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Introduced in House	7,840	n/a	n/a
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HR 2920 EHRFSCommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 2920CommentsClose CommentsPermalink

AN ACTCommentsClose CommentsPermalink

To reinstitute and update the Pay-As-You-Go requirement of budget neutrality on new tax and mandatory spending legislation, enforced by the threat of annual, automatic sequestration.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Statutory Pay-As-You-Go Act of 2009’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Purpose.CommentsClose CommentsPermalink





Sec. 3. Definitions.CommentsClose CommentsPermalink





Sec. 4. PAYGO estimates and PAYGO scorecards.CommentsClose CommentsPermalink





Sec. 5. Annual report and sequestration order.CommentsClose CommentsPermalink





Sec. 6. Calculating a sequestration.CommentsClose CommentsPermalink





Sec. 7. Current policy adjustment to the CBO estimates.CommentsClose CommentsPermalink





Sec. 8. Application of BBEDCA.CommentsClose CommentsPermalink





Sec. 9. Technical corrections.CommentsClose CommentsPermalink





Sec. 10. Conforming amendments.CommentsClose CommentsPermalink





Sec. 11. Exempt programs and activities.CommentsClose CommentsPermalink

SEC. 2. PURPOSE.

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

SEC. 3. DEFINITIONS.

As used in this Act--CommentsClose CommentsPermalink





(1) The term ‘BBEDCA’ means the Balanced Budget and Emergency Deficit Control Act of 1985.CommentsClose CommentsPermalink





(2) The definitions set forth in section 3 of the Congressional Budget and Impoundment Control Act of 1974 and in section 250 of BBEDCA shall apply to this Act, except to the extent that they are specifically modified as follows:CommentsClose CommentsPermalink





(A) The term ‘outyear’ means a fiscal year that occurs one or more years after the budget year.CommentsClose CommentsPermalink





(B) In section 250(c)(8)(C), the reference to the food stamp program shall be deemed to be a reference to the Supplemental Nutrition Assistance Program.CommentsClose CommentsPermalink





(3) The term ‘AMT’ means the Alternative Minimum Tax for individuals under sections 55-59 of the Internal Revenue Code of 1986, the term ‘EGTRRA’ means the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16), and the term ‘JGTRRA’ means the Jobs and Growth Tax Relief and Reconciliation Act of 2003 (Public Law 108-27).CommentsClose CommentsPermalink





(4)(A) The term ‘budgetary effects’ means the amounts by which PAYGO legislation changes direct spending or revenues relative to the baseline and shall be determined on the basis of estimates included by reference in the PAYGO Act or prepared under section 4(d)(3), as applicable. Budgetary effects that increase direct spending or decrease revenues are termed ‘costs’ and budgetary effects that increase revenues or decrease direct spending are termed ‘savings’.CommentsClose CommentsPermalink





(B) For purposes of these definitions, off-budget effects shall be counted as budgetary effects unless such changes flow directly from amendments to title II of the Social Security Act and related provisions of the Internal Revenue Code of 1986 and debt service effects shall not be counted as budgetary effects.CommentsClose CommentsPermalink





(C) Solely for purposes of recording entries on a PAYGO scorecard, provisions in appropriations Acts are also considered to be budgetary effects for purposes of this Act if such provisions make outyear modifications to substantive law, except that provisions for which the outlay effects net to zero over a period consisting of the current year, the budget year, and the 4 subsequent years shall not be considered budgetary effects. For purposes of this paragraph, the term, ‘modifications to substantive law’ refers to changes to or restrictions on entitlement law or other mandatory spending contained in appropriations Acts, notwithstanding section 250(c)(8) of BBEDCA. Provisions in appropriations Acts that are neither outyear modifications to substantive law nor changes in revenues have no budgetary effects for purposes of this Act.CommentsClose CommentsPermalink





(D) If a provision is designated as an emergency requirement under this Act and is also designated as an emergency requirement under the applicable rules of the House of Representatives, CBO shall not include the cost of such a provision in its estimate of the PAYGO legislation’s budgetary effects.CommentsClose CommentsPermalink





(5) The term ‘debit’ refers to the net total amount, when positive, by which costs recorded on the PAYGO scorecards for a fiscal year exceed savings recorded on those scorecards for that year.CommentsClose CommentsPermalink





(6) The term ‘entitlement law’ refers to a section of law which provides entitlement authority.CommentsClose CommentsPermalink





(7) The term ‘PAYGO legislation’ or a ‘PAYGO Act’ refers to a bill or joint resolution that affects direct spending or revenue relative to the baseline. The budgetary effects of changes in revenues and outyear modifications to substantive law included in appropriation Acts as defined in paragraph (4) shall be treated as if they were contained in PAYGO legislation.CommentsClose CommentsPermalink





(8) The term ‘timing shift’ refers to a delay of the date on which direct spending would otherwise occur from the ninth outyear to the tenth outyear or an acceleration of the date on which revenues would otherwise occur from the tenth outyear to the ninth outyear.CommentsClose CommentsPermalink

SEC. 4. PAYGO ESTIMATES AND PAYGO SCORECARDS.

