[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 365 Enrolled Bill (ENR)]

        S.365

                      One Hundred Twelfth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
            the fifth day of January, two thousand and eleven


                                 An Act


 
                     To provide for budget control.

    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 ``Budget Control Act 
of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Severability.

           TITLE I--TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

Sec. 101. Enforcing discretionary spending limits.
Sec. 102. Definitions.
Sec. 103. Reports and orders.
Sec. 104. Expiration.
Sec. 105. Amendments to the Congressional Budget and Impoundment Control 
          Act of 1974.
Sec. 106. Senate budget enforcement.

             TITLE II--VOTE ON THE BALANCED BUDGET AMENDMENT

Sec. 201. Vote on the balanced budget amendment.
Sec. 202. Consideration by the other House.

               TITLE III--DEBT CEILING DISAPPROVAL PROCESS

Sec. 301. Debt ceiling disapproval process.
Sec. 302. Enforcement of budget goal.

          TITLE IV--JOINT SELECT COMMITTEE ON DEFICIT REDUCTION

Sec. 401. Establishment of Joint Select Committee.
Sec. 402. Expedited consideration of joint committee recommendations.
Sec. 403. Funding.
Sec. 404. Rulemaking.

          TITLE V--PELL GRANT AND STUDENT LOAN PROGRAM CHANGES

Sec. 501. Federal Pell grants.
Sec. 502. Termination of authority to make interest subsidized loans to 
          graduate and professional students.
Sec. 503. Termination of direct loan repayment incentives.
Sec. 504. Inapplicability of title IV negotiated rulemaking and master 
          calendar exception.
SEC. 2. SEVERABILITY.
    If any provision of this Act, or any application of such provision 
to any person or circumstance, is held to be unconstitutional, the 
remainder of this Act and the application of this Act to any other 
person or circumstance shall not be affected.

          TITLE I--TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

    SEC. 101. ENFORCING DISCRETIONARY SPENDING LIMITS.
    Section 251 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows:
    ``SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS.
    ``(a) Enforcement.--
        ``(1) Sequestration.--Within 15 calendar days after Congress 
    adjourns to end a session there shall be a sequestration to 
    eliminate a budget-year breach, if any, within any category.
        ``(2) Eliminating a breach.--Each non-exempt account within a 
    category shall be reduced by a dollar amount calculated by 
    multiplying the enacted level of sequestrable budgetary resources 
    in that account at that time by the uniform percentage necessary to 
    eliminate a breach within that category.
        ``(3) Military personnel.--If the President uses the authority 
    to exempt any personnel account from sequestration under section 
    255(f), each account within subfunctional category 051 (other than 
    those military personnel accounts for which the authority provided 
    under section 255(f) has been exercised) shall be further reduced 
    by a dollar amount calculated by multiplying the enacted level of 
    non-exempt budgetary resources in that account at that time by the 
    uniform percentage necessary to offset the total dollar amount by 
    which outlays are not reduced in military personnel accounts by 
    reason of the use of such authority.
        ``(4) Part-year appropriations.--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 
    paragraphs (2) and (3) shall be subtracted from--
            ``(A) the annualized amount otherwise available by law in 
        that account under that or a subsequent part-year 
        appropriation; and
            ``(B) when a full-year appropriation for that account is 
        enacted, from the amount otherwise provided by the full-year 
        appropriation for that account.
        ``(5) Look-back.--If, after June 30, an appropriation for the 
    fiscal year in progress is enacted that causes a breach within a 
    category for that year (after taking into account any sequestration 
    of amounts within that category), the discretionary spending limits 
    for that category for the next fiscal year shall be reduced by the 
    amount or amounts of that breach.
        ``(6) Within-session sequestration.--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 within a category for that year (after 
    taking into account any prior sequestration of amounts within that 
    category), 15 days later there shall be a sequestration to 
    eliminate that breach within that category following the procedures 
    set forth in paragraphs (2) through (4).
        ``(7) Estimates.--
            ``(A) CBO estimates.--As soon as practicable after Congress 
        completes action on any 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 discretionary new budget authority 
        and outlays for the current year, if any, and the budget year 
        provided by that legislation.
            ``(B) OMB estimates and explanation of differences.--Not 
        later than 7 calendar days (excluding Saturdays, Sundays, and 
        legal holidays) after the date of enactment of any 
        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 
        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 2 estimates. 
        If during the preparation of the report OMB determines that 
        there is a significant difference between OMB and CBO, 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 the extent practicable, 
        written communication to those committees that affords such 
        committees the opportunity to comment before the issuance of 
        the report.
            ``(C) Assumptions and guidelines.--OMB estimates under this 
        paragraph shall be made using current economic and technical 
        assumptions. OMB shall use the OMB estimates transmitted to the 
        Congress under this paragraph. OMB and CBO shall prepare 
        estimates under this paragraph in conformance with scorekeeping 
        guidelines determined after consultation among the Committees 
        on the Budget of the House of Representatives and the Senate, 
        CBO, and OMB.
            ``(D) Annual appropriations.--For purposes of this 
        paragraph, amounts provided by annual appropriations shall 
        include any discretionary appropriations 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.
    ``(b) Adjustments to Discretionary Spending Limits.--
        ``(1) Concepts and definitions.--When the President submits the 
    budget under section 1105 of title 31, United States Code, OMB 
    shall calculate and the budget shall include adjustments to 
    discretionary spending limits (and those limits as cumulatively 
    adjusted) for the budget year and each outyear to reflect changes 
    in concepts and definitions. Such changes shall equal the baseline 
    levels of new budget authority and outlays using up-to-date 
    concepts and definitions, minus those levels using the concepts and 
    definitions in effect before such changes. Such changes may only be 
    made after consultation with the Committees on Appropriations and 
    the Budget of the House of Representatives and the Senate, and that 
    consultation shall include written communication to such committees 
    that affords such committees the opportunity to comment before 
    official action is taken with respect to such changes.
        ``(2) Sequestration reports.--When OMB submits a sequestration 
    report under section 254(e), (f), or (g) for a fiscal year, OMB 
    shall calculate, and the sequestration report and subsequent 
    budgets submitted by the President under section 1105(a) of title 
    31, United States Code, shall include adjustments to discretionary 
    spending limits (and those limits as adjusted) for the fiscal year 
    and each succeeding year, as follows:
            ``(A) Emergency appropriations; overseas contingency 
        operations/global war on terrorism.--If, for any fiscal year, 
        appropriations for discretionary accounts are enacted that--
                ``(i) the Congress designates as emergency requirements 
            in statute on an account by account basis and the President 
            subsequently so designates, or
                ``(ii) the Congress designates for Overseas Contingency 
            Operations/Global War on Terrorism in statute on an account 
            by account basis and the President subsequently so 
            designates,
        the adjustment shall be the total of such appropriations in 
        discretionary accounts designated as emergency requirements or 
        for Overseas Contingency Operations/Global War on Terrorism, as 
        applicable.
            ``(B) Continuing disability reviews and redeterminations.--
        (i) If a bill or joint resolution making appropriations for a 
        fiscal year is enacted that specifies an amount for continuing 
        disability reviews under titles II and XVI of the Social 
        Security Act and for the cost associated with conducting 
        redeterminations of eligibility under title XVI of the Social 
        Security Act, then the adjustments for that fiscal year shall 
        be the additional new budget authority provided in that Act for 
        such expenses for that fiscal year, but shall not exceed--
                ``(I) for fiscal year 2012, $623,000,000 in additional 
            new budget authority;
                ``(II) for fiscal year 2013, $751,000,000 in additional 
            new budget authority;
                ``(III) for fiscal year 2014, $924,000,000 in 
            additional new budget authority;
                ``(IV) for fiscal year 2015, $1,123,000,000 in 
            additional new budget authority;
                ``(V) for fiscal year 2016, $1,166,000,000 in 
            additional new budget authority;
                ``(VI) for fiscal year 2017, $1,309,000,000 in 
            additional new budget authority;
                ``(VII) for fiscal year 2018, $1,309,000,000 in 
            additional new budget authority;
                ``(VIII) for fiscal year 2019, $1,309,000,000 in 
            additional new budget authority;
                ``(IX) for fiscal year 2020, $1,309,000,000 in 
            additional new budget authority; and
                ``(X) for fiscal year 2021, $1,309,000,000 in 
            additional new budget authority.
            ``(ii) As used in this subparagraph--
                ``(I) the term `continuing disability reviews' means 
            continuing disability reviews under sections 221(i) and 
            1614(a)(4) of the Social Security Act;
                ``(II) the term `redetermination' means redetermination 
            of eligibility under sections 1611(c)(1) and 1614(a)(3)(H) 
            of the Social Security Act; and
                ``(III) the term `additional new budget authority' 
            means the amount provided for a fiscal year, in excess of 
            $273,000,000, in an appropriation Act and specified to pay 
            for the costs of continuing disability reviews and 
            redeterminations under the heading `Limitation on 
            Administrative Expenses' for the Social Security 
            Administration.
            ``(C) Health care fraud and abuse control.--(i) If a bill 
        or joint resolution making appropriations for a fiscal year is 
        enacted that specifies an amount for the health care fraud 
        abuse control program at the Department of Health and Human 
        Services (75-8393-0-7-571), then the adjustments for that 
        fiscal year shall be the amount of additional new budget 
        authority provided in that Act for such program for that fiscal 
        year, but shall not exceed--
                ``(I) for fiscal year 2012, $270,000,000 in additional 
            new budget authority;
                ``(II) for fiscal year 2013, $299,000,000 in additional 
            new budget authority;
                ``(III) for fiscal year 2014, $329,000,000 in 
            additional new budget authority;
                ``(IV) for fiscal year 2015, $361,000,000 in additional 
            new budget authority;
                ``(V) for fiscal year 2016, $395,000,000 in additional 
            new budget authority;
                ``(VI) for fiscal year 2017, $414,000,000 in additional 
            new budget authority;
                ``(VII) for fiscal year 2018, $434,000,000 in 
            additional new budget authority;
                ``(VIII) for fiscal year 2019, $454,000,000 in 
            additional new budget authority;
                ``(IX) for fiscal year 2020, $475,000,000 in additional 
            new budget authority; and
                ``(X) for fiscal year 2021, $496,000,000 in additional 
            new budget authority.
            ``(ii) As used in this subparagraph, the term `additional 
        new budget authority' means the amount provided for a fiscal 
        year, in excess of $311,000,000, in an appropriation Act and 
        specified to pay for the costs of the health care fraud and 
        abuse control program.
            ``(D) Disaster funding.--
                ``(i) If, for fiscal years 2012 through 2021, 
            appropriations for discretionary accounts are enacted that 
            Congress designates as being for disaster relief in 
            statute, the adjustment for a fiscal year shall be the 
            total of such appropriations for the fiscal year in 
            discretionary accounts designated as being for disaster 
            relief, but not to exceed the total of--

