[House Report 112-364]
[From the U.S. Government Publishing Office]


112th Congress                                            Rept. 112-364
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1
_______________________________________________________________________

                                     


                      EXPEDITED LINE-ITEM VETO AND

                        RESCISSIONS ACT OF 2011

                               __________

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET

                        HOUSE OF REPRESENTATIVES

                              to accompany

                               H.R. 3521

                             together with

                    ADDITIONAL AND DISSENTING VIEWS




January 17, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
                        COMMITTEE ON THE BUDGET

                     PAUL RYAN, Wisconsin, Chairman
SCOTT GARRETT, New Jersey            CHRIS VAN HOLLEN, Maryland,
MICHAEL K. SIMPSON, Idaho              Ranking Minority Member
JOHN CAMPBELL, California            ALLYSON Y. SCHWARTZ, Pennsylvania
KEN CALVERT, California              MARCY KAPTUR, Ohio
W. TODD AKIN, Missouri               LLOYD DOGGETT, Texas
TOM COLE, Oklahoma                   EARL BLUMENAUER, Oregon
TOM PRICE, Georgia                   BETTY McCOLLUM, Minnesota
TOM McCLINTOCK, California           JOHN A. YARMUTH, Kentucky
JASON CHAFFETZ, Utah                 BILL PASCRELL, Jr., New Jersey
MARLIN A. STUTZMAN, Indiana          MICHAEL M. HONDA, California
JAMES LANKFORD, Oklahoma             TIM RYAN, Ohio
DIANE BLACK, Tennessee               DEBBIE WASSERMAN SCHULTZ, Florida
REID J. RIBBLE, Wisconsin            GWEN MOORE, Wisconsin
BILL FLORES, Texas                   KATHY CASTOR, Florida
MICK MULVANEY, South Carolina        HEATH SHULER, North Carolina
TIM HUELSKAMP, Kansas                PAUL TONKO, New York
TODD C. YOUNG, Indiana               KAREN BASS, California
JUSTIN AMASH, Michigan
TODD ROKITA, Indiana
FRANK C. GUINTA, New Hampshire
ROB WOODALL, Georgia

                           Professional Staff

                     Austin Smythe, Staff Director
                Thomas S. Kahn, Minority Staff Director


                            C O N T E N T S

                                                                   Page
Expedited Line-Item Veto and Rescissions Act of 2011.............     1
Introduction.....................................................     3
Summary..........................................................     3
Legislative History..............................................     4
Constitutional Issues............................................     6
Section by Section...............................................     7
Hearings.........................................................    12
Votes of the Committee...........................................    13
Committee Oversight Findings.....................................    16
Budget Act Compliance............................................    16
Performance Goals and Objectives.................................    17
Constitutional Authority Statement...............................    17
Committee Cost Estimate..........................................    17
Advisory Committee Statement.....................................    18
Applicability to the Legislative Branch..........................    18
Federal Mandates Statement.......................................    18
Advisory on Earmarks.............................................    18
Changes in Existing Law Made by the Bill as Reported.............    18
Views of Committee Members.......................................    44
Additional Views.................................................    45
Dissenting Views.................................................    46
Appendix: Legislative Text.......................................    49
                                                                       


112th Congress                                            Rept. 112-364
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
                      EXPEDITED LINE-ITEM VETO AND
                        RESCISSIONS ACT OF 2011
                                _______
                                

                January 17, 2012.--Ordered to be printed

                                _______
                                

Mr. Ryan of Wisconsin, from the Committee on the Budget, submitted the 
                               following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 3521]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Budget, to whom was referred the bill 
(H.R. 3521) to amend the Congressional Budget and Impoundment 
Control Act of 1974 to provide for a legislative line-item veto 
to expedite consideration of rescissions, and for other 
purposes, having considered the same, reports favorably thereon 
with amendments and recommends that the bill as amended do 
pass.
    The amendments (stated in terms of the page and line 
numbers of the introduced bill) are as follows:

  Page 1, line 4, insert ``Legislative'' after ``Expedited''.

  Page 2, line 4, strike ``(a) In General.--''.

  Page 2, line 7, insert ``transferred and'' before 
``redesignated''.

  Page 2, line 9, strike ``inserting'' and insert ``by 
inserting after part A''.

  Page 14, line 13, strike ``means'' and insert ``mean''.

  Page 16, strike lines 24 through 26 and insert the following:

                              ``expiration


  ``Sec. 1016.  On December 15, 2015, the amendments made by 
the Expedited Legislative Line-Item Veto and Rescissions Act of 
2011 shall be replaced by the provisions of part B of the 
Impoundment Control Act of 1974 as in effect immediately before 
the date of enactment of the Expedited Legislative Line-Item 
Veto and Rescissions Act of 2011.''.

  Page 17, line 13, insert ``Legislative'' after ``Expedited''.

  Page 17, line 17, insert ``in section 1018 (as redesignated) 
is amended'' after ``and'' the second place it appears.
                              Introduction

                              ----------                              


    The fiscal and economic challenges facing the nation are 
immense. This bipartisan legislation takes a modest step to 
strengthen the budget process by giving the President and the 
Congress a mechanism to reduce low-priority spending to reduce 
the deficit. The ``Expedited Legislative Line-Item Veto and 
Rescissions Act of 2011'' provides an important tool to 
reevaluate certain spending, while also protecting 
Congressional authority to make spending decisions. The Act 
allows the President to identify certain spending amounts 
within an appropriations bill and recommend those provisions be 
rescinded. It then expedites the consideration of a rescission 
of those particular amounts by Congress. Should Congress choose 
to rescind the spending, the reductions in spending are devoted 
to deficit reduction.

                      Summary of Proposed Changes

Presidential Rescission Proposals
    Within 45 days of the enactment of an appropriation act, 
the President may transmit a special message to Congress 
proposing to cancel an amount of discretionary budget 
authority. The President may transmit one or two special 
messages for any appropriations measure.
Congressional Procedures for Expedited Consideration
    Legislation implementing the proposed cancellations 
receives expedited consideration in both the House of 
Representatives and the Senate and provides for a vote without 
amendment.
Presidential Authority to Withhold Funds
    The President may withhold funds from obligation for up to 
45 days, pending consideration of the rescission proposals 
related to that spending.
Spending Reductions Dedicated to Deficit Reduction
    All cancellations of spending resulting from the enactment 
of an approval bill pursuant to the expedited procedures set 
forth in this Act are dedicated to deficit reduction. It 
requires the statutory discretionary spending caps to be 
adjusted downward to reflect those spending reductions. 
Committee allocations are then adjusted downwards by the same 
amount by the Chairmen of the Budget Committees to reflect 
these reductions.
Approval Bill
    The Presidential special message to Congress must contain 
certain information. It must include the dollar amount to be 
rescinded; the account, bureau, and agency from which the 
rescission occurs; and the amount of funding that would remain, 
if any. The message must also include the text of the bill 
Congress will consider to rescind the specified funding, known 
as the approval bill. The President may choose to send two 
separate messages for a single appropriations measure, but may 
not include the same rescission proposal in both messages.

                          Legislative History

    From the beginning of the Nation, Presidents deferred or 
refused to spend funds provided by Congress. The President's 
refusal to spend funds appropriated by Congress was frequently 
referred to as ``impoundments.'' As noted by Charles J. Cooper 
in testimony to the Budget Committee: ``[I]n the first 
Congress, President Washington was given discretionary spending 
authority in at least three appropriations bills to spend as 
little or as much as he pleased, up to the limit of those 
spending authorities; and the remainder that was left over, if 
he didn't spend it all, would, of course, be restored to the 
Treasury.'' (Testimony of Charles J. Cooper, June 8, 2006).
    In the 1970s, President Richard M. Nixon imposed a 
moratorium on subsidized housing programs, targeted certain 
farm programs for elimination, and suspended community 
development activities. He also vetoed the Clean Water Act, and 
although Congress overrode the veto, he subsequently impounded 
the funds to implement the Act.
    Congress responded by enacting the Impoundment Control Act 
(Title X of the Congressional Budget and Impoundment Control 
Act of 1974, or ICA). The ICA was a compromise to allow the 
President to impound funds but also provide a statutory 
framework to permit the Congress to review impoundment actions 
by the President. It permitted the President to delay the 
expenditure of funds (deferral authority) and to cancel funds 
(rescission authority). The President was required to inform 
Congress of all proposed deferrals and rescissions and to 
submit specified information, but such authority was limited 
under the Act.
    A rescission requested by the President required approval 
by both the House and the Senate within 45 days of continuous 
session or else funds were required to be made available for 
obligation.
    These presidential authorities, currently in law, are 
rarely used because the process has proved to be ineffective: 
nothing requires Congress to act. Congress can simply ignore 
presidential proposals for rescissions.
    Numerous proposals have been introduced in Congress to 
modify the rescission framework, culminating in the passage of 
``The Line Item Veto Act of 1996.''
``The Line Item Veto Act of 1996''
    Early in the 104th Congress, plans for an expanded 
rescission measure began moving forward.
    On January 4, 1995, H.R. 2, the Line Item Veto Act, was 
introduced in the House. The bill granted the President line-
item veto rescission authority. The President was authorized to 
rescind all or part of any discretionary budget authority, 
direct spending item, or any targeted tax benefit if it was 
determined that such rescission would help reduce the Federal 
budget deficit, would not impair any essential Government 
functions, and would not harm the national interest.
    It required the President to notify Congress by special 
message of a rescission or veto after enactment of an act 
providing budget authority or a revenue or reconciliation act 
containing a targeted tax benefit.
    H.R. 2, as amended, passed the House on February 6, 1995, 
by a vote of 294 ayes to 134 noes.
    The House and Senate struck a compromise implementing a 
line-item veto bill, which was signed into law on April 9, 1996 
(Public Law 104-130), with an effective date of January 1, 
1997.
    The constitutionality of the Line Item Veto Act of 1996 was 
soon challenged. The Supreme Court decided in a 6-3 decision 
(Clinton v. City of New York, 524 U.S. 417 (1998)) that a law 
permitting the President to cancel provisions of enacted law 
violated the Constitution's presentment clause (Article I, 
Section 7, Clauses 2 and 3). The Congress began a renewed 
effort to find a constitutional formulation but none of the 
proposals has been enacted into law.
``Expedited Legislative Line-Item Veto and Rescissions Act of 2011''
    H.R. 3521, the Expedited Legislative Line-Item Veto and 
Rescissions Act of 2011 was introduced by Chairman Paul Ryan 
and cosponsored by Ranking Member, Chris Van Hollen on November 
30, 2011. Under the bill the President is authorized to send to 
Congress a request for a rescission of discretionary spending 
Congress must consider.
    To cancel spending, Congress must vote to approve a joint 
resolution including provisions that rescind funds and this 
join resolution must become law before these rescissions take 
effect. The President has the authority to defer spending for 
45 days while Congress considers his recommendations. If 
Congress votes to reject the rescissions, the funding must be 
obligated.
    The bill establishes expedited procedures to accelerate 
Congressional consideration of the President's proposal. The 
President transmits proposed rescissions to Congress, and the 
majority leader or minority leader in each House introduces a 
joint resolution implementing the President's proposed 
rescissions within three days of the President's transmittal. 
The introduced bill is referred to the committee of 
jurisdiction, and must be reported without substantive change. 
(If the committee fails to act within five legislative days of 
introduction, it is discharged from consideration.)
    On the floor of both the House and the Senate, the 
resolution is highly privileged, and debate is limited to 10 
hours in the Senate and four hours in the House. A vote on 
final passage occurs within 10 days of the bill's introduction.
    The President's authority to propose rescissions applies 
only to discretionary spending.
    The President may propose to rescind dollar amounts of 
discretionary spending. This means the President may propose to 
rescind all or part of any dollar amount that is: provided 
through the annual appropriations process, as specified in an 
appropriations law; required to be allocated by an 
appropriations law despite the absence of a specific dollar 
amount in the law; or represented in a table, chart, or text in 
the committee report or joint statement of managers 
accompanying the law.

                         Constitutional Issues

    The principal doctrines to consider in examining possible 
challenges to the Expedited Legislative Line-Item Veto and 
Rescissions Act of 2011 are ``delegation of authority'' and 
``the presentment clause.'' These issues were examined in the 
challenge to the Line Item Veto Act of 1996, which was 
ultimately found unconstitutional for violating the presentment 
clause.
    The delegation doctrine maintains that broad delegations of 
authority to the administrative branch of government are 
unconstitutional. The delegation doctrine is a fundamental 
separation of powers principle that requires the legislative 
branch to make the laws.
    The presentment clause contained in Article I, section 7 of 
the Constitution requires every bill passed by the House and 
Senate (bicameral passage), before becoming law, to be 
presented to the President, and, if the President disapproves, 
to be passed again by two-thirds of the Senate and House.
    Before the 1996 Line Item Veto Act was struck down, 
President Clinton used his veto authority a total of 82 times. 
The constitutionality of the veto authority was challenged in 
Clinton v. City of New York, 524 U.S. 417 (1998). The case 
raised the question of whether or not a cancellation of an item 
of direct spending in the Balanced Budget Act of 1997, and a 
limit on a tax benefit in the Taxpayer Relief Act of 1997--both 
of which had already been enacted into law--constituted a 
violation of the Constitution's presentment clause. The Court 
determined that the actions of the President prevented one 
section of the Balanced Budget Act of 1997, and one section of 
the Taxpayer Relief Act of 1997, from having legal force and 
effect. From the Court's perspective, the President had amended 
two acts of Congress by repealing a portion of each, and 
``repeal of statutes, no less than enactment, must conform with 
Article I,'' INS v. Chadha, 462 U.S. 919, 954, 103 S.Ct. 2764, 
2785-2786.
    The Court emphasized that, to conform to presentment 
clause, the statutory repeals must conform to the ``single, 
finely wrought and exhaustively considered, procedure'' for 
enacting a law. The Court determined that the cancellation 
procedures of the Line Item Veto Act did not conform to the 
tenets of the presentment clause and that nothing in the 
Constitution authorized the President to amend or repeal a 
statute, or portions of a statute, unilaterally.

