§ 904. — Reports and orders.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 2USC904]
TITLE 2--THE CONGRESS
CHAPTER 20--EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS
SUBCHAPTER I--ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT
AMOUNT
Sec. 904. Reports and orders
(a) Timetable
The timetable with respect to this subchapter for any budget year is
as follows:
Date: Action to be completed:
January 21................................ Notification regarding
optional adjustment of
maximum deficit amount.
5 days before the President's budget CBO sequestration
submission. preview report.
The President's budget submission......... OMB sequestration
preview report.
August 10................................. Notification regarding
military personnel.
August 15................................. CBO sequestration update
report.
August 20................................. OMB sequestration update
report.
10 days after end of session.............. CBO final sequestration
report.
15 days after end of session.............. OMB final sequestration
report; Presidential
order.
(b) Submission and availability of reports
Each report required by this section shall be submitted, in the case
of CBO, to the House of Representatives, the Senate and OMB and, in the
case of OMB, to the House of Representatives, the Senate, and the
President on the day it is issued. On the following day a notice of the
report shall be printed in the Federal Register.
(c) Sequestration preview reports
(1) Reporting requirement
On the dates specified in subsection (a) of this section, OMB
and CBO shall issue a preview report regarding discretionary, pay-
as-you-go, and deficit sequestration based on laws enacted through
those dates.
(2) Discretionary sequestration report
The preview reports shall set forth estimates for the current
year and each subsequent year through 2002 of the applicable
discretionary spending limits for each category and an explanation
of any adjustments in such limits under section 901 of this title.
(3) Pay-as-you-go sequestration reports
The preview reports shall set forth, for the current year and
the budget year, estimates for each of the following:
(A) The amount of net deficit increase or decrease, if any,
calculated under subsection 902(b) of this title.
(B) A list identifying each law enacted and sequestration
implemented after November 5, 1990, included in the calculation
of the amount of deficit increase or decrease and specifying the
budgetary effect of each such law.
(C) The sequestration percentage or (if the required
sequestration percentage is greater than the maximum allowable
percentage for medicare) percentages necessary to eliminate a
deficit increase under section 902(c) of this title.
(4) Deficit sequestration reports
The preview reports shall set forth for the budget year
estimates for each of the following:
(A) The maximum deficit amount, the estimated deficit
calculated under section 903(b) of this title, the excess
deficit, and the margin.
(B) The amount of reductions required under section 902 of
this title, the excess deficit remaining after those reductions
have been made, and the amount of reductions required from
defense accounts and the reductions required from non-defense
accounts.
(C) The sequestration percentage necessary to achieve the
required reduction in defense accounts under section 903(d) of
this title.
(D) The reductions required under sections 903(e)(1) and
903(e)(2) of this title.
(E) The sequestration percentage necessary to achieve the
required reduction in non-defense accounts under section
903(e)(3) of this title.
The CBO report need not set forth the items other than the maximum
deficit amount for fiscal year 1992, 1993, or any fiscal year for
which the President notifies the House of Representatives and the
Senate that he will adjust the maximum deficit amount under the
option under section 903(g)(1)(B) of this title.
(5) Explanation of differences
The OMB reports shall explain the differences between OMB and
CBO estimates for each item set forth in this subsection.
(d) Notification regarding military personnel
On or before the date specified in subsection (a) of this section,
the President shall notify the Congress of the manner in which he
intends to exercise flexibility with respect to military personnel
accounts under section 905(f) of this title.
(e) Sequestration update reports
On the dates specified in subsection (a) of this section, OMB and
CBO shall issue a sequestration update report, reflecting laws enacted
through those dates, containing all of the information required in the
sequestration preview reports.
(f) Final sequestration reports
(1) Reporting requirement
On the dates specified in subsection (a) of this section, OMB
and CBO shall issue a final sequestration report, updated to reflect
laws enacted through those dates.
