In the House of Representatives, U. S.

,
August 1, 2011. Resolved, That the bill from the Senate (S. 365) entitled An Act to make a technical amendment to the Education Sciences Reform Act of 2002., do pass with the following:

AMENDMENT:
Strike all after the enacting clause and insert the following: 1 2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.This Act may be cited as the

3 Budget Control Act of 2011. 4 (b) TABLE

OF

CONTENTS.The table of contents for

5 this Act is as follows:

Sec. 1. Short title; table of contents. Sec. 2. Severability. TITLE ITEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER Sec. Sec. Sec. Sec. Sec. Enforcing discretionary spending limits. Definitions. Reports and orders. Expiration. Amendments to the Congressional Budget and Impoundment Control Act of 1974. Sec. 106. Senate budget enforcement. TITLE IIVOTE ON THE BALANCED BUDGET AMENDMENT Sec. 201. Vote on the balanced budget amendment. Sec. 202. Consideration by the other House. TITLE IIIDEBT CEILING DISAPPROVAL PROCESS Sec. 301. Debt ceiling disapproval process. Sec. 302. Enforcement of budget goal. 101. 102. 103. 104. 105.

2
TITLE IVJOINT SELECT COMMITTEE ON DEFICIT REDUCTION Sec. Sec. Sec. Sec. 401. 402. 403. 404. Establishment of Joint Select Committee. Expedited consideration of joint committee recommendations. Funding. Rulemaking.

TITLE VPELL GRANT AND STUDENT LOAN PROGRAM CHANGES Sec. 501. Federal Pell grants. Sec. 502. Termination of authority to make interest subsidized loans to graduate and professional students. Sec. 503. Termination of direct loan repayment incentives. Sec. 504. Inapplicability of title IV negotiated rulemaking and master calendar exception.

1 2

SEC. 2. SEVERABILITY.

If any provision of this Act, or any application of such

3 provision to any person or circumstance, is held to be un4 constitutional, the remainder of this Act and the applica5 tion of this Act to any other person or circumstance shall 6 not be affected. 7 8 9 10 11

TITLE ITEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

SEC. 101. ENFORCING DISCRETIONARY SPENDING LIMITS.

Section 251 of the Balanced Budget and Emergency

12 Deficit Control Act of 1985 is amended to read as follows: 13 14 15 16 17 18

SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS.

(a) ENFORCEMENT. (1) SEQUESTRATION.Within 15 calendar days after Congress adjourns to end a session there shall be a sequestration to eliminate a budget-year breach, if any, within any category.

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3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (2) ELIMINATING
A BREACH.Each

non-exempt

account within a category shall be reduced by a dollar amount calculated by multiplying the enacted level of sequestrable budgetary resources in that account at that time by the uniform percentage necessary to eliminate a breach within that category. (3) MILITARY
PERSONNEL.If

the President

uses the authority to exempt any personnel account from sequestration under section 255(f), each account within subfunctional category 051 (other than those military personnel accounts for which the authority provided under section 255(f) 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

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4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (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 for that account. (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) ESTIMATES.

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5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (A) CBO
ESTIMATES.As

soon as prac-

ticable 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. (B) OMB
ESTIMATES AND EXPLANATION

OF DIFFERENCES.Not

later than 7 calendar

days (excluding Saturdays, Sundays, and legal holidays) after the date of 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 2 estimates. If during the preparation of the report OMB determines that there is a significant difference between OMB and CBO, OMB shall consult with the Committees on the Budget of the House of

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6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Representatives and the Senate regarding that difference and that consultation shall include, to the extent practicable, written communication to those committees that affords such committees the opportunity to comment before the issuance of the report. (C) ASSUMPTIONS
AND GUIDELINES.

OMB estimates under this paragraph shall be made using current economic and technical assumptions. OMB shall use the OMB estimates transmitted to the Congress under this paragraph. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the Committees on the Budget of the House of Representatives and the Senate, CBO, and OMB. (D) ANNUAL
APPROPRIATIONS.For

pur-

poses of this paragraph, amounts provided by annual appropriations shall include any discretionary appropriations for the current year, if any, and the budget year in accounts for which funding is provided in that legislation that result from previously enacted legislation.

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7 1 (b) ADJUSTMENTS
TO

DISCRETIONARY SPENDING

2 LIMITS. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) CONCEPTS

AND DEFINITIONS.When

the

President submits the budget under section 1105 of title 31, United States Code, OMB shall calculate and the budget shall include adjustments to discretionary spending limits (and those limits as cumulatively adjusted) for the budget year and each outyear to reflect changes in concepts and definitions. Such changes 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 changes may only be made after consultation with the Committees on Appropriations and the Budget of the House of Representatives and the Senate, and that consultation shall include written communication to such committees that affords such committees the opportunity to comment before official action is taken with respect to such changes. (2) SEQUESTRATION
REPORTS.When

OMB

submits a sequestration report under section 254(e), (f), or (g) for a fiscal year, OMB shall calculate, and the sequestration report and subsequent budgets submitted by the President under section 1105(a) of title

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8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 31, United States Code, shall include adjustments to discretionary spending limits (and those limits as adjusted) for the fiscal year and each succeeding year, as follows: (A) EMERGENCY
APPROPRIATIONS; OVER-

SEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM.If,

for any fiscal year, appropria-

tions for discretionary accounts are enacted that (i) the Congress designates as emergency requirements in statute on an account by account basis and the President subsequently so designates, or (ii) the Congress designates for Overseas Contingency Operations/Global War on Terrorism in statute on an account by account basis and the President subsequently so designates, the adjustment shall be the total of such appropriations in discretionary accounts designated as emergency requirements or for Overseas Contingency Operations/Global War on Terrorism, as applicable. (B) CONTINUING
DISABILITY REVIEWS AND

REDETERMINATIONS.(i)

If a bill or joint reso-

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9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 lution making appropriations for a fiscal year is enacted that specifies an amount for continuing disability reviews under titles II and XVI of the Social Security Act and for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, then the adjustments for that fiscal year shall be the additional new budget authority provided in that Act for such expenses for that fiscal year, but shall not exceed (I) for fiscal year 2012, $623,000,000 in additional new budget authority; (II) for fiscal year 2013,

$751,000,000 in additional new budget authority; (III) for fiscal year 2014,

$924,000,000 in additional new budget authority; (IV) for fiscal year 2015,

$1,123,000,000 in additional new budget authority; (V) for fiscal year 2016,

$1,166,000,000 in additional new budget authority;

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10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (VI) for fiscal year 2017,

$1,309,000,000 in additional new budget authority; (VII) for fiscal year 2018,

$1,309,000,000 in additional new budget authority; (VIII) for fiscal year 2019,

$1,309,000,000 in additional new budget authority; (IX) for fiscal year 2020,

$1,309,000,000 in additional new budget authority; and (X) for fiscal year 2021,

$1,309,000,000 in additional new budget authority. (ii) As used in this subparagraph (I) the term continuing disability reviews means continuing disability reviews under sections 221(i) and 1614(a)(4) of the Social Security Act; (II) the term redetermination means redetermination of eligibility under sections 1611(c)(1) and 1614(a)(3)(H) of the Social Security Act; and

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11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (III) the term additional new budget authority means the amount provided for a fiscal year, in excess of $273,000,000, in an appropriation Act and specified to pay for the costs of continuing disability reviews and redeterminations under the heading Limitation on Administrative Expenses for the Social Security Administration. (C) HEALTH
CONTROL.(i) CARE FRAUD AND ABUSE

If a bill or joint resolution mak-

ing appropriations for a fiscal year is enacted that specifies an amount for the health care fraud abuse control program at the Department of Health and Human Services (75839307 571), then the adjustments for that fiscal year shall be the amount of additional new budget authority provided in that Act for such program for that fiscal year, but shall not exceed (I) for fiscal year 2012, $270,000,000 in additional new budget authority; (II) for fiscal year 2013,

$299,000,000 in additional new budget authority;

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12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (III) for fiscal year 2014,

$329,000,000 in additional new budget authority; (IV) for fiscal year 2015,

$361,000,000 in additional new budget authority; (V) for fiscal year 2016, $395,000,000 in additional new budget authority; (VI) for fiscal year 2017,

$414,000,000 in additional new budget authority; (VII) for fiscal year 2018,

$434,000,000 in additional new budget authority; (VIII) for fiscal year 2019,

$454,000,000 in additional new budget authority; (IX) for fiscal year 2020,

$475,000,000 in additional new budget authority; and (X) for fiscal year 2021, $496,000,000 in additional new budget authority. (ii) As used in this subparagraph, the term additional new budget authority means the amount provided for a fiscal year, in excess

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13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 of $311,000,000, in an appropriation Act and specified to pay for the costs of the health care fraud and abuse control program. (D) DISASTER
FUNDING.

