Cyclopedia

Balanced Budget and Emergency Deficit Control Act of 1985

Summary

The Balanced Budget and Emergency Deficit Control Act of 1985 is one of the primary budget laws enacted by Congress. It amended and augmented the Congressional Budget Act of 1974, and was itself two years later, after being found unconstitutional, by the “Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1974”. 

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GAO Glossary of Terms and Definition (September 2005)

Balanced Budget and Emergency Deficit Control Act of 1985

Also known as the Deficit Control Act, originally known as Gramm-Rudman-Hollings. Among other changes to the budget process, the law established “maximum deficit amounts” and a sequestration procedure to reduce spending if those targets were exceeded. The Deficit Control Act has been amended and extended several times— most significantly by the Budget Enforcement Act (BEA) of 1990. The sequestration and enforcement mechanisms expired or became ineffective at the end of fiscal year 2002. (See also Budget Enforcement Act; Gramm-Rudman-Hollings.)

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