[Congressional Record (Bound Edition), Volume 150 (2004), Part 10]
[House]
[Pages 14015-14092]
[From the U.S. 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in the report may be considered out of sequence and may be withdrawn by 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.
       (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--

[[Page 14016]]

       (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. 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

[[Page 14017]]

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 
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. 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. 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

[[Page 14018]]

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 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

[[Page 14019]]

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 
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.

[[Page 14020]]

  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. 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.

[[Page 14021]]

  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 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''.

[[Page 14022]]

       (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.
  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.

[[Page 14023]]

  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 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

[[Page 14024]]

$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 
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.

[[Page 14025]]

  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 
     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.


[[Page 14026]]


  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 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

[[Page 14027]]

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.
       ``(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

[[Page 14028]]

     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 14029]]

  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

[[Page 14030]]

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.
  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;

[[Page 14031]]

       ``(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
       ``(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''.

[[Page 14032]]

       (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 
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

[[Page 14033]]

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 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

[[Page 14034]]

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 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

[[Page 14035]]

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.
  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, cause 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

[[Page 14036]]

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
     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

[[Page 14037]]


     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
     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

[[Page 14038]]


     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
     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:

[[Page 14039]]



                             [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
     Sanchez, 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
     Velazquez
     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
     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.

[[Page 14040]]

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;''.

     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:

[[Page 14041]]

       ``(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:
       ``(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.

[[Page 14042]]

       (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 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

[[Page 14043]]

     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--
       (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

[[Page 14044]]

     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:
       ``(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,

[[Page 14045]]

     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'';
       (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

[[Page 14046]]

     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.
       ``(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:

[[Page 14047]]

       ``(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 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.''.

[[Page 14048]]



     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.
       ``(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

[[Page 14049]]

     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 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:

[[Page 14050]]

       ``(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--
       ``(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

[[Page 14051]]

     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 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)

[[Page 14052]]

     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).
       ``(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:

[[Page 14053]]

       ``(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:
       ``(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.

[[Page 14054]]

       ``(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 14055]]

       (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).

[[Page 14056]]



     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 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--

[[Page 14057]]

       ``(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 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

[[Page 14058]]

     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 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

[[Page 14059]]

     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
       (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.

[[Page 14060]]




                    ``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 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--22  
     ``(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

[[Page 14061]]

     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 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.

[[Page 14062]]

       ``(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.
``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

[[Page 14063]]

     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 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,

[[Page 14064]]

       ``(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 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

[[Page 14065]]

     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),''.
       (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.

[[Page 14066]]

       ``(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 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

[[Page 14067]]

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 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.

[[Page 14068]]

  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 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

[[Page 14069]]

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 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

[[Page 14070]]

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.
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

[[Page 14071]]

     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 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.''.

[[Page 14072]]

       (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.
       ``(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

[[Page 14073]]

     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).
       ``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--

[[Page 14074]]

       ``(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 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

[[Page 14075]]

     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
       ``(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.''.

[[Page 14076]]



             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.
       ``(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--

[[Page 14077]]

       (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.

     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

[[Page 14078]]

     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 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

[[Page 14079]]

     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

[[Page 14080]]

     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.

       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.

[[Page 14081]]




                        ``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) 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

[[Page 14082]]

     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 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

[[Page 14083]]

     `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 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

[[Page 14084]]

     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.--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)--

[[Page 14085]]

       (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 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

[[Page 14086]]

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.
  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

[[Page 14087]]

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 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.

[[Page 14088]]

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?
  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.

[[Page 14089]]




               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
     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

[[Page 14090]]


     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.
  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

[[Page 14091]]

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 
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

[[Page 14092]]


     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
     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.

                          ____________________