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112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-190

======================================================================



 
 PROVIDING FOR CONSIDERATION OF THE BILL (S. 365) TO MAKE A TECHNICAL 
         AMENDMENT TO THE EDUCATION SCIENCES REFORM ACT OF 2002

                                _______
                                

   August 1, 2011.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

               Mr. Dreier, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 384]

    The Committee on Rules, having had under consideration 
House Resolution 384, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of S. 365, to 
make a technical amendment to the Education Sciences Reform Act 
of 2002, under a closed rule. The resolution provides one hour 
of debate with thirty minutes equally divided and controlled by 
the chair and ranking minority member of the Committee on 
Rules, fifteen minutes equally divided and controlled by the 
chair and ranking minority member of the Committee on Ways and 
Means, and fifteen minutes equally divided and controlled by 
the chair and ranking minority member of the Committee on the 
Budget. The resolution waives all points of order against 
consideration of the bill. The resolution provides that the 
amendment in the nature of a substitute printed in this report 
shall be considered as adopted. The bill, as amended, shall be 
considered as read. The resolution waives all points of order 
against provisions in the bill, as amended. The resolution 
provides one motion to recommit with or without instructions.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill includes a waiver of clause 10 of rule XXI, 
prohibiting the consideration of a bill if it has the net 
effect of increasing mandatory spending over the five or ten 
year period. Title V of the bill, as amended, provides $17 
billion in mandatory funding for the Federal Pell Grant program 
and makes other changes to education programs that decrease 
spending. While title V has the net effect of decreasing 
mandatory spending by $5 billion over the ten year period, it 
also has the net effect of increasing mandatory spending by $8 
billion over the five year period, causing the bill to be in 
violation of clause 10 of rule XXI.
    It is important to note that the bill, as amended, produces 
significant savings over the ten year period through the 
establishment of statutory caps on discretionary spending that 
are enforced by across-the-board spending reductions. Because 
these spending reductions are discretionary savings, the 
Congressional Budget Office does not take these savings into 
account for the purposes of clause 10 of rule XXI. It is also 
important to note that the Congressional Budget Office does not 
recognize the estimated $16 billion in program integrity 
savings over the ten year period when calculating the net 
budgetary effect of title V for the purposes of enforcing 
clause 10 of rule XXI.
    The waiver of all points of order against consideration of 
the bill also includes a waiver of section 302(f) of the 
Congressional Budget Act prohibiting the consideration of 
legislation providing new budget authority in excess of a 
committee's 302(a) allocation of such authority in the first 
fiscal year or over ten fiscal years. Title V of the bill, as 
amended, increases mandatory funding for the Federal Pell Grant 
program. The increase in funding exceeds the 302(a) allocation 
for the Committee on Education and the Workforce in the first 
fiscal year period by $3 billion, causing the bill to be in 
violation of section 302(f) of the Congressional Budget Act.
    The waiver of all points of order against consideration of 
the bill also includes a waiver of section 306 of the 
Congressional Budget Act prohibiting consideration of a bill 
containing matter within the jurisdiction of the Committee on 
the Budget not reported by the Committee on the Budget.
    Although the resolution waives all points of order against 
provisions in the bill, as amended, the Committee is not aware 
of any points of order against provisions in the bill, as 
amended. The waiver is prophylactic.

               SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED

    The amendment in the nature of a substitute would strike 
all after the enacting clause and insert a new matter 
consisting of the Budget Control Act of 2011 (BCA). The BCA 
would: establish ten year discretionary spending caps; provide 
for the passage of a balanced budget amendment to the 
Constitution; create a joint committee of Congress charged with 
making legislative recommendations to achieve additional 
spending reductions; increase the debt limit pursuant to a 
resolution of disapproval and sequestration procedures; 
establish expedited procedures for consideration of a 
resolution of disapproval and for consideration of the joint 
committee's recommendations; and make changes to the Pell Grant 
program.

   SECTION-BY-SECTION ANALYSIS OF THE BUDGET CONTROL ACT OF 2011 AS 
                         PRINTED IN THIS REPORT

Section 1. Short Title; Table of Contents

    This section provides a short title for the bill, the 
``Budget Control Act of 2011.'' It also provides a table of 
contents.

Sec. 2. Severability

    This section ensures that if a provision of this bill is 
found to be unconstitutional, the other provisions of the bill 
will remain in force and effect.

