US (United States) Code. Title 2. Chapter 20: Emergency powers to eliminate budget deficits

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-CITE-

2 USC CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET

DEFICITS 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

.

-HEAD-

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

-MISC1-

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

Sec.

900. Statement of budget enforcement through sequestration;

definitions.

(a) Omitted.

(b) General statement of budget enforcement through

sequestration.

(c) Definitions.

901. Enforcing discretionary spending limits.

(a) Enforcement.

(b) Adjustments to discretionary spending limits.

(c) Discretionary spending limit.

901a. Repealed.

902. Enforcing pay-as-you-go.

(a) Purpose.

(b) Sequestration.

(c) Eliminating a deficit increase.

(d) Estimates.

(e) Emergency legislation.

903. Enforcing deficit targets.

(a) Sequestration.

(b) Excess deficit; margin.

(c) Dividing sequestration.

(d) Defense.

(e) Non-defense.

(f) Baseline assumptions; part-year appropriations.

(g) Adjustments to maximum deficit amounts.

(h) Treatment of deposit insurance.

904. Reports and orders.

(a) Timetable.

(b) Submission and availability of reports.

(c) Sequestration preview reports.

(d) Notification regarding military personnel.

(e) Sequestration update reports.

(f) Final sequestration reports.

(g) Within-session sequestration reports and order.

(h) GAO compliance report.

(i) Low-growth report.

(j) Economic and technical assumptions.

905. Exempt programs and activities.

(a) Social security benefits and tier I railroad

retirement benefits.

(b) Veterans programs.

(c) Net interest.

(d) Earned income tax credit.

(e) Non-defense unobligated balances.

(f) Optional exemption of military personnel.

(g) Other programs and activities.

(h) Low-income programs.

(i) Identification of programs.

906. General and special sequestration rules.

(a) Automatic spending increases.

(b) Student loans.

(c) Treatment of foster care and adoption assistance

programs.

(d) Special rules for Medicare program.

(e) Community and migrant health centers, Indian

health services and facilities, and veteran's

medical care.

(f) Treatment of child support enforcement program.

(g) Federal pay.

(h) Treatment of Federal administrative expenses.

(i) Treatment of payments and advances made with

respect to unemployment compensation programs.

(j) Commodity Credit Corporation.

(k) Effects of sequestration.

907. The baseline.

(a) In general.

(b) Direct spending and receipts.

(c) Discretionary appropriations.

(d) Up-to-date concepts.

(e) Asset sales.

907a. Suspension in event of war or low growth.

(a) Procedures in event of low-growth report.

(b) Suspension of sequestration procedures.

(c) Restoration of sequestration procedures.

907b. Modification of Presidential order.

(a) Introduction of joint resolution.

(b) Procedures for consideration of joint

resolutions.

907c. Flexibility among defense programs, projects, and activities.

(a) Reductions beyond amount specified in

Presidential order.

(b) Base closures prohibited.

(c) Report and joint resolution required.

(d) Introduction of joint resolution.

(e) Form and title of joint resolution.

(f) Calendaring and consideration of joint resolution

in Senate.

(g) Debate of joint resolution; motions.

(h) Amendment of joint resolution.

(i) Vote on final passage of joint resolution.

(j) Appeal from decision of Chair.

(k) Conference reports.

(l) Resolution from other House.

(m) Senate action on House resolution.

907d. Special reconciliation process.

(a) Reporting of resolutions and reconciliation bills

and resolutions, in Senate.

(b) Procedures.

908, 909. Repealed.

SUBCHAPTER II - OPERATION AND REVIEW

921. Transferred.

922. Judicial review.

(a) Expedited review.

(b) Appeal to Supreme Court.

(c) Expedited consideration.

(d) Noncompliance with sequestration procedures.

(e) Timing of relief.

(f) Preservation of other rights.

(g) Economic data and assumptions.

-CITE-

2 USC SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS

OF MAXIMUM DEFICIT AMOUNT 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

.

-HEAD-

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-MISC1-

TERMINATION OF SUBCHAPTER

For termination of subchapter, see Effective and Termination

Dates note set out under section 900 of this title.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 922 of this title;

title 22 section 5853; title 38 section 113; title 39 section

2009a; title 42 section 300aa-15.

-CITE-

2 USC Sec. 900 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 900. Statement of budget enforcement through sequestration;

definitions

-STATUTE-

(a) Omitted

(b) General statement of budget enforcement through sequestration

This subchapter provides for budget enforcement as called for in

House Concurrent Resolution 84 (105th Congress, 1st session).

(c) Definitions

As used in this subchapter:

(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 (2 U.S.C. 622) and ''discretionary spending

limit'' shall mean the amounts specified in section 901 of this

title.

(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)(A) The term ''category'' means the subsets of discretionary

appropriations in section 901(c) of this title. 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 categorized only after

consultation with the committees (FOOTNOTE 1) 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.

(FOOTNOTE 1) So in original. Probably should be capitalized.

(B) The term ''highway category'' refers to the following

budget accounts or portions thereof that are subject to the

obligation limitations on contract authority set forth in the

Transportation Equity Act for the 21st Century:

(i) 69-8083-0-7-401 (Federal-Aid Highways).

(ii) 69-8020-0-7-401 (Highway Traffic Safety Grants).

(iii) 69-8048-0-7-401 (National Motor Carrier Safety

Program).

(iv) 69-8016-0-7-401 (Operations and Research NHTSA).

(C) The term ''mass transit category'' refers to the following

budget accounts or portions thereof that are subject to the

obligation limitations on contract authority provided in the

Transportation Equity Act for the 21st Century or for which

appropriations are provided pursuant to authorizations contained

in that Act (except that appropriations provided pursuant to

section 5338(h) of title 49, as amended by the Transportation

Equity Act for the 21st Century, shall not be included in this

category):

(i) 69-8191-0-7-401 (Mass Transit Capital Fund).

(ii) 69-8350-0-7-401 (Trust Fund Share of Expenses).

(iii) 69-1129-0-1-401 (Formula Grants).

(iv) 69-1120-0-1-401 (Administrative Expenses).

(v) 69-1136-0-1-401 (University Transportation Centers).

(vi) 69-1137-0-1-401 (Transit Planning and Research).

Such term also refers to the Washington Metropolitan Transit

Authority account (69-1128-0-1-401) only for fiscal year 1999

only for appropriations provided pursuant to authorizations

contained in section 14 of Public Law 96-184 and Public Law

101-551.

(D) Special rule. - (i) Any outlays in excess of the

discretionary spending limit set forth in section 901(c) of this

title for the highway or mass transit category, as adjusted, for

the budget year shall be considered nondefense category outlays

or discretionary category outlays.

(ii) If the obligation limitations for accounts in the highway

or mass transit category provided in an appropriation Act for a

fiscal year exceed the obligation limitations set forth in

section 8103 of the Transportation Equity Act for the 21st

Century for that year, as adjusted, the estimated outlays flowing

for each outyear from such excess obligations calculated pursuant

to clause (iii) shall be attributed to the discretionary category

in that outyear.

(iii) For purposes of clause (ii), outlays from excess

obligations shall be determined using the average of the spendout

rates for that category in the baseline.

(E) The term ''conservation spending category'' means

discretionary appropriations for conservation activities in the

following budget accounts or portions thereof providing

appropriations to preserve and protect lands, habitat, wildlife,

and other natural resources, to provide recreational

opportunities, and for related purposes:

(i) 14-5033 Bureau of Land Management Land Acquisition.

(ii) 14-5020 Fish and Wildlife Service Land Acquisition.

(iii) 14-5035 National Park Service Land Acquisition and

State Assistance.

(iv) 12-9923 Forest Service Land Acquisition.

(v) 14-5143 Fish and Wildlife Service Cooperative Endangered

Species Conservation Fund.

(vi) 14-5241 Fish and Wildlife Service North American

Wetlands Conservation Fund.

(vii) 14-1694 Fish and Wildlife Service State Wildlife

Grants.

(viii) 14-0804 United States Geological Survey Surveys,

Investigations, and Research, the State Planning Partnership

programs: Community/Federal Information Partnership, Urban

Dynamics, and Decision Support for Resource Management.

(ix) 12-1105 Forest Service State and Private Forestry, the

Forest Legacy Program, Urban and Community Forestry, and Smart

Growth Partnerships.

(x) 14-1031 National Park Service Urban Park and Recreation

Recovery program.

(xi) 14-5140 National Park Service Historic Preservation

Fund.

(xii) Youth Conservation Corps.

(xiii) 14-1114 Bureau of Land Management Payments in Lieu of

Taxes.

(xiv) Federal Infrastructure Improvement (as established in

title VIII of the Department of the Interior and Related

Agencies Appropriations Act, 2001).

(xv) 13-1460 NOAA Procurement Acquisition and Construction,

the National Marine Sanctuaries and the National Estuarine

Research Reserve Systems.

(xvi) 13-1450 NOAA Operations, Research, and Facilities, the

Coastal Zone Management Act programs, the National Marine

Sanctuaries, the National Estuarine Research Reserve Systems,

and Coral Restoration programs.

(xvii) 13-1451 NOAA Pacific Coastal Salmon Recovery.

(F) The term ''Federal and State Land and Water Conservation

Fund sub-category'' means discretionary appropriations for

activities in the accounts described in (E)(i)-(E)(iv) (FOOTNOTE

2) or portions thereof.

(FOOTNOTE 2) So in original. Probably should be preceded by

''subparagraph''.

(G) The term ''State and Other Conservation sub-category''

means discretionary appropriations for activities in the accounts

described in (E)(v)-(E)(ix), (FOOTNOTE 2) with the exception of

Urban and Community Forestry as described in (E)(ix), (FOOTNOTE

2) or portions thereof.

(H) The term ''Urban and Historic Preservation sub-category''

means discretionary appropriations for activities in the accounts

described in (E)(ix)-(E)(xii), (FOOTNOTE 2) with the exception of

Forest Legacy and Smart Growth Partnerships as described in

(E)(ix), (FOOTNOTE 2) or portions thereof.

(I) The term ''Payments in Lieu of Taxes sub-category'' means

discretionary appropriations for activities in the account

described in (E)(xiii) (FOOTNOTE 2) or portions thereof.

(J) The term ''Federal Deferred Maintenance sub-category''

means discretionary appropriations for activities in the account

described in (E)(xiv) (FOOTNOTE 2) or portions thereof.

(K) The term ''Coastal Assistance sub-category'' means

discretionary appropriations for activities in the accounts

described in (E)(xv)-(E)(xvii) (FOOTNOTE 2) or portions thereof.

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

section 907 of this title) 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, 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

of Congress, the fiscal year of the Government 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 subchapter, 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

(FOOTNOTE 3) 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.

(FOOTNOTE 3) So in original. Probably should be followed by

''of''.

(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 (2 U.S.C. 661 et seq.)), whether

physical or financial, owned in whole or in part by the United

States.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 250, as added Pub. L. 101-508,

title XIII, Sec. 13101(a), Nov. 5, 1990, 104 Stat. 1388-574, and

Pub. L. 99-177, title II, Sec. 250(c)(21), formerly Sec. 257(12),

as added Pub. L. 100-119, title I, Sec. 102(b)(7), Sept. 29, 1987,

101 Stat. 774, renumbered Sec. 250(c)(21), Pub. L. 101-508, title

XIII, Sec. 13101(b), Nov. 5, 1990, 104 Stat. 1388-589; amended Pub.

L. 105-33, title X, Sec. 10202, 10204(a)(2), 10208(a)(2), Aug. 5,

1997, 111 Stat. 697, 702, 708; Pub. L. 105-178, title VIII, Sec.

8101(c), (f), June 9, 1998, 112 Stat. 489; Pub. L. 105-206, title

IX, Sec. 9013(b), July 22, 1998, 112 Stat. 865; Pub. L. 106-291,

title VIII, Sec. 801(c), Oct. 11, 2000, 114 Stat. 1028.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

below.

-REFTEXT-

REFERENCES IN TEXT

House Concurrent Resolution 84, referred to in subsec. (b), is H.

Con. Res. 84, June 5, 1997, 111 Stat. 2710, which is not classified

to the Code.

The Balanced Budget Act of 1997, referred to in subsec.

(c)(4)(A), (17), is Pub. L. 105-33, Aug. 5, 1997, 111 Stat. 251.

For complete classification of this Act to the Code, see Tables.

The Transportation Equity Act for the 21st Century, referred to

in subsec. (c)(4)(B), (C), (D)(ii), is Pub. L. 105-178, June 9,

1998, 112 Stat. 107, as amended. Section 8103 of the Act is set

out as a note under section 901 of this title. For complete

classification of this Act to the Code, see section 1(a) of Pub. L.

105-178, set out as a Short Title of 1998 Amendment note under

section 101 of Title 23, Highways, and Tables.

Section 14 of Public Law 96-184, referred to in subsec.

(c)(4)(C), probably means section 14 of Pub. L. 91-143, as added by

Pub. L. 96-184, Sec. 2, Jan. 3, 1980, 93 Stat. 1320, which is not

classified to the Code.

Public Law 101-551, referred to in subsec. (c)(4)(C), is Pub. L.

101-551, Nov. 15, 1990, 104 Stat. 2733, which is not classified to

the Code.

The Department of the Interior and Related Agencies

Appropriations Act, 2001, referred to in subsec. (c)(4)(E)(xiv), is

Pub. L. 106-291, Oct. 11, 2000, 114 Stat. 922. Title VIII of the

Act amended this section and section 901 of this title. For

complete classification of this Act to the Code, see Tables.

The Congressional Budget Act of 1974, referred to in subsec.

(c)(19), is titles I through IX of Pub. L. 93-344, July 12, 1974,

88 Stat. 297, as amended. Title V of the Act, known as the Federal

Credit Reform Act of 1990, was added by Pub. L. 101-508, title

XIII, Sec. 13201(a), Nov. 5, 1990, 104 Stat. 1388-609, and is

classified generally to subchapter III (Sec. 661 et seq.) of

chapter 17A of this title. For complete classification of this Act

to the Code, see Short Title note set out under section 621 of this

title and Tables.

-COD-

CODIFICATION

Subsection (a) of this section, which provided a partial table of

contents for this subchapter was omitted from the Code.

Pub. L. 101-508, Sec. 13101(b), transferred section 257(12) of

Pub. L. 99-177, which was classified to section 907(12) of this

title, to subsec. (c)(21) (now (c)(19)) of this section.

-MISC3-

AMENDMENTS

2000 - Subsec. (c)(4)(E) to (K). Pub. L. 106-291 added subpars.

(E) to (K).

1998 - Subsec. (c)(4). Pub. L. 105-178, Sec. 8101(c), designated

existing provisions as subpar. (A) and added subpars. (B) to (D).

Subsec. (c)(4)(C). Pub. L. 105-178, Sec. 8101(f), as added by

Pub. L. 105-206, Sec. 9013(b), in introductory provisions,

substituted ''Century or'' for ''Century and'' and ''as amended by

the Transportation Equity Act for the 21st Century'' for ''as

amended by this section'', and inserted concluding provisions.

1997 - Subsec. (a). Pub. L. 105-33, Sec. 10204(a)(2),

10208(a)(2), amended table of contents. See Codification note

above.

Subsec. (b). Pub. L. 105-33, Sec. 10202(a), substituted present

text for former text which read as follows: ''This subchapter

provides for the enforcement of the deficit reduction assumed in

House Concurrent Resolution 310 (101st Congress, second session)

and the applicable deficit targets for fiscal years 1991 through

1995. Enforcement, as necessary, is to be implemented through

sequestration -

''(1) to enforce discretionary spending levels assumed in that

resolution (with adjustments as provided hereinafter);

''(2) to enforce the requirement that any legislation

increasing direct spending or decreasing revenues be on a

pay-as-you-go basis; and

''(3) to enforce the deficit targets specifically set forth in

the Congressional Budget and Impoundment Control Act of 1974

(with adjustments as provided hereinafter);

applied in the order set forth above.''

Subsec. (c)(1). Pub. L. 105-33, Sec. 10202(b)(1), struck out

''(but including the treatment specified in section 907(b)(3) of

this title of the Hospital Insurance Trust Fund) and the terms

'maximum deficit amount' '' before ''and 'discretionary'' and

substituted ''section 901'' for ''section 601 of that Act as

adjusted under sections 901 and 903''.

Subsec. (c)(4). Pub. L. 105-33, Sec. 10202(b)(2), added par. (4)

and struck out former par. (4) which read as follows: ''The term

'category' means:

''(A) For fiscal years 1991, 1992, and 1993, any of the

following subsets of discretionary appropriations: defense,

international, or domestic. Discretionary appropriations in each

of the three categories shall be those so designated in the joint

statement of managers accompanying the conference report on the

Omnibus Budget Reconciliation Act of 1990. New accounts or

activities shall be categorized in consultation with the

Committees on Appropriations and the Budget of the House of

Representatives and the Senate.

''(B) For fiscal years 1994 and 1995, all discretionary

appropriations.

Contributions to the United States to offset the cost of Operation

Desert Shield shall not be counted within any category.''

Subsec. (c)(6). Pub. L. 105-33, Sec. 10202(b)(3), added par. (6)

and struck out former par. (6) which read as follows: ''The term

'budgetary resources' means -

''(A) with respect to budget year 1991, new budget authority;

unobligated balances; new loan guarantee commitments or

limitations; new direct loan obligations, commitments, or

limitations; direct spending authority; and obligation

limitations; or

''(B) with respect to budget year 1992, 1993, 1994, or 1995,

new budget authority; unobligated balances; direct spending

authority; and obligation limitations.''

Subsec. (c)(9). Pub. L. 105-33, Sec. 10202(b)(4), substituted

''that budget submission that are not included with it'' for

''submission of the fiscal year 1992 budget that are not included

with a budget submission''.

Subsec. (c)(14). Pub. L. 105-33, Sec. 10202(b)(5), inserted

''first 4'' before ''fiscal years'' and struck out ''through fiscal

year 1995'' after ''the budget year''.

Subsec. (c)(17). Pub. L. 105-33, Sec. 10202(b)(6), (7),

redesignated par. (18) as (17), substituted ''Balanced Budget Act

of 1997'' for ''Omnibus Budget Reconciliation Act of 1990'', and

struck out former par. (17) which read as follows: ''For purposes

of sections 902 and 903 of this title, legislation enacted during

the second session of the One Hundred First Congress shall be

deemed to have been enacted before November 5, 1990.''

Subsec. (c)(18). Pub. L. 105-33, Sec. 10202(b)(6), (8),

redesignated par. (19) as (18) and substituted ''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.'' for ''of the Federal Deposit

Insurance Corporation and the funds it incorporates, the Resolution

Trust Corporation, the National Credit Union Administration and the

funds it incorporates, the Office of Thrift Supervision, the

Comptroller of the Currency Assessment Fund, and the RTC Office of

Inspector General.'' Former par. (18) redesignated (17).

Subsec. (c)(19). Pub. L. 105-33, Sec. 10202(b)(9), added par.

(19) and struck out former par. (19) which read as follows: ''The

sale of an asset means the sale to the public of any asset, whether

physical or financial, owned in whole or in part by the United

States. The term 'prepayment of a loan' means payments to the

United States made in advance of the schedules set by law or

contract when the financial asset is first acquired, such as the

prepayment to the Federal Financing Bank of loans guaranteed by the

Rural Electrification Administration. If a law or contract allows a

flexible payment schedule, the term 'in advance' shall mean in

advance of the slowest payment schedule allowed under such law or

contract.''

Pub. L. 105-33, Sec. 10202(b)(6), redesignated par. (21) as (19).

Former par. (19) redesignated (18).

Subsec. (c)(20). Pub. L. 105-33, Sec. 10202(b)(6), struck out

par. (20) which read as follows: ''The term 'composite outlay rate'

means the percent of new budget authority that is converted to

outlays in the fiscal year for which the budget authority is

provided and subsequent fiscal years, as follows:

''(A) For the international category, 46 percent for the first

year, 20 percent for the second year, 16 percent for the third

year, and 8 percent for the fourth year.

''(B) For the domestic category, 53 percent for the first year,

31 percent for the second year, 12 percent for the third year,

and 2 percent for the fourth year.''

Subsec. (c)(21). Pub. L. 105-33, Sec. 10202(b)(6), redesignated

par. (21) as (19).

1990 - Subsec. (c)(21). Pub. L. 101-508, Sec. 13101(b),

redesignated section 907(12) of this title as par. (21).

EFFECTIVE DATE OF 1998 AMENDMENT

Title IX of Pub. L. 105-206 effective simultaneously with

enactment of Pub. L. 105-178 and to be treated as included in Pub.

L. 105-178 at time of enactment, and provisions of Pub. L. 105-178,

as in effect on day before July 22, 1998, that are amended by title

IX of Pub. L. 105-206 to be treated as not enacted, see section

9016 of Pub. L. 105-206, set out as a note under section 101 of

Title 23, Highways.

EFFECTIVE AND TERMINATION DATES

Pub. L. 103-66, title XIV, Sec. 14002(c)(3)(A), Aug. 10, 1993,

107 Stat. 684, which provided that, notwithstanding section 275(b)

of Pub. L. 99-177, set out below, sections 900, 901, 902, and 904

to 908 of this title were to expire on Sept. 30, 1998, was repealed

by Pub. L. 105-33, title X, Sec. 10212(b), Aug. 5, 1997, 111 Stat.

712.

Section 275 of title II of Pub. L. 99-177, as amended by Pub. L.

100-119, title I, Sec. 106(c), title II, Sec. 210(b), Sept. 29,

1987, 101 Stat. 780, 787; Pub. L. 101-508, title XIII, Sec.

13112(b), 13208(b), Nov. 5, 1990, 104 Stat. 1388-608, 1388-619;

Pub. L. 105-33, title X, Sec. 10212(a), Aug. 5, 1997, 111 Stat.

712, provided that:

''(a) In General. -

''(1) Except as provided in paragraph (2) and in subsections

(b) and (c), this title and the amendments made by this title

(see Short Title note below) shall become effective on the date

of the enactment of this title (Dec. 12, 1985) and shall apply

with respect to fiscal years beginning after September 30, 1985.

''(2)(A) The amendment made by section 201(a)(2) (amending

section 622(2) of this title), and the amendment made by section

201(b) ( ( ) insofar as it relates to subsections (c), (f), and

(g) of section 302 of the Congressional Budget Act of 1974

(section 633(c), (f), and (g) of this title) and to subsections

(c), (d), and (g) of section 310 of that Act (section 641(c),

(d), and (g) of this title)), shall become effective April 15,

1986.

''(B) The amendment made by section 212 (amending section 652

of this title) shall become effective February 1, 1986.

''(b) Expiration. - Sections 251, 253, 258B, and 271(b) of this

Act (sections 901, 903, and 907c of this title and provisions set

out as a note below), and sections 1105(f) and 1106(c) of title 31,

United States Code, shall expire September 30, 2002. The remaining

sections of part C of this title (enacting this subchapter) shall

expire September 30, 2006.

''(c) OASDI Trust Funds. - The amendments made by part D

(amending section 911 of Title 42, The Public Health and Welfare,

and enacting provisions set out as a note under section 911 of

Title 42) shall apply as provided in such part.''

(Amendment of section 275(b)(2) of Pub. L. 99-177, set out above,

by section 13208(b) of Pub. L. 101-508 could not be executed

because of general amendment of section 275(b) by section 13112(b)

of Pub. L. 101-508.)

SHORT TITLE OF 1997 AMENDMENT

Section 10001(a) of title X of Pub. L. 105-33 provided that:

''This title (enacting sections 645 and 645a of this title,

amending this section, sections 601, 602, 622, 631 to 636, 639, 641

to 644, 651, 654, 661a, 661c to 661e, 691a, 691c, 691e, 901, 902,

904 to 907, and 922 of this title, section 1105 of Title 31, Money

and Finance, and section 911 of Title 42, The Public Health and

Welfare, repealing sections 652, 665 to 665e, 901a, and 908 of this

title and section 14212 of Title 42, enacting provisions set out as

notes under this section and section 902 of this title, amending

provisions set out as notes under this section and section 621 of

this title, and repealing provisions set out as notes under this

section and sections 621, 631, and 665 of this title) may be cited

as the 'Budget Enforcement Act of 1997'.''

SHORT TITLE OF 1990 AMENDMENT

Section 13001(a) of title XIII of Pub. L. 101-508 provided that:

''This title (enacting this section and sections 643, 661 to 661f,

665 to 665e, and 907a to 907d of this title, amending sections 601,

602, 622, 631 to 637, 639, 641, 642, 644, 651, 652, and 901 to 907

of this title, section 1022 of Title 15, Commerce and Trade,

sections 1105, 1341, and 1342 of Title 31, Money and Finance, and

section 401 of Title 42, The Public Health and Welfare,

transferring section 921 of this title to section 601(g) of this

title, repealing section 909 of this title, enacting provisions set

out as notes under this section and sections 621, 622, 632, 633,

665, and 902 of this title, and amending provisions set out as

notes under this section and sections 621 and 632 of this title)

may be cited as the 'Budget Enforcement Act of 1990'.''

SHORT TITLE OF 1987 AMENDMENT

Section 101(b) of title I of Pub. L. 100-119 provided that:

''This title (enacting section 908 of this title, amending sections

622, 632, 642, 901 to 907, and 922 of this title and section 1105

of Title 31, Money and Finance, enacting provisions set out as

notes under section 1395ww of Title 42, The Public Health and

Welfare, and amending provisions set out as notes under section 901

of this title and sections 1320b-8 and 1395ww of Title 42) may be

cited as the 'Balanced Budget and Emergency Deficit Control

Reaffirmation Act of 1987'.''

SHORT TITLE

Section 200(a) of title II of Pub. L. 99-177 provided that:

''This title (enacting this chapter and sections 654 to 656 of this

title, amending sections 602, 622, 631 to 642, and 651 to 653 of

this title, sections 1104 to 1106 and 1109 of Title 31, Money and

Finance, and section 911 of Title 42, The Public Health and

Welfare, repealing section 661 of this title, enacting provisions

set out as notes under this section and section 911 of Title 42,

and amending provisions set out as a note under section 621 of this

title) may be cited as the 'Balanced Budget and Emergency Deficit

Control Act of 1985'.''

