Table of Contents

Balanced Budget and Emergency Deficit Control Act of 1985

Section 261

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Title II—Deficit Reduction Procedures 

PART D—BUDGETARY TREATMENT OF SOCIAL SECURITY
SEC 261. TREATMENT OF TRUST FUNDS. [1]

(a) Fiscal Years 1986 Through 1992.—

(1) In general.—Section 710 of the Social Security Act (as added by paragraph (1) of subsection (a) of section 346 of the Social Security Amendments of 1983) is amended—

(A) by striking out all beginning with “the” the first place it appears down through “Disability Insurance Trust Fund, the” and inserting in lieu thereof “the”;

(B) by striking out the comma after “Hospital Insur­ance Trust Fund”;

(C) by striking out “sections 1401, 3101, and 3111” and inserting in lieu thereof “sections 1401(b), 3101(b), and 3111(b)”:

(D) by redesignating all after the section designation as subsection (b);

(E) by inserting immediately after the section designation the following:

 “(a) The receipts and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, and the taxes imposed under sec­tions 1401(a), 3101(a), and 3111(a) of the Internal Revenue Code of 1954, shall not be included in the totals of the budget of the United States Government as submitted by the President or of the congressional budget and shall be exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government.”; and

(F) by adding at the end thereof the following new subsection:

“(c) No provision of law enacted after the date of the enactment of the Balanced Budget and Emergency Deficit Control Act of 1985 (other than a provision of an appropriation Act that ap­propriates funds authorized under the Social Security Act as in effect on the date of the enactment of the Balanced Budget and Emergency Deficit Control Act of 1985) may provide for payments from the general fund of the Treasury to the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, or for payments from either such Trust Fund to the general fund of the Treasury.”.

(2) The amendments made by paragraph (1) shall apply with respect to fiscal years beginning after September 30, 1985, and ending before October 1,1992.

(b) Fiscal Year 1993 and Thereafter.[2]—Section 710(a) of the Social Security Act (42 U.S.C. 911 note), as amended by section 346(b) of the Social Security Amendments of 1983 (to be effective with respect to fiscal years beginning after September 30, 1992) is amended—

(1) by inserting “(1)” after the subsection designation; and

(2) by adding at the end thereof the following new paragraph:

“(2) No provision of law enacted after the date of the en­actment of the Balanced Budget and Emergency Deficit Control Act of 1985 (other than a provision of an appropri­ation Act that appropriates funds authorized under the So­cial Security Act as in effect on the date of the enactment of the Balanced Budget and Emergency Deficit Control Act of 1985) may provide for payments from the general fund of the Treasury to any Trust Fund specified in paragraph (1) or for payments from any such Trust Fund to the general fund of the Treasury.”

 

 

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COUNSEL NOTES

[1] Section 13301 of the Budget Enforcement Act of 1990 had the effect of changing the law related to this section. Under this section, receipts and disbursements of Federal Old-Age and Survivors Insurance Trust Fund, Federal Disability Insurance Trust Fund, and Federal Hospital Insurance Trust Fund and taxes imposed under sections 1401, 3101, and 3111 of title 26 were not to be included in budget totals, that no law enacted after Dec. 12, 1985, except certain appropriations Act provisions, could provide for payments to or from the general fund to or from any such Trust Fund, and that disbursements of Federal Supplementary Medical Insurance Trust Fund were to be a separate functional budget category.

[2] Section 261 revised Section 710 of the Social Security Act [42 U.S.C. 911]. It was  further  amended by the Budget Enforcement Act of 1997. This section excludes spending and receipts of the Social Security program from budget totals, specifically the President’s annual budget submission. See section 13301 for an additional example of excluding Social Security from Federal budgeting such as from the President’s budget and the Congressional Budget Act of 1974.

It is codified in the U.S. Code at 42 U.S.C. 911 and currently reads:

Ҥ911. Budgetary Treatment of Trust Fund Operations.

“(a) The receipts and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund and the taxes imposed under sections 1401 and 3101 of the Internal Revenue Code of 1986 shall not be included in the totals of the budget of the United States Government as submitted by the President or of the congressional budget and shall be exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government.

“(b) No provision of law enacted after December 12, 1985 (other than a provision of an appropriation Act that appropriated funds authorized under this chapter as in effect on December 12, 1985) may provide for payments from the general fund of the Treasury to any Trust Fund specified in subsection (a) of this section or for payments from any such Trust Fund to the general fund of the Treasury.”


Legislative History Notes
PUBLIC LAWS

Pub. L. 99–177, title II, §225, Dec. 12, 1985, 99 Stat. 1037, 1093 (Balanced Budget and Emergency Deficit Control Act of 1985). 

Amendments

This section has not been amended since its enactment. Section As Enacted: Section 261 99. 1093 (Statutes At Large)

 

 

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Section 258C

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Section 271

 

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[BCR § 214]