[Congressional Record (Bound Edition), Volume 151 (2005), Part 6]
[House]
[Pages 8276-8309]
[From the U.S. Government Publishing Office, www.gpo.gov]




  CONFERENCE REPORT ON H. CON. RES. 95, CONCURRENT RESOLUTION ON THE 
                      BUDGET FOR FISCAL YEAR 2006

  Mr. NUSSLE submitted the following conference report and statement on 
the concurrent resolution (H. Con. Res. 95) establishing the 
congressional budget for the United States Government for fiscal year 
2006, revising appropriate budgetary levels for fiscal year 2005, and 
setting forth appropriate budgetary levels for fiscal years 2007 
through 2010:

                  CONFERENCE REPORT (H. Rept. 109-62)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the concurrent 
     resolution (H. Con. Res. 95), establishing the congressional 
     budget for the United States Government for fiscal year 2006, 
     revising appropriate budgetary levels for fiscal year 2005, 
     and setting forth appropriate budgetary levels for fiscal 
     years 2007 through 2010, having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 
                   YEAR 2006.

       (a) Declaration.--The Congress declares that the concurrent 
     resolution on the budget for fiscal year 2006 is hereby 
     established and that the appropriate budgetary levels for 
     fiscal years 2005 and 2007 through 2010 are set forth.
       (b) Table of Contents.--The table of contents for this 
     concurrent resolution is as follows:
Sec. 1. Concurrent resolution on the budget for fiscal year 2006.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Social security.
Sec. 103. Major functional categories.

            TITLE II--RECONCILIATION AND REPORT SUBMISSIONS

Sec. 201. Reconciliation in the House of Representatives.
Sec. 202. Reconciliation in the Senate.

                        TITLE III--RESERVE FUNDS

Sec. 301. Adjustment for surface transportation.
Sec. 302. Reserve fund for the Family Opportunity Act.
Sec. 303. Reserve fund for the Federal Pell Grant Program.
Sec. 304. Reserve fund for the uninsured.
Sec. 305. Reserve fund for the disposal of underutilized Federal real 
              property.
Sec. 306. Reserve fund for health information technology and pay-for-
              performance.
Sec. 307. Reserve fund for Asbestos Injury Trust Fund.
Sec. 308. Reserve fund for energy legislation.
Sec. 309. Reserve fund for the safe importation of prescription drugs.
Sec. 310. Reserve fund for the restoration of SCHIP funds.

                      TITLE IV--BUDGET ENFORCEMENT

Sec. 401. Restrictions on advance appropriations.
Sec. 402. Emergency legislation.
Sec. 403. Extension of senate enforcement.
Sec. 404. Discretionary spending limits in the Senate.
Sec. 405. Application and effect of changes in allocations and 
              aggregates.
Sec. 406. Adjustments to reflect changes in concepts and definitions.
Sec. 407. Limitation on long-term spending proposals.
Sec. 408. Compliance with section 13301 of the Budget Enforcement Act 
              of 1990.
Sec. 409. Exercise of rulemaking powers.
Sec. 410. Treatment of allocations in the House.
Sec. 411. Special procedures to achieve savings in mandatory spending 
              through FY2014.

                      TITLE V--SENSE OF THE SENATE

Sec. 501. Sense of the Senate regarding unauthorized appropriations.
Sec. 502. Sense of the Senate regarding a commission to review the 
              performance of programs.
Sec. 503. Sense of the Senate regarding TRICARE.
Sec. 504. Sense of the Senate regarding tribal colleges and 
              universities.
Sec. 505. Sense of the Senate regarding social security restructuring.
Sec. 506. Sense of the Senate regarding funding for subsonic and 
              hypersonic aeronautics research by the National 
              Aeronautics and Space Administration.
Sec. 507. Sense of the Senate regarding the acquisition of the next 
              generation destroyer (DDX).
                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for each of 
     fiscal years 2005 through 2010:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution:
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2005: $1,483,658,000,000.
       Fiscal year 2006: $1,589,892,000,000.
       Fiscal year 2007: $1,693,246,000,000.
       Fiscal year 2008: $1,824,274,000,000.
       Fiscal year 2009: $1,928,678,000,000.
       Fiscal year 2010: $2,043,916,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be reduced are as follows:
       Fiscal year 2005: $366,000,000.
       Fiscal year 2006: $17,758,000,000.
       Fiscal year 2007: $26,006,000,000.
       Fiscal year 2008: $11,935,000,000.
       Fiscal year 2009: $27,553,000,000.
       Fiscal year 2010: $22,466,000,000.
       (2) New budget authority.--For purposes of the enforcement 
     of this resolution, the appropriate levels of total new 
     budget authority are as follows:
       Fiscal year 2005: $2,078,456,000,000.
       Fiscal year 2006: $2,144,384,000,000.
       Fiscal year 2007: $2,211,308,000,000.
       Fiscal year 2008: $2,324,327,000,000.
       Fiscal year 2009: $2,428,613,000,000.
       Fiscal year 2010: $2,524,958,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2005: $2,056,006,000,000.
       Fiscal year 2006: $2,161,420,000,000.
       Fiscal year 2007: $2,215,361,000,000.
       Fiscal year 2008: $2,305,908,000,000.
       Fiscal year 2009: $2,411,288,000,000.
       Fiscal year 2010: $2,514,745,000,000.
       (4) Deficits (on-budget).--For purposes of the enforcement 
     of this resolution, the amounts of the deficits (on-budget) 
     are as follows:
       Fiscal year 2005: $572,348,000,000.
       Fiscal year 2006: $571,528,000,000.
       Fiscal year 2007: $522,115,000,000.
       Fiscal year 2008: $481,634,000,000.
       Fiscal year 2009: $482,610,000,000.
       Fiscal year 2010: $470,829,000,000.
       (5) Debt subject to limit.--Pursuant to section 301(a)(5) 
     of the Congressional Budget Act of 1974, the appropriate 
     levels of the public debt are as follows:
       Fiscal year 2005: $7,962,000,000,000.
       Fiscal year 2006: $8,645,000,000,000.
       Fiscal year 2007: $9,284,000,000,000.
       Fiscal year 2008: $9,890,000,000,000.
       Fiscal year 2009: $10,500,000,000,000.
       Fiscal year 2010: $11,105,000,000,000.
       (6) Debt held by the public.--The appropriate levels of 
     debt held by the public are as follows:
       Fiscal year 2005: $4,689,000,000,000.
       Fiscal year 2006: $5,082,000,000,000.
       Fiscal year 2007: $5,409,000,000,000.
       Fiscal year 2008: $5,677,000,000,000.
       Fiscal year 2009: $5,927,000,000,000.
       Fiscal year 2010: $6,150,000,000,000.

     SEC. 102. SOCIAL SECURITY.

       (a) Social Security Revenues.--For purposes of Senate 
     enforcement under sections 302 and 311 of the Congressional 
     Budget Act of 1974, the amounts of revenues of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund are as follows:
       Fiscal year 2005: $573,475,000,000.
       Fiscal year 2006: $604,777,000,000.
       Fiscal year 2007: $637,792,000,000.
       Fiscal year 2008: $671,688,000,000.
       Fiscal year 2009: $705,849,000,000.
       Fiscal year 2010: $740,343,000,000.
       (b) Social Security Outlays.--For purposes of Senate 
     enforcement under sections 302 and 311 of the Congressional 
     Budget Act of 1974, the amounts of outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund are as follows:
       Fiscal year 2005: $398,088,000,000.
       Fiscal year 2006: $415,993,000,000.
       Fiscal year 2007: $429,254,000,000.
       Fiscal year 2008: $443,235,000,000.
       Fiscal year 2009: $460,443,000,000.
       Fiscal year 2010: $479,412,000,000.
       (c) Social Security Administrative Expenses.--In the 
     Senate, the amounts of new budget authority and budget 
     outlays of the Federal Old-Age and Survivors Insurance Trust 
     Fund and the Federal Disability Insurance Trust Fund for 
     administrative expenses are as follows:
       Fiscal year 2005:
       (A) New budget authority, $4,426,000,000.
       (B) Outlays, $4,405,000,000.
       Fiscal year 2006:
       (A) New budget authority, $4,576,000,000.
       (B) Outlays, $4,587,000,000.
       Fiscal year 2007:
       (A) New budget authority, $4,710,000,000.
       (B) Outlays, $4,785,000,000.
       Fiscal year 2008:
       (A) New budget authority, $4,853,000,000.
       (B) Outlays, $4,849,000,000.
       Fiscal year 2009:
       (A) New budget authority, $5,001,000,000.
       (B) Outlays, $4,974,000,000.
       Fiscal year 2010:

[[Page 8277]]

       (A) New budget authority, $5,152,000,000.
       (B) Outlays, $5,124,000,000.

     SEC. 103. MAJOR FUNCTIONAL CATEGORIES.

       The Congress determines and declares that the appropriate 
     levels of new budget authority and outlays for fiscal years 
     2005 through 2010 for each major functional category are:
       (1) National Defense (050):
       Fiscal year 2005:
       (A) New budget authority, $423,446,000,000.
       (B) Outlays, $465,709,000,000.
       Fiscal year 2006:
       (A) New budget authority, $441,562,000,000.
       (B) Outlays, $447,020,000,000.
       Fiscal year 2007:
       (A) New budget authority, $465,260,000,000.
       (B) Outlays, $448,508,000,000.
       Fiscal year 2008:
       (A) New budget authority, $483,730,000,000.
       (B) Outlays, $467,840,000,000.
       Fiscal year 2009:
       (A) New budget authority, $503,763,000,000.
       (B) Outlays, $488,307,000,000.
       Fiscal year 2010:
       (A) New budget authority, $513,904,000,000.
       (B) Outlays, $505,531,000,000.
       (2) International Affairs (150):
       Fiscal year 2005:
       (A) New budget authority, $28,413,000,000.
       (B) Outlays, $31,620,000,000.
       Fiscal year 2006:
       (A) New budget authority, $30,913,000,000.
       (B) Outlays, $32,692,000,000.
       Fiscal year 2007:
       (A) New budget authority, $34,338,000,000.
       (B) Outlays, $31,804,000,000.
       Fiscal year 2008:
       (A) New budget authority, $34,700,000,000.
       (B) Outlays, $31,322,000,000.
       Fiscal year 2009:
       (A) New budget authority, $34,739,000,000.
       (B) Outlays, $31,313,000,000.
       Fiscal year 2010:
       (A) New budget authority, $34,430,000,000.
       (B) Outlays, $31,033,000,000.
       (3) General Science, Space, and Technology (250):
       Fiscal year 2005:
       (A) New budget authority, $24,413,000,000.
       (B) Outlays, $23,594,000,000.
       Fiscal year 2006:
       (A) New budget authority, $24,735,000,000.
       (B) Outlays, $23,894,000,000.
       Fiscal year 2007:
       (A) New budget authority, $25,171,000,000.
       (B) Outlays, $24,610,000,000.
       Fiscal year 2008:
       (A) New budget authority, $25,545,000,000.
       (B) Outlays, $24,922,000,000.
       Fiscal year 2009:
       (A) New budget authority, $25,851,000,000.
       (B) Outlays, $25,242,000,000.
       Fiscal year 2010:
       (A) New budget authority, $26,162,000,000.
       (B) Outlays, $25,565,000,000.
       (4) Energy (270):
       Fiscal year 2005:
       (A) New budget authority, $2,564,000,000.
       (B) Outlays, $794,000,000.
       Fiscal year 2006:
       (A) New budget authority, $3,247,000,000.
       (B) Outlays, $2,127,000,000.
       Fiscal year 2007:
       (A) New budget authority, $2,837,000,000.
       (B) Outlays, $1,687,000,000.
       Fiscal year 2008:
       (A) New budget authority, $2,920,000,000.
       (B) Outlays, $1,026,000,000.
       Fiscal year 2009:
       (A) New budget authority, $2,531,000,000.
       (B) Outlays, $1,127,000,000.
       Fiscal year 2010:
       (A) New budget authority, $2,229,000,000.
       (B) Outlays, $1,018,000,000.
       (5) Natural Resources and Environment (300):
       Fiscal year 2005:
       (A) New budget authority, $32,504,000,000.
       (B) Outlays, $31,163,000,000.
       Fiscal year 2006:
       (A) New budget authority, $30,021,000,000.
       (B) Outlays, $32,016,000,000.
       Fiscal year 2007:
       (A) New budget authority, $30,389,000,000.
       (B) Outlays, $31,622,000,000.
       Fiscal year 2008:
       (A) New budget authority, $30,458,000,000.
       (B) Outlays, $31,938,000,000.
       Fiscal year 2009:
       (A) New budget authority, $31,212,000,000.
       (B) Outlays, $32,182,000,000.
       Fiscal year 2010:
       (A) New budget authority, $30,754,000,000.
       (B) Outlays, $31,763,000,000.
       (6) Agriculture (350):
       Fiscal year 2005:
       (A) New budget authority, $30,151,000,000.
       (B) Outlays, $28,550,000,000.
       Fiscal year 2006:
       (A) New budget authority, $29,420,000,000.
       (B) Outlays, $28,476,000,000.
       Fiscal year 2007:
       (A) New budget authority, $27,130,000,000.
       (B) Outlays, $25,948,000,000.
       Fiscal year 2008:
       (A) New budget authority, $25,274,000,000.
       (B) Outlays, $24,225,000,000.
       Fiscal year 2009:
       (A) New budget authority, $25,631,000,000.
       (B) Outlays, $24,738,000,000.
       Fiscal year 2010:
       (A) New budget authority, $25,357,000,000.
       (B) Outlays, $24,627,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 2005:
       (A) New budget authority, $16,804,000,000.
       (B) Outlays, $11,302,000,000.
       Fiscal year 2006:
       (A) New budget authority, $10,772,000,000.
       (B) Outlays, $5,562,000,000.
       Fiscal year 2007:
       (A) New budget authority, $10,074,000,000.
       (B) Outlays, $4,929,000,000.
       Fiscal year 2008:
       (A) New budget authority, $10,040,000,000.
       (B) Outlays, $4,250,000,000.
       Fiscal year 2009:
       (A) New budget authority, $10,667,000,000.
       (B) Outlays, $3,768,000,000.
       Fiscal year 2010:
       (A) New budget authority, $14,565,000,000.
       (B) Outlays, $6,393,000,000.
       (8) Transportation (400):
       Fiscal year 2005:
       (A) New budget authority, $75,833,000,000.
       (B) Outlays, $67,639,000,000.
       Fiscal year 2006:
       (A) New budget authority, $73,034,000,000.
       (B) Outlays, $70,137,000,000.
       Fiscal year 2007:
       (A) New budget authority, $74,515,000,000.
       (B) Outlays, $72,092,000,000.
       Fiscal year 2008:
       (A) New budget authority, $76,482,000,000.
       (B) Outlays, $73,893,000,000.
       Fiscal year 2009:
       (A) New budget authority, $66,268,000,000.
       (B) Outlays, $75,235,000,000.
       Fiscal year 2010:
       (A) New budget authority, $67,611,000,000.
       (B) Outlays, $77,107,000,000.
       (9) Community and Regional Development (450):
       Fiscal year 2005:
       (A) New budget authority, $23,007,000,000.
       (B) Outlays, $20,756,000,000.
       Fiscal year 2006:
       (A) New budget authority, $14,493,000,000.
       (B) Outlays, $18,323,000,000.
       Fiscal year 2007:
       (A) New budget authority, $14,510,000,000.
       (B) Outlays, $17,180,000,000.
       Fiscal year 2008:
       (A) New budget authority, $14,597,000,000.
       (B) Outlays, $15,779,000,000.
       Fiscal year 2009:
       (A) New budget authority, $14,735,000,000.
       (B) Outlays, $14,706,000,000.
       Fiscal year 2010:
       (A) New budget authority, $14,755,000,000.
       (B) Outlays, $14,402,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 2005:
       (A) New budget authority, $94,026,000,000.
       (B) Outlays, $92,805,000,000.
       Fiscal year 2006:
       (A) New budget authority, $97,364,000,000.
       (B) Outlays, $91,463,000,000.
       Fiscal year 2007:
       (A) New budget authority, $90,395,000,000.
       (B) Outlays, $91,045,000,000.
       Fiscal year 2008:
       (A) New budget authority, $90,450,000,000.
       (B) Outlays, $89,335,000,000.
       Fiscal year 2009:
       (A) New budget authority, $90,665,000,000.
       (B) Outlays, $88,826,000,000.
       Fiscal year 2010:
       (A) New budget authority, $90,124,000,000.
       (B) Outlays, $88,646,000,000.
       (11) Health (550):
       Fiscal year 2005:
       (A) New budget authority, $257,498,000,000.
       (B) Outlays, $252,798,000,000.
       Fiscal year 2006:
       (A) New budget authority, $262,269,000,000.
       (B) Outlays, $262,628,000,000.
       Fiscal year 2007:
       (A) New budget authority, $275,200,000,000.
       (B) Outlays, $274,781,000,000.
       Fiscal year 2008:
       (A) New budget authority, $294,954,000,000.
       (B) Outlays, $293,755,000,000.
       Fiscal year 2009:
       (A) New budget authority, $317,026,000,000.
       (B) Outlays, $313,539,000,000.
       Fiscal year 2010:
       (A) New budget authority, $336,407,000,000.
       (B) Outlays, $335,458,000,000.
       (12) Medicare (570):
       Fiscal year 2005:
       (A) New budget authority, $292,587,000,000.
       (B) Outlays, $293,587,000,000.
       Fiscal year 2006:
       (A) New budget authority, $331,181,000,000.
       (B) Outlays, $330,944,000,000.
       Fiscal year 2007:
       (A) New budget authority, $371,875,000,000.
       (B) Outlays, $372,167,000,000.
       Fiscal year 2008:
       (A) New budget authority, $395,312,000,000.
       (B) Outlays, $395,364,000,000.
       Fiscal year 2009:
       (A) New budget authority, $420,234,000,000.
       (B) Outlays, $419,828,000,000.
       Fiscal year 2010:
       (A) New budget authority, $448,111,000,000.
       (B) Outlays, $448,442,000,000.
       (13) Income Security (600):
       Fiscal year 2005:
       (A) New budget authority, $339,658,000,000.
       (B) Outlays, $347,855,000,000.
       Fiscal year 2006:
       (A) New budget authority, $347,606,000,000.
       (B) Outlays, $354,415,000,000.
       Fiscal year 2007:
       (A) New budget authority, $352,843,000,000.
       (B) Outlays, $359,969,000,000.
       Fiscal year 2008:
       (A) New budget authority, $365,782,000,000.
       (B) Outlays, $371,374,000,000.
       Fiscal year 2009:

[[Page 8278]]

       (A) New budget authority, $374,984,000,000.
       (B) Outlays, $379,241,000,000.
       Fiscal year 2010:
       (A) New budget authority, $384,088,000,000.
       (B) Outlays, $387,610,000,000.
       (14) Social Security (650):
       Fiscal year 2005:
       (A) New budget authority, $15,849,000,000.
       (B) Outlays, $15,849,000,000.
       Fiscal year 2006:
       (A) New budget authority, $15,991,000,000.
       (B) Outlays, $15,991,000,000.
       Fiscal year 2007:
       (A) New budget authority, $17,804,000,000.
       (B) Outlays, $17,804,000,000.
       Fiscal year 2008:
       (A) New budget authority, $19,868,000,000.
       (B) Outlays, $19,868,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,843,000,000.
       (B) Outlays, $21,843,000,000.
       Fiscal year 2010:
       (A) New budget authority, $24,129,000,000.
       (B) Outlays, $24,129,000,000.
       (15) Veterans Benefits and Services (700):
       Fiscal year 2005:
       (A) New budget authority, $69,448,000,000.
       (B) Outlays, $68,873,000,000.
       Fiscal year 2006:
       (A) New budget authority, $68,994,000,000.
       (B) Outlays, $68,365,000,000.
       Fiscal year 2007:
       (A) New budget authority, $66,434,000,000.
       (B) Outlays, $66,168,000,000.
       Fiscal year 2008:
       (A) New budget authority, $69,561,000,000.
       (B) Outlays, $69,387,000,000.
       Fiscal year 2009:
       (A) New budget authority, $70,074,000,000.
       (B) Outlays, $69,791,000,000.
       Fiscal year 2010:
       (A) New budget authority, $70,172,000,000.
       (B) Outlays, $69,900,000,000.
       (16) Administration of Justice (750):
       Fiscal year 2005:
       (A) New budget authority, $39,731,000,000.
       (B) Outlays, $39,440,000,000.
       Fiscal year 2006:
       (A) New budget authority, $40,984,000,000.
       (B) Outlays, $42,382,000,000.
       Fiscal year 2007:
       (A) New budget authority, $41,531,000,000.
       (B) Outlays, $42,593,000,000.
       Fiscal year 2008:
       (A) New budget authority, $42,172,000,000.
       (B) Outlays, $42,791,000,000.
       Fiscal year 2009:
       (A) New budget authority, $42,743,000,000.
       (B) Outlays, $42,920,000,000.
       Fiscal year 2010:
       (A) New budget authority, $43,001,000,000.
       (B) Outlays, $42,944,000,000.
       (17) General Government (800):
       Fiscal year 2005:
       (A) New budget authority, $16,765,000,000.
       (B) Outlays, $17,673,000,000.
       Fiscal year 2006:
       (A) New budget authority, $17,909,000,000.
       (B) Outlays, $18,398,000,000.
       Fiscal year 2007:
       (A) New budget authority, $17,829,000,000.
       (B) Outlays, $17,758,000,000.
       Fiscal year 2008:
       (A) New budget authority, $17,285,000,000.
       (B) Outlays, $17,289,000,000.
       Fiscal year 2009:
       (A) New budget authority, $17,140,000,000.
       (B) Outlays, $16,956,000,000.
       Fiscal year 2010:
       (A) New budget authority, $16,733,000,000.
       (B) Outlays, $16,580,000,000.
       (18) Net Interest (900):
       Fiscal year 2005:
       (A) New budget authority, $267,982,000,000.
       (B) Outlays, $267,982,000,000.
       Fiscal year 2006:
       (A) New budget authority, $310,774,000,000.
       (B) Outlays, $310,774,000,000.
       Fiscal year 2007:
       (A) New budget authority, $360,512,000,000.
       (B) Outlays, $360,512,000,000.
       Fiscal year 2008:
       (A) New budget authority, $398,347,000,000.
       (B) Outlays, $398,347,000,000.
       Fiscal year 2009:
       (A) New budget authority, $427,735,000,000.
       (B) Outlays, $427,735,000,000.
       Fiscal year 2010:
       (A) New budget authority, $455,167,000,000.
       (B) Outlays, $455,167,000,000.
       (19) Allowances (920):
       Fiscal year 2005:
       (A) New budget authority, $81,881,000,000.
       (B) Outlays, $32,121,000,000.
       Fiscal year 2006:
       (A) New budget authority, $48,477,000,000.
       (B) Outlays, $60,905,000,000.
       Fiscal year 2007:
       (A) New budget authority, -$4,076,000,000
       (B) Outlays, $18,572,000,000.
       Fiscal year 2008:
       (A) New budget authority, -$7,670,000,000.
       (B) Outlays, -$505,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$8,352,000,000.
       (B) Outlays, -$5,758,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$9,294,000,000.
       (B) Outlays, -$8,748,000,000.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 2005:
       (A) New budget authority, -$54,104,000,000.
       (B) Outlays, -$54,104,000,000.
       Fiscal year 2006:
       (A) New budget authority, -$55,362,000,000.
       (B) Outlays, -$55,362,000,000.
       Fiscal year 2007:
       (A) New budget authority, -$63,263,000,000.
       (B) Outlays, -$64,388,000,000.
       Fiscal year 2008:
       (A) New budget authority, -$65,480,000,000.
       (B) Outlays, -$66,292,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$60,876,000,000.
       (B) Outlays, -$60,251,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$63,447,000,000.
       (B) Outlays, -$62,822,000,000.
            TITLE II--RECONCILIATION AND REPORT SUBMISSIONS

     SEC. 201. RECONCILIATION IN THE HOUSE OF REPRESENTATIVES.

       (a) Submissions to Slow the Growth in Mandatory Spending.--
     (1) Not later than September 16, 2005, the House committees 
     named in paragraph (2) shall submit their recommendations to 
     the House Committee on the Budget. After receiving those 
     recommendations, the House Committee on the Budget shall 
     report to the House a reconciliation bill carrying out all 
     such recommendations without any substantive revision.
       (2) Instructions.--
       (A) Committee on agriculture.--The House Committee on 
     Agriculture shall report changes in laws within its 
     jurisdiction sufficient to reduce the level of direct 
     spending for that committee by $173,000,000 in outlays for 
     fiscal year 2006 and $3,000,000,000 in outlays for the period 
     of fiscal years 2006 through 2010.
       (B) Committee on education and the workforce.--The House 
     Committee on Education and the Workforce shall report changes 
     in laws within its jurisdiction sufficient to reduce the 
     level of direct spending for that committee by $992,000,000 
     in outlays for fiscal years 2005 and 2006 and $12,651,000,000 
     in outlays for the period of fiscal years 2005 through 2010.
       (C) Committee on energy and commerce.--The House Committee 
     on Energy and Commerce shall report changes in laws within 
     its jurisdiction sufficient to reduce the level of direct 
     spending for that committee by $2,000,000 in outlays for 
     fiscal year 2006 and $14,734,000,000 in outlays for the 
     period of fiscal years 2006 through 2010.
       (D) Committee on financial services.--The House Committee 
     on Financial Services shall report changes in laws within its 
     jurisdiction sufficient to reduce the level of direct 
     spending for that committee by $30,000,000 in outlays for 
     fiscal year 2006 and $470,000,000 in outlays for the period 
     of fiscal years 2006 through 2010.
       (E) Committee on the judiciary.--The House Committee on the 
     Judiciary shall report changes in laws within its 
     jurisdiction sufficient to reduce the level of direct 
     spending for that committee by $60,000,000 in outlays for 
     fiscal year 2006 and $300,000,000 in outlays for the period 
     of fiscal years 2006 through 2010.
       (F) Committee on resources.--The House Committee on 
     Resources shall report changes in laws within its 
     jurisdiction sufficient to reduce the level of direct 
     spending for that committee by $2,400,000,000 in outlays for 
     the period of fiscal years 2006 through 2010.
       (G) Committee on transportation and infrastructure.--The 
     House Committee on Transportation and Infrastructure shall 
     report changes in laws within its jurisdiction sufficient to 
     reduce the level of direct spending for that committee by 
     $12,000,000 in outlays for fiscal year 2006 and $103,000,000 
     in outlays for the period of fiscal years 2006 through 2010.
       (H) Committee on ways and means.--The House Committee on 
     Ways and Means shall report changes in laws within its 
     jurisdiction sufficient to reduce the deficit by $250,000,000 
     for fiscal year 2006 and $1,000,000,000 for the period of 
     fiscal years 2006 through 2010.
       (b) Submission Providing for Changes in Revenue.--The House 
     Committee on Ways and Means shall report to the House a 
     reconciliation bill not later than September 23, 2005, that 
     consists of changes in laws within its jurisdiction 
     sufficient to reduce revenues by not more than 
     $11,000,000,000 for fiscal year 2006 and by not more than 
     $70,000,000,000 for the period of fiscal years 2006 through 
     2010.
       (c) Increase in Statutory Debt Limit.--The Committee on 
     Ways and Means shall report to the House a reconciliation 
     bill not later than September 30, 2005, that consists solely 
     of changes in laws within its jurisdiction to increase the 
     statutory debt limit by $781,000,000,000.
       (d)(1) Upon the submission to the Committee on the Budget 
     of the House of a recommendation that has complied with its 
     reconciliation instructions solely by virtue of section 
     310(b) of the Congressional Budget Act of 1974, the chairman 
     of that committee may file with the House appropriately 
     revised allocations under section 302(a) of such Act and 
     revised functional levels and aggregates.
       (2) Upon the submission to the House of a conference report 
     recommending a reconciliation bill or resolution in which a 
     committee has complied with its reconciliation instructions 
     solely by virtue of this section, the chairman of the 
     Committee on the Budget of the House may file with the House 
     appropriately revised allocations under section 302(a) of 
     such Act and revised functional levels and aggregates.
       (3) Allocations and aggregates revised pursuant to this 
     subsection shall be considered to be allocations and 
     aggregates established by the concurrent resolution on the 
     budget pursuant to section 301 of such Act.

