Text: S.365 — 112th Congress (2011-2012)All Bill Information (Except Text)

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Public Law No: 112-25 (08/02/2011)

 
[112th Congress Public Law 25]
[From the U.S. Government Printing Office]



[[Page 239]]

                       BUDGET CONTROL ACT OF 2011

[[Page 125 STAT. 240]]

Public Law 112-25
112th Congress

                                 An Act


 
   To provide for budget control. <<NOTE: Aug. 2, 2011 -  [S. 365]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Budget Control 
Act of 2011.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This <<NOTE: 2 USC 900 note.>> Act may be cited as 
the ``Budget Control Act of 2011''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Severability.

           TITLE I--TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

Sec. 101. Enforcing discretionary spending limits.
Sec. 102. Definitions.
Sec. 103. Reports and orders.
Sec. 104. Expiration.
Sec. 105. Amendments to the Congressional Budget and Impoundment Control 
           Act of 1974.
Sec. 106. Senate budget enforcement.

             TITLE II--VOTE ON THE BALANCED BUDGET AMENDMENT

Sec. 201. Vote on the balanced budget amendment.
Sec. 202. Consideration by the other House.

               TITLE III--DEBT CEILING DISAPPROVAL PROCESS

Sec. 301. Debt ceiling disapproval process.
Sec. 302. Enforcement of budget goal.

          TITLE IV--JOINT SELECT COMMITTEE ON DEFICIT REDUCTION

Sec. 401. Establishment of Joint Select Committee.
Sec. 402. Expedited consideration of joint committee recommendations.
Sec. 403. Funding.
Sec. 404. Rulemaking.

          TITLE V--PELL GRANT AND STUDENT LOAN PROGRAM CHANGES

Sec. 501. Federal Pell grants.
Sec. 502. Termination of authority to make interest subsidized loans to 
           graduate and professional students.
Sec. 503. Termination of direct loan repayment incentives.
Sec. 504. Inapplicability of title IV negotiated rulemaking and master 
           calendar exception.

SEC. 2. <<NOTE: 2 USC 900 note.>> SEVERABILITY.

    If any provision of this Act, or any application of such provision 
to any person or circumstance, is held to be unconstitutional, the 
remainder of this Act and the application of this Act to any other 
person or circumstance shall not be affected.

[[Page 125 STAT. 241]]

           TITLE I--TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

SEC. 101. ENFORCING DISCRETIONARY SPENDING LIMITS.

    Section 251 of the Balanced Budget and Emergency Deficit Control Act 
of 1985 <<NOTE: 2 USC 901.>>  is amended to read as follows:
``SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS.

    ``(a) Enforcement.--
            ``(1) Sequestration.--Within <<NOTE: Deadline.>> 15 calendar 
        days after Congress adjourns to end a session 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 enacted level of sequestrable budgetary 
        resources in that account at that time by the uniform percentage 
        necessary to eliminate a breach within that category.
            ``(3) Military personnel.--If the President uses the 
        authority to exempt any personnel account from sequestration 
        under section 255(f), each account within subfunctional category 
        051 (other than those military personnel accounts for which the 
        authority provided under section 255(f) 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 for that account.
            ``(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 <<NOTE: Deadline.>> 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.--

[[Page 125 STAT. 242]]

                    ``(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 <<NOTE: Deadline. Reports.>> 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 <<NOTE: Consultation.>> 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 the 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 
                Committees on the Budget of the House of Representatives 
                and the Senate, CBO, and OMB.
                    ``(D) Annual appropriations.--For purposes of this 
                paragraph, amounts provided by annual appropriations 
                shall include any discretionary appropriations 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) Concepts and definitions.--When the President submits 
        the budget under section 1105 of title 31, United States Code, 
        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 
        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.

[[Page 125 STAT. 243]]

            ``(2) Sequestration reports.--When OMB submits a 
        sequestration report under section 254(e), (f), or (g) 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, United States Code, 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; overseas contingency 
                operations/global war on terrorism.--If, for any fiscal 
                year, appropriations for discretionary accounts are 
                enacted that--
                          ``(i) the Congress designates as emergency 
                      requirements in statute on an account by account 
                      basis and the President subsequently so 
                      designates, or
                          ``(ii) the Congress designates for Overseas 
                      Contingency Operations/Global War on Terrorism in 
                      statute on an account by account basis and the 
                      President subsequently so designates,
                the adjustment shall be the total of such appropriations 
                in discretionary accounts designated as emergency 
                requirements or for Overseas Contingency Operations/
                Global War on Terrorism, as applicable.
                    ``(B) Continuing disability reviews and 
                redeterminations.--(i) If a bill or joint resolution 
                making appropriations for a fiscal year is enacted that 
                specifies an amount for continuing disability reviews 
                under titles II and XVI of the Social Security Act and 
                for the cost associated with conducting redeterminations 
                of eligibility under title XVI of the Social Security 
                Act, then the adjustments for that fiscal year shall be 
                the additional new budget authority provided in that Act 
                for such expenses for that fiscal year, but shall not 
                exceed--
                          ``(I) for fiscal year 2012, $623,000,000 in 
                      additional new budget authority;
                          ``(II) for fiscal year 2013, $751,000,000 in 
                      additional new budget authority;
                          ``(III) for fiscal year 2014, $924,000,000 in 
                      additional new budget authority;
                          ``(IV) for fiscal year 2015, $1,123,000,000 in 
                      additional new budget authority;
                          ``(V) for fiscal year 2016, $1,166,000,000 in 
                      additional new budget authority;
                          ``(VI) for fiscal year 2017, $1,309,000,000 in 
                      additional new budget authority;
                          ``(VII) for fiscal year 2018, $1,309,000,000 
                      in additional new budget authority;
                          ``(VIII) for fiscal year 2019, $1,309,000,000 
                      in additional new budget authority;
                          ``(IX) for fiscal year 2020, $1,309,000,000 in 
                      additional new budget authority; and
                          ``(X) for fiscal year 2021, $1,309,000,000 in 
                      additional new budget authority.
                    ``(ii) <<NOTE: Definitions.>> As used in this 
                subparagraph--
                          ``(I) the term `continuing disability reviews' 
                      means continuing disability reviews under sections 
                      221(i) and 1614(a)(4) of the Social Security Act;

[[Page 125 STAT. 244]]

                          ``(II) the term `redetermination' means 
                      redetermination of eligibility under sections 
                      1611(c)(1) and 1614(a)(3)(H) of the Social 
                      Security Act; and
                          ``(III) the term `additional new budget 
                      authority' means the amount provided for a fiscal 
                      year, in excess of $273,000,000, in an 
                      appropriation Act and specified to pay for the 
                      costs of continuing disability reviews and 
                      redeterminations under the heading `Limitation on 
                      Administrative Expenses' for the Social Security 
                      Administration.
                    ``(C) Health care fraud and abuse control.--(i) If a 
                bill or joint resolution making appropriations for a 
                fiscal year is enacted that specifies an amount for the 
                health care fraud abuse control program at the 
                Department of Health and Human Services (75-8393-0-7-
                571), then the adjustments for that fiscal year shall be 
                the amount of additional new budget authority provided 
                in that Act for such program for that fiscal year, but 
                shall not exceed--
                          ``(I) for fiscal year 2012, $270,000,000 in 
                      additional new budget authority;
                          ``(II) for fiscal year 2013, $299,000,000 in 
                      additional new budget authority;
                          ``(III) for fiscal year 2014, $329,000,000 in 
                      additional new budget authority;
                          ``(IV) for fiscal year 2015, $361,000,000 in 
                      additional new budget authority;
                          ``(V) for fiscal year 2016, $395,000,000 in 
                      additional new budget authority;
                          ``(VI) for fiscal year 2017, $414,000,000 in 
                      additional new budget authority;
                          ``(VII) for fiscal year 2018, $434,000,000 in 
                      additional new budget authority;
                          ``(VIII) for fiscal year 2019, $454,000,000 in 
                      additional new budget authority;
                          ``(IX) for fiscal year 2020, $475,000,000 in 
                      additional new budget authority; and
                          ``(X) for fiscal year 2021, $496,000,000 in 
                      additional new budget authority.
                    ``(ii) <<NOTE: Definition.>> As used in this 
                subparagraph, the term `additional new budget authority' 
                means the amount provided for a fiscal year, in excess 
                of $311,000,000, in an appropriation Act and specified 
                to pay for the costs of the health care fraud and abuse 
                control program.
                    ``(D) Disaster funding.--
                          ``(i) If, for fiscal years 2012 through 2021, 
                      appropriations for discretionary accounts are 
                      enacted that Congress designates as being for 
                      disaster relief in statute, the adjustment for a 
                      fiscal year shall be the total of such 
                      appropriations for the fiscal year in 
                      discretionary accounts designated as being for 
                      disaster relief, but not to exceed the total of--
                                    ``(I) the average funding provided 
                                for disaster relief over the previous 10 
                                years, excluding the highest and lowest 
                                years; and
                                    ``(II) the amount, for years when 
                                the enacted new discretionary budget 
                                authority designated as being for 
                                disaster relief for the preceding fiscal

[[Page 125 STAT. 245]]

                                year was less than the average as 
                                calculated in subclause (I) for that 
                                fiscal year, that is the difference 
                                between the enacted amount and the 
                                allowable adjustment as calculated in 
                                such subclause for that fiscal year.
                          ``(ii) OMB shall report to the Committees on 
                      Appropriations and Budget in each House the 
                      average calculated pursuant to clause (i)(II), not 
                      later than 30 days after the date of the enactment 
                      of the Budget Control Act of 2011.
                          ``(iii) <<NOTE: Definition.>> For the purposes 
                      of this subparagraph, the term `disaster relief' 
                      means activities carried out pursuant to a 
                      determination under section 102(2) of the Robert 
                      T. Stafford Disaster Relief and Emergency 
                      Assistance Act (42 U.S.C. 5122(2)).
                          ``(iv) Appropriations considered disaster 
                      relief under this subparagraph in a fiscal year 
                      shall not be eligible for adjustments under 
                      subparagraph (A) for the fiscal year.

