TITLE 2-THE CONGRESS Pub. L. 101-239, title VI, § 6101, Dec. 19, 1989, 103 Stat. 2168, provided that: "Notwithstanding any other provision of law (including any other provision of this Act, other than section 6201 [set out below]), the reductions in the amount of payments required under title XVIII of the Social Security Act [42 U.S.C. 1395 et seq.] made by the final sequester order issued by the President on October 16, 1989, pursuant to section 252(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902(b)] shall continue to be effective (as provided by sections 252(a)(4)(B) and 256(d)(2) of such Act [2 U.S.C. 902(a)(4)(B), 906(d)(2)]) through March 31, 1990, with respect to payments for items and services under part B of such title [42 U.S.C. 1395j et seq.]." Pub. L. 101-239, title VI, § 6201, Dec. 19, 1989, 103 Stat. 2225, provided that: "Notwithstanding any other provision of law (including section 11002 [set out below] or any other provision of this Act), the reductions in the amount of payments required under title XVIII of the Social Security Act [42 U.S.C. 1395 et seq.] made by the final sequester order issued by the President on October 16, 1989 [set out below], pursuant to section 252(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902(b)] shall continue to be effective (as provided by sections 252(a)(4)(B) and 256(d)(2) of such Act [2 U.S.C. 902(a)(4)(B), 906(d)(2)]) through December 31, 1989, with respect to payments under section 1833(a)(1)(A) or 1876 of the Social Security Act [42 U.S.C. 1395(a)(1)(A), 1395mm), section 402 of the Social Security Amendments of 1967 [section 402 of Pub. L. 90-248, enacting 42 U.S.C. 1395b-1, and amending 42 U.S.C. 1395], or section 222 of the Social Security Amendments of 1972 [section 222 of Pub. L. 92-603, amending 42 U.S.C. 1395b-1 and enacting provisions set out as a note under 42 U.S.C. 1395b-1]. Each such payment made during fiscal year 1990 after such date shall be increased by 1.42 percent above what it would otherwise be under this Act." Pub. L. 101-239, title XI, § 11002, Dec. 19, 1989, 103 Stat. 2490, provided that: "(a) ORDER RESCINDED.-(1) Upon the issuance of a new final order by the President under subsection (b)(4) [set out below], the order issued by the President on October 16, 1989 [set out below], pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is rescinded. "(2) Except as otherwise provided in sections 6001, 6101, and 6201 [set out above], and subject to subsection (b), any action taken to implement the order issued by the President on October 16, 1989, shall be reversed, and any sequesterable budgetary resource that has been reduced or sequestered by such order is restored, revived, or released and shall be available to the same extent and for the same purposes as if an order had not been issued. "(3) For purposes of section[s] 702(d) and 1101(c) of the Ethics Reform Act of 1989 [Pub. L. 101-194, 5 U.S.C. 5305 note, 2 U.S.C. 31-1 note], the order issued by the President on October 16, 1989, pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is deemed to be rescinded on January 31, 1990. "(b) ADJUSTED REDUCTION. "(1) Before the close of the fifteenth calendar day beginning after the date of enactment of this Act [Dec. 19, 1989], the Director of OMB shall issue a revised report using the exact budget baseline set forth in the report of October 16, 1989 [set out below), and following the requirements, specifications, definitions, and calculations required by the Balanced Budget and Emergency Deficit Control Act of 1985 [Pub. L. 99-177, title II, see Short Title note set out under 2 U.S.C. 901] for the final report issued under section 251(c)(2) [2 U.S.C. 901(c)(2)] for fiscal year 1990, except that the aggregate outlay reduction to be achieved shall be an amount equal to $16.1 billion multiplied by 130 divided by 365. Calculations made to carry out the preceding sentence Page 102 shall take into account the reductions and cancellations achieved by paragraphs (2) and (3) and shall not be affected by subsection (d). "(2) Notwithstanding any provision of law other than this paragraph, the reductions and cancellations in the student loan programs described in section 256(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 906(c)] achieved by the order issued by the President on October 16, 1989, shall remain in effect through December 31, 1989, and no reductions or cancellations in such programs shall be made