(i) If, for fiscal years 2012 through 2021, appropriations for discretionary accounts are enacted that Congress designates as being for disaster relief in statute, the adjustment for a fiscal year shall be the total of such appropriations for the fiscal year in discretionary accounts designated as being for disaster relief, but not to exceed the total of (I) the average funding provided for disaster relief over the previous 10 years, excluding the highest and lowest years; and (II) the amount, for years when the enacted new discretionary budget authority designated as being for disaster relief for the preceding fiscal year was less than the average as calculated in subclause (I) for that fiscal year, that is the difference between the enacted amount and the allowable adjust-

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14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ment as calculated in such subclause for that fiscal year. (ii) OMB shall report to the Committees on Appropriations and Budget in each House the average calculated pursuant to clause (i)(II), not later than 30 days after the date of the enactment of the Budget Control Act of 2011. (iii) For the purposes of this subparagraph, the term disaster relief means activities carried out pursuant to a determination under section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)). (iv) Appropriations considered disaster relief under this subparagraph in a fiscal year shall not be eligible for adjustments under subparagraph (A) for the fiscal year. (c) DISCRETIONARY SPENDING LIMIT.As used in

21 this part, the term discretionary spending limit means 22 23 24 (1) with respect to fiscal year 2012 (A) for the security category,

$684,000,000,000 in new budget authority; and

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15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (B) for the nonsecurity category,

$359,000,000,000 in new budget authority; (2) with respect to fiscal year 2013 (A) for the security category,

$686,000,000,000 in new budget authority; and (B) for the nonsecurity category,

$361,000,000,000 in new budget authority; (3) with respect to fiscal year 2014, for the discretionary category, $1,066,000,000,000 in new budget authority; (4) with respect to fiscal year 2015, for the discretionary category, $1,086,000,000,000 in new budget authority; (5) with respect to fiscal year 2016, for the discretionary category, $1,107,000,000,000 in new budget authority; (6) with respect to fiscal year 2017, for the discretionary category, $1,131,000,000,000 in new budget authority; (7) with respect to fiscal year 2018, for the discretionary category, $1,156,000,000,000 in new budget authority; (8) with respect to fiscal year 2019, for the discretionary category, $1,182,000,000,000 in new budget authority;

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16 1 2 3 4 5 6 (9) with respect to fiscal year 2020, for the discretionary category, $1,208,000,000,000 in new budget authority; and (10) with respect to fiscal year 2021, for the discretionary category, $1,234,000,000,000 in new budget authority;

7 as adjusted in strict conformance with subsection (b).. 8 9

SEC. 102. DEFINITIONS.

Section 250(c) of the Balanced Budget and Emergency

10 Deficit Control Act of 1985 is amended as follows: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) Strike paragraph (4) and insert the following new paragraph: (4)(A) The term nonsecurity category means all discretionary appropriations not included in the security category defined in subparagraph (B). (B) The term security category includes discretionary appropriations associated with agency budgets for the Department of Defense, the Department of Homeland Security, the Department of Veterans Affairs, the National Nuclear Security Administration, the intelligence community management account (95 040101054), and all budget accounts in budget function 150 (international affairs). (C) The term discretionary category includes all discretionary appropriations..

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17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (2) In paragraph (8)(C), strike the food stamp program and insert the Supplemental Nutrition Assistance Program. (3) Strike paragraph (14) and insert the following new paragraph: (14) The term outyear means a fiscal year one or more years after the budget year.. (4) At the end, add the following new paragraphs: (20) The term emergency means a situation that (A) requires new budget authority and outlays (or new budget authority and the outlays flowing therefrom) for the prevention or mitigation of, or response to, loss of life or property, or a threat to national security; and (B) is unanticipated. (21) The term unanticipated means that the underlying situation is (A) sudden, which means quickly coming into being or not building up over time; (B) urgent, which means a pressing and compelling need requiring immediate action; (C) unforeseen, which means not predicted or anticipated as an emerging need; and

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18 1 2 3 4 (D) temporary, which means not of a permanent duration..

SEC. 103. REPORTS AND ORDERS.

Section 254 of the Balanced Budget and Emergency

5 Deficit Control Act of 1985 is amended as follows: 6 7 8 9 10 11 12 13 14 15 16 17 (1) In subsection (c)(2), strike 2002 and insert 2021. (2) At the end of subsection (e), insert This report shall also contain a preview estimate of the adjustment for disaster funding for the upcoming fiscal year.. (3) In subsection (f)(2)(A), strike 2002 and insert 2021; before the concluding period insert , including a final estimate of the adjustment for disaster funding.
SEC. 104. EXPIRATION.

(a) REPEALER.Section 275 of the Balanced Budget

18 and Emergency Deficit Control Act of 1985 is repealed. 19 (b) CONFORMING CHANGE.Sections 252(d)(1),

20 254(c), 254(f)(3), and 254(i) of the Balanced Budget and 21 Emergency Deficit Control Act of 1985 shall not apply to 22 the Congressional Budget Office.

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19 1 2 3
SEC. 105. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974.

(a) ADJUSTMENTS.Section 314 of the Congressional

4 Budget Act of 1974 is amended as follows: 5 6 (1) Strike subsection (a) and insert the following: (a) ADJUSTMENTS.After the reporting of a bill or

7 joint resolution or the offering of an amendment thereto or 8 the submission of a conference report thereon, the chairman 9 of the Committee on the Budget of the House of Representa10 tives or the Senate may make appropriate budgetary ad11 justments of new budget authority and the outlays flowing 12 therefrom in the same amount as required by section 251(b) 13 of the Balanced Budget and Emergency Deficit Control Act 14 of 1985.. 15 16 17 18 19 20 21 (2) Strike subsections (b) and (e) and redesignate subsections (c) and (d) as subsections (b) and (c), respectively. (3) At the end, add the following new subsections: (d) EMERGENCIES
TIVES. IN THE

HOUSE

OF

REPRESENTA-

(1) In the House of Representatives, if a reported

22 bill or joint resolution, or amendment thereto or conference 23 report thereon, contains a provision providing new budget 24 authority and outlays or reducing revenue, and a designa25 tion of such provision as an emergency requirement pursu26 ant to 251(b)(2)(A) of the Balanced Budget and Emergency
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20 1 Deficit Control Act of 1985, the chair of the Committee on 2 the Budget of the House of Representatives shall not count 3 the budgetary effects of such provision for purposes of title 4 III and title IV of the Congressional Budget Act of 1974 5 and the Rules of the House of Representatives. 6 (2)(A) In the House of Representatives, if a reported

7 bill or joint resolution, or amendment thereto or conference 8 report thereon, contains a provision providing new budget 9 authority and outlays or reducing revenue, and a designa10 tion of such provision as an emergency pursuant to para11 graph (1), the chair of the Committee on the Budget shall 12 not count the budgetary effects of such provision for pur13 poses of this title and title IV and the Rules of the House 14 of Representatives. 15 (B) In the House of Representatives, a proposal to

16 strike a designation under subparagraph (A) shall be ex17 cluded from an evaluation of budgetary effects for purposes 18 of this title and title IV and the Rules of the House of Rep19 resentatives. 20 (C) An amendment offered under subparagraph (B)

21 that also proposes to reduce each amount appropriated or 22 otherwise made available by the pending measure that is 23 not required to be appropriated or otherwise made available 24 shall be in order at any point in the reading of the pending 25 measure.