HABITAT CONSERVATION ACTIVITIES CONSIDERED WITHIN COASTAL

ASSISTANCE SUB-CATEGORY

Pub. L. 107-77, title II, Nov. 28, 2001, 115 Stat. 775, provided

in part: ''That, hereafter, habitat conservation activities under

this heading (National Oceanic and Atmospheric Administration;

operations, research, and facilities) shall be considered to be

within the 'Coastal Assistance sub-category' in section

250(c)(4)(K) of the Balanced Budget and Emergency Deficit Control

Act of 1985, as amended (2 U.S.C. 900(c)(4)(K))''.

PURPOSE OF SUBTITLE B OF TITLE X OF PUB. L. 105-33

Section 10201 of title X of Pub. L. 105-33 provided that: ''The

purpose of this subtitle (subtitle B (Sec. 10201-10213) of title X

of Pub. L. 105-33, amending this section, sections 901, 902, 904 to

907, and 922 of this title, section 1105 of Title 31, Money and

Finance, and section 911 of Title 42, The Public Health and

Welfare, repealing sections 901a and 908 of this title and section

14212 of Title 42, enacting provisions set out as a note under

section 902 of this title, and amending and repealing provisions

set out as notes under this section) is to extend discretionary

spending limits and pay-as-you-go requirements.''

RESTRICTION ON ELIMINATION OR REDUCTION OF PROGRAMS RELATING TO

ENERGY AND WATER DEVELOPMENT

Pub. L. 102-377, title V, Sec. 503, Oct. 2, 1992, 106 Stat. 1342,

provided that: ''None of the programs, projects or activities as

defined in the reports accompanying this Act or subsequent Energy

and Water Development Appropriations Acts, may be eliminated or

disproportionately reduced due to the application of 'Savings and

Slippage', 'general reduction', or the provision of Public Law

99-177 (see Short Title note above) or Public Law 100-119 (see

section 213 of Pub. L. 100-119 set out below) unless such reports

expressly provide otherwise.''

WAIVERS AND SUSPENSIONS IN THE SENATE

Section 271(b) of Pub. L. 99-177, as amended by Pub. L. 100-119,

title II, Sec. 211, Sept. 29, 1987, 101 Stat. 787, provided that:

''Sections 301(i), 302(c), 302(f), 304(b), 310(d), 310(g), and

311(a) of the Congressional Budget Act of 1974 (sections 632(i),

633(c), 633(f), former 635(b), 641(d), 641(g), and 642(a) of this

title) may be waived or suspended in the Senate only by the

affirmative vote of three-fifths of the Members, duly chosen and

sworn. This subsection shall not apply to any joint resolution

reported or discharged pursuant to section 254(a) of this joint

resolution (section 904(a) of this title).''

(For effective and termination dates of section 271(b) of Pub. L.

99-177, see section 275(a)(1), (b) of Pub. L. 99-177, as amended,

set out as a note above.)

APPEALS OF RULINGS

Section 271(c) of Pub. L. 99-177, as added by Pub. L. 100-119,

title II, Sec. 210(a), Sept. 29, 1987, 101 Stat. 787, provided

that: ''An affirmative vote of three-fifths of the Members of the

Senate, duly chosen and sworn, shall be required in the Senate to

sustain an appeal of the ruling of the Chair on a point of order

raised under section 301(i), 302(c), 302(f), 304(b), 306, 310(d),

310(g), or 311(a) of the Congressional Budget Act of 1974 (sections

632(i), 633(c), 633(f), 635(b), 637, 641(d), 641(g), or 642(a) of

this title).''

(For effective date of section 271(c) of Pub. L. 99-177, see

section 275(a)(1) of Pub. L. 99-177, as amended, set out as a note

above.)

EXERCISE OF CONGRESSIONAL RULEMAKING POWER

Pub. L. 103-66, title XIV, Sec. 14004, Aug. 10, 1993, 107 Stat.

685, provided that: ''The Congress enacts the provisions of this

part (probably should be ''this title'', amending sections 665,

901, 902, and 904 of this title, enacting provisions set out as

notes under this section and section 902 of this title, and

amending provisions set out as notes under section 665 of this

title) -

''(1) as an exercise of the rule-making power of the Senate and

the House of Representatives, respectively, and as such these

provisions shall be considered as part of the rules of each

House, respectively, or of that House to which they specifically

apply, and such rules shall supersede other rules only to the

extent that they are inconsistent therewith; and

''(2) with full recognition of the constitutional right of

either House to change such rules (so far as relating to such

House) at any time, in the same manner, and to the same extent as

in the case of any other rule of such House.''

Section 13305 of title XIII of Pub. L. 101-508 provided that:

''This title and the amendments made by it (see Short Title of 1990

Amendment note above) are enacted by the Congress -

''(1) as an exercise of the rulemaking power of the House of

Representatives and the Senate, respectively, and as such they

shall be considered as a part of the rules of each House,

respectively, or of that House to which they specifically apply,

and such rules shall supersede other rules only to the extent

that they are inconsistent therewith; and

''(2) with full recognition of the constitutional right of

either House to change such rules (so far as relating to such

House) at any time, in the same manner, and to the same extent as

in the case of any other rule of such House.''

Section 213 of Pub. L. 100-119 provided that: ''This Act and the

amendments made by this Act (enacting sections 908 and 909 of this

title, amending sections 622, 632, 635, 636, 642, 683, 684, 687,

901 to 907, and 922 of this title and sections 1105 and 3101 of

Title 31, Money and Finance, enacting provisions set out as notes

under sections 602, 621, 686, and 901 of this title and section

1395ww of Title 42, The Public Health and Welfare, amending

provisions set out as notes under section 901 of this title and

sections 1320b-8 and 1395ww of Title 42, and repealing provisions

set out as a note under section 653 of this title), other than

those relating to the activities of the executive and judicial

branches of the Government, are enacted by Congress -

''(1) as an exercise of the rulemaking power of the House of

Representatives and the Senate, respectively, and as such they

shall be considered as part of the rules of each House,

respectively, or of that House to which they specifically apply,

and such rules shall supersede other rules only to the extent

that they are inconsistent therewith; and

''(2) with full recognition of the constitutional right of

either House to change such rules (so far as relating to such

House) at any time, in the same manner and to the same extent as

in the case of any other rule of such House.''

Section 271(d), formerly section 271(c), of Pub. L. 99-177, as

redesignated by Pub. L. 100-119, title II, Sec. 210(a), Sept. 29,

1987, 101 Stat. 787, provided that: ''The provisions of this title

(see Short Title note above), other than those relating to the

activities of the executive and judicial branches of the

Government, are enacted by the Congress -

''(1) as an exercise of the rulemaking power of the House of

Representatives and the Senate, respectively, and as such they

shall be considered as part of the rules of each House,

respectively, or of that House to which they specifically apply,

and such rules shall supersede other rules only to the extent

that they are inconsistent therewith; and

''(2) with full recognition of the constitutional right of

either House to change such rules (so far as relating to such

House) at any time, in the same manner and to the same extent as

in the case of any other rule of such House.''

RESTORATION OF TRUST FUND INVESTMENTS; FUNDS BORROWED OR NOT

INVESTED DURING DELAYS IN RAISING PUBLIC DEBT LIMIT

For provisions restoring various trust and retirement funds

administered by the Secretary of the Treasury to the position in

which they would have been if debt limit increases had been

delayed, including transferring amounts to the funds to compensate

those funds for current and prospective losses arising from

premature redemption of some long term securities when the debt

limit was reached, see notes set out under section 3101 of Title

31, Money and Finance.

-EXEC-

EX. ORD. NO. 12857. BUDGET CONTROL

Ex. Ord. No. 12857, Aug. 4, 1993, 58 F.R. 42181, provided:

By the authority vested in me as President of the United States

by the Constitution and the laws of the United States of America,

including section 1105 of title 31, United States Code, it is

hereby ordered as follows:

Section 1. Purpose. The purpose of this order is to create a

mechanism to monitor total costs of direct spending programs, and,

in the event that actual or projected costs exceed targeted levels,

to require that the budget address adjustments in direct spending.

Sec. 2. Establishment of Direct Spending Targets.

(a) In General. The initial direct spending targets for each of

fiscal years 1994 through 1997 shall equal total outlays for all

direct spending except net interest and deposit insurance as

determined by the Director of the Office of Management and Budget

(Director) under subsection (b).

(b) Initial Report by Director. (1) Not later than 30 days after

the date of enactment of the Omnibus Budget Reconciliation Act of

1993 (OBRA) (Aug. 10, 1993), the Director shall submit a report to

the Congress setting forth projected direct spending targets for

each of fiscal years 1994 through 1997.

(2) The Director's projections shall be based on legislation

enacted as of 5 days before the report is submitted under paragraph

(1). To the extent feasible, the Director shall use the same

economic and technical assumptions used in preparing the concurrent

resolution on the budget for fiscal year 1994 (H.Con.Res. 64).

(c) Adjustments. Direct spending targets shall be subsequently

adjusted by the Director under Section 6.

Sec. 3. Annual Review of Direct Spending and Receipts by

President. As part of each budget submitted under section 1105(a)

of title 31, United States Code, the Director shall provide an

annual review of direct spending and receipts, which shall include

(1) information supporting the adjustment of direct spending

targets pursuant to Section 6, (2) information on total outlays for

programs covered by the direct spending targets, including actual

outlays for the prior fiscal year and projected outlays for the

current fiscal year and the 5 succeeding fiscal years, and (3)

information on the major categories of Federal receipts, including

a comparison between the levels of those receipts and the levels

projected as of the date of enactment of OBRA (Aug. 10, 1993).

Sec. 4. Special Direct Spending Message by President. (a)

Trigger. In the event that the information submitted under Section

3 indicates -

(1) that actual outlays for direct spending in the prior fiscal

year exceeded the applicable direct spending target, or

(2) that outlays for direct spending for the current or budget

year are projected to exceed the applicable direct spending

targets, the Director shall include in the budget a special direct

spending message meeting the requirements of subsection (b) of this

Section.

(b) Contents. (1) The special direct spending message shall

include:

(A) An explanation of any adjustments to the direct spending

targets pursuant to Section 6.

(B) An analysis of the variance in direct spending over the

adjusted direct spending targets.

(C) The President's recommendations for addressing the direct

spending overages, if any, in the prior, current, or budget year.

(2) The recommendations may consist of any of the following:

(A) Proposed legislative changes to reduce outlays, increase

revenues, or both, in order to recoup or eliminate the overage for

the prior, current, and budget years in the current year, the

budget year, and the 4 out-years.

(B) Proposed legislative changes to reduce outlays, increase

revenues, or both, in order to recoup or eliminate part of the

overage for the prior, current, and budget year in the current

year, the budget year, and the 4 out-years, accompanied by a

finding by the President that, because of economic conditions or

for other specified reasons, only some of the overage should be

recouped or eliminated by outlay reductions or revenue increases,

or both.

(C) A proposal to make no legislative changes to recoup or

eliminate any overage, accompanied by a finding by the President

that, because of economic conditions or for other specified

reasons, no legislative changes are warranted.

(3) Any proposed legislative change under paragraph (2) to reduce

outlays may include reductions in direct spending or in the

discretionary spending limits under section 601 of the

Congressional Budget Act of 1974 (former 2 U.S.C. 665).

Sec. 5. Proposed Special Direct Spending Resolution. If the

President recommends reductions consistent with subsection

(Section) 4 (b)(2)(A) or (B), the special direct spending message

shall include the text of a special direct spending resolution

implementing the President's recommendations through reconciliation

directives instructing the appropriate committees of the House of

Representatives and Senate to determine and recommend changes in

laws within their jurisdictions to reduce outlays or increase

revenues by specified amounts. If the President recommends no

reductions pursuant to Section 4 (b)(2)(C), the special direct

spending message shall include the text of a special resolution

concurring in the President's recommendation of no legislative

action.

Sec. 6. Adjustments to Direct Spending Targets.

(a) Required Annual Adjustments. Prior to the submission of the

President's budget for each of fiscal years 1995 through 1997, the

Director shall adjust the direct spending targets in accordance

with this Section. Any such adjustments shall be reflected in the

targets used in the report under Section 3 and message (if any)

under Section 4.

(b) Adjustment for Increases in Beneficiaries. (1) The Director

shall adjust the direct spending targets for increases (if any) in

actual or projected numbers of beneficiaries under direct spending

programs for which the number of beneficiaries is a variable in

determining costs.

(2) The adjustment shall be made by -

(A) computing, for each program under paragraph (1), the

percentage change between (i) the annual average number of

beneficiaries under that program (including actual numbers of

beneficiaries for the prior fiscal year and projections for the

budget and subsequent fiscal years) to be used in the President's

budget with which the adjustments will be submitted, and (ii) the

annual average number of beneficiaries used in the adjustments made

by the Director in the previous year (or, in the case of

adjustments made in 1994, the annual average number of

beneficiaries used in the Director's initial report under Section

2(b));

(B) applying the percentages computed under subparagraph (A) to

the projected levels of outlays for each program consistent with

the direct spending targets in effect immediately prior to the

adjustment; and

(C) adding the results of the calculations required by

subparagraph (B) to the direct spending targets in effect

immediately prior to the adjustment.

(3) No adjustment shall be made for any program for a fiscal year

in which the percentage increase computed under paragraph (2)(A) is

less than or equal to zero.

(c) Adjustments for Revenue Legislation. The Director shall

adjust the targets as follows:

(1) they shall be increased by the amount of any increase in

receipts; or

(2) they shall be decreased by the amount of any decrease in

receipts, resulting from receipts legislation enacted after the

date of enactment of OBRA (Aug. 10, 1993), except legislation

enacted in response to the message transmitted under Section 4.

(d) Adjustments To Reflect Congressional Decisions. Upon

enactment of a reconciliation bill enacted in response to a message

submitted under Section 4, the Director shall adjust direct

spending targets for the current year, the budget year, and each

outyear through 1997 by -

(1) increasing the target for the current year and the budget

year by the amount stated for that year in that reconciliation bill

(but if a separate vote was required by Congressional rules, only

if that vote has occurred); and

(2) decreasing the target for the current, budget, and outyears

through 1997 by the amount of reductions in direct spending enacted

in that reconciliation bill.

(e) Designated Emergencies. The Director shall adjust the targets

to reflect the costs of legislation that is designated as an

emergency by Congress and the President under section 252(e) of the

Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.

902(e)).

Sec. 7. Relationship to Balanced Budget and Emergency Deficit

Control Act. Recommendations pursuant to Section 4 shall include a

provision specifying that reductions in outlays or increases in

receipts resulting from that legislation shall not be taken into

account for purposes of any budget enforcement procedures under the

Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.

900 et seq.).

Sec. 8. Estimating Margin. For any fiscal year for which the

overage is less than one-half of 1 percent of the direct spending

target for that year, the procedures set forth in Section 4 shall

not apply.

Sec. 9. Means-Tested Programs. In making recommendations under

Section 4, the Director shall seriously consider all other

alternatives before proposing reductions in means-tested programs.

Sec. 10. Effective Date. This order shall take effect upon

enactment of OBRA (Aug. 10, 1993). This order shall apply to direct

spending targets for fiscal years 1994 through 1997 and shall

expire at the end of fiscal year 1997. William J. Clinton.

EX. ORD. NO. 12858. DEFICIT REDUCTION FUND

Ex. Ord. No. 12858, Aug. 4, 1993, 58 F.R. 42185, provided:

By the authority vested in me as President of the United States

by the Constitution and the laws of the United States of America,

including sections 1104 and 1105 of title 31, United States Code,

it is hereby ordered as follows:

Section 1. Purpose. It is essential to guarantee that the net

deficit reduction achieved by the Omnibus Budget Reconciliation Act

of 1993 (Pub. L. 103-66, see Tables for classification) is

dedicated exclusively to reducing the deficit.

Sec. 2. Deficit Reduction Fund.

(a) Establishment of the Fund. There is established a separate

account in the Treasury, known as the Deficit Reduction Fund, which

shall receive the net deficit reduction achieved by the Omnibus

Budget Reconciliation Act of 1993 (Pub. L. 103-66, see Tables for

classification) as called for in subsection (b) of this order.

(b) Amounts in Fund. Beginning upon enactment of the Omnibus

Budget Reconciliation Act of 1993 (Aug. 10, 1993), the Deficit

Reduction Fund shall receive any increases in total revenues

resulting from enactment of such Act on a daily basis. In

addition, on a daily basis, the Secretary of the Treasury shall

enter into such account an amount equivalent to the net deficit

reduction achieved as a result of all spending reductions resulting

from such Act. The cumulative fiscal year amounts for the

combination of all such revenue increases and spending reductions

shall be equal to:

(1) for fiscal year 1994, $60,292,000,000;

(2) for fiscal year 1995, $70,437,000,000;

(3) for fiscal year 1996, $92,061,000,000;

(4) for fiscal year 1997, $125,881,000,000;

(5) for fiscal year 1998, $146,939,000,000.

Within 30 days of enactment of the Omnibus Budget Reconciliation

Act of 1993, the foregoing amounts may be adjusted by the Director

of the Office of Management and Budget to reflect the final scoring

of such Act.

(c) Status of Amounts in Fund. (i) The amounts in the Deficit

Reduction Fund shall be used exclusively to redeem maturing debt

obligations of the Treasury of the United States held by foreign

governments in the amounts specified in subsection (b).

(ii) The amounts in the Deficit Reduction Fund as set forth in

subsection (b) that result from increases in total revenues and

spending reductions shall not be available for new spending or to

finance measures that increase the deficit for purposes of budget

enforcement procedures under the Balanced Budget and Emergency

Deficit Control Act of 1985 (2 U.S.C. 901-922 (900-922)).

(d) Effect on Other Funds. Establishment of and transfers to the

Deficit Reduction Fund shall not affect trust fund transfers that

may be authorized or required by provisions of the Omnibus

Reconciliation Act of 1993 or any other provision of law.

Sec. 3. Requirement for the President To Report Annually on the

Status of the Fund. The Director of the Office of Management and

Budget shall include in the President's Budget transmitted under

section 1105 of title 31, United States Code, information about the

Deficit Reduction Fund, including a separate statement of amounts

in and Federal debt redeemed by that Fund.

Sec. 4. Implementation. The Secretary of the Treasury and the

Director of the Office of Management and Budget shall each take

such actions as may be necessary, within their respective

authorities, promptly to carry out this order.

Sec. 5. Effective Date. This order shall take effect upon

enactment of the Omnibus Budget Reconciliation Act of 1993 (Aug.

10, 1993). William J. Clinton.

-SECREF-

ACT REFERRED TO IN OTHER SECTIONS

The Balanced Budget and Emergency Deficit Control Act of 1985

(see Short Title note above) is referred to in sections 643, 691c

of this title; title 7 section 1446; title 10 section 2814; title

12 section 2250; title 21 section 379g; title 22 sections 2295b,

3751, 5857; title 25 section 2010; title 33 section 2736; title 38

section 113; title 39 section 2009a; title 42 sections 1382, 8621,

11303, 14211; title 48 section 1469a-1.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 633, 661a of this title;

title 45 section 821; title 50 App. section 1989b-9.

-CITE-

2 USC Sec. 901 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 901. Enforcing discretionary spending limits

-STATUTE-

(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 902 of this title and section 903 of this title, 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 that the health programs set forth in

section 906(e) of this title 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 905(f) of this title,

each account within subfunctional category 051 (other than those

military personnel accounts for which the authority provided

under section 905(f) of this title 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 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 conformance with scorekeeping guidelines

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

(A) Concepts and definitions. - When the President submits the

budget under section 1105 of title 31, 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 (FOOTNOTE 1) 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.

(FOOTNOTE 1) So in original. Probably should be capitalized.

(B) Adjustment to align highway spending with revenues. - (i)

When the President submits the budget under section 1105 of title

31, OMB shall calculate and the budget shall include adjustments

to the highway category for the budget year and each outyear as

provided in clause (ii)(I)(cc).

(ii)(I)(aa) OMB shall take the actual level of highway receipts

for the year before the current year and subtract the sum of the

estimated level of highway receipts in subclause (II) plus any

amount previously calculated under item (bb) for that year.

(bb) OMB shall take the current estimate of highway receipts

for the budget year and subtract the estimated level of receipts

for that year.

(cc) OMB shall take the sum of the amounts calculated under

items (aa) and (bb), add that sum to the amount of obligations

set forth in section 8103 of the Transportation Equity Act for

the 21st Century for the highway category for the budget year,

and calculate the outlay change resulting from that change in

obligations relative to that amount for the budget year and each

outyear using current estimates. After making the calculation

under the preceding sentence, OMB shall adjust the amount of

obligations set forth in that section for the budget year by

adding the sum of the amounts calculated under items (aa) and

(bb).

(II) The estimated level of highway receipts for the purposes

of this clause are -

(aa) for fiscal year 1998, $22,164,000,000;

(bb) for fiscal year 1999, $32,619,000,000;

(cc) for fiscal year 2000, $28,066,000,000;

(dd) for fiscal year 2001, $28,506,000,000;

(ee) for fiscal year 2002, $28,972,000,000; and

(ff) for fiscal year 2003, $29,471,000,000.

(III) In this clause, the term ''highway receipts'' means the

governmental receipts credited to the highway account of the

Highway Trust Fund.

(C)(i) In addition to the adjustment required by subparagraph

(B), when the President submits the budget under section 1105 of

title 31 for fiscal years (FOOTNOTE 2) 2000, 2001, 2002, or 2003,

OMB shall calculate and the budget shall include for the budget

year and each outyear an adjustment to the limits on outlays for

the highway category and the mass transit category equal to -

(FOOTNOTE 2) So in original. Probably should be ''year''.

(I) the outlays for the applicable category calculated

assuming obligation levels consistent with the estimates

prepared pursuant to subparagraph (D), as adjusted, using

current technical assumptions; minus

(II) the outlays for the applicable category set forth in the

subparagraph (D) estimates, as adjusted.

(ii) The adjustment made pursuant to clause (i) in the fiscal

years 2002 and 2003 budget submissions of the President under

section 1105(a) of title 31 shall not exceed 4 percent plus

cumulative carryovers. In this clause, the term ''cumulative

carryovers'' means the total of each amount by which outlays for

the highway and mass transit category for any fiscal year are

less than the outlay limit for that category, as adjusted, for

that year less any amount of carryover used in the previous year.

(D)(i) When OMB and CBO submit their final sequester report for

fiscal year 1999, that report shall include an estimate of the

outlays for each of the categories that would result in fiscal

years 2000 through 2003 from obligations at the levels specified

in section 8103 of the Transportation Equity Act for the 21st

Century using current assumptions.

(ii) When the President submits the budget under section 1105

of title 31 for fiscal years (FOOTNOTE 2) 2000, 2001, 2002, or

2003, OMB shall adjust the estimates made in clause (i) by the

adjustments by subparagraphs (B) and (C).

(E) OMB shall consult with the Committees on the Budget and

include a report on adjustments under subparagraphs (B) and (C)

in the preview report.

(2) Sequestration reports

When OMB submits a sequestration report under section 904(e),

(f), or (g) of this title 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 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 emergency requirements 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) of this section, 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 2000, $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

401(g)(1)(A) of title 42 and reviews and redeterminations

authorized under section 211 of the Personal Responsibility

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 286e-2 of title

22, 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 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.

(G) Adoption incentive payments

Whenever a bill or joint resolution making appropriations for

fiscal year 1999, 2000, 2001, 2002, or 2003 is enacted that

specifies an amount for adoption incentive payments pursuant to

this subchapter for the Department of Health and Human Services

-

(i) the adjustments for new budget authority shall be the

amounts of new budget authority provided in that measure for

adoption incentive payments, but not to exceed $20,000,000;

and

(ii) the adjustment for outlays shall be the additional

outlays flowing from such amount.

(H) Conservation spending

(i) If a bill or resolution making appropriations for any

fiscal year appropriates an amount for the conservation

spending category that is less than the limit for the

conservation spending category as specified in subsection (c)

of this section, then the adjustment for new budget authority

and outlays for the following fiscal year for that category

shall be the amount of new budget authority and outlays that

equals the difference between the amount appropriated and the

amount of that category specified in subsection (c) of this

section.

(ii) If a bill or resolution making appropriations for any

fiscal year appropriates an amount for any conservation

spending sub-category that is less than the limit for that

conservation spending sub-category as specified in subsections

(c)(11)-(c)(16) of this section, then the adjustment for new

budget authority for the following fiscal year for that

sub-category shall be the amount of new budget authority that

equals the difference between the amount appropriated and the

amount of that sub-category specified in subsection

(c)(11)-(c)(16) of this section.

(iii) The total amount provided for any conservation activity

within the conservation spending category may not exceed any

authorized ceiling for that activity.

(c) Discretionary spending limit

As used in this subchapter, 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;

(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;

(C) for the violent crime reduction category: $5,800,000,000

in new budget authority and $4,953,000,000 in outlays;

(D) for the highway category: $21,885,000,000 in outlays; and

(E) for the mass transit category: $4,401,000,000 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;

(B) for the violent crime reduction category: $4,500,000,000

in new budget authority and $5,554,000,000 in outlays;

(C) for the highway category: $24,436,000,000 in outlays; and

(D) for the mass transit category: $4,761,000,000 in outlays;

(5) with respect to fiscal year 2001 -

(A) for the discretionary category: $637,000,000,000 in new

budget authority and $612,695,000,000 in outlays;

(B) for the highway category: $26,204,000,000 in outlays; and

(C) for the mass transit category: $5,190,000,000 in outlays;

(6) with respect to fiscal year 2002 -

(A) for the discretionary category: $681,441,000,000 in new

budget authority and $670,206,000,000 in outlays;

(B) for the highway category: $26,977,000,000 in outlays;

(C) for the mass transit category: $5,709,000,000 in outlays;

and

(D) for the conservation spending category: $1,760,000,000,

in new budget authority and $1,473,000,000 in outlays;

(7) with respect to fiscal year 2003 -

(A) for the highway category: $27,728,000,000 in outlays;

(B) for the mass transit category: $6,256,000,000 in outlays;

and

(C) for the conservation spending category: $1,920,000,000,

in new budget authority and $1,872,000,000 in outlays;

(8) with respect to fiscal year 2004 for the conservation

spending category: $2,080,000,000, in new budget authority and

$2,032,000,000 in outlays;

(9) with respect to fiscal year 2005 for the conservation

spending category: $2,240,000,000, in new budget authority and

$2,192,000,000 in outlays;

(10) with respect to fiscal year 2006 for the conservation

spending category: $2,400,000,000, in new budget authority and

$2,352,000,000 in outlays;

(11) with respect to each fiscal year 2002 through 2006 for the

Federal and State Land and Water Conservation Fund sub-category

of the conservation spending category: $540,000,000 in new budget

authority and the outlays flowing therefrom;

(12) with respect to each fiscal year 2002 through 2006 for the

State and Other Conservation sub-category of the conservation

spending category: $300,000,000 in new budget authority and the

outlays flowing therefrom;

(13) with respect to each fiscal year 2002 through 2006 for the

Urban and Historic Preservation sub-category of the conservation

spending category: $160,000,000 in new budget authority and the

outlays flowing therefrom;

(14) with respect to each fiscal year 2002 through 2006 for the

Payments in Lieu of Taxes sub-category of the conservation

spending category: $50,000,000 in new budget authority and the

outlays flowing therefrom;

(15) with respect to each fiscal year 2002 through 2006 for the

Federal Deferred Maintenance sub-category of the conservation

spending category: $150,000,000 in new budget authority and the

outlays flowing therefrom;

(16) with respect to fiscal year 2002 for the Coastal

Assistance sub-category of the conservation spending category:

$440,000,000 in new budget authority and the outlays flowing

therefrom; with respect to fiscal year 2003 for the Coastal

Assistance sub-category of the conservation spending category:

$480,000,000 in new budget authority and the outlays flowing

therefrom; with respect to fiscal year 2004 for the Coastal

Assistance sub-category of the conservation spending category:

$520,000,000 in new budget authority and the outlays flowing

therefrom; with respect to fiscal year 2005 for the Coastal

Assistance sub-category of the conservation spending category:

$560,000,000 in new budget authority and the outlays flowing

therefrom; and with respect to fiscal year 2006 for the Coastal

Assistance sub-category of the conservation spending category:

$600,000,000 in new budget authority and the outlays flowing

therefrom;

as adjusted in strict conformance with subsection (b) of this

section.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 251, Dec. 12, 1985, 99 Stat. 1063;

Pub. L. 100-119, title I, Sec. 102(a), Sept. 29, 1987, 101 Stat.