     SEC. 202. RECONCILIATION IN THE SENATE.

       (a) Spending Reconciliation Instructions.--In the Senate, 
     by September 16, 2005,

[[Page 8279]]

     the committees named in this section shall submit their 
     recommendations to the Committee on the Budget. After 
     receiving those recommendations, the Committee on the Budget 
     shall report to the Senate a reconciliation bill carrying out 
     all such recommendations without any substantive revision.
       (1) Committee on agriculture, nutrition, and forestry.--The 
     Senate Committee on Agriculture, Nutrition, and Forestry 
     shall report changes in laws within its jurisdiction 
     sufficient to reduce outlays by $173,000,000 in fiscal year 
     2006, and $3,000,000,000 for the period of fiscal years 2006 
     through 2010.
       (2) Committee on banking, housing, and urban affairs.--The 
     Senate Committee on Banking, Housing, and Urban Affairs shall 
     report changes in laws within its jurisdiction sufficient to 
     reduce outlays by $30,000,000 in fiscal year 2006, and 
     $470,000,000 for the period of fiscal years 2006 through 
     2010.
       (3) Committee on commerce, science, and transportation.--
     The Senate Committee on Commerce, Science, and Transportation 
     shall report changes in laws within its jurisdiction 
     sufficient to reduce outlays by $10,000,000 in fiscal year 
     2006, and $4,810,000,000 for the period of fiscal years 2006 
     through 2010.
       (4) Committee on energy and natural resources.--The Senate 
     Committee on Energy and Natural Resources shall report 
     changes in laws within its jurisdiction sufficient to reduce 
     outlays by $2,400,000,000 for the period of fiscal years 2006 
     through 2010.
       (5) Committee on environment and public works.--The Senate 
     Committee on Environment and Public Works shall report 
     changes in laws within its jurisdiction sufficient to reduce 
     outlays by $4,000,000 in fiscal year 2006, and $27,000,000 
     for the period of fiscal years 2006 through 2010.
       (6) Committee on finance.--The Senate Committee on Finance 
     shall report changes in laws within its jurisdiction 
     sufficient to reduce outlays by $10,000,000,000 for the 
     period of fiscal years 2006 through 2010.
       (7) Committee on health, education, labor, and pensions.--
     The Senate Committee on Health, Education, Labor, and 
     Pensions shall report changes in laws within its jurisdiction 
     sufficient to reduce outlays by $1,242,000,000 in fiscal 
     years 2005 and 2006, and $13,651,000,000 for the period of 
     fiscal years 2005 through 2010.
       (8) Committee on the Judiciary.--The Senate Committee on 
     the Judiciary shall report changes in laws within its 
     jurisdiction sufficient to reduce outlays by $60,000,000 in 
     fiscal year 2006, and $300,000,000 for the period of fiscal 
     years 2006 through 2010.
       (b) Revenue Reconciliation Instructions.--The Committee on 
     Finance shall report to the Senate a reconciliation bill not 
     later than September 23, 2005 that consists of changes in 
     laws within its jurisdiction sufficient to reduce the total 
     level of revenues by not more than: $11,000,000,000 for 
     fiscal year 2006, and $70,000,000,000 for the period of 
     fiscal years 2006 through 2010.
       (c) Increase in Statutory Debt Limit.--The Committee on 
     Finance shall report to the Senate a reconciliation bill not 
     later than September 30, 2005, that consists solely of 
     changes in laws within its jurisdiction to increase the 
     statutory debt limit by $781,000,000,000.
                        TITLE III--RESERVE FUNDS

     SEC. 301. ADJUSTMENT FOR SURFACE TRANSPORTATION.

       (a) In General.--If the Committee on Transportation and 
     Infrastructure of the House or the Committee on Environment 
     and Public Works, the Committee on Banking, Housing, and 
     Urban Affairs, or the Committee on Commerce, Science, and 
     Transportation of the Senate reports a bill or joint 
     resolution, or an amendment is offered thereto or a 
     conference report is submitted thereon, that provides new 
     budget authority for the budget accounts or portions thereof, 
     for programs, projects, and activities for highways, highway 
     safety, and transit in excess of--
       (1) for fiscal year 2005, $46,094,000,000; or
       (2) for fiscal year 2006, $47,008,000,000; or
       (3) for fiscal years 2005 through 2009, $230,769,000,000;

     the appropriate chairman of the Committee on the Budget may 
     make the appropriate adjustments in allocations and 
     aggregates and increase the allocation of new budget 
     authority to such committees in amounts equal to the program 
     increases proposed by the committee or committees of 
     jurisdiction for fiscal years 2005 and 2006 and for the 
     period of fiscal years 2005 through 2009. Adjustments shall 
     be made only to the extent such excess is offset by a 
     reduction in mandatory outlays from the highway trust fund or 
     an increase in receipts that are appropriated to such fund 
     for the applicable fiscal year caused by such legislation. In 
     the Senate, any increase in receipts shall be reported by the 
     Committee on Finance.
       (b) Adjustment for Outlays.--In the House and the Senate, 
     for fiscal year 2006, and, as necessary, in subsequent fiscal 
     years, if a bill or joint resolution is reported, or if an 
     amendment is offered thereto or a conference report is 
     submitted thereon, that changes obligation limitations such 
     that the total limitations are in excess of $44,193,000,000 
     for fiscal year 2006, for programs, projects, and activities 
     for highways, highway safety, and transit, and if legislation 
     has been enacted that satisfies the conditions set forth in 
     subsection (a) for such fiscal year, the appropriate chairman 
     of the Committee on the Budget may increase the allocation of 
     outlays and appropriate aggregates for such fiscal year, and, 
     as necessary, in subsequent fiscal years, for the committees 
     reporting such measures, by the amount of outlays that 
     corresponds to such excess obligation limitations, but not to 
     exceed the amount of such excess that was offset in 2006 
     pursuant to subsection (a). After the adjustment has been 
     made, the Senate Committee on Appropriations shall report new 
     section 302(b) allocations consistent with this section.

     SEC. 302. RESERVE FUND FOR THE FAMILY OPPORTUNITY ACT.

       If the Committee on Energy and Commerce of the House or the 
     Committee on Finance of the Senate reports a bill or joint 
     resolution or an amendment is offered thereto or a conference 
     report is submitted thereon, that provides families of 
     disabled children with the opportunity to purchase coverage 
     under the medicaid coverage for such children (the Family 
     Opportunity Act), and provided that, in the Senate, the 
     committee is within its allocation as provided under section 
     302(a) of the Congressional Budget Act of 1974, the 
     appropriate chairman of the Committee on the Budget may make 
     the appropriate adjustments in allocations and aggregates to 
     the extent that such legislation would not increase the 
     deficit for fiscal year 2006 and for the period of fiscal 
     years 2006 through 2010.

     SEC. 303. RESERVE FUND FOR THE FEDERAL PELL GRANT PROGRAM.

       If the appropriate committee of the House or Senate reports 
     a bill or joint resolution, or an amendment is offered 
     thereto or a conference report is submitted thereon, that 
     eliminates the accumulated shortfall of budget authority 
     resulting from insufficient appropriations of discretionary 
     new budget authority previously enacted for the Federal Pell 
     Grant Program for awards made through the award year 2005-
     2006, provided that, in the Senate the committee is within 
     its allocation as provided under section 302(a) of the 
     Congressional Budget Act of 1974, or in the House the measure 
     would not increase the deficit, the appropriate chairman of 
     the Committee on the Budget may make the appropriate 
     adjustments in allocations and aggregates by the amount 
     provided by that measure for that purpose, but not to exceed 
     $4,300,000,000 in new budget authority for the fiscal year 
     2006.

     SEC. 304. RESERVE FUND FOR THE UNINSURED.

       If the Committee on Finance or the Committee on Health, 
     Education, Labor, and Pensions of the Senate or the Committee 
     on Energy and Commerce of the House reports a bill or joint 
     resolution, or an amendment is offered thereto or a 
     conference report is submitted thereon, that--
       (1) addresses health care costs, coverage, or care for the 
     uninsured;
       (2)(A) provides safety net access to integrated and other 
     health care services; or
       (B) increases the number of people with health insurance, 
     provided that such increase is not obtained primarily as a 
     result of increasing premiums for the currently insured; and
       (3) increases access to coverage through mechanisms that 
     decrease the growth of health care costs, and may include 
     tax- and market-based measures (such as tax credits, 
     deductibility, regulatory reforms, consumer-directed 
     initiatives, and other measures targeted to key segments of 
     the uninsured, such as individuals without employer-sponsored 
     coverage and college students and recent graduates),

     provided that, in the Senate, the committee is within its 
     allocation as provided under section 302(a) of the 
     Congressional Budget Act of 1974, the chairman of the 
     Committee on the Budget may make the appropriate adjustments 
     in allocations and aggregates to the extent that such 
     legislation would not increase the deficit for fiscal year 
     2006 and for the period of fiscal years 2006 through 2010.

     SEC. 305. RESERVE FUND FOR THE DISPOSAL OF UNDERUTILIZED 
                   FEDERAL REAL PROPERTY.

       If the Committee on Government Reform of the House reports 
     a bill or joint resolution, or an amendment is offered 
     thereto or a conference report is submitted thereon, that 
     enhances the Government's real property disposal authority 
     and generates discretionary savings, the chairman of the 
     Committee on the Budget may make the appropriate adjustments 
     in allocations and aggregates by the amount provided by that 
     measure for that purpose, but not to exceed $50,000,000 in 
     new budget authority and outlays flowing therefrom for fiscal 
     year 2006, and $50,000,000 in new budget authority and 
     outlays flowing therefrom for the period of fiscal years 2006 
     through 2010.

     SEC. 306. RESERVE FUND FOR HEALTH INFORMATION TECHNOLOGY AND 
                   PAY-FOR-PERFORMANCE.

       In the Senate, if the Committee on Finance or the Committee 
     on Health, Education, Labor, and Pensions reports a bill or 
     joint resolution, or if an amendment is offered thereto or if 
     a conference report is submitted thereon, that--
       (1) provides incentives or other support for adoption of 
     modern information technology to improve quality in health 
     care; and
       (2) provides for performance-based payments that are based 
     on accepted clinical performance measures that improve the 
     quality in health care;

     provided that the committee is within its allocation as 
     provided under section 302(a) of the Congressional Budget Act 
     of 1974, the chairman of the Committee on the Budget may make 
     the appropriate adjustments in allocations and aggregates to 
     the extent that such legislation would not increase the 
     deficit for the period of fiscal years 2006 through 2010.

     SEC. 307. RESERVE FUND FOR ASBESTOS INJURY TRUST FUND.

       In the Senate, if the Committee on Judiciary reports 
     legislation, or if an amendment is offered

[[Page 8280]]

     thereto or a conference report is submitted thereon, that--
       (1) provides monetary compensation to impaired victims of 
     asbestos-related disease who can establish that asbestos 
     exposure is a substantial contributing factor in causing 
     their condition;
       (2) does not provide monetary compensation to the 
     unimpaired claimants or those suffering from a disease who 
     cannot establish that asbestos exposure was a substantial 
     contributing factor in causing their condition; and
       (3) is estimated to remain funded from nontaxpayer sources 
     for the life of the fund; and

     assuming the committee is within its allocation as provided 
     under section 302(a) of the Congressional Budget Act of 1974, 
     the chairman of the Committee on the Budget may make the 
     appropriate adjustments in allocations and aggregates to the 
     extent that such legislation would not increase the deficit 
     for the period of fiscal years 2006 through 2056.

     SEC. 308. RESERVE FUND FOR ENERGY LEGISLATION.

       If a bill or joint resolution is reported, or an amendment 
     is offered thereto or a conference report is submitted 
     thereon, within the jurisdiction of the Committee on Energy 
     and Natural Resources of the Senate, that provides for a 
     national energy policy, provided that the committee is within 
     its allocation as provided under section 302(a) of the 
     Congressional Budget Act of 1974, the chairman of the 
     Committee on the Budget may make the appropriate adjustments 
     in allocations and aggregates by the amount provided by that 
     measure for that purpose, but not to exceed $100,000,000 in 
     new budget authority for fiscal year 2006 and the outlays 
     flowing from that budget authority and $2,000,000,000 in new 
     budget authority for the period of fiscal years 2006 through 
     2010 and the outlays flowing from that budget authority.

     SEC. 309. RESERVE FUND FOR THE SAFE IMPORTATION OF 
                   PRESCRIPTION DRUGS.

       If the Committee on Health, Education, Labor, and Pensions 
     of the Senate reports a bill or joint resolution, or an 
     amendment is offered thereto or a conference report is 
     submitted thereon, that permits the safe importation of 
     prescription drugs approved by the Food and Drug 
     Administration from specified countries with strong safety 
     laws, and provided that the committee is within its 
     allocation as provided under section 302(a) of the 
     Congressional Budget Act of 1974, the chairman of the 
     Committee on the Budget may make the appropriate adjustments 
     in allocations and aggregates to the extent that such 
     legislation would not increase the deficit for fiscal year 
     2006 and for the period of fiscal years 2006 through 2010.

     SEC. 310. RESERVE FUND FOR THE RESTORATION OF SCHIP FUNDS.

       If the Committee on Finance of the Senate reports a bill or 
     joint resolution, or an amendment is offered thereto or a 
     conference report is submitted thereon, that provides for the 
     restoration of unexpended funds under the State Children's 
     Health Insurance Program that reverted to the Treasury on 
     October 1, 2004, and that may provide for the redistribution 
     of such funds for outreach and enrollment as well as for 
     coverage initiatives and provided that the committee is 
     within its allocation as provided under section 302(a) of the 
     Congressional Budget Act of 1974, the chairman of the 
     Committee on the Budget may make the appropriate adjustments 
     in allocations and aggregates to the extent that such 
     legislation would not increase the deficit for fiscal year 
     2006 and for the period of fiscal years 2006 through 2010.
                      TITLE IV--BUDGET ENFORCEMENT

     SEC. 401. RESTRICTIONS ON ADVANCE APPROPRIATIONS.

       (a) In the House.--(1)(A) In the House, except as provided 
     in paragraph (2), an advance appropriation may not be 
     reported in a bill or joint resolution making a general 
     appropriation or continuing appropriation, and may not be in 
     order as an amendment thereto.
       (B) Managers on the part of the House may not agree to a 
     Senate amendment that would violate subparagraph (A) unless 
     specific authority to agree to the amendment first is given 
     by the House by a separate vote with respect thereto.
       (2) In the House, an advance appropriation may be provided 
     for fiscal year 2007 or 2008 for programs, projects, 
     activities or accounts identified in the joint explanatory 
     statement of managers accompanying this resolution under the 
     heading ``Accounts Identified for Advance Appropriations'' in 
     an aggregate amount not to exceed $23,158,000,000 in new 
     budget authority.
       (3) In this subsection, the term ``advance appropriation'' 
     means any new budget authority provided in a bill or joint 
     resolution making general appropriations or any new budget 
     authority provided in a bill or joint resolution continuing 
     appropriations for fiscal year 2006 that first becomes 
     available for any fiscal year after 2006.
       (b) In the Senate.--(1) Except as provided in paragraph 
     (2), it shall not be in order in the Senate to consider any 
     bill, joint resolution, motion, amendment, or conference 
     report that would provide an advance appropriation.
       (2) An advance appropriation may be provided for the fiscal 
     years 2007 and 2008 for programs, projects, activities, or 
     accounts identified in the joint explanatory statement of 
     managers accompanying this resolution under the heading 
     ``Accounts Identified for Advance Appropriations'' in an 
     aggregate amount not to exceed $23,158,000,000 in new budget 
     authority in each year.
       (3)(A) In the Senate, paragraph (1) may be waived or 
     suspended only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn. An affirmative vote of three-
     fifths of the Members of the Senate, duly chosen and sworn, 
     shall be required to sustain an appeal of the ruling of the 
     Chair on a point of order raised under paragraph (1).
       (B) A point of order under paragraph (1) may be raised by a 
     Senator as provided in section 313(e) of the Congressional 
     Budget Act of 1974.
       (C) If a point of order is sustained under paragraph (1) 
     against a conference report in the Senate, the report shall 
     be disposed of as provided in section 313(d) of the 
     Congressional Budget Act of 1974.
       (4) In this subsection, the term ``advance appropriation'' 
     means any new budget authority provided in a bill or joint 
     resolution making general appropriations or continuing 
     appropriations for fiscal year 2006 that first becomes 
     available for any fiscal year after 2006, or any new budget 
     authority provided in a bill or joint resolution making 
     general appropriations or continuing appropriations for 
     fiscal year 2007, that first becomes available for any fiscal 
     year after 2007.

     SEC. 402. EMERGENCY LEGISLATION.

       (a) In the House.--
       (1) Exemption of overseas contingency operations.--(A) In 
     the House, if any bill or joint resolution is reported, or an 
     amendment is offered thereto or a conference report is filed 
     thereon, that makes supplemental appropriations for fiscal 
     year 2005 or fiscal year 2006 for contingency operations 
     related to the global war on terrorism, then the new budget 
     authority, new entitlement authority, outlays, and receipts 
     resulting therefrom shall not count for purposes of sections 
     302, 303, 311, as appropriate, and 401 of the Congressional 
     Budget Act of 1974 for the provisions of such measure that 
     are designated pursuant to this subsection as making 
     appropriations for such contingency operations.
       (B) Amounts included in this resolution for the purpose set 
     forth in subparagraph (A) shall be considered to be current 
     law for purposes of the preparation of the current level of 
     budget authority and outlays and the appropriate levels shall 
     be adjusted upon the enactment of such bill.
       (2) Exemption of emergency provisions.--In the House, if a 
     bill or joint resolution is reported, or an amendment is 
     offered thereto or a conference report is filed thereon, that 
     designates a provision as an emergency requirement pursuant 
     to this subsection, then the new budget authority, new 
     entitlement authority, outlays, and receipts resulting 
     therefrom shall not count for purposes of sections 302, 303, 
     311, as appropriate, and 401 of the Congressional Budget Act 
     of 1974.
       (3) Designations.--In the House, if a provision of 
     legislation is designated as an emergency requirement under 
     this subsection, the committee report and any statement of 
     managers accompanying that legislation shall include an 
     explanation of the manner in which the provision meets the 
     criteria in subsection (c). If such legislation is to be 
     considered by the House without being reported, then the 
     committee shall cause the explanation to be published in the 
     Congressional Record in advance of floor consideration.
       (b) In the Senate.--
       (1) Authority to designate.--With respect to a provision of 
     direct spending or receipts legislation or appropriations for 
     discretionary accounts that the Congress designates as an 
     emergency requirement in such measure, the amounts of new 
     budget authority, outlays, and receipts in all fiscal years 
     resulting from that provision shall be treated as an 
     emergency requirement for the purpose of this subsection.
       (2) Exemption of emergency provisions.--Any new budget 
     authority, outlays, and receipts resulting from any provision 
     designated as an emergency requirement, pursuant to this 
     subsection, in any bill, joint resolution, amendment, or 
     conference report shall not count for purposes of sections 
     302 and 311 of the Congressional Budget Act of 1974 and 
     section 404 of this resolution (relating to discretionary 
     spending limits in the Senate) and section 505 of the 
     Concurrent Resolution on the Budget for Fiscal Year 2004, H. 
     Con. Res. 95 (relating to the paygo requirement in the 
     Senate).
       (3) Designations.--If a provision of legislation is 
     designated as an emergency requirement under this subsection, 
     the committee report and any statement of managers 
     accompanying that legislation shall include an explanation of 
     the manner in which the provision meets the criteria in 
     subsection (c).
       (4) Definitions.--In this subsection, the terms ``direct 
     spending'', ``receipts'', and ``appropriations for 
     discretionary accounts'' means any provision of a bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending, receipts, or appropriations as those 
     terms have been defined and interpreted for purposes of the 
     Balanced Budget and Emergency Deficit Control Act of 1985.
       (5) Point of order.--When the Senate is considering a bill, 
     resolution, amendment, motion, or conference report, if a 
     point of order is made by a Senator against an emergency 
     designation in that measure, that provision making such a 
     designation shall be stricken from the measure and may not be 
     offered as an amendment from the floor.
       (6) Waiver and appeal.--Paragraph (5) may be waived or 
     suspended in the Senate only by an affirmative vote of three-
     fifths of the Members, duly chosen and sworn. Appeals in the 
     Senate from the decisions of the Chair relating to any 
     provision of this subsection shall be limited to 1 hour, to 
     be equally divided between, and controlled by, the appellant 
     and the manager of the bill or joint resolution, as the case

[[Page 8281]]

     may be. An affirmative vote of three-fifths of the Members of 
     the Senate, duly chosen and sworn, shall be required to 
     sustain an appeal of the ruling of the Chair on a point of 
     order raised under this subsection.
       (7) Definition of an emergency designation.--For purposes 
     of paragraph (5), a provision shall be considered an 
     emergency designation if it designates any item as an 
     emergency requirement pursuant to this subsection.
       (8) Form of the point of order.--A point of order under 
     paragraph (5) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       (9) Conference reports.--If a point of order is sustained 
     under paragraph (5) against a conference report, the report 
     shall be disposed of as provided in section 313(d) of the 
     Congressional Budget Act of 1974.
       (10) Exception for defense spending.--Paragraph (5) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations under the defense 
     function (050).
       (11) Exemption of overseas contingent operations.--
       (A) In general.--In the Senate, if a bill, joint 
     resolution, amendment, or a conference report makes 
     supplemental appropriations for fiscal year 2006 for overseas 
     contingency operations related to the global war on 
     terrorism, then the new budget authority, new entitlement 
     authority, and outlays resulting from the provisions of such 
     measure that are designated pursuant to this subsection as 
     making appropriations for such contingency operations--
       (i) shall not count for purposes of sections 302 and 311 of 
     the Congressional Budget Act of 1974; and
       (ii) shall not count for the purpose of section 404 of this 
     resolution (relating to discretionary spending limits in the 
     Senate) and section 505 of the Concurrent Resolution on the 
     Budget for Fiscal Year 2004, H. Con. Res. 95 (relating to the 
     pay-go requirement).
       (B) Limitation.--The amounts that are not counted for 
     purposes of this subsection shall not exceed $50,000,000,000 
     in new budget authority and outlays associated with the 
     budget authority.
       (c) Criteria.--
       (1) In general.--For purposes of this section, any 
     provision is an emergency requirement if the situation 
     addressed by such provision is--
       (A) necessary, essential, or vital (not merely useful or 
     beneficial);
       (B) sudden, quickly coming into being, and not building up 
     over time;
       (C) an urgent, pressing, and compelling need requiring 
     immediate action;
       (D) subject to paragraph (2), unforeseen, unpredictable, 
     and unanticipated; and
       (E) not permanent, temporary in nature.
       (2) Unforeseen.--An emergency that is part of an aggregate 
     level of anticipated emergencies, particularly when normally 
     estimated in advance, is not unforeseen.

     SEC. 403. EXTENSION OF SENATE ENFORCEMENT.

       (a) Extension.--Notwithstanding any provision of the 
     Congressional Budget Act of 1974, subsections (c)(2) and 
     (d)(3) of section 904 of the Congressional Budget Act of 1974 
     shall remain in effect for purposes of Senate enforcement 
     through September 30, 2010.
       (b) In General.--
       (1) Unfunded mandates.--Section 425(a)(1) and (2) of the 
     Congressional Budget Act of 1974 shall be subject to the 
     waiver and appeal requirements of subsections (c)(2) and 
     (d)(3) of section 904 of the Congressional Budget Act of 
     1974.
       (2) Consideration of budget legislation.--Section 303 of 
     the Congressional Budget Act of 1974 shall be subject to the 
     waiver and appeal requirements of subsections (c)(2) and 
     (d)(3) of section 904 of the Congressional Budget Act of 
     1974. For the purpose of Section 303, the year covered by the 
     resolution shall be construed as the upcoming fiscal year 
     only.
       (3) Application to reconciliation.--This subsection shall 
     not apply to any legislation reported pursuant to 
     reconciliation directions contained in a concurrent 
     resolution on the budget.
       (4) Effective date.--This subsection shall remain in effect 
     for purposes of Senate enforcement through September 30, 
     2010.

     SEC. 404. DISCRETIONARY SPENDING LIMITS IN THE SENATE.

