2 U.S.C. § 902 — Enforcing pay-as-you-go

Page 252 TITLE 2—THE CONGRESS § 902 Par. (7)(A). Pub. L. 112–240, § 901(c)(2), substituted ‘‘March 1, 2013’’ for ‘‘January 2, 2013’’ in introductory provisions. Par. (8). Pub. L. 113–67, § 101(d)(2)(C), redesignated par. (10) as (8). Former par. (8) redesignated (6). Par. (9). Pub. L. 113–67, § 101(d)(2)(C), (J), redesignated par. (11) as (9) and substituted ‘‘paragraph (2)’’ for ‘‘paragraph (4)’’. Former par. (9) redesignated (7). Par. (10). Pub. L. 113–67, § 101(b)(1), added par. (10). Former par. (10) redesignated (8). Par. (11). Pub. L. 113–67, § 101(d)(2)(C), redesignated par. (11) as (9). Statutory Notes and Related Subsidiaries TEMPORARY SUSPENSION AND ADJUSTMENT OF MEDICARE SEQUESTRATION Pub. L. 116–136, div. A, title III, § 3709(a), Mar. 27, 2020, 134 Stat. 421, as amended by Pub. L. 116–260, div. N, title I, § 102(a), Dec. 27, 2020, 134 Stat. 1950; Pub. L. 117–7, § 1(a)(1), Apr. 14, 2021, 135 Stat. 251; Pub. L. 117–71, § 2(a)(1), Dec. 10, 2021, 135 Stat. 1506, provided that: ‘‘During the period beginning on May 1, 2020 and ending on March 31, 2022, the Medicare programs under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) shall be exempt from reduction under any sequestra- tion order issued before, on, or after the date of enact- ment of this Act [Mar. 27, 2020].’’ [Pub. L. 117–71, § 2(a)(2), Dec. 10, 2021, 135 Stat. 1506, provided that: ‘‘The amendments made by paragraph (1) [amending section 3709(a) of Pub. L. 116–136, set out above] shall take effect as if enacted as part of the CARES Act (Public Law 116–136).’’] [Pub. L. 117–7, § 1(a)(2), Apr. 14, 2021, 135 Stat. 251, pro- vided that: ‘‘The amendment made by paragraph (1) [amending section 3709(a) of Pub. L. 116–136, set out above] shall take effect as if enacted as part of the CARES Act (Public Law 116–136).’’] [Pub. L. 116–260, div. N, title I, § 102(b), Dec. 27, 2020, 134 Stat. 1950, provided that: ‘‘The amendment made by subsection (a) [amending section 3709(a) of Pub. L. 116–136, set out above] shall take effect as if enacted as part of the CARES Act (Public Law 116–136).’’] 2013 SEQUESTER Pub. L. 112–240, title IX, § 901(e), Jan. 2, 2013, 126 Stat. 2370, provided that: ‘‘On March 1, 2013, the President shall order a sequestration for fiscal year 2013 pursuant to section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 901a], as amended by this section, pursuant to which, only for the pur- poses of the calculation in sections 251A(5)(A), 251A(6)(A), and 251A(7)(A), section 251(c)(2) [former 2 U.S.C. 901(c)(2)] shall be applied as if it read as follows: ‘‘ ‘(2) For fiscal year 2013— ‘‘ ‘(A) for the security category, $544,000,000,000 in budget authority; and ‘‘ ‘(B) for the nonsecurity category, $499,000,000,000 in budget authority;’.’’ Executive Documents SEQUESTRATION ORDER FOR FISCAL YEAR 2025 PURSUANT TO SECTION 251A OF THE BALANCED BUDGET AND EMER- GENCY DEFICIT CONTROL ACT, AS AMENDED Order of President of the United States, dated Mar. 11, 2024, 89 F.R. 18531, provided: By the authority vested in me as President by the laws of the United States of America, and in accord- ance with section 251A of the Balanced Budget and Emergency Deficit Control Act (the ‘‘Act’’), as amend- ed, 2 U.S.C. 901a, I hereby order that, on October 1, 2024, direct spending budgetary resources for fiscal year 2025 in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget in its report to the Congress of March 11, 2024. All sequestrations shall be made in strict accordance with the requirements of section 251A of the Act and the specifications of the Office of Management and Budget’s report of March 11, 2024, prepared pursuant to section 251A(9) of the Act. J.R. BIDEN, JR. Sequestration orders pursuant to this section for prior fiscal years were contained in the following: 2024—Order of President of the United States, dated Mar. 13, 2023, 88 F.R. 16171. 