or new entitlement authority made pursuant to 
Ante, p. 1044. 
section 302(a) for such fiscal year, for the committee within whose 
jurisdiction such bill, resolution, or amendment falls, to be exceeded. 
"(c) DETERMINATION OF BUDGET LEVELS.—For purposes of this 
section, the levels of new budget authority, budget outlays, new 
entitlement authority, and revenues for a fiscal year shall be deter-
mined on the basis of estimates made by the Committee on the 
Budget of the House of Representatives or of the Senate, as the case 
may be.". 
Subpart II—Amendments to Title IV of the 
Congressional Budget Act of 1974 
SEC. 211. NEW SPENDING AUTHORITY. 
2 use 651. 
Section 401 of the Congressional Budget Act of 1974 is amended to 
read as follows: 
"BILLS PROVIDING NEW SPENDING AUTHORITY 
"SEC. 
401. (a) CONTROLS ON LEGISLATION PROVIDING SPENDING 
AUTHORITY.—It shall not be in order in either the House of 
Representatives or the Senate to consider any bill, resolution, or 
conference report, as reported to its House which provides new 
spending authority described in subsection (c)(2) (A) or (B) (or any 
amendment which provides such new spending authority), unless 
that bill, resolution, conference report, or amendment also provides 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1057 
that such new spending authority as described in subsection (cX2) 
(A) or (B) is to be effective for any fisccd year only to such extent or 
in such amounts as are provided in appropriation Acts. 
"(b) LEGISLATION PROVIDING ENTITLEMENT AUTHORITY.— 
"(1) It shall not be in order in either the House of Representa-
tives or the Senate to consider any bill or resolution which 
provides new spending authority described in subsection (cX2XC) 
(or any amendment which provides such new spending author-
ity) which is to become effective before the first day of the fiscal 
year which begins during the calendar year in which such bill 
or resolution is reported. 
"(2) If any committee of the House of Representatives or the 
Senate reports any bill or resolution which provides new spend-
ing authority described in subsection (cX2XC) which is to become 
effective during a fiscal year and the amount of new budget 
authority which will be required for such fiscal year if such bill 
or resolution is enacted as so reported exceeds the appropriate 
allocation of new budget authority reported under section 302(b) Ante, p. 1044. 
in connection with the most recently agreed to concurrent 
resolution on the budget for such fiscal year, such bill or 
resolution shall then be referred to the Committee on Appro-
priations of that House with instructions to report it, with the 
committee's recommendations, within 15 calendar days (not 
counting any day on which that House is not in session) begin-
ning with the day following the day on which it is so referred. If 
the Committee on Appropriations of either House fails to report 
a bill or resolution referred to it under this paragraph within 
such 15-day period, the committee shall automatically be dis-
charged from further consideration of such bill or resolution 
and such bill or resolution shall be placed on the appropriate 
calendar. 
"(3) The Committee on Appropriations of each House shall 
have jurisdiction to report any bill or resolution referred to it 
under paragraph (2) with an amendment which limits the total 
amount of new spending authority provided in such biU or 
resolution. 
"(c) DEFINITIONS.— 
"(1) For purposes of this section, the term 'new spending 
authority' means spending authority not provided by law on the 
effective date of this Act, including any increase in or addition 
to spending authority provided by law on such date. 
"(2) For purposes of paragraph (1), the term 'spending author-
ity' means authority (whether temporary or permanent)— 
"(A) to enter into contracts under which the United 
States is obligated to make outlays, the budget authority for 
which is not provided in advance by appropriation Acts; 
"(B) to incur indebtedness (other than indebtedness in-
curred under chapter 31 of title 31 of the United States 
C!ode) for the repayment of which the United States is 31 USC 3101 
liable, the budget authority for which is not provided in etseq. 
advance by appropriation Acts; 
"(C) to make pa3nnents (including loans and grants), the 
budget authority for which is not provided for in advance 
by appropriation Acts, to any person or government if, 
under the provisions of the law containing such authority, 
the United States is obligated to make such payments to 
99 STAT. 1058 
PUBLIC LAW 99-177—DEC. 12, 1985 
persons or governments who meet the requirements estab-
lished by such law; 
"(D) to forego the collection by the United States of 
proprietary offsetting receipts, the budget authority for 
which is not provided in advance by appropriation Acts to 
offset such foregone receipts; and 
"(E) to make payments by the United States (including 
loans, grants, and payments from revolving funds) other 
than those covered by subparagraph (A), (B), (C), or (D), the 
budget authority for which is not provided in advance by 
appropriation Acts. 
Such term does not include authority to insure or guarantee the 
repayment of indebtedness incurred by another person or 
government. 
"(d) EXCEPTIONS.— 
"(1) Subsections (a) and (b) shall not apply to new spending 
authority if the budget authority for outlays which will result 
from such new spending authority is derived— 
"(A) from a trust fund established by the Social Security 
42 use 1305. 
Act (as in effect on the date of the enactment of this Act); or 
"(B) from any other trust fund, 90 percent or more of the 
receipts of which consist or will consist of amounts (trans-
ferred from the general fund of the Treasury) equivalent to 
amounts of taxes (related to the purposes for which such 
outlays are or will be made) received in the Treasury under 
26 use 1 et seq. 
specified provisions of the Internal Revenue Code of 1954. 
"(2) Subsections (a) and (b) shall not apply to new spending 
authority which is an amendment to or extension of the State 
31 use 6702. 
and Local Fiscal Assistance Act of 1972, or a continuation of the 
program of fiscal assistance to State and local governments 
provided by that Act, to the extent so provided in the bill or 
resolution providing such authority. 
"(3) Subsections (a) and (b) shall not apply -to new spending 
authority to the extent that— 
Corporation. 
"(A) the outlays resulting therefrom are made by an 
organization which is (i) a mixed-ownership Government 
corporation (as defined in section 201 of the Government 
31 use 9101. 
C!orporation Control Act), or (ii) a wholly owned Govern-
31 use 9101. 
ment corporation (as defined in section 101 of such Act) 
which is specifically exempted by law from compliance with 
any or all of the provisions of that Act, as of the date of 
enactment of the Balanced Budget and Emergency Deficit 
Control Act of 1985; or 
Gifts and 
"(B) the Outlays resulting therefrom consist exclusively of 
property. 
the proceeds of gifts or bequests made to the United States 
for a specific purpose.". 
SEC. 212. CREDIT AUTHORITY. 
2 use 652. 
Section 402 of the Congressional Budget Act of 1974 is amended to 
read as follows: 
LEGISLATION PROVIDING NEW CREDIT AUTHORITY 
"SEC. 402. (a) CONTROLS ON LEGISLATION PROVIDING NEW CREDIT 
AUTHORITY.—It shall not be in order in either the House of Rep-
resentatives or the Senate to consider any bill, resolution, or con-
ference report, as reported to its House, or any amendment which 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1059 
provides new credit authority described in subsection (bXl), unless 
that bill, resolution, conference report, or amendment also provides 
that such new credit authority is to be effective for any fiscal year 
only to such extent or in such amounts as are provided in appropria-
tion Acts. 
"(b) DEFINITION.—For purposes of this Act, the term 'new credit 
authority' means credit authority (as defined in section 3(10) of this 
Act) not provided by law on the effective date of this section, 
including any increase in or addition to credit authority provided by 
law on such date.". 
SEC. 213. DESCRIPTION BY CONGRESSIONAL BUDGET OFFICE. 
(a) CONGRESSIONAL BUDGET OFFICE ANALYSIS.—Section 403(a) of 
the Congressional Budget Act of 1974 is amended by striking out 
"and" at the end of paragraph (2), by striking out the period and 
inserting "; and" at the end of paragraph (3), and by inserting at the 
end thereof the following new paragraph: 
"(4) a description of each method for establishing a Federal 
financial commitment contained in such bill or resolution.". 
(b) CONFORMING AMENDMENT.—The second sentence of section 
403(a) of such Act is amended by striking out "estimates and 
comparison" and inserting in lieu thereof "estimates, comparison, 
and description". 
SEC. 214. GENERAL ACCOUNTING OFFICE STUDY; OFF-BUDGET AGENCIES; 
MEMBER USER GROUP. 
Title IV of the Congressional Budget Act of 1974 is amended by 
inserting at the end thereof the following new sections: 
Ante, p. 1039. 
2 u s e 653. 
STUDY BY THE GENERAL ACCOUNTING OFFICE OF FORMS OF FEDERAL 
FINANCIAL COMMITMENT THAT ARE NOT REVIEWED ANNUALLY BY 
CONGRESS 
"SEC. 405. The General Accounting Office shall study those provi-
sions of law which provide spending authority as described by 
section 401(cX2) and which provide permanent appropriations, and 
report to the Congress its recommendations for the appropriate form 
of financing for activities or programs financed by such provisions 
not later than eighteen months after the effective date of this 
section. Such report shall be revised from time to time. 
Report. 
2 u s e 654. 
Ante, p. 1056. 
OFF-BUDGET AGENCIES, PROGRAMS, AND ACnVITIES 
"SEC. 406. (a) Notwithstanding any other provision of law, budget 
2 use 655. 
authority, credit authority, and estimates of outlays and receipts for 
activities of the Federal budget which are off-budget immediately 
prior to the date of enactment of this section, not including activities 
of the Federal Old-Age and Survivors Insurance and Federal 
Disability Insurance Trust Funds, shall be included in a budget 
submitted pursuant to section 1105 of title 31, United States Code, 
Post, p. 1063. 
and in a concurrent resolution on the budget reported pursuant to 
section 301 or section 304 of this Act and shall be considered, for 
Ante, pp. 1040, 
purposes of this Act, budget authority, outlays, and spending author- 
1047. 
ity in accordance with definitions set forth in this Act. 
"(b) All receipts and disbursements of the Federal Financing Bank 
Banks and 
Math respect to any obligations which are issued, sold, or guaranteed 
banking. 
by a Federal agency shall be treated as a means of financing such 
99 STAT. 1060 
PUBLIC LAW 99-177—DEC. 12, 1985 
98 Stat. 2324. 
agency for purposes of section 1105 of title 31, United States Code, 
and for purposes of this Act. 
"MEMBER USER GROUP 
2 use 656. 
"SEC. 407. The Speaker of the House of Representatives, after 
consulting with the Minority Leader of the House, may appoint a 
Member User Group for the purpose of reviewing budgetary 
scorekeeping rules and practices of the House and advising the 
Speaker from time to time on the effect and impact of such rules 
and practices.". 
Subpart III—Additional Provisions to Improve Budget 
Procedures 
SEC. 221. CONGRESSIONAL BUDGET OFFICE. 
2 use 602. 
(a) REPORTING DATE.—Section 202(fKl) of the Congressional 
Budget Act of 1974 is amended by striking out "April 1" in the first 
sentence and inserting in lieu thereof "February 15". 
Qa) ADDITIONAL REPORTING REQUIREMENT.—Section 202(f) of such 
Act is further amended by adding at the end thereof the following 
new paragraph: 
Report. 
"(3) On or before January 15 of each year, the Director, after 
consultation with the appropriate committees of the House of 
Representatives and Senate, shall submit to the Congress a 
report listing (A) all programs and activities funded during the 
fiscal year ending September 30 of that calendar year for which 
authorizations for appropriations have not been enacted for 
that fiscal year, and (B) all programs and activities for which 
authorizations for appropriations have been enacted for the 
fiscal year ending September 30 of that calendar year, but for 
which no authorizations for appropriations have been enacted 
for the fiscal year beginning October 1 of that calendar year.". 
(c) STUDIES.—Section 202 of such Act is further amended by adding 
at the end thereof the following new subsection: 
"(h) STUDIES.—The Director shall conduct continuing studies to 
enhance comparisons of budget outlays, credit authority, and tax 
expenditures.'. 
SEC. 222. CURRENT SERVICES BUDGET FOR CONGRESSIONAL BUDGET 
PURPOSES. 
(a) CURRENT SERVICES BUDGET.—The first sentence of section 
1109(a) of title 31, United States Code, is amended by striking out 
"Before November 11 of each year" and inserting in lieu thereof 
"On or before the first Monday after January 3 of each year (on or 
before February 5 in 1986)". 
Oa) JOINT ECONOMIC COMMITTEE REVIEW.—Section 1109(b) of title 
31, United States Code, is amended by striking out "January 1" and 
inserting in lieu thereof "March 1". 
SEC. 223. STUDY OF OFF-BUDGET AGENCIES. 
Repeal. 
Section 606 of the Congressional Budget Act of 1974 is repealed 
2 u s e 661. 
SEC. 224. CHANGES IN FUNCTIONAL CATEGORIES. 
Section 1104(c) of title 31, United States Code, is amended by 
adding at the end thereof the following new sentence: "Committees 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1061 
of the House of Representatives and Senate shall receive prompt 
notification of all such changes.". 
SEC. 225. JURISDICTION OF COMMITTEE ON GOVERNMENT OPERATIONS. 
Clause l(j) of Rule X of the Rules of the House of Representatives 
is amended by inserting after item (5) the following new item: 
"(6) Measures providing for off-budget treatment of Federal agen-
cies or programs.'. 
SEC. 226. CONTINUING STUDY OF CONGRESSIONAL BUDGET PROCESS. 
Clause 3 of Rule X of the Rules of the House of Representatives is 
amended by adding at the end thereof the following: 
"(i) The Committee on Rules shall have the function of reviewing Report. 
and studying, on a continuing bsisis, the congressional budget proc-
ess, and the committee shall, from time to time, report its findings 
and recommendations to the House.". 
SEC. 227. EARLY ELECTION OF COMMITTEES OF THE HOUSE. 
Clause 6(a)(1) of Rule X of the Rules of the House of Representa-
tives is amended by striking out "at" and inserting in lieu thereof 
"within the seventh calendar day beginning after", and by adding at 
the end thereof the following new sentence: "It shall always be in 
order to consider resolutions recommended by the respective party 
caucuses to change the composition of standing committees.". 
SEC. 228. RESCISSIONS AND TRANSFERS IN APPROPRIATION BILLS. 
(a) RESCISSIONS.—Clause 2(b) of Rule XXI of the Rules of the House 
of Representatives is amended by inserting before the period at the 
end thereof the following: ", and except rescissions of appropriations 
contained in appropriation Acts". 
(b) TRANSFERS.—Clause 6 of Rule XXI of the Rules of the House of 
Representatives is amended by inserting before the period at the 
end thereof the following: ", and shall not apply to transfers of 
unexpended balances within the department or agency for which 
they were originally appropriated, reported by the Committee on 
Appropriations". 
Subpart IV—Technical and Conforming Amendments 
SEC. 231. TABLE OF CONTENTS. 
The table of contents set forth in section 1(b) of the Congressional 
Budget and Impoundment Control Act of 1974 with respect to title 
III is amended to read as follows: 
"TITLE III—CONGRESSIONAL BUDGET PROCESS 
"Sec. 300. Timetable. 
"Sec. 301. Annual adoption of concurrent resolution on the budget. 
"Sec. 302. Committee allocations. 
"Sec. 303. Concurrent resolution on the budget must be adopted before legislation 
providing new budget authority, new spending authority, new credit au-
thority or changes in revenues or the public debt limit is considered. 
"Sec. 304. Permissible revisions of concurrent resolutions on the budget. 
"Sec. 305. Procedures relating to consideration of concurrent resolutions on the 
budget. 
"Sec. 306. Legislation dealing with congressional budget must be handled by budget 
committees. 
