.--Section 301(a) of 
the Congressional Budget Act of 1974 (2 U.S.C. 632(a)) is amended by 
striking paragraph (4) and inserting the following:
            ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, Medicare, Medicaid and other health-related spending, 
        other direct spending (excluding interest), contingencies, and 
        net interest;''.
    (b) Long-Term Budgeting.--Section 301 of the Congressional Budget 
Act of 1974 is amended by adding at the end the following new 
subsection:
    ``(k) Long-Term Budgeting.--In addition to the levels required to 
be included in a concurrent resolution on the budget under subsection 
(a), such concurrent resolution shall set forth appropriate levels, as 
a percent of the current gross domestic product of the United States, 
for total Federal revenues, total outlays, debt held by the public, and 
the surplus or deficit in the budget for the fiscal year 10 years, 20 
years, and 30 years after the last fiscal year of the concurrent 
resolution on the budget.''.

SEC. 9. LONG-TERM RECONCILIATION.

    (a) Long-Term Reconciliation.--Section 310 of the Congressional 
Budget Act of 1974 is amended by adding at the end the following new 
subsection:
    ``(h) Long-Term Reconciliation Directives in a Concurrent 
Resolution on the Budget.--
            ``(1) Long-term reconciliation directives.--In addition to 
        a reconciliation measure as set forth in subsection (a), a 
        concurrent resolution on the budget for any fiscal year, to the 
        extent necessary to effectuate the spending levels as set forth 
        for such categories in section 301(a) (providing for long-term 
        spending levels as a percentage of gross domestic product) of 
        such resolution, may--
                    ``(A) specify the total amount by which Medicare, 
                Medicaid, the OASDI Trust Funds, and other direct 
                spending outlays are to be reduced within the 
                jurisdiction of a committee as a percentage of gross 
                domestic product of such fiscal year; and
                    ``(B) direct that committee to determine and 
                recommend changes to accomplish a reduction of such 
                total amount for such categories as a percentage of 
                gross domestic product.
            ``(2)  Limitation on amendments to long-term reconciliation 
        legislation.--(A) It shall not be in order in the House of 
        Representatives to consider any amendment to a reconciliation 
        bill or reconciliation resolution if such amendment decreases 
        outlay reductions below the level of such outlay reductions 
        provided (for the fiscal years covered) in the reconciliation 
        instructions which relate to such long-term reconciliation 
        bill.
            ``(B) It shall not be in order in the Senate to consider 
        any amendment to a reconciliation bill or reconciliation 
        resolution if such amendment decreases outlay reductions below 
        the level of such outlay reductions provided (for the fiscal 
        years covered) in the reconciliation instructions which relate 
        to such long-term reconciliation bill.
            ``(C) Subparagraphs (A) and (B) shall not apply if a 
        declaration of war by the Congress is in effect.
            ``(D) For purposes of this section, the levels of outlays 
        as a percentage of a gross domestic product 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.
            ``(E) In the Senate, a motion to strike a provision shall 
        always be in order.
            ``(3) Subject matter.--Subject matter included in a long-
        term reconciliation bill may be any of the following:
                    ``(A) Any part of the Medicare Program.
                    ``(B) Medicaid and other health-related spending.
                    ``(C) The Old-Age, Survivors, and Disability 
                Insurance Trust Fund to make the program solvent.
                    ``(D) Other direct spending.
            ``(4) Application.--Subsections (b)(1)(E) and (F) of 
        section 313 and subsections (c), (d), and (g) of this section 
        shall not apply to long-term reconciliation measures reported 
        under this subsection. Reforms that are necessary for the 
        fundamental restructuring of any program included in any such 
        measure shall not be deemed to be extraneous for purposes of 
        such section 313.''.
    (b) Conforming Amendment.--Section 310(b) of the Congressional 
Budget Act of 1974 is amended by striking ``subsection (a)'' and 
inserting ``subsections (a) and (h)''.

