BBEDCA (Contents)

Balanced Budget and Emergency Deficit Control Act of 1985

Section 252

Title II—Deficit Reduction Procedures

PART C—EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM DEFICIT AMOUNT

SEC. 252. ENFORCING PAY-AS-YOU-GO.

(a) Purpose.—The purpose of this section is to assure that any legislation enacted before October 1, 2002, affecting direct spending or receipts that increases the deficit will trigger an offsetting sequestration.

(b) Sequestration.—

(1) Timing.—Not later than 15 calendar days after the date Congress adjourns to end a session and on the same day as a sequestration (if any) under section 251 or 253, there shall be a sequestration to offset the amount of any net deficit increase caused by all direct spending and receipts legislation enacted before October 1, 2002, as calculated under paragraph (2).

(2) Calculation of deficit increase.—OMB shall calculate the amount of deficit increase or decrease by adding—

(A) all OMB estimates for the budget year of direct spending and receipts legislation transmitted under subsection (d);

(B) the estimated amount of savings in direct spending programs applicable to budget year resulting from the prior year’s sequestration under this section or section 253, if any, as published in OMB’s final sequestration report for that prior year; and

(C) any net deficit increase or decrease in the current year resulting from all OMB estimates for the current year of direct spending and receipts legislation transmitted under subsection (d) that were not reflected in the final OMB sequestration

(c) Eliminating a Deficit Increase.—

(1) The amount required to be sequestered in a fiscal year under subsection (b) shall be obtained from non-exempt direct spending accounts from actions taken in the following order:

(A) Firsts.—All reductions in automatic spending increases specified in section 256(a) shall be made.^[1] 

(B) Second.—If additional reductions in direct spending accounts are required to be made, the maximum reductions permissible under sections 256(b) (guaranteed and direct student loans) and 256(c) (foster care and adoption assistance) shall be made.^[2]

(C) Third.—(i) If additional reductions in direct spending accounts are required to be made, each remaining nonexempt direct spending account shall be reduced by the uniform percentage necessary to make the reductions in direct spending required by paragraph (1); except that the medicare programs specified in section 256(d) shall not be reduced by more than 4 percent and the uniform percentage applicable to all other direct spending programs under this paragraph shall be increased (if necessary) to a level sufficient to achieve the required reduction in direct spending.

(ii) For purposes of determining reductions under clause (i), outlay reductions (as a result of sequestration of Commodity Credit Corporation commodity price support contracts in the fiscal year of a sequestration) that would occur in the following fiscal year shall be credited as outlay reductions in the fiscal year of the sequestration.

(2) For purposes of this subsection, accounts shall be assumed to be at the level in the baseline.

(d) Estimates.—

(1) CBO Estimates.—As soon as practicable after Congress completes action on any direct spending or receipts legislation, CBO shall provide an estimate to OMB of that legislation.

(2) OMB Estimates.—Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any direct spending or receipts legislation, OMB shall transmit a report to the House of Representatives and to the Senate containing—

(A) the CBO estimate of that legislation;

(B) an OMB estimate of that legislation using current economic and technical assumptions; and

(C) an explanation of any difference between the 2 estimates.

(3) Significant differences.—If during the preparation of the report under paragraph (2) OMB determines that there is a significant difference between the OMB and CBO estimates, OMB shall consult with the Committees on the Budget of the House of Representatives and the Senate regarding that difference and that consultation, to the extent practicable, shall include written communication to such committees that affords such committees the opportunity to comment before the issuance of that report.

(4) Scope of estimates.—The estimates under this section shall include the amount of change in outlays or receipts for the current year (if applicable), the budget year, and each outyear excluding any amounts resulting from—

(A) full funding of, and continuation of, the deposit insurance guarantee commitment in effect under current estimates; and

(B) emergency provisions as designated under subsection (e).

(5) Scorekeeping guidelines.—OMB and CBO, after consultation with each other and the Committees on the Budget of the House of Representatives and the Senate, shall—

(A) determine common scorekeeping guidelines; and

(B) in conformance with such guidelines, prepare estimates under this section.

