Family Budget Protection Act of 2004 - Amends the Congressional Budget Act of 1974 to eliminate the May 15 deadline for consideration of annual appropriations measures. Requires annual joint (currently, concurrent) budget resolutions signed by the President.
Provides for an amendment to change the statutory limit on the public debt.
Requires consideration of budget-related legislation before the budget resolution becomes law.
Sets forth provisions regarding the establishment of a reserve fund for emergencies.
Requires: (1) biennial (currently, annual) budget resolutions; (2) biennial appropriations Acts; and (3) biennial Government strategic and performance plans.
Provides spending caps on the growth of entitlements and mandatory budget outlays. Excludes benefits payable under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act (SSA), Tier 1 railroad retirement benefits, and benefits payable under part A of title XVIII (relating to part A Medicare hospital insurance benefits) of SSA and part C of such title (relating to the Medicare Advantage program) from required reductions under the Gramm-Rudman-Hollings Act, along with specified Government accounts and activities. Provides other exceptions, limitations, and special rules with respect to sequestration exemptions.
Directs the Chairman to maintain the Family Budget Protection Mandatory Account and the Family Budget Protection Discretionary Account.
Freezes at current levels spending authority for each unearned entitlement, high-cost discretionary spending program, and authorized and unauthorized discretionary spending programs.
Establishes the Commission to Eliminate Waste, Fraud, and Abuse.
Provides for accrual funding of the: (1) Civil Service Retirement and Disability Fund; (2) Central Intelligence Agency Retirement and Disability System; and (3) Foreign Service Retirement and Disability System.
Establishes in the Treasury: (1) the Public Health Service Commissioned Corps Retirement Fund; (2) the National Oceanic and Atmospheric Administration Commissioned Officer Corps Retirement System; and (3) the Coast Guard Military Retirement Fund.
Changes the name of the Department of Defense Medicare-Eligible Retiree Health Care Fund to Uniformed Services Health Care Fund (thus, providing health care programs for all uniformed service retirees, under certain conditions). (Currently, such programs are for Department of Defense Medicare-eligible beneficiaries.)
Decreases the limit on the public debt from $6.4 trillion to $4.393 trillion.
Prohibits consideration of extraneous appropriations in omnibus appropriations measures.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3800 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 3800
To reform Federal budget procedures, to impose spending safeguards, to
combat waste, fraud, and abuse, to account for accurate Government
agency costs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 11, 2004
Mr. Hensarling (for himself, Mr. Ryan of Wisconsin, Mr. Chocola, Mr.
Cox, Mr. Barrett of South Carolina, Mr. Mario Diaz-Balart of Florida,
Mr. Feeney, Mrs. Myrick, Mr. Gutknecht, Mr. Beauprez, Mr. Franks of
Arizona, Mr. Otter, Mr. Herger, Mr. DeMint, Mr. Culberson, Mr. Toomey,
Ms. Hart, Mr. Royce, Mr. Garrett of New Jersey, Mr. Thornberry, Mrs.
Musgrave, Mr. Pence, Mr. Shadegg, Mr. Carter, Mr. Neugebauer, Mr.
Hoekstra, Mr. Ryun of Kansas, Mr. Cantor, Mr. Boozman, Mrs. Cubin, Mr.
Goode, Mr. Akin, Mr. Doolittle, Mr. King of Iowa, Mr. Smith of
Michigan, Mr. Pitts, Mr. Istook, Mr. Sam Johnson of Texas, Mr. Gingrey,
Mr. Chabot, Mr. Bartlett of Maryland, Mr. Wilson of South Carolina, Mr.
Kline, Mr. Tancredo, Mr. Norwood, Mr. Sessions, Mrs. Blackburn, Mr.
Barton of Texas, Mr. Kennedy of Minnesota, Mr. Flake, Mr. Schrock, Mr.
Cole, Ms. Ginny Brown-Waite of Florida, Mr. Miller of Florida, and Mr.
Turner of Ohio) introduced the following bill; which was referred to
the Committee on the Budget, for a period ending not later than June 1,
2004, and in addition to the Committees on Rules, Ways and Means,
Appropriations, and Government Reform, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To reform Federal budget procedures, to impose spending safeguards, to
combat waste, fraud, and abuse, to account for accurate Government
agency costs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Family Budget
Protection Act of 2004''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
TITLE I--A SIMPLE AND BINDING BUDGET
Subtitle A--Joint Budget Resolutions
Sec. 101. Declaration of purposes for the Budget Act.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered.
Sec. 105. Amendments to effectuate joint resolutions on the budget.
Subtitle B--Rainy Day Fund for Emergencies
Sec. 111. Purpose.
Sec. 112. Repeal of adjustments for emergencies.
Sec. 113. OMB emergency criteria.
Sec. 114. Development of guidelines for application of emergency
definition.
Sec. 115. Reserve fund for emergencies in President's budget.
Sec. 116. Adjustments and reserve fund for emergencies in joint budget
resolutions.
Sec. 117. Application of section 306 to emergencies in excess of
amounts in reserve fund.
Sec. 118. Up-to-date tabulations.
Sec. 119. Prohibition on amendments to emergency reserve fund.
Subtitle C--Biennial Budget Option
Sec. 121. Effective date.
Sec. 122. Revision of timetable.
Sec. 123. Amendments to the Congressional Budget and Impoundment
Control Act of 1974.
Sec. 124. Amendments to Rules of House of Representatives.
Sec. 125. Amendments to title 31, United States Code.
Sec. 126. Two-year appropriations; title and style of appropriation
Acts.
Sec. 127. Multiyear authorizations.
Sec. 128. Government strategic and performance plans on a biennial
basis.
Sec. 129. Biennial appropriation bills.
Sec. 130. Assistance by Federal agencies to standing committees of the
Senate and the House of Representatives.
Subtitle D--Prevention of Government Shutdown
Sec. 141. Amendment to title 31.
Subtitle E--The Baseline
Sec. 151. Elimination of inflation adjustment.
Sec. 152. The President's budget.
Sec. 153. The congressional budget.
Sec. 154. Congressional Budget Office reports to committees.
Sec. 155. Treatment of emergencies.
TITLE II--PUTTING A LID ON THE FEDERAL BUDGET
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
Sec. 201. Spending caps on growth of entitlements and mandatories.
Sec. 212. Exempt programs and activities.
Sec. 213. Exceptions, limitations, and special rules.
Sec. 214. Point of order.
Sec. 215. Technical and conforming amendments.
Sec. 216. Establishment of Family Budget Protection Mandatory Account.
Subtitle B--Discretionary Spending Limits
Sec. 221. Enforcing discretionary spending limits.
Sec. 222. Establishment of Family Budget Protection Discretionary
Account.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE
Subtitle A--Sunsetting
Sec. 301. Reauthorization of discretionary programs and unearned
entitlements.
Sec. 302. Point of order.
Sec. 303. Decennial sunsetting.
Subtitle B--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
Sec. 311. Enhanced consideration of certain proposed rescissions.
Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse
Sec. 321. Establishment of Commission.
Sec. 322. Duties of the Commission.
Sec. 323. Powers of the Commission.
Sec. 324. Commission personnel matters.
Sec. 325. Termination of the Commission.
Sec. 326. Congressional consideration of reform proposals.
Sec. 327. Authorization of appropriations.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
Sec. 401. Civil Service Retirement System.
Sec. 402. Central Intelligence Agency Retirement and Disability System.
Sec. 403. Foreign Service Retirement and Disability System.
Sec. 404. Public Health Service Commissioned Corps Retirement System.
Sec. 405. National Oceanic and Atmospheric Administration Commissioned
Officer Corps Retirement System.
Sec. 406. Coast Guard Military Retirement System.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
Sec. 411. Federal employees health benefits fund.
Sec. 412. Funding uniformed services health benefits for all retirees.
Sec. 413. Effective date.
Subtitle C--Limit on the Public Debt
Sec. 421. Findings.
Sec. 422. Purpose.
Sec. 423. Limit on public debt.
Subtitle D--Risk-Assumed Budgeting
Sec. 431. Purposes.
Chapter 1--Budgetary Treatment of Federal Insurance Programs
Sec. 432. Federal insurance programs.
Chapter 2--Reports on Long-Term Budgetary Trends
Sec. 441. Reports on long-term budgetary trends.
TITLE V--MAINTAINING A COMMITMENT TO THE FAMILY BUDGET
Subtitle A--Further Enforcement Amendments
Sec. 501. Super-majority points of order.
Sec. 502. Budget resolution enforcement point of order.
Sec. 503. Point of order waiver protection.
Subtitle B--The Byrd Rule
Sec. 511. Limitation on Byrd Rule.
Subtitle C--Treatment of Extraneous Appropriations in Omnibus
Appropriation Measures
Sec. 521. Treatment of extraneous appropriations.
SEC. 2. EFFECTIVE DATE.
Except as otherwise specifically provided, this Act and the
amendments made by this Act shall become effective on the date of
enactment of this Act and shall apply with respect to fiscal years
beginning after September 30, 2005.
TITLE I--A SIMPLE AND BINDING BUDGET
Subtitle A--Joint Budget Resolutions
SEC. 101. DECLARATION OF PURPOSES FOR THE BUDGET ACT.
Paragraphs (1) and (2) of section 2 of the Congressional Budget and
Impoundment Control Act of 1974 are amended to read as follows:
``(1) to assure effective control over the budgetary
process;
``(2) to facilitate the determination each year of the
appropriate level of Federal revenues and expenditures by the
Congress and the President;''.
SEC. 102. THE TIMETABLE.
Section 300 of the Congressional Budget Act of 1974 is amended to
read as follows:
``timetable
``Sec. 300. The timetable with respect to the congressional budget
process for any fiscal year is as follows:
``On or before: Action to be completed:
First Monday in February.......
President submits his budget.
February 15....................
Congressional Budget Office
submits report to
Budget Committees.
Not later than 6 weeks after
President submits budget.
Committees submit views and
estimates to Budget
Committees.
April 1........................
Senate Budget Committee reports
joint resolution on the
budget.
April 15.......................
Congress completes action on
joint resolution on the
budget.
June 10........................
House Appropriations Committee
reports last annual
appropriation bill.
June 15........................
Congress completes action on
reconciliation
legislation.
June 30........................
House completes action on
annual appropriation
bills.
October 1......................
Fiscal year begins.''.
SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.
(a) Content of Annual Joint Resolutions on the Budget.--Section
301(a) of the Congressional Budget Act of 1974 is amended as follows:
(1) Strike paragraph (4) and insert the following new
paragraph:
``(4) subtotals of new budget authority and outlays for
nondefense discretionary spending, defense discretionary
spending, direct spending (excluding interest), and interest;
and for fiscal years to which the amendments made by subtitle B
of title I of the Family Budget Protection Act of 2004 apply,
subtotals of new budget authority and outlays for
emergencies;''.
(2) Strike the last sentence of such subsection.
(b) Additional Matters in Joint Resolution.--Section 301(b) of the
Congressional Budget Act of 1974 is amended as follows:
(1) Strike paragraphs (2), (4), and (6) through (9).
(2) After paragraph (1), insert the following new
paragraph:
``(2) if submitted by the Committee on Ways and Means of
the House of Representatives or the Committee on Finance of the
Senate to the Committee on the Budget of that House of
Congress, amend section 3101 of title 31, United States Code,
to change the statutory limit on the public debt;''.
(3) After paragraph (3), insert the following new
paragraph:
``(4) require such other congressional procedures, relating
to the budget, as may be appropriate to carry out the purposes
of this Act;''; and
(4) After paragraph (5), insert the following new
paragraph:
``(6) set forth procedures in the Senate whereby committee
allocations, aggregates, and other levels can be revised for
legislation if that legislation would not increase the deficit,
or would not increase the deficit when taken with other
legislation enacted after the adoption of the resolution, for
the first fiscal year or the total period of fiscal years
covered by the resolution.''.
(c) Required Contents of Report.--Section 301(e)(2) of the
Congressional Budget Act of 1974 is amended as follows:
(1) Redesignate subparagraphs (A), (B), (C), (D), (E), and
(F) as subparagraphs (B), (C), (E), (F), (H), and (I),
respectively.
(2) Before subparagraph (B) (as redesignated), insert the
following new subparagraph:
``(A) new budget authority and outlays for each
major functional category, based on allocations of the
total levels set forth pursuant to subsection
(a)(1);''.
(3) In subparagraph (C) (as redesignated), strike
``mandatory'' and insert ``direct spending''.
(4) After subparagraph (C) (as redesignated), insert the
following new subparagraph:
``(D) a measure, as a percentage of gross domestic
product, of total outlays, total Federal revenues, the
surplus or deficit, and new outlays for nondefense
discretionary spending, defense spending, and direct
spending as set forth in such resolution;''.
(5) After subparagraph (F) (as redesignated), insert the
following new subparagraph:
``(G) if the joint resolution on the budget
includes any allocation to a committee other than the
Committee on Appropriations of levels in excess of
current law levels, a justification for not subjecting
any program, project, or activity (for which the
allocation is made) to annual discretionary
appropriations;''.
(d) Additional Contents of Report.--Section 301(e)(3) of the
Congressional Budget Act of 1974 is amended as follows:
(1) Redesignate subparagraphs (A) and (B) as subparagraphs
(B) and (C), respectively, strike subparagraphs (C) and (D),
and redesignate subparagraph (E) as subparagraph (D).
(2) Before subparagraph (B), insert the following new
subparagraph:
``(A) reconciliation directives described in
section 310;''.
(e) President's Budget Submission to the Congress.--(1) The first
two sentences of section 1105(a) of title 31, United States Code, are
amended to read as follows:
``On or after the first Monday in January but not later than the first
Monday in February of each year the President shall submit a budget of
the United States Government for the following fiscal year which shall
set forth the following levels:
``(A) totals of new budget authority and outlays;
``(B) total Federal revenues and the amount, if any, by
which the aggregate level of Federal revenues should be
increased or decreased by bills and resolutions to be reported
by the appropriate committees;
``(C) the surplus or deficit in the budget;
``(D) subtotals of new budget authority and outlays for
nondefense discretionary spending, defense discretionary
spending, direct spending, and interest; and for fiscal years
to which the amendments made by subtitle B of title I of the
Family Budget Protection Act of 2004 apply, subtotals of new
budget authority and outlays for emergencies; and
``(E) the public debt.
Each budget submission shall include a budget message and summary and
supporting information and, as a separately delineated statement, the
levels required in the preceding sentence for at least each of the 9
ensuing fiscal years.''.
(2) The third sentence of section 1105(a) of title 31, United
States Code, is amended by inserting ``submission'' after ``budget''.
(f) Limitation on Contents of Budget Resolutions.--Section 305 of
the Congressional Budget Act of 1974 is amended by adding at the end
the following new subsection:
``(e) Limitation on Contents.--(1) It shall not be in order in the
House of Representatives or in the Senate to consider any joint
resolution on the budget or any amendment thereto or conference report
thereon that contains any matter referred to in paragraph (2).
``(2) Any joint resolution on the budget or any amendment thereto
or conference report thereon that contains any matter not permitted in
section 301(a) or (b) shall not be treated in the House of
Representatives or the Senate as a budget resolution under subsection
(a) or (b) or as a conference report on a budget resolution under
subsection (c) of this section.''.
SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED
(a) Amendments to Section 302.--Section 302(a) of the Congressional
Budget Act of 1974 is amended by striking paragraph (5).
(b) Amendments to Section 303 and Conforming Amendments.--(1)
Section 303 of the Congressional Budget Act of 1974 is amended by
striking ``(a) In General.--'', by striking ``as reported to the House
or Senate'', by striking ``to become effective'' in paragraph (1), and
by striking subsections (b) and (c); and
(2) by striking its section heading and inserting the following new
section heading: ``consideration of budget-related legislation before
budget becomes law''.
(c) Additional Amendments.--(1) Section 302(g)(1) of the
Congressional Budget Act of 1974 is amended by striking ``and, after
April 15, section 303''.
(2)(A) Section 904(c)(1) of the Congressional Budget Act of 1974 is
amended by inserting ``303,'' before ``305(b)(2),''.
(B) Section 904(d)(2) of the Congressional Budget Act of 1974 is
amended by inserting ``303,'' before ``305(b)(2),''.
SEC. 105. AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE BUDGET.
(a) Definition.--Paragraph (4) of section 3 of the Congressional
Budget Act of 1974 is amended to read as follows:
``(4) the term `joint resolution on the budget' means--
``(A) a joint resolution setting forth the budget
for the United States Government for a fiscal year as
provided in section 301; and
``(B) any other joint resolution revising the
budget for the United States Government for a fiscal
year as described in section 304.''.
(b) Additional Amendments to the Congressional Budget and
Impoundment Control Act of 1974.--(1)(A) Sections 301, 302, 303, 305,
308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget Act
of 1974 (2 U.S.C. 621 et seq.) are amended by striking ``concurrent''
each place it appears and inserting ``joint''.
(B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the
Congressional Budget Act of 1974 are amended by striking ``most
recently agreed to concurrent resolution on the budget'' each place it
occurs and inserting ``most recently enacted joint resolution on the
budget or agreed to concurrent resolution on the budget (as
applicable)''.
(ii) The section heading of section 301 is amended by striking
``adoption of concurrent resolution'' and inserting ``joint
resolutions''; and
(iii) Section 304 of such Act is amended to read as follows:
``permissible revisions of budget resolutions
``Sec. 304. At any time after the joint resolution on the budget
for a fiscal year has been enacted pursuant to section 301, and before
the end of such fiscal year, the two Houses and the President may enact
a joint resolution on the budget which revises or reaffirms the joint
resolution on the budget for such fiscal year most recently enacted.''.
(C) Sections 302, 303, 310, and 311, of such Act are amended by
striking ``agreed to'' each place it appears and by inserting
``enacted''.
(2)(A) Paragraph (4) of section 3 of the Congressional Budget and
Impoundment Control Act of 1974 is amended by striking ``concurrent''
each place it appears and by inserting ``joint''.
(B) The table of contents set forth in section 1(b) of such Act is
amended--
(i) in the item relating to section 301, by striking
``adoption of concurrent resolution'' and inserting ``joint
resolutions'';
(ii) by striking the item relating to section 303 and
inserting the following:
``Sec. 303. Consideration of budget-related legislation before budget
becomes law.'';
(iii) by striking ``concurrent'' and inserting ``joint'' in
the item relating to section 305.
(b) Conforming Amendments to the Rules of the House of
Representatives.--Clauses 1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), and
4(f)(2) of rule X, clause 10 of rule XVIII, and clause 10 of rule XX of
the Rules of the House of Representatives are amended by striking
``concurrent'' each place it appears and inserting ``joint''.
(c) Conforming Amendments to the Balanced Budget and Emergency
Deficit Control Act of 1985.--Section 258C(b)(1) of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is
amended by striking ``concurrent'' and inserting ``joint''.
(d) Conforming Amendments to Section 310 Regarding Reconciliation
Directives.--(1) The side heading of section 310(a) of the
Congressional Budget Act of 1974 (as amended by section 105(b)) is
further amended by inserting ``Joint Explanatory Statement Accompanying
Conference Report on'' before ``Joint''.
(2) Section 310(a) of such Act is amended by striking ``A'' and
inserting ``The joint explanatory statement accompanying the conference
report on a''.
(3) The first sentence of section 310(b) of such Act is amended by
striking ``If'' and inserting ``If the joint explanatory statement
accompanying the conference report on''.
(4) Section 310(c)(1) of such Act is amended by inserting ``the
joint explanatory statement accompanying the conference report on''
after ``pursuant to''.
(e) Conforming Amendments to Section 3 Regarding Direct Spending.--
Section 3 of the Congressional Budget and Impoundment Control Act of
1974 is amended by adding at the end the following new paragraph:
``(11) The term `direct spending' has the meaning given to
such term in section 250(c)(8) of the Balanced Budget and
Emergency Deficit Control Act of 1985.''.
Subtitle B--Rainy Day Fund for Emergencies
SEC. 111. PURPOSE.
The purposes of this subtitle are to--
(1) develop budgetary and fiscal procedures for
emergencies;
(2) subject spending for emergencies to budgetary
procedures and controls; and
(3) establish criteria for determining compliance with
emergency requirements.
SEC. 112. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.
(a) Elimination of Emergency Designation.--Sections 252(e) and
252(d)(4)(B) of the Balanced Budget and Emergency Deficit Control Act
of 1985 are repealed.
(b) Elimination of Adjustments.--Section 314 of the Congressional
Budget Act of 1974 is repealed.
(c) Conforming Amendment.--Clause 2 of rule XXI of the Rules of the
House of Representatives is amended by repealing paragraph (e) and by
redesignating paragraph (f) as paragraph (e).
SEC. 113. OMB EMERGENCY CRITERIA.
(a) Definition of Emergency.--Section 3 of the Congressional Budget
and Impoundment Control Act of 1974 (as amended by section 105(e)) is
further amended by adding at the end the following new paragraph:
``(12)(A) The term `emergency' means a situation that--
``(i) requires new budget authority and outlays (or
new budget authority and the outlays flowing therefrom)
for the prevention or mitigation of, or response to,
loss of life or property, or a threat to national
security; and
``(ii) is unanticipated.
``(B) As used in subparagraph (A), the term `unanticipated'
means that the situation is--
``(i) sudden, which means quickly coming into being
or not building up over time;
``(ii) urgent, which means a pressing and
compelling need requiring immediate action;
``(iii) unforeseen, which means not predicted or
anticipated as an emerging need; and
``(iv) temporary, which means not of a permanent
duration.''.
(b) Conforming Amendment.--The term `emergency' has the meaning
given to such term in section 3 of the Congressional Budget and
Impoundment Control Act of 1974.''.
SEC. 114. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY
DEFINITION.
Not later than 5 months after the date of enactment of this Act,
the chairmen of the Committees on the Budget (in consultation with the
President) shall, after consulting with the chairmen of the Committees
on Appropriations and applicable authorizing committees of their
respective Houses and the Directors of the Congressional Budget Office
and the Office of Management and Budget, jointly publish in the
Congressional Record guidelines for application of the definition of
emergency set forth in section 3(12) of the Congressional Budget and
Impoundment Control Act of 1974.
SEC. 115. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.
Section 1105(f) of title 31, United States Code is amended by
adding at the end the following new sentences: ``Such budget submission
shall also comply with the requirements of section 316(b) of the
Congressional Budget Act of 1974 and, in the case of any budget
authority requested for an emergency, such submission shall include a
detailed justification of why such emergency is an emergency within the
meaning of section 3(12) of the Congressional Budget Act of 1974.''.
SEC. 116. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN JOINT BUDGET
RESOLUTIONS.
(a) Emergencies.--Title III of the Congressional Budget Act of 1974
is amended by adding at the end the following new section:
``emergencies
``Sec. 316. (a) Adjustments.--
``(1) In general.--After the reporting of a bill or joint
resolution or the submission of a conference report thereon
that provides budget authority for any emergency as identified
pursuant to subsection (d) that is not covered by subsection
(c)--
``(A) the chairman of the Committee on the Budget
of the House of Representatives or the Senate shall
determine and certify, pursuant to the guidelines
referred to in section 114 of the Family Budget
Protection Act of 2004, the portion (if any) of the
amount so specified that is for an emergency within the
meaning of section 3(12); and
``(B) such chairman shall make the adjustment set
forth in paragraph (2) for the amount of new budget
authority (or outlays) in that measure and the outlays
flowing from that budget authority.
``(2) Matters to be adjusted.--The adjustments referred to
in paragraph (1) are to be made to the allocations made
pursuant to the appropriate joint resolution on the budget
pursuant to section 302(a) and shall be in an amount not to
exceed the amount reserved for emergencies pursuant to the
requirements of subsection (b).
``(b) Reserve Fund for Emergencies.--
``(1) Amounts.--The amount set forth in the reserve fund
for emergencies (other than those covered by subsection (c))
for budget authority and outlays for a fiscal year pursuant to
section 301(a)(4) shall equal--
``(A) the average of the enacted levels of budget
authority for emergencies (other than those covered by
subsection (c)) in the 5 fiscal years preceding the current year; and
``(B) the average of the levels of outlays for
emergencies in the 5 fiscal years preceding the current
year flowing from the budget authority referred to in
subparagraph (A), but only in the fiscal year for which
such budget authority first becomes available for
obligation.
``(2) Average levels.--For purposes of paragraph (1), the
amount used for a fiscal year to calculate the average of the
enacted levels when one or more of such 5 preceding fiscal
years is any of fiscal years 2000 through 2004 is as follows:
the amount of enacted levels of budget authority and the amount
of new outlays flowing therefrom for emergencies, but only in
the fiscal year for which such budget authority first becomes
available for obligation for each of such 5 fiscal years, which
shall be determined by the Committees on the Budget of the
House of Representatives and the Senate after receipt of a
report on such matter transmitted to such committees by the
Director of the Congressional Budget Office 6 months after the
date of enactment of this section and thereafter in February of
each calendar year.