    Delegation of Powers. The Expedited Legislative Line-Item 
Veto and Rescissions Act of 2011 may engage the delegation 
concept: the direct influence in the legislative process given 
to the executive branch.
    The President, by the terms of the Constitution, is not 
formally involved in the legislative process. However, the line 
between legislative and executive is not a clear one: The 
President may sign legislation or veto it, causing additional 
Congressional action to override that veto. The Vice President 
presides over the Senate, and, under certain unusual 
circumstances, votes. The President proposes legislation often 
and submits a budget--as required by Congress--on an annual 
basis.
    The question is whether this Act provides the President an 
undue amount of influence in the legislative process. In this 
case, the President is allowed to provide to the Congress a 
proposed list of legislative items in an enacted bill that the 
President believes should be reconsidered. This Act would not 
permit the President to repeal any duly-enacted statute nor 
would it force any congressional outcome. The bill provides 
rules to ensure consideration of this limited category of the 
President's proposals on the floor of the House or the Senate, 
and the Congress is free to reject the President's proposal.

    Presentment Clause. The Expedited Legislative Line-Item 
Veto and Rescissions Act of 2011 is specifically designed to 
avoid violating the presentment clause. With the 1996 Line Item 
Veto Act, that clause, as delineated in the Court case 
previously cited, was violated because a duly enacted statute 
was effectively being amended by the President without 
congressional approval. This Act would only allow the President 
to propose that a particular amount be rescinded--the President 
cannot rescind funding unilaterally. To invalidate budgetary 
resources under this Act requires an act of Congress and the 
assent of the President, the same as any other law enacted 
pursuant to the Constitution of the United States.

                           Section by Section

Section 1. Short Title
    This section provides for the short title of the Act: 
``Expedited Legislative Line-Item Veto and Rescissions Act of 
2011.''
Section 2. Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitations
    This section amends Title X of the Congressional Budget Act 
of 1974 by--
    - Striking Part B (except for sections 1015, 1016, and 1013 
which are redesignated as sections 1017, 1018, and 1019);
    - Striking Part C; and
    - Inserting the following new sections:

                    SEC. 1011. PROPOSED RESCISSIONS

    Subsection (a) provides that within 45 days of enactment of 
any bill or joint resolution the President may propose (in the 
manner provided below) the rescission of all or part of any 
amount of funding.
    Subsection (b) requires any rescission to be transmitted in 
a special message to Congress pursuant to the specifications 
below:
    - Packaging of Requested Rescissions. The President may 
submit up to two packages of rescissions per appropriations 
bill, or any other appropriations measure (omnibus, 
supplemental, or continuing resolution). The President is 
prohibited from including the same rescission in both packages 
and the rescissions can only apply to funding contained in that 
legislation.
    - Transmittal. The President must deliver each message 
requesting a package of rescissions to the Secretary of the 
Senate if the Senate is not in session and to the Clerk of the 
House of Representatives if the House is not in session. The 
transmittal message must also be publicly available.
    - Contents of Special Message. This special message must 
specify--
          - The dollar amount to be rescinded;
          - The agency, bureau, and account from which the 
        rescission shall occur;
          - The program, project, or activity within the 
        account; the amount of funding, if any, that would 
        remain for the account, program, project, or activity;
          - The reasons for the rescission; the estimated 
        fiscal, economic, and budgetary effects of the 
        rescission; and
          - The facts surrounding the consideration of the 
        rescission in the special message. If a second special 
        message is transmitted there must be an explanation of 
        why the proposed rescissions differ from the first 
        package of rescissions.
    The special message must also designate each separate 
rescission by number and include legislative text for an 
``Approval Bill'', as defined under section 1015, to accomplish 
the rescission. The special message may not include any changes 
to existing law beyond the rescission of funds in the relevant 
appropriations measure.

         SEC. 1012. PRESIDENTIAL AUTHORITY TO WITHHOLD FUNDING

    If the President proposes a rescission of funding, the 
President may (subject to the time limits below) temporarily 
withhold funding from obligation but only once per proposed 
rescission (except as provided in section 1019). The President 
may withhold until the earliest of: the day on which the 
President determines the continued withholding no longer 
advances the purpose of the approval bill; the 45th day 
following the date of enactment of the appropriations measure; 
or the last day the President determines that the purpose of 
the funding could not be accomplished before the authority to 
spend the funds would expire.
    All rescinded funds must go towards reducing the deficit. 
No later than five days after the enactment of an approval 
bill, the chairs of the Budget Committee in the House and 
Senate must revise the allocations and aggregates as well as 
other appropriate levels under the concurrent resolution on the 
budget. In addition, the Appropriations Committee must report 
revised sub allocations pursuant to section 302 (b) of the 
Congressional Budget Act.
    After enactment of an approval bill the President must 
revise applicable limits under the Balanced Budget and 
Emergency Deficit Control Act of 1985 by the amount of the 
rescission to dedicate the savings to deficit reduction.

                   SEC. 1013. EXPEDITED CONSIDERATION

    A special message received by Congress is referred to the 
Budget and Appropriations Committees in the House and Senate.
    The majority or minority leader introduces an approval bill 
within 3 days, or if the House is not in session, the next day 
of session. If an approval bill is not introduced, then any 
member of the House may introduce one and that measure receives 
privileged treatment.
    Under the Act, only the Appropriations Committee has 
jurisdiction over an approval bill, it must report the approval 
bill without amendment favorably, unfavorably, or without 
recommendation, no later than the fifth day after the referral. 
If the committee fails to report, the bill is automatically 
discharged.
    As soon as practicable after referral, the Congressional 
Budget Office prepares for the Appropriations and Budget 
Committees an estimate of the reduction in budget authority and 
outlays caused by the approval bill.
    Within three days after an approval bill is reported or 
discharged in the House, it shall be in order for any Member to 
announce the intention to move to proceed to consider the 
approval bill. The motion to proceed is in order only during a 
time designated by the Speaker within the legislative schedule 
for the next two days. The motion to proceed is not in order if 
the House disposes of a prior motion to proceed on the bill.
    The previous question is considered as ordered without an 
intervening motion, and a motion to reconsider the vote by 
which the motion to proceed is disposed of shall not be in 
order. If the motion to proceed is agreed to, the House shall 
immediately consider the approval bill without intervening 
motion and the bill will remain the unfinished business of the 
House until disposed of.
    The approval bill is considered as read and all points of 
order against the approval bill or its consideration are 
waived. The previous question shall be considered as ordered. 
Debate on the approval bill is limited to 4 hours, equally 
divided. A motion to reconsider shall not be in order.
    An approval bill received in the Senate is referred to the 
Committee on Appropriations. The committee must report the bill 
without amendment, favorably, unfavorably, or without 
recommendation, but not later than five days after the 
referral.
    On the following day, three subsequent days, or the next 
day of session (if the Senate is not in session) it shall be in 
order for any Senator to move to proceed to consider. The 
motion is non-debatable and the motion to reconsider is deemed 
to have been laid on the table. The motion is not in order 
after the Senate has disposed of a prior motion to proceed with 
respect to the approval bill. If a motion to proceed is agreed 
to, the Senate shall immediately proceed to consideration 
without an intervening motion. The motion shall remain the 
unfinished business until disposed of. Consideration in the 
Senate on the approval bill is limited to 10 hours, equally 
divided; a motion to further limit debate is not debatable. All 
points of order are waived and any debatable motion or appeal 
shall be limited to not more than one hour of debate equally 
divided. A motion to recommit or reconsider the vote is not in 
order.
    No amendments are in order during the consideration of the 
approval bill.

                  SEC. 1014. TREATMENT OF RESCISSIONS

    Rescissions proposed by the President only take effect upon 
enactment an approval bill. If the approval bill isn't enacted 
within 45 days from the enactment of the appropriations act, it 
is no longer eligible for expedited consideration.

                         SEC. 1015. DEFINITIONS

    Paragraph (1): Appropriation Measure. The term 
``appropriation measure'' means an Act referred to in section 
105 of title 1, United States Code, including any general or 
special appropriation Act, supplemental, deficiency, or 
continuing appropriations, signed into law.
    Paragraph (2): Approval Bill. The term ``approval bill'' 
means a bill that only approves rescissions of funding in a 
special message transmitted by the President and--
          (A) The title of the approval bill is as follows: ``A 
        bill approving the proposed rescissions transmitted by 
        the President on ___,'' the blank space being filled in 
        with the date of transmission of the relevant special 
        message and the public law number to which it relates; 
        and
          (B) Which provides only the following after the 
        enacting clause: ``That the Congress approves the 
        proposed rescissions ___,'' the blank space being 
        filled in with the list of the rescissions contained in 
        the President's special message, ``as transmitted by 
        the President in a special message on,'' the blank 
        space being filled in with the appropriate date, 
        ``regarding ___,'' the blank space being filled in with 
        the public law number to which the special message 
        relates.
    Paragraph (3): Day. The term ``day'' means a standard 24-
hour period beginning at midnight and excluding Sundays, legal 
holidays, and any other day during which neither chamber of 
Congress is in session.
    Paragraph (4): Rescind or Rescission. The terms ``rescind 
or rescission'' mean to permanently cancel or prevent budgetary 
resources, including budget authority or obligation limitation, 
from having force or effect.
    Paragraph (5): Congressional Budget Office. The term 
``CBO'' means the Director of the Congressional Budget Office.
    Paragraph (6): Comptroller General. The term means the 
Comptroller General of the United States.
    Paragraph (7): Deferral of Budget Authority. The term 
includes--
          (A) Withholding or delaying the obligations or 
        expenditure of budget authority (whether by 
        establishing reserves or otherwise) provided for 
        projects or activities; or
          (B) Any other type of Executive action or inaction 
        which effectively precludes the obligation or 
        expenditure of budget authority, including authority to 
        obligate by contract in advance of appropriations as 
        specifically authorized by law.
    Paragraph (8): Funding.
          (A) Except as described in subparagraph (B), the term 
        ``funding'' means all or part of the dollar amount of 
        budget authority or obligation limit--
                  (i) Specified in an appropriation measure, or 
                the dollar amount of budget authority or 
                obligation limit required to be allocated by a 
                specific proviso in an appropriation measure 
                for which a specific dollar figure was not 
                included;
                  (ii) Represented separately in any table, 
                chart, or explanatory text included in the 
                statement of managers or the governing 
                committee report accompanying such law; or
                  (iii) Represented by the product of the 
                estimated procurement cost and the total 
                quantity of items specified in an appropriation 
                measure or included in the statement of 
                managers or the governing committee report 
                accompanying such law.
          (B) Funding does not include--
                  (i) Direct spending;
                  (ii) Budget authority in an appropriation 
                measure that funds direct spending provided for 
                in other law;
                  (iii) Any existing budget authority cancelled 
                in an appropriation measure; or
                  (iv) Any restriction or condition in an 
                appropriation measure or the accompanying 
                statement of managers or committee reports on 
                the expenditure of budget authority for an 
                account, program, project, or activity or on 
                activities involving such expenditure. This 
                provision is designed to preclude the President 
                from proposing provisions in appropriations 
                laws that limit or prevent the President from 
                spending funds on a certain activity. This 
                provision is not intended to cover a 
                restriction or condition that would force the 
                President to spend funds in the relevant 
                appropriations measure on a particular program, 
                project, or activity. Under the bill, those 
                funds would be eligible for rescission under 
                the procedures of this Act.
    Paragraph (9): Withhold. The term ``withhold'' applies to 
any executive action or inaction that precludes the obligation 
of funding at a time when it would otherwise have been 
available to an agency for obligation. The term does not 
include administrative preparatory actions undertaken prior to 
obligation in the normal course of implementing budget laws.

                         SEC. 1016. EXPIRATION

    The Expedited Legislative Line-Item Veto and Rescissions 
Act of 2011 expires on December 31, 2015, and is replaced by 
Part B of the Impoundment Control Act as in effect prior to the 
enactment of these amendments.
Section 3. Technical and Conforming Amendments
    Subsection (a) makes certain technical amendments to 
Section 904 of the Congressional Budget Act of 1974.
    Subsection (b) sets out certain clerical amendments and 
redesignates certain sections of the Congressional Budget Act 
of 1974. The subsection also revises the table of contents set 
forth in section 1(b) of the Congressional Budget Act of 1974 
as follows:

    Part B--Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitation

Sec. 1011. Congressional consideration of proposed rescissions and 
        deferrals of budget authority and obligation limitations
Sec. 1012. Grants of and limitations on presidential authority.
Sec. 1013. Procedures for expedited consideration.
Sec. 1014. Treatment of rescissions.
Sec. 1015. Definitions.
Sec. 1016. Expiration.
Sec. 1017. Reports by Comptroller General.
Sec. 1018. Suits by Comptroller General.
Sec. 1019. Proposed deferrals of budget authority.

Section. 4. Approval Measures Considered

    The section amends Section 314 of the Congressional Budget 
Act of 1974 requiring that, whenever an approval bill passes 
the House, the Budget Committee must immediately reduce the 
applicable allocations under 302(a) of the Congressional Budget 
Act of 1974 by the amount of the rescission.

                                Hearings

    In 2006, the House Budget Committee held two hearings to 
discuss the application and constitutionality of the line-item 
veto.
    The first hearing, Line-Item Veto--Perspectives on 
Applications and Effects was held on May 25, 2006. Patrick J. 
Toomey (Club for Growth), Thomas A. Schatz (Citizens Against 
Government Waste), Edward Lorenzen (Concord Coalition) and 
James R. Horney (Center on Budget and Policy Priorities) 
testified.
    The second hearing, Line-Item Veto--Constitutional Issues 
was held on June 6, 2006. Charles J. Cooper (Cooper & Kirk, 
PLLC), Viet D. Dinh (Georgetown Law Center), and Louis Fischer 
(Library of Congress) testified.
    In 2008, the House Budget Committee held a hearing on 
budget process reform proposals. The hearing, Budget Reform 
Proposals for the 111th Congress, was held on September 25, 
2008. Maya MacGuineas (Committee for a Responsible Federal 
Budget), Richard Kogan (Center on Budget and Policy Priorities) 
and Dr. C. Eugene Steuerle (Peter G. Peterson Foundation) 
testified.
    In 2010, the House Budget Committee held a hearing on the 
President's expedited rescission proposal. The hearing, the 
Administration's Expedited Rescission Proposal, was held on 
June 17, 2010. Jeffrey Liebman (Office of Management and 
Budget) testified.
    In 2011, the House Budget Committee held two budget process 
reform hearings to examine the budget process.
    The first hearing, the Broken Budget Process: Perspectives 
From Former CBO Directors, was held on September 21, 2011, with 
former CBO Directors Rudolph Penner and Alice Rivlin 
testifying.
    The second hearing, the Broken Budget Process: Perspectives 
From Budget Experts, was held on September 22, 2011, with 
Philip Joyce (University of Maryland), the Honorable Jim Nussle 
(Chairman of the Committee on the Budget, 2001 through 2007, 
United States House of Representatives) and the Honorable Phil 
Gramm (former United States Senator, 1985-2002) testifying.

