Table of Contents
Balanced Budget and Emergency Deficit Control Act of 1985
Title II—Deficit Reduction Procedures
PART A—CONGRESSIONAL BUDGET PROCESS
SUBPART II—AMENDMENTS TO TITLE IV OF THE CONGRESSIONAL BUDGET ACT OF 1974
Sec. 211. New spending authority.
Section 401 of the Congressional Budget Act of 1974 is amended to read as follows:
“BILLS PROVIDING NEW SPENDING AUTHORITY
“Sec. 401. […]
[Text of section 401 as amended by the Balanced Budget and Emergency Deficit Control Act of 1985 has been omitted.]
[For the section in full see the following: Sec. 211. New spending authority.]
Section 201 (BBEDCA)
Section 212 (BBEDCA)
 Sec. 211 of BBEDCA amended section 401 of the Congressional Budget Act of 1974, In section 401(c)(2), it established and defined the term “new spending authority”; this term was replaced by “entitlement authority” when section 401 (CBA) was amended by the Budget Enforcement Act of 1997. In particular section 401, as amended by section 211, defined “spending authority” as the authority to enter into obligations “not provided in advance by appropriation Acts;”. Section 211 (BBEDCA) amended section 401 (CBA) to read as follows:
“(1) For purposes of this section, the term ‘new spending authority’ means spending authority not provided by law on the effective date of this Act, including any increase in or addition to spending authority provided by law on such date.
“(2) For purposes of paragraph (1), the term ‘spending authority’ means authority (whether temporary or permanent)—
“(A) to enter into contracts under which the United States is obligated to make outlays, the budget authority for which is not provided in advance by appropriation Acts;
“(B) to incur indebtedness (other than indebtedness incurred under chapter 31 of title 31 of the United States Code) for the repayment of which the United States is liable, the budget authority for which is not provided in et seq. advance by appropriation Acts;
“(C) to make payments (including loans and grants), the budget authority for which is not provided for in advance by appropriation Acts, to any person or government if, under the provisions of the law containing such authority, the United States is obligated to make such payments to persons or governments who meet the requirements established by such law;
“(D) to forego the collection by the United States of proprietary offsetting receipts, the budget authority for which is not provided in advance by appropriation Acts to offset such foregone receipts; and
“(E) to make payments by the United States (including loans, grants, and payments from revolving funds) other than those covered by subparagraph (A), (B), (C), or (D), the budget authority for which is not provided in advance by appropriation Acts.
Such term does not include authority to insure or guarantee the repayment of indebtedness incurred by another person or government.
Summary of Amendment to Section 402 by Congressional Research Service
The amendment of section 401 (CBA) and its merger with section 402 (CBA) was summarized by CRS as follows:
Sections 401 and 402 of the CBA established controls over “backdoor spending.” Specifically, the sections prohibit the consideration of legislation providing new spending authority or new credit authority unless such authority is made effective only to the extent or in such amounts as are provided in annual appropriations acts. Section 10116 of the [BEA 1997] updates and consolidates these controls. It merges the two sections together into a new Section 401; Section 402 is repealed and subsequent sections are renumbered accordingly.
Robert Keith, Budget Enforcement Act of 1997: Summary and Legislative History, 97-931 GOV (Congressional Research Service, October 8, 1997), p. 14.
LEGISLATIVE HISTORY NOTES
Pub. L. 99–177, title II, Resolving clause, Dec. 12, 1985, 99 Stat. 1056 (Balanced Budget and Emergency Deficit Control Act of 1985).