"Sec. 307. House committee action on all appropriation bills to be completed by 
June 10. 
"Sec. 308. Reports, summaries, and projections of congressional budget actions. 
"Sec. 309. House approval of regular appropriation bills. 
99 STAT. 1062 
PUBLIC LAW 99-177—DEC. 12, 1985 
"Sec. 310. Reconciliation. 
"Sec. 311. New budget authority, new spending authority, and revenue legislation 
must be within appropriate levels.". 
SEC. 232. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS. 
(a) TABLE OF CONTENTS.—The table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended— 
(1) by striking out the item relating to section 402 and insert-
ing in lieu thereof the following new item: 
"Sec. 402. Legislation providing new credit authority."; 
(2) by inserting after the item relating to section 404 the 
following new items: 
"Sec. 405. Study by the General Accounting Office of forms of Federal financial 
commitment that are not reviewed annually by Congress. 
"Sec. 406. Off-budget agencies, programs, and activities. 
"Sec. 407. Member user group."; and 
(3) by striking out the item relating to section 606. 
2 use 622. 
0?) TECHNICAL AMENDMENT.—Paragraph (4) of section 3 of the 
Congressional Budget and Impoundment Control Act of 1974 is 
amended— 
(1) by adding "and" after the semicolon at the end of subpara-
graph (A); 
(2) by striking out subparagraph (B); and 
(3) by redesignating subparagraph (C) as subparagraph (B). 
(c) TECHNICAL AMENDMENT.—Subparagraph (2) of clause 40?) of 
rule X of the Rules of the House of Representatives is amended by 
striking out "first concurrent resolution" and inserting in lieu 
thereof "concurrent resolutions". 
(d) TECHNICAL AMENDMENT.—Clause 4(g) of rule X of the Rules of 
the House of Representatives is amended by striking out "March 
15" and inserting in lieu thereof "February 25". 
(e) TECHNICAL AMENDMENT.—Clause 2(1)(1) of rule XI of the Rules 
of the House of Representatives is amended— 
(1) by striking out "(except as provided in subdivision (C))" in 
subparagraph (A) thereof; and 
(2) by repealing subparagraph (C) thereof. 
(f) TECHNICAL AMENDMENT.—Clause 2(1)(3)(B) of rule XI of the 
Rules of the House of Representatives is amended by inserting "(1)" 
after "section 308(a)", and by striking out "new budget authority or 
new or increased tax expenditures" and inserting in lieu thereof 
"new budget authority (other than continuing appropriations), new 
spending authority described in section 401(c)(2) of such Act, new 
credit authority, or an increase or decrease in revenues or tax 
expenditures". 
(g) TECHNICAL AMENDMENT.—Rule XLIX of the Rules of the House 
of Representatives is amended by striking out ", 304, or 310" in 
clause 1 and inserting in lieu thereof "or 304". 
(h) TECHNICAL AMENDMENT.—Clause 1(e)(2) of Rule X of the Rules 
of the House of Representatives is amended by inserting before the 
period at the end thereof the following: ", and any resolution 
pursuant to section 2540t)) of the Balanced Budget and Emergency 
Deficit Control Act of 1985. 
PUBLIC LAW 99-177-DEC. 12, 1985 
99 STAT. 1063 
PART 
B—BUDGET 
SUBMITTED 
BY 
THE 
PRESIDENT 
SEC. 241. SUBMISSION OF PRESIDENT'S BUDGET; MAXIMUM DEFICIT 
AMOUNT MAY NOT BE EXCEEDED. 
(a) SUBMISSION OF PRESIDENT'S BUDGET.—The first sentence of 
section 1105(a) of title 31, United States Code, is amended by strik- 
98 Stat. 2324. 
ing out "During the first 15 days of each regular session of Con-
gress" and inserting in lieu thereof the following: "On or before the 
first Monday after January 3 of each year (or on or before February 
5 in 1986)". 
03) MAXIMUM DEFICIT AMOUNT MAY NOT BE EXCEEDED.—Section 
1105 of title 31, United States Code, is amended by adding at the end 
thereof the following new subsection: 
"(f)(1) The budget transmitted pursuant to subsection (a) for a 
fiscal year shall be prepared on the basis of the best estimates then 
available, in such a manner as to ensure that the deficit for such 
fiscal year shall not exceed the maximum deficit amount for such 
fiscal year as determined under paragraph (7) of section 3 of the 
Congressional Budget and Impoundment Control Act of 1974. 
Ante, p. 1039. 
"(2) The deficit set forth in the budget so transmitted for any fiscal 
year shall not exceed the maximum deficit amount for such fiscal 
year as determined under paragraph (7) of section 3 of the Congres-
sional Budget and Impoundment Control Act of 1974, with budget 
outlays and Federal revenues at such levels as the President may 
consider most desirable and feasible. 
"(3) Paragraphs (1) and (2) shall not apply if a declaration of war 
by the Congress is in effect.". 
SEC. 242. SUPPLEMENTAL BUDGET ESTIMATES AND CHANGES. 
(a) CHANGE IN DATE OF SUBMISSION.—The first sentence of section 
ll()6(b) of title 31, United States Code, is amended by striking out 
"April 11 and". 
(b) REVISIONS AND SUPPLEMENTAL SUMMARIES.—Section 1106 
of 
title 31 of such Code is further amended by adding at the end thereof 
the following new subsection: 
"(c) Subsection (f) of section 1105 shall apply to revisions and Supra. 
supplemental summaries submitted under this section to the same 
extent that such subsection applies to the budget submitted under 
section 1105(a) to which such revisions and summaries relate.". 
PART C—EMERGENCY POWERS TO ELIMINATE 
DEFICITS IN EXCESS OF MAXIMUM DEFICIT 
AMOUNT 
SEC. 251. REPORTING OF EXCESS DEFICITS. 
2 USC 901. 
(a) INITIAL ESTIMATES, DETERMINATIONS, AND REPORT 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— 
(A) estimate the budget base levels of total revenues and 
budget outlays that may be anticipated for such fiscal year 
as of August 15 of the calendar year in which such fiscal 
99 STAT. 1064 
PUBLIC LAW 99-177—DEC. 12, 1985 
year begins (or as of January 10, 1986, in the case of the 
fiscal year 1986), 
(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 years 1986 
and 1991), and 
(C) 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) REPORT.—The Directors jointly shall report to the 
Comptroller General on August 20 of the calendar year in 
which such fiscal year begins (or on January 15, 1986, in the 
case of the fiscal year 1986), estimating the budget base levels of 
total revenues and total budget 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 years 1986 and 1991), 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, and specifying (if the excess is greater 
than $10,000,000,000, or zero in the case of fiscal years 1986 and 
1991), by account, for non-defense programs, and by account and 
programs, projects, and activities within each account, for de-
fense programs, the base from which reductions are taken and 
the amounts and percentages by which such accounts must be 
reduced during such fiscal year, in accordance with the succeed-
ing provisions of this part, in order to eliminate such excess. 
(3) 
DETERMINATION 
OF 
REDUCTIONS.—The 
amounts 
and 
percentages by which such accounts must be reduced during a 
fiscal year shall be determined as follows: 
(A)(i) If the deficit excess for the fiscal year is greater 
than $10,000,000,000 (zero in the case of fiscal years 1986 
and 1991), such deficit excess shall be divided into halves. 
(ii) In the case of fiscal year 1986, the amount of such 
excess— 
(I) shall be multiplied by seven twelfths before being 
divided into halves in accordance with clause (i), and 
(II) shall not exceed $11,700,000,000. 
(B) Subject to the exemptions, exceptions, limitations, 
special rules, and definitions set forth in this section and in 
Post, pp. 1082, 
sections 255, 256, and 257, the reductions necessary to 
1086,1092. 
eliminate one-half of the deficit excess for the fiscal year (as 
adjusted under subparagraph (A)(ii) in the case of fiscal 
year 1986) shall be made in outlays under accounts within 
major functional category 050 (in this part referred to £is 
outlays under "defense programs"), and the reductions nec-
essary to eliminate the other half of the deficit excess (or 
the adjusted deficit excess, in the case of fiscal year 1986) 
shall be made in outlays under other accounts of the Fed-
eral Government (in this part referred to as outlays under 
"non-defense programs"). 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1065 
(CXi) The total amount by which outlays for automatic 
spending increases scheduled to take effect during the fiscal 
year are to be reduced shall be determined in accordance 
with clause (ii) of this subparagraph. 
(ii) Each such automatic spending increase shall be re-
duced— 
(I) to zero (a uniform percentage reduction of 100 
percent), or 
(II) by a uniform percentsige reduction of less than 
100 percent calculated in a manner to reduce total 
outlays for the fiscal year by one-half of the deficit 
excess (or the adjusted deficit excess, in the case of 
fiscal year 1986), if the elimination of all such increases 
would reduce total outlays for the fiscal year by more 
than one-half of the deficit excess (or the adjusted 
deficit excess, in the case of fiscal year 1986) for the 
fiscal year. 
(D) The total amount of the outlay reductions determined 
under subparagraph (C) shall be divided into two amounts: 
(i) an amount equal to the outlay reductions attrib-
utable to programs specified in subparagraph (A) of 
section 257(1); and 
(ii) an amount equal to the outlay reductions attrib-
utable to prc^ams specified in subparagraph (B) of 
section 257(1). 
(EXi) For purposes of subparagraph (B), one-half of the 
amount of the reductions determined under clause (i) of 
subparagraph (D) shall be credited as reductions in outlays 
under defense programs, and the total emiount of reductions 
in outlays under defense programs required under subpara-
graph (B) shall be reduced accordingly. 
(ii) Sequestration of new budget authority and unobli-
gated balances to achieve the remaining reductions in out-
lays under defense programs required under subparagraph 
(B) shall be determined £is provided in subsection (d). 
(FXi) For purposes of subparagraph (B)— 
(I) one-half of the amount of the reductions deter-
mined under clause (i) of subparagraph (D), and 
(II) the amount of the reductions determined under 
clause (ii) of subparagraph (D), 
shall be credited £is 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. 
(ii) 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 
determined, and the total amount of reductions in outlays 
under non-defense programs required under subparagraph 
(B) shall be reduced by the amount of the reduction deter-
mined with respect to each such program. 
(iiiXD Except as provided in subclause (II), the maximum 
reduction permissible for each of the programs to which the 
special rules set forth in sections 256(d) and 256(k) apply 
shall be determined, and the total amount of outlays under 
non-defense programs required under subparagraph (B) 
Post, p. 1092. 
Defense and 
national 
security. 
Post, p. 1086. 
99 STAT. 1066 
PUBLIC LAW 99-177—DEC. 12, 1985 
Ante, p. 1056. 
Post, p. 1072. 
Report. 
Post, p. 1092. 
Post, p. 1086. 
shall be reduced by the amount of the maximum reductions 
so determined. 
(II) If the maximum reduction determined in accordance 
with subclause (I) with respect to the programs to which 
that subclause relates would reduce outlays for such pro-
grams by an amount in excess of the remaining amount of 
the reduction in outlays in non-defense programs required 
under subparagraph (B), outlays for such programs shall 
instead be reduced proportionately by such lesser percent-
age as will achieve such remaining required reductions. 
(iv)(I) Sequestrations and reductions under the remaining 
non-defense programs shall be applied on a uniform 
percentage basis so as to reduce new budget authority, new 
loan guarantee commitments, new direct loan obligations, 
obligation limitations, and spending authority as defined in 
section 401(cX2) of the Congressional Budget Act of 1974 to 
the extent necessary to achieve any remaining required 
outlay reductions. 
(II) For purposes of determining reductions under 
subclause (I), any reduction in outlays of the Commodity 
Credit Corporation 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 
Management Agency, Emergency management planning and 
assistance (58-0101-0-1-999)" shall be treated as being within 
functional category 050. 
(4) ADDITIONAL SPECIFICATIONS.—The report submitted under 
paragraph (2) must also specify (with respect to the fiscal year 
involved)— 
(A) the amount of the automatic spending increase (if 
any) which is scheduled to take effect in the case of each 
program providing for such increases, the amount and 
percentage by which such increase is to be reduced, the 
amount by which the deficit excess (as adjusted under 
paragraph (3)(A)(ii), in the case of fiscal year 1986) will be 
reduced as a result of the elimination or reduction of 
automatic spending increases (stated separately for in-
creases under programs listed in subparagraph (A) of sec-
tion 257(1) and increases under programs listed in subpara-
graph (B) of that section), and the amount (if any) of each 
such increase, stated in terms of percentage points, 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 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1067 
States under section 204 of the Federal-State Extended 
Unemployment Compensation Act of 1970; and 
(CXi) for defense programs, by account and by program, 
project, and activity within each 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, new 
direct loan obligations, obligation limitations, and spending 
authority as defined in section 401(cX2) 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 (cXD shall utilize the budget 
base, criteria, and guidelines set forth in paragraph (6) and in 
sections 255, 256, and 257. In the event that the Directors are 
unable to agree on any items required to be set forth in the 
report, they shall avergige their differences to the extent nec-
essary to produce a single, consistent set of data that achieves 
the required deficit reduction. The report of the Directors shall 
also indicate the amount initially proposed for each averaged 
item by each Director. 
(6) BUDGET BASE.—In computing the amounts and percentages 
by which accounts must be reduced during a fiscal year as set 
forth in any report required under this subsection for such fiscal 
year, the budget base shall be determined by— 
(A) assuming (subject to subparagraph (C)) the continu-
ation of current law in the case of revenues and spending 
authority as defined in section 401(cX2) of the Congression^ 
Budget Act of 1974; 
(B) assuming, in the case of all accounts to which 
subparagraph (A) does not apply, appropriations equal to 
the prior year's appropriations except to the extent that 
annual appropriations or continuing appropriations for the 
entire fiscal year have been enacted; 
(C) assuming that expiring provisions of law providing 
revenues and spending authority as defined in section 
401(cX2) 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 
(D) assuming (i) that Federsd pay adjustments for statu-
tory pay systems (I) will be as recommended by the Presi-
dent, but (II) will in no case result in a reduction in the 
levels of pay in effect immediately before such adjustments; 
and (ii) 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 Financ-
ing Administration pursuant to sections 1886(bX3XB), 
1886(dX3XA), and 1886(eX4) of the Social Security Act. 
Deferrals proposed under section 1013 of the Impoundment 
Control Act of 1974 during the period beginning October 1 of 
26 use 3304 
note. 
Defense and 
national 
security. 
Ante, p. 1056. 
Post, 
pp. 
1082, 
1086, 
1092. 
Ante, p. 
1056. 
98 Stat. 1075. 
42 u s e 
1395ww. 
2 use 684. 
99 STAT. 1068 
PUBLIC LAW 99-177—DEC. 12, 1985 
such fiscal year (or the date of the enactment of this joint 
resolution in the case of fiscal year 1986) and ending with the 
Post, p. 1072. 
date on which the final order is issued under section 252(b) for 
such fiscal year (or February 1, 1986, in the case of fiscal year 
1986) shall not be taken into account in determining such 
budget base. 