                         Votes of the Committee

    Clause 3(b) of House Rule XIII requires each committee 
report to accompany any bill or resolution of a public 
character to include the total number of votes cast for and 
against each roll call vote, on a motion to report and any 
amendments offered to the measure or matter, together with the 
names of those voting for and against.
    Listed below are the actions taken in the Committee on the 
Budget of the House of Representatives on the Expedited 
Legislative Line-Item Veto and Rescissions Act of 2011.
    On December 15, 2011, the committee met in open session, a 
quorum being present.
    Chairman Ryan asked unanimous consent to be authorized, 
consistent with clause 4 of House Rule XVI, to declare a recess 
at any time during the committee meeting.
    There was no objection to the unanimous consent request.
    Chairman Ryan asked unanimous consent to dispense with the 
first reading of the bill and the bill be considered as read 
and open to amendment at any point.
    There was no objection to the unanimous consent request.
    The committee adopted and ordered reported the Expedited 
Legislative Line-Item Veto and Rescissions Act of 2011.
    The committee took the following votes:

Amendment Offered by Mr. Van Hollen

    1. This amendment made technical changes to H.R. 3521 by 
inserting the word ``Legislative'' into the title and providing 
that the Expedited Legislative Line-Item Veto and Rescissions 
Act of 2011 is replaced by Part B of the Impoundment Control 
Act upon expiration on December 31, 2015.
    The amendment was agreed to by voice vote.

Amendment Offered by Mr. Simpson

    2. This amendment provided for the inclusion of 
cancellation of targeted tax benefits and items of direct 
spending along with the rescission of discretionary budget 
authority.
    The amendment was not agreed to by a roll call vote of 9 
ayes and 24 noes.

                               VOTE NO. 2
------------------------------------------------------------------------
 Name &                      Answer    Name &                    Answer
 State     Aye       No     Present     State     Aye     No     Present
------------------------------------------------------------------------
RYAN                 X                VAN                  X
 (WI)                                  HOLLEN
 (Chair                                (MD)
 man)                                  (Rankin
                                       g)
------------------------------------------------------------------------
GARRETT              X                SCHWARTZ
 (NJ)                                  (PA)
------------------------------------------------------------------------
SIMPSON     X                         KAPTUR       X
 (ID)                                  (OH)
------------------------------------------------------------------------
CAMPBEL                               DOGGETT      X
 L (CA)                                (TX)
------------------------------------------------------------------------
CALVERT     X                         BLUMENAU
 (CA)                                  ER (OR)
------------------------------------------------------------------------
AKIN        X                         McCOLLUM     X
 (MO)                                  (MN)
------------------------------------------------------------------------
COLE        X                         YARMUTH      X
 (OK)                                  (KY)
------------------------------------------------------------------------
PRICE                X                PASCRELL     X
 (GA)                                  (NJ)
------------------------------------------------------------------------
McCLINT              X                HONDA                X
 OCK                                   (CA)
 (CA)
------------------------------------------------------------------------
CHAFFET              X                RYAN                 X
 Z (UT)                                (OH)
------------------------------------------------------------------------
STUTZMA              X                WASSERMA             X
 N (IN)                                N
                                       SCHULTZ
                                       (FL)
------------------------------------------------------------------------
LANKFOR              X                MOORE                X
 D (OK)                                (WI)
------------------------------------------------------------------------
BLACK                X                CASTOR
 (TN)                                  (FL)
------------------------------------------------------------------------
RIBBLE               X                SHULER
 (WI)                                  (NC)
------------------------------------------------------------------------
FLORES               X                TONKO                X
 (TX)                                  (NY)
------------------------------------------------------------------------
MULVANE              X                BASS                 X
 Y (SC)                                (CA)
------------------------------------------------------------------------
HUELSKA              X                ........
 MP
 (KS)
------------------------------------------------------------------------
YOUNG                X                ........
 (IN)
------------------------------------------------------------------------
AMASH                X     .........
 (MI)
------------------------------------------------------------------------
ROKITA               X     .........
 (IN)
------------------------------------------------------------------------
GUINTA               X     .........
 (NH)
------------------------------------------------------------------------
WOODALL              X
 (GA)
------------------------------------------------------------------------

Amendment Offered by Ms. McCollum

    3. This amendment provided for the inclusion of 
cancellation of targeted tax benefits along with the rescission 
of discretionary budget authority.
    The amendment was not agreed to by a roll call vote of 9 
ayes and 26 noes.

                               VOTE NO. 3
------------------------------------------------------------------------
 Name &                      Answer    Name &                    Answer
 State     Aye       No     Present     State     Aye     No     Present
------------------------------------------------------------------------
RYAN                 X                VAN                  X
 (WI)                                  HOLLEN
 (Chair                                (MD)
 man)                                  (Rankin
                                       g)
------------------------------------------------------------------------
GARRETT              X                SCHWARTZ
 (NJ)                                  (PA)
------------------------------------------------------------------------
SIMPSON     X                         KAPTUR       X
 (ID)                                  (OH)
------------------------------------------------------------------------
CAMPBEL                               DOGGETT      X
 L (CA)                                (TX)
------------------------------------------------------------------------
CALVERT     X                         BLUMENAU
 (CA)                                  ER (OR)
------------------------------------------------------------------------
AKIN     .......     X                McCOLLUM     X
 (MO)                                  (MN)
------------------------------------------------------------------------
COLE        X                         YARMUTH      X
 (OK)                                  (KY)
------------------------------------------------------------------------
PRICE                X                PASCRELL     X
 (GA)                                  (NJ)
------------------------------------------------------------------------
McCLINT              X                HONDA        X
 OCK                                   (CA)
 (CA)
------------------------------------------------------------------------
CHAFFET              X                RYAN                 X
 Z (UT)                                (OH)
------------------------------------------------------------------------
STUTZMA              X                WASSERMA             X
 N (IN)                                N
                                       SCHULTZ
                                       (FL)
------------------------------------------------------------------------
LANKFOR              X                MOORE                X
 D (OK)                                (WI)
------------------------------------------------------------------------
BLACK                X                CASTOR
 (TN)                                  (FL)
------------------------------------------------------------------------
RIBBLE               X                SHULER               X
 (WI)                                  (NC)
------------------------------------------------------------------------
FLORES               X                TONKO                X
 (TX)                                  (NY)
------------------------------------------------------------------------
MULVANE              X                BASS                 X
 Y (SC)                                (CA)
------------------------------------------------------------------------
HUELSKA              X                ........
 MP
 (KS)
------------------------------------------------------------------------
YOUNG                X                ........
 (IN)
------------------------------------------------------------------------
AMASH                X     .........
 (MI)
------------------------------------------------------------------------
ROKITA               X     .........
 (IN)
------------------------------------------------------------------------
GUINTA               X     .........
 (NH)
------------------------------------------------------------------------
WOODALL              X
 (GA)
------------------------------------------------------------------------

    4. Mr. Garrett made a motion that the committee report the 
bill as amended and that the bill do pass.
    The motion was agreed to by a roll call vote of 23 ayes and 
13 noes.

                               VOTE NO. 4
------------------------------------------------------------------------
 Name &                      Answer    Name &                    Answer
 State     Aye       No     Present     State     Aye     No     Present
------------------------------------------------------------------------
RYAN        X                         VAN          X
 (WI)                                  HOLLEN
 (Chair                                (MD)
 man)                                  (Rankin
                                       g)
------------------------------------------------------------------------
GARRETT     X                         SCHWARTZ     X
 (NJ)                                  (PA)
------------------------------------------------------------------------
SIMPSON              X                KAPTUR               X
 (ID)                                  (OH)
------------------------------------------------------------------------
CAMPBEL                               DOGGETT      X
 L (CA)                                (TX)
------------------------------------------------------------------------
CALVERT              X                BLUMENAU     X
 (CA)                                  ER (OR)
------------------------------------------------------------------------
AKIN        X                         McCOLLUM             X
 (MO)                                  (MN)
------------------------------------------------------------------------
COLE                 X                YARMUTH              X
 (OK)                                  (KY)
------------------------------------------------------------------------
PRICE       X                         PASCRELL             X
 (GA)                                  (NJ)
------------------------------------------------------------------------
McCLINT     X                         HONDA                X
 OCK                                   (CA)
 (CA)
------------------------------------------------------------------------
CHAFFET     X                         RYAN                 X
 Z (UT)                                (OH)
------------------------------------------------------------------------
STUTZMA     X                         WASSERMA             X
 N (IN)                                N
                                       SCHULTZ
                                       (FL)
------------------------------------------------------------------------
LANKFOR     X                         MOORE                X
 D (OK)                                (WI)
------------------------------------------------------------------------
BLACK       X                         CASTOR
 (TN)                                  (FL)
------------------------------------------------------------------------
RIBBLE      X                         SHULER       X
 (WI)                                  (NC)
------------------------------------------------------------------------
FLORES      X                         TONKO                X
 (TX)                                  (NY)
------------------------------------------------------------------------
MULVANE     X                         BASS         X
 Y (SC)                                (CA)
------------------------------------------------------------------------
HUELSKA     X                         ........
 MP
 (KS)
------------------------------------------------------------------------
YOUNG       X                         ........
 (IN)
------------------------------------------------------------------------
AMASH                X                ........
 (MI)
------------------------------------------------------------------------
ROKITA      X                         ........
 (IN)
------------------------------------------------------------------------
GUINTA      X                         ........
 (NH)
------------------------------------------------------------------------
WOODALL     X
 (GA)
------------------------------------------------------------------------

    Mr. Garrett made a motion that, pursuant to clause 1 of 
rule XXII, the Chairman be authorized to offer such motions as 
may be necessary in the House to go to conference with the 
Senate, and staff be authorized to make any necessary technical 
and conforming changes to the bill.
    The motion was agreed to without objection.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee on the Budget's 
oversight findings and recommendations are reflected in the 
body of this report.

                         Budget Act Compliance

    The provisions of clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives and section 308(a)(1) of the 
Congressional Budget Act of 1974 (relating to estimates of new 
budget authority, new spending authority, new credit authority, 
or increased or decreased revenues or tax expenditures) are not 
considered applicable. The estimate and comparison required to 
be prepared by the Director of the Congressional Budget Office 
under clause 3(c)(3) of rule XIII of the Rules of the House of 
Representatives and sections 402 and 423 of the Congressional 
Budget Act of 1974 submitted to the committee prior to the 
filing of this report are as follows:

                                                 December 16, 2011.
Hon. Paul Ryan, Chairman,
Committee on the Budget, U.S. House of Representatives, Washington, DC 
        20515.
    Dear Mr. Chairman: The Congressional Budget Office has prepared the 
enclosed cost estimate for H.R. 3521, the Expedited Line-Item Veto and 
Rescissions Act of 2011.
    If you wish further details on this estimate, we will be pleased to 
provide them. The CBO staff contact is Jared Brewster, who can be 
reached at 226-2880.
            Sincerely,
                                      Douglas W. Elmendorf.

Enclosure.
h.r. 3521--expedited legislative line-item veto and rescissions act of 
                                  2011

 (As ordered reported by the House Committee on the Budget on December 
                               15, 2011)

    H.R. 3521 would establish an expedited procedure for considering 
Presidential proposals to rescind certain spending provisions in newly 
enacted legislation. CBO estimates that enacting H.R. 3521, by itself, 
would not have a significant impact on the federal budget. Any impact 
on the budget would depend on the extent of the President's use of the 
new cancellation procedure and on future Congressional actions. 
Enacting H.R. 3521 would not affect direct spending or revenues; 
therefore, pay-as-you-go procedures do not apply.
    The bill would establish a procedure for the President to propose 
cancelling specified discretionary funding and for Congressional 
consideration of such proposals. Under that procedure, which would be 
available until December 31, 2015, the President would transmit a 
special message to both houses of Congress specifying the project or 
government functions involved, the reasons for the proposed 
rescissions, and--to the extent practicable--the estimated fiscal, 
economic, and budgetary effect of the action. The Congress could then 
approve or disapprove the President's proposals in legislation. If 
approved, any such proposed cancellations would become law and the caps 
on discretionary budget authority would be reduced.
    Under H.R. 3521, the President could submit up to two special 
messages for each piece of legislation that provides funding, but could 
not include the same rescission in both messages. A message would have 
to be transmitted to Congress within 45 calendar days of enactment of 
the legislation containing the items proposed for cancellation. Within 
five days of receiving a special message, the majority leaders of the 
House of Representatives and the Senate (or their designees) would be 
required to introduce a bill to approve the proposed cancellations; 
that approval bill would be considered under expedited procedures. H.R. 
3521 also would amend the Congressional Budget Act of 1974 to require 
that CBO prepare an estimate of reductions in budget authority and 
outlays that would result from any proposed cancellations. 
Additionally, the President could withhold discretionary budget 
authority proposed for cancellation for 45 days from the day on which a 
special message is transmitted.
    The impact of H.R. 3521 on future legislation would depend on both 
the nature of such legislation and on the actions of the President and 
the Congress in implementing the expedited cancellation procedure in 
H.R. 3521. Therefore, this bill would not--by itself--have a 
significant impact on the federal budget. CBO estimates that any 
additional administrative costs for implementing H.R. 3521 would not be 
significant because both the executive branch and the Congress already 
carry out activities similar to those that would be involved in 
preparing and responding to Presidential budget proposals.
    H.R. 3521 contains no intergovernmental or private-sector mandates, 
as defined in the Unfunded Mandates Reform Act and--by itself--would 
have no impact on the budgets of state, local, or tribal governments. 
Any budgetary effects would depend on subsequent legislative action.
    The CBO staff contact for this estimate is Jared Brewster, who can 
be reached at 226-2880. The estimate was approved Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
provide both the President and the Congress improved tools to 
reconsider spending.

