[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3580 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3580

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 
      to provide for long-term budgeting, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 7, 2011

 Mr. Mulvaney (for himself, Mr. Ryan of Wisconsin, Mr. Hensarling, Mr. 
 Rokita, Mr. Stutzman, Mr. Chaffetz, and Mr. Lankford) introduced the 
following bill; which was referred to the Committee on the Budget, and 
 in addition to the Committees on Rules, Agriculture, Ways and Means, 
 Energy and Commerce, and Education and the Workforce, 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 amend the Balanced Budget and Emergency Deficit Control Act of 1985 
      to provide for long-term budgeting, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Balancing Our 
Obligations for the Long-Term Act of 2011''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Long-term direct spending limits.
Sec. 3. Total spending limits.
Sec. 4. Reports and orders.
Sec. 5. Exempt programs and activities; special sequestration rules.
Sec. 6. Long-term baseline projections.
Sec. 7. Five-year fiscal sustainability review.
Sec. 8. Concurrent resolutions on the budget to include long-term 
                            budgeting.
Sec. 9. Long-term reconciliation.
Sec. 10. Long-term spending increase point of order.
Sec. 11. CBO and OMB projections.
Sec. 12. Long-term analysis by Congressional Budget Office of 
                            legislation.
Sec. 13. Long-term budgeting reflected in President's budget 
                            submissions.
Sec. 14. GAO and OMB statements of the Federal Government's financial 
                            condition.
Sec. 15. Medicare trigger.

SEC. 2. LONG-TERM DIRECT SPENDING LIMITS.

    (a) Control of Direct Spending.--Section 252 of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended to read as 
follows:

``SEC. 252. DIRECT SPENDING LIMITS.

    ``(a) Direct Spending Limits.--The total level of direct spending 
as a percentage of current gross domestic product of the United States 
for each fiscal year set forth below is as follows:
    ``(1) For fiscal year 2030--
            ``(A) for Medicare, 4.3 percent;
            ``(B) for Medicaid and other health-related spending, 1.5 
        percent; and
            ``(C) for all other direct spending, 1.0 percent.
    ``(2) For fiscal year 2040--
            ``(A) for Medicare, 5.0 percent;
            ``(B) for Medicaid and other health-related spending, 1.3 
        percent; and
            ``(C) for all other direct spending, 1.2 percent.
    ``(3) For fiscal year 2050--
            ``(A) for Medicare, 4.8 percent;
            ``(B) for Medicaid and other health-related spending, 1.0 
        percent; and
            ``(C) for all other direct spending, 0.8 percent.
    ``(b) Sequestration.--(1) Within 15 calendar days after Congress 
adjourns to end a session and on the same day as a sequestration under 
section 252A, but after any sequestration required by that section, 
there shall be a sequestration to eliminate any direct spending in 
excess of the direct spending limits set forth in subsection (a) for 
the budget year.
    ``(2) The amount required to be sequestered in a fiscal year under 
paragraph (1)--
            ``(A) for Medicare spending shall be obtained from non-
        exempt direct spending accounts for Medicare;
            ``(B) for Medicaid and other health-related spending shall 
        be obtained from non-exempt direct spending accounts for 
        Medicaid and other health-related spending; and
            ``(C) for all other direct spending shall be obtained from 
        non-exempt direct spending accounts.
    ``(3) Each account referred to in subparagraph (A), (B), or (C) of 
paragraph (2) shall be reduced by the uniform percentage necessary to 
reduce any excess direct spending in accounts in that subparagraph to 
the applicable level set forth in subsection (a) for the budget year.
    ``(c) Scorekeeping Guidelines.--OMB and CBO, after consultation 
with each other and the Committees on the Budget of the House of 
Representatives and the Senate, shall--
            ``(1) determine common scorekeeping guidelines; and
            ``(2) in conformance with such guidelines, prepare 
        estimates under this section''.
    (b) Definitions.--Section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by adding at the end 
the following new paragraphs:
            ``(22) The term `Medicare' means programs within budget 
        function 570.
            ``(23) The term `Medicaid and other health-related 
        spending' means programs within budget function 550.
            ``(24) The term `other direct spending' means direct 
        spending programs other than those within budget functions 550 
        and 570, excluding Social Security and net interest.''.
    (c) Conforming Amendment.--The item relating to section 252 in the 
table of contents set forth in 250(a) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended to read as follows:

``Sec. 252. Direct spending limits.''.