(2) Discretionary sequestration reports
The final reports shall set forth estimates for each of the
following:
(A) For the current year and each subsequent year through
2002 the applicable discretionary spending limits for each
category and an explanation of any adjustments in such limits
under section 901 of this title.
(B) For the current year and the budget year the estimated
new budget authority and outlays for each category and the
breach, if any, in each category.
(C) For each category for which a sequestration is required,
the sequestration percentages necessary to achieve the required
reduction.
(D) For the budget year, for each account to be sequestered,
estimates of the baseline level of sequestrable budgetary
resources and resulting outlays and the amount of budgetary
resources to be sequestered and resulting outlay reductions.
(3) Pay-as-you-go and deficit sequestration reports
The final reports shall contain all the information required in
the pay-as-you-go and deficit sequestration preview reports. In
addition, these reports shall contain, for the budget year, for each
account to be sequestered, estimates of the baseline level of
sequestrable budgetary resources and resulting outlays and the
amount of budgetary resources to be sequestered and resulting outlay
reductions. The reports shall also contain estimates of the effects
on outlays of the sequestration in each outyear for direct spending
programs.
(4) Explanation of differences
The OMB report shall explain any differences between OMB and CBO
estimates of the amount of any net deficit change calculated under
subsection \1\ 902(b) of this title, any excess deficit, any breach,
and any required sequestration percentage. The OMB report shall also
explain differences in the amount of sequesterable \2\ resources for
any budget account to be reduced if such difference is greater than
$5,000,000.
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\1\ So in original. Probably should be ``section''.
\2\ So in original. Probably should be ``sequestrable''.
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(5) Presidential order
On the date specified in subsection (a) of this section, if in
its final sequestration report OMB estimates that any sequestration
is required, the President shall issue an order fully implementing
without change all sequestrations required by the OMB calculations
set forth in that report. This order shall be effective on issuance.
(g) Within-session sequestration reports and order
If an appropriation for a fiscal year in progress is enacted (after
Congress adjourns to end the session for that budget year and before
July 1 of that fiscal year) that causes a breach, 10 days later CBO
shall issue a report containing the information required in paragraph
(f)(2). Fifteen days after enactment, OMB shall issue a report
containing the information required in paragraphs (f)(2) and (f)(4). On
the same day as the OMB report, the President shall issue an order fully
implementing without change all sequestrations required by the OMB
calculations set forth in that report. This order shall be effective on
issuance.
(h) GAO compliance report
Upon request of the Committee on the Budget of the House of
Representatives or the Senate, the Comptroller General shall submit to
the Congress and the President a report on--
(1) the extent to which each order issued by the President under
this section complies with all of the requirements contained in this
subchapter, either certifying that the order fully and accurately
complies with such requirements or indicating the respects in which
it does not; and
(2) the extent to which each report issued by OMB or CBO under
this section complies with all of the requirements contained in this
subchapter, either certifying that the report fully and accurately
complies with such requirements or indicating the respects in which
it does not.
(i) Low-growth report
At any time, CBO shall notify the Congress if--
(1) during the period consisting of the quarter during which
such notification is given, the quarter preceding such notification,
and the 4 quarters following such notification, CBO or OMB has
determined that real economic growth is projected or estimated to be
less than zero with respect to each of any 2 consecutive quarters
within such period; or
(2) the most recent of the Department of Commerce's advance
preliminary or final reports of actual real economic growth indicate
that the rate of real economic growth for each of the most recently
reported quarter and the immediately preceding quarter is less than
one percent.
(j) Economic and technical assumptions
In all reports required by this section, OMB shall use the same
economic and technical assumptions as used in the most recent budget
submitted by the President under section 1105(a) of title 31.
(Pub. L. 99-177, title II, Sec. 254, Dec. 12, 1985, 99 Stat. 1078; Pub.
