[House Report 109-468]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-468

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



 
PROVIDING FOR FURTHER CONSIDERATION OF H. CON. RES. 376, THE CONCURRENT 
             RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2007

                                _______
                                

May 17, 2006.--Referred to the House Calendar and ordered to be printed

                                _______
                                

    Mr. Putnam, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 817]

    The Committee on Rules, having had under consideration 
House Resolution 817, 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 H. 
Con. Res. 376, the Concurrent Resolution on the Budget for 
Fiscal Year 2007, under a structured rule.
    The rule provides that the amendments printed in part A of 
this report shall be considered as adopted, The rule provides 
that the concurrent resolution, as amended, shall be considered 
as read. The rule makes in order only those further amendments 
printed in part B of 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 40 minutes 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 part B of 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 that upon the conclusion of consideration 
of the concurrent resolution for amendment there shall be a 
final period of general debate, not to exceed 20 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 Committee on the Budget to offer 
amendments in the House to achieve mathematical consistency. 
The rule provides that the concurrent resolution shall not be 
subject to a demand for division of the question of its 
adoption.
    The rule provides that after adoption of H. Con. Res. 376, 
it shall be in order to consider in the House, S. Con. Res. 83, 
to move to strike all after the resolving clause of S. Con. 
Res. 83, and to insert the provisions of H. Con. Res. 376 as 
adopted by the House. The rule waives all points of order 
against consideration of S. Con. Res. 83 and against the motion 
to strike and insert. Finally, the rule provides that if the 
motion is adopted and the Senate concurrent resolution, as 
amended, is adopted, then it shall be in order to move that the 
House insist on its amendment to the Senate concurrent 
resolution and request a conference with the Senate thereon.

                         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. 204

    Date: May 17, 2006.
    Measure: H. Con. Res. 376, the Concurrent Resolution on the 
Budget for Fiscal Year 2007.
    Motion by: Mr. Lincoln Diaz-Balart.
    Summary of motion: To report the resolution.
    Results: Agreed to 6 to 4.
    Vote by Members: Diaz-Balart--Yea; Sessions--Yea; Putman--
Yea; Bishop--Yea; Gingrey--Yea; Slaughter--Nay; McGovern--Nay; 
Hastings (FL)--Nay; Matsui--Nay; Dreier--Yea.

       PART A--SUMMARY OF AMENDMENTS TO BE CONSIDERED AS ADOPTED

    Nussle: Manager's Amendment. Amount of Emergency Reserve 
Fund. The amendment provides for a discretionary emergency 
reserve of $6.45 billion for natural disasters, taking into 
account enactment of the pending supplemental. This amount is 
based on a realistic average of emergency designated spending 
in prior years (excluding highs and lows). The amount is an 
increase from the $4.3 billion estimate in the committee 
reported resolution, which was based on 10 accounts most 
commonly associated with emergency spending (e.g. wildland 
firefighting, FEMA disaster relief, SBA disaster loans, ACOE 
Flood Control). The adjustment accommodates additional 
emergency effects in other accounts--such as international 
relief efforts, Federal Highway Administration emergency 
relief, and refugee assistance. The Appropriations Committee 
will continue to designate spending for nondefense emergencies, 
up to the amount in the reserve fund, for spending identified 
as unanticipated in the regular budget cycle, and in response 
to an immediate threat to life or property. Emergency 
appropriations above the reserve would be subject to a Budget 
Committee vote to raise the applicable limits. As in prior 
years, the policy defines a nondefense emergency (essentially 
an unanticipated event posing an immediate threat to life or 
property). The procedures for increasing the budget to 
accommodate spending in excess of the reserve are the same as 
in the committee-reported budget resolution, and do not contain 
any new points of order. Authorizing committees will continue 
to operate under essentially similar procedures, receiving 
adjustments for emergencies.
    Reserve Fund for Domestic Priorities. The amendment 
provides a deficit-neutral reserve fund of $3.1 billion for 
Labor-HHS, education, and other domestic priorities, should 
savings be achieved elsewhere.
    Avian Flu. There will be no separate reserve in fiscal year 
2007 for avian flu, because the funding will be provided in 
fiscal year 2006.
    Reconciliation Deadline. The deadline for submission of 
reconciliation legislation is rescheduled to 9 June 2006.
    Budget Levels. The amendment also adjusts certain budget 
levels to be consistent with the changes above.
    Castle: Reiterates that the budget resolution sets total 
discretionary spending at $872.778 billion and that additional 
funding for Labor HHS Education Appropriations can be offset 
with mandatory or discretionary savings. It also recognizes the 
need to increase the President's FY 2007 Labor HHS Education 
Appropriation request by not less than $7.158 billion.
    Weldon(PA)/Gerlach/Platts/LoBiondo/Castle/Leach/Johnson 
(CT)/Kelly/Smith (NJ)/Dent: States that any offsets to provide 
for the increases relative to the President's FY 2007 Labor HHS 
Education Appropriation request should include a rescission of 
at least $1 billion from available, unobligated funds 
previously appropriated for reconstruction activities in Iraq.

         PART A--TEXT OF AMENDMENTS TO BE CONSIDERED AS ADOPTED


     Part A--Text of Amendment Offered by Mr. Nussle of Iowa To Be 
                         Considered as Adopted

  Paragraphs (2) through (6) of section 101 are amended to read 
as follows:

          (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 2007: $2,283,029,000,000.
                  Fiscal year 2008: $2,332,599,000,000.
                  Fiscal year 2009: $2,426,014,000,000.
                  Fiscal year 2010: $2,526,861,000,000.
                  Fiscal year 2011: $2,649,474,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2007: $2,325,998,000,000.
                  Fiscal year 2008: $2,364,794,000,000.
                  Fiscal year 2009: $2,434,610,000,000.
                  Fiscal year 2010: $2,524,168,000,000.
                  Fiscal year 2011: $2,640,119,000,000.

          (4) Deficits (on-budget).--For purposes of the 
        enforcement of this resolution, the amounts of the 
        deficits (on-budget) are as follows:
                  Fiscal year 2007: $545,332,000,000.
                  Fiscal year 2008: $451,196,000,000.
                  Fiscal year 2009: $423,423,000,000.
                  Fiscal year 2010: $401,973,000,000.
                  Fiscal year 2011: $427,856,000,000.
          (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 2007: $9,182,000,000,000.
                  Fiscal year 2008: $9,744,000,000,000.
                  Fiscal year 2009: $10,275,000,000,000.
                  Fiscal year 2010: $10,781,000,000,000.
                  Fiscal year 2011: $11,307,000,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2007: $5,328,000,000,000.
                  Fiscal year 2008: $5,577,000,000,000.
                  Fiscal year 2009: $5,781,000,000,000.
                  Fiscal year 2010: $5,946,000,000,000.
                  Fiscal year 2011: $6,120,000,000,000.

  Amend paragraph (11) of section 102 to read as follows:

          (11) Health (550):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $273,450,000,000.
                          (B) Outlays, $274,616,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $289,867,000,000.
                          (B) Outlays, $291,070,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $310,193,000,000.
                          (B) Outlays, $308,529,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $326,949,000,000.
                          (B) Outlays, $326,511,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $348,509,000,000.
                          (B) Outlays, $346,802,000,000.

  Amend paragraph (18) of section 102 to read as follows:

          (18) Net Interest (900):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $354,138,000,000.
                          (B) Outlays, $354,138,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $383,621,000,000.
                          (B) Outlays, $383,621,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $405,846,000,000.
                          (B) Outlays, $405,846,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $427,510,000,000.
                          (B) Outlays, $427,510,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $449,248,000,000.
                          (B) Outlays, $449,248,000,000.

  Amend paragraph (19) of section 102 to read as follows:

          (19) Allowances (920):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $6,247,000,000.
                          (B) Outlays, $5,280,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$7,922,000,000.
                          (B) Outlays, -$5,437,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$7,252,000,000.
                          (B) Outlays, -$5,918,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$7,384,000,000.
                          (B) Outlays, -$6,882,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$7,539,000,000.
                          (B) Outlays, -$7,282,000,000.

  Amend section 201(a)(1) by striking ``May 12,'' and insert 
``June 9,''.

  At the end of title III, add the following new section:

SEC. 306. RESERVE FUND TO ACCOMMODATE FULLY OFFSET APPROPRIATIONS FOR 
                    LABOR/HHS, EDUCATION, AND OTHER DOMESTIC 
                    PRIORITIES.

  In the House, if any measure is enacted that reduces direct 
spending for fiscal year 2007 and for the period of fiscal 
years 2007 through 2011, and so designates some or all of such 
savings provisions pursuant to this section, then the chairman 
of the Committee on Budget shall increase the allocation of new 
budget authority (and outlays flowing therefrom) to the 
Committee on Appropriations for fiscal year 2007 by an amount 
not to exceed the reduction in budget authority for that fiscal 
year achieved by such designated provisions. Adjustments made 
pursuant to this section may not be--
          (1) greater than the savings achieved by the measure 
        in which such designated provisions are included; or
          (2) in excess of $3,100,000,000 for fiscal year 2007.
Such chairman may make any other appropriate adjustments to 
applicable aggregates and allocations under this section.

  Amend the section heading of section 402 to read as follows: 
``CONTINGENCY OPERATIONS RELATED TO THE GLOBAL WAR ON TERRORISM 
AND FOR UNANTICIPATED DEFENSE NEEDS''.

  Amend the side heading of section 402(a) to read as follows: 
``Exemption of Contingency Operations Related to the Global War 
on Terrorism and for Unanticipated Defense Needs.--''.

  Strike section 403.
  Amend section 501 to read as follows:

SEC. 501. NONDEFENSE RESERVE FUND FOR EMERGENCIES.

