Text: H.J.Res.45 — 111th Congress (2009-2010)All Information (Except Text)

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Public Law No: 111-139 (02/12/2010)

 
[111th Congress Public Law 139]
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                       PUBLIC DEBT LIMIT INCREASE

[[Page 124 STAT. 8]]

Public Law 111-139
111th Congress

                            Joint Resolution


 
  Increasing the statutory limit on the public debt. <<NOTE: Feb. 12, 
                        2010 -  [H.J. Res. 45]>> 

    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled, That subsection (b) of section 
3101 of title 31, United States Code, is amended by striking out the 
dollar limitation contained in such subsection and inserting in lieu 
thereof $14,294,000,000,000.

 TITLE I <<NOTE: Statutory Pay-As-You-Go Act of 2010.>> --STATUTORY PAY-
AS-YOU-GO ACT OF 2010

SEC. 1. <<NOTE: 2 USC 931 note.>> SHORT TITLE.

    This title may be cited as the ``Statutory Pay-As-You-Go Act of 
2010''.

SEC. 2. <<NOTE: 2 USC 931.>> PURPOSE.

    The purpose of this title is to reestablish a statutory procedure to 
enforce a rule of budget neutrality on new revenue and direct spending 
legislation.

SEC. 3. <<NOTE: 2 USC 932.>> DEFINITIONS AND APPLICATIONS.

    As used in this title--
            (1) The term ``BBEDCA'' means the Balanced Budget and 
        Emergency Deficit Control Act of 1985.
            (2) The definitions set forth in section 3 of the 
        Congressional Budget and Impoundment Control Act of 1974 and in 
        section 250 of BBEDCA shall apply to this title, except to the 
        extent that they are specifically modified as follows:
                    (A) The term ``outyear'' means a fiscal year one or 
                more years after the budget year.
                    (B) In section 250(c)(8)(C), the reference to the 
                food stamp program shall be deemed to be a reference to 
                the Supplemental Nutrition Assistance Program.
            (3) The term ``AMT'' means the Alternative Minimum Tax for 
        individuals under sections 55-59 of the Internal Revenue Code of 
        1986, the term ``EGTRRA'' means the Economic Growth and Tax 
        Relief Reconciliation Act of 2001 (Public Law 107-16), and the 
        term ``JGTRRA'' means the Jobs and Growth Tax Relief and 
        Reconciliation Act of 2003 (Public Law 108-27).
            (4)(A) The term ``budgetary effects'' means the amount by 
        which PAYGO legislation changes outlays flowing from direct 
        spending or revenues relative to the baseline and shall be 

[[Page 124 STAT. 9]]

determined on the basis of estimates prepared under section 4. Budgetary 
effects that increase outlays flowing from direct spending or decrease 
revenues are termed ``costs'' and budgetary effects that increase 
revenues or decrease outlays flowing from direct spending are termed 
``savings''. Budgetary effects shall not include any costs associated 
with debt service.
            (B) For purposes of these definitions, off-budget effects 
        shall not be counted as budgetary effects.
            (C) Solely for purposes of recording entries on a PAYGO 
        scorecard, provisions in appropriation Acts are also considered 
        to be budgetary effects for purposes of this title if such 
        provisions make outyear modifications to substantive law, except 
        that provisions for which the outlay effects net to zero over a 
        period consisting of the current year, the budget year, and the 
        4 subsequent years shall not be considered budgetary effects. 
        For purposes of this paragraph, the term, ``modifications to 
        substantive law'' refers to changes to or restrictions on 
        entitlement law or other mandatory spending contained in 
        appropriations Acts, notwithstanding section 250(c)(8) of 
        BBEDCA. Provisions in appropriations Acts that are neither 
        outyear modifications to substantive law nor changes in revenues 
        have no budgetary effects for purposes of this title.
            (5) The term ``debit'' refers to the net total amount, when 
        positive, by which costs recorded on the PAYGO scorecards for a 
        fiscal year exceed savings recorded on those scorecards for that 
        year.
            (6) The term ``entitlement law'' refers to a section of law 
        which provides entitlement authority.
            (7) The term ``PAYGO legislation'' or a ``PAYGO Act'' refers 
        to a bill or joint resolution that affects direct spending or 
        revenue relative to the baseline. The budgetary effects of 
        changes in revenues and outyear modifications to substantive law 
        included in appropriation Acts as defined in paragraph (4) shall 
        be treated as if they were contained in PAYGO legislation or a 
        PAYGO Act.
            (8) The term ``timing shift'' refers to a delay of the date 
        on which outlays flowing from direct spending would otherwise 
        occur from the ninth outyear to the tenth outyear or an 
        acceleration of the date on which revenues would otherwise occur 
        from the tenth outyear to the ninth outyear.

SEC. 4. <<NOTE: 2 USC 933.>> PAYGO ESTIMATES AND PAYGO SCORECARDS.

    (a) PAYGO Estimates.--
            (1) <<NOTE: Submissions.>> Required designation in paygo 
        acts.--
                    (A) House of representatives.--To establish the 
                budgetary effects of a PAYGO Act consistent with the 
                determination made by the Chairman of the House Budget 
                Committee, a PAYGO Act originated in or amended by the 
                House of Representatives may include the following 
                statement: ``The budgetary effects of this Act, for the 
                purpose of complying with the Statutory Pay-As-You-Go-
                Act of 2010, shall be determined by reference to the 
                latest statement titled `Budgetary Effects of PAYGO 
                Legislation' for this Act, submitted for printing in the 
                Congressional Record by the Chairman of the House Budget 
                Committee, provided that such statement has been 
                submitted prior to the vote on passage.''.

[[Page 124 STAT. 10]]

                    (B) Senate.--To establish the budgetary effects of a 
                PAYGO Act consistent with the determination made by the 
                Chairman of the Senate Budget Committee, a PAYGO Act 
                originated in or amended by the Senate shall include the 
                following statement: ``The budgetary effects of this 
                Act, for the purpose of complying with the Statutory 
                Pay-As-You-Go-Act of 2010, shall be determined by 
                reference to the latest statement titled `Budgetary 
                Effects of PAYGO Legislation' for this Act, submitted 
                for printing in the Congressional Record by the Chairman 
                of the Senate Budget Committee, provided that such 
                statement has been submitted prior to the vote on 
                passage.''.
                    (C) Conference reports and amendments between the 
                houses.--To establish the budgetary effects of the 
                conference report on a PAYGO Act, or an amendment to an 
                amendment between Houses on a PAYGO Act, which if 
                estimated shall be estimated jointly by the Chairmen of 
                the House and Senate Budget Committees, the conference 
                report or amendment between the Houses shall include the 
                following statement: ``The budgetary effects of this 
                Act, for the purpose of complying with the Statutory 
                Pay-As-You-Go-Act of 2010, shall be determined by 
                reference to the latest statement titled `Budgetary 
                Effects of PAYGO Legislation' for this Act, jointly 
                submitted for printing in the Congressional Record by 
                the Chairmen of the House and Senate Budget Committees, 
                provided that such statement has been submitted prior to 
                the vote on passage in the House acting first on this 
                conference report or amendment between the Houses.''.
            (2) Determination of budgetary effects of paygo acts.--
                    (A) Original legislation.--
                          (i) Statement and estimate.--Prior to a vote 
                      on passage of a PAYGO Act originated or amended by 
                      one House, the Chairman of the Budget Committee of 
                      that House may submit for printing in the 
                      Congressional Record a statement titled 
                      ``Budgetary Effects of PAYGO Legislation'' which 
                      shall include an estimate of the budgetary effects 
                      of that Act, if available prior to passage of the 
                      Act by that House and shall submit, if applicable, 
                      an identification of any current policy 
                      adjustments made pursuant to section 7 of this 
                      Act. The timely submission of such a statement, in 
                      conjunction with the appropriate designation made 
                      pursuant to paragraph (1)(A) or (1)(B), as 
                      applicable, shall establish the budgetary effects 
                      of the PAYGO Act for the purposes of this Act.
                          (ii) Effect.--The latest statement submitted 
                      by the Chairman of the Budget Committee of that 
                      House prior to passage shall supersede any prior 
                      statements submitted in the Congressional Record 
                      and shall be valid only if the PAYGO Act is not 
                      further amended by either House.
                          (iii) Failure to submit estimate.--If--
                                    (I) the estimate required by clause 
                                (i) has not been submitted prior to 
                                passage by that House;