                   Constitutional Authority Statement

    Pursuant to clause 7 of rule XII of the Rules of the House 
of Representatives, the committee finds the constitutional 
authority for this legislation in Article I, section 9, clause 
7.

                        Committee Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the committee report incorporates the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to sections 402 and 423 of the 
Congressional Budget Act of 1974.

                      Advisory Committee Statement

    No advisory committee within the meaning of section 5(b) of 
the Federal Advisory Committee Act was created by this 
legislation.

                Applicability to the Legislative Branch

    The committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

                       Federal Mandates Statement

    The committee adopted the estimate of Federal mandates 
prepared by the Director of the Congressional Budget Office 
pursuant to section 423 of the Unfunded Mandates Reform Act 
(Public Law 104-4).

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 3521 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

        CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974


                    SHORT TITLES; TABLE OF CONTENTS

  Section 1. (a) Short Titles.--This Act may be cited as the 
``Congressional Budget and Impoundment Control Act of 1974''. 
Titles I through IX may be cited as the ``Congressional Budget 
Act of 1974''. Parts A and B of title X may be cited as the 
``Impoundment Control Act of 1974''. [Part C of title X may be 
cited as the ``Line Item Veto Act of 1996''.] Sections 1011 
through 1016 of part B of title X may be cited as the 
``Expedited Legislative Line-Item Veto and Rescissions Act of 
2011''.
  (b) Table of Contents.--

Sec. 1. Short titles; table of contents.
     * * * * * * *

                      TITLE X--IMPOUNDMENT CONTROL

                       Part A--General Provisions

Sec. 1001. Disclaimer.
     * * * * * * *

     [Part B--Congressional Consideration of Proposed Rescissions, 
             Reservations, and Deferrals of Budget Authority

[Sec. 1011. Definitions.
[Sec. 1012. Rescission of budget authority.
[Sec. 1013. Proposed deferrals of budget authority.
[Sec. 1014. Transmission of messages; publication.
[Sec. 1015. Reports by Comptroller General.
[Sec. 1016. Suits by Comptroller General.
[Sec. 1017. Procedure in House and Senate.

                         [Part C--Line Item Veto

[Sec. 1021. Line item veto authority.
[Sec. 1022. Special messages.
[Sec. 1023. Cancellation effective unless disapproved.
[Sec. 1024. Deficit reduction.
[Sec. 1025. Expedited congressional consideration of disapproval bills.
[Sec. 1026. Definitions.
[Sec. 1027. Identification of limited tax benefits.]

    Part B--Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitations

Sec. 1011. Congressional consideration of proposed rescissions and 
          deferrals of budget authority and obligation limitations.
Sec. 1012. Grants of and limitations on presidential authority.
Sec. 1013. Procedures for expedited consideration.
Sec. 1014. Treatment of rescissions.
Sec. 1015. Definitions.
Sec. 1016. Expiration.
Sec. 1017. Reports by Comptroller General.
Sec. 1018. Suits by Comptroller General.
Sec. 1019. Proposed deferrals of budget authority.

           *       *       *       *       *       *       *


TITLE X--IMPOUNDMENT CONTROL

           *       *       *       *       *       *       *


     [Part B--Congressional Consideration of Proposed Rescissions, 
            Reservations, and Deferrals of Budget Authority

                              [DEFINITIONS

  [Sec. 1011. For purposes of this part--
          [(1) ``deferral of budget authority'' includes--
                  [(A) withholding or delaying the obligations 
                or expenditure of budget authority (whether by 
                establishing reserves or otherwise) provided 
                for projects or activities; or
                  [(B) any other type of Executive action or 
                inaction which effectively precludes the 
                obligation or expenditure of budget authority, 
                including authority to obligate by contract in 
                advance of appropriations as specifically 
                authorized by law;
          [(2) ``Comptroller General'' means the Comptroller 
        General of the United States;
          [(3) ``rescission bill'' means a bill or joint 
        resolution which only recinds in whole or in part, 
        budget authority proposed to be rescinded in a special 
        message transmitted by the President under section 
        1012, and upon which the Congress completes action 
        before the end of the first period of 45 calendar days 
        of continuous session of the Congress after the date on 
        which the President's message is received by the 
        Congress;
          [(4) ``impoundment resolution'' means a resolution of 
        the House of Representatives or the Senate which only 
        expresses its disapproval of a proposed deferral of 
        budget authority set forth in a special message 
        transmitted by the President under section 1013; and
          [(5) continuity of a session of the Congress shall be 
        considered as broken only by an adjournment of the 
        Congress sine die, and the days on which either House 
        is not in session because of an adjournment of more 
        than 3 days to a day certain shall be excluded in the 
        computation of the 45-day period referred to in 
        paragraph (3) of this section and in section 1012, and 
        the 25-day periods referred to in sections 1016 and 
        1017(b)(1). If a special message is transmitted under 
        section 1012 during any Congress and the last session 
        of such Congress adjourns sine die before the 
        expiration of 45 calendar days of continuous session 
        (or a special message is so transmitted after the last 
        session of the Congress adjourns sine die), the message 
        shall be deemed to have been retransmitted on the first 
        day of the succeeding Congress and the 45-day period 
        referred to in paragraph (3) of this section and 
        section 1012 (with respect to such message) shall 
        commence on the day after such first day.

                    [RESCISSION OF BUDGET AUTHORITY

  [Sec. 1012. (a) Transmittal of Special Message.--Whenever the 
President determines that all or part of any budget authority 
will not be required to carry out the full objectives or scope 
of programs for which it is provided or that such budget 
authority should be rescinded for fiscal policy or other 
reasons (including the determination of authorized projects or 
activities for which budget authority has been provided), or 
whenever all or part of budget authority provided for only one 
fiscal year is to be reserved from obligation for such fiscal 
year, the President shall transmit to both Houses of Congress a 
special message specifying--
          [(1) the amount of budget authority which he proposes 
        to be rescinded or which is to be so reserved;
          [(2) any account, department, or establishment of the 
        Government to which such budget authority is available 
        for obligation, and the specific project or 
        governmental functions involved;
          [(3) the reasons why the budget authority should be 
        rescinded or is to be so reserved;
          [(4) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary effect of the proposed 
        rescission or of the reservation; and
          [(5) all facts, circumstances, and considerations 
        relating to or bearing upon the proposed rescission or 
        the reservation and the decision to effect the proposed 
        rescission or the reservation, and to the maximum 
        extent practicable, the estimated effect of the 
        proposed rescission or the reservation upon the 
        objects, purposes, and programs for which the budget 
        authority is provided.
  [(b) Requirement To Make Available for Obligation.--Any 
amount of budget authority proposed to be rescinded or that is 
to be reserved as set forth in such special message shall be 
made available for obligation unless, within the prescribed 45-
day period, the Congress has completed action on a rescission 
bill rescinding all or part of the amount proposed to be 
rescinded or that is to be reserved. Funds made available for 
obligation under this procedure may not be proposed for 
rescission again.

                 [TRANSMISSION OF MESSAGES; PUBLICATION

  [Sec. 1014. (a) Delivery to House and Senate.--Each special 
message transmitted under section 1012 or 1013 shall be 
transmitted to the House of Representatives and the Senate on 
the same day, and shall be delivered to the Clerk of the House 
of Representatives if the House is not in session, and to the 
Secretary of the Senate if the Senate is not in session. Each 
special message so transmitted shall be referred to the 
appropriate committee of the House of Representatives and the 
Senate. Each such message shall be printed as a document of 
each House.
  [(b) Delivery to Comptroller General.--A copy of each special 
message transmitted under section 1012 or 1013 shall be 
transmitted to the Comptroller General on the same day it is 
transmitted to the House of Representatives and the Senate. In 
order to assist the Congress in the exercise of its functions 
under sections 1012 and 1013, the Comptroller General shall 
review each such message and inform the House of 
Representatives and the Senate as promptly as practicable with 
respect to__
          [(1) in the case of a special message transmitted 
        under section 1012, the facts surrounding the proposed 
        rescission or the reservation of budget authority 
        (including the probable effects thereof); and
          [(2) in the case of a special message transmitted 
        under section 1013, (A) the facts surrounding each 
        proposed deferral of budget authority (including the 
        probable effects thereof) and (B) whether or not (or to 
        what extent), in his judgment, such proposed deferral 
        is in accordance with existing statutory authority.
  [(c) Transmission of Supplementary Messages.--If any 
information contained in a special message transmitted under 
section 1012 or 1013 is subsequently revised, the President 
shall transmit to both Houses of Congress and the Comptroller 
General a supplementary message stating and explaining such 
revision. Any such supplementary message shall be delivered, 
referred, and printed as provided in subsection (a). The 
Comptroller General shall promptly notify the House of 
Representatives and the Senate of any change in the information 
submitted by him under subsection (b) which may be necessitated 
by such revision.
  [(d) Printing in Federal Register.--Any special message 
transmitted under section 1012 or 1013, and any supplementary 
message transmitted under subsection (c), shall be printed in 
the first issue of the Federal Register published after such 
transmittal.
  [(e) Cumulative Reports of Proposed Rescissions, 
Reservations, and Deferrals of Budget Authority.--
          [(1) The President shall submit a report to the House 
        of Representatives and the Senate, not later than the 
        10th day of each month during a fiscal year, listing 
        all budget authority for that fiscal year with respect 
        to which, as of the first day of such month--
                  [(A) he has transmitted a special message 
                under section 1012 with respect to a proposed 
                rescission or a reservation; and
                  [(B) he has transmitted a special message 
                under section 1013 proposing a deferral.
        Such report shall also contain, with respect to each 
        such proposed rescission or deferral, or each such 
        reservation, the information required to be submitted 
        in the special message with respect thereto under 
        section 1012 or 1013.
          [(2) Each report submitted under paragraph (1) shall 
        be printed in the first issue of the Federal Register 
        published after its submission.

           *       *       *       *       *       *       *


                     [PROCEDURE IN HOUSE AND SENATE

  [Sec. 1017. (a) Referral.--Any rescission bill introduced 
with respect to a special message or impoundment resolution 
introduced with respect to a proposed deferral of budget 
authority shall be referred to the appropriate committee of the 
House of Representatives or the Senate, as the case may be.
  [(b) Discharge of Committee.--
          [(1) If the committee to which a rescission bill or 
        impoundment resolution has been referred has not 
        reported it at the end of 25 calendar days of 
        continuous session of the Congress after its 
        introduction, it is in order to move either to 
        discharge the committee from further consideration of 
        the bill or resolution or to discharge the committee 
        from further consideration of any other rescission bill 
        with respect to the same special message or impoundment 
        resolution with respect to the same proposed deferral, 
        as the case may be, which has been referred to the 
        committee.
          [(2) A motion to discharge may be made only by an 
        individual favoring the bill or resolution, may be made 
        only if supported by one-fifth of the Members of the 
        House involved (a quorum being present), and is highly 
        privileged in the House and privileged in the Senate 
        (except that it may not be made after the committee has 
        reported a bill or resolution with respect to the same 
        special message or the same proposed deferral, as the 
        case may be); and debate thereon shall be limited to 
        not more than 1 hour, the time to be divided in the 
        House equally between those favoring and those opposing 
        the bill or resolution, and to be divided in the Senate 
        equally between, and controlled by, the majority leader 
        and the minority leader or their designees. An 
        amendment to the motion is not in order, and it is not 
        in order to move to reconsider the vote by which the 
        motion is agreed to or disagreed to.
  [(c) Floor Consideration in the House.--
          [(1) When the committee of the House of 
        Representatives has reported, or has been discharged 
        from further consideration of a rescission bill or 
        impoundment resolution, it shall at any time thereafter 
        be in order (even though a previous motion to the same 
        effect has been disagreed to) to move to proceed to the 
        consideration of the bill or resolution. The motion 
        shall be highly privileged and not debatable. An 
        amendment to the motion shall not be in order, nor 
        shall it be in order to move to reconsider the vote by 
        which the motion is agreed to or disagreed to.
          [(2) Debate on a rescission bill or impoundment 
        resolution shall be limited to not more than 2 hours, 
        which shall be divided equally between those favoring 
        and those opposing the bill or resolution. A motion 
        further to limit debate shall not be debatable. In the 
        case of an impoundment resolution, no amendment to, or 
        motion to recommit, the resolution shall be in order. 
        It shall not be in order to move to reconsider the vote 
        by which a rescission bill or impoundment resolution is 
        agreed to or disagreed to.
          [(3) Motions to postpone, made with respect to the 
        consideration of a rescission bill or impoundment 
        resolution, and motions to proceed to the consideration 
        of other business, shall be decided without debate.
          [(4) All appeals from the decisions of the Chair 
        relating to the application of the Rules of the House 
        of Representatives to the procedure relating to any 
        rescission bill or impoundment resolution shall be 
        decided without debate.
          [(5) Except to the extent specifically provided in 
        the preceding provisions of this subsection, 
        consideration of any rescission bill or impoundment 
        resolution and amendments thereto (or any conference 
        report thereon) shall be governed by the Rules of the 
        House of Representatives applicable to other bills and 
        resolutions, amendments, and conference reports in 
        similar circumstances.
  [(d) Floor Consideration in the Senate.--
          [(1) Debate in the Senate on any rescission bill or 
        impoundment resolution, and all amendments thereto (in 
        the case of a rescission bill) and debatable motions 
        and appeals in connection therewith, shall be limited 
        to not more than 10 hours. The time shall be equally 
        divided between, and controlled by, the majority leader 
        and the minority leader or their designees.
          [(2) Debate in the Senate on any amendment to a 
        rescission bill shall be limited to 2 hours, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the bill. Debate on any amendment to 
        an amendment, to such a bill, and debate on any 
        debatable motion or appeal in connection with such a 
        bill or an impoundment resolution shall be limited to 1 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the bill or resolution, 
        except that in the event the manager of the bill or 
        resolution is in favor in any such amendment, motion, 
        or appeal, the time in opposition thereto, shall be 
        controlled by the minority leader or his designee. No 
        amendment that is not germane to the provisions of a 
        rescission bill shall be received. Such leaders, or 
        either of them, may, from the time under their control 
        on the passage of a rescission bill or impoundment 
        resolution, allot additional time to any Senator during 
        the consideration of any amendment, debatable motion, 
        or appeal.
          [(3) A motion to further limit debate is not 
        debatable. In the case of a rescission bill, a motion 
        to recommit (except a motion to recommit with 
        instructions to report back within a specified number 
        of days, not to exceed 3, not counting any day on which 
        the Senate is not in session) is not in order. Debate 
        on any such motion to recommit shall be limited to one 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the concurrent resolution. 
        In the case of an impoundment resolution, no amendment 
        or motion to recommit is in order.
          [(4) The conference report on any rescission bill 
        shall be in order in the Senate at any time after the 
        third day (excluding Saturdays, Sundays, and legal 
        holidays) following the day on which such a conference 
        report is reported and is available to Members of the 
        Senate. A motion to proceed to the consideration of the 
        conference report may be made even though a previous 
        motion to the same effect has been disagreed to.
          [(5) During the consideration in the Senate of the 
        conference report on any rescission bill, debate shall 
        be limited to 2 hours, to be equally divided between, 
        and controlled by, the majority leader and minority 
        leader or their designees. Debate on any debatable 
        motion or appeal related to the conference report shall 
        be limited to 30 minutes, to be equally divided 
        between, and controlled by, the mover and the manager 
        of the conference report.
          [(6) Should the conference report be defeated, debate 
        on any request for a new conference and the appointment 
        of conferees shall be limited to one hour, to be 
        equally divided, between, and controlled by, the 
        manager of the conference report and the minority 
        leader or his designee, and should any motion be made 
        to instruct the conferees before the conferees are 
        named, debate on such motion shall be limited to 30 
        minutes, to be equally divided between, and controlled 
        by, the mover and the manager of the conference report. 
        Debate on any amendment to any such instructions shall 
        be limited to 20 minutes, to be equally divided 
        between, and controlled by the mover and the manager of 
        the conference report. In all cases when the manager of 
        the conference report is in favor of any motion, 
        appeal, or amendment, the time in opposition shall be 
        under the control of the minority leader or his 
        designee.
          [(7) In any case in which there are amendments in 
        disagreement, time on each amendment shall be limited 
        to 30 minutes, to be equally divided between, and 
        controlled by, the manager of the conference report and 
        the minority leader or his designee. No amendment that 
        is not germane to the provisions of such amendments 
        shall be received.