by the order issued under paragraph (4). "(3) Notwithstanding any provision of law other than this paragraph, any automatic spending increase suspended or cancelled by the order issued by the President on October 16, 1989, shall be paid at a rate that is 130/365ths less than the rate that would have been paid under the laws providing for such automatic spending increase. "(4) On the date that the Director submits a revised report to the President under paragraph (1) for fiscal year 1990, the President shall issue a new final order to make all of the reductions and cancellations specified in such report in conformity with section 252(a)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902(a)(2)]. Such order shall be deemed to have become effective on October 16, 1989. "(c) COMPLIANCE REPORT BY COMPTROLLER GENERAL.— Before the close of the thirtieth day beginning after the date the President issues a new final order under subsection (b)(4), the Comptroller General shall submit to the Congress and the President a compliance report setting forth the information required under section 253 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 903] with respect to such order. "(d) No DOUBLE REDUCTION IN MEDICARE.-With respect to items and services described in section 6001, 6101, or 6201 [set out above] for periods for which reductions are made pursuant to the respective sections, no reduction shall be made under subsection (b)." New Final Order of the President of the United States, Dec. 27, 1989, 54 F.R. 53469, provided: By the authority vested in me as President by the statutes of the United States of America, including section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177) [2 U.S.C. 902], as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100-119) (hereafter referred to as "the Act"), and section 11002 of the Omnibus [Budget] Reconciliation Act of 1989 (Public Law 101-239) ("OBRA”) [set out above], I hereby order that the following actions be taken to implement the sequestrations and reductions determined by the Director of the Office of Management and Budget as set forth in his report dated December 27, 1989, under section 251 of the Act [2 U.S.C. 9011 and section 11002 of the OBRA: (1) Each automatic spending increase that would, but for the provisions of the Act, take effect during fiscal year 1990 is permanently sequestered or reduced as provided in section 252 of the Act and section 11002 of OBRA. (2) The following are sequestered as provided in section 252 of the Act and section 11002 of OBRA: new budget authority; unobligated balances; new loan guarantee commitments or limitations; new direct loan obligations, commitments, or limitations; spending authority as defined in section 401(c)(2) of the Congressional Budget Act of 1974, as amended [2 U.S.C. 651(c)(2)]; and obligation limitations. (3) For accounts making payments otherwise required by substantive law, the head of each depart ment or agency is directed to modify the calculation of each such payment to the extent necessary to reduce the estimate of total required payments for the fiscal year by the amount specified by the Director of the Office of Management and Budget in his report of December 27, 1989. (4) For accounts making commitments for guaranteed loans or obligations for direct loans as authorized by substantive law, the head of each department or agency is directed to reduce the level of such commitments or obligations to the extent necessary to conform to the limitations established by the Act and by OBRA and specified by the Director of the Office of Management and Budget in his report of December 27, 1989. All reductions and sequestrations shall be made in strict accordance with the specifications of the December 27th report of the Director of the Office of Management and Budget and the requirements of section 252(b) of the Act and section 11002 of OBRA. This order shall be deemed to have become effective on October 16, 1989, as provided in section 11002 of OBRA. This order shall be published [in the] Federal Register. GEORGE BUSH. Final Order of the President of the United States, Oct. 16, 1989, 54 F.R. 42795, which provided emergency deficit control measures for fiscal year 1990, was rescinded by section 11002(a) of Pub. L. 101-239, set out above, upon issuance of New Final Order of the President of the United States, Dec. 27, 1989, 54 F.R. 53469, set out above. Initial Order of the President of the United States, Aug. 25, 1989, 54 F.R. 35627, which provided emergency deficit control measures for fiscal year 1990, was superseded by Final Order of the President, Oct. 16, 1989, 54 F.R. 42795. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 901, 903, 906, 9078, 907b, 907c, 907d, 922 of this title; title 21 section 379g. § 905. Exempt programs and activities (a) Social security benefits and tier I railroad retirement benefits Benefits payable under the old-age, survivors, and disability insurance program established under title II of the Social Security Act [42 U.S.C. 401 et seq.], and benefits payable under section 231b(a), 231b(f)(3), 231c(a), or 231c(f) of title 45, shall be exempt from reduction under any order issued under this subchapter. (b) Veterans programs The following programs shall be exempt from reduction under any order issued under this subchapter: National Service Life Insurance Fund (368132-0-7-701); Service-Disabled Veterans Insurance Fund (36-4012-0-3-701); Veterans Special Life Insurance Fund (368455-0-8-701); Veterans Reopened Insurance Fund (364010-0-3-701); United States Government Life Insurance Fund (36-8150-0-7-701); Veterans Insurance and Indemnity (36-01200-1-701); Special Therapeutic and Rehabilitation Activities Fund (36-4048-0-3-703); Veterans' Canteen Service Revolving Fund (36-4014-0-3-705); Benefits under chapter 21 of title 38 relating to specially adapted housing and mort gage-protection life insurance for certain veterans with service-connected disabilities (360137-0-1-702); Benefits under section 2307 of title 38 relating to burial benefits for veterans who die as a result of service-connected disability (360155-0-1-701); Benefits under chapter 39 of title 38 relating to automobiles and adaptive equipment for certain disabled veterans and members of the Armed Forces (36-0137-0-1-702); Veterans' compensation (36-0153-0-1-701); and Veterans' pensions (36-0154-0-1-701). [See main edition for text of (c) and (d)] (e) Non-defense unobligated balances Unobligated balances of budget authority carried over from prior fiscal years, except balances in the defense category, shall be exempt from reduction under any order issued under this subchapter. [See main edition for text of ( (g) Other programs and activities (1)(A) The following budget accounts and activities shall be exempt from reduction under any order issued under this subchapter: Activities resulting from private donations, bequests, or voluntary contributions to the Government; Administration of Territories, Northern Mariana Islands Covenant grants (14-04120-1-806); Thrift Savings Fund (26-8141-0-7-602); Alaska Power Administration, Operations and maintenance (89-0304-0-1-271); Appropriations for the District of Columbia (to the extent they are appropriations of locally raised funds); Bonneville Power Administration fund and borrowing authority established pursuant to section 13 of Public Law 93-454 (1974), as amended [16 U.S.C. 838k] (894045-0-3-271); Bureau of Indian Affairs, miscellaneous payments to Indians (14-2303-0-1-452); Bureau of Indian Affairs miscellaneous trust funds, tribal trust funds (14-9973-0-7999); Claims, defense (97-0102-0-1-051); Claims, judgments, and relief acts (201895-0-1-806); Coinage profit fund (20-5811-0-2-803); Compensation of the President (11-0001-0 1-802); Postal service fund (18-4020-0-3-372); Resolution Funding Corporation; Resolution Trust Corporation; Salaries of Article III judges; Farm Credit System Financial Assistance Corporation, interest payments (20-1850-01-351); Federal Deposit Insurance Corporation; Federal Deposit Insurance Corporation, Bank Insurance Fund; Federal Deposit Insurance Corporation, FSLIC Resolution Fund; Federal Deposit Insurance Corporation, Savings Association Insurance Fund; Federal Housing Finance Board; Federal payment to the railroad retirement account (60-0113-0-1-601); Foreign military sales trust fund (11-82420-7-155); Health professions graduate student loan insurance fund (Health Education Assistance Loan Program) (75-4305-0-3-553); Higher education facilities loans and insurance (91-0240-01-502); Internal Revenue Collections for Puerto Rico (20-5737-0-2-852); Intragovernmental funds, including those from which the outlays are derived primarily from resources paid in from other government accounts, except to the extent such funds are augmented by direct appropriations for the fiscal year during which an order is in