``(c) Treatment of Emergencies To Fund Certain Military
Operations.--Whenever the Committee on Appropriations reports any bill
or joint resolution that provides budget authority for any emergency
that is a threat to national security and the funding of which carries
out a military operation authorized by a declaration of war or a joint
resolution authorizing the use of military force and the report
accompanying that bill or joint resolution, pursuant to subsection (d),
identifies any provision that increases outlays or provides budget
authority (and the outlays flowing therefrom) for such emergency, the
enactment of which would cause the total amount of budget authority or
outlays provided for emergencies for the budget year in the joint
resolution on the budget (pursuant to section 301(a)(4)) to be
exceeded:
``(A) Such bill or joint resolution shall be referred to
the Committee on the Budget of the House or the Senate, as the
case may be, with instructions to report it without amendment,
other than that specified in subparagraph (B), within 5
legislative days of the day in which it is reported from the
originating committee. If the Committee on the Budget of either
House fails to report a bill or joint resolution referred to it
under this subparagraph within such 5-day period, the committee
shall be automatically discharged from further consideration of
such bill or joint resolution and such bill or joint resolution
shall be placed on the appropriate calendar.
``(B) An amendment to such a bill or joint resolution
referred to in this subsection shall only consist of an
exemption from section 251A of the Balanced Budget and
Emergency Deficit Control Act of 1985 of all or any part of the
provisions that provide budget authority (and the outlays
flowing therefrom) for such emergency if the committee
determines, pursuant to the guidelines referred to in section
114 of the Family Budget Protection Act of 2004, that such
budget authority is for an emergency within the meaning of
section 3(12).
``(C) If such a bill or joint resolution is reported with
an amendment specified in subparagraph (B) by the Committee on
the Budget of the House of Representatives or the Senate, then
the budget authority and resulting outlays that are the subject
of such amendment shall not be included in any determinations
under section 302(f) or 311(a) for any bill, joint resolution,
amendment, motion, or conference report.
``(d) Committee Notification of Emergency Legislation.--Whenever
the Committee on Appropriations or any other committee of either House
(including a committee of conference) reports any bill or joint
resolution that provides budget authority for any emergency, the report
accompanying that bill or joint resolution (or the joint explanatory
statement of managers in the case of a conference report on any such
bill or joint resolution) shall identify all provisions that provide
budget authority and the outlays flowing therefrom for such emergency
and include a statement of the reasons why such budget authority meets
the definition of an emergency pursuant to the guidelines referred to
in section 114 of the Family Budget Protection Act of 2004.''.
(b) Conforming Amendment.--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. Emergencies.''.
SEC. 117. APPLICATION OF SECTION 306 TO EMERGENCIES IN EXCESS OF
AMOUNTS IN RESERVE FUND.
Section 306 of the Congressional Budget Act of 1974 is amended by
inserting at the end the following new sentence: ``No amendment
reported by the Committee on the Budget (or from the consideration of
which such committee has been discharged) pursuant to section 316(c)
may be amended.''.
SEC. 118. UP-TO-DATE TABULATIONS.
Section 308(b)(2) of the Congressional Budget Act of 1974 is
amended by striking ``and'' at the end of subparagraph (B), by striking
the period at the end of subparagraph (C) and inserting ``; and'', and
by adding at the end the following new subparagraph:
``(D) shall include an up-to-date tabulation of
amounts remaining in the reserve fund for
emergencies.''.
SEC. 119. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUND.
(a) Point of Order.--Section 305 of the Congressional Budget Act of
1974 (as amended by section 103(f)) is further amended by adding at the
end the following new subsection:
``(f) Point of Order Regarding Emergency Reserve Fund.--It shall
not be in order in the House of Representatives or in the Senate to
consider an amendment to a joint resolution on the budget which changes
the amount of budget authority and outlays set forth in section
301(a)(4) for emergency reserve fund.''.
(b) Technical Amendment.--(1) Section 904(c)(1) of the
Congressional Budget Act of 1974 is amended by inserting ``305(e),
305(f),'' after ``305(c)(4),''.
(2) Section 904(d)(2) of the Congressional Budget Act of 1974 is
amended by inserting ``305(e), 305(f),'' after ``305(c)(4),''.
Subtitle C--Biennial Budget Option
SEC. 121. EFFECTIVE DATE.
If--
(1) as part of the President's budget submission under
section 1105(a) of title 31, United States Code, during the
first session of any Congress, the President includes a request
that the joint resolution on the budget that will be considered
during the first session of the next Congress be for a biennium
consisting of two consecutive fiscal years; and
(2) the joint resolution on the budget for the fiscal year
to which the President's submission relates contains a
provision stating that the joint resolution on the budget that
will be considered during the first session of the next
Congress shall be for a biennium consisting of two consecutive
fiscal years;
then the provisions of this subtitle shall take effect on January 1 of
the calendar year in which that next Congress commences and apply to
that Congress and each Congress thereafter.
SEC. 122. REVISION OF TIMETABLE.
Section 300 of the Congressional Budget Act of 1974 (2 U.S.C. 631)
is amended to read as follows:
``timetable
``Sec. 300. (a) In General.--Except as provided by subsection (b),
the timetable with respect to the congressional budget process for any
Congress (beginning with the One Hundred Tenth Congress or a subsequent
Congress, as applicable) is as follows:
``First Session
``On or before: Action to be completed:
First Monday in February............. President submits budget recommendations.
February 15.......................... Congressional Budget Office submits report to Budget Committees.
Not later than 6 weeks after budget Committees submit views and estimates to Budget Committees.
submission.
April 1.............................. Budget Committees report joint resolution on the biennial budget.
May 15............................... Congress completes action on joint resolution on the biennial budget.
May 15............................... Biennial appropriation bills may be considered in the House.
June 10.............................. House Appropriations Committee reports last biennial appropriation bill.
June 30.............................. House completes action on biennial appropriation bills.
October 1............................ Biennium begins.
``Second Session
``On or before: Action to be completed:
February 15.......................... President submits budget review.
Not later than 6 weeks after Congressional Budget Office submits report to Budget Committees.
President submits budget review.
The last day of the session.......... Congress completes action on bills and resolutions authorizing new budget
authority for the s
``(b) Special Rule.--In the case of any first session of Congress
that begins in any year during which the term of a President (except a
President who succeeds himself) begins, the following dates shall
supersede those set forth in subsection (a):
``First Session
``On or before: Action to be completed:
First Monday in April................ President submits budget recommendations.
April 20............................. Committees submit views and estimates to Budget Committees.
May 15............................... Budget Committees report joint resolution on the biennial budget.
June 1............................... Congress completes action on joint resolution on the biennial budget.
June 1............................... Biennial appropriation bills may be considered in the House.
July 1............................... House Appropriations Committee reports last biennial appropriation bill.
July 20.............................. House completes action on biennial appropriation bills.
October 1............................ Biennium begins.''.
SEC. 123. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT
CONTROL ACT OF 1974.
(a) Declaration of Purpose.--Section 2(2) of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 621(2)) is amended
by striking ``each year'' and inserting ``biennially''.
(b) Definitions.--
(1) Budget resolution.--Section 3(4) of such Act (2 U.S.C.
622(4)) is amended by striking ``fiscal year'' each place it
appears and inserting ``biennium''.
(2) Biennium.--Section 3 of such Act (2 U.S.C. 622) (as
amended by section 111(a)) is further amended by adding at the
end the following new paragraph:
``(13) The term `biennium' means the period of 2
consecutive fiscal years beginning on October 1 of any odd-
numbered year.''.
(c) Biennial Joint Resolution on the Budget.--
(1) Contents of resolution.--Section 301(a) of such Act (2
U.S.C. 632(a)) is amended--
(A) in the matter preceding paragraph (1) by--
(i) striking ``April 15 of each year'' and
inserting ``May 15 of each odd-numbered year'';
(ii) striking ``the fiscal year beginning
on October 1 of such year'' the first place it
appears and inserting ``the biennium beginning
on October 1 of such year'';
(iii) striking ``the fiscal year beginning
on October 1 of such year'' the second place it
appears and inserting ``each fiscal year in
such period''; and
(iv) striking ``each of the four ensuing
fiscal years'' and inserting ``each fiscal year
in the next 2 bienniums'';
(B) in paragraph (6), by striking ``for the fiscal
year'' and inserting ``for each fiscal year in the
biennium''; and
(C) in paragraph (7), by striking ``for the fiscal
year'' and inserting ``for each fiscal year in the
biennium''.
(2) Additional matters.--Section 301(b) of such Act (2
U.S.C. 632(b)) is amended--
(A) in paragraph (3), by striking ``for such fiscal
year'' and inserting ``for either fiscal year in such
biennium''; and
(B) in paragraph (7), by striking ``for the first
fiscal year'' and inserting ``for each fiscal year in
the biennium''.
(3) Views of other committees.--Section 301(d) of such Act
(2 U.S.C. 632(d)) is amended by inserting ``(or, if applicable,
as provided by section 300(b))'' after ``United States Code''.
(4) Hearings.--Section 301(e)(1) of such Act (2 U.S.C.
632(e)) is amended by--
(A) striking ``fiscal year'' and inserting
``biennium''; and
(B) inserting after the second sentence the
following: ``On or before April 1 of each odd-numbered
year (or, if applicable, as provided by section
300(b)), the Committee on the Budget of each House shall report to its
House the joint resolution on the budget referred to in subsection (a)
for the biennium beginning on October 1 of that year.''.
(5) Goals for reducing unemployment.--Section 301(f) of
such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal
year'' each place it appears and inserting ``biennium''.
(6) Economic assumptions.--Section 301(g)(1) of such Act (2
U.S.C. 632(g)(1)) is amended by striking ``for a fiscal year''
and inserting ``for a biennium''.
(7) Section heading.--The section heading of section 301 of
such Act is amended by striking ``annual'' and inserting
``biennial''.
(8) Table of contents.--The item relating to section 301 in
the table of contents set forth in section 1(b) of such Act is
amended by striking ``Annual'' and inserting ``Biennial''.
(d) Committee Allocations.--Section 302 of such Act (2 U.S.C. 633)
is amended--
(1) in subsection (a)(1) by--
(A) striking ``for the first fiscal year of the
resolution,'' and inserting ``for each fiscal year in
the biennium,'';
(B) striking ``for that period of fiscal years''
and inserting ``for all fiscal years covered by the
resolution''; and
(C) striking ``for the fiscal year of that
resolution'' and inserting ``for each fiscal year in
the biennium'';
(2) in subsection (f)(1), by striking ``for a fiscal year''
and inserting ``for a biennium'';
(3) in subsection (f)(1), by striking ``first fiscal year''
and inserting ``either fiscal year of the biennium'';
(4) in subsection (f)(2)(A), by--
(A) striking ``first fiscal year'' and inserting
``each fiscal year of the biennium''; and
(B) striking ``the total of fiscal years'' and
inserting ``the total of all fiscal years covered by
the resolution''; and
(5) in subsection (g)(1)(A), by striking ``April'' and
inserting ``May''.
(e) Section 303 Point of Order.--Section 303 of such Act (2 U.S.C.
634(a)) is amended by striking ``for a fiscal year'' and inserting
``for a biennium'' and by striking ``the first fiscal year'' and
inserting ``each fiscal year of the biennium''.
(f) Permissible Revisions of Joint Resolutions on the Budget.--
Section 304 of such Act (2 U.S.C. 635) is amended--
(1) by striking ``fiscal year'' the first two places it
appears and inserting ``biennium'';
(2) by striking ``for such fiscal year''; and
(3) by inserting before the period ``for such biennium''.
(g) Procedures for Consideration of Budget Resolutions.--Section
305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended by striking
``fiscal year'' and inserting ``biennium''.
(h) Completion of House Committee Action on Appropriation Bills.--
Section 307 of such Act (2 U.S.C. 638) is amended--
(1) by striking ``each year'' and inserting ``each odd-
numbered year (or, if applicable, as provided by section
300(b), July 1)'';
(2) by striking ``annual'' and inserting ``biennial'';
(3) by striking ``fiscal year'' and inserting ``biennium'';
and
(4) by striking ``that year'' and inserting ``each odd-
numbered year''.
(i) Quarterly Budget Reports.--Section 308 of such Act (2 U.S.C.
639) is amended by adding at the end the following new subsection:
``(d) Quarterly Budget Reports.--The Director of the Congressional
Budget Office shall, as soon as practicable after the completion of
each quarter of the fiscal year, prepare an analysis comparing
revenues, spending, and the deficit or surplus for the current fiscal
year to assumptions included in the congressional budget resolution. In
preparing this report, the Director of the Congressional Budget Office
shall combine actual budget figures to date with projected revenue and
spending for the balance of the fiscal year. The Director of the
Congressional Budget Office shall include any other information in this
report that it deems useful for a full understanding of the current
fiscal position of the Government. The reports mandated by this
subsection shall be transmitted by the Director to the Senate and House
Committees on the Budget, and the Congressional Budget Office shall
make such reports available to any interested party upon request.''.
(j) Completion of House Action on Regular Appropriation Bills.--
Section 309 of such Act (2 U.S.C. 640) is amended--
(1) by striking ``It'' and inserting ``Except whenever
section 300(b) is applicable, it'';
(2) by inserting ``of any odd-numbered calendar year''
after ``July'';
(3) by striking ``annual'' and inserting ``biennial''; and
(4) by striking ``fiscal year'' and inserting ``biennium''.
(k) Reconciliation Process.--Section 310 of such Act (2 U.S.C. 641)
is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ``any fiscal year'' and inserting ``any
biennium'';
(2) in subsection (a)(1), by striking ``such fiscal year''
each place it appears and inserting ``any fiscal year covered
by such resolution''; and
(3) by striking subsection (f) and redesignating subsection
(g) as subsection (f).
(l) Section 311 Point of Order.--
(1) In the house.--Section 311(a)(1) of such Act (2 U.S.C.
642(a)) is amended--
(A) by striking ``for a fiscal year'' and inserting
``for a biennium'';
(B) by striking ``the first fiscal year'' each
place it appears and inserting ``either fiscal year of
the biennium''; and
(C) by striking ``that first fiscal year'' and
inserting ``each fiscal year in the biennium''.
(2) In the senate.--Section 311(a)(2) of such Act is
amended--
(A) in subparagraph (A), by striking ``for the
first fiscal year'' and inserting ``for either fiscal
year of the biennium''; and
(B) in subparagraph (B)--
(i) by striking ``that first fiscal year''
the first place it appears and inserting ``each
fiscal year in the biennium''; and
(ii) by striking ``that first fiscal year
and the ensuing fiscal years'' and inserting
``all fiscal years''.
(3) Social security levels.--Section 311(a)(3) of such Act
is amended by--
(A) striking ``for the first fiscal year'' and
inserting ``each fiscal year in the biennium''; and
(B) striking ``that fiscal year and the ensuing
fiscal years'' and inserting ``all fiscal years''.
(m) Maximum Deficit Amount Point of Order.--Section 312(c) of the
Congressional Budget Act of 1974 (2 U.S.C. 643) is amended--
(1) by striking ``for a fiscal year'' and inserting ``for a
biennium'';
(2) in paragraph (1), by striking ``first fiscal year'' and
inserting ``either fiscal year in the biennium'';
(3) in paragraph (2), by striking ``that fiscal year'' and
inserting ``either fiscal year in the biennium''; and
(4) in the matter following paragraph (2), by striking
``that fiscal year'' and inserting ``the applicable fiscal
year''.
SEC. 124. AMENDMENTS TO RULES OF HOUSE OF REPRESENTATIVES.
(a) Clause 4(a)(1)(A) of rule X of the Rules of the House of
Representatives is amended by inserting ``odd-numbered'' after
``each''.
(b) Clause 4(a)(4) of rule X of the Rules of the House of
Representatives is amended by striking ``fiscal year'' and inserting
``biennium''.
(c) Clause 4(b)(2) of rule X of the Rules of the House of
Representatives is amended by striking ``each fiscal year'' and
inserting ``the biennium''.
(d) Clause 4(b) of rule X of the Rules of the House of
Representatives is amended by striking ``and'' at the end of
subparagraph (5), by striking the period and inserting ``; and'' at the
end of subparagraph (6), and by adding at the end the following new
subparagraph:
``(7) use the second session of each Congress to study
issues with long-term budgetary and economic implications,
which would include--
``(A) hold hearings to receive testimony from
committees of jurisdiction to identify problem areas
and to report on the results of oversight; and
``(B) by January 1 of each odd-number year, issuing
a report to the Speaker which identifies the key issues
facing the Congress in the next biennium.''.
(e) Clause 4(e) of rule X of the Rules of the House of
Representatives is amended by striking ``annually'' each place it
appears and inserting ``biennially'' and by striking ``annual'' and
inserting ``biennial''.
(f) Clause 4(f) of rule X of the Rules of the House of
Representatives is amended--
(1) by inserting ``during each odd-numbered year'' after
``submits his budget'';
(2) by striking ``fiscal year'' the first place it appears
and inserting ``biennium''; and
(3) by striking ``that fiscal year'' and inserting ``each
fiscal year in such ensuing biennium''.
(g) Clause 11(i) of rule X of the Rules of the House of
Representatives is amended by striking ``during the same or preceding
fiscal year''.
(h) Clause 3(d)(2)(A) of rule XIII of the Rules of the House of
Representatives is amended by striking ``five'' both places it appears
and inserting ``six''.
(i) Clause 5(a)(1) of rule XIII of the Rules of the House of
Representatives is amended by striking ``fiscal year after September 15
in the preceding fiscal year'' and inserting ``biennium after September
15 of the calendar year in which such biennium begins''.
SEC. 125. AMENDMENTS TO TITLE 31, UNITED STATES CODE.
(a) Definition.--Section 1101 of title 31, United States Code, is
amended by adding at the end the following new paragraph:
``(3) `biennium' has the meaning given to such term in
paragraph (13) of section 3 of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 622(13)).''.
(b) Budget Contents and Submission to the Congress.--
(1) Schedule.--The matter preceding paragraph (1) in
section 1105(a) of title 31, United States Code, is amended to
read as follows:
``(a) On or before the first Monday in February of each odd-
numbered year (or, if applicable, as provided by section 300(b) of the
Congressional Budget Act of 1974), beginning with the One Hundred Tenth
Congress or a subsequent Congress (as applicable), the President shall
submit to the Congress the budget for the biennium beginning on October
1 of such calendar year. The budget transmitted under this subsection
shall include a budget message and summary and supporting information.
The President shall include in each budget the following:''.
(2) Expenditures.--Section 1105(a)(5) of title 31, United
States Code, is amended by striking ``the fiscal year for which
the budget is submitted and the 4 fiscal years after that
year'' and inserting ``each fiscal year in the biennium for
which the budget is submitted and in the succeeding 4 years''.
(3) Receipts.--Section 1105(a)(6) of title 31, United
States Code, is amended by striking ``the fiscal year for which
the budget is submitted and the 4 fiscal years after that year'' and
inserting ``each fiscal year in the biennium for which the budget is
submitted and in the succeeding 4 years''.
(4) Balance statements.--Section 1105(a)(9)(C) of title 31,
United States Code, is amended by striking ``the fiscal year''
and inserting ``each fiscal year in the biennium''.
(5) Government functions and activities.--Section
1105(a)(12) of title 31, United States Code, is amended in
subparagraph (A), by striking ``the fiscal year'' and inserting
``each fiscal year in the biennium''.
(6) Allowances.--Section 1105(a)(13) of title 31, United
States Code, is amended by striking ``the fiscal year'' and
inserting ``each fiscal year in the biennium''.
(7) Allowances for unanticipated and uncontrollable
expenditures.--Section 1105(a)(14) of title 31, United States
Code, is amended by striking ``that year'' and inserting ``each
fiscal year in the biennium for which the budget is
submitted''.
(8) Tax expenditures.--Section 1105(a)(16) of title 31,
United States Code, is amended by striking ``the fiscal year''
and inserting ``each fiscal year in the biennium''.
(9) Estimates for future years.--Section 1105(a)(17) of
title 31, United States Code, is amended--
(A) by striking ``the fiscal year following the
fiscal year'' and inserting ``each fiscal year in the
biennium following the biennium'';
(B) by striking ``that following fiscal year'' and
inserting ``each such fiscal year''; and
(C) by striking ``fiscal year before the fiscal
year'' and inserting ``biennium before the biennium''.
(10) Prior year outlays.--Section 1105(a)(18) of title 31,
United States Code, is amended--
(A) by striking ``the prior fiscal year,'' and
inserting ``each of the 2 most recently completed
fiscal years,'';
(B) by striking ``for that year'' and inserting
``with respect to those fiscal years''; and
(C) by striking ``in that year'' and inserting ``in
those fiscal years''.
(11) Prior year receipts.--Section 1105(a)(19) of title 31,
United States Code, is amended--
(A) by striking ``the prior fiscal year'' and
inserting ``each of the 2 most recently completed
fiscal years'';
(B) by striking ``for that year'' and inserting
``with respect to those fiscal years''; and
(C) by striking ``in that year'' each place it
appears and inserting ``in those fiscal years''.
(c) Estimated Expenditures of Legislative and Judicial Branches.--
Section 1105(b) of title 31, United States Code, is amended by striking
``each year'' and inserting ``each even-numbered year''.
(d) Recommendations To Meet Estimated Deficiencies.--Section
1105(c) of title 31, United States Code, is amended--
(1) by striking ``the fiscal year for'' the first place it
appears and inserting ``each fiscal year in the biennium for'';
(2) by striking ``the fiscal year for'' the second place it
appears and inserting ``each fiscal year of the biennium, as
the case may be,''; and
(3) by striking ``that year'' and inserting ``for each year
of the biennium''.
(e) Capital Investment Analysis.--Section 1105(e)(1) of title 31,
United States Code, is amended by striking ``ensuing fiscal year'' and
inserting ``biennium to which such budget relates''.
(f) Supplemental Budget Estimates and Changes.--
(1) In general.--Section 1106(a) of title 31, United States
Code, is amended--
(A) in the matter preceding paragraph (1), by--
(i) inserting ``and before February 15 of
each even-numbered year'' after ``Before July
16 of each year''; and
(ii) striking ``fiscal year'' and inserting
``biennium'';
(B) in paragraph (1), by striking ``that fiscal
year'' and inserting ``each fiscal year in such
biennium'';
(C) in paragraph (2), by striking ``4 fiscal years
following the fiscal year'' and inserting ``4 fiscal
years following the biennium''; and
(D) in paragraph (3), by striking ``fiscal year''
and inserting ``biennium''.
(2) Changes.--Section 1106(b) of title 31, United States
Code, is amended by--
(A) striking ``the fiscal year'' and inserting
``each fiscal year in the biennium''; and
(B) inserting ``and before February 15 of each
even-numbered year'' after ``Before July 16 of each
year''.
(g) Current Programs and Activities Estimates.--
(1) The president.--Section 1109(a) of title 31, United
States Code, is amended--
(A) by striking ``On or before the first Monday
after January 3 of each year (on or before February 5
in 1986)'' and inserting ``At the same time the budget
required by section 1105 is submitted for a biennium'';
and
(B) by striking ``the following fiscal year'' and
inserting ``each fiscal year of such period''.
(2) Joint economic committee.--Section 1109(b) of title 31,
United States Code, is amended by striking ``March 1 of each
year'' and inserting ``within 6 weeks of the President's budget
submission for each odd-numbered year (or, if applicable, as
provided by section 300(b) of the Congressional Budget Act of
1974)''.
(h) Year-Ahead Requests for Authorizing Legislation.--Section 1110
of title 31, United States Code, is amended by--
(1) striking ``May 16'' and inserting ``March 31''; and
(2) striking ``year before the year in which the fiscal
year begins'' and inserting ``calendar year preceding the
calendar year in which the biennium begins''.
SEC. 126. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF APPROPRIATION
ACTS.
Section 105 of title 1, United States Code, is amended to read as
follows:
``Sec. 105. Title and style of appropriations Acts
``(a) The style and title of all Acts making appropriations for the
support of the Government shall be as follows: `An Act making
appropriations (here insert the object) for each fiscal year in the
biennium of fiscal years (here insert the fiscal years of the
biennium).'.
``(b) All Acts making regular appropriations for the support of the
Government shall be enacted for a biennium and shall specify the amount
of appropriations provided for each fiscal year in such period.
``(c) For purposes of this section, the term `biennium' has the
same meaning as in section 3(13) of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 622(13)).''.
SEC. 127. MULTIYEAR AUTHORIZATIONS.
(a) In General.--Title III of the Congressional Budget Act of 1974
(as amended by section 116(a)) is further amended by adding at the end
the following new section:
``multiyear authorizations of appropriations
``Sec. 317. (a) It shall not be in order in the House of
Representatives or the Senate to consider any measure that contains a
specific authorization of appropriations for any purpose unless the
measure includes such a specific authorization of appropriations for
that purpose for not less than each fiscal year in one or more
bienniums.
``(b)(1) For purposes of this section, a specific authorization of
appropriations is an authorization for the enactment of an amount of
appropriations or amounts not to exceed an amount of appropriations
(whether stated as a sum certain, as a limit, or as such sums as may be
necessary) for any purpose for a fiscal year.