(e) Emergency Legislation.—If a provision of direct spending or receipts legislation is enacted that the President designates as an emergency requirement and that the Congress so designates in statute, the amounts of new budget authority, outlays, and receipts in all fiscal years resulting from that provision shall be designated as an emergency requirement in the reports required under subsection (d). This subsection shall not apply to direct spending provisions to cover agricultural crop disaster assistance.

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Counsel Notes

Endnotes to Legislative Text

[1] Section 256(a) (BBEDCA) was repealed by section 10(a) of the Statutory Pay-As-You-Go Act of 2010 (Pub. L. 111-139).

[2] Section 256(c) (BBEDCA) was repealed by section 10(c) of the Statutory Pay-As-You-Go Act of 2010 (Pub. L. 111-139).

Codification 

This section is classified to the U.S. Code at 2 U.S.C. 902.

Reference to the Congressional Budget Act of 1974

Section 252(d)(5) refers to “scorekeeping guidelines” and the role of both the Congressional Budget Office and the Office of Management and Budget. This section is also referred to by section 308 of the Congressional Budget Act of 1974, which sets out the requirements for cost estimates, in particular by CBO. Section 308(d) Reads as follows: 

(d) Scorekeeping Guidlines.—Estimates under this section shall be provided in accordance with the scorekeeping guidelines determined under section 252(d)(5) of the Balanced Budget and Emergency Deficit Control Act of 1985.

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Legislative History Notes

Public Laws

Pub. L. 99–177, title II, §252, Dec. 12, 1985, 99 Stat. 1072 (Balanced Budget and Emergency Deficit Control Act of 1985).

Pub. L. 100–119, title I, §102(a), Sept. 29, 1987, 101 Stat. 764 (Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987).

Pub. L. 100–203, title VIII, §8003(e), Dec. 22, 1987, 101 Stat. 1330–282  (Omnibus Budget Reconciliation Act of 1987).

Pub. L. 101–508, title XIII, §13101(a), Nov. 5, 1990, 104 Stat. 1388–581 (Budget Enforcement Act of 1990).

Pub. L. 103–66, title XIV, §14003(a), Aug. 10, 1993, 107 Stat. 684 (Omnibus Budget Reconciliation Act of 1993).

Pub. L. 103–354, title I, §119(d)(2), Oct. 13, 1994, 108 Stat. 3208 (Federal Crop Insurance Reform and Department of Agriculture Reauthorization Act of 1994).

Pub. L. 105–33, title X, §10205, Aug. 5, 1997, 111 Stat. 702 (Budget Enforcement Act of 1997).

Pub. L. 113–67, div. A, title I, §121(1), (2), Dec. 26, 2013, 127 Stat. 1174 , 1175 (Bipartisan Budget Act of 2013). 

References in Text

Section 256(a) (2 U.S.C. 906(a)) referred to in subsection (c)(1)(A), was repealed by theStatutory Pay-As-You-Go Act of 2010 (Pub. L. 111–139, title I, §10(a), Feb. 12, 2010, 124 Stat. 21).

Section 256(c) (2 U.S.C. 906(c)) referred to in subsection (c)(1)(B), was repealed by the Statutory Pay-As-You-Go Act of 2010 (Pub. L. 111–139, title I, §10(c), Feb. 12, 2010, 124 Stat. 22). 

Amendments 

2013 

Subsection (b)(2)(B).

The Bipartisan Budget Act f 2013 (Pub. L. 113–67, §121(1)) substituted “applicable to the budget year” for “applicable to budget year”.

Subsection (c)(1)(C)(i).

The Bipartisan Budget Act f 2013 (Pub. L. 113–67, §121(2), substituted “subsection (b)” for “paragraph (1)”. 

1997 

Subsection (a).

The Budget Enforcement Act of 1997 (Pub. L. 105–33), §10205(1)) added subsection (a) and struck out heading and text of former subsection (a). Text read as follows: “The purpose of this section is to assure that any legislation (enacted after November 5, 1990) affecting direct spending or receipts that increases the deficit in any fiscal year covered by this Act will trigger an offsetting sequestration.”

Subsection (b).

The Budget Enforcement Act of 1997 (Pub. L. 105–33, §10205(1)) added subsection (b) and struck out heading and text of former subsection (b) which required sequestrations at the end of a session of Congress to offset amount of any net deficit increase in that fiscal year and prior fiscal year caused by all direct spending and receipts legislation enacted after Nov. 5, 1990.

