[Congressional Record Volume 150, Number 89 (Thursday, June 24, 2004)]
[House]
[Pages H4991-H5066]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SPENDING CONTROL ACT OF 2004
The SPEAKER pro tempore. Pursuant to House Resolution 692 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the State of the Union for the further consideration of the bill,
H.R. 4663.
{time} 1905
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the further consideration of
the bill (H.R. 4663) to amend part C of the Balanced Budget and
Emergency Deficit Control Act of 1985 to establish discretionary
spending limits and a pay-as-you-go requirement for mandatory spending,
with Mr. Bass (Chairman pro tempore) in the chair.
The Clerk read the title of the bill.
The CHAIRMAN pro tempore. When the Committee of the Whole rose
earlier today, amendment No. 5 printed in House Report 108-566 offered
by the gentleman from Texas (Mr. Hensarling) had been disposed of.
Pursuant to the order of the House of today, amendment No. 18 printed
in the report may be considered out of sequence and may be withdrawn by
its proponent after debate thereon.
Amendment No. 18 In the Nature of a Substitute Offered by Mr. Young of
Florida
Mr. YOUNG of Florida. Mr. Chairman, I offer an amendment in the
nature of a substitute.
The CHAIRMAN pro tempore. The Clerk will designate the amendment in
the nature of a substitute.
The text of the amendment in the nature of a substitute is as
follows:
Amendment No. 18 in the nature of a substitute No. 18
offered by Mr. Young of Florida:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Spending Control Act of
2004''.
SEC. 2. EXTENSION OF DIRECT SPENDING CONTROLS.
(a) Purpose.--Section 252(a) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``(a) Purpose.--The purpose of this section is to assure
that any legislation that causes a net increase in direct
spending will trigger an offsetting sequestration.''.
(b) Timing.--Section 252(b)(1) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by striking
``any net deficit increase'' and all that follows through
``2002,'' and by inserting ``any net increase in direct
spending,''.
(c) Calculation of Direct Spending Increase.--(1) Section
252(b)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
``(2) Calculation of Direct Spending Increase.--OMB shall
calculate the amount of increase or decrease in direct
spending. If, in the President's budget submission pursuant
to section 1105(a) of title 31, United States Code, baseline
estimates for direct spending for the current year exceed the
direct spending baseline estimates for the current year
assumed in the previous year's budget as a result of
legislation enacted since the previous budget, that shall be
treated as an increase in direct spending for purposes of
this section.
[[Page H4992]]
(2) Conforming Amendment.--Section 1105(a) of title 31,
United States Code, is amended by adding at the end the
following new paragraph:
``(35) a separate statement identifying the changes in
direct spending baseline estimates for the current year
resulting from economic factors, technical factors, or
enacted legislation.''.
(d) Conforming Amendments.--(1) The heading of section
252(c) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended to read as follows: ``Eliminating a
Direct Spending Increase.--''.
(2) Paragraphs (1), (2), and (4) of section 252(d) of the
Balanced Budget and Emergency Deficit Control Act of 1985 are
amended by striking ``or receipts'' each place it appears.
(3) Section 252(e) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking ``or
receipts'' and by striking ``, outlays, and receipts'' and
inserting ``and outlays''.
(4) Section 254(c)(3) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended--
(A) in subparagraph (A) by striking ``net deficit increase
or decrease'' and by inserting ``net increase or decrease in
direct spending'';
(B) in subparagraph (B) by striking ``amount of deficit
increase or decrease'' and by inserting ``increase or
decrease in direct spending''; and
(C) in subparagraph (C) by striking ``a deficit increase''
and by inserting ``an increase in direct spending''.
SEC. 3. PROJECTIONS UNDER SECTION 257.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by inserting after paragraph
(6) the following new paragraph:
``(7) Emergencies.--New budgetary resources designated
under section 251(b)(2)(A) or 251(b)(2)(I) shall not be
assumed beyond the fiscal year for which they have been
enacted.''.
SEC. 4. EXCEPTION FOR OUTLAY COMPONENTS OF EXPIRING RECEIPTS
LEGISLATION.
Section 252(d)(4) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking ``and'' at
the end of subparagraph (A), by striking the period and
inserting ``; and'' at the end of subparagraph (B), and by
adding at the end the following new subparagraph:
``(C) extending provisions in the Economic Growth and Tax
Relief Reconciliation Act of 2001 or provisions in sections
101 through 104, section 202, or sections 301 and 302 of the
Jobs and Growth Tax Relief Reconciliation Act of 2003.''.
SEC. 5. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND
EMERGENCY DEFICIT CONTROL ACT OF 1985.
Part C of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended as follows:
(1) In section 250(a), strike ``SEC. 256. GENERAL AND
SPECIAL SEQUESTRATION RULES'' and insert ``Sec. 256. General
and special sequestration rules'' in the item relating to
section 256.
(2) In subparagraphs (F), (G), (H), (I), (J), and (K) of
section 250(c)(4), insert ``subparagraph'' after ``described
in'' each place it appears.
(3) In section 250(c)(18), insert ``of'' after
``expenses''.
(4) In section 251(b)(1)(A), strike ``committees'' the
first place it appears and insert ``Committees''.
(5) In section 251(b)(1)(C)(i), strike ``fiscal years'' and
insert ``fiscal year''.
(6) In section 251(b)(1)(D)(ii), strike ``fiscal years''
and insert ``fiscal year''.
(7) In section 252(b)(2)(B), insert ``the'' before ``budget
year''.
(8) In section 252(c)(1)(C)(i), strike ``paragraph (1)''
and insert ``subsection (b)''.
(9) In section 254(c)(3)(A), strike ``subsection'' and
insert ``section''.
(10) In section 254(f)(4), strike ``subsection'' and insert
``section'' and strike ``sequesterable'' and insert
``sequestrable''.
(11) In section 255(g)(1)(B), move the fourteenth
undesignated clause 2 ems to the right.
(12) In section 255(g)(2), insert ``and'' after the
semicolon at the end of the next-to-last undesignated clause.
(13) In section 255(h)--
(A) strike ``and'' after the semicolon in the ninth
undesignated clause;
(B) insert ``and'' after the semicolon at the end of the
tenth undesignated clause; and
(C) strike the semicolon at the end and insert a period.
(14) In section 256(k)(1), strike ``paragraph (5)'' and
insert ``paragraph (6)''.
(15) In section 257(b)(2)(A)(i), strike ``differenes'' and
insert ``differences''.
SEC. 6. CHANGE OF FISCAL YEAR.
(a) Fiscal Year To Begin November 1.--Section 1102 of title
31, United States Code, is amended by striking ``October 1''
and inserting ``November 1'' and by striking ``September 30''
and inserting ``October 31''.
(b) Title of Appropriation Acts.--Section 105 of title 1,
United States Code, is amended by striking ``September 30''
and inserting ``October 31''.
(c) Transition to New Fiscal Year.--(1) As soon as
practicable, the President shall prepare and submit to the
Congress--
(A) after consultation with the Committees on
Appropriations of the House of Representatives and the
Senate, budget estimates for the United States Government for
the period commencing October 1, 2005, and ending October 31,
2005, in such form and detail as he may determine; and
(B) propose legislation he considers appropriate with
respect to changes in law necessary to provide authorizations
of appropriations for that period.
(2) The Director of the Office of Management and Budget
shall provide, by regulation or otherwise, for the orderly
transition of all departments, agencies, and
instrumentalities of the United States Government and the
government of the District of Columbia from the use of the
fiscal year in effect on the date of enactment of this Act to
the use of the new fiscal year prescribed by section 1102 of
title 31, United States Code, (as amended by subsection (a)).
The Director shall prepare and submit to the Congress such
additional proposed legislation as he considers necessary to
accomplish this objective.
(d) Effective Date.--This section and the amendments made
by it (except for subsection (c)) apply to fiscal year 2006
and subsequent fiscal years.
SEC. 7. SUNSETTING OF DISCRETIONARY PROGRAMS AND UNEARNED
ENTITLEMENTS.
(a) Fiscal Year 2007.--Effective October 1, 2006,
authorizations for all programs (except earned entitlements)
shall terminate unless such programs are reauthorized after
the date of enactment of this Act and before October 1, 2006.
(b) Definitions.--For purposes of subsection (a), the term
``earned entitlement'' means an entitlement earned by service
or paid for in total or in part by assessments or
contributions such as social security, veterans' benefits,
retirement programs, and medicare.
SEC. 8. SPECIAL RULE FOR FISCAL YEAR 2005.
For purposes of ensuring the full funding of the
transportation guarantees in fiscal year 2005, the amounts
provided for fiscal year 2005 for discretionary new budget
authority and outlays allocated to the House Committee on
Appropriations as though under section 302(a) of the
Congressional Budget Act of 1974 shall be increased by not
less than $2,057,000,000 in budget authority and $634,000,000
in outlays.
The CHAIRMAN pro tempore. Pursuant to House Resolution 692, the
gentleman from Florida (Mr. Young) and a Member opposed each will
control 15 minutes.
The Chair recognizes the gentleman from Florida (Mr. Young).
Mr. YOUNG of Florida. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, I offer this substitute, which includes many similar
amendments to those we have already considered and others we will
consider, as a total substitute for the bill. However, the primary
reason I offer this substitute is because my friends on the Committee
on Rules did not give appropriators any time at all under the rule to
have a serious debate on our position relative to this bill. So we are
taking this approach.
Now, I want to announce to the Members that I agree that the budget
process needs to be changed and needs to be improved. And I am not
suggesting that my chairman, the gentleman from Iowa (Mr. Nussle), has
done anything wrong. It is just the fact that the current process is
not working, especially at the other end of the Capitol. But what I
intended to do in one of the amendments I submitted and the Committee
on Rules rejected, was to create a commission, a bicameral, bipartisan
group of Members of the House and the Senate, to sit down and study
this problem from all perspectives not just that of the Committee on
the Budget, or the Committee on Appropriations, or the Committee on
Ways and Means, or the authorizing committees--but from all
perspectives. Everybody has something good to offer if they are given
an opportunity.
But my amendment was not made in order, so we are not going to do
that here today. So what I intend to do, Mr. Chairman, is to develop a
bill on my own. And I intend to seek and solicit the ideas and
information from all of those committees that I have mentioned and then
I will propose, what I would consider to be, a very realistic budget
reform proposal. That is the way I intend to proceed.
Now, although I am going to withdraw this amendment, I think as
appropriators who are affected by this bill more than anyone else in
the Congress, that we do have a right to have some additional time to
state our views. So I will use this amendment to obtain that time.
Mr. Chairman, I yield 2 minutes to the gentleman from Kentucky (Mr.
Rogers), the chairman of the Subcommittee on Homeland Security.
Mr. ROGERS of Kentucky. Mr. Chairman, I thank the chairman for
yielding me this time.
I think we all share the zeal to reform the budget process. It is
broken.
[[Page H4993]]
But in that zeal, I want us to be sure we do not step on the
Constitution. One of the hallmarks of that great Constitution that has
sustained us so far is the separation of powers between the executive,
the legislative, and the judicial. It is the Congress, by the
Constitution, that has the prerogative and, in fact, the duty to
allocate the spending for the executive branch.
Nowhere in the Constitution does it allow the executive to tell the
Congress how the money should be spent, how much money should be spent.
The Congress enacts appropriation bills, spending bills, and the
executive executes those bills.
The budget resolution that is before us calls for statutory spending
limits. Now, I understand the motivation behind that is to try to get
something that will cap spending. We all want that. But the President
would have to sign such a budget resolution. That brings the executive
branch, OMB, into the process of negotiating a figure, a cap, for those
years. To me, that violates the separation of powers.
We would not be able to enact a budget resolution, a statutory cap,
independent of the White House because the President must sign the
bill; and, therefore, he will exact his impressions on that.
So I would hope that the chairman of my committee will follow through
on his promise just now to work on a process of bringing spending under
control. In the meantime, let us do not step on the U.S. Constitution
by requiring a statutory Presidentially signed spending cap.
The CHAIRMAN pro tempore. Who claims time in opposition to the
amendment?
Mr. NUSSLE. Mr. Chairman, I claim time in opposition, and I reserve
the balance of my time.
Mr. SPRATT. Mr. Chairman, I certainly have no objection to the
gentleman's withdrawing the amendment.
Mr. NUSSLE. Mr. Chairman, if the gentleman wishes to debate, I would
be happy to yield half the time in opposition to the gentleman from
South Carolina (Mr. Spratt).
The CHAIRMAN pro tempore. Without objection, the gentleman from South
Carolina (Mr. Spratt) will control half of the time claimed by the
gentleman from Iowa (Mr. Nussle).
There was no objection.
Mr. SPRATT. Mr. Chairman, I yield myself such time as I may consume.
As I was just informing the House, Mr. Chairman, I have, obviously,
no objection to what the gentleman wishes to do. I understand all of
his sentiments. This process needs to be fixed.
If the gentleman from Florida (Mr. Young) will remember, we had a
conference in 1997 when we did the balanced budget agreement of 1997.
Most of the budget principles, when they were affected, the
subcommittee chairmen of the Committee on Appropriations came. It would
be good if we could get together again, something like that, where you
do have interest from all of the House, and we could sit down and I
would hope in a nonpartisan way try to come up with a better process
than we have right now, because the process we have now is in the
ditch.
I would still have problems with the gentleman's amendment because it
does not provide for the full double-edged PAYGO. It has now a
provision in it that changes the fiscal year to November 1. I do not
quite understand why the gentleman would want to do that.
But, nevertheless, it is a moot point now. We appreciate the
gentleman's removing it from consideration. There are some ideas in
there I do agree with. For example, the gentleman would tell CBO not to
assume that expiring tax provisions are not going to be renewed. They
are most likely going to be renewed, and that is the way the projection
ought to be carried out, I think. And so I agree with a number of those
provisions like that in the gentleman's proposal.
Mr. Chairman, I reserve the balance of my time.
Mr. YOUNG of Florida. Mr. Chairman, I yield myself such time as I may
consume to tell the gentleman that I appreciate his comments. This is a
way for me to get time and for Members of my committee to get time, but
we are not going to pursue this amendment.
Mr. Chairman, I yield 2 minutes to the distinguished gentleman from
California (Mr. Lewis), chairman of the Subcommittee on Defense of the
Committee on Appropriations, who successfully passed his bill a couple
of days ago with 403 votes, and he reports to me just now that the
Senate has now passed it on a vote of 98 to 0.
{time} 1915
Mr. LEWIS of California. Mr. Chairman, I thank the gentleman from
Florida (Mr. Young) for yielding me this time.
Mr. Chairman, it is interesting for me to note that throughout the
history of the country, there was that kind of constant understanding
that the President in the arena of spending proposes and the Congress
disposes.
The President, the executive makes a decision about spending in a
specific area, and over time, the committees that affect that area make
a decision as to exactly what our policy should be and what direction
we should take by way of finally spending. Eventually that became the
President's budget proposing, and then us disposing.
Over the years, it seems the Congress finds itself spending a lot
more money than they had. A deficit began to accumulate over time.
People were frustrated with one another about who had the right kind of
priorities, et cetera. That led to specially a budget committee to help
provide advice and counsel to the big committees, the Committee on
Appropriations, the Subcommittee on Defense, the Committee on Ways and
Means, et cetera.
That was going to solve all of our problems, and indeed, about the
time I arrived, it was presumed that maybe that advice and counsel
might work. And, yet, the deficit continued to expand.
Not so shortly thereafter, the majority changed, and in the budget
process the whole committee made the decision to try to make sense out
of an annual budget balance. And, indeed, that led to our putting
voluntary limitations within the process using the budget to do that,
and pretty well the Committee on Appropriations has stuck to those
limits. And it has worked reasonably well, even though at times of war,
like currently, we have great difficulty with that. Nonetheless,
overall, it worked pretty well.
There seems to be a bit of stumble here in recent years, people not
being happy with the way that process has worked for them in terms of
priority, maybe not cutting spending as much as some like versus
others, but as of this moment, we are at war. As of this moment, this
bill includes statutory caps, which not only affects the President's
budget, but has the President in a position to renegotiate again,
essentially giving the administration a second bite at the apple. That
concerns me; and, therefore, the chairman is absolutely correct. We
need to go at this one more time. And I appreciate my colleague
yielding.
Mr. YOUNG of Florida. Mr. Chairman, I would like to inquire of the
gentleman from Iowa (Mr. Nussle), the chairman of the Committee on the
Budget, if he intends to use any time, and if so, maybe we could
alternate.
Mr. NUSSLE. Mr. Chairman, I only have one speaker, and that is to
close.
Mr. YOUNG of Florida. Mr. Chairman, I yield 2 minutes to the
gentleman from New York (Mr. Walsh), the chairman of the Subcommittee
on VA, HUD and Independent Agencies.
Mr. WALSH. Mr. Chairman, we all know from our study of history that
the Founding Fathers provided the executive, legislative and judicial
branch with powers, separating powers. Within the Legislature, they
gave the House the power of the purse. We all know in our dealings with
the Senate that they have certain powers and abilities that we do not
have, but we have the purse.
Now, we already tried once to give part of that power to the
Executive Branch. We passed a line-item veto, and the Supreme Court
saved us from ourselves. I suspect that if any legislation that passed
this Congress that allowed us to submit to mandatory or statutory caps
on spending, the Supreme Court would do the same thing again. We have
got to stop trying to hand off our responsibilities to someone else to
save ourselves from ourselves. What we are seeing is Band-Aids laid
over an elegant but simple process, statutory budget caps, line-item
vetos, automatic continuing resolutions.
My goodness, New York State, my State, passed automatic continuing
[[Page H4994]]
resolutions. They have not passed a budget on time in 20 years. They
even went so far as to say we will not pay ourselves until we pass a
budget, and even that did not work. We have to have some discipline. We
have the responsibility and have had it for 150 years to deal with
these priorities.
In 1974, when we passed a budget resolution, the Budget Reform Act,
the deficits have gone through the roof since that occurred. I would
submit, with all due respect to the Committee on the Budget, the
simplest and most elegant solution is to eliminate the Committee on the
Budget and take the discretionary spending and get control of it by
making mandatory spending discretionary. We cannot continue on allowing
mandatory spending to go through the roof.
I appreciate the difficulty the job the Committee on the Budget has.
I appreciate the effort that they have made, but we cannot continue to
overlay Band-Aids on a system that does not work.
So I would urge to reject the underlying bill and support the
chairman's amendment if he retains it.
Mr. YOUNG of Florida. Mr. Chairman, I yield 1 minute to the gentleman
from Ohio (Mr. Hobson), the distinguished chairman of the Subcommittee
on Energy and Water Development, whose bill will be on the floor
tomorrow.
(Mr. HOBSON asked and was given permission to revise and extend his
remarks.)
Mr. HOBSON. Mr. Chairman, I have been a member of the Committee on
the Budget when we balanced the budget. I was the Speaker's delegate to
the budget, so I know the difficult problems that can go on in the
Committee on the Budget, but I think this so-called budget reform does
harm to our process. We have a process that we need to follow and
maintain. We cannot abrogate our responsibilities to make those hard
choices here on the floor by giving the President, or whoever the
administration is, three bites at the apple.
Recently I have had experience with this. We passed a bill in the
House that solved the problem for two Members that had been going on
for 14 years. The bill was signed by the President of the United
States. OMB decided they were not going to follow it. They just were
not going to do it. So we have had to go back and do it again. I do not
think we should give up our process to people like that when we are
dealing with this.
There are reforms to discretionary spending enforcements that should
be considered in the broader reforms, such as meaningful controls on
the growth of mandatory programs and putting the Congressional
authorization process back on track. I would urge the defeat of the
underlying bill.
Mr. YOUNG of Florida. Mr. Chairman, I yield 2 minutes to the
gentleman from Ohio (Mr. Regula), chairman of the Subcommittee on
Labor, Health and Human Services, Education and Related Agencies.
(Mr. REGULA asked and was given permission to revise and extend his
remarks.)
Mr. REGULA. Mr. Chairman, the gentleman from Florida and I were
probably the only two Members who were here when the Budget Committee
was created and the budget process that we are talking about today. We
had at that time great hopes that this would accomplish the goals of
achieving fiscal responsibility. I think it is time that we take a look
at this process to see if there are changes that can be made. I, for
one, think that we might take a look at a 2-year budget as a
possibility so that we can bring more certainty to the process. Because
what we are doing is setting the parameters for those who execute the
decisions that we make in terms of policy. But keep in mind, we always
say this is the people's House. This is not the Office of Management
and Budget's House. That is what we are talking about here, whether we
would give OMB the ability to establish the priorities for the people.
That is our job. That is why we get elected.
That is why Daniel Webster, if you read the statement above the
Speaker's chair said, ``Let us develop the resources of our land, call
forth its powers, built up its institutions, promote all its great
interests and see whether we also in our day and generation may not
perform things worthy to be remembered.'' Daniel Webster was a Member
of the House. He was speaking in terms of the people's House. I think
we have a responsibility to make these priority decisions. The
subcommittee I chair is second only to defense in terms of funding
levels and it is the one that touches the lives of 280 million
Americans, providing funding for education, health research, and labor.
We have dozens of hearings to give the people a chance to tell us what
their priorities are and what is important in their lives. That is why
it is essential that we have the responsibility for establishing
through the budget process the broad parameters of spending, but more
precisely the specific appropriations that reflect the priorities of
the people should remain in the people's House.
If we truly want to make this the people's House and keep it that
way, I think we should retain control of setting those priorities.
Mr. YOUNG of Florida. Mr. Chairman, I yield 1 minute to the gentleman
from New Jersey (Mr. Frelinghuysen), chairman of the Subcommittee on
the District of Columbia.
Mr. FRELINGHUYSEN. I thank the gentleman for yielding me this time.
Mr. Chairman, I also rise in support of the Young amendment, but
recognize, like others before me, that the underlying bill violates the
separation of powers devised by the Framers of the Constitution, and
our system of shared power that we know from our history books as
checks and balances, and that even the Young amendment cannot salvage
the Budget Enforcement Act from its fatal flaws.
Mr. Chairman, we are a Nation at war fighting a global war on terror.
We are a country with a growing, yet evolving economy and changing
national priorities. This Congress, this Appropriations Committee, this
Budget Committee, needs the flexibility to address priorities on an
annual basis. We need the ability to deal with the challenges and
opportunities as they arise on a State-by-State, district-by-district,
month-by-month, year-to-year basis. This Budget Enforcement Act makes
it almost impossible to do it.
Mr. YOUNG of Florida. Mr. Chairman, I yield 1 minute to the
distinguished gentleman from Kansas (Mr. Tiahrt), a very important
member of the Committee on Appropriations.
Mr. TIAHRT. I thank the gentleman from Florida for yielding me this
time.
Mr. Chairman, the problem that we are facing tonight is the control
of spending, how do we control spending and reduce the Federal deficit.
The easy target is the appropriations process because that is where we
spend most of our time. We develop 13 bills for discretionary spending
and we focus on all 13. But the real culprit is mandatory spending and
off-budget items.
If we look at Medicare which is mandatory spending, for example, it
grew 14 percent last year, much faster than the rate of inflation. Yet
we do not have nearly the time focused on Medicare that we do on these
13 appropriations bills. We also have the highway bill coming up, TEA-
LU, which is moving towards $318 billion over the next 6 years. That is
going to exceed what the trust fund provides. Where will that excess
money come from? It will come out of the appropriations process for
discretionary spending and once again, this burden will be there and
the blame once again will be placed on the appropriations process.
If we are going to control spending, we are going to have to learn
how to focus on mandatory spending as well as off-budget items, because
the appropriations process has all 13 appropriation bills submitted
within budget. It is mandatory where the real problem is, and we are
failing to deal with it.
Mr. YOUNG of Florida. Mr. Chairman, I yield myself the balance of my
time.
Mr. Chairman, let me say that this appropriations committee is made
up of very good Members of both parties. They work hard. They are here
whether the House is in session or whether the House is not in session.
This committee passes 13 appropriations bills every year, and two to
three supplementals. Then we go to conference with the other body, and
despite the suggestion that the appropriations process is broken, since
I have had the privilege of chairing this committee, we have gotten all
of those
[[Page H4995]]
bills done eventually, some sooner and some later. And we have to work
with real numbers. We cannot assume numbers. We cannot pick a number
out of the air. We have to work with real numbers and with real laws.
The chairman of the Committee on the Budget should understand the
problems we have in moving 15 bills through conference because he has
one budget resolution to move and he has trouble getting that done, not
by any fault of his, but the fault of the other body.
I know I am not supposed to say that, but nevertheless it is the
fact. That information is not classified.
The Appropriations Committee is a very good committee. It works hard
and it produces good legislation. I would say that just in the last
fiscal year, your Appropriations Committee defeated amendments that
would have increased spending by $18 billion. Most of those amendments
sounded really good. They would have been nice to vote for. But we did
not have the money. We were committed to staying within the budget and
we did. I would also say that it is the mandatory spending programs
that we have no control over. We do not deal with them and it is
mandatory spending that is causing this deficit to rise higher and
higher and higher.
I would suggest that just one example: we had a colloquy today
between the chairman of the Committee on Transportation and
Infrastructure and the chairman of the Committee on the Budget on
firewalls for the transportation bill, TEA-LU. I support that bill. We
need to improve our infrastructure and our bridges and our highways in
our communities. The problem, and what they never really admit and
concede, is that there are guarantees in that bill. If the trust funds
do not make up the guarantees, the appropriations committee has to
swallow the guarantees. That means we have to take it away from
education or health benefits or something else. The 302(a)s should be
adjusted if we are saddled with a mandatory spending of this kind.
Mr. Chairman, I yield back the balance of my time.
{time} 1930
Mr. NUSSLE. Mr. Chairman, I yield myself such time as I may consume.
First of all, let me say this has been a fascinating thing to listen
to. Let me start by saying ``methinks thou doth protest'' just a little
bit too much.
It is fascinating to me that in the middle of the appropriations
process, all of these very good friends of mine, who are every one from
the Committee on Appropriations chairman himself to the, what are often
time around here called cardinals, subcommittee Chairs, who have the
job of managing these appropriation bills, seem to find the time to
come to the floor for this somewhat innocuous debate today. It is kind
of interesting they spent their entire afternoon on the floor concerned
about this process.
And I would suggest that it is not because the Committee on the
Budget is where everyone is pointing the fingers. The Committee on the
Budget did not cause the deficits that we are faced with here today any
more than the Committee on Appropriations did, any more than the
Committee on Ways and Means did, any more than the Republicans or the
Democrats or the President or the Congress did. We spend so much time
blaming other people and pointing fingers around here that we forget
sometimes to look in the mirror as to how this all happened. And
everyone is going to have their own version. I am not going to bore
everyone with mine. But if they do not remember a couple of things that
are important over the last few years, they are really missing the
point.
We created a budget in 2001, and we had a surplus on September 10 of
2001. And then we all know what happened the next day. And thank
goodness we had a budget, and thank goodness we had the flexibility in
the budget to go into a room and say guess what, guys, the jig is up.
We had to create a new Department of Homeland Security. I was in the
room when the bidding began on how much money to send to New York. Do
my colleagues know what the opening bid was? I will never forget it. I
will never forget the way the meeting went. It started by someone
mentioning that we might have to send $6 billion up to New York. Does
the gentleman from Florida (Chairman Young) remember that? And by the
end of a half hour meeting, the number was $40 billion. We went from 6
to 40 in one half hour.
Was it the right thing to do? Yes. Did the budget allow it to happen?
Yes. Did the Committee on Appropriations cause it to happen? Yes. Did
the American people support it? Yes. Did it add to the deficit? Yes.
And thank goodness we have got the full faith and credit and the great
economy that can bounce back from something like that so that we can do
it.
So do not come here today, please, I beg of my colleagues, and blame
the Committee on Appropriations for the deficit, or as I heard a
gentleman actually suggest not too long ago that maybe it was because
of the Budget Committee that we had a deficit. I mean, my goodness, let
us be real about this.
The next thing I would like to say is that there was a gentleman who
mentioned a moment ago about a perceived spending problem. Okay. If
that is how he would like to refer to it as a perceived spending
problem, that is fine. But would he please go home and talk to his
constituents, because if they are like the constituents I represent in
Iowa, there is no perception about it. They are telling me there is a
spending problem in Washington that we have got to get a handle on.
And, yes, Mr. Chairman, it is on the appropriations side, and 60
percent of it is also on the mandatory side. And I have said that until
I am blue in the face. Unfortunately, a lot of the people who spoke
have now left, and they never get the benefit of hearing me say that I
do not blame the Committee on Appropriations for everything.
Last but not least, let me just mention the offer that the very
distinguished gentleman from Florida, who is an excellent friend of
mine, and I am honored to have the opportunity to even stand next to
him on the floor and debate, the gentleman from Florida does an amazing
job under extremely difficult circumstances, and he is right; I only
have it to do this once. I have only got to pass one budget. He has to
do it 13 times. Yes, that is heavy lifting. No question about that, and
I respect that.
But having said that, to suggest we can come together and come to an
agreement on a new process and leave out the Committee on
Appropriations and to suggest this does not have at least one small
part to do with how the Committee on Appropriations operates or how
Committee on Appropriations' bills come to the floor, that is where we
break down. It is when the Committee on Ways and Means says, You can do
that, but just do not include me; or the Committee on Transportation
and Infrastructure says, as the gentleman said, Do for everything but
what we firewall off; or the Committee on Appropriations says, Blame it
on the Budget Committee, our appropriations process should not be part
of this discussion.
If we are going to have this discussion, we all have to have the
discussion, and we have got to put all our rules on the table. We
cannot say, just say separation of powers say that we have the right to
do this. And let me end with that.
There was a gentleman who came to the floor who said that this
Committee on the Budget and the budget process was created to provide
advice. No, it was not. It was created because back in the 1960s, there
was absolutely no coordination during the 5 months Congress was in
session. That is it. During the 5 months Congress was in session, the
Committee on Appropriations and the Committee on Ways and Means, who
managed revenues and appropriations, never talked to each other. And at
the end of the year, maybe miraculously in a good year, there might be
a surplus, but most of the time there were deficits. There was never a
coordination.
And so the main reason why this was established was to reconcile
those two processes, and that is why we have something now called the
reconciliation process. And I overheard the gentleman and he is right.
When was the last time we did that? We do not do it anymore. And that
is why the process is broken. Because Members have been taken out of
the process. The political part of this, small ``p,'' has been taken
[[Page H4996]]
out, and we are trusting that a process can get us to a result. And at
the end of the day, I have got to tell the Members we can monkey with
this process all day long until we are blue in the face. It still comes
back to how I opened the debate. It is still about how we as individual
Members want to operate in here.
If the gentleman from South Carolina (Mr. Spratt) and I want to argue
for the next 10 years and have differences of opinion, we will never
come together. If for some miraculous reason we could sit down one day
and come up with a joint list of priorities, it would work. That is
what it comes down to, Members working together. The process cannot
supplant that. It still has to be Members making political, small
``p,'' decisions about how to represent their districts in this
Congress.
So I respect everything that my friends from the Committee on
Appropriations have said, but I would just remind them that ``methinks
thou doth protest'' just a little bit too much. This is not about them.
This is about us.
The CHAIRMAN pro tempore (Mr. Bass). The time of the gentleman from
Iowa (Mr. Nussle) has expired.
Mr. SPRATT. Mr. Chairman, I yield the balance of my time to the
gentleman from Florida (Mr. Young) and ask unanimous consent that he be
allowed to control that time.
The CHAIRMAN pro tempore. Is there objection to the request of the
gentleman from South Carolina?
There was no objection.
The CHAIRMAN pro tempore. The gentleman from Florida (Mr. Young) has
6 minutes remaining.
Mr. YOUNG of Florida. Mr. Chairman, I thank the gentleman for
yielding me this time. We were rather rushed in trying to get some of
our speakers to the floor.
Mr. Chairman, I yield 3 minutes to the distinguished gentleman from
Georgia (Mr. Kingston), chairman of the Legislative Subcommittee of the
Committee on Appropriations.
Mr. KINGSTON. Mr. Chairman, I thank the gentleman for yielding me
this time.
I rise in opposition to the Nussle budget reform proposal, but I do
so with great respect for the Committee on the Budget and his
leadership on that, and I want to say that this is the proper
discussion and a discussion which we should be having.
As a member of the Committee on Appropriations, I see it a little bit
differently. I think that we are both going towards the same goal, the
Committee on the Budget and the Committee on Appropriations; yet we are
taking a different course. What our concern is about is the so-called
statutory caps in the Nussle proposal give the executive branch, the
President, three different bites of the apple: one when he submits the
budget, the next using his veto pen, and then another one forcing his
will on Congress. He will very much be at the table. And as our
Founding Fathers established the separation of powers, I believe that
there should be a little more than a philosophical firewall between the
executive and the legislative branches. That is our view on it.
I believe, as an alternative, what the Committee on Appropriations
would like to see is a little more cross-pollination between the
Committee on the Budget and the Committee on Appropriations and perhaps
the Committee on Ways and Means.
I come from the State legislature. I was a member of the Ways and
Means Committee of the Georgia legislature for 8 years, and it seemed
ridiculous to me when I got here that we split up our budget process
into three dynamic committees all with a point of view and yet none of
them with the franchise and the final responsibility of getting the job
done at the end of the day.
I would like to see us work not just more closely with the Committee
on the Budget but actually have some voting influence on each other,
and I think there are some things that we can discuss in that vein.
I am also a supporter of a bill by the gentleman from Kansas (Mr.
Tiahrt) that would set up a BRAC-type Base Realignment and Closure
Commission for spending that would sort of pick up some pieces of some
of the Grace Commission thoughts, but something of that nature where we
could take a step outside the process and say, okay, how do we get this
together?
Another alternative is the Istook Balanced Budget Amendment, which I
have supported. We need to get that on the floor. We need to get the
other body to pass it and the President to put it into law.
We also need to have good old-fashioned fiscal discipline. As the
chairman of the Legislative Subcommittee, I am proud I have worked with
the gentleman from Virginia (Mr. Moran). We brought in a level funding
bill this year; and in addition to that, we had a lot of other reforms,
some outsourcing, some privatization, some reduction of committee
spending and agency spending, some cuts, real cuts. Not just reductions
in the projected increase, but less money than last year. We did that
after a lot of debate back and forth. We want the other body to hold
the spending on this. I believe that we as a legislative body could
have even more cuts. We offered other amendments for cuts, and they
were not approved by the committee. But perhaps on the floor we can get
those done.
We are in the same church. We are only in a different pew when it
comes to controlling spending.
Mr. YOUNG of Florida. Mr. Chairman, I yield 2 minutes to the
gentleman from Texas (Mr. Culberson), who is one of the newer, but one
of the dynamic, members of the Committee on Appropriations.
Mr. CULBERSON. Mr. Chairman, I want to focus in this 2 minutes on the
merits of the gentleman from Florida's (Chairman Young) proposal which
he is withdrawing tonight so that he can work with the members of the
Committee on the Budget, Members of this House, and listen to all of
the best advice that he can gather to come up with some substantive and
meaningful reform of our appropriations process and the budget process.
We all recognize the Committee on Appropriations only controls about
20 percent of Federal spending. The gentleman from Florida's (Chairman
Young) proposal, which really merits our support, has laid out a system
to shut down or sequester mandatory spending in the event the Office of
Management and Budget baseline estimates are exceeded because Congress
has passed more mandatory spending programs. And that is where the bulk
of the problem lies, because Congress continues to pass programs that
require us to spend more money.
The gentleman from Florida's (Chairman Young) bill would also
establish baseline estimates that do not include emergency spending.
Obviously, in time of war emergency, we need to move bills through. We
are going to spend money that we did not contemplate. The chairman's
bill would also set out a change of start date of the fiscal year to
November 1.
But the part that I am particularly pleased about and excited to see,
the chairman has proposed sunsetting of all Federal programs, except
earned entitlements, effective October 1 of 2006 unless reauthorized.
And I know the chairman, coming out of the State legislature in
Florida, is interested in listening to and hearing advice from our
State legislators. The American Legislative Exchange Council is meeting
in Seattle this summer, a very good organization made up of State
legislators whom we need to listen to and talk to about how we can help
them balance their State budgets and how they can help us with their
best ideas on balancing the Federal budget.
I believe the gentleman from Florida's (Chairman Young) amendment,
which he will turn into a bill, merits our support. I look forward to
working with him, as I know he will work with the Committee on the
Budget and all Members of this Congress to bring together the best
ideas so we can truly bring spending under control.
Mr. YOUNG of Florida. Mr. Chairman, I yield myself the balance of my
time.
{time} 1945
Mr. Chairman, again I want to thank the gentleman from South Carolina
(Mr. Spratt) for giving me the advantage of the additional time he had
allocated to him. We have tried to use it in a constructive way.
I also want to thank the gentleman from Iowa (Chairman Nussle) for
the good debate and for the understanding, that he has exhibited, of
our concerns. He said this is not about the appropriators or the
Committee on the Budget.
[[Page H4997]]
He said it is about us, and he is right. It is about the entire
Congress, and that is what we are concerned about today: the
prerogatives, the privileges and the constitutional responsibilities of
the Congress of the United States.
So I want everybody to know that the gentleman from Iowa (Chairman
Nussle) and I are still very good friends. We were before this started;
we will be after the final vote. We just tend to have some honest
differences; and that is what this place is all about--to air the
differences. If we did not do that, then I would like to be in charge
and we would do everything my way.
But that is not the way it happens. That is why we have this great
debating society in the United States House of Representatives.
I would say to the gentleman from Iowa (Chairman Nussle), while he
was walking down the aisle, that I complimented him for the conduct of
this debate, which I appreciate very much.
Mr. Chairman, under the previously agreed to unanimous consent
request, I withdraw this amendment.
The CHAIRMAN pro tempore (Mr. Bass). The amendment is withdrawn.
It is now in order to consider amendment No. 6, printed in House
Report 108-566.
Amendment No. 6 Offered by Mr. Kirk
Mr. KIRK. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 6 offered by Mr. Kirk:
At the end, add the following new section:
SEC. . ANNUAL CBO REPORTS ON ENTITLEMENT SPENDING.
Section 202(e) of the Congressional Budget Act of 1974 is
amended by adding at the end the following new paragraph:
``(4) On or before February 15 of each year, the Director
shall submit to the Committees on the Budget of the House of
Representatives and the Senate, a report for the fiscal year
ending on September 30 of the preceding year, with respect to
entitlement spending, including (A) a comparison of actual
spending for entitlements, on an account by account basis,
with projected spending for such entitlements assumed in the
concurrent resolution of the budget for that fiscal year and
(B) an identification of those entitlements for which the
actual spending exceeded the projected spending.''.
The CHAIRMAN pro tempore. Pursuant to House Resolution 692, the
gentleman from Illinois (Mr. Kirk) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentleman from Illinois (Mr. Kirk).
Mr. KIRK. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, we have all heard of forecasting to estimate future
spending by our government. Our experience with forecasting the cost of
entitlement spending shows wild inaccuracies.
A classic example comes from forecasts we used on the spending under
a new entitlement program to care for patients suffering from kidney
failure. Under estimates before our Congress, Representatives were told
90,000 patients would enroll for taxpayer-funded dialysis by 1995.
90,000 patients enrolled in this new Federal entitlement program by
1985, 10 years earlier than expected. By 1995, there were 239,000
patients in the program, not the 90,000 estimated. Today, in fact,
there are 400,000 patients in this program, so spending is wildly above
that which was estimated when the program was voted on before this
House.
My point with the amendment before us is simple: we need better
forecasts before we change or improve entitlement spending programs. We
would do that if we started a process which every budget analyst fears,
and that is called backcasting. Backcasting by the Congressional Budget
Office would require analysts to look at the actual spending over the
previous year, with an eye to reviewing the actual errors they made in
the estimates used the previous year.
Backcasting would give our budget analysts a grade. It would show the
Congress clearly where actual spending of a program differed from the
assumptions used in the previous forecast.
Backcasting is now a standard procedure used in nearly every
investment house on Wall Street, and every American family with an IRA
reviews the estimates of promised performance by their mutual funds and
then compares it to what actually happened with their retirement nest
egg.
I think it is about time we use this time-tested procedure to improve
estimates used to prepare our budget using a rigorous analysis,
comparing our previous estimates and the errors made compared to our
actual budget experience.
This amendment comes just in time for the budget history of the
United States. Right now, over 60 percent of our budget is spent
through entitlement spending. Soon 70 percent of the budget will be
spent in entitlement spending. This means that the estimates we use to
set benefits and beneficiaries are not just important; they are crucial
to the long-term financial strength of the United States.
We make vital promises to America's seniors. We must use advanced
forecasting and backcasting to make sure that the promises we make to
America's seniors are promises that taxpayers can afford to keep.
I appreciate the support of the gentleman from Iowa (Chairman Nussle)
on this amendment and the lack of opposition from our senior, very
distinguished ranking Democratic member on this.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN pro tempore. Who seeks time in opposition?
Mr. SPRATT. Mr. Chairman, I claim the time in opposition. I should
claim it before the gentleman completely commits me to the support of
his amendment.
The CHAIRMAN pro tempore. The gentleman from South Carolina (Mr.
Spratt) is recognized for 5 minutes.
Mr. SPRATT. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I have no great objection to it, it is true, simply
because I think CBO already does this. You get every year the economic
forecast and budget outlook. You get one in January. You get the
President's budget again. There will be one coming up in August. The
levels of entitlement spending are there. It may not be in quite the
format you anticipate here, but if you want to go back to the previous
year's volume and lay out what spending was that year, you can find
projected levels in the baseline. It can be done.
Mr. Chairman, I will not object to this. I will accept it. But I
honestly think it is redundant to what CBO is already doing and already
providing.
Mr. KIRK. Mr. Chairman, I yield such time as he may consume to the
gentleman from Iowa (Mr. Nussle), my distinguished chairman.
Mr. NUSSLE. Mr. Chairman, my only purpose for asking for the time,
like the gentleman from South Carolina (Mr. Spratt), I have no
objection to this at all. It sounds not only like a good idea, but
something I think we do already, but maybe not in the detail the
gentleman from Illinois is looking for.
What I would certainly offer to do with the gentleman is to approach
CBO in a bipartisan way and see if we cannot work out some way to
achieve what the gentleman is asking for, possibly even without the
necessity of having an amendment to the budget to do that. But the
gentleman can proceed how he would like. If the gentleman wants more
detail so that we can have more information about the accuracy, I am
all for that. That may be something that the gentleman from South
Carolina and I can do.
Mr. SPRATT. Mr. Chairman, will the gentleman yield?
Mr. NUSSLE. I yield to the gentleman from South Carolina.
Mr. SPRATT. Mr. Chairman, that is an excellent idea. The three of us
can sit down with CBO and our staff and come up with the information
the gentleman wants, and we will not be bound by statutory language,
but by a good-faith commitment to get it done.
Mr. KIRK. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I would urge adoption of the amendment. You can imagine
CBO analysts do not exactly want to be forced to go back and compare
exactly how actual performance deviated from the estimate that they
provided.
Mr. NUSSLE. Mr. Chairman, if the gentleman would yield further, since
it is possible this bill may not become law, if that is possible, and I
have heard that, why do we not work on this anyway as a project. I
think it would be important to get that information.
Mr. KIRK. Mr. Chairman, reclaiming my time, absolutely. You can
imagine
[[Page H4998]]
CBO analysts are somewhat reticent for us to formally go back and see
how their estimates varied.
I urge adoption of the amendment.
The CHAIRMAN pro tempore. The time of the gentleman from Illinois
(Mr. Kirk) has expired.
Mr. SPRATT. Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore. The question is on the amendment offered by
the gentleman from Illinois (Mr. Kirk).
The question was taken; and the Chairman pro tempore announced that
the ayes appeared to have it.
Mr. KIRK. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Illinois
(Mr. Kirk) will be postponed.
The CHAIRMAN pro tempore. It is now in order to consider amendment
No. 7 printed in House Report 108-566.
Amendment No. 7 Offered by Mr. Ryan of Wisconsin
Mr. RYAN of Wisconsin. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 7 offered by Mr. Ryan of Wisconsin:
At the end, add the following new sections:
SEC. . JOINT BUDGET RESOLUTIONS.
(a) Definitions.--Paragraph (4) of section 3 of the
Congressional Budget Act of 1974 is amended to read as
follows:
``(4) the term `joint resolution on the budget' means--
``(A) a joint resolution setting forth the congressional
budget for the United States Government for a fiscal year as
provided in section 301; and
``(B) any other joint resolution revising the congressional
budget for the United States Government for a fiscal year as
described in section 304.''.
(b) Joint Resolution on the Budget.--(1) Section 301(a) of
the Congressional Budget Act of 1974 is amended by striking
``concurrent resolution'' each place it appears including in
the caption and inserting ``joint resolution''.
(2) Section 301(b) of such Act is amended by striking
``concurrent resolution'' each place it appears including in
the caption and inserting ``joint resolution''.
(3) Section 301(c) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(4) Section 301(e) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(5) Section 301(f) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(6) Section 301(g) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(7) Section 301(h) of such Act is amended by striking
``concurrent resolution'' and inserting ``joint resolution''.
(8) Section 301(i) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(9) The section heading of section 301 of such Act is
amended by striking ``ANNUAL ADOPTION OF CONCURRENT'' and
inserting ``ANNUAL ADOPTION OF JOINT''.
(10) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by striking ``Annual adoption of the concurrent'' in
the item relating to section 301 and inserting ``Annual
adoption of the joint''.
(11) Section 302 of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(12) Section 303 of such Act, including the heading, is
amended by striking ``concurrent resolution'' each place it
appears and inserting ``joint resolution''.
(13) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by striking ``Concurrent'' in the item relating to
section 303 and inserting ``Joint''.
(14) Section 304 of such Act is amended by striking
``concurrent resolution'', including in the heading, each
place it appears and inserting ``joint resolution''.
(15) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by striking ``Concurrent'' in the item relating to
section 304 and inserting ``Joint''.
(16) Section 305 of such Act is amended by striking
``concurrent resolution'', including in the heading, each
place it appears and inserting ``joint resolution''.
(17) Section 308 of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(18) Section 310 of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(19) Section 311 of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
SEC. . BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE
CONSIDERED; FALL-BACK PROCEDURES IF PRESIDENT
VETOES JOINT BUDGET RESOLUTION.
(a) Amendments to Section 302.--Section 302(a) of the
Congressional Budget Act of 1974 is amended by striking
paragraph (5).
(b) Amendments to Section 303 and Conforming Amendments.--
(1) Section 303 of the Congressional Budget Act of 1974 is
amended--
(A) in subsection (b), by striking paragraph (2), by
inserting ``or'' at the end of paragraph (1), and by
redesignating paragraph (3) as paragraph (2); and
(B) by striking its section heading and inserting the
following new section heading: ``consideration of budget-
related legislation before budget becomes law''.
(2) Section 302(g)(1) of the Congressional Budget Act of
1974 is amended by striking ``and, after April 15, section
303(a)''.
(3)(A) Section 904(c)(1) of the Congressional Budget Act of
1974 is amended by inserting ``303(a),'' before
``305(b)(2),''.
(B) Section 904(d)(2) of the Congressional Budget Act of
1974 is amended by inserting ``303(a),'' before
``305(b)(2),''.
(C) Subsection (e) of section 904 of the Congressional
Budget Act of 1974 is repealed.
(c) Expedited Procedures Upon Veto of Joint Resolution on
the Budget.--(1) Title III of the Congressional Budget Act of
1974 is amended by adding after section 315 the following new
section:
``expedited procedures upon veto of joint resolution on the budget
``Sec. 316. (a) Special Rule.--If the President vetoes a
joint resolution on the budget for a fiscal year, the
majority leader of the House of Representatives or Senate (or
his designee) may introduce a concurrent resolution on the
budget or joint resolution on the budget for such fiscal
year. If the Committee on the Budget of either House fails to
report such concurrent or joint resolution referred to it
within five calendar days (excluding Saturdays, Sundays, or
legal holidays except when that House of Congress is in
session) after the date of such referral, the committee shall
be automatically discharged from further consideration of
such resolution and such resolution shall be placed on the
appropriate calendar.
``(b) Procedure in the House of Representatives and the
Senate.--
``(1) Except as provided in paragraph (2), the provisions
of section 305 for the consideration in the House of
Representatives and in the Senate of joint resolutions on the
budget and conference reports thereon shall also apply to the
consideration of concurrent resolutions on the budget
introduced under subsection (a) and conference reports
thereon.
``(2) Debate in the Senate on any concurrent resolution on
the budget or joint resolution on the budget introduced under
subsection (a), and all amendments thereto and debatable
motions and appeals in connection therewith, shall be limited
to not more than 10 hours and in the House such debate shall
be limited to not more than 3 hours.
``(c) Contents of Concurrent Resolutions.--Any concurrent
resolution on the budget introduced under subsection (a)
shall be in compliance with section 301.
``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a
concurrent resolution on the budget described in subsection
(a) is agreed to, then the aggregates, allocations, and
reconciliation directives (if any) contained in the report
accompanying such concurrent resolution or in such concurrent
resolution shall be considered to be the aggregates,
allocations, and reconciliation directives for all purposes
of sections 302, 303, and 311 for the applicable fiscal years
and such concurrent resolution shall be deemed to be a joint
resolution for all purposes of this title and the Rules of
the House of Representatives and any reference to the date of
enactment of a joint resolution on the budget shall be deemed
to be a reference to the date agreed to when applied to such
concurrent resolution.''.
(2) 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 315
the following new item:
``Sec. 316. Expedited procedures upon veto of joint resolution on the
budget.''.
(e) Limitation on Contents of Budget Resolutions.--Section
305 of the Congressional Budget Act of 1974 is amended by
adding at the end the following new subsection:
``(e) Limitation on Contents.--(1) It shall not be in order
in the House of Representatives or in the Senate to consider
any joint resolution on the budget or any amendment thereto
or conference report thereon that contains any matter
referred to in paragraph (2).
``(2) Any joint resolution on the budget or any amendment
thereto or conference report thereon that contains any matter
not permitted in section 301(a) or (b) shall not be treated
in the House of Representatives or the Senate as a budget
resolution under subsection (a) or (b) or as a conference
report on a budget resolution under subsection (c) of this
section.''.
The CHAIRMAN pro tempore. Pursuant to House Resolution 692, the
gentleman from Wisconsin (Mr. Ryan) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentleman from Wisconsin (Mr. Ryan).
Mr. RYAN of Wisconsin. Mr. Chairman, I yield myself 2 minutes.
[[Page H4999]]
Mr. Chairman, let me just briefly explain what this amendment does.
What this does is this elevates the budget resolution to a level of a
law.
Specifically, this would change the current nonbinding concurrent
budget resolution into a joint resolution, which would give the force
of law when signed by the President. This would encourage the President
to get involved early in the process, instead of having this typical
annual brinksmanship that we have in the budget process at the end of
the year, so that we can settle on the numbers between the other body,
this body, and the White House and move on to good legislation.
A joint resolution would be binding and have the force of law so that
both the Congress and the White House would work these issues out in
the beginning of the annual year.
The simplicity of this budget resolution makes agreements easier to
reach because negotiations will be forced early on in the process.
I would like to go through how this would work. I have a chart that
makes it easier for me to explain this.
First, like we have anytime, the President submits his budget. Then
Congress would pass a joint budget resolution. Then the question is
whether the President would sign it or not. If with those negotiations
the President then signs that joint budget resolution, then Congress
passes its appropriations, its reconciliation, its tax and entitlement
bills and its conference reports, and the President signs those bills
into law. Very easy, very clear process.
If, for example, the President does not sign that joint budget
resolution, there is a fallback provision similar to what we have
today, where it would go back to Congress and Congress would adopt a
concurrent resolution, much like we have right now.
For example, this year, where we actually do not have a concurrent
resolution in place because we could not get one through the other
body, we would end up deeming it.
The point is this, Mr. Chairman: we have to front-load this system so
we can get these agreements reached at the beginning of the year so we
can move forward on the same page. Most importantly, we need to make
this budget have the force of law so that it can be enforced. That is
the problem. Our budget resolutions ends up becoming mere guidelines
and do not actually have the force of law. Therefore, they are not
enforceable. We always break our budgets.
If we make this have the force of law, it becomes enforceable.
Therefore, we can actually stick to the budgets we have.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN pro tempore. Who seeks time in opposition?
Mr. SPRATT. Mr. Chairman, I claim the time in opposition.
The CHAIRMAN pro tempore. The gentleman from South Carolina (Mr.
Spratt) is recognized for 5 minutes.
Mr. SPRATT. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, we have heard some eloquent statements from members of
the Committee on Appropriations, largely Republican members of the
Committee on Appropriations, to the effect that the President already
has, as they put it, three bites at the apple. This gives the President
a fourth bite, and, believe me, a big bite.
This clearly is a shift of leverage from the House and the Senate,
the Congress, to the Presidency. The President would emerge from this
kind of deal with much, much greater authority in dictating what the
budget is going to be. You have heard it more eloquently from members
of the Committee on Appropriations, what the results would be in
determining priorities. This definitely would be a big shift.
Now, would it make the budget process any stronger, any more
effective? My concern is, contrary to the belief that it might
streamline the process by elevating the status of the budget
resolution, I think it would probably prolong the process, protract the
process. As a result, we would find ourselves with less time to do
appropriation bills because it would take a much longer time to get the
budget resolution done, because not only would we have to agree among
ourselves, from party to party, we would have to agree with the White
House.
There is some advantage to that, trying to bring us together; but I
think there is a lot of disadvantage, and there is a lot of room for
chicanery. There is a lot of room for manipulating the process if we do
it, and it could result in a protracted budget process, such that every
year we will be, as we are now, in the heart of the summer, trying to
pass appropriation bills before the fiscal year ends.
This has been around the track a number of times. It has a certain
appeal to it, until you begin considering all the ramifications and the
transfer of power that it would effect, a very subtle transfer, but a
real one.
I would suggest this is an idea that we should not adopt.
Mr. Chairman, I reserve the balance of my time.
Mr. RYAN of Wisconsin. Mr. Chairman, before yielding to my cosponsor
of this amendment, I yield myself 10 seconds.
Number one, the President already has the power to sign these bills
into law. He signs appropriation bills, he signs tax bills, he signs
entitlement bills. So this does not give him new power he does not
already have.
Number two, the gentleman from South Carolina, who is a leader in
this area, has been a leader in this area for a long time, sponsored a
bill in 1991 that did just this. So I think this is a good idea.
Mr. SPRATT. Mr. Chairman, I yield myself 15 seconds to respond to
that.
Mr. Chairman, I do not know what bill the gentleman is referring to,
but the gentleman from Iowa (Mr. Nussle) proposed this idea some time
ago. I never did support this idea. I never have.
Mr. RYAN of Wisconsin. Mr. Chairman, will the gentleman yield?
Mr. SPRATT. I yield to the gentleman from Wisconsin.
Mr. RYAN of Wisconsin. Mr. Chairman, it is my understanding the
gentleman supported this in the past. Either way, good people can
disagree on these things.
Mr. Chairman, I yield 2 minutes to the gentleman from Minnesota (Mr.
Gutknecht).
Mr. GUTKNECHT. Mr. Chairman, one of my favorite Rodney Dangerfield
routines is when he comes home one night and his wife is packing, and
he asked her, ``Are you leaving?'' She said, ``Yes.'' He looked at her
and said, ``Is there another man?'' She said, ``There must be.''
When you look at the system we have today, and I have listened to the
debate so far, people are in a sense saying the system is broken, but
we cannot fix it.
The system is broken, and if you look at the way the system works, it
guarantees that we will overspend.
Now, earlier today I went through the numbers, and I have done this
several times, what we passed in our budget resolution and what we
ended up spending. And a lot of people are walking around saying, gee,
I do not know how that happened. Well, here is how it happens. Here is
the dirty little secret.
{time} 2000
What happens is, we over here in the House might low-ball certain
things and high-ball other things, and the folks over in the Senate
will low-ball certain things and high-ball other things, and what we
wind up doing with a lot of these things, and we all know this happens,
is we go to conference at one level and the Senate is at another level
and we end up compromising at another level beyond the other 2, and the
reason is we are all working off different blueprints. We have what the
President proposes and what he ultimately will agree to, and then what
the House proposes and what the Senate proposes.
What we are saying with this amendment is, and I think it is pretty
simple: let us get all of the players on the same page early in the
process.
Some people say, well, that will take away the constitutional powers
of the House. If you stop and think about it, I say to my colleagues,
that is ludicrous. The House will still maintain the power of the
purse, and the President will still have that one arrow in his quiver
called the veto. But we are going to try to bring everybody to the
table early so that we are all using the same blueprint, so that at the
end of the day, we build a house we can all be proud of.
Is there a better way? There must be.
Now, maybe this is not perfect, but I think this would be a giant
step in the
[[Page H5000]]
right direction. Let me remind my colleagues, I think most of our
constituents think that that is the way the system is today. When we
explain to them that the budget resolution does not have the power of
law, they look at us with a blank look.
We ought to pass this amendment 300 to nothing.
Let me begin with an analogy that might explain the purpose of this
amendment--If you're constructing a building and the steel workers,
architects and masons are all working with a different blueprint,
you're bound to build one ugly building. But, that's exactly what's
happening with the budget process. The House, Senate and Administration
are all using a different blueprint, and the result is a pretty ugly
budget.
The Joint Budget Resolution is very basic but does one extremely
important thing--forces both Congress and President to stay within the
budget resolution levels. The budget would be signed by the President
into law.
Another vital aspect of this amendment is that Congress and the
Administration would be engaged and working on the same priorities from
day one. This amendment would go a long way to eliminating the practice
of waiving budget points of order and large omnibus spending bills. A
law cannot be waived or broken.
When Congress allowed our spending caps and PAYGO expire, spending
rose. Numbers are stubborn things and let me provide some history . . .
Discretionary Spending in FY 2002 Budget Resolution was $661.3
billion. Congress spent $734.6 billion. Discretionary Spending in FY
2003 Budget Resolution was $759 billion. Congress spent $849.1 billion.
Discretionary Spending FY 2004 Budget Resolution was $784.5 billion.
Congress spent $873.1 billion. The Joint Budget Resolution is not a
radical idea--it's common sense. That is why grassroots organizations
like Americans for Tax Reform, American Conservative Union, Citizens
Against Government Waste, Citizens for a Sound Economy and the National
Taxpayers Union have endorsed this amendment.
We need a budget that will be enforced and that is why I have offered
this amendment to restore fiscal sanity back to the federal budget
process. We need to protect the taxpayers from Congress' bad spending
habits. If you believe that we need to control spending and put common
sense back into the budget process--I urge your support on the Ryan/
Gutknecht Amendment.
From 1995--2000, overall spending has increased by an average of 3.2%
(House Budget Committee).
Since 2001, overall spending has increased by an average of 6.4%
(House Budget Committee).
Since 2001, discretionary spending has increased on average of 9.7%
(House Budget Committee).
Sine 9-11 the weak economy has been the #1 factor contributing to our
deficits. As our economy recovered, spending increased substantially,
becoming the #2 factor contributing to our deficits (Joint Economic
Committee).
Post 9-11, spending grew by 11% (2001-2003), which represents the
largest two-year increase in nearly a decade. This does not include
defense and 9-11 costs (Heritage Foundation).
Mandatory spending now represents 55% of the entire federal budget--
this does not include the recently enacted medicare bill (House Budget
Committee).
The federal budget now totals more than $20,000 per household--the
first time since WWII (Heritage Foundation).
``The progress in the 1990s in reducing budget deficits might have
been elusive were it not for the budget rules that worked far better
than many skeptics, myself included, had expected.'' (Alan Greenspan,
House Budget Committee, September 2002).
``Now is not the time to abandon the discipline and structure that
worked so well for so long. The framework enacted in the Budget
Enforcement Act of 1990 . . . must be preserved.'' (Alan Greenspan,
House Budget Committee, September 2002).
``I would like to see the restoration of PAYGO and discretionary caps
which essentially will restrain the expansion of the deficit and
indeed, ultimately contain it. It did that back in the early '90s and I
thought it was quite and surprisingly successful in restraining what
had been a budget which had gotten out of kilter.'' (Alan Greenspan,
House Budget Committee, July 2003).
``I do believe that tax cuts, if properly constructed, can be a
significant factor in long-term economic growth, but it obviously
requires that if you cut taxes and maintain a viable long-term budget
deficit, or surplus policy, you have to address spending as well.''
(Alan Greenspan, House Budget Committee, July 2003).
``We don't have a trillion-dollar debt because we haven't taxed
enough--we have a trillion dollar debt because we spend too much.''
(President Ronald Reagan, 1982).
Mr. SPRATT. Mr. Chairman, I yield 1 minute to the gentleman from
North Dakota (Mr. Pomeroy).
Mr. POMEROY. Mr. Chairman, I thank the gentleman for yielding me this
time.
I think it is useful to put this debate into perspective:
enthusiastic ideas about how the budget process can work; talking about
building a new house for the construction of the Nation's budget. It
reminds me of a contractor that you might hire that has left the house
in utter shambles, the project nowhere done, no hope of completion, yet
he wants to talk to you about the next house, the next project.
We do not have a budget. We have a Republican President, we have a
Republican Senate, we have a Republican House, and they cannot pass a
budget.
So what is the amendment before us? It says we have to have a
concurrent law for a budget. That will make it all right.
Mr. Chairman, if we just took all of this time and put it to work in
trying to get a budget; after all, it should not be so hard: Republican
controlled, Republican controlled, Republican controlled. If they just
did the task in front of them, that would be a really good place to
start. And in the absence of getting the budget done, all of the rest
of this does not mean anything.
Mr. RYAN of Wisconsin. Mr. Chairman, I yield myself such time as I
may consume.
The current system we have is dysfunctional. It has games built into
the system so that the House can do one thing; the other body, the
Senate, but I am not supposed to say that word, can do another; and the
President can do a third thing. What happens in the current budget
system is we go into a stalemate and to get out of that stalemate at
the end of the year, we end up spending more money than the budget ever
planned on spending.
What we simply want to do is to bring this budget up to the level of
the law so that we are all on the same page at the beginning of the
budget process so that we can enforce that budget because it is in law.
The budgets we pass here are not really binding, they are guidelines.
They are not legally protected. We cannot protect and enforce our
budget if it does not rise to the level of the law. We cannot be on the
same page at the beginning of the year, if we are not on the same page
at the beginning of the year. That is why we are trying to pass this
very common sense idea, so that we are all on the same page and so that
this can be law and, therefore, our budgets can be enforced.
I urge adoption of this amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. SPRATT. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I honestly fail to see what we will accomplish, except
protracting the process; what we will accomplish positively by making
this concurrent resolution a joint resolution that has the effect of
law. I really do not know what will be different from what we have
right now, except we would have to come to some agreement with the
White House much, much sooner in the year than we otherwise have to.
What is going to be different? The statutory? What would be different
about it?
Mr. RYAN of Wisconsin. Mr. Chairman, will the gentleman yield?
Mr. SPRATT. I yield to the gentleman from Wisconsin.
Mr. RYAN of Wisconsin. Mr. Chairman, this is part of our larger
effort, which is in our substitute. But what this will do is allow to
have a sequester to kick in if Congress exceeds its spending items.
Just like the sequesters we have talked about before in the old
Committee on the Budget days, if Congress overspends, because we have
this in law, a sequester kicks in and brings spending back into
conformity with the budget.
Mr. SPRATT. But that is done already under existing law.
Mr. RYAN of Wisconsin. But we waive our budget caps all of the time
under the current system.
Mr. SPRATT. Sure. We would waive them again, put it in a bill, send
it to the White House, the President would sign it.
Mr. RYAN of Wisconsin. This way the President could veto breaking the
[[Page H5001]]
budget caps early in the process and we could keep to these numbers.
Mr. SPRATT. Well, I am convinced it will prolong the process,
complicate the process, and lead to less results rather than better
results. It is something we can long argue about.
Mr. NUSSLE. Mr. Chairman, will the gentleman yield?
Mr. SPRATT. I yield to the gentleman from Iowa.
Mr. NUSSLE. Mr. Chairman, I am not going to change the gentleman's
mind, I understand that. But we have heard a lot today about bringing
everybody together. There is nothing like bringing everybody together
by the need to pass a law as opposed to just passing a resolution. By
doing it by resolution, the House can have a version, the other body
can have a version, the President has a version. You can go through the
entire year with three versions.
I understand we are not going to change the gentleman's mind or
probably a lot of people's minds, but what the gentleman is suggesting
is by doing it this way, everyone has to come together at least once.
That is the reason.
The CHAIRMAN pro tempore (Mr. Bass). The time of the gentleman from
South Carolina (Mr. Spratt) has expired. All time has expired.
The question is on the amendment offered by the gentleman from
Wisconsin (Mr. Ryan).
The question was taken; and the Chairman pro tempore announced that
the ayes appeared to have it.
Mr. SPRATT. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Wisconsin
(Mr. Ryan) will be postponed.
It is now in order to consider Amendment No. 8 printed in House
report 108-566.
Amendment No. 8 Offered by Mr. Ryan of Wisconsin
Mr. RYAN of Wisconsin. Mr. Chairman, I offer an amendment.
The Chairman pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 8 offered by Mr. Ryan of Wisconsin:
At the end, add the following new sections:
SEC. . ESTABLISHMENT OF BUDGET PROTECTION MANDATORY
ACCOUNT.
(a) Budget Protection Mandatory Account.--Title III of the
Congressional Budget Act of 1974 is amended by adding at the
end the following new sections:
``budget protection mandatory account
``Sec. 316. (a) Establishment of Account.--The chairman of
the Committee on the Budget of the House of Representatives
and of the Senate shall each maintain an account to be known
as the `Budget Protection Mandatory Account'. The Account
shall be divided into entries corresponding to the House or
Senate committees, as applicable, that received allocations
under section 302(a) in the most recently adopted concurrent
resolution on the budget, except that it shall not include
the Committee on Appropriations of that House and each entry
shall consist of the `First Year Budget Protection Balance'
and the `Five Year Budget Protection Balance'.
``(b) Components.--Each entry shall consist only of amounts
credited to it under subsection (c). No entry of a negative
amount shall be made.
``(c) Crediting of Amounts to Account.--(1) Whenever a
Member or Senator, as the case may be, offers an amendment to
a bill that reduces the amount of mandatory budget authority
provided either under current law or proposed to be provided
by the bill under consideration, that Member or Senator may
state the portion of such reduction achieved in the first
year covered by the most recently adopted concurrent
resolution on the budget and in addition the portion of such
reduction achieved in the first five years covered by the
most recently adopted concurrent resolution on the budget
that shall be--
``(A) credited to the First Year Budget Protection Balance
and the Five Year Budget Protection Balance in the House or
Senate, as applicable;
``(B) used to offset an increase in other new budget
authority;
``(C) allowed to remain within the applicable section
302(a) allocation; or
``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new
budget authority resulting from the amendment shall be
credited to the First Year Budget Protection Balance and the
Five Year Budget Protection Balance, as applicable, if the
amendment is agreed to.
``(2) Except as provided by paragraph (3), the chairman of
the Committee on the Budget of the House or Senate, as
applicable, shall, upon the engrossment of any bill, other
than an appropriation bill, by the House or Senate, as
applicable, credit to the applicable entry balances amounts
of new budget authority and outlays equal to the net amounts
of reductions in budget authority and in outlays resulting
from amendments agreed to by that House to that bill.
``(3) When computing the net amounts of reductions in
budget authority and in outlays resulting from amendments
agreed to by the House or Senate, as applicable, to a bill,
the chairman of the Committee on the Budget of that House
shall only count those portions of such amendments agreed to
that were so designated by the Members or Senators offering
such amendments as amounts to be credited to the First Year
Budget Protection Balance and the Five Year Budget Protection
Balance, or that fall within the last sentence of paragraph
(1).
``(4) The chairman of the Committee on the Budget of the
House and of the Senate shall each maintain a running tally
of the amendments adopted reflecting increases and decreases
of budget authority in the bill as reported to its House.
This tally shall be available to Members or Senators during
consideration of any bill by that House.
``(d) Calculation of Lock-Box Savings in House and
Senate.--For the purposes of enforcing section 302(a), upon
the engrossment of any bill, other than an appropriation
bill, by the House or Senate, as applicable, the amount of
budget authority and outlays calculated pursuant to
subsection (c)(3) shall be counted against the 302(a)
allocation provided to the applicable committee or committees
of that House which reported the bill as if the amount
calculated pursuant to subsection (c)(3) was included in the
bill just engrossed.
``(e) Definition.--As used in this section, the term
`appropriation bill' means any general or special
appropriation bill, and any bill or joint resolution making
supplemental, deficiency, or continuing appropriations
through the end of fiscal year 2005 or any subsequent fiscal
year, as the case may be.''.
SEC. . ESTABLISHMENT OF BUDGET PROTECTION DISCRETIONARY
ACCOUNT.
``budget protection discretionary account
``Sec. 317. (a) Establishment of Account.--The chairman of
the Committee on the Budget of the House of Representatives
and of the Senate shall each maintain an account to be known
as the `Budget Protection Discretionary Account'. The Account
shall be divided into entries corresponding to the
subcommittees of the Committee on Appropriations of that
House and each entry shall consist of the `Budget Protection
Balance'.
``(b) Components.--Each entry shall consist only of amounts
credited to it under subsection (c). No entry of a negative
amount shall be made.
``(c) Crediting of Amounts to Account.--(1) Whenever a
Member or Senator, as the case may be, offers an amendment to
an appropriation bill to reduce new budget authority in any
account, that Member or Senator may state the portion of such
reduction that shall be--
``(A) credited to the Budget Protection Balance;
``(B) used to offset an increase in new budget authority in
any other account;
``(C) allowed to remain within the applicable section
302(b) suballocation or
``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new
budget authority resulting from the amendment shall be
credited to the Budget Protection Balance, as applicable, if
the amendment is agreed to.