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21 1 (e) ENFORCEMENT
OF

DISCRETIONARY SPENDING

2 CAPS.It shall not be in order in the House of Representa3 tives or the Senate to consider any bill, joint resolution, 4 amendment, motion, or conference report that would cause 5 the discretionary spending limits as set forth in section 251 6 of the Balanced Budget and Emergency Deficit Control Act 7 to be exceeded.. 8 (b) DEFINITIONS.Section 3 of the Congressional

9 Budget and Impoundment Control Act of 1974 is amended 10 by adding at the end the following new paragraph: 11 12 13 14 15 (11) The terms emergency and unanticipated have the meanings given to such terms in section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985.. (c) APPEALS
FOR

DISCRETIONARY CAPS.Section

16 904(c)(2) of the Congressional Budget Act of 1974 is amend17 ed by striking and 312(c) and inserting 312(c), and 18 314(e). 19 20 21 22 23 24 25
SEC. 106. SENATE BUDGET ENFORCEMENT.

(a) IN GENERAL. (1) For the purpose of enforcing the Congressional Budget Act of 1974 through April 15, 2012, including section 300 of that Act, and enforcing budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, and levels

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22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 set in subsection (b)(1) shall apply in the Senate in the same manner as for a concurrent resolution on the budget for fiscal year 2012 with appropriate budgetary levels for fiscal years 2011 and 2013 through 2021. (2) For the purpose of enforcing the Congressional Budget Act of 1974 after April 15, 2012, including section 300 of that Act, and enforcing budgetary points of order in prior concurrent resolutions on the budget, the allocations, aggregates, and levels set in subsection (b)(2) shall apply in the Senate in the same manner as for a concurrent resolution on the budget for fiscal year 2013 with appropriate budgetary levels for fiscal years 2012 and 2014 through 2022. (b) COMMITTEE ALLOCATIONS, AGGREGATES,
AND

17 LEVELS. 18 19 20 21 22 23 24 (1) As soon as practicable after the date of enactment of this section, the Chairman of the Committee on the Budget shall file (A) for the Committee on Appropriations, committee allocations for fiscal years 2011 and 2012 consistent with the discretionary spending limits set forth in this Act for the purpose of en-

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23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 forcing section 302 of the Congressional Budget Act of 1974; (B) for all committees other than the Committee on Appropriations, committee allocations for fiscal years 2011, 2012, 2012 through 2016, and 2012 through 2021 consistent with the Congressional Budget Offices March 2011 baseline adjusted to account for the budgetary effects of this Act and legislation enacted prior to this Act but not included in the Congressional Budget Offices March 2011 baseline, for the purpose of enforcing section 302 of the Congressional Budget Act of 1974; (C) aggregate spending levels for fiscal years 2011 and 2012 and aggregate revenue levels for fiscal years 2011, 2012, 2012 through 2016, 2012 through 2021 consistent with the Congressional Budget Offices March 2011 baseline adjusted to account for the budgetary effects of this Act and legislation enacted prior to this Act but not included in the Congressional Budget Offices March 2011 baseline, and the discretionary spending limits set forth in this Act for the purpose of enforcing section 311 of the Congressional Budget Act of 1974; and

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24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (D) levels of Social Security revenues and outlays for fiscal years 2011, 2012, 2012 through 2016, and 2012 through 2021 consistent with the Congressional Budget Offices March 2011 baseline adjusted to account for the budgetary effects of this Act and legislation enacted prior to this Act but not included in the Congressional Budget Offices March 2011 baseline, for the purpose of enforcing sections 302 and 311 of the Congressional Budget Act of 1974. (2) Not later than April 15, 2012, the Chairman of the Committee on the Budget shall file (A) for the Committee on Appropriations, committee allocations for fiscal years 2012 and 2013 consistent with the discretionary spending limits set forth in this Act for the purpose of enforcing section 302 of the Congressional Budget Act of 1974; (B) for all committees other than the Committee on Appropriations, committee allocations for fiscal years 2012, 2013, 2013 through 2017, and 2013 through 2022 consistent with the Congressional Budget Offices March 2012 baseline for the purpose of enforcing section 302 of the Congressional Budget Act of 1974;

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25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (C) aggregate spending levels for fiscal years 2012 and 2013 and aggregate revenue levels for fiscal years 2012, 2013, 20132017, and 2013 2022 consistent with the Congressional Budget Offices March 2012 baseline and the discretionary spending limits set forth in this Act for the purpose of enforcing section 311 of the Congressional Budget Act of 1974; and (D) levels of Social Security revenues and outlays for fiscal years 2012 and 2013, 2013 2017, and 20132022 consistent with the Congressional Budget Offices March 2012 baseline budget for the purpose of enforcing sections 302 and 311 of the Congressional Budget Act of 1974. (c) SENATE PAY-AS-YOU-GO SCORECARD. (1) Effective on the date of enactment of this section, for the purpose of enforcing section 201 of S. Con. Res. 21 (110th Congress), the Chairman of the Senate Committee on the Budget shall reduce any balances of direct spending and revenues for any fiscal year to 0 (zero). (2) Not later than April 15, 2012, for the purpose of enforcing section 201 of S. Con. Res. 21 (110th Congress), the Chairman of the Senate Com-

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26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 mittee on the Budget shall reduce any balances of direct spending and revenues for any fiscal year to 0 (zero). (3) Upon resetting the Senate paygo scorecard pursuant to paragraph (2), the Chairman shall publish a notification of such action in the Congressional Record. (d) FURTHER ADJUSTMENTS. (1) The Chairman of the Committee on the Budget of the Senate may revise any allocations, aggregates, or levels set pursuant to this section to account for any subsequent adjustments to discretionary spending limits made pursuant to this Act. (2) With respect to any allocations, aggregates, or levels set or adjustments made pursuant to this section, sections 412 through 414 of S. Con. Res. 13 (111th Congress) shall remain in effect. (e) EXPIRATION. (1) Subsections (a)(1), (b)(1), and (c)(1) shall expire if a concurrent resolution on the budget for fiscal year 2012 is agreed to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget Act of 1974. (2) Subsections (a)(2), (b)(2), and (c)(2) shall expire if a concurrent resolution on the budget for fis-

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27 1 2 3 4 5 6 7 cal year 2013 is agreed to by the Senate and House of Representatives pursuant to section 301 of the Congressional Budget Act of 1974.

TITLE IIVOTE ON THE BALANCED BUDGET AMENDMENT

SEC. 201. VOTE ON THE BALANCED BUDGET AMENDMENT.

After September 30, 2011, and not later than December

8 31, 2011, the House of Representatives and Senate, respec9 tively, shall vote on passage of a joint resolution, the title 10 of which is as follows: Joint resolution proposing a bal11 anced budget amendment to the Constitution of the United 12 States.. 13 14 15 16 17 18 19 20 21 22 23 24 25
SEC. 202. CONSIDERATION BY THE OTHER HOUSE.