``(2) Subsection (a) does not apply with respect to an
authorization of appropriations for a single fiscal year for any
program, project, or activity if the measure containing that
authorization includes a provision expressly stating the following:
`Congress finds that no authorization of appropriation will be required
for [Insert name of applicable program, project, or activity] for any
subsequent fiscal year.'.
``(c) For purposes of this section, the term `measure' means a
bill, joint resolution, amendment, motion, or conference report.''.
(b) Amendment to 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 adding after the item relating to
section 316 the following new item:
``Sec. 317. Multiyear authorizations of appropriations.''.
SEC. 128. GOVERNMENT STRATEGIC AND PERFORMANCE PLANS ON A BIENNIAL
BASIS.
(a) Strategic Plans.--Section 306 of title 5, United States Code,
is amended--
(1) in subsection (a), by striking ``September 30, 1997''
and inserting ``September 30, 2007'';
(2) in subsection (b)--
(A) by striking ``at least every three years'' and
all that follows thereafter and inserting ``at least
every 4 years, except that strategic plans submitted by
September 30, 2007, shall be updated and revised by
September 30, 2010''; and
(B) by striking ``five years forward'' and
inserting ``six years forward''; and
(3) in subsection (c), by inserting a comma after
``section'' the second place it appears and adding ``including
a strategic plan submitted by September 30, 2007, meeting the
requirements of subsection (a)''.
(b) Budget Contents and Submission to Congress.--Paragraph (28) of
section 1105(a) of title 31, United States Code, is amended by striking
``beginning with fiscal year 1999, a'' and inserting ``beginning with
fiscal year 2010, a biennial''.
(c) Performance Plans.--Section 1115 of title 31, United States
Code, is amended--
(1) in subsection (a)--
(A) in the matter before paragraph (1)--
(i) by striking ``section 1105(a)(29)'' and
inserting ``section 1105(a)(28)''; and
(ii) by striking ``an annual'' and
inserting ``a biennial'';
(B) in paragraph (1) by inserting after ``program
activity'' the following: ``for both years 1 and 2 of
the biennial plan'';
(C) in paragraph (5) by striking ``and'' after the
semicolon;
(D) in paragraph (6) by striking the period and
inserting a semicolon; and inserting ``and'' after the
inserted semicolon; and
(E) by adding after paragraph (6) the following:
``(7) cover each fiscal year of the biennium beginning with
the first fiscal year of the next biennial budget cycle.'';
(2) in subsection (d) by striking ``annual'' and inserting
``biennial''; and
(3) in paragraph (6) of subsection (f) by striking
``annual'' and inserting ``biennial''.
(d) Managerial Accountability and Flexibility.--Section 9703 of
title 31, United States Code, relating to managerial accountability, is
amended--
(1) in subsection (a)--
(A) in the first sentence by striking ``annual'';
and
(B) by striking ``section 1105(a)(29)'' and
inserting ``section 1105(a)(28)'';
(2) in subsection (e)--
(A) in the first sentence by striking ``one or''
before ``two years'';
(B) in the second sentence by striking ``a
subsequent year'' and inserting ``for a subsequent 2-
year period''; and
(C) in the third sentence by striking ``three'' and
inserting ``four''.
(e) Strategic Plans.--Section 2802 of title 39, United States Code,
is amended--
(1) in subsection (a), by striking ``September 30, 1997''
and inserting ``September 30, 2007'';
(2) in subsection (b), by striking ``at least every three
years'' and inserting ``at least every 4 years except that
strategic plans submitted by September 30, 2007, shall be
updated and revised by September 30, 2010'';
(3) in subsection (b), by striking ``five years forward''
and inserting ``six years forward''; and
(4) in subsection (c), by inserting a comma after
``section'' the second place it appears and inserting
``including a strategic plan submitted by September 30, 2007,
meeting the requirements of subsection (a)''.
(f) Performance Plans.--Section 2803(a) of title 39, United States
Code, is amended--
(1) in the matter before paragraph (1), by striking ``an
annual'' and inserting ``a biennial'';
(2) in paragraph (1), by inserting after ``program
activity'' the following: ``for both years 1 and 2 of the
biennial plan'';
(3) in paragraph (5), by striking ``and'' after the
semicolon;
(4) in paragraph (6), by striking the period and inserting
``; and''; and
(5) by adding after paragraph (6) the following:
``(7) cover each fiscal year of the biennium beginning with
the first fiscal year of the next biennial budget cycle.''.
(g) Committee Views of Plans and Reports.--Section 301(d) of the
Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the
end ``Each committee of the Senate or the House of Representatives
shall review the strategic plans, performance plans, and performance
reports, required under section 306 of title 5, United States Code, and
sections 1115 and 1116 of title 31, United States Code, of all agencies
under the jurisdiction of the committee. Each committee may provide its
views on such plans or reports to the Committee on the Budget of the
applicable House.''.
SEC. 129. BIENNIAL APPROPRIATION BILLS.
(a) In the House of Representatives.--Clause 2(a) of rule XXI of
the Rules of the House of Representatives is amended by adding at the
end the following new subparagraph:
``(3)(A) Except as provided by subdivision (B), an appropriation
may not be reported in a general appropriation bill (other than a
supplemental appropriation bill), and may not be in order as an
amendment thereto, unless it provides new budget authority or
establishes a level of obligations under contract authority for each
fiscal year of a biennium.
``(B) Subdivision (A) does not apply with respect to an
appropriation for a single fiscal year for any program, project, or
activity if the bill or amendment thereto containing that appropriation
includes a provision expressly stating the following: `Congress finds
that no additional funding beyond one fiscal year will be required and
the [Insert name of applicable program, project, or activity] will be
completed or terminated after the amount provided has been expended.'.
``(C) For purposes of paragraph (b), the statement set forth in
subdivision (B) with respect to an appropriation for a single fiscal
year for any program, project, or activity may be included in a general
appropriation bill or amendment thereto.''.
(b) Conforming Amendment.--Clause 5(b)(1) of rule XXII of the House
of Representatives is amended by striking ``or (c)'' and inserting ``or
(3) or 2(c)''.
SEC. 130. ASSISTANCE BY FEDERAL AGENCIES TO STANDING COMMITTEES OF THE
SENATE AND THE HOUSE OF REPRESENTATIVES.
(a) Information Regarding Agency Appropriations Requests.--To
assist each standing committee of the House of Representatives and the
Senate in carrying out its responsibilities, the head of each Federal
agency which administers the laws or parts of laws under the
jurisdiction of such committee shall provide to such committee such
studies, information, analyses, reports, and assistance as may be
requested by the chairman and ranking minority member of the committee.
(b) Information Regarding Agency Program Administration.--To assist
each standing committee of the House of Representatives and the Senate
in carrying out its responsibilities, the head of any agency shall
furnish to such committee documentation, containing information
received, compiled, or maintained by the agency as part of the
operation or administration of a program, or specifically compiled
pursuant to a request in support of a review of a program, as may be
requested by the chairman and ranking minority member of such
committee.
(c) Summaries by Comptroller General.--Within thirty days after the
receipt of a request from a chairman and ranking minority member of a
standing committee having jurisdiction over a program being reviewed
and studied by such committee under this section, the Comptroller
General of the United States shall furnish to such committee summaries
of any audits or reviews of such program which the Comptroller General
has completed during the preceding six years.
(d) Congressional Assistance.--Consistent with their duties and
functions under law, the Comptroller General of the United States, the
Director of the Congressional Budget Office, and the Director of the
Congressional Research Service shall continue to furnish (consistent
with established protocols) to each standing committee of the House of
Representatives or the Senate such information, studies, analyses, and
reports as the chairman and ranking minority member may request to
assist the committee in conducting reviews and studies of programs
under this section.
Subtitle D--Prevention of Government Shutdown
SEC. 141. AMENDMENT TO TITLE 31.
(a) In General.--Chapter 13 of title 31, United States Code, is
amended by inserting after section 1310 the following new section:
``Sec. 1311. Continuing appropriations
``(a)(1) If any regular appropriation bill for a fiscal year (or,
if applicable, for each fiscal year in a biennium) does not become law
before the beginning of such fiscal year or a joint resolution making
continuing appropriations is not in effect, there are appropriated, out
of any money in the Treasury not otherwise appropriated, and out of
applicable corporate or other revenues, receipts, and funds, such sums
as may be necessary to continue any project or activity for which funds
were provided in the preceding fiscal year--
``(A) in the corresponding regular appropriation Act for
such preceding fiscal year; or
``(B) if the corresponding regular appropriation bill for
such preceding fiscal year did not become law, then in a joint
resolution making continuing appropriations for such preceding
fiscal year.
``(2) Appropriations and funds made available, and authority
granted, for a project or activity for any fiscal year pursuant to this
section shall be at a rate of operations not in excess of the lower
of--
``(A) the rate of operations provided for in the regular
appropriation Act providing for such project or activity for
the preceding fiscal year;
``(B) in the absence of such an Act, the rate of operations
provided for such project or activity pursuant to a joint
resolution making continuing appropriations for such preceding
fiscal year;
``(C) the rate of operations provided for in the regular
appropriation bill as passed by the House of Representatives or
the Senate for the fiscal year in question, except that the
lower of these two versions shall be ignored for any project or
activity for which there is a budget request if no funding is
provided for that project or activity in either version; or
``(D) the annualized rate of operations provided for in the
most recently enacted joint resolution making continuing
appropriations for part of that fiscal year or any funding
levels established under the provisions of this Act.
``(3) The applicable rate of operations otherwise determined under
paragraph (2) for any project or activity for any fiscal year shall be
reduced as follows:
``(A) Beginning January 1, by 1 percent for a project or
activity covered by this section at any time during the period
of January 1 through March 31.
``(B) Beginning April 1, by 2 percent for a project or
activity covered by this section at any time during the period
of April 1 through June 30.
``(C) Beginning July 1, by 3 percent for a project or
activity covered by this section at any time during the period
of July 1 through September 30.
``(4) Appropriations and funds made available, and authority
granted, for any fiscal year pursuant to this section for a project or
activity shall be available for the period beginning with the first day
of a lapse in appropriations and ending with the earlier of--
``(A) the date on which the applicable regular
appropriation bill for such fiscal year becomes law (whether or
not such law provides for such project or activity) or a
continuing resolution making appropriations becomes law, as the
case may be; or
``(B) the last day of such fiscal year.
``(b) An appropriation or funds made available, or authority
granted, for a project or activity for any fiscal year pursuant to this
section shall be subject to the terms and conditions imposed with
respect to the appropriation made or funds made available for the
preceding fiscal year, or authority granted for such project or
activity under current law.
``(c) Appropriations and funds made available, and authority
granted, for any project or activity for any fiscal year pursuant to
this section shall cover all obligations or expenditures incurred for
such project or activity during the portion of such fiscal year for
which this section applies to such project or activity.
``(d) Expenditures made for a project or activity for any fiscal
year pursuant to this section shall be charged to the applicable
appropriation, fund, or authorization whenever a regular appropriation
bill or a joint resolution making continuing appropriations until the
end of a fiscal year providing for such project or activity for such
period becomes law.
``(e) This section shall not apply to a project or activity during
a fiscal year if any other provision of law (other than an
authorization of appropriations)--
``(1) makes an appropriation, makes funds available, or
grants authority for such project or activity to continue for
such period; or
``(2) specifically provides that no appropriation shall be
made, no funds shall be made available, or no authority shall
be granted for such project or activity to continue for such
period.
``(f) For purposes of this section, the term `regular appropriation
bill' means any annual appropriation bill making appropriations,
otherwise making funds available, or granting authority, for any of the
following categories of projects and activities:
``(1) Agriculture, rural development, Food and Drug
Administration, and related agencies programs.
``(2) The Departments of Commerce, Justice, and State, the
Judiciary, and related agencies.
``(3) The Department of Defense.
``(4) The government of the District of Columbia and other
activities chargeable in whole or in part against the revenues
of the District.
``(5) Energy and water development.
``(6) Foreign operations, export financing, and related
programs.
``(7) The Department of Homeland Security.
``(8) The Department of the Interior and related agencies.
``(9) The Departments of Labor, Health and Human Services,
and Education, and related agencies.
``(10) The Legislative Branch.
``(11) Military construction, family housing, and base
realignment and closure for the Department of Defense.
``(12) The Departments of Transportation and Treasury, and
independent agencies.
``(13) The Departments of Veterans Affairs and Housing and
Urban Development, and sundry independent agencies, boards,
commissions, corporations, and offices.''.
(b) Clerical Amendment.--The analysis of chapter 13 of title 31,
United States Code, is amended by inserting after the item relating to
section 1310 the following new item:
``1311. Continuing appropriations.''.
Subtitle E--The Baseline
SEC. 151. ELIMINATION OF INFLATION ADJUSTMENT.
Section 257(c) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended--
(1) in paragraph (1) by striking ``for inflation as
specified in paragraph (5),''; and
(2) by striking paragraph (5) and redesignating paragraph
(6) as paragraph (5).
SEC. 152. THE PRESIDENT'S BUDGET.
(a) Paragraph (5) of section 1105(a) of title 31, United States
Code, is amended to read as follows:
``(5) except as provided in subsection (b) of this section,
estimated expenditures and appropriations for the current year
and estimated expenditures and proposed appropriations the
President decides are necessary to support the Government in
the fiscal year for which the budget is submitted and the 4
fiscal years following that year, and, except for detailed
budget estimates, the percentage change from the current year
to the fiscal year for which the budget is submitted for
estimated expenditures and for appropriations.''.
(b) Section 1105(a)(6) of title 31, United States Code, is amended
to read as follows:
``(6) estimated receipts of the Government in the current
year and the fiscal year for which the budget is submitted and
the 4 fiscal years after that year under--
``(A) laws in effect when the budget is submitted;
and
``(B) proposals in the budget to increase revenues,
and the percentage change (in the case of each category
referred to in subparagraphs (A) and (B)) between the current
year and the fiscal year for which the budget is submitted and
between the current year and each of the 9 fiscal years after
the fiscal year for which the budget is submitted.''.
(c) Section 1105(a)(12) of title 31, United States Code, is amended
to read as follows:
``(12) for each proposal in the budget for legislation that
would establish or expand a Government activity or function, a
table showing--
``(A) the amount proposed in the budget for
appropriation and for expenditure because of the
proposal in the fiscal year for which the budget is
submitted;
``(B) the estimated appropriation required because
of the proposal for each of the 4 fiscal years after
that year that the proposal will be in effect; and
``(C) the estimated amount for the same activity or
function, if any, in the current fiscal year,
and, except for detailed budget estimates, the percentage
change (in the case of each category referred to in
subparagraphs (A), (B), and (C)) between the current year and
the fiscal year for which the budget is submitted.''.
(d) Section 1105(a)(18) of title 31, United States Code, is amended
by inserting ``new budget authority and'' before ``budget outlays''.
(e) Section 1105(a) of title 31, United States Code, is amended by
adding at the end the following new paragraphs:
``(35) a comparison of levels of estimated expenditures and
proposed appropriations for each function and subfunction in
the current fiscal year and the fiscal year for which the
budget is submitted, along with the proposed increase or
decrease of spending in percentage terms for each function and
subfunction.
``(36) a table on sources of growth in total direct
spending under current law and as proposed in this budget
submission for the budget year and the ensuing 9 fiscal years,
which shall include changes in outlays attributable to the
following: cost-of-living adjustments; changes in the number of
program recipients; increases in medical care prices,
utilization and intensity of medical care; and residual
factors.''.
(f) Section 1109(a) of title 31, United States Code, is amended by
inserting after the first sentence the following new sentence: ``For
discretionary spending, these estimates shall assume the levels set
forth in the discretionary spending limits under section 251(b) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as adjusted,
for the appropriate fiscal years (and if no such limits are in effect,
these estimates shall assume the adjusted levels for the most recent
fiscal year for which such levels were in effect).''.
SEC. 153. THE CONGRESSIONAL BUDGET.
Section 301(e) of the Congressional Budget Act of 1974 (as amended
by section 103) is further amended--
(1) in paragraph (1), by inserting at the end the
following: ``The basis of deliberations in developing such
joint resolution shall be the estimated budgetary levels for
the preceding fiscal year. Any budgetary levels pending before
the committee and the text of the joint resolution shall be
accompanied by a document comparing such levels or such text to
the estimated levels of the prior fiscal year. Any amendment
offered in the committee that changes a budgetary level and is
based upon a specific policy assumption for a program, project,
or activity shall be accompanied by a document indicating the
estimated amount for such program, project, or activity in the
current year.''; and
(2) in paragraph (2), by striking ``and'' at the end of
subparagraph (H) (as redesignated), by striking the period and
inserting ``; and'' at the end of subparagraph (I) (as
redesignated), and by adding at the end the following new
subparagraph:
``(J) a comparison of levels for the current fiscal
year with proposed spending and revenue levels for the
subsequent fiscal years along with the proposed
increase or decrease of spending in percentage terms
for each function.''.
SEC. 154. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.
(a) The first sentence of section 202(e)(1) of the Congressional
Budget Act of 1974 is amended by inserting ``compared to comparable
levels for the current year'' before the comma at the end of
subparagraph (A) and before the comma at the end of subparagraph (B).
(b) Section 202(e)(1) of the Congressional Budget Act of 1974 is
amended by inserting after the first sentence the following new
sentence: ``Such report shall also include a table on sources of
spending growth in total direct spending for the budget year and the
ensuing 4 fiscal years, which shall include changes in outlays
attributable to the following: cost-of-living adjustments; changes in
the number of program recipients; increases in medical care prices,
utilization and intensity of medical care; and residual factors.''.
(c) Section 308(a)(1)(B) of the Congressional Budget Act of 1974 is
amended by inserting ``and shall include a comparison of those levels
to comparable levels for the current fiscal year'' before ``if timely
submitted''.
SEC. 155. TREATMENT OF EMERGENCIES.
Section 257(c) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (as amended by section 151) is further amended by adding at
the end the following new paragraph:
``(6) Emergencies.--Budgetary resources for emergencies
shall be at the level provided in the reserve fund for
emergencies for that fiscal year pursuant to section 301(a)(4)
of the Congressional Budget Act of 1974.''.
TITLE II--PUTTING A LID ON THE FEDERAL BUDGET
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS AND MANDATORIES.
(a) Control of Entitlements and Mandatories.--The Balanced Budget
and Emergency Deficit Control Act of 1985 is amended by adding after
section 252 the following new section:
``SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING.
``(a) Cap on Growth of Entitlements.--Effective for fiscal year
2006 and for each ensuing fiscal year, the total level of direct
spending for all direct spending programs, projects, and activities
(excluding social security) for any such fiscal year shall not exceed
the total level of spending for all such programs, projects, and
activities for the previous fiscal year after the direct spending for
each such program, project, or activity is increased by the inflator
(if any) applicable to that program, project, or activity and the
growth in eligible population for such, project, or activity.
``(b) Sequestration.--Within 15 days after Congress adjourns to end
a session (other than of the second session of the One Hundred Eighth
Congress), and on the same day as a sequestration (if any) under
section 251, there shall be a sequestration to reduce the amount of
direct spending for the fiscal year beginning in the year the Congress
adjourns by any amount necessary to reduce such spending to the level
set forth in subsection (a) unless that amount is less than
$250,000,000.
``(c) Uniform Reductions; Limitations.--The amount required to be
sequestered for the fiscal year under subsection (a) shall be obtained
from nonexempt direct spending accounts by actions taken in the
following order:
``(1) First.--The reductions in the programs specified in
section 256(a) (National Wool Act and special milk), section
256(b) (guaranteed student loans), and section 256(c) (foster
care and adoption assistance) shall be made.
``(2) Second.--Any additional reductions that may be
required shall be achieved by reducing each remaining nonexempt
direct spending account by the uniform percentage necessary to
achieve those additional reductions, except that--
``(A) the low-income programs specified in section
256(d) shall not be reduced by more than 2 percent;
``(B) the retirement and veterans benefits
specified in sections 256(f), (g), and (h) shall not be
reduced by more than 2 percent in the manner specified
in that section; and
``(C) the medicare programs shall not be reduced by
more than 2 percent in the manner specified in section
256(i).
The limitations set forth in subparagraphs (A), (B), and (C)
shall be applied iteratively, and after each iteration the
uniform percentage applicable to all other programs under this
paragraph shall be increased (if necessary) to a level
sufficient to achieve the reductions required by this
paragraph.''.
(b) Table of Contents Amendment.--The table of contents set forth
in 250(c) of the Balanced Budget and Emergency Deficit Control Act of
1985 is amended by adding after the item relating to section 252 the
following new item:
``Sec. 252A. Enforcing controls on direct spending.''.
SEC. 212. EXEMPT PROGRAMS AND ACTIVITIES.
Section 255 of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended to read as follows:
``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
``(a) Social Security Benefits; Tier I Railroad Retirement
Benefits; and Certain Medicare Benefits.--(1) Benefits payable under
the old-age, survivors, and disability insurance program established
under title II of the Social Security Act, and benefits payable under
section 3(a), 3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act of
1974, shall be exempt from reduction under any order issued under this
part.
``(2) Payments made under part A of title XVIII (relating to part A
medicare hospital insurance benefits) of the Social Security Act and
payments made under part C of such title (relating to the Medicare
Advantage program) insofar as they are attributable to part A of
such title shall be exempt from reduction under any order issued under
this part.
``(b) Descriptions and Lists.--The following budget accounts or
activities shall be exempt from sequestration:
``(1) net interest;
``(2) all payments to trust funds from excise taxes or
other receipts or collections properly creditable to those
trust funds;
``(3) all payments from one Federal direct spending budget
account to another Federal budget account; and all
intragovernmental funds including those from which funding is
derived primarily from other Government accounts, except to the
extent that such funds are augmented by direct appropriations
for the fiscal year for which the order is in effect;
``(4) activities resulting from private donations,
bequests, or voluntary contributions to the Government;
``(5) payments from any revolving fund or trust-revolving
fund (or similar activity) that provides deposit insurance or
other Government insurance, Government guarantees, or any other
form of contingent liability, to the extent those payments
result from contractual or other legally binding commitments of
the Government at the time of any sequestration;
``(6) credit liquidating and financing accounts;
``(7) the following accounts, which largely fulfill
requirements of the Constitution or otherwise make payments to
which the Government is committed:
``Administration of Territories, Northern Mariana
Islands Covenant grants (14-0412-0-1-806);
``Armed Forces Retirement Home Trust Fund, payment
of claims (84-8930-0-7-705);
``Bureau of Indian Affairs, miscellaneous payments
to Indians (14-230-0-1-452);
``Bureau of Indian Affairs, miscellaneous trust
funds, tribal trust funds (14-9973-0-7-999);
``Claims, defense;
``Claims, judgments, and relief act (20-185-0-1-
806);
``Compact of Free Association, economic assistance
pursuant to Public Law 99 (14-0414-0-1-806);
``Compensation of the President (11-0001-0-1-802);
``Customs Service, miscellaneous permanent
appropriations (20-9992-0-2-852);
``Eastern Indian land claims settlement fund (14-
2202-0-1-806);
``Farm Credit Administration, Limitation on
Administration Expenses (78-4131-0-3-351);
``Farm Credit System Financial Assistance
Corporation, interest payments (20-1850-0-1-351);
``Internal Revenue collections of Puerto Rico (20-
5737-0-2-852);
``Panama Canal Commission, operating expenses and
capital outlay (95-5190-0-2-403);
``Payments of Vietnam and USS Pueblo prisoner-of-
war claims (15-0104-0-1-153);
``Payments to copyright owners (03-5175-0-2-376);
``Payments to health care trust funds (75-0580-0-1-
571);
``Payments to social security trust funds (75-0404-
0-1-651);
``Payments to the United States territories, fiscal
assistance (14-0418-0-1-801);
``Payments to widows and heirs of deceased Members
of Congress (00-0215-0-1-801);
``Pension Benefit Guaranty Corporation Fund (16-
4204-0-3-601);
``Salaries of Article III judges;
``Washington Metropolitan Area Transit Authority,
interest payments (46-0300-0-1-401);
``(8) the following noncredit special, revolving, or trust-
revolving funds:
``Coinage profit fund (20-5811-0-2-803);
``Comptroller of the Currency;
``Director of the Office of Thrift Supervision;
``Exchange Stabilization Fund (20-4444-0-3-155);
``Federal Housing Finance Board;
``Foreign Military Sales trust fund (11-82232-0-7-
155);
``National Credit Union Administration, central
liquidating facility (25-4470-0-3-373);
``National Credit Union Administration, credit
union insurance fund (25-4468-0-3-373);
``National Credit Union Administration operating
fund (25-4056-0-3-373); and
``Resolution Trust Corporation Revolving Fund (22-
4055-0-3-373);
``(9) Thrift Savings Fund;
``(10) appropriations for the District of Columbia to the
extent they are appropriations of locally raised funds;
``(11)(A) any amount paid as regular unemployment
compensation by a State from its account in the Unemployment
Trust Fund (established by section 904(a) of the Social
Security Act);
``(B) any advance made to a State from the Federal
unemployment account (established by section 904(g) of such
Act) under title XII of such Act and any advance appropriated
to the Federal unemployment account pursuant to section 1203 of
such Act; and
``(C) any payment made from the Federal Employees
Compensation Account (as established under section 909 of such
Act) for the purpose of carrying out chapter 85 of title 5,
United States Code, and funds appropriated or transferred to or
otherwise deposited in such Account; and
``(12)(A) FDIC, Bank Insurance Fund (51-4064-0-3-373);
``(B) FDIC, FSLIC Resolution Fund (51-4065-0-3-373); and
``(C) FDIC, Savings Association Insurance Fund (51-4066-0-
3-373);
``(c) Federal Retirement and Disability Accounts.--The following
Federal retirement and disability accounts shall be exempt from
reduction under any order issued under this part:
``Civil service retirement and disability fund (24-8135-0-
7-602).
