Adjustments for Discretionary Spending Limits
Under section 00(b) (BBEDCA), the discretionary spending limits set forth in subsection (c) of that section, may be adjusted by the Office of Management and Budget if certain circumstances are met. An adjustment may be made for spending that is designated as for the purposes of “Overseas Contingency Operations” or for the “Global War on Terrorism”. Usually referred to as OCO/GWOT, the parameters of the purpose are not specifically defined, though they generally fall in the defense spending function, with a lesser amount in the international relations function.
See also Cap Adjustments.
Overseas Contingency Operations/Global War on Terrorism
The following is the legislative text for the adjustment for overseas contingencies and the global war on terrorism.
(A) Emergency appropriations; overseas contingency operations/global war on terrorism.—If, for any fiscal year, appropriations for discretionary accounts are enacted that—
(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.
OMB Definition of Cap Adjustment
Cap adjustment means either an increase or a decrease that is permitted to the statutory cap limits for each fiscal year under BBEDCA on the budget authority and outlays (only if applicable) provided by discretionary appropriations only if certain conditions are met. These conditions may include providing for a base level of funding, a designation of the increase or decrease by the Congress, (and in some circumstances, the President) pursuant to a section of the BBEDCA, or a change in concepts and definitions of funding under the cap. Changes in concepts and definitions require consultation with the Congressional Appropriations and Budget Committees. See the OMB Glossary of Budget Terms.
Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 2018: Analytical Perspectives (May 23, 2017), pp. 88-91.
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