(b) REPORT TO PRESIDENT AND CONGRESS BY COMPTROLLER GEN-
ERAL.— 
(1) REPORT TO BE BASED ON OMB-CBO REPORT.—The Comptroller 
General shall review and consider the report issued by the 
Directors for the fiscal year and, with due regard for the data, 
assumptions, and methodologies used in reaching the conclu-
sions set forth therein, shall issue a report to the President and 
the Congress on August 25 of the calendar year in which such 
fiscal year begins (or on January 20, 1986, in the case of the 
fiscal year 1986), estimating the budget base levels of total 
revenues and total budget outlays for such fiscal year, identify-
ing the amount of any deficit excess for such fiscal year (ad-
justed in accordance with subsection (a)(3)(A)(ii), in the case of 
fiscal year 1986), stating whether such deficit excess (or adjusted 
deficit excess, in the case of fiscal year 1986) will be greater 
than $10,000,000,000 (zero in the case of fiscal years 1986 and 
1991), 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 consecu-
tive quarters of negative economic growth, and specifying (if the 
excess is greater than $10,000,000,000, or zero in the case of 
fiscal years 1986 and 1991), by account, for non-defense pro-
grams, and by account and programs, projects, and activities 
within each account, for defense programs, the base from which 
reductions are taken and the amounts and percentages by 
which such accounts must be reduced during such fiscal year in 
order to eliminate such deficit excess (or adjusted deficit excess, 
in the case of fiscal year 1986). Such report shall be based on the 
estimates, determinations, and specifications of the Directors 
and shall utilize the budget base, criteria, and guidelines set 
Post, pp. 1082, 
forth in subsection (a)(6) and in sections 255, 256, and 257. 
1086,1092. 
(2) CONTENTS OF REPORT.—The report of the Comptroller Gen-
eral under this subsection shall— 
(A) provide for the determination of reductions in the 
manner specified in subsection (a)(3); and 
(B) contain estimates, determinations, and specifications 
for all of the items contained in the report submitted by the 
Directors under subsection (a). 
Such report shall explain fully any differences between the 
contents of such report and the report of the Directors. 
(c) REVISED ESTIMATES, DETERMINATIONS, AND REPORTS.— 
(1) REPORT BY OMB AND CBO.—On October 5 of the fiscal year 
(except in the case of the fiscal year 1986), the Directors shall 
submit to the Comptroller General a revised report— 
(A) indicating whether and to what extent, as a result of 
laws enacted and regulations promulgated after the submis-
sion of their initial report under subsection (a), the excess 
deficit (adjusted in accordance with subsection (aX3XAXii), 
in the case of fiscal year 1986) identified in the report 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1069 
submitted under such subsection has been eliminated, re-
duced, or increased, and 
(B) adjusting the determinations made under subsection 
(a) to the extent necessary. 
The revised report submitted under this paragraph shall con-
tain estimates, determinations, and specifications for all of the 
items contained in the initial report and authorized under 
subsection (d)(3)(D)(i) and shall be based on the same economic 
and technical assumptions, employ the same methodologies, and 
utilize the same definition of the budget base and the same 
criteria and guidelines as those used in the report submitted by 
the Directors under subsection (a) (except that subdivision (II) of 
paragraph (6)(D)(i) of such subsection shall not apply), and shall 
provide for the determination of reductions in the manner 
specified in subsection (a)(3). 
(2) REPORT BY COMPTROLLER GENERAL.— 
(A) On October 10 of the fiscal year (except in the case of 
the fiscal year 1986), the Comptroller General shall submit 
to the President and the Congress a report revising the 
report submitted by the Comptroller General under subsec-
tion (b), adjusting the estimates, determinations, and speci-
fications contained in that report to the extent necessary in 
the light of the revised report submitted to him by the 
Directors under paragraph (1) of this subsection. 
(B) The revised report of the Comptroller General under 
this paragraph shall provide for the determination of reduc-
tions as specified in subsection (a)(3) and shall contain all of 
the estimates, determinations, and specifications required 
(in the case of the report submitted under subsection 0^)) 
pursuant to subsection Ot))(2XB). 
(d) SEQUESTRATION OF DEFENSE PROGRAMS.— 
(1) DETERMINATION OF UNIFORM PERCENTAGE.—The total 
amount of reductions in outlays under defense programs re-
quired for a fiscal year under subsection (aX3XB) after the 
reduction under subsection (aX3XEXi) shall be calculated 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 UNOBU-
GATED BALANCES.— 
(A) Sequestration to achieve the remaining 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). 
(BXi) The combined outlay rate for new budget authority 
and unobligated balances for a program, project, or activity 
shall be determined by the Directors from data then avail-
able to them as supplemented by additional data from the 
heads of the appropriate departments or agencies of the 
executive branch. If the outlay rate for unobligated bal-
ances is not available for any program, project, or activity, 
99 STAT. 1070 
PUBLIC LAW 99-177—DEC. 12, 1985 
the outlay rate used shall be the outlay rate for new budget 
authority. 
(ii) The weighted average (by budget authority) for the 
combined outlay rates so determined for all the programs, 
projects, and activities within an account shall be compared 
to the historical outlay rates for that account previously 
estimated by the Directors. If the Directors determine that 
it is necessary to make the combined outlay rate for a 
program, project, or activity as determined under the first 
sentence of this subparagraph consistent with the historical 
rates for such account, they may adjust the outlay rate for 
such program, project, or activity. 
(C) For purposes of this paragraph: 
(i) The term "outlay rate", with respect to any pro-
gram, project, or activity, means— 
(I) the ratio of outlays resulting in the fiscal year 
involved from new budget authority for such pro-
gram, project, or activity to such new budget 
authority; or 
(II) the ratio of outlays resulting in the fiscal 
year involved from unobligated balances for such 
program, project, or activity to such unobligated 
balances. 
(ii) The term "combined outlay rate", with respect to 
any program, project, or activity, means the weighted 
average (by budget authority) of the ratios determined 
under subclauses (I) and (II) of clause (i) for such pro-
gram, project, or activity. 
(3) 
SEQUESTRATION 
FROM 
NATIONAL 
DEFENSE 
ACCOUNTS 
THROUGH TERMINATION OR MODIFICATION OF EXISTING CON-
TRACTS.— 
(AXi) Subject to the provisions of this paragraph, the 
President, with respect to any fiscal year, may provide for— 
(I) the termination or modification of an existing 
contract within any program, project, or activity within 
a account within major functional category 050; and 
(II) the crediting, to the amount of new budget 
authority and unobligated balances otherwise required 
to be reduced from such program, project, or activity, of 
the net reduction achieved for the appropriate fiscal 
year by such termination or modification, based upon 
the combined outlay rate for such program, project, or 
activity determined under parsigraph (2XB). 
(ii) The remaining required outlay reductions in such 
program, project, or activity shall be achieved by sequester-
ing new budget authority and unobligated balances based 
upon the combined outlay rate for such program, project, or 
activity determined under paragraph (2)(B). 
President of U.S. 
(B) Not later than September 5 of the calendar year in 
Report. 
which the fiscal year begins (January 15 in the case of fiscal 
year 1986), the President shall transmit to the C!omptroller 
General and the Committees on Armed Services and on 
Appropriations of the Senate and House of Representatives 
and make available to the Directors a report concerning the 
contracts proposed to be terminated or modified under this 
paragraph for such fiscal year. The report shall— 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1071 
(i) identify the contracts proposed to be terminated or 
Contracts. 
modified and the proposed date of termination or modi-
fication of each such contract; 
(ii) identify the anticipated outlay savings for the 
fiscal year involved and the anticipated reduction in 
obligated balances with respect to each such proposed 
termination or modification, together with an expla-
nation of the relationship between the obligated bal-
ances that could be cancelled and the estimated outlay 
savings resulting therefrom; 
(iii) provide documentation of the anticipated savings 
in outlays and obligated balances; and 
(iv) provide a complete rationale for the effect of each 
proposed termination or modification on the contract 
concerned and on the program, project, or activity 
involved. 
(C) Not later than September 30 of the calendar year in 
which the fiscal year begins (February 15 in the case of 
fiscal year 1986), the Comptroller General shall certify to 
the President and the Congress, with respect to each con-
tract which is proposed to be terminated or modified— 
(i) whether the Comptroller General is able to verify 
that the estimated outlay savings for the fiscal year 
involved are achievable and would be achieved in that 
year; and 
(ii) whether the ratio between the projected outlay 
savings and the anticipated reduction in obligated bal-
ances is reasonable. 
(D)(i) In the case of a fiscal year other than fiscal year Report. 
1986, each proposed contract termination or modification 
described in subparagraph (A) with respect to which the 
certification by the Comptroller General under subpara-
graph (C) is affirmative (with respect to both clause (i) and 
clause (ii) of such subparagraph) shall be included in the 
report of the Directors under subsection (c)(1). The report 
shall include the information about each such contract 
described in subparagraph (B)(ii). 
(ii) In the case of fiscal year 1986, each proposed contract 
termination or modification described in subparagraph (A) 
with respect to which the certification by the Comptroller 
General under subparagraph (C) is affirmative (with respect 
to both clause (i) and (ii) of such subparagraph) shall be 
included 
in 
the 
modification 
authorized 
by 
section 
252(a)(6)(D)(iii) in the order issued by the President under Post, p. 1072. 
section 252(a)(1) with respect to fiscal year 1986. 
(iii) The authority of the President described in subpara-
graph (A) is not effective in the case of any proposed 
contract termination or modification with respect to which 
the certification by the Comptroller General under subpara-
graph (C) is not affirmative (with respect to both clause (i) 
and clause (ii) of such subparagraph). 
(E) For any contract termination or modification pro-
posed pursuant to this paragraph, the President shall cer-
tify to Congress, within thirty days after the effective date 
of the contract termination or modification, that the 
amounts proposed for deobligation under such contract 
have in fact been deobligated and cancelled. 
99 STAT. 1072 
PUBLIC LAW 99-177—DEC. 12, 1985 
Infra. 
Federal 
Register, 
publication. 
2 u s e 902. 
Report. 
Ante, p. 1063. 
Post, pp. 1082, 
1086, 1092. 
2 u s e 621 note. 
Ante, p. 1056. 
Ante, p. 1063. 
(e) DATES FOR SUBMISSION OF REPORTS AND ISSUANCE OF ORDERS.— 
If the date specified for the submission of a report by the Directors 
or the Comptroller Greneral under this section or for the issuance of 
an order by the President under section 252 falls on a Sunday or 
legal holiday, such report shall be submitted or such order issued on 
the following day. 
(0 PRINTING OF REPORTS.—Each report submitted under this sec-
tion shall be printed in the Federal Register on the date it is issued; 
and the reports of the Comptroller General submitted to the Con-
gress under subsections (b) and (cX2) shall be printed as documents 
of the House of Representatives and the Senate. 
(g) EXCEPTION.—The preceding provisions of this section shall not 
apply if a declaration of war by the Congress is in effect. 
SEC. 252. PRESIDENTIAL ORDER 
(a) ISSUANCE OF INITIAL ORDER.— 
(1) IN GENERAL.—On September 1 following the submission of 
a report by the Comptroller General under section 251(b) which 
identifies an amount greater than $10,000,000,000 (zero in the 
case of fiscal years 1986 and 1991) by which the deficit for a 
fiscal year will exceed the maximum deficit amount for such 
fiscal year (or on February 1,1986, in the case of the fiscal year 
1986), the President, in strict accordance with the requirements 
of paragraph (3) and section 251(aX3) and (4) and subject to the 
exemptions, exceptions, limitations, special rules, and defini-
tions set forth in sections 255, 256, and 257, shall eliminate the 
full amount of the deficit excess (as adjusted by the Comptroller 
General 
in 
such 
report 
in 
accordance 
with 
section 
251(aX3XAXii), in the case of fiscal year 1986) by issuing an order 
that (notwithstanding the Impoundment Control Act of 1974)— 
(A) modifies or suspends the operation 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 
(B) eliminates the remainder of such deficit excess (or 
adjusted deficit excess, in the case of fiscal year 1986) by 
sequestering new budget authority, unobligated balances, 
new loan guarantee commitments, new direct loan obliga-
tions, and spending authority as defined in section 401(cX2) 
of the Congressional Budget Act of 1974, and reducing 
obligation limitations, in accordance with such report— 
(i) for funds provided in annual appropriation Acts, 
from each affected program, project, and activity (as set 
forth in the most recently enacted applicable appro-
priation Acts and accompanying committee reports for 
the progrgmi, project, or activity involved, including 
joint resolutions providing continuing appropriations 
and committee reports accompanying Acts referred to 
in such resolutions), appljdng the same reduction 
percentage as the percentage by which the account 
involved is reduced in the report submitted under sec-
tion 251(b), or from each affected budget account if the 
program, project, or activity is not so set forth, and 
(ii) for funds not provided in annual appropriation 
Acts, from each budget account activity as identified in 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1073 
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) SPECIAL SEQUESTRATION PROCEDURES FOR NATIONAL DEFENSE 
FOR FISCAL YEAR 1986.— 
(A) IN GENERAL.—Notwithstanding subparagraph (B)(i) of 
paragraph (1), the order issued by the President under 
paragraph (1) with respect to fiscal year 1986 shall seques-
ter, from each program, project, or activity within an ac-
count within major functional category 050, such amounts 
of new budget authority and unobligated balances as are 
specified (in accordance with section 251(a)(3)(E)(ii)) in the Ante, p. 1063. 
report submitted by the Comptroller General under section 
251(b). 
(B) FLEXIBILITY WITH RESPECT TO MIUTARY PERSONNEL 
ACCOUNTS.— 
(i) Notwithstanding subparagraph (B)(i) of paragraph 
(1), the order issued by the President under paragraph 
(1) with respect to fiscal year 1986 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 subclauses (I) 
and (II). 
(ii) If the President uses the authority under clause 
(i), the total amount by which outlays are not reduced 
for fiscal year 1986 in military personnel accounts by 
reason of the use of such authority shall be determined. 
Reductions in outlays under defense programs in such 
total amount shall be achieved by a uniform percent-
age sequestration of new budget authority and unobli-
gated 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 provided under clause (i) has been 
exercised, computed on the basis of the outlay rate for 
each such program, project, and activity determined 
under section 251(d). 
Ante, p. 1063. 
(iii) The President may not use the authority pro-
vided by clause (i) unless he notifies the Comptroller 
General and the Congress on or before January 10, 
1986, of the manner in which such authority will be 
exercised. 
(C) FLEXIBILITY AMONG PROGRAMS, PROJECTS, AND ACTIVI-
TIES WITHIN ACCOUNTS.— 
(i) New budget authority and unobligated balances 
for any program, project, or activity within an account 
within major functional category 050 may be reduced 
under an order issued by the President under para-
graph (1) for fiscal year 1986, subject to clauses (ii) and 
(iii) of this subparagraph, by up to two times the 
99 STAT. 1074 
PUBLIC LAW 99-177—DEC. 12, 1985 
percentage otherwise applicable to the program, 
project, or activity (determined after any reduction 
under subparagraph (B)). To the extent such reductions 
are made under such an order, the President may 
provide in the order for an increase in new budget 
authority and unobligated balances for another pro-
gram, project, or activity within the same account 
within major functional category 050 for fiscal year 
1986, but such program, project, or activity may not be 
increased above the level in the base set forth in such 
order. 
(ii) No order issued by the President under paragraph 
(1) for fiscal year 1986 may result in a base closure or 
realignment that would otherwise be subject to section 
Ante, p. 716. 
2687 of title 10, United States Code. 
(iii) New budget authority and unobligated balances 
for any program, project, or activity within major func-
tional category 050 for fiscal year 1986 which is 10 
percent (or more) greater than the amount requested in 
the budget submitted by the President under section 
Ante, p. 1063. 