                    ``(I) the average funding provided for disaster 
                relief over the previous 10 years, excluding the 
                highest and lowest years; and
                    ``(II) the amount, for years when the enacted new 
                discretionary budget authority designated as being for 
                disaster relief for the preceding fiscal year was less 
                than the average as calculated in subclause (I) for 
                that fiscal year, that is the difference between the 
                enacted amount and the allowable adjustment as 
                calculated in such subclause for that fiscal year.

                ``(ii) OMB shall report to the Committees on 
            Appropriations and Budget in each House the average 
            calculated pursuant to clause (i)(II), not later than 30 
            days after the date of the enactment of the Budget Control 
            Act of 2011.
                ``(iii) For the purposes of this subparagraph, the term 
            `disaster relief' means activities carried out pursuant to 
            a determination under section 102(2) of the Robert T. 
            Stafford Disaster Relief and Emergency Assistance Act (42 
            U.S.C. 5122(2)).
                ``(iv) Appropriations considered disaster relief under 
            this subparagraph in a fiscal year shall not be eligible 
            for adjustments under subparagraph (A) for the fiscal year.
    ``(c) Discretionary Spending Limit.--As used in this part, the term 
`discretionary spending limit' means--
        ``(1) with respect to fiscal year 2012--
            ``(A) for the security category, $684,000,000,000 in new 
        budget authority; and
            ``(B) for the nonsecurity category, $359,000,000,000 in new 
        budget authority;
        ``(2) with respect to fiscal year 2013--
            ``(A) for the security category, $686,000,000,000 in new 
        budget authority; and
            ``(B) for the nonsecurity category, $361,000,000,000 in new 
        budget authority;
        ``(3) with respect to fiscal year 2014, for the discretionary 
    category, $1,066,000,000,000 in new budget authority;
        ``(4) with respect to fiscal year 2015, for the discretionary 
    category, $1,086,000,000,000 in new budget authority;
        ``(5) with respect to fiscal year 2016, for the discretionary 
    category, $1,107,000,000,000 in new budget authority;
        ``(6) with respect to fiscal year 2017, for the discretionary 
    category, $1,131,000,000,000 in new budget authority;
        ``(7) with respect to fiscal year 2018, for the discretionary 
    category, $1,156,000,000,000 in new budget authority;
        ``(8) with respect to fiscal year 2019, for the discretionary 
    category, $1,182,000,000,000 in new budget authority;
        ``(9) with respect to fiscal year 2020, for the discretionary 
    category, $1,208,000,000,000 in new budget authority; and
        ``(10) with respect to fiscal year 2021, for the discretionary 
    category, $1,234,000,000,000 in new budget authority;
as adjusted in strict conformance with subsection (b).''.
    SEC. 102. DEFINITIONS.
    Section 250(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended as follows:
        (1) Strike paragraph (4) and insert the following new 
    paragraph:
        ``(4)(A) The term `nonsecurity category' means all 
    discretionary appropriations not included in the security category 
    defined in subparagraph (B).
        ``(B) The term `security category' includes discretionary 
    appropriations associated with agency budgets for the Department of 
    Defense, the Department of Homeland Security, the Department of 
    Veterans Affairs, the National Nuclear Security Administration, the 
    intelligence community management account (95-0401-0-1-054), and 
    all budget accounts in budget function 150 (international affairs).
        ``(C) The term `discretionary category' includes all 
    discretionary appropriations.''.
        (2) In paragraph (8)(C), strike ``the food stamp program'' and 
    insert ``the Supplemental Nutrition Assistance Program''.
        (3) Strike paragraph (14) and insert the following new 
    paragraph:
        ``(14) The term `outyear' means a fiscal year one or more years 
    after the budget year.''.
        (4) At the end, add the following new paragraphs:
        ``(20) The term `emergency' means a situation that--
            ``(A) requires new budget authority and outlays (or new 
        budget authority and the outlays flowing therefrom) for the 
        prevention or mitigation of, or response to, loss of life or 
        property, or a threat to national security; and
            ``(B) is unanticipated.
        ``(21) The term `unanticipated' means that the underlying 
    situation is--
            ``(A) sudden, which means quickly coming into being or not 
        building up over time;
            ``(B) urgent, which means a pressing and compelling need 
        requiring immediate action;
            ``(C) unforeseen, which means not predicted or anticipated 
        as an emerging need; and
            ``(D) temporary, which means not of a permanent 
        duration.''.
    SEC. 103. REPORTS AND ORDERS.
    Section 254 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended as follows:
        (1) In subsection (c)(2), strike ``2002'' and insert ``2021''.
        (2) At the end of subsection (e), insert ``This report shall 
    also contain a preview estimate of the adjustment for disaster 
    funding for the upcoming fiscal year.''.
        (3) In subsection (f)(2)(A), strike ``2002'' and insert 
    ``2021''; before the concluding period insert ``, including a final 
    estimate of the adjustment for disaster funding''.
    SEC. 104. EXPIRATION.
    (a) Repealer.--Section 275 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is repealed.
    (b) Conforming Change.--Sections 252(d)(1), 254(c), 254(f)(3), and 
254(i) of the Balanced Budget and Emergency Deficit Control Act of 1985 
shall not apply to the Congressional Budget Office.
    SEC. 105. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT 
      CONTROL ACT OF 1974.
    (a) Adjustments.--Section 314 of the Congressional Budget Act of 
1974 is amended as follows:
        (1) Strike subsection (a) and insert the following:
    ``(a) Adjustments.--After the reporting of a bill or joint 
resolution or the offering of an amendment thereto or the submission of 
a conference report thereon, the chairman of the Committee on the 
Budget of the House of Representatives or the Senate may make 
appropriate budgetary adjustments of new budget authority and the 
outlays flowing therefrom in the same amount as required by section 
251(b) of the Balanced Budget and Emergency Deficit Control Act of 
1985.''.
        (2) Strike subsections (b) and (e) and redesignate subsections 
    (c) and (d) as subsections (b) and (c), respectively.
        (3) At the end, add the following new subsections:
    ``(d) Emergencies in the House of Representatives.-- (1) In the 
House of Representatives, if a reported bill or joint resolution, or 
amendment thereto or conference report thereon, contains a provision 
providing new budget authority and outlays or reducing revenue, and a 
designation of such provision as an emergency requirement pursuant to 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act 
of 1985, the chair of the Committee on the Budget of the House of 
Representatives shall not count the budgetary effects of such provision 
for purposes of title III and title IV of the Congressional Budget Act 
of 1974 and the Rules of the House of Representatives.
    ``(2)(A) In the House of Representatives, if a reported bill or 
joint resolution, or amendment thereto or conference report thereon, 
contains a provision providing new budget authority and outlays or 
reducing revenue, and a designation of such provision as an emergency 
pursuant to paragraph (1), the chair of the Committee on the Budget 
shall not count the budgetary effects of such provision for purposes of 