    ``(c) Discretionary Spending Limit.--As <<NOTE: Definition.>> used 
in this part, the term `discretionary spending limit' means--
            ``(1) with respect to fiscal year 2012--
                    ``(A) for the security category, $684,000,000,000 in 
                new budget authority; and
                    ``(B) for the nonsecurity category, $359,000,000,000 
                in new budget authority;
            ``(2) with respect to fiscal year 2013--
                    ``(A) for the security category, $686,000,000,000 in 
                new budget authority; and
                    ``(B) for the nonsecurity category, $361,000,000,000 
                in new budget authority;
            ``(3) with respect to fiscal year 2014, for the 
        discretionary category, $1,066,000,000,000 in new budget 
        authority;
            ``(4) with respect to fiscal year 2015, for the 
        discretionary category, $1,086,000,000,000 in new budget 
        authority;
            ``(5) with respect to fiscal year 2016, for the 
        discretionary category, $1,107,000,000,000 in new budget 
        authority;
            ``(6) with respect to fiscal year 2017, for the 
        discretionary category, $1,131,000,000,000 in new budget 
        authority;
            ``(7) with respect to fiscal year 2018, for the 
        discretionary category, $1,156,000,000,000 in new budget 
        authority;
            ``(8) with respect to fiscal year 2019, for the 
        discretionary category, $1,182,000,000,000 in new budget 
        authority;
            ``(9) with respect to fiscal year 2020, for the 
        discretionary category, $1,208,000,000,000 in new budget 
        authority; and
            ``(10) with respect to fiscal year 2021, for the 
        discretionary category, $1,234,000,000,000 in new budget 
        authority;

as adjusted in strict conformance with subsection (b).''.
SEC. 102. DEFINITIONS.

    Section 250(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 <<NOTE: 2 USC 900.>> is amended as follows:
            (1) Strike paragraph (4) and insert the following new 
        paragraph:
            ``(4)(A) The term `nonsecurity category' means all 
        discretionary appropriations not included in the security 
        category defined in subparagraph (B).

[[Page 125 STAT. 246]]

            ``(B) The term `security category' includes discretionary 
        appropriations associated with agency budgets for the Department 
        of Defense, the Department of Homeland Security, the Department 
        of Veterans Affairs, the National Nuclear Security 
        Administration, the intelligence community management account 
        (95-0401-0-1-054), and all budget accounts in budget function 
        150 (international affairs).
            ``(C) The term `discretionary category' includes all 
        discretionary appropriations.''.
            (2) In paragraph (8)(C), strike ``the food stamp program'' 
        and insert ``the Supplemental Nutrition Assistance Program''.
            (3) Strike paragraph (14) and insert the following new 
        paragraph:
            ``(14) The term `outyear' means a fiscal year one or more 
        years after the budget year.''.
            (4) At the end, add the following new paragraphs:
            ``(20) The term `emergency' means a situation that--
                    ``(A) requires new budget authority and outlays (or 
                new budget authority and the outlays flowing therefrom) 
                for the prevention or mitigation of, or response to, 
                loss of life or property, or a threat to national 
                security; and
                    ``(B) is unanticipated.
            ``(21) The term `unanticipated' means that the underlying 
        situation is--
                    ``(A) sudden, which means quickly coming into being 
                or not building up over time;
                    ``(B) urgent, which means a pressing and compelling 
                need requiring immediate action;
                    ``(C) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                    ``(D) temporary, which means not of a permanent 
                duration.''.
SEC. 103. REPORTS AND ORDERS.

    Section 254 of the Balanced Budget and Emergency Deficit Control Act 
of 1985 <<NOTE: 2 USC 904.>> is amended as follows:
            (1) In subsection (c)(2), strike ``2002'' and insert 
        ``2021''.
            (2) At the end of subsection (e), insert ``This report shall 
        also contain a preview estimate of the adjustment for disaster 
        funding for the upcoming fiscal year.''.
            (3) In subsection (f)(2)(A), strike ``2002'' and insert 
        ``2021''; before the concluding period insert ``, including a 
        final estimate of the adjustment for disaster funding''.
SEC. 104. EXPIRATION.

    (a) Repealer.--Section 275 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 <<NOTE: 2 USC 900 note.>> is repealed.

    (b) Conforming Change.--Sections <<NOTE: 2 USC 902 
note.>> 252(d)(1), 254(c), 254(f)(3), and 254(i) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 shall not apply to the 
Congressional Budget Office.
SEC. 105. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT 
                        CONTROL ACT OF 1974.

    (a) Adjustments.--Section 314 of the Congressional Budget Act of 
1974 <<NOTE: 2 USC 645.>> is amended as follows:
            (1) Strike subsection (a) and insert the following:

    ``(a) Adjustments.--After the reporting of a bill or joint 
resolution or the offering of an amendment thereto or the submission

[[Page 125 STAT. 247]]

of a conference report thereon, the chairman of the Committee on the 
Budget of the House of Representatives or the Senate may make 
appropriate budgetary adjustments of new budget authority and the 
outlays flowing therefrom in the same amount as required by section 
251(b) of the Balanced Budget and Emergency Deficit Control Act of 
1985.''.
            (2) Strike subsections (b) and (e) and redesignate 
        subsections (c) and (d) as subsections (b) and (c), 
        respectively.
            (3) At the end, add the following new subsections:

    ``(d) Emergencies in the House of Representatives.-- (1) In the 
House of Representatives, if a reported bill or joint resolution, or 
amendment thereto or conference report thereon, contains a provision 
providing new budget authority and outlays or reducing revenue, and a 
designation of such provision as an emergency requirement pursuant to 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985, the chair of the Committee on the Budget of the House of 
Representatives shall not count the budgetary effects of such provision 
for purposes of title III and title IV of the Congressional Budget Act 
of 1974 and the Rules of the House of Representatives.
    ``(2)(A) In the House of Representatives, if a reported bill or 
joint resolution, or amendment thereto or conference report thereon, 
contains a provision providing new budget authority and outlays or 
reducing revenue, and a designation of such provision as an emergency 
pursuant to paragraph (1), the chair of the Committee on the Budget 
shall not count the budgetary effects of such provision for purposes of 
this title and title IV and the Rules of the House of Representatives.
    ``(B) In the House of Representatives, a proposal to strike a 
designation under subparagraph (A) shall be excluded from an evaluation 
of budgetary effects for purposes of this title and title IV and the 
Rules of the House of Representatives.
    ``(C) An amendment offered under subparagraph (B) that also proposes 
to reduce each amount appropriated or otherwise made available by the 
pending measure that is not required to be appropriated or otherwise 
made available shall be in order at any point in the reading of the 
pending measure.
    ``(e) Enforcement of Discretionary Spending Caps.--It shall not be 
in order in the House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, motion, or conference report that 
would cause the discretionary spending limits as set forth in section 
251 of the Balanced Budget and Emergency Deficit Control Act to be 
exceeded.''.
    (b) Definitions.--Section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 <<NOTE: 2 USC 622.>> is amended by 
adding at the end the following new paragraph:
            ``(11) The terms `emergency' and `unanticipated' have the 
        meanings given to such terms in section 250(c) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.''.

    (c) Appeals for Discretionary Caps.--Section 904(c)(2) of the 
Congressional Budget Act of 1974 <<NOTE: 2 USC 621 note.>> is amended by 
striking ``and 312(c)'' and inserting ``312(c), and 314(e)''.
SEC. 106. <<NOTE: 2 USC 631 note.>> SENATE BUDGET ENFORCEMENT.