(a) Paygo Estimates- (1) A PAYGO Act shall include by reference an estimate of its budgetary effects as determined under section 308(a)(3) of the Congressional Budget Act of 1974, if timely submitted for printing in the Congressional Record by the chairs of the Committees on the Budget of the House of Representatives and the Senate, as applicable, before the vote on the PAYGO legislation. The Clerk of the House or the Secretary of the Senate, as applicable, shall also incorporate by reference such estimate printed in the relevant portion of the Congressional Record under section 308(a)(3) of the Congressional Budget Act of 1974 into the enrollment of a PAYGO Act. Budgetary effects that are not so included shall be determined under section 4(d)(3).CommentsClose CommentsPermalink





(2)(A) Section 308(a) of the Congressional Budget Act of 1974 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(3) CBO PAYGO ESTIMATES- Before a vote in either House on a PAYGO Act that, if determined in the affirmative, would clear such Act for enrollment, the chairs of the Committees on the Budget of the House and Senate, as applicable, shall request from the Director of the Congressional Budget Office an estimate of the budgetary effects of such Act under the Statutory Pay-As-You-Go Act of 2009. If such an estimate is timely provided, the chairs of the Committees on the Budget of the House of Representatives and the Senate shall post such estimate on their respective committee websites and cause it to be printed in the Congressional Record under the heading ‘PAYGO ESTIMATE’. For purposes of this section, the Director of the Congressional Budget Office shall not count timing shifts in his estimates of the budgetary effects of PAYGO legislation (as defined in section 3 of the Statutory Pay-As-You-Go Act of 2009).’.CommentsClose CommentsPermalink





(B) The side heading of section 308(a) of the Congressional Budget Act of 1974 is amended by striking ‘Reports on’.CommentsClose CommentsPermalink





(b) Section 308 of the Congressional Budget Act of 1974 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Scorekeeping Guidelines- The Director of the Congressional Budget Office shall provide estimates under this section in accordance with the scorekeeping guidelines determined under section 252(d)(5) of the Balanced Budget and Emergency Deficit Control Act of 1985. Upon agreement, the chairs of the Committees on the Budget of the House of Representatives and the Senate shall submit updates to such guidelines for printing in the Congressional Record.’.CommentsClose CommentsPermalink





(c) Current Policy Adjustments for Certain Legislation- For purposes of calculating budgetary effects under this Act, CBO shall adjust its estimates as described below for any provision of legislation designated as meeting the criteria in subsection (b), (c), or (d) of section 7 and which the chairman of the Committee on the Budget of the House of Representatives or the Senate, as applicable, designates as meeting those criteria. A single piece of legislation may contain provisions designated as meeting criteria in more than one of the subsections listed above. For appropriately designated provisions, CBO shall exclude from its estimates for purposes of this Act any costs of a provision to the extent that those costs, when combined with all other excluded costs of any other previously designated provisions of enacted legislation under the same subsection of section 7, do not exceed the maximum applicable current policy adjustment defined under the applicable subsection of section 7 for the applicable 10-year period, using the most recent baseline estimates supplied by the Congressional Budget Office consistent with section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 used in considering a concurrent resolution on the budget; or, after the beginning of a new calendar year and before consideration of a concurrent resolution on the budget, using the most recent baseline estimates supplied by the Congressional Budget Office consistent with section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985. CBO estimates of legislation containing a current policy designation under this subsection shall include a separate presentation of costs excluded from the calculation of budgetary effects for the legislation, as well as an updated total of all excluded costs of provisions within the same subsection of section 7.CommentsClose CommentsPermalink





(d) OMB Paygo Scorecards-CommentsClose CommentsPermalink





(1) IN GENERAL- OMB shall maintain and make publicly available a continuously updated document containing two PAYGO scorecards displaying the budgetary effects of PAYGO legislation as determined under section 308 of the Congressional Budget Act of 1974, applying the look-back requirement in subsection (e) and the averaging requirement in subsection (f), and a separate addendum displaying the estimates of the costs of provisions designated in statute as emergency requirements.CommentsClose CommentsPermalink





(2) ESTIMATES IN LEGISLATION- Except as provided in paragraph (3), in making the calculations for the PAYGO scorecards, OMB shall use the budgetary effects included by reference in the applicable legislation.CommentsClose CommentsPermalink





(3) OMB ESTIMATES- If legislation does not contain the estimate of budgetary effects under paragraph (2), then OMB shall score the budgetary effects of that legislation upon its enactment, based on the approaches to scorekeeping set forth in this Act.CommentsClose CommentsPermalink





(4) 5-year SCORECARD- The first scorecard shall display the budgetary effects of PAYGO legislation in each year over the 5-year period beginning in the budget year.CommentsClose CommentsPermalink





(5) 10-year SCORECARD- The second scorecard shall display the budgetary effects of PAYGO legislation in each year over the 10-year period beginning in the budget year.CommentsClose CommentsPermalink





(e) Look-back to Capture Current-year Effects- For purposes of this section, OMB shall treat the budgetary effects of PAYGO legislation enacted during a session of Congress that occur during the current year as though they occurred in the budget year.CommentsClose CommentsPermalink





(f) Averaging Used to Measure Compliance Over 5-year and 10-year Periods- OMB shall cumulate the budgetary effects of a PAYGO Act over the budget year (which includes any look-back effects under subsection (e)) and--CommentsClose CommentsPermalink





(1) for purposes of the 5-year scorecard referred to in subsection (d)(4), the four subsequent outyears, divide that cumulative total by five, and enter the quotient in the budget-year column and in each subsequent column of the 5-year PAYGO scorecard; andCommentsClose CommentsPermalink





(2) for purposes of the 10-year scorecard referred to in subsection (d)(5), the nine subsequent outyears, divide that cumulative total by ten, and enter the quotient in the budget-year column and in each subsequent column of the 10-year PAYGO scorecard.CommentsClose CommentsPermalink

SEC. 5. ANNUAL REPORT AND SEQUESTRATION ORDER.