L. 100-119, title I, Secs. 102(b)(1), 106(e)(2), Sept. 29, 1987, 101
Stat. 773, 781; Pub. L. 101-508, title XIII, Sec. 13101(a), Nov. 5,
1990, 104 Stat. 1388-586; Pub. L. 103-66, title XIV, Secs. 14002(c)(2),
14003(b), Aug. 10, 1993, 107 Stat. 684, 685; Pub. L. 103-322, title
XXXI, Sec. 310001(g)(2), Sept. 13, 1994, 108 Stat. 2105; Pub. L. 104-
316, title I, Sec. 102(d), Oct. 19, 1996, 110 Stat. 3828; Pub. L. 105-
33, title X, Sec. 10206, Aug. 5, 1997, 111 Stat. 704.)
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.
Codification
November 5, 1990, referred to in subsec. (c)(3)(B), was in the
original ``the date of enactment of this section'', which was translated
as meaning the date of enactment of Pub. L. 101-508, which amended this
section generally, to reflect the probable intent of Congress.
Amendments
1997--Subsec. (c). Pub. L. 105-33, Sec. 10206(1), (2), redesignated
subsec. (d) as (c), substituted ``2002'' for ``1998'' in par. (2), and
struck out heading and text of former subsec. (c). Text read as follows:
``With respect to budget year 1994 or 1995, on the date specified in
subsection (a) of this section the President shall notify the House of
Representatives and the Senate of his decision regarding the optional
adjustment of the maximum deficit amount (as allowed under section
903(g)(1)(B) of this title).''
Subsec. (d). Pub. L. 105-33, Sec. 10206(1), (3), redesignated
subsec. (e) as (d) and substituted ``section 905(f)'' for ``section
905(h)''. Former subsec. (d) redesignated (c).
Subsec. (e). Pub. L. 105-33, Sec. 10206(1), redesignated subsec. (f)
as (e). Former subsec. (e) redesignated (d).
Subsec. (f). Pub. L. 105-33, Sec. 10206(1), redesignated subsec. (g)
as (f). Former subsec. (f) redesignated (e).
Subsec. (f)(2)(A). Pub. L. 105-33, Sec. 10206(4)(A), substituted
``2002'' for ``1998''.
Subsec. (f)(3). Pub. L. 105-33, Sec. 10206(4)(B), struck out
``through 1998'' after ``each outyear''.
Subsec. (f)(4) to (6). Pub. L. 105-33, Sec. 10206(4)(C),
redesignated pars. (5) and (6) as (4) and (5), respectively, and struck
out heading and text of former par. (4). Text read as follows: ``The
final reports shall set forth for the budget year estimates for each of
the following:
``(A) The amount of budget authority appropriated from the
Violent Crime Reduction Trust Fund and outlays resulting from those
appropriations.
``(B) The sequestration percentage and reductions, if any,
required under section 901a of this title.''
Subsec. (g). Pub. L. 105-33, Sec. 10206(1), (5), redesignated
subsec. (h) as (g) and substituted ``paragraph (f)(2)'' for ``paragraph
(g)(2)'' and ``paragraphs (f)(2) and (f)(4)'' for ``paragraphs (g)(2)
and (g)(4)''. Former subsec. (g) redesignated (f).
Subsecs. (h) to (k). Pub. L. 105-33, Sec. 10206(1), redesignated
subsecs. (i) to (k) as (h) to (j), respectively. Former subsec. (h)
redesignated (g).
1996--Subsec. (a). Pub. L. 104-316, Sec. 102(d)(1), struck out item
at end of timetable relating to GAO compliance report.
Subsec. (i). Pub. L. 104-316, Sec. 102(d)(2), in introductory
provisions substituted ``Upon request of the Committee on the Budget of
the House of Representatives or the Senate'' for ``On the date specified
in subsection (a) of this section''.
1994--Subsec. (g)(4) to (6). Pub. L. 103-322 added par. (4) and
redesignated former pars. (4) and (5) as (5) and (6), respectively.
1993--Subsecs. (d)(2), (g)(2)(A), (3). Pub. L. 103-66 substituted
``1998'' for ``1995''.
