Table of Contents
Balanced Budget and Emergency Deficit Control Act of 1985
Section 256
Title II—Deficit Reduction Procedures
PART C—EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM DEFICIT AMOUNT
SEC. 256. GENERAL AND SPECIAL SEQUESTRATION RULES.[1]
(a) Repealed. Pub. L. 111–139, title I, §10(a), Feb. 12, 2010, 124 Stat. 21.
(b)[2] Student Loans.—For all student loans under part B or D of title IV of the Higher Education Act of 1965 made during the period when a sequestration order under section 254 is in effect as required by section 252 or 253, origination fees under sections 438(c)(2) and (6) and 455(c) and loan processing and issuance fees under section 428(f)(1)(A)(ii) of that Act shall each be increased by the uniform percentage specified in that sequestration order, and, for student loans originated during the period of the sequestration, special allowance payments under section 438(b) of that Act accruing during the period of the sequestration shall be reduced by the uniform percentage specified in that sequestration order.
(c) Repealed. Pub. L. 111–139, title I, §10(c), Feb. 12, 2010, 124 Stat. 22.
(d) Special Rules for Medicare Program.—
(1) Calculation of reduction in payment amounts.—To achieve the total percentage reduction in those programs required by section 252 or 253, subject to paragraph (2), and notwithstanding section 710 of the Social Security Act, OMB shall determine, and the applicable Presidential order under section 254 shall implement, the percentage reduction that shall apply, with respect to the health insurance programs under title XVIII of the Social Security Act—
(A) in the case of parts A and B of such title, to individual payments for services furnished during the one-year period beginning on the first day of the first month beginning after the date the order is issued (or, if later, the date specified in paragraph (4)); and
(B) in the case of parts C and D, to monthly payments under contracts under such parts for the same one-year period; such that the reduction made in payments under that order shall achieve the required total percentage reduction in those payments for that period.
(2) Uniform reduction rate; maximum permissible reduction.—Reductions in payments for programs and activities under such title XVIII pursuant to a sequestration order under section 254 shall be at a uniform rate, which shall not exceed 4 percent,[3] across all such programs and activities subject to such order.
(3) Timing of application of reductions.—
(A) In general.—Except as provided in subparagraph (B), if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for services furnished during the effective period of the order. For purposes of the previous sentence, in the case of inpatient services furnished for an individual, the services shall be considered to be furnished on the date of the individual’s discharge from the inpatient facility.
(B) Payment on the basis of cost reporting periods.—In the case in which payment for services of a provider of services is made under title XVIII of the Social Security Act on a basis relating to the reasonable cost incurred for the services during a cost reporting period of the provider, if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for costs for such services incurred at any time during each cost reporting period of the provider any part of which occurs during the effective period of the order, but only (for each such cost reporting period) in the same proportion as the fraction of the cost reporting period that occurs during the effective period of the order.
(4) Timing of subsequent sequestration order.—A sequestration order required by section 252 or 253 with respect to programs under such title XVIII shall not take effect until the first month beginning after the end of the effective period of any prior sequestration order with respect to such programs, as determined in accordance with paragraph (1).
(5) No increase in beneficiary charge in assignment related cases.—If a reduction in payment amounts is made under paragraph (1) for services for which payment under part B of title XVIII of the Social Security Act is made on the basis of an assignment described in section 1842(b)(3)(B)(ii), in accordance with section 1842(b)(6)(B), or under the procedure described in section 1870(f)(1), of such Act, the person furnishing the services shall be considered to have accepted payment of the reasonable charge for the services, less any reduction in payment amount made pursuant to a sequestration order, as payment in full.
(6) Sequestration disregarded in computing payment amounts.—The Secretary of Health and Human Services shall not take into account any reductions in payment amounts which have been or may be effected under this part, for purposes of computing any adjustments to payment rates under such title XVIII, specifically including—
(A) the part C growth percentage under section 1853(c)(6);[4]
(B) the part D annual growth rate under section 1860D–2(b)(6); and
(C) application of risk corridors to part D payment rates under section 1860D–15(e).
(7) Exemptions from sequestration.—In addition to the programs and activities specified in section 255, the following shall be exempt from sequestration under this part:
(A) Part d low-income subsidies.—Premium and cost-sharing subsidies under section 1860D–14 of the Social Security Act.