754; Pub. L. 100-203, title VIII, Sec. 8003(f), Dec. 22, 1987, 101

Stat. 1330-282; Pub. L. 101-508, title XIII, Sec. 13101(a), (e)(2),

Nov. 5, 1990, 104 Stat. 1388-577, 1388-593; Pub. L. 103-66, title

XIV, Sec. 14002(c)(1), Aug. 10, 1993, 107 Stat. 683; Pub. L.

103-87, title V, Sec. 571, Sept. 30, 1993, 107 Stat. 971; Pub. L.

103-306, title V, Sec. 562, Aug. 23, 1994, 108 Stat. 1649; Pub. L.

103-354, title I, Sec. 119(d)(1), Oct. 13, 1994, 108 Stat. 3208;

Pub. L. 104-121, title I, Sec. 103(b), Mar. 29, 1996, 110 Stat.

848; Pub. L. 104-193, title II, Sec. 211(d)(5)(B), Aug. 22, 1996,

110 Stat. 2191; Pub. L. 104-208, div. A, title I, Sec. 101(c)

(title V, Sec. 577), Sept. 30, 1996, 110 Stat. 3009-121, 3009-169;

Pub. L. 105-33, title X, Sec. 10203(a), (b), Aug. 5, 1997, 111

Stat. 698, 701; Pub. L. 105-89, title II, Sec. 201(b)(1), Nov. 19,

1997, 111 Stat. 2125; Pub. L. 105-178, title VIII, Sec. 8101(a),

(d), June 9, 1998, 112 Stat. 488, 490; Pub. L. 106-291, title VIII,

Sec. 801(a), (b), Oct. 11, 2000, 114 Stat. 1026, 1027; Pub. L.

106-429, Sec. 101(a) (title VII, Sec. 701(a)), Nov. 6, 2000, 114

Stat. 1900, 1900A-64; Pub. L. 107-117, div. C, Sec. 101(a), Jan.

10, 2002, 115 Stat. 2341.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-REFTEXT-

REFERENCES IN TEXT

Section 8103 of the Transportation Equity Act for the 21st

Century, referred to in subsec. (b)(1)(B)(ii)(I)(cc), (D)(i), is

section 8103 of Pub. L. 105-178, which is set out as a note below.

Section 211 of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996, referred to in subsec.

(b)(2)(C)(ii)(I), is section 211 of Pub. L. 104-193, which amended

this section, section 665e of this title, and section 1382c of

Title 42, The Public Health and Welfare, enacted provisions set out

as a note under section 1382c of Title 42, and amended provisions

set out as a note under section 401 of Title 42.

-COD-

CODIFICATION

Pub. L. 101-508, Sec. 13101(e)(2), redesignated former subsec.

(a)(6)(I) of this section as section 257(e) of Pub. L. 99-177,

which is classified to section 907(e) of this title.

-MISC3-

AMENDMENTS

2002 - Subsec. (c)(6)(A). Pub. L. 107-117, Sec. 101(a)(1), added

subpar. (A) and struck out former subpar. (A) which read as

follows: ''for the discretionary category: $551,074,000,000 in new

budget authority and $560,799,000,000 in outlays;''.

Subsec. (c)(6)(C). Pub. L. 107-117, Sec. 101(a)(2), struck out

second ''and'' at end.

Subsec. (c)(6)(D). Pub. L. 107-117, Sec. 101(a)(3), substituted

''$1,473,000,000'' for ''$1,232,000,000''.

2000 - Subsec. (b)(2)(H). Pub. L. 106-291, Sec. 801(b), added

subpar. (H).

Subsec. (c)(5)(A). Pub. L. 106-429 added subpar. (A) and struck

out former subpar. (A) which read as follows: ''for the

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

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

Subsec. (c)(6)(D). Pub. L. 106-291, Sec. 801(a)(1), added subpar.

(D).

Subsec. (c)(7)(C). Pub. L. 106-291, Sec. 801(a)(2), added subpar.

(C).

Subsec. (c)(8) to (16). Pub. L. 106-291, Sec. 801(a)(3), added

pars. (8) to (16).

1998 - Subsec. (b)(1). Pub. L. 105-178, Sec. 8101(d), designated

existing provisions as subpar. (A), inserted heading, and added

subpars. (B) to (E).

Subsec. (c)(3)(D), (E). Pub. L. 105-178, Sec. 8101(a)(1), added

subpars. (D) and (E).

Subsec. (c)(4)(C), (D). Pub. L. 105-178, Sec. 8101(a)(2), added

subpars. (C) and (D).

Subsec. (c)(5). Pub. L. 105-178, Sec. 8101(a)(3), substituted a

dash for comma after ''2001'', designated remaining provisions as

subpar. (A), realigned margins, struck out ''and'' at end, and

added subpars. (B) and (C).

Subsec. (c)(6). Pub. L. 105-178, Sec. 8101(a)(4), substituted a

dash for comma after ''2002'', designated remaining provisions as

subpar. (A), realigned margins, and added subpars. (B) and (C).

Subsec. (c)(7). Pub. L. 105-178, Sec. 8101(a)(5), added par. (7).

1997 - Subsec. (a). Pub. L. 105-33, Sec. 10203(a)(1), struck out

''Fiscal Years 1991-1998'' before ''Enforcement'' in heading.

Subsec. (a)(3). Pub. L. 105-33, Sec. 10203(a)(2), substituted

''section 905(f)'' for ''section 905(h)'' in two places.

Subsec. (a)(7). Pub. L. 105-33, Sec. 10203(a)(3), added par. (7)

and struck out heading and text of former par. (7). Text read as

follows: ''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. Within

5 calendar days after the 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 two estimates. For purposes of this

paragraph, amounts provided by annual appropriations shall include

any new budget authority and outlays for those years in accounts

for which funding is provided in that legislation that result from

previously enacted legislation. Those OMB estimates shall be made

using current economic and technical assumptions. OMB shall use

the OMB estimates transmitted to the Congress under this paragraph

for the purposes of this subsection. OMB and CBO shall prepare

estimates under this paragraph in conformance with scorekeeping

guidelines determined after consultation among the House and Senate

Committees on the Budget, CBO, and OMB.''

Subsec. (b). Pub. L. 105-33, Sec. 10203(a)(4), added subsec. (b)

and struck out heading and text of former subsec. (b) which

provided that when the President submitted the budget for a budget

year from 1992 to 1998, OMB was to calculate, and the budget was to

include, adjustments to discretionary spending limits reflecting

certain enumerated factors and provided that when OMB submitted a

sequestration report for a fiscal year from 1991 to 1998, OMB was

to calculate, and the sequestration report and subsequent budgets

were to include, adjustments to discretionary spending limits

reflecting certain enumerated factors.

Subsec. (b)(2)(G). Pub. L. 105-89 added subpar. (G).

Subsec. (c). Pub. L. 105-33, Sec. 10203(b), added subsec. (c).

1996 - Subsec. (b)(2)(G). Pub. L. 104-208 substituted ''fiscal

years 1994, 1995, and 1997'' for ''fiscal year 1994 and 1995'' in

two places.

Subsec. (b)(2)(H). Pub. L. 104-121 added subpar. (H).

Subsec. (b)(2)(H)(i). Pub. L. 104-193, Sec. 211(d)(5)(B)(i),

substituted ''$175,000,000'' for ''$25,000,000'' and

''$310,000,000'' for ''$160,000,000'' in subcl. (II), and

''$245,000,000'' for ''$145,000,000'' and ''$470,000,000'' for

''$370,000,000'' in subcl. (III).

Subsec. (b)(2)(H)(ii)(I). Pub. L. 104-193, Sec. 211(d)(5)(B)(ii),

amended subcl. (I) generally. Prior to amendment, subcl. (I) read

as follows: ''the term 'continuing disability reviews' has the

meaning given such term by section 401(g)(1)(A) of title 42;''.

1994 - Subsec. (b)(2)(D)(i). Pub. L. 103-354 inserted at end

''This subparagraph shall not apply to appropriations to cover

agricultural crop disaster assistance.''

Subsec. (b)(2)(G). Pub. L. 103-306 substituted ''1994 and 1995''

for ''1994'' in two places.

1993 - Subsec. (a). Pub. L. 103-66, Sec. 14002(c)(1)(A),

substituted ''1998'' for ''1995'' in heading.

Subsec. (b)(1). Pub. L. 103-66, Sec. 14002(c)(1)(B)(i), in

introductory provisions, substituted ''1995, 1996, 1997, or 1998''

for ''or 1995'' and ''outyear through 1998'' for ''outyear through

1995''.

Subsec. (b)(1)(B)(iii). Pub. L. 103-66, Sec. 14002(c)(1)(B)(ii),

added cl. (iii).

Subsec. (b)(2). Pub. L. 103-66, Sec. 14002(c)(1)(B)(iii), in

introductory provisions, substituted ''1995, 1996, 1997, or 1998''

for ''or 1995'' and ''year through 1998'' for ''year through

1995''.

Subsec. (b)(2)(D)(i). Pub. L. 103-66, Sec. 14002(c)(1)(B)(iv),

substituted ''for any fiscal year,'' for ''for fiscal year 1991,

1992, 1993, 1994, or 1995,''.

Subsec. (b)(2)(E)(iv). Pub. L. 103-66, Sec. 14002(c)(1)(B)(v),

added cl. (iv).

Subsec. (b)(2)(F). Pub. L. 103-66, Sec. 14002(c)(1)(B)(vi),

inserted before period at end '', and not to exceed 0.5 percent of

the adjusted descretionary (sic) spending limit on outlays for the

fiscal year in fiscal year 1996, 1997, or 1998''.

Subsec. (b)(2)(G). Pub. L. 103-87 added subpar. (G).

1990 - Pub. L. 101-508, Sec. 13101(a), amended section generally,

substituting subsecs. (a) and (b) relating to enforcement of

discretionary spending limits for former subsecs. (a) to (e)

relating to reporting of excess deficits.

Subsec. (a)(6)(I). Pub. L. 101-508, Sec. 13101(e)(2),

redesignated subsec. (a)(6)(I) of this section as section 907(e) of

this title.

1987 - Pub. L. 100-119 amended section generally, substituting

provisions consisting of subsecs. (a) to (e) relating to reports by

Director of CBO to Director of OMB and to Congress and by Director

of OMB to President and Congress for provisions consisting of

subsecs. (a) to (g) relating to joint reports by Directors of CBO

and OMB to Comptroller General and report by Comptroller General to

President and Congress.

Subsec. (a)(6)(B). Pub. L. 100-203, Sec. 8003(f), struck out

''and'' before ''contract authority'' and inserted provision

whereby the authority to provide insurance through the Federal

Housing Administration Fund be continued.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-89 effective Nov. 19, 1997, except as

otherwise provided, with delay permitted if State legislation is

required, see section 501 of Pub. L. 105-89, set out as a note

under section 622 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 119(d)(1) of Pub. L. 103-354 provided that the amendment

made by that section is effective Jan. 1, 1995.

ADJUSTMENT FOR ROUNDING

Pub. L. 106-429, Sec. 101(a) (title VII, Sec. 701(c)), Nov. 6,

2000, 114 Stat. 1900, 1900A-64, provided that: ''Under the terms of

section 251(b)(2) of the Balanced Budget and Emergency Deficit

Control Act of 1985 (2 U.S.C. 901(b)(2)) adjustments for rounding

shall be provided for the first amount referred to in section

251(c)(5)(A) of such Act (2 U.S.C. 901(c)(5)(A)), as amended by

this section, equal to 0.5 percent of such amount.''

Pub. L. 106-113, div. B, Sec. 1000(a)(5) (title III, Sec. 307),

Nov. 29, 1999, 113 Stat. 1536, 1501A-306, provided that: ''Under

the terms of section 251(b)(2) of Public Law 99-177 (2 U.S.C.

901(b)(2)), an adjustment for rounding shall be provided for the

first amount referred to in section 251(c)(4)(A) of such Act (2

U.S.C. 901(c)(4)(A)) equal to 0.2 percent of such amount.''

OFFSETTING ADJUSTMENT IN DISCRETIONARY SPENDING LIMITS

Pub. L. 105-178, title VIII, Sec. 8101(b), June 9, 1998, 112

Stat. 489, as amended by Pub. L. 105-206, title IX, Sec. 9013(a),

July 22, 1998, 112 Stat. 865, provided that:

''(1) Adjustment of nondefense category for fy1999. - The

discretionary spending limit set forth in section 251(c)(3)(B) of

the Balanced Budget and Emergency Deficit Control Act of 1985 (2

U.S.C. 901(c)(3)(B)), as adjusted in conformance with section

251(b) of that Act, is reduced by $859,000,000 in new budget

authority and $25,144,000,000 in outlays.

''(2) Adjustment of discretionary category for fy2000. - The

discretionary spending limit set forth in section 251(c)(4)(A) of

the Balanced Budget and Emergency Deficit Control Act of 1985 (2

U.S.C. 901(c)(4)(A)), as adjusted in conformance with section

251(b) of that Act, is reduced by $859,000,000 in new budget

authority and $26,009,000,000 in outlays.

''(3) Adjustment of discretionary spending limit for fy2001. -

The discretionary spending limit set forth in section 251(c)(5)(A)

of the Balanced Budget and Emergency Deficit Control Act of 1985 (2

U.S.C. 901(c)(5)(A)), as adjusted in conformance with section

251(b) of that Act, is reduced by $859,000,000 in new budget

authority and $26,329,000,000 in outlays.

''(4) Adjustment of discretionary spending limit for fy2002. -

The discretionary spending limit set forth in section 251(c)(6)(A)

of the Balanced Budget and Emergency Deficit Control Act of 1985 (2

U.S.C. 901(c)(6)(A)), as adjusted in conformance with section

251(b) of that Act, is reduced by $859,000,000 in new budget

authority and $26,675,000,000 in outlays.''

LEVEL OF OBLIGATION LIMITATIONS

Pub. L. 105-178, title VIII, Sec. 8103, June 9, 1998, 112 Stat.

492, provided that:

''(a) Highway Category. - For the purposes of section 251(b) of

the Balanced Budget and Emergency Deficit Control Act of 1985 (2

U.S.C. 901(b)), the level of obligation limitations for the highway

category is -

''(1) for fiscal year 1999, $25,883,000,000;

''(2) for fiscal year 2000, $26,629,000,000;

''(3) for fiscal year 2001, $27,158,000,000;

''(4) for fiscal year 2002, $27,767,000,000; and

''(5) for fiscal year 2003, $28,233,000,000.

''(b) Mass Transit Category. - For the purposes of section 251(b)

of the Balanced Budget and Emergency Deficit Control Act of 1985,

the level of obligation limitations for the mass transit category

is -

''(1) for fiscal year 1999, $5,365,000,000;

''(2) for fiscal year 2000, $5,797,000,000;

''(3) for fiscal year 2001, $6,271,000,000;

''(4) for fiscal year 2002, $6,747,000,000; and

''(5) for fiscal year 2003, $7,226,000,000.

For purposes of this subsection, the term 'obligation limitations'

means the sum of budget authority and obligation limitations.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 633, 643, 645, 691a,

691c, 900, 902, 903, 904, 907 of this title; title 16 section 556c;

title 23 section 110; title 33 section 2736; title 38 sections 113,

1729A; title 39 section 2009a; title 42 sections 5203, 8621; title

43 section 1474a.

-CITE-

2 USC Sec. 901a 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 901a. Repealed. Pub. L. 105-33, title X, Sec. 10204(a)(1),

Aug. 5, 1997, 111 Stat. 702

-MISC1-

Section, Pub. L. 99-177, title II, Sec. 251A, as added Pub. L.

103-322, title XXXI, Sec. 310001(g)(1), Sept. 13, 1994, 108 Stat.

2104, related to sequestration with respect to Violent Crime

Reduction Trust Fund.

-CITE-

2 USC Sec. 902 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 902. Enforcing pay-as-you-go

-STATUTE-

(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 901 or 903 of this title, 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 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) of

this section;

(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 903 of this

title, 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) of this section 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) of this section 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 906(a) of this title shall be made.

(B) Second

If additional reductions in direct spending accounts are

required to be made, the maximum reductions permissible under

sections 906(b) of this title (guaranteed and direct student

loans) and 906(c) of this title (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 906(d) of

this title 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 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)

of this section.

(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 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) of this

section. This subsection shall not apply to direct spending

provisions to cover agricultural crop disaster assistance.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 252, Dec. 12, 1985, 99 Stat. 1072;

Pub. L. 100-119, title I, Sec. 102(a), Sept. 29, 1987, 101 Stat.

764; Pub. L. 100-203, title VIII, Sec. 8003(e), Dec. 22, 1987, 101

Stat. 1330-282; Pub. L. 101-508, title XIII, Sec. 13101(a), Nov. 5,

1990, 104 Stat. 1388-581; Pub. L. 103-66, title XIV, Sec. 14003(a),

Aug. 10, 1993, 107 Stat. 684; Pub. L. 103-354, title I, Sec.

119(d)(2), Oct. 13, 1994, 108 Stat. 3208; Pub. L. 105-33, title X,

Sec. 10205, Aug. 5, 1997, 111 Stat. 702.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-MISC1-

AMENDMENTS

1997 - Subsec. (a). Pub. L. 105-33, Sec. 10205(1), added subsec.

(a) and struck out heading and text of former subsec. (a). Text

read as follows: ''The purpose of this section is to assure that

any legislation (enacted after November 5, 1990) affecting direct

spending or receipts that increases the deficit in any fiscal year

covered by this Act will trigger an offsetting sequestration.''

Subsec. (b). Pub. L. 105-33, Sec. 10205(1), added subsec. (b) and

struck out heading and text of former subsec. (b) which required

sequestrations at the end of a session of Congress to offset amount

of any net deficit increase in that fiscal year and prior fiscal

year caused by all direct spending and receipts legislation enacted

after Nov. 5, 1990.

Subsec. (c)(1)(B). Pub. L. 105-33, Sec. 10205(2), inserted ''and

direct'' after ''guaranteed''.

Subsec. (d). Pub. L. 105-33, Sec. 10205(3), amended heading and

text of subsec. (d) generally. Prior to amendment, text read as

follows: ''As soon as practicable after Congress completes action

on any direct spending or receipts legislation enacted after

November 5, 1990, after consultation with the Committees on the

Budget of the House of Representatives and the Senate, CBO shall

provide OMB with an estimate of the amount of change in outlays or

receipts, as the case may be, in each fiscal year through fiscal

year 1998 resulting from that legislation. Within 5 calendar days

after the enactment of any direct spending or receipts legislation

enacted after November 5, 1990, OMB shall transmit a report to the

House of Representatives and to the Senate containing such CBO

estimate of that legislation, an OMB estimate of the amount of

change in outlays or receipts, as the case may be, in each fiscal

year through fiscal year 1998 resulting from that legislation, and

an explanation of any difference between the two estimates. Those

OMB estimates shall be made using current economic and technical

assumptions. OMB and CBO shall prepare estimates under this

paragraph in conformance with scorekeeping guidelines determined

after consultation among the House and Senate Committees on the

Budget, CBO, and OMB.''

Subsec. (e). Pub. L. 105-33, Sec. 10205(4), struck out '', for

any fiscal year from 1991 through 1998,'' after ''If'' and

''through 1995'' after ''receipts in all fiscal years''.

1994 - Subsec. (e). Pub. L. 103-354 inserted at end ''This

subsection shall not apply to direct spending provisions to cover

agricultural crop disaster assistance.''

1993 - Subsec. (a). Pub. L. 103-66, Sec. 14003(a)(1), which

directed the substitution of ''Fiscal year 1992-1998 enforcement''

for ''Fiscal year 1992-1995 enforcement'' in heading, was executed

by substituting ''Fiscal years 1992-1998 enforcement'' for ''Fiscal

years 1992-1995 enforcement'', to reflect the probable intent of

Congress.

Subsec. (d). Pub. L. 103-66, Sec. 14003(a)(2), substituted

''through fiscal year 1998'' for ''through fiscal year 1995'' in

two places.

Subsec. (e). Pub. L. 103-66, Sec. 14003(a)(3), substituted ''for

any fiscal year from 1991 through 1998'' for ''for fiscal year

1991, 1992, 1993, 1994, or 1995''.

1990 - Pub. L. 101-508 amended section generally, substituting

subsecs. (a) to (e) relating to enforcement of pay-as-you-go for

former subsecs. (a) to (g) relating to Presidential order.

1987 - Pub. L. 100-119 amended section generally to reflect

substitution of Director of OMB for Comptroller General as official

submitting reports under section 901 of this title and to revise

provisions relating to content of Presidential orders issued in

accordance with those reports.

Subsec. (c)(2)(F)(ii). Pub. L. 100-203, Sec. 8003(e), substituted

''proposed'' for ''made''.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 119(d)(2) of Pub. L. 103-354 provided that the amendment

made by that section is effective Jan. 1, 1995.

REDUCTION OF PREEXISTING PAYGO BALANCES

Pub. L. 107-312, Sec. 1, Dec. 2, 2002, 116 Stat. 2456, provided

that: ''Upon enactment of this Act (Dec. 2, 2002), the Director of

the Office of Management and Budget shall reduce any balances of

direct spending and receipts legislation for all fiscal years under

section 252 of the Balanced Budget and Emergency Deficit Control

Act of 1985 (2 U.S.C. 902) to zero.''

PAY-AS-YOU-GO ADJUSTMENT

Pub. L. 107-117, div. C, Sec. 102, Jan. 10, 2002, 115 Stat.

2342, provided that: ''In preparing the final sequestration report

for fiscal year 2002 required by section 254(f)(3) of the Balanced

Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.

904(f)(3)), the Director of the Office of Management and Budget

shall change any balance of direct spending and receipts

legislation for fiscal years 2001 and 2002 under section 252 of

that Act (2 U.S.C. 902) to zero.''

CONFORMING PAYGO SCORECARD WITH TRANSPORTATION EQUITY ACT FOR 21ST

CENTURY

Pub. L. 105-178, title VIII, Sec. 8102, June 9, 1998, 112 Stat.

492, as amended by Pub. L. 105-206, title IX, Sec. 9013(c), July

22, 1998, 112 Stat. 865, provided that: ''Upon the enactment of

this Act (June 9, 1998), the Director of the Office of Management

and Budget shall not make any estimates under section 252(d) of the

Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.

902(d)) of changes in direct spending outlays and receipts for any

fiscal year resulting from this title (see Tables for

classification) or from section 1102 of this Act (23 U.S.C. 104

note).''

REDUCTION OF PREEXISTING BALANCES AND EXCLUSION OF EFFECTS OF PUB.

L. 105-33 FROM PAYGO SCORECARD

Section 10213 of Pub. L. 105-33 provided that: ''Upon the

enactment of this Act (Aug. 5, 1997), the Director of the Office of

Management and Budget shall -

''(1) reduce any balances of direct spending and receipts

legislation for any fiscal year under section 252 of the Balanced

Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 902)

to zero; and

''(2) not make any estimates of changes in direct spending

outlays and receipts under subsection (d) of that section for any

fiscal year resulting from the enactment of this Act (see Tables

for classification) or of the Taxpayer Relief Act of 1997 (Pub.

L. 105-34, see Tables for classification).''

REDUCTION OF DIRECT SPENDING AND RECEIPTS LEGISLATION BALANCES

Section 14003(c) of Pub. L. 103-66 provided that: ''Upon

enactment of this Act (Aug. 10, 1993), the director of the Office

of Management and Budget shall reduce the balances of direct

spending and receipts legislation applicable to each fiscal year

under section 252 of the Balanced Budget and Emergency Deficit

Control Act of 1985 (2 U.S.C. 902) by an amount equal to the net

deficit reduction achieved through the enactment in this Act (see

Tables for classification) of direct spending and receipts

legislation for that year.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 645, 691c, 901, 903, 904,

906, 907, 907d of this title; title 7 section 1446; title 10

section 1414; title 16 sections 3834, 3837d, 3839c; title 19

section 3624; title 31 section 1341; title 38 section 1729A; title

39 section 2009a.

-CITE-

2 USC Sec. 903 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 903. Enforcing deficit targets

-STATUTE-

(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 901 of this title and

section 902 of this title, but after any sequestration required by

section 901 of this title (enforcing discretionary spending limits)

or section 902 of this title (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 902(e) of this

title; 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)

of this section.

The ''margin'' for fiscal year 1992 or 1993 is zero and for fiscal

year 1994 or 1995 is $15,000,000,000.

(c) Dividing 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).

(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 account at that time by the uniform

percentage necessary to carry out subsection (c) of this section,

except that, if any military personnel are exempt, adjustments

shall be made under the procedure set forth in section 901(a)(3) of

this title.

