[Constitution, Jefferson's Manual, and the Rules of the House of Representatives, 105th Congress]
[105th Congress]
[House Document 104-272]
[Miscellaneous Provisions Of Congressional Budget Laws]
[Pages 967-996]
[From the U.S. Government Publishing Office, www.gpo.gov]



[[Page 967]]
 

            BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT


 excerpts from the balanced budget and emergency deficit control act of 
                               __________


These excerpts are provided for quick reference. They include the 
provisions of the Act that relate directly to legislative procedure. A 
more thorough understanding of the statutory scheme requires the full 
statutory text (see 2 U.S.C. 900 et seq.).

SEC. 250. TABLE OF CONTENTS; STATEMENT OF BUDGET ENFORCEMENT THROUGH 
                                  1985


* * * * *

(c) Definitions.--As used in this part:
        SEQUESTRATION; DEFINITIONS.

          (1) The terms ``budget authority'', ``new budget authority'', 

        ``outlays'', and ``deficit'' have the meanings given to such 

        terms in section 3 of the Congressional Budget and Impoundment 

        Control Act of 1974 and ``discretionary spending limit'' shall 

        mean the amounts specified in section 251 of this Act.

          (2) The terms ``sequester'' and ``sequestration'' refer to or 

        mean the cancellation of budgetary resources provided by 

        discretionary appropriations or direct spending law.

          (3) The term ``breach'' means, for any fiscal year, the amount 

        (if any) by which new budget authority or outlays for that year 

        (within a category of discretionary appropriations) is above 

        that category's discretionary spending limit for new budget 

        authority or outlays for that year, as the case may be.

          (4) The term ``category'' means the subsets of discretionary 

        appropriations in section 251(c). Discretionary appropriations 

        in each of the categories shall be those designated in the joint 

        explanatory statement accompanying the conference report on the 

        Balanced Budget Act of 1997. New accounts or activities shall be 


[[Page 968]]

        cat-

        egorized only after consultation with the committees on 

        appropriations and the Budget of the House of Representatives 

        and the Senate and that consultation shall, to the extent 

        practicable, include written communication to such committees 

        that affords such committees the opportunity to comment before 

        official action is taken with respect to new accounts or 

        activities.

          (5) The term ``baseline'' means the projection (described in 

        section 257) of current-year levels of new budget authority, 

        outlays, receipts, and the surplus or deficit into the budget 

        year and the outyears.

          (6) The term ``budgetary resources'' means new budget 

        authority, unobligated balances, direct spending authority, and 

        obligation limitations.

          (7) The term ``discretionary appropriations'' means budgetary 

        resources (except to fund direct-spending programs) provided in 

        appropriation Acts.

          (8) The term ``direct spending'' means--

                  (A) budget authority provided by law other than 

                appropriation Acts;

                  (B) entitlement authority; and

                  (C) the food stamp program.

          (9) The term ``current'' means, with respect to OMB estimates 

        included with a budget submission under section 1105(a) of title 

        31, United States Code, the estimates consistent with the 

        economic and technical assumptions underlying that budget and 

        with respect to estimates made after that budget submission that 

        are not included with it, estimates consistent with the economic 

        and technical assumptions underlying the most recently submitted 

        President's budget.

          (10) The term ``real economic growth'', with respect to any 

        fiscal year, means the growth in the gross national product 

        during such fiscal year, adjusted for inflation, consistent with 

        Department of Commerce definitions.

          (11) The term ``account'' means an item for which 

        appropriations are made in any appropriation Act and, for items 

        not provided for in appropriation Acts, such term means an item 

        for which there is a designated budget account identification 

        code number in the President's budget.

          (12) The term ``budget year'' means, with respect to a session 


[[Page 969]]

        of Congress, the fiscal year of the Govern-

        ment that starts on October 1 of the calendar year in which that 

        session begins.

          (13) The term ``current year'' means, with respect to a budget 

        year, the fiscal year that immediately precedes that budget 

        year.

          (14) The term ``outyear'' means, with respect to a budget 

        year, any of the first 4 fiscal years that follow the budget 

        year.

          (15) The term ``OMB'' means the Director of the Office of 

        Management and Budget.

          (16) The term ``CBO'' means the Director of the Congressional 

        Budget Office.

          (17) As used in this part, all references to entitlement 

        authority shall include the list of mandatory appropriations 

        included in the joint explanatory statement of managers 

        accompanying the conference report on the Balanced Budget Act of 

        1997.

          (18) The term ``deposit insurance'' refers to the expenses the 

        Federal deposit insurance agencies, and other Federal agencies 

        supervising insured depository institutions, resulting from full 

        funding of, and continuation of, the deposit insurance guarantee 

        commitment in effect under current estimates.

          (19) The term ``asset sale'' means the sale to the public of 

        any asset (except for those assets covered by title V of the 

        Congressional Budget Act of 1974), whether physical or 


        financial, owned in whole or in part by the United States.


SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS.

  Several definitions were amended by the Budget Enforcement Act of 1997 
(sec. 10202, P.L. 105-33).

  (a) Enforcement.--

          (1) Sequestration.--Within 15 calendar days after Congress 

        adjourns to end a session and on the same day as a sequestration 

        (if any) under section 252 and section 253, there shall be a 

        sequestration to eliminate a budget-year breach, if any, within 

        any category.

          (2) Eliminating a breach.--Each non-exempt account within a 

        category shall be reduced by a dollar amount calculated by 

        multiplying the baseline level of sequestrable budgetary 

        resources in that account at that time by the uniform percentage 

        necessary to eliminate a breach within that category; except 


[[Page 970]]

        that the health programs set forth in section 256(e) shall 

        not be reduced by more than 2 percent and the uniform percent 

        applicable to all other programs under this paragraph shall be 

        increased (if necessary) to a level sufficient to eliminate that 

        breach. If, within a category, the discretionary spending limits 

        for both new budget authority and outlays are breached, the 

        uniform percentage shall be calculated by--

                  (A) first, calculating the uniform percentage 

                necessary to eliminate the breach in new budget 

                authority, and

                  (B) second, if any breach in outlays remains, 

                increasing the uniform percentage to a level sufficient 

                to eliminate that breach.

          (3) Military personnel.--If the President uses the authority 

        to exempt any military personnel from sequestration under 

        section 255(f), each account within subfunctional category 051 

        (other than those military personnel accounts for which the 

        authority provided under section 255(f) has been exercised) 

        shall be further reduced by a dollar amount calculated by 

        multiplying the enacted level of non-exempt budgetary resources 

        in that account at that time by the uniform percentage necessary 

        to offset the total dollar amount by which outlays are not 

        reduced in military personnel accounts by reason of the use of 

        such authority.

          (4) Part-year appropriations.--If, on the date specified in 

        paragraph (1), there is in effect an Act making or continuing 

        appropriations for part of a fiscal year for any budget account, 

        then the dollar sequestration calculated for that account under 

        paragraphs (2) and (3) shall be subtracted from--

                  (A) the annualized amount otherwise available by law 

                in that account under that or a subsequent part-year 

                appropriation; and

                  (B) when a full-year appropriation for that account is 

                enacted, from the amount otherwise provided by the full-

                year appropriation.