          TITLE I--TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

Sec. 101. Enforcing Discretionary Spending Limits

    This section amends section 251 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 to establish 10-year 
discretionary spending limits (caps) for fiscal years 2012 
through 2021 that would reduce the deficit by $917 billion. 
Subsection (a) enforces the discretionary spending caps through 
a sequestration process (across-the-board reductions) occurring 
15 days after Congress adjourns at the end of a session and 
authorizes the President to exempt any military personnel 
accounts from sequestration provided that the savings are 
achieved through across-the-board reductions in the remainder 
of the Department of Defense (DOD) budget. Subsection (a) 
largely mirrors the Balanced Budget and Emergency Deficit 
Control Act of 1985 (also known as ``Gramm-Rudman-Hollings'') 
providing guidance for part-year appropriations, a look-back 
sequester, and a within session sequestration if caps are 
exceeded. It also provides a timeline of Congressional Budget 
Office (CBO) and Office of Management and Budget (OMB) 
estimates and explanation of differences.
    Subsection (b) provides for adjustments to discretionary 
spending limits for emergency appropriations, appropriations 
for the global war on terrorism, and appropriations for major 
disasters. It also provides adjustments for additional spending 
to combat waste, fraud, and abuse.
    Subsection (c) establishes discretionary limits for FY 2012 
through 2021. It sets separate discretionary limits for 
security programs (Departments of Defense, Homeland Security, 
and Veterans' Affairs, the National Nuclear Security 
Administration, the intelligence community management account, 
and Function 150 (State Department and International 
Assistance)) and non-security programs for FY 2012 and FY 2013.

Sec. 102. Definitions

    This section amends section 250 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 to define terms used in 
the title, including emergencies.

Sec. 103. Reports and Orders

    This section provides updates to reports and orders 
required by section 254 of the Balanced Budget and Emergency 
Deficit Control Act of 1985.

Sec. 104. Expiration

    This section repeals section 275 of the Balance Budget and 
Emergency Deficit Control Act of 1985 that has the effect of 
putting the discretionary enforcement sequester procedures in 
effect.

Sec. 105. Amendments to the Congressional Budget and Impoundment 
        Control Act of 1974

    This section provides for amendments to the Congressional 
Budget Act of 1974. Specifically, section 314 of that Act is 
amended to allow the Chairman of the House and Senate Budget 
Committees to make budgetary adjustments to reflect the 
adjustments in spending limits. It also provides for the budget 
treatment of emergency spending and a process by which members 
of the House can strike a designation for emergency funding.
    The section further establishes a new point of order 
against consideration of a measure that would violate the 
discretionary spending caps. A waiver of this point of order 
would require a three-fifths vote in the Senate.

Sec. 106. Senate Budget Enforcement

    This section deems a budget passed in the Senate for 
purposes of providing committee allocations and budget 
enforcement tools. With the exception of discretionary levels, 
the deeming language largely follows CBO baseline levels.

            TITLE II--VOTE ON THE BALANCED BUDGET AMENDMENT

Sec. 201. Vote on the Balanced Budget Amendment

    This section requires a vote on passage of a joint 
resolution entitled ``Joint resolution proposing a balanced 
budget amendment to the Constitution of the United States'' 
between October 1, 2011 and December 31, 2011.

Sec. 202. Consideration by the Other House

    This section provides for expedited consideration by the 
House and Senate of the joint resolution of the other House. 
These provisions are largely similar to the expedited 
procedures used in title III.