(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

906(a) of this title shall be made.

(2) Second

If additional reductions in non-defense accounts are required

to be made, the maximum reduction permissible under sections

906(b) of this title (guaranteed student loans) and 906(c) of

this title (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) of this section, except that -

(i) the medicare program specified in section 906(d) of this

title shall not be reduced by more than 2 percent in total

including any reduction of less than 2 percent made under

section 902 of this title or, if it has been reduced by 2

percent or more under section 902 of this title, it may not be

further reduced under this section; and

(ii) the health programs set forth in section 906(e) of this

title shall not be reduced by more than 2 percent in total

(including any reduction made under section 901 of this title),

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.

(f) Baseline assumptions; part-year appropriations

(1) Budget assumptions

For purposes of subsections (b), (c), (d), and (e) of this

section, accounts shall be assumed to be at the level in the

baseline minus any reductions required to be made under sections

901 and 902 of this title.

(2) Part-year appropriations

If, on the date specified in subsection (a) of this section,

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) of this section, 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 of

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 901(b)(1)(C) (FOOTNOTE 1) and

901(b)(2)(E) (FOOTNOTE 1) of this title, otherwise applicable

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

deemed to apply for fiscal year 1994 (and 1995 if applicable).

(FOOTNOTE 1) See References in Text note below.

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

and the sequestration reports for those years under section 904

of this title 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 901(b) of this title.

(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 665 (FOOTNOTE 1) of

this title.

(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 665 (FOOTNOTE 1) of this

title as adjusted under section 901 of this title.

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

spending and receipts legislation enacted after November 5,

1990 (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 902(d) of this title

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

902 of this title of direct spending, if any, as contained in

OMB's final sequestration report for that 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 665

(FOOTNOTE 1) of this title 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.

(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).

-SOURCE-

(Pub. L. 99-177, title II, Sec. 253, Dec. 12, 1985, 99 Stat. 1078;

Pub. L. 100-119, title I, Sec. 103, Sept. 29, 1987, 101 Stat. 775;

Pub. L. 101-508, title XIII, Sec. 13101(a), Nov. 5, 1990, 104 Stat.

1388-583.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-REFTEXT-

REFERENCES IN TEXT

Section 901 of this title, referred to in subsec. (g)(1)(B), was

amended by Pub. L. 105-33, title X, Sec. 10203(a)(4), Aug. 5, 1997,

111 Stat. 699, by striking out subsec. (b) and adding a new subsec.

(b). In the new subsec. (b), par. (1) does not contain a subpar.

(C) and par. (2)(E) relates to allowance for international

arrearages. Prior to amendment, section 901(b)(2)(E) related to

special allowance for discretionary new budget authority.

Section 665 of this title, referred to in subsec. (g)(1), (2)(A),

(D), was repealed by Pub. L. 105-33, title X, Sec. 10118(a), Aug.

5, 1997, 111 Stat. 695.

-COD-

CODIFICATION

November 5, 1990, referred to in subsec. (g)(2)(B), was in the

original ''the date of enactment of this section'', which was

translated as meaning the date of enactment of Pub. L. 101-508,

which amended this section generally, to reflect the probable

intent of Congress.

-MISC3-

AMENDMENTS

1990 - Pub. L. 101-508 amended section generally, substituting

provisions relating to enforcement of deficit targets for

provisions relating to compliance report by Comptroller General.

1987 - Pub. L. 100-119 amended section generally, designating

existing provisions as par. (1), substituting ''(or December 15,

1987, in the case of the fiscal year 1988)'' for ''(or on or before

April 1, 1986, in the case of the fiscal year 1986)'', and adding

pars. (2) and (3).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 901, 902, 904, 906, 907,

907d of this title.

-CITE-

2 USC Sec. 904 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 904. Reports and orders

-STATUTE-

(a) Timetable

The timetable with respect to this subchapter for any budget year

is as follows:

---------------------------------------------------------------------

^LDate: ^LAction to be completed:

---------------------------------------------------------------------

January 21 Notification regarding optional

adjustment of maximum deficit

amount.

5 days before the President's CBO sequestration preview report.

budget submission

The President's budget submission OMB sequestration preview report.

August 10 Notification regarding military

personnel.

August 15 CBO sequestration update report.

August 20 OMB sequestration update report.

10 days after end of session CBO final sequestration report.

15 days after end of session OMB final sequestration report;

Presidential order.

-------------------------------

(b) Submission and availability of reports

Each report required by this section shall be submitted, in the

case of CBO, to the House of Representatives, the Senate and OMB

and, in the case of OMB, to the House of Representatives, the

Senate, and the President on the day it is issued. On the

following day a notice of the report shall be printed in the

Federal Register.

(c) Sequestration preview reports

(1) Reporting requirement

On the dates specified in subsection (a) of this section, OMB

and CBO shall issue a preview report regarding discretionary,

pay-as-you-go, and deficit sequestration based on laws enacted

through those dates.

(2) Discretionary sequestration report

The preview reports shall set forth estimates for the current

year and each subsequent year through 2002 of the applicable

discretionary spending limits for each category and an

explanation of any adjustments in such limits under section 901

of this title.

(3) Pay-as-you-go sequestration reports

The preview reports shall set forth, for the current year and

the budget year, estimates for each of the following:

(A) The amount of net deficit increase or decrease, if any,

calculated under subsection 902(b) of this title.

(B) A list identifying each law enacted and sequestration

implemented after November 5, 1990, included in the calculation

of the amount of deficit increase or decrease and specifying

the budgetary effect of each such law.

(C) The sequestration percentage or (if the required

sequestration percentage is greater than the maximum allowable

percentage for medicare) percentages necessary to eliminate a

deficit increase under section 902(c) of this title.

(4) Deficit sequestration reports

The preview reports shall set forth for the budget year

estimates for each of the following:

(A) The maximum deficit amount, the estimated deficit

calculated under section 903(b) of this title, the excess

deficit, and the margin.

(B) The amount of reductions required under section 902 of

this title, the excess deficit remaining after those reductions

have been made, and the amount of reductions required from

defense accounts and the reductions required from non-defense

accounts.

(C) The sequestration percentage necessary to achieve the

required reduction in defense accounts under section 903(d) of

this title.

(D) The reductions required under sections 903(e)(1) and

903(e)(2) of this title.

(E) The sequestration percentage necessary to achieve the

required reduction in non-defense accounts under section

903(e)(3) of this title.

The CBO report need not set forth the items other than the

maximum deficit amount for fiscal year 1992, 1993, or any fiscal

year for which the President notifies the House of

Representatives and the Senate that he will adjust the maximum

deficit amount under the option under section 903(g)(1)(B) of

this title.

(5) Explanation of differences

The OMB reports shall explain the differences between OMB and

CBO estimates for each item set forth in this subsection.

(d) Notification regarding military personnel

On or before the date specified in subsection (a) of this

section, the President shall notify the Congress of the manner in

which he intends to exercise flexibility with respect to military

personnel accounts under section 905(f) of this title.

(e) Sequestration update reports

On the dates specified in subsection (a) of this section, OMB and

CBO shall issue a sequestration update report, reflecting laws

enacted through those dates, containing all of the information

required in the sequestration preview reports.

(f) Final sequestration reports

(1) Reporting requirement

On the dates specified in subsection (a) of this section, OMB

and CBO shall issue a final sequestration report, updated to

reflect laws enacted through those dates.

(2) Discretionary sequestration reports

The final reports shall set forth estimates for each of the

following:

(A) For the current year and each subsequent year through

2002 the applicable discretionary spending limits for each

category and an explanation of any adjustments in such limits

under section 901 of this title.

(B) For the current year and the budget year the estimated

new budget authority and outlays for each category and the

breach, if any, in each category.

(C) For each category for which a sequestration is required,

the sequestration percentages necessary to achieve the required

reduction.

(D) For the budget year, for each account to be sequestered,

estimates of the baseline level of sequestrable budgetary

resources and resulting outlays and the amount of budgetary

resources to be sequestered and resulting outlay reductions.

(3) Pay-as-you-go and deficit sequestration reports

The final reports shall contain all the information required in

the pay-as-you-go and deficit sequestration preview reports. In

addition, these reports shall contain, for the budget year, for

each account to be sequestered, estimates of the baseline level

of sequestrable budgetary resources and resulting outlays and the

amount of budgetary resources to be sequestered and resulting

outlay reductions. The reports shall also contain estimates of

the effects on outlays of the sequestration in each outyear for

direct spending programs.

(4) Explanation of differences

The OMB report shall explain any differences between OMB and

CBO estimates of the amount of any net deficit change calculated

under subsection (FOOTNOTE 1) 902(b) of this title, any excess

deficit, any breach, and any required sequestration percentage.

The OMB report shall also explain differences in the amount of

sequesterable (FOOTNOTE 2) resources for any budget account to be

reduced if such difference is greater than $5,000,000.

(FOOTNOTE 1) So in original. Probably should be ''section''.

(FOOTNOTE 2) So in original. Probably should be

''sequestrable''.

(5) Presidential order

On the date specified in subsection (a) of this section, if in

its final sequestration report OMB estimates that any

sequestration is required, the President shall issue an order

fully implementing without change all sequestrations required by

the OMB calculations set forth in that report. This order shall

be effective on issuance.

(g) Within-session sequestration reports and order

If an appropriation for a 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, 10

days later CBO shall issue a report containing the information

required in paragraph (f)(2). Fifteen days after enactment, OMB

shall issue a report containing the information required in

paragraphs (f)(2) and (f)(4). On the same day as the OMB report,

the President shall issue an order fully implementing without

change all sequestrations required by the OMB calculations set

forth in that report. This order shall be effective on issuance.

(h) GAO compliance report

Upon request of the Committee on the Budget of the House of

Representatives or the Senate, the Comptroller General shall submit

to the Congress and the President a report on -

(1) the extent to which each order issued by the President

under this section complies with all of the requirements

contained in this subchapter, either certifying that the order

fully and accurately complies with such requirements or

indicating the respects in which it does not; and

(2) the extent to which each report issued by OMB or CBO under

this section complies with all of the requirements contained in

this subchapter, either certifying that the report fully and

accurately complies with such requirements or indicating the

respects in which it does not.

(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.

(j) Economic and technical assumptions

In all reports required by this section, OMB shall use the same

economic and technical assumptions as used in the most recent

budget submitted by the President under section 1105(a) of title

31.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 254, Dec. 12, 1985, 99 Stat. 1078;

Pub. L. 100-119, title I, Sec. 102(b)(1), 106(e)(2), Sept. 29,

1987, 101 Stat. 773, 781; Pub. L. 101-508, title XIII, Sec.

13101(a), Nov. 5, 1990, 104 Stat. 1388-586; Pub. L. 103-66, title

XIV, Sec. 14002(c)(2), 14003(b), Aug. 10, 1993, 107 Stat. 684, 685;

Pub. L. 103-322, title XXXI, Sec. 310001(g)(2), Sept. 13, 1994, 108

Stat. 2105; Pub. L. 104-316, title I, Sec. 102(d), Oct. 19, 1996,

110 Stat. 3828; Pub. L. 105-33, title X, Sec. 10206, Aug. 5, 1997,

111 Stat. 704.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-COD-

CODIFICATION

November 5, 1990, referred to in subsec. (c)(3)(B), was in the

original ''the date of enactment of this section'', which was

translated as meaning the date of enactment of Pub. L. 101-508,

which amended this section generally, to reflect the probable

intent of Congress.

-MISC3-

AMENDMENTS

1997 - Subsec. (c). Pub. L. 105-33, Sec. 10206(1), (2),

redesignated subsec. (d) as (c), substituted ''2002'' for ''1998''

in par. (2), and struck out heading and text of former subsec. (c).

Text read as follows: ''With respect to budget year 1994 or 1995,

on the date specified in subsection (a) of this section the

President shall notify the House of Representatives and the Senate

of his decision regarding the optional adjustment of the maximum

deficit amount (as allowed under section 903(g)(1)(B) of this

title).''

Subsec. (d). Pub. L. 105-33, Sec. 10206(1), (3), redesignated

subsec. (e) as (d) and substituted ''section 905(f)'' for ''section

905(h)''. Former subsec. (d) redesignated (c).

Subsec. (e). Pub. L. 105-33, Sec. 10206(1), redesignated subsec.

(f) as (e). Former subsec. (e) redesignated (d).

Subsec. (f). Pub. L. 105-33, Sec. 10206(1), redesignated subsec.

(g) as (f). Former subsec. (f) redesignated (e).

Subsec. (f)(2)(A). Pub. L. 105-33, Sec. 10206(4)(A), substituted

''2002'' for ''1998''.

Subsec. (f)(3). Pub. L. 105-33, Sec. 10206(4)(B), struck out

''through 1998'' after ''each outyear''.

Subsec. (f)(4) to (6). Pub. L. 105-33, Sec. 10206(4)(C),

redesignated pars. (5) and (6) as (4) and (5), respectively, and

struck out heading and text of former par. (4). Text read as

follows: ''The final reports shall set forth for the budget year

estimates for each of the following:

''(A) The amount of budget authority appropriated from the

Violent Crime Reduction Trust Fund and outlays resulting from

those appropriations.

''(B) The sequestration percentage and reductions, if any,

required under section 901a of this title.''

Subsec. (g). Pub. L. 105-33, Sec. 10206(1), (5), redesignated

subsec. (h) as (g) and substituted ''paragraph (f)(2)'' for

''paragraph (g)(2)'' and ''paragraphs (f)(2) and (f)(4)'' for

''paragraphs (g)(2) and (g)(4)''. Former subsec. (g) redesignated

(f).

Subsecs. (h) to (k). Pub. L. 105-33, Sec. 10206(1), redesignated

subsecs. (i) to (k) as (h) to (j), respectively. Former subsec.

(h) redesignated (g).

1996 - Subsec. (a). Pub. L. 104-316, Sec. 102(d)(1), struck out

item at end of timetable relating to GAO compliance report.

Subsec. (i). Pub. L. 104-316, Sec. 102(d)(2), in introductory

provisions substituted ''Upon request of the Committee on the

Budget of the House of Representatives or the Senate'' for ''On the

date specified in subsection (a) of this section''.

1994 - Subsec. (g)(4) to (6). Pub. L. 103-322 added par. (4) and

redesignated former pars. (4) and (5) as (5) and (6), respectively.

1993 - Subsecs. (d)(2), (g)(2)(A), (3). Pub. L. 103-66

substituted ''1998'' for ''1995''.

1990 - Pub. L. 101-508 amended section generally, substituting

provisions setting out timetable and requisite content of reports

and orders developed as part of sequestration process for former

provisions relating to special Congressional procedures in the

event of recession, Congressional responses to Presidential orders,

and treatment of certain resolutions as reconciliation bills.

1987 - Subsec. (b)(1)(A). Pub. L. 100-119, Sec. 102(b)(1),

substituted ''the Director of OMB'' for ''the Comptroller

General''.

Subsec. (b)(1)(E). Pub. L. 100-119, Sec. 106(e)(2), inserted

provisions relating to maximum deficit amount for fiscal year 1988

or 1989.

FISCAL YEAR DEFICIT CONTROL MEASURES

1991 - Pub. L. 102-27, title IV, Sec. 401(b), Apr. 10, 1991, 105

Stat. 154, provided that: ''Upon the enactment of this Act (Apr.

10, 1991), the order issued by the President on November 9, 1990

(set out below), pursuant to sections 251 and 254 of the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended, (2

U.S.C. 901, 904) is hereby rescinded. Any action taken to

implement this order shall be reversed, and any sequestrable

resource that has been reduced or sequestered by such order is

hereby restored, revived, or released and shall be available to the

same extent and for the same purpose as if the order had not been

issued.''

Section 13401 of Pub. L. 101-508 provided that:

''(a) Order Rescinded. - Upon the enactment of this Act (Nov. 5,

1990), the orders issued by the President on August 25, 1990, and

October 15, 1990 (set out below), pursuant to section 252 of the

Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.

902) are hereby rescinded.

''(b) Amounts Restored. - Any action taken to implement the

orders referred to in subsection (a) shall be reversed, and any

sequestrable resource that has been reduced or sequestered by such

orders is hereby restored, revived, or released and shall be

available to the same extent and for the same purpose as if the

orders had not been issued.

''(c) Furloughed Employees. - (1) Federal employees furloughed as

a result of the lapse in appropriations from midnight October 5,

1990, until the enactment of House Joint Resolution 666 (Pub. L.

101-412, which was approved Oct. 9, 1990) shall be compensated at

their standard rate of compensation for the period during which

there was a lapse in appropriations.

''(2) All obligations incurred in anticipation of the

appropriations made and authority granted by House Joint Resolution

666 for the purposes of maintaining the essential level of activity

to protect life and property and bringing about orderly termination

of government functions are hereby ratified and approved if

otherwise in accord with the provisions of that Act (Pub. L.

101-412, Oct. 9, 1990, 104 Stat. 894).''

Pub. L. 101-467, Sec. 105, Oct. 28, 1990, 104 Stat. 1087,

provided that:

''(a) Any order on sequestration for fiscal year 1991 issued

before, on, or after the date of enactment of this joint resolution

(Oct. 28, 1990) pursuant to section 252 of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 902) is suspended

and no action shall be taken to implement any such order.

''(b) Subsection (a) shall cease to be effective on the date set

forth in section 101(b)(B) (Nov. 5, 1990).''

Pub. L. 101-461, Sec. 113, Oct. 25, 1990, 104 Stat. 1078,

provided that:

''(a) Any order on sequestration for fiscal year 1991 issued

before, on, or after the date of enactment of this joint resolution

(Oct. 25, 1990) pursuant to section 252 of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 902) is suspended

and no action shall be taken to implement any such order.

''(b) Subsection (a) shall cease to be effective on the date set

forth in section 108(c) (Oct. 27, 1990).''

Pub. L. 101-444, Sec. 113, Oct. 19, 1990, 104 Stat. 1033,

provided that:

''(a) Any order on sequestration for fiscal year 1991 issued

before, on, or after the date of enactment of this joint resolution

(Oct. 19, 1990) pursuant to section 252 of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 902) is suspended

and no action shall be taken to implement any such order.

''(b) Subsection (a) shall cease to be effective on the date set

forth in section 108(c) (Oct. 24, 1990).''

Pub. L. 101-412, Sec. 113, Oct. 9, 1990, 104 Stat. 897, provided

that:

''(a) Any order on sequestration for fiscal year 1991 issued

before, on, or after the date of enactment of this joint resolution

(Oct. 9, 1990) pursuant to section 252 of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 902) is suspended

and no action shall be taken to implement any such order.

''(b) Subsection (a) shall cease to be effective on the date set

forth in section 108(c) (Oct. 19, 1990).''

Pub. L. 101-403, title I, Sec. 113, Oct. 1, 1990, 104 Stat. 870,

provided that:

''(a) Any order on sequestration for fiscal year 1991 issued

before, on, or after the date of enactment of this joint resolution

(Oct. 1, 1990) pursuant to section 252 of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 902) is suspended

and no action shall be taken to implement any such order.

''(b) Subsection (a) shall cease to be effective on the date set

forth in section 108(c) (Oct. 5, 1990).''

Final Order of the President of the United States, Nov. 9, 1990,

26 Weekly Compilation of Presidential Documents 1797, Nov. 12,

1990, provided:

By the authority vested in me as President by the statutes of the

United States of America, including section 254 of the Balanced

Budget and Emergency Deficit Control Act of 1985 (Public Law

99-177) (2 U.S.C. 904), as amended by the Balanced Budget and

Emergency Deficit Control Reaffirmation Act of 1987 (Public Law

100-119) and Title XIII of the Omnibus Reconciliation Act of 1990

(Public Law 101-508) (hereafter referred to as ''the Act''), I

hereby order that the following actions be taken immediately to

implement the sequestrations and reductions determined by the

Director of the Office of Management and Budget as set forth in his

report dated November 9, 1990, under sections 251 and 254 of the

Act (2 U.S.C. 901, 904):

(1) Budgetary resources for each non-exempt account within the

international category of discretionary spending shall be reduced

as specified by the Director of the Office of Management and Budget

in his report of November 9, 1990.

(2) Pursuant to sections 250(c)(6) and 251 (2 U.S.C. 900(c)(6),

901), budgetary resources subject to sequestration shall be new

budget authority; new loan guarantee commitments or limitations;

new direct loan obligations, commitments, or limitations; and

obligation limitations.

(3) For accounts making commitments for guaranteed loans as

authorized by substantive law, the head of each Department or

agency is directed to reduce the level of such commitments or

obligations to the extent necessary to conform to the limitations

established by the Act (Pub. L. 99-177, title II, see Short Title

note set out under 2 U.S.C. 900) and specified by the Director of

the Office of Management and Budget in his report of November 9,

1990.

All sequestrations shall be made in strict accordance with the

specifications of the November 9th report of the Director of the

Office of Management and Budget and the requirements of sections

251 and 254. George Bush.

Final Order of the President of the United States, Oct. 15, 1990,

55 F.R. 41977, provided:

By the authority vested in me as President by the statutes of the

United States of America, including section 252 of the Balanced

Budget and Emergency Deficit Control Act of 1985 (Public Law

99-177) (2 U.S.C. 902), as amended by the Balanced Budget and

Emergency Deficit Control Reaffirmation Act of 1987 (Public Law

100-119) (hereafter referred to as ''the Act''), I hereby order

that the following actions shall be taken to implement the

sequestrations and reductions determined by the Director of the

Office of Management and Budget as set forth in his report dated

October 15, 1990, under section 251 of the Act (2 U.S.C. 901):

(1) Each automatic spending increase that would, but for the

provisions of the Act, take effect during fiscal year 1991 is

permanently sequestered or reduced as provided in section 252.

(2) The following are sequestered as provided in section 252: new

budget authority; unobligated balances; new loan guarantee

commitments or limitations; new direct loan obligations,

commitments, or limitations; spending authority as defined in

section 401(c)(2) of the Congressional Budget Act of 1974, as

amended (2 U.S.C. 651(c)(2)); and obligation limitations.

(3) For accounts making payments otherwise required by

substantive law, the head of each Department or agency is directed

to modify the calculation of each such payment to the extent

necessary to reduce the estimate of total required payments for the

fiscal year by the amount specified by the Director of the Office

of Management and Budget in his report of October 15, 1990.

(4) For accounts making commitments for guaranteed loans as

authorized by substantive law, the head of each Department or

agency is directed to reduce the level of such commitments or

obligations to the extent necessary to conform to the limitations

established by the Act and specified by the Director of the Office

of Management and Budget in his report of October 15, 1990.

All reductions and sequestrations shall be made in strict

accordance with the specifications of the October 15th report of

the Director of the Office of Management and Budget and the

requirements of section 252(b).

This order supersedes the Initial Order issued on August 25, 1990

(see above).

This order shall be published in the Federal Register.

George Bush.

Initial Order of the President of the United States, Aug. 25,

1990, 55 F.R. 35133, which provided emergency deficit control

measures for fiscal year 1991, was superseded by Final Order of the

President, Oct. 15, 1990, 55 F.R. 41977, set out above.

1990 - Pub. L. 101-239, title VI, Sec. 6001, Dec. 19, 1989, 103

Stat. 2139, provided that: ''Notwithstanding any other provision of

law (including section 11002 (set out below) or any other provision

of this Act, other than section 6201 (set out below)), the

reductions in the amount of payments required under title XVIII of

the Social Security Act (42 U.S.C. 1395 et seq.) made by the final

sequester order issued by the President on October 16, 1989 (set

out below), pursuant to section 252(b) of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 902(b)) shall

continue to be effective (as provided by sections 252(a)(4)(B) and

256(d)(2) of such Act (2 U.S.C. 902(a)(4)(B), 906(d)(2))) through

December 31, 1989, with respect to payments for items and services

under part A of such title (42 U.S.C. 1395c et seq.) (including

payments under section 1886 of such title (42 U.S.C. 1395ww)

attributable or allocated to such part). Each such payment made

for items and services provided during fiscal year 1990 after such

date shall be increased by 1.42 percent above what it would

otherwise be under this Act.''

Pub. L. 101-239, title VI, Sec. 6101, Dec. 19, 1989, 103 Stat.

2168, provided that: ''Notwithstanding any other provision of law

(including any other provision of this Act, other than section 6201

(set out below)), the reductions in the amount of payments required

under title XVIII of the Social Security Act (42 U.S.C. 1395 et

seq.) made by the final sequester order issued by the President on

October 16, 1989, pursuant to section 252(b) of the Balanced Budget

and Emergency Deficit Control Act of 1985 (2 U.S.C. 902(b)) shall

continue to be effective (as provided by sections 252(a)(4)(B) and

256(d)(2) of such Act (2 U.S.C. 902(a)(4)(B), 906(d)(2))) through

March 31, 1990, with respect to payments for items and services

under part B of such title (42 U.S.C. 1395j et seq.).''

Pub. L. 101-239, title VI, Sec. 6201, Dec. 19, 1989, 103 Stat.

2225, provided that: ''Notwithstanding any other provision of law

(including section 11002 (set out below) or any other provision of

this Act), the reductions in the amount of payments required under

title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.)

made by the final sequester order issued by the President on

October 16, 1989 (set out below), pursuant to section 252(b) of the

Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.

902(b)) shall continue to be effective (as provided by sections

252(a)(4)(B) and 256(d)(2) of such Act (2 U.S.C. 902(a)(4)(B),

906(d)(2))) through December 31, 1989, with respect to payments

under section 1833(a)(1)(A) or 1876 of the Social Security Act (42

U.S.C. 1395l(a)(1)(A), 1395mm), section 402 of the Social Security

Amendments of 1967 (section 402 of Pub. L. 90-248, enacting 42

U.S.C. 1395b-1, and amending 42 U.S.C. 1395ll), or section 222 of

the Social Security Amendments of 1972 (section 222 of Pub. L.

92-603, amending 42 U.S.C. 1395b-1 and enacting provisions set out

as a note under 42 U.S.C. 1395b-1). Each such payment made during

fiscal year 1990 after such date shall be increased by 1.42 percent

above what it would otherwise be under this Act.''

Pub. L. 101-239, title XI, Sec. 11002, Dec. 19, 1989, 103 Stat.

2490, provided that:

''(a) Order Rescinded. - (1) Upon the issuance of a new final

order by the President under subsection (b)(4) (set out below), the

order issued by the President on October 16, 1989 (set out below),

pursuant to section 252 of the Balanced Budget and Emergency

Deficit Control Act of 1985 (2 U.S.C. 902) is rescinded.

