§902. Enforcing pay-as-you-go

(a) Fiscal years 1992–1998 enforcement

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.

(b) Sequestration; look-back

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 903 of this title, there shall be a sequestration to offset the amount of any net deficit increase in that fiscal year and the prior fiscal year caused by all direct spending and receipts legislation enacted after November 5, 1990 (after adjusting for any prior sequestration as provided by paragraph (2)). OMB shall calculate the amount of deficit increase, if any, in those fiscal years by adding-

(1) all applicable estimates of direct spending and receipts legislation transmitted under subsection (d) of this section applicable to those fiscal years, other than any amounts included in such estimates resulting from-

(A) full funding of, and continuation of, the deposit insurance guarantee commitment in effect on November 5, 1990, and

(B) emergency provisions as designated under subsection (e) of this section; and

(2) the estimated amount of savings in direct spending programs applicable to those fiscal years resulting from the prior year's sequestration under this section or section 903 of this title, if any (except for any amounts sequestered as a result of a net deficit increase in the fiscal year immediately preceding the prior fiscal year), as published in OMB's end-of-session sequestration report for that prior 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 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) OMB estimates

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.

(e) Emergency legislation

If, for any fiscal year from 1991 through 1998, 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 through 1995 ¹ 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.

( Pub. L. 99–177, title II, §252, Dec. 12, 1985, 99 Stat. 1072 ; Pub. L. 100–119, title I, §102(a), Sept. 29, 1987, 101 Stat. 764 ; Pub. L. 100–203, title VIII, §8003(e), Dec. 22, 1987, 101 Stat. 1330–282 ; Pub. L. 101–508, title XIII, §13101(a), Nov. 5, 1990, 104 Stat. 1388–581 ; Pub. L. 103–66, title XIV, §14003(a), Aug. 10, 1993, 107 Stat. 684 ; Pub. L. 103–354, title I, §119(d)(2), Oct. 13, 1994, 108 Stat. 3208 .)

Termination of Section

For termination of section by section 14002(c)(3)(A) of Pub. L. 103–66, see Effective and Termination Dates note set out under section 900 of this title.

References in Text

This Act, referred to in subsec. (a), 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.

Codification

November 5, 1990, referred to in subsecs. (a), (b), and (d), 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.

Amendments

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, §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, §14003(a)(2), substituted "through fiscal year 1998" for "through fiscal year 1995" in two places.

Subsec. (e). Pub. L. 103–66, §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, §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 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."

Section Referred to in Other Sections

This section is referred to in sections 665, 665e, 900, 901, 903, 904, 906, 907d, 908, 922 of this title; title 7 section 1446; title 16 sections 3834, 3837d, 3839c; title 31 section 1341; title 39 section 2009a.

¹ So in original. Probably should be "1998".