this title and title IV and the Rules of the House of Representatives.
    ``(B) In the House of Representatives, a proposal to strike a 
designation under subparagraph (A) shall be excluded from an evaluation 
of budgetary effects for purposes of this title and title IV and the 
Rules of the House of Representatives.
    ``(C) An amendment offered under subparagraph (B) that also 
proposes to reduce each amount appropriated or otherwise made available 
by the pending measure that is not required to be appropriated or 
otherwise made available shall be in order at any point in the reading 
of the pending measure.
    ``(e) Enforcement of Discretionary Spending Caps.--It shall not be 
in order in the House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, motion, or conference report that 
would cause the discretionary spending limits as set forth in section 
251 of the Balanced Budget and Emergency Deficit Control Act to be 
exceeded.''.
    (b) Definitions.--Section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by adding at the end the 
following new paragraph:
        ``(11) The terms `emergency' and `unanticipated' have the 
    meanings given to such terms in section 250(c) of the Balanced 
    Budget and Emergency Deficit Control Act of 1985.''.
    (c) Appeals for Discretionary Caps.--Section 904(c)(2) of the 
Congressional Budget Act of 1974 is amended by striking ``and 312(c)'' 
and inserting ``312(c), and 314(e)''.
    SEC. 106. SENATE BUDGET ENFORCEMENT.
    (a) In General.--
        (1) For the purpose of enforcing the Congressional Budget Act 
    of 1974 through April 15, 2012, including section 300 of that Act, 
    and enforcing budgetary points of order in prior concurrent 
    resolutions on the budget, the allocations, aggregates, and levels 
    set in subsection (b)(1) shall apply in the Senate in the same 
    manner as for a concurrent resolution on the budget for fiscal year 
    2012 with appropriate budgetary levels for fiscal years 2011 and 
    2013 through 2021.
        (2) For the purpose of enforcing the Congressional Budget Act 
    of 1974 after April 15, 2012, including section 300 of that Act, 
    and enforcing budgetary points of order in prior concurrent 
    resolutions on the budget, the allocations, aggregates, and levels 
    set in subsection (b)(2) shall apply in the Senate in the same 
    manner as for a concurrent resolution on the budget for fiscal year 
    2013 with appropriate budgetary levels for fiscal years 2012 and 
    2014 through 2022.
    (b) Committee Allocations, Aggregates, and Levels.--
        (1) As soon as practicable after the date of enactment of this 
    section, the Chairman of the Committee on the Budget shall file--
            (A) for the Committee on Appropriations, committee 
        allocations for fiscal years 2011 and 2012 consistent with the 
        discretionary spending limits set forth in this Act for the 
        purpose of enforcing section 302 of the Congressional Budget 
        Act of 1974;
            (B) for all committees other than the Committee on 
        Appropriations, committee allocations for fiscal years 2011, 
        2012, 2012 through 2016, and 2012 through 2021 consistent with 
        the Congressional Budget Office's March 2011 baseline adjusted 
        to account for the budgetary effects of this Act and 
        legislation enacted prior to this Act but not included in the 
        Congressional Budget Office's March 2011 baseline, for the 
        purpose of enforcing section 302 of the Congressional Budget 
        Act of 1974;
            (C) aggregate spending levels for fiscal years 2011 and 
        2012 and aggregate revenue levels for fiscal years 2011, 2012, 
        2012 through 2016, 2012 through 2021 consistent with the 
        Congressional Budget Office's March 2011 baseline adjusted to 
        account for the budgetary effects of this Act and legislation 
        enacted prior to this Act but not included in the Congressional 
        Budget Office's March 2011 baseline, and the discretionary 
        spending limits set forth in this Act for the purpose of 
        enforcing section 311 of the Congressional Budget Act of 1974; 
        and
            (D) levels of Social Security revenues and outlays for 
        fiscal years 2011, 2012, 2012 through 2016, and 2012 through 
        2021 consistent with the Congressional Budget Office's March 
        2011 baseline adjusted to account for the budgetary effects of 
        this Act and legislation enacted prior to this Act but not 
        included in the Congressional Budget Office's March 2011 
        baseline, for the purpose of enforcing sections 302 and 311 of 
        the Congressional Budget Act of 1974.
        (2) Not later than April 15, 2012, the Chairman of the 
    Committee on the Budget shall file--
            (A) for the Committee on Appropriations, committee 
        allocations for fiscal years 2012 and 2013 consistent with the 
        discretionary spending limits set forth in this Act for the 
        purpose of enforcing section 302 of the Congressional Budget 
        Act of 1974;
            (B) for all committees other than the Committee on 
        Appropriations, committee allocations for fiscal years 2012, 
        2013, 2013 through 2017, and 2013 through 2022 consistent with 
        the Congressional Budget Office's March 2012 baseline for the 
        purpose of enforcing section 302 of the Congressional Budget 
        Act of 1974;
            (C) aggregate spending levels for fiscal years 2012 and 
        2013 and aggregate revenue levels for fiscal years 2012, 2013, 
        2013-2017, and 2013-2022 consistent with the Congressional 
        Budget Office's March 2012 baseline and the discretionary 
        spending limits set forth in this Act for the purpose of 
        enforcing section 311 of the Congressional Budget Act of 1974; 
        and
            (D) levels of Social Security revenues and outlays for 
        fiscal years 2012 and 2013, 2013-2017, and 2013-2022 consistent 
        with the Congressional Budget Office's March 2012 baseline 
        budget for the purpose of enforcing sections 302 and 311 of the 
        Congressional Budget Act of 1974.
    (c) Senate Pay-as-you-go Scorecard.--
        (1) Effective on the date of enactment of this section, for the 
    purpose of enforcing section 201 of S. Con. Res. 21 (110th 
    Congress), the Chairman of the Senate Committee on the Budget shall 
    reduce any balances of direct spending and revenues for any fiscal 
    year to 0 (zero).
        (2) Not later than April 15, 2012, for the purpose of enforcing 
    section 201 of S. Con. Res. 21 (110th Congress), the Chairman of 
    the Senate Committee on the Budget shall reduce any balances of 
    direct spending and revenues for any fiscal year to 0 (zero).
        (3) Upon resetting the Senate paygo scorecard pursuant to 
    paragraph (2), the Chairman shall publish a notification of such 
    action in the Congressional Record.
    (d) Further Adjustments.--
        (1) The Chairman of the Committee on the Budget of the Senate 
    may revise any allocations, aggregates, or levels set pursuant to 
    this section to account for any subsequent adjustments to 
    discretionary spending limits made pursuant to this Act.
        (2) With respect to any allocations, aggregates, or levels set 
    or adjustments made pursuant to this section, sections 412 through 
    414 of S. Con. Res. 13 (111th Congress) shall remain in effect.
    (e) Expiration.--
        (1) Subsections (a)(1), (b)(1), and (c)(1) shall expire if a 
    concurrent resolution on the budget for fiscal year 2012 is agreed 
    to by the Senate and House of Representatives pursuant to section 
    301 of the Congressional Budget Act of 1974.
        (2) Subsections (a)(2), (b)(2), and (c)(2) shall expire if a 
    concurrent resolution on the budget for fiscal year 2013 is agreed 
    to by the Senate and House of Representatives pursuant to section 
    301 of the Congressional Budget Act of 1974.

