BBEDCA (Contents)

Balanced Budget and Emergency Deficit Control Act of 1985

Section 254

Title II—Deficit Reduction Procedures 

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

SEC. 254. REPORTS AND ORDERS.

(a) Timetable.—The timetable with respect to this part for any budget year is as follows:

Date:	Action to be completed:
January 21…………………………………..	Notification regarding optional adjustment of maximum deficit amount.
5 days before the President’s budget submission………………………………….	CBO sequestration preview report.
The President’s budget submission…	OMB sequestration preview report.
August 10……………………………………….	Notification regarding military personnel.
August 15……………………………………….	CBO sequestration update report.
August 20……………………………………….	OMB sequestration update report.
10 days after end of session……………	CBO final sequestration report.
15 days after end of session……………	OMB final sequestration report; Presidential order.

(b) Submission and Availability of Reports.—Each report required by this section shall be submitted, in the case of CBO, to the House of Representatives, the Senate and OMB and, in the case of OMB, to the House of Representatives, the Senate, and the President on the day it is issued. On the following day a notice of the report shall be printed in the Federal Register.

(c) Sequestration Preview Reports.^[1] —

(1) Reporting requirement.—On the dates specified in subsection (a), OMB and CBO shall issue a preview report regarding discretionary, pay-as-you-go, and deficit sequestration based on laws enacted through those dates.

(2) Discretionary sequestration report.—The preview reports shall set forth estimates for the current year and each subsequent year through 2021 of the applicable discretionary spending limits for each category and an explanation of any adjustments in such limits under section 251.

(3) Pay-as-you-go sequestration.—The preview reports shall set forth, for the current year and the budget year, estimates for each of the following:

(A) The amount of net deficit increase or decrease, if any, calculated under section 252(b)

(B) A list identifying each law enacted and sequestration implemented after the date of enactment of this section included in the calculation of the amount of deficit increase or decrease and specifying the budgetary effect of each such law.

(C) The sequestration percentage or (if the required sequestration percentage is greater than the maximum allowable percentage for medicare) percentages necessary to eliminate a deficit increase under section 252(c).

(4) Deficit sequestration reports.—The preview reports shall set forth for the budget year estimates for each of the following:

(A) The maximum deficit amount, the estimated deficit calculated under section 253(b), the excess deficit, and the margin.

(B) The amount of reductions required under section 252, the excess deficit remaining after those reductions have been made, and the amount of reductions required from defense accounts and the reductions required from non-defense accounts.

(C) The sequestration percentage necessary to achieve the required reduction in defense accounts under section 253(d).

(D) The reductions required under sections 253(e)(1) and 253(e)(2).

(E) The sequestration percentage necessary to achieve the required reduction in non-defense accounts under section 253(e)(3).

The CBO report need not set forth the items other than the maximum deficit amount for fiscal year 1992, 1993, or any fiscal year for which the President notifies the House of Representatives and the Senate that he will adjust the maximum deficit amount under the option under section 253(g)(1)(B).

(5) Explanation of differences.—The OMB reports shall explain the differences between OMB and CBO estimates for each item set forth in this subsection.

(d) Notification Regarding Military Personnel.—On or before the date specified in subsection (a), the President shall notify the Congress of the manner in which he intends to exercise flexibility with respect to military personnel accounts under section 255(f).

(e) Sequestration Update Reports.—On the dates specified in subsection (a), OMB and CBO shall issue a sequestration update report, reflecting laws enacted through those dates, containing all of the information required in the sequestration preview reports. This report shall also contain a preview estimate of the adjustment for disaster funding for the upcoming fiscal year.

(f) Final Sequestration Reports. —

(1) Reporting requirement.—On the dates specified in subsection (a), OMB and CBO shall issue a final sequestration report, updated to reflect laws enacted through those dates.

(2) Discretionary sequestration reports.—The final reports shall set forth estimates for each of the following:

(A) For the current year and each subsequent year through 2021 the applicable discretionary spending limits for each category and an explanation of any adjustments in such limits under section 251, including a final estimate of the adjustment for disaster funding.

(B) For the current year and the budget year the estimated new budget authority and outlays for each category and the breach, if any, in each category.