(a) Annual Report- Not later than 14 days (excluding weekends and holidays) after Congress adjourns to end a session, OMB shall make publicly available and cause to be printed in the Federal Register an annual PAYGO report. The report shall include an up-to-date document containing the PAYGO scorecards, a description of any current policy adjustments made under section 4(c), information about emergency legislation (if any) designated under section 3(4)(D), information about any sequestration if required by subsection (b), and other data and explanations that enhance public understanding of this Act and actions taken under it.CommentsClose CommentsPermalink





(b) Sequestration Order- If the annual report issued at the end of a session of Congress under subsection (a) shows a debit on either PAYGO scorecard for the budget year, OMB shall prepare and the President shall issue and include in that report a sequestration order that, upon issuance, shall reduce budgetary resources of direct spending programs by enough to offset that debit as prescribed in section 6. If there is a debit on both scorecards, the order shall fully offset the larger of the two debits. OMB shall include that order in the annual report and transmit it to the House of Representatives and the Senate. If the President issues a sequestration order, the annual report shall contain, for each budget account to be sequestered, estimates of the baseline level of budgetary resources subject to sequestration, the amount of budgetary resources to be sequestered, and the outlay reductions that will occur in the budget year and the subsequent fiscal year because of that sequestration.CommentsClose CommentsPermalink

SEC. 6. CALCULATING A SEQUESTRATION.

(a) Reducing Nonexempt Budgetary Resources by a Uniform Percentage- OMB shall calculate the uniform percentage by which the budgetary resources of nonexempt direct spending programs are to be sequestered such that the outlay savings resulting from that sequestration, as calculated under subsection (b), shall offset the budget-year debit, if any on the applicable PAYGO scorecard. If the uniform percentage calculated under the prior sentence exceeds 4 percent, the Medicare programs described in section 256(d) of BBEDCA shall be reduced by 4 percent and the uniform percentage by which the budgetary resources of all other nonexempt direct spending programs are to be sequestered shall be increased, as necessary, so that the sequestration of Medicare and of all other nonexempt direct spending programs together produce the required outlay savings.CommentsClose CommentsPermalink





(b) Outlay Savings- In determining the amount by which a sequestration offsets a budget-year debit, OMB shall count--CommentsClose CommentsPermalink





(1) the amount by which the sequestration in a crop year of crop support payments, pursuant to section 256(j) of BBEDCA, reduces outlays in the budget year and the subsequent fiscal year;CommentsClose CommentsPermalink





(2) the amount by which the sequestration of Medicare payments in the 12-month period following the sequestration order, pursuant to section 256(d) of BBEDCA, reduces outlays in the budget year and the subsequent fiscal year; andCommentsClose CommentsPermalink





(3) the amount by which the sequestration in the budget year of the budgetary resources of other nonexempt mandatory programs reduces outlays in the budget year and in the subsequent fiscal year.CommentsClose CommentsPermalink

SEC. 7. CURRENT POLICY ADJUSTMENT TO THE CBO ESTIMATES.

(a) Purpose- The purpose of this section is to provide for adjustments of estimates of budgetary effects of PAYGO legislation for legislation affecting four areas of the budget--CommentsClose CommentsPermalink





(1) payments made under section 1848 of the Social Security Act (titled Payment for Physicians’ Services);CommentsClose CommentsPermalink





(2) the Estate and Gift Tax under subtitle B of the Internal Revenue Code of 1986;CommentsClose CommentsPermalink





(3) the AMT; andCommentsClose CommentsPermalink





(4) provisions of EGTRRA or JGTRRA that amended the Internal Revenue Code of 1986 (or provisions in later statutes further amending the amendments made by EGTRRA or JGTRRA), other than--CommentsClose CommentsPermalink





(A) the provisions of those two Acts that were made permanent by the Pension Protection Act of 2006 (Public Law 109-280);CommentsClose CommentsPermalink





(B) amendments to the estate and gift tax referred to in paragraph (2);CommentsClose CommentsPermalink





(C) the AMT referred to in paragraph (3);CommentsClose CommentsPermalink





(D) the 35 percent bracket and that portion of the 33 percent bracket that applies to taxable income greater than $200,000 for an individual and $250,000 for a couple; andCommentsClose CommentsPermalink





(E) provisions in those two Acts relating to taxes rates on capital gains and dividends.CommentsClose CommentsPermalink





(b) Medicare Payments to Physicians-CommentsClose CommentsPermalink





(1) CRITERIA- Legislation that includes provisions amending or superseding the system of payments under section 1848 of the Social Security Act shall trigger the current policy adjustment required by this Act.CommentsClose CommentsPermalink





(2) ADJUSTMENT- The amount of the maximum current policy adjustment shall be the difference between--CommentsClose CommentsPermalink





(A) estimated net outlays attributable to the payments made to physicians under that section of the Social Security Act (as scheduled on July 15, 2009, to be in effect); andCommentsClose CommentsPermalink





(B) what those net outlays would have been if the nominal payment rates and related parameters in effect for 2009 had been in effect thereafter without change.CommentsClose CommentsPermalink





(c) Estate and Gift Tax-CommentsClose CommentsPermalink





(1) CRITERIA- Legislation that includes provisions amending the Estate and Gift Tax under subtitle B of the Internal Revenue Code of 1986 shall trigger the current policy adjustment required by this Act.CommentsClose CommentsPermalink





(2) ADJUSTMENT- The amount of the maximum current policy adjustment shall be the difference between--CommentsClose CommentsPermalink





(A) total revenues projected to be collected under the Internal Revenue Code of 1986 (as scheduled on July 15, 2009, to be in effect); andCommentsClose CommentsPermalink





(B) what those revenue collections would have been if, on the date of enactment of the legislation meeting the criteria in paragraph (1), estate and gift tax law had instead been amended so that the tax rates, nominal exemption amounts, and related parameters in effect for tax year 2009 had remained in effect thereafter without change.CommentsClose CommentsPermalink





(d) Permanent Extension of Middle-Class Tax Cuts and AMT Relief-CommentsClose CommentsPermalink





(1) CRITERIA- Legislation that includes provisions extending middle-class tax cuts or AMT relief shall trigger the current policy adjustment required by this Act if those provisions extend one or more of the following provisions--CommentsClose CommentsPermalink





(A) AMT relief for calendar year 2010 and subsequent years in such a manner that the number of AMT taxpayers is not estimated to exceed the number of AMT taxpayers in tax year 2008 in any year through the tenth year after enactment;CommentsClose CommentsPermalink





