Balancing Our Obligations for the Long-Term Act of 2011 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to establish for FY2030-FY2050: (1) direct spending limits, and (2) total spending limits. Prescribes certain deficit control mechanisms (sequestration and reduction orders) for such period.
Requires the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) to: (1) determine common scorekeeping guidelines, and (2) prepare estimates in conformance with such guidelines.
Prescribes and/or revises requirements for discretionary, direct, total, and deficit sequestration preview and final reports. Eliminates Pay-As-You-Go reports.
Adds the following programs and activities to the list exempted from sequestration orders: (1) obligated balances of budget authority carried over from prior fiscal years; (2) federal obligations required to be paid under the U.S. Constitution or legally contractual obligations; (3) Claims, Judgments, and Relief Acts (20-1895-0-1-808); and (4) intragovernmental transfers.
Modifies and/or repeals certain mandatory general and special sequestration rules.
Amends the Act to establish the baseline for the three 10-fiscal years beginning after the last such outyear based on enacted law, as an estimate of current year levels of budget authority, outlays, or receipts for: (1) discretionary spending; (2) Medicare; (3) Medicaid and other health-related spending; (4) other direct spending; (5) social security; (6) other categories, as appropriate; and (7) net interest.
Amends the Congessional Budget Act of 1974 (CBA) to require the Director of the Congressional Budget Office (CBO) to make an annual projection for at least 40 years of total spending, revenue, deficits, and debt beginning with the first fiscal year after the last fiscal year covered in the most recently enacted budget resolution as a percentage of current projected gross domestic product (GDP), based on current law and current law levels as modified to maintain current policy.
Requires CBO to issue an annual Spending Review Report on the solvency of the Old-Age, Survivors, and Disability Insurance (OASDI) Trust Fund and the long-range sustainability of the spending levels of Medicare, Medicaid and other health-related spending as well as other direct spending. Prescribes procedures for introduction and expedited consideration in each chamber of spending review legislation if such report indicates OASDI Trust Fund insolvency or the non-sustainability of other specified direct spending.
Replaces the requirement that budget resolutions include new budget authority and outlays for each major functional category with a requirement that they include subtotals of new budget authority and outlays for nondefense discretionary spending, defense discretionary spending, Medicare, Medicaid and other health-related spending, other direct spending (excluding interest), contingencies, and net interest.
Requires budget resolutions to set forth appropriate levels, as a percent of the current GDP, for total federal revenues, total outlays, debt held by the public, and the surplus or deficit in the budget for the 10th, 20th, and 30th fiscal years after the last fiscal year of the budget resolution (long-term budgeting).
Requires inclusion in a budget resolution of specified long-term reconciliation directives.
Requires CBO to estimate whether each measure reported from committee (except those under the Committee on Appropriations) causes a net increase in direct spending in excess of $5 billion in any of the four ensuing 10-year periods. Makes it out of order in both chambers to consider any measure that causes such a net increase in deficits.
Requires CBO to prepare a specified long-term cost analysis and submit it to the requesting chairman or ranking member of the congressional budget committee or of the committee of jurisdiction for: (1) major legislation reported by any congressional committee, and (2) any bill or resolution requested by such chairman or ranking member.
Requires inclusion of specified long-term budgeting in the President's budget submission.
Requires the Government Accountability Office (GAO) to report, in the President's budget submission, on the federal government's financial condition, including the long-term unfunded obligations.
Amends the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to revise legislative procedures for congressional consideration of the President's proposed legislation in response to a Medicare funding warning (Medicare trigger).
Requires the appropriate chairman of the congressional budget committee to adjust the appropriate allocations, aggregates, and other levels to reflect the budget impact achieved by such introduced legislation for CBA purposes, the Gramm-Rudman-Hollings Act, the Rules of the House of Representatives, or the Standing Rules of the Senate.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3580 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 3580
To amend the Balanced Budget and Emergency Deficit Control Act of 1985
to provide for long-term budgeting, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 7, 2011
Mr. Mulvaney (for himself, Mr. Ryan of Wisconsin, Mr. Hensarling, Mr.
Rokita, Mr. Stutzman, Mr. Chaffetz, and Mr. Lankford) introduced the
following bill; which was referred to the Committee on the Budget, and
in addition to the Committees on Rules, Agriculture, Ways and Means,
Energy and Commerce, and Education and the Workforce, 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 amend the Balanced Budget and Emergency Deficit Control Act of 1985
to provide for long-term budgeting, 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 ``Balancing Our
Obligations for the Long-Term Act of 2011''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Long-term direct spending limits.
Sec. 3. Total spending limits.
Sec. 4. Reports and orders.
Sec. 5. Exempt programs and activities; special sequestration rules.
Sec. 6. Long-term baseline projections.
Sec. 7. Five-year fiscal sustainability review.
Sec. 8. Concurrent resolutions on the budget to include long-term
budgeting.
Sec. 9. Long-term reconciliation.
Sec. 10. Long-term spending increase point of order.
Sec. 11. CBO and OMB projections.
Sec. 12. Long-term analysis by Congressional Budget Office of
legislation.
Sec. 13. Long-term budgeting reflected in President's budget
submissions.
Sec. 14. GAO and OMB statements of the Federal Government's financial
condition.
Sec. 15. Medicare trigger.