            TITLE II--VOTE ON THE BALANCED BUDGET AMENDMENT

    SEC. 201. VOTE ON THE BALANCED BUDGET AMENDMENT.
    After September 30, 2011, and not later than December 31, 2011, the 
House of Representatives and Senate, respectively, shall vote on 
passage of a joint resolution, the title of which is as follows: 
``Joint resolution proposing a balanced budget amendment to the 
Constitution of the United States.''.
    SEC. 202. CONSIDERATION BY THE OTHER HOUSE.
    (a) House Consideration.--
        (1) Referral.--If the House receives a joint resolution 
    described in section 201 from the Senate, such joint resolution 
    shall be referred to the Committee on the Judiciary. If the 
    committee fails to report the joint resolution within five 
    legislative days, it shall be in order to move that the House 
    discharge the committee from further consideration of the joint 
    resolution. Such a motion shall not be in order after the House has 
    disposed of a motion to discharge the joint resolution. The 
    previous question shall be considered as ordered on the motion to 
    its adoption without intervening motion except twenty minutes of 
    debate equally divided and controlled by the proponent and an 
    opponent. If such a motion is adopted, the House shall proceed 
    immediately to consider the joint resolution in accordance with 
    paragraph (3). A motion to reconsider the vote by which the motion 
    is disposed of shall not be in order.
        (2) Proceeding to consideration.--After the joint resolution 
    has been referred to the appropriate calendar or the committee has 
    been discharged (other than by motion) from its consideration, it 
    shall be in order to move to proceed to consider the joint 
    resolution in the House. Such a motion shall not be in order after 
    the House has disposed of a motion to proceed with respect to the 
    joint resolution. 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.
        (3) Consideration.--The joint resolution shall be considered as 
    read. All points of order against the joint resolution and against 
    its consideration are waived. The previous question shall be 
    considered as ordered on the joint resolution to its passage 
    without intervening motion except two hours of debate equally 
    divided and controlled by the proponent and an opponent and one 
    motion to limit debate on the joint resolution. A motion to 
    reconsider the vote on passage of the joint resolution shall not be 
    in order.
    (b) Senate Consideration.--(1) If the Senate receives a joint 
resolution described in section 201 from the House of Representatives, 
such joint resolution shall be referred to the appropriate committee of 
the Senate. If such committee has not reported the joint resolution at 
the close of the fifth session day after its receipt by the Senate, 
such committee shall be automatically discharged from further 
consideration of the joint resolution and it shall be placed on the 
appropriate calendar.
    (2) Consideration of the joint resolution and on all debatable 
motions and appeals in connection therewith, shall be limited to not 
more than 20 hours, which shall be divided equally between the majority 
and minority leaders or their designees. A motion further to limit 
debate is in order and not debatable. An amendment to, or a motion to 
postpone, or a motion to proceed to the consideration of other 
business, or a motion to recommit the joint resolution is not in order. 
Any debatable motion or appeal is debatable for not to exceed 1 hour, 
to be divided equally between those favoring and those opposing the 
motion or appeal. All time used for consideration of the joint 
resolution, including time used for quorum calls and voting, shall be 
counted against the total 20 hours of consideration.
    (3) If the Senate has voted to proceed to a joint resolution, the 
vote on passage of the joint resolution shall be taken on or before the 
close of the seventh session day after such joint resolution has been 
reported or discharged or immediately following the conclusion of 
consideration of the joint resolution, and a single quorum call at the 
conclusion of the debate if requested in accordance with the rules of 
the Senate.