(B) the 10 percent bracket as in effect for tax year 2010, as provided for under section 101(a) of the Economic Growth and Tax Relief Reconciliation Act of 2001 and any later amendments through July 15, 2009;CommentsClose CommentsPermalink





(C) the child tax credit as in effect for tax year 2010, as provided for under section 201 of the Economic Growth and Tax Relief Reconciliation Act and any later amendments through July 15, 2009;CommentsClose CommentsPermalink





(D) tax benefits for married couples as in effect for tax year 2010, as provided for under title III of the Economic Growth and Tax Relief Reconciliation Act and any later amendments through July 15, 2009;CommentsClose CommentsPermalink





(E) the adoption credit as in effect in tax year 2010, as provided for under section 202 of the Economic Growth and Tax Relief Reconciliation Act of 2001 and any later amendments through July 15, 2009;CommentsClose CommentsPermalink





(F) the dependent care credit as in effect in tax year 2010, as provided for under section 204 of the Economic Growth and Tax Relief Reconciliation Act of 2001 and any later amendments through July 15, 2009;CommentsClose CommentsPermalink





(G) the employer-provided child care credit as in effect in tax year 2010, as provided for under section 205 of the Economic Growth and Tax Relief Reconciliation Act of 2001 and any later amendments through July 15, 2009;CommentsClose CommentsPermalink





(H) the education tax benefits as in effect in tax year 2010, as provided for under title IV of the Economic Growth and Tax Relief Reconciliation Act of 2001 and any later amendments through July 15, 2009;CommentsClose CommentsPermalink





(I) the 25 and 28 percent brackets as in effect for tax year 2010, as provided for under section 101(a) of the Economic Growth and Tax Relief Reconciliation Act of 2001 and any later amendments through July 15, 2009; andCommentsClose CommentsPermalink





(J) the 33 percent brackets as in effect for tax year 2010, as provided for under section 101(a) of the Economic Growth and Tax Relief Reconciliation Act of 2001 and any later amendment affecting taxpayers with taxable income of $200,000 or less for individuals and $250,000 or less for couples in calendar year 2010 and increased in each subsequent year by an amount equal to the cost of living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





(2) ADJUSTMENT- The amount of the maximum current policy adjustment shall be the difference between what total revenues would have been under the Internal Revenue Code of 1986 (as scheduled on July 15, 2009, to be in effect) and what revenues would be if legislation--CommentsClose CommentsPermalink





(A) permanently extending the AMT exemption and brackets in effect in tax year 2009 but increased in tax year 2010 and each subsequent tax year as indicated under subsection (d)(2)(B), along with any additional amount necessary to prevent the number of taxpayers who must pay AMT from increasing; andCommentsClose CommentsPermalink





(B) permanently extending the provisions identified in paragraph (1),CommentsClose CommentsPermalink





were enacted on the same day as the legislation referred to in paragraph (1).CommentsClose CommentsPermalink

SEC. 8. APPLICATION OF BBEDCA.

For purposes of this Act--CommentsClose CommentsPermalink





(1) notwithstanding section 275 of BBEDCA, the provisions of sections 255, 256, 257, and 274 of BBEDCA, as amended by this Act, shall apply to the provisions of this Act;CommentsClose CommentsPermalink





(2) references in sections 255, 256, 257, and 274 to ‘this part’ or ‘this title’ shall be interpreted as applying to this Act;CommentsClose CommentsPermalink





(3) references in sections 255, 256, 257, and 274 of BBEDCA to ‘section 254’ shall be interpreted as referencing section 5 of this Act;CommentsClose CommentsPermalink





(4) the reference in section 256(b) of BBEDCA to ‘section 252 or 253’ shall be interpreted as referencing section 5 of this Act;CommentsClose CommentsPermalink





(5) the reference in section 256(d)(1) of BBEDCA to ‘section 252 or 253’ shall be interpreted as referencing section 6 of this Act;CommentsClose CommentsPermalink





(6) the reference in section 256(d)(4) of BBEDCA to ‘section 252 or 253’ shall be interpreted as referencing section 5 of this Act;CommentsClose CommentsPermalink





(7) section 256(k) of BBEDCA shall apply to a sequestration, if any, under this Act; andCommentsClose CommentsPermalink





(8) references in section 257(e) of BBEDCA to ‘section 251, 252, or 253’ shall be interpreted as referencing section 4 of this Act.CommentsClose CommentsPermalink

SEC. 9. TECHNICAL CORRECTIONS.

(a) Section 250(c)(18) of BBEDCA is amended by striking ‘the expenses the Federal deposit insurance agencies’ and inserting ‘the expenses of the Federal deposit insurance agencies’.CommentsClose CommentsPermalink





(b) Section 256(k)(1) of BBEDCA is amended by striking ‘in paragraph (5)’ and inserting ‘in paragraph (6)’.CommentsClose CommentsPermalink

SEC. 10. CONFORMING AMENDMENTS.

(a) Section 256(a) of BBEDCA is repealed.CommentsClose CommentsPermalink





(b) Section 256(b) of BBEDCA is amended by striking ‘origination fees under sections 438(c)(2) and 455(c) of that Act shall each be increased by 0.50 percentage point.’ and inserting in lieu thereof ‘origination fees under sections 438(c)(2) and (6) and 455(c) and loan processing and issuance fees under section 428(f)(1)(A)(ii) of that Act shall each be increased by the uniform percentage specified in that sequestration order, and, for student loans originated during the period of the sequestration, special allowance payments under section 438(b) of that Act accruing during the period of the sequestration shall be reduced by the uniform percentage specified in that sequestration order.’.CommentsClose CommentsPermalink





(c) Section 256(c) of BBEDCA is repealed.CommentsClose CommentsPermalink





(d) Section 256(d) of BBEDCA is amended--CommentsClose CommentsPermalink





(1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (5), and (6);CommentsClose CommentsPermalink





