Omnibus Budget Reconciliation Act of 1983
PL 98-270 (H.R.4169), enacted 04/18/1984

PUBLIC LAW 98-270—APR. 18, 1984 
98 STAT. 157 
Public Law 98-270 
98th Congress 
An Act 
To provide for reconciliation pursuant to section 3 of the First Concurrent Resolution 
on the Budget for the fiscal year 1984. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
TITLE I—SHORT TITLE AND DECLARATION OF PURPOSE 
Apr. 18, 1984 
[H.R. 4169] 
Omnibus Budget 
Reconciliation 
Act of 1983. 
SHORT TITLE 
SEC. 101. This Act may be cited as the "Omnibus Budget Reconcili-
ation Act of 1983". 
PURPOSE 
SEC. 102. It is the purpose of this Act to implement the recommen-
dations which were made by specified committees of the House of 
Representatives pursuant to directions contained in section 3 of the 
First Concurrent Resolution on the Budget for the fiscal year 1984 
(H. Con. Res. 91, 98th Congress), and pursuant to the reconciliation 
requirements which were set forth by such concurrent resolution as 
provided in section 310 of the Congressional Budget Act of 1974. 
TITLE II—COMMITTEE ON POST OFFICE AND CIVIL SERVICE 
2 u s e 641. 
COST-OF-LIVING ADJUSTMENTS UNDER THE CIVIL SERVICE RETIREMENT 
SYSTEM 
SEC. 201. (a) Subsections (a) and O
t
)
) of section 8340 of title 5, 
United States Code, are amended to read as follows: 
"(a) For the purpose of this section— 
"(1) the term 'base quarter', as used with respect to a year, 
means the calendar quarter ending on September 30, of such 
year; and 
"(2) the price index for a base quarter is the arithmetical 
mean of such index for the 3 months comprising such quarter. 
"
O
t
>
) Except as provided in subsection (c) of this section, effective 
December 1 of each year, each annuity pavable from the Fund 
having a commencing date not later than such December 1 shall be 
increased by the percent change in the price index for the base 
quarter of such year over the price index for the base quarter of the 
preceding year in which an adjustment under this subsection was 
made, adjusted to the nearest Vio of 1 percent.". 
(bXl) The amendments made by subsection (a) shall take effect on 
the date of the enactment of this Act, except that no adjustment 
under section 8340(b) of title 5, United States Code (as amended by 
such subsection), shall be made during the period beginning on the 
date of the enactment of this Act and ending November 30, 1984. 
(2XA) For purposes of the first adjustment under section 8340(b) of 
title 5, United States Code (as amended by subsection (a)), the base 
Effective date. 
5 u s e 8340 note. 
98 STAT. 158 
PUBLIC LAW 98-270—APR. 18, 1984 
quarter ending September 30,1983, shall be considered to have been 
a base quarter in which an adjustment under such section (as so 
£unended) was made. 
(B) As used in subpar£igraph (A), the term ''base quarter" has the 
meaning given such term by section 8340(aXl) of title 5, United 
States Code (as amended by subsection (a)). 
(cXD Section 301(aX3) of the Omnibus Budget Reconciliation Act of 
5 use 8340 note. 1982 is amended by striking out "(as determined by the Office of 
Personnel Management on the basis of the calendar year ending in 
such year)" and inserting in lieu thereof "(as determined by the 
Office of Personnel Management under section 8340(b) of title 5, 
United States Code)". 
(2) Section 301(b) of the Omnibus Budget Reconciliation Act of 
5 use 8340 note. 1982 is hereby repealed. 
PAY ADJUSTMENT FOR FEDERAL EMPLOYEES 
5 use 5305 note. 
SEC. 202. (aXD Notwithstanding any other provision of law, in the 
case of fiscal year 1984, the overall percentage of the adjustment 
under section 5305 of title 5, United States Code, in the rates of pay 
5 use 5332. 
under the General Schedule, and in the rates of pay under the other 
statutory pay systems, shall be an increase of 4 percent. 
(2) Each increase in a pay rate or schedule which takes effect 
pursuant to paragraph (1) shall, to the maximum extent practicable, 
be of the same percentage, and shall take effect as of the first day of 
the first applicable pay period commencing on or after January 1 of 
such fiscal year. 
5 use 5343 note. 
