[House Report 108-446]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-446

======================================================================

 
PROVIDING FOR FURTHER CONSIDERATION OF HOUSE CONCURRENT RESOLUTION 393, 
      THE CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2005

                                _______
                                

   March 24, 2004.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

Mr. Hastings of Washington, from the Committee on Rules, submitted the 
                               following

                              R E P O R T

                       [To accompany H. Res. 574]

    The Committee on Rules, having had under consideration 
House Resolution 574, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for further consideration of House 
Concurrent Resolution 393, the Concurrent Resolution on the 
Budget for Fiscal Year 2005, under a structured rule. The rule 
makes in order only those amendments printed in this report 
which may be offered only in the order printed in this report, 
may be offered only by a Member designated in this report, 
shall be considered as read, shall be debatable for the time 
specified in this report equally divided and controlled by the 
proponent and an opponent, and shall not be subject to 
amendment.
    The rule waives all points of order against the amendments 
printed in this report, except that the adoption of an 
amendment in the nature of a substitute shall constitute the 
conclusion of consideration of the concurrent resolution for 
amendment.
    The rule provides, upon the conclusion of consideration of 
the concurrent resolution for amendment, for a final period of 
general debate not to exceed 10 minutes equally divided and 
controlled by the chairman and ranking minority member of the 
Committee on the Budget. The rule permits the chairman of the 
Budget Committee to offer amendments in the House to achieve 
mathematical consistency.
    Finally, the rule provides that the concurrent resolution 
shall not be subject to a demand for division of the question 
of its adoption.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against the amendments 
printed in this report is necessary, because several of the 
amendments are in violation of clause 10 of rule XVIII, which 
requires that amendments to the budget resolution be 
mathematically consistent and prohibits amendments from 
proposing to change the appropriate level of the public debt 
set forth in the concurrent resolution, as reported.

     OBLIGATIONS UNDER SEC. 301(C) OF THE CONGRESSIONAL BUDGET ACT

    The Committee notes that certain features of the concurrent 
resolution originated by the Committee on the Budget might 
constitute `procedure or matter which has the effect of 
changing any rule of the House' within the meaning of section 
301(c) of the Budget Act. The Committee has reviewed those 
features of the concurrent resolution in the course of 
originating this special order of business for its 
consideration by the House. The Committee believes that this 
review adequately meets the needs of the Committee and obviates 
any practical need to refer the concurrent resolution to the 
Committee.

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee record vote No. 228

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. Frost.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Thompson of California which allows for a PAYGO point of order 
in the House on any legislation, direct spending or revenue, 
which has the effect of increasing the on-budget deficit.
    Results: Defeated 3 to 8.
    Vote by Members: Goss--Nay; Pryce--Nay; Diaz-Balart--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Frost--Yea; McGovern--Yea; Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 229

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. Frost.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Edwards which increases veterans health care (Veterans Benefits 
Services (700)) by $1.266 billion in FY'05. The increase is 
offset by increasing the recommended level of Federal revenues 
by $2.638 billion in FY'05, $264 million in FY'06, $12 million 
in FY'07, and $2 million in FY'08, as well as reduces the 
amounts by which the aggregate levels of Federal revenues 
should be reduced by the same amount for each fiscal year.
    Results: Defeated 3 to 8.
    Vote by Members: Goss--Nay; Pryce--Nay; Diaz-Balart--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Frost--Yea; McGovern--Yea; Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 230

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. Frost.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Edwards which provides $2.5 billion in budget authority in 
FY'05 (Veterans Benefits Services (700)) for access to TRICARE 
for reserve personnel; improved housing for armed forces; an 
increase in imminent danger pay and family separation 
allowance; targeted pay raises for senior enlisted personnel; 
and to provide for the families of service men and women. The 
increase is offset by increasing the recommended level of 
Federal revenues by $2.704 billion in FY'05, $1.286 billion in 
FY'06, $642 million in FY'07, $228 million in FY'08, and $54 
million in FY'09, as well as reduces the amounts by which the 
aggregate levels of Federal revenues should be reduced by the 
same amount for each fiscal year.
    Results: Defeated 3 to 8.
    Vote by Members: Goss--Nay; Pryce--Nay; Diaz-Balart--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Frost--Yea; McGovern--Yea; Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 231

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. Frost.
    Summary of motion: To make in order and provide the 
appropriate waivers the amendment offered by Representative 
Edwards which increases mandatory funds for Defense (050) by 
$500 million over five years to restore survivor benefits for 
military retirees to 55 percent of the retired pay of the 
military service member. The increase is offset by increasing 
the recommended level of Federal revenues by $180 million in 
FY'06, $104 million in FY'07, $142 million in FY'08, and $572 
million in FY'09, as well as reduces the amounts by which the 
aggregate levels of Federal revenues should be reduced by the 
same amount for each fiscal year.
    Results: Defeated 3 to 8.
    Vote by Members: Goss--Nay; Pryce--Nay; Diaz-Balart--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Frost--Yea; McGovern--Yea; Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 232

    Date: March 24, 2004
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Obey which provides an additional $13.2 billion for key 
priority areas which include: $2 billion for protecting the 
homeland; $2.3 billion for defense and veterans benefits; $5.7 
billion for creating opportunities for our children and young 
adults; $200 million to assist the long term unemployed; $200 
million to protect public health; $1.27 billion to provide 
healthcare for children and other vulnerable populations; $1 
billion to provide clean water and open spaces for future 
generations; and $530 million to strengthen states and local 
communities. Provides for $6 billion of additional deficit 
reduction. The amendment is offset by capping tax cuts for the 
wealthiest 2 percent of taxpayers (increases the recommended 
level of Federal revenues by $19.2 billion in FY'05, as well as 
reduces the amounts by which the aggregate levels of Federal 
revenues should be reduced by the same amount in FY'05). 
Includes reconciliation instructions to Ways and Means and 
Senate Finance to report bills by October 1, 2004, that would 
increase revenues by $19.2 billion.
    Results: Defeated 3 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; McGovern--Yea; Hastings (FL)--Yea; 
Dreier--Nay.

Rules Committee record vote No. 233

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers the amendment offered by Representative 
Schiff which provides an additional $1.3 billion in FY'05 to 
the Administration of Justice (750). The amendment allows $700 
million in additional funding for the Community Oriented 
Policing Services (COPS) program, $400 million for the Local 
Law Enforcement Block Grant Program and Edward Byrne grants, 
$200 million for programs within the Office of Juvenile Justice 
and Delinquency Prevention, and $25 million for the High 
Intensity Drug Trafficking Areas program. The amendment is 
offset by a slight reduction (8.7 percent) of the tax cuts 
received under the Economic Growth and Tax Relief 
Reconciliation Act of 2001 and the Jobs and Growth Tax 
Reconciliation Act of 2003 for people with annual adjusted 
gross incomes of more than $1 million leaving them with tax 
cuts averaging $116,450 (increases the recommended level of 
Federal revenues by $950 million in FY'05, $700 million in 
FY'06, $550 million in FY'07, $350 million in FY'08, and $50 
million in FY'09, as well as reduces the amounts by which the 
aggregate levels of Federal revenues should be reduced by the 
same amount for each fiscal year).
    Results: Defeated 4 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; Slaughter--Yea; McGovern--Yea; 
Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 234

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Emanuel which increases by $1.75 billion Education, Training, 
Employment, and Social Services (500) in FY'06, in order to 
extend the Tuition Deduction for Higher Education for 1 year. 
Offset by reducing the ``SUV'' loophole (increases the 
recommended level of Federal revenues by $875 million in FY'05 
and $875 million in FY'06, as well as reduces the amounts by 
which the aggregate levels of Federal revenues should be 
reduced by the same amount for each fiscal year).
    Results: Defeated 4 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; Slaughter--Yea; McGovern--Yea; 
Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 235

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. Hastings of Florida.
    Summary of motion: to make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Miller of North Carolina which increases Commerce and Housing 
Credit (370) by $203 million in FY'05 to provide an additional 
$132 million for Small Business Administration business loans 
and business assistance programs, and to increase funding for 
the Manufacturing Extension Partnership by $71 million. 
Increases Education, Training, Employment, and Social Services 
(500) by $400 million in FY'05 to reflect an increase for adult 
training and dislocated worker programs ($150 million) and fund 
the Community College Initiative ($250 million). Increases 
Income Security (600) by $6.494 billion in FY'04 to reflect 
continuation of the Federal Temporary Extended Unemployment 
Compensation program through June 30, 2004. Offset by 
increasing the recommended level of Federal revenues by $139 
million in FY'05, $348 million in FY'06, $88 million in FY'07, 
$16 million in FY'08, and $6 million in FY'09, as well as 
reduces the amounts by which the aggregate levels of Federal 
revenues should be reduced by the same amount for each fiscal 
year.
    Results: Defeated 4 to 8.
    Vote by Members: Goss--Nay; Linder--Nay; Diaz-Balart--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Frost--Yea; Slaughter--Yea; McGovern--Yea; Hastings (FL)--Yea; 
Dreier--Nay.

Rules Committee record vote No. 236

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. Hastings of Florida.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Woolsey which adds $3.0 billion for No Child Left Behind (NCLB) 
programs, raises the Federal share of special education funding 
to 40 percent by 2012, and raises the maximum Pell Grant award 
to $4,500 for 2005. Includes a partial reduction of the tax 
cuts received under the Economic Growth and Tax Relief 
Reconciliation Act of 2001 and the Jobs and Growth Tax 
Reconciliation Act of 2003, for people with annual adjusted 
gross incomes of more than one million dollars. Assumes funding 
of $64.6 billion for discretionary programs, within the 
Department of Education for 2005, including $28.5 billion for 
programs funded under NCLB. The resolution thus provides a 
total increase of $7.3 billion over the President's level. The 
resolution increases funding for NCLB programs by $4.0 billion 
over the 2004 enacted level, for a total of $28.5 billion. 
Provides for a 22.8% Federal share of special education funding 
for 2005.
    Results: Defeated 4 to 8.
    Vote by Members: Goss--Nay; Linder--Nay; Diaz-Balart--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Frost--Yea; Slaughter--Yea; McGovern--Yea; Hastings (FL)--Yea; 
Dreier--Nay.

Rules Committee record vote No. 237

    Date: March 24, 2004.
    Measure: H. Con. Res. 393, Concurrent Resolution on the 
Budget, Fiscal Year 2005.
    Motion by: Mr. Hastings of Florida.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
DeLauro which provides reconciliation instructions directing 
Ways and Means to report a bill by July 15, 2004, increasing 
outlays by $1.7 billion for FY'05 and reducing revenues by 
$2.377 billion for FY'05. Reconciliation would provide for an 
increase in the child tax credit refundability from 10 percent 
to 15 percent for families earning between $10,500 and $26,625. 
Includes combat pay in calculations of the income threshold for 
members of the military serving in Iraq and Afghanistan, to 
ensure that military families are able to benefit from the 
child tax credit. Offset by closing the corporate expatriates 
loophole in the tax code.
    Results: Defeated 4 to 8.
    Vote by Members: Goss--Nay; Linder--Nay; Diaz-Balart--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Frost--Yea; Slaughter--Yea; McGovern--Yea; Hastings (FL)--Yea; 
Dreier--Nay.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    (Summaries derived from information provided by the 
amendment sponsor.)
    1. Scott (VA): CBC Amendment in the Nature of a Substitute. 
The Congressional Black Caucus fiscal year 2005 budget promotes 
improvements for homeland security, provides necessary benefits 
for our veterans, addresses he domestic challenges of educating 
our youth and growing our economy and tackles the international 
challenges of poverty, disease and sustainable development. 
Provides the necessary resources for the Department of Homeland 
Security to begin fully protecting America's rails and ports, 
and provides significant resources for our first responders--
the first line of defense in the event of an attack. Provides 
vital funding to fulfill our promises to our veterans as well 
as our current troops and reservists fighting on battlefields 
around the world. Provides for job training and workforce 
development and a four-week extension for unemployment 
benefits. Provides additional funding for job creation programs 
under the Small Business Administration. Restores cuts and 
funds increases in specific budget function areas. These 
include investments in providing funding for health insurance 
for the uninsured, fully funding the fiscal year 2005 
authorization level for No Child Left Behind, doubling the 
federal funding for Historically Black Colleges and 
Universities and Hispanic Serving Institutions, increasing the 
Pell Grant Allotment for college students, and funding 
resources for law enforcement initiatives such as COPS, local 
law enforcement block grants, and juvenile justice programs. 
Raises revenues by rescinding the tax cuts from 2001 and 2003 
for individuals making more than $200,000 in gross income and 
by closing tax loopholes, abusive shelters, and methods of tax 
avoidance. Protects the child-care tax credit, the elimination 
of the marriage penalty and the 10% tax bracket. Provides 
funding for deficit reduction. Reduces funding for the 
Ballistic Missile Defense program and estimates savings in 
defense contractor overcharges. (40 minutes)
    2. Hill/Stenholm: Blue Dog Amendment in the nature of a 
Substitute. The Blue Dog budget combines the spending restraint 
in the President's budget with strong budget enforcement 
measures and responsible tax policy to reduce the deficit and 
balance the budget by 2012. The budget focuses on policies for 
next year, deferring action on additional tax cuts or other 
proposals that would create additional budgetary obligations in 
future years based on projections until Congress and the 
President have taken action to reduce the deficit. Implements a 
combination of spending restraint, restructuring of enacted tax 
cuts and making extension of tax cuts after 2010 subject to 
paygo rules to reduce the deficit and achieve a balanced budget 
by 2012. Reduces deficit by one half in two years and to one 
third of it's current size by 2010. Requires the House to have 
a separate vote on legislation increasing the debt limit by 
$150 billion. Restricts further increases in the debt limit, 
other than increases necessary to meet obligations for military 
operations, to no more than $100 billion at a time until CBO 
certifies that the budget on path to achieve unified balance by 
2012. Extends pay as you go rules for all legislation which 
would increase the deficit through increases in mandatory 
spending or reductions in revenues. Establishes discretionary 
spending limits enforced by sequestration for the next two 
fiscal years at the levels proposed by the President. Requires 
separate vote in the House to waive budget rules, including 
paygo rules and discretionary spending limits. Establishes a 
point of order against legislation with costs that begin 
outside the budget window. Calls for President and Congress to 
consider changes to prescription drug legislation if actual 
costs are above the $400 billion in the budget last year. Calls 
for President and Congress to consider legislation offsetting 
the increase in the deficit if actual revenues are below the 
levels assumed in the budget last year. Prohibits the use of 
``directed scorekeeping'' in which legislation directs CBO to 
use certain assumptions to provide a more favorable budget 
estimate. Requires that the Congressional Budget Office provide 
an estimate of the macro-economic effect of legislation 
increasing or reducing the budget deficit. Discretionary 
spending: Sets overall discretionary spending totals at the 
levels recommended by the President; Sets aside $50 billion for 
a supplemental request by the President for military operations 
in Iraq and Afghanistan; Increases funding for defense in 2005 
by $26.5 billion above 2004 enacted levels (excluding 
supplemental); Reallocate funding among budget functions to 
provide more funding for education, discretionary health care 
and veterans; and allows spending levels to be adjusted for the 
highway bill reauthorization if the legislation provides 
increases in funding that are fully offset. The Blue Dog budget 
restructures tax cuts to benefit middle class. Extends family 
tax relief expiring after 2004 (full child tax credit, marriage 
penalty relief, expanded 10% bracket) for one year, with 
further extensions subject to paygo. Assumes estate tax relief 
for family farms and small businesses. Suspends reductions in 
top two marginal tax rates through 2010. Allows additional tax 
cuts (energy bill, etc) if the costs are offset. Congress could 
extend expiring tax cuts if they are offset under paygo rules. 
Congress could make tax cuts permanent if the budget is 
balanced and making the tax cuts permanent would not put the 
budget back into deficit. Calls for revenue neutral reforms of 
the AMT to protect middle income taxpayers. The Blue Dog budget 
also provides for: the establishment of a reserve fund for 
legislation improving access to health insurance by the 
uninsured if the legislation is fully offset; and the 
establishment of a reserve fund which would provide additional 
funding for local law enforcement if the House approves 
legislation for new spectrum auctions. (40 minutes)
    3. Hensarling: RSC Amendment in the Nature of a Substitute. 
The Republican Study Committee amendment replaces the current 
19 functional categories with four functions: Defense 
Discretionary, Homeland Security, Non-Defense Discretionary and 
Mandatory Spending, and Interest. Includes Iraq Operations 
Reserve Fund. Includes Budget Committee number on discretionary 
Defense, but creates a one-way firewall that locks in that 
level as minimum amount of funding and permits non-defense 
spending to be shifted towards defense. Includes Budget 
Committee number for discretionary Homeland Security. Reduces 
non-security discretionary spending by 1% compared to last 
year's level (Budget Committee will call for a freeze, a 
difference of approximately $6.1 billion in the first year). 
Includes reconciliation instructions reducing the rate of 
growth of non-Social Security mandatory spending by 1%. 
Chairmen would be permitted to apply the savings unevenly 
across mandatory programs with particular emphasis on exempting 
earned entitlement programs (A savings of approximately $7.3 
billion in the first year compared to the Budget Committee). 
Assumes the President's number for tax relief over the next 
five years (Budget Committee calls for $152.6 billion in tax 
relief, $30 billion less than the President's Budget over five 
years). Calls for two additional reconciliation bills, one to 
extend expiring tax provisions and a second for new tax relief 
proposals. Provides a definition for emergency spending in the 
Budget Resolution that will be enforceable via a new point of 
order. Requires a stand-alone vote to waive any point of order 
that a bill, joint resolution, amendment, motion or conference 
report is in violation of the Budget Resolution. Create 
``Family Budget Protection Accounts'' that allow Congress to 
target spending during the appropriations and direct spending 
process and redirect that spending foe deficit reduction at the 
end of the fiscal year. Includes a sense of Congress on overall 
budget process reform. (40 minutes)
    4. Spratt: Democratic Leadership Amendment in the Nature of 
a Substitute. Achieves balance by 2012 and contains smaller 
deficits than the Republican budget in every year. The 
Democratic leadership budget provides more funds than the 
Republican budget for important domestic priorities, such as 
education, veterans, the environment, and homeland security. 
The Democratic budget also extends middle-class tax cuts such 
as the marriage penalty relief, the child tax credit, 
Alternative Minimum Tax relief and the 10 percent individual 
tax bracket. Finally, the Democratic budget reimposes and 
complies with the pay-as-you-go budget enforcement rule which 
helped wipe out the deficit and achieve surpluses in the 1990s. 
PAYGO requires that any increase in tax cuts or spending be 
fully offset. (60 minutes)

                    TEXT OF AMENDMENTS MADE IN ORDER

    1. An Amendment in the Nature of a Substitute To Be Offered by 
  Representative Scott of Virginia, or His Designee, Debatable for 40 
                                Minutes

  Strike all after the resolving clause and insert the 
following:

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2005.

  The Congress declares that the concurrent resolution on the 
budget for fiscal year 2005 is hereby established and that the 
appropriate levels for fiscal years 2006 through 2009 are 
hereby set forth.

SEC. 2. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2005 through 2009:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2005: $1,492,715,000,000.
                          Fiscal year 2006: $1,656,735,000,000.
                          Fiscal year 2007: $1,760,168,000,000.
                          Fiscal year 2008: $1,857,859,000,000.
                          Fiscal year 2009: $1,963,833,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be increased are as 
                follows:
                          Fiscal year 2005: $15,581,000,000.
                          Fiscal year 2006: $2,554,000,000.
                          Fiscal year 2007: $5,224,000,000.
                          Fiscal year 2008: $12,069,000,000.
                          Fiscal year 2009: $10,773,000,000.
          (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: $2,040,121,000,000.
                  Fiscal year 2006: $2,099,869,000,000.
                  Fiscal year 2007: $2,221,225,000,000.
                  Fiscal year 2008: $2,338,667,000,000.
                  Fiscal year 2009: $2,457,855,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2005: $2,022,269,000,000.
                  Fiscal year 2006: $2,111,755,000,000.
                  Fiscal year 2007: $2,196,982,000,000.
                  Fiscal year 2008: $2,303,025,000,000.
                  Fiscal year 2009: $2,419,950,000,000.
          (4) Deficits.--For purposes of the enforcement of 
        this resolution, the amounts of the deficits (on-
        budget) are as follows:
                  Fiscal year 2005: -$529,554,000,000.
                  Fiscal year 2006: -$455,020,000,000.
                  Fiscal year 2007: -$436,814,000,000.
                  Fiscal year 2008: -$445,166,000,000.
                  Fiscal year 2009: -$456,117,000,000.
          (5) Public debt.--The appropriate levels of the 
        public debt are as follows:
                  Fiscal year 2005: $8,066,000,000,000.
                  Fiscal year 2006: $8,645,000,000,000.
                  Fiscal year 2007: $9,204,000,000,000.
                  Fiscal year 2008: $9,770,000,000,000.
                  Fiscal year 2009: $10,351,000,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2005: $4,754,000,000,000.
                  Fiscal year 2006: $5,030,000,000,000.
                  Fiscal year 2007: $5,272,000,000,000.
                  Fiscal year 2008: $5,507,000,000,000.
                  Fiscal year 2009: $5,739,000,000,000.