    (a) <<NOTE: Applicability.>>  In General.--
            (1) For the purpose of enforcing the Congressional Budget 
        Act of 1974 through April 15, 2012, including section 300 of

[[Page 125 STAT. 248]]

        that Act, and enforcing budgetary points of order in prior 
        concurrent resolutions on the budget, the allocations, 
        aggregates, and levels set in subsection (b)(1) shall apply in 
        the Senate in the same manner as for a concurrent resolution on 
        the budget for fiscal year 2012 with appropriate budgetary 
        levels for fiscal years 2011 and 2013 through 2021.
            (2) For the purpose of enforcing the Congressional Budget 
        Act of 1974 after April 15, 2012, including section 300 of that 
        Act, and enforcing budgetary points of order in prior concurrent 
        resolutions on the budget, the allocations, aggregates, and 
        levels set in subsection (b)(2) shall apply in the Senate in the 
        same manner as for a concurrent resolution on the budget for 
        fiscal year 2013 with appropriate budgetary levels for fiscal 
        years 2012 and 2014 through 2022.

    (b) Committee Allocations, Aggregates, and Levels.--
            (1) As soon as practicable after the date of enactment of 
        this section, the Chairman of the Committee on the Budget shall 
        file--
                    (A) for the Committee on Appropriations, committee 
                allocations for fiscal years 2011 and 2012 consistent 
                with the discretionary spending limits set forth in this 
                Act for the purpose of enforcing section 302 of the 
                Congressional Budget Act of 1974;
                    (B) for all committees other than the Committee on 
                Appropriations, committee allocations for fiscal years 
                2011, 2012, 2012 through 2016, and 2012 through 2021 
                consistent with the Congressional Budget Office's March 
                2011 baseline adjusted to account for the budgetary 
                effects of this Act and legislation enacted prior to 
                this Act but not included in the Congressional Budget 
                Office's March 2011 baseline, for the purpose of 
                enforcing section 302 of the Congressional Budget Act of 
                1974;
                    (C) aggregate spending levels for fiscal years 2011 
                and 2012 and aggregate revenue levels for fiscal years 
                2011, 2012, 2012 through 2016, 2012 through 2021 
                consistent with the Congressional Budget Office's March 
                2011 baseline adjusted to account for the budgetary 
                effects of this Act and legislation enacted prior to 
                this Act but not included in the Congressional Budget 
                Office's March 2011 baseline, and the discretionary 
                spending limits set forth in this Act for the purpose of 
                enforcing section 311 of the Congressional Budget Act of 
                1974; and
                    (D) levels of Social Security revenues and outlays 
                for fiscal years 2011, 2012, 2012 through 2016, and 2012 
                through 2021 consistent with the Congressional Budget 
                Office's March 2011 baseline adjusted to account for the 
                budgetary effects of this Act and legislation enacted 
                prior to this Act but not included in the Congressional 
                Budget Office's March 2011 baseline, for the purpose of 
                enforcing sections 302 and 311 of the Congressional 
                Budget Act of 1974.
            (2) <<NOTE: Deadline.>> Not later than April 15, 2012, the 
        Chairman of the Committee on the Budget shall file--
                    (A) for the Committee on Appropriations, committee 
                allocations for fiscal years 2012 and 2013 consistent 
                with the discretionary spending limits set forth in this 
                Act for

[[Page 125 STAT. 249]]

                the purpose of enforcing section 302 of the 
                Congressional Budget Act of 1974;
                    (B) for all committees other than the Committee on 
                Appropriations, committee allocations for fiscal years 
                2012, 2013, 2013 through 2017, and 2013 through 2022 
                consistent with the Congressional Budget Office's March 
                2012 baseline for the purpose of enforcing section 302 
                of the Congressional Budget Act of 1974;
                    (C) aggregate spending levels for fiscal years 2012 
                and 2013 and aggregate revenue levels for fiscal years 
                2012, 2013, 2013-2017, and 2013-2022 consistent with the 
                Congressional Budget Office's March 2012 baseline and 
                the discretionary spending limits set forth in this Act 
                for the purpose of enforcing section 311 of the 
                Congressional Budget Act of 1974; and
                    (D) levels of Social Security revenues and outlays 
                for fiscal years 2012 and 2013, 2013-2017, and 2013-2022 
                consistent with the Congressional Budget Office's March 
                2012 baseline budget for the purpose of enforcing 
                sections 302 and 311 of the Congressional Budget Act of 
                1974.

    (c) Senate Pay-as-you-go Scorecard.--
            (1) <<NOTE: Effective date.>> Effective on the date of 
        enactment of this section, for the purpose of enforcing section 
        201 of S. Con. Res. 21 (110th Congress), the Chairman of the 
        Senate Committee on the Budget shall reduce any balances of 
        direct spending and revenues for any fiscal year to 0 (zero).
            (2) <<NOTE: Deadline.>> Not later than April 15, 2012, for 
        the purpose of enforcing section 201 of S. Con. Res. 21 (110th 
        Congress), the Chairman of the Senate Committee on the Budget 
        shall reduce any balances of direct spending and revenues for 
        any fiscal year to 0 (zero).
            (3) <<NOTE: Notification. Congressional Record.>> Upon 
        resetting the Senate paygo scorecard pursuant to paragraph (2), 
        the Chairman shall publish a notification of such action in the 
        Congressional Record.

    (d) Further Adjustments.--
            (1) The Chairman of the Committee on the Budget of the 
        Senate may revise any allocations, aggregates, or levels set 
        pursuant to this section to account for any subsequent 
        adjustments to discretionary spending limits made pursuant to 
        this Act.
            (2) With respect to any allocations, aggregates, or levels 
        set or adjustments made pursuant to this section, sections 412 
        through 414 of S. Con. Res. 13 (111th Congress) shall remain in 
        effect.

    (e) Expiration.--
            (1) Subsections (a)(1), (b)(1), and (c)(1) shall expire if a 
        concurrent resolution on the budget for fiscal year 2012 is 
        agreed to by the Senate and House of Representatives pursuant to 
        section 301 of the Congressional Budget Act of 1974.
            (2) Subsections (a)(2), (b)(2), and (c)(2) shall expire if a 
        concurrent resolution on the budget for fiscal year 2013 is 
        agreed to by the Senate and House of Representatives pursuant to 
        section 301 of the Congressional Budget Act of 1974.

[[Page 125 STAT. 250]]

             TITLE II--VOTE ON THE BALANCED BUDGET AMENDMENT

SEC. 201. VOTE ON THE BALANCED BUDGET AMENDMENT.

    After <<NOTE: Time period.>> September 30, 2011, and not later than 
December 31, 2011, the House of Representatives and Senate, 
respectively, shall vote on passage of a joint resolution, the title of 
which is as follows: ``Joint resolution proposing a balanced budget 
amendment to the Constitution of the United States.''.
SEC. 202. CONSIDERATION BY THE OTHER HOUSE.

    (a) House Consideration.--
            (1) Referral.--If the <<NOTE: Deadline.>> House receives a 
        joint resolution described in section 201 from the Senate, such 
        joint resolution shall be referred to the Committee on the 
        Judiciary. If the committee fails to report the joint resolution 
        within five legislative days, it shall be in order to move that 
        the House discharge the committee from further consideration of 
        the joint resolution. Such a motion shall not be in order after 
        the House has disposed of a motion to discharge the joint 
        resolution. The previous question shall be considered as ordered 
        on the motion to its adoption without intervening motion except 
        twenty minutes of debate equally divided and controlled by the 
        proponent and an opponent. If such a motion is adopted, the 
        House shall proceed immediately to consider the joint resolution 
        in accordance with paragraph (3). A motion to reconsider the 
        vote by which the motion is disposed of shall not be in order.
            (2) Proceeding to consideration.--After the joint resolution 
        has been referred to the appropriate calendar or the committee 
        has been discharged (other than by motion) from its 
        consideration, it shall be in order to move to proceed to 
        consider the joint resolution in the House. Such a motion shall 
        not be in order after the House has disposed of a motion to 
        proceed with respect to the joint resolution. The previous 
        question shall be considered as ordered on the motion to its 
        adoption without intervening motion. A motion to reconsider the 
        vote by which the motion is disposed of shall not be in order.
            (3) Consideration.--The joint resolution shall be considered 
        as read. All points of order against the joint resolution and 
        against its consideration are waived. The previous question 
        shall be considered as ordered on the joint resolution to its 
        passage without intervening motion except two hours of debate 
        equally divided and controlled by the proponent and an opponent 
        and one motion to limit debate on the joint resolution. A motion 
        to reconsider the vote on passage of the joint resolution shall 
        not be in order.

    (b) Senate Consideration.--(1) If the <<NOTE: Deadline.>> Senate 
receives a joint resolution described in section 201 from the House of 
Representatives, such joint resolution shall be referred to the 
appropriate committee of the Senate. If such committee has not reported 
the joint resolution at the close of the fifth session day after its 
receipt by the Senate, such committee shall be automatically discharged 
from further consideration of the joint resolution and it shall be 
placed on the appropriate calendar.