SEC. 2. LONG-TERM DIRECT SPENDING LIMITS.
(a) Control of Direct Spending.--Section 252 of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended to read as
follows:
``SEC. 252. DIRECT SPENDING LIMITS.
``(a) Direct Spending Limits.--The total level of direct spending
as a percentage of current gross domestic product of the United States
for each fiscal year set forth below is as follows:
``(1) For fiscal year 2030--
``(A) for Medicare, 4.3 percent;
``(B) for Medicaid and other health-related spending, 1.5
percent; and
``(C) for all other direct spending, 1.0 percent.
``(2) For fiscal year 2040--
``(A) for Medicare, 5.0 percent;
``(B) for Medicaid and other health-related spending, 1.3
percent; and
``(C) for all other direct spending, 1.2 percent.
``(3) For fiscal year 2050--
``(A) for Medicare, 4.8 percent;
``(B) for Medicaid and other health-related spending, 1.0
percent; and
``(C) for all other direct spending, 0.8 percent.
``(b) Sequestration.--(1) Within 15 calendar days after Congress
adjourns to end a session and on the same day as a sequestration under
section 252A, but after any sequestration required by that section,
there shall be a sequestration to eliminate any direct spending in
excess of the direct spending limits set forth in subsection (a) for
the budget year.
``(2) The amount required to be sequestered in a fiscal year under
paragraph (1)--
``(A) for Medicare spending shall be obtained from non-
exempt direct spending accounts for Medicare;
``(B) for Medicaid and other health-related spending shall
be obtained from non-exempt direct spending accounts for
Medicaid and other health-related spending; and
``(C) for all other direct spending shall be obtained from
non-exempt direct spending accounts.
``(3) Each account referred to in subparagraph (A), (B), or (C) of
paragraph (2) shall be reduced by the uniform percentage necessary to
reduce any excess direct spending in accounts in that subparagraph to
the applicable level set forth in subsection (a) for the budget year.
``(c) Scorekeeping Guidelines.--OMB and CBO, after consultation
with each other and the Committees on the Budget of the House of
Representatives and the Senate, shall--
``(1) determine common scorekeeping guidelines; and
``(2) in conformance with such guidelines, prepare
estimates under this section''.
(b) Definitions.--Section 250(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by adding at the end
the following new paragraphs:
``(22) The term `Medicare' means programs within budget
function 570.
``(23) The term `Medicaid and other health-related
spending' means programs within budget function 550.
``(24) The term `other direct spending' means direct
spending programs other than those within budget functions 550
and 570, excluding Social Security and net interest.''.
(c) Conforming Amendment.--The item relating to section 252 in the
table of contents set forth in 250(a) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as follows:
``Sec. 252. Direct spending limits.''.
SEC. 3. TOTAL SPENDING LIMITS.
(a) Total Spending Limits.--The Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by adding after section 252 the
following new section:
``SEC. 252A. TOTAL SPENDING LIMITS.
``(a) Sequestration.--(1) Within 15 calendar days after Congress
adjourns to end a session and on the same day as a spending reduction
ordered under section 252, but after any spending reduction required by
that section, there shall be a sequestration of all non-exempt direct
spending accounts and discretionary accounts to eliminate any total
spending in excess of the total spending limits set forth in subsection
(c) for the budget year.
``(2) Each account referred to in paragraph (1) shall be reduced by
the uniform percentage necessary to reduce total spending to the
applicable level set forth in subsection (c) for the budget year.
``(b) Total Spending Limits.--
``(1) fiscal year 2030: 20 percent;
``(2) fiscal year 2040: 20 percent; and
``(3) fiscal year 2050: 20 percent;
of the current projected gross domestic product of the United States
for the budget year.''.
(b) Definitions.--Section 250(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (as amended by section 2) is
further amended by adding at the end the following new paragraph:
``(25) The term `total spending' means all outlays of the
Government, including those from off-budget entities and budget
authority and outlays flowing therefrom.''.
(c) Conforming Amendment.--The table of contents set forth in
250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985
is amended by inserting after the item relating to section 252 the
following new item:
``Sec. 252A. Total spending limits.''.
SEC. 4. REPORTS AND ORDERS.
Section 254 of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended--
(1) in subsection (c), by repealing paragraph (1) and
inserting the following new paragraph:
``(1) Reporting requirement.--On the dates specified in
subsection (a), OMB and CBO shall issue a preview report
regarding discretionary, direct, total, and deficit
sequestration based on laws enacted through those dates.'';
(2) in subsection (c), by repealing paragraph (3) and
inserting the following new paragraph:
``(3) Direct spending sequestration reports.--The preview
report shall set forth for the budget year estimates for each
of the following:
``(A) The amount of any excess direct spending for
Medicare, for Medicaid and other health-related
spending, and for all other direct spending.
``(B) The sequestration percentage or percentages
necessary to reduce direct spending in accounts for
Medicare, for Medicaid and other health-related
spending, and for all other direct spending, as
applicable.
``(C) For a budget year, the current projected
gross domestic product of the United States for that
year.'';
(3) in subsection (c), by repealing paragraph (4), by
redesignating paragraph (5) as paragraph (6), and by inserting
the following new paragraphs:
``(4) Total spending sequestration reports.--The preview
report shall set forth for the budget years 2030, 2040, and
2050 estimates for each of the following:
``(A) The amount of any excess total spending.
