[House Report 111-217]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-217
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2920) TO REINSTITUTE AND
UPDATE THE PAY-AS-YOU-GO REQUIREMENT OF BUDGET NEUTRALITY ON NEW TAX
AND MANDATORY SPENDING LEGISLATION, ENFORCED BY THE THREAT OF ANNUAL,
AUTOMATIC SEQUESTRATION
_______
July 21, 2009.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Arcuri, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 665]
The Committee on Rules, having had under consideration
House Resolution 665, 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 consideration of H.R. 2920, the
``Statutory Pay-As-You-Go Act of 2009,'' under a structured
rule. The resolution provides one hour of debate equally
divided and controlled by the chair and ranking minority member
of the Committee on the Budget.
The resolution waives all points of order against
consideration of the bill except those arising under clause 9
or 10 of rule XXI. It provides that the amendment in the nature
of a substitute printed in part A of this report, modified by
the amendment printed in part B of this report, shall be
considered as adopted and the bill, as amended, shall be
considered as read. The resolution waives all points of order
against the bill, as amended.
The resolution makes in order the amendment in the nature
of a substitute printed in part C of this report if offered by
Rep. Paul Ryan of Wisconsin or his designee. The amendment in
the nature of a substitute shall be considered as read and
shall be separately debatable for one hour equally divided and
controlled by the proponent and an opponent. The resolution
waives all points of order against the amendment in the nature
of a substitute printed in part C of this report except those
arising under clause 9 or 10 of rule XXI.
The resolution provides one motion to recommit the bill
with or without instructions. Finally, the rule provides that
for purposes of the concurrent resolution on the budget, the
amounts specified in section 421(a)(2)(A) and section
421(a)(2)(C) shall be considered to be those reflected in
section 314 and section 316 of the House companion measure.
EXPLANATION OF WAIVERS
Although the rule waives all points of order against
consideration of the bill (except those arising under clause 9
or 10 of rule XXI), the Committee is not aware of any points of
order against the bill's consideration. Although the rule
waives all points of order against provisions in the bill, the
Committee is not aware of any points of order against the bill.
The waivers are prophylactic.
SUMMARY OF AMENDMENT IN THE NATURE OF A SUBSTITUTE IN PART A TO BE
CONSIDERED AS ADOPTED
The amendment in the nature of a substitute limits the
current policy adjustment, as it applies to the 2001 and 2003
tax cuts, to tax cuts for the middle class and does not provide
for a current policy adjustment for upper income taxpayers. It
provides for the use of CBO cost estimates when such estimates
are available prior to final congressional action on
legislation, printed in the Congressional Record, and
incorporated into legislation upon enrollment. When such
estimates are not available prior to final congressional
action, provides that OMB estimates shall be used. It requires
deficit neutrality over both five and ten year periods,
mirroring House rules. It conforms emergency designation
procedures for the purposes of statutory PAYGO with emergency
designation procedures in the House rules, and does not require
a separate presidential emergency designation. Finally, it
incorporates the judicial review section from the Balanced
Budget and Emergency Deficit Control Act of 1985.
SUMMARY OF AMENDMENT IN PART B TO THE AMENDMENT IN THE NATURE OF A
SUBSTITUTE IN PART A TO BE CONSIDERED AS ADOPTED
The amendment eliminates duplicative language in the
definition of the term ``budgetary effects'' (provisions
elsewhere in the amendment in the nature of a substitute
already require that estimates be made publicly available). It
clarifies that the estimate to be included in a PAYGO Act is
the estimate submitted for printing in the Congressional
Record, before the vote on such legislation, by the chair of
the House or Senate Budget Committee. It clarifies that the
manner in which estimates should be made available
electronically by the House and Senate Budget Committees is for
such committees to post estimates on their websites. It moves
to a different section the language regarding incorporation of
estimates into legislation, and language relating to CBO's
responsibilities and to scorekeeping. Finally, it makes various
technical and conforming changes.
SUMMARY OF AMENDMENT IN THE NATURE OF A SUBSTITUTE IN PART C TO BE MADE
IN ORDER
Ryan, Paul (WI): The amendment in the nature of a
substitute would establish caps on discretionary spending from
FY2010 through FY2014 and a cap on total spending as a
percentage of gross domestic product. It would also put in
place maximum limits on deficits through 2019, again as a
percentage of gross domestic product.
PART A: TEXT OF AMENDMENT IN THE NATURE OF A SUBSTITUTE TO BE
CONSIDERED AS ADOPTED
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Statutory
Pay-As-You-Go Act of 2009''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Definitions.
Sec. 4. PAYGO estimates and PAYGO scorecards.
Sec. 5. Annual report and sequestration order.
Sec. 6. Calculating a sequestration.
Sec. 7. Current policy adjustment to the CBO estimates.
Sec. 8. Application of BBEDCA.
Sec. 9. Technical corrections.
Sec. 10. Conforming amendments.
Sec. 11. Exempt programs and activities.
SEC. 2. PURPOSE.
The purpose of this Act is to reestablish a statutory
procedure to enforce a rule of budget neutrality on new revenue
and direct spending legislation.
SEC. 3. DEFINITIONS.
As used in this Act--
(1) The term ``BBEDCA'' means the Balanced Budget and
Emergency Deficit Control Act of 1985.
(2) The definitions set forth in section 3 of the
Congressional Budget and Impoundment Control Act of
1974 and in section 250 of BBEDCA shall apply to this
Act, except to the extent that they are specifically
modified as follows:
(A) The term ``outyear'' means a fiscal year
that occurs one or more years after the budget
year.
(B) In section 250(c)(8)(C), the reference to
the food stamp program shall be deemed to be a
reference to the Supplemental Nutrition
Assistance Program.
(3) The term ``AMT'' means the Alternative Minimum
Tax for individuals under sections 55-59 of the
Internal Revenue Code of 1986, the term ``EGTRRA''
means the Economic Growth and Tax Relief Reconciliation
Act of 2001 (Public Law 107-16), and the term
``JGTRRA'' means the Jobs and Growth Tax Relief and
Reconciliation Act of 2003 (Public Law 108-27).
(4)(A) The term ``budgetary effects'' means the
amounts by which PAYGO legislation changes direct
spending or revenues relative to the baseline and shall
be determined on the basis of estimates included by
reference in the PAYGO Act or prepared under section
4(d)(3), as applicable. Such estimates shall be made
publicly available by the chairs of the Committees on
the Budget of the House of Representatives and the
Senate before final passage of such legislation or
under section 4(d)(3) if such estimates are not made
available before the final passage of such legislation.
Budgetary effects that increase direct spending or
decrease revenues are termed ``costs'' and budgetary
effects that increase revenues or decrease direct
spending are termed ``savings''.
(B) For purposes of these definitions, off-budget
effects shall be counted as budgetary effects unless
such changes flow directly from amendments to title II
of the Social Security Act and related provisions of
the Internal Revenue Code of 1986 and debt service
effects shall not be counted as budgetary effects.
(C) Solely for purposes of recording entries on a
PAYGO scorecard, provisions in appropriations Acts are
also considered to be budgetary effects for purposes of
this Act if such provisions make outyear modifications
to substantive law, except that provisions for which
the outlay effects net to zero over a period consisting
of the current year, the budget year, and the 4
subsequent years shall not be considered budgetary
effects. For purposes of this paragraph, the term,
``modifications to substantive law'' refers to changes
to or restrictions on entitlement law or other
mandatory spending contained in appropriations Acts,
notwithstanding section 250(c)(8) of BBEDCA. Provisions
in appropriations Acts that are neither outyear
modifications to substantive law nor changes in
revenues have no budgetary effects for purposes of this
Act.