1990--Pub. L. 101-508 amended section generally, substituting
provisions setting out timetable and requisite content of reports and
orders developed as part of sequestration process for former provisions
relating to special Congressional procedures in the event of recession,
Congressional responses to Presidential orders, and treatment of certain
resolutions as reconciliation bills.
1987--Subsec. (b)(1)(A). Pub. L. 100-119, Sec. 102(b)(1),
substituted ``the Director of OMB'' for ``the Comptroller General''.
Subsec. (b)(1)(E). Pub. L. 100-119, Sec. 106(e)(2), inserted
provisions relating to maximum deficit amount for fiscal year 1988 or
1989.
Fiscal Year Deficit Control Measures
1991--Pub. L. 102-27, title IV, Sec. 401(b), Apr. 10, 1991, 105
Stat. 154, provided that: ``Upon the enactment of this Act [Apr. 10,
1991], the order issued by the President on November 9, 1990 [set out
below], pursuant to sections 251 and 254 of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended, [2 U.S.C. 901, 904]
is hereby rescinded. Any action taken to implement this order shall be
reversed, and any sequestrable resource that has been reduced or
sequestered by such order is hereby restored, revived, or released and
shall be available to the same extent and for the same purpose as if the
order had not been issued.''
Section 13401 of Pub. L. 101-508 provided that:
``(a) Order Rescinded.--Upon the enactment of this Act [Nov. 5,
1990], the orders issued by the President on August 25, 1990, and
October 15, 1990 [set out below], pursuant to section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 902]
are hereby rescinded.
``(b) Amounts Restored.--Any action taken to implement the orders
referred to in subsection (a) shall be reversed, and any sequestrable
resource that has been reduced or sequestered by such orders is hereby
restored, revived, or released and shall be available to the same extent
and for the same purpose as if the orders had not been issued.
``(c) Furloughed Employees.--(1) Federal employees furloughed as a
result of the lapse in appropriations from midnight October 5, 1990,
until the enactment of House Joint Resolution 666 [Pub. L. 101-412,
which was approved Oct. 9, 1990] shall be compensated at their standard
rate of compensation for the period during which there was a lapse in
appropriations.
``(2) All obligations incurred in anticipation of the appropriations
made and authority granted by House Joint Resolution 666 for the
purposes of maintaining the essential level of activity to protect life
and property and bringing about orderly termination of government
functions are hereby ratified and approved if otherwise in accord with
the provisions of that Act [Pub. L. 101-412, Oct. 9, 1990, 104 Stat.
894].''
Pub. L. 101-467, Sec. 105, Oct. 28, 1990, 104 Stat. 1087, provided
that:
``(a) Any order on sequestration for fiscal year 1991 issued before,
on, or after the date of enactment of this joint resolution [Oct. 28,
1990] pursuant to section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action
shall be taken to implement any such order.
``(b) Subsection (a) shall cease to be effective on the date set
forth in section 101(b)(B) [Nov. 5, 1990].''
Pub. L. 101-461, Sec. 113, Oct. 25, 1990, 104 Stat. 1078, provided
that:
``(a) Any order on sequestration for fiscal year 1991 issued before,
on, or after the date of enactment of this joint resolution [Oct. 25,
1990] pursuant to section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action
shall be taken to implement any such order.
``(b) Subsection (a) shall cease to be effective on the date set
forth in section 108(c) [Oct. 27, 1990].''
Pub. L. 101-444, Sec. 113, Oct. 19, 1990, 104 Stat. 1033, provided
that:
``(a) Any order on sequestration for fiscal year 1991 issued before,
on, or after the date of enactment of this joint resolution [Oct. 19,
1990] pursuant to section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action
shall be taken to implement any such order.
``(b) Subsection (a) shall cease to be effective on the date set
forth in section 108(c) [Oct. 24, 1990].''
Pub. L. 101-412, Sec. 113, Oct. 9, 1990, 104 Stat. 897, provided
that:
``(a) Any order on sequestration for fiscal year 1991 issued before,
on, or after the date of enactment of this joint resolution [Oct. 9,
1990] pursuant to section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action
shall be taken to implement any such order.