                        [Part C--Line Item Veto

                       [LINE ITEM VETO AUTHORITY

  [Sec. 1021. (a) In General.--Notwithstanding the provisions 
of parts A and B, and subject to the provisions of this part, 
the President may, with respect to any bill or joint resolution 
that has been signed into law pursuant to Article I, section 7, 
of the Constitution of the United States, cancel in whole--
          [(1) any dollar amount of discretionary budget 
        authority;
          [(2) any item of new direct spending; or
          [(3) any limited tax benefit;
if the President--
          [(A) determines that such cancellation will--
                  [(i) reduce the Federal budget deficit;
                  [(ii) not impair any essential Government 
                functions; and
                  [(iii) not harm the national interest; and
          [(B) notifies the Congress of such cancellation by 
        transmitting a special message, in accordance with 
        section 1022, within five calendar days (excluding 
        Sundays) after the enactment of the law providing the 
        dollar amount of discretionary budget authority, item 
        of new direct spending, or limited tax benefit that was 
        canceled.
  [(b) Identification of Cancellations.--In identifying dollar 
amounts of discretionary budget authority, items of new direct 
spending, and limited tax benefits for cancellation, the 
President shall--
          [(1) consider the legislative history, construction, 
        and purposes of the law which contains such dollar 
        amounts, items, or benefits;
          [(2) consider any specific sources of information 
        referenced in such law or, in the absence of specific 
        sources of information, the best available information; 
        and
          [(3) use the definitions contained in section 1026 in 
        applying this part to the specific provisions of such 
        law.
  [(c) Exception for Disapproval Bills.--The authority granted 
by subsection (a) shall not apply to any dollar amount of 
discretionary budget authority, item of new direct spending, or 
limited tax benefit contained in any law that is a disapproval 
bill as defined in section 1026.

                           [SPECIAL MESSAGES

  [Sec. 1022. (a) In General.--For each law from which a 
cancellation has been made under this part, the President shall 
transmit a single special message to the Congress.
  [(b) Contents.--
          [(1) The special message shall specify--
                  [(A) the dollar amount of discretionary 
                budget authority, item of new direct spending, 
                or limited tax benefit which has been canceled, 
                and provide a corresponding reference number 
                for each cancellation;
                  [(B) the determinations required under 
                section 1021(a), together with any supporting 
                material;
                  [(C) the reasons for the cancellation;
                  [(D) to the maximum extent practicable, the 
                estimated fiscal, economic, and budgetary 
                effect of the cancellation;
                  [(E) all facts, circumstances and 
                considerations relating to or bearing upon the 
                cancellation, and to the maximum extent 
                practicable, the estimated effect of the 
                cancellation upon the objects, purposes and 
                programs for which the canceled authority was 
                provided; and
                  [(F) include the adjustments that will be 
                made pursuant to section 1024 to the 
                discretionary spending limits under section 
                251(c) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 and an evaluation 
                of the effects of those adjustments upon the 
                sequestration procedures of section 251 of the 
                Balanced Budget and Emergency Deficit Control 
                Act of 1985.
          [(2) In the case of a cancellation of any dollar 
        amount of discretionary budget authority or item of new 
        direct spending, the special message shall also 
        include, if applicable--
                  [(A) any account, department, or 
                establishment of the Government for which such 
                budget authority was to have been available for 
                obligation and the specific project or 
                governmental functions involved;
                  [(B) the specific States and congressional 
                districts, if any, affected by the 
                cancellation; and
                  [(C) the total number of cancellations 
                imposed during the current session of Congress 
                on States and congressional districts 
                identified in subparagraph (B).
  [(c) Transmission of Special Messages to House and Senate.--
          [(1) The President shall transmit to the Congress 
        each special message under this part within five 
        calendar days (excluding Sundays) after enactment of 
        the law to which the cancellation applies. Each special 
        message shall be transmitted to the House of 
        Representatives and the Senate on the same calendar 
        day. Such special message shall be delivered to the 
        Clerk of the House of Representatives if the House is 
        not in session, and to the Secretary of the Senate if 
        the Senate is not in session.
          [(2) Any special message transmitted under this part 
        shall be printed in the first issue of the Federal 
        Register published after such transmittal.

               [CANCELLATION EFFECTIVE UNLESS DISAPPROVED

  [Sec. 1023. (a) In General.--The cancellation of any dollar 
amount of discretionary budget authority, item of new direct 
spending, or limited tax benefit shall take effect upon receipt 
in the House of Representatives and the Senate of the special 
message notifying the Congress of the cancellation. If a 
disapproval bill for such special message is enacted into law, 
then all cancellations disapproved in that law shall be null 
and void and any such dollar amount of discretionary budget 
authority, item of new direct spending, or limited tax benefit 
shall be effective as of the original date provided in the law 
to which the cancellation applied.
  [(b) Commensurate Reductions in Discretionary Budget 
Authority.--Upon the cancellation of a dollar amount of 
discretionary budget authority under subsection (a), the total 
appropriation for each relevant account of which that dollar 
amount is a part shall be simultaneously reduced by the dollar 
amount of that cancellation.

                           [DEFICIT REDUCTION

  [Sec. 1024. (a) In General.--
          [(1) Discretionary budget authority.--OMB shall, for 
        each dollar amount of discretionary budget authority 
        and for each item of new direct spending canceled from 
        an appropriation law under section 1021(a)--
                  [(A) reflect the reduction that results from 
                such cancellation in the estimates required by 
                section 251(a)(7) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 in 
                accordance with that Act, including an estimate 
                of the reduction of the budget authority and 
                the reduction in outlays flowing from such 
                reduction of budget authority for each outyear; 
                and
                  [(B) include a reduction to the discretionary 
                spending limits for budget authority and 
                outlays in accordance with the Balanced Budget 
                and Emergency Deficit Control Act of 1985 for 
                each applicable fiscal year set forth in 
                section 251(c) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 by 
                amounts equal to the amounts for each fiscal 
                year estimated pursuant to subparagraph (A).
          [(2) Direct spending and limited tax benefits.--(A) 
        OMB shall, for each item of new direct spending or 
        limited tax benefit canceled from a law under section 
        1021(a), estimate the deficit decrease caused by the 
        cancellation of such item or benefit in that law and 
        include such estimate as a separate entry in the report 
        prepared pursuant to section 252(d) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.
          [(B) OMB shall not include any change in the deficit 
        resulting from a cancellation of any item of new direct 
        spending or limited tax benefit, or the enactment of a 
        disapproval bill for any such cancellation, under this 
        part in the estimates and reports required by sections 
        252(b) and 254 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.
  [(b) Adjustments to Spending Limits.--After ten calendar days 
(excluding Sundays) after the expiration of the time period in 
section 1025(b)(1) for expedited congressional consideration of 
a disapproval bill for a special message containing a 
cancellation of discretionary budget authority, OMB shall make 
the reduction included in subsection (a)(1)(B) as part of the 
next sequester report required by section 254 of the Balanced 
Budget and Emergency Deficit Control Act of 1985.
  [(c) Exception.--Subsection (b) shall not apply to a 
cancellation if a disapproval bill or other law that 
disapproves that cancellation is enacted into law prior to 10 
calendar days (excluding Sundays) after the expiration of the 
time period set forth in section 1025(b)(1).
  [(d) Congressional Budget Office Estimates.--As soon as 
practicable after the President makes a cancellation from a law 
under section 1021(a), the Director of the Congressional Budget 
Office shall provide the Committees on the Budget of the House 
of Representatives and the Senate with an estimate of the 
reduction of the budget authority and the reduction in outlays 
flowing from such reduction of budget authority for each 
outyear.