    (2) Consideration of the joint resolution and on all debatable 
motions and appeals in connection therewith, shall be limited to

[[Page 125 STAT. 251]]

not more than 20 hours, which shall be divided equally between the 
majority and minority leaders or their designees. A motion further to 
limit debate is in order and not debatable. An amendment to, or a motion 
to postpone, or a motion to proceed to the consideration of other 
business, or a motion to recommit the joint resolution is not in order. 
Any debatable motion or appeal is debatable for not to exceed 1 hour, to 
be divided equally between those favoring and those opposing the motion 
or appeal. All time used for consideration of the joint resolution, 
including time used for quorum calls and voting, shall be counted 
against the total 20 hours of consideration.
    (3) If the <<NOTE: Deadline.>> Senate has voted to proceed to a 
joint resolution, the vote on passage of the joint resolution shall be 
taken on or before the close of the seventh session day after such joint 
resolution has been reported or discharged or immediately following the 
conclusion of consideration of the joint resolution, and a single quorum 
call at the conclusion of the debate if requested in accordance with the 
rules of the Senate.

               TITLE III--DEBT CEILING DISAPPROVAL PROCESS

SEC. 301. DEBT CEILING DISAPPROVAL PROCESS.

    (a) In General.--Subchapter I of chapter 31 of subtitle III of title 
31, United States Code, is amended--
            (1) in section 3101(b), by striking ``or otherwise'' and 
        inserting ``or as provided by section 3101A or otherwise''; and
            (2) by inserting after section 3101 the following:
``Sec. 3101A. Presidential modification of the debt ceiling

    ``(a) In General.--
            ``(1) $900 billion.--
                    ``(A) Certification.--If, 
                not <<NOTE: Deadline.>> later than December 31, 2011, 
                the President submits a written certification to 
                Congress that the President has determined that the debt 
                subject to limit is within $100,000,000,000 of the limit 
                in section 3101(b) and that further borrowing is 
                required to meet existing commitments, the Secretary of 
                the Treasury may exercise authority to borrow an 
                additional $900,000,000,000, subject to the enactment of 
                a joint resolution of disapproval enacted pursuant to 
                this section. Upon submission of such certification, the 
                limit on debt provided in section 3101(b) (referred to 
                in this section as the `debt limit') is increased by 
                $400,000,000,000.
                    ``(B) Resolution of disapproval.--Congress may 
                consider a joint resolution of disapproval of the 
                authority under subparagraph (A) as provided in 
                subsections (b) through (f). The joint resolution of 
                disapproval considered under this section shall contain 
                only the language provided in subsection (b)(2). If the 
                time for disapproval has lapsed without enactment of a 
                joint resolution of disapproval under this section, the 
                debt limit is increased by an additional 
                $500,000,000,000.
            ``(2) Additional amount.--
                    ``(A) Certification.--If, after the debt limit is 
                increased by $900,000,000,000 under paragraph (1), the

[[Page 125 STAT. 252]]

                President submits a written certification to Congress 
                that the President has determined that the debt subject 
                to limit is within $100,000,000,000 of the limit in 
                section 3101(b) and that further borrowing is required 
                to meet existing commitments, the Secretary of the 
                Treasury may, subject to the enactment of a joint 
                resolution of disapproval enacted pursuant to this 
                section, exercise authority to borrow an additional 
                amount equal to--
                          ``(i) $1,200,000,000,000, unless clause (ii) 
                      or (iii) applies;
                          ``(ii) $1,500,000,000,000 if the Archivist of 
                      the United States has submitted to the States for 
                      their ratification a proposed amendment to the 
                      Constitution of the United States pursuant to a 
                      joint resolution entitled `Joint resolution 
                      proposing a balanced budget amendment to the 
                      Constitution of the United States'; or
                          ``(iii) if a joint committee bill to achieve 
                      an amount greater than $1,200,000,000,000 in 
                      deficit reduction as provided in section 
                      401(b)(3)(B)(i)(II) of the Budget Control Act of 
                      2011 is enacted, an amount equal to the amount of 
                      that deficit reduction, but not greater than 
                      $1,500,000,000,000, unless clause (ii) applies.
                    ``(B) Resolution of disapproval.--Congress may 
                consider a joint resolution of disapproval of the 
                authority under subparagraph (A) as provided in 
                subsections (b) through (f). The joint resolution of 
                disapproval considered under this section shall contain 
                only the language provided in subsection (b)(2). If the 
                time for disapproval has lapsed without enactment of a 
                joint resolution of disapproval under this section, the 
                debt limit is increased by the amount authorized under 
                subparagraph (A).

    ``(b) Joint Resolution of Disapproval.--
            ``(1) In general.--Except <<NOTE: Deadlines.>> for the 
        $400,000,000,000 increase in the debt limit provided by 
        subsection (a)(1)(A), the debt limit may not be raised under 
        this section if, within 50 calendar days after the date on which 
        Congress receives a certification described in subsection (a)(1) 
        or within 15 calendar days after Congress receives the 
        certification described in subsection (a)(2) (regardless of 
        whether Congress is in session), there is enacted into law a 
        joint resolution disapproving the President's exercise of 
        authority with respect to such additional amount.
            ``(2) Contents of joint resolution.--
        For <<NOTE: Definition.>> the purpose of this section, the term 
        `joint resolution' means only a joint resolution--
                    ``(A)(i) for the certification described in 
                subsection (a)(1), that is introduced on September 6, 7, 
                8, or 9, 2011 (or, if the Senate was not in session, the 
                next calendar day on which the Senate is in session); 
                and
                    ``(ii) for the certification described in subsection 
                (a)(2), that is introduced between the date the 
                certification is received and 3 calendar days after that 
                date;
                    ``(B) which does not have a preamble;
                    ``(C) the title of which is only as follows: `Joint 
                resolution relating to the disapproval of the 
                President's exercise of authority to increase the debt 
                limit, as submitted under section 3101A of title 31, 
                United States Code, on

[[Page 125 STAT. 253]]

                ______' (with the blank containing the date of such 
                submission); and
                    ``(D) the matter after the resolving clause of which 
                is only as follows: `That Congress disapproves of the 
                President's exercise of authority to increase the debt 
                limit, as exercised pursuant to the certification under 
                section 3101A(a) of title 31, United States Code.'.

    ``(c) Expedited Consideration in House of Representatives.--
            ``(1) Reconvening.--
        Upon <<NOTE: Notification. Deadline.>> receipt of a 
        certification described in subsection (a)(2), the Speaker, if 
        the House would otherwise be adjourned, shall notify the Members 
        of the House that, pursuant to this section, the House shall 
        convene not later than the second calendar day after receipt of 
        such certification.
            ``(2) Reporting and discharge.--Any committee of the House 
        of Representatives to which a joint resolution is referred shall 
        report it to the House without amendment not later than 5 
        calendar days after the date of introduction of a joint 
        resolution described in subsection (a). If a committee fails to 
        report the joint resolution within that period, the committee 
        shall be discharged from further consideration of the joint 
        resolution and the joint resolution shall be referred to the 
        appropriate calendar.
            ``(3) Proceeding to consideration.--
        After <<NOTE: Deadline.>> each committee authorized to consider 
        a joint resolution reports it to the House or has been 
        discharged from its consideration, it shall be in order, not 
        later than the sixth day after introduction of a joint 
        resolution under subsection (a), to move to proceed to consider 
        the joint resolution in the House. All points of order against 
        the motion are waived. Such a motion shall not be in order after 
        the House has disposed of a motion to proceed on a joint 
        resolution addressing a particular submission. The previous 
        question shall be considered as ordered on the motion to its 
        adoption without intervening motion. The motion shall not be 
        debatable. A motion to reconsider the vote by which the motion 
        is disposed of shall not be in order.
            ``(4) Consideration.--The joint resolution shall be 
        considered as read. All points of order against the joint 
        resolution and against its consideration are waived. The 
        previous question shall be considered as ordered on the joint 
        resolution to its passage without intervening motion except two 
        hours of debate equally divided and controlled by the proponent 
        and an opponent. A motion to reconsider the vote on passage of 
        the joint resolution shall not be in order.

