1.This Act may be cited as
the Economic Disaster Prevention Act
of 2010
.
<enum>I</enum><header>Spending Limits
and Control</header>
<subtitle id="id5331D44CA1BC43B794B5F75E479B0BC2"><enum>A</enum><header>Spending
limits</header>
<section id="id7586BBBD3BAD4027BF0CA966DFB5CCA5"><enum>101.</enum><header>Non-defense
discretionary spending limits</header>
<subsection id="ID61c489f4ab02413d967829f6c326d035"><enum>(a)</enum><header>Non-Defense
discretionary spending limits</header><text>Section 251 of the Balanced Budget
and Emergency Deficit Control of Act of 1985 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idB43F63D778C5430AA90AC85FBB6D6869" style="OLC">
<subsection id="IDafc52f71385c40c3829fd55007c8ff13"><enum>(a)</enum><header>Non-Defense
discretionary spending limits</header><text>For each fiscal year set forth in
this subsection, the total level of discretionary spending for non-defense
discretionary spending programs, projects, and activities shall not exceed the
following levels:</text>
<paragraph id="ID044b6d45ad7a4c6c91cfe37bd6ed50b3"><enum>(1)</enum><text>For fiscal year
2011, $552,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="ID5fe149eb1b2749a3a15f39281c94d4e7"><enum>(2)</enum><text>For fiscal year
2012, $559,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="IDbafc52b4376f42879720a05d627d9288"><enum>(3)</enum><text>For fiscal year
2013, $567,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="IDaf2a0f7f979141398968c2e71d5d769f"><enum>(4)</enum><text>For fiscal year
2014, $576,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="IDa90e7820c2fe439d871fd4dfadaf5466"><enum>(5)</enum><text>For fiscal year
2015, $588,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="ID12821706a8d948d3b515b57519a52e43"><enum>(6)</enum><text>For fiscal year
2016, $601,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="IDb6ebbbcd749849239fe2c5f18b1bca32"><enum>(7)</enum><text>For fiscal year
2017, $615,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="ID8dd762adc39440a2a9bb83a66b3b17b7"><enum>(8)</enum><text>For fiscal year
2018, $628,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="ID581b3e2c881740d597f8672d0e246ff8"><enum>(9)</enum><text>For fiscal year
2019, $642,000,000,000 in new budget authority.</text>
</paragraph><paragraph id="ID746e34ff00114b3fb24d7012c6a285a1"><enum>(10)</enum><text>For fiscal year
2020, $657,000,000,000 in new budget authority.</text>
</paragraph></subsection><subsection id="ID0e13bc3809984f708c306b545e912c32"><enum>(b)</enum><header>Sequence of
sequestration reports</header><text>Within 15 calendar days after Congress
adjourns to end a session and on the same day as a spending reduction ordered
under section 252A, but prior to any spending reduction required by section
252A, OMB shall issue a final spending reduction report to reduce an excess
spending amount.</text>
</subsection><subsection id="ID35127e5d029b47d5979364c39286117d"><enum>(c)</enum><header>Spending
reduction order</header><text>A spending reduction ordered pursuant to
subsection (b) shall be implemented using the procedures set forth in section
256.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDcba4e3718439473b9d54b40ad017fc0d"><enum>(b)</enum><header>Conforming
amendment</header><text>The item relating to section 251 in the table of
contents set forth in 250(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id6909C138A1FF4B138C214A00E144B028" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 251. Non-defense
discretionary spending
limits.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID43d4ad6e449f468daf25c157bcd68767"><enum>102.</enum><header>Direct
spending limits</header>
<subsection id="IDa35d354a67304e399f63778c1f583f84"><enum>(a)</enum><header>Control of
direct spending</header><text>The Balanced Budget and Emergency Deficit Control
Act of 1985 is amended by adding after section 252 the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="id3AE5CDB51E014479BBB067EAC3E171EE" style="OLC">
<section id="IDa0cb5f33e60a4d3ca5cbc7d84d493882"><enum>252A.</enum><header>Direct
spending limits</header>
<subsection id="ID95f0d33f57b141be848934716eeb6d9a"><enum>(a)</enum><header>Direct spending
limits</header><text>For fiscal year 2011 and each ensuing fiscal year through
fiscal year 2020, the total level of direct spending for all direct spending
programs, projects, and activities for any such fiscal year shall not exceed
the total level of spending for all such programs, projects, and activities for
the previous fiscal year after the direct spending for each such program,
project, or activity is increased by the calculation made pursuant to section
257.</text>
</subsection><subsection id="IDa3eb7a90eb304edf96659c33dd670b73"><enum>(b)</enum><header>Sequence of
sequestration reports</header><text>Within 15 calendar days after Congress
adjourns to end a session and on the same day as a spending reduction ordered
under sections 251, but after any spending reduction required by section 251,
OMB shall issue a final spending reduction report to reduce an excess spending
amount (if any remains).</text>