''(2) Except as otherwise provided in sections 6001, 6101, and

6201 (set out above), and subject to subsection (b), any action

taken to implement the order issued by the President on October 16,

1989, shall be reversed, and any sequesterable budgetary resource

that has been reduced or sequestered by such order is restored,

revived, or released and shall be available to the same extent and

for the same purposes as if an order had not been issued.

''(3) For purposes of section(s) 702(d) and 1101(c) of the Ethics

Reform Act of 1989 (Pub. L. 101-194, 5 U.S.C. 5305 note, 2 U.S.C.

31-1 note), the order issued by the President on October 16, 1989,

pursuant to section 252 of the Balanced Budget and Emergency

Deficit Control Act of 1985 (2 U.S.C. 902) is deemed to be

rescinded on January 31, 1990.

''(b) Adjusted Reduction. -

''(1) Before the close of the fifteenth calendar day beginning

after the date of enactment of this Act (Dec. 19, 1989), the

Director of OMB shall issue a revised report using the exact

budget baseline set forth in the report of October 16, 1989 (set

out below), and following the requirements, specifications,

definitions, and calculations required by the Balanced Budget and

Emergency Deficit Control Act of 1985 (Pub. L. 99-177, title II,

see Short Title note set out under 2 U.S.C. 901) for the final

report issued under section 251(c)(2) (2 U.S.C. 901(c)(2)) for

fiscal year 1990, except that the aggregate outlay reduction to

be achieved shall be an amount equal to $16.1 billion multiplied

by 130 divided by 365. Calculations made to carry out the

preceding sentence shall take into account the reductions and

cancellations achieved by paragraphs (2) and (3) and shall not be

affected by subsection (d).

''(2) Notwithstanding any provision of law other than this

paragraph, the reductions and cancellations in the student loan

programs described in section 256(c) of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 906(c)) achieved

by the order issued by the President on October 16, 1989, shall

remain in effect through December 31, 1989, and no reductions or

cancellations in such programs shall be made by the order issued

under paragraph (4).

''(3) Notwithstanding any provision of law other than this

paragraph, any automatic spending increase suspended or cancelled

by the order issued by the President on October 16, 1989, shall

be paid at a rate that is 130/365ths less than the rate that

would have been paid under the laws providing for such automatic

spending increase.

''(4) On the date that the Director submits a revised report to

the President under paragraph (1) for fiscal year 1990, the

President shall issue a new final order to make all of the

reductions and cancellations specified in such report in

conformity with section 252(a)(2) of the Balanced Budget and

Emergency Deficit Control Act of 1985 (2 U.S.C. 902(a)(2)). Such

order shall be deemed to have become effective on October 16,

1989.

''(c) Compliance Report by Comptroller General. - Before the

close of the thirtieth day beginning after the date the President

issues a new final order under subsection (b)(4), the Comptroller

General shall submit to the Congress and the President a compliance

report setting forth the information required under section 253 of

the Balanced Budget and Emergency Deficit Control Act of 1985 (2

U.S.C. 903) with respect to such order.

''(d) No Double Reduction in Medicare. - With respect to items

and services described in section 6001, 6101, or 6201 (set out

above) for periods for which reductions are made pursuant to the

respective sections, no reduction shall be made under subsection

(b).''

New Final Order of the President of the United States, Dec. 27,

1989, 54 F.R. 53469, provided:

By the authority vested in me as President by the statutes of the

United States of America, including section 252 of the Balanced

Budget and Emergency Deficit Control Act of 1985 (Public Law

99-177) (2 U.S.C. 902), as amended by the Balanced Budget and

Emergency Deficit Control Reaffirmation Act of 1987 (Public Law

100-119) (hereafter referred to as ''the Act''), and section 11002

of the Omnibus (Budget) Reconciliation Act of 1989 (Public Law

101-239) (''OBRA'') (set out above), I hereby order that the

following actions be taken to implement the sequestrations and

reductions determined by the Director of the Office of Management

and Budget as set forth in his report dated December 27, 1989,

under section 251 of the Act (2 U.S.C. 901) and section 11002 of

the OBRA:

(1) Each automatic spending increase that would, but for the

provisions of the Act, take effect during fiscal year 1990 is

permanently sequestered or reduced as provided in section 252 of

the Act and section 11002 of OBRA.

(2) The following are sequestered as provided in section 252 of

the Act and section 11002 of OBRA: new budget authority;

unobligated balances; new loan guarantee commitments or

limitations; new direct loan obligations, commitments, or

limitations; spending authority as defined in section 401(c)(2) of

the Congressional Budget Act of 1974, as amended (2 U.S.C.

651(c)(2)); and obligation limitations.

(3) For accounts making payments otherwise required by

substantive law, the head of each department or agency is directed

to modify the calculation of each such payment to the extent

necessary to reduce the estimate of total required payments for the

fiscal year by the amount specified by the Director of the Office

of Management and Budget in his report of December 27, 1989.

(4) For accounts making commitments for guaranteed loans or

obligations for direct loans as authorized by substantive law, the

head of each department or agency is directed to reduce the level

of such commitments or obligations to the extent necessary to

conform to the limitations established by the Act and by OBRA and

specified by the Director of the Office of Management and Budget in

his report of December 27, 1989.

All reductions and sequestrations shall be made in strict

accordance with the specifications of the December 27th report of

the Director of the Office of Management and Budget and the

requirements of section 252(b) of the Act and section 11002 of

OBRA.

This order shall be deemed to have become effective on October

16, 1989, as provided in section 11002 of OBRA.

This order shall be published (in the) Federal Register.

George Bush.

Final Order of the President of the United States, Oct. 16, 1989,

54 F.R. 42795, which provided emergency deficit control measures

for fiscal year 1990, was rescinded by section 11002(a) of Pub. L.

101-239, set out above, upon issuance of New Final Order of the

President of the United States, Dec. 27, 1989, 54 F.R. 53469, set

out above.

Initial Order of the President of the United States, Aug. 25,

1989, 54 F.R. 35627, which provided emergency deficit control

measures for fiscal year 1990, was superseded by Final Order of the

President, Oct. 16, 1989, 54 F.R. 42795.

1989 - Final Order of the President of the United States, Oct.

15, 1988, 53 F.R. 40696.

Initial Order of the President of the United States, Aug. 25,

1988, 53 F.R. 32881.

1988 - Pub. L. 100-203, title IV, Sec. 4001, 4041(b), 4061, title

VIII, Sec. 8002, Dec. 22, 1987, 101 Stat. 1330-42, 1330-84,

1330-100, 1330-281.

Pub. L. 100-202, Sec. 1, Dec. 22, 1987, 101 Stat. 1329.

Order of the President of the United States, Nov. 20, 1987, 52

F.R. 44960.

Order of the President of the United States, Oct. 20, 1987, 52

F.R. 39205.

1986 - Pub. L. 99-366, July 31, 1986, 100 Stat. 773.

Pub. L. 99-349, title II, Sec. 202, July 2, 1986, 100 Stat. 748.

Pub. L. 99-255, Mar. 7, 1986, 100 Stat. 39, as amended by Pub. L.

99-322, Sec. 1, May 23, 1986, 100 Stat. 494.

Order of the President of the United States, Feb. 1, 1986, 51

F.R. 4291.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 691c, 901, 903, 905, 906,

907a, 907b, 907c, 907d, 922 of this title; title 21 section 379g.

-CITE-

2 USC Sec. 905 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 905. Exempt programs and activities

-STATUTE-

(a) Social security benefits and tier I railroad retirement

benefits

Benefits payable under the old-age, survivors, and disability

insurance program established under title II of the Social Security

Act (42 U.S.C. 401 et seq.), and benefits payable under section

231b(a), 231b(f)(3), 231c(a), or 231c(f) of title 45, shall be

exempt from reduction under any order issued under this subchapter.

(b) Veterans programs

The following programs shall be exempt from reduction under any

order issued under this subchapter:

National Service Life Insurance Fund (36-8132-0-7-701);

Service-Disabled Veterans Insurance Fund (36-4012-0-3-701);

Veterans Special Life Insurance Fund (36-8455-0-8-701);

Veterans Reopened Insurance Fund (36-4010-0-3-701);

United States Government Life Insurance Fund (36-8150-0-7-701);

Veterans Insurance and Indemnities (36-0120-0-1-701);

Special Therapeutic and Rehabilitation Activities Fund

(36-4048-0-3-703);

Canteen Service Revolving Fund (36-4014-0-3-705);

Benefits under chapter 21 of title 38 relating to specially

adapted housing and mortgage-protection life insurance for

certain veterans with service-connected disabilities

(36-0120-0-1-701);

Benefits under section 2307 of title 38 relating to burial

benefits for veterans who die as a result of service-connected

disability (36-0155-0-1-701);

Benefits under chapter 39 of title 38 relating to automobiles

and adaptive equipment for certain disabled veterans and members

of the Armed Forces (36-0137-0-1-702);

Compensation (36-0153-0-1-701); and

Pensions (36-0154-0-1-701).

Benefits under chapter 35 of title 38 related to educational

assistance for survivors and dependents of certain veterans with

service-connected disabilities (36-0137-0-1-702);

Assistance and services under chapter 31 of title 38 relating

to training and rehabilitation for certain veterans with

service-connected disabilities (36-0137-0-1-702);

Benefits under subchapters I, II, and III of chapter 37 of

title 38 relating to housing loans for certain veterans and for

the spouses and surviving spouses of certain veterans Guaranty

and Indemnity Program Account (36-1119-0-1-704);

Loan Guaranty Program Account (36-1025-0-1-704); and

Direct Loan Program Account (36-1024-0-1-704).

(c) Net interest

No reduction of payments for net interest (all of major

functional category 900) shall be made under any order issued under

this subchapter.

(d) Earned income tax credit

Payments to individuals made pursuant to section 32 of title 26

shall be exempt from reduction under any order issued under this

subchapter.

(e) Non-defense unobligated balances

Unobligated balances of budget authority carried over from prior

fiscal years, except balances in the defense category, shall be

exempt from reduction under any order issued under this subchapter.

(f) Optional exemption of military personnel

(1) In general

The President may, with respect to any military personnel

account, exempt that account from sequestration or provide for a

lower uniform percentage reduction than would otherwise apply.

(2) Limitation

The President may not use the authority provided by paragraph

(1) unless the President notifies the Congress of the manner in

which such authority will be exercised on or before the date

specified in section 904(a) of this title for the budget year.

(g) Other programs and activities

(1)(A) The following budget accounts and activities shall be

exempt from reduction under any order issued under this subchapter:

Activities resulting from private donations, bequests, or

voluntary contributions to the Government;

Activities financed by voluntary payments to the Government for

goods or services to be provided for such payments;

Administration of Territories, Northern Mariana Islands

Covenant grants (14-0412-0-1-806);

Alaska Power Administration, Operations and maintenance

(89-0304-0-1-271);

Appropriations for the District of Columbia (to the extent they

are appropriations of locally raised funds);

Bonneville Power Administration fund and borrowing authority

established pursuant to section 13 of Public Law 93-454 (1974),

as amended (16 U.S.C. 838k) (89-4045-0-3-271);

Bureau of Indian Affairs, Indian land and water claims

settlements and miscellaneous payments to Indians

(14-2303-0-1-452);

Bureau of Indian Affairs Miscellaneous trust funds

(14-9973-0-7-999);

Claims, judgments, and relief acts (20-1895-0-1-808);

Compact of Free Association (14-0415-0-1-808);

Compensation of the President (11-0001-0-1-802);

Conservation Reserve Program (12-2319-0-1-302);

Customs Service, miscellaneous permanent appropriations

(20-9922-0-2-806);

Comptroller of the Currency, Assessment funds

(20-8413-0-8-373);

Dual benefits payments account (60-0111-0-1-601);

Exchange stabilization fund (20-4444-0-3-155);

Farm Credit Administration, Limitation on Administrative

Expenses (78-4131-0-3-351);

Farm Credit System Financial Assistance Corporation, interest

payment (20-1850-0-1-908);

Farm Credit System Financial Assistance Corporation, interest

payments (20-1850-0-1-351);

Federal Deposit Insurance Corporation, Bank Insurance Fund

(51-4064-0-3-373);

Federal Deposit Insurance Corporation, FSLIC Resolution Fund

(51-4065-0-3-373);

Federal Deposit Insurance Corporation, Savings Association

Insurance Fund (51-4066-0-3-373);

Federal Housing Finance Board (95-4039-0-3-371);

Federal payment to the railroad retirement accounts

(60-0113-0-1-601);

Foreign military sales trust fund (11-8242-0-7-155);

Health professions graduate student loan insurance fund program

account (75-0340-0-1-552);

Higher education facilities loans (91-0240-01-502);

Internal Revenue Collections for Puerto Rico (20-5737-0-2-806);

Intragovernmental funds, including those from which the outlays

are derived primarily from resources paid in from other

government accounts, except to the extent such funds are

augmented by direct appropriations for the fiscal year during

which an order is in effect;

Panama Canal Commission, Panama Canal Revolving Fund

(95-4061-0-3-403);

Medical facilities guarantee and loan fund, Federal interest

subsidies for medical facilities (75-9931-0-3-550);

National Credit Union Administration operating fund

(25-4056-0-3-373);

National Credit Union Administration, Central liquidity

facility (25-4470-0-3-373);

National Credit Union Administration, Credit union share

insurance fund (25-4468-0-3-373);

Office of Thrift Supervision (20-4108-0-3-373);

Payment of Vietnam and USS Pueblo prisoner-of-war claims

(15-0104-0-1-153);

Payment to civil service retirement and disability fund

(24-0200-0-1-805);

Payment to Judiciary Trust Funds (10-0941-0-1-752);

Payments to copyright owners (03-5175-0-2-376);

Payments to health care trust funds (75-0580-0-1-571);

Payments to military retirement fund (97-0040-0-1-054);

Payments to social security trust funds (75-0404-0-1-651);

Payments to the foreign service retirement and disability fund

(11-1036-0-1-153 and 19-0540-0-1-153);

Payments to trust funds from excise taxes or other receipts

properly creditable to such trust funds;

Payments to the United States territories, fiscal assistance

(14-0418-0-1-806);

Payments to widows and heirs of deceased Members of Congress

(00-0215-0-1-801);

Postal service fund (18-4020-0-3-372);

Resolution Trust Corporation Revolving Fund (22-4055-0-3-373);

Salaries of Article III judges;

Soldiers and Airmen's Home, payment of claims

(84-8930-0-7-705);

Southeastern Power Administration, Operations and maintenance

(89-0302-0-1-271);

Southwestern Power Administration, Operations and maintenance

(89-0303-0-1-271);

Tennessee Valley Authority fund, except non-power programs and

activities (64-4110-0-3-999);

Thrift Savings Fund;

United States Enrichment Corporation (95-4054-0-3-271);

Vaccine Injury Compensation (75-0320-0-1-551);

Vaccine Injury Compensation Program Trust Fund

(20-8175-0-7-551);

United States Enrichment Corporation;

Washington Metropolitan Area Transit Authority, interest

payments (46-0300-0-1-401);

Western Area Power Administration, Construction,

rehabilitation, operations, and maintenance (89-5068-0-2-271);

and

Western Area Power Administration, Colorado River basins power

marketing fund (89-4452-0-3-271).

(B) The following Federal retirement and disability accounts and

activities shall be exempt from reduction under any order issued

under this subchapter:

Black Lung Disability Trust Fund (20-8144-0-7-601);

Central Intelligence Agency retirement and disability system

fund (56-3400-0-1-054);

Civil service retirement and disability fund (24-8135-0-7-602);

Comptrollers general retirement system (05-0107-0-1-801);

Foreign service retirement and disability fund

(19-8186-0-7-602);

Judicial survivors' annuities fund (10-8110-0-7-602);

Judicial Officers' Retirement Fund (10-8122-0-7-602);

Claims Judges' Retirement Fund (10-8124-0-7-602);

Special workers compensation expenses, Longshoremen's and

harborworkers' compensation benefits (16-9971-0-7-601);

Military retirement fund (97-8097-0-7-602);

National Oceanic and Atmospheric Administration retirement

(13-1450-0-1-306);

Pensions for former Presidents (47-0105-0-1-802);

Railroad Industry Pension Fund (60-8011-0-7-601);

Railroad supplemental annuity pension fund (60-8012-0-7-602);

Retired pay, Coast Guard (69-0241-0-1-403);

Retirement pay and medical benefits for commissioned officers,

Public Health Service (75-0379-0-1-551);

Special benefits, Federal Employees' Compensation Act

(16-1521-0-1-600);

Special benefits for disabled coal miners (75-0409-0-1-601);

and

Tax Court judges survivors annuity fund (23-8115-0-7-602).

(2) Prior legal obligations of the Government in the following

budget accounts and activities shall be exempt from any order

issued under this subchapter:

Biomass energy development (20-0114-0-1-271);

United States Treasury check forgery insurance fund

(20-4109-0-3-803);

Credit liquidating accounts;

Employees life insurance fund (24-8424-0-8-602);

Energy security reserve (Synthetic Fuels Corporation)

(20-0112-0-1-271);

Federal Aviation Administration, Aviation insurance revolving

fund (69-4120-0-3-402);

Federal Crop Insurance Corporation fund (12-4085-0-3-351);

Federal Emergency Management Agency, National flood insurance

fund (58-4236-0-3-453);

Federal Emergency Management Agency, National insurance

development fund (58-4235-0-3-451);

Geothermal resources development fund (89-0206-0-1-271);

Homeowners assistance fund, Defense (97-4090-0-3-051);

International Trade Administration, Operations and

administration (13-1250-0-1-376);

Low-rent public housing, Loans and other expenses

(86-4098-0-3-604);

Maritime Administration, War-risk insurance revolving fund

(69-4302-0-3-403);

Overseas Private Investment Corporation (71-4030-0-3-151);

Pension Benefit Guaranty Corporation fund (16-4204-0-3-601);

Rail service assistance (69-0122-0-1-401); and

Department of Veterans Affairs, Servicemen's group life

insurance fund (36-4009-0-3-701).

(h) Low-income programs

The following programs shall be exempt from reduction under any

order issued under this subchapter:

Block grants to States for temporary assistance for needy

families;

Child nutrition programs (with the exception of special milk

programs) (12-3539-0-1-605);

Temporary assistance for needy families (75-1552-0-1-609);

Contingency fund (75-1522-0-1-609);

Child care entitlement to States (75-1550-0-1-609);

Commodity supplemental food program (12-3512-0-1-605);

Food stamp programs (12-3505-0-1-605 and 12-3550-0-1-605);

Grants to States for Medicaid (75-0512-0-1-55l);

Supplemental Security Income Program (75-0406-0-1-609); and

(FOOTNOTE 1)

(FOOTNOTE 1) So in original. The word ''and'' probably should

follow ''(12-3510-0-1-605);''.

Special supplemental nutrition program for women, infants, and

children (WIC) (12-3510-0-1-605); (FOOTNOTE 1)

Family support payments to States (75-1501-0-1-609); (FOOTNOTE

2)

(FOOTNOTE 2) So in original. The semicolon probably should be a

period.

(i) Identification of programs

For purposes of subsections (b), (g), and (h) of this section,

each account is identified by the designated budget account

identification code number set forth in the Budget of the United

States Government 1998-Appendix, and an activity within an account

is designated by the name of the activity and the identification

code number of the account.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 255, Dec. 12, 1985, 99 Stat. 1082;

Pub. L. 99-509, title VII, Sec. 7002(a), Oct. 21, 1986, 100 Stat.

1949; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub.

L. 100-86, title V, Sec. 506(a), Aug. 10, 1987, 101 Stat. 634; Pub.

L. 100-119, title I, Sec. 104(a)(1), (2), (b), (c)(1), Sept. 29,

1987, 101 Stat. 775-777; Pub. L. 101-73, title VII, Sec. 743(a),

(c), Aug. 9, 1989, 103 Stat. 437; Pub. L. 101-220, Sec. 8, Dec. 12,

1989, 103 Stat. 1881; Pub. L. 101-508, title XIII, Sec. 13101(c),

Nov. 5, 1990, 104 Stat. 1388-589; Pub. L. 102-54, Sec. 13(a), June

13, 1991, 105 Stat. 274; Pub. L. 102-83, Sec. 5(c)(2), Aug. 6,

1991, 105 Stat. 406; Pub. L. 102-486, title IX, Sec. 902(d), Oct.

24, 1992, 106 Stat. 2944; Pub. L. 102-572, title VI, Sec. 601, Oct.

29, 1992, 106 Stat. 4514; Pub. L. 104-193, title I, Sec. 110(r)(1),

Aug. 22, 1996, 110 Stat. 2175; Pub. L. 104-208, div. A, title II,

Sec. 2704(d)(10), Sept. 30, 1996, 110 Stat. 3009-489; Pub. L.

105-33, title X, Sec. 10207, Aug. 5, 1997, 111 Stat. 704.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsec. (a), is act Aug.

14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the

Social Security Act is classified generally to subchapter II (Sec.

401 et seq.) of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see section 1305

of Title 42 and Tables.

The Federal Employees' Compensation Act, referred to in subsec.

(g)(1)(B), which is act Sept. 7, 1916, ch. 458, 39 Stat. 742, was

repealed and the provisions thereof reenacted as subchapter I of

chapter 81 of Title 5, Government Organization and Employees, by

Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 378.

-MISC2-

AMENDMENTS

1997 - Subsec. (b). Pub. L. 105-33, Sec. 10207(a), substituted

''Veterans Insurance and Indemnities'' for ''Veterans Insurance and

Indemnity'', ''Canteen Service Revolving Fund'' for ''Veterans'

Canteen Service Revolving Fund'', ''(36-0120-0-1-701)'' for

''(36-0137-0-1-702)'' in item relating to benefits under chapter 21

of title 38, ''Compensation'' for ''Veterans' compensation'', and

''Pensions'' for ''Veterans' pensions'' and inserted at end items

relating to benefits under chapter 35 of title 38, assistance and

services under chapter 31 of title 38, benefits under subchapters

I, II, and III of chapter 37 of title 38, Loan Guaranty Program

Account, and Direct Loan Program Account.

Subsec. (f). Pub. L. 105-33, Sec. 10207(b), amended heading and

text of subsec. (f) generally. Prior to amendment, text read as

follows: ''Outlays for programs specified in paragraph (1) of

section 907 of this title shall be subject to reduction only in

accordance with the procedures established in section 901(a)(3)(C)

and 906(b) of this title.''

Subsec. (g)(1)(A). Pub. L. 105-33, Sec. 10207(c)(1)(KK), inserted

items relating to Thrift Savings Fund, United States Enrichment

Corporation (95-4054-0-3-271), Vaccine Injury Compensation, and

Vaccine Injury Compensation Program Trust Fund.

Pub. L. 105-33, Sec. 10207(c)(1)(JJ), inserted ''Revolving Fund

(22-4055-0-3-373)'' before semicolon in item relating to the

Resolution Trust Corporation.

Pub. L. 105-33, Sec. 10207(c)(1)(II), struck out ''Resolution

Funding Corporation;'' after item relating to postal service fund.

Pub. L. 105-33, Sec. 10207(c)(1)(HH), substituted ''806'' for

''852'' in item relating to payments to the United States

territories.

Pub. L. 105-33, Sec. 10207(c)(1)(GG), struck out ''Payments to

state and local government fiscal assistance trust fund

(20-2111-0-1-851);'' after item relating to payments to social

security trust funds.

Pub. L. 105-33, Sec. 10207(c)(1)(FF), substituted ''651'' for

''571'' in item relating to payments to social security trust

funds.

Pub. L. 105-33, Sec. 10207(c)(1)(EE), struck out ''Compact of

Free Association, economic assistance pursuant to Public Law 99-658

(14-0415-0-1-806);'' after item relating to payments to military

retirement fund.

Pub. L. 105-33, Sec. 10207(c)(1)(DD), substituted ''571'' for

''572'' in item relating to payments to health care trust funds.

Pub. L. 105-33, Sec. 10207(c)(1)(CC), inserted item relating to

Office of Thrift Supervision.

Pub. L. 105-33, Sec. 10207(c)(1)(BB), substituted ''Credit union

share'' for ''credit union share'' and inserted before semicolon

''(25-4468-0-3-373)'' in third item relating to National Credit

Union Administration.

Pub. L. 105-33, Sec. 10207(c)(1)(AA), substituted ''Central'' for

''central'' and inserted before semicolon ''(25-4470-0-3-373)'' in

second item relating to National Credit Union Administration.

Pub. L. 105-33, Sec. 10207(c)(1)(Z), inserted ''operating fund

(25-4056-0-3-373)'' before semicolon in first item relating to

National Credit Union Administration.

Pub. L. 105-33, Sec. 10207(c)(1)(Y), substituted

''(75-9931-0-3-550)'' for ''(75-4430-0-3-551)'' in item relating to

medical facilities guarantee and loan fund.

Pub. L. 105-33, Sec. 10207(c)(1)(X), substituted ''Panama Canal

Commission, Panama Canal Revolving Fund (95-4061-0-3-403);'' for

''Panama Canal Commission, operating expenses (95-5190-0-2-403),

and Panama Canal Commission, capital outlay (95-5190-0-2-403);''.

Pub. L. 105-33, Sec. 10207(c)(1)(W), substituted ''806'' for

''852'' in item relating to internal revenue collections for Puerto

Rico.

Pub. L. 105-33, Sec. 10207(c)(1)(V), struck out ''and insurance''

after ''Higher education facilities loans''.

Pub. L. 105-33, Sec. 10207(c)(1)(U), inserted ''program account''

after ''fund'' and substituted ''(75-0340-0-1-552)'' for ''(Health

Education Assistance Loan Program) (75-4305-0-3-553)'' in item

relating to health professions graduate student loan insurance

fund.

Pub. L. 105-33, Sec. 10207(c)(1)(T), substituted ''accounts'' for

''account'' after ''Federal payment to the railroad retirement''.

Pub. L. 105-33, Sec. 10207(c)(1)(S), inserted

''(95-4039-0-3-371)'' before semicolon in item relating to Federal

Housing Finance Board.

Pub. L. 105-33, Sec. 10207(c)(1)(R), inserted

''(51-4066-0-3-373)'' before semicolon in third item relating to

Federal Deposit Insurance Corporation.

Pub. L. 105-33, Sec. 10207(c)(1)(Q), inserted

''(51-4065-0-3-373)'' before semicolon in second item relating to

Federal Deposit Insurance Corporation.