``(2) Except as provided by paragraph (3), the chairman of
the Committee on the Budget of the House or Senate, as
applicable, shall, upon the engrossment of any appropriation
bill by the House or Senate, as applicable, credit to the
applicable entry balances amounts of new budget authority and
outlays equal to the net amounts of reductions in budget
authority and in outlays resulting from amendments agreed to
by that House to that bill.
``(3) When computing the net amounts of reductions in new
budget authority and in outlays resulting from amendments
agreed to by the House or Senate, as applicable, to an
appropriation bill, the chairman of the Committee on the
Budget of that House shall only count those portions of such
amendments agreed to that were so designated by the Members
offering such amendments as amounts to be credited to the
Budget Protection Balance, or that fall within the last
sentence of paragraph (1).
``(4) The chairman of the Committee on the Budget of the
House and of the Senate shall each maintain a running tally
of the amendments adopted reflecting increases and decreases
of budget authority in the bill as reported to its House.
This tally shall be available to Members or Senators during
consideration of any bill by that House.
``(d) Calculation of Lock-Box Savings in House and
Senate.--(1) For the purposes of enforcing section 302(a),
upon the engrossment of any appropriation bill by the House
or Senate, as applicable, the amount of budget authority and
outlays calculated pursuant to subsection (c)(3) shall be
counted against the 302(a) allocation provided to the
Committee on Appropriations as if the amount calculated
pursuant to subsection (c)(3) was included in the bill just
engrossed.
``(2) For purposes of enforcing section 302(b), upon the
engrossment of any appropriation bill by the House or Senate,
as applicable, the 302(b) allocation provided to the
[[Page H5002]]
subcommittee for the bill just engrossed shall be deemed to
have been reduced by the amount of budget authority and
outlays calculated, pursuant to subsection (c)(3).
``(e) Definition.--As used in this section, the term
`appropriation bill' means any general or special
appropriation bill, and any bill or joint resolution making
supplemental, deficiency, or continuing appropriations
through the end of fiscal year 2005 or any subsequent fiscal
year, as the case may be.''.
(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 315 the following new items:
``Sec. 316. Budget protection mandatory account.
``Sec. 317. Budget protection discretionary account.''.
SEC. . REVENUE ADJUSTMENT.
If an amendment is designated to be used to offset a
decrease in receipts for a fiscal year pursuant to section
316(c)(1)(D) or section 317(c)(1)(D) of the Congressional
Budget Act of 1974, then the applicable level of revenues for
such fiscal year for purposes of section 311(a) of such Act
shall be reduced by the amount of such amendment.
The CHAIRMAN pro tempore. Pursuant to House Resolution 692, the
gentleman from Wisconsin (Mr. Ryan) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentleman from Wisconsin (Mr. Ryan).
Mr. RYAN of Wisconsin. Mr. Chairman, I yield myself such time as I
may consume.
I bring this amendment to the desk with my cosponsor, the gentleman
from Texas (Mr. Neugebauer). Let me briefly explain it.
This is what we call budget protection accounts. Here is how the
current appropriations process works. If we have a piece of spending in
the budget that we think is wasteful, let me take two examples here;
the $200,000 for the Rock and Roll Hall of Fame in Cleveland, Ohio, or
the $500,000 for the Anaheim Resort Transit to fund buses at
Disneyland, or the $50 million to fund the Coralville Rain Forest
Museum in Coralville, Iowa.
Let us take, for example, if we want to get rid of that spending, we
can bring an amendment to the floor, pass it, make sure that spending
does not go to those projects, but by the rules of this institution,
that money has to be spent somewhere else in the Federal government.
That is ridiculous, Mr. Chairman.
All we are proposing is this: if Members can come to the floor with
amendments to eliminate or reduce wasteful spending, they ought to be
able to save that money. That is all we are proposing.
So what we do here is when a cutting amendment comes to the floor to
reduce spending, the entire 302(a) allocation, the entire discretionary
allocation goes down by the amount of that amendment. So that at the
end of the year, that money either goes to reducing the deficit or that
money goes to reduce taxes. We have a mechanism that makes sure that
this reconciles with the other body appropriately.
Mr. Chairman, I reserve the balance of my time.
Mr. SPRATT. Mr. Chairman, I claim the time in opposition, and I yield
myself such time as I may consume.
Mr. Chairman, like many of the amendments that were offered to this
base bill, I have only had the chance to peruse quickly this one. This
is an idea that has been around the track before. In the late 1980s,
early 1990s, we were searching for ways to get our hands around the
problem. This is one of the things that was proposed by several
different people in several different variations.
Anyone who tried to implement this and have legislative counsel draw
it in a form that would be truly enforceable ran into multiple
complications. It is maddeningly complicated, as the gentleman can tell
from reading the bill. The bill takes it a step further than any
version of this idea I have ever read before, and it taxed all my
concentration here on the House Floor to make it from the first page to
the last page, and I am in a maze. I do not really know how it works.
Mr. RYAN of Wisconsin. Mr. Chairman, will the gentleman yield?
Mr. SPRATT. I yield to the gentleman from Wisconsin.
Mr. RYAN of Wisconsin. Mr. Chairman, I can explain it. Basically, it
works like this. A Member brings an amendment to the House Floor to cut
spending. The 302(a) allocation goes down by that amount. At the end of
the day, the conference report for the appropriation bills goes down by
the lower of the two different amounts between the House amendments and
the Senate amendments. At the end of the year, because the 302(a) will
have gone down by that amount, the Committee on Ways and Means can use
the savings for tax relief. If it does not do that by the end of the
fiscal year, the savings, the lower of the amendments between the House
or the Senate, is going toward deficit reduction.
That is essentially how it works. I know it is complicated.
Mr. SPRATT. Mr. Chairman, reclaiming my time, keep in mind that other
body called the Senate moves in a separate orbit from this body, and
somebody over there is going to have a different idea, and there is
going to be an entry under a different program. When we go to
conference, the conferees are going to have a different idea, and the
bookkeepers around here are going to be switching credits from account
to account, taking back credits as the money that was saved is now
spent. The project that was going to be killed or cut is now restored,
and it becomes a nightmare.
That is why this idea has had all of the longevity of a lead balloon.
It has never gotten off the ground.
Mr. RYAN of Wisconsin. Mr. Chairman, will the gentleman briefly yield
again?
Mr. SPRATT. I yield to the gentleman from Wisconsin.
Mr. RYAN of Wisconsin. Mr. Chairman, I appreciate the gentleman's
indulgence. First of all, it is true that you could eliminate a piece
of pork here on the House Floor and it could get placed back in on the
Senate floor. But by these rules, at least that amount of money would
have to be saved, because the 302(a) allocation will go down by that
amount. It would be up to the Committee on Appropriations to decide
where that money comes from. But the point is, that money would have to
be saved.
Mr. SPRATT. Mr. Chairman, if one could keep the trail of it, and that
is the problem.
Mr. RYAN of Wisconsin. Mr. Chairman, that is up to the Committee on
the Budget.
Mr. SPRATT. Mr. Chairman, reclaiming my time, the core idea is
basically an appealing idea and lots of Members around here have had
the experience where they have found something that they thought could
be a legitimate saving, they have offered the amendment and prevailed,
only to see the money is spent somewhere else. I disagree with the
gentleman when he said a little while ago, and I think it was in a
moment of zealousness, that if the savings were taken out of, say, the
Cleveland Rock and Roll Museum, it would have to be spent somewhere
else. It does not have to be spent somewhere else; it can be saved, and
this mechanism was a way on to sort of lock box money, so that it could
not be used again.
But there are so many moving pieces. We have an authorization bill,
an appropriation bill; a House and a Senate conference committee, and
any time anybody makes any kind of change or different entry, there has
to be an adjustment. This is a $2.2 trillion budget, and I think the
bookkeepers, their minds would be boggled trying to keep account of
this, as mine was when I was trying to read the gentleman's bill.
So I do not discredit the idea, it is just the mechanism for
enforcing it and truly making it work is so complicated, I think it
collapses upon itself.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN pro tempore. The gentleman from South Carolina (Mr.
Spratt) has 1 minute remaining; the gentleman from Wisconsin (Mr. Ryan)
has 3\1/2\ minutes remaining.
Mr. RYAN of Wisconsin. Mr. Chairman, I yield 2 minutes to the
cosponsor of this amendment, the gentleman from Texas (Mr. Neugebauer).
Mr. NEUGEBAUER. Mr. Chairman, I rise today in support of the Budget
Accounts amendment. I appreciate having the chance to work with the
gentleman from Wisconsin (Mr. Ryan) on this amendment which enhances
the budget legislation we are considering today.
In this and other debates today, we have heard a lot of talk about a
provision called PAYGO. Well, I think this
[[Page H5003]]
amendment creates something that I call save-go.
Budget Protection Accounts allow us to actually save money for the
taxpayers as we go through the appropriations and other spending bills;
money that is set aside for the taxpayers, either in the form of tax
relief or debt reduction.
When Members offer amendments on appropriations bills today that
reduce spending, any money reduced automatically becomes available to
be spent on another program or a project in that bill or in another
bill. If the Budget Projection Accounts are created, Members would be
able to direct savings resulting from their amendments to the debt
reduction or tax relief. Members are not required to do so, but they
are simply given that option. Imagine being able to go home back to
your district and actually tell your constituents that you saved them
some money.
This is an important option to have if we are serious about doing
something about reducing spending. Members have little incentive to
offer amendments that reduce spending when they know that the money the
amendment claims to save is automatically given to other projects. If
Members have the option to direct savings to relief of deficit
reduction or incentive to go after other waste and fraud, they will
actually do so.
Budget Protection Accounts allow Members to be for savings and
fiscally responsible, rather than always against projects or programs.
Let us give the House the opportunity to save the taxpayers some
money when we are going through spending bills and the opportunity to
use those savings for the benefit of the taxpayers. As many have said
today, and I continue to say, Mr. Chairman, we do not have an income
problem, we have a spending problem, and I believe that the Budget
Protection Accounts help us with that problem.
{time} 2015
Mr. SPRATT. Mr. Chairman, I reserve the balance of my time.
Mr. RYAN of Wisconsin. Mr. Chairman, I yield the remaining time to
the gentleman from Pennsylvania (Mr. Toomey).
Mr. TOOMEY. Mr. Chairman, this is really a simple idea. And I think I
am understanding the gentleman from South Carolina to say that he
agrees with the concept, the concept being that if you identify a
specific item that appears to one of the Members here as wasteful and
he prevails in his vote on the floor, that that money should not be
spent somewhere else. It is not that complicated. And, God knows, we
got a lot of items that fit this description. The last omnibus spending
bill we allocated $4 million to study fruit flies in France, $2 million
to teach kids to play golf in Florida, and, yes, $50 million to build
an indoor tropical rain forest in Iowa.
The gentleman from South Carolina, if I understand correctly, seems
to be objecting to the amendment on the grounds that it is difficult to
draft this in a way that really works. And I am the first to say it is
tricky. But we got a lot of very bright people in this town. If this is
not the absolute perfect way to draft it, although it might be, I
appreciate my colleague conceding that the gentleman from Wisconsin
(Mr. Ryan) has done an excellent job, maybe the best job yet on this, I
would say let us support the amendment and let us work on refining it
and improving it and let us dedicate both sides' staffs to figuring out
how to get this done.
But the concept of saying if a certain amount of spending is going to
be withheld on this floor, that that money is not available to be spent
anywhere else, that is not that hard. I am convinced we can do it.
So I would urge my colleagues to reconsider and to support this
amendment and work together to find the language that achieves the
objective that apparently we all agree with.
Mr. SPRATT. Mr. Chairman, to close I yield the remaining time to the
gentleman from North Dakota (Mr. Pomeroy).
Mr. POMEROY. Mr. Chairman, this proposal would allow a vote on the
Senate to reduce the House 302(b) allocation. A vote on the Senate
reduces our allocation. This is an absurd idea on its face. But it
perverts the name ``lockbox.'' Previously we all agreed on lockbox.
Lockbox meant we did not spend Social Security, we did not spend
Medicare revenues on anything but Social Security and Medicare.
The deficit policies of the majority now spend every nickel of the
surplus of Social Security and Medicare, every nickel; $500 billion
this year alone. They want to get up on the floor of the House and talk
about creating this Mickey Mouse lockbox of theirs to capture fruit fly
spending. It is ridiculous.
Let us talk about the real issue: blowing all the revenues of Social
Security, all the revenues of Medicare, all of the surplus intended to
strengthen these programs, gone because of runaway deficit spending,
the absolute core result of Republican fiscal policies.
Rather than pass a budget to deal responsibly with beginning to get
us out of this hole, they put us through this charade tonight. Shame on
my colleagues. Defeat this amendment.
The CHAIRMAN pro tempore (Mr. Bass). The question is on the amendment
offered by the gentleman from Wisconsin (Mr. Ryan).
The question was taken; and the Chairman pro tempore announced that
the ayes appeared to have it.
Mr. SPRATT. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Wisconsin
(Mr. Ryan) will be postponed.
It is now in order to consider amendment No. 9 printed in House
Report 108-566.
Amendment No. 9 Offered by Mr. Ryan of Wisconsin
Mr. RYAN of Wisconsin. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 9 offered by Mr. Ryan of Wisconsin:
At the end, add the following new section:
SEC. . ENHANCED CONSIDERATION OF CERTAIN PROPOSED
RESCISSIONS.
(a) In General.--Part B of title X of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 681 et
seq.) is amended by redesignating sections 1013 through 1017
as sections 1014 through 1018, respectively, and by inserting
after section 1012 the following new section:
``ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS
``Sec. 1013. (a) Proposed Rescission of Budget Authority
Identified as Wasteful Spending.--The President may propose,
at the time and in the manner provided in subsection (b), the
rescission of any budget authority provided in an
appropriation Act that he identifies as wasteful spending. If
the President proposes a rescission of budget authority, he
may also propose to reduce the appropriate discretionary
spending limits for new budget authority and outlays flowing
therefrom set forth in section 251(c) of the Balanced Budget
and Emergency Deficit Control Act of 1985 by an amount that
does not exceed the amount of the proposed rescission. Funds
made available for obligation under this procedure may not be
proposed for rescission again under this section.
``(b) Transmittal of Special Message.--
``(1) The President may transmit to Congress a special
message proposing to rescind amounts of budget authority and
include with that special message a draft bill that, if
enacted, would only rescind that budget authority unless the
President also proposes a reduction in the appropriate
discretionary spending limits set forth in section 251(c) of
the Balanced Budget and Emergency Deficit Control Act of
1985. That bill shall clearly identify the amount of budget
authority that is proposed to be rescinded for each program,
project, or activity to which that budget authority relates.
``(2) In the case of an appropriation Act that includes
accounts within the jurisdiction of more than one
subcommittee of the Committee on Appropriations, the
President in proposing to rescind budget authority under this
section shall send a separate special message and
accompanying draft bill for accounts within the jurisdiction
of each subcommittee.
``(3) Each special message shall specify, with respect to
the budget authority proposed to be rescinded, the following:
``(A) The amount of budget authority which he proposes to
be rescinded.
``(B) Any account, department, or establishment of the
Government to which such budget authority is available for
obligation, and the specific project or governmental
functions involved.
``(C) The reasons why the budget authority should be
rescinded, including why he considers it to be wasteful
spending.
``(D) To the maximum extent practicable, the estimated
fiscal, economic, and budgetary effect (including the effect
on outlays and receipts in each fiscal year) of the proposed
rescission.
[[Page H5004]]
``(E) All facts, circumstances, and considerations relating
to or bearing upon the proposed rescission and the decision
to effect the proposed rescission, and to the maximum extent
practicable, the estimated effect of the proposed rescission
upon the objects, purposes, and programs for which the budget
authority is provided.
``(F) A reduction in the appropriate discretionary spending
limits set forth in section 251(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985, if proposed by the
President.
``(c) Procedures for Expedited Consideration.--
``(1)(A) Before the close of the second legislative day of
the House of Representatives after the date of receipt of a
special message transmitted to Congress under subsection (b),
the majority leader or minority leader of the House of
Representatives shall introduce (by request) the draft bill
accompanying that special message. If the bill is not
introduced as provided in the preceding sentence, then, on
the third legislative day of the House of Representatives
after the date of receipt of that special message, any Member
of that House may introduce the bill.
``(B) The bill shall be referred to the Committee on
Appropriations. The committee shall report the bill without
substantive revision and with or without recommendation. The
bill shall be reported not later than the seventh legislative
day of that House after the date of receipt of that special
message. If that committee fails to report the bill within
that period, that committee shall be automatically discharged
from consideration of the bill, and the bill shall be placed
on the appropriate calendar.
``(C) A vote on final passage of the bill shall be taken in
the House of Representatives on or before the close of the
10th legislative day of that House after the date of the
introduction of the bill in that House. If the bill is
passed, the Clerk of the House of Representatives shall cause
the bill to be engrossed, certified, and transmitted to the
Senate within one calendar day of the day on which the bill
is passed.
``(2)(A) A motion in the House of Representatives to
proceed to the consideration of a bill under this section
shall be highly privileged and not debatable. An amendment to
the motion shall not be in order, nor shall it be in order to
move to reconsider the vote by which the motion is agreed to
or disagreed to.
``(B) Debate in the House of Representatives on a bill
under this section shall not exceed 4 hours, which shall be
divided equally between those favoring and those opposing the
bill. A motion to further limit debate shall not be
debatable. It shall not be in order to move to recommit a
bill under this section or to move to reconsider the vote by
which the bill is agreed to or disagreed to.
``(C) Appeals from decisions of the Chair relating to the
application of the Rules of the House of Representatives to
the procedure relating to a bill under this section shall be
decided without debate.
``(D) Except to the extent specifically provided in the
preceding provisions of this subsection, consideration of a
bill under this section shall be governed by the Rules of the
House of Representatives. It shall not be in order in the
House of Representatives to consider any rescission bill
introduced pursuant to the provisions of this section under a
suspension of the rules or under a special rule.
``(3) A bill transmitted to the Senate pursuant to
paragraph (1)(D) shall be referred to its Committee on
Appropriations. That committee shall report the bill without
substantive revision and with or without recommendation. The
bill shall be reported not later than the seventh legislative
day of the Senate after it receives the bill. A committee
failing to report the bill within such period shall be
automatically discharged from consideration of the bill, and
the bill shall be placed upon the appropriate calendar.
``(4)(A) A motion in the Senate to proceed to the
consideration of a bill under this section shall be
privileged and not debatable. An amendment to the motion
shall not be in order, nor shall it be in order to move to
reconsider the vote by which the motion is agreed to or
disagreed to.
``(B) Debate in the Senate on a bill under this section,
and all debatable motions and appeals in connection therewith
(including debate pursuant to subparagraph (C)), shall not
exceed 10 hours. The time shall be equally divided between,
and controlled by, the majority leader and the minority
leader or their designees.
``(C) Debate in the Senate or any debatable motion or
appeal in connection with a bill under this section shall be
limited to not more than 1 hour, to be equally divided
between, and controlled by, the mover and the manager of the
bill, except that in the event the manager of the bill is in
favor of any such motion or appeal, the time in opposition
thereto, shall be controlled by the minority leader or his
designee. Such leaders, or either of them, may, from time
under their control of the passage of a bill, allot
additional time to any Senator during the consideration of
any debatable motion or appeal.
``(D) A motion in the Senate to further limit debate on a
bill under this section is not debatable. A motion to
recommit a bill under this section is not in order.
``(d) Amendment and Divisions Prohibited.--No amendment to
a bill considered under this section shall be in order in
either the House of Representatives or the Senate. It shall
not be in order to demand a division of the question in the
House of Representatives (or in a Committee of the Whole) or
in the Senate. No motion to suspend the application of this
subsection shall be in order in either House, nor shall it be
in order in either House to suspend the application of this
subsection by unanimous consent.
``(e) Requirement To Make Available for Obligation.--Any
amount of budget authority proposed to be rescinded in a
special message transmitted to Congress under subsection (b)
shall be made available for obligation on the day after the
date on which either House rejects the bill transmitted with
that special message.
``(f) Definitions.--For purposes of this section:
``(1) The term `appropriation Act' means any general or
special appropriation Act, and any Act or joint resolution
making supplemental, deficiency, or continuing
appropriations.
``(2) The term `legislative day' means, with respect to
either House of Congress, any day of session.
``(3) The term `rescind' means, with respect to an
appropriation Act, to reduce the amount of budget authority
appropriated in that Act, and reducing budget authority shall
include reducing obligation limitations set forth in that
Act.''.
(b) Exercise of Rulemaking Powers.--Section 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is
amended--
(1) in subsection (a), by striking ``and 1017'' and
inserting ``1012, and 1017''; and
(2) in subsection (d), by striking ``section 1017'' and
inserting ``sections 1012 and 1017''.
(c) Conforming Amendments.--
(1) Section 1011 of the Congressional Budget Act of 1974 (2
U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5)
and by redesignating paragraph (4) as paragraph (3).
(2) Section 1014 of such Act (2 U.S.C. 685) is amended--
(A) in subsection (b)(1), by striking ``or the
reservation''; and
(B) in subsection (e)(1), by striking ``or a reservation''
and by striking ``or each such reservation''.
(3) Section 1015(a) of such Act (2 U.S.C. 686) is amended
by striking ``is to establish a reserve or'', by striking
``the establishment of such a reserve or'', and by striking
``reserve or'' each other place it appears.
(4) Section 1017 of such Act (2 U.S.C. 687) is amended--
(A) in subsection (a), by striking ``rescission bill
introduced with respect to a special message or'';
(B) in subsection (b)(1), by striking ``rescission bill
or'', by striking ``bill or'' the second place it appears, by
striking ``rescission bill with respect to the same special
message or'', and by striking ``, and the case may be,'';
(C) in subsection (b)(2), by striking ``bill or'' each
place it appears;
(D) in subsection (c), by striking ``rescission'' each
place it appears and by striking ``bill or'' each place it
appears;
(E) in subsection (d)(1), by striking ``rescission bill
or'' and by striking ``, and all amendments thereto (in the
case of a rescission bill)'';
(F) in subsection (d)(2)--
(i) by striking the first sentence;
(ii) by amending the second sentence to read as follows:
``Debate on any debatable motion or appeal in connection with
an impoundment resolution shall be limited to 1 hour, to be
equally divided between, and controlled by, the mover and the
manager of the resolution, except that in the event that the
manager of the resolution is in favor of any such motion or
appeal, the time in opposition thereto shall be controlled by
the minority leader or his designee.'';
(iii) by striking the third sentence; and
(iv) in the fourth sentence, by striking ``rescission bill
or'' and by striking ``amendment, debatable motion,'' and by
inserting `debatable motion';
(G) in paragraph (d)(3), by striking the second and third
sentences; and
(H) by striking paragraphs (4), (5), (6), and (7) of
paragraph (d).
(d) Clerical Amendments.--The table of sections for subpart
B of title X of the Congressional Budget and Impoundment
Control Act of 1974 is amended by redesignating the item
relating to sections 1014 through 1018 as items 1015 through
1019, respectively, and by inserting after the item relating
to section 1012 the following new item:
``Sec. 1013. Enhanced consideration of certain proposed rescissions.''.
The CHAIRMAN pro tempore. Pursuant to House Resolution 692, the
gentleman from Wisconsin (Mr. Ryan) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentleman from Wisconsin (Mr. Ryan).
Mr. RYAN of Wisconsin. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, I will explain this. We are going to go after wasteful
spending in another direction with this amendment. This is a bipartisan
amendment with the gentleman from Texas (Mr. Stenholm), also with the
gentleman from Delaware (Mr. Castle), who is not here with us on the
floor this moment, supporting this amendment. This is what we call
enhanced rescissions.
[[Page H5005]]
The way this amendment works is that the President, after signing a
bill into law, an appropriations bill into law, has the ability to pull
out a wasteful spending measure or a number of wasteful spending
measures that he or she deems wasteful.
Now, this makes sure that we retain the power of the purse so that
that bill comes back to the House and the Senate among expedited
procedures where we vote up or down on that rescission package.
Now, if my colleagues will recall, during the line item veto debate
of a number of years ago, the Supreme Court ended up striking down the
line item veto. The reason the Supreme Court struck down the line item
veto is a reason I agree with, which was it is unconstitutional for the
legislative branch to delegate its lawmaking power to the executive
branch the power of the purse.
So what we are doing in place of that is this. As a consequence to
those who oppose the line item veto at the same time, they were the
folks who were actually proposing this legislation, what happens is the
President pulls out spending from a spending bill, sends it back to
Congress on an expedited procedural basis, Congress votes up or down on
those spending cuts. And we have the final say as to whether or not
that spending occurs.
Now, the great point of all of this is we end up having to vote on
these huge appropriation bills. Last year's omnibus appropriation bill
had seven different appropriation bills bundled into one. So we had one
vote on the conference report up or down. So we had to vote on veterans
health care, on Labor Department spending, on Health and Human
Services; but we also had to vote for the $50 million rain forest
museum in Coralville, Iowa.
This gives the President the ability to say we probably should not be
spending money on that rain forest museum in Coralville, Iowa, and a
few other things. I am pulling those out of this bill and sending it
back to Congress for a revote, and then Congress has the final decision
as to whether or not that spending takes place.
We retain the power of the purse, but we have a tool to go after
wasteful spending.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN pro tempore. Who claims time in opposition to the
amendment?
Mr. SPRATT. Mr. Chairman, I claim the time in opposition, but I may
not oppose the bill. I simply claim the time.
The CHAIRMAN pro tempore. Without objection, the gentleman from South
Carolina will control the time.
There was no objection.
Mr. SPRATT. Mr. Chairman, I yield 2 minutes to the gentleman from
Texas (Mr. Stenholm).
Mr. STENHOLM. Mr. Chairman, I am very happy to join with the
gentleman from Wisconsin (Mr. Ryan) and the gentleman from Delaware
(Mr. Castle) to offer this amendment tonight.
Expedited rescission has been around a long time. Dan Quayle first
introduced it in 1975. Senator Carper, Dick Armey did yeoman's work in
passing this legislation. I have been working in support of expedited
rescission legislation since 1992. And I worked with many Members on my
side of the aisle, including the gentleman from South Carolina (Mr.
Spratt), the gentleman from Michigan (Mr. Conyers), and others on
similar proposals.
There is a fundamental question that we need to ask. Line item veto
was unconstitutional, and I was never comfortable giving any President
one-third-plus-one minority override over a decision of Congress, and
the Supreme Court upheld that as being unconstitutional, but
imperfectly willing to give any President line item veto over any pork
spending, if that is what you want to call it, by me or the gentleman
from Wisconsin (Mr. Ryan) or anyone else, provided I have an
opportunity to have a majority of the House agree with me or to agree
with the President. That is what expedited rescission is all about.
I respect the concern of Members on my side of the aisle that that
amendment will give too much power to the President, but it matters not
to me who is President. I am perfectly willing to give any President
that opportunity because it will have a very cleansing effect because
anyone that sticks in as many add-ons as we have been adding on to the
appropriation process, and I found it rather amusing listening to the
appropriators a moment ago, when you look at what has happened with all
of the add-ons, all of the add-ons that have been added in the
appropriations process, I would love to see a President come in and
line item veto that, even if it is mine or anyone else's, because it
would have a cleansing effect.
If one cannot stand up on the floor and defend that which he has
asked appropriators to put in the bill, he should not do it. And that
is what this amendment is all about.
This amendment will not make a significant dent in our deficit, and I
do not claim that it will. But it will have a very real cleansing
effect on the legislative process. And it will take a step towards
reducing the public cynicism about the political process.
The time has come for to us support this additional tool for
accountability and fiscal responsibility.
Mr. RYAN of Wisconsin. Mr. Chairman, I yield 2 minutes to gentleman
from Pennsylvania (Mr. Toomey).
Mr. TOOMEY. Mr. Chairman, we have talked about a number of individual
items that we have found questionable in past omnibus bills, including,
in particular, a tropical rain forest that, by the way, was not in the
district of the Committee on the Budget chairman.
One of the points that I want to make about the beauties of this
particular amendment is that often, this is going to be shocking to
people listening to this debate, but often we have an appropriation
bill, especially when it is an omnibus appropriation bill, that can be
thousands and thousands of pages long, and who knows how many tens of
thousands of lines in this. And sometimes we have had all of several
hours to go through every single line in these thousands and thousands
of pages. The stack is usually here somewhere, set up here. If one can
get here and they are the first person there, then they can get it and
they can look through and they can discover the $4 million for fruit
flies in France or whatever else it might be. And they could raise
their objection and deal with that. But sometimes you might not get the
opportunity to go through this whole thing. In fact, as a practical
matter, none of us do. We discover later on what all has been inserted
in this bill.
What this mechanism does is it provides an opportunity after the
bill, and many of us do not want to vote against veterans funding or
important programs that are also in these bills, ends up passing; but
what this amendment does, it gives the President an opportunity to say,
okay, hold on a second here, we got a little out of hand, let us take
the following handful of items and let us rethink that on an up-or-down
vote just these items.
This is just common sense, responsible budgeting and appropriating.
So I would urge my colleagues to support this amendment.
Mr. SPRATT. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, I have actually sponsored legislation like this in the
past. I have voted for it and argued for it on the House floor. When we
had the vote on the line item veto, I came over here and tried to offer
an alternate amendment to it and argued to the House, the other side
principally, that if they would adopt this, and the Supreme Court did
what I predicted they would do and held it unconstitutional, then this
would be in place as the alternative. We would have it by now if that
had been attempted, the bill passed. And that was not put in it.
There was a strong suspicion on my colleagues' side that if we put
that in, the Senate would take out the line item veto and pass the
rescission provisions. In truth, there are certain Senators who are
probably laying in wait for this rescission provision already.
We did add some features to it that I would recommend for your
consideration. One is when it came through the Committee on Government
Reform we added a provision that would not only allow spending to be
treated this way, but also targeted tax cuts. Because these targeted
tax cuts are often tax expenditures and they were defined as tax cuts
which had a beneficiary class, a few of them. I thought it was a good
idea and a good improvement on the bill.
[[Page H5006]]
We bring these tax bills over here to the floor, they are not
amendable. We vote on them up or down. At least on the appropriations
bill, if one wants to, they have an opportunity to go after individual
items. Instead, the tax bills have all kinds of provisions.
We also had some provisions in it about how you could break out for
separate treatment all or certain parts of the package if one could get
a petition with so many Members. This is an idea that has been around
and around the track, and it is actually an idea that has been
embellished and improved as it went around the track. I am not quite
sure how many of those ideas there are in this particular version of
it, but I recommend those for my colleagues' consideration.
Mr. Chairman, I reserve the balance of my time.
Mr. RYAN of Wisconsin. Mr. Chairman, I yield myself the remainder of
the time.
Mr. Chairman, I want to answer the points the gentleman from South
Carolina made. We did look at the issue of whether there are tax
expenditures included in the enhanced rescission power, and some raised
the constitutional question. Because in article I, section 7, the U.S.
Constitution clearly states that bills for raising revenue shall
originate only in the House of Representatives.
There are some who have a constitutional concern, and this is a
debated point, that it would be unconstitutional for the President to
alter tax legislation because this would be an originating bill even
after this other bill would be passed into law.
So there is a constitutional question about the tax expenditure side.
But, more importantly, we want to focus on spending. We wanted to focus
this tool to go after wasteful spending.
Let me just conclude with showing a few things that we have done
around here. Both parties are to blame for this; 13.4 million for
community resilience project in Virginia.
{time} 2030
Mr. Chairman, $916,000 for a study about what makes a meaningful day,
$500,000 for the Anaheim Resort Transit to fund buses for Disneyland,
$270,000 for wool research in Montana and Wyoming, $72,000 for the
study by the National Institute of Health on dorm room wall decorations
and Web pages.
These are ridiculous expenditures that I believe are an embarrassment
to this body, and it is a good thing, and I think we all agree, to have
the President have the ability to bring those things out and send it
back and have us vote on those things in the light of day instead of
tucking them in big appropriations bill.
Mr. SPRATT. Mr. Chairman, I yield 1 minute to the gentleman from
Texas (Mr. Stenholm).
Mr. STENHOLM. Mr. Chairman, sometimes it is rather amusing if you
have been around for a few years, as I have. The last time this was
seriously discussed, my friends on this side of the aisle opposed it.
They believe the expedited rescission was a bad idea and that we ought
to go with line-item veto. The person that interjected taxes into this
was Bob Michel, the minority leader, in suggesting that if you really
want to do this in a way in which it will work, you put everything on
the table.
The gentleman from South Carolina (Mr. Spratt) supported that, and
today it is why it is so difficult. The gentleman from Iowa (Chairman
Nussle) was talking about, it is us. It is we. It is pretty difficult
for ``we'' to work on things when we keep changing what we think
because of the current political environment that we have.
Mr. Chairman, I am happy to yield to the gentleman from Wisconsin
(Mr. Ryan).
Mr. RYAN of Wisconsin. Mr. Chairman, a couple of us were not in
Congress back then when you guys decided that, so we have been
consistent.
Mr. STENHOLM. I know, but it is great. You can come in here and get
85 votes, and it does not get things done. We can get 300 votes.
Mr. CASTLE. Mr. Chairman, I rise today in support of the Ryan/Castle/
Stenholm amendment. I have supported this executive power in many
forms, but I see this amendment as a version that all of us can stand
behind.
Under this power, the President, regardless of party, may submit to
Congress, provisions from a spending bill that he deems wasteful. The
difference between our approach, and the Line-Item Veto which was
overturned by the Supreme Court in 1998, is that Congress remains the
deciding factor. The power of the purse remains in the hands of
Congress.
This ``expedited'' rescission is intended to ensure a vote on those
rescission requests sent from the President. Under expedited
rescission, Congressional approval would still be necessary to cancel
the funding by an up-or-down vote on an individual spending provision.
I believe that Congressional power is actually increased under this
amendment--because Members are able to exercise more discretion over
wasteful spending. Additionally, I believe that under this provision,
Members will hesitate to abuse the practice of earmarking funds when
they are held accountable to the full House.
The Line Item Veto Act of 1996 amended the Congressional Budget and
Impoundment Control Act of 1974, to give the President ``enhanced
rescission authority'' to cancel certain items. The President was only
to exercise the cancellation authority if he determined that such
cancellation would reduce the federal budget deficit and would not
impair essential government functions or harm the national interest;
and then notified the Congress. The act provided 30 days for the
expedited congressional consideration of disapproval bills to reverse
the cancellations from the President.
When the Supreme Court overturned the Line item Veto in 1998, the
subsequent policy discussions produced alternative versions that would
address issues of Constitutionality. This enhanced rescission would
give lawmakers the ability to clean up waste in spending bills while
protecting the priorities of the bill.
We believe that this amendment has the opportunity to eliminate
wasteful and abusive spending, while maintaining Congressional power of
the purse and I encourage my colleagues to support Ryan/Castle/
Stenholm.
The CHAIRMAN pro tempore (Mr. Bass). The question is on the amendment
offered by the gentleman from Wisconsin (Mr. Ryan).
The question was taken; and the Chairman pro tempore announced that
the ayes appeared to have it.
Mr. RYAN of Wisconsin. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Wisconsin
(Mr. Ryan) will be postponed.
It is now in order to consider in sequence amendments numbered 10
through 14 printed in House Report 108-566. The Chair has been advised
that the amendments will not be offered.
Amendment No. 15 in the Nature of a Substitute Offered by Mr. Spratt
Mr. SPRATT. Mr. Chairman, I offer an amendment in the nature of a
substitute.
The CHAIRMAN pro tempore. The Clerk will designate the amendment in
the nature of a substitute.
The text of the amendment in the nature of a substitute is as
follows:
Amendment No. 15 in the Nature of a Substitute Offered by
Mr. Spratt
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Budget Enforcement Act of
2004''.
SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS.
(a) Discretionary Spending Limits.--(1) Section 251(c)(1)
of the Balanced Budget and Emergency Deficit Control Act of
1985 (relating to fiscal year 2004) is amended--
(A) in subparagraph (A), by striking ``$31,834,000,000''
and inserting ``$28,052,000,000''; and
(B) in subparagraph (B), by striking ``$1,462,000,000'' and
inserting ``$1,436,000,000'' and by striking
``$6,629,000,000'' and inserting ``$6,271,000,000''.
(2) Section 251(c)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by inserting a dash
after ``2005'', by redesignating the remaining portion of
such paragraph as subparagraph (D) and by moving it two ems
to the right, and by inserting after the dash the following
new subparagraphs:
``(A) for the general purpose discretionary category:
$832,474,000,000 in new budget authority and $870,895,000,000
in outlays;
``(B) for the highway category: $30,585,000,000 in outlays;
and
``(C) for the mass transit category: $1,554,000,000 in new
budget authority and $6,787,000,000 in outlays; and''.
(3) Section 251(c)(3) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by inserting a dash
after ``2006'', by redesignating the remaining portion of
such paragraph as subparagraph (D) and by moving it two ems
to the right, and by inserting after the dash the following
new subparagraphs:
``(A) for the general purpose discretionary category:
$856,879,000,000 in new budget authority and $865,993,000,000
in outlays;
``(B) for the highway category: $33,271,000,000 in outlays;
and
[[Page H5007]]
``(C) for the mass transit category: $1,671,000,000 in new
budget authority and $7,585,000,000 in outlays; and''.
(4) Section 251(c) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by redesignating
paragraphs (4) through (9) as paragraphs (7) through (12) and
inserting after paragraph (3) the following new paragraphs:
``(4) with respect to fiscal year 2007--
``(A) for the highway category: $35,248,000,000 in outlays;
and
``(B) for the mass transit category: $1,785,000,000 in new
budget authority and $8,110,000,000 in outlays;
``(5) with respect to fiscal year 2008--
``(A) for the highway category: $36,587,000,000 in outlays;
and
``(B) for the mass transit category: $1,890,000,000 in new
budget authority and $8,517,000,000 in outlays; and
``(6) with respect to fiscal year 2009--
``(A) for the highway category: $37,682,000,000 in outlays;
and
``(B) for the mass transit category: $2,017,000,000 in new
budget authority and $8,968,000,000 in outlays;''.
(b) Definitions.--Section 250(c)(4) of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended--
(1) in subparagraph (B), by--
(A) striking ``the Transportation Equity Act for the 21st
Century and the Surface Transportation Extension Act of
2003'' and inserting ``the Transportation Equity Act: A
Legacy for Users''; and
(B) inserting before the period at the end the following
new clauses:
``(v) 69-8158-0-7-401 (Motor Carrier Safety Grants).
``(vi) 69-8159-0-7-401 (Motor Carrier Safety Operations and
Programs).'';
(2) in subparagraph (C), by--
(A) inserting ``(and successor accounts)'' after ``budget
accounts''; and
(B) striking ``the Transportation Equity Act for the 21st
Century and the Surface Transportation Extension Act of 2003
or for which appropriations are provided pursuant to
authorizations contained in those Acts (except that
appropriations provided pursuant to section 5338(h) of title
49, United States Code, as amended by the Transportation
Equity Act for the 21st Century, shall not be included in
this category)'' and inserting ``the Transportation Equity
Act: A Legacy for Users or for which appropriations are
provided pursuant to authorizations contained in that Act'';
and
(3) in subparagraph (D)(ii), by striking ``section 8103 of
the Transportation Equity Act for the 21st Century'' and
inserting ``section 8103 of the Transportation Equity Act: A
Legacy for Users''.
SEC. 3. ADJUSTMENTS TO ALIGN HIGHWAY SPENDING WITH REVENUES.
Subparagraphs (B) through (E) of section 251(b)(1) of the
Balanced Budget and Emergency Deficit Control Act of 1985 are
amended to read as follows:
``(B) Adjustment to align highway spending with revenues.--
(i) When the President submits the budget under section 1105
of title 31, United States Code, OMB shall calculate and the
budget shall make adjustments to the highway category for the
budget year and each outyear as provided in clause
(ii)(I)(cc).
``(ii)(I)(aa) OMB shall take the actual level of highway
receipts for the year before the current year and subtract
the sum of the estimated level of highway receipts in
subclause (II) plus any amount previously calculated under
item (bb) for that year.
``(bb) OMB shall take the current estimate of highway
receipts for the current year and subtract the estimated
level of receipts for that year.
``(cc) OMB shall add one-half of the sum of the amount
calculated under items (aa) and (bb) to the obligation
limitations set forth in the section 8103 of the
Transportation Equity Act: A Legacy for Users and, using
current estimates, calculate the outlay change resulting from
the change in obligations for the budget year and the first
outyear and the outlays flowing therefrom through subsequent
fiscal years. After making the calculations under the
preceding sentence, OMB shall adjust the amount of
obligations set forth in that section for the budget year and
the first outyear by adding one-half of the sum of the amount
calculated under items (aa) and (bb) to each such year.
``(II) The estimated level of highway receipts for the
purposes of this clause are--
``(aa) for fiscal year 2004, $30,572,000,000;
``(bb) for fiscal year 2005, $34,260,000,000;
``(cc) for fiscal year 2006, $35,586,000,000;
``(dd) for fiscal year 2007, $36,570,000,000;
``(ee) for fiscal year 2008, $37,603,000,000; and
``(ff) for fiscal year 2009, $38,651,000,000.
``(III) In this clause, the term `highway receipts' means
the governmental receipts credited to the highway account of
the Highway Trust Fund.
``(C) In addition to the adjustment required by
subparagraph (B), when the President submits the budget under
section 1105 of title 31, United States Code, for fiscal year
2006, 2007, 2008, or 2009, OMB shall calculate and the budget
shall include for the budget year and each outyear an
adjustment to the limits on outlays for the highway category
and the mass transit category equal to--
``(i) the outlays for the applicable category calculated
assuming obligation levels consistent with the estimates
prepared pursuant to subparagraph (D), as adjusted, using
current technical assumptions; minus
``(ii) the outlays for the applicable category set forth in
the subparagraph (D) estimates, as adjusted.
``(D)(i) When OMB and CBO submit their final sequester
report for fiscal year 2004, that report shall include an
estimate of the outlays for each of the categories that would
result in fiscal years 2005 through 2009 from obligations at
the levels specified in section 8103 of the Transportation
Equity Act: A Legacy for Users using current assumptions.
``(ii) When the President submits the budget under section
1105 of title 31, United States Code, for fiscal year 2006,
2007, 2008, or 2009, OMB shall adjust the estimates made in
clause (i) by the adjustments by subparagraphs (B) and (C).
``(E) OMB shall consult with the Committees on the Budget
and include a report on adjustments under subparagraphs (B)
and (C) in the preview report.''.
SEC. 4. LEVEL OF OBLIGATION LIMITATIONS.
(a) Highway Category.--For the purposes of section 251(b)
of the Balanced Budget and Emergency Deficit Control Act of
1985, the level of obligation limitations for the highway
category is--
(1) for fiscal year 2004, $34,309,000,000;
(2) for fiscal year 2005, $35,671,000,000;
(3) for fiscal year 2006, $36,719,000,000;
(4) for fiscal year 2007, $37,800,000,000;
(5) for fiscal year 2008, $38,913,000,000; and
(6) for fiscal year 2009, $40,061,000,000.
(b) Mass Transit Category.--For the purposes of section
251(b) of the Balanced Budget and Emergency Deficit Control
Act of 1985, the level of obligation limitations for the mass
transit category is--
(1) for fiscal year 2004, $7,266,000,000;
(2) for fiscal year 2005, $7,750,000,000;
(3) for fiscal year 2006, $8,266,000,000;
(4) for fiscal year 2007, $8,816,000,000;
(5) for fiscal year 2008, $9,403,000,000; and
(6) for fiscal year 2009, $10,029,000,000.
For purposes of this subsection, the term ``obligation
limitations'' means the sum of budget authority and
obligation limitations.
SEC. 5. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.
Section 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended ``2002'' both places it
appears and inserting ``2009''.
SEC. 6. REPORTS.
Subsections (c)(2) and (f)(2)(A) of section 254 of the
Balanced Budget and Emergency Deficit Control Act of 1985 are
amended by striking ``2002'' and inserting ``2006 (or 2009
solely for purposes of enforcing the discretionary spending
limits for the highway and mass transit categories)''.
SEC. 7. EXPIRATION.
Section 275(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by striking ``2002'' and
inserting ``2006 (or 2009 solely for purposes of enforcing
the discretionary spending limits for the highway and mass
transit categories)'' and by striking ``2006'' and inserting
``2013''.
SEC. 8. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND
EMERGENCY DEFICIT CONTROL ACT OF 1985.
Part C of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended as follows:
(1) In section 250(a), strike ``SEC. 256. GENERAL AND
SPECIAL SEQUESTRATION RULES'' and insert ``Sec. 256. General
and special sequestration rules'' in the item relating to
section 256.
(2) In subparagraphs (F), (G), (H), (I), (J), and (K) of
section 250(c)(4), insert ``subparagraph'' after ``described
in'' each place it appears.
(3) In section 250(c)(18), insert ``of'' after
``expenses''.
(4) In section 251(b)(1)(A), strike ``committees'' the
first place it appears and insert ``Committees''.
(5) In section 251(b)(1)(C)(i), strike ``fiscal years'' and
insert ``fiscal year''.
(6) In section 251(b)(1)(D)(ii), strike ``fiscal years''
and insert ``fiscal year''.
(7) In section 252(b)(2)(B), insert ``the'' before ``budget
year''.
(8) In section 252(c)(1)(C)(i), strike ``paragraph (1)''
and insert ``subsection (b)''.
(9) In section 254(c)(3)(A), strike ``subsection'' and
insert ``section''.
(10) In section 254(f)(4), strike ``subsection'' and insert
``section'' and strike ``sequesterable'' and insert
``sequestrable''.
(11) In section 255(g)(1)(B), move the fourteenth
undesignated clause 2 ems to the right.
(12) In section 255(g)(2), insert ``and'' after the
semicolon at the end of the next-to-last undesignated clause.
(13) In section 255(h)--
(A) strike ``and'' after the semicolon in the ninth
undesignated clause;
(B) insert ``and'' after the semicolon at the end of the
tenth undesignated clause; and
(C) strike the semicolon at the end and insert a period.
(14) In section 256(k)(1), strike ``paragraph (5)'' and
insert ``paragraph (6)''.
(15) In section 257(b)(2)(A)(i), strike ``differenes'' and
insert ``differences''.
The CHAIRMAN pro tempore. Pursuant to House Resolution 692, the
gentleman from South Carolina (Mr. Spratt) and a Member opposed each
will control 15 minutes.
The Chair recognizes the gentleman from South Carolina (Mr. Spratt).
Mr. SPRATT. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, this substitute would extend the so-called PAYGO rule
[[Page H5008]]
through September 30, 2009, to require that both the cost of all net
direct, mandatory or entitlement spending increases and all tax cuts
both, this is two-edged, double-edged PAYGO, enacted during a session
be fully offset. In other words, this amendment would reinstate the
rules that expired two years ago, the rule that is applicable to
entitlement increases, the rule that is applicable to tax cuts known as
the PAYGO rule.
In addition, this amendment would set total discretionary spending
limits for 2005 and 2006 equal to the levels in the Democratic budget
resolution which we offered on the House floor a few months ago. There
are no total funding caps for other years.
Like H.R. 4663, it specifies that annual mass transit and highway
funding for each year through 2009 will be set at the levels also
included in the House-passed transportation reauthorization bill, known
as TEA-LU.
Mr. Chairman, in the 1980s and 1990s, as we have struggled with
deficits and as the effects of Gramm-Rudman-Hollings fizzled out,
various rules, some of which have been surfaced on the House floor
tonight, were proposed and tried. Two, however, emerged as meritorious
and were included in what became the Budget Enforcement Act of 1991. It
was a spin-off from the Bush Budget Summit in the year 1990. These were
the disciplinary tools to implement the Bush Budget Summit Agreement,
which really has not gotten the credit it is due for laying the
foundation for what we accomplished in the 1990s. Neither have these
rules gotten the full credit of their due, but they got a nice accolade
from a source who admitted that he was a cynic, if not a skeptic, at
that time, Chairman Alan Greenspan of the Federal Reserve.
He told our committee, the Committee on the Budget, just a few weeks
ago when we asked him about the renewal of these rules, if he thought
from his observation as an outside observer of the budget that these
were worthwhile tools. He said, you know, I was a skeptic. I did not
think they would work. I thought they were diversionary tactic, but I
have been proven wrong. They were remarkably effective.
And when we questioned him and asked him, he said, I would reinstate
both rules, both the discretionary spending caps, and I would reinstate
the pay-as-you-go rule, which provides that if you want to have a tax
cut when you have got a deficit, then you have to make it deficit
neutral; you have to have an offset. You either cut entitlement
spending one place in the budget, or you increase revenues as an offset
in another place.
And by the same token, if you want to enhance an entitlement, you
have got to identify a revenue stream to pay for it, or you have to
have a commensurate cut and another entitlement program elsewhere in
the budget so that in all respects, they are deficit neutral at the end
of the session.
These two rules, the PAYGO rule, the double-edged PAYGO rule and the
statutory spending caps on discretionary spending, are the heart and
soul of this particular substitute that I am offering here. This cuts
to the very core.
Rather than go through all of these convoluted rules, let us go back
to two rules that work. Let us be pragmatic. Let us pick from the past
experience that we have had those rules that contributed the most to
our success in the 1990s, and after all, we moved the budget from a
$290 deficit to a $236 surplus in six fiscal years, and these two rules
helped us do it.
They have both expired now. We could do a world of good for the
budget process, for the budget, for the deficit, by reinstating these
two rules, and really, it is all we need to do that and fixing
realistically discretionary spending caps.
Let me say, we proposed 5 years of spending caps. The chairman has
reduced his effort to just 2 years. In an effort to get something that
he could possibly pass over there, he went with two years. I really do
not think we have effective discretionary spending limits unless we
have longer terms than that. So we have a 5-year spending limitation on
discretionary spending, and I should acknowledge that we have set this
a bit above current service, a bit above the CBO baseline. Why did we
do that? Because we fully accommodated the President's defense request,
nondefense discretionary, and our cap is pretty close to baseline,
pretty close to current services, just a bit over.
Total discretionary is somewhat more in excess of the CBO baseline
because we followed the President's defense members. We put in the $50
billion this year for the Iraq and Afghanistan and supplemental
expenses. That is realistic, and there is one rule that we learned in
the 1990s we should apply here, too. It applies to the 1997 budget
which was uniquely successful when we set the statutory caps on
discretionary spending at a very, very tight and unrealistic level.
When we got to the ideas, we fudged on them substantially and that is
primarily because partly because we set them too tight to start with.
Here, we have set them realistically. We have got two rules that work.
They have proved their worth.
The chairman of the Federal Reserve says I do not see why you would
not reinstate them and make the PAYGO rule in particular applicable to
tax cuts as well as entitlement increases. I submit to the House, if we
want to do something tonight, if we want some concrete, valuable
outcome for all of our efforts, these two things would do a world of
good, and we could leave here feeling that we had done something good
for the budget and something successful tonight.
Mr. Chairman, I reserve the balance of my time.
Mr. NUSSLE. Mr. Chairman, I claim the time in opposition, and I yield
2 minutes to the gentleman from Pennsylvania (Mr. Toomey).
Mr. TOOMEY. Mr. Chairman, I thank the chairman for the time, and I
would like to stress there are two big problems with this approach and
reasons that I oppose this amendment.
First of all, with respect to the discretionary spending caps, I
commend the gentleman from South Carolina for extending them longer
than we have in our bill. I think it is a constructive idea.
Unfortunately, he starts off with caps at higher levels so we end up
spending considerably more money, not only in the first couple of
years, but thereafter as well, and so I have to strongly disagree with
that approach on the discretionary spending caps side.
I also want to talk about the change that the gentleman from South
Carolina proposes with regards to the PAYGO provisions and specifically
the idea that we ought to apply this PAYGO provision to the tax cuts,
as well as to the mandatory spending increases, which is what we have
in the majority bill.
Now, obviously the superficial appeal of this idea is that both an
increase in mandatory spending or a decrease in taxes appear to have
the same directional effect on the size of the deficit in the short
run. With respect to the government's budget, that is, of course, true,
but there is something I think much more important here. The fact is
that increasing spending and cutting taxes are not equivalent to the
American people because the former, increasing mandatory spending,
which we try to control, that slows down economic growth, and it
reduces personal freedom, but the latter, cutting taxes, that
accelerates economic growth and it expands personal freedom. The
difference is just night and day.
In addition to that, the former, which is to say increasing mandatory
spending, which we control in our bill, in the absence of that
constraint which we impose, then we definitely increase the size of the
structural deficit. That is clearly a problem that we are trying to
rein in.
On the other hand, as we have seen time and time again, when you
lower the tax burden, essentially you do it right by lowering marginal
tax rates. You, in fact, improve the deficit picture over the long run
as accelerating economic growth and enhancing revenue.
So I would urge my colleagues to reject this amendment and support
the underlying bill.
Mr. NUSSLE. Mr. Chairman, I yield myself such time as I may consume.
Let me just make a couple of comments, and then we have no other
speakers, and I would be ready to yield back the balance of our time.
Let me just say, first of all, the gentleman from Pennsylvania said
it very well. Let me just underscore a couple of things.
We have had number of votes on the floor, and I understand we may
have
[[Page H5009]]
yet another one tonight as a motion to recommit with regard to PAYGO
for taxes, as it has been called here on the floor, and every time this
year we rejected that, and we basically said, look, the only people who
pay for taxes are taxpayers. The government does not have to pay for
taxes because the government is not the one that pays taxes. It is
taxpayers that pay for taxes.
So we have made it very clear that tonight we want to discuss
spending, mandatory spending, discretionary spending. That is the
reason we apply the PAYGO provisions to mandatory spending, and it is
the reason why we set discretionary caps.
What the gentleman from South Carolina (Mr. Spratt) has done follows
that exact rubric. He has a PAYGO provision, but he extends it to
revenue; therefore, I would oppose that.
On the discretionary side, he increases spending above the caps where
we are now or above the budget resolution by $12.5 billion. In my
estimation, that is unnecessary spending at this time. Certainly, as we
all know, during the appropriation process many people will come to the
floor and suggest that we could spend money on this or we could spend
more money on that or we could increase over here or we could increase
over there, but again, so many of our colleagues on both sides have
talked about restraining spending. I do not believe an increase in the
cap is what we need to do.
So I would oppose the amendment. The discretionary cap does not need
to be lifted an additional $12.5 billion, number one; and number two,
we do not believe that anyone in this country pays for taxes except
taxpayers. Therefore, I would oppose the amendment as a substitute.
As I said to the gentleman from South Carolina (Mr. Spratt), we have
no other speakers.
Mr. Chairman, I reserve the balance of our time.
{time} 2045
Mr. SPRATT. Could the Chair please advise me how much time I have?
The CHAIRMAN pro tempore (Mr. Bass). The gentleman from South
Carolina has 8\1/2\ minutes remaining.
Mr. SPRATT. Mr. Chairman, I yield myself 6 minutes.
Mr. Chairman, once again what we are trying to do here is to cut
through all the rhetoric, go through all of these complicated rules,
sometimes convoluted rules, and come up with two basic rules, two
pragmatic rules that have proven themselves over a period of 10 years
to work and work well. Indeed, they were part of the success we enjoyed
in the 1990s when we moved the budget from a deficit of $290 billion in
1992 to a surplus of $236 billion in the year 2000.
First of all, we would impose a statutory cap on discretionary
spending at a level that we think is realistic. And what do we mean by
that? We take current services, basically treading water, with
inflationary adjustment, and we add to it the Bush defense budget. But
we want to make a point here, and that is this is the totality of
domestic nonhomeland discretionary spending in the budget. This is one-
sixth of the budget. Wipe it all out, you do not have an FBI, you do
not have a court system, you do not have a Park Service, you do not
have highways; but you still have a deficit, notwithstanding the fact
you have wiped the whole thing out.
If you look back over the last 4 years, what is the source of this
spending that everybody is decrying tonight? What you find is it
certainly is not domestic nonhomeland security; 383, 382, 383. Now, Mr.
Bush said he would like to cut it down to $376 billion. Well and good.
This is one of the reasons the appropriators are out here tonight. They
are struggling with the attainment of that goal. That saves $7 billion
on a deficit that is estimated at over $400 billion next year. That is
how much blood you can squeeze out of this turnip.
Where then have the cost increases come from? This chart tells it
all. These bar charts show 2001, 2002, 2003, 2004, and they show that
90 to 95 percent of the increase in spending in those four fiscal years
occurred in defense, homeland security, and the response to 9/11, not
in what we call domestic nondefense discretionary spending. Therefore,
the cap will have an effect, but not a great effect.
Basically, what we have done is we have capped nondefense
discretionary spending at a current services level. We provided, as I
said, realistically for the Bush defense budget for the other half of
discretionary spending in the cap we have set.
Complicated chart. It says one thing in particular. When Bush came to
office, when the President came to office several years ago, the Bush
defense budget, the defense budget for the next 10 years was $3.6
trillion. Today, by our calculation, it is more like $5 trillion. We
have seen defense spending go up over that time frame by $1.4 trillion.
And what about revenues? This is where the Bush administration told
us revenues would go if we had tax cuts as we did in 2001, 2002 and
2003; that they would follow this blue dotted line. They have not
followed the blue dotted line. They have taken a precipitous decline
downward over this period of time from over $1 trillion to less than
$800 billion in a period of about 3 or 4 fiscal years.
So if you want to solve the problem, you have to get to the source of
the problem. You have to go to the budget and look at where the problem
exists, and you cannot rule out revenues and expect to resolve a $521
billion estimate. That was the last official estimate we got from OMB
of a deficit for this year.
That is why we have, number one, spending caps on discretionary
spending at realistic levels that accommodate for defense. Get real. We
are not going to be reining in those accounts by any substantial amount
in the near future, given our obligations that are still being worked
out.
And, secondly, we have acknowledged that revenues are a significant
part of the problem. Indeed, when we resolved the problem of the
deficit in the 1990s, and CBO looked back on it, they said 48 percent
of your success was due to the fact that you were able to enhance
revenues, 52 percent was due to the fact you curbed spending. Those two
together produced the phenomenal results we enjoyed in the 1950s.
Here it is right here. It can be done. The Clinton administration
came to office and outlays were 22 percent of GDP. When he left office,
outlays had been reduced to about 18 percent of GDP. Revenues were
about 17 to 18 percent of GDP. They were taken up over 20 percent of
GDP. And there is the measure of the success in the Clinton
administration right there, the $200 billion surplus we have been
talking about.
And here is what happened with the Bush administration. Revenues have
plummeted and spending outlays have gone up. But outlays are still
below historic norms. Revenues, however, are pretty close to historic
levels. Income taxes, as a percent of GDP, are about where they were in
1950.
So you have to do all these things to have a successful budget
process package, and that is why we suggest to you we have got before
you now in this substitute a package of two simple and basic rules
which we say to you pragmatically worked, worked phenomenally well, and
ought to be reinstated so we can tackle this difficult problem and
approach it and try to begin working down the deficit.
I would suggest to the House that this would be the simplest way and
the best way to resolve this whole debate. Adopt this substitute and
wrap it up by reinstating the PAYGO rule with a double edge applicable
to tax cuts and spending increases alike.
Mr. Chairman, I reserve the balance of my time.
Mr. NUSSLE. Mr. Chairman, I reserve the balance of my time, and I am
prepared to yield back.
Mr. SPRATT. Mr. Chairman, I yield 1 minute to the gentleman from
North Dakota (Mr. Pomeroy).
Mr. POMEROY. Mr. Chairman, I thank the gentleman for yielding me this
time.
We would have liked the opportunity to present an amendment to this
bill that teed up cleanly the prospects of pay-as-you-go, including
both the revenue and spending sides. Remember, pay-as-you-go on
spending. That does not mean anything, because a budget is revenue and
a budget is outflow. If you only do outflow without revenue, you will
never get to balance. Never get to balance. It is not even a serious
effort.
What did they do to the request we had to have a clean vote on it,
the request by the Blue Dogs? They did not
[[Page H5010]]
make it in order in the Committee on Rules. We have been working the
last several hours through 19 amendments. They have made every
cockamamie idea under the sun in order. But when we wanted to have a
straight pay-as-you-go to address this budget deficit, it was not made
in order. It again shows why I believe the underlying bill is not a
serious effort in budgeting whatsoever, and the effort put forward by
my friend and colleague, the gentleman from South Carolina (Mr.
Spratt), represents an alternative in a bad situation. That is a
situation we should support.
Mr. SPRATT. Mr. Chairman, I yield the balance of my time to the
gentlewoman from California (Ms. Pelosi), the minority leader.
Ms. PELOSI. Mr. Chairman, I thank the gentleman from South Carolina
(Mr. Spratt) for yielding me this time, but more especially for the
excellent leadership that he has provided as the ranking member on the
Committee on the Budget, and I thank him for bringing this substitute
to the floor.
I think it would be really very important for the American people to
understand the standing that the gentleman from South Carolina (Mr.
Spratt) has on this issue. He has, without any inkling of partisanship,
addressed the issues of a fiscal soundness for our country and a budget
that reflects our values in a way that has been, again, nonpartisan,
professional, and responsible. He knows the facts and the figures. He
takes responsibility for what he puts forth and will answer and defend
the conclusions that he advances. So when he speaks about his own
substitute that will lead to reducing the deficit, you can take him at
his word. When he introduces this substitute for pay-as-you-go, it is
as responsible as it sounds.
Earlier in the debate, on the Obey amendment, one of our Republican
colleagues said there is no such thing as a free lunch. This pay-as-
you-go budget really validates that statement, because it says in order
for us to provide for the needs and the aspirations of the American
people, we must do so in a fiscally sound way, and we must not fool
ourselves about the consequences of our actions.
You can talk all day about the dynamic, as our Republican colleagues
would say, about the dynamic impact of their tax cuts. They have been
cutting taxes and cutting taxes and cutting taxes. Democrats like tax
cuts too. We wanted to cut the taxes for the middle class. We want to
cut the taxes for Americans who will then spend the money and put it
back into the economy, injecting demand into the economy, creating
jobs, growing the economy to create jobs.
We want to use our investments in our budget to invest in education.
There is no better investment that we can make in terms of helping and
meeting the needs and aspirations of the American people in terms of
educating them, early childhood, K through 12, higher ed, post-graduate
and life-time learning. And nothing does more to grow the economy and
bring money into the Federal Treasury than to educate the American
people.
So the investments that we talk about with pay-as-you-go are
investments that bring money into the Treasury, that put tax cuts where
they belong, where they will generate jobs and, again, inject demand.
The gentleman from South Carolina (Mr. Spratt) very, very carefully
presented to us how the pay-as-you-go, when it was in effect, created a
situation where we had zero deficit in 1999. This was not an accident.
It was not a fluke. It was part of a plan. It was not a situation where
we kept trying one thing and another. It was part of a plan. When the
pay-as-you-go expired, we now have returned to these growing deficits;
this year, $.5 trillion, a historically large deficit.
So, Mr. Chairman, when the Republicans say that we should subscribe
to their reckless economic plan because it is going to create jobs, the
success of their economic plan has not hit home for middle-class
Americans. Yes, some jobs have been created, but they have been lower-
paying jobs than the ones that were lost. The purchasing power of
Americans has not increased. In fact, the increase in wages since this
spring, since March, has been about a nickel. About a nickel. So that
is not an economic policy that has been successful for middle-class
Americans.
Their policy about tax cuts has been to go to those who need them
least. Most of those people know they do not need the tax cuts and
would rather they be investments into our society for educating our
children. They do not want to, on top of it all, grow the deficit. We
keep feeling the effects of that policy in lost jobs, wages that do not
keep pace with inflation, and most dramatically, again, in record
budget deficits.
When President Bush took office, as was indicated by the charts the
gentleman from South Carolina (Mr. Spratt) showed, we were on a path to
a $5.6 trillion surplus. A $5.6 trillion surplus. Today, the budget
deficit is projected to be over $3 trillion over the next 10 years, a
$9 trillion fiscal collapse. We now have a deficit again for this year
that is more than $.5 trillion for 1 year alone. That is an astounding
burden on our children.
{time} 2100
We should be giving our children opportunity, not fiscal obligations
because of the Republicans' reckless economic policies.
These deficits matter. Federal Reserve Chairman Alan Greenspan has
said, ``History suggests that an abandonment of fiscal discipline will
eventually push up interest rates, crowd out capital spending, lower
productivity growth, and force harder choices upon us in the future.''
Economists agree, deficits are a drag on the economy. Higher deficits
mean higher interest rates, which mean families pay more for homes,
cars and college tuition. Higher deficits mean lower incomes. And
higher deficits mean fewer good-paying jobs.
Our country is at a crossroads on this issue, Mr. Chairman, and today
we can choose between two distinct paths. One, as the gentleman from
South Carolina suggests, is the road back to fiscal responsibility. The
other is the road to fiscal ruin. The road to fiscal responsibility
runs right through the Democratic substitute offered by the gentleman
from South Carolina, which would put the budget on a pay-as-you-go
system in which both tax cuts and spending increases must be paid for,
a real pay-as-you-go system.
Alan Greenspan agrees. He recently testified before the Senate
Banking Committee that pay-as-you-go should apply to both taxes and
spending. These rules were in effect throughout the 1990s, as was
mentioned, and they were effective. As a result of these rules, we
turned record deficits that we had received into the 1990s into record
surpluses as we left the 1990s. We could do it again today. The road to
fiscal ruin runs through the unrestrained deficits of the Republican
proposal. The Republican bill on the floor today is a sham. It steals
the mantle of pay-as-you-go without requiring the discipline that real
pay-as-you-go would require. By failing to offset tax cuts, the
Republican bill will make the deficit even worse.
The issue is simple: The Democratic pay-as-you-go proposal has a
record of success. The Republican approach has a record of deficits. If
you want to return to fiscal responsibility, vote for the Democratic
substitute on pay-as-you-go.
Mr. Chairman, I again want to salute the gentleman from South
Carolina and again commend what he has to say to the American people
because he speaks truth about the budget and about the deficit. He
knows of what he speaks. He knows the discipline that is needed to
reduce the deficit. We are all blessed by his leadership.
Mr. NUSSLE. Mr. Chairman, I yield myself the balance of my time.
First of all I would say to the very distinguished minority leader
that the gentleman from South Carolina is a lot of things. He is a
professional. She has hit the nail on the head. I would just quarrel
with one comment she made and that is that he is nonpartisan. He is a
very effective partisan, I would just say. We get along very well. He
does it in a spirit that may appear to be nonpartisan at times, but he
is a very effective Democrat and I would never take that away from him.
He is a very effective spokesman for their philosophy, for their
priorities and while we sometimes disagree, it is okay that he can do
it in a partisan way and not a mean way at all, or a disagreeable way.
[[Page H5011]]
There are a couple of things I would just like to point out. First of
all, the reason we came to balance in 1999 was, as the minority leader
said, because we had a plan. That was a plan that was passed by this
Congress, this Republican Congress. Second, she said that there were
some jobs being created. Well, yes, some 1.4 million jobs since last
August alone. If you want to create more of them or if you want to make
sure that they get paid better salaries or if you want to make sure
that they have more job security, I would just suggest to you that
appropriating more money than we have in these huge increases for
education, that is not going to increase their salaries.
For our kids, it may help them out and that is why we are increasing
education, but that does not create more jobs. It does not increase
their salaries. Taxing small business like the proposal that the
gentleman from Wisconsin (Mr. Obey) brought to the floor earlier today
that we had the wisdom to defeat does not create jobs. In fact, most of
those people that were being taxed under his proposal were those small
businesses that are creating those jobs. Last but not least, you do not
create jobs by driving businesses overseas with our tax policy in this
country and many of the challenges that we have with our economy
continuing to drive those businesses overseas to look for opportunities
as opposed to allowing them to stay here and be competitive.
Reforming our trade laws and by voting to give the President the
ability to go in and negotiate those agreements is something that we
need to do.
We do have a plan. We have a budget. It has worked in the past. You
do not need a pay-as-you-go rule for taxes for the government to worry
about because the people who pay taxes in this country and pay for
taxes, who pay as they go with regard to taxes, are taxpayers. Every
time you increase taxes, they are the ones that pay. They pay as you
go. As you go for more taxes, they pay. That is what we do not need.
That is why we oppose the Spratt substitute, even though I can agree
with the gentlewoman that he is, by far, someone who is not only very
professional, but someone I am very pleased to work with.
I do it as gently as possible, but with obviously a note of
partisanship that we often have to have in order to support our
different sides of these issues.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise in opposition to the
base bill, H.R. 4663, the Spending Control Act of 2004 and in support
of the amendment as proposed by the gentleman from South Carolina. The
underlying bill proposes cuts before we even have a budget resolution
passed in Congress and is therefore premature.
The bill caps non-emergency discretionary funding for 2005 at $821.5
billion, essentially the same level as in the conference agreement on
the budget resolution. The conference agreement contains an additional
$50 billion in emergency funding for military operations in Afghanistan
and Iraq where we truly need it.
The conference report for this proposal provides $1.3 billion less
than what the House Veterans' Affairs Committee says is needed for
veterans health care programs for 2005. The allocation to the
Appropriations Subcommittee on Veterans-HUD-Independent Agencies is
$4.6 billion (4.7 percent) below the amount needed to maintain services
at the 2004 level, which could cause deep cuts to veterans' health
care.
This Administration must not continue to run up deficits because they
cause the government to use the surpluses of the Social Security Trust
Fund for other government purposes rather than to pay down the debt and
help our Nation prepare for the coming retirement of the Baby Boomers.
In essence, every dollar that we add to the Federal debt is a dollar
that our children will have to pay back in higher taxes or fewer
government benefits in the future.
The GOP PAYGO proposal would increase the Federal debt instead of
chip away at it. PAYGO will fail to help our deficit because it exempts
tax cuts from the enforcement rules, thereby precipitating the
introduction of more tax cuts that will bring us even deeper into the
red.
The Spratt Amendment is smart and will undo the mess that our friends
on the other side of the aisle have created. It would restore the
budget rules that aim to decrease the deficit. Reestablishing the
effective PAYGO rules for spending as well as for tax cuts, the
philosophy behind this amendment helped to turn record deficits into
record surpluses in the 1990's.