2023—Order of President of the United States, dated Mar. 28, 2022, 87 F.R. 18603. 2022—Order of President of the United States, dated May 28, 2021, 86 F.R. 29927. 2021—Order of President of the United States, dated Feb. 10, 2020, 85 F.R. 8129. 2020—Order of President of the United States, dated Mar. 18, 2019, 84 F.R. 10401. 2019—Order of President of the United States, dated Feb. 12, 2018, 83 F.R. 6789. 2018—Order of President of the United States, dated May 23, 2017, 82 F.R. 24209. 2017—Order of President of the United States, dated Feb. 9, 2016, 81 F.R. 7693. 2016—Order of President of the United States, dated Feb. 2, 2015, 80 F.R. 6645. 2015—Order of President of the United States, dated Mar. 10, 2014, 79 F.R. 14365. 2014—Order of President of the United States, dated Apr. 10, 2013, 78 F.R. 22409. 2013—Order of President of the United States, dated Mar. 1, 2013, 78 F.R. 14633. § 902. Enforcing pay-as-you-go (a) Purpose The purpose of this section is to assure that any legislation enacted before October 1, 2002, affecting direct spending or receipts that in- creases the deficit will trigger an offsetting se- questration. (b) Sequestration (1) Timing Not later than 15 calendar days after the date Congress adjourns to end a session and on the same day as a sequestration (if any) under section 901 or 903 of this title, there shall be a sequestration to offset the amount of any net deficit increase caused by all direct spending and receipts legislation enacted before October 1, 2002, as calculated under paragraph (2). (2) Calculation of deficit increase OMB shall calculate the amount of deficit increase or decrease by adding— (A) all OMB estimates for the budget year of direct spending and receipts legislation transmitted under subsection (d); (B) the estimated amount of savings in di- rect spending programs applicable to the budget year resulting from the prior year’s sequestration under this section or section 903 of this title, if any, as published in OMB’s final sequestration report for that prior year; and (C) any net deficit increase or decrease in the current year resulting from all OMB es- timates for the current year of direct spend- ing and receipts legislation transmitted under subsection (d) that were not reflected in the final OMB sequestration report for the current year. (c) Eliminating a deficit increase (1) The amount required to be sequestered in a fiscal year under subsection (b) shall be obtained from non-exempt direct spending accounts from actions taken in the following order: Page 253 TITLE 2—THE CONGRESS § 902 1 See References in Text note below. (A) First All reductions in automatic spending in- creases specified in section 906(a) 1 of this title shall be made. (B) Second If additional reductions in direct spending accounts are required to be made, the max- imum reductions permissible under sections 906(b) of this title (guaranteed and direct stu- dent loans) and 906(c) 1 of this title (foster care and adoption assistance) shall be made. (C) Third (i) If additional reductions in direct spending accounts are required to be made, each re- maining non-exempt direct spending account shall be reduced by the uniform percentage necessary to make the reductions in direct spending required by subsection (b); except that the medicare programs specified in sec- tion 906(d) of this title shall not be reduced by more than 4 percent and the uniform percent- age applicable to all other direct spending pro- grams under this paragraph shall be increased (if necessary) to a level sufficient to achieve the required reduction in direct spending. (ii) For purposes of determining reductions under clause (i), outlay reductions (as a result of sequestration of Commodity Credit Cor- poration