GAO Glossary of Terms Used in the Federal Budget Process (September 2005)

Balanced Budget and Emergency Deficit Control Act of 1985

Also known as the Deficit Control Act, originally known as Gramm-Rudman-Hollings. Among other changes to the budget process, the law established “maximum deficit amounts” and a sequestration procedure to reduce spending if those targets were exceeded. The Deficit Control Act has been amended and extended several times— most significantly by the Budget Enforcement Act (BEA) of 1990. The sequestration and enforcement mechanisms expired or became ineffective at the end of fiscal year 2002. (See also Budget Enforcement Act; Gramm-Rudman-Hollings.)

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