SEC. 3. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2005 through 2009 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $408,486,000,000.
                          (B) Outlays, $439,979,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $430,694,000,000.
                          (B) Outlays, $428,774,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $451,728,000,000.
                          (B) Outlays, $434,219,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $473,293,000,000.
                          (B) Outlays, $453,061,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $494,923,000,000.
                          (B) Outlays, $473,956,000,000.
          (2) Homeland Security (100):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $36,531,000,000.
                          (B) Outlays, $31,552,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $35,902,000,000.
                          (B) Outlays, $35,421,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $37,628,000,000.
                          (B) Outlays, $38,004,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $39,083,000,000.
                          (B) Outlays, $39,478,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $43,264,000,000.
                          (B) Outlays, $41,148,000,000.
          (3) International Affairs (150):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $28,329,000,000.
                          (B) Outlays, $33,616,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $29,585,000,000.
                          (B) Outlays, $31,282,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $29,745,000,000.
                          (B) Outlays, $28,258,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $29,904,000,000.
                          (B) Outlays, $27,036,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $30,064,000,000.
                          (B) Outlays, $26,925,000,000.
          (4) General Science, Space, and Technology (250):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $22,822,000,000.
                          (B) Outlays, $22,458,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $22,936,000,000.
                          (B) Outlays, $22,691,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $23,051,000,000.
                          (B) Outlays, $22,752,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $23,166,000,000.
                          (B) Outlays, $22,772,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $23,283,000,000.
                          (B) Outlays, $22,872,000,000.
          (5) Energy (270):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $2,863,000,000.
                          (B) Outlays, $1,201,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $2,604,000,000.
                          (B) Outlays, $1,397,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $2,583,000,000.
                          (B) Outlays, $1,040,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $2,629,000,000.
                          (B) Outlays, $662,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $2,285,000,000.
                          (B) Outlays, $891,000,000.
          (6) Natural Resources and Environment (300):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $31,460,000,000.
                          (B) Outlays, $31,032,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $31,817,000,000.
                          (B) Outlays, $32,120,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $32,147,000,000.
                          (B) Outlays, $32,385,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $32,353,000,000.
                          (B) Outlays, $32,368,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $33,030,000,000.
                          (B) Outlays, $33,056,000,000.
          (7) Agriculture (350):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $21,246,000,000.
                          (B) Outlays, $20,632,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $23,534,000,000.
                          (B) Outlays, $22,461,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $24,439,000,000.
                          (B) Outlays, $23,354,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $24,203,000,000.
                          (B) Outlays, $23,113,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $25,065,000,000.
                          (B) Outlays, $24,112,000,000.
          (8) Commerce and Housing Credit (370):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $10,792,000,000.
                          (B) Outlays, $5,782,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $10,242,000,000.
                          (B) Outlays, $6,842,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $9,727,000,000.
                          (B) Outlays, $4,769,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $9,705,000,000.
                          (B) Outlays, $3,190,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $9,580,000,000.
                          (B) Outlays, $2,740,000,000.
          (9) Transportation (400):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $65,121,000,000.
                          (B) Outlays, $62,069,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $66,176,000,000.
                          (B) Outlays, $64,304,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $68,364,000,000.
                          (B) Outlays, $66,232,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $69,680,000,000.
                          (B) Outlays, $67,646,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $70,547,000,000.
                          (B) Outlays, $68,554,000,000.
          (10) Community and Regional Development (450):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $12,230,000,000.
                          (B) Outlays, $14,322,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $12,020,000,000.
                          (B) Outlays, $12,667,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $12,082,000,000.
                          (B) Outlays, $11,906,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $12,060,000,000.
                          (B) Outlays, $11,725,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $12,122,000,000.
                          (B) Outlays, $11,860,000,000.
          (11) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $111,283,000,000.
                          (B) Outlays, $96,270,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $112,450,000,000.
                          (B) Outlays, $111,918,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $113,191,000,000.
                          (B) Outlays, $112,380,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $113,781,000,000.
                          (B) Outlays, $112,103,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $114,504,000,000.
                          (B) Outlays, $113,755,000,000.
          (12) Health (550):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $246,371,000,000.
                          (B) Outlays, $245,453,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $253,921,000,000.
                          (B) Outlays, $253,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $267,406,000,000.
                          (B) Outlays, $266,377,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $286,265,000,000.
                          (B) Outlays, $285,496,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $305,336,000,000.
                          (B) Outlays, $304,756,000,000.
          (13) Medicare (570):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $288,166,000,000.
                          (B) Outlays, $289,126,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $322,974,000,000.
                          (B) Outlays, $322,549,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $362,759,000,000.
                          (B) Outlays, $363,016,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $387,838,000,000.
                          (B) Outlays, $387,858,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $414,278,000,000.
                          (B) Outlays, $413,853,000,000.
          (14) Income Security (600):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $343,018,000,000.
                          (B) Outlays, $345,412,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $341,115,000,000.
                          (B) Outlays, $343,990,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $345,897,000,000.
                          (B) Outlays, $348,565,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $358,595,000,000.
                          (B) Outlays, $360,817,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $367,645,000,000.
                          (B) Outlays, $369,265,000,000.
          (15) Social Security (650):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $15,094,000,000.
                          (B) Outlays, $15,094,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $16,589,000,000.
                          (B) Outlays, $16,589,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $18,049,000,000.
                          (B) Outlays, $18,049,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $19,988,000,000.
                          (B) Outlays, $19,988,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $21,989,000,000.
                          (B) Outlays, $21,989,000,000.
          (16) Veterans Benefits and Services (700):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $79,255,000,000.
                          (B) Outlays, $76,205,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $77,264,000,000.
                          (B) Outlays, $76,140,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $75,427,000,000.
                          (B) Outlays, $74,678,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $78,692,000,000.
                          (B) Outlays, $78,211,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $79,401,000,000.
                          (B) Outlays, $78,942,000,000.
          (17) Administration of Justice (750):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $31,874,000,000.
                          (B) Outlays, $31,445,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $29,174,000,000.
                          (B) Outlays, $29,663,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $29,232,000,000.
                          (B) Outlays, $29,426,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $29,377,000,000.
                          (B) Outlays, $29,264,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $29,525,000,000.
                          (B) Outlays, $29,388,000,000.
          (18) General Government (800):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $17,198,000,000.
                          (B) Outlays, $17,916,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $17,419,000,000.
                          (B) Outlays, $17,392,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $17,573,000,000.
                          (B) Outlays, $17,401,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $17,320,000,000.
                          (B) Outlays, $17,075,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $17,383,000,000.
                          (B) Outlays, $17,044,000,000.
          (19) Interest (900):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $270,331,000,000.
                          (B) Outlays, $270,331,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $317,882,000,000.
                          (B) Outlays, $317,882,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $362,839,000,000.
                          (B) Outlays, $362,839,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $396,309,000,000.
                          (B) Outlays, $396,309,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $424,487,000,000.
                          (B) Outlays, $424,487,000,000.
          (20) Allowances (920):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $50,000,000,000.
                          (B) Outlays, $24,850,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, $________.
                          (B) Outlays, $18,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, $________.
                          (B) Outlays, $5,100,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, $________.
                          (B) Outlays, $1,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, $________.
                          (B) Outlays, $250,000,000.
          (21) Undistributed Offsetting Receipts (950):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$52,349,000,000.
                          (B) Outlays, -$52,475,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$54,427,000,000.
                          (B) Outlays, -$54,477,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$62,642,000,000.
                          (B) Outlays, -$63,767,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$65,485,000,000.
                          (B) Outlays, -$66,147,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$60,856,000,000.
                          (B) Outlays, -$59,893,000,000.
                              ----------                              


    2. An Amendment in the Nature of a Substitute To Be Offered by 
   Representative Hill of Indiana, or His Designee, Debatable for 40 
                                Minutes

  Strike all after the resolving clause and insert the 
following:

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2005.

  (a) Declaration.--The Congress declares that the concurrent 
resolution on the budget for fiscal year 2005 is hereby 
established and that the appropriate levels for fiscal years 
2006 through 2014 are hereby 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 2004.

                 TITLE I--RECOMMENDED LEVELS AND AMOUNTS

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

                        TITLE II--RECONCILIATION

Sec. 201. Reconciliation.
Sec. 202. Submission of report on defense savings.

                TITLE III--RESERVE FUNDS AND ENFORCEMENT

                        Subtitle A--Reserve Funds

Sec. 301. Reserve fund for the costs of military operations in Iraq and 
          Afghanistan.
Sec. 302. Reserve fund for health insurance for the uninsured.
Sec. 303. Adjustment for surface transportation.
Sec. 304. Reserve fund for permanent extension of tax cuts.
Sec. 305. Reserve fund for funding local law enforcement programs.
Sec. 306. Deficit-neutral reserve fund for Military Survivors' Benefit 
          Plan.

                         Subtitle B--Enforcement

Sec. 311. Point of order against certain legislation reducing the 
          surplus or increasing the deficit after fiscal year 2009.
Sec. 312. Application and effect of changes in allocations and 
          aggregates.
Sec. 313. Discretionary spending limits in the House.
Sec. 314. Emergency legislation.
Sec. 315. Pay-as-you-go point of order in the House.
Sec. 316. Disclosure of effect of legislation on the public debt.
Sec. 317. Disclosure of interest costs.
Sec. 318. Dynamic scoring of tax legislation.
Sec. 319. Restrictions on advance appropriations.

   Subtitle C--Increase in Debt Limit Contingent Upon Plan To Restore 
                             Balanced Budget

Sec. 321. Increase in debt limit.
Sec. 322. Review of budget outlook.

        TITLE IV--SENSE OF CONGRESS AND SENSE OF HOUSE PROVISIONS

Sec. 401. Sense of Congress regarding budget enforcement.
Sec. 402. Sense of Congress on tax reform.
Sec. 403. Sense of the House on spending accountability.
Sec. 404. Sense of Congress regarding previously enacted tax 
          legislation.
Sec. 405. Sense of Congress regarding a trigger mechanism for costs of 
          prescription drug legislation.
Sec. 406. Sense of Congress regarding responsible funding for additional 
          military end strength.
Sec. 407. Sense of the House regarding funding for the manufacturing 
          extension partnership.
Sec. 408. Sense of the House regarding the conservation spending 
          category.
Sec. 409. Sense of the House regarding the ouachita-black navigation 
          project.
Sec. 410. Sense of the House on tax simplification and tax fairness.
Sec. 411. Sense of the House on LIHEAP.

                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 2014:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2005: $1,466,774,000,000.
                          Fiscal year 2006: $1,643,201,000,000.
                          Fiscal year 2007: $1,776,224,000,000.
                          Fiscal year 2008: $1,867,910,000,000.
                          Fiscal year 2009: $1,976,900,000,000.
                          Fiscal year 2010: $2,095,382,000,000.
                          Fiscal year 2011: $2,293,633,000,000.
                          Fiscal year 2012: $2,472,923,000,000.
                          Fiscal year 2013: $2,605,505,000,000.
                          Fiscal year 2014: $2,747,823,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                          Fiscal year 2005: $10,360,000,000.
                          Fiscal year 2006: $10,980,000,000.
                          Fiscal year 2007: -$21,280,000,000.
                          Fiscal year 2008: -$22,120,000,000.
                          Fiscal year 2009: -$23,840,000,000.
                          Fiscal year 2010: -$31,800,000,000.
                          Fiscal year 2011: -$12,040,000,000.
                          Fiscal year 2012: $11,500,000,000.
                          Fiscal year 2013: $12,500,000,000.
                          Fiscal year 2014: $14,000,000,000.
          (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: $1,962,161,000,000.
                  Fiscal year 2006: $2,064,882,000,000.
                  Fiscal year 2007: $2,190,409,000,000.
                  Fiscal year 2008: $2,294,184,000,000.
                  Fiscal year 2009: $2,424,272,000,000.
                  Fiscal year 2010: $2,521,850,000,000.
                  Fiscal year 2011: $2,645,018,000,000.
                  Fiscal year 2012: $2,721,044,000,000.
                  Fiscal year 2013: $2,846,992,000,000.
                  Fiscal year 2014: $2,972,679,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2005: $1,981,499,000,000.
                  Fiscal year 2006: $2,075,659,000,000.
                  Fiscal year 2007: $2,166,368,000,000.
                  Fiscal year 2008: $2,259,452,000,000.
                  Fiscal year 2009: $2,386,165,000,000.
                  Fiscal year 2010: $2,497,928,000,000.
                  Fiscal year 2011: $2,626,458,000,000.
                  Fiscal year 2012: $2,695,976,000,000.
                  Fiscal year 2013: $2,827,312,000,000.
                  Fiscal year 2014: $2,952,585,000,000.
          (4) Deficits.--For purposes of the enforcement of 
        this resolution, the amounts of the deficits (on-
        budget) are as follows:
                  Fiscal year 2005: -$514,726,000,000.
                  Fiscal year 2006: -$432,458,000,000.
                  Fiscal year 2007: -$390,144,000,000.
                  Fiscal year 2008: -$391,542,000,000.
                  Fiscal year 2009: -$409,264,000,000.
                  Fiscal year 2010: -$402,546,000,000.
                  Fiscal year 2011: -$332,825,000,000.
                  Fiscal year 2012: -$223,053,000,000.
                  Fiscal year 2013: -$221,807,000,000.
                  Fiscal year 2014: -$204,762,000,000.
          (5) Public debt.--The appropriate levels of the 
        public debt are as follows:
                  Fiscal year 2005: $8,048,800,000,000.
                  Fiscal year 2006: $8,605,200,000,000.
                  Fiscal year 2007: $9,116,400,000,000.
                  Fiscal year 2008: $9,629,000,000,000.
                  Fiscal year 2009: $10,162,300,000,000.
                  Fiscal year 2010: $10,691,800,000,000.
                  Fiscal year 2011: $11,150,200,000,000.
                  Fiscal year 2012: $11,514,300,000,000.
                  Fiscal year 2013: $11,872,500,000,000.
                  Fiscal year 2014: $12,215,400,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2005: $4,737,200,000,000.
                  Fiscal year 2006: $4,990,100,000,000.
                  Fiscal year 2007: $5,184,900,000,000.
                  Fiscal year 2008: $5,365,500,000,000.
                  Fiscal year 2009: $5,550,200,000,000.
                  Fiscal year 2010: $5,714,800,000,000.
                  Fiscal year 2011: $5,796,100,000,000.
                  Fiscal year 2012: $5,758,600,000,000.
                  Fiscal year 2013: $5,712,900,000,000.
                  Fiscal year 2014: $5,643,900,000,000.

SEC. 102. HOMELAND SECURITY.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal year 2005 
for Homeland Security are as follows:
          (1) New budget authority, $34,102,000,000.
          (2) Outlays, $29,997,000,000.

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 2014 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $422,157,000,000.
                          (B) Outlays, $449,442,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $444,807,000,000.
                          (B) Outlays, $441,451,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $466,423,000,000.
                          (B) Outlays, $448,337,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $488,691,000,000.
                          (B) Outlays, $468,010,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $511,074,000,000.
                          (B) Outlays, $489,757,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $523,701,000,000.
                          (B) Outlays, $511,202,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $537,177,000,000.
                          (B) Outlays, $533,024,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $550,124,000,000.
                          (B) Outlays, $539,798,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $563,075,000,000.
                          (B) Outlays, $557,979,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $577,498,000,000.
                          (B) Outlays, $571,363,000,000.
          (2) International Affairs (150):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $26,586,000,000.
                          (B) Outlays, $32,878,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $27,836,000,000.
                          (B) Outlays, $30,066,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $27,990,000,000.
                          (B) Outlays, $26,768,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $27,540,000,000.
                          (B) Outlays, $24,269,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $28,298,000,000.
                          (B) Outlays, $25,162,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $28,888,000,000.
                          (B) Outlays, $25,637,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $29,505,000,000.
                          (B) Outlays, $25,850,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $30,119,000,000.
                          (B) Outlays, $26,124,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $30,752,000,000.
                          (B) Outlays, $26,654,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $31,438,000,000.
                          (B) Outlays, $27,216,000,000.
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $23,418,000,000.
                          (B) Outlays, $22,975,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $23,557,000,000.
                          (B) Outlays, $23,263,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $23,696,000,000.
                          (B) Outlays, $23,352,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $23,369,000,000.
                          (B) Outlays, $23,040,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $23,980,000,000.
                          (B) Outlays, $23,525,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $24,484,000,000.
                          (B) Outlays, $23,988,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $25,005,000,000.
                          (B) Outlays, $24,357,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $25,531,000,000.
                          (B) Outlays, $24,813,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $26,084,000,000.
                          (B) Outlays, $25,340,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $26,641,000,000.
                          (B) Outlays, $25,878,000,000.
          (4) Energy (270):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $2,344,000,000.
                          (B) Outlays, $707,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $2,189,000,000.
                          (B) Outlays, $1,024,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $2,214,000,000.
                          (B) Outlays, $649,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $2,305,000,000.
                          (B) Outlays, $373,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $1,903,000,000.
                          (B) Outlays, $489,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $1,823,000,000.
                          (B) Outlays, $563,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $1,891,000,000.
                          (B) Outlays, $609,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $1,963,000,000.
                          (B) Outlays, $917,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $2,040,000,000.
                          (B) Outlays, $875,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $2,122,000,000.
                          (B) Outlays, $1,296,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $31,386,000,000.
                          (B) Outlays, $31,061,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $31,758,000,000.
                          (B) Outlays, $32,104,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $32,104,000,000.
                          (B) Outlays, $32,357,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $33,445,000,000.
                          (B) Outlays, $33,541,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $33,007,000,000.
                          (B) Outlays, $33,024,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $33,755,000,000.
                          (B) Outlays, $33,852,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $34,502,000,000.
                          (B) Outlays, $34,099,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $35,242,000,000.
                          (B) Outlays, $34,664,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $36,046,000,000.
                          (B) Outlays, $35,149,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $36,945,000,000.
                          (B) Outlays, $36,008,000,000.
          (6) Agriculture (350):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $22,066,000,000.
                          (B) Outlays, $21,184,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $24,129,000,000.
                          (B) Outlays, $22,981,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $25,066,000,000.
                          (B) Outlays, $23,941,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $25,126,000,000.
                          (B) Outlays, $24,061,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $25,985,000,000.
                          (B) Outlays, $25,138,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $25,980,000,000.
                          (B) Outlays, $25,164,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $25,963,000,000.
                          (B) Outlays, $25,142,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $25,885,000,000.
                          (B) Outlays, $25,078,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $25,888,000,000.
                          (B) Outlays, $25,038,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $25,854,000,000.
                          (B) Outlays, $25,031,000,000.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $11,000,000,000.
                          (B) Outlays, $4,677,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $10,457,000,000.
                          (B) Outlays, $5,749,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $9,944,000,000.
                          (B) Outlays, $4,380,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $10,206,000,000.
                          (B) Outlays, $3,485,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $9,878,000,000.
                          (B) Outlays, $3,106,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $10,084,000,000.
                          (B) Outlays, $3,279,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $10,191,000,000.
                          (B) Outlays, $3,317,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $10,375,000,000.
                          (B) Outlays, $3,631,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $10,547,000,000.
                          (B) Outlays, $3,659,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $10,727,000,000.
                          (B) Outlays, $3,693,000,000.
          (8) Transportation (400):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $71,941,000,000.
                          (B) Outlays, $68,861,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $73,370,000,000.
                          (B) Outlays, $71,492,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $75,962,000,000.
                          (B) Outlays, $73,350,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $75,620,000,000.
                          (B) Outlays, $70,450,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $78,843,000,000.
                          (B) Outlays, $78,841,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $72,791,000,000.
                          (B) Outlays, $75,860,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $73,594,000,000.
                          (B) Outlays, $77,265,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $74,432,000,000.
                          (B) Outlays, $78,863,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $75,290,000,000.
                          (B) Outlays, $80,531,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $76,188,000,000.
                          (B) Outlays, $82,165,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $14,999,000,000.
                          (B) Outlays, $16,540,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $14,950,000,000.
                          (B) Outlays, $15,594,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $15,183,000,000.
                          (B) Outlays, $15,462,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $15,433,000,000.
                          (B) Outlays, $15,565,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $15,872,000,000.
                          (B) Outlays, $15,749,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $16,189,000,000.
                          (B) Outlays, $16,247,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $16,517,000,000.
                          (B) Outlays, $15,978,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $16,846,000,000.
                          (B) Outlays, $16,159,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $17,196,000,000.
                          (B) Outlays, $16,450,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $17,542,000,000.
                          (B) Outlays, $16,750,000,000.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $93,036,000,000.
                          (B) Outlays, $90,735,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $94,241,000,000.
                          (B) Outlays, $93,398,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $94,993,000,000.
                          (B) Outlays, $94,109,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $91,712,000,000.
                          (B) Outlays, $91,285,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $96,342,000,000.
                          (B) Outlays, $96,213,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $98,169,000,000.
                          (B) Outlays, $96,894,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $100,198,000,000.
                          (B) Outlays, $98,961,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $102,177,000,000.
                          (B) Outlays, $101,088,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $104,292,000,000.
                          (B) Outlays, $103,091,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $106,398,000,000.
                          (B) Outlays, $105,176,000,000.
          (11) Health (550):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $251,941,000,000.
                          (B) Outlays, $249,821,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $257,720,000,000.
                          (B) Outlays, $258,058,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $271,476,000,000.
                          (B) Outlays, $271,154,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $289,795,000,000.
                          (B) Outlays, $289,865,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $312,044,000,000.
                          (B) Outlays, $309,527,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $332,207,000,000.
                          (B) Outlays, $332,089,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $356,257,000,000.
                          (B) Outlays, $355,680,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $382,311,000,000.
                          (B) Outlays, $381,426,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $410,737,000,000.
                          (B) Outlays, $409,547,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $441,609,000,000.
                          (B) Outlays, $440,241,000,000.
          (12) Medicare (570):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $287,855,000,000.
                          (B) Outlays, $288,862,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $322,663,000,000.
                          (B) Outlays, $322,245,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $362,525,000,000.
                          (B) Outlays, $362,784,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $387,258,000,000.
                          (B) Outlays, $387,295,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $414,018,000,000.
                          (B) Outlays, $413,870,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $442,208,000,000.
                          (B) Outlays, $442,496,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $478,799,000,000.
                          (B) Outlays, $478,801,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $504,733,000,000.
                          (B) Outlays, $504,241,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $550,143,000,000.
                          (B) Outlays, $550,427,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $595,866,000,000.
                          (B) Outlays, $595,863,000,000.
          (13) Income Security (600):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $388,094,000,000.
                          (B) Outlays, $342,528,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $336,305,000,000.
                          (B) Outlays, $340,057,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $341,053,000,000.
                          (B) Outlays, $343,778,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $352,262,000,000.
                          (B) Outlays, $354,584,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $363,266,000,000.
                          (B) Outlays, $364,864,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $375,408,000,000.
                          (B) Outlays, $377,160,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $392,172,000,000.
                          (B) Outlays, $392,862,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $382,017,000,000.
                          (B) Outlays, $382,492,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $396,417,000,000.
                          (B) Outlays, $396,918,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $407,234,000,000.
                          (B) Outlays, $408,043,000,000.
          (14) Social Security (650):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $15,386,000,000.
                          (B) Outlays, $15,196,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $16,801,000,000.
                          (B) Outlays, $16,740,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $18,159,000,000.
                          (B) Outlays, $18,139,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $19,505,000,000.
                          (B) Outlays, $19,528,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $21,860,000,000.
                          (B) Outlays, $21,863,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $24,121,000,000.
                          (B) Outlays, $24,127,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $28,007,000,000.
                          (B) Outlays, $28,009,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $30,993,000,000.
                          (B) Outlays, $30,995,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $33,739,000,000.
                          (B) Outlays, $33,740,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $36,603,000,000.
                          (B) Outlays, $36,604,000,000.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $71,432,000,000.
                          (B) Outlays, $69,456,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $69,415,000,000.
                          (B) Outlays, $68,521,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $67,554,000,000.
                          (B) Outlays, $66,937,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $68,680,000,000.
                          (B) Outlays, $68,443,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $73,552,000,000.
                          (B) Outlays, $73,097,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $75,138,000,000.
                          (B) Outlays, $74,667,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $79,507,000,000.
                          (B) Outlays, $79,046,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $76,587,000,000.
                          (B) Outlays, $76,114,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $81,208,000,000.
                          (B) Outlays, $80,732,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $83,275,000,000.
                          (B) Outlays, $82,822,000,000.
          (16) Administration of Justice (750):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $43,835,000,000.
                          (B) Outlays, $41,255,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $39,933,000,000.
                          (B) Outlays, $40,269,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $40,601,000,000.
                          (B) Outlays, $40,637,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $38,497,000,000.
                          (B) Outlays, $38,501,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $42,172,000,000.
                          (B) Outlays, $41,444,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $43,335,000,000.
                          (B) Outlays, $43,022,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $44,531,000,000.
                          (B) Outlays, $44,174,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $45,776,000,000.
                          (B) Outlays, $45,378,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $47,052,000,000.
                          (B) Outlays, $46,617,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $48,375,000,000.
                          (B) Outlays, $49,939,000,000.
          (17) General Government (800):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $17,324,000,000.
                          (B) Outlays, $17,962,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $17,549,000,000.
                          (B) Outlays, $17,498,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $17,711,000,000.
                          (B) Outlays, $17,531,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $18,847,000,000.
                          (B) Outlays, $18,713,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $17,276,000,000.
                          (B) Outlays, $17,189,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $17,852,000,000.
                          (B) Outlays, $17,634,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $18,464,000,000.
                          (B) Outlays, $18,230,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $19,088,000,000.
                          (B) Outlays, $18,908,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $19,710,000,000.
                          (B) Outlays, $19,262,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $20,359,000,000.
                          (B) Outlays, $19,852,000,000.
          (18) Interest (900):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $270,012,000,000.
                          (B) Outlays, $270,012,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $316,698,000,000.
                          (B) Outlays, $316,698,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $359,828,000,000.
                          (B) Outlays, $359,828,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $390,726,000,000.
                          (B) Outlays, $390,726,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $416,367,000,000.
                          (B) Outlays, $416,367,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $439,593,000,000.
                          (B) Outlays, $439,593,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $459,207,000,000.
                          (B) Outlays, $459,207,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $475,986,000,000.
                          (B) Outlays, $475,986,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $488,534,000,000.
                          (B) Outlays, $488,534,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $502,137,000,000.
                          (B) Outlays, $502,137,000,000.
          (19) Allowances (920):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $49,853,000,000.
                          (B) Outlays, $24,703,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $302,000,000.
                          (B) Outlays, $18,298,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$287,000,000.
                          (B) Outlays, $4,813,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$301,000,000.
                          (B) Outlays, $699,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$316,000,000.
                          (B) Outlays, -$316,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$324,000,000.
                          (B) Outlays, -$324,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$334,000,000.
                          (B) Outlays, -$334,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        -$342,000,000.
                          (B) Outlays, -$342,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        -$351,000,000.
                          (B) Outlays, -$351,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        -$357,000,000.
                          (B) Outlays, -$357,000,000.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$52,505,000,000.
                          (B) Outlays, -$52,505,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$59,798,000,000.
                          (B) Outlays, -$59,848,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$61,787,000,000.
                          (B) Outlays, -$61,937,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$64,532,000,000.
                          (B) Outlays, -$62,982,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$61,150,000,000.
                          (B) Outlays, -$62,745,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$63,552,000,000.
                          (B) Outlays, -$65,222,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$66,135,000,000.
                          (B) Outlays, -$67,820,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        -$68,800,000,000.
                          (B) Outlays, -$70,355,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        -$71,406,000,000.
                          (B) Outlays, -$72,881,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        -$73,765,000,000.
                          (B) Outlays, -$75,135,000,000.

