[United States Statutes at Large, Volume 125, 112th Congress, 1st Session]
[From the U.S. Government Printing Office, www.gpo.gov]


Public Law 112-25
112th Congress

An Act

 
To provide for budget control. <>

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <>
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.

[[Page 241]]

TITLE I--TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

SEC. 101. ENFORCING DISCRETIONARY SPENDING LIMITS.

Section 251 of the Balanced Budget and Emergency Deficit Control Act
of 1985 <>  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.--

[[Page 242]]

``(A) CBO estimates.--As soon as practicable after
Congress completes action on any discretionary
appropriation, CBO, after consultation with the
Committees on the Budget of the House of Representatives
and the Senate, shall provide OMB with an estimate of
the amount of discretionary new budget authority and
outlays for the current year, if any, and the budget
year provided by that legislation.
``(B) OMB estimates and explanation of
differences.--Not <> 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.

[[Page 243]]

``(2) Sequestration reports.--When OMB submits a
sequestration report under section 254(e), (f), or (g) for a
fiscal year, OMB shall calculate, and the sequestration report
and subsequent budgets submitted by the President under section
1105(a) of title 31, United States Code, shall include
adjustments to discretionary spending limits (and those limits
as adjusted) for the fiscal year and each succeeding year, as
follows:
``(A) Emergency appropriations; overseas contingency
operations/global war on terrorism.--If, for any fiscal
year, appropriations for discretionary accounts are
enacted that--
``(i) the Congress designates as emergency
requirements in statute on an account by account
basis and the President subsequently so
designates, or
``(ii) the Congress designates for Overseas
Contingency Operations/Global War on Terrorism in
statute on an account by account basis and the
President subsequently so designates,
the adjustment shall be the total of such appropriations
in discretionary accounts designated as emergency
requirements or for Overseas Contingency Operations/
Global War on Terrorism, as applicable.
``(B) Continuing disability reviews and
redeterminations.--(i) If a bill or joint resolution
making appropriations for a fiscal year is enacted that
specifies an amount for continuing disability reviews
under titles II and XVI of the Social Security Act and
for the cost associated with conducting redeterminations
of eligibility under title XVI of the Social Security
Act, then the adjustments for that fiscal year shall be
the additional new budget authority provided in that Act
for such expenses for that fiscal year, but shall not
exceed--
``(I) for fiscal year 2012, $623,000,000 in
additional new budget authority;
``(II) for fiscal year 2013, $751,000,000 in
additional new budget authority;
``(III) for fiscal year 2014, $924,000,000 in
additional new budget authority;
``(IV) for fiscal year 2015, $1,123,000,000 in
additional new budget authority;
``(V) for fiscal year 2016, $1,166,000,000 in
additional new budget authority;
``(VI) for fiscal year 2017, $1,309,000,000 in
additional new budget authority;
``(VII) for fiscal year 2018, $1,309,000,000
in additional new budget authority;
``(VIII) for fiscal year 2019, $1,309,000,000
in additional new budget authority;
``(IX) for fiscal year 2020, $1,309,000,000 in
additional new budget authority; and
``(X) for fiscal year 2021, $1,309,000,000 in
additional new budget authority.
``(ii) <> As used in this
subparagraph--
``(I) the term `continuing disability reviews'
means continuing disability reviews under sections
221(i) and 1614(a)(4) of the Social Security Act;

[[Page 244]]

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

[[Page 245]]

year was less than the average as
calculated in subclause (I) for that
fiscal year, that is the difference
between the enacted amount and the
allowable adjustment as calculated in
such subclause for that fiscal year.
``(ii) OMB shall report to the Committees on
Appropriations and Budget in each House the
average calculated pursuant to clause (i)(II), not
later than 30 days after the date of the enactment
of the Budget Control Act of 2011.
``(iii) <> 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).

[[Page 246]]

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

Section 254 of the Balanced Budget and Emergency Deficit Control Act
of 1985 <> 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

[[Page 247]]

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

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

[[Page 248]]

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

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

[[Page 249]]

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

(c) Senate Pay-as-you-go Scorecard.--
(1) <> 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.