</subsection><subsection id="ID270a6ff09a6644f4a130811d0b50f397"><enum>(c)</enum><header>Spending
reduction order</header><text>A spending reduction ordered pursuant to
subsection (b) shall be implemented using the procedures set forth in section
256.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID85bd6ac8772b4085b78f2fa4253adbc4"><enum>(b)</enum><header>Conforming
amendment</header><text>The table of contents set forth in 250(c) of the
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by
amending the item relating to section 256 to read as follows:</text>
<quoted-block id="idee7bf095-3577-4894-a41e-5553a22f580f" style="OLC">
<toc>
<toc-entry idref="IDa0cb5f33e60a4d3ca5cbc7d84d493882" level="section">Sec. 252A. Direct spending
limits.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="id0A08CA48EC0749F5B06B1DD496C7F0E7"><enum>B</enum><header>Reports and
orders</header>
<section id="ID0fc0ebce44724715bccd3dc0d5ba8c35"><enum>111.</enum><header>Reports and
orders</header><text display-inline="no-display-inline">Section 254 of the
Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id3A51378ABF6245958FC5EE90A3799F04" style="OLC">
<section id="IDc39fc5462f1e40419dff018b20bf45da"><enum>254.</enum><header>Reports and
orders</header>
<subsection id="IDa5fefacf4178448b81d051c7a28c8bc6"><enum>(a)</enum><header>Timetable</header>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Entry: 2 text, bold hds" table-type="">
<tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt-no-ldr" colname="column1" colsep="0" colwidth="165pts" min-data-value="120" rowsep="0"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="0" colwidth="160pts" min-data-value="160" rowsep="0"></colspec>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"><bold>Date:</bold></entry><entry colname="column2" leader-modify="clr-ldr"><bold>Action to be
completed:</bold></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">5 days before the President's
budget submission</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">CBO sequestration preview report.</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">President's budget
submission</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">OMB sequestration preview report.</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">August 10</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">CBO sequestration update
report.</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">August 20</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">OMB sequestration update
report.</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">10 days after end of
session</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">CBO
sequestration final report.</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">15 days after end of
session</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">OMB
sequestration final report: Presidential order.</entry>
</row>
</tbody>
</tgroup>
</table>
</subsection><subsection id="IDe73d9adb8a444c87afd02db519f13a72"><enum>(b)</enum><header>Submission and
availability of reports</header><text>Each report required by this section
shall be submitted to the Budget Committees of the House of Representatives and
the Senate. On the following day a notice of the report shall be printed in the
Federal Register.</text>
</subsection><subsection id="ID753ce4fe830142dfaad8f0327a4a9cc5"><enum>(c)</enum><header>Sequestration
preview reports</header>
<paragraph id="ID02e131a52fc64155a25cb448a97ea0db"><enum>(1)</enum><header>Reporting
requirement</header><text>On the dates specified in subsection (a), OMB and CBO
shall issue a preview report regarding non-defense discretionary sequestration
based on laws enacted through those dates.</text>
</paragraph><paragraph id="IDeac4ef9486274b38a9107158d500215d"><enum>(2)</enum><header>Non-defense
discretionary spending limit sequestration report</header><text>The preview
reports shall set forth estimates for the current year and each subsequent year
through 2019 of the applicable non-defense discretionary spending limits and an
explanation of any adjustments in such limits under section 251.</text>
</paragraph><paragraph id="IDe6af4265a7bb4fc8ae86d6213da833d9"><enum>(3)</enum><header>Direct spending
limit sequestration report</header><text>The preview reports shall set forth,
for the current year and the budget year, estimates for each of the
following:</text>
<subparagraph id="ID79a7fe3143c84ac5b227e63aecca5fcd"><enum>(A)</enum><text>The amount of
total direct spending, if any, calculated under subsection 252A(b).</text>
</subparagraph><subparagraph id="ID9ba47d515e1e4e9b8e298a3efd4d2fe6"><enum>(B)</enum><text>A list
identifying each law enacted and sequestration implemented after the date of
enactment of this section included in the calculation of the amount of deficit
increase or decrease and specifying the budgetary effect of each such
law.</text>
</subparagraph><subparagraph id="IDf617f5bb990f4de29bf33b4e1fe1eded"><enum>(C)</enum><text>The sequestration
percentage or percentages necessary to eliminate a deficit increase under
section 252A(c).</text>