    ``(d) Expedited Procedure in Senate.--
            ``(1) Reconvening.--
        Upon <<NOTE: Notification. Deadline.>> receipt of a 
        certification under subsection (a)(2), if the Senate has 
        adjourned or recessed for more than 2 days, the majority leader 
        of the Senate, after consultation with the minority leader of 
        the Senate, shall notify the Members of the Senate that, 
        pursuant to this section, the Senate shall convene not later 
        than the second calendar day after receipt of such message.
            ``(2) Placement on calendar.--Upon introduction in the 
        Senate, the joint resolution shall be immediately placed on the 
        calendar.
            ``(3) Floor consideration.--

[[Page 125 STAT. 254]]

                    ``(A) In general.--Notwithstanding <<NOTE: Time 
                period. Waiver.>> Rule XXII of the Standing Rules of the 
                Senate, it is in order at any time during the period 
                beginning on the day after the date on which Congress 
                receives a certification under subsection (a) and, for 
                the certification described in subsection (a)(1), ending 
                on September 14, 2011, and for the certification 
                described in subsection (a)(2), on the 6th day after the 
                date on which Congress receives a certification under 
                subsection (a) (even though a previous motion to the 
                same effect has been disagreed to) to move to proceed to 
                the consideration of the joint resolution, and all 
                points of order against the joint resolution (and 
                against consideration of the joint resolution) are 
                waived. The motion to proceed is not debatable. The 
                motion is not subject to a motion to postpone. A motion 
                to reconsider the vote by which the motion is agreed to 
                or disagreed to shall not be in order. If a motion to 
                proceed to the consideration of the resolution is agreed 
                to, the joint resolution shall remain the unfinished 
                business until disposed of.
                    ``(B) Consideration.--Consideration of the joint 
                resolution, and on all debatable motions and appeals in 
                connection therewith, shall be limited to not more than 
                10 hours, which shall be divided equally between the 
                majority and minority leaders or their designees. A 
                motion further to limit debate is in order and not 
                debatable. An amendment to, or a motion to postpone, or 
                a motion to proceed to the consideration of other 
                business, or a motion to recommit the joint resolution 
                is not in order.
                    ``(C) Vote on passage.--If the Senate has voted to 
                proceed to a joint resolution, the vote on passage of 
                the joint resolution shall occur immediately following 
                the conclusion of consideration of the joint resolution, 
                and a single quorum call at the conclusion of the debate 
                if requested in accordance with the rules of the Senate.
                    ``(D) Rulings of the chair on procedure.--Appeals 
                from the decisions of the Chair relating to the 
                application of the rules of the Senate, as the case may 
                be, to the procedure relating to a joint resolution 
                shall be decided without debate.

    ``(e) Amendment Not in Order.--A joint resolution of disapproval 
considered pursuant to this section shall not be subject to amendment in 
either the House of Representatives or the Senate.
    ``(f) Coordination With Action by Other House.--
            ``(1) In general.--If, before passing the joint resolution, 
        one House receives from the other a joint resolution--
                    ``(A) the joint resolution of the other House shall 
                not be referred to a committee; and
                    ``(B) the procedure in the receiving House shall be 
                the same as if no joint resolution had been received 
                from the other House until the vote on passage, when the 
                joint resolution received from the other House shall 
                supplant the joint resolution of the receiving House.
            ``(2) Treatment of joint resolution of other house.--If the 
        Senate fails to introduce or consider a joint resolution under 
        this section, the joint resolution of the House shall be 
        entitled to expedited floor procedures under this section.

[[Page 125 STAT. 255]]

            ``(3) Treatment of companion measures.--If, following 
        passage of the joint resolution in the Senate, the Senate then 
        receives the companion measure from the House of 
        Representatives, the companion measure shall not be debatable.
            ``(4) Consideration after passage.--(A) If Congress passes a 
        joint resolution, the period beginning on the date the President 
        is presented with the joint resolution and ending on the date 
        the President signs, allows to become law without his signature, 
        or vetoes and returns the joint resolution (but excluding days 
        when either House is not in session) shall be disregarded in 
        computing the appropriate calendar day period described in 
        subsection (b)(1).
            ``(B) Debate on a veto message in the Senate under this 
        section shall be 1 hour equally divided between the majority and 
        minority leaders or their designees.
            ``(5) Veto override.--If within the appropriate calendar day 
        period described in subsection (b)(1), Congress overrides a veto 
        of the joint resolution with respect to authority exercised 
        pursuant to paragraph (1) or (2) of subsection (a), the limit on 
        debt provided in section 3101(b) shall not be raised, except for 
        the $400,000,000,000 increase in the limit provided by 
        subsection (a)(1)(A).
            ``(6) Sequestration.--(A) If <<NOTE: Time 
        period. President.>> within the 50-calendar day period described 
        in subsection (b)(1), the President signs the joint resolution, 
        the President allows the joint resolution to become law without 
        his signature, or Congress overrides a veto of the joint 
        resolution with respect to authority exercised pursuant to 
        paragraph (1) of subsection (a), there shall be a sequestration 
        to reduce spending by $400,000,000,000. OMB shall implement the 
        sequestration forthwith.
            ``(B) <<NOTE: Definition.>> OMB shall implement each half of 
        such sequestration in accordance with section 255, section 256, 
        and subsections (c), (d), (e), and (f) of section 253 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985, and 
        for the purpose of such implementation the term `excess deficit' 
        means the amount specified in subparagraph (A).

    ``(g) Rules of House of Representatives and Senate.--This subsection 
and subsections (b), (c), (d), (e), and (f) (other than paragraph (6)) 
are enacted by Congress--
            ``(1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution, and it supersedes 
        other rules only to the extent that it is inconsistent with such 
        rules; and
            ``(2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and to 
        the same extent as in the case of any other rule of that 
        House.''.

    (b) Conforming Amendment.--The table of sections for chapter 31 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 3101 the following new item:

``3101A. Presidential modification of the debt ceiling.''.

[[Page 125 STAT. 256]]

SEC. 302. ENFORCEMENT OF BUDGET GOAL.

    (a) In General.--The Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by inserting after section 251 the following new 
section:
``SEC. 251A. <<NOTE: 2 USC 901a.>> ENFORCEMENT OF BUDGET GOAL.

    ``Unless a <<NOTE: Deadline.>> joint committee bill achieving an 
amount greater than $1,200,000,000,000 in deficit reduction as provided 
in section 401(b)(3)(B)(i)(II) of the Budget Control Act of 2011 is 
enacted by January 15, 2012, the discretionary spending limits listed in 
section 251(c) shall be revised, and discretionary appropriations and 
direct spending shall be reduced, as follows:
            ``(1) <<NOTE: Definitions.>>  Revised security category; 
        revised nonsecurity category.--(A) The term `revised security 
        category' means discretionary appropriations in budget function 
        050.
            ``(B) The term `revised nonsecurity category' means 
        discretionary appropriations other than in budget function 050.
            ``(2) Revised discretionary spending limits.--The 
        discretionary spending limits for fiscal years 2013 through 2021 
        under section 251(c) shall be replaced with the following:
                    ``(A) For fiscal year 2013--
                          ``(i) for the security category, 
                      $546,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $501,000,000,000 in budget authority.
                    ``(B) For fiscal year 2014--
                          ``(i) for the security category, 
                      $556,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $510,000,000,000 in budget authority.
                    ``(C) For fiscal year 2015--
                          ``(i) for the security category, 
                      $566,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $520,000,000,000 in budget authority.
                    ``(D) For fiscal year 2016--
                          ``(i) for the security category, 
                      $577,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $530,000,000,000 in budget authority.
                    ``(E) For fiscal year 2017--
                          ``(i) for the security category, 
                      $590,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $541,000,000,000 in budget authority.
                    ``(F) For fiscal year 2018--
                          ``(i) for the security category, 
                      $603,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $553,000,000,000 in budget authority.
                    ``(G) For fiscal year 2019--
                          ``(i) for the security category, 
                      $616,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $566,000,000,000 in budget authority.
                    ``(H) For fiscal year 2020--

[[Page 125 STAT. 257]]

                          ``(i) for the security category, 
                      $630,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $578,000,000,000 in budget authority.
                    ``(I) For fiscal year 2021--
                          ``(i) for the security category, 
                      $644,000,000,000 in budget authority; and
                          ``(ii) for the nonsecurity category, 
                      $590,000,000,000 in budget authority.
            ``(3) Calculation of total deficit reduction.--OMB shall 
        calculate the amount of the deficit reduction required by this 
        section for each of fiscal years 2013 through 2021 by--
                    ``(A) starting with $1,200,000,000,000;
                    ``(B) subtracting the amount of deficit reduction 
                achieved by the enactment of a joint committee bill, as 
                provided in section 401(b)(3)(B)(i)(II) of the Budget 
                Control Act of 2011;
                    ``(C) reducing the difference by 18 percent to 
                account for debt service; and
                    ``(D) dividing the result by 9.
            ``(4) Allocation to functions.--On <<NOTE: Effective 
        date.>> January 2, 2013, for fiscal year 2013, and in its 
        sequestration preview report for fiscal years 2014 through 2021 
        pursuant to section 254(c), OMB shall allocate half of the total 
        reduction calculated pursuant to paragraph (3) for that year to 
        discretionary appropriations and direct spending accounts within 
        function 050 (defense function) and half to accounts in all 
        other functions (nondefense functions).
            ``(5) Defense function reduction.--OMB shall calculate the 
        reductions to discretionary appropriations and direct spending 
        for each of fiscal years 2013 through 2021 for defense function 
        spending as follows:
                    ``(A) Discretionary.--OMB shall calculate the 
                reduction to discretionary appropriations by--
                          ``(i) taking the total reduction for the 
                      defense function allocated for that year under 
                      paragraph (4);
                          ``(ii) multiplying by the discretionary 
                      spending limit for the revised security category 
                      for that year; and
                          ``(iii) dividing by the sum of the 
                      discretionary spending limit for the security 
                      category and OMB's baseline estimate of nonexempt 
                      outlays for direct spending programs within the 
                      defense function for that year.
                    ``(B) Direct spending.--OMB shall calculate the 
                reduction to direct spending by taking the total 
                reduction for the defense function required for that 
                year under paragraph (4) and subtracting the 
                discretionary reduction calculated pursuant to 
                subparagraph (A).
            ``(6) Nondefense function reduction.--OMB shall calculate 
        the reduction to discretionary appropriations and to direct 
        spending for each of fiscal years 2013 through 2021 for programs 
        in nondefense functions as follows:
                    ``(A) Discretionary.--OMB shall calculate the 
                reduction to discretionary appropriations by--