SEC. 10. LONG-TERM SPENDING INCREASE POINT OF ORDER.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(as amended by section 6) is further amended by adding at the end the 
following new section:

              ``long-term spending increase point of order

    ``Sec. 317.  (a) Congressional Budget Office Analysis of 
Proposals.--The Director of the Congressional Budget Office shall, to 
the extent practicable, prepare for each bill and joint resolution 
reported from committee, and amendments thereto and conference reports 
thereon, an estimate of whether the measure causes, relative to current 
law, a net increase in direct spending in excess of $5,000,000,000 in 
any of the four ten fiscal-year periods beginning in the first fiscal 
year after the last fiscal year covered in the most recently enacted 
concurrent resolution on the budget.
    ``(b) In the Senate.--It shall not be in order in the Senate to 
consider any bill, joint resolution, amendment, motion, or conference 
report that causes a net increase in deficits in excess of 
$5,000,000,000 in any of the four ten fiscal-year periods beginning in 
the first fiscal year after the last fiscal year covered in the most 
recently enacted concurrent resolution on the budget.
    ``(c) In the House of Representatives.--It shall not be in order in 
the House of Representatives to consider any bill, joint resolution, 
amendment, motion, or conference report that causes a net increase in 
deficits in excess of $5,000,000,000 in any of the four ten fiscal-year 
periods beginning in the first fiscal year after the last fiscal year 
covered in the most recently enacted concurrent resolution on the 
budget.
    ``(d) Determinations of Budget Levels.--For purposes of this 
section, the levels of net deficit increases shall be determined on the 
basis of estimates provided by the chairmen of the Senate and House 
Committees on the Budget, as applicable.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 319 the 
following new item:

``Sec. 317. Long-term spending increase point of order.''.

SEC. 11. CBO AND OMB PROJECTIONS.

    (a) Congressional Budget Office.--Section 308 of the Congressional 
Budget Act of 1974 is amended by adding at the end the following new 
subsections:
    ``(e) Long-Term Projections.--Each year, the Director of the 
Congressional Budget Office shall issue a report projecting total 
spending, revenue, deficits, and debt for at least 40 years beginning 
with the first fiscal year after the last fiscal year covered in the 
most recently enacted concurrent resolution on the budget as a 
percentage of current projected gross domestic product annually based 
on current law and current law levels as modified to maintain current 
policy.
    ``(f) CBO Spending Review Report Issuance.--As a component of the 
report required by subsection (e), the Director of the Congressional 
Budget Office shall issue a Spending Review Report and transmit such 
report to the Committees on the Budget of the House of Representatives 
and the Senate.
    ``(g) Content of Spending Review Report.--The content of the 
Spending Review Report referred to in subsection (f) shall include 
analyses of the following:
            ``(1) OASDI.--The solvency of the Old-Age, Survivors, and 
        Disability Insurance Trust Fund.
            ``(2) Medicare.--The long-range sustainability of the 
        spending levels of Medicare.
            ``(3) Medicaid and other health-related spending.--The 
        long-range sustainability of the spending levels of Medicaid 
        and other health-related spending.
            ``(4) Other direct spending.--The long-range sustainability 
        of spending levels of other direct spending.
            ``(5) Long-term sustainability.--The long-term 
        sustainability of total Government outlays, deficit, and debt.
            ``(6) Net interest.--Projections of net interest.
    ``(h) Definitions.--For purposes of the development of the Spending 
Review Report referred to in subsection (f):
            ``(1) Solvency of the oasdi.--The term `solvency' as used 
        in this section means the solvency of the Old-Age Security and 
        Disability Insurance Trust Funds over a 75-year period 
        beginning in the year the Spending Review Report is reported 
        and in the last year of that period.
            ``(2) Sustainability.--The term `sustainability' means that 
        the projected growth in the Medicare program, the Medicaid 
        program or other health-related spending, or any other direct 
        spending program (other than the Old-Age Security and 
        Disability Insurance Trust Funds or the Medicare or Medicaid 
        program), beginning with the first fiscal year after the last 
        fiscal year covered in the most recently enacted concurrent 
        resolution on the budget, does not exceed the annual rate of 
        growth of the gross domestic product of the United States.''.
    (b) Office of Management and Budget.--Section 1105(a) of title 31, 
United States Code, is amended by redesignating the second paragraph 
(37) as paragraph (39) and by adding at the end the following new 
paragraph:
            ``(40) long-term projections of total spending over 30 
        years (or 75 years in the case of Social Security) as a 
        percentage of gross domestic product annually and the impact of 
        proposed policies over that period.''.