</subparagraph></paragraph><paragraph id="ID32b317a48acf472fbd11d590a0ee292d"><enum>(4)</enum><header>Explanation of
differences</header><text>The OMB reports shall explain the differences between
OMB and CBO estimates for each item set forth in this subsection.</text>
</paragraph></subsection><subsection id="ID02c55c22a15640468cf24ffaf4fedb74"><enum>(d)</enum><header>Sequestration
update reports</header><text>On the dates specified in subsection (a), OMB and
CBO shall issue a sequestration update report, reflecting laws enacted through
those dates, containing all of the information required in the sequestration
preview reports.</text>
</subsection><subsection id="ID0b9b0d7c5d8b411f8a391ee4b398bdaf"><enum>(e)</enum><header>Final
sequestration reports</header>
<paragraph id="ID02c6ccc24562451883521309b8268d9d"><enum>(1)</enum><header>Reporting
requirement</header><text>On the dates specified in subsection (a), OMB and CBO
shall issue a final sequestration report, updated to reflect laws enacted
through those dates.</text>
</paragraph><paragraph id="ID479866ec56394b6a816d8bb098477a9c"><enum>(2)</enum><header>Non-defense
discretionary spending sequestration reports</header><text>The final reports
shall set forth estimates for each of the following:</text>
<subparagraph id="ID18893fe46a0549b1bd7f51638f1bd511"><enum>(A)</enum><text>For the current
year and each subsequent year the applicable non-defense discretionary spending
limits for each category and an explanation of any adjustments in such limits
under section 251.</text>
</subparagraph><subparagraph id="ID7e73f262b9584962867ecbb24b7ef0a0"><enum>(B)</enum><text>For the current
year and the budget year the estimated new budget authority and outlays for
each category and the breach, if any, in each category.</text>
</subparagraph><subparagraph id="IDf79137fa448b484282ee9d6b8407cbbe"><enum>(C)</enum><text>For each category
for which a sequestration is required, the sequestration percentages necessary
to achieve the required reduction.</text>
</subparagraph><subparagraph id="IDd815ded6bb704b71ba9ad26b0d26299a"><enum>(D)</enum><text>For the budget
year, for each account to be sequestered, estimates of the baseline level of
budgetary resources subject to sequestration and resulting outlays and the
amount of budgetary resources to be sequestered and resulting outlay
reductions.</text>
</subparagraph></paragraph><paragraph id="ID02eda9c662ed4f8e872bf53bc1439d6b"><enum>(3)</enum><header>Direct spending
report</header><text>The final reports shall contain all the information
required in the direct spending sequestration preview report. In addition, the
report shall contain, for the budget year, for each account to be sequestered,
estimates of the baseline level of sequestrable budgetary resources and
resulting outlays and the amount of budgetary resources to be sequestered and
resulting outlay reductions. The report shall also contain estimates of the
effects on outlays of the sequestration in each outyear for direct spending
programs.</text>
</paragraph><paragraph id="ID1a6af4c13b7f483bb3b11c280e88b5a0"><enum>(4)</enum><header>Explanation of
differences</header><text>The OMB report shall explain any differences between
OMB and CBO estimates of the amount of any net direct spending change
calculated under section 252A, any excess deficit, any breach, and any required
sequestration percentage. The OMB report shall also explain differences in the
amount of sequesterable resources for any budget account to be reduced if such
difference is greater than $5,000,000.</text>
</paragraph><paragraph id="IDda9587f809fe4369be8b12c238e7f2f6"><enum>(5)</enum><header>Presidential
order</header><text>On the date specified in subsection (a), if in its final
sequestration report OMB estimates that any sequestration is required, the
President shall issue an order fully implementing without change all
sequestrations required by the OMB calculations set forth in that report. This
order shall be effective on issuance.</text>
</paragraph></subsection><subsection id="ID6cec179c62724e62bcda6346ec40049f"><enum>(f)</enum><header>Within-Session
sequestration reports</header><text>If an appropriation for a fiscal year in
progress is enacted (after Congress adjourns to end the session for that budget
year and before July 1 of that fiscal year) that causes a breach, 10 days later
CBO shall issue a report containing the information required in subsection
(e)(2). Fifteen days after enactment, OMB shall issue a report containing the
information required in subsections (e)(2) and (e)(4). On the same day as the
OMB report, the President shall issue an order fully implementing without
change all sequestrations required by the OMB calculations set forth in that
report. This order shall be effective on issuance.</text>
</subsection><subsection id="ID151a8d1ed6194765a762832d5576c6cd"><enum>(g)</enum><header>GAO compliance
report</header><text>Upon request of the Committee on the Budget of the House
of Representatives or the Senate, the Comptroller General shall submit to
Congress and the President a report on—</text>