[[Page 125 STAT. 258]]

                          ``(i) taking the total reduction for 
                      nondefense functions allocated for that year under 
                      paragraph (4);
                          ``(ii) multiplying by the discretionary 
                      spending limit for the revised nonsecurity 
                      category for that year; and
                          ``(iii) dividing by the sum of the 
                      discretionary spending limit for the revised 
                      nonsecurity category and OMB's baseline estimate 
                      of nonexempt outlays for direct spending programs 
                      in nondefense functions for that year.
                    ``(B) Direct spending.--OMB shall calculate the 
                reduction to direct spending programs by taking the 
                total reduction for nondefense functions required for 
                that year under paragraph (4) and subtracting the 
                discretionary reduction calculated pursuant to 
                subparagraph (A).
            ``(7) Implementing discretionary reductions.--
                    ``(A) Fiscal year 2013.--On <<NOTE: Effective 
                date. President. Sequestration order.>> January 2, 2013, 
                for fiscal year 2013, OMB shall calculate and the 
                President shall order a sequestration, effective upon 
                issuance and under the procedures set forth in section 
                253(f), to reduce each account within the security 
                category or nonsecurity category by a dollar amount 
                calculated by multiplying the baseline level of 
                budgetary resources in that account at that time by a 
                uniform percentage necessary to achieve--
                          ``(i) for the revised security category, an 
                      amount equal to the defense function discretionary 
                      reduction calculated pursuant to paragraph (5); 
                      and
                          ``(ii) for the revised nonsecurity category, 
                      an amount equal to the nondefense function 
                      discretionary reduction calculated pursuant to 
                      paragraph (6).
                    ``(B) Fiscal years 2014-2021.--On the date of the 
                submission of its sequestration preview report for 
                fiscal years 2014 through 2021 pursuant to section 
                254(c) for each of fiscal years 2014 through 2021, OMB 
                shall reduce the discretionary spending limit--
                          ``(i) for the revised security category by the 
                      amount of the defense function discretionary 
                      reduction calculated pursuant to paragraph (5); 
                      and
                          ``(ii) for the revised nonsecurity category by 
                      the amount of the nondefense function 
                      discretionary reduction calculated pursuant to 
                      paragraph (6).
            ``(8) Implementing direct spending reductions.--
        On <<NOTE: President. Sequestration order.>> the date specified 
        in paragraph (4) during each applicable year, OMB shall prepare 
        and the President shall order a sequestration, effective upon 
        issuance, of nonexempt direct spending to achieve the direct 
        spending reduction calculated pursuant to paragraphs (5) and 
        (6). When implementing the sequestration of direct spending 
        pursuant to this paragraph, OMB shall follow the procedures 
        specified in section 6 of the Statutory Pay-As-You-Go Act of 
        2010, the exemptions specified in section 255, and the special 
        rules specified in section 256, except that the percentage 
        reduction for the Medicare programs specified in section 256(d) 
        shall not be more than 2 percent for a fiscal year.
            ``(9) Adjustment for medicare.--If the percentage reduction 
        for the Medicare programs would exceed 2 percent for a fiscal 
        year in the absence of paragraph (8), OMB shall

[[Page 125 STAT. 259]]

        increase the reduction for all other discretionary 
        appropriations and direct spending under paragraph (6) by a 
        uniform percentage to a level sufficient to achieve the 
        reduction required by paragraph (6) in the non-defense function.
            ``(10) Implementation of reductions.--Any reductions imposed 
        under this section shall be implemented in accordance with 
        section 256(k).
            ``(11) Report.--On the dates specified in paragraph (4), OMB 
        shall submit a report to Congress containing information about 
        the calculations required under this section, the adjusted 
        discretionary spending limits, a listing of the reductions 
        required for each nonexempt direct spending account, and any 
        other data and explanations that enhance public understanding of 
        this title and actions taken under it.''.

    (b) Conforming Amendment.--The table of contents set forth in 
section 250(a) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 is amended by inserting after the item relating to section 251 
the following:

``Sec. 251A. Enforcement of budget goal.''.

          TITLE IV--JOINT SELECT COMMITTEE ON DEFICIT REDUCTION

SEC. 401. <<NOTE: 2 USC 900 note.>> ESTABLISHMENT OF JOINT SELECT 
                        COMMITTEE.

    (a) Definitions.--In this title:
            (1) Joint committee.--The term ``joint committee'' means the 
        Joint Select Committee on Deficit Reduction established under 
        subsection (b)(1).
            (2) Joint committee bill.--The term ``joint committee bill'' 
        means a bill consisting of the proposed legislative language of 
        the joint committee recommended under subsection (b)(3)(B) and 
        introduced under section 402(a).

    (b) Establishment of Joint Select Committee.--
            (1) Establishment.--There is established a joint select 
        committee of Congress to be known as the ``Joint Select 
        Committee on Deficit Reduction''.
            (2) Goal.--The goal of the joint committee shall be to 
        reduce the deficit by at least $1,500,000,000,000 over the 
        period of fiscal years 2012 to 2021.
            (3) Duties.--
                    (A) In general.--
                          (i) Improving the short-term and long-term 
                      fiscal imbalance.--The <<NOTE: Recommenda- 
                      tions.>> joint committee shall provide 
                      recommendations and legislative language that will 
                      significantly improve the short-term and long-term 
                      fiscal imbalance of the Federal Government.
                          (ii) Recommendations of committees.--
                      Not <<NOTE: Deadline.>> later than October 14, 
                      2011, each committee of the House of 
                      Representatives and the Senate may transmit to the 
                      joint committee its recommendations for changes in 
                      law to reduce the deficit consistent with the goal 
                      described in paragraph (2) for the joint 
                      committee's consideration.
                    (B) Report, recommendations, and legislative 
                language.--

[[Page 125 STAT. 260]]

                          (i) In general.--Not later than November 23, 
                      2011, the joint committee shall vote on--
                                    (I) a report that contains a 
                                detailed statement of the findings, 
                                conclusions, and recommendations of the 
                                joint committee and the estimate of the 
                                Congressional Budget Office required by 
                                paragraph (5)(D)(ii); and
                                    (II) proposed legislative language 
                                to carry out such recommendations as 
                                described in subclause (I), which shall 
                                include a statement of the deficit 
                                reduction achieved by the legislation 
                                over the period of fiscal years 2012 to 
                                2021.
                      Any change to the Rules of the House of 
                      Representatives or the Standing Rules of the 
                      Senate included in the report or legislative 
                      language shall be considered to be merely 
                      advisory.
                          (ii) Approval of report and legislative 
                      language.--The report of the joint committee and 
                      the proposed legislative language described in 
                      clause (i) shall require the approval of a 
                      majority of the members of the joint committee.
                          (iii) Additional views.--A <<NOTE: Time 
                      period.>> member of the joint committee who gives 
                      notice of an intention to file supplemental, 
                      minority, or additional views at the time of final 
                      joint committee vote on the approval of the report 
                      and legislative language under clause (ii) shall 
                      be entitled to 3 calendar days in which to file 
                      such views in writing with the staff director of 
                      the joint committee. Such views shall then be 
                      included in the joint committee report and printed 
                      in the same volume, or part thereof, and their 
                      inclusion shall be noted on the cover of the 
                      report. In the absence of timely notice, the joint 
                      committee report may be printed and transmitted 
                      immediately without such views.
                          (iv) Transmission of report and legislative 
                      language.--If the report and legislative language 
                      are approved by the joint committee pursuant to 
                      clause (ii), then not later than December 2, 2011, 
                      the joint committee shall submit the joint 
                      committee report and legislative language 
                      described in clause (i) to the President, the Vice 
                      President, the Speaker of the House of 
                      Representatives, and the majority and minority 
                      Leaders of each House of Congress.
                          (v) Report and legislative language to be made 
                      public.--Upon the approval or disapproval of the 
                      joint committee report and legislative language 
                      pursuant to clause (ii), the joint committee shall 
                      promptly make the full report and legislative 
                      language, and a record of the vote, available to 
                      the public.
            (4) Membership.--
                    (A) In general.--The joint committee shall be 
                composed of 12 members appointed pursuant to 
                subparagraph (B).
                    (B) Appointment.--Members of the joint committee 
                shall be appointed as follows:
                          (i) The majority leader of the Senate shall 
                      appoint three members from among Members of the 
                      Senate.