(C) For each category for which a sequestration is required, the sequestration percentages necessary to achieve the required reduction.

(D) For the budget year, for each account to be sequestered, estimates of the baseline level of sequesterable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions.

(3) Pay-as-you-go and deficit sequestration reports.— The final reports shall contain all the information required in the pay-as-you-go and deficit sequestration preview reports. In addition, these reports shall contain, for the budget year, for each account to be sequestered, estimates of the baseline level of sequestrable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions. The reports shall also contain estimates of the effects on outlays of the sequestration in each outyear for direct spending programs.^[2]

(4) Explanation of differences.—The OMB report shall explain any differences between OMB and CBO estimates of the amount of any net deficit change calculated under section 252(b), any excess deficit, any breach, and any required sequestration percentage. The OMB report shall also explain differences in the amount of sequesterable resources for any budget account to be reduced if such difference is greater than $5,000,000.

(5) Presidential order.—On the date specified in subsection (a), if in its final sequestration report OMB estimates that any sequestration is required, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.

(g) Within-session sequestration reports and order.—If an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach, 10 days later CBO shall issue a report containing the information required in paragraph (f)(2). Fifteen days after enactment, OMB shall issue a report containing the information required in paragraphs (f)(2) and (f)(4). On the same day as the OMB report, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.

(h) GAO Compliance Report.—Upon request of the Committee on the Budget of the House of Representatives or the Senate, the Comptroller General shall submit to the Congress and the President a report on—

(1) the extent to which each order issued by the President under this section complies with all of the requirements contained in this part, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not; and

(2) the extent to which each report issued by OMB or CBO under this section complies with all of the requirements contained in this part, either certifying that the report fully and accurately complies with such requirements or indicating the respects in which it does not.

(i) Low-Growth Report.^[3]—At any time, CBO shall notify the Congress if—

(1) during the period consisting of the quarter during which such notification is given, the quarter preceding such notification, and the 4 quarters following such notification, CBO or OMB has determined that real economic growth is projected or estimated to be less than zero with respect to each of any 2 consecutive quarters within such period; or

(2) the most recent of the Department of Commerce’s advance preliminary or final reports of actual real economic growth indicate that the rate of real economic growth for each of the most recently reported quarter and the immediately preceding quarter is less than one percent.

(j) Economic and Technical Assumptions.—In all reports required by this section, OMB shall use the same economic and technical assumptions as used in the most recent budget submitted by the President under section 1105(a) of title 31, United States Code.

Previous: Section 253 (BBEDCA)	Next: Section 255 (BBEDCA)

COUNSEL NOTES

Codification

This section is classified to the U.S. Code at 2 U.S.C. 904.

ENDNOTES

[1] This report requirement does not apply to the Congressional Budget Office.

[2] This report requirement does not apply to the Congressional Budget Office.

[3] The Budget Control Act of 2011 (Pub. L. 112-25) specifically exempted the Congressional Budget Office from this report requirement.

References

CRS – Budget “Sequestration” and Selected Program Exemptions and Special Rules (R42050 January 10, 2013)

CRS – Sequestration as a Budget Enforcement Process: Frequently Asked Questions (R42972 December 1, 2015)

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Legislative History Notes

Public Laws

Pub. L. 99–177, title II, §254, Dec. 12, 1985, 99 Stat. 1078 (Balanced Budget and Emergency Deficit Control Act of 1985);

Pub. L. 100–119, title I, §§102(b)(1), 106(e)(2), Sept. 29, 1987, 101 Stat. 773 , 781 (Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987);

Pub. L. 101–508, title XIII, §13101(a), Nov. 5, 1990, 104 Stat. 1388–586 (Budget Enforcement Act of 1990);

Pub. L. 103–66, title XIV, §§14002(c)(2), 14003(b), Aug. 10, 1993, 107 Stat. 684 , 685 (Omnibus Budget Reconciliation Act of 1993);

Pub. L. 103–322, title XXXI, §310001(g)(2), Sept. 13, 1994, 108 Stat. 2105 (Further Revision Law for Loan Guarantee Commitments Related to Fiscal Year 1986 Sequestration Law (not formal title));

Pub. L. 104–316, title I, §102(d), Oct. 19, 1996, 110 Stat. 3828 (General Accounting Office Act of 1996);

Pub. L. 105–33, title X, §10206, Aug. 5, 1997, 111 Stat. 704 (Budget Enforcement Act of 1997); 

Pub. L. 112–25, title I, §103, Aug. 2, 2011, 125 Stat. 246 (Budget Control Act of 2011);

Pub. L. 113–67, div. A, title I, §121(3), (4), Dec. 26, 2013, 127 Stat. 1175 (Bipartisan Budget Act of 2013) . 