<paragraph id="ID65dcc4526d67408d8fb498b18bf5faba"><enum>(1)</enum><text>the extent to
which each order issued by the President under this section complies with all
of the requirements contained in this section, either certifying that the order
fully and accurately complies with such requirements or indicating the respects
in which it does not; and</text>
</paragraph><paragraph id="IDdb9698b29eb54d77925a14243c33c913"><enum>(2)</enum><text>the extent to
which each report issued by OMB or CBO under this section complies with all of
the requirements contained in this section, either certifying that the report
fully and accurately complies with such requirements or indicating the respects
in which it does not.</text>
</paragraph></subsection><subsection id="IDd99e6896f0d84a17b7f80d93bd020499"><enum>(h)</enum><header>Low-Growth
report</header><text>At any time, CBO shall notify Congress if—</text>
<paragraph id="IDe145bdc257814e20aa8f539e3361efd7"><enum>(1)</enum><text>during the period
consisting of the quarter during which such notification is given, the quarter
preceding such notification, and the 4 quarters following such notification,
CBO or OMB has determined that real economic growth is projected or estimated
to be less than zero with respect to each of any 2 consecutive quarters within
such period; or</text>
</paragraph><paragraph id="ID8e88f8f886674b73af9044e81f4448e6"><enum>(2)</enum><text>the most recent
of the Department of Commerce's advance preliminary or final reports of actual
real economic growth indicate that the rate of real economic growth for each of
the most recently reported quarter and the immediately preceding quarter is
less than one percent.</text>
</paragraph></subsection><subsection id="ID5abd5791c0f44a47919a939077219e20"><enum>(i)</enum><header>Economic and
technical assumptions</header><text>In all reports required by this section,
OMB shall use the same economic and technical assumptions as used in the most
recent budget submitted by the President under section 1105(a) of title 31,
United States
Code.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID390a43e13ac74fc78a57abdb5b5403a4"><enum>112.</enum><header>Spending
limits enforcement</header>
<subsection id="IDc9e6e8e5ba0b45cf8680207d11048207"><enum>(a)</enum><header>Conforming
amendments to section 312</header><text>Section 312 of the Congressional Budget
Act of 1974 is amended—</text>
<paragraph id="IDa4032c7fa7b5454499373cc151952bc3"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id107523903EFC4B368D820C06B7D6DDBD" style="OLC">
<subsection id="ID919189e7a840432a83d9aed2fc5ecea9"><enum>(a)</enum><header>Budget
committee determinations</header><text>For purposes of this title, the levels
of new budget authority, outlays, direct spending, deficits, revenues, and
debt, or the increases or decreases of such levels for purpose of section 303,
shall be determined on the basis of estimates made by the Committee on the
Budget of the House of Representatives or the Senate, as
applicable.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID30d71c94316c429da562ff2396689e47"><enum>(2)</enum><text>by striking
subsections (b) and (c) and redesignating subsections (d), (e), and (f) as (h),
(i), and (j).</text>
</paragraph></subsection><subsection id="ID0fb59ab0725d486ba9236d91a792e285"><enum>(b)</enum><header>Enforcement
amendments to section 312</header><text>Section 312 of Congressional Budget Act
of 1974 is further amended by adding at the end the following new subsections
after subsection (a):</text>
<quoted-block display-inline="no-display-inline" id="id87606EC4F9564A40901B6E515DD0CDFF" style="OLC">
<subsection id="IDd78c240ee9594e19bbcfba2c2634aa28"><enum>(b)</enum><header>Non-Defense
discretionary spending limit point of order</header><text>It shall not be in
order in the House of Representatives or the Senate to consider any bill, joint
resolution, amendment, concurrent resolution, or conference report that—</text>
<paragraph id="ID9e56ddbeb289409c95e0d013907e44ff"><enum>(1)</enum><text>causes the
non-defense discretionary spending limits for the budget year to be
breached;</text>
</paragraph><paragraph id="ID1cb136657b1a43bcaf79da570fba1f9e"><enum>(2)</enum><text>increases the
non-defense discretionary spending limits for the budget year or any ensuing
fiscal year; or</text>
</paragraph><paragraph id="IDc27ce83a567949258901750dde014b9f"><enum>(3)</enum><text>includes any
provision that has the effect of modifying the application of section 251 of
the Balanced Budget and Emergency Deficit Control Act of 1985.</text>
</paragraph></subsection><subsection id="ID5ca32fcbb2784183a1aaaab4a3d5b76a"><enum>(c)</enum><header>Direct spending
limit point of order</header><text>It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment, concurrent resolution, or conference report that—</text>
<paragraph id="IDb21291abd22d4b299a37d3e213e4e2d5"><enum>(1)</enum><text>causes the direct
spending limits for the budget year to be breached; or</text>
</paragraph><paragraph id="ID3a6f44418e6e4614911686b2e12f367b"><enum>(2)</enum><text>increases
aggregate level of direct spending for any ensuing fiscal year.</text>