                        TITLE II--RECONCILIATION

SEC. 201. RECONCILIATION.

  (a) Reconciliation Instruction.--Not later than October 1, 
2004, the House Committee on Ways and Means shall report a 
reconciliation bill that consists of changes in laws within its 
jurisdiction sufficient to reduce revenues by not more than 
$10,360,000,000 for fiscal year 2005, by not more than 
$45,900,000,000 for the period of fiscal years 2005 through 
2009, and by not more than $51,740,000,000 for the period of 
fiscal years 2005 through 2014.
  (b) Sense of the House.--It is the sense of the House that in 
complying with the instructions set forth in subsection (a), 
the Committee on Ways and Means should provide middle-class tax 
relief by extending the provisions regarding the child tax 
credit, marriage penalty, and ten percent income tax bracket 
expiring in 2004 for one year, provide permanent estate tax 
relief for small business and family farms and ranches, and 
defer a portion of tax reductions for taxpayers within incomes 
over $200,000 a year until the budget is balanced.
  (c) Additional Reconciliation Instruction.--Not later than 
October 1, 2004, the House Committee on Ways and Means shall 
report a reconciliation bill that consists of changes in laws 
within its jurisdiction that is revenue neutral by--
          (1) raising revenues by closing corporate tax 
        loopholes, improving tax compliance, and making other 
        tax changes; and
          (2) utilizing these savings to provide additional tax 
        relief to middle-class families and small businesses or 
        make other tax changes to promote economic growth.

SEC. 202. SUBMISSION OF REPORT ON DEFENSE SAVINGS.

  In the House, not later than May 15, 2004, the Committee on 
Armed Services shall submit to the Committee on the Budget its 
findings that identify $2,000,000,000 in savings from (1) 
activities that are determined to be of a low priority to the 
successful execution of current military operations; or (2) 
activities that are determined to be wasteful or unnecessary to 
national defense. Funds identified should be reallocated to 
programs and activities that directly contribute to enhancing 
the combat capabilities of the U.S. military forces with an 
emphasis on force protection, munitions and surveillance 
capabilities. For purposes of this subsection, the report by 
the Committee on Armed Services shall be inserted in the 
Congressional Record by the chairman of the Committee on the 
Budget not later than May 21, 2004.

                TITLE III--RESERVE FUNDS AND ENFORCEMENT

                       Subtitle A--Reserve Funds

SEC. 301. RESERVE FUND FOR THE COSTS OF MILITARY OPERATIONS IN IRAQ AND 
                    AFGHANISTAN.

  (a) Reserve Fund.--In the House, if the Committee on 
Appropriations reports a bill or joint resolution, or if an 
amendment thereto is offered or a conference report thereon is 
submitted, that provides new budget authority (and outlays 
flowing therefrom) for the costs of military operations in Iraq 
and Afghanistan, then the chairman of the Committee on the 
Budget shall make the appropriate revisions to the allocations 
and other levels in this resolution by an amount not exceed 
$50,000,000,000 in new budget authority and the resulting 
outlays.
  (b) Sense of Congress.--It is the sense of Congress that the 
President should submit a supplemental request for funding 
necessary for military and civilian operations in Iraq and 
Afghanistan through the end of the calendar year not later than 
June 30, 2004.

SEC. 302. RESERVE FUND FOR HEALTH INSURANCE FOR THE UNINSURED.

  If the Committee on Finance or the Committee on Health, 
Education, Labor, and Pensions of the Senate reports a bill or 
joint resolution, or an amendment thereto is offered or a 
conference report thereon is submitted, that provides health 
insurance or expands access to care for the uninsured 
(including a measure providing for tax deductions for the 
purchase of health insurance or other measures), increases 
access to health insurance through lowering costs, and does not 
increase the costs of current health insurance coverage, the 
chairman of the Committee on the Budget may revise allocations 
of new budget authority and outlays, the revenue aggregates, 
and other appropriate aggregates to reflect such legislation, 
provided that such legislation would not increase the deficit 
for fiscal year 2005 and for the period of fiscal years 2005 
through 2009.

SEC. 303. ADJUSTMENT FOR SURFACE TRANSPORTATION.

  (a) In General.--If the Committee on Transportation and 
Infrastructure of the House reports a bill or joint resolution, 
or if an amendment thereto is offered or a conference report 
thereon is submitted, that provides new budget authority for 
the budget accounts or portions thereof in the highway and 
transit categories as defined in subparagraphs (B) and (C) of 
section 250(c)(4) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 in excess of--
          (1) for fiscal year 2005, $41,772,000,000; or
          (2) for fiscal years 2005 through 2009, 
        $207,293,000,000;
the chairman of the Committee on the Budget may adjust the 
appropriate budget aggregates and increase the allocation of 
new budget authority to such committee for fiscal year 2005 and 
for the period of fiscal years 2005 through 2009 to the extent 
such excess is offset by a reduction in mandatory outlays from 
the Highway Trust Fund or an increase in receipts appropriately 
made available to such Fund for the applicable fiscal year 
caused by such legislation or previously enacted legislation.
  (b) Adjustment for Outlays.--(1) For fiscal year 2005, in the 
House, if a bill or joint resolution is reported, or if an 
amendment thereto is offered or a conference report thereon is 
submitted, that changes obligation limitations such that the 
total limitations are in excess of $40,600,000,000 for fiscal 
year 2005, for programs, projects, and activities within the 
highway and transit categories as defined in subparagraphs (B) 
and (C) of section 250(c)(4) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 and if legislation has 
been enacted that satisfies the conditions set forth in 
subsection (a) for such fiscal year, the chairman of the 
Committee on the Budget may increase the allocation of outlays 
and appropriate aggregates for such fiscal year for the 
committee reporting such measure 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 2005 
pursuant to subsection (a).
  (2) For fiscal year 2006, in the House, if a bill or joint 
resolution is reported, or if an amendment thereto is offered 
or a conference report thereon is submitted, that changes 
obligation limitations such that the total limitations are in 
excess of $40,621,000,000 for fiscal year 2005, for programs, 
projects, and activities within the highway and transit 
categories as defined in subparagraphs (B) and (C) of section 
250(c)(4) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 and if legislation has been enacted that satisfies 
the conditions set forth in subsection (a) for such fiscal 
year, the chairman of the Committee on the Budget may increase 
the allocation of outlays and appropriate aggregates for such 
fiscal year for the committee reporting such measure 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).

SEC. 304. RESERVE FUND FOR PERMANENT EXTENSION OF TAX CUTS.

  In the House, notwithstanding section 311 of this resolution, 
if the Committee on Ways and Means reports a bill or joint 
resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that makes the 
provisions of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 permanent, and if the chairman on the Committee on 
the Budget certifies that the enactment of such legislation 
would not cause or increase a unified budget deficit in 2011 or 
any succeeding fiscal year covered by this resolution, then the 
chairman on the Committee on the Budget shall revise 
allocations to accommodate such legislation and make other 
necessary adjustments.

SEC. 305. RESERVE FUND FOR FUNDING LOCAL LAW ENFORCEMENT PROGRAMS.

  In the House, if the House passes legislation reported by the 
Committee on Energy and Commerce providing for additional 
spectrum auctions, the Chairman of the Committee on the Budget 
may revise allocations for legislation providing increased 
funding for local law enforcement assistance by an amount that 
does not exceed the estimated increase in receipts from the 
spectrum auction legislation reported by the Committee on 
Energy and Commerce.

SEC. 306. DEFICIT-NEUTRAL RESERVE FUND FOR MILITARY SURVIVORS' BENEFIT 
                    PLAN.

  In the House, if the Committee on Armed Services reports 
legislation, or if an amendment thereto is offered or a 
conference report thereon is submitted, that increases 
survivors' benefits under the Military Survivors' Benefit Plan, 
the chairman of the Committee on the Budget may make the 
appropriate adjustments in allocations and aggregates to the 
extent such measure is deficit neutral resulting from a change 
other than to discretionary appropriations in fiscal year 2005 
and for the period of fiscal years 2005 through 2009.

                        Subtitle B--Enforcement

SEC. 311. POINT OF ORDER AGAINST CERTAIN LEGISLATION REDUCING THE 
                    SURPLUS OR INCREASING THE DEFICIT AFTER FISCAL YEAR 
                    2009.

  It shall not be in order in the House to consider any bill, 
joint resolution, amendment, or conference report that includes 
any provision that first provides new budget authority or a 
decrease in revenues for any fiscal year after fiscal year 2009 
through fiscal year 2014 that would decrease the surplus or 
increase the deficit for any fiscal year.

SEC. 312. 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 Committee on the Budget; and
          (2) such chairman may make any other necessary 
        adjustments to such levels to carry out this 
        resolution.

SEC. 313. DISCRETIONARY SPENDING LIMITS IN THE HOUSE.

  (a) Point of Order.--It shall not be in order in the House to 
consider any bill or joint resolution, or amendment thereto, 
that provides new budget authority that would cause the 
discretionary spending limits to be exceeded for any fiscal 
year.
  (b) Discretionary Spending Limits.--In the House and as used 
in this section, the term ``discretionary spending limit'' 
means--
          (1) with respect to fiscal year 2005, for the 
        discretionary category: $____ in new budget authority 
        and $____ in outlays;
          (2) with respect to fiscal year 2006, for the 
        discretionary category: $____ in new budget authority 
        and $____ in outlays;
          (3) with respect to fiscal year 2007, for the 
        discretionary category: $____ in new budget authority 
        and $____ in outlays;
as adjusted in conformance with subsection (c).
  (c) Adjustments.--
          (1) In general.--
                  (A) Chairman.--After the reporting of a bill 
                or joint resolution, 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. The 
                chairman of the Committee on the Budget may 
                also make appropriate adjustments for the 
                reserve funds set forth in sections 201 and 
                202.
                  (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--
                  (A) an amount provided and designated as an 
                emergency requirement pursuant to section 314;
                  (B) an amount appropriated for military 
                operations in Iraq as provided in section 301; 
                and
                  (C) an amount provided for transportation 
                under section 303.
          (3) Application of adjustments.--The adjustments made 
        for legislation pursuant to paragraph (1) shall--
                  (A) apply while that legislation is under 
                consideration;
                  (B) take effect upon the enactment of that 
                legislation; and
                  (C) be published in the Congressional Record 
                as soon as practicable.
          (4) Application of this section.--The provisions of 
        this section shall apply to legislation providing new 
        budget authority for fiscal years 2003 through 2005.
  (d) Enforcement in the House of Representatives.--(1) It 
shall not be in order in the House of Representatives to 
consider a rule or order that waives the application of this 
section.
  (2)(A) This subsection shall apply only to the House of 
Representatives.
  (B) In order to be cognizable by the Chair, a point of order 
under this section must specify the precise language on which 
it is premised.
  (C) As disposition of points of order under this section, the 
Chair shall put the question of consideration with respect to 
the proposition that is the subject of the points of order.
  (D) A question of consideration under this section shall be 
debatable for 10 minutes by each Member initiating a point of 
order and for 10 minutes by an opponent on each point of order, 
but shall otherwise be decided without intervening motion 
except one that the House adjourn or that the Committee of the 
Whole rise, as the case may be.
  (E) The disposition of the question of consideration under 
this subsection with respect to a bill or joint resolution 
shall be considered also to determine the question of 
consideration under this subsection with respect to an 
amendment made in order as original text.

SEC. 314. EMERGENCY LEGISLATION.

  (a) Authority To Designate.--If a provision of direct 
spending or receipts legislation is enacted or if 
appropriations for discretionary accounts are enacted that the 
President designates as an emergency requirement and that the 
Congress so designates in statute, the amounts of new budget 
authority, outlays, and receipts in all fiscal years resulting 
from that provision shall be designated as an emergency 
requirement for the purpose of this resolution.
  (b) Designations.--
          (1) Guidance.--If a provision of legislation is 
        designated as an emergency requirement under subsection 
        (a), the committee report and any statement of managers 
        accompanying that legislation shall analyze whether a 
        proposed emergency requirement meets all the criteria 
        in paragraph (2).
          (2) Criteria.--
                  (A) In general.--The criteria to be 
                considered in determining whether a proposed 
                expenditure or tax change is an emergency 
                requirement are that the expenditure or tax 
                change is--
                          (i) necessary, essential, or vital 
                        (not merely useful or beneficial);
                          (ii) sudden, quickly coming into 
                        being, and not building up over time;
                          (iii) an urgent, pressing, and 
                        compelling need requiring immediate 
                        action;
                          (iv) subject to subparagraph (B), 
                        unforeseen, unpredictable, and 
                        unanticipated; and
                          (v) not permanent, temporary in 
                        nature.
                  (B) Unforeseen.--An emergency that is part of 
                an aggregate level of anticipated emergencies, 
                particularly when normally estimated in 
                advance, is not unforeseen.
          (3) Justification for use of designation.--When an 
        emergency designation is proposed in any bill, joint 
        resolution, or conference report thereon, the committee 
        report and the statement of managers accompanying a 
        conference report, as the case may be, shall provide a 
        written justification of why the provision meets the 
        criteria set forth in paragraph (2).
  (c) Definitions.--In this section, the terms ``direct 
spending'', ``receipts'', and ``appropriations for 
discretionary accounts'' means any provision of a bill, joint 
resolution, amendment, motion or conference report that 
provides 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.
  (d) Separate House Vote on Emergency Designation.--(1) In the 
House, in the consideration of any measure for amendment in the 
Committee of the Whole containing any emergency spending 
designation, it shall always be in order unless specifically 
waived by terms of a rule governing consideration of that 
measure, to move to strike such emergency spending designation 
from the portion of the bill then open to amendment.
  (2) The Committee on Rules shall include in the report 
required by clause 1(d) of rule XI (relating to its activities 
during the Congress) of the Rules of House of Representatives a 
separate item identifying all waivers of points of order 
relating to emergency spending designations, listed by bill or 
joint resolution number and the subject matter of that measure.
  (e) Committee Notification of Emergency Legislation.--
Whenever the Committee on Appropriations or any other committee 
of either House (including a committee of conference) reports 
any bill or joint resolution that provides budget authority for 
any emergency, the report accompanying that bill or joint 
resolution (or the joint explanatory statement of managers in 
the case of a conference report on any such bill or joint 
resolution) shall identify all provisions that provide budget 
authority and the outlays flowing therefrom for such emergency 
and include a statement of the reasons why such budget 
authority meets the definition of an emergency pursuant to the 
guidelines described in subsection (b).
  (f) Conference Reports.--If a point of order is sustained 
under this section against a conference report, the report 
shall be disposed of as provided in section 313(d) of the 
Congressional Budget Act of 1974.
  (g) Exception for Defense and Homeland Security Spending.--
Subsection (d) shall not apply against an emergency designation 
for a provision making discretionary appropriations in the 
defense category and for homeland security programs.

SEC. 315. PAY-AS-YOU-GO POINT OF ORDER IN THE HOUSE.

  (a) Point of Order.--
          (1) In general.--It shall not be in order in the 
        House to consider any direct spending or revenue 
        legislation that would increase the on-budget deficit 
        or cause an on-budget deficit for any one of the three 
        applicable time periods as measured in paragraphs (5) 
        and (6).
          (2) Applicable time periods.--For purposes of this 
        subsection, the term ``applicable time period'' means 
        any 1 of the 3 following periods:
                  (A) The first year covered by the most 
                recently adopted concurrent resolution on the 
                budget.
                  (B) The period of the first 5 fiscal years 
                covered by the most recently adopted concurrent 
                resolution on the budget.
                  (C) The period of the 5 fiscal years 
                following the first 5 fiscal years covered in 
                the most recently adopted concurrent resolution 
                on the budget.
          (3) Direct-spending legislation.--For purposes of 
        this subsection and except as provided in paragraph 
        (4), the term ``direct-spending legislation'' means any 
        bill, joint resolution, amendment, or conference report 
        that affects direct spending as that term is defined 
        by, and interpreted for purposes of, the Balanced 
        Budget and Emergency Deficit Control Act of 1985.
          (4) Exclusion.--For purposes of this subsection, the 
        terms ``direct-spending legislation'' and ``revenue 
        legislation'' do not include--
                  (A) any concurrent resolution on the budget;
                  (B) any provision of legislation that affects 
                the full funding of, and continuation of, the 
                deposit insurance guarantee commitment in 
                effect on the date of enactment of the Budget 
                Enforcement Act of 1990; or
                  (C) any legislation for which an adjustment 
                is made under section 301.
          (5) Baseline.--Estimates prepared pursuant to this 
        section shall--
                  (A) use the baseline surplus or deficit used 
                for the most recently adopted concurrent 
                resolution on the budget as adjusted for any 
                changes in revenues or direct spending assumed 
                by such resolution; and
                  (B) be calculated under the requirements of 
                subsections (b) through (d) of section 257 of 
                the Balanced Budget and Emergency Deficit 
                Control Act of 1985 for fiscal years beyond 
                those covered by that concurrent resolution on 
                the budget.
          (6) Prior surplus.--If direct spending or revenue 
        legislation increases the on-budget deficit or causes 
        an on-budget deficit when taken individually, it must 
        also increase the on-budget deficit or cause an on-
        budget deficit when taken together with all direct 
        spending and revenue legislation enacted since the 
        beginning of the calendar year not accounted for in the 
        baseline under paragraph (5)(A), except that direct 
        spending or revenue effects resulting in net deficit 
        reduction enacted pursuant to reconciliation 
        instructions since the beginning of that same calendar 
        year shall not be available.
  (b) Appeals.--Appeals in the House from the decisions of the 
Chair relating to any provision of this section 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.
  (c) Determination of Budget Levels.--For purposes of this 
section, the levels of new budget authority, outlays, and 
revenues for a fiscal year shall be determined on the basis of 
estimates made by the Committee on the Budget of the House.
  (d) Enforcement in the House of Representatives.--(1) It 
shall not be in order in the House of Representatives to 
consider a rule or order that waives the application of this 
section.
  (2)(A) This subsection shall apply only to the House of 
Representatives.
  (B) In order to be cognizable by the Chair, a point of order 
under this section must specify the precise language on which 
it is premised.
  (C) As disposition of points of order under this section, the 
Chair shall put the question of consideration with respect to 
the proposition that is the subject of the points of order.
  (D) A question of consideration under this section shall be 
debatable for 10 minutes by each Member initiating a point of 
order and for 10 minutes by an opponent on each point of order, 
but shall otherwise be decided without intervening motion 
except one that the House adjourn or that the Committee of the 
Whole rise, as the case may be.
  (E) The disposition of the question of consideration under 
this subsection with respect to a bill or joint resolution 
shall be considered also to determine the question of 
consideration under this subsection with respect to an 
amendment made in order as original text.
  (e) Sunset.--This section shall expire on September 30, 2009.