          (5) Look-back.--If, after June 30, an appropriation for the 

        fiscal year in progress is enacted that causes a breach within a 

        category for that year (after taking into account any 

        sequestration of amounts within that category), the 

        discretionary spending limits for that category for the next 

        fiscal year shall be reduced by the amount or amounts of that 

        breach.

          (6) Within-session sequestration.--If an appropriation for a 


[[Page 971]]

        fiscal year in progress is enacted (after 

        Congress adjourns to end the session for that budget year and 

        before July 1 of that fiscal year) that causes a breach within a 

        category for that year (after taking into account any prior 

        sequestration of amounts within that category), 15 days later 

        there shall be a sequestration to eliminate that breach within 

        that category following the procedures set forth in paragraphs 

        (2) through (4).

          (7) Estimates.--

                  (A) CBO estimates.--As soon as practicable after 

                Congress completes action on any discretionary 

                appropriation, CBO, after consultation with the 

                Committees on the Budget of the House of Representatives 

                and the Senate, shall provide OMB with an estimate of 

                the amount of discretionary new budget authority and 

                outlays for the current year (if any) and the budget 

                year provided by that legislation.

                  (B) OMB estimates and explanation of differences.--Not 

                later than 7 calendar days (excluding Saturdays, 

                Sundays, and legal holidays) after the date of enactment 

                of any discretionary appropriation, OMB shall transmit a 

                report to the House of Representatives and to the Senate 

                containing the CBO estimate of that legislation, an OMB 

                estimate of the amount of discretionary new budget 

                authority and outlays for the current year (if any) and 

                the budget year provided by that legislation, and an 

                explanation of any difference between the 2 estimates. 

                If during the preparation of the report OMB determines 

                that there is a significant difference between OMB and 

                CBO, OMB shall consult with the Committees on the Budget 

                of the House of Representatives and the Senate regarding 

                that difference and that consultation shall include, to 

                extent practicable, written communication to those 

                committees that affords such committees the opportunity 

                to comment before the issuance of the report.

                  (C) Assumptions and guidelines.--OMB estimates under 

                this paragraph shall be made using current economic and 

                technical assumptions. OMB shall use the OMB estimates 

                transmitted to the Congress under this paragraph. OMB 

                and CBO shall prepare estimates under this paragraph in 


[[Page 972]]

                conformance with scorekeeping guide-

                lines determined after consultation among the House and 

                Senate Committees on the Budget, CBO, and OMB.

                  (D) Annual appropriations.--For purposes of this 

                paragraph, amounts provided by annual appropriations 

                shall include any new budget authority and outlays for 

                the current year (if any) and the budget year in 

                accounts for which funding is provided in that 

                legislation that result from previously enacted 


                legislation.

  (b) Adjustments to Discretionary Spending Limits.--

          (1) Preview Report.--When the President submits the budget 

        under section 1105 of title 31, United States Code, OMB shall 

        calculate and the budget shall include adjustments to 

        discretionary spending limits (and those limits as cumulatively 

        adjusted) for the budget year and each outyear to reflect 

        changes in concepts and definitions. Such changes shall equal 

        the baseline levels of new budget authority and outlays using 

        up-to-date concepts and definitions minus those levels using the 

        concepts and definitions in effect before such changes. Such 

        changes may only be made after consultation with the committees 

        on Appropriations and the Budget of the House of Representatives 

        and the Senate and that consultation shall include written 

        communication to such committees that affords such committees 

        the opportunity to comment before official action is taken with 

        respect to such changes.

          (2) Sequestration reports.--When OMB submits a sequestration 

        report under section 254(e), (f), or (g) for a fiscal year, OMB 

        shall calculate, and the sequestration report and subsequent 

        budgets submitted by the President under section 1105(a) of 

        title 31, United States Code, shall include adjustments to 

        discretionary spending limits (and those limits as adjusted) for 

        the fiscal year and each succeeding year through 2002, as 

        follows:

                  (A) Emergency appropriations.--If, for any fiscal 

                year, appropriations for discretionary accounts are 

                enacted that the President designates as emergency 

                requirements and that the Congress so designates in 

                statute, the adjustment shall be the total of such 

                appropriations in discretionary accounts designated as 


[[Page 973]]

                emergency re-

                quirements and the outlays flowing in all fiscal years 

                from such appropriations. This subparagraph shall not 

                apply to appropriations to cover agricultural crop 

                disaster assistance.

                  (B) Special outlay allowance.--If, in any fiscal year, 

                outlays for a category exceed the discretionary spending 

                limit for that category but new budget authority does 

                not exceed its limit for that category (after 

                application of the first step of a sequestration 

                described in subsection (a)(2), if necessary), the 

                adjustment in outlays for a fiscal year is the amount of 

                the excess but not to exceed 0.5 percent of the sum of 

                the adjusted discretionary spending limits on outlays 

                for that fiscal year.

                  (C) Continuing disability reviews.--(i) If a bill or 

                joint resolution making appropriations for a fiscal year 

                is enacted that specifies an amount for continuing 

                disability reviews under the heading ``Limitation on 

                Administrative Expenses'' for the Social Security 

                Administration, the adjustments for that fiscal year 

                shall be the additional new budget authority provided in 

                that Act for such reviews for that fiscal year and the 

                additional outlays flowing from such amounts, but shall 

                not exceed--

                        (I) for fiscal year 1998, $290,000,000 in 

                    additional new budget authority and $338,000,000 in 

                    additional outlays;

                        (II) for fiscal year 1999, $520,000,000 in 

                    additional new budget authority and $520,000,000 in 

                    additional outlays;

                        (III) for fiscal year 2200, $520,000,000 in 

                    additional new budget authority and $520,000,000 in 

                    additional outlays;

                        (IV) for fiscal year 2001, $520,000,000 in 

                    additional new budget authority and $520,000,000 in 

                    additional outlays; and

                        (V) for fiscal year 2002, $520,000,000 in 

                    additional new budget authority and $520,000,000 in 

                    additional outlays.

                  (ii) As used in this subparagraph--

                        (I) the term ``continuing disability reviews'' 

                    means reviews or redeterminations as defined under 

                    section 201(g)(1)(A) of the Social Security Act and 

                    reviews and redeterminations authorized under 


[[Page 974]]

                    section 211 of the Personal Respon-

                    sibility and Work Opportunity Reconciliation Act 

                    of 1996;

                        (II) the term ``additional new budget 

                    authority'' means the amount provided for a fiscal 

                    year, in excess of $200,000,000, in an 

                    appropriations Act and specified to pay for the 

                    costs of continuing disability reviews under the 

                    heading ``Limitation on Administrative Expenses'' 

                    for the Social Security Administration; and

                        (III) the term ``additional outlays'' means 

                    outlays, in excess of $200,000,000 in a fiscal year, 

                    flowing from the amounts specified for continuing 

                    disability reviews under the heading ``Limitation on 

                    Administrative Expenses'' for the Social Security 

                    Administration, including outlays in that fiscal 

                    year flowing from amounts specified in Acts enacted 

                    for prior fiscal years (but not before 1996).