effect; Panama Canal Commission, operating expenses (95-5190-0-2-403), and Panama Canal Commission, capital outlay (95-5190-0-2403); Medical facilities guarantee and loan fund, Federal interest subsidies for medical facilities (75-4430-03-551); National Credit Union Administration; National Credit Union Administration, central liquidity facility; National Credit Union Administration, credit union share insurance fund; Payment of Vietnam and USS Pueblo prisoner-of-war claims (15-0104-0-1-153); Payment to civil service retirement and disability fund (24-0200-0-1-805); Payment to Judiciary Trust Funds (100941-0-1-752); Payments to copyright owners (03-5175-02-376); Payments to health care trust funds (750580-0-1-572); Payments to military retirement fund (970040-0-1-054); Compact of Free Association, economic assistance pursuant to Public Law 99-658 (14-0415-0-1-806); Payments to social security trust funds (75-0404-0-1-571); Payments to state and local government fiscal assistance trust fund (20-2111-0-1851); Payments to the foreign service retirement and disability fund (11-1036-0-1-153 and 19-0540-0-1-153); Payments to trust funds from excise taxes or other receipts properly creditable to such trust funds; Payments to the United States territories, fiscal assistance (14-0418-0-1-852); Payments to widows and heirs of deceased Members of Congress (00-0215-0-1-801); Soldiers and Airmen's Home, payment of claims (84-8930-0-7-705); Southeastern Power Administration, Operations and maintenance (89-0302-0-1-271); Southwestern Power Administration, Operations and maintenance (89-0303-0-1-271); Tennessee Valley Authority fund, except non-power programs and activities (64-41100-3-999); United States Enrichment Corporation; Washington Metropolitan Area Transit Authority, interest payments (46-0300-0-1401); Western Area Power Administration, Construction, rehabilitation, operations, and maintenance (89-5068-0-2-271); and Western Area Power Administration, Colorado River basins power marketing fund (89-4452-0-3-271). (B) The following budget accounts and activities shall be exempt from reduction under any order issued under this subchapter: Black lung benefits (20-8144-0-7-601); Central Intelligence Agency retirement and disability system fund (56-3400-0-1-054); Civil service retirement and disability fund (24-8135-0-7-602); Comptrollers general retirement system (05-0107-0-1-801); Foreign service retirement and disability fund (19-8186-0-7-602); Judicial survivors' annuities fund (108110-0-7-602); Judicial Officers' Retirement Fund (108122-0-7-602); Court of Federal Claims Judges' Retirement Fund (10-8124-0-7-602); Longshoremen's and harborworkers' compensation benefits (16-9971-0-7-601); Military retirement fund (97-8097-0-7602); National Oceanic and Atmospheric Administration retirement (13-1450-0-1-306); Pensions for former Presidents (47-0105-01-802); Railroad retirement tier II (60-8011-0-7601); Railroad supplemental annuity pension fund (60-8012-0-7-602); Retired pay, Coast Guard (69-0241-0-1403); Retirement pay and medical benefits for commissioned officers, Public Health Serv ice (75-0379-0-1-551); Special benefits, Federal Employees' Compensation Act (16-1521-0-1-600); Special benefits for disabled coal miners (75-0409-0-1-601); and Tax Court judges survivors annuity fund (23-8115-0-7-602). (2) Prior legal obligations of the Government in the following budget accounts and activities shall be exempt from any order issued under this subchapter: Agency for International Development, Housing, and other credit guarantee programs (72-4340-0-3-151); Agricultural credit insurance fund (124140-0-3-351); Biomass energy development (20-0114-0-1271); Check forgery insurance fund (20-4109-03-803); Community development grant loan guarantees (86-0162-0-1-451); Credit union share insurance fund (254468-0-3-371); Economic development revolving fund (13-4406-0-3-452); Employees life insurance fund (24-8424-08-602); Energy security reserve (Synthetic Fuels Corporation) (20-0112-0-1-271); Export-Import Bank of the United States, Limitation of program activity (83-4027-0-3155); Federal Aviation Administration, Aviation insurance revolving fund (69-4120-0-3-402); Federal Crop Insurance Corporation fund (12-4085-0-3-351); Federal Deposit Insurance Corporation (51-8419-0-8-371); Federal Emergency Management Agency, National flood insurance fund (58-4236-0-3453); Federal Emergency Management Agency, National insurance