SEC. 3. TOTAL SPENDING LIMITS.

    (a) Total Spending Limits.--The Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding after section 252 the 
following new section:

``SEC. 252A. TOTAL SPENDING LIMITS.

    ``(a) Sequestration.--(1) Within 15 calendar days after Congress 
adjourns to end a session and on the same day as a spending reduction 
ordered under section 252, but after any spending reduction required by 
that section, there shall be a sequestration of all non-exempt direct 
spending accounts and discretionary accounts to eliminate any total 
spending in excess of the total spending limits set forth in subsection 
(c) for the budget year.
    ``(2) Each account referred to in paragraph (1) shall be reduced by 
the uniform percentage necessary to reduce total spending to the 
applicable level set forth in subsection (c) for the budget year.
    ``(b) Total Spending Limits.--
            ``(1) fiscal year 2030: 20 percent;
            ``(2) fiscal year 2040: 20 percent; and
            ``(3) fiscal year 2050: 20 percent;
of the current projected gross domestic product of the United States 
for the budget year.''.
    (b) Definitions.--Section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (as amended by section 2) is 
further amended by adding at the end the following new paragraph:
            ``(25) The term `total spending' means all outlays of the 
        Government, including those from off-budget entities and budget 
        authority and outlays flowing therefrom.''.
    (c) Conforming Amendment.--The table of contents set forth in 
250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 
is amended by inserting after the item relating to section 252 the 
following new item:

``Sec. 252A. Total spending limits.''.

SEC. 4. REPORTS AND ORDERS.

    Section 254 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) in subsection (c), by repealing paragraph (1) and 
        inserting the following new paragraph:
            ``(1) Reporting requirement.--On the dates specified in 
        subsection (a), OMB and CBO shall issue a preview report 
        regarding discretionary, direct, total, and deficit 
        sequestration based on laws enacted through those dates.'';
            (2) in subsection (c), by repealing paragraph (3) and 
        inserting the following new paragraph:
            ``(3) Direct spending sequestration reports.--The preview 
        report shall set forth for the budget year estimates for each 
        of the following:
                    ``(A) The amount of any excess direct spending for 
                Medicare, for Medicaid and other health-related 
                spending, and for all other direct spending.
                    ``(B) The sequestration percentage or percentages 
                necessary to reduce direct spending in accounts for 
                Medicare, for Medicaid and other health-related 
                spending, and for all other direct spending, as 
                applicable.
                    ``(C) For a budget year, the current projected 
                gross domestic product of the United States for that 
                year.'';
            (3) in subsection (c), by repealing paragraph (4), by 
        redesignating paragraph (5) as paragraph (6), and by inserting 
        the following new paragraphs:
            ``(4) Total spending sequestration reports.--The preview 
        report shall set forth for the budget years 2030, 2040, and 
        2050 estimates for each of the following:
                    ``(A) The amount of any excess total spending.
                    ``(B) The sequestration percentage necessary to 
                eliminate any excess total spending.
            ``(5) Deficit sequestration reports.--The preview report 
        shall set forth for the budget year estimates for each of the 
        following:
                    ``(A) The amount of the current gross domestic 
                product of the United States.
                    ``(B) The estimated deficit.
                    ``(C) The amount by which the estimated deficit 
                exceeds the deficit limit.
                    ``(D) The sequestration percentage necessary to 
                achieve the required reduction in spending to comply 
                with the applicable deficit limit set forth in section 
                253(c).'';
            (4) in subsection (f)(3), by amending the side heading and 
        the first sentence to read as follows: ``Direct, total, and 
        deficit sequestration reports.--The final report shall contain 
        all the information required in the direct, total, and deficit 
        sequestration preview reports.'';
            (5) in subsection (f), by amending paragraph (4) to read as 
        follows:
            ``(4) Explanation of differences.--The OMB report shall 
        explain any material differences between OMB and CBO estimates 
        in any comparable reports.''; and
            (6) in subsection (g), by striking ``(f)(4)'' and inserting 
        ``(f)(5)''.

SEC. 5. EXEMPT PROGRAMS AND ACTIVITIES; SPECIAL SEQUESTRATION RULES.