1105 of title 31, United States Code, for fiscal year 1986 
may not be reduced by more than the percentage ap-
plicable to the program, project, or activity (determined 
after any reduction under subparagraph (B)). 
(3) ORDER TO BE BASED ON COMPTROLLER GENERAL'S REPORT.— 
The order must provide for reductions in the manner specified 
Ante, p. 1063. 
in section 251(aX3), must incorporate the provisions of the 
report submitted under section 251(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 the report 
submitted under section 251(b) 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 ac-
count, with the exception of the authority granted to the Presi-
dent for fiscal year 1986 with respect to defense programs 
pursuant to paragraph (2XC). 
(4) EFFECT OF SEQUESTRATION UNDER INFITAL ORDER.—Notwith-
Post, p. 1092. 
standing section 257(7), amounts sequestered under an order 
issued by the President under paragraph (1) for fiscal year 1987 
or any subsequent fiscal year shall be withheld from obligation 
pending the issuance of a final order under subsection (b) and 
shall be permanently cancelled in accordance with such final 
order upon the issuance of such order. 
President of U.S. 
(5) ACCOMPANYING MESSAGE.—At the time the actions de-
scribed in the preceding provisions of this subsection with re-
spect to any fiscal year are taken, the President shall transmit 
to both Houses of the Congress a message containing all the 
Ante, p. 1063. 
information required by section 251(aX4) and further specifying 
in strict accordance with paragraph id)— 
(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. 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1075 
Upon receipt in the Senate and the House of Representatives, 
the message (and any accompanying proposals made under 
subsection (c)) shall be referred to all committees with jurisdic-
tion over programs, projects, and activities affected by the 
order. 
(6) EFFECTIVE DATE OF INITIAL ORDER.— 
(A) FISCAL YEAR 1986.—The order issued by the President 
under paragraph (1) with respect to the fiscal year 1986 
shall be effective as of March 1,1986. 
(B) FISCAL YEARS 1987-1991.—The order issued by the President of U.S. 
President under paragraph (1) with respect to the fiscal 
year 1987 or any subsequent fiscal year shall be effective as 
of October 1 of such fiscal year (and the President shall 
withhold from obligation as provided in paragraph (4), 
pending the issuance of his final order under subsection (b), 
any amounts that are to be sequestered or reduced under 
such order). 
(C) TREATMENT OF AUTOMATIC SPENDING INCREASES.— 
(i) FISCAL YEAR 1986.—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 date of the enactment of this 
joint resolution and ending with the effective date of an 
order issued by the President under paragraph (1) for 
the fiscal year 1986 shall be suspended until such order 
becomes effective, and the amounts that would other-
wise be expended during such period with respect to 
such increases shall be withheld. If such order provides 
that automatic spending increases shall be reduced to 
zero during such fiscal year, the increases suspended 
pursuant to the preceding sentence and any legal 
rights thereto shall be permanently cancelled. If such 
order provides for the payment of automatic spending 
increases during such fiscal year in amounts that are 
less than would have been paid but for such order, or 
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 pay-
ments in the amounts necessary to pay such reduced or 
full increases shall be made, for the period for which 
such increases were suspended pursuant to this clause. 
(ii) FISCAL YEARS 1987-1991.—Notwithstanding any 
other provision of law, any automatic spending in-
crease 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 sus-
pended 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 provides that automatic 
spending increases shall be reduced to zero during such 
fiscal year, the increases suspended pursuant to the 
preceding sentence and any legal rights thereto shall 
be permanently cancelled. If such final order provides 
for the payment of automatic spending increases 
99 STAT. 1076 
PUBLIC LAW 99-177—DEC. 12, 1985 
during such fiscal year in amounts that are less than 
would have been paid but for such final order, or 
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 pay-
ments in the amounts necessary to pay such reduced or 
full increases shall be made, for the period for which 
such increases were suspended pursuant to this clause. 
(iii) PROHIBITION AGAINST RECOUPMENT.—Notwith-
standing clauses (i) and (ii), if an amount required by 
either such clause to be withheld is paid, no 
recoupment shall be made against an individual to 
whom payment was made. 
(iv) EFFECT OF LUMP-SUM PAYMENTS ON NEEDS-RELATED 
PROGRAMS.—Lump-sum payments made under the last 
sentence of clause (i) or clause (ii) shall not be consid-
ered as income or resources or otherwise taken into 
account in determining the eligibility of any individual 
for aid, assistance, or benefits under any Federal or 
federally-assisted program which conditions such eligi-
bility to any extent upon the income or resources of 
such individual or his or her family or household, or in 
determining the amount or duration of such aid, assist-
ance, or benefits. 
(D) SPECIAL RULES FOR FISCAL YEAR 1986.—(i) For purposes 
Ante, p. 1063. 
of applying this section and section 251 with respect to the 
fiscal year 1986— 
(I) the order issued by the President under paragraph 
(1) of this subsection shall be considered the final order 
of the President under this section; and 
(II) the Committees on Appropriations of the House 
of Representatives and the Senate may, after consulta-
tion with each other, define the term "program, 
project, and activity", and report to their respective 
Houses, with respect to matters within their jurisdic-
tion, and the order issued by the President shall seques-
ter funds in accordance with such definition. 
(ii) If the Comptroller General declares in the report 
issued under section 251(b) for fiscal year 1986 that as a 
result of laws enacted and regulations promulgated after 
the date of the enactment of this joint resolution and prior 
to the issuance of such report the excess deficit for the fiscal 
year (adjusted in accordance with section 251(a)(3)(A)(ii) has 
been eliminated, the order issued under this subsection for 
the fiscal year shall so state (and shall make available for 
obligation and expenditure any amounts withheld pursuant 
to subparagraph (C)(i) of this paragraph). 
(iii) The order issued by the President under paragraph 
(1) with respect to fiscal year 1986 shall be modified before 
the effective date for such order prescribed under subpara-
graph (A) to include in the order the changes in budget 
authority and unobligated balances, and related changes in 
outlay reductions, authorized for such fiscal year under 
section 251(d)(3)(D)(ii). 
(b) ISSUANCE OF FINAL ORDER.— 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1077 
.ifnh 
(1) IN GENERAL.—On October 15 of the fiscal year (except in President of U.S. 
the case of the fiscal year 1986), after the submission of the ^"-te, p. 1063. 
revised report submitted by the Comptroller General under 
section 251(cX2), the President shall issue a final order under 
this section to eliminate the full amount of the deficit excess as 
identified by the Comptroller General in the revised report 
submitted under section 251(cX2) 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 
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 
Comptroller Greneral in the revised report submitted under 
section 251(cX2), 
(B) shall make such reductions and sequestrations in 
strict accordance with the requirements of section 251(aX3) 
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 subsection (aX3) shall apply to the revised 
report submitted under section 251(cX2) and to the order issued 
under this subsection in the same manner as such provisions 
apply to the initial report issued under section 251(b) and to the 
order issued under subsection (a). 
(2) ORDER REQUIRED IF EXCESS DEFICIT IS EUMINATED.—If the Report. 
Comptroller General issues a revised report under section 
251(cX2) stating that as a result of laws enacted and regulations 
promulgated after the submission of the initial report of the 
Comptroller General under section 251(b) the excess deficit for a 
fiscal year (adjusted in accordance with section 251(aX3XAXii), 
in the c£ise of fiscal year 1986) has been eliminated, the order 
issued under this subsection shall so state and shall make 
available for obligation and expenditure any amounts withheld 
pursuant to subsection (aX4) or (aX6XC). 
(3) EFFECTIVE DATE OF FINAL ORDER.— 
(A) Except as provided in subsection (aX6XA), the final 
order issued by the President under paragraph (1) shall 
become effective on the date of its issuance, and shall 
supersede the order issued under subsection (aXD-
(B) Any modification or suspension by such order of the 
operation of a provision of law that would (but for such 
order) require an automatic spending increase to take effect 
during the fiscal year shall apply for the one-year period 
beginning with the date on which such automatic increase 
would have taken effect during such fiscal year (but for 
such order). 
(c) PROPOSAL OF ALTERNATIVES BY THE PRESIDENT.—A message 
transmitted pursuant to subsection (aX5) with respect to a fiscal year 
may be accompanied by a proposal setting forth in full detail 
alternative ways to reduce the deficit for such fiscal year to an 
amount not greater than the msiximum deficit amount for such 
fiscal year. 
(d) EXISTING PROGRAMS, PROJECTS, AND ACTIVITIES NOT TO BE Prohibition. 
EUMINATED.—No action taken by the President under subsection (a) 
99 STAT. 1078 
PUBLIC LAW 99-177—DEC. 12, 1985 
or (b) of this section shall have the effect of eliminating any pro-
gram, project, or activity of the Federal Government. 
Prohibition. 
(e) RELATIVE BUDGET PRIORITIES NOT To B E 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 Fed-
eral 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. 
2 
use 
9
0
3
. 
SEC. 
2
5
3
. 
COMPLIANCE 
REPORT 
BY 
COMPTROLLER 
GENERAL. 
On or before November 15 of each fiscal year (or on or before 
April 1, 1986, in the case of the fiscal year 1986), the Comptroller 
General shall submit to the Congress and the President a report on 
Ante, p. 1072. 
the extent to which the President's order issued under section 252(b) 
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 use 904. 
SEC. 254. CONGRESSIONAL ACTION. 
(a) SPECIAL PROCEDURES IN THE EVENT OF A RECESSION.— 
(1) IN GENERAL.—The Director of the Congressional Budget 
Office shall notify the Congress at any time if— 
(A) during the period consisting of the quarter during 
which such notification is given, the quarter preceding such 
notification, and the four quarters following such notifica-
tion, such Office or the Office of Management and Budget 
has determined that real economic growth is projected or 
estimated to be less than zero with respect to each of any 
two consecutive quarters within such period, or 
(B) the Department of Commerce preliminary reports of 
actual real economic growth (or any subsequent revision 
thereof) indicate that the rate of real economic growth for 
each of the most recent reported quarter and the imme-
diately preceding quarter is less than one percent. 
Upon such notification the Majority Leader of each House shall 
introduce a joint resolution (in the form set forth in paragraph 
(2)) declaring that the conditions specified in this paragraph are 
met and suspending the relevant provisions of this title for the 
remainder of the current fiscal year or for the following fiscal 
year or both. 
(2) FORM OF JOINT RESOLUTION.— 
(A) The matter after the resolving clause in any joint 
resolution introduced pursuant to paragraph (1) shall be as 
follows: "That the Congress declares that the conditions 
specified in section 254(a)(1) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 are met; and— 
"(1) the provisions of sections 3(7), 301(i), 302(f), 
304(b), and 311(a) of the Congressional Budget and 
Ante, pp. 1039, 
Impoundment Control Act of 1974, section 1106(c) of 
1040,1044,1047, 
title 31, United States Code, and part C of the Balanced 
Ante p 1063 
Budget and Emergency Deficit Control Act of 1985 are 
Ante, p. 1063! 
suspended for the remainder of the current fiscal year, 
and 
"(2) the provisions of sections 3(7), 301(i), 304(b), and 
311(a) (insofar as it relates to section 3(7)) of the 
Congressional Budget and Impoundment Control Act of 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1079 
1974, sections 302(f) and 311(a) (except insofar as it Ante, pp. 1044, 
relates to section 3(7)) of that Act (but only if a concur- 1055. 
rent resolution on the budget under section 301 of that 
^"J^' P- f r^^-
Act, for the fiscal year following the current fiscal year, 
" ^' P-
has been agreed to prior to the introduction of this joint 
resolution), sections 1105(f) and 1106(c) of title 31, 
United States Code, and part C of the Balanced Budget 
Ante, p. 1063. 
and Emergency Deficit Control Act of 1985 are sus- ^nte, p. 1063. 
pended for the fiscal year following the current fiscal 
year. 
This joint resolution shall not have the effect of suspending 
any final order which was issued for the current fiscal year 
under section 2520)) of the Balsuiced Budget and Emergency 
Deficit Control Act of 1985 if such order was issued before 
Ante, p. 1072. 
the date of the enactment of this joint resolution.". 
(B) The title of the joint resolution shall be "Joint resolu-
tion suspending certain provisions of law pursuant to sec-
tion 254(aX2) of the Balanced Budget and Emergency Defi-
cit Control Act of 1985."; and the joint resolution shall not Ante, p. 1078. 
contain any preamble. 
(3) COMMITTEE ACTION.—Each joint resolution introduced 
pursuant to paragraph (1) shall be referred to the Committee on 
the Budget of the House involved; and such Committee shall 
report the joint resolution to its House without amendment on 
or before the fifth day on which such House is in session after 
the date on which the joint resolution is introduced. If the 
Committee fails to report the joint resolution within the five-
day period referred to in the preceding sentence, it shall be 
automatically discharged from further consideration of the joint 
resolution, and the joint resolution shall be placed on the 
appropriate calendar. 
(4) CONSIDERATION OF JOINT RESOLUTION.— 
(A) A vote on final passage of a joint resolution reported 
to a House of the Congress or discharged pursuant to 
paragraph (3) shall be taken on or before the close of the 
fifth calendar day of session of such House after the date on 
which the joint resolution is reported to such House or after 
the Committee has been discharged from further consider-
ation of the joint resolution. If prior to the passage by one 
House of a joint resolution of that House, that House 
receives the same joint resolution from the other House, 
then— 
(i) the procedure in that House shall be the same as if 
no such joint resolution had been received from the 
other House, but 
(ii) the vote on final passage shall be on the joint 
resolution of the other House. 
When the joint resolution is agreed to, the Clerk of the 
House of Representatives (in the case of a House joint 
resolution agreed to in the House of Representatives) or the 
Secretary of the Senate (in the case of a Senate joint 
resolution agreed to in the Senate) shall cause the joint 
resolution to be engrossed, certified, and transmitted to the 
other House of the C!ongress as soon £is practicable. 
(BXi) A motion in the House of Representatives to proceed 
to the consideration of a joint resolution under this para-
graph shall be highly privileged and not debatable. An 
99 STAT. 1080 
PUBLIC LAW 99-177—DEC. 12, 1985 
amendment to the motion shall not be in order, nor shall it 
be in order to move to reconsider the vote by which the 
motion is agreed to or disagreed to. 
(ii) Debate in the House of Representatives on a joint 
resolution under this paragraph shall be limited to not 
more than five hours, which shall be divided equally 
between those favoring and those opposing the joint resolu-
tion. A motion to postpone, made in the House of Rep-
resentatives with respect to the consideration of a joint 
resolution under this paragraph, and a motion to proceed to 
the consideration of other business, shall not be in order. A 
motion further to limit debate shall not be debatable. It 
shall not be in order to move to table or to recommit a joint 
resolution under this paragraph or to move to reconsider 
the vote by which the joint resolution is agreed to or 
disagreed to. 
(iii) All appeals from the decisions of the Chair relating to 
the application of the Rules of the House of Representatives 
to the procedure relating to a joint resolution under this 
paragraph shall be decided without debate. 
(iv) Except to the extent specifically provided in the 
preceding provisions of this subsection or in subparagraph 
(D), consideration of a joint resolution under this subpara-
graph shall be governed by the Rules of the House of 
Representatives. 
(CXi) A motion in the Senate to proceed to the consider-
ation of a joint resolution under this paragraph shall be 
privileged and not debatable. An amendment to the motion 
shall not be in order, nor shall it be in order to move to 
reconsider the vote by which the motion is agreed to or 
disagreed to. 
