[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2599 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2599

To reform the Congressional Budget Process, establish binding spending 
 caps, introduce fiscal integrity, discipline and accountability, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 8, 1995

  Mr. Barton of Texas (for himself, Mr. Stenholm, Mr. Ewing, Mr. Pete 
 Geren of Texas, Mr. Ballenger, Mr. Hastert, Mr. Manzullo, Mr. Hall of 
  Texas, Mr. Sensenbrenner, Mr. Peterson of Minnesota, Mr. Hayes, Mr. 
Brewster, Mr. Minge, Mr. Condit, Mr. Forbes, Mr. Shadegg, Mr. Payne Of 
Virginia, Mrs. Lincoln, Mr. Orton, Mr. Barr of Georgia, Mr. Shays, Mr. 
Wamp, Mr. Sam Johnson of Texas, and Mr. Fox of Pennsylvania) introduced 
the following bill; which was referred to the Committee on the Budget, 
 and in addition to the Committees on Government Reform and Oversight, 
 and Rules, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To reform the Congressional Budget Process, establish binding spending 
 caps, introduce fiscal integrity, discipline and accountability, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Budget Enforcement 
Simplification Trust Act''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.
                     TITLE I--BUDGET PROCESS REFORM

Sec. 101. Definitions.
Sec. 102. Timetable.
Sec. 103. Biennial joint budget resolution.
Sec. 104. Committee allocations.
Sec. 105. Backstop budget resolution.
Sec. 106. Revisions to joint budget resolutions and spending caps.
Sec. 107. Budget enforcement provisions.
        Spending caps.
        Reporting excess spending.
        Presidential orders to eliminate excess spending.
        Enforcing discretionary spending limits.
        Enforcing direct spending limits.
        Exempt programs and activities.
        Special rules.
        The current law baseline.
        PAYGO.
         TITLE II--ITEM VETO AND ENHANCED RESCISSION AUTHORITY

                     chapter a--line-item veto act

                chapter b--enhanced rescission authority

                     TITLE III--GENERAL PROVISIONS

Sec. 301. Transition rules.
Sec. 302. Effective dates.
Sec. 303. Conforming amendments.
Sec. 304. Amendments to title 31, United States Code.
Sec. 305. Effects of certain judicial action.

                     TITLE I--BUDGET PROCESS REFORM

SEC. 101. DEFINITIONS.

    Section 3 of the Congressional Budget Act of 1974 is amended to 
read as follows:

``SEC. 3. IN GENERAL.

    ``For purposes of this Act--
            ``(1) The term `biennial budget years' means the two year 
        period encompassing a fiscal year beginning in a calendar year 
        that ends in an odd number and the subsequent fiscal year.
            ``(2) The term `budget biennium' means the two year period 
        consisting of the biennial budget years.
            ``(3) The term `eligible population' shall mean those 
        individuals to whom the United States is obligated to make a 
        payment under the provisions of a law creating entitlement 
        authority. Such term shall not include States, localities, 
        corporations or other non-living entities.
          ``(4) The terms `sequester' and `sequestration' refer to or 
        mean the cancellation of budgetary resources provided by 
        discretionary appropriations or direct spending law.
            ``(5) The term `breach' means, for any fiscal year--
                    ``(A) the amount (if any) by which new budget 
                authority or outlays for that year (within a category 
                of discretionary appropriations) is above that 
                category's discretionary spending cap for new budget 
                authority or outlays for that year, as the case may be; 
                or
                    ``(B) the amount (if any) by which outlays for that 
                year (within a category of direct spending) is above 
                that category's direct spending cap for that year.
            ``(6) The term `baseline' means the projection (described 
        in section 657 of this Act) of current-year levels of new 
        budget authority, outlays, receipts, and the surplus or deficit 
        into the budget year and the outyears.
            ``(7) The term `budgetary resources' means new budget 
        authority; unobligated balances; direct spending authority; and 
        obligation limitations.
            ``(8) The term `discretionary appropriations' means 
        budgetary resources (except to fund direct-spending programs) 
        provided in appropriation Acts. If an appropriations Act alters 
        the level of direct spending or offsetting collections, that 
        effect shall be treated as discretionary spending. 
        Discretionary appropriations shall be those so designated in 
        the joint statement of managers accompanying the conference 
        report on the Budget Enforcement Simplification Truth Act. 
        Classifications of new accounts or activities and changes in 
        classifications shall be made in consultation with the 
        Committees on Appropriations and the Budget of the House of 
        Representatives and the Senate.
            ``(9) The term `direct spending' means--
                    ``(A) budget authority provided by law other than 
                appropriations Acts, including entitlement authority; 
                and
                    ``(B) the food stamp program.
        If a law other than an appropriations Act alters the level of 
        discretionary appropriations or offsetting collections, that 
        effect shall be treated as direct spending.
            ``(10) The term `entitlement authority' means authority 
        (whether temporary or permanent) to make payments (including 
        loans and grants), the budget authority for which is not 
        provided for in advance by appropriations 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 persons or governments who meet the requirements 
        established by such law.
            ``(11) The term `current' means, with respect to OMB 
        estimates included with a budget submission under section 
        1105(a) of title 31, the estimates consistent with the economic 
        and technical assumptions underlying that budget.
            ``(12) The term `account' means an item for which 
        appropriations are made in any appropriations Act and, for 
        items not provided for in appropriations Acts, such term means 
        an item which is identified in the section `Federal Programs by 
        Agency and Account' as it appears in the `Analytical 
        Perspectives' to the President's fiscal year 1996 budget 
        proposal beginning at page 337.
            ``(13) The term `budget year' means the fiscal year of the 
        Government that starts on the next October 1.
            ``(14) The term `current year' means, with respect to a 
        budget year, the fiscal year that immediately precedes that 
        budget year.
            ``(15) The term `outyear' means, with respect to a budget 
        year, any of the fiscal years that follow the budget year.
            ``(16) The term `OMB' means the Director of the Office of 
        Management and Budget.
            ``(17) The term `CBO' means the Director of the 
        Congressional Budget Office.
            ``(18) The terms `budget outlays' and `outlays' mean, with 
        respect to any fiscal year, expenditures of funds under budget 
        authority during such year.
            ``(19) Budget authority and new budget authority:
                    ``(A) In general.--The term `budget authority' 
                means the authority provided by Federal law to incur 
                financial obligations, as follows--
                            ``(i) provisions of law that make funds 
                        available for obligation and expenditure (other 
                        than borrowing authority), including the 
                        authority to obligate and expend the proceeds 
                        of offsetting receipts and collections;
                            ``(ii) borrowing authority, which means 
                        authority granted to a Federal entity to borrow 
                        and obligate and expend the borrowed funds, 
                        including through the issuance of promissory 
                        notes or other monetary credits;
                            ``(iii) contract authority, which means the 
                        making of funds available for obligation but 
                        not for expenditure; and
                            ``(iv) offsetting receipts and collections 
                        as negative budget authority, and the reduction 
                        thereof as positive budget authority.
                    ``(B) Limitations on budget authority.--Any amount 
                that is precluded from obligation in a fiscal year by a 
                provision of law (such as a limitation or a benefit 
                formula) shall not be budget authority in that year.
                    ``(C) New budget authority.--The term `new budget 
                authority' means, with respect to a fiscal year--
                            ``(i) budget authority that first becomes 
                        available for obligation in that year, 
                        including budget authority that becomes 
                        available in that year as a result of a 
                        reappropriation; or
                            ``(ii) a change in any account in the 
                        availability of unobligated balances of budget 
                        authority carried over from a prior year, 
                        resulting from a provision of law first 
                        effective in that year;
                            ``(iii) and includes a change in the 
                        estimated level of new budget authority 
                        provided in indefinite amounts by existing law. 
                        The term includes the cost for direct loan and 
                        loan guarantee programs, as those terms are 
                        defined by title V.
            ``(20) The term `tax expenditures' means those revenue 
        losses attributable to provisions of the Federal tax laws which 
        allow a special exclusion, exemption, or deduction from gross 
        income or which provide a special credit, a preferential rate 
        of tax, or a deferral of tax liability; and the term `tax 
        expenditures budget' means an enumeration of such tax 
        expenditures.
            ``(21) The term `joint resolution on the budget' means--
                    ``(A) a joint resolution setting forth the 
                congressional budget for the United States Government 
                for a fiscal year as provided in section 301 of this 
                Act; and
                    ``(B) any other joint resolution revising the 
                congressional budget for the United States Government 
                for a fiscal year as described in section 304 of this 
                Act.
            ``(22) The term `appropriation Act' means an Act referred 
        to in section 105 of title 1 of the United States Code.
            ``(23) The term `deficit' means, with respect to a fiscal 
        year, the amount by which outlays exceed receipts during that 
        year.
            ``(24) The term `surplus' means, with respect to a fiscal 
        year, the amount by which receipts exceed outlays during that 
        year.
            ``(25) The term `government-sponsored enterprise' means a 
        corporate entity created by a law of the United States that--
                    ``(A)(i) has a Federal charter authorized by law;
                    ``(ii) is privately owned, as evidenced by capital 
                stock owned by private entities or individuals;
                    ``(iii) is under the direction of a board of 
                directors, a majority of which is elected by private 
                owners;
                    ``(iv) is a financial institution with power to--
                            ``(I) make loans or loan guarantees for 
                        limited purposes such as to provide credit for 
                        specific borrowers or one sector; and
                            ``(II) raise funds by borrowing (which does 
                        not carry the full faith and credit of the 
                        Federal Government) or to guarantee the debt of 
                        others in unlimited amounts; and
                    ``(B)(i) does not exercise powers that are reserved 
                to the Government as sovereign (such as the power to 
                tax or to regulate interstate commerce);
                    ``(ii) does not have the power to commit the 
                Government financially (but it may be a recipient of a 
                loan guarantee commitment made by the Government); and
                    ``(iii) has employees whose salaries and expenses 
                are paid by the enterprise and are not Federal 
                employees subject to title 5 of the United States Code.
            ``(26) The sale of an asset means the sale to the public of 
        any physical asset owned in whole or in part by the United 
        States.''.

SEC. 102. TIMETABLE.

    Section 300 of the Congressional Budget Act is amended to read as 
follows:
    ``Sec. 300. The timetable with respect to the congressional budget 
process for any budget biennium is as follows:

                          ``Odd-Numbered Years

``On or before:                     Action to be completed:
    January 15.....................
                                        CBO economic and budget update.
    First Monday in February.......
                                        President's budget: includes 
                                                sequestration update 
                                                based on new 
                                                assumptions.
    April 15.......................
                                        House and Senate pass joint 
                                                budget resolution.
    May 15.........................
                                        President signs joint budget 
                                                resolution.
    July 1.........................
                                        Cut-off for in-session 
                                                sequestration 
                                                (sequesters triggered 
                                                by legislative action).
    August 1.......................
                                        Baseline update.
    August 15......................
                                        Preview report.
    October 1......................
                                        Start of new fiscal year; start 
                                                of first year of 
                                                biennium.
    December 15....................
                                        OMB issues final (lookback) 
                                                report for prior year 
                                                and preview for current 
                                                year.
    December 15....................
                                        Presidential sequester order.
                         ``Even-Numbered Years

``On or before:                     Action to be completed:
    January 15.....................
                                        CBO economic and budget update.
    First Monday in February.......
                                        OMB baseline revision.
    July 1.........................
                                        Cut-off for in-session 
                                                sequester.
    August 1.......................
                                        Revised baseline.
    August 15......................
                                        Preview fiscal years ending and 
                                                beginning on October 1.
    October 1......................
                                        Fiscal year begins; starts 
                                                second year of 
                                                biennium.
    December 15....................
                                        OMB issues final (lookback) 
                                                report for prior year 
                                                and preview for current 
                                                fiscal year.''.

SEC. 103. BIENNIAL JOINT BUDGET RESOLUTION.