``Black Lung Disability Trust Fund (20-8144-0-7-601).
``Foreign Service Retirement and Disability Fund (19-8186-
0-7-602).
``District of Columbia Judicial Retirement and Survivors
Annuity Fund (20-8212-0-7-602).
``Judicial Survivors' Annuities Fund (10-8110-0-7-602).
``Payments to the Railroad Retirement Accounts (60-0113-0-
1-601).
``Tax Court Judges Survivors Annuity Fund (23-8115-0-7-
602).
``Employees Life Insurance Fund (24-8424-0-8-602).
``(d) Federal Administrative Expenses.--
``(1) Notwithstanding any provision of law other than
paragraph (3), administrative expenses incurred by the
departments and agencies, including independent agencies, of
the Government in connection with any program, project,
activity, or account shall be subject to reduction pursuant to
any sequestration order, without regard to any exemption,
exception, limitation, or special rule otherwise applicable
with respect to such program, project, activity, or account,
and regardless of whether the program, project, activity, or
account is self-supporting and does not receive appropriations.
``(2) Payments made by the Government to reimburse or match
administrative costs incurred by a State or political
subdivision under or in connection with any program, project,
activity, or account shall not be considered administrative
expenses of the Government for purposes of this section, and
shall be subject to sequestration to the extent (and only to
the extent) that other payments made by the Government under or
in connection with that program, project, activity, or account
are subject to that reduction or sequestration; except that
Federal payments made to a State as reimbursement of
administrative costs incurred by that State under or in
connection with the unemployment compensation programs
specified in subsection (a)(11) shall be subject to reduction
or sequestration under this part notwithstanding the exemption
otherwise granted to such programs under that subsection.
``(3) Notwithstanding any other provision of law, the
administrative expenses of the following programs shall be
exempt from sequestration:
``(A) Comptroller of the Currency.
``(B) Federal Deposit Insurance Corporation.
``(C) Office of Thrift Supervision.
``(D) National Credit Union Administration.
``(E) National Credit Union Administration, central
liquidity facility.
``(F) Federal Retirement Thrift Investment Board.
``(G) Resolution Funding Corporation.
``(H) Resolution Trust Corporation.
``(I) Board of Governors of the Federal Reserve
System.
``(e) Veterans' Programs.--The following programs shall be exempt
from reduction under any order issued under this part:
``General Post Funds (36-8180-0-7-705).
``Veterans Insurance and Indemnities (36-0120-0-1-701).
``Service-Disabled Veterans Insurance Funds (36-4012-0-3-
701).
``Veterans Reopened Insurance Fund (36-4010-0-3-701).
``Servicemembers' Group Life Insurance Fund (36-4009-0-3-
701).
``Post-Vietnam Era Veterans Education Account (36-8133-0-7-
702).
``National Service Life Insurance Fund (36-8132-0-7-701).
``United States Government Life Insurance Fund (36-8150-0-
7-701).
``Veterans Special Life Insurance Fund (36-8455-0-8-701).
``(f) Optional Exemption of Defense and Homeland Security
Accounts.--
``(1) In general.--The President may, with respect to any
defense or homeland security account, exempt that account from
sequestration or provide for a lower uniform percentage
reduction than would otherwise apply.
``(2) Limitation.--The President may not use the authority
provided by paragraph (1) unless the President notifies the
Congress of the manner in which such authority will be
exercised on or before the date specified in section 254(a) for
the budget year.''.
SEC. 213. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
(a) In General.--Section 256 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended to read as follows:
``SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
``(a) National Wool Act and the Special Milk Program.--Automatic
spending increases are increases in outlays due to changes in indexes
in the following programs:
``(1) National Wool Act; and
``(2) Special milk program.
In those programs all amounts other than the automatic spending
increases shall be exempt from reduction under any sequestration order.
``(b) The Guaranteed Student Loan Program.--(1) Any reductions
which are required to be achieved from the student loan programs
operated pursuant to part B of title IV of the Higher Education Act of
1965 under any sequestration order shall be achieved only from loans
described in paragraphs (2) and (3) by the application of the measures
described in such paragraphs.
``(2) For any loan made during the period beginning on the date
that a sequestration order takes effect with respect to a fiscal year,
the rate used in computing the special allowance payment pursuant to
section 438(b)(2)(A)(iii) of such Act for each of the first four
special allowance payments for such loan shall be adjusted by reducing
such rate by the lesser of--
``(A) 0.40 percent, or
``(B) the percentage by which the rate specified in such
section exceeds 3 percent.
``(3) For any loan made during the period beginning on the date
that a sequestration order takes effect with respect to a fiscal year,
the origination fee which is authorized to be collected pursuant to
section 438(c)(2) of such Act shall be increased by 0.50 percent.
``(c) Foster Care and Adoption Assistance Programs.--Any
sequestration order shall make the reduction otherwise required under
the foster care and adoption assistance programs (established by part E
of title IV of the Social Security Act) only with respect to payments
and expenditures made by States in which increases in foster care
maintenance payment rates or adoption assistance payment rates (or
both) are to take effect during the fiscal year involved, and only to
the extent that the required reduction can be accomplished by applying
a uniform percentage reduction to the Federal matching payments that
each such State would otherwise receive under section 474 of that Act
(for such fiscal year) for that portion of the State's payments
attributable to the increases taking effect during that year. No
State's matching payments from the Government for foster care
maintenance payments or for adoption assistance maintenance payments
may be reduced by a percentage exceeding the applicable domestic
sequestration percentage. No State may, after the date of the enactment
of this Act, make any change in the timetable for making payments under
a State plan approved under part E of title IV of the Social Security
Act which has the effect of changing the fiscal year in which
expenditures under such part are made.
``(d) Low-Income Programs.--(1) Benefit payments or payments to
States or other entities for the programs listed in paragraph (2) shall
not be reduced by more than 2 percent under any sequestration order.
When reduced under an end-of-session sequestration order, those benefit
reductions shall occur starting with the payment made at the start of
January. When reduced under a within-session sequestration order, those
benefit reductions shall occur starting with the next periodic payment.
``(2) The programs referred to in paragraph (1) are the following:
``Child Nutrition (12-3539-0-1-605).
``Food Stamp Programs (12-3505-0-1-605).
``Grants to States for Medicaid (75-0512-0-1-551).
``State Children's Health Insurance Fund (75-0515-0-1-551).
``Supplemental Security Income Program (75-0406-0-1-609).
``Temporary Assistance for Needy Families (75-1552-0-1-
609).
``Special supplemental nutrition program for women,
infants, and children (WIC) (12-3510-0-1-605).
``(e) Veterans' Medical Care.--The maximum permissible reduction in
budget authority for Veterans' medical care (36-0160-0-1-703) for any
fiscal year, pursuant to an order issued under section 254, shall be 2
percent.
``(f) Federal Retirement Programs.--
``(1) For each of the programs listed in paragraph (2) and
except as provided in paragraph (3), monthly (or other
periodic) benefit payments shall be reduced by the uniform
percentage applicable to direct spending sequestrations for
such programs, which shall in no case exceed 2 percent under
any sequestration order. When reduced under an end-of-session
sequestration order, those benefit reductions shall occur
starting with the payment made at the start of January or 7
weeks after the order is issued, whichever is later. When
reduced under a within-session sequestration order, those
benefit reductions shall occur starting with the next periodic
payment.
``(2) The programs subject to paragraph (1) are:
``Central Intelligence Agency Retirement and
Disability Fund (56-3400-0-1-054).
``Comptrollers General Retirement System (05-0107-
0-1-801).
``Judicial Officer' Retirement Fund (10-8122-0-7-
602).
``Claims Judges' Retirement Fund (10-8124-0-7-602).
``Pensions for former Presidents (47-0105-0-1-802).
``National Oceanic and Atmospheric Administration
Retirement (13-1450-0-1-306).
``Railroad 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).
``Payments to Civil Service Retirement and
Disability Fund (24-0200-0-1-805).
``Payments to the Foreign Service Retirement and
Disability Fund (72-1036-0-1-153).
``Payments to Judiciary Trust Funds (10-0941-0-1-
752).
``(g) Veterans Programs.--To achieve the total percentage reduction
required by any order issued under this part, the percentage reduction
that shall apply to payments under the following programs shall in no
event exceed 2 percent:
``Canteen Service Revolving Fund (36-4014-0-3-705).
``Medical Center Research Organizations (36-4026-0-3-703).
``Disability Compensation Benefits (36-0102-0-1-701).
``Education Benefits (36-0137-0-1-702).
``Vocational Rehabilitation and Employment Benefits (36-
0135-0-1-702).
``Pensions Benefits (36-0154-0-1-701).
``Burial Benefits (36-0139-0-1-701).
``Guaranteed Transitional Housing Loans For Homeless
Veterans Program Account (36-1119-0-1-704).
``Housing Direct Loan Financing Account (36-4127-0-1-704).
``Housing Guaranteed Loan Financing Account (36-4129-0-3-
704).
``Vocational Rehabilitation and Education Direct Loan
Financing Account (36-4259-0-3-702).
``(h) Military Retirement.--To achieve the total percentage
reduction in military retirement required by any order issued under
this part, the percentage reduction that shall apply to payments under
the Military retirement fund (97-8097-0-7-602) and payments to the
military retirement fund (97-0040-0-1-054) shall in no event exceed 2
percent.
``(i) Medicare Program.--
``(1) Calculation of reduction in individual payment
amounts.--To achieve the total percentage reduction in those
programs required by any order issued under this part, the
percentage reduction that shall apply to payments under the
health insurance programs under title XVIII of the Social
Security Act (other than payments described in section
255(a)(2)) for services furnished after any sequestration order
is issued shall be such that the reduction made in payments
under that order shall achieve the required total percentage
reduction in those payments for that fiscal year as determined
on a 12-month basis. However, the percentage reduction under
any such program shall in no case exceed 2 percent under any
sequestration order.
``(2) Timing of application of reductions.--If a reduction
is made under paragraph (1) in payment amounts pursuant to a
sequestration order, the reduction shall be applied to payment
for services furnished after the effective date of the order.
``(3) No increase in beneficiary charges in assignment-
related cases.--If a reduction in payment amounts is made under
paragraph (1) for services for which payment under part B of
title XVIII of the Social Security Act is made on the basis of
an assignment described in section 1842(b)(3)(B)(ii), in
accordance with section 1842(b)(6)(B), or under the procedure
described in section 1870(f)(1) of such Act, the person
furnishing the services shall be considered to have accepted
payment of the reasonable charge for the services, less any
reduction in payment amount made pursuant to a sequestration
order, as payment in full.
``(4) Application to parts c and d.--The reductions
otherwise required under parts C and D of title XVIII of the
Social Security Act with respect to a fiscal year shall be
applied to the calendar that begins after the end of the fiscal
year to which the applicable sequestration order applies.
``(j) Federal Pay.--
``(1) In general.--For purposes of any order issued under
section 254, new budget authority to pay Federal personnel
shall be reduced by the applicable uniform percentage, but no
sequestration order may reduce or have the effect of reducing
the rate of pay to which any individual is entitled under any
statutory pay system (as increased by any amount payable under
section 5304 of title 5, United States Code, or section 302 of
the Federal Employees Pay Comparability Act of 1990) or the
rate of any element of military pay to which any individual is
entitled under title 37, United States Code, or any increase in
rates of pay which is scheduled to take effect under section
5303 of title 5, United States Code, section 1009 of title 37,
United States Code, or any other provision of law.
``(2) Definitions.--For purposes of this subsection:
``(A) The term `statutory pay system' shall have
the meaning given that term in section 5302(1) of title
5, United States Code.
``(B) The term `elements of military pay' means--
``(i) the elements of compensation of
members of the uniformed services specified in
section 1009 of title 37, United States Code,
``(ii) allowances provided members of the
uniformed services under sections 403a and 405
of such title, and
``(iii) cadet pay and midshipman pay under
section 203(c) of such title.
``(C) The term `uniformed services' shall have the
meaning given that term in section 101(3) of title 37,
United States Code.
``(k) Child Support Enforcement Program.--Any sequestration order
shall accomplish the full amount of any required reduction in
expenditures under sections 455 and 458 of the Social Security Act by
reducing the Federal matching rate for State administrative costs under
such program, as specified (for the fiscal year involved) in section
455(a) of such Act, to the extent necessary to reduce such expenditures
by that amount.
``(l) Extended Unemployment Compensation.--(1) A State may reduce
each weekly benefit payment made under the Federal-State Extended
Unemployment Compensation Act of 1970 for any week of unemployment
occurring during any period with respect to which payments are reduced
under an order issued under this title by a percentage not to exceed
the percentage by which the Federal payment to the State under section
204 of such Act is to be reduced for such week as a result of such
order.
``(2) A reduction by a State in accordance with subparagraph (A)
shall not be considered as a failure to fulfill the requirements of
section 3304(a)(11) of the Internal Revenue Code of 1954.
``(m) Commodity Credit Corporation.--
``(1) Powers and authorities of the commodity credit
corporation.--This title shall not restrict the Commodity
Credit Corporation in the discharge of its authority and
responsibility as a corporation to buy and sell commodities in
world trade, to use the proceeds as a revolving fund to meet
other obligations and otherwise operate as a corporation, the
purpose for which it was created.
``(2) Reduction in payments made under contracts.--(A)
Payments and loan eligibility under any contract entered into
with a person by the Commodity Credit Corporation prior to the
time any sequestration order has been issued shall not be
reduced by an order subsequently issued. Subject to
subparagraph (B), after any sequestration order is issued for a
fiscal year, any cash payments made by the Commodity Credit
Corporation--
``(i) under the terms of any one-year contract
entered into in or after such fiscal year and after the
issuance of the order; and
``(ii) out of an entitlement account,
to any person (including any producer, lender, or guarantee
entity) shall be subject to reduction under the order.
``(B) Each contract entered into with producers or producer
cooperatives with respect to a particular crop of a commodity
and subject to reduction under subparagraph (A) shall be
reduced in accordance with the same terms and conditions. If
some, but not all, contracts applicable to a crop of a
commodity have been entered into prior to the issuance of any
sequestration order, the order shall provide that the necessary
reduction in payments under contracts applicable to the
commodity be uniformly applied to all contracts for succeeding
crops of the commodity, under the authority provided in
paragraph (3).
``(3) Delayed reduction in outlays permissible.--
Notwithstanding any other provision of this title, if any
sequestration order is issued with respect to a fiscal year,
any reduction under the order applicable to contracts described
in paragraph (2) may provide for reductions in outlays for the
account involved to occur in the fiscal years following the
fiscal year to which the order applies.
``(4) Uniform percentage rate of reduction and other
limitations.--All reductions described in paragraph (2) that
are required to be made in connection with any sequestration
order with respect to a fiscal year--
``(A) shall be made so as to ensure that outlays
for each program, project, activity, or account
involved are reduced by a percentage rate that is
uniform for all such programs, projects, activities,
and accounts, and may not be made so as to achieve a
percentage rate of reduction in any such item exceeding
the rate specified in the order; and
``(B) with respect to commodity price support and
income protection programs, shall be made in such
manner and under such procedures as will attempt to
ensure that--
``(i) uncertainty as to the scope of
benefits under any such program is minimized;
``(ii) any instability in market prices for
agricultural commodities resulting from the
reduction is minimized; and
``(iii) normal production and marketing
relationships among agricultural commodities
(including both contract and non-contract
commodities) are not distorted.
In meeting the criterion set out in clause (iii) of
subparagraph (B) of the preceding sentence, the
President shall take into consideration that reductions
under an order may apply to programs for two or more
agricultural commodities that use the same type of
production or marketing resources or that are
alternative commodities among which a producer could
choose in making annual production decisions.
``(5) Certain authority not to be limited.--Nothing in this
title shall limit or reduce in any way any appropriation that
provides the Commodity Credit Corporation with funds to cover
the Corporation's net realized losses.
``(n) Postal Service Fund.--Notwithstanding any other provision of
law, any sequestration of the Postal Service Fund shall be accomplished
by a payment from that Fund to the General Fund of the Treasury, and
the Postmaster General of the United States shall make the full amount
of that payment during the fiscal year to which the presidential
sequestration order applies.
``(o) Effects of Sequestration.--The effects of sequestration shall
be as follows:
``(1) Budgetary resources sequestered from any account
other than an entitlement trust, special, or revolving fund
account shall revert to the Treasury and be permanently
canceled.
``(2) Except as otherwise provided, the same percentage
sequestration shall apply to all programs, projects, and
activities within a budget account (with programs, projects,
and activities as delineated in the appropriation Act or
accompanying report for the relevant fiscal year covering that
account, or for accounts not included in appropriation Acts, as
delineated in the most recently submitted President's budget).
``(3) Administrative regulations or similar actions
implementing a sequestration shall be made within 120 days of
the sequestration order. To the extent that formula allocations
differ at different levels of budgetary resources within an
account, program, project, or activity, the sequestration shall
be interpreted as producing a lower total appropriation, with
that lower appropriation being obligated as though it had been
the pre-sequestration appropriation and no sequestration had
occurred.
``(4) Except as otherwise provided, obligations in
sequestered direct spending accounts shall be reduced in the
fiscal year in which a sequestration occurs and in all
succeeding fiscal years.
``(5) If an automatic spending increase is sequestered, the
increase (in the applicable index) that was disregarded as a
result of that sequestration shall not be taken into account in
any subsequent fiscal year.
``(6) Except as otherwise provided, sequestration in
accounts for which obligations are indefinite shall be taken in
a manner to ensure that obligations in the fiscal year of a
sequestration and succeeding fiscal years are reduced, from the
level that would actually have occurred, by the applicable
sequestration percentage.''.
(b) Conforming Amendment.--The table of contents set forth in
250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985
is amended by amending the item relating to section 256 to read as
follows:
``Sec. 256. Exceptions, limitations, and special rules.''.
SEC. 214. POINT OF ORDER.
(a) Entitlement Point of Order.--Section 312 of the Congressional
Budget Act of 1974 is amended by adding at the end the following new
subsection:
``(g) Entitlement Point of Order.--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--
``(1) increases aggregate level of direct spending for any
ensuing fiscal year or
``(2) includes any provision that has the effect of
modifying the application of section 252A of the Balanced
Budget and Emergency Deficit Control Act of 1985 to any
entitlement program subject to sequestration or exempt from
sequestration under such Act.''.
SEC. 215. TECHNICAL AND CONFORMING AMENDMENTS.
The Balanced Budget and Emergency Deficit Control Act of 1985 is
amended as follows:
(1) Section 251(a)(1) is amended by inserting ``, section
252A,'' after ``section 252''.
(2) Section 254(c)(4)(B) is amended by inserting ``or
section 252A'' after ``section 252''.
(3) Section 254(c) is amended by redesignating paragraph
(5) as paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Direct spending control sequestration reports.--The
preview reports shall set forth, for the current year and the
budget year, estimates for each of the following:
``(A) The total level of direct spending for all
programs, projects, and activities (excluding social
security).
``(B) The sequestration percentage or (if the
required sequestration percentage is greater than the
maximum allowable percentage for medicare) percentages
necessary to comply with section 252A.''.
(4) Section 254(f) is amended by redesignating paragraphs
(4) and (5) as paragraphs (5) and (6) and by inserting after
paragraph (3) the following new paragraph:
``(4) Direct spending control sequestration reports.--The
final reports shall contain all the information required in the
direct spending control sequestration preview reports. In
addition, these reports shall contain, for the budget year, for
each account to be sequestered, estimates of the baseline level
of sequesterable budgetary resources and resulting outlays and
the amount of budgetary resources to be sequestered and
resulting outlay reductions. The reports shall also contain
estimates of the effects on outlays of the sequestration in
each outyear for direct spending programs.''.
(5) Section 258C(a)(1) is amended by inserting ``, 252A,''
after ``section 252''.
SEC. 216. ESTABLISHMENT OF FAMILY BUDGET PROTECTION MANDATORY ACCOUNT.
The Rules of the House of Representatives are amended by
redesignating rule XXVIII as rule XXX and by inserting after rule XXVII
the following new rule:
``RULE XXVIII
``family budget protection mandatory account.
``1. (a) The chairman of the Committee on the Budget shall maintain
an account to be known as the `Family Budget Protection Mandatory
Account'. The Account shall be divided into entries corresponding to
the House committees that received allocations under section 302(a) of
the Congressional Budget Act of 1974 in the most recently adopted
concurrent resolution on the budget, except that it shall not include
the Committee on Appropriations and each entry shall consist of the
`First Year Family Budget Protection Balance' and the `Five Year Family
Budget Protection Balance'.
``(b) Each entry shall consist only of amounts credited to it under
paragraph (c). No entry of a negative amount shall be made.
``(c) Whenever a Member offers an amendment to a bill that reduces
the amount of mandatory budget authority provided either under current
law or proposed to be provided by the bill under consideration, that
Member may state the portion of such reduction achieved in the first
year covered by the most recently adopted concurrent resolution on the
budget and in addition the portion of such reduction achieved in the
first five years covered by the most recently adopted concurrent
resolution on the budget that shall be--
``(1) credited to the First Year Family Budget Protection
Balance and the Five Year Family Budget Protection Balance;
``(2) used to offset an increase in other new budget
authority; or
``(3) allowed to remain within the applicable section
302(a) allocation.
If no such statement is made, the amount of reduction in new budget
authority resulting from the amendment shall be credited to the First
Year Family Budget Protection Balance and the Five Year Family Budget
Protection Balance, as applicable, if the amendment is agreed to.
``2. (a) Except as provided by paragraph (b), the chairman of the
Committee on the Budget shall, upon the engrossment of any bill, other
than an appropriation bill, by the House, credit to the applicable
entry balances amounts of new budget authority and outlays equal to the
net amounts of reductions in budget authority and in outlays resulting
from amendments agreed to by the House to that bill.
``(b) When computing the net amounts of reductions in budget
authority and in outlays resulting from amendments agreed to by the
House to a bill, the chairman of the Committee on the Budget shall only
count those portions of such amendments agreed to that were so
designated by the Members offering such amendments as amounts to be
credited to the First Year Family Budget Protection Balance and the
Five Year Family Budget Protection Balance, or that fall within the
last sentence of clause 1.
``3. The chairman of the Committee on the Budget shall maintain a
running tally of the amendments adopted reflecting increases and
decreases of budget authority in the bill as reported. This tally shall
be available to Members during consideration of any bill by the House.
``4. For the purposes of enforcing section 302(a) of the
Congressional Budget Act of 1974, upon the engrossment of any bill,
other than an appropriation bill, by the House, the amount of budget
authority and outlays calculated pursuant to paragraph 2(b) shall be
counted against the 302(a) allocation provided to the applicable
committee or committees which reported the bill as if the amount
calculated pursuant to clause 2(b) was included in the bill just
engrossed.
``5. As used in this rule, the term `appropriation bill' means any
general or special appropriation bill, and any bill or joint resolution
making supplemental, deficiency, or continuing appropriations through
the end of fiscal year 2005 or any subsequent fiscal year, as the case
may be.''.
Subtitle B--Discretionary Spending Limits
SEC. 221. ENFORCING DISCRETIONARY SPENDING LIMITS.
(a) Discretionary Spending Limits.--Sections 251(b) and (c) of the
Balanced Budget and Emergency Deficit Control of Act of 1985 are
amended to read as follows:
``(b) Discretionary Spending Limit.--As used in this part, the term
`discretionary spending limit' means--
``(1) with respect to fiscal year 2006--
``(A) $816,697,800,000 in new budget authority of
which no more than $431,533,400,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category;
``(2) with respect to fiscal year 2007--
``(A) $834,665,100,000 in new budget authority of
which no more than $441,027,200,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category;
``(3) with respect to fiscal year 2008--
``(A) $853,027,800,000 in new budget authority of
which no more than $450,729,800,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category;
``(4) with respect to fiscal year 2009--
``(A) $871,794,400,000 in new budget authority of
which no more than $460,645,800,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category;
``(5) with respect to fiscal year 2010--
``(A) $890,973,900,000 in new budget authority of
which no more than $470,780,000,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category;
``(6) with respect to fiscal year 2011--
``(A) $910,575,300,000 in new budget authority of
which no more than $481,137,200,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category;
``(7) with respect to fiscal year 2012--
``(A) $930,607,900,000 in new budget authority of
which no more than $491,722,200,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category;
``(8) with respect to fiscal year 2013--
``(A) $951,081,300,000 in new budget authority of
which no more than $502,540,100,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category; and
``(9) with respect to fiscal year 2014--
``(A) $972,005,100,000 in new budget authority of
which no more than $513,596,000,000 shall be for the
nondefense category; and
``(B) $____ in outlays of which no more than $____
shall be for the nondefense category;''.