  (a) Nondefense Reserve Funds.--
          (1) Discretionary reserve fund.--In the House and 
        except as provided by subsection (b), if a bill or 
        joint resolution is reported, or an amendment is 
        offered thereto (or considered as adopted) or a 
        conference report is filed thereon, that provides new 
        discretionary budget authority (and outlays flowing 
        therefrom), and such provision is designated as an 
        emergency pursuant to this section, the chairman of the 
        Committee on the Budget shall make adjustments to the 
        allocations and aggregates set forth in this resolution 
        up to the amount of such provisions if the requirements 
        set forth in section 504 are met, but the sum of all 
        adjustments made under this paragraph shall not exceed 
        $6,450,000,000 for fiscal year 2007.
          (2) Other adjustments.--In the House, if a bill or 
        joint resolution is reported or a conference report is 
        filed thereon, and a direct spending or receipt 
        provision included therein is designated as an 
        emergency pursuant to this paragraph, the chairman of 
        the Committee on the Budget may make adjustments to the 
        allocations and aggregates set forth in this 
        resolution.
  (b) Additional Adjustment Procedures.--In the House, before 
any adjustment is made pursuant to this section for any bill, 
joint resolution, or conference report that designates a 
provision an emergency, the enactment of which would cause the 
total amount of the reserve fund set forth in subsection (a)(1) 
for fiscal year 2007 to be exceeded:
          (1) The chairman of the Committee on the Budget shall 
        convene a meeting of that committee, where it shall be 
        in order, subject to the terms set forth in this 
        section, for one motion described in paragraph (2) to 
        be made to authorize the chairman to make adjustments 
        above the maximum amount of adjustments set forth in 
        subsection (a).
          (2) The motion referred to in paragraph (1) shall be 
        in the following form: ``I move that the chairman of 
        the Committee on the Budget be authorized to adjust the 
        allocations and aggregates set forth in the concurrent 
        resolution on the budget for fiscal year 2007 by the 
        following amount: $___ for fiscal year 2007.'', with 
        the blank being filled in with amount determined by the 
        chairman of the Committee on the Budget. For any 
        measure referred to in subsection (a)(1), such amount 
        shall not exceed the total amount for fiscal year 2007 
        designated as an emergency in excess of the applicable 
        amount remaining in the reserve fund.
          (3) The motion set forth in paragraph (2) shall be 
        open for debate and amendment, but any amendment 
        offered thereto is only in order if limited to changing 
        an amount in the motion.
          (4) Except as provided by paragraph (5), the chairman 
        of the Committee on the Budget may not make any 
        adjustments under subsection (a) or subsection (b) 
        unless or until the committee filing a report or joint 
        statement of managers on a conference report on a 
        measure including an emergency designation fulfills the 
        terms set forth in section 504.
          (5) The chairman of the Committee on the Budget shall 
        make any adjustments he deems necessary under this 
        section if he determines the enactment of the provision 
        or provisions designated as an emergency is essential 
        to respond to an urgent and imminent need, the chairman 
        determines the exceptional circumstances referred to in 
        rule 3 of the rules of the committee are met and the 
        committee cannot convene to consider the motion 
        referred to in this section in a timely fashion.
  (c) Application of Adjustments.--The adjustments made 
pursuant to subsection (a) or (b) shall--
          (1) apply while that bill, joint resolution, 
        conference report or amendment is under consideration;
          (2) take effect upon the enactment of that 
        legislation; and
          (3) be published in the Congressional Record as soon 
        as practicable.
                              ----------                              

           *       *       *       *       *       *       *



   Part A--Text of Amendment Offered by Mr. Castle of Delaware To Be 
                         Considered as Adopted

  At the end of title VI, add the following new section:

SEC.    . IMPORTANCE OF FUNDING FY2007 DEPARTMENTS OF LABOR, HEALTH AND 
                    HUMAN SERVICES, EDUCATION, AND RELATED AGENCIES 
                    APPROPRIATION BILL.

  (a) Findings.--The House of Representatives finds that--
          (1) the budget resolution sets total discretionary 
        spending at $872,778,000,000; and
          (2) additional funding can be provided for 
        discretionary programs under the budget resolution 
        provided that it is offset with mandatory or 
        discretionary savings in negotiations with the Senate.
  (b) Recognition.--The House of Representatives recognizes the 
need to increase the President's fiscal year 2007 request for 
the Departments of Labor, Health and Human Services, Education, 
and Related Agencies Appropriation bill by not less than 
$7,158,000,000.
                              ----------                              


 Part A--Text of Amendment Offered by Mr. Weldon of Pennsylvania To Be 
                         Considered as Adopted

    At the end of title VI, add the following new section:

SEC. __ UNOBLIGATED FUNDING OFFSET.

    There should be included in any offsets enacted to provide 
for the increases relative to the President's request for the 
Labor, Health and Human Services, Education, and Related 
Agencies Appropriations bill a rescission of at least 
$1,000,000,000 from available, unobligated funds previously 
appropriated for reconstruction activities in Iraq.
                              ----------                              


PART B--SUMMARY OF AMENDMENTS IN THE NATURE OF A SUBSTITUTE TO BE MADE 
                                IN ORDER

    (Summaries derived from information provided by the 
amendment sponsor.)
    1. Watt (NC)/ Scott (VA): Balances the budget in FY 2011, 
and assumes a savings of almost $25 billion on interest on the 
national debt. Funds essential social services--especially 
education, health care and reconstruction of the Gulf Coast--
and national security needs--particularly providing support for 
the troops in Iraq, increasing the Army's active duty 
personnel, maintaining current National Guard Strength and 
funding Navy Shipbuilding, as well as funding port security and 
Veterans programs and benefits. Establishes a Pay-As-You-Go 
point of order in the House against consideration of any direct 
spending or revenue legislation that would increase the on-
budget deficit or cause an on-budget deficit for the budget 
year or the period of the budget year and the next four fiscal 
years. (40 minutes)
    2. Hensarling: Balances the federal budget by FY 2011, 
without increasing taxes. Extends the President's 2001 and 2003 
tax cuts and provide AMT relief. Eliminates roughly 150 federal 
programs, realizes a $392 billion net deficit reduction over 
five years, while increasing defense and veterans' spending and 
making no changes to Social Security. Calls for $358 billion in 
reconciliation savings over five years, achieved in part by 
block granting Medicaid, SCHIP, and most federal education and 
job training programs, and capping the growth of Medicare at 
5.4% annually. Significantly restructures the Departments of 
Commerce, Energy, and Education, reduces foreign aid by $31 
billion over five years, allows drilling in ANWR, repeals 
Davis-Bacon, and eliminates highway (SAFTEA-LU) earmarks. 
Repeals the Gephardt rule, includes reforms to emergency 
spending, and creates Budget Protection Accounts to divert 
spending to deficit reduction and further tax relief. (40 
minutes)
    3. Spratt: Establishes a 10 year budget through fiscal year 
2016. Balances the budget by 2012. Contains smaller deficits 
than the House Republican budget for 2007 and over five years. 
Accumulates less debt over five years than House Republican 
budget. Rejects cuts to important domestic priorities, such as 
education, health, veterans, and the environment. Provides more 
funding than the Republican budget for homeland security 
functions, including port security. Contains no reconciliation 
instructions. Provides middle-class tax relief. Provides for 
budget enforcement rules to restore fiscal discipline. (40 
minutes)
                              ----------                              


PART B--TEXT OF AMENDMENTS IN THE NATURE OF A SUBSTITUTE TO BE MADE IN 
                                 ORDER


      1. An Amendment in the Nature of a Substitute if Offered by 
 Representative Watt of North Carolina, 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 2007.

  The Congress declares that this is the concurrent resolution 
on the budget for fiscal year 2007, including appropriate 
budgetary levels for fiscal years 2008 through 2011.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS


SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2007 through 2011:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2007: 
                        $1,877,299,000,000.00.
                          Fiscal year 2008: 
                        $1,974,876,000,000.00.
                          Fiscal year 2009: 
                        $2,087,771,000,000.00.
                          Fiscal year 2010: 
                        $2,196,377,000,000.00.
                          Fiscal year 2011: 
                        $2,420,471,000,000.00.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                          Fiscal year 2007: $57,700,000,000.00.
                          Fiscal year 2008: $53,100,000,000.00.
                          Fiscal year 2009: $56,200,000,000.00.
                          Fiscal year 2010: $60,400,000,000.00.
                          Fiscal year 2011: $63,400,000,000.00.
          (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 2007: $2,339,794,000,000.00.
                  Fiscal year 2008: $2,377,266,000,000.00.
                  Fiscal year 2009: $2,470,110,000,000.00.
                  Fiscal year 2010: $2,570,061,000,000.00
                  Fiscal year 2011: $2,691,732,000,000.00
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2007: $2,349,169,000,000.00
                  Fiscal year 2008: $2,412,607,000,000.00
                  Fiscal year 2009: $2,477,159,000,000.00
                  Fiscal year 2010: $2,566,991,000,000.00
                  Fiscal year 2011: $2,682,198,000,000.00
          (4) Deficits (on-budget).--For purposes of the 
        enforcement of this resolution, the amounts of the 
        deficits (on-budget) are as follows:
                  Fiscal year 2007: $-471,870,000,000.00
                  Fiscal year 2008: $-437,732,000,000.00
                  Fiscal year 2009: $-389,388,000,000.00
                  Fiscal year 2010: $-370,614,000,000.00
                  Fiscal year 2011: $-261,727,000,000.00
          (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 2007: $9,098,905,000,000.00
                  Fiscal year 2008: $9,648,135,000,000.00
                  Fiscal year 2009: $10,145,324,000,000.00
                  Fiscal year 2010: $10,620,812,000,000.00
                  Fiscal year 2011: $10,980,497,000,000.00
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2007: $5,245,092,000,000.00
                  Fiscal year 2008: $5,480,886,000,000.00
                  Fiscal year 2009: $5,651,568,000,000.00
                  Fiscal year 2010: $5,785,485,000,000.00
                  Fiscal year 2011: $5,794,228,000,000.00

SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2007 through 2011 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $506,347,000,000.00
                          (B) Outlays, $530,252,000,000.00
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $484,661,000,000.00
                          (B) Outlays, $504,174,000,000.00
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $504,753,000,000.00
                          (B) Outlays, $505,506,000,000.00
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $514,858,000,000.00
                          (B) Outlays, $512,438,000,000.00
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $525,781,000,000.00
                          (B) Outlays, $524,790,000,000.00
          (2) International Affairs (150):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $33,516,000,000.00
                          (B) Outlays, $35,543,000,000.00
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $36,206,000,000.00
                          (B) Outlays, $35,046,000,000.00
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $36,178,000,000.00
                          (B) Outlays, $35,080,000,000.00
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $35,869,000,000.00
                          (B) Outlays, $34,991,000,000.00
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $36,293,000,000.00
                          (B) Outlays, $34,735,000,000.00
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $26,438,000,000.00
                          (B) Outlays, $25,369,000,000.00
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $27,646,000,000.00
                          (B) Outlays, $26,526,000,000.00
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $28,693,000,000.00
                          (B) Outlays, $27,612,000,000.00
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $29,910,000,000.00
                          (B) Outlays, $28,753,000,000.00
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $31,189,000,000.00
                          (B) Outlays, $29,974,000,000.00
          (4) Energy (270):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $2,693,000,000.00
                          (B) Outlays, $1,098,000,000.00
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $3,088,000,000.00
                          (B) Outlays, $1,038,000,000.00
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $2,717,000,000.00
                          (B) Outlays, $1,306,000,000.00
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $2,590,000,000.00
                          (B) Outlays, $1,268,000,000.00
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $2,494,000,000.00
                          (B) Outlays, $1,111,000,000.00
          (5) Natural Resources and Environment (300):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $30,674,000,000.00
                          (B) Outlays, $33,707,000,000.00
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $29,833,000,000.00
                          (B) Outlays, $31,608,000,000.00
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $30,238,000,000.00
                          (B) Outlays, $31,236,000,000.00
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $29,687,000,000.00
                          (B) Outlays, $30,702,000,000.00
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $29,595,000,000.00
                          (B) Outlays, $30,304,000,000.00
          (6) Agriculture (350):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $30.029,000,000.00
                          (B) Outlays, $28,804,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $27,705,000,000.00.
                          (B) Outlays, $27,086,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $27,012,000,000.00.
                          (B) Outlays, $26,330,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $25,870,000,000.00.
                          (B) Outlays, $25,060,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $25,511,000,000.00.
                          (B) Outlays, $24,781,000,000.00.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $18,018,000,000.00.
                          (B) Outlays, $9,277,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $14,678,000,000.00.
                          (B) Outlays, $9,414,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $14,778,000,000.00.
                          (B) Outlays, $9,458,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $18,562,000,000.00.
                          (B) Outlays, $10,357,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $13,366,000,000.00.
                          (B) Outlays, $6,890,000,000.00.
          (8) Transportation (400):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $79,258,000,000.00.
                          (B) Outlays, $76,187,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $82,283,000,000.00.
                          (B) Outlays, $79,140,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $73,878,000,000.00.
                          (B) Outlays, $78,976,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $73,926,000,000.00.
                          (B) Outlays, $78,515,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $74,477,000,000.00.
                          (B) Outlays, $78,546,000,000.00.
          (9) Community and Regional Development (450):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $17,942,000,000.00.
                          (B) Outlays, $31,792,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $14,917,000,000.00.
                          (B) Outlays, $26,500,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $14,981,000,000.00.
                          (B) Outlays, $23,201,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $14,988,000,000.00.
                          (B) Outlays, $19,656,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $15,218,000,000.00.
                          (B) Outlays, $15,602,000,000.00.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $116,924,000,000.00.
                          (B) Outlays, $98,336,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $99,140,000,000.00.
                          (B) Outlays, $109,332,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $98,989,000,000.00.
                          (B) Outlays, $98,848,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $98,393,000,000.00.
                          (B) Outlays, $97,923,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $98,343,000,000.00.
                          (B) Outlays, $97,597,000,000.00.
          (11) Health (550):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $281,193,000,000.00.
                          (B) Outlays, $276,397,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $94,867,000,000.00.
                          (B) Outlays, $295,323,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $315,193,000,000.00.
                          (B) Outlays, $313,315,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $331,949,000,000.00.
                          (B) Outlays, $331,605,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $353,509,000,000.00.
                          (B) Outlays, $352,084,000,000.00.
          (12) Medicare (570):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $383,503,000,000.00.
                          (B) Outlays, $388,845,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $414,050,000,000.00.
                          (B) Outlays, $414,094,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $444,031,000,000.00.
                          (B) Outlays, $443,720,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $473,662,000,000.00.
                          (B) Outlays, $473,938,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $523,967,000,000.00.
                          (B) Outlays, $524,005,000,000.00.
          (13) Income Security (600):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $360,761,000,000.00.
                          (B) Outlays, $364,795,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $376,174,000,000.00.
                          (B) Outlays, $378,529,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $386,732,000,000.00.
                          (B) Outlays, $389,048,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $396,682,000,000.00.
                          (B) Outlays, $398,178,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $411,687,000,000.00.
                          (B) Outlays, $411,960,000,000.00.
          (14) Social Security (650):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $17,000,000,000.00.
                          (B) Outlays, $16,990,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $18,604,000,000.00.
                          (B) Outlays, $18,636,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $20,312,000,000.00.
                          (B) Outlays, $20,351,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $22,268,000,000.00.
                          (B) Outlays, $22,305,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $25,782,000,000.00.
                          (B) Outlays, $25,806,000,000.00.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $79,181,000,000.00.
                          (B) Outlays, $77,849,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $81,425,000,000.00.
                          (B) Outlays, $81,596,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $82,314,000,000.00.
                          (B) Outlays, $82,420,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $82,732,000,000.00.
                          (B) Outlays, $82,741,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $86,898,000,000.00.
                          (B) Outlays, $86,749,000,000.00.
          (16) Administration of Justice (750):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $45,953,000,000.00.
                          (B) Outlays, $46,180,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $45,908,000,000.00.
                          (B) Outlays, $46,369,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $46,454,000,000.00.
                          (B) Outlays, $46,692,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $46,816,000,000.00.
                          (B) Outlays, $46,874,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $47,862,000,000.00.
                          (B) Outlays, $47,494,000,000.00.
          (17) General Government (800):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $19,481,000,000.00.
                          (B) Outlays, $19,285,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $18,832,000,000.00.
                          (B) Outlays, $18,792,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $18,865,000,000.00.
                          (B) Outlays, $18,586,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $18,750,000,000.00.
                          (B) Outlays, $18,507,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $18,979,000,000.00.
                          (B) Outlays, $18,707,000,000.00.
          (18) Net Interest (900):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $353,323,000,000.00.
                          (B) Outlays, $353,323,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $381,898,000,000.00.
                          (B) Outlays, $381,898,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $403,724,000,000.00.
                          (B) Outlays, $403,724,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $424,708,000,000.00.
                          (B) Outlays, $424,708,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $445,604,000,000.00.
                          (B) Outlays, $445,604,000,000.00.
          (19) Allowances (920):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $6,145,000,000.00.
                          (B) Outlays, $4,568,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $-5,922,000,000.00.
                          (B) Outlays, $-4,096,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $-5,252,000,000.00.
                          (B) Outlays, $-4,051,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $-5,384,000,000.00.
                          (B) Outlays, $-4,939,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $-5,539,000,000.00.
                          (B) Outlays, $-5,293,000,000.00.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $-68,585,000,000.00.
                          (B) Outlays, $-69,427,000,000.00.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $-68,727,000,000.00.
                          (B) Outlays, $-68,399,000,000.00.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $-74,480,000,000.00.
                          (B) Outlays, $-74,199,000,000.00.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $-66,775,000,000.00.
                          (B) Outlays, $-69,588,000,000.00.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $-69,284,000,000.00
                          (B) Outlays, $-69,247,000,000.00

                   TITLE II--MISCELLANEOUS PROVISIONS


SEC. 201. 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 on-budget deficit or cause an on-budget deficit 
for any of the following periods:
          (1) The budget year.
          (2) The period of the budget year and the next 4 
        fiscal years.
  (b) On-Budget Deficit.--
          (1) Definition.--For purposes of this section, the 
        term ``on-budget deficit'' means a budget deficit that 
        occurs in any year in which total outlays exceed total 
        revenues, counting Federal revenues and outlays, except 
        those of the old age, survivors and disability 
        insurance trust funds established under title II of the 
        Social Security Act, as provided in section 13301 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.
  (d) Expiration.--This section shall expire on December 31, 
2016.

SEC. 202. DEPARTMENT OF DEFENSE REPORT TO CONGRESS.

  (a) Findings.--The Congress finds that--
          (1) $290,600,000 has been specifically reallocated to 
        the Department of Defense in order to implement the 
        recommendations of the Government Accountability Office 
        (GAO) for improvement that will produce tremendous cost 
        savings within the Department;
          (2) between 2001 and 2005, GAO provided the 
        Department of Defense with 2153 recommendations, many 
        related to improving their business practices and, to 
        date, the Department of Defense has implemented 604 
        recommendations and closed 96 recommendations without 
        implementation; and
          (3) the GAO estimates that the 604 implemented 
        recommendations have yielded the Department of Defense 
        a savings of $40.8 billion between fiscal years 2001 
        and 2005.
  (b) Assumption; Report.--
          (1) Assumption.--This resolution assumes $290,600,000 
        to be used by the Department of Defense to implement 
        the remaining 1,453 recommendations of the Government 
        Accountability Office.
          (2) Report.--The Secretary of Defense shall submit a 
        report to Congress within 90 days that demonstrates how 
        each such recommendation shall be implemented, and, in 
        the case of any such recommendation that cannot be 
        implemented, a detailed reason for such inability to 
        implement such recommendation.
                              ----------                              


      2. An Amendment in the Nature of a Substitute if Offered by 
 Representative Hensarling of Texas, 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 2007.

  The Congress declares that the concurrent resolution on the 
budget for fiscal year 2007 is hereby established and that the 
appropriate budgetary levels for fiscal years 2008 through 2011 
are set forth.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS


SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2007 through 2011:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2007: $1,758,926,000,000.
                          Fiscal year 2008: $1,845,251,000,000.
                          Fiscal year 2009: $1,927,713,000,000.
                          Fiscal year 2010: $2,016,539,000,000.
                          Fiscal year 2011: $2,084,848,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                          Fiscal year 2007: $60,447,000,000.
                          Fiscal year 2008: $76,088,000,000.
                          Fiscal year 2009: $103,277,000,000.
                          Fiscal year 2010: $118,773,000,000.
                          Fiscal year 2011: $271,582,000,000.
          (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 2007: $2,197,306,000,000.
                          Fiscal year 2008: $2,208,964,000,000.
                          Fiscal year 2009: $2,247,453,000,000.
                          Fiscal year 2010: $2,271,960,000,000.
                          Fiscal year 2011: $2,329,022,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                          Fiscal year 2007: $2,262,787,000,000.
                          Fiscal year 2008: $2,257,421,000,000.
                          Fiscal year 2009: $2,263,020,000,000.
                          Fiscal year 2010: $2,301,476,000,000.
                          Fiscal year 2011: $2,340,846,000,000.
          (4) Deficits (on-budget).--For purposes of the 
        enforcement of this resolution, the amounts of the 
        deficits (on-budget) are as follows:
                          Fiscal year 2007: $503,861,000,000.
                          Fiscal year 2008: $412,170,000,000.
                          Fiscal year 2009: $335,307,000,000.
                          Fiscal year 2010: $284,937,000,000.
                          Fiscal year 2011: $255,998,000,000.
          (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 2007: $9,156,000,000,000.
                          Fiscal year 2008: $9,690,000,000,000.
                          Fiscal year 2009: 
                        $10,146,000,000,000.
                          Fiscal year 2010: 
                        $10,542,000,000,000.
                          Fiscal year 2011: 
                        $10,916,000,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                          Fiscal year 2007: $5,270,000,000,000.
                          Fiscal year 2008: $5,477,000,000,000.
                          Fiscal year 2009: $5,591,000,000,000.
                          Fiscal year 2010: $5,637,000,000,000.
                          Fiscal year 2011: $5,637,000,000,000.

SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2007 through 2011 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $510,580,000,000.
                          (B) Outlays, $534,623,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $481,271,000,000.
                          (B) Outlays, $502,489,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $481,126,000,000.
                          (B) Outlays, $489,152,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $481,099,000,000.
                          (B) Outlays, $484,908,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $481,134,000,000.
                          (B) Outlays, $486,641,000,000.
          (2) International Affairs (150):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $25,820,000,000.
                          (B) Outlays, $29,603,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $24,179,000,000.
                          (B) Outlays, $25,863,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $22,456,000,000.
                          (B) Outlays, $22,853,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $22,443,000,000.
                          (B) Outlays, $20,894,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $22,432,000,000.
                          (B) Outlays, $19,817,000,000.
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $23,666,000,000.
                          (B) Outlays, $23,804,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $21,531,000,000.
                          (B) Outlays, $22,073,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $21,237,000,000.
                          (B) Outlays, $21,206,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $21,096,000,000.
                          (B) Outlays, $20,882,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $17,901,000,000.
                          (B) Outlays, $18,672,000,000.
          (4) Energy (270):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $817,000,000.
                          (B) Outlays, $247,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $41,000,000.
                          (B) Outlays, -$1,116,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$169,000,000.
                          (B) Outlays, -$1,398,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$395,000,000.
                          (B) Outlays, -$1,583,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$509,000,000.
                          (B) Outlays, -$1,693,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $28,230,000,000.
                          (B) Outlays, $31,991,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $27,649,000,000.
                          (B) Outlays, $30,547,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $27,419,000,000.
                          (B) Outlays, $29,435,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $27,340,000,000.
                          (B) Outlays, $29,284,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $26,629,000,000.
                          (B) Outlays, $27,859,000,000.
          (6) Agriculture (350):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $26,006,000,000.
                          (B) Outlays, $25,581,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $20,430,000,000.
                          (B) Outlays, $19,739,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $18,742,000,000.
                          (B) Outlays, $18,006,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $18,392,000,000.
                          (B) Outlays, $17,506,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $18,534,000,000.
                          (B) Outlays, $17,767,000,000.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $15,853,000,000.
                          (B) Outlays, $7,025,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $13,028,000,000.
                          (B) Outlays, $7,025,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $12,000,000,000.
                          (B) Outlays, $6,735,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $11,504,000,000.
                          (B) Outlays, $4,493,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $11,298,000,000.
                          (B) Outlays, $3,885,000,000.
          (8) Transportation (400):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $69,371,000,000.
                          (B) Outlays, $70,226,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $67,054,000,000.
                          (B) Outlays, $72,017,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $63,686,000,000.
                          (B) Outlays, $68,586,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $19,197,000,000.
                          (B) Outlays, $50,759,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $15,594,000,000.
                          (B) Outlays, $32,178,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $9,080,000,000.
                          (B) Outlays, $26,942,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $7,963,000,000.
                          (B) Outlays, $21,875,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $7,963,000,000.
                          (B) Outlays, $12,974,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $7,965,000,000.
                          (B) Outlays, $9,423,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $7,967,000,000.
                          (B) Outlays, $8,466,000,000.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $78,706,000,000.
                          (B) Outlays, $86,415,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $75,421,000,000.
                          (B) Outlays, $77,978,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $73,973,000,000.
                          (B) Outlays, $74,089,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $72,876,000,000.
                          (B) Outlays, $72,155,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $71,986,000,000.
                          (B) Outlays, $70,929,000,000.
          (11) Health (550):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $269,698,000,000.
                          (B) Outlays, $272,369,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $279,170,000,000.
                          (B) Outlays, $279,387,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $291,222,000,000.
                          (B) Outlays, $288,810,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $300,435,000,000.
                          (B) Outlays, $299,486,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $312,928,000,000.
                          (B) Outlays, $311,802,000,000.
          (12) Medicare (570):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $359,207,000,000.
                          (B) Outlays, $364,668,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $376,393,000,000.
                          (B) Outlays, $376,441,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $395,226,000,000.
                          (B) Outlays, $394,815,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $413,594,000,000.
                          (B) Outlays, $413,906,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $437,641,000,000.
                          (B) Outlays, $437,686,000,000.
          (13) Income Security (600):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $346,496,000,000.
                          (B) Outlays, $355,735,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $355,080,000,000.
                          (B) Outlays, $361,544,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $365,727,000,000.
                          (B) Outlays, $369,553,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $376,340,000,000.
                          (B) Outlays, $378,687,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $390,469,000,000.
                          (B) Outlays, $391,965,000,000.
          (14) Social Security (650):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,918,000,000.
                          (B) Outlays, $16,918,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $18,817,000,000.
                          (B) Outlays, $18,817,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $20,697,000,000.
                          (B) Outlays, $20,697,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $22,869,000,000.
                          (B) Outlays, $22,869,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $26,483,000,000.
                          (B) Outlays, $26,483,000,000.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $73,806,000,000.
                          (B) Outlays, $72,887,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $75,996,000,000.
                          (B) Outlays, $76,254,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $76,885,000,000.
                          (B) Outlays, $77,093,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $77,271,000,000.
                          (B) Outlays, $77,312,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $81,471,000,000.
                          (B) Outlays, $81,289,000,000.
          (16) Administration of Justice (750):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $42,307,000,000.
                          (B) Outlays, $42,166,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $40,721,000,000.
                          (B) Outlays, $41,941,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $40,620,000,000.
                          (B) Outlays, $41,375,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $40,514,000,000.
                          (B) Outlays, $40,785,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $40,404,000,000.
                          (B) Outlays, $40,382,000,000.
          (17) General Government (800):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $18,206,000,000.
                          (B) Outlays, $18,353,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $17,880,000,000.
                          (B) Outlays, $17,962,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $17,988,000,000.
                          (B) Outlays, $17,849,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $18,100,000,000.
                          (B) Outlays, $17,905,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $18,142,000,000.
                          (B) Outlays, $17,940,000,000.
          (18) Net Interest (900):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $351,718,000,000.
                          (B) Outlays, $351,718,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $377,930,000,000.
                          (B) Outlays, $377,930,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $395,761,000,000.
                          (B) Outlays, $395,761,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $411,255,000,000.
                          (B) Outlays, $411,255,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $421,915,000,000.
                          (B) Outlays, $421,915,000,000.
          (19) Allowances (920):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$2,830,000,000.
                          (B) Outlays, -$1,685,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$2,830,000,000.
                          (B) Outlays, -$2,260,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$2,830,000,000.
                          (B) Outlays, -$2,545,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$2,830,000,000.
                          (B) Outlays, -$2,685,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$2,830,000,000.
                          (B) Outlays, -$2,770,000,000.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$66,349,000,000.
                          (B) Outlays, -$66,799,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$68,760,000,000.
                          (B) Outlays, -$69,085,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$82,276,000,000.
                          (B) Outlays, -$82,026,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$67,105,000,000.
                          (B) Outlays, -$66,765,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$70,567,000,000.
                          (B) Outlays, -$70,367,000,000.

                  TITLE II--RECONCILIATION SUBMISSIONS


SEC. 201. RECONCILIATION IN THE HOUSE OF REPRESENTATIVES.

  (a) Submissions to Slow the Growth in Mandatory Spending and 
to Achieve Deficit Reduction.--(1) Not later than April 28, 
2006, 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 $2,083,000,000 in 
        outlays for fiscal year 2007 and $29,116,000,000 in 
        outlays for the period of fiscal years 2007 through 
        2011.
          (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 $52,000,000 in 
        outlays for fiscal year 2007 and $120,000,000 in 
        outlays for the period of fiscal years 2007 through 
        2011.
          (B) Committee on education and the workforce.--The 
        House Committee on Education and the Workforce shall 
        report changes in laws within its jurisdiction 
        sufficient to reduce the level of direct spending for 
        that committee by $1,010,000,000 in outlays for fiscal 
        year 2007 and $7,470,000,000 in outlays for the period 
        of fiscal years 2007 through 2011.
          (C) Committee on energy and commerce.--The House 
        Committee on Energy and Commerce shall report changes 
        in laws within its jurisdiction sufficient to reduce 
        the level of direct spending for that committee by 
        $1,125,000,000 in outlays for fiscal year 2007 and 
        $91,697,000,000 in outlays for the period of fiscal 
        years 2007 through 2011.
          (D) Committee on government reform.--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 
        $140,000,000 in outlays for fiscal year 2007 and 
        $1,670,000,000 in outlays for the period of fiscal 
        years 2007 through 2011.
          (E) 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 $0 in outlays for fiscal 
        year 2007 and $6,793,000,000 in outlays for the period 
        of fiscal years 2007 through 2011.
          (F) 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 $32,000,000 in outlays 
        for fiscal year 2007 and $230,000,000 in outlays for 
        the period of fiscal years 2007 through 2011.
          (G) Committee on ways and means.--The House Committee 
        on Ways and Means shall report changes in laws within 
        its jurisdiction sufficient to reduce the deficit by 
        $27,457,000,000 for fiscal year 2007 and 
        $221,189,000,000 for the period of fiscal years 2007 
        through 2011.
          (H) 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 Changes in Revenue.--The House 
Committee on Ways and Means shall report a reconciliation bill 
not later than April 28, 2006, that consists of changes in laws 
within its jurisdiction sufficient to reduce revenues by not 
more than $18,391,000,000 for fiscal year 2007 and by not more 
than $346,271,000,000 for the period of fiscal years 2007 
through 2011.
  (c) Revision of Allocations.--(1) Upon the submission to the 
Committee on the Budget of the House of a recommendation that 
has complied with its reconciliation instructions solely by 
virtue of section 310(b) of the Congressional Budget Act of 
1974, the chairman of that committee may file with the House 
appropriately revised allocations under section 302(a) of such 
Act and revised functional levels and aggregates.
  (2) Upon the submission to the House of a conference report 
recommending a reconciliation bill or resolution in which a 
committee has complied with its reconciliation instructions 
solely by virtue of this section, the chairman of the Committee 
on the Budget of the House may file with the House 
appropriately revised allocations under section 302(a) of such 
Act and revised functional levels and aggregates.
  (3) Allocations and aggregates revised pursuant to this 
subsection shall be considered to be allocations and aggregates 
established by the concurrent resolution on the budget pursuant 
to section 301 of such Act.