(D) If a provision is designated as an emergency
requirement under this Act and is also designated as an
emergency requirement for purposes of the applicable
rules of the House of Representatives, CBO shall not
include the cost of such a provision in its estimate of
the legislation's budgetary effects.
(5) The term ``debit'' refers to the net total
amount, when positive, by which costs recorded on the
PAYGO scorecards for a fiscal year exceed savings
recorded on those scorecards for that year.
(6) The term ``entitlement law'' refers to a section
of law which provides entitlement authority.
(7) The term ``PAYGO legislation'' or a ``PAYGO Act''
refers to a bill or joint resolution that affects
direct spending or revenue relative to the baseline.
The budgetary effects of changes in revenues and
outyear modifications to substantive law included in
appropriation Acts as defined in paragraph (4) shall be
treated as if they were contained in PAYGO legislation.
(8) The term ``timing shift'' refers to a delay of
the date on which direct spending would otherwise occur
from the ninth outyear to the tenth outyear or an
acceleration of the date on which revenues would
otherwise occur from the tenth outyear to the ninth
outyear.
SEC. 4. PAYGO ESTIMATES AND PAYGO SCORECARDS.
(a) CBO Paygo Estimates.--(1) A PAYGO Act shall include by
reference an estimate of its budgetary effects as determined
under section 308(a)(3) of the Congressional Budget Act of
1974, if timely submitted. Budgetary effects that are not so
included shall be determined under section 4(d)(3).
(2)(A) Section 308(a) of the Congressional Budget Act of 1974
is amended by adding at the end the following new paragraph:
``(3) CBO paygo estimates.--Before a vote in either
House on a PAYGO Act that, if determined in the
affirmative, would clear such Act for enrollment, the
chairs of the Committees on the Budget of the House and
Senate shall request from the Director of the
Congressional Budget Office an estimate of the
budgetary effects of such Act under the Pay-As-You-Go
Act of 2009. If such an estimate is timely provided,
the chairs of the Committees on the Budget of the House
of Representative and the Senate shall cause it to be
printed in the Congressional Record under the heading
`PAYGO ESTIMATE'. As provided in section 4(a) of the
Statutory Pay-As-You-Go Act of 2009, the Clerk of the
House of Representatives or the Secretary of the
Senate, as applicable, shall incorporate an estimate
printed in the relevant portion of the Congressional
Record under this subsection into the enrollment of the
Pay-As-You-Go Act of 2009. The Director of the
Congressional Budget Office shall provide estimates
under this section in accordance with the scorekeeping
guidelines determined under section 252(d)(5) of the
Balanced Budget and Emergency Deficit Control Act of
1985. Upon agreement, the chairs of the Committees on
the Budget of the House of Representatives and the
Senate shall submit updates to such guidelines for
printing in the Congressional Record. For purposes of
this section, the Director of the Congressional Budget
Office shall not count timing shifts in his estimates
of the budgetary effects of PAYGO legislation (as
defined in section 3 of the Pay-As-You-Go Act of
2009).''.
(B) The side heading of section 308(a) of the Congressional
Budget Act of 1974 is amended by striking ``Reports on''.
(b) Publication of Estimates.--The chairs of the Committees
of Budget of the House of Representatives and the Senate shall
make publicly available electronically and in printed form the
estimates made under section 308(d) of the Congressional Budget
Act of 1974. The chairs shall also submit such estimates to be
printed in the Congressional Record before the vote on final
passage of any measure and that measure shall include by
reference an estimate of its budgetary effects.
(c) Current Policy Adjustments for Certain Legislation.--For
purposes of calculating budgetary effects under this Act, CBO
shall adjust its estimates as described below for any provision
of legislation designated as meeting the criteria in subsection
(b), (c), or (d) of section 7 and which the chairman of the
Committee on the Budget of the House of Representatives or the
Senate, as applicable, designates as meeting those criteria. A
single piece of legislation may contain provisions designated
as meeting criteria in more than one of the subsections listed
above. For appropriately designated provisions, CBO shall
exclude from its estimates for purposes of this Act any costs
of a provision to the extent that those costs, when combined
with all other excluded costs of any other previously
designated provisions of enacted legislation under the same
subsection of section 7, do not exceed the maximum applicable
current policy adjustment defined under the applicable
subsection of section 7 for the applicable 10-year period,
using the most recent baseline estimates supplied by the
Congressional Budget Office consistent with section 257 of the
Balanced Budget and Emergency Deficit Control Act of 1985 used
in considering a concurrent resolution on the budget; or, after
the beginning of a new calendar year and before consideration
of a concurrent resolution on the budget, using the most recent
baseline estimates supplied by the Congressional Budget Office
consistent with section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985. CBO estimates of
legislation containing a current policy designation under this
subsection shall include a separate presentation of costs
excluded from the calculation of budgetary effects for the
legislation, as well as an updated total of all excluded cost
of provisions within the same subsection of section 7.
(d) OMB Paygo Scorecards.--
(1) In general.--OMB shall maintain and make publicly
available a continuously updated document containing
two PAYGO scorecards displaying the budgetary effects
of PAYGO legislation as determined under subsection
(b), applying the look-back requirement in subsection
(e) and the averaging requirement in subsection (f),
and a separate addendum displaying the estimates of the
costs of provisions designated in statute as emergency
requirements.
(2) Estimates in legislation.--Except as provided in
paragraph (3), in making the calculations for the PAYGO
scorecards, OMB shall use the budgetary effects
included by reference in the applicable legislation.
(3) OMB estimates.--If legislation does not contain
the estimate of budgetary effects under paragraph (2),
then OMB shall score the budgetary effects of that
legislation upon its enactment, based on the approaches
to scorekeeping set forth in this Act.
(4) 5-year scorecard.--The first scorecard shall
display the budgetary effects of PAYGO legislation in
each year over the 5-year period beginning in the
budget year.
(5) 10-year scorecard.--The second scorecard shall
display the budgetary effects of PAYGO legislation in
each year over the 10-year period beginning in the
budget year.
(e) Look-Back to Capture Current-Year Effects.--For purposes
of this section, OMB shall treat the budgetary effects of PAYGO
legislation enacted during a session of Congress that occur
during the current year as though they occurred in the budget
year.
(f) Averaging Used to Measure Compliance Over 5-Year and 10-
Year Periods.--OMB shall cumulate the budgetary effects of a
PAYGO Act over the budget year (which includes any look-back
effects under subsection (e)) and--
(1) for purposes of the 5-year scorecard referred to
in subsection (d)(4), the four subsequent outyears,
divide that cumulative total by five, and enter the
quotient in the budget-year column and in each
subsequent column of the 5-year PAYGO scorecard; and
(2) for purposes of the 10-year scorecard referred to
in subsection (d)(5), the nine subsequent outyears,
divide that cumulative total by ten, and enter the
quotient in the budget-year column and in each
subsequent column of the 10-year PAYGO scorecard.
SEC. 5. ANNUAL REPORT AND SEQUESTRATION ORDER.
(a) Annual Report.--Not later than 14 days (excluding
weekends and holidays) after Congress adjourns to end a
session, OMB shall make publicly available and cause to be
printed in the Federal Register an annual PAYGO report. The
report shall include an up-to-date document containing the
PAYGO scorecards, a description of any current policy
adjustments made under section 4(c), information about
emergency legislation (if any) required by section 3(4)(D),
information about any sequestration if required by subsection
(b), and other data and explanations that enhance public
understanding of this Act and actions taken under it.