Codification

November 5, 1990, referred to in subsection (c)(3)(B), was in the original “the date of enactment of this section”, which was translated as meaning the date of enactment of Pub. L. 101–508, which amended this section generally, to reflect the probable intent of Congress. 

Amendments 

2013 

Subsection (c)(3)(A).

Pub. L. 113–67, §121(3); the Bipartisan Budget Act of 2013 (BBA 2013) substituted “section 252(b)” for “subsection 252(b)”. 

Subsection. (f)(4).

Pub. L. 113–67, §121(4) (BBA 2013) substituted “section 252(b)” for “subsection 252(b)”. 

2011 

Subsection (c)(2).

Pub. L. 112–25, §103(1); The Budget Control Act of 2011 (BCA 2011), in reestablishing and extending the discretionary spending limits (which had expired after fiscal year 2002) through 2021, amended this section by substituting “2021” for “2002”.

Subsection (e).

Pub. L. 112–25, §103(2) (BCA 2011) added “This report shall also contain a preview estimate of the adjustment for disaster funding for the upcoming fiscal year.” at the end of subsection (e).

Subsection (f)(2)(A).

Pub. L. 112–25, §103(3) (BCA 2011) substituted “2021” for “2002” and inserted “, including a final estimate of the adjustment for disaster funding” before period at end. 

1997 

Subsection (c).

Pub. L. 105–33, §10206(1), (2) (BEA 1997) redesignated subsection (d) as (c), substituted “2002” for “1998” in par. (2), and struck out heading and text of former subsection (c). This text read as follows:

“With respect to budget year 1994 or 1995, on the date specified in subsection (a) of this section the President shall notify the House of Representatives and the Senate of his decision regarding the optional adjustment of the maximum deficit amount (as allowed under section 903(g)(1)(B) of this title).”

Subsection (d).

Pub. L. 105–33, §10206(1), (3); The Budget Enforcement Act of 1997 (BEA 1997) redesignated subsection (e) as (d) and substituted “section 905(f)” for “section 905(h)”. Former subsection (d) redesignated (c).

Subsection (e).

Pub. L. 105–33, §10206(1), (BEA 1997) redesignated subsection (f) as (e). Former subsection (e) redesignated (d).

Subsection (f).

Pub. L. 105–33, §10206(1), (BEA 1997) redesignated subsection (g) as (f). Former subsec. (f) redesignated (e).

Subsection (f)(2)(A).

Pub. L. 105–33, §10206(4)(A) (BEA 1997) substituted “2002” for “1998”.

Subsection (f)(3).

Pub. L. 105–33, §10206(4)(B) (BEA 1997) struck out “through 1998” after “each outyear”.

Subsection (f)(4) to (6).

Pub. L. 105–33, §10206(4)(C) (BEA 1997) redesignated pars. (5) and (6) as (4) and (5), respectively, and struck out heading and text of former par. (4). Text read as follows: “The final reports shall set forth for the budget year estimates for each of the following:

“(A) The amount of budget authority appropriated from the Violent Crime Reduction Trust Fund and outlays resulting from those appropriations.

“(B) The sequestration percentage and reductions, if any, required under section 901a of this title.”

Subsection (g).

Pub. L. 105–33, §10206(1), (5) (BEA 1997) redesignated subsection (h) as (g) and substituted “paragraph (f)(2)” for “paragraph (g)(2)” and “paragraphs (f)(2) and (f)(4)” for “paragraphs (g)(2) and (g)(4)”. Former subsection (g) redesignated (f).

Subsections (h) to (k).

Pub. L. 105–33, §10206(1) (BEA 1997) redesignated subsections (i) to (k) as (h) to (j), respectively. Former subsection (h) redesignated (g). 