Mr. Chairman, we must stop using Social Security surpluses to fund
other government programs. We must stop creating more debt for our
children to pay off. We must continue the discipline of the budget
process.
Since President Bush took office, a projected ten-year surplus of
$5.6 trillion has turned into a projected deficit of $2.9 trillion--
which is a wrong turn worth $8.5 trillion. The substitutes offered by
Rep. Mark Kirk and by Rep. Bill Young include a similar PAYGO
provision. the substitute offered by Rep. Jeb Hensarling establishes an
equivalent point of order that applies only to mandatory spending, not
tax cuts.
The original PAYGO rule that applied to tax cuts as well as spending
was instrumental during the 1990s in bringing us from record deficits
to record surpluses. The original PAYGO rule was renewed in July 1997
on a bipartisan basis, with a large majority of the House Republicans--
including most of the Republican leadership--joining a large majority
of House Democrats in voting to extend the PAYGO requirement applying
to both tax cuts and mandatory spending.
Tax cuts have played a central role in producing the staggering
deficits we now face. The Congressional Budget Office reports that,
measured over the 2002-2011 budget window, $2.3 trillion of the fiscal
reversal that has occurred since January 2001 has been caused by tax
cuts and the debt service that come with them. Extending PAYGO to cover
only mandatory spending--as the Republican bill proposes--takes our
focus away from the deficit problem.
Mr. Chairman, I would urge my colleagues to support the Spratt
Amendment, and I oppose the base bill, H.R. 4663.
Mr. NUSSLE. Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore (Mr. Bass). The question is on the amendment
in the nature of a substitute offered by the gentleman from South
Carolina (Mr. Spratt).
The question was taken; and the Chairman pro tempore announced that
the noes appeared to have it.
Mr. SPRATT. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from South
Carolina (Mr. Spratt) will be postponed.
Sequential Votes Postponed in Committee of the Whole
The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII,
proceedings will now resume on those amendments on which further
proceedings were postponed, in the following order: amendment No. 6
offered by the gentleman from Illinois (Mr. Kirk), amendment No. 7
offered by the gentleman from Wisconsin (Mr. Ryan), amendment No. 8
offered by the gentleman from Wisconsin (Mr. Ryan), amendment No. 9
offered by the gentleman from Wisconsin (Mr. Ryan), and amendment in
the nature of a substitute No. 15 offered by the gentleman from South
Carolina (Mr. Spratt).
The Chair will reduce to 5 minutes the time for any electronic vote
after the first vote in this series.
Amendment No. 6 Offered by Mr. Kirk
The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on the amendment offered by the gentleman from Illinois
(Mr. Kirk) on which further proceedings were postponed and on which the
ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 289,
noes 121, not voting 23, as follows:
[Roll No. 310]
AYES--289
Akin
Alexander
Bachus
Baird
Ballenger
Barrett (SC)
Bartlett (MD)
Bass
Beauprez
Berry
Biggert
Bilirakis
Bishop (UT)
Blackburn
Blumenauer
Blunt
Boehlert
Bonner
Bono
Boozman
Boswell
Boyd
Bradley (NH)
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burns
Burr
Burton (IN)
Buyer
Calvert
Camp
Cannon
Cantor
Capito
Capps
Capuano
Cardoza
Carson (OK)
Carter
Case
Castle
Chabot
Chandler
Chocola
Coble
Cole
Cooper
Costello
Cox
Cramer
Crane
Crenshaw
Cubin
Culberson
Cunningham
Davis (CA)
Davis (FL)
Davis (TN)
Davis, Jo Ann
Deal (GA)
DeFazio
Delahunt
DeLay
[[Page H5012]]
DeMint
Diaz-Balart, L.
Diaz-Balart, M.
Dooley (CA)
Doolittle
Dreier
Duncan
Dunn
Ehlers
Emerson
English
Eshoo
Feeney
Ferguson
Flake
Foley
Forbes
Ford
Franks (AZ)
Frelinghuysen
Frost
Gallegly
Garrett (NJ)
Gerlach
Gibbons
Gilchrest
Gillmor
Gingrey
Goode
Goodlatte
Gordon
Graves
Green (TX)
Green (WI)
Greenwood
Gutknecht
Hall
Harman
Harris
Hart
Hayes
Hayworth
Hefley
Hensarling
Herger
Herseth
Hill
Hobson
Hoeffel
Hoekstra
Holden
Hooley (OR)
Hostettler
Houghton
Hulshof
Hunter
Hyde
Inslee
Isakson
Israel
Issa
Istook
Jenkins
John
Johnson (CT)
Johnson (IL)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
Kennedy (RI)
Kind
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kolbe
Lampson
Langevin
Lantos
Larsen (WA)
Latham
Leach
Levin
Lewis (KY)
Linder
Lipinski
LoBiondo
Lofgren
Lucas (KY)
Lucas (OK)
Lynch
Majette
Maloney
Manzullo
Marshall
Matheson
McCarthy (NY)
McCotter
McCrery
McInnis
McIntyre
McKeon
McNulty
Meehan
Meek (FL)
Mica
Michaud
Miller (FL)
Miller (MI)
Miller (NC)
Miller, Gary
Miller, George
Moore
Moran (KS)
Murphy
Musgrave
Myrick
Napolitano
Neal (MA)
Nethercutt
Neugebauer
Ney
Northup
Norwood
Nunes
Nussle
Osborne
Ose
Otter
Oxley
Pascrell
Pastor
Paul
Pearce
Pence
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Pomeroy
Portman
Price (NC)
Pryce (OH)
Putnam
Ramstad
Regula
Rehberg
Renzi
Reynolds
Rogers (AL)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Ross
Royce
Ryan (OH)
Ryan (WI)
Ryun (KS)
Sanchez, Loretta
Sandlin
Schiff
Schrock
Scott (GA)
Scott (VA)
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherman
Sherwood
Shimkus
Shuster
Simmons
Skelton
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Souder
Spratt
Stearns
Stenholm
Stupak
Sullivan
Sweeney
Tancredo
Tanner
Tauscher
Taylor (MS)
Taylor (NC)
Terry
Thomas
Thompson (CA)
Thornberry
Tiahrt
Tiberi
Tierney
Toomey
Turner (OH)
Turner (TX)
Udall (CO)
Udall (NM)
Upton
Van Hollen
Vitter
Walden (OR)
Walsh
Wamp
Weldon (FL)
Weldon (PA)
Weller
Wicker
Wilson (NM)
Wilson (SC)
Wu
NOES--121
Abercrombie
Ackerman
Aderholt
Allen
Andrews
Baca
Baker
Baldwin
Becerra
Bell
Berkley
Bishop (GA)
Bishop (NY)
Boehner
Bonilla
Boucher
Brady (PA)
Brown (OH)
Brown, Corrine
Cardin
Clay
Clyburn
Conyers
Crowley
Cummings
Davis (AL)
Davis (IL)
DeGette
DeLauro
Dicks
Dingell
Doggett
Edwards
Emanuel
Engel
Etheridge
Evans
Everett
Farr
Fattah
Filner
Frank (MA)
Gonzalez
Grijalva
Gutierrez
Hinchey
Hinojosa
Holt
Honda
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson, E. B.
Kaptur
Kildee
Kilpatrick
Kucinich
LaHood
Larson (CT)
LaTourette
Lee
Lewis (CA)
Lewis (GA)
Lowey
Markey
Matsui
McCarthy (MO)
McCollum
McGovern
McHugh
Menendez
Millender-McDonald
Moran (VA)
Murtha
Nadler
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Payne
Pelosi
Porter
Quinn
Radanovich
Rahall
Rangel
Reyes
Rodriguez
Rogers (KY)
Roybal-Allard
Ruppersberger
Rush
Sabo
Sanchez, Linda T.
Sanders
Saxton
Schakowsky
Serrano
Simpson
Slaughter
Solis
Stark
Strickland
Thompson (MS)
Towns
Velazquez
Visclosky
Waters
Watson
Waxman
Weiner
Wexler
Whitfield
Wolf
Woolsey
Wynn
Young (AK)
Young (FL)
NOT VOTING--23
Barton (TX)
Bereuter
Berman
Carson (IN)
Collins
Davis, Tom
Deutsch
Doyle
Fossella
Gephardt
Goss
Granger
Hastings (FL)
Hastings (WA)
Jones (OH)
Kanjorski
Kleczka
McDermott
Meeks (NY)
Mollohan
Rothman
Tauzin
Watt
Announcement by the Chairman Pro Tempore
The CHAIRMAN pro tempore (Mr. Bass) (during the vote). Two minutes
remain in this vote.
{time} 2133
Mr. SAXTON and Mr. SERRANO changed their vote from ``aye'' to ``no.''
Mrs. NAPOLITANO and Messrs. STUPAK, RYAN of Ohio, CUNNINGHAM, MILLER
of North Carolina, PRICE of North Carolina, INSLEE, ROSS, TIAHRT,
TIERNEY, GEORGE MILLER of California, KINGSTON, PETRI and DeFAZIO
changed their vote from ``no'' to ``aye.''
So the amendment was agreed to.
The result of the vote was announced as above recorded.
Amendment No. 7 Offered by Mr. Ryan of Wisconsin
The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on the amendment offered by the gentleman from Wisconsin
(Mr. Ryan) on which further proceedings were postponed and on which the
ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 97,
noes 312, not voting 24, as follows:
[Roll No. 311]
AYES--97
Akin
Baker
Ballenger
Barrett (SC)
Bartlett (MD)
Beauprez
Biggert
Bilirakis
Blackburn
Boehlert
Boehner
Brady (TX)
Brown-Waite, Ginny
Burgess
Burns
Camp
Cardin
Carter
Case
Castle
Chabot
Chocola
Coble
Cole
Crane
Cubin
Davis (FL)
DeMint
Diaz-Balart, M.
Doggett
Duncan
English
Feeney
Flake
Franks (AZ)
Garrett (NJ)
Gibbons
Gillmor
Gingrey
Green (WI)
Greenwood
Gutknecht
Harris
Hart
Hayworth
Hensarling
Herger
Hoekstra
Hostettler
Hulshof
Isakson
Johnson, Sam
Jones (NC)
Keller
Kennedy (MN)
King (IA)
Kirk
Kline
Langevin
Linder
Lucas (KY)
Manzullo
Matheson
McInnis
Miller (FL)
Moore
Musgrave
Myrick
Neugebauer
Nussle
Otter
Paul
Pence
Peterson (MN)
Portman
Ramstad
Rohrabacher
Royce
Ryan (WI)
Ryun (KS)
Schrock
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Souder
Stearns
Stenholm
Tancredo
Terry
Thornberry
Toomey
Upton
Vitter
Walden (OR)
Wilson (SC)
NOES--312
Abercrombie
Ackerman
Aderholt
Alexander
Allen
Andrews
Baca
Bachus
Baird
Baldwin
Bass
Becerra
Bell
Berkley
Berry
Bishop (GA)
Bishop (NY)
Bishop (UT)
Blumenauer
Blunt
Bonilla
Bonner
Bono
Boozman
Boswell
Boucher
Boyd
Bradley (NH)
Brady (PA)
Brown (OH)
Brown (SC)
Brown, Corrine
Burr
Burton (IN)
Buyer
Calvert
Cannon
Cantor
Capito
Capps
Capuano
Cardoza
Carson (OK)
Chandler
Clay
Clyburn
Conyers
Cooper
Costello
Cramer
Crenshaw
Crowley
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (IL)
Davis (TN)
Davis, Jo Ann
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
DeLay
Diaz-Balart, L.
Dicks
Dingell
Dooley (CA)
Doolittle
Dreier
Dunn
Edwards
Ehlers
Emanuel
Emerson
Engel
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Ferguson
Filner
Foley
Forbes
Ford
Frank (MA)
Frelinghuysen
Frost
Gallegly
Gerlach
Gilchrest
Gonzalez
Goode
Goodlatte
Gordon
Graves
Green (TX)
Grijalva
Gutierrez
Hall
Harman
Hayes
Hefley
Herseth
Hill
Hinchey
Hinojosa
Hobson
Hoeffel
Holden
Holt
Honda
Hooley (OR)
Houghton
Hoyer
Hunter
Hyde
Inslee
Israel
Issa
Istook
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Jenkins
John
Johnson (CT)
Johnson (IL)
Johnson, E. B.
Kaptur
Kelly
Kennedy (RI)
Kildee
Kilpatrick
Kind
King (NY)
Kingston
Knollenberg
Kolbe
Kucinich
LaHood
Lampson
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Lipinski
LoBiondo
Lofgren
Lowey
Lucas (OK)
Lynch
Majette
Maloney
Markey
Marshall
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McCotter
McCrery
McGovern
McHugh
McIntyre
McKeon
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Mica
Michaud
Millender-McDonald
Miller (MI)
Miller (NC)
Miller, Gary
Miller, George
Moran (KS)
Moran (VA)
Murphy
Murtha
Nadler
Napolitano
Neal (MA)
Nethercutt
Ney
Northup
Norwood
Nunes
Oberstar
Obey
Olver
Ortiz
Osborne
Ose
Owens
Oxley
Pallone
Pascrell
Pastor
Payne
Pearce
Pelosi
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Pomeroy
Porter
[[Page H5013]]
Price (NC)
Pryce (OH)
Putnam
Quinn
Radanovich
Rahall
Rangel
Regula
Rehberg
Renzi
Reyes
Reynolds
Rodriguez
Rogers (AL)
Rogers (KY)
Rogers (MI)
Ros-Lehtinen
Ross
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Sandlin
Saxton
Schiff
Scott (GA)
Scott (VA)
Serrano
Shaw
Sherman
Sherwood
Shuster
Simmons
Simpson
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Spratt
Stark
Strickland
Stupak
Sullivan
Sweeney
Tanner
Tauscher
Taylor (MS)
Taylor (NC)
Thomas
Thompson (CA)
Thompson (MS)
Tiahrt
Tiberi
Tierney
Towns
Turner (OH)
Turner (TX)
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walsh
Wamp
Waters
Watson
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Weller
Wexler
Whitfield
Wicker
Wilson (NM)
Wolf
Woolsey
Wu
Wynn
Young (AK)
Young (FL)
NOT VOTING--24
Barton (TX)
Bereuter
Berman
Carson (IN)
Collins
Cox
Davis, Tom
Deutsch
Doyle
Fossella
Gephardt
Goss
Granger
Hastings (FL)
Hastings (WA)
Jones (OH)
Kanjorski
Kleczka
McDermott
Mollohan
Rothman
Schakowsky
Tauzin
Watt
Announcement by the Chairman Pro Tempore
The CHAIRMAN pro tempore (during the vote). Two minutes remain in
this vote.
{time} 2141
Mr. Petri changed his vote from ``aye'' to ``no.''
So the amendment was rejected.
The result of the vote was announced as above recorded.
Amendment No. 8 Offered by Mr. Ryan of Wisconsin
The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on the amendment offered by the gentleman from Wisconsin
(Mr. Ryan) on which further proceedings were postponed and on which the
ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 137,
noes 272, not voting 24, as follows:
[Roll No. 312]
AYES--137
Akin
Ballenger
Barrett (SC)
Bartlett (MD)
Bass
Beauprez
Biggert
Bishop (UT)
Blackburn
Boehlert
Boehner
Boswell
Bradley (NH)
Brady (TX)
Brown-Waite, Ginny
Burgess
Burns
Burr
Camp
Cannon
Capito
Carson (OK)
Carter
Case
Castle
Chabot
Chocola
Coble
Cole
Crane
Cubin
Davis (FL)
Davis (TN)
Deal (GA)
DeMint
Diaz-Balart, L.
Diaz-Balart, M.
Doggett
Duncan
Dunn
Feeney
Ferguson
Flake
Foley
Forbes
Franks (AZ)
Gallegly
Garrett (NJ)
Gibbons
Gillmor
Gingrey
Goode
Goodlatte
Green (WI)
Greenwood
Gutknecht
Hall
Harman
Harris
Hart
Hayworth
Hefley
Hensarling
Herger
Herseth
Hill
Hoekstra
Hostettler
Hulshof
Isakson
John
Johnson (IL)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
King (IA)
Kline
Langevin
Linder
LoBiondo
Lucas (KY)
Manzullo
Matheson
McCrery
McInnis
McIntyre
McKeon
Miller (FL)
Miller, Gary
Moran (KS)
Murphy
Musgrave
Myrick
Neugebauer
Norwood
Ose
Otter
Oxley
Paul
Pence
Peterson (MN)
Pitts
Putnam
Radanovich
Ramstad
Renzi
Reynolds
Rohrabacher
Ros-Lehtinen
Royce
Ryan (WI)
Ryun (KS)
Schrock
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Smith (MI)
Smith (TX)
Smith (WA)
Souder
Stearns
Stenholm
Tancredo
Tanner
Terry
Thornberry
Toomey
Turner (TX)
Upton
Vitter
Walden (OR)
Wilson (NM)
Wilson (SC)
NOES--272
Abercrombie
Ackerman
Aderholt
Alexander
Allen
Andrews
Baca
Bachus
Baird
Baker
Baldwin
Becerra
Bell
Berkley
Berry
Bilirakis
Bishop (GA)
Bishop (NY)
Blumenauer
Blunt
Bonilla
Bonner
Bono
Boozman
Boucher
Boyd
Brady (PA)
Brown (OH)
Brown (SC)
Brown, Corrine
Burton (IN)
Buyer
Calvert
Cantor
Capps
Capuano
Cardin
Cardoza
Chandler
Clay
Clyburn
Conyers
Cooper
Costello
Cramer
Crenshaw
Crowley
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Jo Ann
DeFazio
DeGette
Delahunt
DeLauro
DeLay
Dicks
Dingell
Dooley (CA)
Doolittle
Dreier
Edwards
Ehlers
Emanuel
Emerson
Engel
English
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Filner
Ford
Frank (MA)
Frelinghuysen
Frost
Gerlach
Gilchrest
Gonzalez
Gordon
Graves
Green (TX)
Grijalva
Gutierrez
Hayes
Hinchey
Hinojosa
Hobson
Hoeffel
Holden
Holt
Honda
Hooley (OR)
Houghton
Hoyer
Hunter
Hyde
Inslee
Israel
Issa
Istook
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Jenkins
Johnson (CT)
Johnson, E. B.
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
Kind
King (NY)
Kingston
Kirk
Knollenberg
Kolbe
Kucinich
LaHood
Lampson
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (GA)
Lewis (KY)
Lipinski
Lofgren
Lowey
Lucas (OK)
Lynch
Majette
Maloney
Markey
Marshall
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McCotter
McGovern
McHugh
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Mica
Michaud
Millender-McDonald
Miller (MI)
Miller (NC)
Miller, George
Moore
Moran (VA)
Murtha
Nadler
Napolitano
Neal (MA)
Nethercutt
Ney
Northup
Nunes
Nussle
Oberstar
Obey
Olver
Ortiz
Osborne
Owens
Pallone
Pascrell
Pastor
Payne
Pearce
Pelosi
Peterson (PA)
Petri
Pickering
Platts
Pombo
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Quinn
Rahall
Rangel
Regula
Rehberg
Reyes
Rodriguez
Rogers (AL)
Rogers (KY)
Rogers (MI)
Ross
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Sandlin
Saxton
Schakowsky
Schiff
Scott (GA)
Scott (VA)
Serrano
Shaw
Sherman
Sherwood
Shuster
Simmons
Simpson
Skelton
Slaughter
Smith (NJ)
Snyder
Solis
Spratt
Stark
Strickland
Stupak
Sullivan
Sweeney
Tauscher
Taylor (MS)
Taylor (NC)
Thomas
Thompson (CA)
Thompson (MS)
Tiahrt
Tiberi
Tierney
Towns
Turner (OH)
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walsh
Wamp
Waters
Watson
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Weller
Wexler
Whitfield
Wicker
Wolf
Woolsey
Wu
Wynn
Young (AK)
Young (FL)
NOT VOTING--24
Barton (TX)
Bereuter
Berman
Carson (IN)
Collins
Cox
Davis, Tom
Deutsch
Doyle
Fossella
Gephardt
Goss
Granger
Hastings (FL)
Hastings (WA)
Jones (OH)
Kanjorski
Kleczka
Lewis (CA)
McDermott
Mollohan
Rothman
Tauzin
Watt
Announcement by the Chairman Pro Tempore
The CHAIRMAN pro tempore (Mr. Bass) (during the vote). Members are
advised there are 2 minutes remaining in this vote.
{time} 2148
So the amendment was rejected.
The result of the vote was announced as above recorded.
Amendment No. 9 Offered by Mr. Ryan of Wisconsin
The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on the amendment offered by the gentleman from Wisconsin
(Mr. Ryan) on which further proceedings were postponed and on which the
ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 174,
noes 237, not voting 22, as follows:
[Roll No. 313]
AYES--174
Akin
Alexander
Andrews
Ballenger
Barrett (SC)
Bartlett (MD)
Bass
Beauprez
Biggert
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehlert
Boehner
Bonner
Boozman
Boswell
Boyd
Bradley (NH)
Brady (TX)
Brown-Waite, Ginny
Burns
Burr
Camp
Cannon
Cantor
Capito
Cardin
Cardoza
Case
Castle
Chabot
Chocola
Coble
Cole
Cooper
Cox
[[Page H5014]]
Crane
Cubin
Davis (FL)
Davis (TN)
Deal (GA)
DeFazio
DeMint
Diaz-Balart, L.
Diaz-Balart, M.
Doggett
Dooley (CA)
Duncan
Dunn
Ehlers
English
Etheridge
Feeney
Ferguson
Flake
Foley
Forbes
Franks (AZ)
Frost
Gallegly
Garrett (NJ)
Gibbons
Gilchrest
Gillmor
Gingrey
Goode
Goodlatte
Gordon
Green (WI)
Greenwood
Gutknecht
Harman
Harris
Hart
Hayworth
Hefley
Hensarling
Herger
Herseth
Hoeffel
Hoekstra
Hooley (OR)
Hostettler
Hoyer
Hulshof
Isakson
Issa
John
Johnson (CT)
Johnson, E. B.
Keller
Kelly
Kennedy (MN)
Kind
King (IA)
Kirk
Kline
Lampson
Langevin
Linder
LoBiondo
Lofgren
Lucas (KY)
Majette
Manzullo
Marshall
Matheson
McCrery
McInnis
McIntyre
McKeon
Miller (FL)
Miller, Gary
Moran (KS)
Murphy
Musgrave
Myrick
Neugebauer
Norwood
Nunes
Nussle
Osborne
Ose
Otter
Pence
Peterson (MN)
Petri
Pitts
Platts
Pombo
Porter
Portman
Price (NC)
Pryce (OH)
Putnam
Radanovich
Ramstad
Rehberg
Rohrabacher
Ros-Lehtinen
Royce
Ruppersberger
Ryan (WI)
Ryun (KS)
Sandlin
Schrock
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Smith (MI)
Smith (TX)
Smith (WA)
Snyder
Spratt
Stearns
Stenholm
Tanner
Taylor (MS)
Terry
Thornberry
Toomey
Turner (OH)
Turner (TX)
Udall (CO)
Udall (NM)
Upton
Vitter
Walden (OR)
Wilson (NM)
Wilson (SC)
NOES--237
Abercrombie
Ackerman
Aderholt
Allen
Baca
Bachus
Baird
Baker
Baldwin
Becerra
Bell
Berkley
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Bonilla
Bono
Boucher
Brady (PA)
Brown (OH)
Brown (SC)
Brown, Corrine
Burgess
Burton (IN)
Buyer
Calvert
Capps
Capuano
Carson (OK)
Carter
Chandler
Clay
Clyburn
Conyers
Costello
Cramer
Crenshaw
Crowley
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Jo Ann
DeGette
Delahunt
DeLauro
DeLay
Dicks
Dingell
Doolittle
Doyle
Dreier
Edwards
Emanuel
Emerson
Engel
Eshoo
Evans
Everett
Farr
Fattah
Filner
Ford
Frank (MA)
Frelinghuysen
Gerlach
Gonzalez
Graves
Green (TX)
Grijalva
Gutierrez
Hall
Hayes
Hill
Hinchey
Hinojosa
Hobson
Holden
Holt
Honda
Houghton
Hunter
Hyde
Inslee
Israel
Istook
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Jenkins
Johnson (IL)
Johnson, Sam
Jones (NC)
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
King (NY)
Kingston
Knollenberg
Kolbe
Kucinich
LaHood
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Lipinski
Lowey
Lucas (OK)
Lynch
Maloney
Markey
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McCotter
McGovern
McHugh
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Mica
Michaud
Millender-McDonald
Miller (MI)
Miller (NC)
Miller, George
Moore
Moran (VA)
Murtha
Nadler
Napolitano
Neal (MA)
Nethercutt
Ney
Northup
Oberstar
Obey
Olver
Ortiz
Owens
Oxley
Pallone
Pascrell
Pastor
Paul
Payne
Pearce
Pelosi
Peterson (PA)
Pickering
Pomeroy
Quinn
Rahall
Regula
Renzi
Reyes
Reynolds
Rodriguez
Rogers (AL)
Rogers (KY)
Rogers (MI)
Ross
Roybal-Allard
Rush
Ryan (OH)
Sabo
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Saxton
Schakowsky
Scott (GA)
Scott (VA)
Serrano
Shaw
Sherman
Sherwood
Shuster
Simmons
Simpson
Skelton
Slaughter
Smith (NJ)
Solis
Souder
Stark
Strickland
Stupak
Sullivan
Sweeney
Tancredo
Tauscher
Taylor (NC)
Thomas
Thompson (CA)
Thompson (MS)
Tiahrt
Tiberi
Tierney
Towns
Van Hollen
Velazquez
Visclosky
Walsh
Wamp
Waters
Watson
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Weller
Wexler
Whitfield
Wicker
Wolf
Woolsey
Wu
Wynn
Young (AK)
Young (FL)
NOT VOTING--22
Barton (TX)
Bereuter
Berman
Carson (IN)
Collins
Davis, Tom
Deutsch
Fossella
Gephardt
Goss
Granger
Hastings (FL)
Hastings (WA)
Jones (OH)
Kleczka
McDermott
Mollohan
Rangel
Rothman
Schiff
Tauzin
Watt
Announcement by the Chairman Pro Tempore
The CHAIRMAN pro tempore (during the vote). Members are advised there
are 2 minutes remaining in this vote.
{time} 2155
So the amendment was rejected.
The result of the vote was announced as above recorded.
Amendment No. 15 in the Nature of a Substitute Offered by Mr. Spratt
The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on the amendment in the nature of a substitute offered by
the gentleman from South Carolina (Mr. Spratt) on which further
proceedings were postponed and on which the noes prevailed by voice
vote.
The Clerk will redesignate the amendment in the nature of a
substitute.
The Clerk redesignated the amendment in the nature of a substitute.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 179,
noes 233, not voting 21, as follows:
[Roll No. 314]
AYES--179
Abercrombie
Ackerman
Allen
Andrews
Baca
Baird
Baldwin
Becerra
Bell
Berkley
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Boucher
Brady (PA)
Brown (OH)
Brown, Corrine
Capps
Capuano
Cardin
Cardoza
Case
Chandler
Clay
Clyburn
Conyers
Cooper
Costello
Crowley
Cummings
Davis (AL)
Davis (CA)
Davis (FL)
Davis (IL)
Davis (TN)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Dooley (CA)
Doyle
Edwards
Emanuel
Engel
Eshoo
Etheridge
Evans
Farr
Fattah
Filner
Ford
Frank (MA)
Frost
Gonzalez
Gordon
Green (TX)
Grijalva
Gutierrez
Harman
Herseth
Hinchey
Hinojosa
Hoeffel
Holden
Holt
Honda
Hooley (OR)
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson, E. B.
Jones (NC)
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
Kind
Kucinich
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Leach
Lee
Levin
Lewis (GA)
Lofgren
Lowey
Lynch
Majette
Maloney
Markey
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McGovern
McIntyre
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Michaud
Millender-McDonald
Miller (NC)
Miller, George
Moore
Moran (VA)
Nadler
Napolitano
Neal (MA)
Oberstar
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Pomeroy
Price (NC)
Rangel
Reyes
Rodriguez
Ross
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Sa1nchez, Linda T.
Sanchez, Loretta
Sanders
Sandlin
Schakowsky
Schiff
Scott (GA)
Scott (VA)
Serrano
Sherman
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Spratt
Stark
Strickland
Stupak
Tauscher
Thompson (MS)
Tierney
Towns
Turner (TX)
Udall (CO)
Udall (NM)
Van Hollen
Vela1zquez
Visclosky
Waters
Watson
Waxman
Weiner
Wexler
Wilson (NM)
Woolsey
Wu
Wynn
NOES--233
Aderholt
Akin
Alexander
Bachus
Baker
Ballenger
Barrett (SC)
Bartlett (MD)
Bass
Beauprez
Berry
Biggert
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehlert
Boehner
Bonilla
Bonner
Bono
Boozman
Boyd
Bradley (NH)
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burns
Burr
Burton (IN)
Buyer
Calvert
Camp
Cantor
Capito
Carson (OK)
Carter
Castle
Chabot
Chocola
Coble
Cole
Cox
Cramer
Crane
Crenshaw
Cubin
Culberson
Cunningham
Davis, Jo Ann
Deal (GA)
DeLay
DeMint
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Dreier
Duncan
Dunn
Ehlers
Emerson
English
Everett
Feeney
Ferguson
Flake
Foley
Forbes
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gibbons
Gilchrest
Gillmor
Gingrey
Goode
Goodlatte
Goss
Graves
Green (WI)
Greenwood
Gutknecht
Hall
Harris
Hart
Hayes
Hayworth
Hefley
Hensarling
Herger
Hill
Hobson
Hoekstra
Hostettler
Houghton
Hulshof
Hunter
Hyde
Isakson
Issa
Istook
Jenkins
John
Johnson (CT)
Johnson (IL)
Johnson, Sam
Keller
Kelly
Kennedy (MN)
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kolbe
LaHood
Latham
LaTourette
Lewis (CA)
Lewis (KY)
Linder
Lipinski
LoBiondo
Lucas (KY)
Lucas (OK)
Manzullo
Marshall
Matheson
McCotter
McCrery
McHugh
McInnis
McKeon
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy
[[Page H5015]]
Murtha
Musgrave
Myrick
Nethercutt
Neugebauer
Ney
Northup
Norwood
Nunes
Nussle
Obey
Osborne
Ose
Otter
Oxley
Paul
Pearce
Pence
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Porter
Portman
Pryce (OH)
Putnam
Quinn
Radanovich
Rahall
Ramstad
Regula
Rehberg
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Royce
Ryan (WI)
Ryun (KS)
Saxton
Schrock
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherwood
Shimkus
Shuster
Simmons
Simpson
Smith (MI)
Smith (NJ)
Smith (TX)
Souder
Stearns
Stenholm
Sweeney
Tancredo
Tanner
Taylor (MS)
Taylor (NC)
Terry
Thomas
Thompson (CA)
Thornberry
Tiahrt
Tiberi
Toomey
Turner (OH)
Upton
Vitter
Walden (OR)
Walsh
Wamp
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (SC)
Wolf
Young (AK)
Young (FL)
NOT VOTING--21
Barton (TX)
Bereuter
Berman
Cannon
Carson (IN)
Collins
Davis, Tom
Deutsch
Fossella
Gephardt
Granger
Hastings (FL)
Hastings (WA)
Jones (OH)
Kleczka
McDermott
Mollohan
Rothman
Sullivan
Tauzin
Watt
announcement by the chairman pro tempore
The CHAIRMAN pro tempore (Mr. Bass) (during the vote). Members are
advised 2 minutes remain in this vote.
{time} 2202
So the amendment in the nature of a substitute was rejected.
The result of the vote was announced as above recorded.
personal explanation
Mr. KLECZKA. Mr. Chairman, on rollcall Nos. 310, 311, 312, 313 and
314, had I been present, I would have voted ``no'' on 310, ``no'' on
311, ``no'' on 312, ``no'' on 313 and ``aye'' on rollcall 314.,
Amendment No. 16 in the Nature of a Substitute Offered by Mr.
Hensarling
Mr. HENSARLING. Mr. Chairman, I offer an amendment in the nature of a
substitute.
The CHAIRMAN pro tempore. The Clerk will designate the amendment in
the nature of a substitute.
The text of the amendment in the nature of a substitute is as
follows:
Amendment No. 16 in the nature of a substitute offered by
Mr. Hensarling:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Family
Budget Protection Act of 2004''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
TITLE I--A SIMPLE AND BINDING BUDGET
Subtitle A--Joint Budget Resolutions
Sec. 101. Declaration of purposes for the Budget Act.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered
Sec. 105. Amendments to effectuate joint resolutions on the budget.
Subtitle B--Budgeting for Emergencies
Sec. 111. Purpose.
Sec. 112. Repeal of adjustments for emergencies.
Sec. 113. OMB emergency criteria.
Sec. 114. Development of guidelines for application of emergency
definition.
Sec. 115. Reserve fund for emergencies in President's budget.
Sec. 116. Adjustments and reserve fund for emergencies in joint budget
resolutions.
Sec. 117. Application of section 306 to emergencies in excess of
amounts in reserve fund.
Sec. 118. Up-to-date tabulations.
Sec. 119. Prohibition on amendments to emergency reserve fund.
Subtitle C--Biennial Budget Option
Sec. 121. Effective date.
Sec. 122. Revision of timetable.
Sec. 123. Amendments to the Congressional Budget and Impoundment
Control Act of 1974.
Sec. 124. Amendments to Rules of House of Representatives.
Sec. 125. Amendments to title 31, United States Code.
Sec. 126. Two-year appropriations; title and style of appropriation
Acts.
Sec. 127. Multiyear authorizations.
Sec. 128. Government strategic and performance plans on a biennial
basis.
Sec. 129. Biennial appropriation bills.
Sec. 130. Assistance by Federal agencies to standing committees of the
Senate and the House of Representatives.
Subtitle D--Prevention of Government Shutdown
Sec. 141. Amendment to title 31.
Subtitle E--The Baseline
Sec. 151. Elimination of inflation adjustment.
Sec. 152. The President's budget.
Sec. 153. The congressional budget.
Sec. 154. Congressional Budget Office reports to committees.
Sec. 155. Treatment of emergencies.
TITLE II--PUTTING A LID ON THE FEDERAL BUDGET
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
Sec. 201. Spending caps on growth of entitlements and mandatories.
Sec. 202. Exempt programs and activities.
Sec. 203. Exceptions, limitations, and special rules.
Sec. 204. Point of order.
Sec. 205. Technical and conforming amendments.
Sec. 206. Establishment of Family Budget Protection Mandatory Account.
Subtitle B--Discretionary Spending Limits
Sec. 211. Enforcing discretionary spending limits.
Sec. 212. Establishment of Family Budget Protection Discretionary
Account.
Sec. 213. Revenue adjustment.
Subtitle C--Long-term Unfunded Obligations
Sec. 221. Long-term unfunded obligations.
Sec. 222. Points of order.
Sec. 223. Social security.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE.
Subtitle A--Sunsetting
Sec. 301. Reauthorization of discretionary programs and unearned
entitlements.
Sec. 302. Point of order.
Sec. 303. Decennial sunsetting.
Subtitle B--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
Sec. 311. Enhanced consideration of certain proposed rescissions.
Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse
Sec. 331. Establishment of Commission.
Sec. 332. Duties of the Commission.
Sec. 333. Powers of the Commission.
Sec. 334. Commission personnel matters.
Sec. 335. Termination of the Commission.
Sec. 336. Congressional consideration of reform proposals.
Sec. 337. Authorization of appropriations.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
Sec. 401. Civil Service Retirement System.
Sec. 402. Central Intelligence Agency Retirement and Disability System.
Sec. 403. Foreign Service Retirement and Disability System.
Sec. 404. Public Health Service Commissioned Corps Retirement System.
Sec. 405. National Oceanic and Atmospheric Administration Commissioned
Officer Corps Retirement System.
Sec. 406. Coast Guard Military Retirement System.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
Sec. 411. Federal employees health benefits fund.
Sec. 412. Funding uniformed services health benefits for all retirees.
Sec. 413. Effective date.
Subtitle C--Limit on the Public Debt
Sec. 421. Findings.
Sec. 422. Purpose.
Sec. 423. Limit on public debt.
Subtitle D--Risk-Assumed Budgeting
Sec. 431. Federal insurance programs.
TITLE V--MAINTAINING A COMMITMENT TO THE FAMILY BUDGET
Subtitle A--Further Enforcement Amendments
Sec. 501. Super-majority points of order in the House of
Representatives and the Senate.
Sec. 502. Budget resolution enforcement point of order.
Sec. 503. Point of order waiver protection.
Subtitle B--The Byrd Rule
Sec. 511. Limitation on Byrd Rule.
Subtitle C--Treatment of Extraneous Appropriations in Omnibus
Appropriation Measures
Sec. 521. Treatment of extraneous appropriations.
SEC. 2. EFFECTIVE DATE.
Except as otherwise specifically provided, this Act and the
amendments made by this Act shall become effective on the
date of enactment of this Act and shall apply with respect to
fiscal years beginning after September 30, 2004.
TITLE I--A SIMPLE AND BINDING BUDGET
Subtitle A--Joint Budget Resolutions
SEC. 101. DECLARATION OF PURPOSES FOR THE BUDGET ACT.
Paragraphs (1) and (2) of section 2 of the Congressional
Budget and Impoundment Control Act of 1974 are amended to
read as follows:
``(1) to assure effective control over the budgetary
process;
``(2) to facilitate the determination each year of the
appropriate level of Federal revenues and expenditures by the
Congress and the President;''.
[[Page H5016]]
SEC. 102. THE TIMETABLE.
Section 300 of the Congressional Budget Act of 1974 is
amended to read as follows:
``timetable
``Sec. 300. The timetable with respect to the congressional
budget process for any fiscal year is as follows:
Action to be completed:
President submits his budget...........................................
Congressional Budget Office submits report to Budget Committees........
Committees submit views and estimates to Budget Committees.............
Senate Budget Committee reports joint resolution on the budget.........
Congress completes action on joint resolution on the budget............
House Appropriations Committee reports last annual appropriation bill..
Congress completes action on reconciliation legislation................
House completes action on annual appropriation bills...................
Fiscal year begins.''..................................................
SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.
(a) Content of Annual Joint Resolutions on the Budget.--
Section 301(a)(4) of the Congressional Budget Act of 1974 is
amended to read as follows:
``(4) subtotals of new budget authority and outlays for
nondefense discretionary spending, defense discretionary
spending, direct spending (excluding interest), and interest;
and for emergencies (for the reserve fund in section 316(b)
and for military operations in section 316(c));''.
(b) Additional Matters in Joint Resolution.--Section 301(b)
of the Congressional Budget Act of 1974 is amended as
follows:
(1) Strike paragraphs (2), (4), and (6) through (9).
(2) After paragraph (3), insert ``and'' and redesignate
paragraph (5) as paragraph (4) and in such paragraph strike
the semicolon and insert a period.
(c) Required Contents of Report.--Section 301(e)(2) of the
Congressional Budget Act of 1974 is amended as follows:
(1) Redesignate subparagraphs (A), (B), (C), (D), (E), and
(F) as subparagraphs (B), (C), (E), (F), (H), and (I),
respectively.
(2) Before subparagraph (B) (as redesignated), insert the
following new subparagraph:
``(A) new budget authority and outlays for each major
functional category, based on allocations of the total levels
set forth pursuant to subsection (a)(1);''.
(3) In subparagraph (C) (as redesignated), strike
``mandatory'' and insert ``direct spending''.
(4) After subparagraph (C) (as redesignated), insert the
following new subparagraph:
``(D) a measure, as a percentage of gross domestic product,
of total outlays, total Federal revenues, the surplus or
deficit, and new outlays for nondefense discretionary
spending, defense spending, and direct spending as set forth
in such resolution;''.
(5) After subparagraph (F) (as redesignated), insert the
following new subparagraph:
``(G) if the joint resolution on the budget includes any
allocation to a committee other than the Committee on
Appropriations of levels in excess of current law levels, a
justification for not subjecting any program, project, or
activity (for which the allocation is made) to annual
discretionary appropriations;''.
(d) Additional Contents of Report.--Section 301(e)(3) of
the Congressional Budget Act of 1974 is amended as follows:
(1) Redesignate subparagraphs (A) and (B) as subparagraphs
(B) and (C), respectively, strike subparagraphs (C) and (D),
and redesignate subparagraph (E) as subparagraph (D).
(2) Before subparagraph (B), insert the following new
subparagraph:
``(A) reconciliation directives described in section
310;''.
(e) President's Budget Submission to the Congress.--(1) The
first two sentences of section 1105(a) of title 31, United
States Code, are amended to read as follows:
``On or after the first Monday in January but not later than
the first Monday in February of each year the President shall
submit a budget of the United States Government for the
following fiscal year which shall set forth the following
levels:
``(A) totals of new budget authority and outlays;
``(B) total Federal revenues and the amount, if any, by
which the aggregate level of Federal revenues should be
increased or decreased by bills and resolutions to be
reported by the appropriate committees;
``(C) the surplus or deficit in the budget;
``(D) subtotals of new budget authority and outlays for
nondefense discretionary spending, defense discretionary
spending, direct spending (excluding interest), and interest,
and for emergencies (for the reserve fund in section 316(b)
and for military operations in section 316(c)); and
``(E) the public debt.
Each budget submission shall include a budget message and
summary and supporting information and, as a separately
delineated statement, the levels required in the preceding
sentence for at least each of the 9 ensuing fiscal years.''.
(2) The third sentence of section 1105(a) of title 31,
United States Code, is amended by inserting ``submission''
after ``budget''.
(f) Limitation on Contents of Budget Resolutions.--Section
305 of the Congressional Budget Act of 1974 is amended by
adding at the end the following new subsection:
``(e) Limitation on Contents.--(1) It shall not be in order
in the House of Representatives or in the Senate to consider
any joint resolution on the budget or any amendment thereto
or conference report thereon that contains any matter
referred to in paragraph (2).
``(2) Any joint resolution on the budget or any amendment
thereto or conference report thereon that contains any matter
not permitted in section 301(a) or (b) shall not be treated
in the House of Representatives or the Senate as a budget
resolution under subsection (a) or (b) or as a conference
report on a budget resolution under subsection (c) of this
section.''.
SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE
CONSIDERED
(a) Amendments to Section 302.--Section 302(a) of the
Congressional Budget Act of 1974 is amended by striking
paragraph (5).
(b) Amendments to Section 303 and Conforming Amendments.--
(1) Section 303 of the Congressional Budget Act of 1974 is
amended by striking ``(a) In General.--'', by striking ``as
reported to the House or Senate'', by striking ``to become
effective'' in paragraph (1), and by striking subsections (b)
and (c); and
(2) by striking its section heading and inserting the
following new section heading: ``consideration of budget-
related legislation before budget becomes law''.
(c) Additional Amendments.--(1) Section 302(g)(1) of the
Congressional Budget Act of 1974 is amended by striking
``and, after April 15, section 303''.
(2)(A) Section 904(c)(1) of the Congressional Budget Act of
1974 is amended by inserting ``303,'' before ``305(b)(2),''.
(B) Section 904(d)(2) of the Congressional Budget Act of
1974 is amended by inserting ``303,'' before ``305(b)(2),''.
(d) Expedited Procedures Upon Veto of Joint Resolution on
the Budget.--(1) Title III of the Congressional Budget Act of
1974 (as amended by section 116) is further amended by adding
after section 316 the following new section:
``expedited procedures upon veto of joint resolution on the budget
``Sec. 317. (a) Special Rule.--If the President vetoes a
joint resolution on the budget for a fiscal year, the
majority leader of the House of Representatives or Senate (or
his designee) may introduce a concurrent resolution on the
budget or joint resolution on the budget for such fiscal
year. If the Committee on the Budget of either House fails to
report such concurrent or joint resolution referred to it
within five calendar days (excluding Saturdays, Sundays, or
legal holidays except when that House of Congress is in
session) after the date of such referral, the committee shall
be automatically discharged from further consideration of
such resolution and such resolution shall be placed on the
appropriate calendar.
``(b) Procedure in the House of Representatives and the
Senate.--
``(1) Except as provided in paragraph (2), the provisions
of section 305 for the consideration in the House of
Representatives and in the Senate of joint resolutions on the
budget and conference reports thereon shall also apply to the
consideration of concurrent resolutions on the budget
introduced under subsection (a) and conference reports
thereon.
``(2) Debate in the Senate on any concurrent resolution on
the budget or joint resolution on the budget introduced under
subsection (a), and all amendments thereto and debatable
motions and appeals in connection therewith, shall be limited
to not more than 10 hours and in the House such debate shall
be limited to not more than 3 hours.
``(c) Contents of Concurrent Resolutions.--Any concurrent
resolution on the budget introduced under subsection (a)
shall be in compliance with section 301.
``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a
concurrent resolution on the budget described in subsection
(a) is agreed to, then the aggregates, allocations, and
reconciliation directives (if any) contained in the report
accompanying such concurrent resolution or in such concurrent
resolution shall be considered to be the aggregates,
allocations, and reconciliation directives for all purposes
of sections 302, 303, and 311 for the applicable fiscal years
and such concurrent resolution shall be deemed to be a joint
resolution for all purposes of this title and the Rules of
the House of Representatives and any reference to the date of
enactment of a joint resolution on the budget shall be deemed
to be a reference to the date agreed to when applied to such
concurrent resolution.''.
(2) 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 316
the following new item:
``Sec. 317. Expedited procedures upon veto of joint resolution on the
budget.''.
SEC. 105. AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE
BUDGET.
(a) Definition.--Paragraph (4) of section 3 of the
Congressional Budget Act of 1974 is amended to read as
follows:
[[Page H5017]]
``(4) the term `joint resolution on the budget' means--
``(A) a joint resolution setting forth the budget for the
United States Government for a fiscal year as provided in
section 301; and
``(B) any other joint resolution revising the budget for
the United States Government for a fiscal year as described
in section 304.''.
(b) Additional Amendments to the Congressional Budget and
Impoundment Control Act of 1974.--(1)(A) Sections 301, 302,
303, 305, 308, 310, 311, 312, 314, 405, and 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.) are
amended by striking ``concurrent'' each place it appears and
inserting ``joint''.
(B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1)
of the Congressional Budget Act of 1974 are amended by
striking ``most recently agreed to concurrent resolution on
the budget'' each place it occurs and inserting ``most
recently enacted joint resolution on the budget or agreed to
concurrent resolution on the budget (as applicable)''.
(ii) The section heading of section 301 is amended by
striking ``adoption of concurrent resolution'' and inserting
``joint resolutions''; and
(iii) Section 304 of such Act is amended to read as
follows:
``permissible revisions of budget resolutions
``Sec. 304. At any time after the joint resolution on the
budget for a fiscal year has been enacted pursuant to section
301, and before the end of such fiscal year, the two Houses
and the President may enact a joint resolution on the budget
which revises or reaffirms the joint resolution on the budget
for such fiscal year most recently enacted.''.
(C) Sections 302, 303, 310, and 311, of such Act are
amended by striking ``agreed to'' each place it appears and
by inserting ``enacted''.
(2)(A) Paragraph (4) of section 3 of the Congressional
Budget and Impoundment Control Act of 1974 is amended by
striking ``concurrent'' each place it appears and by
inserting ``joint''.
(B) The table of contents set forth in section 1(b) of such
Act is amended--
(i) in the item relating to section 301, by striking
``adoption of concurrent resolution'' and inserting ``joint
resolutions'';
(ii) by striking the item relating to section 303 and
inserting the following:
``Sec. 303. Consideration of budget-related legislation before budget
becomes law.'';
(iii) by striking ``concurrent'' and inserting ``joint'' in
the item relating to section 305.
(c) Conforming Amendments to the Rules of the House of
Representatives.--Clauses 1(e)(1), 4(a)(4), 4(b)(2),
4(f)(1)(A), and 4(f)(2) of rule X, clause 10 of rule XVIII,
and clause 10 of rule XX of the Rules of the House of
Representatives are amended by striking ``concurrent'' each
place it appears and inserting ``joint''.
(d) Conforming Amendments to the Balanced Budget and
Emergency Deficit Control Act of 1985.--Section 258C(b)(1) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 907d(b)(1)) is amended by striking ``concurrent''
and inserting ``joint''.
(e) Conforming Amendments to Section 310 Regarding
Reconciliation Directives.--(1) The side heading of section
310(a) of the Congressional Budget Act of 1974 (as amended by
section 105(b)) is further amended by inserting ``Joint
Explanatory Statement Accompanying Conference Report on''
before ``Joint''.
(2) Section 310(a) of such Act is amended by striking ``A''
and inserting ``The joint explanatory statement accompanying
the conference report on a''.
(3) The first sentence of section 310(b) of such Act is
amended by striking ``If'' and inserting ``If the joint
explanatory statement accompanying the conference report
on''.
(4) Section 310(c)(1) of such Act is amended by inserting
``the joint explanatory statement accompanying the conference
report on'' after ``pursuant to''.
(f) Conforming Amendments to Section 3 Regarding Direct
Spending.--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 term `direct spending' has the meaning given to
such term in section 250(c)(8) of the Balanced Budget and
Emergency Deficit Control Act of 1985.''.
Subtitle B--Budgeting for Emergencies
SEC. 111. PURPOSE.
The purposes of this subtitle are to--
(1) develop budgetary and fiscal procedures for
emergencies;
(2) subject spending for emergencies to budgetary
procedures and controls; and
(3) establish criteria for determining compliance with
emergency requirements.
SEC. 112. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.
(a) Elimination of Emergency Designation.--Sections
251(b)(2)(A), 252(e), and 252(d)(4)(B) of the Balanced Budget
and Emergency Deficit Control Act of 1985 are repealed.
(b) Elimination of Emergency Adjustments.--Section 314(b)
of the Congressional Budget Act of 1974 is amended by
striking paragraph (1) and by redesignating paragraphs (2)
through (5) as paragraphs (1) through (4), respectively.
(c) Conforming Amendment.--Clause 2 of rule XXI of the
Rules of the House of Representatives is amended by repealing
paragraph (e) and by redesignating paragraph (f) as paragraph
(e).
SEC. 113. OMB EMERGENCY CRITERIA.
Definition of Emergency.--Section 3 of the Congressional
Budget and Impoundment Control Act of 1974 (as amended by
section 105(e)) is further amended by adding at the end the
following new paragraph:
``(12)(A) The term `emergency' means a situation that--
``(i) 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
``(ii) is unanticipated.
``(B) As used in subparagraph (A), the term `unanticipated'
means that the situation is--
``(i) sudden, which means quickly coming into being or not
building up over time;
``(ii) urgent, which means a pressing and compelling need
requiring immediate action;
``(iii) unforeseen, which means not predicted or
anticipated as an emerging need; and
``(iv) temporary, which means not of a permanent
duration.''.
(b) Conforming Amendment.--The term `emergency' has the
meaning given to such term in section 3 of the Congressional
Budget and Impoundment Control Act of 1974.''.
SEC. 114. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF
EMERGENCY DEFINITION.
Not later than 5 months after the date of enactment of this
Act, the chairmen of the Committees on the Budget (in
consultation with the President) shall, after consulting with
the chairmen of the Committees on Appropriations and
applicable authorizing committees of their respective Houses
and the Directors of the Congressional Budget Office and the
Office of Management and Budget, jointly publish in the
Congressional Record guidelines for application of the
definition of emergency set forth in section 3(12) of the
Congressional Budget and Impoundment Control Act of 1974.
SEC. 115. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.
Section 1105(f) of title 31, United States Code is amended
by adding at the end the following new sentences: ``Such
budget submission shall also comply with the requirements of
subsections (b) and (c) of section 316 of the Congressional
Budget Act of 1974 and, in the case of any budget authority
requested for an emergency, such submission shall include a
detailed justification of why such emergency is an emergency
within the meaning of section 3(12) of the Congressional
Budget Act of 1974.''.
SEC. 116. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN
JOINT BUDGET RESOLUTIONS.
(a) Emergencies.--Title III of the Congressional Budget Act
of 1974 is amended by adding at the end the following new
section:
``emergencies
``Sec. 316. (a) Adjustments.--
``(1) In general.--After the reporting of a bill or joint
resolution or the submission of a conference report thereon
that provides budget authority for any emergency as
identified pursuant to subsection (d) that is not covered by
subsection (c)--
``(A) the chairman of the Committee on the Budget of the
House of Representatives or the Senate shall determine and
certify, pursuant to the guidelines referred to in section
114 of the Family Budget Protection Act of 2004, the portion
(if any) of the amount so specified that is for an emergency
within the meaning of section 3(12); and
``(B) such chairman shall make the adjustment set forth in
paragraph (2) for the amount of new budget authority (or
outlays) in that measure and the outlays flowing from that
budget authority.
``(2) Matters to be adjusted.--The adjustments referred to
in paragraph (1) are to be made to the allocations made
pursuant to the appropriate joint resolution on the budget
pursuant to section 302(a) and shall be in an amount not to
exceed the amount reserved for emergencies pursuant to the
requirements of subsection (b).
``(b) Reserve Fund for Nonmilitary Emergencies.--The amount
set forth in the reserve fund for emergencies for budget
authority and outlays for a fiscal year pursuant to section
301(a)(4) shall equal--
``(1) the average of the enacted levels of budget authority
for emergencies (other than those covered by subsection (c))
in the 5 fiscal years preceding the current year; and
``(2) the average of the levels of outlays for emergencies
in the 5 fiscal years preceding the current year flowing from
the budget authority referred to in paragraph (1), but only
in the fiscal year for which such budget authority first
becomes available for obligation.
``(c) Treatment of Emergencies to Fund Certain Military
Operations.--Whenever the Committee on Appropriations reports
any bill or joint resolution that provides budget authority
for any emergency that is a threat to national security and
the funding of which carries out a military operation
authorized by a declaration of war or a joint resolution
authorizing the use of military force (or economic assistance
funding in furtherance of such operation) and the report
accompanying that bill or joint resolution, pursuant to
subsection (d), identifies any provision that increases
outlays or provides budget authority (and the outlays flowing
therefrom) for such emergency, the enactment of which would
cause the total amount
[[Page H5018]]
of budget authority or outlays provided for emergencies for
the budget year in the joint resolution on the budget
(pursuant to section 301(a)(4)) to be exceeded:
``(A) Such bill or joint resolution shall be referred to
the Committee on the Budget of the House or the Senate, as
the case may be, with instructions to report it without
amendment, other than that specified in subparagraph (B),
within 5 legislative days of the day in which it is reported
from the originating committee. If the Committee on the
Budget of either House fails to report a bill or joint
resolution referred to it under this subparagraph within such
5-day period, the committee shall be automatically discharged
from further consideration of such bill or joint resolution
and such bill or joint resolution shall be placed on the
appropriate calendar.
``(B) An amendment to such a bill or joint resolution
referred to in this subsection shall only consist of an
exemption from section 251 of the Balanced Budget and
Emergency Deficit Control Act of 1985 of all or any part of
the provisions that provide budget authority (and the outlays
flowing therefrom) for such emergency if the committee
determines, pursuant to the guidelines referred to in section
114 of the Family Budget Protection Act of 2004, that such
budget authority is for an emergency within the meaning of
section 3(12).
``(C) If such a bill or joint resolution is reported with
an amendment specified in subparagraph (B) by the Committee
on the Budget of the House of Representatives or the Senate,
then the budget authority and resulting outlays that are the
subject of such amendment shall not be included in any
determinations under section 302(f) or 311(a) for any bill,
joint resolution, amendment, motion, or conference report.
``(d) Committee Notification of Emergency Legislation.--
Whenever the Committee on Appropriations or any other
committee of either House (including a committee of
conference) reports any bill or joint resolution that
provides budget authority for any emergency, the report
accompanying that bill or joint resolution (or the joint
explanatory statement of managers in the case of a conference
report on any such bill or joint resolution) shall identify
all provisions that provide budget authority and the outlays
flowing therefrom for such emergency and include a statement
of the reasons why such budget authority meets the definition
of an emergency pursuant to the guidelines referred to in
section 114 of the Family Budget Protection Act of 2004.''.
(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 315 the following new item:
``Sec. 316. Emergencies.''.
SEC. 117. APPLICATION OF SECTION 306 TO EMERGENCIES IN EXCESS
OF AMOUNTS IN RESERVE FUND.
Section 306 of the Congressional Budget Act of 1974 is
amended by inserting at the end the following new sentence:
``No amendment reported by the Committee on the Budget (or
from the consideration of which such committee has been
discharged) pursuant to section 316(c) may be amended.''.
SEC. 118. UP-TO-DATE TABULATIONS.
Section 308(b)(2) of the Congressional Budget Act of 1974
is amended by striking ``and'' at the end of subparagraph
(B), by striking the period at the end of subparagraph (C)
and inserting ``; and'', and by adding at the end the
following new subparagraph:
``(D) shall include an up-to-date tabulation of amounts
remaining in the reserve fund for emergencies.''.
SEC. 119. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE
FUND.
(a) Point of Order.--Section 305 of the Congressional
Budget Act of 1974 (as amended by section 103(f)) is further
amended by adding at the end the following new subsection:
``(f) Point of Order Regarding Emergency Reserve Fund.--It
shall not be in order in the House of Representatives or in
the Senate to consider an amendment to a joint resolution on
the budget which changes the amount of budget authority and
outlays set forth in section 301(a)(4) for emergency reserve
fund.''.
(b) Technical Amendment.--(1) Section 904(c)(1) of the
Congressional Budget Act of 1974 is amended by inserting
``305(e), 305(f),'' after ``305(c)(4),''.
(2) Section 904(d)(2) of the Congressional Budget Act of
1974 is amended by inserting ``305(e), 305(f),'' after
``305(c)(4),''.
Subtitle C--Biennial Budget Option
SEC. 121. EFFECTIVE DATE.
If--
(1) as part of the President's budget submission under
section 1105(a) of title 31, United States Code, during the
first session of any Congress, the President includes a
request that the joint resolution on the budget that will be
considered during the first session of the next Congress be
for a biennium consisting of two consecutive fiscal years;
and
(2) the joint resolution on the budget for the fiscal year
to which the President's submission relates contains a
provision stating that the joint resolution on the budget
that will be considered during the first session of the next
Congress shall be for a biennium consisting of two
consecutive fiscal years;
then the provisions of this subtitle shall take effect on
January 1 of the calendar year in which that next Congress
commences and apply to that Congress and each Congress
thereafter.
SEC. 122. REVISION OF TIMETABLE.
Section 300 of the Congressional Budget Act of 1974 (2
U.S.C. 631) is amended to read as follows:
``timetable
``Sec. 300. (a) In General.--Except as provided by
subsection (b), the timetable with respect to the
congressional budget process for any Congress (beginning with
the One Hundred Tenth Congress or a subsequent Congress, as
applicable) is as follows:
``First Session
``On or before: Action to be completed:
First Monday in February..................... President submits budget
recommendations.
February 15.................................. Congressional Budget
Office submits report to
Budget Committees.
Not later than 6 weeks after budget Committees submit views
submission. and estimates to Budget
Committees.
April 1...................................... Budget Committees report
joint resolution on the
biennial budget.
May 15....................................... Congress completes action
on joint resolution on
the biennial budget.
May 15....................................... Biennial appropriation
bills may be considered
in the House.
June 10...................................... House Appropriations
Committee reports last
biennial appropriation
bill.
June 30...................................... House completes action on
biennial appropriation
bills.
October 1.................................... Biennium begins.
``Second Session
``On or before: Action to be completed:
February 15.................................. President submits budget
review.
Not later than 6 weeks after President Congressional Budget
submits budget review. Office submits report to
Budget Committees.
The last day of the session.................. Congress completes action
on bills and resolutions
authorizing new budget
authority for the
succeeding biennium.
``(b) Special Rule.--In the case of any first session of
Congress that begins in any year during which the term of a
President (except a President who succeeds himself) begins,
the following dates shall supersede those set forth in
subsection (a):
``First Session
``On or before: Action to be completed:
First Monday in April........................ President submits budget
recommendations.
April 20..................................... Committees submit views
and estimates to Budget
Committees.
May 15....................................... Budget Committees report
joint resolution on the
biennial budget.
June 1....................................... Congress completes action
on joint resolution on
the biennial budget.
June 1....................................... Biennial appropriation
bills may be considered
in the House.
July 1....................................... House Appropriations
Committee reports last
biennial appropriation
bill.
July 20...................................... House completes action on
biennial appropriation
bills.
October 1.................................... Biennium begins.''.
SEC. 123. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND
IMPOUNDMENT CONTROL ACT OF 1974.
(a) Declaration of Purpose.--Section 2(2) of the
Congressional Budget and Impoundment Control Act of 1974 (2
U.S.C. 621(2)) is amended by striking ``each year'' and
inserting ``biennially''.
(b) Definitions.--
(1) Budget resolution.--Section 3(4) of such Act (2 U.S.C.
622(4)) is amended by striking ``fiscal year'' each place it
appears and inserting ``biennium''.
(2) Biennium.--Section 3 of such Act (2 U.S.C. 622) (as
amended by section 111(a)) is further amended by adding at
the end the following new paragraph:
``(13) The term `biennium' means the period of 2
consecutive fiscal years beginning on October 1 of any odd-
numbered year.''.
(c) Biennial Joint Resolution on the Budget.--
(1) Contents of resolution.--Section 301(a) of such Act (2
U.S.C. 632(a)) is amended--
(A) in the matter preceding paragraph (1) by--
(i) striking ``April 15 of each year'' and inserting ``May
15 of each odd-numbered year'';
(ii) striking ``the fiscal year beginning on October 1 of
such year'' the first place it appears and inserting ``the
biennium beginning on October 1 of such year'';
(iii) striking ``the fiscal year beginning on October 1 of
such year'' the second place it appears and inserting ``each
fiscal year in such period''; and
(iv) striking ``each of the four ensuing fiscal years'' and
inserting ``each fiscal year in the next 2 bienniums'';
(B) in paragraph (6), by striking ``for the fiscal year''
and inserting ``for each fiscal year in the biennium''; and
(C) in paragraph (7), by striking ``for the fiscal year''
and inserting ``for each fiscal year in the biennium''.
(2) Additional matters.--Section 301(b) of such Act (2
U.S.C. 632(b)) is amended--
[[Page H5019]]
(A) in paragraph (3), by striking ``for such fiscal year''
and inserting ``for either fiscal year in such biennium'';
and
(B) in paragraph (7), by striking ``for the first fiscal
year'' and inserting ``for each fiscal year in the
biennium''.
(3) Views of other committees.--Section 301(d) of such Act
(2 U.S.C. 632(d)) is amended by inserting ``(or, if
applicable, as provided by section 300(b))'' after ``United
States Code''.
(4) Hearings.--Section 301(e)(1) of such Act (2 U.S.C.
632(e)) is amended by--
(A) striking ``fiscal year'' and inserting ``biennium'';
and
(B) inserting after the second sentence the following: ``On
or before April 1 of each odd-numbered year (or, if
applicable, as provided by section 300(b)), the Committee on
the Budget of each House shall report to its House the joint
resolution on the budget referred to in subsection (a) for
the biennium beginning on October 1 of that year.''.
(5) Goals for reducing unemployment.--Section 301(f) of
such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal
year'' each place it appears and inserting ``biennium''.
(6) Economic assumptions.--Section 301(g)(1) of such Act (2
U.S.C. 632(g)(1)) is amended by striking ``for a fiscal
year'' and inserting ``for a biennium''.
(7) Section heading.--The section heading of section 301 of
such Act is amended by striking ``ANNUAL'' and inserting
``BIENNIAL''.
(8) Table of contents.--The item relating to section 301 in
the table of contents set forth in section 1(b) of such Act
is amended by striking ``Annual'' and inserting ``Biennial''.
(d) Committee Allocations.--Section 302 of such Act (2
U.S.C. 633) is amended--
(1) in subsection (a)(1) by--
(A) striking ``for the first fiscal year of the
resolution,'' and inserting ``for each fiscal year in the
biennium,'';
(B) striking ``for that period of fiscal years'' and
inserting ``for all fiscal years covered by the resolution'';
and
(C) striking ``for the fiscal year of that resolution'' and
inserting ``for each fiscal year in the biennium'';
(2) in subsection (f)(1), by striking ``for a fiscal year''
and inserting ``for a biennium'';
(3) in subsection (f)(1), by striking ``first fiscal year''
and inserting ``either fiscal year of the biennium'';
(4) in subsection (f)(2)(A), by--
(A) striking ``first fiscal year'' and inserting ``each
fiscal year of the biennium''; and
(B) striking ``the total of fiscal years'' and inserting
``the total of all fiscal years covered by the resolution'';
and
(5) in subsection (g)(1)(A), by striking ``April'' and
inserting ``May''.
(e) Section 303 Point of Order.--Section 303 of such Act (2
U.S.C. 634(a)) is amended by striking ``for a fiscal year''
and inserting ``for a biennium'' and by striking ``the first
fiscal year'' and inserting ``each fiscal year of the
biennium''.
(f) Permissible Revisions of Joint Resolutions on the
Budget.--Section 304 of such Act (2 U.S.C. 635) is amended--
(1) by striking ``fiscal year'' the first two places it
appears and inserting ``biennium'';
(2) by striking ``for such fiscal year''; and
(3) by inserting before the period ``for such biennium''.
(g) Procedures for Consideration of Budget Resolutions.--
Section 305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended
by striking ``fiscal year'' and inserting ``biennium''.
(h) Completion of House Committee Action on Appropriation
Bills.--Section 307 of such Act (2 U.S.C. 638) is amended--
(1) by striking ``each year'' and inserting ``each odd-
numbered year (or, if applicable, as provided by section
300(b), July 1)'';
(2) by striking ``annual'' and inserting ``biennial'';
(3) by striking ``fiscal year'' and inserting ``biennium'';
and
(4) by striking ``that year'' and inserting ``each odd-
numbered year''.
(i) Quarterly Budget Reports.--Section 308 of such Act (2
U.S.C. 639) is amended by adding at the end the following new
subsection:
``(d) Quarterly Budget Reports.--The Director of the
Congressional Budget Office shall, as soon as practicable
after the completion of each quarter of the fiscal year,
prepare an analysis comparing revenues, spending, and the
deficit or surplus for the current fiscal year to assumptions
included in the congressional budget resolution. In preparing
this report, the Director of the Congressional Budget Office
shall combine actual budget figures to date with projected
revenue and spending for the balance of the fiscal year. The
Director of the Congressional Budget Office shall include any
other information in this report that it deems useful for a
full understanding of the current fiscal position of the
Government. The reports mandated by this subsection shall be
transmitted by the Director to the Senate and House
Committees on the Budget, and the Congressional Budget Office
shall make such reports available to any interested party
upon request.''.
(j) Completion of House Action on Regular Appropriation
Bills.--Section 309 of such Act (2 U.S.C. 640) is amended--
(1) by striking ``It'' and inserting ``Except whenever
section 300(b) is applicable, it'';
(2) by inserting ``of any odd-numbered calendar year''
after ``July'';
(3) by striking ``annual'' and inserting ``biennial''; and
(4) by striking ``fiscal year'' and inserting ``biennium''.
(k) Reconciliation Process.--Section 310 of such Act (2
U.S.C. 641) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ``any fiscal year'' and inserting ``any
biennium'';
(2) in subsection (a)(1), by striking ``such fiscal year''
each place it appears and inserting ``any fiscal year covered
by such resolution''; and
(3) by striking subsection (f) and redesignating subsection
(g) as subsection (f).
(l) Section 311 Point of Order.--
(1) In the house.--Section 311(a)(1) of such Act (2 U.S.C.
642(a)) is amended--
(A) by striking ``for a fiscal year'' and inserting ``for a
biennium'';
(B) by striking ``the first fiscal year'' each place it
appears and inserting ``either fiscal year of the biennium'';
and
(C) by striking ``that first fiscal year'' and inserting
``each fiscal year in the biennium''.
(2) In the senate.--Section 311(a)(2) of such Act is
amended--
(A) in subparagraph (A), by striking ``for the first fiscal
year'' and inserting ``for either fiscal year of the
biennium''; and
(B) in subparagraph (B)--
(i) by striking ``that first fiscal year'' the first place
it appears and inserting ``each fiscal year in the
biennium''; and
(ii) by striking ``that first fiscal year and the ensuing
fiscal years'' and inserting ``all fiscal years''.
(3) Social security levels.--Section 311(a)(3) of such Act
is amended by--
(A) striking ``for the first fiscal year'' and inserting
``each fiscal year in the biennium''; and
(B) striking ``that fiscal year and the ensuing fiscal
years'' and inserting ``all fiscal years''.
(m) Maximum Deficit Amount Point of Order.--Section 312(c)
of the Congressional Budget Act of 1974 (2 U.S.C. 643) is
amended--
(1) by striking ``for a fiscal year'' and inserting ``for a
biennium'';
(2) in paragraph (1), by striking ``first fiscal year'' and
inserting ``either fiscal year in the biennium'';
(3) in paragraph (2), by striking ``that fiscal year'' and
inserting ``either fiscal year in the biennium''; and
(4) in the matter following paragraph (2), by striking
``that fiscal year'' and inserting ``the applicable fiscal
year''.
SEC. 124. AMENDMENTS TO RULES OF HOUSE OF REPRESENTATIVES.
(a) Clause 4(a)(1)(A) of rule X of the Rules of the House
of Representatives is amended by inserting ``odd-numbered''
after ``each''.
(b) Clause 4(a)(4) of rule X of the Rules of the House of
Representatives is amended by striking ``fiscal year'' and
inserting ``biennium''.
(c) Clause 4(b)(2) of rule X of the Rules of the House of
Representatives is amended by striking ``each fiscal year''
and inserting ``the biennium''.
(d) Clause 4(b) of rule X of the Rules of the House of
Representatives is amended by striking ``and'' at the end of
subparagraph (5), by striking the period and inserting ``;
and'' at the end of subparagraph (6), and by adding at the
end the following new subparagraph:
``(7) use the second session of each Congress to study
issues with long-term budgetary and economic implications,
which would include--
``(A) hold hearings to receive testimony from committees of
jurisdiction to identify problem areas and to report on the
results of oversight; and
``(B) by January 1 of each odd-number year, issuing a
report to the Speaker which identifies the key issues facing
the Congress in the next biennium.''.