SEC. 12. LONG-TERM ANALYSIS BY CONGRESSIONAL BUDGET OFFICE OF 
              LEGISLATION.

    (a) Long-Term Analysis by Congressional Budget Office.--(1) Part A 
of title IV of the Congressional Budget Act of 1974 is amended by 
adding at the end the following new section:

   ``long-term analysis by congressional budget office of legislation

    ``Sec. 407.  (a) Analysis.--The Director of the Congressional 
Budget Office shall, to the extent practicable, prepare--
            ``(1) for major legislation reported by any committee of 
        the House of Representatives or the Senate; and
            ``(2) for any bill or resolution so requested by the 
        chairman or ranking member of the Committee on the Budget or 
        the chairman or ranking member of the committee of 
        jurisdiction,
and submit to such committee or to the chairman of the Committee on the 
Budget making such request an estimate of the costs which would be 
incurred in carrying out such bill or resolution for the ten fiscal-
year period beginning with the first fiscal year after the last fiscal 
year covered by the most recently enacted concurrent resolution on the 
budget subject to the analysis of such bill or resolution by the 
Director under section 402, together with the basis for each such 
estimate. The estimates, comparison, and description so submitted shall 
be included in the report accompanying such bill or resolution if 
timely submitted to such committee before such report is filed.
    ``(b) Definition.--As used in this section, the term `major 
legislation' means any bill or joint resolution if the gross spending 
or revenue effect of such bill or resolution for any fiscal year for 
which an estimate was made under section 402 is greater than .25 
percent of the estimated gross domestic product (GDP) of the United 
States for the fiscal year.''.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget Act of 1974 is amended by inserting after the item 
relating to section 406 the following new item:

``Sec. 407. Long-term analysis by Congressional Budget Office of 
                            legislation.''.
    (b) Analysis by Congressional Budget Office.--Paragraph (1) of 
section 402 of the Congressional Budget Act of 1974 is amended by 
striking ``in each of the 4 fiscal years following such fiscal year'' 
and inserting ``in at least each of the 9 fiscal years following such 
fiscal year''.

SEC. 13. LONG-TERM BUDGETING REFLECTED IN PRESIDENT'S BUDGET 
              SUBMISSIONS.

    Paragraphs (5), (6), and (12)(B) of section 1105(a) of title 31, 
United States Code, are amended by striking ``4 fiscal years after that 
year'' and inserting ``9 fiscal years after that year and the ten 
fiscal-year period beginning thereafter''.

SEC. 14. GAO AND OMB STATEMENTS OF THE FEDERAL GOVERNMENT'S FINANCIAL 
              CONDITION.

