§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.
(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
(D)
(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.
(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.
(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.
(
Termination of Section
For termination of section by section 275(b) of
References in Text
House Concurrent Resolution 84, referred to in subsec. (b), is H. Con. Res. 84, June 5, 1997,
The Balanced Budget Act of 1997, referred to in subsec. (c)(4)(A), (17), is
The Transportation Equity Act for the 21st Century, referred to in subsec. (c)(4)(B), (C), (D)(ii), is
Section 14 of
The Department of the Interior and Related Agencies Appropriations Act, 2001, referred to in subsec. (c)(4)(E)(xiv), is
The Congressional Budget Act of 1974, referred to in subsec. (c)(19), is titles I through IX of
Codification
Subsection (a) of this section, which provided a partial table of contents for this subchapter was omitted from the Code.
Amendments
2000-Subsec. (c)(4)(E) to (K).
1998-Subsec. (c)(4).
Subsec. (c)(4)(C).
1997-Subsec. (a).
Subsec. (b).
"(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).
Subsec. (c)(4).
"(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).
"(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).
Subsec. (c)(14).
Subsec. (c)(17).
Subsec. (c)(18).
Subsec. (c)(19).
Subsec. (c)(20).
"(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).
1990-Subsec. (c)(21).
Effective Date of 1998 Amendment
Title IX of
Effective and Termination Dates
Section 275 of title II of
"(a)
"(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)
"(c)
[Amendment of section 275(b)(2) of
Short Title of 1997 Amendment
Section 10001(a) of title X of
Short Title of 1990 Amendment
Section 13001(a) of title XIII of
Short Title of 1987 Amendment
Section 101(b) of title I of
Short Title
Section 200(a) of title II of
Purpose of Subtitle B of Title X of Pub. L. 105–33
Section 10201 of title X of
Restriction on Elimination or Reduction of Programs Relating to Energy and Water Development
Waivers and Suspensions in the Senate
Section 271(b) of
[For effective and termination dates of section 271(b) of
Appeals of Rulings
Section 271(c) of
[For effective date of section 271(c) of
Exercise of Congressional Rulemaking Power
"(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
"(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
"(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
"(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:
(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.
(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].
(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)].
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:
(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 [
(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.
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.
1 So in original. Probably should be capitalized.
2 So in original. Probably should be preceded by "subparagraph".