(e) Clause 4(e) of rule X of the Rules of the House of
Representatives is amended by striking ``annually'' each
place it appears and inserting ``biennially'' and by striking
``annual'' and inserting ``biennial''.
(f) Clause 4(f) of rule X of the Rules of the House of
Representatives is amended--
(1) by inserting ``during each odd-numbered year'' after
``submits his budget'';
(2) by striking ``fiscal year'' the first place it appears
and inserting ``biennium''; and
(3) by striking ``that fiscal year'' and inserting ``each
fiscal year in such ensuing biennium''.
(g) Clause 11(i) of rule X of the Rules of the House of
Representatives is amended by striking ``during the same or
preceding fiscal year''.
(h) Clause 3(d)(2)(A) of rule XIII of the Rules of the
House of Representatives is amended by striking ``five'' both
places it appears and inserting ``six''.
(i) Clause 5(a)(1) of rule XIII of the Rules of the House
of Representatives is amended by striking ``fiscal year after
September 15 in the preceding fiscal year'' and inserting
``biennium after September 15 of the calendar year in which
such biennium begins''.
SEC. 125. AMENDMENTS TO TITLE 31, UNITED STATES CODE.
(a) Definition.--Section 1101 of title 31, United States
Code, is amended by adding at the end the following new
paragraph:
``(3) `biennium' has the meaning given to such term in
paragraph (13) of section 3 of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 622(13)).''.
(b) Budget Contents and Submission to the Congress.--
(1) Schedule.--The matter preceding paragraph (1) in
section 1105(a) of title 31, United States Code, is amended
to read as follows:
[[Page H5020]]
``(a) On or before the first Monday in February of each
odd-numbered year (or, if applicable, as provided by section
300(b) of the Congressional Budget Act of 1974), beginning
with the One Hundred Tenth Congress or a subsequent Congress
(as applicable), the President shall submit to the Congress
the budget for the biennium beginning on October 1 of such
calendar year. The budget transmitted under this subsection
shall include a budget message and summary and supporting
information. The President shall include in each budget the
following:''.
(2) Expenditures.--Section 1105(a)(5) of title 31, United
States Code, is amended by striking ``the fiscal year for
which the budget is submitted and the 4 fiscal years after
that year'' and inserting ``each fiscal year in the biennium
for which the budget is submitted and in the succeeding 4
years''.
(3) Receipts.--Section 1105(a)(6) of title 31, United
States Code, is amended by striking ``the fiscal year for
which the budget is submitted and the 4 fiscal years after
that year'' and inserting ``each fiscal year in the biennium
for which the budget is submitted and in the succeeding 4
years''.
(4) Balance statements.--Section 1105(a)(9)(C) of title 31,
United States Code, is amended by striking ``the fiscal
year'' and inserting ``each fiscal year in the biennium''.
(5) Government functions and activities.--Section
1105(a)(12) of title 31, United States Code, is amended in
subparagraph (A), by striking ``the fiscal year'' and
inserting ``each fiscal year in the biennium''.
(6) Allowances.--Section 1105(a)(13) of title 31, United
States Code, is amended by striking ``the fiscal year'' and
inserting ``each fiscal year in the biennium''.
(7) Allowances for unanticipated and uncontrollable
expenditures.--Section 1105(a)(14) of title 31, United States
Code, is amended by striking ``that year'' and inserting
``each fiscal year in the biennium for which the budget is
submitted''.
(8) Tax expenditures.--Section 1105(a)(16) of title 31,
United States Code, is amended by striking ``the fiscal
year'' and inserting ``each fiscal year in the biennium''.
(9) Estimates for future years.--Section 1105(a)(17) of
title 31, United States Code, is amended--
(A) by striking ``the fiscal year following the fiscal
year'' and inserting ``each fiscal year in the biennium
following the biennium'';
(B) by striking ``that following fiscal year'' and
inserting ``each such fiscal year''; and
(C) by striking ``fiscal year before the fiscal year'' and
inserting ``biennium before the biennium''.
(10) Prior year outlays.--Section 1105(a)(18) of title 31,
United States Code, is amended--
(A) by striking ``the prior fiscal year,'' and inserting
``each of the 2 most recently completed fiscal years,'';
(B) by striking ``for that year'' and inserting ``with
respect to those fiscal years''; and
(C) by striking ``in that year'' and inserting ``in those
fiscal years''.
(11) Prior year receipts.--Section 1105(a)(19) of title 31,
United States Code, is amended--
(A) by striking ``the prior fiscal year'' and inserting
``each of the 2 most recently completed fiscal years'';
(B) by striking ``for that year'' and inserting ``with
respect to those fiscal years''; and
(C) by striking ``in that year'' each place it appears and
inserting ``in those fiscal years''.
(c) Estimated Expenditures of Legislative and Judicial
Branches.--Section 1105(b) of title 31, United States Code,
is amended by striking ``each year'' and inserting ``each
even-numbered year''.
(d) Recommendations To Meet Estimated Deficiencies.--
Section 1105(c) of title 31, United States Code, is amended--
(1) by striking ``the fiscal year for'' the first place it
appears and inserting ``each fiscal year in the biennium
for'';
(2) by striking ``the fiscal year for'' the second place it
appears and inserting ``each fiscal year of the biennium, as
the case may be,''; and
(3) by striking ``that year'' and inserting ``for each year
of the biennium''.
(e) Capital Investment Analysis.--Section 1105(e)(1) of
title 31, United States Code, is amended by striking
``ensuing fiscal year'' and inserting ``biennium to which
such budget relates''.
(f) Supplemental Budget Estimates and Changes.--
(1) In general.--Section 1106(a) of title 31, United States
Code, is amended--
(A) in the matter preceding paragraph (1), by--
(i) inserting ``and before February 15 of each even-
numbered year'' after ``Before July 16 of each year''; and
(ii) striking ``fiscal year'' and inserting ``biennium'';
(B) in paragraph (1), by striking ``that fiscal year'' and
inserting ``each fiscal year in such biennium'';
(C) in paragraph (2), by striking ``4 fiscal years
following the fiscal year'' and inserting ``4 fiscal years
following the biennium''; and
(D) in paragraph (3), by striking ``fiscal year'' and
inserting ``biennium''.
(2) Changes.--Section 1106(b) of title 31, United States
Code, is amended by--
(A) striking ``the fiscal year'' and inserting ``each
fiscal year in the biennium''; and
(B) inserting ``and before February 15 of each even-
numbered year'' after ``Before July 16 of each year''.
(g) Current Programs and Activities Estimates.--
(1) The president.--Section 1109(a) of title 31, United
States Code, is amended--
(A) by striking ``On or before the first Monday after
January 3 of each year (on or before February 5 in 1986)''
and inserting ``At the same time the budget required by
section 1105 is submitted for a biennium''; and
(B) by striking ``the following fiscal year'' and inserting
``each fiscal year of such period''.
(2) Joint economic committee.--Section 1109(b) of title 31,
United States Code, is amended by striking ``March 1 of each
year'' and inserting ``within 6 weeks of the President's
budget submission for each odd-numbered year (or, if
applicable, as provided by section 300(b) of the
Congressional Budget Act of 1974)''.
(h) Year-Ahead Requests for Authorizing Legislation.--
Section 1110 of title 31, United States Code, is amended by--
(1) striking ``May 16'' and inserting ``March 31''; and
(2) striking ``year before the year in which the fiscal
year begins'' and inserting ``calendar year preceding the
calendar year in which the biennium begins''.
SEC. 126. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF
APPROPRIATION ACTS.
Section 105 of title 1, United States Code, is amended to
read as follows:
``Sec. 105. Title and style of appropriations Acts
``(a) The style and title of all Acts making appropriations
for the support of the Government shall be as follows: `An
Act making appropriations (here insert the object) for each
fiscal year in the biennium of fiscal years (here insert the
fiscal years of the biennium).'.
``(b) All Acts making regular appropriations for the
support of the Government shall be enacted for a biennium and
shall specify the amount of appropriations provided for each
fiscal year in such period.
``(c) For purposes of this section, the term `biennium' has
the same meaning as in section 3(13) of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C.
622(13)).''.
SEC. 127. MULTIYEAR AUTHORIZATIONS.
(a) In General.--Title III of the Congressional Budget Act
of 1974 (as amended by section 116(a)) is further amended by
adding at the end the following new section:
``multiyear authorizations of appropriations
``Sec. 318. (a) It shall not be in order in the House of
Representatives or the Senate to consider any measure that
contains a specific authorization of appropriations for any
purpose unless the measure includes such a specific
authorization of appropriations for that purpose for not less
than each fiscal year in one or more bienniums.
``(b)(1) For purposes of this section, a specific
authorization of appropriations is an authorization for the
enactment of an amount of appropriations or amounts not to
exceed an amount of appropriations (whether stated as a sum
certain, as a limit, or as such sums as may be necessary) for
any purpose for a fiscal year.
``(2) Subsection (a) does not apply with respect to an
authorization of appropriations for a single fiscal year for
any program, project, or activity if the measure containing
that authorization includes a provision expressly stating the
following: `Congress finds that no authorization of
appropriation will be required for [Insert name of applicable
program, project, or activity] for any subsequent fiscal
year.'.
``(c) For purposes of this section, the term `measure'
means a bill, joint resolution, amendment, motion, or
conference report.''.
(b) Amendment to Table of Contents.--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 317 the following new item:
``Sec. 318. Multiyear authorizations of appropriations.''.
SEC. 128. GOVERNMENT STRATEGIC AND PERFORMANCE PLANS ON A
BIENNIAL BASIS.
(a) Strategic Plans.--Section 306 of title 5, United States
Code, is amended--
(1) in subsection (a), by striking ``September 30, 1997''
and inserting ``September 30, 2007'';
(2) in subsection (b)--
(A) by striking ``at least every three years'' and all that
follows thereafter and inserting ``at least every 4 years,
except that strategic plans submitted by September 30, 2007,
shall be updated and revised by September 30, 2010''; and
(B) by striking ``five years forward'' and inserting ``six
years forward''; and
(3) in subsection (c), by inserting a comma after
``section'' the second place it appears and adding
``including a strategic plan submitted by September 30, 2007,
meeting the requirements of subsection (a)''.
(b) Budget Contents and Submission to Congress.--Paragraph
(28) of section 1105(a) of title 31, United States Code, is
amended by striking ``beginning with fiscal year 1999, a''
and inserting ``beginning with fiscal year 2010, a
biennial''.
(c) Performance Plans.--Section 1115 of title 31, United
States Code, is amended--
(1) in subsection (a)--
(A) in the matter before paragraph (1)--
(i) by striking ``section 1105(a)(29)'' and inserting
``section 1105(a)(28)''; and
(ii) by striking ``an annual'' and inserting ``a
biennial'';
[[Page H5021]]
(B) in paragraph (1) by inserting after ``program
activity'' the following: ``for both years 1 and 2 of the
biennial plan'';
(C) in paragraph (5) by striking ``and'' after the
semicolon;
(D) in paragraph (6) by striking the period and inserting a
semicolon; and inserting ``and'' after the inserted
semicolon; and
(E) by adding after paragraph (6) the following:
``(7) cover each fiscal year of the biennium beginning with
the first fiscal year of the next biennial budget cycle.'';
(2) in subsection (d) by striking ``annual'' and inserting
``biennial''; and
(3) in paragraph (6) of subsection (f) by striking
``annual'' and inserting ``biennial''.
(d) Managerial Accountability and Flexibility.--Section
9703 of title 31, United States Code, relating to managerial
accountability, is amended--
(1) in subsection (a)--
(A) in the first sentence by striking ``annual''; and
(B) by striking ``section 1105(a)(29)'' and inserting
``section 1105(a)(28)'';
(2) in subsection (e)--
(A) in the first sentence by striking ``one or'' before
``two years'';
(B) in the second sentence by striking ``a subsequent
year'' and inserting ``for a subsequent 2-year period''; and
(C) in the third sentence by striking ``three'' and
inserting ``four''.
(e) Strategic Plans.--Section 2802 of title 39, United
States Code, is amended--
(1) in subsection (a), by striking ``September 30, 1997''
and inserting ``September 30, 2007'';
(2) in subsection (b), by striking ``at least every three
years'' and inserting ``at least every 4 years except that
strategic plans submitted by September 30, 2007, shall be
updated and revised by September 30, 2010'';
(3) in subsection (b), by striking ``five years forward''
and inserting ``six years forward''; and
(4) in subsection (c), by inserting a comma after
``section'' the second place it appears and inserting
``including a strategic plan submitted by September 30, 2007,
meeting the requirements of subsection (a)''.
(f) Performance Plans.--Section 2803(a) of title 39, United
States Code, is amended--
(1) in the matter before paragraph (1), by striking ``an
annual'' and inserting ``a biennial'';
(2) in paragraph (1), by inserting after ``program
activity'' the following: ``for both years 1 and 2 of the
biennial plan'';
(3) in paragraph (5), by striking ``and'' after the
semicolon;
(4) in paragraph (6), by striking the period and inserting
``; and''; and
(5) by adding after paragraph (6) the following:
``(7) cover each fiscal year of the biennium beginning with
the first fiscal year of the next biennial budget cycle.''.
(g) Committee Views of Plans and Reports.--Section 301(d)
of the Congressional Budget Act (2 U.S.C. 632(d)) is amended
by adding at the end ``Each committee of the Senate or the
House of Representatives shall review the strategic plans,
performance plans, and performance reports, required under
section 306 of title 5, United States Code, and sections 1115
and 1116 of title 31, United States Code, of all agencies
under the jurisdiction of the committee. Each committee may
provide its views on such plans or reports to the Committee
on the Budget of the applicable House.''.
SEC. 129. BIENNIAL APPROPRIATION BILLS.
(a) In the House of Representatives.--Clause 2(a) of rule
XXI of the Rules of the House of Representatives is amended
by adding at the end the following new subparagraph:
``(3)(A) Except as provided by subdivision (B), an
appropriation may not be reported in a general appropriation
bill (other than a supplemental appropriation bill), and may
not be in order as an amendment thereto, unless it provides
new budget authority or establishes a level of obligations
under contract authority for each fiscal year of a biennium.
``(B) Subdivision (A) does not apply with respect to an
appropriation for a single fiscal year for any program,
project, or activity if the bill or amendment thereto
containing that appropriation includes a provision expressly
stating the following: `Congress finds that no additional
funding beyond one fiscal year will be required and the
[Insert name of applicable program, project, or activity]
will be completed or terminated after the amount provided has
been expended.'.
``(C) For purposes of paragraph (b), the statement set
forth in subdivision (B) with respect to an appropriation for
a single fiscal year for any program, project, or activity
may be included in a general appropriation bill or amendment
thereto.''.
(b) Conforming Amendment.--Clause 5(b)(1) of rule XXII of
the House of Representatives is amended by striking ``or
(c)'' and inserting ``or (3) or 2(c)''.
SEC. 130. ASSISTANCE BY FEDERAL AGENCIES TO STANDING
COMMITTEES OF THE SENATE AND THE HOUSE OF
REPRESENTATIVES.
(a) Information Regarding Agency Appropriations Requests.--
To assist each standing committee of the House of
Representatives and the Senate in carrying out its
responsibilities, the head of each Federal agency which
administers the laws or parts of laws under the jurisdiction
of such committee shall provide to such committee such
studies, information, analyses, reports, and assistance as
may be requested by the chairman and ranking minority member
of the committee.
(b) Information Regarding Agency Program Administration.--
To assist each standing committee of the House of
Representatives and the Senate in carrying out its
responsibilities, the head of any agency shall furnish to
such committee documentation, containing information
received, compiled, or maintained by the agency as part of
the operation or administration of a program, or specifically
compiled pursuant to a request in support of a review of a
program, as may be requested by the chairman and ranking
minority member of such committee.
(c) Summaries by Comptroller General.--Within thirty days
after the receipt of a request from a chairman and ranking
minority member of a standing committee having jurisdiction
over a program being reviewed and studied by such committee
under this section, the Comptroller General of the United
States shall furnish to such committee summaries of any
audits or reviews of such program which the Comptroller
General has completed during the preceding six years.
(d) Congressional Assistance.--Consistent with their duties
and functions under law, the Comptroller General of the
United States, the Director of the Congressional Budget
Office, and the Director of the Congressional Research
Service shall continue to furnish (consistent with
established protocols) to each standing committee of the
House of Representatives or the Senate such information,
studies, analyses, and reports as the chairman and ranking
minority member may request to assist the committee in
conducting reviews and studies of programs under this
section.
Subtitle D--Prevention of Government Shutdown
SEC. 141. AMENDMENT TO TITLE 31.
(a) In General.--Chapter 13 of title 31, United States
Code, is amended by inserting after section 1310 the
following new section:
``Sec. 1311. Continuing appropriations
``(a)(1) If any regular appropriation bill for a fiscal
year (or, if applicable, for each fiscal year in a biennium)
does not become law before the beginning of such fiscal year
or a joint resolution making continuing appropriations is not
in effect, there are appropriated, out of any money in the
Treasury not otherwise appropriated, and out of applicable
corporate or other revenues, receipts, and funds, such sums
as may be necessary to continue any project or activity for
which funds were provided in the preceding fiscal year--
``(A) in the corresponding regular appropriation Act for
such preceding fiscal year; or
``(B) if the corresponding regular appropriation bill for
such preceding fiscal year did not become law, then in a
joint resolution making continuing appropriations for such
preceding fiscal year.
``(2) Appropriations and funds made available, and
authority granted, for a project or activity for any fiscal
year pursuant to this section shall be at a rate of
operations not in excess of the lower of--
``(A) the rate of operations provided for in the regular
appropriation Act providing for such project or activity for
the preceding fiscal year;
``(B) in the absence of such an Act, the rate of operations
provided for such project or activity pursuant to a joint
resolution making continuing appropriations for such
preceding fiscal year;
``(C) the rate of operations provided for in the regular
appropriation bill as passed by the House of Representatives
or the Senate for the fiscal year in question, except that
the lower of these two versions shall be ignored for any
project or activity for which there is a budget request if no
funding is provided for that project or activity in either
version; or
``(D) the annualized rate of operations provided for in the
most recently enacted joint resolution making continuing
appropriations for part of that fiscal year or any funding
levels established under the provisions of this Act.
``(3) Appropriations and funds made available, and
authority granted, for any fiscal year pursuant to this
section for a project or activity shall be available for the
period beginning with the first day of a lapse in
appropriations and ending with the earlier of--
``(A) the date on which the applicable regular
appropriation bill for such fiscal year becomes law (whether
or not such law provides for such project or activity) or a
continuing resolution making appropriations becomes law, as
the case may be; or
``(B) the last day of such fiscal year.
``(b) An appropriation or funds made available, or
authority granted, for a project or activity for any fiscal
year pursuant to this section shall be subject to the terms
and conditions imposed with respect to the appropriation made
or funds made available for the preceding fiscal year, or
authority granted for such project or activity under current
law.
``(c) Appropriations and funds made available, and
authority granted, for any project or activity for any fiscal
year pursuant to this section shall cover all obligations or
expenditures incurred for such project or activity during the
portion of such fiscal year for which this section applies to
such project or activity.
[[Page H5022]]
``(d) Expenditures made for a project or activity for any
fiscal year pursuant to this section shall be charged to the
applicable appropriation, fund, or authorization whenever a
regular appropriation bill or a joint resolution making
continuing appropriations until the end of a fiscal year
providing for such project or activity for such period
becomes law.
``(e) This section shall not apply to a project or activity
during a fiscal year if any other provision of law (other
than an authorization of appropriations)--
``(1) makes an appropriation, makes funds available, or
grants authority for such project or activity to continue for
such period; or
``(2) specifically provides that no appropriation shall be
made, no funds shall be made available, or no authority shall
be granted for such project or activity to continue for such
period.
``(f) For purposes of this section, the term `regular
appropriation bill' means any annual appropriation bill
making appropriations, otherwise making funds available, or
granting authority, for any of the following categories of
projects and activities:
``(1) Agriculture, rural development, Food and Drug
Administration, and related agencies programs.
``(2) The Departments of Commerce, Justice, and State, the
Judiciary, and related agencies.
``(3) The Department of Defense.
``(4) The government of the District of Columbia and other
activities chargeable in whole or in part against the
revenues of the District.
``(5) Energy and water development.
``(6) Foreign operations, export financing, and related
programs.
``(7) The Department of Homeland Security.
``(8) The Department of the Interior and related agencies.
``(9) The Departments of Labor, Health and Human Services,
and Education, and related agencies.
``(10) The Legislative Branch.
``(11) Military construction, family housing, and base
realignment and closure for the Department of Defense.
``(12) The Departments of Transportation and Treasury, and
independent agencies.
``(13) The Departments of Veterans Affairs and Housing and
Urban Development, and sundry independent agencies, boards,
commissions, corporations, and offices.''.
(b) Clerical Amendment.--The analysis of chapter 13 of
title 31, United States Code, is amended by inserting after
the item relating to section 1310 the following new item:
``1311. Continuing appropriations.''.
Subtitle E--The Baseline
SEC. 151. ELIMINATION OF INFLATION ADJUSTMENT.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended--
(1) in paragraph (1) by striking ``for inflation as
specified in paragraph (5),''; and
(2) by striking paragraph (5) and redesignating paragraph
(6) as paragraph (5).
SEC. 152. THE PRESIDENT'S BUDGET.
(a) Paragraph (5) of section 1105(a) of title 31, United
States Code, is amended to read as follows:
``(5) except as provided in subsection (b) of this section,
estimated expenditures and appropriations for the current
year and estimated expenditures and proposed appropriations
the President decides are necessary to support the Government
in the fiscal year for which the budget is submitted and the
4 fiscal years following that year, and, except for detailed
budget estimates, the percentage change from the current year
to the fiscal year for which the budget is submitted for
estimated expenditures and for appropriations.''.
(b) Section 1105(a)(6) of title 31, United States Code, is
amended to read as follows:
``(6) estimated receipts of the Government in the current
year and the fiscal year for which the budget is submitted
and the 4 fiscal years after that year under--
``(A) laws in effect when the budget is submitted; and
``(B) proposals in the budget to increase revenues,
and the percentage change (in the case of each category
referred to in subparagraphs (A) and (B)) between the current
year and the fiscal year for which the budget is submitted
and between the current year and each of the 9 fiscal years
after the fiscal year for which the budget is submitted.''.
(c) Section 1105(a)(12) of title 31, United States Code, is
amended to read as follows:
``(12) for each proposal in the budget for legislation that
would establish or expand a Government activity or function,
a table showing--
``(A) the amount proposed in the budget for appropriation
and for expenditure because of the proposal in the fiscal
year for which the budget is submitted;
``(B) the estimated appropriation required because of the
proposal for each of the 4 fiscal years after that year that
the proposal will be in effect; and
``(C) the estimated amount for the same activity or
function, if any, in the current fiscal year,
and, except for detailed budget estimates, the percentage
change (in the case of each category referred to in
subparagraphs (A), (B), and (C)) between the current year and
the fiscal year for which the budget is submitted.''.
(d) Section 1105(a)(18) of title 31, United States Code, is
amended by inserting ``new budget authority and'' before
``budget outlays''.
(e) Section 1105(a) of title 31, United States Code, is
amended by adding at the end the following new paragraphs:
``(35) a comparison of levels of estimated expenditures and
proposed appropriations for each function and subfunction in
the current fiscal year and the fiscal year for which the
budget is submitted, along with the proposed increase or
decrease of spending in percentage terms for each function
and subfunction.
``(36) a table on sources of growth in total direct
spending under current law and as proposed in this budget
submission for the budget year and the ensuing 9 fiscal
years, which shall include changes in outlays attributable to
the following: cost-of-living adjustments; changes in the
number of program recipients; increases in medical care
prices, utilization and intensity of medical care; and
residual factors.''.
(f) Section 1109(a) of title 31, United States Code, is
amended by inserting after the first sentence the following
new sentence: ``For discretionary spending, these estimates
shall assume the levels set forth in the discretionary
spending limits under section 251(b) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as adjusted, for
the appropriate fiscal years (and if no such limits are in
effect, these estimates shall assume the adjusted levels for
the most recent fiscal year for which such levels were in
effect).''.
SEC. 153. THE CONGRESSIONAL BUDGET.
Section 301(e) of the Congressional Budget Act of 1974 (as
amended by section 103) is further amended--
(1) in paragraph (1), by inserting at the end the
following: ``The basis of deliberations in developing such
joint resolution shall be the estimated budgetary levels for
the preceding fiscal year. Any budgetary levels pending
before the committee and the text of the joint resolution
shall be accompanied by a document comparing such levels or
such text to the estimated levels of the prior fiscal year.
Any amendment offered in the committee that changes a
budgetary level and is based upon a specific policy
assumption for a program, project, or activity shall be
accompanied by a document indicating the estimated amount for
such program, project, or activity in the current year.'';
and
(2) in paragraph (2), by striking ``and'' at the end of
subparagraph (H) (as redesignated), by striking the period
and inserting ``; and'' at the end of subparagraph (I) (as
redesignated), and by adding at the end the following new
subparagraph:
``(J) a comparison of levels for the current fiscal year
with proposed spending and revenue levels for the subsequent
fiscal years along with the proposed increase or decrease of
spending in percentage terms for each function.''.
SEC. 154. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.
(a) The first sentence of section 202(e)(1) of the
Congressional Budget Act of 1974 is amended by inserting
``compared to comparable levels for the current year'' before
the comma at the end of subparagraph (A) and before the comma
at the end of subparagraph (B).
(b) Section 202(e)(1) of the Congressional Budget Act of
1974 is amended by inserting after the first sentence the
following new sentence: ``Such report shall also include a
table on sources of spending growth in total direct spending
for the budget year and the ensuing 4 fiscal years, which
shall include changes in outlays attributable to the
following: cost-of-living adjustments; changes in the number
of program recipients; increases in medical care prices,
utilization and intensity of medical care; and residual
factors.''.
(c) Section 308(a)(1)(B) of the Congressional Budget Act of
1974 is amended by inserting ``and shall include a comparison
of those levels to comparable levels for the current fiscal
year'' before ``if timely submitted''.
SEC. 155. TREATMENT OF EMERGENCIES.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (as amended by section 151) is further
amended by adding at the end the following new paragraph:
``(7) Emergencies.--Budgetary resources for emergencies
shall be at the level provided in the reserve fund for
emergencies for that fiscal year pursuant to section
301(a)(4) of the Congressional Budget Act of 1974.''.
TITLE II--PUTTING A LID ON THE FEDERAL BUDGET
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS AND
MANDATORIES.
(a) Control of Entitlements and Mandatories.--The Balanced
Budget and Emergency Deficit Control Act of 1985 is amended
by adding after section 252 the following new section:
``SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING.
``(a) Cap on Growth of Entitlements.--Effective for fiscal
year 2005 and for each ensuing fiscal year, the total level
of direct spending for all direct spending programs,
projects, and activities (excluding social security) for any
such fiscal year shall not exceed the total level of spending
for all such programs, projects, and activities for the
previous fiscal year after the direct spending
[[Page H5023]]
for each such program, project, or activity is increased by
the higher of the change in the Consumer Price Index for All
Urban Consumers or the inflator (if any) applicable to that
program, project, or activity and the growth in eligible
population for such, project, or activity.
``(b) Sequestration.--Within 15 days after Congress
adjourns to end a session (other than of the second session
of the One Hundred Eighth Congress), and on the same day as a
sequestration (if any) under section 251, there shall be a
sequestration to reduce the amount of direct spending for the
fiscal year beginning in the year the Congress adjourns by
any amount necessary to reduce such spending to the level set
forth in subsection (a) unless that amount is less than
$250,000,000.
``(c) Uniform Reductions; Limitations.--The amount required
to be sequestered for the fiscal year under subsection (a)
shall be obtained from nonexempt direct spending accounts by
actions taken in the following order:
``(1) First.--The reductions in the programs specified in
section 256(a) (National Wool Act and special milk), section
256(b) (student loans), and section 256(c) (foster care and
adoption assistance) shall be made.
``(2) Second.--Any additional reductions that may be
required shall be achieved by reducing each remaining
nonexempt direct spending account by the uniform percentage
necessary to achieve those additional reductions, except
that--
``(A) the low-income programs specified in section 256(d)
shall not be reduced by more than 2 percent;
``(B) the retirement and veterans benefits specified in
sections 256(f), (g), and (h) shall not be reduced by more
than 2 percent in the manner specified in that section; and
``(C) the medicare programs shall not be reduced by more
than 2 percent in the manner specified in section 256(i).
The limitations set forth in subparagraphs (A), (B), and (C)
shall be applied iteratively, and after each iteration the
uniform percentage applicable to all other programs under
this paragraph shall be increased (if necessary) to a level
sufficient to achieve the reductions required by this
paragraph.
``(d) Exclusion of Medicare Prescription Drug Program Until
Fully Operational.--For purposes of this section with respect
to the limitation under subsection (a) for a fiscal year
before fiscal year 2008, direct spending programs and direct
spending shall not be construed to include part D of title
XVIII of the Social Security Act (or spending under part C of
such title that is attributable to such part D).''.
(b) Table of Contents Amendment.--The table of contents set
forth in 250(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by adding after the item
relating to section 252 the following new item:
``Sec. 252A. Enforcing controls on direct spending.''.
SEC. 202. EXEMPT PROGRAMS AND ACTIVITIES.
Section 255 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
``(a) Social Security Benefits; Tier I Railroad Retirement
Benefits; and Certain Medicare Benefits.--(1) Benefits
payable under the old-age, survivors, and disability
insurance program established under title II of the Social
Security Act, and benefits payable under section 3(a),
3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act of
1974, shall be exempt from reduction under any order issued
under this part.
``(2) Payments made under part A of title XVIII (relating
to part A medicare hospital insurance benefits) of the Social
Security Act and payments made under part C of such title
(relating to the Medicare Advantage program) insofar as they
are attributable to part A of such title shall be exempt from
reduction under any order issued under this part.
``(b) Descriptions and Lists.--The following budget
accounts or activities shall be exempt from sequestration:
``(1) net interest;
``(2) all payments to trust funds from excise taxes or
other receipts or collections properly creditable to those
trust funds;
``(3) all payments from one Federal direct spending budget
account to another Federal budget account; and all
intragovernmental funds including those from which funding is
derived primarily from other Government accounts, except to
the extent that such funds are augmented by direct
appropriations for the fiscal year for which the order is in
effect;
``(4) activities resulting from private donations,
bequests, or voluntary contributions to the Government;
``(5) payments from any revolving fund or trust-revolving
fund (or similar activity) that provides deposit insurance or
other Government insurance, Government guarantees, or any
other form of contingent liability, to the extent those
payments result from contractual or other legally binding
commitments of the Government at the time of any
sequestration;
``(6) credit liquidating and financing accounts;
``(7) the following accounts, which largely fulfill
requirements of the Constitution or otherwise make payments
to which the Government is committed:
``Administration of Territories, Northern Mariana Islands
Covenant grants (14-0412-0-1-806);
``Armed Forces Retirement Home Trust Fund, payment of
claims (84-8930-0-7-705);
``Bureau of Indian Affairs, miscellaneous payments to
Indians (14-2303-0-1-452);
``Bureau of Indian Affairs, miscellaneous trust funds,
tribal trust funds (14-9973-0-7-999);
``Claims, defense;
``Claims, judgments, and relief act (20-1895-0-1-806);
``Compact of Free Association, economic assistance pursuant
to Public Law 99-658 (14-0415-0-1-806);
``Compensation of the President (11-0001-0-1-802);
``Customs Service, miscellaneous permanent appropriations
(20-9992-0-2-852);
``Eastern Indian land claims settlement fund (14-2202-0-1-
806);
``Farm Credit Administration, Limitation on Administration
Expenses (78-4131-0-3-351);
``Farm Credit System Financial Assistance Corporation,
interest payments (20-1850-0-1-351);
``Internal Revenue collections of Puerto Rico (20-5737-0-2-
852);
``Panama Canal Commission, operating expenses and capital
outlay (95-5190-0-2-403);
``Payments of Vietnam and USS Pueblo prisoner-of-war claims
(15-0104-0-1-153);
``Payments to copyright owners (03-5175-0-2-376);
``Payments to health care trust funds (75-0580-0-1-571);
``Payments to social security trust funds (75-0404-0-1-
651);
``Payments to the United States territories, fiscal
assistance (14-0418-0-1-801);
``Payments to widows and heirs of deceased Members of
Congress (00-0215-0-1-801);
``Pension Benefit Guaranty Corporation Fund (16-4204-0-3-
601);
``Salaries of Article III judges;
``Washington Metropolitan Area Transit Authority, interest
payments (46-0300-0-1-401);
``(8) the following noncredit special, revolving, or trust-
revolving funds:
``Coinage profit fund (20-5811-0-2-803);
``Comptroller of the Currency;
``Director of the Office of Thrift Supervision;
``Exchange Stabilization Fund (20-4444-0-3-155);
``Federal Housing Finance Board;
``Foreign Military Sales trust fund (11-82232-0-7-155);
``National Credit Union Administration, central liquidating
facility (25-4470-0-3-373);
``National Credit Union Administration, credit union
insurance fund (25-4468-0-3-373);
``National Credit Union Administration operating fund (25-
4056-0-3-373); and
``Resolution Trust Corporation Revolving Fund (22-4055-0-3-
373);
``(9) Thrift Savings Fund;
``(10) appropriations for the District of Columbia to the
extent they are appropriations of locally raised funds;
``(11)(A) any amount paid as regular unemployment
compensation by a State from its account in the Unemployment
Trust Fund (established by section 904(a) of the Social
Security Act);
``(B) any advance made to a State from the Federal
unemployment account (established by section 904(g) of such
Act) under title XII of such Act and any advance appropriated
to the Federal unemployment account pursuant to section 1203
of such Act; and
``(C) any payment made from the Federal Employees
Compensation Account (as established under section 909 of
such Act) for the purpose of carrying out chapter 85 of title
5, United States Code, and funds appropriated or transferred
to or otherwise deposited in such Account; and
``(12)(A) FDIC, Bank Insurance Fund (51-4064-0-3-373);
``(B) FDIC, FSLIC Resolution Fund (51-4065-0-3-373); and
``(C) FDIC, Savings Association Insurance Fund (51-4066-0-
3-373).
``(c) Federal Retirement and Disability Accounts.--The
following Federal retirement and disability accounts shall be
exempt from reduction under any order issued under this part:
``Civil service retirement and disability fund (24-8135-0-
7-602).
``Black Lung Disability Trust Fund (20-8144-0-7-601).
``Foreign Service Retirement and Disability Fund (19-8186-
0-7-602).
``District of Columbia Judicial Retirement and Survivors
Annuity Fund (20-8212-0-7-602).
``Judicial Survivors' Annuities Fund (10-8110-0-7-602).
``Payments to the Railroad Retirement Accounts (60-0113-0-
1-601).
``Tax Court Judges Survivors Annuity Fund (23-8115-0-7-
602).
``Employees Life Insurance Fund (24-8424-0-8-602).
``(d) Federal Administrative Expenses.--
``(1) Notwithstanding any provision of law other than
paragraph (3), administrative expenses incurred by the
departments and agencies, including independent agencies, of
the Government in connection with any program, project,
activity, or account shall be subject to reduction pursuant
to any sequestration order, without regard to any exemption,
exception, limitation, or special rule otherwise applicable
with respect to such program, project, activity, or account,
and regardless of whether the program, project, activity, or
account is self-supporting and does not receive
appropriations.
[[Page H5024]]
``(2) Payments made by the Government to reimburse or match
administrative costs incurred by a State or political
subdivision under or in connection with any program, project,
activity, or account shall not be considered administrative
expenses of the Government for purposes of this section, and
shall be subject to sequestration to the extent (and only to
the extent) that other payments made by the Government under
or in connection with that program, project, activity, or
account are subject to that reduction or sequestration;
except that Federal payments made to a State as reimbursement
of administrative costs incurred by that State under or in
connection with the unemployment compensation programs
specified in subsection (a)(11) shall be subject to reduction
or sequestration under this part notwithstanding the
exemption otherwise granted to such programs under that
subsection.
``(3) Notwithstanding any other provision of law, the
administrative expenses of the following programs shall be
exempt from sequestration:
``(A) Comptroller of the Currency.
``(B) Federal Deposit Insurance Corporation.
``(C) Office of Thrift Supervision.
``(D) National Credit Union Administration.
``(E) National Credit Union Administration, central
liquidity facility.
``(F) Federal Retirement Thrift Investment Board.
``(G) Resolution Funding Corporation.
``(H) Resolution Trust Corporation.
``(I) Board of Governors of the Federal Reserve System.
``(e) Veterans' Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
``General Post Funds (36-8180-0-7-705).
``Veterans Insurance and Indemnities (36-0120-0-1-701).
``Service-Disabled Veterans Insurance Funds (36-4012-0-3-
701).
``Veterans Reopened Insurance Fund (36-4010-0-3-701).
``Servicemembers' Group Life Insurance Fund (36-4009-0-3-
701).
``Post-Vietnam Era Veterans Education Account (36-8133-0-7-
702).
``National Service Life Insurance Fund (36-8132-0-7-701).
``United States Government Life Insurance Fund (36-8150-0-
7-701).
``Veterans Special Life Insurance Fund (36-8455-0-8-701).
``(f) Optional Exemption of Defense and Homeland Security
Accounts.--
``(1) In general.--The President may, with respect to any
defense or homeland security 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. 203. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
(a) In General.--Section 256 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
``(a) National Wool Act and the Special Milk Program.--
Automatic spending increases are increases in outlays due to
changes in indexes in the following programs:
``(1) National Wool Act; and
``(2) Special milk program.
In those programs all amounts other than the automatic
spending increases shall be exempt from reduction under any
sequestration order.
``(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 or 253, origination fees
under sections 438(c)(2) and 455(c) of that Act shall each be
increased by 0.50 percentage point.
``(c) Foster Care and Adoption Assistance Programs.--Any
sequestration order shall make the reduction otherwise
required under the foster care and adoption assistance
programs (established by part E of title IV of the Social
Security Act) only with respect to payments and expenditures
made by States in which increases in foster care maintenance
payment rates or adoption assistance payment rates (or both)
are to take effect during the fiscal year involved, and only
to the extent that the required reduction can be accomplished
by applying a uniform percentage reduction to the Federal
matching payments that each such State would otherwise
receive under section 474 of that Act (for such fiscal year)
for that portion of the State's payments attributable to the
increases taking effect during that year. No State's matching
payments from the Government for foster care maintenance
payments or for adoption assistance maintenance payments may
be reduced by a percentage exceeding the applicable domestic
sequestration percentage. No State may, after the date of the
enactment of this Act, make any change in the timetable for
making payments under a State plan approved under part E of
title IV of the Social Security Act which has the effect of
changing the fiscal year in which expenditures under such
part are made.
``(d) Low-Income Programs.--(1) Benefit payments or
payments to States or other entities for the programs listed
in paragraph (2) shall not be reduced by more than 2 percent
under any sequestration order. When reduced under an end-of-
session sequestration order, those benefit reductions shall
occur starting with the payment made at the start of January.
When reduced under a within-session sequestration order,
those benefit reductions shall occur starting with the next
periodic payment.
``(2) The programs referred to in paragraph (1) are the
following:
``Child Nutrition (12-3539-0-1-605).
``Food Stamp Programs (12-3505-0-1-605).
``Grants to States for Medicaid (75-0512-0-1-551).
``State Children's Health Insurance Fund (75-0515-0-1-551).
``Supplemental Security Income Program (75-0406-0-1-609).
``Temporary Assistance for Needy Families (75-1552-0-1-
609).
``Special supplemental nutrition program for women,
infants, and children (WIC) (12-3510-0-1-605).
``(e) Veterans' Medical Care.--The maximum permissible
reduction in budget authority for Veterans' medical care (36-
0160-0-1-703) for any fiscal year, pursuant to an order
issued under section 254, shall be 2 percent.
``(f) Federal Retirement Programs.--
``(1) For each of the programs listed in paragraph (2) and
except as provided in paragraph (3), monthly (or other
periodic) benefit payments shall be reduced by the uniform
percentage applicable to direct spending sequestrations for
such programs, which shall in no case exceed 2 percent under
any sequestration order. When reduced under an end-of-session
sequestration order, those benefit reductions shall occur
starting with the payment made at the start of January or 7
weeks after the order is issued, whichever is later. When
reduced under a within-session sequestration order, those
benefit reductions shall occur starting with the next
periodic payment.
``(2) The programs subject to paragraph (1) are:
``Central Intelligence Agency Retirement and Disability
Fund (56-3400-0-1-054).
``Comptrollers General Retirement System (05-0107-0-1-801)
Payments to the Foreign Service Retirement and Disability
Fund (72-1036-0-1-153).
``Judicial Officers' Retirement Fund (10-8122-0-7-602).
``Claims Judges' Retirement Fund (10-8124-0-7-602).
``Pensions for former Presidents (47-0105-0-1-802).
``National Oceanic and Atmospheric Administration
Retirement (13-1450-0-1-306).
``Railroad Industry Pension Fund (60-8011-0-7-601).
``Retired pay, Coast Guard (70-0602-0-1-403).
``Retirement pay and medical benefits for commissioned
officers, Public Health Service (75-0379-0-1-551).
``Payments to Civil Service Retirement and Disability Fund
(24-0200-0-1-805).
``Payments to the Foreign Service Retirement and Disability
Fund (72-1036-0-1-153).
``Payments to Judiciary Trust Funds (10-0941-0-1-752).
``(g) Veterans Programs.--To achieve the total percentage
reduction required by any order issued under this part, the
percentage reduction that shall apply to payments under the
following programs shall in no event exceed 2 percent:
``Canteen Service Revolving Fund (36-4014-0-3-705).
``Medical Center Research Organizations (36-4026-0-3-703).
``Disability Compensation Benefits (36-0102-0-1-701).
``Education Benefits (36-0137-0-1-702).
``Vocational Rehabilitation and Employment Benefits (36-
0135-0-1-702).
``Pensions Benefits (36-0154-0-1-701).
``Burial Benefits (36-0139-0-1-701).
``Guaranteed Transitional Housing Loans For Homeless
Veterans Program Account (36-1119-0-1-704).
``Housing Direct Loan Financing Account (36-4127-0-1-704).
``Housing Guaranteed Loan Financing Account (36-4129-0-3-
704).
``Vocational Rehabilitation and Education Direct Loan
Financing Account (36-4259-0-3-702).
``(h) Military Health and Retirement.--To achieve the total
percentage reduction in military retirement required by any
order issued under this part, the percentage reduction that
shall apply to payments under the Military retirement fund
(97-8097-0-7-602), payments to the military retirement fund
(97-0040-0-1-054), and the Defense Health Program (97-0130-0-
1-051) shall in no event exceed 2 percent.
``(i) Medicare Program.--
``(1) Calculation of reduction in individual payment
amounts.--To achieve the total percentage reduction in those
programs required by any order issued under this part, the
percentage reduction that shall apply to payments under the
health insurance programs under title XVIII of the Social
Security Act (other than payments described in section
255(a)(2)) that are subject to such order for services
furnished after any sequestration order is issued shall be
such that the reduction made in payments under that order
shall achieve the required total percentage reduction in
those payments for that fiscal year as determined on a 12-
month basis. However, the percentage reduction
[[Page H5025]]
under any such program shall in no case exceed 2 percent
under any sequestration order.
``(2) Timing of application of reductions.--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 after the effective date of
the order.
``(3) 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.
``(4) Application to parts c and d.--The reductions
otherwise required under parts C and D of title XVIII of the
Social Security Act with respect to a fiscal year shall be
applied to the calendar year that begins after the end of the
fiscal year to which the applicable sequestration order
applies.
``(j) Federal Pay.--
``(1) In general.--For purposes of any order issued under
section 254, new budget authority to pay Federal personnel
shall be reduced by the applicable uniform percentage, but no
sequestration order may reduce or have the effect of reducing
the rate of pay to which any individual is entitled under any
statutory pay system (as increased by any amount payable
under section 5304 of title 5, United States Code, or section
302 of the Federal Employees Pay Comparability Act of 1990)
or the rate of any element of military pay to which any
individual is entitled under title 37, United States Code, or
any increase in rates of pay which is scheduled to take
effect under section 5303 of title 5, United States Code,
section 1009 of title 37, United States Code, or any other
provision of law.
``(2) Definitions.--For purposes of this subsection:
``(A) The term `statutory pay system' shall have the
meaning given that term in section 5302(1) of title 5, United
States Code.
``(B) The term `elements of military pay' means--
``(i) the elements of compensation of members of the
uniformed services specified in section 1009 of title 37,
United States Code,
``(ii) allowances provided members of the uniformed
services under sections 403a and 405 of such title, and
``(iii) cadet pay and midshipman pay under section 203(c)
of such title.
``(C) The term `uniformed services' shall have the meaning
given that term in section 101(3) of title 37, United States
Code.
``(k) Child Support Enforcement Program.--Any sequestration
order shall accomplish the full amount of any required
reduction in expenditures under sections 455 and 458 of the
Social Security Act by reducing the Federal matching rate for
State administrative costs under such program, as specified
(for the fiscal year involved) in section 455(a) of such Act,
to the extent necessary to reduce such expenditures by that
amount.
``(l) Extended Unemployment Compensation.--(1) A State may
reduce each weekly benefit payment made under the Federal-
State Extended Unemployment Compensation Act of 1970 for any
week of unemployment occurring during any period with respect
to which payments are reduced under an order issued under
this title by a percentage not to exceed the percentage by
which the Federal payment to the State under section 204 of
such Act is to be reduced for such week as a result of such
order.
``(2) A reduction by a State in accordance with
subparagraph (A) shall not be considered as a failure to
fulfill the requirements of section 3304(a)(11) of the
Internal Revenue Code of 1954.
``(m) 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)
Payments and loan eligibility under any contract entered into
with a person by the Commodity Credit Corporation prior to
the time any sequestration order has been issued shall not be
reduced by an order subsequently issued. Subject to
subparagraph (B), after any sequestration order is issued for
a fiscal year, any cash payments made by the Commodity Credit
Corporation--
``(i) under the terms of any one-year contract entered into
in or after such fiscal year and after the issuance of the
order; and
``(ii) out of an entitlement account,
to any person (including any producer, lender, or guarantee
entity) shall be subject to reduction under the order.
``(B) Each 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 any
sequestration order, the order shall provide that the
necessary reduction in payments under contracts applicable to
the commodity be uniformly applied to all contracts for
succeeding crops of the commodity, under the authority
provided in paragraph (3).
``(3) Delayed reduction in outlays permissible.--
Notwithstanding any other provision of this title, if any
sequestration order is issued with respect to a fiscal year,
any reduction under the order applicable to contracts
described in paragraph (2) may provide for reductions in
outlays for the account involved to occur in the fiscal years
following the fiscal year to which the order applies.
``(4) Uniform percentage rate of reduction and other
limitations.--All reductions described in paragraph (2) that
are required to be made in connection with any sequestration
order with respect to a fiscal year--
``(A) 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; and
``(B) with respect to commodity price support and income
protection programs, shall be made in such manner and under
such procedures as will attempt to ensure that--
``(i) uncertainty as to the scope of benefits under any
such program is minimized;
``(ii) any instability in market prices for agricultural
commodities resulting from the reduction is minimized; and
``(iii) normal production and marketing relationships among
agricultural commodities (including both contract and non-
contract commodities) are not distorted.
In meeting the criterion set out in clause (iii) of
subparagraph (B) of the preceding sentence, the President
shall take into consideration that reductions under an order
may apply to programs for two or more agricultural
commodities that use the same type of production or marketing
resources or that are alternative commodities among which a
producer could choose in making annual production decisions.
``(5) Certain authority not to be limited.--Nothing in this
title shall limit or reduce in any way any appropriation that
provides the Commodity Credit Corporation with funds to cover
the Corporation's net realized losses.
``(n) Postal Service Fund.--Notwithstanding any other
provision of law, any sequestration of the Postal Service
Fund shall be accomplished by a payment from that Fund to the
General Fund of the Treasury, and the Postmaster General of
the United States shall make the full amount of that payment
during the fiscal year to which the presidential
sequestration order applies.
``(o) Effects of Sequestration.--The effects of
sequestration shall be as follows:
``(1) Budgetary resources sequestered from any account
other than an entitlement trust, special, or revolving fund
account shall revert to the Treasury and be permanently
canceled.
``(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 that lower appropriation being obligated
as though it had been the pre-sequestration appropriation and
no sequestration had occurred.
``(4) Except as otherwise provided, obligations in
sequestered direct spending accounts shall be reduced in the
fiscal year in which a sequestration occurs and in all
succeeding fiscal years.
``(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) Except as otherwise provided, sequestration in
accounts for which obligations are indefinite shall be taken
in a manner to ensure that obligations in the fiscal year of
a sequestration and succeeding fiscal years are reduced, from
the level that would actually have occurred, by the
applicable sequestration percentage.''.
(b) Conforming Amendment.--The table of contents set forth
in 250(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by amending the item relating
to section 256 to read as follows:
``Sec. 256. Exceptions, limitations, and special rules.''.
SEC. 204. POINT OF ORDER.
(a) Entitlement Point of Order.--Section 312 of the
Congressional Budget Act of 1974 is amended by adding at the
end the following new subsection:
``(g) Entitlement Point of Order.--It shall not be in order
in the House of Representatives or the Senate to consider any
bill, joint resolution, amendment, or conference report
that--
[[Page H5026]]
``(1) increases aggregate level of direct spending for any
ensuing fiscal year or
``(2) includes any provision that has the effect of
modifying the application of section 252A of the Balanced
Budget and Emergency Deficit Control Act of 1985 to any
entitlement program subject to sequestration or exempt from
sequestration under such Act.''.
SEC. 205. TECHNICAL AND CONFORMING AMENDMENTS.
The Balanced Budget and Emergency Deficit Control Act of
1985 is amended as follows:
(1) Section 251(a)(1) is amended by inserting ``, section
252A,'' after ``section 252''.
(2) Section 254(c)(4)(B) is amended by inserting ``or
section 252A'' after ``section 252''.
(3) Section 254(c) is amended by redesignating paragraph
(5) as paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Direct spending control sequestration reports.--The
preview reports shall set forth, for the current year and the
budget year, estimates for each of the following:
``(A) The total level of direct spending for all programs,
projects, and activities (excluding social security).
``(B) The sequestration percentage or (if the required
sequestration percentage is greater than the maximum
allowable percentage for medicare) percentages necessary to
comply with section 252A.''.
(4) Section 254(f) is amended by redesignating paragraphs
(4) and (5) as paragraphs (5) and (6) and by inserting after
paragraph (3) the following new paragraph:
``(4) Direct spending control sequestration reports.--The
final reports shall contain all the information required in
the direct spending control sequestration preview reports. In
addition, these reports shall contain, for the budget year,
for each account to be sequestered, estimates of the baseline
level of sequesterable budgetary resources and resulting
outlays and the amount of budgetary resources to be
sequestered and resulting outlay reductions. The reports
shall also contain estimates of the effects on outlays of the
sequestration in each outyear for direct spending
programs.''.
(5) Section 258C(a)(1) is amended by inserting ``, 252A,''
after ``section 252''.
SEC. 206. ESTABLISHMENT OF FAMILY BUDGET PROTECTION MANDATORY
ACCOUNT.
(a) Budget Protection Mandatory Account.--Title III of the
Congressional Budget Act of 1974 (as amended by section 521)
is further amended by adding at the end the following new
sections:
``budget protection mandatory account
``Sec. 320. (a) Establishment of Account.--The chairman of
the Committee on the Budget of the House of Representatives
and of the Senate shall each maintain an account to be known
as the `Budget Protection Mandatory Account'. The Account
shall be divided into entries corresponding to the House or
Senate committees, as applicable, that received allocations
under section 302(a) in the most recently adopted concurrent
resolution on the budget, except that it shall not include
the Committee on Appropriations of that House and each entry
shall consist of the `First Year Budget Protection Balance'
and the `Five Year Budget Protection Balance'.
``(b) Components.--Each entry shall consist only of amounts
credited to it under subsection (c). No entry of a negative
amount shall be made.
``(c) Crediting of Amounts to Account.--(1) Whenever a
Member or Senator, as the case may be, offers an amendment to
a bill that reduces the amount of mandatory budget authority
provided either under current law or proposed to be provided
by the bill under consideration, that Member or Senator may
state the portion of such reduction achieved in the first
year covered by the most recently adopted concurrent
resolution on the budget and in addition the portion of such
reduction achieved in the first five years covered by the
most recently adopted concurrent resolution on the budget
that shall be--
``(A) credited to the First Year Budget Protection Balance
and the Five Year Budget Protection Balance in the House or
Senate, as applicable;
``(B) used to offset an increase in other new budget
authority;
``(C) allowed to remain within the applicable section
302(a) allocation; or
``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new
budget authority resulting from the amendment shall be
credited to the First Year Budget Protection Balance and the
Five Year Budget Protection Balance, as applicable, if the
amendment is agreed to.
``(2) Except as provided by paragraph (3), the chairman of
the Committee on the Budget of the House or Senate, as
applicable, shall, upon the engrossment of any bill, other
than an appropriation bill, by the House or Senate, as
applicable, credit to the applicable entry balances amounts
of new budget authority and outlays equal to the net amounts
of reductions in budget authority and in outlays resulting
from amendments agreed to by that House to that bill.
``(3) When computing the net amounts of reductions in
budget authority and in outlays resulting from amendments
agreed to by the House or Senate, as applicable, to a bill,
the chairman of the Committee on the Budget of that House
shall only count those portions of such amendments agreed to
that were so designated by the Members or Senators offering
such amendments as amounts to be credited to the First Year
Budget Protection Balance and the Five Year Budget Protection
Balance, or that fall within the last sentence of paragraph
(1).
``(4) The chairman of the Committee on the Budget of the
House and of the Senate shall each maintain a running tally
of the amendments adopted reflecting increases and decreases
of budget authority in the bill as reported to its House.
This tally shall be available to Members or Senators during
consideration of any bill by that House.
``(d) Calculation of Lock-Box Savings in House and
Senate.--For the purposes of enforcing section 302(a), upon
the engrossment of any bill, other than an appropriation
bill, by the House or Senate, as applicable, the amount of
budget authority and outlays calculated pursuant to
subsection (c)(3) shall be counted against the 302(a)
allocation provided to the applicable committee or committees
of that House which reported the bill as if the amount
calculated pursuant to subsection (c)(3) was included in the
bill just engrossed.
``(e) Definition.--As used in this section, the term
`appropriation bill' means any general or special
appropriation bill, and any bill or joint resolution making
supplemental, deficiency, or continuing appropriations
through the end of fiscal year 2005 or any subsequent fiscal
year, as the case may be.''.
Subtitle B--Discretionary Spending Limits
SEC. 211. ENFORCING DISCRETIONARY SPENDING LIMITS.
(a) Discretionary Spending Limits.--Sections 251(b) and (c)
of the Balanced Budget and Emergency Deficit Control of Act
of 1985 are amended to read as follows:
``(b) Discretionary Spending Limit.--As used in this part,
the term `discretionary spending limit' means--
``(1) with respect to fiscal year 2005--
``(A) $864,261,000,000 in new budget authority of which no
more than $400,625,000,000 shall be for the nondefense
category; and
``(B) $850,495,800,000 in outlays of which no more than
$433,158,400,000 shall be for the nondefense category;
``(2) with respect to fiscal year 2006--
``(A) $838,669,000,000 in new budget authority of which no
more than $409,038,100,000 shall be for the nondefense
category; and
``(B) $872,471,400,000 in outlays of which no more than
$448,440,900,000 shall be for the nondefense category;
``(3) with respect to fiscal year 2007--
``(A) $856,281,000,000 in new budget authority of which no
more than $417,627,900,000 shall be for the nondefense
category; and
``(B) $886,373,800,000 in outlays of which no more than
$458,828,900,000 shall be for the nondefense category;
``(4) with respect to fiscal year 2008--
``(A) $874,263,000,000 in new budget authority of which no
more than $426,398,100,000 shall be for the nondefense
category; and
``(B) $907,923,200,000 in outlays of which no more than
$466,518,700,000 shall be for the nondefense category;
``(5) with respect to fiscal year 2009--
``(A) $892,622,000,000 in new budget authority of which no
more than $435,352,500,000 shall be for the nondefense
category; and
``(B) $922,436,600,000 in outlays of which no more than
$472,403,700,000 shall be for the nondefense category;
``(6) with respect to fiscal year 2010--
``(A) $911,367,000,000 in new budget authority of which no
more than $444,494,900,000 shall be for the nondefense
category; and
``(B) $942,949,400,000 in outlays of which no more than
$483,388,200,000 shall be for the nondefense category;
``(7) with respect to fiscal year 2011--
``(A) $930,506,000,000 in new budget authority of which no
more than $453,829,300,000 shall be for the nondefense
category; and
``(B) $966,467,600,000 in outlays of which no more than
$492,649,700,000 shall be for the nondefense category;
``(8) with respect to fiscal year 2012--
``(A) $950,047,000,000 in new budget authority of which no
more than $463,359,700,000 shall be for the nondefense
category; and
``(B) $977,831,100,000 in outlays of which no more than
$502,049,800,000 shall be for the nondefense category;
``(9) with respect to fiscal year 2013--
``(A) $969,998,000,000 in new budget authority of which no
more than $473,090,200,000 shall be for the nondefense
category; and
``(B) $1,001,230,000,000 in outlays of which no more than
$511,597,600,000 shall be for the nondefense category;
``(10) with respect to fiscal year 2014--
``(A) $990,368,000,000 in new budget authority of which no
more than $483,025,100,000 shall be for the nondefense
category; and
``(B) $1,020,567,000,000 in outlays of which no more than
$521,375,000,000 shall be for the nondefense category;''.
(b) Discretionary Spending Limit Point of Order.--Section
312 of the Congressional Budget Act of 1974 (as amended by
section 214(a)) is further amended by adding at the end the
following new subsection:
``(h) Discretionary Spending Limit Point of Order.--It
shall not be in order in the House of Representatives or the
Senate to consider any bill, joint resolution, amendment, or
conference report that--
``(1) increases the discretionary spending limits for any
ensuing fiscal year after the budget year; or
``(2) would cause the discretionary spending limits for the
budget year to be breached.''.
(c) Advance Appropriation Point of Order.--Section 312 of
the Congressional
[[Page H5027]]
Budget Act of 1974 (as amended by this section) is further
amended by adding at the end the following new subsection:
``(i) Advance Appropriation Point of Order.--It shall not
be in order in the House of Representatives or the Senate to
consider any appropriation bill or joint resolution, or
amendment thereto or conference report thereon, that provides
advance discretionary new budget authority that first becomes
available for any fiscal year after the budget year at an
amount for any program, project, or activity above the amount
of appropriations for fiscal year 2004 for such program,
project, or activity.''.
SEC. 212. ESTABLISHMENT OF FAMILY BUDGET PROTECTION
DISCRETIONARY ACCOUNT.
(a) Budget Protection Mandatory Account.--Title III of the
Congressional Budget Act of 1974 is amended by adding at the
end the following new section:
``budget protection mandatory account
``Sec. 321. (a) Establishment of Account.--The chairman of
the Committee on the Budget of the House of Representatives
and of the Senate shall each maintain an account to be known
as the `Budget Protection Mandatory Account'. The Account
shall be divided into entries corresponding to the House or
Senate committees, as applicable, that received allocations
under section 302(a) in the most recently adopted concurrent
resolution on the budget, except that it shall not include
the Committee on Appropriations of that House and each entry
shall consist of the `First Year Budget Protection Balance'
and the `Five Year Budget Protection Balance'.
``(b) Components.--Each entry shall consist only of amounts
credited to it under subsection (c). No entry of a negative
amount shall be made.
``(c) Crediting of Amounts to Account.--(1) Whenever a
Member or Senator, as the case may be, offers an amendment to
a bill that reduces the amount of mandatory budget authority
provided either under current law or proposed to be provided
by the bill under consideration, that Member or Senator may
state the portion of such reduction achieved in the first
year covered by the most recently adopted concurrent
resolution on the budget and in addition the portion of such
reduction achieved in the first five years covered by the
most recently adopted concurrent resolution on the budget
that shall be--
``(A) credited to the First Year Budget Protection Balance
and the Five Year Budget Protection Balance in the House or
Senate, as applicable;
``(B) used to offset an increase in other new budget
authority;
``(C) allowed to remain within the applicable section
302(a) allocation; or
``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new
budget authority resulting from the amendment shall be
credited to the First Year Budget Protection Balance and the
Five Year Budget Protection Balance, as applicable, if the
amendment is agreed to.
``(2) Except as provided by paragraph (3), the chairman of
the Committee on the Budget of the House or Senate, as
applicable, shall, upon the engrossment of any bill, other
than an appropriation bill, by the House or Senate, as
applicable, credit to the applicable entry balances amounts
of new budget authority and outlays equal to the net amounts
of reductions in budget authority and in outlays resulting
from amendments agreed to by that House to that bill.
``(3) When computing the net amounts of reductions in
budget authority and in outlays resulting from amendments
agreed to by the House or Senate, as applicable, to a bill,
the chairman of the Committee on the Budget of that House
shall only count those portions of such amendments agreed to
that were so designated by the Members or Senators offering
such amendments as amounts to be credited to the First Year
Budget Protection Balance and the Five Year Budget Protection
Balance, or that fall within the last sentence of paragraph
(1).
``(4) The chairman of the Committee on the Budget of the
House and of the Senate shall each maintain a running tally
of the amendments adopted reflecting increases and decreases
of budget authority in the bill as reported to its House.
This tally shall be available to Members or Senators during
consideration of any bill by that House.
``(d) Calculation of Lock-Box Savings in House and
Senate.--For the purposes of enforcing section 302(a), upon
the engrossment of any bill, other than an appropriation
bill, by the House or Senate, as applicable, the amount of
budget authority and outlays calculated pursuant to
subsection (c)(3) shall be counted against the 302(a)
allocation provided to the applicable committee or committees
of that House which reported the bill as if the amount
calculated pursuant to subsection (c)(3) was included in the
bill just engrossed.
``(e) Definition.--As used in this section, the term
`appropriation bill' means any general or special
appropriation bill, and any bill or joint resolution making
supplemental, deficiency, or continuing appropriations
through the end of fiscal year 2005 or any subsequent fiscal
year, as the case may be.''.
(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 items:
``Sec. 320. Family budget protection mandatory account.
``Sec. 321. Family budget protection discretionary account.''.
SEC. 213. REVENUE ADJUSTMENT.
If an amendment is designated to be used to offset a
decrease in receipts for a fiscal year pursuant to section
320(c)(1)(D) or section 321(c)(1)(D) of the Congressional
Budget Act of 1974, then the applicable level of revenues for
such fiscal year for purposes of section 311(a) of such Act
shall be reduced by the amount of such amendment.
Subtitle C--Long-term Unfunded Obligations
SEC. 221. LONG-TERM UNFUNDED OBLIGATIONS.
(a) In General.--Title IV of the Congressional Budget Act
of 1974 is amended by adding at the end the following:
PART C--LONG-TERM UNFUNDED OBLIGATIONS
``SEC. 441. ANALYSIS OF LONG-TERM UNFUNDED OBLIGATIONS.
``Beginning in fiscal year 2006, the President's budget
shall include an analysis of long-term unfunded obligations.
This analysis shall include:
``(1) An analysis of the impact of long-term unfunded
obligations in applicable entitlement programs on the long-
term level of unified budget outlays and the unified budget
surplus or deficit, in relation to the projected level of the
Gross Domestic Product.
``(2) A report on the impact of legislation enacted during
the previous session of Congress that increases the long-term
unfunded obligation in any applicable group of entitlement
program.
``(3) An analysis of the impact of legislation proposed in
the President's budget on the long-term unfunded obligation
in any applicable entitlement program.
``SEC. 442. POINT OF ORDER AGAINST LEGISLATION INCREASING
LONG-TERM UNFUNDED OBLIGATIONS.
``It shall not be in order in the House of Representatives
or in the Senate to consider any bill, joint resolution,
motion, amendment, or conference report that would increase
the long-term unfunded obligation in any applicable group of
entitlement programs.
``SEC. 443. STANDARD FOR DETERMINING INCREASE IN LONG-TERM
UNFUNDED OBLIGATION.
``For the purpose of this part, legislation shall be
considered to increase the long-term unfunded obligation of
an applicable group of entitlement programs if it either--
``(1) increases the excess of the discounted present value
of the expenditures of programs in the group above the
discounted present value of the dedicated receipts of
programs in the group over a long-term estimating period by
more than an applicable threshold; or
``(2) increases the dollar level of the expenditures of
programs in the group above the dedicated receipts of
programs in the group above the dedicated receipts of
programs in the group in the last year of the estimating
period by more than the applicable threshold.
``SEC. 444. LONG-TERM UNFUNDED OBLIGATION ANALYSES BY
CONGRESSIONAL BUDGET OFFICE.
The Director of the Congressional Budget Office shall, to
the extent practicable, prepare for each bill or resolution
of a public character reported by any committee of the House
of Representatives or the Senate (except the Committee on
Appropriations of each House), and submit to such committee--
``(1) an estimate of any increase of the long-term unfunded
obligation of any applicable entitlement program which would
be incurred in carrying out such bill or resolution as
measured by the increase of the excess of the discounted
present value of the expenditures of such program above the
discounted present value of the dedicated receipts of such
program over a long-term estimating period by more than an
applicable threshold; and
``(2) an estimate of any increase in the dollar level of
the expenditures of such program above the dedicated receipts
of such program above the dedicated receipts of such program
in the last year of the estimating period by more than the
applicable threshold.
The estimates 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.
``SEC. 445. DEFINITIONS.
``As used in this part--
``(1) the term `applicable entitlement program' shall be
defined as any one of the following programs:
``(A) Old Age, Survivors, and Disability Insurance.
``(B) Medicare (combined hospital insurance and
supplemental medical insurance).
``(C) Civilian retirement and disability (combined Civil
Service Retirement System and Federal Employees Retirement
System).
``(D) Foreign Service Retirement and Disability (combined
Foreign Service Retirement and Disability System and Foreign
Service Pension System).
``(E) Retired Employees Health Benefits.
``(F) Military Retirement System.
``(G) Uniformed Services Retiree Health Care System.
``(H) Railroad Retirement System (combined Rail Industry
Pension Fund, Social Security Equivalent Benefit Account, and
National Railroad Retirement Investment Trust).
[[Page H5028]]
``(I) Supplemental Security Income (SSI).
``(J) For estimates made on or after January 1, 2006,
veterans disability compensation.
``(K) Any other entitlement program with regularly
available long-term estimates.
``(2) The term `entitlement program with regularly
available long-term estimates' means a program for which the
Director of the Congressional Budget Office, in consultation
with the Committees on the Budget of the House of
Representatives and the Senate and the Director of the Office
of Management and Budget, has determined that it is feasible
to make long-term estimates of expenditures and dedicated
receipts based on explicit demographic, economic, and other
estimating assumptions. The Director shall notify the House
and Senate Committees on the Budget in writing, whenever he
or she makes such a determination.
``(3) The term `applicable group of entitlement programs'
shall be defined as any of the following:
``(A) Old Age, Survivors, and Disability Insurance.
``(B) All applicable entitlement programs except Old Age,
Survivors, and Disability Insurance.
``(4) The term `long-term estimating period' shall be
defined as 75 years, starting with the current year, for all
applicable entitlement programs except for Old Age,
Survivors, and Disability Insurance. For Old Age, Survivors,
and Disability Insurance, the term shall be defined as the
infinite period of years utilized in the most recent annual
report of the Board of Trustees provided pursuant to section
201(c)(2) of the Social Security Act.
``(5) The term `last year of the estimating period' shall
be defined as the 75th year of the long-term estimating
period.
``(6) The term `dedicated receipts' shall be defined, for
all applicable entitlement programs other than Medicare, as
taxes and fees received from the public, payments received
from Federal agencies on behalf of Federal agency employees
who are participants in the program, transfers received by
the program under section 7(c)(2) of the Railroad Retirement
Act of 1974 (45 U.S.C. 231f(c)(2)), and transfers from the
general fund of amounts equivalent to income tax receipts
under section 86 of the Internal Revenue Code. Dedicated
receipts shall not include payments from the general fund to
amortize a program's unfunded liability or payments of
interest on a program's trust fund holdings. For Medicare,
`dedicated receipts' shall be defined according to section
801(c)(3) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003.
``(7) The term `expenditures' shall be defined, for all
applicable entitlement programs other than Medicare, to
include benefit payments, administrative expenses to the
extent paid from a dedicated fund, and transfers to other
programs made under section 7(c)(2) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231f(c)(2)). For Medicare,
`expenditures' shall be defined according to section
801(c)(4) of the Medicare prescription Drug, Improvement, and
Modernization Act of 2003.
``(8) The term `applicable threshold' shall be defined as:
``(A) For a group of applicable entitlement programs over a
long-term estimating period--
``(i) 0.02 percent of the present value of the taxable
payroll of the group of programs over the estimating period,
for legislation affecting Old Age, Survivors, and Disability
Insurance or Medicare; and
``(ii) 1 percent of the present value of the expenditures
over the estimating period of the programs in the group that
are affected by the legislation.
``(B) For a group of applicable entitlement programs in the
last year of the estimating period--
``(i) 0.02 percent of the taxable payroll of the group of
programs in that year, for legislation affecting Old Age,
Survivors, and Disability Insurance or Medicare;
``(ii) 0.01 percent of Gross Domestic Product in that year;
or
``(iii) 1 percent of the expenditures in that year of the
programs in the group that are affected by the
legislation.''.
(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 428 the following:
`Part C--Long-Term Unfunded Obligations
``Sec. 441. Analysis of long-term unfunded obligations.