SEC. 202. SUBMISSION OF REPORT ON VETERANS' SAVINGS.

  In the House, not later than May 15, 2006, the Committee on 
Veterans' Affairs shall submit to the Committee on the Budget 
its findings that identify savings amounting to one percent of 
total spending under its jurisdiction from activities that are 
determined to be wasteful, unnecessary, or lower-priority. For 
purposes of this section, the report by the Committee on 
Veterans' Affairs shall be inserted in the Congressional Record 
by the chairman of the Committee on the Budget not later than 
May 21, 2006.

                        TITLE III--RESERVE FUND


SEC. 301. RESERVE FUND FOR EMERGENCIES.

  In the House of Representatives and the Senate, 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 emergencies and complies with 
the requirement of section 403, then the chairman of the 
Committee on the Budget of that House shall make the 
appropriate adjustments in allocations and aggregates to the 
extent that such legislation would not increase the deficit for 
fiscal year 2007 and for the period of fiscal years 2007 
through 2011.

                      TITLE IV--BUDGET ENFORCEMENT


SEC. 401. 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 2008 and fiscal years 2009 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 
$23,565,000,000 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 2007 that first 
becomes available for any fiscal year after 2007.

SEC. 402. TURN OFF THE GEPHARDT RULE.

  Rule XXVII shall not apply with respect to the adoption by 
the Congress of a concurrent resolution on the budget for 
fiscal year 2007.

SEC. 403. EMERGENCY SPENDING.

  (a) Designations.--
          (1) Guidance.--In the House, if a provision of 
        legislation is designated as an emergency requirement 
        under this section, 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.
  (b) 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 (a)(2).
  (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 (c).
  (d) Disposition of Points of Order in the House.--As 
disposition of a point of order under subsection (b) 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.

SEC. 404. 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), 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 paragraph (1).
  (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 subsection (a).

SEC. 405. 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) 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. 406. 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.

SEC. 407. DIRECT SPENDING SAFEGUARD.

  (a) It shall not be in order in the House of Representatives 
to consider an direct spending legislation that would increase 
an on-budget deficit or decrease an on-budget surplus as 
provided by subsection (e) for any applicable time period.
  (b) For purposes of this section, the term ``applicable time 
period'' means any of the following periods:
          (1) The period of the first 5 fiscal years covered by 
        the most recently adopted concurrent resolution on the 
        budget.
          (2) The period of the 5 fiscal years following first 
        5 years covered in the most recently adopted concurrent 
        resolution on the budget.
  (c) For purposes of this section and except as provided in 
subsection (d), 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.
  (d) For purposes of this section, the term ``direct-spending 
legislation'' does not include--
          (1) any legislation the title of which is as follows: 
        ``A bill to preserve Social Security.''; or
          (2) any legislation that would cause a net increase 
        in aggregate direct spending of less than $100,000,000 
        for any applicable time period.
  (e) If direct spending legislation increases the on-budget 
deficit or decreases an on-budget surpluses when taken 
individually, it must also increase the on-budget deficit or 
decrease the on-budget surplus when taken together with all 
direct spending legislation enacted since the beginning of the 
calendar year not accounted for in the baseline assumed for the 
most recent concurrent resolution on the budget, except that 
direct spending effects resulting in net deficit reduction 
enacted pursuant to reconciliation instructions since the 
beginning of that same calendar year shall not be available.
  (f) This section may be waived by the affirmative vote of 
three-fifths of the Members, duly chosen and sworn.
  (g) For purposes of this section, the levels of budget 
authority and outlays for a fiscal year shall be determined on 
the basis of estimates made by the Committee on the Budget.
  (h) The Committee on Rules may not report a rule or order 
proposing a waiver of subsection (a).

SEC. 408. BUDGET PROTECTION MANDATORY ACCOUNT.

  (a)(1) The chairman of the Committee on the Budget shall 
maintain an account to be known as the ``Budget Protection 
Mandatory Account''. The Account shall be divided into entries 
corresponding to the allocations under section 302(a) of the 
Congressional Budget Act of 1974 in the most recently adopted 
concurrent resolution on the budget, except that it shall not 
include the Committee on Appropriations.
  (2) Each entry shall consist only of amounts credited to it 
under subsection (b). No entry of a negative amount shall be 
made.
  (b)(1) Upon the engrossment of a House bill or joint 
resolution or a House amendment to a Senate bill or joint 
resolution (other than an appropriation bill), the chairman of 
the Committee on the Budget shall--
          (A) credit the applicable entries of the Budget 
        Protection Mandatory Account by the amounts specified 
        in paragraph (2); and
          (B) reduce the applicable section 302(a) allocations 
        by the amount specified in paragraph (2).
  (2) Each amount specified in paragraph (1)(A) shall be the 
net reduction in mandatory budget authority (either under 
current law or proposed by the bill or joint resolution under 
consideration) provided by each amendment that was adopted in 
the House to the bill or joint resolution.
  (c)(1) If an amendment includes a provision described in 
paragraph (2), the chairman of the Committee on the Budget 
shall, upon the engrossment of a House bill or joint resolution 
or a House amendment to a Senate bill or joint resolution, 
other than an appropriation bill, reduce the level of total 
revenues set forth in the applicable concurrent resolution on 
the budget for the fiscal year or for the total of that first 
fiscal year and the ensuing fiscal years in an amount equal to 
the net reduction in mandatory authority (either under current 
law or proposed by a bill or joint resolution under 
consideration) provided by each amendment adopted by the House 
to the bill or joint resolution. Such adjustment shall be in 
addition to the adjustments described in subsection (b).
  (2)(A) The provision specified in paragraph (1) is as 
follows: ``The amount of mandatory budget authority reduced by 
this amendment may be used to offset a decrease in revenues.''
  (B) All points of order are waived against an amendment 
including the text specified in subparagraph (A) provided the 
amendment is otherwise in order.
  (d) As used in this rule, the term--
          (1) ``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 2007 or any subsequent fiscal year, as the case 
        may be.
          (2) ``mandatory budget authority'' means any 
        entitlement authority as defined by, and interpreted 
        for purposes of, the Congressional Budget Act of 1974.
  (e) During the consideration of any bill or joint resolution, 
the chairman of the Committee on the Budget shall maintain a 
running tally, which shall be available to all Members, of the 
amendments adopted reflecting increases and decreases of budget 
authority in the bill or joint resolution.

SEC. 409. BUDGET DISCRETIONARY ACCOUNTS.

  (a)(1) The chairman of the Committee on the Budget shall 
maintain an account to be known as the ``Budget Protection 
Discretionary Account'';. The Account shall be divided into 
entries corresponding to the allocation to the Committee on 
Appropriations, and the committee's suballocations, under 
section 302(a) and 302(b) of the Congressional Budget Act of 
1974.
  (2) Each entry shall consist only of amounts credited to it 
under subsection (b). No entry of a negative amount shall be 
made.
  (b)(1) Upon the engrossment of a House appropriations bill, 
the chairman of the Committee on the Budget shall--
          (A) credit the applicable entries of the Budget 
        Protection Discretionary Account by the amounts 
        specified in paragraph (2).
          (B) reduce the applicable 302(a) and (b) allocations 
        by the amount specified in paragraph (2).
  (2) Each amount specified in subparagraph (A) shall be the 
net reduction in discretionary budget authority provided by 
each amendment adopted by the House to the bill or joint 
resolution.
  (c)(1) If an amendment includes a provision described in 
paragraph (2), the chairman of the Committee on the Budget 
shall, upon the engrossment of a House appropriations bill, 
reduce the level of total revenues set forth in the applicable 
concurrent resolution on the budget for the fiscal year or for 
the total of that first fiscal year and the ensuing fiscal 
years in an amount equal to the net reduction in discretionary 
budget authority provided by each amendment that was adopted by 
the House to the bill or joint resolution. Such adjustment 
shall be in addition to the adjustments described in subsection 
(b).
  (2)(A) The provision specified in paragraph (1) is as 
follows: ``The amount of discretionary budget authority reduced 
by this amendment may be used to offset a decrease in 
revenues.''
  (B) All points of order are waived against an amendment 
including the text specified in subparagraph (A) provided the 
amendment is otherwise in order.
  (d) As used in this rule, 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 2007 
or any subsequent fiscal year, as the case may be.
  (e) During the consideration of any bill or joint resolution, 
the chairman of the Committee on the Budget shall maintain a 
running tally, which shall be available to all Members, of the 
amendments adopted reflecting increases and decreases of budget 
authority in the bill or joint resolution.
                              ----------                              


      3. An Amendment in the Nature of a Substitute if Offered by 
Representative Spratt of South Carolina, 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 2007.

  The Congress declares that this is the concurrent resolution 
on the budget for fiscal year 2007, including appropriate 
budgetary levels for fiscal years 2008 through 2016.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS


SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2007 through 2016:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2007: $1,793,599,000,000.
                          Fiscal year 2008: $1,907,776,000,000.
                          Fiscal year 2009: $2,017,571,000,000.
                          Fiscal year 2010: $2,121,977,000,000.
                          Fiscal year 2011: $2,343,071,000,000.
                          Fiscal year 2012: $2,547,527,000,000.
                          Fiscal year 2013: $2,679,797,000,000.
                          Fiscal year 2014: $2,821,098,000,000.
                          Fiscal year 2015: $2,972,309,000,000.
                          Fiscal year 2016: $3,133,156,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                          Fiscal year 2007: $26,000,000,000.
                          Fiscal year 2008: $14,000,000,000.
                          Fiscal year 2009: $14,000,000,000.
                          Fiscal year 2010: $14,000,000,000.
                          Fiscal year 2011: $14,000,000,000.
                          Fiscal year 2012: $14,000,000,000.
                          Fiscal year 2013: $14,000,000,000.
                          Fiscal year 2014: $14,000,000,000.
                          Fiscal year 2015: $13,000,000,000.
                          Fiscal year 2016: $13,000,000,000.
          (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 2007: $2,298,682,000,000.
                  Fiscal year 2008: $2,359,765,000,000.
                  Fiscal year 2009: $2,459,406,000,000.
                  Fiscal year 2010: $2,573,696,000,000.
                  Fiscal year 2011: $2,700,925,000,000.
                  Fiscal year 2012: $2,749,534,000,000.
                  Fiscal year 2013: $2,885,177,000,000.
                  Fiscal year 2014: $3,007,848,000,000.
                  Fiscal year 2015: $3,141,006,000,000.
                  Fiscal year 2016: $3,314,359,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2007: $2,330,929,000,000.
                  Fiscal year 2008: $2,381,322,000,000.
                  Fiscal year 2009: $2,459,918,000,000.
                  Fiscal year 2010: $2,564,225,000,000.
                  Fiscal year 2011: $2,688,269,000,000.
                  Fiscal year 2012: $2,723,663,000,000.
                  Fiscal year 2013: $2,863,331,000,000.
                  Fiscal year 2014: $2,985,510,000,000.
                  Fiscal year 2015: $3,118,637,000,000.
                  Fiscal year 2016: $3,298,110,000,000.
          (4) Deficits (on-budget).--For purposes of the 
        enforcement of this resolution, the amounts of the 
        deficits (on-budget) are as follows:
                  Fiscal year 2007: $537,329,000,000.
                  Fiscal year 2008: $473,547,000,000.
                  Fiscal year 2009: $442,347,000,000.
                  Fiscal year 2010: $442,248,000,000.
                  Fiscal year 2011: $345,198,000,000.
                  Fiscal year 2012: $176,135,000,000.
                  Fiscal year 2013: $183,534,000,000.
                  Fiscal year 2014: $164,412,000,000.
                  Fiscal year 2015: $146,328,000,000.
                  Fiscal year 2016: $164,954,000,000.
          (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 2007: $9,165,000,000,000.
                  Fiscal year 2008: $9,750,000,000,000.
                  Fiscal year 2009: $10,299,000,000,000.
                  Fiscal year 2010: $10,846,000,000,000.
                  Fiscal year 2011: $11,289,000,000,000.
                  Fiscal year 2012: $11,575,000,000,000.
                  Fiscal year 2013: $11,857,000,000,000.
                  Fiscal year 2014: $12,120,000,000,000.
                  Fiscal year 2015: $12,361,000,000,000.
                  Fiscal year 2016: $12,607,000,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2007: $5,311,000,000,000.
                  Fiscal year 2008: $5,583,000,000,000.
                  Fiscal year 2009: $5,806,000,000,000.
                  Fiscal year 2010: $6,011,000,000,000.
                  Fiscal year 2011: $6,102,000,000,000.
                  Fiscal year 2012: $6,015,000,000,000.
                  Fiscal year 2013: $5,925,000,000,000.
                  Fiscal year 2014: $5,811,000,000,000.
                  Fiscal year 2015: $5,674,000,000,000.
                  Fiscal year 2016: $5,552,000,000,000.

SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2006 through 2016 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $512,901,000,000.
                          (B) Outlays, $534,858,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $484,661,000,000.
                          (B) Outlays, $505,516,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $504,753,000,000.
                          (B) Outlays, $505,874,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $514,858,000,000.
                          (B) Outlays, $512,573,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $525,781,000,000.
                          (B) Outlays, $514,894,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $538,838,000,000.
                          (B) Outlays, $528,111,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $552,025,000,000.
                          (B) Outlays, $544,786,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $565,541,000,000.
                          (B) Outlays, $558,050,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $579,657,000,000.
                          (B) Outlays, $571,880,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $594,030,000,000.
                          (B) Outlays, $590,776,000,000.
          (2) International Affairs (150):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $31,235,000,000.
                          (B) Outlays, $34,289,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $34,225,000,000.
                          (B) Outlays, $33,429,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $34,222,000,000.
                          (B) Outlays, $33,319,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $33,943,000,000.
                          (B) Outlays, $33,167,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $34,382,000,000.
                          (B) Outlays, $32,806,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $35,110,000,000.
                          (B) Outlays, $32,577,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $35,926,000,000.
                          (B) Outlays, $33,075,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $36,795,000,000.
                          (B) Outlays, $33,701,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $37,623,000,000.
                          (B) Outlays, $34,456,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $38,428,000,000.
                          (B) Outlays, $35,206,000,000.
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $25,,938,000,000.
                          (B) Outlays, $25,108,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $26,946,000,000.
                          (B) Outlays, $25,964,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $27,943,000,000.
                          (B) Outlays, $26,930,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $29,110,000,000.
                          (B) Outlays, $28,000,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $30,339,000,000.
                          (B) Outlays, $29,164,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $30,914,000,000.
                          (B) Outlays, $30,028,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $31,471,000,000.
                          (B) Outlays, $30,647,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $32,037,000,000.
                          (B) Outlays, $31,225,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $32,631,000,000.
                          (B) Outlays, $31,804,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $33,228,000,000.
                          (B) Outlays, $32,395,000,000.
          (4) Energy (270):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $2,476,000,000.
                          (B) Outlays, $949,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $2,688,000,000.
                          (B) Outlays, $708,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $2,544,000,000.
                          (B) Outlays, $1,010,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $2,591,000,000.
                          (B) Outlays, $1,109,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $2,606,000,000.
                          (B) Outlays, $1,112,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $2,539,000,000.
                          (B) Outlays, $1,456,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $2,623,000,000.
                          (B) Outlays, $1,376,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $2,707,000,000.
                          (B) Outlays, $1,661,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $2,792,000,000.
                          (B) Outlays, $1,844,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $2,887,000,000.
                          (B) Outlays, $1,915,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $32,549,000,000.
                          (B) Outlays, $34,328,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $32,952,000,000.
                          (B) Outlays, $33,641,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $34,243,000,000.
                          (B) Outlays, $34,469,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $34,913,000,000.
                          (B) Outlays, $35,166,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $35,359,000,000.
                          (B) Outlays, $35,592,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $36,361,000,000.
                          (B) Outlays, $36,443,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $37,229,000,000.
                          (B) Outlays, $37,215,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $38,107,000,000.
                          (B) Outlays, $37,973,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $39,058,000,000.
                          (B) Outlays, $38,777,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $40,298,000,000.
                          (B) Outlays, $39,922,000,000.
          (6) Agriculture (350):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $27,546,000,000.
                          (B) Outlays, $26,819,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $25,577,000,000.
                          (B) Outlays, $24,739,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $24,949,000,000.
                          (B) Outlays, $24,182,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $23,905,000,000.
                          (B) Outlays, $23,048,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $23,621,000,000.
                          (B) Outlays, $22,857,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $23,434,000,000.
                          (B) Outlays, $22,735,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $23,213,000,000.
                          (B) Outlays, $22,527,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $23,147,000,000.
                          (B) Outlays, $22,485,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $22,284,000,000.
                          (B) Outlays, $21,648,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $22,410,000,000.
                          (B) Outlays, $21,758,000,000.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,698,000,000.
                          (B) Outlays, $8,073,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $13,958,000,000.
                          (B) Outlays, $8,353,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $13,315,000,000.
                          (B) Outlays, $8,052,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $17,061,000,000.
                          (B) Outlays, $9,093,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $13,168,000,000.
                          (B) Outlays, $6,040,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $13,396,000,000.
                          (B) Outlays, $5,973,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $13,500,000,000.
                          (B) Outlays, $5,603,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $13,601,000,000.
                          (B) Outlays, $4,964,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $13,799,000,000.
                          (B) Outlays, $4,706,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $13,922,000,000.
                          (B) Outlays, $4,592,000,000.
          (8) Transportation (400):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $80,547,000,000.
                          (B) Outlays, $76,316,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $83,069,000,000.
                          (B) Outlays, $78,827,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $75,081,000,000.
                          (B) Outlays, $79,287,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $75,886,000,000.
                          (B) Outlays, $80,019,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $76,690,000,000.
                          (B) Outlays, $81,168,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $77,515,000,000.
                          (B) Outlays, $82,531,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $78,361,000,000.
                          (B) Outlays, $84,060,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $79,238,000,000.
                          (B) Outlays, $85,652,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $80,164,000,000.
                          (B) Outlays, $87,783,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $81,109,000,000.
                          (B) Outlays, $89,530,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,363,000,000.
                          (B) Outlays, $31,349,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $13,673,000,000.
                          (B) Outlays, $25,518,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $13,951,000,000.
                          (B) Outlays, $22,005,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $14,224,000,000.
                          (B) Outlays, $18,481,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $14,494,000,000.
                          (B) Outlays, $14,393,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $14,779,000,000.
                          (B) Outlays, $14,076,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $15,074,000,000.
                          (B) Outlays, $14,375,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $15,365,000,000.
                          (B) Outlays, $14,666,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $15,674,000,000.
                          (B) Outlays, $14,959,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $15,980,000,000.
                          (B) Outlays, $15,296,000,000.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $90,774,000,000.
                          (B) Outlays, $91,065,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $91,492,000,000.
                          (B) Outlays, $89,579,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $93,275,000,000.
                          (B) Outlays, $90,659,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $95,237,000,000.
                          (B) Outlays, $92,524,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $95,890,000,000.
                          (B) Outlays, $94,307,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $97,126,000,000.
                          (B) Outlays, $94,816,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $98,372,000,000.
                          (B) Outlays, $96,074,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $99,885,000,000.
                          (B) Outlays, $97,581,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $101,355,000,000.
                          (B) Outlays, $99,012,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $102,811,000,000.
                          (B) Outlays, $100,459,000,000.
          (11) Health (550):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $277,009,000,000.
                          (B) Outlays, $274,711,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $293,454,000,000.
                          (B) Outlays, $293,003,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $314,496,000,000.
                          (B) Outlays, $311,811,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $332,644,000,000.
                          (B) Outlays, $331,249,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $354,558,000,000.
                          (B) Outlays, $352,587,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $377,770,000,000.
                          (B) Outlays, $375,314,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $403,232,000,000.
                          (B) Outlays, $400,466,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $430,683,000,000.
                          (B) Outlays, $427,732,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $460,378,000,000.
                          (B) Outlays, $457,224,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $492,667,000,000.
                          (B) Outlays, $489,380,000,000.
          (12) Medicare (570):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $382,955,000,000.
                          (B) Outlays, $388,413,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $413,820,000,000.
                          (B) Outlays, $413,815,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $444,052,000,000.
                          (B) Outlays, $443,684,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $473,989,000,000.
                          (B) Outlays, $474,196,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $524,509,000,000.
                          (B) Outlays, $524,498,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $527,728,000,000.
                          (B) Outlays, $527,316,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $588,674,000,000.
                          (B) Outlays, $588,882,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $637,861,000,000.
                          (B) Outlays, $637,832,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $692,503,000,000.
                          (B) Outlays, $691,980,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $778,449,000,000.
                          (B) Outlays, $778,642,000,000.
          (13) Income Security (600):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $358,606,000,000.
                          (B) Outlays, $363,159,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $373,318,000,000.
                          (B) Outlays, $376,098,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $385,726,000,000.
                          (B) Outlays, $387,538,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $397,837,000,000.
                          (B) Outlays, $398,691,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $413,602,000,000.
                          (B) Outlays, $413,948,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $400,150,000,000.
                          (B) Outlays, $399,943,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $415,125,000,000.
                          (B) Outlays, $415,175,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $426,333,000,000.
                          (B) Outlays, $426,726,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $437,450,000,000.
                          (B) Outlays, $438,186,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $453,901,000,000.
                          (B) Outlays, $454,986,000,000.
          (14) Social Security (650):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,922,000,000.
                          (B) Outlays, $16,922,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $18,814,000,000.
                          (B) Outlays, $18,814,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $20,694,000,000.
                          (B) Outlays, $20,694,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $22,866,000,000.
                          (B) Outlays, $22,866,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $26,480,000,000.
                          (B) Outlays, $26,480,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $29,423,000,000.
                          (B) Outlays, $29,423,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $32,168,000,000.
                          (B) Outlays, $32,168,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $35,122,000,000.
                          (B) Outlays, $35,122,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $38,362,000,000.
                          (B) Outlays, $38,362,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $42,048,000,000.
                          (B) Outlays, $42,048,000,000.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $74,627,000,000.
                          (B) Outlays, $73,944,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $76,984,000,000.
                          (B) Outlays, $77,251,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $79,240,000,000.
                          (B) Outlays, $79,038,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $81,348,000,000.
                          (B) Outlays, $81,053,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $86,392,000,000.
                          (B) Outlays, $86,051,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $83,089,000,000.
                          (B) Outlays, $82,679,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $88,438,000,000.
                          (B) Outlays, $88,016,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $90,784,000,000.
                          (B) Outlays, $90,395,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $93,256,000,000.
                          (B) Outlays, $92,873,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $99,303,000,000.
                          (B) Outlays, $99,030,000,000.
          (16) Administration of Justice (750):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $42,858,000,000.
                          (B) Outlays, $43,683,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $42,899,000,000.
                          (B) Outlays, $43,573,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $43,615,000,000.
                          (B) Outlays, $43,874,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $44,744,000,000.
                          (B) Outlays, $44,654,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $45,909,000,000.
                          (B) Outlays, $45,531,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $47,116,000,000.
                          (B) Outlays, $46,722,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $48,334,000,000.
                          (B) Outlays, $47,905,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $49,606,000,000.
                          (B) Outlays, $49,173,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $53,865,000,000.
                          (B) Outlays, $53,426,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $55,571,000,000.
                          (B) Outlays, $55,121,000,000.
          (17) General Government (800):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $19,376,000,000.
                          (B) Outlays, $19,135,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $19,003,000,000.
                          (B) Outlays, $18,921,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $19,573,000,000.
                          (B) Outlays, $19,188,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $20,139,000,000.
                          (B) Outlays, $19,738,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $20,655,000,000.
                          (B) Outlays, $20,290,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $21,343,000,000.
                          (B) Outlays, $21,118,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $22,064,000,000.
                          (B) Outlays, $21,635,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $22,789,000,000.
                          (B) Outlays, $22,326,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $23,566,000,000.
                          (B) Outlays, $23,129,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $24,338,000,000.
                          (B) Outlays, $24,077,000,000.
          (18) Net Interest (900):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $353,539,000,000.
                          (B) Outlays, $353,539,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $383,537,000,000.
                          (B) Outlays, $383,537,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $406,539,000,000.
                          (B) Outlays, $406,539,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $429,566,000,000.
                          (B) Outlays, $429,566,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $450,328,000,000.
                          (B) Outlays, $450,328,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $465,156,000,000.
                          (B) Outlays, $465,156,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $475,823,000,000.
                          (B) Outlays, $475,823,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $487,343,000,000.
                          (B) Outlays, $487,343,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $498,585,000,000.
                          (B) Outlays, $498,585,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $508,349,000,000.
                          (B) Outlays, $508,349,000,000.
          (19) Allowances (920):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $4,348,000,000.
                          (B) Outlays, $3,696,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $-2,397,000,000.
                          (B) Outlays, $-1,385,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $-4,325,000,000.
                          (B) Outlays, $-4,036,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $-4,390,000,000.
                          (B) Outlays, $-4,380,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $-4,554,000,000.
                          (B) Outlays, $-4,529,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $-1,150,000,000.
                          (B) Outlays, $-1,661,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $-1,140,000,000.
                          (B) Outlays, $-1,142,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $-1,130,000,000.
                          (B) Outlays, $-1,132,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $-1,120,000,000.
                          (B) Outlays, $-1,122,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $-1,110,000,000.
                          (B) Outlays, $-1,112,000,000.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $-68,585,000,000.
                          (B) Outlays, $-69,427,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $-68,727,000,000.
                          (B) Outlays, $-68,399,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $-74,480,000,000.
                          (B) Outlays, $-74,199,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $-66,775,000,000.
                          (B) Outlays, $-66,588,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $-69,284,000,000.
                          (B) Outlays, $-69,247,000,000.
                  Fiscal year 2012:
                          (A) New budget authority, 
                        $-71,103,000,000.
                          (B) Outlays, $-71,094,000,000.
                  Fiscal year 2013:
                          (A) New budget authority, 
                        $-75,335,000,000.
                          (B) Outlays, $-75,335,000,000.
                  Fiscal year 2014:
                          (A) New budget authority, 
                        $-77,966,000,000.
                          (B) Outlays, $-77,966,000,000.
                  Fiscal year 2015:
                          (A) New budget authority, 
                        $-80,876,000,000.
                          (B) Outlays, $-80,876,000,000.
                  Fiscal year 2016:
                          (A) New budget authority, 
                        $-84,260,000,000.
                          (B) Outlays, $-84,260,000,000.