``(B) The sequestration percentage necessary to
eliminate any excess total spending.
``(5) Deficit sequestration reports.--The preview report
shall set forth for the budget year estimates for each of the
following:
``(A) The amount of the current gross domestic
product of the United States.
``(B) The estimated deficit.
``(C) The amount by which the estimated deficit
exceeds the deficit limit.
``(D) The sequestration percentage necessary to
achieve the required reduction in spending to comply
with the applicable deficit limit set forth in section
253(c).'';
(4) in subsection (f)(3), by amending the side heading and
the first sentence to read as follows: ``Direct, total, and
deficit sequestration reports.--The final report shall contain
all the information required in the direct, total, and deficit
sequestration preview reports.'';
(5) in subsection (f), by amending paragraph (4) to read as
follows:
``(4) Explanation of differences.--The OMB report shall
explain any material differences between OMB and CBO estimates
in any comparable reports.''; and
(6) in subsection (g), by striking ``(f)(4)'' and inserting
``(f)(5)''.
SEC. 5. EXEMPT PROGRAMS AND ACTIVITIES; SPECIAL SEQUESTRATION RULES.
Sections 255 and 256 of the Balanced Budget and Emergency Deficit
Control Act of 1985 are amended to read as follows:
``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
``(a) Exempt Programs and Activities.--The following shall be
exempt from reduction under any order issued under this part:
``(1) Payments for net interest.
``(2) Benefits payable under the old-age, survivors, and
disability insurance program established under title II of the
Social Security Act.
``(3) Compensation, pensions, and benefits provided to
veterans defined as direct spending payable by the Department
of Veterans Affairs.
``(4) Obligated balances of budget authority carried over
from prior fiscal years.
``(5) Any obligations of the Federal Government required to
be paid under the United States Constitution or legally
contractual obligations.
``(6) Claims, Judgments, and Relief Acts (20-1895-0-1-808).
``(7) Intragovernmental transfers.
``(b) Optional Exemption of Military Personnel.--
``(1) In general.--The President may, with respect to any
military personnel 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. 256. GENERAL AND SPECIAL SEQUESTRATION RULES.
``(a) Limitations.--(1) No direct spending program that OMB
estimates for the budget year is growing at a rate that exceeds the
estimated rate of growth of the consumer price index for that year
shall be subject to a spending reduction of more than four percent of
its budgetary resources.
``(2) No direct spending program that OMB estimates for the budget
year is growing at a rate that is equal to or less than the consumer
price index for that year shall be subject to a spending reduction.
``(b) Student Loans.--For all student loans under part B or D of
title IV of the Higher Education Act of 1965 made during the period
when a sequestration order under section 254 is in effect as required
by section 252, 252A, or 253, origination fees under sections 438(c)(2)
and (6) and 455(c) and loan processing and issuance fees under section
428(f)(1)(A)(ii) of that Act shall each be increased by the uniform
percentage specified in that sequestration order, and, for student
loans originated during the period of the sequestration accruing during
the period of the sequestration shall be reduced by the uniform
percentage specified in that sequestration order.
``(c) Special Rules for Medicare Program.--
``(1) Calculation of reduction in payment amounts.--To
achieve the total percentage reduction in those programs
required by section 252, 252A, or 253, subject to paragraph
(2), and notwithstanding section 710 of the Social Security
Act, OMB shall determine, and the applicable Presidential order
under section 254 shall implement, the percentage reduction
that shall apply, with respect to the health insurance programs
under title XVIII of the Social Security Act--
``(A) in the case of parts A and B of such title,
to individual payments for services furnished during
the one-year period beginning on the first day of the
first month beginning after the date the order is
issued (or, if later, the date specified in paragraph
(4)); and
``(B) in the case of parts C and D, to monthly
payments under contracts under such parts for the same
one-year period;
such that the reduction made in payments under that order shall
achieve the required total percentage reduction in those
payments for that period.
``(2) Uniform reduction rate; maximum permissible
reduction.--Reductions in payments for programs and activities
under such title XVIII pursuant to a sequestration order under
section 254 shall be at a uniform rate across all such programs
and activities subject to such order.
``(3) Timing of application of reductions.--
``(A) In general.--Except as provided in
subparagraph (B), 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 during the effective
period of the order. For purposes of the previous
sentence, in the case of inpatient services furnished
for an individual, the services shall be considered to
be furnished on the date of the individual's discharge
from the inpatient facility.
``(B) Payment on the basis of cost reporting
periods.--In the case in which payment for services of
a provider of services is made under title XVIII of the
Social Security Act on a basis relating to the
reasonable cost incurred for the services during a cost
reporting period of the provider, if a reduction is
made under paragraph (1) in payment amounts pursuant to
a sequestration order, the reduction shall be applied
to payment for costs for such services incurred at any
time during each cost reporting period of the provider
any part of which occurs during the effective period of
the order, but only (for each such cost reporting
period) in the same proportion as the fraction of the
cost reporting period that occurs during the effective
period of the order.
``(4) Timing of subsequent sequestration order.--A
sequestration order required by section 252, 252A, or 253 with
respect to programs under such title XVIII shall not take
effect until the first month beginning after the end of the
effective period of any prior sequestration order with respect
to such programs, as determined in accordance with paragraph
(1).