              TITLE III--DEBT CEILING DISAPPROVAL PROCESS

Sec. 301. Debt Ceiling Disapproval Process

    This section adds a new section after 31 U.S.C. 3101 
providing for modification of the debt ceiling by the President 
and a process for the Congress to disapprove of those 
modifications.
    The new section provides that if the President submits a 
written certification to Congress by December 31, 2011 that the 
debt is within $100 billion of the debt limit, the Secretary of 
the Treasury is authorized to borrow an additional $900 
billion, subject to the enactment of a joint resolution of 
disapproval. Upon submission of the certification, the debt 
limit is increased by $400 billion.
    The section authorizes the Congress to consider a joint 
resolution of disapproval subject to the procedures of this 
section. If Congress fails to enact the joint resolution, the 
debt limit is increased by an additional $500 billion.
    In the absence of any further action by Congress, this 
section authorizes the Secretary to borrow an additional amount 
equal to $1.2 trillion, subject to Presidential certification 
and Congressional disapproval. If a balanced budget amendment 
is sent to the states for ratification, the Secretary may 
borrow $1.5 trillion. If a balanced budget amendment is not 
sent to the states for ratification, but the amount of deficit 
reduction achieved by the joint committee is greater than $1.2 
trillion, the Secretary is permitted to borrow an amount equal 
to the amount of deficit reduction, but may not exceed $1.5 
trillion. All increases in borrowing authority are subject to 
Congressional disapproval.
    The section further mandates the content of the joint 
resolution of disapproval, limitations on when a joint 
resolution may be introduced, and expedited procedures for 
consideration of the joint resolution. Under this section, a 
resolution of disapproval must be enacted within 50 calendar 
days for the initial $900 billion or within 15 calendar days 
for an additional amount to prevent an increase in borrowing 
authority.
    Expedited procedures in the House:
     Any committee to which the joint resolution has 
been referred must report it to the House not later than five 
calendar days after the introduction of the joint resolution. 
If a committee fails to report the joint resolution within the 
time period, the committee is discharged from further 
consideration.
     Requires consideration of the joint resolution in 
the House not later than six calendar days after introduction 
of the joint resolution.
     All points of order against the joint resolution 
and its consideration are waived.
     No amendments to the joint resolution are in 
order.
     The joint resolution is debatable for two hours 
prior to a vote on passage.
    Expedited procedures in the Senate:
     A motion to proceed to a joint resolution of 
disapproval of the initial $900 billion increase to the debt 
limit is in order at any time during the period beginning the 
day after receipt of a Presidential certification and ending on 
September 14, 2011.
     A motion to proceed to a joint resolution of 
disapproval of the additional amount is in order at any time 
during the period beginning the day after receipt of a 
Presidential certification and ending on the 6th day after 
Congress has received a certification.
     All points of order against the joint resolution 
are waived.
     No amendments to the joint resolution are in 
order.
     Consideration of the joint resolution is limited 
to not more than 10 hours.
    The section also provides that if the President vetoes a 
resolution of disapproval and the Congress overrides the veto, 
the debt limit is not increased. If the Congress overrides the 
President's veto, the Office of Management and Budget is 
directed to sequester pro rata amounts from certain accounts 
equal to the initial $400 billion provided in this section for 
the first round of debt limit increases.

Sec. 302. Enforcement of Budget Goal

    If the joint committee, created in title IV of this bill 
fails to achieve at least $1.2 trillion in deficit reduction, a 
sequestration process must be implemented. As part of the 
sequestration procedures, this section establishes revised 
security and non-security allocations for each fiscal year and 
revises the definition of security category, limiting the 
category to the Department of Defense. It also reduces the 
discretionary spending limits and includes sequestration 
procedures for direct spending to ensure these spending 
reductions are achieved.