(a) HOUSE CONSIDERATION. (1) REFERRAL.If the House receives a joint resolution described in section 201 from the Senate, such joint resolution shall be referred to the Committee on the Judiciary. If the committee fails to report the joint resolution within five legislative days, it shall be in order to move that the House discharge the committee from further consideration of the joint resolution. Such a motion shall not be in order after the House has disposed of a motion to discharge the joint resolution. The previous question shall be considered as ordered on the motion to its adoption without

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28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 intervening motion except twenty minutes of debate equally divided and controlled by the proponent and an opponent. If such a motion is adopted, the House shall proceed immediately to consider the joint resolution in accordance with paragraph (3). A motion to reconsider the vote by which the motion is disposed of shall not be in order. (2) PROCEEDING
TO CONSIDERATION.After

the

joint resolution has been referred to the appropriate calendar or the committee has been discharged (other than by motion) from its consideration, it shall be in order to move to proceed to consider the joint resolution in the House. Such a motion shall not be in order after the House has disposed of a motion to proceed with respect to the joint resolution. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. A motion to reconsider the vote by which the motion is disposed of shall not be in order. (3) CONSIDERATION.The joint resolution shall be considered as read. All points of order against the joint resolution and against its consideration are waived. The previous question shall be considered as ordered on the joint resolution to its passage without intervening motion except two hours of debate equally

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29 1 2 3 4 5 divided and controlled by the proponent and an opponent and one motion to limit debate on the joint resolution. A motion to reconsider the vote on passage of the joint resolution shall not be in order. (b) SENATE CONSIDERATION.(1) If the Senate re-

6 ceives a joint resolution described in section 201 from the 7 House of Representatives, such joint resolution shall be re8 ferred to the appropriate committee of the Senate. If such 9 committee has not reported the joint resolution at the close 10 of the fifth session day after its receipt by the Senate, such 11 committee shall be automatically discharged from further 12 consideration of the joint resolution and it shall be placed 13 on the appropriate calendar. 14 (2) Consideration of the joint resolution and on all de-

15 batable motions and appeals in connection therewith, shall 16 be limited to not more than 20 hours, which shall be divided 17 equally between the majority and minority leaders or their 18 designees. A motion further to limit debate is in order and 19 not debatable. An amendment to, or a motion to postpone, 20 or a motion to proceed to the consideration of other busi21 ness, or a motion to recommit the joint resolution is not 22 in order. Any debatable motion or appeal is debatable for 23 not to exceed 1 hour, to be divided equally between those 24 favoring and those opposing the motion or appeal. All time 25 used for consideration of the joint resolution, including time

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30 1 used for quorum calls and voting, shall be counted against 2 the total 20 hours of consideration. 3 (3) If the Senate has voted to proceed to a joint resolu-

4 tion, the vote on passage of the joint resolution shall be 5 taken on or before the close of the seventh session day after 6 such joint resolution has been reported or discharged or im7 mediately following the conclusion of consideration of the 8 joint resolution, and a single quorum call at the conclusion 9 of the debate if requested in accordance with the rules of 10 the Senate. 11 12 13 14

TITLE IIIDEBT CEILING DISAPPROVAL PROCESS

SEC. 301. DEBT CEILING DISAPPROVAL PROCESS.

(a) IN GENERAL.Subchapter I of chapter 31 of sub-

15 title III of title 31, United States Code, is amended 16 17 18 19 (1) in section 3101(b), by striking or otherwise and inserting or as provided by section 3101A or otherwise; and (2) by inserting after section 3101 the following:

20 3101A. Presidential modification of the debt ceiling 21 22 23 24 25 (a) IN GENERAL. (1) $900
BILLION.

(A) CERTIFICATION.If, not later than December 31, 2011, the President submits a written certification to Congress that the Presi-

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31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 dent has determined that the debt subject to limit is within $100,000,000,000 of the limit in section 3101(b) and that further borrowing is required to meet existing commitments, the Secretary of the Treasury may exercise authority to borrow an additional $900,000,000,000, subject to the enactment of a joint resolution of disapproval enacted pursuant to this section. Upon submission of such certification, the limit on debt provided in section 3101(b) (referred to in this section as the debt limit) is increased by $400,000,000,000. (B) RESOLUTION
OF DISAPPROVAL.Con-

gress may consider a joint resolution of disapproval of the authority under subparagraph (A) as provided in subsections (b) through (f). The joint resolution of disapproval considered under this section shall contain only the language provided in subsection (b)(2). If the time for disapproval has lapsed without enactment of a joint resolution of disapproval under this section, the debt limit is increased by an additional $500,000,000,000. (2) ADDITIONAL
AMOUNT.

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32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (A) CERTIFICATION.If, after the debt limit is increased by $900,000,000,000 under paragraph (1), the President submits a written certification to Congress that the President has determined that the debt subject to limit is within $100,000,000,000 of the limit in section 3101(b) and that further borrowing is required to meet existing commitments, the Secretary of the Treasury may, subject to the enactment of a joint resolution of disapproval enacted pursuant to this section, exercise authority to borrow an additional amount equal to (i) $1,200,000,000,000, unless clause (ii) or (iii) applies; (ii) $1,500,000,000,000 if the Archivist of the United States has submitted to the States for their ratification a proposed amendment to the Constitution of the United States pursuant to a joint resolution entitled Joint resolution proposing a balanced budget amendment to the Constitution of the United States; or (iii) if a joint committee bill to achieve an amount greater than

$1,200,000,000,000 in deficit reduction as

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33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 provided in section 401(b)(3)(B)(i)(II) of the Budget Control Act of 2011 is enacted, an amount equal to the amount of that deficit reduction, but not greater than

$1,500,000,000,000, unless clause (ii) applies. (B) RESOLUTION

OF DISAPPROVAL.Con-

gress may consider a joint resolution of disapproval of the authority under subparagraph (A) as provided in subsections (b) through (f). The joint resolution of disapproval considered under this section shall contain only the language provided in subsection (b)(2). If the time for disapproval has lapsed without enactment of a joint resolution of disapproval under this section, the debt limit is increased by the amount authorized under subparagraph (A). (b) JOINT RESOLUTION OF DISAPPROVAL. (1) IN
GENERAL.Except

for

the

$400,000,000,000 increase in the debt limit provided by subsection (a)(1)(A), the debt limit may not be raised under this section if, within 50 calendar days after the date on which Congress receives a certification described in subsection (a)(1) or within 15 calendar days after Congress receives the certification de-

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34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 scribed in subsection (a)(2) (regardless of whether Congress is in session), there is enacted into law a joint resolution disapproving the Presidents exercise of authority with respect to such additional amount. (2) CONTENTS
OF JOINT RESOLUTION.For

the

purpose of this section, the term joint resolution means only a joint resolution (A)(i) for the certification described in subsection (a)(1), that is introduced on September 6, 7, 8, or 9, 2011 (or, if the Senate was not in session, the next calendar day on which the Senate is in session); and (ii) for the certification described in subsection (a)(2), that is introduced between the date the certification is received and 3 calendar days after that date; (B) which does not have a preamble; (C) the title of which is only as follows: Joint resolution relating to the disapproval of the Presidents exercise of authority to increase the debt limit, as submitted under section 3101A of title 31, United States Code, on

llllll (with the blank containing the date of such submission); and

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35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (D) the matter after the resolving clause of which is only as follows: That Congress disapproves of the Presidents exercise of authority to increase the debt limit, as exercised pursuant to the certification under section 3101A(a) of title 31, United States Code.. (c) EXPEDITED CONSIDERATION
RESENTATIVES. IN

HOUSE

OF

REP-

(1) RECONVENING.Upon receipt of a certification described in subsection (a)(2), the Speaker, if the House would otherwise be adjourned, shall notify the Members of the House that, pursuant to this section, the House shall convene not later than the second calendar day after receipt of such certification. (2) REPORTING
AND DISCHARGE.Any

com-

mittee of the House of Representatives to which a joint resolution is referred shall report it to the House without amendment not later than 5 calendar days after the date of introduction of a joint resolution described in subsection (a). If a committee fails to report the joint resolution within that period, the committee shall be discharged from further consideration of the joint resolution and the joint resolution shall be referred to the appropriate calendar.

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36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (3) PROCEEDING
TO CONSIDERATION.After

each committee authorized to consider a joint resolution reports it to the House or has been discharged from its consideration, it shall be in order, not later than the sixth day after introduction of a joint resolution under subsection (a), to move to proceed to consider the joint resolution in the House. All points of order against the motion are waived. Such a motion shall not be in order after the House has disposed of a motion to proceed on a joint resolution addressing a particular submission. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. The motion shall not be debatable. A motion to reconsider the vote by which the motion is disposed of shall not be in order. (4) CONSIDERATION.The joint resolution shall be considered as read. All points of order against the joint resolution and against its consideration are waived. The previous question shall be considered as ordered on the joint resolution to its passage without intervening motion except two hours of debate equally divided and controlled by the proponent and an opponent. A motion to reconsider the vote on passage of the joint resolution shall not be in order. (d) EXPEDITED PROCEDURE IN SENATE.