(2) by amending paragraph (1) to read as follows:CommentsClose CommentsPermalink





‘(1) CALCULATION OF REDUCTION IN PAYMENT AMOUNTS- To achieve the total percentage reduction in those programs required by section 252 or 253, subject to paragraph (2), and notwithstanding section 710 of the Social Security Act, OMB shall determine, and the applicable Presidential order under section 254 shall implement, the percentage reduction that shall apply, with respect to the health insurance programs under title XVIII of the Social Security Act--CommentsClose CommentsPermalink





‘(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)); andCommentsClose CommentsPermalink





‘(B) in the case of parts C and D, to monthly payments under contracts under such parts for the same one-year period;CommentsClose CommentsPermalink





such that the reduction made in payments under that order shall achieve the required total percentage reduction in those payments for that period.’;CommentsClose CommentsPermalink





(3) by inserting after paragraph (1) the following:CommentsClose CommentsPermalink





‘(2) UNIFORM REDUCTION RATE; MAXIMUM PERMISSIBLE REDUCTION- Reductions in payments for programs and activities under such title XVIII pursuant to a sequestration order under section 254 shall be at a uniform rate, which shall not exceed 4 percent, across all such programs and activities subject to such order.’;CommentsClose CommentsPermalink





(4) by inserting after paragraph (3), as redesignated, the following:CommentsClose CommentsPermalink





‘(4) TIMING OF SUBSEQUENT SEQUESTRATION ORDER- A sequestration order required by section 252 or 253 with respect to programs under such title XVIII shall not take effect until the first month beginning after the end of the effective period of any prior sequestration order with respect to such programs, as determined in accordance with paragraph (1).’;CommentsClose CommentsPermalink





(5) in paragraph (6), as redesignated, to read as follows:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) the part C growth percentage under section 1853(c)(6);CommentsClose CommentsPermalink





‘(B) the part D annual growth rate under section 1860D-2(b)(6); andCommentsClose CommentsPermalink





‘(C) application of risk corridors to part D payment rates under section 1860D-15(e).’; andCommentsClose CommentsPermalink





(6) by adding after paragraph (6), as redesignated, the following:CommentsClose CommentsPermalink





‘(7) EXEMPTIONS FROM SEQUESTRATION- In addition to the programs and activities specified in section 255, the following shall be exempt from sequestration under this part:CommentsClose CommentsPermalink





‘(A) PART D LOW-INCOME SUBSIDIES- Premium and cost-sharing subsidies under section 1860D-14 of the Social Security Act.CommentsClose CommentsPermalink





‘(B) PART D CATASTROPHIC SUBSIDY- Payments under section 1860D-15(b) and (e)(2)(B) of the Social Security Act.CommentsClose CommentsPermalink





‘(C) QUALIFIED INDIVIDUAL (QI) PREMIUMS- Payments to States for coverage of Medicare cost-sharing for certain low-income Medicare beneficiaries under section 1933 of the Social Security Act.’.CommentsClose CommentsPermalink

SEC. 11. EXEMPT PROGRAMS AND ACTIVITIES.

(a) Designations- Section 255 of BBEDCA is amended by redesignating subsection (i) as (j) and striking ‘1998’ and inserting in lieu thereof ‘2010’.CommentsClose CommentsPermalink





(b) Social Security, Veterans Programs, Net Interest, and Tax Credits- Subsections (a) through (d) of section 255 of BBEDCA are amended to read as follows:CommentsClose CommentsPermalink





‘(a) Social Security Benefits and Tier I Railroad Retirement Benefits- Benefits payable under the old-age, survivors, and disability insurance program established under title II of the Social Security Act (42 U.S.C. 401 et seq.), and benefits payable under section 231b(a), 231b(f)(2), 231c(a), and 231c(f) of title 45 United States Code, shall be exempt from reduction under any order issued under this part.CommentsClose CommentsPermalink





‘(b) Veterans Programs- The following program shall be exempt from reduction under any order issued under this part--CommentsClose CommentsPermalink





‘All programs administered by the Department of Veterans Affairs.CommentsClose CommentsPermalink





‘Special Benefits for Certain World War II Veterans (28-0401-0-1-701).CommentsClose CommentsPermalink





‘(c) Net Interest- No reduction of payments for net interest (all of major functional category 900) shall be made under any order issued under this part.CommentsClose CommentsPermalink





‘(d) Refundable Income Tax Credits- Payments to individuals made pursuant to provisions of the Internal Revenue Code of 1986 establishing refundable tax credits shall be exempt from reduction under any order issued under this part.’.CommentsClose CommentsPermalink





(c) Other Programs and Activities, Low-income Programs, and Economic Recovery Programs- Subsections (g) and (h) of section 255 of BBEDCA are amended to read as follows:CommentsClose CommentsPermalink





‘(g) Other Programs and Activities-CommentsClose CommentsPermalink





‘(1)(A) The following budget accounts and activities shall be exempt from reduction under any order issued under this part:CommentsClose CommentsPermalink





‘Activities resulting from private donations, bequests, or voluntary contributions to the Government.CommentsClose CommentsPermalink





‘Activities financed by voluntary payments to the Government for goods or services to be provided for such payments.CommentsClose CommentsPermalink





‘Administration of Territories, Northern Mariana Islands Covenant grants (14-0412-0-1-808).CommentsClose CommentsPermalink





‘Advances to the Unemployment Trust Fund and Other Funds (16-0327-0-1-600).CommentsClose CommentsPermalink





‘Black Lung Disability Trust Fund Refinancing (16-0329-0-1-601).CommentsClose CommentsPermalink





‘Bonneville Power Administration Fund and borrowing authority established pursuant to section 13 of Public Law 93-454 (1974), as amended (89-4045-0-3-271).CommentsClose CommentsPermalink