              TITLE III--DEBT CEILING DISAPPROVAL PROCESS

    SEC. 301. DEBT CEILING DISAPPROVAL PROCESS.
    (a) In General.--Subchapter I of chapter 31 of subtitle III of 
title 31, United States Code, is amended--
        (1) in section 3101(b), by striking ``or otherwise'' and 
    inserting ``or as provided by section 3101A or otherwise''; and
        (2) by inserting after section 3101 the following:
``Sec. 3101A. Presidential modification of the debt ceiling
    ``(a) In General.--
        ``(1) $900 billion.--
            ``(A) Certification.--If, not later than December 31, 2011, 
        the President submits a written certification to Congress that 
        the President has determined that the debt subject to limit is 
        within $100,000,000,000 of the limit in section 3101(b) and 
        that further borrowing is required to meet existing 
        commitments, the Secretary of the Treasury may exercise 
        authority to borrow an additional $900,000,000,000, subject to 
        the enactment of a joint resolution of disapproval enacted 
        pursuant to this section. Upon submission of such 
        certification, the limit on debt provided in section 3101(b) 
        (referred to in this section as the `debt limit') is increased 
        by $400,000,000,000.
            ``(B) Resolution of disapproval.--Congress may consider a 
        joint resolution of disapproval of the authority under 
        subparagraph (A) as provided in subsections (b) through (f). 
        The joint resolution of disapproval considered under this 
        section shall contain only the language provided in subsection 
        (b)(2). If the time for disapproval has lapsed without 
        enactment of a joint resolution of disapproval under this 
        section, the debt limit is increased by an additional 
        $500,000,000,000.
        ``(2) Additional amount.--
            ``(A) Certification.--If, after the debt limit is increased 
        by $900,000,000,000 under paragraph (1), the President submits 
        a written certification to Congress that the President has 
        determined that the debt subject to limit is within 
        $100,000,000,000 of the limit in section 3101(b) and that 
        further borrowing is required to meet existing commitments, the 
        Secretary of the Treasury may, subject to the enactment of a 
        joint resolution of disapproval enacted pursuant to this 
        section, exercise authority to borrow an additional amount 
        equal to--
                ``(i) $1,200,000,000,000, unless clause (ii) or (iii) 
            applies;
                ``(ii) $1,500,000,000,000 if the Archivist of the 
            United States has submitted to the States for their 
            ratification a proposed amendment to the Constitution of 
            the United States pursuant to a joint resolution entitled 
            `Joint resolution proposing a balanced budget amendment to 
            the Constitution of the United States'; or
                ``(iii) if a joint committee bill to achieve an amount 
            greater than $1,200,000,000,000 in deficit reduction as 
            provided in section 401(b)(3)(B)(i)(II) of the Budget 
            Control Act of 2011 is enacted, an amount equal to the 
            amount of that deficit reduction, but not greater than 
            $1,500,000,000,000, unless clause (ii) applies.
            ``(B) Resolution of disapproval.--Congress may consider a 
        joint resolution of disapproval of the authority under 
        subparagraph (A) as provided in subsections (b) through (f). 
        The joint resolution of disapproval considered under this 
        section shall contain only the language provided in subsection 
        (b)(2). If the time for disapproval has lapsed without 
        enactment of a joint resolution of disapproval under this 
        section, the debt limit is increased by the amount authorized 
        under subparagraph (A).
    ``(b) Joint Resolution of Disapproval.--
        ``(1) In general.--Except for the $400,000,000,000 increase in 
    the debt limit provided by subsection (a)(1)(A), the debt limit may 
    not be raised under this section if, within 50 calendar days after 
    the date on which Congress receives a certification described in 
    subsection (a)(1) or within 15 calendar days after Congress 
    receives the certification described in subsection (a)(2) 
    (regardless of whether Congress is in session), there is enacted 
    into law a joint resolution disapproving the President's exercise 
    of authority with respect to such additional amount.
        ``(2) Contents of joint resolution.--For the purpose of this 
    section, the term `joint resolution' means only a joint 
    resolution--
            ``(A)(i) for the certification described in subsection 
        (a)(1), that is introduced on September 6, 7, 8, or 9, 2011 
        (or, if the Senate was not in session, the next calendar day on 
        which the Senate is in session); and
            ``(ii) for the certification described in subsection 
        (a)(2), that is introduced between the date the certification 
        is received and 3 calendar days after that date;
            ``(B) which does not have a preamble;
            ``(C) the title of which is only as follows: `Joint 
        resolution relating to the disapproval of the President's 
        exercise of authority to increase the debt limit, as submitted 
        under section 3101A of title 31, United States Code, on ______' 
        (with the blank containing the date of such submission); and
            ``(D) the matter after the resolving clause of which is 
        only as follows: `That Congress disapproves of the President's 
        exercise of authority to increase the debt limit, as exercised 
        pursuant to the certification under section 3101A(a) of title 
        31, United States Code.'.
    ``(c) Expedited Consideration in House of Representatives.--
        ``(1) Reconvening.--Upon receipt of a certification described 
    in subsection (a)(2), the Speaker, if the House would otherwise be 
    adjourned, shall notify the Members of the House that, pursuant to 
    this section, the House shall convene not later than the second 
    calendar day after receipt of such certification.
        ``(2) Reporting and discharge.--Any committee of the House of 
    Representatives to which a joint resolution is referred shall 
    report it to the House without amendment not later than 5 calendar 
    days after the date of introduction of a joint resolution described 
    in subsection (a). If a committee fails to report the joint 
    resolution within that period, the committee shall be discharged 
    from further consideration of the joint resolution and the joint 
    resolution shall be referred to the appropriate calendar.
        ``(3) Proceeding to consideration.--After each committee 
    authorized to consider a joint resolution reports it to the House 
    or has been discharged from its consideration, it shall be in 
    order, not later than the sixth day after introduction of a joint 
    resolution under subsection (a), to move to proceed to consider the 
    joint resolution in the House. All points of order against the 
    motion are waived. Such a motion shall not be in order after the 
    House has disposed of a motion to proceed on a joint resolution 
    addressing a particular submission. The previous question shall be 
    considered as ordered on the motion to its adoption without 
    intervening motion. The motion shall not be debatable. A motion to 
    reconsider the vote by which the motion is disposed of shall not be 
    in order.
        ``(4) Consideration.--The joint resolution shall be considered 
    as read. All points of order against the joint resolution and 
    against its consideration are waived. The previous question shall 
    be considered as ordered on the joint resolution to its passage 
    without intervening motion except two hours of debate equally 
    divided and controlled by the proponent and an opponent. A motion 
    to reconsider the vote on passage of the joint resolution shall not 
    be in order.
    ``(d) Expedited Procedure in Senate.--
        ``(1) Reconvening.--Upon receipt of a certification under 
    subsection (a)(2), if the Senate has adjourned or recessed for more 
    than 2 days, the majority leader of the Senate, after consultation 
    with the minority leader of the Senate, shall notify the Members of 
    the Senate that, pursuant to this section, the Senate shall convene 
    not later than the second calendar day after receipt of such 
    message.
        ``(2) Placement on calendar.--Upon introduction in the Senate, 
    the joint resolution shall be immediately placed on the calendar.
        ``(3) Floor consideration.--
            ``(A) In general.--Notwithstanding Rule XXII of the 
        Standing Rules of the Senate, it is in order at any time during 
        the period beginning on the day after the date on which 
        Congress receives a certification under subsection (a) and, for 
        the certification described in subsection (a)(1), ending on 
        September 14, 2011, and for the certification described in 
        subsection (a)(2), on the 6th day after the date on which 
        Congress receives a certification under subsection (a) (even 
        though a previous motion to the same effect has been disagreed 
        to) to move to proceed to the consideration of the joint 
        resolution, and all points of order against the joint 
        resolution (and against consideration of the joint resolution) 
        are waived. The motion to proceed is not debatable. The motion 
        is not subject to a motion to postpone. A motion to reconsider 
        the vote by which the motion is agreed to or disagreed to shall 
        not be in order. If a motion to proceed to the consideration of 
        the resolution is agreed to, the joint resolution shall remain 
        the unfinished business until disposed of.
            ``(B) Consideration.--Consideration of the joint 
        resolution, and on all debatable motions and appeals in 
        connection therewith, shall be limited to not more than 10 
        hours, which shall be divided equally between the majority and 
        minority leaders or their designees. A motion further to limit 
        debate is in order and not debatable. An amendment to, or a 
        motion to postpone, or a motion to proceed to the consideration 
        of other business, or a motion to recommit the joint resolution 
        is not in order.
            ``(C) Vote on passage.--If the Senate has voted to proceed 
        to a joint resolution, the vote on passage of the joint 
        resolution shall occur immediately following the conclusion of 
        consideration of the joint resolution, and a single quorum call 
        at the conclusion of the debate if requested in accordance with 
        the rules of the Senate.
            ``(D) Rulings of the chair on procedure.--Appeals from the 
        decisions of the Chair relating to the application of the rules 
        of the Senate, as the case may be, to the procedure relating to 
        a joint resolution shall be decided without debate.
    ``(e) Amendment Not in Order.--A joint resolution of disapproval 
considered pursuant to this section shall not be subject to amendment 
in either the House of Representatives or the Senate.
    ``(f) Coordination With Action by Other House.--
        ``(1) In general.--If, before passing the joint resolution, one 
    House receives from the other a joint resolution--
            ``(A) the joint resolution of the other House shall not be 
        referred to a committee; and
            ``(B) the procedure in the receiving House shall be the 
        same as if no joint resolution had been received from the other 
        House until the vote on passage, when the joint resolution 
        received from the other House shall supplant the joint 
        resolution of the receiving House.
        ``(2) Treatment of joint resolution of other house.--If the 
    Senate fails to introduce or consider a joint resolution under this 
    section, the joint resolution of the House shall be entitled to 
    expedited floor procedures under this section.
        ``(3) Treatment of companion measures.--If, following passage 
    of the joint resolution in the Senate, the Senate then receives the 
    companion measure from the House of Representatives, the companion 
    measure shall not be debatable.
        ``(4) Consideration after passage.--(A) If Congress passes a 
    joint resolution, the period beginning on the date the President is 
    presented with the joint resolution and ending on the date the 
    President signs, allows to become law without his signature, or 
    vetoes and returns the joint resolution (but excluding days when 
    either House is not in session) shall be disregarded in computing 
    the appropriate calendar day period described in subsection (b)(1).
        ``(B) Debate on a veto message in the Senate under this section 
    shall be 1 hour equally divided between the majority and minority 
    leaders or their designees.
        ``(5) Veto override.--If within the appropriate calendar day 
    period described in subsection (b)(1), Congress overrides a veto of 
    the joint resolution with respect to authority exercised pursuant 
    to paragraph (1) or (2) of subsection (a), the limit on debt 
    provided in section 3101(b) shall not be raised, except for the 
    $400,000,000,000 increase in the limit provided by subsection 
    (a)(1)(A).
        ``(6) Sequestration.--(A) If within the 50-calendar day period 
    described in subsection (b)(1), the President signs the joint 
    resolution, the President allows the joint resolution to become law 
    without his signature, or Congress overrides a veto of the joint 
    resolution with respect to authority exercised pursuant to 
    paragraph (1) of subsection (a), there shall be a sequestration to 
    reduce spending by $400,000,000,000. OMB shall implement the 
    sequestration forthwith.
        ``(B) OMB shall implement each half of such sequestration in 
    accordance with section 255, section 256, and subsections (c), (d), 
    (e), and (f) of section 253 of the Balanced Budget and Emergency 
    Deficit Control Act of 1985, and for the purpose of such 
    implementation the term `excess deficit' means the amount specified 
    in subparagraph (A).
    ``(g) Rules of House of Representatives and Senate.--This 
subsection and subsections (b), (c), (d), (e), and (f) (other than 
paragraph (6)) are enacted by Congress--
        ``(1) as an exercise of the rulemaking power of the Senate and 
    House of Representatives, respectively, and as such it is deemed a 
    part of the rules of each House, respectively, but applicable only 
    with respect to the procedure to be followed in that House in the 
    case of a joint resolution, and it supersedes other rules only to 
    the extent that it is inconsistent with such rules; and
        ``(2) with full recognition of the constitutional right of 
    either House to change the rules (so far as relating to the 
    procedure of that House) at any time, in the same manner, and to 
    the same extent as in the case of any other rule of that House.''.
    (b) Conforming Amendment.--The table of sections for chapter 31 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 3101 the following new item:

``3101A. Presidential modification of the debt ceiling.''.
    SEC. 302. ENFORCEMENT OF BUDGET GOAL.
    (a) In General.--The Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by inserting after section 251 the following new 
section:
``SEC. 251A. ENFORCEMENT OF BUDGET GOAL.
    ``Unless a joint committee bill achieving an amount greater than 
$1,200,000,000,000 in deficit reduction as provided in section 
401(b)(3)(B)(i)(II) of the Budget Control Act of 2011 is enacted by 
January 15, 2012, the discretionary spending limits listed in section 
251(c) shall be revised, and discretionary appropriations and direct 
spending shall be reduced, as follows:
        ``(1) Revised security category; revised nonsecurity 
    category.--(A) The term `revised security category' means 
    discretionary appropriations in budget function 050.
        ``(B) The term `revised nonsecurity category' means 
    discretionary appropriations other than in budget function 050.
        ``(2) Revised discretionary spending limits.--The discretionary 
    spending limits for fiscal years 2013 through 2021 under section 
    251(c) shall be replaced with the following:
            ``(A) For fiscal year 2013--
                ``(i) for the security category, $546,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $501,000,000,000 
            in budget authority.
            ``(B) For fiscal year 2014--
                ``(i) for the security category, $556,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $510,000,000,000 
            in budget authority.
            ``(C) For fiscal year 2015--
                ``(i) for the security category, $566,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $520,000,000,000 
            in budget authority.
            ``(D) For fiscal year 2016--
                ``(i) for the security category, $577,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $530,000,000,000 
            in budget authority.
            ``(E) For fiscal year 2017--
                ``(i) for the security category, $590,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $541,000,000,000 
            in budget authority.
            ``(F) For fiscal year 2018--
                ``(i) for the security category, $603,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $553,000,000,000 
            in budget authority.
            ``(G) For fiscal year 2019--
                ``(i) for the security category, $616,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $566,000,000,000 
            in budget authority.
            ``(H) For fiscal year 2020--
                ``(i) for the security category, $630,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $578,000,000,000 
            in budget authority.
            ``(I) For fiscal year 2021--
                ``(i) for the security category, $644,000,000,000 in 
            budget authority; and
                ``(ii) for the nonsecurity category, $590,000,000,000 
            in budget authority.
        ``(3) Calculation of total deficit reduction.--OMB shall 
    calculate the amount of the deficit reduction required by this 
    section for each of fiscal years 2013 through 2021 by--
            ``(A) starting with $1,200,000,000,000;
            ``(B) subtracting the amount of deficit reduction achieved 
        by the enactment of a joint committee bill, as provided in 
        section 401(b)(3)(B)(i)(II) of the Budget Control Act of 2011;
            ``(C) reducing the difference by 18 percent to account for 
        debt service; and
            ``(D) dividing the result by 9.
        ``(4) Allocation to functions.--On January 2, 2013, for fiscal 
    year 2013, and in its sequestration preview report for fiscal years 
    2014 through 2021 pursuant to section 254(c), OMB shall allocate 
    half of the total reduction calculated pursuant to paragraph (3) 
    for that year to discretionary appropriations and direct spending 
    accounts within function 050 (defense function) and half to 
    accounts in all other functions (nondefense functions).
        ``(5) Defense function reduction.--OMB shall calculate the 
    reductions to discretionary appropriations and direct spending for 
    each of fiscal years 2013 through 2021 for defense function 
    spending as follows:
            ``(A) Discretionary.--OMB shall calculate the reduction to 
        discretionary appropriations by--
                ``(i) taking the total reduction for the defense 
            function allocated for that year under paragraph (4);
                ``(ii) multiplying by the discretionary spending limit 
            for the revised security category for that year; and
                ``(iii) dividing by the sum of the discretionary 
            spending limit for the security category and OMB's baseline 
            estimate of nonexempt outlays for direct spending programs 
            within the defense function for that year.
            ``(B) Direct spending.--OMB shall calculate the reduction 
        to direct spending by taking the total reduction for the 
        defense function required for that year under paragraph (4) and 
        subtracting the discretionary reduction calculated pursuant to 
        subparagraph (A).
        ``(6) Nondefense function reduction.--OMB shall calculate the 
    reduction to discretionary appropriations and to direct spending 
    for each of fiscal years 2013 through 2021 for programs in 
    nondefense functions as follows:
            ``(A) Discretionary.--OMB shall calculate the reduction to 
        discretionary appropriations by--
                ``(i) taking the total reduction for nondefense 
            functions allocated for that year under paragraph (4);
                ``(ii) multiplying by the discretionary spending limit 
            for the revised nonsecurity category for that year; and
                ``(iii) dividing by the sum of the discretionary 
            spending limit for the revised nonsecurity category and 
            OMB's baseline estimate of nonexempt outlays for direct 
            spending programs in nondefense functions for that year.
            ``(B) Direct spending.--OMB shall calculate the reduction 
        to direct spending programs by taking the total reduction for 
        nondefense functions required for that year under paragraph (4) 
        and subtracting the discretionary reduction calculated pursuant 
        to subparagraph (A).
        ``(7) Implementing discretionary reductions.--
            ``(A) Fiscal year 2013.--On January 2, 2013, for fiscal 
        year 2013, OMB shall calculate and the President shall order a 
        sequestration, effective upon issuance and under the procedures 
        set forth in section 253(f), to reduce each account within the 
        security category or nonsecurity category by a dollar amount 
        calculated by multiplying the baseline level of budgetary 
        resources in that account at that time by a uniform percentage 
        necessary to achieve--
                ``(i) for the revised security category, an amount 
            equal to the defense function discretionary reduction 
            calculated pursuant to paragraph (5); and
                ``(ii) for the revised nonsecurity category, an amount 
            equal to the nondefense function discretionary reduction 
            calculated pursuant to paragraph (6).
            ``(B) Fiscal years 2014-2021.--On the date of the 
        submission of its sequestration preview report for fiscal years 
        2014 through 2021 pursuant to section 254(c) for each of fiscal 
        years 2014 through 2021, OMB shall reduce the discretionary 
        spending limit--
                ``(i) for the revised security category by the amount 
            of the defense function discretionary reduction calculated 
            pursuant to paragraph (5); and
                ``(ii) for the revised nonsecurity category by the 
            amount of the nondefense function discretionary reduction 
            calculated pursuant to paragraph (6).
        ``(8) Implementing direct spending reductions.--On the date 
    specified in paragraph (4) during each applicable year, OMB shall 
    prepare and the President shall order a sequestration, effective 
    upon issuance, of nonexempt direct spending to achieve the direct 
    spending reduction calculated pursuant to paragraphs (5) and (6). 
    When implementing the sequestration of direct spending pursuant to 
    this paragraph, OMB shall follow the procedures specified in 
    section 6 of the Statutory Pay-As-You-Go Act of 2010, the 
    exemptions specified in section 255, and the special rules 
    specified in section 256, except that the percentage reduction for 
    the Medicare programs specified in section 256(d) shall not be more 
    than 2 percent for a fiscal year.
        ``(9) Adjustment for medicare.--If the percentage reduction for 
    the Medicare programs would exceed 2 percent for a fiscal year in 
    the absence of paragraph (8), OMB shall increase the reduction for 
    all other discretionary appropriations and direct spending under 
    paragraph (6) by a uniform percentage to a level sufficient to 
    achieve the reduction required by paragraph (6) in the non-defense 
    function.
        ``(10) Implementation of reductions.--Any reductions imposed 
    under this section shall be implemented in accordance with section 
    256(k).
        ``(11) Report.--On the dates specified in paragraph (4), OMB 
    shall submit a report to Congress containing information about the 
    calculations required under this section, the adjusted 
    discretionary spending limits, a listing of the reductions required 
    for each nonexempt direct spending account, and any other data and 
    explanations that enhance public understanding of this title and 
    actions taken under it.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 250(a) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 is amended by inserting after the item relating to section 251 
the following:

``Sec. 251A. Enforcement of budget goal.''.

         TITLE IV--JOINT SELECT COMMITTEE ON DEFICIT REDUCTION

    SEC. 401. ESTABLISHMENT OF JOINT SELECT COMMITTEE.
    (a) Definitions.--In this title:
        (1) Joint committee.--The term ``joint committee'' means the 
    Joint Select Committee on Deficit Reduction established under 
    subsection (b)(1).
        (2) Joint committee bill.--The term ``joint committee bill'' 
    means a bill consisting of the proposed legislative language of the 
    joint committee recommended under subsection (b)(3)(B) and 
    introduced under section 402(a).
    (b) Establishment of Joint Select Committee.--
        (1) Establishment.--There is established a joint select 
    committee of Congress to be known as the ``Joint Select Committee 
    on Deficit Reduction''.
        (2) Goal.--The goal of the joint committee shall be to reduce 
    the deficit by at least $1,500,000,000,000 over the period of 
    fiscal years 2012 to 2021.
        (3) Duties.--
            (A) In general.--
                (i) Improving the short-term and long-term fiscal 
            imbalance.--The joint committee shall provide 
            recommendations and legislative language that will 
            significantly improve the short-term and long-term fiscal 
            imbalance of the Federal Government.
                (ii) Recommendations of committees.--Not later than 
            October 14, 2011, each committee of the House of 
            Representatives and the Senate may transmit to the joint 
            committee its recommendations for changes in law to reduce 
            the deficit consistent with the goal described in paragraph 
            (2) for the joint committee's consideration.
            (B) Report, recommendations, and legislative language.--
                (i) In general.--Not later than November 23, 2011, the 
            joint committee shall vote on--

                    (I) a report that contains a detailed statement of 
                the findings, conclusions, and recommendations of the 
                joint committee and the estimate of the Congressional 
                Budget Office required by paragraph (5)(D)(ii); and
                    (II) proposed legislative language to carry out 
                such recommendations as described in subclause (I), 
                which shall include a statement of the deficit 
                reduction achieved by the legislation over the period 
                of fiscal years 2012 to 2021.