    Section 301 of the Congressional Budget and Impoundment Control Act 
of 1974 is amended to read as follows:

         ``biennial adoption of joint resolution on the budget

    Sec. 301. (a) Content of Joint Resolution on the Budget.--Beginning 
in calendar year 1997, on or before May 15 of each odd numbered year, 
the Congress shall complete action on a joint resolution on the budget 
for the fiscal year beginning on October 1 of such year and for the 
following fiscal year (the biennial budget years). The joint resolution 
shall also set forth appropriate levels for each of the two ensuing 
budget biennia. The joint resolution shall specify the following for 
each fiscal year--
            ``(1) total new budget authority and outlays;
            ``(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 appropriate committees;
            ``(3) the budget surplus or deficit;
            ``(4) new budget authority and budget outlays for each 
        major functional category, based on allocations of the total 
        levels set forth pursuant to paragraph (1);
            ``(5) the public debt;
            ``(6) amounts for spending caps for all budget authority, 
        outlays and entitlement authority (except for matters exempted 
        from the caps under section 606 of this Act), including--
                    ``(A) total discretionary spending, which may be 
                subdivided according to section 301(b)(3) of this Act; 
                and
                    ``(B) total direct spending, with separate caps 
                for--
                            ``(i) programs (as described in table 10 of 
                        the August 1995 Congressional Budget Office 
                        Report entitled ``The Economic and Budget 
                        Outlook: An Update'') with estimated outlays 
                        for any fiscal year that equal or exceed $20 
                        billion;
                            ``(ii) such other programs or groups of 
                        programs as may be provided in the joint 
                        resolution.
                            ``(iii) the remainder of direct spending 
                        programs.
            ``(7) an amount of budget authority and outlays for each 
        fiscal year equal to or greater than one percent of the 
        spending caps for total discretionary budget authority and 
        total discretionary outlays for such fiscal year (as set forth 
        pursuant to section 301(a)(6)(A) of this Act) that is withheld 
        from allocation pursuant to section 302(a) of this act to 
        provide a reserve fund for contingencies.
    ``(b) Additional Matters in Joint Resolution.--The joint resolution 
on the budget may--
            ``(1) include reconciliation directives described in 
        section 310;
            ``(2) require a procedure under which all or certain bills 
        or resolutions providing new budget authority or new 
        entitlement authority for the biennial budget years shall not 
        be enrolled until the Congress has completed action on any 
        reconciliation bill or reconciliation resolution or both 
        required by such joint resolution to be reported in accordance 
        with section 310(b);
            ``(3) require or modify a procedure establishing firewalls 
        between categories of spending or programs subject to specific 
        caps as provided in section 301(a)(6)(A) of this Act; 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 and the joint resolution.
    ``(c) Views and Estimates of Other Committees.--Within 6 weeks 
after the President submits a budget under section 1105(a) of title 31, 
United States Code, each committee of the House of Representatives 
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. 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.
    ``(d) Hearings and Report.--In developing the joint resolution on 
the budget referred to in subsection (a) for each budget biennium, the 
Committee on the Budget of each House shall hold hearings and shall 
receive testimony from Members of Congress and such appropriate 
representatives of Federal departments and agencies, the general 
public, and national organizations as the committee deems desirable. 
The report accompanying such joint 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 as set forth in 
        such joint resolution with those estimated or requested in the 
        budget submitted by the President;
            ``(3) with respect to each major functional category, an 
        estimate of budget outlays and an appropriate level of new 
        budget authority for all proposed programs and for all existing 
        programs (including renewals thereof), with the estimate and 
        level for existing programs being divided between permanent 
        authority 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 
        recommended 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 ten fiscal years beginning with such fiscal year, of 
        the estimated levels of total budget outlays and total new 
        budget authority, the estimated revenues to be received, and 
        the estimated 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 
        determined each of the matters set forth in the joint 
        resolution;
            ``(9) allocations described in section 302(a); and
            ``(10) an analysis, prepared after consultation with the 
        Director of the Congressional Budget Office, of the joint 
        resolution's impact on the international competitiveness of 
        United States business and the United States balance of 
        payments position and shall include the following projections, 
        based upon the best information available at the time, for the 
        fiscal years covered by the joint resolution--
                    ``(A) the amount of borrowing by the Government in 
                private credit markets;
                    ``(B) net domestic savings (defined as personal 
                savings, corporate savings, and the fiscal surplus of 
                State and local government);
                    ``(C) net private domestic investment;
                    ``(D) the merchandise trade and current accounts;
                    ``(E) the net increase or decrease in foreign 
                indebtedness (defined as net foreign investment); and
                    ``(F) the estimated direction and extent of the 
                influence of the Government's borrowing in private 
                credit markets on United States dollar interest rates 
                and on the real effective exchange rate of the United 
                States dollar.
    ``(e) Economic Assumptions.--
            ``(1) The joint explanatory statement accompanying a 
        conference report on a joint resolution on the budget shall set 
        forth the common economic assumptions upon which such joint 
        statement and conference report are based, or upon which any 
        amendment contained in the joint explanatory statement to be 
        proposed by the conferees in the case of technical 
        disagreement, is based.
            ``(2) Subject to periodic re-estimation based on changed 
        economic conditions or technical estimates, determinations 
        under titles III, IV and VI of the Congressional Budget Act of 
        1974 shall be based upon such common economic and technical 
        assumptions.''.

SEC. 104. COMMITTEE ALLOCATIONS.

    Section 302 of the Congressional Budget Act of 1974 is amended to 
read as follows:

                        ``committee allocations

    ``Sec. 302. ``(a) Allocation of Totals.--
            ``(1) For the House of Representatives, the joint 
        explanatory statement accompanying a conference report on a 
        joint resolution on the budget shall include an estimated 
        allocation, based on such joint resolution as recommended in 
        such conference report, of the appropriate levels of total 
        budget outlays, total budget authority, and total entitlement 
        authority among each committee of the House of Representatives 
        which has jurisdiction over laws, bills and resolutions 
        providing such new budget authority and such entitlement 
        authority. Pursuant to paragraph (3), the allocation shall 
        insure that amounts set aside for natural disasters shall be 
        available only for such purposes.
            ``(2) For the Senate, the joint explanatory statement 
        accompanying a conference report on a joint resolution on the 
        budget shall include an estimated allocation, based upon such 
        joint resolution as recommended in such conference report, of 
        the appropriate levels for each fiscal year of total budget 
        outlays, total budget authority and total entitlement authority 
        among each committee of the Senate which has jurisdiction over 
        bills and resolutions providing such budget authority. Pursuant 
        to paragraph (3), the allocation shall insure that amounts set 
        aside for natural disasters shall be available only for such 
        purposes.
            ``(3) Contingency reserve for natural disasters.--The joint 
        resolution on the budget shall specify the amount of new budget 
        authority and outlays within the discretionary spending cap 
        that shall be withheld from allocation to the committees and 
        reserved for natural disasters, and a procedure for releasing 
        such funds for allocation to the committee of jurisdiction. The 
        amount withheld shall be equal to one percent of the total 
        discretionary cap, unless additional amounts are specified.
                    ``(A) Such procedure shall insure that funds are 
                released for allocation only if--
                            ``(i) The President has made a request for 
                        such disaster funds;
                            ``(ii) The programs to be funded are 
                        included in the Presidential request;
                            ``(iii) The projected obligations for 
                        unforeseen emergency needs exceed the ten-year 
                        rolling average annual expenditure for existing 
                        programs included in the Presidential request 
                        for the applicable fiscal year or fiscal years.
                    ``(B) Notwithstanding any other provision of law, 
                such procedure shall also--
                            ``(i) Require States and localities to 
                        maintain effort and ensure that Federal 
                        assistance payments do not replace, subvent or 
                        otherwise have the effect of reducing regularly 
                        budgeted State and local expenditures for law 
                        enforcement, fire fighting, road construction 
                        and maintenance, building construction and 
                        maintenance and/or any other category of 
                        regular government expenditure. The purpose of 
                        this clause is to ensure that Federal disaster 
                        assistance payments are made only for 
                        incremental costs directly attributable to 
                        unforeseen events resulting from unforeseen 
                        disasters, and do not replace or reduce regular 
                        State and local expenditures for the same or 
                        similar purposes.
                            ``(ii) Prohibit the President from taking 
                        administrative action to waive any requirement 
                        for States and/or localities to make minimum 
                        matching payments as a condition of receiving 
                        Federal disaster assistance; and/or prohibit 
                        the President from taking administrative action 
                        to waive all or part of any repayment of 
                        Federal loans for the State and/or local 
                        matching share required as a condition of 
                        receiving Federal disaster assistance. This 
                        clause shall apply to all matching share 
                        requirement and loans to meet matching share 
                        requirements under the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act 
                        (42 U.S.C. 5121 et seq.) and/or any and all 
                        other Acts pursuant to which the President may 
                        declare a disaster or disasters and States and/
                        or localities otherwise qualify for Federal 
                        disaster assistance.
                            ``(iii) Require a two-thirds vote in each 
                        House of Congress, for each emergency, to 
                        reduce or waive the State matching requirement 
                        or to forgive all or part of loans for the 
                        State matching share as required under the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 5121 et 
                        seq.).
    ``(b) Reports by Committees.--As soon as practicable after a joint 
resolution on the budget is enacted--
            ``(1) the Committees on Appropriations of each House shall, 
        after consulting with the Committee on Appropriations of the 
        other House subdivide among its subcommittees the allocation of 
        budget outlays, and new budget authority allocated to it in the 
        joint budget resolution; and
            ``(2) every other committee of the House and Senate to 
        which an allocation was made in such joint budget resolution 
        shall, after consulting with the committee or committees of the 
        other house to which all or part of its allocation was made, 
        subdivide such allocation among its subcommittees or among 
        programs over which it has jurisdiction.
Each such committee shall promptly report to its House the subdivisions 
made by it pursuant to this subsection.
    ``(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; or
            ``(2) new spending authority as described in section 3(11) 
        of this Act 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, unless and until such committee makes the allocation 
of subdivisions required by subsection (b), in connection with the most 
recently enacted joint resolution on the budget for such fiscal year.
    ``(d) Subsequent Joint Resolutions.--In the case of a joint 
resolution on the budget referred to in section 304(a) of this Act, the 
subdivisions under subsection (b) shall be required only to the extent 
necessary to take into account revisions made in the most recently 
enacted joint resolution on the budget.
    ``(e) Alteration of Allocations.--At any time after a committee 
reports the subdivision required to be made under subsection (b), such 
committee may report to its House an alteration of such subdivision. 
Any alteration of such subdivision 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.--After enactment of a 
joint resolution on the budget for a fiscal year, it shall not be in 
order in the House of Representatives or the Senate to consider any 
bill, resolution, or amendment providing new budget authority for such 
fiscal year, or new entitlement authority effective during such fiscal 
year 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 allocation made pursuant to subsection (a) 
or subdivision made under subsection (b) of this section for each 
fiscal year of new discretionary budget authority or new entitlement 
authority to be exceeded.
    ``(g) Determinations by Budget Committees.--For purposes of this 
section, the levels of new budget authority, entitlement authority, and 
outlays 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 
the Senate, as the case may be.''.

SEC. 105. BACKSTOP BUDGET RESOLUTION.

    Section 303 of the Congressional Budget Act of 1974 is amended to 
read as follows:

                      ``backstop budget resolution

``SEC. 303. BACKSTOP BUDGET RESOLUTION.

``Following May 15 of any odd numbered year, if a joint resolution on 
the budget has not yet been enacted for the upcoming biennial budget 
years, then the amounts and caps established for those years in the 
most recently enacted joint budget resolution shall be binding as if 
they had been enacted pursuant to this section.''.

SEC. 106. REVISIONS TO JOINT BUDGET RESOLUTIONS AND SPENDING CAPS.

    Section 304 of the Congressional Budget Act is amended to read as 
follows:

       ``revisions to joint budget resolutions and spending caps

``SEC. 304. PERMISSIBLE REVISIONS TO JOINT RESOLUTIONS ON THE BUDGET 
              AND SPENDING CAPS.