SEC. 316. DISCLOSURE OF EFFECT OF LEGISLATION ON THE PUBLIC DEBT.

  Each report of a committee of the House on a public bill or 
public joint resolution shall contain an estimate by the 
committee of the amount the public debt would be increased 
(including related debt service costs) in carrying out the bill 
or joint resolution in the fiscal year in which it is reported 
and in the 5-fiscal year period beginning with such fiscal year 
(or for the authorized duration of any program authorized by 
the bill or joint resolution if less than five years).

SEC. 317. DISCLOSURE OF INTEREST COSTS.

  Whenever a committee of either House of Congress reports to 
its House legislation providing new budget authority or 
providing an increase or decrease in revenues or tax 
expenditures, the report accompanying that bill or joint 
resolution shall contain a projection by the Congressional 
Budget Office of the cost of the debt servicing that would be 
caused by such measure for such fiscal year (or fiscal years) 
and each of the 4 ensuing fiscal years.

SEC. 318. DYNAMIC SCORING OF TAX LEGISLATION.

  Any report of the Committee on Ways and Means of the House of 
any bill or joint resolution reported by that committee that 
proposes to amend the Internal Revenue Code of 1986 and which 
report includes an estimate prepared by the Joint Committee on 
Internal Revenue Taxation pursuant to clause 2(h)(2) of the 
Rules of the House of Representatives shall also contain an 
estimate prepared by the Congressional Budget Office regarding 
the macroeconomic effect of any increase or decrease in the 
estimated budget deficit resulting from such bill or joint 
resolution.

SEC. 319. RESTRICTIONS ON ADVANCE APPROPRIATIONS.

  (a) In General.--(1) In the House, except as provided in 
subsection (b), 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.
  (2) Managers on the part of the House may not agree to a 
Senate amendment that would violate paragraph (1) unless 
specific authority to agree to the amendment first is given by 
the House by a separate vote with respect thereto.
  (b) Limitation.--In the House, an advance appropriation may 
be provided for fiscal year 2006 or 2007 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 
$23,568,000,000 in new budget authority.
  (c) Definition.--In this subsection, the term ``advance 
appropriation'' means any discretionary new budget authority in 
a bill or joint resolution making general appropriations or 
continuing appropriations for fiscal year 2005 that first 
becomes available for any fiscal year after 2005.

  Subtitle C--Increase in Debt Limit Contingent Upon Plan To Restore 
                            Balanced Budget.

SEC. 321. INCREASE IN DEBT LIMIT.

  (a) Temporary Increase in Statutory Debt Limit.--The 
Committee on Ways and Means of the House shall report a bill as 
soon as practicable, but not later than June 30, 2004, that 
consists solely of changes in laws within its jurisdiction to 
increase the statutory debt limit by $150,000,000,000.
  (b) Point of Order.--(1) Except as provided by subsection (a) 
or paragraph (2), it shall not be in order in the House to 
consider any bill, joint resolution, amendment, or conference 
report that includes any provision that increases the limit on 
the public debt by more than $100,000,000,000.
  (2) Paragraph (1) shall not apply in the House if--
          (A) the chairman of the Committee on the Budget of 
        the House has made the certification described in 
        section 322 that the unified budget will be in balance 
        by fiscal year 2012; or
          (B) the President has submitted to Congress a 
        declaration that such increase is necessary to finance 
        costs of a military conflict or address an imminent 
        threat to national security, but which shall not exceed 
        the amount of the adjustment under section 301 for the 
        costs of military operations in Iraq.

SEC. 322. REVIEW OF BUDGET OUTLOOK.

  (a) In General.--If, in the report released pursuant to 
section 202 of the Congressional Budget Act of 1974, entitled 
the Budget and Economic Outlook Update (for fiscal years 2005 
through 2014), the Director of the Congressional Budget Office 
projects that the unified budget of the United States for 
fiscal year 2012 will be in balance, then the chairman of the 
Committee on the Budget of the House is authorized to certify 
that the budget is projected to meet the goals of a balanced 
budget.
  (b) Calculating Discretionary Spending Baseline.--
Notwithstanding any other provision of law, the Director of the 
Congressional Budget Office shall use the discretionary 
spending levels set forth in this resolution, including any 
adjustments to such levels as a result of the implementation of 
any reserve funds set forth in this resolution to calculate the 
discretionary spending baseline.

       TITLE IV--SENSE OF CONGRESS AND SENSE OF HOUSE PROVISIONS

SEC. 401. SENSE OF CONGRESS REGARDING BUDGET ENFORCEMENT.

  It is the sense of Congress that legislation should be 
enacted enforcing this resolution by--
          (1) setting discretionary spending limits for budget 
        authority and outlays at the levels set forth in this 
        resolution for each of the next 3 fiscal years;
          (2) reinstating the pay-as-you-go rules set forth in 
        section 252 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 for the next 5 fiscal 
        years;
          (3) requiring separate votes to exceed such 
        discretionary spending limits or to waive such pay-as-
        you-go rules;
          (4) establishing a definition for emergency spending 
        and requiring a justification for emergency spending 
        requests and legislation; and
          (5) establishing expedited rescission authority 
        regarding congressional votes on rescission submitted 
        by the President and reducing discretionary spending 
        limits to reflect savings from any rescissions enacted 
        into law.

SEC. 402. SENSE OF CONGRESS ON TAX REFORM.

  It is the sense of Congress that the Committee on Ways and 
Means should--
          (1) work with the Secretary of the Treasury to draft 
        legislation reforming the Internal Revenue Code of 1986 
        in a revenue-neutral manner to improve savings and 
        investment; and
          (2) consider changes that address the treatment of 
        dividends and retirement savings, corporate tax 
        avoidance, and simplification of the tax laws.

SEC. 403. SENSE OF THE HOUSE ON SPENDING ACCOUNTABILITY.

  It is the sense of the House that--
          (1) authorizing committees should actively engage in 
        oversight utilizing--
                  (A) the plans and goals submitted by 
                executive agencies pursuant to the Government 
                Performance and Results Act of 1993; and
                  (B) the performance evaluations submitted by 
                such agencies (that are based upon the Program 
                Assessment Rating Tool which is designed to 
                improve agency performance);
        in order to enact legislation to eliminate waste, 
        fraud, and abuse to ensure the efficient use of 
        taxpayer dollars;
          (2) all Federal programs should be periodically 
        reauthorized and funding for unauthorized programs 
        should be level-funded in fiscal year 2005 unless there 
        is a compelling justification;
          (3) committees should submit written justifications 
        for earmarks and should consider not funding those most 
        egregiously inconsistent with national policy;
          (4) the fiscal year 2005 budget resolution should be 
        vigorously enforced; and
          (5) Congress should make every effort to offset 
        nonwar-related supplemental appropriations.

SEC. 404. SENSE OF CONGRESS REGARDING PREVIOUSLY ENACTED TAX 
                    LEGISLATION.

  (a) Findings.--The Congress finds the following:
          (1) H. Con. Res. 95, the concurrent resolution on the 
        budget for fiscal year 2004 provided that revenues 
        would be $1.883 trillion in fiscal year 2004 after 
        enactment of the tax cut legislation provided for in 
        the resolution.
          (2) Many advocates of the tax cut argued that 
        revenues would actually be much higher because the tax 
        cuts would stimulate growth and produce a surge in 
        revenues.
          (3) The Congressional Budget Office estimated in ``An 
        Analysis of the President's Budgetary Proposals for 
        Fiscal Year 2005'' that revenues would be $1.782 
        trillion in 2004, $100 billion lower than promised when 
        the tax cuts were enacted.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) Congress should enact legislation to review the 
        impact of enacted tax cut legislation on total 
        revenues; and
          (2) such legislation should establish revenue targets 
        equal to total revenue levels established in the 
        concurrent resolution on the budget for fiscal year 
        2004; and that if total revenues fall below the 
        targets, the President would be required to propose 
        legislation to offset the revenue shortfall through 
        spending reductions or increased revenues or explicitly 
        authorize an increase in the debt limit by the amount 
        of the shortfall and that Congress would be required to 
        consider vote on the President's proposal under an 
        expedited process.

SEC. 405. SENSE OF CONGRESS REGARDING A TRIGGER MECHANISM FOR COSTS OF 
                    PRESCRIPTION DRUG LEGISLATION.

  (a) Findings.--The Congress finds the following:
          (1) The cost of the new Medicare law, estimated by 
        the Congressional Budget Office before its passage to 
        be $395,000,000,000 over ten years, has now been 
        estimated by the Department of Health and Human 
        Services to be $534,000,000,000 over ten years.
          (2) Without taking steps to control the cost of 
        prescription drugs, the Medicare law will become an 
        unsustainable burden on the the Government and on 
        taxpayers. In addition, rising drug costs could end up 
        shifting additional cost burdens to Medicare 
        beneficiaries.
          (3) The Congressional Budget Office ans the 
        Department of Human Services have estimated that the 
        reforms enacted as part of Medicare legislation 
        increasing participation of private plans in the 
        Medicare program would increase the costs of the 
        Medicare program.
          (4) Prescription drug costs increased 15.3 percent in 
        2003. These rising costs are one of the primary drivers 
        of increasing health care costs, which ran at 9.3 
        percent last year.
  (b) Sense of the House.--It is the sense of the House that--
          (1) legislation should be adopted which would 
        establish a trigger mechanism to reduce costs of 
        Medicare prescription drug legislation through 
        negotiation of prescription drug prices by the 
        Secretary of Health and Human Services and other 
        changes to Medicare prescription drug legislation 
        recommended by the President;
          (2) this legislation would mandate that at any point 
        when the expected ten-year expenditures for fiscal 
        years 2004 through 2013 for Public Law 108-173 exceed 
        the Congressional Budget Office estimate for this 
        legislation, the Secretary of Health and Human Services 
        would be required to immediately enter into direct 
        negotiations with pharmaceutical manufacturers for 
        competitive drug prices; and
          (3) this legislation would further provide that if 
        the Secretary is unable to negotiate reductions in 
        prescription drug prices sufficient to reduce estimated 
        ten year expenditures for Public Law 108-174 by the 
        amount these costs exceed the Congressional Budget 
        Office estimates for this legislation when it was 
        enacted the President would be required to submit to 
        Congress legislative changes to eliminate this excess 
        and Congress would be required to consider this 
        proposal under an expedited process.

SEC. 406. SENSE OF CONGRESS REGARDING RESPONSIBLE FUNDING FOR 
                    ADDITIONAL MILITARY END STRENGTH.

  It is the sense of the Congress that the aggregates and 
function levels in this resolution for major functional 
category 050 (Defense), excluding any supplemental 
appropriations under section 301 for military operations in 
Iraq and Afghanistan, assumes funding in the Military Personnel 
accounts for the costs of approximately 10,000 additional 
military personnel exceeding the normal strength levels either 
to provide forces deployed for military operations or to 
sustain the readiness levels of deploying units.

SEC. 407. SENSE OF THE HOUSE REGARDING FUNDING FOR THE MANUFACTURING 
                    EXTENSION PARTNERSHIP.

  (a) Findings.--The House finds that--
          (1) the Manufacturing Extension Partnership, which is 
        jointly funded by Federal and State Governments and 
        private entities, improves small manufacturers' 
        competitiveness, creates jobs, increases economic 
        activity, and generates a $4-to-$1 return on investment 
        to the Treasury by aiding small businesses 
        traditionally underserved by the business consulting 
        market;
          (2) in a January 2004 Department of Commerce report 
        titled Manufacturing In America: A Comprehensive 
        Strategy to Address the Challenges to U.S. 
        Manufacturers, the Administration stated that ``...the 
        Manufacturing Extension Partnership (MEP) has provided 
        many small U.S. manufacturers with useful business 
        services to become more competitive and productive,'' a 
        conclusion in which the Congress concurs;
          (3) the Congress appropriated $106 million for the 
        Manufacturing Extension Partnership for 2003 but only 
        $39 million for 2004, and the President's 2005 budget 
        maintains this drastically reduced funding level, 
        undermining the ability of the Manufacturing Extension 
        Partnership to fulfill its mission of helping small 
        businesses to adopt advanced manufacturing technologies 
        and practices that will help them compete in a global 
        market; and
          (4) Federal funding for the Manufacturing Extension 
        Partnership should be restored to its pre-2004 level, 
        adjusted for inflation.
  (b) Sense of the House.--It is the sense of the House that--
          (1) this resolution provides a total of $110 million 
        for the Manufacturing Extension Partnership for 2005, 
        $71 million more than the President's request, and 
        supports adequate funding throughout the period covered 
        by this resolution; and
          (2) this funding restores the viability of the 
        Manufacturing Extension Partnership and provides the 
        necessary resources for the Manufacturing Extension 
        Partnership to continue helping small manufacturers 
        reach their optimal performance and create jobs.

SEC. 408. SENSE OF THE HOUSE REGARDING THE CONSERVATION SPENDING 
                    CATEGORY.

  (a) Findings.--The House finds that--
          (1) the 2001 Interior Appropriations Act (Public Law 
        106-291), which established a separate discretionary 
        spending category for land conservation and natural 
        resource protection programs for the fiscal years 2001 
        through 2006, passed by large margins in both the House 
        and the Senate; and
          (2) in establishing a separate conservation spending 
        category, Congress recognized the chronic underfunding 
        of programs that protect and enhance public lands, 
        wildlife habitats, urban parks, historic and cultural 
        landmarks, and coastal ecosystems.
  (b) Sense of the House.--It is the sense of the House that 
the any law establishing new caps on discretionary spending 
should include a separate conservation spending category and 
that any caps on conservation spending for fiscal years 2005 or 
2006 should be set at the levels established in Public Law 106-
291.

SEC. 409. SENSE OF THE HOUSE REGARDING THE OUACHITA-BLACK NAVIGATION 
                    PROJECT.

  (a) Findings.--The House finds that--
          (1) the Ouachita-Black Navigation Project was 
        authorized by the River and Harbor Act of 1950 and 
        modified by the River and Harbor Act of 1960; and
          (2) a 382-mile navigation channel on the Red, Black 
        and Ouachita Rivers was created requiring annual 
        dredging to ensure the rivers' channel depth is 
        maintained at the nine feet needed for commercial use; 
        and
          (3) if adequate annual funding is not provided to the 
        Corps of Engineers and others, the project will not be 
        able to function, undercutting commerce and 
        revitalization in the area served by the project, and 
        resulting in the loss of hundreds of jobs that are 
        dependent on barge traffic.
  (b) Sense of the House.--It is the sense of the House that 
full funding should be provided for the Ouachita-Black 
Navigation Project in 2005 and beyond, notwithstanding the ton-
mileage of barge traffic using the project.

SEC. 410. SENSE OF THE HOUSE ON TAX SIMPLIFICATION AND TAX FAIRNESS.

  It is the sense of the House that--
          (1) the current tax system has been made increasingly 
        complex and unfair to the detriment of the vast 
        majority of working Americans;
          (2) constant change and manipulation of the tax code 
        have adverse effects on taxpayers' understanding and 
        trust in the Nation's tax laws;
          (3) these increases in complexity and clarity have 
        made compliance more challenging for the average 
        taxpayer and small business owner, especially the self-
        employed; and
          (4) this budget resolution contemplates a 
        comprehensive review of recent changes in the tax code, 
        leading to future action to reduce the tax burden and 
        compliance burden for middle-income workers and their 
        families in the context of tax reform that makes the 
        Federal tax code simpler and fairer to all taxpayers.

SEC. 411. SENSE OF THE HOUSE ON LIHEAP.

  (a) Findings.--The House finds that--
          (1) the United States is in the grip of pervasively 
        higher home energy prices;
          (2) high natural gas, heating oil, and propane prices 
        are, in general, having an effect that is rippling 
        through the United States economy and are, in 
        particular, impacting home energy bills;
          (3) while persons in many sectors can adapt to 
        natural gas, heating oil, and propane price increases, 
        persons in some sectors simply cannot;
          (4) elderly and disabled citizens who are living on 
        fixed incomes, the working poor, and other low-income 
        individuals face hardships wrought by high home energy 
        prices;
          (5) the energy burden for persons among the working 
        poor often exceeds percent of those persons' incomes 
        under normal conditions;
          (6) under current circumstances, home energy prices 
        are unnaturally high, and these are not normal 
        circumstances;
          (7) while critically important and encouraged, State 
        energy assistance and charitable assistance funds have 
        been overwhelmed by the crisis caused by the high home 
        energy prices;
          (8) the Federal Low-Income Home Energy Assistance 
        Program (referred to in this section as ``LIHEAP'') and 
        the companion weatherization assistance program 
        (referred to in this section as ``WAP''), are the 
        Federal Government's primary means to assist eligible 
        low-income individuals in the United States to shoulder 
        the burdens caused by their home cooling and heating 
        needs;
          (9) in 2003, LIHEAP reached only 15 percent of the 
        persons in the United States who were eligible for 
        assistance under the program;
          (10) since LIHEAP's inception, its inflation-adjusted 
        buying power has eroded by 58 percent; and
          (11) current Federal funding for LIHEAP is not 
        sufficient to meet the cooling and heating needs of 
        low-income families.
  (b) Sense of the House.--It is the sense of the House that 
the levels in this concurrent resolution assume--
          (1) an authorization of $3,400,000,000 for each of 
        fiscal years 2005 and 2006 to carry out the LIHEAP 
        program;
          (2) an authorization of $400,000,000 for fiscal year 
        2005 and $500,000,000 for fiscal year 2006 to carry out 
        the WAP program;
          (3) appropriations, for these programs, of sufficient 
        additional funds to realistically address the cooling 
        and heating needs of low-income families;
          (4) advance appropriations of the necessary funds to 
        ensure the smooth operation of the programs during 
        times of peak demand.
                              ----------                              


    3. An Amendment in the Nature of a Substitute To Be Offered by 
 Representative Hensarling of Texas, or His Designee, Debatable for 40 
                                Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2005.

  (a) Declaration.--The Congress declares that the concurrent 
resolution on the budget for fiscal year 2005 is hereby 
established and that the appropriate budgetary levels for 
fiscal years 2004 and 2006 through 2009 are hereby 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 2005.

                 TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Major functional categories.

             TITLE II--RECONCILIATION AND REPORT SUBMISSIONS

Sec. 201. Reconciliation in the House of Representatives.
Sec. 202. Submission of report on defense savings.

           TITLE III--RESERVE FUNDS AND CONTINGENCY PROCEDURE

 Subtitle A--Reserve Funds for Legislation Assumed in Budget Aggregates

Sec. 301. Deficit-neutral reserve fund for health insurance for the 
          uninsured.
Sec. 302. Deficit-neutral reserve fund for the Family Opportunity Act.
Sec. 303. Deficit-neutral reserve fund for Military Survivors' Benefit 
          Plan.
Sec. 304. Reserve fund for pending legislation.

                    Subtitle B--Contingency Procedure

Sec. 311. Contingency procedure for surface transportation.

                      TITLE IV--BUDGET ENFORCEMENT

Sec. 401. Defense firewall.
Sec. 402. Restrictions on advance appropriations.
Sec. 403. Emergency spending.
Sec. 404. Enforcement of budget aggregates.
Sec. 405. Compliance with section 13301 of the Budget Enforcement Act of 
          1990.
Sec. 406. Action pursuant to section 302(b)(1) of the Congressional 
          Budget Act.
Sec. 407. Family budget protection accounts-discretionary spending.
Sec. 408. Family budget protection accounts; mandatory spending.
Sec. 409. Changes in allocations and aggregates resulting from realistic 
          scoring of measures affecting revenues.
Sec. 410. Prohibition on using revenue increases to comply with budget 
          allocations and aggregates.
Sec. 411. Application and effect of changes in allocations and 
          aggregates.