Pub. L. 105-33, Sec. 10207(c)(1)(P), inserted

''(51-4064-0-3-373)'' before semicolon in first item relating to

Federal Deposit Insurance Corporation.

Pub. L. 105-33, Sec. 10207(c)(1)(O), struck out ''Federal Deposit

Insurance Corporation;'' after item relating to Farm Credit System

Financial Assistance Corporation, interest payments

(20-1850-0-1-351).

Pub. L. 105-33, Sec. 10207(c)(1)(N), inserted items relating to

Farm Credit Administration and Farm Credit System Financial

Assistance Corporation, interest payment (20-1850-0-1-908).

Pub. L. 105-33, Sec. 10207(c)(1)(M), struck out ''Eastern Indian

land claims settlement fund (14-2202-0-1-806);'' after item

relating to dual benefits payments account.

Pub. L. 105-33, Sec. 10207(c)(1)(L), struck out ''Director of the

Office of Thrift Supervision;'' after item relating to Comptroller

of the Currency.

Pub. L. 105-33, Sec. 10207(c)(1)(K), inserted '', Assessment

funds (20-8413-0-8-373)'' before semicolon in item relating to the

Comptroller of the Currency.

Pub. L. 105-33, Sec. 10207(c)(1)(J), substituted ''806'' for

''852'' in item relating to the Customs Service.

Pub. L. 105-33, Sec. 10207(c)(1)(I), inserted item relating to

Conservation Reserve Program.

Pub. L. 105-33, Sec. 10207(c)(1)(H), inserted item relating to

Compact of Free Association.

Pub. L. 105-33, Sec. 10207(c)(1)(G), struck out ''Coinage profit

fund (20-5811-0-2-803);'' after item relating to claims, judgments,

and relief acts.

Pub. L. 105-33, Sec. 10207(c)(1)(F), substituted ''808'' for

''806'' in item relating to claims, judgments, and relief acts.

Pub. L. 105-33, Sec. 10207(c)(1)(E), struck out ''Claims, defense

(97-0102-0-1-051);'' after second item relating to Bureau of Indian

Affairs.

Pub. L. 105-33, Sec. 10207(c)(1)(D), substituted ''Miscellaneous

trust funds'' for ''miscellaneous trust funds, tribal trust funds''

in second item relating to Bureau of Indian Affairs.

Pub. L. 105-33, Sec. 10207(c)(1)(C), inserted ''Indian land and

water claims settlements and'' after comma in first item relating

to Bureau of Indian Affairs.

Pub. L. 105-33, Sec. 10207(c)(1)(B), struck out ''Thrift Savings

Fund (26-8141-0-7-602);'' after item relating to administration of

Territories, Northern Mariana Islands Covenant grants.

Pub. L. 105-33, Sec. 10207(c)(1)(A), inserted item relating to

activities financed by voluntary payments to Government.

Subsec. (g)(1)(B). Pub. L. 105-33, Sec. 10207(c)(2)(E),

substituted ''Railroad Industry Pension Fund'' for ''Railroad

retirement tier II''.

Pub. L. 105-33, Sec. 10207(c)(2)(D), inserted ''Special workers

compensation expenses,'' before ''Longshoremen's and harborworkers'

compensation benefits''.

Pub. L. 105-33, Sec. 10207(c)(2)(C), substituted ''Claims Judges'

Retirement Fund'' for ''Court of Federal Claims Judges' Retirement

Fund''.

Pub. L. 105-33, Sec. 10207(c)(2)(B), substituted ''Black Lung

Disability Trust Fund'' for ''Black lung benefits''.

Pub. L. 105-33, Sec. 10207(c)(2)(A), substituted ''The following

Federal retirement and disability accounts'' for ''The following

budget accounts'' in introductory provisions.

Subsec. (g)(2). Pub. L. 105-33, Sec. 10207(c)(3)(E), struck out

items ''Credit union share insurance fund (25-4468-0-3-371);'' and

''Economic development revolving fund (13-4406-0-3-452);'' after

item relating to credit liquidating accounts, item ''Export-Import

Bank of the United States, Limitation of program activity

(83-4027-0-3-155);'' after item relating to energy security reserve

(Synthetic Fuels Corporation), item ''Federal Deposit Insurance

Corporation (51-8419-0-8-371);'' after item relating to Federal

Crop Insurance Corporation fund, items ''Federal Housing

Administration fund (86-4070-0-3-371);'', ''Federal ship financing

fund (69-4301-0-3-403);'', and ''Federal ship financing fund,

fishing vessels (13-4417-0-3-376);'' after item relating to Federal

Emergency Management Agency National insurance development fund,

items ''Government National Mortgage Association, Guarantees of

mortgage-backed securities (86-4238-0-3-371);'' and ''Health

education loans (75-4307-0-3-553);'' after item relating to

geothermal resources development fund, item ''Indian loan guarantee

and insurance fund (14-4410-0-3-452);'' after item relating to

homeowners assistance fund, defense, and items ''Railroad

rehabilitation and improvement financing fund (69-4411-0-3-401);'',

''Rural development insurance fund (12-4155-0-3-452);'', ''Rural

electric and telephone revolving fund (12-4230-8-3-271);'', ''Rural

housing insurance fund (12-4141-0-3-371);'', ''Small Business

Administration, Business loan and investment fund

(73-4154-0-3-376);'', ''Small Business Administration, Lease

guarantees revolving fund (73-4157-0-3-376);'', ''Small Business

Administration, Pollution control equipment contract guarantee

revolving fund (73-4147-0-3-376);'', ''Small Business

Administration, Surety bond guarantees revolving fund

(73-4156-0-3-376);'', and ''Department of Veterans Affairs, Loan

guaranty revolving fund (36-4025-0-3-704);'' after item relating to

rail service assistance.

Pub. L. 105-33, Sec. 10207(c)(3)(D), inserted item relating to

credit liquidating accounts.

Pub. L. 105-33, Sec. 10207(c)(3)(C), struck out ''Community

development grant loan guarantees (86-0162-0-1-451);'' after item

relating to United States Treasury check forgery insurance fund.

Pub. L. 105-33, Sec. 10207(c)(3)(B), substituted ''United States

Treasury check forgery insurance fund'' for ''Check forgery

insurance fund''.

Pub. L. 105-33, Sec. 10207(c)(3)(A), struck out items ''Agency

for International Development, Housing, and other credit guarantee

programs (72-4340-0-3-151);'' and ''Agricultural credit insurance

fund (12-4140-0-3-351);'' after ''order issued under this

subchapter:''.

Subsec. (h). Pub. L. 105-33, Sec. 10207(f), struck out heading

and text of subsec. (h) relating to optional exemption of military

personnel. Text read as follows:

''(1) The President may, with respect to any military personnel

account, exempt that account from sequestration or provide for a

lower uniform percentage reduction than would otherwise apply.

''(2) The President may not use the authority provided by

paragraph (1) unless he notifies the Congress of the manner in

which such authority will be exercised on or before the initial

snapshot date for the budget year.''

Pub. L. 105-33, Sec. 10207(d)(4), inserted item relating to

family support payments to States.

Pub. L. 105-33, Sec. 10207(d)(3), substituted item relating to

special supplemental nutrition program for women, infants, and

children (WIC) for ''Women, infants, and children program

(12-3510-0-1-605).''.

Pub. L. 105-33, Sec. 10207(d)(2), inserted items relating to

temporary assistance for needy families, contingency fund, and

child care entitlement to States.

Pub. L. 105-33, Sec. 10207(d)(1), substituted item relating to

child nutrition programs for ''Child nutrition

(12-3539-0-1-605);''.

Subsec. (i). Pub. L. 105-33, Sec. 10207(e), amended heading and

text of subsec. (i) generally. Prior to amendment, text read as

follows: ''For purposes of subsections (g) and (h) of this section,

programs are identified by the designated budget account

identification code numbers set forth in the Budget of the United

States Government, 1986 - Appendix.''

1996 - Subsec. (g)(1)(A). Pub. L. 104-208, which directed the

amendment of subpar. (A) by substituting ''Deposit Insurance Fund''

for ''Bank Insurance Fund'' and by striking ''Federal Deposit

Insurance Corporation, Savings Association Insurance fund;'', was

not executed. See Effective Date of 1996 Amendments note below.

Subsec. (h). Pub. L. 104-193 substituted ''Block grants to States

for temporary assistance for needy families;'' for ''Aid to

families with dependent children (75-0412-0-1-609);''.

1992 - Subsec. (g)(1)(A). Pub. L. 102-572, Sec. 601(b), inserted

item relating to payment to Judiciary Trust Funds.

Pub. L. 102-486 inserted item relating to United States

Enrichment Corporation.

Subsec. (g)(1)(B). Pub. L. 102-572, Sec. 601(a), inserted items

relating to Judicial Officers' Retirement Fund and Court of Federal

Claims Judges' Retirement Fund.

1991 - Subsec. (b). Pub. L. 102-83 substituted ''section 2307 of

title 38'' for ''section 907 of title 38'' in item relating to

burial benefits for veterans.

Subsec. (g)(2). Pub. L. 102-54 substituted last two items

relating to Department of Veterans Affairs for items relating to

Veterans Administration, Loan guaranty revolving fund, and Veterans

Administration, Servicemen's group life insurance fund.

1990 - Subsec. (a). Pub. L. 101-508, Sec. 13101(c)(1), amended

subsec. (a) generally. Prior to amendment, subsec. (a) read as

follows: ''Increases in benefits payable under the old-age,

survivors, and disability insurance program established under title

II of the Social Security Act, or in benefits payable under section

231b(a), 231b(f)(3), 231c(a), or 231c(f) of title 45, shall not be

considered ''automatic spending increases'' for purposes of this

title; and no reduction in any such increase or in any of the

benefits involved shall be made under any order issued under this

subchapter.''

Subsec. (e). Pub. L. 101-508, Sec. 13101(c)(2), amended subsec.

(e) generally. Prior to amendment, subsec. (e) read as follows:

''Offsetting receipts and collections shall not be reduced under

any order issued under this subchapter.''

Subsec. (g)(1)(B). Pub. L. 101-508, Sec. 13101(c)(3), inserted

item relating to railroad supplemental annuity pension fund.

Subsec. (h). Pub. L. 101-508, Sec. 13101(c)(4), added subsec. (h)

relating to optional exemption of military personnel.

1989 - Subsec. (g)(1)(A). Pub. L. 101-220 inserted item relating

to Farm Credit System Financial Assistance Corporation, interest

payments, after item relating to Exchange stabilization fund.

Pub. L. 101-73, Sec. 743(a)(1), inserted item relating to

Director of the Office of Thrift Supervision after item relating to

Comptroller of the Currency.

Pub. L. 101-73, Sec. 743(a)(2), substituted items relating to

Federal Deposit Insurance Corporation, Bank Insurance Fund; Federal

Deposit Insurance Corporation, FSLIC Resolution Fund; and Federal

Deposit Insurance Corporation, Savings Association Insurance Fund;

for item relating to Federal Home Loan Bank Board.

Pub. L. 101-73, Sec. 743(a)(3), substituted item relating to

Federal Housing Finance Board for item relating to Federal Home

Loan Bank Board, Federal Savings and Loan Insurance Corporation.

Pub. L. 101-73, Sec. 743(a)(4), inserted items relating to

Resolution Funding Corporation and Resolution Trust Corporation

after item relating to Postal service fund.

Subsec. (g)(2). Pub. L. 101-73, Sec. 743(c), struck out item

relating to Federal Savings and Loan Insurance Corporation fund

(82-4037-0-3-371).

1987 - Subsec. (b). Pub. L. 100-119, Sec. 104(b)(1), inserted

items relating to National Service Life Insurance Fund,

Service-Disabled Veterans Insurance Fund, Veterans Special Life

Insurance Fund, Veterans Reopened Insurance Fund, United States

Government Life Insurance Fund, Veterans Insurance and Indemnity,

Special Therapeutic and Rehabilitation Activities Fund, Veterans'

Canteen Service Revolving Fund, benefits under chapter 21 of title

38 relating to specially adapted and mortgage-protection life

insurance for certain veterans and service-connected disabilities,

benefits under section 907 of title 38 relating to burial benefits

for veterans who die as a result of service-connected disability,

and benefits under chapter 39 of title 38 relating to automobiles

and adaptive equipment for certain disabled veterans and members of

the Armed Forces.

Subsec. (g)(1). Pub. L. 100-119, Sec. 104(a)(2), (b)(2), (3),

designated existing provisions of par. (1) as subpar. (A); inserted

items relating to Administration of Territories, Northern Mariana

Islands Covenant grants, Thrift Savings Fund, Bureau of Indian

Affairs, miscellaneous payments to Indians, Customs Service,

miscellaneous permanent appropriations, higher education facilities

loans and insurance, Internal Revenue Collections for Puerto Rico,

Panama Canal Commission operating expenses and Panama Canal

Commission capital outlay, to medical facilities guarantee and loan

fund, Federal interest subsidies for medical facilities, Compact of

Free Association, economic assistance pursuant to Public Law

99-658, payments to United States territories, fiscal assistance,

payments to widows and heirs of deceased Members of Congress, and

Washington Metropolitan Area Transit Authority, interest payments;

and added subpar. (B).

Pub. L. 100-86 inserted items relating to Comptroller of the

Currency; Federal Deposit Insurance Corporation; Federal Home Loan

Bank Board; Federal Home Loan Bank Board, Federal Savings and Loan

Insurance Corporation; National Credit Union Administration;

National Credit Union Administration, central liquidity facility;

and National Credit Union Administration, credit union share

insurance fund.

Subsec. (g)(2). Pub. L. 100-119, Sec. 104(c)(1), struck out

following items relating to Veterans Administration: national

service life insurance fund, service-disabled veterans insurance

fund, United States Government life insurance fund, veterans

insurance and indemnities, veterans reopened insurance fund, and

veterans special life insurance fund.

Subsec. (h). Pub. L. 100-119, Sec. 104(a)(1), inserted item

relating to commodity supplemental food program.

1986 - Subsec. (d). Pub. L. 99-514 substituted ''Internal Revenue

Code of 1986'' for ''Internal Revenue Code of 1954'', which for

purposes of codification was translated as ''title 26'' thus

requiring no change in text.

Subsec. (g)(1). Pub. L. 99-509 inserted item relating to dual

benefits payments account.

EFFECTIVE DATE OF 1996 AMENDMENTS

Amendment by Pub. L. 104-208 effective Jan. 1, 1999, if no

insured depository institution is a savings association on that

date, see section 2704(c) of Pub. L. 104-208, set out as a note

under section 1821 of Title 12, Banks and Banking.

Amendment by Pub. L. 104-193 effective July 1, 1997, with

transition rules relating to State options to accelerate such date,

rules relating to claims, actions, and proceedings commenced before

such date, rules relating to closing out of accounts for terminated

or substantially modified programs and continuance in office of

Assistant Secretary for Family Support, and provisions relating to

termination of entitlement under AFDC program, see section 116 of

Pub. L. 104-193, as amended, set out as an Effective Date note

under section 601 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 1101(a) of Pub. L. 102-572 provided that: ''Except as

otherwise provided in this Act, the provisions of this Act and the

amendments made by this Act (see Tables for classification) shall

take effect on January 1, 1993.''

EFFECTIVE DATE OF 1986 AMENDMENT

Section 7002(b) of Pub. L. 99-509 provided that: ''The amendment

made by subsection (a) (amending this section) shall apply to

fiscal years beginning after September 30, 1986.''

SOLDIERS' AND AIRMEN'S HOME

The Soldiers' and Airmen's Home, referred to in subsec.

(g)(1)(A), was incorporated into the Armed Forces Retirement Home

by section 411 of Title 24, Hospitals and Asylums.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions, personnel, assets, and liabilities of

the United States Customs Service of the Department of the

Treasury, including functions of the Secretary of the Treasury

relating thereto, to the Secretary of Homeland Security, and for

treatment of related references, see sections 203(1), 551(d),

552(d), and 557 of Title 6, Domestic Security, and the Department

of Homeland Security Reorganization Plan of November 25, 2002, as

modified, set out as a note under section 542 of Title 6.

For transfer of functions, personnel, assets, and liabilities of

the Federal Emergency Management Agency, including the functions of

the Director of the Federal Emergency Management Agency relating

thereto, to the Secretary of Homeland Security, and for treatment

of related references, see sections 313(1), 551(d), 552(d), and 557

of Title 6, Domestic Security, and the Department of Homeland

Security Reorganization Plan of November 25, 2002, as modified, set

out as a note under section 542 of Title 6.

TERMINATION OF UNITED STATES SYNTHETIC FUELS CORPORATION

The United States Synthetic Fuels Corporation was terminated by

Pub. L. 99-272, title VII, Sec. 7403(b), Apr. 7, 1986, 100 Stat.

144, set out as a note under section 8791 of Title 42, The Public

Health and Welfare.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 901, 904 of this title;

title 16 section 839d-1; title 38 section 7298.

-CITE-

2 USC Sec. 906 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 906. General and special sequestration rules

-STATUTE-

(a) Automatic spending increases

Automatic spending increases are increases in outlays due to

changes in indexes in the following programs:

(1) Special milk program; and

(2) Vocational rehabilitation basic State grants.

In those programs all amounts other than the automatic spending

increases shall be exempt from reduction under any order issued

under this subchapter.

(b) Student loans

For all student loans under part B or D of title IV of the Higher

Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq.) made

during the period when a sequestration order under section 904 of

this title is in effect as required by section 902 or 903 of this

title, origination fees under sections 438(c)(2) and 455(c) of that

Act (20 U.S.C. 1087-1(c)(2), 1087e(c)) shall each be increased by

0.50 percentage point.

(c) Treatment of foster care and adoption assistance programs

Any order issued by the President under section 904 of this title

shall make the reduction which is otherwise required under the

foster care and adoption assistance programs (established by part E

of title IV of the Social Security Act (42 U.S.C. 670 et seq.))

only with respect to payments and expenditures made by States in

which increases in foster care maintenance payment rates or

adoption assistance payment rates (or both) are to take effect

during the fiscal year involved, and only to the extent that the

required reduction can be accomplished by applying a uniform

percentage reduction to the Federal matching payments that each

such State would otherwise receive under section 474 of that Act

(42 U.S.C. 674) (for such fiscal year) for that portion of the

State's payments which is attributable to the increases taking

effect during that year. No State's matching payments from the

Federal Government for foster care maintenance payments or for

adoption assistance maintenance payments may be reduced by a

percentage exceeding the applicable domestic sequestration

percentage. No State may, after December 12, 1985, make any change

in the timetable for making payments under a State plan approved

under part E of title IV of the Social Security Act which has the

effect of changing the fiscal year in which expenditures under such

part are made.

(d) Special rules for Medicare program

(1) Calculation of reduction in individual payment amounts

To achieve the total percentage reduction in those programs

required by sections 902 and 903 of this title, and

notwithstanding section 710 of the Social Security Act (42 U.S.C.

911), OMB shall determine, and the applicable Presidential order

under section 904 of this title shall implement, the percentage

reduction that shall apply to payments under the health insurance

programs under title XVIII of the Social Security Act (42 U.S.C.

1395 et seq.) for services furnished after the order is issued,

such that the reduction made in payments under that order shall

achieve the required total percentage reduction in those payments

for that fiscal year as determined on a 12-month basis.

(2) Timing of application of reductions

(A) In general

Except as provided in subparagraph (B), if a reduction is

made under paragraph (1) in payment amounts pursuant to a

sequestration order, the reduction shall be applied to payment

for services furnished during the effective period of the

order. For purposes of the previous sentence, in the case of

inpatient services furnished for an individual, the services

shall be considered to be furnished on the date of the

individual's discharge from the inpatient facility.

(B) Payment on the basis of cost reporting periods

In the case in which payment for services of a provider of

services is made under title XVIII of the Social Security Act

(42 U.S.C. 1395 et seq.) on a basis relating to the reasonable

cost incurred for the services during a cost reporting period

of the provider, if a reduction is made under paragraph (1) in

payment amounts pursuant to a sequestration order, the

reduction shall be applied to payment for costs for such

services incurred at any time during each cost reporting period

of the provider any part of which occurs during the effective

period of the order, but only (for each such cost reporting

period) in the same proportion as the fraction of the cost

reporting period that occurs during the effective period of the

order.

(3) No increase in beneficiary charges in assignment-related

cases

If a reduction in payment amounts is made under paragraph (1)

for services for which payment under part B of title XVIII of the

Social Security Act (42 U.S.C. 1395j et seq.) is made on the

basis of an assignment described in section 1842(b)(3)(B)(ii) (42

U.S.C. 1395u(b)(3)(B)(ii)), in accordance with section

1842(b)(6)(B) (42 U.S.C. 1395u(b)(6)(B)), or under the procedure

described in section 1870(f)(1) (42 U.S.C. 1395gg(f)(1)), of such

Act, the person furnishing the services shall be considered to

have accepted payment of the reasonable charge for the services,

less any reduction in payment amount made pursuant to a

sequestration order, as payment in full.

(4) No effect on computation of AAPCC

In computing the adjusted average per capita cost for purposes

of section 1876(a)(4) of the Social Security Act (42 U.S.C.

1395mm(a)(4)), the Secretary of Health and Human Services shall

not take into account any reductions in payment amounts which

have been or may be effected under this subchapter.

(e) Community and migrant health centers, Indian health services

and facilities, and veterans' medical care

(1) The maximum permissible reduction in budget authority for any

account listed in paragraph (2) for any fiscal year, pursuant to an

order issued under section 904 of this title, shall be 2 percent.

(2) The accounts referred to in paragraph (1) are as follows:

(A) Community health centers (75-0350-0-1-550).

(B) Migrant health centers (75-0350-0-1-550).

(C) Indian health facilities (75-0391-0-1-551).

(D) Indian health services (75-0390-0-1-551).

(E) Veterans' medical care (36-0160-0-1-703).

For purposes of the preceding provisions of this paragraph,

programs are identified by the designated budget account

identification code numbers set forth in the Budget of the United

States Government - Appendix.

(f) Treatment of child support enforcement program

Notwithstanding any change in the display of budget accounts, any

order issued by the President under section 904 of this title shall

accomplish the full amount of any required reduction in

expenditures under sections 455 and 458 of the Social Security Act

(42 U.S.C. 655, 658a) by reducing the Federal matching rate for

State administrative costs under such program, as specified (for

the fiscal year involved) in section 455(a) of such Act, to the

extent necessary to reduce such expenditures by that amount.

(g) Federal pay

(1) In general

For purposes of any order issued under section 904 of this

title -

(A) Federal pay under a statutory pay system, and

(B) elements of military pay,

shall be subject to reduction under an order in the same manner

as other administrative expense components of the Federal budget;

except that no such order may reduce or have the effect of

reducing the rate of pay to which any individual is entitled

under any such statutory pay system (as increased by any amount

payable under section 5304 of title 5 or section 302 of the

Federal Employees Pay Comparability Act of 1990) or the rate of

any element of military pay to which any individual is entitled

under title 37, or any increase in rates of pay which is

scheduled to take effect under section 5303 of title 5, section

1009 of title 37, or any other provision of law.

(2) Definitions

For purposes of this subsection:

(A) The term ''statutory pay system'' shall have the meaning

given that term in section 5302(1) of title 5.

(B) The term ''elements of military pay'' means -

(i) the elements of compensation of members of the

uniformed services specified in section 1009 of title 37,

(ii) allowances provided members of the uniformed services

under sections 403a and 405 of such title, and

(iii) cadet pay and midshipman pay under section 203(c) of

such title.

(C) The term ''uniformed services'' shall have the meaning

given that term in section 101(3) of title 37.

(h) Treatment of Federal administrative expenses

(1) Notwithstanding any other provision of this title, (FOOTNOTE

1) administrative expenses incurred by the departments and

agencies, including independent agencies, of the Federal Government

in connection with any program, project, activity, or account shall

be subject to reduction pursuant to an order issued under section

904 of this title, without regard to any exemption, exception,

limitation, or special rule which is otherwise applicable with

respect to such program, project, activity, or account under this

subchapter.

(FOOTNOTE 1) See References in Text note below.

(2) Notwithstanding any other provision of law, administrative

expenses of any program, project, activity, or account which is

self-supporting and does not receive appropriations shall be

subject to reduction under a sequester order, unless specifically

exempted in this subchapter.

(3) Payments made by the Federal Government to reimburse or match

administrative costs incurred by a State or political subdivision

under or in connection with any program, project, activity, or

account shall not be considered administrative expenses of the

Federal Government for purposes of this section, and shall be

subject to reduction or sequestration under this subchapter to the

extent (and only to the extent) that other payments made by the

Federal Government under or in connection with that program,

project, activity, or account are subject to such reduction or

sequestration; except that Federal payments made to a State as

reimbursement of administrative costs incurred by such State under

or in connection with the unemployment compensation programs

specified in subsection (h)(1) (FOOTNOTE 1) of this section shall

be subject to reduction or sequestration under this subchapter

notwithstanding the exemption otherwise granted to such programs

under that subsection.

(4) Notwithstanding any other provision of law, this subsection

shall not apply with respect to the following:

(A) Comptroller of the Currency.

(B) Federal Deposit Insurance Corporation.

(C) Office of Thrift Supervision.

(D) National Credit Union Administration.

(E) National Credit Union Administration, central liquidity

facility.

(F) Federal Retirement Thrift Investment Board.

(G) Resolution Trust Corporation.

(H) Farm Credit Administration.

(i) Treatment of payments and advances made with respect to

unemployment compensation programs

(1) For purposes of section 904 of this title -

(A) any amount paid as regular unemployment compensation by a

State from its account in the Unemployment Trust Fund

(established by section 904(a) of the Social Security Act (42

U.S.C. 1104(a))),

(B) any advance made to a State from the Federal unemployment

account (established by section 904(g) of such Act (42 U.S.C.

1104(g))) under title XII of such Act (42 U.S.C. 1321 et seq.)

and any advance appropriated to the Federal unemployment account

pursuant to section 1203 of such Act (42 U.S.C. 1323), and

(C) any payment made from the Federal Employees Compensation

Account (as established under section 909 of such Act (42 U.S.C.

1109)) for the purpose of carrying out chapter 85 of title 5 and

funds appropriated or transferred to or otherwise deposited in

such Account,

shall not be subject to reduction.