    ``(a) Revisions to Joint Budget Resolutions.--At any time after the 
enactment of a joint resolution on the budget pursuant to section 301 
of this Act, Congress may consider a joint resolution on the budget 
which revises or reaffirms the joint resolution on the budget for the 
biennial budget years most recently agreed to.
    ``(b) Revisions to Spending Caps.--
            ``(1) Automatic adjustments to spending limits.--When the 
        President submits the budget under section 1105(a) of title 31, 
        United States Code, for any year, and when reports are 
        submitted pursuant to section 602 of this Act, OMB shall 
        calculate (in the order set forth below), and the budget and 
        reports shall include, adjustments to the spending limits (and 
        those limits as cumulatively adjusted) for the budget year and 
        each outyear, to reflect the following:
                    ``(A) Changes in concepts and definitions.--The 
                adjustments produced by changes in concepts and 
                definitions shall equal the baseline levels of new 
                budget authority and outlays using up-to-date concepts 
                and definitions minus those levels using the concepts 
                and definitions in effect before such changes. Such 
                changes in concepts and definitions may only be made in 
                consultation with the Committees on Appropriations, the 
                Budget, Government Reform and Oversight and 
                Governmental Affairs of the House of Representatives 
                and Senate.
                    ``(B) Changes in inflation.--
                            ``(i) There shall be no adjustment to 
                        discretionary spending caps for changes in 
                        inflation. For direct spending programs where 
                        adjustments for inflation are required by 
                        existing law, the direct spending caps shall be 
                        adjusted for inflation. The adjustments 
                        produced by changes in inflation shall equal 
                        the level of new budget authority and outlays 
                        in the most recently published current law 
                        baseline recalculated with baseline inflation 
                        factor for the biennium covered in reports 
                        submitted pursuant to section 602.
                            ``(ii) For the biennium, the inflation 
                        adjustment factors shall equal the ratio 
                        between the level of year-over-year inflation 
                        measured for the fiscal year most recently 
                        completed and the applicable estimated level 
                        for those years included in the Joint Statement 
                        of Managers pursuant to section 301(e).
                            ``(iii) Inflation shall be measured as 
                        follows: for indexed programs, inflation shall 
                        be measured by the changes in the index 
                        specified in law; for programs providing health 
                        care, inflation shall be measured by changes in 
                        the consumer price index for all urban 
                        consumers for medical care components (CPI-U 
                        medical care); and for all other programs, 
                        inflation shall be measured by changes in the 
                        consumer price index for all urban consumers 
                        (CPI-U).
                    ``(C) Changes in unemployment and interest rates.--
                For direct spending caps, OMB shall make adjustments in 
                new budget authority and outlays for changes in actual 
                unemployment and interest rates, in the most recent 
                period for which such data is available, relative to 
                the baseline contained in the Statement of Managers 
                accompanying the most recently enacted joint budget 
                resolution, pursuant to section 301(e) of this Act. The 
                baseline and the caps for direct spending programs 
                shall be adjusted to reflect those changes.
                    ``(D) Changes in eligible populations.--For direct 
                spending caps, OMB shall make adjustments in new budget 
                authority and outlays for changes in the number of 
                eligible beneficiaries (the eligible population), 
                compared to the number projected to be eligible in the 
                calculation of the baseline contained in the Statement 
                of Managers accompanying the most recently enacted 
                joint budget resolution, pursuant to section 301(e) of 
                this Act.
                    ``(E) Intra-budgetary payments from discretionary 
                accounts to mandatory accounts.
            ``(2) Permissible revisions to spending caps.--Spending 
        caps enacted pursuant to section 301(a)(6) of this Act may be 
        revised as follows:
                    ``(A) Permissible adjustments.--Except for 
                amendments offered pursuant to subsection (c), spending 
                caps enacted pursuant to section 301(a)(6) of this Act 
                may only be amended by recorded vote. It shall be a 
matter of highest privilege in the House of Representatives and the 
Senate for a Member of the House of Representatives or the Senate to 
insist on a recorded vote solely on the question of amending such 
spending caps.
    ``(c) Lock-Box Amendment.--Notwithstanding any other law or any 
rule of the House of Representatives or the Senate, it shall always be 
in order to offer an amendment to a bill providing discretionary budget 
authority or budget outlays that would--
            ``(1) only reduce such budget authority or budget outlays; 
        and
            ``(2) reduce the appropriate caps in the most recently 
        enacted joint budget resolution for such budget authority or 
        budget outlays by an amount less than or equal to the amount of 
        the reduction in the amendment.''.

SEC. 107. BUDGET ENFORCEMENT PROVISIONS.

    Title VI of the Congressional Budget Act of 1974 is amended to read 
as follows--

               ``TITLE VI--BUDGET ENFORCEMENT PROVISIONS

``SEC. 601. ENFORCING SPENDING CAPS.

    ``(a) General Statement on Spending Caps.--This title provides 
enforcement of the caps on categories of spending established in joint 
budget resolutions under section 301(a)(6) of this Act. The provisions 
of this title trigger sequestration of discretionary and direct 
spending that exceeds an applicable spending cap.
    ``(b) Overall Rules.--
            ``(1) Eliminating a breach.--Each non-exempt account within 
        a category shall be reduced by a dollar amount calculated by 
        multiplying the baseline level of sequestrable budgetary 
        resources in that account at that time by the uniform 
        percentage necessary to eliminate a breach within that 
        category. If, within a category, the discretionary spending 
        limits for both new budget authority and outlays are breached, 
        the uniform percentage shall be calculated by--
                    ``(A) first, calculating the uniform percentage 
                necessary to eliminate the breach in new budget 
                authority, and
                    ``(B) second, if any breach in outlays remains, 
                increasing the uniform percentage to a level sufficient 
                to eliminate that breach.
            ``(2) Programs, projects, or activities.--Except as 
        otherwise provided, the same percentage sequestration shall 
        apply to all programs, projects, and activities within a budget 
        account (with programs, projects, and activities as delineated 
        in the appropriation Act or accompanying report for the 
        relevant fiscal year covering that account, or for accounts not 
        included in appropriation Acts, as identified in the section 
        `Federal Programs by Agency and Account' as it appears in the 
        Analytical Perspectives to the President's fiscal year 1996 
        budget proposal beginning at page 337.
            ``(3) Administrative expenses associated with certain 
        programs.--Notwithstanding any exemption, general rule or 
        special rule in this Act, administrative expenses associated 
        with all programs shall be fully subject to sequestration under 
        this section.
            ``(4) Indefinite authority.--Except as otherwise provided, 
        sequestration in accounts for which obligations are indefinite 
        shall be taken in a manner to ensure that obligations in the 
        fiscal year of a sequestration and succeeding fiscal years are 
        reduced, from the level that would actually have occurred, by 
        the applicable sequestration percentage or percentages.
            ``(5) Cancellation of budgetary resources.--Budgetary 
        resources sequestered from any account other than an 
        entitlement trust, special, or revolving fund account shall 
        revert to the Treasury and be permanently canceled or repealed.
            ``(6) Implementing regulations.--Administrative regulations 
        or similar actions implementing the sequestration of a program 
        or activity shall be made within 30 days of the effective date 
        of the sequestration of that program or activity.
            ``(7) Part year appropriations.--If, within 15 days after 
        Congress adjourns to end a session, there is in effect an Act 
        making or continuing appropriations for part of a fiscal year 
        for any budget account, then the dollar sequestration 
        calculated for that account under paragraph (1) shall be 
        subtracted from--
                    ``(A) the annualized amount otherwise available by 
                law in that account under that or a subsequent part-
                year appropriation; and
                    ``(B) when a full-year appropriation for the 
                account is enacted, from the amount otherwise provided 
                by the full-year appropriation.
            ``(8) Military personnel.--If the President uses the 
        authority to exempt any military personnel from sequestration 
        under section 606(j) each account within subfunctional category 
        051 (other than those military personnel accounts for which the 
        authority provided under section 606(j) has been exercised) 
        shall be further reduced by a dollar amount calculated by 
        multiplying the enacted levels of non-exempt budgetary 
        resources in that account at that time by the uniform 
        percentage necessary to offset the total dollar amount by which 
        outlays are not reduced in military personnel accounts by 
        reason of the use of such authority.

``SEC. 602. REPORTING EXCESS SPENDING.

    ``(a) Analysis of Actual Spending Levels.--Following the end of any 
fiscal year the Director of the Office of Management and Budget shall 
compile a statement of actual spending for that year. The statement 
shall identify such spending by categories contained in section 
301(a)(6) of this Act.
    ``(b) Estimate of Necessary Spending Reduction.--Based on the 
statement provided under subsection (a), the Director of the Office of 
Management and Budget shall issue a report to the President and the 
Congress on December 15 of any year in which such statement identifies 
actual spending in excess of amounts allocated under the most recently 
enacted joint resolution on the budget by more than one percent of the 
budget cap established for total discretionary spending and total 
direct spending over the course of a budget biennium. Such report shall 
identify:
            ``(1) All instances in which actual spending has exceeded 
        the appropriate budget cap or caps established pursuant to 
        Section 301(a)(6) of this Act;
            ``(2) The amount by which actual spending has exceeded the 
        appropriate budget cap or caps as identified under the 
        preceding paragraph;
            ``(3) For the current fiscal year, the difference between 
        the amount of spending available under the budget caps 
        identified under paragraph (1) and estimated actual spending 
        for the categories associated with such caps;
            ``(4) The amounts by which spending must be reduced in the 
        current fiscal year so that total actual and estimated spending 
        for all cap categories identified under paragraph (1) for the 
        current and immediately preceding fiscal years shall not exceed 
        the total amounts available for such fiscal years in the most 
        recently enacted joint resolution on the budget.
            ``(5) If the excess spending, in whole or in part, has 
        resulted solely from changes in inflation, interest rates, 
        unemployment or eligible population, the amounts by which such 
        spending has resulted solely from such factors.
    ``(c) Timetable.--The timetable with respect to reports and orders 
required under this title is as follows:

                           Odd-Numbered Years

``Date                              Action to be Completed
    January 15.....................
                                        CBO economic and budget update.
    First Monday in February.......
                                        President's budget (Includes 
                                                sequestration update 
                                                based on new 
                                                assumptions).
    August 1.......................
                                        Baseline update.
    August 15......................
                                        Preview report.
    December 15....................
                                        OMB issues final (lookback) 
                                                report for prior year 
                                                and preview for current 
                                                year.
    December 15....................
                                        Presidential sequester order.
                          Even-Numbered Years

``Date                              Action to be Completed
    January 15.....................
                                        CBO economic and budget update
    First Monday in February.......
                                        OMB baseline revision.
    August 1.......................
                                        Revised baseline.
    August 15......................
                                        Preview fiscal years ending and 
                                                beginning on October 1.
    December 15....................
                                        OMB issues final (lookback) 
                                                report for prior year 
                                                and preview for current 
                                                year.

``SEC. 603. PRESIDENTIAL ORDERS TO ELIMINATE EXCESS SPENDING.

    ``(a) In General.--Following the submission of any report made by 
the Director of the Office of Management and Budget under section 602 
of this Act, the President shall issue an order eliminating all excess 
actual and estimated spending.
    ``(b) Timing of Order.--The order required under this section shall 
be issued on December 15.

``SEC. 604. ENFORCING DISCRETIONARY SPENDING LIMITS.

    ``(a) Discretionary Spending.--All discretionary appropriations 
shall be subject to budget authority and outlay caps for each fiscal 
year. Consistent with the total cap or caps, such cap may be subdivided 
according to the procedures established pursuant to section 301(b)(3) 
of this Act.
    ``(b) General Rules.--
            ``(1) Lookback adjustment for discretionary spending.--For 
        fiscal years where actual spending exceeded spending permitted 
        under the discretionary spending budget authority or outlay 
        caps as established under section 301(a)(6), the sequester 
        shall eliminate the entire overage or overages and:
                    ``(A) The budget authority cap or caps for such 
                discretionary spending for the current fiscal year 
                shall be revised downward by an amount sufficient to 
                eliminate the overage or overages, and the outlay cap 
                or caps for such discretionary spending for the current 
                and subsequent (if necessary) fiscal year or years 
                shall be adjusted downward by an amount sufficient to 
                eliminate the overage.
                    ``(B) Where no firewalls have been established, the 
                entire overage shall be sequestered from spending under 
                the aggregate cap and the appropriate cap or caps shall 
                be adjusted accordingly.
                    ``(C) Where discretionary spending firewalls have 
                been established, and if spending is projected to 
                exceed any discretionary spending cap or caps, all 
                excess spending in a particular firewall category shall 
                be sequestered from that category and the cap or caps 
                for that category or categories shall be adjusted 
                accordingly.
            ``(2) Prospective adjustment for discretionary spending.--
        For fiscal years where actual spending is projected to exceed 
        spending permitted under a discretionary spending cap or caps, 
        excess spending shall be sequestered following the procedures 
        set forth in subparagraphs (1) (C) and (D).
            ``(3) Within-session sequesters.--If a bill or resolution 
        providing discretionary appropriations for a fiscal year in 
        progress is enacted before July 1 of that fiscal year that 
        causes a breach within a discretionary spending cap or caps for 
        that year, 15 days later there shall be a sequestration to 
        eliminate that breach within that cap or caps following the 
        procedures set forth in subparagraphs (1) (C) and (D).
    ``(c) Special Rules for Discretionary Spending.--
            ``(1) Contingent fees.--In any account for which fees 
        charged to the public are legally determined by the level of 
        appropriations, fees shall be charged on the basis of the pre-
        sequestration level of appropriations.
            ``(2) Biennial appropriations.--With regard to new budget 
        authority which is provided in an appropriation Act for two 
        more years, the following special rules shall apply--
                    ``(A) Sequestration following the end of a biennial 
                budget period shall eliminate 100 percent of any 
                overage for the biennium.
                    ``(B) Sequestration following the end of the first 
                year of a biennial budget period shall eliminate the 
                lesser of--
                            ``(i) the actual overage in the first year 
                        of the biennium, or
                            ``(ii) 50 percent of the total overage 
                        projected for the biennium.