(B) Part d catastrophic subsidy.—Payments under section 1860D–15(b) and (e)(2)(B) of the Social Security Act.
(C) Qualified individual (qi) premiums.—Payments to States for coverage of Medicare cost-sharing for certain low-income Medicare beneficiaries under section 1933 of the Social Security Act.
(e) Community and Migrant Health Centers, Indian Health Services and Facilities, and Veterans’ Medical Care.—
(1) The maximum permissible reduction in budget authority for any account listed in paragraph (2) for any fiscal year, pursuant to an order issued under section 254, shall be 2 percent.
(2) The accounts referred to in paragraph (1) are as follows:
(A) Community health centers (75–0350–0–1–550).
(B) Migrant health centers (75–0350–0–1–550).
(C) Indian health facilities (75–0391–0–1–551).
(D) Indian health services (75–0390–0–1–551).
(E) Veterans’ medical care (36–0160–0–1–703).
For purposes of the preceding provisions of this paragraph, programs are identified by the designated budget account identification code numbers set forth in the Budget of the United States Government—Appendix.
(f) Treatment of Child Support Enforcement Program.—Notwithstanding any change in the display of budget accounts, any order issued by the President under section 254 shall accomplish the full amount of any required reduction in expenditures under sections 455 and 458 of the Social Security Act by reducing the Federal matching rate for State administrative costs under such program, as specified (for the fiscal year involved) in section 455(a) of such Act, to the extent necessary to reduce such expenditures by that amount.
(g) Federal Pay.—
(1) In general.—For purposes of any order issued under section 254—
(A) Federal pay under a statutory pay system, and
(B) elements of military pay,
shall be subject to reduction under an order in the same manner as other administrative expense components of the Federal budget; except that no such order may reduce or have the effect of reducing the rate of pay to which any individual is entitled under any such statutory pay system (as increased by any amount payable under section 5304 of title 5, United States Code, or section 302 of the Federal Employees Pay Comparability Act of 1990) or the rate of any element of military pay to which any individual is entitled under title 37, United States Code, or any increase in rates of pay which is scheduled to take effect under section 5303 of title 5, United States Code, section 1009 of title 37, United States Code, or any other provision of law.
(2) Definitions.—For purposes of this subsection:
(A) The term “statutory pay system” shall have the meaning given that term in section 5302(1) of title 5, United States Code.
(B) The term “elements of military pay” means—
(i) the elements of compensation of members of the uniformed services specified in section 1009 of title 37, United States Code,
(ii) allowances provided members of the uniformed services under sections 403a and 475 of such title, and
(iii) cadet pay and midshipman pay under section 203(c) of such title.
(C) The term “uniformed services” shall have the meaning given that term in section 101(3) of title 37, United States Code.
(h) Treatment of Federal Administrative Expenses.
(1) Notwithstanding any other provision of this title, administrative expenses incurred by the departments and agencies, including independent agencies, of the Federal Government in connection with any program, project, activity, or account shall be subject to reduction pursuant to an order issued under section 254, without regard to any exemption, exception, limitation, or special rule which is otherwise applicable with respect to such program, project, activity, or account under this part.
(2) Notwithstanding any other provision of law, administrative expenses of any program, project, activity, or account which is self-supporting and does not receive appropriations shall be subject to reduction under a sequester order, unless specifically exempted in this part.
(3) Payments made by the Federal Government to reimburse or match administrative costs incurred by a State or political subdivision under or in connection with any program, project, activity, or account shall not be considered administrative expenses of the Federal Government for purposes of this section, and shall be subject to reduction or sequestration under this part to the extent (and only to the extent) that other payments made by the Federal Government under or in connection with that program, project, activity, or account are subject to such reduction or sequestration; except that Federal payments made to a State as reimbursement of administrative costs incurred by such State under or in connection with the unemployment compensation programs specified in subsection (h)(1) shall be subject to reduction or sequestration under this part notwithstanding the exemption otherwise granted to such programs under that subsection.
(4) Notwithstanding any other provision of law, this subsection shall not apply with respect to the following:
(A) Comptroller of the Currency.
(B) Federal Deposit Insurance Corporation.
(C) Office of Thrift Supervision.
(D) National Credit Union Administration.
(E) National Credit Union Administration, central liquidity facility.