``(b) Subsection (a) shall cease to be effective on the date set
forth in section 108(c) [Oct. 19, 1990].''
Pub. L. 101-403, title I, Sec. 113, Oct. 1, 1990, 104 Stat. 870,
provided that:
``(a) Any order on sequestration for fiscal year 1991 issued before,
on, or after the date of enactment of this joint resolution [Oct. 1,
1990] pursuant to section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985 [2 U.S.C. 902] is suspended and no action
shall be taken to implement any such order.
``(b) Subsection (a) shall cease to be effective on the date set
forth in section 108(c) [Oct. 5, 1990].''
Final Order of the President of the United States, Nov. 9, 1990, 26
Weekly Compilation of Presidential Documents 1797, Nov. 12, 1990,
provided:
By the authority vested in me as President by the statutes of the
United States of America, including section 254 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (Public Law 99-177) [2 U.S.C.
904], as amended by the Balanced Budget and Emergency Deficit Control
Reaffirmation Act of 1987 (Public Law 100-119) and Title XIII of the
Omnibus Reconciliation Act of 1990 (Public Law 101-508) (hereafter
referred to as ``the Act''), I hereby order that the following actions
be taken immediately to implement the sequestrations and reductions
determined by the Director of the Office of Management and Budget as set
forth in his report dated November 9, 1990, under sections 251 and 254
of the Act [2 U.S.C. 901, 904]:
(1) Budgetary resources for each non-exempt account within the
international category of discretionary spending shall be reduced as
specified by the Director of the Office of Management and Budget in his
report of November 9, 1990.
(2) Pursuant to sections 250(c)(6) and 251 [2 U.S.C. 900(c)(6),
901], budgetary resources subject to sequestration shall be new budget
authority; new loan guarantee commitments or limitations; new direct
loan obligations, commitments, or limitations; and obligation
limitations.
(3) For accounts making commitments for guaranteed loans as
authorized by substantive law, the head of each Department or agency is
directed to reduce the level of such commitments or obligations to the
extent necessary to conform to the limitations established by the Act
[Pub. L. 99-177, title II, see Short Title note set out under 2 U.S.C.
900] and specified by the Director of the Office of Management and
Budget in his report of November 9, 1990.
All sequestrations shall be made in strict accordance with the
specifications of the November 9th report of the Director of the Office
of Management and Budget and the requirements of sections 251 and 254.
George Bush.
Final Order of the President of the United States, Oct. 15, 1990, 55
F.R. 41977, provided:
By the authority vested in me as President by the statutes of the
United States of America, including section 252 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (Public Law 99-177) [2 U.S.C.
902], as amended by the Balanced Budget and Emergency Deficit Control
Reaffirmation Act of 1987 (Public Law 100-119) (hereafter referred to as
``the Act''), I hereby order that the following actions shall be taken
to implement the sequestrations and reductions determined by the
Director of the Office of Management and Budget as set forth in his
report dated October 15, 1990, under section 251 of the Act [2 U.S.C.
901]:
(1) Each automatic spending increase that would, but for the
provisions of the Act, take effect during fiscal year 1991 is
permanently sequestered or reduced as provided in section 252.
(2) The following are sequestered as provided in section 252: new
budget authority; unobligated balances; new loan guarantee commitments
or limitations; new direct loan obligations, commitments, or
limitations; spending authority as defined in section 401(c)(2) of the
Congressional Budget Act of 1974, as amended [2 U.S.C. 651(c)(2)]; and
obligation limitations.
(3) For accounts making payments otherwise required by substantive
law, the head of each Department or agency is directed to modify the
calculation of each such payment to the extent necessary to reduce the
estimate of total required payments for the fiscal year by the amount
specified by the Director of the Office of Management and Budget in his
report of October 15, 1990.