         TITLE IV--JOINT SELECT COMMITTEE ON DEFICIT REDUCTION

Sec. 401. Establishment of Joint Committee

    Subsection (a) defines terms used in the title. 
Specifically, it defines the term ``joint committee'' as the 
Joint Select Committee on Deficit Reduction and ``joint 
committee bill'' as the bill containing the legislative 
recommendations of the joint committee.
    Subsection (b) provides for the establishment of the joint 
committee. Paragraph (1) establishes the joint committee, and 
paragraph (2) sets forth the goal of reducing the deficit by 
$1.5 trillion over the period of 2012 through 2021.
    Paragraph (3) establishes the duties of the joint 
committee. The joint committee is required to provide 
recommendations (including legislative language) that will 
significantly improve both the short- and long-term fiscal 
imbalance of the Federal Government.
    The joint committee must also consider any recommendations 
from House and Senate committees with respect to changes in law 
necessary to meet the goal of the joint committee. Those 
committees may report their recommendations to the joint 
committee by October 14, 2011.
    By November 23, 2011, the joint committee is required to 
vote on a report which contains the findings, conclusions, and 
recommendations of the joint committee, as well as the 
estimates provided by the Congressional Budget Office (CBO) and 
legislative language in support of those recommendations, which 
must also contain a statement of the deficit reduction achieved 
over fiscal years 2012 through 2021. A majority of the members 
of the joint committee must approve the report and accompanying 
legislative language. The text of the report and accompanying 
legislative language must be made public promptly after the 
vote on adoption of those matters.
    The legislation also provides for any member of the joint 
committee to file additional, supplemental, or minority views 
within 3 calendar days if that member provides notice of his or 
her intention at the time of final vote on adoption of the 
report and legislative language. The report and accompanying 
legislative language must be transmitted to the President, Vice 
President, the Speaker of the House, and the majority and 
minority leaders of the House and Senate by December 2, 2011.
    The joint committee is to be comprised of 12 members 
appointed by the majority and minority leaders of the Senate, 
and the Speaker and minority leader of the House, who each must 
appoint three members. The Speaker and the majority leader of 
the Senate must each appoint one member to serve as Co-Chair 
from among the members of the joint committee. The members of 
the joint committee and the Co-Chairs must be appointed within 
14 calendar days after enactment of this bill. Members are 
appointed for the life of the joint committee, and a vacancy 
must be filled in the same manner as the original appointment.
    The Co-Chairs must jointly hire a staff director for the 
joint committee. It is also authorized to incur expenses in the 
same manner as the Joint Economic Committee and any actual and 
necessary expenses approved by the co-chairs are authorized to 
be disbursed by the Senate, subject to Senate rules and 
regulations.
    Seven members of the joint committee constitute a quorum 
for purposes of voting, meeting, and holding hearings.
    With respect to voting, proxy voting is prohibited and the 
joint committee is enjoined from voting on the report, 
recommendations, or legislative language unless an estimate 
from the CBO is available to the members of the joint committee 
for at least 48 hours prior. In its analysis, CBO is required 
to estimate the effect of interest payments on the debt, and 
CBO is also directed to estimate the budgetary effects of the 
legislative language beyond 2021.
    The joint committee must hold its first meeting not later 
than 45 days after the date of enactment of this legislation 
and the Co-Chairs must provide an agenda at least 48 hours 
prior to each meeting.
    The joint committee is authorized to hold hearings, require 
attendance of witnesses and production of documents, take 
testimony, receive evidence, and administer oaths as the 
committee deems advisable. It may also sit and act whenever 
necessary.
    Hearings must be announced at least 7 days in advance, 
unless the Co-Chairs determine that there is good cause to hold 
a hearing earlier. Witnesses appearing before the joint 
committee must file a written statement of proposed testimony 
at least 2 days prior to appearance, unless waived by the Co-
Chairs.
    Federal agencies must provide technical assistance to the 
joint committee on the written request of the Co-Chairs.
    Subsection (c)(1) addresses the staff of the joint 
committee. The Co-Chairs are authorized to appoint and set the 
compensation of staff as they deem necessary, and within the 
guidelines and rules for Senate employees. Paragraph (2) 
provides that the members of the joint committee will be bound 
by the rules and ethical requirements of the House in which 
they serve, while the staff of the joint committee is governed 
by the Senate ethics rules.

