Budget Enforcement Act of 1990
SEC. 13401. RESTORATION OF FUNDS SEQUESTERED.
(a) Order Rescinded.—Upon the enactment of this Act, the orders issued by the President on August 25, 1990, and October 15, 1990, pursuant to section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 are hereby rescinded.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 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.
Section 13401 (BEA 1990) is not classified to the U.S. Code. It is set out in the notes for 2 U.S.C. 902.
 House Joint Resolution 666 (101st Congress), which became Pub. L. 101-412, was the continuing appropriations for the fiscal year 1991 that funded the government after appropriations had lapsed on October 5, 1990. This “government shutdown” began when funding ran out at midnight on a Friday, and continued through a Columbus Day weekend. The impact of the shutdown occurred over the Columbus Day weekend and funding was restored on Tuesday by H.J. Res. 666.
Joint Explanatory Statement (BEA 1990)
The Joint Explanatory Statement of the Managers of Conference on the Budget Enforcement Act of 1990 included this description:
iv. restoration of funds sequestered
Under current law, an initial sequestration order, issued August 25, withholds budgetary resources at the sequestered levels effective October 1. A final sequestration order, issued October 15, permanently cancels budgetary resources, effective that date, and supersedes the initial sequestration order. After their issuance, initial and final sequestration orders can be rescinded and sequestered funds restored only upon the enactment of a law specifically directing those actions. The sequester for fiscal year 1991 was suspended temporarily by four continuing appropriations measures enacted in October: H.J. Res. 655 (P.L 101-403), H.J. Res. 666 (P.L 101-412), H.J. Res. 677 (P.L 101-444), and H.J. Res. 681 (P.L 101-461).
The House bill rescinds both the initial and final sequestration order for fiscal year 1991, reverses any action taken to implement the orders, and restores any sequestered budgetary resources
The Senate amendment proposes identical language.
The conference agreement incorporates the House and Senate language rescinding the fiscal year 1991 sequester and restoring sequestered amounts.
Budget Enforcement Act of 1990: Conference Report for H.R. 5835, (H. Rept. 101-964) October 27, 1990, p. 1157.
Subsection (c) Furloughed Employees (Government Shutdown 1990)
In 1990 President George H. W. Bush negotiated a deficit reduction plan with Congressional leaders. In June, Bush indicated support for tax increases as part of a deal. On September 30, the parameters were made public, to reduce the deficit by $500 billion over five years, including $134 billion in new taxes and spending reductions in Medicare, with a temporary continuing resolution to fund the government through October 5. The new taxes in the bill were opposed by conservative Republicans led by House Minority Whip Newt Gingrich. Liberal Democrats opposed the bill’s reductions benefit programs, and it was defeated in the House of Representatives. Congress passed H. J. Res. 660 (101st Congress), but the President vetoed it since it also suspended an impending sequester. Hence a lapse in funding authority began on Saturday, October 6 and the sequestration proceeded.
For information on the effects of the shutdown, see the GAO Report: Government Shutdown: Data on Effects of 1990 Columbus Day Weekend Funding Lapse, GGD-91-17FS, (Government Accountability Office) Oct 19, 1990.
LEGISLATIVE HISTORY NOTES
Pub. L. 101–508, title XIII, §13401, Nov. 5, 1990, 104 Stat. 1388, 1388–628; (Budget Enforcement Act of 1990).