[[Page 124 STAT. 11]]

                                    (II) such estimate has been 
                                submitted but is no longer valid due to 
                                a subsequent amendment to the PAYGO Act; 
                                or
                                    (III) the designation required 
                                pursuant to this subsection has not been 
                                made;
                      the budgetary effects of the PAYGO Act shall be 
                      determined under subsection (d)(3), provided that 
                      this clause shall not apply if a valid designation 
                      is subsequently included in that PAYGO Act 
                      pursuant to paragraph (1)(C) and a statement is 
                      submitted pursuant to subparagraph (B).
                    (B) Conference reports and amendments between 
                houses.--
                          (i) In general.--Prior to the adoption of a 
                      report of a committee of conference on a PAYGO Act 
                      in either House, or disposition of an amendment to 
                      an amendment between Houses on a PAYGO Act, the 
                      Chairmen of the Budget Committees of the House and 
                      Senate may jointly submit for printing in the 
                      Congressional Record a statement titled 
                      ``Budgetary Effects of PAYGO Legislation'' which 
                      shall include an estimate of the budgetary effects 
                      of that Act if available prior to passage of the 
                      Act by the House acting first on the legislation 
                      and shall submit, if applicable, an identification 
                      of any current policy adjustments made pursuant to 
                      section 7 of this title. The timely submission of 
                      such a statement, in conjunction with the 
                      appropriate designation made pursuant to paragraph 
                      (1)(C), shall establish the budgetary effects of 
                      the PAYGO Act for the purposes of this Act.
                          (ii) Failure to submit estimate.--If such 
                      estimate has not been submitted prior to the 
                      adoption of a report of a committee of conference 
                      by either House, or if the designation required 
                      pursuant to this subsection has not been made, the 
                      budgetary effects of the PAYGO Act shall be 
                      determined under subsection (d)(3).
            (3) Procedure in the senate.--In the Senate, upon submission 
        of a statement titled ``Budgetary Effects of PAYGO Legislation'' 
        by the Chairman of the Senate Budget Committee for printing in 
        the Congressional Record, the Legislative Clerk shall read the 
        statement.
            (4) Jurisdiction of the budget committees.--For the purposes 
        of enforcing section 306 of the Congressional Budget Act of 
        1974, a designation made pursuant to paragraph (1)(A), (1)(B), 
        or (1)(C), that includes only the language specifically 
        prescribed therein, shall not be considered a matter within the 
        jurisdiction of either the Senate or House Committees on the 
        Budget.

    (b) CBO PAYGO Estimates.--
            (1) In general.--
                    (A) Estimates.--Section 308(a) of the Congressional 
                Budget Act of <<NOTE: 2 USC 639.>> 1974 is amended by 
                adding at the end the following new paragraph:
            ``(3) CBO paygo estimates.--
                    ``(A) The Chairs of the Committees on the Budget of 
                the House and Senate, as applicable, shall request from

[[Page 124 STAT. 12]]

                the Director of the Congressional Budget Office an 
                estimate of the budgetary effects of PAYGO legislation.
                    ``(B) Estimates shall be prepared using baseline 
                estimates supplied by the Congressional Budget Office, 
                consistent with section 257 of the Balanced Budget and 
                Emergency Deficit Control Act of 1985.
                    ``(C) The Director shall not count timing shifts, as 
                that term is defined at section 3(8) of the Statutory 
                Pay-As-You-Go Act of 2010, in estimates of the budgetary 
                effects of PAYGO Legislation.''.
                    (B) Sideheading.--The side heading of section 308(a) 
                of the Congressional Budget Act of 1974 is amended by 
                striking ``Reports on''.
            (2) Guidelines.--Section 308 of the Congressional Budget Act 
        of 1974 is amended by adding at the end the following new 
        subsection:

    ``(d) Scorekeeping Guidelines.--Estimates under this section shall 
be provided in accordance with the scorekeeping guidelines determined 
under section 252(d)(5) of the Balanced Budget and Emergency Deficit 
Control Act of 1985.''.
    (c) Current Policy Adjustments for Certain Legislation.--
            (1) In general.--For any provision of legislation that meets 
        the criteria in subsection (c), (d), (e) or (f) of section 7, 
        the Chairs of the Committees on the Budget of the House and 
        Senate, as applicable, shall request that CBO adjust the 
        estimate of budgetary effects of that legislation pursuant to 
        paragraph (2) for the purposes of this title. A single piece of 
        legislation may contain provisions that meet criteria in more 
        than one of the subsections referred to in the preceding 
        sentence. CBO shall adjust estimates for legislation designated 
        under subsection (a) and estimated under subsection (b). OMB 
        shall adjust estimates for legislation estimated under 
        subsection (d)(3).
            (2) Adjustments.--
                    (A) Estimates.--CBO or OMB, as applicable, shall 
                exclude from the estimate of budgetary effects any 
                budgetary effects of a provision that meets the criteria 
                in subsection (c), (d), (e) or (f) of section 7, to the 
                extent that those budgetary effects, when combined with 
                all other excluded budgetary effects of any other 
                previously designated provisions of enacted legislation 
                under the same subsection of section 7, do not exceed 
                the maximum applicable current policy adjustment defined 
                under the applicable subsection of section 7 for the 
                applicable 10-year period.
                    (B) Baseline.--Any estimate made pursuant to 
                subparagraph (A) shall be prepared using baseline 
                estimates supplied by the Congressional Budget Office, 
                consistent with section 257 of the BBEDCA. CBO estimates 
                of legislation adjusted for current policy shall include 
                a separate presentation of costs excluded from the 
                calculation of budgetary effects for the legislation, as 
                well as an updated total of all excluded costs of 
                provisions within subsection (c), (d), or (e) of section 
                7, as applicable, and in the case of paragraph (1) of 
                section 7(f), within any of the subparagraphs (A) 
                through (L) of such paragraph, as applicable.

[[Page 124 STAT. 13]]

            (3) Limitation on availability of excess savings.--
                    (A) Prohibition on use of excess saving for 
                ineligible policies.--To the extent the adjustment for 
                current policy of any provision estimated under this 
                subsection exceeds the estimated budgetary effects of 
                that provision, these excess savings shall not be 
                available to offset the costs of any provisions not 
                otherwise eligible for a current policy adjustment under 
                section 7, and shall not be counted on the PAYGO 
                scorecards established pursuant to subsections (d)(4) 
                and (d)(5).
                    (B) Prohibition on use of excess savings across 
                budget areas.--For provisions eligible for a current 
                policy adjustment under subsections (c) through (f) of 
                section 7, to the extent the adjustment for current 
                policy of any provision exceeds the estimated budgetary 
                effects of that same provision, the excess savings shall 
                be available only to offset the costs of other 
                provisions that qualify for a current policy adjustment 
                in that same subsection. Each paragraph in section 
                7(f)(1) shall be considered a separate subsection for 
                purposes of this section.
            (4) Further guidance on estimating budgetary effects.--
        Estimates of budgetary effects under this subsection shall be 
        consistent with the guidance provided at section 7(h).
            (5) Inclusion of statement.--For PAYGO legislation adjusted 
        pursuant to section 7, the Chairman of the House or Senate 
        Budget Committee, as applicable, shall include in any statement 
        titled ``Budgetary Effects of PAYGO Legislation'', submitted for 
        that legislation pursuant to section 4, an explanation of the 
        current policy designation and adjustments.