                       TITLE V--SENSE OF THE HOUSE

Sec. 501. Sense of the House on spending accountability.
Sec. 502. Sense of the House on entitlement reform.
Sec. 503. Sense of House regarding the abolishment of obsolete agencies 
          and Federal sunset proposals.
Sec. 504. Sense of the House regarding the goals of this concurrent 
          resolution and the elimination of certain programs.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2004 through 2009:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2004: $1,272,787,000,000.
                          Fiscal year 2005: $1,456,134,000,000.
                          Fiscal year 2006: $1,610,181,000,000.
                          Fiscal year 2007: $1,720,721,000,000.
                          Fiscal year 2008: $1,809,790,000,000.
                          Fiscal year 2009: $1,907,703,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                          Fiscal year 2004: $0.
                          Fiscal year 2005: $23,000,000,000.
                          Fiscal year 2006: $44,000,000,000.
                          Fiscal year 2007: $34,223,000,000.
                          Fiscal year 2008: $36,000,000,000.
                          Fiscal year 2009: $45,357,000,000.
          (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 2004: $1,952,700,000,000.
                  Fiscal year 2005: $1,995,627,000,000.
                  Fiscal year 2006: $2,052,943,000,000.
                  Fiscal year 2007: $2,171,940,000,000.
                  Fiscal year 2008: $2,285,426,000,000.
                  Fiscal year 2009: $2,399,316,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2004: $1,911,235,000,000.
                  Fiscal year 2005: $1,993,628,000,000.
                  Fiscal year 2006: $2,066,992,000,000.
                  Fiscal year 2007: $2,151,234,000,000.
                  Fiscal year 2008: $2,254,679,000,000.
                  Fiscal year 2009: $2,365,995,000,000.
          (4) Deficits (on-budget).--For purposes of the 
        enforcement of this resolution, the amounts of the 
        deficits (on-budget) are as follows:
                  Fiscal year 2004: $638,448,000,000.
                  Fiscal year 2005: $539,494,000,000.
                  Fiscal year 2006: $456,811,000,000.
                  Fiscal year 2007: $430,513,000,000.
                  Fiscal year 2008: $444,889,000,000.
                  Fiscal year 2009: $458,292,000,000.
          (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 2004: $7,436,000,000,000.
                  Fiscal year 2005: $8,086,000,000,000.
                  Fiscal year 2006: $8,867,000,000,000.
                  Fiscal year 2007: $9,227,000,000,000.
                  Fiscal year 2008: $9,809,000,000,000.
                  Fiscal year 2009: $10,406,000,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2004: $4,385,000,000,000.
                  Fiscal year 2005: $4,765,000,000,000.
                  Fiscal year 2006: $5,055,000,000,000.
                  Fiscal year 2007: $5,300,000,000,000.
                  Fiscal year 2008: $5,547,000,000,000.
                  Fiscal year 2009: $5,795,000,000,000.

 SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2004 through 2009 for each major functional category are as 
follows:
          (1) National Defense (050):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $461,544,000,000.
                          (B) Outlays, $451,125,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $419,634,000,000.
                          (B) Outlays, $447,114,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $442,400,000,000.
                          (B) Outlays, $439,098,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $464,000,000,000.
                          (B) Outlays, $445,927,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $486,149,000,000.
                          (B) Outlays, $465,542,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $508,369,000,000.
                          (B) Outlays, $487,186,000,000.
          (2) Homeland Security (100):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $29,559,000,000.
                          (B) Outlays, $24,834,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $34,102,000,000.
                          (B) Outlays, $29,997,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $33,548,000,000.
                          (B) Outlays, $33,298,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $35,160,000,000.
                          (B) Outlays, $35,635,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $36,520,000,000.
                          (B) Outlays, $36,979,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $40,420,000,000.
                          (B) Outlays, $38,401,000,000.
          (3) International Affairs (150):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (4) General Science, Space, and Technology (250):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (5) Energy (270):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (6) Natural Resources and Environment (300):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (7) Agriculture (350):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (8) Commerce and Housing Credit (370):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (9) Transportation (400):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (10) Community and Regional Development (450):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (11) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (12) Health (550):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (13) Medicare (570):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (14) Income Security (600):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (15) Social Security (650):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (16) Veterans Benefits and Services (700):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (17) Administration of Justice (750):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (18) General Government (800):
                  Fiscal year 2004:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2005:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2006:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2007:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2008:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
                  Fiscal year 2009:
                          (A) New budget authority, an amount 
                        to be derived from function 920.
                          (B) Outlays, an amount to be derived 
                        from function 920.
          (19) Net Interest (900):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $240,471,000,000.
                          (B) Outlays, $240,471,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $270,507,000,000.
                          (B) Outlays, $270,507,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $318,306,000,000.
                          (B) Outlays, $318,306,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $363,189,000,000.
                          (B) Outlays, $363,189,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $396,474,000,000.
                          (B) Outlays, $396,474,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $424,724,000,000.
                          (B) Outlays, $424,724,000,000.
          (20) Allowances (920):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $1,268,359,000,000.
                          (B) Outlays, $1,242,038,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $1,323,733,000,000.
                          (B) Outlays, $1,298,485,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $1,313,116,000,000.
                          (B) Outlays, $1,330,767,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $1,372,233,000,000.
                          (B) Outlays, $1,370,250,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $1,431,768,000,000.
                          (B) Outlays, $1,421,831,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $1,486,659,000.
                          (B) Outlays, $1,475,577,000,000.
          (21) Undistributed Offsetting Receipts (950):
                  Fiscal year 2004:
                          (A) New budget authority, -
                        $47,233,000,000.
                          (B) Outlays, -$47,233,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, -
                        $52,349,000,000.
                          (B) Outlays, -$52,475,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, -
                        $54,427,000,000.
                          (B) Outlays, -$54,477,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, -
                        $62,642,000,000.
                          (B) Outlays, -$63,767,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, -
                        $65,485,000,000.
                          (B) Outlays, -$66,147,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, -
                        $60,856,000,000.
                          (B) Outlays, -$59,893,000,000.

            TITLE II--RECONCILIATION AND REPORT SUBMISSIONS

SEC. 201. RECONCILIATION IN THE HOUSE OF REPRESENTATIVES.

  (a) Submissions Providing for the Elimination of Waste, 
Fraud, and Abuse in Mandatory Programs.--
          (1) Not later than July 15, 2004, 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 $220,000,000 in outlays for fiscal 
                year 2005 and $3,100,000,000 in outlays for the 
                period of fiscal years 2005 through 2009.
                  (B) Committee on armed services.--The House 
                Committee on Armed Services shall report 
                changes in laws within its jurisdiction 
                sufficient to reduce the level of direct 
                spending for that committee by $50,000,000 in 
                outlays for fiscal year 2005 and $250,000,000 
                in outlays for the period of fiscal years 2005 
                through 2009.
                  (C) 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 $90,000,000 in outlays for fiscal year 2005 
                and $750,000,000 in outlays for the period of 
                fiscal years 2005 through 2009.
                  (D) 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 $1,530,000,000 
                in outlays for fiscal year 2005 and 
                $12,750,000,000 in outlays for the period of 
                fiscal years 2005 through 2009.
                  (E) 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 $50,000,000 in 
                new budget authority for fiscal year 2005 and 
                $190,000,000 in new budget authority for the 
                period of fiscal years 2005 through 2009.
                  (F) Committee on government reform.--The 
                House Committee on Government Reform shall 
                report changes in laws within its jurisdiction 
                sufficient to reduce the level of direct 
                spending for that committee by $200,000,000 in 
                outlays for fiscal year 2005 and $2,000,000,000 
                in outlays for the period of fiscal years 2005 
                through 2009.
                  (G) Committee on house administration.--The 
                House Committee on House Administration shall 
                report changes in laws within its jurisdiction 
                sufficient to reduce the level of direct 
                spending for that committee by $500,000 in 
                outlays for fiscal year 2005 and $3,000,000 in 
                outlays for the period of fiscal years 2005 
                through 2009.
                  (H) Committee on international relations.--
                The House Committee on International Relations 
                shall report changes in laws within its 
                jurisdiction sufficient to reduce the level of 
                direct spending for that committee by 
                $150,000,000 in outlays for fiscal year 2005 
                and $1,125,000,000 in outlays for the period of 
                fiscal years 2005 through 2009.
                  (I) 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 $80,000,000 in outlays for fiscal 
                year 2005 and $550,000,000 in outlays for the 
                period of fiscal years 2005 through 2009.
                  (J) 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 $50,000,000 in outlays for fiscal 
                year 2005 and $350,000,000 in outlays for the 
                period of fiscal years 2005 through 2009.
                  (K) Committee on science.--The House 
                Committee on Science shall report changes in 
                laws within its jurisdiction sufficient to 
                reduce the level of direct spending for that 
                committee by $1,000,000 in outlays for fiscal 
                year 2005 and $6,000,000 in outlays for the 
                period of fiscal years 2005 through 2009.
                  (L) Committee on small business.--The House 
                Committee on Small Business shall report 
                changes in laws within its jurisdiction 
                sufficient to reduce the level of direct 
                spending for that committee by $0 in outlays 
                for fiscal year 2005 and $0 in outlays for the 
                period of fiscal years 2005 through 2009.
                  (M) 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 $100,000,000 in 
                outlays for fiscal year 2005 and $1,150,000,000 
                in outlays for the period of fiscal years 2005 
                through 2009.
                  (N) Committee on veterans' affairs.--The 
                House Committee on Veterans' Affairs shall 
                report changes in laws within its jurisdiction 
                sufficient to reduce the level of direct 
                spending for that committee by $10,000,000 in 
                outlays for fiscal year 2005 and $125,000,000 
                in outlays for the period of fiscal years 2005 
                through 2009.
                  (O) Committee on ways and means.--The House 
                Committee on Ways and Means shall report 
                changes in laws within its jurisdiction 
                sufficient to reduce the level of direct 
                spending for that committee by $4,784,000,000 
                in outlays for fiscal year 2005 and 
                $38,947,000,000 in outlays for the period of 
                fiscal years 2005 through 2009.
                  (P) Special rule.--The chairman of the 
                Committee on the Budget may take into account 
                legislation enacted after the adoption of this 
                resolution that is determined to reduce the 
                deficit and may make applicable adjustments in 
                reconciliation instructions, allocations, and 
                budget aggregates and may also make adjustments 
                in reconciliation instructions to protect 
                earned benefit programs.
  (b) Submission Providing for the Extension of Expiring Tax 
Relief.--(1) The House Committee on Ways and Means shall report 
a reconciliation bill not later than October 1, 2004, that 
consists of changes in laws within its jurisdiction sufficient 
to reduce revenues by not more than $13,182,000,000 for fiscal 
year 2005 and by not more than $137,580,000,000 for the period 
of fiscal years 2005 through 2009.
  (2) If a reconciliation bill, as reported pursuant to 
paragraph (1), does not increase the deficit for fiscal year 
2005 or for the period of fiscal years 2005 through 2009 above 
the levels permitted in such paragraph, the chairman of the 
House Committee on the Budget may revise the reconciliation 
instructions under this section to permit the Committee on Ways 
and Means to increase the level of direct spending outlays, 
make conforming adjustments to the revenue instruction to 
decrease the reduction in revenues, and make conforming changes 
in allocations to the Committee on Ways and Means and in budget 
aggregates.
  (c) Submission Providing for Additional Tax Relief.--(1) The 
House Committee on Ways and Means shall report a reconciliation 
bill not later than October 1, 2004, that consists of changes 
in laws within its jurisdiction sufficient to reduce revenues 
by not more than $9,818,000,000 for fiscal year 2005 and by not 
more than $45,000,000,000 for the period of fiscal years 2005 
through 2009.
  (2) If a reconciliation bill, as reported pursuant to 
paragraph (1), does not increase the deficit for fiscal year 
2005 or for the period of fiscal years 2005 through 2009 above 
the levels permitted in such paragraph, the chairman of the 
House Committee on the Budget may revise the reconciliation 
instructions under this section to permit the Committee on Ways 
and Means to increase the level of direct spending outlays, 
make conforming adjustments to the revenue instruction to 
decrease the reduction in revenues, and make conforming changes 
in allocations to the Committee on Ways and Means and in budget 
aggregates.

SEC. 202. SUBMISSION OF REPORT ON DEFENSE SAVINGS.

  In the House, not later than May 15, 2004, the Committee on 
Armed Services shall submit to the Committee on the Budget its 
findings that identify $2,000,000,000 in savings from--
          (1) activities that are determined to be of a low 
        priority to the successful execution of current 
        military operations; or
          (2) activities that are determined to be wasteful or 
        unnecessary to national defense. Funds identified 
        should be reallocated to programs and activities that 
        directly contribute to enhancing the combat 
        capabilities of the U.S. military forces with an 
        emphasis on force protection, munitions, and 
        surveillance capabilities. For purposes of this 
        subsection, the report by the Committee on Armed 
        Services shall be inserted in the Congressional Record 
        by the chairman of the Committee on the Budget not 
        later than May 21, 2004.

           TITLE III--RESERVE FUNDS AND CONTINGENCY PROCEDURE

 Subtitle A--Reserve Funds for Legislation Assumed in Budget Aggregates

SEC. 301. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH INSURANCE FOR THE 
                    UNINSURED.

  In the House, if legislation is reported, or if an amendment 
thereto is offered or a conference report thereon is submitted, 
that provides health insurance for the uninsured, the chairman 
of the Committee on the Budget may make the appropriate 
adjustments in allocations and aggregates to the extent such 
measure is deficit neutral in fiscal year 2005 and for the 
period of fiscal years 2005 through 2009.

SEC. 302. DEFICIT-NEUTRAL RESERVE FUND FOR THE FAMILY OPPORTUNITY ACT.

  In the House, if the Committee on Energy and Commerce reports 
legislation, or if an amendment thereto is offered or a 
conference report thereon is submitted, that provides medicaid 
coverage for children with special needs (the Family 
Opportunity Act), the chairman of the Committee on the Budget 
may make the appropriate adjustments in allocations and 
aggregates to the extent such measure is deficit neutral in 
fiscal year 2005 and for the period of fiscal years 2005 
through 2009.

SEC. 303. DEFICIT-NEUTRAL RESERVE FUND FOR MILITARY SURVIVORS' BENEFIT 
                    PLAN.

  In the House, if the Committee on Armed Services reports 
legislation, or if an amendment thereto is offered or a 
conference report thereon is submitted, that increases 
survivors' benefits under the Military Survivors' Benefit Plan, 
the chairman of the Committee on the Budget may make the 
appropriate adjustments in allocations and aggregates to the 
extent such measure is deficit neutral resulting from a change 
other than to discretionary appropriations in fiscal year 2005 
and for the period of fiscal years 2005 through 2009.

SEC. 304. RESERVE FUND FOR PENDING LEGISLATION.

  In the House, for any bill, including a bill that provides 
for the safe importation of FDA-approved prescription drugs or 
places limits on medical malpractice litigation, that has 
passed the House in the first session of the 108th Congress 
and, after the date of adoption of this concurrent resolution, 
is acted on by the Senate, enacted by the Congress, and 
presented to the President, the chairman of the Committee on 
the Budget may make the appropriate adjustments in the 
allocations and aggregates to reflect any resulting savings 
from any such measure.

                   Subtitle B--Contingency Procedure

SEC. 311. CONTINGENCY PROCEDURE FOR SURFACE TRANSPORTATION.

  (a) IN GENERAL.--If the Committee on Transportation and 
Infrastructure of the House reports legislation, or if an 
amendment thereto is offered or a conference report thereon is 
submitted, that provides new budget authority for the budget 
accounts or portions thereof in the highway and transit 
categories as defined in sections 250(c)(4)(B) and (C) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 in 
excess of the following amounts:
          (1) For fiscal year 2004: $41,569,000,000;
          (2) For fiscal year 2005: $42,657,000,000;
          (3) For fiscal year 2006: $43,635,000,000;
          (4) For fiscal year 2007: $45,709,000,000;
          (5) For fiscal year 2008: $46,945,000,000; or
          (6) For fiscal year 2009: $47,732,000,000;
the chairman of the Committee on the Budget may adjust the 
appropriate budget aggregates and increase the allocation of 
new budget authority to such committee for fiscal year 2004, 
for fiscal year 2005, and for the period of fiscal years 2005 
through 2009 to the extent such excess is offset by a reduction 
in mandatory outlays from the Highway Trust Fund or an increase 
in receipts appropriated to such fund for the applicable fiscal 
year caused by such legislation or any previously enacted 
legislation.
  (b) Adjustment for Outlays.--For fiscal year 2004 or 2005, in 
the House, if a bill or joint resolution is reported, or if an 
amendment thereto is offered or a conference report thereon is 
submitted, that changes obligation limitations such that the 
total limitations are in excess of $40,116,000,000 for fiscal 
year 2004 or $41,204,000,000 for fiscal year 2005 for programs, 
projects, and activities within the highway and transit 
categories as defined in sections 250(c)(4)(B) and (C) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, and 
if legislation has been enacted that satisfies the conditions 
set forth in subsection (a) for such fiscal year, the chairman 
of the Committee on the Budget may increase the allocation of 
outlays and appropriate aggregates for such fiscal year for the 
committee reporting such measure by the amount of outlays that 
corresponds to such excess obligation limitations, but not to 
exceed the amount of such excess that was offset pursuant to 
subsection (a).

                      TITLE IV--BUDGET ENFORCEMENT

SEC. 401. DEFENSE FIREWALL.

  It shall not be in order in the Senate or in the House of 
Representatives to consider any bill making a general 
appropriation for fiscal year 2005 if the most recently 
reported allocations made pursuant to section 302(b)(1) of the 
Congressional Budget Act of 1974 sets out a level for the 
Defense Subcommittee and the Military Construction Subcommittee 
that when added together totals less than $402,000,000,000 in 
budget authority.

SEC. 402. RESTRICTIONS ON ADVANCE APPROPRIATIONS.

  (a) In General.--(1) In the House, except as provided in 
subsection (b), 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.
  (2) Managers on the part of the House may not agree to a 
Senate amendment that would violate paragraph (1) unless 
specific authority to agree to the amendment first is given by 
the House by a separate vote with respect thereto.
  (b) Exception.--In the House, an advance appropriation may be 
provided for fiscal year 2006 and fiscal years 2006 and 2007 
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 
$23,568,000,000 in new budget authority.
  (c) Definition.--In this section, the term ``advance 
appropriation'' means any discretionary new budget authority in 
a bill or joint resolution making general appropriations or 
continuing appropriations for fiscal year 2005 that first 
becomes available for any fiscal year after 2005.

SEC. 403. EMERGENCY SPENDING.

  (a) Exemption of Overseas Contingency Operations.-- 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 makes supplemental appropriations for fiscal year 
2005 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, 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) 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 section, then the new budget authority, new entitlement 
authority, outlays, and receipts resulting therefrom shall not 
count for purposes of sections 302, 303, 311, and 401 of the 
Congressional Budget Act of 1974.
  (c) Designations.--
          (1) Guidance.--In the House, if a provision of 
        legislation is designated as an emergency requirement 
        under subsection (b), 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 paragraph (2). 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.
          (2) Criteria.--
                  (A) In general.--Any such provision is an 
                emergency requirement if the underlying 
                situation poses a threat to life, property, or 
                national security and is--
                          (i) sudden, quickly coming into 
                        being, and not building up over time;
                          (ii) an urgent, pressing, and 
                        compelling need requiring immediate 
                        action;
                          (iii) subject to subparagraph (B), 
                        unforeseen, unpredictable, and 
                        unanticipated; and
                          (iv) not permanent, temporary in 
                        nature.
                  (B) Unforeseen.--An emergency that is part of 
                an aggregate level of anticipated emergencies, 
                particularly when normally estimated in 
                advance, is not unforeseen.
  (d) Enforcement.--It shall not be in order in the House of 
Representatives to consider any bill, joint resolution, 
amendment or conference report that contains an emergency 
designation unless that designation meets the criteria set out 
in subsection (c)(2).
  (e) Enforcement in the House of Representatives.--It shall 
not be in order in the House of Representatives to consider a 
rule or order that waives the application of subsection (d).
  (f) Disposition of Points of Order in the House.--As 
disposition of a point of order under subsection (d) or 
subsection (e), the Chair shall put the question of 
consideration with respect to the proposition that is the 
subject of the point of order. A question of consideration 
under this section shall be debatable for 10 minutes by the 
Member initiating the point of order and for 10 minutes by an 
opponent of the point of order, but shall otherwise be decided 
without intervening motion except one that the House adjourn or 
that the Committee of the Whole rise, as the case may be.

SEC. 404. ENFORCEMENT OF BUDGET AGGREGATES.

  (a) In General.--Except as provided by subsection (b) of this 
section, it shall not be in order in the House of 
Representatives to consider any bill, joint resolution, 
amendment, motion, or conference report providing new budget 
authority or providing new entitlement authority, if--
          (1) the enactment of that bill or resolution;
          (2) the adoption and enactment of that amendment; or
          (3) the enactment of that bill or resolution in the 
        form recommended in that conference report;
would cause for any fiscal year covered by this resolution the 
appropriate allocation made pursuant to section 302(a)(1) of 
the Congressional Budget Act of 1974 to be exceeded.
  (b) Exception.--Subsection (a) of this section shall not 
apply to any bill, joint resolution or conference report that 
only provides continuing appropriations.
  (c) Enforcement in the House of Representatives.--It shall 
not be in order in the House of Representatives to consider a 
rule or order that waives the application of subsection (a).
  (d) Disposition of Points of Order in the House.--As 
disposition of a point of order under subsection (a) or 
subsection (c), the Chair shall put the question of 
consideration with respect to the proposition that is the 
subject of the point of order. A question of consideration 
under this section shall be debatable for 10 minutes by the 
Member initiating the point of order and for 10 minutes by an 
opponent of the point of order, but shall otherwise be decided 
without intervening motion except one that the House adjourn or 
that the Committee of the Whole rise, as the case may be.
  (e) Effect on Amendment in Order as Original Text in the 
House.--The disposition of the question of consideration under 
this section with respect to a bill or joint resolution shall 
be considered also to determine the question of consideration 
under this subsection with respect to an amendment made in 
order as original text.

SEC. 405. COMPLIANCE WITH SECTION 13301 OF THE BUDGET ENFORCEMENT ACT 
                    OF 1990.

  (a) In General.--In the House, 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. 406. ACTION PURSUANT TO SECTION 302(B)(1) OF THE CONGRESSIONAL 
                    BUDGET ACT.