                  (D) Allowance for imf.--If an appropriation bill or 

                joint resolution is enacted for a fiscal year through 

                2002 that includes an appropriation with respect to 

                clause (i) or (ii), the adjustment shall be the amount 

                of budget authority in the measure that is the dollar 

                equivalent of the Special Drawing Rights with respect 

                to--

                        (i) an increase in the United States quota as 

                    part of the International Monetary Fund Eleventh 

                    General Review of Quotas (United States Quota); or

                        (ii) any increase in the maximum amount 

                    available to the Secretary of the Treasury pursuant 

                    to section 17 of the Bretton Woods Agreements Act, 

                    as amended from time to time (New Arrangements to 

                    Borrow).

                  (E) Allowance for international arrearages.--

                        (i) Adjustments.--If an appropriation bill or 

                    joint resolution is enacted for fiscal year 1998, 

                    1999, or 2000 that includes an appropriation for 

                    arrearages for international organizations, 

                    international peacekeeping, and multilateral 

                    development banks for that fiscal year, the 

                    adjustment shall be the amount of budget authority 

                    in that measure and the outlays flowing in all 


[[Page 975]]

                    fiscal years from that budget authority.

                        (ii) Limitations.--The total amount of 

                    adjustments made pursuant to this subparagraph for 

                    the period of fiscal years 1998 through 2000 shall 

                    not exceed $1,884,000,000 in budget authority.

                  (F) EITC compliance initiative.--If an appropriation 

                bill or joint resolution is enacted for a fiscal year 

                that includes an appropriation for an earned income tax 

                credit compliance initiative, the adjustment shall be 

                the amount of budget authority in that measure for that 

                initiative and the outlays flowing in all fiscal years 

                from that budget authority, but not to exceed--

                        (i) with respect to fiscal year 1998, 

                    $138,000,000 in new budget authority and 

                    $131,000,000 in outlays;

                        (ii) with respect to fiscal year 1999, 

                    $143,000,000 in new budget authority and 

                    $143,000,000 in outlays;

                        (iii) with respect to fiscal year 2000, 

                    $144,000,000 in new budget authority and 

                    $144,000,000 in outlays;

                        (iv) with respect to fiscal year 2001, 

                    $145,000,000 in new budget authority and 

                    $145,000,000 in outlays; and

                        (v) with respect to fiscal year 2002, 

                    $146,000,000 in new budget authority and 


                    $146,000,000 in outlays.

  (c) Discretionary Spending Limit.--As used in this part, the term 
``discretionary spending limit'' means--

          (1) with respect to fiscal year 1997, for the discretionary 

        category, the current adjusted limits of new budget authority 

        and outlays;

          (2) with respect to fiscal year 1998--

                  (A) for the defense category: $269,000,000,000 in new 

                budget authority and $266,823,000,000 in outlays;

                  (B) for the nondefense category: $252,357,000,000 in 

                new budget authority and $282,853,000,000 in outlays; 

                and

                  (C) for the violent crime reduction category: 

                $5,500,000,000 in new budget authority and 

                $3,592,000,000 in outlays;


[[Page 976]]

          (3) with respect to fiscal year 1999--

                  (A) for the defense category: $271,500,000,000 in new 

                budget authority and $266,518,000,000 in outlays;

                  (B) for the nondefense category: $255,699,000,000 in 

                new budget authority and $287,850,000,000 in outlays; 

                and

                  (C) for the violent crime reduction category: 

                $5,800,000,000 in new budget authority and 

                $4,953,000,000 in outlays;

          (4) with respect to fiscal year 2000--

                  (A) for the discretionary category: $532,693,000,000 

                in new budget authority and $558,711,000,000 in outlays; 

                and

                  (B) for the violent crime reduction category: 

                $4,500,000,000 in new budget authority and 

                $5,554,000,000 in outlays;

          (5) with respect to fiscal year 2001, for the discretionary 

        category: $542,032,000,000 in new budget authority and 

        $564,396,000,000 in outlays; and

          (6) with respect to fiscal year 2002, for the discretionary 

        category: $551,074,000,000 in new budget authority and 


        $560,799,000,000 in outlays;
as adjusted in strict conformance with subsection (b).


SEC. 252. ENFORCING PAY-AS-YOU-GO.

  Section 251 was significantly rewritten by the Budget Enforcement Act 
of 1997 (sec. 10203, P.L. 105-33) to extend discretionary spending 
limits and sequestration enforcement. The amendment also imposed 
separate spending limits for defense, nondefense, and violent crime 
reduction, rendering section 251A unnecessary and was therefore repealed 
(Budget Enforcement Act of 1997 (sec. 10204, P.L. 105-33).


  (a) Purpose.--The purpose of this section is to assure that any 
legislation enacted before October 1, 2002, affecting direct spending or 
receipts that increases the deficit will trigger an offsetting 
sequestration.

  (b) Sequestration.--

          (1) Timing.--Not later than 15 calendar days after the date 

        Congress adjourns to end a session and on the same day as a 

        sequestration (if any) under section 251 or 253, there shall be 

        a sequestration to offset the amount of any net deficit increase 

        caused by all direct spending and receipts legislation enacted 

        before October 1, 2002, as calculated under paragraph (2).

          (2) Calculation of deficit increase.--OMB shall calculate the 


[[Page 977]]

        amount of deficit increase or decrease by adding--

                  (A) all OMB estimates for the budget year of direct 

                spending and receipts legislation transmitted under 

                subsection (d);

                  (B) the estimated amount of savings in direct spending 

                programs applicable to budget year resulting from the 

                prior year's sequestration under this section or section 

                253, if any, as published in OMB's final sequestration 

                report for that prior year; and

                  (C) any net deficit increase or decrease in the 

                current year resulting from all OMB estimates for the 

                current year of direct spending and receipts legislation 

                transmitted under subsection (d) that were not reflected 

                in the final OMB sequestration report for the current 


                year.

  (c) Eliminating a Deficit Increase.--(1) The amount required to be 
sequestered in a fiscal year under subsection (b) shall be obtained from 
non-exempt direct spending accounts from actions taken in the following 
order:

          (A) First.--All reductions in automatic spending increases 

        specified in section 256(a) shall be made.

          (B) Second.--If additional reductions in direct spending 

        accounts are required to be made, the maximum reductions 

        permissible under sections 256(b) (guaranteed and direct student 

        loans) and 256(c) (foster care and adoption assistance) shall be 

        made.

          (C) Third.--(i) If additional reductions in direct spending 

        accounts are required to be made, each remaining non-exempt 

        direct spending account shall be reduced by the uniform 

        percentage necessary to make the reductions in direct spending 

        required by paragraph (1); except that the medicare programs 

        specified in section 256(d) shall not be reduced by more than 4 

        percent and the uniform percentage applicable to all other 

        direct spending programs under this paragraph shall be increased 

        (if necessary) to a level sufficient to achieve the required 

        reduction in direct spending.

          (ii) For purposes of determining reductions under clause (i), 

        outlay reductions (as a result of sequestration of Commodity 

        Credit Corporation commodity price support contracts in the 

        fiscal year of a sequestration) that would occur in the 

        following fiscal year shall be credited as outlay reductions in 


[[Page 978]]

        the fiscal year of the sequestration.

  (2) For purposes of this subsection, accounts shall be assumed to be 
at the level in the baseline.

  (d) Estimates.--

          (1) CBO estimates.--As soon as practicable after Congress 

        completes action on any direct spending or receipts legislation, 

        CBO shall provide an estimate to OMB of that legislation.