    (d) OMB PAYGO Scorecards.--
            (1) In general. <<NOTE: Public information.>> --OMB shall 
        maintain and make publicly available a continuously updated 
        document containing two PAYGO scorecards displaying the 
        budgetary effects of PAYGO legislation as determined under 
        section 308 of the Congressional Budget Act of 1974, applying 
        the look-back requirement in subsection (e) and the averaging 
        requirement in subsection (f), and a separate addendum 
        displaying the estimates of the costs of provisions designated 
        in statute as emergency requirements.
            (2) Estimates in legislation.--Except as provided in 
        paragraph (3), in making the calculations for the PAYGO 
        scorecards, OMB shall use the budgetary effects included by 
        reference in the applicable legislation pursuant to subsection 
        (a).
            (3) OMB paygo estimates.--If a PAYGO Act does not contain a 
        valid reference to its budgetary effects consistent with 
        subsection (a), OMB shall estimate the budgetary effects of that 
        legislation upon its enactment. The OMB estimate shall be based 
        on the approaches to scorekeeping set forth in section 308 of 
        the Congressional Budget Act of 1974, as amended by this title, 
        and subsection (g)(4), and shall use the same economic and 
        technical assumptions as used in the most recent budget 
        submitted by the President under section 1105(a) of title 31 of 
        the United States Code.
            (4) 5-year scorecard.--The first scorecard shall display the 
        budgetary effects of PAYGO legislation in each year over the 5-
        year period beginning in the budget year.

[[Page 124 STAT. 14]]

            (5) 10-year scorecard.--The second scorecard shall display 
        the budgetary effects of PAYGO legislation in each year over the 
        10-year period beginning in the budget year.
            (6) Community living assistance services and supports act.--
        Neither scorecard maintained by OMB pursuant to this subsection 
        shall include net savings from any provisions of legislation 
        titled ``Community Living Assistance Services and Supports 
        Act'', which establishes a Federal insurance program for long-
        term care, if such legislation is enacted into law, or amended, 
        subsequent to the date of enactment of this title.

    (e) Look-back To Capture Current-year Effects.--For purposes of this 
section, OMB shall treat the budgetary effects of PAYGO legislation 
enacted during a session of Congress that occur during the current year 
as though they occurred in the budget year.
    (f) Averaging Used To Measure Compliance Over 5-year and 10-year 
Periods.--OMB shall cumulate the budgetary effects of a PAYGO Act over 
the budget year (which includes any look-back effects under subsection 
(e)) and--
            (1) for purposes of the 5-year scorecard referred to in 
        subsection (d)(4), the four subsequent outyears, divide that 
        cumulative total by five, and enter the quotient in the budget-
        year column and in each subsequent column of the 5-year PAYGO 
        scorecard; and
            (2) for purposes of the 10-year scorecard referred to in 
        subsection (d)(5), the nine subsequent outyears, divide that 
        cumulative total by ten, and enter the quotient in the budget-
        year column and in each subsequent column of the 10-year PAYGO 
        scorecard.

    (g) Emergency Legislation.--
            (1) Designation in statute.--If a provision of direct 
        spending or revenue legislation in a PAYGO Act is enacted as an 
        emergency requirement that the Congress so designates in statute 
        pursuant to this section, the amounts of new budget authority, 
        outlays, and revenue in all fiscal years resulting from that 
        provision shall be treated as an emergency requirement for the 
        purposes of this Act.
            (2) Designation in the house of representatives.--If a PAYGO 
        Act includes a provision expressly designated as an emergency 
        for the purposes of this title, the Chair shall put the question 
        of consideration with respect thereto.
            (3) Point of order in the senate.--
                    (A) In general.--When the Senate is considering a 
                PAYGO Act, if a point of order is made by a Senator 
                against an emergency designation in that measure, that 
                provision making such a designation shall be stricken 
                from the measure and may not be offered as an amendment 
                from the floor.
                    (B) Supermajority waiver and appeals.--
                          (i) Waiver.--Subparagraph (A) may be waived or 
                      suspended in the Senate only by an affirmative 
                      vote of three-fifths of the Members, duly chosen 
                      and sworn.
                          (ii) Appeals.--Appeals in the Senate from the 
                      decisions of the Chair relating to any provision 
                      of this subsection shall be limited to 1 hour, to 
                      be equally divided between, and controlled by, the 
                      appellant and the manager of the bill or joint 
                      resolution, as the

[[Page 124 STAT. 15]]

                      case may be. An affirmative vote of three-fifths 
                      of the Members of the Senate, duly chosen and 
                      sworn, shall be required to sustain an appeal of 
                      the ruling of the Chair on a point of order raised 
                      under this subsection.
                    (C) Definition of an emergency designation.--For 
                purposes of subparagraph (A), a provision shall be 
                considered an emergency designation if it designates any 
                item as an emergency requirement pursuant to this 
                subsection.
                    (D) Form of the point of order.--A point of order 
                under subparagraph (A) may be raised by a Senator as 
                provided in section 313 (e) of the Congressional Budget 
                Act of 1974.
                    (E) Conference reports.--When the Senate is 
                considering a conference report on, or an amendment 
                between the Houses in relation to, a PAYGO Act, upon a 
                point of order being made by any Senator pursuant to 
                this section, and such point of order being sustained, 
                such material contained in such conference report shall 
                be deemed stricken, and the Senate shall proceed to 
                consider the question of whether the Senate shall recede 
                from its amendment and concur with a further amendment, 
                or concur in the House amendment with a further 
                amendment, as the case may be, which further amendment 
                shall consist of only that portion of the conference 
                report or House amendment, as the case may be, not so 
                stricken. Any such motion in the Senate shall be 
                debatable. In any case in which such point of order is 
                sustained against a conference report (or Senate 
                amendment derived from such conference report by 
                operation of this subsection), no further amendment 
                shall be in order.
            (4) Effect of designation on scoring.--If a provision is 
        designated as an emergency requirement under this Act, CBO or 
        OMB, as applicable, shall not include the budgetary effects of 
        such a provision in its estimate of the budgetary effects of 
        that PAYGO legislation.

SEC. 5. <<NOTE: 2 USC 934.>> ANNUAL REPORT AND SEQUESTRATION ORDER.

    (a) Annual Report. <<NOTE: Public information. Federal Register, 
publication.>> --Not later than 14 days (excluding weekends and 
holidays) after Congress adjourns to end a session, OMB shall make 
publicly available and cause to be printed in the Federal Register an 
annual PAYGO report. The report shall include an up-to-date document 
containing the PAYGO scorecards, a description of any current policy 
adjustments made under section 4(c), information about emergency 
legislation (if any) designated under section 4(g), information about 
any sequestration if required by subsection (b), and other data and 
explanations that enhance public understanding of this title and actions 
taken under it.

    (b) Sequestration Order. <<NOTE: President.>> --If the annual report 
issued at the end of a session of Congress under subsection (a) shows a 
debit on either PAYGO scorecard for the budget year, OMB shall prepare 
and the President shall issue and include in that report a sequestration 
order that, upon issuance, shall reduce budgetary resources of direct 
spending programs by enough to offset that debit as prescribed in 
section 6. If there is a debit on both scorecards, the order shall fully 
offset the larger of the two debits. OMB shall transmit the order and 
the report to the House of

[[Page 124 STAT. 16]]

Representatives and the Senate. If the President issues a sequestration 
order, the annual report shall contain, for each budget account to be 
sequestered, estimates of the baseline level of budgetary resources 
subject to sequestration, the amount of budgetary resources to be 
sequestered, and the outlay reductions that will occur in the budget 
year and the subsequent fiscal year because of that sequestration.