  (a) Compliance.--When complying with section 302(b)(1) of the 
Congressional Budget Act of 1974, the Committee on 
Appropriations of each House shall consult with the Committee 
on Appropriations of the other House to ensure that the 
allocation of budget outlays and new budget authority among 
each Committee's subcommittees are identical.
  (b) Report.--The Committee on Appropriations of each House 
shall report to its House when it determines that the report 
made by the Committee pursuant to section 301(b) of the 
Congressional Budget Act of 1974 and the report made by the 
Committee on Appropriations of the other House pursuant to the 
same provision contain identical allocations of budget outlays 
and new budget authority among each Committee's subcommittees.
  (c) Point of Order.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint 
resolution, amendment, motion, or conference report providing 
new discretionary budget authority for Fiscal Year 2004 
allocated to the Committee on Appropriations unless and until 
the Committee on Appropriations of that House has made the 
report required under paragraph (b) of this section.

SEC. 407. FAMILY BUDGET PROTECTION ACCOUNTS - DISCRETIONARY SPENDING.

  (a) The chairman of the Committee on the Budget shall 
maintain a ledger to be known as the ``Discretionary Spending 
Ledger''. The Ledger shall be divided into entries 
corresponding to the subcommittees of the Committee on 
Appropriations and each entry shall consist of the `Deficit 
Reduction Safeguard Balance'.
  (b) Each entry shall consist only of amounts credited to it 
under paragraph (c). No entry of a negative amount shall be 
made.
  (c) Whenever a Member offers an amendment to an appropriation 
bill to reduce new budget authority in any account, that Member 
may state the portion of such reduction that shall be--
          (1) credited to the Deficit Reduction Safeguard 
        Balance;
          (2) used to offset an increase in new budget 
        authority in any other account; or
          (3) allowed to remain within the applicable section 
        302(b) suballocation.
  If no such statement is made, the amount of reduction in new 
budget authority resulting from the amendment shall be credited 
to the Deficit Reduction Safeguard Balance, as applicable, if 
the amendment is agreed to.
  (d) Except as provided by paragraph (e), the chairman of the 
Committee on the Budget shall, upon the engrossment of any 
appropriation bill by the House of Representatives, credit to 
the entry balance amounts of new budget authority and outlays 
equal to the net amounts of reductions in new budget authority 
and in outlays resulting from amendments agreed to by the House 
to that bill.
  (e) When computing the net amounts of reductions in new 
budget authority and in outlays resulting from amendments 
agreed to by the House to an appropriation bill, the chairman 
of the Committee on the Budget shall only count those portions 
of such amendments agreed to that were so designated by the 
Members offering such amendments as amounts to be credited to 
the Deficit Reduction Safeguard Balance, or that fall within 
the last sentence of subparagraph (c).
  (f) The chairman of the Committee on the Budget shall 
maintain a running tally of the amendments adopted reflecting 
increases and decreases of budget authority in the bill as 
reported. This tally shall be available to Members during 
consideration of any appropriation bill by the House.
  (g) For purposes of enforcing section 302(a) of the 
Congressional Budget Act of 1974, upon the engrossment of any 
appropriation bill by the House, the amount of budget authority 
and outlays calculated pursuant to subparagraph (e) shall be 
counted against the 302(a) allocation provided to the Committee 
on Appropriations as if the amount calculated pursuant to such 
clause was included in the bill just engrossed.
  (h) For purposes of enforcing section 302(b) of the 
Congressional Budget Act of 1974, upon the engrossment of any 
appropriation bill by the House, the 302(b) allocation provided 
to the subcommittee for the bill just engrossed shall be deemed 
to have been reduced by the amount of budget authority and 
outlays calculated, pursuant to subparagraph (e).
  (i) As used in this section, the term `appropriation bill' 
means any general or special appropriation bill, and any bill 
or joint resolution making supplemental, deficiency, or 
continuing appropriations through the end of fiscal year 2004 
or any subsequent fiscal year, as the case may be.

SEC. 408. FAMILY BUDGET PROTECTION ACCOUNTS; MANDATORY SPENDING.

  (a) The chairman of the Committee on the Budget shall 
maintain a ledger to be known as the ``Mandatory Spending 
Ledger''. The Ledger shall be divided into entries 
corresponding to the House committees that received allocations 
under section 302(a) of the Congressional Budget Act of 1974 as 
a result of this concurrent resolution, except that it shall 
not include the Committee on Appropriations and each entry 
shall consist of the ``First Year Deficit Reduction Safeguard 
Balance'' and the ``Five Year Deficit Reduction Safeguard 
Balance''.
  (b) Each entry shall consist only of amounts credited to it 
under paragraph (c). No entry of a negative amount shall be 
made.
  (c) Whenever a Member offers an amendment to a bill that 
reduces the amount of mandatory budget authority provided 
either under current law or proposed to be provided by the bill 
under consideration, that Member may state the portion of such 
reduction achieved in the first year covered by this concurrent 
resolution and in addition the portion of such reduction 
achieved in the first five years covered by this concurrent 
resolution that shall be--
          (1) credited to the First Year Deficit Reduction 
        Safeguard Balance and the Five Year Deficit Reduction 
        Safeguard Balance;
          (2) used to offset an increase in other new budget 
        authority; or
          (3) allowed to remain within the applicable section 
        302(a) allocation.
  If no such statement is made, the amount of reduction in new 
budget authority resulting from the amendment shall be credited 
to the First Year Deficit Reduction Safeguard Balance and the 
Five Year Deficit Reduction Safeguard Balance, as applicable, 
if the amendment is agreed to.
  (d) Except as provided by subparagraph (e), the chairman of 
the Committee on the Budget shall, upon the engrossment of any 
bill, other than an appropriation bill, by the House, credit to 
the applicable entry balances amounts of new budget authority 
and outlays equal to the net amounts of reductions in budget 
authority and in outlays resulting from amendments agreed to by 
the House to that bill.
  (e) When computing the net amounts of reductions in budget 
authority and in outlays resulting from amendments agreed to by 
the House to a bill, the chairman of the Committee on the 
Budget shall only count those portions of such amendments 
agreed to that were so designated by the Members offering such 
amendments as amounts to be credited to the First Year Deficit 
Reduction Safeguard Balance and the Five Year Deficit Reduction 
Safeguard Balance, or that fall within the last sentence of 
subparagraph (c).
  (f) The chairman of the Committee on the Budget shall 
maintain a running tally of the amendments adopted reflecting 
increases and decreases of budget authority in the bill as 
reported. This tally shall be available to Members during 
consideration of any bill by the House.
  (g) For the purposes of enforcing section 302(a) of the 
Congressional Budget Act of 1974, upon the engrossment of any 
bill, other than an appropriation bill, by the House, the 
amount of budget authority and outlays calculated pursuant to 
subparagraph (e) shall be counted against the 302(a) allocation 
provided to the applicable committee or committees which 
reported the bill as if the amount calculated pursuant to 
subparagraph (e) was included in the bill just engrossed.
  (h) As used in this section, the term `appropriation bill' 
means any general or special appropriation bill, and any bill 
or joint resolution making supplemental, deficiency, or 
continuing appropriations through the end of fiscal year 2004 
or any subsequent fiscal year, as the case may be.

SEC. 409. CHANGES IN ALLOCATIONS AND AGGREGATES RESULTING FROM 
                    REALISTIC SCORING OF MEASURES AFFECTING REVENUES.

  (a) Whenever the House considers a bill, joint resolution, 
amendment, motion or conference report, including measures 
filed in compliance with section 201(b) or 201(c) of this 
concurrent resolution, that propose to change Federal revenues, 
the impact of such measure on Federal revenues shall be 
calculated by the Joint Committee on Taxation in a manner that 
takes into account:
          (1) the impact of the proposed revenue changes on--
                  (A) Gross Domestic Product, including the 
                growth rate for the Gross Domestic Product;
                  (B) Total Domestic Employment;
                  (C) Gross Private Domestic Investment;
                  (D) General Price Index;
                  (E) Interest Rates; and
                  (F) Other economic variables
          (2) the impact on Federal Revenue of the changes in 
        economic variables analyzed under subpart (1) of this 
        paragraph.
  (b) The Chairman of the Committee on the Budget may make any 
necessary changes to allocations and aggregates in order to 
conform this concurrent resolution with the determinations made 
by the Joint Committee on Taxation pursuant to paragraph (a) of 
this section.

SEC. 410. PROHIBITION ON USING REVENUE INCREASES TO COMPLY WITH BUDGET 
                    ALLOCATIONS AND AGGREGATES.

  (a) For the purpose of enforcing this concurrent resolution 
in the House, the chairman of the Committee on the Budget shall 
not take into account the provisions of any piece of 
legislation which propose to increase revenue or offsetting 
collections if the net effect of the bill is to increase the 
level of revenue or offsetting collections beyond the level 
assumed in this concurrent resolution.
  (b) Subsection (a) of this section shall not apply to any 
provision of a piece of legislation that proposes a new or 
increased fee for the receipt of a defined benefit or service 
(including insurance coverage) by the person or entity paying 
the fee.

 SEC. 411. 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 to carry out this 
        resolution.

                      TITLE V--SENSE OF THE HOUSE

SEC. 501. SENSE OF THE HOUSE ON SPENDING ACCOUNTABILITY.

  It is the sense of the House that--
          (1) authorizing committees should actively engage in 
        oversight utilizing--
                  (A) the plans and goals submitted by 
                executive agencies pursuant to the Government 
                Performance and Results Act of 1993; and
                  (B) the performance evaluations submitted by 
                such agencies (that are based upon the Program 
                Assessment Rating Tool which is designed to 
                improve agency performance);
        in order to enact legislation to eliminate waste, 
        fraud, and abuse to ensure the efficient use of 
        taxpayer dollars;
          (2) all Federal programs should be periodically 
        reauthorized and funding for unauthorized programs 
        should be level-funded in fiscal year 2005 unless there 
        is a compelling justification;
          (3) committees should submit written justifications 
        for earmarks and should consider not funding those most 
        egregiously inconsistent with national policy;
          (4) the fiscal year 2005 budget resolution should be 
        vigorously enforced and legislation should be enacted 
        establishing statutory limits on appropriations and a 
        PAY-AS-YOU-GO rule for new and expanded entitlement 
        programs; and
          (5) Congress should make every effort to offset 
        nonwar-related supplemental appropriations.

 SEC. 502. SENSE OF THE HOUSE ON ENTITLEMENT REFORM.

  (a) Findings.--The House finds that welfare was successfully 
reformed through the application of work requirements, 
education and training opportunity, and time limits on 
eligibility.
  (b) Sense of the House.--It is the sense of the House that 
authorizing committees should--
          (1) systematically review all means-tested 
        entitlement programs and track beneficiary 
        participation across programs and time;
          (2) enact legislation to develop common eligibility 
        requirements for means-tested entitlement programs;
          (3) enact legislation to accurately rename means-
        tested entitlement programs;
          (4) enact legislation to coordinate program benefits 
        in order to limit to a reasonable period of time the 
        Government dependency of means-tested entitlement 
        program participants;
          (5) evaluate the costs of, and justifications for, 
        nonmeans-tested, nonretirement-related entitlement 
        programs; and
          (6) identify and utilize resources that have 
        conducted cost-benefit analyses of participants in 
        multiple means- and nonmeans-tested entitlement 
        programs to understand their cumulative costs and 
        collective benefits.

SEC. 503. SENSE OF HOUSE REGARDING THE ABOLISHMENT OF OBSOLETE AGENCIES 
                    AND FEDERAL SUNSET PROPOSALS.

  (a) The House finds that--
          (1) the National Commission on the Public Service's 
        recent report, ``Urgent Business For America: 
        Revitalizing The Federal Government For The 21st 
        Century,'' states that government missions are so 
        widely dispersed among so many agencies that no 
        coherent management is possible. The report also states 
        that fragmentation leaves many gaps, inconsistencies, 
        and inefficiencies in government oversight and results 
        in an unacceptable level of public health protection;
          (2) according to the Commission, there are: more than 
        35 food safety laws administered by 12 different 
        Federal agencies; 541 clean air, water, and waste 
        programs in 29 Federal agencies; 50 different programs 
        to aid the homeless in eight different Federal 
        agencies; and 27 teen pregnancy programs operated in 
        nine Federal agencies; and 90 early childhood programs 
        scattered among 11 Federal agencies;
          (3) according to the General Accounting Office (GAO), 
        there are 163 programs with a job training or 
        employment function, 64 welfare programs of a similar 
        nature, and more than 500 urban aid programs;
          (4) GAO also indicates 13 agencies coordinate 342 
        economic development programs, but there is very little 
        or no coordination between them. This situation has 
        created a bureaucracy so complex that many local 
        communities stop applying for economic assistance. At 
        the same time, the GAO reports that these programs 
        often serve as nothing more than funnels for pork, have 
        ``no significant effect'' on the economy, and cost as 
        much as $307,000 to create each job;
          (5) in 1976, Colorado became the first state to 
        implement a sunset mechanism. Today, about half of the 
        nation's states have some sort of sunset mechanism in 
        effect to monitor their legislative branch agencies. On 
        the Federal level, the United States Senate in 1978 
        overwhelmingly passed legislation to sunset most of the 
        Federal Government agencies by a vote of 87-1; and
          (6) in Texas, ``sunsetting'' has eliminated 44 
        agencies and saved the taxpayers $720 million compared 
        with expenditures of $16.94 million for the Sunset 
        Commission. Based on these estimates, for every dollar 
        spent on the Sunset process, the State has received 
        about $42.50 in return.
  (b) It is the sense of the House of Representatives that 
legislation providing for the orderly abolishment of obsolete 
Agencies and providing a Federal sunset for government programs 
should be enacted during this Congress.

SEC. 504. SENSE OF THE HOUSE REGARDING THE GOALS OF THIS CONCURRENT 
                    RESOLUTION AND THE ELIMINATION OF CERTAIN PROGRAMS.

  (a) The House of Representatives finds that--
          (1) the concurrent resolution on the budget for 
        Fiscal Year 2005 should achieve the following key 
        goals:
                  (A) Ensure adequate funding is available for 
                essential government programs, in particular 
                defense and homeland security.
                  (B) Foster greater economic growth and 
                increased domestic employment by eliminating 
                those provisions in the tax code that 
                discourage economic growth and job creation and 
                by extending existing tax relief provisions so 
                as to prevent an automatic tax increase.
                  (C) Bring the Federal budget back into 
                balance as soon as possible.
          (2) the Federal Government spends billions of dollars 
        each year on programs and projects that are of marginal 
        value to the country as a whole;
          (3) funding for these lower priority programs should 
        be viewed in light of the goals of this concurrent 
        resolution and whether or not continued funding of 
        these programs advances or hinders the achievement of 
        these goals; and
          (4) this concurrent resolution assumes that funding 
        for many lower priority programs will be reduced or 
        eliminated in order increase funding for defense and 
        homeland security while at the same time controlling 
        overall spending.
  (b) It is the sense of the House of Representatives that the 
following programs should be eliminated:
          (1) Title X Family Planning.
          (2) Corporation for Public Broadcasting.
          (3) National Endowment for the Arts.
          (4) Legal Services Corporation.
          (5) The Advanced Technology Program.
                              ----------                              


    4. An Amendment in the Nature of a Substitute To Be Offered by 
Representative Spratt of South Carolina, or His Designee, Debatable for 
                               60 Minutes

  Strike all after the resolving clause and insert the 
following:

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2005.

  The Congress declares that the concurrent resolution on the 
budget for fiscal year 2005 is hereby established and that the 
appropriate levels for fiscal years 2004 and 2006 through 2014 
are hereby set forth.

SEC. 2. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2004 through 2014:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2004: $1,272,700,000,000.
                          Fiscal year 2005: $1,468,600,000,000.
                          Fiscal year 2006: $1,637,300,000,000.
                          Fiscal year 2007: $1,759,100,000,000.
                          Fiscal year 2008: $1,854,700,000,000.
                          Fiscal year 2009: $1,965,800,000,000.
                          Fiscal year 2010: $2,075,800,000,000.
                          Fiscal year 2011: $2,290,100,000,000.
                          Fiscal year 2012: $2,494,600,000,000.
                          Fiscal year 2013: $2,628,900,000,000.
                          Fiscal year 2014: $2,773,500,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be changed are as 
                follows:
                          Fiscal year 2004: -$100,000,000.
                          Fiscal year 2005: -$8,600,000,000.
                          Fiscal year 2006: -$16,900,000,000.
                          Fiscal year 2007: $4,200,000,000.
                          Fiscal year 2008: $8,900,000,000.
                          Fiscal year 2009: $12,700,000,000.
                          Fiscal year 2010: $12,200,000,000.
                          Fiscal year 2011: $8,500,000,000.
                          Fiscal year 2012: $10,200,000,000.
                          Fiscal year 2013: $10,900,000,000.
                          Fiscal year 2014: $11,600,000,000.
          (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 2004: $1,958,600,000,000.
                  Fiscal year 2005: $2,031,900,000,000.
                  Fiscal year 2006: $2,087,300,000,000.
                  Fiscal year 2007: $2,220,200,000,000.
                  Fiscal year 2008: $2,343,600,000,000.
                  Fiscal year 2009: $2,470,500,000,000.
                  Fiscal year 2010: $2,576,700,000,000.
                  Fiscal year 2011: $2,699,400,000,000.
                  Fiscal year 2012: $2,778,100,000,000.
                  Fiscal year 2013: $2,905,800,000,000.
                  Fiscal year 2014: $3,033,300,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2004: $1,917,600,000,000.
                  Fiscal year 2005: $2,015,800,000,000.
                  Fiscal year 2006: $2,094,000,000,000.
                  Fiscal year 2007: $2,194,000,000,000.
                  Fiscal year 2008: $2,305,700,000,000.
                  Fiscal year 2009: $2,427,200,000,000.
                  Fiscal year 2010: $2,542,800,000,000.
                  Fiscal year 2011: $2,674,000,000,000.
                  Fiscal year 2012: $2,746,200,000,000.
                  Fiscal year 2013: $2,879,000,000,000.
                  Fiscal year 2014: $3,006,300,000,000.
          (4) Deficits.--For purposes of the enforcement of 
        this resolution, the amounts of the deficits (on-
        budget) are as follows:
                  Fiscal year 2004: -$644,900,000,000.
                  Fiscal year 2005: -$547,300,000,000.
                  Fiscal year 2006: -$456,700,000,000.
                  Fiscal year 2007: -$434,900,000,000.
                  Fiscal year 2008: -$451,100,000,000.
                  Fiscal year 2009: -$461,400,000,000.
                  Fiscal year 2010: -$467,000,000,000.
                  Fiscal year 2011: -$383,900,000,000.
                  Fiscal year 2012: -$251,600,000,000.
                  Fiscal year 2013: -$250,100,000,000.
                  Fiscal year 2014: -$232,900,000,000.
          (5) Public debt.--The appropriate levels of the 
        public debt are as follows:
                  Fiscal year 2004: $7,442,400,000,000.
                  Fiscal year 2005: $8,090,100,000,000.
                  Fiscal year 2006: $8,671,000,000,000.
                  Fiscal year 2007: $9,227,000,000,000.
                  Fiscal year 2008: $9,799,200,000,000.
                  Fiscal year 2009: $10,384,600,000,000.
                  Fiscal year 2010: $10,978,600,000,000.
                  Fiscal year 2011: $11,488,000,000,000.
                  Fiscal year 2012: $11,880,700,000,000.
                  Fiscal year 2013: $12,267,100,000,000.
                  Fiscal year 2014: $12,638,200,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2004: $4,392,000,000,000.
                  Fiscal year 2005: $4,778,500,000,000.
                  Fiscal year 2006: $5,055,900,000,000.
                  Fiscal year 2007: $5,295,500,000,000.
                  Fiscal year 2008: $5,535,700,000,000.
                  Fiscal year 2009: $5,772,500,000,000.
                  Fiscal year 2010: $6,001,600,000,000.
                  Fiscal year 2011: $6,133,900,000,000.
                  Fiscal year 2012: $6,125,000,000,000.
                  Fiscal year 2013: $6,107,600,000,000.
                  Fiscal year 2014: $6,066,700,000,000.