       (a) Discretionary Spending Limits.--In the Senate and as 
     used in this section, the term ``discretionary spending 
     limit'' means--
       (1) for fiscal year 2006, $842,265,000,000 in new budget 
     authority and $916,081,000,000 in outlays for the 
     discretionary category;
       (2) for fiscal year 2007, $866,038,000,000 in new budget 
     authority for the discretionary category; and
       (3) for fiscal year 2008, $887,005,000,000 in new budget 
     authority for the discretionary category;
     as adjusted in conformance with the adjustment procedures in 
     subsection (d).
       (b) Adjustments to Discretionary Spending Limits.--
       (1) Continuing disability reviews.--If a bill or joint 
     resolution is reported making appropriations for fiscal year 
     2006 that appropriates $412,000,000 for continuing disability 
     reviews for the Social Security Administration, and provides 
     an additional appropriation of $189,000,000 for continuing 
     disability reviews for the Social Security Administration, 
     then the allocation to the Senate Committee on Appropriations 
     shall be increased by $189,000,000 in budget authority and 
     outlays flowing from the budget authority for fiscal year 
     2006.
       (2) Internal revenue service tax enforcement.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2006 that appropriates $6,447,000,000 for enhanced tax 
     enforcement to address the ``Federal tax gap'' for the 
     Internal Revenue Service, and provides an additional 
     appropriation of $446,000,000 for enhanced tax enforcement to 
     address the ``Federal tax gap'' for the Internal Revenue 
     Service, then the allocation to the Senate Committee on 
     Appropriations shall be increased by $446,000,000 in budget 
     authority and outlays flowing from the budget authority for 
     fiscal year 2006.
       (3) Health care fraud and abuse control program.--If a bill 
     or joint resolution is reported making appropriations for 
     fiscal year 2006 that appropriates $80,000,000 to the health 
     care fraud and abuse control program at the Department of 
     Health and Human Services, then the allocation to the Senate 
     Committee on Appropriations shall be increased by $80,000,000 
     in budget authority and outlays flowing from the budget 
     authority for fiscal year 2006.
       (4) Unemployment insurance improper payments.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2006 that appropriates $10,000,000 for unemployment 
     insurance improper payments reviews for the Department of 
     Labor, and provides an additional appropriation of 
     $40,000,000 for unemployment insurance improper payments 
     reviews for the Department of Labor, then the allocation to 
     the Senate Committee on Appropriations shall be increased by 
     $40,000,000 in budget authority and outlays flowing from the 
     budget authority for fiscal year 2006.
       (c) Discretionary Spending Point of Order in the Senate.--
       (1) In general.--Except as otherwise provided in this 
     subsection, it shall not be in order in the Senate to 
     consider any bill or joint resolution (or amendment, motion, 
     or conference report on that bill or joint resolution) that 
     would cause the discretionary spending limits in this section 
     to be exceeded.
       (2) Waiver.--This subsection may be waived or suspended in 
     the Senate only by the affirmative vote of three-fifths of 
     the Members, duly chosen and sworn.
       (3) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this 
     subsection.
       (d) Procedure for Adjustments.--
       (1) In general.--
       (A) Chairman.--After the reporting of a bill or joint 
     resolution, or the offering of an amendment thereto or the 
     submission of a conference report thereon, the chairman of 
     the Committee on the Budget may make the adjustments set 
     forth in subparagraph (B) for the amount of new budget 
     authority in that measure (if that measure meets the 
     requirements set forth in paragraph (2)) and the outlays 
     flowing from that budget authority.
       (B) Matters to be adjusted.--The adjustments referred to in 
     subparagraph (A) are to be made to--
       (i) the discretionary spending limits, if any, set forth in 
     the appropriate concurrent resolution on the budget;
       (ii) the allocations made pursuant to the appropriate 
     concurrent resolution on the budget pursuant to section 
     302(a) of the Congressional Budget Act of 1974; and
       (iii) the budgetary aggregates as set forth in the 
     appropriate concurrent resolution on the budget.
       (2) Amounts of adjustments.--The adjustment referred to in 
     paragraph (1) shall be an amount provided for the fiscal year 
     2006 pursuant to subsection (b).
       (3) Reporting revised suballocations.--Following any 
     adjustment made under paragraph (1), the Committee on 
     Appropriations of the Senate shall report appropriately 
     revised suballocations under section 302(b) of the 
     Congressional Budget Act of 1974 to carry out this 
     subsection.

     SEC. 405. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 
                   AND AGGREGATES.

       (a) Application.--Any adjustments of allocations and 
     aggregates made pursuant to this resolution shall--
       (1) apply while that measure is under consideration;
       (2) take effect upon the enactment of that measure; and
       (3) be published in the Congressional Record as soon as 
     practicable.
       (b) Effect of Changed Allocations and Aggregates.--Revised 
     allocations and aggregates resulting from these adjustments 
     shall be considered for the purposes of the Congressional 
     Budget Act of 1974 as allocations and aggregates contained in 
     this resolution.
       (c) Budget Committee Determinations.--For purposes of this 
     resolution--
       (1) the levels of new budget authority, outlays, direct 
     spending, new entitlement authority, revenues, deficits, and 
     surpluses for a fiscal year or period of fiscal years shall 
     be determined on the basis of estimates made by the 
     appropriate Committee on the Budget; and
       (2) such chairman may make any other necessary adjustments 
     to such levels, including adjustments necessary, and in the 
     House separate allocations, to reflect the timing of 
     responses to reconciliation directives pursuant to sections 
     201 and 202 of this resolution.

[[Page 8282]]



     SEC. 406. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 
                   DEFINITIONS.

       (a) In General.--Upon the enactment of a bill or joint 
     resolution providing for a change in concepts or definitions, 
     the appropriate chairman of the Committee on the Budget shall 
     make adjustments to the levels and allocations in this 
     resolution in accordance with section 251(b) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (as in 
     effect prior to September 30, 2002).
       (b) Pell Grants.--
       (1) Budget authority.--If appropriations of discretionary 
     new budget authority enacted for the Federal Pell Grant 
     Program are insufficient to cover the full cost of Pell 
     Grants in the upcoming award year, adjusted for any 
     cumulative funding surplus or shortfall from prior years, the 
     budget authority counted against the bill for the Pell Grant 
     Program shall be equal to the adjusted full cost.
       (2) Application.--This subsection shall apply only to new 
     Pell Grant awards approved in legislation for award year 
     2006-2007 and subsequent award years and shall not apply to 
     the cumulative shortfall through award year 2005-2006.
       (3) Estimates.--The estimate of the budget authority 
     associated with the full cost of Pell Grants shall be based 
     on the maximum award and any changes in eligibility 
     requirements, using current economic and technical 
     assumptions and as determined pursuant to scorekeeping 
     guidelines, if any.

     SEC. 407. LIMITATION ON LONG-TERM SPENDING PROPOSALS.

       (a) Congressional Budget Office Analysis of Proposals.--The 
     Director of the Congressional Budget Office shall, to the 
     extent practicable, prepare for each bill or joint resolution 
     reported from committee (except measures within the 
     jurisdiction of the Committee on Appropriations), or 
     amendments thereto or conference reports thereon, an estimate 
     of whether the measure would cause, relative to current law, 
     a net increase in direct spending in excess of $5 billion in 
     any of the four 10-year periods beginning in fiscal year 2016 
     through fiscal year 2055.
       (b) Point of Order.--In the Senate, it shall not be in 
     order to consider any bill, joint resolution, amendment, 
     motion, or conference report that would cause a net increase 
     in direct spending in excess of $5 billion in any of the four 
     10-year periods beginning in 2016 through 2055.
       (c) Waiver.--This section may be waived or suspended only 
     by the affirmative vote of three-fifths of the Members, duly 
     chosen and sworn.
       (d) Appeals.--An affirmative vote of three-fifths of the 
     Members, duly chosen and sworn, shall be required to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
       (e) Determinations of Budget Levels.--For purposes of this 
     section, the levels of net direct spending shall be 
     determined on the basis of estimates provided by the 
     Committee on the Budget of the Senate.
       (f) Application to Reconciliation.--This section shall not 
     apply to any legislation reported pursuant to reconciliation 
     directions contained in a concurrent resolution on the 
     budget.
       (g) Sunset.--This section shall expire on September 30, 
     2010.

     SEC. 408. COMPLIANCE WITH SECTION 13301 OF THE BUDGET 
                   ENFORCEMENT ACT OF 1990.

       (a) In General.--In the House and the Senate, 
     notwithstanding section 302(a)(1) of the Congressional Budget 
     Act of 1974 and section 13301 of the Budget Enforcement Act 
     of 1990, the joint explanatory statement accompanying the 
     conference report on any concurrent resolution on the budget 
     shall include in its allocation under section 302(a) of the 
     Congressional Budget Act of 1974 to the Committee on 
     Appropriations amounts for the discretionary administrative 
     expenses of the Social Security Administration.
       (b) Special Rule.--In the House, for purposes of applying 
     section 302(f) of the Congressional Budget Act of 1974, 
     estimates of the level of total new budget authority and 
     total outlays provided by a measure shall include any 
     discretionary amounts provided for the Social Security 
     Administration.

     SEC. 409. EXERCISE OF RULEMAKING POWERS.

       Congress adopts the provisions of this title--
       (1) as an exercise of the rulemaking power of the Senate 
     and the House, respectively, and as such they shall be 
     considered as part of the rules of each House, or of that 
     House to which they specifically apply, and such rules shall 
     supersede other rules only to the extent that they are 
     inconsistent therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change those rules (so far as they relate to 
     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. 410. TREATMENT OF ALLOCATIONS IN THE HOUSE.

       (a) In General.--In the House, the Committee on 
     Appropriations may make a separate suballocation for 
     appropriations for the legislative branch for the first 
     fiscal year of this resolution. Such suballocation shall be 
     deemed to be made under section 302(b) of the Congressional 
     Budget Act of 1974 and shall be treated as such a 
     suballocation for all purposes under section 302 of such Act.
       (b) Display of Committee Allocations.--An allocation to a 
     committee under section 302(a) of the Congressional Budget 
     Act of 1974 may display an amount to reflect a committee's 
     instruction under the reconciliation process, but it shall 
     not constitute an allocation within the meaning of section 
     302 of such Act. Changes in levels of direct spending 
     achieved in a reconciliation bill submitted pursuant to title 
     II of this resolution shall not be included in current levels 
     of new budget authority and outlays for purposes of enforcing 
     an allocation under 302(a) of such Act.

     SEC. 411. SPECIAL PROCEDURES TO ACHIEVE SAVINGS IN MANDATORY 
                   SPENDING THROUGH FY2014.

       (a) Sense of Congress.--The Congress finds that--
       (1) the share of the budget consumed by mandatory spending 
     has been growing since the mid-1970s, and now is about 54 
     percent;
       (2) this portion of the budget is continuing to grow, 
     crowding out other priorities and threatening overall budget 
     control;
       (3) mandatory spending is intrinsically difficult to 
     control;
       (4) these programs are subject to a variety of factors 
     outside the control of Congress, such as demographics, 
     economic conditions, and medical prices;
       (5) Congress should make an effort at least every other 
     year, to review mandatory spending;
       (6) the reconciliation process set forth in the 
     Congressional Budget Act of 1974 is a viable tool to reduce 
     the rate of growth in mandatory spending; and
       (7) concurrent resolutions on the budget for fiscal years 
     2007 through 2010 should include reconciliation instructions 
     to committees, every other year, pursuant to section 310(a) 
     of the Congressional Budget Act of 1974 to achieve 
     significant savings in mandatory spending.
                      TITLE V--SENSE OF THE SENATE

     SEC. 501. SENSE OF THE SENATE REGARDING UNAUTHORIZED 
                   APPROPRIATIONS.

       It is the sense of the Senate that Congress should--
       (1) preclude consideration of any bill, joint resolution, 
     motion, amendment, or conference report that would provide an 
     appropriation, in whole or in part, for programs not 
     specifically authorized by law or Treaty stipulation, or the 
     amount of which exceeds the amount specifically authorized by 
     law or Treaty stipulation, or that would provide a limited 
     tax benefit as defined by the Line Item Veto Act of 1996 
     (Public Law 104-130); and
       (2) determine a method for effectively containing the 
     extraordinary growth in unauthorized earmarks.

     SEC. 502. SENSE OF THE SENATE REGARDING A COMMISSION TO 
                   REVIEW THE PERFORMANCE OF PROGRAMS.

       It is the sense of the Senate that a commission should be 
     established to review Federal agencies, and programs within 
     such agencies, including an assessment of programs on an 
     accrual basis, and legislation to implement those 
     recommendations, with the express purpose of providing 
     Congress with recommendations, to realign or eliminate 
     Government agencies and programs that are wasteful, 
     duplicative, inefficient, outdated, irrelevant, or have 
     failed to accomplish their intended purpose.

     SEC. 503. SENSE OF THE SENATE REGARDING TRICARE.

       It is the sense of the Senate that Congress should provide 
     sufficient funding to the Department of Defense to offer 
     members of the Reserve Component continuous access to 
     TRICARE, for a premium, regardless of their activation 
     status.

     SEC. 504. SENSE OF THE SENATE REGARDING TRIBAL COLLEGES AND 
                   UNIVERSITIES.

       It is the sense of the Senate that--
       (1) this resolution recognizes the funding challenges faced 
     by tribal colleges, and universities and assumes that 
     equitable consideration will be provided to them through 
     funding of the Tribally Controlled College or University 
     Assistance Act, the Equity in Educational Land Grant Status 
     Act, title III of the Higher Education Act of 1965, and the 
     National Science Foundation, Department of Defense, and 
     Housing and Urban Development Tribal College and University 
     Programs; and
       (2) such equitable consideration reflects the intent of 
     Congress to continue to work toward statutory Federal funding 
     authorization goals for tribal colleges and universities.

     SEC. 505. SENSE OF THE SENATE REGARDING SOCIAL SECURITY 
                   RESTRUCTURING.

       It is the sense of the Senate that--
       (1) the President, the Congress, and the American people 
     including seniors, workers, women, minorities, and disabled 
     persons should work together at the earliest opportunity to 
     enact legislation to achieve a solvent and permanently 
     sustainable Social Security system;
       (2) Social Security reform must--
       (A) protect current and near retirees from any changes to 
     Social Security benefits;
       (B) reduce the pressure on future taxpayers and on other 
     budgetary priorities;
       (C) provide benefit levels that adequately reflect 
     individual contributions to the Social Security system; and
       (D) preserve and strengthen the safety net for vulnerable 
     populations including the disabled and survivors.

     SEC. 506. SENSE OF THE SENATE REGARDING FUNDING FOR SUBSONIC 
                   AND HYPERSONIC AERONAUTICS RESEARCH BY THE 
                   NATIONAL AERONAUTICS AND SPACE ADMINISTRATION.

       It is the sense of the Senate that--
       (1) the level of funding provided for the Aeronautics 
     Mission Directorate within the National Aeronautics and Space 
     Administration should be increased by $1,582,700,000 between 
     fiscal year 2006 and fiscal year 2010; and
       (2) the increases provided should be applied to the Vehicle 
     Systems portion of the Aeronautics

[[Page 8283]]

     Mission Directorate budget for use in subsonic and hypersonic 
     aeronautical research.

     SEC. 507. SENSE OF THE SENATE REGARDING THE ACQUISITION OF 
                   THE NEXT GENERATION DESTROYER (DDX).

       (a) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) it is ill-advised for the Department of Defense to 
     pursue a winner-take-all strategy for the acquisition of 
     destroyers under the next generation destroyer (DDX) program; 
     and
       (2) the amounts identified in this resolution assume that 
     the Department of Defense will not acquire any destroyer 
     under the next generation destroyer program through a winner-
     take-all strategy.
       (b) Winner-Take-All Strategy Defined.--In this section, the 
     term ``winner-take-all strategy'', with respect to the 
     acquisition of destroyers under the next generation destroyer 
     program, means the acquisition (including design and 
     construction) of such destroyers through a single shipyard.
       And the Senate agree to the same.

     Jim Nussle,
     Jim Ryun,
                                Managers on the Part of the House.

     Judd Gregg,
     Pete Domenici,
     Chuck Grassley,
     Wayne Allard,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on disagreeing votes of the two Houses on the 
     amendment of the Senate to the concurrent resolution (House 
     Concurrent Resolution 95), establishing the congressional 
     budget for the United States Government for fiscal year 2006, 
     and setting forth appropriate budgetary levels for each of 
     fiscal years 2007 through 2010, submit the following joint 
     statement to the House and the Senate in explanation of the 
     effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck all out of the House resolution 
     after the resolving clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House resolution and the Senate amendment. The differences 
     between the House bill, the Senate amendment, and the 
     substitute agreed to in conference are noted below, except 
     for clerical corrections, conforming changes made necessary 
     by agreements reached by the conferees, and minor drafting 
     and clarifying changes.

                          DISPLAYS AND AMOUNTS

       The required contents of concurrent budget resolutions are 
     set forth in section 301(a) of the Congressional Budget Act 
     of 1974. The years in this document are fiscal years unless 
     otherwise noted.
       Both the House-passed and Senate-passed budget resolutions, 
     as well as this conference report, retain the conventional 
     budget function structure of past resolutions. These amounts 
     are not binding; they are intended to provide an overall 
     accounting of estimated spending requirements and priorities 
     according to major categories of government activities. The 
     budget resolution is the only legislative vehicle that 
     reflects such a global assessment of the demands on Federal 
     resources.
       The treatment of budget function levels in the respective 
     budget resolutions and the conference report is as follows:


                            HOUSE RESOLUTION

       In the House resolution, the discretionary amounts in each 
     function (amounts controlled through the annual 
     appropriations process) are, in general, the President(s 
     recommended functional levels, for the budget year and the 
     outyears, as re-estimated by the Congressional Budget Office 
     [CBO]. In certain functions, the discretionary figures are 
     modified to account for congressional policy judgments.
       For mandatory spending--spending not controlled by annual 
     appropriations--the amounts in the function are, in general, 
     current-law levels as estimated by CBO. In some cases, these 
     levels are adjusted to accommodate certain legislative 
     initiatives. In addition, the Allowances function (Function 
     920) calls for a reduction in total projected mandatory 
     spending of $68 billion over 5 years, to be achieved through 
     the reconciliation process (see title II). Although specific 
     amounts of the total savings are assigned to specific 
     authorizing committees in reconciliation, the savings amounts 
     are not allocated among specific budget functions. The intent 
     is to assure the widest possible discretion among authorizing 
     committees. Although each authorizing committee in 
     reconciliation is assigned a savings amount, nothing in the 
     budget functions constrains any committee(s policy choices to 
     achieve those savings.
       The House resolution also adjusts levels for the current 
     year, fiscal year 2005, to accommodate $81.1 billion in 
     supplemental funding for military operations in Iraq and 
     Afghanistan, and other enacted legislation.


                            SENATE AMENDMENT

       The Senate amendment includes all the items required under 
     section 301(a) of the Congressional Budget Act. The Senate 
     amendment sets ``first-year'' levels for both 2005 and 2006, 
     as the conference report on the 2005 budget resolution was 
     not adopted by the Senate.


                          CONFERENCE AGREEMENT

       In the conference agreement, discretionary spending amounts 
     are generally the President(s recommended levels, for the 
     budget year and the outyears, as re-estimated by CBO. In 
     certain functions, the discretionary figures are modified to 
     account for congressional policy judgments.
       For mandatory spending, the functional amounts are 
     generally current-law levels as estimated by CBO. In some 
     cases, these levels are adjusted to accommodate certain 
     legislative initiatives. In addition, the Allowances function 
     (Function 920) calls for a reduction in total projected 
     mandatory spending outlays of $34.7 billion over 5 years, to 
     be achieved through the reconciliation process (see title 
     II). Although specific portions of this savings amount are 
     assigned to specific authorizing committees in 
     reconciliation, the savings amounts are not allocated among 
     budget functions. The intent is to assure the widest possible 
     discretion among authorizing committees. Although each 
     authorizing committee in reconciliation is assigned a savings 
     amount, nothing in the budget functions constrains any 
     committee(s policy choices to achieve those savings.
       The conference agreement also adjusts levels for the 
     current year, fiscal year 2005, to accommodate $81.9 billion 
     in supplemental funding for military operations in Iraq and 
     Afghanistan.

                     AGGREGATE AND FUNCTION LEVELS

       The following tables are included in this section:
     Conference Report on the Fiscal Year 2006 Budget Resolution: 
         Total Spending and Revenues.
     Conference Report on the Fiscal Year 2006 Budget Resolution: 
         Discretionary Spending
     Conference Report on the Fiscal Year 2006 Budget Resolution: 
         Mandatory Spending
     House-Passed Fiscal Year 2006 Budget Resolution: Total 
         Spending and Revenues
     House-Passed Fiscal Year 2006 Budget Resolution: 
         Discretionary Spending
     House-Passed Fiscal Year 2006 Budget Resolution: Mandatory 
         Spending
     Senate-Passed Fiscal Year 2006 Budget Resolution: Total 
         Spending and Revenues
     Senate-Passed Fiscal Year 2006 Budget Resolution: 
         Discretionary Spending
     Senate-Passed Fiscal Year 2006 Budget Resolution: Mandatory 
         Spending

                         FUNCTIONS AND REVENUES

       Pursuant to section 301(a)(3) of the Budget Act, the budget 
     resolution must set appropriate levels for each major 
     functional category based on the 302(a) allocations and the 
     budgetary totals.
       The respective levels of the House resolution, the Senate 
     amendment, and the Conference Agreement for each major budget 
     function, as well as revenue totals, are discussed in the 
     following section. A summary of the overall budget policy is 
     as follows:
       Total spending is $2.562 trillion in budget authority [BA] 
     and $2.577 trillion in outlays in fiscal year 2006, and 
     $13.878 trillion in BA and $13.840 trillion in outlays over 
     2006-10.
       Discretionary spending for fiscal year 2006 totals $843.0 
     billion in BA and $947.3 billion in outlays. These two 
     aggregate amounts (minus cap adjustments in the Senate) are 
     allocated to the Appropriations Committees to be suballocated 
     among their respective appropriations subcommittees. This sum 
     can accommodate the President's recommendation for $419.5 
     billion for national defense, $32.5 billion for homeland 
     security, and $391.1 billion for other discretionary 
     spending. The total excludes a sum of $50 billion toward 
     supplemental funding for military operations in Iraq and 
     Afghanistan.
       Mandatory spending totals $1.669 trillion in BA and $1.598 
     trillion in outlays in fiscal year 2006, and $9.401 trillion 
     in BA and $9.068 trillion in outlays over 2006-10. This 
     includes $34.7 billion in reconciled mandatory outlay savings 
     over the 5-year period. The total of these savings is 
     reflected in Function 920, and divided among authorizing 
     committees in the reconciliation directives of this 
     conference report. Specific policies will be determined by 
     the committees of jurisdiction.
       Revenue totals $2.195 trillion in fiscal year 2006, and 
     $12.440 trillion over 5 years. The conference agreement 
     includes tax reductions of $17.8 billion in fiscal year 2006, 
     and $105.7 billion over 5 years. Of these amounts, the 
     agreement reconciles $11.0 billion in tax reduction in 2006, 
     and $70.0 billion over 5 years. The conference report assumes 
     that tax rates are not increased (as they would be under 
     current law). Specific tax relief policies will be determined 
     by the Committee on Ways and Means in the House, and the 
     Committee on Finance in the Senate.
       The conference report reduces the budget deficit from 
     $382.7 billion (3.0 percent of gross domestic product [GDP]) 
     in fiscal year 2006, to $210.9 billion (1.3 percent of GDP) 
     in 2010.
       The following section describes the conference report's 
     revenue and spending levels according to the budget's 
     functional categories.

                                Revenue


                                summary

       The component of the budget resolution designated as 
     revenue reflects all of the Federal Government's various tax 
     receipts that

[[Page 8284]]

     are classified as ``on budget.'' This includes individual 
     income taxes; corporate income taxes; excise taxes, such as 
     the gasoline tax; and other taxes, such as estate and gift 
     taxes. The component of social insurance taxes that is 
     collected for the Social Security system--the Old Age and 
     Survivors and Disability Insurance [OASDI] payroll tax--is 
     ``off budget.'' The remaining social insurance taxes (the 
     Hospital Insurance [HI] payroll tax portion of Medicare, the 
     Federal Unemployment Tax Act [FUTA] payroll tax, railroad 
     retirement and other retirement systems) are all on budget. 
     Customs duties, tariffs, and other miscellaneous receipts 
     also are included in the revenue function. Pursuant to the 
     Congressional Budget Act of 1974 and the Budget Enforcement 
     Act of 1990, Social Security payroll taxes, which constitute 
     slightly more than a quarter of all Federal receipts, are not 
     included in the budget resolution.


                            HOUSE RESOLUTION

       The budget resolution calls for $1.590 trillion in on-
     budget revenue for fiscal year 2006, and $9.080 trillion over 
     2006-10. Total revenue in the budget resolution is $2.195 
     trillion for fiscal year 2006 and $12.441 trillion over 2006-
     10. The resolution assumes tax reductions of $16.623 billion 
     for fiscal year 2006 and $105.715 billion over 2006-10--
     principally the result of preventing automatic tax increases 
     that otherwise would occur. Of these amounts, the resolution 
     reconciles $16.623 in tax reduction in 2006, and $45.0 
     billion over 5 years.
       For a complete summary of the House-passed revenue levels, 
     see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate-passed budget resolution includes $1.589 
     trillion in on budget revenue for 2006, and $9.057 trillion 
     over 2006-10. Total revenue in the budget resolution is 
     $2.193 trillion for fiscal year 2006 and $12.418 trillion 
     over 2006-10. The resolution assumes policies with a revenue 
     impact of $19.016 billion for fiscal year 2006 and $128.580 
     billion over 2006-10. The Senate resolution assumes that tax 
     rates are not increased (as they would be under current law). 
     The resolution assumes a modest reduction in revenues, 
     relative to the baseline, that balances the need for fiscal 
     responsibility with the need to continue the modest tax rates 
     necessary for economic growth and job creation.
       During Senate consideration of the budget resolution, the 
     Senate adopted the Bunning amendment, which reduced revenues 
     by $63.9 billion over 2006-10, and the Kennedy amendment, 
     which increased revenues by $5.5 billion over 2006-10.


                          CONFERENCE AGREEMENT

       The conference agreement includes $1.6 trillion in on-
     budget revenue for 2006, and $9.1 trillion over 2006-10. 
     Total revenue is $2.2 trillion for fiscal year 2006 and $12.4 
     trillion over 2006-10. The agreement includes tax reductions 
     of $17.8 billion for fiscal year 2006 and $105.7 billion over 
     2006-10. Of these, the agreement reconciles $11.0 billion in 
     revenue reductions in fiscal year 2006, and $70.0 billion 
     over 2006-10.
       The conference report assumes that tax rates are not 
     increased (as they would be under current law). Specific tax 
     relief policies will be determined by the Committee on Ways 
     and Means in the House, and the Committee on Finance in the 
     Senate.

                     National Defense: Function 050


                            function summary

       The National Defense function includes funds to develop, 
     maintain, and equip the military forces of the United States. 
     More than 95 percent of the funding in this function goes to 
     Department of Defense [DOD] military activities; the 
     remaining funding in the function applies to atomic energy 
     defense activities of the Department of Energy, and other 
     defense-related activities.


                            house resolution

       The resolution calls for a total of $441.6 billion in BA 
     and $475.6 billion in outlays in fiscal year 2006, and 
     $2,408.2 billion in BA and $2,402.4 in outlays over 5 years. 
     The outlay figures include the fiscal year 2005 supplemental. 
     Elsewhere (in Function 920) the resolution includes $50 
     billion for fiscal year 2006 in anticipation of additional 
     needs in Afghanistan, Iraq, and the global war on terrorism. 
     For a complete summary of the House-passed function levels, 
     including the discretionary and mandatory spending breakdown, 
     see H. Rept. 109-17.


                            senate amendment

       The Senate amendment reflects a total of $491.6 billion in 
     BA and $496.1 billion in outlays in fiscal year 2006, and 
     $2,458 billion in BA and $2,450.8 billion in outlays over 5 
     years. These totals include an anticipated fiscal year 2006 
     supplemental appropriation.