SEC. 6. <<NOTE: 2 USC 935.>> CALCULATING A SEQUESTRATION.

    (a) Reducing Nonexempt Budgetary Resources by a Uniform 
Percentage.--
            (1) In general.--OMB shall calculate the uniform percentage 
        by which the budgetary resources of nonexempt direct spending 
        programs are to be sequestered such that the outlay savings 
        resulting from that sequestration, as calculated under 
        subsection (b), shall offset the budget-year debit, if any, on 
        the applicable PAYGO scorecard. If the uniform percentage 
        calculated under the prior sentence exceeds 4 percent, the 
        Medicare programs described in section 256(d) of BBEDCA shall be 
        reduced by 4 percent and the uniform percentage by which the 
        budgetary resources of all other nonexempt direct spending 
        programs are to be sequestered shall be increased, as necessary, 
        so that the sequestration of Medicare and of all other nonexempt 
        direct spending programs together produce the required outlay 
        savings.
            (2) Programs and activities in unified budget only.--
        Subject <<NOTE: Determination.>> to the exemptions set forth in 
        section 11, OMB shall determine the uniform percentage required 
        under paragraph (1) with respect to programs and activities 
        contained in the unified budget only.

    (b) Outlay Savings.--In determining the amount by which a 
sequestration offsets a budget-year debit, OMB shall count--
            (1) the amount by which the sequestration in a crop year of 
        crop support payments, pursuant to section 256(j) of BBEDCA, 
        reduces outlays in the budget year and the subsequent fiscal 
        year;
            (2) the amount by which the sequestration of Medicare 
        payments in the 12-month period following the sequestration 
        order, pursuant to section 256(d) of BBEDCA, reduces outlays in 
        the budget year and the subsequent fiscal year; and
            (3) the amount by which the sequestration in the budget year 
        of the budgetary resources of other nonexempt mandatory programs 
        reduces outlays in the budget year and in the subsequent fiscal 
        year.

SEC. 7. <<NOTE: 2 USC 936.>> ADJUSTMENT FOR CURRENT POLICIES.

    (a) Purpose.--The purpose of this section is to provide for 
adjustments of estimates of budgetary effects of PAYGO legislation for 
legislation affecting 4 areas of the budget--
            (1) payments made under section 1848 of the Social Security 
        Act (referred to in this section as ``Payment for Physicians' 
        Services'');
            (2) the Estate and Gift Tax under subtitle B of the Internal 
        Revenue Code of 1986;
            (3) the AMT; and
            (4) provisions of EGTRRA or JGTRRA that amended the Internal 
        Revenue Code of 1986 (or provisions in later statutes

[[Page 124 STAT. 17]]

        further amending the amendments made by EGTRRA or JGTRRA), other 
        than--
                    (A) the provisions of those 2 Acts that were made 
                permanent by the Pension Protection Act of 2006 (Public 
                Law 109-280);
                    (B) amendments to the Estate and Gift Tax referred 
                to in paragraph (2);
                    (C) the AMT referred to in paragraph (3); and
                    (D) the income tax rates on ordinary income that 
                apply to individuals with adjusted gross incomes greater 
                than $200,000 for a single filer and $250,000 for joint 
                filers.

    (b) Duration.--This section shall remain in effect through December 
31, 2011.
    (c) Medicare Payments to Physicians.--
            (1) Criteria.--Legislation that includes provisions amending 
        or superseding the system for updating payments under 
        subsections (d) and (f) of section 1848 of the Social Security 
        Act shall trigger the current policy adjustment required by this 
        title.
            (2) Adjustment.--The amount of the maximum current policy 
        adjustment shall be the difference between--
                    (A) estimated net outlays attributable to the 
                payment rates and related parameters in accordance with 
                subsections (d) and (f) of section 1848 of the Social 
                Security Act (as scheduled on December 31, 2009, to be 
                in effect); and
                    (B) what those net outlays would have been if--
                          (i) the nominal payment rates and related 
                      parameters in effect for 2009 had been in effect 
                      through December 31, 2014, without change; and
                          (ii) thereafter, the nominal payment rates and 
                      related parameters described in subparagraph (A) 
                      had applied and the assumption described in clause 
                      (i) had never applied.
            (3) Limitation.--If the provisions in the legislation that 
        cause it to meet the criteria in paragraph (1) cover a time 
        period that ends before December 31, 2014, subject to the 
        maximum adjustment provided for under paragraph (2), the amount 
        of each current policy adjustment made pursuant to this section 
        shall be limited to the difference between--
                    (A) estimated net outlays attributable to the 
                payment rates and related parameters specified in that 
                section of the Social Security Act (as scheduled on 
                December 31, 2009, to be in effect for the period of 
                time covered by the relevant provisions of the eligible 
                legislation); and
                    (B) what those net outlays would have been if the 
                nominal payment rates and related parameters in effect 
                for 2009 had been in effect, without change, for the 
                same period of time covered by the relevant provisions 
                of the eligible legislation as under subparagraph (A).

    (d) Estate and Gift Tax.--
            (1) Criteria.--Legislation that includes provisions amending 
        the Estate and Gift Tax under subtitle B of the Internal Revenue 
        Code of 1986 shall trigger the current policy adjustment 
        required by this title.
            (2) Adjustment.--The amount of the maximum current policy 
        adjustment shall be the difference between--

[[Page 124 STAT. 18]]

                    (A) total revenues projected to be collected under 
                the Internal Revenue Code of 1986 (as scheduled on 
                December 31, 2009, to be in effect); and
                    (B) what those revenue collections would have been 
                if, on the date of enactment of the legislation meeting 
                the criteria in paragraph (1), estate and gift tax law 
                had instead been amended so that the tax rates, nominal 
                exemption amounts, and related parameters in effect for 
                tax year 2009 had remained in effect through December 
                31, 2011, with nominal exemption amounts indexed for 
                inflation after 2009 consistent with subsection (g).
            (3) Limitation.--If the provisions in the legislation that 
        cause it to meet the criteria in paragraph (1) cover a time 
        period that ends before December 31, 2011, subject to the 
        maximum adjustment provided for under paragraph (2), the amount 
        of each current policy adjustment made pursuant to this section 
        shall be limited to the difference between--
                    (A) total revenues projected to be collected under 
                the Internal Revenue Code of 1986 (as scheduled on 
                December 31, 2009, to be in effect for the period of 
                time covered by the relevant provisions of the eligible 
                legislation); and
                    (B) what those revenues would have been if the 
                estate and gift tax law rates, nominal exemption 
                amounts, and related parameters in effect for 2009, with 
                nominal exemption amounts indexed for inflation after 
                2009 consistent with subsection (g), had been in effect 
                for the same period of time covered by the relevant 
                provisions of the eligible legislation as under 
                subparagraph (A).
            (4) Duration of policy adjustment.--Adjustments made 
        pursuant to this subsection are available for policies affecting 
        the estate and gift tax through only December 31, 2011. Any 
        adjustments shall include budgetary effects in all years from 
        these policy changes.