(ii) Debate in the Senate on a joint resolution under this 
paragraph, and all debatable motions and appeals in 
connection therewith, shall be limited to not more than five 
hours. The time shall be equally divided between, and 
controlled by, the majority leader and the minority leader 
or their designees. 
(iii) Debate in the Senate on any debatable motion or 
appeal in connection with a joint resolution under this 
paragraph shall be limited to not more than one hour, to be 
equally divided between, and controlled by, the mover and 
the manager of the joint resolution, except that in the event 
the manager of the joint resolution is in favor of any such 
motion or appeal, the time in opposition thereto shall be 
controlled by the minority leader or his designee. 
(iv) A motion in the Senate to further limit debate on a 
joint resolution under this paragraph is not debatable. A 
motion to table or to recommit a joint resolution under this 
paragraph is not in order. 
(D) No amendment to a joint resolution considered under 
this paragraph shall be in order in either the House of 
Representatives or the Senate, 
(b) CONGRESSIONAL RESPONSE TO PRESIDENTIAL ORDER.— 
(1) REPORTING OF RESOLUTIONS, AND RECONCIUATION BILLS AND 
RESOLUTIONS, IN THE SENATE.— 
(A) COMMITTEE ALTERNATIVES TO PRESIDENTIAL ORDER.— 
Within two days after the submission of a report by the 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1081 
Comptroller General under section 251(c)(2), each standing 
Ante, p. 1063. 
committee of the Senate may submit to the Committee on 
the Budget of the Senate information of the type described 
in section 301(d) of the Congressional Budget Act of 1974 Ante, p. 1040. 
with respect to alternatives to the order envisioned by such 
report insofar as such order affects laws within the jurisdic-
tion of the committee. 
(B) INITIAL BUDGET COMMITTEE ACTION.—Not later than Report, 
two days after issuance of a final order by the President 
under section 252(b) with respect to a fiscal year, the Ante, p. 1072. 
Committee on the Budget of the Senate may report to the 
Senate a resolution. The resolution may affirm the impact 
of the order issued under such section, in whole or in part. 
To the extent that any part of the order is not affirmed, the 
resolution shall state which parts are not affirmed and 
shall contain instructions to committees of the Senate of 
the type referred to in section 310(a) of the Congressional 
Budget Act of 1974, sufficient to achieve at least the total 
Ante, p. 1053. 
level of deficit reduction contained in those sections which 
are not affirmed. 
(C) RESPONSE OF COMMITTEES.—Committees instructed 
pursuant to subparagraph (B), or affected thereby, shall 
submit their responses to the Budget Committee no later 
than 10 days after the resolution referred to in subpara-
graph (B) is agreed to, except that if only one such Commit-
tee is so instructed such Committee shall, by the same date, 
report to the Senate a reconciliation bill or reconciliation 
resolution containing its recommendations in response to 
such instructions. A committee shall be considered to have 
complied with all instructions to it pursuant to a resolution 
adopted under subparagraph (B) if it has made rec-
ommendations with respect to matters within its jurisdic-
tion which would result in a reduction in the deficit at least 
equal to the total reduction directed by such instructions. 
(D) BUDGET COMMITTEE ACTION.—Upon receipt of the rec-
ommendations received in response to a resolution referred 
to in subparagraph (B), the Budget Committee shall report 
to the Senate a reconciliation bill or reconciliation resolu-
tion, or both, carrying out all such recommendations with-
out any substantive revisions. In the event that a commit-
tee instructed in a resolution referred to in subparagraph 
(B) fails to submit any recommendation (or, when only one 
committee is instructed, fails to report a reconciliation bill 
or resolution) in response to such instructions, the Budget 
Committee shall include in the reconciliation bill or rec-
onciliation resolution reported pursuant to this subpara-
graph legislative language within the jurisdiction of the 
noncomplying committee to achieve the amount of deficit 
reduction directed in such instructions. 
(E) POINT OF ORDER.—It shall not be in order in the 
Senate to consider any reconciliation bill or reconciliation 
resolution reported under subparagraph (D) with respect to 
a fiscal year, any amendment thereto, or any conference 
report thereon i
f
— 
(i) the enactment of such bill or resolution as re-
ported; 
99 STAT. 1082 
PUBLIC LAW 99-177—DEC. 12, 1985 
(ii) the adoption and enactment of such amendment; 
or 
(iii) the enactment of such bill or resolution in the 
form recommended in such conference report, 
would cause the amount of the deficit for such fiscal year to 
exceed the maximum deficit amount for such fiscal year. 
Ante, p. 1063. 
unless the report submitted under section 251(cXl) projects 
negative real economic growth for such fiscal year, or for 
each of any two consecutive quarters during such fiscal 
;. I 
year. 
(F) TREATMENT OF CERTAIN AMENDMENTS.—In the Senate, 
an amendment which adds to a resolution reported under 
subparagraph (B) an instruction of the type referred to in 
such subparagraph shall be in order during the consider-
ation of such resolution if such amendment would be in 
order but for the fact that it would be held to be non-
germane on the basis that the instruction constitutes new 
matter. 
(G) DEFINITION.—For purposes of subparagraphs (A), (B), 
and (C), the term "day' shall mean any calendar day on 
which the Senate is in session. 
(2) PROCEDURES.— 
(A) IN GENERAL.—Except as provided in subparagraph (B), 
in the Senate the provisions of sections 305 and 310 of the 
Ante, pp. 1047, 
Congressional Budget Act of 1974 for the consideration of 
1053. 
concurrent resolutions on the budget and conference re-
ports thereon shall also apply to the consideration of resolu-
tions, and reconciliation bills and reconciliation resolutions 
reported under this paragraph and conference reports 
thereon. 
(B) LIMIT ON DEBATE.—Debate in the Senate on any reso-
lution reported pursuant to paragraph (IXB), and all 
amendments thereto and debatable motions and appeals in 
connection therewith, shall be limited to 10 hours. 
(C) LIMITATION ON AMENDMENTS.—Section 310(dX2) of the 
Ante, p. 1058. 
Congressional Budget Act shall apply to reconciliation bills 
and reconciliation resolutions reported under this subsec-
tion. 
(D) BILLS AND RESOLUTIONS RECEIVED FROM THE HOUSE.— 
Any bill or resolution received in the Senate from the 
House, which is a companion to a reconciliation bill or 
reconciliation resolution of the Senate for the purposes of 
this subsection, shall be considered in the Senate pursuant 
to the provisions of this subsection. 
(E) DEFINITION.—For purposes of this subsection, the 
term "resolution" means a simple, joint, or concurrent 
resolution. 
(c) CERTAIN RESOLUTIONS TREATED AS RECONCILIATION BILLS.— 
Resolutions described in subsection 0>) of this section and bills 
reported as a result thereof shall be considered in the Senate to be 
reconciliation bills or resolutions for purposes of the Congressional 
2 use 621 note. 
Budget Act of 1974. 
2 use 905. 
SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES. 
(a) SOCIAL SECURITY BENEFITS AND TIER I RAILROAD RETIREMENT 
BENEFITS.—Increases in benefits payable under the old-age, survi-
vors, and disability insurance program established under title II of 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1083 
the Social Security Act, or in benefits payable under section 3(a), 
3(fX3), 4(a), or 4(f) of the Railroad Retirement Act of 1974, shall not 
be considered "automatic spending increases" for purposes of this 
title; and no reduction in any such increase or in any of the benefits 
involved shall be made under any order issued under this part. 
(b) VETERANS PROGRAMS.—The following programs shall be 
exempt from reduction under any order issued under this part: 
Veterans' compensation (36-0153-0-1-701); and 
Veterans' pensions (36-0154-0-1-701). 
(c) NET INTEREST.—No reduction of payments for net interest (all 
of major functional category 900) shall be made under any order 
issued under this part. 
(d) EARNED INCOME TAX CREDFT.—Pajmients to individuals made 
pursuant to section 32 of the Internal Revenue Code of 1954 shall be 
exempt from reduction under any order issued under this part. 
(e) OFFSETTING RECEIPTS AND COLLECTIONS.—Offsetting receipts 
and collections shall not be reduced under any order issued under 
this part. 
(f) CERTAIN PROGRAM BASES.—Outlays for programs specified in 
paragraph (1) of section 257 shall be subject to reduction only in 
accordance with the procedures established in section 251(aX3XC) 
and 256(b). 
(g) OTHER PROGRAMS AND AcnvmES.— 
(1) The following budget accounts and activities shall be 
exempt from reduction under any order issued under this part: 
Activities resulting from private donations, bequests, or 
voluntary contributions to the Government; 
Alaska Power Administration, Operations and mainte-
nance (89-0304-0-1-271); 
Appropriations for the District of Columbia (to the extent 
they are appropriations of locally raised funds); 
Bonneville Power Administration fund and borrowing 
authority established pursuant to section 13 of Public Law 
93-454 (1974), as amended (89-4045-0-3-271); 
Bureau of Indian Affairs miscellaneous trust funds, tribal 
trust funds (14-9973-0-7-999); 
Claims, defense (97-0102-0-1-051); 
Claims, judgments, and relief acts (20-1895-0-1-806); 
Coinage profit fund (20-5811-0-2-803); 
Compensation of the President (11-0001-0-1-802); 
Eastern Indian land claims settlement fund (14-2202-0-
1-806); 
Exchange stabilization fund (20-4444-0-3-155); 
Federal pajmient to the railroad retirement account (60-
0113-0-1-601); 
Foreign military sales trust fund (11-8242-0-7-155); 
Health professions graduate student loan insurance fund 
(Health Education Assistance Loan Program) (75-4305-0-3-
553); 
Intragovernmental funds, including those from which the 
outlays are derived primarily from resources paid in from 
other government accounts, except to the extent such funds 
are augmented by direct appropriations for the fiscal year 
during which an order is in effect; 
Payment of Vietnam and USS Pueblo prisoner-of-war 
claims (15-0104-0-1-153); 
42 use 401. 
45 u s e 231b, 
231c. 
26 use 32. 
Post, p. 1092. 
Ante, p. 1063. 
Post, p. 1086. 
eiaims. 
16 use 838k. 
President of U.S. 
99 STAT. 1084 
PUBLIC LAW 99-177—DEC. 12, 1985 
Payment to civil service retirement and disability fund 
(24-0200-0-1-805); 
Payments to copyright owners (03-5175-0-2-376); 
Payments to health care trust funds (75-0580-0-1-572); 
Payments to military retirement fund (97-0040-0-1-054); 
Pa3mients to social security trust funds (75-0404-0-1-
571); 
Payments to state and local government fiscal assistance 
trust fund (20-2111-0-1-851); 
Pajrments to the foreign service retirement and disability 
fund (11-1036-0-1-153 and 19-0540-0-1-153); 
Payments to trust funds from excise taxes or other re-
ceipts properly creditable to such trust funds; 
Postal service fund (18-4020-0-3-372); 
Salaries of Article III judges; 
Soldiers and Airmen's Home, payment of claims (84-
8930-0-7-705); 
Southeastern Power Administration, Operations and 
maintenance (89-0302-0-1-271); 
Southwestern Power Administration, Operations and 
maintenance (89-0303-0-1-271); 
Tennessee Valley Authority fund, except non-power pro-
grams and activities (64-4110-0-3-999); 
Western Area Power Administration, Construction, re-
habilitation, operations, and medntenance (89-5068-0-2-
271); and 
Western Area Power Administration, Colorado River 
basins power marketing fund (89-4452-0-3-271). 
(2) Prior legal obligations of the Government in the following 
budget accounts and activities shall be exempt from any order 
issued under this part: 
Agency for International Development, Housing, and 
other credit guarantee programs (72-4340-0-3-151); 
,; 
Agricultural credit insurance fund (12-4140-0-3-351); 
Biomass energy development (20-0114-0-1-271); 
Check forgery insurance fund (20-4109-0-3-803); 
Community development grant loan guarantees (86-
0162-0-1-451); 
Credit union share insurance fund (25-4468-0-3-371); 
Economic development revolving fund (13-4406-0-3-452); 
Employees life insurance fund (24-8424-0-8-602); 
Energy security reserve (Synthetic Fuels Corporation) 
(20-0112-0-1-271); 
Export-Import Bank of the United States, Limitation of 
program activity (83-4027-0-3-155); 
Federal Aviation Administration, Aviation insurance 
revolving fund (69-4120-0-3-402); 
Federsd Crop Insurance Corporation fund (12-4085-0-3-
351); 
Federal Deposit Insurance Corporation (51-8419-0-8-
371); 
Federal Emergency Management Agency, National flood 
insurance fund (58-4236-0-3-453); 
Federal Emergency Management Agency, National insur-
ance development fund (58-4235-0-3-451); 
Federal Housing Administration fund (86-4070-0-3-371); 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1085 
Federal Savings and Loan Insurance Corporation fund 
(82-4037-0-3-371); 
Federal ship financing fund (69-4301-0-3-403); 
Federal ship financing fund, fishing vessels (13-4417-0-3-
376); 
Geothermal resources development fund (89-0206-0-1-
271); 
Government National Mortgage Association, Guarantees 
of mortgage-backed securities (86-4238-0-3-371); 
Health education loans (75-4307-0-3-553); 
Homeowners assistance fund, Defense (97-4090-0-3-051); 
Indian loan guarantee and insurance fund (14-4410-0-3-
452); 
International Trade Administration, Operations and 
administration (13-1250-0-1-376); 
Low-rent public housing, Loans and other expenses (86-
4098-0-3-604); 
Maritime Administration, War-risk insurance revolving 
fund (69-4302-0-3-403); 
Overseas Private Investment Corporation (71-4030-0-3-
151); 
Pension Benefit Guaranty Corporation fund (16-4204-0-
3-601); 
Rail service assistance (69-0122-0-1-401); 
Railroad rehabilitation and improvement financing fund 
(69-4411-0-3-401); 
Rural development insurance fund (12-4155-0-3-452); 
Rural electric and telephone revolving fund (12-4230-8-
3-271); 
Rural housing insurance fund (12-4141-0-3-371); 
Small Business Administration, Business loan and invest-
ment fund (73-4154-0-3-376); 
Small Business Administration, Lease guarantees revolv-
ing fund (73-4157-0-3-376); 
Small Business Administration, Pollution control equip-
ment contract guarantee revolving fund (73-4147-0-3-376); 
Small Business Administration, Surety bond guarantees 
revolving fund (73-4156-0-3-376); 
Veterans Administration, Loan guaranty revolving fund 
(36-4025-0-3-704); 
Veterans Administration, National service life insurance 
fund (36-8132-0-7-701); 
Veterans 
Administration, 
Service-disabled 
veterans 
insurance fund (36-4012-0-3-701); 
Veterans Administration, Servicemen's group life insur-
ance fund (36-4009-0-3-701); 
Veterans Administration, United States Government life 
insurance fund (36-8150-0-7-701); 
Veterans Administration, Veterans insurance and indem-
nities (36-0120-0-1-701); 
Veterans Administration, Veterans reopened insurance 
fund (36-4010-0-3-701); and 
Veterans Administration, Veterans special life insurance 
fund (36-8455-0-8-701). 