``(5) 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.
``(6) Sequestration disregarded in computing payment
amounts.--The Secretary of Health and Human Services shall not
take into account any reductions in payment amounts which have
been or may be effected under this part, for purposes of
computing any adjustments to payment rates under such title
XVIII, specifically including--
``(A) the part C growth percentage under section
1853(c)(6);
``(B) the part D annual growth rate under section
1860D-2(b)(6); and
``(C) application of risk corridors to part D
payment rates under section 1860D-15(e).
``(d) Effects of Sequestration.--The effects of sequestration shall
be as follows:
``(1) Budgetary resources sequestered from any account
shall be permanently cancelled, except as provided in paragraph
(6).
``(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
the remaining amount of the appropriation being obligated in a
manner consistent with program allocation formulas in
substantive law.
``(4) Except as otherwise provided, obligations in
sequestered accounts shall be reduced only in the fiscal year
in which a sequester occurs.
``(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) Budgetary resources sequestered in revolving, trust,
and special fund accounts and offsetting collections
sequestered in appropriation accounts shall not be available
for obligation during the fiscal year in which the
sequestration occurs, but shall be available in subsequent
years to the extent otherwise provided in law.
``(e) 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) Loan
eligibility under any contract entered into with a person by
the Commodity Credit Corporation prior to the time an order has
been issued under section 254 shall not be reduced by an order
subsequently issued. Subject to subparagraph (B), after an
order is issued under such section for a fiscal year, any cash
payments for loans or loan deficiencies made by the Commodity
Credit Corporation shall be subject to reduction under the
order.
``(B) Each loan 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 an
order under section 254, the order shall provide that the
necessary reduction in payments under contracts applicable to
the commodity be uniformly applied to all contracts for the
next succeeding crop of the commodity, under the authority
provided in paragraph (3).
``(3) Delayed reduction in outlays permissible.--
Notwithstanding any other provision of this title, if an order
under section 254 is issued with respect to a fiscal year, any
reduction under the order applicable to contracts described in
paragraph (1) may provide for reductions in outlays for the
account involved to occur in the fiscal year following the
fiscal year to which the order applies.
``(4) Uniform percentage rate of reduction and other
limitations.--All reductions described in paragraph (2) which
are required to be made in connection with an order issued
under section 254 with respect to a fiscal year 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.
``(5) Dairy program.--Notwithstanding any other provision
of this subsection, as the sole means of achieving any
reduction in outlays under the milk price support program, the
Secretary of Agriculture shall provide for a reduction to be
made in the price received by producers for all milk produced
in the United States and marketed by producers for commercial
use. That price reduction (measured in cents per hundred weight
of milk marketed) shall occur under section 201(d)(2)(A) of the
Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin
on the day any sequestration order is issued under section 254,
and shall not exceed the aggregate amount of the reduction in
outlays under the milk price support program that otherwise
would have been achieved by reducing payments for the purchase
of milk or the products of milk under this subsection during
the applicable fiscal year.
``(6) Certain authority not to be limited.--Nothing in this
joint resolution shall limit or reduce, in any way, any
appropriation that provides the Commodity Credit Corporation
with budget authority to cover the Corporation's net realized
losses.''.
SEC. 6. LONG-TERM BASELINE PROJECTIONS.
Section 257(a) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended--
(1) by inserting ``(1) Baseline for the budget year.--''
before ``For any budget year'' and by moving the text 2 ems to
the right; and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Long-term estimates.--For the three ten fiscal-year
periods beginning after the last such outyear based on enacted
law, the baseline refers to an estimate of current year levels
of budget authority, outlays, or receipts for--
``(A) discretionary spending;
``(B) Medicare;
``(C) Medicaid and other health-related spending;
``(D) other direct spending;
``(E) social security;
``(F) other categories, as appropriate; and
``(G) net interest,
as a percentage of the current gross domestic product of the
United States.''.
SEC. 7. FIVE-YEAR FISCAL SUSTAINABILITY REVIEW.
(a) Five-Year Fiscal Sustainability Review.--Title III of the
Congressional Budget Act of 1974 is amended by adding at the end the
following new section:
``five-year fiscal sustainability review
``Sec. 316. (a) Congressional Spending Review Report.--Beginning
for fiscal year 2018 and every fifth year thereafter, not later than 45
calendar days after the date of the transmittal of the report referred
to in subsection 308(e), the Committees on the Budget of the House of
Representatives and the Senate shall issue, and have printed in the
Congressional Record, an assessment of such report.
``(b) Committee Recommendations.--Not later than 30 calendar days
after the date of the report of the review referred to in subsection
(c), the committees of the House of Representatives and the Senate
shall submit to the Committees on the Budget of the House of
Representatives and Senate, as applicable, recommendations, if any,
such committees deem appropriate in response to the Spending Review
Report issued pursuant to subsection (c).
``(c) Expedited Consideration of Spending Review Legislation.--
``(1) Consideration in the house of representatives.--
``(A) Introduction of spending review
legislation.--(i) If the report referred to in section
308(e) indicates that the OASDI Trust Funds are not
solvent, or that Medicare, Medicaid and other health-
related spending, or other direct spending programs are
not sustainable, or total spending exceeds the limits
set forth in section 252 or 252A of the Balanced Budget
and Emergency Deficit Control Act of 1985 for any year
within the period referred to in such report, then not
later than 30 calendar days after the transmittal of
the report referred to in subsection (a), if any, the
majority leader and minority leader of the House of
Representatives shall each introduce legislation to
make such programs sustainable or solvent, as
applicable.