SEC. 3. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2004 through 2014 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $463,600,000,000.
                          (B) Outlays, $453,000,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $422,200,000,000.
                          (B) Outlays, $448,300,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $445,700,000,000.
                          (B) Outlays, $441,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $466,700,000,000.
                          (B) Outlays, $448,400,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $488,000,000,000.
                          (B) Outlays, $467,500,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $510,400,000,000.
                          (B) Outlays, $489,300,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $522,600,000,000.
                          (B) Outlays, $508,900,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $533,600,000,000.
                          (B) Outlays, $528,900,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $545,900,000,000.
                          (B) Outlays, $534,200,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $558,200,000,000.
                          (B) Outlays, $551,000,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $572,000,000,000.
                          (B) Outlays, $564,000,000,000.
          (2) International Affairs (150):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $43,700,000,000.
                          (B) Outlays, $29,300,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $29,100,000,000.
                          (B) Outlays, $34,000,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $30,700,000,000.
                          (B) Outlays, $32,000,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $31,300,000,000.
                          (B) Outlays, $29,400,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $31,900,000,000.
                          (B) Outlays, $28,600,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $32,600,000,000.
                          (B) Outlays, $29,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $33,300,000,000.
                          (B) Outlays, $29,400,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $34,000,000,000.
                          (B) Outlays, $30,000,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $34,700,000,000.
                          (B) Outlays, $30,500,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $35,400,000,000.
                          (B) Outlays, $31,200,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $36,200,000,000.
                          (B) Outlays, $31,900,000,000.
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $23,400,000,000.
                          (B) Outlays, $22,300,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $23,800,000,000.
                          (B) Outlays, $23,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $24,100,000,000.
                          (B) Outlays, $23,700,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $24,600,000,000.
                          (B) Outlays, $24,100,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $25,100,000,000.
                          (B) Outlays, $24,500,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $25,700,000,000.
                          (B) Outlays, $25,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $26,200,000,000.
                          (B) Outlays, $25,500,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $26,800,000,000.
                          (B) Outlays, $26,000,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $27,300,000,000.
                          (B) Outlays, $26,600,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $27,900,000,000.
                          (B) Outlays, $27,100,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $28,500,000,000.
                          (B) Outlays, $27,700,000,000.
          (4) Energy (270):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $2,400,000,000.
                          (B) Outlays, $100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $2,500,000,000.
                          (B) Outlays, $800,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $2,400,000,000.
                          (B) Outlays, $1,200,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $2,400,000,000.
                          (B) Outlays, $800,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $2,400,000,000.
                          (B) Outlays, $400,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $2,100,000,000.
                          (B) Outlays, $700,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $2,300,000,000.
                          (B) Outlays, $800,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $2,400,000,000.
                          (B) Outlays, $1,000,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $2,500,000,000.
                          (B) Outlays, $1,400,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $2,500,000,000.
                          (B) Outlays, $1,400,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $2,600,000,000.
                          (B) Outlays, $1,800,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $32,300,000,000.
                          (B) Outlays, $30,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $33,600,000,000.
                          (B) Outlays, $32,300,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $34,400,000,000.
                          (B) Outlays, $34,300,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $35,400,000,000.
                          (B) Outlays, $35,300,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $36,300,000,000.
                          (B) Outlays, $36,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $37,800,000,000.
                          (B) Outlays, $37,400,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $38,600,000,000.
                          (B) Outlays, $37,900,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $39,500,000,000.
                          (B) Outlays, $38,700,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $40,400,000,000.
                          (B) Outlays, $39,500,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $41,300,000,000.
                          (B) Outlays, $40,400,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $42,400,000,000.
                          (B) Outlays, $41,400,000,000.
          (6) Agriculture (350):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $20,200,000,000.
                          (B) Outlays, $18,800,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $21,700,000,000.
                          (B) Outlays, $21,000,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $24,100,000,000.
                          (B) Outlays, $22,900,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $25,100,000,000.
                          (B) Outlays, $23,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $25,100,000,000.
                          (B) Outlays, $24,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $26,200,000,000.
                          (B) Outlays, $25,200,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $26,400,000,000.
                          (B) Outlays, $25,500,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $26,400,000,000.
                          (B) Outlays, $25,600,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $26,300,000,000.
                          (B) Outlays, $25,500,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $26,300,000,000.
                          (B) Outlays, $25,500,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $26,300,000,000.
                          (B) Outlays, $25,500,000,000.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $17,200,000,000.
                          (B) Outlays, $12,800,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $8,900,000,000.
                          (B) Outlays, $3,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $9,400,000,000.
                          (B) Outlays, $3,700,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $10,000,000,000.
                          (B) Outlays, $4,200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $10,300,000,000.
                          (B) Outlays, $3,500,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $10,900,000,000.
                          (B) Outlays, $3,800,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $11,100,000,000.
                          (B) Outlays, $4,200,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $9,800,000,000.
                          (B) Outlays, $2,900,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $9,900,000,000.
                          (B) Outlays, $3,200,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $10,100,000,000.
                          (B) Outlays, $3,100,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $10,200,000,000.
                          (B) Outlays, $3,200,000,000.
          (8) Transportation (400):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $69,200,000,000.
                          (B) Outlays, $65,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $72,100,000,000.
                          (B) Outlays, $68,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $73,500,000,000.
                          (B) Outlays, $71,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $76,100,000,000.
                          (B) Outlays, $73,700,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $78,100,000,000.
                          (B) Outlays, $75,500,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $79,600,000,000.
                          (B) Outlays, $76,800,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $79,400,000,000.
                          (B) Outlays, $76,600,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $80,300,000,000.
                          (B) Outlays, $78,100,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $81,100,000,000.
                          (B) Outlays, $79,700,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $82,000,000,000.
                          (B) Outlays, $81,400,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $83,000,000,000.
                          (B) Outlays, $83,000,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $16,700,000,000.
                          (B) Outlays, $16,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $16,000,000,000.
                          (B) Outlays, $17,000,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $15,900,000,000.
                          (B) Outlays, $16,300,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,200,000,000.
                          (B) Outlays, $16,300,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $16,400,000,000.
                          (B) Outlays, $16,200,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $16,800,000,000.
                          (B) Outlays, $16,500,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $17,100,000,000.
                          (B) Outlays, $16,600,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $17,500,000,000.
                          (B) Outlays, $16,700,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $17,800,000,000.
                          (B) Outlays, $17,000,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $18,200,000,000.
                          (B) Outlays, $17,400,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $18,600,000,000.
                          (B) Outlays, $17,700,000,000.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $89,400,000,000.
                          (B) Outlays, $86,400,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $98,500,000,000.
                          (B) Outlays, $90,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $95,700,000,000.
                          (B) Outlays, $95,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $96,300,000,000.
                          (B) Outlays, $95,600,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $96,900,000,000.
                          (B) Outlays, $95,800,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $98,400,000,000.
                          (B) Outlays, $97,100,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $99,800,000,000.
                          (B) Outlays, $98,700,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $101,900,000,000.
                          (B) Outlays, $100,700,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $103,900,000,000.
                          (B) Outlays, $102,800,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $106,000,000,000.
                          (B) Outlays, $104,900,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $108,200,000,000.
                          (B) Outlays, $107,000,000,000.
          (11) Health (550):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $241,800,000,000.
                          (B) Outlays, $239,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $254,600,000,000.
                          (B) Outlays, $250,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $259,600,000,000.
                          (B) Outlays, $259,700,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $274,300,000,000.
                          (B) Outlays, $273,800,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $294,400,000,000.
                          (B) Outlays, $293,600,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $316,900,000,000.
                          (B) Outlays, $313,900,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $337,100,000,000.
                          (B) Outlays, $336,200,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $360,900,000,000.
                          (B) Outlays, $359,800,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $387,000,000,000.
                          (B) Outlays, $386,000,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $415,700,000,000.
                          (B) Outlays, $414,400,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $446,800,000,000.
                          (B) Outlays, $445,500,000,000.
          (12) Medicare (570):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $269,600,000,000.
                          (B) Outlays, $268,800,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $288,200,000,000.
                          (B) Outlays, $289,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $323,000,000,000.
                          (B) Outlays, $322,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $362,800,000,000.
                          (B) Outlays, $363,10,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $388,100,000,000.
                          (B) Outlays, $338,100,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $414,700,000,000.
                          (B) Outlays, $414,300,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $442,900,000,000.
                          (B) Outlays, $443,200,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $479,600,000,000.
                          (B) Outlays, $479,500,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $505,500,000,000.
                          (B) Outlays, $505,000,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $551,000,000,000.
                          (B) Outlays, $551,300,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $596,700,000,000.
                          (B) Outlays, $596,700,000,000.
          (13) Income Security (600):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $335,800,000,000.
                          (B) Outlays, $342,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $343,300,000,000.
                          (B) Outlays, $346,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $343,000,000,000.
                          (B) Outlays, $345,400,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $348,900,000,000.
                          (B) Outlays, $350,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $363,200,000,000.
                          (B) Outlays, $364,800,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $374,000,000,000.
                          (B) Outlays, $375,100,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $386,000,000,000.
                          (B) Outlays, $386,800,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $403,000,000,000.
                          (B) Outlays, $403,600,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $393,500,000,000.
                          (B) Outlays, $394,000,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $408,100,000,000.
                          (B) Outlays, $408,500,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $419,100,000,000.
                          (B) Outlays, $419,800,000,000.
          (14) Social Security (650):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $13,400,000,000.
                          (B) Outlays, $13,400,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $15,100,000,000.
                          (B) Outlays, $15,100,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $16,600,000,000.
                          (B) Outlays, $16,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $18,000,000,000.
                          (B) Outlays, $18,000,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $20,000,000,000.
                          (B) Outlays, $20,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $22,000,000,000.
                          (B) Outlays, $22,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $24,300,000,000.
                          (B) Outlays, $24,300,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $28,100,000,000.
                          (B) Outlays, $28,100,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $31,100,000,000.
                          (B) Outlays, $31,100,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $33,900,000,000.
                          (B) Outlays, $33,900,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $36,800,000,000.
                          (B) Outlays, $36,800,000,000.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $61,500,000,000.
                          (B) Outlays, $60,100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $72,100,000,000.
                          (B) Outlays, $70,600,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $70,000,000,000.
                          (B) Outlays, $69,300,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $68,200,000,000.
                          (B) Outlays, $67,700,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $71,300,000,000.
                          (B) Outlays, $71,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $72,700,000,000.
                          (B) Outlays, $72,300,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $74,200,000,000.
                          (B) Outlays, $73,800,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $78,600,000,000.
                          (B) Outlays, $78,100,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $75,600,000,000.
                          (B) Outlays, $75,200,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $80,200,000,000.
                          (B) Outlays, $79,800,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $82,300,000,000.
                          (B) Outlays, $81,800,000,000.
          (16) Administration of Justice (750):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $41,200,000,000.
                          (B) Outlays, $39,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $42,500,000,000.
                          (B) Outlays, $41,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $40,200,000,000.
                          (B) Outlays, $40,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $41,100,000,000.
                          (B) Outlays, $41,200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $42,200,000,000.
                          (B) Outlays, $41,900,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $43,400,000,000.
                          (B) Outlays, $43,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $44,600,000,000.
                          (B) Outlays, $44,200,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $45,800,000,000.
                          (B) Outlays, $45,400,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $47,100,000,000.
                          (B) Outlays, $46,700,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $48,400,000,000.
                          (B) Outlays, $48,000,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $49,800,000,000.
                          (B) Outlays, $49,300,000,000.
          (17) General Government (800):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $24,000,000,000.
                          (B) Outlays, $24,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $19,400,000,000.
                          (B) Outlays, $19,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $19,900,000,000.
                          (B) Outlays, $19,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $20,500,000,000.
                          (B) Outlays, $20,200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $20,700,000,000.
                          (B) Outlays, $20,400,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $21,400,000,000.
                          (B) Outlays, $20,900,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $22,100,000,000.
                          (B) Outlays, $21,600,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $22,900,000,000.
                          (B) Outlays, $22,300,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $23,600,000,000.
                          (B) Outlays, $23,300,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $24,400,000,000.
                          (B) Outlays, $23,900,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $25,200,000,000.
                          (B) Outlays, $24,600,000,000.
          (18) Interest (900):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $240,500,000,000.
                          (B) Outlays, $240,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $270,800,000,000.
                          (B) Outlays, $270,800,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $318,900,000,000.
                          (B) Outlays, $318,900,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $364,000,000,000.
                          (B) Outlays, $364,000,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $397,600,000,000.
                          (B) Outlays, $397,600,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $426,000,000,000.
                          (B) Outlays, $426,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $452,200,000,000.
                          (B) Outlays, $452,200,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $474,700,000,000.
                          (B) Outlays, $474,700,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $493,400,000,000.
                          (B) Outlays, $493,400,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $507,400,000,000.
                          (B) Outlays, $507,400,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $522,400,000,000.
                          (B) Outlays, $522,400,000,000.
          (19) Allowances (920):
                  Fiscal year 2004:
                          (A) New budget authority, $0.
                          (B) Outlays, $0.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $50,000,000,000.
                          (B) Outlays, $24,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, $0.
                          (B) Outlays, $18,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, $0.
                          (B) Outlays, $5,100,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, $0.
                          (B) Outlays, $1,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, $0.
                          (B) Outlays, $300,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, $0.
                          (B) Outlays, $0.
                  Fiscal year 2011:
                          (A) New budget authority, $0.
                          (B) Outlays, $0.
                  Fiscal year 2012:
                          (A) New budget authority, $0.
                          (B) Outlays, $0.
                  Fiscal year 2013:
                          (A) New budget authority, $0.
                          (B) Outlays, $0.
                  Fiscal year 2014:
                          (A) New budget authority, $0.
                          (B) Outlays, $0.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$47,200,000,000.
                          (B) Outlays, -$47,200,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$52,500,000,000.
                          (B) Outlays, -$52,500,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$59,800,000,000.
                          (B) Outlays, -$59,800,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$61,800,000,000.
                          (B) Outlays, -$61,800,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$64,500,000,000.
                          (B) Outlays, -$64,500,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$61,200,000,000.
                          (B) Outlays, -$61,200,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$63,600,000,000.
                          (B) Outlays, -$63,600,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$66,100,000,000.
                          (B) Outlays, -$66,100,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        -$68,800,000,000.
                          (B) Outlays, -$68,800,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        -$71,400,000,000.
                          (B) Outlays, -$71,400,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        -$73,800,000,000.
                          (B) Outlays, -$73,800,000,000.

            TITLE II--RECONCILIATION AND REPORT SUBMISSIONS

SEC. 201. SUBMISSIONS BY THE HOUSE COMMITTEE ON WAYS AND MEANS FOR 
                    RESPONSIBLE TAX RELIEF.

  (a) Submission.--Not later than October 1, 2004, the House 
Committee on Ways and Means shall report a reconciliation bill 
to the House adjusting revenues in such amounts necessary to 
meet the revenue targets contained in section 2 of this 
resolution.
  (b) Policy Assumptions.--It is the policy of this budget 
resolution to balance deficit reduction with middle-income tax 
relief. Such tax policies shall include but not be limited to 
provisions that--
          (1) extend the child tax credit;
          (2) extend marriage penalty relief;
          (C) extend the 10 percent individual tax bracket;
          (4) provide relief from the alternative minimum tax 
        for middle-income taxpayers;
          (5) eliminate estate taxes on all but the very 
        largest estates by reforming and substantially 
        increasing the unified credit;
          (6) extend the Research and Experimentation Tax 
        Credit and other expiring tax provisions;
          (7) accelerate refundability of the child tax credit 
        to fifteen percent in 2004 and include combat pay in 
        determining refundability in 2004 and all years 
        thereafter;
          (8) preserve American manufacturing jobs consistent 
        with the objectives delineated in H.R. 3827, the Job 
        Protection Act of 2004;
          (9) close corporate tax avoidance devices and 
        eliminate expatriation schemes for individuals and 
        corporations such as, but not limited to, those 
        provisions included in the President's budget;
          (10) reduce the tax cuts resulting from provisions 
        contained in 2001 and 2003 tax legislation passed by 
        Congress for taxpayers with annual adjusted gross 
        income (AGI) over $500,000; and
          (11) make new or extended tax cuts subject to PAYGO 
        offset requirements.
  (c) Flexibility for the Committee on Ways and Means.--If the 
reconciliation bill reported by the Committee on Ways and Means 
alters the Internal Revenue Code of 1986 in ways that are 
scored by the Joint Committee on Taxation as outlay changes, as 
through legislation affecting refundable tax credits, the bill 
shall be considered to meet the revenue requirements of the 
reconciliation directive if the net cost of the revenue and 
outlay changes does not exceed the revenue amount indicated for 
that committee in subsection (a). Upon the reporting of such 
legislation, the chairman of the House Committee on the Budget 
shall adjust the budget aggregates in this resolution and 
allocations made under this resolution accordingly.

SEC. 202. SUBMISSION PROVIDING FOR STRENGTHENED MEDICARE PRESCRIPTION 
                    DRUG BENEFIT.

  (a) In General.--Not later than October 1, 2004, the House 
committees named in subsection (b) 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 bill carrying out all such 
recommendations without any substantive revision.
  (b) Instructions.--
          (1) Committee on ways and means.--The House Committee 
        on Ways and Means shall report changes in law within 
        its jurisdiction to lower Medicare subsidies to private 
        plans under Medicare Advantage and to use such savings 
        to increase the value of the Medicare prescription drug 
        benefit.
          (2) Committee on energy and commerce.--The House 
        Committee on Energy and Commerce shall report changes 
        in law within its jurisdiction to lower Medicare 
        subsidies to private plans under Medicare Advantage and 
        to use such savings to increase the value of the 
        Medicare prescription drug benefit.
  (c) Special Rule.--In the House, notwithstanding subsections 
(a) and (b), no bill under this section may be considered 
unless the net effect of the legislation submitted by 
committees under such subparagraphs does not increase the 
aggregate deficit. The chairman of the Committee on the Budget 
may make the appropriate adjustments in allocations and 
aggregates to the extent such measure is deficit neutral in 
fiscal year 2005, for the period of fiscal years 2005 through 
2009, and for the period of fiscal years 2005 through 2014.

SEC. 203. ELIMINATING THE SOCIAL SECURITY OFFSET TO THE MILITARY 
                    SURVIVOR BENEFIT PLAN, SUBMISSION OF REPORT ON 
                    DEFENSE SAVINGS, AND OTHER DEFENSE-RELATED MATTERS.

  (a) Submission.--In the House, not later than May 15, 2004, 
the Committee on Armed Services shall submit to the Committee 
on the Budget its findings that identify $2,000,000,000 in 
annual discretionary savings from (1) activities that are 
determined to be of a low priority to the successful execution 
of current military operations; or (2) activities that are 
determined to be wasteful or unnecessary to national defense. 
These should be continuing savings, of a permanent nature, and 
sufficient to offset the recurring personnel costs in (b).
  (b) Policy Assumptions.--Recognizing the importance of the 
families of uniformed military personnel who have served and 
are currently serving our Nation, the Committee on the Budget 
instructs the Armed Services Committee to use the funds 
provided in the reconciliation directive for the purposes of 
eliminating the Social Security offset to the Military Survivor 
Benefits Program and raising the existing cap on the Military 
Housing Privatization Initiative. The funds identified in the 
first paragraph are to ensure that these programs will not 
further increase the deficit and are the basis upon which the 
Committee on the Budget issues the reconciliation directive to 
the Armed Services Committee in section 204.

SEC. 204. COMMITTEE ON ARMED SERVICES.

  In the House, not later than July 15, 2004, the Armed 
Services Committee shall report changes in laws within its 
jurisdiction sufficient to increase budget authority by not 
more than $2,000,000,000 and outlays by not more than 
$237,000,000 for fiscal year 2005 and by not more than 
$10,452,000,000 for budget authority and $7,107,000,000 for 
outlays for the period of fiscal years 2005 through 2009. The 
House Armed Services Committee is instructed to use this 
allocation to eliminate the Social Security offset to the 
Military Survivor Benefit Program and increase the cap on the 
Military Housing Privatization Initiative.

           TITLE III--RESERVE FUNDS AND CONTINGENCY PROCEDURE

                       Subtitle A--Reserve Funds

SEC. 301. RESERVE FUND FOR THE FAMILY OPPORTUNITY ACT.

  In the House, if the Committee on Energy and Commerce reports 
legislation, or if an amendment thereto is offered or a 
conference report thereon is submitted, that provides Medicaid 
coverage for children with special needs (the Family 
Opportunity Act), the chairman of the Committee on the Budget 
may make the appropriate adjustments in allocations and 
aggregates of new budget authority (and the outlays resulting 
therefrom) in this resolution by the amount provided by that 
measure for that purpose, but not to exceed $53,000,000 in new 
budget authority and $52,000,000 in outlays for fiscal year 
2005, and $7,952,000,000 in new budget authority and 
$7,626,000,000 in outlays for the period of fiscal years 2005 
through 2014.

SEC. 302. RESERVE FUND FOR THE STATE CHILDREN'S HEALTH INSURANCE 
                    PROGRAM.

  In the House, if the Committee on Energy and Commerce reports 
legislation, or if an amendment thereto is offered or a 
conference report thereon is submitted, that reallocates and 
maintains expiring State Children's Health Insurance Program 
funds within such program rather than allowing such funds to 
revert to the Treasury, the chairman of the Committee on the 
Budget may make the appropriate adjustments in allocations and 
aggregates of new budget authority (and the outlays resulting 
therefrom) in this resolution by the amount provided by that 
measure for that purpose, but not to exceed $1,115,000,000 in 
new budget authority and $100,000,000 in outlays for fiscal 
year 2005, and $1,115,000,000 in new budget authority and 
$1,115,000,000 in outlays for the period of fiscal years 2005 
through 2014.

SEC. 303. RESERVE FUND FOR TRANSITIONAL MEDICAID ASSISTANCE.

  In the House, if legislation is reported, or if an amendment 
thereto is offered or a conference report thereon is submitted, 
that extends transitional Medicaid assistance, the chairman of 
the Committee on the Budget may make the appropriate 
adjustments in allocations and aggregates of new budget 
authority (and the outlays resulting therefrom) in this 
resolution by the amount provided by that measure for that 
purpose, but not to exceed $23,000,000 in new budget authority 
and $23,000,000 in outlays for fiscal year 2004, $427,000,000 
in new budget authority and $427,000,000 in outlays for fiscal 
year 2005, and $3,471,000,000 in new budget authority and 
$3,471,000,000 in outlays for the period of fiscal years 2005 
through 2014.

SEC. 304. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH INSURANCE FOR THE 
                    UNINSURED.

  In the House, if legislation is reported, or if an amendment 
thereto is offered or a conference report thereon is submitted, 
that provides affordable, comprehensive health insurance to the 
uninsured and builds upon and strengthens public and private 
coverage, and prevents the erosion of existing coverage under 
Medicaid, which could include temporary extension of state 
fiscal relief by increasing the Medicaid match rate, the 
chairman of the Committee on the Budget may make the 
appropriate adjustments in allocations and aggregates to the 
extent such measure is deficit neutral (whether by changes in 
revenues or direct spending) in fiscal year 2005 and for the 
period of fiscal years 2005 through 2009.

                   Subtitle B--Contingency Procedure

SEC. 311. CONTINGENCY PROCEDURE FOR SURFACE TRANSPORTATION.