            Any change to the Rules of the House of Representatives or 
            the Standing Rules of the Senate included in the report or 
            legislative language shall be considered to be merely 
            advisory.
                (ii) Approval of report and legislative language.--The 
            report of the joint committee and the proposed legislative 
            language described in clause (i) shall require the approval 
            of a majority of the members of the joint committee.
                (iii) Additional views.--A member of the joint 
            committee who gives notice of an intention to file 
            supplemental, minority, or additional views at the time of 
            final joint committee vote on the approval of the report 
            and legislative language under clause (ii) shall be 
            entitled to 3 calendar days in which to file such views in 
            writing with the staff director of the joint committee. 
            Such views shall then be included in the joint committee 
            report and printed in the same volume, or part thereof, and 
            their inclusion shall be noted on the cover of the report. 
            In the absence of timely notice, the joint committee report 
            may be printed and transmitted immediately without such 
            views.
                (iv) Transmission of report and legislative language.--
            If the report and legislative language are approved by the 
            joint committee pursuant to clause (ii), then not later 
            than December 2, 2011, the joint committee shall submit the 
            joint committee report and legislative language described 
            in clause (i) to the President, the Vice President, the 
            Speaker of the House of Representatives, and the majority 
            and minority Leaders of each House of Congress.
                (v) Report and legislative language to be made 
            public.--Upon the approval or disapproval of the joint 
            committee report and legislative language pursuant to 
            clause (ii), the joint committee shall promptly make the 
            full report and legislative language, and a record of the 
            vote, available to the public.
        (4) Membership.--
            (A) In general.--The joint committee shall be composed of 
        12 members appointed pursuant to subparagraph (B).
            (B) Appointment.--Members of the joint committee shall be 
        appointed as follows:
                (i) The majority leader of the Senate shall appoint 
            three members from among Members of the Senate.
                (ii) The minority leader of the Senate shall appoint 
            three members from among Members of the Senate.
                (iii) The Speaker of the House of Representatives shall 
            appoint three members from among Members of the House of 
            Representatives.
                (iv) The minority leader of the House of 
            Representatives shall appoint three members from among 
            Members of the House of Representatives.
            (C) Co-chairs.--
                (i) In general.--There shall be two Co-Chairs of the 
            joint committee. The majority leader of the Senate shall 
            appoint one Co-Chair from among the members of the joint 
            committee. The Speaker of the House of Representatives 
            shall appoint the second Co-Chair from among the members of 
            the joint committee. The Co-Chairs shall be appointed not 
            later than 14 calendar days after the date of enactment of 
            this Act.
                (ii) Staff director.--The Co-Chairs, acting jointly, 
            shall hire the staff director of the joint committee.
            (D) Date.--Members of the joint committee shall be 
        appointed not later than 14 calendar days after the date of 
        enactment of this Act.
            (E) Period of appointment.--Members shall be appointed for 
        the life of the joint committee. Any vacancy in the joint 
        committee shall not affect its powers, but shall be filled not 
        later than 14 calendar days after the date on which the vacancy 
        occurs, in the same manner as the original designation was 
        made. If a member of the joint committee ceases to be a Member 
        of the House of Representatives or the Senate, as the case may 
        be, the member is no longer a member of the joint committee and 
        a vacancy shall exist.
        (5) Administration.--
            (A) In general.--To enable the joint committee to exercise 
        its powers, functions, and duties, there are authorized to be 
        disbursed by the Senate the actual and necessary expenses of 
        the joint committee approved by the co-chairs, subject to the 
        rules and regulations of the Senate.
            (B) Expenses.--In carrying out its functions, the joint 
        committee is authorized to incur expenses in the same manner 
        and under the same conditions as the Joint Economic Committee 
        is authorized by section 11 of Public Law 79-304 (15 U.S.C. 
        1024 (d)).
            (C) Quorum.--Seven members of the joint committee shall 
        constitute a quorum for purposes of voting, meeting, and 
        holding hearings.
            (D) Voting.--
                (i) Proxy voting.--No proxy voting shall be allowed on 
            behalf of the members of the joint committee.
                (ii) Congressional budget office estimates.--The 
            Congressional Budget Office shall provide estimates of the 
            legislation (as described in paragraph (3)(B)) in 
            accordance with sections 308(a) and 201(f) of the 
            Congressional Budget Act of 1974 (2 U.S.C. 639(a) and 
            601(f))(including estimates of the effect of interest 
            payment on the debt). In addition, the Congressional Budget 
            Office shall provide information on the budgetary effect of 
            the legislation beyond the year 2021. The joint committee 
            may not vote on any version of the report, recommendations, 
            or legislative language unless such estimates are available 
            for consideration by all members of the joint committee at 
            least 48 hours prior to the vote as certified by the Co-
            Chairs.
            (E) Meetings.--
                (i) Initial meeting.--Not later than 45 calendar days 
            after the date of enactment of this Act, the joint 
            committee shall hold its first meeting.
                (ii) Agenda.--The Co-Chairs of the joint committee 
            shall provide an agenda to the joint committee members not 
            less than 48 hours in advance of any meeting.
            (F) Hearings.--
                (i) In general.--The joint committee may, for the 
            purpose of carrying out this section, hold such hearings, 
            sit and act at such times and places, require attendance of 
            witnesses and production of books, papers, and documents, 
            take such testimony, receive such evidence, and administer 
            such oaths as the joint committee considers advisable.
                (ii) Hearing procedures and responsibilities of co-
            chairs.--

                    (I) Announcement.--The Co-Chairs of the joint 
                committee shall make a public announcement of the date, 
                place, time, and subject matter of any hearing to be 
                conducted, not less than 7 days in advance of such 
                hearing, unless the Co-Chairs determine that there is 
                good cause to begin such hearing at an earlier date.
                    (II) Written statement.--A witness appearing before 
                the joint committee shall file a written statement of 
                proposed testimony at least 2 calendar days before the 
                appearance of the witness, unless the requirement is 
                waived by the Co-Chairs, following their determination 
                that there is good cause for failure to comply with 
                such requirement.

