[Congressional Record (Bound Edition), Volume 156 (2010), Part 1]
[Senate]
[Pages 567-577]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3303. Mr. COBURN (for himself, Mr. McCain, Mr. Enzi, and Mr. 
Lemieux) submitted an amendment intended to be proposed by him to the 
joint resolution H.J. Res. 45, increasing the statutory limit on the 
public debt; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

       TITLE __--ELIMINATION OF DUPLICATIVE AND WASTEFUL SPENDING

     SEC. 1. IDENTIFICATION, CONSOLIDATION, AND ELIMINATION OF 
                   DUPLICATIVE GOVERNMENT PROGRAMS.

       The Comptroller General of the Government Accountability 
     Office shall conduct routine investigations to identify 
     programs, agencies, offices, and initiatives with duplicative 
     goals and activities within Departments and governmentwide 
     and report annually to Congress on the findings, including 
     the cost of such duplication and with recommendations for 
     consolidation and elimination to reduce duplication 
     identifying specific rescissions.

     SEC. 2. REPEAL OF INCREASE OF THE OFFICE BUDGETS OF MEMBERS 
                   OF CONGRESS.

       Of the funds made available under Public Law 111-68 for the 
     legislative branch, $245,000,000 in unobligated balances are 
     permanently rescinded: Provided, That none of the funding 
     available for the Legislative Branch be available for any 
     pilot program for mailings of postal patron postcards by 
     Senators for the purpose of providing notice of a town 
     meeting by a Senator in a county (or equivalent unit of local 
     government) at which the Senator will personally attend.

     SEC. 3. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF WASTEFUL 
                   SPENDING, AND CONSOLIDATION OF DUPLICATIVE 
                   PROGRAMS AT THE DEPARTMENT OF AGRICULTURE.

       Of the funds made available under Public Law 111-80 for the 
     Department of Agriculture, $1,342,800,000 in unobligated 
     balances are permanently rescinded: Provided, That as 
     proposed by the President's FY 2010 budget, no funding may be 
     available for the Economic Action Program, which is 
     duplicative of USDA's Urban and Community Forestry program, 
     has been poorly managed, and has funded questionable 
     initiatives such as music festivals:  Provided further, That 
     no funding may be available for the High Energy Cost grant 
     program, which is duplicative of the $6,000,000,000 in low 
     interest loan programs offered by the UDSA's Rural Utilities 
     Service: Provided further, That as included in the 
     Congressional Budget Office's

[[Page 568]]

     August 2009 Budget Options document, which states that the 
     program ``merely replaces private spending with public 
     spending'', no funding may be available for the Foreign 
     Market Development Program, which also duplicates the Foreign 
     Agricultures Service's Market Access Program: Provided 
     further, That the Secretary shall consolidate and reduce the 
     cost of administering the numerous programs administered by 
     the Department relating to encouraging conservation, 
     including the Conservation Stewardship Program, which the 
     Government Accountability Office revealed in 2006 is 
     duplicative of other USDA conservations efforts, including 
     the Conservation Reserve Program, the Wetlands Reserve 
     Program, the Farmland Protection Program, the Wildlife 
     Habitat Program, and the Grassland Reserve Program: Provided 
     further, That the Secretary shall work with the Secretary of 
     Energy to consolidate and reduce the cost of administering 
     the numerous programs administered by both Departments 
     relating to bioenergy promotion, including the Department of 
     Energy's Biomass Program, the Department of Agriculture's 
     Biomass Crop Assistance Program, the Biorefinery Program for 
     Advanced Fuels Program, and the Biobased Products and 
     Bioenergy Program, the Biorefinery Repowering Assistance 
     Program, the New Era Rural Technology Competitive Grants 
     Program, and the Feedstock Flexibility Program: Provided 
     further, That the Secretary shall work with the Secretary of 
     Energy to consolidate and reduce the cost of administering 
     the numerous programs administered by both Departments 
     relating to alternative energy, including the Department of 
     Energy's Geothermal Technology Program, Wind Energy Program, 
     and the Solar Energy Technologies Program, and the Department 
     of Agriculture's Rural Energy for America Program: the 
     Secretary shall consolidate and reduce the cost of 
     administering the numerous programs administered by the 
     Department that provide food assistance to foreign countries, 
     including the USAD Foreign Agricultural Service, the food for 
     Progress Program, the McGovern-Dole International Food for 
     Education and Child Nutrition Program, the food for Peace 
     programs, the Bill Emerson Humanitarian Trust, and the Local 
     and Regional Procurement Projects: Provided further, That for 
     any program for which funding is prohibited in this section, 
     any activities under that program that are deemed by the 
     Secretary to be necessary or essential, the Secretary shall 
     assign to an existing program for which funding is not 
     prohibited in this section.

     SEC. 4. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF WASTEFUL 
                   SPENDING, AND CONSOLIDATION OF DUPLICATIVE 
                   PROGRAMS AT THE DEPARTMENT OF COMMERCE.

       Of the funds made available under Public Law 111-117 for 
     the Department of Commerce, $697,850,000 in unobligated 
     balances are permanently rescinded: Provided, That the 
     Secretary shall work with the Secretary of Agriculture to 
     consolidate and reduce the cost of administering the programs 
     administered by both Departments that provide rural public 
     telecom grants, including eliminating USDA's grants to rural 
     public broadcasting stations, as proposed by the President's 
     FY 2010 budget, which duplicates the Department of Commerce's 
     Public Telecommunications Facilities Program, and the 
     Corporation for Public Broadcasting, which also receives 
     Federal funding: Provided further, That no funding may be 
     made available for the Hollings Manufacturing Extension 
     Partnership Program, which duplicates the Small Business 
     Administration's Small Business Development Centers and which 
     has been found by the Office of Management and Budget to 
     ``only serve a small percentage of small manufactures each 
     year'': Provided further, That the Secretary shall work with 
     the Secretaries of Housing and Rural Development and 
     Agriculture to consolidate and reduce the cost of 
     administering the programs administered by these Departments 
     relating to Economic Development, including the following 
     programs, the Economic Development Administration, the 
     Community Development Block Grants, Rural Development 
     Administration grants, the National Community Development 
     Initiative, the Brownfields Economic Development Initiative, 
     the Rural Housing and Economic Development grants, the 
     Community Service Block Grants, the Delta Regional Authority, 
     the Community Economic Development grants, and the 
     Historically Underutilized Business Zone program: Provided 
     further, That for any program for which funding is prohibited 
     in this section, any activities under that program that are 
     deemed by the Secretary to be necessary or essential, the 
     Secretary shall assign to an existing program for which 
     funding is not prohibited in this section.

     SEC. 5. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF WASTEFUL 
                   SPENDING, AND CONSOLIDATION OF DUPLICATIVE 
                   PROGRAMS AT THE DEPARTMENT OF EDUCATION.

       Of the funds made available under Public Law 111-117 for 
     the Department of Education, $3,213,800,000 in unobligated 
     balances are permanently rescinded: Provided, That the 
     Secretary shall work with Secretaries from other Federal 
     Departments to consolidate and reduce the cost of 
     administering the at least 30 Federal programs that provide 
     financial assistance to students to support postsecondary 
     education in the forms of grants, scholarships, fellowships, 
     and other types of stipends, including the 15 such programs 
     at the Department of Education, such as the Academic 
     Competitiveness Grants, the TEACH grants, the Federal 
     Supplemental Education Opportunity Grants, the Leveraging 
     Educational Assistance Program, the Javits Fellowships 
     Program, Graduate Assistance in Areas of National Need 
     program, as well as the three similar programs administered 
     by the National Science Foundation, such as the Robert Noyce 
     Teacher Scholarship program, as well as a program at the 
     Department of Justice and one at the Health Resources 
     Administration: Provided further, That the Secretary shall 
     work with Secretaries from other Federal Departments to 
     consolidate and reduce the cost of administering the at least 
     69 Federal programs dedicated in full or in part to 
     supporting early childhood education and child care, as 
     outlined by the Government Accountability Office, which found 
     that these 69 education programs are spread across 10 
     different agencies: Provided further, That the Secretary 
     shall work with Secretaries from other Federal Departments to 
     consolidate and reduce the cost of administering the at least 
     105 Federal science, technology, math, and engineering 
     education programs, as outlined by the Academic 
     Competitiveness Council, which found that these 105 education 
     programs are spread across numerous Federal agencies: 
     Provided further, That the Secretary shall work with 
     Secretaries from other Federal Departments to consolidate and 
     reduce the cost of administering the numerous student foreign 
     exchange and international education programs, including the 
     at least 14 programs at the Department, including the 
     American Overseas Research Centers, Business and 
     International Education, Centers for International Business 
     Education, the Foreign Language and Area Studies Fellowships, 
     the Institute for International Public Policy, the 
     International Research and Studies, the Language Resource 
     Centers, the National Resource Centers, the Technological 
     Innovation and Cooperation for Foreign Information Access, 
     and the Undergraduate International Studies and Foreign 
     Language Program, the State Department's Benjamin A. Gilman 
     International Scholarship Program, the Boren National 
     Security Education Trust Fund, and exchange programs 
     administered by the National Science Foundation's Office of 
     International Science and Engineering.

     SEC. 6. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF WASTEFUL 
                   SPENDING, AND CONSOLIDATION OF DUPLICATIVE 
                   PROGRAMS AT THE DEPARTMENT OF ENERGY.

       Of the funds made available under Public Law 111-85 for the 
     Department of Energy, $1,321,800,000 in unobligated balances 
     are permanently rescinded: Provided, That the Secretary shall 
     work with Secretaries from other Federal Departments to 
     consolidate and reduce the cost of administering the various 
     Federal weatherization efforts, including Federal funding for 
     State-run weatherization projects, the Department of Energy's 
     Energy Conservation and Weatherization grants, as well as the 
     Department of Energy's building Technologies Program, the 
     LIHEAP weatherization efforts, the National Park Service's 
     Weatherization and Improving the Energy Efficiency of 
     Historic Buildings program, and the Department of Housing and 
     Urban Development's Energy Innovation Fund: Provided further, 
     That the Secretary shall consolidate and reduce the cost of 
     administering the various energy grant programs, including 
     the Tribal Energy grant program, which overlaps with the 
     Department's Energy Efficiency and Conservation Block Grants, 
     and the Energy Start Energy Efficient appliance Rebate 
     Program: Provided further, That the Secretary shall 
     consolidate and reduce the cost of administering the various 
     vehicle technology programs at the Department, including the 
     Vehicle Technologies program, the Advanced Battery 
     Manufacturing grants, the Advanced Technology Vehicles 
     Manufacturing Loans Program, and the Innovative Technology 
     Loan Guarantee Program.