                          conference agreement

       The totals for this function appear in the budget 
     resolution conference agreement tables. These levels 
     accommodate the President's request for national defense. 
     Elsewhere (in Function 920) the agreement includes $50 
     billion for fiscal year 2006 in anticipation of additional 
     needs in Afghanistan, Iraq, and the global war on terrorism. 
     (The agreement also adjusts the Function 920 levels for the 
     current year, fiscal year 2005, to accommodate $81.9 billion 
     in supplemental funding for military operations in Iraq and 
     Afghanistan, and other enacted legislation.)
       The mandatory figures reflect the Congressional Budget 
     Office [CBO] baseline levels.
       The conference conferees understand the Navy may review 
     whether advance appropriations can improve its procurement of 
     ships and provide savings as it designs its 2007 budget. In 
     addition, the conferees intend to request the Government 
     Accountability Office [GAO] to assess the implications of 
     using advance appropriations to procure ships.

                  International Affairs: Function 150


                            function summary

       This function includes international development and 
     humanitarian assistance; international security assistance; 
     the conduct of foreign affairs; foreign information and 
     exchange activities; and international financial programs. 
     The major agencies in this function include the Department of 
     Agriculture, the Department of State, the Department of the 
     Treasury, the United States Agency for International 
     Development, and the Millennium Challenge Corporation.


                            house resolution

       The resolution calls for $31.7 billion in BA and $35.2 
     billion in outlays in fiscal year 2006, and $171.9 billion in 
     BA and $164.6 billion in outlays over 5 years. The function 
     totals are $171.9 billion in BA and $164.6 billion in outlays 
     over 5 years. The discretionary component of these amounts is 
     the President(s recommended level, as re-estimated by the 
     Congressional Budget Office, with the following adjustments: 
     the starting level was reduced by $1.2 billion; and a further 
     reduction was made with the adoption of the Bradley 
     amendment, which shifted $229 million in fiscal year 2006 and 
     $1.15 billion over 5 years to function 700 to provide for an 
     increase in the Department of Veterans Affairs( medical care 
     funding.
       For a complete summary of the House-passed function levels, 
     including the discretionary and mandatory spending breakdown, 
     see H. Rept. 109-17.


                            senate amendment

       The Senate amendment reflects a total of $32.9 billion in 
     BA and $35.4 billion in outlays in fiscal year 2006, and 
     $180.6 billion in BA and $171.2 billion in outlays over 5 
     years.


                          conference agreement

       The totals for this function appear in the budget 
     resolution conference agreement tables. Mandatory spending 
     figures are the CBO baseline levels.
       The conference agreement recognizes the importance of the 
     Global Fund and its role in eradicating HIV/AIDS, 
     tuberculosis, and malaria and encourages the Appropriations 
     Committees to ensure the U.S. is able to donate the maximum 
     allowed (a one-to-two ratio for U.S./international 
     contributions) by law (Public Law 108-25).

          General Science, Space, and Technology: Function 250


                            function summary

       The largest component of this function--about two-thirds of 
     total spending--is for the space flight, research, and 
     supporting activities of the National Aeronautics and Space 
     Administration. The function also contains general science 
     funding, including the budgets for the National Science 
     Foundation, and the fundamental science programs of the 
     Department of Energy.


                            house resolution

       The resolution calls for a total of $24.7 billion in BA and 
     $23.9 billion in outlays in fiscal year 2006, and $127.5 
     billion in budget authority and $124.2 billion in outlays 
     over 5 years. Within Function 250, the Budget Committee 
     assumes full funding of the President's request for NASA. For 
     a complete summary of the House-passed function levels, 
     including the discretionary and mandatory spending breakdown, 
     see H. Rept. 109-17.


                            senate amendment

       The Senate amendment reflects a total of $24.7 billion in 
     BA and $23.9 billion in outlays in fiscal year 2006, and 
     $128.3 billion in BA and $124.9 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

        The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels for both the budget year and the out years 
     are the President's recommended levels, as re-estimated by 
     CBO. Mandatory spending reflects the CBO baseline levels.

                          Energy: Function 270


                            FUNCTION Summary

       This function includes civilian energy and environmental 
     program of the Department of Energy [DOE] (it does not 
     include DOE's national security activities--the National 
     Nuclear Security Administration--which are in Function 050, 
     or its basic research and science activities, which are in 
     Function 250). Function 270 also includes the Rural Utilities 
     Service of the Department of Agriculture, the Tennessee 
     Valley Authority, the Federal Energy Regulatory Commission, 
     and the Nuclear Regulatory Commission.


                            HOUSE RESOLUTION

       The resolution ca11s for a total of $3.1 billion in budget 
     authority and $2.0 billion in outlays in fiscal year 2006, 
     and $11.8 billion in budget authority and $5 billion in 
     outlays over 5 years. The resolution could accommodate a 
     comprehensive energy bill. This is reflected in the 
     allocation to the Committee

[[Page 8285]]

     on Energy and Commerce, which is free to determine its own 
     policies within the a11ocation limits. For a complete summary 
     of the House-passed function levels, including the 
     discretionary and mandatory spending breakdown, see H. Rept. 
     109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $3.2 billion in BA 
     and $2.1 billion in outlays in fiscal year 2006, and $13.8 
     billion in BA and $7.0 billion in outlays over 5 years.


                          conference agreement

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels for both the budget year and the outyears are 
     the President's recommended levels, as re-estimated by CBO. 
     The mandatory spending figures reflect the CBO baseline, 
     adjusted to accommodate the spending components of a 
     comprehensive energy bill. The conference agreement also 
     includes a reserve fund in the Senate for such legislation. 
     In addition, the agreement includes mandatory levels in 
     Function 920 (Allowances). These levels reflect the sum of 
     the reconciliation savings targets set for authorizing 
     committees to achieve in spending programs under their 
     jurisdictions. How these changes would affect programs in 
     various functions will depend on the actual reconciliation 
     legislation that is enacted.

            Natural Resources and Environment: Function 300


                            FUNCTION SUMMARY

       The Natural Resources and Environment function consists of 
     water resources, conservation, land management, pollution 
     control and abatement, and recreational resources. Major 
     departments and agencies in this function are the Department 
     of the Interior, including the National Park Service, the 
     Bureau of Land Management, the Bureau of Reclamation, and the 
     Fish and Wildlife Service; conservation-oriented and land 
     management agencies within the Department of Agriculture 
     including the Forest Service; the National Oceanic and 
     Atmospheric Administration in the Department of Commerce; the 
     Army Corps of Engineers; and the Environmental Protection 
     Agency.


                            HOUSE RESOLUTION

       The resolution calls for a total of $30.5 billion in budget 
     authority and $32.3 billion in outlays in fiscal year 2006, 
     and $155.3 billion in budget authority and $161.6 billion in 
     outlays over 5 years. The discretionary level in this 
     function for fiscal year 2006 is the President's recommended 
     level, as re-estimated by the Congressional Budget Office, 
     with an increase to accommodate additional budget authority. 
     For a complete summary of the House-passed function levels, 
     including the discretionary and mandatory spending breakdown, 
     see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $30.0 billion in 
     BA and $32.0 billion in outlays in fiscal year 2006, and 
     $152.5 billion in BA and $159.0 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels for both the budget year and the outyears are 
     the President's recommended levels, as re-estimated by CBO. 
     Mandatory spending reflects the CBO baseline levels, with an 
     adjustment to accommodate several small environmental and 
     resource-related initiatives. In addition, the conference 
     agreement includes mandatory levels in Function 920 
     (Allowances). These levels reflect the sum of the 
     reconciliation savings targets set for authorizing committees 
     to achieve in spending programs under their jurisdictions. 
     How these changes would affect programs in various functions 
     will depend on the actual reconciliation legislation that is 
     enacted.

                       Agriculture: Function 350


                            FUNCTION SUMMARY

       The Agriculture function includes funds for direct 
     assistance and loans to food and fiber producers, export 
     assistance, market information, inspection services, and 
     agricultural research. Farm policy is driven by the Farm 
     Security and Rural Investment Act of 2002, which provides 
     producers with continued planting flexibility while 
     protecting them against unique uncertainties such as poor 
     weather conditions and unfavorable market conditions.
       Homeland security spending in this function includes 
     funding for the Department of Agriculture and the Department 
     of Homeland Security (including the Agriculture and Plant 
     Health Inspection Service).


                            HOUSE RESOLUTION

       The resolution calls for $29.5 billion in budget authority 
     and $28.5 billion in outlays in fiscal year 2006, and $133.1 
     billion in budget authority and $128.3 billion in outlays 
     over 5 years. For a complete summary of the House-passed 
     function levels, including the discretionary and mandatory 
     spending breakdown, see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $29.1 billion in 
     BA and $28.1 billion in outlays in fiscal year 2006, and 
     $129.3 billion in BA and $124.4 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels for both the budget year and the outyears are 
     the President's recommended levels, as re-estimated by CBO. 
     Mandatory spending reflects the CBO baseline levels. In 
     addition, the conference agreement includes mandatory levels 
     in Function 920 (Allowances). These levels reflect the sum of 
     the reconciliation savings targets set for authorizing 
     committees to achieve in spending programs under their 
     jurisdictions. How these changes would affect programs in 
     various functions will depend on the actual reconciliation 
     legislation that is enacted.

               Commerce and Housing Credit: Function 370


                            FUNCTION SUMMARY

       The Commerce and Housing Credit function includes four 
     components: mortgage credit (usually negative budget 
     authority because receipts tend to exceed the losses from 
     defaulted mortgages); the Postal Service (mostly off budget); 
     deposit insurance; and other advancement of commerce (the 
     majority of the discretionary and mandatory spending in this 
     function).
       The mortgage credit component of this function includes 
     housing assistance through the Federal Housing 
     Administration, the Government National Mortgage Association 
     [Ginnie Mae], and rural housing programs of the Department of 
     Agriculture. The function also includes net postal service 
     spending and spending for deposit insurance activities of 
     banks, thrifts, and credit unions. Finally, most, but not 
     all, of the Commerce Department is provided for in this 
     function, including the International Trade Administration, 
     the Bureau of Economic Analysis, the Patent and Trademark 
     Office, the National Institute of Standards and Technology, 
     the National Telecommunications and Information 
     Administration, and the Bureau of the Census; as well as 
     independent agencies such as the Securities and Exchange 
     Commission, the Commodity Futures Trading Commission, the 
     Federal Trade Commission, the Federal Communications 
     Commission, and the majority of the Small Business 
     Administration.
       More than two-thirds of the spending in Function 370 is out 
     of the FCC's Universal Service Fund. This fund collects 
     receipts (which appear in roughly offsetting amounts on the 
     revenue side of the budget) raised by certain 
     telecommunications operators from charges on their customers 
     to promote service to low-income users and high-cost areas, 
     as well as new services.


                            HOUSE RESOLUTION

       For on-budget amounts, the resolution calls for $10.8 
     billion in budget authority and $5.6 billion in outlays in 
     fiscal year 2006, and $56.1 billion in budget authority and 
     $24.9 billion in outlays over 5 years. For a complete summary 
     of the House-passed function levels, including the 
     discretionary and mandatory spending breakdown, see H. Rept. 
     109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $5.8 billion in BA 
     and $0.5 billion in outlays in fiscal year 2006, and $33.4 
     billion in BA and $3.2 billion in outlays over 5 years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels for both the budget year and the outyears are 
     the President's recommended levels, as re-estimated by CBO. 
     Mandatory spending reflects the CBO baseline levels. In 
     addition, the conference agreement includes mandatory levels 
     in Function 920 (Allowances). These levels reflect the sum of 
     the reconciliation savings targets set for authorizing 
     committees to achieve in spending programs under their 
     jurisdictions. How these changes would affect programs in 
     various functions will depend on the actual reconciliation 
     legislation that is enacted.

                      Transportation: Function 400


                            FUNCTION SUMMARY

       The Transportation function includes ground, air, water and 
     other transportation funding. The major agencies and programs 
     in this function include the Department of Transportation 
     (including the Federal Aviation Administration; the Federal 
     Highway Administration; the Federal Transit Administration; 
     highway, motor carrier, rail and pipeline safety programs; 
     and the Maritime Administration), the aeronautical activities 
     of the National Aeronautics and Space Administration, and the 
     National Railroad Passenger Corporation.
       Homeland security spending in this function includes 
     funding for the Department of Homeland Security (including 
     the Federal Air Marshals, the Transportation Security 
     Administration and the U.S. Coast Guard) and the Department 
     of Transportation.


                            HOUSE RESOLUTION

       The resolution calls for $70.0 billion in budget authority 
     and $70.4 billion in outlays in fiscal year 2006, and $353.8 
     billion in budget authority and $369.8 billion in outlays 
     over 5 years. The mandatory component consists of CBO 
     baseline levels adjusted to accommodate the anticipated 
     reauthorization of TEA-21. For a complete summary of the 
     House-passed function levels, including the discretionary and 
     mandatory spending breakdown, see H. Rept. 109-17.

[[Page 8286]]




                            SENATE AMENDMENT

       The Senate amendment reflects a total of $69.7 billion in 
     BA and $69.8 billion in outlays in fiscal year 2006, and 
     $379.6 billion in BA and $368.6 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. The conference 
     agreement reflects funding levels for fiscal years 2005-09 
     consistent with a $284-billion surface transportation bill. 
     The agreement also includes a contingency procedure should 
     additional resources be made available to the Highway Trust 
     Fund. In addition, the conference agreement includes 
     mandatory levels in Function 920 (Allowances). These levels 
     reflect the sum of the reconciliation savings targets set for 
     authorizing committees to achieve in spending programs under 
     their jurisdictions. How these changes would affect programs 
     in various functions will depend on the actual reconciliation 
     legislation that is enacted.

            Community and Regional Development: Function 450


                            FUNCTION SUMMARY

       The Community and Regional Development function includes 
     programs that provide Federal funding for economic and 
     community development in both urban and rural areas, 
     including: Community Development Block Grants [CDBGs]; the 
     non-power activities of the Tennessee Valley Authority; the 
     non-roads activities of the Appalachian Regional Commission; 
     the Economic Development Administration [EDA]; and partial 
     funding for the Bureau of Indian Affairs.
       Homeland Security spending in this function includes the 
     State and Local Government grant programs of the Department 
     of Homeland Security.


                            HOUSE RESOLUTION

       The resolution calls for a total of $14.2 billion in budget 
     authority [BA] and $18.5 billion in outlays in fiscal year 
     2006, and $71.5 billion in BA and $80.2 billion in outlays 
     over 5 years. The discretionary component of these amounts 
     was increased in fiscal year 2006 to accommodate higher 
     appropriations for programs such as the Community Development 
     Block Grant. For a complete summary of the House-passed 
     function levels, including the discretionary and mandatory 
     spending breakdown, see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $15.2 billion in 
     BA and $18.4 billion in outlays in fiscal year 2006, and 
     $68.4 billion in BA and $78.4 billion in outlays over 5 
     years, including an amendment adopted on the Senate floor to 
     increase the levels in this function by $1.5 billion above 
     the President's request for the CDBG program, and other 
     related economic and community development programs, in 2006.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. The discretionary 
     levels for both the budget year and the outyears are the 
     President's recommended levels, as re-estimated by CBO, with 
     the following adjustment: the levels are $1.5 billion higher 
     than the President's request to maintain economic and 
     community development programs such as CDBG at 2005 levels. 
     Mandatory spending levels reflect the CBO baseline. In 
     addition, the conference agreement includes mandatory levels 
     in Function 920 (Allowances). These levels reflect the sum of 
     the reconciliation savings targets set for authorizing 
     committees to achieve in spending programs under their 
     jurisdictions. How these changes would affect programs in 
     various functions will depend on the actual reconciliation 
     legislation that is enacted.

   Education, Training, Employment and Social Services: Function 500


                            FUNCTION SUMMARY

       The function titled Education, Training, Employment, and 
     Social Services primarily covers Federal spending within the 
     Departments of Education, Labor, and Health and Human 
     Services for programs that directly provide--or assist States 
     and localities in providing--services to young people and 
     adults. Its activities provide developmental services to low-
     income children; support programs for disadvantaged and other 
     elementary and secondary school students; make grants and 
     loans to post secondary students; and maintain job-training 
     and employment services.


                            HOUSE RESOLUTION

       The resolution calls for $92.0 billion in budget authority 
     and $91.0 billion in outlays in fiscal year 2006, and $451.7 
     billion in budget authority and $446.7 billion in outlays 
     over 5 years. For a complete summary of the House-passed 
     function levels, including the discretionary and mandatory 
     spending breakdown, see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $98.4 billion in 
     BA and $88.5 billion in outlays for fiscal year 2006, and 
     $460.0 billion in BA and $450.3 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels for both the budget year and the outyears 
     reflect the President's recommended levels, as re-estimated 
     by CBO, with the following adjustments: the discretionary 
     levels are increased by $1.04 billion in BA in fiscal year 
     2006 for Department of Education programs. These increases 
     include $0.6 billion above the President's request to 
     maintain funding for Community Development Block Grants at 
     2005 levels, and an additional $0.4 billion to accommodate a 
     $100 increase in Pell Grants in 2006. Mandatory spending 
     levels reflect the CBO baseline, adjusted to support state-
     based abstinence grants. The conference agreement also 
     includes a reserve fund to accommodate potential legislation 
     addressing the shortfall in BA in the Pell Grant Program, and 
     procedures modifying the budgetary treatment of Pell Grant 
     funding. In addition, the conference agreement includes 
     mandatory levels in Function 920 (Allowances). These levels 
     reflect the sum of the reconciliation savings targets set for 
     authorizing committees to achieve in spending programs under 
     their jurisdictions. How these changes would affect programs 
     in various functions will depend on the actual reconciliation 
     legislation that is enacted.
       Although the Congress strongly supports the Federal student 
     loan programs, it is increasingly concerned that the subsidy 
     estimates for the Ford Direct Loan Program do not reflect the 
     program's true cost to the Federal Government. For example, 
     the President's 2006 budget reveals that although the program 
     was expected to result in a net savings of $2 billion from 
     its inception through fiscal year 2004, the actual experience 
     is that the program resulted in a net cost to taxpayers of $3 
     billion over the same period. This represents a $5-billion 
     underestimate of the program's actual cost to taxpayers over 
     roughly 10 years. Accordingly, the Congress supports the 
     administration's continuing efforts to direct the Department 
     of Education to refine and improve its cost estimating 
     techniques for this program.
       The Congress believes it is important for estimates to be 
     corrected for all known deficiencies so that the decision 
     makers have sufficient information to compare the cost to 
     taxpayers of competing policy options, and large-scale 
     structural reform proposals, in the student loan programs.

                          Health: Function 550


                            FUNCTION SUMMARY

       This function consists of health care services, including 
     Medicaid, the Nation's major program covering medical and 
     long-term care costs for low-income persons; the State 
     Children's Health Insurance Program [SCHIP], health research 
     and training, including the National Institutes of Health 
     [NIH] and substance abuse prevention and treatment; and 
     consumer and occupational health and safety, including the 
     Occupational Safety and Health Administration. Medicaid 
     represents 71 percent of the spending in this function.
       Homeland security activities and agencies in this category 
     include Project Bioshield, the National Institutes of Health, 
     the National Institute of Allergy and Infectious Diseases, 
     the Food Safety and Inspection Service, and the Food and Drug 
     Administration.


                            HOUSE RESOLUTION

       The resolution calls for a total of $262.2 billion in BA 
     and $262.5 billion in outlays in fiscal year 2006, and $1,486 
     billion in BA and $1,480.3 billion in outlays over 5 years. 
     For a complete summary of the House-passed function levels, 
     including the discretionary and mandatory spending breakdown, 
     see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $264.0 billion in 
     BA and $264.3 billion in outlays in fiscal year 2006, and 
     $1,489.3 billion in BA and $1,483.2 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels for both the budget year and the outyears 
     reflect the President's recommended levels, as re-estimated 
     by CBO. Mandatory spending levels reflect the CBO baseline, 
     and the conference agreement contains reserve funds for the 
     Family Opportunity Act and for health coverage for the 
     uninsured. The agreement also contains reserve funds in the 
     Senate for importation of prescription drugs, for the 
     restoration of funds for the State Children's Health 
     Insurance Program, and for health information technology and 
     pay-for-performance. In addition, the conference agreement 
     includes mandatory levels in Function 920 (Allowances). These 
     levels reflect the sum of the reconciliation savings targets 
     set for authorizing committees to achieve in spending 
     programs under their jurisdictions. How these changes would 
     affect programs in various functions will depend on the 
     actual reconciliation legislation that is enacted. No savings 
     are assumed in fiscal year 2006 in the Medicaid Program.

                         Medicare: Function 570


                            FUNCTION SUMMARY

       This function consists entirely of the Medicare Program. It 
     reflects the Medicare Part

[[Page 8287]]

     A Hospital Insurance [HI] Program, Part B Supplementary 
     Medical Insurance [SMI] Program, Part C Medicare Advantage 
     Program, and Part D Prescription Drug Benefit, as well as 
     premiums paid by qualified aged and disabled beneficiaries. 
     On 8 December 2003, Congress and the President enacted the 
     Medicare Prescription Drug, Improvement, and Modernization 
     Act [MMA]. MMA changed Medicare Part C from the 
     Medicare+Choice Program to the Medicare Advantage Program and 
     added the Part D Prescription Drug Benefit to the Medicare 
     Program.


                            HOUSE RESOLUTION

       The resolution calls for $331.2 billion in budget authority 
     and $330.9 billion in outlays in fiscal year 2006, and 
     $1,966.7 billion in budget authority and $1,966.7 billion in 
     outlays over 5 years. For a complete summary of the House-
     passed function levels, including the discretionary and 
     mandatory spending breakdown, see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $331.2 billion in 
     BA and $331.0 billion in outlays in fiscal year 2006, and 
     $1,966.9 billion in BA and $1,967.0 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. The discretionary 
     spending levels reflect the President's recommended levels, 
     as re-estimated by CBO. The mandatory figures reflect CBO 
     baseline levels.

                     Income Security: Function 600


                            FUNCTION SUMMARY

       The Income Security function includes most of the Federal 
     Government's income support programs. These include: general 
     retirement and disability insurance (excluding Social 
     Security)--mainly through the Pension Benefit Guaranty 
     Corporation [PBGC]--and benefits to railroad retirees. Other 
     components are Federal employee retirement and disability 
     benefits (including military retirees); unemployment 
     compensation; low-income housing assistance, including 
     section 8 housing; food and nutrition assistance, including 
     food stamps and school lunch subsidies; and other income 
     security programs.
       This last category includes: Temporary Assistance to Needy 
     Families [TANF], the Government's principal welfare program; 
     Supplemental Security Income; spending for the refundable 
     portion of the Earned Income Credit; and the Low Income Home 
     Energy Assistance Program.


                            HOUSE RESOLUTION

       The resolution calls for $347.2 billion in budget authority 
     and $354.1 billion in outlays in fiscal year 2006, and 
     $1,823.1 billion in budget authority and $1,850.0 billion in 
     outlays over 5 years. The discretionary component for fiscal 
     year 2006 is the President's recommended level, as re-
     estimated by the Congressional Budget Office, reduced by $0.1 
     billion to accommodate increased funding for community and 
     regional development programs in Function 450. For a complete 
     summary of the House-passed function levels, including the 
     discretionary and mandatory spending breakdown, see H. Rept. 
     109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $347.4 billion in 
     BA and $353.4 billion in outlays in fiscal year 2006, and 
     $1,824.9 billion in BA and $1,846.4 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels, for both the budget year and the outyears, 
     reflect the President's recommended levels, as re-estimated 
     by CBO. Mandatory spending reflects the CBO baseline levels, 
     adjusted to accommodate reauthorization of Temporary 
     Assistance for Needy Families. In addition, the conference 
     agreement includes mandatory levels in Function 920 
     (Allowances). These levels reflect the sum of the 
     reconciliation savings targets set for authorizing committees 
     to achieve in spending programs under their jurisdictions. 
     How these changes would affect programs in various functions 
     will depend on the actual reconciliation legislation that is 
     enacted.

                     Social Security: Function 650


                            FUNCTION SUMMARY

       This function consists of the Social Security Program, or 
     Old Age, Survivors, and Disability Insurance [OASDI]. It is 
     the largest budget function in terms of outlays, and provides 
     funds for the Government's largest entitlement program. Under 
     provisions of the Congressional Budget Act and the Budget 
     Enforcement Act, Social Security trust funds are considered 
     to be off budget. But a small portion of spending within 
     Function 650 ( including general fund transfers of taxes paid 
     on Social Security benefits ( is on budget. The presentations 
     below, therefore, refer to only the on-budget portion of 
     Function 650.


                            HOUSE RESOLUTION

       The resolution calls for $15.9 billion in on-budget budget 
     authority and $15.9 billion in outlays in fiscal year 2006, 
     and $99.1 billion in budget authority and $99.1 billion in 
     outlays over 5 years. (The corresponding unified budget 
     totals would be $547.0 billion and $544.9 billion in outlays 
     in fiscal year 2006, and $3,020.2 billion in BA and $3,007.4 
     billion in outlays over 5 years.) For a complete summary of 
     the House-passed function levels, including the discretionary 
     and mandatory spending breakdown, see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a unified total of $546.8 
     billion in BA and $544.8 billion in outlays in fiscal year 
     2006, and $3,021.3 billion in BA and $3,008.4 billion in 
     outlays over 5 years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. The unified 
     discretionary spending levels, for both the budget year and 
     the outyears, are at the CBO baseline levels. The mandatory 
     spending figures reflect the CBO baseline levels.

              Veterans Benefits and Services: Function 700


                            FUNCTION SUMMARY

       This function includes funding for the Department of 
     Veterans Affairs [VA], which provides benefits to veterans 
     who meet various eligibility rules. Benefits range from 
     income security for veterans, principally disability 
     compensation and pensions; veterans education, training, and 
     rehabilitation services; hospital and medical care for 
     veterans; and other veterans' benefits and services, such as 
     home loan guarantees. There are about 24.8 million veterans.


                            HOUSE RESOLUTION

       The resolution calls for $68.9 billion in budget authority 
     and $68.1 billion in outlays in fiscal year 2006, and $344.7 
     billion in budget authority and $342.9 billion in outlays 
     over 5 years. The discretionary component reflects an 
     increase over the President's level, as re-estimated by the 
     Congressional Budget Office. Specifically, the Chairman's 
     Mark increased budget authority over the President's 
     recommended levels by $68 million in fiscal year 2006 and 
     $609 million over the period 2006-10. In addition, During 
     markup, the Budget Committee adopted an amendment by Mr. 
     Bradley further increasing budget authority by $229 million 
     for fiscal year 2006 and $1.145 billion over the period 2006-
     10. As a result, the reported resolution includes an increase 
     in total veterans budget authority of $297 million in fiscal 
     year 2006 over the President's request.
       For a complete summary of the House-passed function levels, 
     including the discretionary and mandatory spending breakdown, 
     see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $69.0 billion in 
     BA and $68.4 billion in outlays in fiscal year 2006, and 
     $344.7 billion in BA and $343.0 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. The discretionary 
     spending levels, for both the budget year and the outyears, 
     reflect the President's recommended levels, as re-estimated 
     by CBO, with the following adjustments: the levels are 
     increased to provide for an additional $410 million in BA 
     Veterans' Medical Care in fiscal year 2006.
       Mandatory spending figures reflect the CBO baseline levels.