``SEC. 605. ENFORCING DIRECT SPENDING LIMITS.

    ``(a) In General.--All direct spending (except matters exempted 
from the caps under section 606 of this Act) shall be subject to caps 
on total outlays for each fiscal year. Consistent with the cap on total 
outlays, separate caps shall be established for--
            ``(1) any program (as named in Table 10 of the August 1995 
        Congressional Budget Office Report entitled ``The Economic and 
        Budget Outlook: An Update'') with outlays equal to or in excess 
        of $20 billion in any fiscal year;
            ``(2) such other program or group of programs as may be 
        identified in the joint budget resolution; and
            ``(3) the remainder of direct spending programs.
    ``(b) Direct Spending.--For all direct spending programs (except 
matters exempted from the caps under section 606 and programs subject 
to the special rules set forth under section 607), notwithstanding any 
other provision of law, any sequestration required under this Act shall 
reduce benefit levels by an amount sufficient to eliminate all excess 
spending identified in the report issued pursuant to section 602, 
except for those amounts identified under section 602(b)(5), while 
maintaining the same uniform percentage reduction in the monetary value 
of benefits subject to reduction under this subsection.
    ``(c) General Rules for Direct Spending.--For programs subject to 
direct spending caps:
            ``(1) Sequestration is triggered if total direct spending 
        subject to the caps exceeds or is projected to exceed the 
        aggregate cap for direct spending for the biennium.
            ``(2) Sequestration shall reduce spending under each 
        separate direct spending cap in proportion to the amounts each 
        category of direct spending contributes or contributed to the 
        overage.
            ``(3) Uniform percentages.--In calculating the uniform 
        percentage applicable to the sequestration of all direct 
        spending programs or activities, or the uniform percentage 
        applicable to the sequestration of nonexempt direct spending 
        programs or activities, the sequestrable base for direct 
        spending programs and activities is the total level of outlays 
        for the biennium for those programs or activities in the 
        current law baseline.
            ``(4) Sequestration following the end of a biennial budget 
        period shall eliminate 100 percent of any overage for the 
        biennium.
            ``(5) Sequestration following the end of the first year of 
        a biennial budget period shall eliminate the lesser of--
                    ``(A) the actual overage in the first year of the 
                biennium, or
                    ``(B) 50 percent of the total overage projected for 
                the biennium.
            ``(6) Permanent sequestration of direct spending.--
        Obligations in sequestered direct spending accounts shall be 
        reduced in the fiscal year in which a sequestration occurs and 
        in all succeeding fiscal years. Notwithstanding any other 
        provision of this section, after the first direct spending 
        sequestration, any later sequestration shall reduce direct 
        spending by an amount in addition to, rather than in lieu of, 
        the reduction in direct spending in place under the existing 
        sequestration or sequestrations.
            ``(7) For any direct spending program in which:
                    ``(A) Outlays pay for entitlement benefits.
                    ``(B) A budget-year sequestration takes effect 
                after the 1st day of the budget year.
                    ``(C) That delay reduces the amount of entitlement 
                authority that is subject to sequestration in the 
                budget, the uniform percentage otherwise applicable to 
                the sequestration of that program in the budget year 
                shall be increased as necessary to achieve the same 
                budget-year outlay reduction in that program as would 
                have been achieved had there been no delay.
                    ``(D) If the uniform percentage otherwise 
                applicable to the budget-year sequestration of a 
                program or activity is increased due to the delay, then 
                it shall revert to the uniform percentage calculated 
                under paragraph (3) when the budget year is completed.
            ``(8) Indexed benefit payments.--If, under any entitlement 
        program--
                    ``(A) benefit payments are made to persons or 
                governments more frequently than once a year, and
                    ``(B) the amount of entitlement authority is 
                periodically adjusted under existing law to reflect 
                changes in a price index (commonly called `cost of 
                living adjustments'),
        sequestration shall first be applied to the cost of living 
        adjustment before reductions are made to the base benefit. For 
        the first fiscal year to which a sequestration order applies, 
        the benefit payment reductions in such programs accomplished by 
        the order shall take effect starting with the payment made at 
        the beginning of January following a final sequester order. For 
        the purposes of this subsection, Veterans Compensation shall be 
        considered a program that meets the conditions of the preceding 
        sentence.
            ``(9) Loan programs.--For all loan programs subject to 
        direct spending caps made on or after the date of a 
        sequestration, the fees paid by borrowers shall be increased by 
        a uniform percentage sufficient to produce the dollar savings 
        in such loan programs for the fiscal year of the sequestration 
        required by this section. All subsequent fees shall be 
        increased by the same percentage, and all proceeds from such 
        fees shall be paid into the general fund of the Treasury, in 
        any year for which a sequester affecting such programs is in 
        effect, notwithstanding any other provision of law).
            ``(10) Insurance programs.--Any sequestration in a Federal 
        program that sells insurance contracts to the public (including 
        the Federal Crop Insurance Fund, the National Insurance 
        Development Fund, the National Flood Insurance Fund, insurance 
        activities of the Overseas Private Insurance Corporation, and 
        Veterans' life insurance programs) shall be accomplished by 
        increasing premiums on contracts entered into after the date a 
        sequestration order takes effect by the uniform sequestration 
        percentage. Proceeds from the premium increase shall be paid 
        from the insurance fund or account to the general fund of the 
        Treasury in any year for which a sequester affecting such 
        programs are in effect.
            ``(11) State grant formulas.--For all stage grant programs 
        subject to direct spending caps the total amount of funds 
        available for all states shall be reduced by the amount 
        required to be sequestered.
    ``(d) Within Session Sequester.--If a bill or resolution providing 
direct spending for a fiscal year in progress is enacted before July 1 
of that fiscal year that causes a breach within a direct spending cap 
or caps for that year, 15 days later there shall be a sequestration to 
eliminate that breach within that cap or caps following the procedures 
set forth in subsection (a).

``SEC. 606. EXEMPT PROGRAMS AND ACTIVITIES.

    ``The following budget accounts, activities within accounts, or 
income shall be exempt from sequestration--
            ``(a) net interest;
            ``(b) all payments to trust funds from excise taxes or 
        other receipts or collections properly creditable to those 
        trust funds;
            ``(c) offsetting receipts and collections;
            ``(d) all payments from one Federal direct spending budget 
        account to another Federal budget account; all 
        intragovernmental funds including those from which funding is 
        derived primarily from other Government accounts;
            ``(e) expenses to the extent they result from private 
        donations, bequests, or voluntary contributions to the 
        Government;
            ``(f) nonbudgetary activities, including but not limited 
        to--
                    ``(1) credit liquidating and financing accounts;
                    ``(2) the Pension Benefit Guarantee Corporation 
                Trust Funds;
                    ``(3) the Thrift Savings Fund;
                    ``(4) the Federal Reserve System; and
                    ``(5) appropriations for the District of Columbia 
                to the extent they are appropriations of locally raised 
                funds;
            ``(g) payments resulting from Government insurance, 
        Government guarantees, or any other form of contingent 
        liability, to the extent those payments result from contractual 
        or other legally binding commitments of the Government at the 
        time of any sequestration;
            ``(h) the following accounts, which largely fulfill 
        requirements of the Constitution or otherwise make payments to 
        which the Government is committed--
                    ``(1) Bureau of Indian Affairs, miscellaneous trust 
                funds, tribal trust funds (14-9973-0-7-999);
                    ``(2) Claims, defense;
                    ``(3) Claims, judgments, and relief act (20-1895-0-
                1-806);
                    ``(4) Compact of Free Association, economic 
                assistance pursuant to Public Law 99-658 (14-0415-0-1-
                806);
                    ``(5) Compensation of the President (11-0001-0-1-
                802);
                    ``(6) Customs Service, miscellaneous permanent 
                appropriations (20-9992-0-2-852);
                    ``(7) Eastern Indian land claims settlement fund 
                (14-2202-0-1-806);
                    ``(8) Farm Credit System Financial Assistance 
                Corporation, interest payments (20-1850-0-1-351);
                    ``(9) Internal Revenue collections of Puerto Rico 
                (20-5737-0-2-852);
                    ``(10) Payments of Vietnam and USS Pueblo prisoner-
                of-war claims (15-0104-0-1-153);
                    ``(11) Payments to copyright owners (03-5175-0-2-
                376);
                    ``(12) Salaries of Article III judges (not 
                including cost-of-living adjustments);
                    ``(13) Soldier's and Airmen's Home, payment of 
                claims (84-8930-0-7-705); and
                    ``(14) Washington Metropolitan Area Transit 
                Authority, interest payments (46-0300-0-1-401).
            ``(i) the following noncredit special, revolving, or trust-
        revolving funds--
                    ``(1) Exchange Stabilization Fund (20-4444-0-3-
                155); and
                    ``(2) Foreign Military Sales trust fund (11-82232-
                0-7-155).
    ``(j) Optional Exemption of Military Personnel.--
            ``(1) The President may, with respect to any military 
        personnel account, exempt that account from sequestration or 
        provide for a lower uniform percentage reduction that would 
        otherwise apply.
            ``(2) The President may not use the authority provided by 
        paragraph (1) unless he notifies the Congress of the manner in 
        which such authority will be exercised on or before the initial 
        snapshot date for the budget year.

``SEC. 607. SPECIAL RULES.