(b) Discretionary Spending Limit Point of Order.--Section 312 of
the Congressional Budget Act of 1974 (as amended by section 214(a)) is
further amended by adding at the end the following new subsection:
``(h) Discretionary Spending Limit Point of Order.--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--
``(1) increases the discretionary spending limits for any
ensuing fiscal year after the budget year; or
``(2) would cause the discretionary spending limits for the
budget year to be breached.''.
(c) Advance Appropriation Point of Order.--Section 312 of the
Congressional Budget Act of 1974 (as amended by this section) is
further amended by adding at the end the following new subsection:
``(i) Advance Appropriation Point of Order.--It shall not be in
order in the House of Representatives or the Senate to consider any
appropriation bill or joint resolution, or amendment thereto or
conference report thereon, that provides advance discretionary new
budget authority that first becomes available for any fiscal year after
the budget year at an amount for any program, project, or activity
above the amount of appropriations for fiscal year 2004 for such
program, project, or activity.''.
SEC. 222. ESTABLISHMENT OF FAMILY BUDGET PROTECTION DISCRETIONARY
ACCOUNT.
The Rules of the House of Representatives are amended by inserting
after rule XXVIII the following new rule:
``RULE XXIX
``family budget protection discretionary account.
``1. (a) The chairman of the Committee on the Budget shall maintain
an account to be known as the `Family Budget Protection Discretionary
Account'. The Account shall be divided into entries corresponding to
the subcommittees of the Committee on Appropriations and each entry
shall consist of the `Family Budget Protection Balance'.
``(b) Each entry shall consist only of amounts credited to it under
paragraph (c). No entry of a negative amount shall be made.
``(c) Whenever a Member offers an amendment to an appropriation
bill to reduce new budget authority in any account, that Member may
state the portion of such reduction that shall be--
``(1) credited to the Family Budget Protection Balance;
``(2) used to offset an increase in new budget authority in
any other account; or
``(3) allowed to remain within the applicable section
302(b) suballocation.
If no such statement is made, the amount of reduction in new budget
authority resulting from the amendment shall be credited to the Family
Budget Protection Balance, as applicable, if the amendment is agreed
to.
``2. (a) Except as provided by paragraph (b), the chairman of the
Committee on the Budget shall, upon the engrossment of any
appropriation bill by the House of Representatives, credit to the entry
balance amounts of new budget authority and outlays equal to the net
amounts of reductions in new budget authority and in outlays resulting
from amendments agreed to by the House to that bill.
``(b) When computing the net amounts of reductions in new budget
authority and in outlays resulting from amendments agreed to by the
House to an appropriation bill, the chairman of the Committee on the
Budget shall only count those portions of such amendments agreed to
that were so designated by the Members offering such amendments as
amounts to be credited to the Family Budget Protection Balance, or that
fall within the last sentence of clause 1.
``3. The chairman of the Committee on the Budget shall maintain a
running tally of the amendments adopted reflecting increases and
decreases of budget authority in the bill as reported. This tally shall
be available to Members during consideration of any appropriation bill
by the House.
``4. (a) For purposes of enforcing section 302(a) of the
Congressional Budget Act of 1974, upon the engrossment of any
appropriation bill by the House, the amount of budget authority and
outlays calculated pursuant to clause 2(b) shall be counted against the
302(a) allocation provided to the Committee on Appropriations as if the
amount calculated pursuant to such clause was included in the bill just
engrossed.
``(b) For purposes of enforcing section 302(b) of the Congressional
Budget Act of 1974, upon the engrossment of any appropriation bill by
the House, the 302(b) allocation provided to the subcommittee for the
bill just engrossed shall be deemed to have been reduced by the amount
of budget authority and outlays calculated, pursuant to clause 2(b).
``5. As used in this rule, the term `appropriation bill' means any
general or special appropriation bill, and any bill or joint resolution
making supplemental, deficiency, or continuing appropriations through
the end of fiscal year 2005 or any subsequent fiscal year or biennium,
as the case may be.''.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE
Subtitle A--Sunsetting
SEC. 301. REAUTHORIZATION OF DISCRETIONARY PROGRAMS AND UNEARNED
ENTITLEMENTS.
(a) Fiscal Year 2008.--Effective October 1, 2007, spending
authority for each unearned entitlement and high-cost discretionary
spending program is frozen at then current levels unless such spending
authority is reauthorized after the date of enactment of this Act.
(b) Fiscal Year 2009.--Effective October 1, 2008, spending
authority for each discretionary spending program (not including high-
cost discretionary spending programs) is frozen at then current levels
unless such spending authority is reauthorized after the date of
enactment of this Act.
(c) Definitions.--For purposes of this title--
(1) the term ``unearned entitlement'' means an entitlement
not earned by service or paid for in total or in part by
assessments or contributions such as Social Security, veterans'
benefits, retirement programs, and medicare; and
(2) the term ``high-cost discretionary program'' means the
most expensive one-third of discretionary program within each
budget function account.
SEC. 302. POINT OF ORDER.
(a) In General.--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
appropriates funds above current levels unless such appropriation has
been previously authorized by law.
(b) Waiver or Suspension.--This section may be waived or suspended
in the House of Representatives or the Senate only by the affirmative
vote of two-thirds of the Members, duly chosen and sworn.
SEC. 303. DECENNIAL SUNSETTING.
(a) First Decennial Census Year.--Effective on the first day of the
fiscal year beginning in the first decennial census year after the year
2010 and each 10 years thereafter, the spending authority described in
section 301(a) is terminated unless such spending authority is
reauthorized after the last date the spending authority was required to
be reauthorized under this title.
(b) First Decennial Census Year.--Effective on the first day of the
fiscal year beginning in the year after the first decennial census year
after the year 2010 and each 10 years thereafter, the spending
authority described in section 301(b) is terminated unless such
spending authority is reauthorized after the last date the spending
authority was required to be reauthorized under this title.
Subtitle B--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
SEC. 311. ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS.
(a) In General.--Part B of title X of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.) is amended by
redesignating sections 1013 through 1017 as sections 1014 through 1018,
respectively, and by inserting after section 1012 the following new
section:
``enhanced consideration of certain proposed rescissions
``Sec. 1013. (a) Proposed Rescission of Budget Authority Identified
as Wasteful Spending.--The President may propose, at the time and in
the manner provided in subsection (b), the rescission of any budget
authority provided in an appropriation Act that he identifies as
wasteful spending. If the President proposes a rescission of budget
authority, he may also propose to reduce the appropriate discretionary
spending limits for new budget authority and outlays flowing therefrom
set forth in section 251(b) of the Balanced Budget and Emergency
Deficit Control Act of 1985 by an amount that does not exceed the
amount of the proposed rescission. Funds made available for obligation
under this procedure may not be proposed for rescission again under
this section.
``(b) Transmittal of Special Message.--
``(1) The President may transmit to Congress a special
message proposing to rescind amounts of budget authority and
include with that special message a draft bill that, if
enacted, would only rescind that budget authority unless the
President also proposes a reduction in the appropriate
discretionary spending limits set forth in section 251(b) of
the Balanced Budget and Emergency Deficit Control Act of 1985.
That bill shall clearly identify the amount of budget authority
that is proposed to be rescinded for each program, project, or
activity to which that budget authority relates.
``(2) In the case of an appropriation Act that includes
accounts within the jurisdiction of more than one subcommittee
of the Committee on Appropriations, the President in proposing
to rescind budget authority under this section shall send a
separate special message and accompanying draft bill for
accounts within the jurisdiction of each subcommittee.
``(3) Each special message shall specify, with respect to
the budget authority proposed to be rescinded, the following:
``(A) The amount of budget authority which he
proposes to be rescinded.
``(B) Any account, department, or establishment of
the Government to which such budget authority is
available for obligation, and the specific project or
governmental functions involved.
``(C) The reasons why the budget authority should
be rescinded, including why he considers it to be
wasteful spending.
``(D) To the maximum extent practicable, the
estimated fiscal, economic, and budgetary effect
(including the effect on outlays and receipts in each
fiscal year) of the proposed rescission.
``(E) All facts, circumstances, and considerations
relating to or bearing upon the proposed rescission and
the decision to effect the proposed rescission, and to
the maximum extent practicable, the estimated effect of
the proposed rescission upon the objects, purposes, and
programs for which the budget authority is provided.
``(F) A reduction in the appropriate discretionary
spending limits set forth in section 251(b) of the
Balanced Budget and Emergency Deficit Control Act of
1985, if proposed by the President.
``(c) Procedures for Expedited Consideration.--
``(1)(A) Before the close of the second legislative day of
the House of Representatives after the date of receipt of a
special message transmitted to Congress under subsection (b),
the majority leader or minority leader of the House of
Representatives shall introduce (by request) the draft bill
accompanying that special message. If the bill is not
introduced as provided in the preceding sentence, then, on the
third legislative day of the House of Representatives after the
date of receipt of that special message, any Member of that
House may introduce the bill.
``(B) The bill shall be referred to the Committee on
Appropriations. The committee shall report the bill without
substantive revision and with or without recommendation. The
bill shall be reported not later than the seventh legislative
day of that House after the date of receipt of that special message. If
that committee fails to report the bill within that period, that
committee shall be automatically discharged from consideration of the
bill, and the bill shall be placed on the appropriate calendar.
``(C) A vote on final passage of the bill shall be taken in
the House of Representatives on or before the close of the 10th
legislative day of that House after the date of the
introduction of the bill in that House. If the bill is passed,
the Clerk of the House of Representatives shall cause the bill
to be engrossed, certified, and transmitted to the Senate
within one calendar day of the day on which the bill is passed.
``(2)(A) A motion in the House of Representatives to
proceed to the consideration of a bill under this section shall
be highly privileged and not debatable. An amendment to the
motion shall not be in order, nor shall it be in order to move
to reconsider the vote by which the motion is agreed to or
disagreed to.
``(B) Debate in the House of Representatives on a bill
under this section shall not exceed 4 hours, which shall be
divided equally between those favoring and those opposing the
bill. A motion to further limit debate shall not be debatable.
It shall not be in order to move to recommit a bill under this
section or to move to reconsider the vote by which the bill is
agreed to or disagreed to.
``(C) Appeals from decisions of the Chair relating to the
application of the Rules of the House of Representatives to the
procedure relating to a bill under this section shall be
decided without debate.
``(D) Except to the extent specifically provided in the
preceding provisions of this subsection, consideration of a
bill under this section shall be governed by the Rules of the
House of Representatives. It shall not be in order in the House
of Representatives to consider any rescission bill introduced
pursuant to the provisions of this section under a suspension
of the rules or under a special rule.
``(3) A bill transmitted to the Senate pursuant to
paragraph (1)(D) shall be referred to its Committee on
Appropriations. That committee shall report the bill without
substantive revision and with or without recommendation. The
bill shall be reported not later than the seventh legislative
day of the Senate after it receives the bill. A committee
failing to report the bill within such period shall be
automatically discharged from consideration of the bill, and
the bill shall be placed upon the appropriate calendar.
``(4)(A) A motion in the Senate to proceed to the
consideration of a bill under this section shall be privileged
and not debatable. An amendment to the motion shall not be in
order, nor shall it be in order to move to reconsider the vote
by which the motion is agreed to or disagreed to.
``(B) Debate in the Senate on a bill under this section,
and all debatable motions and appeals in connection therewith
(including debate pursuant to subparagraph (C)), shall not
exceed 10 hours. The time shall be equally divided between, and
controlled by, the majority leader and the minority leader or
their designees.
``(C) Debate in the Senate or any debatable motion or
appeal in connection with a bill under this section shall be
limited to not more than 1 hour, to be equally divided between,
and controlled by, the mover and the manager of the bill,
except that in the event the manager of the bill is in favor of
any such motion or appeal, the time in opposition thereto,
shall be controlled by the minority leader or his designee.
Such leaders, or either of them, may, from time under their
control of the passage of a bill, allot additional time to any
Senator during the consideration of any debatable motion or
appeal.
``(D) A motion in the Senate to further limit debate on a
bill under this section is not debatable. A motion to recommit
a bill under this section is not in order.
``(d) Amendment and Divisions Prohibited.--No amendment to a bill
considered under this section shall be in order in either the House of
Representatives or the Senate. It shall not be in order to demand a
division of the question in the House of Representatives (or in a
Committee of the Whole) or in the Senate. No motion to suspend the
application of this subsection shall be in order in either House, nor
shall it be in order in either House to suspend the application of this
subsection by unanimous consent.
``(e) Requirement To Make Available for Obligation.--Any amount of
budget authority proposed to be rescinded in a special message
transmitted to Congress under subsection (b) shall be made available
for obligation on the day after the date on which either House rejects
the bill transmitted with that special message.
``(f) Definitions.--For purposes of this section:
``(1) The term `appropriation Act' means any general or
special appropriation Act, and any Act or joint resolution
making supplemental, deficiency, or continuing appropriations.
``(2) The term `legislative day' means, with respect to
either House of Congress, any day of session.
``(3) The term `rescind' means, with respect to an
appropriation Act, to reduce the amount of budget authority
appropriated in that Act, and reducing budget authority shall
include reducing obligation limitations set forth in that
Act.''.
(b) Exercise of Rulemaking Powers.--Section 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended--
(1) in subsection (a), by striking ``and 1017'' and
inserting ``1012, and 1017''; and
(2) in subsection (d), by striking ``section 1017'' and
inserting ``sections 1012 and 1017''.
(c) Conforming Amendments.--
(1) Section 1011 of the Congressional Budget Act of 1974 (2
U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5)
and by redesignating paragraph (4) as paragraph (3).
(2) Section 1014 of such Act (2 U.S.C. 685) is amended--
(A) in subsection (b)(1), by striking ``or the
reservation''; and
(B) in subsection (e)(1), by striking ``or a
reservation'' and by striking ``or each such
reservation''.
(3) Section 1015(a) of such Act (2 U.S.C. 686) is amended
by striking ``is to establish a reserve or'', by striking ``the
establishment of such a reserve or'', and by striking ``reserve
or'' each other place it appears.
(4) Section 1017 of such Act (2 U.S.C. 687) is amended--
(A) in subsection (a), by striking ``rescission
bill introduced with respect to a special message or'';
(B) in subsection (b)(1), by striking ``rescission
bill or'', by striking ``bill or'' the second place it
appears, by striking ``rescission bill with respect to
the same special message or'', and by striking ``, and
the case may be,'';
(C) in subsection (b)(2), by striking ``bill or''
each place it appears;
(D) in subsection (c), by striking ``rescission''
each place it appears and by striking ``bill or'' each
place it appears;
(E) in subsection (d)(1), by striking ``rescission
bill or'' and by striking ``, and all amendments
thereto (in the case of a rescission bill)'';
(F) in subsection (d)(2)--
(i) by striking the first sentence;
(ii) by amending the second sentence to
read as follows: ``Debate on any debatable
motion or appeal in connection with an
impoundment resolution shall be limited to 1
hour, to be equally divided between, and
controlled by, the mover and the manager of the
resolution, except that in the event that the
manager of the resolution is in favor of any
such motion or appeal, the time in opposition
thereto shall be controlled by the minority
leader or his designee.'';
(iii) by striking the third sentence; and
(iv) in the fourth sentence, by striking
``rescission bill or'' and by striking
``amendment, debatable motion,'' and by
inserting `debatable motion';
(G) in paragraph (d)(3), by striking the second and
third sentences; and
(H) by striking paragraphs (4), (5), (6), and (7)
of paragraph (d).
(d) Clerical Amendments.--The table of sections for subpart B of
title X of the Congressional Budget and Impoundment Control Act of 1974
is amended by redesignating the item relating to sections 1014 through
1018 as items 1015 through 1019, respectively, and by inserting after
the item relating to section 1012 the following new item:
``Sec. 1013. Enhanced consideration of certain proposed rescissions.''.
Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse
SEC. 321. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established the Commission to
Eliminate Waste, Fraud, and Abuse (hereafter in this subtitle referred
to as the ``Commission'').
(b) Membership.--
(1) In general.--The Commission shall consist of 12
members, all of whom shall be appointed by the President not
later than 90 days after the date of enactment of this Act.
(2) Chairperson and vice chairperson.--The President shall
designate a chairperson and vice chairperson from among the
members of the Commission.
(c) Period of Appointment; Vacancies.--Members shall be appointed
for the life of the Commission. Any vacancy in the Commission shall not
affect its powers, but shall be filled in the same manner as the
original appointment.
(d) Meetings.--
(1) Initial meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed, the
Commission shall hold its first meeting.
(2) Subsequent meetings.--The Commission shall meet at the
call of the chairperson.
(e) Quorum.--A majority of the members of the Commission shall
constitute a quorum, but a lesser number of members may hold hearings.
SEC. 322. DUTIES OF THE COMMISSION.
(a) Definitions.--In this section, the following definitions shall
apply:
(1) Agency.--The term ``agency'' has the meaning given the
term ``Executive agency'' under section 105 of title 5, United
States Code.
(2) Program.--The term ``program'' means any activity or
function of an agency.
(b) In General.--The Commission shall--
(1) evaluate all agencies and programs within those
agencies, using the criteria under subsection (c); and
(2) submit to Congress--
(A) a plan with recommendations of the agencies and
programs that should be realigned or eliminated; and
(B) proposed legislation to implement the plan
described under subparagraph (A).
(c) Criteria.--
(1) Duplicative.--If 2 or more agencies or programs are
performing the same essential function and the function can be
consolidated or streamlined into a single agency or program,
the Commission shall recommend that the agency or program be
realigned.
(2) Wasteful or inefficient.--The Commission shall
recommend the realignment or elimination of any agency or
program that has wasted Federal funds by--
(A) egregious spending;
(B) mismanagement of resources and personnel; or
(C) use of such funds for personal benefit or the
benefit of a special interest group.
(3) Outdated, irrelevant, or failed.--The Commission shall
recommend the elimination of any agency or program that--
(A) has completed its intended purpose;
(B) has become irrelevant; or
(C) has failed to meet its objectives.
(d) Systematic Assessment of Programs.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the President shall--
(A) establish a systematic method for assessing the
effectiveness and accountability of agency programs;
and
(B) submit, to the Commission, assessments of not
less than \1/2\ of all programs covered under
subsection (b)(1) that use the method established under
subparagraph (A).
(2) Method objectives.--The method established under
paragraph (1) shall--
(A) recognize different types of federal programs;
(B) assess programs based primarily on the
achievement of performance goals (as defined under
section 1115(f)(4) of title 31, United States Code);
and
(C) assess programs based in part on the adequacy
of the program's performance measures, financial
management, and other factors determined by the
President.
(3) Development.--The method established under paragraph
(1) shall not be implemented until it has been reviewed and
accepted by the Commission.
(4) Consideration of assessments.--The Commission shall
consider assessments submitted under this subsection when
evaluating programs under subsection (b)(1).
(e) Common Performance Measures.--Not later than 1 year after the
date of enactment of this Act, the President shall identify common
performance measures for programs covered in subsection (b)(1) that
have similar functions and, to the extent feasible, provide the
Commission with data on such performance measures.
(f) Report.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Commission shall submit to the
President and Congress a report that includes--
(A) the plan described under subsection (b)(2)(A),
with supporting documentation for all recommendations;
and
(B) the proposed legislation described under
subsection (b)(2)(B).
(2) Relocation of federal employees.--The proposed
legislation under paragraph (1)(B) shall provide that if the
position of an employee of an agency is eliminated as a result
of the implementation of the plan under paragraph (1)(A), the
affected agency shall make reasonable efforts to relocate such
employee to another position within the agency or within
another Federal agency.
SEC. 323. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission or, at its direction, any
subcommittee or member of the Commission, may, for the purpose of
carrying out this subtitle--
(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and
administer such oaths as any member of the Commission considers
advisable;
(2) require, by subpoena or otherwise, the attendance and
testimony of such witnesses as any member of the Commission
considers advisable; and
(3) require, by subpoena or otherwise, the production of
such books, records, correspondence, memoranda, papers,
documents, tapes, and other evidentiary materials relating to
any matter under investigation by the Commission.
(b) Subpoenas.--
(1) Issuance.--Subpoenas issued under subsection (a) shall
bear the signature of the chairperson of the Commission and
shall be served by any person or class of persons designated by
the chairperson for that purpose.
(2) Enforcement.--In the case of contumacy or failure to
obey a subpoena issued under subsection (a), the United States
district court for the judicial district in which the
subpoenaed person resides, is served, or may be found, may
issue an order requiring such person to appear at any
designated place to testify or to produce documentary or other
evidence. Any failure to obey the order of the court may be
punished by the court as a contempt of that court.
(c) Information From Federal Agencies.--The Commission may secure
directly from any Federal department or agency such information as the
Commission considers necessary to carry out this Act. Upon request of
the chairperson of the Commission, the head of such department or
agency shall furnish such information to the Commission.
(d) Postal Services.--The Commission may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the Government.
(e) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property.
SEC. 324. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--
(1) Non-federal members.--Except as provided under
subsection (b), each member of the Commission who is not an
officer or employee of the Government shall not be compensated.
(2) Federal officers or employees.--All members of the
Commission who are officers or employees of the United States
shall serve without compensation in addition to that received
for their services as officers or employees of the United
States.
(b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of subsistence, at
rates authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their homes
or regular places of business in the performance of services for the
Commission.
(c) Staff.--
(1) In general.--The chairperson of the Commission may,
without regard to the civil service laws and regulations,
appoint and terminate an executive director and such other
additional personnel as may be necessary to enable the
Commission to perform its duties. The employment of an
executive director shall be subject to confirmation by the
Commission.
(2) Compensation.--Upon the approval of the chairperson,
the executive director may fix the compensation of the
executive director and other personnel without regard to
chapter 51 and subchapter III of chapter 53 of title 5, United
States Code, relating to classification of positions and
General Schedule pay rates, except that the rate of pay for the
executive director and other personnel may not exceed the
maximum rate payable for a position at GS-15 of the General
Schedule under section 5332 of such title.
(3) Personnel as federal employees.--
(A) In general.--The executive director and any
personnel of the Commission who are employees shall be
employees under section 2105 of title 5, United States
Code, for purposes of chapters 63, 81, 83, 84, 85, 87,
89, and 90 of that title.
(B) Members of commission.--Subparagraph (A) shall
not be construed to apply to members of the Commission.
(d) Detail of Government Employees.--Any Government employee may be
detailed to the Commission without reimbursement, and such detail shall
be without interruption or loss of civil service status or privilege.
(e) Procurement of Temporary and Intermittent Services.--The
chairperson of the Commission may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, at rates
for individuals which do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive Schedule
under section 5316 of such title.
SEC. 325. TERMINATION OF THE COMMISSION.
The Commission shall terminate 90 days after the date on which the
Commission submits the report under section 232(f).
SEC. 326. CONGRESSIONAL CONSIDERATION OF REFORM PROPOSALS.
(a) Definitions.--In this section:
(1) Implementation bill.--The term ``implementation bill''
means only a bill which is introduced as provided under
subsection (b), and contains the proposed legislation included
in the report submitted to Congress under section 232, without
modification.
(2) Calendar day.--The term ``calendar day'' means a
calendar day other than 1 on which either House is not in
session because of an adjournment of more than 3 days to a date
certain.
(b) Introduction; Referral; and Report or Discharge.--
(1) Introduction.--On the first calendar day on which both
Houses are in session, on or immediately following the date on
which the report is submitted to Congress under section 232, a
single implementation bill shall be introduced (by request)--
(A) in the Senate by the Majority Leader of the
Senate, for himself and the Minority Leader of the
Senate, or by Members of the Senate designated by the
Majority Leader and Minority Leader of the Senate; and
(B) in the House of Representatives by the Speaker
of the House of Representatives, for himself and the
Minority Leader of the House of Representatives, or by
Members of the House of Representatives designated by
the Speaker and Minority Leader of the House of
Representatives.
(2) Referral.--The implementation bills introduced under
paragraph (1) shall be referred to any appropriate committee of
jurisdiction in the Senate and any appropriate committee of
jurisdiction in the House of Representatives. A committee to
which an implementation bill is referred under this paragraph
may report such bill to the respective House without amendment.
(3) Report or discharge.--If a committee to which an
implementation bill is referred has not reported such bill by
the end of the 15th calendar day after the date of the
introduction of such bill, such committee shall be immediately
discharged from further consideration of such bill, and upon
being reported or discharged from the committee, such bill
shall be placed on the appropriate calendar.