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37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) RECONVENING.Upon receipt of a certification under subsection (a)(2), if the Senate has adjourned or recessed for more than 2 days, the majority leader of the Senate, after consultation with the minority leader of the Senate, shall notify the Members of the Senate that, pursuant to this section, the Senate shall convene not later than the second calendar day after receipt of such message. (2) PLACEMENT
ON CALENDAR.Upon

intro-

duction in the Senate, the joint resolution shall be immediately placed on the calendar. (3) FLOOR
CONSIDERATION. GENERAL.Notwithstanding

(A) IN

Rule

XXII of the Standing Rules of the Senate, it is in order at any time during the period beginning on the day after the date on which Congress receives a certification under subsection (a) and, for the certification described in subsection (a)(1), ending on September 14, 2011, and for the certification described in subsection (a)(2), on the 6th day after the date on which Congress receives a certification under subsection (a) (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the joint resolution, and all points

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38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion to proceed is not debatable. The motion is not subject to a motion to postpone. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the resolution is agreed to, the joint resolution shall remain the unfinished business until disposed of. (B) CONSIDERATION.Consideration of

the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between the majority and minority leaders or their designees. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order. (C) VOTE
ON PASSAGE.If

the Senate has

voted to proceed to a joint resolution, the vote on passage of the joint resolution shall occur immediately following the conclusion of consideration

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39 1 2 3 4 5 6 7 8 9 10 of the joint resolution, and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate. (D) RULINGS
DURE.Appeals OF THE CHAIR ON PROCE-

from the decisions of the Chair

relating to the application of the rules of the Senate, as the case may be, to the procedure relating to a joint resolution shall be decided without debate. (e) AMENDMENT NOT
IN

ORDER.A joint resolution

11 of disapproval considered pursuant to this section shall not 12 be subject to amendment in either the House of Representa13 tives or the Senate. 14 (f) COORDINATION WITH ACTION
BY

OTHER

15 HOUSE. 16 17 18 19 20 21 22 23 24 (1) IN
GENERAL.If,

before passing the joint

resolution, one House receives from the other a joint resolution (A) the joint resolution of the other House shall not be referred to a committee; and (B) the procedure in the receiving House shall be the same as if no joint resolution had been received from the other House until the vote on passage, when the joint resolution received

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40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 from the other House shall supplant the joint resolution of the receiving House. (2) TREATMENT
OTHER HOUSE.If OF JOINT RESOLUTION OF

the Senate fails to introduce or

consider a joint resolution under this section, the joint resolution of the House shall be entitled to expedited floor procedures under this section. (3) TREATMENT
OF COMPANION MEASURES.If,

following passage of the joint resolution in the Senate, the Senate then receives the companion measure from the House of Representatives, the companion measure shall not be debatable. (4) CONSIDERATION
AFTER PASSAGE.(A)

If

Congress passes a joint resolution, the period beginning on the date the President is presented with the joint resolution and ending on the date the President signs, allows to become law without his signature, or vetoes and returns the joint resolution (but excluding days when either House is not in session) shall be disregarded in computing the appropriate calendar day period described in subsection (b)(1). (B) Debate on a veto message in the Senate under this section shall be 1 hour equally divided between the majority and minority leaders or their designees.

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41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (5) VETO
OVERRIDE.If

within the appro-

priate calendar day period described in subsection (b)(1), Congress overrides a veto of the joint resolution with respect to authority exercised pursuant to paragraph (1) or (2) of subsection (a), the limit on debt provided in section 3101(b) shall not be raised, except for the $400,000,000,000 increase in the limit provided by subsection (a)(1)(A). (6) SEQUESTRATION.(A) If within the 50-calendar day period described in subsection (b)(1), the President signs the joint resolution, the President allows the joint resolution to become law without his signature, or Congress overrides a veto of the joint resolution with respect to authority exercised pursuant to paragraph (1) of subsection (a), there shall be a sequestration to reduce spending by

$400,000,000,000. OMB shall implement the sequestration forthwith. (B) OMB shall implement each half of such sequestration in accordance with section 255, section 256, and subsections (c), (d), (e), and (f) of section 253 of the Balanced Budget and Emergency Deficit Control Act of 1985, and for the purpose of such implementation the term excess deficit means the amount specified in subparagraph (A).

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42 1 (g) RULES
OF

HOUSE

OF

REPRESENTATIVES

AND

2 SENATE.This subsection and subsections (b), (c), (d), (e), 3 and (f) (other than paragraph (6)) are enacted by Con4 gress 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution, and it supersedes other rules only to the extent that it is inconsistent with such rules; and (2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.. (b) CONFORMING AMENDMENT.The table of sections

19 for chapter 31 of title 31, United States Code, is amended 20 by inserting after the item relating to section 3101 the fol21 lowing new item:
3101A. Presidential modification of the debt ceiling..

22 23

SEC. 302. ENFORCEMENT OF BUDGET GOAL.

(a) IN GENERAL.The Balanced Budget and Emer-

24 gency Deficit Control Act of 1985 is amended by inserting 25 after section 251 the following new section:
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43 1 2
SEC. 251A. ENFORCEMENT OF BUDGET GOAL.

Unless a joint committee bill achieving an amount

3 greater than $1,200,000,000,000 in deficit reduction as pro4 vided in section 401(b)(3)(B)(i)(II) of the Budget Control 5 Act of 2011 is enacted by January 15, 2012, the discre6 tionary spending limits listed in section 251(c) shall be re7 vised, and discretionary appropriations and direct spend8 ing shall be reduced, as follows: 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) REVISED
SECURITY CATEGORY; REVISED

NONSECURITY CATEGORY.(A)

The term revised se-

curity category means discretionary appropriations in budget function 050. (B) The term revised nonsecurity category means discretionary appropriations other than in budget function 050. (2) REVISED
ITS.The DISCRETIONARY SPENDING LIM-

discretionary spending limits for fiscal

years 2013 through 2021 under section 251(c) shall be replaced with the following: (A) For fiscal year 2013 (i) for the security category,

$546,000,000,000 in budget authority; and (ii) for the nonsecurity category, $501,000,000,000 in budget authority. (B) For fiscal year 2014

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44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (i) for the security category,

$556,000,000,000 in budget authority; and (ii) for the nonsecurity category, $510,000,000,000 in budget authority. (C) For fiscal year 2015 (i) for the security category,

$566,000,000,000 in budget authority; and (ii) for the nonsecurity category, $520,000,000,000 in budget authority. (D) For fiscal year 2016 (i) for the security category,

$577,000,000,000 in budget authority; and (ii) for the nonsecurity category, $530,000,000,000 in budget authority. (E) For fiscal year 2017 (i) for the security category,

$590,000,000,000 in budget authority; and (ii) for the nonsecurity category, $541,000,000,000 in budget authority. (F) For fiscal year 2018 (i) for the security category,

$603,000,000,000 in budget authority; and (ii) for the nonsecurity category, $553,000,000,000 in budget authority. (G) For fiscal year 2019

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45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (i) for the security category,

$616,000,000,000 in budget authority; and (ii) for the nonsecurity category, $566,000,000,000 in budget authority. (H) For fiscal year 2020 (i) for the security category,

$630,000,000,000 in budget authority; and (ii) for the nonsecurity category, $578,000,000,000 in budget authority. (I) For fiscal year 2021 (i) for the security category,

$644,000,000,000 in budget authority; and (ii) for the nonsecurity category, $590,000,000,000 in budget authority. (3) CALCULATION
TION.OMB OF TOTAL DEFICIT REDUC-

shall calculate the amount of the deficit

reduction required by this section for each of fiscal years 2013 through 2021 by (A) starting with $1,200,000,000,000; (B) subtracting the amount of deficit reduction achieved by the enactment of a joint committee bill, as provided in section

401(b)(3)(B)(i)(II) of the Budget Control Act of 2011;

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46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (C) reducing the difference by 18 percent to account for debt service; and (D) dividing the result by 9. (4) ALLOCATION
TO FUNCTIONS.On