``(ii) If spending review legislation is not
introduced pursuant to this subparagraph--
``(I) by the majority leader, the chairman
of the Committee on the Budget shall introduce
spending review legislation; or
``(II) by the minority leader, the ranking
member of the Committee on the Budget shall
introduce spending review legislation,
not later than 45 calendar days after the transmittal
of the report referred to in subsection (a) sufficient
to achieve the same spending levels.
``(iii) Spending review legislation shall be
referred to the Committee on the Budget of the House of
Representatives.
``(iv) Spending review legislation introduced
pursuant to this section shall cause total spending to
be reduced by an amount equal or greater than the
amount of the breach of the limits set forth in section
252 or 252A of the Balanced Budget and Emergency
Deficit Control Act of 1985, and may cause the OASDI
Trust Funds to achieve solvency, and may cause
Medicare, Medicaid and other health-related spending,
and other direct spending programs to achieve
sustainability.
``(B) Referral and reporting.--The Committee on the
Budget of the House of Representatives shall report
spending review legislation to the House of
Representatives not later than the seventh legislative
day after the date of introduction of the legislation
referred to in subparagraph (A). If such committee
fails to report the spending review legislation within
that period or the House of Representatives has adopted
a concurrent resolution providing for adjournment sine
die at the end of a Congress, such committee shall be
automatically discharged from further consideration of
the spending review legislation and it shall be placed
on the appropriate calendar.
``(C) Proceeding to consideration.--After spending
review legislation is reported by or discharged from
the Committee on the Budget or the House of
Representatives has adopted a concurrent resolution
providing for adjournment sine die at the end of a
Congress, it shall be in order to move to proceed to
consider the spending review legislation in the House
of Representatives. Such a motion shall be in order in
the legislative schedule within two legislative days
after the day on which the proponent announces his
intention to offer the motion. Such a motion shall not
be in order after the House of Representatives has
disposed of a motion to proceed with respect to that
special message. The previous question shall be
considered as ordered on the motion to its adoption
without intervening motion. A motion to reconsider the
vote by which the motion is disposed of shall not be in
order.
``(D) Consideration.--The spending review
legislation shall be considered as read. All points of
order against spending review legislation and against
its consideration are waived. The previous question
shall be considered as ordered on a spending review
legislation to its passage without intervening motion
except five hours of debate equally divided and
controlled by the proponent and an opponent and one
motion to limit debate on the spending review
legislation. A motion to reconsider the vote on passage
of the spending review legislation shall not be in
order.
``(E) Senate spending review legislation.--Spending
review legislation received from the Senate shall not
be referred to any committee.
``(2) Consideration in the senate.--
``(A) Motion to proceed to consideration.--A motion
to proceed to the consideration of spending review
legislation under this subsection in the Senate shall
not be debatable. It shall not be in order to move to
reconsider the vote by which the motion to proceed is
agreed to or disagreed to.
``(B) Limits on debate.--Debate in the Senate on
spending review legislation under this subsection, and
all debatable motions and appeals in connection
therewith (including debate pursuant to subparagraph
(D)), shall not exceed 10 hours, equally divided and
controlled in the usual form.
``(C) Appeals.--Debate in the Senate on any
debatable motion or appeal in connection with spending
review legislation under this subsection shall be
limited to not more than 1 hour, to be equally divided
and controlled in the usual form.
``(D) Motion to limit debate.--A motion in the
Senate to further limit debate on spending review
legislation under this subsection is not debatable.
``(E) Motion to recommit.--A motion to recommit
spending review legislation under this subsection is
not in order.
``(F) Consideration of the house of representatives
spending review legislation.--(i) If the Senate has
received the House of Representatives companion
resolution to the spending review legislation
introduced in the Senate prior to the vote required
under paragraph (1)(C), then the Senate may consider,
and the vote under paragraph (1)(C) may occur on, the
House of Representatives companion resolution.
``(ii) If the Senate votes, pursuant to paragraph
(1)(C), on the spending review legislation introduced
in the Senate, then immediately following that vote, or
upon receipt of the House of Representatives companion
resolution, the House of Representatives spending
review legislation shall be deemed to be considered,
read the third time, and the vote on passage of the
Senate resolution shall be considered to be the vote on
the spending review legislation received from the House
of Representatives.
``(3) Jurisdiction.--During consideration of spending
review legislation under this section, the Committees on the
Budget of the House of Representatives and Senate shall have
jurisdiction over such legislation for all purposes of the
rules of either House.''.
(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 adding after the item relating to section 318 the
following new item:
``Sec. 316. Five-year fiscal sustainability review.''.
SEC. 8. CONCURRENT RESOLUTIONS ON THE BUDGET TO INCLUDE LONG-TERM
BUDGETING.
(a) Required Contents of Concurrent Resolution.--Section 301(a) of
the Congressional Budget Act of 1974 (2 U.S.C. 632(a)) is amended by
striking paragraph (4) and inserting the following:
``(4) subtotals of new budget authority and outlays for
nondefense discretionary spending, defense discretionary
spending, Medicare, Medicaid and other health-related spending,
other direct spending (excluding interest), contingencies, and
net interest;''.