(4) For accounts making commitments for guaranteed loans as
authorized by substantive law, the head of each Department or agency is
directed to reduce the level of such commitments or obligations to the
extent necessary to conform to the limitations established by the Act
and specified by the Director of the Office of Management and Budget in
his report of October 15, 1990.
All reductions and sequestrations shall be made in strict accordance
with the specifications of the October 15th report of the Director of
the Office of Management and Budget and the requirements of section
252(b).
This order supersedes the Initial Order issued on August 25, 1990
[see above].
This order shall be published in the Federal Register.
George Bush.
Initial Order of the President of the United States, Aug. 25, 1990,
55 F.R. 35133, which provided emergency deficit control measures for
fiscal year 1991, was superseded by Final Order of the President, Oct.
15, 1990, 55 F.R. 41977, set out above.
1990--Pub. L. 101-239, title VI, Sec. 6001, Dec. 19, 1989, 103 Stat.
2139, provided that: ``Notwithstanding any other provision of law
(including section 11002 [set out below] or any other provision of this
Act, other than section 6201 [set out below]), the reductions in the
amount of payments required under title XVIII of the Social Security Act
[42 U.S.C. 1395 et seq.] made by the final sequester order issued by the
President on October 16, 1989 [set out below], pursuant to section
252(b) of the Balanced Budget and Emergency Deficit Control Act of 1985
[2 U.S.C. 902(b)] shall continue to be effective (as provided by
sections 252(a)(4)(B) and 256(d)(2) of such Act [2 U.S.C. 902(a)(4)(B),
906(d)(2)]) through December 31, 1989, with respect to payments for
items and services under part A of such title [42 U.S.C. 1395c et seq.]
(including payments under section 1886 of such title [42 U.S.C. 1395ww]
attributable or allocated to such part). Each such payment made for
items and services provided during fiscal year 1990 after such date
shall be increased by 1.42 percent above what it would otherwise be
under this Act.''
Pub. L. 101-239, title VI, Sec. 6101, Dec. 19, 1989, 103 Stat. 2168,
provided that: ``Notwithstanding any other provision of law (including
any other provision of this Act, other than section 6201 [set out
below]), the reductions in the amount of payments required under title
XVIII of the Social Security Act [42 U.S.C. 1395 et seq.] made by the
final sequester order issued by the President on October 16, 1989,
pursuant to section 252(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 [2 U.S.C. 902(b)] shall continue to be effective (as
provided by sections 252(a)(4)(B) and 256(d)(2) of such Act [2 U.S.C.
902(a)(4)(B), 906(d)(2)]) through March 31, 1990, with respect to
payments for items and services under part B of such title [42 U.S.C.
1395j et seq.].''
Pub. L. 101-239, title VI, Sec. 6201, Dec. 19, 1989, 103 Stat. 2225,
provided that: ``Notwithstanding any other provision of law (including
section 11002 [set out below] or any other provision of this Act), the
reductions in the amount of payments required under title XVIII of the
Social Security Act [42 U.S.C. 1395 et seq.] made by the final sequester
order issued by the President on October 16, 1989 [set out below],
pursuant to section 252(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 [2 U.S.C. 902(b)] shall continue to be effective (as
provided by sections 252(a)(4)(B) and 256(d)(2) of such Act [2 U.S.C.
902(a)(4)(B), 906(d)(2)]) through December 31, 1989, with respect to
payments under section 1833(a)(1)(A) or 1876 of the Social Security Act
[42 U.S.C. 1395l(a)(1)(A), 1395mm], section 402 of the Social Security
Amendments of 1967 [section 402 of Pub. L. 90-248, enacting 42 U.S.C.
1395b-1, and amending 42 U.S.C. 1395ll], or section 222 of the Social
Security Amendments of 1972 [section 222 of Pub. L. 92-603, amending 42
U.S.C. 1395b-1 and enacting provisions set out as a note under 42 U.S.C.
1395b-1]. Each such payment made during fiscal year 1990 after such date
shall be increased by 1.42 percent above what it would otherwise be
under this Act.''