     SEC. 7. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF WASTEFUL 
                   SPENDING, AND CONSOLIDATION OF DUPLICATIVE 
                   PROGRAMS AT THE DEPARTMENT OF HEALTH AND HUMAN 
                   SERVICES.

       Of the funds made available under Public Law 111-117 for 
     the Department of Health and Human Services, $4,116,950,000 
     in unobligated balances are permanently rescinded: Provided, 
     That the Secretary, in coordination with the heads of other 
     Departments and agencies, shall consolidate the programs that 
     support nonresidential buildings and facilities construction, 
     including the 29 programs across 8 Federal agencies 
     identified by the Government Accountability Office. The 
     Secretary, in coordination with the Secretary of HUD and USDA 
     and other appropriate departments and agencies, shall 
     consolidate duplicative programs intended to reduce poverty 
     and revitalize low-income communities, including the HHS 
     Community Services Block Grant, the HUD Community Development 
     Block Grant, and USDA Rural Development program: Provided 
     further, That the Secretary shall work with Secretaries

[[Page 569]]

     from other Federal Departments to consolidate and reduce the 
     cost of administering the dozens of Federal programs, across 
     multiple agencies, that funded childhood obesity programs, 
     either as the main focus or as one component of the Federal 
     program.

     SEC. 8. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF WASTEFUL 
                   SPENDING, AND CONSOLIDATION OF DUPLICATIVE 
                   PROGRAMS AT THE DEPARTMENT OF HOMELAND 
                   SECURITY.

       Of the funds made available under Public Law 111-83 for the 
     Department of Homeland Security, $2,205,000,000 in 
     unobligated balances are permanently rescinded: Provided, 
     That the Secretary shall work with Secretaries from other 
     Federal Departments to consolidate and reduce the cost of 
     administering the dozens of Federal homeland security 
     programs, as identified by the Office of Management and 
     Budget, which states that ``a total of 31 agency budgets 
     include Federal homeland security funding in 2010''.

     SEC. 9. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF WASTEFUL 
                   SPENDING, AND CONSOLIDATION OF DUPLICATIVE 
                   PROGRAMS AT THE DEPARTMENT OF HOUSING AND URBAN 
                   DEVELOPMENT.

       Of the funds made available under Public Law 111-117 for 
     the Department of Housing and Urban Development, 
     $2,302,450,000 in unobligated balances are permanently 
     rescinded: Provided, That the Secretary shall work with 
     Secretaries from other Federal Departments to consolidate and 
     reduce the cost of administering the various Federal programs 
     aimed at addressing homelessness, including the Supportive 
     Housing Program, the Shelter Plus Care Program, the Single 
     Room Occupancy Program, the Emergency Shelter Grant Program, 
     programs at Health and Human Services such as the Basic 
     Center Program, Projects for Assistance in Transition from 
     Homelessness, and the Street Outreach Program, and also 
     including the more than 23 housing programs identified by the 
     Government Accounting Office that target or have special 
     features for the elderly.

     SEC. 10. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   INTERIOR.

       Of the funds made available under Public Law 111-88 for the 
     Department of Interior, $606,200,000 in unobligated balances 
     are permanently rescinded: Provided, That the Secretary shall 
     consolidate and reduce the cost of administering the at least 
     11 historic preservation programs at the Department, 
     including the 9 preservation programs at the Heritage 
     Preservation Services, such as the Federal Agency 
     Preservation Assistance Program, the Historic Preservation 
     Planning Program, the Technical Preservation Services for 
     Historic Buildings, as well as the Save America's Treasures 
     Grant Program, the Advisory Council on Historic Preservation, 
     and the Preserve America program: Provided further, That the 
     Secretary shall consolidate and reduce the cost of 
     administering the various climate change impact programs at 
     the Department, including the Bureau of Indian Affairs office 
     Tackling Climate Impacts Initiative, the U.S. Geological 
     Survey's National Climate Change and Wildlife Science Center, 
     the US Fish and Wildlife Service climate change initiatives, 
     and the state and tribal wildlife conservation grants which 
     are being provided to entities to adapt and mitigate the 
     impacts of climate change on wildlife: Provided further, That 
     the Secretary shall consolidate and reduce the cost of 
     administering the dozens of invasive species research, 
     monitoring, and eradication programs at the Department, 
     including the eight programs administered by the US Fish and 
     Wildlife Services, the similar programs administered by the 
     Bureau of Land Management, the National Park Service, and the 
     4 Federal councils created to coordinate Federal invasive 
     species efforts, the National Invasive Species Council, the 
     National Invasive Species Information Center, the Federal 
     Interagency Committee for the Management of Noxious and 
     Exotic Weeds, and the Aquatic Nuisance Species Task Force.

     SEC. 11. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   JUSTICE.

       Of the funds made available under Public Law 111-117 for 
     the Department of Justice, $1,385,100,000 in unobligated 
     balances are permanently rescinded: Provided, That the 
     Attorney General in coordination with the heads of other 
     Departments and agencies, shall consolidate Federal offender 
     reentry programs, including those authorized by the Second 
     Chance Act, the DOJ Office of Justice Programs Bureau of 
     Justice Assistance Prisoner Reentry Initiative, the 
     Department of Labor Reintegration of Ex-Offenders program, 
     the Department of Education Lifeskills for State and Local 
     Inmates Programs, and the HHS Young Offender Reentry Program: 
     Provided further, That the Attorney General shall consolidate 
     the four duplicative grant programs, including the State 
     Formula Grant program, the Juvenile Delinquency Prevention 
     Block Grant program, the Challenge/Demonstration Grant 
     program, and the Title V grant program, administered under 
     the Juvenile Justice and Delinquency Prevention Act and 
     reduce the cost of administering such programs: Provided 
     further, That the Attorney General, in coordination with the 
     Secretary of Health and Human Services (HHS) and the Office 
     of National Drug Control Policy (ONDCP), shall consolidate 
     Federal programs that assist state drug courts, including 
     substance abuse treatment services for offenders, such as the 
     HHS Adult, Juvenile, and Family Drug Court program, the 
     Substance Abuse and Mental Health Services Administration 
     Drug Court Treatment Program, the DOJ Drug Court Program, the 
     ONDCP National Drug Court Institute: Provided further, That 
     the Attorney General shall eliminate the National Drug 
     Intelligence Center (NDIC) which duplicates the activities of 
     19 other drug intelligence centers and reassign any essential 
     duties performed by NDIC.

     SEC. 12. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   LABOR.

       Of the funds made available under Public Law 111-117 for 
     the Department of Labor, $679,100,000 in unobligated balances 
     are permanently rescinded: Provided, That the Secretary, in 
     coordination with the heads of other Departments and 
     agencies, shall consolidate the 18 programs administered by 
     the Department and ten programs administered by other 
     agencies that support job training and employment, such as 
     the Adult Employment and Training Activities program, 
     Dislocated Worked Employment and Training Activities, Youth 
     Activities, YouthBuild, and the Migrant and Seasonal Farmers 
     program and reduce the cost of administering such programs.

     SEC. 13. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   STATE.

       Of the funds made available under Public Law 111-117 for 
     the Department of State, $1,318,550,000 in unobligated 
     balances are permanently rescinded: Provided, That in 
     accordance with the President's FY 2010 budget, no funding 
     may be made available for the Center for Cultural and 
     Technical Interchange Between East and West, which duplicates 
     the State Departments cultural exchanges: Provided further, 
     That no funding may be made available for the Asia 
     Foundation, which duplicates efforts at USAID and the 
     National Endowment for Democracy: Provided further, That for 
     any program for which funding is prohibited in this section, 
     any activities under that program that are deemed by the 
     Secretary to be necessary or essential, the Secretary shall 
     assign to an existing program for which funding is not 
     prohibited in this section.

     SEC. 14. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   TRANSPORTATION.

       Of the funds made available under Public Law 111-117 for 
     the Department of Transportation, $1,090,500,000 in 
     unobligated balances are permanently rescinded: Provided, 
     That the Secretary shall consolidate and reduce the costs of 
     various duplicative highway programs, including the 
     regionally specific development programs, the Federal-Aid 
     Highway Programs under chapter I of title 23, United States 
     Code, the Research programs authorized under title V of 
     Public Law 109-59: Provided further, That the Secretary shall 
     consolidate and reduce the costs of various rail-line 
     relocation grant programs, including the Rail-Line Relocation 
     and Improvement Capital Program, and the Highway-Rail 
     Crossings Program, the Railroad Rehabilitation and 
     Improvement Financing program.

     SEC. 15. REPEAL OF EXCESSIVE OVERHEAD, ELIMINATION OF 
                   WASTEFUL SPENDING, AND CONSOLIDATION OF 
                   DUPLICATIVE PROGRAMS AT THE DEPARTMENT OF 
                   TREASURY.

       Of the funds made available under Public Law 111-117 for 
     the Department of Treasury, $677,650,000 in unobligated 
     balances are permanently rescinded.

     SEC. 16. RESCISSION OF UNSPENT AND UNCOMMITTED FEDERAL FUNDS.

       Notwithstanding any other provision of law, of the 
     $657,000,000,000 in Federal funds unobligated at the end of 
     fiscal year 2009, the discretionary, unexpired funds 
     available for more than 2 consecutive fiscal years, as of the 
     date of enactment of this Act, are permanently rescinded.

     SEC. 17. IMPLEMENTATION OF RESCISSIONS.

       All rescissions required by this title--
       (1) shall come from discretionary amounts appropriated; and
       (2) should be rescinded not later 14 days after the date of 
     enactment of this title.

     SEC. 18. NULLIFICATION OF INCREASE IN THE STATUTORY LIMIT ON 
                   THE PUBLIC DEBT.

       Notwithstanding any other provision of this Act, any 
     increase in the statutory limit on the public debt shall be 
     null and void.
                                 ______
                                 
  SA 3304. Mr. SESSIONS (for himself, Mrs. McCaskill, and Mr. Kyl) 
submitted an amendment intended to be proposed by him to the joint 
resolution H.J. Res. 45, increasing the statutory

[[Page 570]]

limit on the public debt; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. _01. DISCRETIONARY SPENDING LIMITS.

