Federal Capital Revolving Fund
SEC. 8. BUDGET ENFORCEMENT.
The following rules shall apply to budget enforcement under the Congressional Budget Act of 1974, the Balanced Budget and Emergency Deficit Control Act of 1985, and the Statutory Pay-As-You-Go Act of 2010.
(a) Direct Spending.—Provisions of appropriations Acts approving purchase transfers from the Fund to purchasing agencies and collections by the Fund of repayments from purchasing agencies, shall be considered direct spending and shall not be included in the estimates under section 251(a)(7) of the Balanced Budget and Emergency Deficit Control Act of 1985 or considered budgetary effects for the purposes of section 3(4) of the Statutory Pay-As-You-Go Act of 2010.
(b) Discretionary Appropriations.—Appropriations to purchasing agencies for annual repayments to the Fund shall be considered discretionary appropriations and shall be scored in the year for which such appropriations are made available by an appropriations Act.
(c) Changes To Fund Balance.—Any provision enacted in an appropriations Act that—
(1) rescinds or precludes from obligation balances in the Fund;
(2) rescinds or precludes from obligation balances of approved purchase transfers; or
(3) reduces the annual limitation on total purchase transfers in section 4(f), shall be considered budgetary effects for purposes of the Statutory Pay-As-You-Go Act of 2010 and shall not be included in the estimates under section 251(a)(7) of the Balanced Budget and Emergency Deficit Control Act of 1985. Such budgetary effects shall be placed on the Office of Management and Budget PAYGO scorecards defined in section 4(d) of that Act and on the PAYGO scorecard maintained for purposes of section 4106 of H. Con. Res. 71 (115th Congress).
(d) Failure to Appropriate Repayments.—If a bill making appropriations for a fiscal year provides a first repayment amount for an approved project and such appropriations bill for a subsequent fiscal year during the repayment period fails to provide the repayment amount required for that fiscal year, an amount equal to the required repayment, calculated pursuant to section 6(c), shall nevertheless be included in the estimates under section 251(a)(7) of the Balanced Budget and Emergency Deficit Control Act of 1985.
(e) Transfers and Reprogramming.—If, notwithstanding section 7(b), a provision in an appropriations Act authorizes or requires—
(1) a transfer of balances in the Fund for any purpose other than to cover the costs of projects approved pursuant to this Act; or
(2) a purchasing agency to transfer or reprogram a purchase transfer for a purpose other than paying the costs of projects approved pursuant to this Act, such amount shall be included in the estimates of discretionary appropriations under section 251(a)(7) of the Balanced Budget and Emergency Deficit Control Act of 1985.
The Federal Capital Revolving Fund Act of 2018 is proposed legislation that would reform the way the Federal Government purchases capital assets.
Section-by-Section for the Federal Capital Revolving Fund Act of 2018
Sec.8. Budget Enforcement. This section specifies how transactions between the Fund and purchasing agencies are scored for budget enforcement. Appropriations to agencies to repay the FCRF would be scored as discretionary. All other transactions would be scored as direct spending. Failure to appropriate the required repayment amounts would be charged as a discretionary cost to appropriations Acts. Enacted rescissions of FCRF balances, rescissions of balances of transfers for approved purchases, and reductions in the annual limit on total transfers from the Fund to pay for the costs of projects would be scored as PAYGO costs. As a result, the up-front purchase of capital assets would be included in the deficit, but the total cost would be addressed over time through the annual appropriations process.
[From the Budget Process section of the Analytical Perspectives volume of the President’s Fiscal Year 2020 Presidential Submission; pp. 138-140.]