    Sections 255 and 256 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 are amended to read as follows:

``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.

    ``(a) Exempt Programs and Activities.--The following shall be 
exempt from reduction under any order issued under this part:
            ``(1) Payments for net interest.
            ``(2) Benefits payable under the old-age, survivors, and 
        disability insurance program established under title II of the 
        Social Security Act.
            ``(3) Compensation, pensions, and benefits provided to 
        veterans defined as direct spending payable by the Department 
        of Veterans Affairs.
            ``(4) Obligated balances of budget authority carried over 
        from prior fiscal years.
            ``(5) Any obligations of the Federal Government required to 
        be paid under the United States Constitution or legally 
        contractual obligations.
            ``(6) Claims, Judgments, and Relief Acts (20-1895-0-1-808).
            ``(7) Intragovernmental transfers.
    ``(b) Optional Exemption of Military Personnel.--
            ``(1) In general.--The President may, with respect to any 
        military personnel account, exempt that account from 
        sequestration or provide for a lower uniform percentage 
        reduction than would otherwise apply.
            ``(2) Limitation.--The President may not use the authority 
        provided by paragraph (1) unless the President notifies the 
        Congress of the manner in which such authority will be 
        exercised on or before the date specified in section 254(a) for 
        the budget year.

``SEC. 256. GENERAL AND SPECIAL SEQUESTRATION RULES.