    (a) Government Accountability Office.--Not later than 6 weeks after 
the President's budget submission under section 1105(a) of title 31, 
United States Code, or 6 weeks after the President submits his budget 
review, the Government Accountability Office shall submit a report on 
the financial condition of the Government, including the long-term 
unfunded obligations.
    (b) Definition of Long-Term Unfunded Obligations.--Section 3 of the 
Congressional Budget Act of 1974 is amended by adding at the end the 
following new paragraph:
            ``(12) The term `unfunded obligations' means the dollar sum 
        of the Total Net Position as displayed in the United States 
        Government Balance Sheets contained within the most recently 
        published Financial Report of the United States Government; 
        plus the 75-year actuarial balances, using the intermediate 
        open-group assumption, of Medicare's Hospital Insurance, 
        Supplementary Medical Insurance, and Prescription Drug programs 
        contained within the most recently published Annual Report of 
        the Boards of Trustees of the Federal Hospital Insurance and 
        Federal Supplementary Medical Insurance Trust Funds; plus the 
        75-year actuarial balance, using the intermediate open group 
        assumption, of the Old-Age Survivors and Disability Insurance 
        program contained within the most recently published Annual 
        Report of the Board of Trustees of the Federal Old-Age and 
        Survivors Insurance and Federal Disability Insurance Trust 
        Funds; plus the 75-year actuarial balance of the Black Lung 
        Disability Trust Fund (20-8144-0-7-601); plus the 75-year 
        actuarial balance of the Rail Industry Pension Fund (60-8011-0-
        7-601) under section 255(g)(1)(B) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.
    (c) President's Budget Submission.--Section 1105(a) of title 31, 
United States Code, (as amended by section 8(b)) is further amended by 
adding at the end the following:
            ``(41) a report on the financial condition of the 
        Government, including the long-term unfunded obligations.''.

SEC. 15. MEDICARE TRIGGER.

    (a) Section 803.--Section 803 of the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003 (Public Law 108-173) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (3)(A), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (3)(B), by striking the period at 
                the end and inserting a semicolon;
                    (C) in paragraph (3), by adding at the end the 
                following new subparagraphs:
                    ``(C) the most recent report of the Medicare 
                Trustees (including any illustrative scenario prepared 
                by the Office of the Actuary);
                    ``(D) an analysis by the Chief Actuary of Medicare 
                on the proposed legislation; and
                    ``(E) the assessment of the Committee on the Budget 
                of the report of the Trustees and the analysis by the 
                Chief Actuary of Medicare on the proposed 
                legislation.''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(4) Effective certification.--The certification referred 
        to in paragraph (3) shall have no force or effect unless and 
        until all of the criteria set forth therein are inserted in the 
        Congressional Record.'';
            (2) by amending subsection (c) to read as follows:
    ``(c) Fallback Procedure for Floor Consideration if the House Fails 
To Vote on Final Passage by July 30.--After July 30 of any year during 
which the President is required to submit proposed legislation to 
Congress under section 1105(h) of title 31, United States Code, unless 
the House of Representatives has voted on final passage of any medicare 
funding legislation for which there is an affirmative certification 
under subsection (b)(3)(A), then, after the expiration of 30 calendar 
days (and concurrently 5 legislative days), the medicare funding 
legislation shall be discharged from any committee to which it has been 
referred.''; and
            (3) by adding at the end the following new subsection:
    ``(h) Inapplicability of Procedures to Certain Legislation.--
Procedures set forth in this section shall not apply to any legislation 
including--
            ``(1) changes in budget authority and outlays not within 
        function 570 (spending outside the medicare program); or
            ``(2) revenue increases other than those receipts from a 
        dedicated medicare financing source.''.
    (b) Section 804.--Section 804 of the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003 (Public Law 108-173) is 
amended--
            (1) in subsection (d)(1), by striking ``, then any 
        Senator'' and all that follows and inserting ``, then the 
        medicare funding legislation measure shall be discharged from 
        the committee.''; and
            (2) in subsection (e), by adding at the end the following 
        new sentence: ``The motion to proceed shall be nondebatable.''.
    (c) Section 805.--(1) Subtitle A of title VIII of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003 (Public 
Law 108-173) is amended by adding at the end the following new section:

``SEC. 805. DEDICATION OF SAVINGS.

    ``The chairman of the Committee on the Budget of the House of 
Representatives or the Senate, as appropriate, shall adjust the 
appropriate allocations, aggregates, and other levels to reflect the 
budget impact achieved by legislation introduced pursuant to section 
803(a) for purposes of the Congressional Budget Act of 1974, the 
Balanced Budget Emergency and Deficit Control Act of 1985, the Rules of 
the House of Representatives, or the Standing Rules of the Senate.''.
    (2) The table of contents set forth in section 1(d) of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003 (Public 
Law 108-173) is amended by inserting after the item relating to section 
804 the following new item:

``Sec. 805. Dedication of savings.''.
Output: Balancing Our Obligations for the Long-Term Act of 2011 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to establish for FY2030-FY2050: (1) direct spending limits, and (2) total spending limits. Prescribes certain deficit control mechanisms (sequestration and reduction orders) for such period.