</paragraph></subsection><subsection id="ID7644ca682fee488d8c97f09a7b23f81b"><enum>(d)</enum><header>Sequestration
application</header><text>It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment, concurrent resolution, or conference report that—</text>
<paragraph id="IDe2274138925f413e94a573f8c98b07e4"><enum>(1)</enum><text>includes any
provision that has the effect of modifying the application of section 256 of
the Balanced Budget and Emergency Deficit Control Act of 1985 to any program
subject to sequestration or exempt from sequestration; and</text>
</paragraph><paragraph id="IDa5f2f0fef2304e39808abae8bcfd442e"><enum>(2)</enum><text>includes any
provision that has the effect of modifying the application of section 251 and
252A to any program subject to sequestration or exempt from
sequestration.</text>
</paragraph></subsection><subsection id="id3834FF1E8BBB47D48B594723B9A58C4B"><enum>(e)</enum><header>Waiver or
suspension</header>
<paragraph id="idAC802B80E0C34B5BA99E6458261E96C3"><enum>(1)</enum><header>Senate</header><text>The
provisions of this section may be waived or suspended in the Senate only by the
affirmative vote of three-fifths of the Members, duly chosen and sworn.</text>
</paragraph><paragraph id="idD49F161B2C8F4C7BB6B6900A3929AB4E"><enum>(2)</enum><header>House</header><text>The
provisions of this section may be waived or suspended in the House of
Representatives:</text>
<subparagraph id="id6D70EF808C894C12BCD1EDF11CFFC641"><enum>(A)</enum><text>Only by a rule or
order proposing only to waive such provisions by an affirmative vote of
two-thirds of the Members, duly chosen and sworn.</text>
</subparagraph><subparagraph id="idD0343A930540468F9BC16606F888BD32"><enum>(B)</enum><text>It shall not be
in order to consider a rule or order that waives the application of
subparagraph (A).</text>
</subparagraph><subparagraph id="id2CA310972B4F445A98BD7BA014D19C2B"><enum>(C)</enum><text>It shall not be
in order for the Speaker to entertain a motion to suspend the application of
this section under clause 1 of rule XV of the Rules of the House of
Representatives.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID89c9f7b9fed948e8b5ec322f313aac61"><enum>113.</enum><header>Spending
reduction orders</header>
<subsection id="ID921dd624f79647c797df8a7fd6c39920"><enum>(a)</enum><header>In
general</header><text>Section 256 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id4C15672CF1BC4723A10067181ED0B679" style="OLC">
<section id="ID9ca509b91ce44db8b7c3967be8850f68"><enum>256.</enum><header>Spending
reduction order</header>
<subsection id="ID8978808310b54ce0a497ab20af864248"><enum>(a)</enum><header>Application</header><text>A
spending reduction order issued pursuant to this part shall apply to eliminate
breaches of the limits set forth in sections 251 (non-defense discretionary
spending limits) and 252A (direct spending limits).</text>
</subsection><subsection id="IDbb2687f72dfd4b789f7cf74a8d415f56"><enum>(b)</enum><header>Waiver or
suspension</header>
<paragraph id="id5FCF83ABFA6A4DDD9E996A154EAA90E7"><enum>(1)</enum><header>Senate</header><text>In
the Senate, the provisions of this section may be waived or suspended in the
Senate only by the affirmative vote of two-thirds of the Members, duly chosen
and sworn.</text>
</paragraph><paragraph id="ID810cf5d628924393b67155b9dbdd4c54"><enum>(2)</enum><header>House</header><text display-inline="yes-display-inline">In the House:</text>
<subparagraph id="ID520b6834ba0649b3a056b0b22e846ee3"><enum>(A)</enum><text>The provisions of
this section may be waived or suspended in the House of Representatives only by
a rule or order proposing only to waive such provisions by an affirmative vote
of two-thirds of the Members, duly chosen and sworn.</text>
</subparagraph><subparagraph id="IDda8cca443cd34ddead69b15a7165892d"><enum>(B)</enum><text>It shall not be
in order to consider a rule or order that waives the application of paragraph
(1).</text>
</subparagraph><subparagraph id="IDd6770336c8a24bb894593b9b0ff384c4"><enum>(C)</enum><text>It shall not be
in order for the Speaker to entertain a motion to suspend the application of
this section under clause 1 of rule XV of the Rules of the House of
Representatives.</text>
</subparagraph></paragraph></subsection><subsection id="ID625a71196db34da5a3357e0ecfbde657"><enum>(c)</enum><header>General
rules</header>
<paragraph id="ID810ba261a0774e718d8463423674b0d4"><enum>(1)</enum><header>Calculation of
spending reduction percentage</header><text>OMB shall include in its final
spending sequestration report a requirement that each nonexempt spending
account shall be reduced by an amount of budget authority calculated by
multiplying the baseline level of budgetary resources in that account at that
time by the uniform percentage necessary to reduce outlays sufficient to
eliminate an excess spending amount.</text>
</paragraph><paragraph id="ID045dd7146025403992b89d6ae1add01e"><enum>(2)</enum><header>Exemptions</header><text>The
following shall be exempt from reduction under any order issued under this
section:</text>
<subparagraph id="IDea7cf65d44424bc591bc4d51dae043b2"><enum>(A)</enum><text>Payments for net