1996

Subsection (a) and subsection (i).  

Pub. L. 104–316, §102(d)(1); the General Accounting Office Act of 1996 struck out the item at end of the timetable relating to the GAO compliance report, and (d)(2), in the introductory provisions substituted “Upon request of the Committee on the Budget of the House of Representatives or the Senate” for “On the date specified in subsection (a) of this section”.  The amendment read as follows:

1994

Subsection (g)(4) to (6).

Pub. L. 103–322 added paragraph (4) and redesignated former paragraphs (4) and (5) as (5) and (6), respectively.

1993

Subsection(d)(2), (g)(2)(A), (3).

Pub. L. 103–66 substituted “1998” for “1995”.

1990

Pub. L. 101–508 amended section generally, substituting provisions setting out timetable and requisite content of reports and orders developed as part of sequestration process for former provisions relating to special Congressional procedures in the event of recession, Congressional responses to Presidential orders, and treatment of certain resolutions as reconciliation bills. 

1987

Subsection (b)(1)(A).

Pub. L. 100–119, §102(b)(1) (BBEDCRA 1987) substituted “the Director of OMB” for “the Comptroller General”.

Subsection (b)(1)(E).

Pub. L. 100–119, §106(e)(2), (BBEDCRA 1987) inserted provisions relating to maximum deficit amount for fiscal year 1988 or 1989. 

Congressional Budget Office Excepted From Certain Requirements

Subsections (c), (f)(3), and (i) of this section is inapplicable to the Congressional Budget Office, see section 104(b) of Pub. L. 112–25 (BCA 2011). 

Fiscal Year Deficit Control Measures 

1991 

Pub. L. 102–27, title IV, §401(b), Apr. 10, 1991, 105 Stat. 130, 154 (Dire Emergency Supplemental Appropriations – Desert Shield/Desert Storm) provided that:

(b) Upon the enactment of this Act [Apr. 10, 1991], the order issued by the President on November 9, 1990 [set out below], pursuant to sections 251 and 254 of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, [2 U.S.C. 901, 904] is hereby rescinded. Any action taken to implement this order shall be reversed, and any sequestrable resource that has been reduced or sequestered by such order is hereby restored, revived, or released and shall be available to the same extent and for the same purpose as if the order had not been issued.

Pub. L. 101–508, title XIII, §13401, Nov. 5, 1990, 104 Stat. 1388–628; the Budget Enforcement Act of 1990 reversed the effects of the sequestration that was ordered on August 25, 1990. Section 13401 (BEA 1990) provided that:

SEC. 13401. RESTORATION OF FUNDS SEQUESTERED.

(a) Order Rescinded.—Upon the enactment of this Act [Nov. 5, 1990], the orders issued by the President on August 25, 1990, and October 15, 1990 [set out below], pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] are hereby rescinded.

(b) Amounts Restored.—Any action taken to implement the orders referred to in subsection (a) shall be reversed, and any sequestrable resource that has been reduced or sequestered by such orders is hereby restored, revived, or released and shall be available to the same extent and for the same purpose as if the orders had not been issued.

(c) Furloughed Employees.—(1) Federal employees furloughed as a result of the lapse in appropriations from midnight October 5, 1990, until the enactment of House Joint Resolution 666 [Pub. L. 101–412, which was approved Oct. 9, 1990] shall be compensated at their standard rate of compensation for the period during which there was a lapse in appropriations.

(2) All obligations incurred in anticipation of the appropriations made and authority granted by House Joint Resolution 666 for the purposes of maintaining the essential level of activity to protect life and property and bringing about orderly termination of government functions are hereby ratified and approved if otherwise in accord with the provisions of that Act [Pub. L. 101–412, Oct. 9, 1990, 104 Stat. 894].

Pub. L. 101–467, §105, Oct. 28, 1990, 104 Stat. 1086, 1087 provided that:

(a) Any order on sequestration for fiscal year 1991 issued before, on, or after the date of enactment of this joint resolution [Oct. 28, 1990] pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action shall be taken to implement any such order.

(b) Subsection (a) shall cease to be effective on the date set forth in section 101(b)(B) [Nov. 5, 1990].