(b) Long-Term Budgeting.--Section 301 of the Congressional Budget
Act of 1974 is amended by adding at the end the following new
subsection:
``(k) Long-Term Budgeting.--In addition to the levels required to
be included in a concurrent resolution on the budget under subsection
(a), such concurrent resolution shall set forth appropriate levels, as
a percent of the current gross domestic product of the United States,
for total Federal revenues, total outlays, debt held by the public, and
the surplus or deficit in the budget for the fiscal year 10 years, 20
years, and 30 years after the last fiscal year of the concurrent
resolution on the budget.''.
SEC. 9. LONG-TERM RECONCILIATION.
(a) Long-Term Reconciliation.--Section 310 of the Congressional
Budget Act of 1974 is amended by adding at the end the following new
subsection:
``(h) Long-Term Reconciliation Directives in a Concurrent
Resolution on the Budget.--
``(1) Long-term reconciliation directives.--In addition to
a reconciliation measure as set forth in subsection (a), a
concurrent resolution on the budget for any fiscal year, to the
extent necessary to effectuate the spending levels as set forth
for such categories in section 301(a) (providing for long-term
spending levels as a percentage of gross domestic product) of
such resolution, may--
``(A) specify the total amount by which Medicare,
Medicaid, the OASDI Trust Funds, and other direct
spending outlays are to be reduced within the
jurisdiction of a committee as a percentage of gross
domestic product of such fiscal year; and
``(B) direct that committee to determine and
recommend changes to accomplish a reduction of such
total amount for such categories as a percentage of
gross domestic product.
``(2) Limitation on amendments to long-term reconciliation
legislation.--(A) It shall not be in order in the House of
Representatives to consider any amendment to a reconciliation
bill or reconciliation resolution if such amendment decreases
outlay reductions below the level of such outlay reductions
provided (for the fiscal years covered) in the reconciliation
instructions which relate to such long-term reconciliation
bill.
``(B) It shall not be in order in the Senate to consider
any amendment to a reconciliation bill or reconciliation
resolution if such amendment decreases outlay reductions below
the level of such outlay reductions provided (for the fiscal
years covered) in the reconciliation instructions which relate
to such long-term reconciliation bill.
``(C) Subparagraphs (A) and (B) shall not apply if a
declaration of war by the Congress is in effect.
``(D) For purposes of this section, the levels of outlays
as a percentage of a gross domestic product for a fiscal year
shall be determined on the basis of estimates made by the
Committee on the Budget of the House of Representatives or of
the Senate.
``(E) In the Senate, a motion to strike a provision shall
always be in order.
``(3) Subject matter.--Subject matter included in a long-
term reconciliation bill may be any of the following:
``(A) Any part of the Medicare Program.
``(B) Medicaid and other health-related spending.
``(C) The Old-Age, Survivors, and Disability
Insurance Trust Fund to make the program solvent.
``(D) Other direct spending.
``(4) Application.--Subsections (b)(1)(E) and (F) of
section 313 and subsections (c), (d), and (g) of this section
shall not apply to long-term reconciliation measures reported
under this subsection. Reforms that are necessary for the
fundamental restructuring of any program included in any such
measure shall not be deemed to be extraneous for purposes of
such section 313.''.
(b) Conforming Amendment.--Section 310(b) of the Congressional
Budget Act of 1974 is amended by striking ``subsection (a)'' and
inserting ``subsections (a) and (h)''.
SEC. 10. LONG-TERM SPENDING INCREASE POINT OF ORDER.
(a) In General.--Title III of the Congressional Budget Act of 1974
(as amended by section 6) is further amended by adding at the end the
following new section:
``long-term spending increase point of order
``Sec. 317. (a) Congressional Budget Office Analysis of
Proposals.--The Director of the Congressional Budget Office shall, to
the extent practicable, prepare for each bill and joint resolution
reported from committee, and amendments thereto and conference reports
thereon, an estimate of whether the measure causes, relative to current
law, a net increase in direct spending in excess of $5,000,000,000 in
any of the four ten fiscal-year periods beginning in the first fiscal
year after the last fiscal year covered in the most recently enacted
concurrent resolution on the budget.
``(b) In the Senate.--It shall not be in order in the Senate to
consider any bill, joint resolution, amendment, motion, or conference
report that causes a net increase in deficits in excess of
$5,000,000,000 in any of the four ten fiscal-year periods beginning in
the first fiscal year after the last fiscal year covered in the most
recently enacted concurrent resolution on the budget.
``(c) In the House of Representatives.--It shall not be in order in
the House of Representatives to consider any bill, joint resolution,
amendment, motion, or conference report that causes a net increase in
deficits in excess of $5,000,000,000 in any of the four ten fiscal-year
periods beginning in the first fiscal year after the last fiscal year
covered in the most recently enacted concurrent resolution on the
budget.
``(d) Determinations of Budget Levels.--For purposes of this
section, the levels of net deficit increases shall be determined on the
basis of estimates provided by the chairmen of the Senate and House
Committees on the Budget, as applicable.''.
(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 319 the
following new item:
``Sec. 317. Long-term spending increase point of order.''.