‘Claims, Judgments, and Relief Acts (20-1895-0-1-808).CommentsClose CommentsPermalink





‘Compact of Free Association (14-0415-0-1-808).CommentsClose CommentsPermalink





‘Compensation of the President (11-0209-01-1-802).CommentsClose CommentsPermalink





‘Comptroller of the Currency, Assessment Funds (20-8413-0-8-373).CommentsClose CommentsPermalink





‘Continuing Fund, Southeastern Power Administration (89-5653-0-2-271).CommentsClose CommentsPermalink





‘Continuing Fund, Southwestern Power Administration (89-5649-0-2-271).CommentsClose CommentsPermalink





‘Dual Benefits Payments Account (60-0111-0-1-601).CommentsClose CommentsPermalink





‘Emergency Fund, Western Area Power Administration (89-5069-0-2-271).CommentsClose CommentsPermalink





‘Exchange Stabilization Fund (20-4444-0-3-155).CommentsClose CommentsPermalink





‘Federal Deposit Insurance Corporation, Deposit Insurance Fund (51-4596-4-4-373).CommentsClose CommentsPermalink





‘Federal Deposit Insurance Corporation, FSLIC Resolution Fund (51-4065-0-3-373).CommentsClose CommentsPermalink





‘Federal Deposit Insurance Corporation, Noninterest Bearing Transaction Account Guarantee (51-4458-0-3-373).CommentsClose CommentsPermalink





‘Federal Deposit Insurance Corporation, Senior Unsecured Debt Guarantee (51-4457-0-3-373).CommentsClose CommentsPermalink





‘Federal Housing Finance Agency, Administrative Expenses (95-5532-0-2-371).CommentsClose CommentsPermalink





‘Federal Payment to the District of Columbia Judicial Retirement and Survivors Annuity Fund (20-1713-0-1-752).CommentsClose CommentsPermalink





‘Federal Payment to the District of Columbia Pension Fund (20-1714-0-1-601).CommentsClose CommentsPermalink





‘Federal Payments to the Railroad Retirement Accounts (60-0113-0-1-601).CommentsClose CommentsPermalink





‘Federal Reserve Bank Reimbursement Fund (20-1884-0-1-803).CommentsClose CommentsPermalink





‘Financial Agent Services (20-1802-0-1-803).CommentsClose CommentsPermalink





‘Foreign Military Sales Trust Fund (11-8242-0-7-155).CommentsClose CommentsPermalink





‘Hazardous Waste Management, Conservation Reserve Program (12-4336-0-3-999).CommentsClose CommentsPermalink





‘Host Nation Support Fund for Relocation (97-8337-0-7-051).CommentsClose CommentsPermalink





‘Internal Revenue Collections for Puerto Rico (20-5737-0-2-806).CommentsClose CommentsPermalink





‘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.CommentsClose CommentsPermalink





‘Medical Facilities Guarantee and Loan Fund (75-9931-0-3-551).CommentsClose CommentsPermalink





‘National Credit Union Administration, Central Liquidity Facility (25-4470-0-3-373).CommentsClose CommentsPermalink





‘National Credit Union Administration, Corporate Credit Union Share Guarantee Program (25-4476-0-3-376).CommentsClose CommentsPermalink





‘National Credit Union Administration, Credit Union Homeowners Affordability Relief Program (25-4473-0-3-371).CommentsClose CommentsPermalink





‘National Credit Union Administration, Credit Union Share Insurance Fund (25-4468-0-3-373).CommentsClose CommentsPermalink





‘National Credit Union Administration, Credit Union System Investment Program (25-4474-0-3-376).CommentsClose CommentsPermalink





‘National Credit Union Administration, Operating fund (25-4056-0-3-373).CommentsClose CommentsPermalink





‘National Credit Union Administration, Share Insurance Fund Corporate Debt Guarantee Program (25-4469-0-3-376).CommentsClose CommentsPermalink





‘National Credit Union Administration, U.S. Central Federal Credit Union Capital Program (25-4475-0-3-376).CommentsClose CommentsPermalink





‘Office of Thrift Supervision (20-4108-0-3-373).CommentsClose CommentsPermalink





‘Panama Canal Commission Compensation Fund (16-5155-0-2-602).CommentsClose CommentsPermalink





‘Payment of Vietnam and USS Pueblo prisoner-of-war claims within the Salaries and Expenses, Foreign Claims Settlement account (15-0100-0-1-153).CommentsClose CommentsPermalink





‘Payment to Civil Service Retirement and Disability Fund (24-0200-0-1-805).CommentsClose CommentsPermalink





‘Payment to Department of Defense Medicare-Eligible Retiree Health Care Fund (97-0850-0-1-054).CommentsClose CommentsPermalink





‘Payment to Judiciary Trust Funds (10-0941-0-1-752).CommentsClose CommentsPermalink





‘Payment to Military Retirement Fund (97-0040-0-1-054).CommentsClose CommentsPermalink





‘Payment to the Foreign Service Retirement and Disability Fund (19-0540-0-1-153).CommentsClose CommentsPermalink





‘Payments to Copyright Owners (03-5175-0-2-376).CommentsClose CommentsPermalink





‘Payments to Health Care Trust Funds (75-0580-0-1-571).CommentsClose CommentsPermalink





‘Payment to Radiation Exposure Compensation Trust Fund (15-0333-0-1-054).CommentsClose CommentsPermalink





‘Payments to Social Security Trust Funds (28-0404-0-1-651).CommentsClose CommentsPermalink





‘Payments to the United States Territories, Fiscal Assistance (14-0418-0-1-806).CommentsClose CommentsPermalink





‘Payments to trust funds from excise taxes or other receipts properly creditable to such trust funds.CommentsClose CommentsPermalink





‘Payments to widows and heirs of deceased Members of Congress (00-0215-0-1-801).CommentsClose CommentsPermalink