    ``(a) Child Support Enforcement Program.--Any sequestration order 
shall accomplish the full amount of any required reduction in payments 
under sections 455 and 458 of the Social Security Act by reducing the 
Federal matching rate for State administrative costs under the 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.
    ``(b) Commodity Credit Corporation.--
    ``(1) Effective date.--For the Commodity Credit Corporation, the 
date on which a sequestration order takes effect in a fiscal year shall 
vary for each crop of a commodity. In general, the sequestration order 
shall take effect when issued, but for each crop of a commodity for 
which 1-year contracts are issued as an entitlement, the sequestration 
order shall take effect with the start of the sign-up period for that 
crop that begins after the sequestration order is issued. Payments for 
each contract in such a crop shall be reduced under the same terms and 
conditions.
            ``(2) Dairy program.--
                    ``(A) As the sole means of achieving any reduction 
                in outlays under the milk price-support program, the 
                Secretary of Agriculture shall provide for a reduction 
                to be made in the price received by producers for all 
                milk produced in the United States and marketed by 
                producers for commercial use.
                    ``(B) That price reduction (measured in cents per 
                hundred-weight of milk marketed) shall occur under 
                subparagraph (A) of section 201(d)(2) of the 
                Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), 
                shall begin on the day any sequestration order is 
                issued, and shall not exceed the aggregate amount of 
                the reduction in outlays under the milk price-support 
                program, that otherwise would have been achieved by 
                reducing payments made for the purchase of milk or the 
                products of milk under this subsection during that 
                fiscal year.
            ``(3) Effect of delay.--For purposes of subsection (b)(1), 
        the sequestrable base for the Commodity Credit Corporation is 
        the budget-year level of gross outlays resulting from new 
        budget authority that is subject to reduction under paragraphs 
        (1) and (2), and subsection (b)(2) shall not apply.
            ``(4) Certain authority not to be limited.--Nothing in this 
        Act shall restrict the Corporation in the discharge of its 
        authority and responsibility as a corporation to buy and sell 
        commodities in world trade, or limit or reduce in any way any 
        appropriation that provides the Corporation with funds to cover 
        its net realized losses.
    ``(c) Regular and Extended Unemployment Compensation.--(1) A State 
may reduce each weekly benefit payment made under the regular and 
extended unemployment benefit programs for any week of unemployment 
occurring during any period with respect to which payments are reduced 
under any sequestration order by a percentage not to exceed the 
percentage by which the Federal payment to the State is to be reduced 
for such week as a result of such order.
    ``(2) A reduction by a State in accordance with paragraph (1) shall 
not be considered as a failure to fulfill the requirements of section 
3304(a)(11) of the Internal Revenue Code of 1986.
    ``(d) Federal Employees Health Benefits Fund.--For the Federal 
Employees Health Benefits Fund, a sequestration order shall take effect 
with the next open season. The sequestration shall be accomplished by 
annual payments from that Fund to the General Fund of the Treasury. 
Those annual payments shall be financed solely by charging higher 
premiums. The sequestrable base for the Fund is the budget-year level 
of gross outlays resulting from claims paid after the sequestration 
order takes effect.
    ``(e) Federal Housing Finance Board.--Any sequestration of the 
Federal Housing Finance Board shall be accomplished by annual payments 
(by the end of each fiscal year) from that Board to the general fund of 
the Treasury, in amounts equal to the uniform sequestration percentage 
for that year times the gross obligations of the Board in that year.
    ``(f) Federal Pay.--
            ``(1) In general.--New budget authority to pay Federal 
        personnel from direct spending accounts shall be reduced by the 
        uniform percentage calculated under section 652(a)(3), as 
        applicable, but no sequestration order may reduce or have the 
        effect of reducing the rate of pay to which any individual is 
        entitled under any statutory pay system (as increased by any 
        amount payable under section 5304 of title 5, United States 
        Code, or section 302 of the Federal Employees Pay Comparability 
        Act of 1990) 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 5303 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 5302(1) 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
                            ``(iii) cadet pay and midshipman pay under 
                        section 203(c) of such title.
                    ``(C) The term `uniformed services' shall have the 
                meaning given that term in section 101(3) of title 37, 
                United States Code.
    ``(g) Medicare.--
            ``(1) Timing of application of reductions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if a reduction is made in payment 
                amounts pursuant to a sequestration order, the 
                reduction shall be applied to payment for services 
                furnished after the effective date of the order. For 
                purposes of the previous 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 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 in payment amounts pursuant to a sequestration 
                order, the reduction shall be applied to payment for 
                costs for such services incurred at any time during 
                each cost reporting period of the provider any part of 
                which occurs after the effective date 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 after the effective date of the order.
            ``(2) No increase in beneficiary charges in assignment-
        related cases.--If a reduction in payment amounts is made 
        pursuant to a sequestration order 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 accordance with section 1842(b)(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 payment amount made pursuant to 
        a sequestration order, as payment in full.
            ``(3) Part b premiums.--In computing the amount and method 
        of sequestration from Part B of title XVIII of the Social 
        Security Act--
                    ``(A) the amount of the sequestration shall be 
                calculated by multiplying the total amount by which 
                Medicare spending exceeds the appropriate spending cap 
                by a percentage that reflects the ratio of total 
                spending under Part B to total Medicare spending; and
                    ``(B) sequestration in the Part B program shall be 
                accomplished by increasing premiums to beneficiaries.
            ``(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.
    ``(h) Postal Service Fund.--Any sequestration of the Postal Service 
Fund shall be accomplished by annual payments from that Fund to the 
General Fund of the Treasury, and the Postmaster General of the United 
States shall have the duty to make those payments during the fiscal 
year to which the sequestration order applies and each succeeding 
fiscal year. The amount of each annual payment shall be--
            ``(1) the uniform sequestration percentage, times
            ``(2) the estimated gross obligations of the Postal Service 
        Fund in that year other than those obligations financed with an 
        appropriation for revenue foregone for that year.
Any such payment for a fiscal year shall be made as soon as possible 
during the fiscal year, except that it may be made in installments 
within that year if the payment schedule is approved by the Secretary 
of the Treasury. Within 30 days after the sequestration order is 
issued, the Postmaster General shall submit to the Postal Rate 
Commission a plan for financing the annual payment for that fiscal year 
and publish that plan in the Federal Register. The plan may assume 
efficiencies in the operation of the Postal Service, reductions in 
capital expenditures, increases in the prices of services, or any 
combination, but may not assume a lower Fund surplus or higher Fund 
deficit and must follow the requirements of existing law governing the 
Postal Service in all other respects. Within 30 days of the receipt of 
that plan, the Postal Rate Commission shall approve the plan or modify 
it in the manner that modifications are allowed under current law. If 
the Postal Rate Commission does not respond to the plan within 30 days, 
the plan submitted by the Postmaster General shall go into effect. Any 
plan may be later revised by the submission of a new plan to the Postal 
Rate Commission, which may approve or modify it.
    ``(i) Power Marketing Administrations and TVA--Any sequestration of 
the Department of Energy power marketing administration funds or the 
Tennessee Valley Authority fund shall be accomplished by annual 
payments from those funds to the General Fund of the Treasury, and the 
administrators of those funds shall have the duty to make those 
payments during the fiscal year to which the sequestration order 
applies and each succeeding fiscal year. The amount of each annual 
payment by a fund shall be--
            ``(1) the direct spending uniform sequestration percentage, 
        times
            ``(2) the estimated gross obligations of the fund in that 
        year other than those obligations financed from discretionary 
        appropriations for that year.
Any such payment for a fiscal year shall be made as soon as possible 
during the fiscal year, except that it may be made in installments 
within that year if the payment schedule is approved by the Secretary 
of the Treasury. Annual payments by a fund may be financed by 
reductions in costs required to produce the presequester amount of 
power (but those reductions shall not include reductions in the amount 
of power supplied by the fund), by reductions in capital expenditures, 
by increases in rates, or by any combination, but may not be financed 
by a lower fund surplus, a higher fund deficit, additional borrowing, 
delay in repayment of principal on outstanding debt and must follow the 
requirements of existing law governing the fund in all other respects. 
The administrator of a fund or the TVA Board is authorized to take the 
actions specified above in order to make the annual payments to the 
Treasury.
    ``(j) Businesslike Transactions.--For programs which provide a 
businesslike service in exchange for a fee, sequestration shall be 
accomplished through a uniform increase in fees (sufficient to produce 
the dollar savings in such programs for the fiscal year of the 
sequestration required by section 650(a)(2), all subsequent fees shall 
be increased by the same percentage, and all proceeds from such fees 
shall be paid into the general fund of the Treasury, in any year for 
which a sequester affecting such programs are in effect, 
notwithstanding any other provision of law).

``SEC. 608. THE CURRENT LAW BASELINE.

    ``(a) Determination of the Budget Baseline.--The Directors of the 
Congressional Budget Office and the Office of Management and Budget 
shall submit to the President and the Congress reports setting forth 
the budget baselines for the budget year and at least the subsequent 
nine fiscal years. The CBO report shall be submitted on or before 
January 15. In odd numbered years, the OMB report shall accompany the 
President's budget. In even numbered years, the OMB report shall be 
submitted on or before the first Monday in February:
            ``(1) The budget baseline shall be based on the common 
        economic assumptions set forth in the Statement of Managers 
        accompanying the most recently enacted joint resolution on the 
        budget, pursuant to section 301(e) of this Act, adjusted to 
        reflect revisions pursuant to (b) below.
            ``(2) The budget baseline shall consist of a project of 
        current-year levels of budget authority, outlays, revenues and 
        the surplus or deficit into the budget year and the relevant 
        outyears based upon current enacted laws as of the date of the 
        projection.
    ``(b) Revisions to the Baseline.--The baseline shall be adjusted 
for up-to-date economic and technical assumptions when the CBO submits 
its Economic and Budget Update and OMB submits its Budget Update, and 
by August 1 each year, when CBO and OMB submit their Midyear Reviews.
            ``(1) For Discretionary spending items, the baseline shall 
        be the spending caps in effect pursuant to section 301(a)(6)(A) 
        of this Act. For years in which there are no caps, the baseline 
        for discretionary spending shall be the same as in the last 
        year for which caps were included in the most recently enacted 
        joint resolution on the budget.
            ``(2) For all other expenditures, and for revenues, the 
        baseline shall be adjusted by comparing unemployment, 
        inflation, interest rates, growth and other economic 
        indicators--changes in eligible population and other technical 
        estimates for the most recent period for which actual data are 
        available, compared to the assumptions contained in the 
        statement of managers pursuant to section 301(e) of this Act.
    ``(c) The budget baseline shall provide the basis for enforcement 
procedures pursuant to section 311 and Title IV of this Act.
    ``(d) Modification of Budget Baseline Rules.--Pursuant to Section 
301 of this Act, Biennial Joint Resolutions on the Budget may expound 
and revise rules determining the calculation of budget baselines.

``SEC. 609. PAY-AS-YOU-GO.

    ``(a) Revenue Legislation Must Be Deficit Neutral.--It shall not be 
in order in the House of Representatives or the Senate to consider a 
bill, resolution or amendment reducing receipts unless such reduction 
is fully offset by an equal or greater increase in receipts or 
reduction in direct spending for each and all fiscal years affected by 
the reduction in receipts.
    ``(b) Downward Adjustment of Spending Caps.--If any reduction in 
receipts is offset in whole or in part by a reduction in direct 
spending pursuant to the preceeding subsection, then the appropriate 
direct spending cap or caps shall be adjusted downward by an amount 
equal to the offset or offsets.
    ``(c) Expiration of Tax Cuts.--If any provision of law that offsets 
a reduction in receipts pursuant to subsection (a) expires, then the 
reduction in receipts shall expire on the same date.
    ``(d) Supermajority Required To Waive.--Notwithstanding any rule of 
the House of Representatives or the Senate, the provisions of this 
section shall not be waived except with the concurrence of two-thirds 
of the whole number of the House of Representatives or the Senate, as 
the case may be, shall provide for such waiver by roll-call vote.''.

                                TITLE II

                               CHAPTER A

SEC. 201. SHORT TITLE.

    This Chapter may be cited as the ``Line Item Veto Act''.

SEC. 202. LINE ITEM VETO AUTHORITY.--

    (a) In General.--Notwithstanding the provisions of part B of title 
X of the Congressional Budget and Impoundment Control Act of 1974, and 
subject to the provisions of this section, the President may rescind 
all or part of any dollar amount on any discretionary budget authority 
specified in an appropriation Act or conference report or joint 
explanatory statement accompanying a conference report on the Act, or 
veto any targeted tax benefit which is subject to the terms of this Act 
if the President--
            (1) determines that--
                    (A) such rescission or veto would help reduce the 
                Federal budget deficit;
                    (B) such rescission or veto will not impair any 
                essential Government functions; and
                    (C) such rescission or veto will not harm the 
                national interest; and
            (2) notifies the Congress of such rescission or veto by a 
        special message not later than ten calendar days (not including 
        Sundays) after the date of enactment of an appropriation Act 
        providing such budget authority or a revenue or reconciliation 
        Act containing a targeted tax benefit.
    (b) Deficit Reduction.--In each special message, the President may 
also propose to reduce the appropriate discretionary spending caps set 
forth pursuant to section 301 of the Congressional Budget Act of 1974 
by an amount that does not exceed the total amount of discretionary 
budget authority rescinded by that message.
    (c) Separate Messages.--The President shall submit a separate 
special message for each appropriation Act and for each revenue or 
reconciliation Act under this section.
    (d) Limitation.--No special message submitted by the President 
under this section may change any prohibition or limitation of 
discretionary budget authority set forth in any appropriation Act.
    (e) Special Rule for Fiscal Year 1996 Appropriation Measures.--
Notwithstanding subsection (a)(2), in the case of any unobligated 
discretionary budget authority provided by any appropriation Act for 
fiscal year 1996, the President may rescind all or part of that 
discretionary budget authority under the terms of this Act if the 
President notifies the Congress of such rescission by a special message 
not later than ten calendar days (not including Sundays) after the date 
of enactment of this Act.

SEC. 203. LINE ITEM VETO EFFECTIVE UNLESS DISAPPROVED.