    (e) AMT Relief.--
            (1) Criteria.--Legislation that includes provisions 
        extending AMT relief shall trigger the current policy adjustment 
        required by this title.
            (2) Adjustment.--The amount of the maximum current policy 
        adjustment shall be the difference between--
                    (A) total revenues projected to be collected under 
                the Internal Revenue Code of 1986 (as scheduled on 
                December 31, 2009, to be in effect); and
                    (B) what those revenue collections would have been 
                if, on the date of enactment of legislation meeting the 
                criteria in paragraph (1), AMT law had instead been 
                amended by making commensurate adjustments in the 
                exemption amounts for joint and single filers in such a 
                manner that the number of taxpayers with AMT liability 
                or lost credits that occur as a result of the AMT would 
                not be estimated to exceed the number of taxpayers 
                affected by the AMT in tax year 2008 in any year for 
                which relief is provided, through December 31, 2011.
            (3) Limitation.--If the provisions in the legislation that 
        cause it to meet the criteria in paragraph (1) cover a time 
        period that ends before December 31, 2011, subject to the 
        maximum adjustment provided for under paragraph (2), the

[[Page 124 STAT. 19]]

        amount of each current policy adjustment made pursuant to this 
        section shall be limited to the difference between--
                    (A) total revenues projected to be collected under 
                the Internal Revenue Code of 1986 (as scheduled on 
                December 31, 2009, to be in effect for the period of 
                time covered by the relevant provisions of the eligible 
                legislation); and
                    (B) what those revenues would have been if, on the 
                date of enactment of legislation meeting the criteria in 
                paragraph (1), AMT law had instead been amended by 
                making commensurate adjustments in the exemption amounts 
                for joint and single filers in such a manner that the 
                number of taxpayers with AMT liability or lost credits 
                that occur as a result of the AMT would not be estimated 
                to exceed the number of AMT taxpayers in tax year 2008 
                for the same period of time covered by the relevant 
                provisions of the eligible legislation as under 
                subparagraph (A).
            (4) Duration of policy adjustment.--Adjustments made 
        pursuant to this subsection are available for policies affecting 
        the AMT through only December 31, 2011. Any adjustments shall 
        include budgetary effects in all years from these policy 
        changes.

    (f) Permanent Extension of Middle-class Tax Cuts.--
            (1) Criteria.--Legislation that includes provisions 
        extending middle-class tax cuts shall trigger the current policy 
        adjustment required by this title if those provisions extend 1 
        or more of the following provisions:
                    (A) The 10 percent bracket as in effect for tax year 
                2010, as provided for under section 101(a) of EGTRRA and 
                any later amendments through December 31, 2009.
                    (B) The child tax credit as in effect for tax year 
                2010, as provided for under section 201 of EGTRRA and 
                any later amendments through December 31, 2009.
                    (C) Tax benefits for married couples as in effect 
                for tax year 2010, as provided for under title III of 
                EGTRRA and any later amendments through December 31, 
                2009.
                    (D) The adoption credit as in effect in tax year 
                2010, as provided for under section 202 of EGTRRA and 
                any later amendments through December 31, 2009.
                    (E) The dependent care credit as in effect in tax 
                year 2010, as provided for under section 204 of EGTRRA 
                and any later amendments through December 31, 2009.
                    (F) The employer-provided child care credit as in 
                effect in tax year 2010, as provided for under section 
                205 of EGTRRA and any later amendments through December 
                31, 2009.
                    (G) The education tax benefits as in effect in tax 
                year 2010, as provided for under title IV of EGTRRA and 
                any later amendments through December 31, 2009.
                    (H) The 25 and 28 percent brackets as in effect for 
                tax year 2010, as provided for under section 101(a) of 
                EGTRRA and any later amendments through December 31, 
                2009.
                    (I) The 33 percent bracket as in effect for tax year 
                2010, as provided for under section 101(a) of EGTRRA and 
                any later amendment through December 31, 2009, affecting 
                taxpayers with adjusted gross income of $200,000 or less 
                for single filers and $250,000 or less for joint filers

[[Page 124 STAT. 20]]

                in tax year 2010, with these income levels indexed for 
                inflation in each subsequent year consistent with 
                subsection (g).
                    (J) The rates on income derived from capital gains 
                and qualified dividends as in effect for tax year 2010, 
                as provided for under sections 301 and 302 of JGTRRA and 
                any later amendment through December 31, 2009, affecting 
                taxpayers with adjusted gross income of $200,000 or less 
                for single filers and $250,000 for joint filers with 
                these income levels indexed for inflation in each 
                subsequent year consistent with subsection (g).
                    (K) The phaseout of personal exemptions and the 
                overall limitation on itemized deductions as in effect 
                for tax year 2010, as provided for under sections 102 
                and 103 of EGTRRA of 2001, respectively, and any later 
                amendment through December 31, 2009, affecting taxpayer 
                with adjusted gross income of $200,000 or less for 
                single filers and $250,000 for joint filers, with these 
                income levels indexed for inflation in each subsequent 
                year consistent with subsection (g).
                    (L) The increase in the limitations on expensing 
                depreciable business assets for small businesses under 
                section 179(b) of the Internal Revenue Code of 1986 as 
                in effect in tax year 2010, as provided under section 
                202 of JGTRRA and any later amendment through December 
                31, 2009.
            (2) Adjustment.--The amount of the maximum current policy 
        adjustment shall be the difference between--
                    (A) total revenues projected to be collected and 
                outlays to be paid under the Internal Revenue Code of 
                1986 (as scheduled on December 31, 2009, to be in 
                effect); and
                    (B) what those revenue collections and outlay 
                payments would have been if, on the date of enactment of 
                legislation meeting the criteria in paragraph (1), the 
                provisions identified in paragraph (1) were made 
                permanent.
            (3) Limitation.--If the provisions in the legislation that 
        cause it to meet the criteria in paragraph (1) are not 
        permanent, subject to the maximum adjustment provided for under 
        paragraph (2), the amount of each current policy adjustment made 
        pursuant to this section shall be limited to the difference 
        between--
                    (A) total revenues projected to be collected and 
                outlays to be paid under the Internal Revenue Code of 
                1986 (as scheduled on December 31, 2009, to be in effect 
                for the period of time covered by the relevant 
                provisions of the eligible legislation); and
                    (B) what those revenue collections and outlay 
                payments would have been if, on the date of enactment of 
                legislation meeting the criteria in paragraph (1), the 
                provisions identified in paragraph (1) had been in 
                effect, without change, for the same period of time 
                covered by the relevant provisions of the eligible 
                legislation as under subparagraph (A).

    (g) Indexing for Inflation.--Indexed amounts are assumed to increase 
in each year by an amount equal to the cost-of-living adjustment 
determined under section 1(f)(3) of the Internal Revenue Code of 1986 
for the calendar year in which the taxable year begins, determined by 
substituting ``calendar year 2008'' for ``calendar year 1992'' in 
subparagraph (B) of such section.

[[Page 124 STAT. 21]]

    (h) Guidance on Estimates and Current Policy Adjustments.--
            (1) Middle class tax cuts.--For purposes of estimates made 
        pursuant to subsection (f)--
                    (A) each of the income tax provisions shall be 
                estimated as though the AMT had remained at current law 
                as scheduled on December 31, 2009 to be in effect; and
                    (B) if more than 1 of the income tax provisions is 
                included in a single piece of legislation, those 
                provisions shall be estimated in the order in which they 
                appear.
            (2) AMT.--For purposes of estimates made pursuant to 
        subsection (e), changes to the AMT shall be estimated as if, on 
        the date of enactment of legislation meeting the criteria in 
        subsection (e)(1), all of the income tax provisions identified 
        in subsection (f)(1) were made permanent.

SEC. 8. <<NOTE: 2 USC 937.>> APPLICATION OF BBEDCA.

    For purposes of this title--
            (1) notwithstanding section 275 of BBEDCA, the provisions of 
        sections 255, 256, 257, and 274 of BBEDCA, as amended by this 
        title, shall apply to the provisions of this title;
            (2) references in sections 255, 256, 257, and 274 to ``this 
        part'' or ``this title'' shall be interpreted as applying to 
        this title;
            (3) references in sections 255, 256, 257, and 274 of BBEDCA 
        to ``section 254'' shall be interpreted as referencing section 5 
        of this title;
            (4) the reference in section 256(b) of BBEDCA to ``section 
        252 or 253'' shall be interpreted as referencing section 5 of 
        this title;
            (5) the reference in section 256(d)(1) of BBEDCA to 
        ``section 252 or 253'' shall be interpreted as referencing 
        section 6 of this title;
            (6) the reference in section 256(d)(4) of BBEDCA to 
        ``section 252 or 253'' shall be interpreted as referencing 
        section 5 of this title;
            (7) section 256(k) of BBEDCA shall apply to a sequestration, 
        if any, under this title; and
            (8) references in section 257(e) of BBEDCA to ``section 251, 
        252, or 253'' shall be interpreted as referencing section 4 of 
        this title.