Pub. L. 101–461, §113, Oct. 25, 1990, 104 Stat. 1075, 1078  provided that:

(a) Any order on sequestration for fiscal year 1991 issued before, on, or after the date of enactment of this joint resolution [Oct. 25, 1990] pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action shall be taken to implement any such order.

(b) Subsection (a) shall cease to be effective on the date set forth in section 108(c) [Oct. 27, 1990].

Pub. L. 101–444, §113, Oct. 19, 1990, 104 Stat. 1033  provided that:

(a) Any order on sequestration for fiscal year 1991 issued before, on, or after the date of enactment of this joint resolution [Oct. 19, 1990] pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action shall be taken to implement any such order.

(b) Subsection (a) shall cease to be effective on the date set forth in section 108(c) [Oct. 24, 1990].”

Pub. L. 101–412, §113, Oct. 9, 1990, 104 Stat. 867, 897  provided that:

(a) Any order on sequestration for fiscal year 1991 issued before, on, or after the date of enactment of this joint resolution [Oct. 9, 1990] pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action shall be taken to implement any such order.

(b) Subsection (a) shall cease to be effective on the date set forth in section 108(c) [Oct. 19, 1990].

Pub. L. 101–403, title I, §113, Oct. 1, 1990, 104 Stat. 870  provided that:

(a) Any order on sequestration for fiscal year 1991 issued before, on, or after the date of enactment of this joint resolution [Oct. 1, 1990] pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action shall be taken to implement any such order.

(b) Subsection (a) shall cease to be effective on the date set forth in section 108(c) [Oct. 5, 1990].

Final Order of the President of the United States, Nov. 9, 1990, 26 Weekly Compilation of Presidential Documents 1797, Nov. 12, 1990, provided:

By the authority vested in me as President by the statutes of the United States of America, including section 254 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99–177) [2 U.S.C. 904], as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100–119) and Title XIII of the Omnibus Reconciliation Act of 1990 (Public Law 101–508) (hereafter referred to as “the Act”), I hereby order that the following actions be taken immediately to implement the sequestrations and reductions determined by the Director of the Office of Management and Budget as set forth in his report dated November 9, 1990, under sections 251 and 254 of the Act [2 U.S.C. 901, 904]:

(1) Budgetary resources for each non-exempt account within the international category of discretionary spending shall be reduced as specified by the Director of the Office of Management and Budget in his report of November 9, 1990.

(2) Pursuant to sections 250(c)(6) and 251 [former 2 U.S.C. 900(c)(6), 2 U.S.C. 901], budgetary resources subject to sequestration shall be new budget authority; new loan guarantee commitments or limitations; new direct loan obligations, commitments, or limitations; and obligation limitations.

(3) For accounts making commitments for guaranteed loans as authorized by substantive law, the head of each Department or agency is directed to reduce the level of such commitments or obligations to the extent necessary to conform to the limitations established by the Act [BBEDCA; Pub. L. 99–177] and specified by the Director of the Office of Management and Budget in his report of November 9, 1990.

All sequestrations shall be made in strict accordance with the specifications of the November 9th report of the Director of the Office of Management and Budget and the requirements of sections 251 and 254.

George Bush.

Final Order of the President of the United States, Oct. 15, 1990, 55 F.R. 41977, provided:

By the authority vested in me as President by the statutes of the United States of America, including section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99–177) [2 U.S.C. 902], as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100–119) (hereafter referred to as “the Act”), I hereby order that the following actions shall be taken to implement the sequestrations and reductions determined by the Director of the Office of Management and Budget as set forth in his report dated October 15, 1990, under section 251 of the Act [2 U.S.C. 901]:

(1) Each automatic spending increase that would, but for the provisions of the Act, take effect during fiscal year 1991 is permanently sequestered or reduced as provided in section 252.

(2) The following are sequestered as provided in section 252: new budget authority; unobligated balances; new loan guarantee commitments or limitations; new direct loan obligations, commitments, or limitations; spending authority as defined in section 401(c)(2) of the Congressional Budget Act of 1974, as amended [2 U.S.C. 651(c)(2)]; and obligation limitations.

(3) For accounts making payments otherwise required by substantive law, the head of each Department or agency is directed to modify the calculation of each such payment to the extent necessary to reduce the estimate of total required payments for the fiscal year by the amount specified by the Director of the Office of Management and Budget in his report of October 15, 1990.