January

2, 2013, for fiscal year 2013, and in its sequestration preview report for fiscal years 2014 through 2021 pursuant to section 254(c), OMB shall allocate half of the total reduction calculated pursuant to paragraph (3) for that year to discretionary appropriations and direct spending accounts within function 050 (defense function) and half to accounts in all other functions (nondefense functions). (5) DEFENSE
FUNCTION REDUCTION.OMB

shall calculate the reductions to discretionary appropriations and direct spending for each of fiscal years 2013 through 2021 for defense function spending as follows: (A) DISCRETIONARY.OMB shall cal-

culate the reduction to discretionary appropriations by (i) taking the total reduction for the defense function allocated for that year under paragraph (4);

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47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (ii) multiplying by the discretionary spending limit for the revised security category for that year; and (iii) dividing by the sum of the discretionary spending limit for the security category and OMBs baseline estimate of nonexempt outlays for direct spending programs within the defense function for that year. (B) DIRECT
SPENDING.OMB

shall cal-

culate the reduction to direct spending by taking the total reduction for the defense function required for that year under paragraph (4) and subtracting the discretionary reduction calculated pursuant to subparagraph (A). (6) NONDEFENSE
FUNCTION REDUCTION.

OMB shall calculate the reduction to discretionary appropriations and to direct spending for each of fiscal years 2013 through 2021 for programs in nondefense functions as follows: (A) DISCRETIONARY.OMB shall cal-

culate the reduction to discretionary appropriations by

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48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (i) taking the total reduction for nondefense functions allocated for that year under paragraph (4); (ii) multiplying by the discretionary spending limit for the revised nonsecurity category for that year; and (iii) dividing by the sum of the discretionary spending limit for the revised nonsecurity category and OMBs baseline estimate of nonexempt outlays for direct spending programs in nondefense functions for that year. (B) DIRECT
SPENDING.OMB

shall cal-

culate the reduction to direct spending programs by taking the total reduction for nondefense functions required for that year under paragraph (4) and subtracting the discretionary reduction calculated pursuant to subparagraph (A). (7) IMPLEMENTING
TIONS. DISCRETIONARY REDUC-

(A) FISCAL

YEAR 2013.On

January 2,

2013, for fiscal year 2013, OMB shall calculate and the President shall order a sequestration, effective upon issuance and under the procedures set forth in section 253(f), to reduce each account

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49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 within the security category or nonsecurity category by a dollar amount calculated by multiplying the baseline level of budgetary resources in that account at that time by a uniform percentage necessary to achieve (i) for the revised security category, an amount equal to the defense function discretionary reduction calculated pursuant to paragraph (5); and (ii) for the revised nonsecurity category, an amount equal to the nondefense function discretionary reduction calculated pursuant to paragraph (6). (B) FISCAL
YEARS 20142021.On

the date

of the submission of its sequestration preview report for fiscal years 2014 through 2021 pursuant to section 254(c) for each of fiscal years 2014 through 2021, OMB shall reduce the discretionary spending limit (i) for the revised security category by the amount of the defense function discretionary reduction calculated pursuant to paragraph (5); and (ii) for the revised nonsecurity category by the amount of the nondefense func-

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50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 tion discretionary reduction calculated pursuant to paragraph (6). (8) IMPLEMENTING

TIONS.On DIRECT SPENDING REDUC-

the date specified in paragraph (4) dur-

ing each applicable year, OMB shall prepare and the President shall order a sequestration, effective upon issuance, of nonexempt direct spending to achieve the direct spending reduction calculated pursuant to paragraphs (5) and (6). When implementing the sequestration of direct spending pursuant to this paragraph, OMB shall follow the procedures specified in section 6 of the Statutory Pay-As-You-Go Act of 2010, the exemptions specified in section 255, and the special rules specified in section 256, except that the percentage reduction for the Medicare programs specified in section 256(d) shall not be more than 2 percent for a fiscal year. (9) ADJUSTMENT
FOR MEDICARE.If

the per-

centage reduction for the Medicare programs would exceed 2 percent for a fiscal year in the absence of paragraph (8), OMB shall increase the reduction for all other discretionary appropriations and direct spending under paragraph (6) by a uniform percentage to a level sufficient to achieve the reduction required by paragraph (6) in the non-defense function.

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51 1 2 3 4 5 6 7 8 9 10 11 12 (10) IMPLEMENTATION
OF REDUCTIONS.Any

reductions imposed under this section shall be implemented in accordance with section 256(k). (11) REPORT.On the dates specified in paragraph (4), OMB shall submit a report to Congress containing information about the calculations required under this section, the adjusted discretionary spending limits, a listing of the reductions required for each nonexempt direct spending account, and any other data and explanations that enhance public understanding of this title and actions taken under it.. (b) CONFORMING AMENDMENT.The table of contents

13 set forth in section 250(a) of the Balanced Budget and 14 Emergency Deficit Control Act of 1985 is amended by in15 serting after the item relating to section 251 the following:
Sec. 251A. Enforcement of budget goal..

16 17 18 19 20 21 22 23 24 25

TITLE IVJOINT SELECT COMMITTEE ON DEFICIT REDUCTION

SEC. 401. ESTABLISHMENT OF JOINT SELECT COMMITTEE.

(a) DEFINITIONS.In this title: (1) JOINT

COMMITTEE.The

term joint com-

mittee means the Joint Select Committee on Deficit Reduction established under subsection (b)(1). (2) JOINT
COMMITTEE BILL.The

term joint

committee bill means a bill consisting of the proS 365 EAH

52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 posed legislative language of the joint committee recommended under subsection (b)(3)(B) and introduced under section 402(a). (b) ESTABLISHMENT OF JOINT SELECT COMMITTEE. (1) ESTABLISHMENT.There is established a joint select committee of Congress to be known as the Joint Select Committee on Deficit Reduction. (2) GOAL.The goal of the joint committee shall be to reduce the deficit by at least $1,500,000,000,000 over the period of fiscal years 2012 to 2021. (3) DUTIES. (A) IN
GENERAL. THE SHORT-TERM AND

(i) IMPROVING

LONG-TERM FISCAL IMBALANCE.The

joint

committee shall provide recommendations and legislative language that will significantly improve the short-term and longterm fiscal imbalance of the Federal Government. (ii) RECOMMENDATIONS
TEES.Not OF COMMIT-

later than October 14, 2011,

each committee of the House of Representatives and the Senate may transmit to the joint committee its recommendations for changes in law to reduce the deficit con-

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53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 sistent with the goal described in paragraph (2) for the joint committees consideration. (B) REPORT,
RECOMMENDATIONS, AND LEG-

ISLATIVE LANGUAGE.

(i) IN

GENERAL.Not

later than No-

vember 23, 2011, the joint committee shall vote on (I) a report that contains a detailed statement of the findings, conclusions, and recommendations of the joint committee and the estimate of the Congressional Budget Office required by paragraph (5)(D)(ii); and (II) proposed legislative language to carry out such recommendations as described in subclause (I), which shall include a statement of the deficit reduction achieved by the legislation over the period of fiscal years 2012 to 2021. Any change to the Rules of the House of Representatives or the Standing Rules of the Senate included in the report or legislative language shall be considered to be merely advisory.