       (a) In General.--Title III of the Congressional Budget Act 
     of 1974 is amended by inserting at the end the following:


                    ``discretionary spending limits

       ``Sec. 316.  (a) Discretionary Spending Limits.--It shall 
     not be in order in the House of Representatives or the Senate 
     to consider any bill, joint resolution, amendment, or 
     conference report that includes any provision that would 
     cause the discretionary spending limits as set forth in this 
     section to be exceeded.
       ``(b) Limits.--In this section, the term `discretionary 
     spending limits' has the following meaning subject to 
     adjustments in subsection (c):
       ``(1) For fiscal year 2010--
       ``(A) for the defense category (budget function 050), 
     $556,128,000,000 in budget authority; and
       ``(B) for the nondefense category, $526,122,000,000 in 
     budget authority.
       ``(2) For fiscal year 2011--
       ``(A) for the defense category (budget function 050), 
     $564,293,000,000 in budget authority; and
       ``(B) for the nondefense category, $529,662,000,000 in 
     budget authority.
       ``(3) For fiscal year 2012--
       ``(A) for the defense category (budget function 050), 
     $573,612,000,000 in budget authority; and
       ``(B) for the nondefense category, $533,232,000,000 in 
     budget authority.
       ``(4) For fiscal year 2013--
       ``(A) for the defense category (budget function 050), 
     $584,421,000,000 in budget authority; and
       ``(B) for the nondefense category, $540,834,000,000 in 
     budget authority.
       ``(5) For fiscal year 2014--
       ``(A) for the defense category (budget function 050), 
     $598,249,000,000 in budget authority; and
       ``(B) for the nondefense category, $550,509,000,000 in 
     budget authority.
       ``(6) With respect to fiscal years following 2014, the 
     President shall recommend and the Congress shall consider 
     legislation setting limits for those fiscal years.
       ``(c) Adjustments.--
       ``(1) In general.--After the reporting of a bill or joint 
     resolution relating to any matter described in paragraph (2), 
     or the offering of an amendment thereto or the submission of 
     a conference report thereon--
       ``(A) the Chairman of the Senate Committee on the Budget 
     may adjust the discretionary spending limits, the budgetary 
     aggregates in the concurrent resolution on the budget most 
     recently adopted by the Senate and the House of 
     Representatives, and allocations pursuant to section 302(a) 
     of the Congressional Budget Act of 1974, by the amount of new 
     budget authority in that measure for that purpose and the 
     outlays flowing there from; and
       ``(B) following any adjustment under subparagraph (A), the 
     Senate Committee on Appropriations may report appropriately 
     revised suballocations pursuant to section 302(b) of the 
     Congressional Budget Act of 1974 to carry out this 
     subsection.
       ``(2) Matters described.--Matters referred to in paragraph 
     (1) are as follows:
       ``(A) Overseas deployments and other activities.--If a bill 
     or joint resolution is reported making appropriations for 
     fiscal year 2010, 2011, 2012, 2013, or 2014, that provides 
     funding for overseas deployments and other activities, the 
     adjustment for purposes paragraph (1) shall be the amount of 
     budget authority in that measure for that purpose but not to 
     exceed--
       ``(i) with respect to fiscal year 2010, $130,000,000,000 in 
     new budget authority;
       ``(ii) with respect to fiscal year 2011, $50,000,000,000 in 
     new budget authority;
       ``(iii) with respect to fiscal year 2012, $50,000,000,000 
     in new budget authority;
       ``(iv) with respect to fiscal year 2013, $50,000,000,000 in 
     new budget authority: and
       ``(v) with respect to fiscal year 2014, $50,000,000,000 in 
     new budget authority.
       ``(B) Emergency spending.--For fiscal year 2010, 2011, 
     2012, 2013, or 2014 for appropriations for discretionary 
     accounts designated as emergency requirements, the adjustment 
     for purposes of paragraph (1) shall be the total of such 
     appropriations in discretionary accounts designated as 
     emergency requirements, but not to exceed $10,350,000,000 for 
     fiscal year 2010, $10,454,000,000 for 2011, $10,558,000,000 
     for 2012, $10,664,000,000 for 2013, and $10,877,000,000 for 
     2014. Appropriations designated as emergencies in excess of 
     these limitations shall be treated as new budget authority.
       ``(C) Internal revenue service tax enforcement.--
       ``(i) In general.--If a bill or joint resolution is 
     reported making appropriations for fiscal year 2010, 2011, 
     2012, 2013, or 2014 that includes the amount described in 
     clause (ii)(I), plus an additional amount for enhanced tax 
     enforcement to address the Federal tax gap (taxes owed but 
     not paid) described in clause (ii)(II), the adjustment for 
     purposes of paragraph (1) shall be the amount of budget 
     authority in that measure for that initiative not exceeding 
     the amount specified in clause (ii)(II) for that fiscal year.
       ``(ii) Amounts.--The amounts referred to in clause (i) are 
     as follows:

       ``(I) For fiscal year 2010, $7,100,000,000, for fiscal year 
     2011, $7,171,000,000, for fiscal year 2012, $7,243,000,000, 
     for fiscal year 2013, $7,315,000,000, and for fiscal year 
     2014, $7,461,000,000.
       ``(II) For fiscal year 2010, $890,000,000, for fiscal year 
     2011, $899,000,000, for fiscal year 2012, $908,000,000, for 
     fiscal year 2013, $917,000,000, and for fiscal year 2014, 
     $935,000,000.

       ``(D) Continuing disability reviews and ssi 
     redeterminations.--
       ``(i) In general.--If a bill or joint resolution is 
     reported making appropriations for fiscal year 2010, 2011, 
     2012, 2013, or 2014 that includes the amount described in 
     clause (ii)(I), plus an additional amount for Continuing 
     Disability Reviews and Supplemental Security Income 
     Redeterminations for the Social Security Administration 
     described in clause (ii)(II), the adjustment for purposes of 
     paragraph (1) shall be the amount of budget authority in that 
     measure for that initiative not exceeding the amount 
     specified in clause (ii)(II) for that fiscal year.
       ``(ii) Amounts.--The amounts referred to in clause (i) are 
     as follows:

       ``(I) For fiscal year 2010, $273,000,000; for fiscal year 
     2011, $276,000,000; for fiscal year 2012, $278,000,000; for 
     fiscal year 2013, $281,000,000; for fiscal year 2014, 
     $287,000,000.
       ``(II) For fiscal year 2010, $485,000,000; for fiscal year 
     2011, $490,000,000; for fiscal year 2012, $495,000,000; for 
     fiscal year 2013, $500,000,000; for fiscal year 2014, 
     $510,000,000.

       ``(iii) Asset verification.--

       ``(I) In general.--The additional appropriation permitted 
     under clause (ii)(II) may also provide that a portion of that 
     amount, not to exceed the amount specified in subclause (II) 
     for that fiscal year instead may be used for asset 
     verification for Supplemental Security Income recipients, but 
     only if, and to the extent that the Office of the Chief 
     Actuary estimates that the initiative would be at least as 
     cost effective as the redeterminations of eligibility 
     described in this subparagraph.
       ``(II) Amounts.--For fiscal year 2010, $34,000,000, for 
     fiscal year 2011, $34,340,000, for fiscal year 2012, 
     $34,683,000, for fiscal year 2013, $35,030,000 and for fiscal 
     year 2014, $35,731,000.

       ``(E) Health care fraud and abuse.--
       ``(i) In general.--If a bill or joint resolution is 
     reported making appropriations for fiscal year 2010, 2011, 
     2012, 2013, or 2014 that includes the amount described in 
     clause (ii) for the Health Care Fraud and Abuse Control 
     program at the Department of Health & Human Services for that 
     fiscal year, the adjustment for purposes of paragraph (1) 
     shall be the amount of budget authority in that measure for 
     that initiative but not to exceed the amount described in 
     clause (ii).
       ``(ii) Amount.--The amount referred to in clause (i) is for 
     fiscal year 2010, $311,000,000, for fiscal year 2011, 
     $314,000,000, for fiscal year 2012, $317,000,000, for fiscal 
     year 2013, $320,000,000, and for fiscal year 2014, 
     $327,000,000.
       ``(F) Unemployment insurance improper payment reviews.--If 
     a bill or joint resolution is reported making appropriations 
     for fiscal year 2010, 2011, 2012, 2013, or 2014 that includes 
     $10,000,000, plus an additional amount for in-person 
     reemployment and eligibility assessments and unemployment 
     improper payment reviews for the Department of Labor, the 
     adjustment for purposes paragraph (1) shall be the amount of 
     budget authority in that measure for that initiative but not 
     to exceed--
       ``(i) with respect to fiscal year 2010, $50,000,000 in new 
     budget authority;
       ``(ii) with respect to fiscal year 2011, $51,000,000 in new 
     budget authority; and
       ``(iii) with respect to fiscal year 2012, $51,000,000 in 
     new budget authority.
       ``(iv) with respect to fiscal year 2013, $52,000,000 in new 
     budget authority; and
       ``(v) with respect to fiscal year 2014, $53,000,000 in new 
     budget authority.
       ``(G) Low-income home energy assistance program (liheap).--
     If a bill or joint resolution is reported making 
     appropriations for fiscal year 2010, 2011, 2012, 2013, or 
     2014 that includes $3,200,000,000 in funding for the Low-
     Income Home Energy Assistance Program and provides an 
     additional amount up to $1,900,000,000 for that program, the 
     adjustment for purposes of paragraph (1) shall be the amount 
     of budget authority in that measure for that initiative but 
     not to exceed $1,900,000,000.
       ``(d) Emergency Spending.--
       ``(1) Authority to designate.--In the Senate, with respect 
     to a provision of direct spending or receipts legislation or 
     appropriations for discretionary accounts that Congress 
     designates as an emergency requirement in such measure, the 
     amounts of new budget authority, outlays, and receipts in all 
     fiscal years resulting from that provision shall be treated 
     as an emergency requirement for the purpose of this 
     subsection.
       ``(2) Exemption of emergency provisions.--Subject to the 
     limitations provided in subsection (c)(2)(B), any new budget 
     authority, outlays, and receipts resulting from any provision 
     designated as an emergency requirement, pursuant to this 
     subsection, in