(bXD Notwithstanding any other provision of law, in the case of a 
prevailing rate employee described in section 5342(aX2) of title 5, 
United States Code, or an employee covered by section 5348 of such 
title— 
(A) any increase in the rate of pay payable to such employee 
which would result from the expiration of the limitation con-
5 use 5343 note. 
tained in section 107(a) of Public Law 97-377 (96 Stat. 1909) 
shall not take effect; and 
5 use 5341. 
(B) any adjustment under subchapter IV of chapter 53 of such 
title to any wage schedule or rate applicable to such employee 
which results from a wage survey and which is to become 
effective during the fiscal year beginning October 1, 1983, shall 
not exceed the amount which is 4 percent above the schedule or 
rate payable on September 30,1983 (determined with regard to 
the limitation contained in section 107(a) of Public Law 97-377), 
and shall not be effective with respect to any pay period com-
mencing before January 1 of such fiscal year. 
(2) Notwithstanding the provisions of section 90)) of Public Law 
5 use 5343 
92-392 or section 704(b) of the Civil Service Reform Act of 1978, the 
^°^^- 
provisions of paragraph (1) shall apply (in such manner as the Oiffice 
of Personnel Management shall prescribe) to prevailing rate 
employees to whom such section 9(b) applies, except that the provi-
sions of paragraph (1) shall not apply to any increase in a wage 
schedule or rate which is required by the terms of a contract entered 
into before the date of the enactment of this Act. 
(3) The provisions of paragraph (1) shall not apply with respect to 
wage adjustments for prevailing rate supervisors under the supervi-
sory pay plan published in the Federal Register on May 21,1982 (47 
Fed. Reg. 22100). 
PUBLIC LAW 98-270—APR. 18, 1984 
98 STAT. 159 
TITLE III—COMMITTEE ON SMALL BUSINESS 
SEC. 301. Section 7(c) of the Small Business Act is amended by Disaster 
adding the following: 
assistance. 
''(5) Notwithstanding the provisions of any other law, the i^^|c 636. 
interest rate on the Federal share of any loan made under 
subsection O^Xl) and (bX2) on account of a disaster commencing 
on or after October 1,1982, shall be— 
"(A) in the case of a homeowner unable to secure credit 
elsewhere, the rate prescribed by the Administration but 
not more than one-half the rate determined by the Secre-
tary of the Treasury taking into consideration the current 
average market 3deld on outstanding marketable obliga-
tions of the United States with remaining periods to matu-
rity comparable to the average maturities of such loan plus 
an additional charge of not to exceed 1 per centum per 
annum as determined by the Administrator, and adjusted 
to the nearest one-eighth of 1 per centum, but not to exceed 
4 per centum per annum; 
"(B) in the case of a homeowner able to secure credit 
_
.
, 
elsewhere, the rate prescribed by the Administration but 
not more than the rate determined by the Secretary of the 
Treasury taking into consideration the current average 
market yield on outstanding marketable obligations of the 
United States with remaining periods to maturity compara-
ble to the average maturities of such loans plus an addi-
tional charge of not to exceed 1 per centum per annum as 
;. •
? 
determined by the Administrator, and adjusted to the near-
est one-eighth of 1 per centum, but not to exceed 8 per 
.; 
centum per annum; 
"(C) in the case of a business concern unable to obtain 
credit elsewhere, not to exceed 4 per centum per annum; 
-, 
"(D) in the case of a business concern able to obtain credit 
elsewhere, the rate prescribed by the Administration but 
not in excess of the lowest of (i) the rate prevailing in the 
private market for similar loans, (ii) the rate prescribed by 
the Administration as the maximum interest rate for 
deferred participation (guaranteed) loans under section 7(a) 
of this Act, or (iii) 8 per centum per annum. Loans under 
this subparagraph shall be limited to a maximum term of 
three years. 
"(6) Notwithstanding the provisions of any other law, such 
loans, subject to the reductions required by subparagraphs (A) 
and (B) of paragraph IMD, shall be in amounts equal to 100 15 use 636. 
per centum of loss. The interest rates for loans made under 
paragraphs 7(b) (1) and (2), as determined pursuant to para-
graph (5), shall be the rate of interest which is in effect on the 
date of the disaster commenced: Provided, That no loan under 
paragraphs 7(b) (1) and (2) shall be made, either directly or in 
cooperation with banks or other lending institutions through 
agreements to participate on an immediate or deferred (guaran-
teed) basis, if the total amount outstanding and committed to 
the borrower under subsection 7(b) would exceed $500,000 for 
each disaster unless an applicant constitutes a major source of 
employinent in an area suffering a disaster, in which case the 
Administration, in its discretion, may waive the $500,000 limita-
tion: Provided jfiirther. That the Administration, subject to the 
98 STAT. 160 
PUBLIC LAW 98-270—APR. 18, 1984 
reductions required by subparagraphs (A) and (B) of paragraph 
15 use 636. 