``Sec. 442. Point of order against legislation increasing long-term
unfunded obligations.
``Sec. 443. Standard for determining increase in long-term unfunded
obligation.
``Sec. 444. Long-term unfunded obligation analyses by congressional
budget office.
``Sec. 445. Definitions.
SEC. 222. POINTS OF ORDER.
Section 904 of the Congressional Budget Act of 1974 is
amended as follows:
(1) Subsection (c)(1) is amended by adding ``442,'' after
``310(d)(2), 313,''.
(2) Subsection (d)(2) is amended by adding ``442,'' after
``310(d)(2), 313,''.
SEC. 223. SOCIAL SECURITY.
Section 13302(a) of subtitle C of the Budget Enforcement
Act of 1990 is amended to read as follows:
``(a) In General.--It shall be not be in order in the House
of Representatives to consider any bill, or joint resolution,
as reported, or any amendment thereto or conference report
thereon, if, upon enactment, such legislation under
consideration would increase the long-term unfunded
obligation of the OASDI program, as defined in section 443 of
the Congressional Budget Act of 1974.''.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE.
Subtitle A--Sunsetting
SEC. 301. REAUTHORIZATION OF DISCRETIONARY PROGRAMS AND
UNEARNED ENTITLEMENTS.
(a) Fiscal Year 2008.--Effective October 1, 2007, spending
authority for each unearned entitlement and high-cost
discretionary spending program is frozen at then current
levels unless such spending authority is reauthorized after
the date of enactment of this Act.
(b) Fiscal Year 2009.--Effective October 1, 2008, spending
authority for each discretionary spending program (not
including high-cost discretionary spending programs) is
frozen at then current levels unless such spending authority
is reauthorized after the date of enactment of this Act.
(c) Definitions.--For purposes of this title--
(1) the term ``unearned entitlement'' means an entitlement
not earned by service or paid for in total or in part by
assessments or contributions such as Social Security,
veterans' benefits, retirement programs, and medicare; and
(2) the term ``high-cost discretionary program'' means the
most expensive one-third of discretionary program within each
budget function account.
SEC. 302. POINT OF ORDER.
(a) In General.--It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint
resolution, amendment, or conference report that includes any
provision that appropriates funds above current levels unless
such appropriation has been previously authorized by law.
(b) Waiver or Suspension.--This section may be waived or
suspended in the House of Representatives or the Senate only
by the affirmative vote of two-thirds of the Members, duly
chosen and sworn.
SEC. 303. DECENNIAL SUNSETTING.
(a) First Decennial Census Year.--Effective on the first
day of the fiscal year beginning in the first decennial
census year after the year 2010 and each 10 years thereafter,
the spending authority described in section 301(a) is
terminated unless such spending authority is reauthorized
after the last date the spending authority was required to be
reauthorized under this title.
(b) First Decennial Census Year.--Effective on the first
day of the fiscal year beginning in the year after the first
decennial census year after the year 2010 and each 10 years
thereafter, the spending authority described in section
301(b) is terminated unless such spending authority is
reauthorized after the last date the spending authority was
required to be reauthorized under this title.
Subtitle B--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
SEC. 311. ENHANCED CONSIDERATION OF CERTAIN PROPOSED
RESCISSIONS.
(a) In General.--Part B of title X of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 681 et
seq.) is amended by redesignating sections 1013 through 1017
as sections 1014 through 1018, respectively, and by inserting
after section 1012 the following new section:
``ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS
``Sec. 1013. (a) Proposed Rescission of Budget Authority
Identified as Wasteful Spending.--The President may propose,
at the time and in the manner provided in subsection (b), the
rescission of any budget authority provided in an
appropriation Act that he identifies as wasteful spending. If
the President proposes a rescission of budget authority, he
may also propose to reduce the appropriate discretionary
spending limits for new budget authority and outlays flowing
therefrom set forth in section 251(b) of the Balanced Budget
and Emergency Deficit Control Act of 1985 by an amount that
does not exceed the amount of the proposed rescission. Funds
made available for obligation under this procedure may not be
proposed for rescission again under this section.
``(b) Transmittal of Special Message.--
``(1) The President may transmit to Congress a special
message proposing to rescind amounts of budget authority and
include with that special message a draft bill that, if
enacted, would only rescind that budget authority unless the
President also proposes a reduction in the appropriate
discretionary spending limits set forth in section 251(b) of
the Balanced Budget and Emergency Deficit Control Act of
1985. That bill shall clearly identify the amount of budget
authority that is proposed to be rescinded for each program,
project, or activity to which that budget authority relates.
``(2) In the case of an appropriation Act that includes
accounts within the jurisdiction of more than one
subcommittee of the Committee on Appropriations, the
President in proposing to rescind budget authority under this
section shall send a separate special message and
accompanying draft bill for accounts within the jurisdiction
of each subcommittee.
``(3) Each special message shall specify, with respect to
the budget authority proposed to be rescinded, the following:
[[Page H5029]]
``(A) The amount of budget authority which he proposes to
be rescinded.
``(B) Any account, department, or establishment of the
Government to which such budget authority is available for
obligation, and the specific project or governmental
functions involved.
``(C) The reasons why the budget authority should be
rescinded, including why he considers it to be wasteful
spending.
``(D) To the maximum extent practicable, the estimated
fiscal, economic, and budgetary effect (including the effect
on outlays and receipts in each fiscal year) of the proposed
rescission.
``(E) All facts, circumstances, and considerations relating
to or bearing upon the proposed rescission and the decision
to effect the proposed rescission, and to the maximum extent
practicable, the estimated effect of the proposed rescission
upon the objects, purposes, and programs for which the budget
authority is provided.
``(F) A reduction in the appropriate discretionary spending
limits set forth in section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985, if proposed by the
President.
``(c) Procedures for Expedited Consideration.--
``(1)(A) Before the close of the second legislative day of
the House of Representatives after the date of receipt of a
special message transmitted to Congress under subsection (b),
the majority leader or minority leader of the House of
Representatives shall introduce (by request) the draft bill
accompanying that special message. If the bill is not
introduced as provided in the preceding sentence, then, on
the third legislative day of the House of Representatives
after the date of receipt of that special message, any Member
of that House may introduce the bill.
``(B) The bill shall be referred to the Committee on
Appropriations. The committee shall report the bill without
substantive revision and with or without recommendation. The
bill shall be reported not later than the seventh legislative
day of that House after the date of receipt of that special
message. If that committee fails to report the bill within
that period, that committee shall be automatically discharged
from consideration of the bill, and the bill shall be placed
on the appropriate calendar.
``(C) A vote on final passage of the bill shall be taken in
the House of Representatives on or before the close of the
10th legislative day of that House after the date of the
introduction of the bill in that House. If the bill is
passed, the Clerk of the House of Representatives shall cause
the bill to be engrossed, certified, and transmitted to the
Senate within one calendar day of the day on which the bill
is passed.
``(2)(A) A motion in the House of Representatives to
proceed to the consideration of a bill under this section
shall be highly privileged and not debatable. An amendment to
the motion shall not be in order, nor shall it be in order to
move to reconsider the vote by which the motion is agreed to
or disagreed to.
``(B) Debate in the House of Representatives on a bill
under this section shall not exceed 4 hours, which shall be
divided equally between those favoring and those opposing the
bill. A motion to further limit debate shall not be
debatable. It shall not be in order to move to recommit a
bill under this section or to move to reconsider the vote by
which the bill is agreed to or disagreed to.
``(C) Appeals from decisions of the Chair relating to the
application of the Rules of the House of Representatives to
the procedure relating to a bill under this section shall be
decided without debate.
``(D) Except to the extent specifically provided in the
preceding provisions of this subsection, consideration of a
bill under this section shall be governed by the Rules of the
House of Representatives. It shall not be in order in the
House of Representatives to consider any rescission bill
introduced pursuant to the provisions of this section under a
suspension of the rules or under a special rule.
``(3) A bill transmitted to the Senate pursuant to
paragraph (1)(D) shall be referred to its Committee on
Appropriations. That committee shall report the bill without
substantive revision and with or without recommendation. The
bill shall be reported not later than the seventh legislative
day of the Senate after it receives the bill. A committee
failing to report the bill within such period shall be
automatically discharged from consideration of the bill, and
the bill shall be placed upon the appropriate calendar.
``(4)(A) A motion in the Senate to proceed to the
consideration of a bill under this section shall be
privileged and not debatable. An amendment to the motion
shall not be in order, nor shall it be in order to move to
reconsider the vote by which the motion is agreed to or
disagreed to.
``(B) Debate in the Senate on a bill under this section,
and all debatable motions and appeals in connection therewith
(including debate pursuant to subparagraph (C)), shall not
exceed 10 hours. The time shall be equally divided between,
and controlled by, the majority leader and the minority
leader or their designees.
``(C) Debate in the Senate or any debatable motion or
appeal in connection with a bill under this section shall be
limited to not more than 1 hour, to be equally divided
between, and controlled by, the mover and the manager of the
bill, except that in the event the manager of the bill is in
favor of any such motion or appeal, the time in opposition
thereto, shall be controlled by the minority leader or his
designee. Such leaders, or either of them, may, from time
under their control of the passage of a bill, allot
additional time to any Senator during the consideration of
any debatable motion or appeal.
``(D) A motion in the Senate to further limit debate on a
bill under this section is not debatable. A motion to
recommit a bill under this section is not in order.
``(d) Amendment and Divisions Prohibited.--No amendment to
a bill considered under this section shall be in order in
either the House of Representatives or the Senate. It shall
not be in order to demand a division of the question in the
House of Representatives (or in a Committee of the Whole) or
in the Senate. No motion to suspend the application of this
subsection shall be in order in either House, nor shall it be
in order in either House to suspend the application of this
subsection by unanimous consent.
``(e) Requirement To Make Available for Obligation.--Any
amount of budget authority proposed to be rescinded in a
special message transmitted to Congress under subsection (b)
shall be made available for obligation on the day after the
date on which either House rejects the bill transmitted with
that special message.
``(f) Definitions.--For purposes of this section:
``(1) The term `appropriation Act' means any general or
special appropriation Act, and any Act or joint resolution
making supplemental, deficiency, or continuing
appropriations.
``(2) The term `legislative day' means, with respect to
either House of Congress, any day of session.
``(3) The term `rescind' means, with respect to an
appropriation Act, to reduce the amount of budget authority
appropriated in that Act, and reducing budget authority shall
include reducing obligation limitations set forth in that
Act.''.
(b) Exercise of Rulemaking Powers.--Section 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is
amended--
(1) in subsection (a), by striking ``and 1017'' and
inserting ``1012, and 1017''; and
(2) in subsection (d), by striking ``section 1017'' and
inserting ``sections 1012 and 1017''.
(c) Conforming Amendments.--
(1) Section 1011 of the Congressional Budget Act of 1974 (2
U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5)
and by redesignating paragraph (4) as paragraph (3).
(2) Section 1014 of such Act (2 U.S.C. 685) is amended--
(A) in subsection (b)(1), by striking ``or the
reservation''; and
(B) in subsection (e)(1), by striking ``or a reservation''
and by striking ``or each such reservation''.
(3) Section 1015(a) of such Act (2 U.S.C. 686) is amended
by striking ``is to establish a reserve or'', by striking
``the establishment of such a reserve or'', and by striking
``reserve or'' each other place it appears.
(4) Section 1017 of such Act (2 U.S.C. 687) is amended--
(A) in subsection (a), by striking ``rescission bill
introduced with respect to a special message or'';
(B) in subsection (b)(1), by striking ``rescission bill
or'', by striking ``bill or'' the second place it appears, by
striking ``rescission bill with respect to the same special
message or'', and by striking ``, and the case may be,'';
(C) in subsection (b)(2), by striking ``bill or'' each
place it appears;
(D) in subsection (c), by striking ``rescission'' each
place it appears and by striking ``bill or'' each place it
appears;
(E) in subsection (d)(1), by striking ``rescission bill
or'' and by striking ``, and all amendments thereto (in the
case of a rescission bill)'';
(F) in subsection (d)(2)--
(i) by striking the first sentence;
(ii) by amending the second sentence to read as follows:
``Debate on any debatable motion or appeal in connection with
an impoundment resolution shall be limited to 1 hour, to be
equally divided between, and controlled by, the mover and the
manager of the resolution, except that in the event that the
manager of the resolution is in favor of any such motion or
appeal, the time in opposition thereto shall be controlled by
the minority leader or his designee.'';
(iii) by striking the third sentence; and
(iv) in the fourth sentence, by striking ``rescission bill
or'' and by striking ``amendment, debatable motion,'' and by
inserting `debatable motion';
(G) in paragraph (d)(3), by striking the second and third
sentences; and
(H) by striking paragraphs (4), (5), (6), and (7) of
paragraph (d).
(d) Clerical Amendments.--The table of sections for subpart
B of title X of the Congressional Budget and Impoundment
Control Act of 1974 is amended by redesignating the item
relating to sections 1014 through 1018 as items 1015 through
1019, respectively, and by inserting after the item relating
to section 1012 the following new item:
``Sec. 1013. Enhanced consideration of certain proposed rescissions.''.
Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse
SEC. 331. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established the Commission to
Eliminate Waste, Fraud, and Abuse (hereafter in this subtitle
referred to as the ``Commission'').
[[Page H5030]]
(b) Membership.--
(1) In general.--The Commission shall consist of 12
members, all of whom shall be appointed by the President not
later than 90 days after the date of enactment of this Act.
(2) Chairperson and vice chairperson.--The President shall
designate a chairperson and vice chairperson from among the
members of the Commission.
(c) Period of Appointment; Vacancies.--Members shall be
appointed for the life of the Commission. Any vacancy in the
Commission shall not affect its powers, but shall be filled
in the same manner as the original appointment.
(d) Meetings.--
(1) Initial meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed,
the Commission shall hold its first meeting.
(2) Subsequent meetings.--The Commission shall meet at the
call of the chairperson.
(e) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
SEC. 332. DUTIES OF THE COMMISSION.
(a) Definitions.--In this section, the following
definitions shall apply:
(1) Agency.--The term ``agency'' has the meaning given the
term ``Executive agency'' under section 105 of title 5,
United States Code.
(2) Program.--The term ``program'' means any activity or
function of an agency.
(b) In General.--The Commission shall--
(1) evaluate all agencies and programs within those
agencies, using the criteria under subsection (c); and
(2) submit to Congress--
(A) a plan with recommendations of the agencies and
programs that should be realigned or eliminated; and
(B) proposed legislation to implement the plan described
under subparagraph (A).
(c) Criteria.--
(1) Duplicative.--If 2 or more agencies or programs are
performing the same essential function and the function can
be consolidated or streamlined into a single agency or
program, the Commission shall recommend that the agency or
program be realigned.
(2) Wasteful or inefficient.--The Commission shall
recommend the realignment or elimination of any agency or
program that has wasted Federal funds by--
(A) egregious spending;
(B) mismanagement of resources and personnel; or
(C) use of such funds for personal benefit or the benefit
of a special interest group.
(3) Outdated, irrelevant, or failed.--The Commission shall
recommend the elimination of any agency or program that--
(A) has completed its intended purpose;
(B) has become irrelevant; or
(C) has failed to meet its objectives.
(d) Systematic Assessment of Programs.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the President shall--
(A) establish a systematic method for assessing the
effectiveness and accountability of agency programs; and
(B) submit, to the Commission, assessments of not less than
\1/2\ of all programs covered under subsection (b)(1) that
use the method established under subparagraph (A).
(2) Method objectives.--The method established under
paragraph (1) shall--
(A) recognize different types of federal programs;
(B) assess programs based primarily on the achievement of
performance goals (as defined under section 1115(f)(4) of
title 31, United States Code); and
(C) assess programs based in part on the adequacy of the
program's performance measures, financial management, and
other factors determined by the President.
(3) Development.--The method established under paragraph
(1) shall not be implemented until it has been reviewed and
accepted by the Commission.
(4) Consideration of assessments.--The Commission shall
consider assessments submitted under this subsection when
evaluating programs under subsection (b)(1).
(e) Common Performance Measures.--Not later than 1 year
after the date of enactment of this Act, the President shall
identify common performance measures for programs covered in
subsection (b)(1) that have similar functions and, to the
extent feasible, provide the Commission with data on such
performance measures.
(f) Report.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Commission shall submit to the
President and Congress a report that includes--
(A) the plan described under subsection (b)(2)(A), with
supporting documentation for all recommendations; and
(B) the proposed legislation described under subsection
(b)(2)(B).
(2) Relocation of federal employees.--The proposed
legislation under paragraph (1)(B) shall provide that if the
position of an employee of an agency is eliminated as a
result of the implementation of the plan under paragraph
(1)(A), the affected agency shall make reasonable efforts to
relocate such employee to another position within the agency
or within another Federal agency.
SEC. 333. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission or, at its direction, any
subcommittee or member of the Commission, may, for the
purpose of carrying out this subtitle--
(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and
administer such oaths as any member of the Commission
considers advisable;
(2) require, by subpoena or otherwise, the attendance and
testimony of such witnesses as any member of the Commission
considers advisable; and
(3) require, by subpoena or otherwise, the production of
such books, records, correspondence, memoranda, papers,
documents, tapes, and other evidentiary materials relating to
any matter under investigation by the Commission.
(b) Subpoenas.--
(1) Issuance.--Subpoenas issued under subsection (a) shall
bear the signature of the chairperson of the Commission and
shall be served by any person or class of persons designated
by the chairperson for that purpose.
(2) Enforcement.--In the case of contumacy or failure to
obey a subpoena issued under subsection (a), the United
States district court for the judicial district in which the
subpoenaed person resides, is served, or may be found, may
issue an order requiring such person to appear at any
designated place to testify or to produce documentary or
other evidence. Any failure to obey the order of the court
may be punished by the court as a contempt of that court.
(c) Information From Federal Agencies.--The Commission may
secure directly from any Federal department or agency such
information as the Commission considers necessary to carry
out this Act. Upon request of the chairperson of the
Commission, the head of such department or agency shall
furnish such information to the Commission.
(d) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Government.
(e) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
SEC. 334. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--
(1) Non-federal members.--Except as provided under
subsection (b), each member of the Commission who is not an
officer or employee of the Government shall not be
compensated.
(2) Federal officers or employees.--All members of the
Commission who are officers or employees of the United States
shall serve without compensation in addition to that received
for their services as officers or employees of the United
States.
(b) Travel Expenses.--The members of the Commission shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the Commission.
(c) Staff.--
(1) In general.--The chairperson of the Commission may,
without regard to the civil service laws and regulations,
appoint and terminate an executive director and such other
additional personnel as may be necessary to enable the
Commission to perform its duties. The employment of an
executive director shall be subject to confirmation by the
Commission.
(2) Compensation.--Upon the approval of the chairperson,
the executive director may fix the compensation of the
executive director and other personnel without regard to
chapter 51 and subchapter III of chapter 53 of title 5,
United States Code, relating to classification of positions
and General Schedule pay rates, except that the rate of pay
for the executive director and other personnel may not exceed
the maximum rate payable for a position at GS-15 of the
General Schedule under section 5332 of such title.
(3) Personnel as federal employees.--
(A) In general.--The executive director and any personnel
of the Commission who are employees shall be employees under
section 2105 of title 5, United States Code, for purposes of
chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.
(B) Members of commission.--Subparagraph (A) shall not be
construed to apply to members of the Commission.
(d) Detail of Government Employees.--Any Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption
or loss of civil service status or privilege.
(e) Procurement of Temporary and Intermittent Services.--
The chairperson of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under
section 5316 of such title.
SEC. 335. TERMINATION OF THE COMMISSION.
The Commission shall terminate 90 days after the date on
which the Commission submits the report under section 232(f).
SEC. 336. CONGRESSIONAL CONSIDERATION OF REFORM PROPOSALS.
(a) Definitions.--In this section:
(1) Implementation bill.--The term ``implementation bill''
means only a bill which is introduced as provided under
subsection (b), and contains the proposed legislation
included in the report submitted to Congress under section
232, without modification.
(2) Calendar day.--The term ``calendar day'' means a
calendar day other than 1 on
[[Page H5031]]
which either House is not in session because of an
adjournment of more than 3 days to a date certain.
(b) Introduction; Referral; and Report or Discharge.--
(1) Introduction.--On the first calendar day on which both
Houses are in session, on or immediately following the date
on which the report is submitted to Congress under section
232, a single implementation bill shall be introduced (by
request)--
(A) in the Senate by the Majority Leader of the Senate, for
himself and the Minority Leader of the Senate, or by Members
of the Senate designated by the Majority Leader and Minority
Leader of the Senate; and
(B) in the House of Representatives by the Speaker of the
House of Representatives, for himself and the Minority Leader
of the House of Representatives, or by Members of the House
of Representatives designated by the Speaker and Minority
Leader of the House of Representatives.
(2) Referral.--The implementation bills introduced under
paragraph (1) shall be referred to any appropriate committee
of jurisdiction in the Senate and any appropriate committee
of jurisdiction in the House of Representatives. A committee
to which an implementation bill is referred under this
paragraph may report such bill to the respective House
without amendment.
(3) Report or discharge.--If a committee to which an
implementation bill is referred has not reported such bill by
the end of the 15th calendar day after the date of the
introduction of such bill, such committee shall be
immediately discharged from further consideration of such
bill, and upon being reported or discharged from the
committee, such bill shall be placed on the appropriate
calendar.
(c) Floor Consideration.--
(1) In general.--When the committee to which an
implementation bill is referred has reported, or has been
discharged under subsection (b)(3), it is at any time
thereafter in order (even though a previous motion to the
same effect has been disagreed to) for any Member of the
respective House to move to proceed to the consideration of
the implementation bill, and all points of order against the
implementation bill (and against consideration of the
implementation bill) are waived. The motion is highly
privileged in the House of Representatives and is privileged
in the Senate and is not debatable. The motion is not subject
to amendment, or to a motion to postpone, or to a motion to
proceed to the consideration of other business. 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 implementation bill is agreed to,
the implementation bill shall remain the unfinished business
of the respective House until disposed of.
(2) Amendments.--An implementation bill may not be amended
in the Senate or the House of Representatives.
(3) Debate.--Debate on the implementation bill, 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 those favoring and those opposing the
resolution. 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 implementation bill is not in order.
A motion to reconsider the vote by which the implementation
bill is agreed to or disagreed to is not in order.
(4) Vote on final passage.--Immediately following the
conclusion of the debate on an implementation bill, and a
single quorum call at the conclusion of the debate if
requested in accordance with the rules of the appropriate
House, the vote on final passage of the implementation bill
shall occur.
(5) Rulings of the chair on procedure.--Appeals from the
decisions of the Chair relating to the application of the
rules of the Senate or the House of Representatives, as the
case may be, to the procedure relating to an implementation
bill shall be decided without debate.
(d) Coordination With Action by Other House.--If, before
the passage by 1 House of an implementation bill of that
House, that House receives from the other House an
implementation bill, then the following procedures shall
apply:
(1) Nonreferral.--The implementation bill of the other
House shall not be referred to a committee.
(2) Vote on bill of other house.--With respect to an
implementation bill of the House receiving the implementation
bill--
(A) the procedure in that House shall be the same as if no
implementation bill had been received from the other House;
but
(B) the vote on final passage shall be on the
implementation bill of the other House.
(e) Rules of Senate and House of Representatives.--This
section is 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 an implementation bill described
in subsection (a), 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.
SEC. 337. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary for carrying out this subtitle for each of the
fiscal years 2006 through 2008.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
SEC. 401. CIVIL SERVICE RETIREMENT SYSTEM.
(a) Civil Service Retirement and Disability Fund.--Chapter
83 of title 5, United States Code, is amended--
(1) in section 8331--
(A) in paragraph (17)--
(i) by striking ``normal cost'' and inserting ``normal cost
percentage''; and
(ii) by inserting ``and standards (using dynamic
assumptions)'' after ``practice'';
(B) by amending paragraph (18) to read as follows:
``(18) `Fund balance' means the current net assets of the
Fund available for payment of benefits, as determined by the
Office in accordance with appropriate accounting standards,
but does not include any amount attributable to--
``(A) the Federal Employees' Retirement System; or
``(B) contributions made under the Federal Employees'
Retirement Contribution Temporary Adjustment Act of 1983 by
or on behalf of any individual who became subject to the
Federal Employees' Retirement System;''
(C) by amending paragraph (19) to read as follows:
``(19) `accrued liability' means the estimated excess of
the present value of all benefits payable from the Fund to
employees and Members, and former employees and Members,
subject to this subchapter, and their survivors, over the
present value of deductions to be withheld from the future
basic pay of employees and Members currently subject to this
subchapter and of future agency contributions to be made in
their behalf;''
(D) in paragraph (27) by striking ``and'' at the end;
(E) in paragraph (28) by striking the period at the end and
inserting a semicolon; and
(F) by adding at the end the following paragraphs:
``(29) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities
of a retirement system and in anticipating the effects of
long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation; and
``(30) `unfunded liability' means the estimated excess of--
``(A) the actuarial present value of all future benefits
payable from the Fund under this subchapter based on the
service of current or former employees or Members, over
``(B) the sum of--
``(i) the actuarial present value of deductions to be
withheld from the future basic pay of employees and Members
currently subject to this chapter pursuant to section 8334;
``(ii) the actuarial present value of the future
contributions to be made pursuant to section 8334 with
respect to employees and Members currently subject to this
subchapter;
``(iii) the Fund balance, as defined in paragraph (18), as
of the date the unfunded liability is determined; and
``(iv) any other appropriate amount, as determined by the
Office of Personnel Management in accordance with generally
accepted actuarial practices and principles.'';
(2) in section 8334--
(A) in subsection (a)(1)--
(i) by striking the last two sentences;
(ii) by redesignating that subsection, as so amended, as
(a)(1)(A); and
(iii) by adding at the end the following new subparagraphs:
``(B) Except as provided in subparagraph (E), each
employing agency having any employees or Members subject to
subparagraph (A) shall contribute from amounts available for
salaries and expenses an amount equal to the sum of--
``(i) the product of--
``(I) the normal cost percentage, as determined for
employees (other than employees covered by clause (ii)),
multiplied by
``(II) the aggregate amount of basic pay payable by the
agency, for the period involved, to employees (under
subclause (I)) who are within such agency; and
``(ii) the product of--
``(I) the normal cost percentage, as determined for
Members, Congressional employees, law enforcement officers,
firefighters, air traffic controllers, bankruptcy judges,
Court of Federal Claims judges, United States magistrates,
judges of the United States Court of Appeals for the Armed
Forces, members of the Capitol Police, nuclear materials
couriers, and members of the Supreme Court Police, multiplied
by
``(II) the aggregate amount of basic pay payable by the
agency for the period involved, to employees and Members
(under subclause (I)) who are within such agency.
``(C) In determining the normal cost percentage to be
applied under subparagraph (B), amounts provided for under
subparagraph (A) shall be taken into account.
``(D) Contributions under this paragraph shall be paid--
[[Page H5032]]
``(i) in the case of law enforcement officers,
firefighters, air traffic controllers, bankruptcy judges,
Court of Federal Claims judges, United States magistrates,
judges of the United States Court of Appeals for the Armed
Forces, members of the Supreme Court Police, nuclear
materials couriers and other employees, from the
appropriations or fund used to pay such law enforcement
officers, firefighters, air traffic controllers, bankruptcy
judges, Court of Federal Claims judges, United States
magistrates, judges of the United States Court of Appeals for
the Armed Forces, members of the Supreme Court Police,
nuclear materials couriers and other employees, respectively;
``(ii) in the case of elected officials, from an
appropriation or fund available for payment of other salaries
of the same office or establishment; and
``(iii) in the case of employees of the legislative branch
paid by the Clerk of the House of Representatives, from the
contingent fund of the House.
``(E) In the case of the United States Postal Service, the
Metropolitan Washington Airports Authority, and the
government of the District of Columbia, an amount equal to
that withheld under subparagraph (A) shall be contributed
from the appropriation or fund used to pay the employee.'';
and
(B) in subsection (k)--
(i) in paragraph (1)--
(I) in subparagraph (A) by striking ``the first sentence of
subsection (a)(1) of this section'' and inserting
``subsection (a)(1)(A)''; and
(II) by amending subparagraph (B) to read as follows:
``(B) the amount of the contribution under subsection
(a)(1)(B) shall be the amount which would have been
contributed under such subsection if this subsection had not
been enacted.''; and
(ii) in paragraph (2)(C)(iii) by striking ``the first
sentence of subsection (a)(1)'' and inserting ``subsection
(a)(1)(A)''; and
(3) in section 8348--
(A) by repealing subsection (f);
(B) by amending subsection (g) to read as follows:
``(g)(1)(A) Not later than June 30, 2005, the Office of the
Actuary shall determine the unfunded liability of the Fund,
as of September 30, 2004, attributable to benefits payable
under this chapter and make recommendations regarding its
liquidation. After considering such recommendations, the
Office shall establish an amortization schedule, including a
series of annual installments commencing October 1, 2005,
which provides for the liquidation of such liability by
October 1, 2044.
``(B) The Office shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each
fiscal year beginning after September 30, 2004, through the
fiscal year ending September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(C) The Office shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each
fiscal year beginning after September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability over five years.
``(D) Amortization schedules established under this
paragraph shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Civil
Service Retirement System.
``(2) At the beginning of each fiscal year, beginning on
October 1, 2005, the Office shall notify the Secretary of the
Treasury of the amount of the first installment under the
most recent amortization schedule established under paragraph
(1). The Secretary shall credit that amount to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.
``(3) For the purpose of carrying out paragraph (1) with
respect to any fiscal year, the Office may--
``(A) require the Board of Actuaries of the Civil Service
Retirement System to make actuarial determinations and
valuations, make recommendations, and maintain records in
accordance with section 8347(f); and
``(B) use the latest actuarial determinations and
valuations made by such Board of Actuaries.'';
(C) in subsections (h), (i), and (m) by striking
``unfunded'' and inserting ``accrued'' each place it appears;
and
(D) by adding at the end the following new subsection:
``(n) Under regulations prescribed by the Office, the head
of an agency may request reconsideration of any amount
determined to be payable with respect to such agency under
section 8334(a)(1)(B)-(D). Any such request shall be referred
to the Board of Actuaries of the Civil Service Retirement
System. The Board of Actuaries shall review the computations
of the Office and may make any adjustment with respect to any
such amount which the Board determines appropriate. A
determination by the Board of Actuaries under this subsection
shall be final.''.
(b) Government Contributions.--Section 8423 of title 5,
United States Code, is amended--
(1) in subsection (a)(2) by striking ``section 8422'' and
inserting ``section 8422(a)''; and
(2) in subsection (b)(2) by striking ``equal annual
installments'' and inserting ``annual installments set in
accordance with generally accepted actuarial practices and
principles''.
SEC. 402. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM.
(a) Section 101 of the Central Intelligence Agency
Retirement Act (50 U.S.C. 2001) is amended--
(1) in paragraph (5), to read as follows:
``(5) Unfunded liability.--The term `unfunded liability'
means the estimated excess of--
``(A) the actuarial present value of all future benefits
payable from the Fund under title II of this Act based on the
service of current or former participants, over
``(B) the sum of--
``(i) the actuarial present value of deductions to be
withheld from the future basic pay of participants currently
subject to title II of this Act pursuant to section 211;
``(ii) the actuarial present value of the future
contributions to be made pursuant to section 211 with respect
to participants currently subject to title II of this Act;
``(iii) the Fund balance, as defined in paragraph (4), as
of the date the unfunded liability is determined; and
``(iv) any other appropriate amount, as determined by the
Director in accordance with generally accepted actuarial
practices and principles.'';
(2) in paragraph (6)--
(A) by striking `` `normal cost' '' and inserting ``
`normal cost percentage' ''; and
(B) by inserting ``and standards (using dynamic
assumptions)'' after ``practice''; and
(3) by adding at the end the following paragraph:
``(10) Dynamic assumptions.--The term `dynamic assumptions'
means economic assumptions that are used in determining
actuarial costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(b) Section 202 of such Act (50 U.S.C. 2012) is amended by
adding at the end the following: ``The Fund is appropriated
for the payment of benefits as provided by this title.''.
(c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is
amended to read as follows:
``(2) Agency contributions.--The Agency shall contribute to
the Fund the amount computed in a manner similar to that used
under section 8334(a) of title 5, United States Code,
pursuant to determinations of the normal cost percentage of
the Central Intelligence Agency Retirement and Disability
System by the Director. Contributions under this paragraph
shall be paid from amounts available for salaries and
expenses.''; and
(d) Section 261 of such Act (50 U.S.C. 2091) is amended--
(1) by striking subsections (c), (d), and (e); and
(2) by inserting after subsection (b) the following new
subsections:
``(c)(1) Not later than June 30, 2005, the Director shall
cause to be made actuarial valuations of the Fund that
determine the unfunded liability of the Fund, as of September
30, 2004, attributable to benefits payable under this title
and make recommendations regarding its liquidation. After
considering such recommendations, the Director shall
establish an amortization schedule, including a series of
annual installments commencing October 1, 2005, which
provides for the liquidation of such liability by October 1,
2044.
``(2) The Director shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each
fiscal year beginning after September 30, 2004, through the
fiscal year ending September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Director shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each
fiscal year beginning after September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability over five years.
``(4) Amortization schedules established under this
subsection shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Civil
Service Retirement and Disability System.
``(d) At the beginning of each fiscal year, beginning on
October 1, 2005, the Director shall notify the Secretary of
the Treasury of the amount of the first installment under the
most recent amortization schedule established under
subsection (c). The Secretary shall credit that amount to the
Fund, as a Government contribution, out of any money in the
Treasury of the United States not otherwise appropriated. For
the purposes of Section 504 of the National Security Act of
1947, this amount shall be considered authorized.''.
(e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is
amended by adding at the end the following new section:
``SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EMPLOYEES
DESIGNATED UNDER SECTION 302.
``(a) In addition to other government contributions
required by law, the Agency shall
[[Page H5033]]
contribute to the Civil Service Retirement and Disability
fund (hereinafter in this section referred to as the `Fund')
amounts calculated in accordance with section 8423 of title
5, United States Code, based on the projected number of
employees to be designated pursuant to section 302 of this
Act. In addition, the Agency, in a manner similar to that
established for employee contributions to the Fund by section
8422 of title 5, United States Code, will contribute an
amount equal to the difference between that which would be
contributed by the number of employees projected to be
designated under section 302 and the amounts that are
actually being deducted and contributed from the basic pay of
an equal number of employees pursuant to section 8422. The
amounts of the Agency's contributions under this subsection
shall be determined by the Director of the Office of
Personnel Management, in consultation with the Director, and
shall be paid by the Agency from funds available for salaries
and expenses. Agency employees designated pursuant to section
302 of this Act shall, commencing with such designation, have
deducted from their basic pay the full amount required by
section 8422 of title 5, United States Code, and such
deductions shall be contributed to the Fund.
``(b)(1) The Director of the Office of Personnel
Management, in consultation with the Director, shall
determine the total amount of unpaid contributions
(government and employee contributions) and interest
attributable to the number of individuals employed with the
Agency on September 30, 2005, who are projected to be
designated under section 302 of this Act, but are not yet
designated under that section as of that date. The amount
shall be referred to as the section 302 unfunded liability.
``(2) Not later than June 30, 2006, the Director of the
Office of Personnel Management, in consultation with the
Director, shall establish an amortization schedule, setting
forth a series of annual installments commencing September
30, 2006, which provides for the liquidation of the section
302 unfunded liability by September 30, 2013.
``(3) At the end of each fiscal year, beginning on
September 30, 2006, the Director shall notify the Secretary
of the Treasury of the amount of the annual installment under
the amortization schedule established under paragraph (2) of
this subsection. Before closing the accounts for that fiscal
year, the Secretary shall credit that amount to the Fund, out
of any money in the Treasury of the United States not
otherwise appropriated.
``(c) Amounts paid by the Agency pursuant to this section
are deemed to be specifically authorized by the Congress for
the purposes of section 504 of the National Security Act of
1947.''.
(2) The table of contents of such Act is amended by
inserting after the item relating to section 307 the
following new item:
``Sec. 308. Full funding of retiree costs for employees designated
under section 302.''.
SEC. 403. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.
(a) Chapter 8 of Title I of the Foreign Service Act of
1980, Public Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat.
2071, as amended, is further amended in section 804 (22
U.S.C. 4044)--
(1) by amending paragraph (5) to read as follows:
``(5) `normal cost percentage' means the entry-age normal
cost computed in accordance with generally accepted actuarial
practice and standards (using dynamic assumptions) and
expressed as a level percentage of aggregate basic pay;'';
(2) by amending paragraph (14) to read as follows:
``(14) `unfunded liability' means the estimated excess of--
``(A) the actuarial present value of all future benefits
payable from the Fund under this part based on the service of
current or former participants, over
``(B) the sum of--
``(i) the actuarial present value of deductions to be
withheld from the future basic pay of participants currently
subject to this part pursuant to section 805;
``(ii) the actuarial present value of the future
contributions to be made pursuant to section 805 with respect
to participants currently subject to this part;
``(iii) the Fund balance, as defined in paragraph (7), as
of the date the unfunded liability is determined, excluding
any amount attributable to the Foreign Service Pension
System, or contributions made under the Federal Employees'
Retirement Contribution Temporary Adjustment Act of 1983 by
or on behalf of any individual who became subject to the
Foreign Service Pension System; and
``(iv) any other appropriate amount, as determined by the
Secretary of the Treasury in accordance with generally
accepted actuarial practices and principles.''; and
(3)(A) by striking the period at the end of paragraph (15)
and inserting ``; and''; and
(B) by adding at the end the following new paragraph:
``(16) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities
of a retirement system and in anticipating the effects of
long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(b) in section 852 (22 U.S.C. 4071a)--
(1) in paragraph (4)--
(A) by striking ``normal cost'' and inserting ``normal cost
percentage''; and
(B) by striking ``by the Secretary of State'';
(2) in paragraph (7)--
(A) by striking ``supplemental'' and inserting
``unfunded'';
(B) in subparagraph (B)(i) by striking ``(I)'' and ``and
(II) contributions for past civilian and military service'';
and
(C) in subparagraph (B)(ii) by inserting before the
semicolon ``with respect to participants currently subject to
this part''; and
(3)(A) at the end of paragraph (8) by striking ``and'';
(B) at the end of paragraph (9) by striking the period and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(10) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities
of a retirement system and in anticipating the effects of
long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))--
(1) by striking the second sentence;
(2) (by redesignating that subsection, as so amended, as
(a)(1)(A);
(3) by redesignating the last sentence of that subsection,
as so amended as (a)(1)(C);
(4) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Each employing agency having participants shall
contribute to the Fund the amount computed in a manner
similar to that used under section 8334(a) of title 5, United
States Code, pursuant to determinations of the normal cost
percentage of the Foreign Service Retirement and Disability
System. Contributions under this subparagraph shall be paid
from the appropriations or fund used for payment of the
salary of the participant.'';
(5) in subsection (a)(2)(A) by striking ``An equal amount
shall be contributed by the Department'' and inserting in its
place ``Each employing agency having participants shall
contribute to the Fund the amount computed in a manner
similar to that used under section 8334(a) of title 5, United
States Code, pursuant to determinations of the normal cost
percentage of the Foreign Service Retirement and Disability
System''; and
(6) in subsection (a)(2)(B) by striking ``An equal amount
shall be contributed by the Department'' and inserting in its
place ``Each employing agency having participants shall
contribute to the Fund from amounts available for salaries
and expenses the amount computed in a manner similar to that
used under section 8334(a) of title 5, United States Code,
pursuant to determinations of the normal cost percentage of
the Foreign Service Retirement and Disability System'';
(d) by repealing sections 821 and 822 (22 U.S.C. 4061 and
4062) and by adding the following new section:
``Sec. 821. Unfunded Liability.--(a)(1) Not later than June
30, 2005, the Secretary of State shall cause to be made
actuarial valuations of the Fund that determine the unfunded
liability of the Fund, as of September 30, 2004, attributable
to benefits payable under this subchapter and make
recommendations regarding its liquidation. After considering
such recommendations, the Secretary of State shall establish
an amortization schedule, including a series of annual
installments commencing October 1, 2004, which provides for
the liquidation of such liability by October 1, 2044.
``(2) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each fiscal year beginning after September 30, 2004, through
the fiscal year ending September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability by October 1, 2044.
``(3) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and
shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the
second subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(4) Amortization schedules established under this
subsection shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Foreign
Service Retirement and Disability System.
``(b) At the beginning of each fiscal year, beginning on
October 1, 2005, the Secretary of State shall notify the
Secretary of the Treasury of the amount of the first
installment under the most recent amortization schedule
established under paragraph (1). The Secretary of the
Treasury shall credit that amount to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.'';
(e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by
striking ``equal annual installments'' and inserting ``annual
installments set in accordance with generally accepted
actuarial practices and principles'';
(f) in section 859 (22 U.S.C. 4071h) by adding
``percentage'' after ``normal cost'';
(g) in section 802 (22 U.S.C. 4042) by adding at the end
the following: ``The Fund is appropriated for the payment of
benefits as provided by this subchapter.''; and
[[Page H5034]]
(h) in section 818 (22 U.S.C. 4058) by striking ``System''
and inserting ``Systems under this subchapter''.
SEC. 404. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT
SYSTEM.
(a) In General.--Title II of the Public Health Service Act
(42 U.S.C. 202 et seq.) is amended by adding at the end the
following new part:
``PART C--PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM
``ESTABLISHMENT AND PURPOSE OF FUND
``Sec. 251. There is established on the books of the
Treasury a fund to be known as the Public Health Service
Commissioned Corps Retirement Fund (hereinafter in this part
referred to as the `Fund'), which shall be administered by
the Secretary. The Fund shall be used for the accumulation of
funds in order to finance on an actuarially sound basis
liabilities of the Department of Health and Human Services
for benefits payable on account of retirement, disability, or
death to commissioned officers of the Public Health Service
and to their survivors pursuant to part A of this title.
``ASSETS OF THE FUND
``Sec. 252. There shall be deposited into the Fund the
following, which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 255.
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
404(c) of the Family Budget Protection Act of 2004.
``PAYMENT FROM THE FUND
``Sec. 253. There shall be paid from the Fund benefits
payable on account of retirement, disability, or death to
commissioned officers of the Public Health Service and to
their survivors pursuant to part A of this title.
``DETERMINATION OF CONTRIBUTIONS TO THE FUND
``Sec. 254. (a)(1) Not later than June 30, 2005, the
Secretary shall determine the unfunded liability of the Fund
attributable to service performed as of September 30, 2004,
which is `active service' for the purpose of section 212. The
Secretary shall establish an amortization schedule, including
a series of annual installments commencing October 1, 2005,
which provides for the liquidation of such liability by
October 1, 2044.
``(2) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each fiscal year beginning after September 30, 2004, through
the fiscal year ending September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and
shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the
second subsequent fiscal year, which provides for the
liquidation of such liability over 5 years.
``(b) The Secretary shall determine each fiscal year, in
sufficient time for inclusion in the budget request for the
following fiscal year, the total amount of Department of
Health and Human Services contributions to be made to the
Fund during the fiscal year under section 255(a). That amount
shall be the sum of--
``(1) the product of--
``(A) the current estimate of the value of the single level
percentage of basic pay to be determined under subsection
(c)(1) at the time of the most recent actuarial valuation
under subsection (c); and
``(B) the total amount of basic pay expected to be paid
during that fiscal year to commissioned officers of the
Public Health Service on active duty (other than active duty
for training); and
``(2) the product of--
``(A) the current estimate of the value of the single level
percentage of basic pay and of compensation (paid pursuant to
section 206 of title 37, United States Code) to be determined
under subsection (c)(2) at the time of the most recent
actuarial valuation under subsection (c); and
``(B) the total amount of basic pay and of compensation
(paid pursuant to section 206 of title 37, United States
Code) expected to be paid during the fiscal year to
commissioned officers of the Reserve Corps of the Public
Health Service (other than officers on full-time duty other
than for training) who are not otherwise described in
subparagraph (A).
``(c) Not less often than every four years thereafter (or
by the fiscal year end prior to the effective date of any
statutory change affecting benefits payable on account of
retirement, disability, or death to commissioned officers or
their survivors), the Secretary shall carry out an actuarial
valuation of benefits payable on account of retirement,
disability, or death to commissioned officers of the Public
Health Service and to their survivors pursuant to part A of
this title. Each such actuarial valuation shall be signed by
an enrolled Actuary and shall include--
``(1) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
commissioned officers of the Public Health Service on active
duty (other than active duty for training); and
``(2) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) of commissioned officers of the Reserve
Corps of the Public Health Service (other than officers on
full time duty other than for training) who are not otherwise
described in paragraph (1).
``(d) All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(e) The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status
of the Fund.
``PAYMENTS INTO THE FUND
``Sec. 255. (a) From amounts available to the Department of
Health and Human Services for salaries and expenses, the
Secretary shall pay into the Fund at the end of each month
the amount that is the sum of--
``(1) the product of--
``(A) the level percentage of basic pay determined using
all the methods and assumptions approved for the most recent
(as of the first day of the current fiscal year) actuarial
valuation under sections 254(c)(1) (except that any statutory
change affecting benefits payable on account of retirement,
disability, or death to commissioned officers or their
survivors that is effective after the date of that valuation
and on or before the first day of the current fiscal year
shall be used in such determination); and
``(B) the total amount of basic pay accrued for that month
by commissioned officers of the Public Health Service on
active duty (other than active duty for training); and
``(2) the product of--
``(A) the level percentage of basic pay and of compensation
(paid pursuant to section 206 of title 37, United States
Code) determined using all the methods and assumptions
approved for the most recent (as of the first day of the
current fiscal year) actuarial valuation under section
254(c)(2) (except that any statutory change affecting
benefits payable on account of retirement, disability, or
death to commissioned officers or their survivors that is
effective after the date of that valuation and on or before
the first day of the current fiscal year shall be used in
such determinations); and
``(B) the total amount of basic pay and of compensation
(paid pursuant to section 206 of title 37, United States
Code) accrued for that month by commissioned officers of the
Reserve Corps of the Public Health Service (other than
officers on full-time duty other than for training).
``(b) At the beginning of each fiscal year, beginning on
October 1, 2005, the Secretary shall certify to the Secretary
of the Treasury the amount of the first installment under the
most recent amortization schedule established under section
254(a). The Secretary of the Treasury shall pay into the Fund
from the General Fund of the Treasury the amount so
certified. Such payment shall be the contribution to the Fund
for that fiscal year.
``INVESTMENTS OF ASSETS OF FUND
``Sec. 256. The Secretary may request the Secretary of the
Treasury to invest such portion of the Fund as is not, in the
judgment of the Secretary, required to meet the current needs
of the Fund. Such investments shall be made by the Secretary
of the Treasury in public debt securities with maturities
suitable to the needs of the Fund, as determined by the
Secretary, and bearing interest at rates determined by the
Secretary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the
United States of comparable maturities. The income on such
investments shall be credited to and form a part of the Fund.
``IMPLEMENTATION YEAR EXCEPTIONS
``Sec. 257. (a) To avoid funding shortfalls in the first
year should formal actuarial determinations not be available
in time for budget preparation, the amounts used in the first
year in sections 255(a)(1)(A) and 255(a)(2)(A) shall be set
equal to those estimates in sections 254(b)(1)(A) and
254(b)(2)(A) if final determinations are not available. The
original unfunded liability as defined in section 254(a)
shall include an adjustment to correct for this difference
between the formal actuarial determinations and the estimates
in sections 254(b)(1)(A) and 254(b)(2)(A).''.
(b) Conforming Amendments.--
(1) Condition of detail.--Section 214 of the Public Health
Service Act (42 U.S.C. 215) is amended by adding at the end
the following new subsection:
``(e) The Secretary shall condition any detail under
subsection (a), (b), or (c) upon the agreement of the
executive department, State, subdivision, Committee of the
Congress, or institution concerned to pay to the Department
of Health and Human Services, in advance or by way of
reimbursement, for the full cost of the detail including that
portion of the contributions under section 255(a) that is
attributable to the detailed personnel.''.
(2) Sequestration rule.--Section 256(f) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
906(f)) is amended--
(A) by inserting after the item relating to ``payment to
the foreign service retirement
[[Page H5035]]
and disability fund'' the following item: ``Payment to the
Public Health Service Commissioned Corps Retirement Fund (75-
0380-0-1-551);''; and
(B) by inserting after the item relating to the ``Pensions
for former Presidents'' the following item: ``Public Health
Service Commissioned Corps Retirement Fund (75-8274-0-7-
602);''.
(c) Transfer of Appropriations.--There shall be transferred
on October 1, 2006, into the fund established under section
251 of the Public Health Service Act, as added by subsection
(a), any obligated or unobligated balances of appropriations
made to the Department of Health and Human Services that are
currently available for benefits payable on account of
retirement, disability, or death to commissioned officers of
the Public Health Service and to their survivors pursuant to
part A of title II of the Public Health Service Act, and
amounts so transferred shall be part of the assets of the
Fund.
SEC. 405. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION
COMMISSIONED OFFICER CORPS RETIREMENT SYSTEM.
(a) In General.--The National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title
II of Public Law 107-372) is amended by inserting after
section 246 (33 U.S.C. 3046) the following new section:
``Sec. 246A. (a) Establishment and Purpose of NOAA
Commissioned Officer Corps Retirement Fund.--(1) There is
established on the books of the Treasury a fund to be known
as the National Oceanic and Atmospheric Administration
Commissioned Officer Corps Retirement Fund (hereinafter in
this section referred to as the `Fund'), which shall be
administered by the Secretary. The Fund shall be used for the
accumulation of funds in order to finance on an actuarially
sound basis liabilities of the Department of Commerce under
military retirement and survivor benefit programs for the
commissioned officers corps.
``(2) The term `military retirement and survivor benefit
program' means--
``(A) the provisions of this title and title 10, United
States Code, creating entitlement to, or determining, the
amount of retired pay;
``(B) the programs under the jurisdiction of the Department
of Defense providing annuities for survivors and members and
former members of the Armed Forces, including chapter 73 of
title 10, section 4 of Public Law 92-425, and section 5 of
Public Law 96-202, as made applicable to the commissioned
officer corps by section 261.
``(b) Assets of the Fund.--There shall be deposited into
the Fund the following, which shall constitute the assets of
the Fund:
``(1) Amounts paid into the Fund under subsection (e).
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
405(c) of the Family Budget Protection Act of 2004.
``(c) Payments From the Fund.--There shall be paid from the
Fund benefits payable on account of military retirement and
survivor benefit programs to commissioned officers of the
commissioned officer corps and their survivors.
``(d) Determination of Contributions to the Fund.--(1)(A)
Not later than June 30, 2004, the Secretary shall determine
the unfunded liability of the Fund attributable to service
performed as of September 30, 2004, which is `active service'
for the purpose of this title. The Secretary shall establish
an amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for
the liquidation of such liability by October 1, 2044.
``(B) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each fiscal year beginning after September 30, 2004, through
the fiscal year ending September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on September 30 of the
subsequent fiscal year, which provides for the liquidation of
such liability by October 1, 2044.
``(C) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and
shall establish a new authorization schedule, including
series of annual installments commencing on October 1 of the
second subsequent fiscal year, which provides for the
liquidation of such liability over 5 years.
``(2) The Secretary shall determine each fiscal year, in
sufficient time for inclusion in the budget request for the
following fiscal year, the total amount of Department of
Commerce contributions to be made to the Fund during that
fiscal year under (e). The amount shall be the product of--
``(A) the current estimate of the value of the single level
percentage of basic pay to be determined under subsection (e)
at the time of the most recent actuarial valuation under
paragraph (3); and
``(B) the total amount of basic pay expected to be paid
during that fiscal year to commissioned officers of NOAA on
active duty.
``(3) Not less often then every four years (or by the
fiscal year end before the effective date of any statutory
change affecting benefits payable on account of retirement,
disability, or death to commissioned officers or their
survivors), the Secretary shall carry out an actuarial
valuation of benefits payable on account of military
retirement and survivor benefit programs to commissioned
officers of the Administration and to their survivors. Each
such actuarial valuation shall be signed by an enrolled
Actuary and shall include a determination (using the
aggregate entry-age normal cost method) of a single level
percentage of basic pay for commissioned officers on active
duty.
``(4) All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices, and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(5) The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status
of the Fund.
``(e) Payments Into the Fund.--(1) From amounts
appropriated to the National Oceanic Atmospheric
Administration for salaries and expenses, the Secretary shall
pay into the Fund at the end of each month the amount that is
the product of--
``(A) the level percentage of basic pay determined using
all the methods and assumptions approved for the most recent
(as of the first day of the current fiscal year) actuarial
valuation under subsection (d) (except that any statutory
change affecting benefits payable on account of military
retirement and survivor benefit programs to commissioned
officers of the Administration and to their survivors that is
effective date after the date of that valuation and on or
before the first day of the current fiscal year shall be used
in such determination); and
``(B) the total amount of basic pay accrued for that month
by commissioned officers on active duty.
``(2)(A) At the beginning of each fiscal year, the
Secretary shall determine the sum of--
``(i) the amount of the payment for that year under the
amortization of the original unfunded liability of the Fund;
``(ii) the amount (including any negative amount) for that
year under the most recent amortization schedule determined
by the Secretary for the amortization of any cumulative
actuarial gain or loss to the Fund, resulting from changes in
benefits; and
``(iii) the amount (including any negative amount) for that
year under the most recent amortization schedule determined
by the Secretary for the amortization or any cumulative
actuarial gain or loss to the Fund resulting from changes in
actuarial assumptions and from experience different from the
assumed since the last valuation.
The Secretary shall promptly certify the amount of the sum to
the Secretary of the Treasury.
``(B) Upon receiving the certification pursuant to
paragraph (1), the Secretary of the Treasury shall promptly
pay into the Fund from the General Fund of the Treasury the
amount so certified. Such payment shall be the contribution
to the Fund for that fiscal year.
``(f) Investment of Assets of the Fund.--The Secretary may
request the Secretary of the Treasury to invest such portion
of the Fund as is not, in the judgment of the Secretary,
required to meet the current needs of the Fund. Such
investments shall be made by the Secretary of the Treasury in
public debt securities with maturities suitable to the needs
of the Fund, as determined by the Secretary, and bearing
interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of
comparable maturities. The income of such investments shall
be credited to and form a part of the Fund.
``(g) Implementation Year Exceptions.--(1) To avoid funding
shortfalls in the first year should formal actuarial
determinations not be available in time for budget
preparation, the amounts used in the first year in subsection
(e)(1)(A) shall be set equal to the estimate in subsection
(d)(2)(A) if final determinations are not available. The
original unfunded liability as determined in subsection
(d)(1) shall include an adjustment to correct for this
difference between the formal actuarial determinations and
the estimates in subsection (d)(2)(A).''.
(b) Sequestration Rule.--Section 256(f) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
906(f)) is amended by striking ``National Oceanic and
Atmospheric Administration retirement (13-1450-0-1-306);''
and inserting ``National Oceanic and Atmospheric
Administration Commissioned Officer Corps Retirement Fund;''.
(c) Transfer of Appropriations.--There shall be transferred
on October 1, 2006, into the fund established under section
246A(a) of the National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title
II of Public Law 107-372, as added by subsection (a)), any
obligated and unobligated balance of appropriations made to
the Department of Commerce that are available as of the date
of the enactment of this Act for benefits payable on account
of military retirement and survivor benefit programs to
commissioned officers of the NOAA Commissioned Officer Corps
and to their survivors, and amounts so transferred shall be
part of the assets of the Fund, effective October 1, 2006.
(d) Effective Date.--Subsection (c) (relating to payments
from the Fund) and (e) (relating to payments into the Fund)
of section 246A of the National Oceanic and Atmospheric
Administration Commissioned Officer
[[Page H5036]]
Corps Act of 2002 (title II of Public Law 107-372, as added
by subsection (a)), shall take effect on October 1, 2006.
SEC. 406. COAST GUARD MILITARY RETIREMENT SYSTEM.
(a) Accrual Funding for Coast Guard Retirement.--
(1) In general.--Chapter 11 of title 14, United States
Code, is amended by adding at the end the following new
subchapter:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``Sec. 441. Establishment and purpose of Fund; definitions
``(a) Establishment of Fund; Purpose.--There is established
on the books of the Treasury a fund to be known as the Coast
Guard Military Retirement Fund (hereinafter in this
subchapter referred to as the `Fund'), which shall be
administered by the Secretary. The Fund shall be used for the
accumulations of funds in order to finance on an actuarially
sound basis liabilities of the Coast Guard under military
retirement and survivor benefit programs.
``(b) Military Retirement and Survivor Benefit Programs
Defined.--In this subchapter, the term `military retirement
and survivor benefit programs' means--
``(1) the provisions of this title and title 10 creating
entitlement to, or determining the amount of, retired pay;
``(2) the programs providing annuities for survivors of
members and former members of the armed forces, including
chapter 73 of title 10, section 4 of Public Law 92-425, and
section 5 of Public Law 96-402; and
``(3) the authority provided in section 1048(h) of title
10.
``(c) Secretary Defined.--In this subchapter, the term
`Secretary' means the Secretary of Homeland Security when the
Coast Guard is not operating as a service in the Navy and the
Secretary of Defense when the Coast Guard is operating as a
service in the Navy.
``Sec. 442. Assets of the Fund
``There shall be deposited into the Fund the following,
which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 445 of this
title.
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
406(d) of the Family Budget Protection Act of 2004.
``Sec. 443. Payments from the Fund
``(a) In General.--There shall be paid from the Fund the
following:
``(1) Retired pay payable to persons on the retired list of
the Coast Guard.
``(2) Retired pay payable under chapter 1223 of title 10 to
former members of the Coast Guard and the former United
States Lighthouse Service.
``(3) Benefits payable under programs that provide
annuities for survivors of members and former members of the
armed forces, including chapter 73 of title 10, section 4 of
Public Law 92-425, and section 5 of Public Law 96-402.
``(4) Amounts payable under section 1048(h) of title 10.
``(b) Availability of Assets of the Fund.--The assets of
the Fund are hereby made available for payments under
subsection (a).
``Sec. 444. Determination of contributions to the Fund
``(a) Initial Unfunded Liability.--(1) Not later than June
30, 2005, the Secretary shall determine the unfunded
liability of the Fund attributable to service performed as of
September 30, 2004, which is `active service' for the
purposes of section 212. The Secretary shall establish an
amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for
the liquidation of such liability by October 1, 2044.
``(2) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and
shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the
second subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(b) Annual Contributions for Current Services.--(1) The
Secretary shall determine each fiscal year, in sufficient
time for inclusion in the budget request for the following
fiscal year, the total amount of Department of Homeland
Security, or Department of Defense, contributions to be made
to the Fund during that fiscal year under section 445(a) of
this title. That amount shall be the sum of the following:
``(A) The product of--
``(i) the current estimate of the value of the single level
percentage of basic pay to be determined under subsection
(c)(1)(A) at the time of the most recent actuarial valuation
under subsection (c); and
``(ii) the total amount of basic pay expected to be paid
during that fiscal year to members of the Coast Guard on
active duty (other than active duty for training).
``(B) The product of--
``(i) the current estimate of the value of the single level
percentage of basic pay and of compensation (paid pursuant to
section 206 of title 37) to be determined under subsection
(c)(1)(B) at the time of the most recent actuarial valuation
under subsection (c); and
``(ii) the total amount of basic pay and compensation (paid
pursuant to section 206 of title 37) expected to be paid
during that fiscal year to members of the Coast Guard Ready
Reserve (other than members on full-time Reserve duty other
than for training) who are not otherwise described in
subparagraph (A)(ii).
``(2) The amount determined under paragraph (1) for any
fiscal year is the amount needed to be appropriated to the
Department of Homeland Security for that fiscal year for
payments to be made to the Fund during that year under
section 445(a) of this title. The President shall include not
less than the full amount so determined in the budget
transmitted to Congress for that fiscal year under section
1105 of title 31. The President may comment and make
recommendations concerning any such amount.
``(c) Periodic Actuarial Valuations.--(1) Not less often
than every four years (or before the effective date of any
statutory change affecting benefits payable on account of
retirement, disability, or death to members of the Coast
Guard or their survivors), the Secretary shall carry out an
actuarial valuation of the Coast Guard military retirement
and survivor benefit programs. Each actuarial valuation of
such programs shall be signed by an enrolled actuary and
shall include--
``(A) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
members of the Coast Guard on active duty (other than active
duty for training); and
``(B) a determination (using the aggregate entry-age normal
cost method) of single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37) for
members of the Ready Reserve of the Coast Guard (other than
members on full-time Reserve duty other than for training)
who are not otherwise described in subparagraph (A).
``(2) Such single level percentages shall be used for the
purposes of subsection (b) and section 445(a) of this title.
``(d) Use of Generally Accepted Actuarial Principles and
Practices.--All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(e) Records.--The Secretary shall provide for the keeping
of such records as are necessary for determining the
actuarial status of the Fund.
``Sec. 445. Payments into the Fund
``(a) Monthly Accrual Charge for Current Services.--From
amounts appropriated to the Coast Guard for salaries and
expenses, the Secretary shall pay into the Fund at the end of
each month as the Department of Homeland Security, or
Department of Defense, contribution to the Fund for that
month the amount that is the sum of the following:
``(1) The product of--
``(A) the level percentage of basic pay determined using
all the methods and assumptions approved for the most recent
(as of the first day of the current fiscal year) actuarial
valuation under section 444(c)(1)(A) of this title (except
that any statutory change in the military retirement and
survivor benefit systems that is effective after the date of
that valuation and on or before the first day of the current
fiscal year shall be used in such determination); and
``(B) the total amount of basic pay accrued for that month
by members of the Coast Guard on active duty (other than
active duty for training).
``(2) The product of--
``(A) the level percentage of basic pay and compensation
(accrued pursuant to section 206 of title 37) determined
using all the methods and assumptions approved for the most
recent (as of the first day of the current fiscal year)
actuarial valuation under section 444(c)(1)(B) of this title
(except that any statutory change in the military retirement
and survivor benefit systems that is effective after the date
of that valuation and on or before the first day of the
current fiscal year shall be used in such determination); and
``(B) the total amount of basic pay and of compensation
(paid pursuant to section 206 of title 37) accrued for that
month by members of the Ready Reserve (other than members of
full-time Reserve duty other than for training) who are not
otherwise described in paragraph (1)(B).
``(b) Annual Payment for Unfunded Liabilities.--(1) At the
beginning of each fiscal year, beginning on October 1, 2005,
the Secretary shall certify to the Secretary of the Treasury
the amount of the first installment under the most recent
amortization schedule established under section 254(a). The
Secretary of the Treasury shall promptly pay into the Fund
from the General Fund of the Treasury the amount so
certified. Such payment shall be the contribution to the Fund
for that fiscal year.
``Sec. 446. Investment of assets of the Fund
``The Secretary may request the Secretary of the Treasury
to invest such portion of the
[[Page H5037]]
Fund as is not, in the judgment of the Secretary, required to
meet the current needs of the Fund. Such investments shall be
made by the Secretary of the Treasury in public debt
securities with maturities suitable to the needs of the Fund,
as determined by the Secretary, and bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturities.
The income on such investments shall be credited to and form
a part of the Fund.''.
(2) Technical amendments.--Such chapter is further
amended--
(A) by amending the center heading after the table of
sections to read as follows:
``SUBCHAPTER I--OFFICERS'';
(B) by amending the center heading after section 336 to
read as follows:
``SUBCHAPTER II--ENLISTED MEMBERS'';
(C) by amending the center heading after section 373 to
read as follows:
``SUBCHAPTER III--GENERAL PROVISIONS'';
and
(D) by amending the center heading after section 425 to
read as follows:
``SUBCHAPTER IV--SPECIAL PROVISIONS''.
(3) Clerical amendments.--The table of sections at the
beginning of such chapter is amended--
(A) by striking ``officers'' at the beginning of the table
and inserting ``subchapter i--officers'';
(B) by striking ``enlisted members'' after the item
relating to section 336 and inserting ``subchapter ii--
enlisted members'';
(C) by striking ``general provisions'' after the item
relating to section 373 and inserting ``subchapter iii--
general provisions'';
(D) by striking ``special provisions'' after the item
relating to section 425 and inserting ``subchapter iv--
special provisions''; and
(E) by adding at the end the following:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``441. Establishment and purpose of Fund; definitions.
``442. Assets of the Fund.
``443. Payments from the Fund.
``444. Determination of contributions to the Fund.
``445. Payments into the Fund.
``446. Investment of assets of the Fund.''.
(b) Implementation Year Exceptions.--To avoid funding
shortfalls in the first year of implementation of subchapter
V of chapter 11 of title 14, United States Code, as added by
subsection (a), if formal actuarial determinations are not
available in time for budget preparation, the amounts used in
the first year under sections 445(a)(1)(A) and 445(a)(2)(A)
of such title shall be set equal to those estimates in
sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively,
of such title if final determinations are not available. The
original unfunded liability, as defined in section 444(a) of
such title, shall include an adjustment to correct for this
difference between the formal actuarial determinations and
the estimates in sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i)
of such title.
(c) Conforming Amendment.--Section 256(f) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
906(f)) is amended by striking ``Retired Pay, Coast Guard
(69-0241-0-1-403)'' and inserting ``Coast Guard Military
Retirement Fund (69-0241-01-403)''.
(d) Transfer of Existing Balances.--
(1) Transfer.--There shall be transferred into the Fund on
October 1, 2005, any obligated and unobligated balances of
appropriations made to the Department of Homeland Security
that are currently available for retired pay, and amounts so
transferred shall be part of the assets of the Fund.
(2) Fund defined.--For purposes of paragraph (1), the term
``Fund'' means the Coast Guard Military Retirement Fund
established under section 441 of title 14, United States
Code, as added by subsection (a).
(e) Effective Date.--Sections 443 (relating to payments
from the Fund) and 445 (relating to payments into the Fund)
of title 14, United States Code, as added by subsection (a),
shall take effect on October 1, 2005.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
SEC. 411. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.
(a) Section 8906 of title 5, United States Code, is
amended--
(1) by redesignating subsection (c) as subsection (c)(1)
and by adding at the end the following new paragraphs:
``(2) In addition to Government contributions required by
subsection (b) and paragraph (1), each employing agency shall
contribute amounts as determined by the Office to be
necessary to prefund the accruing actuarial cost of post-
retirement health benefits for each of the agency's current
employees who are eligible for Government contributions under
this section. Amounts under this paragraph shall be paid by
the employing agency separate from other contributions under
this section, from the appropriations or fund used for
payment of the salary of the employee, on a schedule to be
determined by the Office.
``(3) Paragraph (2) shall not apply to the United States
Postal Service or the government of the District of
Columbia.''; and
(2) by amending subsection (g)(1) to read as follows:
``(g)(1) Except as provided in paragraphs (2) and (3), all
Government contributions authorized by this section for
health benefits for an annuitant shall be paid from the
Employees Health Benefits Fund to the extent that funds are
available in accordance with section 8909(h)(6) and, if
necessary, from annual appropriations which are authorized to
be made for that purpose and which may be made available
until expended.''.
(b) Section 8909 of title 5, United States Code, is amended
by adding at the end the following new subsection:
``(h)(1) Not later than June 30, 2006, the Office shall
determine the existing liability of the Fund for post-
retirement health benefits, excluding the liability of the
United States Postal Service for service under section
8906(g)(2), under this chapter as of September 30, 2006. The
Office shall establish an amortization schedule, including a
series of annual installments commencing September 30, 2006,
which provides for the liquidation of such liability by
September 30, 2043.
``(2) At the close of each fiscal year, for fiscal years
beginning after September 30, 2005, the Office shall
determine the supplemental liability of the Fund for post-
retirement health benefits, excluding the liability
attributable to the United States Postal Service for service
subject to section 8906(g)(2), and shall establish an
amortization schedule, including a series of annual
installments commencing on September 30 of the subsequent
fiscal year, which provides for liquidation of such
supplemental liability over 30 years.
``(3) Amortization schedules established under this
paragraph shall be set in accordance with generally accepted
actuarial practices and principles.
``(4) At the end of each fiscal year on and after September
30, 2006, the Office shall notify the Secretary of the
Treasury of the amounts of the next installments under the
most recent amortization schedules established under
paragraphs (1) and (2). Before closing the accounts for the
fiscal year, the Secretary shall credit the sum of these
amounts (including in that sum any negative amount for the
amortization of the supplemental liability) to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.
``(5) For the purpose of carrying out paragraphs (1) and
(2), the Office shall perform or arrange for actuarial
determinations and valuations and shall prescribe retention
of such records as it considers necessary for making periodic
actuarial valuations of the Fund.
``(6) Notwithstanding subsection (b), the amounts deposited
into the Fund pursuant to this subsection and section
8906(c)(2) to prefund post-retirement health benefits costs
shall be segregated within the Fund so that such amounts, as
well as earnings and proceeds under subsection (c)
attributable to them, may be used exclusively for the purpose
of paying Government contributions for post-retirement health
benefits costs. When such amounts are used in combination
with amounts withheld from annuitants to pay for health
benefits, a portion of the contributions shall then be set
aside in the Fund as described in subsection (b).
``(7) Under this subsection, `supplemental liability'
means--
``(A) the actuarial present value for future post-
retirement health benefits that are the liability of the
Fund, less
``(B) the sum of--
``(i) the actuarial present value of all future
contributions by agencies and annuitants to the Fund toward
those benefits pursuant to section 8906;
``(ii) the present value of all scheduled amortization
payments to the Fund pursuant to paragraphs (1) and (2);
``(iii) the Fund balance as of the date the supplemental
liability is determined, to the extent that such balance is
attributable to post-retirement benefits; and
``(iv) any other appropriate amount, as determined by the
Office in accordance with generally accepted actuarial
practices and principles.''.
SEC. 412. FUNDING UNIFORMED SERVICES HEALTH BENEFITS FOR ALL
RETIREES.