SEC. 9. TECHNICAL CORRECTIONS.

    (a) Section 250(c)(18) of BBEDCA <<NOTE: 2 USC 900.>> is amended by 
striking ``the expenses the Federal deposit insurance agencies'' and 
inserting ``the expenses of the Federal deposit insurance agencies''.

    (b) Section 256(k)(1) of BBEDCA <<NOTE: 2 USC 906.>> is amended by 
striking ``in paragraph (5)'' and inserting ``in paragraph (6)''.

SEC. 10. CONFORMING AMENDMENTS.

    (a) Section 256(a) of BBEDCA <<NOTE: Repeal.>> is repealed.

    (b) Section 256(b) of BBEDCA is amended by striking ``origination 
fees under sections 438(c)(2) and 455(c) of that Act shall each be 
increased by 0.50 percentage point.'' and inserting in lieu thereof 
``origination fees under sections 438(c)(2) and (6) and 455(c) and loan 
processing and issuance fees under section 428(f)(1)(A)(ii) of that Act 
shall each be increased by the uniform percentage specified in that 
sequestration order, and, for student loans originated during

[[Page 124 STAT. 22]]

the period of the sequestration, special allowance payments under 
section 438(b) of that Act accruing during the period of the 
sequestration shall be reduced by the uniform percentage specified in 
that sequestration order.''.
    (c) Section 256(c) of BBEDCA <<NOTE: Repeal.>> is repealed.

    (d) Section 256(d) of BBEDCA is amended--
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (5), and (6);
            (2) by amending paragraph (1) to read as follows:
            ``(1) Calculation of reduction in payment amounts.--
        To <<NOTE: Determination. Applicability.>> achieve the total 
        percentage reduction in those programs required by section 252 
        or 253, subject to paragraph (2), and notwithstanding section 
        710 of the Social Security Act, OMB shall determine, and the 
        applicable Presidential order under section 254 shall implement, 
        the percentage reduction that shall apply, with respect to the 
        health insurance programs under title XVIII of the Social 
        Security Act--
                    ``(A) in the case of parts A and B of such title, to 
                individual payments for services furnished during the 
                one-year period beginning on the first day of the first 
                month beginning after the date the order is issued (or, 
                if later, the date specified in paragraph (4)); and
                    ``(B) in the case of parts C and D, to monthly 
                payments under contracts under such parts for the same 
                one-year period;
        such that the reduction made in payments under that order shall 
        achieve the required total percentage reduction in those 
        payments for that period.''.
            (3) by inserting after paragraph (1) the following:
            ``(2) Uniform reduction rate; maximum permissible 
        reduction.--Reductions in payments for programs and activities 
        under such title XVIII pursuant to a sequestration order under 
        section 254 shall be at a uniform rate, which shall not exceed 4 
        percent, across all such programs and activities subject to such 
        order.'';
            (4) by inserting after paragraph (3), as redesignated, the 
        following:
            ``(4) Timing of subsequent sequestration order.--A 
        sequestration order required by section 252 or 253 with respect 
        to programs under such title XVIII shall not take effect until 
        the first month beginning after the end of the effective period 
        of any prior sequestration order with respect to such programs, 
        as determined in accordance with paragraph (1).'';
            (5) in paragraph (6), as redesignated, to read as follows:
            ``(6) Sequestration disregarded in computing payment 
        amounts.--The Secretary of Health and Human Services shall not 
        take into account any reductions in payment amounts which have 
        been or may be effected under this part, for purposes of 
        computing any adjustments to payment rates under such title 
        XVIII, specifically including--
                    ``(A) the part C growth percentage under section 
                1853(c)(6);
                    ``(B) the part D annual growth rate under section 
                1860D-2(b)(6); and
                    ``(C) application of risk corridors to part D 
                payment rates under section 1860D-15(e).''; and

[[Page 124 STAT. 23]]

            (6) by adding after paragraph (6), as redesignated, the 
        following:
            ``(7) Exemptions from sequestration.--In addition to the 
        programs and activities specified in section 255, the following 
        shall be exempt from sequestration under this part:
                    ``(A) Part d low-income subsidies.--Premium and 
                cost-sharing subsidies under section 1860D-14 of the 
                Social Security Act.
                    ``(B) Part d catastrophic subsidy.--Payments under 
                section 1860D-15(b) and (e)(2)(B) of the Social Security 
                Act.
                    ``(C) Qualified individual (qi) premiums.--Payments 
                to States for coverage of Medicare cost-sharing for 
                certain low-income Medicare beneficiaries under section 
                1933 of the Social Security Act.''.

SEC. 11. EXEMPT PROGRAMS AND ACTIVITIES.

    (a) Designations.--Section 255 of <<NOTE: 2 USC 905.>> BBEDCA is 
amended by redesignating subsection (i) as (j) and striking ``1998'' and 
inserting in lieu thereof ``2010''.

    (b) Social Security, Veterans Programs, Net Interest, and Tax 
Credits.--Subsections (a) through (d) of section 255 of BBEDCA are 
amended to read as follows:
    ``(a) Social Security Benefits and Tier I Railroad Retirement 
Benefits.--Benefits payable under the old-age, survivors, and disability 
insurance program established under title II of the Social Security Act 
(42 U.S.C. 401 et seq.), and benefits payable under section 231b(a), 
231b(f)(2), 231c(a), and 231c(f) of title 45 United States Code, shall 
be exempt from reduction under any order issued under this part.
    ``(b) Veterans Programs.--The following programs shall be exempt 
from reduction under any order issued under this part:
            ``All programs administered by the Department of Veterans 
        Affairs.
            ``Special Benefits for Certain World War II Veterans (28-
        0401-0-1-701).

    ``(c) Net Interest.--No reduction of payments for net interest (all 
of major functional category 900) shall be made under any order issued 
under this part.
    ``(d) Refundable Income Tax Credits.--Payments to individuals made 
pursuant to provisions of the Internal Revenue Code of 1986 establishing 
refundable tax credits shall be exempt from reduction under any order 
issued under this part.''.
    (c) Other Programs and Activities, Low-income Programs, and Economic 
Recovery Programs.--Subsections (g) and (h) of section 255 of BBEDCA are 
amended to read as follows:
    ``(g) Other Programs and Activities.--
            ``(1)(A) The following budget accounts and activities shall 
        be exempt from reduction under any order issued under this part:
                    ``Activities resulting from private donations, 
                bequests, or voluntary contributions to the Government.
                    ``Activities financed by voluntary payments to the 
                Government for goods or services to be provided for such 
                payments.
                    ``Administration of Territories, Northern Mariana 
                Islands Covenant grants (14-0412-0-1-808).