(b) Sequestration Order.--If the annual report issued at the
end of a session of Congress under subsection (a) shows a debit
on either PAYGO scorecard for the budget year, OMB shall
prepare and the President shall issue and include in that
report a sequestration order that, upon issuance, shall reduce
budgetary resources of direct spending programs by enough to
offset that debit as prescribed in section 6. If there is a
debit on both scorecards, the order shall fully offset the
larger of the two debits. OMB shall include that order in the
annual report and transmit it to the House of Representatives
and the Senate. If the President issues a sequestration order,
the annual report shall contain, for each budget account to be
sequestered, estimates of the baseline level of budgetary
resources subject to sequestration, the amount of budgetary
resources to be sequestered, and the outlay reductions that
will occur in the budget year and the subsequent fiscal year
because of that sequestration.
SEC. 6. CALCULATING A SEQUESTRATION.
(a) Reducing Nonexempt Budgetary Resources by a Uniform
Percentage.--OMB shall calculate the uniform percentage by
which the budgetary resources of nonexempt direct spending
programs are to be sequestered such that the outlay savings
resulting from that sequestration, as calculated under
subsection (b), shall offset the budget-year debit, if any on
the applicable PAYGO scorecard. If the uniform percentage
calculated under the prior sentence exceeds 4 percent, the
Medicare programs described in section 256(d) of BBEDCA shall
be reduced by 4 percent and the uniform percentage by which the
budgetary resources of all other nonexempt direct spending
programs are to be sequestered shall be increased, as
necessary, so that the sequestration of Medicare and of all
other nonexempt direct spending programs together produce the
required outlay savings.
(b) Outlay Savings.--In determining the amount by which a
sequestration offsets a budget-year debit, OMB shall count--
(1) the amount by which the sequestration in a crop
year of crop support payments, pursuant to section
256(j) of BBEDCA, reduces outlays in the budget year
and the subsequent fiscal year;
(2) the amount by which the sequestration of Medicare
payments in the 12-month period following the
sequestration order, pursuant to section 256(d) of
BBEDCA, reduces outlays in the budget year and the
subsequent fiscal year; and
(3) the amount by which the sequestration in the
budget year of the budgetary resources of other
nonexempt mandatory programs reduces outlays in the
budget year and in the subsequent fiscal year.
SEC. 7. CURRENT POLICY ADJUSTMENT TO THE CBO ESTIMATES.
(a) Purpose.--The purpose of this section is to provide for
adjustments of estimates of PAYGO effects for legislation
affecting four areas of the budget--
(1) payments made under section 1848 of the Social
Security Act (titled Payment for Physicians' Services);
(2) the Estate and Gift Tax under subtitle B of the
Internal Revenue Code of 1986;
(3) the AMT; and
(4) provisions of EGTRRA or JGTRRA that amended the
Internal Revenue Code of 1986 (or provisions in later
statutes further amending the amendments made by EGTRRA
or JGTRRA), other than--
(A) the provisions of those two Acts that
were made permanent by the Pension Protection
Act of 2006 (Public Law 109-280);
(B) amendments to the estate and gift tax
referred to in paragraph (2);
(C) the AMT referred to in paragraph (3);
(D) the 35 percent bracket and that portion
of the 33 percent bracket that applies to
taxable income greater than $200,000 for an
individual and $250,000 for a couple; and
(E) provisions in those two Acts relating to
taxes rates on capital gains and dividends.
(b) Medicare Payments to Physicians.--
(1) Criteria.--Legislation that includes provisions
amending or superseding the system of payments under
section 1848 of the Social Security Act shall trigger
the current policy adjustment required by this Act.
(2) Adjustment.--The amount of the maximum current
policy adjustment shall be the difference between--
(A) estimated net outlays attributable to the
payments made to physicians under that section
of the Social Security Act (as scheduled on
July 15, 2009, to be in effect); and
(B) what those net outlays would have been if
the nominal payment rates and related
parameters in effect for 2009 had been in
effect thereafter without change.
(c) Estate and Gift Tax.--
(1) Criteria.--Legislation that includes provisions
amending the Estate and Gift Tax under subtitle B of
the Internal Revenue Code of 1986 shall trigger the
current policy adjustment required by this Act.
(2) Adjustment.--The amount of the maximum current
policy adjustment shall be the difference between--
(A) total revenues projected to be collected
under the Internal Revenue Code of 1986 (as
scheduled on July 15, 2009, to be in effect);
and
(B) what those revenue collections would have
been if, on the date of enactment of the
legislation meeting the criteria in paragraph
(1), estate and gift tax law had instead been
amended so that the tax rates, nominal
exemption amounts, and related parameters in
effect for tax year 2009 had remained in effect
thereafter without change.
(d) Permanent Extension of Middle-Class Tax Cuts and AMT
Relief.--
(1) Criteria.--Legislation that includes provisions
extending middle-class tax cuts or AMT relief shall
trigger the current policy adjustment required by this
Act if those provisions extend one or more of the
following provisions--
(A) AMT relief for calendar year 2010 and
subsequent years in such a manner that the
number of AMT taxpayers is not estimated to
exceed the number of AMT taxpayers in tax year
2008 in any year through the tenth year after
enactment;
(B) the 10 percent bracket as in effect for
tax year 2010, as provided for under section
101(a) of the Economic Growth and Tax Relief
Reconciliation Act of 2001 and any later
amendments through July 15, 2009;
(C) the child tax credit as in effect for tax
year 2010, as provided for under section 201 of
the Economic Growth and Tax Relief
Reconciliation Act and any later amendments
through July 15, 2009;
(D) tax benefits for married couples as in
effect for tax year 2010, as provided for under
title III of the Economic Growth and Tax Relief
Reconciliation Act and any later amendments
through July 15, 2009;
(E) the adoption credit as in effect in tax
year 2010, as provided for under section 202 of
the Economic Growth and Tax Relief
Reconciliation Act of 2001 and any later
amendments through July 15, 2009;
(F) the dependent care credit as in effect in
tax year 2010, as provided for under section
204 of the Economic Growth and Tax Relief
Reconciliation Act of 2001 and any later
amendments through July 15, 2009;
(G) the employer-provided child care credit
as in effect in tax year 2010, as provided for
under section 205 of the Economic Growth and
Tax Relief Reconciliation Act of 2001 and any
later amendments through July 15, 2009;
(H) the education tax benefits as in effect
in tax year 2010, as provided for under title
IV of the Economic Growth and Tax Relief
Reconciliation Act of 2001 and any later
amendments through July 15, 2009;
(I) the 25 and 28 percent brackets as in
effect for tax year 2010, as provided for under
section 101(a) of the Economic Growth and Tax
Relief Reconciliation Act of 2001 and any later
amendments through July 15, 2009; and
(J) the 33 percent brackets as in effect for
tax year 2010, as provided for under section
101(a) of the Economic Growth and Tax Relief
Reconciliation Act of 2001 and any later
amendment affecting taxpayers with taxable
income of $200,000 or less for individuals and
$250,000 or less for couples in calendar year
2010 and increased in each subsequent year by
an amount equal to the cost of living
adjustment determined under section 1(f)(3) of
the Internal Revenue Code of 1986 for the
calendar year in which the taxable year begins,
determined by substituting ``calendar year
2008'' for ``calendar year 1992'' in
subparagraph (B) thereof.
(2) Adjustment.--The amount of the maximum current
policy adjustment shall be the difference between what
total revenues would have been under the Internal
Revenue Code of 1986 (as scheduled on July 15, 2009, to
be in effect) and what revenues would be if
legislation--
(A) permanently extending the AMT exemption
and brackets in effect in tax year 2009 but
increased in tax year 2010 and each subsequent
tax year as indicated under subsection
(d)(2)(B), along with any additional amount
necessary to prevent the number of taxpayers
who must pay AMT from increasing; and
(B) permanently extending the provisions
identified in section 7(a)(4),
were enacted on the same day as the legislation
referred to in paragraph (1).