    (a)(1) Any amount of budget authority rescinded under this Act as 
set forth in a special message by the President shall be deemed 
canceled unless, during the period described in subsection (b), a 
rescission/receipts disapproval bill making available all of the amount 
rescinded is enacted into law.
    (2) Any provision of law vetoed under this Act as set forth in a 
special message by the President shall be deemed repealed unless, 
during the period described in subsection (b), a rescission/receipts 
disapproval bill restoring that provision is enacted into law.
    (b) The period referred to in subsection (a) is--
            (1) a congressional review period of twenty calendar days 
        of session, beginning on the first calendar day of session 
        after the date of submission of the special message, during 
        which Congress must complete action on the rescission/receipts 
        disapproval bill and present such bill to the President for 
        approval or disapproval;
            (2) after the period provided in paragraph (1), an 
        additional ten days (not including Sundays) during which the 
        President may exercise his authority to sign or veto the 
        rescission/receipts disapproval bill; and
            (3) if the President vetoes the rescission/receipts 
        disapproval bill during the period provided in paragraph (2), 
        an additional five calendar days of session after the date of 
        the veto.
    (c) If a special message is transmitted by the President under this 
Act and the last session of the Congress adjourns sine die before the 
expiration of the period described in subsection (b), the rescission or 
veto, as the case may be, shall not take effect. The message shall be 
deemed to have been retransmitted on the first Monday in February of 
the succeeding Congress and the review period referred to in subsection 
(b) (with respect to such message) shall run beginning after such first 
day.

SEC. 204. DEFINITIONS.

    As used in this Act:
            (a) The term ``rescission/receipts disapproval bill'' means 
        a bill or joint resolution which only disapproves, in whole, 
        rescissions of discretionary budget authority or only 
        disapproves vetoes of targeted tax benefits in a special 
        message transmitted by the President under this Act and--
                    (1) which does not have a preamble;
                    (2)(A) in the case of a special message regarding 
                rescissions, the matter after the enacting clause of 
                which is as follows: ``That Congress disapproves each 
                rescission of discretionary budget authority of the 
                President as submitted by the President in a special 
                message on XXXX'', the blank space being filled in with 
                the appropriate date and the public law to which the 
                message relates; and
                    (B) in the case of a special message regarding 
                vetoes of targeted tax benefits, the matter after the 
                enacting clause of which is as follows: ``That Congress 
                disapproves each veto of targeted tax benefits of the 
                President as submitted by the President in a special 
                message on XXXX'', the blank space being filled in with 
                the appropriate date and the public law to which the 
message relates; and
                    (3) the title of which is as follows: ``A bill 
                disapproving the recommendations submitted by the 
                President on XXXX'', the blank space being filled in 
                with the date of submission of the relevant special 
                message and the public law to which the message 
                relates.
            (b) The term ``calendar days of session'' shall mean only 
        those days on which both Houses of Congress are in session.
            (c) The term ``targeted tax benefit'' means any provision 
        of a revenue or reconciliation Act determined by the President 
        to provide a Federal tax deduction, credit, exclusion, 
        preference, or other concession to 100 or fewer beneficiaries. 
        Any partnership, limited partnership, trust, or S corporation, 
        and any subsidiary or affiliate of the same parent corporation, 
        shall be deemed and counted as a single beneficiary regardless 
        of the number of partners, limited partners, beneficiaries, 
        shareholders, or affiliated corporate entities.
            (d) The term ``appropriation Act'' means any general or 
        special appropriation Act, and any Act or joint resolution 
        making supplemental, deficiency, or continuing appropriations.

SEC. 205. CONGRESSIONAL CONSIDERATION OF LINE ITEM VETOES.

    (a) Presidential Special Message.--Whenever the President rescinds 
any budget authority as provided in this Act or vetoes any provision of 
law as provided in this Act, the President shall transmit to both 
Houses of Congress a special message specifying--
            (1) the amount of budget authority rescinded or the 
        provision vetoed;
            (2) any account, department, or establishment of the 
        Government to which such budget authority is available for 
        obligation, and the specific project or governmental functions 
        involved;
            (3) the reasons and justifications for the determination to 
        rescind budget authority or veto any provision pursuant of this 
        Act;
            (4) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary effect of the rescission or 
        veto; and
            (5) all actions, circumstances, and considerations relating 
        to or bearing upon the rescission or veto and the decision to 
        effect the rescission or veto and to the maximum extent 
        practicable, the estimated effect of the rescission upon the 
        objects, purposes, and programs for which the budget authority 
        is provided.
            (b) Transmission of Messages to House and Senate.--
            (1) Each special message transmitted under the Act shall be 
        transmitted to the House of Representatives and the Senate on 
        the same day, and shall be delivered to the Clerk of the House 
        of Representatives if the House is not in session, and to the 
        Secretary of the Senate if the Senate is not is session. Each 
        special message so transmitted shall be referred to the 
        appropriate committees of the House of Representatives and the 
        Senate. Each such message shall be printed as a document of 
        each House.
            (2) Any special message transmitted under the Act shall be 
        printed in the first issue of the Federal Register published 
        after such transmittal.
    (c) Introduction of Rescission/Receipts Disapproval Bills.--The 
procedures sit forth in subsection (d) shall apply to any rescission/
receipts disapproval bill introduced in the House of Representatives 
not later than the third calendar day of session beginning on the day 
after the date of submission of a special message by the President 
under section 2.
    (d) Consideration in the House of Representatives.
            (1) The committee of the House of Representatives to which 
        a rescission/receipts disapproval bill is referred shall report 
        it without amendment, and with or without recommendation, not 
        later than the eighth calendar day of session after the date of 
        its introduction. If the committee fails to report the bill 
        within that period, it is in order to move that the House 
        discharge the committee from further consideration of the bill. 
        A motion to discharge may be made only by an individual 
        favoring the bill (but only after the legislative day on which 
        a Member announces to the House the Member's intention to do 
        so). The motion is highly privileged. Debate thereon shall be 
        limited to not more than one hour, the time to be divided in 
        the House equally between a proponent and an opponent. The 
        previous question shall be considered as ordered on the motion 
        to its adoption without intervening motion. A motion to 
        reconsider the vote by which the motion is agreed to or 
        disagreed to shall not be in order.
            (2) After a rescission/receipts disapproval bill is 
        reported or the committee has been discharged from further 
        consideration, it is in order to move that the House resolve 
        into the Committee of the Whole House on the state of the Union 
        for consideration of the bill. All points of order against the 
        bill and against consideration of the bill are waived. The 
        motion is highly privileged. The previous question shall be 
        considered as order on that motion to its adoption without 
        intervening motion. A motion to reconsider the vote by which 
        the motion is agreed to or disagreed to shall not be in order. 
        During consideration of the bill in the Committee of the Whole, 
        the first reading of the bill shall be dispensed with. General 
        debate shall proceed without intervening motion, shall be 
        confined to the bill, and shall not exceed two hours equally 
        divided and controlled by a proponent and an opponent of the 
        bill. No amendment to the bill is in order, except any Member 
        may move to strike the disapproval of any rescission or 
        rescissions of budget authority or any proposed repeal of a 
        targeted tax benefit, as applicable, if supported by 49 other 
        Members. At the conclusion of the consideration of the bill for 
        amendment, the Committee shall rise and report the bill to the 
        House. The previous question shall be considered as ordered on 
        the bill and amendments thereto to final passage without 
        intervening motion. A motion to reconsider the vote on passage 
        of the bill shall not be in order.
            (3) 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 bill described in subsection (a) shall 
        be decided without debate.
            (4) It shall not be in order to consider more than one bill 
        described in subsection (c) or more than one motion to 
        discharge described in paragraph (1) with respect to a 
        particular special message.
            (5) Consideration of any rescission/receipts disapproval 
        bill under this subsection is governed by the rules of the 
        House of Representatives except to the extent specifically 
        provided by the provisions of this Act.
    (e) Consideration in the Senate.--
            (1) Any rescission/receipts disapproval bill received in 
        the Senate from the House shall be considered in the Senate 
        pursuant to the provisions of this Act.
            (2) Debate in the Senate on any rescission/receipts 
        disapproval bill and debatable motions and appeals in 
        connection therewith, shall be limited to not more than ten 
        hours. The time shall be equally divided between, and 
        controlled by, the majority leader and the minority leader or 
        their designees.
            (3) Debate in the Senate on any debatable motions or appeal 
        in connection with such bill shall be limited to one hour, to 
        be equally divided between, and controlled by the mover and the 
        manager of the bill, except that in the event the manager of 
        the bill is in favor of any such motion or appeal, the time in 
        opposition thereto shall be controlled by the minority leader 
        or his designee. Such leaders, or either of them, may, from the 
        time under their control on the passage of the bill, allot 
        additional time to any Senator during the consideration of any 
        debatable motion or appeal.
            (4) A motion to further limit debate is not debatable. A 
        motion to recommit (except a motion to recommit with 
        instructions to report back within a specified number of days 
        not to exceed one, not counting any day on which the Senate is 
        not in session) is not in order.
    (f) Points of Order.--
            (1) It shall not be in order in the Senate to consider any 
        rescission/receipts disapproval bill that relates to any matter 
        other than the rescission of budget authority or veto of the 
        provision of law transmitted by the President under this Act.
            (2) It shall not be in order in the Senate to consider any 
        amendment to a rescission/receipts disapproval bill.
            (3) Paragraphs (1) and (2) may be waived or suspended in 
        the Senate only by a vote of three-fifths of the members duly 
        chosen and sworn.

SEC. 206. REPORTS OF THE GENERAL ACCOUNTING OFFICE.

    Beginning on January 6, 1996, and at one-year intervals thereafter, 
the Comptroller General shall submit a report to each House of Congress 
which provides the following information:
            (a) A list of each proposed Presidential rescission of 
        discretionary budget authority and veto of a targeted tax 
        benefit submitted through special messages for the fiscal year 
        ending during the preceding calendar year, together with their 
        dollar value, and an indication of whether each rescission of 
        discretionary budget authority or veto of a targeted tax 
        benefit was accepted or rejected by Congress.
            (b) The total number of proposed Presidential rescissions 
        of discretionary budget authority and vetoes of a targeted tax 
        benefit submitted through special messages for the fiscal year 
        ending during the preceding calendar year, together with their 
        total dollar value.
            (c) The total number of Presidential rescissions of 
        discretionary budget authority or vetoes of a targeted tax 
        benefit submitted through special messages for the fiscal year 
        ending during the preceding calendar year and approved by 
        Congress, together with their total dollar value.
            (d) A list of rescissions of discretionary budget authority 
        initiated by Congress for the fiscal year ending during the 
        preceding calendar year, together with their dollar value, and 
        an indication of whether each such rescission was accepted or 
        rejected by Congress.
            (e) The total number of rescissions of discretionary budget 
        authority initiated and accepted by Congress for the fiscal 
        year ending during the preceding calendar year, together with 
        their total dollar value.
            (f) A summary of the information provided by subsections 
        (b), (c) and (e) for each of the ten fiscal years ending before 
        the fiscal year during this calendar year.

SEC. 207. 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 
        any provision of this Act violates the Constitution.
            (2) A copy of any complaint in an action brought under 
        paragraph (1) shall be promptly delivered to the Secretary of 
        the Senate and the Clerk of the House of Representatives, and 
        each House of Congress shall have the right to intervene in 
        such action.
            (3) Any action brought under paragraph (1) shall be heard 
        and determined by a three-judge court in accordance with 
        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) without the necessity of adopting a resolution to 
authorize such intervention.
    (b) Appeal to Supreme Court.--Notwithstanding any other provision 
of law, any order of the United States District Court for the District 
of Columbia which is issued pursuant to an action brought under 
paragraph (1) 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 paragraph (1) 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).

                    CHAPTER B--ENHANCED RESCISSIONS

SECTION 1. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS AND 
              TARGETED TAX BENEFITS.