                Administration of Justice: Function 750


                            FUNCTION SUMMARY

       This function supports the majority of Federal justice and 
     law enforcement programs and activities. This includes 
     funding for the Department of Justice, as well as the 
     financial law enforcement activities of the Department of the 
     Treasury, Federal courts and prisons, and criminal justice 
     assistance to State and local governments.
       Homeland security spending in this function includes 
     funding for the law enforcement and border protection 
     activities of the Department of Homeland Security and the 
     counterterrorism activities of the Department of Justice and 
     the Department of the Treasury.


                            HOUSE RESOLUTION

       The resolution calls for $40.8 billion in budget authority 
     and $42.3 billion in outlays in fiscal year 2006, and $209.7 
     billion in budget authority and $213 billion in outlays over 
     5 years. The discretionary component for fiscal year 2006 is 
     the President's recommended level, as re-estimated by the 
     Congressional Budget Office, with an adjustment for the 
     Federal Judiciary to grow at the rate of inflation. For a 
     complete summary of the House-passed function levels, 
     including the discretionary and mandatory spending breakdown, 
     see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $42.0 billion in 
     BA and $42.9 billion in outlays in fiscal year 2006, and 
     $213.0 billion in BA and $216.0 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels, for both the budget years and the outyears, 
     reflect the President's recommended levels, as re-estimated 
     by CBO. The conference agreement also contains a reserve fund 
     in the Senate for the Asbestos Injury Trust Fund. Mandatory 
     spending figures reflect the CBO baseline. In

[[Page 8288]]

     addition, the conference agreement includes mandatory levels 
     in Function 920 (Allowances). These levels reflect the sum of 
     the reconciliation savings targets set for authorizing 
     committees to achieve in spending programs under their 
     jurisdictions. How these changes would affect programs in 
     various functions will depend on the actual reconciliation 
     legislation that is enacted.

                    General Government: Function 800


                            FUNCTION SUMMARY

       General Government consists of the activities of the 
     Legislative Branch; the Executive Office of the President; 
     general tax collection and fiscal operations of the 
     Department of Treasury (including the Internal Revenue 
     Service); the Office of Personnel Management, and the 
     property and personnel costs of the General Services 
     Administration; general purpose fiscal assistance to States, 
     localities, the District of Columbia, and U.S. territories; 
     and other general Government activities.


                            HOUSE RESOLUTION

       The resolution calls for $18 billion in budget authority 
     and $18.3 billion in outlays in fiscal year 2006, and $88.5 
     billion in budget authority and $88.5 billion in outlays over 
     5 years. For a complete summary of the House-passed function 
     levels, including the discretionary and mandatory spending 
     breakdown, see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $18.1 billion in 
     BA and $18.4 billion in outlays in fiscal year 2006, and 
     $91.8 billion in BA and $91.6 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. Discretionary 
     spending levels, for both the budget year and the outyears, 
     reflect the President's recommended levels, as re-estimated 
     by CBO, with adjustments to accommodate changes in Function 
     500, Education, Labor, Employment, and Social Services; and 
     in Function 650, Social Security. Mandatory spending figures 
     reflect the CBO baseline, adjusted for several 
     intergovernmental provisions. The conference agreement also 
     contains a reserve fund in the House of Representatives for 
     Federal property disposal. In addition, the conference 
     agreement includes mandatory levels in Function 920 
     (Allowances). These levels reflect the sum of the 
     reconciliation savings targets set for authorizing committees 
     to achieve in spending programs under their jurisdictions. 
     How these changes would affect programs in various functions 
     will depend on the actual reconciliation legislation that is 
     enacted.

                       Net Interest: Function 900


                            FUNCTION SUMMARY

       This function includes net interest, which is the interest 
     paid on the Federal Government's borrowing less the interest 
     received by the Federal Government from trust fund 
     investments and loans to the public. It is a mandatory 
     payment, with no discretionary components.


                            HOUSE RESOLUTION

       The resolution calls for $214.0 billion in unified budget 
     authority and outlays in fiscal year 2006, and $1,357.9 
     billion in budget authority and outlays over 5 years. For a 
     complete summary of the House-passed function levels, see H. 
     Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of $214.0 billion in 
     BA and $214.0 billion in outlays in fiscal year 2006, and 
     $1,365.5 billion in BA and $1,365.5 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. No mandatory 
     assumptions are reflected in this function.

                        Allowances: Function 920


                            Function Summary

       The Allowances function is used for planning purposes to 
     address the budgetary effects of proposals or assumptions 
     that cross various other budget functions. Once such changes 
     are enacted, the budgetary effects are distributed to the 
     appropriate budget functions.


                            HOUSE RESOLUTION

       The function totals are $47.903 billion in budget authority 
     and $24.359 billion in outlays in fiscal year 2006; and 
     $9.963 billion in budget authority and -$16.969 billion in 
     outlays for 2006-10. The figures include $50.0 billion in 
     discretionary budget authority and $32.0 billion in outlays 
     in fiscal year 2006 toward likely costs for continuing 
     military operations in Afghanistan and Iraq. The figures also 
     include proposed mandatory savings of $2.097 in budget 
     authority and $7.641 in outlays in fiscal year 2006, and 
     $40.037 billion in budget authority and $66.969 billion in 
     outlays for 2006-10. For a complete summary of the House-
     passed function totals, including the discretionary and 
     mandatory spending breakdown, see H. Rept. 109-17.


                            Senate Amendment

       The Senate amendment reflects a total of -$6.1 billion in 
     BA and -$3.2 billion in outlays in fiscal year 2006, and 
     -$6.3 billion in BA and -$6.1 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The agreement calls for a total of $48.5 billion in budget 
     authority and $60.9 billion in outlays in fiscal year 2006, 
     and $19.1 billion in BA and $64.5 billion in outlays over 5 
     years. The discretionary levels are $50.0 billion in BA and 
     $62.4 billion in outlays in fiscal year 2006, and $50.0 
     billion in BA and $99.1 billion in outlays over 5 years. 
     Mandatory amounts are -$1.5 billion in BA and -$1.5 billion 
     in outlays in fiscal year 2006, and $30.9 billion in BA and 
     $34.7 billion in outlays over 5 years.
       These figures are derived as follows:
       The conference report calls for $50.0 billion in 
     discretionary budget authority and $62.4 billion in outlays 
     in fiscal year 2006. This is to anticipate the likelihood of 
     supplemental appropriations for continuing military 
     operations in Afghanistan and Iraq. It is an estimate for 
     anticipated annual costs. It is an attempt not to 
     predetermine the scope or intensity of operations, troop 
     levels, or which weapons and supplies the Department of 
     Defense will need, but rather to make the budget reflect a 
     likely future expenditure. Over 5 years, outlays from the 
     2006 budget authority total $50.0 billion.
       The conference agreement also adjusts levels for the 
     current year, fiscal year 2005, to accommodate $81.9 billion 
     in supplemental funding for military operations in Iraq and 
     Afghanistan.
       The function also reflects a net reduction of $34.7 billion 
     in outlays over 5 years in projected mandatory spending 
     called for in the conference report. The budget recognizes 
     the significance and rapid growth of mandatory spending--
     spending not subject to annual appropriations--which now 
     consumes about 55 percent of total Federal spending 
     (excluding interest). Total mandatory spending (including 
     interest) is growing at a rate of about 6.4 percent per year. 
     At its current rate, net non-interest mandatory spending will 
     consume 61 percent of total spending in just 10 years--
     increasingly crowding out other priorities. Spending control 
     depends on controlling the rate of mandatory spending growth. 
     Therefore, to slow the growth of total mandatory spending, 
     the conference agreement includes reconciliation directives 
     to a range of authorizing committees (see the Reconciliation 
     discussion in this report), the sum of which is reflected in 
     this function. The committees are free to legislate savings 
     provisions in any of the mandatory programs in their 
     jurisdictions, so long as they achieve their respective 
     reconciliation targets.

            Undistributed Offsetting Receipts: Function 950


                            FUNCTION SUMMARY

       This function consists of receipts to the Treasury. 
     Receipts recorded in this function are either intrabudgetary 
     (a payment from one Federal agency to another, such as agency 
     payments to the retirement trust funds) or proprietary (a 
     payment from the public for some kind of business transaction 
     with the Government). The main types of receipts recorded in 
     this function are: the payments Federal employees and 
     agencies make to employee retirement trust funds; payments 
     made by companies for the right to explore and produce oil 
     and gas on the Outer Continental Shelf, and payments by those 
     who bid for the right to buy or use public property or 
     resources, such as the electromagnetic spectrum. These 
     receipts are treated as negative spending.


                            HOUSE RESOLUTION

       The resolution calls for a total of -$67.1 billion in 
     unified budget authority and -$67.1 billion in outlays in 
     fiscal year 2006 (with the minus signs again indicating 
     receipts into the Treasury.) The function totals are -$375.7 
     billion in budget authority and -$376.4 billion in outlays 
     over 5 years. For a complete summary of the House-passed 
     function levels, including the discretionary and mandatory 
     spending breakdown, see H. Rept. 109-17.


                            SENATE AMENDMENT

       The Senate amendment reflects a total of -$67.1 billion in 
     BA and -$67.1 billion in outlays in fiscal year 2006, and 
     -$385.1 billion in BA and -$385.8 billion in outlays over 5 
     years.


                          CONFERENCE AGREEMENT

       The totals for this function appear in the budget 
     resolution conference agreement tables. The discretionary 
     levels, for both the budget year and the outyears, reflect 
     the President's recommended levels, as re-estimated by CBO. 
     Mandatory spending levels reflect the CBO baseline. In 
     addition, the conference agreement includes mandatory levels 
     in Function 920 (Allowances). These levels reflect the sum of 
     the reconciliation savings targets set for authorizing 
     committees to achieve in spending programs under their 
     jurisdictions. How these changes would affect programs in 
     various functions will depend on the actual reconciliation 
     legislation that is enacted.

[[Page 8289]]



                                   FISCAL YEAR 2006 BUDGET RESOLUTION CONFERENCE AGREEMENT TOTAL SPENDING AND REVENUES
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                2005        2006        2007        2008        2009        2010       2006-2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Summary
Total Spending:
    BA............................................................   2,479.210   2,562.363   2,642.332   2,771.425   2,893.177   3,008.522    13,877.819
    OT............................................................   2,454.699   2,577.400   2,644.200   2,750.392   2,872.905   2,995.181    13,840.078
  On-Budget:
    BA............................................................   2,078.456   2,144.384   2,211.308   2,324.327   2,428.613   2,524.958    11,633.590
    OT............................................................   2,056.006   2,161.420   2,215.361   2,305.908   2,411.288   2,514.745    11,608.722
  Off-Budget:
    BA............................................................     400.754     417.979     431.024     447.098     464.564     483.564     2,244.229
    OT............................................................     398.693     415.980     428.839     444.484     461.617     480.436     2,231.356
Revenues:
    Total.........................................................   2,057.133   2,194.669   2,331.038   2,495.962   2,634.527   2,784.259    12,440.455
    On-Budget.....................................................   1,483.658   1,589.892   1,693.246   1,824.274   1,928.678   2,043.916     9,080.006
    Off-Budget....................................................     573.475     604.777     637.792     671.688     705.849     740.343     3,360.449
Surplus/Deficit (-):
    Total.........................................................    -397.566    -382.731    -313.162    -254.430    -238.378    -210.922    -1,399.623
    On-Budget.....................................................    -572.348    -571.528    -522.115    -481.634    -428.610    -470.829    -2,528.716
    Off-Budget....................................................     174.782     188.797     208.953     227.204     244.232     259.907     1,129.093
Debt Held by the Public (end of year).............................       4,689       5,082       5,409       5,677       5,927       6,150            na
Debt Subject to Limit (end of year)...............................       7,962       8,645       9,284       9,890      10,500      11,105            na
 
                                                                       By Function
National Defense (050):
    BA............................................................     423.446     441.562     465.260     483.730     503.763     513.904     2,408.219
    OT............................................................     465.709     447.020     448.508     467.840     488.307     505.531     2,357.206
International Affairs (150):
    BA............................................................      28.413      30.913      34.338      34.700      34.739      34.430       169.120
    OT............................................................      31.620      32.962      31.804      31.322      31.313      31.033       158.434
General Science, Space, and Technology (250):
    BA............................................................      24.413      24.735      25.171      25.545      25.851      26.162       127.464
    OT............................................................      23.594      23.894      24.610      24.922      25.242      25.565       124.233
Energy (270):
    BA............................................................       2.564       3.247       2.837       2.920       2.531       2.229        13.764
    OT............................................................       0.794       2.127       1.687       1.026       1.127       1.018         6.985
Natural Resources and Environment (300):
    BA............................................................      32.504      30.021      30.389      30.458      31.212      30.754       152.834
    OT............................................................      31.163      32.016      31.622      31.938      32.182      31.763       159.521
Agriculture (350):
    BA............................................................      30.151      29.420      27.130      25.274      25.631      25.357       132.812
    OT............................................................      28.550      28.476      25.948      24.225      24.738      24.627       128.014
Commerce and Housing Credit (370):
    BA............................................................      13.004       6.172       4.874       6.440       6.867      10.465        34.818
    OT............................................................       7.502       0.962      -0.271       0.650      -0.032       2.293         3.602
  On-budget:
    BA............................................................      16.804      10.772      10.074      10.040      10.667      14.565        56.118
    OT............................................................      11.302       5.562       4.929       4.250       3.768       6.393        24.902
  Off-budget:
    BA............................................................      -3.800      -4.600      -5.200      -3.600      -3.800      -4.100       -21.300
    OT............................................................      -3.800      -4.600      -5.200      -3.600      -3.800      -4.100       -21.300
Transportation (400):
    BA............................................................      75.833      73.034      74.515      76.482      66.268      67.611       357.910
    OT............................................................      67.639      70.137      72.092      73.893      75.235      77.107       368.464
Community and Regional Development (450):
    BA............................................................      23.007      14.493      14.510      14.597      14.735      14.755        73.090
    OT............................................................      20.756      18.323      17.180      15.779      14.706      14.402        80.390
Education, Training, Employment and Social Services (500):
    BA............................................................      94.026      97.364      90.395      90.450      90.665      90.124       458.998
    OT............................................................      92.805      91.463      91.045      89.335      88.826      88.646       449.315
Health (550):
    BA............................................................     257.498     262.269     275.200     294.954     317.026     336.407     1,485.856
    OT............................................................     252.798     262.628     274.781     293.755     313.539     335.458     1,480.161
Medicare (570):
    BA............................................................     292.587     331.181     371.875     395.312     420.234     448.111     1,966.713
    OT............................................................     293.587     330.944     372.167     395.364     419.828     448.442     1,966.745
Income Security (600):
    BA............................................................     339.658     347.606     352.843     365.782     374.984     384.088     1,825.303
    OT............................................................     347.855     354.415     359.969     371.374     379.241     387.610     1,852.609
Social Security (650):
    BA............................................................     522.557     546.809     572.203     600.483     633.133     668.691     3,021.319
    OT............................................................     520.496     544.810     570.018     597.869     630.186     665.563     3,008.446
  On-budget:
    BA............................................................      15.849      15.991      17.804      19.868      21.843      24.129        99.635
    OT............................................................      15.849      15.991      17.804      19.868      21.843      24.129        99.635
  Off-budget:
    BA............................................................     506.708     530.818     554.399     580.615     611.290     644.562     2,921.684
    OT............................................................     504.647     528.819     552.214     578.001     608.343     641.434     2,908.811
Veterans Benefits and Services (700):
    BA............................................................      69.448      68.994      66.434      69.561      70.074      70.172       345.235
    OT............................................................      68.873      68.365      66.168      69.387      69.791      69.900       343.611
Administration of Justice (750):
    BA............................................................      39.731      40.984      41.531      42.172      42.743      43.001       210.431
    OT............................................................      39.440      42.382      42.593      42.791      42.920      42.944       213.630
General Government (800):
    BA............................................................      16.765      17.909      17.829      17.285      17.140      16.733        86.896
    OT............................................................      17.673      18.398      17.758      17.289      16.956      16.580        86.981
Net Interest (900):
    BA............................................................     176.982     214.274     254.812     281.847     299.135     313.567     1,363.635
    OT............................................................     176.982     214.274     254.812     281.847     299.135     313.567     1,363.635
  On-budget:
    BA............................................................     267.982     310.774     360.512     398.347     427.725     455.167     1,952.535
    OT............................................................     267.982     310.774     360.512     398.347     427.725     455.167     1,952.535
  Off-budget:
    BA............................................................     -91.000     -96.500    -105.700    -116.500    -128.600    -141.600      -588.900
    OT............................................................     -91.000     -96.500    -105.700    -116.500    -128.600    -141.600      -588.900
Allowances (920):
    BA............................................................      81.881      48.477      -4.076      -7.670      -8.352      -9.294        19.085
    OT............................................................      32.121      60.905      18.572      -0.505      -5.758      -8.748        64.466
Undistributed Offsetting Receipts (950):
    BA............................................................     -65.258     -67.101     -75.738     -78.897     -75.202     -78.745      -375.683
    OT............................................................     -65.258     -67.101     -76.863     -79.709     -74.577     -78.120      -376.370
  On-budget:
    BA............................................................     -54.104     -55.362     -63.263     -65.480     -60.876     -63.447      -308.428
    OT............................................................     -54.104     -55.362     -64.388     -66.292     -60.251     -62.822      -309.115
  Off-budget:
    BA............................................................     -11.154     -11.739     -12.475     -13.417     -14.326     -15.298       -67.255

[[Page 8290]]

 
    OT............................................................     -11.154     -11.739     -12.475     -13.417     -14.326     -15.298       -67.255
--------------------------------------------------------------------------------------------------------------------------------------------------------


                 FISCAL YEAR 2006 BUDGET RESOLUTION CONFERENCE AGREEMENTPDISCRETIONARY SPENDING
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
               Fiscal year                  2005      2006      2007      2008      2009      2010     2006-2010
----------------------------------------------------------------------------------------------------------------
                                                     Summary
Total Spending:
    BA..................................   921.917   893.020   866.038   887.005   910.515   920.227   4,476.805
    OT..................................   961.641   979.260   937.599   936.596   951.089   967.365   4,771.909
  Defense:
    BA..................................   421.642   438.973   462.597   481.043   500.969   511.018   2,394.600
    OT..................................   463.887   444.398   445.816   465.130   485.494   502.628   2,343.466
  Nondefense:
    BA..................................   500.275   454.047   403.441   405.962   409.546   409.209   2,082.205
    OT..................................   497.754   534.862   491.783   471.466   465.595   464.737   2,428.443
 
                                                   By Function
National Defense (050):
    BA..................................   421.642   438.973   462.597   481.043   500.969   511.018   2,394.600
    OT..................................   463.887   444.398   445.816   465.130   485.494   502.628   2,343.466
International Affairs (150):
    BA..................................    30.019    31.369    33.526    33.873    33.898    33.573     166.239
    OT..................................    36.182    35.794    34.392    33.868    33.882    33.620     171.556
General Science, Space, and Technology
 (250):
    BA..................................    24.295    24.605    25.058    25.426    25.732    26.042     126.863
    OT..................................    23.516    23.815    24.523    24.829    25.142    25.462     123.771
Energy (270):
    BA..................................     3.807     4.536     3.756     3.873     3.803     3.664      19.632
    OT..................................     3.785     4.742     4.150     3.864     3.841     3.740      20.337
Natural Resources and Environment (300):
    BA..................................    31.306    27.975    27.945    27.968    27.903    27.484     139.275
    OT..................................    31.035    30.339    29.296    28.954    28.658    27.988     145.235
Agriculture (350):
    BA..................................     5.725     5.365     5.663     5.705     5.717     5.661      28.111
    OT..................................     5.754     5.817     5.586     5.613     5.625     5.640      28.281
Commerce and Housing Credit (370):
    BA..................................     1.849     0.864     0.991     1.050     1.500     5.206       9.611
    OT..................................     1.543     1.099     1.332     1.066     1.273     4.123       8.893
  On-budget:
    BA..................................     1.849     0.864     0.991     1.050     1.500     5.206       9.611
    OT..................................     1.543     1.099     1.332     1.066     1.273     4.123       8.893
  Off-budget:
    BA..................................  ........  ........  ........  ........  ........  ........  ..........
    OT..................................  ........  ........  ........  ........  ........  ........  ..........
Transportation (400):
    BA..................................    25.305    21.607    21.668    22.075    22.469    23.805     111.624
    OT..................................    65.517    67.949    69.939    71.644    73.078    74.999     357.609
Community and Regional Development
 (450):
    BA..................................    22.676    14.009    14.365    14.532    14.671    14.688      72.265
    OT..................................    20.314    18.564    17.313    15.863    14.892    14.584      81.216
Education, Training, Employment and
 Social Services (500):
    BA..................................    79.556    79.139    76.214    76.173    76.023    75.218     382.767
    OT..................................    79.217    79.961    78.691    76.769    75.884    75.389     386.694
Health (550):
    BA..................................    54.368    50.912    50.268    50.558    52.862    50.265     254.865
    OT..................................    51.012    51.730    51.138    50.608    50.551    50.577     254.604
Medicare (570):
    BA..................................     4.000     5.061     4.987     4.991     4.975     4.895      24.909
    OT..................................     3.989     4.855     4.991     5.002     4.978     4.912      24.738
Income Security (600):
    BA..................................    46.056    47.256    46.436    46.465    46.319    45.630     232.106
    OT..................................    54.294    54.275    53.535    52.143    50.891    49.356     260.200
Social Security (650):
    BA..................................     4.426     4.576     4.710     4.853     5.001     5.152      24.292
    OT..................................     4.405     4.587     4.785     4.849     4.974     5.124      24.319
  On-budget:
    BA..................................  ........  ........  ........  ........  ........  ........  ..........
    OT..................................  ........  ........  ........  ........  ........  ........  ..........
  Off-budget:
    BA..................................     4.426     4.576     4.710     4.853     5.001     5.152      24.292
    OT..................................     4.405     4.587     4.785     4.849     4.974     5.124      24.319
Veterans Benefits and Services (700):
    BA..................................    30.861    31.851    30.957    30.893    30.691    30.068     154.460
    OT..................................    30.327    31.252    30.775    30.822    30.526    29.922     153.297
Administration of Justice (750):
    BA..................................    38.733    38.848    40.758    41.494    42.151    42.502     205.753
    OT..................................    38.363    41.076    41.295    41.837    42.378    42.501     209.087
General Government (800):
    BA..................................    15.412    16.085    16.149    16.042    15.839    15.363      79.478
    OT..................................    16.380    16.594    16.070    15.901    15.699    15.263      79.527
Allowances (920):
    BA..................................    81.881    50.000  ........  ........  ........  ........      50.000
    OT..................................    32.121    62.424    23.982     7.843     3.331     1.544      99.124
Undistributed Offsetting Receipts (950):
    BA..................................  ........    -0.011    -0.010    -0.009    -0.008    -0.007      -0.045
    OT..................................  ........    -0.011    -0.010    -0.009    -0.008    -0.007      -0.045
  On-budget:
    BA..................................  ........    -0.011    -0.010    -0.009    -0.008    -0.007      -0.045
    OT..................................  ........    -0.011    -0.010    -0.009    -0.008    -0.007      -0.045
  Off-budget:
    BA..................................  ........  ........  ........  ........  ........  ........  ..........
    OT..................................  ........  ........  ........  ........  ........  ........  ..........
----------------------------------------------------------------------------------------------------------------


[[Page 8291]]


                   FISCAL YEAR 2006 BUDGET RESOLUTION CONFERENCE AGREEMENTPMANDATORY SPENDING
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
         Fiscal year             2005        2006        2007        2008        2009        2010      2006-2010
----------------------------------------------------------------------------------------------------------------
                                                     Summary
Total Spending:
    BA......................   1,557.293   1,669.343   1,776.294   1,884.420   1,982.662   2,088.295   9,401.014
    OT......................   1,493.058   1,598.140   1,706.601   1,813.796   1,921.816   2,027.816   9,068.169
  On-Budget:
    BA......................   1,160.965   1,255.940   1,349.980   1,442.175   1,523.099   1,609.883   7,181.077
    OT......................   1,098.770   1,186.747   1,282.547   1,374.161   1,465.173   1,552.504   6,861.132
  Off-Budget:
    BA......................     396.328     413.403     426.314     442.245     459.563     478.412   2,219.937
    OT......................     394.288     411.393     424.054     439.635     456.643     475.312   2,207.037
 