‘Postal Service Fund (18-4020-0-3-372).CommentsClose CommentsPermalink





‘Radiation Exposure Compensation Trust Fund (15-8116-0-1-054).CommentsClose CommentsPermalink





‘Reimbursement to Federal Reserve Banks (20-0562-0-1-803).CommentsClose CommentsPermalink





‘Salaries of Article III judges.CommentsClose CommentsPermalink





‘Soldiers and Airmen’s Home, payment of claims (84-8930-0-7-705).CommentsClose CommentsPermalink





‘Tennessee Valley Authority Fund, except nonpower programs and activities (64-4110-0-3-999).CommentsClose CommentsPermalink





‘Tribal and Indian trust accounts within the Department of the Interior which fund prior legal obligations of the Government or which are established pursuant to Acts of Congress regarding Federal management of tribal real property or other fiduciary responsibilities, including but not limited to Tribal Special Fund (14-5265-0-2-452), Tribal Trust Fund (14-8030-0-7-452), White Earth Settlement (14-2204-0-1-452), and Indian Water Rights and Habitat Acquisition (14-5505-0-2-303).CommentsClose CommentsPermalink





‘United Mine Workers of America 1992 Benefit Plan (95-8260-0-7-551).CommentsClose CommentsPermalink





‘United Mine Workers of America 1993 Benefit Plan (95-8535-0-7-551).CommentsClose CommentsPermalink





‘United Mine Workers of America Combined Benefit Fund (95-8295-0-7-551).CommentsClose CommentsPermalink





‘United States Enrichment Corporation Fund (95-4054-0-3-271).CommentsClose CommentsPermalink





‘Universal Service Fund (27-5183-0-2-376).CommentsClose CommentsPermalink





‘Vaccine Injury Compensation (75-0320-0-1-551).CommentsClose CommentsPermalink





‘Vaccine Injury Compensation Program Trust Fund (20-8175-0-7-551).CommentsClose CommentsPermalink





‘(B) The following Federal retirement and disability accounts and activities shall be exempt from reduction under any order issued under this part:CommentsClose CommentsPermalink





‘Black Lung Disability Trust Fund (20-8144-0-7-601).CommentsClose CommentsPermalink





‘Central Intelligence Agency Retirement and Disability System Fund (56-3400-0-1-054).CommentsClose CommentsPermalink





‘Civil Service Retirement and Disability Fund (24-8135-0-7-602).CommentsClose CommentsPermalink





‘Comptrollers general retirement system (05-0107-0-1-801).CommentsClose CommentsPermalink





‘Contributions to U.S. Park Police annuity benefits, Other Permanent Appropriations (14-9924-0-2-303).CommentsClose CommentsPermalink





‘Court of Appeals for Veterans Claims Retirement Fund (95-8290-0-7-705).CommentsClose CommentsPermalink





‘Department of Defense Medicare-Eligible Retiree Health Care Fund (97-5472-0-2-551).CommentsClose CommentsPermalink





‘District of Columbia Federal Pension Fund (20-5511-0-2-601).CommentsClose CommentsPermalink





‘District of Columbia Judicial Retirement and Survivors Annuity Fund (20-8212-0-7-602).CommentsClose CommentsPermalink





‘Energy Employees Occupational Illness Compensation Fund (16-1523-0-1-053).CommentsClose CommentsPermalink





‘Foreign National Employees Separation Pay (97-8165-0-7-051).CommentsClose CommentsPermalink





‘Foreign Service National Defined Contributions Retirement Fund (19-5497-0-2-602).CommentsClose CommentsPermalink





‘Foreign Service National Separation Liability Trust Fund (19-8340-0-7-602).CommentsClose CommentsPermalink





‘Foreign Service Retirement and Disability Fund(19-8186-0-7-602).CommentsClose CommentsPermalink





‘Government Payment for Annuitants, Employees Health Benefits (24-0206-0-1-551).CommentsClose CommentsPermalink





‘Government Payment for Annuitants, Employee Life Insurance (24-0500-0-1-602).CommentsClose CommentsPermalink





‘Judicial Officers’ Retirement Fund (10-8122-0-7-602).CommentsClose CommentsPermalink





‘Judicial Survivors’ Annuities Fund (10-8110-0-7-602).CommentsClose CommentsPermalink





‘Military Retirement Fund (97-8097-0-7-602).CommentsClose CommentsPermalink





‘National Railroad Retirement Investment Trust (60-8118-0-7-601).CommentsClose CommentsPermalink





‘National Oceanic and Atmospheric Administration retirement (13-1450-0-1-306).CommentsClose CommentsPermalink





‘Pensions for former Presidents (47-0105-0-1-802).CommentsClose CommentsPermalink





‘Postal Service Retiree Health Benefits Fund (24-5391-0-2-551).CommentsClose CommentsPermalink





‘Public Safety Officer Benefits (15-0403-0-1-754).CommentsClose CommentsPermalink





‘Rail Industry Pension Fund (60-8011-0-7-601).CommentsClose CommentsPermalink





‘Retired Pay, Coast Guard (70-0602-0-1-403).CommentsClose CommentsPermalink





‘Retirement Pay and Medical Benefits for Commissioned Officers, Public Health Service (75-0379-0-1-551).CommentsClose CommentsPermalink





‘Special Benefits for Disabled Coal Miners (16-0169-0-1-601).CommentsClose CommentsPermalink





‘Special Benefits, Federal Employees’ Compensation Act (16-1521-0-1-600).CommentsClose CommentsPermalink





‘Special Workers Compensation Expenses (16-9971-0-7-601).CommentsClose CommentsPermalink





‘Tax Court Judges Survivors Annuity Fund (23-8115-0-7-602).CommentsClose CommentsPermalink





‘United States Court of Federal Claims Judges’ Retirement Fund (10-8124-0-7-602).CommentsClose CommentsPermalink





‘United States Secret Service, DC Annuity (70-0400-0-1-751).CommentsClose CommentsPermalink