Subsection (c)(1)(B).

The Budget Enforcement Act of 1997 (Pub. L. 105–33, §10205(2)) inserted “and direct” after “guaranteed”.

Subsection (d).

The Budget Enforcement Act of 1997 (Pub. L. 105–33, §10205(3)) amended the heading and text of subsection (d) generally. Prior to amendment, the text read as follows:

(d) OMB Estimates.—As soon as practicable after Congress completes action on any direct spending or receipts legislation enacted after November 5, 1990, after consultation with the Committees on the Budget of the House of Representatives and the Senate, CBO shall provide OMB with an estimate of the amount of change in outlays or receipts, as the case may be, in each fiscal year through fiscal year 1998 resulting from that legislation. Within 5 calendar days after the enactment of any direct spending or receipts legislation enacted after November 5, 1990, OMB shall transmit a report to the House of Representatives and to the Senate containing such CBO estimate of that legislation, an OMB estimate of the amount of change in outlays or receipts, as the case may be, in each fiscal year through fiscal year 1998 resulting from that legislation, and an explanation of any difference between the two estimates. Those OMB estimates shall be made using current economic and technical assumptions. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House and Senate Committees on the Budget, CBO, and OMB.”

Subsection (e).

The Budget Enforcement Act of 1997 (Pub. L. 105–33, §10205(4)[1]), struck out “, for any fiscal year from 1991 through 1998,” after “If” and “through 1995” after “receipts in all fiscal years”. 

1994 

Subsection (e).

Crop Insurance Act of 1994 Pub. L. 103–354 ([2]) inserted at end “This subsection shall not apply to direct spending provisions to cover agricultural crop disaster assistance.” 

1993 

Subsection (a).

Pub. L. 103–66, §14003(a)(1) (OBRA 1993[3]), which directed the substitution of “Fiscal year 1992–1998 enforcement” for “Fiscal year 1992–1995 enforcement” in heading, was executed by substituting “Fiscal years 1992–1998 enforcement” for “Fiscal years 1992–1995 enforcement”, to reflect the probable intent of Congress.

Subsection (d).

Pub. L. 103–66, §14003(a)(2) (OBRA 1993), substituted “through fiscal year 1998” for “through fiscal year 1995” in two places.

Subsection (e).

Pub. L. 103–66, §14003(a)(3) (OBRA 1993), substituted “for any fiscal year from 1991 through 1998” for “for fiscal year 1991, 1992, 1993, 1994, or 1995”.

1990 

Pub. L. 101–508 (BEA 1990 [4]) amended this section generally, substituting subsections (a) to (e) relating to enforcement of pay-as-you-go for former subsections (a) to (g) relating to the Presidential order.

1987 

The Balanced Budget and Emergency Deficit Reaffirmation Control Act of 1987 (Pub. L. 100–119 [5]) amended section generally to reflect substitution of Director of OMB for Comptroller General as official submitting reports under section 901 of this title and to revise provisions relating to content of Presidential orders issued in accordance with those reports.

Subsection (c)(2)(F)(ii).

Pub. L. 100–203, §8003(e), substituted “proposed” for “made”. 

Effective Date of 1994 Amendment

Pub. L. 103–354, title I, §119(d)(2), October 13, 1994, 108 Stat. 3208 (Crop Insurance Act of 1994[6]) provided that the amendment made by that section is effective January 1, 1995.

Congressional Budget Office Excepted From Certain Requirements

Pub. L. 112–25, title I, §104(b), August 2, 2011, 125 Stat. 246 (BCA 2011 [7]), provided that:

Sec. 104. Expiration.

Sections 252(d)(1), 254(c), 254(f)(3), and 254(i) of the Balanced Budget and Emergency Deficit Control Act of 1985[8] shall not apply to the Congressional Budget Office.

Reduction of Preexisting Paygo Balances

Pub. L. 107–312, §1, December 2, 2002, 116 Stat. 2456 [9] provided that:

Section 1. Reduction of Preexisting Paygo Balances.

Upon enactment of this Act,[10] the Director of the Office of Management and Budget shall reduce any balances of direct spending and receipts legislation for all fiscal years under section 252[11] of the Balanced Budget and Emergency Deficit Control Act of 1985 to zero. 