development fund (584235-0-3-451); Federal Housing Administration fund (864070-0-3-371); Federal ship financing fund (69-4301-0-3403); Federal ship financing fund, fishing vessels (13-4417-0-3-376); Geothermal resources development fund (89-0206-0-1-271); Government National Mortgage Association, Guarantees of mortgage-backed securities (86-4238-0-3-371); Health education loans (75-4307-0-3-553); Homeowners assistance fund, Defense (974090-0-3-051); Indian loan guarantee and insurance fund (14-4410-0-3-452); International Trade Administration, Operations and administration (13-1250-0-1376); Low-rent public housing, Loans and other expenses (86-4098-0-3-604); Maritime Administration, War-risk insurance revolving fund (69-4302-0-3-403); Overseas Private Investment Corporation (71-4030-0-3-151); Pension Benefit Guaranty Corporation fund (16-4204-0-3-601); Rail service assistance (69-0122-0-1-401); Railroad rehabilitation and improvement financing fund (69-4411-0-3-401); Rural development insurance fund (124155-0-3-452); Rural electric and telephone revolving fund (12-4230-8-3-271); Rural housing insurance fund (12-4141-03-371); Small Business Administration, Business loan and investment fund (73-4154-0-3-376); Small Business Administration, Lease guarantees revolving fund (73-4157-0-3-376); Small Business Administration, Pollution control equipment contract guarantee revolving fund (73-4147-0-3-376); Small Business Administration, Surety bond guarantees revolving fund (73-4156-03-376); Department of Veterans Affairs, Loan guaranty revolving fund (36-4025-0-3-704); and Department of Veterans Affairs, Servicemen's group life insurance fund (36-4009-03-701). (h) 2 Low-income programs The following programs shall be exempt from reduction under any order issued under this subchapter: Aid to families with dependent children (750412-0-1-609); Child nutrition (12-3539-0-1-605); Commodity supplemental food program (123512-0-1-605); Food stamp programs (12-3505-0-1-605 and 12-3550-0-1-605); Grants to States for Medicaid (75-0512-0-1551); Supplemental Security Income Program (75-0406-0-1-609); and Women, infants, and children program (123510-0-1-605). (i) Identification of programs For purposes of subsections (g) and (h) of this section, programs are identified by the designated budget account identification code numbers set forth in the Budget of the United States Government, 1986-Appendix. 3 (h) Optional exemption of military personnel (1) 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) The President may not use the authority provided by paragraph (1) unless he notifies the Congress of the manner in which such authority will be exercised on or before the initial snapshot date for the budget year. (As amended Pub. L. 101-73, title VII, § 743(a), (c), Aug. 9, 1989, 103 Stat. 437; Pub. L. 101-220, § 8, Dec. 12, 1989, 103 Stat. 1881; Pub. L. 101-508, title XIII, § 13101(c), Nov. 5, 1990, 104 Stat. 1388-589; Pub. L. 102-54, § 13(a), June 13, 1991, 105 Stat. 274; Pub. L. 102-83, § 5(c)(2), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-486, title IX, § 902(d), Oct. 24, 1992, 106 Stat. 2944; Pub. L. 102-572, title VI, § 601, Oct. 29, 1992, 106 Stat. 4514.) 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. "Another subsec. (h) appears after subsec. (1). So in original. Probably should be "(j)". REFERENCES IN TEXT Section 907 of this title, referred to in subsec. (f), was amended generally by Pub. L. 101-508, title XIII, § 13101(e)(1), Nov. 5, 1990, 104 Stat. 1388-591, and, as so amended, does not contain a par. (1). Section 901 of this title, referred to in subsec. (f), was amended generally by Pub. L. 101-508, title XIII, § 13101(a), Nov. 5, 1990, 104 Stat. 1388-577, and, as so amended, does not contain a subsec. (a)(3)(C). Section 906(b) of this title, referred to in subsec. (f), was redesignated section 906(h) of this title by Pub. L. 101-508, title XIII, § 13101(d)(2), Nov. 5, 1990, 104 Stat. 1388-589. AMENDMENTS 1992-Subsec. (g)(1)(A). Pub. L. 102-572, § 601(b), inserted item relating to payment to Judiciary Trust Funds. Pub. L. 102-486 inserted item relating to United States Enrichment Corporation. Subsec. (g)(1)(B). Pub. L. 102-572, § 601(a), inserted items relating to Judicial Officers' Retirement Fund and Court of Federal Claims Judges' Retirement Fund. 1991-Subsec. (b). Pub. L. 102-83 substituted "section 2307 of title 38" for "section 907 of title 38" in item relating to burial