(F) Federal Retirement Thrift Investment Board.
(G) Resolution Trust Corporation.
(H) Farm Credit Administration.
(i) Treatment of Payments and Advances Made with Respect to Unemployment Compensation Programs.—(1) For purposes of section 254—
(A) any amount paid as regular unemployment compensation by a State from its account in the Unemployment Trust Fund (established by section 904(a) of the Social Security Act),[5]
(B) any advance made to a State from the Federal unemployment account (established by section 904(g) of such Act) under title XII of such Act and any advance appropriated to the Federal unemployment account pursuant to section 1203 of such Act, and
(C) any payment made from the Federal Employees Compensation Account (as established under section 909 of such Act) for the purpose of carrying out chapter 85 of title 5, United States Code, and funds appropriated or transferred to or otherwise deposited in such Account,
shall not be subject to reduction.
(2)(A) A State may reduce each weekly benefit payment made under the Federal-State Extended Unemployment Compensation Act of 1970 for any week of unemployment occurring during any period with respect to which payments are reduced under an order issued under section 254 by a percentage not to exceed the percentage by which the Federal payment to the State under section 204 of such Act is to be reduced for such week as a result of such order.
(B) A reduction by a State in accordance with subparagraph (A) shall not be considered as a failure to fulfill the requirements of section 3304(a)(11) of the Internal Revenue Code of 1954.
(j) Commodity Credit Corporation.—
(1) Powers and authorities of the commodity credit corporation.—This title shall not restrict the Commodity Credit Corporation in the discharge of its authority and responsibility as a corporation to buy and sell commodities in world trade, to use the proceeds as a revolving fund to meet other obligations and otherwise operate as a corporation, the purpose for which it was created.
(2) Reduction in payment made under contracts.—(A) Loan eligibility under any contract entered into with a person by the Commodity Credit Corporation prior to the time an order has been issued under section 254 shall not be reduced by an order subsequently issued. Subject to subparagraph (B), after an order is issued under such section for a fiscal year, any cash payments for loans or loan deficiencies made by the Commodity Credit Corporation shall be subject to reduction under the order.
(B) Each loan contract entered into with producers or producer cooperatives with respect to a particular crop of a commodity and subject to reduction under subparagraph (A) shall be reduced in accordance with the same terms and conditions. If some, but not all, contracts applicable to a crop of a commodity have been entered into prior to the issuance of an order under section 254, the order shall provide that the necessary reduction in payments under contracts applicable to the commodity be uniformly applied to all contracts for the next succeeding crop of the commodity, under the authority provided in paragraph (3).
(3) Delayed reduction in outlays permissible.—Notwithstanding any other provision of this title, if an order under section 254 is issued with respect to a fiscal year, any reduction under the order applicable to contracts described in paragraph (1) may provide for reductions in outlays for the account involved to occur in the fiscal year following the fiscal year to which the order applies.
(4) Uniform percentage rate of reduction and other limitations.—All reductions described in paragraph (2) which are required to be made in connection with an order issued under section 254 with respect to a fiscal year shall be made so as to ensure that outlays for each program, project, activity, or account involved are reduced by a percentage rate that is uniform for all such programs, projects, activities, and accounts, and may not be made so as to achieve a percentage rate of reduction in any such item exceeding the rate specified in the order.
(5) Dairy program.—Notwithstanding any other provision of this subsection, as the sole means of achieving any reduction in outlays under the milk price support program, the Secretary of Agriculture shall provide for a reduction to be made in the price received by producers for all milk produced in the United States and marketed by producers for commercial use. That price reduction (measured in cents per hundred weight of milk marketed) shall occur under section 201(d)(2)(A) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin on the day any sequestration order is issued under section 254, and shall not exceed the aggregate amount of the reduction in outlays under the milk price support program that otherwise would have been achieved by reducing payments for the purchase of milk or the products of milk under this subsection during the applicable fiscal year.
(6) Certain authority not to be limited.—Nothing in this joint resolution shall limit or reduce, in any way, any appropriation that provides the Commodity Credit Corporation with budget authority to cover the Corporation’s net realized losses.
(k) Effects of Sequestration.—The effects of sequestration shall be as follows:
(1) Budgetary resources sequestered from any account shall be permanently cancelled, except as provided in paragraph (6).