SEC. 11. CBO AND OMB PROJECTIONS.
(a) Congressional Budget Office.--Section 308 of the Congressional
Budget Act of 1974 is amended by adding at the end the following new
subsections:
``(e) Long-Term Projections.--Each year, the Director of the
Congressional Budget Office shall issue a report projecting total
spending, revenue, deficits, and debt for at least 40 years beginning
with the first fiscal year after the last fiscal year covered in the
most recently enacted concurrent resolution on the budget as a
percentage of current projected gross domestic product annually based
on current law and current law levels as modified to maintain current
policy.
``(f) CBO Spending Review Report Issuance.--As a component of the
report required by subsection (e), the Director of the Congressional
Budget Office shall issue a Spending Review Report and transmit such
report to the Committees on the Budget of the House of Representatives
and the Senate.
``(g) Content of Spending Review Report.--The content of the
Spending Review Report referred to in subsection (f) shall include
analyses of the following:
``(1) OASDI.--The solvency of the Old-Age, Survivors, and
Disability Insurance Trust Fund.
``(2) Medicare.--The long-range sustainability of the
spending levels of Medicare.
``(3) Medicaid and other health-related spending.--The
long-range sustainability of the spending levels of Medicaid
and other health-related spending.
``(4) Other direct spending.--The long-range sustainability
of spending levels of other direct spending.
``(5) Long-term sustainability.--The long-term
sustainability of total Government outlays, deficit, and debt.
``(6) Net interest.--Projections of net interest.
``(h) Definitions.--For purposes of the development of the Spending
Review Report referred to in subsection (f):
``(1) Solvency of the oasdi.--The term `solvency' as used
in this section means the solvency of the Old-Age Security and
Disability Insurance Trust Funds over a 75-year period
beginning in the year the Spending Review Report is reported
and in the last year of that period.
``(2) Sustainability.--The term `sustainability' means that
the projected growth in the Medicare program, the Medicaid
program or other health-related spending, or any other direct
spending program (other than the Old-Age Security and
Disability Insurance Trust Funds or the Medicare or Medicaid
program), beginning with the first fiscal year after the last
fiscal year covered in the most recently enacted concurrent
resolution on the budget, does not exceed the annual rate of
growth of the gross domestic product of the United States.''.
(b) Office of Management and Budget.--Section 1105(a) of title 31,
United States Code, is amended by redesignating the second paragraph
(37) as paragraph (39) and by adding at the end the following new
paragraph:
``(40) long-term projections of total spending over 30
years (or 75 years in the case of Social Security) as a
percentage of gross domestic product annually and the impact of
proposed policies over that period.''.
SEC. 12. LONG-TERM ANALYSIS BY CONGRESSIONAL BUDGET OFFICE OF
LEGISLATION.
(a) Long-Term Analysis by Congressional Budget Office.--(1) Part A
of title IV of the Congressional Budget Act of 1974 is amended by
adding at the end the following new section:
``long-term analysis by congressional budget office of legislation
``Sec. 407. (a) Analysis.--The Director of the Congressional
Budget Office shall, to the extent practicable, prepare--
``(1) for major legislation reported by any committee of
the House of Representatives or the Senate; and
``(2) for any bill or resolution so requested by the
chairman or ranking member of the Committee on the Budget or
the chairman or ranking member of the committee of
jurisdiction,
and submit to such committee or to the chairman of the Committee on the
Budget making such request an estimate of the costs which would be
incurred in carrying out such bill or resolution for the ten fiscal-
year period beginning with the first fiscal year after the last fiscal
year covered by the most recently enacted concurrent resolution on the
budget subject to the analysis of such bill or resolution by the
Director under section 402, together with the basis for each such
estimate. The estimates, comparison, and description so submitted shall
be included in the report accompanying such bill or resolution if
timely submitted to such committee before such report is filed.
``(b) Definition.--As used in this section, the term `major
legislation' means any bill or joint resolution if the gross spending
or revenue effect of such bill or resolution for any fiscal year for
which an estimate was made under section 402 is greater than .25
percent of the estimated gross domestic product (GDP) of the United
States for the fiscal year.''.
(2) The table of contents set forth in section 1(b) of the
Congressional Budget Act of 1974 is amended by inserting after the item
relating to section 406 the following new item:
``Sec. 407. Long-term analysis by Congressional Budget Office of
legislation.''.
(b) Analysis by Congressional Budget Office.--Paragraph (1) of
section 402 of the Congressional Budget Act of 1974 is amended by
striking ``in each of the 4 fiscal years following such fiscal year''
and inserting ``in at least each of the 9 fiscal years following such
fiscal year''.
SEC. 13. LONG-TERM BUDGETING REFLECTED IN PRESIDENT'S BUDGET
SUBMISSIONS.
Paragraphs (5), (6), and (12)(B) of section 1105(a) of title 31,
United States Code, are amended by striking ``4 fiscal years after that
year'' and inserting ``9 fiscal years after that year and the ten
fiscal-year period beginning thereafter''.
SEC. 14. GAO AND OMB STATEMENTS OF THE FEDERAL GOVERNMENT'S FINANCIAL
CONDITION.
(a) Government Accountability Office.--Not later than 6 weeks after
the President's budget submission under section 1105(a) of title 31,
United States Code, or 6 weeks after the President submits his budget
review, the Government Accountability Office shall submit a report on
the financial condition of the Government, including the long-term
unfunded obligations.