interest.</text>
</subparagraph><subparagraph id="IDa5600deb45be42e3957bde69170f6973"><enum>(B)</enum><text>Benefits payable
under the old-age, survivors, and disability insurance program established
under title II of the Social Security Act if—</text>
<clause id="ID3faa36b0d177468591e30154527f80e9"><enum>(i)</enum><text>OASDI Trust Funds
are actuarially solvent in the 75-year period utilized in the most recent
annual report of the Board of Trustees provided pursuant to section 201(C)(2)
of the Social Security Act; and</text>
</clause><clause id="IDbf4ca6681af74b3f9ac8b6daa7cc7fe0"><enum>(ii)</enum><text>OASDI Trust
Funds have not run a cash deficit in the fiscal year prior to the transmittal
of the most recent Sequestration Preview Report.</text>
</clause></subparagraph><subparagraph id="ID4eed172cf17144c19d6b1e9cf520aee3"><enum>(C)</enum><text>Benefits provided
to veterans defined as direct spending payable by the Department of Veterans
affairs.</text>
</subparagraph><subparagraph id="ID81a422860e6545fc886e196c2c8f41f5"><enum>(D)</enum><text>Obligated
balances of budget authority carried over from prior fiscal years.</text>
</subparagraph><subparagraph id="IDfb09d38ce5364968b77ff4bd13a46c7a"><enum>(E)</enum><text>Any obligations
of the Federal Government required to be paid under the United States
Constitution or legally contractual obligations.</text>
</subparagraph><subparagraph id="ID63c6ddbd805d49eb8e3cf25a20fd345a"><enum>(F)</enum><text>Provisions of
spending legislation designated by the President, and so designated in statute,
as an emergency, except an amount of budget authority and the outlays flowing
therefrom so designated that is above the emergency reserve fund as calculated
in section 317(b) of Congressional Budget Act of 1974 shall not be
exempt.</text>
</subparagraph><subparagraph id="IDbbd33ea0c98045e7a4783eca1d70d5d5"><enum>(G)</enum><text>Any program whose
growth in the budget year is equal to or less than the consumer price
index.</text>
</subparagraph><subparagraph id="ID3208507d2cba42dd8cf7d0afcf09228c"><enum>(H)</enum><text>Intergovernmental
transfers.</text>
</subparagraph></paragraph><paragraph id="ID6a2dce6c53ba4b35ac3a7597ab594e15"><enum>(3)</enum><header>One-percent
reduction limitation</header><text>No program shall be subject to a spending
reduction of more than one percent of its budgetary resources.</text>
</paragraph><paragraph id="IDc1c0a7e30a5740188b3745c32820ae62"><enum>(4)</enum><header>Calculation of
spending reduction</header><text>The percentage required to produce a spending
reduction, as ordered by a spending reduction order, shall be calculated by OMB
by adding all budgetary resources of the Government, and reducing that amount
by an amount sufficient to reduce the total amount of outlays of the Government
to equal, or lower, a level of outlays than the amount set forth in the
guideline period.</text>
</paragraph><paragraph id="ID221c0b3572ed4c3c82f60cc28e3de02d"><enum>(5)</enum><header>Application</header><text>Once
issued, a spending reduction shall be applied to nonexempt programs as
follows:</text>
<subparagraph id="IDf58bdb8f462944abb550de30fa57525a"><enum>(A)</enum><text>Budgetary
resources subject to a spending reduction to any non-defense discretionary
account shall be permanently canceled.</text>
</subparagraph><subparagraph id="ID274057cf76a74a6296fdb21b1ed4a06f"><enum>(B)</enum><text>The same
percentage spending reduction 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 delineated in the most recently submitted President's
budget).</text>
</subparagraph><subparagraph id="ID41a6ca10ece7422ca517b7342763f64e"><enum>(C)</enum><text>Administrative
regulations implementing a spending reduction shall be made within 120 days of
the issue of a spending reduction order.</text>
</subparagraph></paragraph><paragraph id="IDeb364bc9c6bb4a24b9ab96d4425551a7"><enum>(6)</enum><header>OASDI special
procedures</header><text>If the OASDI Trust Funds are subject to sequestration,
then payments from such Trust Funds shall be treated the same as other
programs, except—</text>
<subparagraph id="ID633067c0813a48dfb44f33a064d02fc1"><enum>(A)</enum><text>reductions from
such Trust Funds shall not exceed one percent of the 75-year unfunded liability
set forth in the most current Social Security Trustees Report;</text>
</subparagraph><subparagraph id="ID334d2472c6f942319757bd2d6e430215"><enum>(B)</enum><text>reduction in
individual benefits shall be implemented by increasing the Normal Retirement
Age by an amount certified by the Social Security Office of the Chief
Actuary;</text>
</subparagraph><subparagraph id="ID8c93e0f795f2496199da387b07746afc"><enum>(C)</enum><text>the increase in
the Normal Retirement Age shall not be applied to any beneficiary born in a
year 55 years or before—</text>
<clause id="ID0bd69cd617db424f9e9e1e11cc2679a3"><enum>(i)</enum><text>the year of the
enactment of the Economic Disaster Prevention Act of 2010; or</text>
</clause><clause id="ID9e0d6a8e688d45fe9947c094267cca94"><enum>(ii)</enum><text>the year in
which the final spending sequestration report is issued; and</text>