Requires the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) to: (1) determine common scorekeeping guidelines, and (2) prepare estimates in conformance with such guidelines. Prescribes and/or revises requirements for discretionary, direct, total, and deficit sequestration preview and final reports. Eliminates Pay-As-You-Go reports.

Adds the following programs and activities to the list exempted from sequestration orders: (1) obligated balances of budget authority carried over from prior fiscal years; (2) federal obligations required to be paid under the U.S. Constitution or legally contractual obligations; (3) Claims, Judgments, and Relief Acts (20-1895-0-1-808); and (4) intragovernmental transfers.

Modifies and/or repeals certain mandatory general and special sequestration rules.

Amends the Act to establish the baseline for the three 10-fiscal years beginning after the last such outyear based on enacted law, as an estimate of current year levels of budget authority, outlays, or receipts for: (1) discretionary spending; (2) Medicare; (3) Medicaid and other health-related spending; (4) other direct spending; (5) social security; (6) other categories, as appropriate; and (7) net interest.

Amends the Congessional Budget Act of 1974 (CBA) to require the Director of the Congressional Budget Office (CBO) to make an annual projection for at least 40 years of total spending, revenue, deficits, and debt beginning with the first fiscal year after the last fiscal year covered in the most recently enacted budget resolution as a percentage of current projected gross domestic product (GDP), based on current law and current law levels as modified to maintain current policy.

 Requires CBO to issue an annual Spending Review Report on the solvency of the Old-Age, Survivors, and Disability Insurance (OASDI) Trust Fund and the long-range sustainability of the spending levels of Medicare, Medicaid and other health-related spending as well as other direct spending. Prescribes procedures for introduction and expedited consideration in each chamber of spending review legislation if such report indicates OASDI Trust Fund insolvency or the non-sustainability of other specified direct spending.

Replaces the requirement that budget resolutions include new budget authority and outlays for each major functional category with a requirement that they include subtotals of new budget authority and outlays for nondefense discretionary spending, defense discretionary spending, Medicare, Medicaid and other health-related spending, other direct spending (excluding interest), contingencies, and net interest.

Requires budget resolutions to set forth appropriate levels, as a percent of the current GDP, for total federal revenues, total outlays, debt held by the public, and the surplus or deficit in the budget for the 10th, 20th, and 30th fiscal years after the last fiscal year of the budget resolution (long-term budgeting).

Requires inclusion in a budget resolution of specified long-term reconciliation directives.

Requires CBO to estimate whether each measure reported from committee (except those under the Committee on Appropriations) causes a net increase in direct spending in excess of $5 billion in any of the four ensuing 10-year periods. Makes it out of order in both chambers to consider any measure that causes such a net increase in deficits.

Requires CBO to prepare a specified long-term cost analysis and submit it to the requesting chairman or ranking member of the congressional budget committee or of the committee of jurisdiction for: (1) major legislation reported by any congressional committee, and (2) any bill or resolution requested by such chairman or ranking member.

Requires inclusion of specified long-term budgeting in the President's budget submission.

Requires the Government Accountability Office (GAO) to report, in the President's budget submission, on the federal government's financial condition, including the long-term unfunded obligations.

Amends the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to revise legislative procedures for congressional consideration of the President's proposed legislation in response to a Medicare funding warning (Medicare trigger).

Requires the appropriate chairman of the congressional budget committee to adjust the appropriate allocations, aggregates, and other levels to reflect the budget impact achieved by such introduced legislation for CBA purposes, the Gramm-Rudman-Hollings Act, the Rules of the House of Representatives, or the Standing Rules of the Senate.