(b) Definition of Long-Term Unfunded Obligations.--Section 3 of the
Congressional Budget Act of 1974 is amended by adding at the end the
following new paragraph:
``(12) The term `unfunded obligations' means the dollar sum
of the Total Net Position as displayed in the United States
Government Balance Sheets contained within the most recently
published Financial Report of the United States Government;
plus the 75-year actuarial balances, using the intermediate
open-group assumption, of Medicare's Hospital Insurance,
Supplementary Medical Insurance, and Prescription Drug programs
contained within the most recently published Annual Report of
the Boards of Trustees of the Federal Hospital Insurance and
Federal Supplementary Medical Insurance Trust Funds; plus the
75-year actuarial balance, using the intermediate open group
assumption, of the Old-Age Survivors and Disability Insurance
program contained within the most recently published Annual
Report of the Board of Trustees of the Federal Old-Age and
Survivors Insurance and Federal Disability Insurance Trust
Funds; plus the 75-year actuarial balance of the Black Lung
Disability Trust Fund (20-8144-0-7-601); plus the 75-year
actuarial balance of the Rail Industry Pension Fund (60-8011-0-
7-601) under section 255(g)(1)(B) of the Balanced Budget and
Emergency Deficit Control Act of 1985.''.
(c) President's Budget Submission.--Section 1105(a) of title 31,
United States Code, (as amended by section 8(b)) is further amended by
adding at the end the following:
``(41) a report on the financial condition of the
Government, including the long-term unfunded obligations.''.
SEC. 15. MEDICARE TRIGGER.
(a) Section 803.--Section 803 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (Public Law 108-173) is
amended--
(1) in subsection (b)--
(A) in paragraph (3)(A), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (3)(B), by striking the period at
the end and inserting a semicolon;
(C) in paragraph (3), by adding at the end the
following new subparagraphs:
``(C) the most recent report of the Medicare
Trustees (including any illustrative scenario prepared
by the Office of the Actuary);
``(D) an analysis by the Chief Actuary of Medicare
on the proposed legislation; and
``(E) the assessment of the Committee on the Budget
of the report of the Trustees and the analysis by the
Chief Actuary of Medicare on the proposed
legislation.''; and
(D) by adding at the end the following new
paragraph:
``(4) Effective certification.--The certification referred
to in paragraph (3) shall have no force or effect unless and
until all of the criteria set forth therein are inserted in the
Congressional Record.'';
(2) by amending subsection (c) to read as follows:
``(c) Fallback Procedure for Floor Consideration if the House Fails
To Vote on Final Passage by July 30.--After July 30 of any year during
which the President is required to submit proposed legislation to
Congress under section 1105(h) of title 31, United States Code, unless
the House of Representatives has voted on final passage of any medicare
funding legislation for which there is an affirmative certification
under subsection (b)(3)(A), then, after the expiration of 30 calendar
days (and concurrently 5 legislative days), the medicare funding
legislation shall be discharged from any committee to which it has been
referred.''; and
(3) by adding at the end the following new subsection:
``(h) Inapplicability of Procedures to Certain Legislation.--
Procedures set forth in this section shall not apply to any legislation
including--
``(1) changes in budget authority and outlays not within
function 570 (spending outside the medicare program); or
``(2) revenue increases other than those receipts from a
dedicated medicare financing source.''.
(b) Section 804.--Section 804 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (Public Law 108-173) is
amended--
(1) in subsection (d)(1), by striking ``, then any
Senator'' and all that follows and inserting ``, then the
medicare funding legislation measure shall be discharged from
the committee.''; and
(2) in subsection (e), by adding at the end the following
new sentence: ``The motion to proceed shall be nondebatable.''.
(c) Section 805.--(1) Subtitle A of title VIII of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003 (Public
Law 108-173) is amended by adding at the end the following new section:
``SEC. 805. DEDICATION OF SAVINGS.
``The chairman of the Committee on the Budget of the House of
Representatives or the Senate, as appropriate, shall adjust the
appropriate allocations, aggregates, and other levels to reflect the
budget impact achieved by legislation introduced pursuant to section
803(a) for purposes of the Congressional Budget Act of 1974, the
Balanced Budget Emergency and Deficit Control Act of 1985, the Rules of
the House of Representatives, or the Standing Rules of the Senate.''.
(2) The table of contents set forth in section 1(d) of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003 (Public
Law 108-173) is amended by inserting after the item relating to section
804 the following new item:
``Sec. 805. Dedication of savings.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Budget, and in addition to the Committees on Rules, Agriculture, Ways and Means, Energy and Commerce, and Education and the Workforce, 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, Agriculture, Ways and Means, Energy and Commerce, and Education and the Workforce, 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, Agriculture, Ways and Means, Energy and Commerce, and Education and the Workforce, 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, Agriculture, Ways and Means, Energy and Commerce, and Education and the Workforce, 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, Agriculture, Ways and Means, Energy and Commerce, and Education and the Workforce, 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 Committee on the Budget, and in addition to the Committees on Rules, Agriculture, Ways and Means, Energy and Commerce, and Education and the Workforce, 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 Subcommittee on Health.
Referred to the Subcommittee on Higher Education and Workforce Training.