(2) Except as otherwise provided, the same percentage sequestration shall apply to all programs, projects, and activities within a budget account (with programs, projects, and activities as delineated in the appropriation Act or accompanying report for the relevant fiscal year covering that account, or for accounts not included in appropriation Acts, as delineated in the most recently submitted President’s budget).
(3) Administrative regulations or similar actions implementing a sequestration shall be made within 120 days of the sequestration order. To the extent that formula allocations differ at different levels of budgetary resources within an account, program, project, or activity, the sequestration shall be interpreted as producing a lower total appropriation, with the remaining amount of the appropriation being obligated in a manner consistent with program allocation formulas in substantive law.
(4) Except as otherwise provided, obligations in sequestered accounts shall be reduced only in the fiscal year in which a sequester occurs.
(5) If an automatic spending increase is sequestered, the increase (in the applicable index) that was disregarded as a result of that sequestration shall not be taken into account in any subsequent fiscal year.
(6) Budgetary resources sequestered in revolving, trust, and special fund accounts and offsetting collections sequestered in appropriation accounts shall not be available for obligation during the fiscal year in which the sequestration occurs, but shall be available in subsequent years to the extent otherwise provided in law.
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COUNSEL NOTES
COUNSEL ENDNOTES
[1] This section is classified to the U.S. Code at 2 U.S.C. 906.
[2] Subsections (b) and (d), listed here, appear here as section 256 is established in statute. Section 10 of the Statutory Pay-As-You-Go Act of 2010 (P.L. 111–139) repealed subsections (a) and (c) without redesignating the remaining subsections.
[3] A sequestration ordered pursuant to the Statutory Pay-As-You-Go Act of 2010 limits the amount of reduction in direct spending in the Medicare program to two percent rather than the four percent found here. Similarly, direct spending reductions ordered pursuant to the sequestration required under the terms of the Budget Control Act of 2011 (which set forth a new calculation of sequestration and may be found in section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985) limits the Medicare amount to two percent of program reimbursements, not the four percent limit set here.
[4] Medicare Part C, also known as “Medicare Advantage”, was established by the Balanced Budget Act of 1997: These are offered by private companies approved by Medicare. Beneficiaries still receive health insurance benefits (Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance)) though coverage from comes from the Medicare Advantage Plan and not the original Medicare program.
[5] Section 904(a) of the Social Security Act establishes the “Unemployment Trust Fund”.
Legislative History Notes
Public Laws
Pub. L. 99–177, title II, §256, Dec. 12, 1985, 99 Stat. 1037, 1086; (Balanced Budget and Emergency Deficit Control Act of 1985).
Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2085, 2095; (Tax Reform Act of 1986).
Pub. L. 100–86, title V, §506(b), Aug. 10, 1987, 101 Stat. 552, 634 ; (Competitive Equality Banking Act of 1987).
Pub. L. 100–119, title I, §§102(b)(2), (3), (11), 104(a)(3), (4), Sept. 29, 1987, 101 Stat. 754, 773, 775, 776; (Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987).
Pub. L. 101–73, title VII, §743(b), Aug. 9, 1989, 103 Stat. 183, 437; (Financial Institutions Reform, Recovery, and Enforcement Act of 1989).
Pub. L. 101–508, title XIII, §13101(d), Nov. 5, 1990, 104 Stat. 1388, 1388–589; (Budget Enforcement Act of 1990).
Pub. L. 101–509, title V, §529 [title I, §101(b)(2)(A), (4)(H)], Nov. 5, 1990, 104 Stat. 1389, 1427, 1439, 1440; (Treasury, Postal Service and General Government Appropriations Act, 1991).
Pub. L. 104–193, title I, §110(r)(2), Aug. 22, 1996, 110 Stat. 2105, 2175; (Personal Responsibility and Work Opportunity Reconciliation Act of 1996).
Pub. L. 105–33, title X, §10208(a)(1), (b)–(g), Aug. 5, 1997, 111 Stat. 251, 677, 708–710; (Budget Enforcement Act of 1997).
Pub. L. 111–139, title I, §§9(b), 10, Feb. 12, 2010, 124 Stat. 8, 21 ; (Statutory Pay-As-You-Go Act of 2010).[6]
Pub. L. 111–203, title III, §352, July 21, 2010, 124 Stat. 1376, 1546 ; (Dodd-Frank Wall Street Reform and Consumer Protection Act
Pub. L. 112–81, div. A, title VI, §631(f)(4)(B), Dec. 31, 2011, 125 Stat. 1298, 1465 (National Defense Authorization Act for Fiscal Year 2012).