‘Voluntary Separation Incentive Fund (97-8335-0-7-051).CommentsClose CommentsPermalink





‘(2) Prior legal obligations of the Government in the following budget accounts and activities shall be exempt from any order issued under this part:CommentsClose CommentsPermalink





‘Biomass Energy Development (20-0114-0-1-271).CommentsClose CommentsPermalink





‘Check Forgery Insurance Fund (20-4109-0-3-803).CommentsClose CommentsPermalink





‘Credit liquidating accounts.CommentsClose CommentsPermalink





‘Credit reestimates.CommentsClose CommentsPermalink





‘Employees Life Insurance Fund (24-8424-0-8-602).CommentsClose CommentsPermalink





‘Federal Aviation Insurance Revolving Fund (69-4120-0-3-402).CommentsClose CommentsPermalink





‘Federal Crop Insurance Corporation Fund (12-4085-0-3-351).CommentsClose CommentsPermalink





‘Federal Emergency Management Agency, National Flood Insurance Fund (58-4236-0-3-453).CommentsClose CommentsPermalink





‘Federal Home Loan Mortgage Corporation (Freddie Mac).CommentsClose CommentsPermalink





‘Federal National Mortgage Corporation (Fannie Mae).CommentsClose CommentsPermalink





‘Geothermal resources development fund (89-0206-0-1-271).CommentsClose CommentsPermalink





‘Low-Rent Public Housing--Loans and Other Expenses (86-4098-0-3-604).CommentsClose CommentsPermalink





‘Maritime Administration, War Risk Insurance Revolving Fund (69-4302-0-3-403).CommentsClose CommentsPermalink





‘Natural Resource Damage Assessment Fund (14-1618-0-1-302).CommentsClose CommentsPermalink





‘Overseas Private Investment Corporation, Noncredit Account (71-4184-0-3-151).CommentsClose CommentsPermalink





‘Pension Benefit Guaranty Corporation Fund (16-4204-0-3-601).CommentsClose CommentsPermalink





‘San Joaquin Restoration Fund (14-5537-0-2-301).CommentsClose CommentsPermalink





‘Servicemembers’ Group Life Insurance Fund (36-4009-0-3-701).CommentsClose CommentsPermalink





‘Terrorism Insurance Program (20-0123-0-1-376).CommentsClose CommentsPermalink





‘(h) Low-income Programs- The following programs shall be exempt from reduction under any order issued under this part:CommentsClose CommentsPermalink





‘Academic Competitiveness/Smart Grant Program (91-0205-0-1-502).CommentsClose CommentsPermalink





‘Child Care Entitlement to States (75-1550-0-1-609).CommentsClose CommentsPermalink





‘Child Enrollment Contingency Fund (75-5551-0-2-551).CommentsClose CommentsPermalink





‘Child Nutrition Programs (with the exception of special milk programs) (12-3539-0-1-605).CommentsClose CommentsPermalink





‘Children’s Health Insurance Fund (75-0515-0-1-551).CommentsClose CommentsPermalink





‘Commodity Supplemental Food Program (12-3507-0-1-605).CommentsClose CommentsPermalink





‘Contingency Fund (75-1522-0-1-609).CommentsClose CommentsPermalink





‘Family Support Programs (75-1501-0-1-609).CommentsClose CommentsPermalink





‘Federal Pell Grants under section 401 Title IV of the Higher Education Act.CommentsClose CommentsPermalink





‘Grants to States for Medicaid (75-0512-0-1-551).CommentsClose CommentsPermalink





‘Payments for Foster Care and Permanency (75-1545-0-1-609).CommentsClose CommentsPermalink





‘Supplemental Nutrition Assistance Program (12-3505-0-1-605).CommentsClose CommentsPermalink





‘Supplemental Security Income Program (28-0406-0-1-609).CommentsClose CommentsPermalink





‘Temporary Assistance for Needy Families (75-1552-0-1-609).’.CommentsClose CommentsPermalink





(d) Economic Recovery Programs- Section 255 of BBEDCA is amended by adding the following after subsection (h):CommentsClose CommentsPermalink





‘(i) Economic Recovery Programs- The following programs shall be exempt from reduction under any order issued under this part:CommentsClose CommentsPermalink





‘All programs enacted in, or increases in programs provided by, the American Recovery and Reinvestment Act of 2009.CommentsClose CommentsPermalink





‘Exchange Stabilization Fund-Money Market Mutual Fund Guaranty Facility (20-4274-0-3-376).CommentsClose CommentsPermalink





‘Financial Stabilization Reserve (20-0131-4-1-376).CommentsClose CommentsPermalink





‘GSE Mortgage-Backed Securities Purchase Program Account (20-0126-0-1-371).CommentsClose CommentsPermalink





‘GSE Preferred Stock Purchase Agreements (20-0125-0-1-371).CommentsClose CommentsPermalink





‘Office of Financial Stability (20-0128-0-1-376).CommentsClose CommentsPermalink





‘Special Inspector General for the Troubled Asset Relief Program (20-0133-0-1-376).CommentsClose CommentsPermalink





‘Troubled Asset Relief Program Account (20-0132-0-1-376).CommentsClose CommentsPermalink





‘Troubled Asset Relief Program Equity Purchase Program (20-0134-0-1-376).CommentsClose CommentsPermalink





‘Troubled Asset Relief Program, Home Affordable Modification Program (20-0136-0-1-604).’.CommentsClose CommentsPermalink

Passed the House of Representatives July 22, 2009.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk.

111th CONGRESS

1st Session

H. R. 2920

AN ACT

To reinstitute and update the Pay-As-You-Go requirement of budget neutrality on new tax and mandatory spending legislation, enforced by the threat of annual, automatic sequestration LORRAINE C. MILLER, CommentsClose CommentsPermalink

Clerk.CommentsClose CommentsPermalink