[[Page 571]]

     any bill, joint resolution, amendment, or conference report 
     shall not count for purposes of sections 302 and 311 of the 
     Congressional Budget Act of 1974, section 201 of S. Con. Res. 
     21 (110th Congress) (relating to pay-as-you-go), and section 
     311 of S. Con. Res. 70 (110th Congress) (relating to long-
     term deficits). Designated emergency provisions shall not 
     count for the purpose of revising allocations, aggregates, or 
     other levels pursuant to procedures established under section 
     301(b)(7) of the Congressional Budget Act of 1974 for 
     deficit-neutral reserve funds and revising discretionary 
     spending limits set pursuant to this section.
       ``(3) Designations.--If a provision of legislation is 
     designated as an emergency requirement under this subsection, 
     the committee report and any statement of managers 
     accompanying that legislation shall include an explanation of 
     the manner in which the provision meets the criteria in 
     paragraph (6).
       ``(4) Definitions.--In this subsection, the terms `direct 
     spending', `receipts', and `appropriations for discretionary 
     accounts' mean any provision of a bill, joint resolution, 
     amendment, motion, or conference report that affects direct 
     spending, receipts, or appropriations as those terms have 
     been defined and interpreted for purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985.
       ``(5) Point of order.--
       ``(A) In general.--When the Senate is considering a bill, 
     resolution, amendment, motion, or conference report, if a 
     point of order is made by a Senator against an emergency 
     designation in that measure, that provision making such a 
     designation shall be stricken from the measure and may not be 
     offered as an amendment from the floor.
       ``(B) Supermajority waiver and appeals.--
       ``(i) Waiver.--Subparagraph (A) may be waived or suspended 
     in the Senate only by an affirmative vote of three-fifths of 
     the Members, duly chosen and sworn.
       ``(ii) Appeals.--Appeals in the Senate from the decisions 
     of the Chair relating to any provision of this paragraph 
     shall be limited to 1 hour, to be equally divided between, 
     and controlled by, the appellant and the manager of the bill 
     or joint resolution, as the case may be. An affirmative vote 
     of three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this paragraph.
       ``(C) Definition of an emergency designation.--For purposes 
     of subparagraph (A), a provision shall be considered an 
     emergency designation if it designates any item as an 
     emergency requirement pursuant to this paragraph.
       ``(D) Form of the point of order.--A point of order under 
     subparagraph (A) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       ``(E) Conference reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this paragraph, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this subsection), no further amendment shall be 
     in order.
       ``(6) Criteria.--
       ``(A) In general.--For purposes of this subsection, any 
     provision is an emergency requirement if the situation 
     addressed by such provision is--
       ``(i) necessary, essential, or vital (not merely useful or 
     beneficial);
       ``(ii) sudden, quickly coming into being, and not building 
     up over time;
       ``(iii) an urgent, pressing, and compelling need requiring 
     immediate action;
       ``(iv) subject to clause (ii), unforeseen, unpredictable, 
     and unanticipated; and
       ``(v) not permanent, temporary in nature.
       ``(7) Unforeseen.--An emergency that is part of an 
     aggregate level of anticipated emergencies, particularly when 
     normally estimated in advance, is not unforeseen.
       ``(e) Limitations on Changes to Exemptions.--It shall not 
     be in order in the Senate or the House of Representatives to 
     consider any bill, resolution, amendment, or conference 
     report that would exempt any new budget authority, outlays, 
     and receipts from being counted for purposes of this section.
       ``(f) Point of Order in the Senate.--
       ``(1) Waiver.--The provisions of this section shall be 
     waived or suspended in the Senate only--
       ``(A) by the affirmative vote of two-thirds of the Members, 
     duly chosen and sworn; or
       ``(B) in the case of the defense budget authority, if 
     Congress declares war or authorizes the use of force.
       ``(2) Appeal.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this section shall be 
     limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the measure. 
     An affirmative vote of two-thirds of the Members of the 
     Senate, duly chosen and sworn, shall be required to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
       ``(3) Limitations on changes to this subsection.--It shall 
     not be in order in the Senate or the House of Representatives 
     to consider any bill, resolution, amendment, or conference 
     report that would repeal or otherwise change this 
     subsection.''.
       (b) Table of Contents.--The table of contents set forth in 
     section 1(b) of the Congressional Budget and Impoundment 
     Control Act of 1974 is amended by inserting after the item 
     relating to section 315 the following new item:

``Sec. 316. Discretionary spending limits.''.
                                 ______
                                 
  SA 3305. Mr. REID proposed an amendment to amendment SA 3299 proposed 
by Mr. Baucus (for Mr. Reid) to the joint resolution H.J. Res. 45, 
increasing the statutory limit on the public debt; as follows:

       At the appropriate place insert the following:

             TITLE __--STATUTORY PAY-AS-YOU-GO ACT OF 2010

     SEC. 1. SHORT TITLE.

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

     SEC. 2. PURPOSE.

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

     SEC. 3. DEFINITIONS AND APPLICATIONS.

       As used in this title--
       (1) The term ``BBEDCA'' means the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       (2) The definitions set forth in section 3 of the 
     Congressional Budget and Impoundment Control Act of 1974 and 
     in section 250 of BBEDCA shall apply to this title, except to 
     the extent that they are specifically modified as follows:
       (A) The term ``outyear'' means a fiscal year one or more 
     years after the budget year.
       (B) In section 250(c)(8)(C), the reference to the food 
     stamp program shall be deemed to be a reference to the 
     Supplemental Nutrition Assistance Program.
       (3) The term ``AMT'' means the Alternative Minimum Tax for 
     individuals under sections 55-59 of the Internal Revenue Code 
     of 1986, the term ``EGTRRA'' means the Economic Growth and 
     Tax Relief Reconciliation Act of 2001 (Public Law 107-16), 
     and the term ``JGTRRA'' means the Jobs and Growth Tax Relief 
     and Reconciliation Act of 2003 (Public Law 108-27).
       (4)(A) The term ``budgetary effects'' means the amount by 
     which PAYGO legislation changes outlays flowing from direct 
     spending or revenues relative to the baseline and shall be 
     determined on the basis of estimates prepared under section 
     4. Budgetary effects that increase outlays flowing from 
     direct spending or decrease revenues are termed ``costs'' and 
     budgetary effects that increase revenues or decrease outlays 
     flowing from direct spending are termed ``savings''. 
     Budgetary effects shall not include any costs associated with 
     debt service.
       (B) For purposes of these definitions, off-budget effects 
     shall not be counted as budgetary effects.
       (C) Solely for purposes of recording entries on a PAYGO 
     scorecard, provisions in appropriation Acts are also 
     considered to be budgetary effects for purposes of this title 
     if such provisions make outyear modifications to substantive 
     law, except that provisions for which the outlay effects net 
     to zero over a period consisting of the current year, the 
     budget year, and the 4 subsequent years shall not be 
     considered budgetary effects. For purposes of this paragraph, 
     the term, ``modifications to substantive law'' refers to 
     changes to or restrictions on entitlement law or other 
     mandatory spending contained in appropriations Acts, 
     notwithstanding section 250(c)(8) of BBEDCA. Provisions in 
     appropriations Acts that are neither outyear modifications to 
     substantive law nor changes in revenues have no budgetary 
     effects for purposes of this title.
       (5) The term ``debit'' refers to the net total amount, when 
     positive, by which costs recorded on the PAYGO scorecards for 
     a fiscal year exceed savings recorded on those scorecards for 
     that year.
       (6) The term ``entitlement law'' refers to a section of law 
     which provides entitlement authority.
       (7) The term ``PAYGO legislation'' or a ``PAYGO Act'' 
     refers to a bill or joint resolution that affects direct 
     spending or revenue relative to the baseline. The budgetary 
     effects of changes in revenues and outyear modifications to 
     substantive law included in appropriation Acts as defined in 
     paragraph (4) shall be treated as if they were contained in 
     PAYGO legislation or a PAYGO Act.
       (8) The term ``timing shift'' refers to a delay of the date 
     on which outlays flowing

[[Page 572]]

     from direct spending would otherwise occur from the ninth 
     outyear to the tenth outyear or an acceleration of the date 
     on which revenues would otherwise occur from the tenth 
     outyear to the ninth outyear.

     SEC. 4. PAYGO ESTIMATES AND PAYGO SCORECARDS.

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

       (I) the estimate required by clause (i) has not been 
     submitted prior to passage by that House;
       (II) such estimate has been submitted but is no longer 
     valid due to a subsequent amendment to the PAYGO Act; or
       (III) the designation required pursuant to this subsection 
     has not been made;

     the budgetary effects of the PAYGO Act shall be determined 
     under subsection (d)(3), provided that this clause shall not 
     apply if a valid designation is subsequently included in that 
     PAYGO Act pursuant to paragraph (1)(C) and a statement is 
     submitted pursuant to subparagraph (B).
       (B) Conference reports and amendments between houses.--
       (i) In general.--Prior to the adoption of a report of a 
     committee of conference on a PAYGO Act in either House, or 
     disposition of an amendment to an amendment between Houses on 
     a PAYGO Act, the Chairmen of the Budget Committees of the 
     House and Senate may jointly submit for printing in the 
     Congressional Record a statement titled ``Budgetary Effects 
     of PAYGO Legislation'' which shall include an estimate of the 
     budgetary effects of that Act if available prior to passage 
     of the Act by the House acting first on the legislation and 
     shall submit, if applicable, an identification of any current 
     policy adjustments made pursuant to section 7 of this title. 
     The timely submission of such a statement, in conjunction 
     with the appropriate designation made pursuant to paragraph 
     (1)(C), shall establish the budgetary effects of the PAYGO 
     Act for the purposes of this Act.
       (ii) Failure to submit estimate.--If such estimate has not 
     been submitted prior to the adoption of a report of a 
     committee of conference by either House, or if the 
     designation required pursuant to this subsection has not been 
     made, the budgetary effects of the PAYGO Act shall be 
     determined under subsection (d)(3).
       (3) Procedure in the senate.--In the Senate, upon 
     submission of a statement titled ``Budgetary Effects of PAYGO 
     Legislation'' by the Chairman of the Senate Budget Committee 
     for printing in the Congressional Record, the Legislative 
     Clerk shall read the statement.
       (4) Jurisdiction of the budget committees.--For the 
     purposes of enforcing section 306 of the Congressional Budget 
     Act of 1974, a designation made pursuant to paragraph (1)(A), 
     (1)(B), or (1)(C), that includes only the language 
     specifically prescribed therein, shall not be considered a 
     matter within the jurisdiction of either the Senate or House 
     Committees on the Budget.
       (b) CBO PAYGO Estimates.--
       (1) In general.--
       (A) Estimates.--Section 308(a) of the Congressional Budget 
     Act of 1974 is amended by adding at the end the following new 
     paragraph:
       ``(3) CBO paygo estimates.--
       ``(A) The Chairs of the Committees on the Budget of the 
     House and Senate, as applicable, shall request from the 
     Director of the Congressional Budget Office an estimate of 
     the budgetary effects of PAYGO legislation.
       ``(B) Estimates shall be prepared using baseline estimates 
     supplied by the Congressional Budget Office, consistent with 
     section 257 of the Balanced Budget and Emergency Deficit 
     Control Act of 1985.
       ``(C) The Director shall not count timing shifts, as that 
     term is defined at section 3(8) of the Statutory Pay-As-You-
     Go Act of 2010, in estimates of the budgetary effects of 
     PAYGO Legislation.''.
       (B) Sideheading.--The side heading of section 308(a) of the 
     Congressional Budget Act of 1974 is amended by striking 
     ``Reports on''
       (2) Guidelines.--Section 308 of the Congressional Budget 
     Act of 1974 is amended by adding at the end the following new 
     subsection:
       ``(d) Scorekeeping Guidelines.--Estimates under this 
     section shall be provided in accordance with the scorekeeping 
     guidelines determined under section 252(d)(5) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985.''.
       (c) Current Policy Adjustments for Certain Legislation.--
       (1) In general.--For any provision of legislation that 
     meets the criteria in subsection (c), (d), (e) or (f) of 
     section 7, the Chairs of the Committees on the Budget of the 
     House and Senate, as applicable, shall request that CBO 
     adjust the estimate of budgetary effects of that legislation 
     pursuant to paragraph (2) for the purposes of this title. A 
     single piece of legislation may contain provisions that meet 
     criteria in more than one of the subsections referred to in 
     the preceding sentence. CBO shall adjust estimates for 
     legislation designated under subsection (a) and estimated 
     under subsection (b). OMB shall adjust estimates for 
     legislation estimated under subsection (d)(3).
       (2) Adjustments.--
       (A) Estimates.--CBO or OMB, as applicable, shall exclude 
     from the estimate of budgetary effects any budgetary effects 
     of a provision that meets the criteria in subsection (c), 
     (d), (e) or (f) of section 7, to the extent that those 
     budgetary effects, when combined with all other excluded 
     budgetary effects of any other previously designated 
     provisions of enacted legislation under the same subsection 
     of section 7, do not exceed the maximum applicable current 
     policy adjustment defined under the applicable subsection of 
     section 7 for the applicable 10-year period.
       (B) Baseline.--Any estimate made pursuant to subparagraph 
     (A) shall be prepared using baseline estimates supplied by 
     the Congressional Budget Office, consistent with section 257 
     of the BBEDCA. CBO estimates of legislation adjusted for 
     current policy shall include a separate presentation of costs 
     excluded from the calculation of budgetary effects for the 
     legislation, as well as an updated total of all excluded 
     costs of provisions within subsection (c), (d), or (e) of 
     section 7, as applicable, and in the case of paragraph (1) of 
     section 7(f), within any of the subparagraphs (A) through (L) 
     of such paragraph, as applicable.
       (3) Limitation on availability of excess savings.--
       (A) Prohibition on use of excess saving for ineligible 
     policies.--To the extent the adjustment for current policy of 
     any provision estimated under this subsection exceeds the 
     estimated budgetary effects of that provision, these excess 
     savings shall not be available to offset the costs of any 
     provisions not otherwise eligible for a current policy 
     adjustment under section 7, and shall not be counted on the 
     PAYGO scorecards established pursuant to subsections (d)(4) 
     and (d)(5).
       (B) Prohibition on use of excess savings across budget 
     areas.--For provisions eligible for a current policy 
     adjustment under