benefits for veterans. Subsec. (g)(2). Pub. L. 102-54 substituted last two items relating to Department of Veterans Affairs for items relating to Veterans Administration, Loan guaranty revolving fund, and Veterans Administration, Servicemen's group life insurance fund. 1990-Subsec. (a). Pub. L. 101-508, § 13101(c)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "Increases in benefits payable under the old-age, survivors, and disability insurance program established under title II of the Social Security Act, or in benefits payable under section 231b(a), 231b(f)(3), 231c(a), or 231c(f) of title 45, shall not be considered "automatic spending increases" for purposes of this title; and no reduction in any such increase or in any of the benefits involved shall be made under any order issued under this subchapter." Subsec. (e). Pub. L. 101-508, § 13101(c)(2), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: "Offsetting receipts and collections shall not be reduced under any order issued under this subchapter." Subsec. (g)(1)(B). Pub. L. 101-508, § 13101(c)(3), inserted item relating to railroad supplemental annuity pension fund. Subsec. (h). Pub. L. 101-508, § 13101(c)(4), added subsec. (h) relating to optional exemption of military personnel. 1989-Subsec. (g)(1)(A). Pub. L. 101-220 inserted item relating to Farm Credit System Financial Assistance Corporation, interest payments, after item relating to Exchange stabilization fund. Pub. L. 101-73, § 743(a)(1), inserted item relating to Director of the Office of Thrift Supervision after item relating to Comptroller of the Currency. Pub. L. 101-73, § 743(a)(2), substituted items relating to Federal Deposit Insurance Corporation, Bank Insurance Fund; Federal Deposit Insurance Corporation, FSLIC Resolution Fund; and Federal Deposit Insurance Corporation, Savings Association Insurance Fund; for item relating to Federal Home Loan Bank Board. Pub. L. 101-73, § 743(a)(3), substituted item relating to Federal Housing Finance Board for item relating to Federal Home Loan Bank Board, Federal Savings and Loan Insurance Corporation. Pub. L. 101-73, § 743(a)(4), inserted items relating to Resolution Funding Corporation and Resolution Trust Corporation after item relating to Postal service fund. Subsec. (g)(2). Pub. L. 101-73, § 743(c), struck out item relating to Federal Savings and Loan Insurance Corporation fund (82-4037-0-3-371). EFFECTIVE DATE OF 1992 AMENDMENT Section 1101(a) of Pub. L. 102-572 provided that: "Except as otherwise provided in this Act, the provisions of this Act and the amendments made by this Act [see Tables for classification] shall take effect on January 1, 1993." SOLDIERS' AND AIRMEN'S HOME The Soldiers' and Airmen's Home, referred to in subsec. (g)(1)(A), was incorporated into the Armed Forces Retirement Home by section 411 of Title 24, Hospitals and Asylums. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 901, 904 of this title; title 16 section 839d-1. § 906. Exceptions, limitations, and special rules (a) Automatic spending increases Automatic spending increases are increases in outlays due to changes in indexes in the following programs: (1) National Wool Act; (2) Special milk program; and (3) Vocational rehabilitation basic State grants. In those programs all amounts other than the automatic spending increases shall be exempt from reduction under any order issued under this subchapter. (b) Effect of orders on 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 [20 U.S.C. 1071 et seq.), as a consequence of an order issued pursuant to section 904 of this title, 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 an order issued under section 904 of this title takes effect with respect to a fiscal year and ending at the close of such fiscal year, the rate used in computing the special allowance payment pursuant to section 438(b)(2)(A)(iii) of such Act [20 U.S.C. 1087-1(b)(2)(A)(iii)] 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 an order issued under section 904 of this title takes effect with respect to a fiscal year and ending at the close of such fiscal year, the origination fee which is authorized to be collected pursuant to section 438(c)(2) of such Act [20 U.S.C. 1087-1(c)(2)] shall be increased by 0.50 percent. (c) Treatment of foster care and adoption assistance programs Any order issued by the President under section 904 of this title shall make the reduction which is otherwise required under the foster |