[[Page 124 STAT. 24]]

                    ``Advances to the Unemployment Trust Fund and Other 
                Funds (16-0327-0-1-600).
                    ``Black Lung Disability Trust Fund Refinancing (16-
                0329-0-1-601).
                    ``Bonneville Power Administration Fund and borrowing 
                authority established pursuant to section 13 of Public 
                Law 93-454 (1974), as amended (89-4045-0-3-271).
                    ``Claims, Judgments, and Relief Acts (20-1895-0-1-
                808).
                    ``Compact of Free Association (14-0415-0-1-808).
                    ``Compensation of the President (11-0209-01-1-802).
                    ``Comptroller of the Currency, Assessment Funds (20-
                8413-0-8-373).
                    ``Continuing Fund, Southeastern Power Administration 
                (89-5653-0-2-271).
                    ``Continuing Fund, Southwestern Power Administration 
                (89-5649-0-2-271).
                    ``Dual Benefits Payments Account (60-0111-0-1-601).
                    ``Emergency Fund, Western Area Power Administration 
                (89-5069-0-2-271).
                    ``Exchange Stabilization Fund (20-4444-0-3-155).
                    ``Farm Credit Administration Operating Expenses Fund 
                (78-4131-0-3-351).
                    ``Farm Credit System Insurance Corporation, Farm 
                Credit Insurance Fund (78-4171-0-3-351).
                    ``Federal Deposit Insurance Corporation, Deposit 
                Insurance Fund (51-4596-0-4-373).
                    ``Federal Deposit Insurance Corporation, FSLIC 
                Resolution Fund (51-4065-0-3-373).
                    ``Federal Deposit Insurance Corporation, Noninterest 
                Bearing Transaction Account Guarantee (51-4458-0-3-373).
                    ``Federal Deposit Insurance Corporation, Senior 
                Unsecured Debt Guarantee (51-4457-0-3-373).
                    ``Federal Home Loan Mortgage Corporation (Freddie 
                Mac).
                    ``Federal Housing Finance Agency, Administrative 
                Expenses (95-5532-0-2-371).
                    ``Federal National Mortgage Corporation (Fannie 
                Mae).
                    ``Federal Payment to the District of Columbia 
                Judicial Retirement and Survivors Annuity Fund (20-1713-
                0-1-752).
                    ``Federal Payment to the District of Columbia 
                Pension Fund (20-1714-0-1-601).
                    ``Federal Payments to the Railroad Retirement 
                Accounts (60-0113-0-1-601).
                    ``Federal Reserve Bank Reimbursement Fund (20-1884-
                0-1-803).
                    ``Financial Agent Services (20-1802-0-1-803).
                    ``Foreign Military Sales Trust Fund (11-8242-0-7-
                155).
                    ``Hazardous Waste Management, Conservation Reserve 
                Program (12-4336-0-3-999).
                    ``Host Nation Support Fund for Relocation (97-8337-
                0-7-051).
                    ``Internal Revenue Collections for Puerto Rico (20-
                5737-0-2-806).

[[Page 124 STAT. 25]]

                    ``Intragovernmental funds, including those from 
                which the outlays are derived primarily from resources 
                paid in from other government accounts, except to the 
                extent such funds are augmented by direct appropriations 
                for the fiscal year during which an order is in effect.
                    ``Medical Facilities Guarantee and Loan Fund (75-
                9931-0-3-551).
                    ``National Credit Union Administration, Central 
                Liquidity Facility (25-4470-0-3-373).
                    ``National Credit Union Administration, Corporate 
                Credit Union Share Guarantee Program (25-4476-0-3-376).
                    ``National Credit Union Administration, Credit Union 
                Homeowners Affordability Relief Program (25-4473-0-3-
                371).
                    ``National Credit Union Administration, Credit Union 
                Share Insurance Fund (25-4468-0-3-373).
                    ``National Credit Union Administration, Credit Union 
                System Investment Program (25-4474-0-3-376).
                    ``National Credit Union Administration, Operating 
                fund (25-4056-0-3-373).
                    ``National Credit Union Administration, Share 
                Insurance Fund Corporate Debt Guarantee Program (25-
                4469-0-3-376).
                    ``National Credit Union Administration, U.S. Central 
                Federal Credit Union Capital Program (25-4475-0-3-376).
                    ``Office of Thrift Supervision (20-4108-0-3-373).
                    ``Panama Canal Commission Compensation Fund (16-
                5155-0-2-602).
                    ``Payment of Vietnam and USS Pueblo prisoner-of-war 
                claims within the Salaries and Expenses, Foreign Claims 
                Settlement account (15-0100-0-1-153).
                    ``Payment to Civil Service Retirement and Disability 
                Fund (24-0200-0-1-805).
                    ``Payment to Department of Defense Medicare-Eligible 
                Retiree Health Care Fund (97-0850-0-1-054).
                    ``Payment to Judiciary Trust Funds (10-0941-0-1-
                752).
                    ``Payment to Military Retirement Fund (97-0040-0-1-
                054).
                    ``Payment to the Foreign Service Retirement and 
                Disability Fund (19-0540-0-1-153).
                    ``Payments to Copyright Owners (03-5175-0-2-376).
                    ``Payments to Health Care Trust Funds (75-0580-0-1-
                571).
                    ``Payment to Radiation Exposure Compensation Trust 
                Fund (15-0333-0-1-054).
                    ``Payments to Social Security Trust Funds (28-0404-
                0-1-651).
                    ``Payments to the United States Territories, Fiscal 
                Assistance (14-0418-0-1-806).
                    ``Payments to trust funds from excise taxes or other 
                receipts properly creditable to such trust funds.
                    ``Payments to widows and heirs of deceased Members 
                of Congress (00-0215-0-1-801).
                    ``Postal Service Fund (18-4020-0-3-372).

[[Page 124 STAT. 26]]

                    ``Radiation Exposure Compensation Trust Fund (15-
                8116-0-1-054).
                    ``Reimbursement to Federal Reserve Banks (20-0562-0-
                1-803).
                    ``Salaries of Article III judges.
                    ``Soldiers and Airmen's Home, payment of claims (84-
                8930-0-7-705).
                    ``Tennessee Valley Authority Fund, except nonpower 
                programs and activities (64-4110-0-3-999).
                    ``Tribal and Indian trust accounts within the 
                Department of the Interior which fund prior legal 
                obligations of the Government or which are established 
                pursuant to Acts of Congress regarding Federal 
                management of tribal real property or other fiduciary 
                responsibilities, including but not limited to Tribal 
                Special Fund (14-5265-0-2-452), Tribal Trust Fund (14-
                8030-0-7-452), White Earth Settlement (14-2204-0-1-452), 
                and Indian Water Rights and Habitat Acquisition (14-
                5505-0-2-303).
                    ``United Mine Workers of America 1992 Benefit Plan 
                (95-8260-0-7-551).
                    ``United Mine Workers of America 1993 Benefit Plan 
                (95-8535-0-7-551).
                    ``United Mine Workers of America Combined Benefit 
                Fund (95-8295-0-7-551).
                    ``United States Enrichment Corporation Fund (95-
                4054-0-3-271).
                    ``Universal Service Fund (27-5183-0-2-376).
                    ``Vaccine Injury Compensation (75-0320-0-1-551).
                    ``Vaccine Injury Compensation Program Trust Fund 
                (20-8175-0-7-551).
            ``(B) The following Federal retirement and disability 
        accounts and activities shall be exempt from reduction under any 
        order issued under this part:
                    ``Black Lung Disability Trust Fund (20-8144-0-7-
                601).
                    ``Central Intelligence Agency Retirement and 
                Disability System Fund (56-3400-0-1-054).
                    ``Civil Service Retirement and Disability Fund (24-
                8135-0-7-602).
                    ``Comptrollers general retirement system (05-0107-0-
                1-801).
                    ``Contributions to U.S. Park Police annuity 
                benefits, Other Permanent Appropriations (14-9924-0-2-
                303).
                    ``Court of Appeals for Veterans Claims Retirement 
                Fund (95-8290-0-7-705).
                    ``Department of Defense Medicare-Eligible Retiree 
                Health Care Fund (97-5472-0-2-551).
                    ``District of Columbia Federal Pension Fund (20-
                5511-0-2-601).
                    ``District of Columbia Judicial Retirement and 
                Survivors Annuity Fund (20-8212-0-7-602).
                    ``Energy Employees Occupational Illness Compensation 
                Fund (16-1523-0-1-053).
                    ``Foreign National Employees Separation Pay (97-
                8165-0-7-051).
                    ``Foreign Service National Defined Contributions 
                Retirement Fund (19-5497-0-2-602).