          (2) OMB estimates.--Not later than 7 calendar days (excluding 

        Saturdays, Sundays, and legal holidays) after the date of 

        enactment of any direct spending or receipts legislation, OMB 

        shall transmit a report to the House of Representatives and to 

        the Senate containing--

                  (A) the CBO estimate of that legislation;

                  (B) an OMB estimate of that legislation using current 

                economic and technical assumptions; and

                  (C) an explanation of any difference between the 2 

                estimates.

          (3) Significant differences.--If during the preparation of the 

        report under paragraph (2) OMB determines that there is a 

        significant difference between the OMB and CBO estimates, OMB 

        shall consult with the Committees on the Budget of the House of 

        Representatives and the Senate regarding that difference and 

        that consultation, to the extent practicable, shall include 

        written communication to such committees that affords such 

        committees the opportunity to comment before the issuance of 

        that report.

          (4) Scope of estimates.--The estimates under this section 

        shall include the amount of change in outlays or receipts for 

        the current year (if applicable), the budget year, and each 

        outyear excluding any amounts resulting from--

                  (A) full funding of, and continuation of, the deposit 

                insurance guarantee commitment in effect under current 

                estimates; and

                  (B) emergency provisions as designated under 

                subsection (e).

          (5) Scorekeeping guidelines.--OMB and CBO, after consultation 

        with each other and the Committees on the Budget of the House of 

        Representatives and the Senate, shall--

                  (A) determine common scorekeeping guidelines; and

                  (B) in conformance with such guidelines, prepare 


[[Page 979]]

                estimates under this section.


  (e) Emergency Legislation.--If a provision of direct spending or 
receipts legislation is enacted that the President designates as an 
emergency requirement and that the Congress so designates in statute, 
the amounts of new budget authority, outlays, and receipts in all fiscal 
years resulting from that provision shall be designated as an emergency 
requirement in the reports required under subsection (d). This 
subsection shall not apply to direct spending provisions to cover 
agricultural crop disaster assistance.


SEC. 253. ENFORCING DEFICIT TARGETS.

  Section 252 was significantly rewritten by the Budget Enforcement Act 
of 1997 (sec. 10205, P.L. 105-33).


  (a) Sequestration.--Within 15 calendar days after Congress adjourns to 
end a session (other than of the One Hundred First Congress) and on the 
same day as a sequestration (if any) under section 251 and section 252, 
but after any sequestration required by section 251 (enforcing 
discretionary spending limits) or section 252 (enforcing pay-as-you-go), 
there shall be a sequestration to eliminate the excess deficit (if any 
remains) if it exceeds the margin.

  (b) Excess Deficit; Margin.--The excess deficit is, if greater than 
zero, the estimated deficit for the budget year, minus--

          (1) the maximum deficit amount for that year;

          (2) the amounts for that year designated as emergency direct 

        spending or receipts legislation under section 252(e); and

          (3) for any fiscal year in which there is not a full 

        adjustment for technical and economic reestimates, the deposit 

        insurance reestimate for that year, if any, calculated under 


        subsection (h).
The ``margin'' for fiscal year 1992 or 1993 is zero and for fiscal year 
1994 or 1995 is $15,000,000,000.


  (c) Dividing the Sequestration.--To eliminate the excess deficit in a 
budget year, half of the required outlay reductions shall be obtained 
from non-exempt defense accounts (accounts designated as function 050 in 
the President's fiscal year 1991 budget submission) and half from non-
exempt, non-defense accounts (all other non-exempt accounts).


[[Page 980]]

count at that time by the uniform percentage necessary to carry out 
subsection (c), except that, if any military personnel are exempt, 
adjustments shall be made under the procedure set forth in section 
251(a)(3).

  (d) Defense.--Each non-exempt defense account shall be reduced by a 
dollar amount calculated by multiplying the level of sequestrable 
budgetary resources in that ac-

  (e) Non-Defense.--Actions to reduce non-defense accounts shall be 
taken in the following order:

          (1) First.--All reductions in automatic spending increases 

        under section 256(a) shall be made.

          (2) Second.--If additional reductions in non-defense accounts 

        are required to be made, the maximum reduction permissible under 

        sections 256(b) (guaranteed student loans) and 256(c) (foster 

        care and adoption assistance) shall be made.

          (3) Third.--(A) If additional reductions in non-defense 

        accounts are required to be made, each remaining non-exempt, 

        non-defense account shall be reduced by the uniform percentage 

        necessary to make the reductions in non-defense outlays required 

        by subsection (c), except that--

                  (i) the medicare program specified in section 256(d) 

                shall not be reduced by more than 2 percent in total 

                including any reduction of less than 2 percent made 

                under section 252 or, if it has been reduced by 2 

                percent or more under section 252, it may not be further 

                reduced under this section; and

                  (ii) the health programs set forth in section 256(e) 

                shall not be reduced by more than 2 percent in total 

                (including any reduction made under section 251),

        and the uniform percent applicable to all other programs under 

        this subsection shall be increased (if necessary) to a level 

        sufficient to achieve the required reduction in non-defense 

        outlays.

          (B) For purposes of determining reductions under subparagraph 

        (A), outlay reduction (as a result of sequestration of Commodity 

        Credit Corporation commodity price support contracts in the 

        fiscal year of a sequestration) that would occur in the 

        following fiscal year shall be credited as outlay reductions in 


        the fiscal year of the sequestration.


[[Page 981]]

  (f) Baseline Assumptions; Part-year Appropriations.--(1) Budget 
assumptions.--For purposes of subsections (b), (c), (d), and (e), 
accounts shall be assumed to be at the level in the baseline minus any 
reductions required to be made under sections 251 and 252.

  (2) Part-year appropriations.--If, on the date specified in subsection 
(a), there is in effect an Act making or continuing appropriations for 
part of a fiscal year for any non-exempt budget account, then the dollar 
sequestration calculated for that account under subsection (d) or (e), 
as applicable, shall be subtracted from--

          (A) the annualized amount otherwise available by law in that 

        account under that or a subsequent part-year appropriation; and

          (B) when a full-year appropriation for that account is 

        enacted, from the amount otherwise provided by the full-year 

        appropriation; except that the amount to be sequestered from 

        that account shall be reduced (but not below zero) by the 

        savings achieved by that appropriation when the enacted amount 


        is less than the baseline for that account.

  (g) Adjustments to Maximum Deficit Amounts.--(1) Adjustments.--

          (A) When the President submits the budget for fiscal year 

        1992, the maximum deficit amounts for fiscal years 1992, 1993, 

        1994, and 1995 shall be adjusted to reflect up-to-date 

        reestimates of economic and technical assumptions and any 

        changes in concepts or definitions. When the President submits 

        the budget for fiscal year 1993, the maximum deficit amounts for 

        fiscal years 1993, 1994, and 1995 shall be further adjusted to 

        reflect up-to-date reestimates of economic and technical 

        assumptions and any changes in concepts or definitions.

