SEC. 5. Effective Date. This order shall take effect upon enactment of the Omnibus Budget Reconciliation Act of 1993 [Aug. 10, 1993]. WILLIAM J. CLINTON. ACT REFERRED TO IN OTHER SECTIONS The Balanced Budget and Emergency Deficit Control Act of 1985 (see Short Title note above) is referred to in sections 665, 665e of this title; title 7 section 1446; title 12 section 2250; title 21 section 379g; title 22 sections 2295b, 3751, 5857; title 31 section 1105; title 38 section 113; title 39 section 2009a; title 42 section 11303; title 48 section 1469a-1. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 50 App. section 1989b-9. § 901. Enforcing discretionary spending limits (a) Fiscal years 1991-1998 enforcement (1) Sequestration Within 15 calendar days after Congress adjourns to end a session and on the same day as a sequestration (if any) under section 902 of this title and section 903 of this title, there shall be a sequestration to eliminate a budgetyear breach, if any, within any category. (2) Eliminating a breach Each non-exempt account within a category shall be reduced by a dollar amount calculated by multiplying the baseline level of sequestrable budgetary resources in that account at that time by the uniform percentage necessary to eliminate a breach within that category; except that the health programs set forth in section 906(e) of this title shall not be reduced by more than 2 percent and the uniform percent applicable to all other programs under this paragraph shall be increased (if necessary) to a level sufficient to eliminate that breach. If, within a category, the discretionary spending limits for both new budget authority and outlays are breached, the uniform percentage shall be calculated by (A) first, calculating the uniform percentage necessary to eliminate the breach in new budget authority, and (B) second, if any breach in outlays remains, increasing the uniform percentage to a level sufficient to eliminate that breach. (3) Military personnel If the President uses the authority to exempt any military personnel from sequestration under section 905(h) of this title, each account within subfunctional category 051 (other than those military personnel accounts for which the authority provided under section 905(h) of this title has been exercised) shall be further reduced by a dollar amount calculated by multiplying the enacted level of non-exempt budgetary resources in that account at that time by the uniform percentage necessary to offset the total dollar amount by which outlays are not reduced in military personnel accounts by reason of the use of such authority. (4) Part-year appropriations If, on the date specified in paragraph (1), there is in effect an Act making or continuing appropriations for part of a fiscal year for any budget account, then the dollar sequestration calculated for that account under paragraphs (2) and (3) shall be subtracted from (A) the annualized amount otherwise available by law in that account under that or a subsequent part-year appropriation; and (B) when a full-year appropriation for that account is enacted, from the amount otherwise provided by the full-year appropriation. (5) Look-back If, after June 30, an appropriation for the fiscal year in progress is enacted that causes a breach within a category for that year (after taking into account any sequestration of amounts within that category), the discretionary spending limits for that category for the next fiscal year shall be reduced by the amount or amounts of that breach. (6) Within-session sequestration If an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach within a category for that year (after taking into account any prior sequestration of amounts within that category), 15 days later there shall be a sequestration to eliminate that breach within that category following the procedures set forth in paragraphs (2) through (4). (7) OMB estimates As soon as practicable after Congress completes action on any discretionary appropriation, CBO, after consultation with the Committees on the Budget of the House of Representatives and the Senate, shall provide OMB with an estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation. Within 5 calendar days after the enactment of any discretionary appropriation, OMB shall transmit a report to the House of Representatives and to the Senate containing the CBO estimate of that legislation, an OMB estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation, and an explanation of any difference between the two estimates. For purposes of this paragraph, amounts provided by annual appropriations shall include any new budget authority and outlays for those years in accounts for which funding is provided in that legislation that result from previously enacted legislation. Those OMB estimates shall be made using current economic and technical assumptions. OMB shall use the OMB estimates transmitted to the Congress under this paragraph for the purposes of this subsection. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House and Senate Committees on the Budget, CBO, and OMB. (b) Adjustments to discretionary spending limits (1) When the President submits the budget under section 1105(a) of title 31 for budget year 1992, 1993, 1994, 1995, 1996, 1997, or 1998 (except as otherwise indicated), OMB shall calculate (in the order set forth below), and the budget shall include, adjustments to discretionary spending limits (and those limits as cumulatively adjusted) for the budget year and each outyear through 1998 to reflect the following: (A) Changes in concepts and definitions The adjustments produced by the amendments made by title XIII of the Omnibus Budget Reconciliation Act of 1990 or by any other changes in concepts and definitions shall equal the baseline levels of new budget authority and outlays using up-to-date concepts and definitions minus those levels using the concepts and definitions in effect before such changes. Such other changes in concepts and definitions may only be made in consultation with the Committees on Appropriations, the Budget, Government Operations, and Governmental Affairs of the House of Representatives and Senate. (B) Changes in inflation (i) For a budget submitted for budget year 1992, 1993, 1994, or 1995, the adjustments produced by changes in inflation shall equal the levels of discretionary new budget authority and outlays in the baseline (calculated using current estimates) subtracted from those levels in that baseline recalculated with the baseline inflators for the budget year only, multiplied by the inflation adjustment factor computed under clause (ii). (ii) For a budget year the inflation adjustment factor shall equal the ratio between the level of year-over-year inflation measured for the fiscal year most recently completed and the applicable estimated level for that year set forth below: For 1990, 1.041 For 1991, 1.052 For 1992, 1.041 For 1993, 1.033 Inflation shall be measured by the average of the estimated gross national product implicit price deflator index for a fiscal year divided by the average index for the prior fiscal year. (iii) For a budget submitted for budget year 1996, 1997, or 1998, the adjustments shall be those necessary to reflect changes in inflation estimates since those of March 31, 1993, set forth on page 46 of House Conference Report 103-48. (C) Credit reestimates For a budget submitted for fiscal year 1993 or 1994, the adjustments produced by reestimates to costs of Federal credit programs shall be, for any such program, a current estimate of new budget authority and outlays associated with a baseline projection of the prior year's gross loan level for that program minus the baseline projection of the prior year's new budget authority and associated outlays for that program. (2) When OMB submits a sequestration report under section 904(g) or (h) of this title for fiscal year 1991, 1992, 1993, 1994, 1995, 1996, 1997, or 1998 (except as otherwise indicated), OMB shall calculate (in the order set forth below), and the sequestration report, and subsequent budgets submitted by the President under section 1105(a) of title 31, shall include, adjustments to discretionary spending limits (and those limits as adjusted) for the fiscal year and each succeeding year through 1998, as follows: (A) IRS funding To the extent that appropriations are enacted that provide additional new budget authority or result in additional outlays (as compared with the CBO baseline constructed in June 1990) for the Internal Revenue Service compliance initiative in any fiscal year, the adjustments for that year shall be those amounts, but shall not exceed the amounts set forth below (i) for fiscal year 1991, $191,000,000 in new budget authority and $183,000,000 in outlays; (ii) for fiscal year 1992, $172,000,000 in new budget authority and $169,000,000 in outlays; (iii) for fiscal year 1993, $183,000,000 in new budget authority and $179,000,000 in outlays; (iv) for fiscal year 1994, $187,000,000 in new budget authority and $183,000,000 in outlays; and (v) for fiscal year 1995, $188,000,000 in new budget authority and $184,000,000 in outlays; and the prior-year outlays resulting from these appropriations of budget authority. (B) Debt forgiveness If, in calendar year 1990 or 1991, an appropriation is enacted that forgives the Arab Republic of Egypt's foreign military sales indebtedness to the United States and any part of the Government of Poland's indebtedness to the United States, the adjustment shall be the estimated costs (in new budget authority and outlays, in all years) of that forgiveness. (C) IMF funding If, in fiscal year 1991, 1992, 1993, 1994, or 1995 an appropriation is enacted to provide to the International Monetary Fund the dollar equivalent, in terms of Special Drawing Rights, of the increase in the United States quota as part of the International Monetary Fund Ninth General Review of Quotas, the adjustment shall be the amount provided by that appropriation. (D) Emergency appropriations (i) If, for any fiscal year, appropriations for discretionary accounts are enacted that the President designates as emergency requirements and that the Congress so designates in statute, the adjustment shall be the total of such appropriations in discretionary accounts designated as emergency requirements and the outlays flowing in all years from such appropriations. (ii) The costs for operation Desert Shield are to be treated as emergency funding requirements not subject to the defense spending limits. Funding for Desert Shield will be provided through the normal legislative process. Desert Shield costs should be