      [EXPEDITED CONGRESSIONAL CONSIDERATION OF DISAPPROVAL BILLS

  [Sec. 1025. (a) Receipt and Referral of Special Message.--
Each special message transmitted under this part shall be 
referred to the Committee on the Budget and the appropriate 
committee or committees of the Senate and the Committee on the 
Budget and the appropriate committee or committees of the House 
of Representatives. Each such message shall be printed as a 
document of the House of Representatives.
  [(b) Time Period for Expedited Procedures.--
          [(1) There shall be a congressional review period of 
        30 calendar days of session, beginning on the first 
        calendar day of session after the date on which the 
        special message is received in the House of 
        Representatives and the Senate, during which the 
        procedures contained in this section shall apply to 
        both Houses of Congress.
          [(2) In the House of Representatives the procedures 
        set forth in this section shall not apply after the end 
        of the period described in paragraph (1).
          [(3) If Congress adjourns at the end of a Congress 
        prior to the expiration of the period described in 
        paragraph (1) and a disapproval bill was then pending 
        in either House of Congress or a committee thereof 
        (including a conference committee of the two Houses of 
        Congress), or was pending before the President, a 
        disapproval bill for the same special message may be 
        introduced within the first five calendar days of 
        session of the next Congress and shall be treated as a 
        disapproval bill under this part, and the time period 
        described in paragraph (1) shall commence on the day of 
        introduction of that disapproval bill.
  [(c) Introduction of Disapproval Bills.--(1) In order for a 
disapproval bill to be considered under the procedures set 
forth in this section, the bill must meet the definition of a 
disapproval bill and must be introduced no later than the fifth 
calendar day of session following the beginning of the period 
described in subsection (b)(1).
  [(2) In the case of a disapproval bill introduced in the 
House of Representatives, such bill shall include in the first 
blank space referred to in section 1026(6)(C) a list of the 
reference numbers for all cancellations made by the President 
in the special message to which such disapproval bill relates.
  [(d) Consideration in the House of Representatives.--(1) Any 
committee of the House of Representatives to which a 
disapproval bill is referred shall report it without amendment, 
and with or without recommendation, not later than the seventh 
calendar day of session after the date of its introduction. If 
any committee fails to report the bill within that period, it 
is in order to move that the House discharge the committee from 
further consideration of the bill, except that such a motion 
may not be made after the committee has reported a disapproval 
bill with respect to the same special message. A motion to 
discharge may be made only by a Member favoring the bill (but 
only at a time or place designated by the Speaker in the 
legislative schedule of the day after the calendar day on which 
the Member offering the motion announces to the House his 
intention to do so and the form of the motion). The motion is 
highly privileged. Debate thereon shall be limited to not more 
than one hour, the time to be divided in the House equally 
between a proponent and an opponent. The previous question 
shall be considered as ordered on the motion to its adoption 
without intervening motion. A motion to reconsider the vote by 
which the motion is agreed to or disagreed to shall not be in 
order.
  [(2) After a disapproval bill is reported or a committee has 
been discharged from further consideration, it is in order to 
move that the House resolve into the Committee of the Whole 
House on the State of the Union for consideration of the bill. 
If reported and the report has been available for at least one 
calendar day, all points of order against the bill and against 
consideration of the bill are waived. If discharged, all points 
of order against the bill and against consideration of the bill 
are waived. The motion is highly privileged. A motion to 
reconsider the vote by which the motion is agreed to or 
disagreed to shall not be in order. During consideration of the 
bill in the Committee of the Whole, the first reading of the 
bill shall be dispensed with. General debate shall proceed, 
shall be confined to the bill, and shall not exceed one hour 
equally divided and controlled by a proponent and an opponent 
of the bill. The bill shall be considered as read for amendment 
under the five-minute rule. Only one motion to rise shall be in 
order, except if offered by the manager. No amendment to the 
bill is in order, except any Member if supported by 49 other 
Members (a quorum being present) may offer an amendment 
striking the reference number or numbers of a cancellation or 
cancellations from the bill. Consideration of the bill for 
amendment shall not exceed one hour excluding time for recorded 
votes and quorum calls. No amendment shall be subject to 
further amendment, except pro forma amendments for the purposes 
of debate only. At the conclusion of the consideration of the 
bill for amendment, the Committee shall rise and report the 
bill to the House with such amendments as may have been 
adopted. The previous question shall be considered as ordered 
on the bill and amendments thereto to final passage without 
intervening motion. A motion to reconsider the vote on passage 
of the bill shall not be in order.
  [(3) Appeals from decisions of the Chair regarding 
application of the rules of the House of Representatives to the 
procedure relating to a disapproval bill shall be decided 
without debate.
  [(4) It shall not be in order to consider under this 
subsection more than one disapproval bill for the same special 
message except for consideration of a similar Senate bill 
(unless the House has already rejected a disapproval bill for 
the same special message) or more than one motion to discharge 
described in paragraph (1) with respect to a disapproval bill 
for that special message.
  [(e) Consideration in the Senate.--
          [(1) Referral and reporting.--Any disapproval bill 
        introduced in the Senate shall be referred to the 
        appropriate committee or committees. A committee to 
        which a disapproval bill has been referred shall report 
        the bill not later than the seventh day of session 
        following the date of introduction of that bill. If any 
        committee fails to report the bill within that period, 
        that committee shall be automatically discharged from 
        further consideration of the bill and the bill shall be 
        placed on the Calendar.
          [(2) Disapproval bill from house.--When the Senate 
        receives from the House of Representatives a 
        disapproval bill, such bill shall not be referred to 
        committee and shall be placed on the Calendar.
          [(3) Consideration of single disapproval bill.--After 
        the Senate has proceeded to the consideration of a 
        disapproval bill for a special message, then no other 
        disapproval bill originating in that same House 
        relating to that same message shall be subject to the 
        procedures set forth in this subsection.
          [(4) Amendments.--
                  [(A) Amendments in order.--The only 
                amendments in order to a disapproval bill are--
                          [(i) an amendment that strikes the 
                        reference number of a cancellation from 
                        the disapproval bill; and
                          [(ii) an amendment that only inserts 
                        the reference number of a cancellation 
                        included in the special message to 
                        which the disapproval bill relates that 
                        is not already contained in such bill.
                  [(B) Waiver or appeal.--An affirmative vote 
                of three-fifths of the Senators, duly chosen 
                and sworn, shall be required in the Senate--
                          [(i) to waive or suspend this 
                        paragraph; or
                          [(ii) to sustain an appeal of the 
                        ruling of the Chair on a point of order 
                        raised under this paragraph.
          [(5) Motion nondebatable.--A motion to proceed to 
        consideration of a disapproval bill under this 
        subsection shall not be debatable. It shall not be in 
        order to move to reconsider the vote by which the 
        motion to proceed was adopted or rejected, although 
        subsequent motions to proceed may be made under this 
        paragraph.
          [(6) Limit on consideration.--(A) After no more than 
        10 hours of consideration of a disapproval bill, the 
        Senate shall proceed, without intervening action or 
        debate (except as permitted under paragraph (9)), to 
        vote on the final disposition thereof to the exclusion 
        of all amendments not then pending and to the exclusion 
        of all motions, except a motion to reconsider or to 
        table.
          [(B) A single motion to extend the time for 
        consideration under subparagraph (A) for no more than 
        an additional five hours is in order prior to the 
        expiration of such time and shall be decided without 
        debate.
          [(C) The time for debate on the disapproval bill 
        shall be equally divided between the Majority Leader 
        and the Minority Leader or their designees.
          [(7) Debate on amendments.--Debate on any amendment 
        to a disapproval bill shall be limited to one hour, 
        equally divided and controlled by the Senator proposing 
        the amendment and the majority manager, unless the 
        majority manager is in favor of the amendment, in which 
        case the minority manager shall be in control of the 
        time in opposition.
          [(8) No motion to recommit.--A motion to recommit a 
        disapproval bill shall not be in order.
          [(9) Disposition of senate disapproval bill.--If the 
        Senate has read for the third time a disapproval bill 
        that originated in the Senate, then it shall be in 
        order at any time thereafter to move to proceed to the 
        consideration of a disapproval bill for the same 
        special message received from the House of 
        Representatives and placed on the Calendar pursuant to 
        paragraph (2), strike all after the enacting clause, 
        substitute the text of the Senate disapproval bill, 
        agree to the Senate amendment, and vote on final 
        disposition of the House disapproval bill, all without 
        any intervening action or debate.
          [(10) Consideration of house message.--Consideration 
        in the Senate of all motions, amendments, or appeals 
        necessary to dispose of a message from the House of 
        Representatives on a disapproval bill shall be limited 
        to not more than four hours. Debate on each motion or 
        amendment shall be limited to 30 minutes. Debate on any 
        appeal or point of order that is submitted in 
        connection with the disposition of the House message 
        shall be limited to 20 minutes. Any time for debate 
        shall be equally divided and controlled by the 
        proponent and the majority manager, unless the majority 
        manager is a proponent of the motion, amendment, 
        appeal, or point of order, in which case the minority 
        manager shall be in control of the time in opposition.
  [(f) Consideration in Conference.--
          [(1) Convening of conference.--In the case of 
        disagreement between the two Houses of Congress with 
        respect to a disapproval bill passed by both Houses, 
        conferees should be promptly appointed and a conference 
        promptly convened, if necessary.
          [(2) House consideration.--(A) Notwithstanding any 
        other rule of the House of Representatives, it shall be 
        in order to consider the report of a committee of 
        conference relating to a disapproval bill provided such 
        report has been available for one calendar day 
        (excluding Saturdays, Sundays, or legal holidays, 
        unless the House is in session on such a day) and the 
        accompanying statement shall have been filed in the 
        House.
          [(B) Debate in the House of Representatives on the 
        conference report and any amendments in disagreement on 
        any disapproval bill shall each be limited to not more 
        than one hour equally divided and controlled by a 
        proponent and an opponent. A motion to further limit 
        debate is not debatable. A motion to recommit the 
        conference report is not in order, and it is not in 
        order to move to reconsider the vote by which the 
        conference report is agreed to or disagreed to.
          [(3) Senate consideration.--Consideration in the 
        Senate of the conference report and any amendments in 
        disagreement on a disapproval bill shall be limited to 
        not more than four hours equally divided and controlled 
        by the Majority Leader and the Minority Leader or their 
        designees. A motion to recommit the conference report 
        is not in order.
          [(4) Limits on scope.--(A) When a disagreement to an 
        amendment in the nature of a substitute has been 
        referred to a conference, the conferees shall report 
        those cancellations that were included in both the bill 
        and the amendment, and may report a cancellation 
        included in either the bill or the amendment, but shall 
        not include any other matter.
          [(B) When a disagreement on an amendment or 
        amendments of one House to the disapproval bill of the 
        other House has been referred to a committee of 
        conference, the conferees shall report those 
        cancellations upon which both Houses agree and may 
        report any or all of those cancellations upon which 
        there is disagreement, but shall not include any other 
        matter.

                              [DEFINITIONS

  [Sec. 1026. As used in this part:
          [(1) Appropriation law.--The term ``appropriation 
        law'' means an Act referred to in section 105 of title 
        1, United States Code, including any general or special 
        appropriation Act, or any Act making supplemental, 
        deficiency, or continuing appropriations, that has been 
        signed into law pursuant to Article I, section 7, of 
        the Constitution of the United States.
          [(2) Calendar day.--The term ``calendar day'' means a 
        standard 24-hour period beginning at midnight.
          [(3) Calendar days of session.--The term ``calendar 
        days of session'' shall mean only those days on which 
        both Houses of Congress are in session.
          [(4) Cancel.--The term ``cancel'' or ``cancellation'' 
        means--
                  [(A) with respect to any dollar amount of 
                discretionary budget authority, to rescind;
                  [(B) with respect to any item of new direct 
                spending--
                          [(i) that is budget authority 
                        provided by law (other than an 
                        appropriation law), to prevent such 
                        budget authority from having legal 
                        force or effect;
                          [(ii) that is entitlement authority, 
                        to prevent the specific legal 
                        obligation of the United States from 
                        having legal force or effect; or
                          [(iii) through the food stamp 
                        program, to prevent the specific 
                        provision of law that results in an 
                        increase in budget authority or outlays 
                        for that program from having legal 
                        force or effect; and
                  [(C) with respect to a limited tax benefit, 
                to prevent the specific provision of law that 
                provides such benefit from having legal force 
                or effect.
          [(5) Direct spending.--The term ``direct spending'' 
        means--
                  [(A) budget authority provided by law (other 
                than an appropriation law);
                  [(B) entitlement authority; and
                  [(C) the food stamp program.
          [(6) Disapproval bill.--The term ``disapproval bill'' 
        means a bill or joint resolution which only disapproves 
        one or more cancellations of dollar amounts of 
        discretionary budget authority, items of new direct 
        spending, or limited tax benefits in a special message 
        transmitted by the President under this part and--
                  [(A) the title of which is as follows: ``A 
                bill disapproving the cancellations transmitted 
                by the President on ____'', the blank space 
                being filled in with the date of transmission 
                of the relevant special message and the public 
                law number to which the message relates;
                  [(B) which does not have a preamble; and
                  [(C) which provides only the following after 
                the enacting clause: ``That Congress 
                disapproves of cancellations ____'', the blank 
                space being filled in with a list by reference 
                number of one or more cancellations contained 
                in the President's special message, ``as 
                transmitted by the President in a special 
                message on ____'', the blank space being filled 
                in with the appropriate date, ``regarding 
                ____.'', the blank space being filled in with 
                the public law number to which the special 
                message relates.
          [(7) Dollar amount of discretionary budget 
        authority.--(A) Except as provided in subparagraph (B), 
        the term ``dollar amount of discretionary budget 
        authority'' means the entire dollar amount of budget 
        authority--
                  [(i) specified in an appropriation law, or 
                the entire dollar amount of budget authority 
                required to be allocated by a specific proviso 
                in an appropriation law for which a specific 
                dollar figure was not included;
                  [(ii) represented separately in any table, 
                chart, or explanatory text included in the 
                statement of managers or the governing 
                committee report accompanying such law;
                  [(iii) required to be allocated for a 
                specific program, project, or activity in a law 
                (other than an appropriation law) that mandates 
                the expenditure of budget authority from 
                accounts, programs, projects, or activities for 
                which budget authority is provided in an 
                appropriation law;
                  [(iv) represented by the product of the 
                estimated procurement cost and the total 
                quantity of items specified in an appropriation 
                law or included in the statement of managers or 
                the governing committee report accompanying 
                such law; or
                  [(v) represented by the product of the 
                estimated procurement cost and the total 
                quantity of items required to be provided in a 
                law (other than an appropriation law) that 
                mandates the expenditure of budget authority 
                from accounts, programs, projects, or 
                activities for which budget authority is 
                provided in an appropriation law.
          [(B) The term ``dollar amount of discretionary budget 
        authority'' does not include--
                  [(i) direct spending;
                  [(ii) budget authority in an appropriation 
                law which funds direct spending provided for in 
                other law;
                  [(iii) any existing budget authority 
                rescinded or canceled in an appropriation law; 
                or
                  [(iv) any restriction, condition, or 
                limitation in an appropriation law or the 
                accompanying statement of managers or committee 
                reports on the expenditure of budget authority 
                for an account, program, project, or activity, 
                or on activities involving such expenditure.
          [(8) Item of new direct spending.--The term ``item of 
        new direct spending'' means any specific provision of 
        law that is estimated to result in an increase in 
        budget authority or outlays for direct spending 
        relative to the most recent levels calculated pursuant 
        to section 257 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.
          [(9) Limited tax benefit.--(A) The term ``limited tax 
        benefit'' means--
                  [(i) any revenue-losing provision which 
                provides a Federal tax deduction, credit, 
                exclusion, or preference to 100 or fewer 
                beneficiaries under the Internal Revenue Code 
                of 1986 in any fiscal year for which the 
                provision is in effect; and
                  [(ii) any Federal tax provision which 
                provides temporary or permanent transitional 
                relief for 10 or fewer beneficiaries in any 
                fiscal year from a change to the Internal 
                Revenue Code of 1986.
          [(B) A provision shall not be treated as described in 
        subparagraph (A)(i) if the effect of that provision is 
        that--
                  [(i) all persons in the same industry or 
                engaged in the same type of activity receive 
                the same treatment;
                  [(ii) all persons owning the same type of 
                property, or issuing the same type of 
                investment, receive the same treatment; or
                  [(iii) any difference in the treatment of 
                persons is based solely on--
                          [(I) in the case of businesses and 
                        associations, the size or form of the 
                        business or association involved;
                          [(II) in the case of individuals, 
                        general demographic conditions, such as 
                        income, marital status, number of 
                        dependents, or tax return filing 
                        status;
                          [(III) the amount involved; or
                          [(IV) a generally-available election 
                        under the Internal Revenue Code of 
                        1986.
          [(C) A provision shall not be treated as described in 
        subparagraph (A)(ii) if--
                  [(i) it provides for the retention of prior 
                law with respect to all binding contracts or 
                other legally enforceable obligations in 
                existence on a date contemporaneous with 
                congressional action specifying such date; or
                  [(ii) it is a technical correction to 
                previously enacted legislation that is 
                estimated to have no revenue effect.
          [(D) For purposes of subparagraph (A)--
                  [(i) all businesses and associations which 
                are related within the meaning of sections 
                707(b) and 1563(a) of the Internal Revenue Code 
                of 1986 shall be treated as a single 
                beneficiary;
                  [(ii) all qualified plans of an employer 
                shall be treated as a single beneficiary;
                  [(iii) all holders of the same bond issue 
                shall be treated as a single beneficiary; and
                  [(iv) if a corporation, partnership, 
                association, trust or estate is the beneficiary 
                of a provision, the shareholders of the 
                corporation, the partners of the partnership, 
                the members of the association, or the 
                beneficiaries of the trust or estate shall not 
                also be treated as beneficiaries of such 
                provision.
          [(E) For purposes of this paragraph, the term 
        ``revenue-losing provision'' means any provision which 
        results in a reduction in Federal tax revenues for any 
        one of the two following periods--
                  [(i) the first fiscal year for which the 
                provision is effective; or
                  [(ii) the period of the 5 fiscal years 
                beginning with the first fiscal year for which 
                the provision is effective.
          [(F) The terms used in this paragraph shall have the 
        same meaning as those terms have generally in the 
        Internal Revenue Code of 1986, unless otherwise 
        expressly provided.
          [(10) OMB.--The term ``OMB'' means the Director of 
        the Office of Management and Budget.