SEC. 8. APPLICATION OF BBEDCA.
For purposes of this Act--
(1) notwithstanding section 275 of BBEDCA, the
provisions of sections 255, 256, 257, and 274 of
BBEDCA, as amended by this Act, shall apply to the
provisions of this Act;
(2) references in sections 255, 256, 257, and 274 to
``this part'' or ``this title'' shall be interpreted as
applying to this Act;
(3) references in sections 255, 256, 257, and 274 of
BBEDCA to ``section 254'' shall be interpreted as
referencing section 5 of this Act;
(4) the reference in section 256(b) of BBEDCA to
``section 252 or 253'' shall be interpreted as
referencing section 5 of this Act;
(5) the reference in section 256(d)(1) of BBEDCA to
``section 252 or 253'' shall be interpreted as
referencing section 6 of this Act;
(6) the reference in section 256(d)(4) of BBEDCA to
``section 252 or 253'' shall be interpreted as
referencing section 5 of this Act;
(7) section 256(k) of BBEDCA shall apply to a
sequestration, if any, under this Act; and
(8) references in section 257(e) of BBEDCA to
``section 251, 252, or 253'' shall be interpreted as
referencing section 4 of this Act.
SEC. 9. TECHNICAL CORRECTIONS.
(a) Section 250(c)(18) of BBEDCA is amended by striking ``the
expenses the Federal deposit insurance agencies'' and inserting
``the expenses of the Federal deposit insurance agencies''.
(b) Section 256(k)(1) of BBEDCA is amended by striking ``in
paragraph (5)'' and inserting ``in paragraph (6)''.
SEC. 10. CONFORMING AMENDMENTS.
(a) Section 256(a) of BBEDCA is repealed.
(b) Section 256(b) of BBEDCA is amended by striking
``origination fees under sections 438(c)(2) and 455(c) of that
Act shall each be increased by 0.50 percentage point.'' and
inserting in lieu thereof ``origination fees under sections
438(c)(2) and (6) and 455(c) and loan processing and issuance
fees under section 428(f)(1)(A)(ii) of that Act shall each be
increased by the uniform percentage specified in that
sequestration order, and, for student loans originated during
the period of the sequestration, special allowance payments
under section 438(b) of that Act accruing during the period of
the sequestration shall be reduced by the uniform percentage
specified in that sequestration order.''.
(c) Section 256(c) of BBEDCA is repealed.
(d) Section 256(d) of BBEDCA is amended--
(1) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (5), and (6);
(2) by amending paragraph (1) to read as follows:
``(1) Calculation of reduction in payment amounts.--
To achieve the total percentage reduction in those
programs required by section 252 or 253, subject to
paragraph (2), and notwithstanding section 710 of the
Social Security Act, OMB shall determine, and the
applicable Presidential order under section 254 shall
implement, the percentage reduction that shall apply,
with respect to the health insurance programs under
title XVIII of the Social Security Act--
``(A) in the case of parts A and B of such
title, to individual payments for services
furnished during the one-year period beginning
on the first day of the first month beginning
after the date the order is issued (or, if
later, the date specified in paragraph (4));
and
``(B) in the case of parts C and D, to
monthly payments under contracts under such
parts for the same one-year period;
such that the reduction made in payments under that
order shall achieve the required total percentage
reduction in those payments for that period.'';
(3) by inserting after paragraph (1) the following:
``(2) Uniform reduction rate; maximum permissible
reduction.--Reductions in payments for programs and
activities under such title XVIII pursuant to a
sequestration order under section 254 shall be at a
uniform rate, which shall not exceed 4 percent, across
all such programs and activities subject to such
order.'';
(4) by inserting after paragraph (3), as
redesignated, the following:
``(4) Timing of subsequent sequestration order.--A
sequestration order required by section 252 or 253 with
respect to programs under such title XVIII shall not
take effect until the first month beginning after the
end of the effective period of any prior sequestration
order with respect to such programs, as determined in
accordance with paragraph (1).'';
(5) in paragraph (6), as redesignated, to read as
follows:
``(6) Sequestration disregarded in computing payment
amounts.--The Secretary of Health and Human Services
shall not take into account any reductions in payment
amounts which have been or may be effected under this
part, for purposes of computing any adjustments to
payment rates under such title XVIII, specifically
including--
``(A) the part C growth percentage under
section 1853(c)(6);
``(B) the part D annual growth rate under
section 1860D-2(b)(6); and
``(C) application of risk corridors to part D
payment rates under section 1860D-15(e).''; and
(6) by adding after paragraph (6), as redesignated,
the following:
``(7) Exemptions from sequestration.--In addition to
the programs and activities specified in section 255,
the following shall be exempt from sequestration under
this part:
``(A) Part d low-income subsidies.--Premium
and cost-sharing subsidies under section 1860D-
14 of the Social Security Act.
``(B) Part d catastrophic subsidy.--Payments
under section 1860D-15(b) and (e)(2)(B) of the
Social Security Act.
``(C) Qualified individual (qi) premiums.--
Payments to States for coverage of Medicare
cost-sharing for certain low-income Medicare
beneficiaries under section 1933 of the Social
Security Act.''.
SEC. 11. EXEMPT PROGRAMS AND ACTIVITIES.
(a) Designations.--Section 255 of BBEDCA is amended by
redesignating subsection (i) as (j) and striking ``1998'' and
inserting in lieu thereof ``2010''.
(b) Social Security, Veterans Programs, Net Interest, and Tax
Credits.--Subsections (a) through (d) of section 255 of BBEDCA
are amended to read as follows
``(a) Social Security Benefits and Tier I Railroad Retirement
Benefits.--Benefits payable under the old-age, survivors, and
disability insurance program established under title II of the
Social Security Act (title 42, United States Code, section 401
et seq.), and benefits payable under section 231b(a),
231b(f)(2), 231c(a), and 231c(f) of title 45 United States
Code, shall be exempt from reduction under any order issued
under this part.
``(b) Veterans Programs.--The following program shall be
exempt from reduction under any order issued under this part--
``All programs administered by the Department of
Veterans Affairs.
``Special Benefits for Certain World War II Veterans
(28-0401-0-1-701).
``(c) Net Interest.--No reduction of payments for net
interest (all of major functional category 900) shall be made
under any order issued under this part.
``(d) Refundable Income Tax Credits.--Payments to individuals
made pursuant to provisions of the Internal Revenue Code of
1986 establishing refundable tax credits shall be exempt from
reduction under any order issued under this part.''.
(c) Other Programs and Activities, Low-Income Programs, and
Economic Recovery Programs.--Subsections (g) and (h) of section
255 of BBEDCA are amended to read as follows:
``(g) Other Programs and Activities.--
``(1)(A) The following budget accounts and activities
shall be exempt from reduction under any order issued
under this part:
``Activities resulting from private
donations, bequests, or voluntary contributions
to the Government.
``Activities financed by voluntary payments
to the Government for goods or services to be
provided for such payments.
``Administration of Territories, Northern
Mariana Islands Covenant grants (14-0412-0-1-
808).
``Advances to the Unemployment Trust Fund and
Other Funds (16-0327-0-1-600).
``Black Lung Disability Trust Fund
Refinancing (16-0329-0-1-601).
``Bonneville Power Administration Fund and
borrowing authority established pursuant to
section 13 of Public Law 93-454 (1974), as
amended (89-4045-0-3-271).
``Claims, Judgments, and Relief Acts (20-
1895-0-1-808).
``Compact of Free Association (14-0415-0-1-
808).