          (B) When submitting the budget for fiscal year 1994, the 

        President may choose to adjust the maximum deficit amounts for 

        fiscal years 1994 and 1995 to reflect up-to-date reestimates for 

        economic and technical assumptions. If the President chooses to 

        adjust the maximum deficit amount when submitting the fiscal 

        year 1994 budget, the President may choose to invoke the same 

        adjustment procedure when submitting the budget for fiscal year 

        1995. In each case, the President must choose between making no 

        adjustment or the full adjustment described in paragraph (2). If 

        the President chooses to make that full adjustment, then those 

        procedures for adjusting discretionary spending limits described 

        in sections 251(b)(1)(C) and 251(b)(2)(E), otherwise applicable 


[[Page 982]]

        through fiscal year 1993 or 1994 (as the case may be), 

        shall be deemed to apply for fiscal year 1994 (and 1995 if 

        applicable).

          (C) When the budget for fiscal year 1994 or 1995 is submitted 

        and the sequestration reports for those years under section 254 

        are made (as applicable), if the President does not choose to 

        make the adjustments set forth in subparagraph (B), the maximum 

        deficit amount for that fiscal year shall be adjusted by the 

        amount of the adjustment to discretionary spending limits first 

        applicable for that year (if any) under section 251(b).

          (D) For each fiscal year the adjustments required to be made 

        with the submission of the President's budget for that year 

        shall also be made when OMB submits the sequestration update 

        report and the final sequestration report for that year, but OMB 

        shall continue to use the economic and technical assumptions in 

        the President's budget for that year.
Each adjustment shall be made by increasing or decreasing the maximum 
deficit amounts set forth in section 601 of the Congressional Budget Act 
of 1974.

  (2) Calculations of adjustments.--The required increase or decrease 
shall be calculated as follows:

          (A) The baseline deficit or surplus shall be calculated using 

        up-to-date economic and technical assumptions, using up-to-date 

        concepts and definitions, and, in lieu of the baseline levels of 

        discretionary appropriations, using the discretionary spending 

        limits set forth in section 601 of the Congressional Budget Act 

        of 1974 as adjusted under section 251.

          (B) The net deficit increase or decrease caused by all direct 

        spending and receipts legislation enacted after the date of 

        enactment of this section (after adjusting for any sequestration 

        of direct spending accounts) shall be calculated for each fiscal 

        year by adding--

                  (i) the estimates of direct spending and receipts 

                legislation transmitted under section 252(d) applicable 

                to each such fiscal year; and

                  (ii) the estimated amount of savings in direct 

                spending programs applicable to each such fiscal year 

                resulting from the prior year's sequestration under this 

                section or section 252 of direct spending, if any, as 

                contained in OMB's final sequestration report for that 


[[Page 983]]

                year.

          (C) The amount calculated under subparagraph (B) shall be 

        subtracted from the amount calculated under subparagraph (A).

          (D) The maximum deficit amount set forth in section 601 of the 

        Congressional Budget Act of 1974 shall be subtracted from the 

        amount calculated under subparagraph (C).

          (E) The amount calculated under subparagraph (D) shall be the 


        amount of the adjustment required by paragraph (1).

  (h) Treatment of Deposit Insurance.--(1) Initial estimates.--The 
initial estimates of the net costs of federal deposit insurance for 
fiscal year 1994 and fiscal year 1995 (assuming full funding of, and 
continuation of, the deposit insurance guarantee commitment in effect on 
the date of the submission of the budget for fiscal year 1993) shall be 
set forth in that budget.


SEC. 254. REPORTS AND ORDERS.

* * * * *

  (2) Reestimates.--For fiscal year 1994 and fiscal year 1995, the 
amount of the reestimate of deposit insurance costs shall be calculated 
by subtracting the amount set forth under paragraph (1) for that year 
from the current estimate of deposit insurance costs (but assuming full 
funding of, and continuation of, the deposit insurance guarantee 
commitment in effect on the date of submission of the budget for fiscal 
year 1993).

  (i) Low-Growth Report.--At any time, CBO shall notify the Congress 
if--

          (1) during the period consisting of the quarter during which 

        such notification is given, the quarter preceding such 

        notification and the 4 quarters following such notification, CBO 

        or OMB has determined that real economic growth is projected or 

        estimated to be less than zero with respect to each of any 2 

        consecutive quarters within such period; or

          (2) the most recent of the Department of Commerce's advance 

        preliminary or final reports of actual real economic growth 

        indicate that the rate of real economic growth for each of the 

        most recently reported quarter and the immediately preceding 


        quarter is less than one percent.


[[Page 984]]

section, the Majority Leader of the Senate introduced pursuant to 
section 258, infra, a joint resolution suspending certain budget 
enforcement laws (S. J. Res. 44, Jan. 23, 1991, p. 2128).

* * * * *

SEC. 258. SUSPENSION IN THE EVENT OF WAR OR LOW GROWTH.

  This paragraph was redesignated by the Budget Enforcement Act of 1997 
(sec. 10206, P.L. 105-33). In response to a ``low-growth report'' under 
this 

  (a) Procedures in the Event of a Low-Growth Report.--

          (1) Trigger.--Whenever CBO issues a low-growth report under 

        section 254(j), the Majority Leader of the House of 

        Representatives may, and the Majority Leader of the Senate 

        shall, introduce a joint resolution (in the form set forth in 

        paragraph (2)) declaring that the conditions specified in 

        section 254(j) are met and suspending the relevant provisions of 

        this title, titles III and VI of the Congressional Budget Act of 

        1974, and section 1103 of title 31, United States Code.

          (2) Form of joint resolution.--

                  (A) The matter after the resolving clause in any joint 

                resolution introduced pursuant to paragraph (1) shall be 

                as follows: ``That the Congress declares that the 

                conditions specified in section 254(j) of the Balanced 

                Budget and Emergency Deficit Control Act of 1985 are 

                met, and the implementation of the Congressional Budget 

                and Impoundment Control Act of 1974, chapter 11 of title 

                31, United States Code, and part C of the Balanced 

                Budget and Emergency Deficit Control Act of 1985 are 

                modified as described in section 258(b) of the Balanced 

                Budget and Emergency Deficit Control Act of 1985.''.

                  (B) The title of the joint resolution shall be ``Joint 

                resolution suspending certain provisions of law pursuant 

                to section 258(a)(2) of the Balanced Budget and 

                Emergency Deficit Control Act of 1985.''; and the joint 

                resolution shall not contain any preamble.

          (3) Committee action.--Each joint resolution introduced 

        pursuant to paragraph (1) shall be referred to the appropriate 

        committees of the House of Representatives or the Committee on 

        the Budget of the Senate, as the case may be; and such Committee 

        shall report the joint resolution to its House without amendment 

        on or before the fifth day on which such House is in session 


[[Page 985]]

        after the date on which the joint 

        resolution is introduced. If the Committee fails to report the 

        joint resolution within the five-day period referred to in the 

        preceding sentence, it shall be automatically discharged from 

        further consideration of the joint resolution, and the joint 

        resolution shall be placed on the appropriate calendar.

          (4) Consideration of joint resolution.--(A) A vote on final 

        passage of a joint resolution reported to the Senate or 

        discharged pursuant to paragraph (3) shall be taken on or before 

        the close of the fifth calendar day of session after the date on 

        which the joint resolution is reported or after the Committee 

        has been discharged from further consideration of the joint 

        resolution. If prior to the passage by one House of a joint 

        resolution of that House, that House receives the same joint 

        resolution from the other House, then--

                  (i) the procedure in that House shall be the same as 

                if no such joint resolution had been received from the 

                other House, but

                  (ii) the vote on final passage shall be on the joint 

                resolution of the other House.