Pub. L. 112–239, div. A, title X, §1076(a)(9), Jan. 2, 2013, 126 Stat. 1632, 1948 (National Defense Authorization Act for Fiscal Year 2013).
References in Text
The reference to the “Higher Education Act of 1965” in subsection (b) means Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219.
The reference to the “Social Security Act” in subsections (d) and (i)(1)(B) means Pub. L. 74-271, ch. 531, 49 Stat. 620, Aug. 14, 1935.
The reference to “section 302 of the Federal Employees Pay Comparability Act of 1990” in subsection (g)(1) means section 529 [title III, §302] of Pub. L. 101–509.
The reference to “this title” in subsections (h)(1) and (j)(1), (3) means title II (§200 et seq.) of Pub. L. 99–177, Dec. 12, 1985, 99 Stat. 1038, (Balanced Budget and Emergency Deficit Control Act of 1985).
Subsection (h)(1), referred to in subsection (h)(3), was redesignated subsection (i)(1) by Pub. L. 101–508, title XIII, §13101(d)(2), Nov. 5, 1990, 104 Stat. 1388–589 (Budget Enforcement Act of 1990).
The reference to the “Federal-State Extended Unemployment Compensation Act of 1970” in subsection (i)(2)(A) means title II of Pub. L. 91–373, Aug. 10, 1970, 84 Stat. 708.
The reference to “this joint resolution” in subsection (j)(6) means Pub. L. 99–177, Dec. 12, 1985, 99 Stat. 1037 (BBEDCA).
Amendments
2013
Subsection (g)(2)(B)(ii)
Pub. L. 112–239, §1076(a)(9), made technical amendment (changing a reference from “subsection (d)” to “subsection (c)”) to directory language of Pub. L. 112–81, §631(f)(4)(B). See the 2011 Amendment note below.
2011
Subsection (g)(2)(B)(ii)
Pub. L. 112–81, §631(f)(4)(B), as amended by Pub. L. 112–239, §1076(a)(9), substituted “475” for “405”. This amendment (modified by a technical 2013 amendment) changed clause (ii) to read as follows (emphasis added):
(ii) allowances provided members of the uniformed services under sections 403a and 475 of such title,
2010
Subsection (a)
Pub. L. 111–139, §10(a), struck out subsection (a). Text read as follows:
Automatic spending increases are increases in outlays due to changes in indexes in the following programs:
(1) Special milk program; and
(2) Vocational rehabilitation basic State grants.
In those programs all amounts other than the automatic spending increases shall be exempt from reduction under any order issued under this subchapter.
Subsection (b)
Pub. L. 111–139, §10(b), substituted:
… origination fees under sections 438(c)(2) and (6) and 455(c) and loan processing and issuance fees under section 428(f)(1)(A)(ii) of that Act shall each be increased by the uniform percentage specified in that sequestration order, and, for student loans originated during the period of the sequestration, special allowance payments under section 438(b) of that Act accruing during the period of the sequestration shall be reduced by the uniform percentage specified in that sequestration order.
for
… origination fees under sections 438(c)(2) and 455(c) of that Act shall each be increased by 0.50 percentage point.
Subsection (c)
Pub. L. 111–139, §10(c), struck out subsection (c). That text read as follows:
Any order issued by the President under section 904 of this title shall make the reduction which is otherwise required under the foster care and adoption assistance programs (established by part E of title IV of the Social Security Act) only with respect to payments and expenditures made by States in which increases in foster care maintenance payment rates or adoption assistance payment rates (or both) are to take effect during the fiscal year involved, and only to the extent that the required reduction can be accomplished by applying a uniform percentage reduction to the Federal matching payments that each such State would otherwise receive under section 474 of that Act (for such fiscal year) for that portion of the State’s payments which is attributable to the increases taking effect during that year. No State’s matching payments from the Federal Government for foster care maintenance payments or for adoption assistance maintenance payments may be reduced by a percentage exceeding the applicable domestic sequestration percentage. No State may, after December 12, 1985, make any change in the timetable for making payments under a State plan approved under part E of title IV of the Social Security Act which has the effect of changing the fiscal year in which expenditures under such part are made.