(4) For accounts making commitments for guaranteed loans as authorized by substantive law, the head of each Department or agency is directed to reduce the level of such commitments or obligations to the extent necessary to conform to the limitations established by the Act and specified by the Director of the Office of Management and Budget in his report of October 15, 1990.

All reductions and sequestrations shall be made in strict accordance with the specifications of the October 15th report of the Director of the Office of Management and Budget and the requirements of section 252(b).

This order supersedes the Initial Order issued on August 25, 1990 [see above].

This order shall be published in the Federal Register.

George Bush.

Initial Order of the President of the United States, Aug. 25, 1990, 55 F.R. 35133, which provided emergency deficit control measures for fiscal year 1991, was superseded by Final Order of the President, Oct. 15, 1990, 55 F.R. 41977, set out above.

1990

Pub. L. 101–239, title VI, §6001, Dec. 19, 1989, 103 Stat. 2139 provided that:

Notwithstanding any other provision of law (including section 11002 [set out below] or any other provision of this Act, other than section 6201 [set out below]), the reductions in the amount of payments required under title XVIII of the Social Security Act [42 U.S.C. 1395 et seq.] made by the final sequester order issued by the President on October 16, 1989 [set out below], pursuant to section 252(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902(b)] shall continue to be effective (as provided by sections 252(a)(4)(B) and 256(d)(2) of such Act [2 U.S.C. 902(a)(4)(B), 906(d)(2)]) through December 31, 1989, with respect to payments for items and services under part A of such title [42 U.S.C. 1395c et seq.] (including payments under section 1886 of such title [42 U.S.C. 1395ww] attributable or allocated to such part). Each such payment made for items and services provided during fiscal year 1990 after such date shall be increased by 1.42 percent above what it would otherwise be under this Act.

Pub. L. 101–239, title VI, §6101, Dec. 19, 1989, 103 Stat. 2168 provided that:

Notwithstanding any other provision of law (including any other provision of this Act, other than section 6201 [set out below]), the reductions in the amount of payments required under title XVIII of the Social Security Act [42 U.S.C. 1395 et seq.] made by the final sequester order issued by the President on October 16, 1989, pursuant to section 252(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902(b)] shall continue to be effective (as provided by sections 252(a)(4)(B) and 256(d)(2) of such Act [2 U.S.C. 902(a)(4)(B), 906(d)(2)]) through March 31, 1990, with respect to payments for items and services under part B of such title [42 U.S.C. 1395j et seq.].

Pub. L. 101–239, title VI, §6201, Dec. 19, 1989, 103 Stat. 2225 provided that:

“Notwithstanding any other provision of law (including section 11002 [set out below] or any other provision of this Act), the reductions in the amount of payments required under title XVIII of the Social Security Act [42 U.S.C. 1395 et seq.] made by the final sequester order issued by the President on October 16, 1989 [set out below], pursuant to section 252(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902(b)] shall continue to be effective (as provided by sections 252(a)(4)(B) and 256(d)(2) of such Act [2 U.S.C. 902(a)(4)(B), 906(d)(2)]) through December 31, 1989, with respect to payments under section 1833(a)(1)(A) or 1876 of the Social Security Act [42 U.S.C. 1395l(a)(1)(A), 1395mm], section 402 of the Social Security Amendments of 1967 [section 402 of Pub. L. 90–248, enacting 42 U.S.C. 1395b–1, and amending 42 U.S.C. 1395ll], or section 222 of the Social Security Amendments of 1972 [section 222 of Pub. L. 92–603, amending 42 U.S.C. 1395b–1 and enacting provisions set out as a note under 42 U.S.C. 1395b–1]. Each such payment made during fiscal year 1990 after such date shall be increased by 1.42 percent above what it would otherwise be under this Act.”

Pub. L. 101–239, title XI, §11002, Dec. 19, 1989, 103 Stat. 2490 provided that:

“(a) Order Rescinded.–(1) Upon the issuance of a new final order by the President under subsection (b)(4) [set out below], the order issued by the President on October 16, 1989 [set out below], pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is rescinded.