                                                   By Function
National Defense (050):
    BA......................       1.804       2.589       2.663       2.687       2.794       2.886      13.619
    OT......................       1.822       2.622       2.692       2.710       2.813       2.903      13.740
International Affairs (150):
    BA......................      -1.606      -0.456       0.812       0.827       0.841       0.857       2.881
    OT......................      -4.562      -2.832      -2.588      -2.546      -2.569      -2.587     -13.122
General Science, Space, and
 Technology (250):
    BA......................       0.118       0.130       0.113       0.119       0.119       0.120       0.601
    OT......................       0.078       0.079       0.087       0.093       0.100       0.103       0.462
Energy (270):
    BA......................      -1.243      -1.289      -0.919      -0.953      -1.272      -1.435      -5.868
    OT......................      -2.991      -2.615      -2.463      -2.838      -2.714      -2.722     -13.352
Natural Resources and
 Environment (300):
    BA......................       1.198       2.046       2.444       2.490       3.309       3.270      13.559
    OT......................       0.128       1.677       2.326       2.984       3.524       3.775      14.286
Agriculture (350):
    BA......................      24.426      24.055      21.467      19.569      19.914      19.696     104.701
    OT......................      22.796      22.659      20.362      18.612      19.113      18.987      99.733
Commerce and Housing Credit
 (370):
    BA......................      11.155       5.308       3.883       5.390       5.367       5.259      25.207
    OT......................       5.959      -0.137      -1.603      -0.416      -1.305      -1.830      -5.291
  On-budget:
    BA......................      14.955       9.908       9.083       8.990       9.167       9.359      46.507
    OT......................       9.759       4.463       3.597       3.184       2.495       2.270      16.009
  Off-budget:
    BA......................      -3.800      -4.600      -5.200      -3.600      -3.800      -4.100     -21.300
    OT......................      -3.800      -4.600      -5.200      -3.600      -3.800      -4.100     -21.300
Transportation (400):
    BA......................      50.528      51.427      52.847      54.407      43.799      43.806     246.286
    OT......................       2.122       2.188       2.153       2.249       2.157       2.108      10.855
Community and Regional
 Development (450):
    BA......................       0.331       0.484       0.145       0.065       0.064       0.067       0.825
    OT......................       0.442      -0.241      -0.133      -0.084      -0.186      -0.182      -0.826
Education, Training,
 Employment and Social
 Services (500):
    BA......................      14.470      18.225      14.181      14.277      14.642      14.906      76.231
    OT......................      13.588      11.502      12.354      12.566      12.942      13.257      62.621
Health (550):
    BA......................     203.130     211.357     224.932     244.396     264.164     286.142   1,230.991
    OT......................     201.786     210.898     223.643     243.147     262.988     284.881   1,225.557
Medicare (570):
    BA......................     288.587     326.120     366.888     390.321     415.259     443.216   1,941.804
    OT......................     289.598     326.089     367.176     390.362     414.850     443.530   1,942.007
Income Security (600):
    BA......................     293.602     300.350     306.407     319.317     328.665     338.458   1,593.197
    OT......................     293.561     300.140     306.434     319.231     328.350     338.254   1,592.409
Social Security (650):
    BA......................     518.131     542.233     567.493     595.630     628.132     663.539   2,997.027
    OT......................     516.091     540.223     565.233     593.020     625.212     660.439   2,984.127
  On-budget:
    BA......................      15.849      15.991      17.804      19.868      21.843      24.129      99.635
    OT......................      15.849      15.991      17.804      19.868      21.843      24.129      99.635
  Off-budget:
    BA......................     502.282     526.242     549.689     575.762     606.289     639.410   2,897.392
    OT......................     500.242     524.232     547.429     573.152     603.369     636.310   2,884.492
Veterans Benefits and
 Services (700):
    BA......................      38.587      37.143      35.477      38.668      39.383      40.104     190.775
    OT......................      38.546      37.113      35.393      38.565      39.265      39.978     190.314
Administration of Justice
 (750):
    BA......................       0.998       2.136       0.773       0.678       0.592       0.499       4.678
    OT......................       1.077       1.306       1.298       0.954       0.542       0.443       4.543
General Government (800):
    BA......................       1.353       1.824       1.680       1.243       1.301       1.370       7.418
    OT......................       1.293       1.804       1.688       1.388       1.257       1.317       7.454
Net Interest (900):
    BA......................     176.982     214.274     254.812     281.847     299.135     313.567   1,363.635
    OT......................     176.982     214.274     254.812     281.847     299.135     313.567   1,363.635
  On-budget:
    BA......................     267.982     310.774     360.512     398.347     427.735     455.167   1,952.535
    OT......................     267.982     310.774     360.512     398.347     427.735     455.167   1,952.535
  Off-budget:
    BA......................     -91.000     -96.500    -105.700    -116.500    -128.600    -141.600    -588.900
    OT......................     -91.000     -96.500    -105.700    -116.500    -128.600    -141.600    -588.900
Allowances (920):
    BA......................  ..........      -1.523      -4.076      -7.670      -8.352      -9.294     -30.915
    OT......................  ..........      -1.519      -5.410      -8.348      -9.089     -10.292     -34.658
Undistributed Offsetting
 Receipts (950):
    BA......................     -65.258     -67.090     -75.728     -78.888     -75.194     -78.738    -375.638
    OT......................     -65.258     -67.090     -76.853     -79.700     -74.569     -78.113    -376.325
  On-budget:
    BA......................     -54.104     -55.351     -63.253     -65.471     -60.868     -63.440    -308.383
    OT......................     -54.104     -55.351     -64.378     -66.283     -60.243     -62.815    -309.070
  Off-budget:
    BA......................     -11.154     -11.739     -12.475     -13.417     -14.326     -15.298     -67.255
    OT......................     -11.154     -11.739     -12.475     -13.417     -14.326     -15.298     -67.255
----------------------------------------------------------------------------------------------------------------


[[Page 8292]]


                                  FISCAL YEAR 2006 BUDGET RESOLUTION AS PASSED BY THE HOUSE TOTAL SPENDING AND REVENUES
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                2005        2006        2007        2008        2009        2010       2006-2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Summary
Total Spending:
  BA..............................................................   2,471.111   2,553.527   2,630.115   2,761.537   2,894.637   3,010.943    13,850.759
  OT..............................................................   2,451.244   2,570.621   2,635.179   2,742.732   2,864.079   2,987.327    13,799.938
  On-Budget:
    BA............................................................   2,070.357   2,135.290   2,199.074   2,314.562   2,430.359   2,527.892    11,607.177
    OT............................................................   2,052.551   2,154.404   2,206.300   2,298.338   2,402.719   2,507.365    11,569.126
  Off-Budget:
    BA............................................................     400.754     418.237     431.041     446.975     464.278     483.051     2,243.582
    OT............................................................     398.693     416.217     428.879     444.394     461.360     479.962     2,230.812
Revenues:
  Total...........................................................   2,057.446   2,194.781   2,331.157   2,496.038   2,634.611   2,784.345    12,440.932
  On-Budget.......................................................   1,483.971   1,589.905   1,693.266   1,824.251   1,928.663   2,043.903     9,079.988
  Off-Budget......................................................     573.475     604.876     637.891     671.787     705.948     740.442     3,360.944
Surplus/Deficit (-):
  Total...........................................................    -393.798    -375.840    -304.022    -246.694    -229.468    -202.982    -1,359.006
  On-Budget.......................................................    -568.580    -564.499    -513.034    -474.087    -474.056    -463.462    -2,489.138
  Off-Budget......................................................     174.782     188.659     209.012     227.393     244.588     260.480     1,130.132
Debt Held by the Public (end of year).............................       4,685       5,071       5,389       5,649       5,891       6,105            na
Debt Subject to Limit (end of year)...............................       7,958       8,635       9,264       9,862      10,464      11,060            na
 
                                                                       By Function
National Defense (050):
  BA..............................................................     500.621     441.562     465.260     483.730     503.763     513.904     2,408.219
  OT..............................................................     497.196     475.603     460.673     471.003     489.220     505.908     2,402.407
International Affairs (150):
  BA..............................................................      32.085      31.718      34.835      35.197      35.237      34.928       171.915
  OT..............................................................      32.166      35.097      33.359      32.397      32.115      31.643       164.611
General Science, Space, and Technology (250):
  BA..............................................................      24.413      24.735      25.171      25.545      25.851      26.162       127.464
  OT..............................................................      23.594      23.894      24.610      24.922      25.242      25.565       124.233
Energy (270):
  BA..............................................................       2.564       3.147       2.362       2.445       2.056       1.754        11.764
  OT..............................................................       0.794       2.027       1.212       0.551       0.652       0.543         4.985
Natural Resources and Environment (300):
  BA..............................................................      32.527      30.513      30.883      30.952      31.706      31.248       155.302
  OT..............................................................      31.168      32.276      32.046      32.402      32.663      32.254       161.641
Agriculture (350):
  BA..............................................................      30.151      29.480      27.190      25.334      25.691      25.417       133.112
  OT..............................................................      28.550      28.507      25.999      24.281      24.796      24.687       128.270
Commerce and Housing Credit (370):
  BA..............................................................      13.004       6.172       4.874       6.440       6.867      10.465        34.818
  OT..............................................................       7.502       0.962      -0.271       0.650      -0.032       2.293         3.602
  On-Budget:
    BA............................................................      16.804      10.772      10.074      10.040      10.667      14.565        56.118
    OT............................................................      11.302       5.562       4.929       4.250       3.768       6.393        24.902
  Off-Budget:
    BA............................................................      -3.800      -4.600      -5.200      -3.600      -3.800      -4.100       -21.300
    OT............................................................      -3.800      -4.600      -5.200      -3.600      -3.800      -4.100       -21.300
Transportation (400):
  BA..............................................................      72.506      70.007      70.130      70.501      70.911      72.254       353.803
  OT..............................................................      67.703      70.393      72.421      74.167      75.500      77.356       369.837
Community and Regional Development (450):
  BA..............................................................      23.007      14.179      14.196      14.283      14.421      14.441        71.520
  OT..............................................................      20.756      18.461      17.413      15.727      14.491      14.140        80.232
Education, Training, Employment and Social Services (500):
  BA..............................................................      94.001      91.978      89.925      89.980      90.194      89.652       451.729
  OT..............................................................      92.798      90.981      90.360      88.864      88.363      88.181       446.749
Health (550):
  BA..............................................................     257.469     262.151     275.220     295.010     317.113     336.523     1,486.017
  OT..............................................................     252.770     262.513     274.801     293.810     313.625     335.574     1,480.323
Medicare (570):
  BA..............................................................     292.587     331.181     371.875     395.312     420.234     448.111     1,966.713
  OT..............................................................     293.587     330.944     372.167     395.364     419.828     448.442     1,966.745
Income Security (600):
  BA..............................................................     339.057     347.218     352.416     365.343     374.529     383.590     1,823.096
  OT..............................................................     347.754     354.055     359.566     370.830     378.609     386.978     1,850.038
Social Security (650):
  BA..............................................................     522.557     546.967     572.120     600.260     632.747     668.078     3,020.172
  OT..............................................................     520.496     544.947     569.958     597.679     629.829     664.989     3,007.402
  On-Budget:
    BA............................................................      15.849      15.891      17.704      19.768      21.743      24.029        99.135
    OT............................................................      15.849      15.891      17.704      19.768      21.743      24.029        99.135
  Off-Budget:
    BA............................................................     506.708     531.076     554.416     580.492     611.004     644.049     2,921.037
    OT............................................................     504.647     529.056     552.254     577.911     608.086     640.960     2,908.267
Veterans Benefits and Services (700):
  BA..............................................................      69.448      68.881      66.321      69.448      69.961      70.059       344.670
  OT..............................................................      68.873      68.148      66.014      69.258      69.672      69.787       342.879
Administration of Justice (750):
  BA..............................................................      39.817      40.840      41.390      42.031      42.602      42.860       209.723
  OT..............................................................      39.501      42.268      42.463      42.650      42.779      42.803       212.963
General Government (800):
  BA..............................................................      16.748      18.017      17.956      17.570      17.587      17.408        88.538
  OT..............................................................      17.656      18.308      17.999      17.555      17.378      17.216        88.456
Net Interest (900):
  BA..............................................................     176.942     213.979     254.097     280.694     297.562     311.572     1,357.904
  OT..............................................................     176.942     213.979     254.097     280.694     297.562     311.572     1,357.904
  On-Budget:
    BA............................................................     267.942     310.479     359.797     397.194     426.162     453.172     1,946.804
    OT............................................................     267.942     310.479     359.797     397.194     426.162     453.172     1,946.804
  Off-Budget:
    BA............................................................     -91.000     -96.500    -105.700    -116.500    -128.600    -141.600      -588.900
    OT............................................................     -91.000     -96.500    -105.700    -116.500    -128.600    -141.600      -588.900
Allowances (920):
  BA..............................................................      -3.135      47.903     -10.368      -9.641      -9.193      -8.738         9.963
  OT..............................................................      -3.304      24.359      -2.845     -10.363     -13.636     -14.484       -16.969
Undistributed Offsetting Receipts (950):
  BA..............................................................     -65.258     -67.101     -75.738     -78.897     -75.202     -78.745      -375.683
  OT..............................................................     -65.258     -67.101     -76.863     -79.709     -74.577     -78.120      -376.370
  On-Budget:
    BA............................................................     -54.104     -55.362     -63.263     -65.480     -60.876     -63.447      -308.428
    OT............................................................     -54.104     -55.362     -64.388     -66.292     -60.251     -62.822      -309.115
  Off-Budget:
    BA............................................................     -11.154     -11.739     -12.475     -13.417     -14.326     -15.298       -67.255

[[Page 8293]]

 
    OT............................................................     -11.154     -11.739     -12.475     -13.417     -14.326     -15.298       -67.255
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                    FISCAL YEAR 2006 BUDGET RESOLUTION AS PASSED BY THE HOUSEPDISCRETIONARY SPENDING
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                 2005        2006        2007        2008        2009        2010      2006-2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Summary
Total Spending:
  BA...............................................................     921.153     893.020     866.038     887.005     910.515     920.227    4,476.805
  OT...............................................................     961.683     979.549     938.535     936.992     951.327     967.610    4,774.013
Defense:
  BA...............................................................     498.817     438.973     462.597     481.043     500.969     511.018    2,394.600
  OT...............................................................     495.374     472.981     457.981     468.293     486.407     503.005    2,388.667
Nondefense:
  BA...............................................................     422.336     454.047     403.441     405.962     409.546     409.209    2,082.205
  OT...............................................................     466.309     506.568     480.554     468.699     464.920     464.605    2,385.346
 
                                                                       By Function
National Defense (050):
  BA...............................................................     498.817     438.973     462.597     481.043     500.969     511.018    2,394.600
  OT...............................................................     495.374     472.981     457.981     468.293     486.407     503.005    2,388.667
International Affairs (150):
  BA...............................................................      33.691      32.174      34.023      34.370      34.396      34.071      169.034
  OT...............................................................      36.728      37.929      35.947      34.943      34.684      34.230      177.733
General Science, Space, and Technology (250):
  BA...............................................................      24.295      24.605      25.058      25.426      25.732      26.042      126.863
  OT...............................................................      23.516      23.815      24.523      24.829      25.142      25.462      123.771
Energy (270):
  BA...............................................................       3.807       4.536       3.756       3.873       3.803       3.664       19.632
  OT...............................................................       3.785       4.742       4.150       3.864       3.841       3.740       20.337
Natural Resources and Environment (300):
  BA...............................................................      31.329      28.475      28.445      28.468      28.403      27.984      141.775
  OT...............................................................      31.040      30.607      29.726      29.424      29.145      28.485      147.387
Agriculture (350):
  BA...............................................................       5.725       5.425       5.723       5.765       5.777       5.721       28.411
  OT...............................................................       5.754       5.848       5.637       5.669       5.683       5.700       28.537
Commerce and Housing Credit (370):
  BA...............................................................       1.849       0.864       0.991       1.050       1.500       5.206        9.611
  OT...............................................................       1.543       1.099       1.332       1.066       1.273       4.123        8.893
  On-budget:
    BA.............................................................       1.849       0.864       0.991       1.050       1.500       5.206        9.611
    OT.............................................................       1.543       1.099       1.332       1.066       1.273       4.123        8.893
  Off-budget:
    BA.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
    OT.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
Transportation (400):
  BA...............................................................      25.466      21.607      21.668      22.075      22.469      23.805      111.624
  OT...............................................................      65.581      68.205      70.268      71.918      73.343      75.248      358.982
Community and Regional Development (450):
  BA...............................................................      22.676      13.695      14.051      14.218      14.357      14.374       70.695
  OT...............................................................      20.314      18.702      17.546      15.811      14.677      14.322       81.058
Education, Training, Employment and Social Services (500):
  BA...............................................................      79.556      78.103      75.794      75.753      75.602      74.796      380.048
  OT...............................................................      79.217      79.502      78.041      76.338      75.464      74.968      384.313
Health (550):
  BA...............................................................      54.368      50.912      50.268      50.558      52.862      50.265      254.865
  OT...............................................................      51.012      51.730      51.138      50.608      50.551      50.577      254.604
Medicare (570):
  BA...............................................................       4.000       5.061       4.987       4.991       4.975       4.895       24.909
  OT...............................................................       3.989       4.855       4.991       5.002       4.978       4.912       24.738
Income Security (600):
  BA...............................................................      46.056      47.115      46.295      46.324      46.178      45.489      231.401
  OT...............................................................      54.294      54.203      53.416      52.011      50.754      49.216      259.600
Social Security (650):
  BA...............................................................       4.426       4.734       4.627       4.630       4.615       4.539       23.145
  OT...............................................................       4.405       4.724       4.725       4.659       4.617       4.550       23.275
  On-budget:
    BA.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
    OT.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
  Off-budget:
    BA.............................................................       4.426       4.734       4.627       4.630       4.615       4.539       23.145
    OT.............................................................       4.405       4.724       4.725       4.659       4.617       4.550       23.275
Veterans Benefits and Services (700):
  BA...............................................................      30.861      31.738      30.844      30.780      30.578      29.955      153.895
  OT...............................................................      30.327      31.035      30.621      30.693      30.407      29.809      152.565
Administration of Justice (750):
  BA...............................................................      38.819      38.713      40.623      41.359      42.016      42.367      205.078
  OT...............................................................      38.424      40.971      41.170      41.702      42.243      42.366      208.452
General Government (800):
  BA...............................................................      15.412      16.301      16.298      16.331      16.291      16.043       81.264
  OT...............................................................      16.380      16.612      16.333      16.171      16.126      15.904       81.146
Allowances (920):
  BA...............................................................  ..........      50.000  ..........  ..........  ..........  ..........       50.000
  OT...............................................................  ..........      32.000      11.000       4.000       2.000       1.000       50.000
Undistributed Offsetting Receipts (950):
  BA...............................................................  ..........      -0.011      -0.010      -0.009      -0.008      -0.007       -0.045
  OT...............................................................  ..........      -0.011      -0.010      -0.009      -0.008      -0.007       -0.045
  On-budget:
    BA.............................................................  ..........      -0.011      -0.010      -0.009      -0.008      -0.007       -0.045
    OT.............................................................  ..........      -0.011      -0.010      -0.009      -0.008      -0.007       -0.045
  Off-budget:
    BA.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
    OT.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 8294]]


                                      FISCAL YEAR 2006 BUDGET RESOLUTION AS PASSED BY THE HOUSE MANDATORY SPENDING
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                 2005        2006        2007        2008        2009        2010      2006-2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Summary
Total Spending:
  BA...............................................................   1,549.958   1,660.507   1,764.077   1,874.532   1,984.122   2,090.716    9,373.954
  OT...............................................................   1,489.561   1,591.072   1,696.644   1,805.740   1,912.752   2,019.717    9,025.925
On-Budget:
  BA...............................................................   1,153.630   1,247.004   1,337.663   1,432.187   1,524.459   1,612.204    7,153.517
  OT...............................................................   1,095.273   1,179.579   1,272.490   1,366.005   1,456.009   1,544.305    6,818.388
Off-Budget:
  BA...............................................................     396.328     413.503     426.414     442.345     459.663     478.512    2,220.437
  OT...............................................................     394.288     411.493     424.154     439.735     456.743     475.412    2,207.537
 
                                                                       By Function
National Defense (050):
  BA...............................................................       1.804       2.589       2.663       2.687       2.794       2.886       13.619
  OT...............................................................       1.822       2.622       2.692       2.710       2.813       2.903       13.740
International Affairs (150):
  BA...............................................................      -1.606      -0.456       0.812       0.827       0.841       0.857        2.881
  OT...............................................................      -4.562      -2.832      -2.588      -2.546      -2.569      -2.587      -13.122
General Science, Space, and Technology (250):
  BA...............................................................       0.118       0.130       0.113       0.119       0.119       0.120        0.601
  OT...............................................................       0.078       0.079       0.087       0.093       0.100       0.103        0.462
Energy (270):
  BA...............................................................      -1.243      -1.389      -1.394      -1.428      -1.747      -1.910       -7.868
  OT...............................................................      -2.991      -2.715      -2.938      -3.313      -3.189      -3.197      -15.352
Natural Resources and Environment (300):
  BA...............................................................       1.198       2.038       2.438       2.484       3.303       3.264       13.527
  OT...............................................................       0.128       1.669       2.320       2.978       3.518       3.769       14.254
Agriculture (350):
  BA...............................................................      24.426      24.055      21.467      19.569      19.914      19.696      104.701
  OT...............................................................      22.796      22.659      20.362      18.612      19.113      18.987       99.733
Commerce and Housing Credit (370):
  BA...............................................................      11.155       5.308       3.883       5.390       5.367       5.259       25.207
  OT...............................................................       5.959      -0.137      -1.603      -0.416      -1.305      -1.830       -5.291
  On-budget:
    BA.............................................................      14.955       9.908       9.083       8.990       9.167       9.359       46.507
    OT.............................................................       9.759       4.463       3.597       3.184       2.495       2.270       16.009
  Off-budget:
    BA.............................................................      -3.800      -4.600      -5.200      -3.600      -3.800      -4.100      -21.300
    OT.............................................................      -3.800      -4.600      -5.200      -3.600      -3.800      -4.100      -21.300
Transportation (400):
  BA...............................................................      47.040      48.400      48.462      48.426      48.442      48.449      242.179
  OT...............................................................       2.122       2.188       2.153       2.249       2.157       2.108       10.855
Community and Regional Development (450):
  BA...............................................................       0.331       0.484       0.145       0.065       0.064       0.067        0.825
  OT...............................................................       0.442      -0.241      -0.133      -0.084      -0.186      -0.182       -0.826
Education, Training, Employment and Social Services (500):
  BA...............................................................      14.445      13.875      14.131      14.227      14.592      14.856       71.681
  OT...............................................................      13.581      11.479      12.319      12.526      12.899      13.213       62.436
Health (550):
  BA...............................................................     203.101     211.239     224.952     244.452     264.251     286.258    1,231.152
  OT...............................................................     201.758     210.783     223.663     243.202     263.074     284.997    1,225.719
Medicare (570):
  BA...............................................................     288.587     326.120     366.888     390.321     415.259     443.216    1,941.804
  OT...............................................................     289.598     326.089     367.176     390.362     414.850     443.530    1,942.007
Income Security (600):
  BA...............................................................     293.001     300.103     306.121     319.019     328.351     338.101    1,591.695
  OT...............................................................     293.460     299.852     306.150     318.819     327.855     337.762    1,590.438
Social Security (650):
  BA...............................................................     518.131     542.233     567.493     595.630     628.132     663.539    2,997.027
  OT...............................................................     516.091     540.223     565.233     593.020     625.212     660.439    2,984.127
  On-budget:
    BA.............................................................      15.849      15.891      17.704      19.768      21.743      24.029       99.135
    OT.............................................................      15.849      15.891      17.704      19.768      21.743      24.029       99.135
  Off-budget:
    BA.............................................................     502.282     526.342     549.789     575.862     606.389     639.510    2,897.892
    OT.............................................................     500.242     524.332     547.529     573.252     603.469     636.410    2,884.992
Veterans Benefits and Services (700):
  BA...............................................................      38.587      37.143      35.477      38.668      39.383      40.104      190.775
  OT...............................................................      38.546      37.113      35.393      38.565      39.265      39.978      190.314
Administration of Justice (750):
  BA...............................................................       0.998       2.127       0.767       0.672       0.586       0.493        4.645
  OT...............................................................       1.077       1.297       1.293       0.948       0.536       0.437        4.511
General Government (800):
  BA...............................................................       1.336       1.716       1.658       1.239       1.296       1.365        7.274
  OT...............................................................       1.276       1.696       1.666       1.384       1.252       1.312        7.310
Net Interest (900):
  BA...............................................................     176.942     213.979     254.097     280.694     297.562     311.572    1,357.904
  OT...............................................................     176.942     213.979     254.097     280.694     297.562     311.572    1,357.904
  On-budget:
    BA.............................................................     267.942     310.479     359.797     397.194     426.162     453.172    1,946.804
    OT.............................................................     267.942     310.479     359.797     397.194     426.162     453.172    1,946.804
  Off-budget:
    BA.............................................................     -91.000     -96.500    -105.700    -116.500    -128.600    -141.600     -588.900
    OT.............................................................     -91.000     -96.500    -105.700    -116.500    -128.600    -141.600     -588.900
Allowances (920):
  BA...............................................................      -3.135      -2.097     -10.368      -9.641      -9.193      -8.738      -40.037
  OT...............................................................      -3.304      -7.641     -13.845     -14.363     -15.636     -15.484      -66.969
Undistributed Offsetting Receipts (950):
  BA...............................................................     -65.258     -67.090     -75.728     -78.888     -75.194     -78.738     -375.638
  OT...............................................................     -65.258     -67.090     -76.853     -79.700     -74.569     -78.113     -376.325
  On-budget:
    BA.............................................................     -54.104     -55.351     -63.253     -65.471     -60.868     -63.440     -308.383
    OT.............................................................     -54.104     -55.351     -64.378     -66.283     -60.243     -62.815     -309.070
  Off-budget:
    BA.............................................................     -11.154     -11.739     -12.475     -13.417     -14.326     -15.298      -67.255
    OT.............................................................     -11.154     -11.739     -12.475     -13.417     -14.326     -15.298      -67.255
 
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 8295]]

TH28AP05.001


[[Page 8296]]

TH28AP05.002


[[Page 8297]]

TH28AP05.003


[[Page 8298]]

TH28AP05.004


[[Page 8299]]

TH28AP05.005


[[Page 8300]]

TH28AP05.006


[[Page 8301]]

                      RECONCILIATION INSTRUCTIONS

       The reconciliation process set forth in section 310 of the 
     Congressional Budget Act of 1974 provides Congress with 
     expedited procedures to achieve changes in spending and 
     revenues. Using the reconciliation procedures, Congress 
     directs its committees to submit legislation to achieve 
     specified changes in laws within their respective 
     jurisdictions to their respective Budget Committees or, if 
     only one committee is so reconciled, to report the changes 
     directly to the House or Senate by a date certain.


                            HOUSE RESOLUTION

     Section 201: Reconciliation in the House
       The House amendment provides instructions for two 
     reconciliation bills. The first instructs nine authorizing 
     committees to achieve specified savings in direct spending; 
     the second provides for a reduction in revenue.
       The committees may make whatever changes in law they deem 
     appropriate to meet the specified amount of savings for 
     fiscal year 2006 and for the period of fiscal years 2006 
     through 2010. (1) The Agriculture Committee is instructed to 
     reduce direct spending from current law levels by $797 
     million in 2006 and $5.278 billion for fiscal years 2006-
     2010; (2) the Education and Workforce Committee is instructed 
     to reduce direct spending from current law levels by $2.097 
     billion in fiscal year 2006 and $21.410 billion for fiscal 
     years 2006-2010; (3) the Energy and Commerce Committee is 
     instructed to reduce direct spending from current law levels 
     by $630 million in fiscal year 2006 and $20.002 billion for 
     fiscal years 2006-2010; (4) the Financial Services Committee 
     is instructed to reduce direct spending from current law 
     levels by $30 million in fiscal year 2006 and $270 million 
     for fiscal years 2006-2010; (5) the Judiciary Committee is 
     instructed to reduce direct spending from current law levels 
     by $123 million in fiscal year 2006 and $603 million for 
     fiscal years 2006-2010; (6) the Resources Committee is 
     instructed to reduce direct spending from current law levels 
     by $96 million in fiscal year 2006 and $1.413 billion for 
     fiscal years 2006-2010; (7) the Transportation and 
     Infrastructure Committee is instructed to reduce direct 
     spending from current law levels by $12 million in fiscal 
     year 2006 and $103 million for fiscal years 2006-2010; (8) 
     the Veterans' Affairs Committee is instructed to reduce 
     direct spending from current law levels by $155 million in 
     fiscal year 2006 and $798 million for fiscal years 2006-2010; 
     and, (9) the Committee on Ways and Means is instructed to 
     reduce the deficit by $3.907 billion in fiscal year 2006 and 
     by $18.680 billion for fiscal years 2006-2010.
       In the House-passed budget resolution, the first 
     reconciliation submissions must be transmitted to the Budget 
     Committee by September 16, 2005.
       The second reconciliation instruction directs the Committee 
     on Ways and Means to report a measure to reduce taxes by 
     $16.623 billion in 2006 and by $45.000 billion for fiscal 
     years 2006-2010. These amounts are sufficient to accommodate 
     an extension of certain expiring tax provisions from the 2001 
     Economic Growth and Tax Relief Reconciliation Act and the 
     2003 Jobs and Growth Tax Relief Reconciliation Act, and 
     certain other tax relief.
       The second reconciliation bill must be reported by the Ways 
     and Means Committee to the House floor by June 24, 2005.