(c) Floor Consideration.--
(1) In general.--When the committee to which an
implementation bill is referred has reported, or has been
discharged under subsection (b)(3), it is at any time
thereafter in order (even though a previous motion to the same
effect has been disagreed to) for any Member of the respective
House to move to proceed to the consideration of the
implementation bill, and all points of order against the
implementation bill (and against consideration of the
implementation bill) are waived. The motion is highly
privileged in the House of Representatives and is privileged in
the Senate and is not debatable. The motion is not subject to
amendment, or to a motion to postpone, or to a motion to
proceed to the consideration of other business. A motion to
reconsider the vote by which the motion is agreed to or
disagreed to shall not be in order. If a motion to proceed to
the consideration of the implementation bill is agreed to, the
implementation bill shall remain the unfinished business of the
respective House until disposed of.
(2) Amendments.--An implementation bill may not be amended
in the Senate or the House of Representatives.
(3) Debate.--Debate on the implementation bill, and on all
debatable motions and appeals in connection therewith, shall be
limited to not more than 10 hours, which shall be divided
equally between those favoring and those opposing the
resolution. A motion further to limit debate is in order and
not debatable. An amendment to, or a motion to postpone, or a
motion to proceed to the consideration of other business, or a
motion to recommit the implementation bill is not in order. A
motion to reconsider the vote by which the implementation bill
is agreed to or disagreed to is not in order.
(4) Vote on final passage.--Immediately following the
conclusion of the debate on an implementation bill, and a
single quorum call at the conclusion of the debate if requested
in accordance with the rules of the appropriate House, the vote
on final passage of the implementation bill shall occur.
(5) Rulings of the chair on procedure.--Appeals from the
decisions of the Chair relating to the application of the rules
of the Senate or the House of Representatives, as the case may
be, to the procedure relating to an implementation bill shall
be decided without debate.
(d) Coordination With Action by Other House.--If, before the
passage by 1 House of an implementation bill of that House, that House
receives from the other House an implementation bill, then the
following procedures shall apply:
(1) Nonreferral.--The implementation bill of the other
House shall not be referred to a committee.
(2) Vote on bill of other house.--With respect to an
implementation bill of the House receiving the implementation
bill--
(A) the procedure in that House shall be the same
as if no implementation bill had been received from the
other House; but
(B) the vote on final passage shall be on the
implementation bill of the other House.
(e) Rules of Senate and House of Representatives.--This section is
enacted by Congress--
(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such it is
deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in
that House in the case of an implementation bill described in
subsection (a), and it supersedes other rules only to the
extent that it is inconsistent with such rules; and
(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.
SEC. 327. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary for carrying out this subtitle for each of the fiscal years
2006 through 2008.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
SEC. 401. CIVIL SERVICE RETIREMENT SYSTEM.
(a) Civil Service Retirement and Disability Fund.--Chapter 83 of
title 5, United States Code, is amended--
(1) in section 8331--
(A) in paragraph (17)--
(i) by striking ``normal cost'' and
inserting ``normal cost percentage''; and
(ii) by inserting ``and standards (using
dynamic assumptions)'' after ``practice'';
(B) by amending paragraph (18) to read as follows:
``(18) `Fund balance' means the current net assets of the
Fund available for payment of benefits, as determined by the
Office in accordance with appropriate accounting standards, but
does not include any amount attributable to--
``(A) the Federal Employees' Retirement System; or
``(B) contributions made under the Federal
Employees' Retirement Contribution Temporary Adjustment
Act of 1983 by or on behalf of any individual who
became subject to the Federal Employees' Retirement
System;''
(C) by amending paragraph (19) to read as follows:
``(19) `accrued liability' means the estimated excess of
the present value of all benefits payable from the Fund to
employees and Members, and former employees and Members,
subject to this subchapter, and their survivors, over the
present value of deductions to be withheld from the future
basic pay of employees and Members currently subject to this
subchapter and of future agency contributions to be made in
their behalf;''
(D) in paragraph (27) by striking ``and'' at the
end;
(E) in paragraph (28) by striking the period at the
end and inserting a semicolon; and
(F) by adding at the end the following paragraphs:
``(29) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities of
a retirement system and in anticipating the effects of long-
term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation; and
``(30) `unfunded liability' means the estimated excess of--
``(A) the actuarial present value of all future
benefits payable from the Fund under this subchapter
based on the service of current or former employees or
Members, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the future basic
pay of employees and Members currently subject to this chapter pursuant
to section 8334;
``(ii) the actuarial present value of the
future contributions to be made pursuant to
section 8334 with respect to employees and
Members currently subject to this subchapter;
``(iii) the Fund balance, as defined in
paragraph (18), as of the date the unfunded
liability is determined; and
``(iv) any other appropriate amount, as
determined by the Office of Personnel
Management in accordance with generally
accepted actuarial practices and principles.'';
(2) in section 8334--
(A) in subsection (a)(1)--
(i) by striking the last two sentences;
(ii) by redesignating that subsection, as
so amended, as (a)(1)(A); and
(iii) by adding at the end the following
new subparagraphs:
``(B) Except as provided in subparagraph (E), each employing agency
having any employees or Members subject to subparagraph (A) shall
contribute from amounts available for salaries and expenses an amount
equal to the sum of--
``(i) the product of--
``(I) the normal cost percentage, as determined for
employees (other than employees covered by clause
(ii)), multiplied by
``(II) the aggregate amount of basic pay payable by
the agency, for the period involved, to employees
(under subclause (I)) who are within such agency; and
``(ii) the product of--
``(I) the normal cost percentage, as determined for
Members, Congressional employees, law enforcement
officers, firefighters, air traffic controllers,
bankruptcy judges, Court of Federal Claims judges,
United States magistrates, judges of the United States
Court of Appeals for the Armed Forces, members of the
Capitol Police, nuclear materials couriers, and members
of the Supreme Court Police, multiplied by
``(II) the aggregate amount of basic pay payable by
the agency for the period involved, to employees and
Members (under subclause (I)) who are within such
agency.
``(C) In determining the normal cost percentage to be applied under
subparagraph (B), amounts provided for under subparagraph (A) shall be
taken into account.
``(D) Contributions under this paragraph shall be paid--
``(i) in the case of law enforcement officers,
firefighters, air traffic controllers, bankruptcy judges, Court
of Federal Claims judges, United States magistrates, judges of
the United States Court of Appeals for the Armed Forces,
members of the Supreme Court Police, nuclear materials couriers
and other employees, from the appropriations or fund used to
pay such law enforcement officers, firefighters, air traffic
controllers, bankruptcy judges, Court of Federal Claims judges,
United States magistrates, judges of the United States Court of
Appeals for the Armed Forces, members of the Supreme Court
Police, nuclear materials couriers and other employees,
respectively;
``(ii) in the case of elected officials, from an
appropriation or fund available for payment of other salaries
of the same office or establishment; and
``(iii) in the case of employees of the legislative branch
paid by the Clerk of the House of Representatives, from the
contingent fund of the House.
``(E) In the case of the United States Postal Service, the
Metropolitan Washington Airports Authority, and the government of the
District of Columbia, an amount equal to that withheld under
subparagraph (A) shall be contributed from the appropriation or fund
used to pay the employee.''; and
(B) in subsection (k)--
(i) in paragraph (1)--
(I) in subparagraph (A) by striking
``the first sentence of subsection
(a)(1) of this section'' and inserting
``subsection (a)(1)(A)''; and
(II) by amending subparagraph (B)
to read as follows:
``(B) the amount of the contribution under subsection
(a)(1)(B) shall be the amount which would have been contributed
under such subsection if this subsection had not been
enacted.''; and
(ii) in paragraph (2)(C)(iii) by striking
``the first sentence of subsection (a)(1)'' and
inserting ``subsection (a)(1)(A)''; and
(3) in section 8348--
(A) by repealing subsection (f);
(B) by amending subsection (g) to read as follows:
``(g)(1)(A) Not later than June 30, 2005, the Office of the Actuary
shall determine the unfunded liability of the Fund, as of September 30,
2004, attributable to benefits payable under this chapter and make
recommendations regarding its liquidation. After considering such
recommendations, the Office shall establish an amortization schedule,
including a series of annual installments commencing October 1, 2005,
which provides for the liquidation of such liability by October 1,
2044.
``(B) The Office shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2004, through the fiscal year ending September 30,
2039, and shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(C) The Office shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2039, and shall establish a new amortization
schedule, including a series of annual installments commencing on
October 1 of the second subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(D) Amortization schedules established under this paragraph shall
be set in accordance with generally accepted actuarial practices and
principles, with interest computed at the rate used in the most recent
valuation of the Civil Service Retirement System.
``(2) At the beginning of each fiscal year, beginning on October 1,
2005, the Office shall notify the Secretary of the Treasury of the
amount of the first installment under the most recent amortization
schedule established under paragraph (1). The Secretary shall credit
that amount to the Fund, as a Government contribution, out of any money
in the Treasury of the United States not otherwise appropriated.
``(3) For the purpose of carrying out paragraph (1) with respect to
any fiscal year, the Office may--
``(A) require the Board of Actuaries of the Civil Service
Retirement System to make actuarial determinations and
valuations, make recommendations, and maintain records in
accordance with section 8347(f); and
``(B) use the latest actuarial determinations and
valuations made by such Board of Actuaries.'';
(C) in subsections (h), (i), and (m) by striking
``unfunded'' and inserting ``accrued'' each place it
appears; and
(D) by adding at the end the following new
subsection:
``(n) Under regulations prescribed by the Office, the head of an
agency may request reconsideration of any amount determined to be
payable with respect to such agency under section 8334(a)(1)(B)-(D).
Any such request shall be referred to the Board of Actuaries of the
Civil Service Retirement System. The Board of Actuaries shall review
the computations of the Office and may make any adjustment with respect
to any such amount which the Board determines appropriate. A
determination by the Board of Actuaries under this subsection shall be
final.''.
(b) Government Contributions.--Section 8423 of title 5, United
States Code, is amended--
(1) in subsection (a)(2) by striking ``section 8422'' and
inserting ``section 8422(a)''; and
(2) in subsection (b)(2) by striking ``equal annual
installments'' and inserting ``annual installments set in
accordance with generally accepted actuarial practices and
principles''.
SEC. 402. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM.
(a) Section 101 of the Central Intelligence Agency Retirement Act
(50 U.S.C. 2001) is amended--
(1) in paragraph (5), to read as follows:
``(5) Unfunded liability.--The term `unfunded liability'
means the estimated excess of--
``(A) the actuarial present value of all future
benefits payable from the Fund under title II of this
Act based on the service of current or former
participants, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the future basic
pay of participants currently subject to title
II of this Act pursuant to section 211;
``(ii) the actuarial present value of the
future contributions to be made pursuant to
section 211 with respect to participants
currently subject to title II of this Act;
``(iii) the Fund balance, as defined in
paragraph (4), as of the date the unfunded
liability is determined; and
``(iv) any other appropriate amount, as
determined by the Director in accordance with
generally accepted actuarial practices and
principles.'';
(2) in paragraph (6)--
(A) by striking ``-`normal cost'-'' and inserting
``-`normal cost percentage'-''; and
(B) by inserting ``and standards (using dynamic
assumptions)'' after ``practice''; and
(3) by adding at the end the following paragraph:
``(10) Dynamic assumptions.--The term `dynamic assumptions'
means economic assumptions that are used in determining
actuarial costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(b) Section 202 of such Act (50 U.S.C. 2012) is amended by adding
at the end the following: ``The Fund is appropriated for the payment of
benefits as provided by this title.''.
(c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is amended
to read as follows:
``(2) Agency contributions.--The Agency shall contribute to
the Fund the amount computed in a manner similar to that used
under section 8334(a) of title 5, United States Code, pursuant
to determinations of the normal cost percentage of the Central
Intelligence Agency Retirement and Disability System by the
Director. Contributions under this paragraph shall be paid from
amounts available for salaries and expenses.''; and
(d) Section 261 of such Act (50 U.S.C. 2091) is amended--
(1) by striking subsections (c), (d), and (e); and
(2) by inserting after subsection (b) the following new
subsections:
``(c)(1) Not later than June 30, 2005, the Director shall cause to
be made actuarial valuations of the Fund that determine the unfunded
liability of the Fund, as of September 30, 2004, attributable to
benefits payable under this title and make recommendations regarding
its liquidation. After considering such recommendations, the Director
shall establish an amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for the
liquidation of such liability by October 1, 2044.
``(2) The Director shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2004, through the fiscal year ending September 30,
2039, and shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Director shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2039, and shall establish a new amortization
schedule, including a series of annual installments commencing on
October 1 of the second subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(4) Amortization schedules established under this subsection
shall be set in accordance with generally accepted actuarial practices
and principles, with interest computed at the rate used in the most
recent valuation of the Civil Service Retirement and Disability System.
``(d) At the beginning of each fiscal year, beginning on October 1,
2005, the Director shall notify the Secretary of the Treasury of the
amount of the first installment under the most recent amortization
schedule established under subsection (c). The Secretary shall credit
that amount to the Fund, as a Government contribution, out of any money
in the Treasury of the United States not otherwise appropriated. For
the purposes of Section 504 of the National Security Act of 1947, this
amount shall be considered authorized.''.
(e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is amended by
adding at the end the following new section:
``SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EMPLOYEES DESIGNATED
UNDER SECTION 302.
``(a) In addition to other government contributions required by
law, the Agency shall contribute to the Civil Service Retirement and
Disability fund (hereinafter in this section referred to as the `Fund')
amounts calculated in accordance with section 8423 of title 5, United
States Code, based on the projected number of employees to be
designated pursuant to section 302 of this Act. In addition, the
Agency, in a manner similar to that established for employee
contributions to the Fund by section 8422 of title 5, United States
Code, will contribute an amount equal to the difference between that
which would be contributed by the number of employees projected to be
designated under section 302 and the amounts that are actually being
deducted and contributed from the basic pay of an equal number of
employees pursuant to section 8422. The amounts of the Agency's
contributions under this subsection shall be determined by the Director
of the Office of Personnel Management, in consultation with the
Director, and shall be paid by the Agency from funds available for
salaries and expenses. Agency employees designated pursuant to section
302 of this Act shall, commencing with such designation, have deducted
from their basic pay the full amount required by section 8422 of title
5, United States Code, and such deductions shall be contributed to the
Fund.
``(b)(1) The Director of the Office of Personnel Management, in
consultation with the Director, shall determine the total amount of
unpaid contributions (government and employee contributions) and
interest attributable to the number of individuals employed with the
Agency on September 30, 2005, who are projected to be designated under
section 302 of this Act, but are not yet designated under that section
as of that date. The amount shall be referred to as the section 302
unfunded liability.
``(2) Not later than June 30, 2006, the Director of the Office of
Personnel Management, in consultation with the Director, shall
establish an amortization schedule, setting forth a series of annual
installments commencing September 30, 2006, which provides for the
liquidation of the section 302 unfunded liability by September 30,
2013.
``(3) At the end of each fiscal year, beginning on September 30,
2006, the Director shall notify the Secretary of the Treasury of the
amount of the annual installment under the amortization schedule
established under paragraph (2) of this subsection. Before closing the
accounts for that fiscal year, the Secretary shall credit that amount
to the Fund, out of any money in the Treasury of the United States not
otherwise appropriated.
``(c) Amounts paid by the Agency pursuant to this section are
deemed to be specifically authorized by the Congress for the purposes
of section 504 of the National Security Act of 1947.''.
(2) The table of contents of such Act is amended by inserting after
the item relating to section 307 the following new item:
``Sec. 308. Full funding of retiree costs for employees designated
under section 302.''.
SEC. 403. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.
(a) Chapter 8 of Title I of the Foreign Service Act of 1980, Public
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is
further amended in section 804 (22 U.S.C. 4044)--
(1) by amending paragraph (5) to read as follows:
``(5) `normal cost percentage' means the entry-age normal
cost computed in accordance with generally accepted actuarial
practice and standards (using dynamic assumptions) and
expressed as a level percentage of aggregate basic pay;'';
(2) by amending paragraph (14) to read as follows:
``(14) `unfunded liability' means the estimated excess of--
``(A) the actuarial present value of all future
benefits payable from the Fund under this part based on
the service of current or former participants, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the future basic
pay of participants currently subject to this
part pursuant to section 805;
``(ii) the actuarial present value of the
future contributions to be made pursuant to
section 805 with respect to participants
currently subject to this part;
``(iii) the Fund balance, as defined in
paragraph (7), as of the date the unfunded
liability is determined, excluding any amount
attributable to the Foreign Service Pension
System, or contributions made under the Federal
Employees' Retirement Contribution Temporary
Adjustment Act of 1983 by or on behalf of any
individual who became subject to the Foreign
Service Pension System; and
``(iv) any other appropriate amount, as
determined by the Secretary of the Treasury in
accordance with generally accepted actuarial
practices and principles.''; and
(3)(A) by striking the period at the end of paragraph (15)
and inserting ``; and''; and
(B) by adding at the end the following new paragraph:
``(16) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities of
a retirement system and in anticipating the effects of long-
term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(b) in section 852 (22 U.S.C. 4071a)--
(1) in paragraph (4)--
(A) by striking ``normal cost'' and inserting
``normal cost percentage''; and
(B) by striking ``by the Secretary of State'';
(2) in paragraph (7)--
(A) by striking ``supplemental'' and inserting
``unfunded'';
(B) in subparagraph (B)(i) by striking ``(I)'' and
``and (II) contributions for past civilian and military
service''; and
(C) in subparagraph (B)(ii) by inserting before the
semicolon ``with respect to participants currently
subject to this part''; and
(3)(A) at the end of paragraph (8) by striking ``and'';
(B) at the end of paragraph (9) by striking the period and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(10) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities of
a retirement system and in anticipating the effects of long-
term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))--
(1) by striking the second sentence;
(2) by redesignating that subsection, as so amended, as
(a)(1)(A);
(3) by redesignating the last sentence of that subsection,
as so amended as (a)(1)(C);
(4) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Each employing agency having participants
shall contribute to the Fund the amount computed in a
manner similar to that used under section 8334(a) of
title 5, United States Code, pursuant to determinations
of the normal cost percentage of the Foreign Service
Retirement and Disability System. Contributions under
this subparagraph shall be paid from the appropriations
or fund used for payment of the salary of the
participant.'';
(5) in subsection (a)(2)(A) by striking ``An equal amount
shall be contributed by the Department'' and inserting in its
place ``Each employing agency having participants shall
contribute to the Fund the amount computed in a manner similar
to that used under section 8334(a) of title 5, United States
Code, pursuant to determinations of the normal cost percentage
of the Foreign Service Retirement and Disability System''; and
(6) in subsection (a)(2)(B) by striking ``An equal amount
shall be contributed by the Department'' and inserting in its
place ``Each employing agency having participants shall
contribute to the Fund from amounts available for salaries and
expenses the amount computed in a manner similar to that used
under section 8334(a) of title 5, United States Code, pursuant
to determinations of the normal cost percentage of the Foreign
Service Retirement and Disability System'';
(d) by repealing sections 821 and 822 (22 U.S.C. 4061 and 4062) and
by adding the following new section:
``Sec. 821. Unfunded Liability.--(a)(1) Not later than June 30,
2005, the Secretary of State shall cause to be made actuarial
valuations of the Fund that determine the unfunded liability of the
Fund, as of September 30, 2004, attributable to benefits payable under
this subchapter and make recommendations regarding its liquidation.
After considering such recommendations, the Secretary of State shall
establish an amortization schedule, including a series of annual
installments commencing October 1, 2004, which provides for the
liquidation of such liability by October 1, 2044.
``(2) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for each
fiscal year beginning after September 30, 2004, through the fiscal year
ending September 30, 2039, and shall establish a new amortization
schedule, including a series of annual installments commencing on
October 1 of the second subsequent fiscal year, which provides for the
liquidation of such liability by October 1, 2044.
``(3) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for each
fiscal year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual installments
commencing on October 1 of the second subsequent fiscal year, which
provides for the liquidation of such liability over five years.
``(4) Amortization schedules established under this subsection
shall be set in accordance with generally accepted actuarial practices
and principles, with interest computed at the rate used in the most
recent valuation of the Foreign Service Retirement and Disability
System.
``(b) At the beginning of each fiscal year, beginning on October 1,
2005, the Secretary of State shall notify the Secretary of the Treasury
of the amount of the first installment under the most recent
amortization schedule established under paragraph (1). The Secretary of
the Treasury shall credit that amount to the Fund, as a Government
contribution, out of any money in the Treasury of the United States not
otherwise appropriated.'';
(e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by striking
``equal annual installments'' and inserting ``annual installments set
in accordance with generally accepted actuarial practices and
principles'';
(f) in section 859 (22 U.S.C. 4071h) by adding ``percentage'' after
``normal cost'';
(g) in section 802 (22 U.S.C. 4042) by adding at the end the
following: ``The Fund is appropriated for the payment of benefits as
provided by this subchapter.''; and
(h) in section 818 (22 U.S.C. 4058) by striking ``System'' and
inserting ``Systems under this subchapter''.
SEC. 404. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM.
(a) In General.--Title II of the Public Health Service Act (42
U.S.C. 202 et seq.) is amended by adding at the end the following new
part:
``PART C--PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM
``establishment and purpose of fund
``Sec. 251. There is established on the books of the Treasury a
fund to be known as the Public Health Service Commissioned Corps
Retirement Fund (hereinafter in this part referred to as the `Fund'),
which shall be administered by the Secretary. The Fund shall be used
for the accumulation of funds in order to finance on an actuarially
sound basis liabilities of the Department of Health and Human Services
for benefits payable on account of retirement, disability, or death to
commissioned officers of the Public Health Service and to their
survivors pursuant to part A of this title.
``assets of the fund
``Sec. 252. There shall be deposited into the Fund the following,
which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 255.
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
404(c) of the Family Budget Protection Act of 2004.
``payment from the fund
``Sec. 253. There shall be paid from the Fund benefits payable on
account of retirement, disability, or death to commissioned officers of
the Public Health Service and to their survivors pursuant to part A of
this title.
``determination of contributions to the fund
``Sec. 254. (a)(1) Not later than June 30, 2005, the Secretary
shall determine the unfunded liability of the Fund attributable to
service performed as of September 30, 2004, which is `active service'
for the purpose of section 212. The Secretary shall establish an
amortization schedule, including a series of annual installments
commencing October 1, 2005, which provides for the liquidation of such
liability by October 1, 2044.
``(2) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2004, through the fiscal year ending September 30,
2039, and shall establish a new amortization schedule, including a
series of annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2039, and shall establish a new amortization
schedule, including a series of annual installments commencing on
October 1 of the second subsequent fiscal year, which provides for the
liquidation of such liability over 5 years.
``(b) The Secretary shall determine each fiscal year, in sufficient
time for inclusion in the budget request for the following fiscal year,
the total amount of Department of Health and Human Services
contributions to be made to the Fund during the fiscal year under
section 255(a). That amount shall be the sum of--
``(1) the product of--
``(A) the current estimate of the value of the
single level percentage of basic pay to be determined
under subsection (c)(1) at the time of the most recent
actuarial valuation under subsection (c); and
``(B) the total amount of basic pay expected to be
paid during that fiscal year to commissioned officers
of the Public Health Service on active duty (other than
active duty for training); and
``(2) the product of--
``(A) the current estimate of the value of the
single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) to be determined under subsection
(c)(2) at the time of the most recent actuarial
valuation under subsection (c); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) expected to be paid during the
fiscal year to commissioned officers of the Reserve
Corps of the Public Health Service (other than officers
on full-time duty other than for training) who are not
otherwise described in subparagraph (A).
``(c) Not less often than every four years thereafter (or by the
fiscal year end prior to the effective date of any statutory change
affecting benefits payable on account of retirement, disability, or
death to commissioned officers or their survivors), the Secretary shall
carry out an actuarial valuation of benefits payable on account of
retirement, disability, or death to commissioned officers of the Public
Health Service and to their survivors pursuant to part A of this title.
Each such actuarial valuation shall be signed by an enrolled Actuary
and shall include--
``(1) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
commissioned officers of the Public Health Service on active
duty (other than active duty for training); and
``(2) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37, United
States Code) of commissioned officers of the Reserve Corps of
the Public Health Service (other than officers on full time
duty other than for training) who are not otherwise described
in paragraph (1).
``(d) All determinations under this section shall be in accordance
with generally accepted actuarial principles and practices and, where
appropriate, shall follow the general pattern of methods and
assumptions approved by the Department of Defense Retirement Board of
Actuaries.
``(e) The Secretary shall provide for the keeping of such records
as are necessary for determining the actuarial status of the Fund.
``payments into the fund
``Sec. 255. (a) From amounts available to the Department of Health
and Human Services for salaries and expenses, the Secretary shall pay
into the Fund at the end of each month the amount that is the sum of--
``(1) the product of--
``(A) the level percentage of basic pay determined
using all the methods and assumptions approved for the
most recent (as of the first day of the current fiscal
year) actuarial valuation under sections 254(c)(1)
(except that any statutory change affecting benefits
payable on account of retirement, disability, or death
to commissioned officers or their survivors that is
effective after the date of that valuation and on or
before the first day of the current fiscal year shall
be used in such determination); and
``(B) the total amount of basic pay accrued for
that month by commissioned officers of the Public
Health Service on active duty (other than active duty
for training); and
``(2) the product of--
``(A) the level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) determined using all the methods
and assumptions approved for the most recent (as of the
first day of the current fiscal year) actuarial
valuation under section 254(c)(2) (except that any
statutory change affecting benefits payable on account
of retirement, disability, or death to commissioned
officers or their survivors that is effective after the
date of that valuation and on or before the first day
of the current fiscal year shall be used in such
determinations); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) accrued for that month by
commissioned officers of the Reserve Corps of the
Public Health Service (other than officers on full-time
duty other than for training).