Title 10, United States Code, is amended--
(1) in the title of chapter 56, by striking ``DEPARTMENT OF
DEFENSE MEDICARE-ELIGIBLE'' and inserting ``UNIFORMED
SERVICES'';
(2) in section 1111--
(A) in subsection (a)--
(i) by striking ``Department of Defense Medicare-Eligible''
and inserting ``Uniformed Services'';
(ii) by striking ``Department of Defense under''; and
(iii) by striking ``for medicare-eligible beneficiaries'';
(B) in subsection (c)--
(i) by striking ``The Secretary of Defense may'' and
inserting ``The Secretary of Defense shall'';
(ii) by striking ``with any other'' and inserting ``with
each'';
(iii) by striking ``Any such agreement'' and inserting
``Such agreements''; and
(iv) by striking ``administering Secretary may'' and
inserting ``administrative Secretary shall'';
(3) in section 1113--
(A) in subsection (a)--
(i) by striking ``and are medicare eligible'';
(ii) by striking ``who are medicare eligible''; and
[[Page H5038]]
(iii) by adding at the end the following new sentence:
``For the fiscal year starting October 1, 2004, only, the
payments will be solely for the costs of members or former
members of a uniformed service who are entitled to retired or
retainer pay and are medicare-eligible, and eligible
dependents or survivors who are medicare-eligible.'';
(B) in subsection (c)(1), by striking ``who are medicare-
eligible'';
(C) in subsection (d), by striking ``who are medicare-
eligible''; and
(D) in subsection (f), by striking ``If'' and inserting
``When'';
(4) in section 1114, in subsection (a)(1), by striking
``Department of Defense Medicare-Eligible'' and inserting
``Uniformed Services'';
(5) in section 1115--
(A) in subsection (b)(2), by striking ``The amount
determined under paragraph (1) for any fiscal year is the
amount needed to be appropriated to the Department of Defense
(or to the other executive department having jurisdiction
over the participating uniformed service)'' and inserting
``The amount determined under paragraph (1), or the amount
determined under section 1111(c) for a participating
uniformed service, for any fiscal year, is the amount needed
to be appropriated to the Department of Defense (or to any
other executive department having jurisdiction over a
participating uniformed service)'';
(B) in subsection (c)(2), by striking ``for medicare
eligible beneficiaries''; and
(C) by adding at the end the following new subsection:
``(f) For the fiscal year starting October 1, 2004, only,
the amounts in this section shall be based solely on the
costs of medicare-eligible benefits of beneficiaries and the
costs for their eligible dependents or survivors who are
medicare-eligible, and shall be recalculated thereafter to
reflect the cost of beneficiaries defined in section 1111.'';
and
(6) in section 1116--
(A) in subsection (a)(1)(A), by striking ``for medicare-
eligible beneficiaries'';
(B) in subsection (a)(2)(A), by striking ``for medicare-
eligible beneficiaries''; and
(C) in subsection (c), by striking ``subsection (a) shall
be paid from funds available for the health care programs''
and inserting ``subsection (a) and section 1111(c) shall be
paid from funds available for the pay of members of the
participating uniformed services under the jurisdiction of
the respective administering secretaries''.
SEC. 413. EFFECTIVE DATE.
Except as otherwise provided, this title shall take effect
upon enactment with respect to fiscal years beginning after
2005.
Subtitle C--Limit on the Public Debt
SEC. 421. FINDINGS.
The Congress finds the following:
(1) Since 1997, Congress has paid down and retired
approximately $450,000,000,000 of the Government's debt which
was previously held by the public.
(2) This reduction in the Government's debt to the public
should permit a lowering of the statutory debt ceiling.
However, the statutory definition mingles both the public
debt and intragovernment liabilities, the latter of which do
not represent resource withdrawals for the economy.
(3) Intragovernment accounts such as the social security
trust funds, the Civil Service Retirement and Disability
Fund, the Department of Defense Military Retirement Fund, and
the Unemployment Trust Fund constitute accrued liabilities of
the Government which will be paid from future receipts,
taxes, or borrowing. If the Government issues debt to the
public to fund such liabilities in the future, that debt will
properly be subject to the debt ceiling.
(4) Properly defining the debt of the Government would
permit lowering the debt ceiling to take account of, and lock
in, the fiscal progress that has been made.
SEC. 422. PURPOSE.
It is the purpose of this subtitle to properly define the
public debt to exclude intragovernment obligations.
SEC. 423. LIMIT ON PUBLIC DEBT.
Section 3101 of title 31, United States Code, is amended to
read as follows:
``Sec. 3101. Public debt limit
``(a) In this section, the current redemption value of an
obligation issued on a discount basis and redeemable before
maturity at the option of its holder is deemed to be the face
amount of the obligation.
``(b) The face amount of obligations issued under this
chapter and the face amount of obligations whose principal
and interest are guaranteed by the United States Government
(except guaranteed obligations held by the Secretary of the
Treasury and intragovernmental holdings) may not be more than
$4,393,000,000,000 outstanding at one time, subject to
changes periodically made in that amount as provided by law.
``(c) For purposes of this section, the face amount, for
any month, of any obligation issued on a discount basis that
is not redeemable before maturity at the option of the holder
of the obligation is an amount equal to the sum of--
``(1) the original issue price of the obligation, plus
``(2) the portion of the discount on the obligation
attributable to periods before the beginning of such month
(as determined under the principles of section 1272(a) of the
Internal Revenue Code of 1986 without regard to any
exceptions contained in paragraph (2) of such section).
``(d) For purposes of this section, the term
`intragovernment holding' is any obligation issued by the
Secretary of the Treasury to any Federal trust fund or
Government account, whether in respect of public money, money
otherwise required to be deposited in the Treasury, or
amounts appropriated.''.
Subtitle D--Risk-assumed Budgeting
SEC. 431. FEDERAL INSURANCE PROGRAMS.
(a) In General.--The Congressional Budget Act of 1974 is
amended by adding after title V the following new title:
``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
``SEC. 602. BUDGETARY TREATMENT.
``(a) President's Budget.--Beginning with fiscal year 2011,
the budget of the Government pursuant to section 1105(a) of
title 31, United States Code, shall be based on the risk-
assumed cost of Federal insurance programs.
``(b) Budget Accounting.--For any Federal insurance
program--
``(1) the program account shall--
``(A) pay the risk-assumed cost borne by the taxpayer to
the financing account, and
``(B) pay actual insurance program administrative costs;
``(2) the financing account shall--
``(A) receive premiums and other income,
``(B) pay all claims for insurance and receive all
recoveries,
``(C) transfer to the program account on not less than an
annual basis amounts necessary to pay insurance program
administrative costs;
``(3) a negative risk-assumed cost shall be transferred
from the financing account to the program account, and shall
be transferred from the program account to the general fund;
and
``(4) all payments by or receipts of the financing accounts
shall be treated in the budget as a means of financing.
``(c) Appropriations Required.--(1) Notwithstanding any
other provision of law, insurance commitments may be made for
fiscal year 2011 and thereafter only to the extent that new
budget authority to cover their risk-assumed cost is provided
in advance in an appropriation Act.
``(2) An outstanding insurance commitment shall not be
modified in a manner that increases its risk-assumed cost
unless budget authority for the additional cost has been
provided in advance.
``(3) Paragraph (1) shall not apply to Federal insurance
programs that constitute entitlements.
``(d) Reestimates.--The risk-assumed cost for a fiscal year
shall be reestimated in each subsequent year. Such reestimate
can equal zero. In the case of a positive reestimate, the
amount of the reestimate shall be paid from the program
account to the financing account. In the case of a negative
reestimate, the amount of the reestimate shall be paid from
the financing account to the program account, and shall be
transferred from the program account to the general fund.
Reestimates shall be displayed as a distinct and separately
identified subaccount in the program account.
``(e) Administrative Expenses.--All funding for an agency's
administration of a Federal insurance program shall be
displayed as a distinct and separately identified subaccount
in the program account.
``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING
FOR FEDERAL INSURANCE PROGRAMS.
``(a) Agency Requirements.--Agencies with responsibility
for Federal insurance programs shall develop models to
estimate their risk-assumed cost by year through the budget
horizon and shall submit those models, all relevant data, a
justification for critical assumptions, and the annual
projected risk-assumed costs to OMB with their budget
requests each year starting with the request for fiscal year
2007. Agencies will likewise provide OMB with annual
estimates of modifications, if any, and reestimates of
program costs.
``(b) Disclosure.--When the President submits a budget of
the Government pursuant to section 1105(a) of title 31,
United States Code, for fiscal year 2007, OMB shall publish a
notice in the Federal Register advising interested persons of
the availability of information describing the models, data
(including sources), and critical assumptions (including
explicit or implicit discount rate assumptions) that it or
other executive branch entities would use to estimate the
risk-assumed cost of Federal insurance programs and giving
such persons an opportunity to submit comments. At the same
time, the chairman of the Committee on the Budget shall
publish a notice for CBO in the Federal Register advising
interested persons of the availability of information
describing the models, data (including sources), and critical
assumptions (including explicit or implicit discount rate
assumptions) that it would use to estimate the risk-assumed
cost of Federal insurance programs and giving such interested
persons an opportunity to submit comments.
``(c) Revision.--(1) After consideration of comments
pursuant to subsection (b), and in consultation with the
Committees on the Budget of the House of Representatives and
the Senate, OMB and CBO shall revise the models, data, and
major assumptions they would use to estimate the risk-assumed
cost of Federal insurance programs.
``(2) When the President submits a budget of the Government
pursuant to section 1105(a) of title 31, United States Code,
for fiscal year 2008, OMB shall publish a notice in the
Federal Register advising interested persons of the
availability of information describing the models, data
(including
[[Page H5039]]
sources), and critical assumptions (including explicit or
implicit discount rate assumptions) that it or other
executive branch entities used to estimate the risk-assumed
cost of Federal insurance programs.
``(d) Display.--
``(1) In general.--For fiscal years 2008, 2009, and 2010
the budget submissions of the President pursuant to section
1105(a) of title 31, United States Code, and CBO's reports on
the economic and budget outlook pursuant to section 202(e)(1)
and the President's budgets, shall for display purposes only,
estimate the risk-assumed cost of existing or proposed
Federal insurance programs.
``(2) OMB.--The display in the budget submissions of the
President for fiscal years 2008, 2009, and 2010 shall
include--
``(A) a presentation for each Federal insurance program in
budget-account level detail of estimates of risk-assumed
cost;
``(B) a summary table of the risk-assumed costs of Federal
insurance programs; and
``(C) an alternate summary table of budget functions and
aggregates using risk-assumed rather than cash-based cost
estimates for Federal insurance programs.
``(3) CBO.--In the second session of the 109th Congress and
the 110th Congress, CBO shall include in its estimates under
section 308, for display purposes only, the risk-assumed cost
of existing Federal insurance programs, or legislation that
CBO, in consultation with the Committees on the Budget of the
House of Representatives and the Senate, determines would
create a new Federal insurance program.
``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6
months after the budget submission of the President pursuant
to section 1105(a) of title 31, United States Code, for
fiscal year 2010, OMB, CBO, and GAO shall each submit to the
Committees on the Budget of the House of Representatives and
the Senate a report that evaluates the advisability and
appropriate implementation of this title.
``(2) Each report made pursuant to paragraph (1) shall
address the following:
``(A) The adequacy of risk-assumed estimation models used
and alternative modeling methods.
``(B) The availability and reliability of data or
information necessary to carry out this title.
``(C) The appropriateness of the explicit or implicit
discount rate used in the various risk-assumed estimation
models.
``(D) The advisability of specifying a statutory discount
rate (such as the Treasury rate) for use in risk-assumed
estimation models.
``(E) The ability of OMB, CBO, or GAO, as applicable, to
secure any data or information directly from any Federal
agency necessary to enable it to carry out this title.
``(F) The relationship between risk-assumed accrual
budgeting for Federal insurance programs and the specific
requirements of the Balanced Budget and Emergency Deficit
Control Act of 1985.
``(G) Whether Federal budgeting is improved by the
inclusion of risk-assumed cost estimates for Federal
insurance programs.
``(H) The advisability of including each of the programs
currently estimated on a risk-assumed cost basis in the
Federal budget on that basis.
``SEC. 604. DEFINITIONS.
``For purposes of this title:
``(1) The term `Federal insurance program' means a program
that makes insurance commitments and includes the list of
such programs included in the joint explanatory statement of
managers accompanying the conference report on the
Comprehensive Budget Process Reform Act of 1999.
``(2) The term `insurance commitment' means an agreement in
advance by a Federal agency to indemnify a nonfederal entity
against specified losses. This term does not include loan
guarantees as defined in title V or benefit programs such as
social security, medicare, and similar existing social
insurance programs.
``(3)(A) The term `risk-assumed cost' means the net present
value of the estimated cash flows to and from the Government
resulting from an insurance commitment or modification
thereof.
``(B) The cash flows associated with an insurance
commitment include--
``(i) expected claims payments inherent in the Government's
commitment;
``(ii) net premiums (expected premium collections received
from or on behalf of the insured less expected administrative
expenses);
``(iii) expected recoveries; and
``(iv) expected changes in claims, premiums, or recoveries
resulting from the exercise by the insured of any option
included in the insurance commitment.
``(C) The cost of a modification is the difference between
the current estimate of the net present value of the
remaining cash flows under the terms of the insurance
commitment, and the current estimate of the net present value
of the remaining cash flows under the terms of the insurance
commitment as modified.
``(D) The cost of a reestimate is the difference between
the net present value of the amount currently required by the
financing account to pay estimated claims and other
expenditures and the amount currently available in the
financing account. The cost of a reestimate shall be
accounted for in the current year in the budget of the
Government pursuant to section 1105(a) of title 31, United
States Code.
``(E) For purposes of this definition, expected
administrative expenses shall be construed as the amount
estimated to be necessary for the proper administration of
the insurance program. This amount may differ from amounts
actually appropriated or otherwise made available for the
administration of the program.
``(4) The term `program account' means the budget account
for the risk-assumed cost, and for paying all costs of
administering the insurance program, and is the account from
which the risk-assumed cost is disbursed to the financing
account.
``(5) The term `financing account' means the nonbudget
account that is associated with each program account which
receives payments from or makes payments to the program
account, receives premiums and other payments from the
public, pays insurance claims, and holds balances.
``(6) The term `modification' means any Government action
that alters the risk-assumed cost of an existing insurance
commitment from the current estimate of cash flows. This
includes any action resulting from new legislation, or from
the exercise of administrative discretion under existing law,
that directly or indirectly alters the estimated cost of
existing insurance commitments.
``(7) The term `model' means any actuarial, financial,
econometric, probabilistic, or other methodology used to
estimate the expected frequency and magnitude of loss-
producing events, expected premiums or collections from or on
behalf of the insured, expected recoveries, and
administrative expenses.
``(8) The term `current' has the same meaning as in section
250(c)(9) of the Balanced Budget and Emergency Deficit
Control Act of 1985.
``(9) The term `OMB' means the Director of the Office of
Management and Budget.
``(10) The term `CBO' means the Director of the
Congressional Budget Office.
``(11) The term `GAO' means the Comptroller General of the
United States.
``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL
COST ACCOUNT.
``(a) Authorization of Appropriations.--There is authorized
to be appropriated $600,000 for each of fiscal years 2005
through 2010 to the Director of the Office of Management and
Budget and each agency responsible for administering a
Federal program to carry out this title.
``(b) Treasury Transactions With the Financing Accounts.--
The Secretary of the Treasury shall borrow from, receive
from, lend to, or pay the insurance financing accounts such
amounts as may be appropriate. The Secretary of the Treasury
may prescribe forms and denominations, maturities, and terms
and conditions for the transactions described above. The
authorities described above shall not be construed to
supersede or override the authority of the head of a Federal
agency to administer and operate an insurance program. All
the transactions provided in this subsection shall be subject
to the provisions of subchapter II of chapter 15 of title 31,
United States Code. Cash balances of the financing accounts
in excess of current requirements shall be maintained in a
form of uninvested funds, and the Secretary of the Treasury
shall pay interest on these funds.
``(c) Appropriation of Amount Necessary To Cover Risk-
Assumed Cost of Insurance Commitments at Transition Date.--
(1) A financing account is established on September 30, 2010,
for each Federal insurance program.
``(2) There is appropriated to each financing account the
amount of the risk-assumed cost of Federal insurance
commitments outstanding for that program as of the close of
September 30, 2010.
``(3) These financing accounts shall be used in
implementing the budget accounting required by this title.
``SEC. 606. EFFECTIVE DATE.
``(a) In General.--This title shall take effect immediately
and shall expire on September 30, 2012.
``(b) Special Rule.--If this title is not reauthorized by
September 30, 2012, then the accounting structure and
budgetary treatment of Federal insurance programs shall
revert to the accounting structure and budgetary treatment in
effect immediately before the date of enactment of this
title.''.
(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 507 the following new items:
``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for
Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost
account.
``Sec. 606. Effective date.''.
TITLE V--MAINTAINING A COMMITMENT TO THE FAMILY BUDGET
Subtitle A--Further Enforcement Amendments
SEC. 501. SUPER-MAJORITY POINTS OF ORDER IN THE HOUSE OF
REPRESENTATIVES AND THE SENATE.
(a) Section 904 of the Congressional Budget Act of 1974 is
amended as follows:
(1) In subsection 904(c)(1), insert ``312(g), (h), (i), and
(j),'' before ``313,'', and insert ``316, 318,'' before
``904(c),''.
[[Page H5040]]
(2) In subsection (c) strike ``three-fifths'' each place it
appears and insert ``two-thirds''.
(3)(A) In subsection (d)(2), insert ``312(g), (h), (i), and
(j),'' before ``313,'', and insert ``316, 318,'' before
``904(c),''.
(B) In subsection (d), strike ``three-fifths'' each place
it appears and insert ``two-thirds''.
(4)(A) In subsections (c)(2) and (d)(3), strike
``311(a),''.
(B) In subsections (c)(1) and (d)(2) insert ``311(a),''
after ``310(d)(2),''.
(5) In subsections (c)(1), (c)(2), (d)(2), and (d)(3) by
inserting ``or the House of Representatives'' after
``Senate'' each place it appears.
(6) In subsection (e), strike ``2002'' and insert ``2010''.
SEC. 502. BUDGET RESOLUTION ENFORCEMENT POINT OF ORDER.
(a) Entitlement Point of Order.--Section 312 of the
Congressional Budget Act of 1974 (as amended by section
221(d)) is further amended by adding at the end the following
new subsection:
``(j) Budget Resolution Enforcement Point of Order.--It
shall not be in order in the House of Representatives or the
Senate to consider any joint resolution on the budget for a
fiscal year, or amendment thereto or conference report
thereon, that--
``(1) is not consistent with the discretionary spending
limits set forth in section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985; or
``(2) provides for an increase in the aggregate level of
direct spending for the fiscal year of the resolution or any
ensuing fiscal year included in such resolution.''.
SEC. 503. POINT OF ORDER WAIVER PROTECTION.
Rule XIII of the Rules of the House of Representatives is
amended by adding at the end the following new clause:
``8. (a) It shall not be in order to consider a rule or
order that would waive waive the provisions of any section of
the Congressional Budget Act of 1974 referred to in section
904(c)(1) of such Act or of section 302 of the Family Budget
Protection Act of 2004.
``(b) As disposition of a point of order under paragraph
(a), the Chair shall put the question of consideration with
respect to the proposition that is the subject of the point
of order. A question of consideration under this clause shall
be debatable for 10 minutes by the Member initiating the
point of order and for 10 minutes by an opponent of the point
of order, but shall otherwise be decided without intervening
motion except one that the House adjourn or that the
Committee of the Whole rise, as the case may be.
``(c) The disposition of the question of consideration
under this clause with respect to a bill or joint resolution
shall be considered also to determine the question of
consideration under this clause with respect to an amendment
made in order as original text.''.
Subtitle B--The Byrd Rule
SEC. 511. LIMITATION ON BYRD RULE.
(a) Protection of Conference Reports.--Section 313 of the
Congressional Budget Act of 1974 is amended--
(1) in subsection (b)(1), by striking subparagraph (E)
through the semicolon at the end thereof and by redesignating
subparagraph (F) as subparagraph (E);
(2) in subsection (c), by striking ``and again upon the
submission of a conference report on such a reconciliation
bill or resolution,'';
(3) by striking subsection (d);
(4) by redesignating subsection (e) as subsection (d); and
(5) in subsection (e), as redesignated--
(A) by striking ``, motion, or conference report'' the
first place it appears and inserting ``, or motion''; and
(B) by striking ``, motion, or conference report'' the
second and third places it appears and inserting ``or
motion''.
(b) Conforming Amendment.--The first sentence of section
312(e) of the Congressional Budget Act of 1974 is amended by
inserting ``, except for section 313,'' after ``Act''.
Subtitle C--Treatment of Extraneous Appropriations in Omnibus
Appropriation Measures
SEC. 521. TREATMENT OF EXTRANEOUS APPROPRIATIONS.
(a) In General.--Title III of the Congressional Budget Act
of 1974 (as amended by section 127(a)) is further amended by
adding at the end the following new section:
``treatment of extraneous appropriations in omnibus appropriation
measures
``Sec. 319. (a) Point of Order.--It shall not be in order
in the House of Representatives or the Senate to consider an
omnibus appropriation measure, or any amendment thereto or
conference report thereon, that appropriates funds for any
program, project, or activity that is not within the subject-
matter jurisdiction of any subcommittee of the Committee on
Appropriations of the House of Representatives or Senate, as
applicable, with jurisdiction over any regular appropriation
bill contained in such measure.
``(b) Definitions.--As used in this section:
``(1) The term `omnibus appropriation measure' means any
bill or joint resolution making continuing appropriations for
a fiscal year and that is comprised of more than one regular
appropriation bills.
``(2) The term `regular appropriation bill' means any
annual appropriation bill making appropriations, otherwise
making funds available, or granting authority, for any of the
following categories of projects and activities:
``(A) Agriculture, rural development, Food and Drug
Administration, and related agencies programs.
``(B) The Departments of Commerce, Justice, and State, the
Judiciary, and related agencies.
``(C) The Department of Defense.
``(D) The government of the District of Columbia and other
activities chargeable in whole or in part against the
revenues of the District.
``(E) Energy and water development.
``(F) Foreign operations, export financing, and related
programs.
``(G) The Department of Homeland Security.
``(H) The Department of the Interior and related agencies.
``(I) The Departments of Labor, Health and Human Services,
and Education, and related agencies.
``(J) The Legislative Branch.
``(K) Military construction, family housing, and base
realignment and closure for the Department of Defense.
``(L) The Departments of Transportation and Treasury, and
independent agencies.
``(M) The Departments of Veterans Affairs and Housing and
Urban Development, and sundry independent agencies, boards,
commissions, corporations, and offices.''.
(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 318 the following new item:
``Sec. 319. Treatment of extraneous appropriations in omnibus
appropriation measures.''.
The CHAIRMAN pro tempore. Pursuant to House Resolution 692, the
gentleman from Texas (Mr. Hensarling) and a Member opposed each will
control 15 minutes.
The Chair recognizes the gentleman from Texas (Mr. Hensarling).
Mr. HENSARLING. Mr. Chairman, I yield myself as much time as I may
consume.
Mr. Chairman, how much government is enough? Can we ever have enough?
It seems many Members in this Chamber would say no. They seem to
believe there should be no limit to the size, to the power, to the
expense of the Federal Government.
Mr. Chairman, the Founding Fathers disagreed. They believed in
limited government. They warned us of the pitfalls of allowing
government to grow out of control. James Madison wrote in the
Federalist Papers: ``There will be little avail to the people that laws
are made by men of their own choice if the laws be so voluminous that
they cannot be read or so incoherent they cannot be understood.''
Thomas Jefferson wrote that the natural progress of things is for
liberty to yield and for government to gain ground.
Well, Mr. Chairman, just how much ground has government gained? Since
I was born, the Federal budget has grown seven times faster than the
family budget, as you can see from the attached chart. For only the
fourth time in the history of our Nation, the Federal Government is now
spending over $20,000 per household. This figure is up from $16,000 per
household just 5 years ago. This represents the largest expansion of
the Federal Government in 50 years.
Last year what we call mandatory spending reached 11 percent of our
economy for the first time ever. Nondefense discretionary spending is
now almost 4 percent of the economy for the first time in 20 years.
In fact, almost every major department of the government has grown
precipitously way beyond the rate of inflation. By any reasonable
measure, spending is out of control. And when we get more government,
we get less freedom, fewer opportunities, fewer opportunities for
Americans to choose the best health care for their families, to choose
the best educational opportunities for their children, or to find the
best job in a competitive market economy. You cannot have unlimited
government and unlimited opportunity.
What else do we get for all this government spending? Unfortunately,
we get a lot of waste, fraud, abuse, and duplication.
Until recently, Medicare had routinely paid as much as five times for
a wheelchair as the VA had, simply because one would bid competitively
and the other did not. In the last year of the Clinton administration,
HUD wasted over 10 percent of their budget, $3 billion just lost making
improper payments to people who did not qualify.
We have spent almost $800,000 on an outhouse in one national park,
and it did not even work. We have over 342
[[Page H5041]]
different economic development programs in the Federal Government, and
by the way, what does the Federal Government know about economic
development anyway?
We are just scratching the surface here. Example after example shows
that many Federal programs routinely waste 5, 10, 15, even 20, percent
of their taxpayer-funded budgets in the last 4 decades. Government is
inherently wasteful. It does almost nothing as well as we the people;
and until we limit it, we will never prioritize, much less root out,
the waste, the fraud, the abuse, the duplication that permeates every
corner of the Federal Government and robs every family.
Recently, many of us in this Chamber spoke very eloquently about the
legacy of President Ronald Reagan. Well, Mr. Chairman, I would remind
us that it was President Reagan who said the answer to a government
that is too big is to stop feeding its growth.
It was President Reagan who said we can no longer afford things
simply because we think of them, and it was President Reagan who stood
in this Chamber and called on Congress to limit government and fix a
broken-down budget process.
Now, there are many ways that we can honor the memory of President
Reagan. Tonight, I can think of no better way than passing the bill
that would accomplish his dream.
Mr. Chairman, the time to act is now. We have the opportunity to
realize the vision of Ronald Reagan, or we can continue with the
largest expansion of government in 50 years. We can protect the family
budget from the Federal budget, or we can continue to operate under a
budget process that only serves to grow bigger and bigger government.
That is why, along with my colleagues, the gentleman from California
(Mr. Cox), the gentleman from Wisconsin (Mr. Ryan), the gentleman from
Indiana (Mr. Chocola), I offer as a substitute the Family Budget
Protection Act, along with more than a hundred cosponsors.
And our bill has two simple propositions. Number one, it says the
Federal budget should not grow faster than the family budget. Quite
simply, there should be some ceiling on the growth of government. At
some point we say enough is enough. We will take no more money away
from American families.
Secondly, it says if Congress passes a budget, it ought to abide by
the budget. It ought to enforce the budget. It ought to live by the
budget. It is really that simple.
Mr. Chairman, I reserve the balance of my time.
Mr. NUSSLE. Mr. Chairman, I claim the time in opposition, and I ask
unanimous consent that the gentleman from South Carolina (Mr. Spratt)
be yielded half of that time.
The CHAIRMAN pro tempore. Is there objection to the request of the
gentleman from Iowa?
There was no objection.
The CHAIRMAN pro tempore. The Chair recognizes the gentleman from
South Carolina (Mr. Spratt).
Mr. SPRATT. Mr. Chairman, I yield myself 2 minutes.
For those who have voted against the previous amendments dealing with
automatic extension of continuing resolutions, dealing with expedited
rescission, for various other reasons they should be aware that this
budget reincorporates all of those other provisions which they found
onerous and objectionable in the past and would instate them in a
bigger bill.
The chief feature of this bill which is objectionable is the effort
it makes to put a cap on entitlement spending. According to the Center
on Budget and Policy Priorities, if enacted, this particular provision
would trigger the most severe budget cuts in modern history,
calculation by which it would require entitlement cuts of $1.8 trillion
over the next 10 years.
There are a couple of things to be aware of. When they say they are
capping entitlement, they are capping not only entitlements like
Medicare, Medicaid; they are also capping interest on the national
debt. So one can have a result that certain Members would seek to have
a large tax cut and succeed, which would increase the deficit and,
therefore, increase the national debt and result in higher interest
payments. And those interest payments would then have to be
accommodated within the cap that will be imposed on entitlement
spending.
Take also the level at which the cap is set and how it treats the
Medicare program. The cost of the new Medicare drug benefit enacted
last year to real spending occurs until the year 2006. The cap will be
set at 2005 spending levels. So there will be a substantial amount of
additional spending for Medicare which will have to be recouped from
cuts in entitlements like Medicare.
This bill is full of anomalies that could have disastrous effect upon
the programs in this country upon which people depend.
I will come back and explain further why this bill should be defeated
soundly.
Mr. Chairman, I reserve the balance of my time.
Mr. HENSARLING. Mr. Chairman, I yield 4 minutes to the gentleman from
Wisconsin (Mr. Ryan).
Mr. RYAN of Wisconsin. Mr. Chairman, I would like to address a few of
the things that the gentleman from South Carolina said. As far as the
estimate on the $1.8 trillion cut, that is not accurate for this bill.
Number one, this bill addresses those issues that were raised in that
estimate. Number two, entitlement spending will go up. It will go up by
the number of beneficiaries coming to these programs, it will go up by
inflation, and medical inflation in Medicare's instance. And we do take
care of putting into the baseline the new prescription drug benefit.
I would like to just quickly go through the summary of what this
legislation actually accomplishes in a very, very quick order. Number
one, what this budget does is it raises the budget to the point of law
by making a joint budget resolution so we do not have these stalemates
at the end of Congress every year like we do.
It also has a one-page budget so it is easier for the Congress, the
House, the Senate, and the President to agree on a budget at the
beginning of the session. It also abolishes the practice of designating
everything as emergencies. One of the problems we have is we can
designate just about anything an emergency. The census was designated
an emergency. We knew that one was coming.
So what we are trying to do is tighten up that definition so true
emergencies are designated emergencies. We go to biennial budget so
that we do our budgeting in the first year of our cycle, and then in
the second year we conduct oversight. We think that Congress does not
do nearly enough government oversight into how our taxpayers' dollars
are being spent.
We also have government shut-down protection so that, if for some
reason we have this brinksmanship which has been common around here, we
do not hold hostage government workers and shut down the government. We
keep things going with an automatic continuing resolution.
We also have very important spending caps which we have been talking
about on discretionary and entitlement spending. It will take two-
thirds of a vote in Congress to break those spending caps. This is the
real heart of this bill so that we do not violate our spending caps.
Because all too often, we will pass a budget, we will set spending
caps, lo and behold, a couple months go by, we break the spending caps.
In this bill, it takes two-thirds of the vote in the House and Senate
to break those spending caps. We also protect ourselves from the point
of order so we here in this body, unlike those in the other body who
can have this power, we can raise points of order if they try to waive
points of the Budget Act so that House Members can also play a role in
enforcing the budget act. We also make sure we amend the Byrd Rule so
we do not have temporary tax cuts. That was an arcane rule that
occurred that is now giving us the largest tax increase we will ever
see if we fail to make these tax cuts permanent.
We also try and clean up this omnibus appropriation problem so we do
not bundle all these big bills that we have at the end of the cycle.
For instance, last year 7 appropriations bills bundled into one bill.
Each of us on the floor had one vote up or down on half of the
discretionary spending in the Federal Government.
We also have very important spending control provisions. We talked
about some of these. Discretionary caps, having the ability to save
money when you
[[Page H5042]]
bring amendments to the floor to stop wasteful spending. Having the
ability to make sure that we can give the President the power to take
bad, wasteful spending out of the budget.
We also have an amendment that did pass already which is a commission
to look at all of our Federal programs with respect to our earned
entitlements, but also have a sunset in law of our programs on a
rotating basis so that Congress actually does its oversight to see if
the programs we have in our Federal Government are really meeting the
spirit of the original intent of the law or whether they are really
serving our constituents and serving our taxpayers so that we can make
sure that no wasteful spending continues in this government.
{time} 2215
The problem we have basically is that our budget process is not a
clean process. It is not a functional process. It is not honest. It is
not transparent, and we want to make it so.
We want to pass a budget and stick to a budget. We want to make sure
that the American people really see how their money is being spent, and
we want to make sure that those of us who want to see wasteless
spending go away have the tools in which we can do that. That is what
we are trying to accomplish with this bill.
What we simply want is the ability to treat our constituents' money
like it ought to be treated. It is their money. That is what we are
trying to do. It is a very big bill and project. We have 102
cosponsors. I urge passage of this substitute amendment.
Mr. SPRATT. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman
from Virginia (Mr. Moran).
Mr. MORAN of Virginia. Mr. Chairman, I do not know what is happening
to this institution. We work a couple of days a week. We cannot even
get a budget resolution passed. It is overdue by months, and then we
get these amendments that are really designed to eliminate the
appropriations process, as though we have no capacity to apply judgment
to the decisions that we have to make.
Would it not be nice if the world was as simple as this? Let us just
impose entitlement caps. Let us give it all over to the President, for
example. We cite waste, fraud and abuse as though that is the problem.
The Republican party controls the White House. They control the Senate.
They control the House. Eliminate waste, fraud and abuse if that is the
problem.
The real problem is that we are not willing to make the tough
decisions that have to be made, and now they are suggesting an
entitlement cap.
We have done an analysis of this entitlement cap. Over the next
decade it would take $674 billion out of Medicare, $332 billion out of
Medicaid, $100 billion out of Federal civilian retirement, $60 billion
out of unemployment comp, $56 billion out of military retirement. I
could go on and on, $45 billion out of veterans benefits, $11 billion
out of TRICARE For Life, and on and on.
This is not the way to run a government. These are important
programs. Make the tough decisions. To put in an amendment like this
that supposedly limits entitlement programs so that we are going to all
of the sudden solve the budget crisis, we have a budget crisis because
we are not willing to balance our responsibilities to limit tax cuts
and to limit spending at the same time. We know that is what has to be
done, but now we are in a budget crisis. We are going to have $4.5
trillion of debt, and the answer is not to make it worse by putting in
an entitlement cap.
This is one of the worst amendments that we have had presented all
night in a long string of simplistic, irresponsible amendments that
consumes our time. We will have another opportunity to take another
shot at this.
Mr. HENSARLING. Mr. Chairman, I yield myself 15 seconds.
I am not sure which bill the gentleman was reading. He appears not to
have read this one. Every single government program grows some by a
factor of inflation. No government program is cut here, only the rate
of growth. However, the gentleman and other gentlemen and ladies on
that side of the aisle in the last budget resolution voted for an extra
trillion dollars in spending.
Mr. Chairman, I yield 2 minutes to the gentleman from Indiana (Mr.
Chocola), a coauthor.
Mr. CHOCOLA. Mr. Chairman, I thank the gentleman for yielding me
time.
Mr. Chairman, I came to Congress from the business world, and my
first impression when I got here is that Congress, as a whole, is a lot
like 535 general managers with no CEO. With all due respect to the
Speaker and our leadership, there is no individual who can set spending
priorities in the face of limited resources. We do not have a
leadership problem here. We have a process problem.
When we take the facts, combined together that our budget process
does not contain any of the realities that every family and every
business in America faces; combined with the fact that our process is
not enforceable; combined with the fact that our process only measures
success by how much money we spend, never by how well we spend it;
combined with the fact that people in this Chamber will come down here
with a straight face and say that smaller increases are actually cuts;
if we combine those facts with human nature, what we have is a lack of
fiscal discipline and runaway spending.
I used to be a chairman of a publicly traded company, and if I
accounted for and budgeted for my business the way government accounts
and budgets for its business, I would, at best, be bankrupt and fired.
I would more than likely be in jail. I find it very ironic when Members
of Congress lecture business executives about truth in accounting and
the importance of integrity in financial disclosure.
Mr. Chairman, what we need is a budget process that provides a
framework of discipline. It simply fixes the process. It strengthens
our enforcement tools. It requires truth in accounting, increases
accountability and combats waste, fraud and abuse, and this is exactly
what this amendment does. I encourage all of my colleagues to support
it.
Mr. SPRATT. Mr. Chairman, I yield 2 minutes to the gentleman from
North Dakota (Mr. Pomeroy).
Mr. POMEROY. Mr. Chairman, we have a lot of energetic young
legislators earnestly talking about budgets. I have got some advice for
them. We do not have a budget this year. Their party, Republican party,
controls the White House. They are part of the House majority. Their
party controls the Senate. All these high-falutin ideas you bundled in
this bill are not going to go anywhere. You ought to put your efforts
where it might matter, getting a budget this year, getting a budget
this year. The majority cannot produce a budget this year, and yet they
run us out on a day-long adventure full of ill-founded ideas.
The gentleman from Texas speaks movingly about a budget, but in
reality what he is proposing is very close scrutiny. I do not think I
have seen a more irresponsible budget plan proposed in this House. He
would propose excruciating cuts on essential programs while allowing
any tax cut that might ever be passed irrespective of consequences to
the deficit to go without check.
What are the spending cuts proposed? The Center For Budget Priorities
analyzes that over 10 years, $674 billion in Medicare reduction. At
time when we are in the military conflict, they come after veterans
with a vengeance: military retirement, $56 billion in cuts; veterans
benefits, $45 billion in cuts; TRICARE For Life, $11 billion for cuts.
These are calculated on the proportional reductions that you have to
make across mandatory spending programs that I know do not stop there.
Nutrition programs for the little children of this country, reduced $19
billion in the gentleman's proposal. Cutting food for children.
Beyond that, student loans. At a time when our college tuitions are
soaring, as our families know all across the country, proportional
reductions would be $9 billion in student loan funding.
I believe this is a mean-spirited, ill-advised amendment. I urge my
colleagues to vote ``no.''
Mr. NUSSLE. Mr. Chairman, I yield myself such time as I may consume.
Let me just take a minute to respond briefly to one of the comments
from the gentleman, and we can have an honest disagreement about
substitute amendments and all sorts of things on
[[Page H5043]]
the floor today, but we do have a conference report on the budget. That
conference report on the budget was passed by the House of
Representatives. That conference report on the budget was deemed to be
the budget for the House of Representatives. The chairman of the
Committee on Appropriations is operating under that budget that was
passed by the House of Representatives. We have a budget.
What we are not sure we have is the other body. They have not acted.
They have not even brought it to a vote. I do not know what they are
doing. I can understand the gentleman's frustration. I share that
frustration. We hear that a certain party may be in the majority over
there, but from time to time that does not always manifest itself.
But we have a budget. We will operate under that budget. It is a
budget that ensures that we can strengthen our economy and keep it
growing; that we can protect our country; and that we can make sure
that our important priorities are funded. We have a budget. Those who
continue to say we do not have a budget, it is simply not correct.
The fact that the other body has not yet voted on a budget is for
them to answer, not for us to answer here tonight, and be that as it
may, let me just make one other point.
They are not arguing over the spending levels. The arguments are over
technical amendments that the other body put on to control their own
process because they were having a difficult time managing it, not
anything that binds the House. We are not bound by that particular
challenge that the other body is wrestling with.
We have a budget. It has been deemed the budget. We will operate
under that budget, and so I just wanted to correct the record and
remind all of us that we will continue to operate under the rules of
that budget.
Announcement by the Chairman Pro Tempore
The CHAIRMAN pro tempore (Mr. Walden of Oregon). Members are reminded
to refrain from improper references to the Senate.
Mr. NUSSLE. Mr. Chairman, I need a refresher. I keep referring to it
as the other body. What am I saying wrong? I want to know. When they do
not pass the budget, I guess I have been trying to be as polite as
possible.
The CHAIRMAN pro tempore. The gentleman is reminded not to refer to
Senate action or inaction, whether he calls it the Senate or the other
body.
Who yields time?
Mr. SPRATT. Mr. Chairman, I yield 15 seconds to the gentleman from
North Dakota (Mr. Pomeroy).
Mr. POMEROY. Mr. Chairman, I have no malice at my friends on the
other side, but this is no laughing matter. They do not have a budget
under the Budget Act without the House and the Senate passing versions,
coming to agreement in conference committee and passing the final
budget.
Mr. HENSARLING. Mr. Chairman, can I inquire as to the time I have
remaining?
The CHAIRMAN pro tempore. The gentleman from Texas (Mr. Hensarling)
has 4 minutes remaining.
Mr. HENSARLING. Mr. Chairman, I yield 3 minutes to the gentleman from
California (Mr. Cox), a coauthor of the amendment.
Mr. COX. Mr. Chairman, the House voted today to recognize and
commemorate the 40th anniversary of the Civil Rights Act of 1964, a law
that was approved with broad bipartisan support and that has proven its
worth in enforcing the principles of freedom and individual rights that
undergird our Nation.
We commemorate a much sadder anniversary today, the 30th anniversary
of the Budget Act of 1974. Unlike the Civil Rights Act, which was a
bipartisan achievement approved with over 80 percent of Republican
support and 62 percent of Democrat support, the 1974 Budget Act was
approved over the strong objections of Republicans. The results of the
Budget Act have been precisely what Republicans predicted.
The House Policy Committee, which I chair, criticized the current
budget process even before it took effect in 1973 and predicted
precisely the runaway spending it would enable.
In 1973, policy chairman John Rhodes issued a statement of the
official position of House Republicans that said, ``Any limitation on
expenditures should cover not only budgetary outlays handled through
the Appropriations Committee, but also programs funded separately from
the annual appropriations process.'' The 1974 Budget Act decided to
ignore that advice, and in every year since, we have suffered from
runaway Federal spending.
In 1975, after the first year, the Policy Committee issued another
statement reflecting on what a miserable failure the new Budget Act had
been in organizing the process. ``Major legislative efforts are
needed,'' the Policy Committee said at that time, ``to rein in
`uncontrollable' items and to establish a new pattern of legislative
authorizations and appropriations.'' The Congress has never yet fixed
this problem, and in every year since 1974, we have suffered from
runaway government spending.
This legislation is about protecting the right of Americans to see
their tax dollars wisely spent. It is about getting rid of a
legislative contraption that has proved over 30 years it is utterly
incapable of producing the budget that the minority wishes we had
between the House and Senate. It is about getting rid of a budget
process that has grown our Federal Government from less than $1
trillion when I first became a Member of Congress not many years ago to
over $2 trillion today.
Our economy has not doubled. Our population has not doubled, but what
has happened is our government is growing at rates that far outstrip
the economy which supports it.
This ongoing displacement of the private sector by government is
driven inexorably by the one-way leftward ratchet we euphemistically
refer to as the budget process.
It is time to junk this contraption which does not work. It is time
to protect the family budget. It is time to make the tough choices
between government and the people and bring fiscal sanity and honest
accounting back to Washington.
{time} 2230
It is time to vote ``aye'' on the Hensarling amendment.
Mr. SPRATT. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, I want to correct the record. Earlier I said that the
Center on Budget and Policy Priorities had done an analysis of this
proposal and found that it would cut entitlement programs like Medicare
and Medicare and TRICARE for Life by $1.8 trillion over the next 10
years. They have done a revised study. It was correct. They have
revised that study and their revised study shows that the cut will only
be $1.551 trillion. That is in entitlement programs. It comes out of
child nutrition, its comes out of TRICARE for Life, it comes out of
veterans benefits. Across the board people will be hurt.
I did not mention earlier the discretionary spending. Discretionary
spending in the Hensarling proposal would increase each year at 2.1
percent a year. At the end of the 10-year period of time, because they
take it out of the full 10-year time frame, this substitute would limit
discretionary spending to $220 billion below what the President has
recommended. And one of the reasons we do not have a budget right now
is we are still struggling with the numbers the President has prepared,
trying to bring it within the framework of what he has recommended.
So this would have severe consequences; and it would have severe
consequences upon, in the words of the AARP, the health and economic
security of millions of vulnerable Americans.
Finally, to remind everyone, if you voted against the automatic
continuing resolution, if you voted against the joint budget resolution
making the budget resolution a law signed by the President, if you are
opposed to biennial budgeting, if you voted against expedited
rescission, this bill reinstates all of those, and is an additional
reason to oppose it.
Mr. NUSSLE. Mr. Chairman, I yield 2 minutes to the gentleman from
Arizona (Mr. Shadegg), even though I claimed the time in opposition.
Mr. SHADEGG. Mr. Chairman, I thank the gentleman for yielding me this
time so graciously, and I want to compliment him on his service as the
Committee on the Budget chairman. I think he has done an exemplary job
in a very, very difficult position.
I want to point out that in my tenure here in the Congress, and I am
in my
[[Page H5044]]
ninth year, I have worked very, very hard to honor the budget and
support the budget we adopt. Indeed, early in my tenure in Congress, I
served on that Committee on the Budget under John Kasich, and the
current chairman of the committee was on the committee at the time. We
labored long and hard to produce a workable budget. But the sad truth
is, and I doubt if all of our colleagues here in Congress, much less
the people across America, understand that that budget, while it is
always a product that entails a lot of work, is almost never honored.
In 1995 and 1996 we honored the budget that we adopted. But from 1996
to this year, we dishonor that budget. We outspend that budget year
after year. And that is why I rise in strong support of the Family
Budget Protection Act, because the reality is that the hard work that
the gentleman from Iowa (Mr. Nussle) and the members of his committee
put in to write a budget and to craft it and to have it work becomes
meaningless, or at least near meaningless as we go through the process.
Because, quite frankly, it is not law. It is only the resolution,
hopefully, of the two bodies. And so its goes out the door.
That is why my colleague, the gentleman from Texas (Mr. Hensarling),
is proposing that we make the budget resolution not a resolution but a
law, so that all the work that Chairman Nussle and members of his
committee put in works, and so that we can tell the American people
that we are going to live within a budget.
But how do we break that budget? We break that budget year after year
after year after year by trick and game. One of those has been talked
about here tonight, and that is emergency spending. We called the
census, which is commanded by the U.S. Constitution, the decennial
census; we called that emergency spending and we spent outside the
budget.
The American people, I think, get it. They think we should have a
budget that we live within, a budget that we honor and that we should
not spend at two or three times the rate of growth of the family
budget. So I rise in strong support of the Family Budget Protection
Act.
Mr. HENSARLING. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, if people will read this legislation, this puts a cap
on the growth of the government. Every single government program will
grow under this legislation.
After 6 hours of debate, we have heard much angst, anxiety, and grave
concern over the deficit, over explosive spending, over a broken budget
process. But, unfortunately, we have also heard that we just cannot do
anything about it; there are committee jurisdiction issues, there are
complexity issues, there are balance of power issues. When do we
address family budget issues?
This debate before the House boils down to two simple questions.
Number one, does this body believe once a budget is passed it should be
enforced? Yes or no. Number two, does this body believe that the
Federal budget should not be allowed to grow faster than the family
budget? In other words, should there be any limit whatsoever placed on
the government?
For the sake of the family budget, for the sake of personal freedom,
for the sake of America's future, I hope the answer is yes and people
support the Family Budget Protection amendment.
Mr. NUSSLE. Mr. Chairman, I yield myself such time as I may consume
to close, and I first want to commend the gentleman from Texas for his
work, and all of the Members who have helped him and labored through so
many of these provisions. They have done a good job. They have done an
excellent job.
I heard someone refer to it as the gold standard of budget process
reform. It may very well be. It is not perfect, there is no question.
There is no such thing as perfect. My job tonight is to defend the
committee product, which is the underlying bill; so I gently oppose the
gentleman's amendment because so many of these things look very
familiar to me. I voted for a few of them earlier tonight. And I think
a couple of them I might even have had an opportunity to write at an
earlier time. But I gently oppose them.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore (Mr. Walden of Oregon).
The question is on the amendment in the nature of a substitute
offered by the gentleman from Texas (Mr. Hensarling).
The question was taken; and the Chairman pro tempore announced that
the noes appeared to have it.
Mr. HENSARLING. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings
on the amendment in the nature of a substitute offered by the gentleman
from Texas (Mr. Hensarling) will be postponed.
It is now in order to consider amendment No. 17 printed in House
Report 108-566.
Amendment in the Nature of a Substitute No. 17 Offered by Mr. Kirk
Mr. KIRK. Mr. Chairman, I offer an amendment in the nature of a
substitute.
The CHAIRMAN pro tempore. The Clerk will designate the amendment in
the nature of a substitute.
The text of the amendment in the nature of a substitute is as
follows:
Amendment in the nature of a substitute No. 17 offered by
Mr. Kirk:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Deficit
Control Act of 2004''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
Sec. 3. Protection of social security and medicare benefits.
TITLE I--A SIMPLIFIED BUDGET
Subtitle A--Rainy Day Fund for Emergencies
Sec. 101. Purpose.
Sec. 102. Repeal of adjustments for emergencies.
Sec. 103. OMB emergency criteria.
Sec. 104. Development of guidelines for application of emergency
definition.
Sec. 105. Reserve fund for emergencies in President's budget.
Sec. 106. Adjustments and reserve fund for emergencies in concurrent
budget resolutions.
Sec. 107. Up-to-date tabulations.
Sec. 108. Prohibition on amendments to emergency reserve fund.
Sec. 109. Content of budget resolutions.
Subtitle B--The Baseline
Sec. 111. Elimination of inflation adjustment.
Sec. 112. The President's budget.
Sec. 113. The congressional budget.
Sec. 114. Congressional budget office reports to committees.
Sec. 115. Treatment of emergencies.
TITLE II--IMPLEMENTING FEDERAL SPENDING DISCIPLINE
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
Sec. 201. Spending caps on growth of entitlements and mandatories.
Sec. 202. Exempt programs and activities.
Sec. 203. Exceptions, limitations, and special rules.
Sec. 204. Point of order.
Sec. 205. Technical and conforming amendments.
Subtitle B--Discretionary Spending Limits
Sec. 211. Enforcing discretionary spending limits.
Sec. 212. Annual joint resolution establishing discretionary spending
limits.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE.
Subtitle A--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
Sec. 301. Enhanced consideration of certain proposed rescissions.
Subtitle B--Commission to Eliminate Waste, Fraud, and Abuse
Sec. 311. Establishment of Commission.
Sec. 312. Duties of the Commission.
Sec. 313. Powers of the Commission.
Sec. 314. Commission personnel matters.
Sec. 315. Termination of the Commission.
Sec. 316. Authorization of appropriations.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
Sec. 401. Civil Service Retirement System.
Sec. 402. Central Intelligence Agency Retirement and Disability System.
Sec. 403. Foreign Service Retirement and Disability System.
Sec. 404. Public Health Service Commissioned Corps Retirement System.
Sec. 405. National Oceanic and Atmospheric Administration Commissioned
Officer Corps Retirement System.
Sec. 406. Coast Guard Military Retirement System.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
Sec. 411. Federal employees health benefits fund.
[[Page H5045]]
Sec. 412. Funding uniformed services health benefits for all retirees.
Sec. 413. Effective date.
Subtitle C--Limit on the Public Debt
Sec. 421. Limit on public debt.
TITLE V--PAYGO EXTENSION
Sec. 501. PAYGO extension.
SEC. 2. EFFECTIVE DATE.
Except as otherwise specifically provided, this Act and the
amendments made by this Act shall become effective on the
date of enactment of this Act and shall apply with respect to
fiscal years beginning after September 30, 2005.
SEC. 3. PROTECTION OF SOCIAL SECURITY AND MEDICARE BENEFITS.
Notwithstanding any other provision in law, nothing in
titles I through V shall be construed to reduce benefits
entitled to Americans through social security and medicare.
TITLE I--A SIMPLIFIED BUDGET
Subtitle A--Rainy Day Fund for Emergencies
SEC. 101. PURPOSE.
The purposes of this subtitle are to--
(1) develop budgetary and fiscal procedures for
emergencies;
(2) subject spending for emergencies to budgetary
procedures and controls; and
(3) establish criteria for determining compliance with
emergency requirements.
SEC. 102. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.
(a) Elimination of Emergency Designation.--Sections 252(e)
and 252(d)(4)(B) of the Balanced Budget and Emergency Deficit
Control Act of 1985 are repealed.
(b) Elimination of Adjustments.--Section 314 of the
Congressional Budget Act of 1974 is repealed.
(c) Conforming Amendment.--Clause 2 of rule XXI of the
Rules of the House of Representatives is amended by repealing
paragraph (e) and by redesignating paragraph (f) as paragraph
(e).
SEC. 103. OMB EMERGENCY CRITERIA.
(a) Definition of Emergency.--Section 3 of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by adding at the end the following new paragraph:
``(11)(A) The term `emergency' means a situation that--
``(i) 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
``(ii) is unanticipated.
``(B) As used in subparagraph (A), the term `unanticipated'
means that the situation is--
``(i) sudden, which means quickly coming into being or not
building up over time;
``(ii) urgent, which means a pressing and compelling need
requiring immediate action;
``(iii) unforeseen, which means not predicted or
anticipated as an emerging need; and
``(iv) temporary, which means not of a permanent
duration.''.
(b) Conforming Amendment.--Section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 is amended
by adding at the end the following new paragraph:
``(20) The term `emergency' has the meaning given to such
term in section 3 of the Congressional Budget and Impoundment
Control Act of 1974.''.
SEC. 104. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF
EMERGENCY DEFINITION.
Not later than 5 months after the date of enactment of this
Act, the chairmen of the Committees on the Budget (in
consultation with the President) shall, after consulting with
the chairmen of the Committees on Appropriations and
applicable authorizing committees of their respective Houses
and the Directors of the Congressional Budget Office and the
Office of Management and Budget, jointly publish in the
Congressional Record guidelines for application of the
definition of emergency set forth in section 3(11) of the
Congressional Budget and Impoundment Control Act of 1974.
SEC. 105. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.
Section 1105(f) of title 31, United States Code is amended
by adding at the end the following new sentences: ``Such
budget submission shall also comply with the requirements of
section 316(b) of the Congressional Budget Act of 1974 and,
in the case of any budget authority requested for an
emergency, such submission shall include a detailed
justification of why such emergency is an emergency within
the meaning of section 3(11) of the Congressional Budget Act
of 1974.''.
SEC. 106. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN
CONCURRENT BUDGET RESOLUTIONS.
(a) Emergencies.--Title III of the Congressional Budget Act
of 1974 is amended by adding at the end the following new
section:
``emergencies
``Sec. 316. (a) Adjustments.--
``(1) In general.--After the reporting of a bill or joint
resolution or the submission of a conference report thereon
that provides budget authority for any emergency as
identified pursuant to subsection (d) that is not covered by
subsection (c)--
``(A) the chairman of the Committee on the Budget of the
House of Representatives or the Senate shall determine and
certify, pursuant to the guidelines referred to in section
104 of the Deficit Control Act of 2004, the portion (if any)
of the amount so specified that is for an emergency within
the meaning of section 3(11); and
``(B) such chairman shall make the adjustment set forth in
paragraph (2) for the amount of new budget authority (or
outlays) in that measure and the outlays flowing from that
budget authority.
``(2) Matters to be adjusted.--The adjustments referred to
in paragraph (1) are to be made to the allocations made
pursuant to the appropriate concurrent resolution on the
budget pursuant to section 302(a) and shall be in an amount
not to exceed the amount reserved for emergencies pursuant to
the requirements of subsection (b).
``(b) Reserve Fund for Emergencies.--
``(1) Amounts.--The amount set forth in the reserve fund
for emergencies (other than those covered by subsection (c))
for budget authority and outlays for a fiscal year pursuant
to section 301(a)(4) shall equal--
``(A) the average of the enacted levels of budget authority
for emergencies (other than those covered by subsection (c))
in the 5 fiscal years preceding the current year; and
``(B) the average of the levels of outlays for emergencies
in the 5 fiscal years preceding the current year flowing from
the budget authority referred to in subparagraph (A), but
only in the fiscal year for which such budget authority first
becomes available for obligation.
``(2) Average levels.--For purposes of paragraph (1), the
amount used for a fiscal year to calculate the average of the
enacted levels when one or more of such 5 preceding fiscal
years is any of fiscal years 2000 through 2004 is as follows:
the amount of enacted levels of budget authority and the
amount of new outlays flowing therefrom for emergencies, but
only in the fiscal year for which such budget authority first
becomes available for obligation for each of such 5 fiscal
years, which shall be determined by the Committees on the
Budget of the House of Representatives and the Senate after
receipt of a report on such matter transmitted to such
committees by the Director of the Congressional Budget Office
6 months after the date of enactment of this section and
thereafter in February of each calendar year.
``(c) Treatment of Emergencies To Fund Certain Military
Operations and Other Extraordinary and Critical Needs.--
Whenever the Committee on Appropriations reports any bill or
joint resolution that provides budget authority for any
emergency that is a threat to national security and the
funding of which carries out a military operation authorized
by a declaration of war or a joint resolution authorizing the
use of military force, or for any other emergency designated
by the President and the Congress as relating to
extraordinary and critical needs, and the report accompanying
that bill or joint resolution, pursuant to subsection (d),
identifies any provision that increases outlays or provides
budget authority (and the outlays flowing therefrom) for such
emergency, the enactment of which would cause the total
amount of budget authority or outlays provided for
emergencies for the budget year in the concurrent resolution
on the budget (pursuant to section 301(a)(4)) to be exceeded,
such bill or joint resolution may be considered in the House
or the Senate, as the case may be.
``(d) Committee Notification of Emergency Legislation.--
Whenever the Committee on Appropriations or any other
committee of either House (including a committee of
conference) reports any bill or joint resolution that
provides budget authority for any emergency, the report
accompanying that bill or joint resolution (or the joint
explanatory statement of managers in the case of a conference
report on any such bill or joint resolution) shall identify
all provisions that provide budget authority and the outlays
flowing therefrom for such emergency and include a statement
of the reasons why such budget authority meets the definition
of an emergency pursuant to the guidelines referred to in
section 104 of the Deficit Control Act of 2004.''.
(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 315 the following new item:
``Sec. 316. Emergencies.''.
SEC. 107. UP-TO-DATE TABULATIONS.
Section 308(b)(2) of the Congressional Budget Act of 1974
is amended by striking ``and'' at the end of subparagraph
(B), by striking the period at the end of subparagraph (C)
and inserting ``; and'', and by adding at the end the
following new subparagraph:
``(D) shall include an up-to-date tabulation of amounts
remaining in the reserve fund for emergencies.''.
SEC. 108. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE
FUND.
(a) Point of Order.--Section 305 of the Congressional
Budget Act of 1974 is amended by adding at the end the
following new subsection:
``(e) Point of Order Regarding Emergency Reserve Fund.--It
shall not be in order in the House of Representatives or in
the Senate to consider an amendment to a concurrent
resolution on the budget which changes the amount of budget
authority and outlays set forth in section 301(a)(4) for
emergency reserve fund.''.
(b) Technical Amendment.--(1) Section 904(c)(1) of the
Congressional Budget Act of
[[Page H5046]]
1974 is amended by inserting ``305(e),'' after
``305(c)(4),''.
(2) Section 904(d)(2) of the Congressional Budget Act of
1974 is amended by inserting ``305(e),'' after
``305(c)(4),''.
SEC. 109. CONTENT OF BUDGET RESOLUTIONS.
Section 301(a)(4) of the Congressional Budget Act of 1974
is amended by inserting before the semicolon at the end the
following: ``, and for emergencies (for the reserve fund in
section 316(b) and for military operations in section
316(c))''.
Subtitle B--The Baseline
SEC. 111. ELIMINATION OF INFLATION ADJUSTMENT.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended--
(1) in paragraph (1) by striking ``for inflation as
specified in paragraph (5),''; and
(2) by striking paragraph (5) and redesignating paragraph
(6) as paragraph (5).
SEC. 112. THE PRESIDENT'S BUDGET.
(a) Paragraph (5) of section 1105(a) of title 31, United
States Code, is amended to read as follows:
``(5) except as provided in subsection (b) of this section,
estimated expenditures and appropriations for the current
year and estimated expenditures and proposed appropriations
the President decides are necessary to support the Government
in the fiscal year for which the budget is submitted and the
4 fiscal years following that year, and, except for detailed
budget estimates, the percentage change from the current year
to the fiscal year for which the budget is submitted for
estimated expenditures and for appropriations.''.
(b) Section 1105(a)(6) of title 31, United States Code, is
amended to read as follows:
``(6) estimated receipts of the Government in the current
year and the fiscal year for which the budget is submitted
and the 4 fiscal years after that year under--
``(A) laws in effect when the budget is submitted; and
``(B) proposals in the budget to increase revenues,
and the percentage change (in the case of each category
referred to in subparagraphs (A) and (B)) between the current
year and the fiscal year for which the budget is submitted
and between the current year and each of the 9 fiscal years
after the fiscal year for which the budget is submitted.''.
(c) Section 1105(a)(12) of title 31, United States Code, is
amended to read as follows:
``(12) for each proposal in the budget for legislation that
would establish or expand a Government activity or function,
a table showing--
``(A) the amount proposed in the budget for appropriation
and for expenditure because of the proposal in the fiscal
year for which the budget is submitted;
``(B) the estimated appropriation required because of the
proposal for each of the 4 fiscal years after that year that
the proposal will be in effect; and
``(C) the estimated amount for the same activity or
function, if any, in the current fiscal year,
and, except for detailed budget estimates, the percentage
change (in the case of each category referred to in
subparagraphs (A), (B), and (C)) between the current year and
the fiscal year for which the budget is submitted.''.
(d) Section 1105(a)(18) of title 31, United States Code, is
amended by inserting ``new budget authority and'' before
``budget outlays''.
(e) Section 1105(a) of title 31, United States Code, is
amended by adding at the end the following new paragraphs:
``(35) a comparison of levels of estimated expenditures and
proposed appropriations for each function and subfunction in
the current fiscal year and the fiscal year for which the
budget is submitted, along with the proposed increase or
decrease of spending in percentage terms for each function
and subfunction.
``(36) a table on sources of growth in total direct
spending under current law and as proposed in this budget
submission for the budget year and the ensuing 9 fiscal
years, which shall include changes in outlays attributable to
the following: cost-of-living adjustments; changes in the
number of program recipients; increases in medical care
prices, utilization and intensity of medical care; and
residual factors.''.
(f) Section 1109(a) of title 31, United States Code, is
amended by inserting after the first sentence the following
new sentence: ``For discretionary spending, these estimates
shall assume the levels set forth in the discretionary
spending limits under section 251(b) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as adjusted, for
the appropriate fiscal years (and if no such limits are in
effect, these estimates shall assume the adjusted levels for
the most recent fiscal year for which such levels were in
effect).''.
SEC. 113. THE CONGRESSIONAL BUDGET.
Section 301(e) of the Congressional Budget Act of 1974 (as
amended by section 103) is further amended--
(1) in paragraph (1), by inserting at the end the
following: ``The basis of deliberations in developing such
concurrent resolution shall be the estimated budgetary levels
for the preceding fiscal year. Any budgetary levels pending
before the committee and the text of the concurrent
resolution shall be accompanied by a document comparing such
levels or such text to the estimated levels of the prior
fiscal year. Any amendment offered in the committee that
changes a budgetary level and is based upon a specific policy
assumption for a program, project, or activity shall be
accompanied by a document indicating the estimated amount for
such program, project, or activity in the current year.'';
and
(2) in paragraph (2), by striking ``and'' at the end of
subparagraph (H) (as redesignated), by striking the period
and inserting ``; and'' at the end of subparagraph (I) (as
redesignated), and by adding at the end the following new
subparagraph:
``(J) a comparison of levels for the current fiscal year
with proposed spending and revenue levels for the subsequent
fiscal years along with the proposed increase or decrease of
spending in percentage terms for each function.''.
SEC. 114. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.
(a) The first sentence of section 202(e)(1) of the
Congressional Budget Act of 1974 is amended by inserting
``compared to comparable levels for the current year'' before
the comma at the end of subparagraph (A) and before the comma
at the end of subparagraph (B).
(b) Section 202(e)(1) of the Congressional Budget Act of
1974 is amended by inserting after the first sentence the
following new sentence: ``Such report shall also include a
table on sources of spending growth in total direct spending
for the budget year and the ensuing 4 fiscal years, which
shall include changes in outlays attributable to the
following: cost-of-living adjustments; changes in the number
of program recipients; increases in medical care prices,
utilization and intensity of medical care; and residual
factors.''.
(c) Section 308(a)(1)(B) of the Congressional Budget Act of
1974 is amended by inserting ``and shall include a comparison
of those levels to comparable levels for the current fiscal
year'' before ``if timely submitted''.
(d) Section 202(e) of the Congressional Budget Act of 1974
is amended by adding at the end the following new paragraph:
``(4) On or before February 15 of each year, the Director
shall submit to the Committees on the Budget of the House of
Representatives and the Senate, a report for the fiscal year
ending on September 30 of the preceding year, with respect to
entitlement spending, including (A) a comparison of actual
spending for entitlements, on an account by account basis,
with projected spending for such entitlements assumed in the
concurrent resolution of the budget for that fiscal year and
(B) an identification of those entitlements for which the
actual spending exceeded the projected spending.''.
SEC. 115. TREATMENT OF EMERGENCIES.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (as amended by section 111) is further
amended by adding at the end the following new paragraph:
``(6) Emergencies.--Budgetary resources for emergencies
shall be at the level provided in the reserve fund for
emergencies for that fiscal year pursuant to section
301(a)(4) of the Congressional Budget Act of 1974.''.
TITLE II--IMPLEMENTING FEDERAL SPENDING DISCIPLINE
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS AND
MANDATORIES.
(a) Control of Entitlements and Mandatories.--The Balanced
Budget and Emergency Deficit Control Act of 1985 is amended
by adding after section 252 the following new section:
``SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING.
``(a) Cap on Growth of Entitlements.--Effective for fiscal
year 2006 and for each ensuing fiscal year, the total level
of direct spending for all direct spending programs,
projects, and activities (excluding social security,
medicare, and net interest spending) for any such fiscal year
shall not exceed the total level of spending for all such
programs, projects, and activities for the previous fiscal
year after the direct spending for each such program,
project, or activity is increased by--
``(1) the higher of the change in the Consumer Price Index
for All Urban Consumers or the inflator (if any) applicable
to that program, project, or activity; and
``(2) the growth in eligible population for such program,
project, or activity.
``(b) Sequestration.--Within 15 days after Congress
adjourns to end a session (other than of the second session
of the One Hundred Eighth Congress), and on the same day as a
sequestration (if any) under section 251, there shall be a
sequestration to reduce the amount of direct spending for the
fiscal year beginning in the year the Congress adjourns by
any amount necessary to reduce such spending to the level set
forth in subsection (a) unless that amount is less than
$250,000,000.
``(c) Uniform Reductions; Limitations.--The amount required
to be sequestered for the fiscal year under subsection (a)
shall be obtained from nonexempt direct spending accounts by
actions taken in the following order:
``(1) First.--The reductions in the programs specified in
section 256(a) (National Wool Act and special milk), section
256(b) (guaranteed student loans), and section 256(c) (foster
care and adoption assistance) shall be made.
[[Page H5047]]
``(2) Second.--Any additional reductions that may be
required shall be achieved by reducing each remaining
nonexempt direct spending account by the uniform percentage
necessary to achieve those additional reductions, except
that--
``(A) the low-income programs specified in section 256(d)
shall not be reduced by more than 2 percent; and
``(B) the retirement and veterans benefits specified in
sections 256(f), (g), and (h) shall not be reduced by more
than 2 percent in the manner specified in that section.
The limitations set forth in subparagraphs (A) and (B) shall
be applied iteratively, and after each iteration the uniform
percentage applicable to all other programs under this
paragraph shall be increased (if necessary) to a level
sufficient to achieve the reductions required by this
paragraph.''.
(b) Table of Contents Amendment.--The table of contents set
forth in 250(a) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by adding after the item
relating to section 252 the following new item:
``Sec. 252A. Enforcing controls on direct spending.''.
SEC. 202. EXEMPT PROGRAMS AND ACTIVITIES.
Section 255 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
``(a) Social Security Benefits; Tier I Railroad Retirement
Benefits; and Medicare Benefits.--(1) Benefits payable under
the old-age, survivors, and disability insurance program
established under title II of the Social Security Act, and
benefits payable under section 3(a), 3(f)(3), 4(a), or 4(f)
of the Railroad Retirement Act of 1974, shall be exempt from
reduction under any order issued under this part.
``(2) Payments made under title XVIII (relating to medicare
of the Social Security Act shall be exempt from reduction
under any order issued under this part.