“(2) Except as otherwise provided in sections 6001, 6101, and 6201 [set out above], and subject to subsection (b), any action taken to implement the order issued by the President on October 16, 1989, shall be reversed, and any sequesterable budgetary resource that has been reduced or sequestered by such order is restored, revived, or released and shall be available to the same extent and for the same purposes as if an order had not been issued.

“(3) For purposes of section[s] 702(d) and 1101(c) of the Ethics Reform Act of 1989 [Pub. L. 101–194, 5 U.S.C. 5305 note, 2 U.S.C. 31–1 note], the order issued by the President on October 16, 1989, pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] is deemed to be rescinded on January 31, 1990.

“(b) Adjusted Reduction.–

“(1) Before the close of the fifteenth calendar day beginning after the date of enactment of this Act [Dec. 19, 1989], the Director of OMB shall issue a revised report using the exact budget baseline set forth in the report of October 16, 1989 [set out below], and following the requirements, specifications, definitions, and calculations required by the Balanced Budget and Emergency Deficit Control Act of 1985 [Pub. L. 99–177, title II, see Short Title note set out under 2 U.S.C. 901] for the final report issued under section 251(c)(2) [former 2 U.S.C. 901(c)(2)] for fiscal year 1990, except that the aggregate outlay reduction to be achieved shall be an amount equal to $16.1 billion multiplied by 130 divided by 365. Calculations made to carry out the preceding sentence shall take into account the reductions and cancellations achieved by paragraphs (2) and (3) and shall not be affected by subsection (d).

“(2) Notwithstanding any provision of law other than this paragraph, the reductions and cancellations in the student loan programs described in section 256(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 906(c)] achieved by the order issued by the President on October 16, 1989, shall remain in effect through December 31, 1989, and no reductions or cancellations in such programs shall be made by the order issued under paragraph (4).

“(3) Notwithstanding any provision of law other than this paragraph, any automatic spending increase suspended or cancelled by the order issued by the President on October 16, 1989, shall be paid at a rate that is 130/365ths less than the rate that would have been paid under the laws providing for such automatic spending increase.

“(4) On the date that the Director submits a revised report to the President under paragraph (1) for fiscal year 1990, the President shall issue a new final order to make all of the reductions and cancellations specified in such report in conformity with section 252(a)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902(a)(2)]. Such order shall be deemed to have become effective on October 16, 1989.

“(c) Compliance Report by Comptroller General.-Before the close of the thirtieth day beginning after the date the President issues a new final order under subsection (b)(4), the Comptroller General shall submit to the Congress and the President a compliance report setting forth the information required under section 253 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 903] with respect to such order.

“(d) No Double Reduction in Medicare.-With respect to items and services described in section 6001, 6101, or 6201 [set out above] for periods for which reductions are made pursuant to the respective sections, no reduction shall be made under subsection (b).”

New Final Order of the President of the United States, Dec. 27, 1989, 54 F.R. 53469, provided:

By the authority vested in me as President by the statutes of the United States of America, including section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99–177) [2 U.S.C. 902], as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100–119) (hereafter referred to as “the Act”), and section 11002 of the Omnibus [Budget] Reconciliation Act of 1989 (Public Law 101–239) (“OBRA”) [set out above], I hereby order that the following actions be taken to implement the sequestrations and reductions determined by the Director of the Office of Management and Budget as set forth in his report dated December 27, 1989, under section 251 of the Act [2 U.S.C. 901] and section 11002 of the OBRA:

(1) Each automatic spending increase that would, but for the provisions of the Act, take effect during fiscal year 1990 is permanently sequestered or reduced as provided in section 252 of the Act and section 11002 of OBRA.

(2) The following are sequestered as provided in section 252 of the Act and section 11002 of OBRA: new budget authority; unobligated balances; new loan guarantee commitments or limitations; new direct loan obligations, commitments, or limitations; spending authority as defined in section 401(c)(2) of the Congressional Budget Act of 1974, as amended [2 U.S.C. 651(c)(2)]; and obligation limitations.

(3) For accounts making payments otherwise required by substantive law, the head of each department or agency is directed to modify the calculation of each such payment to the extent necessary to reduce the estimate of total required payments for the fiscal year by the amount specified by the Director of the Office of Management and Budget in his report of December 27, 1989.