[[Page 124 STAT. 27]]

                    ``Foreign Service National Separation Liability 
                Trust Fund (19-8340-0-7-602).
                    ``Foreign Service Retirement and Disability Fund 
                (19-8186-0-7-602).
                    ``Government Payment for Annuitants, Employees 
                Health Benefits (24-0206-0-1-551).
                    ``Government Payment for Annuitants, Employee Life 
                Insurance (24-0500-0-1-602).
                    ``Judicial Officers' Retirement Fund (10-8122-0-7-
                602).
                    ``Judicial Survivors' Annuities Fund (10-8110-0-7-
                602).
                    ``Military Retirement Fund (97-8097-0-7-602).
                    ``National Railroad Retirement Investment Trust (60-
                8118-0-7-601).
                    ``National Oceanic and Atmospheric Administration 
                retirement (13-1450-0-1-306).
                    ``Pensions for former Presidents (47-0105-0-1-802).
                    ``Postal Service Retiree Health Benefits Fund (24-
                5391-0-2-551).
                    ``Public Safety Officer Benefits (15-0403-0-1-754).
                    ``Rail Industry Pension Fund (60-8011-0-7-601).
                    ``Retired Pay, Coast Guard (70-0602-0-1-403).
                    ``Retirement Pay and Medical Benefits for 
                Commissioned Officers, Public Health Service (75-0379-0-
                1-551).
                    ``Special Benefits for Disabled Coal Miners (16-
                0169-0-1-601).
                    ``Special Benefits, Federal Employees' Compensation 
                Act (16-1521-0-1-600).
                    ``Special Workers Compensation Expenses (16-9971-0-
                7-601).
                    ``Tax Court Judges Survivors Annuity Fund (23-8115-
                0-7-602).
                    ``United States Court of Federal Claims Judges' 
                Retirement Fund (10-8124-0-7-602).
                    ``United States Secret Service, DC Annuity (70-0400-
                0-1-751).
                    ``Voluntary Separation Incentive Fund (97-8335-0-7-
                051).
            ``(2) Prior legal obligations of the Government in the 
        following budget accounts and activities shall be exempt from 
        any order issued under this part:
                    ``Biomass Energy Development (20-0114-0-1-271).
                    ``Check Forgery Insurance Fund (20-4109-0-3-803).
                    ``Credit liquidating accounts.
                    ``Credit reestimates.
                    ``Employees Life Insurance Fund (24-8424-0-8-602).
                    ``Federal Aviation Insurance Revolving Fund (69-
                4120-0-3-402).
                    ``Federal Crop Insurance Corporation Fund (12-4085-
                0-3-351).
                    ``Federal Emergency Management Agency, National 
                Flood Insurance Fund (58-4236-0-3-453).
                    ``Geothermal resources development fund (89-0206-0-
                1-271).
                    ``Low-Rent Public Housing--Loans and Other Expenses 
                (86-4098-0-3-604).

[[Page 124 STAT. 28]]

                    ``Maritime Administration, War Risk Insurance 
                Revolving Fund (69-4302-0-3-403).
                    ``Natural Resource Damage Assessment Fund (14-1618-
                0-1-302).
                    ``Overseas Private Investment Corporation, Noncredit 
                Account (71-4184-0-3-151).
                    ``Pension Benefit Guaranty Corporation Fund (16-
                4204-0-3-601).
                    ``San Joaquin Restoration Fund (14-5537-0-2-301).
                    ``Servicemembers' Group Life Insurance Fund (36-
                4009-0-3-701).
                    ``Terrorism Insurance Program (20-0123-0-1-376).

    ``(h) Low-income Programs.--The following programs shall be exempt 
from reduction under any order issued under this part:
            ``Academic Competitiveness/Smart Grant Program (91-0205-0-1-
        502).
            ``Child Care Entitlement to States (75-1550-0-1-609).
            ``Child Enrollment Contingency Fund (75-5551-0-2-551).
            ``Child Nutrition Programs (with the exception of special 
        milk programs) (12-3539-0-1-605).
            ``Children's Health Insurance Fund (75-0515-0-1-551).
            ``Commodity Supplemental Food Program (12-3507-0-1-605).
            ``Contingency Fund (75-1522-0-1-609).
            ``Family Support Programs (75-1501-0-1-609).
            ``Federal Pell Grants under section 401 Title IV of the 
        Higher Education Act.
            ``Grants to States for Medicaid (75-0512-0-1-551).
            ``Payments for Foster Care and Permanency (75-1545-0-1-609).
            ``Supplemental Nutrition Assistance Program (12-3505-0-1-
        605).
            ``Supplemental Security Income Program (28-0406-0-1-609).
            ``Temporary Assistance for Needy Families (75-1552-0-1-
        609).''.

    (d) Additional Excluded Programs.--Section 255 of <<NOTE: 2 USC 
905.>> BBEDCA is amended by adding the following after subsection (h):

    ``(i) Economic Recovery Programs.--The following programs shall be 
exempt from reduction under any order issued under this part:
            ``GSE Preferred Stock Purchase Agreements (20-0125-0-1-371).
            ``Office of Financial Stability (20-0128-0-1-376).
            ``Special Inspector General for the Troubled Asset Relief 
        Program (20-0133-0-1-376).

    ``(j) Split Treatment Programs.--Each of the following programs 
shall be exempt from any order under this part to the extent that the 
budgetary resources of such programs are subject to obligation 
limitations in appropriations bills:

    ``Federal-Aid Highways (69-8083-0-7-401).
    ``Highway Traffic Safety Grants (69-8020-0-7-401).
    ``Operations and Research NHTSA and National Driver Register (69-
8016-0-7-401).
    ``Motor Carrier Safety Operations and Programs (69-8159-0-7-401).
    ``Motor Carrier Safety Grants (69-8158-0-7-401).

[[Page 124 STAT. 29]]

    ``Formula and Bus Grants (69-8350-0-7-401).
    ``Grants-In-Aid for Airports (69-8106-0-7-402).''.

SEC. 12. <<NOTE: 2 USC 938.>> DETERMINATIONS AND POINTS OF ORDER.

    Nothing in this title shall be construed as limiting the authority 
of the chairmen of the Committees on the Budget of the House and Senate 
under section 312 of the Congressional Budget Act of 1974. CBO may 
consult with the Chairmen of the House and Senate Budget Committees to 
resolve any ambiguities in this title.

SEC. 13. <<NOTE: 2 USC 939.>> LIMITATION ON CHANGES TO THE SOCIAL 
            SECURITY ACT.

    (a) Limitation on Changes to the Social Security Act.--
Notwithstanding any other provision of law, it shall not be in order in 
the Senate or the House of Representatives to consider any bill or 
resolution pursuant to any expedited procedure to consider the 
recommendations of a Task Force for Responsible Fiscal Action or other 
commission that contains recommendations with respect to the old-age, 
survivors, and disability insurance program established under title II 
of the Social Security Act, or the taxes received under subchapter A of 
chapter 9; the taxes imposed by subchapter E of chapter 1; and the taxes 
collected under section 86 of part II of subchapter B of chapter 1 of 
the Internal Revenue Code.
    (b) Waiver.--This section may be waived or suspended in the Senate 
only by the affirmative vote of three-fifths of the Members, duly chosen 
and sworn.
    (c) Appeals.--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 this section.

       TITLE II--ELIMINATION OF DUPLICATIVE AND WASTEFUL SPENDING

SEC. 21. <<NOTE: 31 USC 712 note.>> IDENTIFICATION, CONSOLIDATION, AND 
            ELIMINATION OF DUPLICATIVE GOVERNMENT PROGRAMS.

     <<NOTE: Investigations. Reports. Deadline.>> 

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