Subsection (d)(1)
Pub. L. 111–139, §10(d)(2), amended par. (1) generally. Prior to amendment, text read as follows:
To achieve the total percentage reduction in those programs required by sections 902 and 903 of this title, and notwithstanding section 710 of the Social Security Act, OMB shall determine, and the applicable Presidential order under section 904 of this title shall implement, the percentage reduction that shall apply to payments under the health insurance programs under title XVIII of the Social Security Act for services furnished after the order is issued, such that the reduction made in payments under that order shall achieve the required total percentage reduction in those payments for that fiscal year as determined on a 12-month basis.
Subsections (d)(2) through (6)
Pub. L. 111–139, §10(d)(1), (3)–(5), added paragraphs (2) and (4), redesignated former paragraphs (2), (3), and (4) as (3), (5), and (6), respectively, and amended par. (6) generally. Prior to amendment, text of par. (6) read as follows: “In computing the adjusted average per capita cost for purposes of section 1876(a)(4) of the Social Security Act, the Secretary of Health and Human Services shall not take into account any reductions in payment amounts which have been or may be effected under this subchapter.”
Subsection (d)(7)
Pub. L. 111–139, §10(d)(6), added par. (7).
Subsection (h)(4)(C) to (H)
Pub. L. 111–203 redesignated subparagraphs (D), (E), (F), and (H) as (C), (D), (E), and (F), respectively, and struck out former subparagraphs (C) and (G) which read as follows:
“(C) Office of Thrift Supervision.”
“(G) Resolution Trust Corporation.”
Subsection (k)(1)
Pub. L. 111–139, §9(b), substituted “in paragraph (6)” for “in paragraph (5)”.
1997
Pub. L. 105–33, §10208(a)(1) substituted “General and special sequestration rules” for “Exceptions, limitations, and special rules” as section catchline.
Subsection (a)
Pub. L. 105–33, §10208(b), redesignated paragraphs (2) and (3) as (1) and (2), respectively, and struck out former par. (1) which read as follows: “National Wool Act;”.
Subsection (b)
Pub. L. 105–33, §10208(b), amended subsection (b) generally, substituting new heading and text for former text consisting of paragraphs (1) to (3) relating to reductions required to be achieved from student loan programs operated under part B of title IV of the Higher Education Act of 1965 as a consequence of a sequestration order. Due to an error in drafting the section, two subsections (b) appear — the second one should be designated as subsection (c), which amended section 256(b) here. See also the conference report for H.R. 2015, H. Rept. No. 105–217, 105th Congress (p. 1005), as adopted by the House of Representatives and Senate.
Subsection (e)(1)
Pub. L. 105–33, §10208(d), substituted “shall be 2 percent.” for “shall be-” and struck out subparagraphs (A) and (B) which read as follows:
“(A) 1 percent in the case of the fiscal year 1986, and
“(B) 2 percent in the case of any subsequent fiscal year.”
Subsection (h)(2)
Pub. L. 105–33, §10208(e)(1), substituted “this subchapter” for “this joint resolution”.
Subsection (h)(4)(D)
Pub. L. 105–33, §10208(e)(2), redesignated subpar. (E) as (D) and struck out former subpar. (D) which read as follows: “Office of Thrift Supervision.”
Subsection (h)(4)(E) to (G)
Pub. L. 105–33, §10208(e)(2), redesignated subparagraphs (F), (G), and (I) as (E), (F), and (G), respectively. Former subpar. (E) redesignated (D).
Subsection (h)(4)(H)
Pub. L. 105–33, §10208(e)(2), added subpar. (H) and struck out former subpar. (H) which read as follows: “Resolution Funding Corporation.”
Subsection (h)(4)(I)
Pub. L. 105–33, §10208(e)(2), redesignated subpar. (I) as (G).
Subsections (j)(2) through (5)
Pub. L. 105–33, §10208(f), added paragraphs (2) to (5) and struck out former paragraphs (2) to (5) which related to reduction in payments made under contracts, delayed reduction in outlays permissible, uniform percentage rate of reduction and other limitations, and no double reduction for agricultural price support and income protection programs.
