This bill provides statutory authority for the Office of Management and Budget (OMB) requirement that federal agencies must submit at least one proposal for reducing direct spending before taking a discretionary administrative action that increases direct spending (i.e., administrative pay-as-you-go procedures). The proposed reduction must be comparable to the increase in direct spending attributable to the administrative action.

Further, an agency must submit to the OMB its legal basis for concluding that a proposed administrative action is nondiscretionary and, therefore, not subject to this requirement.

The OMB may waive these requirements if a waiver is necessary for the delivery of essential services, effective program delivery, or the public interest.