Sec. 402. Expedited Consideration of Joint Committee Recommendations

    Subsection (a) provides for introduction of the joint 
committee's legislative recommendations. If approved by the 
joint committee, the legislative language accompanying their 
recommendations must be introduced on the next session or 
legislative day in the House or Senate, respectively. The 
measure is to be introduced (by request) in the Senate and 
House by the majority leader of each body or a designee.
    Subsection (b) provides for expedited consideration in the 
House. Each committee receiving a referral of the joint 
committee bill must report that bill without amendment not 
later than December 9, 2011. If a committee fails to report the 
bill prior to that date, a member may offer a motion to 
discharge the bill. That motion is debatable for 20 minutes, 
equally divided and controlled between the proponent and an 
opponent and a motion to reconsider the vote disposing of the 
motion is not available. The motion to discharge is not 
available after the last committee reports the bill or the 
House has considered a prior motion to discharge.
    If the motion is adopted or after the last committee 
reports the joint committee bill, a motion to proceed to the 
consideration of the bill is in order. The motion to proceed is 
not debatable, and a motion to reconsider the vote disposing of 
the motion to proceed is not available.
    If the House proceeds to consideration of the joint 
committee bill, all points of order against the bill and its 
consideration are waived, and it is considered as read. The 
joint committee bill is debatable for 2 hours, equally divided 
and controlled by the proponent and an opponent. One motion to 
limit debate is available, while a motion to reconsider the 
vote disposing of the joint committee bill is not in order. The 
vote on passage of the joint committee bill must occur on or 
before December 23, 2011.
    Subsection (c) provides for expedited consideration in the 
Senate. The joint committee bill must be referred jointly to 
the committees of jurisdiction. Each committee to which the 
bill is referred must report the bill with a favorable or 
unfavorable recommendation, or no recommendation, by not later 
than December 9, 2011 and without amendment. If any committee 
fails to report the bill by that date, that committee will be 
automatically discharged and the joint committee bill placed on 
the appropriate calendar.
    Two days after the last Senate committee reports the joint 
committee bill or is discharged, the majority leader of the 
Senate or a designee may move to proceed to the consideration 
of the joint committee bill, even if a prior motion to proceed 
has failed. All points of order against the motion to proceed 
are waived and it is not debatable, and it is not subject to a 
motion to postpone or reconsider. If the motion to proceed is 
agreed to, the joint committee bill will remain unfinished 
business until it is disposed of.
    Consideration of the joint committee bill, including all 
debatable motions and appeals, is limited to 30 hours equally 
divided between the majority and minority leaders of the 
Senate. All points of order against the joint committee bill 
and its consideration are waived. A non-debatable motion to 
limit debate is available and requires an affirmative three-
fifths vote. Any debatable motion or appeal is limited to one 
hour, equally divided between a proponent and an opponent. All 
time used for consideration of the joint committee bill, 
including time used for quorum calls, counts against the 30-
hour total.
    No amendments to the joint committee bill or a motion to 
postpone, proceed to the consideration of other business, or 
recommit are in order. Appeals from decisions of the chair 
regarding application of the rules of the Senate to 
consideration of the joint committee bill are non-debatable.
    The Senate must vote on passage of the joint committee bill 
immediately after the conclusion of debate and a quorum call, 
if requested. The Senate must also vote on the joint committee 
bill not later than December 23, 2011.
    Subsection (d) provides that the joint committee bill is 
not subject to amendment in either the House or Senate.
    Subsection (e) provides standard language to address the 
handling of the joint committee bill if passed by one chamber 
before the other has completed its consideration. It also 
provides that if the joint committee bill is a revenue measure, 
the subsection does not apply to the House.
    Subsection (f) also contains several standard provisions to 
address issues in the Senate when they receive a joint 
committee bill from the House. First, it provides that joint 
committee bill originated by the House is entitled to expedited 
consideration in the Senate if the Senate fails to introduce or 
consider a joint committee bill. Second, if the Senate receives 
the joint committee bill after passage of the joint committee 
bill, the House version is not debatable and the vote on 
passage of the Senate version is considered to be the vote on 
the House version. Finally, it provides that debate on a veto 
message on the joint committee bill in the Senate is limited to 
one hour, equally divided between the majority and minority 
leaders.
    Subsection (g) provides that the joint committee bill loses 
its privileged status if the joint committee fails to vote on 
the report or legislative language by November 23, 2011 or the 
joint committee bill does not pass both the House and Senate by 
December 23, 2011.

Sec. 403. Funding

    This section provides that the funding of the joint 
committee is to be paid equally out of the applicable accounts 
of the Senate and House of Representatives, subject to the 
rules and regulations of the Senate.

Sec. 404. Rulemaking

    This section clarifies that the provisions are enacted as 
an exercise of the rulemaking powers of the House and Senate, 
that they are considered part of the rules of each House, and 
that each House has a constitutional right to change the rules 
in the same manner that each House may change any other rule.

          TITLE V--PELL GRANT AND STUDENT LOAN PROGRAM CHANGES

Sec. 501. Federal Pell Grants

    This section provides $17 billion in mandatory funds over 
two years to help fill the funding gap in the Federal Pell 
Grant program. This additional funding is offset by reductions 
through reforms to the student loan program in sections 502 and 
503.

Sec. 502. Termination of Authority to Make Interest Subsidized Loans to 
        Graduate and Professional Students

    This section eliminates the ability of graduate and 
professional students to take out subsidized Stafford loans, 
beginning on July 1, 2012. This elimination does not apply to 
students enrolled in a program leading up to a degree or 
certificate or students enrolled in a program necessary for a 
teaching credential or certification where such credential or 
certification is required by the state.