``(b) At the beginning of each fiscal year, beginning on October 1,
2005, the Secretary shall certify to the Secretary of the Treasury the
amount of the first installment under the most recent amortization
schedule established under section 254(a). The Secretary of the
Treasury shall pay into the Fund from the General Fund of the Treasury
the amount so certified. Such payment shall be the contribution to the
Fund for that fiscal year.
``investments of assets of fund
``Sec. 256. The Secretary may request the Secretary of the Treasury
to invest such portion of the Fund as is not, in the judgment of the
Secretary, required to meet the current needs of the Fund. Such
investments shall be made by the Secretary of the Treasury in public
debt securities with maturities suitable to the needs of the Fund, as
determined by the Secretary, and bearing interest at rates determined
by the Secretary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the United
States of comparable maturities. The income on such investments shall
be credited to and form a part of the Fund.
``implementation year exceptions
``Sec. 257. (a) To avoid funding shortfalls in the first year
should formal actuarial determinations not be available in time for
budget preparation, the amounts used in the first year in sections
255(a)(1)(A) and 255(a)(2)(A) shall be set equal to those estimates in
sections 254(b)(1)(A) and 254(b)(2)(A) if final determinations are not
available. The original unfunded liability as defined in section 254(a)
shall include an adjustment to correct for this difference between the
formal actuarial determinations and the estimates in sections
254(b)(1)(A) and 254(b)(2)(A).''.
(b) Conforming Amendments.--
(1) Condition of detail.--Section 214 of the Public Health
Service Act (42 U.S.C. 215) is amended by adding at the end the
following new subsection:
``(e) The Secretary shall condition any detail under subsection
(a), (b), or (c) upon the agreement of the executive department, State,
subdivision, Committee of the Congress, or institution concerned to pay
to the Department of Health and Human Services, in advance or by way of
reimbursement, for the full cost of the detail including that portion
of the contributions under section 255(a) that is attributable to the
detailed personnel.''.
(2) Exemption from sequestration.--Section 255(g)(1) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 905(g)(1)) is amended--
(A) in subparagraph (A), by inserting after the
item relating to ``payment to the foreign service
retirement and disability fund'' the following item:
``Payment to the Public Health Service Commissioned
Corps Retirement Fund (75-0380-0-1-551);''; and
(B) in subparagraph (B), by inserting after the
item relating to the ``Pensions for former Presidents''
the following item: ``Public Health Service
Commissioned Corps Retirement Fund (75-8274-0-7-
602);''.
(c) Transfer of Appropriations.--There shall be transferred on
October 1, 2006, into the fund established under section 251 of the
Public Health Service Act, as added by subsection (a), any obligated or
unobligated balances of appropriations made to the Department of Health
and Human Services that are currently available for benefits payable on
account of retirement, disability, or death to commissioned officers of
the Public Health Service and to their survivors pursuant to part A of
title II of the Public Health Service Act, and amounts so transferred
shall be part of the assets of the Fund.
SEC. 405. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION COMMISSIONED
OFFICER CORPS RETIREMENT SYSTEM.
(a) In General.--The National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title II of
Public Law 107-372) is amended by inserting after section 246 (33
U.S.C. 3046) the following new section:
``Sec. 246A. (a) Establishment and Purpose of NOAA Commissioned
Officer Corps Retirement Fund.--(1) There is established on the books
of the Treasury a fund to be known as the National Oceanic and
Atmospheric Administration Commissioned Officer Corps Retirement Fund
(hereinafter in this section referred to as the `Fund'), which shall be
administered by the Secretary. The Fund shall be used for the
accumulation of funds in order to finance on an actuarially sound basis
liabilities of the Department of Commerce under military retirement and
survivor benefit programs for the commissioned officers corps.
``(2) The term `military retirement and survivor benefit program'
means--
``(A) the provisions of this title and title 10, United
States Code, creating entitlement to, or determining, the
amount of retired pay;
``(B) the programs under the jurisdiction of the Department
of Defense providing annuities for survivors and members and
former members of the Armed Forces, including chapter 73 of
title 10, section 4 of Public Law 92-425, and section 5 of
Public Law 96-202, as made applicable to the commissioned
officer corps by section 261.
``(b) Assets of the Fund.--There shall be deposited into the Fund
the following, which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under subsection (e).
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
405(c) of the Family Budget Protection Act of 2004.
``(c) Payments From the Fund.--There shall be paid from the Fund
benefits payable on account of military retirement and survivor benefit
programs to commissioned officers of the commissioned officer corps and
their survivors.
``(d) Determination of Contributions to the Fund.--(1)(A) Not later
than June 30, 2004, the Secretary shall determine the unfunded
liability of the Fund attributable to service performed as of September
30, 2004, which is `active service' for the purpose of this title. The
Secretary shall establish an amortization schedule, including a series
of annual installments commencing October 1, 2005, which provides for
the liquidation of such liability by October 1, 2044.
``(B) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2004, through the fiscal year ending September 30,
2039, and shall establish a new amortization schedule, including a
series of annual installments commencing on September 30 of the
subsequent fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(C) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2039, and shall establish a new authorization
schedule, including series of annual installments commencing on October
1 of the second subsequent fiscal year, which provides for the
liquidation of such liability over 5 years.
``(2) The Secretary shall determine each fiscal year, in sufficient
time for inclusion in the budget request for the following fiscal year,
the total amount of Department of Commerce contributions to be made to
the Fund during that fiscal year under (e). The amount shall be the
product of--
``(A) the current estimate of the value of the single level
percentage of basic pay to be determined under subsection (e)
at the time of the most recent actuarial valuation under
paragraph (3); and
``(B) the total amount of basic pay expected to be paid
during that fiscal year to commissioned officers of NOAA on
active duty.
``(3) Not less often then every four years (or by the fiscal year
end before the effective date of any statutory change affecting
benefits payable on account of retirement, disability, or death to
commissioned officers or their survivors), the Secretary shall carry
out an actuarial valuation of benefits payable on account of military
retirement and survivor benefit programs to commissioned officers of
the Administration and to their survivors. Each such actuarial
valuation shall be signed by an enrolled Actuary and shall include a
determination (using the aggregate entry-age normal cost method) of a
single level percentage of basic pay for commissioned officers on
active duty.
``(4) All determinations under this section shall be in accordance
with generally accepted actuarial principles and practices, and, where
appropriate, shall follow the general pattern of methods and
assumptions approved by the Department of Defense Retirement Board of
Actuaries.
``(5) The Secretary shall provide for the keeping of such records
as are necessary for determining the actuarial status of the Fund.
``(e) Payments Into the Fund.--(1) From amounts appropriated to the
National Oceanic Atmospheric Administration for salaries and expenses,
the Secretary shall pay into the Fund at the end of each month the
amount that is the product of--
``(A) the level percentage of basic pay determined using
all the methods and assumptions approved for the most recent
(as of the first day of the current fiscal year) actuarial
valuation under subsection (d) (except that any statutory
change affecting benefits payable on account of military
retirement and survivor benefit programs to commissioned
officers of the Administration and to their survivors that is
effective date after the date of that valuation and on or
before the first day of the current fiscal year shall be used
in such determination); and
``(B) the total amount of basic pay accrued for that month
by commissioned officers on active duty.
``(2)(A) At the beginning of each fiscal year, the Secretary shall
determine the sum of--
``(i) the amount of the payment for that year under the
amortization of the original unfunded liability of the Fund;
``(ii) the amount (including any negative amount) for that
year under the most recent amortization schedule determined by
the Secretary for the amortization of any cumulative actuarial
gain or loss to the Fund, resulting from changes in benefits;
and
``(iii) the amount (including any negative amount) for that
year under the most recent amortization schedule determined by
the Secretary for the amortization or any cumulative actuarial
gain or loss to the Fund resulting from changes in actuarial
assumptions and from experience different from the assumed
since the last valuation.
The Secretary shall promptly certify the amount of the sum to the
Secretary of the Treasury.
``(B) Upon receiving the certification pursuant to paragraph (1),
the Secretary of the Treasury shall promptly pay into the Fund from the
General Fund of the Treasury the amount so certified. Such payment
shall be the contribution to the Fund for that fiscal year.
``(f) Investment of Assets of the Fund.--The Secretary may request
the Secretary of the Treasury to invest such portion of the Fund as is
not, in the judgment of the Secretary, required to meet the current
needs of the Fund. Such investments shall be made by the Secretary of
the Treasury in public debt securities with maturities suitable to the
needs of the Fund, as determined by the Secretary, and bearing interest
at rates determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturities. The income
of such investments shall be credited to and form a part of the Fund.
``(g) Implementation Year Exceptions.--(1) To avoid funding
shortfalls in the first year should formal actuarial determinations not
be available in time for budget preparation, the amounts used in the
first year in subsection (e)(1)(A) shall be set equal to the estimate
in subsection (d)(2)(A) if final determinations are not available. The
original unfunded liability as determined in subsection (d)(1) shall
include an adjustment to correct for this difference between the formal
actuarial determinations and the estimates in subsection (d)(2)(A).''.
(b) Exemption From Sequestration.--Section 255(g)(1)(B) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
905(g)(1)(B)) is amended by striking ``National Oceanic and Atmospheric
Administration retirement (13-1450-0-1-306);'' and inserting ``National
Oceanic and Atmospheric Administration Commissioned Officer Corps
Retirement Fund;''.
(c) Transfer of Appropriations.--There shall be transferred on
October 1, 2006, into the fund established under section 246A(a) of the
National Oceanic and Atmospheric Administration Commissioned Officer
Corps Act of 2002 (title II of Public Law 107-372, as added by
subsection (a)), any obligated and unobligated balance of
appropriations made to the Department of Commerce that are available as
of the date of the enactment of this Act for benefits payable on
account of military retirement and survivor benefit programs to
commissioned officers of the NOAA Commissioned Officer Corps and to
their survivors, and amounts so transferred shall be part of the assets
of the Fund, effective October 1, 2006.
(d) Effective Date.--Subsection (c) (relating to payments from the
Fund) and (e) (relating to payments into the Fund) of section 246A of
the National Oceanic and Atmospheric Administration Commissioned
Officer Corps Act of 2002 (title II of Public Law 107-372, as added by
subsection (a)), shall take effect on October 1, 2006.
SEC. 406. COAST GUARD MILITARY RETIREMENT SYSTEM.
(a) Accrual Funding for Coast Guard Retirement.--
(1) In general.--Chapter 11 of title 14, United States
Code, is amended by adding at the end the following new
subchapter:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``Sec. 441. Establishment and purpose of Fund; definitions
``(a) Establishment of Fund; Purpose.--There is established on the
books of the Treasury a fund to be known as the Coast Guard Military
Retirement Fund (hereinafter in this subchapter referred to as the
`Fund'), which shall be administered by the Secretary. The Fund shall
be used for the accumulations of funds in order to finance on an
actuarially sound basis liabilities of the Coast Guard under military
retirement and survivor benefit programs.
``(b) Military Retirement and Survivor Benefit Programs Defined.--
In this subchapter, the term `military retirement and survivor benefit
programs' means--
``(1) the provisions of this title and title 10 creating
entitlement to, or determining the amount of, retired pay;
``(2) the programs providing annuities for survivors of
members and former members of the armed forces, including
chapter 73 of title 10, section 4 of Public Law 92-425, and
section 5 of Public Law 96-402; and
``(3) the authority provided in section 1048(h) of title
10.
``(c) Secretary Defined.--In this subchapter, the term `Secretary'
means the Secretary of Homeland Security when the Coast Guard is not
operating as a service in the Navy and the Secretary of Defense when
the Coast Guard is operating as a service in the Navy.
``Sec. 442. Assets of the Fund
``There shall be deposited into the Fund the following, which shall
constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 445 of this
title.
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
406(d) of the Family Budget Protection Act of 2004.
``Sec. 443. Payments from the Fund
``(a) In General.--There shall be paid from the Fund the following:
``(1) Retired pay payable to persons on the retired list of
the Coast Guard.
``(2) Retired pay payable under chapter 1223 of title 10 to
former members of the Coast Guard and the former United States
Lighthouse Service.
``(3) Benefits payable under programs that provide
annuities for survivors of members and former members of the
armed forces, including chapter 73 of title 10, section 4 of
Public Law 92-425, and section 5 of Public Law 96-402.
``(4) Amounts payable under section 1048(h) of title 10.
``(b) Availability of Assets of the Fund.--The assets of the Fund
are hereby made available for payments under subsection (a).
``Sec. 444. Determination of contributions to the Fund
``(a) Initial Unfunded Liability.--(1) Not later than June 30,
2005, the Secretary shall determine the unfunded liability of the Fund
attributable to service performed as of September 30, 2004, which is
`active service' for the purposes of section 212. The Secretary shall
establish an amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for the
liquidation of such liability by October 1, 2044.
``(2) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each beginning after
September 30, 2004, through the fiscal year ending September 30, 2039,
and shall establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such liability by
October 1, 2044.
``(3) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2039, and shall establish a new amortization
schedule, including a series of annual installments commencing on
October 1 of the second subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(b) Annual Contributions for Current Services.--(1) The Secretary
shall determine each fiscal year, in sufficient time for inclusion in
the budget request for the following fiscal year, the total amount of
Department of Homeland Security, or Department of Defense,
contributions to be made to the Fund during that fiscal year under
section 445(a) of this title. That amount shall be the sum of the
following:
``(A) The product of--
``(i) the current estimate of the value of the
single level percentage of basic pay to be determined
under subsection (c)(1)(A) at the time of the most
recent actuarial valuation under subsection (c); and
``(ii) the total amount of basic pay expected to be
paid during that fiscal year to members of the Coast
Guard on active duty (other than active duty for
training).
``(B) The product of--
``(i) the current estimate of the value of the
single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37)
to be determined under subsection (c)(1)(B) at the time
of the most recent actuarial valuation under subsection
(c); and
``(ii) the total amount of basic pay and
compensation (paid pursuant to section 206 of title 37)
expected to be paid during that fiscal year to members
of the Coast Guard Ready Reserve (other than members on
full-time Reserve duty other than for training) who are
not otherwise described in subparagraph (A)(ii).
``(2) The amount determined under paragraph (1) for any fiscal year
is the amount needed to be appropriated to the Department of Homeland
Security for that fiscal year for payments to be made to the Fund
during that year under section 445(a) of this title. The President
shall include not less than the full amount so determined in the budget
transmitted to Congress for that fiscal year under section 1105 of
title 31. The President may comment and make recommendations concerning
any such amount.
``(c) Periodic Actuarial Valuations.--(1) Not less often than every
four years (or before the effective date of any statutory change
affecting benefits payable on account of retirement, disability, or
death to members of the Coast Guard or their survivors), the Secretary
shall carry out an actuarial valuation of the Coast Guard military
retirement and survivor benefit programs. Each actuarial valuation of
such programs shall be signed by an enrolled actuary and shall
include--
``(A) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
members of the Coast Guard on active duty (other than active
duty for training); and
``(B) a determination (using the aggregate entry-age normal
cost method) of single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37) for
members of the Ready Reserve of the Coast Guard (other than
members on full-time Reserve duty other than for training) who
are not otherwise described in subparagraph (A).
``(2) Such single level percentages shall be used for the purposes
of subsection (b) and section 445(a) of this title.
``(d) Use of Generally Accepted Actuarial Principles and
Practices.--All determinations under this section shall be in
accordance with generally accepted actuarial principles and practices
and, where appropriate, shall follow the general pattern of methods and
assumptions approved by the Department of Defense Retirement Board of
Actuaries.
``(e) Records.--The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status of the
Fund.
``Sec. 445. Payments into the Fund
``(a) Monthly Accrual Charge for Current Services.--From amounts
appropriated to the Coast Guard for salaries and expenses, the
Secretary shall pay into the Fund at the end of each month as the
Department of Homeland Security, or Department of Defense, contribution
to the Fund for that month the amount that is the sum of the following:
``(1) The product of--
``(A) the level percentage of basic pay determined
using all the methods and assumptions approved for the
most recent (as of the first day of the current fiscal
year) actuarial valuation under section 444(c)(1)(A) of
this title (except that any statutory change in the
military retirement and survivor benefit systems that
is effective after the date of that valuation and on or
before the first day of the current fiscal year shall
be used in such determination); and
``(B) the total amount of basic pay accrued for
that month by members of the Coast Guard on active duty
(other than active duty for training).
``(2) The product of--
``(A) the level percentage of basic pay and
compensation (accrued pursuant to section 206 of title
37) determined using all the methods and assumptions
approved for the most recent (as of the first day of
the current fiscal year) actuarial valuation under
section 444(c)(1)(B) of this title (except that any
statutory change in the military retirement and
survivor benefit systems that is effective after the
date of that valuation and on or before the first day
of the current fiscal year shall be used in such
determination); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of title 37)
accrued for that month by members of the Ready Reserve
(other than members of full-time Reserve duty other
than for training) who are not otherwise described in
paragraph (1)(B).
``(b) Annual Payment for Unfunded Liabilities.--(1) At the
beginning of each fiscal year, beginning on October 1, 2005, the
Secretary shall certify to the Secretary of the Treasury the amount of
the first installment under the most recent amortization schedule
established under section 254(a). The Secretary of the Treasury shall
promptly pay into the Fund from the General Fund of the Treasury the
amount so certified. Such payment shall be the contribution to the Fund
for that fiscal year.
``Sec. 446. Investment of assets of the Fund
``The Secretary may request the Secretary of the Treasury to invest
such portion of the Fund as is not, in the judgment of the Secretary,
required to meet the current needs of the Fund. Such investments shall
be made by the Secretary of the Treasury in public debt securities with
maturities suitable to the needs of the Fund, as determined by the
Secretary, and bearing interest at rates determined by the Secretary of
the Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of comparable
maturities. The income on such investments shall be credited to and
form a part of the Fund.''.
(2) Technical amendments.--Such chapter is further
amended--
(A) by amending the center heading after the table
of sections to read as follows:
``SUBCHAPTER I--OFFICERS'';
(B) by amending the center heading after section
336 to read as follows:
``SUBCHAPTER II--ENLISTED MEMBERS'';
(C) by amending the center heading after section
373 to read as follows:
``SUBCHAPTER III--GENERAL PROVISIONS'';
and
(D) by amending the center heading after section
425 to read as follows:
``SUBCHAPTER IV--SPECIAL PROVISIONS''.
(3) Clerical amendments.--The table of sections at the
beginning of such chapter is amended--
(A) by striking ``officers'' at the beginning of
the table and inserting ``subchapter i--officers'';
(B) by striking ``enlisted members'' after the item
relating to section 336 and inserting ``subchapter ii--
enlisted members'';
(C) by striking ``general provisions'' after the
item relating to section 373 and inserting ``subchapter
iii--general provisions'';
(D) by striking ``special provisions'' after the
item relating to section 425 and inserting ``subchapter
iv--special provisions''; and
(E) by adding at the end the following:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``441. Establishment and purpose of Fund; definitions.
``442. Assets of the Fund.
``443. Payments from the Fund.
``444. Determination of contributions to the Fund.
``445. Payments into the Fund.
``446. Investment of assets of the Fund.''.
(b) Implementation Year Exceptions.--To avoid funding shortfalls in
the first year of implementation of subchapter V of chapter 11 of title
14, United States Code, as added by subsection (a), if formal actuarial
determinations are not available in time for budget preparation, the
amounts used in the first year under sections 445(a)(1)(A) and
445(a)(2)(A) of such title shall be set equal to those estimates in
sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively, of such
title if final determinations are not available. The original unfunded
liability, as defined in section 444(a) of such title, shall include an
adjustment to correct for this difference between the formal actuarial
determinations and the estimates in sections 444(b)(1)(A)(i) and
444(b)(1)(B)(i) of such title.
(c) Conforming Amendment.--Subparagraph (B) of section 255(g)(1) of
the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
905(g)(1)) is amended by striking ``Retired Pay, Coast Guard (69-0241-
0-1-403)'' and inserting ``Coast Guard Military Retirement Fund (69-
0241-01-403)''.
(d) Transfer of Existing Balances.--
(1) Transfer.--There shall be transferred into the Fund on
October 1, 2005, any obligated and unobligated balances of
appropriations made to the Department of Homeland Security that
are currently available for retired pay, and amounts so
transferred shall be part of the assets of the Fund.
(2) Fund defined.--For purposes of paragraph (1), the term
``Fund'' means the Coast Guard Military Retirement Fund
established under section 441 of title 14, United States Code,
as added by subsection (a).
(e) Effective Date.--Sections 443 (relating to payments from the
Fund) and 445 (relating to payments into the Fund) of title 14, United
States Code, as added by subsection (a), shall take effect on October
1, 2005.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
SEC. 411. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.
(a) Section 8906 of title 5, United States Code, is amended--
(1) by redesignating subsection (c) as subsection (c)(1)
and by adding at the end the following new paragraphs:
``(2) In addition to Government contributions required by
subsection (b) and paragraph (1), each employing agency shall
contribute amounts as determined by the Office to be necessary to
prefund the accruing actuarial cost of post-retirement health benefits
for each of the agency's current employees who are eligible for
Government contributions under this section. Amounts under this
paragraph shall be paid by the employing agency separate from other
contributions under this section, from the appropriations or fund used
for payment of the salary of the employee, on a schedule to be
determined by the Office.
``(3) Paragraph (2) shall not apply to the United States Postal
Service or the government of the District of Columbia.''; and
(2) by amending subsection (g)(1) to read as follows:
``(g)(1) Except as provided in paragraphs (2) and (3), all
Government contributions authorized by this section for health benefits
for an annuitant shall be paid from the Employees Health Benefits Fund
to the extent that funds are available in accordance with section
8909(h)(6) and, if necessary, from annual appropriations which are
authorized to be made for that purpose and which may be made available
until expended.''.
(b) Section 8909 of title 5, United States Code, is amended by
adding at the end the following new subsection:
``(h)(1) Not later than June 30, 2006, the Office shall determine
the existing liability of the Fund for post-retirement health benefits,
excluding the liability of the United States Postal Service for service
under section 8906(g)(2), under this chapter as of September 30, 2006.
The Office shall establish an amortization schedule, including a series
of annual installments commencing September 30, 2006, which provides
for the liquidation of such liability by September 30, 2043.
``(2) At the close of each fiscal year, for fiscal years beginning
after September 30, 2005, the Office shall determine the supplemental
liability of the Fund for post-retirement health benefits, excluding
the liability attributable to the United States Postal Service for
service subject to section 8906(g)(2), and shall establish an
amortization schedule, including a series of annual installments
commencing on September 30 of the subsequent fiscal year, which
provides for liquidation of such supplemental liability over 30 years.
``(3) Amortization schedules established under this paragraph shall
be set in accordance with generally accepted actuarial practices and
principles.
``(4) At the end of each fiscal year on and after September 30,
2006, the Office shall notify the Secretary of the Treasury of the
amounts of the next installments under the most recent amortization
schedules established under paragraphs (1) and (2). Before closing the
accounts for the fiscal year, the Secretary shall credit the sum of
these amounts (including in that sum any negative amount for the
amortization of the supplemental liability) to the Fund, as a
Government contribution, out of any money in the Treasury of the United
States not otherwise appropriated.
``(5) For the purpose of carrying out paragraphs (1) and (2), the
Office shall perform or arrange for actuarial determinations and
valuations and shall prescribe retention of such records as it
considers necessary for making periodic actuarial valuations of the
Fund.
``(6) Notwithstanding subsection (b), the amounts deposited into
the Fund pursuant to this subsection and section 8906(c)(2) to prefund
post-retirement health benefits costs shall be segregated within the
Fund so that such amounts, as well as earnings and proceeds under
subsection (c) attributable to them, may be used exclusively for the
purpose of paying Government contributions for post-retirement health
benefits costs. When such amounts are used in combination with amounts
withheld from annuitants to pay for health benefits, a portion of the
contributions shall then be set aside in the Fund as described in
subsection (b).
``(7) Under this subsection, `supplemental liability' means--
``(A) the actuarial present value for future post-
retirement health benefits that are the liability of the Fund,
less
``(B) the sum of--
``(i) the actuarial present value of all future
contributions by agencies and annuitants to the Fund
toward those benefits pursuant to section 8906;
``(ii) the present value of all scheduled
amortization payments to the Fund pursuant to
paragraphs (1) and (2);
``(iii) the Fund balance as of the date the
supplemental liability is determined, to the extent
that such balance is attributable to post-retirement
benefits; and
``(iv) any other appropriate amount, as determined
by the Office in accordance with generally accepted
actuarial practices and principles.''.