``Compensation of the President (11-0209-01-
1-802).
``Comptroller of the Currency, Assessment
Funds (20-8413-0-8-373).
``Continuing Fund, Southeastern Power
Administration (89-5653-0-2-271).
``Continuing Fund, Southwestern Power
Administration (89-5649-0-2-271).
``Dual Benefits Payments Account (60-0111-0-
1-601).
``Emergency Fund, Western Area Power
Administration (89-5069-0-2-271).
``Exchange Stabilization Fund (20-4444-0-3-
155).
``Federal Deposit Insurance Corporation,
Deposit Insurance Fund (51-4596-4-4-373).
``Federal Deposit Insurance Corporation,
FSLIC Resolution Fund (51-4065-0-3-373).
``Federal Deposit Insurance Corporation,
Noninterest Bearing Transaction Account
Guarantee (51-4458-0-3-373).
``Federal Deposit Insurance Corporation,
Senior Unsecured Debt Guarantee (51-4457-0-3-
373).
``Federal Housing Finance Agency,
Administrative Expenses (95-5532-0-2-371).
``Federal Payment to the District of Columbia
Judicial Retirement and Survivors Annuity Fund
(20-1713-0-1-752).
``Federal Payment to the District of Columbia
Pension Fund (20-1714-0-1-601).
``Federal Payments to the Railroad Retirement
Accounts (60-0113-0-1-601).
``Federal Reserve Bank Reimbursement Fund
(20-1884-0-1-803).
``Financial Agent Services (20-1802-0-1-803).
``Foreign Military Sales Trust Fund (11-8242-
0-7-155).
``Hazardous Waste Management, Conservation
Reserve Program (12-4336-0-3-999).
``Host Nation Support Fund for Relocation
(97-8337-0-7-051).
``Internal Revenue Collections for Puerto
Rico (20-5737-0-2-806).
``Intragovernmental funds, including those
from which the outlays are derived primarily
from resources paid in from other government
accounts, except to the extent such funds are
augmented by direct appropriations for the
fiscal year during which an order is in effect.
``Medical Facilities Guarantee and Loan Fund
(75-9931-0-3-551).
``National Credit Union Administration,
Central Liquidity Facility (25-4470-0-3-373).
``National Credit Union Administration,
Corporate Credit Union Share Guarantee Program
(25-4476-0-3-376).
``National Credit Union Administration,
Credit Union Homeowners Affordability Relief
Program (25-4473-0-3-371).
``National Credit Union Administration,
Credit Union Share Insurance Fund (25-4468-0-3-
373).
``National Credit Union Administration,
Credit Union System Investment Program (25-
4474-0-3-376).
``National Credit Union Administration,
Operating fund (25-4056-0-3-373).
``National Credit Union Administration, Share
Insurance Fund Corporate Debt Guarantee Program
(25-4469-0-3-376).
``National Credit Union Administration, U.S.
Central Federal Credit Union Capital Program
(25-4475-0-3-376).
``Office of Thrift Supervision (20-4108-0-3-
373).
``Panama Canal Commission Compensation Fund
(16-5155-0-2-602).
``Payment of Vietnam and USS Pueblo prisoner-
of-war claims within the Salaries and Expenses,
Foreign Claims Settlement account (15-0100-0-1-
153).
``Payment to Civil Service Retirement and
Disability Fund (24-0200-0-1-805).
``Payment to Department of Defense Medicare-
Eligible Retiree Health Care Fund (97-0850-0-1-
054).
``Payment to Judiciary Trust Funds (10-0941-
0-1-752).
``Payment to Military Retirement Fund (97-
0040-0-1-054).
``Payment to the Foreign Service Retirement
and Disability Fund (19-0540-0-1-153).
``Payments to Copyright Owners (03-5175-0-2-
376).
``Payments to Health Care Trust Funds (75-
0580-0-1-571).
``Payment to Radiation Exposure Compensation
Trust Fund (15-0333-0-1-054).
``Payments to Social Security Trust Funds
(28-0404-0-1-651).
``Payments to the United States Territories,
Fiscal Assistance (14-0418-0-1-806).
``Payments to trust funds from excise taxes
or other receipts properly creditable to such
trust funds.
``Payments to widows and heirs of deceased
Members of Congress (00-0215-0-1-801).
``Postal Service Fund (18-4020-0-3-372).
``Radiation Exposure Compensation Trust Fund
(15-8116-0-1-054).
``Reimbursement to Federal Reserve Banks (20-
0562-0-1-803).
``Salaries of Article III judges.
``Soldiers and Airmen's Home, payment of
claims (84-8930-0-7-705).
``Tennessee Valley Authority Fund, except
nonpower programs and activities (64-4110-0-3-
999).
``Tribal and Indian trust accounts within the
Department of the Interior which fund prior
legal obligations of the Government or which
are established pursuant to Acts of Congress
regarding Federal management of tribal real
property or other fiduciary responsibilities,
including but not limited to Tribal Special
Fund (14-5265-0-2-452), Tribal Trust Fund (14-
8030-0-7-452), White Earth Settlement (14-2204-
0-1-452), and Indian Water Rights and Habitat
Acquisition (14-5505-0-2-303).
``United Mine Workers of America 1992 Benefit
Plan (95-8260-0-7-551).
``United Mine Workers of America 1993 Benefit
Plan (95-8535-0-7-551).
``United Mine Workers of America Combined
Benefit Fund (95-8295-0-7-551).
``United States Enrichment Corporation Fund
(95-4054-0-3-271).
``Universal Service Fund (27-5183-0-2-376).
``Vaccine Injury Compensation (75-0320-0-1-
551).
``Vaccine Injury Compensation Program Trust
Fund (20-8175-0-7-551).
``(B) The following Federal retirement and disability
accounts and activities shall be exempt from reduction
under any order issued under this part:
``Black Lung Disability Trust Fund (20-8144-
0-7-601).
``Central Intelligence Agency Retirement and
Disability System Fund (56-3400-0-1-054).
``Civil Service Retirement and Disability
Fund (24-8135-0-7-602).
``Comptrollers general retirement system (05-
0107-0-1-801).
``Contributions to U.S. Park Police annuity
benefits, Other Permanent Appropriations (14-
9924-0-2-303).
``Court of Appeals for Veterans Claims
Retirement Fund (95-8290-0-7-705).
``Department of Defense Medicare-Eligible
Retiree Health Care Fund (97-5472-0-2-551).
``District of Columbia Federal Pension Fund
(20-5511-0-2-601).
``District of Columbia Judicial Retirement
and Survivors Annuity Fund (20-8212-0-7-602).
``Energy Employees Occupational Illness
Compensation Fund (16-1523-0-1-053).
``Foreign National Employees Separation Pay
(97-8165-0-7-051).
``Foreign Service National Defined
Contributions Retirement Fund (19-5497-0-2-
602).
``Foreign Service National Separation
Liability Trust Fund (19-8340-0-7-602).
``Foreign Service Retirement and Disability
Fund (19-8186-0-7-602).
``Government Payment for Annuitants,
Employees Health Benefits (24-0206-0-1-551).
``Government Payment for Annuitants, Employee
Life Insurance (24-0500-0-1-602).
``Judicial Officers' Retirement Fund (10-
8122-0-7-602).
``Judicial Survivors' Annuities Fund (10-
8110-0-7-602).
``Military Retirement Fund (97-8097-0-7-602).
``National Railroad Retirement Investment
Trust (60-8118-0-7-601).
``National Oceanic and Atmospheric
Administration retirement (13-1450-0-1-306).
``Pensions for former Presidents (47-0105-0-
1-802).