                            SENATE AMENDMENT

     Section 201: Reconciliation in the Senate
       The Senate amendment contains instructions for three 
     separate bills. The first instruction directs six authorizing 
     committees to submit to the Senate Committee on the Budget, 
     changes in laws by June 6, 2005, sufficient to reduce outlays 
     by $2.46 billion in fiscal year 2006, and $17 billion for the 
     period of fiscal years 2006 through 2010.

                        [In billions of dollars]

        Outlay reduction targets                 Fiscal Years 2006-2010
Agriculture, Nutrition and Forestry.................................2.8
Banking, Housing, and Urban Affairs................................0.27
Commerce, Science, and Transportation...............................2.6
Energy and Natural Resources........................................2.7
Environment and Public Works........................................0.1
Health, Education, Labor, and Pensions..............................8.6

                                                               ________
                                                               
    Total Outlay Target..............................................17
       The second instruction directs the Senate Committee on 
     Finance to report to the Senate changes in law to reduce the 
     total level of revenues by not more than $19.016 billion for 
     fiscal year 2006, and $128.580 billion for the period of 
     fiscal years 2006 through 2010, no later than September 7, 
     2005.
       The third instruction directs the Senate Committee on 
     Finance to report to the Senate a bill to increase the 
     statutory limit on the debt by $446.464 billion no later than 
     September 16, 2005.


                          CONFERENCE AGREEMENT

     Section 201: Reconciliation in the House
       The conference agreement provides for three reconciliation 
     bills, and provides instructions to House committees to make 
     changes in programs within their jurisdiction to achieve the 
     levels provided for in the budget resolution.
       Section 201(a) directs eight committees to slow the growth 
     of mandatory spending in programs within their jurisdiction. 
     (1) The Agriculture Committee is instructed to reduce direct 
     spending from current law levels by $173 million in 2006 and 
     $3 billion for fiscal years 2006-2010; (2) the Education and 
     Workforce Committee is instructed to reduce direct spending 
     from current law levels by $992 million in fiscal year 2005 
     and 2006, and $12.651 billion for fiscal years 2005-2010; (3) 
     the Energy and Commerce Committee is instructed to reduce 
     direct spending from current law levels by $2 million in 
     fiscal year 2006 and $14.734 billion for fiscal years 2006-
     2010; (4) the Financial Services Committee is instructed to 
     reduce direct spending from current law levels by $30 million 
     in fiscal year 2006 and $470 million for fiscal years 2006-
     2010; (5) the Judiciary Committee is instructed to reduce 
     direct spending from current law levels by $60 million in 
     fiscal year 2006 and $300 million for fiscal years 2006-2010; 
     (6) the Resources Committee is instructed to reduce direct 
     spending from current law levels by $2.4 billion for fiscal 
     years 2006-2010; (7) the Transportation and Infrastructure 
     Committee is instructed to reduce direct spending from 
     current law levels by $12 million in fiscal year 2006 and 
     $103 million for fiscal years 2006-2010; (8) the Committee on 
     Ways and Means is instructed to reduce the deficit by $250 
     million in fiscal year 2006 and by $1 billion for fiscal 
     years 2006-2010. These changes are to be submitted to the 
     House Budget Committee by September 16, 2005.
       Section 201(b) instructs the House Committee on Ways and 
     Means to report a reconciliation bill to the House floor by 
     September 23, 2005; this measure is to reduce the level of 
     revenue collected by the Federal government by $11 billion in 
     fiscal year 2006 and by $70 billion for fiscal years 2006-
     2010.
       Section 201(c) instructs the House Committee on Ways and 
     Means to report a reconciliation bill to change the public 
     debt limit to $8.965 trillion by September 30, 2005.
       Section 201(d) gives the Chairman of the House Committee on 
     the Budget authority similar to that afforded to the Chairman 
     of the Senate Budget Committee under the Congressional Budget 
     Act, to make adjustments in the allocations and aggregates 
     subsequent to the enactment of reconciliation if the effect 
     of complying with reconciliation instructions resulted in a 
     mix of outlay and revenue levels not contemplated by the 
     budget resolution, but nevertheless deficit-neutral.
     Section 202: Reconciliation in the Senate
       The conference agreement adopts the form of the Senate-
     passed resolution and provides for three reconciliation 
     bills. The first instruction directs eight authorizing 
     committees to report to the Senate Committee on the Budget, 
     changes in laws by September 16, 2005 sufficient to reduce 
     outlays by $1.5 billion in fiscal year 2006, and $34.7 
     billion for the period of fiscal years 2006 through 2010.

                        [In billions of dollars]

        Outlay reduction targets                 Fiscal Years 2006-2010
Agriculture, Nutrition, and Forestry................................3.0
Banking, Housing, and Urban Affairs.................................0.5
Commerce, Science, and Transportation...............................4.8
Energy and Natural Resources........................................2.4
Environment and Public Works.......................................0.03
Finance............................................................10.0
Health, Education, Labor, and Pensions.............................13.7
Judiciary...........................................................0.3
                                                               ________
                                                               
    Total Outlay Target............................................34.7

       The second instruction directs the Senate Committee on 
     Finance to report to the Senate changes in law to reduce the 
     total level of revenues by not more than $11.0 billion for 
     fiscal year 2006, and $70.0 billion for the period of fiscal 
     years 2006 through 2010, not later than September 23, 2005.
       The third instruction directs the Senate Committee on 
     Finance to report to the Senate a bill to increase the 
     statutory limit on the debt by $781 billion not later than 
     September 30, 2005.

 FISCAL YEAR 2006 BUDGET RESOLUTION CONFERENCE AGREEMENT--RECONCILIATION
               INSTRUCTIONS BY HOUSE AUTHORIZING COMMITTEE
------------------------------------------------------------------------
                                               2006          2006-2010
------------------------------------------------------------------------
   Submissions to Slow the Growth in Mandatory Spending and to Achieve
               Deficit Reduction (Due September 16, 2005)
           [By fiscal year in millions of dollars of outlays]
 
Committee on Agriculture................            -173          -3,000
Committee on Education and the Workforce            -992         -12,651
Committee on Energy and Commerce........              -2         -14,734
Committee on Financial Services.........             -30            -470
Committee on the Judiciary..............             -60            -300

[[Page 8302]]

 
Committee on Resources..................              --          -2,400
Committee on Transportation and                      -12            -103
 Infrastructure.........................
Committee on Ways and Means.............            -250          -1,000
                                         -------------------------------
    Total...............................          -1,519         -34.658
 
 Submission Providing for Changes in Revenue (Due September 23, 2005)[By
                   fiscal year in millions of dollars]
 
Ways and Means..........................         -11,000         -70,000
 
Increase in Statutory Debt Limit (Due September 30, 2005)[By fiscal year
                         in millions of dollars]
Ways and Means..........................         781,000
------------------------------------------------------------------------


                   SENATE RECONCILIATION INSTRUCTIONS
                        [In billions of dollars]
------------------------------------------------------------------------
                Committee                      2006          2006-2010
------------------------------------------------------------------------
Agriculture.............................          -0.173          -3.000
Banking.................................          -0.030          -0.470
Commerce................................          -0.010          -4.810
Energy..................................           0.000          -2.400
Environment.............................          -0.004          -0.027
Finance.................................           0.000         -10.000
Judiciary...............................          -0.060          -0.300
HELP....................................          -1.242         -13.651
                                         -------------------------------
    Total...............................          -1.519         -34.658
------------------------------------------------------------------------

                             RESERVE FUNDS

       A budget resolution does not become law and cannot amend 
     law. However, pursuant to section 301(b)(4) of the 
     Congressional Budget Act, some provisions in the resolution 
     may affect the consideration of legislation in order to 
     implement and enforce the underlying policy assumptions, if 
     any. The conference agreement contains a number of provisions 
     which implement policies assumed in this resolution.
       In general, a reserve fund (or discretionary adjustment) 
     permits the Chairman of the Committee on the Budget to 
     increase the section 302 allocations and other appropriate 
     levels set out in this resolution, including, in the Senate, 
     the discretionary spending limits, once certain conditions 
     have been met. The authority to make these adjustments is 
     solely within the discretion of the Chairman and may be made 
     when the committee of jurisdiction reports a measure that 
     satisfies the conditions set out in the reserve fund.


                            house resolution

     Section 301: Contingency procedure for surface transportation
       This section of the House resolution permits the Chairman 
     of the Committee on the Budget to adjust the appropriate 
     levels in the budget resolution to accommodate legislation 
     increasing spending for highway and transit programs above 
     the levels in the budget resolution to the extent there are 
     offsets for the additional spending.
       Subsection (a) permits the Chairman of the Committee on the 
     Budget to increase the Committee on Transportation and 
     Infrastructure?s allocation for legislation that increases 
     mandatory contract authority for highway and transit programs 
     financed out of the Highway Trust Fund. In order to make the 
     adjustment, the additional spending must be offset by a 
     reduction in mandatory outlays out of the Fund or receipts 
     appropriated to the Fund.
       Because any additional contract authority provided pursuant 
     to subsection (a) would be made available for obligation 
     through a change in obligation limitations, subsection (b) 
     permits the Chairman of the Committee on the Budget to 
     increase the Appropriations Committee?s allocation of 
     discretionary outlays to the extent legislation increases the 
     obligation limits for highway programs above the levels 
     assumed in the budget resolution. In order to make the 
     adjustment, legislation must first be enacted in compliance 
     with subsection (a).


                            senate amendment

     Section 301: Reserve Fund for Health Information Technology 
         and Pay-for-Performance
       The Senate amendment includes a deficit-neutral reserve 
     fund for health information technology.
       To qualify for the reserve fund, legislation from the 
     Health, Education, Labor and Pensions Committee or the 
     Finance Committee must include language that provides 
     incentives or other support for adoption of information 
     technology to improve quality in health care; and provides 
     for performance-based payments that are based on accepted 
     clinical performance measures and improve the quality in 
     healthcare.
       The reserve fund permits the Budget Chairman to adjust 
     allocation levels and would assist the HELP and Finance 
     Committees to work together to craft legislation.
       The Committee intends to enforce five-year budget 
     neutrality in the evaluation of legislation that would 
     qualify for this reserve fund.
     Section 302: Reserve Fund for Asbestos Injury Trust Fund
       The Senate amendment includes a deficit-neutral reserve 
     fund for asbestos injury compensation legislation. The 
     committee recognizes the urgent need for litigation reform 
     for victims of asbestos exposure. The committee intends any 
     asbestos compensation fund to protect the budget and 
     taxpayers from a financial obligation associated with 
     outstanding claims, debt of the fund and interest on such 
     debt.
     Section 303: Reserve Fund for the Uninsured
       The Senate amendment includes a deficit-neutral reserve 
     fund for legislation that would addresses health care costs, 
     coverage, or care for the uninsured. The legislation could 
     improve the safety net by providing the uninsured with access 
     to integrated and other health care services. The legislation 
     could also increase the number of people who have health 
     insurance directly or through reform mechanisms that are 
     designed to reduce the growth of health care costs. Such 
     mechanisms may include tax- and market-based measures, such 
     as tax credits, deductibility, regulatory reforms, consumer-
     directed initiatives, and other measures targeted to key 
     segments of the uninsured, such as individuals without 
     employer-sponsored coverage and college students and recent 
     graduates. However, the resolution provides that any measure 
     designed to increase coverage for certain populations not 
     achieve this result primarily by increasing premiums for the 
     currently insured, as might result from a measure that 
     permits preferential regulation for select groups and results 
     in adverse selection.
       The reserve fund allows the Chairman to adjust applicable 
     allocations and aggregates to accommodate this legislation if 
     the Committee on Finance or the Committee on Health, 
     Education, Labor, and Pensions reports a bill that meets the 
     standards of this reserve fund.
     Section 304: Reserve Fund for Land and Water Conservation 
         Fund
       The Senate amendment includes a reserve fund stipulating 
     that if legislation is enacted that opens ANWR to drilling, 
     an amount equal to $1.05 billion of the associated receipts 
     will be devoted to appropriations for the Land and Water 
     Conservation Programs, the Forest Legacy Program, and the 
     Coastal and Estuarine Land Protection Program ($350 million 
     per year in 2008, 2009, and 2010).
     Section 305: Reserve Fund for the Federal Pell Grant Program
       The Senate amendment includes a reserve fund for $4.3 
     billion in budget authority only for legislation that retires 
     the existing shortfall in budget authority for Pell Grant 
     funding.
     Section 306: Reserve Fund for Higher Education
       The Senate amendment includes a reserve fund ($5.510 
     billion in budget authority and $5.006 billion in outlays 
     over the 2006-2010 period) to cover the new costs of 
     initiatives in the reauthorization of the Higher Education 
     Act to provide increased access to college for low- and 
     middle-income students.
     Section 307: Reserve Fund for Energy Legislation
       The Senate amendment includes a reserve fund for energy 
     policy legislation, which totals $0.1 billion in budget 
     authority for 2006 and $2.0 billion in budget authority for 
     the 2006-2010 period (and associated outlays).
     Section 308: Reserve Fund for Safe Importation of 
         Prescription Drugs
       The Senate amendment includes a reserve fund in relation to 
     the importation of FDA-approved prescription drugs from 
     specified foreign countries. If the Committee on

[[Page 8303]]

     Health, Education, Labor, and Pensions produces legislation 
     that allows for the safe importation of prescription drugs, 
     the Budget Committee Chairman may revise the Committee on 
     Health, Education, Labor, and Pension's allocations to 
     reflect the savings associated with this legislation.
     Section 309: Adjustment for Surface Transportation
       The Senate amendment includes a mechanism to increase 
     allocations of contract authority and outlays for the 
     relevant committees that report legislation relating to the 
     reauthorization of and appropriation for surface 
     transportation programs, provided that the reauthorization 
     (by virtue of a title reported by the Committee on Finance) 
     makes available new net resources for the highway trust fund 
     that offset the resulting outlays--without increasing the 
     deficit.
     Section 310: Reserve fund for the bipartisan Medicaid 
         commission
       The Senate amendment includes a reserve fund for 
     legislation that creates a bipartisan commission charged with 
     reviewing and recommending long term goals for the effective 
     operation of Medicaid.
     Section 311: Deficit neutral reserve fund for patriotic 
         employers of national guardsmen and reservists
       The Senate amendment includes a reserve fund for deficit-
     neutral legislation that provides a 50-percent tax credit to 
     employees who are on active duty status as members of the 
     Guard or Reserve to make up the difference between the 
     employee's civilian pay and military pay and/or for 
     compensation paid to a worker hired to replace an active duty 
     Guard or Reserve employee.
     Section 312: Deficit neutral reserve fund for the Family 
         Opportunity Act
       The Senate amendment includes a reserve fund for deficit-
     neutral legislation that provides families of disabled 
     children with the opportunity to purchase Medicaid coverage.
     Section 313: Deficit neutral reserve fund for the restoration 
         of SCHIP funds
       The Senate amendment includes a reserve fund for deficit-
     neutral legislation that provides for the restoration of 
     unexpended funds under the State Children's Health Insurance 
     Program that reverted to the Treasury on October 1, 2004 and 
     that may provide for the redistribution of such funds for 
     outreach and enrollment as well as for coverage initiatives.
     Section 314: Reserve fund for funding of Hope credit
       The Senate amendment includes a reserve fund for deficit-
     neutral legislation that increases the Hope credit to $4,000 
     and makes the credit available for 4 years.
     Section 315: Deficit neutral reserve fund for influenza 
         vaccine shortage prevention
       The Senate amendment includes a reserve fund for deficit-
     neutral legislation that increases the participation of 
     manufacturers in the production of influenza vaccine, and 
     bioterror countermeasures, increase research and innovation 
     in new technologies for the development of influenza vaccine, 
     and enhances the ability of the United States to track and 
     respond to domestic influenza outbreaks as well as pandemic 
     containment efforts.
     Section 316: Reserve fund for extension of treatment of 
         combat pay for earned income and child tax credits
       The Senate amendment includes a reserve fund for deficit 
     neutral legislation that makes permanent the taxpayer 
     election to treat combat pay otherwise excluded from gross 
     income under section 112 of Internal Revenue Code as earned 
     income for purposes of the earned income credit and makes the 
     permanent the treatment of such combat pay as earned income 
     for purposes of the child tax credit.


                          conference agreement

     Section 301: Adjustment for Surface Transportation
       Section 301 of the conference agreement is similar to 
     section 301 of the House resolution and section 309 of the 
     Senate amendment and allows for adjustments to committee 
     allocations for changes in surface transportation policy to 
     the extent that amounts in excess of those assumed in this 
     resolution must be offset by new revenues or a reduction in 
     trust fund mandatory outlays.
     Section 302: Reserve fund for the Family Opportunity Act
       Section 302 of the conference agreement retains the 
     language of section 312 of the Senate amendment which 
     provides for a reserve fund for legislation to enable the 
     expansion of Medicaid coverage for children with special 
     needs to permit their parents to purchase such coverage--with 
     a modification. The conference agreement applies in both the 
     House of Representatives and the Senate and permits the 
     appropriate Budget Committee chairman to adjust committee 
     allocations and other appropriate budgetary aggregates and 
     allocations for legislation that is reported (and amendments 
     thereto, or any conference report thereon) from the Senate 
     Finance Committee, or the House Committee on Energy and 
     Commerce, if the committees report legislation that expands 
     Medicaid coverage for children with special needs to permit 
     their parents to purchase such coverage. In order for the 
     adjustments to be made, the Senate Finance Committee must be 
     within its 302 allocation, and the legislation reported by 
     committees in both Houses must be deficit neutral in fiscal 
     year 2006 and for the period of fiscal years 2006 through 
     2010.
     Section 303: Reserve fund for the Federal Pell Grant Program
       Section 303 retains the language of section 305 of the 
     Senate amendment which establishes a reserve fund for a 
     measure that provides appropriations for the shortfall within 
     the Federal Pell Grant program, with certain modifications. 
     The reserve fund in the conference agreement applies in both 
     the House of Representatives and the Senate and permits the 
     appropriate Budget Committee chairman to adjust committee 
     allocations and other appropriate budgetary aggregates and 
     allocations by up to $4.3 billion in budget authority for the 
     purpose of repaying the Pell shortfall. It may apply to a 
     measure reported by the Appropriations Committee of either 
     House, or by the relevant authorizing committee, though it is 
     intended that the spending associated with this reserve fund 
     be classified as mandatory. In order for the adjustments to 
     be made, the committee in the Senate must be within its 302 
     allocations, and the legislation reported by a committee in 
     the House must be deficit-neutral in fiscal year 2006 and the 
     period of fiscal years 2006 through 2010.
       A change in the way new Pell Grant spending is estimated is 
     included in the ``Budget Enforcement'' of this conference 
     agreement.
       Guidelines for estimating a bill, joint resolution, 
     amendment or conference report providing budget authority for 
     the shortfall in the Federal Pell Grant Program:
       Notwithstanding Rule 3 of the Budget Scorekeeping 
     Guidelines set forth in the joint explanatory statement of 
     the committee of conference accompanying Conference Report 
     No. 105-217, the provisions of any bill or joint resolution, 
     amendment offered thereto or conference report submitted 
     thereon, that provides budget authority for the shortfall in 
     the Federal Pell Grant program, shall be treated as direct 
     spending, under section 252 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, by the Congressional 
     Budget Office, and by the Chairmen of the House and Senate 
     Budget Committees, as appropriate, under the Congressional 
     Budget Act of 1974.
     Section 304: Reserve fund for the uninsured
       The conference agreement retains the Senate (section 303) 
     reserve fund for legislation relating to health insurance for 
     the uninsured. The reserve fund is deficit-neutral. The 
     reserve fund in the conference agreement applies in both the 
     House of Representatives and the Senate.
     Section 305: Reserve fund for the disposal of underutilized 
         Federal real property
       Section 304 establishes a reserve fund in the House of 
     Representatives for Federal real property disposal. If the 
     House Committee on Government Reform reports a bill designed 
     to enhance the ability of the Federal government to dispose 
     of unused and underutilized Federal real property assets, 
     then the House Budget Committee Chairman may increase the 
     allocation to that committee by $50 million in fiscal year 
     2006, and by the same amount over five years.
       The Federal government is one of the world's largest real 
     property owners with a real estate portfolio of over 3.2 
     billion square feet consisting of nearly 525,000 buildings 
     valued at over $328 billion. The proposed reserve fund would 
     facilitate the consideration of legislation to remove 
     barriers that discourage the disposal of unneeded property 
     and create incentives to encourage agencies to dispose of 
     such property at fair market value, thereby increasing 
     receipts to the Federal treasury.
     Section 306: Reserve fund for health information technology 
         and pay-for-performance
       The conference agreement retains the language of section 
     301 of the Senate amendment, which establishes a reserve fund 
     for health information technology and pay-for-performance, 
     with a modification. The reserve fund in the conference 
     agreement applies to the Senate and permits the Budget 
     Committee chairman to adjust committee allocations and other 
     appropriate budgetary aggregates and allocations for such 
     purpose, except that the legislation must be deficit-neutral 
     for the period of fiscal years 2006 through 2010.
     Section 307: Reserve fund for Asbestos Injury Trust Fund
       The conference agreement retains with modification the 
     Senate reserve fund (section 302) for legislation relating to 
     the asbestos injury trust fund, which provides for monetary 
     compensation to impaired victims of asbestos-related disease 
     who can establish that asbestos exposure is a substantial 
     contributing factor in causing their condition, does not 
     compensate unimpaired claimants or those suffering from a 
     disease who cannot establish asbestos exposure was a 
     substantial factor causing their disease and is estimated to 
     remain funded from non-taxpayer sources for the life of the 
     fund. Assuming the Committee is within its allocation as 
     provided under section 302(a) of the Congressional

[[Page 8304]]

     Budget Act of 1974 the Chairman of the Budget Committee may 
     make the appropriate adjustments in allocations and 
     aggregates to the extent that such legislation would not 
     increase the deficit for the period of fiscal years 2006-
     2056.
     Section 308: Reserve fund for energy legislation
       The conference agreement retains the Senate (section 307) 
     reserve fund for legislation relating to national energy 
     policy.
     Section 309: Reserve fund for the safe importation of 
         prescription drugs
       The conference agreement retains the Senate (section 308) 
     reserve fund for legislation relating to the safe importation 
     of prescription drugs. The reserve fund is deficit-neutral.
     Section 310: Reserve fund for the restoration of SCHIP funds
       The conference agreement retains the Senate (section 309) 
     reserve fund for legislation relating to the restoration of 
     SCHIP funds. The reserve fund is deficit-neutral.

                           BUDGET ENFORCEMENT

       Under section 301 of the Budget Act, the budget resolution 
     may include special procedures to enforce the spending and 
     revenue levels contained in the resolution and the 
     allocations found in the accompanying joint statement of 
     managers.


                            HOUSE RESOLUTION

     Section 401: Emergency legislation
       Section 401 provides Congress with the authority to 
     designate spending provisions as ``emergencies.'' It adopts 
     criteria for evaluating emergency spending. It also exempts 
     from budget controls supplemental appropriations for the 
     Department of Defense for contingency operations related to 
     the global war on terrorism.
       Section 401(a) provides a special exemption from budget 
     controls for a supplemental spending measure for the 
     Department of Defense for ``contingency operations related to 
     the global war on terrorism.'' Though $50 billion has been 
     budgeted for fiscal year 2006 in the budget resolution for 
     this purpose, the final amount has yet to be determined. The 
     final level of the supplemental will depend on the 
     President's request and the response of the Appropriations 
     committees of the House and the Senate.
       Subsection (b) exempts spending designated as an emergency 
     from points of order and other provisions of the 
     Congressional Budget Act.
     Section 402: Compliance with section 13301 of the Budget 
         Enforcement Act of 1990
       This section provides authority to include the 
     administrative expenses related to Social Security in the 
     allocation to the Appropriations Committee. This language is 
     necessary to ensure that the Appropriations Committee retains 
     control of administrative expenses through the Congressional 
     budget process.
     Section 403: Application and effect of changes in allocations 
         and aggregates
       This section sets forth the procedures for making 
     adjustments for the reserve funds included in this 
     resolution. Subsection (a)(1) and (2) provide that the 
     adjustments may only be made during the interval that the 
     legislation is under consideration and do not take effect 
     until the legislation is actually enacted. This is 
     approximately consistent with the procedures for making 
     adjustments for various initiatives under section 314 of the 
     Congressional Budget Act.
       Subsection (a)(3) provides that in order to make the 
     adjustments provided for in the reserve funds, the Chairman 
     of the House Budget Committee is directed to insert these 
     adjustments in the Congressional Record.
       Subsection (b) clarifies that any adjustments made under 
     any of the reserve funds in the resolution have the same 
     effect as if they were part of the original levels set forth 
     in section 101.
       Subsection (c) clarifies that the House Budget Committee 
     determines the levels and estimates used to enforce points of 
     order, as is the case for enforcing budget-related points of 
     order.
     Section 404: Restrictions on advance appropriations
       The section includes a general restriction that limits the 
     programs that may receive an advance appropriation and the 
     total level of such appropriations. Advance appropriations 
     may be provided for the accounts in appropriation bills 
     identified under the section ``Accounts Identified Advanced 
     Appropriations'' in this Joint Statement of Managers on the 
     Conference Report on the Budget Resolution in the section 
     detailing the conference agreement. The amount in the House 
     resolution was limited for these accounts to $23.568 billion 
     in budget authority. The amount is essentially the same as 
     provided in previous budget resolutions, but it was adjusted 
     to reflect advance appropriations provided for any year.
       The section defines an ``advance appropriation'' as any new 
     discretionary budget authority making general appropriations 
     or continuing appropriations for fiscal year 2006 that first 
     becomes available for any fiscal year after 2006.
     Section 405: Special rule in the house for certain 302(b) 
         suballocations
       Under section 302(b) of the Congressional Budget Act of 
     1974, the Appropriations Committee suballocates its section 
     302(a) allocation among its various subcommittees. The recent 
     reorganization of the House Appropriations subcommittees, 
     however, eliminated the subcommittee responsible for 
     legislative branch appropriations. To allow the House 
     Appropriations Committee to report a bill providing 
     legislative branch appropriations and then go to conference 
     with the Senate on that bill, a special rule was required 
     that allows the House Appropriations Committee to make a 
     section 302(b) suballocation for legislative branch 
     operations.
     Section 406: Special procedures to achieve savings in 
         mandatory spending through fiscal year 2014
       Section 406 describes the sense of Congress that during the 
     four fiscal years following the budget year, at least every 
     other concurrent resolution on the budget should include 
     reconciliation instructions to authorizing committees to 
     achieve significant savings in mandatory spending.