</clause></subparagraph><subparagraph id="ID8b965f0513374a608fd3fcbb85569c9d"><enum>(D)</enum><text>no change in the
Normal Retirement Age shall be made before it is fully phased-in under the
Social Security Act as in effect before the date of enactment of the Economic
Disaster Prevention Act of 2010.</text>
</subparagraph></paragraph></subsection><subsection id="ID8f94a0345c3b47f09dcddf255e4d5d95"><enum>(d)</enum><header>Non-Defense
discretionary spending sequestration</header>
<paragraph id="ID19e30fa304f149d9a15556d89669c638"><enum>(1)</enum><header>Eliminating a
breach</header><text>Each nonexempt account shall be reduced by an amount of
budget authority calculated by multiplying the baseline level of budgetary
resources subject to sequestration in that account at that time by the uniform
percentage necessary to eliminate a breach by—</text>
<subparagraph id="IDaec3c0fdf9804237b85c4e9fd4908db4"><enum>(A)</enum><text>first,
calculating the uniform percentage necessary to eliminate a breach in new
budget authority, if any; and</text>
</subparagraph><subparagraph id="ID4bb4edc038704f81ac6da0606f27a242"><enum>(B)</enum><text>second, if any
breach in outlays remains, increasing the uniform percentage to a level
sufficient to eliminate that breach.</text>
</subparagraph></paragraph><paragraph id="ID9c76815817284e06b90a5a22f1056cf4"><enum>(2)</enum><header>Emergency
spending above the reserve fund</header><text>An amount of budget authority and
the outlays flowing therefrom designated in statute as an emergency that is
above level in the emergency reserve fund as calculated in section 317(b) of
the Congressional Budget Act of 1974 shall count toward the non-defense
discretionary spending limits.</text>
</paragraph><paragraph id="IDc3fdaf9c2c5747119efcde9e3eb0888d"><enum>(3)</enum><header>Part-year
appropriations</header><text>If, on the date specified in paragraph (1), 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 (2) shall be subtracted from—</text>
<subparagraph id="idE5E56848E73E4BFC96BA3D696CE183D0"><enum>(A)</enum><text>the annualized
amount otherwise available by law in that account under that or a subsequent
part-year appropriation; and</text>
</subparagraph><subparagraph id="id3117FEA8CAF54EF8AB964C3C8B48B699"><enum>(B)</enum><text>when a full-year
appropriation for that account is enacted, from the amount otherwise provided
by the full year appropriation.</text>
</subparagraph></paragraph><paragraph id="ID9ef84d4770764f7db6f0a1eadcf40867"><enum>(4)</enum><header>Look-back</header><text>If,
after June 30, an appropriation for the fiscal year in progress is enacted that
causes a breach for that year, the non-defense discretionary spending limits
for the next fiscal year shall be reduced by the amount of the breach.</text>
</paragraph><paragraph id="ID65b4d5a200d141f59c9c4601ca9a7633"><enum>(5)</enum><header>Within-session
sequestration</header><text>If an appropriation for a fiscal year in progress
is enacted (after Congress adjourns to end the session for that budget year and
before July 1 of that fiscal year) that causes a breach for that year (after
taking into account any prior sequestration of amounts), 15 days later there
shall be a sequestration to eliminate that breach following the procedures set
forth in paragraphs (2) through (3).</text>
</paragraph><paragraph id="ID447825d745e04811abca8b46fd29cb92"><enum>(6)</enum><header>Estimates</header>
<subparagraph id="ID718e9765264b46ffad89cb7790697f98"><enum>(A)</enum><header>CBO
estimates</header><text>As soon as practicable after Congress completes action
on any non-defense discretionary appropriation, CBO, after consultation with
the Committees on the Budget of the House of Representatives and the Senate,
shall provide OMB with an estimate of the amount of non-defense discretionary
new budget authority and outlays for the current year (if any) and the budget
year provided by that legislation.</text>
</subparagraph><subparagraph id="ID584af75ac742456380426aca91651af8"><enum>(B)</enum><header>OMB
estimates</header><text>Not later than 7 calendar days (excluding Saturdays,
Sundays, and legal holidays) after the date of enactment of any non-defense
discretionary appropriation, OMB shall transmit a report to the House of
Representatives and to the Senate containing the CBO estimate of that
legislation, an OMB estimate of the amount of non-defense discretionary new
budget authority and outlays for the current year (if any) and the budget year
provided by that legislation, and an explanation of any difference between the
two estimates.</text>
</subparagraph><subparagraph id="ID60975c5963854c21b9cd50d9309b6193"><enum>(C)</enum><header>Explanation of
differences between omb and omb estimates</header><text>If OMB determines that
there is a significant difference between OMB and CBO reports prepared pursuant
to subparagraph (A) and (B), OMB shall consult with the Committees on the
Budget of the House of Representatives and the Senate regarding that difference
and that consultation shall include, to extent practicable, written