``Postal Service Retiree Health Benefits Fund
(24-5391-0-2-551).
``Public Safety Officer Benefits (15-0403-0-
1-754).
``Rail Industry Pension Fund (60-8011-0-7-
601).
``Retired Pay, Coast Guard (70-0602-0-1-403).
``Retirement Pay and Medical Benefits for
Commissioned Officers, Public Health Service
(75-0379-0-1-551).
``Special Benefits for Disabled Coal Miners
(16-0169-0-1-601).
``Special Benefits, Federal Employees'
Compensation Act (16-1521-0-1-600).
``Special Workers Compensation Expenses (16-
9971-0-7-601.)
``Tax Court Judges Survivors Annuity Fund
(23-8115-0-7-602).
``United States Court of Federal Claims
Judges' Retirement Fund (10-8124-0-7-602).
``United States Secret Service, DC Annuity
(70-0400-0-1-751).
``Voluntary Separation Incentive Fund (97-
8335-0-7-051).
``(2) Prior legal obligations of the Government in
the following budget accounts and activities shall be
exempt from any order issued under this part:
``Biomass Energy Development (20-0114-0-1-
271).
``Check Forgery Insurance Fund (20-4109-0-3-
803).
``Credit liquidating accounts.
``Credit reestimates.
``Employees Life Insurance Fund (24-8424-0-8-
602).
``Federal Aviation Insurance Revolving Fund
(69-4120-0-3-402).
``Federal Crop Insurance Corporation Fund
(12-4085-0-3-351).
``Federal Emergency Management Agency,
National Flood Insurance Fund (58-4236-0-3-
453).
``Federal Home Loan Mortgage Corporation
(Freddie Mac).
``Federal National Mortgage Corporation
(Fannie Mae).
``Geothermal resources development fund (89-
0206-0-1-271).
``Low-Rent Public Housing--Loans and Other
Expenses (86-4098-0-3-604).
``Maritime Administration, War Risk Insurance
Revolving Fund (69-4302-0-3-403).
``Natural Resource Damage Assessment Fund
(14-1618-0-1-302).
``Overseas Private Investment Corporation,
Noncredit Account (71-4184-0-3-151).
``Pension Benefit Guaranty Corporation Fund
(16-4204-0-3-601).
``San Joaquin Restoration Fund (14-5537-0-2-
301).
``Servicemembers' Group Life Insurance Fund
(36-4009-0-3-701).
``Terrorism Insurance Program (20-0123-0-1-
376).
``(h) Low-Income Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
``Academic Competitiveness/Smart Grant Program (91-
0205-0-1-502).
``Child Care Entitlement to States (75-1550-0-1-609).
``Child Enrollment Contingency Fund (75-5551-0-2-
551).
``Child Nutrition Programs (with the exception of
special milk programs) (12-3539-0-1-605).
``Children's Health Insurance Fund (75-0515-0-1-551).
``Commodity Supplemental Food Program (12-3507-0-1-
605).
``Contingency Fund (75-1522-0-1-609).
``Family Support Programs (75-1501-0-1-609).
``Federal Pell Grants under section 401 Title IV of
the Higher Education Act.
``Grants to States for Medicaid (75-0512-0-1-551).
``Payments for Foster Care and Permanency (75-1545-0-
1-609).
``Supplemental Nutrition Assistance Program (12-3505-
0-1-605).
``Supplemental Security Income Program (28-0406-0-1-
609).
``Temporary Assistance for Needy Families (75-1552-0-
1-609).''.
(d) Economic Recovery Programs.--Section 255 of BBEDCA is
amended by adding the following after subsection (h):
``(i) Economic Recovery Programs.--The following programs
shall be exempt from reduction under any order issued under
this part:
``All programs enacted in, or increases in programs
provided by, the American Recovery and Reinvestment Act
of 2009.
``Exchange Stabilization Fund-Money Market Mutual
Fund Guaranty Facility (20-4274-0-3-376).
``Financial Stabilization Reserve (20-0131-4-1-376).
``GSE Mortgage-Backed Securities Purchase Program
Account (20-0126-0-1-371).
``GSE Preferred Stock Purchase Agreements (20-0125-0-
1-371).
``Office of Financial Stability (20-0128-0-1-376).
``Special Inspector General for the Troubled Asset
Relief Program (20-0133-0-1-376).
``Troubled Asset Relief Program Account (20-0132-0-1-
376).
``Troubled Asset Relief Program Equity Purchase
Program (20-0134-0-1-376).
``Troubled Asset Relief Program, Home Affordable
Modification Program (20-0136-0-1-604).''.
----------
PART B: TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED
Page 3, lines 1 through 7, strike ``Such estimates'' and all
that follows through ``such legislation.''.
Page 4, lines 13 and 14, strike ``for purposes of'' and
insert ``under''.
Page 4, line 16, insert ``PAYGO'' before ``legislation's''.
Page 5, line 14, strike ``CBO''.
Page 5, line 17, insert ``for printing in the Congressional
Record by the chairs of the Committees on the Budget of the
House of Representatives and the Senate, as applicable, before
the vote on the PAYGO legislation'' before the period.
Page 5, line 17, after the period insert the following: ``The
Clerk of the House or the Secretary of the Senate, as
applicable, shall also incorporate by reference such estimate
printed in the relevant portion of the Congressional Record
under section 308(a)(3) of the Congressional Budget Act of 1974
into the enrollment of a PAYGO Act.''.
Page 6, line 2, insert ``, as applicable,'' after ``Senate''.
Page 6, line 5, insert ``Statutory'' before ``Pay''.
Page 6, line 8, insert ``post such estimate on their
respective committee websites and'' after ``shall''.
Page 6, line 10, strike ``As provided'' and all that follows
thereafter through ``Record.'' on line 25.
Page 7, line 4, insert ``Statutory'' before ``Pay''.
Page 7, strike lines 8 through 16 and insert the following
new subsection:
(b) Section 308 of the Congressional Budget Act of 1974 is
amended by adding at the end the following new subsection:
``(d) Scorekeeping Guidelines.--The Director of the
Congressional Budget Office shall provide estimates under this
section in accordance with the scorekeeping guidelines
determined under section 252(d)(5) of the Balanced Budget and
Emergency Deficit Control Act of 1985. Upon agreement, the
chairs of the Committees on the Budget of the House of
Representatives and the Senate shall submit updates to such
guidelines for printing in the Congressional Record.''.
Page 8, line 24, strike ``cost'' and insert ``costs''.
Page 9, line 6, strike ``subsection (b)'' and insert
``section 308 of the Congressional Budget Act of 1974''.
Page 11, lines 12 and 13, strike ``required by'' and insert
``designated under''.
Page 13, line 22, strike ``PAYGO effects'' and insert
``budgetary effects of PAYGO legislation''.
Page 19, line 20, strike ``section 7(a)(4)'' and insert
``paragraph (1)''.
----------
PART C: TEXT OF AMENDMENT IN THE NATURE OF A SUBSTITUTE TO BE MADE IN
ORDER
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Budget
Control Act of 2009''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
TITLE I--DISCRETIONARY SPENDING LIMITS
Sec. 101. Discretionary spending limits.
Sec. 102. Adjustments to discretionary spending limits.
Sec. 103. Conforming amendments.
TITLE II--TOTAL SPENDING LIMITS
Sec. 201. Total spending limits.
Sec. 202. Effective date.
TITLE III--DEFICIT LIMITS
Sec. 301. Deficit limits.
Sec. 302. Effective date.
TITLE IV--GENERAL PROVISIONS
Sec. 401. Spending reduction orders for total spending limits and
deficit limits.
Sec. 402. Enforcement procedures under the Congressional Budget Act.