Pub. L. 101-239, title XI, Sec. 11002, Dec. 19, 1989, 103 Stat.
2490, provided that:
``(a) Order Rescinded.--(1) Upon the issuance of a new final order
by the President under subsection (b)(4) [set out below], the order
issued by the President on October 16, 1989 [set out below], pursuant to
section 252 of the Balanced Budget and Emergency Deficit Control Act of
1985 [2 U.S.C. 902] is rescinded.
``(2) Except as otherwise provided in sections 6001, 6101, and 6201
[set out above], and subject to subsection (b), any action taken to
implement the order issued by the President on October 16, 1989, shall
be reversed, and any sequesterable budgetary resource that has been
reduced or sequestered by such order is restored, revived, or released
and shall be available to the same extent and for the same purposes as
if an order had not been issued.
``(3) For purposes of section[s] 702(d) and 1101(c) of the Ethics
Reform Act of 1989 [Pub. L. 101-194, 5 U.S.C. 5305 note, 2 U.S.C. 31-1
note], the order issued by the President on October 16, 1989, pursuant
to section 252 of the Balanced Budget and Emergency Deficit Control Act
of 1985 [2 U.S.C. 902] is deemed to be rescinded on January 31, 1990.
``(b) Adjusted Reduction.--
``(1) Before the close of the fifteenth calendar day beginning
after the date of enactment of this Act [Dec. 19, 1989], the
Director of OMB shall issue a revised report using the exact budget
baseline set forth in the report of October 16, 1989 [set out
below], and following the requirements, specifications, definitions,
and calculations required by the Balanced Budget and Emergency
Deficit Control Act of 1985 [Pub. L. 99-177, title II, see Short
Title note set out under 2 U.S.C. 901] for the final report issued
under section 251(c)(2) [2 U.S.C. 901(c)(2)] for fiscal year 1990,
except that the aggregate outlay reduction to be achieved shall be
an amount equal to $16.1 billion multiplied by 130 divided by 365.
Calculations made to carry out the preceding sentence shall take
into account the reductions and cancellations achieved by paragraphs
(2) and (3) and shall not be affected by subsection (d).
``(2) Notwithstanding any provision of law other than this
paragraph, the reductions and cancellations in the student loan
programs described in section 256(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985 [2 U.S.C. 906(c)] achieved by
the order issued by the President on October 16, 1989, shall remain
in effect through December 31, 1989, and no reductions or
cancellations in such programs shall be made by the order issued
under paragraph (4).
``(3) Notwithstanding any provision of law other than this
paragraph, any automatic spending increase suspended or cancelled by
the order issued by the President on October 16, 1989, shall be paid
at a rate that is 130/365ths less than the rate that would have been
paid under the laws providing for such automatic spending increase.
``(4) On the date that the Director submits a revised report to
the President under paragraph (1) for fiscal year 1990, the
President shall issue a new final order to make all of the
reductions and cancellations specified in such report in conformity
with section 252(a)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985 [2 U.S.C. 902(a)(2)]. Such order shall be deemed
to have become effective on October 16, 1989.
``(c) Compliance Report by Comptroller General.--Before the close of
the thirtieth day beginning after the date the President issues a new
final order under subsection (b)(4), the Comptroller General shall
submit to the Congress and the President a compliance report setting
forth the information required under section 253 of the Balanced Budget
and Emergency Deficit Control Act of 1985 [2 U.S.C. 903] with respect to
such order.
``(d) No Double Reduction in Medicare.--With respect to items and
services described in section 6001, 6101, or 6201 [set out above] for
periods for which reductions are made pursuant to the respective
sections, no reduction shall be made under subsection (b).''
New Final Order of the President of the United States, Dec. 27,
1989, 54 F.R. 53469, provided:
By the authority vested in me as President by the statutes of the
United States of America, including section 252 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (Public Law 99-177) [2 U.S.C.