                            SENATE AMENDMENT

     Section 401: Restrictions on advance appropriations
       The Senate amendment includes language limiting the use of 
     advance appropriations. This restriction was first included 
     in the fiscal year 2001 budget resolution and was included 
     and revised in the conference agreements for the 2002, 2004, 
     and 2005 resolutions as well. The Senate amendment restricts 
     advance appropriations to an annual limit of $23.393 billion 
     to both the fiscal years 2006 and 2007 appropriation bills 
     and limits permissible advance appropriations to those 
     programs that are listed in the statement of managers 
     accompanying the conference report on the budget resolution.
       The list of permissible advances in the respective 
     appropriations bill is as follows:

             ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS

       Interior: Elk Hills
       Labor, HHS:
       Corporation for Public Broadcasting
       Employment and Training Administration
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Vocational and Adult Education
       Transportation, Treasury:
       Payment to Postal Service
       Section 8 Renewals
     Section 402: Emergency legislation
       In general, the Senate's emergency rule addresses three 
     issues with respect to emergency spending: the ability to 
     designate spending as an emergency, the restatement of the 
     Senate point of order with respect to the use of that 
     designation, and the exemption of defense appropriations and 
     overseas contingent operations from that point of order.
     Section 403: Supermajority Enforcement
       Section 403 of the Senate amendment extends the 60-vote 
     requirement for points of order, waivers and appeals with 
     respect to those budget-related points of order for which 
     this requirement would have expired on September 30, 2008 for 
     an additional two years (until September 30, 2010).
       Section 403 also extends the supermajority enforcement of 
     waivers and appeals to the unfunded mandates points of order 
     (section 425(a)(1) and (2) of the Congressional Budget Act of 
     1974) for five years (until September 30, 2010). For the past 
     10 years, these points of order could have been waived by a 
     simple majority vote.
     Section 404: Discretionary spending limits in the Senate
       Section 404 of the Senate amendment sets out congressional 
     discretionary spending limits for the first three years 
     covered by the 2006 budget resolution (fiscal years 2006, 
     2007 and 2008) with respect to both budget authority and 
     outlays for the first year, and budget authority for the 
     second and third years. Since the advent of statutory 
     discretionary spending limits in 1990, a majority of budget 
     resolution conference reports have included language dealing 
     with `congressional caps.'
       Section 404 of the Senate amendment sets the following 
     amounts as the discretionary spending limits:
       For fiscal year 2006: $848.1 billion in new budget 
     authority and $916.4 billion in outlays for the discretionary 
     category.
       For fiscal year 2007: $868.5 billion in new budget 
     authority for the discretionary category.
       For fiscal year 2008: $891.4 billion in new budget 
     authority for the discretionary category.
       The Senate amendment also provides for a number of cap 
     adjustments. The cap adjustments permit the chairman of the 
     Committee on the Budget to increase the discretionary 
     spending limit, the section 302(a) allocation to the 
     Committee on Appropriations, and any other appropriate levels 
     in the resolution if an appropriations bill provides 
     additional resources for the programs specified in the 
     adjustment. The resolution allows for adjustments to 
     discretionary spending limits for four program integrity 
     programs: continuing disability reviews, internal revenue 
     service tax enforcement, health care

[[Page 8305]]

     fraud and abuse control, and unemployment insurance improper 
     payments.
     Section 405: Application and effect of changes in allocations 
         and aggregates
       The Senate amendment also provides for a number of cap 
     adjustments. The cap adjustments permit resolution retains 
     language from previous resolutions clarifying the process for 
     implementing any adjustment made pursuant to the reserve 
     funds and discretionary adjustments and the status of these 
     adjusted levels. It also clarifies that the Budget Committee 
     determines scoring for purposes of points of order.
     Section 406: Adjustments to reflect changes in concepts and 
         definitions
       Section 406(a) of the Senate amendment also allows 
     adjustments for changes in budgetary concepts. It provides 
     that upon enactment of legislation that changes funding of an 
     existing program from discretionary to mandatory (or vice 
     versa) the chairman of the Committee on the Budget will 
     adjust the levels in this budget resolution (including the 
     discretionary spending limits) to reflect such a change.
       Section 406(b) sets forth a change in the way the Federal 
     Pell Grant Program should be estimated upon the adoption of 
     the FY 2006 budget resolution.
     Section 407: Limitation on long-term spending proposals
       Section 407 creates a new point of order against 
     legislation that would cause a net increase in direct 
     spending in excess of $5,000,000,000 in any of the four ten-
     year periods beginning in 2016 through 2055, as measured 
     against current out-year estimates prepared by the 
     Congressional Budget Office.
       The point of order may be waived by 60 votes. An appeal of 
     the ruling of the chair also requires 60 votes. The section 
     will remain in effect until September 30, 2010.
     Section 408: Exercise of rulemaking powers.
       The Senate amendment restates the Congress? authority to 
     legislate its rules of procedure.


                          CONFERENCE AGREEMENT

     Section 401: Restrictions on advance appropriations
       Section 401 reflects an overall limit on advance 
     appropriations of $23.158 billion in fiscal year 2007, which 
     is the same limit on advance appropriations as has been 
     included in all previous limitations on advance 
     appropriations in past budget resolutions.
       The list of permissible advances is as follows:

      ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS IN THE SENATE

       Defense: Shipbuilding and Conversion, Navy
       Interior: Elk Hills.
       Labor, HHS:
       Corporation for Public Broadcasting
       Employment and Training Administration
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Vocational and Adult Education
       Transportation, Treasury: Payment to Postal Service
       Veterans, HUD: Section 8 Renewals

      ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS IN THE HOUSE


          PART A: ADVANCE APPROPRIATIONS FOR FISCAL YEAR 2007

       Elk Hills
       Employment and Training Administration
       Education for the Disadvantaged
       School Improvement
       Child and Family Services [Head Start]
       Special Education
       Vocational and Adult Education
       Payment to Postal Service
       Section 8 Renewals
       Shipbuilding and Conversion, Navy


          PART B: ADVANCE APPROPRIATIONS FOR FISCAL YEAR 2008

       Corporation for Public Broadcasting
     Section 402: Emergency legislation
       Section 402(a) of the conference agreement largely follows 
     section 401 of the House resolution with respect to the rule 
     on emergency spending and the designation for contingency 
     operations related to the global war on terrorism.
       Section 402(b) follows the Senate amendment with regard to 
     emergency spending and its exemption for overseas contingent 
     operations.
       Section 402(c) of the conference agreement sets forth 
     common criteria for both Houses of Congress for spending that 
     may be properly defined as an emergency requirement. In order 
     to trigger the exemptions included in this section in either 
     the House of Representatives or the Senate, spending must be 
     `designated by the Congress to be emergency legislation 
     pursuant to section 402 of H. Con. Res. 95.'
     Section 403: Extension of Senate enforcement
       Section 403 of the conference agreement contains language 
     similar to section 403 of the Senate amendment. It extends 
     voting requirements applicable to Senate budget enforcement 
     procedures.
     Section 404: Discretionary spending limits in the Senate
       Section 404 of the conference agreement retains the 
     language of section 404 of the Senate amendment, with 
     adjusted figures to reflect the conference agreement.
     Section 405: Application and effect of changes in allocations 
         and aggregates
       Section 405 of the conference agreement retains the 
     language of section 403 of the House resolution (which is 
     identical to section 405 of the Senate amendment) clarifying 
     both the process for making adjustments under the reserve 
     funds and the status of the adjusted levels. It also 
     determines scoring for purposes of enforcing budget related 
     points of order.
     Section 406: Adjustments to reflect changes in concepts and 
         definitions
       The House recedes to the Senate on section 406 of the 
     Senate amendment with an amendment. Subsection 406(a) 
     authorizes the chairmen of the Committees on the Budget of 
     the House and the Senate to adjust the resolution to take 
     into account changes in budgetary concepts and definitions 
     upon enactment of such legislation.
       Subsection 406(b) retains the language from section 406 of 
     the Senate amendment regarding a change in the rules used to 
     estimate the annual cost of the Federal Pell Grant program, 
     and made it applicable in both the House of Representatives 
     and the Senate.
     Section 407: Limitation on long-term spending proposals.
       Section 407(a) requires that the Director of the 
     Congressional Budget Office prepare for the House and Senate, 
     an analysis of measures that would cause a net increase in 
     direct spending in excess of $5,000,000,000 in any of the 
     four ten-year periods beginning in 2016 through 2055.
       Section 407(b) creates a new point of order in the Senate 
     against any legislation that exceeds the threshold specified 
     in subsection (a). The point of order may be waived and the 
     rulings of the chair may be appealed by 60 votes.
       The section remains in effect until September 30, 2010.
     Section 408: Compliance with section 13301 of the Budget 
         Enforcement Act of 1990
       Section 408 of the conference agreement retains the 
     language of section 402 of the House resolution, and applies 
     it to the Senate. That section provides for the budgetary 
     treatment of discretionary spending for the Social Security 
     Administration.
     Section 409: Exercise of rulemaking powers
       In section 409, the House recedes to section 408 of the 
     Senate amendment, which affirms that the budget resolution is 
     an act of congressional rulemaking and subject to revisions 
     by either House. Section 409 of the conference agreement 
     states the authority by which Congress adopts the various 
     budgetary enforcement rules and procedures for the 
     consideration of certain legislation set out in the budget 
     resolution.
     Section 410: Treatment of allocations in the House
       This section is identical to section 405 of the House-
     passed budget resolution, and applies only in the House of 
     Representatives, and adds a clarification on the display of 
     allocations to authorizing committees made pursuant to 
     section 302(a) of the Congressional Budget Act of 1974.
     Section 411: Special procedures to achieve savings in 
         mandatory spending through 2014
       This section is identical to section 406 of the House-
     passed budget resolution, and applies only in the House of 
     Representatives.

                     SENSES OF THE HOUSE AND SENATE


                            house resolution

       The House resolution contains one section (in title IV of 
     that resolution) that included a `Sense of the House.'


                            senate amendment

       The Senate amendment contains twenty-eight sections dealing 
     with `Sense of the Senate' provisions that were adopted 
     either during the committee consideration of the resolution 
     or during consideration on the Senate floor:
       Section 501: Sense of the Senate regarding unauthorized 
     appropriations
       Section 502: Sense of the Senate regarding a commission to 
     review the performance of programs
       Section 503: Sense of the Senate regarding Tricare
       Section 504: Sense of the Senate regarding restraining 
     Medicaid growth
       Section 505: Sense of the Senate regarding tribal colleges 
     and universities
       Section 506: Sense of the Senate regarding support for the 
     President's request to concentrate Federal funds for State 
     and local homeland security assistance programs on the 
     highest threats, vulnerabilities, and needs
       Section 507: Sense of the Senate rejecting proposed 
     elimination of per diem reimbursement to State nursing homes 
     in the President's budget
       Section 508: Sense of the Senate regarding Impact Aid
       Section 509: Sense of the Senate regarding mandatory 
     agricultural programs
       Section 510: Sense of the Senate regarding social security 
     restructuring
       Section 511: Sense of the Senate that failing to address 
     social security will result in

[[Page 8306]]

     massive debt, deep benefit cuts and tax increases
       Section 512: Sense of the Senate regarding the State 
     Criminal Alien Assistance Program
       Section 513: Sense of the Senate regarding funding for 
     subsonic and hypersonic aeronautics research by the National 
     Aeronautics and Space Administration
       Section 514: Sense of the Senate concerning children with 
     HIV/AIDS
       Section 515: Sense of the Senate regarding the acquisition 
     of the next generation destroyer (DDX)
       Section 516: Sense of the Senate on reducing the tax on 
     social security benefits
       Section 517: Sense of the Senate on the crime victims fund
       Section 518: Sense of the Senate supporting funding for 
     HIDTAS
       Section 519: Sense of the Senate regarding the need for a 
     comprehensive, coordinated, and integrated national ocean 
     policy
       Section 520. United States response to global HIV/AIDS, 
     tuberculosis, and malaria
       Section 521. Offset for increases in funding for the Cops 
     Methamphetamine Enforcement and Clean Up Program
       Section 522: Sense of the Senate regarding foreign-owned 
     debt
       Section 523: Sense of the Senate regarding tax relief to 
     encourage charitable giving
       Section 524: Sense of the Senate regarding water 
     infrastructure
       Section 525: Sense of the Senate regarding funding of 
     administrative costs of Social Security Administration
       Section 526: Sense of the Senate concerning comparative 
     effectiveness studies
       Section 527: Sense of the Senate regarding the Advanced 
     Technology Program
       Section 528: Sense of the Senate with respect to pension 
     reform


                          conference agreement

       The conference agreement contains the following provisions:
       Section 501: Sense of the Senate regarding unauthorized 
     appropriations
       Section 502: Sense of the Senate regarding a commission to 
     review the performance of programs
       Section 503: Sense of the Senate regarding Tricare
       Section 504: Sense of the Senate regarding tribal colleges 
     and universities
       Section 505: Sense of the Senate regarding social security 
     restructuring
       Section 506: Sense of the Senate regarding funding for 
     subsonic and hypersonic aeronautics research by the National 
     Aeronautics and Space Administration
       Section 507: Sense of the Senate regarding the acquisition 
     of the next generation destroyer (DDX)

                              ALLOCATIONS

       As required in section 302 of the Congressional Budget Act, 
     the joint statement of managers includes an allocation, based 
     on the conference agreement, of total budget authority and 
     total budget outlays among each of the appropriate 
     committees. The allocations are as follow:

   ALLOCATION OF SPENDING AUTHORITY TO HOUSE APPROPRIATIONS COMMITTEE
                        [In millions of dollars]
------------------------------------------------------------------------
                                               2005            2006
------------------------------------------------------------------------
Discretionary Action:
    BA..................................         840,036         843,020
    OT..................................         929,520         916,836
Current Law Mandatory:
    BA..................................         483,881         528,504
    OT..................................         460,908         510,843
------------------------------------------------------------------------


                 ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES OTHER THAN APPROPRIATIONS
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                   Total  2005-                     Total 2006-
                                                       2005            2009            2006            2010
----------------------------------------------------------------------------------------------------------------
              Agriculture Committee
 
Current Law:
    BA..........................................          25,410         101,716          25,882          82,931
    OT..........................................          25,320         101,173          25,244          82,359
Reconciliation:
    BA..........................................  ..............  ..............            -173          -3,000
    OT..........................................  ..............  ..............            -173          -3,000
Reauthorizations:
    BA..........................................  ..............          82,160  ..............         131,495
    OT..........................................  ..............          80,586  ..............         129,886
 
            Armed Services Committee
 
Current Law:
    BA..........................................          85,355         473,465          91,209         494,600
    OT..........................................          85,245         473,045          91,129         494,215
 
    Committee on Education and the Workforce
 
Current Law:
    BA..........................................           9,726          47,046           9,080          47,155
    OT..........................................           9,564          46,462           8,215          47,512
Discretionary Action:
    BA..........................................  ..............             400             100             500
    OT..........................................  ..............             400             100             500
Reconciliation:
    BA..........................................  ..............  ..............            -966          -8,971
    OT..........................................  ..............  ..............            -992         -12,651
Reauthorizations:
    BA..........................................  ..............          11,219           2,720          14,657
    OT..........................................  ..............           8,797           1,088          12,061
 
          Energy and Commerce Committee
 
Current Law:
    BA..........................................         161,936       1,155,178         207,337       1,293,242
    OT..........................................         161,946       1,157,483         207,955       1,295,935
Discretionary Action:
    BA..........................................  ..............           1,525             100           2,000
    OT..........................................  ..............           1,525             100           2,000
Reconciliation:
    BA..........................................  ..............  ..............              -2         -14,844
    OT..........................................  ..............  ..............              -2         -14,734
Reauthorizations:
    BA..........................................  ..............          10,080  ..............          15,120
    OT..........................................  ..............           5,985  ..............          10,845
 
          Financial Services Committee
 
Current Law:
    BA..........................................           5,364          17,669           3,193          15,258
    OT..........................................           3,218          -2,737            -116          -8,873
Reconciliation:
    BA..........................................  ..............  ..............             -60            -300
    OT..........................................  ..............  ..............             -30            -470
 
           Government Reform Committee
 
Current Law:
    BA..........................................          70,524         382,713          75,531         398,024
    OT..........................................          69,395         369,316          70,624         382,349
Discretionary Action:
    BA..........................................  ..............              50              50              50

[[Page 8307]]

 
    OT..........................................  ..............              50              50              50
 
        Committee on House Administration
 
Current Law:
    BA..........................................              77             370              72             366
    OT..........................................              20             325              15             323
 
         Committee on Homeland Security
 
Current Law:
    BA..........................................           1,217           6,054           1,262           6,051
    OT..........................................           1,109           6,057           1,157           6,205
 
        International Relations Committee
 
Current Law:
    BA..........................................          10,782          61,081          11,532          63,726
    OT..........................................          11,051          59,403          11,939          60,966
 
               Judiciary Committee
 
Current Law:
    BA..........................................           5,192          27,222           6,519          27,264
    OT..........................................           5,159          27,013           5,664          29,983
Discretionary Action:
    BA..........................................  ..............               6               6               6
    OT..........................................  ..............               6               6               6
Reconciliation:
    BA..........................................  ..............  ..............             -60            -300
    OT..........................................  ..............  ..............             -60            -300
 
               Resources Committee
 
Current Law:
    BA..........................................           5,612          24,776           5,245          22,912
    OT..........................................           4,354          22,534           4,699          22,350
Discretionary Action:
    BA..........................................               6              45               8              50
    OT..........................................               6              45               8              50
Reconciliation:
    BA..........................................  ..............  ..............  ..............          -2,400
    Ot..........................................  ..............  ..............  ..............          -2,400
 
                Science Committee
 
Current Law:
    BA..........................................             119             604             131             606
    OT..........................................              79             442              80             467
 
            Small Business Committee
 
Current Law:
    BA..........................................           1,702           1,702  ..............  ..............
    OT..........................................           1,702           1,702  ..............  ..............
 
   Transportation and Infrastructure Committee
 
Current Law:
    BA..........................................          41,675         104,284          17,141          77,176
    Ot..........................................          11,526          67,912          14,097          71,000
Discretionary Action:
    BA..........................................           3,488          12,238           3,027           4,107
    OT..........................................  ..............  ..............  ..............  ..............
Reconciliation:
    BA..........................................  ..............  ..............             -12            -100
    OT..........................................  ..............  ..............             -12            -103
Reauthorizations:
    BA..........................................          14,449         195,237          43,347         227,835
    OT..........................................              58           1,955             262           2,515
 
           Veterans' Affairs Committee
 
Current Law:
    BA..........................................           2,162           7,265           1,293           6,327
    OT..........................................           2,191           7,438           1,353           6,498
Reauthorizations:
    BA..........................................  ..............           5,890             558           9,011
    OT..........................................  ..............           5,726             538           8,796
 
            Ways and Means Committee
 
Current Law:
    BA..........................................         653,873       3,796,797         690,460       4,066,577
    OT..........................................         656,155       3,803,436         692,761       4,071,184
Discretionary Action:
    BA..........................................             554           1,800             350           1,537
    OT..........................................              64           1,558             346           1,914
Reconciliation:
    BA..........................................  ..............  ..............            -250          -1,000
    OT..........................................  ..............  ..............            -250          -1,000
Reauthorizations:
    BA..........................................           7,954          89,139          19,622         102,030
    OT..........................................           5,681          84,462          17,299          99,617
----------------------------------------------------------------------------------------------------------------


SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT
                                             BUDGET YEAR TOTAL 2005
                                            [in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Direct spending jurisdiction    Entitlements funded in annual
                                                 --------------------------------       appropriaitons acts
                    Committee                                                    -------------------------------
                                                      Budget          Outlays         Budget
                                                     authority                       authority        Outlays
----------------------------------------------------------------------------------------------------------------
Appropriations
    General Purpose Discretionary...............         840.036         929.520
        Memo:
            on-budget...........................         835.610         925.115
            off-budget..........................           4.426           4.405
Agriculture, Nutrition, and Forestry............          25.258          25.148          71.954          49.563
Armed Services..................................          85.351          85.240           0.041           0.061
Banking, Housing and Urban Affairs..............          14.779           6.052           0.000          -0.047
Commerce, Science, and Transportation...........          13.635           8.218           1.082           0.889
Energy and Natural Resources....................           5.124           3.922           0.004           0.005
Environment and Public Works....................          39.395           2.056           0.000           0.000
Finance.........................................         820.963         821.355         350.443         350.266

[[Page 8308]]

 
Foreign Relations...............................          10.785          11.054           0.172           0.172
Governmental Affairs............................          71.750          70.621          18.219          18.219
Judiciary.......................................           6.009           6.076           0.578           0.564
Health, Education, Labor, and Pensions..........          13.952          13.946           3.988           3.889
Rules and Administration........................           0.076           0.019           0.113           0.112
Intelligence....................................           0.000           0.000           0.239           0.239
Veterans' Affairs...............................           2.161           2.190          36.996          36.924
Indian Affairs..................................           0.555           0.562           0.000           0.000
Small Business..................................           1.702           1.702           0.000           0.000
Unassigned to Committee.........................        -434.360        -420.248           0.000           0.000
                                                 ---------------------------------------------------------------
    Total.......................................         677.135         637.913         483.829         460.856
----------------------------------------------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                           ACT--BUDGET YEAR TOTAL 2006
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Direct spending jurisdiction    Entitlements funded in annual
                                                 --------------------------------       appropriations acts
                    Committee                                                    -------------------------------
                                                      Budget          Outlays         Budget
                                                     authority                       authority        Outlays
----------------------------------------------------------------------------------------------------------------
Appropriations:
    General Purpose Discretionary...............         842.265         916.081  ..............  ..............
        Memo:
            on-budget...........................         837.689         911.494  ..............  ..............
            off-budget..........................           4.576           4.587  ..............  ..............
Agriculture, Nutrition, and Forestry............          25.721          25.061          69.535          50.456
Armed Services..................................          91.206          91.125           0.040           0.060
Banking, Housing and Urban Affairs..............          13.507           2.957           0.000          -0.014
Commerce, Science, and Transportation...........          13.078           7.575           0.928           0.921
Energy and Natural Resources....................           4.600           4.135           0.054           0.060
Environment and Public Works....................          39.389           2.154           0.000           0.000
Finance.........................................         921.381         923.335         401.199         401.160
Foreign Relations...............................          11.532          11.939           0.174           0.174
Governmental Affairs............................          74.698          71.791          18.611          18.611
Judiciary.......................................           7.387           6.528           0.580           0.592
Health, Education, Labor, and Pensions..........          13.180          11.578           4.100           3.979
Rules and Administration........................           0.072           0.015           0.118           0.117
Intelligence....................................           0.000           0.000           0.245           0.245
Veterans' Affairs...............................           1.293           1.353          36.198          36.108
Indian Affairs..................................           0.559           0.547           0.000           0.000
Small Business..................................           0.000           0.000           0.000           0.000
Unassigned to Committee.........................        -496.329        -484.403           0.000           0.000
                                                 ---------------------------------------------------------------
    TOTAL.......................................         721.274         675.690         531.782         512.469
----------------------------------------------------------------------------------------------------------------


SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT
                                             5-YEAR TOTAL: 2006-2010
                                            [in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Direct spending jurisdiction    Entitlements funded in annual
                                                 --------------------------------       appropriations acts
                    Committee                                                    -------------------------------
                                                      Budget          Outlays         Budget
                                                     authority                       authority        Outlays
----------------------------------------------------------------------------------------------------------------
Agriculture, Nutrition, and Forestry............         111.747         111.108         341.876         260.136
Armed Services..................................         494.585         494.199           0.200           0.270
Banking, Housing and Urban Affairs..............          74.258           9.668           0.000          -0.028
Commerce, Science, and Transportation...........          68.875          40.886           5.076           5.054
Energy and Natural Resources....................          19.461          18.898           0.268           0.277
Environment and Public Works....................         180.812           9.994           0.000           0.000
Finance.........................................        5505.551        5517.365        2424.576        2423.728
Foreign Relations...............................          63.726          60.966           0.794           0.794
Governmental Affairs............................         402.936         387.261          99.879          99.879
Judiciary.......................................          32.071          31.766           2.941           2.979
Health, Education, Labor, and Pensions..........          68.205          62.245          21.289          20.734
Rules and Administration........................           0.366           0.323           0.640           0.639
Intelligence....................................           0.000           0.000           1.314           1.314
Veterans' Affairs...............................           6.327           6.498         185.814         185.182
Indian Affairs..................................           2.555           2.682           0.000           0.000
Small Business..................................           0.000           0.000           0.000           0.000
----------------------------------------------------------------------------------------------------------------

   Pay-as-You-Go Scorecard for the Senate Reflecting Levels for the 
                         Conference Agreement:

                 [In billions of dollars, fiscal years]

2005..............................................................0.436
2006.............................................................16.849
2006-2010........................................................75.580
2011-2015.......................................................274.999

                          Economic Assumptions

       Section 301(g)(2) of the Congressional Budget Act requires 
     that the joint explanatory statement accompanying a 
     conference report on a budget resolution set forth the common 
     economic assumptions upon which the joint statement and 
     conference report are based. The Conference Agreement is 
     built upon the economic forecasts developed by the 
     Congressional Budget Office and presented in CBO's `The 
     Budget and Economic Outlook: Fiscal Years 2006-2015' (January 
     2005).


                            house resolution

       CBO's economic assumptions were used.


                            senate amendment

       CBO's economic assumptions were used.


                          conference agreement

       CBO's economic assumptions were used.

                                  ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                           [Calendar years 2005-2010]
----------------------------------------------------------------------------------------------------------------
                                                   2005       2006       2007       2008       2009       2010
----------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year)...        3.8        3.7        3.7        3.4        3.1        2.9

[[Page 8309]]

 
GDP Price Index (percentage change year over          1.8        1.5        1.7        1.8        1.8        1.8
 year)........................................
Consumer Price Index (percentage change year          2.4        1.9        2.1        2.2        2.2        2.2
 over year)...................................
Unemployment Rate (percent, annual average)...        5.2        5.2        5.2        5.2        5.2        5.2
3-month Treasury Bill Rate (percent, annual           2.8        4.0        4.6        4.6        4.6        4.6
 average).....................................
10-year Treasury Note Yield (percent, annual          4.8        5.4        5.5        5.5        5.5        5.5
 average).....................................
----------------------------------------------------------------------------------------------------------------

 PUBLIC DEBT: AMENDING THE STATUTORY LIMIT PURSUANT TO HOUSE RULE XXVII

       The adoption of this conference agreement by the two Houses 
     would result in the engrossment of a House Joint Resolution 
     adjusting the level of the statutory limit on the public debt 
     pursuant to House Rule XXVII. In consonance with clause 3 of 
     that rule, the conferees contemplate a joint resolution of 
     the following form:
       Resolved, by the Senate and the House of Representatives of 
     the United States of America in Congress assembled, That 
     subsection (b) of section 3101 of title 31, United States 
     Code, is amended by striking out the dollar limitation 
     contained in such subsection and inserting in lieu thereof 
     $8,965,000,000,000.
       If the joint resolution is enacted to raise the debt limit 
     to the level contemplated by this conference agreement, the 
     limit will be increased from $8.184 trillion to $8.965 
     trillion, an increase of $781 billion.
       Legislative jurisdiction over the public debt remains with 
     the Finance Committee in the Senate and the Committee on Ways 
     and Means in the House.
     Jim Nussle,
     Jim Ryun,
                                Managers on the Part of the House.

     Judd Gregg,
     Pete Domenici,
     Chuck Grassley,
     Wayne Allard,
     Managers on the Part of the Senate.

                          ____________________