    ``(a) Limitations.--(1) No direct spending program that OMB 
estimates for the budget year is growing at a rate that exceeds the 
estimated rate of growth of the consumer price index for that year 
shall be subject to a spending reduction of more than four percent of 
its budgetary resources.
    ``(2) No direct spending program that OMB estimates for the budget 
year is growing at a rate that is equal to or less than the consumer 
price index for that year shall be subject to a spending reduction.
    ``(b) Student Loans.--For all student loans under part B or D of 
title IV of the Higher Education Act of 1965 made during the period 
when a sequestration order under section 254 is in effect as required 
by section 252, 252A, or 253, origination fees under sections 438(c)(2) 
and (6) and 455(c) and loan processing and issuance fees under section 
428(f)(1)(A)(ii) of that Act shall each be increased by the uniform 
percentage specified in that sequestration order, and, for student 
loans originated during the period of the sequestration accruing during 
the period of the sequestration shall be reduced by the uniform 
percentage specified in that sequestration order.
    ``(c) Special Rules for Medicare Program.--
            ``(1) Calculation of reduction in payment amounts.--To 
        achieve the total percentage reduction in those programs 
        required by section 252, 252A, or 253, subject to paragraph 
        (2), and notwithstanding section 710 of the Social Security 
        Act, OMB shall determine, and the applicable Presidential order 
        under section 254 shall implement, the percentage reduction 
        that shall apply, with respect to the health insurance programs 
        under title XVIII of the Social Security Act--
                    ``(A) in the case of parts A and B of such title, 
                to individual payments for services furnished during 
                the one-year period beginning on the first day of the 
                first month beginning after the date the order is 
                issued (or, if later, the date specified in paragraph 
                (4)); and
                    ``(B) in the case of parts C and D, to monthly 
                payments under contracts under such parts for the same 
                one-year period;
        such that the reduction made in payments under that order shall 
        achieve the required total percentage reduction in those 
        payments for that period.
            ``(2) Uniform reduction rate; maximum permissible 
        reduction.--Reductions in payments for programs and activities 
        under such title XVIII pursuant to a sequestration order under 
        section 254 shall be at a uniform rate across all such programs 
        and activities subject to such order.
            ``(3) Timing of application of reductions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if a reduction is made under 
                paragraph (1) in payment amounts pursuant to a 
                sequestration order, the reduction shall be applied to 
                payment for services furnished during the effective 
                period 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 under paragraph (1) 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 during the effective period 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 during the effective 
                period of the order.
            ``(4) Timing of subsequent sequestration order.--A 
        sequestration order required by section 252, 252A, or 253 with 
        respect to programs under such title XVIII shall not take 
        effect until the first month beginning after the end of the 
        effective period of any prior sequestration order with respect 
        to such programs, as determined in accordance with paragraph 
        (1).
            ``(5) No increase in beneficiary charges in assignment-
        related cases.--If a reduction in payment amounts is made under 
        paragraph (1) 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.
            ``(6) Sequestration disregarded in computing payment 
        amounts.--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, for purposes of 
        computing any adjustments to payment rates under such title 
        XVIII, specifically including--
                    ``(A) the part C growth percentage under section 
                1853(c)(6);
                    ``(B) the part D annual growth rate under section 
                1860D-2(b)(6); and
                    ``(C) application of risk corridors to part D 
                payment rates under section 1860D-15(e).
    ``(d) Effects of Sequestration.--The effects of sequestration shall 
be as follows:
            ``(1) Budgetary resources sequestered from any account 
        shall be permanently cancelled, except as provided in paragraph 
        (6).
            ``(2) 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 
        delineated in the most recently submitted President's budget).
            ``(3) Administrative regulations or similar actions 
        implementing a sequestration shall be made within 120 days of 
        the sequestration order. To the extent that formula allocations 
        differ at different levels of budgetary resources within an 
        account, program, project, or activity, the sequestration shall 
        be interpreted as producing a lower total appropriation, with 
        the remaining amount of the appropriation being obligated in a 
        manner consistent with program allocation formulas in 
        substantive law.
            ``(4) Except as otherwise provided, obligations in 
        sequestered accounts shall be reduced only in the fiscal year 
        in which a sequester occurs.
            ``(5) If an automatic spending increase is sequestered, the 
        increase (in the applicable index) that was disregarded as a 
        result of that sequestration shall not be taken into account in 
        any subsequent fiscal year.
            ``(6) Budgetary resources sequestered in revolving, trust, 
        and special fund accounts and offsetting collections 
        sequestered in appropriation accounts shall not be available 
        for obligation during the fiscal year in which the 
        sequestration occurs, but shall be available in subsequent 
        years to the extent otherwise provided in law.
    ``(e) Commodity Credit Corporation.--
            ``(1) Powers and authorities of the commodity credit 
        corporation.--This title shall not restrict the Commodity 
        Credit Corporation in the discharge of its authority and 
        responsibility as a corporation to buy and sell commodities in 
        world trade, to use the proceeds as a revolving fund to meet 
        other obligations and otherwise operate as a corporation, the 
        purpose for which it was created.
            ``(2) Reduction in payments made under contracts.--(A) Loan 
        eligibility under any contract entered into with a person by 
        the Commodity Credit Corporation prior to the time an order has 
        been issued under section 254 shall not be reduced by an order 
        subsequently issued. Subject to subparagraph (B), after an 
        order is issued under such section for a fiscal year, any cash 
        payments for loans or loan deficiencies made by the Commodity 
        Credit Corporation shall be subject to reduction under the 
        order.
            ``(B) Each loan contract entered into with producers or 
        producer cooperatives with respect to a particular crop of a 
        commodity and subject to reduction under subparagraph (A) shall 
        be reduced in accordance with the same terms and conditions. If 
        some, but not all, contracts applicable to a crop of a 
        commodity have been entered into prior to the issuance of an 
        order under section 254, the order shall provide that the 
        necessary reduction in payments under contracts applicable to 
        the commodity be uniformly applied to all contracts for the 
        next succeeding crop of the commodity, under the authority 
        provided in paragraph (3).
            ``(3) Delayed reduction in outlays permissible.--
        Notwithstanding any other provision of this title, if an order 
        under section 254 is issued with respect to a fiscal year, any 
        reduction under the order applicable to contracts described in 
        paragraph (1) may provide for reductions in outlays for the 
        account involved to occur in the fiscal year following the 
        fiscal year to which the order applies.
            ``(4) Uniform percentage rate of reduction and other 
        limitations.--All reductions described in paragraph (2) which 
        are required to be made in connection with an order issued 
        under section 254 with respect to a fiscal year shall be made 
        so as to ensure that outlays for each program, project, 
        activity, or account involved are reduced by a percentage rate 
        that is uniform for all such programs, projects, activities, 
        and accounts, and may not be made so as to achieve a percentage 
        rate of reduction in any such item exceeding the rate specified 
        in the order.
            ``(5) Dairy program.--Notwithstanding any other provision 
        of this subsection, 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. That price reduction (measured in cents per hundred weight 
        of milk marketed) shall occur under section 201(d)(2)(A) of the 
        Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin 
        on the day any sequestration order is issued under section 254, 
        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 for the purchase 
        of milk or the products of milk under this subsection during 
        the applicable fiscal year.
            ``(6) Certain authority not to be limited.--Nothing in this 
        joint resolution shall limit or reduce, in any way, any 
        appropriation that provides the Commodity Credit Corporation 
        with budget authority to cover the Corporation's net realized 
        losses.''.