(2)(A) A State may reduce each weekly benefit payment made under

the Federal-State Extended Unemployment Compensation Act of 1970

for any week of unemployment occurring during any period with

respect to which payments are reduced under an order issued under

section 904 of this title by a percentage not to exceed the

percentage by which the Federal payment to the State under section

204 of such Act is to be reduced for such week as a result of such

order.

(B) A reduction by a State in accordance with subparagraph (A)

shall not be considered as a failure to fulfill the requirements of

section 3304(a)(11) of title 26.

(j) Commodity Credit Corporation

(1) Powers and authorities of the Commodity Credit Corporation

This title (FOOTNOTE 2) shall not restrict the Commodity Credit

Corporation in the discharge of its authority and responsibility

as a corporation to buy and sell commodities in world trade, to

use the proceeds as a revolving fund to meet other obligations

and otherwise operate as a corporation, the purpose for which it

was created.

(FOOTNOTE 2) See References in Text note below.

(2) Reduction in payments made under contracts

(A) Loan eligibility under any contract entered into with a

person by the Commodity Credit Corporation prior to the time an

order has been issued under section 904 of this title shall not

be reduced by an order subsequently issued. Subject to

subparagraph (B), after an order is issued under such section for

a fiscal year, any cash payments for loans or loan deficiencies

made by the Commodity Credit Corporation shall be subject to

reduction under the order.

(B) Each loan contract entered into with producers or producer

cooperatives with respect to a particular crop of a commodity and

subject to reduction under subparagraph (A) shall be reduced in

accordance with the same terms and conditions. If some, but not

all, contracts applicable to a crop of a commodity have been

entered into prior to the issuance of an order under section 904

of this title, the order shall provide that the necessary

reduction in payments under contracts applicable to the commodity

be uniformly applied to all contracts for the next succeeding

crop of the commodity, under the authority provided in paragraph

(3).

(3) Delayed reduction in outlays permissible

Notwithstanding any other provision of this title, (FOOTNOTE 2)

if an order under section 904 of this title is issued with

respect to a fiscal year, any reduction under the order

applicable to contracts described in paragraph (1) may provide

for reductions in outlays for the account involved to occur in

the fiscal year following the fiscal year to which the order

applies.

(4) Uniform percentage rate of reduction and other limitations

All reductions described in paragraph (2) which are required to

be made in connection with an order issued under section 904 of

this title with respect to a fiscal year shall be made so as to

ensure that outlays for each program, project, activity, or

account involved are reduced by a percentage rate that is uniform

for all such programs, projects, activities, and accounts, and

may not be made so as to achieve a percentage rate of reduction

in any such item exceeding the rate specified in the order.

(5) Dairy program

Notwithstanding any other provision of this subsection, as the

sole means of achieving any reduction in outlays under the milk

price support program, the Secretary of Agriculture shall provide

for a reduction to be made in the price received by producers for

all milk produced in the United States and marketed by producers

for commercial use. That price reduction (measured in cents per

hundred weight of milk marketed) shall occur under section

1446(d)(2)(A) of title 7, shall begin on the day any

sequestration order is issued under section 904 of this title,

and shall not exceed the aggregate amount of the reduction in

outlays under the milk price support program that otherwise would

have been achieved by reducing payments for the purchase of milk

or the products of milk under this subsection during the

applicable fiscal year.

(6) Certain authority not to be limited

Nothing in this joint resolution shall limit or reduce, in any

way, any appropriation that provides the Commodity Credit

Corporation with budget authority to cover the Corporation's net

realized losses.

(k) Effects of sequestration

The effects of sequestration shall be as follows:

(1) Budgetary resources sequestered from any account shall be

permanently cancelled, except as provided in paragraph (5).

(2) Except as otherwise provided, the same percentage

sequestration shall apply to all programs, projects, and

activities within a budget account (with programs, projects, and

activities as delineated in the appropriation Act or accompanying

report for the relevant fiscal year covering that account, or for

accounts not included in appropriation Acts, as delineated in the

most recently submitted President's budget).

(3) Administrative regulations or similar actions implementing

a sequestration shall be made within 120 days of the

sequestration order. To the extent that formula allocations

differ at different levels of budgetary resources within an

account, program, project, or activity, the sequestration shall

be interpreted as producing a lower total appropriation, with the

remaining amount of the appropriation being obligated in a manner

consistent with program allocation formulas in substantive law.

(4) Except as otherwise provided, obligations in sequestered

accounts shall be reduced only in the fiscal year in which a

sequester occurs.

(5) If an automatic spending increase is sequestered, the

increase (in the applicable index) that was disregarded as a

result of that sequestration shall not be taken into account in

any subsequent fiscal year.

(6) Budgetary resources sequestered in revolving, trust, and

special fund accounts and offsetting collections sequestered in

appropriation accounts shall not be available for obligation

during the fiscal year in which the sequestration occurs, but

shall be available in subsequent years to the extent otherwise

provided in law.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 256, Dec. 12, 1985, 99 Stat. 1086;

Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L.

100-86, title V, Sec. 506(b), Aug. 10, 1987, 101 Stat. 634; Pub. L.

100-119, title I, Sec. 102(b)(2), (3), (11), 104(a)(3), (4), Sept.

29, 1987, 101 Stat. 773, 775, 776; Pub. L. 101-73, title VII, Sec.

743(b), Aug. 9, 1989, 103 Stat. 437; Pub. L. 101-508, title XIII,

Sec. 13101(d), Nov. 5, 1990, 104 Stat. 1388-589; Pub. L. 101-509,

title V, Sec. 529 (title I, Sec. 101(b)(2)(A), (4)(H)), Nov. 5,

1990, 104 Stat. 1427, 1439, 1440; Pub. L. 104-193, title I, Sec.

110(r)(2), Aug. 22, 1996, 110 Stat. 2175; Pub. L. 105-33, title X,

Sec. 10208(a)(1), (b)-(g), Aug. 5, 1997, 111 Stat. 708-710.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-REFTEXT-

REFERENCES IN TEXT

The Higher Education Act of 1965, referred to in subsec. (b), is

Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Parts B

and D of title IV of the Act are classified generally to parts B

(Sec. 1071 et seq.) and C (Sec. 1087a et seq.) of subchapter IV of

chapter 28 of Title 20, Education. For complete classification of

this Act to the Code, see Short Title note set out under section

1001 of Title 20 and Tables.

The Social Security Act, referred to in subsecs. (c), (d)(1),

(2)(B), (3), and (i)(1)(B), is act Aug. 14, 1935, ch. 531, 49 Stat.

620, as amended. Part E of title IV of the Social Security Act is

classified generally to part E (Sec. 670 et seq.) of subchapter IV

of chapter 7 of Title 42, The Public Health and Welfare. Titles XII

and XVIII of the Social Security Act are classified generally to

subchapters XII (Sec. 1321 et seq.) and XVIII (Sec. 1395 et seq.),

respectively, of chapter 7 of Title 42. Part B of title XVIII of

the Social Security Act is classified generally to part B (Sec.

1395j et seq.) of subchapter XVIII of chapter 7 of Title 42. For

complete classification of this Act to the Code, see section 1305

of Title 42 and Tables.

Section 302 of the Federal Employees Pay Comparability Act of

1990, referred to in subsec. (g)(1), is section 529 (title III,

Sec. 302) of Pub. L. 101-509, which is set out as a note under

section 5304 of Title 5, Government Organization and Employees.

This title, referred to in subsecs. (h)(1) and (j)(1), (3), means

title II (Sec. 200 et seq.) of Pub. L. 99-177, Dec. 12, 1985, 99

Stat. 1038, known as the Balanced Budget and Emergency Deficit

Control Act of 1985. For complete classification of this Act to the

Code, see Short Title note set out under section 900 of this title

and Tables.

This joint resolution, referred to in subsec. (j)(6), means Pub.

L. 99-177, Dec. 12, 1985, 99 Stat. 1037, as amended, which enacted

this chapter and sections 654 to 656 of this title, amended

sections 602, 622, 631 to 642, and 651 to 653 of this title,

sections 1104 to 1106, 1109, and 3101 of Title 31, Money and

Finance, and section 911 of Title 42, The Public Health and

Welfare, repealed section 661 of this title, enacted provisions set

out as notes under section 900 of this title and section 911 of

Title 42, and amended provisions set out as a note under section

621 of this title. For complete classification of this Act to the

Code, see Tables.

Subsec. (h)(1) of this section, referred to in subsec. (h)(3),

was redesignated subsec. (i)(1) of this section by Pub. L. 101-508,

title XIII, Sec. 13101(d)(2), Nov. 5, 1990, 104 Stat. 1388-589.

The Federal-State Extended Unemployment Compensation Act of 1970,

referred to in subsec. (i)(2)(A), is title II of Pub. L. 91-373,

Aug. 10, 1970, 84 Stat. 708, as amended, which is classified

generally as a note under section 3304 of Title 26, Internal

Revenue Code. Section 204 of such Act is set out in the note under

section 3304 of Title 26. For complete classification of this Act

to the Code, see Tables.

-MISC2-

AMENDMENTS

1997 - Pub. L. 105-33, Sec. 10208(a)(1), substituted ''General

and special sequestration rules'' for ''Exceptions, limitations,

and special rules'' as section catchline.

Subsec. (a). Pub. L. 105-33, Sec. 10208(b), redesignated pars.

(2) and (3) as (1) and (2), respectively, and struck out former

par. (1) which read as follows: ''National Wool Act;''.

Subsec. (b). Pub. L. 105-33, Sec. 10208((c)), amended subsec. (b)

generally, substituting new heading and text for former text

consisting of pars. (1) to (3) relating to reductions required to

be achieved from student loan programs operated under part B of

title IV of the Higher Education Act of 1965 as a consequence of a

sequestration order. Amendment was executed to reflect the

probable intent of Congress based on language directing the general

amendment of subsec. (b), appearing in the conference report for

H.R. 2015, H. Rept. No. 105-217, 105th Congress, as adopted by the

House of Representatives and Senate.

Subsec. (e)(1). Pub. L. 105-33, Sec. 10208(d), substituted

''shall be 2 percent.'' for ''shall be - '' and struck out subpars.

(A) and (B) which read as follows:

''(A) 1 percent in the case of the fiscal year 1986, and

''(B) 2 percent in the case of any subsequent fiscal year.''

Subsec. (h)(2). Pub. L. 105-33, Sec. 10208(e)(1), substituted

''this subchapter'' for ''this joint resolution''.

Subsec. (h)(4)(D). Pub. L. 105-33, Sec. 10208(e)(2), redesignated

subpar. (E) as (D) and struck out former subpar. (D) which read as

follows: ''Office of Thrift Supervision.''

Subsec. (h)(4)(E) to (G). Pub. L. 105-33, Sec. 10208(e)(2),

redesignated subpars. (F), (G), and (I) as (E), (F), and (G),

respectively. Former subpar. (E) redesignated (D).

Subsec. (h)(4)(H). Pub. L. 105-33, Sec. 10208(e)(2), added

subpar. (H) and struck out former subpar. (H) which read as

follows: ''Resolution Funding Corporation.''

Subsec. (h)(4)(I). Pub. L. 105-33, Sec. 10208(e)(2), redesignated

subpar. (I) as (G).

Subsec. (j)(2) to (5). Pub. L. 105-33, Sec. 10208(f), added pars.

(2) to (5) and struck out former pars. (2) to (5) which related to

reduction in payments made under contracts, delayed reduction in

outlays permissible, uniform percentage rate of reduction and other

limitations, and no double reduction for agricultural price support

and income protection programs.

Subsec. (k)(1). Pub. L. 105-33, Sec. 10208(g)(1), struck out

''other than a trust or special fund account'' after ''from any

account'' and inserted '', except as provided in paragraph (5)''

before period.

Subsec. (k)(6). Pub. L. 105-33, Sec. 10208(g)(2), amended par.

(6) generally. Prior to amendment, par. (6) read as follows:

''Except as otherwise provided, sequestration in trust and special

fund accounts for which obligations are indefinite shall be taken

in a manner to ensure that obligations in the fiscal year of a

sequestration are reduced, from the level that would actually have

occurred, by the applicable sequestration percentage.''

1996 - Subsecs. (k), (l). Pub. L. 104-193 redesignated subsec.

(l) as (k) and struck out former subsec. (k) which related to

special rules for JOBS portion of AFDC, providing that any order

under section 904 accomplish full amount of any required

sequestration of job opportunities and basic skills training

program, and setting forth new allotment formula.

1990 - Subsec. (a). Pub. L. 101-508, Sec. 13101(d)(1), amended

subsec. (a) generally, substituting provisions relating to

automatic spending increases for provisions relating to effect of

reductions and sequestrations.

Subsec. (b). Pub. L. 101-508, Sec. 13101(d)(3), substituted

''section 904 of this title'' for ''section 902 of this title'' in

pars. (1) to (3).

Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec. (c) as

(b). Former subsec. (b) redesignated (h).

Subsec. (c). Pub. L. 101-508, Sec. 13101(d)(4), inserted after

first sentence ''No State's matching payments from the Federal

Government for foster care maintenance payments or for adoption

assistance maintenance payments may be reduced by a percentage

exceeding the applicable domestic sequestration percentage.''

Pub. L. 101-508, Sec. 13101(d)(3), substituted ''section 904 of

this title'' for ''section 902 of this title''.

Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec. (f) as

(c). Former subsec. (c) redesignated (b).

Subsec. (d)(1). Pub. L. 101-508, Sec. 13101(d)(5), amended par.

(1) generally. Prior to amendment, par. (1) read as follows: ''The

maximum permissible reduction for the health insurance programs

under title XVIII of the Social Security Act for any fiscal year,

pursuant to an order issued under section 902 of this title,

consists only of a reduction of -

''(A) 1 percent in the case of fiscal year 1986, and

''(B) 2 percent (or such higher percentage as may apply as

determined in accordance with section 902(a)(4)(B)(ii) of this

title) in the case of any subsequent fiscal year,

in each separate payment amount otherwise made for a covered

service under those programs without regard to this subchapter.''

Subsec. (d)(2)(C). Pub. L. 101-508, Sec. 13101(d)(6), struck out

subpar. (C) which read as follows: ''For purposes of this

paragraph, the effective period of a sequestration order for fiscal

year 1986 is the period beginning on March 1, 1986, and ending on

September 30, 1986.''

Subsec. (e). Pub. L. 101-508, Sec. 13101(d)(2), redesignated

subsec. (k) as (e). Former subsec. (e) redesignated (f).

Subsec. (e)(1). Pub. L. 101-508, Sec. 13101(d)(3), substituted

''section 904 of this title'' for ''section 902 of this title''.

Subsec. (f). Pub. L. 101-508, Sec. 13101(d)(3), substituted

''section 904 of this title'' for ''section 902 of this title''.

Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec. (e) as

(f). Former subsec. (f) redesignated (c).

Subsec. (g)(1). Pub. L. 101-509, Sec. 529 (title I, Sec.

101(b)(4)(H)), in closing provisions, inserted ''(as increased by

any amount payable under section 5304 of title 5 or section 302 of

the Federal Employees Pay Comparability Act of 1990)'' after ''pay

system'' and substituted ''5303'' for ''5305''.

Pub. L. 101-508, Sec. 13101(d)(3), substituted ''section 904 of

this title'' for ''section 902 of this title''.

Subsec. (g)(2)(A). Pub. L. 101-509, Sec. 529 (title I, Sec.

101(b)(2)(A)), substituted ''5302(1)'' for ''5301(c)''.

Subsec. (h). Pub. L. 101-508, Sec. 13101(d)(2), redesignated

subsec. (b) as (h). Former subsec. (h) redesignated (i).

Subsec. (h)(1). Pub. L. 101-508, Sec. 13101(d)(3), substituted

''section 904 of this title'' for ''section 902 of this title''.

Subsec. (i). Pub. L. 101-508, Sec. 13101(d)(2), redesignated

subsec. (h) as (i) and struck out former subsec. (i) which related

to treatment of mine worker disability compensation increases as

automatic spending increases.

Subsec. (i)(1), (2)(A). Pub. L. 101-508, Sec. 13101(d)(3),

substituted ''section 904 of this title'' for ''section 902 of this

title''.

Subsec. (j). Pub. L. 101-508, Sec. 13101(d)(3), substituted

''section 904 of this title'' for ''section 902 of this title''

wherever appearing in pars. (2) to (5).

Subsec. (k). Pub. L. 101-508, Sec. 13101(d)(2), added subsec.

(k). Former subsec. (k) redesignated (e).

Subsec. (l). Pub. L. 101-508, Sec. 13101(d)(2), added subsec. (l)

and struck out former subsec. (l) which related to treatment of

obligated balances.

1989 - Subsec. (b)(4)(C). Pub. L. 101-73, Sec. 743(b)(1),

substituted ''Office of Thrift Supervision'' for ''Federal Home

Loan Bank Board''.

Subsec. (b)(4)(D). Pub. L. 101-73, Sec. 743(b)(2), substituted

''Office of Thrift Supervision'' for ''Federal Savings and Loan

Insurance Corporation''.

Subsec. (b)(4)(H), (I). Pub. L. 101-73, Sec. 743(b)(3), added

subpars. (H) and (I).

1987 - Subsec. (a)(2). Pub. L. 100-119, Sec. 102(b)(2), amended

par. (2) generally. Prior to amendment, par. (2) read as follows:

''Any amount of new budget authority, unobligated balances,

obligated balances, new loan guarantee commitments, new direct loan

obligations, spending authority (as defined in section 651(c)(2) of

this title), or obligation limitations which is sequestered or

reduced pursuant to an order issued under section 902 of this title

is permanently cancelled, with the exception of amounts sequestered

in special or trust funds, which shall remain in such funds and be

available in accordance with and to the extent permitted by law,

including the provisions of this Act.''

Subsec. (b)(4). Pub. L. 100-86 added par. (4).

Subsec. (b)(4)(G). Pub. L. 100-119, Sec. 104(a)(3), added subpar.

(G).

Subsec. (d)(1)(B). Pub. L. 100-119, Sec. 102(b)(11), inserted

''(or such higher percentage as may apply as determined in

accordance with section 902(a)(4)(B)(ii) of this title)''.

Subsec. (e). Pub. L. 100-119, Sec. 104(a)(4), substituted

''Notwithstanding any change in the display of budget accounts, any

order'' for ''Any order''.

Subsec. (l). Pub. L. 100-119, Sec. 102(b)(3), amended subsec. (l)

generally, striking out provisions which had created an ''existing

contract'' exception to the rule of obligated balances not being

subject to reduction under an order issued under section 902 of

this title, under which existing contracts in major functional

category 050 (other than (A) those contracts which included a

specified penalty for cancellation or modification by the

Government and which if so cancelled or modified would have

resulted (due to such penalty) in a net loss to the Government for

the fiscal year, and (B) those contracts the reduction of which

would have violated the legal obligations of the Government) were

subject to reduction, in accordance with section 901(d)(3) of this

title, under an order issued under section 902 of this title.

1986 - Subsec. (h)(2)(B). Pub. L. 99-514 substituted ''Internal

Revenue Code of 1986'' for ''Internal Revenue Code of 1954'', which

for purposes of codification was translated as ''title 26'' thus

requiring no change in text.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-193 effective July 1, 1997, with

transition rules relating to State options to accelerate such date,

rules relating to claims, actions, and proceedings commenced before

such date, rules relating to closing out of accounts for terminated

or substantially modified programs and continuance in office of

Assistant Secretary for Family Support, and provisions relating to

termination of entitlement under AFDC program, see section 116 of

Pub. L. 104-193, set out as a note under section 601 of Title 42,

The Public Health and Welfare.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-509 effective on such date as the

President shall determine, but not earlier than 90 days, and not

later than 180 days, after Nov. 5, 1990, see section 529 (title

III, Sec. 305) of Pub. L. 101-509, set out as a note under section

5301 of Title 5, Government Organization and Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 901, 902, 903, 922 of

this title; title 12 section 1772c.

-CITE-

2 USC Sec. 907 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 907. The baseline

-STATUTE-

(a) In general

For any budget year, the baseline refers to a projection of

current-year levels of new budget authority, outlays, revenues, and

the surplus or deficit into the budget year and the outyears based

on laws enacted through the applicable date.

(b) Direct spending and receipts

For the budget year and each outyear, the baseline shall be

calculated using the following assumptions:

(1) In general

Laws providing or creating direct spending and receipts are

assumed to operate in the manner specified in those laws for each

such year and funding for entitlement authority is assumed to be

adequate to make all payments required by those laws.

(2) Exceptions

(A)(i) No program established by a law enacted on or before

August 5, 1997, with estimated current year outlays greater than

$50,000,000 shall be assumed to expire in the budget year or the

outyears. The scoring of new programs with estimated outlays

greater than $50,000,000 a year shall be based on scoring by the

Committees on Budget or OMB, as applicable. OMB, CBO, and the

Budget Committees shall consult on the scoring of such programs

where there are differenes (FOOTNOTE 1) between CBO and OMB.

(FOOTNOTE 1) So in original. Probably should be

''differences''.

(ii) On the expiration of the suspension of a provision of law

that is suspended under section 7301 of title 7 and that

authorizes a program with estimated fiscal year outlays that are

greater than $50,000,000, for purposes of clause (i), the program

shall be assumed to continue to operate in the same manner as the

program operated immediately before the expiration of the

suspension.

(B) The increase for veterans' compensation for a fiscal year

is assumed to be the same as that required by law for veterans'

pensions unless otherwise provided by law enacted in that

session.

(C) Excise taxes dedicated to a trust fund, if expiring, are

assumed to be extended at current rates.

(D) If any law expires before the budget year or any outyear,

then any program with estimated current year outlays greater than

$50,000,000 that operates under that law shall be assumed to

continue to operate under that law as in effect immediately

before its expiration.

(3) Hospital Insurance Trust Fund

Notwithstanding any other provision of law, the receipts and

disbursements of the Hospital Insurance Trust Fund shall be

included in all calculations required by this Act.

(c) Discretionary appropriations

For the budget year and each outyear, the baseline shall be

calculated using the following assumptions regarding all amounts

other than those covered by subsection (b) of this section:

(1) Inflation of current-year appropriations

Budgetary resources other than unobligated balances shall be at

the level provided for the budget year in full-year appropriation

Acts. If for any account a full-year appropriation has not yet

been enacted, budgetary resources other than unobligated balances

shall be at the level available in the current year, adjusted

sequentially and cumulatively for expiring housing contracts as

specified in paragraph (2), for social insurance administrative

expenses as specified in paragraph (3), to offset pay absorption

and for pay annualization as specified in paragraph (4), for

inflation as specified in paragraph (5), and to account for

changes required by law in the level of agency payments for

personnel benefits other than pay.

(2) Expiring housing contracts

New budget authority to renew expiring multiyear subsidized

housing contracts shall be adjusted to reflect the difference in

the number of such contracts that are scheduled to expire in that

fiscal year and the number expiring in the current year, with the

per-contract renewal cost equal to the average current-year cost

of renewal contracts.

(3) Social insurance administrative expenses

Budgetary resources for the administrative expenses of the

following trust funds shall be adjusted by the percentage change

in the beneficiary population from the current year to that

fiscal year: the Federal Hospital Insurance Trust Fund, the

Supplementary Medical Insurance Trust Fund, the Unemployment

Trust Fund, and the railroad retirement account.

(4) Pay annualization; offset to pay absorption

Current-year new budget authority for Federal employees shall

be adjusted to reflect the full 12-month costs (without

absorption) of any pay adjustment that occurred in that fiscal

year.

(5) Inflators

The inflator used in paragraph (1) to adjust budgetary

resources relating to personnel shall be the percent by which the

average of the Bureau of Labor Statistics Employment Cost Index

(wages and salaries, private industry workers) for that fiscal

year differs from such index for the current year. The inflator

used in paragraph (1) to adjust all other budgetary resources

shall be the percent by which the average of the estimated gross

domestic product chain-type price index for that fiscal year

differs from the average of such estimated index for the current

year.

(6) Current-year appropriations

If, for any account, a continuing appropriation is in effect

for less than the entire current year, then the current-year

amount shall be assumed to equal the amount that would be

available if that continuing appropriation covered the entire

fiscal year. If law permits the transfer of budget authority

among budget accounts in the current year, the current-year level

for an account shall reflect transfers accomplished by the

submission of, or assumed for the current year in, the

President's original budget for the budget year.

(d) Up-to-date concepts

In deriving the baseline for any budget year or outyear,

current-year amounts shall be calculated using the concepts and

definitions that are required for that budget year.

(e) Asset sales

Amounts realized from the sale of an asset shall not be included

in estimates under section 901, 902, or 903 of this title if that

sale would result in a financial cost to the Federal Government as

determined pursuant to scorekeeping guidelines.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 257, formerly Sec. 251(a)(6)(I),

257, Dec. 12, 1985, 99 Stat. 1092; Pub. L. 100-119, title I, Sec.

102(a), (b)(4)-(8), 104(c)(2), 106(b), Sept. 29, 1987, 101 Stat.

754, 773, 774, 777, 780; renumbered Sec. 257 and amended Pub. L.

101-508, title XIII, Sec. 13101(b), (e)(1), (2), Nov. 5, 1990, 104

Stat. 1388-589, 1388-591, 1388-593; Pub. L. 105-33, title X, Sec.

10209(a), Aug. 5, 1997, 111 Stat. 710.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsec. (b)(3), means Pub. L. 99-177,

Dec. 12, 1985, 99 Stat. 1037, as amended, which enacted this

chapter and sections 654 to 656 of this title, amended sections

602, 622, 631 to 642, and 651 to 653 of this title, sections 1104

to 1106, 1109, and 3101 of Title 31, Money and Finance, and section

911 of Title 42, The Public Health and Welfare, repealed section

661 of this title, enacted provisions set out as notes under

section 900 of this title and section 911 of Title 42, and amended

provisions set out as a note under section 621 of this title. For

complete classification of this Act to the Code, see Tables.

-COD-

CODIFICATION

Pub. L. 101-508, Sec. 13101(b), redesignated former par. (12) of

this section as section 250(c)(21) (now 250(c)(19)) of Pub. L.

99-177, which is classified to section 900(c)(19) of this title.

Pub. L. 101-508, Sec. 13101(e)(2), transferred section

251(a)(6)(I) of Pub. L. 99-177, which was classified to section

901(a)(6)(I) of this title, to subsec. (e) of this section.

-MISC3-

AMENDMENTS

1997 - Subsec. (b)(2)(A). Pub. L. 105-33, Sec. 10209(a)(1),

amended subpar. (A) generally. Prior to amendment, subpar. (A)

read as follows: ''No program with estimated current-year outlays

greater than $50 million shall be assumed to expire in the budget

year or outyears.''

