Codex
Former Sections 401 and 402
Congressional Budget Act of 1974
TITLE IV—ADDITIONAL PROVISIONS TO IMPROVE
FISCAL PROCEDURES
Former Section 401 and 402 of the Congressional Budget Act of 1974
Title IV—Additional Provisions To Improve Fiscal Procedures
bills providing new spending authority
Sec. 401. (a) Controls on Legislation Providing Spending Authority.—It shall not be in order in either the House of Representatives or the Senate to consider any bill, joint resolution, amendment motion, or conference report, as reported to its House which provides new spending authority described in subsection (c)(2) (A) or (B), unless that bill, resolution, conference report, or amendment also provides that such new spending authority as described in subsection (c)(2)(A) or (B) is to be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts.
(b) Legislation Providing Entitlement Authority.—
(1) It shall not be in order in either the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion or conference report, as reported to its House which provides new spending authority described in subsection (c)(2)C) which is to become effective before the first day of the fiscal year which begins during the calendar year in which such bill or resolution is reported.
(2) If any committee of the House of Representatives or the Senate reports any bill or resolution which provides new spending authority described in subsection (c)(2)(C) which is to become effective during a fiscal year and the amount of new budget authority which will be required for such fiscal year if such bill or resolution is enacted as so reported exceeds the appropriate allocation of new budget authority reported under section 302(b) in connection with the most recently agreed to concurrent resolution on the budget for such f year, such bill or resolution shall then be referred to the Committee on Appropriations of that House with instructions to report it, with the committee’s recommendations, within 15 calendar days (not counting any day on which that House is not in session) with the day follow the day on which it is so referred. If the Committee on Appropriations of either House fails to report a bill or resolution referred to it under this paragraph within such 15-day period, the committee shall automatically be discharge from further consideration of such bill or resolution and such bill or resolution shall be placed on the appropriate calendar.
(3) The Committee on Appropriations of each House shall have jurisdiction to report any bill or resolution referred to it under paragraph (2) with an amendment which limits the total amount of new spending authority provided in such bill or resolution.
(c) Definitions.—
(1) For purposes of this section, the term “new spending authority” means spending authority not provided by law on the effective date of this Act, including any increase in or addition to spending authority provided by law on such date.
(2) For purposes of paragraph (1), the term “spending authority” means authority (whether temporary or permanent)—
(A) to enter into contracts under which the United States is obligated to make outlays, the budget authority for which is not provided in advance by appropriation Acts;
(B) to incur indebtedness (other than indebtedness incurred under chapter 31 of title 31 of the United States Code) for the repayment of which the United States is liable, the budget authority for which is not provided in advance by appropriation Acts;
(C) to make payments (including loans and grants), the budget authority for which is not provided for in advance by appropriation Acts, to any person or government if, under the provisions of the law containing such authority, the United States is obligated to make such payments to persons or governments who meet the requirements established by such law;
(D) to forego the collection by the United States of proprietary offsetting receipts, the budget authority for which is not provided in advance by appropriation Acts to offset such foregone receipts; and
(E) to make payments by the United States (including loans, grants, and payments from revolving funds) other than those covered by subparagraph (A), (B), (C), or (D), the budget authority for which is not provided in advance by appropriation Acts.
Such term does not include authority to insure or guarantee the repayment of indebtedness incurred by another person or government.
(d) Exceptions.—
(1) Subsections (a) and (b) shall not apply to new spending authority if the budget authority for outlays which will result from such new spending authority is derived—
(A) from a trust fund established by the Social Security Act (as in effect on the date of the enactment of this Act); or
(B) from any other trust fund, 90 percent or more of the receipts of which consist or will consist of amounts (transferred from the general fund of the Treasury) equivalent to amounts of taxes (related to the purposes for which such outlays are or will be made) received in the Treasury under specified provisions of the Internal Revenue Code of 1954.
(2) Subsections (a) and (b) shall not apply to new spending authority which is an amendment to or extension of the State and Local Fiscal Assistance Act of 1972, or a continuation of the program of fiscal assistance to State and local governments provided by that Act, to the extent so provided in the bill or resolution providing such authority.
(3) Subsections (a) and (b) shall not apply to new spending authority to the extent that—
(A) the outlays resulting therefrom are made by an organization which is (i) a mixed-ownership Government corporation (as defined in section 201 of the Government Corporation Control Act), or (ii) a wholly owned Government corporation (as defined in section 101 of such Act) which is specifically exempted by law from compliance with any or all of the provisions of that Act, as of the date of enactment of the Balanced Budget and Emergency Deficit Control Act of 1985; or
(B) the outlays resulting therefrom consist exclusively of the proceeds of gifts or bequests made to the United states for a specific purpose.
legislation providing new credit authority
Sec. 402. (a) Controls on Legislation Proving New Credit Authority.—It shall not be in order in either the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, or conference report, as reported to its House, which provides new credit authority described in subsection (b)(1), unless that bill, resolution, conference report, or amendment also provides that such new credit authority is to be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts.
(b) Definition.— For purposes of this Act, the term “new credit authority” means credit authority (as defined in section 3(10) of this Act) not provided by law on the effective date of this section including any increase in or addition to credit authority provided by law on such date.
Counsel Notes
Amendment by the Budget Enforcement Act of 1997
“Sec. 10116. Amendment to section 401 and repeal of section 402“ of the Budget Enforcement Act of 1997
amended section 401 (CBA) and combined it with section 402, which was then repealed and the other sections of title IV redesignated accordingly.
Deschler’s Precedents
See also Deschler’s Precedents Notes:
§ 12.2 Constituting New Spending Authority
§ 13. Section 401(b)
§ 14. Former Section 402(a)
[Deschler’s Precedents of the U.S. House of Representatives, Volume 18, Chapter 41.]
Budget Counsel 