commodity price support contracts in the fiscal year of a sequestration) that would occur in the following fiscal year shall be credited as outlay reductions in the fiscal year of the sequestration. (2) For purposes of this subsection, accounts shall be assumed to be at the level in the base- line. (d) Estimates (1) CBO estimates As soon as practicable after Congress com- pletes action on any direct spending or re- ceipts legislation, CBO shall provide an esti- mate to OMB of that legislation. (2) OMB estimates Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any direct spending or receipts legislation, OMB shall transmit a report to the House of Representatives and to the Senate containing— (A) the CBO estimate of that legislation; (B) an OMB estimate of that legislation using current economic and technical as- sumptions; and (C) an explanation of any difference be- tween the 2 estimates. (3) Significant differences If during the preparation of the report under paragraph (2) OMB determines that there is a significant difference between the OMB and CBO estimates, OMB shall consult with the Committees on the Budget of the House of Representatives and the Senate regarding that difference and that consultation, to the extent practicable, shall include written communica- tion to such committees that affords such committees the opportunity to comment be- fore the issuance of that report. (4) Scope of estimates The estimates under this section shall in- clude the amount of change in outlays or re- ceipts for the current year (if applicable), the budget year, and each outyear excluding any amounts resulting from— (A) full funding of, and continuation of, the deposit insurance guarantee commit- ment in effect under current estimates; and (B) emergency provisions as designated under subsection (e). (5) Scorekeeping guidelines OMB and CBO, after consultation with each other and the Committees on the Budget of the House of Representatives and the Senate, shall— (A) determine common scorekeeping guidelines; and (B) in conformance with such guidelines, prepare estimates under this section. (e) Emergency legislation If a provision of direct spending or receipts legislation is enacted that the President des- ignates as an emergency requirement and that the Congress so designates in statute, the amounts of new budget authority, outlays, and receipts in all fiscal years resulting from that provision shall be designated as an emergency requirement in the reports required under sub- section (d). This subsection shall not apply to direct spending provisions to cover agricultural crop disaster assistance. (Pub. L. 99–177, title II, § 252, Dec. 12, 1985, 99 Stat. 1072; Pub. L. 100–119, title I, § 102(a), Sept. 29, 1987, 101 Stat. 764; Pub. L. 100–203, title VIII, § 8003(e), Dec. 22, 1987, 101 Stat. 1330–282; Pub. L. 101–508, title XIII, § 13101(a), Nov. 5, 1990, 104 Stat. 1388–581; Pub. L. 103–66, title XIV, § 14003(a), Aug. 10, 1993, 107 Stat. 684; Pub. L. 103–354, title I, § 119(d)(2), Oct. 13, 1994, 108 Stat. 3208; Pub. L. 105–33, title X, § 10205, Aug. 5, 1997, 111 Stat. 702; Pub. L. 113–67, div. A, title I, § 121(1), (2), Dec. 26, 2013, 127 Stat. 1174, 1175.) Editorial Notes REFERENCES IN TEXT Section 906(a) of this title, referred to in subsec. (c)(1)(A), was repealed by Pub. L. 111–139, title I, § 10(a), Feb. 12, 2010, 124 Stat. 21. Section 906(c) of this title, referred to in subsec. (c)(1)(B), was repealed by Pub. L. 111–139, title I, § 10(c), Feb. 12, 2010, 124 Stat. 22. AMENDMENTS 2013—Subsec. (b)(2)(B). Pub. L. 113–67, § 121(1), sub- stituted ‘‘applicable to the budget year’’ for ‘‘applica- ble to budget year’’. Subsec. (c)(1)(C)(i). Pub. L. 113–67, § 121(2), substituted ‘‘subsection (b)’’ for ‘‘paragraph (1)’’. 