[[Page 250]]

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

[[Page 251]]

not more than 20 hours, which shall be divided equally between the
majority and minority leaders or their designees. A motion further to
limit debate is in order and not debatable. An amendment to, or a motion
to postpone, or a motion to proceed to the consideration of other
business, or a motion to recommit the joint resolution is not in order.
Any debatable motion or appeal is debatable for not to exceed 1 hour, to
be divided equally between those favoring and those opposing the motion
or appeal. All time used for consideration of the joint resolution,
including time used for quorum calls and voting, shall be counted
against the total 20 hours of consideration.
(3) If the <> 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

[[Page 252]]

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

``(b) Joint Resolution of Disapproval.--
``(1) In general.--Except <> 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

[[Page 253]]

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

``(c) Expedited Consideration in House of Representatives.--
``(1) Reconvening.--
Upon <> 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.--

[[Page 254]]

``(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.

[[Page 255]]

``(3) Treatment of companion measures.--If, following
passage of the joint resolution in the Senate, the Senate then
receives the companion measure from the House of
Representatives, the companion measure shall not be debatable.
``(4) Consideration after passage.--(A) If Congress passes a
joint resolution, the period beginning on the date the President
is presented with the joint resolution and ending on the date
the President signs, allows to become law without his signature,
or vetoes and returns the joint resolution (but excluding days
when either House is not in session) shall be disregarded in
computing the appropriate calendar day period described in
subsection (b)(1).
``(B) Debate on a veto message in the Senate under this
section shall be 1 hour equally divided between the majority and
minority leaders or their designees.
``(5) Veto override.--If within the appropriate calendar day
period described in subsection (b)(1), Congress overrides a veto
of the joint resolution with respect to authority exercised
pursuant to paragraph (1) or (2) of subsection (a), the limit on
debt provided in section 3101(b) shall not be raised, except for
the $400,000,000,000 increase in the limit provided by
subsection (a)(1)(A).
``(6) Sequestration.--(A) If <> 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.''.

[[Page 256]]

SEC. 302. ENFORCEMENT OF BUDGET GOAL.

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

[[Page 257]]

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

[[Page 258]]

``(i) taking the total reduction for
nondefense functions allocated for that year under
paragraph (4);
``(ii) multiplying by the discretionary
spending limit for the revised nonsecurity
category for that year; and
``(iii) dividing by the sum of the
discretionary spending limit for the revised
nonsecurity category and OMB's baseline estimate
of nonexempt outlays for direct spending programs
in nondefense functions for that year.
``(B) Direct spending.--OMB shall calculate the
reduction to direct spending programs by taking the
total reduction for nondefense functions required for
that year under paragraph (4) and subtracting the
discretionary reduction calculated pursuant to
subparagraph (A).
``(7) Implementing discretionary reductions.--
``(A) Fiscal year 2013.--On <> 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

[[Page 259]]

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

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

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

TITLE IV--JOINT SELECT COMMITTEE ON DEFICIT REDUCTION

SEC. 401. <> 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.--

[[Page 260]]

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

[[Page 261]]

(ii) The minority leader of the Senate shall
appoint three members from among Members of the
Senate.
(iii) The Speaker of the House of
Representatives shall appoint three members from
among Members of the House of Representatives.
(iv) The minority leader of the House of
Representatives shall appoint three members from
among Members of the House of Representatives.
(C) Co-chairs.--
(i) In general.--
There <> shall be two Co-
Chairs of the joint committee. The majority leader
of the Senate shall appoint one Co-Chair from
among the members of the joint committee. The
Speaker of the House of Representatives shall
appoint the second Co-Chair from among the members
of the joint <> 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

[[Page 262]]

interest payment on the debt). In addition, the
Congressional Budget Office shall provide
information on the budgetary effect of the
legislation beyond the year
2021. <> 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.

[[Page 263]]

(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

[[Page 264]]

referred to the committee or committees of jurisdiction, which
committees shall report the bill without any revision and with a
favorable recommendation, an unfavorable recommendation, or
without recommendation, not later than December 9, 2011. If any
committee fails to report the bill within that period, that
committee shall be automatically discharged from consideration
of the bill, and the bill shall be placed on the appropriate
calendar.
(2) Motion to proceed.--
Notwithstanding <> 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

[[Page 265]]

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

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

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

(g) Loss of Privilege.--The <> 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,

[[Page 266]]

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

TITLE V--PELL GRANT AND STUDENT LOAN PROGRAM CHANGES

SEC. 501. FEDERAL PELL GRANTS.

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

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

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

[[Page 267]]

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

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

Approved August 2, 2011.

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

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