``(b) Descriptions and Lists.--The following budget
accounts or activities shall be exempt from sequestration:
``(1) net interest;
``(2) all payments to trust funds from excise taxes or
other receipts or collections properly creditable to those
trust funds;
``(3) all payments from one Federal direct spending budget
account to another Federal budget account; and all
intragovernmental funds including those from which funding is
derived primarily from other Government accounts, except to
the extent that such funds are augmented by direct
appropriations for the fiscal year for which the order is in
effect;
``(4) activities resulting from private donations,
bequests, or voluntary contributions to the Government;
``(5) payments from any revolving fund or trust-revolving
fund (or similar activity) that provides deposit insurance or
other Government insurance, Government guarantees, or any
other form of contingent liability, to the extent those
payments result from contractual or other legally binding
commitments of the Government at the time of any
sequestration;
``(6) credit liquidating and financing accounts;
``(7) the following accounts, which largely fulfill
requirements of the Constitution or otherwise make payments
to which the Government is committed:
``Administration of Territories, Northern Mariana Islands
Covenant grants (14-0412-0-1-806);
``Armed Forces Retirement Home Trust Fund, payment of
claims (84-8930-0-7-705);
``Bureau of Indian Affairs, miscellaneous payments to
Indians (14-2303-0-1-452);
``Bureau of Indian Affairs, miscellaneous trust funds,
tribal trust funds (14-9973-0-7-999);
``Claims, defense;
``Claims, judgments, and relief act (20-1895-0-1-806);
``Compact of Free Association, economic assistance pursuant
to Public Law 99-658 (14-0415-0-1-806);
``Compensation of the President (11-0001-0-1-802);
``Customs Service, miscellaneous permanent appropriations
(20-9992-0-2-852);
``Eastern Indian land claims settlement fund (14-2202-0-1-
806);
``Farm Credit Administration, Limitation on Administration
Expenses (78-4131-0-3-351);
``Farm Credit System Financial Assistance Corporation,
interest payments (20-1850-0-1-351);
``Internal Revenue collections of Puerto Rico (20-5737-0-2-
852);
``Panama Canal Commission, operating expenses and capital
outlay (95-5190-0-2-403);
``Payments of Vietnam and USS Pueblo prisoner-of-war claims
(15-0104-0-1-153);
``Payments to copyright owners (03-5175-0-2-376);
``Payments to health care trust funds (75-0580-0-1-571);
``Payments to social security trust funds (75-0404-0-1-
651);
``Payments to the United States territories, fiscal
assistance (14-0418-0-1-801);
``Payments to widows and heirs of deceased Members of
Congress (00-0215-0-1-801);
``Pension Benefit Guaranty Corporation Fund (16-4204-0-3-
601);
``Salaries of Article III judges;
``Washington Metropolitan Area Transit Authority, interest
payments (46-0300-0-1-401);
``(8) the following noncredit special, revolving, or trust-
revolving funds:
``Coinage profit fund (20-5811-0-2-803);
``Comptroller of the Currency;
``Director of the Office of Thrift Supervision;
``Exchange Stabilization Fund (20-4444-0-3-155);
``Federal Housing Finance Board;
``Foreign Military Sales trust fund (11-82232-0-7-155);
``National Credit Union Administration, central liquidating
facility (25-4470-0-3-373);
``National Credit Union Administration, credit union
insurance fund (25-4468-0-3-373);
``National Credit Union Administration operating fund (25-
4056-0-3-373); and
``Resolution Trust Corporation Revolving Fund (22-4055-0-3-
373);
``(9) Thrift Savings Fund;
``(10) appropriations for the District of Columbia to the
extent they are appropriations of locally raised funds;
``(11)(A) any amount paid as regular unemployment
compensation by a State from its account in the Unemployment
Trust Fund (established by section 904(a) of the Social
Security Act);
``(B) any advance made to a State from the Federal
unemployment account (established by section 904(g) of such
Act) under title XII of such Act and any advance appropriated
to the Federal unemployment account pursuant to section 1203
of such Act; and
``(C) any payment made from the Federal Employees
Compensation Account (as established under section 909 of
such Act) for the purpose of carrying out chapter 85 of title
5, United States Code, and funds appropriated or transferred
to or otherwise deposited in such Account;
``(12)(A) FDIC, Bank Insurance Fund (51-4064-0-3-373);
``(B) FDIC, FSLIC Resolution Fund (51-4065-0-3-373); and
``(C) FDIC, Savings Association Insurance Fund (51-4066-0-
3-373); and
``(13) Food Stamp Programs (12-3505-0-1-605).
``(c) Federal Retirement and Disability Accounts.--The
following Federal retirement and disability accounts shall be
exempt from reduction under any order issued under this part:
``Civil service retirement and disability fund (24-8135-0-
7-602).
``Black Lung Disability Trust Fund (20-8144-0-7-601).
``Foreign Service Retirement and Disability Fund (19-8186-
0-7-602).
``District of Columbia Judicial Retirement and Survivors
Annuity Fund (20-8212-0-7-602).
``Judicial Survivors' Annuities Fund (10-8110-0-7-602).
``Payments to the Railroad Retirement Accounts (60-0113-0-
1-601).
``Tax Court Judges Survivors Annuity Fund (23-8115-0-7-
602).
``Employees Life Insurance Fund (24-8424-0-8-602).
``(d) Federal Administrative Expenses.--
``(1) Notwithstanding any provision of law other than
paragraph (3), administrative expenses incurred by the
departments and agencies, including independent agencies, of
the Government in connection with any program, project,
activity, or account shall be subject to reduction pursuant
to any sequestration order, without regard to any exemption,
exception, limitation, or special rule otherwise applicable
with respect to such program, project, activity, or account,
and regardless of whether the program, project, activity, or
account is self-supporting and does not receive
appropriations.
``(2) Payments made by the Government to reimburse or match
administrative costs incurred by a State or political
subdivision under or in connection with any program, project,
activity, or account shall not be considered administrative
expenses of the Government for purposes of this section, and
shall be subject to sequestration to the extent (and only to
the extent) that other payments made by the Government under
or in connection with that program, project, activity, or
account are subject to that reduction or sequestration;
except that Federal payments made to a State as reimbursement
of administrative costs incurred by that State under or in
connection with the unemployment compensation programs
specified in subsection (a)(11) shall be subject to reduction
or sequestration under this part notwithstanding the
exemption otherwise granted to such programs under that
subsection.
``(3) Notwithstanding any other provision of law, the
administrative expenses of the following programs shall be
exempt from sequestration:
``(A) Comptroller of the Currency.
``(B) Federal Deposit Insurance Corporation.
``(C) Office of Thrift Supervision.
``(D) National Credit Union Administration.
``(E) National Credit Union Administration, central
liquidity facility.
``(F) Federal Retirement Thrift Investment Board.
``(G) Resolution Funding Corporation.
``(H) Resolution Trust Corporation.
``(I) Board of Governors of the Federal Reserve System.
``(e) Veterans' Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
``General Post Funds (36-8180-0-7-705).
``Veterans Insurance and Indemnities (36-0120-0-1-701).
``Service-Disabled Veterans Insurance Funds (36-4012-0-
701).
[[Page H5048]]
``Veterans Reopened Insurance Fund (36-4010-0-3-701).
``Servicemembers' Group Life Insurance Fund (36-4009-0-3-
701).
``Post-Vietnam Era Veterans Education Account (36-8133-0-7-
702).
``National Service Life Insurance Fund (36-8132-0-7-701).
``United States Government Life Insurance Fund (36-8150-0-
7-701).
``Veterans Special Life Insurance Fund (36-8455-0-8-701).
``(f) Optional Exemption of Defense and Homeland Security
Accounts.--
``(1) In general.--The President may, with respect to any
defense or homeland security 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. 203. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
(a) In General.--Section 256 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
``(a) National Wool Act and the Special Milk Program.--
Automatic spending increases are increases in outlays due to
changes in indexes in the following programs:
``(1) National Wool Act; and
``(2) Special milk program.
In those programs all amounts other than the automatic
spending increases shall be exempt from reduction under any
sequestration order.
``(b) The Guaranteed Student Loan Program.--(1) Any
reductions which are required to be achieved from the student
loan programs operated pursuant to part B of title IV of the
Higher Education Act of 1965 under any sequestration order
shall be achieved only from loans described in paragraphs (2)
and (3) by the application of the measures described in such
paragraphs.
``(2) For any loan made during the period beginning on the
date that a sequestration order takes effect with respect to
a fiscal year, the rate used in computing the special
allowance payment pursuant to section 438(b)(2)(A)(iii) of
such Act for each of the first four special allowance
payments for such loan shall be adjusted by reducing such
rate by the lesser of--
``(A) 0.40 percent, or
``(B) the percentage by which the rate specified in such
section exceeds 3 percent.
``(3) For any loan made during the period beginning on the
date that a sequestration order takes effect with respect to
a fiscal year, the origination fee which is authorized to be
collected pursuant to section 438(c)(2) of such Act shall be
increased by 0.50 percent.
``(c) Foster Care and Adoption Assistance Programs.--Any
sequestration order shall make the reduction otherwise
required under the foster care and adoption assistance
programs (established by part E of title IV of the Social
Security Act) only with respect to payments and expenditures
made by States in which increases in foster care maintenance
payment rates or adoption assistance payment rates (or both)
are to take effect during the fiscal year involved, and only
to the extent that the required reduction can be accomplished
by applying a uniform percentage reduction to the Federal
matching payments that each such State would otherwise
receive under section 474 of that Act (for such fiscal year)
for that portion of the State's payments attributable to the
increases taking effect during that year. No State's matching
payments from the Government for foster care maintenance
payments or for adoption assistance maintenance payments may
be reduced by a percentage exceeding the applicable domestic
sequestration percentage. No State may, after the date of the
enactment of this Act, make any change in the timetable for
making payments under a State plan approved under part E of
title IV of the Social Security Act which has the effect of
changing the fiscal year in which expenditures under such
part are made.
``(d) Low-Income Programs.--(1) Benefit payments or
payments to States or other entities for the programs listed
in paragraph (2) shall not be reduced by more than 2 percent
under any sequestration order. When reduced under an end-of-
session sequestration order, those benefit reductions shall
occur starting with the payment made at the start of January.
When reduced under a within-session sequestration order,
those benefit reductions shall occur starting with the next
periodic payment.
``(2) The programs referred to in paragraph (1) are the
following:
``Child Nutrition (12-3539-0-1-605).
``Grants to States for Medicaid (75-0512-0-1-551).
``State Children's Health Insurance Fund (75-0515-0-1-551).
``Supplemental Security Income Program (75-0406-0-1-609).
``Temporary Assistance for Needy Families (75-1552-0-1-
609).
``Special supplemental nutrition program for women,
infants, and children (WIC) (12-3510-0-1-605).
``(e) Veterans' Medical Care.--The maximum permissible
reduction in budget authority for Veterans' medical care (36-
0160-0-1-703) for any fiscal year, pursuant to an order
issued under section 254, shall be 2 percent.
``(f) Federal Retirement Programs.--
``(1) For each of the programs listed in paragraph (2) and
except as provided in paragraph (3), monthly (or other
periodic) benefit payments shall be reduced by the uniform
percentage applicable to direct spending sequestrations for
such programs, which shall in no case exceed 2 percent under
any sequestration order. When reduced under an end-of-session
sequestration order, those benefit reductions shall occur
starting with the payment made at the start of January or 7
weeks after the order is issued, whichever is later. When
reduced under a within-session sequestration order, those
benefit reductions shall occur starting with the next
periodic payment.
``(2) The programs subject to paragraph (1) are:
``Central Intelligence Agency Retirement and Disability
Fund (56-3400-0-1-054).
``Comptrollers General Retirement System (05-0107-0-1-801)
``Judicial Officers' Retirement Fund (10-8122-0-7-602).
``Claims Judges' Retirement Fund (10-8124-0-7-602).
``Pensions for former Presidents (47-0105-0-1-802).
``National Oceanic and Atmospheric Administration
Retirement (13-1450-0-1-306).
``Railroad Industry Pension Fund (60-8011-0-7-601).
``Retired pay, Coast Guard (70-0602-0-1-403).
``Retirement pay and medical benefits for commissioned
officers, Public Health Service (75-0379-0-1-551).
``Payments to Civil Service Retirement and Disability Fund
(24-0200-0-1-805).
``Payments to the Foreign Service Retirement and Disability
Fund (72-1036-0-1-153)
``Payments to Judiciary Trust Funds (10-0941-0-1-752).
``(g) Veterans Programs.--To achieve the total percentage
reduction required by any order issued under this part, the
percentage reduction that shall apply to payments under the
following programs shall in no event exceed 2 percent:
``Canteen Service Revolving Fund (36-4014-0-3-705).
``Medical Center Research Organizations (36-4026-0-3-703).
``Disability Compensation Benefits (36-0102-0-1-701).
``Education Benefits (36-0137-0-1-702).
``Vocational Rehabilitation and Employment Benefits (36-
0135-0-1-702).
``Pensions Benefits (36-0154-0-1-701).
``Burial Benefits (36-0139-0-1-701).
``Guaranteed Transitional Housing Loans For Homeless
Veterans Program Account (36-1119-0-1-704).
``Housing Direct Loan Financing Account (36-4127-0-1-704).
``Housing Guaranteed Loan Financing Account (36-4129-0-3-
704).
``Vocational Rehabilitation and Education Direct Loan
Financing Account (36-4259-0-3-702).
``(h) Military Retirement.--To achieve the total percentage
reduction in military retirement required by any order issued
under this part, the percentage reduction that shall apply to
payments under the military retirement fund (97-8097-0-7-602)
and payments to the military retirement fund (97-0040-0-1-
054) shall in no event exceed 2 percent.
``(i) Federal Pay.--
``(1) In general.--For purposes of any order issued under
section 254, new budget authority to pay Federal personnel
shall be reduced by the applicable uniform percentage, but no
sequestration order may reduce or have the effect of reducing
the rate of pay to which any individual is entitled under any
statutory pay system (as increased by any amount payable
under section 5304 of title 5, United States Code, or section
302 of the Federal Employees Pay Comparability Act of 1990)
or the rate of any element of military pay to which any
individual is entitled under title 37, United States Code, or
any increase in rates of pay which is scheduled to take
effect under section 5303 of title 5, United States Code,
section 1009 of title 37, United States Code, or any other
provision of law.
``(2) Definitions.--For purposes of this subsection:
``(A) The term `statutory pay system' shall have the
meaning given that term in section 5302(1) of title 5, United
States Code.
``(B) The term `elements of military pay' means--
``(i) the elements of compensation of members of the
uniformed services specified in section 1009 of title 37,
United States Code,
``(ii) allowances provided members of the uniformed
services under sections 403a and 405 of such title, and
``(iii) cadet pay and midshipman pay under section 203(c)
of such title.
``(C) The term `uniformed services' shall have the meaning
given that term in section 101(3) of title 37, United States
Code.
``(j) Child Support Enforcement Program.--Any sequestration
order shall accomplish the full amount of any required
reduction in expenditures under sections 455 and 458 of the
Social Security Act by reducing the Federal matching rate for
State administrative costs under such program, as specified
(for the fiscal year involved) in section 455(a) of such Act,
to the extent necessary to reduce such expenditures by that
amount.
``(k) Extended Unemployment Compensation.--(1) A State may
reduce each weekly
[[Page H5049]]
benefit payment made under the Federal-State Extended
Unemployment Compensation Act of 1970 for any week of
unemployment occurring during any period with respect to
which payments are reduced under an order issued under this
title by a percentage not to exceed the percentage by which
the Federal payment to the State under section 204 of such
Act is to be reduced for such week as a result of such order.
``(2) A reduction by a State in accordance with
subparagraph (A) shall not be considered as a failure to
fulfill the requirements of section 3304(a)(11) of the
Internal Revenue Code of 1954.
``(l) 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)
Payments and loan eligibility under any contract entered into
with a person by the Commodity Credit Corporation prior to
the time any sequestration order has been issued shall not be
reduced by an order subsequently issued. Subject to
subparagraph (B), after any sequestration order is issued for
a fiscal year, any cash payments made by the Commodity Credit
Corporation--
``(i) under the terms of any one-year contract entered into
in or after such fiscal year and after the issuance of the
order; and
``(ii) out of an entitlement account,
to any person (including any producer, lender, or guarantee
entity) shall be subject to reduction under the order.
``(B) Each 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 any
sequestration order, the order shall provide that the
necessary reduction in payments under contracts applicable to
the commodity be uniformly applied to all contracts for
succeeding crops of the commodity, under the authority
provided in paragraph (3).
``(3) Delayed reduction in outlays permissible.--
Notwithstanding any other provision of this title, if any
sequestration order is issued with respect to a fiscal year,
any reduction under the order applicable to contracts
described in paragraph (2) may provide for reductions in
outlays for the account involved to occur in the fiscal years
following the fiscal year to which the order applies.
``(4) Uniform percentage rate of reduction and other
limitations.--All reductions described in paragraph (2) that
are required to be made in connection with any sequestration
order with respect to a fiscal year--
``(A) 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; and
``(B) with respect to commodity price support and income
protection programs, shall be made in such manner and under
such procedures as will attempt to ensure that--
``(i) uncertainty as to the scope of benefits under any
such program is minimized;
``(ii) any instability in market prices for agricultural
commodities resulting from the reduction is minimized; and
``(iii) normal production and marketing relationships among
agricultural commodities (including both contract and non-
contract commodities) are not distorted.
In meeting the criterion set out in clause (iii) of
subparagraph (B) of the preceding sentence, the President
shall take into consideration that reductions under an order
may apply to programs for two or more agricultural
commodities that use the same type of production or marketing
resources or that are alternative commodities among which a
producer could choose in making annual production decisions.
``(5) Certain authority not to be limited.--Nothing in this
title shall limit or reduce in any way any appropriation that
provides the Commodity Credit Corporation with funds to cover
the Corporation's net realized losses.
``(m) Postal Service Fund.--Notwithstanding any other
provision of law, any sequestration of the Postal Service
Fund shall be accomplished by a payment from that Fund to the
General Fund of the Treasury, and the Postmaster General of
the United States shall make the full amount of that payment
during the fiscal year to which the presidential
sequestration order applies.
``(n) Effects of Sequestration.--The effects of
sequestration shall be as follows:
``(1) Budgetary resources sequestered from any account
other than an entitlement trust, special, or revolving fund
account shall revert to the Treasury and be permanently
canceled.
``(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 that lower appropriation being obligated
as though it had been the pre-sequestration appropriation and
no sequestration had occurred.
``(4) Except as otherwise provided, obligations in
sequestered direct spending accounts shall be reduced in the
fiscal year in which a sequestration occurs and in all
succeeding fiscal years.
``(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) Except as otherwise provided, sequestration in
accounts for which obligations are indefinite shall be taken
in a manner to ensure that obligations in the fiscal year of
a sequestration and succeeding fiscal years are reduced, from
the level that would actually have occurred, by the
applicable sequestration percentage.''.
(b) 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 amending the item relating
to section 256 to read as follows:
``Sec. 256. Exceptions, limitations, and special rules.''.
SEC. 204. POINT OF ORDER.
(a) Entitlement Point of Order.--Section 312 of the
Congressional Budget Act of 1974 is amended by adding at the
end the following new subsection:
``(g) Entitlement Point of Order.--It shall not be in order
in the House of Representatives or the Senate to consider any
bill, joint resolution, amendment, or conference report
that--
``(1) increases aggregate level of direct spending for any
ensuing fiscal year or
``(2) includes any provision that has the effect of
modifying the application of section 252A of the Balanced
Budget and Emergency Deficit Control Act of 1985 to any
entitlement program subject to sequestration or exempt from
sequestration under such Act.''.
SEC. 205. TECHNICAL AND CONFORMING AMENDMENTS.
The Balanced Budget and Emergency Deficit Control Act of
1985 is amended as follows:
(1) Section 251(a)(1) is amended by inserting ``, section
252A,'' after ``section 252''.
(2) Section 254(c)(4)(B) is amended by inserting ``or
section 252A'' after ``section 252''.
(3) Section 254(c) is amended by redesignating paragraph
(5) as paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Direct spending control sequestration reports.--The
preview reports shall set forth, for the current year and the
budget year, estimates for each of the following:
``(A) The total level of direct spending for all programs,
projects, and activities (excluding social security).
``(B) The sequestration percentage or (if the required
sequestration percentage is greater than the maximum
allowable percentage for medicare) percentages necessary to
comply with section 252A.''.
(4) Section 254(f) is amended by redesignating paragraphs
(4) and (5) as paragraphs (5) and (6) and by inserting after
paragraph (3) the following new paragraph:
``(4) Direct spending control sequestration reports.--The
final reports shall contain all the information required in
the direct spending control sequestration preview reports. In
addition, these reports shall contain, for the budget year,
for each account to be sequestered, estimates of the baseline
level of sequesterable budgetary resources and resulting
outlays and the amount of budgetary resources to be
sequestered and resulting outlay reductions. The reports
shall also contain estimates of the effects on outlays of the
sequestration in each outyear for direct spending
programs.''.
(5) Section 258C(a)(1) is amended by inserting ``, 252A,''
after ``section 252''.
Subtitle B--Discretionary Spending Limits
SEC. 211. ENFORCING DISCRETIONARY SPENDING LIMITS.
(a) Discretionary Spending Limits.--Sections 251(b) and (c)
of the Balanced Budget and Emergency Deficit Control of Act
of 1985 are amended to read as follows:
``(b) Discretionary Spending Limit.--As used in this part,
the term `discretionary spending limit' means with respect to
fiscal year 2005: $818,736,000,000 in new budget authority
and $901,816,000,000 in outlays.''.
(b) Discretionary Spending Limit Point of Order.--Section
312 of the Congressional Budget Act of 1974 (as amended by
section 204(a)) is further amended by adding at the end the
following new subsection:
``(h) Discretionary Spending Limit Point of Order.--It
shall not be in order in the House of Representatives or the
Senate to consider any bill, joint resolution, amendment, or
conference report that--
``(1) increases the discretionary spending limits for any
ensuing fiscal year after the budget year; or
[[Page H5050]]
``(2) would cause the discretionary spending limits for the
budget year to be breached.''.
SEC. 212. ANNUAL JOINT RESOLUTION ESTABLISHING DISCRETIONARY
SPENDING LIMITS.
(a) In General.--Title III of the Congressional Budget Act
of 1974 is amended by adding at the end the following new
section:
``annual joint resolution establishing discretionary spending limits
``Sec. 317. (a) Introduction.--Before the close of the
second legislative day of the House of Representatives after
the date of House passage of a concurrent resolution on the
budget, the chairman of the Committee on the Budget of the
House shall introduce a joint resolution that amends section
251(b) of the Balanced Budget and Emergency Deficit Control
of Act of 1985 to establish a discretionary spending limit
for the fiscal year of the concurrent resolution.
``(b) Expedited Consideration.--For purposes of the
consideration of a joint resolution introduced pursuant to
subsection (a), the provisions of subsections (c) and (d) of
section 1013 (other than subsection (c)(1)(A)) shall be
applied by substituting `joint resolution' and `Committee on
the Budget' for `bill' and `Committee on Appropriations',
respectively.''.
(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 316 the following new item:
``Sec. 317. Annual joint resolution establishing discretionary spending
limits.''.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE.
Subtitle A--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
SEC. 301. ENHANCED CONSIDERATION OF CERTAIN PROPOSED
RESCISSIONS.
(a) In General.--Part B of title X of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 681 et
seq.) is amended by redesignating sections 1013 through 1017
as sections 1014 through 1018, respectively, and by inserting
after section 1012 the following new section:
``ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS
``Sec. 1013. (a) Proposed Rescission of Budget Authority
Identified as Wasteful Spending.--The President may propose,
at the time and in the manner provided in subsection (b), the
rescission of any budget authority provided in an
appropriation Act that he identifies as wasteful spending. If
the President proposes a rescission of budget authority, he
may also propose to reduce the appropriate discretionary
spending limits for new budget authority and outlays flowing
therefrom set forth in section 251(b) of the Balanced Budget
and Emergency Deficit Control Act of 1985 by an amount that
does not exceed the amount of the proposed rescission. Funds
made available for obligation under this procedure may not be
proposed for rescission again under this section.
``(b) Transmittal of Special Message.--
``(1) The President may transmit to Congress a special
message proposing to rescind amounts of budget authority and
include with that special message a draft bill that, if
enacted, would only rescind that budget authority unless the
President also proposes a reduction in the appropriate
discretionary spending limits set forth in section 251(b) of
the Balanced Budget and Emergency Deficit Control Act of
1985. That bill shall clearly identify the amount of budget
authority that is proposed to be rescinded for each program,
project, or activity to which that budget authority relates.
``(2) In the case of an appropriation Act that includes
accounts within the jurisdiction of more than one
subcommittee of the Committee on Appropriations, the
President in proposing to rescind budget authority under this
section shall send a separate special message and
accompanying draft bill for accounts within the jurisdiction
of each subcommittee.
``(3) Each special message shall specify, with respect to
the budget authority proposed to be rescinded, the following:
``(A) The amount of budget authority which he proposes to
be rescinded.
``(B) Any account, department, or establishment of the
Government to which such budget authority is available for
obligation, and the specific project or governmental
functions involved.
``(C) The reasons why the budget authority should be
rescinded, including why he considers it to be wasteful
spending.
``(D) To the maximum extent practicable, the estimated
fiscal, economic, and budgetary effect (including the effect
on outlays and receipts in each fiscal year) of the proposed
rescission.
``(E) All facts, circumstances, and considerations relating
to or bearing upon the proposed rescission and the decision
to effect the proposed rescission, and to the maximum extent
practicable, the estimated effect of the proposed rescission
upon the objects, purposes, and programs for which the budget
authority is provided.
``(F) A reduction in the appropriate discretionary spending
limits set forth in section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985, if proposed by the
President.
``(c) Procedures for Expedited Consideration.--
``(1)(A) Before the close of the second legislative day of
the House of Representatives after the date of receipt of a
special message transmitted to Congress under subsection (b),
the majority leader or minority leader of the House of
Representatives shall introduce (by request) the draft bill
accompanying that special message. If the bill is not
introduced as provided in the preceding sentence, then, on
the third legislative day of the House of Representatives
after the date of receipt of that special message, any Member
of that House may introduce the bill.
``(B) The bill shall be referred to the Committee on
Appropriations. The bill shall be reported not later than the
seventh legislative day of that House after the date of
receipt of that special message. If that committee fails to
report the bill within that period, that committee shall be
automatically discharged from consideration of the bill, and
the bill shall be placed on the appropriate calendar.
``(C) A vote on final passage of the bill shall be taken in
the House of Representatives on or before the close of the
10th legislative day of that House after the date of the
introduction of the bill in that House. If the bill is
passed, the Clerk of the House of Representatives shall cause
the bill to be engrossed, certified, and transmitted to the
Senate within one calendar day of the day on which the bill
is passed.
``(2)(A) A motion in the House of Representatives to
proceed to the consideration of a bill under this section
shall be highly privileged and not debatable. An amendment to
the motion shall not be in order, nor shall it be in order to
move to reconsider the vote by which the motion is agreed to
or disagreed to.
``(B) Debate in the House of Representatives on a bill
under this section shall not exceed 4 hours, which shall be
divided equally between those favoring and those opposing the
bill. A motion to further limit debate shall not be
debatable. It shall not be in order to move to recommit a
bill under this section or to move to reconsider the vote by
which the bill is agreed to or disagreed to.
``(C) Appeals from decisions of the Chair relating to the
application of the Rules of the House of Representatives to
the procedure relating to a bill under this section shall be
decided without debate.
``(D) Except to the extent specifically provided in the
preceding provisions of this subsection, consideration of a
bill under this section shall be governed by the Rules of the
House of Representatives. It shall not be in order in the
House of Representatives to consider any rescission bill
introduced pursuant to the provisions of this section under a
suspension of the rules or under a special rule.
``(3) A bill transmitted to the Senate pursuant to
paragraph (1)(D) shall be referred to its Committee on
Appropriations. That committee shall report the bill without
substantive revision and with or without recommendation. The
bill shall be reported not later than the seventh legislative
day of the Senate after it receives the bill. A committee
failing to report the bill within such period shall be
automatically discharged from consideration of the bill, and
the bill shall be placed upon the appropriate calendar.
``(4)(A) A motion in the Senate to proceed to the
consideration of a bill under this section shall be
privileged and not debatable. An amendment to the motion
shall not be in order, nor shall it be in order to move to
reconsider the vote by which the motion is agreed to or
disagreed to.
``(B) Debate in the Senate on a bill under this section,
and all debatable motions and appeals in connection therewith
(including debate pursuant to subparagraph (C)), shall not
exceed 10 hours. The time shall be equally divided between,
and controlled by, the majority leader and the minority
leader or their designees.
``(C) Debate in the Senate or any debatable motion or
appeal in connection with a bill under this section shall be
limited to not more than 1 hour, to be equally divided
between, and controlled by, the mover and the manager of the
bill, except that in the event the manager of the bill is in
favor of any such motion or appeal, the time in opposition
thereto, shall be controlled by the minority leader or his
designee. Such leaders, or either of them, may, from time
under their control of the passage of a bill, allot
additional time to any Senator during the consideration of
any debatable motion or appeal.
``(D) A motion in the Senate to further limit debate on a
bill under this section is not debatable. A motion to
recommit a bill under this section is not in order.
``(d) Amendment and Divisions Prohibited.--No amendment to
a bill considered under this section shall be in order in
either the House of Representatives or the Senate. It shall
not be in order to demand a division of the question in the
House of Representatives (or in a Committee of the Whole) or
in the Senate. No motion to suspend the application of this
subsection shall be in order in either House, nor shall it be
in order in either House to suspend the application of this
subsection by unanimous consent.
``(e) Requirement To Make Available for Obligation.--Any
amount of budget authority proposed to be rescinded in a
special message transmitted to Congress under subsection (b)
shall be made available for obligation on the day after the
date on which either House rejects the bill transmitted with
that special message.
[[Page H5051]]
``(f) Definitions.--For purposes of this section:
``(1) The term `appropriation Act' means any general or
special appropriation Act, and any Act or joint resolution
making supplemental, deficiency, or continuing
appropriations.
``(2) The term `legislative day' means, with respect to
either House of Congress, any day of session.
``(3) The term `rescind' means, with respect to an
appropriation Act, to reduce the amount of budget authority
appropriated in that Act, and reducing budget authority shall
include reducing obligation limitations set forth in that
Act.''.
(b) Exercise of Rulemaking Powers.--Section 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is
amended--
(1) in subsection (a), by striking ``and 1017'' and
inserting ``1012, and 1017''; and
(2) in subsection (d), by striking ``section 1017'' and
inserting ``sections 1012 and 1017''.
(c) Conforming Amendments.--
(1) Section 1011 of the Congressional Budget Act of 1974 (2
U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5)
and by redesignating paragraph (4) as paragraph (3).
(2) Section 1014 of such Act (2 U.S.C. 685) is amended--
(A) in subsection (b)(1), by striking ``or the
reservation''; and
(B) in subsection (e)(1), by striking ``or a reservation''
and by striking ``or each such reservation''.
(3) Section 1015(a) of such Act (2 U.S.C. 686) is amended
by striking ``is to establish a reserve or'', by striking
``the establishment of such a reserve or'', and by striking
``reserve or'' each other place it appears.
(4) Section 1017 of such Act (2 U.S.C. 687) is amended--
(A) in subsection (a), by striking ``rescission bill
introduced with respect to a special message or'';
(B) in subsection (b)(1), by striking ``rescission bill
or'', by striking ``bill or'' the second place it appears, by
striking ``rescission bill with respect to the same special
message or'', and by striking ``, and the case may be,'';
(C) in subsection (b)(2), by striking ``bill or'' each
place it appears;
(D) in subsection (c), by striking ``rescission'' each
place it appears and by striking ``bill or'' each place it
appears;
(E) in subsection (d)(1), by striking ``rescission bill
or'' and by striking ``, and all amendments thereto (in the
case of a rescission bill)'';
(F) in subsection (d)(2)--
(i) by striking the first sentence;
(ii) by amending the second sentence to read as follows:
``Debate on any debatable motion or appeal in connection with
an impoundment resolution shall be limited to 1 hour, to be
equally divided between, and controlled by, the mover and the
manager of the resolution, except that in the event that the
manager of the resolution is in favor of any such motion or
appeal, the time in opposition thereto shall be controlled by
the minority leader or his designee.'';
(iii) by striking the third sentence; and
(iv) in the fourth sentence, by striking ``rescission bill
or'' and by striking ``amendment, debatable motion,'' and by
inserting `debatable motion';
(G) in paragraph (d)(3), by striking the second and third
sentences; and
(H) by striking paragraphs (4), (5), (6), and (7) of
paragraph (d).
(d) Clerical Amendments.--The table of sections for subpart
B of title X of the Congressional Budget and Impoundment
Control Act of 1974 is amended by redesignating the item
relating to sections 1014 through 1018 as items 1015 through
1019, respectively, and by inserting after the item relating
to section 1012 the following new item:
``Sec. 1013. Enhanced consideration of certain proposed rescissions.''.
Subtitle B--Commission to Eliminate Waste, Fraud, and Abuse
SEC. 311. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established the Commission to
Eliminate Waste, Fraud, and Abuse (hereafter in this subtitle
referred to as the ``Commission'').
(b) Membership.--
(1) In general.--The Commission shall consist of 12
members, all of whom shall be appointed by the President not
later than 90 days after the date of enactment of this Act.
(2) Chairperson and vice chairperson.--The President shall
designate a chairperson and vice chairperson from among the
members of the Commission.
(c) Period of Appointment; Vacancies.--Members shall be
appointed for the life of the Commission. Any vacancy in the
Commission shall not affect its powers, but shall be filled
in the same manner as the original appointment.
(d) Meetings.--
(1) Initial meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed,
the Commission shall hold its first meeting.
(2) Subsequent meetings.--The Commission shall meet at the
call of the chairperson.
(e) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
SEC. 312. DUTIES OF THE COMMISSION.
(a) Definitions.--In this section, the following
definitions shall apply:
(1) Agency.--The term ``agency'' has the meaning given the
term ``Executive agency'' under section 105 of title 5,
United States Code.
(2) Program.--The term ``program'' means any activity or
function of an agency.
(b) In General.--The Commission shall--
(1) evaluate all agencies and programs within those
agencies, using the criteria under subsection (c); and
(2) submit to Congress a plan with recommendations of the
agencies and programs that should be realigned or eliminated.
(c) Criteria.--
(1) Duplicative.--If 2 or more agencies or programs are
performing the same essential function and the function can
be consolidated or streamlined into a single agency or
program, the Commission shall recommend that the agency or
program be realigned.
(2) Wasteful or inefficient.--The Commission shall
recommend the realignment or elimination of any agency or
program that has wasted Federal funds by--
(A) egregious spending;
(B) mismanagement of resources and personnel; or
(C) use of such funds for personal benefit or the benefit
of a special interest group.
(3) Outdated, irrelevant, or failed.--The Commission shall
recommend the elimination of any agency or program that--
(A) has completed its intended purpose;
(B) has become irrelevant; or
(C) has failed to meet its objectives.
(d) Systematic Assessment of Programs.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the President shall--
(A) establish a systematic method for assessing the
effectiveness and accountability of agency programs; and
(B) submit, to the Commission, assessments of not less than
\1/2\ of all programs covered under subsection (b)(1) that
use the method established under subparagraph (A).
(2) Method objectives.--The method established under
paragraph (1) shall--
(A) recognize different types of federal programs;
(B) assess programs based primarily on the achievement of
performance goals (as defined under section 1115(f)(4) of
title 31, United States Code); and
(C) assess programs based in part on the adequacy of the
program's performance measures, financial management, and
other factors determined by the President.
(3) Development.--The method established under paragraph
(1) shall not be implemented until it has been reviewed and
accepted by the Commission.
(4) Consideration of assessments.--The Commission shall
consider assessments submitted under this subsection when
evaluating programs under subsection (b)(1).
(e) Common Performance Measures.--Not later than 1 year
after the date of enactment of this Act, the President shall
identify common performance measures for programs covered in
subsection (b)(1) that have similar functions and, to the
extent feasible, provide the Commission with data on such
performance measures.
(f) Report.--Not later than 2 years after the date of
enactment of this Act, the Commission shall submit to the
President and Congress a report that includes the plan
described under subsection (b)(2), with supporting
documentation for all recommendations.
SEC. 313. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission or, at its direction, any
subcommittee or member of the Commission, may, for the
purpose of carrying out this subtitle--
(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and
administer such oaths as any member of the Commission
considers advisable;
(2) require, by subpoena or otherwise, the attendance and
testimony of such witnesses as any member of the Commission
considers advisable; and
(3) require, by subpoena or otherwise, the production of
such books, records, correspondence, memoranda, papers,
documents, tapes, and other evidentiary materials relating to
any matter under investigation by the Commission.
(b) Subpoenas.--
(1) Issuance.--Subpoenas issued under subsection (a) shall
bear the signature of the chairperson of the Commission and
shall be served by any person or class of persons designated
by the chairperson for that purpose.
(2) Enforcement.--In the case of contumacy or failure to
obey a subpoena issued under subsection (a), the United
States district court for the judicial district in which the
subpoenaed person resides, is served, or may be found, may
issue an order requiring such person to appear at any
designated place to testify or to produce documentary or
other evidence. Any failure to obey the order of the court
may be punished by the court as a contempt of that court.
(c) Information From Federal Agencies.--The Commission may
secure directly from any Federal department or agency such
information as the Commission considers necessary to carry
out this Act. Upon request of the chairperson of the
Commission, the head of such department or agency shall
furnish such information to the Commission.
(d) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Government.
(e) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
[[Page H5052]]
SEC. 314. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--
(1) Non-federal members.--Except as provided under
subsection (b), each member of the Commission who is not an
officer or employee of the Government shall not be
compensated.
(2) Federal officers or employees.--All members of the
Commission who are officers or employees of the United States
shall serve without compensation in addition to that received
for their services as officers or employees of the United
States.
(b) Travel Expenses.--The members of the Commission shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the Commission.
(c) Staff.--
(1) In general.--The chairperson of the Commission may,
without regard to the civil service laws and regulations,
appoint and terminate an executive director and such other
additional personnel as may be necessary to enable the
Commission to perform its duties. The employment of an
executive director shall be subject to confirmation by the
Commission.
(2) Compensation.--Upon the approval of the chairperson,
the executive director may fix the compensation of the
executive director and other personnel without regard to
chapter 51 and subchapter III of chapter 53 of title 5,
United States Code, relating to classification of positions
and General Schedule pay rates, except that the rate of pay
for the executive director and other personnel may not exceed
the maximum rate payable for a position at GS-15 of the
General Schedule under section 5332 of such title.
(3) Personnel as federal employees.--
(A) In general.--The executive director and any personnel
of the Commission who are employees shall be employees under
section 2105 of title 5, United States Code, for purposes of
chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.
(B) Members of commission.--Subparagraph (A) shall not be
construed to apply to members of the Commission.
(d) Detail of Government Employees.--Any Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption
or loss of civil service status or privilege.
(e) Procurement of Temporary and Intermittent Services.--
The chairperson of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under
section 5316 of such title.
SEC. 315. TERMINATION OF THE COMMISSION.
The Commission shall terminate 90 days after the date on
which the Commission submits its report.
SEC. 316. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary for carrying out this subtitle for each of the
fiscal years 2006 through 2008.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
SEC. 401. CIVIL SERVICE RETIREMENT SYSTEM.
(a) Civil Service Retirement and Disability Fund.--Chapter
83 of title 5, United States Code, is amended--
(1) in section 8331--
(A) in paragraph (17)--
(i) by striking ``normal cost'' and inserting ``normal cost
percentage''; and
(ii) by inserting ``and standards (using dynamic
assumptions)'' after ``practice'';
(B) by amending paragraph (18) to read as follows:
``(18) `Fund balance' means the current net assets of the
Fund available for payment of benefits, as determined by the
Office in accordance with appropriate accounting standards,
but does not include any amount attributable to--
``(A) the Federal Employees' Retirement System; or
``(B) contributions made under the Federal Employees'
Retirement Contribution Temporary Adjustment Act of 1983 by
or on behalf of any individual who became subject to the
Federal Employees' Retirement System;''
(C) by amending paragraph (19) to read as follows:
``(19) `accrued liability' means the estimated excess of
the present value of all benefits payable from the Fund to
employees and Members, and former employees and Members,
subject to this subchapter, and their survivors, over the
present value of deductions to be withheld from the future
basic pay of employees and Members currently subject to this
subchapter and of future agency contributions to be made in
their behalf;''
(D) in paragraph (27) by striking ``and'' at the end;
(E) in paragraph (28) by striking the period at the end and
inserting a semicolon; and
(F) by adding at the end the following paragraphs:
``(29) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities
of a retirement system and in anticipating the effects of
long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation; and
``(30) `unfunded liability' means the estimated excess of--
``(A) the actuarial present value of all future benefits
payable from the Fund under this subchapter based on the
service of current or former employees or Members, over
``(B) the sum of--
``(i) the actuarial present value of deductions to be
withheld from the future basic pay of employees and Members
currently subject to this chapter pursuant to section 8334;
``(ii) the actuarial present value of the future
contributions to be made pursuant to section 8334 with
respect to employees and Members currently subject to this
subchapter;
``(iii) the Fund balance, as defined in paragraph (18), as
of the date the unfunded liability is determined; and
``(iv) any other appropriate amount, as determined by the
Office of Personnel Management in accordance with generally
accepted actuarial practices and principles.'';
(2) in section 8334--
(A) in subsection (a)(1)--
(i) by striking the last two sentences;
(ii) by redesignating that subsection, as so amended, as
(a)(1)(A); and
(iii) by adding at the end the following new subparagraphs:
``(B) Except as provided in subparagraph (E), each
employing agency having any employees or Members subject to
subparagraph (A) shall contribute from amounts available for
salaries and expenses an amount equal to the sum of--
``(i) the product of--
``(I) the normal cost percentage, as determined for
employees (other than employees covered by clause (ii)),
multiplied by
``(II) the aggregate amount of basic pay payable by the
agency, for the period involved, to employees (under
subclause (I)) who are within such agency; and
``(ii) the product of--
``(I) the normal cost percentage, as determined for
Members, Congressional employees, law enforcement officers,
firefighters, air traffic controllers, bankruptcy judges,
Court of Federal Claims judges, United States magistrates,
judges of the United States Court of Appeals for the Armed
Forces, members of the Capitol Police, nuclear materials
couriers, and members of the Supreme Court Police, multiplied
by
``(II) the aggregate amount of basic pay payable by the
agency for the period involved, to employees and Members
(under subclause (I)) who are within such agency.
``(C) In determining the normal cost percentage to be
applied under subparagraph (B), amounts provided for under
subparagraph (A) shall be taken into account.
``(D) Contributions under this paragraph shall be paid--
``(i) in the case of law enforcement officers,
firefighters, air traffic controllers, bankruptcy judges,
Court of Federal Claims judges, United States magistrates,
judges of the United States Court of Appeals for the Armed
Forces, members of the Supreme Court Police, nuclear
materials couriers and other employees, from the
appropriations or fund used to pay such law enforcement
officers, firefighters, air traffic controllers, bankruptcy
judges, Court of Federal Claims judges, United States
magistrates, judges of the United States Court of Appeals for
the Armed Forces, members of the Supreme Court Police,
nuclear materials couriers and other employees, respectively;
``(ii) in the case of elected officials, from an
appropriation or fund available for payment of other salaries
of the same office or establishment; and
``(iii) in the case of employees of the legislative branch
paid by the Clerk of the House of Representatives, from the
contingent fund of the House.
``(E) In the case of the United States Postal Service, the
Metropolitan Washington Airports Authority, and the
government of the District of Columbia, an amount equal to
that withheld under subparagraph (A) shall be contributed
from the appropriation or fund used to pay the employee.'';
and
(B) in subsection (k)--
(i) in paragraph (1)--
(I) in subparagraph (A) by striking ``the first sentence of
subsection (a)(1) of this section'' and inserting
``subsection (a)(1)(A)''; and
(II) by amending subparagraph (B) to read as follows:
``(B) the amount of the contribution under subsection
(a)(1)(B) shall be the amount which would have been
contributed under such subsection if this subsection had not
been enacted.''; and
(ii) in paragraph (2)(C)(iii) by striking ``the first
sentence of subsection (a)(1)'' and inserting ``subsection
(a)(1)(A)''; and
(3) in section 8348--
(A) by repealing subsection (f);
(B) by amending subsection (g) to read as follows:
``(g)(1)(A) Not later than June 30, 2005, the Office of the
Actuary shall determine the unfunded liability of the Fund,
as of September 30, 2004, attributable to benefits payable
under this chapter and make recommendations regarding its
liquidation. After considering such recommendations, the
Office shall
[[Page H5053]]
establish an amortization schedule, including a series of
annual installments commencing October 1, 2005, which
provides for the liquidation of such liability by October 1,
2044.
``(B) The Office shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each
fiscal year beginning after September 30, 2004, through the
fiscal year ending September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(C) The Office shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each
fiscal year beginning after September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability over five years.
``(D) Amortization schedules established under this
paragraph shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Civil
Service Retirement System.
``(2) At the beginning of each fiscal year, beginning on
October 1, 2005, the Office shall notify the Secretary of the
Treasury of the amount of the first installment under the
most recent amortization schedule established under paragraph
(1). The Secretary shall credit that amount to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.
``(3) For the purpose of carrying out paragraph (1) with
respect to any fiscal year, the Office may--
``(A) require the Board of Actuaries of the Civil Service
Retirement System to make actuarial determinations and
valuations, make recommendations, and maintain records in
accordance with section 8347(f); and
``(B) use the latest actuarial determinations and
valuations made by such Board of Actuaries.'';
(C) in subsections (h), (i), and (m) by striking
``unfunded'' and inserting ``accrued'' each place it appears;
and
(D) by adding at the end the following new subsection:
``(n) Under regulations prescribed by the Office, the head
of an agency may request reconsideration of any amount
determined to be payable with respect to such agency under
section 8334(a)(1)(B)-(D). Any such request shall be referred
to the Board of Actuaries of the Civil Service Retirement
System. The Board of Actuaries shall review the computations
of the Office and may make any adjustment with respect to any
such amount which the Board determines appropriate. A
determination by the Board of Actuaries under this subsection
shall be final.''.
(b) Government Contributions.--Section 8423 of title 5,
United States Code, is amended--
(1) in subsection (a)(2) by striking ``section 8422'' and
inserting ``section 8422(a)''; and
(2) in subsection (b)(2) by striking ``equal annual
installments'' and inserting ``annual installments set in
accordance with generally accepted actuarial practices and
principles''.
SEC. 402. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM.
(a) Section 101 of the Central Intelligence Agency
Retirement Act (50 U.S.C. 2001) is amended--
(1) in paragraph (5), to read as follows:
``(5) Unfunded liability.--The term `unfunded liability'
means the estimated excess of--
``(A) the actuarial present value of all future benefits
payable from the Fund under title II of this Act based on the
service of current or former participants, over
``(B) the sum of--
``(i) the actuarial present value of deductions to be
withheld from the future basic pay of participants currently
subject to title II of this Act pursuant to section 211;
``(ii) the actuarial present value of the future
contributions to be made pursuant to section 211 with respect
to participants currently subject to title II of this Act;
``(iii) the Fund balance, as defined in paragraph (4), as
of the date the unfunded liability is determined; and
``(iv) any other appropriate amount, as determined by the
Director in accordance with generally accepted actuarial
practices and principles.'';
(2) in paragraph (6)--
(A) by striking `` `normal cost' '' and inserting ``
`normal cost percentage' ''; and
(B) by inserting ``and standards (using dynamic
assumptions)'' after ``practice''; and
(3) by adding at the end the following paragraph:
``(10) Dynamic assumptions.--The term `dynamic assumptions'
means economic assumptions that are used in determining
actuarial costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.''.
(b) Section 202 of such Act (50 U.S.C. 2012) is amended by
adding at the end the following: ``The Fund is appropriated
for the payment of benefits as provided by this title.''.
(c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is
amended to read as follows:
``(2) Agency contributions.--The Agency shall contribute to
the Fund the amount computed in a manner similar to that used
under section 8334(a) of title 5, United States Code,
pursuant to determinations of the normal cost percentage of
the Central Intelligence Agency Retirement and Disability
System by the Director. Contributions under this paragraph
shall be paid from amounts available for salaries and
expenses.''.
(d) Section 261 of such Act (50 U.S.C. 2091) is amended--
(1) by striking subsections (c), (d), and (e); and
(2) by inserting after subsection (b) the following new
subsections:
``(c)(1) Not later than June 30, 2005, the Director shall
cause to be made actuarial valuations of the Fund that
determine the unfunded liability of the Fund, as of September
30, 2004, attributable to benefits payable under this title
and make recommendations regarding its liquidation. After
considering such recommendations, the Director shall
establish an amortization schedule, including a series of
annual installments commencing October 1, 2005, which
provides for the liquidation of such liability by October 1,
2044.
``(2) The Director shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each
fiscal year beginning after September 30, 2004, through the
fiscal year ending September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Director shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each
fiscal year beginning after September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability over five years.
``(4) Amortization schedules established under this
subsection shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Civil
Service Retirement and Disability System.
``(d) At the beginning of each fiscal year, beginning on
October 1, 2005, the Director shall notify the Secretary of
the Treasury of the amount of the first installment under the
most recent amortization schedule established under
subsection (c). The Secretary shall credit that amount to the
Fund, as a Government contribution, out of any money in the
Treasury of the United States not otherwise appropriated. For
the purposes of Section 504 of the National Security Act of
1947, this amount shall be considered authorized.''.
(e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is
amended by adding at the end the following new section:
``SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EMPLOYEES
DESIGNATED UNDER SECTION 302.
``(a) In addition to other government contributions
required by law, the Agency shall contribute to the Civil
Service Retirement and Disability fund (hereinafter in this
section referred to as the `Fund') amounts calculated in
accordance with section 8423 of title 5, United States Code,
based on the projected number of employees to be designated
pursuant to section 302 of this Act. In addition, the Agency,
in a manner similar to that established for employee
contributions to the Fund by section 8422 of title 5, United
States Code, will contribute an amount equal to the
difference between that which would be contributed by the
number of employees projected to be designated under section
302 and the amounts that are actually being deducted and
contributed from the basic pay of an equal number of
employees pursuant to section 8422. The amounts of the
Agency's contributions under this subsection shall be
determined by the Director of the Office of Personnel
Management, in consultation with the Director, and shall be
paid by the Agency from funds available for salaries and
expenses. Agency employees designated pursuant to section 302
of this Act shall, commencing with such designation, have
deducted from their basic pay the full amount required by
section 8422 of title 5, United States Code, and such
deductions shall be contributed to the Fund.
``(b)(1) The Director of the Office of Personnel
Management, in consultation with the Director, shall
determine the total amount of unpaid contributions
(government and employee contributions) and interest
attributable to the number of individuals employed with the
Agency on September 30, 2005, who are projected to be
designated under section 302 of this Act, but are not yet
designated under that section as of that date. The amount
shall be referred to as the section 302 unfunded liability.
``(2) Not later than June 30, 2006, the Director of the
Office of Personnel Management, in consultation with the
Director, shall establish an amortization schedule, setting
forth a series of annual installments commencing September
30, 2006, which provides for the liquidation of the section
302 unfunded liability by September 30, 2013.
``(3) At the end of each fiscal year, beginning on
September 30, 2006, the Director shall notify the Secretary
of the Treasury of the amount of the annual installment under
the amortization schedule established under paragraph (2) of
this subsection. Before closing the accounts for that fiscal
year, the Secretary shall credit that amount to the
[[Page H5054]]
Fund, out of any money in the Treasury of the United States
not otherwise appropriated.
``(c) Amounts paid by the Agency pursuant to this section
are deemed to be specifically authorized by the Congress for
the purposes of section 504 of the National Security Act of
1947.''.
(2) The table of contents of such Act is amended by
inserting after the item relating to section 307 the
following new item:
``Sec. 308. Full funding of retiree costs for employees designated
under section 302.''.
SEC. 403. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.
Chapter 8 of title I of the Foreign Service Act of 1980,
Public Law 96-465 (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as
amended, is further amended--
(1) in section 804 (22 U.S.C. 4044)--
(A) by amending paragraph (5) to read as follows:
``(5) `normal cost percentage' means the entry-age normal
cost computed in accordance with generally accepted actuarial
practice and standards (using dynamic assumptions) and
expressed as a level percentage of aggregate basic pay;'';
(B) by amending paragraph (14) to read as follows:
``(14) `unfunded liability' means the estimated excess of--
``(A) the actuarial present value of all future benefits
payable from the Fund under this part based on the service of
current or former participants, over
``(B) the sum of--
``(i) the actuarial present value of deductions to be
withheld from the future basic pay of participants currently
subject to this part pursuant to section 805;
``(ii) the actuarial present value of the future
contributions to be made pursuant to section 805 with respect
to participants currently subject to this part;
``(iii) the Fund balance, as defined in paragraph (7), as
of the date the unfunded liability is determined, excluding
any amount attributable to the Foreign Service Pension
System, or contributions made under the Federal Employees'
Retirement Contribution Temporary Adjustment Act of 1983 by
or on behalf of any individual who became subject to the
Foreign Service Pension System; and
``(iv) any other appropriate amount, as determined by the
Secretary of the Treasury in accordance with generally
accepted actuarial practices and principles.''; and
(C)(i) by striking the period at the end of paragraph (15)
and inserting ``; and''; and
(ii) by adding at the end the following new paragraph:
``(16) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities
of a retirement system and in anticipating the effects of
long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(2) in section 852 (22 U.S.C. 4071a)--
(A) in paragraph (4)--
(i) by striking ``normal cost'' and inserting ``normal cost
percentage''; and
(ii) by striking ``by the Secretary of State'';
(B) in paragraph (7)--
(i) by striking ``supplemental'' and inserting
``unfunded'';
(ii) in subparagraph (B)(i) by striking ``(I)'' and ``and
(II) contributions for past civilian and military service'';
and
(iii) in subparagraph (B)(ii) by inserting before the
semicolon ``with respect to participants currently subject to
this part''; and
(C)(i) at the end of paragraph (8) by striking ``and'';
(ii) at the end of paragraph (9) by striking the period and
inserting ``; and''; and
(iii) by adding at the end the following new paragraph:
``(10) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities
of a retirement system and in anticipating the effects of
long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(3) in section 805(a)(1) (22 U.S.C. 4045(a)(i))--
(A) by striking the second sentence;
(B) by redesignating that subsection, as so amended, as
(a)(1)(A);
(C) by redesignating the last sentence of that subsection,
as so amended as (a)(1)(C);
(D) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Each employing agency having participants shall
contribute to the Fund the amount computed in a manner
similar to that used under section 8334(a) of title 5, United
States Code, pursuant to determinations of the normal cost
percentage of the Foreign Service Retirement and Disability
System. Contributions under this subparagraph shall be paid
from the appropriations or fund used for payment of the
salary of the participant.'';
(E) in subsection (a)(2)(A) by striking ``An equal amount
shall be contributed by the Department'' and inserting in its
place ``Each employing agency having participants shall
contribute to the Fund the amount computed in a manner
similar to that used under section 8334(a) of title 5, United
States Code, pursuant to determinations of the normal cost
percentage of the Foreign Service Retirement and Disability
System''; and
(F) in subsection (a)(2)(B) by striking ``An equal amount
shall be contributed by the Department'' and inserting in its
place ``Each employing agency having participants shall
contribute to the Fund from amounts available for salaries
and expenses the amount computed in a manner similar to that
used under section 8334(a) of title 5, United States Code,
pursuant to determinations of the normal cost percentage of
the Foreign Service Retirement and Disability System'';
(4) by repealing sections 821 and 822 (22 U.S.C. 4061 and
4062) and by adding the following new section:
``Sec. 821. Unfunded Liability.--(a)(1) Not later than June
30, 2005, the Secretary of State shall cause to be made
actuarial valuations of the Fund that determine the unfunded
liability of the Fund, as of September 30, 2004, attributable
to benefits payable under this subchapter and make
recommendations regarding its liquidation. After considering
such recommendations, the Secretary of State shall establish
an amortization schedule, including a series of annual
installments commencing October 1, 2004, which provides for
the liquidation of such liability by October 1, 2044.
``(2) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each fiscal year beginning after September 30, 2004, through
the fiscal year ending September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability by October 1, 2044.
``(3) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and
shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the
second subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(4) Amortization schedules established under this
subsection shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Foreign
Service Retirement and Disability System.
``(b) At the beginning of each fiscal year, beginning on
October 1, 2005, the Secretary of State shall notify the
Secretary of the Treasury of the amount of the first
installment under the most recent amortization schedule
established under paragraph (1). The Secretary of the
Treasury shall credit that amount to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.'';
(5) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by
striking ``equal annual installments'' and inserting ``annual
installments set in accordance with generally accepted
actuarial practices and principles'';
(6) in section 859 (22 U.S.C. 4071h) by adding
``percentage'' after ``normal cost'';
(7) in section 802 (22 U.S.C. 4042) by adding at the end
the following: ``The Fund is appropriated for the payment of
benefits as provided by this subchapter.''; and
(8) in section 818 (22 U.S.C. 4058) by striking ``System''
and inserting ``Systems under this subchapter''.
SEC. 404. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT
SYSTEM.
(a) In General.--Title II of the Public Health Service Act
(42 U.S.C. 202 et seq.) is amended by adding at the end the
following new part:
``PART C--PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM
``ESTABLISHMENT AND PURPOSE OF FUND
``Sec. 251. There is established on the books of the
Treasury a fund to be known as the Public Health Service
Commissioned Corps Retirement Fund (hereinafter in this part
referred to as the `Fund'), which shall be administered by
the Secretary. The Fund shall be used for the accumulation of
funds in order to finance on an actuarially sound basis
liabilities of the Department of Health and Human Services
for benefits payable on account of retirement, disability, or
death to commissioned officers of the Public Health Service
and to their survivors pursuant to part A of this title.
``ASSETS OF THE FUND
``Sec. 252. There shall be deposited into the Fund the
following, which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 255.
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
404(c) of the Deficit Control Act of 2004.
``PAYMENT FROM THE FUND
``Sec. 253. There shall be paid from the Fund benefits
payable on account of retirement, disability, or death to
commissioned officers of the Public Health Service and to
their survivors pursuant to part A of this title.
``DETERMINATION OF CONTRIBUTIONS TO THE FUND
``Sec. 254. (a)(1) Not later than June 30, 2005, the
Secretary shall determine the unfunded liability of the Fund
attributable to service performed as of September 30, 2004,
which is `active service' for the purpose of
[[Page H5055]]
section 212. The Secretary shall establish an amortization
schedule, including a series of annual installments
commencing October 1, 2005, which provides for the
liquidation of such liability by October 1, 2044.
``(2) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each fiscal year beginning after September 30, 2004, through
the fiscal year ending September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and
shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the
second subsequent fiscal year, which provides for the
liquidation of such liability over 5 years.
``(b) The Secretary shall determine each fiscal year, in
sufficient time for inclusion in the budget request for the
following fiscal year, the total amount of Department of
Health and Human Services contributions to be made to the
Fund during the fiscal year under section 255(a). That amount
shall be the sum of--
``(1) the product of--
``(A) the current estimate of the value of the single level
percentage of basic pay to be determined under subsection
(c)(1) at the time of the most recent actuarial valuation
under subsection (c); and
``(B) the total amount of basic pay expected to be paid
during that fiscal year to commissioned officers of the
Public Health Service on active duty (other than active duty
for training); and
``(2) the product of--
``(A) the current estimate of the value of the single level
percentage of basic pay and of compensation (paid pursuant to
section 206 of title 37, United States Code) to be determined
under subsection (c)(2) at the time of the most recent
actuarial valuation under subsection (c); and
``(B) the total amount of basic pay and of compensation
(paid pursuant to section 206 of title 37, United States
Code) expected to be paid during the fiscal year to
commissioned officers of the Reserve Corps of the Public
Health Service (other than officers on full-time duty other
than for training) who are not otherwise described in
subparagraph (A).
``(c) Not less often than every four years thereafter (or
by the fiscal year end prior to the effective date of any
statutory change affecting benefits payable on account of
retirement, disability, or death to commissioned officers or
their survivors), the Secretary shall carry out an actuarial
valuation of benefits payable on account of retirement,
disability, or death to commissioned officers of the Public
Health Service and to their survivors pursuant to part A of
this title. Each such actuarial valuation shall be signed by
an enrolled Actuary and shall include--
``(1) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
commissioned officers of the Public Health Service on active
duty (other than active duty for training); and
``(2) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) of commissioned officers of the Reserve
Corps of the Public Health Service (other than officers on
full time duty other than for training) who are not otherwise
described in paragraph (1).
``(d) All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(e) The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status
of the Fund.
``PAYMENTS INTO THE FUND
``Sec. 255. (a) From amounts available to the Department of
Health and Human Services for salaries and expenses, the
Secretary shall pay into the Fund at the end of each month
the amount that is the sum of--
``(1) the product of--
``(A) the level percentage of basic pay determined using
all the methods and assumptions approved for the most recent
(as of the first day of the current fiscal year) actuarial
valuation under sections 254(c)(1) (except that any statutory
change affecting benefits payable on account of retirement,
disability, or death to commissioned officers or their
survivors that is effective after the date of that valuation
and on or before the first day of the current fiscal year
shall be used in such determination); and
``(B) the total amount of basic pay accrued for that month
by commissioned officers of the Public Health Service on
active duty (other than active duty for training); and
``(2) the product of--
``(A) the level percentage of basic pay and of compensation
(paid pursuant to section 206 of title 37, United States
Code) determined using all the methods and assumptions
approved for the most recent (as of the first day of the
current fiscal year) actuarial valuation under section
254(c)(2) (except that any statutory change affecting
benefits payable on account of retirement, disability, or
death to commissioned officers or their survivors that is
effective after the date of that valuation and on or before
the first day of the current fiscal year shall be used in
such determinations); and
``(B) the total amount of basic pay and of compensation
(paid pursuant to section 206 of title 37, United States
Code) accrued for that month by commissioned officers of the
Reserve Corps of the Public Health Service (other than
officers on full-time duty other than for training).
``(b) At the beginning of each fiscal year, beginning on
October 1, 2005, the Secretary shall certify to the Secretary
of the Treasury the amount of the first installment under the
most recent amortization schedule established under section
254(a). The Secretary of the Treasury shall pay into the Fund
from the General Fund of the Treasury the amount so
certified. Such payment shall be the contribution to the Fund
for that fiscal year.
``INVESTMENTS OF ASSETS OF FUND
``Sec. 256. The Secretary may request the Secretary of the
Treasury to invest such portion of the Fund as is not, in the
judgment of the Secretary, required to meet the current needs
of the Fund. Such investments shall be made by the Secretary
of the Treasury in public debt securities with maturities
suitable to the needs of the Fund, as determined by the
Secretary, and bearing interest at rates determined by the
Secretary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the
United States of comparable maturities. The income on such
investments shall be credited to and form a part of the Fund.
``IMPLEMENTATION YEAR EXCEPTIONS
``Sec. 257. (a) To avoid funding shortfalls in the first
year should formal actuarial determinations not be available
in time for budget preparation, the amounts used in the first
year in sections 255(a)(1)(A) and 255(a)(2)(A) shall be set
equal to those estimates in sections 254(b)(1)(A) and
254(b)(2)(A) if final determinations are not available. The
original unfunded liability as defined in section 254(a)
shall include an adjustment to correct for this difference
between the formal actuarial determinations and the estimates
in sections 254(b)(1)(A) and 254(b)(2)(A).''.
(b) Conforming Amendments.--
(1) Condition of detail.--Section 214 of the Public Health
Service Act (42 U.S.C. 215) is amended by adding at the end
the following new subsection:
``(e) The Secretary shall condition any detail under
subsection (a), (b), or (c) upon the agreement of the
executive department, State, subdivision, Committee of the
Congress, or institution concerned to pay to the Department
of Health and Human Services, in advance or by way of
reimbursement, for the full cost of the detail including that
portion of the contributions under section 255(a) that is
attributable to the detailed personnel.''.
(2) Exemption from sequestration.--Section 255(g)(1) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 905(g)(1)) is amended--
(A) in subparagraph (A), by inserting after the item
relating to ``payment to the foreign service retirement and
disability fund'' the following item: ``Payment to the Public
Health Service Commissioned Corps Retirement Fund (75-0380-0-
1-551);''; and
(B) in subparagraph (B), by inserting after the item
relating to the ``Pensions for former Presidents'' the
following item: ``Public Health Service Commissioned Corps
Retirement Fund (75-8274-0-7-602);''.
(c) Transfer of Appropriations.--There shall be transferred
on October 1, 2006, into the fund established under section
251 of the Public Health Service Act, as added by subsection
(a), any obligated or unobligated balances of appropriations
made to the Department of Health and Human Services that are
currently available for benefits payable on account of
retirement, disability, or death to commissioned officers of
the Public Health Service and to their survivors pursuant to
part A of title II of the Public Health Service Act, and
amounts so transferred shall be part of the assets of the
Fund.
SEC. 405. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION
COMMISSIONED OFFICER CORPS RETIREMENT SYSTEM.
(a) In General.--The National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title
II of Public Law 107-372) is amended by inserting after
section 246 (33 U.S.C. 3046) the following new section:
``Sec. 246A. (a) Establishment and Purpose of NOAA
Commissioned Officer Corps Retirement Fund.--(1) There is
established on the books of the Treasury a fund to be known
as the National Oceanic and Atmospheric Administration
Commissioned Officer Corps Retirement Fund (hereinafter in
this section referred to as the `Fund'), which shall be
administered by the Secretary. The Fund shall be used for the
accumulation of funds in order to finance on an actuarially
sound basis liabilities of the Department of Commerce under
military retirement and survivor benefit programs for the
commissioned officers corps.
``(2) The term `military retirement and survivor benefit
program' means--
``(A) the provisions of this title and title 10, United
States Code, creating entitlement to, or determining, the
amount of retired pay;
[[Page H5056]]
``(B) the programs under the jurisdiction of the Department
of Defense providing annuities for survivors and members and
former members of the Armed Forces, including chapter 73 of
title 10, section 4 of Public Law 92-425, and section 5 of
Public Law 96-202, as made applicable to the commissioned
officer corps by section 261.
``(b) Assets of the Fund.--There shall be deposited into
the Fund the following, which shall constitute the assets of
the Fund:
``(1) Amounts paid into the Fund under subsection (e).
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
405(c) of the Deficit Control Act of 2004.
``(c) Payments From the Fund.--There shall be paid from the
Fund benefits payable on account of military retirement and
survivor benefit programs to commissioned officers of the
commissioned officer corps and their survivors.
``(d) Determination of Contributions to the Fund.--(1)(A)
Not later than June 30, 2004, the Secretary shall determine
the unfunded liability of the Fund attributable to service
performed as of September 30, 2004, which is `active service'
for the purpose of this title. The Secretary shall establish
an amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for
the liquidation of such liability by October 1, 2044.
``(B) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each fiscal year beginning after September 30, 2004, through
the fiscal year ending September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on September 30 of the
subsequent fiscal year, which provides for the liquidation of
such liability by October 1, 2044.
``(C) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and
shall establish a new authorization schedule, including
series of annual installments commencing on October 1 of the
second subsequent fiscal year, which provides for the
liquidation of such liability over 5 years.
``(2) The Secretary shall determine each fiscal year, in
sufficient time for inclusion in the budget request for the
following fiscal year, the total amount of Department of
Commerce contributions to be made to the Fund during that
fiscal year under (e). The amount shall be the product of--
``(A) the current estimate of the value of the single level
percentage of basic pay to be determined under subsection (e)
at the time of the most recent actuarial valuation under
paragraph (3); and
``(B) the total amount of basic pay expected to be paid
during that fiscal year to commissioned officers of NOAA on
active duty.
``(3) Not less often then every four years (or by the
fiscal year end before the effective date of any statutory
change affecting benefits payable on account of retirement,
disability, or death to commissioned officers or their
survivors), the Secretary shall carry out an actuarial
valuation of benefits payable on account of military
retirement and survivor benefit programs to commissioned
officers of the Administration and to their survivors. Each
such actuarial valuation shall be signed by an enrolled
Actuary and shall include a determination (using the
aggregate entry-age normal cost method) of a single level
percentage of basic pay for commissioned officers on active
duty.
``(4) All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices, and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(5) The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status
of the Fund.
``(e) Payments Into the Fund.--(1) From amounts
appropriated to the National Oceanic Atmospheric
Administration for salaries and expenses, the Secretary shall
pay into the Fund at the end of each month the amount that is
the product of--
``(A) the level percentage of basic pay determined using
all the methods and assumptions approved for the most recent
(as of the first day of the current fiscal year) actuarial
valuation under subsection (d) (except that any statutory
change affecting benefits payable on account of military
retirement and survivor benefit programs to commissioned
officers of the Administration and to their survivors that is
effective date after the date of that valuation and on or
before the first day of the current fiscal year shall be used
in such determination); and
``(B) the total amount of basic pay accrued for that month
by commissioned officers on active duty.
``(2)(A) At the beginning of each fiscal year, the
Secretary shall determine the sum of--
``(i) the amount of the payment for that year under the
amortization of the original unfunded liability of the Fund;
``(ii) the amount (including any negative amount) for that
year under the most recent amortization schedule determined
by the Secretary for the amortization of any cumulative
actuarial gain or loss to the Fund, resulting from changes in
benefits; and
``(iii) the amount (including any negative amount) for that
year under the most recent amortization schedule determined
by the Secretary for the amortization or any cumulative
actuarial gain or loss to the Fund resulting from changes in
actuarial assumptions and from experience different from the
assumed since the last valuation.
The Secretary shall promptly certify the amount of the sum to
the Secretary of the Treasury.
``(B) Upon receiving the certification pursuant to
paragraph (1), the Secretary of the Treasury shall promptly
pay into the Fund from the General Fund of the Treasury the
amount so certified. Such payment shall be the contribution
to the Fund for that fiscal year.
``(f) Investment of Assets of the Fund.--The Secretary may
request the Secretary of the Treasury to invest such portion
of the Fund as is not, in the judgment of the Secretary,
required to meet the current needs of the Fund. Such
investments shall be made by the Secretary of the Treasury in
public debt securities with maturities suitable to the needs
of the Fund, as determined by the Secretary, and bearing
interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of
comparable maturities. The income of such investments shall
be credited to and form a part of the Fund.
``(g) Implementation Year Exceptions.--(1) To avoid funding
shortfalls in the first year should formal actuarial
determinations not be available in time for budget
preparation, the amounts used in the first year in subsection
(e)(1)(A) shall be set equal to the estimate in subsection
(d)(2)(A) if final determinations are not available. The
original unfunded liability as determined in subsection
(d)(1) shall include an adjustment to correct for this
difference between the formal actuarial determinations and
the estimates in subsection (d)(2)(A).''.
(b) Exemption From Sequestration.--Section 255(g)(1)(B) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 905(g)(1)(B)) is amended by striking ``National
Oceanic and Atmospheric Administration retirement (13-1450-0-
1-306);'' and inserting ``National Oceanic and Atmospheric
Administration Commissioned Officer Corps Retirement Fund;''.
(c) Transfer of Appropriations.--There shall be transferred
on October 1, 2006, into the fund established under section
246A(a) of the National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title
II of Public Law 107-372, as added by subsection (a)), any
obligated and unobligated balance of appropriations made to
the Department of Commerce that are available as of the date
of the enactment of this Act for benefits payable on account
of military retirement and survivor benefit programs to
commissioned officers of the NOAA Commissioned Officer Corps
and to their survivors, and amounts so transferred shall be
part of the assets of the Fund, effective October 1, 2006.