(4) For accounts making commitments for guaranteed loans or obligations for direct loans as authorized by substantive law, the head of each department or agency is directed to reduce the level of such commitments or obligations to the extent necessary to conform to the limitations established by the Act and by OBRA and specified by the Director of the Office of Management and Budget in his report of December 27, 1989.

All reductions and sequestrations shall be made in strict accordance with the specifications of the December 27th report of the Director of the Office of Management and Budget and the requirements of section 252(b) of the Act and section 11002 of OBRA.

This order shall be deemed to have become effective on October 16, 1989, as provided in section 11002 of OBRA.

This order shall be published [in the] Federal Register.

George Bush.

Final Order of the President of the United States, Oct. 16, 1989, 54 F.R. 42795, which provided emergency deficit control measures for fiscal year 1990, was rescinded by section 11002(a) of Pub. L. 101–239, set out above, upon issuance of New Final Order of the President of the United States, Dec. 27, 1989, 54 F.R. 53469, set out above.

Initial Order of the President of the United States, Aug. 25, 1989, 54 F.R. 35627, which provided emergency deficit control measures for fiscal year 1990, was superseded by Final Order of the President, Oct. 16, 1989, 54 F.R. 42795.

1989

Final Order of the President of the United States, Oct. 15, 1988, 53 F.R. 40696.

Initial Order of the President of the United States, Aug. 25, 1988, 53 F.R. 32881.

1988

Pub. L. 100–203, title IV, §§4001, 4041(b), 4061, title VIII, §8002, Dec. 22, 1987, 101 Stat. 1330–42 , 1330-84, 1330-100, 1330-281 (Making further continuing appropriations for the fiscal year 1988).

Pub. L. 100–202, §1, Dec. 22, 1987, 101 Stat. 1329 (Omnibus Budget Reconciliation Act of 1987).

Order of the President of the United States, Nov. 20, 1987, 52 F.R. 44960.

Order of the President of the United States, Oct. 20, 1987, 52 F.R. 39205.

1986

Order of the President of the United States, Feb. 1, 1986, 51 F.R. 4291.

Pub. L. 99–366, July 31, 1986, 100 Stat. 773 (Long Title: To ratify the February 1, 1986, sequestration order of the President for Fiscal Year 1986 issued under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985). This Act (H. J. Res. 672 (99th Congress)), which affirmed the Presidential sequestration order  read as follows:

Pub. L. 99–349, title II, §202, July 2, 1986, 100 Stat. 748 (Urgent Supplemental Appropriations Act, 1986). Section  202, included in an emergency appropriation Act (H.R. 4515 (99th Congress)) requires the same percentage reduction in specified Federal payments to certain States and counties as required for all nondefense accounts under the President’s sequestration order for fiscal year 1986: 

Pub. L. 99–255, Mar. 7, 1986, 100 Stat. 39 (Long Title: To establish, for the purpose of implementing any order issued by the President for fiscal year 1986 under any law providing for sequestration of new loan guarantee commitments, a guaranteed loan limitation amount applicable to chapter 37 of title 38, United States Code, for fiscal year 1986). This Act (H.R. 4130 (99th Congress)) established a veterans’ home loan guaranty limitation amount of $18,200,000,000 reduced by 4.3 percent for purposes of implementing a sequestration order issued by the President for fiscal year 1986 requiring a reduction of such loan commitments: 

[Emphasis added. The italicized text was stricken and replaced by “limitation” and “$40,000,000,000” by the below amendment when this law (Pub. L. 99-255) was amended by Pub. L. 99-322, below, as follows:

Pub. L. 99–322, §1, May 23, 1986, 100 Stat. 494 (Long Title: “To revise further the limitation applicable to chapter 37 of title 38, United States Code, for fiscal year 1986, for the purpose of implementing any order issued by the President for such fiscal year under any law providing for the sequestration of new loan guarantee commitments).” This Act (S. 2416 (99th Congress))  amended Pub. L. 99-322 to establish a veterans’ home loan guaranty limitation amount of $40,000,000,000 reduced by 4.3 percent for purposes of implementing any sequestration order issued by the President for FY 1986 calling for a reduction of such loan commitments: 

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[BCR § 206]