(h) LOW-INCOME PROGRAMS.—The following programs shall be 
exempt from reduction under any order issued under this part: 
Aid to families with dependent children (75-0412-0-1-609); 
99 STAT. 1086 
PUBLIC LAW 99-177—DEC. 12, 1985 
Child nutrition (12-3539-0-1-605); 
Food stamp programs (12-3505-0-1-605 and 12-3550-0-1-
605); 
Grants to States for Medicaid (75-0512-0-1-551); 
Supplemental Security Income Program (75-0406-0-1-609); 
and 
Women, infants, and children program (12-3510-0-1-605). 
(i) IDENTIFICATION OF PROGRAMS.—For purposes of subsections (g) 
and (h), programs are identified by the designated budget account 
identification code numbers set forth in the Budget of the United 
States Government, 1986—Appendix. 
2 u s e 906. 
SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES. 
(a) EFFECT OF REDUCTIONS AND SEQUESTRATIONS.— 
(1) REDUCTIONS IN AUTOMATIC SPENDING INCREASES.—Notwith-
standing any other provision of law, any change in the 
Consumer Price Index or any other index measuring costs, 
prices, or wages (or in any component of any such index), under 
Post, p. 1092. 
a program listed in section 257(1), that is not taken into account 
for purposes of determining the amount of an automatic spend-
ing increase (if any) under such program for a fiscal year for 
Ante, p. 1072. 
which an order is issued under section 252 shall not be taken 
into account for purposes of determining any automatic spend-
ing increase during any fiscal year thereafter. 
(2) SEQUESTRATIONS.—Any amount of new budget authority, 
unobligated balances, obligated balances, new loan guarantee 
commitments, new direct loan obligations, spending authority 
(as defined in section 401(cX2) of the Congressional Budget Act 
Ante, p. 1056. 
of 1974), or obligation limitations which is sequestered or re-
Ante, p. 1072. 
duced pursuant to an order issued under section 252 is perma-
nently cancelled, with the exception of amounts sequestered 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. 
(b) TREATMENT OF FEDERAL ADMINISTRATIVE EXPENSES.— 
(1) Notwithstanding any other provision of this title, adminis-
trative expenses incurred by the departments and agencies, 
including independent agencies, of the Federal Government in 
connection with any program, project, activity, or account shall 
be subject to reduction pursuant to an order issued under 
section 252, without regard to any exemption, exception, limita-
tion, or special rule which is otherwise applicable with respect 
to such program, project, activity, or account under this part. 
(2) Notwithstanding any other provision of law, administra-
tive expenses of any program, project, activity, or account which 
is self-supporting and does not receive appropriations shall be 
subject to reduction under a sequester order, unless specifically 
exempted in this joint resolution. 
State and local 
(3) Payments made by the Federal Government to reimburse 
governments. 
or match administrative costs incurred by a State or political 
subdivision under or in connection with any program, project, 
activity, or account shall not be considered administrative ex-
penses of the Federal Government for purposes of this section, 
and shall be subject to reduction or sequestration under this 
part to the extent (and only to the extent) that other payments 
made by the Federal Government under or in connection with 
that program, project, activity, or account are subject to such 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1087 
reduction or sequestration; except that Federal payments made 
to a State as reimbursement of administrative costs incurred by 
such State under or in connection with the unemployment 
compensation programs specified in subsection (h)(1) shall be 
subject to reduction or sequestration under this part notwith-
standing the exemption otherwise granted to such programs 
under that subsection. 
(c) EFFECT OF ORDERS ON THE GUARANTEED STUDENT LOAN PRO- Education. 
GRAM.—(1) Any reductions which are required to be achieved from 
the student loan programs operated pursuant to part B of title IV of 
the Higher Education Act of 1965, as a consequence of an order 
20 use 1071. 
issued pursuant to section 252, shall be achieved only from loans ^"^^^ P- 1072. 
described in paragraphs (2) and (3) by the application of the meas-
ures described in such paragraphs. 
(2) For any loan made during the period beginning on the date 
that an order issued under section 252 takes effect with respect to a 
fiscal year and ending at the close of such fiscal year, the rate used 
in computing the special allowance payment pursuant to section 
438(bX2)(A)(iii) of such Act for each of the first four special allowance 
20 use 1087-1. 
payments for such loan shall be adjusted by reducing such rate by 
the lesser of— 
(A) 0.40 percent, or 
(B) the percentage by which the rate specified in such section 
exceeds 3 percent. 
(3) For any loan made during the period beginning on the date 
that an order issued under section 252 takes effect with respect to a 
fiscal year and ending at the close of such fiscal year, the origination 
fee which is authorized to be collected pursuant to section 438(cX2) of 
such Act shall be increased by 0.50 percent. 
20 USC 1087-1. 
(d) SPECIAL RULES FOR MEDICARE PROGRAM.— 
(1) MAXIMUM PERCENTAGE REDUCTION IN INDIVIDUAL PAYMENT 
AMOUNTS.—The maximum permissible reduction for the health 
insurance programs under title XVIII of the Social Security Act 
42 use 1395. 
for any fiscal year, pursuant to an order issued under section 
252, consists only of a reduction o
f
— 
Ante, p. 1072. 
(A) 1 percent in the case of fiscal year 1986, and 
(B) 2 percent in the case of any subsequent fiscal year, 
in each separate payment amount otherwise made for a covered 
service under those programs without regard to this part. 
(2) TIMING OF APPUCATION OF REDUCTIONS.— 
(A) IN GENERAL.—Except as provided in subparagraph (B), 
if a reduction is made under paragraph (1) in payment 
amounts pursuant to a sequestration order, the reduction 
shall be applied to payment for services furnished during 
the effective period of the order. For purposes of the pre-
vious sentence, in the case of inpatient services furnished 
for an individual, the services shall be considered to be 
furnished on the date of the individual's discharge from the 
inpatient facility. 
(B) PAYMENT ON THE BASIS OF COST REPORTING PERIODS.— 
In the case in which payment for services of a provider of 
services is made under title XVIII of the Social Security Act 
42 use 1395. 
on a basis relating to the reasonable cost incurred for the 
services during a cost reporting period of the provider, if a 
reduction is made under paragraph (1) in payment amounts 
pursuant to a sequestration order, the reduction shall be 
applied to payment for costs for such services incurred at 
99 STAT. 1088 
PUBLIC LAW 99-177—DEC. 12, 1985 
42 u s e 1395J. 
42 u s e 1395, 
1395u. 
98 Stat. 1093. 
42 u s e 1395gg. 
42 u s e 1395mm. 
Ante, p. 1072. 
98 Stat. 1311, 
1312. 
42 u s e 655, 658. 
Ante, p. 1072. 
42 u s e 670. 
state and local 
governments. 
98 Stat. 1167, 
3296. 
42 u s e 674. 
42 u s e 670. 
any time during each cost reporting period of the provider 
any part of which occurs during the effective period of the 
order, but only (for each such cost reporting period) in the 
same proportion as the fraction of the cost reporting period 
that occurs during the effective period of the order. 
(C) EFFECTIVE PERIOD OF ORDER FOR FISCAL YEAR 1986.— 
For purposes of this paragraph, the effective period of a 
sequestration order for fiscal year 1986 is the period begin-
ning on March 1, 1986, and ending on September 30, 1986. 
(3) No 
INCREASE IN BENEFICIARY CHARGES IN ASSIGNMENT-
RELATED CASES.—If a reduction in payment amounts is made 
under paragraph (1) for services for which payment under part 
B of title XVIII of the Social Security Act is made on the basis of 
an assignment described in section 1842(b)(3)(B)(ii), in accord-
ance with section 18420t))(6)(B), or under the procedure described 
in section 1870(f)(1), of such Act, the person furnishing the 
services shall be considered to have accepted payment of the 
reasonable charge for the services, less any reduction in pay-
ment amount made pursuant to a sequestration order, as pay-
ment in full. 
(4) No EFFECT ON COMPUTATION OF AAPCC.—In Computing the 
adjusted average per capita cost for purposes of section 
1876(a)(4) of the Social Security Act, the Secretary of Health and 
Human Services shall not take into account any reductions in 
payment amounts which have been or may be effected under 
this part. 
(e) TREATMENT OF CHILD SUPPORT ENFORCEMENT PROGRAM.—Any 
order issued by the President under section 252 shall accomplish the 
full amount of any required reduction in expenditures under sec-
tions 455 and 458 of the Social Security Act by reducing the Federal 
matching rate for State administrative costs under such program, as 
specified (for the fiscal year involved) in section 455(a) of such Act, to 
the extent necessary to reduce such expenditures by that amount. 
(f) TREATMENT OF FOSTER CARE AND ADOPTION ASSISTANCE PRO-
GRAMS.—Any order issued by the President under section 252 shall 
make the reduction which is otherwise required under the foster 
care and adoption assistance programs (established by part E of title 
IV of the Social Security Act) only with respect to payments and 
expenditures made by States in which increases in foster care 
maintenance payment rates or adoption assistance payment rates 
(or both) are to take effect during the fiscal year involved, and only 
to the extent that the required reduction can be accomplished by 
applying a uniform percentage reduction to the Federal matching 
payments that each such State would otherwise receive under sec-
tion 474 of that Act (for such fiscal year) for that portion of the 
State's payments which is attributable to the increases taking effect 
during that year. No State may, after the date of the enactment of 
this joint resolution, make any change in the timetable for making 
payments under a State plan approved under part E of title IV of 
the Social Security Act which has the effect of changing the fiscal 
year in which expenditures under such part are made. 
(g) FEDERAL PAY.— 
(1) IN GENERAL.—For purposes of any order issued under 
section 252— 
(A) Federal pay under a statutory pay system, and 
(B) elements of military pay. 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1089 
shall be subject to reduction under an order in the same manner 
as other administrative expense components of the Federal 
budget; except that no such order may reduce or have the effect 
of reducing the rate of pay to which any individual is entitled 
under any such statutory pay system or the rate of any element 
of military pay to which any individual is entitled under title 
37, United States Code, or any increase in rates of pay which is 
scheduled to take effect under section 5305 of title 5, United 
States Code, section 1009 of title 37, United States Code, or any 
other provision of law. 
(2) DEFINITIONS.—For purposes of this subsection: 
(A) The term "statutory pay system" shall have the 
meaning given that term in section 5301(c) of title 5, United 
States Code. 
(B) The term "elements of military pay" means— 
(i) the elements of compensation of members of the 
uniformed services specified in section 1009 of title 37, 
United States Code, 
(ii) allowances provided members of the uniformed 
services under sections 403a and 405 of such title, and 
Ante, pp. 
(iii) cadet pay and midshipman pay under section 
^^'^^^-^^^ 
203(C) of such title. 
^8 Stat. 2536. 
(C) The term "uniformed services" shall have the mean- 
37 use 203^ 
ing given that term in section 101(3) of title 37, United 
States Code, 
(h) TREATMENT OF PAYMENTS AND ADVANCES MADE WITH RESPECT 
TO UNEMPLOYMENT COMPENSATION PROGRAMS.—<1) For purposes of 
section 252— 
Ante, p. 1072. 
(A) any amount paid as regular unemplojrment compensation 
by a State from its account in the Unemployment Trust Fund 
(established by section 904(a) of the Social Security Act), 
42 use 1104. 
(B) any advance made to a State from the Federal unemploy-
ment account (established by section 904(g) of such Act) under 
title XII of such Act and any advance appropriated to the 
42 use 1321. 
Federal unemployment account pursuant to section 1203 of such 
42 use 1323. 
Act, and 
(C) any payment made from the Federal Employees Com-
pensation Account (as established under section 909 of such Act) 
42 use 1109. 
for the purpose of carrying out chapter 85 of title 5, United 
States Code, and funds appropriated or transferred to or other- 
5 use 8501 
wise deposited in such Account, 
et seg. 
shall not be subject to reduction. 
(2XA) A State may reduce each weekly benefit payment made 
under the Federal-State Extended Unemplo3nnent (Compensation 
Act of 1970 for any week of unemplojrment occurring during any 
26 USC 3304 
period with respect to which payments are reduced under an order note. 
issued under section 252 by a percentage not to exceed the percent- Ante, p. 1072. 
age by which the Federal pajrment to the State under section 204 of 
such Act is to be reduced for such week as a result of such order. 
26 use 3304 
(B) A reduction by a State in accordance with subparagraph (A) note. 
shall not be considered as a failure to fulfill the requirements of 
section 3304(aXll) of the Internal Revenue Cllode of 1954. 
26 use 3304. 
(i) TREATMENT OF MINE WORKER DISABILITY CIOMPENSATION IN-
CREASES AS AUTOMATIC SPENDING INCREASES.—An order issued by 
the President under section 252 may not result in eliminating or Ante, p. 1072. 
reducing an increase in disability benefits under the Federal Mine 
Safety and Health Act except in the manner provided for automatic 30 use 801 note. 
99 STAT. 1090 
PUBLIC LAW 99-177—DEC. 12, 1985 
Ante, p. 1072. 
Spending increases under section 252(aXlXA), and no such increase 
may, pursuant to such section, be reduced below zero. 
Agriculture and 
(j) COMMODITY CREDIT CORPORATION.— 
agricultural 
(1) PoWERS AND AUTHORITIES OF THE COMMODITY CREDIT COR-
commodities. 
PORATION.—This title shall not restrict the Commodity Credit 
Corporation in the discharge of its authority and responsibility 
as a corporation to buy and sell commodities in world trade, to 
use the proceeds as a revolving fund to meet other obligations 
and otherwise operate as a corporation, the purpose for which it 
was created. 
(2) REDUCTION IN PAYMENTS MADE UNDER CONTRACTS.—(A) 
Payments and loan eligibility under any contract entered into 
with a person by the Commodity Credit Corporation prior to the 
Ante, p. 1072. 
time an order has been issued under section 252 shall not be 
reduced by an order subsequently issued. Subject to subpara-
graph (B), after an order is issued under such section for a fiscal 
year, any cash payments made by the Commodity Credit Cor-
poration— 
(i) under the terms of any one-year contract entered into 
in such fiscal year and after the issuance of the order; and 
(ii) out of an entitlement account, 
to any person (including £iny producer, lender, or guarantee 
entity) shall be subject to reduction under the order. 
(B) Each contract entered into with producers or producer 
cooperatives with respect to a particular crop of a commodity 
and subject to reduction under subparagraph (A) shall be re-
duced in accordance with the same terms and conditions. If 
some, but not all, contracts applicable to a crop of a commodity 
have been entered into prior to the issuance of an order under 
section 252, the order shall provide that the necessary reduction 
in payments under contracts applicable to the commodity be 
uniformly applied to all contracts for the next succeeding crop 
of the commodity, under the authority provided in paragraph 
(3). 
(3) DELAYED REDUCTION IN OUTLAYS PERMISSIBLE.—Notwith-
standing any other provision of this joint resolution, if an order 
under section 252 is issued with respect to a fiscal year, any 
reduction under the order applicable to contracts described in 
paragraph (1) may provide for reductions in outlays for the 
account involved to occur in the fiscal year following the fiscal 
year to which the order applies. No other account, or other 
program, project, or activity, shall bear an increased reduction 
for the fiscal year to which the order applies as a result of the 
operation of the preceding sentence. 