                [IDENTIFICATION OF LIMITED TAX BENEFITS

  [Sec. 1027. (a) Statement by Joint Tax Committee.--The Joint 
Committee on Taxation shall review any revenue or 
reconciliation bill or joint resolution which includes any 
amendment to the Internal Revenue Code of 1986 that is being 
prepared for filing by a committee of conference of the two 
Houses, and shall identify whether such bill or joint 
resolution contains any limited tax benefits. The Joint 
Committee on Taxation shall provide to the committee of 
conference a statement identifying any such limited tax 
benefits or declaring that the bill or joint resolution does 
not contain any limited tax benefits. Any such statement shall 
be made available to any Member of Congress by the Joint 
Committee on Taxation immediately upon request.
  [(b) Statement Included in Legislation.--(1) Notwithstanding 
any other rule of the House of Representatives or any rule or 
precedent of the Senate, any revenue or reconciliation bill or 
joint resolution which includes any amendment to the Internal 
Revenue Code of 1986 reported by a committee of conference of 
the two Houses may include, as a separate section of such bill 
or joint resolution, the information contained in the statement 
of the Joint Committee on Taxation, but only in the manner set 
forth in paragraph (2).
  [(2) The separate section permitted under paragraph (1) shall 
read as follows: ``Section 1021(a)(3) of the Congressional 
Budget and Impoundment Control Act of 1974 shall ____ apply to 
______.'', with the blank spaces being filled in with--
          [(A) in any case in which the Joint Committee on 
        Taxation identifies limited tax benefits in the 
        statement required under subsection (a), the word 
        ``only'' in the first blank space and a list of all of 
        the specific provisions of the bill or joint resolution 
        identified by the Joint Committee on Taxation in such 
        statement in the second blank space; or
          [(B) in any case in which the Joint Committee on 
        Taxation declares that there are no limited tax 
        benefits in the statement required under subsection 
        (a), the word ``not'' in the first blank space and the 
        phrase ``any provision of this Act'' in the second 
        blank space.
  [(c) President's Authority.--If any revenue or reconciliation 
bill or joint resolution is signed into law pursuant to Article 
I, section 7, of the Constitution of the United States--
          [(1) with a separate section described in subsection 
        (b)(2), then the President may use the authority 
        granted in section 1021(a)(3) only to cancel any 
        limited tax benefit in that law, if any, identified in 
        such separate section; or
          [(2) without a separate section described in 
        subsection (b)(2), then the President may use the 
        authority granted in section 1021(a)(3) to cancel any 
        limited tax benefit in that law that meets the 
        definition in section 1026.
  [(d) Congressional Identifications of Limited Tax Benefits.--
There shall be no judicial review of the congressional 
identification under subsections (a) and (b) of a limited tax 
benefit in a conference report.]

    Part B--Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitations

 CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS AND DEFERRALS OF 
              BUDGET AUTHORITY AND OBLIGATION LIMITATIONS

  Sec. 1011. (a) Proposed Rescissions.--Within 45 days after 
the enactment of any bill or joint resolution providing any 
funding, the President may propose, in the manner provided in 
subsection (b), the rescission of all or part of any dollar 
amount of such funding.
  (b) Special Message.--If the President proposes that Congress 
rescind funding, the President shall transmit a special message 
to Congress containing the information specified in this 
subsection.
          (1) Packaging of requested rescissions.--For each 
        piece of legislation that provides funding, the 
        President shall request at most 2 packages of 
        rescissions and the rescissions in each package shall 
        apply only to funding contained in that legislation. 
        The President shall not include the same rescission in 
        both packages.
          (2) Transmittal.--The President shall deliver each 
        message requesting a package of rescissions to the 
        Secretary of the Senate if the Senate is not in session 
        and to the Clerk of the House of Representatives if the 
        House is not in session. The President shall make a 
        copy of the transmittal message publicly available, and 
        shall publish in the Federal Register a notice of the 
        message and information on how it can be obtained.
          (3) Contents of special message.--For each request to 
        rescind funding under this part, the transmittal 
        message shall--
                  (A) specify--
                          (i) the dollar amount to be 
                        rescinded;
                          (ii) the agency, bureau, and account 
                        from which the rescission shall occur;
                          (iii) the program, project, or 
                        activity within the account (if 
                        applicable) from which the rescission 
                        shall occur;
                          (iv) the amount of funding, if any, 
                        that would remain for the account, 
                        program, project, or activity if the 
                        rescission request is enacted;
                          (v) the reasons the President 
                        requests the rescission;
                          (vi) to the maximum extent 
                        practicable, the estimated fiscal, 
                        economic, and budgetary effect 
                        (including the effect on outlays and 
                        receipts in each fiscal year) of the 
                        proposed rescission;
                          (vii) to the maximum extent 
                        practicable, all facts, circumstances, 
                        and considerations relating to or 
                        bearing upon the proposed rescission 
                        and the decision to propose the 
                        rescission, and the estimated effect of 
                        the proposed rescission upon the 
                        objects, purposes, or programs; and
                          (viii) if a second special message is 
                        transmitted pursuant to subsection 
                        (b)(2), a detailed explanation of why 
                        the proposed rescissions are not 
                        substantially similar to any other 
                        proposed rescission in such other 
                        message; and
                  (B) designate each separate rescission 
                request by number; and include proposed 
                legislative text of an approval bill to 
                accomplish the requested rescissions which may 
                not include--
                          (i) any changes in existing law, 
                        other than the rescission of funding; 
                        or
                          (ii) any supplemental appropriations, 
                        transfers, or reprogrammings.

          GRANTS OF AND LIMITATIONS ON PRESIDENTIAL AUTHORITY

  Sec. 1012. (a) Presidential Authority To Withhold Funding.--
Notwithstanding any other provision of law and if the President 
proposes a rescission of funding under this part, the President 
may, subject to the time limits provided in subsection (c), 
temporarily withhold that funding from obligation.
  (b) Withholding Available Only Once Per Proposed 
Rescission.--Except as provided in section 1019, the President 
may not invoke the authority to withhold funding granted by 
subsection (a) for any other purpose.
  (c) Time Limits.--The President shall make available for 
obligation any funding withheld under subsection (a) on the 
earliest of--
          (1) the day on which the President determines that 
        the continued withholding or reduction no longer 
        advances the purpose of legislative consideration of 
        the approval bill;
          (2) the 45th day following the date of enactment of 
        the appropriations measure to which the approval bill 
        relates; or
          (3) the last day that the President determines the 
        obligation of the funding in question can no longer be 
        fully accomplished in a prudent manner before its 
        expiration.
  (d) Deficit Reduction.--
          (1) In general.--Funds that are rescinded under this 
        part shall be dedicated only to reducing the deficit or 
        increasing the surplus.
          (2) Adjustment of levels in the concurrent resolution 
        on the budget.--Not later than 5 days after the date of 
        enactment of an approval bill as provided under this 
        part, the chairs of the Committees on the Budget of the 
        Senate and the House of Representatives shall revise 
        allocations and aggregates and other appropriate levels 
        under the appropriate concurrent resolution on the 
        budget to reflect the rescissions, and the Committees 
        on Appropriations of the House of Representatives and 
        the Senate shall report revised suballocations pursuant 
        to section 302(b) of title III, as appropriate.
          (3) Adjustments to statutory limits.--After enactment 
        of an approval bill provided under this section, the 
        President shall revise downward by the amount of the 
        rescissions applicable limits under the Balanced Budget 
        and Emergency Deficit Control Act of 1985.

                 PROCEDURES FOR EXPEDITED CONSIDERATION

  Sec. 1013. (a) Expedited Consideration.--
          (1) Referral of special message.--Any special message 
        received by the Congress pursuant to section 1011(b) 
        shall be referred to the Committees on Appropriations 
        and the Committees on the Budget of the House of 
        Representatives and the Senate.
          (2) Introduction of approval bill.--The majority 
        leader or minority leader of the House of 
        Representatives or his designee shall (by request) 
        introduce an approval bill as defined in section 1015 
        not later than the third day or, if the House is not in 
        session during that period, the next day of session 
        after the date of receipt of a special message 
        transmitted to the Congress under section 1011(b). If 
        the bill is not introduced as provided in the preceding 
        sentence in the House, then, on the first day the House 
        is in session following the period during which the 
        leaders may introduce the message, any Member of that 
        House may introduce the bill.
          (3) Consideration in the House of Representatives.--
                  (A) Referral and reporting.--(i) Each 
                committee of referral of the House of 
                Representatives shall report an approval bill 
                without amendment not later than the fifth day 
                after the date of its referral. If the 
                committee fails to report the bill within that 
                period or the House of Representatives has 
                adopted a concurrent resolution providing for 
                adjournment sine die at the end of a Congress, 
                such committee shall be automatically 
                discharged from further consideration of the 
                bill and it shall be placed on the appropriate 
                calendar.
                  (ii) As soon as practicable after such 
                approval bill is referred to the Committee on 
                Appropriations, CBO shall prepare, and submit 
                to the Committees on Appropriations and the 
                Committees on the Budget of the House of 
                Representatives and the Senate, an estimate of 
                the reduction in budget authority which would 
                result from the enactment of that bill.
                  (B) Proceeding to consideration.--Within 
                three days after an approval bill is reported 
                by or discharged from the Committee on 
                Appropriations of the House of Representatives 
                or if the House has adopted a concurrent 
                resolution providing for adjournment sine die 
                at the end of a Congress, it shall be in order 
                for any Member to announce his intention to 
                move to proceed to consider the approval bill 
                in the House. The motion to proceed shall be in 
                order only during a time designated by the 
                Speaker within the legislative schedule for the 
                next two days or the next day on which the 
                House is in session. Such a motion shall not be 
                in order after the House of Representatives has 
                disposed of a prior motion to proceed with 
                respect to that approval bill. The previous 
                question shall be considered as ordered on the 
                motion to proceed without intervening motion. A 
                motion to reconsider the vote by which the 
                motion to proceed is disposed of shall not be 
                in order.
                  (C) House consideration.--If the motion to 
                proceed is agreed to, the House shall 
                immediately proceed to consider the approval 
                bill in the House without intervening motion, 
                order, or other business, and the approval bill 
                shall remain the unfinished business of the 
                House until disposed of. The approval bill 
                shall be considered as read. All points of 
                order against the approval bill or its 
                consideration are waived. The previous question 
                shall be considered as ordered on an approval 
                bill to its passage, without intervening 
                motion, except 4 hours of debate equally 
                divided and controlled by the proponent and an 
                opponent and one motion to further limit debate 
                on the bill. A motion to reconsider the vote on 
                passage of the bill shall not be in order.
          (4) Consideration in the Senate.--
                  (A) Referral.--An approval bill received in 
                the Senate shall be referred to the Committee 
                on Appropriations.
                  (B) Committee action.--The Committee on 
                Appropriations shall report without amendment 
                the bill referred to it under this subsection 
                not later than 5 days after the referral. The 
                committee may order the bill reported 
                favorably, unfavorably, or without 
                recommendation. If the Committee on 
                Appropriations has not reported the bill by the 
                end of the 5-day period, the Committee shall be 
                automatically discharged from further 
                consideration of the bill and it shall be 
                placed on the appropriate calendar.
                  (C) Motion to proceed.--On the following day, 
                3 subsequent days, or, if the Senate is not in 
                session during that period, the next day of 
                session, it shall be in order for any Senator 
                to move to proceed to consider the bill in the 
                Senate. The motion shall be decided without 
                debate and the motion to reconsider shall be 
                deemed to have been laid on the table. Such a 
                motion shall not be in order after the Senate 
                has disposed of a prior motion to proceed with 
                respect to that approval bill.
                  (D) Consideration.--If a motion to proceed to 
                the consideration of the approval bill is 
                agreed to, the Senate shall immediately proceed 
                to consideration of the approval bill without 
                intervening motion, order, or other business, 
                and the approval bill shall remain the 
                unfinished business of the Senate until 
                disposed of. Consideration on the bill in the 
                Senate under this subsection, and all debatable 
                motions and appeals in connection therewith, 
                shall not exceed 10 hours, equally divided and 
                controlled in the usual form. All points of 
                order against the approval bill or its 
                consideration are waived. Consideration in the 
                Senate on any debatable motion or appeal in 
                connection with the approval bill shall be 
                limited to not more than 1 hour, to be equally 
                divided and controlled in the usual form. A 
                motion to postpone, or a motion to proceed to 
                the consideration of other business, or a 
                motion to recommit the approval bill is not in 
                order. A motion to reconsider the vote by which 
                the approval bill is agreed to or disagreed to 
                is not in order.
  (b) Amendments Prohibited.--No amendment to an approval bill 
considered under this section shall be in order in either the 
Senate or the House of Representatives.

                        TREATMENT OF RESCISSIONS

  Sec. 1014. Rescissions proposed by the President under this 
part shall take effect only upon enactment of the applicable 
approval bill. If an approval bill is not enacted into law 
within 45 days from the enactment of the appropriation measure 
to which the approval bill relates, then the approval bill 
shall not be eligible for expedited consideration under the 
provisions of this Act.