[[Page 125 STAT. 261]]

                          (ii) The minority leader of the Senate shall 
                      appoint three members from among Members of the 
                      Senate.
                          (iii) The Speaker of the House of 
                      Representatives shall appoint three members from 
                      among Members of the House of Representatives.
                          (iv) The minority leader of the House of 
                      Representatives shall appoint three members from 
                      among Members of the House of Representatives.
                    (C) Co-chairs.--
                          (i) In general.--
                      There <<NOTE: Appointments.>> shall be two Co-
                      Chairs of the joint committee. The majority leader 
                      of the Senate shall appoint one Co-Chair from 
                      among the members of the joint committee. The 
                      Speaker of the House of Representatives shall 
                      appoint the second Co-Chair from among the members 
                      of the joint <<NOTE: Deadline.>> committee. The 
                      Co-Chairs shall be appointed not later than 14 
                      calendar days after the date of enactment of this 
                      Act.
                          (ii) Staff director.--The Co-Chairs, acting 
                      jointly, shall hire the staff director of the 
                      joint committee.
                    (D) Date.--
                Members <<NOTE: Appointments. Deadline.>> of the joint 
                committee shall be appointed not later than 14 calendar 
                days after the date of enactment of this Act.
                    (E) Period of appointment.--
                Members <<NOTE: Deadline.>> shall be appointed for the 
                life of the joint committee. Any vacancy in the joint 
                committee shall not affect its powers, but shall be 
                filled not later than 14 calendar days after the date on 
                which the vacancy occurs, in the same manner as the 
                original designation was made. If a member of the joint 
                committee ceases to be a Member of the House of 
                Representatives or the Senate, as the case may be, the 
                member is no longer a member of the joint committee and 
                a vacancy shall exist.
            (5) Administration.--
                    (A) In general.--To enable the joint committee to 
                exercise its powers, functions, and duties, there are 
                authorized to be disbursed by the Senate the actual and 
                necessary expenses of the joint committee approved by 
                the co-chairs, subject to the rules and regulations of 
                the Senate.
                    (B) Expenses.--In carrying out its functions, the 
                joint committee is authorized to incur expenses in the 
                same manner and under the same conditions as the Joint 
                Economic Committee is authorized by section 11 of Public 
                Law 79-304 (15 U.S.C. 1024 (d)).
                    (C) Quorum.--Seven members of the joint committee 
                shall constitute a quorum for purposes of voting, 
                meeting, and holding hearings.
                    (D) Voting.--
                          (i) Proxy voting.--No proxy voting shall be 
                      allowed on behalf of the members of the joint 
                      committee.
                          (ii) Congressional budget office estimates.--
                      The Congressional Budget Office shall provide 
                      estimates of the legislation (as described in 
                      paragraph (3)(B)) in accordance with sections 
                      308(a) and 201(f) of the Congressional Budget Act 
                      of 1974 (2 U.S.C. 639(a) and 601(f))(including 
                      estimates of the effect of

[[Page 125 STAT. 262]]

                      interest payment on the debt). In addition, the 
                      Congressional Budget Office shall provide 
                      information on the budgetary effect of the 
                      legislation beyond the year 
                      2021. <<NOTE: Deadline.>> The joint committee may 
                      not vote on any version of the report, 
                      recommendations, or legislative language unless 
                      such estimates are available for consideration by 
                      all members of the joint committee at least 48 
                      hours prior to the vote as certified by the Co-
                      Chairs.
                    (E) <<NOTE: Deadlines.>>  Meetings.--
                          (i) Initial meeting.--Not later than 45 
                      calendar days after the date of enactment of this 
                      Act, the joint committee shall hold its first 
                      meeting.
                          (ii) Agenda.--The Co-Chairs of the joint 
                      committee shall provide an agenda to the joint 
                      committee members not less than 48 hours in 
                      advance of any meeting.
                    (F) Hearings.--
                          (i) In general.--The joint committee may, for 
                      the purpose of carrying out this section, hold 
                      such hearings, sit and act at such times and 
                      places, require attendance of witnesses and 
                      production of books, papers, and documents, take 
                      such testimony, receive such evidence, and 
                      administer such oaths as the joint committee 
                      considers advisable.
                          (ii) <<NOTE: Deadlines.>>  Hearing procedures 
                      and responsibilities of co-chairs.--
                                    (I) Announcement.--The Co-Chairs of 
                                the joint committee shall make a public 
                                announcement of the date, place, time, 
                                and subject matter of any hearing to be 
                                conducted, not less than 7 days in 
                                advance of such hearing, unless the Co-
                                Chairs determine that there is good 
                                cause to begin such hearing at an 
                                earlier date.
                                    (II) Written statement.--A witness 
                                appearing before the joint committee 
                                shall file a written statement of 
                                proposed testimony at least 2 calendar 
                                days before the appearance of the 
                                witness, unless the requirement is 
                                waived by the Co-Chairs, following their 
                                determination that there is good cause 
                                for failure to comply with such 
                                requirement.
                    (G) Technical assistance.--Upon written request of 
                the Co-Chairs, a Federal agency shall provide technical 
                assistance to the joint committee in order for the joint 
                committee to carry out its duties.

    (c) Staff of Joint Committee.--
            (1) In general.--The Co-Chairs of the joint committee may 
        jointly appoint and fix the compensation of staff as they deem 
        necessary, within the guidelines for employees of the Senate and 
        following all applicable rules and employment requirements of 
        the Senate.
            (2) Ethical standards.--Members on the joint committee who 
        serve in the House of Representatives shall be governed by the 
        ethics rules and requirements of the 
        House. <<NOTE: Compliance.>> Members of the Senate who serve on 
        the joint committee and staff of the joint committee shall 
        comply with the ethics rules of the Senate.

[[Page 125 STAT. 263]]

    (d) Termination.--The joint committee shall terminate on January 31, 
2012.
SEC. 402. <<NOTE: 2 USC 900 note.>> EXPEDITED CONSIDERATION OF 
                        JOINT COMMITTEE RECOMMENDATIONS.

    (a) Introduction.--If approved by the majority required by section 
401(b)(3)(B)(ii), the proposed legislative language submitted pursuant 
to section 401(b)(3)(B)(iv) shall be introduced in the Senate (by 
request) on the next day on which the Senate is in session by the 
majority leader of the Senate or by a Member of the Senate designated by 
the majority leader of the Senate and shall be introduced in the House 
of Representatives (by request) on the next legislative day by the 
majority leader of the House or by a Member of the House designated by 
the majority leader of the House.
    (b) Consideration in the House of Representatives.--
            (1) Referral and reporting.--Any committee of the House of 
        Representatives to which the joint committee bill is referred 
        shall report it to the House without amendment not later than 
        December 9, 2011. If a committee fails to report the joint 
        committee bill within that period, it shall be in order to move 
        that the House discharge the committee from further 
        consideration of the bill. Such a motion shall not be in order 
        after the last committee authorized to consider the bill reports 
        it to the House or after the House has disposed of a motion to 
        discharge the bill. The previous question shall be considered as 
        ordered on the motion to its adoption without intervening motion 
        except 20 minutes of debate equally divided and controlled by 
        the proponent and an opponent. If such a motion is adopted, the 
        House shall proceed immediately to consider the joint committee 
        bill in accordance with paragraphs (2) and (3). A motion to 
        reconsider the vote by which the motion is disposed of shall not 
        be in order.
            (2) Proceeding to consideration.--After the last committee 
        authorized to consider a joint committee bill reports it to the 
        House or has been discharged (other than by motion) from its 
        consideration, it shall be in order to move to proceed to 
        consider the joint committee bill in the House. Such a motion 
        shall not be in order after the House has disposed of a motion 
        to proceed with respect to the joint committee bill. The 
        previous question shall be considered as ordered on the motion 
        to its adoption without intervening motion. A motion to 
        reconsider the vote by which the motion is disposed of shall not 
        be in order.
            (3) Consideration.--The joint committee bill shall be 
        considered as read. <<NOTE: Waiver.>> All points of order 
        against the joint committee bill and against its consideration 
        are waived. The previous question shall be considered as ordered 
        on the joint committee bill to its passage without intervening 
        motion except 2 hours of debate equally divided and controlled 
        by the proponent and an opponent and one motion to limit debate 
        on the joint committee bill. A motion to reconsider the vote on 
        passage of the joint committee bill shall not be in order.
            (4) Vote on passage.--The <<NOTE: Deadline.>> vote on 
        passage of the joint committee bill shall occur not later than 
        December 23, 2011.