[[Page 573]]

     subsections (c) through (f) of section 7, to the extent the 
     adjustment for current policy of any provision exceeds the 
     estimated budgetary effects of that same provision, the 
     excess savings shall be available only to offset the costs of 
     other provisions that qualify for a current policy adjustment 
     in that same subsection. Each paragraph in section 7(f)(1) 
     shall be considered a separate subsection for purposes of 
     this section.
       (4) Further guidance on estimating budgetary effects.--
     Estimates of budgetary effects under this subsection shall be 
     consistent with the guidance provided at section 7(h).
       (5) Inclusion of statement.--For PAYGO legislation adjusted 
     pursuant to section 7, the Chairman of the House or Senate 
     Budget Committee, as applicable, shall include in any 
     statement titled ``Budgetary Effects of PAYGO Legislation'', 
     submitted for that legislation pursuant to section 4, an 
     explanation of the current policy designation and 
     adjustments.
       (d) OMB PAYGO Scorecards.--
       (1) In general.--OMB shall maintain and make publicly 
     available a continuously updated document containing two 
     PAYGO scorecards displaying the budgetary effects of PAYGO 
     legislation as determined under section 308 of the 
     Congressional Budget Act of 1974, applying the look-back 
     requirement in subsection (e) and the averaging requirement 
     in subsection (f), and a separate addendum displaying the 
     estimates of the costs of provisions designated in statute as 
     emergency requirements.
       (2) Estimates in legislation.--Except as provided in 
     paragraph (3), in making the calculations for the PAYGO 
     scorecards, OMB shall use the budgetary effects included by 
     reference in the applicable legislation pursuant to 
     subsection (a).
       (3) OMB paygo estimates.--If a PAYGO Act does not contain a 
     valid reference to its budgetary effects consistent with 
     subsection (a), OMB shall estimate the budgetary effects of 
     that legislation upon its enactment. The OMB estimate shall 
     be based on the approaches to scorekeeping set forth in 
     section 308 of the Congressional Budget Act of 1974, as 
     amended by this title, and subsection (g)(4), and shall use 
     the same economic and technical assumptions as used in the 
     most recent budget submitted by the President under section 
     1105(a) of title 31 of the United States Code.
       (4) 5-year scorecard.--The first scorecard shall display 
     the budgetary effects of PAYGO legislation in each year over 
     the 5-year period beginning in the budget year.
       (5) 10-year scorecard.--The second scorecard shall display 
     the budgetary effects of PAYGO legislation in each year over 
     the 10-year period beginning in the budget year.
       (6) Community living assistance services and supports 
     act.--Neither scorecard maintained by OMB pursuant to this 
     subsection shall include net savings from any provisions of 
     legislation titled ``Community Living Assistance Services and 
     Supports Act'', which establishes a Federal insurance program 
     for long-term care, if such legislation is enacted into law, 
     or amended, subsequent to the date of enactment of this 
     title.
       (e) Look-Back To Capture Current-Year Effects.--For 
     purposes of this section, OMB shall treat the budgetary 
     effects of PAYGO legislation enacted during a session of 
     Congress that occur during the current year as though they 
     occurred in the budget year.
       (f) Averaging Used to Measure Compliance Over 5-Year and 
     10-Year Periods.--OMB shall cumulate the budgetary effects of 
     a PAYGO Act over the budget year (which includes any look-
     back effects under subsection (e)) and--
       (1) for purposes of the 5-year scorecard referred to in 
     subsection (d)(4), the four subsequent outyears, divide that 
     cumulative total by five, and enter the quotient in the 
     budget-year column and in each subsequent column of the 5-
     year PAYGO scorecard; and
       (2) for purposes of the 10-year scorecard referred to in 
     subsection (d)(5), the nine subsequent outyears, divide that 
     cumulative total by ten, and enter the quotient in the 
     budget-year column and in each subsequent column of the 10-
     year PAYGO scorecard.
       (g) Emergency Legislation.--
       (1) Designation in statute.--If a provision of direct 
     spending or revenue legislation in a PAYGO Act is enacted as 
     an emergency requirement that the Congress so designates in 
     statute pursuant to this section, the amounts of new budget 
     authority, outlays, and revenue in all fiscal years resulting 
     from that provision shall be treated as an emergency 
     requirement for the purposes of this Act.
       (2) Designation in the house of representatives.--If a 
     PAYGO Act includes a provision expressly designated as an 
     emergency for the purposes of this title, the Chair shall put 
     the question of consideration with respect thereto.
       (3) Point of order in the senate.--
       (A) In general.--When the Senate is considering a PAYGO 
     Act, if a point of order is made by a Senator against an 
     emergency designation in that measure, that provision making 
     such a designation shall be stricken from the measure and may 
     not be offered as an amendment from the floor.
       (B) Supermajority waiver and appeals.--
       (i) Waiver.--Subparagraph (A) may be waived or suspended in 
     the Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (ii) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this 
     subsection.
       (C) Definition of an emergency designation.--For purposes 
     of subparagraph (A), a provision shall be considered an 
     emergency designation if it designates any item as an 
     emergency requirement pursuant to this subsection.
       (D) Form of the point of order.--A point of order under 
     subparagraph (A) may be raised by a Senator as provided in 
     section 313 (e) of the Congressional Budget Act of 1974.
       (E) Conference reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a PAYGO Act, upon a point of order being made by 
     any Senator pursuant to this section, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this subsection), no further amendment shall be 
     in order.
       (4) Effect of designation on scoring.--If a provision is 
     designated as an emergency requirement under this Act, CBO or 
     OMB, as applicable, shall not include the budgetary effects 
     of such a provision in its estimate of the budgetary effects 
     of that PAYGO legislation.

     SEC. 5. ANNUAL REPORT AND SEQUESTRATION ORDER.

       (a) Annual Report.--Not later than 14 days (excluding 
     weekends and holidays) after Congress adjourns to end a 
     session, OMB shall make publicly available and cause to be 
     printed in the Federal Register an annual PAYGO report. The 
     report shall include an up-to-date document containing the 
     PAYGO scorecards, a description of any current policy 
     adjustments made under section 4(c), information about 
     emergency legislation (if any) designated under section 4(g), 
     information about any sequestration if required by subsection 
     (b), and other data and explanations that enhance public 
     understanding of this title and actions taken under it.
       (b) Sequestration Order.--If the annual report issued at 
     the end of a session of Congress under subsection (a) shows a 
     debit on either PAYGO scorecard for the budget year, OMB 
     shall prepare and the President shall issue and include in 
     that report a sequestration order that, upon issuance, shall 
     reduce budgetary resources of direct spending programs by 
     enough to offset that debit as prescribed in section 6. If 
     there is a debit on both scorecards, the order shall fully 
     offset the larger of the two debits. OMB shall transmit the 
     order and the report to the House of Representatives and the 
     Senate. If the President issues a sequestration order, the 
     annual report shall contain, for each budget account to be 
     sequestered, estimates of the baseline level of budgetary 
     resources subject to sequestration, the amount of budgetary 
     resources to be sequestered, and the outlay reductions that 
     will occur in the budget year and the subsequent fiscal year 
     because of that sequestration.

     SEC. 6. CALCULATING A SEQUESTRATION.

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

[[Page 574]]

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

     SEC. 7. ADJUSTMENT FOR CURRENT POLICIES.