    (a) In General.--Section 1012 of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 683) is amended to read as 
follows:

       ``expedited consideration of certain proposed rescissions

    ``Sec. 1012. ``(a) Proposed Rescission of Budget Authority or 
Repeal of Targeted Tax Benefits.--The President may propose, at the 
time and in the manner provided in subsection (b) the rescission of any 
budget authority provided in an appropriation Act or repeal of any 
targeted tax benefit provided in any revenue Act. Funds made available 
for obligation under this procedure may not be proposed for rescission 
again under this section.
    ``(b) Transmittal of Special Message.--
            ``(1) The President may transmit to Congress a special 
        message proposing to rescind amounts of budget authority or to 
        repeal any targeted tax benefit and include with that special 
        message a draft bill that, if enacted, would only rescind that 
        budget authority or repeal that targeted tax benefit. That bill 
        shall clearly identify the amount of budget authority that is 
        proposed to be rescinded for each program, project, or activity 
        to which that budget authority relates or the targeted tax 
        benefit proposed to be repealed, as the case may be. It shall 
        include a Deficit Reduction Account. The President may place in 
        the Deficit Reduction Account an amount not to exceed the total 
        rescissions in that bill. A targeted tax benefit may only be 
        proposed to be repealed under this section during the 20-
        calendar-day period (excluding Saturdays, Sundays, and legal 
        holidays) commencing on the day after the date of enactment of 
        the provision proposed to be repealed.
            ``(2) In the case of an appropriation Act that includes 
        accounts within the jurisdiction of more than one subcommittee 
        of the Committee on Appropriations, the President in proposing 
        to rescind budget authority under this section shall send a 
        separate special message and accompanying draft bill for 
        accounts within the jurisdiction of each such subcommittee.
            ``(3) Each special message shall specify, with respect to 
        the budget authority proposed to be rescinded, the following--
                    ``(A) the amount of budget authority which he 
                proposes to be rescinded;
                    ``(B) any account, department, or establishment of 
                the Government to which such budget authority is 
                available for obligation, and the specific project or 
                governmental functions involved;
                    ``(C) the reasons why the budget authority should 
                be rescinded;
                    ``(D) to the maximum extent practicable, the 
                estimated fiscal, economic, and budgetary effect 
                (including the effect on outlays and receipts in each 
                fiscal year) of the proposed rescission; and
                    ``(E) all facts, circumstances, and considerations 
                relating to or bearing upon the proposed rescission and 
                the decision to effect the proposed rescission, and to 
                the maximum extent practicable, the estimated effect of 
                the proposed rescission upon the objects, purposes, and 
                programs from which the budget authority is provided.
        Each special message shall specify, and respect to the proposed 
        repeal of targeted tax benefits, the information required by 
        subparagraphs (C), (D), and (E), as it relates to the proposed 
        repeal.
    ``(c) Procedures for Expedited Consideration.--
            ``(1)(A) Before the close of the second legislative day of 
        the House of Representatives after the date of receipt of a 
        special message transmitted to Congress under subsection (b), 
        the majority leader or minority leader of the House of 
        Representatives shall introduce (by request) the draft bill 
        accompanying that special message. If the bill is not 
        introduced as provided in the preceding sentence, then, on the 
        third legislative day of the House of Representatives after the 
        date of receipt of that special message, any Member of that 
        House may introduce the bill.
            ``(B) The bill shall be referred to the Committee on 
        Appropriations or the Committee on Ways and Means of the House 
        of Representatives, as applicable. The committee shall report 
        the bill without substantive revision and with or without 
        recommendation. The bill shall be reported not later than the 
        seventh legislative day of that House after the date of receipt 
        of that special message. If that committee fails to report the 
        bill within that period, that committee shall be automatically 
        discharged from consideration of the bill, and the bill shall 
        be placed on the appropriate calendar.
            ``(C)(i) During consideration under this paragraph, any 
        Member of the House of Representatives may move to strike any 
        proposed rescission or rescissions of budget authority or any 
        proposed repeal of a target tax benefit, as applicable, if 
        supported by 49 other Members.
            ``(ii) It shall not be in order for a Member of the House 
        of Representatives to move to strike any proposed rescission 
        under clause (i) unless the amendment reduces the appropriate 
        Deficit Reduction Account if the program, project, or account 
        to which the proposed rescission applies was identified in the 
        Deficit Reduction Account in the special message under 
        subsection (b).
            ``(D) A vote on final passage of the bill shall be taken in 
        the House of Representatives on or before the close of the 10th 
        legislative day of that House after the date of the 
        introduction of the bill in that House. If the bill is passed, 
        the Clerk of the House of Representatives shall cause the bill 
        to be engrossed, certified, and transmitted to the Senate 
        within one calendar day of the day on which the bill is passed.
            ``(2)(A) A motion in the House of Representatives to 
        proceed to the consideration of a bill under this section shall 
        be highly 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.
            ``(B) Debate in the House of Representatives on a bill 
        under this section shall not exceed four hours, which shall be 
        divided equally between those favoring and those opposing the 
        bill. A motion further to limit debate shall not be debatable. 
        It shall not be in order to move to recommit a bill under this 
        section or to move to reconsider the vote by which the bill is 
        agreed to or disagreed to.
            ``(C) Appeals from decisions of the Chair relating to the 
        application of the Rules of the House of Representatives to the 
        procedure relating to a bill under this section shall be 
        decided without debate.
            ``(D) Except to the extent specifically provided in the 
        preceding provisions of this subsection, consideration of a 
        bill under this section shall be governed by the Rules of the 
        House of Representatives. It shall not be in order in the House 
        of Representatives to consider any rescission bill introduced 
        pursuant to the provisions of this section under a suspension 
        of the rules or under a special rule.
            ``(3)(A) A bill transmitted to the Senate pursuant to 
        paragraph (1)(D) shall be referred to its Committee on 
        Appropriations or Committee on Finance, as applicable. That 
        committee shall report the bill without substantive revision 
        and with or without recommendation. The bill shall be reported 
        not later than the seventh legislative day of the Senate after 
        it receives the bill. A committee failing to report the bill 
        within such period shall be automatically discharged from 
        consideration of the bill, and the bill shall be placed upon 
        the appropriate calendar.
            ``(B)(i) During consideration under this paragraph, any 
        Member of the Senate may move to strike any proposed rescission 
        or rescissions of budget authority or any proposed repeal of a 
        targeted tax benefit, as applicable, if supported by 14 other 
        Members.
            ``(ii) It shall not be in order for a Member of the House 
        or Senate to move to strike any proposed rescission under 
        clause (i) unless the amendment reduces the appropriate Deficit 
        Reduction Account (pursuant to section 314) if the program, 
        project, or account to which the proposed rescission applies 
        was identified in the Deficit Reduction Account in the special 
        message under subsection (b).
            ``(4)(A) A motion in the Senate to proceed to the 
        consideration of a bill under this section 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.
            ``(B) Debate in the Senate on a bill under this section, 
        and all debatable motions and appeals in connection therewith, 
        (including debate pursuant to subparagraph (C)), shall not 
        exceed 10 hours. The time shall be equally divided between, and 
        controlled by, the majority leader and the minority leader or 
        their designees.
            ``(C) Debate in the Senate on any debatable motion or 
        appeal in connection with a bill under this section shall be 
        limited to not more than 1 hours, to be equally divided 
        between, and controlled by, the mover and the manager of the 
        bill, except that in the event the manager of the bill is in 
        favor of any such motion or appeal, the time in opposition 
        thereto, shall be controlled by the minority leader or his 
        designee. Such leaders, or either of them, may, from time under 
        their control on the passage of a bill, allot additional time 
        to any Senator during the consideration of an debatable motion 
        or appeal.
            ``(D) A motion in the Senate to further limit debate on a 
        bill under this section is not debatable. A motion to recommit 
        a bill under this section is not in order.
    ``(d) Amendments and Divisions Prohibited.--Except as otherwise 
provided by this section, no amendment to a bill considered under this 
section shall be in order in either the House of Representatives or the 
Senate. It shall not be in order to demand a division of the question 
in the House of Representatives (or in a Committee of the Whole) or in 
the Senate. No motion to suspend the application of this subsection 
shall be in order in either House, nor shall it be in order in either 
House to suspend the application of this subsection by unanimous 
consent.
    ``(e) Requirement To Make Available for Obligation.--
            ``(1) Any amount of budget authority proposed to be 
        rescinded in a special message transmitted to Congress under 
        subsection (b) shall be made available for obligation on the 
        day after the date on which either House rejects the bill 
        transmitted with that special message.
            ``(2) Any targeted tax benefit proposed to be repealed 
        under this section as set forth in a special message 
        transmitted to Congress under subsection (b) shall be deemed 
        repealed unless, during the period described in that 
        subsection, either House rejects the bill transmitted with that 
        special message.
    ``(f) Definitions.--For purposes of this section--
            ``(1) The term `appropriation Act' means any general or 
        special appropriation Act, and any Act or joint resolution 
        making supplemental, deficiency, or continuing appropriations;
            ``(2) The term `legislative day' means, with respect to 
        either House of Congress, any day of session; and
            ``(3) The term `targeted tax benefit' means any provision 
        which has the practical effect of providing a benefit in the 
        form of a different treatment to a particular taxpayer or a 
        limited class of taxpayers, whether or not such provision is 
        limited by its terms to a particular taxpayer or a class of 
        taxpayers. Such term does not include any benefit provided to a 
        class of taxpayers distinguished on the basis of general 
        demographic conditions such as income, number of dependents, or 
        marital status.''.
    (b) Exercise of Rulemaking Powers.--Section 904 of the 
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended--
            (1) in subsection (a), by striking ``and 1017'' and 
        inserting ``1012, and 1017''; and
            (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``sections 1012 and 1017''.
    (c) Conforming Amendments.--
            (1) Section 1011 of the Congressional Budget Act of 1974 (2 
        U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
        and by redesignating paragraph (4) as paragraph (3).
            (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
                    (A) in subsection (b)(1), by striking ``or the 
                reservation''; and
                    (B) in subsection (e)(1), by striking ``or a 
                reservation'' and by striking ``or each such 
                reservation''.
            (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
        by striking ``is to establish a reserve or'', by striking ``the 
        establishment of such a reserve or'', and by striking ``reserve 
        or'' each other place it appears.
            (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
                    (A) in subsection (a), by striking ``rescission 
                bill introduced with respect to a special message or'';
                    (B) in subsection (b)(1), by striking ``rescission 
                bill or'', by striking `bill or' the second place it 
                appears, by striking ``rescission bill with respect to 
                the same special message or'', and by striking ``, and 
                the case may be,'';
                    (C) in subsection (b)(2), by striking ``bill or'' 
                each place it appears;
                    (D) in subsection (c), by striking ``rescission'' 
                each place it appears and by striking ``bill or'' each 
                place it appears;
                    (E) in subsection (d)(1), by striking ``rescission 
                bill or'' and by striking ``, and all amendments 
                thereto (in the case of a rescission bill)'';
                    (F) in subsection (d)(2)--
                            (i) by striking the first sentence;
                            (ii) by amending the second sentence to 
                        read as follows: ``Debate on any debatable 
                        motion or appeal in connection with an 
                        impoundment resolution shall be limited to 1 
                        hour, to be equally divided between, and 
                        controlled by, the mover and the manager of the 
                        resolution, except that in the event that the 
                        manager of the 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.'';
                            (iii) by striking the third sentence; and
                            (iv) in the fourth sentence, by striking 
                        ``rescission bill or'' and by striking 
                        ``amendment, debatable motion,'' and by 
                        inserting ``debatable motion'';
                    (G) in paragraph (d)(3), by striking the second and 
                third sentences; and
                    (H) by striking paragraphs (4), (5), (6), and (7) 
                of paragraph (d).
    (d) Clerical Amendments.--The item relating to section 1012 in the 
table of sections for subpart B of title X of the Congressional Budget 
and Impoundment Control Act of 1974 is amended to read as follows: 
``Sec. 1012. Expedited consideration of certain proposed rescissions 
and targeted tax benefits.''.

                               TITLE III

                        miscellaneous provisions

SEC. 301. TRANSITION RULES.