            (G) Technical assistance.--Upon written request of the Co-
        Chairs, a Federal agency shall provide technical assistance to 
        the joint committee in order for the joint committee to carry 
        out its duties.
    (c) Staff of Joint Committee.--
        (1) In general.--The Co-Chairs of the joint committee may 
    jointly appoint and fix the compensation of staff as they deem 
    necessary, within the guidelines for employees of the Senate and 
    following all applicable rules and employment requirements of the 
    Senate.
        (2) Ethical standards.--Members on the joint committee who 
    serve in the House of Representatives shall be governed by the 
    ethics rules and requirements of the House. Members of the Senate 
    who serve on the joint committee and staff of the joint committee 
    shall comply with the ethics rules of the Senate.
    (d) Termination.--The joint committee shall terminate on January 
31, 2012.
    SEC. 402. EXPEDITED CONSIDERATION OF JOINT COMMITTEE 
      RECOMMENDATIONS.
    (a) Introduction.--If approved by the majority required by section 
401(b)(3)(B)(ii), the proposed legislative language submitted pursuant 
to section 401(b)(3)(B)(iv) shall be introduced in the Senate (by 
request) on the next day on which the Senate is in session by the 
majority leader of the Senate or by a Member of the Senate designated 
by the majority leader of the Senate and shall be introduced in the 
House of Representatives (by request) on the next legislative day by 
the majority leader of the House or by a Member of the House designated 
by the majority leader of the House.
    (b) Consideration in the House of Representatives.--
        (1) Referral and reporting.--Any committee of the House of 
    Representatives to which the joint committee bill is referred shall 
    report it to the House without amendment not later than December 9, 
    2011. If a committee fails to report the joint committee bill 
    within that period, it shall be in order to move that the House 
    discharge the committee from further consideration of the bill. 
    Such a motion shall not be in order after the last committee 
    authorized to consider the bill reports it to the House or after 
    the House has disposed of a motion to discharge the bill. The 
    previous question shall be considered as ordered on the motion to 
    its adoption without intervening motion except 20 minutes of debate 
    equally divided and controlled by the proponent and an opponent. If 
    such a motion is adopted, the House shall proceed immediately to 
    consider the joint committee bill in accordance with paragraphs (2) 
    and (3). A motion to reconsider the vote by which the motion is 
    disposed of shall not be in order.
        (2) Proceeding to consideration.--After the last committee 
    authorized to consider a joint committee bill reports it to the 
    House or has been discharged (other than by motion) from its 
    consideration, it shall be in order to move to proceed to consider 
    the joint committee bill in the House. Such a motion shall not be 
    in order after the House has disposed of a motion to proceed with 
    respect to the joint committee bill. 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.
        (3) Consideration.--The joint committee bill shall be 
    considered as read. All points of order against the joint committee 
    bill and against its consideration are waived. The previous 
    question shall be considered as ordered on the joint committee bill 
    to its passage without intervening motion except 2 hours of debate 
    equally divided and controlled by the proponent and an opponent and 
    one motion to limit debate on the joint committee bill. A motion to 
    reconsider the vote on passage of the joint committee bill shall 
    not be in order.
        (4) Vote on passage.--The vote on passage of the joint 
    committee bill shall occur not later than December 23, 2011.
    (c) Expedited Procedure in the Senate.--
        (1) Committee consideration.--A joint committee bill introduced 
    in the Senate under subsection (a) shall be jointly referred to the 
    committee or committees of jurisdiction, which committees shall 
    report the bill without any revision and with a favorable 
    recommendation, an unfavorable recommendation, or without 
    recommendation, not later than December 9, 2011. If any committee 
    fails to report the bill within that period, that committee shall 
    be automatically discharged from consideration of the bill, and the 
    bill shall be placed on the appropriate calendar.
        (2) Motion to proceed.--Notwithstanding Rule XXII of the 
    Standing Rules of the Senate, it is in order, not later than 2 days 
    of session after the date on which a joint committee bill is 
    reported or discharged from all committees to which it was 
    referred, for the majority leader of the Senate or the majority 
    leader's designee to move to proceed to the consideration of the 
    joint committee bill. It shall also be in order for any Member of 
    the Senate to move to proceed to the consideration of the joint 
    committee bill at any time after the conclusion of such 2-day 
    period. A motion to proceed is in order even though a previous 
    motion to the same effect has been disagreed to. All points of 
    order against the motion to proceed to the joint committee bill are 
    waived. The motion to proceed is not debatable. The motion is not 
    subject to a motion to postpone. A motion to reconsider the vote by 
    which the motion is agreed to or disagreed to shall not be in 
    order. If a motion to proceed to the consideration of the joint 
    committee bill is agreed to, the joint committee bill shall remain 
    the unfinished business until disposed of.
        (3) Consideration.--All points of order against the joint 
    committee bill and against consideration of the joint committee 
    bill are waived. Consideration of the joint committee bill and of 
    all debatable motions and appeals in connection therewith shall not 
    exceed a total of 30 hours which shall be divided equally between 
    the Majority and Minority Leaders or their designees. A motion 
    further to limit debate on the joint committee bill is in order, 
    shall require an affirmative vote of three-fifths of the Members 
    duly chosen and sworn, and is not debatable. Any debatable motion 
    or appeal is debatable for not to exceed 1 hour, to be divided 
    equally between those favoring and those opposing the motion or 
    appeal. All time used for consideration of the joint committee 
    bill, including time used for quorum calls and voting, shall be 
    counted against the total 30 hours of consideration.
        (4) No amendments.--An amendment to the joint committee bill, 
    or a motion to postpone, or a motion to proceed to the 
    consideration of other business, or a motion to recommit the joint 
    committee bill, is not in order.
        (5) Vote on passage.--If the Senate has voted to proceed to the 
    joint committee bill, the vote on passage of the joint committee 
    bill shall occur immediately following the conclusion of the debate 
    on a joint committee bill, and a single quorum call at the 
    conclusion of the debate if requested. The vote on passage of the 
    joint committee bill shall occur not later than December 23, 2011.
        (6) Rulings of the chair on procedure.--Appeals from the 
    decisions of the Chair relating to the application of the rules of 
    the Senate, as the case may be, to the procedure relating to a 
    joint committee bill shall be decided without debate.
    (d) Amendment.--The joint committee bill shall not be subject to 
amendment in either the House of Representatives or the Senate.
    (e) Consideration by the Other House.--
        (1) In general.--If, before passing the joint committee bill, 
    one House receives from the other a joint committee bill--
            (A) the joint committee bill of the other House shall not 
        be referred to a committee; and
            (B) the procedure in the receiving House shall be the same 
        as if no joint committee bill had been received from the other 
        House until the vote on passage, when the joint committee bill 
        received from the other House shall supplant the joint 
        committee bill of the receiving House.
        (2) Revenue measure.--This subsection shall not apply to the 
    House of Representatives if the joint committee bill received from 
    the Senate is a revenue measure.
    (f) Rules to Coordinate Action With Other House.--
        (1) Treatment of joint committee bill of other house.--If the 
    Senate fails to introduce or consider a joint committee bill under 
    this section, the joint committee bill of the House shall be 
    entitled to expedited floor procedures under this section.
        (2) Treatment of companion measures in the senate.--If 
    following passage of the joint committee bill in the Senate, the 
    Senate then receives the joint committee bill from the House of 
    Representatives, the House-passed joint committee bill shall not be 
    debatable. The vote on passage of the joint committee bill in the 
    Senate shall be considered to be the vote on passage of the joint 
    committee bill received from the House of Representatives.
        (3) Vetoes.--If the President vetoes the joint committee bill, 
    debate on a veto message in the Senate under this section shall be 
    1 hour equally divided between the majority and minority leaders or 
    their designees.
    (g) Loss of Privilege.--The provisions of this section shall cease 
to apply to the joint committee bill if--
        (1) the joint committee fails to vote on the report or proposed 
    legislative language required under section 401(b)(3)(B)(i) not 
    later than November 23, 2011; or
        (2) the joint committee bill does not pass both Houses not 
    later than December 23, 2011.
    SEC. 403. FUNDING.
    Funding for the joint committee shall be derived in equal portions 
from--
        (1) the applicable accounts of the House of Representatives; 
    and
        (2) the contingent fund of the Senate from the appropriations 
    account ``Miscellaneous Items'', subject to the rules and 
    regulations of the Senate.
    SEC. 404. RULEMAKING.
    The provisions of this title are enacted by Congress--
        (1) as an exercise of the rulemaking power of the House of 
    Representatives and the Senate, respectively, and as such they 
    shall be considered as part of the rules of each House, 
    respectively, or of that House to which they specifically apply, 
    and such rules shall supersede other rules only to the extent that 
    they are inconsistent therewith; and
        (2) with full recognition of the constitutional right of either 
    House to change such rules (so far as relating to such House) at 
    any time, in the same manner, and to the same extent as in the case 
    of any other rule of such House.

          TITLE V--PELL GRANT AND STUDENT LOAN PROGRAM CHANGES

    SEC. 501. FEDERAL PELL GRANTS.
    Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 (20 
U.S.C. 1070a(b)(7)(A)(iv)) is amended--
        (1) in subclause (II), by striking ``$3,183,000,000'' and 
    inserting ``$13,183,000,000''; and
        (2) in subclause (III), by striking ``$0'' and inserting 
    ``$7,000,000,000''.
    SEC. 502. TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED 
      LOANS TO GRADUATE AND PROFESSIONAL STUDENTS.
    Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(a)) is amended by adding at the end the following new paragraph:
        ``(3) Termination of authority to make interest subsidized 
    loans to graduate and professional students.--
            ``(A) In general.--Subject to subparagraph (B) and 
        notwithstanding any provision of this part or part B, for any 
        period of instruction beginning on or after July 1, 2012--
                ``(i) a graduate or professional student shall not be 
            eligible to receive a Federal Direct Stafford loan under 
            this part; and
                ``(ii) the maximum annual amount of Federal Direct 
            Unsubsidized Stafford loans such a student may borrow in 
            any academic year (as defined in section 481(a)(2)) or its 
            equivalent shall be the maximum annual amount for such 
            student determined under section 428H, plus an amount equal 
            to the amount of Federal Direct Stafford loans the student 
            would have received in the absence of this subparagraph.
            ``(B) Exception.--Subparagraph (A) shall not apply to an 
        individual enrolled in course work specified in paragraph 
        (3)(B) or (4)(B) of section 484(b).''.
    SEC. 503. TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES.
    Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(b)(8)) is amended--
        (1) in subparagraph (A)--
            (A) by amending the header to read as follows: ``(A) 
        Incentives for loans disbursed before july 1, 2012.--''; and
            (B) by inserting ``with respect to loans for which the 
        first disbursement of principal is made before July 1, 2012,'' 
        after ``of this part'';
        (2) in subparagraph (B), by inserting ``with respect to loans 
    for which the first disbursement of principal is made before July 
    1, 2012'' after ``repayment incentives''; and
        (3) by adding at the end the following new subparagraph:
            ``(C) No repayment incentives for new loans disbursed on or 
        after july 1, 2012.--Notwithstanding any other provision of 
        this part, the Secretary is prohibited from authorizing or 
        providing any repayment incentive not otherwise authorized 
        under this part to encourage on-time repayment of a loan under 
        this part for which the first disbursement of principal is made 
        on or after July 1, 2012, including any reduction in the 
        interest or origination fee rate paid by a borrower of such a 
        loan, except that the Secretary may provide for an interest 
        rate reduction for a borrower who agrees to have payments on 
        such a loan automatically electronically debited from a bank 
        account.''.
    SEC. 504. INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING AND 
      MASTER CALENDAR EXCEPTION.
    Sections 482(c) and 492 of the Higher Education Act of 1965 (20 
U.S.C. 1089(c), 1098a) shall not apply to the amendments made by this 
title, or to any regulations promulgated under those amendments.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.