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54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (ii) APPROVAL
OF REPORT AND LEGIS-

LATIVE LANGUAGE.The

report of the joint

committee and the proposed legislative language described in clause (i) shall require the approval of a majority of the members of the joint committee. (iii) ADDITIONAL
VIEWS.A

member

of the joint committee who gives notice of an intention to file supplemental, minority, or additional views at the time of final joint committee vote on the approval of the report and legislative language under clause (ii) shall be entitled to 3 calendar days in which to file such views in writing with the staff director of the joint committee. Such views shall then be included in the joint committee report and printed in the same volume, or part thereof, and their inclusion shall be noted on the cover of the report. In the absence of timely notice, the joint committee report may be printed and transmitted immediately without such views. (iv) TRANSMISSION
OF REPORT AND

LEGISLATIVE LANGUAGE.If

the report and

legislative language are approved by the

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55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 joint committee pursuant to clause (ii), then not later than December 2, 2011, the joint committee shall submit the joint committee report and legislative language described in clause (i) to the President, the Vice President, the Speaker of the House of Representatives, and the majority and minority Leaders of each House of Congress. (v) REPORT
AND LEGISLATIVE LAN-

GUAGE TO BE MADE PUBLIC.Upon

the ap-

proval or disapproval of the joint committee report and legislative language pursuant to clause (ii), the joint committee shall

promptly make the full report and legislative language, and a record of the vote, available to the public. (4) MEMBERSHIP. (A) IN
GENERAL.The

joint committee

shall be composed of 12 members appointed pursuant to subparagraph (B). (B) APPOINTMENT.Members of the joint committee shall be appointed as follows: (i) The majority leader of the Senate shall appoint three members from among Members of the Senate.

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56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (ii) The minority leader of the Senate shall appoint three members from among Members of the Senate. (iii) The Speaker of the House of Representatives shall appoint three members from among Members of the House of Representatives. (iv) The minority leader of the House of Representatives shall appoint three members from among Members of the House of Representatives. (C) CO-CHAIRS. (i) IN
GENERAL.There

shall be two

Co-Chairs of the joint committee. The majority leader of the Senate shall appoint one Co-Chair from among the members of the joint committee. The Speaker of the House of Representatives shall appoint the second Co-Chair from among the members of the joint committee. The Co-Chairs shall be appointed not later than 14 calendar days after the date of enactment of this Act. (ii) STAFF
DIRECTOR.The

Co-Chairs,

acting jointly, shall hire the staff director of the joint committee.

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57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (D) DATE.Members of the joint committee shall be appointed not later than 14 calendar days after the date of enactment of this Act. (E) PERIOD
OF APPOINTMENT.Members

shall be appointed for the life of the joint committee. Any vacancy in the joint committee shall not affect its powers, but shall be filled not later than 14 calendar days after the date on which the vacancy occurs, in the same manner as the original designation was made. If a member of the joint committee ceases to be a Member of the House of Representatives or the Senate, as the case may be, the member is no longer a member of the joint committee and a vacancy shall exist. (5) ADMINISTRATION. (A) IN
GENERAL.To

enable the joint com-

mittee to exercise its powers, functions, and duties, there are authorized to be disbursed by the Senate the actual and necessary expenses of the joint committee approved by the co-chairs, subject to the rules and regulations of the Senate. (B) EXPENSES.In carrying out its functions, the joint committee is authorized to incur expenses in the same manner and under the same conditions as the Joint Economic Com-

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58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 mittee is authorized by section 11 of Public Law 79304 (15 U.S.C. 1024 (d)). (C) QUORUM.Seven members of the joint committee shall constitute a quorum for purposes of voting, meeting, and holding hearings. (D) VOTING. (i) PROXY
VOTING.No

proxy voting

shall be allowed on behalf of the members of the joint committee. (ii) CONGRESSIONAL
ESTIMATES.The BUDGET OFFICE

Congressional Budget Of-

fice shall provide estimates of the legislation (as described in paragraph (3)(B)) in accordance with sections 308(a) and 201(f) of the Congressional Budget Act of 1974 (2 U.S.C. 639(a) and 601(f))(including estimates of the effect of interest payment on the debt). In addition, the Congressional Budget Office shall provide information on the budgetary effect of the legislation beyond the year 2021. The joint committee may not vote on any version of the report, recommendations, or legislative language unless such estimates are available for consideration by all members of the joint com-

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59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 mittee at least 48 hours prior to the vote as certified by the Co-Chairs. (E) MEETINGS. (i) INITIAL
MEETING.Not

later than

45 calendar days after the date of enactment of this Act, the joint committee shall hold its first meeting. (ii) AGENDA.The Co-Chairs of the joint committee shall provide an agenda to the joint committee members not less than 48 hours in advance of any meeting. (F) HEARINGS. (i) IN
GENERAL.The

joint committee

may, for the purpose of carrying out this section, hold such hearings, sit and act at such times and places, require attendance of witnesses and production of books, papers, and documents, take such testimony, receive such evidence, and administer such oaths as the joint committee considers advisable. (ii) HEARING
PROCEDURES AND RE-

SPONSIBILITIES OF CO-CHAIRS.

(I)

ANNOUNCEMENT.The

Co-

Chairs of the joint committee shall make a public announcement of the

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60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 date, place, time, and subject matter of any hearing to be conducted, not less than 7 days in advance of such hearing, unless the Co-Chairs determine that there is good cause to begin such hearing at an earlier date. (II) WRITTEN
STATEMENT.A

witness appearing before the joint committee shall file a written statement of proposed testimony at least 2 calendar days before the appearance of the witness, unless the requirement is waived by the Co-Chairs, following their determination that there is good cause for failure to comply with such requirement. (G) TECHNICAL
ASSISTANCE.Upon

writ-

ten request of the Co-Chairs, a Federal agency shall provide technical assistance to the joint committee in order for the joint committee to carry out its duties. (c) STAFF OF JOINT COMMITTEE. (1) IN
GENERAL.The

Co-Chairs of the joint

committee may jointly appoint and fix the compensation of staff as they deem necessary, within the guide-

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61 1 2 3 4 5 6 7 8 9 10 lines for employees of the Senate and following all applicable rules and employment requirements of the Senate. (2) ETHICAL
STANDARDS.Members

on the joint

committee who serve in the House of Representatives shall be governed by the ethics rules and requirements of the House. Members of the Senate who serve on the joint committee and staff of the joint committee shall comply with the ethics rules of the Senate. (d) TERMINATION.The joint committee shall termi-

11 nate on January 31, 2012. 12 13 14

SEC. 402. EXPEDITED CONSIDERATION OF JOINT COMMITTEE RECOMMENDATIONS.

(a) INTRODUCTION.If approved by the majority re-

15 quired by section 401(b)(3)(B)(ii), the proposed legislative 16 language submitted pursuant to section 401(b)(3)(B)(iv) 17 shall be introduced in the Senate (by request) on the next 18 day on which the Senate is in session by the majority leader 19 of the Senate or by a Member of the Senate designated by 20 the majority leader of the Senate and shall be introduced 21 in the House of Representatives (by request) on the next 22 legislative day by the majority leader of the House or by 23 a Member of the House designated by the majority leader 24 of the House.

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62 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (b) CONSIDERATION
TIVES. IN THE

HOUSE

OF

REPRESENTA-

(1) REFERRAL

AND REPORTING.Any

committee

of the House of Representatives to which the joint committee bill is referred shall report it to the House without amendment not later than December 9, 2011. If a committee fails to report the joint committee bill within that period, it shall be in order to move that the House discharge the committee from further consideration of the bill. Such a motion shall not be in order after the last committee authorized to consider the bill reports it to the House or after the House has disposed of a motion to discharge the bill. The previous question shall be considered as ordered on the motion to its adoption without intervening motion except 20 minutes of debate equally divided and controlled by the proponent and an opponent. If such a motion is adopted, the House shall proceed immediately to consider the joint committee bill in accordance with paragraphs (2) and (3). A motion to reconsider the vote by which the motion is disposed of shall not be in order. (2) PROCEEDING
TO CONSIDERATION.After

the

last committee authorized to consider a joint committee bill reports it to the House or has been dis-

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63 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 charged (other than by motion) from its consideration, it shall be in order to move to proceed to consider the joint committee bill in the House. Such a motion shall not be in order after the House has disposed of a motion to proceed with respect to the joint committee bill. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. A motion to reconsider the vote by which the motion is disposed of shall not be in order. (3) CONSIDERATION.The joint committee bill shall be considered as read. All points of order against the joint committee bill and against its consideration are waived. The previous question shall be considered as ordered on the joint committee bill to its passage without intervening motion except 2 hours of debate equally divided and controlled by the proponent and an opponent and one motion to limit debate on the joint committee bill. A motion to reconsider the vote on passage of the joint committee bill shall not be in order. (4) VOTE
ON PASSAGE.The

vote on passage of

the joint committee bill shall occur not later than December 23, 2011. (c) EXPEDITED PROCEDURE IN THE SENATE.