       (a) Purpose.--The purpose of this section is to provide for 
     adjustments of estimates of budgetary effects of PAYGO 
     legislation for legislation affecting 4 areas of the budget--
       (1) payments made under section 1848 of the Social Security 
     Act (referred to in this section as ``Payment for Physicians' 
     Services'');
       (2) the Estate and Gift Tax under subtitle B of the 
     Internal Revenue Code of 1986;
       (3) the AMT; and
       (4) provisions of EGTRRA or JGTRRA that amended the 
     Internal Revenue Code of 1986 (or provisions in later 
     statutes further amending the amendments made by EGTRRA or 
     JGTRRA), other than--
       (A) the provisions of those 2 Acts that were made permanent 
     by the Pension Protection Act of 2006 (Public Law 109-280);
       (B) amendments to the Estate and Gift Tax referred to in 
     paragraph (2);
       (C) the AMT referred to in paragraph (3); and
       (D) the income tax rates on ordinary income that apply to 
     individuals with adjusted gross incomes greater than $200,000 
     for a single filer and $250,000 for joint filers.
       (b) Duration.--This section shall remain in effect through 
     December 31, 2011.
       (c) Medicare Payments to Physicians.--
       (1) Criteria.--Legislation that includes provisions 
     amending or superseding the system for updating payments 
     under subsections (d) and (f) of section 1848 of the Social 
     Security Act shall trigger the current policy adjustment 
     required by this title.
       (2) Adjustment.--The amount of the maximum current policy 
     adjustment shall be the difference between--
       (A) estimated net outlays attributable to the payment rates 
     and related parameters in accordance with subsections (d) and 
     (f) of section 1848 of the Social Security Act (as scheduled 
     on December 31, 2009, to be in effect); and
       (B) what those net outlays would have been if--
       (i) the nominal payment rates and related parameters in 
     effect for 2009 had been in effect through December 31, 2014, 
     without change; and
       (ii) thereafter, the nominal payment rates and related 
     parameters described in subparagraph (A) had applied and the 
     assumption described in clause (i) had never applied.
       (3) Limitation.--If the provisions in the legislation that 
     cause it to meet the criteria in paragraph (1) cover a time 
     period that ends before December 31, 2014, subject to the 
     maximum adjustment provided for under paragraph (2), the 
     amount of each current policy adjustment made pursuant to 
     this section shall be limited to the difference between--
       (A) estimated net outlays attributable to the payment rates 
     and related parameters specified in that section of the 
     Social Security Act (as scheduled on December 31, 2009, to be 
     in effect for the period of time covered by the relevant 
     provisions of the eligible legislation); and
       (B) what those net outlays would have been if the nominal 
     payment rates and related parameters in effect for 2009 had 
     been in effect, without change, for the same period of time 
     covered by the relevant provisions of the eligible 
     legislation as under subparagraph (A).
       (d) Estate and Gift Tax.--
       (1) Criteria.--Legislation that includes provisions 
     amending the Estate and Gift Tax under subtitle B of the 
     Internal Revenue Code of 1986 shall trigger the current 
     policy adjustment required by this title.
       (2) Adjustment.--The amount of the maximum current policy 
     adjustment shall be the difference between--
       (A) total revenues projected to be collected under the 
     Internal Revenue Code of 1986 (as scheduled on December 31, 
     2009, to be in effect); and
       (B) what those revenue collections would have been if, on 
     the date of enactment of the legislation meeting the criteria 
     in paragraph (1), estate and gift tax law had instead been 
     amended so that the tax rates, nominal exemption amounts, and 
     related parameters in effect for tax year 2009 had remained 
     in effect through December 31, 2011, with nominal exemption 
     amounts indexed for inflation after 2009 consistent with 
     subsection (g).
       (3) Limitation.--If the provisions in the legislation that 
     cause it to meet the criteria in paragraph (1) cover a time 
     period that ends before December 31, 2011, subject to the 
     maximum adjustment provided for under paragraph (2), the 
     amount of each current policy adjustment made pursuant to 
     this section shall be limited to the difference between--
       (A) total revenues projected to be collected under the 
     Internal Revenue Code of 1986 (as scheduled on December 31, 
     2009, to be in effect for the period of time covered by the 
     relevant provisions of the eligible legislation); and
       (B) what those revenues would have been if the estate and 
     gift tax law rates, nominal exemption amounts, and related 
     parameters in effect for 2009, with nominal exemption amounts 
     indexed for inflation after 2009 consistent with subsection 
     (g), had been in effect for the same period of time covered 
     by the relevant provisions of the eligible legislation as 
     under subparagraph (A).
       (4) Duration of policy adjustment.--Adjustments made 
     pursuant to this subsection are available for policies 
     affecting the estate and gift tax through only December 31, 
     2011. Any adjustments shall include budgetary effects in all 
     years from these policy changes.
       (e) AMT Relief.--
       (1) Criteria.--Legislation that includes provisions 
     extending AMT relief shall trigger the current policy 
     adjustment required by this title.
       (2) Adjustment.--The amount of the maximum current policy 
     adjustment shall be the difference between--
       (A) total revenues projected to be collected under the 
     Internal Revenue Code of 1986 (as scheduled on December 31, 
     2009, to be in effect); and
       (B) what those revenue collections would have been if, on 
     the date of enactment of legislation meeting the criteria in 
     paragraph (1), AMT law had instead been amended by making 
     commensurate adjustments in the exemption amounts for joint 
     and single filers in such a manner that the number of 
     taxpayers with AMT liability or lost credits that occur as a 
     result of the AMT would not be estimated to exceed the number 
     of taxpayers affected by the AMT in tax year 2008 in any year 
     for which relief is provided, through December 31, 2011.
       (3) Limitation.--If the provisions in the legislation that 
     cause it to meet the criteria in paragraph (1) cover a time 
     period that ends before December 31, 2011, subject to the 
     maximum adjustment provided for under paragraph (2), the 
     amount of each current policy adjustment made pursuant to 
     this section shall be limited to the difference between--
       (A) total revenues projected to be collected under the 
     Internal Revenue Code of 1986 (as scheduled on December 31, 
     2009, to be in effect for the period of time covered by the 
     relevant provisions of the eligible legislation); and
       (B) what those revenues would have been if, on the date of 
     enactment of legislation meeting the criteria in paragraph 
     (1), AMT law had instead been amended by making commensurate 
     adjustments in the exemption amounts for joint and single 
     filers in such a manner that the number of taxpayers with AMT 
     liability or lost credits that occur as a result of the AMT 
     would not be estimated to exceed the number of AMT taxpayers 
     in tax year 2008 for the same period of time covered by the 
     relevant provisions of the eligible legislation as under 
     subparagraph (A).
       (4) Duration of policy adjustment.--Adjustments made 
     pursuant to this subsection are available for policies 
     affecting the AMT through only December 31, 2011. Any 
     adjustments shall include budgetary effects in all years from 
     these policy changes.
       (f) Permanent Extension of Middle-Class Tax Cuts.--
       (1) Criteria.--Legislation that includes provisions 
     extending middle-class tax cuts shall trigger the current 
     policy adjustment required by this title if those provisions 
     extend 1 or more of the following provisions:
       (A) The 10 percent bracket as in effect for tax year 2010, 
     as provided for under section 101(a) of EGTRRA and any later 
     amendments through December 31, 2009.
       (B) The child tax credit as in effect for tax year 2010, as 
     provided for under section 201 of EGTRRA and any later 
     amendments through December 31, 2009.
       (C) Tax benefits for married couples as in effect for tax 
     year 2010, as provided for under title III of EGTRRA and any 
     later amendments through December 31, 2009.
       (D) The adoption credit as in effect in tax year 2010, as 
     provided for under section 202 of EGTRRA and any later 
     amendments through December 31, 2009.
       (E) The dependent care credit as in effect in tax year 
     2010, as provided for under section 204 of EGTRRA and any 
     later amendments through December 31, 2009.
       (F) The employer-provided child care credit as in effect in 
     tax year 2010, as provided for under section 205 of EGTRRA 
     and any later amendments through December 31, 2009.
       (G) The education tax benefits as in effect in tax year 
     2010, as provided for under title IV of EGTRRA and any later 
     amendments through December 31, 2009.
       (H) The 25 and 28 percent brackets as in effect for tax 
     year 2010, as provided for under section 101(a) of EGTRRA and 
     any later amendments through December 31, 2009.
       (I) The 33 percent bracket as in effect for tax year 2010, 
     as provided for under section 101(a) of EGTRRA and any later 
     amendment through December 31, 2009, affecting taxpayers with 
     adjusted gross income of $200,000 or less for single filers 
     and $250,000 or less for

[[Page 575]]

     joint filers in tax year 2010, with these income levels 
     indexed for inflation in each subsequent year consistent with 
     subsection (g).
       (J) The rates on income derived from capital gains and 
     qualified dividends as in effect for tax year 2010, as 
     provided for under sections 301 and 302 of JGTRRA and any 
     later amendment through December 31, 2009, affecting 
     taxpayers with adjusted gross income of $200,000 or less for 
     single filers and $250,000 for joint filers with these income 
     levels indexed for inflation in each subsequent year 
     consistent with subsection (g).
       (K) The phaseout of personal exemptions and the overall 
     limitation on itemized deductions as in effect for tax year 
     2010, as provided for under sections 102 and 103 of EGTRRA of 
     2001, respectively, and any later amendment through December 
     31, 2009, affecting taxpayer with adjusted gross income of 
     $200,000 or less for single filers and $250,000 for joint 
     filers, with these income levels indexed for inflation in 
     each subsequent year consistent with subsection (g).
       (L) The increase in the limitations on expensing 
     depreciable business assets for small businesses under 
     section 179(b) of the Internal Revenue Code of 1986 as in 
     effect in tax year 2010, as provided under section 202 of 
     JGTRRA and any later amendment through December 31, 2009.
       (2) Adjustment.--The amount of the maximum current policy 
     adjustment shall be the difference between--
       (A) total revenues projected to be collected and outlays to 
     be paid under the Internal Revenue Code of 1986 (as scheduled 
     on December 31, 2009, to be in effect); and
       (B) what those revenue collections and outlay payments 
     would have been if, on the date of enactment of legislation 
     meeting the criteria in paragraph (1), the provisions 
     identified in paragraph (1) were made permanent.
       (3) Limitation.--If the provisions in the legislation that 
     cause it to meet the criteria in paragraph (1) are not 
     permanent, subject to the maximum adjustment provided for 
     under paragraph (2), the amount of each current policy 
     adjustment made pursuant to this section shall be limited to 
     the difference between--
       (A) total revenues projected to be collected and outlays to 
     be paid under the Internal Revenue Code of 1986 (as scheduled 
     on December 31, 2009, to be in effect for the period of time 
     covered by the relevant provisions of the eligible 
     legislation); and
       (B) what those revenue collections and outlay payments 
     would have been if, on the date of enactment of legislation 
     meeting the criteria in paragraph (1), the provisions 
     identified in paragraph (1) had been in effect, without 
     change, for the same period of time covered by the relevant 
     provisions of the eligible legislation as under subparagraph 
     (A).
       (g) Indexing for Inflation.--Indexed amounts are assumed to 
     increase in each year by an amount equal to the cost-of-
     living adjustment determined under section 1(f)(3) of the 
     Internal Revenue Code of 1986 for the calendar year in which 
     the taxable year begins, determined by substituting 
     ``calendar year 2008'' for ``calendar year 1992'' in 
     subparagraph (B) of such section.
       (h) Guidance on Estimates and Current Policy Adjustments.--
       (1) Middle class tax cuts.--For purposes of estimates made 
     pursuant to subsection (f)--
       (A) each of the income tax provisions shall be estimated as 
     though the AMT had remained at current law as scheduled on 
     December 31, 2009 to be in effect; and
       (B) if more than 1 of the income tax provisions is included 
     in a single piece of legislation, those provisions shall be 
     estimated in the order in which they appear.
       (2) AMT.--For purposes of estimates made pursuant to 
     subsection (e), changes to the AMT shall be estimated as if, 
     on the date of enactment of legislation meeting the criteria 
     in subsection (e)(1), all of the income tax provisions 
     identified in subsection (f)(1) were made permanent.