(4) UNIFORM PERCENTAGE RATE OF REDUCTION AND OTHER 
UMITATIONS.—All reductions described in paragraph (2) which 
are required to be made in connection with an order issued 
under section 252 with respect to a fiscal year— 
(A) shall be made so as to ensure that outlays for each 
program, project, activity, or account involved are reduced 
by a percentage rate that is uniform for all such programs, 
projects, activities, and accounts, and may not be made so 
as to achieve a percentage rate of reduction in any such 
item exceeding the rate specified in the order; and 
(B) with respect to commodity price support and income 
protection programs, shall be made in such manner and 
under such procedures as will attempt to ensure that— 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1091 
(i) uncertainty as to the scope of benefits under any 
such program is minimized; 
(ii) any instability in market prices for agricultural 
commodities resulting from the reduction is minimized; 
and 
(iii) normal production and marketing relationships 
among agricultural commodities (including both con-
tract and non-contract commodities) are not distorted. 
In meeting the criterion set out in clause (iii) of subpara-
graph (B) of the preceding sentence, the President shall 
take into consideration that reductions under an order may 
apply to programs for two or more agricultural commod-
ities that use the same type of production or marketing 
resources or that are alternative commodities among which 
a producer could choose in making annual production deci-
sions. 
(5) No DOUBLE REDUCTION.—No agricultural price support or 
income protection program that is subject to reduction under an 
order issued under section 252 for a fiscal year may be subject, Ante, p. 1072. 
as well, to modification or suspension under such order as an 
automatic spending increase. 
(6) CERTAIN AUTHORITY NOT TO BE UMITED.—Nothing in this 
joint resolution shall limit or reduce, in any way, any appropria-
tion that provides the Commodity Credit Corporation with 
budget authority to cover the Corporation's net realized losses. 
(k) COMMUNITY AND MIGRANT HEALTH CENTERS, INDLAN HEALTH 
SERVICES AND FACIUTIES, AND VETERANS' MEDICAL CARE.— 
(1) The maximum permissible reduction in budget authority 
for any account listed in paragraph (2) for any fiscal year, 
pursuant to an order issued under section 252, shall b e ^ 
(A) 1 percent in the case of the fiscal year 1986, and 
(B) 2 percent in the case of any subsequent fiscal year. 
(2) The accounts referred to in paragraph (1) are as follows: 
(A) Community health centers (75-0350-0-1-550), 
(B) Migrant health centers (75-0350-0-1-550). 
(C) Indian health facilities (75-0391-0-1-551). 
(D) Indian health services (75-0390-0-1-551). 
(E) Veterans' medical care (36-0160-0-1-703). 
For purposes of the preceding provisions of this paragraph, 
programs are identified by the designated budget account 
identification code numbers set forth in the Budget of the 
United States Government—Appendix. 
(1) TREATMENT OF OBUGATED BALANCES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), obli-
gated balances shall not be subject to reduction under an order 
issued under section 252. 
Ante, p. 1072. 
(2) EXCEPTION.—Existing contracts in major functional cat- Contracts. 
egory 050 (other than (A) those contracts which include a 
specified penalty for cancellation or modification by the Govern-
ment and which if so cancelled or modified would result (due to 
such penalty) in a net loss to the Government for the fiscal year, 
and (B) those contracts the reduction of which would violate the 
legal obligations of the Government) shall be subject to reduc-
tion, in accordance with section 251(dX3), under an order issued 
Ante, p. 1063. 
under section 252. 
V 
(3) DEFINITION.—For purposes of this subsection, the term 
"existing contracts" shall include all military and civilian con-
99 STAT. 1092 
PUBLIC LAW 99-177—DEC. 12, 1985 
tracts in major functional category 050 which exist at the time 
Ante, p. 1072. 
the Order involved is issued under section 252. 
2 use 907. 
SEC. 257. DEFINITIONS. 
For purposes of this title: 
(1) The term "automatic spending increase" (except as other-
Ante, pp. 1082, 
wise provided in sections 255 and 256) means— 
1086. 
(A) increases in budget outlays due to changes in indexes 
in the following Federal programs: 
Black lung benefits (20-8144-0-7-601); 
Central Intelligence Agency retirement and disabil-
ity system fund (56-3400-0-1-054); 
Civil service retirement and disability fund (24-8135-
0-7-602); 
Comptrollers general retirement system (05-0107-0-
1-801); 
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 commis-
sioned 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); and 
(B) increases in budget outlays due to changes in indexes 
in the following Federal programs: 
7 use 1781 note. 
National Wool Act (12-4336-0-3-351); 
Special milk program (12-3502-0-1-605); and 
Vocational rehabilitation (91-0301-0-1-506). 
For purposes of the preceding provisions of this paragraph, 
programs are identified by the designated budget account 
identification code numbers set forth in the Budget of the 
•' United States Government, 1986—Appendix. 
(2) The terms "budget outlays" and "budg:et authority" have 
the meaning given to such terms in sections 3(1) and 3(2), 
respectively, of the Congressional Budget and Impoundment 
2 use 622. 
' 
Control Act of 1974. 
= 
(3) The term "concurrent resolution on the budget" has the 
meaning given to such term in section 3(4) of the Congressional 
Budget and Impoundment Control Act of 1974. 
(4) The term "deficit" has the meaning given to such term in 
Ante, p. 1039. 
section 3(6) of the Congressional Budget and Impoundment 
Control Act of 1974. 
(5) The term "maximum deficit amount", with respect to any 
fiscal year, means the maximum deficit amount for such fiscal 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1093 
year determined under section 3(7) of the Congressional Budget 
and Impoundment Control Act of 1974. 
Ante, p. 1039. 
(6) The term "real economic growth", with respect to any 
fiscal year, means the growth in the gross national product 
during such fiscal year, adjusted for inflation, consistent with 
Department of Commerce definitions. 
(7) The terms "sequester" and "sequestration" (subject to 
section 252(aX4)) refer to or mean the cancellation of new budget 
Ante, p. 1072. 
authority, unobligated balances, obligated balances, new loan 
guarantee commitments, new direct loan obligations, and 
spending authority as defined in section 401(cX2) of the Congres-
sional Budget Act of 1974, and the reduction of obligation Ante, p. 1056. 
limitations. 
(8) The term "account" means an item for which appropria-
tions are made in any appropriation Act used to determine the 
budget base, and, for items not provided for in appropriation 
Acts, such term means an item for which there is a designated 
budget account identification code number in the Appendix to 
the President's budget. 
PART D—BUDGETARY TREATMENT OF SOCIAL 
SECURITY TRUST FUNDS 
SEC. 
2
6
1
. 
TREATMENT 
OF 
TRUST 
FUNDS. 
(a) FISCAL YEARS 1986 THROUGH 1992.— 
(1) IN GENERAL.—Section 710 of the Social Security Act (as 42 use 9ii. 
added by paragraph (1) of subsection (a) of section 346 of the 
Social Security Amendments of 1983) is amended— 
(A) by striking out all beginning with "the" the first place 
it appears down through "Disability Insurance Trust Fund, 
the ' and inserting in lieu thereof "the"; 
(B) by striking out the comma after "Hospital Insurance 
Trust Fund"; 
(C) by striking out "sections 1401, 3101, and 3111" and 
inserting in lieu thereof "sections 1401(b), 3101(b), and 
3111(b)"; 
(D) by redesignating all after the section designation as 
subsection (\)); 
(E) by inserting immediately after the section designation 
the following: 
"(a) The receipts and disbursements of the Federal Old-Age and Taxes. 
Survivors Insurance Trust Fund and the Federal Disability Insur-
ance Trust Fund, and the taxes imposed under sections 1401(a), 
3101(a), and 3111(a) of the Internal Revenue Code of 1954, shall not 
26 USC 1401, 
be included in the totals of the budget of the United States Govern- 
3101, 3111. 
ment as submitted by the President or of the congressional budget 
and shall be exempt from any general budget limitation imposed by 
statute on expenditures and net lending (budget Outlays) of the 
United States Government."; and 
(F) by adding at the end thereof the following new subsec-
tion: 
"(c) No provision of law enacted after the date of the enactment of Prohibition. 
the Balanced Budget and Emergency Deficit C!ontrol Act of 1985 
(other than a provision of an appropriation Act that appropriates 
funds authorized under the Social Security Act as in effect on the 42 usc 1305. 
date of the enactment of the Balanced Budget and Emergency 
99 STAT. 1094 
PUBLIC LAW 99-177—DEC. 12, 1985 
Deficit Control Act of 1985) may provide for payments from the 
general fund of the Treasury to the Federal Old-Age and Survivors 
Insurance Trust Fund or the Federal Disability Insurance Trust 
Fund, or for payments from either such Trust Fund to the general 
fund of the Treasury.". 
42 use 911 note. 
(2) APPLICATION.—The amendments made by paragraph (1) 
shall apply with respect to fiscal years beginning after Septem-
ber 30,1985, and ending before October 1,1992. 
42 use 911. 
(b) FISCAL YEAR 1993 
AND THEREAFTER.—Section 710(a) of 
the 
Social Security Act (42 U.S.C. 911 note), as amended by section 
346(b) of the Social Security Amendments of 1983 (to be effective 
with respect to fiscal years beginning after September 30, 1992) is 
amended— 
(1) by inserting "(1)" after the subsection designation; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) No provision of law enacted after the date of the enactment of 
the Balanced Budget and Emergency Deficit Control Act of 1985 
(other than a provision of an appropriation Act that appropriates 
42 use 1305. 
funds authorized under the Social Security Act as in effect on the 
date of the enactment of the Balanced Budget and Emergency 
Deficit Control Act of 1985) may provide for payments from the 
general fund of the Treasury to any Trust Fund specified in para-
graph (1) or for payments from any such Trust Fund to the general 
fund of the Treasury.". 
PART E—MISCELLANEOUS AND RELATED 
PROVISIONS 
SEC. 271. WAIVERS AND SUSPENSIONS: RULEMAKING POWERS. 
2 u s e 621 note. 
(a) BuDGET ACT WAIVERS IN THE SENATE.—Section 904 of the 
Congressional Budget Act of 1974 is amended by redesignating 
subsection (c) as subsection (d), and by inserting after subsection (b) 
the following new subsection: 
Ante, pp. 1047, 
"(c) Sections 305(b)(2) and 306 of this Act may be waived or 
1050. 
suspended in the Senate only by the affirmative vote of three-fifths 
of the Members, duly chosen and sworn.". 
2 u s e 901 note. 
(b) OTHER W A I V E R S AND SUSPENSIONS IN THE SENATE.—SectionS 
301(i), 302(f), 304(b), 310(d), 310(g), and 311(a) of the Congressional 
Ante, pp. 1040, 
Budget Act of 1974 may be waived or suspended in the Senate only 
1044,1047,1053, by the affirmative vote of three-fifths of the Members, duly chosen 
^^^^ 
and sworn. This subsection shall not apply to any joint resolution 
reported or discharged pursuant to section 254(a) of this joint resolu-
Ante, p. 1078. 
tion. 
2 use 901 note. 
(c) RULEMAKING PowERS.—The provisions of this title, other than 
those relating to the activities of the executive and judicial branches 
of the Government, are enacted by the 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 
(2) with full recognition of the constitutional right of either 
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. 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1095 
SEC. 272. RESTORATION OF TRUST FUND INVESTMENTS. 
2 USC 901 note. 
(a) RESTORATION OF SOCIAL SECURITY TRUST FUNDS AND CERTAIN 
OTHER FUNDS.— 
(1) REISSUANCE OF OBUGATIONS.—The Secretary of the Treas-
ury shall immediately reissue to each fund listed in paragraph 
(3) obligations under chapter 31 of title 31, United States Code, 
3i use 3ioi 
which are identical, with respect to interest rate and maturity, 
e
< seq. 
to public debt obligations held by such fund which— 
(A) were redeemed during the period beginning with 
September 1, 1985, and ending with September 29, 1985, 
and 
(B) as determined by such Secretary on the basis of 
standard investment procedures for such fund in effect on 
September 1, 1985, would not have been redeemed if H.J. 
Res. 372 (99th Congress, 1st Session), as deemed passed by Ante, p. 1037. 
the House of Representatives on August 1, 1985, had been 
enacted into law on August 1,1985. 
Such obligations shall be substituted for obligations which are 
held by such fund on the date of the enactment of this joint 
resolution in a manner which will ensure that, after such 
substitution, the holdings of such fund will replicate to the 
maximum extent practicable the holdings which would have 
been held by such fund on such date if H.J. Res. 372 (99th 
Congress, 1st Session), as deemed passed by the House of Rep- 
Ante, p. 1037. 
resentatives on August 1, 1985, had been enacted into law on 
August 1,1985. 
(2) APPROPRIATION TO FUNDS OF INTEREST LOST ON OR AFTER 
SEPTEMBER 1, 1985.—The Secretary of the Treasury shall pay on 
the normal interest payment date to each fund listed in para-
graph (3), from amounts in the general fund of the Treasury not 
otherwise appropriated, an amount determined by such Sec-
retary to be equal to the excess of^ 
(A) the net amount of interest which would have been 
earned by such fund, during the period beginning with 
September 1, 1985, and ending with the date of the enact-
ment of this joint resolution, if all noninvestments, redemp-
tions, and disinvestments with respect to such fund which— 
(i) occurred during such period, and 
(ii) would not have occurred if H.J. Res. 372 (99th 
Congress, 1st Session), as deemed passed by the House 
Ante, p. 1037. 
of Representatives on August 1,1985, had been enacted 
into law on August 1,1985, 
had not occurred, over 
(B) the net amount of interest actually earned by such 
fund during such period. 
(3) FUNDS AFFECTED.—The funds referred to in paragraphs (1) 
and (2) are the following: 
(A) the Federal Old-Age and Survivors Insurance Trust 
Fund, 
(B) the Federal Disability Insurance Trust Fund, 
(C) the Federal Hospital Insurance Trust Fund, 
(D) the Federal Supplementary Medical Insurance Trust 
Fund, 
(E) the Railroad Retirement Account, 
(F) the Civil Service Retirement and Disability Fund, and 
99 STAT. 1096 
PUBLIC LAW 99-177—DEC. 12, 1985 
(G) all other funds (other than the funds referred to in 
subsection (b) or (c)) listed in Table III of the Monthly 
Statement of the Public Debt issued by the Department of 
the Treasury for November 30,1985. 
(b) RESTORATION OF DEPARTMENT OF DEFENSE MILITARY RETIRE-
, 
MENTFUND.— 
(1) ISSUANCE OF OBUGATIONS.—The Secretary of the Treasury 
shall immediately issue to the Department of Defense Military 
Retirement Fund obligations under chapter 31 of title 31, 
31 use 3101 
United States Code, which such Secretary, in consultation with 
^
^ 5^9 
the Secretary of Defense, determines would have been issued to 
such fund on October 1,1985, if H.J. Res. 372 (99th Congress, 1st 
Ante, p. 1037. 
Session), as deemed passed by the House of Representatives on 
August 1, 1985, had been enacted into law on August 1, 1985. 
Such obligations shall be market-based special obligations 
issued at prices, including accrued interest, prevailing for such 
obligations on October 1, 1985. Such obligations shall be sub-
stituted for all obligations which were purchased by such fund 
during the period beginning with October 1, 1985, and ending 
with November 14, 1985, with amounts which were transferred 
to such fund on October 1,1985. 
(2) APPROPRIATION TO FUND OF INTEREST LOST ON OR AFTER 
OCTOBER 1, 1985.— 
(A) IN GENERAL.—The Secretary of the Treasury shall 
immediately pay to the Department of Defense Military 
Retirement Fund, from amounts in the general fund of the 
Treasury not otherwise appropriated, an amount deter-
mined by such Secretary, in consultation with the Sec-
retary of Defense, to be equal to the excess of— 
(i) the interest which would have been earned by 
such fund during the period beginning with October 1, 
1985, and ending with November 14,1985, if the obliga-
tions issued pursuant to paragraph (1) had been issued 
on October 1,1985, over 
(ii) the amount of interest actually collected by such 
fund during such period on obligations purchased by 
such fund with amounts which were transferred to 
such fund on October 1,1985. 
