§135. Section 405. Off Budget Agencies

CBA (Contents)

Congressional Budget Act of 1974

Section 405

TITLE IV—ADDITIONAL PROVISIONS TO IMPROVE
FISCAL PROCEDURES
 PART A—GENERAL PROVISIONS
off-budget agencies, programs, and activities

Sec. 405. (a) Notwithstanding any other provision of law, budget authority, credit authority, and estimates of outlays and receipts for activities of the Federal budget which are off-budget immediately prior to the date of enactment of this section, not including activities of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds,[1] shall be included in a budget submitted pursuant to section 1105 of title 31, United States Code,[2] and in a concurrent resolution on the budget reported pursuant to section 301 or section 304 of this Act and shall be considered, for purposes of this Act, budget authority, outlays, and spending authority[3] in accordance with definitions set forth in this Act.

(b) All receipts and disbursements of the Federal Financing Bank with respect to any obligations which are issued, sold, or guaranteed by a Federal agency shall be treated as a means of financing such agency for purposes of section 1105 of title 31, United States Code, and for purposes of this Act.

 

 

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Counsel Notes
Codification

This section is classified to the U.S. Code at 2 U.S.C. 655.

Endnotes

[1] The “activities of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds” is a reference to the operations of the Social Security program, which remains off-budget.

[2] Sec. 1105 of Title 31, United States Code, sets out the requirements for the President’s budget submission.

[3] The term “spending authority” was replaced in other sections of the Congressional Budget Act of 1974. This reference should be amended to read as “direct spending”.

Postal Service Taken Off Budget

Section 405 (CBA) brought all programs back on budget with the exception of Social Security, and made special provision for the Federal Financing Bank. In 1989, though, section 4001 of the Omnibus Budget Reconciliation Act of 1989 (Pub. L. 101-239) removed the Postal Service from the budget as well. 

Joint Explanatory Statement (BBEDCA)

The Joint Explanatory Statement of the Managers of Conference on the Balanced Budget and Emergency Deficit Control Act of 1985 included this description (it was redesignated as section 405 by the BEA 1997 when sections 401 (CBA) and 402 (CBA) were combined by that Act:

Section 406. Off-Budget Agencies, Programs, and Activities.

Section 406(a) provides that budgetary activities of federal agencies, including budget authority, credit authority, and estimates of outlays and receipts, which are off-budget immediately prior to enactment of this section, shall be included in the President’s and the Congress’ budgets.

Section 406(b) provides that all receipts and disbursements of the Federal Financing Bank with respect to any obligations issued, sold, or guaranteed by a Federal agency shall be treated as a means of financing such agency.

U.S. House of Representatives, Balanced Budget and Emergency Deficit Control Act of 1985: Conference Report to Accompany H. J. Res. 372, House Report 99-433 (December 10, 1985).

Legislative History Notes
Public Laws

Pub. L. 99–177, title II, §214, Dec. 12, 1985, 99 Stat. 1059 .Pub. L. 99–177, title II, §214, Dec. 12, 1985, 99 Stat. 1059 . The Balanced Budget and Emergency Deficit Control Act of 1985) added three new sections to the Congressional Budget Act of 1974 (Pub. L. 93–344, title IV), those being sections 405, 406, and 407. This section was at that time numbered as section 406, but was later redesignated as section 405. See immediately below.

Pub. L. 105–33, title X, §10116(c)(1), Aug. 5, 1997, 111 Stat. 692 (Budget Enforcement Act of 1997).

References in Text

When using the term “this Act” the section is referring to Pub. L. 93–344, July 12, 1974, 88 Stat. 297 (Congressional Budget and Impoundment Control Act of 1974). 

Prior Provisions

A prior section 405 of Pub. L. 93–344 (Congressional Budget Act of 1974) was renumbered as section 404 by sec. 10116 of Pub. L. 105-33 (Budget Enforcement Act of 1997) and is classified to section 654 of this Title 2, the Congress, of the U.S. Code.

Effective Date

Section 405 became effective Dec. 12, 1985, and applicable with respect to fiscal years beginning after Sept. 30, 1985. Section 275(a)(1) of Pub. L. 99–177 (BBEDCA), formerly set out as an effective and termination date. It was subsequently repealed by Pub. L. 112–25, title I, §104(a), Aug. 2, 2011, 125 Stat. 246 (Budget Control Act of 2011).

Definition Error

The term “spending authority” in the last sentence of subsection section (a) is no longer defined after the BEA 1997 amended section 402 and combined it with section 401. Sec. 10116(c)(2) of BEA 1997 amended the reference to “spending authority” in section 404) and replaced it with the term “mandatory spending”.  In that case and here, the term “direct spending” should be used.

 

 

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