    (c) Expedited Procedure in the Senate.--
            (1) Committee consideration.--
        A <<NOTE: Reports. Deadline.>> joint committee bill introduced 
        in the Senate under subsection (a) shall be jointly

[[Page 125 STAT. 264]]

        referred to the committee or committees of jurisdiction, which 
        committees shall report the bill without any revision and with a 
        favorable recommendation, an unfavorable recommendation, or 
        without recommendation, not later than December 9, 2011. If any 
        committee fails to report the bill within that period, that 
        committee shall be automatically discharged from consideration 
        of the bill, and the bill shall be placed on the appropriate 
        calendar.
            (2) Motion to proceed.--
        Notwithstanding <<NOTE: Deadline.>> Rule XXII of the Standing 
        Rules of the Senate, it is in order, not later than 2 days of 
        session after the date on which a joint committee bill is 
        reported or discharged from all committees to which it was 
        referred, for the majority leader of the Senate or the majority 
        leader's designee to move to proceed to the consideration of the 
        joint committee bill. It shall also be in order for any Member 
        of the Senate to move to proceed to the consideration of the 
        joint committee bill at any time after the conclusion of such 2-
        day period. A motion to proceed is in order even though a 
        previous motion to the same effect has been disagreed 
        to. <<NOTE: Waiver.>> All points of order against the motion to 
        proceed to the joint committee bill are waived. The motion to 
        proceed is not debatable. The motion is not subject to a motion 
        to postpone. A motion to reconsider the vote by which the motion 
        is agreed to or disagreed to shall not be in order. If a motion 
        to proceed to the consideration of the joint committee bill is 
        agreed to, the joint committee bill shall remain the unfinished 
        business until disposed of.
            (3) Consideration.--All points of order against the joint 
        committee bill and against consideration of the joint committee 
        bill are waived. Consideration of the joint committee bill and 
        of all debatable motions and appeals in connection therewith 
        shall not exceed a total of 30 hours which shall be divided 
        equally between the Majority and Minority Leaders or their 
        designees. A motion further to limit debate on the joint 
        committee bill is in order, shall require an affirmative vote of 
        three-fifths of the Members duly chosen and sworn, and is not 
        debatable. Any debatable motion or appeal is debatable for not 
        to exceed 1 hour, to be divided equally between those favoring 
        and those opposing the motion or appeal. All time used for 
        consideration of the joint committee bill, including time used 
        for quorum calls and voting, shall be counted against the total 
        30 hours of consideration.
            (4) No amendments.--An amendment to the joint committee 
        bill, or a motion to postpone, or a motion to proceed to the 
        consideration of other business, or a motion to recommit the 
        joint committee bill, is not in order.
            (5) Vote on passage.--If the Senate has voted to proceed to 
        the joint committee bill, the vote on passage of the joint 
        committee bill shall occur immediately following the conclusion 
        of the debate on a joint committee bill, and a single quorum 
        call at the conclusion of the debate if 
        requested. <<NOTE: Deadline.>> The vote on passage of the joint 
        committee bill shall occur not later than December 23, 2011.
            (6) Rulings of the chair on procedure.--Appeals from the 
        decisions of the Chair relating to the application of the rules 
        of the Senate, as the case may be, to the procedure

[[Page 125 STAT. 265]]

        relating to a joint committee bill shall be decided without 
        debate.

    (d) Amendment.--The joint committee bill shall not be subject to 
amendment in either the House of Representatives or the Senate.
    (e) Consideration by the Other House.--
            (1) In general.--If, before passing the joint committee 
        bill, one House receives from the other a joint committee bill--
                    (A) the joint committee bill of the other House 
                shall not be referred to a committee; and
                    (B) the procedure in the receiving House shall be 
                the same as if no joint committee bill had been received 
                from the other House until the vote on passage, when the 
                joint committee bill received from the other House shall 
                supplant the joint committee bill of the receiving 
                House.
            (2) Revenue measure.--This subsection shall not apply to the 
        House of Representatives if the joint committee bill received 
        from the Senate is a revenue measure.

    (f) Rules to Coordinate Action With Other House.--
            (1) Treatment of joint committee bill of other house.--If 
        the Senate fails to introduce or consider a joint committee bill 
        under this section, the joint committee bill of the House shall 
        be entitled to expedited floor procedures under this section.
            (2) Treatment of companion measures in the senate.--If 
        following passage of the joint committee bill in the Senate, the 
        Senate then receives the joint committee bill from the House of 
        Representatives, the House-passed joint committee bill shall not 
        be debatable. The vote on passage of the joint committee bill in 
        the Senate shall be considered to be the vote on passage of the 
        joint committee bill received from the House of Representatives.
            (3) Vetoes.--If the President vetoes the joint committee 
        bill, debate on a veto message in the Senate under this section 
        shall be 1 hour equally divided between the majority and 
        minority leaders or their designees.

    (g) Loss of Privilege.--The <<NOTE: Deadlines.>> provisions of this 
section shall cease to apply to the joint committee bill if--
            (1) the joint committee fails to vote on the report or 
        proposed legislative language required under section 
        401(b)(3)(B)(i) not later than November 23, 2011; or
            (2) the joint committee bill does not pass both Houses not 
        later than December 23, 2011.
SEC. 403. <<NOTE: 2 USC 900 note.>> FUNDING.

    Funding for the joint committee shall be derived in equal portions 
from--
            (1) the applicable accounts of the House of Representatives; 
        and
            (2) the contingent fund of the Senate from the 
        appropriations account ``Miscellaneous Items'', subject to the 
        rules and regulations of the Senate.
SEC. 404. <<NOTE: 2 USC 900 note.>> RULEMAKING.

    The provisions of this title are enacted by Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such they 
        shall be considered as part of the rules of each House, 
        respectively, or of that House to which they specifically apply,

[[Page 125 STAT. 266]]

        and such rules shall supersede other rules only to the extent 
        that they are inconsistent therewith; and
            (2) with full recognition of the constitutional right of 
        either House to change such rules (so far as relating to such 
        House) at any time, in the same manner, and to the same extent 
        as in the case of any other rule of such House.

          TITLE V--PELL GRANT AND STUDENT LOAN PROGRAM CHANGES

SEC. 501. FEDERAL PELL GRANTS.

    Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 (20 
U.S.C. 1070a(b)(7)(A)(iv)) is amended--
            (1) in subclause (II), by striking ``$3,183,000,000'' and 
        inserting ``$13,183,000,000''; and
            (2) in subclause (III), by striking ``$0'' and inserting 
        ``$7,000,000,000''.
SEC. 502. TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED 
                        LOANS TO GRADUATE AND PROFESSIONAL 
                        STUDENTS.

    Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(a)) is amended by adding at the end the following new paragraph:
            ``(3) Termination of authority to make interest subsidized 
        loans to graduate and professional students.--
                    ``(A) In general.--Subject to subparagraph (B) and 
                notwithstanding any provision of this part or part B, 
                for any period of instruction beginning on or after July 
                1, 2012--
                          ``(i) a graduate or professional student shall 
                      not be eligible to receive a Federal Direct 
                      Stafford loan under this part; and
                          ``(ii) the maximum annual amount of Federal 
                      Direct Unsubsidized Stafford loans such a student 
                      may borrow in any academic year (as defined in 
                      section 481(a)(2)) or its equivalent shall be the 
                      maximum annual amount for such student determined 
                      under section 428H, plus an amount equal to the 
                      amount of Federal Direct Stafford loans the 
                      student would have received in the absence of this 
                      subparagraph.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to an individual enrolled in course work specified in 
                paragraph (3)(B) or (4)(B) of section 484(b).''.
SEC. 503. TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES.

    Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(b)(8)) is amended--
            (1) in subparagraph (A)--
                    (A) by amending the header to read as follows: ``(A) 
                Incentives for loans disbursed before july 1, 2012.--''; 
                and
                    (B) by inserting ``with respect to loans for which 
                the first disbursement of principal is made before July 
                1, 2012,'' after ``of this part'';

[[Page 125 STAT. 267]]

            (2) in subparagraph (B), by inserting ``with respect to 
        loans for which the first disbursement of principal is made 
        before July 1, 2012'' after ``repayment incentives''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) No repayment incentives for new loans 
                disbursed on or after july 1, 2012.--Notwithstanding any 
                other provision of this part, the Secretary is 
                prohibited from authorizing or providing any repayment 
                incentive not otherwise authorized under this part to 
                encourage on-time repayment of a loan under this part 
                for which the first disbursement of principal is made on 
                or after July 1, 2012, including any reduction in the 
                interest or origination fee rate paid by a borrower of 
                such a loan, except that the Secretary may provide for 
                an interest rate reduction for a borrower who agrees to 
                have payments on such a loan automatically 
                electronically debited from a bank account.''.
SEC. 504. <<NOTE: 20 USC 1089 note.>> INAPPLICABILITY OF TITLE IV 
                        NEGOTIATED RULEMAKING AND MASTER CALENDAR 
                        EXCEPTION.

    Sections 482(c) and 492 of the Higher Education Act of 1965 (20 
U.S.C. 1089(c), 1098a) shall not apply to the amendments made by this 
title, or to any regulations promulgated under those amendments.

    Approved August 2, 2011.

LEGISLATIVE HISTORY--S. 365:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 157 (2011):
            Feb. 17, considered and passed Senate.
            Aug. 1, considered and passed House, amended.
            Aug. 2, Senate concurred in House amendment.

                                  <all>