        When the joint resolution is agreed to, the Clerk of the House 

        of Representatives (in the case of a House joint resolution 

        agreed to in the House of Representatives) or the Secretary of 

        the Senate (in the case of a Senate joint resolution agreed to 

        in the Senate) shall cause the joint resolution to be engrossed, 

        certified, and transmitted to the other House of the Congress as 

        soon as practicable.

          (B)(i) In the Senate, a joint resolution under this paragraph 

        shall be privileged. It shall not be in order to move to 

        reconsider the vote by which the motion is agreed to or 

        disagreed to.

          (ii) Debate in the Senate on a joint resolution under this 

        paragraph, and all debatable motions and appeals in connection 

        therewith, shall be limited to not more than five hours. The 

        time shall be equally divided between, and controlled by, the 

        majority leader and the minority leader or their designees.

          (iii) Debate in the Senate on any debatable motion or appeal 

        in connection with a joint resolution under this paragraph shall 

        be limited to not more than one hour, to be equally divided 

        between, and controlled by, the mover and the manager of the 

        joint resolution, except that in the event the manager of the 


[[Page 986]]

        joint resolution is in favor of any such motion or appeal, the 

        time in opposition thereto shall be controlled by the minority 

        leader or his designee.

          (iv) A motion in the Senate to further limit debate on a joint 

        resolution under this paragraph is not debatable. A motion to 

        table or to recommit a joint resolution under this paragraph is 

        not in order.

          (C) No amendment to a joint resolution considered under this 


        paragraph shall be in order in the Senate.

  (b) Suspension of Sequestration Procedures.--Upon the enactment of a 
declaration of war or a joint resolution described in subsection (a)--

          (1) the subsequent issuance of any sequestration report or any 

        sequestration order is precluded;

          (2) sections 302(f), 310(d), 311(a), and title VI of the 

        Congressional Budget Act of 1974 are suspended; and

          (3) section 1103 of title 31, United States Code, is 


        suspended.

  (c) Restoration of Sequestration Procedures.--(1) In the event of a 
suspension of sequestration procedures due to a declaration of war, 
then, effective with the first fiscal year that begins in the session 
after the state of war is concluded by Senate ratification of the 
necessary treaties, the provisions of subsection (b) triggered by that 
declaration of war are no longer effective.


SEC. 258A. MODIFICATION OF PRESIDENTIAL ORDER.

  (2) In the event of a suspension of sequestration procedures due to 
the enactment of a joint resolution described in subsection (a), then, 
effective with regard to the first fiscal year beginning at least 12 
months after the enactment of that resolution, the provisions of 
subsection (b) triggered by that resolution are no longer effective.


[[Page 987]]

  (a) Introduction of Joint Resolution.--At any time after the Director 
of OMB issues a final sequestration report under section 254 for a 
fiscal year, but before the close of the twentieth calendar day of the 
session of Congress beginning after the date of issuance of such report, 
the majority leader of either House of Congress may introduce a joint 
resolution which contains provisions directing the President to modify 
the most recent order issued under section 254 or provide an alternative 
to reduce the deficit for such fiscal year. After the introduction of 
the first such joint resolution in either House of Congress in any 
calendar year, then no other joint resolution introduced in such House 
in such calendar year shall be subject to the procedures set forth in 
this section.

  (b) Procedures for Consideration of Joint Resolutions.--

          (1) Referral to committee.--A joint resolution introduced in 

        the Senate under subsection (a) shall not be referred to a 

        committee of the Senate and shall be placed on the calendar 

        pending disposition of such joint resolution in accordance with 

        this subsection.

          (2) Consideration in the senate.--On or after the third 

        calendar day (excluding Saturdays, Sundays, and legal holidays) 

        beginning after a joint resolution is introduced under 

        subsection (a), notwithstanding any rule or precedent of the 

        Senate, including Rule XXII of the Standing Rules of the Senate, 

        it is in order (even though a previous motion to the same effect 

        has been disagreed to) for any Member of the Senate to move to 

        proceed to the consideration of the joint resolution. The motion 

        is not in order after the eighth calendar day (excluding 

        Saturdays, Sundays, and legal holidays) beginning after a joint 

        resolution (to which the motion applies) is introduced. The 

        joint resolution is privileged in the Senate. A motion to 

        reconsider the vote by which the motion is agreed to or 

        disagreed to shall not be in order. If a motion to proceed to 

        the consideration of the joint resolution is agreed to, the 

        Senate shall immediately proceed to consideration of the joint 

        resolution without intervening motion, order, or other business, 

        and the joint resolution shall remain the unfinished business of 

        the Senate until disposed of.

          (3) Debate in the senate.--(A) In the Senate, debate on a 

        joint resolution introduced under subsection (a), amendments 

        thereto, and all debatable motions and appeals in connection 

        therewith shall be limited to not more than 10 hours, which 

        shall be divided equally between the majority leader and the 

        minority leader (or their designees).

          (B) A motion to postpone, or a motion to proceed to the 

        consideration of other business is not in order. A motion to 

        reconsider the vote by which the joint resolution is agreed to 

        or disagreed to is not in order, and a motion to recommit the 

        joint resolution is not in order.

          (C)(i) No amendment that is not germane to the provisions of 

        the joint resolution or to the order issued under section 254 

        shall be in order in the Senate. In the Senate, an amendment, 


[[Page 988]]

        any amendment to an 

        amendment, or any debatable motion or appeal is debatable for 

        not to exceed 30 minutes to be equally divided between, and 

        controlled by, the mover and the majority leader (or their 

        designees), except that in the event that the majority leader 

        favors the amendment, motion, or appeal, the minority leader 

        (or the minority leader's designee) shall control the time in 

        opposition to the amendment, motion, or appeal.

          (ii) In the Senate, an amendment that is otherwise in order 

        shall be in order notwithstanding the fact that it amends the 

        joint resolution in more than one place or amends language 

        previously amended. It shall not be in order in the Senate to 

        vote on the question of agreeing to such a joint resolution or 

        any amendment thereto unless the figures then contained in such 

        joint resolution or amendment are mathematically consistent.

          (4) Vote on final passage.--Immediately following the 

        conclusion of the debate on a joint resolution introduced under 

        subsection (a), a single quorum call at the conclusion of the 

        debate if requested in accordance with the rules of the Senate, 

        and the disposition of any pending amendments under paragraph 

        (3), the vote on final passage of the joint resolution shall 

        occur.

          (5) Appeals.--Appeals from the decisions of the Chair shall be 

        decided without debate.

          (6) Conference reports.--In the Senate, points of order under 

        titles III, IV, and VI of the Congressional Budget Act of 1974 

        are applicable to a conference report on the joint resolution or 

        any amendments in disagreement thereto.

          (7) Resolution from other house.--If, before the passage by 

        the Senate of a joint resolution of the Senate introduced under 

        subsection (a), the Senate receives from the House of 

        Representatives a joint resolution introduced under subsection 

        (a), then the following procedures shall apply:

          (A) The joint resolution of the House of Representatives shall 

        not be referred to a committee and shall be placed on the 

        calendar.