                        TITLE II--RESERVE FUNDS


SEC. 201. RESERVE FUND TO ADDRESS MEDICARE ADVANTAGE OVERPAYMENTS AND 
                    IMPROVE THE MEDICARE PRESCRIPTION DRUG BENEFIT.

  (a) In General.--In the House, if the Committee on Ways and 
Means or the Committee on Energy and Commerce reports a bill or 
joint resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that provides for a 
reduction in new budgetary authority and outlays under part C 
of title XVIII of the Social Security Act (Medicare Advantage), 
including elimination of the Medicare Advantage Regional Plan 
Stabilization Fund, or through authority to negotiate 
prescription drug prices, or both, and that provides for new 
budget authority in a corresponding amount through authority to 
improve the Medicare prescription drug benefit described in 
subsection (b), to the extent that the combined effect would 
not increase the deficit for fiscal year 2007 and for the 
period of fiscal years 2007 through 2016, the chairman of the 
Committee on the Budget shall revise the appropriate budgetary 
aggregates and allocations of new budget authority and outlays 
to take into account the budgetary effects of such measures for 
such purposes.
  (b) Authority Defined.--For purposes of subsection (a), the 
authority described in this section may include any of the 
following:
          (1) Reductions in beneficiary cost-sharing, including 
        partial or complete elimination of the donut hole.
          (2) Minimum standard transition coverage for new 
        enrollees, or enrollees changing prescription drug 
        plans.
          (3) Prohibition of additional restrictions or 
        limitations on coverage during the year, such as 
        changing the formulary.
          (4) Reimbursement of third parties for 2006 
        transition costs.
          (5) Other methods that simplify enrollment (including 
        initial enrollment, annual enrollment, or changes in 
        between plans) in Part D or improve the Medicare Part D 
        drug benefit; and
          (6) Creation of a prescription drug plan option 
        offered through Medicare with drug prices negotiated by 
        the Secretary of the Department of Health and Human 
        Services.

SEC. 202. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH INSURANCE COVERAGE 
                    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, including ensuring that cost-sharing is affordable 
and protecting Medicaid beneficiaries from cost-sharing 
increases and preventing the erosion of Medicaid, State 
Children's Health Insurance Program, and other public and 
private coverage, 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 2007 and for the period of fiscal years 2007 
through 2016.

SEC. 203. DEFICIT-NEUTRAL RESERVE FUND TO PROTECT MEDICARE 
                    BENEFICIARIES WHO ENROLL IN THE PRESCRIPTION DRUG 
                    BENEFIT DURING 2006.

  In the House, if legislation is reported, or if an amendment 
thereto is offered or a conference report thereon is submitted 
that extends the annual open enrollment period under the 
Medicare prescription drug program under part D of title XVIII 
through all of 2006 without imposing a late enrollment penalty 
for months during such period 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 2007 and for the period of fiscal years 2007 
through 2016.

SEC. 204. DEFICIT-NEUTRAL RESERVE FUND FOR PHYSICIAN PAYMENT INCREASES 
                    UNDER MEDICARE.

  (a) In General.--In the House, if the Committee on Ways and 
Means or the Committee on Energy and Commerce reports a bill or 
joint resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that has the effect of 
increasing the reimbursement rate for physicians under section 
1848(d) of the Social Security 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 2007 and for the period of 
fiscal years 2007 through 2016.

SEC. 205. RESERVE FUND FOR THE REFORM OF THE REGULATION OF GOVERNMENT-
                    SPONSORED ENTERPRISES.

  In the House, if--
          (1) the Committee on Financial Services reports a 
        bill or joint resolution, or if an amendment is offered 
        thereto or a conference report is submitted thereon, 
        that reforms the regulation of certain housing-related 
        Government-sponsored enterprises; and
          (2) that committee is within its allocation as 
        provided under section 302(a) of the Congressional 
        Budget Act of 1974;
the chairman of the Committee on the Budget may make the 
appropriate adjustments in allocations and aggregates to the 
extent that such legislation would not increase the deficit for 
fiscal year 2007 and the period of fiscal years 2007 through 
2016.

SEC. 206. RESERVE FUND FOR CALENDAR YEAR 2007 ALTERNATIVE MINIMUM TAX 
                    RELIEF.

  If the Committee on Ways and Means reports a bill, or an 
amendment is offered thereto or a conference report is 
submitted thereon, that would increase the exemption amounts 
specified in section 55(d)(1) of the Internal Revenue Code of 
1986 with respect to taxable years beginning in calendar year 
2007, the chairman of the Committee on the Budget may make the 
appropriate adjustments in allocations and aggregates for 
fiscal year 2007 to the extent that such legislation would not 
reduce revenues below the aggregate level of revenues provided 
in section 101(1)(A) for the period of fiscal years 2007 
through 2016.

SEC. 207. RESERVE FUND FOR SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                    DETERMINATION ACT REAUTHORIZATION.

