§ 902. — Enforcing payasyougo.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 2USC902]
TITLE 2--THE CONGRESS
CHAPTER 20--EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS
SUBCHAPTER I--ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT
AMOUNT
Sec. 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 increases the deficit will trigger an offsetting sequestration.
(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) of
this section;
(B) the estimated amount of savings in direct spending
programs applicable to 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 estimates for the current year of direct
spending and receipts legislation transmitted under subsection
(d) of this section 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) of this section shall be obtained from non-exempt direct
spending accounts from actions taken in the following order:
(A) First
All reductions in automatic spending increases specified in
section 906(a) of this title shall be made.
(B) Second
If additional reductions in direct spending accounts are
required to be made, the maximum reductions permissible under
sections 906(b) of this title (guaranteed and direct student loans)
and 906(c) 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 remaining non-exempt direct spending
account shall be reduced by the uniform percentage necessary to make
the reductions in direct spending required by paragraph (1); except
that the medicare programs specified in section 906(d) of this title
shall not be reduced by more than 4 percent and the uniform
percentage applicable to all other direct spending programs 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
Corporation 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 baseline.
(d) Estimates
(1) CBO estimates
As soon as practicable after Congress completes action on any
direct spending or receipts legislation, CBO shall provide an
estimate 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 assumptions; and
(C) an explanation of any difference between 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 communication to such committees that affords such
committees the opportunity to comment before the issuance of that
report.
(4) Scope of estimates
The estimates under this section shall include the amount of
change in outlays or receipts 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 commitment in effect under current
estimates; and
(B) emergency provisions as designated under subsection (e)
of this section.
(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 designates 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 subsection (d) of this section. This subsection shall not apply to
direct spending provisions to cover agricultural crop disaster
assistance.
(Pub. L. 99-177, title II, Sec. 252, Dec. 12, 1985, 99 Stat. 1072; Pub.
L. 100-119, title I, Sec. 102(a), Sept. 29, 1987, 101 Stat. 764; Pub. L.
100-203, title VIII, Sec. 8003(e), Dec. 22, 1987, 101 Stat. 1330-282;
Pub. L. 101-508, title XIII, Sec. 13101(a), Nov. 5, 1990, 104 Stat.
1388-581; Pub. L. 103-66, title XIV, Sec. 14003(a), Aug. 10, 1993, 107
Stat. 684; Pub. L. 103-354, title I, Sec. 119(d)(2), Oct. 13, 1994, 108
Stat. 3208; Pub. L. 105-33, title X, Sec. 10205, Aug. 5, 1997, 111 Stat.
702.)
Termination of Section
For termination of section by section 275(b) of Pub. L. 99-177,
as amended, see Effective and Termination Dates note set out under
section 900 of this title.
Amendments
1997--Subsec. (a). Pub. L. 105-33, Sec. 10205(1), added subsec. (a)
and struck out heading and text of former subsec. (a). Text read as
follows: ``The purpose of this section is to assure that any legislation
(enacted after November 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, Sec. 10205(1), added subsec. (b) and
struck out heading and text of former subsec. (b) 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 direct spending and receipts legislation enacted after
Nov. 5, 1990.
Subsec. (c)(1)(B). Pub. L. 105-33, Sec. 10205(2), inserted ``and
direct'' after ``guaranteed''.
Subsec. (d). Pub. L. 105-33, Sec. 10205(3), amended heading and text
of subsec. (d) generally. Prior to amendment, text read as follows: ``As
soon as practicable after Congress completes action on any direct
spending or receipts 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
legislation. 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 containing such CBO estimate of that legislation, an OMB 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
legislation, and an explanation of any difference between the two
estimates. Those OMB estimates shall be made using current 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 Committees on the Budget, CBO,
and OMB.''
Subsec. (e). Pub. L. 105-33, Sec. 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, Sec. 14003(a)(1), which directed
the substitution of ``Fiscal year 1992-1998 enforcement'' for ``Fiscal
year 1992-1995 enforcement'' in heading, was executed by substituting
``Fiscal years 1992-1998 enforcement'' for ``Fiscal years 1992-1995
enforcement'', to reflect the probable intent of Congress.
Subsec. (d). Pub. L. 103-66, Sec. 14003(a)(2), substituted ``through
fiscal year 1998'' for ``through fiscal year 1995'' in two places.
Subsec. (e). Pub. L. 103-66, Sec. 14003(a)(3), substituted ``for any
fiscal year from 1991 through 1998'' for ``for fiscal year 1991, 1992,
1993, 1994, or 1995''.
1990--Pub. L. 101-508 amended section generally, substituting
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 reflect
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, Sec. 8003(e), substituted
``proposed'' for ``made''.
Effective Date of 1994 Amendment
Section 119(d)(2) of Pub. L. 103-354 provided that the amendment
made by that section is effective Jan. 1, 1995.
Reduction of Preexisting Paygo Balances
Pub. L. 107-312, Sec. 1, Dec. 2, 2002, 116 Stat. 2456, provided
that: ``Upon enactment of this Act [Dec. 2, 2002], the Director of the
Office of Management and Budget shall reduce any balances of direct
spending and receipts legislation for all fiscal years under section 252
of the Balanced 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, Sec. 102, Jan. 10, 2002, 115 Stat. 2342,
provided that: ``In preparing the final sequestration report for fiscal
year 2002 required by section 254(f)(3) of the Balanced Budget and
Emergency Deficit Control Act of 1985 [2 U.S.C. 904(f)(3)], the Director
of the Office of Management and Budget shall change any balance of
direct spending and receipts legislation for fiscal years 2001 and 2002
under section 252 of that Act [2 U.S.C. 902] to zero.''
Conforming Paygo Scorecard With Transportation Equity Act for 21st
Century
Pub. L. 105-178, title VIII, Sec. 8102, June 9, 1998, 112 Stat. 492,
as amended by Pub. L. 105-206, title IX, Sec. 9013(c), July 22, 1998,
112 Stat. 865, provided that: ``Upon the enactment 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 receipts for any fiscal year resulting from
this title [see Tables for classification] or from section 1102 of this
Act [23 U.S.C. 104 note].''
Reduction of Preexisting Balances and Exclusion of Effects of Pub. L.
105-33 From Paygo Scorecard
Section 10213 of Pub. L. 105-33 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 receipts
legislation for any fiscal year under section 252 of the Balanced
Budget and Emergency Deficit Control 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 enactment 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
Section 14003(c) of Pub. L. 103-66 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 Emergency 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 classification] of direct spending
and receipts legislation for that year.''
Section Referred to in Other Sections
This section is referred to in sections 645, 691c, 901, 903, 904,
906, 907, 907d of this title; title 7 section 1446; title 10 section
1414; title 16 sections 3834, 3837d, 3839c; title 19 section 3624; title
31 section 1341; title 38 section 1729A; title 39 section 2009a.