     SEC. 8. APPLICATION OF BBEDCA.

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

     SEC. 9. TECHNICAL CORRECTIONS.

       (a) Section 250(c)(18) of BBEDCA is amended by striking 
     ``the expenses the Federal deposit insurance agencies'' and 
     inserting ``the expenses of the Federal deposit insurance 
     agencies''.
       (b) Section 256(k)(1) of BBEDCA is amended by striking ``in 
     paragraph (5)'' and inserting ``in paragraph (6)''.

     SEC. 10. CONFORMING AMENDMENTS.

       (a) Section 256(a) of BBEDCA is repealed.
       (b) Section 256(b) of BBEDCA is amended by striking 
     ``origination fees under sections 438(c)(2) and 455(c) of 
     that Act shall each be increased by 0.50 percentage point.'' 
     and inserting in lieu thereof ``origination fees under 
     sections 438(c)(2) and (6) and 455(c) and loan processing and 
     issuance fees under section 428(f)(1)(A)(ii) of that Act 
     shall each be increased by the uniform percentage specified 
     in that sequestration order, and, for student loans 
     originated during the period of the sequestration, special 
     allowance payments under section 438(b) of that Act accruing 
     during the period of the sequestration shall be reduced by 
     the uniform percentage specified in that sequestration 
     order.''.
       (c) Section 256(c) of BBEDCA is repealed.
       (d) Section 256(d) of BBEDCA is amended--
       (1) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (5), and (6);
       (2) by amending paragraph (1) to read as follows:
       ``(1) Calculation of reduction in payment amounts.--To 
     achieve the total percentage reduction in those programs 
     required by section 252 or 253, subject to paragraph (2), and 
     notwithstanding section 710 of the Social Security Act, OMB 
     shall determine, and the applicable Presidential order under 
     section 254 shall implement, the percentage reduction that 
     shall apply, with respect to the health insurance programs 
     under title XVIII of the Social Security Act--
       ``(A) in the case of parts A and B of such title, to 
     individual payments for services furnished during the one-
     year period beginning on the first day of the first month 
     beginning after the date the order is issued (or, if later, 
     the date specified in paragraph (4)); and
       ``(B) in the case of parts C and D, to monthly payments 
     under contracts under such parts for the same one-year 
     period;
     such that the reduction made in payments under that order 
     shall achieve the required total percentage reduction in 
     those payments for that period.''.
       (3) by inserting after paragraph (1) the following:
       ``(2) Uniform reduction rate; maximum permissible 
     reduction.--Reductions in payments for programs and 
     activities under such title XVIII pursuant to a sequestration 
     order under section 254 shall be at a uniform rate, which 
     shall not exceed 4 percent, across all such programs and 
     activities subject to such order.'';
       (4) by inserting after paragraph (3), as redesignated, the 
     following:
       ``(4) Timing of subsequent sequestration order.--A 
     sequestration order required by section 252 or 253 with 
     respect to programs under such title XVIII shall not take 
     effect until the first month beginning after the end of the 
     effective period of any prior sequestration order with 
     respect to such programs, as determined in accordance with 
     paragraph (1).'';
       (5) in paragraph (6), as redesignated, to read as follows:
       ``(6) Sequestration disregarded in computing payment 
     amounts.--The Secretary of Health and Human Services shall 
     not take into account any reductions in payment amounts which 
     have been or may be effected under this part, for purposes of 
     computing any adjustments to payment rates under such title 
     XVIII, specifically including--
       ``(A) the part C growth percentage under section 
     1853(c)(6);
       ``(B) the part D annual growth rate under section 1860D-
     2(b)(6); and
       ``(C) application of risk corridors to part D payment rates 
     under section 1860D-15(e).''; and
       (6) by adding after paragraph (6), as redesignated, the 
     following:
       ``(7) Exemptions from sequestration.--In addition to the 
     programs and activities specified in section 255, the 
     following shall be exempt from sequestration under this part:
       ``(A) Part d low-income subsidies.--Premium and cost-
     sharing subsidies under section 1860D-14 of the Social 
     Security Act.
       ``(B) Part d catastrophic subsidy.--Payments under section 
     1860D-15(b) and (e)(2)(B) of the Social Security Act.
       ``(C) Qualified individual (qi) premiums.--Payments to 
     States for coverage of Medicare cost-sharing for certain low-
     income Medicare beneficiaries under section 1933 of the 
     Social Security Act.''.

     SEC. 11. EXEMPT PROGRAMS AND ACTIVITIES.

       (a) Designations.--Section 255 of BBEDCA is amended by 
     redesignating subsection (i) as (j) and striking ``1998'' and 
     inserting in lieu thereof ``2010''.
       (b) Social Security, Veterans Programs, Net Interest, and 
     Tax Credits.--Subsections (a) through (d) of section 255 of 
     BBEDCA are amended to read as follows:
       ``(a) Social Security Benefits and Tier I Railroad 
     Retirement Benefits.--Benefits payable under the old-age, 
     survivors, and disability insurance program established under 
     title II of the Social Security Act (42 U.S.C. 401 et seq.), 
     and benefits payable under section 231b(a), 231b(f)(2), 
     231c(a), and 231c(f) of

[[Page 576]]