accommodated through Allied burden-sharing, subsequent appropriation Acts, and if the President so chooses, through offsets within other defense accounts. Emergency Desert Shield costs mean those incremental costs associated with the increase in operations in the Middle East and do not include costs that would be experienced by the Department of Defense as part of its normal operations absent Operation Desert Shield. (E) Special allowance for discretionary new budget authority (i) For each of fiscal years 1992 and 1993, the adjustment for the domestic category in each year shall be an amount equal to 0.1 percent of the sum of the adjusted discretionary spending limits on new budget authority for all categories for fiscal years 1991, 1992, and 1993 (cumulatively), together with outlays associated therewith (calculated at the composite outlay rate for the domestic category); (ii) for each of fiscal years 1992 and 1993, the adjustment for the international category in each year shall be an amount equal to 0.079 percent of the sum of the adjusted discretionary spending limits on new budget authority for all categories for fiscal years 1991, 1992, and 1993 (cumulatively), together with outlays associated therewith (calculated at the composite outlay rate for the international category); (iii) if, for fiscal years 1992 and 1993, the amount of new budget authority provided in appropriation Acts exceeds the discretionary spending limit on new budget authority for any category due to technical estimates made by the Director of the Office of Management and Budget, the adjustment is the amount of the excess, but not to exceed an amount (for 1992 and 1993 together) equal to 0.042 percent of the sum of the adjusted discretionary limits on new budget authority for all categories for fiscal years 1991, 1992, and 1993 (cumulatively); and new (iv) if, for fiscal years 1994, 1995, 1996, 1997, and 1998, the amount of new budget authority provided in appropriation Acts exceeds the discretionary spending limit on budget authority due to technical estimates made by the director1 of the Office of Management and Budget, the adjustment is the amount of the excess, but not to exceed an amount (for any one fiscal year) equal to 0.1 percent of the adjusted descretionary 2 spend 1 So in original. Probably should be capitalized. *So in original. Probably should be “discretionary". ing limit on new budget authority for that fiscal year. (F) Special outlay allowance If in any fiscal year outlays for a category exceed the discretionary spending limit for that category but new budget authority does not exceed its limit for that category (after application of the first step of a sequestration described in subsection (a)(2) of this section, if necessary), the adjustment in outlays is the amount of the excess, but not to exceed $2,500,000,000 in the defense category, $1,500,000,000 in the international category, or $2,500,000,000 in the domestic category (as applicable) in fiscal year 1991, 1992, or 1993, and not to exceed $6,500,000,000 in fiscal year 1994 or 1995 less any of the outlay adjustments made under subparagraph (E) for a category for a fiscal year, and not to exceed 0.5 percent of the adjusted descretionary 2 spending limit on outlays for the fiscal year in fiscal year 1996, 1997, or 1998. (G) Net guarantee costs The net costs for fiscal year 1994 of the appropriation made under section 2186 of title 22 are not subject to the discretionary spending limits or the Appropriations Committee's Foreign Operations Subcommittee's [section] 602(b) [2 U.S.C. 665a(b)] allocation in fiscal year 1994. (As amended Pub. L. 101-508, title XIII, § 13101(a), (e)(2), Nov. 5, 1990, 104 Stat. 1388-577, 1388-593; Pub. L. 103-66, title XIV, § 14002(c)(1), Aug. 10, 1993, 107 Stat. 683; Pub. L. 103-87, title V, § 571, Sept. 30, 1993, 107 Stat. 971.) TERMINATION OF SECTION For termination of section by section 14002(c)(3)(A) of Pub. L. 103-66, see Effective and Termination Dates note set out under section 900 of this title. REFERENCES IN TEXT The Omnibus Budget Reconciliation Act of 1990, referred to in subsec. (b)(1)(A), is Pub. L. 101-508, Nov. 5, 1990, 104 Stat. 1388. Title XIII of the Act is known as the Budget Enforcement Act of 1990. For complete classification of title XIII to the Code, see Short Title of 1990 Amendment note set out under section 900 of this title and Tables. CODIFICATION Pub. L. 101-508, § 13101(e)(2), redesignated former subsec. (a)(6)(I) of this section as section 257(e) of Pub. L. 99-177, which is classified to section 907(e) of this title. AMENDMENTS 1993-Subsec. (a). Pub. L. 103-66, § 14002(c)(1)(A), substituted "1998" for "1995" in heading. Subsec. (b)(1). Pub. L. 103–66, § 14002(c)(1)(B)(i), in introductory provisions, substituted "1995, 1996, 1997, or 1998" for "or 1995” and “outyear through 1998” for "outyear through 1995”. Subsec. (b)(1)(B)(iii). Pub. L. 103-66, § 14002(c)(1)(B)(ii), added cl. (iii). Subsec. (b)(2). Pub. L. 103–66, § 14002(c)(1)(B)(iii), in introductory provisions, substituted "1995, 1996, 1997, or 1998" for "or 1995" and "year through 1998" for "year through 1995". Subsec. (b)(2)(F). Pub. L. 103–66, § 14002(c)(1)(B)(vi), inserted before period at end ", and not to exceed 0.5 percent of the adjusted descretionary [sic] spending limit on outlays for the fiscal year in fiscal year 1996, 1997, or 1998". Subsec. (b)(2)(G). Pub. L. 103-87 added subpar. (G). 