 
        CHAPTER 20--EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS
 
   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

    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 \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.
---------------------------------------------------------------------------
    \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) \2\ or 
    portions thereof.
---------------------------------------------------------------------------
    \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),\2\ with the exception of Urban and 
    Community Forestry as described in (E)(ix),\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),\2\ with the exception of Forest 
    Legacy and Smart Growth Partnerships as described in (E)(ix),\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)\2\ or portions thereof.
        (J) The term ``Federal Deferred Maintenance sub-category'' means 
    discretionary appropriations for activities in the account described 
    in (E)(xiv)\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)\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 \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.
---------------------------------------------------------------------------
    \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.

(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, 
Secs. 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.)

                         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.

                       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.

                          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.


                               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, Secs. 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, Secs. 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'.''


           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 (Secs. 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.

                   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.

                    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 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.