Subsection (k)(1)
Pub. L. 105–33, §10208(g)(1), struck out “other than a trust or special fund account” after “from any account” and inserted “, except as provided in paragraph (5)” before period.
Subsection (k)(6)
Pub. L. 105–33, §10208(g)(2), amended par. (6) generally. Prior to amendment, par. (6) read as follows:
“Except as otherwise provided, sequestration in trust and special fund accounts for which obligations are indefinite shall be taken in a manner to ensure that obligations in the fiscal year of a sequestration are reduced, from the level that would actually have occurred, by the applicable sequestration percentage.”
1996
Subsections (k), (l)
Pub. L. 104–193 redesignated subsection (l) as (k) and struck out former subsection (k) which related to special rules for JOBS portion of AFDC, providing that any order under section 904 accomplish full amount of any required sequestration of job opportunities and basic skills training program, and setting forth new allotment formula.
1990
Subsection (a)
Pub. L. 101–508, §13101(d)(1), amended subsection (a) generally, substituting provisions relating to automatic spending increases for provisions relating to effect of reductions and sequestrations.
Subsection (b)
Pub. L. 101–508, §13101(d)(3), substituted “section 904 of this title” for “section 902 of this title” in paragraphs (1) to (3).
Pub. L. 101–508, §13101(d)(2), redesignated subsection (c) as (b). Former subsection (b) redesignated (h).
Subsection (c)
Pub. L. 101–508, §13101(d)(4), inserted after first sentence:
“No State’s matching payments from the Federal Government for foster care maintenance payments or for adoption assistance maintenance payments may be reduced by a percentage exceeding the applicable domestic sequestration percentage.”
Pub. L. 101–508, §13101(d)(3), substituted “section 904 of this title” for “section 902 of this title”.
Pub. L. 101–508, §13101(d)(2), redesignated subsection (f) as (c). Former subsection (c) redesignated (b).
Subsection (d)(1)
Pub. L. 101–508, §13101(d)(5), amended par. (1) generally. Prior to amendment, par. (1) read as follows:
The maximum permissible reduction for the health insurance programs under title XVIII of the Social Security Act for any fiscal year, pursuant to an order issued under section 902 of this title, consists only of a reduction of-
(A) 1 percent in the case of fiscal year 1986, and
(B) 2 percent (or such higher percentage as may apply as determined in accordance with section 902(a)(4)(B)(ii) of this title) in the case of any subsequent fiscal year, in each separate payment amount otherwise made for a covered service under those programs without regard to this subchapter.
Subsection (d)(2)(C)
Pub. L. 101–508, §13101(d)(6), struck out subpar. (C) which read as follows: “For purposes of this paragraph, the effective period of a sequestration order for fiscal year 1986 is the period beginning on March 1, 1986, and ending on September 30, 1986.”
Subsection (e)
Pub. L. 101–508, §13101(d)(2), redesignated subsection (k) as (e). Former subsection (e) redesignated (f).
Subsection (e)(1)
Pub. L. 101–508, §13101(d)(3), substituted “section 904 of this title” for “section 902 of this title”.
Subsection (f)
Pub. L. 101–508, §13101(d)(3), substituted “section 904 of this title” for “section 902 of this title”.
Pub. L. 101–508, §13101(d)(2), redesignated subsection (e) as (f). Former subsection (f) redesignated (c).
Subsection (g)(1)
Pub. L. 101–509, §529 [title I, §101(b)(4)(H)], in closing provisions, inserted “(as increased by any amount payable under section 5304 of title 5 or section 302 of the Federal Employees Pay Comparability Act of 1990)” after “pay system” and substituted “5303” for “5305”.
Pub. L. 101–508, §13101(d)(3), substituted “section 904 of this title” for “section 902 of this title”.
Subsection (g)(2)(A)
Pub. L. 101–509, §529 [title I, §101(b)(2)(A)], substituted “5302(1)” for “5301(c)”.
Subsection (h)
Pub. L. 101–508, §13101(d)(2), redesignated subsection (b) as (h). Former subsection (h) redesignated (i).
Subsection (h)(1)
Pub. L. 101–508, §13101(d)(3), substituted “section 904 of this title” for “section 902 of this title”.
Subsection (i)
Pub. L. 101–508, §13101(d)(2), redesignated subsection (h) as (i) and struck out former subsection (i) which related to treatment of mine worker disability compensation increases as automatic spending increases.