Sec. 503. Termination of Direct Loan Repayment Incentives

    This section sunsets the Secretary of Education's authority 
to provide incentives for on-time repayment of student loans on 
July 1, 2012. This section also explicitly prohibits the 
Secretary of Education from creating any incentives for on-time 
repayment of student loans.

Sec. 504. Inapplicability of Title IV Negotiated Rulemaking and Master 
        Calendar Exception

    This section clarifies that the negotiated rulemaking 
requirement included in title IV and the master calendar 
requirements to not apply to the changes made in this Act.

                TEXT OF AMENDMENT CONSIDERED AS ADOPTED

   Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This 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. 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.

          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 is amended to read as follows:

``SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS.

  ``(a) Enforcement.--
          ``(1) Sequestration.--Within 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 an 
        appropriation for a fiscal year in progress is enacted 
        (after Congress adjourns to end the session for that 
        budget year and before July 1 of that fiscal year) that 
        causes a breach within a category for that year (after 
        taking into account any prior sequestration of amounts 
        within that category), 15 days later there shall be a 
        sequestration to eliminate that breach within that 
        category following the procedures set forth in 
        paragraphs (2) through (4).
          ``(7) Estimates.--
                  ``(A) CBO estimates.--As soon as practicable 
                after Congress completes action on any 
                discretionary appropriation, CBO, after 
                consultation with the Committees on the Budget 
                of the House of Representatives and the Senate, 
                shall provide OMB with an estimate of the 
                amount of discretionary new budget authority 
                and outlays for the current year, if any, and 
                the budget year provided by that legislation.
                  ``(B) OMB estimates and explanation of 
                differences.--Not later than 7 calendar days 
                (excluding Saturdays, Sundays, and legal 
                holidays) after the date of enactment of any 
                discretionary appropriation, OMB shall transmit 
                a report to the House of Representatives and to 
                the Senate containing the CBO estimate of that 
                legislation, an OMB estimate of the amount of 
                discretionary new budget authority and outlays 
                for the current year, if any, and the budget 
                year provided by that legislation, and an 
                explanation of any difference between the 2 
                estimates. If during the preparation of the 
                report OMB determines that there is a 
                significant difference between OMB and CBO, OMB 
                shall consult with the Committees on the Budget 
                of the House of Representatives and the Senate 
                regarding that difference and that consultation 
                shall include, to 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.
          ``(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) 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;
                          ``(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) 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 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) 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 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 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).
          ``(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 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 is repealed.
  (b) Conforming Change.--Sections 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 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 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 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 is amended by striking ``and 
312(c)'' and inserting ``312(c), and 314(e)''.

SEC. 106. SENATE BUDGET ENFORCEMENT.

  (a) In General.--
          (1) For the purpose of enforcing the Congressional 
        Budget Act of 1974 through 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)(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) 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 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) 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) 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) 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.

            TITLE II--VOTE ON THE BALANCED BUDGET AMENDMENT


SEC. 201. VOTE ON THE BALANCED BUDGET AMENDMENT.

  After 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 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 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 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 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 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 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 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 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 ______' (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 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 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 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.--
                  ``(A) In general.--Notwithstanding 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.
          ``(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 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) 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.''.

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. ENFORCEMENT OF BUDGET GOAL.

  ``Unless a 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) 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--
                          ``(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 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--
                          ``(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 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 
        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 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. 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 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 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.--
                          (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 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 3 members from among 
                        Members of the Senate.
                          (ii) The minority leader of the 
                        Senate shall appoint 3 members from 
                        among Members of the Senate.
                          (iii) The Speaker of the House of 
                        Representatives shall appoint 3 members 
                        from among Members of the House of 
                        Representatives.
                          (iv) The minority leader of the House 
                        of Representatives shall appoint 3 
                        members from among Members of the House 
                        of Representatives.
                  (C) Co-chairs.--
                          (i) In general.--There shall be 2 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 
                        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 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 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 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. 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) 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) 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. 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.
  (d) Termination.--The joint committee shall terminate on 
January 31, 2012.

SEC. 402. 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. 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 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 joint committee bill 
        introduced in the Senate under subsection (a) shall be 
        jointly 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 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. 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. 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 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 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. 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. 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, 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'';
          (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. 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.