communication to those committees that affords such committees the opportunity
to comment before the issuance of the report.</text>
</subparagraph><subparagraph id="IDd44f986d7e3d4d00bb39500839aaedad"><enum>(D)</enum><header>Assumptions and
guidelines</header><text>OMB estimates under this paragraph shall be made using
current economic and technical assumptions. OMB shall use the OMB estimates
transmitted to Congress under this paragraph. OMB and CBO shall prepare
estimates under this paragraph in conformance with scorekeeping guidelines
determined after consultation among the House of Representatives and Senate
Committees on the Budget, CBO, and OMB.</text>
</subparagraph><subparagraph id="ID3813850f06a945679c3a0de76abfd632"><enum>(E)</enum><header>Annual
appropriations</header><text>For purposes of this paragraph, amounts provided
by annual appropriations shall include any new budget authority and outlays for
the current year (if any) and the budget year in accounts for which funding is
provided in that legislation that result from previously enacted
legislation.</text>
</subparagraph></paragraph><paragraph id="IDdab642882ba047a0ac645413b67aae9f"><enum>(7)</enum><header>Non-defense
discretionary sequestration limitation</header><text>If appropriations for a
fiscal year do not require a sequester pursuant to the non-defense
discretionary spending limits set forth in this Act, non-defense discretionary
accounts shall not be subject to sequestration under section
252A.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID3a21804fce0844829a5b703d10199666"><enum>(b)</enum><header>Technical and
conforming amendments</header>
<paragraph id="idF9DA19C1F47047A586B112E2489A340E"><enum>(1)</enum><header>Repeals</header><text>Section
255 of the Balanced Budget and Emergency Deficit Control Act of 1985 is
repealed.</text>
</paragraph><paragraph id="IDf9adb92165794d759b11aa4d1b0c5c46"><enum>(2)</enum><header>Conforming
amendment</header><text>The item relating to section 256 in the table of
contents set forth in section 250(a) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended to read as follows:</text>
<quoted-block id="idfd6dae63-5485-458b-b788-95e17f536811" style="OLC">
<toc>
<toc-entry idref="ID9ca509b91ce44db8b7c3967be8850f68" level="section">Sec. 256. Spending reduction
order.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle><enum>II</enum><header>Prohibition on
new direct spending programs</header>
<section id="ID9382ec47268847d18e7f0d671bc83985"><enum>201.</enum><header>Prohibition on
new direct spending programs</header>
<subsection id="id5C53BBA49AE94FB7B0912FA0852CE038"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">It shall not be in
order in the Senate or the House of Representatives to consider any bill,
resolution, amendment, motion, conference report, or other provision that
increases the level of direct spending for an existing program or creates new
direct spending unless the provision provides that the increased or new direct
spending expires 10 years after the effective date of such spending.</text>
</subsection><subsection id="ID7af054f9365a46b48ddf14791280ff18"><enum>(b)</enum><header>Waiver,
suspension, and appeals</header>
<paragraph id="IDcea50b9a9343412ea065ed2eefbde0fb"><enum>(1)</enum><header>In the
Senate</header>
<subparagraph id="idDA495AB79D5C44A1B53A9D0E5A7FAF1C"><enum>(A)</enum><header>Waiver and
suspension</header><text>The provisions of this section may be waived or
suspended in the Senate only by the affirmative vote of three-fifths of the
Members, duly chosen and sworn.</text>
</subparagraph><subparagraph id="idC90D138F3488493BB14167872E551BA4"><enum>(B)</enum><header>Appeals</header><text>Appeals
in the Senate from the decisions of the Chair relating to any provision of this
section shall be limited to 1 hour, to be equally divided between, and
controlled by, the appellant and the manager of the bill or joint resolution,
as the case may be. An affirmative vote of three-fifths of the Members of the
Senate, duly chosen and sworn, shall be required to sustain an appeal of the
ruling of the Chair on a point of order raised under this section.</text>
</subparagraph></paragraph><paragraph id="IDe385b84897ee41699482e842668a2931"><enum>(2)</enum><header>In the House of
Representatives</header><text>The provisions of this section may be waived or
suspended in the House of Representatives:</text>
<subparagraph id="IDd621550339ce46fea67ee9dc72bdc0b6"><enum>(A)</enum><text>Only by a rule or
order proposing only to waive such provisions by an affirmative vote of
two-thirds of the Members, duly chosen and sworn.</text>
</subparagraph><subparagraph id="IDe56c2a66fa1e4c92aff729e6f06f3312"><enum>(B)</enum><text>It shall not be
in order to consider a rule or order that waives the application of
subparagraph (A).</text>
</subparagraph><subparagraph id="IDcd9139bc0b2f4fe1b0a298a35d9e3421"><enum>(C)</enum><text>It shall not be
in order for the Speaker to entertain a motion to suspend the application of
this section under clause 1 of rule XV of the Rules of the House of
Representatives.</text>
</subparagraph></paragraph></subsection></section>