Pay-As-You-Go Adjustment

Pub. L. 107–117, div. C, §102, January 10, 2002, 115 Stat. 2342 (Defense Appropriations 2002)[12], provided:

Sec. 102. Pay-As-You-Go Adjustment.—In preparing the final sequestration report for fiscal year 2002 required by section 254(f)(3) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 904(f)(3)], the Director of the Office of Management and Budget shall change any balance of direct spending and receipts legislation for fiscal years 2001 and 2002 under section 252 of that Act [2 U.S.C. 902] to zero. 

Conforming Paygo Scorecard With Transportation Equity Act for 21st Century

Pub. L. 105–178, title VIII, §8102, June 9, 1998, 112 Stat. 492 , as amended by Pub. L. 105–206, title IX, §9013(c), July 22, 1998, 112 Stat. 865, provided:

Sec. 8102. Conforming the Paygo Scorecard with This Act.

Upon the enactment of this Act [June 9, 1998], the Director of the Office of Management and Budget shall not make any estimates under section 252(d) of the Balanced Budget and Emergency Deficit Control Act of 1985[13] of changes in direct spending outlays and receipts for any fiscal year resulting from this title.[14]”

Reduction of Preexisting Balances and Exclusion of Effects of Pub. L. 105–33 From Paygo Scorecard

Pub. L. 105–33, title X, §10213, Aug. 5, 1997, 111 Stat. 712 (BEA 1997), provided that:

sec. 10213. reduction of preexisting balances and exclusion of effects of this act from paygo scorecard.

Upon the enactment of this Act [Aug. 5, 1997], the Director of the Office of Management and Budget shall-

“(1) reduce any balances of direct spending and receipts legislation for any fiscal year under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] to zero; and

“(2) not make any estimates of changes in direct spending outlays and receipts under subsection (d) of that section for any fiscal year resulting from the enactment of this Act [see Tables for classification] or of the Taxpayer Relief Act of 1997.[15] 

Reduction of Direct Spending and Receipts Legislation Balances

Pub. L. 103–66, title XIV, §14003(c), Aug. 10, 1993, 107 Stat. 685 (OBRA 1993) provided that:

sec. 14003. enforcing pay-as-you-go.

[…]

(c) Upon enactment of this Act[16], the director of the Office of Management and Budget shall reduce the balances of direct spending and receipts legislation applicable to each fiscal year under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985[17] by an amount equal to the net deficit reduction achieved through the enactment in this Act of direct spending and receipts legislation for that year.

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Legislative History Endnotes

[1] The full short title of the BEA 1997 is as follows: “Budget Enforcement Act of 1997”. This is the short title of Title X of the “Balanced Budget Act of 1997”.

[2] The full short title of this Act is as follows: “Federal Crop Insurance Reform and Department of Agriculture Reauthorization Act of 1994”.

[3] The full short title of this Act is as follows: “Omnibus Budget Reconciliation Act of 1993”.

[4] The full short title of the BEA 1990 is as follows: “Budget Enforcement Act of 1990”. This is the short title of Title XIII of the “Omnibus Budget Reconciliation Act of 1990”.

[5] The full short title of this Act is as follows: “Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987”.

[6] The full short title of this Act is as follows: “Federal Crop Insurance Reform and Department of Agriculture Reauthorization Act of 1994”.

[7] The full short title of the BCA 2011 is as follows: “Budget Control Act of 2011”.

[8] 2 U.S.C. 902(d)(1), 904(c), (f)(3), (i).

[9] This Act, which has no short title, was enacted on December 2, 2002. It’s long title is An Act to reduce preexisting PAYGO balances, and for other purpose (Pub. L. 107-312).

[10] See Note #9 above. 

[11] 2 U.S.C. 902.

[12] The title of this Act is the Department of Defense and Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks on the United States Act, 2002 (Pub. L. 107–117)

[13] 2 U.S.C. 902(d)

[14] See Tables for classification or from 2 U.S.C. 1102 of this Act [former 23 U.S.C. 104 note].

[15] Pub. L. 105–34, H.R. 2014, 111 Stat. 788 was enacted on August 5, 1997.

[16] OBRA 1993 was enacted on August 10, 1993.

[17] 2 U.S.C. 902.

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