                              DEFINITIONS

  Sec. 1015. As used in this part:
          (1) Appropriation measure.--The term ``appropriation 
        measure'' means an Act referred to in section 105 of 
        title 1, United States Code, including any general or 
        special appropriation Act, or any Act making 
        supplemental, deficiency, or continuing appropriations, 
        that has been enacted into law pursuant to article I, 
        section 7, of the Constitution of the United States.
          (2) Approval bill.--The term ``approval bill'' means 
        a bill which only approves rescissions of funding in a 
        special message transmitted by the President under this 
        part and--
                  (A) the title of which is as follows: ``A 
                bill approving the proposed rescissions 
                transmitted by the President on ___'', the 
                blank space being filled in with the date of 
                transmission of the relevant special message 
                and the public law number to which the message 
                relates; and
                  (B) which provides only the following after 
                the enacting clause: ``That the Congress 
                approves the proposed rescissions ___'', the 
                blank space being filled in with the list of 
                the rescissions contained in the President's 
                special message, ``as transmitted by the 
                President in a special message on ____'', the 
                blank space being filled in with the 
                appropriate date, ``regarding ____.'', the 
                blank space being filled in with the public law 
                number to which the special message relates.
          (3) Day.--The term ``day'' means a standard 24-hour 
        period beginning at midnight and a number of days shall 
        be calculated by excluding Sundays, legal holidays, and 
        any day during which neither chamber of Congress is in 
        session.
          (4) Rescind or rescission.--The terms ``rescind'' or 
        ``rescission'' mean to permanently cancel or prevent 
        budget authority or outlays available under an 
        obligation limit from having legal force or effect.
          (5) Congressional Budget Office.--The term ``CBO'' 
        means the Director of the Congressional Budget Office.
          (6) Comptroller General.--The term ``Comptroller 
        General'' means the Comptroller General of the United 
        States.
          (7) Deferral of budget authority.--The term 
        ``deferral of budget authority'' includes--
                  (A) withholding or delaying the obligations 
                or expenditure of budget authority (whether by 
                establishing reserves or otherwise) provided 
                for projects or activities; or
                  (B) any other type of Executive action or 
                inaction which effectively precludes the 
                obligation or expenditure of budget authority, 
                including authority to obligate by contract in 
                advance of appropriations as specifically 
                authorized by law.
          (8) Funding.--(A) Except as provided in subparagraph 
        (B), the term ``funding'' means all or part of the 
        dollar amount of budget authority or obligation limit--
                  (i) specified in an appropriation measure, or 
                the dollar amount of budget authority or 
                obligation limit required to be allocated by a 
                specific proviso in an appropriation measure 
                for which a specific dollar figure was not 
                included;
                  (ii) represented separately in any table, 
                chart, or explanatory text included in the 
                statement of managers or the governing 
                committee report accompanying such law; or
                  (iii) represented by the product of the 
                estimated procurement cost and the total 
                quantity of items specified in an appropriation 
                measure or included in the statement of 
                managers or the governing committee report 
                accompanying such law.
          (B) The term ``funding'' does not include--
                  (i) direct spending;
                  (ii) budget authority in an appropriation 
                measure which funds direct spending provided 
                for in other law;
                  (iii) any existing budget authority canceled 
                in an appropriation measure; or
                  (iv) any restriction or condition in an 
                appropriation measure or the accompanying 
                statement of managers or committee reports on 
                the expenditure of budget authority for an 
                account, program, project, or activity, or on 
                activities involving such expenditure.
          (9) Withhold.--The terms ``withhold'' and 
        ``withholding'' apply to any executive action or 
        inaction that precludes the obligation of funding at a 
        time when it would otherwise have been available to an 
        agency for obligation. The terms do not include 
        administrative or preparatory actions undertaken prior 
        to obligation in the normal course of implementing 
        budget laws.

                               EXPIRATION

  Sec. 1016. On December 15, 2015, the amendments made by the 
Expedited Legislative Line-Item Veto and Rescissions Act of 
2011 shall be replaced by the provisions of part B of the 
Impoundment Control Act of 1974 as in effect immediately before 
the date of enactment of the Expedited Legislative Line-Item 
Veto and Rescissions Act of 2011.

                     REPORTS BY COMPTROLLER GENERAL

  Sec. [1015] 1017. (a) Failure To Transmit Special Message.--
If the Comptroller General finds that the President, the 
Director of the Office of Management and Budget, the head of 
any department or agency of the United States, or any other 
officer or employee of the United States--
          (1) is to establish a reserve or proposes to defer 
        budget authority with respect to which the President is 
        required to transmit a special message under [section 
        1012 or 1013] section 1011 or 1019; or
          (2) has ordered, permitted, or approved the 
        establishment of such a reserve or a deferral of budget 
        authority;
and that the President has failed to transmit a special message 
with respect to such reserve or deferral, the Comptroller 
General shall make a report on such reserve or deferral and any 
available information concerning it to both Houses of Congress. 
The provisions of this part shall apply with respect to such 
reserve or deferral in the same manner and with the same effect 
as if such report of the Comptroller General were a special 
message transmitted by the President under [section 1012 or 
1013] section 1011 or 1019, and, for purposes of this part, 
such report shall be considered a special message transmitted 
under [section 1012 or 1013] section 1011 or 1019.
  (b) Incorrect Classification of Special Message.--If the 
President has transmitted a special message to both Houses of 
Congress in accordance with [section 1012 or 1013] section 1011 
or 1019, and the Comptroller General believes that the 
President so transmitted the special message in accordance with 
one of those sections when the special message should have been 
transmitted in accordance with the other of those sections, the 
Comptroller General shall make a report to both Houses of the 
Congress setting forth his reasons.

           *       *       *       *       *       *       *


                      SUITS BY COMPTROLLER GENERAL

  Sec. [1016] 1018. If, under this title, budget authority is 
required to be made available for obligation and such budget 
authority is not made available for obligation, the Comptroller 
General is hereby expressly empowered, through attorneys of his 
own selection, to bring a civil action in the United States 
District Court for the District of Columbia to require such 
budget authority to be made available for obligation, and such 
court is hereby expressly empowered to enter in such civil 
action, against any department, agency, officer, or employee of 
the United States, any decree, judgment, or order, which may be 
necessary or appropriate to make such budget authority 
available for obligation. No civil action shall be brought by 
the Comptroller General under this section until the expiration 
of 25 [calendar] days [of continuous session] of the Congress 
following the date on which an explanatory statement by the 
Comptroller General of the circumstances giving rise to the 
action contemplated has been filed with the Speaker of the 
House of Representatives and the President of the Senate.

                 PROPOSED DEFERRALS OF BUDGET AUTHORITY

  Sec. [1013] 1019. (a) * * *

           *       *       *       *       *       *       *

  (c) Exception.--The provisions of this section do not apply 
to any budget authority proposed to be rescinded or that is to 
be reserved as set forth in a special message required to be 
transmitted under section [1012] 1011.

           *       *       *       *       *       *       *

                              ----------                              


CONGRESSIONAL BUDGET ACT OF 1974

           *       *       *       *       *       *       *


TITLE III--CONGRESSIONAL BUDGET PROCESS

           *       *       *       *       *       *       *


                              ADJUSTMENTS

  Sec. 314. (a) * * *
  (b) Adjustments for Rescissions.--(1) Whenever an approval 
bill passes the House of Representatives, the Committee on the 
Budget shall immediately reduce the applicable allocations 
under section 302(a) by the total amount of reductions in 
budget authority and in outlays resulting from such approval 
bill.
  (2) As used in this subsection, the term ``approval bill'' 
has the meaning given to such term in section 1015.
  [(b)] (c) Application of Adjustments.--The adjustments made 
pursuant to subsection (a) for legislation shall--
          (1) * * *

           *       *       *       *       *       *       *

  [(c)] (d) Reporting Revised Suballocations.--Following any 
adjustment made under subsection (a) or (b), the Committees on 
Appropriations of the Senate and the House of Representatives 
may report appropriately revised suballocations under section 
302(b) to carry out this section.
  [(d)] (e) Emergencies in the House of Representatives.--(1) * 
* *

           *       *       *       *       *       *       *

  [(e)] (f) Enforcement of Discretionary Spending Caps.--It 
shall not be in order in the House of Representatives or the 
Senate to consider any bill, joint resolution, amendment, 
motion, or conference report that would cause the discretionary 
spending limits as set forth in section 251 of the Balanced 
Budget and Emergency Deficit Control Act to be exceeded.

           *       *       *       *       *       *       *


TITLE IX--MISCELLANEOUS PROVISIONS; EFFECTIVE DATES

           *       *       *       *       *       *       *


                     EXERCISE OF RULEMAKING POWERS

  Sec. 904. (a) The provisions of this title and of titles I, 
III, IV, and V and the provisions of sections 701, 703, and 
[1017] 1013 are enacted by the Congress--
          (1) * * *

           *       *       *       *       *       *       *

  (d) Appeals.--
          (1) Procedure.--Appeals in the Senate from the 
        decisions of the Chair relating to any provision of 
        title III or IV or [section 1017] section 1013 shall, 
        except as otherwise provided therein, be limited to 1 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the resolution, concurrent 
        resolution, reconciliation bill, or rescission bill, as 
        the case may be.

           *       *       *       *       *       *       *


                       Views of Committee Members

    Clause 2(l) of rule XI requires each committee to provide 
two days to Members of the committee to file Minority, 
additional, supplemental, or dissenting views and to include 
such views in the report on legislation considered by the 
committee. The following views were submitted:

                            ADDITIONAL VIEWS

     Budget Statement of Representative Allyson Y. Schwartz (PA-13)

                           DECEMBER 15, 2011

    Congress must be fiscally responsible and pay for what we 
purchase. To restore America to a strong financial footing, we 
need a balanced approach that includes spending cuts, smart 
investments to ensure our economic competitiveness, and 
reasonable tax reform.
    I am committed to deficit reduction. Cutting our deficit 
starts with the elimination of duplicative spending, fraud and 
waste; streamlining government to make it more efficient; 
eliminating or reducing programs that do not work while 
protecting those that are vital to our nation.
    I have reservations about the Expedited Line-Item Veto, and 
Rescission Act of 2011, because it delegates more Congressional 
authority to the President, when Congress should be addressing 
our budget challenges. However, this legislation does provide 
the American public with a more transparent budget process. And 
I will support the measure.
                                   Allyson Y. Schwartz.

                            DISSENTING VIEWS

    We oppose the passage of H.R. 3521, the Expedited Line-Item 
Veto and Rescissions Act. Proponents have sought its enactment 
under the misnomer of deficit reduction. We believe, however 
that this bill sacrifices Congressional authority while 
achieving little towards its stated aims. By privileging the 
Executive's spending priorities over the deliberations of the 
Congress, this bill directly threatens the Constitutional 
design of the distribution of powers.
    We laud the bipartisan collaboration under which this 
proposal has been sought, and we respect the deficit reduction 
cause that this bill claims to serve. Further, we do not doubt 
that the Executive brings unique and valuable insights to our 
budgetary and spending decisions. But sufficient forums already 
exist for their consideration.
    Under the framework set forth by the Impoundment Control 
Act of 1974, the President may send rescissions to Congress for 
consideration. The President may propose, but Congress may 
ignore. The President may advocate, and Congress may be 
convinced. In the end, if a 45-day period lapses or Congress 
disapproves the request, funding must be executed as previously 
set forth.
    This tool still remains at the President's disposal, 
although a rescission request was last sent to Congress in 2000 
by the Clinton Administration. Many current Members have never 
served in a Congress that has received a proposed rescission 
from a President. For that matter, only seven of the 
Committee's thirty-eight members have ever seen an Executive 
exercise such existing authority. Without having seen the 
current framework in action, we question the need for 
substantially altering it.
    We should not so easily forget the original impetus behind 
the Impoundment Control Act. While presidential impoundment has 
been documented as far back as the early nineteenth century, 
abuse of the practice by President Nixon compelled Congress to 
set forth specific processes for consideration of rescissions. 
The President--through impoundment--sought to withhold funds 
from execution of the Clean Water Act, subsidized housing 
programs, and community development programs. Although this was 
precluded by intervention from the Supreme Court, Congress 
reasserted itself by enactment of the Budget Control Act and 
the Impoundment Control Act that it contained. This bill 
received more than four hundred votes in the House of 
Representatives, and not a single vote was cast against it in 
the Senate. Our predecessors showed a great deal of 
institutional pride in the United States Congress and faith in 
our abilities to set the spending priorities of a nation.
    Alternatively, the proposal now before us would shelve 
regular order in favor of an expedited process and requires the 
Executive's proposals receive an up-or-down vote in the House 
of Representatives. By accelerating consideration of a 
President's policy priorities, we allow the Executive to set 
our Congressional agenda, and we explicitly provide another 
branch of government a seat at our negotiations--where they do 
not belong.
    Many members of the Committee pointed to the experience of 
our states, and forty-three of Governors' capacities to rescind 
line-item spending. But the proponents failed to 364 52 
acknowledge that these states are no better equipped to meet 
the current budgetary challenges now dominating discussion in 
state capitals across the country. Nor is there any evidence 
that Governors without such power preside over states riddled 
with wasteful spending.
    We should understand that culpability of so-called ``bad'' 
spending falls on both ends of Pennsylvania Avenue. But--by 
design--our country's founders sought to promote our judgment 
and our deliberations over the desires of the Executive. The 
power of the purse is the most fundamental of responsibilities 
with which we are entrusted, and we should vigilantly protect 
it.
    Enhanced rescission authority does not necessarily generate 
budgetary savings; however, drawn to its logical conclusion, it 
directs greater funding to the spending priorities of the 
President. This bill may, unintentionally, provide a backdoor 
for policy prescriptions and allow de facto legislating from 
the White House. The very delicate balance of powers as 
outlined by the Impoundment Control Act has struck the 
appropriate equilibrium.

                                   Mike Honda.
                                   Betty McCollum.
                                   Bill Pascrell, Jr.
                       Appendix: Legislative Text

                              ----------                              


    The following legislative text incorporates both amendments 
adopted in the Committee on the Budget and technical 
corrections.

                                  
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