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64 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) COMMITTEE
CONSIDERATION.A

joint com-

mittee bill introduced in the Senate under subsection (a) shall be jointly referred to the committee or committees of jurisdiction, which committees shall report the bill without any revision and with a favorable recommendation, an unfavorable recommendation, or without recommendation, not later than December 9, 2011. If any committee fails to report the bill within that period, that committee shall be automatically discharged from consideration of the bill, and the bill shall be placed on the appropriate calendar. (2) MOTION
TO PROCEED.Notwithstanding

Rule XXII of the Standing Rules of the Senate, it is in order, not later than 2 days of session after the date on which a joint committee bill is reported or discharged from all committees to which it was referred, for the majority leader of the Senate or the majority leaders designee to move to proceed to the consideration of the joint committee bill. It shall also be in order for any Member of the Senate to move to proceed to the consideration of the joint committee bill at any time after the conclusion of such 2-day period. A motion to proceed is in order even though a previous motion to the same effect has been disagreed to. All points of order against the motion to proceed to

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65 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the joint committee bill are waived. The motion to proceed is not debatable. The motion is not subject to a motion to postpone. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint committee bill is agreed to, the joint committee bill shall remain the unfinished business until disposed of. (3) CONSIDERATION.All points of order against the joint committee bill and against consideration of the joint committee bill are waived. Consideration of the joint committee bill and of all debatable motions and appeals in connection therewith shall not exceed a total of 30 hours which shall be divided equally between the Majority and Minority Leaders or their designees. A motion further to limit debate on the joint committee bill is in order, shall require an affirmative vote of three-fifths of the Members duly chosen and sworn, and is not debatable. Any debatable motion or appeal is debatable for not to exceed 1 hour, to be divided equally between those favoring and those opposing the motion or appeal. All time used for consideration of the joint committee bill, including time used for quorum calls and voting, shall be counted against the total 30 hours of consideration.

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66 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 (4) NO
AMENDMENTS.An

amendment to the

joint committee bill, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint committee bill, is not in order. (5) VOTE
ON PASSAGE.If

the Senate has voted

to proceed to the joint committee bill, the vote on passage of the joint committee bill shall occur immediately following the conclusion of the debate on a joint committee bill, and a single quorum call at the conclusion of the debate if requested. The vote on passage of the joint committee bill shall occur not later than December 23, 2011. (6) RULINGS
OF THE CHAIR ON PROCEDURE.

Appeals from the decisions of the Chair relating to the application of the rules of the Senate, as the case may be, to the procedure relating to a joint committee bill shall be decided without debate. (d) AMENDMENT.The joint committee bill shall not

20 be subject to amendment in either the House of Representa21 tives or the Senate. 22 23 24 25 (e) CONSIDERATION BY THE OTHER HOUSE. (1) IN
GENERAL.If,

before passing the joint

committee bill, one House receives from the other a joint committee bill

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67 1 2 3 4 5 6 7 8 9 10 11 12 13 (A) the joint committee bill of the other House shall not be referred to a committee; and (B) the procedure in the receiving House shall be the same as if no joint committee bill had been received from the other House until the vote on passage, when the joint committee bill received from the other House shall supplant the joint committee bill of the receiving House. (2) REVENUE
MEASURE.This

subsection shall

not apply to the House of Representatives if the joint committee bill received from the Senate is a revenue measure. (f) RULES
TO

COORDINATE ACTION WITH OTHER

14 HOUSE. 15 16 17 18 19 20 21 22 23 24 25 (1) TREATMENT

OTHER HOUSE.If OF JOINT COMMITTEE BILL OF

the Senate fails to introduce or

consider a joint committee bill under this section, the joint committee bill of the House shall be entitled to expedited floor procedures under this section. (2) TREATMENT
THE SENATE.If OF COMPANION MEASURES IN

following passage of the joint com-

mittee bill in the Senate, the Senate then receives the joint committee bill from the House of Representatives, the House-passed joint committee bill shall not be debatable. The vote on passage of the joint com-

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68 1 2 3 4 5 6 7 8 9 mittee bill in the Senate shall be considered to be the vote on passage of the joint committee bill received from the House of Representatives. (3) VETOES.If the President vetoes the joint committee bill, debate on a veto message in the Senate under this section shall be 1 hour equally divided between the majority and minority leaders or their designees. (g) LOSS
OF

PRIVILEGE.The provisions of this sec-

10 tion shall cease to apply to the joint committee bill if 11 12 13 14 15 16 17 18 (1) the joint committee fails to vote on the report or proposed legislative language required under section 401(b)(3)(B)(i) not later than November 23, 2011; or (2) the joint committee bill does not pass both Houses not later than December 23, 2011.
SEC. 403. FUNDING.

Funding for the joint committee shall be derived in

19 equal portions from 20 21 22 23 24 (1) the applicable accounts of the House of Representatives; and (2) the contingent fund of the Senate from the appropriations account Miscellaneous Items, subject to the rules and regulations of the Senate.

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69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
SEC. 404. RULEMAKING.

The provisions of this title are enacted by Congress (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and (2) with full recognition of the constitutional right of either House to change such rules (so far as relating to such House) at any time, in the same manner, and to the same extent as in the case of any other rule of such House.

TITLE VPELL GRANT AND STUDENT LOAN PROGRAM CHANGES

SEC. 501. FEDERAL PELL GRANTS.

Section 401(b)(7)(A)(iv) of the Higher Education Act

20 of 1965 (20 U.S.C. 1070a(b)(7)(A)(iv)) is amended 21 22 23 24 25 (1) in subclause (II), by striking

$3,183,000,000 and inserting $13,183,000,000; and (2) in subclause (III), by striking $0 and inserting $7,000,000,000.

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70 1 2 3 4
SEC. 502. TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STUDENTS.

Section 455(a) of the Higher Education Act of 1965

5 (20 U.S.C. 1087e(a)) is amended by adding at the end the 6 following new paragraph: 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
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(3) TERMINATION

OF AUTHORITY TO MAKE IN-

TEREST SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STUDENTS.

(A) IN

GENERAL.Subject

to subpara-

graph (B) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2012 (i) a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and (ii) the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under section 428H, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph.

71 1 2 3 4 5 6 7 (B) EXCEPTION.Subparagraph (A) shall not apply to an individual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 484(b)..
SEC. 503. TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES.

Section 455(b)(8) of the Higher Education Act of 1965

8 (20 U.S.C. 1087e(b)(8)) is amended 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) in subparagraph (A) (A) by amending the header to read as follows: (A) INCENTIVES
FOR LOANS DISBURSED

BEFORE JULY 1, 2012.;

and

(B) by inserting with respect to loans for which the first disbursement of principal is made before July 1, 2012, after of this part; (2) in subparagraph (B), by inserting with respect to loans for which the first disbursement of principal is made before July 1, 2012 after repayment incentives; and (3) by adding at the end the following new subparagraph: (C) NO
REPAYMENT INCENTIVES FOR NEW

LOANS DISBURSED ON OR AFTER JULY 1, 2012.

Notwithstanding any other provision of this part, the Secretary is prohibited from author-

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72 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 izing or providing any repayment incentive not otherwise authorized under this part to encourage on-time repayment of a loan under this part for which the first disbursement of principal is made on or after July 1, 2012, including any reduction in the interest or origination fee rate paid by a borrower of such a loan, except that the Secretary may provide for an interest rate reduction for a borrower who agrees to have payments on such a loan automatically electronically debited from a bank account..
SEC. 504. INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING AND MASTER CALENDAR EXCEPTION.

Sections 482(c) and 492 of the Higher Education Act

16 of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to the 17 amendments made by this title, or to any regulations pro18 mulgated under those amendments. Attest:

Clerk.

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112TH CONGRESS 1ST SESSION

S. 365

AMENDMENT