     title 45 United States Code, shall be exempt from reduction 
     under any order issued under this part.
       ``(b) Veterans Programs.--The following programs shall be 
     exempt from reduction under any order issued under this part:
       ``All programs administered by the Department of Veterans 
     Affairs.
       ``Special Benefits for Certain World War II Veterans (28-
     0401-0-1-701).
       ``(c) Net Interest.--No reduction of payments for net 
     interest (all of major functional category 900) shall be made 
     under any order issued under this part.
       ``(d) Refundable Income Tax Credits.--Payments to 
     individuals made pursuant to provisions of the Internal 
     Revenue Code of 1986 establishing refundable tax credits 
     shall be exempt from reduction under any order issued under 
     this part.''.
       (c) Other Programs and Activities, Low-Income Programs, and 
     Economic Recovery Programs.--Subsections (g) and (h) of 
     section 255 of BBEDCA are amended to read as follows:
       ``(g) Other Programs and Activities.--
       ``(1)(A) The following budget accounts and activities shall 
     be exempt from reduction under any order issued under this 
     part:
       ``Activities resulting from private donations, bequests, or 
     voluntary contributions to the Government.
       ``Activities financed by voluntary payments to the 
     Government for goods or services to be provided for such 
     payments.
       ``Administration of Territories, Northern Mariana Islands 
     Covenant grants (14-0412-0-1-808).
       ``Advances to the Unemployment Trust Fund and Other Funds 
     (16-0327-0-1-600).
       ``Black Lung Disability Trust Fund Refinancing (16-0329-0-
     1-601).
       ``Bonneville Power Administration Fund and borrowing 
     authority established pursuant to section 13 of Public Law 
     93-454 (1974), as amended (89-4045-0-3-271).
       ``Claims, Judgments, and Relief Acts (20-1895-0-1-808).
       ``Compact of Free Association (14-0415-0-1-808).
       ``Compensation of the President (11-0209-01-1-802).
       ``Comptroller of the Currency, Assessment Funds (20-8413-0-
     8-373).
       ``Continuing Fund, Southeastern Power Administration (89-
     5653-0-2-271).
       ``Continuing Fund, Southwestern Power Administration (89-
     5649-0-2-271).
       ``Dual Benefits Payments Account (60-0111-0-1-601).
       ``Emergency Fund, Western Area Power Administration (89-
     5069-0-2-271).
       ``Exchange Stabilization Fund (20-4444-0-3-155).
       ``Farm Credit Administration Operating Expenses Fund (78-
     4131-0-3-351).
       ``Farm Credit System Insurance Corporation, Farm Credit 
     Insurance Fund (78-4171-0-3-351).
       ``Federal Deposit Insurance Corporation, Deposit Insurance 
     Fund (51-4596-0-4-373).
       ``Federal Deposit Insurance Corporation, FSLIC Resolution 
     Fund (51-4065-0-3-373).
       ``Federal Deposit Insurance Corporation, Noninterest 
     Bearing Transaction Account Guarantee (51-4458-0-3-373).
       ``Federal Deposit Insurance Corporation, Senior Unsecured 
     Debt Guarantee (51-4457-0-3-373).
       ``Federal Home Loan Mortgage Corporation (Freddie Mac).
       ``Federal Housing Finance Agency, Administrative Expenses 
     (95-5532-0-2-371).
       ``Federal National Mortgage Corporation (Fannie Mae).
       ``Federal Payment to the District of Columbia Judicial 
     Retirement and Survivors Annuity Fund (20-1713-0-1-752).
       ``Federal Payment to the District of Columbia Pension Fund 
     (20-1714-0-1-601).
       ``Federal Payments to the Railroad Retirement Accounts (60-
     0113-0-1-601).
       ``Federal Reserve Bank Reimbursement Fund (20-1884-0-1-
     803).
       ``Financial Agent Services (20-1802-0-1-803).
       ``Foreign Military Sales Trust Fund (11-8242-0-7-155).
       ``Hazardous Waste Management, Conservation Reserve Program 
     (12-4336-0-3-999).
       ``Host Nation Support Fund for Relocation (97-8337-0-7-
     051).
       ``Internal Revenue Collections for Puerto Rico (20-5737-0-
     2-806).
       ``Intragovernmental funds, including those from which the 
     outlays are derived primarily from resources paid in from 
     other government accounts, except to the extent such funds 
     are augmented by direct appropriations for the fiscal year 
     during which an order is in effect.
       ``Medical Facilities Guarantee and Loan Fund (75-9931-0-3-
     551).
       ``National Credit Union Administration, Central Liquidity 
     Facility (25-4470-0-3-373).
       ``National Credit Union Administration, Corporate Credit 
     Union Share Guarantee Program (25-4476-0-3-376).
       ``National Credit Union Administration, Credit Union 
     Homeowners Affordability Relief Program (25-4473-0-3-371).
       ``National Credit Union Administration, Credit Union Share 
     Insurance Fund (25-4468-0-3-373).
       ``National Credit Union Administration, Credit Union System 
     Investment Program (25-4474-0-3-376).
       ``National Credit Union Administration, Operating fund (25-
     4056-0-3-373).
       ``National Credit Union Administration, Share Insurance 
     Fund Corporate Debt Guarantee Program (25-4469-0-3-376).
       ``National Credit Union Administration, U.S. Central 
     Federal Credit Union Capital Program (25-4475-0-3-376).
       ``Office of Thrift Supervision (20-4108-0-3-373).
       ``Panama Canal Commission Compensation Fund (16-5155-0-2-
     602).
       ``Payment of Vietnam and USS Pueblo prisoner-of-war claims 
     within the Salaries and Expenses, Foreign Claims Settlement 
     account (15-0100-0-1-153).
       ``Payment to Civil Service Retirement and Disability Fund 
     (24-0200-0-1-805).
       ``Payment to Department of Defense Medicare-Eligible 
     Retiree Health Care Fund (97-0850-0-1-054).
       ``Payment to Judiciary Trust Funds (10-0941-0-1-752).
       ``Payment to Military Retirement Fund (97-0040-0-1-054).
       ``Payment to the Foreign Service Retirement and Disability 
     Fund (19-0540-0-1-153).
       ``Payments to Copyright Owners (03-5175-0-2-376).
       ``Payments to Health Care Trust Funds (75-0580-0-1-571).
       ``Payment to Radiation Exposure Compensation Trust Fund 
     (15-0333-0-1-054).
       ``Payments to Social Security Trust Funds (28-0404-0-1-
     651).
       ``Payments to the United States Territories, Fiscal 
     Assistance (14-0418-0-1-806).
       ``Payments to trust funds from excise taxes or other 
     receipts properly creditable to such trust funds.
       ``Payments to widows and heirs of deceased Members of 
     Congress (00-0215-0-1-801).
       ``Postal Service Fund (18-4020-0-3-372).
       ``Radiation Exposure Compensation Trust Fund (15-8116-0-1-
     054).
       ``Reimbursement to Federal Reserve Banks (20-0562-0-1-803).
       ``Salaries of Article III judges.
       ``Soldiers and Airmen's Home, payment of claims (84-8930-0-
     7-705).
       ``Tennessee Valley Authority Fund, except nonpower programs 
     and activities (64-4110-0-3-999).
       ``Tribal and Indian trust accounts within the Department of 
     the Interior which fund prior legal obligations of the 
     Government or which are established pursuant to Acts of 
     Congress regarding Federal management of tribal real property 
     or other fiduciary responsibilities, including but not 
     limited to Tribal Special Fund (14-5265-0-2-452), Tribal 
     Trust Fund (14-8030-0-7-452), White Earth Settlement (14-
     2204-0-1-452), and Indian Water Rights and Habitat 
     Acquisition (14-5505-0-2-303).
       ``United Mine Workers of America 1992 Benefit Plan (95-
     8260-0-7-551).
       ``United Mine Workers of America 1993 Benefit Plan (95-
     8535-0-7-551).
       ``United Mine Workers of America Combined Benefit Fund (95-
     8295-0-7-551).
       ``United States Enrichment Corporation Fund (95-4054-0-3-
     271).
       ``Universal Service Fund (27-5183-0-2-376).
       ``Vaccine Injury Compensation (75-0320-0-1-551).
       ``Vaccine Injury Compensation Program Trust Fund (20-8175-
     0-7-551).
       ``(B) The following Federal retirement and disability 
     accounts and activities shall be exempt from reduction under 
     any order issued under this part:
       ``Black Lung Disability Trust Fund (20-8144-0-7-601).
       ``Central Intelligence Agency Retirement and Disability 
     System Fund (56-3400-0-1-054).
       ``Civil Service Retirement and Disability Fund (24-8135-0-
     7-602).
       ``Comptrollers general retirement system (05-0107-0-1-801).
       ``Contributions to U.S. Park Police annuity benefits, Other 
     Permanent Appropriations (14-9924-0-2-303).
       ``Court of Appeals for Veterans Claims Retirement Fund (95-
     8290-0-7-705).
       ``Department of Defense Medicare-Eligible Retiree Health 
     Care Fund (97-5472-0-2-551).
       ``District of Columbia Federal Pension Fund (20-5511-0-2-
     601).
       ``District of Columbia Judicial Retirement and Survivors 
     Annuity Fund (20-8212-0-7-602).
       ``Energy Employees Occupational Illness Compensation Fund 
     (16-1523-0-1-053).
       ``Foreign National Employees Separation Pay (97-8165-0-7-
     051).
       ``Foreign Service National Defined Contributions Retirement 
     Fund (19-5497-0-2-602).
       ``Foreign Service National Separation Liability Trust Fund 
     (19-8340-0-7-602).
       ``Foreign Service Retirement and Disability Fund(19-8186-0-
     7-602).
       ``Government Payment for Annuitants, Employees Health 
     Benefits (24-0206-0-1-551).
       ``Government Payment for Annuitants, Employee Life 
     Insurance (24-0500-0-1-602).
       ``Judicial Officers' Retirement Fund (10-8122-0-7-602).
       ``Judicial Survivors' Annuities Fund (10-8110-0-7-602).
       ``Military Retirement Fund (97-8097-0-7-602).
       ``National Railroad Retirement Investment Trust (60-8118-0-
     7-601).
       ``National Oceanic and Atmospheric Administration 
     retirement (13-1450-0-1-306).
       ``Pensions for former Presidents (47-0105-0-1-802).

[[Page 577]]

       ``Postal Service Retiree Health Benefits Fund (24-5391-0-2-
     551).
       ``Public Safety Officer Benefits (15-0403-0-1-754).
       ``Rail Industry Pension Fund (60-8011-0-7-601).
       ``Retired Pay, Coast Guard (70-0602-0-1-403).
       ``Retirement Pay and Medical Benefits for Commissioned 
     Officers, Public Health Service (75-0379-0-1-551).
       ``Special Benefits for Disabled Coal Miners (16-0169-0-1-
     601).
       ``Special Benefits, Federal Employees' Compensation Act 
     (16-1521-0-1-600).
       ``Special Workers Compensation Expenses (16-9971-0-7-601).
       ``Tax Court Judges Survivors Annuity Fund (23-8115-0-7-
     602).
       ``United States Court of Federal Claims Judges' Retirement 
     Fund (10-8124-0-7-602).
       ``United States Secret Service, DC Annuity (70-0400-0-1-
     751).
       ``Voluntary Separation Incentive Fund (97-8335-0-7-051).
       ``(2) Prior legal obligations of the Government in the 
     following budget accounts and activities shall be exempt from 
     any order issued under this part:
       ``Biomass Energy Development (20-0114-0-1-271).
       ``Check Forgery Insurance Fund (20-4109-0-3-803).
       ``Credit liquidating accounts.
       ``Credit reestimates.
       ``Employees Life Insurance Fund (24-8424-0-8-602).
       ``Federal Aviation Insurance Revolving Fund (69-4120-0-3-
     402).
       ``Federal Crop Insurance Corporation Fund (12-4085-0-3-
     351).
       ``Federal Emergency Management Agency, National Flood 
     Insurance Fund (58-4236-0-3-453).
       ``Geothermal resources development fund (89-0206-0-1-271).
       ``Low-Rent Public Housing--Loans and Other Expenses (86-
     4098-0-3-604).
       ``Maritime Administration, War Risk Insurance Revolving 
     Fund (69-4302-0-3-403).
       ``Natural Resource Damage Assessment Fund (14-1618-0-1-
     302).
       ``Overseas Private Investment Corporation, Noncredit 
     Account (71-4184-0-3-151).
       ``Pension Benefit Guaranty Corporation Fund (16-4204-0-3-
     601).
       ``San Joaquin Restoration Fund (14-5537-0-2-301).
       ``Servicemembers' Group Life Insurance Fund (36-4009-0-3-
     701).
       ``Terrorism Insurance Program (20-0123-0-1-376).
       ``(h) Low-Income Programs.--The following programs shall be 
     exempt from reduction under any order issued under this part:
       ``Academic Competitiveness/Smart Grant Program (91-0205-0-
     1-502).
       ``Child Care Entitlement to States (75-1550-0-1-609).
       ``Child Enrollment Contingency Fund (75-5551-0-2-551).
       ``Child Nutrition Programs (with the exception of special 
     milk programs) (12-3539-0-1-605).
       ``Children's Health Insurance Fund (75-0515-0-1-551).
       ``Commodity Supplemental Food Program (12-3507-0-1-605).
       ``Contingency Fund (75-1522-0-1-609).
       ``Family Support Programs (75-1501-0-1-609).
       ``Federal Pell Grants under section 401 Title IV of the 
     Higher Education Act.
       ``Grants to States for Medicaid (75-0512-0-1-551).
       ``Payments for Foster Care and Permanency (75-1545-0-1-
     609).
       ``Supplemental Nutrition Assistance Program (12-3505-0-1-
     605).
       ``Supplemental Security Income Program (28-0406-0-1-609).
       ``Temporary Assistance for Needy Families (75-1552-0-1-
     609).''.
       (d) Additional Excluded Programs.--Section 255 of BBEDCA is 
     amended by adding the following after subsection (h):
       ``(i) Economic Recovery Programs.--The following programs 
     shall be exempt from reduction under any order issued under 
     this part:
       ``GSE Preferred Stock Purchase Agreements (20-0125-0-1-
     371).
       ``Office of Financial Stability (20-0128-0-1-376).
       ``Special Inspector General for the Troubled Asset Relief 
     Program (20-0133-0-1-376).
       ``(j) Split Treatment Programs.--Each of the following 
     programs shall be exempt from any order under this part to 
     the extent that the budgetary resources of such programs are 
     subject to obligation limitations in appropriations bills:
       ``Federal-Aid Highways (69-8083-0-7-401).
       ``Highway Traffic Safety Grants (69-8020-0-7-401).
       ``Operations and Research NHTSA and National Driver 
     Register (69-8016-0-7-401).
       ``Motor Carrier Safety Operations and Programs (69-8159-0-
     7-401).
       ``Motor Carrier Safety Grants (69-8158-0-7-401).
       ``Formula and Bus Grants (69-8350-0-7-401).
       ``Grants-In-Aid for Airports (69-8106-0-7-402).''.

     SEC. 12. DETERMINATIONS AND POINTS OF ORDER.

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

                          ____________________