(d) Effective Date.--Subsection (c) (relating to payments
from the Fund) and (e) (relating to payments into the Fund)
of section 246A of the National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title
II of Public Law 107-372, as added by subsection (a)), shall
take effect on October 1, 2006.
SEC. 406. COAST GUARD MILITARY RETIREMENT SYSTEM.
(a) Accrual Funding for Coast Guard Retirement.--
(1) In general.--Chapter 11 of title 14, United States
Code, is amended by adding at the end the following new
subchapter:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``Sec. 441. Establishment and purpose of Fund; definitions
``(a) Establishment of Fund; Purpose.--There is established
on the books of the Treasury a fund to be known as the Coast
Guard Military Retirement Fund (hereinafter in this
subchapter referred to as the `Fund'), which shall be
administered by the Secretary. The Fund shall be used for the
accumulations of funds in order to finance on an actuarially
sound basis liabilities of the Coast Guard under military
retirement and survivor benefit programs.
``(b) Military Retirement and Survivor Benefit Programs
Defined.--In this subchapter, the term `military retirement
and survivor benefit programs' means--
``(1) the provisions of this title and title 10 creating
entitlement to, or determining the amount of, retired pay;
``(2) the programs providing annuities for survivors of
members and former members of the armed forces, including
chapter 73 of title 10, section 4 of Public Law 92-425, and
section 5 of Public Law 96-402; and
``(3) the authority provided in section 1048(h) of title
10.
``(c) Secretary Defined.--In this subchapter, the term
`Secretary' means the Secretary of Homeland Security when the
Coast Guard is not operating as a service in the Navy and the
Secretary of Defense when the Coast Guard is operating as a
service in the Navy.
``Sec. 442. Assets of the Fund
``There shall be deposited into the Fund the following,
which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 445 of this
title.
[[Page H5057]]
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
406(d) of the Deficit Control Act of 2004.
``Sec. 443. Payments from the Fund
``(a) In General.--There shall be paid from the Fund the
following:
``(1) Retired pay payable to persons on the retired list of
the Coast Guard.
``(2) Retired pay payable under chapter 1223 of title 10 to
former members of the Coast Guard and the former United
States Lighthouse Service.
``(3) Benefits payable under programs that provide
annuities for survivors of members and former members of the
armed forces, including chapter 73 of title 10, section 4 of
Public Law 92-425, and section 5 of Public Law 96-402.
``(4) Amounts payable under section 1048(h) of title 10.
``(b) Availability of Assets of the Fund.--The assets of
the Fund are hereby made available for payments under
subsection (a).
``Sec. 444. Determination of contributions to the Fund
``(a) Initial Unfunded Liability.--(1) Not later than June
30, 2005, the Secretary shall determine the unfunded
liability of the Fund attributable to service performed as of
September 30, 2004, which is `active service' for the
purposes of section 212. The Secretary shall establish an
amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for
the liquidation of such liability by October 1, 2044.
``(2) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and
shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the
second subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(b) Annual Contributions for Current Services.--(1) The
Secretary shall determine each fiscal year, in sufficient
time for inclusion in the budget request for the following
fiscal year, the total amount of Department of Homeland
Security, or Department of Defense, contributions to be made
to the Fund during that fiscal year under section 445(a) of
this title. That amount shall be the sum of the following:
``(A) The product of--
``(i) the current estimate of the value of the single level
percentage of basic pay to be determined under subsection
(c)(1)(A) at the time of the most recent actuarial valuation
under subsection (c); and
``(ii) the total amount of basic pay expected to be paid
during that fiscal year to members of the Coast Guard on
active duty (other than active duty for training).
``(B) The product of--
``(i) the current estimate of the value of the single level
percentage of basic pay and of compensation (paid pursuant to
section 206 of title 37) to be determined under subsection
(c)(1)(B) at the time of the most recent actuarial valuation
under subsection (c); and
``(ii) the total amount of basic pay and compensation (paid
pursuant to section 206 of title 37) expected to be paid
during that fiscal year to members of the Coast Guard Ready
Reserve (other than members on full-time Reserve duty other
than for training) who are not otherwise described in
subparagraph (A)(ii).
``(2) The amount determined under paragraph (1) for any
fiscal year is the amount needed to be appropriated to the
Department of Homeland Security for that fiscal year for
payments to be made to the Fund during that year under
section 445(a) of this title. The President shall include not
less than the full amount so determined in the budget
transmitted to Congress for that fiscal year under section
1105 of title 31. The President may comment and make
recommendations concerning any such amount.
``(c) Periodic Actuarial Valuations.--(1) Not less often
than every four years (or before the effective date of any
statutory change affecting benefits payable on account of
retirement, disability, or death to members of the Coast
Guard or their survivors), the Secretary shall carry out an
actuarial valuation of the Coast Guard military retirement
and survivor benefit programs. Each actuarial valuation of
such programs shall be signed by an enrolled actuary and
shall include--
``(A) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
members of the Coast Guard on active duty (other than active
duty for training); and
``(B) a determination (using the aggregate entry-age normal
cost method) of single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37) for
members of the Ready Reserve of the Coast Guard (other than
members on full-time Reserve duty other than for training)
who are not otherwise described in subparagraph (A).
``(2) Such single level percentages shall be used for the
purposes of subsection (b) and section 445(a) of this title.
``(d) Use of Generally Accepted Actuarial Principles and
Practices.--All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(e) Records.--The Secretary shall provide for the keeping
of such records as are necessary for determining the
actuarial status of the Fund.
``Sec. 445. Payments into the Fund
``(a) Monthly Accrual Charge for Current Services.--From
amounts appropriated to the Coast Guard for salaries and
expenses, the Secretary shall pay into the Fund at the end of
each month as the Department of Homeland Security, or
Department of Defense, contribution to the Fund for that
month the amount that is the sum of the following:
``(1) The product of--
``(A) the level percentage of basic pay determined using
all the methods and assumptions approved for the most recent
(as of the first day of the current fiscal year) actuarial
valuation under section 444(c)(1)(A) of this title (except
that any statutory change in the military retirement and
survivor benefit systems that is effective after the date of
that valuation and on or before the first day of the current
fiscal year shall be used in such determination); and
``(B) the total amount of basic pay accrued for that month
by members of the Coast Guard on active duty (other than
active duty for training).
``(2) The product of--
``(A) the level percentage of basic pay and compensation
(accrued pursuant to section 206 of title 37) determined
using all the methods and assumptions approved for the most
recent (as of the first day of the current fiscal year)
actuarial valuation under section 444(c)(1)(B) of this title
(except that any statutory change in the military retirement
and survivor benefit systems that is effective after the date
of that valuation and on or before the first day of the
current fiscal year shall be used in such determination); and
``(B) the total amount of basic pay and of compensation
(paid pursuant to section 206 of title 37) accrued for that
month by members of the Ready Reserve (other than members of
full-time Reserve duty other than for training) who are not
otherwise described in paragraph (1)(B).
``(b) Annual Payment for Unfunded Liabilities.--(1) At the
beginning of each fiscal year, beginning on October 1, 2005,
the Secretary shall certify to the Secretary of the Treasury
the amount of the first installment under the most recent
amortization schedule established under section 254(a). The
Secretary of the Treasury shall promptly pay into the Fund
from the General Fund of the Treasury the amount so
certified. Such payment shall be the contribution to the Fund
for that fiscal year.
``Sec. 446. Investment of assets of the Fund
``The Secretary may request the Secretary of the Treasury
to invest such portion of the Fund as is not, in the judgment
of the Secretary, required to meet the current needs of the
Fund. Such investments shall be made by the Secretary of the
Treasury in public debt securities with maturities suitable
to the needs of the Fund, as determined by the Secretary, and
bearing interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of
comparable maturities. The income on such investments shall
be credited to and form a part of the Fund.''.
(2) Technical amendments.--Such chapter is further
amended--
(A) by amending the center heading after the table of
sections to read as follows:
``SUBCHAPTER I--OFFICERS'';
(B) by amending the center heading after section 336 to
read as follows:
``SUBCHAPTER II--ENLISTED MEMBERS'';
(C) by amending the center heading after section 373 to
read as follows:
``SUBCHAPTER III--GENERAL PROVISIONS'';
and
(D) by amending the center heading after section 425 to
read as follows:
``SUBCHAPTER IV--SPECIAL PROVISIONS''.
(3) Clerical amendments.--The table of sections at the
beginning of such chapter is amended--
(A) by striking ``officers'' at the beginning of the table
and inserting ``subchapter i--officers'';
(B) by striking ``enlisted members'' after the item
relating to section 336 and inserting ``subchapter ii--
enlisted members'';
(C) by striking ``general provisions'' after the item
relating to section 373 and inserting ``subchapter iii--
general provisions'';
(D) by striking ``special provisions'' after the item
relating to section 425 and inserting ``subchapter iv--
special provisions''; and
(E) by adding at the end the following:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``441. Establishment and purpose of Fund; definitions.
[[Page H5058]]
``442. Assets of the Fund.
``443. Payments from the Fund.
``444. Determination of contributions to the Fund.
``445. Payments into the Fund.
``446. Investment of assets of the Fund.''.
(b) Implementation Year Exceptions.--To avoid funding
shortfalls in the first year of implementation of subchapter
V of chapter 11 of title 14, United States Code, as added by
subsection (a), if formal actuarial determinations are not
available in time for budget preparation, the amounts used in
the first year under sections 445(a)(1)(A) and 445(a)(2)(A)
of such title shall be set equal to those estimates in
sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively,
of such title if final determinations are not available. The
original unfunded liability, as defined in section 444(a) of
such title, shall include an adjustment to correct for this
difference between the formal actuarial determinations and
the estimates in sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i)
of such title.
(c) Conforming Amendment.--Subparagraph (B) of section
255(g)(1) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 905(g)(1)) is amended by
striking ``Retired Pay, Coast Guard (69-0241-0-1-403)'' and
inserting ``Coast Guard Military Retirement Fund (69-0241-01-
403)''.
(d) Transfer of Existing Balances.--
(1) Transfer.--There shall be transferred into the Fund on
October 1, 2005, any obligated and unobligated balances of
appropriations made to the Department of Homeland Security
that are currently available for retired pay, and amounts so
transferred shall be part of the assets of the Fund.
(2) Fund defined.--For purposes of paragraph (1), the term
``Fund'' means the Coast Guard Military Retirement Fund
established under section 441 of title 14, United States
Code, as added by subsection (a).
(e) Effective Date.--Sections 443 (relating to payments
from the Fund) and 445 (relating to payments into the Fund)
of title 14, United States Code, as added by subsection (a),
shall take effect on October 1, 2005.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
SEC. 411. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.
(a) Section 8906 of title 5, United States Code, is
amended--
(1) by redesignating subsection (c) as subsection (c)(1)
and by adding at the end the following new paragraphs:
``(2) In addition to Government contributions required by
subsection (b) and paragraph (1), each employing agency shall
contribute amounts as determined by the Office to be
necessary to prefund the accruing actuarial cost of post-
retirement health benefits for each of the agency's current
employees who are eligible for Government contributions under
this section. Amounts under this paragraph shall be paid by
the employing agency separate from other contributions under
this section, from the appropriations or fund used for
payment of the salary of the employee, on a schedule to be
determined by the Office.
``(3) Paragraph (2) shall not apply to the United States
Postal Service or the government of the District of
Columbia.''; and
(2) by amending subsection (g)(1) to read as follows:
``(g)(1) Except as provided in paragraphs (2) and (3), all
Government contributions authorized by this section for
health benefits for an annuitant shall be paid from the
Employees Health Benefits Fund to the extent that funds are
available in accordance with section 8909(h)(6) and, if
necessary, from annual appropriations which are authorized to
be made for that purpose and which may be made available
until expended.''.
(b) Section 8909 of title 5, United States Code, is amended
by adding at the end the following new subsection:
``(h)(1) Not later than June 30, 2006, the Office shall
determine the existing liability of the Fund for post-
retirement health benefits, excluding the liability of the
United States Postal Service for service under section
8906(g)(2), under this chapter as of September 30, 2006. The
Office shall establish an amortization schedule, including a
series of annual installments commencing September 30, 2006,
which provides for the liquidation of such liability by
September 30, 2043.
``(2) At the close of each fiscal year, for fiscal years
beginning after September 30, 2005, the Office shall
determine the supplemental liability of the Fund for post-
retirement health benefits, excluding the liability
attributable to the United States Postal Service for service
subject to section 8906(g)(2), and shall establish an
amortization schedule, including a series of annual
installments commencing on September 30 of the subsequent
fiscal year, which provides for liquidation of such
supplemental liability over 30 years.
``(3) Amortization schedules established under this
paragraph shall be set in accordance with generally accepted
actuarial practices and principles.
``(4) At the end of each fiscal year on and after September
30, 2006, the Office shall notify the Secretary of the
Treasury of the amounts of the next installments under the
most recent amortization schedules established under
paragraphs (1) and (2). Before closing the accounts for the
fiscal year, the Secretary shall credit the sum of these
amounts (including in that sum any negative amount for the
amortization of the supplemental liability) to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.
``(5) For the purpose of carrying out paragraphs (1) and
(2), the Office shall perform or arrange for actuarial
determinations and valuations and shall prescribe retention
of such records as it considers necessary for making periodic
actuarial valuations of the Fund.
``(6) Notwithstanding subsection (b), the amounts deposited
into the Fund pursuant to this subsection and section
8906(c)(2) to prefund post-retirement health benefits costs
shall be segregated within the Fund so that such amounts, as
well as earnings and proceeds under subsection (c)
attributable to them, may be used exclusively for the purpose
of paying Government contributions for post-retirement health
benefits costs. When such amounts are used in combination
with amounts withheld from annuitants to pay for health
benefits, a portion of the contributions shall then be set
aside in the Fund as described in subsection (b).
``(7) Under this subsection, `supplemental liability'
means--
``(A) the actuarial present value for future post-
retirement health benefits that are the liability of the
Fund, less
``(B) the sum of--
``(i) the actuarial present value of all future
contributions by agencies and annuitants to the Fund toward
those benefits pursuant to section 8906;
``(ii) the present value of all scheduled amortization
payments to the Fund pursuant to paragraphs (1) and (2);
``(iii) the Fund balance as of the date the supplemental
liability is determined, to the extent that such balance is
attributable to post-retirement benefits; and
``(iv) any other appropriate amount, as determined by the
Office in accordance with generally accepted actuarial
practices and principles.''.
SEC. 412. FUNDING UNIFORMED SERVICES HEALTH BENEFITS FOR ALL
RETIREES.
Title 10, United States Code, is amended--
(1) in the title of chapter 56, by striking ``DEPARTMENT OF
DEFENSE MEDICARE-ELIGIBLE'' and inserting ``UNIFORMED
SERVICES'';
(2) in section 1111--
(A) in subsection (a)--
(i) by striking ``Department of Defense Medicare-Eligible''
and inserting ``Uniformed Services'';
(ii) by striking ``Department of Defense under''; and
(iii) by striking ``for medicare-eligible beneficiaries'';
(B) in subsection (c)--
(i) by striking ``The Secretary of Defense may'' and
inserting ``The Secretary of Defense shall'';
(ii) by striking ``with any other'' and inserting ``with
each'';
(iii) by striking ``Any such agreement'' and inserting
``Such agreements''; and
(iv) by striking ``administering Secretary may'' and
inserting ``administrative Secretary shall'';
(3) in section 1113--
(A) in subsection (a)--
(i) by striking ``and are medicare eligible'';
(ii) by striking ``who are medicare eligible''; and
(iii) by adding at the end the following new sentence:
``For the fiscal year starting October 1, 2004, only, the
payments will be solely for the costs of members or former
members of a uniformed service who are entitled to retired or
retainer pay and are medicare-eligible, and eligible
dependents or survivors who are medicare-eligible.'';
(B) in subsection (c)(1), by striking ``who are medicare-
eligible'';
(C) in subsection (d), by striking ``who are medicare-
eligible''; and
(D) in subsection (f), by striking ``If'' and inserting
``When'';
(4) in section 1114, in subsection (a)(1), by striking
``Department of Defense Medicare-Eligible'' and inserting
``Uniformed Services'';
(5) in section 1115--
(A) in subsection (b)(2), by striking ``The amount
determined under paragraph (1) for any fiscal year is the
amount needed to be appropriated to the Department of Defense
(or to the other executive department having jurisdiction
over the participating uniformed service)'' and inserting
``The amount determined under paragraph (1), or the amount
determined under section 1111(c) for a participating
uniformed service, for any fiscal year, is the amount needed
to be appropriated to the Department of Defense (or to any
other executive department having jurisdiction over a
participating uniformed service)'';
(B) in subsection (c)(2), by striking ``for medicare
eligible beneficiaries''; and
(C) by adding at the end the following new subsection:
``(f) For the fiscal year starting October 1, 2004, only,
the amounts in this section shall be based solely on the
costs of medicare-eligible benefits of beneficiaries and the
costs for their eligible dependents or survivors who are
medicare-eligible, and shall be recalculated thereafter to
reflect the cost of beneficiaries defined in section 1111.'';
and
(6) in section 1116--
(A) in subsection (a)(1)(A), by striking ``for medicare-
eligible beneficiaries'';
(B) in subsection (a)(2)(A), by striking ``for medicare-
eligible beneficiaries''; and
(C) in subsection (c), by striking ``subsection (a) shall
be paid from funds available
[[Page H5059]]
for the health care programs'' and inserting ``subsection (a)
and section 1111(c) shall be paid from funds available for
the pay of members of the participating uniformed services
under the jurisdiction of the respective administering
secretaries''.
SEC. 413. EFFECTIVE DATE.
Except as otherwise provided, this title shall take effect
upon enactment with respect to fiscal years beginning after
2005.
``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for
Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost
account.
``Sec. 606. Effective date.''.
Subtitle C--Limit on the Public Debt
SEC. 421. LIMIT ON PUBLIC DEBT.
Section 3101 of title 31, United States Code, is amended to
read as follows:
``Sec. 3101. Public debt limit
``(a) In this section, the current redemption value of an
obligation issued on a discount basis and redeemable before
maturity at the option of its holder is deemed to be the face
amount of the obligation.
``(b) The face amount of obligations issued under this
chapter and the face amount of obligations whose principal
and interest are guaranteed by the United States Government
(except guaranteed obligations held by the Secretary of the
Treasury and intragovernmental holdings) may not be more than
$4,393,000,000,000 outstanding at one time, subject to
changes periodically made in that amount as provided by law.
``(c) For purposes of this section, the face amount, for
any month, of any obligation issued on a discount basis that
is not redeemable before maturity at the option of the holder
of the obligation is an amount equal to the sum of--
``(1) the original issue price of the obligation, plus
``(2) the portion of the discount on the obligation
attributable to periods before the beginning of such month
(as determined under the principles of section 1272(a) of the
Internal Revenue Code of 1986 without regard to any
exceptions contained in paragraph (2) of such section).
``(d) For purposes of this section, the term
`intragovernment holding' is any obligation issued by the
Secretary of the Treasury to any Federal trust fund or
Government account, whether in respect of public money, money
otherwise required to be deposited in the Treasury, or
amounts appropriated.''.
TITLE V--PAYGO EXTENSION
SEC. 501. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.
(a) Purpose.--Section 252(a) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``(a) Purpose.--The purpose of this section is to assure
that any legislation that is enacted before October 1, 2007,
that causes a net increase in direct spending will trigger an
offsetting sequestration.''.
(b) Timing.--Section 252(b)(1) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by striking
``any net deficit increase'' and all that follows through
``2002,'' and by inserting ``any net increase in direct
spending enacted before October 1, 2007,''.
(c) Calculation of Direct Spending Increase.--Section
252(b)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended--
(1) by striking ``deficit'' the first place it appears and
inserting ``direct spending'';
(2) in subparagraph (A) by striking ``and receipts'';
(3) in subparagraph (C) by striking ``and receipts''; and
(4) by amending the heading to read as follows:
``Calculation of direct spending increase.--''.
(d) Conforming Amendments.--(1) The heading of section
252(c) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended to read as follows: ``Eliminating a
Direct Spending Increase.--''.
(2) Paragraphs (1), (2), and (4) of section 252(d) of the
Balanced Budget and Emergency Deficit Control Act of 1985 are
amended by striking ``or receipts'' each place it appears.
(3) Section 252(e) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking ``or
receipts'' and by striking ``, outlays, and receipts'' and
inserting ``and outlays''.
(4) Section 254(c)(3) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended--
(A) in subparagraph (A) by striking ``net deficit increase
or decrease'' and by inserting ``net increase or decrease in
direct spending'';
(B) in subparagraph (B) by striking ``amount of deficit
increase or decrease'' and by inserting ``increase or
decrease in direct spending''; and
(C) in subparagraph (C) by striking ``a deficit increase''
and by inserting ``an increase in direct spending''.
The CHAIRMAN pro tempore. Pursuant to House Resolution 692, the
gentleman from Illinois (Mr. Kirk) and a Member opposed each will
control 15 minutes.
The Chair recognizes the gentleman from Illinois (Mr. Kirk).
Mr. KIRK. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I urge support for the Republican Consensus Budget
Substitute. In sum, the consensus substitute saves $445 billion to help
protect Social Security and Medicare.
This substitute includes 10 consensus principles that help restrain
spending and make it difficult to create new government programs. It
represents the work of the Conservative Republican Study Committee and
the Moderate Republican Tuesday Group to put spending restraint as a
core value of this Congress.
We know that Medicare's unfunded liability is in the red $21
trillion. We know that Social Security's unfunded liability is in the
red $10 trillion. In just 5 years, the first baby boomers will start
collecting Social Security checks. The number of people collecting
Social Security checks will then climb from 40 million Americans to 80
million Americans. To honor our commitment to Social Security and
Medicare, we must restrain spending on other programs. Our substitute
would cut the growth of other entitlement programs by $445 billion,
saving that to meet our Social Security and Medicare commitments.
Now, the Federal Government has made two important promises to the
American people: one, to provide for the common defense; and, two, to
ensure some retirement security. To honor those expensive financial
commitments, we must hold back spending on other programs to keep those
promises. In this substitute, we do some things, and we do not do other
things. We do not cut Social Security and Medicare. We do honor our
commitment to America's retirement security.
And we have other reforms. Ten reforms. They are: a rainy day fund
for emergencies, so that we stop our process of emergency
appropriations outside the budget.
We have baselines without automatic spending increase inflation
adjustments, to begin to slow down the process of spending.
We have annual caps to make sure that we can keep track of the actual
budget targets we set.
We have spending controls, automatic reductions, in non-Social
Security, non-Medicare accounts to make sure that a budget we pass is
one that we actually keep.
We keep promises to seniors by ensuring that Social Security and
Medicare are not cut and have additional resources at the government's
command to make sure that those programs are strengthened.
We have enhanced rescission protections to make sure that the
President would be able to eliminate pork barrel spending projects,
like greenhouses in Iowa.
We would be able to also focus on government inefficiencies with a
new bipartisan commission.
We would be able to have proper accounting of long-term liability
through accrual accounting.
We also have a clear showing of the Federal debt through more
transparent reforms.
And, lastly, we maintain our fiscal discipline by making sure pay-as-
you-go rules apply to entitlement spending.
Now, many criticize this effort, because while we do not touch Social
Security or Medicare, we do hold other spending to the rate of
inflation. Some say we must allow government spending to grow much
faster than inflation. But if spending grows faster than taxes, we will
run out of money; and every senior knows that.
Even Senator Kerry does not agree with the Center on Budget and
Policy Priorities. They say that we cannot slow health care costs. But
Senator Kerry disagrees. And in his latest TV ad he says the following,
and I quote: ``We spend about $1.5 trillion every year on health care
in America. $350 billion of that has nothing to do with care. It is all
paperwork. We will literally save billions of dollars in health care
costs in America by becoming more streamlined and more efficient.'' And
he could not be more right.
Ask your seniors a question: Should we cut other entitlement programs
so that $445 billion can go to protect Social Security and Medicare?
Our seniors are savvy citizens. They know that spending in other
programs threatens the long-term future of Social Security and
Medicare, and they know that the retirement of the baby boom means that
we will need to cut other programs to protect Social Security and
Medicare.
[[Page H5060]]
Mr. Chairman, I urge adoption of the substitute.
Mr. Chairman, I reserve the balance of my time.
Mr. NUSSLE. Mr. Chairman, I claim the time in opposition, and I ask
unanimous consent that half of that time be yielded to the gentleman
from South Carolina (Mr. Spratt).
The CHAIRMAN pro tempore. Without objection, the gentleman from South
Carolina (Mr. Spratt) and the gentleman from Iowa (Mr. Nussle) each
will control 7\1/2\ minutes.
There was no objection.
The CHAIRMAN pro tempore. The Chair recognizes the gentleman from
Iowa (Mr. Nussle).
Mr. NUSSLE. Mr. Chairman, I reserve the balance of my time.
Mr. SPRATT. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, the Kirk substitute is Hensarling light, just as
objectionable for most of the same reasons, only less so.
He just put up his sign over there which said it would save $445
billion and which could be spent on Medicare and Social Security. That
is the estimated savings produced by the Center on Budget and Policy
Priorities. The gentleman from Illinois (Mr. Kirk) just said they are
wrong, and yet he was holding up a sign indicating that the savings
that he would accomplish are just what they indicated they would be.
{time} 2245
So he saves $445 billion for Medicare but he gets it by taking $175
billion out of Medicaid, $50 billion out of Federal civil service
retirement and disability, $28 billion out of military retirement, $22
billion out of veterans' benefits, on down the list. That is how that
$445 billion adds up. He limits the safety net programs to 2 percent.
It is true, he picks out some programs that are sensitive, we might
call them safety net programs, and he provides they will not be cut
more than 2 percent, another difference between him and the gentleman
from Texas.
But this provision means that other programs are not deemed to be
sensitive and they include child care payments, price supports, farm
price supports, crop insurance, TRICARE military health benefits, among
others; these face unlimited cuts, larger cuts because the other
programs are shielded. These cuts could reach 43 percent by 2014 based
on current projections according to the Center on Budget and Policy
Priorities.
So this particular substitute is just as bad, only not in dollar
terms quite as great, it is just as flawed, has just as many anomalies
in it, and for the same reason should be rejected by everyone in this
House.
Mr. Chairman, I reserve the balance of my time.
Mr. KIRK. Mr. Chairman, I yield 4 minutes to the gentleman from
Delaware (Mr. Castle), the chairman of the moderate Republican Tuesday
Group.
Mr. CASTLE. I thank the gentleman for yielding me this time.
Mr. Chairman, I rise in support of the Kirk substitute and encourage
my colleagues to support this compromise approach. I know this is
ancient history, but in the 1970s, my home State of Delaware struggled
greatly. I know it is a small State, but we were not balancing budgets,
we were borrowing money and had the highest tax rate in the United
States of America, a 19.8 percent personal income tax rate. In an
effort to rectify the situation, the business community got together
with then Governor Pete DuPont and decided they had to make procedural
changes. These changes included rainy day funds, other set-asides,
estimates of revenues, and procedures.
These have been in place, and enforced, since then, resulting in a
balanced budget every year. In my opinion, the fact that Delaware has a
strongly enforced process has led us to have one of the healthiest
economic reports of any State in the country. I am particularly pleased
that this substitute includes some of the specific provisions that made
such a difference in the State of Delaware.
But as we all know, the existence of process is not enough. It must
be enforced. I believe we can all agree on that. At the Federal
Government level, we see a great deal of unenforced process when it
comes to budgets and appropriations. This leads one to often wonder why
we bother doing it. We can do something about this. Enforced process
could make a vast difference, not necessarily in balancing the budget
but in the reliability of our process. Oversight is also imperative in
the enforcement of the process, something I would argue that is not
done well in the Congress of the United States.
Finally, any measure of reforming the budget process should improve
the transparency of our practice. Our procedure should empower
Americans to hold us accountable for our choices. Eliminating
structural impediments and obvious loopholes in the process would be a
great step in this direction and could improve our ability to pass a
budget resolution and individual appropriations bills.
Months ago, the gentleman from Illinois and I got together in an
attempt to develop a package that represented a host of balanced
approaches to restrain spending and control deficits, including
process, oversight, enforcement and transparency. I would like to only
highlight a couple of the provisions in the substitute.
We recognized that it was important to create a bipartisan
congressional commission to identify wasteful spending and the Kirk
substitute includes such a demand on our oversight responsibilities. As
we work to get our financial House in order, we must be willing to
identify where we are wasting money. While we do have a number of
mechanisms at the Federal level to study the effectiveness and
efficiency of programs, I do believe we should be paying more attention
to wasteful spending each budget cycle.
Today's substitute also addresses PAYGO. I support full PAYGO and
believe that both revenues and spending should be included. I have long
been arguing that to truly balance our budget everything really should
be on the table. I recognize, however, that compromise is a necessity
in Congress; without it we can debate ourselves silly, but in the end
it is compromise that moves this country forward. For that reason, I
support today's substitute despite the fact that it is not full PAYGO.
In an effort to ensure we are abiding by PAYGO rules, today's
substitute includes automatic sequesters. This is difficult to swallow,
and most of us would never want a sequester triggered. It is, however,
necessary to establish boundaries. Unfortunately, many guidelines we
have used to control spending and reduce deficits have been and
continue to be circumvented. The automatic sequester will require us to
live within the guidelines we have set for ourselves, ultimately
helping to balance our country's budget.
The Kirk substitute takes a very balanced approach to meeting in the
middle. I am in full support of this substitute and encourage its
passage.
Mr. SPRATT. Mr. Chairman, I yield 2 minutes to the gentleman from
North Dakota (Mr. Pomeroy).
Mr. POMEROY. Mr. Chairman, I have a lot of respect for the sponsor of
this amendment and the gentleman who just spoke, but let me make it
very clear. There is nothing moderate about this proposal. Not to be
too graphic, but imagine going to the deli. The person puts that little
ham or turkey up there and an automatic slicer starts going. Just
imagine further that the slicer keeps going until the hand goes into
the slicer, up to the wrist, up to the forearm. Not a pretty picture.
This is the budget equivalent that is created in this bill. It puts
automatic cuts in place by a process and then those cuts cut and they
cut. They cut the fat, they cut the skin, they cut the meat, they cut
the bone. They cut and they cut and they cut.
Entitlement caps under this proposal would devastate so many
programs: Medicaid, medical assistance to the poor, estimated cut at
$175 billion. The President of the American Legion has written to
express his profound concern about entitlement caps, as well he should
because the projected cuts of the Kirk proposal, $28 military
retirement and disability, $22 billion veterans' benefits, TRICARE for
life, $6 billion.
We also see student loans once again taking a hit. They also hard
freeze other programs, discretionary programs, no inflation. That means
again put the automatic slicer in place and the cuts start happening.
The cuts
[[Page H5061]]
under that proposal alone on discretionary programs would take, as a
proportion of the Federal Government discretionary program, spending
down to a level not seen since Herbert Hoover was President. Herbert
Hoover was a Republican. And he was the last Republican other than the
existing President to have a job loss under their administration.
It appears that this is no accident. Herbert Hoover seems to be
someone that they aspire to, because this economic plan takes the
Federal Government to the days of Herbert Hoover. There is nothing
moderate about it. Reject it.
Mr. KIRK. Mr. Chairman, I yield 1 minute to the gentlewoman from
Pennsylvania (Ms. Hart).
Ms. HART. Mr. Chairman, I thank the gentleman from Illinois for
yielding time. The facts are simple. When we look at the facts, we see
that our spending here in the Federal Government has increased by
significantly more from year to year in the last 4 years than has the
family budget. If we are spending more from year to year than families
are earning from year to year, I think it is obvious that we are taking
too much money from the general public. It is important for us to live
within our means like they have to do.
This amendment that the gentleman from Illinois has offered will help
us do that. It sets caps. It forces us to keep within the budget that
we state that we will keep within. It is that simple. It is an
enforcement mechanism. It forces us to identify waste. It forces us to
eliminate waste. Clearly we have not done that if we look at the chart.
What is also important about this amendment is that it protects
Social Security and Medicare, so our seniors will not lose. It is
important for us to live within a budget. It is important for us to
protect our seniors. I urge support of the Kirk amendment.
Mr. SPRATT. Mr. Chairman, I yield 2 minutes to the gentleman from
Virginia (Mr. Moran).
Mr. MORAN of Virginia. Mr. Chairman, how nice it would be if we could
come up with a magic bullet to all of a sudden fix our fiscal crisis,
but it is not that easy. It certainly is not going to be fixed by
radical proposals like this. I say radical because this would cut
spending in domestic discretionary programs, including defense. In
fact, defense would be cut by $1.1 trillion, it is estimated, over the
next decade. We could go down a long list of programs that would be
deeply cut, but really what is at stake here is a fundamental
philosophy. The proposal as most of the other proposals, in fact, I
think all of the amendments and substitutes tonight, would exempt tax
cuts. We exempt tax cuts because we do not want to hurt the most
affluent people in this country.
The richer you are, the more benefit you get from tax cuts. But the
poorer you are, the more dependent you are upon entitlement programs,
Medicare, Medicaid, food stamps, child nutrition, foster care,
disability payments, veterans' benefits. Those go to people who need
help, to enable us to have a civil society in this country, not a
survival of the fittest.
Some people are not born into wealth. Some people have disabilities.
Some people suffer all their lives through the accident of birth. Yet
what we would do with these proposals to try to balance the budget is
to afford the tax cuts by taking the money away from the people who
need it the most. We will take it from Medicaid, we will take it from
student loans, we will take it from child nutrition, from food stamps.
To heck with them. Veterans. They are out there risking their lives for
us and most of them are not the children of affluent and middle-class
families.
This is a perverse budget amendment as have been the other
substitutes. It is a simplistic proposal that ought to be soundly
defeated. I urge defeat of this substitute amendment.
Mr. SPRATT. Mr. Chairman, I yield myself the balance of my time.
My good friend, the gentleman from Illinois, comes to the floor and
he acknowledges, he touts this amendment as requiring cuts that equal
$445 billion over the next 10 years in entitlement programs, except for
Social Security and Medicare, but they come out of Medicaid and Federal
civil service retirement and military retirement and family support and
TRICARE for life.
The list goes on and on. He acknowledges that these programs will be
cut by $445 billion. But he holds up the sign and says, but look, this
money can be used to shore up Medicare and Social Security. But I defy
you to read this substitute and find in it one line, one word, anything
that will say that these savings must go to Social Security or
Medicare. More likely than not, they will be used to offset tax cuts,
maybe to offset the deficit but unlikely they will go to Social
Security and Medicare. So what we have here is an across-the-board
entitlement cap proposal that by the author's own acknowledgment will
cut key programs by a substantial amount. It does protect some,
limiting the cuts to 2 percent. But by limiting the cuts in some to 2
percent, the Center on Budget and Policy Priorities makes it clear that
this provision means that other programs, child care payments, farm
price supports, crop insurance, TRICARE military benefits, face
unlimited cuts that could reach 43 percent by 2014.
Unless you want to vote for this kind of Draconian budget, vote
against the Kirk amendment.
Mr. KIRK. Mr. Chairman, I yield myself such time as I may consume. We
have an argument here. One side urges spending restraint and the other
side urges higher taxes. I lean toward spending restraint and believe
that Americans are taxed enough. This Congress was run by the other
party in the 1980s and we raised taxes back then. But spending went up
even faster than we raised taxes. We remember in the 1980s that for
every $1 in taxes raised, the Congress lifted spending by $1.24.
Therefore, taxes went up and so did the deficit.
Ask your seniors this question. Should we cut other programs to make
sure that we have $445 billion to help protect Social Security? The
gentleman asks, what commitment is there by the United States
Government to make sure that these savings go to Social Security and
Medicare? As I referred to in my opening, we have an unfunded liability
in Medicare of $21 trillion, and we have an unfunded liability in
Social Security of $10 trillion. There is a sacred bond and a piece of
paper from the Treasury Department to the Social Security
Administration that says that the American taxpayer will honor these
debts.
{time} 2300
But with what money? Ask seniors this question: Should we cut
entitlement spending to make sure that the money is there for Social
Security and Medicare? Should we make sure that their basic retirement
security and their basic health care program has the money it needs to
cover those sacred promises?
As I said before, we made two sacred promises to the people of the
United States: one, that we would provide for the common defense. We
made that promise in 1776. And, two, that we would protect at a minimum
level their retirement security. But as I said, we are $21 trillion in
the hole on Medicare and $10 trillion in the hole on Social Security.
To honor those commitments, we have got to restrain spending. We have
got to make sure that we have the money available to protect America's
seniors, and with that I urge adoption of the substitute.
Mr. Chairman, I yield back the balance of my time.
Mr. NUSSLE. Mr. Chairman, I yield myself the balance of my time.
I say first to my friend from Illinois, great job. He and the
gentleman from Delaware (Mr. Castle) have probably done something here
tonight that none of the other amendments or substitutes even attempted
to do, and that was to bridge the many varied ideas within our
conference into one document, one amendment, one substitute.
It is going to have some opposition because it is imperfect. This
entire day, one could argue, was an imperfect day. Some may have a
different way of putting it, but today was about controlling spending.
And as far as I am concerned, any day we can debate how to control
spending is a good day. At the end of this day, and we are getting
close to the end of the day, it is possible nothing will pass and there
will be some people, including myself as I am driving back home,
wondering why did we go through this then, if, in fact, absolutely
nothing passes?
[[Page H5062]]
That is not going to be easy to necessarily understand for everybody
that is listening except that we have got to start this discussion. We
really do. I mean, there are too many situations out there that are
going unchecked. They are going unchecked in the appropriations
process. They are going unchecked in the authorization process. They
are unchecked in the way we spend money on the discretionary side. They
are going unchecked in the way we spend money on the mandatory side.
And today was a discussion about how we can finally bring that into a
system to put it into some modicum of check and balance.
It is not going to be easy to figure out. We saw a lot of different
votes today from Members who oppose some things, they support others.
The bottom line is we had to have this discussion. We had to have this
debate. We had to have it out here on the floor in the light of day
because nothing was working behind the scenes either. But we knew that
we had to have this debate in order to begin the discussion about how
we are going to control spending.
This is not about tax increases. I know the other side wants to have
a tax increase. In fact, we had one of those debates earlier today on
an Obey resolution that wanted to increase taxes. That is fine. We
defeated that. This is not about an increase in taxes. The motion to
recommit is going to be automatic tax increases. The motion to recommit
this bill is going to say we ought to have what is called pay-as-you-
go, as we described, for taxes or for revenue. All that is going to do
is amount to an automatic tax increase that we do not need.
Today is going to be focused on spending, on controlling spending;
and that is why we have we will have, as our last vote today, an
opportunity on the base bill to vote up or down whether or not we want
to have 2 years of caps for discretionary spending and pay-as-you-go
for mandatory spending. That is what the vote will be about, and we
will have the opportunity to support that or oppose that.
But let me remind us why we are doing it. We are doing it because
these are the only two measures of spending control and budget
enforcement that have proven to work anytime in the last 20 years, the
only two, short of our own personal restraint and ability to vote.
And that is the last thing I would remind Members. Even if this does
not pass tonight, even if nothing passes tonight, we are going to go
back into the appropriations process. We will go back into the
authorization process. And in that process, Members cannot just say let
us turn this over to somebody else to do or another process to enforce.
They have got to enforce controlling spending with every single vote
they cast on this floor throughout the year. This cannot be the only
time we discuss this in a process or try to blame someone else. We have
got to start doing it on a day-to-day basis in the oversight we do and
the votes that we cast on the floor.
Mr. KIRK. Mr. Chairman, will the gentleman yield?
Mr. NUSSLE. I yield to the gentleman from Illinois.
Mr. KIRK. Mr. Chairman, I do want to commend the gentleman for a very
trying and difficult debate. But this was one of the few times in the
Congress where we did not have a scripted debate. This was one of the
few times where we did not know how the votes would turn out. And the
American people have seen that we are now wrestling with a very
difficult problem of how to bring spending under control so that we
meet the commitments to Social Security, to Medicare, to the Nation's
defense that we have already made.
Mr. NUSSLE. Mr. Chairman, reclaiming my time, the good news is it is
working. The deficit this year will be reduced by almost $100 billion,
we are hearing reports already, over what was predicted just 6 months
ago, $100 billion because of the work that we are doing reducing the
deficit, which helps keep that economy moving. That is good news. We
have got to do more. We have got to continue the debate. This is the
first step in controlling spending.
Unfortunately, I do not think we are going to pass much today, but we
needed to begin that debate today.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore (Mr. Walden of Oregon). The question is on
the amendment in the nature of a substitute offered by the gentleman
from Illinois (Mr. Kirk).
The question was taken; and the Chairman pro tempore announced that
the ayes appeared to have it.
Mr. KIRK. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Illinois
(Mr. Kirk) will be postponed.
Sequential Votes Postponed In Committee Of The Whole
The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII,
proceedings will now resume on those amendments on which further
proceedings were postponed, in the following order: amendment No. 16
offered by the gentleman from Texas (Mr. Hensarling), amendment No. 17
offered by the gentleman from Illinois (Mr. Kirk).
The Chair will reduce to 5 minutes the time for the second electronic
vote.
Amendment No. 16 Offered by Mr. Hensarling
The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on the amendment offered by the gentleman from Texas (Mr.
Hensarling) on which further proceedings were postponed and on which
the noes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 88,
noes 326, not voting 19, as follows:
[Roll No. 315]
AYES--88
Akin
Ballenger
Barrett (SC)
Bartlett (MD)
Beauprez
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Brady (TX)
Burgess
Cannon
Cantor
Carter
Chabot
Chocola
Coble
Cole
Cox
Crane
Cubin
Deal (GA)
DeMint
Diaz-Balart, M.
Duncan
Dunn
English
Feeney
Flake
Franks (AZ)
Garrett (NJ)
Gibbons
Gingrey
Goode
Green (WI)
Gutknecht
Harris
Hart
Hayworth
Hefley
Hensarling
Herger
Hoekstra
Hostettler
Isakson
Jenkins
Johnson, Sam
Jones (NC)
Kennedy (MN)
King (IA)
Kline
Manzullo
McCrery
McKeon
Miller (FL)
Miller, Gary
Moran (KS)
Musgrave
Myrick
Neugebauer
Norwood
Otter
Paul
Pence
Pitts
Putnam
Radanovich
Rohrabacher
Royce
Ryan (WI)
Ryun (KS)
Schrock
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Stearns
Sullivan
Tancredo
Terry
Thornberry
Toomey
Turner (OH)
Vitter
Wilson (SC)
NOES--326
Abercrombie
Ackerman
Aderholt
Alexander
Allen
Andrews
Baca
Bachus
Baird
Baldwin
Bass
Becerra
Bell
Berkley
Berry
Biggert
Bishop (GA)
Bishop (NY)
Blumenauer
Boehlert
Bonilla
Bono
Boozman
Boswell
Boucher
Boyd
Bradley (NH)
Brady (PA)
Brown (OH)
Brown (SC)
Brown, Corrine
Brown-Waite, Ginny
Burns
Burr
Burton (IN)
Buyer
Calvert
Camp
Capito
Capps
Capuano
Cardin
Cardoza
Carson (OK)
Case
Castle
Chandler
Clay
Clyburn
Conyers
Cooper
Costello
Cramer
Crenshaw
Crowley
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (FL)
Davis (IL)
Davis (TN)
Davis, Jo Ann
Davis, Tom
DeFazio
DeGette
Delahunt
DeLauro
DeLay
Diaz-Balart, L.
Dicks
Dingell
Doggett
Dooley (CA)
Doolittle
Doyle
Dreier
Edwards
Ehlers
Emanuel
Emerson
Engel
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Ferguson
Filner
Foley
Forbes
Ford
Fossella
Frank (MA)
Frelinghuysen
Frost
Gallegly
Gerlach
Gilchrest
Gillmor
Gonzalez
Goodlatte
Goss
Graves
Green (TX)
Greenwood
Grijalva
Gutierrez
Hall
Harman
Hayes
Herseth
Hill
Hinchey
Hinojosa
Hobson
Hoeffel
Holden
Holt
Honda
Hooley (OR)
Hoyer
Hulshof
Hunter
Hyde
Inslee
Israel
Issa
Jackson (IL)
Jackson-Lee (TX)
Jefferson
John
Johnson (CT)
Johnson (IL)
Johnson, E. B.
Kanjorski
Kaptur
Keller
Kelly
Kennedy (RI)
Kildee
Kilpatrick
Kind
[[Page H5063]]
King (NY)
Kingston
Kirk
Kleczka
Knollenberg
Kolbe
Kucinich
LaHood
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Linder
Lipinski
LoBiondo
Lofgren
Lowey
Lucas (KY)
Lucas (OK)
Lynch
Majette
Maloney
Markey
Marshall
Matheson
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McCotter
McGovern
McHugh
McInnis
McIntyre
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Mica
Michaud
Millender-McDonald
Miller (MI)
Miller (NC)
Miller, George
Moore
Moran (VA)
Murphy
Murtha
Nadler
Napolitano
Neal (MA)
Nethercutt
Ney
Northup
Nunes
Nussle
Oberstar
Obey
Olver
Ortiz
Osborne
Ose
Owens
Oxley
Pallone
Pascrell
Pastor
Payne
Pearce
Pelosi
Peterson (MN)
Peterson (PA)
Petri
Pickering
Platts
Pombo
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Quinn
Rahall
Ramstad
Rangel
Regula
Rehberg
Renzi
Reyes
Reynolds
Rodriguez
Rogers (AL)
Rogers (KY)
Rogers (MI)
Ros-Lehtinen
Ross
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Sandlin
Saxton
Schakowsky
Schiff
Scott (GA)
Scott (VA)
Serrano
Shaw
Shays
Sherman
Sherwood
Simmons
Simpson
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Souder
Spratt
Stark
Stenholm
Strickland
Stupak
Sweeney
Tanner
Tauscher
Taylor (MS)
Taylor (NC)
Thomas
Thompson (CA)
Thompson (MS)
Tiahrt
Tiberi
Tierney
Towns
Turner (TX)
Udall (CO)
Udall (NM)
Upton
Van Hollen
Velazquez
Visclosky
Walden (OR)
Walsh
Wamp
Waters
Watson
Watt
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Weller
Wexler
Whitfield
Wicker
Wilson (NM)
Wolf
Woolsey
Wu
Wynn
Young (AK)
Young (FL)
NOT VOTING--19
Baker
Barton (TX)
Bereuter
Berman
Carson (IN)
Collins
Deutsch
Gephardt
Gordon
Granger
Hastings (FL)
Hastings (WA)
Houghton
Istook
Jones (OH)
McDermott
Mollohan
Rothman
Tauzin
Announcement by the Chairman Pro Tempore
The CHAIRMAN pro tempore (Mr. Walden of Oregon) (during the vote).
Members are advised there are 2 minutes remaining in this vote.
{time} 2333
Ms. WOOLSEY, Ms. GINNY BROWN-WAITE of Florida, and Messrs. FORBES,
WEINER, and BOEHLERT changed their vote from ``aye'' to ``no.''
So the amendment in the nature of a substitute was rejected.
The result of the vote was announced as above recorded.
{time} 2330
Amendment No. 17 In the Nature of a Substitute Offered by Mr. Kirk
The CHAIRMAN pro tempore (Mr. Walden of Oregon). The pending business
is the demand for a recorded vote on the amendment in the nature of a
substitute offered by the gentleman from Illinois (Mr. Kirk) on which
further proceedings were postponed and on which the noes prevailed by
voice vote.
The Clerk will redesignate the amendment in the nature of a
substitute.
The Clerk redesignated the amendment in the nature of a substitute.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 120,
noes 296, not voting 17, as follows:
[Roll No. 316]
AYES--120
Akin
Ballenger
Barrett (SC)
Bartlett (MD)
Bass
Beauprez
Biggert
Bishop (UT)
Blackburn
Blunt
Boehlert
Bonner
Bono
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burton (IN)
Cannon
Cantor
Carter
Castle
Chabot
Chocola
Coble
Cole
Cox
Crane
Cubin
Deal (GA)
DeLay
DeMint
Diaz-Balart, M.
Duncan
Dunn
Ehlers
English
Feeney
Flake
Forbes
Fossella
Franks (AZ)
Garrett (NJ)
Gibbons
Gilchrest
Gillmor
Gingrey
Goode
Goodlatte
Green (WI)
Greenwood
Gutknecht
Harris
Hart
Hayworth
Hefley
Hensarling
Herger
Hoekstra
Hostettler
Hulshof
Hunter
Hyde
Isakson
Issa
Jenkins
Johnson (CT)
Johnson, Sam
Kennedy (MN)
King (IA)
Kirk
Kline
Linder
Manzullo
McCrery
McInnis
McKeon
Miller (FL)
Miller, Gary
Murphy
Musgrave
Myrick
Neugebauer
Norwood
Nunes
Otter
Paul
Pence
Pitts
Portman
Pryce (OH)
Putnam
Radanovich
Rehberg
Reynolds
Rogers (MI)
Rohrabacher
Royce
Ryan (WI)
Ryun (KS)
Schrock
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Smith (MI)
Stearns
Sullivan
Tancredo
Terry
Thornberry
Tiahrt
Tiberi
Toomey
Turner (OH)
Upton
Vitter
Weller
Wilson (SC)
NOES--296
Abercrombie
Ackerman
Aderholt
Alexander
Allen
Andrews
Baca
Bachus
Baird
Baker
Baldwin
Becerra
Bell
Berkley
Berry
Bilirakis
Bishop (GA)
Bishop (NY)
Blumenauer
Boehner
Bonilla
Boozman
Boswell
Boucher
Boyd
Bradley (NH)
Brady (PA)
Brown (OH)
Brown, Corrine
Burns
Burr
Buyer
Calvert
Camp
Capito
Capps
Capuano
Cardin
Cardoza
Carson (OK)
Case
Chandler
Clay
Clyburn
Conyers
Cooper
Costello
Cramer
Crenshaw
Crowley
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (FL)
Davis (IL)
Davis (TN)
Davis, Jo Ann
Davis, Tom
DeFazio
DeGette
Delahunt
DeLauro
Diaz-Balart, L.
Dicks
Dingell
Doggett
Dooley (CA)
Doolittle
Doyle
Dreier
Edwards
Emanuel
Emerson
Engel
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Ferguson
Filner
Foley
Ford
Frank (MA)
Frelinghuysen
Frost
Gallegly
Gerlach
Gonzalez
Goss
Graves
Green (TX)
Grijalva
Gutierrez
Hall
Harman
Hayes
Herseth
Hill
Hinchey
Hinojosa
Hobson
Hoeffel
Holden
Holt
Honda
Hooley (OR)
Hoyer
Inslee
Israel
Istook
Jackson (IL)
Jackson-Lee (TX)
Jefferson
John
Johnson (IL)
Johnson, E. B.
Jones (NC)
Kanjorski
Kaptur
Keller
Kelly
Kennedy (RI)
Kildee
Kilpatrick
Kind
King (NY)
Kingston
Kleczka
Knollenberg
Kolbe
Kucinich
LaHood
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Lipinski
LoBiondo
Lofgren
Lowey
Lucas (KY)
Lucas (OK)
Lynch
Majette
Maloney
Markey
Marshall
Matheson
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McCotter
McGovern
McHugh
McIntyre
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Mica
Michaud
Millender-McDonald
Miller (MI)
Miller (NC)
Miller, George
Moore
Moran (KS)
Moran (VA)
Murtha
Nadler
Napolitano
Neal (MA)
Nethercutt
Ney
Northup
Nussle
Oberstar
Obey
Olver
Ortiz
Osborne
Ose
Owens
Oxley
Pallone
Pascrell
Pastor
Payne
Pearce
Pelosi
Peterson (MN)
Peterson (PA)
Petri
Pickering
Platts
Pombo
Pomeroy
Porter
Price (NC)
Quinn
Rahall
Ramstad
Rangel
Regula
Renzi
Reyes
Rodriguez
Rogers (AL)
Rogers (KY)
Ros-Lehtinen
Ross
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Sandlin
Saxton
Schakowsky
Schiff
Scott (GA)
Scott (VA)
Serrano
Shaw
Sherman
Sherwood
Shuster
Simmons
Simpson
Skelton
Slaughter
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Souder
Spratt
Stark
Stenholm
Strickland
Stupak
Sweeney
Tanner
Tauscher
Taylor (MS)
Taylor (NC)
Thomas
Thompson (CA)
Thompson (MS)
Tierney
Towns
Turner (TX)
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walden (OR)
Walsh
Wamp
Waters
Watson
Watt
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Wexler
Whitfield
Wicker
Wilson (NM)
Wolf
Woolsey
Wu
Wynn
Young (AK)
Young (FL)
NOT VOTING--17
Barton (TX)
Bereuter
Berman
Carson (IN)
Collins
Deutsch
Gephardt
Gordon
Granger
Hastings (FL)
Hastings (WA)
Houghton
Jones (OH)
McDermott
Mollohan
Rothman
Tauzin
Announcement by the Chairman Pro Tempore
The CHAIRMAN pro tempore (during the vote). Members are advised there
are 2 minutes remaining in this vote.
{time} 2340
So the amendment in the nature of a substitute was rejected.
The result of the vote was announced as above recorded.
The CHAIRMAN pro tempore. The Chair is advised that amendment No. 19
is not to be offered.
Under the rule, the Committee rises.
[[Page H5064]]
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Shimkus) having assumed the chair, Mr. Walden of Oregon, Chairman pro
tempore of the Committee of the Whole House on the State of the Union,
reported that that Committee, having had under consideration the bill
(H.R. 4663) to amend part C of the Balanced Budget and Emergency
Deficit Control Act of 1985 to establish discretionary spending limits
and a pay-as-you-go requirement for mandatory spending, pursuant to
House Resolution 692, he reported the bill back to the House with
sundry amendments adopted by the Committee of the Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
Is a separate vote demanded on any amendment? If not, the Chair will
put them en gros.
The amendments were agreed to.
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit Offered By Mr. Stenholm
Mr. STENHOLM. Mr. Speaker, I offer a motion to recommit.
The SPEAKER pro tempore. Is the gentlemen opposed to the bill?
Mr. STENHOLM. I am, Mr. Speaker, in its current form.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Stenholm moves to recommit the bill H.R. 4663 to the
Committee on the Budget with instructions to report the same
back to the House forthwith with the following amendments:
Amend section 6 to read as follows:
SEC. 6. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.
Section 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended ``2002'' both places it
appears and inserting ``2009''.
Strike section 9 and redesignate the succeeding sections
accordingly.
{time} 2340
The SPEAKER pro tempore (Mr. Shimkus). The gentleman from Texas (Mr.
Stenholm) is recognized for 5 minutes.
Mr. STENHOLM. Mr. Speaker, my motion will make one simple change to
the base bill. It will reinstate the original pay-as-you-go rules for
all legislation which would increase the deficit. The motion would
leave in place the discretionary spending limits and other provisions
of the base bill.
The original pay-as-you-go legislation was part of the bipartisan
1990 budget agreement between President George Bush and the Democratic
Congress. Pay-as-you-go rules applying to changes in revenues in the
mandatory spending were extended in the 1993 Budget Reconciliation Act,
the 1995 budget resolution, and the bipartisan balanced budget
agreement in 1997.
The pay-as-you-go rules enacted in 1990 have been tested and they
worked. They were instrumental in going from large deficits in the
early 1980s and early 1990s to budget surpluses in the late 1990s.
The Concord Coalition, Federal Reserve Chairman Alan Greenspan, the
Committee for a Responsible Federal Budget, the AARP and a bipartisan
majority in the other body and a bipartisan majority in this body, for
more than 20 minutes, when the gentleman from California (Mr. Thompson)
offered this the first time, have all expressed support for reinstating
balanced and effective PAYGO rules that applies to all legislation that
would increase the deficit.
These rules are based on a simple concept that all families
understand, and we have heard so much of this today. If we want to
reduce our revenues or increase spending, we need to say how we would
pay for these changes.
If we are truly serious about restoring fiscal discipline, budget
enforcement rules must apply to all legislation which would increase
the deficit through increased spending or reductions in revenues.
All parts of the budget must be on the table. It is irresponsible and
politically unrealistic to propose budget rules that apply to one part
of the budget but not others.
It is irresponsible and politically unrealistic to propose budget
rules that apply to one part of the budget but not to others. Both
sides need to be willing to apply budget discipline to their own
priorities, not just the other side's priorities.
Applying pay-as-you-go rules to tax cuts do not prevent Congress from
passing more tax cuts or increasing spending. All it says is that if we
are going to reduce our revenues we need to reduce our spending by the
same amount, and if we want to increase spending, we need to make room
in the budget for the increased spending by cutting other spending or
raising revenues.
Enacting meaningful budget enforcement legislation will require
bipartisan support. This recommittal will bring bipartisan support.
I conclude by saying again, and listen carefully, applying pay-as-
you-go rules to tax cuts do not prevent Congress from passing more tax
cuts. All it says is that if we are going to reduce our revenues we
need to reduce our spending by the same amount.
If my friends on the other side of the aisle actually mean what they
have said over and over about controlling spending, if all of those
that have just offered the last two substitutes really mean what they
say about controlling spending, they should have no problem with
applying pay-as-you-go to tax cuts because it would force Congress to
actually control spending when we pass tax cuts instead of just
promising to do so in the future.
In fact, requiring Congress to offset tax cuts could be a tool to
force Congress to control spending. The problem is that we have not
matched our actions with our rhetoric. We propose cutting taxes without
cutting spending. We run up the deficits and we pass the difference on
to our children and grandchildren.
This motion to recommit, very simple, will accomplish that which we
have talked about all day.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. For what purpose does the gentleman from
Iowa (Mr. Nussle) seek recognition?
Mr. NUSSLE. Mr. Speaker, I rise in opposition to the motion.
The SPEAKER pro tempore. The gentleman from Iowa is recognized for 5
minutes in opposition.
Mr. NUSSLE. Mr. Speaker, the gentleman from Texas is correct. We have
been debating this all day, and he is exactly right, but you just do
not get it because you equate taxes with spending. You equate when the
government does not take in taxes, somehow that is spending, and the
reason you do that is because you believe that decisions should start
here in Washington rather than at the small businesses and the farms
and the kitchen tables of America. Those are the people who pay taxes.
We are not going to raise taxes. We have decided that. Seven times
this year we have had this vote, and so we want to get to that vote,
but let me just remind us of a couple of things.
Today was a good debate because any day you discuss controlling
spending is a good day. Any day you discuss that is a good day. What is
not quite good about today is that we are probably not going to pass
anything, and that is because they do not want to control spending. I
know that was tough, but before we start pointing fingers at each
other, all I was going to say is that we are all in this together.
We can blame processes, we can blame appropriators, we can blame
Democrats and we can blame Republicans. We can blame Presidents. Oh,
sure, we can blame the other body. We can blame all sorts of things for
what we do every day when we cast our votes in committee or on the
floor to have spending continue out of control, and we can devise all
sorts of very interesting processes to try and rein us in and to
convince our constituents that if all we did was to pass a new law or
pass a new process, somehow all of it would be fixed. This is about us.
This is not about one particular committee or another.
Now, I understand why the appropriators today, with all due respect,
came to the floor just a little bit paranoid about this process. Even
paranoids have enemies. I understand, but rightfully so, they are
concerned that we have spent way too much time only looking at
discretionary spending, and that is why in final analysis what this
[[Page H5065]]
bill does is it manages the mandatory spending process with a pay-as-
you-go requirement, and it manages the discretionary process by setting
caps for only 2 years at the budget that we have all voted for.
We have a budget. We should stick to that budget. If we stick to that
budget, we will control spending, and as a result already, if we stick
to that budget, we are going to protect the country, make sure that our
homeland is secure, make sure we can win the global war on terrorism,
make sure our economy can continue to grow like it has for the last 6
months, which has been the fastest in over 20 years, and continue to
create jobs.
The payoff is even better than that. If we stick to this plan, we
will already see, I predict within this next month a reduction in the
prediction for the deficit for this year alone by $100 billion. That my
friends is controlling spending, and that is a good day's work, even if
this does not quite make it to the finish line.
Mr. Speaker, I yield back the balance of our time.
{time} 2350
The SPEAKER pro tempore (Mr. Shimkus). Without objection, the
previous question is ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Recorded Vote
Mr. STENHOLM. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 8 and 9 of rule XX, this
15-minute vote on the motion to recommit will be followed by 5-minute
votes on passage of H.R. 4663 and agreeing to House Resolution 691.
The vote was taken by electronic device, and there were--ayes 196,
noes 218, not voting 19, as follows:
[Roll No. 317]
AYES--196
Abercrombie
Ackerman
Alexander
Allen
Andrews
Baca
Baird
Baldwin
Becerra
Bell
Berkley
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Boucher
Boyd
Brady (PA)
Brown (OH)
Brown, Corrine
Capps
Capuano
Cardin
Cardoza
Carson (OK)
Case
Chandler
Clay
Clyburn
Conyers
Cooper
Costello
Cramer
Crowley
Cummings
Davis (AL)
Davis (CA)
Davis (FL)
Davis (IL)
Davis (TN)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Dooley (CA)
Doyle
Edwards
Emanuel
Engel
Eshoo
Etheridge
Evans
Farr
Fattah
Filner
Ford
Frank (MA)
Frost
Gonzalez
Green (TX)
Grijalva
Gutierrez
Harman
Herseth
Hill
Hinchey
Hinojosa
Hoeffel
Holden
Holt
Honda
Hooley (OR)
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
John
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
Kind
Kleczka
Kucinich
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Lofgren
Lowey
Lucas (KY)
Lynch
Majette
Maloney
Markey
Marshall
Matheson
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McGovern
McIntyre
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Michaud
Millender-McDonald
Miller (NC)
Miller, George
Moore
Moran (VA)
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Rodriguez
Ross
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Sandlin
Schakowsky
Schiff
Scott (GA)
Scott (VA)
Serrano
Sherman
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Spratt
Stark
Stenholm
Strickland
Stupak
Tanner
Tauscher
Taylor (MS)
Thompson (CA)
Thompson (MS)
Tierney
Towns
Turner (TX)
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Waters
Watson
Watt
Waxman
Weiner
Wexler
Woolsey
Wu
Wynn
NOES--218
Aderholt
Akin
Bachus
Baker
Barrett (SC)
Bartlett (MD)
Bass
Beauprez
Biggert
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehlert
Boehner
Bonilla
Bonner
Bono
Boozman
Bradley (NH)
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burns
Burr
Burton (IN)
Buyer
Calvert
Camp
Cannon
Cantor
Capito
Carter
Castle
Chabot
Chocola
Coble
Cole
Cox
Crane
Crenshaw
Cubin
Culberson
Cunningham
Davis, Jo Ann
Davis, Tom
Deal (GA)
DeLay
DeMint
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Dreier
Duncan
Dunn
Ehlers
Emerson
English
Everett
Feeney
Ferguson
Flake
Foley
Forbes
Fossella
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gibbons
Gilchrest
Gillmor
Gingrey
Goode
Goodlatte
Goss
Graves
Green (WI)
Greenwood
Gutknecht
Hall
Harris
Hart
Hayes
Hayworth
Hefley
Hensarling
Herger
Hobson
Hoekstra
Hostettler
Hulshof
Hunter
Hyde
Isakson
Issa
Istook
Jenkins
Johnson (CT)
Johnson (IL)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kolbe
LaHood
Latham
LaTourette
Leach
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas (OK)
Manzullo
McCotter
McCrery
McHugh
McInnis
McKeon
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy
Musgrave
Myrick
Nethercutt
Neugebauer
Ney
Northup
Norwood
Nunes
Nussle
Osborne
Ose
Otter
Oxley
Paul
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Porter
Portman
Pryce (OH)
Putnam
Quinn
Radanovich
Ramstad
Regula
Rehberg
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Royce
Ryan (WI)
Ryun (KS)
Saxton
Schrock
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherwood
Shimkus
Shuster
Simmons
Simpson
Smith (NJ)
Smith (TX)
Souder
Stearns
Sullivan
Sweeney
Tancredo
Taylor (NC)
Terry
Thomas
Thornberry
Tiahrt
Tiberi
Toomey
Turner (OH)
Upton
Vitter
Walden (OR)
Walsh
Wamp
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (AK)
Young (FL)
NOT VOTING--19
Ballenger
Barton (TX)
Bereuter
Berman
Carson (IN)
Collins
Deutsch
Gephardt
Gordon
Granger
Hastings (FL)
Hastings (WA)
Houghton
Jones (OH)
McDermott
Mollohan
Rothman
Smith (MI)
Tauzin
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. Shimkus) (during the vote). Two minutes
remain in this vote.
{time} 0009
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. SPRATT. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 146,
noes 268, not voting 19, as follows:
[Roll No. 318]
AYES--146
Akin
Bachus
Baker
Barrett (SC)
Bartlett (MD)
Bass
Beauprez
Biggert
Bishop (UT)
Blackburn
Blunt
Boehlert
Boehner
Boozman
Bradley (NH)
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burns
Burr
Burton (IN)
Buyer
Camp
Cannon
Cantor
Capito
Carter
Castle
Chabot
Chocola
Cole
Cox
Crane
Cubin
Deal (GA)
DeLay
DeMint
Diaz-Balart, L.
Diaz-Balart, M.
Dreier
Duncan
Dunn
Ehlers
Feeney
Flake
Foley
Forbes
Fossella
Franks (AZ)
Gallegly
Garrett (NJ)
Gibbons
Gilchrest
Gillmor
Gingrey
Goode
Goodlatte
Graves
Green (WI)
Greenwood
Gutknecht
Harris
Hart
Hayworth
Hefley
Hensarling
Herger
Hoekstra
Hostettler
Hulshof
Isakson
Issa
Jenkins
Johnson (CT)
Johnson (IL)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
King (IA)
Kirk
Kline
Linder
Lucas (OK)
Manzullo
McCotter
McCrery
McInnis
Miller (FL)
Miller, Gary
Moran (KS)
Murphy
Musgrave
Myrick
Neugebauer
Ney
Norwood
Nunes
Nussle
Ose
Otter
Oxley
Paul
Pearce
Pence
Petri
Pickering
Pitts
Platts
Pombo
Portman
[[Page H5066]]
Pryce (OH)
Putnam
Radanovich
Ramstad
Rehberg
Reynolds
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Royce
Ryan (WI)
Ryun (KS)
Schrock
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Shuster
Stearns
Sullivan
Tancredo
Terry
Thomas
Thornberry
Tiberi
Toomey
Turner (OH)
Upton
Vitter
Weldon (PA)
Wilson (SC)
Young (AK)
NOES--268
Abercrombie
Ackerman
Aderholt
Alexander
Allen
Andrews
Baca
Baird
Baldwin
Becerra
Bell
Berkley
Berry
Bilirakis
Bishop (GA)
Bishop (NY)
Blumenauer
Bonilla
Bonner
Bono
Boswell
Boucher
Boyd
Brady (PA)
Brown (OH)
Brown, Corrine
Calvert
Capps
Capuano
Cardin
Cardoza
Carson (OK)
Case
Chandler
Clay
Clyburn
Coble
Conyers
Cooper
Costello
Cramer
Crenshaw
Crowley
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (FL)
Davis (IL)
Davis (TN)
Davis, Jo Ann
Davis, Tom
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Dooley (CA)
Doolittle
Doyle
Edwards
Emanuel
Emerson
Engel
English
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Ferguson
Filner
Ford
Frank (MA)
Frelinghuysen
Frost
Gerlach
Gonzalez
Goss
Green (TX)
Grijalva
Gutierrez
Hall
Harman
Hayes
Herseth
Hill
Hinchey
Hinojosa
Hobson
Hoeffel
Holden
Holt
Honda
Hooley (OR)
Hoyer
Hunter
Hyde
Inslee
Israel
Istook
Jackson (IL)
Jackson-Lee (TX)
Jefferson
John
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
Kind
King (NY)
Kingston
Kleczka
Knollenberg
Kolbe
Kucinich
LaHood
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Lipinski
LoBiondo
Lofgren
Lowey
Lucas (KY)
Lynch
Majette
Maloney
Markey
Marshall
Matheson
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McGovern
McHugh
McIntyre
McKeon
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Mica
Michaud
Millender-McDonald
Miller (MI)
Miller (NC)
Miller, George
Moore
Moran (VA)
Murtha
Nadler
Napolitano
Neal (MA)
Nethercutt
Northup
Oberstar
Obey
Olver
Ortiz
Osborne
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Peterson (PA)
Pomeroy
Porter
Price (NC)
Quinn
Rahall
Rangel
Regula
Renzi
Reyes
Rodriguez
Rogers (AL)
Rogers (KY)
Ross
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Sandlin
Saxton
Schakowsky
Schiff
Scott (GA)
Scott (VA)
Serrano
Shaw
Sherman
Sherwood
Simmons
Simpson
Skelton
Slaughter
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Souder
Spratt
Stark
Stenholm
Strickland
Stupak
Sweeney
Tanner
Tauscher
Taylor (MS)
Taylor (NC)
Thompson (CA)
Thompson (MS)
Tiahrt
Tierney
Towns
Turner (TX)
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walden (OR)
Walsh
Wamp
Waters
Watson
Watt
Waxman
Weiner
Weldon (FL)
Weller
Wexler
Whitfield
Wicker
Wilson (NM)
Wolf
Woolsey
Wu
Wynn
Young (FL)
NOT VOTING--19
Ballenger
Barton (TX)
Bereuter
Berman
Carson (IN)
Collins
Deutsch
Gephardt
Gordon
Granger
Hastings (FL)
Hastings (WA)
Houghton
Jones (OH)
McDermott
Mollohan
Rothman
Smith (MI)
Tauzin
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. Shimkus) (during the vote). Members are
advised there are 2 minutes left in this vote.
{time} 0016
So the bill was not passed.
The result of the vote was announced as above recorded.
____________________