SEC. 412. FUNDING UNIFORMED SERVICES HEALTH BENEFITS FOR ALL RETIREES.
Title 10, United States Code, is amended--
(1) in the title of chapter 56, by striking ``DEPARTMENT OF
DEFENSE MEDICARE-ELIGIBLE'' and inserting ``UNIFORMED
SERVICES'';
(2) in section 1111--
(A) in subsection (a)--
(i) by striking ``Department of Defense
Medicare-Eligible'' and inserting ``Uniformed
Services'';
(ii) by striking ``Department of Defense
under''; and
(iii) by striking ``for medicare-eligible
beneficiaries'';
(B) in subsection (c)--
(i) by striking ``The Secretary of Defense
may'' and inserting ``The Secretary of Defense
shall'';
(ii) by striking ``with any other'' and
inserting ``with each'';
(iii) by striking ``Any such agreement''
and inserting ``Such agreements''; and
(iv) by striking ``administering Secretary
may'' and inserting ``administrative Secretary
shall'';
(3) in section 1113--
(A) in subsection (a)--
(i) by striking ``and are medicare
eligible'';
(ii) by striking ``who are medicare
eligible''; and
(iii) by adding at the end the following
new sentence: ``For the fiscal year starting
October 1, 2004, only, the payments will be
solely for the costs of members or former
members of a uniformed service who are entitled
to retired or retainer pay and are medicare-
eligible, and eligible dependents or survivors
who are medicare-eligible.'';
(B) in subsection (c)(1), by striking ``who are
medicare-eligible'';
(C) in subsection (d), by striking ``who are
medicare-eligible''; and
(D) in subsection (f), by striking ``If'' and
inserting ``When'';
(4) in section 1114, in subsection (a)(1), by striking
``Department of Defense Medicare-Eligible'' and inserting
``Uniformed Services'';
(5) in section 1115--
(A) in subsection (b)(2), by striking ``The amount
determined under paragraph (1) for any fiscal year is
the amount needed to be appropriated to the Department
of Defense (or to the other executive department having
jurisdiction over the participating uniformed
service)'' and inserting ``The amount determined under
paragraph (1), or the amount determined under section
1111(c) for a participating uniformed service, for any
fiscal year, is the amount needed to be appropriated to
the Department of Defense (or to any other executive
department having jurisdiction over a participating
uniformed service)'';
(B) in subsection (c)(2), by striking ``for
medicare eligible beneficiaries''; and
(C) by adding at the end the following new
subsection:
``(f) For the fiscal year starting October 1, 2004, only, the
amounts in this section shall be based solely on the costs of medicare-
eligible benefits of beneficiaries and the costs for their eligible
dependents or survivors who are medicare-eligible, and shall be
recalculated thereafter to reflect the cost of beneficiaries defined in
section 1111.''; and
(6) in section 1116--
(A) in subsection (a)(1)(A), by striking ``for
medicare-eligible beneficiaries'';
(B) in subsection (a)(2)(A), by striking ``for
medicare-eligible beneficiaries''; and
(C) in subsection (c), by striking ``subsection (a)
shall be paid from funds available for the health care
programs'' and inserting ``subsection (a) and section
1111(c) shall be paid from funds available for the pay
of members of the participating uniformed services
under the jurisdiction of the respective administering
secretaries''.
SEC. 413. EFFECTIVE DATE.
Except as otherwise provided, this title shall take effect upon
enactment with respect to fiscal years beginning after 2005.
Subtitle C--Limit on the Public Debt
SEC. 421. FINDINGS.
The Congress finds the following:
(1) Since 1997, Congress has paid down and retired
approximately $450,000,000,000 of the Government's debt which
was previously held by the public.
(2) This reduction in the Government's debt to the public
should permit a lowering of the statutory debt ceiling.
However, the statutory definition mingles both the public debt
and intragovernment liabilities, the latter of which do not
represent resource withdrawals for the economy.
(3) Intragovernment accounts such as the social security
trust funds, the Civil Service Retirement and Disability Fund,
the Department of Defense Military Retirement Fund, and the
Unemployment Trust Fund constitute accrued liabilities of the
Government which will be paid from future receipts, taxes, or
borrowing. If the Government issues debt to the public to fund
such liabilities in the future, that debt will properly be
subject to the debt ceiling.
(4) Properly defining the debt of the Government would
permit lowering the debt ceiling to take account of, and lock
in, the fiscal progress that has been made.
SEC. 422. PURPOSE.
It is the purpose of this subtitle to--
(1) properly define the public debt to exclude
intragovernment obligations; and
(2) reduce the public debt ceiling in recognition of the
reduction in outstanding public debt in recent years, and to
encourage further fiscal responsibility and progress toward
eliminating the remaining outstanding debt.
SEC. 423. LIMIT ON PUBLIC DEBT.
Section 3101 of title 31, United States Code, is amended to read as
follows:
``Sec. 3101. Public debt limit
``(a) In this section, the current redemption value of an
obligation issued on a discount basis and redeemable before maturity at
the option of its holder is deemed to be the face amount of the
obligation.
``(b) The face amount of obligations issued under this chapter and
the face amount of obligations whose principal and interest are
guaranteed by the United States Government (except guaranteed
obligations held by the Secretary of the Treasury and intragovernmental
holdings) may not be more than $4,393,000,000,000 outstanding at one
time, subject to changes periodically made in that amount as provided
by law.
``(c) For purposes of this section, the face amount, for any month,
of any obligation issued on a discount basis that is not redeemable
before maturity at the option of the holder of the obligation is an
amount equal to the sum of--
``(1) the original issue price of the obligation, plus
``(2) the portion of the discount on the obligation
attributable to periods before the beginning of such month (as
determined under the principles of section 1272(a) of the
Internal Revenue Code of 1986 without regard to any exceptions
contained in paragraph (2) of such section).
``(d) For purposes of this section, the term `intragovernment
holding' is any obligation issued by the Secretary of the Treasury to
any Federal trust fund or Government account, whether in respect of
public money, money otherwise required to be deposited in the Treasury,
or amounts appropriated.''.
Subtitle D--Risk-assumed Budgeting
SEC. 431. PURPOSES.
The purposes of this subtitle are to--
(1) budget for the long-term costs of Federal insurance
programs;
(2) improve congressional control of those costs; and
(3) periodically report on long-term budgetary trends.
CHAPTER 1--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
SEC. 432. FEDERAL INSURANCE PROGRAMS.
(a) In General.--The Congressional Budget Act of 1974 is amended by
adding after title V the following new title:
``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
``SEC. 602. BUDGETARY TREATMENT.
``(a) President's Budget.--Beginning with fiscal year 2011, the
budget of the Government pursuant to section 1105(a) of title 31,
United States Code, shall be based on the risk-assumed cost of Federal
insurance programs.
``(b) Budget Accounting.--For any Federal insurance program--
``(1) the program account shall--
``(A) pay the risk-assumed cost borne by the
taxpayer to the financing account, and
``(B) pay actual insurance program administrative
costs;
``(2) the financing account shall--
``(A) receive premiums and other income,
``(B) pay all claims for insurance and receive all
recoveries,
``(C) transfer to the program account on not less
than an annual basis amounts necessary to pay insurance
program administrative costs;
``(3) a negative risk-assumed cost shall be transferred
from the financing account to the program account, and shall be
transferred from the program account to the general fund; and
``(4) all payments by or receipts of the financing accounts
shall be treated in the budget as a means of financing.
``(c) Appropriations Required.--(1) Notwithstanding any other
provision of law, insurance commitments may be made for fiscal year
2011 and thereafter only to the extent that new budget authority to
cover their risk-assumed cost is provided in advance in an
appropriation Act.
``(2) An outstanding insurance commitment shall not be modified in
a manner that increases its risk-assumed cost unless budget authority
for the additional cost has been provided in advance.
``(3) Paragraph (1) shall not apply to Federal insurance programs
that constitute entitlements.
``(d) Reestimates.--The risk-assumed cost for a fiscal year shall
be reestimated in each subsequent year. Such reestimate can equal zero.
In the case of a positive reestimate, the amount of the reestimate
shall be paid from the program account to the financing account. In the
case of a negative reestimate, the amount of the reestimate shall be
paid from the financing account to the program account, and shall be
transferred from the program account to the general fund. Reestimates
shall be displayed as a distinct and separately identified subaccount
in the program account.
``(e) Administrative Expenses.--All funding for an agency's
administration of a Federal insurance program shall be displayed as a
distinct and separately identified subaccount in the program account.
``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR
FEDERAL INSURANCE PROGRAMS.
``(a) Agency Requirements.--Agencies with responsibility for
Federal insurance programs shall develop models to estimate their risk-
assumed cost by year through the budget horizon and shall submit those
models, all relevant data, a justification for critical assumptions,
and the annual projected risk-assumed costs to OMB with their budget
requests each year starting with the request for fiscal year 2007.
Agencies will likewise provide OMB with annual estimates of
modifications, if any, and reestimates of program costs.
``(b) Disclosure.--When the President submits a budget of the
Government pursuant to section 1105(a) of title 31, United States Code,
for fiscal year 2007, OMB shall publish a notice in the Federal
Register advising interested persons of the availability of information
describing the models, data (including sources), and critical
assumptions (including explicit or implicit discount rate assumptions)
that it or other executive branch entities would use to estimate the
risk-assumed cost of Federal insurance programs and giving such persons
an opportunity to submit comments. At the same time, the chairman of
the Committee on the Budget shall publish a notice for CBO in the
Federal Register advising interested persons of the availability of
information describing the models, data (including sources), and
critical assumptions (including explicit or implicit discount rate
assumptions) that it would use to estimate the risk-assumed cost of
Federal insurance programs and giving such interested persons an
opportunity to submit comments.
``(c) Revision.--(1) After consideration of comments pursuant to
subsection (b), and in consultation with the Committees on the Budget
of the House of Representatives and the Senate, OMB and CBO shall
revise the models, data, and major assumptions they would use to
estimate the risk-assumed cost of Federal insurance programs.
``(2) When the President submits a budget of the Government
pursuant to section 1105(a) of title 31, United States Code, for fiscal
year 2008, OMB shall publish a notice in the Federal Register advising
interested persons of the availability of information describing the
models, data (including sources), and critical assumptions (including
explicit or implicit discount rate assumptions) that it or other
executive branch entities used to estimate the risk-assumed cost of
Federal insurance programs.
``(d) Display.--
``(1) In general.--For fiscal years 2008, 2009, and 2010
the budget submissions of the President pursuant to section
1105(a) of title 31, United States Code, and CBO's reports on
the economic and budget outlook pursuant to section 202(e)(1)
and the President's budgets, shall for display purposes only,
estimate the risk-assumed cost of existing or proposed Federal
insurance programs.
``(2) OMB.--The display in the budget submissions of the
President for fiscal years 2008, 2009, and 2010 shall include--
``(A) a presentation for each Federal insurance
program in budget-account level detail of estimates of
risk-assumed cost;
``(B) a summary table of the risk-assumed costs of
Federal insurance programs; and
``(C) an alternate summary table of budget
functions and aggregates using risk-assumed rather than
cash-based cost estimates for Federal insurance
programs.
``(3) CBO.--In the second session of the 109th Congress and
the 110th Congress, CBO shall include in its estimates under
section 308, for display purposes only, the risk-assumed cost
of existing Federal insurance programs, or legislation that
CBO, in consultation with the Committees on the Budget of the
House of Representatives and the Senate, determines would
create a new Federal insurance program.
``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 months
after the budget submission of the President pursuant to section
1105(a) of title 31, United States Code, for fiscal year 2010, OMB,
CBO, and GAO shall each submit to the Committees on the Budget of the
House of Representatives and the Senate a report that evaluates the
advisability and appropriate implementation of this title.
``(2) Each report made pursuant to paragraph (1) shall address the
following:
``(A) The adequacy of risk-assumed estimation models used
and alternative modeling methods.
``(B) The availability and reliability of data or
information necessary to carry out this title.
``(C) The appropriateness of the explicit or implicit
discount rate used in the various risk-assumed estimation
models.
``(D) The advisability of specifying a statutory discount
rate (such as the Treasury rate) for use in risk-assumed
estimation models.
``(E) The ability of OMB, CBO, or GAO, as applicable, to
secure any data or information directly from any Federal agency
necessary to enable it to carry out this title.
``(F) The relationship between risk-assumed accrual
budgeting for Federal insurance programs and the specific
requirements of the Balanced Budget and Emergency Deficit
Control Act of 1985.
``(G) Whether Federal budgeting is improved by the
inclusion of risk-assumed cost estimates for Federal insurance
programs.
``(H) The advisability of including each of the programs
currently estimated on a risk-assumed cost basis in the Federal
budget on that basis.
``SEC. 604. DEFINITIONS.
``For purposes of this title:
``(1) The term `Federal insurance program' means a program
that makes insurance commitments and includes the list of such
programs included in the joint explanatory statement of
managers accompanying the conference report on the
Comprehensive Budget Process Reform Act of 1999.
``(2) The term `insurance commitment' means an agreement in
advance by a Federal agency to indemnify a nonfederal entity
against specified losses. This term does not include loan
guarantees as defined in title V or benefit programs such as
social security, medicare, and similar existing social
insurance programs.
``(3)(A) The term `risk-assumed cost' means the net present
value of the estimated cash flows to and from the Government
resulting from an insurance commitment or modification thereof.
``(B) The cash flows associated with an insurance
commitment include--
``(i) expected claims payments inherent in the
Government's commitment;
``(ii) net premiums (expected premium collections
received from or on behalf of the insured less expected
administrative expenses);
``(iii) expected recoveries; and
``(iv) expected changes in claims, premiums, or
recoveries resulting from the exercise by the insured
of any option included in the insurance commitment.
``(C) The cost of a modification is the difference between
the current estimate of the net present value of the remaining
cash flows under the terms of the insurance commitment, and the
current estimate of the net present value of the remaining cash
flows under the terms of the insurance commitment as modified.
``(D) The cost of a reestimate is the difference between
the net present value of the amount currently required by the
financing account to pay estimated claims and other
expenditures and the amount currently available in the
financing account. The cost of a reestimate shall be accounted
for in the current year in the budget of the Government
pursuant to section 1105(a) of title 31, United States Code.
``(E) For purposes of this definition, expected
administrative expenses shall be construed as the amount
estimated to be necessary for the proper administration of the
insurance program. This amount may differ from amounts actually
appropriated or otherwise made available for the administration
of the program.
``(4) The term `program account' means the budget account
for the risk-assumed cost, and for paying all costs of
administering the insurance program, and is the account from
which the risk-assumed cost is disbursed to the financing
account.
``(5) The term `financing account' means the nonbudget
account that is associated with each program account which
receives payments from or makes payments to the program
account, receives premiums and other payments from the public,
pays insurance claims, and holds balances.
``(6) The term `modification' means any Government action
that alters the risk-assumed cost of an existing insurance
commitment from the current estimate of cash flows. This
includes any action resulting from new legislation, or from the
exercise of administrative discretion under existing law, that
directly or indirectly alters the estimated cost of existing
insurance commitments.
``(7) The term `model' means any actuarial, financial,
econometric, probabilistic, or other methodology used to
estimate the expected frequency and magnitude of loss-producing
events, expected premiums or collections from or on behalf of
the insured, expected recoveries, and administrative expenses.
``(8) The term `current' has the same meaning as in section
250(c)(9) of the Balanced Budget and Emergency Deficit Control
Act of 1985.
``(9) The term `OMB' means the Director of the Office of
Management and Budget.
``(10) The term `CBO' means the Director of the
Congressional Budget Office.
``(11) The term `GAO' means the Comptroller General of the
United States.
``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST
ACCOUNT.
``(a) Authorization of Appropriations.--There is authorized to be
appropriated $600,000 for each of fiscal years 2005 through 2010 to the
Director of the Office of Management and Budget and each agency
responsible for administering a Federal program to carry out this
title.
``(b) Treasury Transactions With the Financing Accounts.--The
Secretary of the Treasury shall borrow from, receive from, lend to, or
pay the insurance financing accounts such amounts as may be
appropriate. The Secretary of the Treasury may prescribe forms and
denominations, maturities, and terms and conditions for the
transactions described above. The authorities described above shall not
be construed to supersede or override the authority of the head of a
Federal agency to administer and operate an insurance program. All the
transactions provided in this subsection shall be subject to the
provisions of subchapter II of chapter 15 of title 31, United States
Code. Cash balances of the financing accounts in excess of current
requirements shall be maintained in a form of uninvested funds, and the
Secretary of the Treasury shall pay interest on these funds.
``(c) Appropriation of Amount Necessary To Cover Risk-Assumed Cost
of Insurance Commitments at Transition Date.--(1) A financing account
is established on September 30, 2010, for each Federal insurance
program.
``(2) There is appropriated to each financing account the amount of
the risk-assumed cost of Federal insurance commitments outstanding for
that program as of the close of September 30, 2010.
``(3) These financing accounts shall be used in implementing the
budget accounting required by this title.
``SEC. 606. EFFECTIVE DATE.
``(a) In General.--This title shall take effect immediately and
shall expire on September 30, 2012.
``(b) Special Rule.--If this title is not reauthorized by September
30, 2012, then the accounting structure and budgetary treatment of
Federal insurance programs shall revert to the accounting structure and
budgetary treatment in effect immediately before the date of enactment
of this title.''.
(b) Conforming Amendment.--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 507 the
following new items:
``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for
Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost
account.
``Sec. 606. Effective date.''.
CHAPTER 2--REPORTS ON LONG-TERM BUDGETARY TRENDS
SEC. 441. REPORTS ON LONG-TERM BUDGETARY TRENDS.
(a) The President's Budget.--Section 1105(a) of title 31, United
States Code (as amended by section 152(e)), is further amended by
adding at the end the following new paragraph:
``(37) an analysis based upon current law and an analysis
based upon the policy assumptions underlying the budget
submission for every fifth year of the period of 75 fiscal
years beginning with such fiscal year, of the estimated levels of total
new budget authority and total budget outlays, estimated revenues,
estimated surpluses and deficits, and, for social security, medicare,
medicaid, and all other direct spending, estimated levels of total new
budget authority and total budget outlays; and a specification of its
underlying assumptions and a sensitivity analysis of factors that have
a significant effect on the projections made in each analysis; and a
comparison of the effects of each of the two analyses on the economy,
including such factors as inflation, foreign investment, interest
rates, and economic growth.''.
(b) CBO Reports.--Section 202(e)(1) of the Congressional Budget Act
of 1974 is amended by adding at the end the following new sentences:
``Such report shall also include an analysis based upon current law for
every fifth year of the period of 75 fiscal years beginning with such
fiscal year, of the estimated levels of total new budget authority and
total budget outlays, estimated revenues, estimated surpluses and
deficits, and, for social security, medicare, medicaid, and all other
direct spending, estimated levels of total new budget authority and
total budget outlays. The report described in the preceding sentence
shall also specify its underlying assumptions and set forth a
sensitivity analysis of factors that have a significant effect on the
projections made in the report.''.
TITLE V--MAINTAINING A COMMITMENT TO THE FAMILY BUDGET
Subtitle A--Further Enforcement Amendments
SEC. 501. SUPER-MAJORITY POINTS OF ORDER.
(a) Section 904 of the Congressional Budget Act of 1974 is amended
as follows:
(1) In subsection 904(c)(1), insert ``312(g), (h), (i), and
(j),'' before ``313,'', and insert ``316, 318,'' before
``904(c),''.
(2) In subsection (c) strike ``three-fifths'' each place it
appears and insert ``two-thirds''.
(3)(A) In subsection (d)(2), insert ``312(g), (h), (i), and
(j),'' before ``313,'', and insert ``316, 318,'' before
``904(c),''.
(B) In subsection (d), strike ``three-fifths'' each place
it appears and insert ``two-thirds''.
(4)(A) In subsections (c)(2) and (d)(3), strike
``311(a),''.
(B) In subsections (c)(1) and (d)(2) insert ``311(a),''
after ``310(d)(2),''.
(5) In subsection (e), strike ``2002'' and insert ``2010''.
SEC. 502. BUDGET RESOLUTION ENFORCEMENT POINT OF ORDER.
(a) Entitlement Point of Order.--Section 312 of the Congressional
Budget Act of 1974 (as amended by section 221(d)) is further amended by
adding at the end the following new subsection:
``(j) Budget Resolution Enforcement Point of Order.--It shall not
be in order in the House of Representatives or the Senate to consider
any joint resolution on the budget for a fiscal year, or amendment
thereto or conference report thereon, that--
``(1) is not consistent with the discretionary spending
limits set forth in section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985; or
``(2) provides for an increase in the aggregate level of
direct spending for the fiscal year of the resolution or any
ensuing fiscal year included in such resolution.''.
SEC. 503. POINT OF ORDER WAIVER PROTECTION.
Clause 6(c) of rule XIII of the Rules of the House of
Representatives is amended by striking the period at the end of
subparagraph (2) and inserting ``; or'' and by adding at the end the
following new subparagraph:
``(3) a rule or order that would waive the provisions of
any section of the Congressional Budget Act of 1974 referred to
in section 904(c)(1) of such Act or of section 302 of the
Family Budget Protection Act of 2004.''.
Subtitle B--The Byrd Rule
SEC. 511. LIMITATION ON BYRD RULE.
(a) Protection of Conference Reports.--Section 313 of the
Congressional Budget Act of 1974 is amended--
(1) in subsection (b)(1), by striking subparagraph (E)
through the semicolon at the end thereof and by redesignating
subparagraph (F) as subparagraph (E);
(2) in subsection (c), by striking ``and again upon the
submission of a conference report on such a reconciliation bill
or resolution,'';
(3) by striking subsection (d);
(4) by redesignating subsection (e) as subsection (d); and
(5) in subsection (e), as redesignated--
(A) by striking ``, motion, or conference report''
the first place it appears and inserting ``, or
motion''; and
(B) by striking ``, motion, or conference report''
the second and third places it appears and inserting
``or motion''.
(b) Conforming Amendment.--The first sentence of section 312(e) of
the Congressional Budget Act of 1974 is amended by inserting ``, except
for section 313,'' after ``Act''.
Subtitle C--Treatment of Extraneous Appropriations in Omnibus
Appropriation Measures
SEC. 521. TREATMENT OF EXTRANEOUS APPROPRIATIONS.
(a) In General.--Title III of the Congressional Budget Act of 1974
(as amended by section 127(a)) is further amended by adding at the end
the following new section:
``treatment of extraneous appropriations in omnibus appropriation
measures
``Sec. 318. (a) Point of Order.--It shall not be in order in the
House of Representatives or the Senate to consider an omnibus
appropriation measure, or any amendment thereto or conference report
thereon, that appropriates funds for any program, project, or activity
that is not within the subject-matter jurisdiction of any subcommittee
of the Committee on Appropriations of the House of Representatives or
Senate, as applicable, with jurisdiction over any regular appropriation
bill contained in such measure.
``(b) Definitions.--As used in this section:
``(1) The term `omnibus appropriation measure' means any
bill or joint resolution making continuing appropriations for a
fiscal year and that is comprised of more than one regular
appropriation bills.
``(2) The term `regular appropriation bill' means any
annual appropriation bill making appropriations, otherwise
making funds available, or granting authority, for any of the
following categories of projects and activities:
``(A) Agriculture, rural development, Food and Drug
Administration, and related agencies programs.
``(B) The Departments of Commerce, Justice, and
State, the Judiciary, and related agencies.
``(C) The Department of Defense.
``(D) The government of the District of Columbia
and other activities chargeable in whole or in part
against the revenues of the District.
``(E) Energy and water development.
``(F) Foreign operations, export financing, and
related programs.
``(G) The Department of Homeland Security.
``(H) The Department of the Interior and related
agencies.
``(I) The Departments of Labor, Health and Human
Services, and Education, and related agencies.
``(J) The Legislative Branch.
``(K) Military construction, family housing, and
base realignment and closure for the Department of
Defense.
``(L) The Departments of Transportation and
Treasury, and independent agencies.
``(M) The Departments of Veterans Affairs and
Housing and Urban Development, and sundry independent
agencies, boards, commissions, corporations, and
offices.''.
(b) Conforming Amendment.--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 317 the
following new item:
``Sec. 318. Treatment of extraneous appropriations in omnibus
appropriation measures.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Budget, and in addition to the Committees on Rules, Ways and Means, Appropriations, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Rules, Ways and Means, Appropriations, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Rules, Ways and Means, Appropriations, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Rules, Ways and Means, Appropriations, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Rules, Ways and Means, Appropriations, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Rules, Ways and Means, Appropriations, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Referred to the Subcommittee on Government Efficiency and Financial Management.
House Committee on The Budget Granted an extension for further consideration ending not later than July 23, 2004.
House Committee on The Budget Granted an extension for further consideration ending not later than Oct. 1, 2004.
House Committee on The Budget Granted an extension for further consideration ending not later than Nov. 19, 2004.
House Committee on The Budget Granted an extension for further consideration ending not later than Nov. 22, 2004.
House Committee on The Budget Granted an extension for further consideration ending not later than Dec. 10, 2004.