Subsec. (b)(2)(D). Pub. L. 105-33, Sec. 10209(a)(2), added

subpar. (D).

Subsec. (c)(5). Pub. L. 105-33, Sec. 10209(a)(3), substituted

''domestic product chain-type price index'' for ''national product

fixed-weight price index''.

Subsec. (e). Pub. L. 105-33, Sec. 10209(a)(4), added subsec. (e)

and struck out former subsec. (e) which read as follows: ''The sale

of an asset or prepayment of a loan shall not alter the deficit or

produce any net deficit reduction in the budget baseline, except

that the budget baseline estimate shall include asset sales

mandated by law before September 18, 1987, and routine, ongoing

asset sales and loan prepayments at levels consistent with agency

operations in fiscal year 1986;''.

1990 - Pub. L. 101-508, Sec. 13101(e)(1), amended section

generally, substituting provisions relating to baseline for

provisions relating to definitions.

Subsec. (e). Pub. L. 101-508, Sec. 13101(e)(2), redesignated

section 901(a)(6)(I) of this title as subsec. (e) of this section,

and substituted ''The'' for ''assuming, for purposes of this

paragraph and subparagraph (A)(i) of paragraph (3), that the''.

1987 - Pub. L. 100-119, Sec. 102(a), amended section 901 of this

title generally, adding subsec. (a)(6)(I). See 1990 Amendment note

above.

Par. (1). Pub. L. 100-119, Sec. 104(c)(2), struck out provisions

of former subpar. (A) that ''automatic spending increase'' meant

increases in budget outlays due to changes in indexes in the

following Federal programs:

''Black lung benefits (20-8144-0-7-601);

''Central Intelligence Agency retirement and disability system

fund (56-3400-0-1-054);

''Civil service retirement and disability fund

(24-8135-0-7-602);

''Comptrollers general retirement system (05-0107-0-1-801);

''Foreign service retirement and disability fund

(19-8186-0-7-602);

''Judicial survivors' annuities fund (10-8110-0-7-602);

''Longshoremen's and harborworkers' compensation benefits

(16-9971-0-7-601);

''Military retirement fund (97-8097-0-7-602);

''National Oceanic and Atmospheric Administration retirement

(13-1450-0-1-306);

''Pensions for former Presidents (47-0105-0-1-802);

''Railroad retirement tier II (60-8011-0-7-601);

''Retired pay, Coast Guard (69-0241-0-1-403);

''Retirement pay and medical benefits for commissioned

officers, Public Health Service (75-0379-0-1-551);

''Special benefits, Federal Employees' Compensation Act

(16-1521-0-1-600);

''Special benefits for disabled coal miners (75-0409-0-1-601);

and

''Tax Court judges survivors annuity fund (23-8115-0-7-602).''

Par. (7). Pub. L. 100-119, Sec. 102(b)(4), amended par. (7)

generally. Prior to amendment, par. (7) read as follows: ''The

terms 'sequester' and 'sequestration' (subject to section 902(a)(4)

of this title) refer to or mean the cancellation of new budget

authority, unobligated balances, obligated balances, new loan

guarantee commitments, new direct loan obligations, and spending

authority as defined in section 651(c)(2) of this title, and the

reduction of obligation limitations.''

Par. (9). Pub. L. 100-119, Sec. 102(b)(5), added par. (9).

Par. (10). Pub. L. 100-119, Sec. 106(b), added par. (10).

Par. (11). Pub. L. 100-119, Sec. 102(b)(6), added par. (11).

Par. (12). Pub. L. 100-119, Sec. 102(b)(7), added par. (12).

Pars. (13), (14). Pub. L. 100-119, Sec. 102(b)(8), added pars.

(13) and (14).

DEFINITION OF TERMS USED IN BALANCED BUDGET AND EMERGENCY DEFICIT

CONTROL ACT OF 1985

Pub. L. 101-163, title III, Sec. 315, Nov. 21, 1989, 103 Stat.

1066, provided that: ''Effective in the case of this Act and any

subsequent Act making appropriations for the Legislative Branch,

for purposes of the Balanced Budget and Emergency Deficit Control

Act of 1985 (Public Law 99-177), as amended (see Short Title note

set out under section 900 of this title), or any other Act which

requires a uniform percentage reduction in accounts in this Act and

any subsequent Act making appropriations for the Legislative

Branch, the accounts under the general heading 'Senate', and the

accounts under the general heading 'House of Representatives',

shall each be considered to be one appropriation account and one

'program, project, and activity'.''

Pub. L. 100-202, Sec. 101(i) (title III, Sec. 306), Dec. 22,

1987, 101 Stat. 1329-290, 1329-309, provided that: ''Hereafter, for

purposes of the Balanced Budget and Emergency Deficit Control Act

of 1985 (Public Law 99-177), as amended (see Short Title note set

out under section 900 of this title), the term 'program, project,

and activity' shall be synonymous with each appropriation account

in this Act (see Tables for classification), except that the

accounts under the general heading 'House of Representatives' shall

be considered one appropriation account and one 'program, project,

and activity', and the accounts under the general heading 'Senate'

shall be considered one appropriation account and one 'program,

project, and activity'.''

COST-OF-LIVING ADJUSTMENTS IN CERTAIN FEDERAL BENEFITS

Pub. L. 99-509, title VII, Sec. 7001, Oct. 21, 1986, 100 Stat.

1948, provided that:

''(a) In General. - Benefits which are payable in calendar year

1987, 1988, 1989, 1990, or 1991, under programs listed in section

257(1)(A) of the Balanced Budget and Emergency Deficit Control Act

of 1985 (Public Law 99-177), (2 U.S.C. 907(1)(A)), including any

cost-of-living adjustment in such benefits, shall not be subject to

modification, suspension, or reduction in such calendar year

pursuant to a Presidential order issued under such Act (see Short

Title note set out under 2 U.S.C. 900).

''(b) Definition. - For purposes of this section, the term

'cost-of-living adjustment' means any increase or change in the

amount of a benefit or in standards relating to such benefit under

any provision of Federal law which requires such increase or change

as a result of any change in the Consumer Price Index (or any

component thereof) or any other index which measures costs, prices,

or wages.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 602, 691e, 900 of this

title; title 7 section 7251; title 15 sections 77f, 78ee; title 31

section 1105; title 38 section 1729A; title 42 section 603.

-CITE-

2 USC Sec. 907a 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 907a. Suspension in event of war or low growth

-STATUTE-

(a) Procedures in event of low-growth report

(1) Trigger

Whenever CBO issues a low-growth report under section 254(j),

(FOOTNOTE 1) 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)

(FOOTNOTE 1) are met and suspending the relevant provisions of

this title, (FOOTNOTE 1) titles III and VI (FOOTNOTE 1) of the

Congressional Budget Act of 1974 (2 U.S.C. 631 et seq.), and

section 1103 of title 31.

(FOOTNOTE 1) See References in Text note below.

(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) (FOOTNOTE 1) 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 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 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) of this section -

(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 (FOOTNOTE 1)

of the Congressional Budget Act of 1974 (2 U.S.C. 633(f), 641(d),

642(a)) are suspended; and

(3) section 1103 of title 31 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) of this section triggered by that declaration of war

are no longer effective.

(2) In the event of a suspension of sequestration procedures due

to the enactment of a joint resolution described in subsection (a)

of this section, 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) of this section

triggered by that resolution are no longer effective.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 258, as added Pub. L. 101-508,

title XIII, Sec. 13101(f), Nov. 5, 1990, 104 Stat. 1388-593.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-REFTEXT-

REFERENCES IN TEXT

Section 254 and section 254 of the Balanced Budget and Emergency

Deficit Control Act of 1985, referred to in subsec. (a)(1), (2)(A),

mean section 254 of Pub. L. 99-177, which is classified to section

904 of this title, and was amended by Pub. L. 105-33, title X, Sec.

10206(1), Aug. 5, 1997, 111 Stat. 704, by redesignating subsecs.

(j) and (k) as (i) and (j), respectively.

This title, referred to in subsec. (a)(1), means title II (Sec.

200 et seq.) of Pub. L. 99-177, Dec. 12, 1985, 99 Stat. 1038, as

amended, known as the Balanced Budget and Emergency Deficit Control

Act of 1985. For complete classification of this Act to the Code,

see Short Title note set out under section 900 of this title and

Tables.

The Congressional Budget Act of 1974, referred to in subsecs.

(a)(1) and (b)(2), is titles I to IX of Pub. L. 93-344, July 12,

1974, 88 Stat. 297, as amended. Title III of the Act is classified

generally to subchapter I (Sec. 631 et seq.) of chapter 17A of this

title. Title VI of the Act was classified generally to subchapter

IV (Sec. 665 et seq.) of chapter 17A of this title prior to repeal

by Pub. L. 105-33, title X, Sec. 10118(a), Aug. 5, 1997, 111 Stat.

695. For complete classification of this Act to the Code, see Short

Title note set out under section 621 of this title and Tables.

The Congressional Budget and Impoundment Control Act of 1974,

referred to in subsec. (a)(2)(A), is Pub. L. 93-344, July 12, 1974,

88 Stat. 297, as amended. For complete classification of this Act

to the Code, see Short Title note set out under section 621 of this

title and Tables.

Part C of the Balanced Budget and Emergency Deficit Control Act

of 1985, referred to in subsec. (a)(2)(A), is classified generally

to this subchapter. Section 258 of the Act is classified to this

section.

-MISC2-

PRIOR PROVISIONS

A prior section 258 of Pub. L. 99-177 was classified to section

908 of this title prior to repeal by Pub. L. 105-33, title X, Sec.

10210, Aug. 5, 1997, 111 Stat. 711.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 643 of this title.

-CITE-

2 USC Sec. 907b 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 907b. Modification of Presidential order

-STATUTE-

(a) Introduction of joint resolution

At any time after the Director of OMB issues a final

sequestration report under section 904 of this title 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

904 of this title 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) of this section 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 Senate

On or after the third calendar day (excluding Saturdays,

Sundays, and legal holidays) beginning after a joint resolution

is introduced under subsection (a) of this section,

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 Senate

(A) In the Senate, debate on a joint resolution introduced

under subsection (a) of this section, 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 904 of

this title shall be in order in the Senate. 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 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) of this section, 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

(FOOTNOTE 1) of the Congressional Budget Act of 1974 (2 U.S.C.

631 et seq., 651 et seq.) are applicable to a conference report

on the joint resolution or any amendments in disagreement

thereto.

(FOOTNOTE 1) See References in Text note below.

(7) Resolution from other House

If, before the passage by the Senate of a joint resolution of

the Senate introduced under subsection (a) of this section, the

Senate receives from the House of Representatives a joint

resolution introduced under subsection (a) of this section, 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) of this section in the Senate -

(i) the procedure in the Senate shall be the same as if no

joint resolution had been received from the House; 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) of this section

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 text of the Senate

joint resolution.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 258A, as added Pub. L. 101-508,

title XIII, Sec. 13101(f), Nov. 5, 1990, 104 Stat. 1388-595.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-REFTEXT-

REFERENCES IN TEXT

The Congressional Budget Act of 1974, referred to in subsec.

(b)(6), is titles I to IX of Pub. L. 93-344, July 12, 1974, 88

Stat. 297, as amended. Titles III and IV of the Act are classified

generally to subchapters I (Sec. 631 et seq.) and II (Sec. 651 et

seq.), respectively, of chapter 17A of this title. Title VI of the

Act was classified generally to subchapter IV (Sec. 665 et seq.) of

chapter 17A of this title prior to repeal by Pub. L. 105-33, title

X, Sec. 10118(a), Aug. 5, 1997, 111 Stat. 695. For complete

classification of this Act to the Code, see Short Title note set

out under section 621 of this title and Tables.

-CITE-

2 USC Sec. 907c 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 907c. Flexibility among defense programs, projects, and

activities

-STATUTE-

(a) Reductions beyond amount specified in Presidential order

Subject to subsections (b), (c), and (d) of this section, 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 904 of this title 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 account outlay rates that are

identical to those used in the report by the Director of OMB under

section 904 of this title.

(b) Base closures prohibited

No actions taken by the President under subsection (a) of this

section for a fiscal year may result in a domestic base closure or

realignment that would otherwise be subject to section 2687 of

title 10.

(c) Report and joint resolution required

The President may not exercise the authority provided by this

paragraph (FOOTNOTE 1) for a fiscal year unless -

(FOOTNOTE 1) So in original. Probably should be ''section''.

(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 (FOOTNOTE 1)

becomes law.

(d) Introduction of joint resolution

Within 5 calendar days of session after the President submits a

report to Congress under subsection (c)(1) of this section 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. (FOOTNOTE 1)

(e) Form and title of joint resolution

(1) The matter after the resolving clause in any joint resolution

introduced pursuant to subsection (d) of this section 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.

(f) Calendaring and consideration of joint resolution in Senate

(1) A joint resolution introduced in the Senate under subsection

(d) of this section 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 904 of this title. For purposes of this paragraph, an

amendment shall be considered to be relevant if it relates to

function 050 (national defense).

(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) Debate of joint resolution; motions

(1) In the Senate, debate on a joint resolution introduced under

subsection (d) of this section, 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.

(h) Amendment of joint resolution

(1) No amendment that is not germane or relevant to the

provisions of the joint resolution or to the order issued under

section 904 of this title 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 designee)

shall control the time in opposition to the amendment, motion, or

appeal.

(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)

of this section 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) Vote on final passage of joint resolution

Immediately following the conclusion of the debate on a joint

resolution introduced under subsection (d) of this section, 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) of this section, the vote

on final passage of the joint resolution shall occur.

(j) Appeal from decision of Chair

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) of this section

shall be decided without debate.

(k) Conference reports

In the Senate, points of order under titles III and IV of the

Congressional Budget Act of 1974 (2 U.S.C. 631 et seq., 651 et

seq.) (including points of order under sections 302(c), 303(a),

306, and 401(b)(1) (2 U.S.C. 633(c), 634(a), 637, 651(b)(1))) are

applicable to a conference report on the joint resolution or any

amendments in disagreement thereto.

(l) Resolution from other House

If, before the passage by the Senate of a joint resolution of the

Senate introduced under subsection (d) of this section, the Senate

receives from the House of Representatives a joint resolution

introduced under subsection (d) of this section, then the following

procedures shall apply:

(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) of this section 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.

(m) Senate action on House resolution

If the Senate receives from the House of Representatives a joint

resolution introduced under subsection (d) of this section 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.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 258B, as added Pub. L. 101-508,

title XIII, Sec. 13101(g), Nov. 5, 1990, 104 Stat. 1388-597.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-REFTEXT-

REFERENCES IN TEXT

Section 258B, referred to in subsec. (e)(1), (2), means section

258B of Pub. L. 99-177, which is classified to this section.

The Congressional Budget Act of 1974, referred to in subsec. (k),

is titles I to IX of Pub. L. 93-344, July 12, 1974, 88 Stat. 297,

as amended. Titles III and IV of the Act are classified generally

to subchapters I (Sec. 631 et seq.) and II (Sec. 651 et seq.) of

chapter 17A of this title. For complete classification of this Act

to the Code, see Short Title note set out under section 621 of this

title and Tables.

-CITE-

2 USC Sec. 907d 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 907d. Special reconciliation process

-STATUTE-

(a) Reporting of resolutions and reconciliation bills and

resolutions, in Senate

(1) Committee alternatives to Presidential order

After the submission of an OMB sequestration update report

under section 904 of this title that envisions a sequestration

under section 902 or 903 of this title, 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 632(d) of this title with respect to

alternatives to the order envisioned by such report insofar as

such order affects laws within the jurisdiction of the committee.

(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

641(a) of this title, 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.

(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 904 of this title

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) ''Day'' defined

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 636 and 641 of this title 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) of this section, and all amendments thereto and

debatable motions and appeals in connection therewith, shall be

limited to 10 hours.

(3) Limitation on amendments

Section 641(d)(2) of this title shall apply to reconciliation

bills and reconciliation resolutions reported under this

subsection.

(4) Bills and resolutions received from the House

Any bill or resolution received in the Senate from 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.

(5) ''Resolution'' defined

For purposes of this subsection, the term ''resolution'' means

a simple, joint, or concurrent resolution.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 258C, as added Pub. L. 101-508,

title XIII, Sec. 13101(g), Nov. 5, 1990, 104 Stat. 1388-600.)

-STATAMEND-

TERMINATION OF SECTION

For termination of section by section 275(b) of Pub. L. 99-177,

as amended, see Effective and Termination Dates note set out

under section 900 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 641, 644 of this title.

-CITE-

2 USC Sec. 908 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 908. Repealed. Pub. L. 105-33, title X, Sec. 10210, Aug. 5,

1997, 111 Stat. 711

-MISC1-

Section, Pub. L. 99-177, title II, Sec. 258, as added Pub. L.

100-119, title I, Sec. 105(a), Sept. 29, 1987, 101 Stat. 778,

related to modification of Presidential order.

-CITE-

2 USC Sec. 909 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER I - ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT

AMOUNT

-HEAD-

Sec. 909. Repealed. Pub. L. 101-508, title XIII, Sec. 13212, Nov.

5, 1990, 104 Stat. 1388-621

-MISC1-

Section, Pub. L. 100-119, title II, Sec. 202, Sept. 29, 1987, 101

Stat. 784, prohibited counting as savings transfer of Government

actions from one year to another.

-CITE-

2 USC SUBCHAPTER II - OPERATION AND REVIEW 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER II - OPERATION AND REVIEW

.

-HEAD-

SUBCHAPTER II - OPERATION AND REVIEW

-CITE-

2 USC Sec. 921 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER II - OPERATION AND REVIEW

-HEAD-

Sec. 921. Transferred

-COD-

CODIFICATION

Section, Pub. L. 99-177, title II, Sec. 273, Dec. 12, 1985, 99

Stat. 1098, which related to revenue estimates, was redesignated as

section 201(g) of Pub. L. 93-344 by section 13202(b) of Pub. L.

101-508 and is classified to section 601(f) of this title.

-CITE-

2 USC Sec. 922 01/06/03

-EXPCITE-

TITLE 2 - THE CONGRESS

CHAPTER 20 - EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

SUBCHAPTER II - OPERATION AND REVIEW

-HEAD-

Sec. 922. Judicial review

-STATUTE-

(a) Expedited review

(1) Any Member of Congress may bring an action, in the United

States District Court for the District of Columbia, for

declaratory judgment and injunctive relief on the ground that any

order that might be issued pursuant to section 904 of this title

violates the Constitution.

(2) Any Member of Congress, or any other person adversely

affected by any action taken under this title, (FOOTNOTE 1) may

bring an action, in the United States District Court for the

District of Columbia, for declaratory judgment and injunctive

relief concerning the constitutionality of this title. (FOOTNOTE

1)

(FOOTNOTE 1) See References in Text note below.

(3) Any Member of Congress may bring an action, in the United

States District Court for the District of Columbia, for

declaratory and injunctive relief on the ground that the terms of

an order issued under section 904 of this title do not comply

with the requirements of this title. (FOOTNOTE 1)

(4) A copy of any complaint in an action brought under

paragraph (1), (2), or (3) shall be promptly delivered to the

Secretary of the Senate and the Clerk of the House of

Representatives, and each House of Congress shall have the right

to intervene in such action.

(5) Any action brought under paragraph (1), (2), or (3) shall

be heard and determined by a three-judge court in accordance with

section 2284 of title 28.

Nothing in this section or in any other law shall infringe upon the

right of the House of Representatives to intervene in an action

brought under paragraph (1), (2), or (3) without the necessity of

adopting a resolution to authorize such intervention.

(b) Appeal to Supreme Court

Notwithstanding any other provision of law, any order of the

United States District Court for the District of Columbia which is

issued pursuant to an action brought under paragraph (1), (2), or

(3) of subsection (a) of this section shall be reviewable by appeal

directly to the Supreme Court of the United States. Any such appeal

shall be taken by a notice of appeal filed within 10 days after

such order is entered; and the jurisdictional statement shall be

filed within 30 days after such order is entered. No stay of an

order issued pursuant to an action brought under paragraph (1),

(2), or (3) of subsection (a) of this section shall be issued by a

single Justice of the Supreme Court.

(c) Expedited consideration

It shall be the duty of the District Court for the District of

Columbia and the Supreme Court of the United States to advance on

the docket and to expedite to the greatest possible extent the

disposition of any matter brought under subsection (a) of this

section.

(d) Noncompliance with sequestration procedures

(1) If it is finally determined by a court of competent

jurisdiction that an order issued by the President under section

904 of this title for any fiscal year -

(A) does not reduce automatic spending increases under any

program specified in section 906(a) of this title if such

increases are required to be reduced by subchapter I of this

chapter (or reduces such increases by a greater extent than is so

required), or

(B) does not sequester the amount of budgetary resources which

is required to be sequestered by subchapter I of this chapter (or

sequesters more than that amount) with respect to any program,

project, activity, or account,

the President shall, within 20 days after such determination is

made, revise the order in accordance with such determination.

(2) If the order issued by the President under section 904 of

this title for any fiscal year -

(A) does not reduce any automatic spending increase to the

extent that such increase is required to be reduced by subchapter

I of this chapter,

(B) does not sequester any amount of new budget authority, new

loan guarantee commitments, new direct loan obligations, or

spending authority which is required to be sequestered by

subchapter I of this chapter, or

(C) does not reduce any obligation limitation by the amount by

which such limitation is required to be reduced under subchapter

I of this chapter,

on the claim or defense that the constitutional powers of the

President prevent such sequestration or reduction or permit the

avoidance of such sequestration or reduction, and such claim or

defense is finally determined by the Supreme Court of the United

States to be valid, then the entire order issued pursuant to

section 904 of this title for such fiscal year shall be null and

void.

(e) Timing of relief

No order of any court granting declaratory or injunctive relief

from the order of the President issued under section 904 of this

title, including but not limited to relief permitting or requiring

the expenditure of funds sequestered by such order, shall take

effect during the pendency of the action before such court, during

the time appeal may be taken, or, if appeal is taken, during the

period before the court to which such appeal is taken has entered

its final order disposing of such action.

(f) Preservation of other rights

The rights created by this section are in addition to the rights

of any person under law, subject to subsection (e) of this section.

(g) Economic data and assumptions

The economic data and economic assumptions used by the Director

of OMB in computing the figures specified in any report issued by

the Director of OMB under section 904 of this title, shall not be

subject to review in any judicial or administrative proceeding.

-SOURCE-

(Pub. L. 99-177, title II, Sec. 274, Dec. 12, 1985, 99 Stat. 1098;

Pub. L. 100-119, title I, Sec. 102(b)(9), (10), Sept. 29, 1987, 101

Stat. 774, 775; Pub. L. 105-33, title X, Sec. 10211, Aug. 5, 1997,

111 Stat. 711.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsec. (a)(2), (3), means title II

(Sec. 200 et seq.) of Pub. L. 99-177, Dec. 12, 1985, 99 Stat. 1038,

known as the Balanced Budget and Emergency Deficit Control Act of

1985. For complete classification of this Act to the code, see

Short Title note set out under section 901 of this title and

Tables.

-MISC2-

AMENDMENTS

1997 - Subsec. (a)(1), (3). Pub. L. 105-33, Sec. 10211(1),

substituted ''section 904'' for ''section 902''.

Subsec. (d)(1). Pub. L. 105-33, Sec. 10211(1), substituted

''section 904'' for ''section 902(b)'' in introductory provisions.

Subsec. (d)(1)(A). Pub. L. 105-33, Sec. 10211(2), substituted

''906(a) of this title if'' for ''907(1) of this title to the

extent that'' and inserted ''or'' at end.

Subsec. (d)(1)(B). Pub. L. 105-33, Sec. 10211(3), substituted

''budgetary resources'' for ''new budget authority, new loan

guarantee commitments, new direct loan obligations, or spending

authority''. Directory language directing the striking of ''or''

after the comma was executed by striking ''or'' after ''account,''

and not after ''activity,'' to reflect the probable intent of

Congress.

Subsec. (d)(1)(C). Pub. L. 105-33, Sec. 10211(4), struck out

subpar. (C) which read as follows: ''does not reduce obligation

limitations by the amount by which such limitations are required to

be reduced under subchapter I of this chapter (or reduces such

limitations by more than that amount) with respect to any program,

project, activity, or account,''.

Subsec. (d)(2). Pub. L. 105-33, Sec. 10211(1), substituted

''section 904'' for ''section 902(b)'' in introductory and

concluding provisions.

Subsec. (e). Pub. L. 105-33, Sec. 10211(1), substituted ''section

904'' for ''section 902''.

Subsec. (f). Pub. L. 105-33, Sec. 10211(5), redesignated subsec.

(g) as (f) and struck out heading and text of former subsec. (f)

consisting of pars. (1) to (5) relating to alternative procedures

for joint reports of directors.

Subsec. (g). Pub. L. 105-33, Sec. 10211(6), substituted

''figures'' for ''base levels of total revenues and total budget

outlays, as'' and ''section 904 of this title'' for ''section

901(a)(2)(B) or (c)(2) of this title,''.

Pub. L. 105-33, Sec. 10211(5), redesignated subsec. (h) as (g).

Former subsec. (g) redesignated (f).

Subsec. (h). Pub. L. 105-33, Sec. 10211(5), redesignated subsec.

(h) as (g).

1987 - Subsec. (f)(1). Pub. L. 100-119, Sec. 102(b)(9)(A), added

par. (1) and struck out former par. (1) which read as follows: ''In

the event that any of the reporting procedures described in section

901 of this title are invalidated, then any report of the Directors

referred to in section 901(a) or (c)(1) of this title shall be

transmitted to the joint committee established under this

subsection.''

Subsec. (f)(2), (3). Pub. L. 100-119, Sec. 102(b)(9)(B),

substituted ''Director of CBO'' for ''Directors'' wherever

appearing.

Subsec. (f)(5). Pub. L. 100-119, Sec. 102(b)(9)(C), substituted

''section 901(a)(2)(B) or (c)(2)'' for ''section 901(b) or

(c)(2)''.

Subsec. (h). Pub. L. 100-119, Sec. 102(b)(10), substituted ''and

economic assumptions'' for '', assumptions, and methodologies'',

''Director of OMB'' for ''Comptroller General'' in two places, and

''section 901(a)(2)(B)'' for ''section 901(b)''.

-CITE-