1997—Subsec. (a). Pub. L. 105–33, § 10205(1), added sub- sec. (a) and struck out heading and text of former sub- sec. (a). Text read as follows: ‘‘The purpose of this sec- tion is to assure that any legislation (enacted after No- vember 5, 1990) affecting direct spending or receipts that increases the deficit in any fiscal year covered by this Act will trigger an offsetting sequestration.’’ Subsec. (b). Pub. L. 105–33, § 10205(1), added subsec. (b) and struck out heading and text of former subsec. (b) Page 254 TITLE 2—THE CONGRESS § 903 which required sequestrations at the end of a session of Congress to offset amount of any net deficit increase in that fiscal year and prior fiscal year caused by all di- rect spending and receipts legislation enacted after Nov. 5, 1990. Subsec. (c)(1)(B). Pub. L. 105–33, § 10205(2), inserted ‘‘and direct’’ after ‘‘guaranteed’’. Subsec. (d). Pub. L. 105–33, § 10205(3), amended heading and text of subsec. (d) generally. Prior to amendment, text read as follows: ‘‘As soon as practicable after Con- gress completes action on any direct spending or re- ceipts legislation enacted after November 5, 1990, after consultation with the Committees on the Budget of the House of Representatives and the Senate, CBO shall provide OMB with an estimate of the amount of change in outlays or receipts, as the case may be, in each fiscal year through fiscal year 1998 resulting from that legis- lation. Within 5 calendar days after the enactment of any direct spending or receipts legislation enacted after November 5, 1990, OMB shall transmit a report to the House of Representatives and to the Senate con- taining such CBO estimate of that legislation, an OMB estimate of the amount of change in outlays or re- ceipts, as the case may be, in each fiscal year through fiscal year 1998 resulting from that legislation, and an explanation of any difference between the two esti- mates. Those OMB estimates shall be made using cur- rent economic and technical assumptions. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House and Senate Com- mittees on the Budget, CBO, and OMB.’’ Subsec. (e). Pub. L. 105–33, § 10205(4), struck out ‘‘, for any fiscal year from 1991 through 1998,’’ after ‘‘If’’ and ‘‘through 1995’’ after ‘‘receipts in all fiscal years’’. 1994—Subsec. (e). Pub. L. 103–354 inserted at end ‘‘This subsection shall not apply to direct spending provisions to cover agricultural crop disaster assistance.’’ 1993—Subsec. (a). Pub. L. 103–66, § 14003(a)(1), which di- rected the substitution of ‘‘Fiscal year 1992–1998 en- forcement’’ for ‘‘Fiscal year 1992–1995 enforcement’’ in heading, was executed by substituting ‘‘Fiscal years 1992–1998 enforcement’’ for ‘‘Fiscal years 1992–1995 en- forcement’’, to reflect the probable intent of Congress. Subsec. (d). Pub. L. 103–66, § 14003(a)(2), substituted ‘‘through fiscal year 1998’’ for ‘‘through fiscal year 1995’’ in two places. Subsec. (e). Pub. L. 103–66, § 14003(a)(3), substituted ‘‘for any fiscal year from 1991 through 1998’’ for ‘‘for fis- cal year 1991, 1992, 1993, 1994, or 1995’’. 1990—Pub. L. 101–508 amended section generally, sub- stituting subsecs. (a) to (e) relating to enforcement of pay-as-you-go for former subsecs. (a) to (g) relating to Presidential order. 1987—Pub. L. 100–119 amended section generally to re- flect substitution of Director of OMB for Comptroller General as official submitting reports under section 901 of this title and to revise provisions relating to content of Presidential orders issued in accordance with those reports. Subsec. (c)(2)(F)(ii). Pub. L. 100–203, § 8003(e), sub- stituted ‘‘proposed’’ for ‘‘made’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Pub. L. 103–354, title I, § 119(d)(2), Oct. 13, 1994, 108 Stat. 3208, provided that the amendment made by that section is effective Jan. 1, 1995. CONGRESSIONAL BUDGET OFFICE EXCEPTED FROM CERTAIN REQUIREMENTS Pub. L. 112–25, title I, § 104(b), Aug. 2, 2011, 125 Stat. 246, provided that: ‘‘Sections 252(d)(1), 254(c), 254(f)(3), and 254(i) of the Balanced Budget and Emergency Def- icit Control Act of 1985 [2 U.S.C. 902(d)(1), 904(c), (f)(3), (i)] shall not apply to the Congressional Budget Office.’’ REDUCTION OF PREEXISTING PAYGO BALANCES Pub. L. 107–312, § 1, Dec. 2, 2002, 116 Stat. 2456, provided that: ‘‘Upon enactment of this Act [Dec. 2, 2002], the Di- rector of the Office of Management and Budget shall re- duce any balances of direct spending and receipts legis- lation for all fiscal years under section 252 of the Bal- anced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902] to zero.’’ PAY-AS-YOU-GO ADJUSTMENT Pub. L. 107–117, div. C, § 102, Jan. 10, 2002, 115 Stat. 2342, provided that in preparing the final sequestration report for fiscal year 2002 required by section 904(f)(3) of this title, the Director of the Office of Management and Budget should change any balance of direct spending and receipts legislation for fiscal years 2001 and 2002 under this section to zero. CONFORMING PAYGO SCORECARD WITH TRANSPORTATION EQUITY ACT FOR 21ST CENTURY Pub. L. 105–178, title VIII, § 8102, June 9, 1998, 112 Stat. 492, as amended by Pub. L. 105–206, title IX, § 9013(c), July 22, 1998, 112 Stat. 865, provided that: ‘‘Upon the en- actment of this Act [June 9, 1998], the Director of the Office of Management and Budget shall not make any estimates under section 252(d) of the Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902(d)] of changes in direct spending outlays and re- ceipts for any fiscal year resulting from this title [see Tables for classification] or from section 1102 of this Act [former 23 U.S.C. 104 note].’’ REDUCTION OF PREEXISTING BALANCES AND EXCLUSION OF EFFECTS OF PUB. L. 105–33 FROM PAYGO SCORECARD Pub. L. 105–33, title X, § 10213, Aug. 5, 1997, 111 Stat. 712, provided that: ‘‘Upon the enactment of this Act [Aug. 5, 1997], the Director of the Office of Management and Budget shall— ‘‘(1) reduce any balances of direct spending and re- ceipts legislation for any fiscal year under section 252 of the Balanced Budget and Emergency Deficit Con- trol Act of 1985 [2 U.S.C. 902] to zero; and ‘‘(2) not make any estimates of changes in direct spending outlays and receipts under subsection (d) of that section for any fiscal year resulting from the en- actment of this Act [see Tables for classification] or of the Taxpayer Relief Act of 1997 [Pub. L. 105–34, see Tables for classification].’’ REDUCTION OF DIRECT SPENDING AND RECEIPTS LEGISLATION BALANCES Pub. L. 103–66, title XIV, § 14003(c), Aug. 10, 1993, 107 Stat. 685, provided that: ‘‘Upon enactment of this Act [Aug. 10, 1993], the director of the Office of Management and Budget shall reduce the balances of direct spending and receipts legislation applicable to each fiscal year under section 252 of the Balanced Budget and Emer- gency Deficit Control Act of 1985 [2 U.S.C. 902] by an amount equal to the net deficit reduction achieved through the enactment in this Act [see Tables for clas- sification] of direct spending and receipts legislation for that year.’’ § 903. Enforcing deficit targets (a) Sequestration Within 15 calendar days after Congress ad- journs to end a session (other than of the One Hundred First Congress) and on the same day as a sequestration (if any) under section 901 of this title and section 902 of this title, but after any sequestration required by section 901 of this title (enforcing discretionary spending limits) or section 902 of this title (enforcing pay-as-you- go), there shall be a sequestration to eliminate the excess deficit (if any remains) if it exceeds the margin. (b) Excess deficit; margin The excess deficit is, if greater than zero, the estimated deficit for the budget year, minus—