SEC. 6. LONG-TERM BASELINE PROJECTIONS.

    Section 257(a) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) by inserting ``(1) Baseline for the budget year.--'' 
        before ``For any budget year'' and by moving the text 2 ems to 
        the right; and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Long-term estimates.--For the three ten fiscal-year 
        periods beginning after the last such outyear based on enacted 
        law, the baseline refers to an estimate of current year levels 
        of budget authority, outlays, or receipts for--
            ``(A) discretionary spending;
            ``(B) Medicare;
            ``(C) Medicaid and other health-related spending;
            ``(D) other direct spending;
            ``(E) social security;
            ``(F) other categories, as appropriate; and
            ``(G) net interest,
        as a percentage of the current gross domestic product of the 
        United States.''.

SEC. 7. FIVE-YEAR FISCAL SUSTAINABILITY REVIEW.

    (a) Five-Year Fiscal Sustainability Review.--Title III of the 
Congressional Budget Act of 1974 is amended by adding at the end the 
following new section:

                ``five-year fiscal sustainability review

    ``Sec. 316.  (a) Congressional Spending Review Report.--Beginning 
for fiscal year 2018 and every fifth year thereafter, not later than 45 
calendar days after the date of the transmittal of the report referred 
to in subsection 308(e), the Committees on the Budget of the House of 
Representatives and the Senate shall issue, and have printed in the 
Congressional Record, an assessment of such report.
    ``(b) Committee Recommendations.--Not later than 30 calendar days 
after the date of the report of the review referred to in subsection 
(c), the committees of the House of Representatives and the Senate 
shall submit to the Committees on the Budget of the House of 
Representatives and Senate, as applicable, recommendations, if any, 
such committees deem appropriate in response to the Spending Review 
Report issued pursuant to subsection (c).
    ``(c) Expedited Consideration of Spending Review Legislation.--
            ``(1) Consideration in the house of representatives.--
                    ``(A) Introduction of spending review 
                legislation.--(i) If the report referred to in section 
                308(e) indicates that the OASDI Trust Funds are not 
                solvent, or that Medicare, Medicaid and other health-
                related spending, or other direct spending programs are 
                not sustainable, or total spending exceeds the limits 
                set forth in section 252 or 252A of the Balanced Budget 
                and Emergency Deficit Control Act of 1985 for any year 
                within the period referred to in such report, then not 
                later than 30 calendar days after the transmittal of 
                the report referred to in subsection (a), if any, the 
                majority leader and minority leader of the House of 
                Representatives shall each introduce legislation to 
                make such programs sustainable or solvent, as 
                applicable.
                    ``(ii) If spending review legislation is not 
                introduced pursuant to this subparagraph--
                            ``(I) by the majority leader, the chairman 
                        of the Committee on the Budget shall introduce 
                        spending review legislation; or
                            ``(II) by the minority leader, the ranking 
                        member of the Committee on the Budget shall 
                        introduce spending review legislation,
                not later than 45 calendar days after the transmittal 
                of the report referred to in subsection (a) sufficient 
                to achieve the same spending levels.
                    ``(iii) Spending review legislation shall be 
                referred to the Committee on the Budget of the House of 
                Representatives.
                    ``(iv) Spending review legislation introduced 
                pursuant to this section shall cause total spending to 
                be reduced by an amount equal or greater than the 
                amount of the breach of the limits set forth in section 
                252 or 252A of the Balanced Budget and Emergency 
                Deficit Control Act of 1985, and may cause the OASDI 
                Trust Funds to achieve solvency, and may cause 
                Medicare, Medicaid and other health-related spending, 
                and other direct spending programs to achieve 
                sustainability.
                    ``(B) Referral and reporting.--The Committee on the 
                Budget of the House of Representatives shall report 
                spending review legislation to the House of 
                Representatives not later than the seventh legislative 
                day after the date of introduction of the legislation 
                referred to in subparagraph (A). If such committee 
                fails to report the spending review legislation within 
                that period or the House of Representatives has adopted 
                a concurrent resolution providing for adjournment sine 
                die at the end of a Congress, such committee shall be 
                automatically discharged from further consideration of 
                the spending review legislation and it shall be placed 
                on the appropriate calendar.
                    ``(C) Proceeding to consideration.--After spending 
                review legislation is reported by or discharged from 
                the Committee on the Budget or the House of 
                Representatives has adopted a concurrent resolution 
                providing for adjournment sine die at the end of a 
                Congress, it shall be in order to move to proceed to 
                consider the spending review legislation in the House 