  In the House, after the filing of a rule that provides for 
the consideration of any bill or joint resolution or whenever 
any bill or joint resolution is placed on any calendar, or if 
an amendment is offered to or conference report is submitted on 
any bill or joint resolution that provides for the 
reauthorization of the Secure Rural Schools and Community Self-
Determination Act (Public Law 106-393), then the chairman of 
the Committee on the Budget may make the appropriate 
adjustments in allocations and aggregates to the extent that 
such legislation would not increase the deficit for the period 
of fiscal years 2007 through 2016.

SEC. 208. RESERVE FUND FOR THE NATIONAL FLOOD INSURANCE PROGRAM TO MEET 
                    OUTSTANDING CLAIMS FOR FLOOD DAMAGE IN THE GULF.

  In the House the chairman of the Committee on the Budget may 
make the appropriate adjustments in allocations and aggregates 
for the purpose of liquidating the National Flood Insurance 
Fund's remaining contractual obligations resulting from claims 
made as a result of floods that occurred in 2005.

                     TITLE III--BUDGET ENFORCEMENT


SEC. 301. REQUIRING A SEPARATE VOTE IF THE STATUTORY DEBT LIMIT IS TO 
                    BE INCREASED.

  The Rules of the House of Representatives are amended by 
repealing rule XXVII (relating to the statutory limit on the 
debt).

SEC. 302. RECONCILIATION SHALL NOT BE USED TO INCREASE THE DEFICIT.

  (a) Point of Order.--It shall not be in order in the House to 
consider any concurrent resolution on the budget in which the 
combined effect of any reconciliation instructions increases 
the deficit for any of the following periods:
          (1) The first year covered by that concurrent 
        resolution on the budget.
          (2) The period of the first 5 fiscal years covered by 
        that concurrent resolution on the budget.

SEC. 303. ADJUSTMENTS FOR TAX LEGISLATION.

  In the House, if the Committee on Ways and Means reports a 
bill or joint resolution, or an amendment is offered thereto or 
a conference report is submitted thereon, that amends the 
Internal Revenue Code of 1986 by extending the expiration dates 
for Federal tax policies that expired during fiscal year 2006 
or that expire during the period of fiscal years 2007 through 
2016, then the chairman of the Committee on the Budget may make 
appropriate adjustments in the allocations and aggregates of 
budget authority, outlays, and revenue set forth in this 
resolution to reflect the budgetary effects of such 
legislation, but only to the extent the adjustments would not 
cause the level of revenue to be less than the level of revenue 
provided for in this resolution for the period of fiscal years 
2007 through 2016 and would not cause the deficit to exceed the 
appropriate level of deficits provided for in this resolution 
for the period of fiscal years 2007 through 2016.

SEC. 304. EXEMPTION OF AVIAN BIRD FLU RESPONSE.

  In the House, if any bill or joint resolution is reported, or 
an amendment is offered thereto or a conference report is filed 
thereon, that makes appropriations for fiscal year 2007 to 
combat avian flu, increase local preparedness, and develop a 
vaccine to innoculate the United States population, then the 
new budget authority, new entitlement authority, or outlays 
resulting therefrom shall not count for purposes of titles III 
or IV of the Congressional Budget Act of 1974.

SEC. 305. OVERSEAS CONTINGENCY OPERATIONS.

  (a) Exemption of Overseas Contingency Operations.--In the 
House, if any bill or joint resolution is reported, or an 
amendment is offered thereto or a conference report is filed 
thereon, that makes appropriations for fiscal year 2007 for 
contingency operations directly related to the global war on 
terrorism, and other unanticipated defense-related operations, 
then the new budget authority, new entitlement authority, 
outlays, or receipts resulting therefrom shall not count for 
purposes of titles III or IV of the Congressional Budget Act of 
1974.
  (b) Current Level.--Amounts included in this resolution for 
the purpose set forth in this section shall be considered to be 
current law for purposes of the preparation of the current 
level of budget authority and outlays and the appropriate 
levels shall be adjusted upon the enactment of such bill.

                      TITLE IV--SENSE OF CONGRESS


SEC. 401. SENSE OF THE HOUSE ON DEFENSE PRIORITIES.

  It is the sense of the House that--
          (1) funding cooperative threat reduction and nuclear 
        nonproliferation programs at a level commensurate with 
        the risk is also a compelling homeland defense 
        priority, and the President's budget should have 
        requested sufficient funding for these programs;
          (2) funding Army National Guard troop strength to the 
        authorized level of 350,000 is critical to support 
        homeland defense, crisis response in the United States, 
        and to support overseas deployments and the President's 
        budget should have requested sufficient funding for 
        this requirement;
          (3) ensuring the $150,000 death gratuity benefit be 
        provided retroactively to those beneficiaries from May 
        5, 2005, through August 31, 2005, is a high priority 
        that should not have been omitted from the President's 
        budget request;
          (4) increasing the level of free life insurance 
        coverage from $150,000 to $400,000 to service members 
        in a combat zone through the Service members Group Life 
        Insurance Program (SGLI) is a high priority which 
        should not have been omitted from the President's 
        budget request;
          (5) ensuring Tricare health care fees for military 
        retirees under the age of 65 remain at current rates is 
        a high priority;
          (6) increasing pay and reenlistment bonuses are high 
        priorities which should not have been omitted from the 
        President's budget request because they are critical to 
        the retention of experienced personnel, particularly 
        senior noncommissioned officers and junior officers;
          (7) increasing funds for family service centers to 
        support families of deploying service members is a high 
        priority, and the President's budget should have 
        requested sufficient funding for this purpose;
          (8) funding the Missile Defense Agency at a 
        substantial but lower level and de-emphasizing space-
        based interceptor development will ensure a more 
        measured acquisition strategy, yet still support a 
        robust ballistic missile defense program;
          (9) funding satellite research, development, and 
        procurement at a level below the amount requested for 
        fiscal year 2007, which amounts to a 16 percent 
        increase above the current level, will be sufficient to 
        develop new satellite technologies while ensuring a 
        more prudent acquisition strategy;
          (10) providing sufficient resources to implement 
        Government Accountability Office recommendations, such 
        as improving financial management and contracting 
        practices at the Department of Defense, should identify 
        billions of dollars of obligations and disbursements 
        and government overcharges for which the Department of 
        Defense cannot account, and should result in 
        substantial annual savings;
          (11) all savings that accrue from the actions 
        recommended in paragraphs (8) through (10) should be 
        used to fund higher priorities within the national 
        security function of the budget (050), and especially 
        those high priorities identified in paragraphs (1) 
        through (7).

SEC. 402. POLICY.

  It is the policy of this concurrent resolution on the budget 
to balance long-term deficit reduction with middle-income tax 
relief, such as--
          (1) extension of the child tax credit;
          (2) extension of marriage penalty relief;
          (3) extension of the 10 percent individual income tax 
        bracket;
          (4) modification of the alternative minimum tax to 
        minimize its impact on middle-income taxpayers;
          (5) elimination of estate taxes on all but a minute 
        fraction of estates by reforming and substantially 
        increasing the unified credit;
          (6) extension of the research and experimentation tax 
        credit; and
          (7) extension of the deduction for State and local 
        sales taxes.
To achieve this tax relief, this resolution assumes 
$150,000,000,000 in tax relief, and the accommodation of 
additional tax relief provided the additional revenue loss is 
offset such as through the recovery of a portion of unpaid 
revenue (commonly known as the ``tax gap'') owed the United 
States Treasury under the existing tax code and estimated to be 
$290,000,000,000 in 2001 alone.

SEC. 403. 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 for military employees.

SEC. 404. SENSE OF THE HOUSE ON EXTENSION OF THE STATUTORY PAY-AS-YOU-
                    GO RULE.

  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. 405. 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 during the past decade;
          (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 inequity have 
        made compliance more challenging for the average 
        taxpayer and small business owner, increasing the 
        number of middle income families subject to the 
        alternative minimum tax, and widening the tax gap; and
          (4) this concurrent resolution on the budget 
        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, and ensures that this generation of 
        Americans does not force future generations to pay our 
        bills.

SEC. 406. SENSE OF THE HOUSE ON HOMELAND SECURITY.

  It is the sense of the House that--
          (1) this resolution provides additional homeland 
        security funding above the President's requested level 
        and the budget reported by the Committee on the budget 
        of the House for 2007 and every subsequent year;
          (2) this resolution provides $6,100,000,000 above the 
        President's requested level for 2007, and additional 
        amounts in subsequent years, in the four budget 
        functions (Function 400 Transportation; Function 450 
        Community and Regional Development; Function 550 
        Health; and Function 750 Administration of Justice) 
        which fund most nondefense homeland security 
        activities; and
          (3) the homeland security funding provided in this 
        resolution will help to strengthen the security of our 
        Nation's transportation system, particularly our ports 
        where significant security shortfalls still exist and 
        foreign ports by expanding efforts to identify and scan 
        all high-risk U.S.-bound cargo, equip our first 
        responders, help secure our borders, increase the 
        preparedness of our public health system, and 
        strengthen the Nation's homeland security.

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

  It is the sense of the House that this resolution rejects the 
President's budget cuts to the Manufacturing Extension 
Partnership, and ensures sufficient funding to protect the 
ability of the Manufacturing Extension Partnership to continue 
helping small manufacturers reach their optimal performance and 
create jobs.

SEC. 408. SENSE OF THE HOUSE ON REJECTING CUTS TO EDUCATION, HEALTH, 
                    AND TRAINING PROGRAMS.

  It is the sense of the House that:
          (1) Funding for vital education, health, social 
        services, and training programs was cut for 2006, and 
        would be reduced by a total of $7 billion below the 
        2005 level by the President's budget request for 2007.
          (2) It is imperative that Congress reject cuts to key 
        programs that the President's budget eliminates or 
        cuts. These programs include vocational education, 
        special education, college aid, and Title I, which is 
        the cornerstone of the No Child Left Behind Act. They 
        also include medical research, including the National 
        Institutes for Health and the Centers for Disease 
        Control, community services, and job training.
          (3) This resolution provides more than $7 billion 
        above the Senate budget resolution's total for non-
        defense discretionary funding for 2007 and an even 
        greater amount above the President's budget for 2007, 
        and provides an amount which is sufficient to reject 
        the President's cuts and maintain funding for vital 
        health, social services, education, and job training 
        programs.

SEC. 409. SENSE OF THE HOUSE ON RURAL DEVELOPMENT.

  It is the sense of the House that--
          (1) rural communities play an important role in the 
        American economy, and the sustained viability of rural 
        America is key to economic stability for many parts of 
        the Nation; and
          (2) this resolution supports sufficient funding for 
        agriculture, rural economic development, 
        infrastructure, research, and other priorities for 
        rural communities, and rejects the cuts proposed in the 
        President's budget.

                                  
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