1990-Pub. L. 101-508, § 13101(a), amended section generally, substituting subsecs. (a) and (b) relating to enforcement of discretionary spending limits for former subsecs. (a) to (e) relating to reporting of excess deficits. Subsec. (a)(6)(I). Pub. L. 101-508, § 13101(e)(2), redesignated subsec. (a)(6)(I) of this section as section 907(e) of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 665, 665b, 665e, 900, 902, 903, 904, 905, 908, 922 of this title; title 16 section 556c; title 38 section 113; title 39 section 2009a; title 42 section 5203; title 43 section 1474a. § 902. Enforcing pay-as-you-go (a) Fiscal years 1992-1998 enforcement The purpose of this section is to assure that any legislation (enacted after November 5, 1990) affecting direct spending or receipts that increases the deficit in any fiscal year covered by this Act will trigger an offsetting sequestration. (b) Sequestration; look-back Within 15 calendar days after Congress adjourns to end a session (other than of the One Hundred First Congress) and on the same day as a sequestration (if any) under section 901 of this title and section 903 of this title, there shall be a sequestration to offset the amount of any net deficit increase in that fiscal year and the prior fiscal year caused by all direct spending and receipts legislation enacted after November 5, 1990 (after adjusting for any prior sequestration as provided by paragraph (2)). OMB shall calculate the amount of deficit increase, if any, in those fiscal years by adding (1) all applicable estimates of direct spending and receipts legislation transmitted under subsection (d) of this section applicable to those fiscal years, other than any amounts included in such estimates resulting from (A) full funding of, and continuation of, the deposit insurance guarantee commitment in effect on November 5, 1990, and (B) emergency provisions as designated under subsection (e) of this section; and (2) the estimated amount of savings in direct spending programs applicable to those fiscal years resulting from the prior year's sequestration under this section or section 903 of this title, if any (except for any amounts sequestered as a result of a net deficit increase in the fiscal year immediately preceding the prior fiscal year), as published in OMB's end-of-session sequestration report for that prior year. (c) Eliminating a deficit increase (1) The amount required to be sequestered in a fiscal year under subsection (b) of this section shall be obtained from non-exempt direct spending accounts from actions taken in the following order: (A) First All reductions in automatic spending increases specified in section 906(a) of this title shall be made. (B) Second If additional reductions in direct spending accounts are required to be made, the maximum reductions permissible under sections 906(b) of this title (guaranteed student loans) and 906(c) of this title (foster care and adoption assistance) shall be made. (C) Third (i) If additional reductions in direct spending accounts are required to be made, each remaining non-exempt direct spending account shall be reduced by the uniform percentage necessary to make the reductions in direct spending required by paragraph (1); except that the medicare programs specified in section 906(d) of this title shall not be reduced by more than 4 percent and the uniform percentage applicable to all other direct spending programs under this paragraph shall be increased (if necessary) to a level sufficient to achieve the required reduction in direct spending. (ii) For purposes of determining reductions under clause (i), outlay reductions (as a result of sequestration of Commodity Credit Corporation commodity price support contracts in the fiscal year of a sequestration) that would occur in the following fiscal year shall be credited as outlay reductions in the fiscal year of the sequestration. (2) For purposes of this subsection, accounts shall be assumed to be at the level in the baseline. (d) OMB estimates As soon as practicable after Congress completes action on any direct spending or receipts legislation enacted after November 5, 1990, after consultation with the Committees on the Budget of the House of Representatives and the Senate, CBO shall provide OMB with an estimate of the amount of change in outlays or receipts, as the case may be, in each fiscal year through fiscal year 1998 resulting from that legislation. Within 5 calendar days after the enactment of any direct spending or receipts legislation enacted after November 5, 1990, OMB shall transmit a report to the House of Representatives and to the Senate containing such CBO estimate of that legislation, an OMB estimate of the amount of change in outlays or receipts, as the case may be, in each fiscal year through fiscal year 1998 resulting from that legislation, and an explanation of any difference between the two estimates. Those OMB estimates shall be made using current economic and technical assumptions. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House and Senate Committees on the Budget, CBO, and OMB. (e) Emergency legislation If, for any fiscal year from 1991 through 1998, a provision of direct spending or receipts legislation is enacted that the President designates as an emergency requirement and that the Congress so designates in statute, the amounts of new budget authority, outlays, and receipts in all fiscal years through 1995 1 resulting from that provision shall be designated as an emergency requirement in the reports required under subsection (d) of this section. (As amended Pub. L. 101-508, title XIII, § 13101(a), Nov. 5, 1990, 104 Stat. 1388-581; Pub. L. 103-66, title XIV, § 14003(a), Aug. 10, 1993, 107 Stat. 684.) TERMINATION OF SECTION For termination of section by section 14002(c)(3)(A) of Pub. L. 103-66, see Effective and Termination Dates note set out under section 900 of this title. REFERENCES IN TEXT This Act, referred to in subsec. (a), means Pub. L. 99-177, Dec. 12, 1985, 99 Stat. 1037, as amended, which enacted this chapter and sections 654 to 656 of this title, amended sections 602, 622, 631 to 642, and 651 to 653 of this title, sections 1104 to 1106, 1109, and 3101 of Title 31, Money and Finance, and section 911 of Title 42, The Public Health and Welfare, repealed section 661 of this title, enacted provisions set out as notes under section 900 of this title and section 911 of Title 42, and amended provisions set out as a note under section 621 of this title. For complete classification of this Act to the Code, see Tables. CODIFICATION November 5, 1990, referred to in subsecs. (a), (b), and (d), was in the original "the date of enactment of this section", which was translated as meaning the date of enactment of Pub. L. 101-508, which amended this section generally, to reflect the probable intent of Congress. AMENDMENTS 1993-Subsec. (a). Pub. L. 103-66, § 14003(a)(1), which directed the substitution of "Fiscal year 1992-1998 enforcement" for "Fiscal year 1992-1995 enforcement" in heading, was executed by substituting "Fiscal years 1992-1998 enforcement" for "Fiscal years 1992-1995 enforcement", to reflect the probable intent of Congress. Subsec. (d). Pub. L. 103-66, § 14003(a)(2), substituted "through fiscal year 1998" for "through fiscal year 1995" in two places. Subsec. (e). Pub. L. 103-66, § 14003(a)(3), substituted "for any fiscal year from 1991 through 1998" for "for fiscal year 1991, 1992, 1993, 1994, or 1995". 1990-Pub. L. 101-508 amended section generally, substituting subsecs. (a) to (e) relating to enforcement of pay-as-you-go for former subsecs. (a) to (g) relating to Presidential order. REDUCTION OF DIRECT SPENDING AND RECEIPTS Section 14003(c) of Pub. L. 103-66 provided that: "Upon enactment of this Act (Aug. 10, 19931, the director of the Office of Management and Budget shall reduce the balances of direct spending and receipts legislation applicable to each fiscal year under section 1 So in original. Probably should be "1998". 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] by an amount equal to the net deficit reduction achieved through the enactment in this Act [see Tables for classification] of direct spending and receipts legislation for that year." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 665, 665e, 900, 901, 903, 904, 906, 907d, 908, 922 of this title; title 7 section 1446; title 16 sections 3834, 3837d, 3839c; title 31 section 1341; title 39 section 2009a. § 903. Enforcing deficit targets (a) Sequestration Within 15 calendar days after Congress adjourns to end a session (other than of the One Hundred First Congress) and on the same day as a sequestration (if any) under section 901 of this title and section 902 of this title, but after any sequestration required by section 901 of this title (enforcing discretionary spending limits) or section 902 of this title (enforcing pay-as-you-go), there shall be a sequestration to eliminate the excess deficit (if any remains) if it exceeds the margin. (b) Excess deficit; margin The excess deficit is, if greater than zero, the estimated deficit for the budget year, minus (1) the maximum deficit amount for that year; (2) the amounts for that year designated as emergency direct spending or receipts legislation under section 902(e) of this title; and (3) for any fiscal year in which there is not a full adjustment for technical and economic reestimates, the deposit insurance reestimate for that year, if any, calculated under subsection (h) of this section. The "margin" for fiscal year 1992 or 1993 is zero and for fiscal year 1994 or 1995 is $15,000,000,000. (c) Dividing sequestration To eliminate the excess deficit in a budget year, half of the required outlay reductions shall be obtained from non-exempt defense accounts (accounts designated as function 050 in the President's fiscal year 1991 budget submission) and half from non-exempt, non-defense accounts (all other non-exempt accounts). (d) Defense Each non-exempt defense account shall be reduced by a dollar amount calculated by multiplying the level of sequestrable budgetary resources in that account at that time by the uniform percentage necessary to carry out subsection (c) of this section, except that, if any military personnel are exempt, adjustments shall be made under the procedure set forth in section 901(a)(3) of this title. (e) Non-defense Actions to reduce non-defense accounts shall be taken in the following order: (1) First All reductions in automatic spending increases under section 906(a) of this title shall be made. |