                of Representatives. Such a motion shall be in order in 
                the legislative schedule within two legislative days 
                after the day on which the proponent announces his 
                intention to offer the motion. Such a motion shall not 
                be in order after the House of Representatives has 
                disposed of a motion to proceed with respect to that 
                special message. 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 disposed of shall not be in 
                order.
                    ``(D) Consideration.--The spending review 
                legislation shall be considered as read. All points of 
                order against spending review legislation and against 
                its consideration are waived. The previous question 
                shall be considered as ordered on a spending review 
                legislation to its passage without intervening motion 
                except five hours of debate equally divided and 
                controlled by the proponent and an opponent and one 
                motion to limit debate on the spending review 
                legislation. A motion to reconsider the vote on passage 
                of the spending review legislation shall not be in 
                order.
                    ``(E) Senate spending review legislation.--Spending 
                review legislation received from the Senate shall not 
                be referred to any committee.
            ``(2) Consideration in the senate.--
                    ``(A) Motion to proceed to consideration.--A motion 
                to proceed to the consideration of spending review 
                legislation under this subsection in the Senate shall 
                not be debatable. It shall not be in order to move to 
                reconsider the vote by which the motion to proceed is 
                agreed to or disagreed to.
                    ``(B) Limits on debate.--Debate in the Senate on 
                spending review legislation under this subsection, and 
                all debatable motions and appeals in connection 
                therewith (including debate pursuant to subparagraph 
                (D)), shall not exceed 10 hours, equally divided and 
                controlled in the usual form.
                    ``(C) Appeals.--Debate in the Senate on any 
                debatable motion or appeal in connection with spending 
                review legislation under this subsection shall be 
                limited to not more than 1 hour, to be equally divided 
                and controlled in the usual form.
                    ``(D) Motion to limit debate.--A motion in the 
                Senate to further limit debate on spending review 
                legislation under this subsection is not debatable.
                    ``(E) Motion to recommit.--A motion to recommit 
                spending review legislation under this subsection is 
                not in order.
                    ``(F) Consideration of the house of representatives 
                spending review legislation.--(i) If the Senate has 
                received the House of Representatives companion 
                resolution to the spending review legislation 
                introduced in the Senate prior to the vote required 
                under paragraph (1)(C), then the Senate may consider, 
                and the vote under paragraph (1)(C) may occur on, the 
                House of Representatives companion resolution.
                    ``(ii) If the Senate votes, pursuant to paragraph 
                (1)(C), on the spending review legislation introduced 
                in the Senate, then immediately following that vote, or 
                upon receipt of the House of Representatives companion 
                resolution, the House of Representatives spending 
                review legislation shall be deemed to be considered, 
                read the third time, and the vote on passage of the 
                Senate resolution shall be considered to be the vote on 
                the spending review legislation received from the House 
                of Representatives.
            ``(3) Jurisdiction.--During consideration of spending 
        review legislation under this section, the Committees on the 
        Budget of the House of Representatives and Senate shall have 
        jurisdiction over such legislation for all purposes of the 
        rules of either House.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding after the item relating to section 318 the 
following new item:

``Sec. 316. Five-year fiscal sustainability review.''.

SEC. 8. CONCURRENT RESOLUTIONS ON THE BUDGET TO INCLUDE LONG-TERM 
              BUDGETING.

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

SEC. 9. LONG-TERM RECONCILIATION.

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

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

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

              ``long-term spending increase point of order

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

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

SEC. 11. CBO AND OMB PROJECTIONS.

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

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

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

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

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

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

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

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

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

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

SEC. 15. MEDICARE TRIGGER.

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

``SEC. 805. DEDICATION OF SAVINGS.

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

``Sec. 805. Dedication of savings.''.
                                 <all>