2 U.S.C. § 901 : US Code - Section 901: Enforcing discretionary spending limits

Search 2 U.S.C. § 901 : US Code - Section 901: Enforcing discretionary spending limits

(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 (!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.
(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 make 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 current year and subtract the estimated level of receipts
for that year.
(cc) OMB shall add one-half of the sum of the amount calculated
under items (aa) and (bb) to the obligation limitations set forth
in the section 8003 of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users and, using current
estimates, calculate the outlay change resulting from the change
in obligations for the budget year and the first outyear and the
outlays flowing therefrom through subsequent fiscal years. After
making the calculations under the preceding sentence, OMB shall
adjust the amount of obligations set forth in that section for
the budget year and the first outyear by adding one-half of the
sum of the amount calculated under items (aa) and (bb) to each
such year.
(II) The estimated level of highway receipts for the purposes
of this clause are - 
(aa) for fiscal year 2005, $31,562,000,000;
(bb) for fiscal year 2006, $33,712,000,000;
(cc) for fiscal year 2007, $34,623,000,000 (!2)
(dd) for fiscal year 2008, $35,449,000,000; and
(ee) for fiscal year 2009, $36,220,000,000.
(III) In this clause, the term "highway receipts" means the
governmental receipts credited to the highway account of the
Highway Trust Fund.
(C) In addition to the adjustment required by subparagraph (B),
when the President submits the budget under section 1105 of title
31 for fiscal year 2007, 2008, or 2009, 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 - 
(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.
(D)(i) When OMB and CBO submit their final sequester report for
fiscal year 2006, that report shall include an estimate of the
outlays for each of the categories that would result in fiscal
years 2007 through 2010 from obligations at the levels specified
in section 8003 of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users using current
assumptions.
(ii) When the President submits the budget under section 1105
of title 31 for fiscal year 2007, 2008, 2009, or 2010, 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, 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) (!3) 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) (!3) 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 2005 - 
(A) for the highway category: $31,277,000,000 in outlays;
(B) for the mass transit category: $955,792,000 in new budget
authority and $6,674,000,000 in outlays;
(2) with respect to fiscal year 2006 - 
(A) for the highway category: $33,942,000,000 in outlays;
(B) for the mass transit category: $1,643,000,000 in new
budget authority and $7,359,000,000 in outlays;
(3) with respect to fiscal year 2007 - 
(A) for the highway category: $36,960,000,000 in outlays;
(B) for the mass transit category: $1,712,000,000 in new
budget authority and $8,120,000,000 in outlays;
(4) with respect to fiscal year 2008 - 
(A) for the highway category: $39,123,000,000 in outlays;
(B) for the mass transit category: $1,858,000,000 in new
budget authority and $8,742,000,000 in outlays;
(5) with respect to fiscal year 2009 - 
(A) for the highway category: $40,660,000,000 in outlays;
(B) for the mass transit category: $1,977,500,000 in new
budget authority and $9,180,000,000 in outlays;
(6) 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;
(7) 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;
(8) 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;
(9) 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;
(10) 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;
(11) 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;
(12) 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;
(13) 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.