Sec. 403. Definitions.
Sec. 404. Amendments to section 257 of the Balanced Budget and Emergency
Deficit Control Act of 1985.
TITLE I--DISCRETIONARY SPENDING LIMITS
SEC. 101. DISCRETIONARY SPENDING LIMITS.
Section 251(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by striking paragraphs (1)
through (13) and inserting the following new paragraphs:
``(1) For fiscal year 2010--
``(A) for the general purpose category,
$1,048,000,000,000 in new budget authority and
$1,302,000,000,000 in outlays;
``(B) for the overseas contingency operations
category, $130,000,000,000 in new budget
authority and $67,000,000,000 in outlays;
``(2) For fiscal year 2011--
``(A) for the general purpose category,
$1,058,000,000,000 in new budget authority and
$1,233,000,000,000 in outlays;
``(B) for the overseas contingency operations
category, $50,000,000,000 in new budget
authority and $70,000,000,000 in outlays;
``(3) For fiscal year 2012--
``(A) for the general purpose category,
$1,069,000,000,000 in new budget authority and
$1,171,000,000,000 in outlays;
``(B) for the overseas contingency operations
category, $50,000,000,000 in new budget
authority and $54,000,000,000 in outlays;
``(4) For fiscal year 2013--
``(A) for the general purpose category,
$1,079,000,000,000 in new budget authority and
$1,161,000,000,000 in outlays;
``(B) for the overseas contingency operations
category, $50,000,000,000 in new budget
authority and $50,000,000,000 in outlays;
``(5) For fiscal year 2014--
``(A) for the general purpose category,
$1,094,000,000,000 in new budget authority and
$1,161,000,000,000 in outlays;
``(B) for the overseas contingency operations
category, $50,000,000,000 in new budget
authority and $50,000,000,000 in outlays;''.
SEC. 102. ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.
Section 251(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
``(b) Adjustments to Discretionary Spending Limits.--
``(1) Concepts and definitions.--When the President
submits the budget under section 1105 of title 31,
United States Code, OMB shall calculate and the budget
shall include adjustments to discretionary spending
limits (and those limits as cumulatively adjusted) for
the budget year and each outyear to reflect changes in
concepts and definitions. Such changes shall equal the
baseline levels of new budget authority and outlays
using up-to-date concepts and definitions minus those
levels using the concepts and definitions in effect
before such changes. Such changes may only be made
after consultation with the Committees on
Appropriations and the Budget of the House of
Representatives and the Senate and that consultation
shall include written communication to such committees
that affords such committees the opportunity to comment
before official action is taken for such changes.
``(2) Adjustments.--
``(A) Emergency designation.--If
appropriations for discretionary accounts are
enacted that the President designates as
emergency requirements and that the Congress so
designates in statute, the adjustment shall be
the total of such appropriations in
discretionary accounts designated as emergency
requirements and the outlays flowing in all
fiscal years from such appropriations.
``(B) Overseas contingency operations
designation.--If appropriations for
discretionary accounts are enacted that the
President designates as overseas contingency
operations related to the global war on
terrorism that the Congress so designates in
statute, the adjustment shall be the total of
such appropriations in discretionary accounts
designated as overseas contingency operations
and the outlays flowing in all fiscal years
from such appropriations.
``(3) Special outlay allowance.--If, in any fiscal
year, outlays for a category exceed the discretionary
spending limit for that category but new budget
authority does not exceed its limit for that category
(after application of the first step of a spending
reduction described in subsection (a)(2), if
necessary), the adjustment in outlays for a fiscal year
is the amount of the excess but not to exceed 0.5
percent of the sum of the adjusted discretionary
spending limits on outlays for that fiscal year.''.
SEC. 103. CONFORMING AMENDMENTS.
(1) Section 275(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by
striking ``2002'' and inserting ``2019'' and by
striking ``2006'' and inserting ``2019'';
(2) Sections 254(c)(2)(A) and (f) of the Balanced
Budget and Emergency Deficit Control Act of 1985 are
amended by striking ``2002'' and inserting ``2014''.
TITLE II--TOTAL SPENDING LIMITS
SEC. 201. TOTAL SPENDING LIMITS.
Total Spending Limits.--After section 253 of the Balanced
Budget and Emergency Deficit Control Act of 1985, add the
following new section:
``SEC. 253A. ENFORCING TOTAL SPENDING LIMITS.
``(a) Projections.--
``(1) Long-term projections.--For each of at least 10
fiscal years within the guideline period:
``(A) OMB shall prepare a report of the
projected spending amount and the guideline
spending amount (as defined in section 250(c))
and include such report in the budget as
submitted by the President annually under
section 1105(a) of title 31, United States
Code.
``(B) CBO shall prepare a report of the
projected spending amount and the guideline
spending amount (as defined in section 250(c))
and include such report in the CBO annual
baseline and reestimate of the President's
budget.
``(2) Inclusion in spending reduction orders.--
Reports prepared pursuant to subsection (a) shall be
included in the spending reduction report set forth in
subsection (b).
``(b) Spending Reduction Report.--Within 15 calendar days
after Congress adjourns to end a session and on the same day as
a spending reduction order (if any) under sections 251 and
253A, but after any spending reduction required by section 251,
OMB shall issue a spending reduction report to reduce an excess
spending amount (if any).
``(c) Spending Reduction Order.--A spending reduction ordered
pursuant to subsection (b) shall be implemented using the
procedures set forth in section 256A.
``(d) Guideline Period.--The guideline period shall be as
follows:
``(1) Fiscal year 2010: 24.6 percent.
``(2) Fiscal year 2011: 23.2 percent.
``(3) Fiscal year 2012: 21.7 percent.
``(4) Fiscal year 2013: 21.7 percent.
``(5) Fiscal year 2014: 21.8 percent.
``(6) Fiscal year 2015: 21.8 percent.
``(7) Fiscal year 2016: 21.7 percent.
``(8) Fiscal year 2017: 21.7 percent.
``(9) Fiscal year 2018: 21.7 percent.
``(10) Fiscal year 2019: 21.7 percent.
``(11) Fiscal year 2020 and each subsequent fiscal
year: 21.7 percent.''.
SEC. 202. EFFECTIVE DATE.
This title shall apply to fiscal year 2010 and subsequent
fiscal years.
TITLE III--DEFICIT LIMITS
SEC. 301. DEFICIT LIMITS.
Amend section 253 of the Balanced Budget and Emergency
Deficit Control Act of 1985 to read as follows:
``SEC. 253. ENFORCING DEFICIT LIMITS.
``(a) Enforcing Deficit Limits.-- In this section, the term
`deficit limit' means an amount, as estimated by OMB, that
equals--
``(1) 8 percent of GDP for 2010;
``(2) 6 percent of GDP for 2011;
``(3) 4 percent of GDP for 2012;
``(4) 3 percent of GDP for 2013;
``(5) 3 percent of GDP for 2014;
``(6) 3 percent of GDP for 2015;
``(7) 3 percent of GDP for 2016;
``(8) 3 percent of GDP for 2017;
``(9) 3 percent of GDP for 2018; and
``(10) 3 percent of GDP for 2019.
``(b) Spending Reduction Report.--Within 15 calendar days
after Congress adjourns to end a session and on the same day as
a spending reduction order (if any) under sections 251 and
253A, but after any spending reduction required by section 251
and 253A, OMB shall issue a spending reduction report to reduce
an excess spending amount (if any).
``(c) Spending Reduction Order.--A spending reduction ordered
pursuant to subsection (b) shall be implemented using the
procedures set forth in section 256A.''
SEC. 302. EFFECTIVE DATE.