Subsection (i)(1), (2)(A)
Pub. L. 101–508, §13101(d)(3), substituted “section 904 of this title” for “section 902 of this title”.
Subsection (j)
Pub. L. 101–508, §13101(d)(3), substituted “section 904 of this title” for “section 902 of this title” wherever appearing in paragraphs (2) to (5).
Subsection (k)
Pub. L. 101–508, §13101(d)(2), added subsection (k). Former subsection (k) redesignated (e).
Subsection (l)
Pub. L. 101–508, §13101(d)(2), added subsection (l) and struck out former subsection (l) which related to treatment of obligated balances.
1989
Subsection (b)(4)(C)
Pub. L. 101–73, §743(b)(1), substituted “Office of Thrift Supervision” for “Federal Home Loan Bank Board”.
Subsection (b)(4)(D)
Pub. L. 101–73, §743(b)(2), substituted “Office of Thrift Supervision” for “Federal Savings and Loan Insurance Corporation”.
Subsections (b)(4)(H) and (I)
Pub. L. 101–73, §743(b)(3), added subparagraphs (H) and (I).
1987
Subsection (a)(2)
Pub. L. 100–119, §102(b)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Any amount of new budget authority, unobligated balances, obligated balances, new loan guarantee commitments, new direct loan obligations, spending authority (as defined in section 651(c)(2) of this title), or obligation limitations which is sequestered or reduced pursuant to an order issued under section 902 of this title is permanently cancelled, with the exception of amounts sequestered in special or trust funds, which shall remain in such funds and be available in accordance with and to the extent permitted by law, including the provisions of this Act.”
Subsection (b)(4)
Pub. L. 100–86 added par. (4).
Subsection (b)(4)(G)
Pub. L. 100–119, §104(a)(3), added subpar. (G).
Subsection (d)(1)(B)
Pub. L. 100–119, §102(b)(11), inserted “(or such higher percentage as may apply as determined in accordance with section 902(a)(4)(B)(ii) of this title)”.
Subsection (e)
Pub. L. 100–119, §104(a)(4), substituted “Notwithstanding any change in the display of budget accounts, any order” for “Any order”.
Subsection (l)
Pub. L. 100–119, §102(b)(3), amended subsection (l) generally, striking out provisions which had created an “existing contract” exception to the rule of obligated balances not being subject to reduction under an order issued under section 902 of this title, under which existing contracts in major functional category 050 (other than (A) those contracts which included a specified penalty for cancellation or modification by the Government and which if so cancelled or modified would have resulted (due to such penalty) in a net loss to the Government for the fiscal year, and (B) those contracts the reduction of which would have violated the legal obligations of the Government) were subject to reduction, in accordance with section 901(d)(3) of this title, under an order issued under section 902 of this title.
1986
Subsection (h)(2)(B)
Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.
Effective Date of 2013 Amendment
Pub. L. 112–239, div. A, title X, §1076(a), Jan. 2, 2013, 126 Stat. 1947 , provided that the amendment made by section 1076(a)(9) is effective Dec. 31, 2011, and as if included in Pub. L. 112–81 as enacted.
Effective Date of 2010 Amendment
Pub. L. 111–203, title III, §351, July 21, 2010, 124 Stat. 1546 , provided that: “Except as provided in section 364(a) [amending section 1438 of Title 12, Banks and Banking, and enacting provisions set out as a note under section 1438 of Title 12], the amendments made by this subtitle [subtitle E (§§351–378) of title III of Pub. L. 111–203, see Tables for classification] shall take effect on the transfer date.”
[For definition of “transfer date” as used in section 351 of Pub. L. 111–203, set out above, see section 5301 of Title 12, Banks and Banking.]
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–193 effective July 1, 1997, with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Pub. L. 104–193, set out as a note under section 601 of Title 42, The Public Health and Welfare.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–509 effective on such date as the President shall determine, but not earlier than 90 days, and not later than 180 days, after Nov. 5, 1990, see section 529 [title III, §305] of Pub. L. 101–509.
Legislative History Endnotes
[6] The name of the Act as enacted is “Increasing the statutory limit on the public debt.” H. J. Res. 45 (110th Congress). The title “Statutory Pay-As-You-Go Act of 2010” is the short title of title I of that Act.
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Budget Counsel 