          (B) With respect to a joint resolution introduced under 

        subsection (a) in the Senate--

                  (i) the procedure in the Senate shall be the same as 

                if no joint resolution had been received from the House; 


[[Page 989]]

                but

                  (ii)(I) the vote on final passage shall be on the 

                joint resolution of the House if it is identical to the 

                joint resolution then pending for passage in the Senate; 

                or

                  (II) if the joint resolution from the House is not 

                identical to the joint resolution then pending for 

                passage in the Senate and the Senate then passes the 

                Senate joint resolution, the Senate shall be considered 

                to have passed the House joint resolution as amended by 

                the text of the Senate joint resolution.

          (C) Upon disposition of the joint resolution received from the 

        House, it shall no longer be in order to consider the resolution 

        originated in the Senate.

          (8) Senate action on house resolution.--If the Senate receives 

        from the House of Representatives a joint resolution introduced 

        under subsection (a) after the Senate has disposed of a Senate 

        originated resolution which is identical to the House passed 

        joint resolution, the action of the Senate with regard to the 

        disposition of the Senate originated joint resolution shall be 

        deemed to be the action of the Senate with regard to the House 

        originated joint resolution. If it is not identical to the House 

        passed joint resolution, then the Senate shall be considered to 

        have passed the joint resolution of the House as amended by the 


SEC. 258B. FLEXIBILITY AMONG DEFENSE PROGRAMS, PROJECTS, AND ACTIVITIES.

        text of the Senate joint resolution.


[[Page 990]]

account outlay rates that are identical to those used in the report by 
the Director of OMB under section 254.

  (a) Subject to subsections (b), (c), and (d), new budget authority and 
unobligated balances for any programs, projects, or activities within 
major functional category 050 (other than a military personnel account) 
may be further reduced beyond the amount specified in an order issued by 
the President under section 254 for such fiscal year. To the extent such 
additional reductions are made and result in additional outlay 
reductions, the President may provide for lesser reductions in new 
budget authority and unobligated balances for other programs, projects, 
or activities within major functional category 050 for such fiscal year, 
but only to the extent that the resulting outlay increases do not exceed 
the additional outlay reductions, and no such program, project, or 
activity may be increased above the level actually made available by law 
in appropriation Acts (before taking sequestration into account). In 
making calculations under this subsection, the President shall use 


  (b) No actions taken by the President under subsection (a) for a 
fiscal year may result in a domestic base closure or realignment that 
would otherwise be subject to section 2687 of title 10, United States 
Code.

  (c) The President may not exercise the authority provided by this 
paragraph for a fiscal year unless--

          (1) the President submits a single report to Congress 

        specifying, for each account, the detailed changes proposed to 

        be made for such fiscal year pursuant to this section;

          (2) that report is submitted within 5 calendar days of the 

        start of the next session of Congress; and

          (3) a joint resolution affirming or modifying the changes 

        proposed by the President pursuant to this paragraph becomes 


        law.


  (d) Within 5 calendar days of session after the President submits a 
report to Congress under subsection (c)(1) for a fiscal year, the 
majority leader of each House of Congress shall (by request) introduce a 
joint resolution which contains provisions affirming the changes 
proposed by the President pursuant to this paragraph.

  (e)(1) The matter after the resolving clause in any joint resolution 
introduced pursuant to subsection (d) shall be as follows: ``That the 
report of the President as submitted on [Insert Date] under section 258B 
is hereby approved.''.

  (2) The title of the joint resolution shall be ``Joint resolution 
approving the report of the President submitted under section 258B of 
the Balanced Budget and Emergency Deficit Control Act of 1985.''.


  (3) Such joint resolution shall not contain any preamble.


[[Page 991]]

ment shall be considered to be relevant if it relates to function 050 
(national defense).
  (f)(1) A joint resolution introduced in the Senate under subsection 
(d) shall be referred to the Committee on Appropriations, and if not 
reported within 5 calendar days (excluding Saturdays, Sundays, and legal 
holidays) from the date of introduction shall be considered as having 
been discharged therefrom and shall be placed on the appropriate 
calendar pending disposition of such joint resolution in accordance with 
this subsection. In the Senate, no amendment proposed in the Committee 
on Appropriations shall be in order other than an amendment (in the 
nature of a substitute) that is germane or relevant to the provisions of 
the joint resolution or to the order issued under section 254. For 
purposes of this paragraph, an amend-


  (2) On or after the third calendar day (excluding Saturdays, Sundays, 
and legal holidays) beginning after a joint resolution is placed on the 
Senate calendar, notwithstanding any rule or precedent of the Senate, 
including Rule XXII of the Standing Rules of the Senate, it is in order 
(even though a previous motion to the same effect has been disagreed to) 
for any Member of the Senate to move to proceed to the consideration of 
the joint resolution. The motion is not in order after the eighth 
calendar day (excluding Saturdays, Sundays, and legal holidays) 
beginning after such joint resolution is placed on the appropriate 
calendar. The motion is not debatable. The joint resolution is 
privileged in the Senate. A motion to reconsider the vote by which the 
motion is agreed to or disagreed to shall not be in order. If a motion 
to proceed to the consideration of the joint resolution is agreed to, 
the Senate shall immediately proceed to consideration of the joint 
resolution without intervening motion, order, or other business, and the 
joint resolution shall remain the unfinished business of the Senate 
until disposed of.

  (g)(1) In the Senate, debate on a joint resolution introduced under 
subsection (d), amendments thereto, and all debatable motions and 
appeals in connection therewith shall be limited to not more than 10 
hours, which shall be divided equally between the majority leader and 
the minority leader (or their designees).


  (2) A motion to postpone, or a motion to proceed to the consideration 
of other business is not in order. A motion to reconsider the vote by 
which the joint resolution is agreed to or disagreed to is not in order. 
In the Senate, a motion to recommit the joint resolution is not in 
order.


[[Page 992]]

ignee) shall control the time in opposition to the amendment, motion, or 
appeal.
  (h)(1) No amendment that is not germane or relevant to the provisions 
of the joint resolution or to the order issued under section 254 shall 
be in order in the Senate. For purposes of this paragraph, an amendment 
shall be considered to be relevant if it relates to function 050 
(national defense). In the Senate, an amendment, any amendment to an 
amendment, or any debatable motion or appeal is debatable for not to 
exceed 30 minutes to be equally divided between, and controlled by, the 
mover and the majority leader (or their designees), except that in the 
event that the majority leader favors the amendment, motion, or appeal, 
the minority leader (or the minority leader's des-

  (2) In the Senate, an amendment that is otherwise in order shall be in 
order notwithstanding the fact that it amends the joint resolution in 
more than one place or amends language previously amended, so long as 
the amendment makes or maintains mathematical consistency. It shall not 
be in order in the Senate to vote on the question of agreeing to such a 
joint resolution or any amendment thereto unless the figures then 
contained in such joint resolution or amendment are mathematically 
consistent.

  (3) It shall not be in order in the Senate to consider any amendment 
to any joint resolution introduced under subsection (d) or any 
conference report thereon if such amendment or conference report would 
have the effect of decreasing any specific budget outlay reductions 
below the level of such outlay reductions provided in such joint 
resolution unless such amendment or conference report makes a reduction 
in other specific budget outlays at least equivalent to any increase in 
outlays provided by such amendment or conference report.


  (4) For purposes of the application of paragraph (3), the level of 
outlays and specific budget outlay reductions provided in an amendment 
shall be determined on the basis of estimates made by the Committee on 
the Budget of the Senate.


