[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 260 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 260
To prevent a fiscal crisis by enacting legislation to balance the
Federal budget through reductions of discretionary and mandatory
spending, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
January 10, 2023
Mr. Good of Virginia (for himself, Mr. Perry, and Mr. Moore of Alabama)
introduced the following bill; which was referred to the Committee on
the Budget, and in addition to the Committee on Rules, for a period to
be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
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A BILL
To prevent a fiscal crisis by enacting legislation to balance the
Federal budget through reductions of discretionary and mandatory
spending, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Nickel Plan Act''.
SEC. 2. ESTABLISHMENT AND ENFORCEMENT OF SPENDING CAPS.
(a) Outlay Caps.--The Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 900 et seq.) is amended by inserting after
section 253 the following:
``SEC. 253A. ESTABLISHING OUTLAY CAPS.
``(a) Outlay Caps.--In this section, the term `outlay cap' means:
``(1) Fiscal year 2024.--For fiscal year 2024, total
outlays (less net interest payments) shall be not more than
$5,952,871,000,000, less 5 percent.
``(2) Fiscal year 2025.--For fiscal year 2025, total
outlays (less net interest payments) shall be not more than the
amount computed under paragraph (1), less 5 percent.
``(3) Fiscal year 2026.--For fiscal year 2026, total
outlays (less net interest payments) shall be not more than the
amount computed under paragraph (2), less 5 percent.
``(4) Fiscal year 2027.--For fiscal year 2027, total
outlays (less net interest payments) shall be not more than the
amount computed under paragraph (3), less 5 percent.
``(5) Fiscal year 2028 and subsequent fiscal years.--
``(A) In general.--For fiscal year 2028 and each
fiscal year thereafter, total outlays (including net
interest payments) shall be not more than 17.5 percent
of the gross domestic product for that fiscal year, as
estimated by the Office of Management and Budget prior
to March of the previous fiscal year.
``(B) Limitation.--Notwithstanding subparagraph
(A), for any fiscal year beginning with fiscal year
2029, total projected outlays may not be less than
total projected outlays for the preceding fiscal year.
``(b) Sequestration.--
``(1) In general.--
``(A) Excess spending.--Not later than 45 calendar
days after the beginning of a fiscal year, the Office
of Management and Budget shall prepare and the
President shall order a sequestration to eliminate any
excess outlay amount.
``(B) Definitions.--
``(i) Fiscal years 2024 through 2027.--For
each of fiscal years 2024 through 2027 and for
purposes of this subsection, the term `excess
outlay amount' means the amount by which total
projected Federal outlays (less net interest
payments) for a fiscal year exceeds the outlay
cap for that fiscal year.
``(ii) Fiscal year 2028 and subsequent
fiscal years.--For fiscal year 2028 and each
fiscal year thereafter and for purposes of this
subsection, the term `excess outlay amount'
means the amount by which total projected
Federal outlays for a fiscal year exceeds the
outlay cap for that fiscal year.
``(2) Sequestration.--
``(A) CBO preview report.--On August 15 of each
year, the Congressional Budget Office shall issue a
sequestration preview report as described in section
254(c)(4).
``(B) OMB preview report.--On August 20 of each
year, the Office of Management and Budget shall issue a
sequestration preview report as described in section
254(c)(4).
``(C) Final report.--On October 31 of each year,
the Office of Management and Budget shall issue a final
sequestration report as described in section 254(f)(3),
which shall be accompanied by a Presidential order
detailing spending reductions equal to the excess
outlay amount.
``(D) Process.--The reductions shall generally
follow the process set forth in sections 253 and 254,
except as provided in this section.
``(3) Congressional action.--If the August 20 report by the
Office of Management and Budget projects a sequestration, the
Committee on the Budget of the Senate and the Committee on the
Budget of the House of Representatives may report a resolution
directing committees of their House to change the existing law
to achieve the spending reductions outlined in the August 20
report necessary to meet the outlay limits.
``(c) No Exempt Programs.--Section 255 and section 256 shall not
apply to this section or any sequestration order issued under this
section.
``(d) Look Back.--If, after October 31, a bill resulting in outlays
for the fiscal year in progress is enacted that causes excess outlays,
the excess outlay amount for the next fiscal year shall be increased by
the amount or amounts of that breach.''.
(b) Conforming Amendments to BBEDCA.--
(1) Sequestration preview reports.--Section 254(c)(4) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 904(c)(4)) is amended to read as follows:
``(4) Outlay cap sequestration reports.--The preview
reports shall set forth for the budget year estimates for the
following:
``(A)(i) For each of budget years 2023 through
2027, total projected outlays (less net interest
payments), less five percent.
``(ii) For budget year 2028 and each subsequent
budget year, the estimated gross domestic product for
that budget year.
``(B) The amount of reductions required under
section 253A.
``(C) The sequestration percentage necessary to
achieve the required reduction under section 253A.''.
(2) Final sequestration reports.--Section 254(f)(3) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 904(f)(3)) is amended to read as follows:
``(3) Outlay caps sequestration reports.--The final reports
shall contain all the information required in the outlay cap
sequestration preview reports. In addition, these reports shall
contain, for the budget year, for each account to be
sequestered, estimates of the baseline level of sequestrable
budgetary resources and resulting outlays and the amount of
budgetary sources to be sequestered and result in outlay
reductions. The reports shall also contain estimates of the
effects on outlays on the sequestration of each outyear for
direct spending programs.''.
(c) Enforcement.--Title III of the Congressional Budget Act of 1974
(2 U.S.C. 631 et seq.) is amended by adding after section 315 the
following:
``SEC. 316. ENFORCEMENT PROCEDURES.
``(a) Outlay Caps.--It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment, amendment between the Houses, or conference report that
includes any provision that would cause the most recently reported,
current outlay cap set forth in section 253A of the Balanced Budget and
Emergency Deficit Control Act of 1985 to be breached or increased.
``(b) Waiver or Suspension.--
``(1) In the senate.--The provisions of this section may be
waived or suspended in the Senate only by the affirmative vote
of two-thirds of the Members, duly chosen and sworn.
``(2) In the house.--The provisions of this section may be
waived or suspended in the House of Representatives only by a
rule or order proposing only to waive such provisions by an
affirmative vote of two-thirds of the Members, duly chosen and
sworn.
``(c) Point of Order Protection.--In the House, it shall not be in
order to consider a rule or order that waives the application of
paragraph (2) of subsection (b).
``(d) Motion To Suspend.--It shall not be in order for the Speaker
to entertain a motion to suspend the application of this section under
clause 1 of rule XV.''.
SEC. 3. CONFORMING AMENDMENTS.
The table of contents set forth in--
(1) section 1(b) of the Congressional Budget and
Impoundment Control Act of 1974 is amended by inserting after
the item relating to section 315 the following new item:
``Sec. 316. Enforcement procedures.'';
and
(2) section 250(a) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by inserting after the
item relating to section 253 the following new item:
``Sec. 253A. Establishing outlay caps.''.
SEC. 4. EFFECTIVE DATE.
This Act and the amendments made by this Act shall apply to fiscal
year 2023 and each fiscal year thereafter, including any reports and
calculations required for implementation in fiscal year 2023.
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