    (a) In General.--With respect to fiscal years 1996 and 1997, for 
purposes of this Act, the concurrent resolution on the budget for 
fiscal year 1996 (H. Con. Res. 67) is deemed to be a joint budget 
resolution pursuant to section 301.
    (b) Cap Levels.--Consistent with subsection (a), spending cap 
levels for fiscal year 1996 through fiscal year 2002 are established as 
follows:
            (1) Discretionary Appropriations (Outlays)--
                    (A) Fiscal year 1996--
                            (i) for the defense category 
                        $265,406,000,000 in new budget authority and 
                        $264,043,000,000 in outlays; and
                            (ii) for the non-defense category 
                        $219,668,000,000 in new budget authority and 
                        $267,725,000,000 in outlays;
                    (B) Fiscal year 1997--
                            (i) for the defense category 
                        $267,962,000,000 in new budget authority and 
                        $265,734,000,000 in outlays; and
                            (ii) for the non-defense category 
                        $214,468,000,000 in new budget authority and 
                        $254,561,000,000 in outlays;
                    (C) Fiscal year 1998--
                            (i) for the defense category 
                        $269,731,000,000 in new budget authority and 
                        $264,531,000,000 in outlays; and
                            (ii) for the non-defense category 
                        $220,961,000,000 in new budget authority and 
                        $248,101,000,000 in outlays.
                    (D) Fiscal year 1999: $482,207,000,000 in new 
                budget authority and $510,482,000,000 in outlays;
                    (E) Fiscal year 2000: $489,379,000,000 in new 
                budget authority and $514,234,000,000 in outlays;
                    (F) Fiscal year 2001: $496,601,000,000 in budget 
                authority and $516,403,000,000 in outlays; and
                    (G) Fiscal year 2002: $498,837,000,000 in budget 
                authority and $515,075,000,000 in outlays.
            (2) Direct Spending--Social Security (Outlays)--
                    (A) Fiscal year 1996: $352,000,000,000;
                    (B) Fiscal year 1997: $371,000,000,000;
                    (C) Fiscal year 1998: $391,000,000,000;
                    (D) Fiscal year 1999: $411,000,000,000;
                    (E) Fiscal year 2000: $433,000,000,000;
                    (F) Fiscal year 2001: $456,000,000,000; and
                    (G) Fiscal year 2002: $480,000,000,000.
            (3) Direct Spending-Medicare (Outlays)--
                    (A) Fiscal year 1996: $171,000,000,000;
                    (B) Fiscal year 1997: $180,000,000,000;
                    (C) Fiscal year 1998: $189,000,000,000;
                    (D) Fiscal year 1999: $200,000,000,000;
                    (E) Fiscal year 2000: $212,000,000,000;
                    (F) Fiscal year 2001: $227,000,000,000; and
                    (G) Fiscal year 2002: $244,000,000,000.
            (4) Direct Spending--Medicaid--
                    (A) Fiscal year 1996: $96,000,000,000;
                    (B) Fiscal year 1997: $102,000,000,000;
                    (C) Fiscal year 1998: $106,000,000,000;
                    (D) Fiscal year 1999: $110,000,000,000;
                    (E) Fiscal year 2000: $115,000,000,000;
                    (F) Fiscal year 2001: $119,000,000,000; and
                    (G) Fiscal year 2002: $124,000,000,000.
            (5) Direct Spending--Other (Outlays)--
                    (A) Fiscal year 1996: $177,000,000,000;
                    (B) Fiscal year 1997: $184,000,000,000;
                    (C) Fiscal year 1998: $188,000,000,000;
                    (D) Fiscal year 1999: $203,000,000,000;
                    (E) Fiscal year 2000: $216,000,000,000;
                    (F) Fiscal year 2001: $221,000,000,000; and
                    (G) Fiscal year 2002: $230,000,000,000.

SEC. 302. EFFECTIVE DATES.

    (a) In General.--Except for Title II, the provisions of this Act 
are effective upon enactment.
    (b) Line-Item Veto and Enhanced Rescission Authority.--
            (1) Pursuant to the provisions of section 4 of this title, 
        chapter A of title II of this Act is effective upon enactment; 
        and
            (2) Chapter B of title II of this Act is effective upon the 
        invalidation of chapter A of such title.

SEC. 303. CONFORMING AMENDMENTS.

    (a) Part C (Emergency Powers to Eliminate Deficits in Excess of 
Maximum Deficit Amount) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is repealed.
    (b) Section 1122(c) of title 31, United States Code, is amended by 
striking ``The Comptroller General--'' and inserting in lieu thereof 
``The Directors of OMB and CBO, jointly--''.
    (c) Section 710 of the Social Security Act is repealed.
    (d) In section 305 of the Congressional Budget Act of 1974, strike 
out the word ``concurrent'' wherever it appears and insert in lieu 
thereof the word ``joint''.
    (e) In section 308 of the Congressional Budget Act of 1974--
            (1) strike out the word ``concurrent'' wherever it appears 
        and insert in lieu thereof the word ``joint''; and
            (2) strike out ``new spending authority described in 
        section 401(c)(2)'' wherever it appears and insert in lieu 
        thereof ``new entitlement authority''.
    (f) In section 310 of the Congressional Budget Act of 1974, strike 
out the word ``concurrent'' wherever it appears and insert in lieu 
thereof the word ``joint''.
    (g) In section 311 of the Congressional Budget Act of 1974, strike 
out the word ``concurrent'' wherever it appears and insert in lieu 
thereof the word ``joint''.
    (h)(1) Section 401 of the Congressional Budget Act of 1974 is 
repealed, and
    (2) Section 402 of such Act is renumbered as section 401, and 
section 403 of such Act is renumbered as section 402.
    (i) Section 404 of such Act is--
            (1) Renumbered as section 403, and
            (2) Amended to read as follows--
    Sec. 403. ``(a) Amendment of House Rules.--
            ``(1) Paragraph (b) of clause 1 of rule XI of the Rules of 
        the House of Representatives is amended by striking 
        subparagraph (4);
            ``(2) Clause 4(a)(2) of such rule is repealed; and
            ``(3) Clause 4(a)(3) of such rule is redesignated as clause 
        4(a)(2).
    ``(b) Amendment of Senate Rules.--Subparagraph (b) of paragraph 1 
of rule XXV of the Standing Rules of the Senate is amended by striking 
clause 3 and clause 4.''.
    (j) Section 405 of such Act is repealed.
    (k) Section 406 of such Act is renumbered as section 404.

SEC. 304. AMENDMENTS TO TITLE 31, UNITED STATES CODE.

    (a) Definition.--Section 1101 of title 31, United States Code, is 
amended by adding at the end thereof the following new paragraph:
            ``(3) `budget biennium' has the meaning given to such term 
        in paragraph (2) of section 3 of the Congressional Budget and 
        Impoundment Control Act of 1974 (2 U.S.C. 622(2))''.
    (b) Budget Contents and Submission to the Congress.--
            (1) So much of section 1105(a) of title 31, United States 
        Code, as precedes paragraph (1) thereof is amended to read as 
        follows:
    ``(a) On or before the first Monday in February of each odd-
numbered year, beginning with the One Hundred Fifth Congress, the 
President shall transmit to the Congress the budget for the biennium 
beginning on October 1 of such calendar year. The budget transmitted 
under this subsection shall include a budget message and summary and 
supporting information. The President shall include in each budget the 
following.''.
            (2) Section 1105(a)(5) of title 31, United States Code, is 
        amended by striking ``the fiscal year for which the budget is 
        submitted and the 4 fiscal years after that year'' and 
        inserting ``each fiscal year in the biennium for which the 
        budget is submitted and in the succeeding two biennia''.
            (3) Section 1105(a)(6) of title 31, United States Code, is 
        amended by striking ``the fiscal year for which the budget is 
        submitted and the 4 fiscal years after that year'' and 
        inserting ``each fiscal year in the biennium for which the 
        budget is submitted and in the succeeding two biennia''.
            (4) Section 1105(a)(9)(C) of title 31, United States Code, 
        is amended by striking ``the fiscal year'' and inserting ``each 
        fiscal year in the biennium''.
            (5) Section 1105(a)(12) of title 31, United States Code, is 
        amended--
                    (A) by striking ``the fiscal year'' in subparagraph 
                (A) and inserting ``each fiscal year in the biennium''; 
                and
                    (B) by striking ``4 fiscal years after that year'' 
                in subparagraph (B) and inserting ``4 fiscal years 
                immediately following the second fiscal year in such 
                biennium''.
            (6) Section 1105(a)(13) of title 31, United States Code, is 
        amended by striking ``the fiscal year'' and inserting ``each 
        fiscal year in the biennium''.
            (7) Section 1105(a)(14) of title 31, United States Code, is 
        amended by striking ``that year'' and inserting ``each fiscal 
        year in the biennium for which the budget is submitted''.
            (8) Section 1105(a)(16) of title 31, United States Code, is 
        amended by striking ``the fiscal year'' and inserting ``each 
        fiscal year in the biennium''.
            (9) Section 1105(a)(17) of title 31, United States Code, is 
        amended--
                    (A) by striking ``the fiscal year following the 
                fiscal year'' and inserting ``each fiscal year in the 
                two biennia following the biennium'';
                    (B) by striking ``that following fiscal year'' and 
                inserting ``each such fiscal year''; and
                    (C) by striking ``fiscal year before the fiscal 
                year'' and inserting ``biennium before the biennium''.
            (10) Section 1105(a)(18) of title 31, United States Code, 
        is amended--
                    (A) by striking ``the prior fiscal year'' and 
                inserting ``each of the 2 most recently completed 
                fiscal years'';
                    (B) by striking ``for that year'' and inserting 
                ``with respect to that fiscal year''; and
                    (C) by striking ``in that year'' and inserting ``in 
                that fiscal year''.
            (11) Section 1105(a)(19) of title 31, United States Code, 
        is amended--
                    (A) by striking ``the prior fiscal year'' and 
                inserting ``each of the 2 most recently completed 
                fiscal years'';
                    (B) by striking ``for that year'' and inserting 
                ``with respect to that fiscal year''; and
                    (C) by striking ``in that year'' each place it 
                appears and inserting ``in that fiscal year''.
    (c) Estimated Expenditures of Legislative and Judicial Branches.--
Section 1105(b) of title 31, United States Code, is amended by striking 
``each year'' and inserting ``each even-numbered year''.
    (d) Recommendations To Meet Estimated Deficiencies.--Section 
1105(c) of title 31, United States Code, is amended--
            (1) by striking ``fiscal year for'' each place it appears 
        and inserting ``biennium for'';
            (2) by inserting ``or current biennium, as the case may 
        be,'' after ``current fiscal year''; and
            (3) by striking ``that year'' and inserting ``that 
        period''.
    (e) Statement With Respect To Certain Changes.--Section 1105(d) of 
title 31, United States Code, is amended by striking ``fiscal year'' 
and inserting ``biennium''.
    (f) Capital Investment Analysis.--Section 1105(e) of title 31, 
United States Code, is amended by striking ``ensuing fiscal year'' and 
inserting ``biennium to which such budget relates''.
    (g) Supplemental Budget Estimates and Changes.--
            (1) Section 1106(a) of title 31, United States Code, is 
        amended--
                    (A) in the matter preceding paragraph (1) by 
                striking ``fiscal year'' and inserting ``biennium'';
                    (B) in paragraph (1) by striking ``that fiscal 
                year'' and inserting ``each fiscal year in such 
                biennium'';
                    (C) in paragraph (2) by striking ``4 fiscal years 
                following the fiscal year'' and inserting ``4 fiscal 
                years following the biennium'';
                    (D) by striking ``future fiscal years'' in 
                paragraph (3) and inserting ``the 4 fiscal years 
                following the biennium for which the budget is 
                submitted''; and
                    (E) by striking ``fiscal year'' in paragraph (3) 
                and inserting ``biennium''.
            (2) Section 1106(b) of title 31, United States Code, is 
        amended by striking ``the fiscal year'' and inserting ``each 
        fiscal year in the biennium''.
    (h) Year-Ahead Requests for Authorizing Legislation.--Section 1110 
of title 31, United States Code, is amended--
            (1) by striking ``fiscal year'' and inserting ``biennium 
        (beginning on or after October 1, 1997)''; and
            (2) by striking ``year before the year in which the fiscal 
        year begins'' and inserting ``second calendar year preceding 
        the calendar year in which the biennium begins''.
    (i) Budget Information on Consulting Services.--Section 1114 of 
title 31, United States Code, is amended--
            (1) by striking ``The'' each place it appears and inserting 
        ``For each biennium beginning with the biennium beginning on 
        October 1, 1997, the ``; and
            (2) by striking ``each year'' each place it appears.

SEC. 305. EFFECT OF CERTAIN JUDICIAL ACTIONS.

    (a) In the event that any of the provisions of title II, chapter A 
are invalidated, all provisions of such chapter are invalidated; and
    (b) Immediately upon a final determination invalidating chapter A 
of title II, chapter B of title II shall become effective.
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