902], as amended by the Balanced Budget and Emergency Deficit Control
Reaffirmation Act of 1987 (Public Law 100-119) (hereafter referred to as
``the Act''), and section 11002 of the Omnibus [Budget] Reconciliation
Act of 1989 (Public Law 101-239) (``OBRA'') [set out above], I hereby
order that the following actions be taken to implement the
sequestrations and reductions determined by the Director of the Office
of Management and Budget as set forth in his report dated December 27,
1989, under section 251 of the Act [2 U.S.C. 901] and section 11002 of
the OBRA:
(1) Each automatic spending increase that would, but for the
provisions of the Act, take effect during fiscal year 1990 is
permanently sequestered or reduced as provided in section 252 of the Act
and section 11002 of OBRA.
(2) The following are sequestered as provided in section 252 of the
Act and section 11002 of OBRA: new budget authority; unobligated
balances; new loan guarantee commitments or limitations; new direct loan
obligations, commitments, or limitations; spending authority as defined
in section 401(c)(2) of the Congressional Budget Act of 1974, as amended
[2 U.S.C. 651(c)(2)]; and obligation limitations.
(3) For accounts making payments otherwise required by substantive
law, the head of each department or agency is directed to modify the
calculation of each such payment to the extent necessary to reduce the
estimate of total required payments for the fiscal year by the amount
specified by the Director of the Office of Management and Budget in his
report of December 27, 1989.
(4) For accounts making commitments for guaranteed loans or
obligations for direct loans as authorized by substantive law, the head
of each department or agency is directed to reduce the level of such
commitments or obligations to the extent necessary to conform to the
limitations established by the Act and by OBRA and specified by the
Director of the Office of Management and Budget in his report of
December 27, 1989.
All reductions and sequestrations shall be made in strict accordance
with the specifications of the December 27th report of the Director of
the Office of Management and Budget and the requirements of section
252(b) of the Act and section 11002 of OBRA.
This order shall be deemed to have become effective on October 16,
1989, as provided in section 11002 of OBRA.
This order shall be published [in the] Federal Register.
George Bush.
Final Order of the President of the United States, Oct. 16, 1989, 54
F.R. 42795, which provided emergency deficit control measures for fiscal
year 1990, was rescinded by section 11002(a) of Pub. L. 101-239, set out
above, upon issuance of New Final Order of the President of the United
States, Dec. 27, 1989, 54 F.R. 53469, set out above.
Initial Order of the President of the United States, Aug. 25, 1989,
54 F.R. 35627, which provided emergency deficit control measures for
fiscal year 1990, was superseded by Final Order of the President, Oct.
16, 1989, 54 F.R. 42795.
1989--Final Order of the President of the United States, Oct. 15,
1988, 53 F.R. 40696.
Initial Order of the President of the United States, Aug. 25, 1988,
53 F.R. 32881.
1988--Pub. L. 100-203, title IV, Secs. 4001, 4041(b), 4061, title
VIII, Sec. 8002, Dec. 22, 1987, 101 Stat. 1330-42, 1330-84, 1330-100,
1330-281.
Pub. L. 100-202, Sec. 1, Dec. 22, 1987, 101 Stat. 1329.
Order of the President of the United States, Nov. 20, 1987, 52 F.R.
44960.
Order of the President of the United States, Oct. 20, 1987, 52 F.R.
39205.
1986--Pub. L. 99-366, July 31, 1986, 100 Stat. 773.
Pub. L. 99-349, title II, Sec. 202, July 2, 1986, 100 Stat. 748.
Pub. L. 99-255, Mar. 7, 1986, 100 Stat. 39, as amended by Pub. L.
99-322, Sec. 1, May 23, 1986, 100 Stat. 494.
Order of the President of the United States, Feb. 1, 1986, 51 F.R.
4291.
Section Referred to in Other Sections
This section is referred to in sections 691c, 901, 903, 905, 906,
907a, 907b, 907c, 907d, 922 of this title; title 21 section 379g.