This title shall apply to fiscal year 2010 and subsequent
fiscal years through fiscal year 2019.
TITLE IV--GENERAL PROVISIONS
SEC. 401. SPENDING REDUCTION ORDERS FOR TOTAL SPENDING LIMITS AND
DEFICIT LIMITS.
The Balanced Budget and Emergency Deficit Control Act of 1985
is amended by adding after section 256 the following:
``SEC. 256A. SPENDING REDUCTION ORDERS FOR TOTAL SPENDING LIMITS AND
DEFICIT LIMITS.
``(a) Application.--A spending reduction order issued
pursuant to this part shall apply to eliminate breaches of the
limits set forth in sections 253 (deficit limits) and 253A
(total spending limits) of the Balanced Budget and Emergency
Deficit Control Act of 1985.
``(b) Spending Reduction Orders.--
``(1) Eliminating a spending excess.--OMB shall
include in its spending reduction order a requirement
that each spending account shall be reduced by an
amount of budget authority calculated by multiplying
the baseline level of budgetary resources in that
account at that time by the uniform percentage
necessary to reduce outlays sufficient to eliminate an
excess spending amount.
``(2) Exemptions.--The following shall be exempt from
reduction under any order issued under this part:
``(A) Net interest.--Payments for net
interest (set forth in function 900).
``(B) Social security.--Benefits payable
under the old-age, survivors, and disability
insurance program established under title II of
the Social Security Act.
``(C) Veterans programs.--Benefits payable by
the Department of Veterans affairs and other
programs providing benefits to veterans.
``(D) Obligated balances.--Obligated balances
of budget authority carried over from prior
fiscal years shall be exempt from reduction
under any order issued under this part.
``(E) Constitutional obligations.--Any
obligations of the Federal Government required
to be paid under the U.S. Constitution or
contractual obligations as determined by OMB
shall be exempt from reduction under any order
issued under this part.
``(F) Unemployment insurance.--Benefits
payable under unemployment insurance payments.
``(G) Emergency legislation.--Provisions of
spending legislation the President designates
as an emergency requirement and the Congress so
designates in statute.
``(H) Overseas contingency operations
designation.--Provisions of spending
legislation the President designates as
overseas contingency operations related to the
global war on terrorism and the Congress so
designates in statute.
``(I) Discretionary spending.--Discretionary
spending if the discretionary spending limits
set forth in section 251(c) are not exceeded.
``(3) Application to fast growing programs.--Any
program whose growth in the budget year is less than
the rate of inflation as determined by OMB shall be
exempt from a spending reduction issued under this
title.
``(4) Limitation on spending reductions.--No program
shall be subject to a spending reduction of more than 1
percent of its budgetary resources.
``(5) Uniform percentage.--The percentage required to
produce a spending reduction, as ordered by a spending
reduction order, shall be calculated by OMB by adding
all budgetary resources of the Government, and reducing
that amount by an amount sufficient to reduce the total
amount of outlays of the Government to equal, or lower,
a level of outlays than the amount set forth in the
guideline period.
``(6) Effect of a spending reduction order.--Upon the
issue of a spending reduction order, a spending
reduction shall be ordered for all nonexempt spending
accounts. The spending reduction shall be effective as
follows:
``(A) Budgetary resources subject to a
spending reduction to any discretionary account
shall be permanently cancelled.
``(B) The same percentage spending reduction
shall apply to all programs, projects, and
activities within a budget account (with
programs, projects, and activities as
delineated in the appropriation Act or
accompanying report for the relevant fiscal
year covering that account, or for accounts not
included in appropriation Acts, as delineated
in the most recently submitted President's
budget).
``(C) Administrative regulations implementing
a spending reduction shall be made within 120
days of the issue of a spending reduction
order.
``(D) Budgetary resources subject to a
spending reduction in revolving, trust, and
special fund accounts and offsetting
collections subject to a spending reduction in
appropriation accounts shall not be available
for obligation during the fiscal year in which
the spending reduction is issued, and shall be
available in subsequent years only to the
extent as provided by law.
``(7) Inapplicability of sections 255 and 256.--
Sections 255 and 256 shall not apply to spending
reduction orders under this section.''.
SEC. 402. ENFORCEMENT PROCEDURES UNDER THE CONGRESSIONAL BUDGET ACT.
(a) Enforcement.--Title III of the Congressional Budget Act
of 1974 is amended by adding after section 315 the following
new section:
``SEC. 316. ENFORCEMENT PROCEDURES.
``(a) Discretionary Spending Limits.--It shall not be in
order in the House of Representatives or the Senate to consider
any bill, joint resolution, amendment, or conference report
that includes any provision that would cause the discretionary
spending limits as set forth in section 251(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 to be
exceeded.
``(b) Total Spending Limits.--It shall not be in order in the
House of Representatives or the Senate to consider any bill,
joint resolution, amendment, or conference report that includes
any provision that would cause the total spending limits set
forth in section 253A of the Balanced Budget and Emergency
Deficit Control Act of 1985 to be exceeded.
``(c) Deficit Limits.--It shall not be in order in the House
of Representatives or the Senate to consider any bill, joint
resolution, amendment, or conference report that includes any
provision that would cause the total deficit limits set forth
in section 253 of the Balanced Budget and Emergency Deficit
Control Act of 1985 to be exceeded.
``(d) Waiver or Suspension.--
``(1) In the senate.--The provisions of this section
may be waived or suspended in the Senate only by the
affirmative vote of two-thirds of the Members, duly
chosen and sworn.
``(2) In the house.--The provisions of this section
may be waived or suspended in the House of
Representatives only by a rule or order proposing only
to waive such provisions by an affirmative vote of two-
thirds of the Members, duly chosen and sworn.
``(e) Point of Order Protection.--In the House, it shall not
be in order to consider a rule or order that waives the
application of paragraph (2) of subsection (c).
``(f) Motion to Suspend.--It shall not be in order for the
Speaker to entertain a motion to suspend the application of
this section under clause 1 of rule XV.''.
(b) Table of Contents.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 315 the following new item:
``Sec. 316. Enforcement procedures.''.
SEC. 403. DEFINITIONS.
Section 250(c)(4) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking paragraph
(4), redesignating the succeeding paragraphs accordingly, and
adding the following paragraphs:
``(19) The term `spending reduction' refers to the
cancellation of budgetary resources provided by
discretionary appropriations or mandatory spending.
``(20) The term `GDP', for any fiscal year, means the
gross domestic product during such fiscal year
consistent with Department of Commerce definitions.
``(21) The term `total spending' means the total
aggregate outlays of the Federal Government.
``(22) The term `guideline period' means the period
of fiscal years set forth in section 253A(d).
``(23) The term `projected spending amount' means the
amount of total outlays of the Federal Government for a
fiscal year within the guideline period.
``(24) The term `guideline spending amount' means the
amount of total outlays of the Federal Government for a
fiscal year as a percentage of GDP for such fiscal year
within the guideline period.
``(25) The term `excess spending amount' means the
amount by which a projected spending amount exceeds the
guideline spending amount for a fiscal year within the
guideline period.
``(26) The term `spending reduction order' means a
spending reduction order as defined in section 253A(c).
``(27) The term `advance appropriation' means
appropriations that first become available one fiscal
year or more beyond the fiscal year for which an
appropriation Act making such funds available is
enacted.
``(28)(A) The term `emergency requirement' means any
provision that provides new budget authority and
resulting outlays for a situation that 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) unforeseen, unpredictable, and
unanticipated; and
``(iv) not permanent, temporary in nature.
``(B) An emergency that is part of an aggregate level
of anticipated emergencies, particularly when normally
estimated in advance, is not unforeseen.''.