(B) INVESTMENT OF INTEREST RECEIPTS.—The Secretary of 
the Treasury shall immediately invest the amount paid to 
the Department of Defense Military Retirement Fund 
pursuant to subparagraph (A) in obligations designated by 
the Secretary of Defense. Such obligations shall be market-
based special obligations issued with an issue date of 
November 15, 1985, and at prices, including accrued in-
terest, prevailing for such obligations on November 15, 
1985. 
(c) 
APPROPRIATION TO CERTAIN 
FUNDS 
WITH 
RESPECT TO 
UNINVESTED BALANCES AFTER DECEMBER 6,1985.— 
(1) IN GENERAL.—The Secretary of the Treasury shall imme-
diately pay, from amounts in the general fund not otherwise 
appropriated, to each fund which is listed in Table III of the 
Monthly Statement of the Public Debt issued by the Depart-
ment of the Treasury for November 30, 1985, and which invests 
in market-based special obligations under chapter 31 of title 31, 
31 use 3101 
United States Code, an amount equal to the interest which 
et seq. 
would have been earned by such fund during the period begin-
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1097 
ning with December 7, 1985, and ending with the date of the 
enactment of this joint resolution, if the daily balance in such 
fund which the Secretary of the Treasury was requested to 
invest during such period but was unable to invest, because of 
the expiration of the temporary debt limit, had been invested 
each day during such period, overnight, in obligations under 
such chapter 31 earning interest at a rate determined by the 
Secretary of the Treasury in accordance with the standard 
practice of the Department of the Treasury. 
(2) EXPIRATION OF TEMPORARY DEBT UMIT DEFINED.—For pur-
poses of paragraph (1), the term "expiration of the temporary 
debt limit" means the expiration of the period described in 
section 1 of the Act entitled "An Act to temporarily increase the 
limit on the public debt and to restore the investments of the 
Social Security Trust Funds and other trust funds", approved 
November 14,1985 (Public Law 99-155). 
Ante, p. 814. 
(d) ADDITIONAL APPROPRIATION TO O A S D I TRUST FUNDS OF IN-
TEREST LOST FROM ACTIONS TAKEN IN SEPTEMBER AND OCTOBER 
1984.— 
(1) IN GENERAL.—On December 31, 1985, the Secretary of the 
Treasury shall pay to the Federal Old-Age and Survivors Insur-
ance Trust Fund and the Federal Disability Insurance Trust 
Fund, from amounts in the general fund of the Treasury not 
otherwise appropriated, amounts determined under this subsec-
tion. 
(2) AMOUNT PAID TO EACH TRUST FUND.—The amount paid to 
each such Trust Fund pursuant to paragraph (1) shall be an 
amount determined jointly by the Secretary of the Treasury and 
the Secretary of Health and Human Services to be sufficient to 
fully compensate such Trust Fund for interest losses arising 
from the premature redemption, during the period beginning 
with September 1, 1984, and ending with October 31, 1984, of 
securities maturing during the period beginning with calendar 
year 1987 and ending with calendar year 1991. 
(3) LIMITATION.—The total amount paid from the general fund 
of the Treasury pursuant to pareigraph (1) shall not exceed 
$550,000,000. 
(4) ADJUSTMENTS.— 
(A) DETERMINATION OF SHORTFALLS AND EXCESSES IN PAY-
MENTS TO TRUST FUNDS.—As soon as practicable after May 
31,1986, the Secretary of the Treasury and the Secretary of 
Health and Human Services shall jointly determine any 
shortfall or excess in the amount paid to each Trust Fund 
pursuant to paragraph (1) caused by— 
(i) the difference between actual interest rates and 
interest rates assumed for purposes of paragraph (1), 
and 
(ii) the difference between the actual amount of secu-
^ ' 
rities redeemed in January 1986 for purposes of compli-
ance with section 201(1X3XB) of the Social Security Act 42 USC 401. 
and the amount of securities assumed for purposes of 
paragraph (1) to be redeemed in such month for pur-
poses of compliance with such section. 
(B) PAYMENT OF SHORTFALLS AND EXCESSES.—On June 30, 
1986, the Secretary of the Treasury shall— 
(i) in the case of a shortfall in the amount paid to 
either Trust Fund determined pursuant to subpara-
99 STAT. 1098 
PUBLIC LAW 99-177—DEC. 12, 1985 
graph (A), pay to such Trust Fund, from amounts in the 
general fund of the Treasury not otherwise appro-
priated, the amount of such shortfall, or 
(ii) in the case of an excess in the amount paid to 
either Trust Fund determined pursuant to subpara-
graph (A), pay to the general fund of the Treasury, 
from such Trust Fund, the gunount of such excess (but 
not to exceed the amount paid to such Trust Fund 
pursuant to paragraph (1)). 
2 use 921. 
SEC. 273. REVENUE ESTIMATES. 
For the purposes of revenue legislation which is income, estate 
and gift, excise, and payroll taxes (i.e.. Social Security), considered or 
enacted in any session of Congress, the Congressional Budget Office 
shall use exclusively during that session of Congress revenue esti-
mates provided to it by the Joint Committee on Taxation. During 
that session of Congress such revenue estimates shall be transmitted 
by the CiJongressional Budget Office to any committee of the House of 
Representatives or the Senate requesting such estimates, and shall 
be used by such Committees in determining such estimates. The 
Budget Committees of the Senate and House shall determine all 
estimates with respect to scoring points of order and with respect to 
the execution of the purposes of this title and the Congressional 
2 use 621 note. 
Budget and Impoundment Control Act of 1974. 
2 use 922. 
SEC. 274. JUDICIAL REVIEW. 
(a) EXPEDITED REVIEW.— 
(1) Any Member of Congress may bring an action, in the 
United States District Court for the District of Columbia, for 
declaratory judgment and injunctive relief on the ground that 
Ante, p. 1072. 
any order that might be issued pursuant to section 252 violates 
the Constitution. 
(2) Any Member of Congress, or any other person adversely 
affected by any action taken under this title, may bring an 
action, in the United States District Court for the District of 
C!olumbia, for declaratory judgment and injunctive relief 
concerning the constitutionality of this title. 
(3) Any Member of Congress may bring an action, in the 
United States District Court for the District of Columbia, for 
declaratory and injunctive relief on the ground that the terms 
of an order issued under section 252 do not comply with the 
requirements of this title. 
(4) A copy of any complaint in an action brought under 
paragraph (1), (2), or (3) shall be promptly delivered to the 
Secretary of the Senate and the Clerk of the House of Rep-
resentatives, and each House of Congress shall have the right to 
intervene in such action. 
(5) Any action brought under paragraph (1), (2), or (3) shall be 
heard and determined by a three-judge court in accordance with 
98 Stat. 3359. 
section 2284 of title 28, United States Code. 
Nothing in this section or in any other law shall infringe upon the 
right of the House of Representatives to intervene in an action 
brought under paragraph (1), (2), or (3) without the necessity of 
adopting a resolution to authorize such intervention. 
(b) APPEAL TO SUPREME COURT.—Notwithstanding any other provi-
sion of law, any order of the United States District Court for the 
District of Columbia which is issued pursuant to an action brought 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1099 
under paragraph (1), (2), or (3) of subsection (a) shall be reviewable 
by appeal directly to the Supreme Court of the United States. Any 
such appeal shall be taken by a notice of appeal filed within 10 days 
after such order is entered; and the jurisdictional statement shall be 
filed within 30 days after such order is entered. No stay of an order 
issued pursuant to an action brought under parg^aph (1), (2), or (3) 
of subsection (a) shall be issued by a single Justice of the Supreme 
Court. 
(c) EXPEDITED CONSIDERATION.—It shall be the duty of the District 
Court for the District of Columbia and the Supreme Court of the 
United States to advance on the docket and to expedite to the 
greatest possible extent the disposition of any matter brought under 
subsection (a). 
(d) NONCOMPLIANCE WITH SEQUESTRATION PROCEDURES.— 
(1) If it is finally determined by a court of competent jurisdic-
tion that an order issued by the President under section 2520?) 
Ante, p. 1072. 
for any fiscal year— 
(A) does not reduce automatic spending increases under 
any program specified in section 257(1) to the extent that 
Ante, p. 1092. 
such increases are required to be reduced by part C of this 
title (or reduces such increases by a greater extent than is 
Ante, p. 1063. 
so required), 
(B) does not sequester the amount of new budget author-
ity, new loan guarantee commitments, new direct loan 
obligations, or spending authority which is required to be 
sequestered by such part (or sequesters more than that 
amount) with respect to any program, project, activity, or 
account, or 
(C) does not reduce obligation limitations by the amount 
by which such limitations are required to be reduced under 
such part (or reduces such limitations by more than that 
amount) with respect to any program, project, activity, or 
account, 
the President shall, within 20 days after such determination is 
made, revise the order in accordance with such determination. 
(2) If the order issued by the President under section 252(b) for 
any fiscal year— 
(A) does not reduce any automatic spending increase to 
the extent that such increase is required to be reduced by 
part C of this title, 
(B) does not sequester any amount of new budget author-
ity, new loan guarantee commitments, new direct loan 
obligations, or spending authority which is required to be 
sequestered by such part, or 
(C) does not reduce any obligation limitation by the 
amount by which such limitation is required to be reduced 
under such part, 
on the claim or defense that the constitutional powers of the 
President prevent such sequestration or reduction or permit the 
avoidance of such sequestration or reduction, and such claim or 
defense is finally determined by the Supreme Court of the 
United States to be valid, then the entire order issued pursuant 
to section 252(b) for such fiscal year shall be null and void. 
Ante, p. 1072. 
(e) TIMING OF REUEF.—No order of any court granting declaratory 
or injunctive relief from the order of the President issued under 
section 252, including but not limited to relief permitting or requir-
ing the expenditure of funds sequestered by such order, shall take 
President of U.S. 
Ante, p. 1072. 
99 STAT. 1100 
PUBLIC LAW 99-177—DEC. 12, 1985 
effect during the pendency of the action before such court, during 
the time appeal may be taken, or, if appeal is taken, during the 
period before the court to which such appeal is taken has entered its 
final order disposing of such action. 
(f) ALTERNATIVE PROCEDURES FOR THE JOINT REPORTS OF THE DIREC-
TORS.— 
Ante, p. 1063. 
(1) In the event that any of the reporting procedures described 
in section 251 are invalidated, then any report of the Directors 
referred to in section 251(a) or (cXD shall be transmitted to the 
joint committee established under this subsection. 
(2) Upon the invalidation of any such procedure there is 
established a Temporary Joint Committee on Deficit Reduction, 
composed of the entire membership of the Budget Committees 
of the House of Representatives and the Senate. The Chairman 
of these two committees shall act as Co-Chairmen of the Joint 
Committee. Actions taken by the Joint Committee shall be 
determined by the majority vote of the members representing 
each House. The purposes of the Joint Committee are to receive 
the reports of the Directors as described in paragraph (1), and to 
report (with respect to each such report of the Directors) a joint 
resolution as described in paragraph (3). 
(3) No later than 5 days after the receipt of a report of the 
Directors in accordance with paragraph (1), the Joint Commit-
tee shall report to the House of Representatives and the Senate 
a joint resolution setting forth the contents of the report of the 
Directors. 
(4) The provisions relating to the consideration of a joint 
Ante, p. 1078. 
resolution under section 254(aX4) shall apply to the consider-
ation of a joint resolution reported pursuant to this subsection 
in the House of Representatives and the Senate, except that 
debate in each House shall be limited to two hours. 
(5) Upon its enactment, the joint resolution shall be deemed to 
Ante, p. 1063. 
be the report received by the President under section 251(b) or 
(cX2) (whichever is applicable). 
(g) PRESERVATION OF OTHER RIGHTS.—The rights created by this 
section are in addition to the rights of any person under law, subject 
to subsection (e). 
(h) ECONOMIC DATA, ASSUMPTIONS, AND METHODOLOGIES.—The eco-
nomic data, assumptions, and methodologies used by the Comptrol-
ler General in computing the base levels of total revenues and total 
budget outlays, as specified in any report issued by the Comptroller 
General under section 251(b) or (cX2), shall not be subject to review 
in any judicial or administrative proceeding. 
2 u s e 901 note. 
SEC. 275. EFFECTIVE DATES. 
(a) IN GENERAL.— 
(1) Except £is provided in paragraph (2) and in subsections (b) 
and (c), this title and the amendments made by this title shall 
become effective on the date of the enactment of this title and 
shall apply with respect to fiscal years beginning after Septem-
ber 30,1985. 
Ante, p. 1039. 
(2XA) The amendment made by section 201(aX2), and the 
amendment made by section 201(b) insofar as it relates to 
subsections (c), (f), and (g) of section 302 of the Congressioned 
Ante, p. 1044. 
Budget Act of 1974 and to subsections (c), (d), and (g) of section 
Ante, p. 1053. 
310 of that Act), shall become effective April 15,1986. 
PUBLIC LAW 99-177—DEC. 12, 1985 
99 STAT. 1101 
(B) The amendment made by section 212 shall become effec- 
Ante, p. 1058. 
tive February 1,1986. 
(b) EXPIRATION.— 
(1) Part C of this title, and the other provisions contained in Ante, p. 1063. 
or added by this title which are listed in paragraph (2), shall 
expire September 30,1991. 
(2) The other provisions referred to in paragraph (1) are as 
follows: 
(A) section 3(7) of the Congressional Budget and Impound-
ment Control Act of 1974 and the second sentence of section 
Ante, p. 1039. 
3(6) of such Act (as added by section 201(a)(1) of this joint 
resolution); 
(B) sections 301(i) and 304(b) of the Congressional Budget 
Act of 1974 and the portion of section 311(a) of such Act 
Ante, pp. 1040, 
which begins with "or, in the Senate" and ends with "para- 
10^7,1050. 
graph (2) of such subsection)" (as added by section 201(b) of 
this joint resolution); 
(C) sections 1105(f) and 1106(c) of title 31, United States 
Ante, p. 1063. 
Code (as added by sections 241(b) and 242(b) of this joint 
resolution); and 
(D) section 271(b) of this joint resolution. 
Ante, p. 1094. 
(c) OASDI TRUST FUNDS.—The amendments made by part D shall 
^"^«' P IO93. 
apply as provided in such part. 
Approved December 12, 1985. 
LEGISLATIVE HISTORY—H.J. Res. 372: 
HOUSE REPORTS: No. 99-351 and No. 99-433 (Comm. of Conference). 
SENATE REPORT No. 99-144 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 131 (1985): 
Aug. 1, Sept. 4, considered and passed House. 
Oct. 3-6, 8-10, considered and passed Senate, amended. 
Nov. 1, House receded and concurred in Senate amendment, in others with 
amendments. 
Nov. 1, 4-6, Senate agreed to conference report; concurred in House amend-
ments with amendments. 
Nov. 6, House disagreed to Senate amendments. 
Nov. 7, Senate insisted on amendments; agreed to further conference. 
Dec. 11, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 21, No. 50 (1985): 
Dec. 12, Presidential statement.