7(b)(1), shall not reduce the amount of eligibility for any home-
owner on account of loss of real estate to less than $100,000 for 
each disaster nor for any homeowner or lessee on account of loss 
of personal property to less than $20,000 for each disaster, such 
sums being in addition to any eligible refinancing. 
With respect to any loan which is outstanding on the date of 
enactment of this paragraph and which was made on account of a 
disaster commencing on or after October 1, 1982, the Administrator 
shall make such change in the interest rate on the balance of such 
loan as is required herein effective as of the date of enactment.". 
15 use 631 note. 
SEC. 302. Section 20 of the Small Business Act is amended as 
follows: 
(1) by striking all of paragraph (5) of subsection (q) after the 
word 
Administration' 
and by inserting the following "is 
authorized to make $100,000,000 in direct loans and for the 
15 use 636. 
programs authorized by sections 7(b)(1) and 7(bX2) of this Act, 
the Administration is authorized to make $500,000,000 in direct 
loans."; and 
(2) by adding the following new subsection: 
"(t) For each of fiscal years 1985 and 1986, for the programs 
authorized by sections 7(b)(1) and 7(bX2) the Administration is 
authorized to make $500,000,000 in direct loans and for each of such 
years for the programs authorized by sections 7(b)(3) and 70t)X4) the 
Administration also is authorized to make $100,000,000 in direct 
loans.". 
15 use 647. 
SEC. 303. Section 18(a) of the Small Business Act is amended by 
striking "October 1, 1983" and by inserting "October 1, 1986'\ 
15 use 636. 
SEC. 304. Section 7(b) of the Small Business Act is amended as 
follows: 
(1) by striking out the period at the end of paragraph (2) and 
by inserting in lieu thereof a semicolon; and 
Disaster 
(2) by adding after 
paragraph (3) the following new 
assistance. 
paragraph: 
(4) To make such disaster loans (either directly or in coopera-
tion with banks or other lending institutions through agree-
ments to participate on an immediate or deferred basis) as the 
Administration may determine to be necessary to assist, or 
refinance all or part of the existing indebtedness (specifically 
including any direct loans under section 7(a) of this Act which 
were made to small businesses affected by currency fluctuations 
and exchange freezes), of any small business concern located in 
an area of economic dislocation that is the result of the drastic 
fluctuation in the value of the currency of a country contiguous 
to the United States and adjustments in the regulation of its 
monetary system if such concern is unable to obtain credit 
elsewhere. The Governor of a State may certify to the Adminis-
tration (A) that small business concerns within the State have 
suffered substantial economic injury as a result of such eco-
nomic dislocation, and (B) that such concerns are in need of 
financial assistance which is not available on reeisonable terms. 
Such economic dislocations must be of such magnitude that 
without the benefit of disaster loans provided hereunder a 
significant number of otherwise financially sound small busi-
nesses in the impacted regions or business sectors would either 
become insolvent or be unable to return quickly to their former 
level of operation. No disaster loan made hereunder shall 
PUBLIC LAW 98-270—APR. 18, 1984 
98 STAT. 161 
exceed $100,000, nor shall the proceeds thereof be used to reduce 
the exposure of any other lender. The Administration may 
permit deferral of pajonent of principal and interest for one 
year on loans made hereunder.". 
SEC. 305. Section 20(q) of the Small Business Act is amended by 
striking from paragraph (5) "section 7(bX3)" and inserting in lieu 
thereof "sections 7(bX3) and 7(bX4)". 
SEC. 306. Paragraph (1) of section 4(c) of the Small Business Act is 
further amended by inserting "7(bX4)," after "7(bX3),". 
SEC. 307. The amendments made by sections 304 and 305 of this 
title shall apply to economic dislocations certified by any State 
Grovemor to the Small Business Administration after the date of 
enactment of this Act providing such dislocation commenced since 
January 1,1982. 
SEC. 308. Section 7(bX3) of the Small Business Act is amended as 
follows: 
(1) by inserting "continuation of," after "in effecting"; and 
(2) by inserting the following at the end of such paragraph: 
"For the purposes of this paragraph, the impact of the 1983 
Payment-in-Kind Land Diversion prc^am, or any successor 
Payment-in-Kind program with a similar impact on the small 
business community, shall be deemed to be a consequence of 
Federal Government action; and". 