  (i) Immediately following the conclusion of the debate on a joint 
resolution introduced under subsection (d), a single quorum call at the 
conclusion of the debate if requested in accordance with the rules of 
the Senate, and the disposition of any pending amendments under 
subsection (h), the vote on final passage of the joint resolution shall 
occur.


  (j) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure relating to a 
joint resolution described in subsection (d) shall be decided without 
debate.


  (k) In the Senate, points of order under titles III and IV of the 
Congressional Budget Act of 1974 (including points of order under 
sections 302(c), 303(a), 306, and 401(b)(1)) are applicable to a 
conference report on the joint resolution or any amendments in 
disagreement thereto.


[[Page 993]]

resolution introduced under subsection (d), then the following procedures 
shall apply:
  (l) If, before the passage by the Senate of a joint resolution of the 
Senate introduced under subsection (d), the Senate receives from the 
House of Representatives a joint 

          (1) The joint resolution of the House of Representatives shall 

        not be referred to a committee.

          (2) With respect to a joint resolution introduced under 

        subsection (d) in the Senate--

                  (A) the procedure in the Senate shall be the same as 

                if no joint resolution had been received from the House; 

                but

                  (B)(i) the vote on final passage shall be on the joint 

                resolution of the House if it is identical to the joint 

                resolution then pending for passage in the Senate; or

                  (ii) if the joint resolution from the House is not 

                identical to the joint resolution then pending for 

                passage in the Senate and the Senate then passes the 

                Senate joint resolution, the Senate shall be considered 

                to have passed the House joint resolution as amended by 

                the text of the Senate joint resolution.

          (3) Upon disposition of the joint resolution received from the 

        House, it shall no longer be in order to consider the joint 


        resolution originated in the Senate.


SEC. 258C. SPECIAL RECONCILIATION PROCESS.

  (m) If the Senate receives from the House of Representatives a joint 
resolution introduced under subsection (d) after the Senate has disposed 
of a Senate originated joint resolution which is identical to the House 
passed joint resolution, the action of the Senate with regard to the 
disposition of the Senate originated joint resolution shall be deemed to 
be the action of the Senate with regard to the House originated joint 
resolution. If it is not identical to the House passed joint resolution, 
then the Senate shall be considered to have passed the joint resolution 
of the House as amended by the text of the Senate joint resolution.


[[Page 994]]

spect to alternatives to the order envisioned by such report insofar as 
such order affects laws within the jurisdiction of the committee.
  (a) Reporting of Resolutions and Reconciliation Bills and Resolutions, 
in the Senate.--(1) Committee alternatives to presidential order.--After 
the submission of an OMB sequestration update report under section 254 
that envisions a sequestration under section 252 or 253, each standing 
committee of the Senate may, not later than October 10, submit to the 
Committee on the Budget of the Senate information of the type described 
in section 301(d) of the Congressional Budget Act of 1974 with re-

  (2) Initial budget committee action.--After the submission of such a 
report, the Committee on the Budget of the Senate may, not later than 
October 15, report to the Senate a resolution. The resolution may affirm 
the impact of the order envisioned by such report, in whole or in part. 
To the extent that any part is not affirmed, the resolution shall state 
which parts are not affirmed and shall contain instructions to 
committees of the Senate of the type referred to in section 310(a) of 
the Congressional Budget Act of 1974, sufficient to achieve at least the 
total level of deficit reduction contained in those sections which are 
not affirmed.

  (3) Response of committees.--Committees instructed pursuant to 
paragraph (2), or affected thereby, shall submit their responses to the 
Budget Committee no later than 10 days after the resolution referred to 
in paragraph (2) is agreed to, except that if only one such Committee is 
so instructed such Committee shall, by the same date, report to the 
Senate a reconciliation bill or reconciliation resolution containing its 
recommendations in response to such instructions. A committee shall be 
considered to have complied with all instructions to it pursuant to a 
resolution adopted under paragraph (2) if it has made recommendations 
with respect to matters within its jurisdiction which would result in a 
reduction in the deficit at least equal to the total reduction directed 
by such instructions.


[[Page 995]]

  (4) Budget committee action.--Upon receipt of the recommendations 
received in response to a resolution referred to in paragraph (2), the 
Budget Committee shall report to the Senate a reconciliation bill or 
reconciliation resolution, or both, carrying out all such 
recommendations without any substantive revisions. In the event that a 
committee instructed in a resolution referred to in paragraph (2) fails 
to submit any recommendation (or, when only one committee is instructed, 
fails to report a reconciliation bill or resolution) in response to such 
instructions, the Budget Committee shall include in the reconciliation 
bill or reconciliation resolution reported pursuant to this subparagraph 
legislative language within the jurisdiction of the noncomplying 
committee to achieve the amount of deficit reduction directed in such 
instructions.

  (5) Point of order.--It shall not be in order in the Senate to 
consider any reconciliation bill or reconciliation resolution reported 
under paragraph (4) with respect to a fiscal year, any amendment 
thereto, or any conference report thereon if--

          (A) the enactment of such bill or resolution as reported;

          (B) the adoption and enactment of such amendment; or

          (C) the enactment of such bill or resolution in the form 

        recommended in such conference report,
would cause the amount of the deficit for such fiscal year to exceed the 
maximum deficit amount for such fiscal year, unless the low-growth 
report submitted under section 254 projects negative real economic 
growth for such fiscal year, or for each of any two consecutive quarters 
during such fiscal year.

  (6) Treatment of certain amendments.--In the Senate, an amendment 
which adds to a resolution reported under paragraph (2) an instruction 
of the type referred to in such paragraph shall be in order during the 
consideration of such resolution if such amendment would be in order but 
for the fact that it would be held to be non-germane on the basis that 
the instruction constitutes new matter.


  (7) Definition.--For purposes of paragraphs (1), (2), and (3), the 
term ``day'' shall mean any calendar day on which the Senate is in 
session.

  (b) Procedures.--(1) In general.--Except as provided in paragraph (2), 
in the Senate the provisions of sections 305 and 310 of the 
Congressional Budget Act of 1974 for the consideration of concurrent 
resolutions on the budget and conference reports thereon shall also 
apply to the consideration of resolutions, and reconciliation bills and 
reconciliation resolutions reported under this paragraph and conference 
reports thereon.

  (2) Limit on debate.--Debate in the Senate on any resolution reported 
pursuant to subsection (a)(2), and all amendments thereto and debatable 
motions and appeals in connection therewith, shall be limited to 10 
hours.

  (3) Limitation on amendments.--Section 310(d)(2) of the Congressional 
Budget Act shall apply to reconciliation bills and reconciliation 
resolutions reported under this subsection.


[[Page 996]]

the House, which is a companion to a reconciliation bill or reconciliation 
resolution of the Senate for the purposes of this subsection, shall be 
considered in the Senate pursuant to the provisions of this subsection.
  (4) Bills and resolutions received from the house.--Any bill or 
resolution received in the Senate from 


  (5) Definition.--For purposes of this subsection, the term 
``resolution'' means a simple, joint, or concurrent resolution.


* * * * *

  Sections 258, 258A, 258B, and 258C provide for reporting and 
consideration in the Senate but not in the House, where special rules 
might be adopted for the purpose.