  (a) In General.--If the Committee on Transportation and 
Infrastructure of the House reports legislation, or if an 
amendment thereto is offered or a conference report thereon is 
submitted, that provides new budget authority for the budget 
accounts or portions thereof in the highway and transit 
categories as defined in sections 250(c)(4)(B) and (C) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 in 
excess of the following amounts:
          (1) for fiscal year 2004: $41,569,000,000,
          (2) for fiscal year 2005: $42,657,000,000,
          (3) for fiscal year 2006: $43,635,000,000,
          (4) for fiscal year 2007: $45,709,000,000,
          (5) for fiscal year 2008: $46,945,000,000, or
          (6) for fiscal year 2009: $47,732,000,000,
the chairman of the Committee on the Budget may adjust the 
appropriate budget aggregates and increase the allocation of 
new budget authority to such committee for fiscal year 2004, 
for fiscal year 2005, and for the period of fiscal years 2005 
through 2009 to the extent such excess is offset by a reduction 
in mandatory outlays from the Highway Trust Fund or an increase 
in receipts appropriated to such fund for the applicable fiscal 
year caused by such legislation or any previously enacted 
legislation.
  (b) Adjustment for Outlays.--For fiscal year 2004 or 2005, in 
the House, if a bill or joint resolution is reported, or if an 
amendment thereto is offered or a conference report thereon is 
submitted, that changes obligation limitations such that the 
total limitations are in excess of $40,116,000,000 for fiscal 
year 2004 or $41,204,000,000 for fiscal year 2005 for programs, 
projects, and activities within the highway and transit 
categories as defined in sections 250(c)(4)(B) and (C) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, and 
if legislation has been enacted that satisfies the conditions 
set forth in subsection (a) for such fiscal year, the chairman 
of the Committee on the Budget may increase the allocation of 
outlays and appropriate aggregates for such fiscal year for the 
committee reporting such measure by the amount of outlays that 
corresponds to such excess obligation limitations, but not to 
exceed the amount of such excess that was offset pursuant to 
subsection (a).

                      TITLE IV--BUDGET ENFORCEMENT

SEC. 401. PAY-AS-YOU-GO POINT OF ORDER IN THE HOUSE.

  (a)  Point of Order.--It shall not be in order in the House 
to consider any direct spending or revenue legislation that 
would increase the budget deficit or reduce the budget surplus 
for any of the following periods:
          (1) The first year covered by the most recently 
        adopted concurrent resolution on the budget.
          (2) The period of the first 5 fiscal years covered by 
        the most recently adopted concurrent resolution on the 
        budget.
          (3) The period of the first 10 fiscal years covered 
        in the most recently adopted concurrent resolution on 
        the budget.
  (b) Direct-Spending Legislation.--
          (1) Definition.--For purposes of this section and 
        except as provided in paragraph (2), the term "direct-
        spending legislation" means any bill, joint resolution, 
        amendment, motion, or conference report that affects 
        direct spending as that term is defined by, and 
        interpreted for purposes of, the Balanced Budget and 
        Emergency Deficit Control Act of 1985.
          (2) Exclusion.--For purposes of this section, the 
        terms ``direct-spending legislation'' and ``revenue 
        legislation'' do not include--
                  (A) any concurrent resolution on the budget; 
                or
                  (B) any provision of legislation that affects 
                the full funding of, and continuation of, the 
                deposit insurance guarantee commitment in 
                effect on the date of enactment of the Budget 
                Enforcement Act of 1990.
  (c) Determination of Budget Levels.--For purposes of this 
section, the levels of new budget authority, outlays, and 
revenues for a fiscal year shall be determined on the basis of 
estimates made by the Committee on the Budget of the House.

                      TITLE V--SENSE OF THE HOUSE

SEC. 501. SENSE OF THE HOUSE REGARDING POLICIES AFFECTING JOBLESS 
                    WORKERS AND JOB CREATION.

  (a) Findings.--The House finds that--
          (1) despite the enactment in 2001 and 2003 of 
        significant tax cuts directed toward the Nation's 
        wealthiest individuals, the economy of the United 
        States has lost nearly three million private-sector 
        jobs since President Bush took office in January 2001;
          (2) the 2001 and 2003 tax cuts contributed directly 
        to an increase in current and projected future deficits 
        that has reduced national saving and increased net 
        indebtedness to other countries, and is likely to raise 
        interest rates over time, which will make it more 
        expensive for firms to invest, grow, and create jobs;
          (3) during the past six months, after almost three 
        years of consistent job losses, the economy has created 
        only about 61,000 jobs per month on average, which is 
        not half the rate of job creation required to keep pace 
        with average growth in the working-age population;
          (4) small businesses are the major source of job 
        creation in the United States, accounting for at least 
        two thirds of net new jobs created over the past 
        decade, and the Small Business Administration 7(a) 
        general business guaranteed loan program accounts for 
        40 to 50 percent of all long-term loans to United 
        States small businesses, serving small start-ups and 
        other borrowers who are unable to obtain conventional 
        financing on affordable terms;
          (5) the President's budget for 2005 cuts funding for 
        Small Business Administration business loans and 
        technical assistance programs, and imposes a sharp 
        increase in 7(a) loan fees that will create cost 
        barriers for borrowers seeking to start or expand small 
        businesses and create jobs; and
          (6) the President's budget cuts $151 million from 
        adult training and dislocated worker programs, programs 
        that help laid-off workers adapt to a constantly 
        evolving job market.
  (b) Sense of the House.--It is the sense of the House that--
          (1) this resolution supports funding for an extension 
        through June 2004 of the Temporary Extended 
        Unemployment Compensation program to take account of 
        the continuing minimal rate of job growth in the United 
        States economy; and
          (2) this resolution supports continuation of the 
        current discounted fee structure for Small Business 
        Administration 7(a) general business guaranteed loans; 
        provides $100 million in subsidy budget authority for 
        2005 to support a 7(a) loan volume of at least $10 
        billion at existing guaranty levels; and provides 
        funding to maintain the Small Business Administration's 
        Microloan 2004 loan volume of $21 million; and
          (3) this resolution rejects the President's proposal 
        to cut $151 million in adult training and dislocated 
        worker programs in 2005.

SEC. 502. SENSE OF THE HOUSE REGARDING FUNDING FOR THE MANUFACTURING 
                    EXTENSION PARTNERSHIP.

  (a) Findings.--The House finds that--
          (1) the Manufacturing Extension Partnership, which is 
        jointly funded by Federal and State Governments and 
        private entities, improves small manufacturers' 
        competitiveness, creates jobs, increases economic 
        activity, and generates a $4-to-$1 return on investment 
        to the Treasury by aiding small businesses 
        traditionally underserved by the business consulting 
        market;
          (2) in a January 2004 Department of Commerce report 
        titled Manufacturing In America: A Comprehensive 
        Strategy to Address the Challenges to U.S. 
        Manufacturers, the Administration stated that ``...the 
        Manufacturing Extension Partnership (MEP) has provided 
        many small U.S. manufacturers with useful business 
        services to become more competitive and productive,'' a 
        conclusion in which the Congress concurs;
          (3) the Congress appropriated $106 million for the 
        Manufacturing Extension Partnership for 2003 but only 
        $39 million for 2004, and the President's 2005 budget 
        maintains this drastically reduced funding level, 
        undermining the ability of the Manufacturing Extension 
        Partnership to fulfill its mission of helping small 
        businesses to adopt advanced manufacturing technologies 
        and practices that will help them compete in a global 
        market; and
          (4) Federal funding for the Manufacturing Extension 
        Partnership should be restored to its pre-2004 level, 
        adjusted for inflation.
  (b) Sense of the House.--It is the sense of the House that--
          (1) this resolution provides a total of $110 million 
        for the Manufacturing Extension Partnership for 2005, 
        $71 million more than the President's request, and 
        supports adequate funding throughout the period covered 
        by this resolution; and
          (2) this funding restores the viability of the 
        Manufacturing Extension Partnership and provides the 
        necessary resources for the Manufacturing Extension 
        Partnership to continue helping small manufacturers 
        reach their optimal performance and create jobs.

SEC. 503. SENSE OF THE HOUSE ON EXTENSION OF THE PAY-AS-YOU-GO RULE OF 
                    1997.

  (a) Findings.--The House finds that--
          (1) the ``Pay-As-You-Go'' (``PAYGO'') rule enacted as 
        part of the Budget Enforcement Act of 1990 required 
        that any increase in benefits funded by mandatory 
        spending be fully offset by an equal increase in tax 
        revenues or by a commensurate reduction in existing 
        benefits. The PAYGO rule also required that any tax cut 
        be deficit-neutral, offset by an increase elsewhere in 
        the tax code or by a reduction in benefits funded by 
        mandatory spending;
          (2) the PAYGO rule played a critical role in turning 
        chronic deficits into record surpluses during the 
        1990s;
          (3) the surplus of $5.6 trillion projected for 2002 
        through 2011 is now projected to be a deficit of $2.9 
        trillion;
          (4) the PAYGO rule proved effective in the past and 
        is even more necessary now to rid the budget of 
        colossal deficits;
          (5) the Chairman of the Federal Reserve testified 
        before the Budget Committee and supported renewal of 
        the PAYGO in its original form, applicable to both 
        mandatory spending increases and to tax cuts, and to 
        new tax reduction as well as renewal of expiring tax 
        reduction provisions.
  (b) Sense of the House.--It is the sense of the House that in 
order to reduce the deficit, Congress should extend PAYGO in 
its original form in the Budget Enforcement Act of 1990, making 
the rule apply both to tax decreases and to mandatory spending 
increases.

SEC. 504. SENSE OF THE HOUSE ON DEFENSE PRIORITIES.

  It is the sense of the House that--
          (1) continuing the TRICARE for Reservists is a high 
        priority which should not have been omitted from the 
        President's budget request;
          (2) continuing targeted pay increases for enlisted 
        personnel for three additional years is also a high 
        priority which should not have been omitted from the 
        President's budget request, because it is consistent 
        with the original proposal of the Department of Defense 
        and critical to the retention of experienced military 
        personnel;
          (3) eliminating the Social Security offset to the 
        Military Survivor Benefit Program is also a high 
        priority which should not have been omitted from the 
        President's budget request, and accommodating the 
        discretionary accrual payment that is concomitant to 
        eliminating the offset is consistent with governmental 
        accounting practices;
          (4) funding cooperative threat reduction and nuclear 
        nonproliferation programs at a level adequate to the 
        task and the risks posed to our Nation is also a high 
        priority, and the President's budget does not request 
        sufficient funding;
          (5) providing for homeland security is also a high 
        priority, and the President's request is insufficient, 
        reducing funds for high-risk activities like seaport 
        security and underfunding first responders;
          (6) funding the Missile Defense Agency at the level 
        enacted for 2004 will provide robust support for 
        ballistic missile defense;
          (7) improving financial management at the Department 
        of Defense should help identify billions of dollars of 
        obligations and disbursements which the General 
        Accounting Office has found that the Department of 
        Defense cannot account for, and should result in 
        substantial annual savings;
          (8) improving the award, oversight, and 
        administration of nearly $20 billion in contracts for 
        the reconstruction of Iraq with firms such as 
        Halliburton, and recouping overpayments and penalties, 
        by auditing and investigating such contracts, 
        diligently applying the Truth-in-Negotiations Act, 
        should result in substantial savings; and
          (9) all savings that accrue from the actions 
        recommended in paragraphs (6) through (9) should be 
        used to fund higher priorities within the national 
        security function of the budget, function 050, and 
        especially those high priorities identified in 
        paragraphs (1) through (5).

SEC. 505. SENSE OF THE HOUSE ON ELIMINATING THE SHORTFALL IN THE PELL 
                    GRANT PROGRAM.

  (a) Findings.--The House finds that the Pell Grant program 
has a shortfall of $3.7 billion that threatens the long-term 
stability of the program.
  (b) Sense of the House.--It is the sense of the House that--
          (1) the mandatory levels in this resolution provide 
        the $3.7 billion needed to eliminate the current 
        shortfall in the Pell Grant program;
          (2) eliminating the shortfall in the Pell Grant 
        program restores the program to a sound financial basis 
        and allows Congress to consider an increase in the 
        maximum award.

SEC. 506. SENSE OF THE HOUSE ON HOMELAND SECURITY.

  (a) Findings.--The House finds that additional resources 
beyond those requested in the President's Fiscal Year 2005 
Budget are needed to further strengthen our homeland security.
  (b) Sense of the House.--It is the sense of the House that--
          (1) this resolution provides $1 billion in additional 
        homeland security funding above the President's 
        requested level for 2005, and $1 billion above the 
        President's requested level in each subsequent fiscal 
        year; and
          (2) the homeland security funding provided in this 
        resolution will help to strengthen the security of our 
        Nation's transportation system and other critical 
        infrastructure, including our seaports, secure our 
        borders, increase the preparedness of our public health 
        system, train and equip our first responders, and 
        otherwise strengthen the Nation's homeland security.

SEC. 507. SENSE OF THE HOUSE REGARDING PAY PARITY.

  It is the sense of the House that--
          (1) compensation for civilian and military employees 
        of the United States, without whom we cannot 
        successfully serve and protect our citizens and 
        taxpayers, must be sufficient to support our critical 
        efforts to recruit, retain, and reward quality people 
        effectively and responsibly; and
          (2) to achieve this objective, the rate of increase 
        in the compensation of civilian employees should be 
        equal to that proposed for the military in the 
        President's fiscal year 2005 budget.

SEC. 508. SENSE OF THE HOUSE REGARDING THE CONSERVATION SPENDING 
                    CATEGORY.

  (a) Findings.--The House finds that--
          (1) the 2001 Interior Appropriations Act (Public Law 
        106-291), which established a separate discretionary 
        spending category for land conservation and natural 
        resource protection programs for the fiscal years 2001 
        through 2006, passed by large margins in both the House 
        and the Senate; and
          (2) in establishing a separate conservation spending 
        category, Congress recognized the chronic underfunding 
        of programs that protect and enhance public lands, 
        wildlife habitats, urban parks, historic and cultural 
        landmarks, and coastal ecosystems.
  (b) Sense of the House.--It is the sense of the House that 
any law establishing new caps on discretionary spending should 
include a separate conservation spending category and that any 
caps on conservation spending for fiscal years 2005 or 2006 
should be set at the levels established in Public Law 106-291.

SEC. 509. SENSE OF THE HOUSE REGARDING THE ARCTIC NATIONAL WILDLIFE 
                    REFUGE.

  (a) Findings.--The House finds that--
          (1) President Eisenhower first set aside the original 
        Arctic National Wildlife Refuge in 1960 for the purpose 
        of protecting its wilderness, wildlife, and 
        recreational values; and
          (2) while many refuges in America have been set aside 
        to protect wildlife populations and habitats, the 
        Arctic Refuge is the only refuge in which wilderness 
        was recognized as a purpose for establishment; and
          (3) in order to protect these unrivaled arctic 
        landscapes and wildlife values, Congress significantly 
        expanded the Arctic National Wildlife Refuge in 1980 
        with the passage of the Alaska National Interest Lands 
        Conservation Act (Public Law 96-487), and protected the 
        area against additional oil and gas exploration or 
        development; and
          (4) the biological, cultural, historic, and 
        scientific attributes of the area are so rich and 
        uniquely entwined, and the ecological integrity of the 
        area is so vulnerable to irreparable damage if oil 
        development is initiated, that the wilderness 
        designation is fully warranted.
  (b) Sense of the House.--It is the sense of the House that 
the Arctic National Wildlife Refuge should continue to be 
protected from oil and gas leasing, exploration, and related 
activities.

SEC. 510. SENSE OF THE HOUSE REGARDING THE HETCH HETCHY RESERVOIR IN 
                    YOSEMITE NATIONAL PARK.

  (a) Findings.--The House finds that--
          (1) the City of San Francisco was authorized by the 
        United States Congress, in the Raker Act of 1913, to 
        construct a dam and reservoir on the Tuolumne River in 
        Hetch Hetchy Valley in Yosemite National Park; and
          (2) since its completion in 1923, the City of San 
        Francisco has used water from the Hetch Hetchy 
        Reservoir for its water supply and electrical power 
        generation; and
          (3) the City of San Francisco currently provides 
        between $2 million and $3 million annually to Yosemite 
        National Park for use of the Hetch Hetchy Reservoir; 
        and
          (4) any additional rental payments for the use of the 
        Hetch Hetchy Reservoir would in all likelihood burden 
        2.4 million customers in the City and County of San 
        Francisco and the Counties of Santa Clara, San Mateo, 
        and Alameda who rely on its use by raising the cost of 
        drinking water.
  (b) Sense of the House.--It is the sense of the House that 
the Federal Government has long followed a policy of exempting 
municipalities from annual licensing fees for power used for 
municipal purposes or sold without profit and that this long-
standing policy should apply to the Hetch Hetchy Reservoir.

SEC. 511. SENSE OF THE HOUSE REGARDING THE OUACHITA-BLACK NAVIGATION 
                    PROJECT.

  (a) Findings.--The House finds that--
          (1) the Ouachita-Black Navigation Project was 
        authorized by the River and Harbor Act of 1950 and 
        modified by the River and Harbor Act of 1960; and
          (2) a 382-mile navigation channel on the Red, Black 
        and Ouachita Rivers was created requiring annual 
        dredging to ensure the rivers' channel depth is 
        maintained at the nine feet needed for commercial use; 
        and
          (3) if adequate annual funding is not provided to the 
        Corps of Engineers and others, the project will not be 
        able to function, undercutting commerce and 
        revitalization in the area served by the project, and 
        resulting in the loss of hundreds of jobs that are 
        dependent on barge traffic.
  (b) Sense of the House.--It is the sense of the House that 
full funding should be provided for the Ouachita-Black 
Navigation Project in 2005 and beyond, notwithstanding the ton-
mileage of barge traffic using the project.

SEC. 512. SENSE OF THE HOUSE REGARDING THE NATIONAL RAILROAD PASSENGER 
                    CORPORATION.

  (a) Findings.--The House finds that--
          (1) Amtrak, the National Railroad Passenger 
        Corporation, operates over 22,000 miles, serves over 
        500 communities, and is responsible for transporting 
        more than 1.4 million commuter passengers daily; and
          (2) Amtrak ridership reached a record high in 2003, 
        surpassing the 24 million mark for the first time; and
          (3) Amtrak continues to implement business reforms 
        that have improved fiscal controls, more efficiently 
        used resources, and stabilized operations; and
          (4) Amtrak has also embarked on a major capital 
        improvement program, outlined in a Five-Year Strategic 
        Plan, that is designed to return the system to a state 
        of good repair so that passengers may continue to 
        depend on safe and reliable service; and
          (5) in fiscal year 2005, Amtrak must begin to address 
        its current backlog of necessary capital improvements 
        to avoid significant impairment in operations and 
        reliability.
  (b) Sense of the House.--It is the sense of the House that 
the Federal Government should provide additional resources 
sufficient to allow Amtrak to implement the improvements 
outlined in its Five-Year Strategic Plan and proceed with 
internal reforms.

SEC. 513. SENSE OF THE HOUSE ON TAX SIMPLIFICATION AND TAX FAIRNESS.

  It is the sense of the House that--
          (1) the current tax system has been made increasingly 
        complex and unfair to the detriment of the vast 
        majority of working Americans;
          (2) constant change and manipulation of the tax code 
        have adverse effects on taxpayers' understanding and 
        trust in the Nation's tax laws;
          (3) these increases in complexity and clarity have 
        made compliance more challenging for the average 
        taxpayer and small business owner, especially the self-
        employed; and
          (4) this budget resolution contemplates a 
        comprehensive review of recent changes in the tax code, 
        leading to future action to reduce the tax burden and 
        compliance burden for middle-income workers and their 
        families in the context of tax reform that makes the 
        Federal tax code simpler and fairer to all taxpayers.

SEC. 514. SENSE OF THE HOUSE ON ACCELERATING INCREASED REFUNDABILITY OF 
                    THE CHILD TAX CREDIT FOR LOW-INCOME FAMILIES.

  (a) Findings.--The House finds that--
          (1) work is essential to promoting self-sufficient 
        families which help children set goals in life and 
        achieve them;
          (2) workers of low and modest incomes have seen their 
        ability to provide for their children eroded since 
        2001;
          (3) members of the armed services serving in combat 
        should have all the means necessary for providing for 
        their children; and
          (4) 12 million children of American workers (at least 
        200,000 in military families) will not benefit from the 
        expanded child tax credit in 2004.
  (b) Sense of the House.--It is the sense of the House that 
the increase in the refundability of the child tax credit from 
ten to fifteen percent of income between $10,500 and $26,625 
should be accelerated by one year and should take effect in 
2004; furthermore, other provisions in the tax code 
notwithstanding, combat pay for members of the Armed Services 
should be counted as earned income for the purposes of 
calculating refundability of the child tax credit.

SEC. 515. SENSE OF THE HOUSE REGARDING A TRIGGER MECHANISM FOR 
                    PRESCRIPTION DRUG PRICE NEGOTIATION.

  (a) Findings.--The House finds the following:
          (1) The cost of the new Medicare law, estimated by 
        the Congressional Budget Office before its passage to 
        be $395,000,000,000 over ten years, has now been 
        estimated by the Department of Health and Human 
        Services to be $534,000,000,000 over ten years. Rising 
        drug prices can increase the cost of the drug benefit 
        and could end up shifting additional cost burdens to 
        Medicare beneficiaries.
          (2) Prescription drug spending increased 15.6 percent 
        in 2002. These rising costs are one of the primary 
        drivers of increasing health care spending, which grew 
        9.3 percent in 2002.
          (3) The Veterans' Administration as well as every 
        private insurer depends on bulk negotiation to keep 
        drug prices down.
          (4) According to a study by the Inspector General of 
        the Department of Health and Human Services, Medicare 
        payments for 24 leading drugs in 2000 were $887,000,000 
        higher than actual wholesale prices available to 
        physicians and suppliers and $1,900,000,000 higher than 
        prices available through the Federal supply schedule 
        used by the Department of Veterans Affairs and other 
        Federal purchasers.
          (5) The private prescription drug plans provided for 
        in the Medicare law do not exist in the marketplace. 
        Therefore, it is impossible to predict whether these 
        private plans will in fact be able to acquire 
        substantial discounts through negotiation. In addition, 
        private plans cannot take advantage of the full 
        purchasing power of 40,000,000 beneficiaries.
  (b) Sense of the House.--It is the sense of the House that--
          (1) legislation should be adopted which would 
        establish a trigger mechanism for negotiation of 
        prescription drug prices by the Secretary of Health and 
        Human Services; and
          (2) this legislation would mandate that at any point 
        when the expected ten-year expenditures for fiscal 
        years 2004 through 2013 for Public Law 108-173 exceed 
        the Congressional Budget Office estimate for this 
        legislation, the Secretary of Health and Human Services 
        would be required to immediately enter into direct 
        negotiations with pharmaceutical manufacturers for 
        competitive drug prices.

                                
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