SEC. 309. Section 7(cX6) of the Small Business Act is further 
amended by adding the following at the end of the second proviso: 
"Employees of concerns sharing a common business premises shall 
be aggregated in determining 'major source of employment' status 
for nonprofit applicants owning such premises.". 
SEC. 310. Section 3 of the Small Business Act is amended by 
adding the following new subsection at the end thereof: 
"(j) For the purposes of section 70t)X2) of this Act, the term 'small 
agricultural cooperative' means an association (corporate or other-
wise) acting pursuant to the provisions of the Agricultural Market-
ing Act (12 U.S.C. 1141J), whose size does not exceed the size 
standard established by the Administration for other similar agri-
cultural small business concerns. In determining such size, the 
Administration shall regard the association as an entity and shall 
not include the income or employees of any member shareholder of 
such cooperative: Provided, That such an association shall not be 
deemed to be a small agricultural cooperative unless each member 
of the board of directors of the association, or each member of the 
governing body of the association if it is not incorporated, also 
individually qualifies as a small business concern.". 
SEC. 311. Section 7(bX2) of the Small Business Act is amended as 
follows: 
(1) by striking "small business concern" and inserting in 
lieu thereof "small business concern or small agricultural 
cooperative"; 
(2) by striking "small business concerns" and inserting in lieu 
thereof "small business concerns or small agricultural coopera-
tives"; and 
(3) by striking "the concern" and inserting in lieu thereof 
"the concern or the cooperative". 
SEC. 312. The amendments made by sections 310 £ind 311 of this 
title shall apply to loans granted on the basis of any disaster with 
respect to which a declaration has been issued after September 1, 
1982, under section 7(bX2) (A), (B), or (C) of the Small Business Act or 
15 u s e 631 note. 
15 use 633. 
15 use 636 note. 
15 use 636. 
Employment 
and unemploy-
ment. 
Ante, p. 159. 
Agricultural 
cooperative. 
15 use 632. 
15 use 636. 
15 use 636. 
15 use 632 note. 
15 use 636. 
98 STAT. 162 
PUBLIC LAW 98-270—APR. 18, 1984 
15 u s e 636. 
Effective date. 
15 u s e 632 note. 
Report. 
with respect to which a certification has been made after such date 
under section 7(bX2XD) of such Act. 
SEC. 313. This title shall take effect October 1,1983. 
TITLE IV—ADDITIONAL PROPOSAL FOR DEFICIT REDUCTION 
FINDINGS 
SEC. 401. The Congress finds and declares that— 
(1) current projections indicate that the Federal Govern-
ment's budget deficits will continue at unacceptably high levels 
for the foreseeable future; 
(2) these high deficits can place upward pressure on interest 
rates, reduce investment, raise the trade deficit, decrease 
emplojnnent, and threaten the vitality of economic recovery; 
and 
(3) reduction of these unacceptably high deficits requires a 
comprehensive plan to slow the growth of Federal spending, 
including military and entitlement spending, and to increase 
revenues. 
DOMESTIC ECONOMIC SUMMIT CONFERENCE TO REDUCE THE BUDGET 
DEFICIT 
SEC. 402. (a) The President shall convene a domestic economic 
summit conference to address the dangerous economic situation 
created by these projected large deficits. 
Qoi) The summit conference shall consist of the President, the 
Speaker of the House of Representatives, the President pro tempore 
of the Senate, the majority leaders and minority leaders of the 
House of Representatives and Senate, and other appropriate partici-
pants from the Congress and the executive branch responsible for 
the development of economic policy. 
(c) No later than forty-five days after the date of the enactment of 
this Act, this summit conference shall develop and report to Con-
gress a comprehensive plan to reduce the projected deficits in the 
Budget of the United States. 
Approved April 18, 1984. 
^mbiMi! 
LEGISLATIVE HISTORY—H.R. 4169 (S. 2062): 
HOUSE REPORT No. 98-425 (eomm. on the Budget). 
SENATE REPORT No. 98-300 accompanying S. 2062 (Comm. on the Budget). 
eONGRESSIONAL RECORD: 
Vol. 129 (1983): Oct. 25, considered and passed House. 
Vol. 130 (1984): Apr. 5, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 20, No. 16 (1984): 
Apr. 18, Presidential statement. 
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